Budget Vote speech Cooperative Governance and Traditional Affairs for the 2022-2023 financial year presented by MEC Dukwana Member of the Executive Council for Cooperative Governance, Traditional Affairs and Human Settlements, Fourth Raadsaal
Honourable Speaker of the Legislature Honourable Premier
Fellow Members of the Executive Council Members of the Legislature
Marena le Bafumahadi – dikgosana and dikgosatsana
Executive Mayors, Honourable Speakers, Chief Whips and Councillors Director General of the Province
Heads of Departments
Veterans and Stalwarts of our Liberation Struggle Stakeholders in the Human Settlements Value Chain Citizens of the Free State
Ladies and Gentlemen
Madame Speaker,
Allow me to go back a little over five months ago and, recall what President Ramaphosa said:
“We face a moment in history when we must choose between the path of division, conflict, destruction, inequality and exclusion, path of unity, hard work, development, inclusivity and shared prosperity. We choose the path of unity, hard work, development and, shared prosperity.”
With these honest and visionary words, President Ramaphosa set the scene for men and women of substance to commit themselves to serving the people wholeheartedly and waste NO time in turning municipalities around and inevitably direct them to nothing short of
provisioning of services to communities in a reliable and sustainable manner.
The President sounded the call to all public servants, to redouble their efforts in guaranteeing the well-being of all citizens of our country for Madame Speaker, this is the yardstick by which our people will judge our competence, reliability and dependence.
That tone of frankness and honesty on the part of the President, would be in total agreement with what the revolutionary-Amilcar Cabral- said:
“Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. And claim no easy victories...”
Madame Speaker
COGTA’s mandate of oversight is very dynamic and complex in that, while local government is a sphere of government in its own right, we are constitutionally and legally mandated to ensure that local government’s own constitutional and legal mandate of providing services to communities on a sustainable basis, is strictly adhered to by local government itself.
It is, therefore, understandable that communities and various stakeholders will be frustrated with what seems like a slow and indifferent response by COGTA, pertaining to service delivery challenges in communities.
For this reason, we have a responsibility to marshal all of our resources – both human and material – in ensuring that we work creatively, energetically and tirelessly, to bring together joint efforts of these spheres of government. In particular, with respect to the work that unfolds in municipalities. To this end, as a sphere that brings communities closer to government, the importance of local government cannot be overemphasized. Thus, a sustained local economic development and delivery of quality services, is a necessary ingredient for the fundamental socio-economic transformation of our country.
In this regard, local government has the capacity to produce a confluence of possibilities to push back the frontiers of unemployment, poverty and inequality. Not least, the task of creating suitable conditions for domestic and foreign direct investment.
We have a responsibility to build capacity across all our municipalities, to prevent a surge in service delivery protests such as what we experience in this province and deal with the root cause thereof.
Madame Speaker
As shall be demonstrated below, our municipalities are facing serious challenges which threaten the future of this province. Whereas some challenges are structural and cannot be attributed to a single event, the bulk of challenges faced by municipalities were caused by the years of state capture whose melting pot was in this province.
There is a sense in which the shortage of skills in municipalities, is one of the primary reasons for a poor service delivery record. The past practice of appointing people on the basis of political convenience and private social relations is one of the key causes of this dissatisfaction amongst our communities.
In addition, poor spending and management of conditional grants is another area of concern. Often these grants are used for purposes, other than the intended ones and this creates a huge backlog in bulk services such as water, infrastructure, road maintenance, sanitation, electricity, etc.
Furthermore, there are inadequacies in the procurement processes across municipalities. There appears to be a trend towards malicious compliance. For instance, some officials use the procurement rubric to simply tick procedural boxes and not necessarily to extract value for our communities. A bottle of water which you buy for R10 (ten rand) at the stores is sold for R100 (hundred rand) to government.
Madame Speaker, faced with this threat to the edifice of our ethics; we must commit without fail, to confronting malfeasance and corruption in the value chain of our local government system.
