Department of Public Works and Infrastructure Budget Vote 9 Speech 2017/2018, tabled by MEC Dora Kotzee, 24 March 2017
Madam Speaker
Deputy Speaker
Honourable Premier, Mr. ES Magashule
Honourable Members of the Executive Council
Honourable Members of the Legislature
Chairperson of the Portfolio Committee on Public Works and Infrastructure, Roads and Transport and Human Settlement
Executive Mayors, Mayors, Speakers and Councilors
Director General, Heads of Departments and Municipal Managers
Distinguished guests
Comrades and Friends
Introduction
Madam Speaker
It is with a profound sense of responsibility that I stand before this august house to table the Department of Public Works and Infrastructure budget vote for the 2017/2018 financial year.
It is a great honour because we do so in the year when my organisation the African National Congress has declared this year as the year of OR Tambo and the year of Unity in Action.
This year marks the centenary of the birth of Oliver Reginald Tambo, one of our most outstanding revolutionaries of the national liberation movement.
OR as he was affectionately called was a distinguished leader of our people who led the struggle for freedom and democracy and was an embodiment of the struggle for non-racialism, non-sexism and unity.
We know the responsibility we owe to our people to lead them along a path that leads to a “Better life for all”, to deliver on our promises. OR Tambo valued and prized freedom of his people above anything else.
We are presenting this budget vote today under tough economic conditions where our economic growth levels are very low, just 1 per cent a year per capita. Our unemployment rate is unacceptably very high and about 35 per cent of our country’s labour force is unemployed, poverty persist in our townships and rural areas.
The wealth of our country is still concentrated in few hands whilst the poor remain poor. These are some of the factors that call for a speedy resolve on the implementation of Radical Socio - Economic Transformation. Radical Socio-Economic Transformation, Madam Speaker, is about fundamental change in the structure,
systems, ownership patterns, management and control of the economy for all South Africans, especially the black people.
Progress in 2016/2017
Madam Speaker
In seeking to address the triple challenges of poverty, unemployment and inequality, the Department seeks to provide different pathways towards catering for the needs of our people.
Since the first democratic government of 1994, the Department has made considerable strides towards the achievement of and expansion of the frontiers of human fulfilment and the continuous extension of the frontiers of freedom, of which President Mandela spoke about in the first session of the first democratic parliament.
In our budget speech of 16 March 2016 in Zamdela, Sasolburg, Madam Speaker, we outlined several priority areas for implementation and indeed we have progressed in this regard.
Madam Speaker
During the past financial year, the Department due to good corporate governance practices was awarded the second place (silver award) at the prestigious National Batho Pele awards for the most ethical and professional Department in the country.
The aforesaid reiterates and confirms the huge strides made by the Department of Public Works and Infrastructure under the current political leadership and dispensation. Furthermore, as an equal opportunity employer we have in terms of our approved strategy, employment equity and human resources plans achieved 50% representation of women at senior management level, whilst we exceeded the 2% disability target, by having 2,7% disabled staff members.
We still have a challenge of representivity of differently abled staff at Senior Management level.
In carrying out our mandate of delivering socio-economic infrastructure projects on behalf of client departments and of our own new maintenance projects, we have completed the following projects in the current financial year 2016/2017:
- QwaQwa: Matsikeng Primary School and Bonamelo College student accommodation;
- Bloemfontein: We installed Access Control Booms at OR Tambo, Fidel Castro buildings and Hamilton Regional Offices Phase 1. The installation of these boom gates has increased our revenue collection;
- Sasolburg – Zamdela: Kopanelang Thuto school and the construction of an admin block in Ntswanatsatsi Primary School;
- Kroonstad: Voortrekker Hospital Security Division;
- Memel: Umcebo Primary School;
- Through our Artisans and EPWP participants we renovated municipal offices in
Tweeling and Cornelia
The following infrastructure projects are still under construction and will be completed in 2017/2018 financial year:
- Bloemfontein: Soetdoring Nature Reserve Upgrade of Train Bush Camp, Medfontein Upgrade, OR Tambo & Fidel Castro Phase 3 upgrades, Old Eureka Hostel, Botshabelo New Community Hall, Hamilton, phases 2&3, MPL Houses Upgrade;
- QwaQwa: Mbeki Section New Community Hall, Lusaka Section New Community Hall;
- Theunissen: Masilonyana Community Hall, Thaba Nchu: (Ratlou Complex) Phases 2&3.
