Madam speaker Honourable Premier Members of the Executive
Chairperson of the Cogta Portfolio Committee Fellow MPLs
Executive Mayors, MMCs Councillors
Leaders of SALGA in the province
Traditional leaders present
Officials of the Department
Members of the Press
Distinguished guests
Ladies and gentlemen
Honourable members, the philosopher George Santayana once said “If we ignore our past, we are doomed to repeat it.” This saying is so significant today if we remember that on this day of 19 June, exactly one hundred and two (102) years ago, the Natives Land Act of 1913 was passed. This shameful Legislation was enacted due to constant pressure by white South Africans to prevent the encroachment of Blacks in white areas.
Today, it is with great honour and a sense of pride that I can deliver this budget speech in a time that we celebrate our victory as a country over this legislation.
Honourable Members, I present this budget speech at the time when we commemorate the generation of the 1976 uprisings that gave up its life in pursuit of society they we desire; a society that
is free from bondage of racism, a better education for future generation, equality before the law and restoration of human dignity amongst the majority of this country, who are mostly Black, illiterate and trapped in abject poverty.
The struggles of Solomon Mahlangu, Hector Peterson and others who sacrificed the niceties of their youth cannot be ignored. The youth of today need to take from where these gallant patriots left off and ensure that our objective of a free South Africa and a better country is realised.
Our message to the young people of today is that they should focus on their studies and leave other things for adulthood stage. The doors of learning have been opened and the sky is the limit; so there is no excuse. We need lot of Mandela’s and our expectations are too high as a lot is at stake here.
As a province under the leadership of Premier David Makhura, we have found the rhythm and our purpose to make Gauteng a preferred destination and a province to live and work in. The Executive has adopted the ten pillar programme, game changers for implementation in the five corridors of development in our three metros and two districts.
Already the work is underway and if the municipal reports on corridor development at the recent EXCO Lekgotla are anything to go by, I am confident to report that we indeed are on a good course. The performance of municipality in driving growth and promoting prosperity in their areas of jurisdiction is therefore applauded.
Fifth Administration-Priorities and objectives
Madam Speaker, since the Fifth Administration came into office, the Gauteng Provincial Government has been hard at work addressing all matters dear to the hearts of Gauteng people and been trying to find ways to energise the economy of our province. We have met with different stakeholders to discuss how best we can unlock the potential of all sectors of our provincial economy to the benefit of all sectors of our population.
We are on course to make Gauteng an integrated city-region characterized by social cohesion and economic inclusion; the leading economy in the continent underpinned by smart and green industrial and socioeconomic development.
In pursuit of these Gauteng City Region (GCR) imperatives, the Gauteng Provincial Government (GPG) adopted the Ten Pillar Programme of radical Transformation, Modernisation and Re-industrialization (TMR) of Gauteng in the next (fifteen) 15 years. In addition, the provincial executive pronounced on the GPG Strategic programmes and the GCR Game Changer Programme. The Game Changers are comprised of interventions and projects that are inter-sphere in nature, coordinated in planning, and highly impactful.
The GCR places greater emphasis on joint planning, coordination, and collaboration across municipal borders to realize efficiency gains and improve the performance of Gauteng’s economy. This, therefore, calls for a need to strengthen inter-departmental (horizontal) and inter-sphere (vertical) cooperation to realise a GCR vision of seamless development.
CoGTA has a strategic role to play in ensuring that the implementation of the Ten Pillar and GCR Game Changer Programmes becomes a reality. These will be implemented through the cluster system, of which one is the Governance and Planning Cluster that CoGTA coordinates at the technical level. As part of the Governance and Planning Cluster, CoGTA has a joint responsibility to deliver on the following three (3) Pillars:
- Transformation of the State and Governance;
- Decisive Spatial Transformation; and
- Modernisation of the Public Service.
Key milestones and projects
The department has made considerable progress in achieving key milestones and implementing specific projects.
With the current municipal Management Performance Assessment Tool (MPAT) pilot programme, we are confident to report that we have successfully improved municipal MPAT performance by the end of June 2015. This must be applauded.
Service Delivery Improvement
Madam Speaker, on an annual basis we thrive to improve basic service delivery and effect minimum standards in relation to water, sanitation, electricity and other basic services. I would like to report that as the province, we continue to be amongst best performers in the country when it comes to provision of basic services to our citizens. In most basic necessities, we still deliver above the set national targets.
Decent sanitation is one of the key ingredients in ensuring dignity and therefore our concerns have always been the existence of the bucket toilet system in Gauteng. The last identified area with this system was Ratanda in Lesedi Local Municipality. According to the 2013 Statistics South Africa General Survey, 58 bucket toilets existed in the area.
