budget speech 2014 - nwpg · budget speech 2014 ... audit opinion, on the state ... tlile go nna...

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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS

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KEYNOTE ADDRESS BY HON. MEC MOKONE COLLEN MAINE

ON OCCASION OF BUDGET VOTE ADDRESS 2014/15

FOR DEPARTMENT OF LOCAL GOVERNMENT AND HUMAN SETTLEMENTS

N.W. PROVINCIAL LEGISLATURE, MAHIKENG, 20.08.14

HON SPEAKER OF THE NORTH WEST PROVINCIAL LEGISLATURE

HON PREMIER OF THE NORTH WEST PROVINCIAL GOVERNMENT

HON MEMBERS IN THE EXECUTIVE COUNCIL

HON MEMBERS OF THE NORTH WEST PROVINCIAL LEGISLATURE

EXECUTIVE MAYORS AND MAYORS

SPEAKERS OF MUNICIPALITIES

COUNCILLORS PRESENT HERE

MAGOSI A RONA A A TLOTLEGANG

HEAD OF DEPARTMENT OF LOCAL GOVERNMENT AND HUMAN SETTLEMENTS

MUNICIPAL MANAGERS AND MUNICIPAL OFFICIALS

EXECUTIVES FROM BUSINESS FRATERNITY

MANAGERS OF PUBLIC ENTITIES

NGOs, FBOs AND OTHER SOCIAL PARTNERS

GOVERNMENT OFFICIALS

CITIZENS OF THE NORTH WEST PROVINCE

DISTINGUISHED GUESTS

Motlotlegi Mmusa-Kgotla, re neelana ka Tekanyetso-Kabo, ya ngwaga wa matlole wa, 2014/15

ya Lefapha la Dipuso Selegae le Bodudi jwa Baagi. Re dira se, morago ga tshekatsheko-sesha le

momagano ya lefapha, go arabela ponelopele ya Puso ya Bokone Bophirima, mo go atlaanyeng

ditirelo tsa tswelelopele ya dipuso selegae le bodudi jwa baagi.

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This step-in-the-right-direction, is proving to be a strategic paradigm shift from the provision of

housing, to sustainable and integrated human settlements, with transformed developmental

local governance, where an intense and increased ward-based planning approach, has been

adopted.

The logic behind this integration of services, is in response to National Outcomes 8, 9 and 12,

which commits government to deliver on sustainable human settlements and improved quality

of household life; to be a responsive, accountable, effective and efficient developmental local

government system; as well as create an efficient, effective and development-orientated public

service with an empowered, fair and inclusive citizenship.

Motlotlegi Mmusakgotla, re neelana ka Tekanyetso-kabo, re faraferwe ke dikgwetlo le

boitumelo, mo diphitlhelelong tseo re nnileng le tsona, magareng ga mananeo tswelelopele a

Puso Selegae le Bodudi jwa Baagi.

LOCAL GOVERNMENT

The Auditor General did not

give much of an impressive

audit opinion, on the state

of our municipalities, in his

2012/2013 Audit Report.

In this Auditor General’s

Report, only 4

municipalities have

received unqualified audit

opinion with matters of

emphasis. These are

Bojanala Platinum District Municipality as well as Moses Kotane, Naledi and Tlokwe Local

Municipalities. 5 municipalities have received a qualified opinion. These are Dr Ruth Segomotsi

Mompati and Dr Kenneth Kaunda District Municipalities as well as Ratlou, Rustenburg and

Madibeng Local Municipalities.

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Madam Speaker, 14 municipalities have been disclaimed for the 2012/2013 financial year.Go

tlile go nna botlhokwa thata gore Lefapha le atamelane le Dimasepala tse somelebone tse.

We are concerned, Madam Speaker, that, no clean audit opinion has been received in the

province. The Auditor General noted the reasons for this poor audit opinion on our

municipalities as;

- Non-compliance to legislation

- Poor quality of annual performance reports

- Poor quality of annual financial statements

- Poor information technology controls with no improvement

- Excessive use of consultants with no skills transfer

- Lack of consequences for poor performance and transgressions, such as Councils not taking

action

- Key positions vacant or key officials lacking appropriate competencies

- And slow response by political leadership and management, in addressing the root causes of poor

audit outcomes.

