North West Department of Local Government and Human Settlements Budget Vote 09 delivered by MEC Galaletsang Fenny Gaolaolwe at the North West Provincial Legislature on the 09th May 2017
Honourable Speaker of Bokone Bophirima Provincial Legislature
Honourable Premier of Bokone Bophirima SOR Mahumapelo
Honourable Members of the Executive Council
Honourable Members of the Provincial Legislature
Executive Mayors and Mayors
Speakers of various Municipalities
Chairperson of SALGA
Councillors Present here
Magosi a rona a a tlotlegang
Leaders of Political Parties
Director General of Bokone Bophirima Administration
Head of Department of Local Government and Human Settlements
Municipal Managers
Representatives from State Owned Entities
Government Officials
Members of the Media
Distinguished Guests
Ladies and Gentlemen
Baagi ba Bokone Bophirima,
Dumelang!
It is a great honour and privilege for me to present the budget vote and policy statement of the Department of Local Government and Human Settlements for 2017/18 financial year.
This budget vote comes at a time when our country celebrates the life and legacy of Rre Oliver Reginald Tambo who would turn 100 years this year, had he lived.
He was one of the best generation of leaders that the ruling party, the ANC has ever produced in pursuit of freedom. He devoted his entire life for unity, peace and freedom. He led our people and our movement during the most trying period of our history.
Today we are a living testimony of his ideals and those of our struggle icons who have walked the path of freedom in pursuit of a better live for all.
Motlotlegi – Mmusa Kgotla, Ruri ga re kitla re lebala bonolo kwa re tswang teng. Ke ka moo, re sa lapeng go diragatsa mananeo a thebolo ya ditirelo, a Puso ya Botlhano e a beileng mo pepeneng go netefatsa fa re tlhabolola matshelo a bagarona mo metseng, metsesetoropo le ditorotswana mo porofenseng ya Bokone Bophirma.
We welcome once again, the newly elected councillors who assumed office last year to take forward the aspirations of our struggle icons and those of the masses of our people who voted them into power.
Furthermore, we congratulate the newly elected leadership of SALGA in the province. The Department will work with SALGA to improve the quality of services and good governance in municipalities.
Honourable Speaker, we welcome and support the Ten by Ten campaigns which were launched by Honourable Premier. These campaigns are implemented from the 10th to 20th of every month.
The Department has issued a directive that all the municipalities must adopt these campaigns in council sittings. Furthermore, the Department has established a technical team that will coordinate and monitor implementation of these campaigns in all the municipalities. We encourage municipalities to work with all stakeholders to implement these campaigns in the spirit of Saamtrek and Saamwerk.
Motlotlegi-Mmusa Kgotla, ntwa kgolo ke ya molomo, ya matsogo ga e age motse. Ka jalo, re ikuela mo setshabeng sa rona go dirisa ditshono tsotlhe tsa go bua le puso di akaretsa maloko a dikgaolo potlana, dikantoro tsa Setsokotsane, mafapha a puso, dikantoro tsa bakhuduthamaga le mekgwa e Puso ya Botlhano e e buileng pepeneng go buisana le baagi. Go tsosa dikgaruuruu le dikhuduego tse di sa tlhokegeng, ga se tharabololo ya dingongorego tsa baagi.
Re ikuela mo baaging go buisana le puso ntle le go itseela molao mo motsogong le go tlhotlheletsa bosenyi go sa tlhokege.
Integrated Development Planning (IDP)
Motlotlegi Mmusa-Kgotla, Tloga tloga o tloga kgale, modisa wa kgomo o tswa natso sakeng.
All our municipalities in the province have already submitted and adopted their IDP process plans and finalised their 4th generation draft IDP’s in March this year. Once these strategic documents are finalised with the assistance of the department, they will guide the delivery of services by our respective municipalities in line with the five concretes of the current Administration.
The department with its strategic partners, will hold workshops to empower councils and council committees to strengthen their oversight capacity to ensure that their respective administrations improve their performance on the implementation of their IDPs, and service delivery budget implementation plans (SDBIPs) in line with back to basics outcome of Good Governance.
