Honourable Speaker and Deputy Speaker
Honourable Minister of the National Department of Public Works, Mr Thulas Nxesi
Honourable Premier and Members of the Executive Council
Chief whip of the Majority party & Leaders of Opposition parties
Honourable Members of the Gauteng Legislature
Honourable Members of Mayoral Committees of Municipalities
Senior officials of the Department
Leaders of the Gauteng Faith Based Organisations
Distinguished Guests
Members of my Family and Comrades
Members of the Media
The People of Gauteng
Ladies and gentlemen
Hon Speaker, thank you for the opportunity to table the Gauteng Department of Infrastructure 2015/16 Budget vote as we celebrate notable milestones in the history of our Nation.
This year we celebrate the 60th anniversary of the Freedom Charter and we are reminded of the call by the Congress of the People that the people shall govern and we are indeed governing. We also commemorate the 39th anniversary of the June 16 1976 Youth day and we salute the heroes and heroine young leaders who contributed to the democracy and freedom we enjoy today including the fact that indeed the doors of culture and learning have been opened for all.
As an activist government, we have as a collective during the past twelve months visited and engaged with our citizens from all corners and sectors of Gauteng. They spoke about their admiration for those who fought and died for freedom and the need to preserve their memory and serve our people with honor. We listened and we have turned around service delivery and infrastructure development with our people in honor of many unsung heroes and heroines of our struggle for freedom and democracy.
In honor of all the Youth of 76 and of today, the Hon Premier of Gauteng handed over the completed state of the art June 16th Memorial Acre and Youth Institute to the people of Gauteng in the Central Corridor, in Soweto in particular.
During this financial year, the Premier will hand over the completed Boipatong Memorial Acre and Youth Centre to the people of the Southern Corridor in Sedibeng. This has been delayed by challenges related to the non-payment of local sub-contractors by the main contractor and on the commitment to ensure the establishment of the local brick making project that will supply us with bricks for construction of infrastructure in the Province.
In the continued spirit of celebrating the Freedom Charter this year, we will complete the Kagiso Memorial Acre and Sports Facility, as well as the Women's Living Heritage Monument in Tshwane. This project is aimed at celebrating late and living heroines of our struggle for emancipation of people of SA in general and it is for socio economic empowerment of today's women in particular.
Hon Speaker, this budget encapsulates the wishes of the people of Gauteng and it is our contribution to the execution of Transformation, Modernisation and Re- industrialisation (TMR) program of the Gauteng City Region (GCR). The TMR has been found to be very much in line with the National Development Plan by the Hon Minister Radebe of the Presidency when he attended the Special Extended Gauteng Executive Council Lekgotla last month, led by the Premier.
Our budget has increased by 8% from R1,9 billion in the 2014/15 financial year to R2,05 billion for the 2015/16 financial year and is appropriated into R437, 8 million for Administration, R1,2 billion for Public Works Infrastructure and R368, 8 million for the Expanded Public Works Program. Over and above this budget, we will also implement infrastructure projects for Client Departments with a total budget of R3, 7 Billion.
This budget has increased from the past financial year, demonstrating confidence on improved Gauteng Department of Infrastructure Development (GDID) performance, especially by departments such as Education with a budget allocation of R2,2 billion, Health with R1,3 billion and Social Development with an allocation of R85 million. Furthermore, GDID will be managing projects for Gauteng Department of Agriculture and Rural Development (GDARD) for R7, 9 million and GDRT for R5, 7 Million.
Hon Speaker, confidence in the improved performance of GDID is also demonstrated by what the Premier said in his budget vote speech last Thursday that; "The GDID, has increased its technical capacity and this has led to a major turnaround in spending and delivery of infrastructure projects such that 99% of our infrastructure budget was spent by the end of March 2015". We also take serious what the Premier said about the historic poor performance of the Department and hence we have turned around this history of poor performance. It’s not easy but we are hard at work to bring about a new performance culture in the Department.
There is light at the end of the tunnel. Those who have eyes can see. We pity those who want to dwell in the past with a pessimistic approach. This does not mean there are no challenges, there are, what is important is to address these head on. One of the historic areas of poor performance that is of concern to us, is the delayed completion of the northern pipeline at Suikerbosrand that has taken many years to be completed and has negatively affected the operation of the nature reserve. There is a plan to accelerate the completion of the project by end August. The two Departments and MEC’s are in discussion on this matter and will decide on the way forward.