Madam Speaker, in our effort to deal with these poor audit outcomes in our municipalities, we

are inspired and driven to action by interventions package announced by the Honourable

Premier during the State of the Province Address. This package of interventions, which we will

seriously commit to, includes;

Clearing all debts owed to municipalities by the end of the next financial year

Strengthening the North West Premier’s Coordinating Council to ensure better planning alignment

between the province and municipalities

Playing a key role in the setting up of a Provincial Infrastructure Coordinating Council, chaired by

the Honourable Premier, to integrate all public sector spending on infrastructure in the Province

Implementation of the clean audit targets and the Auditor General’s recommendations being built

into the performance management contracts, of all municipal managers and other senior

management officials

A comprehensive province-wide skills audit being conducted, across all municipalities, as an

intervention, to finally deal with over-reliance on consultants by municipalities

Ensuring that all Ward Councillors in the Province, hold at least one monthly community meeting,

in their wards, to report on service delivery matters

And, ensuring that all cities, towns and villages are kept clean.

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As we seek a new way of doing things, Frantz Fanon reminds us that it will not be an easy road,

when he writes from his book, “Black Skin, White Masks” that, as I quote;

“Sometimes people hold a core belief that is very strong. When they are presented with

evidence that works against that belief, the new evidence cannot be accepted. It would create a

feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so

important to protect the core belief, they will rationalize, ignore and even deny anything that

doesn't fit in with the core belief.” Close Quote.

Having been made aware of the challenges that we will face, as we seek to turn the North West

Province into a construction site, underpinned by the Saamtrek-Saamwerk Philosophy, the late

Dr. Nelson Mandela reminds us in the 1975 Letter to Winnie Mandela, from Robben Island,

when he writes as I quote;

“Difficulties break some men, but make others. No axe is sharp enough to cut the soul of a

sinner who keeps on trying, one armed with the hope that he will rise in the end.”

Close Quote.

LOCAL GOVERNANCE PROGRAMME

Madam Speaker, the Department has

developed simplified revenue enhancement

plans and we will monitor and support

implementation, with a focus on data

cleansing, debt collection and credit control.

The identified municipalities are Mafikeng,

LekwaTeemane, Naledi, Ventersdorp, Tswaing,

Matlosana, Maquassi Hills, Kgetleng,

Madibeng, Ramotshere Moilwa, Ditsobotla and Moretele Local Municipalities. These are

municipalities identified for high levels of consumer debt, amongst other challenges.

All 19 Local Municipalities will be supported with processes of Municipal Property Rates Act, as

part of the implementation of new generation valuation rolls.

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We will further intensify support to all municipalities, for improved audit outcomes, that will go

some way in realising clean audit objectives, in compliance with MFMA Section 131.

Resuscitating the Provincial Operation Clean Audit structure will be part of this support. We will

foster the implementation of proper records and information management systems, in

municipalities, as well as strengthening Municipal Public Accounts Committees. In this regard, a

partnership has been entered into with the Department of Arts, Culture and Traditional Affairs,

on records management support. Basic records keeping and electronic document management

system, in Kagisano Molopo Local Municipality, is currently underway, spearheaded by

SizweNtsalubaGobodo, at no cost to the department or the municipality.

The department is assessing the Audit Action Plans and Performance Agreements of senior

managers, across municipalities, to establish if all issues raised by the Auditor General have

been addressed and incorporated, with view to strengthening good governance, public

participation and sound administration.

A skills audit programme is being conducted, to establish skills gaps in Municipal Managers and

senior managers’ posts, to make an assessment of whether the right people are appointed in

the appropriate positions. Action will be taken on cases where councils have appointed senior

managers in contravention with the Municipal Systems Amendment Act and regulations. Re tla

tshwanela ke go atamelana!

Enforcement of policies, by-laws and forensic investigations are to be conducted in Ngaka

Modiri Molema District Municipality as well as Matlosana, Tswaing, Maquassi Hills, Mahikeng and

Ditsobotla Local Municipalities. These forensic investigations are implemented in terms of

Section 106 of the Municipal Systems Act on allegations of fraud, maladministration and

corruption.

Madam Speaker, the department will visit every local municipality to verify if community

meetings take place on a monthly basis, as pronounced by the Honourable Premier in the State

of the Province address. A memo has been issued to municipalities to comply with this directive.

Municipal performance monitoring, reporting and evaluation will be improved through

Performance Management Systems and ICT enhancement, further responding to the challenges

raised by the Auditor General.

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The Department will strengthen and coordinate Inter Governmental Relations structures,

through integrating Local Government and Human Settlements forums to derive maximum

benefits.

