MEC Nono Maloyi: North West Cooperative Governance, Human Settlements and Traditional Affairs Prov Budget Vote 2023/24

Speaker of the Provincial Legislature, Hon Basetsana Dantjie Deputy Speaker, Hon. Lenah Miga
Chairperson of Chairpersons, Hon. Kabelo Mataboge Chief Whip, Hon. Lazarus Mokgosi
Honourable Members of the Provincial Legislature
Premier, Kaobitsa Bushy Maape
Members of the Executive Council, Executive Mayors and Mayors Chairperson of SALGA-NW, Cllr Khumalo Molefe
Chairperson of the NW House of Traditional Leaders and Khoi-San Leaders, Kgosi Thari Maotwe Dikgosi tsa rona
Head of Departments of CoGTA and Human Settlements
Chairperson, Deputy Chairperson and Members of the Rental Housing Tribunal CEO and Staff Members of the North West Housing Corporation
SAWIC and the Built Environment Industry All Sector Stakeholders
Distinguished guests Members of the Press
Baagi ba North West Province

Honourable Speaker, borrowing from the development theory of ekistics, we are adamant that the physical, social, and economic aspects of human settlements are interconnected and must be considered as a whole in order to create sustainable and liveable communities. The attainment of liveability and sustainability, within these communities, can only occur within the realm of governance and development, as enshrined within our local government and traditional affairs structures.

It is thus by no faulty design, that we present 2023/24 Budget Vote 09 and Budget Vote 14 for the Department of Cooperative Governance and Traditional Affairs and the Department of Human Settlements.

The need for urgency in the delivery of responsive services, cannot begin to be overemphasised. Development must be fast-tracked and we will not allow the culture of incompetence in the local government space to be a barrier against the development of our people. In 2023/24, we will have to be radically decisive in dealing with this culture if we are to bring about change and inspire hope amongst our people.

Honourable Speaker, we draw courage from the words of President Cyril Ramaphosa, when inhis State of the Nation address, he proclaimed that, 'We are at our most essential, a nation defined by hope and resilience".

Motlotlegi Mmusa-kgotla, this statement inspires us to do all in our power to inspire change and restore hope amongst our people in the year of decisive action, to advance the people's interest. The change we seek will be realised through several strategic fronts we have adopted, guided by SMART PRINCIPLE which demands us to be Specific, Measure what we do, achieve our Targets, be Realistic in setting our targets and our activities be time bound.

This radical approach is the catalyst we need to successfully implement our twin mandates of: (1) Providing adequate and sustainable integrated human settlements that improves the quality of lives, (2) Providing democratic and accountable government for local communities, ensuring the provision of services to communities in a sustainable manner,whilst promoting social and economic development, central to which is our traditional authority.

Madam Speaker, the past four years have presented the nation and the people of our province with enormous challenges, emanating from effects of climate change such as severe floods and nature's wrath which unleashed the COVID-19 pandemic. This occurred inthe midst of the triple challenges of poverty, unemployment and inequality, setting our economy several steps backwards.

I present herein our vision for the fulfilment of these mandates for the 2023/24 financial year, as I begin with the presentation of Budget Vote 9, which deals with Cooperative Governance and Traditional Affairs.

The impact of load shedding on provision of services

Madam Speaker, load shedding is a reality we are all faced with and has affected the operations of waste water and water treatment plants. The adversity of load shedding on the efficiency and reliability of waste water and water treatment plants networks cannot be overemphasized.

As part of our intervention, we are in discussions with the Chinese company that specializes in funding, construction, and operation of small to medium size electrical plants. It is envisaged if successful, the plants would be implemented in municipalities that would be identified by the department.

Furthermore, the department has received a proposal from the Military Veterans and Hitachi company (Swiss) that specializes in developing and funding electrical plants using waste material; to this effect the department has identified Madibeng, JB Marks and Moses Kotane local municipalities where this project would be piloted.

Addressing dysfunctional municipalities and building a brighter future: Collaborative efforts for municipal reform

The state of local government in our province calls for our urgent intervention.The general performance of municipalities in the province has over years been on a downward slope. One of the key enablers of this unpalatable state of affairs, is the high vacancy rate in senior management positions which undermines the effective and efficient execution of the local government mandate. On the 1st of March this year, we issued out a directive that all vacant senior management positions in municipalities must be filled before the end of April 2023. Currently, only fifty (50) % of the positions of Municipal Managers and forty-five 45% of senior managers have been filled.

During the 2022/23 financial year, we conducted empowerment workshops to strengthen municipalities to comply with the anti-corruption measures; unfortunately, the compliance continues to be unsatisfactory. In collaboration with key stakeholders, we will continue to strengthen the capacity of municipalities to fully comply with the anti-corruption policy scheme.

