lekgotla
30 July 2006
BACKGROUND NOTES ON THE 2006 MID-YEAR CABINET
LEKGOTLA
The mid-year Cabinet lekgotla took place from to 26 â 28 July 2006. It was
attended by Ministers, Deputy Ministers, Provincial Premiers, Directors-General
and representatives of the South African Local Government Association.
The lekgotla reviewed progress in implementing government's Programme of
Action â in order to identify and address bottlenecks that hamper service
delivery â and reflected on strategic issues arising out of the detailed
reports of clusters. The deliberations and decisions of the lekgotla will
inform the development of government's medium term strategic and expenditure
frameworks.
This document highlights the key themes discussed by the lekgotla. More
detailed briefings will be provided by the Ministers who chair the various
clusters over the next fortnight.
IMPROVING THE CAPACITY OF THE STATE
The lekgotla reviewed progress in strengthening the capacity of the state to
implement programmes and provide services, and agreed on further measures to
deal with the challenges.
Government systems for planning and implementation
A number of initiatives have been implemented to improve planning and
implementation in all three spheres of government.
These include improvement of integrated planning for better service
delivery. The Integrated Development Plans (IDPs) processes are increasingly
playing a major role in improving co-ordination and intergovernmental planning
at the level of metros and districts. By July 2006, 92% of municipalities had
adopted IDPs. While sector alignment has improved, information and data for
planning remains a challenge. The next phase of IDP engagements will be managed
through provincial and district Intergovernmental Fora.
The implementation of the National Health Information System (NHIS) will
improve the management of patient data in order to enhance patient management.
Currently only 20% of the 440 hospitals and only 5% of clinics have
computerised health systems. A tender has already been issued for the NHIS. A
service provider should be appointed in the coming months and an architectural
blue print should be available by November 2006.
The Policy Unit in the Presidency (PCAS), National Treasury and the
Department of Provincial and Local Government (DPLG) were mandated by the
lekgotla to prepare a proposal for the establishment of an institutional base
in government that would drive and co-ordinate long-term economic development
planning and co-ordination.
The lekgotla discussed the management challenges in the education system.
One of the weaknesses identified was the need to clarify the roles and
responsibilities of school principals, district and circuit managers. Policy
standards and a national management framework will be designed. A National
Education Evaluation and Development Unit will be established to serve as a
national inspectorate to monitor and evaluate the performance of those involved
in the education process.
Support for local government
Support to local government emerged as a key area of focus to improve
service delivery to communities. The lekgotla approved an action plan to
strengthen what has already been done.
All new mayors and new councillors, especially in those municipalities that
form part of Project Consolidate, are currently undergoing targeted induction,
leadership training and capacity building in a programme that will be concluded
in June 2007.
Special attention will be given to supporting municipalities to expedite the
process of filling vacant posts.
Those municipalities that have been identified by the Auditor-General as
having critical municipal debt and billing challenges will receive coordinated
support from the DPLG, National Treasury and provincial governments.
The Department of Public Service and Administration (DPSA), National
Intelligence Agency (NIA), DPLG and South African Police Service (SAPS) will
urgently finalise proposals on how to enlist the support of government
investigating agencies in implementing the Local Government Anti Corruption
Strategy.
The programme to provide special hands-on support to municipalities will
continue. Specialists will be deployed to provincial departments of local
government and all districts that include Project Consolidate local
municipalities.
The lekgotla reflected on a number of regulations that are creating
bottlenecks in the public service. Areas have been identified for immediate
intervention.
With regard to Environmental Impact Assessments (EIAs), the new regulations
which came in to effect in July will streamline management processes and
expedite decision making. However, a study has revealed that provinces
currently have insufficient capacity to manage the EIAs. The lekgotla endorsed
a proposal for the appointment of consultants and contract workers to finalise
outstanding EIA applications.
The lekgotla discussed the state of the economy in detail against the
backdrop of domestic and global trends.
The following domestic trends were noted:
- An improvement in investor and consumer confidence
- Improvement in fixed investment, with gross fixed capital formation now
estimated at 17,8% of GDP - Improvement in rates of economic growth
- Improvement in revenue collection
- Improvement in the prognosis of medium-term economic growth and
socio-political trends on the continent as a whole and - Optimism among South Africans.