Madam speaker I am pleased to report to this august house that the bucket system in Lesedi Local Municipality has been eradicated and dignity has been restored to those families that were affected by this sanitation system. Moving forward, we will ensure that there is no township establishment that is bedevilled by bucket system in the province.
Furthermore, we will continue to prioritise the provision of free basic services to the indigent population in the province. Our aim is to provide free basic services to at least 80% of our registered households by March 2016.
Tariff modelling
Ladies and gentlemen, it has become very clear to us that Municipalities have to understand consumer demands and the associated expenditure on services when setting tariffs. Municipalities should also strive to improve cost accounting practices and use this to determine and introduce more complex and nuanced tariffs.
It is for this reason that the department has intervened in local municipalities by assisting them with the development of cost effective tariff models. The tariff goals identified in setting tariffs are: Revenue sufficiency; Affordability of services; Promoting local economic development; and discouraging wasteful use of services. This support is being provided to Emfuleni, Lesedi, Midvaal, Westonaria and Randfontein municipalities.
Water Security
Madam Speaker, the house will agree with me that the past financial year brought about critical and urgent matters relating to water provision in our province. As a province we had to come up with drastic measures to address the water problem.
I can report that we have 2030 water and sanitation plan whose main thrust is to help us provide water to the citizens of Gauteng in a sustainable manner. In taking the matter forward, we are already in the process of developing and implementing the GCR-wide Water Demand and Conservation Management Plan.
We are closely monitoring water losses in municipalities to ensure that the target to reduce water losses by 15% is reached by March 2016. The department will also conduct awareness campaigns on rainwater harvesting in all five (5) corridors of development.
Moreover, the department will also, in conjunction with GDARD and local municipalities, monitor three water basins with regards to Acid Mine Drainage implementation by the Department of Water and Sanitation.
The Department also plays a pivotal role in coordinating the Sedibeng Waste Sewer Scheme. This is an approximately R4 Billion game changer project which is expected to be completed by August 2016.
Municipal Finance
Honourable Members, the much debated billing system in the city of Johannesburg is being addressed and I am confident that 80% of the billing queries registered with the City of Johannesburg (CoJ) will be resolved by end of this financial year.
All municipalities are expected to have in place credible, updated, and maintained infrastructure asset registers by March 2016. I must inform this house that both Randfontein and Westonaria Municipalities will be provided with hands-on support in this regard given their unique challenges.
The war room on Municipal Infrastructure Grant (MIG) spend established by both Treasury and CoGTA to improve MIG spending is hard at work and it is our plan to achieve 100% threshold by March 2016 and beyond.
Restoration of Provincial Disaster Management Centre
At the beginning of the fifth provincial administration, EXCO and the Premier’s Coordinating Forum (PCF) resolved that the Provincial Disaster Management Centre (PDMC) should be restored. I am pleased to report to this august house that we are on course with the restoration of the PDMC.
Phase one of the business plan has been completed and we are busy with phase two and hopefully we will be operating in our new centre before the end of the financial year. An amount of R106 million has been allocated by treasury in this regard. This support by treasury is highly appreciated. The Department of Infrastructure Development, as the landlord, is busy with the sourcing of the accommodation.
Readiness for 2016 local government elections
Madam, Speaker, as we prepare for the nation to once again go to the polls to cast the votes in the 2016 Municipal Elections, all wheels are in motion to secure a free and fair election.
Several programmes and initiatives are in place in preparation of the Elections, and these are centred on the key areas of improvement of the government’s response to citizens’ concerns, and the transition towards the GCR-wide metropolitan system of governance for local Government.
The CoGTA voter education programme will be implemented once the MDB process has been finalised. The programme will be undertaken closely with the legislature in terms of its Citizen Response Campaign to ensure synergies and improved efficiency in delivery.
During March 2014, the Executive Council considered and approved the implementation plan for the mergers affecting seven (7) municipalities and the department has concluded several activities, including but not limited to the publication of the Section 14(5) Notice which legislates the structures that will support the merger processes.
The determination of the number of wards and councillors per municipality has been undertaken by the MDB and the appointment of a Transformation Manager for the merger of Westonaria and Randfontein has already taken place.
A due diligence study on the municipalities that would be merged is expected to be concluded by July 2015. A study of the benefits and challenges of the Metsweding merger will be undertaken before the end of the year to assist us obviates some of the challenges reoccurring in the near future.
We are positive that the ward delimitation process, the determination of the municipal outer boundaries and the handover of the map to the IEC will be completed by December 2015.
