Hansard: NA: Unrevised hansard

House: National Assembly

Date of Meeting: 28 Feb 2012

Summary

No summary available.


Minutes

UNREVISED HANSARD

 

TUESDAY, 28 FEBRUARY 2012

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PROCEEDINGS OF THE NATIONAL ASSEMBLY

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The House met at 14:00.

 

The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.

 

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

 

NOTICES OF MOTION

 

Mrs N T NOVEMBER: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates ways to prevent illegal land invasions.

 

Mr J F SMALLE: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

 

That the House debates the impact and importance of surcharges on the funding of municipalities and of making any changes to existing practices on the future financial viability of municipalities.

 

Mr D A KGANARE: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:

 

That the House debates the resurgence of underhanded tactics that are used by some drugs manufacturers.

 

Mr S C MOTAU: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

 

That the House debates the performance of the Workmen’s Compensation Fund and recommendations to improve its performance.

 

Mr M A NHANHA: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:

 

That the House debates the threat that climate change poses to the R600 million rooibos industry and the urgency with which South Africa and the world must respond to climate change.

 

Ms Z S DUBAZANA: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates combating crime by increasing mobile police stations in rural areas.

 

Mrs C DUDLEY: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ACDP:

 

That the House debates piracy at sea and the urgent need for the passing of comprehensive legislation to effectively combat, investigate and prosecute pirates.

 

Mr P VAN DALEN: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

 

That the House debates the current state of small fishing harbours and solutions to improve their economic viability and sustainability.

 

Mrs P TSHWETE: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates the assessment of social interventions and their impact on child-headed households.

 

Nkosi S P HOLOMISA: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates measures to deal with reported acts of police criminality.

 

Dr W G JAMES: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

 

That the House debates the problems of governance and professional administration of the grant-making competence of the National Lotteries Board with a view to framing effective solutions.

 

Ms R M MOTSEPE: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates retaining and recruiting of health professionals to prevent the large exodus of health professionals to foreign countries.

 

Ms M D NXUMALO: Hon Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

 

That the House debates mechanisms to deal with the increase in teenage abortions.

 

WELCOMING OF MINISTER OF DEFENCE FROM BRAZZAVILLE, CONGO

 

The SPEAKER: Before we move to motions without notice, I would like to recognise the presence of the Minister of defence of the Congo, Brazzaville, in the Chamber. Minister, welcome. [Applause.]

 

BLACK HISTORY MONTH

 

(Draft Resolution)

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:

 

    That the House –

 

(1) notes that American citizens have recognised black history in the month of February annually since 1926, first as Negro History Week and later as Black History Month;

 

(2) further notes that the month of February was chosen because it marks the birthdays of two men who greatly influenced the black American population, Frederick Douglass and Abraham Lincoln;

 

(3) acknowledges that the month honours the importance of black achievements and contribution in the United States;

 

(4) further acknowledges that the release of Nelson Mandela and other political prisoners makes February the South African history month, worthy of annual celebration, and would assist our youth and children not to forget where they come from and the sacrifices that were made to give us the freedom that we enjoy today;

 

(5) recalls that the American Diaspora is the sixth region of the African Union;

 

(6) supports the call to extend the United Nations’ resolution declaring 2011 the International Year for People of African Descent;

 

(7) encourages all to take an active part in celebrating our South African, African and diaspora history to familiarise ourselves with the intertwining of our history with that of the African Diaspora; and

 

(8) further encourages all South Africans, both black and white, to celebrate our South African and African unity in diversity to enhance nation-building and social cohesion.

 

Agreed to.

 

SOUTH AFRICAN WOMEN’S HOCKEY TEAM QUALIFIES FOR 2012 OLYMPIC GAMES

(Draft Resolution)

 

The CHIEF WHIP OF THE OPPOSITION: Hon Speaker, I move without notice:

 

   That the House –

 

(1) notes that the South African women’s hockey team qualified on Saturday for the 2012 Olympic Games by beating India in the final of a qualifying tournament held in New Delhi;

 

(2) further notes that with this victory, South Africa will join the current Olympic champions, the Netherlands, Argentina, Australia, China, Germany, Britain, South Korea, New Zealand and the United States at the Olympic Games to be held in London; and

 

(3) congratulates the team on their performance in New Delhi and wishes them the best of luck in their preparation for the London Games.

 

Agreed to.

 

MR MOSOTHO SIMON MOEPYA APPOINTED NEW ELECTORAL OFFICER OF IEC

 

(Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:

 

  That the House –

 

(1) welcomes the announcement of the newly appointed Chief Electoral Officer, Mr Mosotho Simon Moepya, of the Electoral Commission on Tuesday, 14 February 2012;

 

(2) recalls that the position of Chief Electoral Officer became vacant when Ms Pansy Tlakula was appointed Chairperson of the Electoral Commission in November last year;

 

(3) remembers that Mr Moepya joined the EC in 1998 as Manager of Electoral Logistics and occupied the posts of Senior Manager: Electoral Logistics, Planning and Voting Station Infrastructure and Deputy Chief Electoral Officer in 2001;

 

(4) further remembers that Mr Moepya provided technical assistance to the National Electoral Commission of Tanzania and also represented the EC abroad on observer missions; and

 

(5) congratulates Mr Moepya on his new position as the EC Chief Electoral Officer and wishes him much success in his new position.

 

Agreed to.

 

MOTION OF CONDOLENCE

 

(The late Mr Amichand Rajbansi)

 

Mr R B BHOOLA: Mr Speaker, I move without notice:

 

   That the House –

 

(1) notes with sadness the passing away on 29 December 2011 of Mr Amichand Rajbansi. the leader of the Minority Front, MF, and MEC for sport and recreation in KwaZulu-Natal from 2004 to 2009;

 

(2) further notes that Mr Rajbansi, fondly known as the “Bengal Tiger”, would have turned 70 on 14 January this year and that he studied history and psychology at the Indian University College in Durban before working as a sport administrator, professional soccer referee, teacher and public relations officer in the dairy industry;

 

(3) recalls that Mr Rajbansi formed the National People’s Party, NPP, which subsequently won the majority of seats in the House of Delegates of the tricameral parliament and became the chairperson of the Ministers’ Council of that House;

(4) further recalls that after South Africa’s transition to democracy, the NPP changed to the Minority Front, MF, and continued to draw support from the Indian community, sporting representation at provincial and national levels;

 

(5) recognises that in January 2009 Mr Rajbansi received a Lifetime Achievement Award from the Indian International Friendship Society in New Delhi in recognition of his selfless service to humanity, the only African to have received this award; and

 

(6) conveys its sincerest condolences to Mr Rajbansi’s widow, Ms Shameen Rajbansi, MPL, and his family.

 

Agreed to.

 

ZAMBIA BEAT IVORY COAST IN AFRICA CUP OF NATIONS FINAL

 

(Draft Resolution)

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:

 

   That the House –

 

(1) notes that Zambia beat Ivory Coast in a nail-biting final to the Africa Cup of Nations in Gabon on February 12;

 

(2) further notes that Zambia won the match following a penalty shootout after extra time, with the final count at 8-7 on penalties; and

 

(3) congratulates the new champion team, the Chipolopolo of Zambia, who stepped out of the shadow of sadness that surrounded them and showed the world what football really means to Africa.

 

Agreed to.

 

RESOLUTION EXTENDING DEADLINE FOR REPORT BY AD HOC JOINT COMMITTEE ON REQUEST FOR RECOMMENDATION OF CANDIDATES FOR NATIONAL YOUTH DEVELOPMENT AGENCY BOARD

 

(Draft Resolution)

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move the motion in the name of the Chief Whip of the Majority Party as printed on the Order Paper:

 

   That the House —

 

(1) notes —

 

(a) its resolution of 24 November 2011 which established the Ad Hoc Joint Committee on Request for Recommendation of Candidates for Appointment to Board of National Youth Development Agency and set its deadline to report on 29 February 2012; and

 

(b) Joint Rule 138 (5)(b), which provides that an ad hoc joint committee ceases to exist when the date for completion of its task has expired; and

 

(2) resolves, subject to the concurrence of the National Council of Provinces, to extend the deadline by which the committee has to report to 30 April 2012.

 

Agreed to.

 

ESTABLISHMENT OF AD HOC COMMITTEE TO CONSIDER THE CODE OF JUDICIAL CONDUCT AND REGULATIONS ON JUDGES’ DISCLOSURE OF REGISTRABLE INTERESTS

 

(Draft Resolution)

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move the motion in the name of the Chief Whip of the Majority Party as printed on the Order Paper:

 

That the House establishes an ad hoc committee to consider the Code of Judicial Conduct and the Regulations on Judges’ Disclosure of Registrable Interests tabled on 20 October 2010 in terms of the Judicial Service Commission Act, Act 9 of 1994, the committee to —

 

(1) take into account the proceedings of the Ad Hoc Joint Committee on the Code of Judicial Conduct and Regulations on Judges’ Disclosure of Registrable Interests initially established to consider this matter;

 

(2) exercise those powers in Rule 138 that may assist it in carrying out its task;

 

(3) consist of 12 members of the National Assembly, as follows: ANC – 7, DA – 2, Cope – 1, IFP – 1, and other parties 1; and

 

(4) report by 6 June 2012.

 

Agreed to.

 

JOB CREATION

 

(Member’s Statement)

 

Mr A D WILLIAMS (ANC): Hon Speaker, even though the unemployment rate remains critical, more jobs were created in 2011 as a result of stringent interventions introduced by the ANC government.

 

Figures released two weeks ago reveal that the rate of unemployment has fallen from 25% to 23,9% as a result of new jobs that were created. What is of utmost importance is that all the new jobs were created in the formal sectors of the economy, such as mining, transport, community services and trade.

 

The work done last year indicates that if the country continues to grow reasonably, and with the ANC government’s commitment to a R300 billion infrastructure project, the economy can begin to grow at a speed that will create the much-needed jobs. Therefore the ANC calls on the private sector to join the government in pursuit of a growing economy and the creation of jobs, because working together we can do more. Thank you. [Applause.]

 

KOMMANDOKORPS TRAINING CAMP SPREADING RACIAL DIVISION AND HATRED

 

(Member’s Statement)

 

Dr W G JAMES (DA): Hon Speaker, the Kommandokorps camp in rural Mpumalanga is a training camp for hatred and racism. It should be shut down immediately.

 

Today the DA urgently contacted the Mpumalanga provincial police commissioner, Lt Gen Thulani Ntombela, requesting that he use every legal means available to him to shut down the camp, pending a full investigation into what is happening there.

 

We are waiting for a response from the SA Human Rights Commission to our request for an investigation into the camp. However, there is already evidence which would enable the police to act now. Specifically, we believe that the various videos of the camp provide sufficient evidence to suspect that there may be illegal weapons there, or that weapons are being used without licences.

 

The claim by Col Jooste that “no hate speech is ever expressed at the camp” is, quite simply, a lie. Films available on YouTube about the camp provide ample evidence of the hate and racism taught there.

 

All South Africans should find the continued existence of this camp an affront to our democracy and our Constitution. I am personally incensed by the prospect that this camp may be allowed to continue operating for one day longer. This hate camp must be stopped, and it must be stopped now. [Applause.]

 

IMPACT OF DETERIORATION OF NATURAL ENVIRONMENT ON TOURISM

 

(Member’s Statement)

 

Mr N J J KOORNHOF (Cope): Mr Speaker, a recent research report has revealed that South Africa’s natural environment has deteriorated the fastest in the world over the past 20 years. This is a major concern.

 

The major attraction for the tourism industry remains our untouched scenic beauty and wildlife. Against the recent announcements on infrastructure development for Limpopo, Mpumalanga and the Eastern Cape, we need to reach a balance between development and the fight against pollution. It is not sustainable to overemphasise the one above the other. This can lead to long-lasting and devastating results.

 

The Department of Tourism and the Department of Water and Environmental Affairs need to take serious stock and ensure that we conserve and protect what is left of our scenic beauty. We need to create a culture of compliance for all parties concerned. Agriculture and big business should lead the way in order to ensure that environmental laws are respected in South Africa. If we don’t, we shall not have an asset to sell to the international tourism market for it to visit South Africa.

 

TRANSFORMATION OF FRANSCHHOEK VALLEY

 

(Member’s Statement)

 

Ms C C SEPTEMBER (ANC): Mr Speaker, the ANC has always had as its key objective the transformation of our racially separated communities by drawing strength from the richness of our diversity and by building communities that reflect our unity in diversity.

 

We therefore welcome the Franschhoek Valley Transformation Charter, which seeks to facilitate transformation in line with the Constitution. Although the Franschhoek Valley has undergone major developments to become one of South Africa’s top tourist destinations, it is still plagued by the separateness and dividedness of its communities at many levels.

 

The charter was conceptualised and written by a group of community members who wished to make a commitment to working towards sustainable change for all people. Archbishop Desmond Tutu has agreed to be the patron of this charter and we hope that the Franschhoek residents align themselves with the ideals expressed in the charter and help to transform the Franschhoek Valley.

 

DISSATISFACTION WITH BANKING, INSURANCE AND CELLULAR COMMUNICATIONS INDUSTRIES

 

(Member’s Statement)

 

Dr M G ORIANI-AMBROSINI (IFP): Mr Speaker, how much does our government in general, and Minister Rob Davies in particular, really protect our consumers? For two years I have been requesting the chairperson of the Portfolio Committee on Trade and Industry, the hon Joan Fubbs, to place on the agenda of our committee public hearings to receive the grievances of a multitude of consumers against our banks, insurance companies and cellular communications companies.

 

It seems that these three groups of companies are above any type of accountability. The hon Fubbs and the ANC management team in that committee have, thus far, refused to hold these companies accountable.

 

I have been the victim of extortion by Vodacom, which forced me to pay outrageous data-roaming charges, which it could not even begin to explain or document. My wife has been the victim of an aggressive marketing scheme by Cell C which borders on fraud. I have experienced first-hand the incompetence of the Insurance Ombudsman, as well as the collusion between OUTsurance and First National Bank.

 

If I, as a Member of Parliament, could not find any redress from their customer services, ordinary citizens are left with no help. We have allowed banks and insurance companies to shield themselves with their own ombudsmen whom they pay and control.

 

Next week we will be launching a website called daylightrobbery.org and we invite our citizens, as well as Members of Parliament, to populate it with their own horror stories. We commit ourselves to collating these stories and personally submitting them to the hon Fubbs and the hon Davies. We hope that they may finally choose to listen to the voices of the South African people and stop protecting those who, through effective racketeering, are imposing on all of us the world’s highest costs for banking, insurance and telecommunications, with very little redress to be found in the Consumer Protection Act. Thank you.

 

IMPACT OF POVERTY ON PEOPLE LIVING WITH HIV

 

(Member’s Statement)

 

Mr N M KGANYAGO (UDM): Hon Speaker, the story that was covered in weekend newspapers about Sibongile Khumalo, a woman in KwaZulu-Natal who has had to resort to eating cow dung for survival and in order for her to be able to take her antiretroviral medication, is a very sad one. This shows the extreme levels of poverty our people have to endure under the ANC government. [Interjections.]

 

The UDM is shocked to hear that, almost two decades into democracy, there are South African citizens who struggle to get basic documents such as an ID. This makes it impossible for them to access basic services. The failure of government to deliver basic services to the citizenry continues.

 

The Department of Health always encourages South Africans, especially those who are HIV-positive, to maintain healthy lifestyles. However, government’s failure to act on the Sibongile Khumalo case makes a mockery of the fight against the HIV/Aids pandemic and poverty alleviation.

 

The UDM calls on the Departments of Home Affairs and Health to work together towards a speedy resolution of the Sibongile Khumalo case and many other shocking stories. Thank you.

 

 

SOCIAL HOUSING PROJECTS TO CREATE NONRACIAL CITIES AND TOWNS

 

(Member’s Statement)

 

Ms D E DLAKUDE (ANC): Hon Speaker, social housing projects are an integral part of the ANC government’s quest to enhance racial integration. Therefore work has been ongoing to ensure that new settlements are more nonracial and involve the creation of mixed-income communities in cities and towns across the country.

The ANC welcomes the official launch of the Southernwood Square Social Housing Project in East London on Tuesday, 14 February 2012 when the Minister of Human Settlements, Tokyo Sexwale, reaffirmed the ANC’s objective that the ultimate goal of social housing projects is to, amongst other things, create nonracial cities and towns across the country.

 

The Southernwood Square Social Housing Project includes a nine-storey building at the centre of the central business district, CBD, consisting of 249 units, and is close to all socioeconomic amenities.

 

There are 57 bachelor flats, 78 one-bedroomed flats and 114 two-bedroomed flats. The project caters for households earning between R2 500 and R7 500 per month.

 

Social housing projects are fundamental in catering for people from all walks of life and a good opportunity to achieve greater racial integration, as well as dealing with the ever-growing number of people flocking to the urban areas to look for jobs and study opportunities.

 

This project is in line with the ANC’s vision of building united and nonracial communities, locating them closer to work and other economic opportunities than has generally been done in the past. Thank you. [Applause.]

KOMMANDOKORPS TRAINING CAMP PERPETUATING RACIST TENDENCIES

 

(Member’s Statement)

 

Mr I S MFUNDISI (UCDP): Hon Speaker, the UCDP is taken aback that, 18 years after the dawn of democracy, there are still Doubting Thomases who feel that the arm of friendship and brotherhood extended in the new democratic order is not enough.

 

It boggles the mind that in these days some camp was put up in Carolina in Mpumalanga with the sole purpose of indoctrinating white youths to hate black people, who are referred to as “the enemy” in that training. That a camp can be put up to train youth to perpetuate gross, inhumane and sadistic racist tendencies is the last thing the new South Africa would hope for. One wonders whose land it is they are using for these atrocities.

 

We also have to call into question the motives of parents who send their children to attend the Kommandokorps training. The UCDP contends that this is unacceptable and we call on all leaders across the colour, political and cultural divide to condemn this unbecoming trend. Racial intolerance should be given a wide berth by all who live in South Africa.

 

The UCDP calls on the SA Human Rights Commission and other related institutions to go deeper into examining this camp and other similar ones that may exist. This country calls on all of us to live side by side as people who love, respect and tolerate one another. I thank you.

 

PROBLEMS WITH CENTRAL FIREARMS REGISTRY TAKING OVER SECURING OF FIREARMS USED FOR VESSEL PROTECTION

 

(Member’s Statement)

 

Ms D KOHLER-BARNARD (DA): Hon Speaker, firearms tossed overboard outside Durban and Richards Bay Harbours or smashed in order for ships and boats to be allowed into our ports are two of the unintended consequences of a recent directive from the virtually defunct Central Firearms Registry, CFR, in Pretoria.

 

Last month the CFR took over the power of the local Port Authority Police to secure firearms used for vessel protection on incoming ships, and now we have a major issue. Applications for permits must be made to the CFR offices in Pretoria and, of course, they are in total disarray.

 

Desperate captains are having firearms dumped overboard rather than having to anchor outside the harbours at a cost of US$30 000 a day. One captain even smashed the firearms and presented the empty box.

 

This system is due to be implemented in Cape Town Harbour this week. The consequences of this truly ridiculous decision means that South Africa is now sending vessels from our ports into Somali pirate territory totally unarmed.

 

Ship owners will only pay once to replace these firearms that they are forced to abandon. In future, they will simply reroute their vessels to the many other ports available to them.

 

This directive to give more work to the CFR, which is unable to renew a simple licence in under two to five years, has placed the commercial viability of our ports and the jobs of the people who work there in jeopardy.

 

Police Minister Nathi Mthethwa has much to answer for, as there is no legislation backing up this bizarre move on the part of his Ministry. [Applause.]

 

WOMEN IN SELF-HELP BUSINESS INITIATIVES IN LIMPOPO

 

(Member’s Statement)

 

Ms A F MUTHAMBI (ANC): Hon Speaker, as part of the ANC’s vision of bringing dignity to rural dwellers by empowering rural communities to end hunger by using the available resources and redistributed land productively, a group of 10 rural people who are part of a co-operative called “Navelani Ndzhavuko” [Our tradition, Our pride], in Msiphani village near Tzaneen, will supply the organisers of the Marula Festival – to be held in Limpopo at Phalaborwa on 9 and 10 March this year – with hundreds of litres of marula beer.

 

They plan to make 3 000 litres of marula beer by the end of the brewing season.

 

The co-operative has begun to see profits. They recently supplied the department of sports, arts and culture with 200 litres for the Ku Luma Vukanyi [Tasting of the fruit] ceremony held at Ga-Shongoane Village near Lephalale. One of the co-operative members explained how she was able to sell some of the beer at home and next to a busy road to make enough money to buy food and school uniforms for her four children.

 

The ANC welcomes this kind of initiative and is heartened by the support of the department of economic development, environment and tourism, as well as the department of sports, arts and culture. We believe that this initiative will benefit the brand Marula Festival, stakeholders and the people of Limpopo as a whole. As this is the UN Year of Co-operatives, they should be encouraged, popularised and supported. Thank you. [Applause.]

 

TAXI DRIVER JACOB HUMPHREYS SENTENCED TO 20 YEARS IN PRISON

 

(Member’s Statement)

 

Prof C T MSIMANG (IFP): Hon Speaker, the IFP welcomes the sentence handed down in the Western Cape High Court this morning which saw taxi driver Jacob Humphreys sentenced to an effective 20 years in prison.

 

This judgment will send a clear message to all purveyors of public transportation that any kind of disregard for the safety of their passengers or the traffic laws of this country will be punished with the full might of the law.

 

In this case, 10 children lost their lives due to the thoroughly reckless and negligent actions of Mr Humphreys. While the sentence cannot replace those beautiful children, it can and does send a clear signal of intent by the judiciary that such actions have no place and will not be tolerated in South Africa. I thank you. [Applause.]

 

THREE WORKERS KILLED DURING VIOLENT STRIKE AT IMPALA PLATINUM MINE

 

(Member’s Statement)

 

Mr D A KGANARE (Cope): Mr Speaker, for the past few weeks, we have observed violence and lawlessness at the Impala Platinum Mine, Implats, in Rustenburg. While Cope supports the right of workers to strike, we also believe that the rights of those who do not want to strike should be respected.

Although the experience of having violent strikes without any consequences has become the norm, Cope believes that the loss of life should never be regarded as a norm. Cope urges the SA Police Service to ensure that the murderers of the three mineworkers are brought to book. Their arrest should result in a successful prosecution.

 

Mr Speaker, the issue of who is to blame for the illegal strike should not cloud our judgement when condemning the violence, intimidation and lawlessness that accompanied the strike.

 

Our labour laws are meant to ensure that labour disputes are resolved within an atmosphere of civility and peace. Those who undermine these laws should be dealt with harshly. The leadership of these hooligans masquerading as worker leaders should be identified and prosecuted.

 

It is only in South Africa that people can appear on television and threaten people with death without there being any consequences. It is not clear whether the police allow this because they think that it is a normal, democratic practice, or because those hooligans are their comrades.

 

Whilst Cope condemns the actions of some striking mineworkers, the behaviour of management - implementing retrenchment by stealth – should also be condemned. If the mine wants to re-employ, it can’t use this opportunity to retrench approximately 2 000 workers without following procedure.

 

In this regard, the mine owners should be urged to play fair. The only way in which there can be a resolution of this impasse is if the two parties each play their part in good faith. Thank you.

 

BOTSWANA DEMOCRATIC PARTY CELEBRATING 50TH ANNIVERSARY AND 45 YEARS IN GOVERNMENT

 

(Member’s Statement)

 

Ms K R MAGAU: Mr Speaker, the ANC extends its congratulations to the Botswana Democratic Party, BDP, which celebrated its 50th anniversary on 25 February 2012. The celebration also marked the Botswana Democratic Party’s 45 years in power since Botswana’s gaining its independence from Britain.

 

Botswana is praised for being the world’s biggest diamond producer and a model for African democracy and good resource management. The Botswana Democratic Party must be commended for the country’s infrastructure growth and for making Botswana a middle-income country through the proper management of their resources.

The ANC has enjoyed good relations with the government and the people of Botswana, which have been forged over the many years of our liberation struggle. We remember Botswana for joining in the international condemnation of apartheid and for its willingness to provide a safe haven for the ANC military wing during our struggle for freedom.

 

We continue to strengthen these relations in pursuit of our common goal of reconstruction and development of our respective countries. I thank you. [Applause.]

 

DYSFUNCTIONAL SMALL FISHING HARBOURS ATTRACT CRIME

 

(Member’s Statement)

 

Mr P VAN DALEN: Mr Speaker, most small fishing harbours are completely dysfunctional. These undermanaged harbours are also hotspots for crime. Poachers use them for their lucrative criminal activities.

 

Harbour buildings leased by the department are in complete disrepair. Tenants are withholding rent, lease contracts are either nonexistent or not being renewed and tenants regularly fall victim to crime.

 

The department is failing to upgrade infrastructure and to manage and secure a safe environment for enterprises to conduct their business there. At the Hout Bay Harbour there are seven sunken vessels blocking access to the repair dock. These sunken vessels have been blocking access to the repair docks for years and the department has done nothing to clear the harbour.

 

When does the Ministry intend to implement the recommendations of the transitional harbour management project, which was undertaken in May 2008, commissioned by a predecessor at a cost of R10 million to the taxpayers?

 

The study examined the best way forward in managing fishing harbours to unlock their economic value and ensure sustainability. The full economical potential of fishing harbours can only be unlocked once basic management functions are corrected through improved governance and holding management bodies accountable.

 

Fully functional fishing harbours can create thousands of jobs, alleviating impoverished communities. It is time the department takes its mandate seriously. Thank you, Mr Speaker. [Applause.]

 

INCREASE OF 2,4% IN 2011 MATRIC PASS RATE

 

(Member’s Statement)

 

Mr Z S MAKHUBELE: Hon Speaker, the ANC welcomes the 2,4%  improvement in the matric pass rate for 2011. Such a significant improvement in the pass rate represents an important step in the right direction.

 

The increase in the matric pass rate in the last few years from 60,6% in 2009 to 67,8% in 2010, and now 70,2% in 2011, is important as it demonstrates that our government’s approach to education is bearing the desired fruit.

 

This bears testimony to the fact that the President’s meeting with about 1 500 school principals soon after he took office in 2009 to understand the challenges they face in their work was not in vain. We congratulate the Department of Basic Education, its Ministry, the administrators, school governing bodies, teachers, parents and the class of 2011 for a focused, rewarding effort.

 

In the same breath, we congratulate Mbilwi Secondary School in the Vhembe District for being the top school in Limpopo province. We also congratulate the principal of Thengwe High School for recently receiving the Kadar Asmal Award. I thank you. [Applause.]

 

DISSATISFACTION WITH BANKING, INSURANCE AND CELLULAR COMMUNICATIONS INDUSTRIES

JOB CREATION

 

(Minister’s Response)

 

The MINISTER OF TRADE AND INDUSTRY: Hon Speaker, first of all I’d like to respond to the question or statement made by the hon Oriani-Ambrosini.

 

Parliament, some years ago, in its wisdom or its stupidity, but I think in its wisdom, decided that, rather than to try to deal with consumer matters in portfolio committee meetings, it would pass a National Consumer Act and establish a National Consumer Commission. Now, that National Consumer Commission did report to Parliament at the end of January. I don’t know whether the hon member was there or not.

 

However, amongst other things, the National Consumer Commission reported that it was undertaking extensive work on the cellular phone industry and, amongst other things, was dealing with the question of roaming charges. Therefore I think that the matter of the cellular phone industry has, in fact, been dealt with.

 

Furthermore, the Commissioner of the National Consumer Commission has indicated a desire to deal with bank charges, although that matter is now being complicated by the fact that there are already consumer protection bodies dealing with the financial sector and insurance industry.

 

I think that is more likely the way to go, rather than to hold portfolio committee meetings to hear grievances of this sort.

Secondly, in response to the hon Williams, I think it is important to take note of the fact that the growth rate in the South African economy increased considerably in the fourth quarter of last year compared to the third quarter. In fact, it increased to 3,2% in the fourth quarter compared to 1,7% in the third quarter.

 

Among the sectors that were responsible for that growth, after wholesale retail, trade and accommodation, was the manufacturing sector. Manufacturing is important because it is actually one of the largest job multipliers in the economy.