Madam Speaker
As we have stated in this August house last year that we place property transformation high on our agenda. We will and are determined as part of radical socio-economic transformation to transform the property industry, yet challenges on this front persist. The lease portfolio is sitting at 26% (black) and 74% (white) however, there are still
opportunities to change the current ratio as most of the existing leases have expired and are currently renewed on a month-to-month basis. The Department currently pays R6, 487 million to black landlords and R7, 620 million to previously advantaged individuals for rent monthly.
The Department contributes towards decent living conditions and sustainable Human Settlements through the disposal of residential properties to the previously disadvantaged individuals. Honourable Speaker, 9 residential properties have been sold to date as follows;
- 5 houses in Thabo Mofutsanyana District
- 2 houses in Xhariep District
- 2 houses in Lejweleputswa District
- 11 residential properties have been donated to date as follows:
- 4 houses in Thabo Mofutsanyana District
- 7 houses in Xhariep District
In assisting municipalities to sustain service delivery, a total amount of R230, 167 million in Water and Electricity Bills and R273, 839 million in municipal rates and taxes has been paid as at February 2017.
We still however, have challenges in this regard with a budget shortfall of R93, 745 million for Rates & Taxes and R415, 312 million for Municipal Services.
The Department continues to increase the revenue streams of Government in the Province from properties, Madam Speaker, to date, we have collected an amount of R38, 255 million.
Madam Speaker
The Free State province had a target of 61 022 work opportunities in the 2016/2017 financial year for all Public Bodies participating on EPWP within the Province.
As at the end of quarter 3 of 2016/2017, the Province created 45 910 validated work opportunities, of which over 70% of those were women, 50% were youth 1% were people with disabilities.
The department will continue to drive awareness programmes to mobilise people with disabilities to participate in the programme.
The Department of Public Works and Infrastructure as coordinating Department for EPWP in the province contributed 2 144 work opportunities through implementation of massification Programmes such as Township Revitalisation Programme, Cleaning and Greening Programme, Community Work Programme and Renovation of Community Halls.
The Township Revitalisation Programme, which is the Provincial flagship initiative aimed at upgrading of township roads from gravel to paving, has been successfully implemented in the following towns for the financial year 2016/2017 namely:
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Parys, Vredefort, Cornelia, Jagersfontein, Kroonstad, Hennenman, Allanridge, Odendaalsrus, Thaba Nchu, Heilbron, Winburg, Hertzogville, Harrismith, Wepener, Dewetsdorp, Tweespruit, Excelsior, Batho, Botshabelo, QwaQwa.
Madam Speaker, in addressing unemployment, skills development and enterprise development the Department undertook the following interventions and programmes:
- The Department managed to recruit and place 19 unemployed graduates to local municipalities that require EPWP administration capacity for a period of twelve (12) months. These graduates are now exposed to formal workplace rules and regulations, while gaining practical skills and access to resources to facilitate further employment opportunities.
- Through National Youth Service Programme, the Department facilitated Artisan Development Programme under Electrical Apprenticeship, six (6) leaners were trade tested in May 2016 and were found competent as fully qualified Artisans. This achievement has now accumulated to 33 qualified Artisans since the recruitment in 2013. To showcase the impact of investing in Artisan Development Programmes for young people, in our midst, we have an important guest; a 36-year-old Tankiso Lebaka from Botshabelo. He is a young man who joined the Electrical Apprenticeship at the age of 32 and is a fully qualified Electrician and now the owner of TML Electrical (Pty) Ltd.
- In pursuit of the development of emerging contractors, the Department resuscitated its Contractor Development programme in partnership with the Department of Police Roads and Transport. Thirty-eight (38) Leaner Contractors are participating on theoretical training which was completed at the end of February 2017. Learner contractors will then proceed to the second phase of training which will provide for practical application on Departmental projects. We wish them the very best of success.
The Cleaning and Greening Programme which aims to provide income safety net and provision of work opportunities targeting the unemployed, has been expanded to most vulnerable communities such as in Gariep Dam, Edenburg, Bethany, Caleb Motshabi, Soutpan, Bronville, Bothaville, Zamdela, Vrede, Warden and Memel.
This intervention ensured that 1 210 poor and vulnerable community members benefit from work opportunities and income support.
Madam Speaker
A total of R82, 128 million has been received from the National Government as EPWP conditional grant to the Province. The Incentive Grant allocation for Municipalities for the 2016/2017 financial year is R34, 508 million and for Provincial Departments is R25, 641 million whilst that for the Social Sector is R21, 979 million.
2017/2018 budget allocation
Madam Speaker
In his own words, President Tambo said “the fight for freedom must go on until it is won, until our country is free, happy and peaceful”. We draw inspiration from these kind words of wisdom of President Tambo, and in our quest for a “Better life for All”, we will indeed make our people feel happy and peaceful by providing socio-economic
infrastructure and at the same time create work opportunities, develop the much- needed skills and enterprise development through our programmes.
