Honourable Acting Speaker,
Honourable Premier,
Honourable Members of the Executive Council and the Legislature
The Chairperson of SALGA-Free State and the Executive Committee Executive Mayors, Mayors,
Speakers,
Chief Whips and Councillors Marena le Dikgosi,
Heads of Department and Municipal Managers Veterans and stalwarts of our liberation, Struggle distinguished guests,
Comrades and friends.
Acting Speaker, it is always very appropriate that we present these budget vote speeches during the Human Rights Month. This continues to remind us that our work as government is centred on restoring the basic human rights of the citizens of this province.
This is also the year of the 100th anniversary of the 1913 Native Land Act, an Act that altered tremendously the wellbeing of our people in all respects, giving rise to economic dependence which led to the status quo. This Act was described by President Zuma in the 2013 State of the Nation Address as “... an Act which turned black people into wanderers, labourers and pariahs in their own land”.
Acting Speaker, not only did the Act breed poverty, it also heightened racial separation, socially and physically, and ensured a well-structured deprivation of resources for Africans, thus creating the legacy of inequality that we now are bound to redress.
In the previous financial year we made some policy pronouncements in our quest to support, strengthen and monitor all municipalities in the province informed by government‟s directive to ensure that municipalities meet their mandate to provide basic services to the people. We also pronounced on our plans and strategies to accelerate the provision of sustainable human settlements.
Today, we are here to account to the House on the progress we have made in implementing Outcomes 8 and 9 as illustrated through the National Medium Term Strategic Framework.
I will henceforth provide an overview of our noted successes during 2012/2013 financial year and some of the main programmes and projects we plan to embark on during the 2013/2014 financial year towards creating a responsive, accountable, effective and efficient local government system in the Province and building sustainable human settlements.
On local governance
Acting Speaker, consistent with Local Government Turn Around Strategy (LGTAS), we continue to address a number of problems as identified within our municipalities ranging from issues of poor governance and accountability, weak financial management, high vacancy rates in the top critical posts and, in a number of instances, an inability to deliver a core set of critical municipal services efficiently and effectively.
The following key issues have been identified, which, if addressed, will ensure the achievement of the overarching goal of a responsive, accountable, effective and efficient local government system:
- The provision of improved access by communities to basic services such as water, electricity and sanitation
- The deepening of democracy through the implementation of a refined Ward Committee Model in all municipalities, thereby strengthening participatory governance
- The strengthening of the administrative and financial capability of municipalities
- Improved coordination and strengthened cross-departmental initiatives.
All municipalities and sector departments in the province, as well as 311 ward committees, participated in the development of Municipal Integrated Development Plans (IDPs), at the same time ensuring alignment with LGTAS.
Following the IDP assessment process in July 2012, the IDPs of 14 municipalities were rated high, and 10 were rated medium. We are happy that in 2012/2013 there are no municipalities that were rated low, showing an improvement in the credibility of our IDPs. A skills gap analysis in relation to the IDP development process will also be done in Thabo Mofutsanyana, Xhariep and Phumelela as part of the 35 identified municipalities in the country.
The department has been supporting municipalities in updating their LED strategies. We have partnered with the Independent Development Trust and South African Local Government Association (SALGA) to develop a framework for the organisational structure of LED unit in municipalities, in order to assist them in the functionality of this unit.
We succeeded to provide support to all municipalities on the implementation of the Municipal Systems Act as amended (MSAA) through district workshops. We will be partnering with all our municipalities to roll out monitoring and evaluation system within municipalities.
On municipal infrastructure and free basic services
The national policy prescribes that free basic water can now be provided only to indigents.
Acting Speaker, a total of 599 623 (97%) of the targeted 615 909 households in our province has access to a basic level of water as at end January 2013. The backlog is mainly in the rural areas of QwaQwa within the Maluti-a-Phofung Local Municipality where there is a balance of 14 341 households that needs to be provided with water in the remainder of the 2012/2013 financial year and the upcoming 2013/2014 financial year.
Additional 1 049 electricity connections were provided during 2012/2013.