The department will further strengthen a targeted training support to councillors to enable them to meaningfully execute their political oversight role; and we will also ensure that ward committees are capacitated for them to be fully functional and effective. In our radar for the current financial year, we have set 15 training projects which are meant to benefit 740 councillors, municipal officials, and ward committee members. The projected budget for this intervention is set at R6 million.

Constitutional Section 139 interventions

Madam Speaker, section 139 interventions in local government in our province has been an order of the day. By all accounts, such interventions have been merited by the troubled state of governance in these municipalities. The systemic pattern of weak institutional capacity, inadequate financial management, rampant corruption, are but some of the demons that warrant the invocation of section 139 processes in local government.

The department is at pains of seeking to facilitate stability and proper governance in municipalities to obviate the continued reliance on section 139 interventions, which often has brought about unintended consequences. The department has in this regard, pledged collaboration with stakeholders such as South African Local Government Association (SALGA), Provincial Treasury and the Office of the Premier to mutually chart and agree on a dispensation to streamline their support functions to municipalities. We shall get to the promised land!!

Municipal skills audit

Honourable Speaker, as part of our decisive interventions in municipalities, the Department has resolved and undertaken to conduct SKILLS AUDIT in local government for a period of twelve months, effective from the 1st of July 2023 and set to end on the 1st of July 2024. The strategic thrust of this intervention is to identify the skills capacity in municipalities; aligned the existing skills properly to the business operations of the municipalities; identify skills deficiencies and devise requisite training interventions.

Local government turn-around strategy

In tandem with the SKILLS AUDIT intervention, we are at the advanced stage to finalize the implementation of LOCAL GOVERNMENT TURN-AROUND STRATEGY, which seeks to create and strengthen real time, early warning-oriented system, rapid response interventions in municipalities.To this end, we will source a software system which will have access to governance systems of municipalities in real time, thus ensuring that our interventions are not after the fact but happen before things fall apart. This strategy will become effective from the 1st of July 2023 and run for a period of three years.

Honourable Speaker, another leg of the Strategy, is through the partnership we have with the North West University, wherein the university has availed the services of more than seven hundred post graduates students to the support programmes of the Department tomunicipalities. We have taken hundred (100) of them based onour limited resources.These students are drawn from the disciplines of engineering, town planning, public administration, environmental management, and information technology. They will be deployed in municipalities in the province to assist in strengthening the operations in line with their academic disciplines. We will be launching this programme during the month of June 2023.

Eskom debt relief

Honourable Speaker, in the North West alone, the arrear of bulk purchases debt owed to Eskom by municipalities stands at R5.390 billion. The municipalities responsible for this debt are Matlosana, Rustenburg, Madibeng, Kgetlengrivier, Naledi, Ramotshere Moiloa, Tswaing, Mamusa, Lekwa Teemane, Ditsobotla and Maquassi Hills.

In a pursuit to alleviate this burden on the part of municipalities and to address Eskom's financial and operational challenges, National Treasury has introduced the Municipal Debt Relief Programme. Municipalities were duly briefed between April and May 2023 of the existence of this programme and what it is requires of them in order to be eligible for the dispensation. Against the backdrop of this programme, the Department has equally sensitized municipalities to do the following to avoid ineligibility:
(1) adopt a payment schedule to Eskom by no later than the 31st May 2023; (2) Manage the municipal budget and financial ring-fencing procedure within the 2023/24 MTEF budget; and (3) Initiate their payment of monthly bulk purchases account in full settlement to prevent accrual of arrears.

Municipal audit outcomes

Honourable Speaker, employment of consultants in municipalities has become a rule rather than an exception to the rule. The Auditor-General's audit report for 2020/21 financial year has forthrightly highlighted this concern. Their value in the municipal business processes does not worth the resources spend on them. The financial statements they produce are by far shoddy and not worth the paper they appear on.

As an illustration of the gloomy picture of audit outcomes in municipalities for 2021/22 financial year, the following is worth noting: Ramotshere and Greater Taung local municipalities have moved from disclaimer to qualified status; Moses Kotane Local Municipality improved from qualified to unqualified; Moretele Local Municipality has regressed from unqualified to qualified; Ngaka Modiri Molema District Municipality maintained an adverse status for four (4) consecutive years; whilst Kgetlengrivier, Naledi, Maquassi Hills, Madibeng and Ratlou local municipalities also maintained disclaimer status for four (4) consecutive years. The audit outcomes for Mamusa and Ditsobotla local municipalities are still outstanding.

Honourable Members, in our undeterred pursuit to tum these negative audit outcomes into favourable audit outcomes, we have established a team in the department whose mandate is to comprehensively work on the stubborn performance red spots in municipalities jointly with municipal officials. We are confident that gradually we will realize improvements in the system.

The District Development Model (DDM)

Honourable Speaker, all four districts submitted their One-District Plans to the department for re-assessment by 31st March 2023. The participation of sector departments in the District Technical Committees is still a challenge and their participation is key in ensuring that the projects identified in the DOM translate into long-term strategic interventions in this space. We further call for the strengthening of DOM model by full commitment of sector departments.