 

However, I think the hon member was making an important point when he said that, while there is some improvement recorded, we are in turbulent economic times and we need to take steps to ensure that our economy is on a sustainable, new growth path that is capable of providing jobs.

 

In fact, we know that times are tough. However, we believe that some of the measures that were announced by the Minister of Finance in the Budget Speech - for example, the R5,8 billion to be disbursed in the manufacturing competitiveness and enhancement programme, and the money that is also available to support the industrial development zones, will contribute to supporting job creation. Thank you very much. [Applause.]

SOCIAL HOUSING PROJECTS TO CREATE NONRACIAL CITIES AND TOWNS

(Minister’s Response)

 

The MINISTER OF HUMAN SETTLEMENTS: Hon Speaker, I extend a word of appreciation to the hon Doris Dlakude for appreciating the Southernwood project that was launched in Buffalo City recently.

 

Let me state that this particular project confirms the ANC’s strategy in terms of housing policy on densification, which saves us from using a lot of land. Secondly, and this will impress Deputy Minister Cronin who always fights us on this question, the project confirms the deracialisation of residential space.

 

What we are doing, therefore, is to combine in that project the efforts of a number of entities: the Social Housing Regulatory Authority, SHRA; the National Housing Finance Corporation, which was mentioned by the President here; as well as the province and Buffalo City. We want to congratulate all those parties and, most importantly, the private sector which was involved in that project.

 

Let me say before the House, hon Speaker, that we have quite a number of these projects in the pipeline. We will be announcing them from time to time. I will make further comments in respect of social housing in the Budget Vote of Human Settlements. I thank you. [Applause.]

 

INCREASE OF 2,4% IN 2011 MATRIC PASS RATE

(Minister’s Response)

 

The MINISTER OF BASIC EDUCATION: Hon Speaker, let me thank the ANC member who congratulated us on the results. Indeed, these results are very encouraging and I agree that the support from the Presidency and Cabinet has been highly valuable. We are also the first to admit, as a sector, that there are still many challenges that we have to confront and believe that the sector can do even better than this.

 

Again, we agree with the speaker that Limpopo did very well. Not only did they secure the Kader Asmal Award, but also the lifetime award. This was due to a principal who turned his school around. The principal also received a donation in the form of a car from a company for going beyond the call of teaching. He introduced information technology in his school for both administration and curriculum delivery.

 

In addition, he even taught most teachers around his district and ensured that more than 200 schools were trained in IT use and also in IT teaching. We are also encouraged by the initiatives that our teachers are taking to turn the system around. Thank you very much, member.

 

IMPACT OF POVERTY ON PEOPLE LIVING WITH HIV

(Minister’s Response)

 

The DEPUTY MINISTER OF SOCIAL DEVELOPMENT: Mr Speaker, firstly, in response to hon Kganyago, let me correct the following issue. The Sibongile issue did not happen in KwaZulu-Natal. If my memory serves me correctly, this happened in Swaziland. [Applause.]

 

Ke taba ye e diragetšego Swaziland, mohl Kganyago. [It happened in Swaziland, hon Kganyago.]

 

Secondly, Social Development has a programme called “Food for All”, which we run.

 

Lapho sithi khona wonke umuntu ufanele alale adlile. Sikhuthaza nokuthi abantu balime umhlaba abanawo noma umncane kangakanani. Sikwenza lokhu sibambisene Nezolimo noMnyango Wezokuthuthukiswa Kwezindawo Zasemakhaya. [Through this programme we are saying that no one must go to bed on an empty stomach. We also encourage people to plough the land they have, no matter how small it is. We do this in partnership with the Department of Rural Development and Land Reform.]

 

Thirdly, we have a social grant system in South Africa. Our older persons, our children, as well as our disabled people receive their grants every month.

Ga go na ka mokgwa wo batho ba ka jago boloko mo Afrika-Borwa gobane batho ba amogela tšhelete ya bona kgwedi le kgwedi gore ba reke dijo gomme ba lale ba jele. Ke a leboga. [Legofsi.] [There is no way people can eat dung in South Africa because people receive their grants every month to buy food so that they do not starve. Thank you. [Applause.]]

 

TAXI DRIVER JACOB HUMPHREYS SENTENCED TO 20 YEARS IN PRISON

 

(Minister’s Response)

 

The MINISTER OF TRANSPORT: Mr Speaker, thank you for the concern that was raised by the member on the sentencing of Mr Jacob Humphreys. As the department, we have already issued a statement expressing our appreciation for the conviction and handing down of a sentence to Mr Humphreys, who had murdered these children.

 

We appreciate that the courts are now taking the matter of road safety seriously and that they no longer charge people and convict them of culpable homicide, but rather of murder and attempted murder. We appreciate that and we hope it serves as a warning to all those who drive recklessly and without regard for human life. Thank you very much. [Applause.]

 

IMPACT OF DETERIORATION OF NATURAL ENVIRONMENT ON TOURISM

 

(Minister’s Response)

 

The DEPUTY MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS: The hon member was saying that there are reports about South Africa that state that we have destroyed our environment. When people dream and put their dreams on paper, you just listen to them. That is not true. South Africa does have laws. We have the National Environmental Management Act of 1998, the National Environmental Management: Air Quality Act of 2004, and all the other support systems that I cannot mention over others.

 

In South Africa, through our environmental laws, we balance the conservation of the economy with development. We need to grow our economy and that is why we have environmental impact assessment regulations and other laws, so that we are able to manage our environment as we grow our economy.

 

We look after our environment and that is the reason you see millions of people descending on South Africa. You can check our tourism statistics and you will see that. If we had destroyed our environment, then the people would not still be coming.

 

They have destroyed their environment, their air is polluted and there is nothing there, hence they are deciding to come to us. So please, we don’t follow rumours that are put on paper. Our environment is well taken care of, although we do struggle sometimes. We are very strict on that. Thank you very much.

 

IMPLEMENTATION OF THE GENEVA CONVENTIONS BILL

 

(Second Reading debate)

 

There was no debate.

 

Bill read a second time.

 

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE - INTERNATIONAL RELATIONS AND CO-OPERATION ON OUTREACH PROGRAMME UNDERTAKEN ON 5 AUGUST 2010 AT UNIVERSITY OF CAPE TOWN

 

Ms K R MAGAU: Thank you, Speaker. I am Ms Magau, the Whip. The Chairperson is held up somewhere. In his state of the nation address of 2010, President Jacob Zuma gave the directive that the Fourth Parliament should be an activist Parliament.

 

The committee on international relations, responding to this, held outreach programmes at a number of universities, including the University of Cape Town.

 

The intention or the objective of the outreach programmes was to demystify the myth that South African foreign policy is elitist. This gave an opportunity to the committee on international relations to interact with the students, the media and the South African public.

 

The result of this engagement was expected to also have the committee assess the performance of the Department of International Relations and Co-operation with regard to linking foreign policy to national priorities.

 

The committee has a number of resolutions or recommendations for the House to note and to adopt, specifically the following: The committee emphasised the need for the Department of International Relations and Co-operation to intensify its public diplomacy efforts; to request Parliament to strengthen parliamentary diplomacy; and to request Members of Parliament, as they do their work elsewhere, to make sure that they are briefed on the necessary positions of our foreign relations from time to time. Thank you. [Applause.]

 

There was no debate.

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move:

 

That the Report be adopted.

 

Motion agreed to.

Report accordingly adopted.

 

CONSIDERATION OF REPORT OF COMMITTEE ON AUDITOR-GENERAL - ANNUAL REPORT OF AUDITOR-GENERAL FOR 2010-11 FINANCIAL YEAR

 

Adv T M MASUTHA: Good afternoon, hon Speaker and colleagues. I am here on behalf of the Standing Committee on the Auditor-General to introduce my committee’s report on the annual report of the Auditor-General for the financial period 2010-11.

 

I just want to start by once again congratulating our supreme audit institution in South Africa, which is one of over a hundred institutions that belong to an international organisation called the International Organisation of Supreme Audit Institutions, Intosai, for the sterling work that they have done.

 

They have passed the test with flying colours by firstly ensuring that they themselves continue to produce clean audit reports, and therefore lead by example. It would be a sad day if the Auditor-General in this country could not itself produce a clean report when it is charged with the responsibility to monitor others - the over 800 auditees that they audit - to ensure that they comply with the audit standards set in this country.

 

Let me just indicate, as colleagues are aware, that as a committee we have a responsibility to exercise oversight over the institution. This we do by ensuring that we receive their annual report; and scrutinise it. We also receive and examine the audited financial statements and reports of the Auditor-General, which are produced by independent auditors.

 

In fact, the independent board of auditors also monitors the Auditor-General in its discretion to ensure that the standards that are upheld by the Auditor-General are compliant with the general auditing standards that are applicable both nationally and internationally.

 

So we are really proud of the kind of performance that they have been able to achieve over the years, including the award that they received for excellence from Intosai in 2010, when they hosted the 20th Congress of the International Organisation of Supreme Audit Institutions in Sandton in Johannesburg. We are really pleased with all their achievements.

 

We are also pleased with the contribution that they continue to make in other areas, which are indirect benefits that they have been able to give to this country.  One of the areas relates to the production of auditors for South Africa. They remain the largest single entity that produces auditors and chartered accountants in this country.

 

In this regard, we are also pleased that they have been able to achieve black economic empowerment, BEE, targets. They also ensure that there is transformation within the institution, and currently the majority of trainees are young black women who are enlisted under their auditor training scheme. We are also pleased with the improvement in the completion rate that they have been able to achieve.

 

The result is that people who start the training programme end up – at least over 30%, approximately 36%-38% of those students or trainees - with full qualifications as auditors and chartered accountants, compared to the general average which is between 5% and 8%.

 

The only thing as a committee that we would want to emphasise in our recommendations is that auditees should pay their audit fees timeously, especially municipalities. We understand that there are certain municipalities which are small and do not have enough capacity to generate their own revenue.

 

Thus we urge institutions such as Treasury, and others who work with local government, to ensure that such municipalities are assisted, so that they are not disqualified purely because of their inability to generate sufficient resources to meet their obligations.

 

On that note, I would like to move on behalf of the committee that our report be adopted. Thank you. [Applause.]

 

There was no debate.

    

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move:

 

That the Report be adopted.

 

Motion agreed to.

 

Report accordingly adopted.

 

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE - POLICE ON ANNUAL REPORT OF CIVILIAN SECRETARIAT FOR POLICE FOR 2010-11

 

There was no debate.

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move:

 

   That the Report be adopted.

 

Motion agreed to.

 

Report accordingly adopted.

 

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING - ANNUAL REPORT 2010-11 OF NATIONAL SKILLS AUTHORITY AND NATIONAL SKILLS FUND

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING - ANNUAL REPORT 2010-11 OF SOUTH AFRICAN QUALIFICATIONS AUTHORITY AND COUNCIL ON HIGHER EDUCATION

 

There was no debate.

 

The CHIEF WHIP OF THE MAJORITY PARTY: Mr Speaker, I move:

 

   That the Reports be noted.

 

Motion agreed to.

 

Report on Annual Report 2010-11 Of National Skills Authority and National Skills Fund accordingly noted.

 

Report on Annual Report 2010-11 of South African Qualifications Authority and Council on Higher Education accordingly noted.

 

CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON MINERAL RESOURCES - PERFORMANCE OF DEPARTMENT OF MINERAL RESOURCES FOR 2010-11 FINANCIAL YEAR

 

Mr M F GONA: Hon Speaker and hon members, the Portfolio Committee on Mineral Resources has considered the 2010-11 financial performance of the Department of Mineral Resources and assessed the implementation of its strategic priorities and measurable objectives.

 

We note that the split of the former Department of Minerals and Energy into two stand-alone entities has meant that the new Department of Mineral Resources is now able to focus squarely on mining and the minerals industry.

 

Parliament appropriated R1,030 billion during the 2010-11 financial year from the fiscus. The department, in turn, allocated these funds to its four main programmes. Programme 1: Administration received R239 million. Programme 2: Promotion of mine, health and safety received R145,1 million. Programme 3: Mineral regulation received R215,9 million, and Programme 4: Mineral policy and promotion received R429,2 million.

 

The Portfolio Committee on Mineral Resources is satisfied with the manner in which the department has disbursed these available funds. We have noted the overall underexpenditure of R1,2 million which represents 1,2% of the total budget allocated to the Department of Mineral Resources.

 

The department received a qualified audit opinion for the 2010-11 financial year, the second in succession. The basis for this qualification includes the lack of compliance with section 38 of the Public Finance Management Act in that the receivables of the departmental revenue amounting to R72,2 million were misstated.

 

There is an irregular expenditure of R7,2 million which is awaiting condonation through the approved process within the department.

 

We therefore recommend that the department should, among other measures, firstly strive for an unqualified audit opinion in the 2011-12 financial year. Secondly, it should implement its action plan aimed at addressing the concerns raised by the Auditor-General. Thirdly, it should quantify government liability with regard to the rehabilitation of derelict and ownerless mines. Lastly, it should fast-track the establishment of the compliance unit as contained in its strategic plan.

 

Hon Speaker, we therefore table this report for the consideration of the House. Thank you. [Applause.]

 

There was no debate.

 

The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move:

 

   That the Report be adopted.

 

Motion agreed to.

 

Report accordingly adopted.

 

The House adjourned at 15:02.

__________

 

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

 

THURSDAY, 23 FEBRUARY 2012

 

ANNOUNCEMENTS

 

National Assembly

 

The Speaker

 

1. Appointment of board members of MDDA

 

A letter dated 19 January 2012 has been received from the Minister of in the Presidency: Performance Monitoring and Evaluation as well as Administration, informing members of the Assembly that in terms of section 4(1)(b) of the Media Development and Diversity Agency Act, 2002 (No 14 of 2002), Mr P Nonqane and Ms R A Smith have been appointed for a period of three years, with effect from 14 January 2012, as board members of the Media Development and Diversity Agency (MDDA).

 

Referred to the Portfolio Committee on Communications.

TABLINGS

 

National Assembly and National Council of Provinces

 

1.         The Minister of Agriculture, Forestry and Fisheries

 

(a)        Strategic Plan of the Department of Agriculture, Forestry and Fisheries for 2012/13 – 2016/17.

 

2.         The Minister of Justice and Constitutional Development

 

(a)        Report of the South African Law Reform Commission for 2010-2011 [RP 276-2011].

 

3.         The Minister of Police

 

(a)        Government Notice No R. 98,  published in Government Gazette No  35018, dated 10 February 2012: Regulations: Operation of the Independent Police Investigative Directorate, in terms of the Independent Police Investigative Directorate Act, 2011 (Act No 1 of 2011).

 

4.         The Minister of Trade and Industry

 

(a)        General Notice No R. 67, published in Government Gazette No 34983, dated 3 February 2012: Amendment of the Regulations of the Act.

 

(b)        Government Notice No R.68, published in Government Gazette No 34983, dated 3 February 2012: Proposed introduction of a new Compulsory Specification for Pressurized Paraffin fulled Appliances (VC 9093) in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).

 

(c)        Government Notice No R.69, published in Government Gazette No 34983, dated 3 February 2012: Amendment of the compulsory specification for cord sets, interconnection cord sets and cord extension sets (VC8029) in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).

 

FRIDAY, 24 FEBRUARY 2012

 

ANNOUNCEMENTS

 

National Assembly

 

The Speaker

 

1.         Referral to Committees of papers tabled

 

(1)        The following papers are referred to the Portfolio Committee on Justice and Constitutional Development:

(a)        Proclamation No R62, published in Government Gazette No 34744, dated 10 November 2011: Commencement of section 1 of the Criminal Procedure Amendment Act, 2008 in listed magisterial districts (Act No 65 of 2008).

(b)        Government Notice No R941, published in Government Gazette No 34744, dated 10 November 2011: Designation of correctional facility in terms of section 159B(2) of the Criminal Procedure Act, 1977 (Act No 51 of 1977).

 

(c)        Proclamation No R73, published in Government Gazette No 34896, dated 22 December 2011: Amendment of proclamation in terms of section 2(4) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996).

(d)        Government Notice No R50, published in Government Gazette No 34969, dated 26 January 2012: Amendment to Regulations for Judicial Officers in the Lower Courts, 1994, in terms of section 16 of the Magistrates Act, 1993 (Act No 90 of 1993), on the recommendation of the Magistrates Commission.

 

(2)        The following papers are referred to the Portfolio Committee on International Relations and Cooperation:

 

(a)        Partnership Framework Agreement between the Republic of South Africa and United Nations Development Programme, tabled in terms of section 231(3) of the Constitution, 1996.

 

(b)        Explanatory Memorandum on the Partnership Framework Agreement between the Republic of South Africa and United Nations Development Programme.

 

(3)        The following papers are referred to the Portfolio Committee on Police for consideration and report:

(a)        Proclamation No 48, published in Government Gazette No 34608, dated 19 September 2011: Notification by the President of entities identified by the United Nations Security Council as being involved in terrorist and related activities, tabled in terms of section 26 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004).

 

(b)        Proclamation No 52, published in Government Gazette No 34625, dated 22 September 2011: Notification by the President of entities identified by the United Nations Security Council as being involved in terrorist and related activities, tabled in terms of section 26 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004).

 

(c)        Proclamation No 53, published in the Government Gazette No 34626, dated 22 September 2011: Notification by the President of entities identified by the United Nations Security Council as being involved in terrorist and related activities, tabled in terms of section 26 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004).

 

(d)        Proclamation No 57, published in the Government Gazette No 34660, dated 6 October 2011: Notification by the President of entities identified by the United Nations Security Council as being involved in terrorist and related activities, tabled in terms of section 26 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004)

 

(4)        The following papers are referred to the Joint Standing Committee on Defence for consideration and to the Portfolio Committee on Defence and Military Veterans:

 

(a)        Letter from the President of the Republic, dated 12 December 2011, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force in fulfillment of the international obligations of the Republic of South Africa towards the Democratic Republic of the Congo.

 

(b)        Letter from the President of the Republic, dated 15 December 2011, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in cooperation with the South African Police Service to secure the 17th United Nations Framework Convention on Climate Change in Durban.

 

(c)        Letter from the President of the Republic, dated 19 January 2012, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in cooperation with the South African Police Service in prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the 2011‑2012 festive season.

 

(5)        The following papers are referred to the Committee on the Auditor-General for consideration and report:

 

(a)        Strategic Plan and Budget of the Auditor-General of South Africa for 2012-2015 [RP287-2011]

 

(6)        The following papers are referred to the Portfolio Committee on Home Affairs:

 

(a)        A list of approved early naturalisation applications for 2010 and 2011 in terms of section 5(9) of the South African Citizenship Act, 1995 (Act No 88 of 1995).

 

(b)        Agreement between the Government of the Republic of South Africa and the Ministry of Interior of the Republic of Cuba regarding technical support, tabled in terms of section 231(3) of the Constitution, 1996.

 

(7)        The following papers are referred to the Portfolio Committee on Trade and Industry:

 

(a)        Government Notice No 893, published in Government Gazette No 34845, dated 9 December 2011: Publication of the Broad- Based Black Economic Empowerment Amendment Bill, 2011 for public comment.

 

(b)        Government Notice No 897, published in Government Gazette No 34839, dated 15 December 2011: Denel (Pty) Ltd granted B-BBEE facilitator status in terms of the Companies Act, 1973 (Act No 61 of 1973).

 

(c)        Government Notice No 1065, published in Government Gazette No 34871, dated 15 December 2011: Prohibition on the use of the national gambling logo in terms of section 15(1)(b) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).

(8)        The following papers are referred to the Portfolio Committee on Water and Environmental Affairs for consideration and report. The reports of the Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:

(a)        Report and Financial Statements of the Mhlathuze Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11[RP 200-2011].

 

(b)        Report and Financial Statements of the Lepelle Northern Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11.

 

(c)        Report and Financial Statements of the Magalies Water Board for 2010-11, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2010‑11.

 

(d)        Report and Financial Statements of the Bushbuckridge Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11.

 

(e)        Report and Financial Statements of the Bloem Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11.

 

(f)         Report and Financial Statements of the Sedibeng Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11.

 

(9)        The following papers are referred to the Standing Committee on Finance:

(a)        Government Notice No R895, published in Government Gazette No 34714, dated 28 October 2011: Amendment of Air Passenger Tax (APT/4) in terms of section 47B(2)(b)(i) of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(b)        Government Notice No R939, published in Government Gazette No 34741, dated 8 November 2011: Amendment of Rules (DAR/92) in terms of sections 60 and 120 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(c)        Government Notice No R928, published in Government Gazette No 34735, dated 11 November 2011: Amendment of Schedule No 4 (No 4/344) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(d)        Government Notice No R929, published in Government Gazette No 34735, dated 11 November 2011: Amendment of Schedule No 1 (No 1/1/1431) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(e)        Government Notice No R995, published in Government Gazette No 34806, dated 2 December 2011: Amendment of Schedule No 1 (No 1/1/1434) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

(f)         Government Notice No R996, published in Government Gazette No 34806, dated 2 December 2011: Amendment of Schedule No 1 (No 1/1/1435) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(g)        Government Notice No R997, published in Government Gazette No 34806, dated 2 December 2011: Amendment of Schedule No 3 (No 3/678) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(h)        Government Notice No R1027, published in Government Gazette No 34832, dated 7 December 2011: Exemptions from the application of the Preferential Procurement Regulations, 2011, published in Government Notice No 502 of 8 June 2011, in terms of section 3 of the Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000).

 

(i)         Government Notice No R1035, published in Government Gazette No 34840, dated 15 December 2011: Amendment of Rules (DAR/94) under sections 54F and 120 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(j)         Government Notice No R1036, published in Government Gazette No 34840, dated 15 December 2011: Amendment of Schedule No 6 (No 6/679) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(k)        Government Notice No R1037, published in Government Gazette No 34840, dated 15 December 2011: Amendment of Schedule No 3 (No 3/679) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

(l)         Government Notice No R1038, published in Government Gazette No 34840, dated 15 December 2011: Correction Notice: Amendment of Rules (DAR/95) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(m)       Government Notice No R1039, published in Government Gazette No 34840, dated 15 December 2011: Amendment of Rules (DAR/93) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(n)        Government Notice No R1040, published in Government Gazette No 34840, dated 15 December 2011: Amendment of Schedule No 1 (No 1/3B/15) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(o)        Government Notice No R1058 published in Government Gazette No 34854, dated 21 December 2011: Amendment of Schedule No 2 (No 2/340) in terms of section 56 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(p)        Government Notice No R1066, published in Government Gazette No 34859, dated 23 December 2011: Amendment of Schedule No 1 (No 1/1/1436) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(q)        Government Notice No R1067, published in Government Gazette No 34859, dated 23 December 2011: Amendment of Schedule No 1 (No 1/1/1437) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(r)         Government Notice No R1068, published in Government Gazette No 34859, dated 23 December 2011: Amendment of Schedule No 2 (No 2/341) under section 56 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(s)        Government Notice No R1074, published in Government Gazette No 34859, dated 23 December 2011: Amendment of Rules (DAR/96) under sections 75 and 120 of the Customs and Excise Act, 1964 (Act No 91 of 1964).

 

(t)         Government Notice No R1076, published in Government Gazette No 34877, dated 23 December 2011: Amendment of regulations made under section 70 of the Short‑term Insurance Act, 1964 (Act No 53 of 1998).

 

(u)        Government Notice No R1077, published in Government Gazette No 34877, dated 23 December 2011: Amendment of regulations made under section 72 of the Long‑term Insurance Act, 1964 (Act No 52 of 1998).

 

(10)       The following paper is referred to the Committee on Public Accounts for consideration:

(a)        General Report of the Auditor-General on the National Audit Outcomes for 2010‑11 [RP256-2011].

 

(11)       The following paper is referred to the Committee on Public Accounts for consideration and to the Portfolio Committee on Cooperative Governance and Traditional Affairs:

 

(a)        Consolidated General Report of the Auditor-General on the Provincial Audit Outcomes for 2010‑11 [RP260-2011].

(12)       The following paper is referred to the Portfolio Committee on Social Development for consideration and report:

 

(a)        Erratum on the 2011‑12 Annual Performance Plan of the Department of Social Development [RP43‑2011].

 

TABLINGS

 

National Assembly and National Council of Provinces

 

1.         The Minister of Trade and Industry

 

(a)        General Notice No 103, published in Government Gazette No 35013, dated 7 February 2012: Codes of Good Practice in terms of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003).

 

Please note: The following entry replaces items 4 (a) under Tablings in the ATC of 23 February 2012:

 

(b)        General Notice No R. 67, published in Government Gazette No 34983, dated 3 February 2012: Amendment of the Regulations of the Act in terms of the Trade Metrology Act, 1973 (Act No 77 of 1973).

 

COMMITTEE REPORTS

 

National Assembly

 

THE FOLLOWING REPORT REPLACES THE REPORT OF THE PORTFOLIO COMMITTEE ON COMMUNICATIONS PUBLISHED IN ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS No. 14 – 2012 ON 20 FEBRUARY 2012, P225.

 

1. Report of the Portfolio Committee on Communications on the performance management system to monitor and evaluate Independent Communications Authority of South Africa (Icasa) chairperson and councillors, dated 14 February 2012

 

The Portfolio Committee on Communications, having considered the performance management system to monitor and evaluate the Icasa chairperson and councillors, submitted for consultation with the National Assembly in terms of section 6A of the Independent Communications Authority of South Africa Act, 2000 (No13 of 2000), as amended, reports as follows:

 

The request from the Minister of Communications to consider the performance management system to monitor and evaluate the Icasa chairperson and councillors was referred to the Portfolio Committee on Communications on 24 August 2011 (see ATC 24 August 2011).

 

After having consulted and having received briefings from the Department of Communications on 7 June 2011 and 14 February 2012, the Committee recommends that the performance management system be approved.

 

Report to be considered.

 

MONDAY, 27 FEBRUARY 2012

 

TABLINGS

 

National Assembly and National Council of Provinces

 

1.         The Minister of Agriculture, Forestry and Fisheries

 

(a)        Report and Financial Statements of the South African Veterinary Council for 2010-2011, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-2011.

 

2.         The Minister of Trade and Industry

 

(a)        Strategic Plan of the Small Enterprise Development Agency (SEDA) for 2012/2013 - 2016/2017 and Annual Performance Plan for 2012/2013 - 2014/2015.

 

(b)        Strategic Plan of the National Lotteries Board for 2012 - 2017 and Annual Performance Plan for 2012-2015.

 

(c)        Strategic Plan of the National Gambling Board (NGB) for 2012 - 2017 and Annual Performance Plan for 2012-2015.

 

(d)        Strategic Plan of the National Metrology Institute of South Africa (NMISA) for 2012/13 – 2016/17 and Annual Performance Plan for 2012/13 – 2014/15.

(e)        Strategic Plan of the National Credit Regulator (NCR) for 2012 - 2017 and Annual Performance Plan for 2012 - 2015.

 

(f)         Strategic Plan of the National Regulator Compulsory Specifications (NCRS) for 2012 - 2017 and Annual Performance Plan for 2012 - 2015.

 

(g)        Corporate Strategic Plan of the Estate Agency Affairs Board (EAAB) for 2012/13 – 2016/17 and Annual Performance Plan for 2012/13– 2014/15.

 

(h)        Strategic Plan of the National Consumer Tribunal (NCT) for 2013 – 2017 and Annual Performance Plan for 2013 - 2015.

 

(i)         Strategic Plan of the South African National Accreditation System (SANAS) for 2012/13 - 2016/17 [RP 17-2012] and Annual Performance Plan for 2012/13– 2014/15 [RP 16-2012].

 

(j)         Strategic Plan of the National Empowerment Fund (NEF) for 2012/13 -2015 and Annual Performance Plan for 2012/13- 2015.

 

(k)        Strategic Plan of the National Consumer Commission (NCC) for 2012/2013 - 2016/2017 and Annual Performance Plan for 2012/2013- 2014/2015.

 

(l)         Strategic Plan of the Companies and Intellectual Property Commission (CIPC) for 2012 – 2017 and Annual Performance Plan for 2012 – 2013.

 

(m)       Corporate Strategic Plan of the Export Credit Insurance Corporation of South Africa SOC Limited (ECIC) for 2012/13 - 2014/15.