At a structural level, the following challenges are common across all municipalities in our province albeit, in varying degrees:
- A collapse in prudent control measures as revealed in successive reports by the Auditor General,
- The majority of municipalities receive qualified or disclaimer audits,
- Severe liquidity problems due to billing challenges,
- Inability to pay for bulk services to Eskom and water boards,
- Aging and collapsing infrastructure,
- Ballooning municipal salary (wage) bills,
In a sense, the challenges faced by our municipalities in the Free State can be pigeon-holed into three categories:
I. Revenue Challenges;
II. Infrastructure challenges and
III. Operational challenges.
Revenue challenges
The causes of revenue challenges for most municipalities typically fall into the following 6 areas:
- Strategic misalignment of all departments within the municipalities;
- Metering underperformance and incompleteness of billing;
- Credit control and Debt Collection are not executed effectively;
- Limited efficient and effective billing and query resolution;
- Technology and Data Challenges and
- Revenue Protection gaps.
As a department, we need to find a creative and more coordinated way of helping municipalities to address revenue challenges. One of the ways in which this could be done is by cranking up our Municipal Financial Monitoring Unit within COGTA and municipalities on their part must interact with this unit proactively and dynamically.
Thus this unit, must do everything in its power to ensure that it strives for the following:
- Undertake a detailed analysis of revenue issues in each municipality and understanding the gaps;
- Define improvement plans for each municipality and
- Provide strategic support for the implementation of strategic initiatives in each municipality.
Infrastructure challenges
The department needs to identify municipalities in need of urgent intervention and assist them in ensuring that, all funds allocated from conditional grants are used for purposes for which they were intended.
Operational challenges
The operational challenges that beset municipalities result from:
- Limited leadership capacity and performance management
- Inefficient processes
- Human resource challenges
- Ineffective organizational architecture
The totality of the challenges we have referred to above, impacts negatively on the ability of our municipalities to deliver quality services and attract the much-needed investment for local economic development.
Madame Speaker
In terms of Section 153 (a) of the Constitution, the local sphere of government has a responsibility to “structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community”.
Madame Speaker, in certain quarters, our will to purge municipalities of all that goes against the grain of good local governance, may be viewed as micro-managerial at best and, interfering in the affairs of municipalities at worst.
However, there comes a time when in the overall interests of citizens of the Free State in various municipalities, COGTA must intercede on their behalf, to enhance the possibility of citizens receiving a better quality of services, promptly and sustainably.
In this regard, our intervention in certain particular municipalities by means of Section 139 (5), (a) and (c) or even Section 139 (7), must be seen as a noble effort to reposition municipalities on the path of financial recovery and sustainability.
In this context Madame Speaker, we joined this department at a time when my predecessor- MEC Nxangisa- had embarked on a deliberate process of cleansing our municipalities of the rot that afflicted them. This was done as a demonstration of our commitment as provincial government, to strengthen the local sphere of government for improved quality of services.
We extend a word of gratitude to MEC Nxangisa for a sterling job done and, commit to build on the good work that he started.
The following municipalities were placed under administration; in particular, Section 139 (1) (b) of the Constitution:
- Masilonyana Municipality,
- Mafube Municipality and,
- Maluti a Phofung Municipality.
With respect to Mafube Municipality, the Free State Executive Council revoked Section 139 (1) (b) intervention in December 2020 and, prescribed Section 154 (1) support until 2021 local government elections. This intervention has since ceased. The interventions in relation to Masilonyana and Maluti a Phofung have equally been revoked.
Metsimaholo Municipality was placed under Section 139 (1) (b) in February 2018 by the Free State Provincial Executive Council. However, the intervention was set aside by the National Council of Provinces on the grounds that, the decision was not justified. As a consequence, Section 154 (1) support was prescribed and remains operational.
The Mangaung Metropolitan Municipality was placed under Section 139 (5) (a) & (c) by the Free State Executive Council in February 2020, following a voluntary Financial Recovery Plan under which it had assumed in July 2018. This was a result of inability on its part, to meet its financial obligations. The administration is still ongoing and the challenges in the municipality seem to be escalating since the 2021 local government elections.