Efficient use of conditional grants for service delivery

Honourable Members, our municipalities have maintained a shoddy track record on the expenditure of Municipal Infrastructure Grants. The general institutional control deficiencies in municipalities and lack of appreciation of the intended impact of these grants in aiding sustainable service delivery in local government, have fertilized non-compliance environment in municipalities.

Honourable Speaker, the Province has lost R 448.305 million through stoppage process by National Treasury, which was part of the current grant allocations to municipalities in the 2022/23 financial year. Affected grants comprised of: Municipal Infrastructure Grant (MIG) R238.026 million, Regional Bulk Infrastructure (RBIG) R119.453 million, Water Services Infrastructure Grant (WSIG) R34.390 million, Integrated National Electrification Programme (INEP) R56.436 million.

Honourable Speaker, we commit ourselves in ensuring that in future funds are retained within the province and reprioritized to performing municipalities.

In this 2022/2023 municipal financial year, three municipalities benefited a total of R75 million from grant re-allocations due to good performance in MIG. Those municipalities are: Mahikeng LM which received R40 million, Naledi LM which received R25 million and Tswaing LM which received R10 million. These are indeed pockets of excellence that must replicate in other municipalities.

Furthermore, the department has dispatched a team consisting of officials from Cogta and Provincial Treasury, to assist municipalities to spend their infrastructure grants. We will collaborate with sector departments such as the national department of Cooperative Governance (DCoG), the Municipal Infrastructure Support Agent (MISA), Department of Water and Sanitation as well as Mineral Resources and Energy, to develop a recovery plan for those municipalities under-spending on conditional grants allocations. This exercise is underway already.

Water and sanitation

A report by the department of Water and Sanitation has revealed that the implementation of water services is at risk of not being achieved amidst the current challenges of population growth, poor project planning by Water Services Authorities, slow implementation of projects, and low expenditure of grants.

According to the report, 80% of our municipalities experience a huge backlog on water and sanitation infrastructure, which makes it difficult to reduce backlog in the affected municipalities.

As part of departmental intervention to reduce the water and sanitation backlog, we have completed Seolong water supply infrastructure project during the past financial year 2022/2023. The community in this area struggled for many years to access basic portable drinking water because all their boreholes had ultimately dried up. One hundred and fifty-three (153) households currently benefit from the pipeline including Bataung Ba Moubana Traditional Council, Seolong Clinic and a local school in the area.

We further proud ourselves to announce that, over 2 340 households in Rietpan and 3 482 households in Driefontein now have access to uninterrupted supply of clean drinking water, through the Rietpan-Driefontein Water Supply project in the Ramotshere Moiloa Local Municipality.

For the 2023/24 financial year, the department has set aside R60 million to intervene in water and sanitation challenges across our communities which will focus on the current running projects and the new initiated projects.

We will be finalizing projects such as Christiana sewer reticulation, Mazista water supply, Rooigrond waste water treatment plant and Rooigrond water augmentation.

With regards to the new projects, we will be addressing water and sanitation challenges in all four districts as follows:

  • Dr Ruth Segomotsi Mompati District: Refurbishment of boreholes in various villages within the KagisanoMolopo Local Municipality
  • Dr Kenneth Kaunda District: Replacement of 5 dysfunctional pumps at Balkfontein and Leeudoringstad pump stations
  • Bojanala Platinum District: Koffiekraal water supply
  • Ngaka Modiri Molema District: Refurbishment of Oppitopie pump station and Sandvlakte sewer reticulation within Ramotshere Moiloa Local Municipality
  • and optimization of the ground water sources in Ditsobotla Local Municipality
     

As part of this implementation, we will also be addressing sewer challenges in Agisanang through implementation of a bulk sewer line project. The project entails the construction of a bulk sewer outfall, refurbishment of the sewer pump station and connection to the new Sannieshof waste water treatment works. Through implementation of this project, we will be assisting Tswaing Local Municipality to eliminate the current persistent sewer overflows and spillages in Agisanang township.

In ensuring sustained support and integrated planning on water and sanitation service provision within our province, a Provincial Political Steering Committee which constitutes of the Minister of Water and Sanitation, the Premier, MEC of Cooperative Governance Human Settlement and Traditional Affairs, Executive Mayors, Mayors and Traditional Leaders, has been established. This structure is supported by the Provincial Technical Steering Committee which constitutes ofofficials from the Department of Water and Sanitation, national and provincial departments of Cooperative Governance and Traditional Affairs, municipalities, water boards and the business sector.

Disaster management

Madam Speaker, we are experiencing unprecedented global dimate change, which ushers in all kinds of disasters such as heavy rains, veld fires and heat wave. We have to be proactive in dealing with these disaster incidents. Our Provincial Disaster Management Centre is working very hard in co-ordinating all sectors to respond accordingly.