Madam Speaker, for the achievement of the above to be realized, the spirit of unqualified love

and commitment to the province, will have to drive all of us to heed the call by the Honourable

Premier, for the Rebranding, Repositioning and Renewal of the North West Province. In

unpacking this concept, the Honourable Premier said, during his maiden State of the Province

Address, as I quote;

“The call to rebrand, reposition and renew our province is a thorough-going philosophical

construct that can only succeed through popular citizen engagement. It calls on the people of

this province not to act in any manner or do anything that harms the good name of our

province. It seeks to unleash our collective potential, to achieve the greatness this province

deserves, and embrace opportunities presented by the new spirit of unity, reconciliation and

healing”

Close Quote.

Municipal Performance Monitoring, Reporting, Evaluation & Support

The Department has successfully piloted the Local Government Management Improvement

Model in the (7) seven municipalities. This model and assessment tool, focuses primarily on

management practices and institutional capabilities.

The Department further developed and gazetted the Municipal Planning and Reporting Tool, to

ensure alignment of budget and IDP, through Service Delivery and Budget Implementation Plan

(SDBIP). The tool provides for uniform planning and reporting, taking into consideration the

requirements of the revised IDP Framework and MFMA Circular 63, which is the new Annual

Report Template.

The tool will be gazetted this financial year, for clear implementation date envisaged for

2016/17 financial year. The tool is envisaged to be automated and piloted in eight municipalities

during 2014/15 financial year. The eight municipalities include all the four District Municipalities

and B1 category municipalities, which are Madibeng, Rustenburg, Tlokwe and Matlosana Local

Municipalities.

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Public participation and Customer care

The Department provided various support to municipalities, towards the functionality of ward

committees, in the previous financial year. The Provincial Ward Committees Coordinating Forum

managed to continue providing necessary support and assistance to all municipalities, in order

to ensure functional and effective ward committees.

Ward committees and ward councillors’ of 18 local municipalities were work-shopped on the

development of Ward Committees’ Annual Operational Plans.

IGR structures and coordination

The MUNIMEC forum meetings will take place at least once a quarter, to allow the department

and municipalities to engage regularly on planned interventions and support programs, as well

as to assess progress made on local government programmes.

DEVELOPMENT PLANNING

Local Economic Development

Madam Speaker, we embarked on a process

to form partnership with University of

Johannesburg on LED Training. Councillors

and officials in Bojanala Platinum District

Municipality as well as Mamusa, Tswaing,

Madibeng, Rustenburg and Moses Kotane

Local Municipalities, were provided with

studies on Local Economic Development Leadership.

Madam Speaker, as at December 2013, fifteen thousand, seven hundred and three (15 703)

jobs were created across 13 local municipalities, through the Community Work Programme. This

non-state sector within EPWP, participates in different wards to support food gardens, Early

Childhood Development, school support programme, waste management and infrastructure

development.

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Disaster Management

10 sector departments were

supported to develop their Section

38, Level 2, Disaster Management

Plans. The Department

strengthened the integrated

institutional capacity for disaster

management at provincial level

and a fully functional Provincial

Disaster Management Advisory

Forum was established.

In line with the Disaster

Management Act, EXCO approved the construction of the Provincial Disaster Management

Centre, which will be utilized for facilitating and coordinating the planning for and response to

disasters.

The construction of this Center, in Mahikeng, to the amount of R15million, will be ongoing in

this financial year. This project will take the duration of 18 months.

A workshop on the development of the Fire Brigade Services White Paper and Bill was hosted.

We have also supported the Department of Agriculture, Forestry and Fisheries on the

establishment of Fire Protection Associations.

5 municipalities will be supported with fire fighting vehicles and equipment. R2.1million will be

allocated to Mamusa Local Municipality, seven hundred thousand rand (R700 000.00) to Naledi

Local Municipality and R4.2 million to Ngaka Modiri Molema District Municipality for purchasing

of fire engines.

For disaster management support, Ngaka Modiri Molema District Municiaplity will be allocated

the amount of three hundred and twenty five thousand rand (R325 000.00) and Dr Ruth

Segomotsi Mompati District Municipality, Dr Kenneth Kaunda District Municipality as well as

Bojanala Platinum District Municipality, will each receive the amount of six hundred and twenty

five thousand rand (R625 000.00).