Hon Speaker Our Vision remains that of becoming "a leading sustainable infrastructure provider and facilitator that positions Gauteng as a globally competitive City Region contributing to inclusive economic growth and decent work for all".
To achieve this vision and to contribute to the GCR TMR vision, we have a 5 year strategy with defined strategic goals that have been aligned with the TMR program to guide our implementation. The goals are: sustainable infrastructure, accelerated service delivery, organisational development for building state capacity, optimising state assets for economic development and supporting entrepreneurs, empowering communities through job creation and integrated planning. Hon Speaker, allow me to unfold how we are responding to the TMR program.
On Radical Economic Transformation, the ANC government seeks to revitalise and mainstream the township economy by supporting the development of township enterprises, Cooperatives and SMME’s that will produce goods and services that meet the needs of township residents. To respond to the ANC’s call to expand youth economic participation, we are implementing a more comprehensive and integrated Phase 3 Expanded Public Works Programme (EPWP) and CWP together with all GCR role players.
EPWP is a nationwide intervention aimed at re-orienting public sector spending in favor of infrastructure projects that contribute to addressing the triple challenges of unemployment, poverty and inequality. The Deputy Minister of Finance, Hon Mcebisi Jonas who visited Gauteng two weeks ago, on the National Siyahlola Program indicated that Gauteng is doing very well on the CWP as it is alleviating poverty amongst the poor. Led by COGTA, we will upscale this program.
Over the past financial year, we as a GCR collective in partnership with the non-state sector, created a total of 126 104 work opportunities, including the National Youth Service Learnership Program and Zivuseni reloaded. Whilst some of the affluent members on the other side of the house look down upon work opportunities aimed at poverty relief amongst the poor, one single mother from Orange farm stood up at the portfolio committee stakeholder engagement and expressed her gratitude to government for taking her and her children as a single mother out of poverty.
The EPWP participants acquire technical skills in construction and maintenance and they contribute to the public assets. We encourage them as part of our exit strategy towards the end of the project duration to establish their own SMMEs or co-operatives such that they can employ other unemployed people and transfer their skills. We are working with the Military Veterans and other participants to resolve late payment of stipends through a more effective payroll system and to help them find sustainable employment or business opportunities.
In this financial year 2015/16, all sectors, especially the infrastructure sector, have to accelerate creation of EPWP employment opportunities to ensure achievement of 1 million employment opportunities by 2018/19, as pronounced by the Premier. Through our entrepreneurial skills development program linked to the EPWP, we incubate SMME’s, including those owned by women, youth and people with disabilities and we are up-scaling this program due to the needs of our communities.
Oliver Reginald Tambo, once said; “A nation that does not invest in its children and youth has no future and does not deserve one”. The GCR collective is also on track in facilitating the creation of 500 000 sustainable employment and entrepreneurship opportunities for unemployed youth especially young graduates by 2018/19. Since the early launch of the Gauteng Tshepo 500 000 program up to end March 2015, 9 169 youth are have been registered with the Gauteng job portal and of these, 1 265 youth are now permanently employed by private sector companies who have partnered with Gauteng Government. This happens through direct employment placement by matching existing vacancies with young job seekers. In this financial year, we as GCR will ensure creation of 50 000 decent sustainable jobs and accreditation of 1 000 youth entrepreneurs.
Various Gauteng Departments and Municipalities working together with SETA’s are also contributing to this program that is aimed at giving hope to youth who are struggling to find work. Some of these registered youth are currently on skills development and training programs to address skills deficiencies as a barrier to employment. We are inviting more CEO’s of private sector companies to absorb young people who are already registered, to skill and employ, them so that we accelerate this program in this financial year.
Hon Speaker, Gauteng citizens have said that, for freedom to be real for all, they too would like a share of the Gauteng economy. We listened.
It is in this context that we are economically empowering historically disenfranchised groups through our Broad Based Black Economic Empowerment program which is yielding results, including localisation and the preferential procurement program. In 2014/15, we spent over R1,6 billion of goods and services on Black businesses, including Colored and Asian owned businesses. We procured 82% of goods and services from Black-owned companies, 37% from youth-owned companies and 4% from companies owned by people with disabilities.
This year, we will sustain this achievement and include companies owned by Military Veterans who fought for freedom as they also deserve a better life.