Disaster response and mitigation requires cooperation and mutual trust between government and communities. We are all familiar with the flood disasters that affected the community of Deelpan, impacting on 800 households. 242 of these households required relocation from flood-prone wetlands to a more suitable area, locally. We are pleased to announce that the community have agreed to be relocated from the flood-prone land they are currently occupying to a safer settlement, a portion of the farm named Deelpan 106, following allocation of land by Kgosi Molete.

We have recently appointed a contractor to conduct a Geo-technical assessment in the area and we hope that the work will be done with necessary speed it requires, to allow the department to build houses.

Honourable Speaker, with regard to fire disasters, in 2022/2023, the department procured a state-of-the-artfire fighting and an emergency rescue pumper worth R6 million, for Mahikeng Local Municipality. We remain confident that this investment will go a long way in speedy interventions, to safeguard our communities and property from falling victim to fire disasters.

The department, through the Provincial Disaster Management Centre, will invest R6.7 million in procuring fire fighting equipment and vehicles for Dr Ruth Segomotsi Mompati District Municipality. The following municipalities will also be assisted with fire-fighting equipment: Moretele, Kgetlengrivier, Moses Kotane and Naledi.

The Provincial Disaster Management Centre will in the current financial year, acquire ICT equipment which will enable the Centre to have interoperable disaster management information early warning system.

Traditional affairs

Madam Speaker, we pause here and take a deep breath in honouring our traditional leaders who lost their lives over the past six months. The institution of traditional leadership lost five Dikgosi. The latest was Kgosi MS Zibi, the former Chairperson of the North West House of Traditional Leaders, who led with dedication in pursuit of transforming our Traditional Councils.

Madam Speaker, our Traditional councils inthe province ought to have been reconstituted by the 31st March 2023. However, that did not happen, due to the impending dispute between traditional leaders across the country and the Minister Cooperative Governance and Traditional Affairs over the formula meant to determine the number of members of traditional councils.

At the CoGTA MINMEC meeting held on the 12th May 2023, attended by representatives of the National, Provincial and Local Houses of Traditional and Khoi-San leaders, Minister Thembi Nkadimeng presented a revised formula on this matter. After the deliberations, the National House was tasked to engage with Provincial and Local Houses of Traditional and Khoi-San leaders on the revised formula and revert back to the Minister inAugust 2023. The intention is to commence with the re-constitution of traditional councils in September 2023.

As part of our ongoing support from the Department, a special working session between Dikgosi and MEC responsible for COGHSTA was convened in Sun City from the 12th - 14th April 2023. Other sector stakeholders such as MECs and their Accounting Officers and organized business were invited to the session. The session emerged with a plan of action aimed on addressing issues of mutual interest raised by Dikgosi. A follow-up session will be held soon to assess the progress.

We have also undertaken to address the issue of ex-gratia payment that is due to the Members of the Provincial House of Traditional Leaders who served in the 2017/22 term. Our established practice makes them eligible to begranted such ex-gratia payment. The department will be processing their payment during the second quarter of the current financial year.

Madam Speaker, the new democratic, post-apartheid government inherited traditional leadership disputes from both the homeland and old South African regimes. Our records show that these disputes were historically subjected to numerous commissions of inquiries but could not be ultimately resolved. Therefore, it became incumbent upon the present government to come up with dispute resolution mechanisms to address such accrued disputes and any new disputes.

Madam Speaker, whilst we respect and acknowledge the democratic principles envisaged by the dispute resolution regime governing traditional leadership, it is however disconcerting to note a trend by the forum-shopping complainants, who persistently revive settled disputes from one government administration to the other. This tendency is an affront to the noble intent of this dispute resolution mechanism.

In furtherance of our responsibilities in the current legislative scheme, we are finalizing the establishment of the investigating committee under section 59 of Traditional and Khoi-San Leadership Act, 2019, which will investigate the disputes in our traditional communities and make recommendations for a speedy resolution of these disputes. This committee will effectively start its work on the 1st of July 2023.

Honourable Speaker, inthe spirit of affirming the role of the Provincial House ofTraditional and Khoi-San Leaders on traditional leadership disputes, we have advised the stakeholders that disputes must first serve in the House before they can be referred to the MEC.

Furthermore, we have been deliberate and pointed to review the structure of Chief Directorate of Traditional Affaires in the department with the sole intent of bringing additional warm bodies to deal decisively with issues affecting our traditional communities and strengthening of traditional councils.

Honourable Members, herein below receive the budget allocation for the Department of Cooperative Governance and Traditional Affairs 2023/2024.