 

(n)        Corporate Plan of the South African Bureau of Standards (SABS) for 2012/13 - 2014/15 and Business Plan for 2012 - 2013.

 

COMMITTEE REPORTS

 

National Assembly

 

1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON ITS STUDY TOUR TO THE FEDERAL REPUBLIC OF GERMANY ON 02 – 09 DECEMBER 2011, DATED 22 FEBRUARY 2012

 

The Portfolio Committee on Higher Education and Training, having undertaken an international study tour to Germany from 02 – 09 December 2011reports as follows:

 

1.         Introduction

The Portfolio Committee on Higher Education and Training undertook a study tour to the Federal Republic of Germany from 02 – 09 December 2011. The main purpose of the study tour was to obtain in-depth knowledge of the German post school education system with special focus on vocational education and training (VET) and skills development. The study tour was also a benchmarking exercise to ascertain the level of South Africa’s post school education system compared with that of Germany to ensure that best practices may be incorporated into the country’s post school education system.

The Committee interacted with various stakeholders including federal government ministries responsible for vocational education and training and skills development. During the study tour visit, the Committee had an opportunity to interact with the following stakeholders / ministries, namely: the South African Embassy, the Confederation of German Trade Union, Siemens, the German Parliament, Humbodlt University, Federal Ministry for Economic Cooperation and Development, the Federal Ministry of Education and Research, the Chamber of Skilled Crafts and Vocational Training, the Federal Institute for Vocational Training and International Marketing for Vocational Education.

 

The Committee had an opportunity to conduct site observations at the vocational training institutions to observe the dual education system in practice. During the site visits the Committee had an opportunity to interact with the students who were enrolled in the dual education system.

 

2.         Background

South Africa had a serious challenge of a high unemployment rate especially among young people between the ages of 18 – 24. It was estimated that 2.8 million young people of this age group were neither in school, training or partaking in any form of employment and, 2 million of them had no school leaving qualification. One of the reasons attributed to high unemployment among the youth was the lack of skills relevant to the labour market. This posed a considerable constraint on the country’s social and economic development.

 

Apart from exercising the overall oversight function over the Department of Higher Education and Training and its entities, the Committee had a duty to investigate and gather information and develop knowledge on international best practices. The information gathered on best practices was then summarised into recommendations which were later transferred to the Department of Higher Education and Training for implementation and intervention where necessary.

Germany was the country of choice for the Committee to visit owing to its successful dual education system. Germany is Europe’s largest economy and the third biggest economy in the world. The country is highly industrialized with specialization in auto-mobiles, mechanical engineering and mechatronics. The essence of the quality exhibited by German products can in many ways be attributed to the skill level of its industrial workers. Their high skill levels are a direct result of the country’s apprenticeship training programmes, more commonly referred to as the dual educational system.

 

The dual education system of Germany is a joint responsibility of the state and industry. Education and training is conducted at the company’s learning venues and vocational school. At the time of the study tour, there were 350 occupations registered and recognised by the state with 1.6 million trainees.  Approximately 482 000 companies were providing vocational training.

 

3.         Composition of the Delegation

 

3.1        The Parliamentary delegation

The multi-party delegation from the Portfolio Committee on Higher Education and Training comprised of Adv I Malale, Chairperson (ANC); Ms N Gina (ANC); Mr S Makhubele (ANC); Mr C Moni (ANC); Ms W Nelson (ANC); Dr J Kloppers-Lourens (DA) and Mr A van der Westhuizen (DA).

 

Support Staff: Mr A Kabingesi: Committee Secretary and Ms M Modiba: Researcher.

 

3.2        Department of Higher Education and Training

Ms N Vukuza: Deputy Director-General / International Attache and Ms B Mtyingizana: Director, International Affairs.

3.3        South African Embassy

Mr M Stofile: Ambassador; Mr S Gwexe: First Secretary, Education; Mr G Mamabolo: First Secretary, Economics and Ms M Manenzhe: First Secretary, Marketing.

 

3.4        Deustcher Gewerkschaftsbund Bundesvortstand (DGB) / Confederation of German Trade Union

Mr H Nehls: Representative.

 

3.5        Siemens

Mr M Stockmann: Head of Siemens, Professional Education; Ms K Steir: International Relations and Mr H Hohn: Vice President, Siemens Government Affairs.

 

3.6        Bundestag / German Parliament

Ms U Burchardt: Chairperson, Committee on Education; Mr A Deyer: Committee Secretary and Ms D Schechler: Interpreter.

 

3.7        Humbodlt University

Dr U Hans: Head International Office and Ms U Spanamberg: International Students Advisor.

 

3.8        Bundesminsterium fur wirtschftliche Zusammenarbet und Entwicklung / Federal Ministry for Economic Cooperation and Development & Deutsche Gesellschaft für Internationale Zusammenarbeit   (GIZ)

Dr K Prezyklenk: Senior Advisor; Ms J Hett: Desk Officer, South Africa; Mr T Alberts: Director, Commission for Africa and Mr M Ammosse: Intern.

 

3.9        Befufsfortbildungswerk (bfw)

Ms J Schultz: Assistant Manager, Labour Markets Projects and Services; Ms E Meyer: Project Manager and Ms S Becker.

 

3.10      Bundesministerium fur Bildung und Forschung (BMBF) / Federal Ministry of Education and Research

Mr M Hetzger: Director of the Department; Ms C Stertz: Director of Sub-Department; Mr P Weber: Director Vocational Training; Ms A Solymosi: Programme Officer and Ms N Hertz: Senior Scientific Officer.

 

3.10.1   Handswerkskammer Klobenz / Chamber of Skilled Crafts

Mr P Rechmann: Project Coordinator for Asia, Africa and Moldova and Mr R Muller: Engineer.

 

3.10.2   Bundesinstitut fur Berufsbildung (BiBB) / Federal Institute for Vocational Training and International Marketing for Vocational Training (iMove)

Prof F Esser: President; Ms M Sinthern: Public Relations Officer; Mr H Tutschner: Head Company and Individual Customer related Service Occupations; Ms M Verfuth: Advisory Service and International Cooperation; Mr F Wahl: Project Coordinator and Ms M Maykens: iMove Officer.

 

4.         Summary of presentations

 

4.1        South African Embassy

Mr M Stofile, Ambassador, led the presentation which highlighted the following key issues:

* The main role of the Embassy was to maintain / develop the partnership and agreements that existed between South Africa and Germany. Germany was the number one trade and political partner of South Africa within the European zone, and there were many areas of interest shared between the two countries.

* The Embassy was also responsible for facilitating logistical arrangements of South African delegations that planned to meet with the German authorities for official purposes.

* The Embassy also advised any South African delegation that visited Germany to submit their report of the study tour, including agreements reached to ensure that a follow up can be made.

* The Mpumalanga delegation that visited Germany in the past had not made a follow-up with an agreement that was under service, which was a matter of concern for the Embassy, since Germany was aiming to help other countries with this agreement.

* The Embassy warned the Committee about getting into agreements with German institutions without honouring or servicing those agreements.

* The Minister of Higher Education and Training, Dr B Nzimande visited Germany in March 2010. The Minister participated in the iMove roundtable where he highlighted the challenges of skills development faced by the country.

 

Mr S Gwexe, First Secretary Education, proceeded with the presentation and highlighted the following:

* The German dual education system had been very progressive since the re-unification of the country 21 years ago. The country was by far the leading industrialised economy of Europe, specializing specifically in auto-mobiles, mechatronics and mechanical engineering.

* Germany had 600 companies that were fully operational in South Africa making it one of their biggest trading partners.

* The dual education system allowed students to choose their career path in primary schooling from as early an age as 10 years. By the time students reached the age of 18 years, they would be absorbed by industries to participate in the apprenticeship programme, which is a major step to further their career. Different partners were involved in the dual system which included the state, employers and unions.

* The Employers were responsible to fund the training programmes including providing employment for the student upon completion of their apprenticeship.

 

4.2        Deustcher Gewerkschaftsbund Bundesvortstand (DGB) / Confederation of German Trade Union presentation on Role of Social Partners in Vocational Education and Training

Mr H Nehls led the presentation which highlighted the following key issues:

 

* The DGB was a combined federal union which represented eight trade unions on various critical elements of labour or society to the government. The DGB represented 6 million workers from different sectors, with 2 million from industries, 1.2 from the public sector, 800 000 from chemical industries and the balance from other small sectors of the economy.

* The core mandate of the DGB was to critically engage on issues of a minimum wage for all workers in various sectors, the economic crisis of the eurozone, and ecological issues.

* The training of apprentices was conducted at the workplace and in school. However, students spent most of their time doing practical work in companies rather than in schools. There were currently 350 training occupations recognized by the state.

* The vocational education and training system had approximately 1.6 million trainees, 39% were women, and the entire education system had 2.3 million students. There were 2 million companies in Germany, of which 402 000 (25%) provided artisan training.

* The union’s main approach in assisting workers was to encourage them to participate in training programmes so that they could improve their qualifications and thus access the labour market. The high unemployment rate among young people in the country was owing to the fact that they were unqualified.

* The Vocational Education and Training Act of 1969 was the main legislation which regulated the vocational education system.

* The dual education system had three different approaches, namely, employers paid for the training programmes, trainees obtained a stipend average of 630 euros, and trainees were absorbed by the employer upon completion of their programme.

* The normal duration of the training programme took three years to complete. After that, trainees had the choice to either work or enroll in higher education.

* The unions played a very critical role in the development of vocational education and training. All the proposals for new training programmes were developed in consultation with employers and unions.

 

4.3        Siemens

Mr M Stockmann, Head of Seimens, Professional Education, led the presentation which highlighted the following key issues:

 

* Siemens was established 150 years ago in a garage by Mr B von Seimens in Germany. The company had grown to be represented in more than 150 countries worldwide with more than 400 000 employees. The turnover profit of the company in 2010 was 3.9 billion euros.

* The vocational education and training institution in Berlin was the largest training centre of Siemens. Seimens was located in 40 regions within the German boundary. The company spent 167 million euros per annum on training programmes with the majority of the programmes focusing on the technical aspect of training.

* The dual education system was being implemented at Siemens Professional Education institutions across Germany. The advantage of this system was that employees were highly qualified, highly productive and future oriented. There were approximately 1400 trainees located in the Berlin centre.

* Siemens offered both practical and theoretical aspects of learning under one training centre.

* Project and process oriented learning in exemplary trade oriented tasks included; knowledge management and networking and self dependant work-based comprehensive learning.

* The International Education and Development Programme (IEDP) was a programme aimed at preparing potential managers of the company. Employees from other countries were transferred on a three months course in Germany to focus on networking, knowledge transfer, teambuilding and intercultural network.

* The Siemens mechatronics system certification programme was implemented on three levels. Level 1 included assistants, Level 2 included technicians and Level 3 included highly trained professionals.

* The examinations of the training centre were evaluated by an independent body responsible for setting norms and standards for vocational training.

* Siemens had partnerships with South African institutions on the development of students in technical disciplines. The Nelson Mandela Secondary School Project for learners between Grades 7 and 12, and a partnership with the Cape Peninsula University of Technology (CPUT) on mechatronics had been established.

 

4.4        Bundestag / German Parliament

Ms U Burchardt’ Chairperson, Committee on Education, led the presentation which highlighted the following key issues:

 

* The Education Committee in Germany faced similar challenges with those of the South African education system. The Organisation for Economic Commonwealth Development (OECD) report on education systems of various countries painted a negative picture of the German education system. The findings of the report confirmed that the German education system was weak and there was a high drop-out rate in secondary education.

* The federal state offered free education until secondary schooling and higher education was being susbsidised.

* The main challenge of the Committee was that 15% of children exited the system with no qualification. The Committee was discussing the possibility of extending primary schooling from four to six years to address this challenge.

* The dual education system was working efficiently in the country since more than 50% of children obtained a vocational qualification.

* The Committee was responsible for processing and passing laws to regulate the vocational education system. Legislation provided the framework for regulating trades and occupations.

 

4.5        Humboldt University

Dr U Hans, Head of the International Office, led the presentation which highlighted the following key issues:

 

* The university was founded in 1810 by Mr Wilhelm von Humboldt and was Berlin’s oldest university. His idea was to create a new kind of university that guaranteed academic freedom and the freedom to research. He was an explorer and scientist and inspired the creation of the Natural Sciences.

* The university commenced with 256 students and 52 professors in 1810. There were 29 Nobel Prize Winners who graduated from the university, including famous scholars such as Albert Einstein, Karl Marx and Hagel.

* Currently, there were 11 faculties in the university, 36 000 students, 5000 of them came from abroad, 400 professors and the budget of the university was 2.3 million euros.

*  The university was committed to reform and stayed clear of political influence. The university boasted the largest medical faculty in Europe and was one of Germany’s top research universities.

* Germany had 250 universities and students were required to apply and meet certain admission requirements before they can be accepted for any programme.

 

4.6        Bundesminsterium fur wirtschftliche Zusammenarbet und Entwicklung / Federal Ministry for Economic Cooperation and Development & Gesellschaft für Internationale Zusammenarbeit (GIZ)

 

a) German Development Cooperation with Africa

Dr K Prezyklenk, Senior Advisor, led the presentation which highlighted the following key issues:

* The importance of Africa for Germany and the EU had increased, among other things, owing to the dynamic geopolitical developments in Africa in the past few years. Through the Joint Africa-EU Strategy adopted in Lisbon in 2007, Africa and the EU launched a comprehensive political initiative geared towards putting the two continents’ relations on a new partnership-based foundation, moving beyond traditional cooperation.

* Germany was on track to meet the commitment made by the G8 countries at Gleneagles in 2005 to double aid to Africa by 2010.

* The bilateral commitments for Africa had risen further. Whilst they totaled 420 million euros in 2004, they reached 1.2 billion euros in 2009, thus almost trebling. The commitments for 2010 were at a similarly high figure.

* The political goal of Germany was that Africa increasingly become able to solve its own problems in a sustainable manner to harness its great potential.

* Germany was currently using the integrated set of all its instruments for bilateral cooperation with 25 partner countries in Africa. In cooperation with partner countries, priority areas covered were good governance, rural development, sustainable economic development, health energy and education. Germany was a major donor to government projects, with funding in this area amounting to more than $200 million.

* Germany was the largest bilateral donor in the water sector for Africa, with commitments running to some 300 million euros.

* In future, Germany, in its development cooperation with Africa, will step up its support even further for partner countries in the areas of education, health, climate protection and rural development.

 

b) South African – German Development Cooperation

Ms J Hett, Desk Officer South Africa, led the presentation which highlighted the following key issues:

* The skills shortage presented an obstacle to greater economic growth and the wider use of renewable energies. People with limited training, or no training at all, have little chance of finding employment in the formal sector.

* The future “Green Skills” programme was aimed to help the skills shortage in the green economy. The new programme was made up of two components. Component 1 (vocational education and training in green skills) was aimed at introducing a green component to existing training courses and supporting the development of training programmes for new jobs for which there was a growing demand within the green economy. Component 2 was concerned with green technology within industry and the development of innovations. Some green technology measures were already being implemented.

* A special focus was on adapting vocational training to the needs of the labour market and on supporting the Sectoral Education and Training Authorities (SETAs) in matchmaking between business and trainees.

* Since 2001, 6.3 million employees received further training and 400 00 people had been trained in long-term courses for employment in the formal labour market. Of these, 79% found employment within six months of completing the course. Since 2005, over 350 000 unemployed people had taken part in short training courses. Of these, 66% went on to find employment.

* The new Green Skills programme would begin in early 2012. Under the energy programme, a pilot project for training energy auditors had been conducted. So far, 35 trainees qualified as energy auditors and most had succeeded in finding employment.

 

4.7        Befufsfortbildungswerk (bfw)

Ms E Meyer, Project Manager, led the presentation which highlighted the following key issues:

* The bfw was one of the first institutions of continuing education in former West Germany. It was founded in 1953 by the Deustcher Gewerkschafts Bund (DGB) / Confederation of German Trade Unions.

* The key principles of bfw included, but not limited to; commitment to the fundamental concept of trade unions, protection of employees’ rights and support work councils in determining employees’ educational needs.

* Bfw was one of the largest suppliers of job qualifications and training courses in Germany. It was a certified and accredited educational institution with approximately 2000 employees and 60 000 students.

* Bfw focused on three areas of responsibility, namely, Vocational Training and Retraining (in collaboration with businesses), preparation for vocational training of adolescents and continuing professional training of adults, employed or unemployed.

* In terms of vocational training, bfw cooperated with business to conduct apprenticeships for adolescents who were unable to find a company prepared to employ them.

* In terms of vocational retraining, bfw trained adults with or without qualifications in a new profession. The institution offered theoretical training while business and companies offered practical, on-the-job training. The duration of the training was between 20 – 24 months.

* The German federal and state governments offered grants to occupational and vocational education and training centres. These monies largely came from tax contributions paid by all employees (50%) and employers (50%). These funds had to be applied for in a highly competitive market. In order to obtain such a grant, innovative project ideas for specific areas of individuals were required.

* The bfw was looking for interested partners to work with them, or who intended to establish a similar system of vocational training in their own countries.

 

4.8        Bundesministerium fur Bildung und Forschung / Federal Ministry of Education and Research

 

a)         The Federal Ministry of Education and Research

Mr P Weber: Director Vocational Training led the presentation which highlighted the following key issues:

* Bonn was the German capital from 1949 to 1990. A number of Ministries still had their headquarters in Bonn rather than Berlin and, the BMBF was one of them. The BMBF was headed by Prof A Schavan, Minister with four State Secretaries reporting to her. The BMBF had approximately 1000 employees of which 750 were in Bonn and 250 in Berlin.

* The Federal Republic of Germany was made up of 16 autonomous states (Lander), each with its own constitution and responsibilities. Together, the 16 Lander made up the German Federal State (Bund).

* The Federal Government had competing legislation authority for non-school-based vocational training, training grants, support of scientific research and university admissions and degrees.

* The joint responsibilities shared between the Landers and Bund included funding of science and research, educational reporting and joint recommendations.

* The aims of the “Qualification Initiative for Germany” included making education a top priority in Germany, giving every child a top priority, ensuring that everyone can acquire a school-leaving or vocational qualification and encouraging more young people to pursue university studies.

* The Future Investment Act included extensive investment of 8.7 euros in the educational infrastructure. Current examples included early childhood education and care infrastructure, universities, municipal or non-profit continuing education institutions and research.

* In terms of future prospects, Germany would invest 10% of the Gross Domestic Product (GDP) in education and research by 2015, admitting 275 000 additional first year students to university by 2015, promoting top class university research and giving more support to major science and research organizations.

 

b)         German – South African Year of Science 2012 / 2013

Ms N Hurtz: International Bureau of the BMBF led the presentation which highlighted the following key issues:

* The International Science Years were part of the Federal Government’s Strategy for the Internationalization of Science and Research carried out together with a strategically important partner country and, focused on research, education and innovation.

* The examples of German International Years of Science in other developing countries included Egypt 2007, Israel 2008, China 2009, Brazil 2010 and Russia 2011.

* The goals of the German – South African Year of Science included visualizing the existing variety of co-operations and their excellence; initiating new partnerships between research institutions, universities and companies and enhancing the institutional cooperation between Ministries, intermediary and funding organizations.

* The target groups included decision-makers in politics, research facilities, funding organizations, educational institutions and providers, young scientists, disseminators and the general public with an interest in science.

* The thematic areas were climate change, human capital development, bio-economy, urbanisation, astronomy, health innovation, social sciences and the humanities.

* The launch of the German – South African Year of Science was planned for April 2012 and the closing event planned for April 2013. A joint research programme with the Department of Science and Technology (DST) would be established.

 

c)         Dual Training at a Glance

Ms C Stertz, Director of the Sub-Department, led the presentation which highlighted the following key issues:

* Dual training was mainly provided in the company supported by teaching in part-time vocational schools (Berufsschule). Learning in the company took three to four days per week on the basis of training regulations, within the framework of a training contract, taking place mainly at the workplace.

* The training regulations covered the following: state recognition of the occupation, designation of the occupation, duration of training, the overall training plan and examination requirements.

* The training contract covered the following in particular: the training period, the training content, termination of employment and the allowance paid to the trainee.

* Learning at school took between 1 - 2 days per week on average on the basis of a framework curriculum. The curriculum of part-time vocational schools included vocational subjects and general subjects, teaching followed an activity based approach in fields of learning.

* General education was a multi-track system with different types of schools governed by Lander law. The Conference of Landers Ministers decided on common approaches, inter alia regarding recognition of types of schools, standards and final qualifications.

* The advantages of the dual system included job specification qualification, productive performance of trainees, increased motivation and loyalty to company and secured skills needed.

* The dual system was a successful model since the majorities of young people (60%) chose it. There were about 1.6 million trainees in approximately 340 training occupations.

* Facts and figures: The percentage of learners with no school leaving certificate was 25%, higher education entrance qualifications 17%, intermediate school leaving certificate was 39%, and secondary generation school leaving certificate was 30%.

* Financing of dual training was a joint initiative between companies and Lander. Companies contributed 14.7 billion euros (84%) and Lander 2.3 billion euros (16%).

 

4.9        Handswerkskammer Klobenz / Chamber of Skilled Crafts

Mr P Rechmann, Project Coordinator, led the presentation which highlighted the following key issues:

* The Chamber of Skilled Crafts determined occupations which were part of the crafts sector. This included 151 occupations, divided into seven branches. These branches included building and interior trades; electrical and metalworking trades; woodcrafts and plastic; health and body care trade; chemical and cleaning sector; clothing, textiles and leather crafts and trades, glass, paper, ceramics, food crafts and trades.

* The 54 Chambers of Skilled Crafts were self governing, non-profit corporations under public law with compulsory membership for each skilled craft enterprise. The Chambers represented the interests of the crafts sector in their district vis-avis political institutions, public administration and society. The Chambers also kept the crafts register and were responsible for holding examinations.

* The Chambers were by law competent bodies with regards to vocational training. They registered all apprenticeship contracts, monitored all apprenticeships, organised examinations from apprentice to master, and appointed members of the Vocational Training Committee and Examination Boards.

* The results of the regulation of various crafts led high quality training in all companies irrespective of size or location and offered flexibility.

* The Master of Crafts examination was a master degree required for establishing a company in many occupations. The participants in this training were offered grants by the federal government. The minimum training offered by the Chamber was two years and short-courses were not offered.

* The main income of the Chamber was obtained from training (financed by companies), membership fees and government grants.

 

4.10      Bundesinstitut fur Berufsbildung (BiBB) / Federal Institute for Vocational Training and International Marketing for Vocational Training (iMove)

 

a)         Welcome

Prof H Esser President of BiBB, welcomed the Delegation and gave the following introductory remarks:

* The BiBB was a national and international institution of research and development in the Vocational Education and Training (VET) system that represented Germany internationally.

* The BiBB promoted the VET system internationally especially in developing / emerging industrialised countries. The VET system was in demand due to its dual system. The demand for advisory services in the VET system had risen in developing countries in the past few years as they were using this system to improve their productivity.

* The shortage of skilled workers was a huge challenge for developing countries and the VET system offered points of departure for modernisation of this system in partner countries.

* Skills Development in South Africa should be aligned to economic policies of the country to reduce unemployment, especially among young people. The VET system was industry driven and, it was crucial for South Africa to compel industries to take students for vocational training.

 

b)         The system of Continuing Education and Training and its Permeability

Mr H Tutschner, Head of Company and Individual Customer Related Service Occupations, led the presentation which highlighted the following key issues:

* The BiBB worked with different stakeholders and practitioners of the VET system. The business objectives of the BiBB was providing support personnel in VET, identifying future skills, developing new methods in teaching and training, assessing the quality of distance learning and analysing structural development in the labour market.

* The organs of the Federal Institute for the VET Board included eight members from Employer Organisations, five from government, and eight from Unions and eight from the Lander (Region / Provincial Government). The board determined the affairs of the BiBB. The BiBB was the biggest institution responsible for the VET system.

* The Vocational Education and Training Act was introduced in 1959 and reformed in 2005. The Act regulated all training practices of the VET system.

* The VET system presented challenges when it came to its implementation, especially in small developing countries.

* In 2010, 10% of learners had no vocational qualification, 20% had a university degree, and 11% had a technical qualification. These results indicated that Germany faced serious challenges in its education system.

* Approximately 50% of school leavers opted for vocational education rather than university since it provides more opportunities for employment than any other form of training in Germany.

 

c)         BiBB International Advisory Services

Ms M Verfurth: Advisory Services and International Cooperation led the presentation which highlighted the following key issues:

* The international advisory service of the BiBB provide advise regarding modernization of VET financing, staff development, forms of training, VET research, information and communication platforms.

* The instruments used to promote VET system; coaching, professional consultation, workshop training, studies and monitoring and evaluation.

* The BiBB had good cooperation with RSA. The BiBB delegation visited the country in 2010 where meetings were held with the DHET in Pretoria.

 

d)         International Marketing of Vocational Education (iMove)

Ms M Maykens, iMove Officer, led the presentation which highlighted the following key issues:

* iMove was a service agency established by Federal Ministry of Education and Research (BMBF) founded in November 2001.

* The iMove offices were located at BiBB and the agency had a team of 13 employees.

* iMove’s mission included the promotion of German providers of VET, facilitating international business activities and co-operation between German training providers and partners abroad.

 

5.         Observations

The Portfolio Committee on Higher Education and Training, having interacted with various institutions during its study tour, made the following observations:

 

5.1        Meeting with the Embassy

5.1.1 The meeting with the Embassy provided an opportunity for the Committee to be aware of the latest developments in relation to higher education and training in Germany. The meeting also provided some brief background on the different visits that had been conducted by various delegations from South Africa.

5.1.2 The meeting gave a synopsis of the Minister’s participation in the iMove roundtable in 2010 where he interrogated the German education system, focusing particularly on skills development.

5.1.3 It was agreed that the Committee would make follow-ups on the pending follow-up by the Mpumalanga Provincial Government on education agreements with the German government.

 

5.2        Meeting with DGB / Confederation of German Trade Union

5.2.1 It emerged that the DGB did not articulate on the critical weaknesses of the German vocational education and training system.

5.2.2 It was agreed that the Committee should benchmark the Vocational Education and Training Act with the Skills Development Act to look at best practices that may be of assistance to enhance skills development in the country.

5.2.3 It was noted that the DGB was fully involved in the development of vocational education programmes and this might serve as a model for trade unions in the country to follow suit.

5.2.4 The Committee commended the DGB’s approach in encouraging workers to obtain qualifications for their own development.

5.2.5 The German education system prioritsed artisan training more than any other training programmes.

 

5.3        Meeting with Siemens

5.3.1 The Siemens training centre in Berlin was similar to other training centres that were available in South Africa. However, the effective utilization of its facilities was the factor that made Siemens successful in its programme offering.

5.3.2 The management and coordination of the vocational training at the institution was very effective and, students were in touch with what was happening in the workplace.

5.3.3 The trainers at the institution were very well trained (organized lecturing system) and committed to their tasks.

5.3.4 Good measures for sustainability of the company were implemented effectively.

5.3.5 The main core area of Siemens focused on skills development to improve productivity of the company and the well being of students.

5.3.6 The company invested resources in research and development often neglected by South African companies.

5.3.7 Siemens was a multinational company that contributed to skilling people to participate in the global economy.

5.3.8 The company’s training and development policies were well coordinated which sustained the effectiveness of vocational training.

5.3.9 The apprenticeship programme had duration of 2-3 years with students receiving stipends during the duration of the programme.

5.3.10 Institutional memory of the company was sustained tremendously and this led to effective continuity.

 

5.4        Meeting with Humboldt University

5.4.1 The German university system differed significantly with the vocational training institutions to such an extent that students who chose vocational training had minimal chances of studying in universities.

5.4.2 The university conducted research that was based on societal needs with little or no political influence.

5.4.3 University councils consisted of university staff and no members of communities or other constituencies were allowed in the council. The councils consisted of 10 members.

5.4.4 The university had a serious drop-out rate which was a major challenge.

5.4.5 The university was considering the possibility of offering free undergraduate education where learning would be fully susbsidised by the state.

5.4.6 The university was willing to admit more international students including those coming from South Africa.

5.4.7 The German political organs respected the institutional autonomy and academic freedom of the universities because the time span of politicians was too short to enable proposed solutions to work effectively. The Committee also supported the autonomy of the universities because the political environment changed from time to time.

