Hansard: NA: Mini-plenary 4

House: National Assembly

Date of Meeting: 17 May 2022

Summary

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Minutes

UNREVISED HANSARD
MINI PLENARY - NATIONAL ASSEMBLY
TUESDAY, 17 MAY 2022
VOTE NO 3 AND 15 – COGTA
Watch: Mini-plenary

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PROCEEDINGS OF THE MINI-PLENARY SESSION – NATIONAL ASSEMBLY
CHAMBER

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Members of the mini-plenary session met in the on the virtual platform in the National Assembly Chamber at 16:30.

The House Chairperson (Mr C T Frolick) took the Chair and requested members to observe a moment of silence for prayers or meditation.

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, before we proceed I would like to remind you that this virtual mini plenary is deemed to be in the precinct of Parliament and it does constitute a meeting of the National Assembly for debating purposes only.

In addition to the rules of virtual sittings, the rules of the National Assembly including the rules of debate apply. Members enjoy the same powers and privileges that apply in a sitting
of the National Assembly. Members should equally note that anything said in the virtual platform is deemed to have been said to the House and may be ruled upon.

All members who have logged in shall be considered present and are requested to mute their microphones and only unmute when recognised to speak. The microphones are very sensitive and will pick up noises, which may disturb other members. When recognised to speak please unmute your microphone and connect your video. However, we are going to go into a loadshedding schedule very soon, so, if you find out that your connectivity is unstable when you are about speak, please disconnect your video and continue speaking on the microphone only.
Members may make use of the icons on the bar of their screens, which has an option that allows a member to put up his/her hand to raise points of order. The secretariat will assist me in this regard.

When using the virtual system, members are urged to refrain or desist from unnecessary points of order or interjections. We shall now proceed to the order, which is debate on vote 3 and 15: Co-operative Governance and Traditional Affairs Appropriation Bill.

APPROPRIATION BILL
Debate on Vote No 3 – Co-Operative Governance, Including Vote

 No 15 - Traditional Affairs:
The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS: Hon House Chairperson, Chairperson of the NationalHouse of Traditional and Khoi-san leaders, hon Ministers and Deputy Ministers, Deputy Ministers of Co-operative Governance and Traditional Affairs, Mr Obed Bapela and Ms Thembisile Nkadimeng, hon Chairperson and members of the portfoliocommittee, hon members, Chairperson of the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities, Chairperson of the Municipal Demarcation Board and its members, President of the South African Local Government Association, SALGA, Deputy

Chairperson of the Independent Electoral Commission, IEC, Members of the Provincial Executive Committees, MECs, directors-general of the Department of Co-operative Governance and Traditional Affairs, chief executive officer, CEO, of Municipal Infrastructure Support Agent, MISA, ladies and gentlemen, and compatriots.
Thank you for this opportunity to present Budget Votes 3 and 15, in honour of the millions of women and men who sacrificedso that we may realise a better life for all.
On the 10th of May we marked 28 years since the first democratically elected President made his inaugural address. On that occasion President Mandela reminded us that:
Out of the experience of an extraordinary human disaster that lasted too long, a society of which all humanity will be proud of, was born.
The recent floods robbed South Africa of 448 people. It has also destroyed over 6 500 houses and partially destroyed over 10 000 houses. As we speak, in KwaZulu-Natal alone, more than 7 000 people are housed in 91 shelters.

We wish to extend our condolences to those who have lost their loved ones. We also offer our sympathy to those whose loved
ones are still missing. We will not rest until each and everyone is rescued or accounted for. The floods also caused untold damages to schools, hospitals, clinics, roads, bridges and places of business, which we are still quantifying. We intend to rehabilitate and reconstruct all the damaged infrastructure so that we risk-proof it as we build back better. We have also been warmed by the empathy and solidarity displayed by millions of South Africans who have, individually and collectively, contributed to the 129 000 affected residents. We have also received support from the non- governmental organizations and private sector as well as the diplomatic corps from the continent and beyond. We would have loved to mention all of them by name, but due to time constraints, we are unable to do so.
IsiZulu:
Kodwa ke sithi nangomuso nize nenze kanjalo nakwabanye.
English:


 
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These disasters and calamities have worsened the situation in
relation to challenges of hunger, poverty, unemployment and
inequality. They also contributed to further depressing our
economy.
According to Stats SA over 55% of South Africans live below
the upper poverty line and 25% are experiencing food poverty.
Unemployment continues to rise, recording a 35,5%, which is
the highest over the past 15 years. Youth unemployment at over
70% continues unabated. Inequality also continues to increase,
with the Organisation for Economic Co-operation and
Development, OECD, telling us that the poorest 20% of our
households earn only 1,7% of the total income.
Thus, we must heed to the advice of scientists which tell us
that in future the eastern parts of our country are bound to
experience wetter conditions. This means that those parts will
be more prone to floods. On the other hand, the western parts
will be drier, meaning that they will be more prone to
droughts. We must, therefore, plan appropriately.


