Minister of Co-operative Governance & Traditional Affairs Budget Speech & responses by ANC and DA

Briefing

14 May 2015

Minister of Co-operative Governance & Traditional Affairs, Mr Pravin Gordhan, gave his Budget Vote Speech on 14 May 2015.

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Deputy Minister of Co-operative Governance & Traditional Affairs, Mr Andries Nel, gave his Budget Vote Speech on 14 May 2015.

Chairperson
Ministers and Deputy Ministers
Honourable Members
Ladies and gentlemen

MME RUTH MOMPATI / BACK TO BASICS
I pay tribute to Mme Ruth Segomotsi Mompati, Isithwalandwe / Seaparankoe, a freedom fighter, a leader who served with humility and commitment wherever she was called – be it to the world stage as an ambassador or as the Mayor of Naledi Local Municipality.
It is a tribute to her leadership that the Naledi Local Municipality, which she led as mayor from 2000-2010, was one of the 12 municipalities in the Bokone-Bophirima (North West) province that received unqualified, improved or consistent audit outcomes for 2013/14.
These results are achieved through strong political oversight, constant monitoring by councils, improved performance management, functioning internal audit and audit committees, as well as sound administration and leadership.
North-West was the first province in which a joint national and provincial Back to Basics team was established
COMMUNITY WORK PROGRAMME

The Community Work Programme (CWP) provides an employment safety net for the poorest of the poor. It provides a basic level of income security through work.
It helps to address poverty and unemployment while other government policies to create decent work are being implemented, especially amongst women and young people.
The CWP supplements government’s social grants programme by putting R1,4 billion rand into the pockets and onto the tables of more than 200 000 participants.
What makes the CWP different is that it is also a community programme. People in the area help to decide on the kind of work needed.
This could be looking after orphans and vulnerable children, helping sick people, assisting teachers at schools, looking after children while their parents are at work, and working with the local police to improve safety and reduce crime.
We are committed and on track to establish at least one CWP site in every local and metropolitan municipality by the end of 2016/17.

In 2013/14 there were 148 CWP sites in 140 municipalities. By the end of 2014/15, we added an additional 37 sites in 19 municipalities. There are now 185 sites in 159 municipalities covering 2302 wards.

This financial year we will establish sites in a further 30 municipalities bringing the total number of CWP sites to 220.

Over the five years of this administration the CWP will put R5,6 billion into the pockets of the poorest of the poor.

In the past financial year 43 634 CWP participants benefitted from training opportunities offered by the programme. This has helped skill participants to start their own sustainable income-generating initiatives.

A partnership with the Amajuba FET College in the KZN Province has benefitted 800 CWP participants who have been provided training in Early Childhood Development (ECD), bricklaying, home-based care and community gardening.

A partnership with the University of the North West, 75 CWP participants are currently receiving training as Grade R educators.

Another partnership facilitated through the CWP entails support from the Japan International Cooperation Agency (JICA) to the Mahikeng Municipality’s Waste Management Programme.

ESKOM DEBT OWED BY MUNICIPALITIES

CoGTA participates actively in the War Room on Energy chaired by Deputy President Cyril Ramaphosa.

We are tackling the difficult and complex issue of debt owed by municipalities to ESKOM and water boards.

We have met with the 20 top owing-municipalities, SALGA, National Treasury, ESKOM. The meeting agreed on a clear action plan for the next six months.
National Treasury will continue working with municipalities that are persistently defaulting on payments to Eskom and water boards to ensure that they implement the necessary financial recovery plans.
We will also work with ESKOM, NERSA, National Treasury, and SALGA to, amongst others:

•      Review the requirement that municipalities pay in a 15 day period rather than what is required in terms of section 65 of the Municipal Finance Management Act. This results in municipalities being charged unnecessary interest.
•      Review the penalties being imposed on municipalities for exceeding their reserve capacity.
•      Establishing an integrated tariff regulatory body that looks at the basket of municipal services holistically.
We will also take decisive action to ensure that national and provincial spheres of government settle their debts to municipalities - including consideration of withholding equitable shares. We are saying pay first, argue later.
These matters are complex and difficult but the bottom line is that owing Peter to pay Paul is simply not sustainable.

PROTECTION OF INFRASTRUCTURE

We are deeply concerned about reports of deliberate damage to local government infrastructure, especially water infrastructure, to achieve political goals or economic gain.

The loss of income, disruption of essential services, diversion of scarce resources as well as social instability caused often far outweigh the value of the material stolen.