5.4.8 The articulation process from vocational education and training to university was in place though it was underutilised.

5.4.9 The university had partnerships with only the best performing Western Cape institutions.

 

5.5        Meeting with Bundesminsterium fur wirtschftliche Zusammenarbet und Entwicklung / Federal Ministry for Economic Cooperation and Development & Gesellschaft für Internationale Zusammenarbeit (GIZ)

5.5.1 The Committee commended the involvement of the German government in the development programmes in South Africa.

5.5.2 The strategy of the Ministry was to build capacity of the developing nation’s skills development plans.

5.5.3 There was a need for the Committee to obtain more information on the developmental partnership with the GIZ.

 

5.6        Befufsfortbildungswerk (bfw)

5.6.1 The institution provided an opportunity for those with no formal schooling to obtain employment opportunities and participate in the economy.

5.6.2 The institution was committed to its vocational training to such an extent that programmes had duration of 2-3 years and trainees were assisted in obtaining employment after completion of the programme.

5.6.3 The tracer system used by the institution was effective, a factor that many training centres in South Africa lacked.

5.6.4 There was a high absorption rate in the labour market for trainees who had undergone training at bfw owing to its good relations with companies.

5.6.5 The success rate of trainees who trained at bfw was commendable.

5.6.6 Trainees were also offered social support (stipends) in addition to the vocational training in order to complete the training successfully.

5.6.7 University graduates with no employment were retrained for new programmes to enhance their chances of obtaining employment.

5.6.8 The utilisation of funding for the training programme was very effective.

 

5.7        Bundesministerium fur Bildung und Forschung / Federal Ministry of Education and Research

5.7.1 The Ministry acknowledged that its higher education system was not as effective as the vocational education system, owing to the fact that many young people exited the school system without university exemption.

5.7.2 The majority of learners in Germany chose the VET system since it offered more opportunities to gain employment and income while on training compared to university education.

5.7.3 The 2012 Year of Science partnership between Germany and South Africa was an opportunity for the country’s higher education institutions to improve their research and development initiatives. It was also an opportunity for industries to invest in this partnership to move towards green jobs.

5.7.4 The German government was willing to assist the South African post school education and training system through its partnership and development initiatives.

 

5.8        Handswerkskammer Klobenz / Chamber of Skilled Crafts

5.8.1 The training facility had a high level type of training for apprentices who met the standards required by the industry as well as the federal state.

5.8.2 The equipment at the facility included the latest technology utilized by its member industries. The machinery used to train the apprentices was mostly donated by industries (industry driven initiative).

5.8.3 In South Africa, unlike Germany, the main challenge was the lack of willingness in many companies to train and develop young people.

5.8.4 FET college lecturers would benefit being trained at this facility since it was willing to assist South Africa to improve its capacity in skills development.

 

5.9        Bundesinstitut fur Berufsbildung (BiBB) / Federal Institute for Vocational Training and International Marketing for Vocational Training (iMove)

5.9.1 The BiBB was an international institution of research and development in the VET system and it was also responsible for the development of the curriculum of the VET system.

5.9.2 The VET system was market driven and most of the funds for the training and development of students were contributed by companies.

5.9.3 The BiBB advised the delegation that skills development policies in South Africa should be aligned to economic policies to reduce unemployment.

5.9.4 Investment in research and development for the VET system curriculum contributed to its success.

5.9.5 The iMove was responsible for marketing the VET system internationally and its market strategy was very successful in obtaining foreign partnerships.

5.9.6 Improvement of productivity and increase in exports could be attributed to the success of the VET system.

5.9.7 Germany was the second country after China to be the largest exporter to foreign countries.

 

6.         Site Observations

The Portfolio Committee on Higher Education and Training having conducted site observations to various training facilities noted the following key issues:

 

6.1        Siemens

6.1.1 The training centre offered both theory and practical learning for the trainees.

6.1.2 The majority of students in the training programme expressed their happiness with their choice of career.

6.1.3 The machinery used by students included the latest technology on the market for mechatronics.

6.1.4 Students were mostly trained by problem solving in various electronic devices produced by the company.

 

6.2        Handswerkskammer Klobenz / Chamber of Skilled Crafts

6.2.1 Trainees were offered theory and practicals located in the same venue, which made training easier for them.

6.2.2 The electro mechanical workshop included the latest cars donated by large car manufacturing companies such as Mercedes Benz, Bavarian Motor Works (BMW) and Volkswagen. The trainees were likely to be absorbed by those companies upon completion of exams.

6.2.3 The welding workshop was well coordinated and specifically trained young people for high level welding. A good welder in Germany could earn a higher salary than an engineer owing to the importance of their work and the large utilization of steel for the manufacturing of cars.

6.2.4 The automation workshop was responsible for training students who had an interest in air conditioning technology. Heating and cooling technology was very popular in Germany owing to its climatic conditions.

6.2.5 The Solar power laboratory was responsible for the development of green energy. Trainees were taught how to build solar power systems as well as fitting them in houses. The solar power systems had a lifespan of 25 years and were very sustainable.

 

7.         Conclusion

The seven days international study tour to the Federal Republic of Germany was a success for the Committee. The objective of the visit was to obtain insight on the structure and development of the skills development and post schooling education system, which was achieved. The delegation visited federal institutes such as the South African Embassy, the German Parliament, the Federal Ministry of Education and Research, the Federal Ministry for Economic Cooperation and Development and the Federal Institute for Vocational Training. In terms of industries and training institutions, the delegation visited Siemens, the Chamber of Skilled Crafts, bfw, Humboldt University, and the Confederation of German Trade Unions.

 

The meetings with the federal institutes provided an opportunity for the delegation to strengthen the partnerships between South Africa and Germany especially in higher education and training matters. The German Year of Science 2012 which will be launched in April 2012 was one among many outstanding examples of the German Federal Government’s Strategy for the Internationalization of Science and Research carried out together with a strategically important partner country and, focused on research, education and innovation. The Committee was invited by the German government to be part of the launch of this event in April 2012. The South African – German Development will launch the new Green Skills programme in early 2012 which would assist the country in developing its Green Skills programme.

 

The visits to various industries and training institutions responsible for vocational training provided the delegation with an opportunity to observe the dual education system on site. The visit to Siemens, the largest telemobile company in Germany, offered an opportunity for the delegation to engage with students and observe their practical work. The majority of the students acknowledged that the VET system was a good career choice owing to its advantages. The visit to the Humboldt University, the only university visited during the study tour, gave insight into the higher education landscape of Germany. The delegation was amazed that even Germany had a similar challenge of drop out rate in universities. The proportion of students who went to the university was very low compared with students who took the VET route.

 

The role played by small, private training providers proved to be very effective in addressing the challenge of unemployment. The visit to the bfw, a small private training institution gave an insight into the role of small, private training institutions in skills development. The bwf operated successfully with the limited resources it possessed. Unemployed people and even those with no formal schooling were trained and assisted in obtaining employment.

 

8.         Recommendations

 

The following formed part of the recommendations:

* To eliminate the problem of mismatch between what the training institutions produce and the needs of industry / labour market, the vocational education and training curriculum should be developed in partnership with stakeholders (The Department of HET, FET Colleges, industry, regulatory bodies etc.).

 

* The Department, in partnership with FET Colleges and the industry should constantly review the vocational education and training programmes for the purpose of modernization in order to make them fit for their purpose (relevant and responsive to the needs of the labour market / requirements of the economy).

 

* The Department should consider developing assessments and standards for all vocational education and training programmes to promote the same level of quality provisions in all training institutions (including private providers, companies, and state-owned parastatals) in order to dispense with the disparities of the quality of training offered by different institutions and organizations. For example, an artisan graduate trained by Transnet should be at the same level of skills and competency with a graduate from an FET College or SETA.

 

* If the goal is to produce a highly specialized and competent graduate, the Department should consider extending the duration of training in leanerships programmes so that student may obtain comprehensive training.

 

* Realizing that companies are not investing in practical training as they may regard their contributions to training as paying a levy, the Department should consider passing legislation that will compel companies to be involved in training since they also benefit from a skilled and competent workforce.

 

* Given that 57 percent of FET lecturers are unqualified, the Department should, as a matter of urgency, facilitate the development of a qualification for FET lecturers in partnership with South African Qualifications Authority and higher education institutions. There is also a need for the development of an in-service training programme for the lecturers who are already in the system such as the National Professional Diploma in Education (NPDE) offered to unqualified and under-qualified teachers to improve their skills and competencies.

 

* The Departments of Higher Education and Basic Education should review the alternative educational paths after compulsory education (Grade 9) since the current model channels most learners into a uniform academic stream only (Matric). It only favours those who successfully complete Matric and discards those who do not. If different streams of secondary education could be introduced, for example, initial vocational education (dual system) in different fields, learners will complete their secondary education with a certificate and skills and competencies which will immediately enable them to join the labour market. This will go a long way towards eliminating the challenge of a high dropout rate and a situation whereby learners complete their matric and return to enroll in FET programmes that are lower qualifications than they have already obtained.

 

* The Department should develop the Further Education and Training (FET) colleges to increase the number of artisans produced for industries. More investment in latest industrial equipment used in industries should be made accessible to learners in FET colleges.

 

* Given the fact that most student who completed their theoretical training in FET colleges and Universities of Technology struggled to obtain workplace learning, the Department should consider legislation that would make it compulsory for well established companies to take students for experiential learning to address the challenge of unemployment among young people.

 

* The occupational programmes offered by FET colleges should be aligned with industry needs, and there should be a strong partnership between industries and FET colleges.

 

* The Department should use the opportunity offered by the Chamber of Skilled Crafts in offering South African lecturers training in highly technical machinery and equipment.

 

* The Department should develop an effective and efficient tracer system to track all students in the post school education system.

* The higher education and training institutions should consider developing programmes aimed at improving Green Skills for the economy.

 

* The partnership between Humboldt University and Universities of Stellenbosch and Cape Town should be expanded to include the previously disadvantaged institutions.

 

Report to be considered

 

2.         Report of the Portfolio Committee on Public Works on the oversight visit to Mpumalanga, 24 – 26 January 2011, dated 15 February 2011

 

1. Introduction

 

A multi-party delegation of the Portfolio Committee on Public Works (the Committee) conducted an oversight visit to the province of Mpumalanga on 24 – 26 January 2011.

 

The delegation consisted of the following members:

Hon M C Mabuza (ANC) (Chairperson and leader of the delegation),

Hon C D Kekana (ANC),

Hon N M Madlala (ANC),

Hon N E Magubane (ANC),

Hon N D Ngcengwane (ANC),

Hon N T November (ANC),

Hon M W Rabotapi (DA),

Hon L Gaehler (UDM),

Hon P B Mnguni (COPE), and

Hon K P Sithole (IFP).

 

The following parliamentary support staff accompanied the delegation:

Ms A Busakwe (Committee Secretary),

Ms V Makubalo (Committee Assistant), and

Ms I Stephney (Committee Researcher).

 

2.         Objective

 

The overall objective of the oversight visit was to exercise oversight over the national Department of Public Works, specifically with regard to the performance of the Expanded Public Works Programme (phase II), roll out of the Government Immovable Asset Management Act (GIAMA) in the province of Mpumalanga and progress made by the department at the Lebombo border post.

 

3.         Summary

 

The oversight visit took place from 24 to 26 January 2011. Over the three-day period, the Committee received briefings from the national Department of Public Works, provincial Department of Public Works, Ehlanzeni district municipality, Umjindi and Nkomazi local municipalities. The focus of the visit was on the work done by the national Department of Public Works at the Lebombo border post, on the roll-out of EPWP II and the roll-out of GIAMA in the Mpumalanga province.

 

The Committee found that:

 

1.         There were ongoing challenges around the management of the Lebombo border post which needed the attention of all stakeholders concerned. The new building structure at the border post remained incomplete with major structural components that needed completion before the building could be handed over to all client departments for occupation. These included the installation of counters, the completion of the ablution facilities and the installation of hard drive portals.

 

2.         The Mpumalanga province needed to improve on the adherence to the EPWP II guidelines. The national Department of Public Works needed to provide technical support to the municipalities in the province.

 

3.         With regard to the roll-out of GIAMA, the province and the municipalities were still struggling with the identification, vesting and registration of state assets. The Committee recommended that the national Department of Public Works should focus on assisting provinces by providing all the necessary resources to register their assets. A decision was taken that Mpumalanga should be identified as a pilot project in the collective effort of focusing all resources in that province and in assisting it in every way possible towards the compilation and completion of its asset register.

 

4.         Presentations

 

The following information was reported to the Committee:

 

4.1        Status of the Lebombo Border Post

 

In January 2009, a phased approach was adopted for the construction of facilities for the Lebombo one-stop border post. The Department of Public Works prepared a design which provided the minimum facilities necessary to make a significant difference to the situation that was at the Lebombo border post. Phase 1 included the maximum use of existing facilities with minimum additional construction as the remaining phases could take several years before they could be completed.

 

There was a proposal to create new flat portions of the site that were going to create bypasses to prevent traffic bottlenecks at the border. The land adjacent to these bypasses was going to be used to construct buildings that may be needed in the future. The main aim was to address the challenge of slow service delivery due to traffic congestion and also further address slow service delivery due to limited counter space.

 

Additional accommodation for office administrative staff was provided in temporal prefabricated structures at Komatipoort (4 kilometers away from the border post). These were built from a budget of R22 million. The offices in Komatipoort were going to further reduce inefficient service delivery as a result of inadequate parking at the border post. Additional space and facilities that were still going to be built were going to reduce inefficiencies, intermittent searching and control procedures resulting in loss of revenue.

 

Phase 1 Project – South African side of the border:

 

The plan included separation of the pedestrian and motor vehicle traffic to enable the control officials to ease congestion at the border. A new pedestrian facility for the processing of border control formalities for both South Africa and Mozambique was constructed.

 

The Committee noted with concern the dirty state of the border post, the need for a legal taxi rank, hawker stalls and a need for more appealing signage on the South African side of the border post.

Phase 1 Project – Mozambique side of the border:

 

The information on the Mozambique side of the border is based on what was reported to the Committee by the Department of Public Works as the Committee did not verify the reported information and could only verify what was on the South African side of the border.

 

Mozambique refurbished an existing building to serve as a pedestrian clearance facility. The building was completed and was reported to be ready for occupation. The following additional items that were requested by the client for security purposes were still to be provided by variation order, at an estimated cost of approximately R2 million:

 

- Channeling fence to separate arrivals and departures on the South African side

- Air conditioning in the Mozambican server room

- Roofing to access culvert

- Paving of the pedestrian pathway at the borderline at access culvert leading to the  

  Mozambican Pedestrian Building

- Securing of window at the server room of Mozambique

- Securing of the office to be occupied by SAPS and installation of one way glass

- Construction of storm water drains on the Mozambican side of the building

- Provision of shelves and counters for the Vat Refund area

- Additional aluminium doors to prevent pedestrian crossing.

 

Office Accommodation:

 

Existing residential accommodation were converted into office space for all Border Control Operational Coordinating Committee (BCOCC) Government Departments. Some of the offices were already occupied at the time of the visit. The following additional work still had to be executed as requested by the client:

 

- Landscaping

- Burglar bars

- Paraplegic ramps

- Conversions to paraplegic toilets.

 

The plans included that freight coming from South Africa will be processed by all relevant BCOCC Government Departments at the freight facility. Additional parking, canopies, fencing and the upgrading of the sewer system were being completed and were ready for utilisation. South African Revenue Services (SARS) proceeded to reconfigure the Customs Warehouse at KM 7 (freight) for the clearance of commercial traffic. Refurbishment of the existing main building was going to include a new roof and air conditioning system. All boom gates were going to be fitted with spikes.

 

Phase one would not allow for the successful resolution of all the problems of traffic bottlenecks and would not fully resolve the freight processing problems. The rail processing was going to maintain the situation that was happening at the time of the visit. Targeting areas were under-provided and were going to operate much the same way as they did at the time of the oversight visit.

 

There was a plan in place for what was termed as a future phase. The future phase was going to include, further office accommodation particularly the police services and an administration centre for the two countries. The phase that was already constructed could only cater for the expected traffic growth for a few years and was going to require upgrading no later than 2016.

 

Presentation by the Border Control Operational Coordinating Committee (BCOCC):

 

The BCOCC was comprised of the following provincial member departments: SARS, South African Police Service (SAPS), Department of Home Affairs, Department of Agriculture, Forestry and Fisheries, Department of Health, National Intelligence Agency, Department of Public Works, Roads and Transport, Department of Tourism, South African National Defence Force and the Department of Transport.

 

The BCOCC indicated that there were staffing challenges at the Lebombo border post, accommodation was needed for hawkers, relocation of the existing illegal taxi rank and residence accommodation was also needed.

 

4.2        Status of the Expanded Public Works Programme in Mpumalanga Province

 

Mpumalanga EPWP II performance for the period 1 April 2009 – March 2010:

 

The overall provincial summary in all EPWP sectors reflected that the province had 1 726 projects with a total budget of R2, 477,531,993. The total expenditure from this budget was R813,618,076. An average minimum daily wage was R70 though the daily wage differed per sector. For example, in the Environment and Culture sector, the daily wage was R66. In the Infrastructure sector it was R 65. In the Non-State sector it was R47 and in the Social sector it was R71, 00. 43, 549 work opportunities were create with a total number of 1, 498, 565 person days of work.

Overall work opportunities per sector and sphere were as follows:

 

Environment and Culture created 186 work opportunities at municipality level, 2 667 at national and 698 at provincial level. They all added up to 3 551 work opportunities.

 

Infrastructure: 3 373 at municipality level, 145 at national, 4 449 at provincial and an overall total of 7 967 work opportunities.

 

Non-State: Nil at municipality level, 10 765 at national, nil at provincial and an overall total of 10 765 work opportunities.

 

Social: Nil at municipality level, 6 399 at national, 14 867 at provincial and an overall total of 21 266 work opportunities.

 

Work opportunities per designated group, were reported as follows:

 

Environment and Culture: 44% of youth, 30% of women and 0.93% of people living with disabilities.

 

Infrastructure: 44% of youth, 49% of women and 0.59% of people living with disabilities.

 

Non-State: 42% of youth, 45% of women and 0.03% of people living with disabilities.

 

Social: 22% of youth, 50% of women and 0.23% of people living with disabilities.

 

Total: 32% of youth, 47% of women and 0.30% of people living with disabilities.

The above information was reported to the Committee without any proof provided as the Department failed to prove the credibility of the information with supporting documentation.

 

Provincial Steering Committees:

 

The Provincial Steering Committee (PSC) held quarterly meetings. The infrastructure, social, environment and non-state sectors held monthly meetings. Enterprise and training meetings were ad hoc in the province. The independent Development Trust (IDT) was the key driver of the non-state sector in the province. The provincial Department of Public Works, Roads and Transport was the overall coordinator in the province. Regional offices of the national Department of Public Works provided technical support for overall coordinating and implementing bodies. The following sector departments played a key role: for example the infrastructure sector was led by Public Works, Roads and Transport. The social sector was led by the departments of Health and Social Services. The environment sector was led by the Department of Agriculture and Rural Development and the non-state sector was led by the IDT.

 

Mpumalanga Incentive Grant:

 

- The province received incentive payments on the work done by the infrastructure provincial departments for the period April 2009 to March 2010. The following client departments received incentive payments: Housing, Education, Health & Social Services and Roads & Transport.

- The infrastructure municipalities received incentive payments from the period April 2009 to March 2010. The following municipalities claimed their incentive payments: Pixley ka Seme, Govan Mbeki, Gert Sibande, Emalahleni, Dr J S Moroka, Nkangala District, Mbombela, Umjindi and Bushbuckridge.

Progress and Achievements:

 

Mpumalanga held its First Provincial Kamoso Awards in October 2010. Site visits to projects across the province were conducted randomly to verify quality and existence. A workshop was held between the national Department of Public Works and provincial Department of Roads, Transport and Public Works to improve intergovernmental relations and EPWP reporting. All eligible municipalities signed Incentive agreements with the national Department of Public Works. Mpumalanga hosted the national launch of the EPWP non-state sector at Bushbuckridge in May 2010. The social sector incentive business plan was in the process of being finalised and funds were transferred to relevant departments in the province. Five hundred and seventy youth learnerships were identified for funding under the strategic fund and the Safety and Security Sector Education and Training Authority (SASSETA). The National Youth Service (NYS) workshop was conducted to identify exit opportunities for exiting learners from the programme and 61 NYS learners would be recruited by the NDPW on two projects. Six NYS learners were placed in formal work (one at Emalahleni municipality, one at Lydenburg mine and four at WRAP SA).

 

Challenges:

 

- Lack of inadequate technical capacity in the programme management unit (PMU) at

  local government level.

- Poor quality of data reported by both municipalities and provincial departments.

- Under reporting on EPWP II projects.

- Inadequate data capturing capacity.

- Municipal protocol agreements were not signed by municipalities following the  

  agreement that was taken at the first EPWP summit in Durban 2010.

- Visibility of EPWP projects needed to be improved.

 

Interventions:

 

- There were plans to target the executive heads of the departments to sign the

  municipal protocols by the 1 February 2011.

- Training was going to be conducted in June, September and November 2011 for the

 department officials and data captures on the two reporting systems that were used for   

 EPWP II reporting.

- National Department of Public Works appointed dedicated capacity to assist public

 bodies on technical issues.

- The Department of Public Works and the Local Government Sector Education &

 Training Authority LG SETA planned to train municipal officials on NQF 5 and 7.

 

Provincial Department of Public Works Projects:

 

Matsafeni Primary School:

 

- The project was under the Sakhabakhi programme of the Department.

- The duration of the project was from 29 November 2010 to 30 January 2011.

- Total budget for the project was R1 974,161.58 which had a total expenditure of R 543,760.78 at the time of the visit.

- The daily wage rate that was given to beneficiaries was R70.

- A total of 24 work opportunities were created, 7 women, 18 youth and no persons with disabilities.

- The aim of the project was to renovate 16 dilapidated classrooms and 13 toilets at the school.

- No training was provided due to time constraints.

 

Chief Makunyula Primary School:

 

- The project was under the Sakhabakhi programme of the Department.

- The duration of the project was from 29 November 2010 to 30 January 2011.

- Total budget of the project was R1 532,132.20 which had a total expenditure of R 482,409.69 at the time of the visit.

- The daily wage rate that was given to beneficiaries was R70

- A total of 18 work opportunities were created, 6 women, 12 youth and no disabled persons.

- The aim of the project was to renovate 16 dilapidated classrooms, make classrooms habitable, create a conducive learning environment and encourage learners to attend school in all weather conditions.

- No training had been conducted for the labourers and though there was a need for training, time did not allow for training since the project lasted for only two months.

 

4.2.1 Expanded Public Works Programme in Ehlanzeni District Municipality

 

The Ehlanzeni district municipality presented on six of its EPWP II projects, as follows:

 

4.2.1.1 Bushbuckridge Tourist Information Centre:

 

- The project entailed the construction of a centre that was meant to accommodate tourist operators, a trading area, coffee shop, an internet facility and offices.

- The project started on 9 July 2009 and finished on 10 September 2010.

- The annual budget of the project was R3,500,000.

- The project created a maximum of 24 work opportunities, with 12 youth, 5 women and1 disabled person.

- Nine people received training in bricklaying, 3 in electricity installation, 4 in plumbing, 1 in carpentry, 4 in tiling and glazing and 24 in occupational health and safety. 

- The purpose of the project was to provide an information facility that would maintain a database of tourist products and expose the local community to abundant tourism opportunities.

 

4.2.1.2 Balule – Satara bulk water supply pipeline:

 

- The project entailed the removal of the old corroded steel pipeline and the installation of a new 38 km unplasticised polyvinyl chloride (uPVC) pipeline inclusive of valves and special fittings.

- The purpose of the project was to supply water from Balule water treatment works to Satara camp site in the Kruger National Park.

- The project duration was from 23 November 2009 to 30 June 2010 (32 weeks).

- Twenty three work opportunities were created: 70% youth, 30% women and no disabled persons.

- Training was provided to 23 people in labour intensive construction, 12 in pipe laying, 5 in back filling, 6 in pipe fitting and 23 in occupational health & safety.

 

4.2.1.3 Phabeni – Pretoriuskop Bulk Water Supply:

 

- The purpose of the project was to supply water from Phabeni water treatment works to Pretoriuskop camp site in the Kruger National Park.

- The budget of the project was R850,000.

- The project duration was from 23 November 2009 to 30 September 2010 (48 weeks).

- The project aim was to remove the old corroded steel pipeline, install new steel pipes in two river crossings and install a new 600m uPVC pipeline inclusive of valves and special fittings.

- Six work opportunities were created in bricklaying, administration and welding.

- Training was provided as follows: nine in labour intensive construction, one in bricklaying, two in welding, two in pipe laying, two in back filling, two in pipe fitting and nine in occupational health & safety.

- Eleven per cent of people employed were youth, 22% women and no disabled people.

 

4.2.1.4 Upgrading of Kanyamazane Stadium:

 

- The purpose of the project was to provide FIFA with a training venue as a guarantee for the 2010 World Cup.

- The project was for the upgrading of the building works inclusive of: VIP building, caretaker flat, spectator toilets, change rooms and gate booths. Storm water reticulation, training pitch and pitch fencing, electrical works and field lighting and erection of grandstand.

- The project duration was from 19 June 2009 to 20 May 2010 (49 weeks).

- The project budget was R21,000,000.

- Thirty two labourers were employed in bricklaying, administration and in carpentry.

- Training was provided as follows: 11 in bricklaying, 2 in welding, 5 in pitch laying, 6 in electricity installation and lightning, 4 in plumbing, 1 in carpentry, 6 in paving, 8 in tiling, 4 in glazing and 47 in occupational health & safety.

 

4.2.1.5 Upgrading of Kabokweni Stadium:

 

- The purpose of the project was to provide FIFA with a training venue as a guarantee for the 2010 World Cup.

- The budget for the project was R31,000,000.

- The project duration was from 19 June 2009 to 20 May 2010 (49 weeks).

- Project description: Pitch works including pitch barrier fence, civil works including paving and aggregate surface, building works, i.e. change rooms and ablution block including tunnel and main entrance, Stadium lights, remedial works to boundary wall, reinstating of the athletics track and supply of domestic water and irrigation tanks.

- Fifty nine labourers were employed on the project, including eight in bricklaying, three in administration and two in carpentry.

- Training was provided as follows: 11 in bricklaying, 3 in welding, 7 in pitch laying, 6 in electricity installation and lighting, 5 in plumbing, 2 in carpentry, 16 in paving, 12 in tiling, 7 in glazing and 72 in occupational health & safety.

 

4.2.1.6 Fan Park (Bergvlam High School):

 

- The purpose of the project was to prepare the fan park for 2010 FIFA Soccer World Cup Tournament.

- The budget for the project was R20,000,000.

- The project duration was from 19 June 2009 to 20 May 2010 (49 weeks).

- Project description: demolition work, pilling, construction of ablution block, construction of pavilion and grandstand, roof covering pavilion steel structure, external site work and building work.

- Twenty seven labourers were employed, including five in bricklaying, two in administration and one in carpentry.

- Project beneficiaries were 69% youth, 17% women and no persons with disabilities.

- Training was provided as follows: 11 in bricklaying, 3 in welding, 6 in electricity installation and lightning, 3 in plumbing, 1 in carpentry, 6 in paving, 3 in tiling and glazing and 35 in occupational health & safety.

 

4.2.2 Expanded Public Works Programme in Umjindi Local Municipality

 

The Umjindi area had a high rate of unemployment due to the demographic profile which combined both rural and urban areas. The majority of people were earning below the poverty level. In 2007, the unemployment rate of the people of Umjindi was 41.2%. In 2008, it dropped slightly by 0.1%. The Umjindi local municipality was placed under administration a day before the visit of the Committee.

 

MIG Projects of Umjindi local municipality which were implemented focusing on EPWP requirement:

 

Roads and Storm Water Phase 3:

 

- The project cost was R6,000,000 but the available budget was R3,879,539.67.

- The objective of the project was to control water flow during the rainy season and minimise flooding in residential areas.

- The project duration was six months, from 13 September 2010 to 13 April 2011.

