Hansard: NCOP: Unrevised Hansard
House: National Council of Provinces
Date of Meeting: 07 May 2013
Summary
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Minutes
UNREVISED HANSARD
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Tuesday, 7 May 2013 Take: 78
TUESDAY, 7 MAY 2013
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
_______________________
The Council met at 15:07.
The Deputy Chairperson of the NCOP took the Chair and requested members to observe a moment of silence for prayers or meditation.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
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START OF DAY
AIR CONDITIONING IN CHAMBER
(Announcement)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Hon members, I wish to make the following announcement. The air conditioning has been switched off, although it is still cold in the Chamber. [Interjections.]
An HON MEMBER: No blankets?
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Well, unfortunately hon member, we are not in a nursery and we do not keep blankets. [Laughter.] Thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
NEW MEMBER
(Announcement)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Hon members, I also wish to announce that we have a new member, the hon Ms Z C Faku. [Applause.] She was sworn in this morning and I would like to take this opportunity to welcome her. We are a very close-knit family and she will feel free here. Thank you. Hon Tau?
The HOUSE CHAIRPERSON (Mr R J Tau): Deputy Chair, I thought I should remind you that in terms of the tradition and culture of the National Council of Provinces we expect a two-minute song from hon Zukisa! [Laughter.] [Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, with due respect, I think you are now jumping the gun. [Laughter.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
DEFERRAL OF ORDER NO 4 – OVERSIGHT VISIT TO GAUTENG MUNICIPALITIES FROM 21 TO 24 AUGUST 2012
(Decision of Question)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, I have been informed that it has been requested that Order No 4 on the Order Paper – Oversight Visit to Gauteng Municipalities from 21 to 24 August 2012 be deferred to a later date for consideration.
Question put: That Order No 4 be deferred for consideration.
Question agreed to in accordance with section 65 of the Constitution.
Ms M P THEMBA
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
NOTICES OF MOTION
Ms M P THEMBA: Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:
That the Council-
(1) notes with concern the allegations that the DA-led City of Cape Town is dismissing large numbers of permanent employees and replacing them with short-term Expanded Public Works Programme, EPWP, workers, to create the illusion that the city is most successful in implementing the EPWP;
(2) also notes that in doing so the city for instance dismissed 400 permanent staff members at its Solid Waste Depot in Parow and only retained 80 permanent staff members, while it in turn hired 300 EPWP workers to do the same jobs that had been done by the dismissed permanent employees;
(3) further notes that this alleged exploitative practice is apparently the trend across the city, in that the faces of the EPWP workers keep changing all the time, while attempts by the media to get comments from members of the mayoral committee have failed;
(4) calls on the DA and the City of Cape Town to stop these alleged illegal and exploitative practices; and
(5) takes this opportunity to call on the Ministers of Labour, of Public Works, and of Co-operative Governance and Traditional Affairs to investigate these allegations and, if necessary, to intervene appropriately as a matter of urgency.
Mr D A WORTH
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Ms M P THEMBA
Mr D A WORTH: Hon Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA:
That the Council-
(1) notes that something is seriously wrong at the Department of Agriculture, Forestry and Fisheries, particularly in the Free State province;
(2) further notes that millions of rands of brand-new tractors – 24 to be exact – and farming implements meant for use by emerging farmers in land requisition projects, have been discovered standing in the open, gathering dust in the town of Vrede at the disused showgrounds;
(3) also notes that the tractors were supplied under the so-called Operation Mechanisation, many of the tractors' batteries have been stolen, and the tractors have been parked at Vrede for almost one year;
(4) acknowledges that, in addition, 16 Nissan Hardbody bakkies have been discovered parked at the Glen Agricultural College, while agricultural officials and extension officers often complain that they do not have transport; and
(5) calls for an urgent investigation into this debacle.
Mr J M BEKKER
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Mr D A WORTH
Mr J M BEKKER: Hon Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA:
That the Council-
(1) notes the unrest and uproar in Oudtshoorn;
(2) also notes the attacks on the ANC leader in the Western Cape;
(3) further notes the lack of service delivery;
(4) acknowledges the great danger of holding political meetings in the buildings of the town council; and
(5) calls on the ANC to stop these internal fights to have power in the council and to attend to service delivery.
Mr M J R DE VILLIERS
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Mr J M BEKKER
Mr M J R DE VILLIERS: Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA:
That the Council-
(1) notes that the unemployment rate in South Africa has risen from 24,2% in 2012 to 25,2% in the first quarter of 2013, according to a report by Statistics South Africa;
(2) also notes that this situation is very alarming and worrisome, because this brings the total number of unemployed individuals to 4,6 million, and the total number of discouraged workseekers also increased, to 2,3 million;
(3) further notes that the highest numbers of jobs lost were 66 000 in the trade industry, 41 000 in the construction industry, and 23 000 in the financial industry;
(4) acknowledges that this is clearly an indicator that the youth wage subsidy must be implemented, because 70,7% of the unemployed are between 15 and 34 years of age;
(5) further acknowledges that we should stimulate the economic growth of South Africa with different programmes and development, because this negative trend in work employment is a ticking time bomb and people will find other ways to survive; and
(6) debates unemployment and job creation in South Africa.
