P Vilakazi: North West Local Government and Housing Prov Budget Vote
2007/08

10 May 2007

Introduction
Madam Speaker, the duties which I point out to you – to account for my labour
and present plans ahead, I have striven to perform to the best of my ability
and shall continue to strive with every beat of my heart to fulfill … so far as
I have the power.

I may err, but my error is not of the heart. I may deceive myself, but I
will not deceive your august house. Listen to me then, fraternally; judge me
freely among yourselves, whether I speak truth or error.

If it seems to you I speak in error, judge me; if you believe me as the
principal executing authority for the developmental local government and
sustainable human settlement agenda of our province, then it is essential,
Madam Speaker, to assess the past with a sense of the historical responsibility
and on the basis of historical truth. This has to be done first, because of the
tremendous importance of those years paid for by the blood of our martyrs, as
it determines the destiny of our motherland – the North West province of South
Africa, my home!

For it is not light, Madam Speaker, that is needed, but fire that creates
light; it is not the gentle shower, but thunder that brings rain. We need the
storm, the whirlwind, and the earthquake's kind of rapture to ignite government
and the citizenry - in an all round mobilisation efforts to change the lives of
our people translating it to the eradication of inhuman methods of night soil
disposal; the extension of energy reticulation for household cooking and
lighting; the faster delivery of shelter for the poor - integrating it as part
of South Africa's new human settlements free from race, free from poor vs rich,
free from black townships being flung away from economic centres etc.; and last
but not least the mobilisation effort of deepening democracy through enhanced
community participation in the affairs affecting their lives!

Departmental Human Resource Management

The departmental structure has undergone a rigorous review considering the
new imperatives of the Five Year Local Government Strategic Plan and Human
Settlement Strategy! The review has revealed both glaring omission and
commissions in funding and personnel capacity required to drive the above
strategy and policy imperatives, notwithstanding our good performance.

Over the coming three months, to be precise, by end of August 2007, the new
structure will be finalised. Notwithstanding the above review, we have
continued to recruit key and strategic approved personnel sensitively stalling
some posts within the Housing Chief Directorate in order to facilitate the
smooth absorption of the North West Housing Corporation (NWHC) core staff. We
have registered a delay in this regard and would now fast-track the process in
joint collaboration with the labour representative union, NWHC management and
departmental management by formally constituting a Negotiating Forum convened
by an Independent Facilitator to be appointed by 1 June 2007. We envisage these
negotiations to be completed by no later than end September 2007. For it is not
light Madam Speaker that is needed, but fire that creates light; it is not the
gentle shower, but thunder that brings rain.

Developmental Local Government Municipal Finance

Madam Speaker, as required by the Constitution of our country, the
department continues to monitor and support municipalities with regard to
financial matters. In the year under review (2006/07 financial year), the
following achievements were registered:
* Seventeen municipalities submitted their annual financial statements by 31st
August 2006. Of the remaining eight municipalities, seven were able to submit
by 31 March 2007 and the outstanding municipality – Madibeng, has a major
challenge resulting from a problematic financial system. The department
intervened in partnership with the Development Bank of Southern Africa (DBSA)
to install a new financial system co-funded at a tune of R1,6m (R1m paid by the
department). We will present a much improved report in the coming year!
* The department, in partnership with the Provincial Treasury's Municipal
Finance Management Act (MFMA) Unit, has established a forum and conducted work
sessions aimed at assisting municipalities with the GRAP/GAMAP conversion,
preparation for the submission of annual financial statements and preparation
for the 2007/08 municipal budget process. In this regard, we are on course to
implement the Five Year Local Government Strategic Agenda in respect of one of
the 65 Actions. We, in a practical way Madam Speaker, are breaking down the
silo approach common in state departments further enhancing government
integration and pulling of resources together.
* The department concerned with enlarging the income generating envelopes of
municipalities, initiated a programme to assist municipalities in preparing
themselves for the implementation of the Property Rates Act. Work sessions have
successfully been conducted for individual municipalities and the Farmers'
Unions resulting in ten municipalities ready to implement the Act by July 2008
and the remaining ten by July 2009! The department is in the process of
establishing Appeal Boards in each of the four District Municipal Areas to deal
with any dispute that my arise as part of the of the implementation
process.

For it is not light, Madam Speaker, that is needed, but fire; it is not the
gentle shower, but thunder. We need the storm, the whirlwind, and the
earthquake to spur us on!

Madam Speaker, I must pause here and make a special point regarding the
escalating municipal debt which has now escalated to R2,3 billion (as at March
2007) with the major contributory factors being amongst others, the poor
payment culture by communities and the lack of proper or poor debt recovery and
credit control systems by municipal administrations. Certain of our
municipalities are nearing insolvency and collapse. The populist reason which
we sometimes tender is high unemployment and poverty levels in our localities.
We do not share in this view because such a view suggests that it is the poor
and the unemployed who are contributing to the financial non-viability of our
Municipalities. Case study after case study would reveal the opposite.

Our experience has taught us that the culture of non-payment is most acute
amongst those who are able but unwilling to comply with their civic duties. The
vast non-paying tenants of NWHC flats prove my point.

Is it the poor and unemployed and the haves who devise elaborate tax evasion
and avoidance schemes? Madam Speaker, the answer lies elsewhere. It lies in our
lack of political and administrative will to enforce credit control measures.
It lies in our unwillingness to make strategic choices within the confines of
our scarce resources when it comes to filling of posts.

We would rather create and fill comparatively speaking mundane posts instead
of vacancies in our finance departments. It lies in our inability to manage
losses in our trading services. Let me pause here as the list goes on and on
but let me hasten to add that I am contemplating invoking, in collaboration
with my colleague the MEC for Finance, the limited legislative framework at our
disposal to arrest the situation.

