Theme: Improving Public Infrastructure and creating employment opportunities to make Gauteng work better
Honourable Speaker
Honourable Premier of Gauteng
Colleagues in the Executive Council
Honourable members of the Provincial legislature
Distinguished guests
Members of the Fourth Estate
Ladies and gentlemen
Honourable Speaker, it is auspicious that we convene this important sitting of the Legislature, unveiling the progress outlined in the Annual Reports of 2010/11 on the eve of Heritage Day. It is therefore fitting to reflect on the words of the father-of-our-democracy and former President, Nelson Mandela.
"When our first democratically-elected government decided to make Heritage Day one of our national days, we did so because we knew that our rich and varied cultural heritage has a profound power to help build our new nation. We did so knowing that the struggles against the injustice and inequities of the past are part of our national identity; they are part of our culture. We knew that, if indeed our nation has to rise like the proverbial phoenix from the ashes of division and conflict, we had to acknowledge those whose selfless efforts and talents were dedicated to this goal of non-racial democracy."
In the words of our Premier, Ms Mokonyane, “we were humbled by the support and patriotism displayed by our people during the hosting of the FIFA 2010 World Cup. Once again we proved to the world that we have the capacity and ability to organise and host events of international stature. We earned our mantle of being a Gateway to Africa and the Home of Champions”. The Department of Infrastructure Developmentplayed a significant part in this success story through the upgrades of Sinaba Stadium and HM Pitje Stadium.
Moving forward after the landmark year of 2010, and as is common in developing countries such as ours; the key challenge is not necessarily going to be around delivering new infrastructure, but more on sustainable operations afterwards in terms of the maintenance and servicing of such infrastructure. One of the Department’s critical focus areas for 2010 / 2011 has been the intensified repairs and maintenance programme of our Province’s socio-economic infrastructure.
Achievements in line with the Departments Key Strategic Objectives
With reference to the provision and maintenance of public infrastructure to promote development of the less developed parts of the Province and redress economic disparities in order to prolong the life of public infrastructure, improve accessibility and keep equipment in a functional state, the Department rendered unplanned maintenance which included day to day maintenance and emergency maintenance for the Gauteng Department of Health and Social Development, as well as Agriculture and Rural Development, thus ensuring better access to services for the people of Gauteng.
Improved quality of education is one of the key outcomes for this administration. This relies heavily on the provision of requisite public infrastructure. In contributing to this particular outcome, the Department, through its Capital Works projects completed 13 Education projects which comprised of the construction of new schools as well as refurbishment of existing schools.
This achievement is in line with one of DID’s key strategic objective to expand infrastructure facilities to keep abreast of the growing demand for infrastructure and serve socio-economic needs,
With regard to the Enhancement of the coordination of infrastructure across the Province, contributing to the outcome “Sustainable human settlements and improved quality of household life”, the Department continued with the implementation of the Government Immovable Asset Management Act of 2007 (GIAMA). Furthermore, the Department through its vesting process succeeded in obtaining approval for 456 applications by the Provincial State Land Disposal Committee. One of the key requirements of the GIAMA, is the compilation of an accurate property asset register. To this effect the Department efficiently and effectively maintained 100% of its Asset Register and 45% of the GPG Asset Register.
We are intensifying the verification process. And are pressing ahead with speed in the implementation of Market Related Rentals which began in June 2010;
üFurthermore with regard to Devolution of Rates and Taxes grant, the Department continued to pay the rates and taxes of state owned properties. An amount of R211 million was spent from these allocations;
Honourable Colleagues,
Effective collection of Rental revenue remains a key priority for our department. The progress we are making can be bettered through efficient mechanism so that we double our capacity in this regard. This is a priority area in this financial year.
The Department’s contribution to “Decent employment through inclusive economic growth” was realised through the implementation of 17 Community based projects which amongst others include, Lillian Ngoyi Market, Thulasizwe School, Rietvallei School, Sharpeville Hall, Germiston Hospital, Natalspruit Hospital, Lakeside Multi Purpose Community Centre (MPCC), June 16 Memorial Site and the National Youth Service Programme.
Job Creation
Our programmes round employment creation and poverty relief are guided by the injunction of the State of the Nation Address by President Jacob Zuma, and the directives by Premier Mokonyane in her State of the Province Address. In both presentations, 2011/12 has been identified as a year of Job Creation through small, medium and micro enterprise (SMME) development, Infrastructure Development, the EPWP and the focus on outcomes rather than specific programmes. In this regard, the Department has put in place robust plans to ensure that these outcomes are realised. ePWP), job creation tally is on course.
Honourable Speaker, it is noteworthy to mention that our department is making significant progress with regard to the above. During 2010/11 financial year 4 530 employment opportunities were created for young people, 1 976 women and 36 people with disabilities, bringing the total to 10 496 temporary jobs that were created.
I ask the House to indulge me as I recount the story of Ms Joyce Tshabala (featured on the header of the annual report pages and on pg 10), a 49 year old mother of two, who’s got a hungry boiler to feed, she ascends to the top of the boiler with such energy making the job look effortless. Joyce grasped the opportunity presented to her to be an assistant boiler operator for Chris Hani Baragwanath Hospital in 2002. Inspired to learn more about her field, she furthered her training in boiler operating and became a qualified boiler operator in 2004.Joyce is a beneficiary of the departments Expanded Public Works Programme (EPWP).