- Since the project started, it created 20 work opportunities.

- The project employed three adult males, four adult females, six male youth, seven female youth and no persons with disabilities.

- The number of people employed was expected to increase at the stage of installation of kerbs and the construction of concrete v-drains.

- The project was behind schedule due to rainfall.

- Total expenditure at the time of the visit was at 30.31% (R1,176,051.95).

- Training conducted focused on technical skills transfer and social issues, technical training on concrete work, kerb laying, social issues  and AIDS awareness courses.

 

Water – Replacement of AC Pipes with uPVC Phase 3:

 

- The total project cost was R8,423,680.

- The objective of the project was to reduce the water loss by replacing all AC pipes with uPVC.

- The project duration was eight months, from19 July 2010 to 25 February 2011.

- The project created 54 work opportunities for local people.

- Eighteen adult males, four females and 32 male youth were employed on the project.

- During the project implementation there was no training conducted by service providers due to insufficient funds.

- The contractor did provide training to local labourers e.g. health and safety in construction industry.

- The amount paid to labourers was approximately R786,000.

- Total expenditure at the time of the visit was 100%.

- The project was successfully completed within six months.

 

EPWP incentive grant allocation was R167,000 and was increased due to the performance of the municipality to the amount of R260,000:

 

- Two local emerging contractors were appointed.

- The budget was divided into two various projects which were grass cutting and storm water cleaning.

 

Grass cutting project:

 

- Total project allocation for grass cutting was R125,000.

- Total expenditure at the time of the visit was R75,000.

- The project started on 1 October 2010.

- The project created temporary work opportunities for about eight people for a period of three months.

- People employed were one adult male, one adult female, three male youth, three female youth and no persons with disabilities.

 

Storm Water Cleaning:

 

- The objective of the project was for the cleaning of the storm water drainage and to improve the flow of water during the rainy season.

- Total project allocation was R125,000.

- Total expenditure at the time of the visit was R64,912.28.

- The project started on 1 October 2010.

- Since the project started it created 16 temporary work opportunities.

- The allocated budget for training was R10,000.

- A service provider was appointed to conduct training on health and safety issues.

- Total expenditure at the time of the visit was R10,000.

 

4.2.3 Expanded Public Works Programme in Nkomazi Local Municipality

 

- The Nkomazi local municipality had a population of about 515,465 people with 100, 722 households in terms of the reviewed 2010 Water Services Development Plan (WSDP).

- The municipality was 80% rural. It was operating 18 water treatment schemes that supply 95% of the people with water.

- The municipality used mobile water tankers to supply water to some of the communities as an intervention due to the fact that some of the water services infrastructure were still under planning/development.

- Nkomazi municipality implemented the following capital projects to ensure sustainable water supply to the community: Nyathi Water Treatment Works and Masibekela Water Treatment Works.

- In this municipality it was reported that the foreigners outnumbered the locals.

 

4.3 Status of the Asset Register in Mpumalanga Province

 

- The province comprised four previous homelands.

- The state properties in the province were recorded in the asset register at cost rate and not at market value.

- The Department was busy with condition assessment of properties and not much was done as they were lagging behind in this area. The CSIR was also assisting with the assessment of properties.

- The Department reported that it had numerous vacancies.

- The Department indicated that there was a challenge of unknown properties that possibly belonged to government.

 

4.3.1 Asset Registration in Ehlanzeni District Municipality

 

The asset register of Ehlanzeni district municipality contained a record of information for every asset that provided support to the effective financial and technical management of the institution and met statutory requirements i.e. Municipal Finance Management Act (MFMA), Generally Recognised Accounting Practices (GRAP); as well as Ehlanzeni district municipality’s asset management policy.

The municipality categorised its assets into capital and minor assets. Capital assets were classified as those assets that had a life cycle greater than one year and minor assets were those assets other than capital assets which were fully depreciated in the year of existence.

 

The Ehlanzeni district municipality did not have any infrastructure assets as these assets were with the local municipalities. The district implemented infrastructure projects on behalf of the local municipalities and therefore those assets were in the asset registers of the municipalities.

 

4.3.2 Asset Register in Umjindi Local Municipality

 

- The municipality was governed by the council policies in the management of its asset register, the supply chain management policy: s40 (1) and (2) which provided for the criteria for the disposal or letting of assets, including unserviceable, redundant or obsolete assets, subject to sections 14 and 90 of the MFMA (Act 56 of 2003), Infrastructure Asset Management Policy, Movable Asset Management Policy and Asset Disposal Policies were followed.

- The asset register of the municipality was divided into infrastructure assets and community assets.

- Under the infrastructure assets, the municipality recorded its caravan parks, hostel (public & tourist), market stalls, office buildings, old age homes, workshops and depots.

- In September 2008 the municipality and the provincial Department of Health entered into a Memorandum of Agreement for the transfer of assets. This process was taken through a disposal committee, and subsequently to management.

- The municipality had a challenge of being understaffed in the Asset Register Unit and subsequently made use of consultants.

 

Plans to address the identified challenges:

- The municipality employed an experienced senior accountant who was responsible for preparing financial statements and asset management activities.

- The municipality established a risk management division (August 2010) and it was assisting the asset management unit in identifying asset management’s control weaknesses and thereafter designing detecting and preventative controls aimed at ensuring that the municipality’s assets were well managed and accounted for.

- Asset reconciliations were going to be performed on a monthly basis. This was going to assist in ensuring that additions at year-end as per the asset register agreed with the general ledger.

- The municipality was considering alternatives on how to deal with the old assets for which there were no maps and records.

 

4.3.3 Asset Register in Nkomazi Local Municipality

 

In order to account and ensure that the municipality’s land, buildings and other immovable properties were reliably used at all times, the municipality complied with the requirements of section 96(2)(b) of the Municipal Finance Management Act, which requires the Accounting Officer to take all reasonable steps to ensure that the municipality has and maintains a system of internal control of assets and liabilities, including an asset register. The institution drafted and implemented an asset management policy as a tool to monitoring asset management’s activities.

 

The municipality’s asset register was categorised as follows: land and buildings, roads, electricity, water and sewer infrastructure, waste disposal equipment, machinery and equipment, furniture and office equipment, computer equipment, transport assets, heritage assets, biological assets and investment assets.

 

The Nkomazi municipality undertook a study tour to the Netherlands where they discovered a tool used for identifying underground pipes.

The municipality was facing the following challenges with regard to assets:

 

- The Auditor-General of South Africa raised the following issues related to immovable property during the 2009/10 audit:

- The existence, rights, completeness and valuation of infrastructure assets as disclosed in the financial statements could not be established.

- Additions to property, plant and equipment disclosed in the financial statements did not agree with the amount reflected in the asset register.

- The system that was used for asset management (e-venus) was not integrated with the financial system; hence it was difficult to reconcile the asset register to the general ledger or correctly calculate depreciation.

- The municipality did not have enough funds to procure asset management software which supported GRAP 17 compliant information.

 

Challenges regarding assets:

- The asset management unit was understaffed and had only two officials who were responsible for a large number of assets with a total cost of R735,064,923.

- Fully depreciated assets were still being used by the municipality.

- Numerous infrastructural assets were transferred from the former Transitional Local Councils (TLCs) when they were consolidated into Nkomazi local municipality.

- These assets were not physically verified to ascertain their existence or location. For example, maps for underground pipes were not provided and as a result the municipality was unable to detect all the underground pipes and correctly add them to the asset register.

- The municipality did not have enough capacity to scan the underground pipes and draft the required maps.

 

5.         Recommendations

 

- The Committee made a recommendation to the Nkomazi municipality to ensure that the Lebombo border post is kept clean.

- The Committee recommended that ablution and water facilities should be included in the small structure at the Lebombo border post to stop the situation of officials that had to walk a distance of 200 meters to a building that had water and ablution facilities.

- The Committee asked the national Department of Public Works to find out who was the rightful owner of the land where the Lebombo border post was situated as the uncertainty brought about a negative impact on development.

- The national Department of Public Works should follow up on the issue of state land in the province that was leased at ridiculously low prices.

- The national Department of Public Works should hold a joint meeting with all the other client departments involved in the operation of the Lebombo border post and attend to management issues.

- Municipalities were advised on having proper disposal policies and ways of identifying municipal assets in line with section 14 of the Municipal Finance Management Act.

- The local municipalities were advised to have proper working relations with the tribal authorities for easy management of their municipalities, especially on the issue of rates and taxes.

- The national Department of Public Works was advised to provide technical training to the municipalities on the roll-out of the EPWP II. The data capturers employed by the national Department of Public Works should be deployed in each of the provinces.

- The national Department of Public Works was advised to assist the Mpumalanga province in the compilation of its asset register.

- The Committee recommended that the Nkomazi local municipality together with its traditional authorities should attend to the report which was provided by the municipality itself on the state of the municipality in relation to the huge inflow of illegal immigrants into the Nkomazi local municipal area. In some of the villages, it was reported that the illegal immigrants outnumbered the South African citizens and in some areas there were illegal connections of water, electricity and the allocation of sites for money by the Induna’s.

- The Committee recommended that the Department of Co-operative Governance and Traditional Affairs should strengthen relations between municipalities and the amakhosi. Relations should also be strengthened among the Departments of Health, Police, Defence and Military Veterans and that of Co-operative Governance and Traditional Affairs.

- The Committee recommended that the national Department of Public Works and the provincial Department of Public Works should form strong relations with the Construction Industry Development Board (CIDB) and that adherence to EPWP II guidelines should also be taken seriously.

- The Committee recommended that the provincial Department of Public Works, Roads and Transport should have a clear plan on the maintenance of roads.

- The Committee recommended that the vacant positions in the Asset Registration Units of the provincial Department of Public Works should be filled.

- At the Lebombo border post, the national Department of Public Works should ensure that there were stalls for hawkers and a legal taxi rank.

 

Report to be considered.

 

TUESDAY, 28 FEBRUARY 2012

 

ANNOUNCEMENTS

 

National Assembly and National Council of Provinces

 

The Speaker and the Chairperson

 

1.         Draft Bills submitted in terms of Joint Rule 159

 

(1)        South African Police Service Amendment Bill, submitted by the Minister of Police.

 

 Referred to the Portfolio Committee on Police and the Select Committee on Security and Constitutional Development.

National Assembly

 

The Speaker

 

(1) Withdrawal of private member’s legislative proposal

 

(a) A letter dated 23 February 2012 has been received from Ms L D Mazibuko, withdrawing her legislative proposal to introduce measures to ensure full individual security of tenure for people living under communal land tenure that was tabled on 16 November 2011.

Referred to the Committee on Private Members’ Legislative Proposals and Special Petitions.

 

TABLINGS

 

National Assembly

 

1.         The Speaker

 

(a)        Report of the Public Service Commission (PSC) on the Evaluation of Grievances to Identify Good Practices - July 2011 [RP 203-2011].

 

(b)        Report of the Public Service Commission (PSC) on Financial Misconduct for 2009-2010 Financial Year [RP 202-2011].

 

(c)        Report of the Public Service Commission (PSC) on the Assessment of the Human Resource Development Practices in the Public Service – June 2011 [RP 268-2011].

 

COMMITTEE REPORTS

 

National Assembly

 

1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON ITS MEETING WITH THE CAPE PENINSULA UNIVERSITY OF TECHNOLOGY DATED 22 FEBRUARY 2012

The Portfolio Committee on Higher Education and Training, having convened a special meeting with the Cape Peninsula University of Technology (CPUT) on 01 February 2012 reports as follows:

 

1.         Introduction

 

The Portfolio Committee on Higher Education and Training convened a special meeting with CPUT management at the Bellville Campus on 01 February 2012. The meeting was arranged with the specific purpose of engaging on the issues of registration and enrolments and fee increment in 2012.

 

2.         Background

 

The CPUT was one of the four higher education institutions located in the Western Cape. It was the only university of technology in the province with others being traditional universities. The main campus was located in Bellville and additional campuses were located in Cape Town, Mowbray, Wellington and Granger Bay.

The CPUT offered various undergraduate and postgraduate qualifications such as the national certificate, national higher certificate, national diplomas, B Tech programmes, M Tech programmes and D Tech programmes. In particular, the institution was focusing on offering programmes in engineering sciences, marine sciences, and medical science.

 

As part of its effective oversight and monitoring of higher education and training institutions, the Committee convened a special meeting with the senior management and student leadership of CPUT on 01 February 2012. The main objective of the meeting was to obtain an insight into the enrolment and registration process for the 2012 academic year in the institution. In addition, the Committee wanted to understand the factors that had led to a mass demonstration by students over the fee increment.

 

3.         Composition of the Delegation

 

3.1        The Parliamentary delegation

The multi-party delegation of the Portfolio Committee on Higher Education and Training comprised of Adv I Malale: Chairperson (ANC), Ms N Gina (ANC), Mr S Makhubele (ANC), Mr C Moni (ANC), Ms W Nelson (ANC), Mr S Radebe (ANC), Dr J Kloppers-Lourens (DA), and Mr A van der Westhuizen (DA).

 

Apologies: Mr A Mpontshane (IFP) and Mr J Dikobo (AZAPO).

 

Support staff: Mr A Kabingesi (Committee Secretary), Ms M Modiba (Researcher), Mr M Lukani: (Communications Officer) and Ms Y Cele (Committee Assistant).

 

3.2        Cape Peninsula University of Technology

 

Management: Prof A Staak: Acting Vice-Chancellor, Dr C Nhlapho: Deputy Vice-Chancellor Research Innovation & Partnership, Mr D Bleazard: Director Management Information System, Mr V van der Linde: Executive Director Finance, Mr N Ntsbaba: Acting Registrar, Ms C Njoli-Motale: Executive Dean Student Affairs, Mr N Jacobs: Director Marketing & Communication.

 

Student Representative Council: Mr W Hanekom: Business Faculty Representative Wellington Campus, Ms M Rorich: Chairperson Wellington Campus, Ms M Koester: Deputy Chairperson Wellington Campus, Mr M Sityoshwana: Chairperson Bellville Campus, Mr O Mazele: Chairperson Cape Town Campus, Mr S Nofemele: President Central SRC, Mr B Ndevu: Treasurer General Central SRC, Mr L Mani: Deputy President Central SRC, Mr L Ngema: Deputy Chairperson Mowbray Campus, Mr S Buso: Residence and Transport Welfare Mowbray Campus, Mr M Gqokoma: Secretary-General Cape Town Campus, Mr M Gogo: Engineering Faculty Representative Bellville Campus and Mr B Ntlebi: Finance & Projects Officer Mowbray Campus.

 

3.3        Department of Higher Education and Training

Dr D Parker: Acting Deputy Director-General University Education.

 

4.         Summary of presentations

4.1        Presentation by the Acting Vice-Chancellor

Prof A Staak: Acting Vice-Chancellor made a short presentation on matters that led to the mass demonstration by students:

* It was noted that the Vice-Chancellor of the institution, Prof S Mazwi-Tanga was on sick leave and was unable to attend the meeting with the Committee; hence Prof Staak was the Acting Vice-Chancellor until further notice.

* On 26 November 2011, the Council of the institution held a meeting to discuss the fee increment for 2012. At the time the meeting was convened, the new Central SRC leadership had not yet been constituted. The meeting was preceded by consultations that took place in April 2011 with student leadership of the institution. However, during the consultation period, the student leadership proposed a zero percentage increase in student fees.

* The institution conducted a benchmarking exercise to determine the fee increment in 2011. In the Council meeting of the 26 November 2012, two leaders of the local SRCs were part of the meeting. The meeting resolved that fees be increased for the 2012 academic year to maintain the financial sustainability of the institution which was currently deteriorating.

* Unfortunately, by the time the decision of the fee increment was taken, the majority of students had left the institution for the holidays. The information regarding fee increment was posted on the institution’s website. Unfortunately, the majority of students only became aware of the fee increment in January during the registration period. On 12 January 2012, a special meeting with the SRC was convened to discuss the fee increment. The students were concerned with the fee increment and demanded that registration be suspended until the dispute was settled. The management refused to suspend registration as it would interfere with the academic calendar of the institution.

* On the first week of registration, there was a small protest by students at the Cape Town Campus and registration was disrupted. The students continued to demand that registration be suspended. Fortunately, there were no disruptions experienced at the Bellville Campus. Security was called to prevent further disruptions, registration proceeded and more than 20 000 students were registered.

* Management had a meeting with the SRC on 25 January 2012 to discuss the upfront payment required for students to register at the institution. The upfront payment required for students was R3400 and R5000 for students staying in residences. The upfront payment was necessary for the institution’s operating expenditures since the allocation from the Department came only in April, at the beginning of the new financial year. The 11% increase in registration fee was sufficient for the sustainability of the institution since operating expenditures of the institution had increased by 87% over the past five years and exceeded its income.

* A major concern of the institution was students who fell outside of the threshold limit of the NSFAS and could not afford to pay their fees. These students owed a huge debt to the institution and were unable to furnish it. Measures were put in place to assist students who could not afford to pay the upfront payment by allowing them to register and pay at a later stage.

 

4.2        CPUT Enrolments 2010 – 2013

Mr D Bleazard: Director Management Information System led the presentation which highlighted the following key issues:

* The objectives of the enrolment plan of the institution included to reflect on the institution’s pass rate and throughput rate, to look at specific study areas earmarked for growth and to relate the targets of the institution’s enrolment history and projections.

* In terms of enrolment targets, student headcounts increased from 30 958 in 2009 to 33 420 in 2013, full time equivalent enrolments increased from 22 690 to 25 064, first time entering undergraduates increased from 8 244 to 9 553. The institution planned to phase out distance enrolments by 2013.

* In terms of graduation targets, an increase from 7 771 in 2009 to 8 521 in 2013 was projected with special focus on scarce skills. The institution targeted 135 Honours, 117 Research Masters and 24 Doctoral graduates by 2013. The proportion of the institution’s contribution to the national scarce skills graduate output in 2014 should be 12% Engineering, 3.4% Initial Teacher Education. 7.6% Animal & Human Health and 3.5% Life & Physical Sciences.

* The success rate for the institution’s FET (Full-Time Equivalent) pass rate should increase from 78.6% in 2009 to 80.1% in 2013. The graduation rate should be 25% in 2013 well above the 20% national average.

* The majority of students were enrolled in Science Engineering & Technology (SET) 50.6%, Business Management 28%, Education 12.4% and Other Humanities 9% for the 2012 academic year.

* The FTE pass rate was 77% in 2011 and it was projected to be 79% in the current academic year. The FTE pass rate per group included; 86% White, 73% African, 80% Coloured, and 77% Indian in 2010.

 

4.3        Application and Registration Process for 2012

Mr N Ntsbaba: Acting Registrar led the presentation which highlighted the following key issues:

* The current process of the 2012 student intake was in operation. The institution used the manual system of application, admission and selection of students. Upfront rejection of students who did not meet the minimum requirements was communicated to students through letters of acceptance.

* The challenges of the institution in terms of registration included the multi-campus environment which delayed the processing of applications, large volumes of applications for limited space, 31 493 applications received for 8 500 spaces, fraudulent certificates and interference by the SRC.

* The recommended action for the 2013 registration included the establishment of an effective online application, automated selection based on pre-set admission criteria, upfront verification of certificates and the elimination of walk-in applicants.

 

4.4        Meeting with the Student Representative Council

Mr M Sityoshwana: Chairperson Bellville Campus, Mr O Mazele: Chairperson Cape Town Campus, Mr S Nofemele: President Central SRC presented on behalf of the SRC:

* The Central SRC had been recently constituted and the mass demonstrations were organised by local SRC’s leadership. The main function of the local SRCs was to deal with daily enquiries of students in various campuses.

* The major challenge of the SRC which led to mass demonstrations by students was the issue of the fee increment. The SRC was not given sufficient time to present the perspective of students on this issue. The SRC leadership was given observer status in the Council meeting of the 26 November 2011 owing to delay tactics by management in establishing a Central SRC.

* The Council meeting agreed on an 11% increase in tuition fees for the 2012 academic year. Unfortunately, students were not informed earlier of the fee increment and only became aware during the registration period.

* A special meeting with the Council and management was requested by the SRC leadership at the beginning of the registration period to discuss the issue of fee increment. The Council did not honour the invitation of the SRC. The students mandated the SRC leadership to organise mass demonstrations against the fee increment.

* The SRC was concerned that the upfront payment increased by 47% and students were not informed in advance of the increment. The NSFAS did not assist students enrolled for B Tech programmes and they were unable to register owing to outstanding debts.

* The SRC leadership was concerned that management was withholding a court interdict against the leaders of the SRC and felt that they were not free to express their opinion in meetings.

* The library of the institution had insufficient computers and printers for the 14 000 students and this affected learning. Student leadership tried on several occasions to request management to extend library hours in order to help students improve their performance. However, management did not honour their request.

* Management of the institution promised the student leadership that there would be no fee increment until the infrastructure and student support services were improved.

* The management sent out letters informing prospective students about fee increment last year before the meeting of the Council was scheduled. This showed dishonesty on the part of management since the decision to increase fees was already taken before an official meeting for confirmation took place.

* The students were dissatisfied with the closure of five residences last year by management on the instruction of Council as a result of management’s failure to renovate the residences for several years. The shortage of accommodation was a serious concern of the student leadership at the beginning of every academic year. The allocation of residences was no longer based on student seniority or merit. Students who afforded upfront payments were given the best residences, while poorer students were disadvantaged.

 

5.         Committee Observations

* The Committee was extremely concerned that poor students were obliged to pay upfront payment before they could be admitted to the institution. It was noted that the Department had allocated more than R200 million to assist disadvantaged students who could not afford to pay the required upfront payment.

* It emerged that the institution allocated three weeks for the registration period. It was noted that this period was too long and the institution should develop effective measures to ensure that period of registration was reduced.

* It was noted with concern that the NSFAS deposited money into the accounts of students late during the year and students used the money to fulfill their social needs rather than to pay their fees.

* It emerged that insufficient consultation and communication to students were the main causes of disruptions during the registration period. Management of the institution acknowledged that late communication of the fee increment was their fault.

* The Committee emphasised that financial exclusions of poor students based on lack of resources was unacceptable, irrespective of the institutions situation. It was further noted that higher education institutions received support from government and they had no right to exclude poor, academically deserving students.

* The institution was commended for having partnerships with SETAs on placement of students for experiential learning. It was further noted that the institution had placement offices in all its faculties to assist students to get into industry.

* It emerged that there was a Financial Exclusion Committee responsible for making arrangements for those students who could not afford to furnish their debts.

* The student leadership was dissatisfied with the abnormal residence increment approved by Council. According to the student leaders, the increment would disadvantage poorer students since the cost had drastically risen to R30 000 in some residences.

 

6.         Conclusion

The meeting of the Committee with management and student leadership of CPUT was meant to obtain different perspectives on the subject of fee increment for the 2012 academic year. From the interactions with these two stakeholders, it was observed that the institution had financial difficulties in sustaining its operating expenditures owing to an operating deficit that had been escalating since 2004. In the process, the institution was not able to renovate residences for the past 10 years and this led to the closure of five residences. As a result, this increased the demand for student accommodation, and the institution was only able to open two new residences which were not sufficient to accommodate the growing student population.

 

Of grave concern to the student leadership of the institution was the unaffordability of the 11% increase in upfront payments and the 47% increase in tuition fees. According to student leadership, the increment would disadvantage many poor students since the majority of them depended on the NSFAS to finance their studies. Insufficient communication and consultation remained a serious concern for student leadership especially on decisions that affected students.

 

In terms of academic affairs, the institution continued with the registration process for 2012 despite the disruption that tarnished the image of the institution. The institution had put a mechanism in place to improve its graduation and throughput rate for 2013, to contribute to the economy of the country.

 

7.         Recommendations

The Committee, having met with the management and student leadership of CPUT, recommends the following:

* To increase access to higher education and training institutions, the Department in conjunction with NSFAS should be supplied with a database of financially needy students by all higher education and training institutions in advance, so that allocations for needy students can be made prior to the registration period, to eliminate financial exclusion.

* The Committee reiterates its position that no academically deserving poor student should be excluded in any public higher education institution due to indebtedness to the institution.

* The Department should send letters of reminder to HEIs to inform academically deserving students that they do not need to pay upfront payment to register at a HEI.

* The Minister should setup a Task Team that will monitor registration process across all HEIs and intervene on matters that lead to dispute between management and students.

* The withholding of results by higher education institutions with the objective of recouping money owed to them by poor students should be reviewed. Higher education institutions should find other alternatives of procuring fees from students other than withholding results.

* The allocation of financial aid for NSFAS bursary beneficiaries should be implemented during the academic year and the funds should be directly deposited into the higher education institution’s accounts.

* The student leadership of higher education institutions should not engage in mass demonstrations that disrupt institutional activities at times of disagreement with the management of the institution. Further consultations should be pursued with the Department and even the Committee when there are lock outs with management.

* The management of CPUT should lift all court interdicts against student leadership and a consensus should be reached to create a way forward for the institution. The dispute resolution committee of the institution should settle the dispute between the two parties.

* The proposed funding model of higher education institutions should place special emphasis on institutions with the majority of disadvantaged students. This will increase the financial capacity of these institutions to assist those students who are unable to make upfront payment.

 

Report to be considered

 

2.         Report of the Portfolio Committee on Human Settlements on oversight visit to Mpumalanga, dated 15 February 2012

 

The Portfolio Committee on Human Settlements (the Committee), having conducted an oversight visit to Mpumalanga from 24 to 30 July 2011 in relation to the implementation of the human settlements strategic plans, projects and programmes, reports as follows:

 

1.         Background

 

In terms of South Africa’s Constitution of 1996 as well as parliamentary rules, the Portfolio Committee on Human Settlements has a responsibility to conduct oversight over any executive organ of state that falls within its portfolio. In line with this mandate, the Committee undertakes provincial oversight visits to evaluate progress and identify challenges encountered in respect of the implementation of programmes and projects. Furthermore, the Committee seeks to promote and enhance intergovernmental relations and co-operative governance principles in the delivery of human settlement services. To give effect to its strategic plan, the Committee conducted an oversight visit to the Mpumalanga province from 24 to 30 July 2011.

 

2.         Objectives of the visit

 

The objective of the visit was to conduct briefing sessions with the provincial department and other stakeholders in relation to the implementation of human settlement strategic plans, projects and programmes. In addition, the Committee recognised a need to conduct site visits. The focus was on the following key issues:

 

* Implementation of a comprehensive, integrated human settlements strategy in the province;

* Performance in meeting service delivery targets identified for 2010/11, as well as and challenges encountered;

* Role of public and private sectors in service delivery;

* Plans, programmes and service delivery targets for 2011/12;

* Progress in supporting disaster-affected communities;

* Blocked projects and plans to unblock them;

* Strategies in relation to the rectification programme;

* Number of informal settlements, the plan and the progress in upgrading such settlements, including Community Residential Units (CRUs);

* Implementation of Farm Worker Assistance Programme;

* Co-ordination and management of the beneficiary list and incorporation of backyard dwellers in the provincial housing database;

* Use of alternative technologies in construction.

 

3.         Multiparty delegation

 

The delegation consisted of Hon BN Dambuza (ANC) as leader of the delegation; Hon MR Mdakane (ANC); Hon GM Borman (ANC); Hon NA Mnisi (ANC); Hon D Dlakude (ANC); Hon AM Figlan (DA) and Hon AC Steyn (DA).

 

The delegation was accompanied by the following parliamentary officials: Ms K Pasiya (Committee Secretary), Mr L Tsoai (Researcher), Mr M Erasmus (Committee Assistant), Ms F Kwaza (Communications Office) and Mr B More and  Mr N Maganlal (Sound and Vision Unit).

 

The national Department of Human Settlements was represented by the following officials: Mr P Chauke (Chief Director: Monitoring and Evaluation and Acting Chief Director: Sanitation); Mr M Kraba (Parliamentary Liaison); Ms M Mangqalaza (Director: Sanitation); Ms R Mapheto (Director: Grant Management); Ms L Werner (Director: Implementation Support); Mr A Matshego (Deputy Director: Management Information Services); Mr C Zingitwa (Deputy Director: Transformation); Mr J Ngoepe (Chief Planner: Monitoring and Evaluation) and Mr T Nkome (Chief Planner: Monitoring and Evaluation).