The stuck reality and state of affairs in municipalities is further
characterised by the following challenges:
* The high turn over of key personnel such as municipal managers and Chief
Financial Officers (CFOs) remains a challenge compounded by a poor skills
retention strategy overall. To date the vacancy rate of key municipal
management is 26% for Municipal Managers and 24% for CFOs improved from the
State of the Nation Address statistics of above 50% vacancy rate of SMS
posts.

However, I must mention that most of the appointed officials are new in
these crucial management posts. This is a challenge as it confirms that there
has been no institutional succession planning and the high loss of
institutional memory and unsustainable capacity building. There is still a high
vacancy rate in the budget and treasury departments of municipalities.

* Some municipalities continue to fill the vacancies without the
contribution (value adding involvement) of the department. This also
compromises compliance with the promulgated competency framework and senior
management key competency requirements as prescribed by Department of
Provincial and Local Government (DPLG) and National Treasury. The monitoring,
hands-on support and guaranteed performance responsibility of the department is
undermined.

* As at the end of March, only eleven of the twenty five municipalities had
completed and submitted section 57 performance agreements.

* This continues to impact on the failure of municipalities to submit
section 46 annual performance reports.

For it is not light, Madam Speaker, that is needed, but fire; it is not the
gentle shower, but thunder. We need the storm, the whirlwind, and the
earthquake to spur us on!

Madam Speaker one of our weakest links over the past four years has been to
comply with Maritime Safety Authority (MSA) Sec. 46 and 47 in monitoring the
performance of municipalities in line with prescribed legislation and prepare
annual provincial reports in line with MFMA section 131. To this end, the
following has been achieved:
* The long outstanding section 46 and 47 reports for 2002/03; 2003/04 and
2004/05 respectively (with all components or partially depending on the
submission of municipalities) have been compiled and are ready for tabling as
promised to the legislature. The department is finalising the 2005/06 reports,
which we will also table in part or with all components by July 2007.

* MFMA section 131 reports for 2004/05 have been finalised and the 2005/06
reports will be finalised and submitted to the house as soon as individual
municipalities made their final submissions to the department.

Public participation

Regarding public participation, all 365 ward committees have been
re-established in all 21 local municipalities and this is a 100% achievement.
Jointly with the Local Government Sectoral Education and Training Authority
(SETA) and DPLG, a ward committee booklet has been developed and distributed to
municipalities.

The composition of ward committees is now mainly based on representation
from a diversity of sectoral interest groups rather than merely party political
orientation. Ward Committee members have received induction training directly
from the department while in addition the local municipalities in the
Bojanala-Platinum District have received a train-the-trainer type in
partnership with USAID.

Municipalities must now make sure that these important community
participation structures are utilised optimally to perform their developmental
duties. According to the latest report on the functionality of ward committees
together with the implementation of the complaints handling system, we are
still performing below average and municipalities should do more to make public
participation more meaningful and substantive.

Our weaker area this past year has been the inability to fully implement the
Community Based Planning. However, despite the challenges we face, the
Ventersdorp and Greater Taung Municipalities have managed to implement the
Community Based Planning Programme.

If smaller municipalities like these can manage, surely those with more
resources can do better! We will ensure that all Municipalities follow the
example of the two smaller municipalities.

To enhance and strengthen community participation, a total of 286 Community
Development Workers (CDW) were appointed effective from January 2007 and were
proportionally deployed within our municipalities in the province. However, 11
have been transferred to the Northern Cape and 24 transferred from Gauteng into
our province due to the cross-border decisions taken on same, thus the current
total is 299. CDWs have undergone a full week of comprehensive induction that
was held in March this year to capacitate them of their expected role. 50
Supervisors have been trained as mentors.

To foster harmonious working relationships, councillors and the Dikgosi have
been jointly oriented to better understand their roles, responsibilities and
limitations.

This presidential project is successfully being implemented in
municipalities and is well coordinated through local, district, provincial and
national coordinating forums. The organisational establishment phase is now
complete and what is left is for municipalities to optimally utilise the
services of the CDWs at their disposal.

The CDWs played a critical role in data collection activities as part of the
African Peer Review Mechanism (APRM) country evaluation process. Municipalities
must now use the CDWs to strengthen the capacity of Ward Committees in order to
enhance meaningful community participation. One of our strategic objectives
this financial year is to create greater synergy between the CDW and the Public
Participation programme.

Capacity building

Madam Speaker, capacity building in municipalities is very close to my
heart. Our first concern, as lovers of our province, must be to enlighten it.
Enlighten our people and you will elevate them. Show them they are men and
women, and they will act like men and women. Give them just ideas of civil
government, and let them know that it is an expedient for gaining protection
against injury and defending their rights, and it will be impossible for them
to submit to government's wish, like most of those now in the world, are
usurpations on the rights of men, and little better than contrivances for
enabling the few to dictate to the many.

Inform and instruct mankind; and most evils will be excluded. Happy is the
person who, himself raised above vulgar errors, is conscious of having aimed at
giving mankind this instruction. Happy is the scholar or philosopher who at the
close of life can reflect that he has made this use of his learning and
abilities, but happier far must he be, if at the same time he has reason to
believe he has been successful, and actually contributed, by his instructions,
to disseminate among his fellow-men just notions of themselves, of their
rights, of religion, and the nature and end of better government.

Every degree of illumination which we can communicate must do the greatest
good. It helps to prepare the minds of men for the recovery of their rights,
and hastens the overthrow of ignorance.

Such enlightenment goes with virtue. It ought to follow knowledge, and to be
directed by it. Virtue without knowledge makes enthusiasts: and knowledge
without virtue makes devils; but both united -elevates to the top of human
dignity and perfection.

We must, therefore, if we would serve our communities, make both these
objects of our zeal. We must discourage vice in all its forms; and our
endeavours to enlighten must have ultimately in view a reformation of manners
and virtuous practice.