Mrs E C VAN LINGEN
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Mr M J R DE VILLIERS
Mrs E C VAN LINGEN: Hon Deputy Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA:
That the Council-
(1) debates the abuse of SA Defence Force facilities by the Gupta family for a private family wedding, which was a transgression of all the security laws in South Africa;
(2) notes that Minister Jeff Radebe said a committee of director-generals would be appointed to investigate the incident;
(3) further notes that heads are rolling left, right and centre, but the person who is behind the entire saga and the international embarrassment for South Africa, is still hiding in the dark; and
(4) calls on Minister Radebe and the Cabinet to take immediate steps to reveal the real offender who took the decision, and to call that person to book, before any more so-called guilty parties are fired at random.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, before we proceed, I would like to take this opportunity to welcome back one of the sons of the NCOP, hon Matila. [Applause.]
Mr M P JACOBS
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
FAREWELL TO MR S S MAZOSIWE
(Draft Resolution)
Mr M P JACOBS: Deputy Chair, I move without notice:
That the Council-
(1) notes that the hon Mr Siphiwe Sam Mazosiwe, who was a member of the ANC and a delegate from the Eastern Cape province, has resigned as a member of the Council to pursue other personal interests;
(2) further notes that the hon Mazosiwe served this Council with profound dedication and the utmost humility as the Programming Whip of the Council, and a member of the Select Committee on Appropriations, the Select Committee on Finance, the Magistrates' Commission, the Joint Standing Committee on Intelligence, and the Ad Hoc Committee on the Protection of State Information Bill;
(3) takes this opportunity to express its profound appreciation to and honour Mr Mazosiwe for his selfless service to this august House and the people of the Eastern Cape; and
(4) resolves to appoint the hon Ms Mmatlala Grace Boroto from Mpumalanga as the Programming Whip of the Council with effect from 1 May 2013.
Motion agreed to in accordance with section 65 of the Constitution.
Mrs A N D QIKANI
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Mr M P JACOBS
WATER FILTRATION BREAKTHROUGH BY WITS UNIVERSITY RESEARCHERS
(Draft Resolution)
Mrs A N D QIKANI: Deputy Chair, I move without notice:
That the Council-
(1) notes that water scarcity is increasingly becoming a major problem in South Africa and is linked to the pollution of water resources through acid mine drainage, and the like, especially in the mining areas in Gauteng, and elsewhere, where it has become a serious problem;
(2) further notes that a major breakthrough is looming, following new technology that was recently developed by a team of researchers from the University of the Witwatersrand in Johannesburg, in collaboration with other scientists;
(3) particularly notes that this technology will make it possible to filter pure water from waste produced during mining and from other pollutants, and could make huge inroads into dealing with the serious problem of acid mine drainage;
(4) takes this opportunity to commend the University of the Witwatersrand, especially the Head of its School of Chemical and Metallurgical Engineering, and all those involved in this major global breakthrough; and
(5) calls on the government to leave no stone unturned to support the research and the development of this technology.
Motion agreed to in accordance with section 65 of the Constitution.
Mr T M H MOFOKENG
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Mrs A N D QIKANI
ARREST OF EASTERN CAPE MURDER SUSPECT AFTER EIGHT YEARS
(Draft Resolution)
Mr T M H MOFOKENG: Deputy Chair, I move without notice:
That the Council-
(1) notes that a murder suspect, a woman of the Eastern Cape who allegedly killed another woman almost eight years ago near Butterworth in the Eastern Cape by fatally stabbing her on Christmas Day in 2005, was recently arrested as a result of the sharp and efficient detective work of an "eagle-eyed investigating officer", who recognised the suspect from a photograph in the newspaper, when the suspect recently gave birth at the Philippi East Police Station in Cape Town where policewomen helped her;
(2) further notes that when the detective recognised the suspect from the photograph in the newspaper, he immediately alerted his counterparts in Cape Town, who arrested and detained her; and
(3) takes this opportunity to commend the detective for his dedication and efficiency in solving this serious crime, despite the fact that it was committed eight years ago.
Motion agreed to in accordance with section 65 of the Constitution.