Budget allocation

Equitable share: R656 593 000 Six Hundred and Fifty-Six Million, Five Hundred and Ninety-Three Thousand Rand

Conditional Grants: R2 167 000 Two Million, One Hundred and Sixty-Seven Thousand Rand

Revenue Receipts: R526 000 Five Hundred and Twenty-Six Thousand Rand

Total: R659 286 000 Six Hundred and Fifty-Nine Million Two Hundred and Eighty-Six Thousand Rand

Budget Per Programme

Administration R170 784 000 One Hundred and Seventy Million, Seven Hundred and Eighty-Four Thousand Rand

Local Governance R197 580 000 One Hundred and Ninety-Seven Million, Five Hundred and Eighty Thousand Rand

Development and Planning R138 427 000 One Hundred and Thirty-Eight Million, Four Hundred and Twenty-Seven Thousand Rand

Traditional Affairs R152 495 000 One Hundred and Fifty-Two Million, Four Hundred and Ninety-Five Thousand Rand

Total R659 286 00 Six Hundred and Fifty-Nine Million, Two Hundred and Eighty-Six Thousand Rand

Human Settlements

Honourable Speaker, allow me to present the policy statement for the North West Department of Human Settlements, Budget Vote 14:

As we move forward, we take heed of the words of the President of South Africa, Cyril Ramaphosa, during his State of the Nation Address when he said,"if we work together and act boldly and decisively, leaving no one behind, we will be able to resolve our challenges". Ours is to ensure that our people are provided with decent housing, living in communities where they can timeously access services freely, send their children to school and exercise their right of association in a thriving environment. We owe it to them to be seen acting together to find solutions, acting boldly and decisively to change their lives for the better. These are our commitments and achievements in this quest to inspire a better human settlement for our people.

Mud houses

Madam Speaker, our province is predominantly rural and where mud houses still exist which dates back to prior 1994. We had set aside a budget of R72 353 million to eradicate 520 mud houses in the 2022/23 financial year. We have exceeded our target by spending R109 464 million, completing 780 houses to date. This achievement demonstrates our commitment to progressive improved the living conditions of vulnerable communities.

In our further quest to ensure the realization of the Freedom Charter which declared that,"There shall be houses, security and comfort", the department has planned to eradicate an additional number of 923 mud houses, at a budget of R130 272 million in various districts for this financial year. Indeed this is "The year of decisive action, to advance the people's interest!" We also do this as a caring government which puts the needs of its people first.

Asbestos roofs

Honourable Speaker, we need to eradicate asbestos roofs inthe Province. For this purpose we have set aside R10 million for assessment to determine the extent of affected beneficiaries in order to deal decisively with this issue from this financial year going forward. Engagement with local municipalities was undertaken on the 26th May 2023 for them to indicate which areas have asbestos roofs. We are engaging the NHBRC to conduct an assessment and quantification of the replacement of asbestos by the end of July 2023.

Blocked projects

Madam Speaker, we have 76 blocked projects which comprise 8 746 units. The department is in the process of procurement of geotechnical and dolomitic assessment on the projects that are within the 10-year time-frame. The department will undertake Geotechnical and dolomite studies in areas which falls outside the 10 year study timeframe during this financial year, for which a budget of R52 million has been set as aside.

Mmusa-kgotla, I would like to inform the House that Human Settlements Department will be including a number of all blocked projects into the current active units, as they have been budgeted for in this financial year. We are currently going on procurement for the projects that could not be accommodated in active projects.

Mmusa-kgotla, kana kgetsi ya tsie e kgonwa ka go tshwaraganelwa e bile moroto wa wesi ga o ele. Re le lefapha re tshwaraganetse kgetsi ya tsie le batsaya karolo mo mererong ya bonno jwa baagi (human settlements).

We are delighted that we have just conduded a two-day Provincial Human Settlements Summit with a high note. The sole purpose was to attract investors and explore alternative building technology to fast-track housing delivery of quality, energy efficient and sustainable human settlements.

During the summit, the department concluded MOUs with 6 Alternative Building Technology (ABT) companies on investment and delivery of 95 thousand housing units of various typologies over the next 5 years. The Ready kit and IERA (Innovative Economy Revitalisation Agency) committed to provide training to twenty youth and women owned companies on Alternative Building Technology including solar energy installations. In addition, they had also made an undertaking to build a permanent training centre inNorth West Province.The Brazil,Russia India, China, South Africa Women Business Affiliation (BRICS WBA) South African Chapter, has committed to provide training and capacity building to women and youth in construction. Furthermore, a total of 7 houses were donated to needy families.

Above all, the department is working with a Canadian company with an intention of developing a green village in Dr. Ruth Segomotsi Mompati District. The green village will be designed in such a way that it has agricultural activities, industries, all social and economic amenities and will be off the grid with its own sanitation facilities.

Madam speaker, we are also in a process of signing an agreement with NHFC for the implementation on Extended Peoples' Housing Process (EPHP) in Motswedi village in Ramotshere Local Municipality, which will assist in yielding 180 units over two financial years.

Houses to be delivered across the province

Honourable members, in the previous financial year we promised the people of the North West Province that we were going to build 4 879 houses across the province, of which 3 918 units were completed. For 2023/24 financial year, we are planning to build 5 409 units at a cost of R780 million.

