Madam Speaker
Honourable Premier
Members of the Executive
Chief Whip of the ruling party
Members of the Provincial Legislature
Beloved people of Gauteng.
Hope for the people of Gauteng has never been as high as it is today. Gauteng is the home of hope for the hopeless. The increase in Gauteng's population is a testimony of hope that exists here and continues to draw people to this province.
As we look back in the last 20 years, hope has given birth to new human settlement areas such as Diepsloot, Cosmo City, Simunye, Lakefield, Olivenhoutbosch and so on. The hope for highly efficient municipalities that deliver services better and smarter has given birth to three metros in Gauteng.
Our desire to inspire and to give hope to people of Gauteng has resulted in us splitting the Department of Local Government and Housing into two departments, and this annual report thus becomes the last annual report for the department Local Government and Housing. Realising that more needs to be done over and above all our significant achievements, as a provincial government we have established the Human Settlements and Cooperative Governance and Traditional Affairs as separate departments, working together with all other GPG departments to bring services and change faster to the citizens. This in itself gives hope for a better, quicker and responsive public service in Gauteng.
A home gives rise to community, society and a nation. Only 20 years into the democracy, our people are still facing a serious shortage of houses. The sad legacy of apartheid left us with urban sprawl of informal settlements. In Gauteng alone we have over 400 such informal settlements and our housing programme is geared towards the eradication and formalisation of these settlements, which predominantly affects the African majority. In the last 20 years, we have built more than half million homes and brought hope to people who had been living in informal settlements.
Seeing that a huge necessity still exist to provide affordable and quality houses in Gauteng, in the next 20 years of democracy we will continue to build more houses for our people, and build them more faster. So there is undoubtedly hope for home seekers that they will receive houses from this government
In the year under review, a total of just under 30 000 human settlements opportunities were provided by our department to the people of Gauteng. Under the eradication of informal settlement programme we built 17 180 houses and serviced 5539 stands. Under social and rental housing interventions we achieved the following;
- 440 units - Social and Rental programme
- 835 units - Community Residential Unit programme
- 599 units - Backyard Rental programme
Madam speaker, the mixed housing development programme is one of key policies in human settlements of ensuring that we deracialise and integrate our communities to make them more non-racial and cohesive. With this policy direction, the hope of a non-racial, non-sexist, democratic and free South Africa is being realised. Reversing apartheid spatial planning means we must build communities that are integrated, living in settlements that have access to all basic services and amenities and ideally are closer to places of employment and economic opportunities.
The mixed housing development is also linked to FLISP, which is a programme that responds to the so called 'gap' market. This is the market that earns too much to qualify for RDP houses and earns too little to qualify for bank finance in the form of mortgage bonds. These are people earning between R3 500 to R15 000 per month. In response to this market, we have come up with the Finance Linked Individual Subsidy Programme (FLISP). This programme is done in conjunction with the major banks where as government we will pay a top-up fee to push a person to a threshold where he or she will qualify for a mortgage bond.
The maximum amount of money that FLISP will pay is R87 000, and really this is a significant and remarkable contribution by government towards the ownership of homes by individuals in the gap market. The Department of Local Government and Housing in Gauteng launched this programme last year in November in Botlhabela Extension in Alexandra.
In the year under review mixed housing development yielded the following achievements:
- 2 016 serviced stands,
- 1 209 houses
- 286 units
Urban Renewal Programmes (URP) continue to be our flagship project which reports on infrastructure renewal and broader developments in targeted townships within Gauteng.
The objective of this programme will be realised through cooperation and partnerships with the three spheres of government, various line function departments and the private sector. URPs are also aimed at stimulating local economies and to create sustainable jobs that are expected to alleviate poverty and improve the quality of life of these communities. The department is currently implementing Urban Renewal projects in Alexandra, Bekkersdal, Evaton and Winterveldt.
In Alexandra, achievements include the following:
- Bohlabela Extension project which is expected to yield 232 units upon completion. Progress achieved by March 2013 stands at 65%.
- Linbro Park: the project is still continuing, with the 7 offers to purchase land having been submitted to property owners
- The hostel redevelopment programme is continuing with the M1 Hostel (for approximately 1 400 units). A professional team has been appointed and currently in the process of compiling the precinct plan and Urban Design Framework with the 1st draft presented to stakeholders in February 2013.
- The construction of the M2 Nobuhle Hostel Phase 2: (78 units) is complete and awaiting handover to City of Johannesburg Housing which is delayed because of the allocation matters.
- The construction of the Mental Clinic project (proposed name Joseph Makgalimele Clinic) is continuing with construction at 80% completion with most buildings at roof level.
The achievements in Bekkersdal renewal programme include:
- Extension of water network within the informal settlement
- VIP toilet project totalling 6 284 in the informal area
- LED projects completed include: brick making plant; farmer support; and Local Business Support Centre (LBSC).