In this regard, we have focused on organisational development and training.
We have audited all 25 municipalities to check their systems capacity. We have
registered 92% successes in promoting compliance with labour legislation
regarding the annual submission of employment equity plans to the Department of
Labour.

Similar success rate has been recorded in respect of submission of workplace
skills plans to the Local Government SETA (LGSETA). To date, we have developed
thirty generic policies and by-laws for customisation and adoption by
municipalities and nineteen of these are at the draft stage and are scheduled
to be completed by the end of this financial year.

Despite the zero budget allocation for training programmes over the next
three years, our strategic partnership with LGSETA will ensure success in this
regard. R647 000 has already been allocated by the LGSETA per district for
skills development purposes. Municipalities in the Bophirima district have
already started while others will start training from as early as May 2007.
LGSETA has invited all municipalities to submit their three-year skills project
plans for funding and through the skill development facilitators (SDFs) forum,
these plans will be completed before the end of June 2007 for implementation
immediately thereafter. I therefore urge all municipal managers to give the
SDFs the necessary cooperation and support so that these plans can be realised.
Failure to take advantage of this generous offer by LGSETA will result in the
funds been diverted to provinces that have better institutional readiness,
based on a first-come-first-serve principle.

I wish to sound a word of caution to our political leadership and officials
in municipalities, together with those in all provincial and national sector
departments, that which we cannot fail to achieve are the objectives of the
Five Year Local Government Strategic Agenda, which talks about the
unprecedented roll out of hands-on capacity building support to municipalities.
We have not laboured under the illusion that the Plan would automatically bring
with it additional resources to support and enhance the capacity of the local
sphere to acquit itself of its Constitutional mandates. Our consistent
understanding was that we would have to utilise our existing resources and
reprioritise same in order to ensure that we implement the deliverables of the
Plan. Experience has however taught us that we do indeed require additional
resources lest we fail to deliver on the Plan.

It is apparent that the substantial responsibilities for Province in general
and the department in particular referred to in the Plan will require
additional resources.

We welcome the R3 million provided for local government support but would
argue that the allocated amount barely scratch the surface therefore wish to
urge this Honourable House to avail additional resources in the coming
financial years for local government support.

For it is not light, Madam Speaker, that is needed, but fire; it is not the
gentle shower, but thunder. We need the storm, the whirlwind, and the
earthquake to spur us on!

Madam Speaker, the plan is also based on the premise that it is hands on
support programme for the local sphere by the provincial and national
spheres.

Again experience over the past year has taught us that the emphasis would
have to shift in placing responsibility with the local sphere to give hands on
support to itself. An example is the filling of key vacancies and related
matters. We can support and have always offered such support but cannot fill
these posts as the competency vests exclusively with the local sphere.

Another example is the procurement regime which impacts very profoundly on
our ability to develop our communities. In fact Madam Speaker I am concerned
that inordinate delays in some Municipalities manifests itself in huge under
expenditure of Municipal Infrastructure Grant (MIG) and housing funds. Needless
to say that we cannot countenance such a situation.

Colleagues let those whom the MFMA has empowered to perform certain
functions perform those functions unhindered and uninfluenced by us whether
overtly or covertly. My understanding of the role of a Councillor is that he
/she adopts policy and monitors implementation of same Nothing less and nothing
more.

The undue interest and influence in supply chain processes by political
office bearers has increased over the past two years and therefore needs
vigilant monitoring on our part.

Recent violent protests

Madam Speaker, in this respect, as all should know, I have recently taken
visits to meet with communities and their leadership in those areas that were
affected by violent protest action. We have returned and sadly the highly
publicised poor municipal service as the main reason for protest does not stand
the test of time.

Our findings reveal in some municipalities internal strive within serving
councillors is the main contributor in whose opposing sides stands protesting
communities apart, in some business interest by contractors and/or employees
within government projects is the driving force disguised as public discourse,
in some of course poor public participation and/or communication is the cause
of protests and last but not least, attempts to hold local council government
hostage and make it difficult for the delivery of services is the intended
outcome!

As I proceed to these municipalities, I observe the developments and our
achievements! I do so clear in my mind that much of the success we have
achieved has been as a result of our government's choice of treating both our
supporters and detractors alike, as South Africans of equal status. It will
always be clear to us, like in the observations made by the renowned David
Hume: of the dignity or meanness of human nature that:

“…the sentiments of those, who are inclined to think favourably of us as
government, are more advantageous to virtue, than the contrary principles,
which give us a mean opinion of our nature; that when a man is prepossessed
with a high notion of his rank and character in the creation, he will naturally
endeavour to act up to it, and will scorn to do a base or vicious action, which
might sink him below that figure which he makes in his own imagination.”
So we are to call upon citizens to think highly of themselves and worthy of
moral rectitude never to indulge in actions that degrade their character, such
as the ones we have seen in Khutsong of Merafong, in Signal Hill of Mafikeng,
of Ditsobotla and Ikageng of Maquassie!

Madam Speaker, we do all this because we must be ready to dare all our
patriots not to copycat the bad example.

For history does not long entrust the care of freedom to the weak or the
timid. We must acquire proficiency in defence and display stamina in purpose.
We must be willing, individually and collectively, to accept whatever
sacrifices may be required of us to soldier on. Let us remember, A people that
values its privileges above its principles soon loses both.

For it is not light, Madam Speaker, that is needed, but fire; it is not the
gentle shower, but thunder. We need the storm, the whirlwind, and the
earthquake to spur us on!

Disaster management

In the case of the Taung floods of February and March 2006, it was the first
major incident to be handled by the department since the inception of the
Disaster Management Act in 2002 and was a perfect showcase for the
interdepartmental and multi-sectoral approach to an incident. In this case we
have learned the importance of communication between and amongst sectors and
various role players.