Honourable Speaker and Members, in the reporting period we have launched the first ever Awards in the province named after one of the stalwarts of freedom. These awards are called Moses Kotane Municipal Performance Excellence Awards and will be held on an annual basis. Executive Mayors and Mayors have already signed the pledge during the inauguration of these awards to commit their municipalities to participate fully in all the categories of Back to Basic Ten Point Plan.
During the launch we acknowledged the nationally recognised municipalities for improved performance in audit outcomes and risk management for 2014/15 financial year.
These municipalities include: Dr Ruth Segomotsi Mompati District Municipality, Rustenburg Local Municipality, Lekwa Teemane Local Municipality, Greater Taung Local Municipality, Maquassie Hills Local Municipality, Ratlou Local Municipality and Ramotshere-Moiloa Local Municipality. Keep up the good work.
Spatial Planning and Land Use Management Act (SPLUMA)
Motlotlegi Mmusa Kgotla, ruri ga re kitla re lebala kwa re tswang teng.
Before 1994 planning was designed to serve a different political idea of segregation and privilege. When we took office, we inherited complex and disjointed planning systems which manifested unequal, incoherent and inefficient settlement patterns.
Thanks to the Spatial Planning and Land Use Management Act which has assisted us to lay down a solid foundation for inclusive planning. Our municipalities are being tasked to take charge of spatial transformation and its objective must meet the need for mobility, access and economic development that drives local and national growth prospects.
We have finalized the North West Spatial Planning & Land Use Management Bill (NWSPLUMB) which has been presented to this august House and was subjected to public participation as required by the law. This move has strengthened our ability to make an impact in the transformation of our spatial landscape.
To date, 16 municipalities have bi-laws, 10 municipalities have gazetted their bi-laws while the remaining municipalities are in the process of gazetting theirs.
Municipal Development and Planning
Honourable Speaker, community works programme which is an innovative offering from government meant to provide job safety net for unemployed people of working age is bearing fruit. In the year under review, the implementation of this programme has yielded Eighteen Thousand (18 000) job opportunities in various municipalities and we will this year, increase our target to Nineteen Thousand (19 000) jobs, reaching out to other municipalities which have not benefited from this programme.
An amount of Two Million, four Hundred and Thirty Seven Thousand (R2 437 000) has been budgeted to implement Expanded Public Works Programme to alleviate poverty and provide income through temporary work for the unemployed.
Provincial Infrastructure Grant
Honourable Speaker, in the reporting period we have spent an amount of One Hundred and Fourteen Million, Two Hundred and Thirty Nine Thousand (R114 239 000) to fast track water and sanitation projects in Ramotshere Moiloa , Mafikeng, NW405, Matlosona, Greater Taung, Madibeng and Moretele Local Municipalities.
In the current financial year we are continuing with intervention on water and sanitation in different municipalities. We have also issued a directive to municipalities to prioritise water and sanitation in their 2017/18 budget.
Municipal Infrastructure Grant
This year, the municipal infrastructure grant will increase from One Billion, Six Hundred and Fifty Four Million, Three Hundred and Forty Nine Thousand (R 1 654 349 000) to One Billion, Seven Hundred and Thirty Three, Four Hundred and Fifty Nine (R 1 733 459 000) in order to address infrastructure backlogs in VTSD areas.
We would like to congratulate those municipalities which have improved on overall spending of this grant. The municipalities that I am talking about, have received further allocations from those municipalities within the province that did not perform well on this grant.
At the end of March this year Tswaing, Madibeng, Mahikeng, and Ramotshere Moiloa local municipalities were at 70% expenditure of their municipal infrastructure grant. The Department, in partnership with FEED and district municipalities will assist those municipalities that have difficulties in spending their grants.
Honourable Speaker, the department is also encouraging municipalities to budget for maintenance of existing and new infrastructure.
Disaster Management
Motlotlegi-Mmusa Kgotla, ditlamelwana tsa pula di baakanngwa go sa le gale. Go netefatsa fa re le malala o laotswe, re thusitse mafapha a puso go tlhama maano a go samagana le matlhotlhapelo a ka gale a welang bagarona ka tshoganyetso.