Furthermore, Section 106 of Municipal Systems Act was invoked with respect to the following municipalities:
- Matjhabeng Local Municipality;
- Letsemeng Local Municipality and,
- Kopanong Local Municipality.
With respect to this intervention, reports were tabled before the respective Councils and recommendations were made in this regard. We will closely monitor their prognosis and ensure that, these recommendations are implemented.
Sceptics may well argue that, based on the profound challenges faced by municipalities, a fulfilment of this constitutional mandate is a pipe dream. However, we remain convinced that the institutional memory in the local sphere of government is not entirely lost and that there exists still, the possibility for a blue ocean strategy whereby novel assumptions can be made, to ideate and innovate.
To give concrete meaning to this appreciation, we commit ourselves to partnering with municipalities and civil society. This way, we will exhaust every available avenue – in supporting and strengthening the capacity of each municipality to manage its own affairs, exercise its powers and perform its functions, since it is line with our constitutional mandate.
In this regard, we have developed a schedule – together with the Department of Treasury – in terms of which we will embark on municipal roadshows during this financial year. The purpose of these roadshows is to create and promote a healthy culture of accountability, responsiveness, competence, service delivery, economic development and fundamental change more broadly.
This will be followed by a process of cooperative governance and intergovernmental relations regime between COGTA and municipalities – underpinned primarily by our resolve to provide induction and training to 102 (hundred and two) Ward Committees that have been elected so far, out of the total of 317 (three hundred and seventeen).
Regrettably, two of the largest municipalities in the province i.e. Mangaung and Maluti-a-Phofung) are yet to elect Ward Committees. This also includes the Kopanong Local Municipality. These municipalities will be assisted to establish Ward Committees too. This is necessary to extend the democratic and accountability dividend, to entire communities of the Free State.
As a matter of necessity, Ward Committees entrench the will of the people and deepen cross-institutional efforts to narrow the trust gap between government and the people; to free the potential of every citizen and to augment participatory democracy.
Through experience, we appreciate that it is only when citizens understand the inherent weaknesses and limitations of their government – that they tend to be more patient and volunteer their energies to help resolve whatever challenges might obtain.
Madame Speaker,
Technology in this age of 4th Industrial Revolution (4IR), is a great enabler and equaliser on the democratic highway. Accordingly, we call on our municipalities to fully embrace the GovChat platform. This is a practical way to receive feedback from communities and act decisively in addressing their grievances.
The time for e-government is now and there is no turning back.
We urge municipalities to promptly and honestly respond to petitions and demonstrations embarked upon by communities. This is what we need to narrow the social distance between government and the people. We need to bridge the trust gap that exists between us and communities.
We look forward to reinvigorating the District Coordinating Forums and their governing structures, particularly MECLOGA. At all material times, these structures must never be a preserve of a few individuals in the form of experts and municipal officials. Ordinary people must be exposed to the nature and extent of the work of these structures, and appreciate the impact they have on their daily lives.
In keeping with our commitment to pursue unity, hard work, development, inclusivity and shared prosperity; we place a great premium on the interrelated nature of the axis of cooperation and intergovernmental relations with municipalities.
This finds expression in the endeavour of municipal performance and monitoring. In this regard, the following milestones were recorded:
1. Upon the promulgation of Staff Regulations for employees in the municipal sector by the Minister of COGTA in September 2021, the department carried out a province-wide roadshow to popularise these regulations. A follow up will be made to assess the state of readiness of municipalities with regards to compliance. This is critical to ensuring that, government is the main driver of the ethos of a capable, ethical, democratic and developmental state.
