Government and Housing MEC, MJ Mafereka
24 March 2006
Honourable Speaker,
Madame Premier,
Honourable members of the Legislature,
Honourable Mayors and Speakers,
Marena le dikgosi,
Distinguished guests;
Mr Speaker, in this esteemed house, announcements have been made of several
anniversaries which our nation will be celebrating this year. The importance of
these anniversaries cannot be overemphasised. All of them, in their variety,
serve to remind us that our commitment to bring about âa better life for allâ
is shaped by the commitments of those who went before us. We are revolutionary
descendants of those who revolted against deprivations visited on the
overwhelming majority of our countryâs people.
Mr Speaker, as you are aware we can now proudly report that the South
African local government elections were held successfully and were pronounced
free, fair and credible by the Independent Electoral Commission (IEC). We would
like to thank you honourable members of the House and many South Africans for
the many varied contributions that you have made towards a successful poll on 1
March 2006.
The people of the Free State have once more given a mandate to the African
National Congress (ANC), the party that has earned an unrivalled reputation as
a vanguard of the struggle for progressive change in South Africa. They know
that it has now become possible to insist on accelerated progress, with the
distinct hope of being heard.
Mr Speaker, I therefore pause to salute the outgoing councillors who are a
pioneer generation of democratic local government leaders in our country. Their
work not withstanding shortcomings forms indispensable bedrock for our future
endeavours.
The solid foundation they have laid, gives us and the incoming councillors,
the self-confidence to say that:
* no community will be using the bucket system by 2007
* all communities will have access to clean water and decent sanitation by
2010
* all communities will have access to electricity by 2012
* all informal settlements will be eradicated by 2014.
Mr Speaker, I take this opportunity to congratulate all the newly elected
councillors as well as Mayors and Speakers who are in this house today.
Mr Speaker, the core business of my Department is developmental local
governance and creation of sustainable human settlements. Do allow me to
reflect on the departmentâs commitments of the past financial year.
Specifically, we had committed ourselves to do the following:
* co-ordinate the effective implementation of the Municipal Infrastructure
Grant (MIG) and evolve rigorous monitoring processes of monitoring MIG funded
projects
* develop and implement a support programme in partnership with district
municipalities to enhance the quality of municipal Integrated Development Plans
(IDPs)
* intensify the implementation of Project Consolidate to build the capacity of
the 12 selected municipalities to deal with service delivery and institutional
challenges that afflict these municipalities. Furthermore, we mobilised
experts, facilitators and resources drawn from critical stakeholders to support
selected municipalities.
* train the remaining 205 Community Development Workers (CDW) learners and
strengthen ward committees in partnership with the South African Local
Government Association (SALGA)
* work with Traditional Leadership Institutions (TLI) to ensure that
traditional communities are agents of socio-economic development for
sustainable rural development
* implement various housing programme to build 12 000 housing units.
Achievements
Mr Speaker, we are proud to announce the following as the highlights of our
achievements:
Housing and human settlements
* 9 523 housing units were completed and handed over to respective
households and 2000 of these units were in rural areas of Qwaqwa and Thaba
Nchu.
* 7 900 additional subsidies were allocated in December 2005 to further
reduce housing backlog in the province with the intention to complete and
transfer these housing units to beneficiaries by 31st March 2006. Due to recent
rains however, this deadline had to be extended.
* We have started with the programme of issuing title deeds to various
households in different local municipalities. We will be continuing with this
programme in phases across the province because Title Deeds are important
documents confirming ownership and security of tenure.
* 102 MIG and Provincial Infrastructure Grant (PIG) infrastructure projects
are under construction to benefit 918 379 households.
* 10 Housing sector plans have been completed thus making the Free State the
only province where all local municipalities have finalised these plans. These
housing sector plans will be used to inform the provincial multi-year housing
development plan.