 
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But in addition to these floods, we have had floods last year
with Cyclone Eloise and also the covid pandemic, and together
they’ve actually worsened our situation in this country.
In addressing the effects of disasters in this past financial
year, we allocated R157 million from the Municipal Disaster
Relief Grant to address the aftermath of tropical storm Eloise
in the affected municipalities. The storms were accompanied by
summer season rains which led to the displacement of 3 200
poor people in Mpumalanga, KwaZulu-Natal, North West and
Limpopo.
We also allocated R221 million to deal with the crippling
effects of the protracted droughts in the Western Cape and
Eastern Capes. These resources complemented the efforts of the
provinces and municipalities to secure livestock feed and
improve the water supply.
Infrastructure and its maintenance play a major part in
building the resilience of communities. We must turn them into
climate-smart communities which care for the environment and
do not build in dangerous ways or places. This requires


 
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supporting municipalities whilst facilitating for the ramping
up of the capabilities and capacities of municipalities.
As part of the Municipal Support and Intervention Package
during the past Financial Year, 50 Civil Engineers, 15
Electrical Engineers, 15 Town Planners, 9 Assistant Provincial
Managers and 9 Provincial Managers from MISA were deployed to
various provinces across the country. These professionals are
supporting various infrastructure projects and are supported
by the 519 municipal officials who were trained by MISA in
this past financial year, in infrastructure management.
Additionally, a total of 382 young people were supported
through technical skills apprenticeships, learnerships,
graduate programmes and bursaries. This is complemented by
assisting some 100 young graduates in practical experience so
that they may complete their professional registration
processes. This is our contribution towards functional
municipalities that promote the growth of our local economies.
In further stimulating local economies, MISA has also trained
2 800 municipal officials in Labour Intensive Construction


 
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methods through the R50 million allocated by the Presidential
Employment Stimulus Programme.
Going forward, the Department of Co-operative Governance,
through MISA, will accelerate support to municipalities that
struggle in implementation. Such support will include the
R50,6 billion allocated through the Municipal Infrastructure
Grant, MIG, over the Medium-Term Strategic Framework, MTSF.
The grant will support municipalities in delivering basic
services like roads and social infrastructure for poor
households in 218 municipalities. Ten percent of this
allocation is directed at fulfilling the gap as it relates to
repairs and maintenance and an additional 5% will address
Infrastructure Asset Management Planning. This, we did because
a lot of these municipalities were not budgeting for repairs
and maintenance.
We remain concerned that 39 of our municipalities continue to
spend below the 70% benchmark in the third quarter. It is also
alarming that 30% of these municipalities are water service
authorities, meaning that in those communities the quality and
reliability of water and services continue to be of concern.
In implementing the District Development Model, DDM, we will


 
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work with MISA and the Department of Water and Sanitation to
support these 39 municipalities.
We have also prioritised the availing of capacities through
the District Development Hubs to the municipalities that are
Water Service Authorities. For us, water is a survival issue,
which is second only to oxygen. Of course, sanitation is
dignity, we cannot allow our people’s aspirations to be dimmed
by the challenge of water.
Whereas we have recorded progress in the implementation of the
District Development Model and the One Plans, we are finding
that the plans must go through a quality assurance process. We
have also found that the current intergovernmental framework
architecture may not be entirely adequate to facilitate the
One Plans and One Budgets.
We revised the Intergovernmental Relations Framework Act,
IGRFA, regulations to enable better joint planning. The
proposed revisions are currently in front of the State Law
Advisor after months of intensive and extensive consultations.


 
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As part of the DDM, we are also jointly hosting the post state
of the nation address Presidential Izimbizo, with the next leg
being at the end of the week in Mpumalanga.
We will also accelerate the implementation of the Eastern
Seaboard Development through the interdepartmental and multi
sphered project teams. Key projects include the outstanding
land audits, the integrated masterplan and the ongoing N2
project. We have also recently received assurance that SA
National Roads Agency, SANRAL, will take over the repairs of
the very dangerous and unmaintained R61 between Port St Johns
and Port Edward.
We have also received interest from local and international
investors. We have also finalised all the consultative
processes related to declaring parts of the Eastern Seaboard
as a region. Of course the Eastern Seaboard straddles two
provinces and four districts, so, it’s important that it
should be declared a region for development purposes. The
Minister for Agriculture, Land Reform and Rural Development,
in line with the National Spatial Development Framework,
Spatial Planning and Land Use Management Act, SPLUMA, has
agreed to urgently Gazette the declaration of relevant areas.