A working group formed by the Deputy Ministers of CoGTA, Police, State Security, Justice, and Public Enterprises has recommended measures to the Presidential Infrastructure Co-ordinating Commission (PICC) to tighten legislation, strengthen co-ordination amongst law enforcement agencies and the private sector.

It is recommended that existing legislation be tightened by:

1. Amending the Criminal Law Amendment Act, 1997 to provide for minimum sentences of between 15 and 25 years in cases where: (a) the theft of non-ferrous metals has caused serious interference with or disruption of an essential service rendered for the benefit of the public, serious damage to an infrastructural facility or system, whether publically or privately owned;

2. Amending the Criminal Procedure Act to make it more difficult to obtain bail in cases involving the unlawful possession or illicit dealing in non-ferrous metals.

3. Amending the Second Hand Goods Act to further tighten the regulation of scrap metal dealers.

We need to build a civic morality that respects public infrastructure and demands its defense.

We call upon all South Africans to say: “Asifuni izinyoka. Uma izinyoka zintshontsha izinto zabantu, sizozibopha.”

INTEGRATED URBAN DEVELOPMENT AND SPATIAL TRANSFORMATION

Sadly, twenty years into democracy, South Africa’s cities continue to reflect the spatial legacy of apartheid.

The architect in chief of apartheid, Hendrik Verwoerd, must be rejoicing that some of his designs not only remain intact, but are being celebrated as triumphs of the human intellect by izimbongi of illiberalism.

The poet Gabeba Baderoon writes that:

“Geography is history. Living in Cape Town means you travel through the past all the time. Geography is learning how to step gently on the past, and walking from present into history and back with each footstep. This oscillation between temporalities makes me think of the back and forth relationship I have with Cape Town.

It contains all the things that make me angry, almost as much as my heritage, and the things that I adore. When I shop there, I get cross about the magazines in the queue leading to the tills: they almost always present a line of white faces.

Last week, I felt guilty when an American friend said that when she landed in Cape Town, she didn’t know if she was in Africa – there were so few black faces. I felt guilty because the city looked to her like those lines of magazines I get cross about displayed at checkouts.”

The draft Integrated Development Framework seeks to deal with these challenges in a rapidly urbanizing society while recognizing the inextricable links between rural and urban development.

The IUDF marks a new deal for South African cities and towns. It sets out a policy framework for guide the development of inclusive, resilient and liveable urban settlements. It is based on the goals of access, growth, governance and spatial transformation.

It is undergoing an extensive process of consultation. We expect the final draft to be complete by November 2015.

We thank the Deputy Ministers in the IUDF political oversight committee for their continued guidance and wisdom.

We also thank our partners in academia and the private sector as well as the SA Cities Network, SALGA and our international partners GIZ and the European Union Dialogue Facility.

But spatial transformation and rapid urbanization cannot wait for policies to be complete. The late Gil Scott-Heron said, “The revolution will not be televised, it will be live.” Urbanisation is very live. It will not be televised.

Therefore, even as we are finalizing the Integrated Urban Development Framework the 2015/16 budget already starts to realign public spending to support the spatial restructuring of our urban areas by:

•      Modifying the infrastructure grant system to support mixed-use, mixed-income precincts. These modifications will be coupled with performance-based allocations to reward cities that demonstrate progressive changes in their urban form, improve access to basic services, reduce barriers to social and economic opportunity, and

•      Refocusing the Neighbourhood Development Programme to support the development of economic hubs in large urban townships.

•      The Cities Support Programme in National Treasury is working with metropolitian municipalities on initiatives such as the Corridors of Freedom in Johannesburg, the Metro South East Corridor in Cape Town and the Cornubia mixed income commercial and residential development in eThekwini.

Our success or failure with spatial transformation and integrated urban development will have a decisive influence on whether we become a nation united in our diversity or simply a collection of people living together separately.

DEMARCATION

We thank the Chairperson and members of the Municipal Demarcation Board for their dedicated and conscientious work.

We are 15 years into democratic local government. We must review the configuration and institutional arrangements of municipalities to improve governance and ensure that communities are better served.

This is in line with the Back to Basics approach and the proposals made in the NDP for greater regionalization and shared services roles for district municipalities.

The Minister of CoGTA, after consulting the MECs of local government, has requested the MDB in terms of section 22 (2) of the Municipal Demarcation Act investigate reconfiguring 80 municipalities to optimize their viability.