Acting Speaker, of the targeted 615 909 households in the Free State 594 502 (97%) has access to a basic level of sanitation as at the end of January 2013. One of the key challenges facing the province in this regard is the rural areas of QwaQwa within the Maluti-a-Phofung Local Municipality, where there is a backlog of 30 000 households. By January 2013, 11 220 of the 30 000 households were provided with sanitation with the balance of 18 780 households outstanding.
Acting Speaker, all formalized stands in our municipalities have access to refuse removal. We call on our municipalities to improve the frequency of refuse removal to avoid illegal dumping.
In the 2011/2012 Municipal Financial year our municipalities spent R7, 4 million (90%) of the allocated R841, 1 million. For the current municipal financial year ending 30 June 2013, an amount of R1, 02 billion was allocated to our province for Municipal Infrastructure Grant (MIG) projects.
An amount of R412, 2 million was spent by municipalities as at end January 2013. We are concerned that this represents 40% expenditure in the middle of municipal financial year. We want to urge municipalities to accelerate their expenditure in this regard.
Acting Speaker, as at end June 2012, 8 411 temporary employment had been created by municipalities through MIG. Of those employed 788 were women, 1 676 youth females, 2 240 men, 3 688 youth men and 19 disabled people.
We also made R20 million available for urgent infrastructure interventions in the
2012/2013 financial year which were spent in the following municipalities:
- Setsoto: 595 septic tanks were cleaned in Moemaneng and an emergency water pipeline between Marquard and Clocolan was constructed.
-
Maluti-a-Phofung: the project for the 1,1km paved roads in Bolata Village in
QwaQwa is under construction. - Matjhabeng: the amount of R12, 6 million was allocated for the provision of water and re-pegging of 1 424 stands in Thandanani - 2010 Village and construction will start soon.
Acting Speaker, in this financial year, our province has been allocated R129, 8 million from the Intergraded National Electricity Programme funds to connect electricity to 7 435 households and to install bulk infrastructure. An amount of R1, 07 billion is allocated for the implementation of MIG projects in the 2013/2014 municipal financial year.
Municipalities are encouraged to increase the employment of women during the implementation of MIG projects; progress in this regard will be closely monitored by the department.
By the end of December 2012, 3 083 jobs were created through the MIG programme ensuring that 357 women, 659 youth females, 748 men, 1 313 youth males and 6 disabled persons were temporarily employed. It is foreseen that these figures will increase to approximately 7 000 jobs before the MIG financial year comes to an end in June 2013.
We have provided R15 million for urgent infrastructure interventions during the
2013/2014 financial year.
On community works programme
Acting Speaker, as part of our response to tackle poverty and provide livelihood support to poor households, the Community Works Programme (CWP) was adopted as a key initiative to mobilize communities towards providing regular and predictable work opportunities at the local level. Our province has the following sites where CWP has been implemented:
- Ngwathe
- Metsimaholo
- Moqhaka
- Mangaung
- Tokologo
- Naledi
- Mohokare
- Nala
- Setsoto
- Phumelela
- Maluti-a-Phofung
- Letsemeng, and
- Matjhabeng
The programme will be extended to the remaining 7 municipalities in 2013/2014 financial year and beyond. The CWP, which is an employment safety net, targets the poor who are unemployed or under-employed by providing work opportunities for 2 days per week at a stipend of R67 per day. This intervention has already created a total of 16 046 jobs during the period under review.
On clean cities, towns and villages programme
Acting Speaker, the Tokologo, Maluti-a-Phofung and Moqhaka municipalities are
already implementing the “Clean Cities, Towns and Villages Programme Beyond
2010”. Complementary to this project, the department has forged an informal partnership with the Clean Free State Campaign, a project that has been initiated by the private sector towards cleaning and greening the Free State province. The campaign is currently focusing on the Mangaung Metro and the Matjhabeng Municipality. We call on all municipalities to participate in this programme.
On municipal financial viability
We are partnering with SALGA and our municipalities on the „Operation Patala‟ campaign to improve on the collection of consumer debt. This is already yielding results as the consumer debt has already reduced by 32% due by government departments. We call on all our communities to pay for services consumed to ensure financial stability of our municipalities.