 
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This will be supported by a Special Purpose Vehicle which will
drive developments in that area.
Our existing cities, towns and developmental landscapes also
require focused attention. Thus, as part of the Integrated
Urban Development Fund Intermediate City Municipalities
Support Programme, we will accelerate rollout in eight
Intermediate City Municipalities. This will complement the
work we are undertaking under the Smart Cities Framework
which, Deputy Minister Thembi Nkadimeng, will elaborate on.
Suffice to say, these frameworks and plans must be
supplemented by practical projects which can bring about
quality jobs and livelihoods in the short term. One such
programme is the Innovative Waste Management Programme which
has employed 7 444 participants in two provinces since its
inception in December 2021. The participants are currently
engaging in solid waste management activities such as street
cleaning, litter picking and management of illegal dumping. In
this financial year we intend to create 8 238 additional jobs
in this area. This will be complemented by the revised
Community Works Programme.


 
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We will continue to monitor and implement actions which are
directed at addressing the issues that were raised by the
Auditor-General in her report. This, we shall do through the
forum we have established which includes the National
Treasury, the South African Local Government Association, the
Auditor-General and the provincial departments responsible for
local government and finances. Bringing the necessary skills,
capabilities and capacities to a local level are an important
lever by which we can address the issues raised by the AG.
We are also paying special attention to the Mangaung Metro as
well as the Enoch Mgijima and Lekwa Local Municipalities,
under section 139(7) of the Constitution, which was invoked in
Mangaung Metro in March 2022. This was after section 139(5)
invoked by the province in the metro in December 2020 did not
bear fruit. Consequently, a team of interdepartmental experts
has been dispatched to Mangaung. These come from the
Departments of Co-operative Governance and Traditional
Affairs, Human Settlements, Transport, Treasury, Water and
Sanitation, and MISA. The team and workstreams are expected to
turn around the dire financial status of the metro, address
the duly escalating political challenges while addressing the


 
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governance and administration challenges which include
consequence management.
Enoch Mgijima and Lekwa have been identified as financially
distressed and are challenged by governance and political
issues. Following Court Orders against the provincial
co-operative governance and traditional affairs, we have
placed the municipalities under section 139(7), working with
Treasury.
Since our last budget presentation to this House, we welcomed
the President assenting to the Local Government Municipal
Structures Amendment Act, which came into operation on the
1 November 2021. Amongst others, it brings into being an
enforceable revised Code of Conduct for Councillors. This
amendment provides for the MEC to remove a councillor from
office for a breach of the code of conduct. The amendments
were also introduced in section 79A of the Structures Act,
which prohibits Municipal office-bearers such as mayors and
members of executive committee, EXCO, or mayoral committee,
MAYCO, from being members of the Municipal Public Accounts
Committee, MPAC. We believe that this will ensure


 
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transparency, effective oversight and accountability over
council matters.
We will also submit to Parliament the Independent Municipal
Demarcation Authority Bill. The amendments to the Municipal
Demarcation Act are largely based on proposals received from
the Municipal Demarcation Board based on lessons learnt over
time. These lessons also form part of the 21-Year Review of
Local Government, which we shall conclude this year. By
utilising the 21-Year Review prism we shall be in a better
position to introduce further reforms.
During this month the National Assembly passed the Municipal
Systems Bill and referred it to the President for assent. This
Bill also standardises the processes related to the
appointment of municipal managers and managers directly
accountable to municipal managers. It also provides for
competency criteria for such appointments whilst prohibiting
the holders of such offices from political positions. We
firmly believe that this legislative intervention, together
with the provisions introduced through amendments to the
Structures Act, will address many of the governance challenges
that are facing the municipalities.


 
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On the 1st of November 2021 we successfully held our fifth
free and fair local government election. We also noted the
declining levels of voter participation where 23 million of
the 26 million registered voters voted. Following the
elections, we have also seen 70 municipal councils with no
outright majority, which could potentially result in
instability in these hung councils.
Last year we reported that we would remodel the Community
Works Programme, which in fact had been the main source of our
negative audit outcomes. We are pleased to say that from the
piloting of the remodelled Community Works Programme we have
already seen some improvements in the operational efficiency
of the programme. The savings realised through the remodelling
allowed us to increase the daily stipend paid to participants
from R97,50 to the current R110 per day. We have also
increased the target number of participants from 250 000 to
255 000 within the existing budget allocations.
This financial year we have allocated R4,3 billion to the
Community Works Programme. We intend to integrate the
Community Works Programme into the core work of the department
as we build community-level resilience and ensure that we


 
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support community initiatives in the context of the DDM
approach. We are confident that our new approach will ensure
sustainability development through meaningful work and
economic activity, and also through the training of the
participants.
The Department of Co-operative Governance is reviewing its
organisational design. This will enable the department to
entrench the District Development Model approach across three
spheres of government whilst building the resilience of
communities. Through these budget votes we are strengthening
the capability and capacity of municipalities, institutions of
traditional leadership, community organisations and all organs
of state to implement and mainstream inclusive disaster risk
reduction management strategies.
We are also drawing lessons from the all of society approach
we adopted in combatting COVID-19. Even though we have not
entirely won the battle, we take this opportunity to once
again salute you, the people of South Africa, who have heeded
our calls and applied difficult safety measures. We must
continue to apply the non-medical and preventative measures
including masking, sanitising, maintaining social distance and