Mr B A MNGUNI
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Mr T M H MOFOKENG
CONSTITUTIONAL COURT RULING ON NONPAYMENT OF MUNICIPAL BILLS
(Draft Resolution)
Mr B A MNGUNI: Deputy Chair, I move without notice:
That the Council-
(1) notes the recent ruling of the Constitutional Court when the Court, on appeal, ruled against a resident of Kroonstad in the Free State who refused to pay her municipal rates and taxes in protest against poor service delivery;
(2) further notes in particular that although the resident paid for electricity and waste removal, she refused to pay her municipal bill in full;
(3) also notes that although the Court agreed that if a service was not rendered, no money was due, it ruled that residents did not have the right to pick and choose the services they would pay for;
(4) takes this opportunity to call on all residents in South Africa to note and abide by this important ruling of the Constitutional Court, and;
(5) at the same time calls on all municipalities to improve service delivery to ensure that proper services are rendered to all residents at all times and to see to it that no fees are charged for services that are not rendered.
Motion agreed to in accordance with section 65 of the Constitution.
Mrs B L ABRAHAMS
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Mr B A MNGUNI
BRUTAL MURDER OF TRACEY-LEE MARTINS IN KLIPSPRUIT WEST
(Draft Resolution)
Mrs B L ABRAHAMS: Deputy Chair, I would like to move the following motion without notice, not only on behalf of the DA, but on behalf of the Eldorado Park and Klipspruit communities. I therefore move:
That the Council-
(1) conveys its condolences to the family of Tracey-Lee Martins, who was brutally murdered in Klipspruit West, Johannesburg;
(2) notes that Tracey-Lee was a beautiful 28-year-old mother with a three-year-old son who has unfortunately been left traumatised by witnessing his mom being gang-raped and brutally murdered;
(3) further notes that he went running to his 74-year-old great-grandmother, who was brutally assaulted in the bedroom next door, shouting, "Ouma, Ouma, come see! They are killing my mother! They cut her neck and broke her bones";
(4) prays that God will grant her family and son comfort and strength during this time of bereavement, and that her soul may rest in peace; and
(5) calls upon South Africa to help the Soweto-Eldorado Park-Klipspruit people in getting together in solidarity to fight the drug abuse that is taking place in South Africa.
Motion agreed to in accordance with section 65 of the Constitution.
Ms M G BOROTO
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Mrs B L ABRAHAMS
EMAKHAZENI BOARDING SCHOOL CONSTRUCTION PROJECT, MACHADODORP
(Draft Resolution)
Ms M G BOROTO: Deputy Chair, I move without notice:
That the Council-
(1) notes the recent announcement by the MECs for public works, roads and transport, and for education, in Mpumalanga in regard to intensifying the improvement of education in general, and especially education infrastructure, across the province;
(2) further notes that in line with this the provincial government has kicked off its commitment by making an amount of R250 million available for the construction of the new Emakhazeni Boarding School in Machadodorp, which will mainly target children from nearby farms, and be completed by April next year in partnership with the local municipality;
(3) notes that the school will consist, among other things, of a number of classrooms, an administrative block, a fully equipped library, a science laboratory, sleeping units and sport facilities; and
(4) takes this opportunity to welcome the commitment and to commend the provincial government and the department, as well as the local municipality, on this initiative.
Motion agreed to in accordance with section 65 of the Constitution.
Mr W F FABER
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Ms M G BOROTO
PLIGHT OF TEACHERS IN NORTHERN CAPE
(Draft Resolution)
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Faber [/feɪbә/]. [Interjections.] Whatever.
Mr W F FABER: Faber [/fɑːbә/], thank you. [Interjections.] Thank you, Madam Chair. [Interjections.] I move without notice: ...
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): The owner of the surname has never complained ...
Mr W F FABER: I said, "Faber [/fɑːbә/], thank you", Madam Chair.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I will, then, not take any criticism from anybody. [Interjections.]
Mr W F FABER: Madam Chair, with due respect, I said Faber [/fɑːbә/] – if you would like to pronounce it correctly. Thank you very much. [Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Foreign language.
Mr W F FABER: Yes, in South African it is called Faber [/fɑːbә/], Mr Adams. Thank you. [Interjections.] On behalf of the DA, ...
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Thank you for the correction, but please bear with me – it is a foreign language. [Interjections.]