Municipalities must adopt standard by-laws which will promote the broadening of the municipal revenue base. We have appointed a team of professionals and deployed them in 8 municipalities towards improving their service delivery capacity, especially in relation to financial management.
Acting Speaker, conditional limited financial assistance was also provided to municipalities in financial distress during 2012/2013; specifically to Xhariep, Letsemeng, Mohokare, Naledi, Nala, Setsoto and Dihlabeng. A Capacity Building Programme is planned in conjunction with the University of the Free State, aimed at improving the capacity of Municipal Audit Committee Members and officials in Internal Audit Units.
The department is also partnering with Local Government Sector Education and Training Authority (LGSETA) for an Internship Programme for Internal Auditors whereby Interns will be placed in 17 municipalities over a 10-month period.
On disaster management
Acting Speaker, during the year under review the province was besieged by a number of disaster incidents which have a detrimental impact on our communities. We are in the process of rehabilitating the township of Tlholong in Kestell after the destruction of over 70 houses by tornado and thunderstorms. We are also engaged in a similar process in Amelia in Sasolburg where about 1 200 households were affected by the disaster.
As a province we need to develop the system and campaigns of preventing and mitigating disasters because global warming is a reality. We have provided in this current budget an amount of R7 million to strengthen the Provincial Disaster Management Centre.
We would like to express our appreciation to all the stakeholders who continue to play a critical role during disaster in the province, especially members of the Provincial Disaster Management Advisory Forum.
On land use management and spatial planning
Acting Speaker, in the 2013 State of the Province Address, the Honourable Premier referred to the landmark decision of the Constitutional Court that vests spatial planning competency in municipalities, and that they should act as the "body of first instance".
The Spatial and Land Use Management Act has been passed by Parliament and it gives impetus to our process of developing the Provincial Planning Bill to replace the old and outdated legislation for land use management in our province. This Act facilitates vesting of planning powers in municipalities.
We will work with our municipalities to establish Municipal Planning Tribunals. In the interim, the Land Use Advisory Board will continue to execute its responsibility until there is sufficient capacity to this Municipal Tribunals.
On traditional leadership
Acting Speaker, in ensuring that communities are informed of the type of government services that are available to them, and in cooperation with other sector departments and Chapter 9 institutions, the House of Traditional Leaders embarked on a number of community outreach programmes.
The preparation for the building of palaces for Marena a Maholo Mota and Mopeli are progressing well, and on-site assessments have been conducted by architects and quantity surveyors.
One of the critical challenges facing traditional leadership in the Free State is the proliferation of illegal initiation schools and the deaths of a number of initiates due to lack of coordination between relevant stakeholders. This is one of the key areas that we will, in partnership with the Department of Health, focus on during the coming financial year.
Coupled with this challenge is the illegal allocation of land by some Traditional Leaders. As the department we will engage with The Free State House of Traditional Leaders to address this issue to arrive at a lasting solution.
In order to enable traditional leadership in the province to do their work effectively and efficiently, we will fast-track the finalization of the Bill for the Free State Local and Provincial Houses of Traditional Leaders.
We will assist and fast-track the acquisition of land for Batlokoa ba Mokgalong traditional community. Acting Speaker we are working with the National Department of Traditional Leaders to review the tools of trade that we can provide to Traditional Leaders to enable them to do their work.
We further want to congratulate Morena Theki Moloi for obtaining a 100% attendance certificate during training of Traditional Leaders despite his age of 94. The community will increasingly be engaged on the preservation of traditional culture and customs, and also to advocate for the declaration of heritage sites.
On cooperative governance and service delivery protests
Acting Speaker, the fundamental principle of cooperative governance is that we are as a collective, responsible to ensure an effective, efficient, and responsive local government system within our province. Our municipalities must be centres of community activism and effective governance, and must reflect the attributes of a society hard at work to improve the conditions of life of all Free State citizens.
In 2012/2013 we experienced increased violent community protests in our province. Although most of these violent community protests are directed to municipalities, most of the services that communities demand such as schools, houses, clinics, roads and so on are not the competency of municipalities.
It is therefore, imperative for all government departments and state owned enterprises to work with municipalities in resolving serviced delivery challenges. We also acknowledge that there are service delivery challenges that are facing municipalities directly, such as water and sanitation.