* We have implemented a provincial turn s round strategy which focuses
on:
* improved comprehensive planning approach
* the pivotal role played by local municipalities in the housing delivery
process
* grading or ranking of contractors and assessment of professionals or
consultants in terms of performance in housing delivery
* completion of incomplete housing projects. In September 2005, we launched a
pilot project focusing on Xhariep District where 153 housing units have been
constructed and others structurally corrected. Progress is more than 90 percent
complete in this regard. On the 17 February 2006, the programme was extended to
the Lejweleputswa where 340 incomplete houses will be finalised
* capacity building in all local municipalities, among beneficiaries and other
stakeholders through programmes such as consumer education and emerging
contractor support.
Project Consolidate
Our municipalities have completed a variety of infrastructure projects
(water, sanitation, roads, street/community lighting, etc) and as a result,
communities and households have benefited through services provided and
temporal job opportunities created.
The Department has in partnership with the Development Bank of Southern
Africa (DBSA) and the State Information Technology Agency (SITA) supported
selected Project Consolidate municipalities in achieving the following:
* The development and subsequent endorsement of Master Systems Plans (MSPs)
by six Project Consolidate municipalities Moqhaka, Naledi, Phumelela, Nala,
Tswelopele and Tokologo. MSPs are Information Technology (IT) strategies geared
towards enhancing the ability of municipalities to discharge their core
mandates and responsibilities by using technology to fast-track municipal
processes that are critical for effective service delivery.
* Improved operations and maintenance of water and wastewater treatment
plants at Moqhaka, Kopanong, Setsoto, Phumelela, Mohokare, Matjhabeng, Tokologo
and Maluti-a-Phofung.
* Completion and implementation of short catalytic projects at Moqhaka,
Maluti a Phofung, Phumelela and Tokologo municipalities for planning and
surveying, installation of high mast lights; upgrading of gravel road and storm
water and provision of bulk water supply respectively. All these projects to
the exception of the bulk water supply project have been completed. The
benefits to communities in these localities are the provision of water services
within set standards, facilitating access and mobility of residents and
providing additional surveyed areas where other service infrastructure would be
installed.
* The deployment of water and sanitation technicians and an engineer at
Phumelela, Naledi and Kopanong local municipalities. The deployment of an
engineer at Kopanong has been done in partnership with the Department of Water
Affairs and Forestry (DWAF).
Building the capacity of municipalities to manage their finances
The Department has contributed to the improvement of municipal financial
management capacity through the municipal support programme that entails the
deployment of municipal finance experts to municipalities to assist and guide
with the development of annual financial statements, finance related policies
and updating of municipal financial administration.
MIG and the Provincial Infrastructure Fund (PIF)
Through the MIG government has made an investment of R434.9 million for
facilitating the implementation of the mentioned 102 infrastructure projects in
our province to deal with massive infrastructure backlog (roads and storm
water, water, sanitation, social amenities, street and community lighting).
Importantly, R72.6 million of the total allocated amounts was earmarked for
eradicating the most abhorred bucket system and thereby progressively restores
the dignity of our people by providing basic adequate sanitation.
Together with the Council for Scientific and Industrial Research (CSIR), the
Department had continued auditing the quality of drinking and wastewater at the
local municipalities that are the Water Services Authority (WSAs).
Community Development Workers (CDW) and Ward Committee System
The training of CDW learners (a special cadre of public servants that would
assist government in forging links with communities and supplementing our
efforts of strengthening ward committee system) is gathering momentum. We have
succeeded in facilitating the training of 94 CDW learners who completed their
experiential training by August 2005 and had since worked in collaboration with
municipalities and other provincial sector departments in ensuring community
participation in government. An additional 184 CDW learners have been recruited
and they started their learnership on November 2005.
Facilitating effective planning for development
For the period under review, the Department assessed and processed a variety
of land development applications. These processes are critical in ensuring
orderly planning for economic and human settlement development.
In partnership with the office of the Premier, we have compiled the
Provincial Spatial Development Framework (SDF) to provide spatial expression to
development opportunities entailed in the Free State Growth and Development
Strategy (FSGDS). Our SDF guides the investment of government and its social
partners on specific spatial localities with the potential to maximise
development.
We have supported municipalities to develop disaster management plans as
sectoral plans to the IDP.