Mr W F FABER: South African, yes. On behalf of the DA, I move without notice:
That the Council-
(1) notes that there are teachers in the Northern Cape province who have not received their salaries for the past five months;
(2) further notes that this practice has been reported previously, but it seems as if the department of education in the Northern Cape is turning a blind eye towards these teachers;
(3) also notes that even though they have not received salaries for up to five months, they still go to school to help our children get their much-needed education, and that some of these teachers are also on contract and are scared to lose their jobs if they complain;
(4) further notes that the MEC for education has no control over her department and it is clear that she also has no idea of what is happening to teachers in this province;
(5) asks if we first have to wait for unions to go on strike again before the Northern Cape MEC and the department of education wake up and address this issue; and
(6) calls on the MEC, Grizelda Cjiekella, to immediately act upon this nonpayment of salaries to teachers.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Are there any objections to this motion? [Interjections.] There are objections. In the light of the objections, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
Mr D JOSEPH
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
DISRESPECT OF NATIONAL MINISTERS FOR DA-LED WESTERN CAPE GOVERNMENT
(Draft Resolution)
Mr D JOSEPH: Hon Deputy Chair, I move without notice on behalf of the DA:
That the Council-
(1) notes that the national government, the Minister of Public Works and the Minister of Police choose to ignore the Western Cape government while they promote co-operative governance, in that the Minister of Public Works handed over keys at the opening of a new Mitchells Plain police station without informing or inviting the MEC from the Western Cape;
(2) also notes that this is a clear indication that the national government disrespects the elected DA-led government and the DA-controlled constituencies in Mitchells Plain;
(3) further notes that the MEC for community safety in the Western Cape will engage with the Minister and also the Mitchells Plain constituency about the poor relations with national government Ministers;
(4) notes that the ANC will pay the price at the ballot box in 2014; and
(5) calls on the national Ministers to respect democratically elected provincial governments.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Are there any objections to this motion? [Interjections.] There are objections. In the light of the objections, the motion may not be proceeded with. The motion without notice will now become a notice of motion. [Interjections.] Hon Nzimande, please. Please!
Mr V M MANZINI
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
PROBLEMS WITH RDP HOUSES
(Draft Resolution)
Mr V M MANZINI: Hon Deputy Chair, on behalf of the DA I move without notice:
That the Council-
(1) notes that RDP houses are built using poor quality materials for the contractors to gain huge profits for themselves;
(2) further notes that the municipalities fail to allocate RDP houses to the right beneficiaries;
(3) also notes that plenty of people occupying those houses are people who do not deserve them;
(4) further notes that millions of rands were paid for housing units that have failed to meet building standards, and hence they are demolished and millions of rands go down the drain;
(5) suggests that investigations be instituted into why the units do not meet the required building standards, despite having such a hefty price tag;
(6) further notes that the brazen waste of public money and disregard for the serious housing needs of the people must not go unpunished; and
(7) also notes that an investigation into the inflated cost price of the houses and the failure to complete the contracts to meet the requirements could be of help to the government.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Are there any objections to this motion? [Interjections.] There are objections. In the light of the objections, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
Mr A J NYAMBI
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
ANNUAL SASOL FUNDRAISING BREAKFAST
(Draft Resolution)
Mr A J NYAMBI: Deputy Chair, I move without notice:
That the Council-
(1) notes that the South African petrochemical giant, Sasol, once again raised a substantial amount, R450 000, at its annual civil society organisation breakfast in Secunda in Mpumalanga two weeks ago;
(2) further notes that this will benefit various organisations in the community, including those dealing with social welfare, education, elderly people and youth development;
(3) also notes that this annual donation generated by Sasol is granted to civil society organisations to contribute to sustaining the services rendered by these organisations to the communities in their area; and
(4) commends Sasol, and all other role-players and participants, on this initiative, and in particular on their continued commitment to serving the people and especially the most vulnerable members of the community.
Motion agreed to in accordance with section 65 of the Constitution.
Mrs R N RASMENI
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Mr A J NYAMBI
POLICE CRACKDOWN ON ILLEGAL ABORTIONS IN DURBAN
(Draft Resolution)
Mrs R N RASMENI: Thank you, Deputy Chair, for this opportunity. I move without notice:
That the Council-
(1) notes that the police in Durban, KwaZulu-Natal, have intensified operations to root out illegal or backstreet abortions following reports from time to time of foetuses that have been found in toilets, and of several bogus doctors that are performing illegal abortions in Durban;
(2) further notes that during these operations recently the police arrested two foreign nationals from Uganda, who were running an illegal abortion clinic in Durban;
(3) also notes that a number of Schedule 4 drugs, which are used to induce labour and are only available on prescription, as well as other unknown medication, medical instruments and counterfeit money, were seized from their possession;
(4) further notes that a South African woman who was assisting them with their illegal activities was also arrested;
(5) also notes that bank statements indicating that they had sums in excess of R190 000 in a bank account were found on the premises; and
(6) takes this opportunity to commend the police on their successful and efficient operations and on their continued efforts and commitment to ending these illegal activities.
Motion agreed to in accordance with section 65 of the Constitution.
Mr M H MOKGOBI
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Mrs R N RASMENI
TWO-TON DAGGA HAUL ON SOUTH AFRICA-LESOTHO BORDER
(Draft Resolution)
Mr M H MOKGOBI: Deputy Chair, I move without notice:
That the Council-
(1) notes that the police of KwaZulu-Natal recently seized two tons of dagga with an estimated value of R3,8 million in operations on the border between South Africa and Lesotho;
(2) also notes that the marijuana, a firearm and ammunition were seized and a man was arrested while he was transporting the dagga by a donkey train over the Ntonjelane Pass;
(3) further notes that during these operations the police also arrested 11 other people for being in possession of cannabis sativa; and
(4) commends the police for their success during these operations and calls on the public to keep alert and to inform the police of any illegal activities or suspicion thereof in order to make South Africa a safer place that is free of drugs.