The issue of demarcation is a very emotive matter amongst our communities and has also been a matter of public protests in recent past. We would like to urge our municipalities to consult communities and all relevant stakeholders when this issue of demarcation is being discussed.
Communities' right to protest is enshrined in our Constitution, but violent protest that destroy private and state properties cannot be tolerated and must harshly be dealt with by law enforcement.
Department of Human Settlements
Acting Speaker, over the last few years there has been a clear shift in the way that the State is conceptualizing human settlements delivery and its role in poverty alleviation and social and economic development. We have committed ourselves to establish viable, socially and economically integrated communities which are situated in areas allowing convenient access to economic opportunities, health, educational, and social amenities and within which South Africa‟s people will have access on a progressive basis to:
- A permanent residential structure with secure tenure, ensuring privacy and providing adequate protection against the elements; and
- Basic services including potable water, adequate sanitary facilities, waste disposal and domestic electricity supply.
The Human Settlements Vision 2030 states that “by 2030, most South African will have affordable access to services and quality environments. New developments will break away from old patterns and significant progress will be made in retrofitting existing settlements”. Key to this process is the formalization of informal settlements, the upgrading of services and the installation of the necessary social infrastructure to make these areas viable and suitable.
On upgrading of informal settlements
During 2012, we finalised the appointment of service providers for the creation of 26 915 sites in 19 areas of the province. The process is already underway to finalise development plans regarding these areas. Ours is to strive to meet Outcome 8 targets of upgrading informal settlements by 2014.
In line with informal settlement upgrading processes, 9 047 sites were planned and surveyed in various areas of the province; specifically in the following areas:
- Petrus Steyn (Mamafubedu): 600 sites
- Reitz (Petsana): 800 sites
- Harrisminth (Mahaseng and Tsele): 1 461 sites
- Bethlehem (Bakenpark): 1 421 sites
- Sasolburg (Mooiplatz): 2 614 sites
- Lindley: 1 001 sites
- Maokeng: 150 sites
- Rammulotsi: 1 000 sites.
Basic municipal infrastructure was installed in 7 193 sites in the following six municipalities:
- Dihlabeng: 831 Sites
- Mangaung Metro: 3 685 sites
- Moqhaka: 2 000 sites
- Maluti-A-Phofung: 50 sites
- Kopanong: 222 sites
- Phumelela: 405 sites.
Acting Speaker we will install internal reticulation services in 10 391 sites during this financial year.
On capacity of department, municipalities and contractors
The Honourable Premier in his 2013 State of the Province Address indicated that the main focus of the Department of Human Settlements during 2013 will be to consolidate and complete 9 655 incomplete and outstanding houses under various human settlements projects. This will provide adequate shelter to beneficiaries who have been waiting for their houses for a very long time.
Acting Speaker, In an effort to improve the department‟s technical and implementation capacity in a number of areas, we have appointed NURCHA to deal with the verification of projects and also to provide technical support to the department.
In addition, E‟, tsho and Mafuri consultants have been appointed to enhance the department‟s engineering capacity. We also commenced with a process of establishing a reliable and credible database for contractors, which will assist the department to select capable contractors to minimise the risk of incomplete projects.
In an attempt to improve our business processes and enhance efficiency of the department, we will be piloting online housing beneficiary management with State Information Technology Agency (SITA). This is the first step towards improving the overall business processes within the department in order to serve our people better.
A total of 20 local municipalities (including the Mangaung Metropolitan) were provided with technical capacity and ongoing support to use the Housing Subsidy System (HSS) on-line, ensuring the successful approval of each application form within the reasonable turnaround time for each entity.
Acting Speaker, the department has undergone a process of strategic planning and introspection and has arrived at what heralds a new way of doing things. We have come to the realisation that a more hands-on approach is necessary. We have also decided to intervene directly where municipalities are experiencing difficulties or where there is a failure to deliver on our promises to our communities.
One such example is Dihlabeng Local Municipality where the department assisted the municipality with funding for the upgrading of bulk infrastructure. This project will serve as a springboard and foundation to address bulk water challenges across the province. It pleases me to report to this house, Acting Speaker that the future for this municipality looks promising with this intervention.