We have re-opened our supply database for emerging contractors with CIDB Grade 4 to ensure that we procure from more township suppliers. We have also created a database for contractors with lower CIDB levels 1, 2 and 3 in order to involve more township enterprises in all development corridors. We, together with municipal leadership have successfully intervened with local contractors in Garankuwa, Westhoven, Tembisa and other communities to ensure economic inclusion of local business people.
All this work will help us to ensure that we continue to procure more than 75% of our goods and services from local companies and 30% from township enterprises in particular. In collaboration with one of our maintenance materials suppliers, we have already helped with the establishment of a factory in the Tembisa township to manufacture some of construction materials we need.
In the same way, the linen, brickwork, steel windows required for the additional construction projects at the new Thelle Mogoerane Hospital are sourced from township entrepreneurs in Thokoza, Vosloorus and other townships. We intervened with women-owned co-operatives in Westhoven who are now producing uniforms for our maintenance staff. Hon Speaker, we are no longer just talking about the Township Economy Revitalisation, we are implementing our strategy.
The ANC Government remains committed in the management of the Gauteng Property Portfolio in a manner that serves the people of Gauteng to enhance socio-economic development. The Premier has delegated us the responsibility of being the custodian of all the Gauteng government owned property. However, various departments remain with the responsibility of the use of these properties.
We are at an advanced stage to complete the GPG Immovable Asset Register and we have to date verified 99% of assets. We continue with the ownership rectification of government properties. This work will result in improved and proactive utilisation of assets and reduce losses and wastage, effective management of assets to deliver infrastructure objectives such as optimising revenue generation and socio-economic benefits. We now have a draft strategy on property management which will be soon presented to the Executive Council for approval. The strategy will recommend, amongst other things, the establishment of the Property Management Agency which will assist us to optimise the economic value of the GPG property portfolio.
This year we shall join the National Department of Public Works in the Operation Bring Back of stolen properties campaign. We will also have to improve our concerted effort to rollout Market Related Rentals.
On Radical Spatial Transformation, the ANC Government remains committed to change the spatial patterns we inherited from apartheid to integrate human settlements. In partnership with the Gauteng Planning Division, we have completed the first phase of the Gauteng Integrated Infrastructure Master Plan that will guide infrastructure development in the GCR.
We are working on the establishment of the Planning House which will be done through a Public Private Partnership (PPP). The Gauteng Planning House will create capabilities to better manage the use of land for spatial planning and public infrastructure development and will allow us to visualise where development in the short, medium and long term will occur.
We are ready with the plans to resuscitate the Kopanong Government Precinct project that will help us revitalise the Johannesburg Inner City and better accommodate GPG departments. This project has historically been postponed due to insufficient resources and will now proceed as a PPP. These projects will be show-cased at the upcoming Gauteng Infrastructure Investment Conference planned for 16 and 17 July 2015.
Hon Speaker, infrastructure development is a catalyst to sustainable socio-economic development and it has a potential to improve the quality of life of our people in a most fundamental way. Infrastructure development therefore has remained one of the key priorities of the ANC government. To contribute towards Accelerated Social Transformation, in 2014/15, we over achieved completion of most planned education infrastructure projects on time, within budget and with good quality.
This includes 9 new schools, including the Magaliesburg boarding school, 23 restorative repairs of old schools, construction of 9 Grade R classrooms and 22 fencing projects to ensure the safety of learners and educators. We have revised the education infrastructure prototypes to meet the new norms and standards.
Hon Speaker, together with the Gauteng Department of Education, we have introduced the concept of the smart classrooms. In January this year, the Deputy President, Mr Cyril Ramaphosa, the Premier, Mr David Makhura and MEC Lesufi unveiled the first smart classrooms at the six pilot schools in Tembisa as a step towards paperless education. The MEC for Education has committed to accelerate this program in this financial year.
We also achieved most health infrastructure projects within budget, on time and with good quality. Not only was the Natalspruit Hospital completed within the first 100 days of the current administration as promised, but also other critical projects such as 2 TB Wards, a blood bank project, as well as 4 additional oxygen and vacuum pumps in neo natal and maternity wards.
We have also completed the prototypes for ideal clinics which will be implemented to support the roll-out of the NHI. We did not do well with the GDARD projects since only 6 of the13 planned projects were completed. This is an area that needs improvement in this financial year.