Motion agreed to in accordance with section 65 of the Constitution.
Mr J M BEKKER
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Mr M H MOKGOBI
PROBLEMS REGARDING RECRUITS AT OUDTSHOORN ARMY TRAINING CENTRE
(Draft Resolution)
Afrikaans:
Mnr J M BEKKER: Agb Voorsitter, ek stel sonder kennisgewing namens die DA voor:
Dat die Raad-
(1) kennis neem van klagtes oor die behandeling van rekrute by die Oudtshoorn-opleidingssentrum van die Weermag en dat oor die afgelope drie jaar verskeie rekrute oorlede is as gevolg van verskeie redes;
(2) 'n kommissie van ondersoek las om die opleidingsmetodes en infrastruktuur te ondersoek; en
(3) verder kennis neem dat die lewens en omstandighede van die rekrute in ons opleidingskampe baie belangrik is.
English:
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Is there any objection to the motion? [Interjections.] Translation? [Interjections.]
An HON MEMBER: No, it is fine. [Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Translation? [Interjections.] Hon Bloem?
Mr D V BLOEM: [Inaudible.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Awu! Awu! [Laughter.]
Mr D V BLOEM: It is only about Orlando Pirates, Madam.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): No. Please sit down. [Laughter.] We have not finished with the hon Mr Bekker's motion. [Interjections.] [Laughter.] Pinky! [Interjections.]
Seeing as people are saying there is no interpretation and they did not understand, what is Plan B, hon Bekker? [Interjections.] Hon Bekker, can you please help me out with this? Can you do it in English please? [Interjections.]
Mr J M BEKKER: No, Deputy Chairperson.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Sorry?
Mr J M BEKKER: I cannot do it in English. [Interjections.]
An HON MEMBER: Let me interpret ...
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): You cannot do it in English, hon Bekker. [Interjections.]
An HON MEMBER: There is interpreting now.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Oh, it has now started. Can you repeat it then?
Afrikaans:
Mnr J M BEKKER: Agb Voorsitter, ek stel sonder kennisgewing namens die DA voor:
Dat die Raad-
(1) kennis neem van klagtes oor die behandeling van rekrute by die Oudtshoorn-opleidingssentrum van die Weermag en dat oor die afgelope drie jaar verskeie rekrute oorlede is as gevolg van verskeie redes;
(2) 'n kommissie van ondersoek las om die opleidingsmetodes en infrastruktuur te ondersoek; en
(3) die lewens en omstandighede van die rekrute in ons opleidingskampe is baie belangrik.
English:
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Are there any objections to the motion? [Interjections.]
Mr D V BLOEM: Objection to what? You don't even understand ...
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): There are objections. In the light of the objections ... [Interjections.] Order, hon Bloem! [Interjections.] Hon Bloem, no! [Interjections.] Hon Bloem, please sit down. I am still here, talking.
Mr D V BLOEM: I apologise, Mama. [Laughter.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): In the light of the objections, the motion may not be proceeded with. The motion without notice will now become a notice of motion. That brings us to the end of motions without notice.
The ACTING CHIEF WHIP OF THE COUNCIL (Mr M P Jacobs)
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The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
APPOINTMENT OF MR L P M NZIMANDE TO MAGISTRATE'S COMMISSION
(Draft Resolution)
The ACTING CHIEF WHIP OF THE COUNCIL (Mr M P Jacobs): Deputy Chairperson, I move the motion printed on the Order Paper in the name of the Chief Whip of the Council, as follows:
That the Council designate Mr Lewis Paul Musawenkosi Nzimande to the Magistrate's Commission to replace Mr Siphiwe Sam Mazosiwe.
[Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): There is no speakers' list.
Question put: That the motion be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, Kwazulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Motion agreed to in accordance with section 65 of the Constitution.
Mr T E CHAANE
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NATIONAL COUNCIL OF PROVINCES
Tuesday, 7 May 2013 Take: 80
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
DIVISION OF REVENUE BILL
(Consideration of Bill and of Report of Select Committee on Appropriations thereon)
Mr T E CHAANE: Hon Chairperson and hon members, the Select Committee on Appropriations consulted various stakeholders on the 2013 Division of Revenue Bill, including the National Treasury, the Financial and Fiscal Commission, the South African Local Government Association, and all nine provinces. The committee further scheduled public hearings for 26 March 2013 in line with section 9(5)(b) of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009.
The 2013 budget was presented at a time when economic growth was weaker than expected, which resulted in a widening of the budget deficit from 4,8%, projected in October 2012, to 5,2% in 2013-14. Other challenges included the uneven population growth in various provinces, with a dramatic increase in some provinces and municipalities, and the backlogs, which remain a challenge, particularly access to refuse removal, which is on the increase, and access to sanitation.
