Director-General, Department of Provincial and Local Government, Mr Derek
Powell
14 July 2006
Introduction
The Deputy President of the Republic of South Africa, Ms Phumzile
Mlambo-Ngcuka, accompanied by Cabinet Ministers, the Premier of the Western
Cape Ebrahim Rasool and his provincial executive and senior government
officials will visit the Eden District in the Western Cape province on Friday,
14 to Saturday, 15 July 2006.
The Deputy President will interact directly with the District and Local
Municipal leaders, key sectors and the public in an effort to strengthen
performance at a local government level. Presidential Izimbizo are aligned with
Project Consolidate, a hands-on Local Government support and Engagement
Programme as well as the Accelerated and Shared Growth Initiative for South
Africa (AsgiSA). Central to these Izimbizo is the Integrated Development
Planning (IDP), process, which enables and empowers communities to participate
in confirming local development priorities.
Background
In 2005, in the previous phase of the Presidential Izimbizo programme, the
main focus was the municipal council, its officials and Ward Committees, with
attention paid to Project Consolidate municipalities. The aim was to focus on
problems related to less than optimum levels of service delivery. In this
current phase, the Presidential Izimbizo Programme will still focus on the
council and officials. Added to this current phase is the opportunity for
interaction with stakeholders, i.e. business, youth groups and farmers.
Through these Izimbizo, an opportunity is provided for all three spheres of
government, stakeholders and communities to interact in an unmediated manner on
matters of service delivery and development.
Key to the support provided to municipalities is strengthening the capacity
to deliver. To support this objective, the January 2006 Cabinet Lekgotla
adopted three strategic priorities to support local government sector for the
next five years. These are:
* mainstreaming hands-on support to local government to improve municipal
governance, performance and accountability
* addressing the structure and governance arrangements of the State in order to
better strengthen, support and monitor local government
* refining and strengthening the policy, regulatory and fiscal environment for
local government and giving greater attention to enforcement measures.
Summarised profile of Eden District Municipality
Eden is the third largest District within the Western Cape Province. It
comprises of seven local municipalities and a District Management Area. Some of
the challenges faced by the District are the rapid urbanisation, in-migration,
and rising health indicators. The District experienced a 39% increase in urban
population between 1996 and 2001 and a 19% increase in the rural
population.
The District Municipal area is made up of seven Local Municipalities,
namely:
* Bitou Municipality
Plettenberg Bay; Die Brakke; Keurboomstrand; Kranshoek; Kurland; Nature's
Valley; Platbos; The Crags; Wittedrif
* George Municipality
George; Bergplaas; Blanco; Herold; Heroldsbaai; Hoekwil; Kleinplaat;
Pacaltsdorp; Rondevlei; Wilderness; Wilderness East
* Kannaland Municipality
Anysberg; Badshoogte; Bergsig; Calitzdorp; Droevlei; Kraaldorings; Ladismith;
Oosgam; Plathuis; Vanwyksdorp; Vleirivier; Zoar
* Knysna Municipality
Barrington; Bracken Hill; Buffelsbaai; Concordia; Gouna; Karatara; Knysna;
Kraaibos; Kruisvallei; Mielierug; Noetzie; Sedgefield; Sonskyn
* Hessequa Municipality
Albertinia; Askraal; Brandrivier; Gouritsmond; Grootjongensfontein; Heidelberg;
Port Beaufort; Reisiesbaan; Renier; Riversdale; Stilbaai-Oos; Stilbaai-Wes;
Vermaaklikheid; Witsand
* Mossel Bay Municipality
Boggomsbaai; Brandwag; Buysplaas; Cooper; Friemersheim; Gannakraal; Glentana;
Groot-Brakrivier; Hartenbos; Herbertsdale; Klein-Brakrivier; Mossel Bay;
Reebok; Ruitersbos; Sinksabrug; Tergniet; Vleesbaai
* Oudtshoorn
De Rust; Dysselsdorp; Grootkraal; Kruisrivier; Le Roux; Matjiesrivier;
Oudtshoorn; Schoemanshoek; Stolsvlakte; Vlakteplaas; Volmoed; Waaikraal.
Kannaland Local Municipality is the only municipality that has been
identified to receive support under Project Consolidate. Education levels in
the district are low as only 31% of the population older than 20 had some
secondary education and 22% obtained grade 12. Only 9,6% of the population
completed tertiary education.
George is the economic hub of the District and also houses the District
Municipal offices. The District is characterised by good holiday resorts and
beaches stretching across the garden route. Some of the evident challenges of
Eden District include unemployment, poverty, housing and health challenges.