Establishment of single tier system of local government
Honourable members, the Gauteng Provincial Government has resolved to establish a single tier system of local government towards the realization of a globally competitive Gauteng City-Region. The department has made considerable progress towards this.
We are on course to establish a category A municipality in Sedibeng. A metropolitan municipality has the necessary capacity and capability to provide services in a sustainable manner, and this has been tested with the three metros in the province.
Notwithstanding the above, I hope that the court application by the Midvaal Local Municipality and the DA against the establishment of category A municipality within the Sedibeng will be resolved without upsetting our objective of establishing a metropolitan system of governance in the area.
I would like to thank the Minister for his intervention in trying to resolve the matter rather than leaving the courts to decide.
I must further report that the Minister of CoGTA has provided leadership by driving the establishment of category A municipality in Westrand with Mogale City as an anchor. The pillar of this metro will be Lanseria airport and Maropeng heritage site and there process towards establishing the metro is being considered by the MDB and there will be constructive engagement with the affected communities before the final decision is taken on this matter.
Improvement of Government Response to citizens’ concerns
Honourable Members, you will recall that the Premier launched the Ntirisahno Service Delivery War Room on the 11 November 2014 in order to fast-track the resolve of service delivery concerns in the province. By April 2015, the war room was fully operational and it has made a profound impact in addressing community concerns.
This year we are busy with the launch of service delivery war room at municipal level and full roll-out is planned for 2015/16. The support of communities and organs of people's power will be key as we undertake this enormous task.
During the State of the Province address, the honourable Premier David Makhura said: “We owe it to the people of Gauteng to work together, plan together and co-ordinate interventions that will enhance development and service delivery.”
The department under my leadership has intervened in the so-called “hotspots” and I must say that these interventions have produced desirable results. As we speak, there are no hotspots in Gauteng save for sporadic violent protest. We are working closely with communities of Greater Westonaria, Thembelihle, and Boiketlong to name the few, to resolve prevailing challenges.
Madam Speaker, in order to enhance public education on Government Services we are busy with the repositioning of the Community Development workers (CDW) programme. The programme would have to play a key role in transformation of society and ensuring that the gap between government and its citizens is closed.
The CDWs will also work with the Independent Electoral Commission (IEC) and other key stakeholders on the Voters’ Education Programme in preparation for the 2016 Local Government Elections.
Ladies and Gentlemen, the CDWs are public servants paid by the State and therefore I expect no CDW to engage in politics while performing their duties. If they do develop an appetite for politics as it has been alleged in some quarters, they would have to resign.
In addition to this, our Frontline Service Delivery Monitoring (FSDM) and unannounced visits to service delivery sites will continue and quarterly reports provided for intervention by the affected organs of State.
Furthermore, the community visits by the Executive to communities will go a long way in connecting us to the people and sincerely hope that our CDWs and RRTs will play a key role during these engagements and I call upon my colleagues to engage me if no support is given by these officials.
Councillor Support
Honourable Members, in our engagements with different stakeholders, the Speakers Forum raised various issues that pose a challenge to their effective and efficient execution of their responsibilities as required by law.
As a result, the department has initiated engagement with the Presidential Review Remuneration Commission on two issues following the notice published by the Commission on Sunday.
The two issues raised with the Commission are the determination of the exit package for councillors whose term is ending during the 2016 local government elections and secondly, to find a way to shorten the period taken to determine the upper limits for councillors.
It is my sincere belief and hope that our request will find favourable consideration as these issues are dear to councillors and will play a key role in ensuring that more members of society avail themselves to serve as councillors in the future.
Implementation of Back-to-Basics Programme
Madam Speaker, the House may be aware that the Honourable President launched Back to Basics (B2B) on 18 September 2014 in order to fast-track service delivery and ensure that municipalities have their basics right.
According to the B2B programme, there are three categories of municipalities that exist in the country; namely: municipalities that are doing well, those that are at risk and lastly, municipalities that are dysfunctional. In Gauteng, ten (10) of our municipalities are functioning well and only two (2) are at risk, namely, Randfontein and Westonaria. There are no municipalities that are dysfunctional.
Honourable Members, you will agree with me if I say that the risk status of these two municipalities can be attributed to the decline in the mining economy in both municipal areas. This has an adverse effect on the tax base for the municipalities. The current socio-economic factors in these communities have resulted in more pressure on the municipalities to deliver basic services.
Honourable members, I have to bring to your attention that the Back-to-Basics Action Plan for Gauteng municipalities has been developed through a highly inter-active process, involving direct engagements with individual municipalities. These plans were developed with the view to ensure that municipalities are able to deliver basic municipal services in an equitable, transparent and accountable manner.