The 2013 Division of Revenue Bill will respond to the aforementioned challenges as follows. Government must learn to do more with existing resources by improving efficiency and reducing wastage. A new Local Government Equitable Share Formula will increase transparency and promote accountability for the use of resources. There will be a reconfiguration of the health infrastructure grants to promote flexibility in delivery. A new system for allocating provincial infrastructure grants, which will link funding to planning, will be introduced. There will be a new Municipal Water Infrastructure Grant, which will be administered by the Department of Water and Environmental Affairs and will accelerate backlog eradication. Additions are made to baselines over the Medium-Term Expenditure Framework period, worth R10,2 billion for this financial year, where national government will receive R6,3 billion, provincial government will receive R3,1 billion and local government will receive R0,8 billion.
One of the major changes in the 2013 Division of Revenue Bill is the introduction of a new Local Government Equitable Share Formula. The Local Government Equitable Share Formula underwent an extensive review process during 2012, which was conducted in three phases.
The first phase proposed revisions to the principles and objectives and these were presented to municipalities. The second phase used the revised principles and objectives to formulate a new structure for the formula. The proposed new structure for the formula was generally accepted by municipalities and endorsed by the Budget Forum in October 2012. The third phase constructed a new formula using data from the 2011 census results and incorporated proposals from municipalities where possible.
The formula is based on the principles of objectivity, fairness, dynamism, transparency, simplicity, predictability and stability. It aims to enable municipalities to provide basic services to poor households, and also aims to enable municipalities with limited own resources to afford basic administrative and governance capacity to perform core municipal functions.
The new formula comprises five components, as follows: a basic services component, which provides for the cost of free basic services to poor households; an institutional component, which subsidises basic municipal administrative costs; a community services component, which makes provision for core municipal services not included under basic services; a revenue adjustment factor, which provides funds only to municipalities with limited potential to raise their own revenue; and, lastly, a correction and stabilisation factor, which ensures that the formula's guarantee can be met and levels out changes in allocations.
The advantage of the new formula is that it is more redistributive than the old one. The old formula produced allocations per poor household that resulted in municipalities with the least ability to raise own revenue receiving the lowest allocations. The new formula structure is also more transparent, with realistic projections in respect of cost estimates for basic services, and is therefore capable of updating data.
A major challenge with the new formula, however, is to ensure that once funds reach municipalities, they are used to deliver services that benefit poor households. The new formula also brings major changes to the allocations of some individual municipalities due to the updated 2011 census data. For example, the allocations of some municipalities will decline and others will receive increased allocations. The new formula will therefore be phased in over a period of five years to allow affected municipalities to adjust their budget planning and expenditure accordingly.
The committee made the following observations and findings on its engagement with stakeholders.
One of the significant changes from the 2012 Division of Revenue Act is that the health infrastructure grants have been merged into one grant with three components.
The 2011 census revealed that while the number of households that had access to services had increased, there were still serious challenges in reducing backlogs in regard to access to refuse removal and sanitation. Moreover, an amount of R291,1 million of the 2013-14 budget has been shifted away from the Municipal Infrastructure Grant, MIG, to the new Municipal Water Infrastructure Grant.
The Devolution of Property Rate Funds Grant has been phased out and incorporated into the Provincial Equitable Share.
Budget allocations based on population shifts from the 2011 census results may have unintended consequences in provinces with a declining equitable share. The equitable share allocations of at least two municipalities are likely to decline by up to 50% according to the new figures in the Bill.
In order to keep the formula simple, the new Local Government Equitable Share Formula does not address issues such as the vastness of the area and topographic factors that might increase the cost of service delivery.
An amount of R320 million is added to the Integrated National Electrification Programme Grant in municipalities for a pilot project in regard to the Approach to Distribution Asset Management that will refurbish the key municipal electricity distribution infrastructure.
Hon Chairperson, the committee has made a number of recommendations, which are contained in the report, and we hope that such recommendations will be considered favourably by the Minister of Finance and all relevant role-players once they have been adopted by this house.
We further wish to express our concerns about the number of departments and municipalities that continue to perform poorly in expending their allocated funds.
We remain even more worried about the continued lack of consequences for officials who continue to grossly breach the provisions of the Public Finance Management Act, the Municipal Finance Management Act, and other pieces of legislation. We wish to make an appeal to the executive to take the necessary remedial action before it is too late.
We therefore table the report for the approval of the Division of Revenue Bill by this House. I so move. [Applause.]
Debate concluded.
Question put: That the Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, Kwazulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Bill accordingly agreed to in accordance with section 65 of the Constitution.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order!
Mr M J R DE VILLIERS: Chairperson, ...
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Can you just hold on?
Mr M J R DE VILLIERS: All right.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): There's another announcement that I should have made earlier, that in our midst we have the new MEC for finance in the Free State, namely hon Elzabe Rockman. [Applause.]