One of the most important lessons to remember about the Taung incidents over
the past few years is that Taung is a prime example of where development has
taken place without proper risk and vulnerability assessments being done
beforehand. This is due to vast rural nature of the area and the undesired
consequences of apartheid planning and deprivation as well as lack of land use
management in the past.

In the case of the Matlosana incident the department is presently involved
with the assessment of the damage to all infrastructure and housing in the
area. A complete report on the incident will be finalised in the next few weeks
after which a submission for possible financial assistance from the National
Treasury through the National Disaster Management Centre will be done.

In the interim, the department will however, provide a resource to finance
repairs and reconstruction of damaged houses whilst awaiting the above national
process.

The incident itself was very professionally handled by the Disaster
Management Centre based in the District Municipality and included all relevant
role-players. Disaster relief from all sectors was quick to respond and the
community was assisted as soon and as well as could be done. The department has
and still is busy with assisting both technically and financially in the
development of the Disaster Management plans and response capabilities of both
the Local and District municipalities.

The District Municipality is at present in the final stages of completing
its Disaster Management Plans and framework for all the Local Municipalities
and itself.

The first phase of the Disaster Management Plans for all districts and the
province is expected to be completed by November 2007 and the final phase
within the next two (2) years. The delay in the process has been as a result of
capacity within the District municipalities which is at present being attended
to.
Municipal Infrastructure Grant (MIG)

The province has shown significant improvement in utilising MIG to provide
basic infrastructure / eradicate service delivery backlog in the 2006/07
financial year compared to previous financial year 2005/06. This will thus lead
to an indication of more basic infrastructure provision to communities and more
job creation. To attest to that, MIG expenditure as from the 2005/06 financial
year to date is as following:

* 2005/06 Financial Year
Allocation: R422 254 226,45 for 2005/06
Roll Over: R163 584 099,71 from 2004/05
Expenditure: R409 741 702,92
Balance: R176 096 623,24
Expenditure: 58%

* 06/07 Financial Year
Allocation: R525 573 629,39 for 2006/07
Roll Over: R181 032 996,86 from 2005/06
Expenditure: R445 124 368,22
Balance: R80 449 261,14
Expenditure: 85%

An improvement of 27% is observed, indicating more expenditure and less
under expenditure by municipalities.

From the 16 municipalities that received MIG in 2005/06, only three managed
to spend 100% compared to 22 municipalities that received MIG funding in
2006/07 whereby 13 managed to spend 100% by end of the financial year. This
improvement is attributed to improved Planning, better understanding of MIG
processes by functional Project Management Units (PMUs) at municipal level and
the department taking full charge of the MIG programme.

Bucket eradication

The department availed R30 million in the 2006/07 financial year to assist
municipalities which had bucket sanitation backlogs and managed to eradicate
3042 buckets in the following identified municipalities:
1. Central District Municipality
* Tswaing
* Ditsobotla
2. Maquassie Hills Local Municipality
3. Bophirima District Municipality
* Lekwa-Teemane
* Mamusa

The department availed a further R70 million in the 2007/08 financial year
to support municipalities which are eradicating bucket sanitation in all formal
areas, to meet the December 2007 national target. The same municipalities will
be benefiting because identified as having huge bucket sanitation backlogs in
the province, thus being further assisted and anticipate to further eradicate
more that 7 100 buckets in the following municipalities:
4. Central District Municipality
* Tswaing
* Ditsobotla
5. Maquassie Hills Local Municipality
6. Bophirima District Municipality
* Lekwa Teemane
* Mamusa

This financial year of 2007/08 the department will be striving to reach 100%
expenditure on MIG, but also ensure that acceptable level of work is done to
the required standards, quantity and quality. Funding for this financial year
is as following:

2007/08 Financial Year
Allocation: R721 801 000,00 for 2007/08
Roll Over: R80 000 000,00 from 2006/07

From the R721 million mentioned above, R184 million is ring-fenced to deal
and meet the set national target of December 2007 to eradicate buckets in all
formalised areas, established before June 2006 in the following
municipalities:

1. Matlosana Local Municipality: R85 000 000
2. Bophirima District Municipality: R26 000 000 million
3. Central District Municipality: R11 900 000
4. Ventersdorp Local Municipality: R240 thousand
5. Maquassie Hills L M: R56 000 000
6. Merafong L.M: R4 900 000
Total: R184 000 000

The department has increased capacity in the MIG directorate by recruiting
additional staff in the rear skills divisions of Engineering coupled with
deployment of experienced engineers to mentor young graduates in the
engineering field at municipal level.

Municipalities will also be assisted in recruiting relevant and appropriate
personnel to strengthen PMUs, which are funded as a top slice of up to 5% of
the MIG allocation but not exceeding R3m.

Free Basic Services (FBS)

The department has also established and staffed the FBS sub-directorate to
assist municipalities with the implementation and monitoring of free basic
services, especially water, sanitation and electricity in serviced areas.
Currently, free basic services are provided to communities but communication to
beneficiaries, record keeping/documentation and management thereof is very poor
in various municipalities.

This challenge will be addressed through the backlog study to be undertaken
by the department in all municipalities in the province, which to an extend
will also help with indigent registers of municipalities. The department has
set aside R3,2 million which shall be augmented by Development Bank of Southern
Africa (DBSA) funding to ensure a comprehensive and credible provincial backlog
study on water and sanitation.

Development and planning

With regard to the Integrated Development Planning (IDP), the Department
intends to review and appraise municipalities' IDP goals and strategies to
enhance integration and alignment with the National Spatial Development Plan
and the Provincial Growth and Development Strategy.

