For me this is an important day. It has not been an easy ride to reach the stage we are at. We remained focused and determined in our endeavour to ensure that we have a reconstituted a board.
Board members are appointed in both their individual and departmental capacities. This new board is bringing with it a combination of skills and experience which will certainly propel this agency to greater heights. Their role as a board will not be an easy one given our government and the people of Limpopo’s expectations for this agency to accelerate the process of service delivery to bring about a better life to our people. They carry a huge responsibility for which they cannot afford to fail.
When we contested the national and provincial elections, we were very clear as the ruling party that through transport infrastructure, roads in particular, will:
* improve the quality of life of our people
* ensure access and link communities to both economic activities and social services
* ensure economic growth.
To execute their fiduciary duties as a board, they will need to complement each other and work as a collective to achieve the required cohesion that will deliver on the mandate of the agency as informed by government policy and transport framework. A cohesive team that is unrelenting in its determination to ensure a better life for our people.
We have just gone through a process of reviewing the provincial growth and development strategy. The strategy has identified agriculture, mining and tourism as key pillars of our provincial economy supported by efficient logistics hubs. Through roads development, we have a duty to prioritise and support those industries that will enable the growth of our economy.
As a sole shareholder, I am very clear about my expectations. The board will have to align its work to government priorities as this was a major consideration in restructuring and bringing about transformation in the board. We cannot afford to be at variance with each other. I must state, in no uncertain terms, that as government we will set the direction, the tone and determine priorities which must be implemented. Therefore, the business plan of the agency must be informed by and clearly articulate government framework. They have no blank cheque as we have an interest in how they function and my role is to ensure that they operate within the course and scope of the legislated mandate.
This agency accounts for almost half of the total budget allocation of my department. Of the R2,89 billion, close to a billion rand is allocated to Rail Agency Limpopo (RAL). We have an interest in how the huge allocation is spent? Hard and difficult questions will have to be asked. We will be asking whether we are deriving value for our money. If it means digging deeper into how the model is framed, so be it. They have a duty to thoroughly and intensely analyse the current framework and method of operation to determine whether the agency is geared to give us value, and whatever the findings I expect decisive leadership to steer the agency in the direction government expects. I expect leadership that makes correct decisions in the public interest and if that means benchmarking costs we are incurring against similar entities or even other provinces, so be it.
Issues of genuine Black Economic Empowerment (BEE) are on my radar screen. We have a duty to grow and build the civil construction industry in the province. We cannot continue to say that, 15 years into democracy, our people have no capacity when we have the wherewithal to ensure capacity building. Projects can’t circulate within a small group of companies. We have a commitment to our people to improve their living conditions and spread meaningful work to a greater pool of emerging companies. I am sure an analysis will be made on this. I am sure I will not get long and convoluted answers on a policy matter such as that.
Our people did not vote to be told that only white-owned companies are the only capable ones. Fundamentally they are aligned to the ruling party because we promised that we will shake and restructure the landscape of the South African, and the Limpopo economy in particular. The delivery of roads projects must be aligned to even unbundling the work to ensure that many people benefit especially women and the youth.
Ladies and gentlemen, we can make a serious dent on the backlog of 15 630 kilometres of gravel roads. We can achieve that if our purpose is singular. But I challenge the new board to examine the current development model which says we are likely to tar 3 000 kilometres in 26 years. That is a chameleon speed and I can say without any fear of contradiction that I am not comfortable or happy with that approach.
We have no reason not to focus on our growth points. The province is particularly rich in platinum which is found in the south east (Sekhukhune), copper mainly in the east and north (Phalaborwa and Musina) and large deposits of coal in the Lephalale as well as tourism potential in the Bushveld. Agriculture is also the mainstay of the provincial economy in many districts and that must be supported as well. Our province needs links between these areas and towns in the form of roads to transport mining and agriculture goods and also to get our people from point A to B.
There is a need to reconstruct R33 from Modimolle to Lephalale to accommodate huge trucks that will be transporting mining equipment. I am informed that if we are to do nothing, this strategic road network will be finished in no time. There is also a need to re-construct N11 which is also a route for products derived from mining and agriculture to the nearest port in Richards Bay. The platinum which is mined in Sekhukhune is transported through R37 to the smelting station in Polokwane. The key question we need to resolve is whether there are no funding options to this bind that we find ourselves. Whatever the interventions we are to make we will have to work much more closely with the South African National Roads Agency especially on the N11 and R37. Postponing decisions on these strategic road networks will not assist our course.
With this new board we need to open a new chapter of good governance. Shareholder approval of the agency’s business plan and regular reporting on performance are non-negotiables and will characterise our working relationship now and going into the future. Those instruments are aimed at ensuring that principles of transparency and accountability can be met in a manner that is understood and is acceptable. My department will exercise the necessary oversight and we promise that we will rise to the challenge.
Having said that I would like to emphasise my trust in this board, which I think has the abilities and requisite experience to perform its fiduciary duties.
As the African National Congress (ANC) led government we have committed to responding dynamically to the huge expectations of the communities who have entrusted us with the mandate to lead once again. Without an improvement in the quality of life of the majority of South Africans, the political conditions for growth will not exist, and without growth the economic conditions for improved quality of life cannot be created.
Ours is to ensure:
* that transport services are safe, reliable, affordable and sustainable
* that we reduce travel times and cost of doing business
* that we implement policies that coordinate public and private sector investment in the transport sector
* that transport infrastructure and services meet investment, economic and social demands of our people.
Their appointment is with effect from 1 October 2009 to 31 March 2011, which is the unexpired portion of the terms of office that commenced on 1 April 2008. The six new board members are:
* Mr Mashao Sello Rasethaba: Chairperson
* Mr Hetlikara Sylverster Shipalana
* Ms Mmakgolo Meta Maponya
* Mr Floyd Brink: Provincial Treasury
* Ms Thindisa Malehu: Roads and Transport
* Ms Seboko Mmabatho Maureen: Public Works
Overall, the people who have been appointed to the board of RAL are dynamic in business and strategy and therefore will be able to take RAL into great heights.
I thank you.
Issued by: Department of Roads and Transport, Limpopo Provincial Government
9 October 2009
Source: Department of Roads and Transport, Limpopo Provincial Government (http://www.ldrt.gov.za/news.php)