2. Furthermore, the department was able to provide support to 20 (twenty) municipalities in relation to compliance with provisions of the Municipal Systems Act (MSA) and the Annual Performance Management Reports (APMRs), with respect to the appointment and employment conditions of senior managers in the municipal sector;
3. Monitoring and evaluation of municipalities and their compliance with the filling of the top 4 (four) critical posts in the municipality;
4. Implementation of performance management systems and the signing of employment contracts and performance agreements within prescribed periods, in line with the regulatory framework.
5. As the employment contracts of most municipal managers and other layers of senior management come to an end, the department has advised municipalities to waste no time in filling those posts.
We are also determined to ensure that the Provincial Performance Management Forum is held in the forthcoming Financial Year (FY) and that it sits biannually to enable municipalities to observe and dictate the Performance Management System.
Madame Speaker
The drafters of our Constitution conceived the notion of our local government system on the basis of the wall-to-wall governance philosophy; in terms of which the institution and role of traditional leadership is accorded a special place. Chapter 12 (twelve) of our Constitution provides for the role of traditional leadership.
Accordingly, the department recognises the pivotal role that the system of traditional leadership plays in engendering and promoting the development of the indigenous knowledge systems. The institution of traditional leadership is a strategic partner in preserving the cultures and languages of different ethnic groups. It imbues our people with a deep sense of belonging and common South African nationhood.
In order to provide support to the institution of traditional leadership, the department will facilitate the reconstitution of the Local Houses of Traditional Leadership and the House of Khoi-San Leadership in Thabo Mofutsanyana and Mangaung respectively. Their terms need to be renewed, given their expiry on 31 May, 2022.
We are grateful to the men and women who work tirelessly – in their various capacities – to bring the work and matters that affect these respective houses to the attention of government.
Reconstitution of Traditional Councils
The department has determined that 13 (thirteen) Traditional Councils in our province will have to be reconstituted by 31 March, 2023. This is in accordance with the provisions of the Traditional and Khoi-San Leadership Act, 3 of 2019. A budget will be set aside by the department towards realizing this particular project.
In line with the preservation and promotion of our indigenous cultures, the Customary Initiation Act 2 of 2021 provides for the establishment of the Provincial Initiation Coordinating Committee (PICC) whose task it is, to exercise oversight over all initiation schools.
In pursuit of the terms of reference of the PICC, the Premier has appointed representatives of various entities and institutions as follows:
(a) Four members of the Traditional House of Traditional Leaders, viz:
I. Morena Neo Mopeli;
II. Morena Qejwayo Moloi;
III. Kgosi Nkgahle Tsotetsi and,
IV. Kgosatsana Puleng Moloi.
(b) (I) Ms Sibongile Mathibela and,
(II) Ms Madadasana [Organised Local Govermnet]
(c) (I) Mr Modisaotsile Johannes Mokgatle and,
(II) Mr Sipho Sidney [Emergency Services]
(d) Mr Hobi Mofokeng [Traditional Health Practitioners of South Africa (FS)] and,
(e) (I) Mr Simon Thamsanqa Mateza and,
(II) Mr Paulus Motsamai Mokoena [COGTA]
The PICC is expected to hit the ground running in terms of anticipating the initiations season, in order to acquaint different role players with processes, procedures and other prescripts during initiation.
In this regard, the department will establish a Technical Team that will assist the PICC, which will comprise the following representatives:
a) Provincial Department for Education;
b) Provincial Department for Health;
c) Provincial Department for Arts and Culture;
d) Provincial Department for Social Development;
e) Provincial Department for Safety and Security
f) Provincial Department for the relevant Metro, District and Local Municipalities;
g) Emergency Services within a particular area and,
h) The South African Police Service.
Madame Speaker
Based on the reflection above, it is crystal clear that customary laws that regulate the institution of traditional leadership and indigenous knowledge systems broadly, are formally recognised by our government.
As a department, we are acutely aware of the distortion and mutilation of our cultural belief systems and practices by centuries of colonialism and apartheid – particularly during the systemic and systematic annihilation of African Kingdoms between 1779 and 1879.
The wanton psycho-social destruction caused by colonialism on the African way of being and self-awareness still lives with us to this day. The wounds are deep, invisible and yet so palpable.