It is further the intention to ensure that 2007–2011 municipal (five-year)
IDPs are assessed timeously to give input to municipalities for
improvement.
* It is imperative to promote and facilitate alignment between national,
provincial and municipal development plans.
* Guidelines will be development to promote a coordinated support for
municipalities in the province on IDP and the weaker municipalities will be
targeted with the assistance of a development-planning expert deployed by the
DBSA and ensure that municipalities receive essential hands-on support on
IDP.

Local economic development (LED) is a vehicle in pursuit of eradication of
poverty and unemployment, therefore the department plans to facilitate
Integrated LED in the Province and Capacitate, Support and monitor LED at
municipalities. For us to be able to synchronise LED plans we intend to develop
an LED framework that will guide municipalities on pursuing their obligation
and mandate to ensure economic development and job creation.

Spatial Planning and Land use management: It is the department's intention
to provide an effective land use management and land use control within
municipalities in the province. In order to achieve that, provincial guidelines
on land use management and control will be developed to assist municipalities
to meet the requirement of developing spatial and land use management plans.
The Provincial Spatial Development Plan will be reviewed through the support of
the partnership established with Finland.

Development Administration (Rapid Response Unit): The department was not
able to fully establish the Rapid Response Unit due to funding constraints in
the previous financial year.

However, in the current financial year, there is funding available to
establish a fully-fledged unit that will rapidly respond to municipal
challenges in an efficient manner as pronounced last year. The unit will be
working closely with the Office of the Premier, Finance department, and South
African Local Government Association of the North West on preventing and
fighting corruption in accordance to the Local Government Anti-corruption
strategy which the department launched on 2 April this year.

The Department of Provincial and Local Government (DPLG) has developed and
introduced a comprehensive programme aimed at providing the local sphere of
government with support in the current term of local government ending in 2011.
The strategy, termed the 5-year LG Strategic Agenda, has identified the roles
of various sector departments, state owned enterprises, and the private sector
on Local government support.

The Department of Local government and Housing in partnership with the
Office of the Premier will ensure that all departments within the province as
well as some public entities develop support plans and dedicate resources to
give hands-on support to municipalities. All departments should reflect how
they intend supporting municipalities to meet their Constitutional
obligations.

The departmental strategic plan for the Medium Term Expenditure Framework
(MTEF) period and annual performance plan of the department reflects this
hands-on support through the three priorities of the plan which are:
* mainstreaming hands-on support
* addressing the structure and governance arrangements
* refining and strengthening the policy, regulatory and fiscal environment

Housing delivery within the Human Settlement Strategy

Madam Speaker, today marks the second year of success in housing delivery
since the plan I presented to the house on 14 April 2005. For the second time
in a row, the North-West Province has emerged the best performing province in
housing delivery. In 2005 we came out of the Intensive Care Unit and remained
in casualty for sometime. We continued to work hard for the desired health, and
in 2006 the sun became brighter, and we could see our way out of casualty.

For it is not light Madam Speaker that was needed, but we brought the fire
that created light in housing delivery; it is not the gentle shower that we
enjoyed, but thunder ejected us out of our comfort zones that brought sobering
rain of houses to the community of the North West!

I'm proud to mention in this house today that we are out of casualty and in
the in the housing delivery racetrack and maintaining first and lead position
in delivering houses to the poor! Our detractors hate us for this sobering
achievement but our communities love us for we have given them shelter and
dignity! Our detractors are mean, sophisticated and a threat to a better life
of our people!

They have in their wily craft ignored our successful record from the
shackles of our past poor performance! They continue to overplay
unsubstantiated poor workmanship stories, cry favouritism of certain
contractors and manufacture reports from the true facts. Against all odds, we
are winning!

The department has been viewed as an interfering monster in housing
delivery.

We have upset the humble apple pie by intervening and coursing housing
delivery to change for the better! Of course no one likes being dragged let
alone screaming and kicking to own up to failure and committing to improving
it! We have a job to do and we've done it to the displeasure of those who are
happy with failure.

Madam Speaker, without compromise, we remind everybody our responsibilities
in the housing delivery value chain and that housing is a Provincial and
National concurrent function. We emphasised, it is the responsibility of the
Provincial department of Local Government and Housing in our case, to execute
this mandate. However, municipalities as the local sphere of government, has a
responsibility to ensure that the following is done in preparation for housing
delivery:
* identification of housing beneficiaries.
* identification of land for housing development and installation of bulk
infrastructure.
* negotiations with Traditional Authorities and Land Affairs for land
availability
* allocation of completed houses to qualified and approved beneficiaries.
* identification and processing of applications for emergency housing.
* identification of potential squatter areas for eradication
* preparation and submission of housing business plans for annual
allocations.

These responsibilities clearly indicate that there is much more to be done
by municipalities to ensure that the process towards housing delivery is as
smooth as possible.

Madam Speaker, allow me to go back a little bit and inform the house of the
housing situation as we found it. The capacity and ability of municipalities to
deliver housing remains a challenge until today. For the last two years, the
department faced tremendous challenges in trying to solve housing related
problems at municipal level.

This includes, among others, the ability of the municipalities to manage
housing projects, and the ability of the service providers they appointed, to
complete housing projects. The department has continuously been inundated with
complaints of poor workmanship done by some contractors, but for some reasons,
the same contractors continue to get opportunities from municipalities.

To say the least, our assessment reveals that without fail, all Municipal
Managers' performance contracts do not contain in their Key Performance Areas;
housing delivery targets as an area of measurable performance.

With the envisaged accreditation process, the department will continuously
engage municipalities to have fully staffed capacity and create housing
departments directly responsible for housing delivery. We remain committed to
push for the acquisition of this capacity by municipalities and to accredit
them for level one accreditation. The following municipalities have been
identified for level one accreditation, Mafikeng, Matlosana, Merafong, and
Rustenburg.