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Municipal Infrastructure Grant

A financial-year annual average, of 300 Municipal Infrastructure Grant projects, has been

implemented throughout the province, for the past 5 years, with the MIG funding. The fund has

covered different categories of infrastructure for basic households’ services in terms of water,

sanitation, municipal roads, sports, community lighting and others. We sadly note that capacity

challenges in planning, contribute significantly to failure by some of our municipalities to spend

on their MIG allocations.

Madam Speaker, the Department will render support to five local municipalities, on the

implementation of Spatial Planning and Land Use Management Act. Chapter 6 of the Act obliges

us to provide technical capacity support and streamline institutional arrangements with

Municipal Planning Tribunal.

The Department will, in this financial year, facilitate and provide support for Local Economic

Development and job creation for 23 municipalities. Thirteen thousand, five hundred (13 500)

job opportunities will be created in 13 municipalities, through the Community Work Programme.

Support will be given to all 23 municipalities, with the development of revised Integrated

Development Plans. We will support and monitor 19 local municipalities, with the provision of

infrastructure and access to basic services. On social infrastructure development; internal roads,

community halls, cemeteries and sports facilities will be built through Municipal Infrastructure

Grant and the Provincial Infrastructure Grant will be channeled towards water, sanitation,

energy and waste management in all 19 local municipalities.

In this regard, seventy three million, one hundred and twenty thousand rand (R73 120m) has

been allocated to Ngaka Modiri Molema for Khunotshwane Water Reticulation and Dinokana

Bulk Water Supply, in Ramotshere Moiloa, as well as Upgrading and Rehabilitation of internal

roads in Mahikeng.

R22million will be provided to Dr Ruth Segomotsi Mompati for Kagisano Molopo Rural Sanitation

and Bloemhof Ext 10 Rural Sanitation, in Lekwa Teemane Local Municipality.

R16,5 million has been allocated for Makapanstad Bulk Water Supply and Madibeng Rural

Sanitation, in Bojanala Platinum District Municipality.

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A further R8million has been allocated for Boskuil feasibility study in the Dr Kenneth Kaunda

District Municipality. The total cost of these projects is one hundred and forty one million, six

hundred and twenty thousand rand (R141 620 000.00)

This work will be implemented through our new approach of strategic Ward-Based planning

mode, whose outcome orientated approach is built on seven pillars, that;

1. Good Governance is Accountable

Madam Speaker, in this regard we assert that accountability is a fundamental requirement of

good governance. A municipality has an obligation to report, explain and be answerable for the

consequences of decisions it has made on behalf of the community it represents.

2. Good Governance is Transparent

People should be able to understand the decision-making process. This means that they will be

able to clearly see how and why a decision was made and what information, advice and

consultation Council considered and which legislative requirements did Council follow.

3. Good Governance follows the Rule of Law

This means that decisions must be consistent with relevant legislation and should be within the

powers of Council.

4. Good Governance is Responsive

Madam Speaker, logic dictates, in this instance, that municipalities should always try to serve

the needs of the entire community while balancing competing interests in a timely, appropriate

and responsive manner.

5. Good Governance is Equitable and Inclusive

A community’s wellbeing, results from all its members feeling that their interests have been

considered by Council in the decision-making process. This means that all groups, particularly

the most vulnerable, should have opportunities to participate in the decision making process.

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6. Good Governance is Effective and Efficient

In this regard, municipalities should implement decisions and follow processes that make the

best use of available resources and time, to ensure the best possible results for the community.

And;

7. Good Governance is Participatory

Anyone affected by or interested in a decision, should have the opportunity to participate in the process

for making that decision.

HUMAN SETTLEMENTS

Madam Speaker, the Freedom Charter, which is the bedrock of policy formulation for our

government, commits that; There shall be Houses, Security and Comfort.

This noble goal will not be

achieved, if we are not guided

by the National Development

Plan, when it notes, within the

2030 Vision of Building a

Capable State, that; if we are

to address the twin challenges

of poverty and inequality, a

state is needed that is capable

of playing a transformative and developmental role. This requires well run and effectively

coordinated state institutions, staffed by skilled public servants, who are committed to the

public good and capable of delivering consistently high quality services, for all South Africans,

while prioritising the nation’s developmental objectives.

We are adamant that local government and human settlements are at the cold-face of this vision.

We welcome the unqualified audit opinion for the 2012/13 and 2013/14 Audit Report, for the Human

Settlements component. Comparatively, the number of exceptions raised is lesser than those in the

previous financial years, as performance has been on a steady improvement.

