The State of the City Address by the Executive Mayor of the City of Ekurhuleni, CLR Mondli Gungubele delivered at the Germiston City Council Chambers

Theme: Strengthening Social Maturity by Advancing Social Cohesion in Pursuit of a Prosperous City

Madame Speaker, Clr Patricia Kumalo;
Chief Whip of Council, Clr Robert Mashego;
Members of the Mayoral Committee
City Manager, Mr Khaya Ngema and Senior Management Team;
Chairpersons of Council Committees;
Honourable Fellow Councillors;
Leaders of Business, Labour and Civil Society;
Members of the media;
My Wife and friends;
Distinguished guests,
Residents of Ekurhuleni.

My task today is to reflect on the State of the City of Ekurhuleni. The task of improving the state, in which Ekurhuleni is, belongs to all of us – councillors, administrators and residents of this vast City, all three million and more of us.

In making the reflection, I am indebted in part to the hundreds of Ekurhuleni residents who took part in our SOCA Tips Campaign. The aim of the Campaign was to solicit public input into the speech I am delivering today. Indeed, the people of Ekurhuleni did not disappoint. They let us into their thinking, and gave us plenty of suggestions through the website, print and social media.

The theme context

We are presenting our State of the City Address under the theme: Strengthening Social Maturity by Advancing Social Cohesion in Pursuit of a Prosperous City. We have opted for this theme because it is our contention that Ekurhuleni is indeed a socially mature city. This city, which is constituted of the nine towns, associated townships and 119 informal settlements, is today a ‘place of peace’ because its residents have lived through and endured years of plunder, neglect and violence. As a result of those experiences, these residents are now the embodiment of reconciliation and peaceful coexistence.

The many mine dumps testify to the fact that ours is a city constituted of former mining towns. Another, related legacy of that history is the fact that 51% of the surface area under our jurisdiction is underlain by dolomite, necessitating careful management and development.

It was in our suburb of Dawn Park, twenty years ago, that former SACP General Secretary, Chris Hani, was assassinated. And, it was through the vigilant efforts of an assertive white woman of Afrikaner origin that the assassin, Janus Walusz, was apprehended with speed. To this day, blacks and whites inhabit our deracialised townships and suburbs, side by side.

We share a common abhorrence for crime and violence, regardless of the race or nationality of the perpetrators. We take pride when our children perform well in school, at the Olympic Games or on international missions to rescue victims of natural disasters in such places as Japan and Phuket.

To all of us Ekurhuleni residents, Charlize Theron and Princess Charlene of Monaco are outstanding achievers that originate from our shores. The colour of their skin is of no consequence.

After the so-called black-on-black violence of the early 1990s, hostel residents of Kwesini in Katlehong, Mshay’azafe in Thokoza and Sethokga in Tembisa, are no longer thought of as enemies by the surrounding township communities. Instead, they are embraced. The hostels in which they stay are themselves reclaiming their role in society as bastions of progressive cultural expression. Many of these hostels have been transformed, from male only dormitories, to family units.

I could go on and cite many other examples of the social maturity that defines the City of Ekurhuleni in 2013, but I do not have all day.

This social maturity that we are celebrating today is a culmination of decades of struggle. It is for that reason that we should always remind ourselves of where we came from, in order that the achievements made thus far are not taken for granted. To this end, let me take this opportunity to reflect on some of the key achievements of the ANC-led government since the dawn of democracy in 1994.

Between 1994 and June 2010, the government had built over 2.5 million homes for South Africans of all races. As a result, the dignity of over 13 million of our people has been restored because when previously they never did, they now have shelter.

Over 80% of households in the country now enjoy the benefits associated with electricity, up from 32% prior to 1994.

Nearly all households in South Africa have access to clean, drinking water, up from 60% before the dawn of democracy. When it comes to sanitation, at least 63% of South African households enjoy the dignity associated thereto, up from 43% twenty years ago.

As much as 64% of the country’s households enjoy regular refuse removal, up from 50%.

Since 1994, more than 1 600 clinics have been built or upgraded in the country, thereby making quality healthcare accessible to virtually every South African. In addition, all new-born babies and pregnant mothers can access primary healthcare free of charge.

As we turn to the City of Ekurhuleni, we find that 85% of our households enjoy the service of a flush toilet connected to sewerage, 88.4% of the households in the City have access to regular refuse removal services, 57% of Ekurhuleni households have piped water inside their dwellings and 82.2% have access to electricity for lighting.

Prior to the year 2000, 48 444 stands in Ekurhuleni were serviced. Since the formation of the Metro in 2000, an additional 70 644 stands have been serviced.

A total of 82 000 houses have been built in Ekurhuleni to date, 68 000 of which were built since the formation of the Metro.

Between 2006 and 2011, several community facilities were built, thereby broadening access for our residents.

Some of the achievements in this regard include:

• construction of 485 km of roads
• complete eradication of the bucket system;
• 368 high mast lights have been installed
• 3445 street poles have been erected
• four regional parks have been developed
• eight multipurpose parks were upgraded
• four nature reserves have been upgraded and
• a total of 60 000 trees have been planted.

A total of 19 200 of these households were electrified since the beginning of the current political term of office in 2011.

These are but some of the many tangible benefits of democracy, to which our residents can testify. It is these benefits of democracy that help us build a united South Africa, free from the racism, sexism, tribalism and religious bigotry that characterised our nation twenty years ago.

The Ekurhuleni whose virtues I am extolling today, is reflective of a South African society that the founding fathers of the ANC set out to realise 101 years ago when they formed the South African Native National Congress. So many have made the ultimate sacrifice so that we can enjoy the peace, stability and tranquillity that define South Africa today.

More work must be done in order to sustain, and improve on these achievements though. For us as the City of Ekurhuleni, it is important that we create certain conditions in order to sustain the character of our city as a socially mature one that can never be undermined.

In particular, three challenges must be confronted head-on, and be overcome:

1. We must continue negotiating the recent economic downturn, especially given the impact it has had on our city;
2. We must overcome our spatial fragmentation, because failure to do so will amount to the perpetuation of the apartheid legacy; and
3. We must halt, and ultimately reverse, the degradation of our city’s built and natural environment.

This is the essence of a future development trajectory for Ekurhuleni, which we advance in the recently adopted Growth and Development Strategy, GDS 2055.

To borrow from US President Barrack Obama:

“As our parents’ children, we have the opportunity to learn from these mistakes and disappointments. We have the opportunity to muster the courage to fulfil the promise of our forefathers and lead our great nations towards a better future.”

In the light of the above, we are today presenting twelve building blocks, which are aimed at delivering a liveable city in the short to medium term, and a productive, future city in the long term. These are the blocks that we started laying since the beginning of our term of office. Going forward, we will be picking up momentum in their implementation.

Building blocks of a liveable city

Intensifying Job Creation Activities

The official unemployment rate in Ekurhuleni is 28.8%, which is 3% higher than the national rate as per the 4th Quarterly Labour Force Survey for 2012. This constitutes a 1.1% increase in official unemployment, if compared to our medium term population figures for 2006. However, in terms of the Gauteng City Region Observatory, Ekurhuleni’ broader unemployment figures is 39.5%, thus implying that over 1,185,000 people in Ekurhuleni have no known income sources. Of these people, 61% are young people of 34 years old and below.

This is a major source of worry for us because what it implies is that nearly four out of every ten young people in our city are unemployed. It is against this knowledge that a significant portion of our future plans revolve around job creation for young people.

As worrying as the increase in unemployment is, it should be understood within the overriding context of a rapidly urbanising city. Such urbanisation is a worldwide phenomenon, where more and more people view places such as Ekurhuleni as holding the answer to their unemployment woes. Hence it is to these places that they flock in their numbers.