On municipal accreditation
On municipal accreditation, we honoured our commitment to ensure that the Mangaung Metro Municipality achieves a level 2 accreditation, enabling the Metro to manage the administration of all housing programmes. During August 2012, the Capacity Compliance Accreditation Panel (CCAP) assessed the Metro‟s capacity to meet the criteria for the relevant level of accreditation. To this end, a recommendation to accredit the Metro on Level 2 accreditation is currently awaiting the decision of the (national) Minister of Human Settlements.
Acting Speaker, you will recall that last year we committed to continue to support Metsimaholo, Matjhabeng, Dihlabeng and Moqhaka Local Municipalities in attaining readiness for level 1 accreditation. Acting Speaker it pleases me to report to the house that Pre-accreditation Information Sessions were conducted with these municipalities to clarify the requirements of the accreditation process as well as how the application will be managed.
On land acquisition
Acting Speaker, the year 2013 marks the 100 years of the passing of the Land Act of 1913 in our country. It was through this unjust Act that our people were robbed and dispossessed of their land. As a result, scarcity of suitable and appropriately located land continues to be a constraint on our capacity to make a decisive dent on the housing backlog.
In this regard, during 2010, the department concluded an Implementation Protocol with the Housing Development Agency (HDA), mandating the HDA to facilitate planning in relation to the identification, acquisition and assembly of well-located land suitable for human settlement developments.
We also transferred funds to the HDA to enable them, within their legislative mandate, to acquire land for human settlements development on behalf of the province (as part of the provincial land acquisition pipeline to enable the department to do appropriate forward planning).
On socio–economic amenities
In realizing the concept of human settlements as places where we can „live, work, play and pray‟ as envisaged in the new human settlements agenda, the issue of amenities becomes critical. We have accordingly completed a multi-purpose hall in Warden. We will continue working with other sister departments including the Department of Sports, Arts, Culture and Recreation with the view to making provision of amenities a reality.
On social and rental housing
Acting Speaker we have allocated 402 Institutional Subsidies towards the first phase of the Brandwag Social Housing Project in Mangaung, which is aimed at developing a total of 1 051 rental housing units for households that earn between R1 500 – 00 and R7 500, who would ordinarily not afford to participate in the private rental housing market.
The first phase of the project which will yield 402 rental units is due to be completed by March 2013. To date, 112 units of Phase 1 have attained occupational completion and 50 of said units have been allocated to tenants and more units from Phase 1 will be gradually allocated to qualifying tenants.
On community residential units and hostel upgrading programme
In partnership with the Harmony Gold Mines and the Matjhabeng Local Municipality, the Department embarked on a project at Masimong through the Community Residential Units (CRU) Programme that will provide rental accommodation to 461 households.
The project is almost complete and is the first of its kind to be undertaken by the Department. About 348 units have already been allocated to tenants and the remaining 113 units will be available for occupation at the end of March 2013.
We are in the final stages of the feasibility studies in respect of the two hostels in
Mangaung i.e. Silver City and Dark City, and one hostel in Matjhabeng, the G-Hostel.
The feasibility studies have been finalised for Zamdela Hostel 4 in Metsimaholo and a suitable contractor will be appointed in due course to commence with the demolition of the old hostel and the construction of new CRU units.
Acting Speaker, the second phase of the Brandwag Social Housing project which is aimed at yielding 495 rental units has commenced while units from Phase 2 will gradually become ready for allocation to tenants – thus bringing the total number of units to 897. The last phase of the 1051 units is due to commence this coming financial year –thus 154 Institutional Subsidies have been set aside for the said phase.
A total of 1200 Institutional Subsidies will, during the 2013/2014 and 2014/2015 financial years be allocated to two (2) Social Housing Projects at Vogelfontein in Dihlabeng and Intabazwe in Maluti-A-Phofung. The latter two (2) projects are true examples of mixed housing projects that comply with all requirements of the Breaking New Ground (BNG) plan.
Acting Speaker, the tripartite partnership among the Department, Matjhabeng Local Municipality and Harmony Gold Mines, will embark on the redevelopment of Merriespruit Hostel in Virginia and President Steyn Hostel in Welkom, Matjhabeng.
