Mahlangu for the 2007/08 financial year
18 June 2007
Comrade Speaker,
Deputy Speaker,
Honourable Premier,
Members of the Executive Council,
Esteemed Members of the Legislature,
Leaders of political parties,
Mayors and Councillors,
Speakers and Municipal Managers,
Chief Mahlangu and Chief Kekana,
Members of the media,
Ladies and gentlemen
Introduction
We have just passed the half-way mark of the present legislature and its
executive. It is also just over a year since the last local government
elections. As we journey through the second half of our term of office towards
2009, we recommit ourselves to work towards a local government that is:
* transformed, well capacitated, stable and sustainable
* accountable, transparent and promoting greater community participation
* financially viable and sustainable
* ensures access to basic services and information to communities
* representative of women, youth, people with disability and their
interests.
In executing our mandate we have been guided by our constitutional mandate,
the lessons of the past two terms and our insights on the challenges facing
local government. The five year strategic plan has become our roadmap to keep
us focused on building a developmental local government. We are mindful that
the citizens of Gauteng will judge us on how we have achieved these ideals.
I therefore stand before you today to account to the House on the progress
we have made in these endeavours, the challenges we have faced and to outline
the department's plans as we move forward.
Comrade Speaker
Our journey began with the conceptualisation of innovative ideas to address
historical challenges facing municipalities. These challenges related to poor
financial management, mounting debt, billing problems, poor revenue generation,
transformation challenges, lack of capacity, dearth in technical skills,
service delivery backlogs, governance and accountability challenges.
Mid-way through this current term of office we registered good progress in
many areas. However, as we engaged more with local government issues, we
realised that we needed to deepen our understanding of these challenges. Thus,
the five year local government review (2000�2005) we conducted, gave us a clear
picture of the progress made and the extent of municipal challenges that we
have to address in this term of local government.
Government realised the need for a mainstreamed hands-on support aimed at
providing additional technical and institutional support to municipalities. To
give focus to this hands-on support approach, a Local Government Strategic
Agenda was developed to ensure that the three spheres of government focus on a
systematic and co-ordinated local development programme that can be monitored
periodically. The Local Government Strategic Agenda identified three
overarching priorities:
a. mainstreaming hands-on support to local government to improve municipal
governance, performance and accountability
b. addressing the structure and governance arrangements of the State to better
strengthen, support and monitor local government
c. refining and strengthening enforcement measures of the policy, legislative
and fiscal environment for local government.
To achieve these priorities, we agreed that province and local government
should work together guided by the following key principles:
* a shared vision for Gauteng
* alignment and integrated development planning and service delivery
* sound intergovernmental relations
* deepened democracy and accountability.
Comrade Speaker
Allow me to share with the House the progress made regarding the
implementation of municipal support:
Municipal Support Programme
Last year, we utilised R48 million of our budget towards rolling out a
comprehensive municipal support plan, which resulted in a number of support
initiatives. This financial year we have budgeted R24 million to further the
aims of this plan. Additional resources will be made available by the
provincial treasury in this regard.
A partnership was concluded with South African Institute of Chartered
Accountants (SAICA) that led to the deployment of 15 Qualified Accountants in
all municipalities. Of note, has been the emphasis on strengthening internal
controls, accountability protocols, building finance personnel capacity and
establishment of internal audit committees.
These accountants are assisting municipalities to implement protocols that
will ensure the findings by the Auditor-General are adequately addressed. In
supporting municipalities to achieve clean audit reports, I am pleased to
report that there has been considerable effort to assist municipalities to make
tangible progress in this regard. During the period of their accountants'
deployment, emphasis has been to assist municipalities in co-ordinating and
addressing the specific tasks related to meeting the deadlines for delivering
their annual financial statements.
In 2004/05, only two municipalities Lesedi Local Municipality and West Rand
District Municipality received unqualified audit opinions. However, since our
efforts to ensure that municipalities receive a clean audit reports, there has
been a marked improvement in the audit opinions received by municipalities and
their entities over the past two years.
Of the 14 municipalities, 13 submitted their annual financial statements in
time for the 2005/06. Of those already audited, five municipalities received
unqualified audit opinions, Lesedi, Midvaal, Westonaria, Metsweding and West
Rand. It is also noteworthy that the audit report of the City of Johannesburg
has improved from disclaimer to qualified audit opinion. The marked improvement
is an indication that municipalities are on course of achieving clean audit
reports by 2009.