While some aspects of global trends may have a negative impact on emerging
markets around the world, including South Africa, overall global, continental
and domestic developments confirm the Age of Hope the President referred to in
his State of the Nation Address in February 2006.
The meeting reaffirmed that in this environment the challenges for
government are firstly, to take advantage of this environment to speed up
implementation of agreed programmes and secondly, to identify new and bolder
steps that we need to take in order to achieve better results faster.
The lekgotla reviewed the implementation of AsgiSA (the Accelerated and
Shared Growth Initiative for South Africa) as an initiative to overcome the
binding constraints to higher ranges of shared economic growth. Since the
development and implementation of Accelerated and Shared Growth Initiative for
South Africa (AsgiSA) began after the July 2005 Cabinet lekgotla, the
initiative has succeeded in capturing the public imagination. The lekgotla gave
attention to the six areas of intervention within AsgiSA.
The posture of government in respect of macroeconomic balances was
reaffirmed.
Given the performance of the economy during the 2005/06 financial year, the
question had been posed whether we should not aim for even higher rates of
growth than those envisaged in AsgiSA i.e. 4.5% between 2005 and 2009 and at
least 6% between 2010 and 2014.
Among the major challenges in this regard is the current reality that South
Africa faces increasing Aggregate Demand, yet with insufficient domestic
production capacity, which negatively impacts the current account balance.
Further, growth in private sector credit and household debt, volatility in
international markets and the currency and global energy insecurity do threaten
macroeconomic balances.
The lekgotla noted that economic modelling does show that the economy can
achieve much higher rates, but that this would be conditional on improvements
in Gross Fixed Capital Formation, especially in productive activity. Higher
rates of investment in turn would be dependent on responses of the private
sector to government infrastructure initiatives, which in part are influenced
by the sector's assessment of risk and return, and levels of national savings,
interest rates, and inflation. In other words, higher rates of growth depend on
success in implementing all the interventions identified in AsgiSA.
As such, it was agreed that the government should implement AsgiSA with
determination: opportunities that derive from this should then be taken
advantage of to move to an even higher trajectory.
Major implementation concerns in infrastructure â capacity of government and
State owned enterprises to plan and spend, skills shortages, bottlenecks in
supplies, environmental regulatory burdens and land use management â are being
addressed in the process of implementation.
The lekgotla noted that the investment plans of the State Owned Enterprises
have been firmed up; including a revised energy investment plan from Eskom and
a logistics plan from the Department of Transport, and that implementation on
these plans had started.
With regard to information and communications technolologies (ICTs), it was
agreed that an interdepartmental committee would be established to ensure that
the financial arrangements for the roll-out of Sentech's wireless broadband
network, and the financial framework for the terrestrial broadband network are
finalised, and to report to the January lekgotla.
Issues identified as requiring attention in the medium-term included.
- The completion of over-arching strategies with regard to passenger
transport; faster action on telecommunications infrastructure and regulatory
capacity; and detailed plans to meet the targets for water and sanitation. - Implementation of new plans to speed up construction of new electricity
generation and transmission capacity, given the possibility of higher rates of
growth.
With regard to the implementation of the sector investment strategies, the
meeting noted progress with regard to the tourism strategy (including Cabinet
approval of an airlift strategy) and work in the biofuels sector.
Urgent steps will be taken to complete the package of incentives and skills
support measures to avoid delays in the implementation of the BPO strategy and
business plans.
It was agreed that the industrial strategy framework which is being
developed and the sector strategies should give sufficient emphasis to
industries that can compete in export markets and help alleviate current
account challenges.
The following medium-term issues were identified;
- There is need for bold action in relation to the immediate priority sector
strategies in AsgiSA, i.e., BPO and tourism. - Urgent completion of other sector strategies should be followed up by
concrete discussions with major private sector players in each sector, to
encourage bolder investment decisions on their part. Constraints that they
identify should be addressed concretely as they arise.