As we bemoan the fact that these figures for unemployment are staggeringly high, we should perhaps take comfort in the fact that, compared to 2001, the rate of employment in our city has improved by about 12%. In this regard, the Global Insight’ Economic data, the EMM economy has created at least 12000 formal jobs between 2010 and 2011.

The question you may ask is: how have we responded to the fact that in real terms, more than a million people in Ekurhuleni do not have known sources of income?

Our answer is that we have laid some foundations.

In September last year, the Municipality approved a Job Creation Strategy to enhance the number of jobs that we create in the city. Since June 2012, the City created 3 874 EPWP and 2091 non-EPWP work opportunities in Quarter 1 and 2 of the 2012/13 financial year. These figures are going to increase significantly as we approach the end of the financial year.

I am the first to acknowledge that given the magnitude of the problem confronting us, the number of jobs created seems like a drop in the ocean. But, the impact these jobs have had on the livelihoods of families cannot be undermined. I am certain that those who have been beneficiaries of these initiatives can testify to the huge difference these opportunities have made in their lives; and those of their families.

We have secured the commitment of all stakeholder departments to increase their job creation targets significantly. In our endeavour to remain true to our realities on the ground, the EMM has taken a conscious decision to invest its financial resources towards job creation as follows:

• DEMS: 200 Fire Brigade Reserve Force at a cost of R25 million per annum;
• DEMS: 219 Hydrant Maintenance, Marking & Testing Marshalls at a cost of R38 million per annum;
• EMPD: 1010 Metro Police Peace Corp Volunteers at a cost of R78 million per annum
• Economic Development: Youth Work Readiness Programme at a cost of R15 million per annum;
• Economic Development  Graduate Placement Programme at a cost of R15 million per annum;
• Economic Development: Recognition of Prior Leaning Programme at a cost of R6 million per annum;
• Economic Development  Business Mentorship Programme at a cost of R5 million per annum; and
• Customer Relations Management: Lungile Mtshali Poverty Alleviation Programme (R1 million per ward) at a cost of R101 million per annum.

It is envisaged that through this financial investment, the EMM will contribute to the creation of an additional 5500 work or income earning opportunities in the regional economy. In addition, the EMM will be hosting a Job Summit and EXPO to coordinate and bridge the gap between employers and work-seekers as well as establish a Job Creation Programme Management Unit to coordinate and programme management the job creation programme as well as leverage external funding and resources to enhance the job creation initiative.

Also, as part of our Jobs Programme, we will be setting up a job creation programme management unit. The Unit will be tasked with the coordination and leveraging of external funding from sources such as “The Jobs Fund” and other related sources.

In the final analysis, our Jobs Programme is planned in such a way that from the upcoming financial year and going forward, Ekurhuleni will create at least 15 000 work opportunities per annum. The demilitarisation project is going to be integrated into all the other job creation initiatives we will be implementing.

Before the end of the current calendar year, we shall be hosting a Jobs Summit and Career Expo. It is at this Summit that we shall seek to ensure integration of skills development to placement opportunities, especially for the youth of our city.

In all these job creation activities that we are announcing, the value of partnerships cannot be overstated. More than anything, we are calling upon commerce and industry to enter into strategic partnerships with us, to optimise opportunities that exist in this enterprising City of ours.

In terms of youth development, over R10 million has been committed by the City and various businesses in Ekurhuleni towards bursaries for post-secondary education, and on-the-job-training, in line with our “Window of Opportunity” initiative.

In order to drive the point home, it is instructive to consider what one of our residents, Mzukisi Makhetha wrote in his submission to us. He says:

“Mayor Gungubele, a lot of work needs to be done in terms of empowering the youth. Let us now talk tangible things like the number of bursaries awarded, and jobs created and occupied by young people. The city also needs a policy that will force contractors who do business with the city to employ young people and sub-contract them.”

I am certain that Mzukisi will find that our pronouncements go some way in accommodating his suggestions.

Strengthening Public Participation

In order to both create jobs and enhance public participation, we have creatively revamped the Lungile Mtshali Community Development Programme. Starting in the new financial year, we shall be allocating a million rands per ward. This increases the amount budgeted for the Programme to R101 million. More than anything, this amount to our city’s small token of appreciation in memory of our former Finance MMC, who had dedicated her entire life to making sure communities are capacitated and developed at the same time as poverty gets eradicated.

The Programme amounts to a call on communities to use these resources to engender participation in decisions that impact on their lives and those of future generations. Through the Programme, communities are expected to play a critical role in deciding a path for the betterment of their areas. As a form of participatory democracy, the Programme further promotes active, viable community-based budgeting and planning, with the ultimate aim of achieving community development and pride.

In addition to rolling out the Lungile Mtshali Community Development Programme, we are going to further intensify our various public participation activities, such as the Mayoral Imbizo programme and Service Delivery Fridays, which have thus far yielded fruit.

For instance, it has come to our attention that the way in which we are handling petitions and memoranda from communities, does not always meet the expectations of our residents. Hence, the measures we are going to implement will be aimed at improving the petitions management and information feedback process.

Also up for improvement is the IDP Public Participation process. This we are going to be inspired by the great interest that communities demonstrated during the recent consultations.

Finally, we will be supporting fully the implementation of initiatives that are aimed at improving the functioning of ward committees.

Capacitating, Stabilising and Modernising the Operational and Service Delivery Environment

Experience has shown that an operational and service delivery environment that is not stable tends to have a negative ripple effect. If there is an electricity supply outage over prolonged periods, the impact may be felt in our ICT system. If, as a result, the ICT system fails, the impact will be felt at the revenue generation level, due to the fact that walk-in customers will not be able to settle their accounts. If the city cannot generate enough revenue, its capacity to expand the scope of service delivery gets curtailed. And so on and so forth.

You will be happy to know that we have prioritised the maintenance and refurbishment of our electricity infrastructure. In 2004 we started with the standardisation and centralisation of the electricity distribution asset management. An asset care centre was subsequently established in 2006. At the time the backlog for refurbishment and maintenance stood at R1.6 billion. We then introduced a multi-year refurbishment plan based on the 3% levy on electricity to address this. For the next financial year alone, R340 million has been set aside for this purpose.

I am very excited to let you know today that since 2006 an amount of R1 billion has been utilised to address the backlog, a major indication that we are making strides to address this challenge. Among the work carried out has been the replacement of old substations and equipment.

We are also ring-fencing the energy supply programme for industrial use in order to help facilitate, retain and encourage investments.

In capacitating, stabilising and modernising the operational and service delivery environment, we shall be prioritising the stabilisation of our ICT environment, including in the area of the billing system.

With that comes the finalisation of the Business Process Mapping programmes that are still in the pipeline. By modernizing the operational and service delivery environment, we shall be able to keep the promise of a reliable, efficient and affordable service.  One example of the interventions we are making is to reengineer and automate the business processes we use to deliver services and manage our infrastructure. 

Through deployment of user-friendly technologies and hand-held devices like cell phones, we shall be speeding up our processes and improving interface with our customers even further. The driving force behind all these interventions is to make it easy for residents to do business with the Metro, whether they are paying for services or doing any other business with the city. 

Another major part of the stabilisation objective is for us to finalise our Institutional Review process. In this regard, it suffices to report that we remain on course and on schedule, to close out this project by the end of November this year. Today we are also in a position to report that we have filled most of the Heads of Departments (HODs) positions. We are now filling those of Divisional Heads. To add to this, we have prioritised all other critical positions for urgent attention.