Our people have complained in the past that our projects take too long, costs escalate and that some contractors and sub-contractors are not paid on time. We have listened and have committed to improve this situation because we do not want to contribute to the collapse of SMME contractors in particular. We have intervened in projects, such as Boipatong Memorial and Magaliesburg boarding school where main contractors had not paid sub-contractors. We will ensure that legal contracts between main contractors and sub-contractors are strengthened to stop this exploitation. We will continue to improve integrated planning through the IDMS alignment model and interaction with client departments.
To accelerate social infrastructure development, we shall now award projects within 45 days after advertising. It will take us only 21 days to finalise contractual matters, before the site is handed over to the contractor. We will ensure that we appoint competent service providers and that those that perform poorly will be blacklisted.
We are improving Inter Governmental Relations with Client Departments and local government in an effort to improve on the identification and confirmation of land ownership, approval of drawings and EIA’s.
In this financial year, we are already on site, busy with 287 construction projects. In the Central Development Corridor, on Education Infrastructure, we are building seven new schools on behalf of the GDE. These are a Primary and Secondary School in Braamfischerville, Everest Primary School, Julius Sebolai School, Mayibuye Primary School, Moses Kotane Primary School and Nokuthula Special School. We are refurbishing 67 schools, building 77 new Grade R Classrooms and fencing eight schools more for safety of our learners.
On Health infrastructure, we are on site providing maintenance to 40 health facilities in this corridor. These range from alternative energy technologies such as the combined use of gas, diesel and electricity power at the Chris Hani Baragwanath Academic Hospital. We are installing new lifts at the Charlotte Maxeke Academic Hospital, doing refurbishment and maintenance work at the Bheki Mlangeni Hospital, Lilian Ngoyi Hospital, Finetown Clinic, Sinethemba Clinic, right up to Stretford and Orange Farm Clinics in the South of this corridor.
In the Northern Development Corridor, we are building five new schools. These are: Garankuwa Primary School, Rethabiseng Primary School, Nellmapius Secondary School and a second Secondary school in Olievenhoutbosch. We are also refurbishing 57 old schools, fencing six schools, building 43 Grade R classrooms, installing septic tanks at six schools and renovating 13 Community Development Centres on behalf of the Department of Social Development.
On Health Infrastructure in this corridor, we are renovating over 20 health care facilities that are part of the NHI program. This is over and above the refurbishments of health care facilities work at George Mukhari Academic Hospital, Pretoria Hospital and the Tshwane District Hospital. These are some of the 19 health care facilities we are working at.
In the Eastern Development Corridor, on Education Infrastructure we are building four new schools namely, the Chief Albert Luthuli Primary, the Menzi (Langaville) Primary, Roodekop Primary and Thinasonke Primary school. We are also refurbishing 38 existing schools.
On Health Infrastructure, we are refurbishing the Daveyton Main District Hospital and 30 community health care centres. The community of Daveyton have requested for a hospital instead of the initially proposed pathology facility, due to high demand by the growing population. The Department of Health listened and will accommodate this request.
In the Western Development Corridor, we are building 20 Grade R Classrooms, refurbishing four schools, fencing three schools and doing maintenance and further refurbishments in 28 health facilities.
In the Southern Development Corridor, for Education Infrastructure, we are constructing two new schools namely, the Bophelong Secondary and Setlabotsha Primary school. We are also building 23 Grade R classrooms, fencing six schools, refurbishing and maintaining 34 health facilities.
Hon Speaker, the ANC Government remains committed to entrench a national democratic society that needs public representatives, public servants and leaders of other sectors who will remain true to the values of loyal service to the people.
Therefore, to contribute to the Transformation of the State and Governance, we now have an approved organisational structure which is in line with the IDMS. We have during 2014/15 employed 225 personnel with the aim of building state capacity to perform and to reduce vacant posts.
We must reduce the vacancy rate of 32% and we plan to employ 216 more skilled personnel this year for the full roll out of the IDMS to help us complete all projects on time, within budget and of required quality. We also need to achieve employment equity especially with women and people with disability. We continue to provide adequate learnerships, internships and bursaries to develop internal capacity.
To demonstrate our seriousness to the reduction of fraud and corruption, we have signed the fraud prevention plan, we conduct anti-corruption campaigns, cases of corruption are investigated and acted upon. We have improved our risk management and established forensic services to detect and deal with fraud and corruption.