In an endeavour to strengthen financial management in municipalities, we are
working towards ensuring that all municipalities have functional internal audit
units and audit committees in line with the Section 165 and 166 of the
Municipal Finance Management Act. Our partnership with SAICA will make an
important intervention in training about 200 municipal staff in a United
Kingdom (UK) based certificate in Local Government.
Advisory Committee on Municipal Finances and Municipal Finance Summit
The Advisory Committee on Municipal Finances, which started its work last
year, to investigate the state of municipal finances in Gauteng, has tabled its
municipal finance diagnosis report. The findings of the report are around asset
registers, debtors' management, supply chain management, vacancy rates, link
between budgets and integrated plans, financial statements, fiscal dumping,
internal audit units and performance management system.
Emanating from the report, the department together with the provincial
treasury will be hosting a Municipal Finance Summit in July aimed at mobilising
all our partners and municipal leadership to work together to develop a
programme of action for implementing short and medium term strategies. It is
however, important to appreciate that solutions should be viewed holistically,
since tackling only one problem in isolation cannot guarantee improvement in
municipal financial condition. It is also important to note that interventions
of this nature require both managerial and political leadership to succeed.
Revenue Enhancement
In enhancing municipal revenue, the department conducted a metropolitan and
local municipal wide baseline study, utilising a Municipal Analysis Model. The
benefit of the model has contributed successfully in determining the real
outstanding municipal debt standing at R20 billion as well as locating the
exact problems affecting both the billing problems and revenue potential.
This project is being implemented by the department and Gauteng Treasury in
partnership with Project Service Utilities (PSU) and First National Bank. The
ultimate goal is to identify and collect outstanding debt in a phased approach
from the government debtors both national and provincial. Let me point out that
there is political will and commitment to collect municipal debt from
government departments. Therefore, our quick win strategy is to target
government debtors. The Provincial Indigent Policy has been approved by the
Premier's Co-ordinating Forum (PCF) and we will apply its guidelines to assist
in dealing with poor households in the province.
Recouping debt from the Top 100 debtors especially from business, government
departments and residents who are able to pay but decide not to could net
R1,6-billion into the municipalities' revenue in one year. This means that
there could be a cash flow of R130-million a month into municipalities'
coffers.
During the remainder of my term I will endeavour to assist municipalities
with the implementation of the Municipal Property Rates Act (MPRA) that will
assist in improving the revenue base of municipalities significantly. We will
ensure that all municipalities approve new rates and taxes policies before the
end of 2007/08 municipal financial year. Some municipalities will be given
support and guidance.
Comrade Speaker
Our support to municipalities also includes the deployment of engineers.
Working with the South African Institution of Civil Engineering (SAICE) and the
South Africa Black Technical and Allied Careers Organisation (SABTACO), we
deployed 25 senior engineers, 12 graduates and 31 students in municipalities to
unblock the infrastructure bottlenecks. These engineers have assisted with
revenue enhancement, conducted backlog studies and helped to accelerate the
final spending of the 2005/06 Municipal Infrastructure Grant (MIG) funding on
250 projects and developed business plans to ensure that the 2006/07 and
2007/08 Capital and MIG funding is spent timeously.
Following the local government elections, we conducted 150 competency
management assessments for Section 57 posts across all municipalities. All
municipalities with the exception of Kungwini have appointed municipal managers
and the process in underway to fill the remaining vacancy. Kungwini will
conclude the process soon. To ensure sustainability, municipalities should
employ people with technical skills in order to provide skills transfer.
To ensure that municipalities have completed their institutional
transformation processes, we have assisted various municipalities, including
Mogale City and Kungwini with the institutional designs process and Sedibeng
with the development and implementation of the Performance Management
System.
While substantial progress has been made on institutional transformation of
municipalities, we realised that short term interventions, although helpful,
need to be replaced by a programmatic support approach based on the
comprehensive understanding of the gaps and shortfalls in municipalities
institutional matters. Hence, we have conducted the Institutional Diagnostic
Study of all municipalities, which will lead into a programme of institutional
support based on specific identified problem areas per municipality. Challenge
arising from this support relates to: filling of crucial vacancies and building
capacity in municipalities
Disaster Management Centre
In preparing for the 2010 Fifa World Cup and our day-to-day responsibilities
to protect our citizens, I am pleased to announce that the Premier will
officially open the R50-million state of the art Provincial Disaster Management
Centre in August this year located in Midrand. In co-ordinating disaster
related issues in the province, we have and continue to support municipalities
to implement the Disaster Management Act and ensure that there is proper
synergy and co-ordination between the provincial and municipal disaster
management centres.