We shall be completing all the above in the near future and this will result in a strengthened workforce which translates into improved levels of service delivery to all our stakeholders. This will further ensure that our people enjoy quality and sustainable services such as water, sewerage and electricity supply, waste management, health services, cleaning and greening, law enforcement and social housing delivery, amongst others.

Our labour relations environment continues to stabilise significantly. To prove this, there has been a drastic reduction of service delivery interruptions as a result of employee strikes. Another positive to come out of this new found relationship between labour and the employer, was the hosting of a very successful Family Fun Day at Dries Niemandt Park last year, where the political and administrative leadership, as well as all members of staff, were able to connect with one another at a personal level as residents, parents and friends.

The Local Labour Forum is meeting and processing its agenda items. Of course, discussions are not always smooth sailing. But, I am sure all stakeholders agree that Ekurhuleni has experienced unprecedented labour relations harmony for some time now.

In order to further keep up the momentum, we have since employed continuous improvement systems and backlog-eradication mechanisms to clear the backlog of unresolved and outstanding disciplinary cases. This has resulted in us engaging departments, organised labour and presiding officers, in processes aimed at unlocking backlogs to speedy resolution of cases.

As a result of these initiatives, the backlog of disciplinary cases has been reduced, from an opening balance of 258 cases at the end of the 2011/2012 financial year, to a current balance of 94 as at February 2013. The number of grievances for the current financial year has also been reduced significantly, from an opening balance of twenty-four to a current balance of seven grievances.

Honourable Councillors will surely agree that reducing the backlog of disciplinary cases will help ensure the City does not incur unnecessary costs due to wasteful suspensions.

Improving Local Public Services and Broadening Access

The programme for broadening access to local public services is going to continue in the coming financial year, and it will include implementation of projects that target informal settlements; sport, arts and culture; as well as environment and waste management.

As we roll out this programme, we do so hoping to meet the expectations of all our residents, including Ezekiel Motaung from Jerusalem informal settlement, who wrote to us to say:

“I am tired of living in an informal settlement. What is the city’s plan about the future of us living in such inhumane areas?”

Our plans for informal settlements will be of a high impact nature, notwithstanding the limited resources we may be in a position to allocate thereto. The ultimate aim in this regard will be to make informal settlements liveable by providing them with basic interim municipal services, while in the process of turning them around by either formalising or relocating them.

We will be establishing a fire-fighting reserve force in all the 119 informal settlements across the Metro. We are going this route because informal settlements are prone to fire outbreaks due to the unsafe heating methods that many residents employ during the winter period.

Let me further point out that we are not looking at informal settlements alone, we have also put in place a fully-fledged sustainable human settlements plan that will help us address issue of improving the living conditions of all our people. In this regard, the hostels of KwaThema, Thokoza, Wattville and Kwa-Mazibuko have been prioritised for redevelopment – a project undertaken by the Gauteng government and ourselves.

The redevelopment of hostels provides an opportunity to transform the spatial configuration of the former township areas and create communities that are more integrated and sustainable. Detail design work is under way for Thokoza, Wattville and  KwaMazibuko hostels to turn them into family units and integrate them with the broader community. Soon the project will be going out on tender.

Attention is also being paid to the provision of affordable rental stock in our city. In this regard we have prioritised the development of the Greenfield Community Residential Units in Esselen Park to address the high rental demand in the North. This project is also at detailed design stage, including tender documentation.

An amount of R22 million has been provided for the refurbishment of Eden Park Mews, Thokoza Mews, Reiger Park Flats, Wychwood Flats, Geldenhuise Flats, Driehoek Boarding House, Olympia Plums, Deli court, Karachi Court and Tweedy Park Flats.

Going forward, a total 15 complexes will be refurbished every year at a cost of R20 million per annum. This project starts in the next financial year and will be completed in the 2014/15 financial year.

In order to build a sense of national identity and civic responsibility, we will be introducing community-based Peace Corps in all 101 wards. The mandate of the community-based Peace Corps will be to promote community safety as the first and last line of defence.

In the last six months of the current financial year, we will be procuring one hundred Peace Corps. We will add another nine hundred to the number during the coming financial year.

In the coming financial year, we will continue our well documented efforts to extend health services throughout our communities. As we do so, it is worth noting that during the current financial year, five new clinics were built. Another five are currently under construction.

In an effort to extend Early Childhood Development services to our people, we have built a total of seven ECD centres and four day care centres during the current financial year. These ECD centres amount to our small contribution to helping ensure that South Africa brings up socially well-grounded children.

In order to improve our state of readiness to mitigate any form of disaster and/or emergencies, we have built a new Fire Station and a Disaster Management Satellite Office in the Tsakane Customer Care area, while the Duduza and Zonkizizwe Fire Stations, and the Kempton Park Disaster Management Satellite Office are nearing completion. We have also purchased an additional nine Specialized Emergency vehicles, which will make it possible for our well trained personnel to respond timeously to rescue, disaster and emergency situations.

We are aware of the shortage and ageing fleet of our ambulances, which then affects the speed and turnaround times to life threatening situations and other emergencies. In this regard, by end of June this year, we would have procured forty new ambulances and nine Paramedic Response Vehicles. To complement this, we will soon be employing an additional 170 Fire Fighter and Emergency Care Practitioners to increase capacity.

Based on our recent sad experiences where a number of children have drowned, we have introduced a swimming and water safety training programme, targeted especially at pre-primary and primary school children. Thus far, at least 4 500 children have received this training.

In the coming financial year, we will be implementing a comprehensive programme targeting children, to further complement such other initiatives as our highly successful Kiddies Olympics, which we have implemented for the second year running. It is our hope that by involving our children in all these activities, we will further improve their motor coordination and related skills, all of which will make them better equipped to cope further in life.

As we try and minimise long queues and the turnaround times to the processing of licensing transactions in our city, we recently completed the construction of three Drive-Thru service centres in Duduza, Katlehong and KwaThema.

Through our operation Fak’imali Uzobona we have constructed 47km of roads and 21km of stormwater systems. We have patched 7 666 potholes in our roads, and work continues in an effort to make our roads safer and more user-friendly.

On by-law enforcement and community safety in general, the EMPD has to date carried out almost 2 800 operations resulting in 881 arrests for drunken driving, and 375 for reckless and negligent driving. An additional 7 636 arrests were made for other crimes and 373 stolen vehicles and 26 unlicensed firearms were confiscated.

Drugs remain a major problem in our society. The most recent of these to be introduced to our streets is nyaope, which is ravaging the lives of our youth. Hence we are sparing no effort to help resolve this major problem. During the current financial year, narcotics to the value of R811 100 were confiscated between June and December last year.

Through efforts such as these heroic deeds of our EMPD officers, we are trying our best to meet the expectations of residents such as Tinyiko Nyandeni from Zonkizizwe, who says in a submission to us:

“Our townships are dying as a result of nyaope. This thing perpetuates crime because the youngsters taking it will steal, mug or even kill you just to get a cent to feed their habit. The police must put a stop to this immediately.”

It remains for me, at this point, to pause and ask Council to join me in paying tribute to the officers of our EMPD, who perished in the line of duty during the year since our last SOCA.

I now turn to our report on the electrification of homes and public facilities in the city.

In excess of 10 000 solar water heaters have been installed since 2011. 2 636 of these were installed in the first part of this financial year.

By the end of June this year, the communities of Palm Ridge Phase 5, Mayfield Extension 6, KwaThema Extension 3 and Chief Albert Luthuli Extension 5 will enjoy the benefits that accrue due to electricity for the first time.