 
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vaccination. Such sacrifices have contributed to building
resilience and minimising the costs and effects of COVID-19.
Unfortunately, of course, the measures we have adopted are not
always entirely understood and accepted by all. Consequently,
we have had 109 court cases since March 2020. So far 92 of
those cases have been finalised and only four of the orders
were in favour of the applicant. It means by and large the
courts and South Africans understood why we had to take such
measures.
I wish to conclude by acknowledging the progress recorded by
the National House of Traditional and Khoi-san Leaders. For
the first time in the history of the House it is under the
capable leadership of a woman, iNkosikazi Mhlauli. We are
confident that the landscape of rural South Africa will change
and the hopes and dreams of the rural masses will be realised
with the Invest Rural Master Plan as the lodestar.
The Master Plan was developed by the traditional leaders after
consultations with communities. It guides potential investors
and all of society with regard to the areas of community
investment, infrastructure and the economy.


 
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With regard to community development it prioritises health,
education, financial inclusion and food security. It also
prioritises investment in rural infrastructure including
Information and Communications Technology, ICT, renewable
energy as well as water and sanitation.
With regard to economic growth areas it prioritises
agriculture, tourism, manufacturing and enterprise development
amongst others. It is, indeed, a plan by the people for the
people. Thus, we intend to request government to integrate it
into the economic development plans of the country.
Amongst other progress areas is the implementation of the
Customary Initiation Act of 2021. It regulates the
registration of initiation schools so that it ensures that the
initiation surgeons are trained and competent, thus protecting
the initiates.
We have also recorded progress in the appointment of the
Khoisan Commission under the capable leadership of Professor
Nico Botha to facilitate for the formal recognition of the
Khoi-San communities and leadership. This will also add to the


 
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number of legally constituted tribal councils which according
to legislation should be completed by 31 March 2023. The
formula for determining the number of members of traditional
councils was therefore gazetted on 4 February 2022, giving way
for the legal constitution of traditional councils. Deputy
Minister Bapela will elaborate on this and other promising
plans in the traditional affairs space.
For now, I wish to thank all the people I work with and
request the House support budget vote 3 and budget vote 15
which allocates R350 billion and R545 million over the MTSF.
I thank you very much and hope that this will contribute to
the eradication of hunger, poverty, unemployment and
inequality.
Together we can do more. I thank you.
IsiXhosa:
Mnu F D XASA: Sihlalo weNdlu, uMphathiswa, ooSekela
baPhathiswa, uSihlalo weNdlu yeeNkosi namaKhoisan, isikhokelo
seSalga, abahlali abaphambili kwi ...


 
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English:
... Demarcation Board and the CRL Rights Commission, ...
IsiXhosa:
... maLungu Epalamente ahloniphekileyo
English:
From 3rd-4th of May 2022 the Portfolio Committee on Co-
operative Governance and Traditional Affairs met and
considered the 2022-23 Annual Performance Plans, Strategic
Plans and budgets of the departments and entities reporting to
it. This consists of the Department of Co-operative Governance
and Traditional Affairs, the Municipal Infrastructure Support
Agency, the Commission for the Rights of Cultural, Religious
and Linguistic, the Municipal Demarcation Board and South
African Local Government Association. The Department of Co-
operative Governance tabled its 2022-23 Annual Performance
Plans and budgets in the aftermath of heavy rains, flooding
and strong winds and landslides that devastated various
municipal areas in KwaZulu-Natal and the Eastern Cape, which
caused the loss of lives and damaged to property,
infrastructure and the environment. Having received a
comprehensive update from the department on the co-ordination


 
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of response and disaster recovery efforts, the portfolio
committee is now ready to also lend a hand of support by
visiting some of the affected areas. It will also be
imperative for the committee to monitor the three annual
performance targets envisaged under the National Disaster
Management Centre programme to ensure that they contribute
meaningfully towards enabling the provinces to deal with
effectively with the aftermath of the disaster.
The other annual performance targets of interest relate to the
department’s local government support and interventions
management programme. There is a legislative gap in respect of
clarifying and regulating the process of intervention by one
sphere of government into another as envisaged in section 100
and section 139 of the Constitution. The lack of clarity and
regulation often leads to the application of the intervention
process that sometimes worsen the problem it was meant to
solve. As a result, there are many municipalities that have
been under constitutional intervention, but show little or no
improvement. In this regard, the department’s Annual
Performance Plan proposes the tabling of an Intergovernmental
Monitoring, Support and Interventions Bill to address this
legislative gap. The objectives of the Bill are, among other