Housing Performance: For the year ended 2006/07, the department delivered
29000 houses in respective municipalities. This delivery is the highest ever to
be recorded by the department in a single financial year. This is our prove
Madam Speaker that we are now energised and ready to delivery human settlements
to our people. We want to also take this opportunity to thank all those who
were involved towards achieving this milestone.

This includes officials from my department, municipalities, National
Homebuilders Registration Council (NHBRC), and contractors who did the actual
construction of these houses.

Housing Asset Management: For the financial year 2006/07, the department was
allocated a Conditional Grant of R 13,901 million (including the roll over of
R2,496 million), plus the R84,014 million Taung Housing Emergency fund which
was included in our third quarter, to bring the total budget of the department
to R699,915 million. Madam Speaker, we managed to spend R696,544 million which
is a 99,95% of the allocated funds plus additional funding, by the end of the
financial year. This expenditure and the above mentioned number of houses
completed, is a clear indication that the department is on track.

Urban Renewal, Rental and Informal Settlement Upgrading: With the completion
of the Reivilo Hostel into family units, the department and the Matlosana
Municipality managed to register tremendous progress on the Kanana and
Jouberton Hostels. An Amount of R2.3m was spent on Kanana, and R5m on Jouberton
respectively. A total number of 390 family units were completed in Matlosana
during this year under review. 86 of this was built in Kanana, and 304 in
Jouberton.

The process of changing hostels into family units will continue with the
Community Residential Programme until all the remaining hostels are
completed.

With the hostel redevelopment process the department is highly involved to
improve the state of rental accommodation. As we all know, some of the people
working from within the province comes from outside the province, and have
houses elsewhere. There is a growing opportunity for rental accommodation, and
social housing comes handy in this regard. We already have 1 000 serviced
stands for social housing within the Rustenburg Pilot project, and our
intension is to have more of such projects in highly potential areas such as
Matlosana Potchefstroom and Mafikeng.

Madam Speaker, lack of reliable information concerning the occurrence and
proliferation of informal settlements in the province poses a serious challenge
for the roll out of the plan to eradicate informal settlements by 2014. To
address this challenge, the Department is in the process of finalising
arrangements to acquire satellite imagery, create a database, establish the
baseline and put in place a monitoring mechanism.

This will facilitate the commencement of phase 2 of the informal settlement
upgrading programme, which is the compilation of the Provincial Programme Plan.
Inter alia the programme plan will determine priority areas, set targets and
timelines for the eradication of informal settlements. The plan will have a
five-year time horizon, with annual reviews. Its implementation is expected to
commence during the 2008/09 financial year after the completion of phase 1.

The Rental Housing Tribunal is active and functional in resolving disputes
between tenants and landlords. In 2006, 63 cases were received. The most common
complaints received were for eviction. Due to the rural nature of our Province,
some cases in rural areas are attended to, by the Tribal Council

Most of the complaints were resolved by the secretariat through mediation,
the rest then referred to the tribunal for adjudication. None of the rulings
issued by the Tribunal have been subjected to review. Tribunal consistently
experiences non- compliance with rulings issued.

None compliance is a national issue and therefore in order to ensure
compliance of Tribunal rulings the National Department of Housing has drafted
the Rental Housing Amendment Bill, 2006 which has been sent out for public
information and comments. If this Bill is adopted, it will assist to enhance
compliance.

Housing Planning and Research: Madam Speaker the department has a
Directorate responsible for Housing Planning and Research. Our main purpose
with this directorate is to assist municipalities to build capacity for housing
delivery, accredit potential municipalities identified for housing, conduct
research on housing delivery trends, and develop policies for various
challenges facing us. While the entire department is responsible for the
implementation of BNG, this directorate must disseminate information and
policies to all municipalities, and ensure that municipalities and housing
stakeholders are up to date with trends and developments in housing
delivery.

The department has appointed a service provider to conduct a housing
capacity audit in all the municipalities including Merafong. The report will
assist us to determine which municipalities are ready for accreditation, and
also to inform members of this house about the ability of municipalities to
deliver houses.

Madam Speaker, the department continues to battle with equity issues in
housing delivery, and with the introduction of this directorate, more focus
will now be put on women and youth in housing delivery. The role and importance
of woman was well explained in our speech last year, and I want to reiterate
our commitment to have more women involved in housing delivery. For this
financial year, we are going to develop a database for woman contractors only,
and start by getting women to compete amongst themselves for housing
opportunities. With time we will be in a position to pull those who are
competent into the mainstream to compete with bigger and mainly male dominated
service providers.

As part of our commitment to have woman into housing development, the
National department has formed a Woman working group to assist in bringing more
women into housing, and to provide support to those already in the mainstream.
Our province hosted this forum in April this year, and several projects done by
women were also visited by this forum.

Update on the Two Human Settlement Pilot Projects: Madam Speaker in 2005 the
department introduced two housing pilot projects (Rustenburg and Matlosana),
and informed this house about their progress in 2006. The projects are still
underway with serious delays in Rustenburg owing to late hand over of the site
to contractors due to financial problems for top structure construction, and
NHBRC registration.

The department took a conscious view that no housing development will
proceed if the project is not registered with the NHBRC, especially when such a
project warrants registration. We therefore had to wait for all processes to be
concluded and to allow the NHBRC to satisfy itself and allow the project to
proceed with top structures.

In Matlosana, much has been achieved, and the project is more than 60%
towards completion. As indicated above, there were some workmanship problems
identified, and the department together with the municipality engaged NHBRC to
do quality inspections until the project is complete.

For it is not light Madam Speaker that is needed, but fire; it is not the
gentle shower, but thunder. We need the storm, the whirlwind, and the
earthquake to spur us on!

2007/08 housing delivery approach: Madam Speaker for the 2007/08 financial
year, the department will take full responsibility for all the new projects,
and allow municipalities to complete a lot of old business behind. For the past
years, the department has been allocating housing to municipalities and
allowing them to implement projects. Our exposure and risk has been very high
because the accountability and constitutional mandate remained with my
office.