As a result of the implementation of energy efficiency initiatives, we have saved the municipality R2.8 million to date, money which will now assist in rolling out services to those who have never had.

Soon we will be rolling out a project for the installation of solar lighting in informal settlements. The project will be launched next month. This project is intended to help minimise fire incidents at informal settlements while also making life easier for our people living there.

Our city’s water remains the best in the country, having won the Blue Drop Award four times in a row – an achievement that has earned us a Platinum Status. Our city is officially the third best drinking water provider in the world.

Looking at these achievements, clearly we have done a lot. And yet, a lot more needs to be done. Let me then reflect on our future plans for the next five years. These are some of the plans that are aimed at making Ekurhuleni a liveable city, and they are:

• We will tar 220km of new roads
• We will construct 125km of new storm water systems
• We will construct 105km of pedestrian walkways
• We will connect 44 000 households to water and sanitation
• 80 informal settlements will receive alternative sanitation facilities, and an additional nineteen informal settlements will now receive mobile health services
• We will meter 106 000 stands and replace 290 000 ageing water meters
• We will install 360 high mast lights and 2000 new streetlights
• We will build seventeen new clinics and 2000 early childhood development practitioners will be trained
• We will roll out 240 000 more 240l bins, and construct 25 public off-loading facilities
• We will purchase 400 hectares of land for the building of 71 000 housing units
• We will construct four new libraries, and develop ten facilities for arts and culture purposes
• We will upgrade five of our soccer stadiums.

Combating Fraud and Corruption

In the process of conducting routine audits as part of our assurance mandate, we have uncovered massive fraud and corruption. It is on the basis of this that we have developed a Fraud and Corruption Turnaround Plan, which we have begun implementing.

Part of our anti-fraud and corruption strategy thus far was to involve the SIU to lead the criminal aspects of the investigations, in addition to the work being done internally. Council has been kept informed on the progress of these investigations. The challenge we found was that a lot of these cases are too long for various reasons and culprits are kept in the system for longer than is healthy for the organisation. 

In order to accelerate progress towards resolution of cases, we have devised a turnaround plan. The plan has several dimensions to it, including steps to tighten the relationship we have with the SIU, as well as greater use of arbitration and mediation where necessary.  

As matters stand, there are more than two hundred cases that were previously investigated, including the ones handed over to the SIU. In order to realise the desired results of these investigations, we have decided that these cases be expedited – hence we intend to engage the SIU about existing cases and the turnaround times.

Still on fraud and corruption, during the coming financial year, we will introduce the practice of conducting lifestyle audits on employees who hold strategic positions, whose lifestyles appear to be contrary to their earnings. We anticipate that there will be resistance, but we are determined that for as long as we won’t be breaking any law, the practice should go ahead.

We have already put in place a process for the review of the performance of all our municipal entities, which should be completed in the next two months. The next step is to conclude the process, thereby ascertaining once and for all that these MOEs operate in line with the development objectives of the City.

We will present the completed report to Council by the end of June.

Through that report, we shall be seeking the approval of Council that we undertake a restructuring exercise of these MOEs in accordance with the prescripts of the law. Once that has been done, a systematic review and reorganisation of our entities will ensue. By law, the process should take up to eighteen months, though we plan to do it in half the period stipulated. The review will include improved oversight, service agreement contracting with MoEs, as well as performance management of the Boards. 

As we review the performance of the current MOEs, we will also be pursuing the idea of an all-encompassing Ekurhuleni Development Agency, as well as reconfiguring the Springs Fresh Produce Market into a fully-fledged MOE.

In three months we will be halfway through the current term of office, and it will be necessary to evaluate how well we have done in terms of implementing the Separation of Powers system. More than anything, we are determined that the system should be strengthened. To this end, we will be supporting all efforts to do exactly that.

On the part of the Executive and administration, we are overhauling our performance system. Once overhauled, it will result in improved functioning of the mayoral cluster system; especially in as far as it is necessary to align the score cards of MMCs with those of their respective HODs. Other areas that will be aligned include cross-cluster delivery, cross-cluster coordination and decision-making tree, and turnaround times; and systems for reporting, meeting and information processes.

In terms of the risk management environment, we have continued to implement our Risk Management Policy and Framework, with and through the assistance of MPAC, the Risk Committee as well as the Audit Committee. I wish to assure Council that we have a full appreciation of our risk profile, and through regular assessments, we have consistently managed to mitigate risks as and when these emerged.

Turning to financial management, especially given the recent pronouncement of the Auditor-General, I wish to assure Council and our residents that we run a financially stable municipality and the public finances are in good hands.

To demonstrate this point, we have received an unqualified audit report for the fourth year in a row. Although a “clean” audit as per the definition of the Auditor-General has eluded us thus far, during the 2011/2012 financial year we have, for the first time, received a clean opinion on the financial statements. From 109 audit findings in the previous financial year, we have brought these down to 87, which show we are making a major dent to the range of concerns that existed in the past.

We plan to build on this positive development by ensuring we address all the current audit findings on a sustainable basis.

Our rigorous OPCA processes remain in place to make sure that we achieve our target of a clean audit opinion by 2014.

Revenue management

The lifeblood of any city is its capacity to generate and sustain the revenue necessary to operate and maintain the infrastructure required for the provision of services necessary for economic and social life.

The payment of services and assessment rates is the citizen’s contribution and responsibility towards the realisation of the dynamism and viability of any city, and Ekurhuleni is no exception in this equation. In return, our responsibility as the Municipal Government is to ensure the environment in which residents live is of a high standard and quality, and the infrastructure and services meet their needs.

One of the innovations that came out of our Revenue Management and Enhancement project is the highly popular e-Siyakhokha, which allows people to pay for services online, in the convenience of their homes or offices. As a result of e-Siyakhokha, payments in excess of R127 million have been received electronically.

Our current collection rates are 92%, marginally lower than the annual target of 93%. While this is considered reasonable compared to our sister cities, we are not really satisfied with it. We have a duty collectively to lift the collection rate closer to 100%. To achieve this though, we have to overcome certain formidable obstacles.

Among these is the reality that our city does not provide electricity to all areas under its jurisdiction. Significant portions of our city receive the service directly from Eskom, and this limits our ability to effect credit control measures in such areas, through the possibility of cut-offs.

Let me demonstrate the point.

In the areas where we provide electricity, the average payment rate is 95%. However, this figure reduces significantly, to 45%, in the Eskom-serviced areas within our municipal jurisdiction. It is therefore important to emphasise to all our residents and business to pay for services in full and on time. This will allow us to extend the services to those that do not have, while maintaining and sustaining quality services in the areas that do have access.

Another critical challenge is the historical debt that has accumulated over two decades. As a metro we have accumulated a debtors’ book of more than R9 billion. It is thus incumbent upon all of us to clean the balance sheet of the metro by clearing the debtors’ book.

In the next six months, we will ultimately award the restructuring of the city’s debtors’ book to an appropriately qualified and resourced entity.

I now wish to turn to the social package that we announced during both the State of the City Address and the Budget Speech last year.