Monongwaga, re tla tlhoma semmuso tikatikwe ya tsamaiso ya matlhotlhapelo ya porofense ya Bokone Bophirima e e tla dirisediwang go loga maano le go ikarabela ka tlhamalalo ka nako ya matlhotlhapelo a akaretsa, thoromo ya lefatshe, merwalelo, leuba le koduo nngwe le nngwe e e ka re tshoganyetsang.
Re beetse thoko madi a a kana ka di million di le lesome (R10 Million) go samagana le dikoduo le matlhotlha-pelo mo porofenseng. Re tla dirisa madi ano gape go natlafatsa ditikatikwe tsa matlhotlhapelo go di kgontsha go rebola ditirelo mo go bomasepala le mo mafapheng a puso.
Drought Mitigation plans
Honourable Speaker, Long awaited rains have brought some relief for the three year span of drought in the province and the country at large. We are grateful to God Almighty.
The same torrential rains have recently caused destruction to 841 houses and further One Thousand and Fifty Eight (1 058) mud houses were flooded across the province, making some important amenities such as schools, clinics and some residential areas inaccessible.
We, however, warn our people that the drought is not yet over despite heavy rains. We therefore, urge all of us to continue with drought mitigation strategies which include awareness campaigns, water resource management and establishment of fodder banks.
The Department through Provincial Disaster Management Centre has established a drought mitigation task team which will ensure the implementation of these strategies.
Waste Management
Honourable Speaker, waste management and cleanliness is a serious cause for concern in many municipalities.
To address this concern, we will partner with North West Development Corporation to enrol a number of municipalities in waste management programme to equip them on alternative waste management methodologies which protects the environment and further create employment in VTSD areas.
We will pilot this intervention in five municipalities which include Kgetleng-River local municipality, Mahikeng local municipality, Maquassie Hills local municipality, Mamusa local municipality and Tswaing local municipality. We have set aside an amount of seven million (R7m) for this purpose.
Local Economic Development
As per our Honourable Premier’s pronouncement on growing local economies, we have agreed with the municipalities that Local Economic Development (LED) be placed in the Mayor’s Offices in order to provide leadership and enhance industrialisation to ensure radical economic transformation in our lifetime.
We have already started to identify some projects through our one-on-one sessions with municipalities to fast track local economic development initiatives.
We encourage local municipalities to utilize 5% of MIG allocated for LED infrastructure projects and also to reinfence 15% of MIG for sport and recreation facilities.
Municipal Finance and Support
Honourable Speaker, we have noted with great disappointment, a regress in the 2015/16 municipal audit outcomes. To this end, the Department together with the Department of Finance, Economy and Enterprise Development, has put up a package of assistance for our municipalities, which include strengthening oversight on municipal finances.
We have capacitated our Municipal Public Accounts Committees (MPACs) which assist the Council to hold the executive and municipal entities accountable for the effective and efficient use of municipal resources.
Operation Clean Audit
We have also initiated OPERATION AUDIT ROOMS in partnership with FEED to support municipalities that are receiving disclaimer audit opinions. This operation focuses on the establishment and maintenance of proper records and information management system and further provide support to strengthen municipal audit committee and internal audit structure whose responsibility is to review the financial records of municipalities.
Honourable Speaker, we wish to inform this House that the Department has submitted forensic investigation reports to the affected municipalities; namely: Ditsobotla, Naledi, Ngaka Modiri, Matlosana and Ramotshere-Moiloa. The Department together with FEED will continue to monitor implementation of the recommendations to ensure that consequence management is implemented.
Municipal Property Rates
Honourable Speaker, Municipal Property Rates Act, regulates the power of a municipality to impose rates on property and further allows municipalities to make provision for fair and equitable valuation methods of properties. To this end we have provided the necessary support to the municipalities on how to compile and maintain valuations rolls including promulgation of rate tariffs.
The Department has invoked Section 139 (1) (b) in three municipalities on valuation rolls: namely; Ditsobotla, Mahikeng and Lekwa-Teemane local municipalities. The intervention is meant to assist the affected municipalities not to lose much needed revenue and to avoid litigations.