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Housing Delivery Challenges

Madam Speaker, we currently are beset with a huge number of blocked projects across the

province. The main reason for these blocked projects emanates from the transfer of trench

payments to municipalities. The Department is going to be resolute in dealing with blocked

projects due to shoddy work, abandoned foundation slaps where houses were supposed to be

built, failure to adhere to timeframes and other misgivings. Contractors who are found to be in

the wrong will be blacklisted.

In the next financial year, a significant portion of the budget will be utilised to unblock all the

projects by the end of the following financial year.

Informal Settlement Upgrading

Madam Speaker, we said 6 188 housing units, with access to clean water and decent sanitation

and provision of tenure to the beneficiaries must be achieved, to bring comfort to our people in

the in informal settlements, and to this end, we have built 4 538 units.

In the face of these challenges, Madam Speaker, we reassert that no axe is sharp enough to

cut our soul, for we are that sinner, who keeps on trying, armed with the hope that we will rise

in the end.

Women Empowerment

We have successfully created an opportunity for women empowerment in construction and

building industry, in the form of training, through National Home Builders Registration Council.

During 2012/13 and 2013/14 financial years, women emerging contractors were trained in

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bricklaying, plastering and laying of the foundation. The training modules also included Business

Management, Project Management, Tendering Process and Quantity Management.

We are proud that this women empowerment commitment, led the province to be honoured

with Best Women Award at Govan Mbeki Awards Ceremony, held at Sandton, on the 14th

August 2014. We congratulate Sun Success Construction Company for making us proud, with

this award, as the people of Bokone Bophirima, women in particular. This is a living proof that,

we are on the right track.

The Manifesto of the ANC for the Fifth Administration, gives clarity on sustainable human

settlements, when it commits us to ensure that all South Africans live in decent conditions, in

suitable human settlements.

In compliance to legislative obligations and mandate of the Manifesto, 30% of Human

Settlements Development Grant will be allocated to youth, women and people with disabilities.

Contractors who will receive projects from the Department will further be required to ensure

that 30% of benefits from these projects are directed at youth, women and people with

disabilities. In our continued celebration of the 1956 Women’s March to the Union Buildings,

one thousand, nine hundred and fifty six (1 956) housing units will be dedicated to women in

August.

Youth

In our commitment to building capacity in the built environment, across our municipalities,

through an inclusive programme of scholarships, training and housing consumer education; well

performing Grade 12 learners were identified, interviewed and sent to Institutions of Higher

Learning, to study in the built environment qualifications. To date, 24 students have been

capacitated and 12 are placed within the Province.

HOUSING DEVELOPMENT PROGRAMME

Madam Speaker, we have heard the cries and the plight of our communities in the form of

service delivery protests in Rooigrond, Majakaneng, Ottoshoop, Lebaleng, Bloemhof and other

areas. In Rooigrond, the contractor is already on site for township establishment, installation of

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services and the provision of 1000 housing units. In Ottoshoop, geotechnical and dolomite

stability investigations have been concluded, wherein we commit to deliver 207 housing units

during this financial year. And in Lebaleng, the sewer spillage experienced, has been attended

to.

The core beliefs that have proven to be dysfunctional, Madam Speaker, will have to give way

for tangible initiatives to thrive, as we continue, unshaken, in the journey to Reposition,

Rebrand and Renew (RRR) the North West Province.

Our contribution to the Manifesto goal, of providing one million housing opportunities for

qualifying households in urban and rural settlements over the next five years, will see the

Department availing fourteen thousand, six hundred and fifty (14 650) housing opportunities,

which include housing units and service stands, amongst others, in this financial year.

Our plan to achieve the above is as follows;

One hundred and eighty five (185) units planned for Military Veterans, will be undertaken in the

2014/2015 financial year, in partnership with the Department of Military Veterans.

Tlokwe N12 Development will be embarked upon as an integrated development that caters for

different housing needs, including social amenities. It is important to note that this is Public

Private Partnership (PPP) between the Department, Tlokwe City Council and ABSA.

As part of our contribution to addressing the historical capitalistic disregard for living conditions

of mineworkers, three thousand, four

hundred and sixty two (3 462)

housing units will be constructed

around mining towns, in this financial

year.

The department has concluded

successful partnerships with the

Lonmin, Hernic Ferro Chrome and

Anglo Platinum Mines to achieve this

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goal. The Lonmin Mine donated 50ha of serviced land for human settlements development

programmes. This is a densification project, meant to address challenges of informal

settlements within Rustenburg.