Administration
A strong and capable administration base is of cardinal importance for an institution that is responsible to lead socio-economic infrastructure development and the creation of work opportunities. We will continue to up-skill our competent workforce and maintain our momentum for artisanship and professional registration at the relevant built environment councils for the disciplines of Civil, Mechanical and Electrical Engineering, Architecture, Quantity Surveying, Project Management and Occupational Health and Safety.
In our Provincial endeavour to render cost effective and efficient services we have agreed with the Department of Police, Roads and Transport to transfer 200 staff exclusively performing cleaning and gardening services at work stations affiliated to aforesaid Department during 2017/2018.
Madam Speaker, our compensation budget comprises 26,3% of the R1, 522 billion allocated and thereby demonstrates good staffing norms and standards across the board.
Madam Speaker
The 2017 State of the Province Address by the honourable Premier E.S. Magashule calls upon the provincial government to observe the “Preferential Procurement Regulations in terms of section 5 of the Preferential Procurement Policy Framework Act, 200 (Act No.5 of 2000), gazetted on January 2017”.
It is in this regard that the Department will ensure the implementation of the new amendments to the PPPFA.
For all tenders awarded that are above R30 million, contractors should subcontract 30% of the tender awarded to the SMME’s companies with emphasis on youth, women and people with disabilities. The Department will also ensure that local businesses benefit by empowering SMME’s.
The payment of service providers within 30 days, Madam Speaker, cannot be over emphasised. We are committed to ensuring that no undue suffering is placed on our suppliers because of delayed payments.
To this end, the Department is implementing a digital invoice tracking system called “Re-a Patala”. Training has already been provided in the month of February 2017 to all the relevant officials. Full implementation will be done with effect from 01 April 2017.
The success of this system depends on full co-operation from all stakeholders.
Accelerated infrastructure deliver
Madam Speaker
The provincial infrastructure encompasses the construction and maintenance of socio- economic infrastructure which is key to meeting the basic needs of our people.
This we are able to achieve by improving living conditions through better access to basic physical and social services, such as new and special schools, hospitals, libraries, community halls and paving of township streets.
In facilitating learning and teaching for the Department of Education, we are in terms of our mandate of implementing agent constructing the following multi-year school projects which started in 2016/2017:
- Hoopstad: GM Polori School
- Vrede: Thembalihle School
- Warden: Silindukuhle School
- Zastron: Mooifontein School
- Clocolan: Ruang Tsebo School
- Welkom New Chris Hani Primary School
- Sasolburg: Bekezela (Amelia)
- Hertzogville: Malebogo New Primary School
- Welkom: Adelaide Tambo New Secondary School
- Botshabelo: Tlholo New Primary School.
- Bloemfontein: Grassland New Secondary School; Grassland New Primary School; New Thuto Ke Thebe Primary School (Phase 7 (Caleb Motshabi) Primary School); Matla Phase 2; Soetdoring Nature Reserve Upgrade of Train Bush Camp; OR Tambo & Fidel Castro Phase 3 upgrades; Old Eureka Hostel, Botshabelo New Community Hall; Hamilton Phases 2&3, MPL Houses Upgrade.
- Thaba Nchu: Bartimea Special School
- Bethlehem: Rehopotswe (Bohlokong) New Primary School
- Kroonstad: New School at Johan Slabbert Special School
In response to infrastructure service delivery needs, we are implementing the following community projects through labour intensive methods (massification):
- QwaQwa: Mbeki Section New Community Hall; Lusaka Section New Community Hall
- Thaba Nchu: (Ratlou Complex) Phases 2&3
- Frankfort: Community Hall renovations
- Soutpan: Ikgomotseng Community Hall renovations
- Rouxville: Construction of a New Clinic
We will also continue to create an environment to render care and rehabilitation. In this regard, we are on behalf of the Department of Social Development busy with the construction of the Free State Substance Abuse Dependency Treatment Centre in Botshabelo.
As a province, we are committed to greening of our buildings. The retrofitting of lights in our buildings is ongoing. Service Providers have been appointed on shared savings contracts for water management to service the whole province.
The province is committed to the National Energy Efficiency Strategy and the Department of Public Works Green Building Policy which was adopted in 2015.
Property management
Madam Speaker
Transformation in the property sector remains very low, but is gaining momentum. Black owned companies own not more than 26% of the leased property portfolio in the province.