The department did an analysis, and agreed that for the 2008/2009 financial
year, we must assume our full responsibility for housing delivery and stop
blaming municipalities when delivery doesn't occur at our required rate. We
will therefore allow municipalities to finish old housing projects and close
all projects dating back to 1996.

The table below clearly indicates the housing load currently carried at
municipal level, and the exposure that the department has committed per
municipality.

Analysis of status of housing projects

Bojanala
Planning: 15
Under Construction: 29
Completed: 13
Blocked: 12
Total: 69
To be completed: 56

Bophirima
Planning: 9
Under Construction: 23
Completed: 13
Blocked: 0
Total: 45
To be completed: 32

Central:
Planning: 4
Under Construction: 17
Completed: 15
Blocked: 13
Total: 49
To be completed: 34

Southern:
Planning: 8
Under Construction: 49
Completed: 20
Blocked: 7
Total: 84
To be completed: 64

Tshwane:
Planning: 2
Under Construction: 12
Completed: 5
Blocked: 3
Total: 22
To be completed: 17

Total:
Planning: 38
Under Construction: 130
Completed: 66
Blocked: 35
Total: 269
To be completed: 203

As we intend to complete and close all old projects, municipalities will be
given a chance for the next two years to ensure completion on all the 203
remaining projects as indicated in this table. On the other hand, the
department will continue to implement all new projects in line with Breaking
New Ground (BNG) and provide human settlements in identified areas per
municipality. The following BNG principles will be adhered to for the following
financial year.

* 40 square meter house
* 2 x bedrooms
* 1 x combined living room with a kitchen
* 1 x toilet with shower and hand basin

Owing to the multiple year delivery approach for housing, the department
will commit housing development for the next two years, and ensure massive roll
out of projects in identified municipalities in a faced development approach.
This commitment does not include emergency housing which will be budgeted and
catered for as and when emergencies occur. Municipalities were edged to submit
business plans on these allocations, to enable the department to start with the
planning process. The following allocations are therefore announced with
specific reference to areas were the projects are going to be implemented by
the department in respective municipalities.

Central Region
* Mafikeng: 2 000 units
* Ditsobotla: 2 000 units
* Ratlou: 2 000 units
* Tswaing: 1 500 units

Bophirima Region
* Naledi: 2 000 units
* Taung: 1 000 units
* Molopo: 1 000 units
* Kagisano: 1 000 units
* Mamusa: 1 000 units

Bojanala Region
* Madibeng: 3 000 units
* Rustenburg: 4 000 units
* Moses Kotane: 2 500 units
* Kgetleng: 2 500 units
* Moretele: 2 500 units

Southern Region
* Matlosana: 2 000 units
* Potch: 2 000 units
* Merafong: 4 000 units (excluding allocations by Gauteng)
* Ventersdorp: 1 000 units
* Lekwa Teemane: 1 000 units
* Maquasi Hills: 1 000 units

Total allocation: 39 000 Units

These allocations are also done with an intention to ease budgetary
pressures that the department is currently exposed to. Our current commitments
far supersedes the financial resources allocated to us, and would required a
tight approach to ensure that we succeed in our mandate. We have also begun
negotiations with our National Department for the funding of the 18 000
Merafong housing projects which was started by Gauteng.

Departmental summary of payments and estimates according to programme:

2003/04
Programme (R'000): Audited
1. Administration: 28,160
2. Housing: 317,883
3. Developmental Local Government: 69,952
4. Development and Planning: 4,045
Total programmes: 420,040

2004/05
Programme (R'000): Audited
1. Administration: 34,973
2. Housing: 419,757
3. Developmental Local Government: 62,947
4. Development and Planning: 3,949
Total programmes: 521,626

2005/06
Programme (R'000): Audited
1. Administration: 37,981
2. Housing: 683,942
3. Developmental Local Government: 57,473
4. Development and Planning: 5,955
Total programmes: 785,351

2006/07
Programme (R'000): Main App
1. Administration: 40,979
2. Housing: 677,756
3. Developmental Local Government: 40,585
4. Development and Planning: 14,994
Total programmes: 774,314

2006/07
Programme (R'000): Adj Estimate
1. Administration: 48,575
2. Housing: 760,945
3. Developmental Local Government: 40,849
4. Development and Planning: 22,444
Total programmes: 872,813

2007/08
Programme (R'000): Adj Estimate
1. Administration: 48,064
2. Housing: 794,448
3. Developmental Local Government: 144,536
4. Development and Planning: 12,254
Total programmes: 999,302

2008/09
Programme (R'000): MTEF
1. Administration: 47,298
2. Housing: 923,970
3. Developmental Local Government: 148,365
4. Development and Planning: 12,874
Total programmes: 1,132,507

2009/10
Programme (R'000): MTEF
1. Administration: 51,534
2. Housing: 1,056,145
3. Developmental Local Government: 157,718
4. Development and Planning: 14,667
Total programmes: 1,280,064

Departmental Summary of Payments and Estimates

2003/04
Classification (R'000): Audited
Current:
Compensation of employees: 56,687
Transfer payments: 327,751
Administrative expenditure: 6,787
Stores: 1,262
Professional and special services: 10,569
Other goods and services: 3,597
Unauthorised expenditure:
Total Current Payments

Capital:
Equipment: 1,507
Land and Buildings
Infrastructure: 11,880
Other capital expenditure
Total Capital Payments: 13,387
Total Economic Expenditure: 420,040

2004/05
Classification (R'000): Audited
Current:
Compensation of employees: 62,904
Transfer payments: 425,486
Administrative expenditure: 7,479
Stores: 1,213
Professional and special services: 5,156
Other goods and services: 5,536
Unauthorised expenditure:
Total Current Payments: 507,774