It was noted that detailed implementation plans are in place to address
issues of skills and education, including through Joint Initiative for Priority
Skills Acquisition (JIPSA).
Areas of progress noted include recapitalisation of further education and
training (FET) institutions and development of the new syllabus; and the
implementation of the QUIDS UP school support programme. With regard to
acquisition of skills, a new scarce skills immigration quota list is to be
completed by August; while a database of skilled South Africans who are retired
or abroad has been set up.
Two medium-term strategic issues were identified as in need of
attention:
- The contribution of higher education institutions to the implementation of
AsgiSA needs to be attended to strategically, beyond the practical issues being
canvassed in JIPSA. - There is need further to strengthen the integration of the work of
education and labour departments.
The legkotla agreed on medium-term interventions that are required in the
Second Economy:
- The Expanded Public Works Programme (EPWP) will be further massified by
integrating EPWP-approaches into funded infrastructure projects, scaling up of
provincial access roads and environmental sector projects over the medium term.
The community and home-based care and early childhood development programmes
will be expanded. - The capacity and reach of micro-finance and micro-business support
institutions will be improved. This should be coupled with completion of the
work aimed at easing the regulatory environment facing the small business
sector.
The lekgotla discussed implications of the findings of the Macro-social
Report (A nation in the making). The report concludes that our society
is advancing in terms of both hard (socio-economic) and soft (identify and
social cohesion) issues, but that there are still many challenges as we moves
towards a better life for all.
The January lekgotla approved a macro-social development strategic framework
which proposed two key pillars to guide government's interventions: improving
material and social conditions of the poorest citizens and strengthening social
cohesion. The July lekgotla discussion focused on both aspects, as part of
broad reflections that will inform detailed discussion at the January
lekgotla.
Against the background of the findings of the Macro-social report, the
lekgotla approved a proposal for the development of a strategy, working with
civil society, to strengthen social cohesion among South Africans. It will
focus on developing young people through community service and education,
positive community values, enhancing solidarity and enhancing social networks.
National campaigns will be launched to mobilise young people and promote nation
building.
Whilst there are many ways of promoting national identity, pride and social
cohesion, ultimately it is concrete action in pursuit of common objectives that
will strengthen the national sense of belonging. In this regard efforts to
build united action around common goals should be pursued around AsgiSA and the
2010 FIFA World Cup.
Provision of housing and basic services
The lekgotla discussed the impact of population growth, the trend towards
smaller households, urbanisation and migration on the demand for housing. The
mushrooming of informal settlements in many parts of our country was presenting
service delivery challenges to municipalities and provinces.
Legkotla endorsed the establishment of a Special Purpose Vehicle to
identify, acquire, hold and transfer well located land and landed properties on
behalf of the Department of Housing, to fast track delivery.
Two instruments are being developed that will assist the different spheres
of government to achieve better planning, alignment, coordination and shared
prioritisation of delivery of housing and other services. These are the
National Spatial Development Perspective and the Housing and Human Settlements
Delivery Implementation Protocol.
The lekgotla noted progress with regard to the provision of basic services.
The eradication of the bucket system in formal areas is proceeding and is to be
accelerated to ensure completion by the target date of December 2007. By the
end of June 2006, the backlog had been reduced to 165 912 and a further 63 000
buckets will be removed by December 2006. This work will play a major role in
addressing the challenges of providing sanitation to the poor and restoring the
dignity of our people.
Progress was noted in expanding access to potable water. The backlog had
been halved by 2005, thus achieving the Millennium Development Goal (MDG) ahead
of schedule. The proportion of households with access to clean water has
increased from 59% of 1994 to 83%; in other words, the backlog has been reduced
from 41% to 17%.
Challenges identified with regard to the provision of Free Basic Water
include lack of technical and financial capacity in water services authorities
and limited cost recovery capacity from high volume users. These challenges
will be addressed through the deployment of experts.
JUSTICE AND CRIME PREVENTION
In the context of a long-term reduction in levels of crime achieved through
implementation of the National Crime Prevention Strategy, and improvements in
the functioning of the criminal justice system, lekgotla focused on current
challenges and measures to address them.