Mmusa-kgotla, we had planned to install internal services before we can even begin with foundations or putting top structures. This approach further responds to the call made by our Premier, that new human settlements projects should be delivered in an integrated manner in areas where there are internal services and bulk infrastructure.

For the previous financial year, we had planned to install services in 6 364 sites across the province. We have exceeded this target by completing 7 245 serviced sites, with a total expenditure of R883 million. For this financial year, we will continue to service sites in all our projects. Our plans for this financial year are to install 7 264 serviced sites across the province.

Madam Speaker, the Provincial Government will collaborate with the private sector, particular1y Sibanye Stillwater, the national Department of Human Settlements, Rustenburg Local Municipality, Madibeng Local Municipality and the Housing Development Agency to launch a housing project in Marikana Extension 13 in the 2023/24 financial year, targeting 3 400 beneficiaries.

Our target for housing in mining towns was 1 418 units on a budget of R627 million for 2022/23. We have made significant progress in this area, completing 1037 houses to date with an expenditure of R382 million. For this financial year we intend building 1 476 units inmining communities to further improve the lives of our people. We further urge our municipalitiesto apply their by-laws, in curbing further invasion of private land and the ever-continuous mushrooming of informal settlements.

Military veterans programme

The department had planned to deliver 97 military veterans' houses for 2022/23 financial year. However, the key challenge was as a result of delayed approval to amendments on the new proposed house specifications that most of the Military Veterans beneficiaries wanted. Due to financial constraints, MinMEC resolved that the current design and specification be implemented for now. The department has since arranged a meeting with Military Veterans in June 2023 to have a consultation with beneficiaries that are willing to accept the houses as per the current specifications, so that the department can proceed to build the houses.

Catalytic proejcts

The department has two catalytic projects which are Matfosana, N12 West and Bokamoso Rustenburg. These projects are Public Private Partnership projects.

Matlosana Catalytic: The project was valued at R8.3 billion at inception. It is critically important for me to inform the House that the project is also government led, contributing 87.1 percent and private equity of 12.9 percent which as of today has delivered 6 641 sites and bulk water, bulk outfall sewer, bulk storm water, primary access road and bulk storm water for R1 billion.
Bokamoso Catalytic Project was valued at R1 billion during inception. The Rustenburg Platinum Mine donated land to the value of R30 million and contributed R130 million for a wastewater treatment plant. Thus far the department has spent R320 million and has constructed 1000 housing units and 4000 sites. The project is continuing smoothly. Construction of housing units is under way, with 500 units at different milestones.

Skills development

The department in partnership with HOA will be launching a skills development project on 167 SMME in the Province by the end of June 2023 to the value of R18 million. Over and above that, the department will identify 35 Youths within Municipalities per district to undergo skills development training in the built environment. The project will commence in Dr Kenneth Kaunda District and other districts will follow.

Social housing

Honourable Members, the Social Housing Programme is implemented through the Social Housing Regulatory Authority (SHRA) in the Province. The current approved projects include the Gabonewe Social Housing project which is under construction in Ledig to deliver 801 social housing units; another project which has been approved and implemented by Bokone is in Tlhabane West, and it is to yield 700 units.

The Province has a number of social housing projects which have been supported and are currently undergoing approval processes at the SHRA for finalisation. Once approved, the following projects located in JB Marks LM will yield a number of social housing units, which are 600 units in Miederpark and 1200 units in Dassierand.

Three projects in Mahikeng, which are Morena Manor, meant to yield 966 units, Mahikeng Extension 39, meant to yield 620 units and Magonare Heights, meant to yield 300 units. The projects will be implemented by various Social Housing Institutions through funding which will be done through the SHRA in collaboration with the Province.

Marang social housing

The big elephant in the North West housing space is Marang Social Housing in Mahikeng. This issue has been handed over to law enforcement agencies and will sit before the court by 06 June 2023. Once judgment has been handed down, Social Housing Regulatory Authority will then move in and complete the project.

Community residential units  (CRU)

The department has to date constructed 6 CRU projects within the Province. The 6 CRUs are in Boitekong, Marikana, Moses Kotane, Mahikeng, Matlosana and JB Marks. Of the 6 CRUs, 3 have been handed over to local municipalities which are Mahikeng LM, Moses Kotane and Rustenburg Local Municipalities. The department will begin with the handover of the remaining CRU Projects to the relevant local municipalities and the department will then urge the relevant local municipalities to start billing tenants.

In JB Marks municipality, a Property Specialist was contracted by the department tomanage the (100) Community Residential Units on behalf of the department. Since the contract was signed, the company has been collecting rentals and maintaining the properties. However, the company has failed to account to either the Department or the municipality on its contractual obligations.

The department through the local municipality requested audited financial statements from the company, the request which it has not been honoured. Based on this recalcitrant attitude by this company, the department has decided to institute a legal process in order for appropriate relief to be granted. The department will afford this legal process the urgency it deserves.

