Mashatile on the occasion of the tabling of the 2005/06 Departmental Annual
Report
4 December 2006
Comrade Speaker
Members of the Executive Council
Honourable Members
Ladies and gentlemen
It is the last time that we are tabling to the House a report for the
Department of Finance and Economic Affairs. Henceforth, the Finance wing of the
department will report separately as the Gauteng Treasury, and the Economic
Affairs division will report as the Department of Economic Development.
The financial year 2005/06 saw the Department of Finance and Economic
Affairs making new and decisive gains in delivering on its overall mandate. Our
targeted interventions continue to have a positive impact in accelerating the
shared growth of the provincial economy. Our agencies continue to report solid
performances in line with provincial priorities.
In this regard, we note with appreciation the comments by the Portfolio
Committee on Economic Development that; overall the Department does address the
national and provincial priorities and is on track to contribute to the
overarching outcome of growing the economy.
We continue to record crucial milestones in our quest to bring about prudent
financial management across the province as well as to create jobs and fight
poverty.
As part of our contribution towards the provincial priority of building an
effective and caring government, during the period under review, we
significantly reduced the number of vacancies within the department. We also
strengthened our learnership and internship programmes as part of our
contribution to the overall objective of promoting skills development. We
continue to pay attention to transversal issues such as HIV and AIDS in the
workplace, the empowerment of women, youth and people with disability.
We are pleased that we received an unqualified audit report for the for the
2005/06 financial year. We have already put in place measures to deal
effectively with the matters of emphasis raised by the Auditor-General.
We also appreciate the comments, observations and recommendations of the
Portfolio Committee and we will implement them without fail.
I will now move to the performance of individual units.
The Provincial Treasury
Treasury is the custodian of provincial resources. Its duty is to ensure
sound financial management across the Gauteng Provincial Government (GPG). This
it does through putting in place appropriate financial management frameworks
and guidelines, building financial management capacity within departments and
municipalities, and by rendering financial accounting services.
During the review period, Treasury recorded a number of important
milestones. These include the fact that by the end of March 2006, GPG
departments had spent 97% of the total adjusted budget of R 34,3 billion. This
is a significant development as it enhances services delivery.
In line with best practice, and as indicator of the progress we are making
in improving financial management, Treasury will present the Consolidated
Annual Financial Statement for GPG by the end of the current financial
year.
There is steady improvement with regard to compliance with the Public
Finance Management Act. We wish to caution however that support for the Offices
of Chief Financial Officers needs to be strengthened. Equally, support for
municipalities with regard to the implementation of the Municipal Finance
Management Act needs to be prioritised. Going forward, Treasury will pay
attention to these challenges.
Treasury will also pay attention to the recruitment and retention of
financial management skills within Treasury itself and across the province. It
will also strive to increase the number of departments that obtain unqualified
audit opinions.
Economic development and planning
The core function of the economic development and planning unit is to
develop policies that will contribute towards sustained levels of economic
growth and job creation. The role of this unit also includes promoting and
co-ordinating integrated development that will lead to the creation of compact
cities with appropriate facilities.
Under the guidance of this unit the development of the Gauteng Spatial
Development Perspective is at an advanced stage. This Perspective will foster a
common understanding on the spatial location of development potential and
poverty across the province. It will also assist us to align investment and
development spending.
The unit continues to pay attention to the fast-tracking of land development
applications and the provision of professional planning advice. This is crucial
in providing support to the strategic objectives and targets set in the
provincial Growth and Development Strategy (GDS).
The local economic development unit continues to assist municipalities in
stimulating the growth of local economies. During the review period an amount
of R8 million was transferred to municipalities for local economic development
projects.
After consultations with various stakeholders, a second draft of the
Co-operatives Development Policy and Implementation Plan was finalised.
The unit has been successful in developing the provincial Growth and
Development Strategy. The challenge going forward is to facilitate the
accelerated implementation of the GDS and to ensure its monitoring and
evaluation. Focus will also shift to aligning municipal Growth and Development
Strategies to the provincial GDS.
The unit also played a crucial role in drafting the provincial Broad Based
Black Economic Empowerment (BBBEE) Strategy. The implementation of this
Strategy, which seeks to expand participation in the mainstream economy, will
be closely monitored by this unit.
Governance
The governance unit is tasked with the responsibility of contributing to the
growth of the provincial economy through ensuring that consumers receive
protection from unfair business practices and by regulating the retail and
micro-manufacturing of liquor in the province.
The unit is also responsible for the monitoring and evaluation of
departmental agencies, namely the Gauteng Enterprise Propeller (GEP), Gauteng
Tourism Authority (GTA), Gauteng Film Office (GFO), Gauteng Economic
Development Agency (GEDA), Blue IQ and the Gauteng Gambling Board.
As part of creating awareness among consumers about their rights and
responsibilities, during the review period we launched and handed over to the
Department of Education learner support material on consumer rights and
responsibilities to grade 8 and 9 learners across Gauteng.
This material will enhance the knowledge of learners about consumer related
issues and help create a future generation of smart consumers.
During the review period, the liquor licensing unit collected R11 million in
revenue, exceeding its annual target by R2,5 million. The unit also managed to
reduce turnaround times for inspections and investigations.