Pillar 1- Putting people and their concerns first
Madam Speaker, I am happy to report that, with community participation at the core of this pillar, a diagnostic exercise has revealed that many of the municipalities in Gauteng have functional public participation structures and systems in place, with functionality ranging from between 80-98%.
There are however certain areas of concern that I have to bring to the attention of the house. One such example is found in Mogale City. Although this municipality reported 98% functionality, the municipality has a number of dysfunctional wards. Similarly, the COJ metro with 80% functionality, demonstrated a number of risks and currently COJ has eighty-one (81) vacancies in its ward committees.
In order to address these and similar concerns and risks, multiple actions are in place to improve functionality and these include:
- The monitoring and the provision of support towards the re-establishment of ward committees;
- Ensuring proper sectoral representation in all ward committee structures; and
- putting systems in place to ensure that ward committee members receive and provide regular feedback to their respective sectors.
Community satisfaction is yet another very important aspect of this B2B pillar. According to the latest Gauteng City Region Observatory survey published last year, Westonaria and Emfuleni local municipalities are the worst performing municipalities on community satisfaction. The two municipalities recorded satisfaction levels of 55% and 59% respectively, followed by Randfontein and Midvaal Locals at 61% and 63% respectively.
Madam Speaker, as far as the three metros and Lesedi LM are concerned, they recorded overall satisfaction levels of between 70% and 71% during the same period.
The CDW programme across all municipalities is experiencing a number of challenges, one of which is the inadequate budget to appoint more CDWs in order to ensure speedy resolution of community concerns.
I would be failing in my job if I do not inform this house that the spate of sporadic violent protests against the alleged lack of service delivery experienced in recent months is a major cause for concern for the province.
We respect the Constitutional right for citizens to protest but the violent nature of such protest leading to the destruction of councillor or ward committee members properties will never be supported. In most cases, criminal elements exploit the opportunity towards their favour. I would like to commend the work done by the security cluster in restoring calm and peace when such incidents happen.
True to the B2B principles, in Westonaria Local Municipality we have responded by introducing key service delivery programmes, which includes the following:
- Partnership with Sibanye Gold Mine to build a school in Bekkersdal;
- Cleaning and Waste Management campaigns, in partnership with Pikitup;
- Installation of high mast solar-powered lights and provision of basic sanitation services in informal settlements in the area;
- Upgrading of the Sewer infrastructure in Bekkersdal; and
- Formalisation and Electrification of Afghanistan informal Settlement.
These interventions have resulted in close cooperation between the municipality and the GWCRA as well as peace and calm in Greater Westonaria. The area is no longer considered a hotspot.
The situation is, however, constantly monitored, and there are regular meetings that take place to make sure that government is always up to date with the developments in the area.
Honourable members, I have to mention that over and above addressing key service delivery challenges, these projects also had positive spin-offs in that they have created a number of job opportunities for the local community.
Pillar 2- Deliver Municipal Services
Notwithstanding the overall positive performance in this area, Gauteng Municipalities are still experiencing service delivery challenges such as:
- Inadequate water and electricity supply;
- Poor billing;
- Excessive water losses;
- Poor infrastructure maintenance; and
- Lack of adequate housing.
Madam Speaker, I have to emphasise the fact that electricity losses are at an alarming rate across the province, more especially in the three metros of Johannesburg, Ekhuruleni and Tshwane.
The Water and Sanitation Management Plan for the Gauteng City 2015, indicates that 37% of the system input for water is lost annually. On this, I have to add that although plans are in place in some of our municipalities to reduce water and electricity losses, the extent of losses is alarming to say the least.
Madam Speaker, on an issue that has become very much part of our daily lives, the much dreaded electricity outages. I must indicate that municipalities are exploring all measures to ensure that Gauteng citizens are not adversely affected and businesses continue to trade as usual.
The Department of Economic Development is developing the Energy Mix strategy together with GCR stakeholders to ensure continuous supply of electricity over the next fifteen years.
I must inform this house that Emfuleni Local Municipality is particularly experiencing challenges with the replacement of aging infrastructure. There are discussions underway between the Gauteng Provincial Planning Division, Provincial Treasury, Gauteng CoGTA and the Municipality on the funding necessary for the replacement of aging infrastructure.
Still in Emfuleni LM, the following measures have been taken to address service delivery challenges:
- The department has invested R5 million towards the provision of water supply to Iraq informal settlement through Rand Water. Madam Speaker, to date, this project has created thirty (30) job opportunities in the area and
- The installation of solar lighting in the Boiketlong informal settlement is underway.