In the Sunway Village Integrated

Mixed Development, construction of

1000 units is underway and it will be

completed during this financial year.

The Marikana Extension 2 Integrated

Development project, is implemented

in partnership with LONMIN and

Rustenburg Local Municipality and it

will yield over 2000 housing units over

a period of three years. Initial phases of 292 Breaking New Ground housing units and 252

Community Residential Units are planned for this financial year and already contractors are on

site as we speak.

We will further give a priority to Matlosana, during the mid-term budget review, in line with the

directive from President Jacob Zuma, on human settlements interventions in mining towns.

Madam Speaker, there is a commitment to eradicate the backlog of title deeds in the ANC

Manifesto for the current administration. In this regard, the Department will transfer six

thousand, nine hundred and thirty two (6 932) title deeds to household owners, across the

province, in this financial year.

Six thousand, eight hundred and eighty eight (6 888) housing units will be constructed in this

financial year for Informal Settlement Upgrading. One thousand, eight hundred and eighty

seven (1 887) units will be unblocked and a further 300 Community Residential Units will be

constructed.

In response to the call to work with financial institutions, private sector organisations, co-

operatives and social partners, to increase the provision of capital for housing, 400 approvals

for Finance Linked Individual Subsidy Programme will be ensured.

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North West Housing Corporation

Given the challenges of housing and proper settlement of our people, EXCO has taken a

conscious decision to reverse the winding down of the North West Housing Corporation

(NWHC).

Following the pronouncement by the Premier, during the State of the Province Address, on the

rewinding of the NWHC, a task team has been established to conceptualize the form and status

which the corporation should take, as to whether it will be a housing agency or entity. It is

envisaged that it will be used as an alternative housing programme to expedite housing

delivery, particularly on Social Housing and Finance Linked Individual Subsidy Programme.

Fifteen million Rand (R15m) has been set aside for functionality of the North West Housing

Corporation in this maiden financial year of its up-scaling.

As part of sustaining the functionality of the North West Housing Corporation, we undertake to

recoup all the debts that are due to the Corporation.

Motlotlegi Mmusakgotla, ga go tle go itirelwa jaaka go ratwa. Ditlamo tsa kago tseo di

ngamileng ka disuga, kgatlhanong le North West Housing Corporation, di tla tshwanelwa ke

gore di atamelane le rona.

Building of New Cities

In response to the Honourable Premier’s call for the building of new cities and towns, priority

will be given to Mahikeng and Taung in the next two years. Further to the creation of new

cities, lobbying will be engaged upon to turn Rustenburg and Dr Kenneth Kaunda into Metro

Municipalities.

As part of Rebranding, Repositioning and Renewal (RRR) of the North West Province, urban and

rural housing will be given a new face lift, with regard to the new specifications for low cost

housing.

In this instance a low cost house in a rural area will have;

A minimum floor area of 45 square meters with 2 bedrooms, kitchen, living / dining area, bath

space and smooth internal floor finish. The windows will be of sizes D522 which is 2000mm

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width x 1 540mm height, D 54 which is 1 511mm width x 1 540mm height, C4 which is 1

511mm width x 949 mm height and E2 which is 1 022mm width x 654mm height.

The bricks will be of face brick with internal plaster and maxi brick with plaster & paint, for both

internal and external. There will be basic electrical installation with at least 1 light in each room,

2 lights in the combined kitchen / living area, electric plug in each bedroom and 2 Plugs in the

kitchen / living room. All internal doors will be installed and external doors will be combination

doors.

Roofing will be of chromadek roof sheet; with minimum thickness 0.5mm and ceiling will be

installed for the whole house. Further supplied and installed will be aprons and 1000L water

tanks & gutters.

The cost to this house is currently valued at one hundred and nine thousand, nine hundred and

forty seven Rand (R 109 947. 00).

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And for urban housing, the minimum floor area will be 45 square meters with 2 bedrooms,

kitchen, living / dining area, bath, hand basin, toilet and internal water recycling system with

smooth internal floor finish. The windows will also be of D522, D54, C4 and E2 in size.

The bricks will be of face brick with internal plaster, maxi brick with plaster and paint for both

internal and external and there will be basic electrical installation with at least 1 light in each

room, 2 lights in the combined kitchen / living area, electric plug in each bedroom and 2 plugs

in the kitchen / living room.