The MDB is on track to complete the necessary investigations and consultations before the 2016 local government elections.

LOCAL GOVERNMENT ELECTIONS

Local government elections must be held within 90 days of 18 May 2016. These will be our fifth local government elections since 1994.

Cabinet has established an Inter Ministerial Task Team on Local Government Elections chaired by the Minister of CoGTA. Preparations are on track.

The Municipal Demarcation Board is expected to hand over the final ward boundaries to the IEC during November 2015. The IEC will then begin determining voting districts and engaging in voter registration.

There are likely to be some changes to ward boundaries. We encourage all voters to confirm where they must be registered to vote.

Soon political parties will start selecting candidates for the 2016 local government elections. May they remember Mme Ruth Segomotsi Mompati as they do so.

I thank you

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Budget Vote Speech by Deputy Minister Obed Bapela Co-Operative Governance and Traditional Affairs National Assembly - 14 May 2015

Honourable House Chairperson
Honourable Minister of Cogta Pravin Gordhan
Honourable Deputy Minister Cogta Andries Nel
Honourable Chairperson of the Portfolio Committee Richard Mdakane
Honourable Members of the Portfolio Committee
MECs for Cogta and Cosghtsa
Executive Mayors and Councillors
Leadership of Houses of Traditional Leaders
CLR Commission Leadership
Religious Leaders and Traditional Healers
Senior Managers of Cogta
Members of the Media
Distinguished Guests
Ladies and Gentlemen
Fellow South Africans

We present our second Budget Vote Speech on the 5th Administration at the time when we will be celebrating the 60th Anniversary of Freedom Charter as adopted on 26 June 1955.

It is important to highlight that in 2003, the democratic government brought in measures specifically meant to give effect to the provisions of Chapter 12 of the Constitution through the passing of the Traditional Leadership Governance and Framework (TLGF) Act, to give effect to what the Freedom Charter says the “people shall govern”.

The legislation outlined the roles and functions of Traditional Leaders in a democratic dispensation and on how government would interact with Traditional Leaders in building a united South Africa.

As noted from the Minister’s speech, we are committed to the finalisation of Traditional and Khoi-San Leadership Governance Framework Bill, to give effect to an important milestone in the history of our democracy which the recognition and affirmation of Khoi-San leadership, structures and communities.

You spoke we listened and without doubt we proud ourselves that we will pass this legislation, which will give hope to the Khoi and San. Also the Bill once enacted will close gaps in the current legislation and strengthen the developmental role that the institution plays in traditional communities.

On Initiation:

We are making progress towards addressing issues of fatalities resulting from initiation cultural practice. Last year, in this house we indicated that we will be finalising the policy on initiation and I am pleased to indicate that Cabinet has approved, that the Ministry can release the Policy for public comments.

Furthermore, the Ministry’s Initiation Intervention Programme that is driven by the National House of Traditional Leaders and Department of Traditional Affairs has been effective. As you may be aware, many deaths were experienced in the Eastern Cape than any other province, and through this programme we saw a reduction in initiation deaths.

In this financial year, we will embark on a similar programme, to monitor initiation schools to achieve zero deaths and fatalities. We call upon traditional leadership across South Africa to work with us in this regard. We can learn from Limpopo, with regard to best practice, by introducing Medical Male Circumcision (MMC) as one of the safest, hygienic and as one of the most promising interventions for the prevention of deaths and fatalities. Communities, parents are also called to assist in identifying
illegal schools.

Socio-Economic Development:

We further commend and recognise the good work that traditional leaders are doing to advance socio-economic development in their communities. There are those traditional leaders who use land for advancing economic development within their communities. There are various best practices across the country; and I will highlight few examples:

Royal Bafokeng:

Bafokeng nation owns 2000 square kilometres of land that is under-laden with the second largest known platinum deposit in the world. Royal Bafokeng had developed 2020 vision with the aim of enabling it to be a self-sufficient community, and to produce 15000 entrepreneurs, amongst others. Royal Bafokeng traditional council give Bafokeng children bursaries for tertiary education studies.

Empangisweni Traditional Council, under the leadership of a progressive traditional leader, Inkosi Zondo is highly engaged in agricultural produce and stock farming projects,

which has created employment for local communities, with a vegetable project employing 80 members of the traditional community, the majority of which is women and youth earning R2000 a month. The Citrus fruit project with 22 small-scale farmers employing women and youth.