Challenges facing local government and housing
Mr Speaker;
Housing development faces various challenges and impediments, chief among
these are the following:
* unavailability of township registers
* unavailability of serviced sites and suitable land
* lack of capacity on administrative matters (beneficiary management), project
management, technical and financial matters regarding housing
* ack of dedicated housing units and adequate staffing in some
municipalities.
There is an emerging consensus in the country on challenges that face local
government. Informed by an organising framework that focuses on key performance
areas of local government, these challenges are:
* Institutional capacity and municipal transformation: core municipal
systems not established or implemented, inadequate municipal management
capacity and high vacancy levels, poor accountability mechanisms and challenges
in areas of financial management, programme management, engineering and
organisational development.
* Basic service delivery and infrastructure: slow pace, poor quality of
services delivered, water supply as well as sanitation and housing backlogs
emerge as the most critical challenges.
* Local Economic Development: high level of poverty due to unemployment,
poor quality LED plans and scarcity of municipal LED specialists
* Financial viability and management: inadequate billing, debt management
and credit control systems, poor municipal financial management capacity and
systems, low revenue base due to high levels of indigence; and
* Good governance: instability within and between political and
administrative domains, poor communication between council and communities and
non functioning ward committees
Our approach to implementation
Mr Speaker, in dealing with these challenges, our approach will be informed
by the following:
* an implementation approach and three overarching strategic priorities for
this term of local government as approved by Cabinet
* the Breaking New Ground (BNG) strategy as outlined by the Ministry of
Housing
The three strategic priorities to guide our work in this term of local
government (2006-2011) are:
* mainstreaming hands-on support to local government to improve municipal
governance, performance and accountability
* addressing the structure and governance arrangements of the state to
better strengthen, support and monitor local government
* refining and strengthening enforcement measures of the policy, legislative
and fiscal environment for local government.
Importantly, priority actions will be implemented in an integrated manner by
all spheres of government and social partners aligned to the Free State Growth
and Development Strategy (FSGDS) priorities.
Our plan for local government and housing
Social and human development
Mr Speaker, we will expend efforts in accelerating the implementation of BNG
to evolve integrated sustainable human settlement and enhancing the capacity of
municipalities through facilitating the provision of hands on support to
municipalities for easy implementation as follows:
Facilitate the provision of social and economic amenities programme that is
intended to be commenced with the identification and prioritisation process
with various local municipalities, provincial departments, national
departments, State Owned-Enterprises (SOEs), South African Local Government
Association (SALGA) Free State and relevant non-government organisations
(NGOs).
Accreditation of Local Municipalities Programme (LMP) has already started
with the Mangaung Local Municipality identified as the priority local
municipality in the Province. Presently, the Department and Mangaung Local
Municipality are engaged in creating conducive environment for effective and
sustainable implementation of the accreditation process. Other local
municipalities will simultaneously be engaged in capacitation programmes for
subsequent accreditation. Partnerships will be entered into with relevant
stakeholders to resource and sustain the momentum with an ultimate aim of
âcrowding inâ resources to create the critical mass of local municipalitiesâ
empowerment in respect of housing and human settlement scope of work.
Enhanced Extended Discount Benefit Scheme (EEDBS) will be implemented to
provide tenure to occupants of pre-1994 housing stock. Deserving beneficiaries
will have these units transferred to their names after the normalisation and
regularisation processes have been undertaken.
Post 94 housing correction of defects programme seeks to correct the defect
of housing unit built through the housing subsidy scheme covering the period
between 1 April 1995 to 31 March 2002.
Farm Worker Housing Programme (FWHP) will be implemented through a pilot
project from which lessons will be drawn to upscale the programme for wholesale
implementation. Information regarding the pilot site will be communicated
soon.
Social Housing and Medium Density Programmes (SHMDP) will be commenced in
partnership with Mangaung Local Municipality where we are allocating 315
housing units, which will start with the assistance and partnership of the
National Housing Finance (NHFC), Social Housing Foundation (SHF) and the
banking sector.