- East and West Clinics extension and renovations
- Supply and erecting of 5 new high mast lights as extension of the lighting in the informal area and reinstatement of lighting to the 12 existing high mast lights;
In the year under review the Evaton Renewal programme has seen the following developments:
- Sebe Road Construction - to construct a double carriageway including associated infrastructure in Residensia - Zone 6
- Easton Road storm-water and streets project which involves upgrading of storm-water system on Easton road and the construction of two adjacent roads
- The Bulk sewer project - Phase 1 totalling approximately 2.2 km of sewer network has commenced to service the project area.
- Additional works at Mafatsane project are underway to upgrade the building in line with the requirements of a Thusong Service Centre.
- Mixed Housing Programme (Evaton Estates): Planning and preplanning activities for mixed housing programme are underway. Land has been acquired in the Eastern precinct within the Midvaal area
- Rental Housing: Planning and preplanning activities for rental tenure in Ext. 3 are in progress.
- Housing Upgrade - Phase 2: Planning and Beneficiary uptake are in progress for approximately 150 beneficiaries.
Being the latest of all the urban renewal programmes in Gauteng, the following achievements have been noted in Winterveldt:
- The project has solicited buy-in from the private sector on the development of the economic hub
- The project has delivered 122 serviced stands and 489 houses to date
- The City of Tshwane has commenced with the installation of bulk services.
- About 3 000 temporary jobs were created and the economical hub will amongst others contribute towards creating more permanent jobs.
The challenge of housing is huge in Gauteng, and government alone cannot overcome this challenge. The private sector is key in ensuring that we create space and access to rental accommodation. However the rental sector has traditionally been characterised by disputes and conflicts between tenants and landlords. As government we needed to restore hope in this sector. In supporting an amicable relationship between the two parties and ensuring cooperation, the department established the Rental Housing Tribunal in 2001.
Overall, the Tribunal has received and resolved 18 210 cases. To date the programme has established 11 operational Information offices around Gauteng Local Municipalities, and it continues to provide free support and service. The programme has formed ties with Germiston, Springs, Johannesburg, Pretoria, Randburg, Krugersdorp, Roodepoort, and Boksburg Magistrates courts for the enforcement of Tribunal rulings.
The Tribunal also established Circuit Courts at Tshwane, Boksburg and Germiston where tribunal hearings are conducted. Its brand has been marketed around Gauteng through workshops, radio interviews and newspaper articles. In the 2012/13 financial year the programme received 2 456 cases; attended and resolved 1,675 files informally, through mediations and Tribunal hearings. For those who are considering the rental option, rest assured that even there, government support is available and free to them.
Procurement of well located land to build more houses is always one of our priorities as government. For the financial year under review, the department planned to acquire 15 properties but managed to conclude agreements for only 6 portions amounting to some R44, 2 million however, offers were signed for a further 5 portions and valuations are pending for a further 3 properties and 1 property was not acquired as it was sold to a private developer at a high price. The acquisition of these pockets of land gives hope that more houses will be built, and this is the hope our people are holding on to.
Local Government and Traditional Affairs Branch
Madam speaker, local government remains the closest form of government in South Africa. Each and every citizen has to access eat least three of the basic services provided by local government, be it water, sanitation, electricity, refuse removal and so on.
Realising the importance of growing and supporting our municipalities to realise Gauteng city region as envisaged in vision 2055, it became imperative to give local government a focused approach by making it a standalone department. We are very assured that this approach will provide much needed support to municipalities and help in shaping the direction that the municipalities must take to realise Vision 2055.
Municipal finance support is one the key interventions that is central in assisting municipalities to function better. This intervention manifests in various programmes, one of which is Operation Clean Audits. Operation Clean Audit (OPCA) targeted support to the disclaimed and qualified Municipalities in order to improve the outcomes of the AG Audit. The OPCA Targeted Support is a hands on support project focusing on assisting municipalities that received disclaimers and qualifications in their audit opinions.
The project commenced with the collation and analysis of documentation (i.e. IDP's, SDBIP's, Budgets, Annual Financial Statements, Management letters and Audit Reports) from Randfontein, Nokeng, and Kungwini for planning purposes. Key focus areas which required critical support were identified in each municipality. Hands-on assistance and resources were then deployed to the municipalities.
An Audit matrix was then compiled per municipality and OPCA Project Steering Committees were established in each municipality to track progress made in implementing the issues highlighted in the Audit Matrix. Particular attention was given to those issues in the matrix that have a significant influence on the audit outcome.
OPCA Provincial Coordinating Committee (OPCA PCC) was established to monitor the implementation of Municipal and Provincial Plans to achieve Clean Audits. The team consists of representatives from the DLG&TA, Gauteng Treasury, SALGA, AG office and Municipalities. The OPCA Provincial Coordinating Committee (PCC) meets every second month to monitor the progress made by Gauteng municipalities and provincial departments on the implementation of OPCA.