Without our cultures, our uBuntu is on shaky ground.
Kahoo, re leboha Marena le bohle ba etsang ka matla, ho sireletsa le ho ntlafatsa setso sa batho ba batsho.
Madame Speaker
President Ramaphosa has on many occasions, bemoaned the tedious and bureaucratic processes which make it impossible for our people to receive government services on time. This ranges from applying for a fund or grant from Development Finance Institutions (DFIs) to start a business or, fulfil any other mandatory regulatory requirements for compliance.
To respond to this problem, our government has resolved to roll out the One Plan; One Budget campaign. The objective of the campaign is to eradicate the silo mentality and align government efforts and, make service delivery faster, more and better.
In this regard, the department will work together with municipalities and sister departments – through the District Development Model – to drive local economic development including in particular, townships and villages. This shall be done in consultation with all relevant stakeholders.
The institution of traditional leadership will also have a meaningful role to play in this regard.
Madame Speaker, in keeping with the provisions of the Traditional Leadership and Governance Framework Act, the Local House of Traditional Leaders may:
a) Advise the District Municipality on:
(I) Matters pertaining to customary law, customs, traditional leadership and the traditional community;
(II) The development of planning frameworks that impact on traditional communities;
b) Participate in local programmes that have the development of rural communities as an object;
c) Participate in local initiatives that are aimed at monitoring, reviewing or evaluating government programmes in rural communities.
Madame Speaker
To give effect to the spirit of the District Development Model and the framework of the Traditional and Khoi-San Leadership Act 3 of 2019, we urge the Provincial Legislature – particularly the relevant Portfolio Committee – to expedite the provincial version of the above legislation.
Ho Marena le Dikgosi tsa rona, re re: kgomo tseo le manamane a tsona! Re tla emela ka tebello e kgolo, setswantsho sena sa Molao. Bana ba mmala wa Sebilo ba re ‘kgomomogala, tshwarelela, esere o utlwa sebodu, wa kgaokga’.
The Khoi & San - our ancestors- in urging us to unite even as we remain diverse exhort us: !KE E:/XARRA //KE
Madame Speaker
When it rains, you do not complain that it is raining. Instead, you organise yourself an umbrella or wear a rain suit in the alternative. Equally when fire erupts, you rush to put it out before it destroys everything in its way. One of the realities that we face today is the ominous threat of global warming and climate change.
Climate change affects the poor more and, in the context of our country which ranks number one among 164 (hundred and sixty-four) countries in the world in terms of lines of inequality – the occurrence of disasters is ever so imminent. Climate change undoubtedly exacerbates inequality and consigns the poor further, to the margins of society. It creates food insecurity and wreaks a plethora of unmitigated distress and suffering.
For us to intervene timeously and decisively when disaster occurs, we need a Provincial Disaster Management Centre that is fit for purpose and has workers who are able to rise to the occasion when needed.
Our Provincial Disaster Management Centre has broken windows and leaking roofs; toilets are malfunctioning and is infested with rodents. Workers are not placed in accordance with policy prescripts and the Provincial Fire Service Unit is non-existent.
We need to urgently ensure that the Disaster and Emergency Management Units exist. We also need to establish the Fire and Rescue Services with capacity to mitigate and contain disasters.
Budget Allocation
Madame Speaker, below is a breakdown of how our budget will be utilised in the current financial year. A more detailed breakdown is accordingly annexed to this presentation:
Programme 1
A total amount of R162 726 000 (38%) has been earmarked for Programme One. These funds will be utilized to build administrative capacity in the office of the Head of Department (HoD), administration and corporate services; to enable these offices to deal with challenges in municipalities.
Programme 2
We have allocated R128 024 000 (30%) to Programme Two. This is an important programme which is entrusted with the responsibility to monitor and provide advice on the appointment of senior managers in Municipalities as well as their performance matrix. The envisaged Memorandum of Understanding (MoU) with Provincial Treasury will create an atmosphere for our MFMA unit, to be able to focus on non-financial aspects hereof, such as the Municipal Property Rates Act.