 
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things, to regulate the implementation of the processes
provided for in section 100 and section 139 of the
Constitution.
However, the Bill has been coming slow as it has been in the
pipeline since the time of the fourth administration. The
deadlines for tabling the Bill in Parliament have kept
shifting. It is the portfolio committee’s oversight duty to
ensure the department follow up on this long-standing
commitment to table the Bill. The portfolio committee knows
the introduction with effect from 1st October 2021 of an
implementation policy for community works programme in
response to the committee’s persistent demand for a clear plan
and timeframes for the resolution of legacy issues in this
programme.
This new model is still very much work-in-progress. It is not
yet succeeding in ensuring that stipends are paid on time and
that workers have adequate equipment to do the work. This is
creating a negative perception around the utility office
programme and raises questions on whether it is delivering
value for money. The department will do well to conduct an
evaluation and cost-benefit analysis of the programme, to


 
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assess whether it is serving its intended purpose and to
determine whether the cost incurred on this programme is
consistent with the benefit derived.
On the Annual Performance target of the SA Local Government
Association, Salga, the key message advanced was that local
government is inadequately equipped to fulfil its
developmental agenda. A number of root causes for this were
put forward. Amongst this, was that there are inefficiencies
and nonintegrated local government delivery mechanisms,
systems and processes to enable service delivery, contributing
to this, among other things, is in appropriation allocation of
functional roles between district municipalities and local
municipalities.
This was also raised strongly from the three district
municipalities recently visited by the portfolio committee in
the Free State province. Mention was made of the devolution of
certain legislated powers and functions from the districts to
local municipalities, resulting in the district not receiving
any government grants relating to this function. The districts
have called for the devolution of these powers and functions
to be revoked so as to enable them to perform their legislated


 
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mandates. As the custodians of the laws governing local
government, the portfolio committee is duty-bound to
investigate this matter further and make appropriate
recommendations.
A common theme across 2022-23 Annual Performance Plan and
budget presentations of the department, Salga, Municipal
Demarcation Board, MESA and the CRL Rights Commission was that
their funding models were not sufficiently responsive to the
responsibilities they are expected to fulfil. While the
portfolio committee is sympathetic to these funding
constraints and supports the augmentation of the budget
shortfalls, it is necessary to impress that the existing
budget allocations used more efficiently and channelled more
towards core service delivery objectives. Where allocations
seem disproportionately skewed towards administrative
overheads, there must be a coherent explanation as to why this
is the case.
In conclusion, the portfolio committee appreciates the
fruitful, cordial and constructive engagement with the
Department of Co-operative Governance and Traditional Affairs,
the CRL Rights Commission, Salga, Municipal Demarcation Board,


 
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MESA on their 2022-23 Annual Performance Plans, Strategic
Plans and budgets. We also would like to appreciate the
contribution of committee members as well as support staff for
the committee. The committee supports the Budget Votes 3 and
15. Thank you very much.
Mr C H M HUNSINGER: Hon Chairperson, Disaster Management takes
up a relatively small portion of the budget of the Department
of Co-operative Governance.
But in the past two years it has consumed the lion share of
the Minister and the department’s attention.
As we speak, another national disaster is unfolding. Within
the next month Nelson Mandela Bay will reach Day Zero. The
taps are going to run dry.
Both the municipality and the Eastern Cape Provincial
Government have failed to put effective contingency measures
in place.


 
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The water crisis in Nelson Mandela Bay is to a large extent a
man-made crisis, a political crisis and it is made worse by
neglect and ineptitude.
There are other disasters in the making. Sol Plaatjie,
Manguang, Emfuleni, Msunduzi, Ugu – the municipalities that
have become by-wards for state failure.
To be sure, the National Disaster Management Centre must come
to the assistance of the people of the Bay, and soon.
But managing the consequences of state failure at every sphere
of government cannot become the main job of the Department of
Co-operative Governance.
Neither can ‘national government intervention’ become the
default response to all case of provincial and local state
failure.
There are hard limits to the capacity of national government,
even in disasters and emergencies. Just consider what has
happened recently in the flood-ravaged KwaZulu-Natal.


 
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Despite the declaration of a National State of Disaster,
electricity and water is yet to be reconnected to scores of
communities across the province.
The services that have been reconnected are unstable. And, in
any case, it’s not clear that the progress that is being made
is due to the national government’s involvement.
There has been an extremely slow start to the work of the Ad-
Hoc Committee established by Parliament to prevent the looting
of Disaster Relief Funds.
The lesson is that the centralisation of power, and the
concentration of resources, in the hands of national
government is not the solution to state failure.
Not just because national government lacks the capacity to run
the country from one centre of power.
But because in many instances national government policy is
the cause of the problem. Doubling down on the implementation
of these policies will make things even worse.


 
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These are the problems ignored by the government’s District
Development Model and its main prospectus in favour of more
centralised government.
The Preferential Procurement Policy Framework Act has made
every item and service needed by a municipality more
expensive.
By narrowing the pool of available suppliers, municipal
contracts are set up for an extremely high rate of litigation
and failure.
This is what Moeletsi Mbeki means when he describes Black
Economic Empowerment, BEE, as ‘institutionalised corruption’.
The legislative framework for ‘institutionalised corruption’
was not created by provinces and municipalities, but by this
Parliament.
And so, the DA has formulated draft legislation in favour of a
non-racial procurement policy, one that will allow all state
entities to procure the best value for money.