Madam speaker, the government debtors strategy was created to facilitate for the payments of debtors owed to the 10 Gauteng Municipalities by National Departments; Gauteng Provincial Departments and Parastatals, with primary focus on Departments of Housing; Health and Social Development; Education; and Infrastructure Development. Facilitation happens through the convening of quarterly Government Debtors' meetings, where resolutions are taken to address some of the challenges experienced in the implementation of the Government Debtors' Project. The resolutions are then implemented in the Municipal Working Sessions.
The three primary strategic objectives of the Government Debt Management project are:
- Establishing a method for the payment of arrears to Municipalities owed by various Government Departments, both nationally and provincially.
- Ensuring that debtor information on Government accounts is cleaned and corrected on the Municipal finance systems.
- Facilitating regular payment into the future for Municipal services rendered.
As a result of this intervention, departments are keeping current accounts serviced on monthly basis while working on clearing the arrears accounts. This is a phenomenal milestone, and such revenue will be ploughed back to the communities for quality and better service delivery. Total amount billed for the financial year 2012/13 is R1.8billion (R1, 793,858,994.00), and total payments made or the financial year 2012/13 amounted to R1.4billion (R1 485 693,923.00). The total percentage of revenue collected versus outstanding debt in 2012/13 financial year is 80%.
The Municipal Infrastructure Grant MIG allocation for the 2012/13 financial year for Gauteng province was an amount of R484,655 million. The expenditure was mainly in the following categories: Water, Sanitation, Roads & Storm water, Street/ community lighting projects. An amount of R55, 476 million was budgeted on other infrastructure components such as: Parks, Multi-purpose sport centre/fields, Taxi ranks, Solid waste disposal sites, Cemeteries, Multi-purpose community halls, Fire fighting, Disaster Management, Municipal health services and Libraries.
The department is implementing several rehabilitations on existing waste water treatment works (wwtw) which are multiyear in nature and some are still on-going. The implementation of these targets is contributing to the department's objective of providing infrastructure and access to basic services to all communities in all municipalities. In this way the municipalities are responsive to the need to expand the infrastructure to accommodate the growing population that needs better services in an effective and accountable way, contributing to an efficient local government system.
The following are some of the achievements in terms of bulk infrastructure projects being upgraded or rehabilitated in the province:
- Upgrade of Ekangala WWTWs which is proceeding well and progress on construction was above 75%. This project is expected to be completed in 2013.
- The upgrade on Percy Stewart WWTW construction, completion of the first phase was scheduled for 2013. Civil works completed, some electrical and mechanical work is still outstanding.
- In Reitspruit WWTW - short term/ interim repairs on pumps & electrical components were done and in operation currently. A 48 hours detention tank was built to accommodate the sewer overflow.
- Meyerton WWTW- the project for the de-bottlenecking of the plant was almost complete, preliminary designs for the upgrade have already been prepared and procurement of contractor was awaited.
Some of the achievements in local government in the year under review include:
- As part of promoting public participation 507 ward committees were established in all municipalities.
- Seven municipalities (3 metros and 4 local municipalities) have established intergovernmental relations (IGR) Units and have aligned to the IGR framework.
- Phase 1 of the plan for the integration of Balfour into Gauteng was prepared. Communication on this matter between Gauteng, the Department of Cooperative Governance and the Presidency took place.
- Community Development Workers (CDWs) dealt with a total of 12229 cases in 2012/13.
- 406 (80%) of ward committees in Gauteng are functional. Four quarterly reports on functionality of ward committees have been received. The indications are that ward committees meet on monthly and quarterly basis. Ward committees attend workshops and deal with service delivery matters.
- A total of 278 officials and councillors completed training in critical and scarce skills.
- 151 officials and councillors enrolled and trained on MIDP, PMS and M&E
- Forty four percent (44) of women and 25% youth from a target of 100 people have been trained in critical and scarce skills.
- Ten (10) municipalities (3 metros and 7 local municipalities ) are rolling out free basic services to indigent households
- All the municipalities are implementing Solid Waste Management in formal and informal settlements
- Five (5) municipalities (3 metros and 2 districts) have disaster management centres and have applicable disaster management frameworks.
As we celebrate our heritage in this month of September, we are reminded that traditional leadership is one of the oldest forms of leadership in Africa. We remember the great kings and queens of Africa like Shaka, Manthatise, Moshoeshoe, Sekhukhune and so on. Part of celebrating our heritage requires that we recognise, acknowledge, respect and support traditional leadership and its associated customs, cultures and rituals.
In Gauteng we have two traditional councils, namely Amandebele Ba Lebelo and Amandebele Nzunza Sokhulumi. These traditional councils were approved by the Tolo Commission and they comply with legislative prescripts and participate in ward committees and in the municipal council. In the year under review, 20 Traditional Council members were trained in implementing regulations on the traditional leadership legislation.
Madam speaker the work that we do speaks for itself. Indeed our work has proven that the hopes of our people are being realised every day. As we march gallantly to the next 20 years of democracy, we shall make sure that we deliver more and that we keep this hope alive. We have demonstrated to the people of Gauteng that indeed kuyasheshwa la.
I thank you.