The intention is to ensure that there is correct valuation of properties as well as billing for rates and taxes. We will ensure that correct property classification is done by municipalities so that schools, churches and government buildings, are not charged same rates as business properties. Proper billing formula is the right recipe for economic development.
As indicated above, the Provincial Disaster Management Centre needs to be beefed up to become the proper fusion centre through the Private Sector Participation Model (PSP). This will ensure that the province is fully capacitated to deal with any form of disaster, especially floods and veld fires that mostly affect our farmers – to protect food security and our communities in general.
Programme 3
We have set aside R72 353 000 (17%) to Programme Three and, the budget will be dedicated towards providing support on the implementation of the Spatial Planning and Land Use Management Act, by empowering Municipal Planning Tribunals.
This is necessary to fast-track development in municipal land parcels; transform apartheid era spatial patterns and, solicit development for economic growth, which will ultimately create jobs for our people.
This very programme will intensely monitor infrastructure planning, implementation and spending on the Municipal Infrastructure Grant (MIG), Water Services Improvement Grant (WSIG), Regional Bulk Infrastructure Grant (RBIG), Integrated National Electrification Programme (INEP) and the Energy Efficiency Demand Site Management (EEDM).
This ties in with our mandate of ensuring that, these grants are spent well and for the purposes for which they were intended, to forestall grants being used to pay for operational costs. This will further build more capacity in municipalities, to allow them to purge indigent registers of undeserving cases and, enhance and sustain revenue collection.
Programme 4
An amount of R51 449 000 (12%) has been allocated to Traditional Institutional Development, to ensure that we are able to effectively deal with the mandate of Traditional Leadership and support staff.
We will continue to lobby for more resources, to overcome human resources challenges in this unit. This unit is tasked with the mammoth task of addressing challenges which affect rural and traditional communities – including the establishment of various Local Houses.
The new Traditional Khoisan Leadership Act, will further put pressure on the unit, including the traditional initiations obligations.
Programme 5
A budget of R 12 695 000 (3%) has been allocation to the House of Traditional Leaders. Madame Speaker, it is extremely disappointing that our Traditional Leaders have the smallest chunk of the budget despite the enormous responsibilities they shoulder to foster social cohesion, nation building and a common destiny.
In addition, they have the responsibility to deal with various ills and developmental issues that affect various communities.
We will endeavor to advance their plight through the District Development Model, to mobilise the private sector to bring more investment opportunities to areas of their jurisdiction for economic development and job creation – particularly in the context of reducing the brain drain in rural communities and the attendant urban sprawl.
Madame Speaker
We derive enormous joy and pride in joining hands with our municipalities to address service delivery challenges. We have no difficulty admitting that service delivery in its current form, is extremely poor. Potholes adorn most parts of our province, rubbish pile-ups overflow and sewer runs through every community.
However, there are bold efforts in many municipalities to break from the downward spiral and turn the situation around. There are courageous men and women who wake up every day, to re-imagine their municipalities and strive to seek and find the resolve and energy to improve the quality of service delivery to the people.
Our hope that tomorrow shall be better is inspired by such people. It is precisely for this reason that we are encouraged to work extraordinarily harder, to turn the situation around as a department.
Those that obstruct our efforts to intercede on behalf of citizens of our province have no future in our municipalities. Anybody who stands diametrically opposed to the sound of change will have to step aside. We owe it to hundreds of thousands of citizens of the Free State, to do nothing to detract from what they have mandated us to do- to constantly strive to secure their well-being.
In conclusion, I wish to express gratitude to the African National Congress (ANC) and its membership at whose behest we serve in government. Family and friends who now have to contend with my perpetual absence and unavailability. Your patience with me, is appreciated.
With your permission Madame Speaker, I wish to commend this budget Vote to the Legislature for adoption.
Thank You!
For tables see PDF version of speech