At the time, we announced a R2 billion allocation for the cushioning off of those who need additional assistance in terms of services. It is my pleasure to confirm that this promise was indeed kept, as a result of which the following categories of services were made available, for the amounts attached to them:

• Free basic water of 6kl per household per month at a total cost of R304 million;
• Free basic sewer of 6kl per household per month at a total cost of R243 million;
• Additional free basic water of 3kl per household per month to indigent households at a total cost of R8.8 million;
• Additional free basic sewer service of 3kl per household per month to indigent households at a total cost of R6.8 million;
• Provision of chemical toilets to informal settlements at a total cost of R125 million;
• Free basic electricity of 100kwh per month at a total cost of R180 million;
• Free basic electricity to Eskom supply areas at a total cost of R114.6 million;
• Once a week residential refuse round collection at no cost to indigent households, the actual cost to the city being R46.7 million;
• Provision of a refuse collection service to informal settlements (not individual round collections, service performed by contractor) at a cost of R20 milion;
• First R150 000 assessment rates exemption to residential properties, the total cost of which is R599 million;
• 100% assessment rates rebate to indigent households, estimated to cost the city R21.6 million;
• Additional assessment rates rebates to pensioners estimated to cost the city R38.5 million and
• Excessive consumption of indigents, which we write off on a monthly basis as per the indigent management policy, projected to cost R400 million.

In line with the Local Government Municipal Property Rates Act (6 of 2004), we caused valuations on approximately 614 000 properties, including sectional title units, within the areas of jurisdiction of Ekurhuleni. The Valuation Roll has since remained open for public inspection from 4 March 2013, and will close on 19 April 2013. This process is intended for owners to verify value on their properties and, if need be, submit objections as provided for in law.

Improving Effectiveness of the Metro-integrated Budget and Planning Systems

We take seriously this fact that we are entrusted with the mammoth task of turning this City into one that all will feel they belong to. Hence we have adopted a long-term Growth and Development Strategy, GDS 2055. In order to make sure funding in line with the vision contained in that GDS 2055 as well as the expressed views of our citizens and stakeholders, we are revamping the manner in which we plan and budget. 

So far, we have done sufficient preparatory work to ensure that in the coming financial year we introduce a system of planning, budgeting, performance management, and monitoring and evaluation that is integrated and operates cyclically.

In the process, our Long Term Funding Strategy will be upscaled, in order to help increase the funding options and levers available to us. The Budget Policy Instruments and Statement will be refined and refocused.

As we speak, there is a process underway, through which we are revising the City’s vision in line with the end state proposed in GDS 2055. Linked directly to this, we will also be developing a 10 to 15 year Implementation Programme, also in line with GDS 2055. This strategy implementation programme will give strategic direction, and provide a framework for making effective decisions about the focus of the IDP, the Municipal Spatial Development Framework and other planning instruments of the City.

One of these instruments is the Capital Investment Framework, the aim of which is to channel CAPEX funding to critical economic infrastructure programmes, such as the Special Economic Zones (SEZ), Industrial Development Zones (IDZ), Export Processing Zones (EPZ) and Industrial Parks and Estates. The Enterprise Project Management Office (EPMO) is going to be capacitated further to ensure alignment, value for money and improved CAPEX spending.

Transforming the Economy through Improved Efficiencies and Improved Economic Inclusion and Ownership

During the first six months of the current financial year, investments valued at R2 billion were made in Ekurhuleni, as a direct result of our timely land use planning decisions. We have approved the formation of an inter-departmental Development Facilitation Committee, which is aimed at fast-tracking the approval of development applications in line with a new and streamlined system of delegations.

The intention in this regard is to create a transparent and predictable system of decision-making on land development applications, especially in as far as those decisions involve large-scale proposals.

Even as we announce these recent system improvement plans, it is worth noting that in the six months since the start of the current financial year we have considered and approved several large-scale development applications. Today I wish to cite only five of these, by way of example.

These include the Glen Gory Development in Benoni, which is a mixed-use development compromising retail, high density residential development and an office complex.

The Alberton nodal development programme is another one. When completed, it will become a gateway to and from Ekurhuleni, on the south-western corridor. The development too is a mixed-use one comprising eco-parks, retail and residential developments, as well as corporate parks.

The Inland Port is a flagship development, comprising an industrial estate, storage, warehousing and manufacturing facilities. The Port is situated on the eastern side of the City, next to Vosloorus.

The Carnival Node development programme, the development comprises large industrial warehouses, hotel and the mixed income residential complex and retail space.

Finally, in the Kempton Park area we are considering a major development that is aimed at driving spatial restructuring consistent with the Aerotropolis philosophy and the R21 Corridor. The development comprises light industry, residential development and logistics hubs.

The overall impact is the spatially transformed city that is advancing integration of economic zones and creation of sustainable job opportunities. 

Like I said, these are just but five examples of what we mean in practical terms when we say we want Ekurhuleni to become a preferred destination for growth, in line with the manifesto of the ruling party – to build local economies, create jobs, decent work and employment.

When it comes to our attitude towards the fast-tracking of decision-making, we have witnessed an increased interest from developers and investors to have their developments located in Ekurhuleni. We welcome these developments wholeheartedly, and will do everything within the law to make sure they remain within our jurisdiction for years to come.

At the same rate as we were approving major development, we have received investment commitments totalling not less than R9 billion. Going forward, we are aiming to double, even triple, this figure. 

To achieve this, we will be effecting improvements to our CAPEX spending so that we increase steadily the Rand value of inward investments in industrial and tourism infrastructure. This will build on major investments that have occurred in the past six months of the current financial year, some of which I have already cited.

Another such development is the new Lord’s View Industrial Estate, which was launched in October 2012. Already, Unilever has confirmed that it will operate a new ice-cream factory on these premises. Also confirmed to use the facility is a R9 billion investment by a pharmaceutical & human sciences multinational corporation. Furthermore, the R1,7 billion inward expansion investment by Unilever SA in Boksburg and the presence of Transnet’ Engineering operations in Ekurhuleni have also reinforced and bolstered the manufacturing sector in the national economy.

We expect that more commerce and industry major players will come on board, if not before the end of the current financial year, then certainly in the new one.

In order to enable even more initiatives of this type and magnitude, we will soon be approving an Investment and Development Facilitation Strategic Policy Framework for the city. Through the Framework, we are effectively issuing an invitation to business, to help turn Ekurhuleni into the best city in which to invest and do business.

Revival of the Manufacturing Sector

We have been known as the workshop of Africa due to enormous inherent capacities in the areas of heavy duty manufacturing, as demonstrated by the presence of companies such as Scaw Metals and Transnet Engineering in our shores. In this regard, I would like to single out the Transnet Group for demonstrating their unquestionable corporate citizenry and commitment to Ekurhuleni by running the School of Engineering here. This has helped expose over 290 young people to various engineering trades.

I had the pleasure to visit Transnet’s Germiston plant last week, to witness this intervention first-hand. As a result, we have made a commitment to work with Transnet by co-funding the placement of at least 100 young people at their School of Engineering over and above other areas of synergies. Furthermore, I am informed of a possible investment by a European Automotive Assembly Company to establish a plant in Springs in partnership with Vivian Regina Marketing (Pty) Limited.

In order to augment these successes, a process is underway to formalize strategic partnerships with the organised business, Productivity SA, National Cleaner Production Centre and Proudly SA to implement a 12 Pillar Programme towards the revitalisation of the manufacturing sector, as follows:

• Pillar 1: Industrial Situational Analysis and Competitiveness Index;
• Pillar 2: Industrial Planning and Strategy;
• Pillar 3: Industrial Sector Clustering and Development;
• Pillar 4: Investment and Development Facilitation;
• Pillar 5: Productivity Improvements and Industrial Upgrade;
• Pillar 6: Green Economy Development through Cleaner

Production & Resource Efficiency & Waste Beneficiation;

• Pillar 7: Technical Skills Development and Industrial Incubation;
• Pillar 8: Economic Infrastructure Development & Logistics Networks;
• Pillar 9: Leverage Strategic Procurement for Industrial Development and Inward Investment;
• Pillar 10: Research and Development to encourage Innovation;
• Pillar 11: Database Development and Stakeholder Mobilization; and
• Pillar 12: Strategic Industrial Financing

It is worth noting that through the National Cleaner Production Centre, EMM has been allocated a budget of R7 million to implement the resource efficiency and cleaner production programme wherein 20 companies are targeted per annum.