All internal doors will be installed with external doors as combination doors. Roofing will be of

chromadek roof sheet with minimum thickness 0.5mm. There will be installation of ceiling for

the whole house, aprons, gutters and conveyance.

This house is currently valued at one hundred and ten thousand, nine hundred and forty seven

Rand (R 110 947. 00)

We will work in collaboration with Mafikeng Local Municipality, to ensure that we achieve the

objectives of the Mahikeng Rebranding, Repositioning and Renewal Programme, on matters

that relate to the Department. We maintain that through this cooperation, basic things will have

to be done, to maintain the principles of good governance through sound provision of water,

sanitation and other community services.

HOUSING NEEDS RESEARCH, PLANNING AND TECHNICAL SERVICES PROGRAMME

Madam Speaker, we are going to investigate the impact of housing delivery on the lives of

beneficiaries, in order to determine how they have been affected and further assess whether

the concept of Integrated Human Settlements has been achieved by the Department. 2 major

socio-economic impact assessments will be conducted at Setlagole, Ward 14 of Ratlou Local

Municipality and at Coligny, Ward 16 of Ditsobotla Local Municipality.

As our province is dominated by farming communities, we are going to investigate farm workers

housing needs and review progress made in terms of how the realization of the right to

housing, has been extended to farm workers, by the Department.

Housing Sector Plans of 11 local municipalities in the Province will be reviewed, assessed and

analysed during this financial year. The Housing Sector Plan is a chapter which is integrated into

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the Municipal Integrated Development Plan, and gives focus to housing development in the

municipal areas in a more effective, coherent and sustainable manner. These plans provide

effective linkages between spatial development framework and project locations.

Housing Needs Register

Madam Speaker, the Housing Needs Register was set out by National Department of Human

Settlements and further re-emphasised by Minister Lindiwe Sisulu during her Budget Vote

Address. It is an initiative to do away with the current system of waiting lists, which have

proven to be ineffective and inefficient in terms of implementing projects, because mere

estimates tend to impact on the accuracy of figures on the housing needs.

Software, in this instance, has been developed and the Province is currently engaged with

municipalities in getting this process to finality. The local municipalities in Bojanala are on the

verge of utilising the system, as the district was a pilot area. We have further established and

rolled out the Housing Needs Register to Dr. Kenneth Kaunda, Ngaka Modiri Molema and Dr.

Ruth Segomotsi Mompati Districts, in this financial year.

The database will be centralised to deal with the current manipulation in the system.

Land Acquisitions

Madam Speaker, we welcome the pronouncement made by Minister Gugule Nkwinti, in an

attempt to resolve the historic elephant in the room, the land question. In response to his

pronouncement, we said we are going to purchase pockets of land in Madibeng Local

Municipality and Ditsobotla Local Municipality. To this end, 107 Ha of land was purchased at

R4,4 million for Ditsobotla, at Rietvly plot No. 70 and 39,5 Ha of land was purchased for

Madibeng, at Bokfontein, for a figure of R7,6 million. At Marikana, we purchased 207 Ha of land

at Rooikoppies, for a figure of R47,1 million.

In the current financial year, R40m has been set aside for this purpose.

Reconfigured Department

Madam Speaker, given the challenges we have faced in the past, which we have duly

elaborated upon, we maintain that the reconfiguration of developmental local government and

sustainable human settlements could not have come at a better time. Beyond streamlining of

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services, this developmental process offers a unique opportunity, to share expertise on

improving performance management systems and strategic leadership, which are necessary for

the achievement of development goals, which this new department has been assigned.

Furthermore, advantages that will be derived from the merger include centralised planning,

seamless and speedy implementation of projects, a joint and reconfigured organizational

structure, enhanced quality control and improved, coordinated and responsive service delivery.

CONCLUSION

Madam Speaker, as we embark on an exciting journey into the future, our visionary emphasis is

on Outcomes, rather than mere Outputs. The 2014/15 Annual Performance Plan of the

Department has set baseline for outcomes-measured delivery, with Greater emphasis on

location, density and integration with infrastructure and amenities.

Financial viability and good governance in municipalities, is of utmost priority. More focus will be

on supporting municipalities with issues of compliance and access to basic services. The

Department will further ensure alignment with the National Development Plan, Vision 2030. The

Medium Term Strategic Framework will be utilized to guide planning and resource allocation

across all the three spheres of government.