Institutional Subsidies have been put aside for two projects under the Housing for Special Needs Programme that are due to commence in the 2013/2014 financial year, namely:
- Bokahosane ba Bana for orphaned and abused children in Kroonstad; and
- Mphatlalatsane in Viljoenskroon for the Severely Mentally Handicapped.
On land restitution and special housing programmes
Acting Speaker, although we have committed ourselves to construct 1 400 units for the Land Restitution beneficiaries who lodged claims in terms of the Restitution Act of 1994, we have experienced unforeseen challenges in this regard such as families refusing to relocate to new areas identified by the municipalities coupled with lack of infrastructure in some of the other areas, thereby enabling us to build only 337 in the following areas:
- Thaba Nchu (Basotho ba Herschel): 71 units
- Hennenman: 22 units
- Bethany: 119 units
- Lindley: 9 units
- Wesselsbron: 4 units
- Senekal: 2 units
- Hoopstad: 1unit
- Blesbokfontein (Bultfontein): 15 units
- Warden: 94 units.
The department will continue to collaborate with the Department of Rural Development and Land Reform in completing this programme.
Acting Speaker, in bringing some level of rejuvenation to the distressed area of Van Stadensrus, we have allocated 650 houses in the greater Naledi area with 150 set aside for Van Stadensrus. Due to the non-availability of serviced sites, the department was however only able to build 40 houses in Van Stadensrus.
In realising these sites, we have appointed a service provider who will finalise the installation of a new innovative alternative sanitation technology, the Vacuum Sewer System, for 350 sites. The acquisition of land in the area is also being finalised to accommodate this development.
The commemoration of the 1913 Native Land Act centenary will see us handing more than 7 435 title deeds, registered under various pieces of legislation, over to the affected households during this year towards security of tenure.
On finance linked individual subsidy programme (FLISP)
Acting Speaker, we will, with 250 subsidies, further fast track the implementation of the Finance Linked Individual Subsidy (FLISP) programme through projects in Viljoenskroon, Intabazwe and Vogelfontein. This programme provides housing assistance for households earning between R3 501 and R15 000 to access loans to purchase or build houses up to maximum value of R300 000.
The province, together with the National Housing Finance Corporation as already alluded to above, will be rolling out the FLISP to assist households who earn too much to qualify for government "free housing".
As the honourable Premier stated in his 2013 SOPA, the rolling out of this programme as an urgent priority, will also reduce the unlawful buying and selling of subsidised houses at reduced rates while helping to create communities that pay for their services, and a formalised secondary property market that allows for upward mobility of the traditional beneficiaries of fully subsidised housing.
On rectification programme
Acting Speaker, we will demolish two roomed houses over the MTEF. For the
2013/2014 financial year, focus will be on Mangaung - Phelindaba and Heidedal, Bothaville in Nala Municipality, Bronville and Henneman in the Matjhabeng Municipality and Schonkenville in Ngwathe Municipality. This is to ensure that our people‟s dignity is restored.
Furthermore we will, during the MTEF, rectify the one door houses in Bluegumbosch in Maluti-a-Phofung and other identified areas.
On closing open toilets
Acting Speaker, the closing of open toilets in Moqhaka Municipality is a matter that cannot be overemphasised. We closed all the 2 087 open toilets in Viljoenskroon. We are currently busy with Kroonstad and Ventersburg in Matjhabeng Municipality. It is our intention to complete the work in the 2013/2014 financial year.
Conclusion
In conclusion Acting Speaker, I want to take this opportunity to thank Premier, Ace Magashule for his leadership and guidance, Members of the Executive Council for their continued support, as well as Members of the Portfolio Committee and the Legislature, the House of Traditional Leaders and the entire Traditional Leadership; the Heads of the two Departments and staff, all municipalities, SALGA Free State and my organisation, the African National Congress.
Let me also thank my family for always being by my side. On this note, Acting Speaker, I hereby present the budget votes of the Department of Cooperative Governance and Traditional Affairs, and the Department of Human Settlements as appended.
Ke a leboha!