Our Department would only have succeeded in its mandate when there are more Joyce’s in Gauteng. R207 million has been allocated to the EPWP programme and projects such as the National Youth Services.
Our commitment to contribute to the overall national EPWP job creation tally is on course. A total of 122 940 job opportunities will be created through EPWP in Gauteng are projected for the 2011/ 2012 financial year. The EPWP youth complement of beneficiaries is 59,714. The total number of women participants is 34,144 and, the People Living with Disabilities make up a total of 1,208 participants. These jobs will be created across 880 projects and spread over a total of 7,700 employment days or a full-time-equivalent of 230 work days. This includes a CETA accredited training and skills development complement of 7,890 trainees across the projects.
Overview of the service delivery environment for 2010/11
Whilst reflecting on the achievements of the 2010/2011 Financial Year, which are indeed considerable, there is still a need to mitigate external factors, which have negatively impacted on the Department’s ability to deliver against its targets, these include:
Devolution of rates and Taxes grant
With regard to the Devolution of Rates and Taxes grant, late submission, incomplete or inaccurate Municipal information and technical challenges in the electronic payment systems, non-receipt of some Municipal billing schedules and incomplete Municipal valuation rolls;
The delay in the interface between the operations of the Integrated Electricity Asset Management System (IE Works) and the Basic Accounting System (BAS) hindered the payment process.
In order to mitiagate this situation, the Department has set up a joint task team with Municipalities to ensure that data is up to date. A Debt Management Committee has been established to address the challenges related to billing by the Municipalities. Further to this, Treasury has also been roped in to address this challenge.
Shifting Gear
Honourable Speaker, it gives me great pleasure to announce to the House that DID has made great strides moving from a qualified audit opinion in the 2009/10 Financial Year to the audacious attainment of an Unqualified audit opinion for the 2010/11 Financial Year. The Department has decisively begun to shake of its mantle as a new or fledgling Department, signifying a shift in gear, which heralds our commitment towards the attainment of a clean audit in the 2012/13 financial year.
Fruitless Expenditure
Notwithstanding our achievements, there is still a need to closely monitor the systems we have put in place to ensure that concerns highlighted by the Auditor General which includes fruitless expenditure amounting to R1 822 000. This is mainly as a result of interest paid on invoices not paid within 30 days. An improvement in respect of payment processes has been achieved if compared with the amount disclosed in the previous financial year. Based on the fact that the client Departments did not always pay on time, a further R10 381 238 was incurred on behalf of the Department of Health and Social Development and R864 387 has been incurred in respect of the Department of Education. To mitigate this situation, Infrastructure funding is being ring-fenced by Treasury to ensure capital expenditure be funded appropriately and payment processes are improved. This resulted in a decrease of accruals.
Spending Trends
Honourable Speaker it pains me to inform the House of the 89% spending of our R1 314 038 budget allocation. This translates into an under spending of R146 843. In the main, this is apportioned to Departmental projects being slowed down to ensure that sufficient funds are available for payment of compensation of employees. Following the split of the erstwhile Department of Public Transport, Roads and Works, the Department has not been resourced appropriately taking into consideration the absorption of the trading accounts into the Department.
Moving Forward
DID is committed to ensuring that its activities are underpinned by sound governance structures and the implementation of effective internal controls in all areas of operations.
We have overhauled our Supply Chain Management System, conducted a head count to verify all Departmental staff pursuant to the split of the disestablished DPTRW, finalised the Departmental structure and developed an Anti-Corruption Strategy, which is continuously applied.
We look forward to the new Financial Year 2011/12 with hope and excitement, fuelled by the amount of ground already covered in the year under review. History has taught us lessons to help us prepare for the future characterised by improved service delivery, good corporate governance and capacity building. It is upon these virtues that a future competitive and competent social infrastructure will be developed, providing skills and employment to the most marginalised section of our society as we stride toward a better life for all.
Appreciation
I would like to express my gratitude to the Auditor General and the Audit Committee, who continue to provide invaluable support and direction throughout the year and ensure that the Department remains focused on maintaining sound financial, internal controls and risk management systems. Finally, I would like to thank the Head of Department (HOD), Ms Maggie Modipa for her administrative stewardship of the Department.
It is an honour for me to be deployed to and be given the responsibility of guiding the service delivery programme of the Department of Infrastructure Development. I commit myself, the Senior Management of the Department and all our valued employees across the Province to overcome these audit and other challenges; and to work with determination to achieve our service delivery mandate.
Sixteen years into our democracy we are working together with the people of Gauteng to do more. We are “proud of our past and confident of our future”.
It is in this spirit of deepening democracy, consolidating service delivery excellence, delivering on the “people’s contract” through the creation of decent employment, skills development and poverty relief that I introduce to this Honourable House, the 2010/11 Annual Report for the Gauteng Department of Infrastructure Development.
Thank you.