The Department spent One billion, three hundred and forty-two million Rand (R1, 342billion) of

conditional grant for the human settlement component in the financial year 2013/14, registering

100 percent spending of the allocated amount. In our fight against the unlawful act of sale or

lease of low cost houses, the Special Investigation Unit recovered an amount of Nine hundred

and four thousand Rand (R904 000.00) from housing beneficiaries who were found to be

committing this offense. These fines form part of the Departmental Revenue for the 2013/14

financial year.

Madam Speaker, during the State of the Nation Address on the 17th of June 2014, Honourable

President Jacob Zuma made an observation that, as I quote;

“South Africa is a much better place to live in than it was in 1994, and the lives of millions of

our people have improved. However, as the National Development Plan and the Presidency

Twenty Year Review highlight, the triple challenges of poverty, inequality and unemployment

continue to affect the lives of many people. As we enter the second phase of our transition from

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apartheid to a national democratic society, we have to embark on radical socio-economic

transformation to push back the triple challenges. Change will not come about without some

far-reaching interventions.”

Close Quote.

It is against the letter and spirit of this vision, from the state President, that the Department of

Local Government and Human Settlements, embraces the new way of doing things, to realize

the goals of rebranding, repositioning and renewal of the North West Province as underpinned

by ideals in the philosophical construct of Saamtrek-Saamwerk, as we turn the North West

province, into a progressive construction site and desirable model for municipal governance.

Madam Speaker, we must emphasis, that as part of new ways of doing things, we remain

committed as a Department to explore and implement alternative technology in near future to

some of our projects in pursuit of working towards green environment. We also want to

accelerate people housing process (PHP) as part of our national programme to encourage our

communities to build houses for themselves, no longer depending on contractors to build them

houses. The process itself will add value in encouraging self-reliance to our people.

Madam Speaker, as part of encouraging good governance and acknowledging good performing

municipalities in the province; in the next financial year, we are going to convene Annual

Awards Ceremonies in various disciplines looking into the best performing municipalities in

terms of compliance to the legislations and its cleanliness. And of course, the Annual Provincial

Govern Mbeki Awards will continue as usual acknowledging our best performing contractors.

Madam Speaker, as we approach our conclusion, we want to make a clarion call to all our big

contractors to buy material in the province where possible to boost our economic spin-offs and

work closely with emerging contractors to ensure that their CIDB grading improves to sustain

growth of their companies.

We take this opportunity to thank the Portfolio Committee for their continued support and the

Honourable Premier together with colleagues in EXCO for the inspired vision that informs our

work. We appreciate all the valuable contributions from our partners in social delivery.

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TABLING

Madam Speaker, the Department of Local Government and Human Settlements, tables before

this August House, 2014/2015 Budget Vote xx for the Department of Local Government and

Human Settlements for consideration.

LOCAL GOVERNMENT AND HUMAN SETTLEMENTS

2014/15 Departmental

Allocation Receipts

R‘000 Amounts in words

Equitable Share 503,049 Five Hundred and Three million, Forty Nine

Thousand Rand

Conditional Grant 1,519,136 One Billion, Five Hundred and Nineteen

Million, One Hundred and Thirty Six

Thousand Rand

Departmental Receipts 1,150 One Million, One Hundred and Fifty

Thousand Rand

TOTAL 2,023,335 Two Billion, Twenty Three Million,

Three Hundred and Thirty Five

Thousand Rand

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Allocation Per Programme


Administration 107,864 One Hundred and Seven Million, Eight

Hundred and Sixty Four Thousand Rand

Local Governance 48,308 Forty Eight Million, Three Hundred and

Eight Thousand Rand

Development and Planning 239,340 Two Hundred and Thirty Nine Million, Three

Hundred and Forty Thousand Rand

Housing Needs, Planning and

Research

63,235 Sixty Three Million, Two Hundred and

Thirty Five Thousand Rand

Housing Development 1,564,588 One Billion, Five Hundred and Sixty Four

Million, Five Hundred and Eighty Eight

Thousand Rand



Thousand Rand

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Allocation Per Economic

Classification


Compensation of Employees 181,455 One Hundred and Eighty One Million, Four

Hundred and Fifty Five Thousand Rand

Goods and Services 77,913 Seventy Seven Million, Nine Hundred and

Thirteen Thousand Rand

Transfer Payments 1,747,019 One Billion, Seven Hundred and Forty

Seven Million, Nineteen Thousand Rand

Machinery and Equipment 16,948 Sixteen Million, Nine Hundred and Forty

Eight Thousand Rand



Thousand Rand

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