Community Development Workers (CDWs) Programme
We have so far deployed 425 Community Development Workers in 340 wards
around Gauteng as part of the President's call to bring government closer to
the people and to ensure that we improve the lives of the people for the
better. Their deployment as fulltime civil servants has so far assisted in
bringing government services to the citizens, helped in unblocking service
delivery blockages and deepening democracy and public participation.
Comrade Speaker,
CDWs have managed to bring together services from the three spheres of
government through the establishment of intergovernmental fora. These community
workers are involved in initiatives which are organised and initiated by other
government departments, institutions and agencies to inform and capacitate
communities around different issues, including economy, development, poverty
alleviation, youth and women empowerment etc. In these situations CDWs play a
supporting role and mobilise communities to participate.
The CDWs have been involved in numerous community based projects and income
generating projects at a community level. There are two particular projects in
Joburg ward six where CDWs, through their tireless efforts assisted in
acquiring funding from the American Embassy for two community-based projects.
These are:
* a Home Base care assisting People Living with HIV and AIDS
* a day care centre taking care of 40 children.
CDWs continue to do great work in their respective wards despite the
challenges they are facing. In profiling the work of the CDWs, the department
has taken an initiative to their work in the mainstream media. We will also
ensure that regular and updated information about the CDWs is communicated
through posters, CDW booklets and distributed at government, public exhibitions
as well as the Gauteng Provincial Government (gpg) website and Gauteng
online.
Meeting Service Delivery Targets
In moving towards achieving the National Targets on Basic Service Delivery,
96% of all households on the indigent register in the province receive Free
Basic Water of 6Kl, 100% of households on the indigent register within the
municipal supply zone receive Free Basic Electricity (50KWh) and 22% of
households on the indigent register within the Eskom supply zone receive Free
Basic Electricity (50KWh).
Gauteng has made great strides in reducing the water backlog from 603 000
households in 2003 to 262 000 households in 2006. Also notable is the reduction
of sanitation backlog of 706 000 households in 2003 to 438 000 households in
2006. Gauteng is on course in meeting the 2008 target for basic water supply
and 2010 basic sanitation systems. The challenge is this regard is the
migration of people from other provinces and countries to Gauteng which puts a
serious strain on service delivery and resources.
Water Demand
A joint project between Department of Local Government, Department of Water
Affairs and Forestry and Rand Water Board for the "Water Cycle Management
Study" is in progress in the local municipalities and the three metros. The
objective is to reduce water losses, estimate current and next five year water
demand, reduce level of non payment for water, improve water supply and
operation and maintenance, and assist with capacity building and training. The
water loss project conducted by the Emfuleni Local Municipality has shown a
R1-million saving per month. Gauteng citizens must use water sparingly and make
sure that leakages are attended to immediately.
Electricity Distribution
The Department is also monitoring the implementation of Regional Electricity
Distributors (Reds). Reds (two, four and six) through its involvement in
structures established to support and monitor the implementation of Reds. We
are well aware of the challenges this restructuring is bringing, but working
together we shall overcome.
With regards to the signing of accession agreements, all municipalities with
the exception of Kungwini and Lesedi have signed. The two municipalities will
sign by the end of July 2007. Municipalities will continue to invest in the
electricity infrastructure whiles the Reds are in a process of establishment.
We must all use electricity very efficiently by changing bulbs to those that
are energy efficient.
HIV and AIDS Programme
Comrade Speaker,
In the 2006/07 Budget Speech, I announced that the department would hold an
HIV and AIDS Indaba. Subsequent to this Indaba, the HIV and AIDS strategies
were developed and adopted. Key to the strategies adopted is that community
based approach to combat the HIV and AIDS pandemic has proved to be effective.
However, this approach should be complemented by a multi-sectoral element and
the role of political leadership at local level is key to the success of this
approach.