Illegal occupation and sale of BNGS

Honourable Members, as government we deliver BNGs houses to restore dignity among our people. We do so as directed by the freedom charter, the constitution and the Housing Code of the Republic of South Africa. One is however disturbed by the information that our beneficiaries are selling these beautiful houses we build for them.

Government wants to create a legacy for families in this country. I want to urge those who are active participants in such acts to desist from doing so as there are many South Africans who would die to own a house like the ones we are building for beneficiaries. To that end, the department is implementing alternative building technology with a view of offering better appeal to the beneficiaries for them to have sentimental attachment to these houses.

We are also concerned about illegal occupation of houses built for our beneficiaries. Every house constructed in this Province has a specific beneficiary. The department in collaboration with municipalities, will deal decisively with such invaders, in line with municipal by laws, in order to restore the houses to their rightful beneficiaries.

Collaboration with North West University

The department will be undertaking a research study on the impact of climate change on the development of sustainable human settlements in the Province. The study will assist in proposing alternative ways to develop sustainable human settlements that can withstand the impact of climate change and better the quality of the lives of housing beneficiaries and communities at large.

The study will be undertaken through a collaboration with the University of the North West Centre for Environmental Management in the form of a post-doctoral study with an approximate budget of R200,000 (two hundred thousand Rand) over the next three (3) years.

Title deeds

Motlotlegi Mmusa-kgotla, re tlile go netefatsa fa re busetsa serodumo sa baagi barona, ka go ba abela makwalo-netefaletso thuo a semmuso a lefatshe(title deeds). During the last financial year, 6 578 title deeds were registered out of a target of 10
202. In order to ensure that in this current financial year the target is achieved, 25 conveyancers have been appointed to solely focus on the outstanding title deeds and allocated work for all projects in the 2023/24 business plan. In this financial year, the department has set a total budget of R29 million for the registration of 15 210 title deeds including beneficiaries verification.

Upgrading of informal settlement programme

Madam Speaker, Housing Development Agency (HOA) has been assigned by the national Department of Human Settlements, a responsibility to provide informal settlement upgrading support. It has further been assigned to undertake a rapid assessment and categorization of informal settlements within the City of Matlosana.

To this extent, the following settlements have received support in the 2022/23 financial year, and they are Jouberton Extensions 34 and 19, Kanana Extensions 16 and 5, Sieja, Sunnysite, Waterfall, Zanpan, Stilfontein, Mphebatho and Thonishata.

Installation of services for informal settlements upgrade will continue in the 2023/24 financial year targeting 7 223 sites across the province at a budget of R380 million. These will be implemented in Moses Kotane, Rustenburg, Madibeng, Maquassi Hills, Greater Taung, Mamusa, Naledi, Ramotshere Moiloa and Ditsobotla Local Municipalities. Bulk services will be implemented in Sunway village in Madibeng and Marikana Rooikoppies in Rustenburg to the amount of R133 million.

Performance of contractors

Honourable Members, we have been directed by the Honourable Premier when delivering his State of the Province Address for 2023, that we must address the issue of non-performance of contractors who deliver shoddy workmanship by, amongst others, ensuring that they will not be considered for future appointments by any government entity.In response to the Premier's call, in this new financial year, in applying redress against delinquent contractors, the department institutes a scale down of the project along with budget, terminates or blacklists culprits, depending on the outcome of the technical assessment.

First home finance

Madam Speaker, as of the 24th of February 2023,The Financed Linked Individual Subsidy Programme (FLISP) is now known as First Home Finance (FHF). The main purpose of this programme is to give property ownership opportunity to government and private sector employees, particularly those that our mainstream financial system has excluded from mortgage facilities.

This programme is targeted at the category of individuals who wish to own a home but do not qualify for low cost housing programme of government, because they earn above the maximum requirement, nor can they be provided a housing bond by the financial institution because they do not pass the threshold.

Madam Speaker in the past 3 financial years, the Financially Linked Individual Subsidy Programme has been performing very well with the following targets and achievements: in 2020/21 financial year, we targeted 40 beneficiaries and the department over-performed by an achievement of 86, in2021/22 financial year, the target was 86 and we over-achieved by 147, and finally in 2022/23 financial year, the target was 65 and there was an over-achievement of 115. For the current financial year we are targeting 200 beneficiaries.

Procurement of land parcels

Honourable Speaker, in 2022/23 financial year, the department utilised R13 007 394 million to acquire land parcels in the following areas: Rustenburg, Portion 61 of farm Rooikoppiesat at 8,2 Ha; Makaunyane land property in Moretele at 483 hectares; in Madibeng, Portions 504 and 505 of the farm Roodekopjes of Zwartkoppies at 27,02 hectares; Groenkloof portions 50 and 55 in Majakaneng at 45 hectres and lastly, Jouberton in Matlosana, at 107 hectres.