Our efforts at revitalising the manufacturing sector is gaining momentum and has since yielded positive results.

Our Work and Partnership with Business

Through engagement with Organised Business and Captains of Industry, we have proposed a framework for establishing the Ekurhuleni Organised Business Engagement Platform. The main aim of the intervention is for us to foster relations between big, established business and emerging business. In that way, emerging business will be assisted to participate effectively in the mainstream value chains. 

We know that big business shares our view in this regard, given its patriotic character. Given that nature, there is no way it can only be profitable without helping government create a conducive environment necessary for sustaining and enhancing our nation-building efforts.  It is therefore imperative to approach this collaboration in an open minded, productive and developmental manner.

We have long maintained the view that ours is a developmental and enabling role, which role we must play to support private business to invest and thrive in our space.

I must thank most sincerely the various business leaders that have made our continuous engagements and initiatives possible.

I would also like to thank the Ekurhuleni East and West Colleges, for partnering with us to ensure that a skills revolution happens in this city. At the moment, we are in the process of aligning our draft Regional Skills Development Strategy to the partnership agreement that we signed with the two Further Education and Training (FET) colleges last year.

The partnership seeks to activate the following interventions: technical skills development, Recognition of Prior Learning, Research Development and Commercialisation of Innovation, Development of an Industry-oriented Syllabus, as well as leveraging Funding from SETAs. The purpose of these focus areas is to consolidate existing partnerships with both FET Colleges, Transnet, EMM Energy & Economic Development Departments to enhance and reinforce “Centres of Excellence” in (i) light & heavy duty manufacturing, (ii) light & high voltage electrical training and (iii) entrepreneurship.

In this regard, work is underway to develop an Ekurhuleni Scarce Skills Audit, a Database of Unemployed Graduates and Youth, an Ekurhuleni Human Development Council, as well as a Feasibility Study for the Establishment of suitable institutions of higher learning in the city. In our determination to ensure that these initiatives succeed that we will be investing an amount of R10 million to activate the partnership.

The details of this investment and any other financial investment mentioned herein shall be expanded upon in the forthcoming Budget speech which will be tabled in this house.

As you can tell, we share the view of Honourable Minister Nzimande, that FET colleges hold a huge potential for the rapid development, industrialisation and urbanisation of South Africa.

Even though in his submission, Peter Berhmann from Nigel advocates for universities in our city, I am sure he agrees with us on the view that FET colleges are the way to go while we engage with Government on opportunities for the diversification of the higher education sector here.

In this regard, I am pleased to announce that Ekurhuleni West FET College has demonstrated its corporate citizenry by deciding to build its new R43 million Head Office in Germiston. This tangible demonstration of confidence in our City will go a long way to augment and reinforce our Urban Regeneration Plan for Germiston as the political and economic centre of Ekurhuleni.

I am now turning to our initiatives in as far as sport, recreation, arts and culture initiatives are concerned.

In this regard, our focus will include rehabilitation of facilities, which we are going to couple with systematic development and implementation of focused sports, recreation, arts and culture and legacy projects.

Our plans will focus on all aspects of our work, including performing and visual arts, craft, heritage, sport and recreation mass participation, capacity building, and talent identification programmes.

In addition, we will be prioritising development of key capital projects, which are intended to further meet challenges posed by a lack of access to facilities. Some of these key projects that we have planned for the coming financial year include completion of the O R Tambo Cultural Precinct, Winnie Mandela and Langaville Libraries, Tsakane Stadium, as well as the upgrading of a host of swimming pools in our area – with the aim at ensuring that most of them are operational by this summer.

We are also in the process of constructing the Germiston Theatre, the Chris Hani Monument, Tsakane and Brakpan Libraries, as well as a Reconciliation Monument in Duduza. We will further be upgrading the KwaThema, Duduza and Wattville Stadiums.  

I am confident that these pronouncements will go some way in address the concerns of one of our residents, Oupa Mthethwa of Daveyton, who wrote to us to say:

“Very little is being done to improve township sport, theatre and recreation. Can you, Mr Mayor, please make sure that more sporting facilities are made available in the townships and not only that, they must be maintained and the city must promote competitions so that as young people we are kept physically fit and healthy.”

On the environment and waste management front, we will upscale measures and initiatives to reduce illegal dumping; finalise the development and implementation of the environmental grand plan; finalise publication and rapid implementation of the norms and standards for sustainable grass cutting and refuse collection.

One of our residents, Sinako Shoba from Wattville, wrote to us to say:

“Mr Mayor, we are sick and tired of living like pigs. The illegal dumping is now a health hazard especially with the rats. Urgent intervention is needed.”

Our answer to this impassioned plea lies in the norms and standards for refuse removal. It also lies in our appeal to communities to help us combat illegal dumping in all its forms. On our part, as I have already announced, we are going to implement a massive rollout of dustbins to ensure no excuses are left for dumping in public spaces.

Building blocks of a productive, future City

Madame Speaker, in introducing this section, I wish to quote President Obama again:

“As our parents’ children, we have the opportunity to learn from these mistakes and disappointments. We have the opportunity to muster the courage to fulfil the promise of our forefathers and lead our great nations toward a better future.”

In our long-term plan, GDS 2055, we have captured the story of a better future for our City in the next 40 years under three transitions: that of turning Ekurhuleni into a Delivering City by 2020 given our current socio-economic challenges; that of turning Ekurhuleni into a Capable City by 2030 in anticipation of the potential challenges posed by population growth and high levels of urbanisation, amongst others; and that of becoming a Sustainable City by 2055, in anticipation of such natural phenomena as global warming and climate change pressures.

Metropolitan municipalities and large cities such as ourselves were identified as strategic partners for the success of the country’s massive infrastructure rollout, which was announced by President Zuma last year. That is why as the City of Ekurhuleni, we have been an integral part of the Presidential Infrastructure Coordinating Commission from the point of its inception.

Our character as a ‘corridor city’ means that development of the Gauteng-Free State-KwaZulu-Natal Corridor would be incomplete if it did not translate into massive improvement of the infrastructure of the City of Ekurhuleni. Hence we have entered into a partnership with PRASA to develop the Germiston Station. This project is currently at a design stage.

In pursuit of this great future, I now turn to the key strategic actions that we will be implementing.

Fast-tracking Flagship Projects Implementation

We are going to expedite integrated planning and implementation of flagship projects where significant work has already commenced. This will be coupled with us taking the remainder of the flagship projects to a level beyond the conceptual stage.

Ekurhuleni Aerotropolis

This flagship project has been in the pipeline for some time, and I am aware that there continues to be sceptics in our ranks as to whether it will see the light of day. To them I wish to confirm that we have no intention to go back on pronouncements made previously.

Following the development of our Strategic Roadmap, we have now set out to develop the Aerotropolis masterplan. In this regard, a tender has been issued, to invite appropriately qualified service providers to step forward and help us develop this masterplan. We anticipate that process will take up to eighteen months to conclude.

Our plans enjoy the support of Provincial and National Government. Hence we are in continuous engagement with them. We have also established a joint planning forum between ourselves, Province and the Airports Company of South Africa (ACSA) – and we will be drawing from the experience of rolling out successfully the Gautrain project to make sure that the Ekurhuleni Aerotropolis is an overwhelming success.

We have also adopted the Spatial Development Framework for Region A, which is essentially a key enabler of our Aerotropolis plans. We are now busy developing Planning and Land Use Guidelines. The aim is to create a sense of spatial certainty, and confirm the end state of our urban form.