This year's R12-million HIV and AIDS grant will be used to implement a
number of municipal programmes emanating from the adopted strategies. We will
strengthen the capacity of municipalities' Local AIDS Councils to co-ordinate
and implement the multi-sectoral response to the pandemic and ensure that AIDS
is mainstreamed into the Integrated Development Plans (IDPs) of municipalities.
We want to make sure that programmes aimed at supporting orphans, poor
households affected by the AIDS and People Living with HIV and AIDS are
included in the municipal IDPs. As a result indigent packages of service such
as the Indigent Burial packages will cater for families affected by AIDS.
As we channel funds to various institutions dealing AIDS we need to be
mindful of the capacity of these institutions to manage finances prudently,
manage projects efficiently, monitor and evaluate progress on regular basis.
Hence, part of the HIV and AIDS grant will go towards building the capacity of
non-governmental organisation (NGOs) and intensifying the capacity of the
department manage the HIV and AIDS programme and its impact at municipal
level.
We will assist municipalities in developing internal HIV and AIDS workplace
programmes. This will help towards reduction of infection rates, providing
psycho-social support for those affected and infected in the workplace and
access to support services such as counselling, Employee Assistance Programme
and Voluntary Counselling and Testing (VCT).
Mainstreaming Cross Cutting Issues
Comrade Speaker,
I have already set in motion a programme to develop and empower the women
councillors throughout Gauteng. Together with key stakeholders, this will be
done through the Women Councillor and Mentorship programme, aimed at providing
our councillors with mentors to help them shine in the workplace.
Global City Region (GCR)
As Honourable members are aware, that last year, here in the Legislature, on
the occasion led by the Premier and attended by our Mayors we launched the
Global City Region Perspective. On that occasion as government we committed
ourselves to work with all stakeholders to implement a detailed programme
intended to realise the ideals of the GCR.
We also declared that the GCR Perspective should not be a 'paper tiger,' but
rather a concrete programme of government to improve the way both local
government and provincial government work, collectively and individually.
Responding to this imperative, the Department of Local Government, on behalf
the provincial government, has over the past few months started work on
developing new policies on local government matters, as our contribution
towards realising the objectives of the GCR. These include:
* the Powers and Function study
* the Feasibility Study on the Metropolitan form of Local Government
* establishment of Municipal Public Accounts Committees.
Over the last few years, one area of concern has been and continues to be,
the efficacy of the current allocation of powers and functions between
different spheres of government and within the two-tier system of local
government. There is consensus that the current allocation of powers and
function does not always enhance issues of efficiency, effectiveness, equity
and sustainability across the three spheres of government.
We have embarked on a process of determining the feasibility of moving
towards a metropolitan form of local government in Gauteng. The study will
explore options of how to optimally reconfigure the system of local government
in order to give the Gauteng Region a global competitive edge. This work forms
an integral part of the GCR Roadmap, which as I have already outlined, is a
concrete government programme to realise the objectives set out in the GCR
Perspective.
In terms of the GCR implementations plan, the department has been given the
responsibility to look at governance model for the perspective.
Improving oversight and accountability at local government level
The lessons drawn from the review of the performance of local government in
the previous term highlighted the issue of weak accountability mechanisms at
local government level. There is a sense that despite a consensus that the new
legal, financial management and policy framework, which elevates the importance
of the oversight function and accountability, there remains gaps and
deficiencies in this area. Many of the weaknesses in improving good governance
derive in part from the fact that in local government there is no separation of
powers between the legislative and executive arm of local government. Municipal
council serves as both a legislative and executive institution, despite the
fact that we have established a strong executive system.
This state of affairs has tended to blur lines of accountability and
rendered mechanisms for check and balances ineffective. Working with municipal
leadership, we have agreed to establish Municipal Public Accounts Committees
throughout Gauteng. To this effect, I am happy to report that all fourteen
municipalities have established such committees.
The department is currently finalising plans to provide the first training
and induction programme to assist the skills development of these committees.
In addition, towards the end of the financial year, the department will conduct
an assessment study on how these committees are working and identify
challenges, in order to provide municipalities with appropriate support. Key to
all this work is to define and envisage the form and shape of local government
we require in future a local government that is responsive to people's needs as
outlined in the government's vision of a developmental state.
To this effect the envisaged review of the White Paper on Local Government
would provide all of us with an opportunity to reflect on our experiences in
local government. In this regard, I commit myself that once we are ready to
commence with this review, under the leadership of Minister Mufamadi, we will
ensure that we work and act in partnership with all stakeholders to share in
the vision of a better local government in Gauteng and country broadly.