There are a number of Khoi-San communities within the Eden District. Two well
established Griqua communities are based at Kranshoek, Plettenberg Bay and the
Crags near Knysna.
Municipalities have five Key Performance Areas which are assessed and
monitored. They are:
* Basic Service Delivery and Infrastructure
* Local Economic Development
* Municipal Transformation and Institutional Development
* Municipal Financial Viability
* Good Governance and Community Participation.
Basic Service Delivery and Infrastructure
The District Municipality has made some progress with regard to provision of
service delivery. The main challenge in the District is the provision of
housing. This is as a result of the rapid urbanisation and in-migration,
especially in informal settlement areas.
Access to water and sanitation in the rural areas in particular needs to be
improved. George Local Municipality has the highest number of buckets in formal
housing areas. All the local municipalities within the district have adopted
indigent policies and are providing free basic water and electricity.
The total number of households with electricity backlogs in the Eden
District stood at 16% in March 2005. Kannaland Local Municipality had the
highest percentage of backlog which was 24%. The provision of free basic water
to the total households in the District is 67% and 84% of the poor.
Eden District Municipality received a total of R37, 916 million allocations
in the Municipal Infrastructure Grant for the financial year 2006/07. Since
April 1994 to April 2006, the national Department of Housing indicated that
56,99% of 36 399 planned units in Eden District are completed. Another 7 043
are still under construction.
Local Economic Development
Eden District Municipality is a region with a strong and highly diversified
local economy and is endowed with rich natural resources and a growing pool of
good human resources. Economic growth for the District Municipality in 2004/05
was three percent, which is higher than the average for the Western Cape.
The District Municipality contributes over six percent to the Gross Domestic
Product of the Western Cape province. The growth is mainly driven by the
wholesale and retail sectors largely benefiting from the proceeds of tourism.
Tourism contributes 15,2% to the economic activity of the District. Financial,
property and business services contribute 13,6% and manufacturing is 13,5%.
Agriculture and tourism are the drivers of the District economy. Eden accounts
for 9% of the employment base of the province and 10% of its unemployment.
Unemployment stands at 26.5%.
Municipal Transformation and Institutional Development
Most of the Local Municipalities have demonstrated relative administrative
and political stability over the past five years. Currently, there are acting
municipal managers in three of the municipalities, namely Kannaland, Mossel Bay
and George. The process of filling some of the Municipal Manager posts is
nearly complete Vacancies with regard to professionals exist especially in
Eden, Kannaland, George and Knysna.
The District Municipality has adopted the District Performance Management
Framework and secured a service provider to finalise and organise the
Organisational Performance Management System. Some Local Municipalities have
also adopted Performance Management Systems.
Municipal Financial Viability
The District Municipality and its local municipalities have budgeted R1,186
billion for its total operating revenue. The amount of R1,160 billion was
budgeted for operating expenditure and R335 million for capital
expenditure.
The expenditure on salaries and wages is 37%, which is higher than the norm
of 30% of the operating revenue determined by National Treasury. The operating
grants are low in relation to total operating revenue but should support the
provision of free basic services to communities within the District
Municipality and its local municipalities.
The Auditor-General has performed the audits for Kannaland in 2006. The
findings of the Auditor-General have not been released to the municipality.
Mossel Bay and George consistently received unqualified audit reports from the
Auditor-General for three financial years since 2002/03. Other municipalities
have consistently received qualified reports from the Auditor-General.
Kannaland Municipality is currently receiving support under Project Consolidate
in this regard.
Good Governance and Public Participation
All local municipalities have adopted a policy to implement the Ward
Committee system. Although Knysna is still experiencing some challenges with
regard to implementation of the policy, other municipalities are on course.
Some municipalities have budgeted for the functionality of the Ward Committee
system.
There is a need to strengthen working relations between Municipalities and
Ward Committees in the District. Although community development workers have
been deployed in the area, challenges of communication and availability of
government information remain.
Conclusion
The Presidential Izimbizo forms part of efforts to accelerate the
implementation of government's Programme of Action (PoA) and improving the
institutional capacity of local government to deliver basic services to
communities as well as advancing community participation to create a better
life for all.
These Izimbizo for 2006 present a platform for engagement between
government, civil society, business, key stakeholders and communities. It will
also seek to create a favourable environment for government to implement the
three local government priorities for the next five years.
These interactions will seek to provide immediate solutions to challenges
experienced by Eden District, some of which are raised in this preview, namely
that of service delivery and development at local government level.
Issued by: Department of Provincial and Local Government
14 July 2006
Source: Department of Provincial and Local Government (http://www.dplg.gov.za)