 

The delegation of the provincial legislature was led by Hon SPD Skhosana (Chairperson of the Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs) who was accompanied by the following officials: Mr S Msibi (Co-ordinator: Portfolio Committee on Human Settlements and Co-operative Governance and Traditional Affairs and Ms P Kola Researcher, Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs.

 

The provincial Department of Human Settlements was led by Mr SG Sono (Acting Chief Director); Mr F Ngobe (Acting Director: Communication); Ms C Mazibuko (Communication and Protocol Officer); Ms N Mdluli (Administration Officer: Stakeholder Management); Mr H Makhubele (Deputy Director and Regional Co-ordinator: Sanitation); Mr R Mbambo (Deputy Director: Sanitation Programme) and Ms C Mathebula (Community Development Officer).

 

4.         Executive summary

 

The central objective of the oversight visit was to afford the Portfolio Committee on Human Settlements a direct engagement with the provincial Department of Human Settlements in Mpumalanga, the municipalities and other stakeholders. By so doing the Committee intended to critically assess the implementation of human settlements strategic plans, projects and programmes in general.

 

The delegation had an opportunity to interact with the provincial Department, the MEC for Human Settlements and his team, the Chairperson of the provincial Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs and also held meetings with various communities and other stakeholders. Site visits were undertaken to three district municipalities, namely Ehlanzeni, Gert Sibande and Nkangala.

 

During the visit it was evident that the province was committed to implementing and enhancing Outcome 8. For instance, in Nkangala at Klarinet, an integrated development project of 960 units had since been started and 20 units had been set aside to accommodate people living with disabilities. The project entailed the upgrading of informal settlements and rental stock as well as paying particular attention to challenges posed by the gap market. Implementation of the Community Residential Units programme was also taking place alongside the People’s Housing Process in which 5 000 units had been set aside for reconfiguration of plans which would involve co-operatives. The province had adopted a strategic plan to roll out a comprehensive rural development programme including agri-villages development, for example the Van Wyk Vlei Agri-Village.

 

However, the Committee identified the following critical challenges and areas of concern:

* Huge housing backlog.

* Lack of bulk infrastructure: houses were being built with no basic infrastructure in a number of projects.

* Inadequate planning: projects were approved on land without having conducted any proper geotechnical studies. For example, in Thaba Chweu it was discovered that land on which a project had been approved was dolomitic.

* Invisibility of the National Home Builders’ Registration Council (NHBRC) and the Housing Development Agency (HDA).

* Lack of proper management of the beneficiary list.

* Lack of dedicated policy to regulate the roll-out of the sanitation programme.

* Lack of monitoring of contractors resulting in incomplete housing structures and non-compliance with regulations, thus compromising quality.

* Limited community consultation on the part of municipalities: it was a fundamental principle that targeted communities ought to have been involved in all aspects of their housing and human settlements solutions.

* Disaster-affected areas not prioritised: in Bushbuckridge Municipality, bridges that were washed away during heavy rains were not rebuilt, which resulted in school children struggling to get to schools in the affected areas.

* Working relations of national and provincial departments with municipalities: Although the national and provincial departments claimed to have good working relations with municipalities, interaction on the ground indicated otherwise.

 

5.         Overview of meetings and site visits

 

Day 1: 24 July 2011

 

5.1        Meeting with the MEC for Human Settlements, Mr S Masango, provincial Department of Human Settlements and other stakeholders

The delegation was welcomed by the Chairperson of the Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs), who further acknowledged and appreciated that in Parliament there was no day that was not a working day. He extended the Speaker’s warm welcome to the delegation of the Portfolio Committee on Human Settlements. He highlighted that the province understood the responsibility and the seriousness of the Committee in executing its mandate. He tendered the apology for the provincial Committee members as they had attended the Mandela Day celebration activities. He advised the delegation that the provincial Committee and the Executive had a very good working relationship and were co-operating with each other. On challenges, he indicated that in general they were common and improvements to address such challenges had been made. Resolutions taken by the provincial legislature were managed by the provincial department and almost all of them have been dealt with.

 

The leader of the delegation provided an overview of the delegation’s expectations from the presentations and informed the meeting about the delegation’s intentions to conduct on-site visits.  Amongst others, the delegation was interested in how effect was given to the priorities identified in the state-of–the-nation address (Sona) and government priorities as set out in the outcomes-based approach, the newly-transferred sanitation function, the role of the private sector and traditional leadership in the province, as well as adherence to policy and legislative prescripts, including the signing of the performance agreement between the MEC and the Head of Department (HOD) and between the HOD and his directorates.

 

The delegation was also interested in understanding how effective the province had been in improving intergovernmental relations with the municipalities, community involvement in their development, contractors as well as housing institutions. The discussions would also be guided by the information gathered from various oversight reports of Parliamentary Committees such as Adhoc Committee on Coordinated oversight on service delivery and the Select Committee on Public Services, including the presentations made by the national Department of Human Settlements to the Portfolio Committee on Human Settlements.

 

5.1.1     Outline by MEC for Human Settlements, Mr S Masango

The MEC informed the delegation that the programme of the provincial department was informed by the state-of-the-national address and other legislative prescripts. The vision of the national department has slightly shifted, taking account the provision of all amenities as well as working with other departments. Water, sanitation and land invasions were challenges which resulted in delays in keeping and sustaining the developmental agenda.

 

5.1.2     Presentation by Head of Department (HOD) of Human Settlements, Mr D Dube

 

The HOD informed the delegation that the work of the provincial department was informed by the state-of-the-nation address as delivered on 3 June 2009. The state of the province as requested by the Committee was indicated below:

 

The provincial department had developed a comprehensive plan for integrated human settlements that required all settlements, urban and rural, to be the products of an integrated planning approach. These developmental processes occurred within the Spatial Development Framework of the municipalities in the province. In order for the provincial department to achieve the objective of integrated, sustainable human settlements, it had embarked on the following strategies:

 

* Identification and purchase of well-located land (eg Friedenheim at Mbombela and Donkerhoek at Emakhazeni).

* Informal settlements upgrading or eradication.

* Urban Renewal and Inner City Rejuvenation (eg Mbombela and Emalahleni).

* Development of social and economic facilities (eg libraries, community halls, schools, etc).

* Servicing of sites.

* Upgrading of existing and creation of new Integrated Human Settlements/Breaking New Ground (BNG) (eg Emalahleni, Dipaleseng, Steve Tshwete and Emakhazeni).

* Support for Comprehensive Rural Development Programme (CRDP) sites (eg Chief Albert Luthuli, Mkhondo, Bushbuckridge, Pixley ka Isaka Seme, Dr JS Moroka, Thembisile Hani and Nkomazi local municipalities.

In meeting the service delivery targets indentified for 2010/11, the provincial department has been engaging in a number of processes as part of the planning cycle as prescribed by government. During the 2009/10 financial year, the provincial department focused on realising the vision of integrated human settlements in the province. Key to the commitment for the 2010/11financial year was the creation of multi-year Integrated Human Settlements. These included the Breaking New Ground projects at Thaba Chweu, Emalahleni (Klarinet) and Dipaleseng municipalities.

 

During the 2010/2011 financial year, a total of 9 860 of the planned 10 955 units, including hostels, were delivered. The following instruments contributed to this substantial achievement:

* Informal settlement upgrading – 4 022

* People’s Housing Process – 2 158

* Emergency housing assistance – 67

* Individual subsidies programme – 425

* Farm worker assistance – 89

* Rural interventions – 1 464

* Procurement of 28 water trucks by the Department, as part of the redefined mandate, to support water distribution to municipalities.

 

Municipalities encountered challenges of poor alignment of plans, financial constraints in the implementation of BNG projects, non-performing contractors, service delivery protests and mushrooming informal settlements, eg Mbombela and Victor Khanye municipalities.

 

The HOD explained that the delivery of sanitation was done through the Sanitation Unit in the national Department of Human Settlements. In line with the Rural Household Infrastructure Programme (RHIP) for the 2011/12 financial year, a total of R4 million had been allocated to Nkomazi and R4 million to Bushbuckridge local municipalities. Sanitation projects were being implemented and the national Department of Human Settlements had to sign service level agreements (SLAs) with two water service authorities. The Nkomazi SLA has already been signed since the sanitation projects commenced in the previous year (2010/11). The two municipalities had to provide their business plans. Bushbuckridge and Nkomazi local municipalities had to ratify benefiting areas in accordance with Integrated Development Plans (IDPs) and priority rural areas. The sanitation infrastructure delivered nine out of eleven planned sanitation projects in various villages of Nkomazi in 2010/11. About 250 jobs were created through the delivery of sanitation projects in the municipality during the past financial year.

 

The national department engaged the public through the IDP processes by actively participating during the formulation stages of IDPs in municipalities. In terms of private sector collaboration, government signed with Financial Sector Charter. Large-scale investment was made in low-cost and affordable housing by the banks. The Klarinet integrated housing project located in Emalahleni Local Municipality was the first large-scale integrated housing project implemented in the province. The project was being implemented by ABSA DevCo and co-funded by the Emalahleni Local Municipality, the Mpumalanga Department of Human Settlements, the provincial Department of Energy and Absa Bank. Upon completion, different income groups will take occupation. Burnstone mine was involved in the delivery of People’s Housing Process units in Dipaliseng.  Burnstone mine contributed an amount of R10 000 for each housing unit.

 

The provincial department was planning to prioritise rural development and was playing a critical role in the Comprehensive Rural Development Programme (CRDP). A total of 5 300 PHP housing units would be spread over the poverty-stricken municipalities. Apart from PHP delivery, the department also planned to deliver between 300 to 470 housing units under the Farm Worker Assistance Programme and the Rural Settlements Programme respectively.

 

In terms of urban renewal and inner city rejuvenation, the provincial department planned to provide rental stock, particularly in and around the province’s economically active municipal nodes. In partnership with human settlements associations or institutions, a total of 550 rental units would be delivered during the 2011/12 financial year. At the time of the visit, the provincial department reported that it was assessing dilapidated buildings in Nelspruit and Emalahleni for inner-city rejuvenation.  It has allocated a budget of R25 million for this project. Whilst delivering on new projects, attention would be given to 600 houses that were built before 1994 and which had structural defects.

 

A total of 2 150 units would be constructed through the Informal Settlements Eradication Programme. As part of the Integrated Residential Development Programme, 8 235 stands would be developed and 1 600 top structures would be delivered. The Emakhazeni and Steve Tshwete municipalities have been identified for the further roll-out of Breaking New Ground (BNG) Projects.

 

The provincial department and the province have focused on two key areas to improve access to basic services:

* Supporting municipalities to reach all communities and households with services;

* Ensuring that all developments (Human Settlements) that the provincial department is involved in have the minimum services in place upon completion.

 

The province was participating in the development of a provincial Bulk Water Infrastructure Plan as part of a number of interventions in this area in order to ensure that water resources in the province were made available for posterity. The Department had developed an intervention plan in conjunction with the Department of Water Affairs, the Department of Cooperative Governance and Traditional Affairs and municipalities to address immediate bulk water shortages and challenges in the province by providing support to municipalities pertaining to this critical service.

 

The provincial department was also supporting the disaster-affected areas by implementing the Emergency Housing Assistance programme as per the municipality’s demands. The municipality submitted a list of the affected areas, and the department would in turn conduct a technical assessment of the damage and provide suitable interventions. In the last financial year the department delivered 67 emergency housing units to disaster-affected communities throughout the province.

 

There were blocked projects in the province that could not be continued due to various challenges that could not be addressed immediately. In some cases the challenges are contravention of certain laws. A project at Kameelrivier in Dr JS Moroka was approved for 1 000 units as a project-linked developer driven. The developer failed to deliver as stipulated in the contractual agreement due to a land dispute. At the time, services such as water and toilets had already been paid for. The land dispute dragged on for a long time until the municipality purchased the land itself. The department would engage with the municipality to resuscitate the project and implement it as a BNG project.

 

The Matsulu Railway Infill at Mbombela was approved for 350 units in July 2003. Implementation was done in two phases. The first phase consisted of 125 units as in-situ development. All the units were completed. The second phase entailed the formalisation of the provision of services and the building of 225 houses. In the first phase 125 houses were completed, 14 houses were at different stages of construction and 86 houses could not be built due to an illegal, forceful invasion. Efforts to evict the illegal occupants were unsuccessful due to the reluctance of the South African Police Service to institute an eviction notice.

 

The department indicated that in terms of rectification, a consultant was appointed to conduct assessments on the extent of the damage to the houses and provide a full report and the bill of quantities for the work to be done. Based on the information, the contractor would be appointed; and that was referring to pre 1994 houses as well as 1994-2002.

 

In Nkangala District Municipality assessments were conducted in 2006 on 1 000 pre-1994 housing units but the units could not be rectified because of insufficient funds for the programme. Only 100 units have been planned for rectification at Steve Tshwete Local Municipality during the current financial year. In respect of Ehlanzeni District Municipality an assessment was conducted in Mbombela Local Municipality on 500 units but only 65 units were rectified. In Umjindi Local Municipality 500 housing units were assessed but only 84 units have been rectified.

In respect of Gert Sibande District Municipality as assessment was conducted in Lekwa Local Municipality on 400 pre-1994 housing units. The consultant’s report suggested that 80% of the houses should be demolished and rebuilt. Two contractors were on site constructing 150 housing units.  Another 500 post-1994 units were assessed in Dipaleseng, of which 75 have been rectified.

With regard to the informal settlement dwellings, the province has 139 informal settlements with 109 000 households. A total of 15 020 housing units have been delivered through the informal settlements eradication process from the 2007/08 to 2010/11 financial years. In 2008/09 to 2010/11, the department serviced 8 280 sites. In 2010/11, 244 units were delivered under the Community Residential Units Programme. In 2007/08 to 2010/11, three hostels were converted. This was equivalent to 531 rental units.

 

The provincial department planned to eradicate informal settlements through the delivery of 21 184 units which is a portion for Mpumalanga derived from the national target, servicing sites, delivery of 5 296 affordable and social housing, and the identification and purchase of well-located land for rental stock.

The provincial department has progressed extensively in the implementation of the CRU programme which entails the conversion of the old apartheid hostel blocks into habitable family units for rental purposes. Three hostel blocks were completed and the others were in progress. There were approximately 452 units completed in various municipalities in the province. The provincial department was faced with the challenge of non-occupation of some of the completed units that were ready for occupation. The reasons for non-occupation related to the affordability of the rates charged. The provincial department was engaged in a process to resolve this problem by meeting with the various stakeholders, including the municipality, the prospective occupants and community leaders in the areas where the problem had occurred.

 

The provincial department reported that in dealing with the farm worker assistance programme, it had planned to intervene in four local municipalities in relation to housing delivery for the 2011/12 financial year. The intervention by the provincial department came after a municipality identified suitable land and made a request for housing. In other instances farmers volunteered out of their own goodwill to release land to settle their workers. Projects planned were at various stages of implementation and consultants would be appointed to conduct environmental impact assessments and geo-technical studies to determine the suitability of the land for housing delivery. In other instances the Department has moved a step further by building and successfully completing housing units in various municipalities.

 

In managing the beneficiary list, the provincial departmental officials assisted the respective municipalities in cases where beneficiaries applied for houses. Applications were then included in the municipal system and were later submitted to the provincial department once a project had been approved and allocated to the municipality. The processing of the applications in the provincial department was done through the Housing Subsidy System which was co-ordinated by the national Department of Human Settlements. It was indicated that the province had 139 informal settlements comprising 109 000 households. A breakdown per municipality was provided to the Committee.

 

The province has not yet implemented any form of alternative building technologies as it was employing the conventional construction approach (brick and mortar). Three show houses using alternative technology were constructed at Phumlani village. The provincial department would still to take a decision on this matter.

 

5.1.3     Concerns and questions for clarity

 

* The delegation was concerned about the provincial departments’ report which indicated that its comprehensive plan started in 2009, whereas it was adopted in 2004 as a Breaking New Ground strategy.

 

* A concern was raised regarding the role of Housing Development Agency in the acquisition of land. To what extent has the provincial department utilised the land which was purchased for approximately R95 million in 2008? How many housing units had been developed and in which areas?

 

* The report failed to indicate the delivery targets planned for the 2011/12 financial and the initial backlog, including timeframes.

 

* Clarity was sought why R8 million was allocated for sanitation projects in 2010/11 while business plans were still to be submitted (Bushbuckridge and Nkomazi Municipalities).

 

* With regard to the nine sanitation projects in Nkomazi, how many units had been constructed and in which areas?

 

* Were environmental impact assessments conducted prior to the commencement of the projects?

 

* How the provincial department manages to fund the disaster-affected area as Mpumalanga was not declared a disaster-affected province?

 

* A concern was raised with regard to the information provided on the sanitation programme and further explanations were requested. The issue of the bucket system was also raised. The delegation alluded to the fact that the VIP toilets were not utilised by most people due to their bad odour according to the latest research. Communities defecated in the surrounding bushes instead of using those toilets. Communities also needed to be subjected to an educational campaign or awareness on hygiene.

 

* The lack of policy regulating the sanitation programme was also raised as a challenge.

A concern was raised around the Community Residential Units as it was reported that these units had been standing vacant for some time.

 

* Concerns were raised around non-occupancy. How much rent was the municipality planning to charge? Was this amount communicated to the beneficiaries prior to construction?

 

* What was the province doing with non-performing contractors? Were any cost recovery processes underway? Were such contractors, projects and units registered with the National Home Builders Registration Council (NHBRC)? Were any investigations instituted for alleged fraudulent and financial misconduct practices?

 

* Did the provincial department have an emergency housing plan and budget to accommodate emergencies and disasters?

 

* How was the farm worker assistance programme being rolled out?

 

* How was the provincial department managing the issuing of title deeds? How was the de-registration process undertaken in cases where beneficiaries were missing?

 

* The delegation inquired about the Memorandum of Understanding (MOU) between South Africa and the People’s Republic of China in respect of the construction of 400 units in Graskop. What were the objectives and timeframes set in the MOU? What were the expected roles of both national and provincial departments and the municipality concerned? The provincial Department was requested to highlight challenges, including those led to a decrease in the number of originally planned units.

* How many informal settlements were in the province?

 

* What was the extent of the housing unit backlog in the province and what plans were in place to address it?

 

* What was the province doing to address areas of concern raised by the Ad Hoc Committee on Co-ordinated Service Delivery in 2010/11, for example the bucket system in Dipaliseng and Mkhondo Municipality in Amsterdam and the dysfunctional reservoir in Burgersdorp?

 

* The delegation expressed concern at the under expenditure of R51 million in the 2009/10 financial year.

 

* The delegation also expressed concern about the vacancy rate at the provincial department during 2008/9 financial year

 

* The issue of the Mpumalanga Housing Finance Corporation was not clarified and needed to be reported on comprehensively.

 

5.1.4     Responses from national and provincial departments

The Chief Director: Monitoring and Evaluation in the national Department indicated that the Chinese sponsorship programme target was 400 units but this was later scaled down. The challenges or disagreements were as listed as follows:

* Chinese insisted on bringing their own labourers;

* Flouting the country’s tax regime and reluctance to be subjected to the country’s labour relations practices;

* Temporarily importing their own equipment or machinery;

* Some clauses in the MOU were contrary to the country’s policies;

* The municipality changed the plan of the project from low-cost houses to rental stock;

* The labourers were also encountering challenges in obtaining working visas.

 

In addition to the above-mentioned challenges, the Chinese also had also financial challenges to meet the initial target of 400 housing units, which was reduced to 170 units.

 

Ms Dambuza requested the Chief Director to provide a detailed report in respect of the Chinese project to the delegation the following day.

 

In respect of RHIP, the Chief Director informed the delegation that R1.2 billion was set aside for the period 2009-2013 under the Department of Human Settlements to implement the sanitation programme. An amount of R8 million was allocated for both Bushbuckridge and Nkomazi municipalities. However, the allocation to Bushbuckridge was not transferred as the municipality was reluctant to sign the agreement and accept the service provider. Nkomazi Municipality was allocated 515 units and had completed 513 units covering nine villages.

 

The province informed the delegation that the municipality had programmes that were capable to deal with title deeds. The municipality had a standing arrangement with the deeds office to facilitate the issuing of title deeds. Challenges were mentioned in respect of section 10(a) and (b) of the Housing Act of 1997, in that the beneficiaries voluntarily surrendered or sold the state-subsidised houses to the municipality but this was difficult to enforce. Only the court could give the order to deregister a beneficiary. Deregistration was a separate process outside the Housing Act. Courts were very reluctant to grant orders for deregistration. They required proof of evidence (last address and council resolutions) in the case where the beneficiary could not be found.

 

With regard to non-performing contractors, the special investigating unit was working with the province to recover all the monies. Those who were bankrupt would be blacklisted.

 

In terms of land invasion, the Prevention of Illegal Eviction from Unlawful Occupation of Land Act of 1998 was meant to deal with the challenges facing farm workers or farm dwellers. However, the challenges were within the municipalities. There was a lack of monitoring people who settled in an area for more than 72 hours.

 

The provincial department indicated that when the HDA was established it had good working relations with the HDA and had agreed to sign the MOU. Afterwards, it had disappeared. The municipality was using its spatial development framework to determine and purchase well-located land for housing development.

 

The province further indicated that an attempt was made to purchase dilapidated buildings to provide for social housing. Evaluators were appointed to assess those buildings. The budget for this project was R25 million. With regard to rental tariffs of CRUs, the amounts were determined by the municipality. The costs were less that those provided for in the CRU policy. The residents were willing to pay R400 for type 1 (one bedroomed); R500 for type 2 (two beroomed) and R600 type 3 and three bedroomed). With regard to the rental housing backlog, social housing institutions were said to have the necessary figures. With regard to backyard dwellers, no figures could be provided.

 

The national department stated that the social housing programme was part of Outcome 8 and that Mpumalanga has got the target (number of social housing to be built) to deliver on this mandate. The Social Housing Regulatory Authority was obliged to work with all social housing projects. The Head of Department, Mr Dube He further undertook to forward the breakdown of social housing projects per province to the Committee.

 

Audits regarding rectification of houses were conducted and were not finalised. The provincial department received an unqualified report. Performance information of the department was raised by the Auditor-General. Detailed information was not easy to deal with as the system of the provincial department did not assist Auditor-General office in their auditing.

 

On the under expenditure of R51 million for the period 2009/10, the HOD indicated that a request for rolling over an amount of R31million was submitted and granted. The money was spent effectively. The Department of Local Government and Housing was one department then and the chunk of the budget went to local government. The new provincial department of Housing then was established, which introduced new challenges.

 

On the 51% vacancy rate during 2008/09, it was reported that the organogram was approved on 8 December 2010. However, the Cabinet resolved that it should be reconfigured. The positions where personnel were acting would remain until the new organogram had been approved.

The province reported that the land that was purchased for R95 million was transferred to Mbombela Municipality, housing associations and Vryheiden. The province had requested proposals for development from the beneficiaries of the land.

 

On sanitation challenges, the MEC indicated that the Premier had issued a directive to the province to deal with sanitation issues urgently in Delmas and Secunda, as well as the one that has recently been reported in Moloto where the system was dysfunctional.

 

With regard to land invasion challenges, it was reported that this depended on the political will of the municipality to enforce land invasion by-laws. It was further indicated that the government was slow to deliver land to the people and that this lead to the people invading pieces of vacant land. In addition, the issue of racial integration had not been expedited. The determination of rental tariffs was not based on research. Units in Bethal, Witbank and Mzinoni became white elephants. The CRDP was not doing well. The Premier indicated that he required 3 500 units from the CRDP programme and that human settlements needed to establish a myriad of co-operatives that would provide bricks, door frames and window frames in order to create employment opportunities.

 

Day 2: 25 July 2011

 

5.2        Presentation by the Executive Mayor of Ehlanzeni District Municipality, Councillor LN Shongwe

 

The Executive Mayor presented the breakdown of the status quo of the district and delivery per local municipality as follows:

5.2.1     Mbombela Local Municipality

* The housing waiting list was standing at 32 700 houses, which was a combination of extended families, lodgers, backyard shack dwellers and child-headed households.

* There was a need for approximately 1 308 ha of serviced land to cater for the backlog.

* Much of the land in Mbombela was privately owned.

* Informal settlements were a major inhibiting factor as they were sporadic, unplanned and deviated from the mandate of human settlements.

* Matsulu has a housing project comprising 225 units at wards 27 and 28 which had been blocked. A total of 82 houses in the project were illegally occupied, 44 houses were at foundation and window levels; 19 are stands (plots or sites) which were also illegally occupied. The rest of the development had stalled.

* The Department of Human Settlements took a decision not to evict those people.

* There was a need for the Department of Human Settlement to fast-track the Tekwane South rectification project, as well as Phumlani Village.

 

5.2.2     Nkomazi Local Municipality

 

The municipality had a backlog of 51 747 housing units. During 2004 to 2006, approximately 3 121 RDP houses were completed by the then Department of Local Government and Housing. Serious attention needed to be given to poorly constructed houses at Goba Trust, Eriksville, Hhoyi and Mangweni.

 

5.2.3     Bushbuckridge Local Municipality

 

The municipality had a backlog of about 25 500 houses. Incomplete housing units were inherited from Limpopo Province during 2000 to 2005 at approximately seven areas with 13 units. Mkhuhlu and Zola projects required rectification as they showed serious structural defects.

 

5.2.4     Umjindi Local Municipalitity

 

There was a need to construct 142 family units and 50 sub-economic flats in town. The backlog of rental stock for middle-income earners stood at 829 units at Emjindini Ext 1. There were 50 pre-cast houses at Emjindini Ext 10 that needed to be converted to RDP housing units.

 

5.2.5     Thaba Chweu Local Municipality

 

The Graskop housing project had 154 houses which have not been completed since 2000. The Mashishing Ext 5 project comprised 70 units with no sanitation infrastructure, including 25 units at Sabie Ext 10.

 

5.2.6     Concerns and questions of clarity by the delegation

 

The delegation raised the following concerns and questions for clarity:

 

* The delegation was concerned about the land challenges and inquired about the role played by the HDA in assisting the district to acquire land, as well as the role played by the NHBRC in quality control in relation to human settlement projects.

 

* The delegation inquired whether the district had conducted an audit of state land or had a list of land parcels for housing development. The delegation inquired about the role played by the district in controlling the mushrooming of informal settlements and the illegal invasion of land.

 

* A question was asked on whether the municipality had a capacity to deliver.

* In terms of rectification, the delegation inquired whether an audit was conducted on houses that required rectification and those that needed to be demolished, as well as the cost thereof.

 

* The delegation inquired about the role played by the district in assisting the local municipalities in terms of human settlement strategies and planning.

 

* The delegation was concerned about the report of the district that did not reflect sanitation projects and the deliverables that were not clear.

 

* Did the district have a standard format for all municipalities to develop by-laws which would strengthen the development of human settlements in the area?

 

5.2.7 Responses to the questions raised and assisted by the provincial department

 

* The Head of Department informed the delegation that the involvement of the NHBRC was minimal. The NHBRC lacked capacity to assist the province, especially in the registration of projects.

 

* Matsulu had a court order which was not executed by the municipality. The province and the local municipality agreed to set up a team to verify the 225 units which were illegally occupied.

* Interaction with the HDA was inadequate. However, the entity had assisted in purchasing land for Mbombela.

 

* It was reported that projects were in place in Nkomazi Local Municipality. The district has been assisting Umsholozi informal settlements in terms of by-laws.

 

* Units in Bushbuckridge Municipality were inherited from Limpopo province, and Limpopo was going to finalise those projects.

 

* In terms of accreditation, Mbombela, Steve Tshwete, Govan Mbeki, Thaba Chewu and Emalahleni had applied for accreditation and the province was supporting them.

 

* The HOD indicated that the backlog was the national matter as money appropriated for this programme was inadequate.

 

* The Mayor of Mbombela submitted a copy of the presentation that would respond to questions raised pertaining to the municipality.

 

* Sanitation was a bit of a problem, but the municipalities were in the process of establishing policies on implementing sanitation.

 

5.2.8 Site visit to Goba Village

 

Councillor Hlahla informed the delegation that the project had started in 2003. Twenty five houses in the village had structural defects. The councillor alleged that the report about the conditions of the houses was compiled and forwarded to the provincial department, but nothing had been done. The report indicated that the structural defects were due to poor workmanship by the contractor who had been appointed to construct those houses.