For the 2023/24 financial year, the department commits to acquire land parcels inthe following areas at a cost of R122 million: In Madibeng: Oukasie, Klipgat and Majakaneng. In Mamusa: Glaudina, Schweizer Reneke and Avonster. In Ditsobotla: Rietvlei. In Rustenburg: Marikana, Rooikoppies and Boshoek. In Maquassi Hills: Leeudoringstad. In JB Marks LM, the department is in negotiations with other departments such as Agriculture and Rural Development, Public Works and Roads to transfer various properties to the municipality.

North West housing corporation

Madam Speaker, the current Act of the NWHC, Act No 24 of 1982 as amended is not aligned with the Public Finance Management Act (PFMA) and other policy changes. Upon my appointment in November 2022, we embarked on the process of repealing the Act. Now I can confirm that the draft Bill is in place for public consultations and due legislative processes. The entire process should be concluded before the end of this financial year.

Township proclamations and title deeds

The erstwhile Bophuthatswana government did not enact proclamations on establishment of its townships. Such an anomaly continues to haunt us, because it becomes difficult to issue title deeds without a township proclamation. To circumvent this, in the past 3 years, the following townships were prodaimed: Madikwe, Mothutlung and Meriting which resulted in issuing of 900 title deeds. We are pursuing the following townships for proclamations, being Ga-Rankuwa Zone 1 and 2,Mabopane A and 8, Winterveldt 1 and 2.

Mega projects (Mixed Human Settlements)

The Honourable Premier did highlight during the State of the Province address this year about the consideration to implement mega projects. In his speech he said that a panel of experts on Mega Infrastructure Projects identified 185 projects and prioritised 8 critical projects.

These projects include the Smart City development, Bojanala Special Economic Zone, Agri-processing and Agro-hubs, water and bulk water supply, health and large urban precinct developments, renewable energy and solar production and broad band connectivity. These interventions will also contribute towards our vision of agriculture and mining beneficiation.

To this end, Madam Speaker the NWHC has concluded feasibility studies and business plans to source funding for bulk infrastructure for these mixed human settlements. We call upon the private sector to support these initiatives because government cannot do it alone. If these business plans end up securing the necessary funding, the NWHC will become a construction site during our lifetime.

Mawiga (Mabopane, Winterveldt, Ga-Rankuwa and Kudube)

Honourable Speaker, there were allegations of maladministration regarding the sale and transfer of properties by the NWHC and City of Tshwane. The national Portfolio Committee on Human Settlements directed that the CEO of the NWHC open a case against the officials who allegedly sold the properties fraudulently. A letter has since been written to the Tshwane City Manager to help expedite the process. The MAWIGA problem is currently receiving attention through broader inter-provincial structure, led by the national Department of Human Settlements.

Honourable Speaker, let me take the House in full confidence that Morula hotel, is still the property of the NW government and it has not been sold to date, because the EXCO has not granted such an approval.

Honourable Speaker, I table before this August House Budget Vote 14 for the 2023/24 financial year.

Budget per programme    

Administration: R 175 965 000 One Hundred and Seventy-Five Million, Nine Hundred and Sixty-Five Thousand Rands
Housing Needs, Planning R 30 942 000 Thirty Million, Nine Hundred and Forty-Two and Research Thousand Rands
Housing Development R 1 792 336 000 One Billion, Seven Hundred and Ninety-Two  Thousand, Three Hundred and Thirty-Six Rands
Total R 1 999 243 000 One Billion, Nine Hundred and Ninety-Nine Thousand, Two Hundred and Fourty Three Thousand Rands

Kwa bokhutlhong Mmusa-kgotla, please allow me to take this opportunity to thank the Honourable Premier Kaobitsa Bushy Maape for his leadership and confidence in me to steer this ship. We will continue to bring about change and inspire hope.
Modulasetilo wa Ntlo-ya-segosi ya Profense, Kgosi Maotwe, le dikgosi tse di fano, my organisation and my political home, the African National Congress, I remain committed in serving the people of our province.

Modulasetilo wa komiti ya lefapha, Honourable Aaron Motswana, and Honourable Members, it is not a simple journey but your oversight function has made this journey bearable. Colleagues in the Provincial Executive Council; I cannot thank you enough for the support that we exchange during the integration of our work to ensure that we all achieve our mandates of delivering services to our people.

Mmusa-kgotla, my heartfelt gratitude to the sector stakeholders and municipalities. Our Head of Departments, Ms Kgomotso Mahlobo, Dr Ben Bole and staff of both departments; ours is to continue to thrive because "there is no time to waste time". I can never thank you enough. The staff in my office, my comrades and colleagues in the Legislature, ke leboga go menagane. Dithotloetso le dikgakololo tsa Iona di amogetswe ka dinako tsotlhe.

I remain grateful to my wife and family for the pillar of support they are.

I thank you.

Province

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