Mr M J R DE VILLIERS: Hon Deputy Chairperson, just for the attention of the House, the electronic system is incorrect. That is just for their attention. It shows those who voted in favour as seven.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That has been going on for some time though. That's why I depend on the Table.
Mr M J R DE VILLIERS: Yes, I know.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Thank you.
Mr M J R DE VILLIERS: You might just address it though.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I can't help it. That is why certain members actually voted manually.
Mr T E CHAANE
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
Tuesday, 7 May 2013 Take: 81
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela)
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON APPROPRIATIONS – HEARINGS ON FOURTH QUARTER EXPENDITURE ON SOCIAL SECTOR EXPANDED PUBLIC WORKS PROGRAMME INCENTIVE GRANT FOR PROVINCES, DATED 27 NOVEMBER 2012
Mr T E CHAANE: Hon Chairperson and hon members, the Select Committee on Appropriations invited the Department of Public Works, the National Treasury, and the MECs from the Eastern Cape, Free State and Western Cape provinces to make presentations on their fourth quarter spending on the grant.
The grant is aimed at subsidising non-profit-making organisations, NPOs, working in the home and community-based care sector, primarily to fund the remuneration of previously unpaid volunteers in order to maximise job creation and skills development. The grant further aims to incentivise provincial social sector departments to increase employment in the NPOs and to improve the reach and quality of NPO services. The grant framework allows for a subsidy to an NPO to be transferred via the provincial departments of health and of social development.
The Department of Public Works reported that it had transferred a total amount of R199,7 million, which is 99,7% of the total allocation of R200,4 million, and of that only R175,6 million or 87,6% had been spent. The provinces reported a number of delays or challenges that had led to the underperformance in regard to the grant.
These challenges included the following: delayed payment of volunteers due to delayed project transfers by provinces, or late finalisation of administrative processes, such as the signing of service level agreements and late submission of plans; delays in the submission of reports to the Department of Public Works through provincial treasuries remained a problem; nonaligned reports between the National Treasury and the Department of Public Works; and the fact that certain provinces were paying less than the stipulated minimum of R60 per day.
The committee further heard that provinces had accelerated expenditure during the fourth quarter, compared to the first three quarters of the 2011-12 financial year. This pointed to a lack of readiness at the beginning of the financial year in provinces and the Department of Public Works.
We share the view of the National Treasury that it is critical for the Department of Public Works to adopt a strict approach to finalising agreements and business plans within the stipulated time in order to avoid the delays experienced in the previous financial year. In terms of the Division of Revenue Act, grant transfers could only be made if the business plans and agreements had been signed. Failure to conclude this process would lead to further delays in provincial transfers and expenditure, and thus compromise service delivery.
In order for the grant to realise its main objectives and perform to its maximum, we strongly recommend the following: firstly, that all reports on the Social Sector Expanded Public Works Programme Incentive Grant from provincial departments should be signed off by heads of departments and not by programme managers.
Then, the Department of Public Works must ensure that all provincial departments managing projects funded by the Social Sector Expanded Public Works Programme Incentive Grant are complaint with the grant framework regarding the stipend to be paid, which at the moment is a minimum of R60 per day.
The Department of Public Works and the National Treasury should consider punitive measures that can be taken against heads of departments who fail to submit business plans on time, as the failure to do so impacts negatively on the communities that are reliant on the services provided by the programmes funded by this grant.
Furthermore, this grant is directly aimed at promoting job creation and delays in the programmes that target job creation projects, such as those funded through this grant, are a major concern due to the growing unemployment rate in the country.
Chairperson, we therefore table this report for consideration by this House. I thank you. [Applause.]
Debate concluded.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, Kwazulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.
Mr B L MASHILE
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
Tuesday, 7 May 2013 Take: 81
Mr T E CHAANE
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON APPROPRIATIONS – PROGRESS WITH LOCAL GOVERNMENT TURNAROUND STRATEGY, OPERATION CLEAN AUDIT BY 2014 AND ESTABLISHMENT OF MUNICIPAL INFRASTRUCTURE SUPPORT AGENCY, DATED 27 NOVEMBER 2012
Mr B L MASHILE: Thank you, Deputy Chair. The Select Committee on Appropriations invited the Department of Co-operative Governance and Traditional Affairs to give a presentation on the Local Government Turnaround Strategy, Operation Clean Audit, and the Municipal Infrastructure Support Agency, Misa.
The Department of Co-operative Governance and Traditional Affairs had been in a state of paralysis for approximately 18 months from 2011, which resulted in the original Local Government Turnaround Strategy team being disbanded at the beginning of 2011. There had then been a renewed focus and emphasis on the acceleration of the strategy. The strategy had been revived with a refined focus on 108 targeted municipalities. These had been approved by Minmec on 25 May 2012.