We need to strategically focus in this area in line with the second phase of radical economic transformation as referred to by the Honourable Premier. We will do our best to try and achieve 60% ratio for black landlords by 2019 as pronounced during the occasion of the State of the Province Address by the honourable Premier.
The Department intends to maximise revenue collection by identifying other state- owned strategic properties for outdoor advertising as well as the operationalisation of the revamped revolving restaurant.
The transfer of 2 611 Human Settlement properties including RDP houses to Mangaung Metro Municipality who will ultimately facilitate the final transfer of title deeds to the rightful beneficiaries in Thaba-Nchu and Heidedal areas will be realised in the 2017/2018 financial year.
Madam Speaker, the Department aims to consolidate user departments in district offices under one-stop-service to contribute towards improved service delivery by creating easy access to government services by communities.
- In Mangaung Metro:
- Thaba Nchu – Ratlou Centre the project is nearing completion for User Departments’ office accommodation.
- Fezile Dabi District – work has begun in allocating offices for User Departments in Sasolburg and Parys.
- Lejweleputswa District – Welkom: Kopano Complex: User Departments are currently consolidated at the Kopano Complex in Welkom. We are currently advertising for accommodation in town for User Departments to move out of Kopano Building.
Expanded Public Works Programme
The Honourable Premier, Madam Speaker, announced that the province will create 62 000 work opportunities under the Expanded Public Works Programme during the State of the Province Address in February 2017.
These work opportunities will be realised in four sectors of EPWP namely Infrastructure, Social, Environment & Culture and Non-State Sectors. All three spheres of government together with the Non-State Sector will contribute to the creation of these work opportunities.
The National Department of Public Works provides EPWP Integrated Grant and Social Sector Grant to Provincial Departments and Municipalities to upscale work opportunities in the province.
Madam Speaker
The EPWP Integrated Grant for provincial departments is R28, 566 million for the creation of work opportunities in Infrastructure, Social and Environment & Culture Sectors for 2017/2018 financial year.
This amount includes an allocation of R10, 900 million dedicated to the Department of Public Works & Infrastructure which will be utilised towards Cleaning and Greening Programme.
In Addition, the province is eligible for a Social Sector Grant of R23, 167 million to provincial departments that implement Social Sector programmes such as Social Development, Health, Education and Sports, Arts, Culture & Recreation.
Furthermore, 22 Municipalities including Mangaung Metropolitan have qualified for the 2017/18 Incentive Grant with a total allocation of R34, 879 million to create work opportunities in the Infrastructure, Social, Environment and Culture Sectors. A total of R86, 612 million will therefore be channeled from the National Government as EPWP conditional grant to the Province.
The Department of Public Works and Infrastructure as the provincial coordinator of EPWP will be implementing poverty alleviation programmes in the Infrastructure, Environment and culture sectors with the aim of improving community assets.
The Infrastructure programme will include the implementation of Township Revitalisation Projects in 20 townships across all four districts and the Metro. The programme has been allocated a budget of R127, 978 million and to create 550 work opportunities.
The Environment and Culture programme, of which its objective is to clean and green open spaces, township streets, public buildings and collection of waste, will continue in the 2017/18 financial year as follows:
- The Departmental Community Work Programme will continue with the total budget of R11, 908 million and create 600 work opportunities;
- Cleaning and Greening which is funded through the EPWP integrated grant with a budget of R10, 900 million and will create 837 work opportunities. 300 of these work opportunities will be targeting unemployed, unskilled communities of Qwa-Qwa;
- Cash for Waste programme will be implemented in areas where municipalities are lacking in collection of domestic waste with a budget of R3, 570 million and create 200 work opportunities.
Madam Speaker
For the current Medium Term Expenditure Framework, the Department’s budget increases at an annual average 2.4 per cent, from R1 496 billion in 2016/2017 to R1, 522 billion in 2017/2018. The R1 522 billion for 2017/2018 is an increase of R35, 784 million from that of last year. The allocation to each of the Departmental programmes for 2017/18 is divided as follows:
- Programme 1: R126, 869 million
- Programme 2: R1, 213 billion
- Programme 3: R182, 153 million
Conclusion
Madam Speaker
My sincere gratitude goes to the Honourable Premier for his leadership and guidance and my Executive Council colleagues for their unwavering support.
To Honourable Sarah Moleleki and all committee members of the Portfolio Committee on Public Works and Infrastructure, Roads and Transport and Human Settlement, thank you for your support and guidance in pursuance of your oversight role.
I am grateful to my HOD, Maditse Seoke, the very dedicated staff of the Department and to my personal office staff.
Allow me also to thank my family for their continuous support during the performance of my assignment.
Thank you.