Capital:
Equipment: 1,427
Land and Buildings:
Infrastructure: 10,425
Other capital expenditure: 2,000
Total Capital Payments: 13,825
Total Economic Expenditure: 521,626

2005/06
Classification (R'000): Audited
Current:
Compensation of employees: 65,095
Transfer payments: 676,610
Administrative expenditure: 9,158
Stores: 1,557
Professional and special services: 6,080
Other goods and services: 8,182
Unauthorised expenditure:
Total Current Payments: 766,682

Capital:
Equipment:
Land and Buildings
Infrastructure: 18,669
Other capital expenditure
Total Capital Payments: 18,669
Total Economic Expenditure: 785,351

2006/07
Classification (R'000): Main App
Current:
Compensation of employees: 75,386
Transfer payments: 673,981
Administrative expenditure: 7,030
Stores: 3,104
Professional and special services: 7,766
Other goods and services: 7,047
Unauthorised expenditure:
Total Current Payments: 774,314
Total Economic Expenditure: 774,314

2006/07
Classification (R'000): Adj Estimate
Current:
Compensation of employees: 76,934
Transfer payments: 760,491
Administrative expenditure: 9,419
Stores: 2,959
Professional and special services: 10,549
Other goods and services: 8,993
Unauthorised expenditure:
Total Current Payments: 869,345

Capital:
Equipment: 204
Land and Buildings
Infrastructure:
Other capital expenditure: 3,264
Total Capital Payments: 3,468
Total Economic Expenditure: 872,813

2007/08
Classification (R'000): MTEF
Current:
Compensation of employees: 107,023
Transfer payments: 857,397
Administrative expenditure: 11,006
Stores: 2,901
Professional and special services: 6,778
Other goods and services: 8,078
Unauthorised expenditure:
Total Current Payments: 993,183

Capital:
Equipment: 6,119
Land and Buildings
Infrastructure:
Other capital expenditure
Total Capital Payments: 6,119
Total Economic Expenditure: 999,302

2008/09
Classification (R'000): MTEF
Current:
Compensation of employees: 135,610
Transfer payments: 966,843
Administrative expenditure: 11,586
Stores: 3,026
Professional and special services: 8,970
Other goods and services: 6,284
Unauthorised expenditure:
Total Current Payments: 1,132,319

Capital:
Equipment: 188
Land and Buildings
Infrastructure:
Other capital expenditure
Total Capital Payments: 188
Total Economic Expenditure: 1,132,507

2009/10
Classification (R'000): MTEF
Current:
Compensation of employees: 151,055
Transfer payments: 1,093,317
Administrative expenditure: 12,354
Stores: 3,824
Professional and special services: 9,491
Other goods and services: 6,832
Unauthorised expenditure:
Total Current Payments: 1,276,873

Capital:
Equipment: 3,191
Land and Buildings
Infrastructure:
Other capital expenditure
Total Capital Payments: 3,191
Total Economic Expenditure: 1,280,064

Conclusion

May I say, in the words of Rev Jesse Jackson "If in my low moments, in word,
deed or attitude, through some error of temper, taste or tone, I have caused
anyone discomfort, created pain or revived someone's fears, that was not my
truest self.

If there were occasions when my grape turned into raisin and my joy bell
lost its resonance, please forgive me. Charge it to my head and not to my
heart. My head – so limited in its finitude; my heart, which is boundless in
its love for South Africa my home. I am not a perfect servant. I am a servant
of my people doing my best against the odds. As I develop and serve, be
patient. God is not finished with me yet."

As with a major building project, it takes a great team to give a practical
expression to the artist's view of a beautiful house! A great team brings all
essential elements of a complete house together! I wish to extend my personal
and sincere thanks to the following:
* Colette Anthony-Choklingo – "the great facilitator": Thanks for believing in
me so passionately, serving me so loyally for 12 years, and last but not least,
doing your work so enthusiastically and with excitement all the time! I know
that you are able to do all this because of the team you lead as Chief of Staff
and therefore I am equally grateful for your team!
* Mr I Motala – "the quiet diplomat": without your expertise, the project
housing delivery and an effective local government system wouldn't have been
possible! Thanks for encouraging me and our teams to remain focussed during
ravaging storms of our detractors!
* The Chief Directorates – Developmental Local Government, Development and
Planning, Housing and Corporate Services – "the 4 Drivers": I have been blessed
to work alongside a great winning team such as yourselves! Your Godly wisdom
and unique insights have made us stronger!
* The Board, CEO and Staff of the NWHC – "Breaking the Barriers of the Past?" –
I know you feel the world crumbling under your very feet! I know you are
experiencing adversity and trials never imagined but be rest assured I
appreciate your support!
* To my wife Shirley, our four precious gifts happily joined by our adopted son
Ipeleng – "the big 6": You amaze me more every day when you without question
heal my battle-battered heart to rise another day and serve the people of the
North West! Being your husband and dad to my five children is the greatest
reward God ever gave to me!
* Colleagues in EXCO – "Team NW": Thanks for your unwavering enthusiasm and
constant encouragement!
* Last but not least, the Honourable Premier BEE Molewa – "Real-world faith":
Thank you for your steadfast coaching, mentoring support and persevering
leadership! Thanks for modelling the real world to me!

The work of providing shelter and an effective local government system that
we undertook is dedicated to our people's integrity; humility; love; patience
and hope which leave an indelible impression on my life! I am eternally
grateful for being your servant! I am committed more than ever before to you my
countrymen – committed to helping you to live your best life! Our greatest days
are ahead!

For it is not light that is needed, but fire; it is not the gentle shower,
but thunder. We need the storm, the whirlwind, and the earthquake to spur us
on!

I thank you!

Issued by: Department of Local Government and Housing, North West Provincial
Government
10 May 2007