The strategy is being co-ordinated by a team of senior officials from three branches within the department and these branches are in the process of incorporating the strategy into their annual performance plans and mainstreaming it.
The most pertinent findings by the committee regarding the process on the strategy were that: there is no capacity within provincial departments to implement the strategy; there is a need for the Department of Co-operative Governance and Traditional Affairs and Minmec to jointly monitor implementation of the action plan; and the Department of Cooperative Governance and Traditional Affairs has no clear strategy to deal with the lack of capacity within municipalities and provincial departments.
The guiding vision of Operation Clean Audit by 2014 was that all 278 municipalities would achieve unqualified audit opinions on their annual financial statements by 2014.
The objectives were as follows: firstly, no municipality would receive adverse and disclaimer audit opinions between 2010 and 2011. This objective had not been achieved. Preliminary results concluded that there were 50 disclaimers and seven adverse audit opinions.
Secondly, 60% of all municipalities would achieve unqualified audit opinions by 2012. This had not been achieved either.
The other two objectives had been for at least 75% of municipalities to achieve unqualified audit opinions by 2013, and for 100% to achieve unqualified audit opinions by 2014.
The Department of Co-operative Governance and Traditional Affairs considered that these targets were unlikely to be achieved and supposed that at least 70% of municipalities would achieve unqualified audits opinions by 2014. In order to achieve this target, the Department of Co-operative Governance and Traditional Affairs had developed an action plan that clustered activities to be undertaken by 2014 within the context of three critical areas identified from the Auditor-General's report: leadership problems, governance problems and financial management problems.
The most pertinent findings by the committee regarding the progress of the Department of Co-operative Governance and Traditional Affairs with respect to Operation Clean Audit 2014 are as follows.
There is a need to analyse the correlation between the improved audit outcomes and a failure to submit audited financial statements in time or not at all. While clean audits improved from 0,3% in the 2008-09 financial year to 5% in the 2010-11 financial year, financially unqualified opinions remained at 41% and financially qualified opinions increased from 42% to 46%. Moreover, the incidence of failure to submit audited financial statements increased from 0,3% in 2008-09 to 3% in 2010-11. Outstanding audits increased from 0,3% in 2008-09 to 6% in 2010-11.
The Department of Co-operative Governance and Traditional Affairs is silent on the issue of noncompliance with the Municipal Finance Management Act, MFMA, which is a general cause of negative audit opinions in most municipalities.
The Department of Co-operative Governance and Traditional Affairs overemphasised the establishment of certain structures, such as the municipal public accounts committees, rather than emphasising their performance. The performance of these structures does not show any positive correlation between the establishment of such structures and improved audit opinions, and that casts doubt on the effectiveness of such structures.
Misa is part of the Local Government Turnaround Strategy aimed at introducing a turnaround mechanism in dealing with the provisioning, refurbishment and maintenance of municipal infrastructure. Misa had officially been proclaimed a government component on 11 May 2012, with the Department of Co-operative Governance and Traditional Affairs as its principal department.
Misa has five strategic focus areas which include: municipal infrastructure diagnosis; technical support; municipal capacity development; sector capacity and skills development interventions; and monitoring and evaluation.
A total of 88 municipalities had been subjected to a diagnosis to evaluate their municipal infrastructure provisioning. The key findings from the diagnostic evaluations were that: there was a need for central, effective co-ordination of support; multiyear planning was a key instrument for infrastructure delivery; Misa's programmes had to focus on the sustainability of the infrastructure and the municipality; all Misa's interventions had to incorporate the central role of skills development and capacity building; and all Misa's support programmes had to have clear deliverables and milestones, and there had to be consequences for nondelivery.
The acting CEO is appointed by Misa on a full-time basis, and supported by two senior officials seconded from the Department of Co-operative Governance and Traditional Affairs. The rest of the staff are composed of short-term transferees and employees of the Development Bank of Southern Africa, DBSA, whose contracts were to be concluded by the end of September 2012. Included among the DBSA transferees were 81 technical experts in the fields of engineering and planning.
The most pertinent finding by the committee regarding the progress on Misa was that the Department of Co-operative Governance and Traditional Affairs needed to specify the number of officials seconded to Misa and the places where they were stationed.
After what we observed the committee has noted that even the 2011‑12 audit outcomes are showing regression regarding the numbers of municipalities that performed better in the previous year. On this basis, a number of recommendations have been made to turn this trend around. Among them are that the Department of Co-operative Governance and Traditional Affairs and Minmec should develop a joint strategy to monitor the implementation of the action plan; this department should ensure that failure to submit financial statements for audit is dealt with accordingly; the department should revive the rapid response team that was established when Operation Clean Audit was introduced; and it should also provide the committee, in writing, with the number of seconded officials in Misa, as well as all the places they are located, within two months of the adoption of this report by the NCOP.
I therefore present the report for consideration. I thank you. [Applause.]
Debate concluded.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.
The Council adjourned at 16: 18.