 
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But the problems that national government bequeaths to
provinces and municipalities aren’t limited to bad policies
and bad laws.
Often national government simply fails to fulfil its own core
functions, and municipalities are then left to deal with the
consequences.
In large parts of the country, including the metros, the
criminal assault on electricity installations and
infrastructure is reaching crisis levels.
This is no longer just a matter of policing. It is a matter of
co-operative governance.
Recently, a criminal gang in Johannesburg took control of an
entire electricity substation, operating with mere military-
type efficiency.
Most cable thieves now have the upper-hand over police
stations when it comes to logistics and intelligence.


 
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While station commanders scramble to find vehicles to dispatch
to the scene of cable theft, the criminals have all the
resources needed to do their job.
The assault of municipal infrastructure has devastating
consequences for communities and basic service delivery.
Think of how many substations, feeder cables and protection
gear forming part of municipal reticulation networks are being
operated way out of their own life cycle.
Now add to the effect of poor maintenance, the extreme wear
and tear caused by load shedding, the unavailability of
qualified electrical engineers. Only then does it become clear
how fragile the infrastructure is that these criminals are
striking at, and why communities suffer power outages beyond
load shedding.
The DA has made concrete proposals on how service
infrastructure can be secured against criminal attack,
including the establishment of specialised units.


 
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These measures do not require national government to exercise
more power and control, but to use its existing powers, and to
optimise its current resources.
Lastly, in many instances the answer to better service
delivery is the exact opposite of centralisation.
And so, the City of Cape Town is better able to manage the
rail network than the National Department of Transport.
With the go-ahead of National Treasury, the City will now
complete a feasibility study into taking over commuter rail
network.
If devolution of powers and functions can lead to better rail
services for commuters in Cape Town, surely Mayor Geordin
Hill-Lewis deserves the Minister’s support.
As my colleague hon Eleanor Spies will point out, the budget
and strategy of the department do not seem to match the
commitment required from the department to fulfil its core
function. Therefore, the DA cannot support this vote. I thank
you.


 
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Ms H O MKHALIPHI: Thank you very much, Chairperson.
Chairperson, the EFF reject Budget Vote 3 and 15 of Co-
operative Governance and Traditional Affairs. As we speak here
today, Chair, departmental report indicates that 64
municipalities in the country are considered high risk and
dysfunctional while 111 municipalities are considered medium
risk but also highly dysfunctional.
There are only 16 municipalities that are considered stable in
this country. Oh, you are a big joke. A functional state of
municipalities has been public knowledge for a while, and yet,
there seems to be no appetite for fixing the mess that is in
these municipalities by the ANC.
Year after year, the Auditor-General makes almost the same
findings about these municipalities. These are lack of
internal controls, inability to attract and retain skills
staff, deeply embedded corruption, inability to manage finance
and to raise funds. Yet, there is no overarching vision to
change these inefficiencies in municipal governance. There is
little appetite in government for relooking at a structure of
municipal funding, which favours more urban municipalities


 
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where residents are able to pay their rates and still finance
the operations at the municipalities.
Rural municipalities, Chairperson, do not have that luxury and
are often only able to pay salaries and deliver the bare
minimum when it comes to services. The Department of Co-
operative Governance and Traditional Affairs has failed to
provide decisive leadership on the dysfunctional
municipalities and the management are pushing away the
officials with experience in order to accommodates their
friends and close cronies in the department under the
Minister’s favourite Director-General. And under her
leadership victimisation of senior officials is the order of
the day. As a result, well experienced senior officials are
leaving the department.
The most disgraceful of this municipality failures are the
lack of agency in which the disaster of KwaZulu-Natal, Eastern
Cape and North West has been handled by both the department
and the portfolio committee. Members of the portfolio
committee have on several times requested to the committee to
do oversight in KwaZulu-Natal, Eastern Cape and North West but
all these has felt on deaf ears. We know very well,


 
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Chairperson, on what is the reason. It is because the ruling
elite does not care about the poorest of the poor who are
affected by the recent floods. Residents who reside in areas,
which are not suitable for human settlement have no place to
stay. And it does not look like they will be getting any
assistant from anyone in the government any time soon. You
know why? Because these poorest of the poor, they don’t matter
to the elite known as the ANC.
Both the committee and the department have deserted our
people. Minister, you are custodian of the Disaster Management
Act but the disaster management within the department under
your leadership is a disaster itself.
We, recently conducted oversight in the Free State,
Chairperson, and the state of municipalities in that province
is shameful. In all 23 municipalities of Free State, you find
majors fighting with municipal managers for the control of
tender opportunities. These happens while our people are
crying out for services.
In Mangaung, ageing infrastructures and lack of service
delivery have rendered resident barriers in their own