Shared Services Model
Honourable Members, the Shared Services Model has been adopted by the Provincial Executive Committee and the municipal councils. Through this intervention, we have managed to improve internal audit function, risk management, functionality of audit committees, good governance and improved capital project expenditure.
Municipal Administration
We have continued to discharge our departmental mandate to support and monitor municipalities.
In the reporting period, nineteen (19) local municipalities have been monitored and supported on the establishment of ward committees. Three Hundred and Ninety Nine (399) out of Four Hundred and Seven (407) ward committees have been established. We are currently in the process of assisting eleven outstanding wards to establish their ward committees.
The department will continue to support municipalities to build leadership and management capacity of ward committees to ensure that they are responsive to the community needs.
We have conducted induction workshops on the role and responsibilities of wards committees across the province.
Honourable Members, we are grateful to announce that the current NW405 municipality has registered significant progress. The merger of two administrations is at 90% completion including rationalisation of policies and bi-laws. The placement of staff will be finalize as a matter of urgency. Financial matters and systems are scheduled to be finalised by 30th June 2017 with the exception of the two separate valuation rolls whose term will be valid until June 2018.
We will ensure that the municipalities appoint officials with relevant qualifications, skills and experience.
Honourable Speaker, we have managed to present the close-out report on interventions in terms of Section 139 of the Constitution to the affected municipalities.
The Department has requested those municipalities to develop action plan on the implementation of the recommendations and we will monitor progress.
As pronounced by Honourable Premier, we are monitoring ward councillors community meetings. This platform must also be used to provide update and feedback to the communities. The Department has developed monthly reporting tool for ward councillors based on Back to Basic Pillars. The Speakers are entrusted to develop action plan on issues raised during ward councillors community meetings and table them during council sittings. The Mayors must report progress made during council sittings on the action plan.
Ward councillors must also use the Setsokotsane ward based operation centres to address issues affecting communities.
Housing Development
We wish to congratulate those contractors who have made us proud by winning both provincial and national Govan Mbeki housing awards. These contractors include Andisa Consulting which won national best youth contractor award.
Honourable Speaker, we have managed to host a successful two-day Housing Indaba and we intend to hold this indaba on an annual basis to share best practices and further address challenges confronting the housing sector. We wish to thank all the stakeholders for signing the pledge to work with the Department to achieve its integrated human settlement goals.
We want to thank the national Department of Human Settlements for pledging their support to unblock the housing projects in the province.
Our commitment to restore the dignity of our people, will remain unshaken until our people lead a better life. To this end, we have successfully managed to create Fifteen Thousand, One Hundred and Eighteen (15118) housing opportunities across the province. These include service sites and completed structures. Furthermore, we have transferred Seven Thousand, Three Hundred and Forty Seven (7 347) title deeds to the rightful beneficiaries in the reporting period.
Honourable Members, we acknowledge the challenge which the department faced with regard to Military Veterans housing programme which mainly related to qualification criteria of beneficiaries. This challenge has been resolved with the Department of Military Veterans. In this financial year 2017/18, the department has planned to deliver Two Hundred and Five (205) housing opportunities.
In the current financial year we are going to deliver Seventeen Thousand, Eight Hundred and Seventy Four (17 874) housing opportunities including Twenty Nine Thousand, Nine Hundred and Three (29 903) title deeds which include the backlog and the new title deeds.
Re beetse thoko madi a a fetang di bilione di le pedi go netefatsa fa re fitlhelela maikaelelo a rona.
In our drive to implement projects, we experienced challenges related to town planning which include township establishment and provision of infrastructure. Other challenges include slow performance of the contractors which resulted in under-expenditure of 9% of human settlement grant. We will, in the current financial year provide capacity and continue to tighten contract management to the affected municipalities and emerging contractors so that we turn the situation for the better.
We will in the current financial year, provide capacity to the affected municipalities and emerging contractors so that we turn the situation for the better.
Honourable Speaker, we are introducing a new human settlement delivery approach called the Bietjie-Bietjie maak meer within the context of VTSD preferential procurement strategy as pronounced by Honourable Premier in his State of the Province Address. We will give 50 units to small contractors of levels one to four (1 – 4). Bigger contractors will also be tied to a contract to support this initiative.