Perhaps most importantly, this year we will be hosting the Airport Cities Conferences and Exhibitions, ACE 2013 from 24 to 26 April. The Conference is an annual event of all Major Airport Cities in the world. This will be the first time that the event takes place on the African continent and it will give the city great exposure to the international investment community. We are, therefore, conscious of the huge expectations on our city because, through the Conference, we shall be flying the flag on behalf of the country, province and continent. We dare not fail.

Digital City

Following recent challenges, we are now in the process of replacing the Uninterrupted Power Supply (UPS) units, installing back-up generators and improving the air-conditioning of the main data centres in Germiston and Boksburg. This will help minimize the risks of downtime during power outages and ensure ICT continuous operations.

We have also appointed a service provider to assist with the stabilization of the ICT system. The service provider will, as part of their scope of work, ensure the functioning of Boksburg as a Disaster Recovery site. We will soon also be going out on tender to appoint a service provider for maintenance of data centres, as the current contract is coming to an end in June 2013.

We have also appointed an ICT Specialist to conduct a skills assessment exercise across the ICT department. This is aimed at determining the gaps and challenges in the ICT department, so that we can put an improvement plan to capacitate it.

In our drive to turn Ekurhuleni into a Digital City, we are continuing to invest in the fibre network. Our efforts in this regard will be guided by, among others, the fibre optic audit we undertook. The key beneficiary of this investment is an improved billing system and the planned Unified Command Centre.

We are working on the development of a Broadband Strategy for Ekurhuleni. The Strategy is aimed at guiding our overall approach to broadband infrastructure and E-Government Services that we intend to deliver to citizens.

Soon we will be appointing a transaction advisor to assist in the development of a viable economic model for, amongst others, the financing of this ambitious initiative. The transaction advisor will also look into how we can commercialise some of the investments made on our broadband infrastructure, as well as key prioritised E-government Services to be rolled out. We envisage that the entire transaction advisory process will be completed in the next 18 months.

Another key aspect of the digital city project is the business process automation. In this regard, I am pleased to report that seven customer-facing processes have been automated, and more are to follow. One example of this is the online registration for Indigent Households which is currently being tested, and will soon be deployed onto the internet.

We have also made a significant impact with respect to the customer notification through SMS functionality for approved indigents. The Indigent Registration process has been rolled out in three CCC’s, and soon it will be rolled out to all other CCC’s.

I am certain that this initiative will meet with the approval of Khabo Nxumalo from KwaThema, who wrote to us to say:

“I am an unemployed pensioner who has for several years tried to apply for the indigent policy without any success. Can the municipality make sure that it is easy to apply for this scheme because I can’t really afford to pay for services anymore?”

The Call Centre remains one of the most critical and priority areas for the municipality to capacitate and overhaul. It is, after all, a major part of the City’s medium to long term plans to upgrade the current Call Centre, based in Bedfordview. By revamping it, we aim to ensure that services to the communities are improved in the short term. The process to increase the capacity of the current Call Centre, in such a way that it is able to accommodate 50 additional Call Centre Agents per shift, with a total of 200 additional Agents on a 4 shift system, is underway.

Once the above has been concluded, the lives of our people will be made much easier, as it will result in the reduction of communication costs, easy payment of services, easy online access to information about the services of the metro, eradication of mistakes in the billing system, as well as prompt responses to customer complaints and other urban management issues.

Madame Speaker, Residents of Ekurhuleni;

Transport and IRPTN

I wish now to turn to our pronouncements on transport.

For a considerable amount of time, the people of Ekurhuleni did not have the kind of transport that enables them to reduce traveling times and get to and from their destinations in a time-efficient manner. The provision of an integrated transport system will ensure a high quality integrated and well maintained transportation infrastructure, integrated public transport system as well as a high degree of mobility and choices to commuters.

To address these shortcomings, the Operational Plan for Phase 1 of the Integrated Rapid Public Transport Plan (IRPTN) has been completed. As a result, we have since signed a Memorandum of Understanding (MOU) with the main Public Transport Operators in Ekurhuleni. The MOU defines the rules of engagement during negotiations pertaining to the IRPTN or BRT implementation in Ekurhuleni, which will get underway anytime from now.

The City has also formed a project team to help us plan and implement the IRPTN system. It gives me pleasure today to announce that we envisage that construction of the bus routes will commence from mid-2014, and the first bus will start operating by early 2016.

The benefits of the IRPTN system are many, but today I wish to point out a few obvious ones. There will be job opportunities during construction, and such professionals as engineers, artisans, bus drivers, station ambassadors, and call centre agents will benefit greatly.

The IRPTN also guarantees easy movement of goods and people throughout the city. All buses will have an 80% local content, and will not be imported. Traveling times between destinations will be reduced. Finally, the road passenger transport industry will be formalised.

Urban regeneration

In her submission to us, Ms Marie Grobbelaar asks:

“Could our town of Springs be restored to its old glory? The outside of our library is in a sorry state. Can you not clean it up and remove the alien shrubs and rubbish and thus set an example?”

What Ms Grobbelaar is pleading for is a process for the regeneration of our urban spaces. This is important because the majority of our constituent towns are 100 years old. This has necessitated a focused attention to revitalise and regenerate them. Hence, the ultimate goal of our Urban Regeneration project is to develop and implement long-term strategies that will guide growth and development.

The purpose of the project is to eliminate the very decay and deterioration of the built and natural environments, which Ms Grobbelaar is complaining about.

As a start, the project is focusing on Kempton Park and Germiston. In the medium to long term, the project will move onto other parts of the city, including Springs.

The project planning exercise for Germiston is at an advanced stage. The planning process for Kempton Park is underway.

In Germiston, we have completed the plan and detailed designs for +/-350 social housing units at the Fire Station Precinct.

As already mentioned earlier, construction of the Germiston Theatre, which is part and parcel of this project, should commence as soon as detailed designs and plans are completed and approved.

I am also pleased to announce that the Township Regeneration programme focuses on all 5 township complexes of EMM, that is:
1. Tembisa
2. Kathorus
3. Kwatsaduza
4. Wattville/Actonville and
5. Daveyton/Etwatwa

National Treasury has invested R6million to develop integrated plans and strategies so that the development is done in a coordinated way. The Plans include detailed business plans with short, medium and long term plans.  The projects are implementable by various spheres of government and government entities and they cut across all sectors including economic, spatial, engineering, transport, housing, sports and recreation.

In the current financial year two quick win projects are being implemented in Tembisa namely:

• R20 million invested by the Municipality for the development of Winnie Mandela Square and the roads linking the Civic Square and Swazi Inn
• The Provincial PTP Unit (Priority Township Programme) is investing R23 to develop the George Nyanga square at the entrance of Swazi Inn and the Civic Square.

Other commitments and achievements include;

• Commitment by PRASA  to upgrade the Leralla station in Tembisa and the Municipality has contributed R12 million for a pedestrian bridge connecting the north and the southern part of the station
• Commitment by Provincial Economic Development Departments to develop the Tembisa Enterprise Hub.

For the other 4 township complexes, the urban development framework and Draft Business plans for the Kwatsaduza, Daveyton/Etwatwa and Wattville/Actonville are complete.

Now I turn to our pronouncements on township economies.

Our Township Economies programme is also gradually gaining momentum and has realised several successes. The Spaarwater Farm opposite Duduza on Nigel road, Tambokiesfontein Farm in Magagula Heights and the Essellen Park in Tembisa are being utilised as incubators for agricultural cooperatives.