 
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municipality. Nothing moves here, and yet, there is no
intervention of kind from the department. This department is
toothless.
IsiXhosa:
Iyatyhafisa nje ...
English:
... in short, Chairperson. Mayors and speakers have become
rogue as demonstrated by the conduct of the Speaker of the
Makhuduthamaga Local Municipality who gave orders to an
opposition Councillor, Maapea Mosako of NCC to be handcuffed
and tied to a steel pole for merely demanding accountability
for the municipality. Two impact, Chairpersons, to the
Mogalakwena Local Municipality in Limpopo, Chairperson, have
been killed and the suspicion is that they were killed because
they were demanding accountability on corruption that is
sinking in that municipality.
The Masilonyana Mayor is arrested as we speak. And his
municipal manager is under investigation for R5,9 million for
security company belongs to him and the former major. And yet,
he was given a security tender for the municipality. The


 
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municipality manager who is there in that municipality, he
does as he pleases in that municipality with no consequences
or no action against him.
This is proven by the investigation, which is taking forever
while the abuse of the municipality funds continues on daily
basis. The committee work programme has been used as a tool
for looting and has not had the intended outcomes of
empowering people and alleviating poverty. These concerns are
always dominating portfolio committee when we are engaging
with the department but it is clear both the Minister and the
Director-General have no appetite to curb such corruption. The
question then arises, who is benefiting under this looting
from this programme? Time will tell. Chairperson ...
IsiZulu:
... kungashona ilanga ...
English:
If I were to mention all rotten things that are happening in
municipalities under the ANC, in short, the ANC has turned
municipalities into dense of hardness thieves who are cruel,
vicious and dangerous. The painful part is that poorest of the


 
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poor are the one who must face hardship and suffered the most.
And thieves are in control in municipalities.
Chairperson, as I conclude, we would like to commend people of
Ward 3 in Phokwane in Northern Cape and Ward 5 in Mafikeng who
rejected the ANC and voted for the EFF in the recent by-
elections. People were simply communicating that ...
IsiZulu:
... izinto zishintshile ...
English:
... in Ward 3 in Phokwane and Ward 5 in Mafikeng. So
therefore, Chair, we are rejecting this budget as the EFF.
Thank you very much, Chairperson.
The HOUSE CHAIRPERSON (Mr C T Frolick): Thank you, hon member.
The next speaker is the hon Princess Buthelezi. Hon Buthelezi,
are you there?
Mr N SINGH: Chairperson, it seems that ... [Inaudible.]
[Interjections.]


 
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The HOUSE CHAIRPERSON (Mr C T Frolick): I will then call upon
Inkosi Buthelezi to deliver the speech.
Mr N SINGH: Hon Chairperson, I think both of them are having
connectivity problems in KwaZulu-Natal. Can I do it on behalf
of hon Princess S A Buthelezi?
The HOUSE CHAIRPERSON (Mr C T Frolick): Yes, please proceed,
hon Singh.
Mr N SINGH: Hon Chairperson, we have strong institutional
mechanisms brought to life in terms of our Constitution, with
the sole purpose of strengthening democracy and building on
the vision of a united nation. However, these institutions
cannot become yet another forum to line the pockets of
officials. What purpose do these institutions serve if the
people of South Africa do not physically benefit from their
work?
The Commission for the Promotion and Protection of the Rights
of Cultural, Religious and Linguistic Communities, CRL Rights
Commission, has a critical duty in terms of our Constitution.
It is undeniable that our beloved country is facing political


 
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and social turmoil and now, more than ever before, the CRL
Rights Commission’s mandate to promote unity within cultural,
religious and linguistic communities, is essential.
The commission must therefore function optimally and we need
to ask ourselves whether the commission is honestly serving
the people of South Africa. Although the IFP fully endorses
the portfolio committee’s view that the funding of the CRL
Rights Commission must be on par with the scale of duties the
commission has to fulfil, we cannot accept that 65% of the
commission’s budget is allocated towards internal
administration instead of service delivery. This fact cannot
and should not be accepted.
The IFP has consistently and adamantly called for the
strengthening of co-operation between traditional leaders and
formal governance structures. Traditional leaders speak on
behalf of millions of South Africans and they cannot play
second fiddle in the developmental agenda. The IFP therefore
welcomes the publication of guidelines on section 24 of the
Traditional and Khoi-San Leadership Act, which regulates
partnership between traditional leaders and government.
However, as the IFP, we must stress that such partnerships


 
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should provide for true co-operation and not only pay lip
service to the Act.
The IFP also strongly agrees with the portfolio committee’s
recommendation that a cost-benefit analysis of the
government’s Community Work Programme must be undertaken. We
remain highly concerned that, despite the fact that 85% of the
department’s funds for programmes are allocated to this
programme, it is not serving its critical purpose which is to
create employment opportunities in rural communities. The
people of South Africa deserve answers and deserve an
accountable, transparent and responsible government.
Furthermore, there was a media clip this morning of, I think
it was Amathole Municipality, that is writing off almost a
billion rand in unpaid service charges. The question is, what
systems do they have in the first instance to apply the user-
pays principle? Why do they have to wait when things reach
such critical proportions to then apply for write-offs which
is at the detriment of service delivery in that particular
municipality? Surely, hon Minister, we have a National School
of Government and we have a Department of Public Service and
Administration, and to this end, qualified financial officers