The approach will further increase the pool of participants in the construction of low cost houses and further break the monopoly of big companies in the construction industry.
We will hold workshops in all the districts to capacitate the emerging contractors on project and financial management.
Honourable Speaker, we are taking stern measures to uproot fraud and corruption in the implementation of housing projects. We have already terminated some of the contractors that have been involved in fraudulent activities. Officials who have also been involved in unethical behaviour are being suspended pending the investigations.
Furthermore we are putting systems in place to continue with our efforts to uncover fraud and corruption and we will act decisively.
Re dira se, go romela molaetsa kwa go bangwe ba ba dinalanyana wa gore letsogo la molao le leleele.
Honourable Speaker, housing is a moving target and it has its own unique challenges. When we deliver houses, informal settlements also start to mushroom in most of our municipalities. To mitigate this, we will, in the current financial year, develop a set of regulations to manage unapproved human settlements and the spread of informal settlements.
Re tla dirisana le Dikgosi tsa rona le baagi go rarabolola bothata jwa baipei, jo ka gale bo diyang thebolo ya ditirelo.
We have noted with great concern that trenches which have been transferred to municipalities in the past to build housing projects have not been fully accounted for. We will conduct investigations to make sure that we close this matter once and for all.
North West Housing Corporation
Honourable Speaker, the North West Housing Corporation has registered significant progress since we started the process of resuscitating it. An amount of R30 million has been set aside for this entity in this current financial year.
I am happy to report to this House that the corporation has audited its assets with a view of having a credible asset register and has made steady progress on the regularization of the occupants of its properties. To date, physical verification has been completed in seven municipalities in the reporting period.
The entity will be taking over the management of the Mahikeng Community Residential Units (CRUs) which will alleviate the rental housing shortage. The intention is to manage all future rental stock which the Department will construct going forward.
We further envisage the maximisation of revenue collection on all the entity’s properties. Funds generated will be channelled towards new human settlements initiatives. We will finalise the audit of all the assets that are in the borders of Gauteng, Free State and Northern Cape.
Honourable Speaker, allow me to outline the departmental budget allocation per programme as follows:-
|
PROGRAMME |
R'000 |
AMOUNTS IN WORDS |
|
1.ADMINISTRATION |
228 720 |
TWO HUNDRED AND TWENTY EIGHT MILLION, SEVEN HUNRED AND TWENTY THOUSAND |
|
2. LOCAL GOVERNANCE |
50 200 |
FIFTY MILLION, TWO HUNDRED THOUSAND |
|
3.DEVELOPMENT AND PLANNING |
164 555 |
ONE HUNDRED AND SIXTY FOUR MILLION, FIVE HUNDRED AND FIFTY FIVE THOUSAND |
|
4.HOUSING NEEDS PLANNING AND RESEARCH |
27 506 |
TWENTY SEVEN MILLION FIVE HUNDRED AND SIX THOUSAND |
|
5.HOUSING DEVELOPMENT |
2 238 181 |
TWO BILLION, TWO HUNDRED AND THIRTY EIGHT MILLION, ONE HUNDRED AND EIGHTY ONE |
|
TOTAL DEPARTMENTAL PROGRAMMES |
2 709 162 |
TWO BILLION, SEVEN HUNDRED AND NINE MILLION, ONE HUNDRED AND SIXTY TWO THOUSAND RAND |
Kwa bokhutlong Motlotlegi-Mmusa Kgotla, ke leboga Tonakgolo Mahumapelo ka boeteledipele jo bo manontlhotlho jwa go isa Bokone Bophirima kwa pele.
I thank the ruling party, the African National Congress for entrusting me with the responsibility of serving the people of Bokone Bophirima in this portfolio.
I thank my colleagues in the Executive Council for advices and support.
I thank the Chairperson and entire Portfolio Committee responsible for Local Government and Human Settlements.
I thank SALGA leadership in the province for their support and cooperation
Maaparankwe a rona
The Head of Department Rre Phihadu Ephraim Motoko and staff members in the department.
I also wish to thank my family for their support
Lastly I thank God Almighty for being with us to this very day.
In Him we move, In Him we are, In Him we have our being.
Ke a leboga.