Pillar 3- Sound financial Management and Accounting
At the top of the list across all institutions of government in this country is prudent financial management and sound accounting practices. The reduction in the number of disclaimers , and possibly eliminating them, coupled with increasing the percentage of revenue collection, the development of cash-back budgets, the servicing of municipal debts and the efficiency of Supply Chain Management (SCM) are no doubt amongst the most critical areas of focus under this 3rd B2B pillar.
Madam Speaker, an ever increasing challenge that presents itself to the Gauteng Province is the high municipal debt levels and a culture of non-payment for municipal services, poor liquidity and non- compliance with Supply Chain Management (SCM) policies, either due to lack of capacity or the requisite skills.
The department has intervened and all sector departments that owe municipalities have been requested to settle their outstanding debts and service current accounts regularly. Some departments have paid their accounts while others are engaging respective municipalities to resolve disputed invoices.
In order to address problems of poor financial management and accounting, the province has embarked on a number of programmes. As part of capacity building, sixty (60) ward councillors and officials will be trained in a two-year finance programme as part of the National Treasury Competency Framework.
Madam speaker, the success of these programmes is evident in the audit outcomes and there is evidence that suggest that the implementation of Operation Clean Audit (OPCA) has had a positive impact in the province.
Over the last five years we have experience a positive trend with the exception of Randfontein and Westonaria Local Municipalities which had qualified audit outcomes in the past two (2) years. Both these municipalities are closely monitored as they are at risk.
Many of the municipalities received unqualified audit options, with a sizable number receiving clean audit outcomes.
Pillar 4- Good Governance
In the Back-2-Basics context, this pillar determines the extent to which municipalities are fully transparent, accountable, and regularly engage with communities that they serve and the stakeholders that they conduct business with the ability to enforce quality municipal by-laws is also at the core of the Good Governance Pillar.
According to the B2B Diagnostic exercise, Gauteng municipalities face the challenges of inadequate or poor enforcement of municipal by-laws. This, coupled with poor implementation of anti-fraud and corruption policies and the poor performance and risk-management systems, presents a number of related challenges.
Madam speaker, in order to address these challenges, the provincial Government has embarked on the following interventions and initiatives:
- The review, update and alignment of municipal by-laws across the province; and
- The review and update of anti-fraud and corruption policies, including efforts to build a culture of ethical behaviour and accountability.
Pillar5- Building institutional and administrative capabilities
Ladies and gentlemen, this 5th and final pillar of B2B, deals with what is at the centre of any well-run and competitive municipality, the enforcement of competency standards for managers and appointment of persons with the requisite skills, expertise and qualifications.
The Gauteng B2B diagnostic exercise revealed a serious concern, in that there are municipalities in the province which lack some of the critical aspects of this pillar. Vacancy rates are considerably low across Gauteng municipalities, particularly at the senior level. However, the situation in Randfontein LM is somewhat different in that there are several vacancies at the very senior level (44.4% vacancy rate at senior level), including the position of Municipal Manager.
In view of the above, I have taken liberty to approach the Minister for direction regarding the filling of positions by municipalities that will be merged during the 2016 local government elections. This is to avoid bloated organisational structured at the time of the merger and thus making transition rather difficult.
The review of packages of section 56 and 57 managers has also attributed to the failure by municipalities to fill positions as most suitable candidates declined the offers. A continuous engagement with the Minister on this matter is taking place and the report will be provided at an appropriate time.
We will also establish a structured, province-wide scares skills training programme, in conjunction with relevant Sector Training Authorities (Setas), institutions of higher learning, and other professional bodies to build requisite capacity and capability in municipalities.
Traditional leaders
As a department we continue to promote a harmonious relationship between traditional leadership and Government. I can report with confidence that the relationship between the department, City of Tshwane and institutions of traditional leadership is very harmonious.
There are various projects that have been undertaken already. In the past months we supported both Councils in the hosting of the AGMs where traditional authorities accounted to their people on their activities. The campaign against xenophobic attacks against foreign nationals was promoted during these AGMs.
Both Councils participate in Integrated Development Plans (IDPs) and community consultation processes, including land use management.
The provincial partnership forum on traditional leadership had been established to regulate initiation practice in the province. The forum meets regularly to ensure that illegal initiation schools are not formed.
Madam Speaker, ladies and gentlemen, as MEC, I commit my unwavering support to the B2B programme and urge everyone in the province to rally behind it and make it work. It is our collective responsibility to make this exciting province a destination of choice!
The budget allocation for CoGTA is R406 972 000 (four hundred and six million, nine hundred and seventy-two thousand Rands). I hereby submit this budget to this august house for adoption.
I thank you.