I also commend the work of the Dzumeri Traditional Council, under Hosi Dzumeri in Limpopo, which has awarded 50 wheelchairs to needy men, women and children and committed to increase them to 100 in the next year.

Morena Paulus Moloi of Makholokoe community in the Free State for the building of a Computer centre, Bakery and agricultural projects.

I also give praises to Kgosi Pilane and the Bakgatla Ba Kgafela Traditional Council’s for the big development projects that they are running within their communities. These projects have created employment for youth, women and other members of these communities, I applaud them for their commitment to serve and bring change to these communities, by also buy also developing bulk service such sewer, electrification using mining proceeds to develop and improve service delivery.

We call upon other traditional leaders, to join hands with government in addressing the triple challenges of poverty, unemployment and inequalities within their communities.

Traditional leaders as custodians of land in most of our rural areas, can address these challenges by:
Making land available for utilization by the community as per the applicable legislation;
Ensuring that the said land is utilized effectively and support is obtained from the relevant government institutions;
Together with government, developing cultural tourism within their areas: in this regard, all heritage sites within communities.
Also applaud, business and others for partnering with traditional leaders and their communities to bring a better life, though it is not yet realized in areas such as Vhembe, Liphalele and Sekhukhune Platinum belts.

The Programme of Action emanating from the President’s debate with National House of Traditional Leaders will go a long way in addressing poverty and joblessness in traditional communities.
President Jacob Zuma has called on traditional leaders to organize themselves and work together to claim land that was taken from their forefathers, the President said land was a very important aspect to economic growth and that the people of South Africa are nothing without it, the importance of utilizing land after claiming it.
Social Cohesion and Moral Regeneration:

We recognise the role that the institution of traditional leadership and interfaith play in building social cohesion in the country.

We applaud all our traditional leaders for providing leadership in the past months when there were attacks on foreign nationals and ensuring that,

we recognize that through your leadership there were no incidences within traditional communities. Your commitment to work with government on this issue is commended.

Disputes and Claims:

We made major strides in restoring the dignity of our traditional leaders and ensuring that there is stability within traditional communities. To this end, 844 of 1244 traditional leadership disputes and claims from Nhlapo Commission which are handled by the current Commission on Traditional Leadership Disputes and Claims have been finalized. In this financial year, we will finalise the outstanding 400 disputes and claims, and Royal families are urged to resolve the succession disputes amicably within the family without taking each other to courts.

Back to Basics:

There are 829 Traditional Councils, with 11 Kings and National House with 7 Provincial Houses of Traditional Leaders and about 8000 headman and women.

Traditional leadership has a crucial role to play in the extension of democracy and accountability to our traditional communities, it is of critical importance for municipalities to make appropriate space for traditional leaders in matters of governance that affect them.

The Back to Basics campaign further calls for municipalities and traditional leaders to work in partnerships to address issues of development related to land use management, release of land for development and overall development of rural traditional communities.

Cultural, Traditions and Customs:

Quote “Person without the knowledge of their tradition, culture and origin is like a tree without roots” Close Quote Marcus Garvey…

I urge traditional leaders as custodians of culture to promote Ubuntu and lead the moral regeneration movement. I therefore call on traditional leaders as custodians of culture to consider the following:
The cultural functions that are held should be promoted and ensure that the young people who still identify with culture are not lost instead are taught of its importance.
Protect, Promote, of our languages to retain our national identity.
Support the Indoni as well as the South African Traditional Music Awards., as part of promotions of culture, traditions and customs and also participate in the indigenous games as organised by the Department of Sports and Recreation annually.
We must work together with government; traditional leadership and the interfaith sector will confront issues such as satanism, ritual killings, deaths in initiations schools, and lead campaigns.

COGTA Ministry is committed to strengthen its engagement with the institution; and in this regard, a forum constituted of the Ministry and Chairpersons of national and provincial houses of traditional of traditional leaders has been established.

In addition, two Task Teams constituted of traditional leadership in the NHTL and across provinces, headed by the two Deputy Ministers of COGTA have been established, with one focusing on the National Support and Socio-Economic Programmes and the other on the Transformation of the institution of traditional leadership in relation to Local Government. The two Task Teams will present their report with recommendation to the Minister in the near future.

Finally we salute King Mphendulo Sigcau... Azwelokhe…
In conclusion, COGTA Ministry is committed to restoring the dignity and integrity of the institution of traditional leadership. I would like to thank my family, my staff in the office, the COGTA family for continued support of the Political Principals.

Ngiyabonga … I thank you.
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