Local Government research and monitoring
Comrade Speaker,
I am sure you will agree with me that improving governance also means having
an active and participative citizenry in the affairs of government and
particularly local government. We will continue to put more effort in
mechanisms that facilitates and encourage participation in local governance.
These would include the CDW work, community participation in the new governance
arrangements, strengthening the ward committee system, participation in IDPs,
etc.
On this note, I am pleased to report that in the 2006/07 financial year, the
adoption rate of draft IDPs was 100%. The IDP engagement process also helped us
identify national and provincial support actions which are needed to help
enhance the quality of IDPs. This process will enable us to improve our
monitoring and support to municipalities.
I intend to present an effective monitoring and evaluation system to assess
the performance of municipalities in order to improve service delivery and to
promote accountable local government in Gauteng to the Premier's Co-ordinating
Forum (PCF). Local government performance benchmarks will be developed this
year as a basis to evaluate municipal performance.
In order to do this effectively, sound statistical database and empirical
basis about social dynamics within our communities are needed. In this regard,
we will continue to use the Bi-annual Citizens Satisfaction Survey (CSS) to
gauge the views of the citizens of Gauteng about issues of service delivery and
governance. This year we will conduct the second survey. We will work closer
with municipalities and other sectors to ensure that there is ownership of both
the process and outcomes. It is crucial that the findings of the survey inform
our programme of action in local government, so that we are responsive to
issues raised by our citizens.
We would also use the findings to assess whether there has been change in
the perception of our citizens since the last survey in 2005. I also wish to
commend municipalities that are conducting their annual citizen surveys. This
is important in assessing their own standing in communities.
Intergovernmental Relations
To promote alignment between different spheres of government and to have
optimal outputs in terms of service delivery, sound intergovernmental relations
become imperative. I am please to report that all three district municipalities
have established their district intergovernmental forums in terms of Section 24
of the Intergovernmental Relations (IGR) Act.
The challenge going forward is to pay attention to the functionality of
these forums.
Traditional Leaders
With the disestablishment of cross boundary municipalities, two traditional
authorities have been incorporated into Gauteng. I want to give the house
assurance that we are putting programmes in place to give Amakhosi the support
they deserve. I am pleased to report that we are in the process of developing
the Gauteng Traditional and Leadership Bill and framework on Traditional
leaders, in consultation with izinkosi that will regulate the management of
these traditional authorities.
One important area where the Bill is really seeking to be innovative is in
respect of defining the relationship between Local Government structures and
Traditional Leaders and Traditional Communities in the province. This has been
an area of significant tension in many provinces, and it is has not been
clearly addressed in other provincial legislation dealing with Traditional
Leadership and Governance. We are waiting for the Minister of Provincial and
Local Government to give us guidance on the remuneration of the herdsman as per
the recent government gazette and accordingly we will comply with the
decision.
Conclusion
Comrade Speaker,
In conclusion, I wish to emphasise that all our efforts are geared towards
making the lives of our people better. Whilst we concentrate on the future of
local government, we need not lose sight of the fact that all these endeavours
must improve service delivery and enhance good governance.
Thus, all this work has to culminate into an effective governance model and
arrangements in Gauteng. We will count on this House, our partners and citizens
to walk this journey with us as we move forward into the future. I should once
again emphasise that if we are to succeed in realising our vision, we would
have to improve in how we work, it cannot be business as usual.
Allow me to thank the Premier Mbhazima Shilowa for his leadership and
unwavering support, Members of the Executive Council for their support, and the
Portfolio Committee of Local Government under the guidance and stewardship of
Ms Refiloe Letwaba for their positive engagement with us.
Let me thank the Head of Department (HOD) Oupa Seabi for his hard work and
ability to steer the department in the right direction. Senior management, the
departmental staff for ensuring that local government works better. Thank the
staff in my office for going beyond the call of duty and lastly, my family for
their unconditional love and support.
"Indeed a better Gauteng is in the making." This is evident in the survey
released by the Institute of South African Race Relations indicating that the
lives of people of Gauteng have improved significantly over the years. Let us
not be complacent, the journey is still long, rewarding though challenging.
I thank you.
Issued by: Department of Local Government, Gauteng Provincial
Government
18 June 2007