Reducing crime
The lekgotla noted the progress the police service is making in the fight
against organised crime syndicates. The arrest of the âairport gangâ, the
Jeppestown gang and the solving of various bank robberies and heists were seen
as evidence that the police are making progress in this regard. Co-operation
between the police and the National Prosecuting Authority (NPA) is making a
major contribution to these successes.
In pursuing its target of reducing contact crimes by 7â10% per year, the
cluster will continue to integrate its work with programmes of government to
eradicate the social causes of crime, and to implement the programmes to
strengthen border control and reduce the number of illegal firearms. This will
be complemented by recruitment of more officers and special operations to
target areas with high crime incidence.
The lekgotla was briefed on recent analysis of social fabric crimes which
highlighted the extent to which they involve people known to one another as
well as alcohol and substance abuse, against a background of poverty. The
nature of such crimes poses difficulties for normal policing methods, and
requires the engagement of communities as well as a role for the Moral
Regeneration Programme.
The Cabinet endorsed an initiative to engage the Centre for the Study of
Violence and reconciliation in an enquiry in order to gain understanding of the
violence which accompanies many crime incidents.
The lekgotla was briefed on, and endorsed, an initiative to strengthen the
national response to crime. The Justice, Crime Prevention and Safety (JCPS)
Cluster and Government Communications (GCIS) are working with Business Against
Crime and other stakeholders to formulate a National Anti-Crime Campaign
focused on community mobilisation and improving popular partnership with the
criminal justice system. The lekgotla took the view that Community Police
Forums should play a key role in such a campaign. This partnership will
strengthen society's hand in the fight against crime
Transformation of the judiciary, including efficiency of the court
system
Performance indicators show some improvements in the functioning of the
court system. In order to address challenges in reducing backlogs, arising
amongst others from an increase in the number of cases, the existing programme
is being supplemented with urgent interventions at the main centres with
backlogs. Alternative methods to reduce trial cases are also being pursued,
such as plea and sentence agreements.
The lekgotla approved in principle a new approach to the management of
awaiting trial detainees, aimed at reducing the number of such detainees being
held in correctional centres and police stations. With regard to children
awaiting trial, the approach will remain that they should be accommodated in
secure facilities and not in remand detention facilities or police cells.
The lekgotla was briefed on progress in the drafting of a White Paper on
transformation of the judiciary which takes into account the public debate on
the Bills previously published. The White Paper, which will be tabled before
Cabinet in the coming months for finalisation, is intended to initiate public
discourse on substantive aspects relating to the transformation of the
judiciary.
AFRICAN AGENDA AND GLOBAL ISSUES
The lekgotla noted progress in implementing programmes to promote the
African Agenda and to contribute to the development of a better world based on
a global order more favourable to peace and development.
African Agenda
The lekgotla noted reports of progress in consolidating our work to help
strengthen African Union (AU) structures, which are now operational. This
includes the African Court of Justice and African Court of Human Rights which
are to be merged (with Judge Ngoepe as one of the judges) and three financial
institutions, namely the African Central Bank; the African Monetary Fund; and
the African Investment Bank.
Work is being done by the AU to harmonise and rationalise regional economic
communities and to bring about political and economic integration on the
continent. South Africa will contribute to the integration of the Southern
African Development Community (SADC) region. The full implications of this
development will be tabled for public discussion and consultation in all
countries, including South Africa.
The lekgotla noted the progress towards completing the New Partnership for
Africa's Development (NEPAD) African Peer Review Mechanism's country report on
South Africa , in a process that involved extensive public participation. The
programme of action that will be the final product of the review will assist in
our efforts to sustain and speed up progress.
The lekgotla noted the actions taken to contribute to peace and stability on
our continent, among others in support of the election process in the
Democratic Republic of the Congo (DRC).
This contribution will continue, alongside the programme to strengthen
bilateral relations with African countries. Our objective in the long-term is
to ensure that South Africa has representation in all countries in Africa in
order to maximise trade, economic and other forms of cooperation.