5.2.9 Site visit to Mdladla Village

 

The delegation was informed that 50 toilets had been built in the village. During the site visit the delegation was only shown one toilet.

 

5.2.10  Site visit to Mangweni Village

The community development worker showed the delegation a house in which an elderly man was residing. It was full of cracks, almost like ventilators. The floor had potholes. There was no toilet, no water connection and no electricity installed.

 

5.211 Site visit to Tekwane South

 

The project was an example of informal settlement upgrading. It was initially planned to build 100 units but due to shortage of sites the number was scaled down to 97. The beneficiaries were sourced from nearby farms. The houses were 45 m² in size with two bedrooms, a shower and toilet, lounge and kitchen. The toilet did not have a hand basin.

 

Beneficiaries were required to pay connection fees for water and electricity. The delegation visited a pensioner. She was proud to own a house, but the challenge of not having water connected to her house was a problem. She was obliged to utilise a bush nearby when nature called and also had to fetch water from the stream in the village. The delegation requested the municipality to assist the elderly by applying the indigent policy and in the case of the pensioner for water and electricity to be installed.

The community and the Mayor also shared information on allegation of illegal occupation. Most of the people occupying those houses were not the intended beneficiaries. Some houses were sold by their owners to other people illegally. Some people were alleged to own more than one house in Tekwane North and South.

 

The Mayor indicated that in terms of electricity it would be difficult to apply the indigent policy as the electricity was not yet with the municipality, but with Eskom. The Mayor would meet with the district and the provincial department to sort out problems facing the project. The Mayor informed the delegation that the elderly would be provided with water. Research would be conducted on the allegations and a report would be compiled within three months and forwarded to the provincial department and to the Portfolio Committee.

 

Day 3: 26 July 2011

 

5.3        Site visit to Phumlani Village

 

The project started in 2007/08 and the last phase in 2010/11 developed phases 1, 2 and 3. The houses had two bedrooms, an open-plan lounge with a kitchen, shower and toilet. The toilet did not have a hand basin. The councillor indicated that some challenges were encountered with the houses, like cracked foundations, doors that did not fit properly and roofs that leaked during the rainy season. In some areas people were still using VIP and pit latrines, which were not in good working condition. The councillor confirmed that NHBRC engineers were the ones who were responsible for quality control for the project. He also indicated that people from the surrounding area had tried to invade houses.

The councillor informed the delegation that the communities needed to be educated on the issues of land, for example to be informed that the invasion of land would not lead to obtaining houses. The workshops should be arranged to educate communities on how the three spheres of government work and how the budget is allocated.

 

The delegation requested the councillor to forward the report to the Committee on the progress made on the VIP and pit latrines. The delegation informed the municipality that the municipality needed to promote hygiene and the washing of hands before meals, after visiting the toilet, etc. The municipality was requested to ensure that hand basins were installed in all the houses.  In addition, all houses should have aprons to prevent rainwater from destroying the foundation.

 

5.3.1 Meeting with Thaba Chewu Local Municipality

 

The municipality had a population of approximately 559 000 according to the census of 2001. The Mayor informed the delegation that the municipality was faced with challenges such as:

* Unemployment due to the closure of many factories around the area such as the timber factory;

* Bylaws – hawkers were not treating the tourists well;

* Projects that had stalled for various reasons;

* Land challenges – most land was privately owned and it requested the municipality to conduct a land audit so that the municipality could know how much land was available.

 

The Mayor informed the delegation that with regard to the Chinese project, the discussion had started during 1998 between the South Africa and the People’s Republic of China. A contract between the Peoples Republic of China and Thaba Chewu on the implementation of the project would provide 400 units in Graskop. The memorandum of understanding was signed on 12 November 2002. The project targeted middle-income earners. The initial agreement was to build 400 units in 1999, but only 25 houses have been constructed so far. The then Deputy Minister of Foreign Affairs met and signed the memorandum of understanding with the Chinese in relation to the construction of those houses. The number of houses was later reduced to 170 and at the time of the visit the process was stalled. It was indicated that the Chinese had challenges, among others, with working visas.

 

State subsidy houses have been built in the area but lacked basic services. On land issues, most of the land was privately owned. The municipality had requested the province to conduct a land audit so that they can know how much land was available.

 

A total of 327 projects had been blocked or stalled. Green field projects that were approved were later discovered that the land is dolomitic.

 

5.3.2 Delivery to date by the municipality

 

* Mashishing - 416 houses completed;

* Hostel - 90% completed.

 

5.3.3 Challenges encountered by the municipality – blocked projects

 

The municipality faced the following challenges:

 

* Angel fish project which was meant to deliver 1 500 houses could only deliver 1 173 houses.

* Graskop hostel was dilapidated. The municipality was unable to rectify or renovate the hostel as it was assumed that the hostel fell under the Department of Public Works. It was later discovered that it belonged to the pre 1994 government of South Africa and was never transferred to the current government.

* Since 1994, the number of deliverables was slow and demand was increasing.

* Pilgrims Rest was proclaimed as District Municipal Area through the municipal demarcation process that took place during the 2001 local government elections. When the demarcation process changed in 2006, the area was not incorporated into Thaba Chewu Municipality which made it difficult for people to access services. In addition, the infrastructure did not receive approval. The lease agreements for business people had not been renewed.

* Since 2004, 200 beneficiaries were approved and were formally informed, and then later on the study was conducted and revealed that the area was dolomitic. Strangely, new beneficiaries were approved and placed in the same area which had been declared dolomitic. These beneficiaries are now disadvantaged as they cannot be approved again.

* The number of housing opportunities allocated to the municipality was very limited.

* In Marere, land was given to the developers to develop the area but that project has never been materialised.

* Primary school at Graskop hostel still used bucket system and had done so since 2000.

* Refuse is not collected because the removal truck was broken and there were no funds to pay for its repairs.

 

5.3.4 Deliberations

 

Deliberations covered the following issues:

 

* The delegation enquired about the size of the backlog in the municipality.

* What were the reasons for blockages in relation to the Chinese project?

* Who was responsible for quality assurance when the flats were built?

* A total of R100 million was allocated to the municipality. The delegation inquired whether the municipality had the capacity to deliver.

* The delegation raised a concern on how people were placed in an area that was declared dolomitic.

* Clarity was sought on what was going to happen to those beneficiaries who were first approved to receive houses.

 

5.3.5 Responses

 

* It was stated that 11 shops had closed down, tourism was also affected and the area was not properly maintained.

 

* There was no sanitation in the primary school and children have been using the open bucket system since 2000.

 

* The refuse removal truck was broken, there was no budget to fix it and therefore refuse was not collected.

 

* The municipality has been complaining about houses that had been built without infrastructure. This concern had been raised for a period of five years but to no avail.

 

5.3.6 Site visit to Graskop – Chinese project

 

Ms L Lee, project manager briefed the delegation about the project. The project was initiated according to the agreement signed between the People’s Republic of China and the Republic of South Africa. The project was aimed at building 400 housing units in 2002. The project encountered challenges and as a result can no longer afford to build the 400 units. Instead, the number of units has been reduced to 170. The project was initially earmarked for low-cost housing. The municipality had requested the Chinese embassy in Pretoria to change the model and occupation with more specification, which affected the grant financially.

 

The completed 25 housing units were 63, 1 m² in size comprising three bedrooms, a lounge, kitchen and a toilet, but without basic services (water and sanitation). The project became stalled due to various reasons, amongst them a deteriorated grant and struggles by labourers to obtain visas (working permit). The Chinese project manager indicated that they were assisting local people. In the following month (August) the General Manager of the company would visit South Africa with the intension to assist in the funding challenges. She hoped that the project will be unblocked and finalised.

 

The delegation wanted to know why the number of units was reduced from 400 to only 170.  The project manager informed the delegation that it was due to the change of plan from low-cost housing to social housing, which had huge cost implications. On completion, the project would be handed over to the municipality. The municipality would remain the owner of the land.

 

5.3.7 Site visit to Graskop hostel

 

The hostel was built in 1971 to accommodate people working in the sugar and timber factories in the area. The living conditions in the hostel were inhabitable and the building was dilapidated. The municipality was unable to convert the hostel into community residential units as it was not registered with the municipality. The municipality then requested the Department of Public Works to assist by transferring the hostel to the municipality. The Department of Public Works informed the municipality that the hostel was not in their assets register. It was later discovered that the hostel still belonged to the pre 1994 government. The municipality was going to look for ways to assist the residents and for the hostel to be transferred to the municipality. Approximately 17 000 people were living in the hostel.

There was also an informal settlement near the hostel. The municipality indicated that the informal settlement required township registration or establishment. There was a lack of communication from the province for the informal settlement to be formalised and upgraded into in-situ upgrading. A concern was raised that the province delegated junior officials who could not take decisions and that this affected the progress. The Integrated Development Plans (IDPs) in the province did not correspond with those of the municipality. The municipality alleged that the province was formalising land which was under dispute. In the provincial cabinet lekgotla, the integrated Development Plans (IDPs) presented were not in the municipal programme.

 

5.3.8 Site visit to Simile flats

 

The delegation visited Simile flats where approximately 120 residents were residing. The units were not in good condition. The toilets in the hostel were separate from the main house and that presented a huge risk and serious hazard to the lives of the tenants. It was indicated that the toilets were built later and were attached to the main unit. Unfortunately they were not constructed properly. The residents were required to jump from the unit to the toilet. This posed a dangerous situation to residents and required urgent attention by the provincial department.

 

5.3.9 Meeting with Bushbuckridge Municipality

 

The delegation was welcomed by Ms S Nxumalo, Chief Whip of the municipality. The municipal Council was configured in 2011 but had not yet adapted itself to human settlement issues. Challenges encountered by the municipality were raised as follows:

 

* Housing backlog is approximately 25 000 as determined by the waiting list.

* Land is mostly privately owned or owned by traditional authorities.

* Houses built are not reflecting human settlement features.

* Lack of proper sanitation and maintenance of current VIP toilets which led to cholera outbreak. 

* Houses remain incomplete for too long.

* In the 2006/07 financial year, a contractor was allocated 200 units to construct in Makwebo village but that development has never materialised.

* Some projects were inherited from Limpopo province. The construction of these projects was started in 2006/07 and was transferred to the municipality incomplete. A contractor was appointed to unblock the projects.

* In Mashipatshi, 360 units were to be constructed. However, only one unit was reported to have been completed by the time of the visit.

 

5.3.10 Deliberations

 

The following matters were discussed:

 

* The delegation inquired about the total population of the municipality.

* Did the municipality have its own projects rather that those of the district, like CRDP and PHP?

* What happened to the funds that were set aside for the construction of the 200 units?

* Was an assessment made of houses that required rectification?

* Did the municipality have a natural dam to support people in rural areas with water and for sanitation purposes?

* Was there any formal engagement with the traditional authorities in relation to the availability of land for human settlement development?

* How was the municipality managing the social integration of all races?

* How did human settlement projects contribute to job creation?

* How far has the municipality developed woman co-operatives and contractors?

* The delegation enquired about the relationship between the municipality, water boards and other water utilities.

* Were any sanitation projects currently administered by the municipality and the Department of Water Affairs?

 

5.3.11 Responses

 

The Speaker of the municipality, Mr T Shabangu informed the delegation that the municipality had a population of 579 000. The municipality had 960 CRDP units that were inherited from Limpopo. Two contractors had been appointed to unblock the project. The challenge was that the contractors were very slow and had requested an extension of time. The municipality had intentions to construct a dam that would assist the whole community. In Belfast, communities were protesting for basic services like water and sanitation. The municipality was trucking water for communities but those services were very expensive.

 

The Manager informed the delegation that the municipality had the following projects:

 

* 2008/09: 400 PHP housing units were built;

* 2009/10: 200 PHP housing and 950 disaster houses were built;

* 2009/10: a day care centre and the hall were built;

* 2010/11: 960 houses were built, and 1 000 service stands were delivered;

It was reported that the municipality had only one water resource, namely Inyaka Dam. However, the challenge was to channel water to the north part of Bushbuckridge.

 

The delegation requested the national Department of Human Settlements to lead and the province to furnish a detailed report on the status of human settlement delivery in Bushbuckridge, including clear plans to address such challenges. Furthermore, the municipality should provide the Portfolio Committee on Human Settlements with the agreement signed between Mpumalanga and Limpopo provinces on the finalisation of inherited projects, stipulating the number, status quo and timeframes to complete such projects.

 

5.3.12Site visit to Mkhuhlu Comprehensive Rural Development Programme

 

Fifty units were completed and beneficiaries started to reside in the area in January 2011. Some of the houses demonstrated sub-standard work. There were no lintels on top of door frames and window frames.

 

The delegation observed that specifications were not met. Houses needed to have a bathroom or a shower and a hand basin. The toilets were built outside the house. There was no sewer connection in this area. The delegation was informed that the houses were still under retention, which meant that defects still needed to be rectified.

 

The delegation requested that the province and the municipality should consider installing bathrooms or showers and hand basins in those units in an endeavor to promote and comply with good sanitation practices. The contractor should also rectify defects identified in those units. A report on this matter should be submitted to the Portfolio Committee on Human Settlements within a month after receipt of the Committee’s report.

 

5.3.13 Site visit to Zola Village Ward 31 Thulamahashe, People’s Housing Process

 

The project was implemented in the 2010/11 financial year and consisted of 200 units of which all have been completed. The project faced challenges relating to a shortage of water and electricity. Although there were these challenges, the municipality reported that the challenges were incorporated in the municipality’s IDPs. The municipality reported that preference was given to child-headed families when they allocated houses. There was also a high unemployment rate in the area. Accelerated Community Infrastructure Programme (ACIP) sanitation was provided by the Department of Water Affairs.

 

In response to question on defects which were observed in the project, the municipality reported that the houses were still under the retention period. A Community Resource Centre, which was a beneficiary-driven project, was lead by a facilitator.

 

The delegation informed the municipality that the contractor should rectify defects identified in those units and that the report should be submitted to the Portfolio Committee on Human Settlements within a month after receipt of the Committee’s report.

 

5.3.14 Meeting with the Community in former Bohlabela Council Chamber

The delegation was welcomed by Speaker Shabangu, who also introduced the councillors of Bushbuckridge municipality. The Chairperson outlined the purpose of the visit and stated that the delegation was visiting the area to listen to people’s concerns and urged the community to raise all issues pertaining to government’s service delivery and not only in relation to human settlements. She further indicated that community members were free to share their views, experiences and observations in the manner in which public representatives represent their interests. Furthermore, they should criticise contractively and give praise where necessary. She informed the community that some of the concerns raised would be responded to at the meeting and some would form part of the report which would be made available to the municipality and the community itself after it has been adopted by the National Assembly.

 

5.3.15 Concerns and challenges raised by the Community

 

The meeting with the community started around 20h00 in the evening. An elderly gentleman criticised the delegation for arriving late and indicated that the community considered the interaction as lip service. Hence, the perception was that these kinds of visits only took place during election time and thereafter the leaders would disappear. The gentleman was not sure whether the delegation’s visit to the community was going to make any impact or difference as many promises had been made by government and politicians and had never materialised. However, he indicated that the community was happy and appreciated that the Committee had visited them as it was the first visit of its nature to the area.

 

The community raised the following concerns as follows:

* Members of the community thanked government for assisting and providing homes to poor communities. However, the monitoring of contractors posed a serious challenge. Houses were left incomplete, yet they appeared completed in records. Elderly persons still lived in appalling conditions in informal settlements.

* Bushbuckridge Municipality was declared a nodal point, but there were no developments or benefits received.

* Clarity was requested on who qualified for state subsidy houses as applications were submitted but very few were considered.

* Government’s failure to monitor and assess contractors when constructing houses to ensure quality was raised. In addition, the community also inquired whether houses built were accessible. Reference was made to three houses in New Forest and two houses in Allendal. Houses were poorly built: they did not have proper foundations and had structural defects. These houses were falling apart and doors were not properly fitted due to non-compliance with housing specifications. The lack of inspectors also impacted on the quality of houses.

* Poor access roads and lack of maintenance of the existing ones.

* It was reported that the community in this area still used open defecation and elderly persons have to dig their own sanitation pits.

* There was a lack of urgency in assisting people affected by disasters. People were provided with worn-out tents.

* Services such as houses and sanitation were not provided in ward 29, Rollen Hill.

* There was no high school in the area and children had to travel long distances to get to school. On rainy days children were unable to cross the river because the bridge had been washed away after rainy weather conditions. In Nkumane the disaster struck in 1998 and in Wisane in 2004, but the bridges had still not yet been reconstructed.

* On the issue of municipal boundaries, the community raised its dissatisfaction at changes made during the 2011 local government elections (boundary delimitation processes).

* The community inquired about who was supposed to benefit from food parcels. It was alleged that people who seemed to be benefiting were those who were not in need.

* The community raised sharply the issue of consultation by government, including the municipality, as a great challenge.

* The community was also concerned about the lack of response by the municipality to its request in 2008 for a graveyard.

* There was a delayed pilot project in section C of ward 31. Houses were 16 m² and were not plastered and did not have a sink or a bathroom.

* The elderly were not accommodated and were not given preference when houses were awarded.

* A project dating back to 1998 had not yet taken off the ground.

* The community applied for a school (Damisa School) in ward 29 to be renovated but no response had as yet been received from the Department of Basic Education. It was also reported that there was no electricity and proper sanitation in schools.

 

5.3.16 Responses

 

Mr Shabangu, indicated that since the disaster struck the area, bridges had been washed away and children were unable to cross the river. The Department of Public Works, through its Extended Public Works Programme assisted in temporary job creation activities. With regard to concerns about schools, the Mayor undertook to meet with the Department of Basic Education to discuss the challenges encountered.

 

With regard to food parcels, community development workers and ward committees had the responsibility to identify people who were in need and to follow up and forward the list to the Department of social development. If there were alleged inaccuracies and queries on such processes, communities should report these to the municipality and public representatives in their area (parliamentary constituency offices) for assistance.

 

The community was informed that the ward delimitation process has guidelines that considered the criteria used to allocate households into wards. For instance, a ward was made up of 3 000 households. However, communities were given an opportunity by the Demarcation Board to make inputs and comment on the processes. The delegation advised the municipality to involve communities in these processes and that the municipality should inform communities in time, especially on the forthcoming window period to address the concerns of the community.

 

On monitoring and evaluation of quality assurance in the construction of units, the community was informed about the importance of community involvement/participation, in terms of project steering committee structures, to monitor their projects stage by stage (raise issues and advise where necessary). The NHBRC warranty was extended in 2004 for quality assurance monitoring state-subsidised housing. The inspectors from the province and municipality were also part of the monitoring system; therefore if there is still substandard work being carried out, some people should be made to account. However, houses that were built post 1994 to 2004 are the ones that were identified for rectification. Where it was reported that houses were completed that were in fact incomplete, this could be deemed as corruption and should be investigated.

 

People were urged not to sell state-subsidised houses. This made it difficult for government to deliver to all the people who were in need of houses. People were also urged to stop buying stolen building materials as this perpetuated crime and comprised the quality of the service.

 

In terms of the criteria of allocating houses, consideration should be afforded to the elderly, child-headed households and persons with disabilities.

 

The delegation informed the community that a service provider appointed to construct toilets should excavate the pits and if it happened that the community participated in such process, they should be remunerated for doing so.

 

A member of the Mayoral Committee offered to assist members of the community who raised their challenges during the meeting. In respect of some of the issues that were not responded to, the municipality was requested to report to the community at a later stage. Other issues would be looked at by the delegation and a report would be forwarded to the municipality.

 

The delegation requested a detailed report of the project that was supposed to start in 2008 but never materialized. The report should be submitted to the Portfolio Committee on Human Settlements within a month after receipt of the Committee’s report.

 

Day 4: 27 July 2011

 

5.4        Presentation by the Executive Mayor of Gert Sibande District Municipality

 

The Executive Mayor, Councillor KW Montloung, presented a brief overview of the district. The district had an estimated population of just over 985 000 and covered a geographic land area of about 31 846 km², incorporating Albert Luthuli, Msukaligwa, Mkhondo, Pixley Ka Seme, Lekwa, Dipaleseng and Govan Mbeki. The municipality had not been engaged by the province in all programmes. In terms of the provision of basic services, the municipality had covered a large number of areas to such an extent that the municipality was in the process of constructing regional water schemes that would address the needs of the people. It was also indicated that there were still areas with incomplete slabs.

 

In respect of Mkhondo (in Amsterdam) and Dipaleseng municipalities, water supply and roads were in a terrible state and the community was still using the bucket system and open defecation. The quality of VIP toilets was also reported as being in a bad state and was not sustainable. The district was affected by service delivery protests in 2009 due to the slow pace of delivery. The district and the province were still trying to resolve those challenges.

 

The district took the issues of human settlements seriously and had appointed officials to manage all the issues related to human settlements. The district was the centre of the province. It was a gateway to coal terminal road to Richards Bay. The roads were not in good condition due to the loads carried by trucks. The issue of co-ordination, planning, design and the handover process was the responsibility of the head of human settlements. There was a need for co-ordination with SANRAL with regard to roads.

 

The Mayor indicated that the communities needed to be educated and empowered about the role and processes that took place in the municipality. The communities should understand the budget, plans and processes.

 

In conclusion, the Mayor indicated that the Speaker, Chief Whip and the Councillors would accompany the delegation throughout the site visits.

 

5.4.1 Comments by the delegation

The delegation indicated that the officials would need to conduct qualitative research before implementing the VIP system or any other kind of rural sanitation system. The communities should play a vital role in choosing the type of sanitation they deserve. Co-ordinated planning for sanitation delivery between all spheres of government was cited as very crucial. The sanitation programme was also coupled with hygiene; therefore “the hand-wash awareness campaign” should be undertaken by all spheres of government seriously. Water services were also a challenge that needed to be resolved. The municipality was informed that the sanitation programme should create job opportunities and promote the participation of women co-operatives in such programmes.

 

The District status was not presented but the documents were handed out.

 

5.4.2 Site visit to Msukaligwa Extensions 3, 4 and 6

 

Ms P Nkona, project manager briefed the delegation and indicated that the project was an in-situ upgrading project and that units were scattered across the area. The houses had two bedrooms, a lounge, kitchen and a toilet without a hand basin. The beneficiaries were identified by the municipality. The province and the municipality processed the applications. The subsidy criterion was used for those who qualified. The project was initially meant to deliver 200 units but the municipality later reduced the number to 122 while 278 units would be built in Chriessiesmeer. In the project 114 units were completed and the remaining eight still had to be delivered. The project was supposed to be finalised by March 2011 but due to service delivery protests, the progress slowed down. The project was stopped and later resumed, and it is expected to be completed by end of September 2011.

 

The project was contractor-driven and two contractors were appointed. One contractor was meant to deliver 100 units and the other contractor was given 22 units and the other portion in another extension. The district had the database of the beneficiary list. The NHBRC played a critical role in monitoring quality assurance and worked jointly with the district technical team. The NHBRC also assisted in choosing the type of foundation according to the soil type.

 

The project encountered sewer challenges in that connection points were not matching the pipes from the houses.

 

The delegation was concerned about the drains that were running on top of the ground instead of being underground. In response to the concern, an official from the provincial department indicated that the points were fitting well with the pipes. This was because of the topography of the area: some areas were on higher slopes and others on lower slopes. Nonetheless, the delegation remained unconvinced by the statement and would discuss the matter further.

 

5.4.3 Site visit to Chriessiesmeer/Chibikhulu informal settlements

 

The project also aimed to upgrade informal settlements. Three contractors were appointed to construct 278 houses. Of this number, 178 houses were completed and beneficiaries had moved in by April 2011. The houses had two bedrooms with an open-plan lounge and kitchen, a shower and a toilet with no hand basin.

 

5.4.4 Challenges

 

Ms Nkona, project manager informed the delegation that some people in the area invaded stands with bulk infrastructure. The unavailability of beneficiary list delayed construction. At some sites there was no bulk infrastructure installed and in some areas toilets were built but not connected to a sewer system due to a lack of water.

 

The delegation advised the province and the municipality to install hand basins in compliance with the National Housing Code specification and good sanitation and hygiene practices. The delegation was surprised about the unavailability of beneficiary lists whereas it was confirmed that the municipality was upgrading such informal settlements. A report should be submitted by the provincial department to the Portfolio Committee on Human Settlements on receipt of the Committee’s report.

 

5.4.5 .5Site visit to eSandleni disaster-affected area

 

The Department received a request from Albert Luthuli Municipality to assist the people whose houses were damaged by heavy rains and storms during December 2010.

 

In January 2011, the provincial department appointed Ridonga Projects to demolish and rebuild the 22 affected houses of which seven were state-subsidised houses and 15 were mud houses at eSandleni village.

 

The contractor had successfully completed the units during March 2011. The classroom roofs were blown away and temporary classrooms were provided. A bridge was washed away and had unfortunately not been rebuilt. As a result, the school children were unable to access the school, especially on rainy days.

 

The municipality faced a challenge in maintaining VIP toilets, which constituted a health hazard to communities.

 

5.4.6 Site visit to Silobela blocked project

 

The project was supposed to construct 500 units, but it was blocked. Twenty nine houses had not yet been constructed. Approximately 31 beneficiaries were supposed to benefit, but the housing system was rejecting them as they seemed to have benefited already. An amount of R77 million was set aside to unblock the project, but the province has appointed the municipality as an implementing agent.

 

The delegation requested the municipality and the province to assist and address the challenges facing beneficiaries who had been rejected by the system and advise them appropriately.  A detailed report with a list of beneficiaries and the assistance given should to be submitted provincial department to the Portfolio Committee on Human Settlements on receipt of the Committee’s report.

 

Day 5: 28 July 2011

 

5.5        Meeting at Govan Mbeki Municipality

 

The delegation was briefed on Mzinoni hostel, which was 27 years old. The hostel project started in May 2009 and was meant to be completed by May 2011. The plan was to be demolished the hostel and reconstruct according to the current specifications.

 

The progress was hindered by the residents who denied access to the constructor to install services such as water and electricity connections. The murder of one of the civilians impacted on the progress of the project. Municipal officials who were alleged to be implicated in the incident were arrested and were released later as the allegations were found to be baseless. The municipality and the residents were to identify as piece of land where they were going to be relocated to allow the construction to continue. The residents later refused to be relocated, alleging that the piece of land belonged to other residents in a nearby settlement. The municipality informed the delegation that a meeting with the residents to discuss the matter further was scheduled for 2 August 2011. The province reported that the slow progress impacted negatively on the department’s fiscus as the department had appointed a security company to take care of the completed units.

 

Initially, the project consisted of 176 units in total. In phase 1, four blocks with 32 units had been constructed and completed but lacked basic services. It was reported that according to the municipality, not all the residents qualified for a government subsidy. Some had to benefit from other schemes. The municipality also confirmed that no decision had yet been taken on rental tariffs. The municipality raised a concern on the reluctance by the beneficiaries to pay rent.

 

It was reported that the second phase was blocked as a result of the refusal by residents to relocate. The residents stated that the municipality should come up with a clear and transparent plan in this regard.

 

5.5.1 Site visit to Mzinoni hostel

 

The delegation met with the residents of the hostel with the intention of understanding their side of a story. The Mayor and the delegation addressed the residents about the new hostel upgrading and the benefits to them as residents. The Mayor informed the residents that the hostel was due for upgrading and that the residents should allow the contractors to continue with their work. She further informed them about a piece of land in Ext 11 that had been identified for them where state-subsidised houses would be built. The Mayor requested residents to allow the municipality to screen the list in order that those who were working and qualified for other schemes could be accommodated.

 

The member of the residential committee indicated that only 10% of residents were employed in the hostel and that 90% were unemployed. He further expressed their grief at the death of one of their members where it was alleged that municipal officials were the suspects but that nothing was done. It was discovered that the land that was identified had been allocated to another group of people. Even though the hostel is inhabitable, the residents claimed that they belonged there and would not move until the municipality constructed their houses to enable the whole hostel to move at once.

 

The delegation urged the residents to allow those who qualified for relocation to the completed units to move in. The relocation process would be undertaken in phases, which would assist the municipality to accommodate all the families that required accommodation.