Of the 38 cases of misconduct, 10 were for fraud and these staff members were dismissed. We will strengthen this work to clean the image of the Department. Vetting of Supply Chain Management officials and financial disclosures are underway. We look forward to maintain unqualified audit results with less matters of emphasis for the year 2015/16. We must improve paying service providers in 30 days or less and the Provincial Treasury is assisting us to do this.
This includes improvement in the payment of rates and taxes on time. We have maintained promotion of participatory governance through ongoing stakeholder engagements, annual open days and well managed inter-governmental relations meetings with local government and MINMECs.
On the Modernisation of the economy, the ANC Government seeks to fundamentally change the way state institutions relate to society. We are contributing significantly to creating a smart and green economy. The Gauteng Provincial Government has developed the Gauteng Energy Mix Strategy in order to contribute towards renewable energy generation. Our role is to implement the Green Agenda in Gauteng infrastructure.
We have 77 boilers in Gauteng hospitals, fueled by coal and now a program is underway to replace these with gas and diesel boilers. The existing natural gas infrastructure will provide the backbone for delivering natural gas to the hospitals. Half of Gauteng Government buildings will use green technologies by 2019. We also are undertaking the following:
The Roof-top Solar PV Rollout Program is the energy efficient project emanating from integrated demand management plan. We will be rolling out this project in this financial year. We are appointing a Transactional Advisor to develop the procurement documents by next week.
The Energy Efficiency Retrofit Program, has changed the world of lighting forever, delivering major savings in energy. The Gauteng Government, in partnership with ESKOM, has conducted energy audits for all GPG’s 237 clinics with a view to replace lighting at all health care centres.
We have replaced 105 381 lighting systems with LED’s out of 282 333 across the Province, which accounts for 37.3%. These lights have an extended lifespan which will decrease maintenance costs.
We will also install 37 smart-meters at six of our hospitals to measure energy.
The Gas Supply Program involves migration from coal and diesel to gas for 21 hospitals with 24 boilers. We aim to initiate the conversion of all the balance of the 53 coal powered boilers within this financial year. This too will be done through a PPP process.
The Tri-generation Program, provides the ability to simultaneously generate power and steam for heat and cooling from the combustion of natural gas. Six hospitals are earmarked for this program. The project is registered with the National Treasury as a PPP and implementation will start in this financial year.
Hon Speaker, in contributing to Modernising the Public Service, we have reviewed our ability to deliver quality public infrastructure. We have recently conducted an assessment of challenges and limitations faced by the department. As a response, we have deployed the Infrastructure Delivery Management System (IDMS) to help the Department to deliver more effectively and efficiently, in a sustainable manner.
We now have a fully-fledged Engineering Services Directorate for Health Infrastructure, headed by a Chief Director, a capacity that vastly reduces our dependency on consultants and the associated costs. We have taken innovative steps to ensure that our operations are modern, reliable and responsive. We are implementing the GP-IDMS process and fit-for-purpose business processes and systems.
We have established a payment office, amongst other key outputs, it will assist us to standardise payment times, streamline the delegation of authority signatories for payment and actualize our commitment to 30 days payment.
In conclusion Hon Speaker, it is evident that it is only when we listen and work with our people that we can truly change their lives for the better and make freedom mean something to them. As Government we should be there to lift them when they are down and should also be there when they celebrate their victories.
I am thankful to the Almighty for giving us the wisdom to be able to lead team GDID. We are grateful to the Premier for his leadership and guidance. To colleagues in the Executive Council, for your sound advice and counsel, the Chairperson of the Portfolio Committee, Ms Lindiwe Lasindwa and Hon members for your sharp oversight and support and to Comrades in the governing party for your sound advice and counsel.
I also extend a word of appreciation to the HoD, Bethuel Netshiswinzhe and team GDID for your resilience and co-operation.
To my family, for your love and understanding for our demanding work schedule.
To all Stakeholders we have engaged with and the Gauteng Faith Based Organisations for your involvement and prayers. We thank all our guests & stakeholders for sharing this day with us.
My most profound gratitude goes to our fellow citizens of Gauteng for making it possible for us to serve you and I am humbled by the fact that together we are changing the lives for the better and taking the Gauteng City Region forward.
I believe it is said better by Chief Albert Luthuli in his biography, Let My People Go:
“To give flesh and blood meaning in the South African setting, to such words as democracy, freedom, liberty. If the Charter is examined it will be seen that freedom means the opening up of the opportunity to all South Africans to live full and abundant lives in terms of country, community and individual.”
I thank you.