The lekgotla expressed satisfaction regarding South Africa 's role in
international and multilateral bodies such as the United Nations (UN),
Non-aligned Movement, World Trade Organisation (WTO) and more recently, as part
of the group of five developing nations invited to participate in G8
Summits.
The failure of the WTO talks even after a G8 leaders' commitment to conclude
the talks within a month was noted with disappointment. The failure represents
another lost opportunity to improve trade relations between developing nations
and the industrialised countries.
Current events in the Middle East received particular attention at the
lekgotla. The situation constitutes both a humanitarian crisis and a set of
events with major implications for regional and international peace and
security.
Concern was also expressed that as attention shifted to Lebanon , it should
not be forgotten that at the heart of instability in the Middle East is the
failure of the international community to contribute decisively in ensuring the
resolution of the Palestinian question, within the context of peace and
security for the people of both Palestine and Israel . Government will continue
to support the efforts of the Palestinian leadership in their efforts to
establish a government that brings together and ensures co-operation among the
major parties.
South Africa 's response to the current situation will firstly be to
contribute to humanitarian assistance to the citizens of Lebanon who are
victims of this war, in efforts that will be co-ordinated with civil
society.
Secondly, we will support the efforts of the Secretary General of the United
Nations to achieve an immediate ceasefire as a step towards cessation of
hostilities and the establishment of an international peace keeping force.
The lekgotla noted that the President of Russia, President Putin, will visit
our country on 5 â 6 September 2006. This historic first visit by a Russian
President will go a long way towards cementing political and economic ties with
Russia.
The lekgotla discussed the strategy for ensuring that government fulfils its
obligations to FIFA for the hosting of the 2010 FIFA World Cup; and that as a
country South Africa takes advantage of the opportunities that come with the
hosting of 2010. These include the possibility to:
- Market our country to billions of people all over the world
- Boost our tourism and sports industries
- Speed up programmes to address infrastructure backlogs
- Unite all South Africans behind concrete popular objectives within a
concrete timeframe, promoting both unity and development.
Though preparations for the event are proceeding well, lekgotla noted the
need to avoid complacency, given the tight timeframes. The necessary
institutional structures are in place and fully functional: the
Inter-ministerial Committee is in place to co-ordinate all government efforts,
assisted by a Technical Co-ordination Committee chaired by the Deputy Minster
of Finance.
A transport plan was presented to the lekgotla. It includes upgrading road,
rail, air and non-motorised transport. It caters for long distance linkages,
intercity travelling and transportation within host cities. The upgrading of
infrastructure has already begun with airports upgrade being the most advanced.
A public transport fund has been set up in the Department of Transport to focus
primarily on 2010 initiatives. These measures will ensure that South Africa
will indeed be a better place for all after this event â a reliable, efficient
and affordable public transport system is among the legacies that we want 2010
to leave our country.
An operational and resource plan for all aspects of the 2010 FIFA World Cup
has been completed. The government will work with all stakeholders to:
- ensure that infrastructure projects are completed on time and are
undertaken with confidence and efficiency - ensure common action across the three spheres of government, state owned
enterprises, business including small and medium enterprises (SMEs), South
African Football Association (SAFA)/Local Organising Committee (LOC), the union
movement and across society as a whole - encourage the development and implementation of a vision for the national
soccer team - monitor preparations and implementation of the security strategy and
transport plan, and articulate them widely to ensure appreciation of this work
within South Africa and internationally - promote international marketing on a massive scale in conjunction with the
International Marketing Council to take advantage of this unique opportunity to
improve perceptions of our country and continent.
The lekgotla noted that making the 2010 FIFA World Cup a success is
something which Government and the soccer authorities cannot achieve alone. It
will require the participation of all South Africans, in their occupations, as
volunteers and as the country's brand ambassadors. Attention will be paid to
identifying initiatives which will reinforce public enthusiasm and involvement
in the preparatory work.
The lekgotla underlined that, while steps were being taken to accelerate
preparations for 2010, focus should not be lost on the need to build a strong
soccer team that would make all South Africans proud. The extent to which this
is an African World Cup will be enhanced by a strong performance on the part of
African teams.
Issued by: Government Communications (GCIS)
30 July 2006