 

The delegation requested the province to provide temporary relocation units while the process of installation of bulk infrastructure was undertaken. The municipality and the province made an undertaking that they would have a meeting where they would meet and discuss the issue extensively. The province was also requested to make a follow up on the alleged murder case of one of the civilians and report progress to the Portfolio Committee on Human Settlements. The municipality should facilitate a counseling session for the widow of the deceased.

 

5.5.2 Meeting at Lekwa Municipality

 

The Mayor, Councillor C Morajane, welcomed the delegation.

 

The municipal report was not presented, but submitted to the delegation due to time constraints. It was agreed that a summary would be presented on site.

 

5.5.3 Site visit to Standerton hostel

 

The hostel would be demolished and rebuilt. The project management team lacked capacity and the contractor abandoned the project. The department decided to appoint a new contractor and a new project management team.

 

The allocation for this project was R80 million. Single storey units would be constructed. The province planned to appoint consultants to modify those structures. The residents were advised to form a trust and would enter into an agreement with the municipality to address the issue of rental tariffs. It was reported that before the abandonment of the project, TRAs were provided for the duration of the contract. The contract would require to be revisited and the contractor would be requested to renovate the TRAs.

 

The delegation indicated that new TRAs should be provided because the old ones were already worn out. The hostel should be upgraded according to the BNG policy. The delegation also raised concerns about the lack of timeframes for completion of the project, including the steps taken against the contractor who constructed poor quality houses.

 

5.5.4 Site visit to Lekwa upgraded informal settlements - 2165 (Rooikopen Ext 4)

 

The project was planned to start on 20 October 2009, but the actual start date was February 2010. The project was aimed at upgrading 2 165 informal settlements and approximately 1 500 households stood to benefit. Twenty two contractors were appointed for the project. The squatter camp residents were relocated to Rooikopen in 2004 and a bucket system was provided for sanitation. Sites were set aside for private school and private child care centres, a secondary school, a clinic, a community hall and a library. The planned clinic site has been earmarked and the New Denmark has committed a donation to build the clinic.

 

The project was challenged by a lack of enforcement of by-laws by the municipality which has led to the mushrooming of informal settlements around the existing houses. The plan for the second phase of the project was intended to accommodate those households that were not catered for in the first phase. It was also alleged that beneficiaries were coerced by contractors to sign happy letters even though the houses were incomplete.

 

5.5.5Comments by the delegation

 

The delegation inquired about the role of the province and the municipality in ensuring that the handing-over process was legitimate. The municipality indicated that it had only one inspector which made it difficult to monitor the handing-over process.

 

5.5.6 Site visit to Siyathemba, Balfour pre 1994 rectification programme

 

The province informed the delegation that the project was implemented under the rectification programme of state-subsidised houses built between 1994 and 2004 at Siyathemba (Balfour). Initially Grinaker Developers were appointed and were allocated 593 housing units during 1996. Some of the houses were found to be sub-standard, hence they required rectification. A consultant was then appointed to conduct an assessment of the extent of shoddy work only for the identified 500 housing units. Crystal Sparkle was appointed as the contractor to do the rectification in 2009.

 

There were no challenges in implementing this programme except that the municipality had a limited budget to rectify more houses according to the assessment report.

 

The delegation observed that those houses were not rectified according to the current human settlement specification. Some residents were renting from the owners and were not aware that they were required to register with the municipality in order for them to be on the waiting list.

 

There were conflicting statements between the Mayor and the officials with regard to the number of houses identified for rectification and the ones that had been completed. As a result of late arrival by the delegation to the area and as it was already dark, the discussions took place in a house and the delegation was not able to see all that had taken place.

 

The delegation advised both the national and provincial departments that they should seriously consider accessing funds in order to urgently address the issues of inadequate sanitation installed in the bedrooms without separating walls. Furthermore they should revisit Balfour and verify the facts on housing challenges in the area and report back to Portfolio Committee on Human Settlements, detailing clear plans and timeframes to address such issues including clarity on the dispute on the number of framed houses that were demolished.

 

Day 6: 29 July 2011

 

5.6        Meeting at Nkangala District Municipality

 

The Executive Mayor, Councillor SK Mashilo, gave a brief overview of the status of the district. The district is 16,880 km² in size and consists of six local municipalities: Emakhazeni, Victor Khanye, Thembisile Hani, Dr JS Moroka, Emalahleni and Steve Tshwete. Nkangala district municipality is the economic hub of Mpumalanga and is rich in minerals and natural resources. Emakhazeni is the largest municipality with the lowest population.  Dr JS Moroka is the smallest municipality with high poverty rate and unemployed people. Emalahleni Municipality has a larger population than Nkangala. Dr JS Moroka and Thembisile Hani are former homelands and there is no economic spin-off. Between Emalahleni and Delmas, a big development was implemented and the plans of the district had linkages to the popular mandate of 2009 to 2011.

 

The district has incorporated Outcome 8 targets into the IDPs. In responding to government’s priorities, the district planned its work according to Outcome 8. The District Mayoral Committees have signed the agreement of commitment to the implementation of Outcome 8.

 

The district has identified anchor projects that would contribute to the economy of the province as follows:

* The spatial structure of the Highland scale project was one of the anchors in Emakhazeni. In addition, the district was developing a convention centre in Steve Tshwete due to its proximity to Sandton. This would assist in diverting some meetings to the new venue.

* The Moloto rail corridor was the biggest project and was located between Thembisile Hani and Dr JS Moroka municipalities. Such an initiative was the result of many accidents on the Moloto road and the district was of the view that the rail corridor would be the option to address the challenge. It was envisaged that the project would assist in alleviating poverty in the area.

* In Victor Khanye there were plans to develop an airport that would service the overflow from OR Tambo airport and would boost Los Kop tourism.

* The construction of a power station would contribute approximately R170 billion and was one of the biggest in the country between Victor Khanye and Emalahleni.

 

The Mayor indicated that the district was committed to the improvement of the physical, socio-economic and institutional environment in order to address poverty and promote development. The district identified 20 areas for integrated development plans through community involvement. Out of 20, six were not necessarily in the municipality’s competency but were under sector departments such as health, education, social development and human settlements. The district embarked on community outreach programmes twice a year in March and September.

 

5.6.1 Challenges raised

 

The following challenges were raised:

 

* Substantial housing backlog of the district;

* Slow pace of housing delivery;

* Poor building quality by contractors;

* Long period of construction and completion of state-subsidised houses;

* Selling of state-subsidised houses;

* Inadequate budget allocation for housing construction;

* No proper sanitation provided to some houses;

* Houses in Emakhazeni built on wetland.

 

The Mayor indicated that it would be appreciated if Parliament could assist with solutions to prevent the sale of state-subsidised houses. The district also informed the delegation that a resolution was taken not to award contracts to those contactors who produced shoddy workmanship.

 

5.6.2 Deliberations

 

The delegation enquired about the following:

* Upfront payment of R2 497 by beneficiaries and its purpose.

* The number of informal settlements in the district and the number due for upgrading in this financial year.

* How the municipality was addressing the issue of the beneficiary list.

* The number of blocked project, in which areas and how long they had been blocked.

* The number of houses earmarked for rectification and whether an assessment had been conducted and how many houses were due for demolishing.

* The involvement of the NHBRC in the assessment and whether the geotechnical assessment was conducted.

* What steps were taken against the inspectors who were involved during the construction of houses on wetlands in Emakhazeni and without adequate sanitation facilities?

* Did the municipality have plans in place to mitigate in areas affected by disaster?

* What was the role of the Housing Development Agency in the acquisition of land?

* How many job opportunities were created?

 

5.6.3 Responses

The district responded to some concerns and questions raised. The upfront payment was paid by the beneficiary after the approval of the house. This amount was then paid to the department’s account as collateral for each beneficiary. The district informed the delegation that the NHBRC was not committed to their processes as they were coming as they pleased. The beneficiary list was not co-ordinated before the approval of the project but only developed when the project was about to start.

 

It was reported that all the projects were not completed. In Sakhelwe, Big Five Women Consortium was given 60 houses to construct. Of the 60 houses, six houses were not constructed. In wards 5 and 6, a project consisted of 380 houses, awarded in 1998, was still not completed by the time of the visit. The district was also challenged by the lack of capacity as it only had one building inspector. Houses of poor quality were approved. The province was not assisting by providing inspectors to conduct quality assurance inspections. The appointment of service providers was still a challenge.  The disaster relief programme took time to address problems of the victims due to red tape relating to rules and responsibilities between municipalities and the province.

 

In wards 1 and 9 in Victor Khanye and in wards 1, 2 and 3 the municipality bought land and the latter found that there was a dispute. No geotechnical investigation had ever taken place.

 

In Dr JS Moroka Municipality tents that were provided for disaster relief were worn out. Human Settlement IDPs had housing chapters that indicated the backlog and the number of jobs created.

 

In Thembisile Hani Municipality the province has taken initiative to build 960 houses in various wards. The alignment of the department, municipality and the province was not the same. The appointment of service providers was also a challenge. Monitoring of service providers was difficult as they did not listen to municipal officials when they tried to correct the wrongdoings of a service provider.

 

It was reported that in Emalahleni there were challenges in quantifying the number of informal settlements and backyard dwellers. The municipality had applied for level-two accreditation. It was alleged that there were houses that were occupied by people who were not the rightful owners.

 

The Mayor confirmed that there were no open toilets in the district. The district provided VIP toilets through the Extend Public Works Programme in areas were water was scarce.

 

The delegation advised the province to replace asbestos roofing with appropriate roofing. The delegation further requested that the province should submit to Parliament plans to replace such roofing before the end of October 2011. Houses that were occupied by people who were not the rightful owners should be audited and necessary steps should be taken by the province and the municipality to reallocate such houses to the rightful owners. The allocation of housing should prioritise the elderly, the disabled and child-headed families. The policy provided that councillors should be recused from the allocation of beneficiaries. However, as public representatives, they had the responsibility to facilitate the process and represent the communities where there were complaints and challenges. Therefore it was important for the province to empower municipalities in this regard. The dual allocation of units should be addressed as soon as possible. The province and municipalities should budget for proper TRAs and refrain from using tents and corrugated iron as temporary structures. The houses in Emakhazeni that are built on wetlands should be rectified.

 

The delegation further indicated that the process of savings must not compromise the rights of the people from accessing housing due to their inability to save. As the province indicated that R77 million was allocated to unblock projects, the delegation requested the province to provide Parliament with the following:

* District housing backlogs per municipality;

* Detailed list of job creation initiatives;

* List of blocked projects and plans to unblock them;

* List of backyard dwellers and policy and plans to address their plight;

* List of houses with asbestos roofing.

 

The province must ensure that the policy framework for disaster relief and emergency housing was able to respond urgently.

 

5.6.4 Site visit to Klarinet mixed houses

 

Klarinet was a mixed housing development with state-subsidised, gap and bonded houses. The project was developed as a private-public partnership with ABSA Bank. An amount of R1.4 billion was set aside for the construction of this development. Sites have also been set aside for the development of primary and secondary schools, a clinic, a sports field and all other housing amenities. The project was managed by Devco and was financed by ABSA. The municipality donated land for the development.

 

During the time of the visit 167 state-subsidised houses had been completed and beneficiaries had already moved in. The delegation managed to view one of the houses, which had two bedrooms, a lounge and kitchen, a shower, a toilet and a hand basin. Twenty per cent of the units had been set aside for the disabled. During the inspection it was found that the front door was not properly fitted, and the contractor was requested to correct it.

 

5.6.5 Site visit to KwaGuqa community residential unit - eMalahleni

 

Phase one of the KwaGuqa community residential, started in 2007 and 36 units were completed. During the time of the visit the units were not yet occupied due to rental rates that were not finalised by the municipality and the provincial department. The units range from having two to three bedrooms with a tiled floor, a self-standing four-burner stove, paved in the surroundings with security gates and a carport.

 

The rental proposal also varied according to the size of the flat. The Council resolved at a meeting held on 31 March 2011 that the rental should be market based, depending on the ability of the tenant to pay, for example, as follows:

* 64.50 m² unit   =          R646 per month

* 68.60 m² unit   =          R688 per month

* 88.00 m² unit   =          R882 per month.

 

The prospective tenants signed lease agreements with the Emalahleni Housing Institution. The current hostel residents who did not meet the Community Residential Units’ eligibility criteria should be assisted in terms of housing subsidy instruments appropriate to their circumstances. The tariffs should be incorporated in the budget.

 

In phase two of the project 146 units had been completed and were similar to those of phase one.

 

5.6.6 Site visit to Tweefontein J (CRDP)

 

The project was aimed at assisting rural people and was started in the 2010/11 financial year with 100 units. The contractor appointed to construct houses was JM Plumbing. The units were 50 m² in size with two bedrooms, a lounge, kitchen and an outside VIP toilet.

 

The delegation noticed that the finishing was not in a good condition as the roof sheets were not properly fixed. When the wind blew, all the dust penetrated and on rainy days the roof leaked. The zinc or corrugated doors were also not fitted properly. A contractor was advised to attend to the leaks and doors urgently. The municipality and the provincial department would monitor that situation and forward a report to the Portfolio Committee on Human Settlements by March 2012.

 

5.6.7 Site visit to Phola enhanced people’s housing process (ePHP)

 

The ePHP programme was based on the concept where beneficiaries were given an opportunity of being involved in the construction of their own houses.  Rospa Trading 49 cc was appointed by the Department of Human Settlements as a Community Resource Organisation (CRO) for the 2010/2011 financial year. Rospa Trading 49 cc was allocated 100 units which were later scaled down to 97 housing units. The CRO could not build the remaining housing units because of the protest by the community claiming that there was nepotism in the allocation of houses. The budget allocation was R6 571 915 and included the geotechnical allowance.

 

The beneficiaries in this project were the elderly, women, people with disabilities and child-headed households. They were also given a chance to choose from three plans in order to diversify their villages. Local people were employed, of whom 116 were unskilled labourers, and 50 were skilled bricklayers. Skills transferred were in relation to bricklaying and roofing.

 

Ninety seven houses were completed. The remaining three scaled-down units would be allocated in the next financial year. The houses had two bedrooms, a lounge, a kitchen and an outside VIP toilet.

 

5.6.8 Site visit to Social Housing Project in Middelburg

This social housing project was started in 2000. There were 500 units in total: 450 units were subsidised and 50 units were not subsidised. The rental for a two-bedroomed house for an individual earning less than R3 500 per month was R2 478.08. Those who earned more than R3 500 (unsubsidised) were charged R3 907.69 for rental for a two-bedroomed flat with a loft. People were expected to pay a deposit prior to the occupation of a house. This money was refundable when a person moved out. However, conditions were set to manage the area and the housing company carried out an inspection to check if the flat was in good condition when the person or a family moved out.  It was indicated that the maintenance of houses was carried out in two ways: long-term maintenance that would fall under a particular year’s budget or ongoing maintenance. 

 

5.6.9 Deliberations

 

The delegation raised the following concerns and question for clarity:

 

* Were there any social housing companies established across the province and were all of them registered with the Social Housing Regulatory Authority (SHRA)?

* Had any project been completed since 2000?

* A concern was raised where people earning less than R3 500 and are expected to pay a monthly rental of R2 478.08 as this would not assist those people because their earnings were low for them to afford such rental.

* Clarity was sought on whether there was an option for someone who was renting to buy.

5.6.10 Responses

 

There were social housing companies established in the province that were registered. There was a new housing project which would construct 200 units and was funded by Standard Bank and the provincial government. It was said that the rental figure was based on when the Social Housing Company was getting a subsidy of R15 000. When the project was started, the rental was between R875 and R1 200, which was why it became high. It was said that in the past such people who were subsidised were earning less than R3 500 and now people’s earnings have increased. The response was that this option was only available in the township. The proportion of rental payment is 95%.

 

In relation to body corporate structures, there was a tenants committee that looked after the running of the flats. The delegation raised the issue of the social housing policy that stated that the houses were meant for rental purposes. People rented for a certain period of time while they were still subsidised. When the individual’s income bracket increased, such people should not continue to be considered under the subsidy because they could afford to buy in a formal housing system. The concern was also expressed that there were people who were earning less than R3 500. These people were looking for places to rent. They were not able to access the subsidised units as the units were all occupied and at times by people who could afford to rent somewhere else.

 

The delegation wanted also to know if there was any clause in the lease agreement that stated that should a person’s income bracket change, that person would be relocated by having to rent somewhere else by virtue of their income having been increased beyond the subsidy margin. The provincial housing representative indicated that the Social Housing Act did not mention anything to the effect that should a person’s income bracket increase; the person would be required to move out of the subsidised unit.

5.6.11 Emakhazeni local Municipality (Sakhile)

The project started in 2009 as a response to eradicate the informal settlements around the area of Emakhazeni Municipality. There was a high demand for housing in this area. It was indicated that 520 sites were initially planned to be serviced, but only 340 sites were serviced. The municipality approved 200 subsidies and the beneficiaries were identified and approved. However, a total of 198 units were completed. It was reported that the remaining beneficiaries were living in the wetlands. The municipality committed itself to provide electricity and roads.

 

It was indicated by the municipality that the sewerage system had gradually become overburdened because of the growth in the population and a number of houses in the municipality. This would therefore make it less possible for the sewerage system to accommodate any future developments, for both water and sewage. The LM stated that it had put a moratorium on any developments so that the municipality could deal with the issue of bulk infrastructure.

 

The number of informal settlements in Sakhile Township had increased such that when the municipality provided housing for those who were on the waiting list, others kept coming in. In addition, backyard dwellers were not accommodated when the list of beneficiaries was compiled, which made it very hard for the municipality to eradicate informal settlements completely. The demand for housing was very high.

 

In response to whether the municipality had enough water in the area, the Executive Mayor told the delegation that there was a challenge as far as the provision of water was concerned but the Nkangala District Municipality was in the process of assisting the municipality. Because Eskom provided electricity, the municipality reported that the capacity of providing electricity to the people was available.

The delegation indicated that because of the green field developments, the Sakhile Township had the opportunity to create an integrated human settlement in the area. The municipality should consider the issue as this would bring people closer to their workplaces, schools, business centres, places of worship, etc. The area could build roads and other required infrastructure and had the potential to become a fully fledged suburb. The local municipality indicated that all this was in the pipeline and had been catered for in district IDP.

 

The delegation inquired whether the municipality had the capacity should finance be made available. The Mayor indicated that the capacity was available and that the local municipality had all the developments planned in its IDP. In addition, Emakhazeni was the biggest area in the region but it had a small population. However, unemployment was very high which put considerable strain on resources because revenue collection derived from rates was very small. The local municipality was dependent on the equitable share and other support from elsewhere. The Mayor indicated that the equitable share and how it was structured disadvantaged such municipalities.

 

In respect of sanitation, the local municipality indicated that it used a waterborne system which was working. The Mayor indicated that water was not necessarily a problem. There was sufficient capacity but the municipality would experience challenges with future developments.

 

The delegation indicated that green field developments such the one that was taking place in Emakhazeni could not take place in the open. The local municipality needed to provide every household with trees. It was requested that SHRA should look into this issue where a person became upwardly mobile, either socially and economically.

 

5.6.12 Site visit (housing inspection)

Upon the delegation’s visit to houses, there was evidence of visible structural defects and that the house was occupied by minors. They indicated that a happy letter was signed but they did not necessarily know what the letter was about. The delegation expressed serious concern at the shoddy work and that the contractor left without fixing those defects. It was also indicated that the NHBRC did not play any role in ensuring the quality of houses. The quality inspection was conducted by the inspector from the province. The delegation discovered that the employees from the municipality were charging residents a fee that ranged from R150 to R300 in order for water to be connected in their houses.

 

The delegation expressed its disappointment at such corrupt practices because this was done to people who were unemployed and who were hardly able to have such amounts of money. The Mayor indicated that this would be investigated and the perpetrators would be brought to book.

 

The delegation advised the province and the municipality to attend to the house with structural defects as a matter of urgency as the house was occupied by minors and furnish the Portfolio Committee on Human Settlements with a report a month after receipt of the report.

 

5.6.13 Site visit to Van Wyk’s Vlei farm housing project

The programme manager informed the delegation that the farm owner donated a piece of land to his farm workers/dwellers in 2007/2008. The project fell within the 2010/11 financial year. The houses were 45 m² in size. A total of 40 families were catered for on this farm. In 2009, there was a process of rezoning and a proper township was established. The families received normal subsidies. VIP toilets were provided because there was no waterborne sewer. A borehole was used to provide water to this community. The local municipality would construct a new borehole. Electricity would be provided by Eskom.

5.6.14 Deliberations

 

The delegation wanted to know if beneficiaries received the title deeds for their houses after they have been given to them. Because the land was donated, the delegation wanted to know if the provincial department could have provided more services in relation to the project. Furthermore, if farm worker died and that farm worker was the owner of one of the houses, what would happen to that beneficiary’s children? It was indicated that the type of subsidy allocated in terms of the project only allowed for a 40 2m² houses also because the houses are not a PHP in nature. On the issue of a beneficiary who happens to die, it was indicated that title deeds are provided to a family and therefore the children will inherit the house from their parent.

 

5.7        Overall observations by the delegation

 

1. The province still faces a huge housing backlog. However, the delegation observed that it is difficult for the province to quantify its backlog figures.

2. In terms of bulk infrastructure, houses were being built with no basic infrastructure in a number of projects

3. Inadequate planning: projects were being approved on land without having conducted any proper geotechnical studies. For example, in Thaba Chweu it was discovered that land on which a project had been approved was dolomitic.

4. The National Home Builders’ Registration Council and Housing Development Agency were not visible in the province.

5. There was no proper coordination and management of the beneficiary list.

6. There was a lack of dedicated policy to regulate the roll-out of the sanitation programme  including lack of commitment from both the national and province to fast track and upscale sanitation programmes

7. There was no evidence-based report to quantify the provision of sanitation services in the province

8. There was lack of monitoring of contractors, resulting in incomplete housing structures, non-compliance with regulations and project management capacity thus compromising quality.

9. Limited community consultation on the part of municipalities as it is a fundamental principle that targeted communities ought to be involved in all aspects of their housing and human settlements solutions.

10. Disaster-affected areas not prioritized – in Bushbuckridge Municipality bridges that were washed away following heavy rains were not rebuilt as a consequence school children are struggling to get to schools in the affected areas.

11. No policy in place to address the plight of backyard dwellers.

12. Continuing land invasion is affecting some of the municipalities due to lack of capacity and willingness to enforce by-laws

13. Inadequate capacity within some of the municipalities (Provincial inspectors accused of not doing enough to assist municipalities).

14. Shoddy workmanship on houses and toilets which remain unused due to poor quality.

15. Non availability of a quantifiable report on state owned land or private land in the province

16. Human Settlements (tendency on the part of the provincial department to just start projects without informing/involving local municipalities).

17. Need to strengthen intergovernmental relations and cooperative governance.

18. Lack of synergy and coordination between municipalities and the provincial Department of Human Settlements.

19. Non-monitoring and no assessment of Contractors.

20. Houses constructed without ablution/sanitation facilities

21. Poor access roads.

22. Difficulty in relocating communities for housing development for example, hostel dwellers.

23. Houses built on wetlands, proper environmental assessment not conducted Bureaucratic red-tape impacts and hinder compromises sound working relationship between municipalities and the province thereby local level impacting on service delivery.

24. Some municipalities accused the provincial department of being reactionary instead of being proactive in attending to some of the issues of concern.

25. There were still people residing in houses that had asbestos roofing. No arrangements had been made to re-house people on asbestos – free houses.

26. Role of private sector was not convincing.

 

5.8        Recommendations

 

5.8.1     It is recommended that the Minister of Human Settlements should:

 

1. Brief the Committee on the international treaty signed between China and South Africa relating to the project in Graskop area in Thaba Chewu Municipality.

2. Present to the Committee the final draft policy that would address backyard dweller housing because this has been a long standing issue.

3. Provide a report on the assessment of the Community Residential Units (CRUs) policy and any potential amendments thereto should be sent to the Committee for consideration.

4. Regularly monitor and evaluate the performance of housing institutions, such as the Housing Development Agency and the National Home Builders Registration Council, because of the overwhelming number of complaints in most areas that were visited by the Committee during its different oversight initiatives.

5. Urgently intervene with regard to Simile flats where the toilets structure was falling apart, separating from the main unit structure in Graskop at Thaba Chewu Municipality as this posed a risk and hazard to the lives of the dwellers.

 

5.8.2     It is recommended that the Minister of Public Works should:

 

6. Assist the disaster affected bridges in Thulamashe at Bushbuckridge Municipality (Ward 29, Kumane and Wisane villages) which were washed away by heavy rains.

7. Disaster affected bridge in eSandleni at Albert Luthuli Municipality.

8. Assist in transferring the dilapidating Graskop hostel from the previous government (pre 1994) to the Department of Human Settlements as it posed a huge risk and hazard to the hostel dwellers in endeavour to intervene and facilitate redevelopment/upgrading as per the Department of Human Settlements’ Community Residential Units policy.

 

5.8.3 It is recommended that the Minister of Basic Education should:

 

9. Assist in the provision of roofing at the school in eSandleni in Albert Luthuli Municipality, which was blown away during a disaster.

 

5.8.4 It is recommended that the national Department of Human Settlements should:

 

10. Assist the province and the municipality by addressing the issue of temporary relocation units. Emergency housing ought to be for short-term purposes as it offers no real protection against elements yet there were households who had been housed on emergency housing for prolonged periods.

11. Upgrade and rectify houses according to the current human settlements specifications.

12. Promote synergy and enhance coordination between municipalities and the provincial Department of Human Settlements.

13. Assist the 200 beneficiaries who were approved and later discovered that the land where the project would be developed was dolomitic in Thaba Chewu Municipality as this compromised their right to access state subsidy housing.

14. As an anchor department mandated with the sanitation function, urgently intervene and assist Graskop primary school in Graskop to have access to adequate and sustainable sanitation.

5.8.5 It is recommended that the Mpumalanga province should:

 

15. Eradicate asbestos roofing and replace it with a proper roofing system as this is a health hazard to communities (Nkangala District Municipality).

16. Compile a detailed report on land purchased (R95 million spent in 2008) by the province, which should include information on how much land has been utilised by each benefiting structure i.e. the municipalities and the Social Housing Association, the size of the land purchased for Mbombela and the specific locations of such land?

17. Ensure the provision of adequate qualitative and sustainable sanitation infrastructure to the communities and expand the capacity to roll-out and accelerate sanitation programmes. It is also recommended that greater priority should be given to Amsterdam, Dipaleseng, and Mkhondo municipalities and that the province urgently communicate with the municipality and ensure that the residents of Rooikopan are connected to sewer lines.

18. Provide a list to the Committee of all villages that benefited from sanitation provision managed through the Department of Human Settlements during the 2010/11 financial year in Nkomazi Municipality. The report should be forwarded to the Committee within a month after the receipt of the report.

19. Provide names of places where farm worker assistance projects would be constructed.

20. Provide detailed information on how Burn Stone Mine has assisted in the building of houses, including the number of houses built and the amount of the contribution towards each house.

21. Provide a detailed list of job opportunities created through housing delivery in the province, its impact on communities and types of skills transferred.

22. Strengthen public participation with the communities and in particular with the traditional leaders.

23. Update beneficiary lists of municipalities regularly.

24. Monitor municipalities and contractors when handing over houses as they are alleged to be coercing and bribing beneficiaries to sign happy letters even though houses show defects.

25. Ensure that more housing inspectors are appointed as the shortage of such capacity compromises the quality of houses delivered.

26. Provide a list of the projects to be unblocked with plans to unblock them.

27. Provide a list of informal settlements which should include clear plans and programmes on how these would be upgraded or eradicated.

28. Provide a report on how the deregistration of beneficiaries was done when the beneficiary could not be found or died before the allocation of a house.

29. Provide a detailed report on the Mpumalanga Housing Finance Corporation, including its role.

30. Provide a written response on how much was spent in addressing disaster-affected areas.

 

5.8.6     To Parliament:

 

31. The Mpumalanga based-members of the Committee, together with the municipality and members of the provincial committee in the legislature should conduct an evidence-based approach site visit to verify the 513 completed sanitation project units in Nkomazi and report to Parliament by March 2012.

 

Report to be considered.

 

 

28 FEBRUARY 2012                  PAGE: 119 of 203