In this regard, six broiler houses were constructed, and another one is under construction and will be finished by the end of this financial year. All structures that we have constructed have a broiler capacity to breed 23000 chicks per annum. In order to ensure that these initiatives are sustainable, some of the cooperatives have be linked with major value chains, and they are now selling their produce to Spar and Pick n Pay retail stores. Discussions are also underway to secure supply contracts from Massmart stores. 

We acknowledge that these interventions need consolidation, a process we are undertaking. We have also developed a strategic framework and channelled R133 million for this purpose. The action plan in this regard  includes the development of township business hubs, computer centres, agricultural projects, informal economy infrastructure, as well as SMME development and support centres.

By doing so, we are reaffirming the internationally held view that SMMEs constitute a new and major frontier for job creation. As a result of our township economies initiatives, with effect from January 2013, 20 Vuk’uphile Contractor learners have been contracted to implement infrastructure projects, which include Phase 2 of the Business Facilities Centre in Kempton Park as well as agriculture production facilities in Essellen Park, Vlakfontein and Spaarwater Farms. Also, the learners have been engaged in the upgrading of two computer centres.

In order to demonstrate that the Vuk’uphile Project is not merely theoretical, we have today in the audience beneficiaries programme who have since progressed to being reputable business people. These entrepreneurs developed progressively through legal and transparent processes:

1.  Mr Modise Motsoane - Puledi Engineering and Construction Modise joined the Ekurhuleni EPWP Vukuphile Learnership programme in 2005. He had no construction experience, and we had registered him on an entry level of CIDB grade 1. Today Puledi Engineering and Construction cc is on a CIDB, 6CE 5SH 5 GB and can tender for work even on a grade 7.

2. Mr Teboho Mofadi - Teboho Mofadi Trading and Construction CC: In 2011, Tebogo joined the Vukuphile 2 learnership programme at CIDB level 1. Currently, he is on CIDB 3 CE and upon his exit it is envisaged that he will be on CIDB Grade 5 CE. Furthermore, Tebogo has been selected as one of the participants of the SABC 2 BIG Break Legacy Programme wherein the winning entrepreneur will win R5 million to be injected into their Businesses.

3. Ms Kola Kgadima - Opal projects and Management cc: Ms Kgadima also joined the Vukuphile learnership programme in 2011 with limited construction experience at entry level CIDB 1 grading. Currently, Kola is at CIDB grade 3 CE and we envisage that upon her exit she will also be on CIDB Grade 5 CE.

4. Mr Edwin van der Bijl - Reaikaga Construction: Edwin also joined the Vukhupile Learnership programme in 2005, and like Modise he was registered as an entry level of CIDB grade 1. Edwin is currently on a CIDB grade 5CE and has applied and he is awaiting approval for a 7CE.

This is clear proof of our commitment to the economic development of our citizens irrespective of race, gender, religion and creed.

All four entrepreneurship are graduates and beneficiaries of the Ekurhuleni EPWP Vuk’phile programme. I would like to invite all four entrepreneurs and their partners to stand up so that the Council can see them.

At a strategic partnership level, we have established solid working arrangements with SEDA, Institute of Business Advisors and Productivity SA, amongst others, to support our many township economies development initiatives, which will result in business and job opportunities for the youth, women and the unemployed, economic transformation of our townships, development of the farming sector and skills development all round.

Beautification of Lakes, Dams and Pans

A broad framework for implementation of our project for the Beautification of Lakes, Dams and Pans has been approved. It deals with the rehabilitation and maintenance of these natural resources; their conservation and beautification; linkages to sport, recreation and leisure; opportunities for economic development and food security; as well as tourism and leisure opportunities.

To maximise the opportunities inherent in these natural resources, we will soon be inviting key investors to partner with us.

As we speak, we are engaged in a massive beautification exercise of the Germiston Lake. This project will be completed by the time we host ACE 2013.

Implementing Spatially Aligned Infrastructure Investment Programmes

In order to achieve this, we are going to finalise the review and development of the Municipal Spatial Development Framework, the six Regional Spatial Development Frameworks (RSDFs), as well as the Investment and Development Facilitation Framework. This is bound to result in the activation of financial and non-financial incentives for developers. We are also going to be releasing several strategic land parcels for joint development with the private sector.

The Urban Development and Renewal Plan, which we are compiling, is going to ensure that goals entailed in the project are enabled. The Plan will further help with the monitoring of compliance with respect to the built environment regulations, as well as ensure regular reporting.

Last year we announced an intention to profile our development potential by maximising on the development of key strategic land parcels within the jurisdiction of the municipality. That process has gone smoothly in respect of municipal-owned vacant land, and it resulted in the identification of certain key and strategic land parcels.

The land parcels in question meet the following criteria:

• They are located on major economic nodes;
• They are located on major corridors, such as on BRT routes;
• They are located for the advancement of urban regeneration and urban renewal programmes;
• They are located within the Aerotropolis catchment zones; and
• They are located where there is potential for densification.

We have since identified more than 140 key land parcels, which are consistent with the criteria above. The next step is to solicit, on a competitive basis, proposals from potential partners capable of helping us to drive major developments.

The intention is to maximise the following types of developments:

• Industrial Projects
• Commercial Property
• Mixed Use Development
• Retail Development
• Research and Development
• Flagship Projects
• Green Economy Projects
• Township and Small Nodal Development Projects

Improving the Performance of the City’s Infrastructure Networks

In order to reposition the city for more accelerated growth and development we are investing, in a phased manner, in the refurbishment of the city’s electricity networks. This will be done in order to create dependability and stability. This is critical if we are to continue to attract and retain significant investment.

In conclusion

I wish to reiterate heartfelt gratitude to all residents that took the trouble to interact with us as we were preparing this State of the City Address. These include those that wrote to us, as well as those that simply walked into our various offices and service points throughout the City, to indicate what it is they approved of, and what they wanted to see addressed.

Thanks are also due to the Members of this Chambers, the Councillors whose voice is that of the voiceless. If you, Honorable Fellow Councillors, fail to convey the views and feelings of your constituencies, there is a very real chance that those voices will be muted. Keep it up.

To the City Manager, the Management and staff of our City, my message is simple: inde lendlela – we have some way to go. Your efforts thus far have ensured that we are counted amongst the best cities in the country and the world. We will be hosting ACE 2013 because the community of airport cities has decided that we are worthy of that honour. And, such an honour is no mean feat. It is an honour that was earned in action.

Through this SOCA 2013, I hope I have managed to take you into our confidence with regard to the plans we have for the Metro going forward. I have further given you a snippet of some of the achievements of our city, province and country in the period that Africa’s oldest liberation movement, the ANC, has been in government. The challenge was to reverse the legacy of more than three hundred years of institutionalised racism, racial discrimination and apartheid rule.

It was not an easy battle to wage, but as the summary has shown, I am sure you agree that we are on course. The party that has helped liberate South Africa has proven itself capable of maintaining democracy through the provision of services to all its citizens. This is the reason why when the time comes, the same party should be given the opportunity to continue with that task.

I wish to conclude by borrowing one last time from President Obama, because his words have an important meaning for us to process. He says:

“As our parents’ children, we have the opportunity to learn from these mistakes and disappointments. We have the opportunity to muster the courage to fulfil the promise of our forefathers and lead our great nations toward a better future”.

The challenge, in the light of this statement, is for us to ponder what it is we are going to do to make Ekurhuleni a better place – a place in which black and white, old and young, religious and atheist, live side by side for centuries to come.

For me and the leadership of the City, we have come up with a number of ideas. It is up to you to join in and complement our efforts.

That, colleagues, comrades and friends, is the state of our city.