Acquisition of suitable Land Programme will be undertaken by the Department
in collaboration with a Special Purpose Vehicle (SPV) established by the
Minister of Housing to acquire suitable land for housing development and deal
with inherited spatial distortions.
Land Restitution Programme in partnership with the Land Claims Commission,
we will be providing Housing for Restitution Programme beneficiaries. Our focus
will be on the following cases in Moqhaka, Kroonstad (Marantha) and Maluti a
Phofung, Harrismith (Schoonplaatz).
Informal Settlement Upgrading Programme (ISUP), the Department will conduct
an audit of all shacks in the province in collaboration with municipalities and
compile a report by June 2006. We are working on resolving impediments on land
development processes to ensure the effective implementation of the Grassland
Pilot Project on informal settlement upgrading.
Spatial Integration and Urban Restructuring Programme (SIURP) in partnership
with Matjhabeng Local Municipality, we will identity a project to pilot this
programme.
We are happy to announce that the Housing Panel of Advisors is now in place
whose members will be introduced later this evening.
We will be launching the Rental Housing Tribunal by July 2006 in order to
effectively regulate relations between landlords and tenants.
We will improve on quality of housing products by actively engaging the
National Home Building Regulating Council (NHBRC) in our housing construction
and improve on specifications of the Department.
In the spirit of Social Contract for Rapid Housing Delivery, the Department
will continuously engage and mobilise relevant stakeholders to take part in the
delivery processes including municipalities and housing institutions.
We will be spending R522 million for this financial year and are happy to
announce that we will be allocating 12.000 housing units using a variety of
housing programmes to build houses. During the course of April 2006, we will
advertise housing tenders.
In celebrating various anniversaries of our liberation struggles, we will be
allocating ring fenced housing units as follows:
* in acknowledging 30 years of June 16 uprising, we will allocate 500
housing subsidies to construction companies owned and led by youth
* in acknowledging 50 years of Womenâs march to Pretoria in August 1956, we
will allocate 1.000 housing units to women led construction companies that have
not benefited in the past
* for 16 Days of Activism against Abuse of Women and Children, we will build 32
housing units.
Providing hands on support to municipalities
In preparation for the National Cabinet Lekgotla of July 2006 and working
together with the Department of the Premier, we will solicit Provincial
Departmentsâ support to municipalities.
Mr Speaker, we will be mainstreaming hands on support to local government to
improve municipal governance, performance and accountability. As indicated this
is a clarion call to all of us, provincial sectoral departments, national
departments, state agencies and government social partners to work together
with local government in tackling service delivery challenges.
In partnership with the Independent Development Trust (IDT), we will
strengthen provincial and district Programme Management Units (PMU).
Furthermore, we will solidify our partnership with the Development Bank of
Southern Africa (DBSA) in ensuring that government latest initiative of
deploying engineers and seasoned project managers called Senza Manje, â we are
doing nowâ led by the bank is successful. We are engaging DBSA on modalities of
working together on this initiative.
Strategically, emphasis will be placed on eradicating the bucket system and
together with the regional office of the Department of Water Affairs and
Forestry (DWAF); we will ensure expeditious and effective use of allocated
resources.
We will be facilitating capacity building and leadership development
programmes for newly elected municipal leaders and administrative leadership in
partnership with SALGA.
Through Project Consolidate, we will mobilise resources from critical
stakeholders, departments and state agencies to support municipalities in
discharging their mandates. The recent pronouncement of Cabinet, obligating all
government departments to support our efforts of supporting all municipalities
and making budgetary provision in their voted funds and strategic plans is a
welcomed development. To this end we will be developing a Provincial Action
Plan by 30 April 2006 that entail concrete actions of all provincial sectoral
departments in providing support and resources to local government.
Mr Speaker, we have finalised the internal processes for restructuring the
Department to strengthen our capacity to deliver on our mandate to support
municipalities.
Economic growth, investment and job creation
(Optimising infrastructure investment)
We will be working with our colleagues in public works, roads and transport,
treasury and education in ensuring that we derive better mileage in our
collective investment in infrastructure and follow through decisions taken at
the Infrastructure Summit last year.