Gauteng Enterprise Propeller (GEP)
The Gauteng Enterprise Propeller, our agency that provides business support
to Small, Medium and Micro Enterprises (SMMEs), remains one of our flagship
initiatives aimed at impacting positively on the challenges of the second
economy.
Since inception in 2005, GEP has provided support to over 2 000 SMMEs in all
sectors of the economy and facilitated the creation of well over 3 000 jobs.
During the period under review, GEP spent a total of R5 million on SMME
development and training.
Going forward GEP will intensify its work through, among others, the gearing
in of private sector funding to increase the pool of funds available for the
development of SMMEs and Broad BBBEE companies.
Regional offices of GEP will be rolled out in areas such as Soweto,
Ekangala, Themba and Tsakane.
Gauteng Economic Development Agency (GEDA)
During the review period the GEDA's mandate was revised and expanded to
contribute to the overall growth and development of the provincial economy in a
manner that reduces poverty and unemployment.
As part of its expanded mandate GEDA is working with municipalities on a
variety of projects aimed at supporting local economic development. Furthermore
as part of its investment promotion, GEDA aims to attract foreign and domestic
investment to the value of R1,6 billion into Gauteng. In this regard it is
encouraging to note that during the first quarter of the current financial
year, GEDA had attracted investment to the value of R74 million and facilitated
the creation of over 600 jobs.
Attention will also be paid to building and strengthening multilateral and
sisterhood agreements with special emphasis on the African Continent and the
promotion of South to South relations. The integration of BBBEE and SMME
development into all of GEDA's export and investment promotion activities will
also receive attention.
Gauteng Tourism Authority (GTA)
The key mandate of GTA is the development and marketing of tourism into our
province.
Partly as a result of work done by GTA, the total growth of tourists from
our major source markets grew by an impressive 41% over the review period. Over
R8,2 billion was spent by tourists coming into our province.
Going forward, the agency will be positioning Gauteng as a premier African
tourist destination for business, entertainment, shopping, dining, arts,
culture and heritage as well as sporting events. The agency has set itself a
target of attracting 53% of international arrivals, 34% of the national bed
nights sold, 35% of foreign direct spend and maintaining an average length of
stay of five days.
Blue IQ
Blue IQ represents a decisive intervention by GPG to improve strategic
economic infrastructure so as to contribute towards reducing the cost of doing
business and accelerated economic growth.
Going forward mechanisms will be put in place to allow Blue IQ to raise
funding from its own balance sheet. The agency will also work closely with
municipalities to roll out Information and Communication Technology
infrastructure as part of our efforts to build a smart province.
Gauteng Gambling Board
The Gambling Board remains an important collector of revenue for the
province. The Board has also taken a lead in the promotion of responsible
gambling.
The Board aims to continue collecting 98% of provincial revenue for the
2006/07 financial year. Its target is to collect R400 million in provincial
revenue. It will strengthen efforts aimed at promoting responsible gambling and
will enhance good corporate governance.
Gauteng Film Office (GFO)
GFO will accelerate the process of building internal capacity in order to be
able to meet its targets and strengthen its work of positioning Gauteng as the
premier film making and production destination.
In the current financial year, GFO aims to facilitate R500 million in new
film and television production. This is expected to create 1 800 new jobs.
Special projects
Special projects are designed to stimulate economic growth and development,
to create employment opportunities and promote an enabling environment for
infrastructure investment and service delivery improvements.
Cradle of Humankind World Heritage Site
Since the opening of the Maropeng visitor's centre at the Cradle of
Humankind World Heritage Site, visitor numbers to the area have increased
significantly. The project has also stimulated tourism development and
facilitated the creation of jobs in one of the most depressed parts of our
province.
Going forward, we will pay attention to, among others, the further
development of bulk infrastructure in the area. This we will do in order to
unleash the tourism potential of the area.
Dinokeng
During the 2006/07 financial year we will focus on the establishment of the
start-up area of the Dinokeng Game Reserve. This includes the completion of
construction of boundary fencing and initial stocking of game.
We will also make progress with the procurement of Public Private
Partnerships (PPP) for the development of Cullinan and Roodeplat as tourism
hubs.
Provincial Government Precinct
By the end of the review period, all properties which will be part of this
project had been transferred. Focus will now shift to the issuing of a Request
for Qualification after which bidders will be shortlisted and a final Request
for Proposal drafted. Negotiations will commence after the evaluation is
completed and then a preferred PPP partner will be announced.
The successes we have recorded during the 2005/06 financial year would not
have been possible had it not been for the commitment and dedication of the
staff and senior management within the department.
In this regard, I wish to thank the former Head of Department Ms Bongi
Kunene, who is now with the Presidency. I also wish to thank senior management
and staff within the department.
I trust that in the coming years we will improve on our performance and will
further strengthen our interventions aimed at accelerating the shared growth of
the provincial economy.
A word of gratitude also goes to the Chairs and Members of the Portfolio
Committee on Finance and Economic Affairs for their oversight functions. I also
thank the Premier and Members of the Executive Council for their guidance and
support.
Thank you
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial
Government
4 December 2006