We will be expending efforts in supporting the initiatives of municipalities
to promote local economic development by maximising economic development
potential in their localities. A capacity building programme will be
implemented to assist municipalities in developing LED strategies and
implementation plans aligned to economic development strategies articulated in
FSGDS.
Our LED initiative will be aimed at supporting the implementation of the
Accelerated and Shared Growth Initiatives for South Africa (AsgiSA) with
district municipalities, aligned to Spatial Development Framework.
Effective governance and administration
We will be overseeing the training of 184 CDW learners currently undergoing
the CDW learnership and lay a solid foundation for post training employment
opportunities by engaging municipalities and other sectoral departments. The
responsibility of CDW vests with all of us. As indicated 94 CDW soon to be
absorbed by the Department will be used in strengthening ward committees and
forging of a link between government and communities.
We will be supporting municipalities in implementing PMS in partnership with
SALGA and dplg. Importantly, we will develop a generic performance contract by
30 May 2006 and facilitate the process for all municipalities to re-negotiate
their municipal managersâ contract by 01 July 2006.
We will be hosting a provincial VUNA awards event where service delivery
achievements attained by municipalities will be celebrated and documented.
We will strengthen and rationalise development planning processes across
government to focus on the planning capacity at municipal level. Critically, we
will actively participate in the IDPs assessment programme and corresponding
engagement plan to be undertaken between April and June 2006.
Mr Speaker, we will facilitate the implementation of Inter-Governmental
Relations Act by working with district municipalities and SALGA in facilitating
the establishment of institutional arrangements for implementing the Act.
Emphasis will be placed on fostering partnerships for development with
municipalities for developing agreements on core municipal processes and
programmes such as planning, PMS, LED, CDW, MIG, Disaster Management,
traditional leadership, municipal finances and capacity building
initiatives.
We will champion the promulgation of legislation to implement the national
framework legislation on the institution of traditional leadership, repeal and
establish local houses. We will continue to support the work of the National
Commission on Traditional Leadership (NCTL).
Justice, crime prevention and security
Regarding disaster management, we will be developing disaster management
framework, nurturing related institutional structures and evolving disaster
prevention networks.
Mr Speaker;
I want to conclude by presenting to this house the words of Martin Luther
King, Jr, (One question: one answer)
âCowardice asks the question â is it safe?
Expediency asks the question â is it politic?
Vanity asks the question â is it popular?
But conscience asks the question â is it right?
And there comes a time when one must take a position that is neither safe,
nor politic, nor popular but one must take it because it is right.â
Let me take this opportunity to thank you the Speaker, the Premier, my
colleagues in the Executive Council (ExCo), the Chairperson and members of the
Portfolio Committee on Local Government and Housing and members of the
legislature for their guidance and support.
Allow me to take this opportunity to thank my Head of the Department, Kopung
Ralikontsane and the staff for their support and commitment to implement our
priorities.
I therefore present my Departmentâs budget vote as reflected in annexure
A.
Lastly, Mr Speaker, allow me to thank my wife Tshidi and the family for
their unwavering support.
Ke a leboha
Annexure A
Budget allocation 2006/07
The total amount appropriated for the 2006/07 financial year for the
Department Local Government and Housing amounts to R718 062 000 which includes
the housing grant to the amount of R522 601 000. The total amount appropriated
can be summarised as follows:
Administration
R57 273 000
Housing Administration
R574 531 000)
Local Government Administration
R86 258 000
Economic classification
R88 781 000
Goods and Services
R68 848 000
Transfers and Subsidies
R552 676 000
Capital Assets
R7 757 000
The main elements with regard to the appropriation in regard to transfers
and subsidies are:
* Municipal Infrastructure
R17 744 000
* Planning and Surveying
R6 731 000
* Integrated Development and Planning
R3 101 000 27 576 000
Universities and Technikons
R1 100 0000
Non-Profit Institutions
R824 0000
Households
R523 176 000
Issued by: Department of Local Government and Housing, Free State Provincial
Government
24 March 2006