 
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should be drawn to service municipalities or to work within
municipalities. Many of the problems with regard to poor audit
outcomes are as a result of financial officers not doing their
basic or not performing their basic functions of keeping
records and getting things straight in terms of the Municipal
Finance Management Act, MFMA. Hon Minister, this is an area
that you need to look at quite seriously so that we can get
qualified people to assist in the management and
administration of the finances of municipalities.
Finally, hon Minister, I see that the MEC of KwaZulu-Natal has
been redeployed to your department. I must say he was trigger-
happy when it came to applying section 139 to municipalities.
I hope that, that will stop now because there was a tendency
to apply 139 in certain municipalities which were not managed
by the national ruling party. I hope you can look into this
and that the new MEC won’t pull the trigger all the time. We
will support this Budget Vote. Thank you, hon Chairperson.
Mr I M GROENEWALD: Hon Chairperson, “The first lesson of
economics is scarcity: There is never enough of anything to
fully satisfy all those who want it. The first lesson of


 
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politics is to disregard the first lesson of economics”. This
was said by the economist, Thomas Sowell.
In the postlockdown economy of local government, the reality
on the ground must be looked at, where the people of South
Africa had been hit hard due to the fading economy, especially
in the local sphere of government, and is still placed under
further pressure due to rising costs in fuel and other input
costs.
The declining economy, with rising costs, will further result
in a loss of employment that will result in less income for
local government. Local government is of the view that by
raising levies and taxes ... will result in a revenue
enhancement. Yet, it will reach a point where that is not the
case, if you study the Laffer Curve, which shows the
relationship between tax rates and the amount of tax revenue
collected by governments. The curve is used to illustrate the
argument that, sometimes, cutting tax rates can result in an
increased total tax revenue.
Given the scarcity of revenue and financial resources, it is
of paramount importance that municipalities focus all their


 
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efforts on the creation of a business-friendly environment to
attract investment, especially from small, medium and micro
enterprises, SMMEs. Apart from the broadening of their revenue
base, it will also stimulate local economies and create much-
needed jobs in our communities. Specific preference must be
given to prioritising infrastructure collapse. The Minister
says that the Municipal Infrastructure Support Agent, Misa,
sends qualified engineers to various municipalities. The point
must be raised as to why the municipalities never appointed
such engineers in the first place.
It is, however, not possible under the ANC government to
create an environment for prosperity. The ANC is a selfish
government that only cares about money and how much they can
annex in levies and taxes rather than in putting money back
into the pockets of ordinary law-abiding citizens of South
Africa. The ANC wants to be populistic and campaign for votes
rather than admit their failures as government. The ANC is not
a caring government.
Local governments should be able to recognise the opportunity
cost in these daring times and not make populistic decisions.
Local government must understand the fact that it isn’t


 
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business as usual, and make provision for economies to grow,
and put policies in place so that there is relief, even for
the elderly and disabled citizens, and not only for those that
are homeowners but for those that are renting or have a
usufruct claim.
Local government must stop spending money on big billboard
marketing and ANC ideology, and stop telling citizens that
everything is going to be okay, even though we know that
infrastructure is collapsing, financial management is
crumbling and service delivery is nonexistent.
In the Green Drop audit it is reported that municipalities are
responsible for putting more than 1,5 gigalitres of raw
sewerage into our fresh water resources. This is equal to
62% of the total volume of the Vaal Dam. No one plan can
address this if there is no political will, hon Minister.
On 9 December 2021, the Deputy President answered a question
posted to him by the FF Plus as to why government’s
outstanding municipal accounts had not been paid. He answered
that the reason was that municipalities could not deliver


 
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correct accounts to government and it would be paid as soon as
they had the correct accounts.
If the Deputy Minister, as Leader of Government ... gives such
an answer, municipalities must take note that they should take
extra care in delivering correct service accounts to all
communities before communities take the advice of the Leader
of Government ... What is good for the goose must be good for
the gander. On the other side, I would advise government that
they set an example. Therefore, we urge that all government
debt must be settled within 30 days, especially their service
accounts to municipalities.
Afrikaans:
Agb Voorsitter, die bewyse van die ANC se onvermoë om te
regeer is voor die hand liggend. In plaaslike regering onder
ANC beheer, sal jy korrupsie en bedrog vind, nepotisme,
munisipale bestuurders wat groter salarisse as die President
van Suid-Afrika ontvang, brandweerwaens sonder water soos in
Kgetlengrivier Munisipaliteit, swak finansiële bestuur,
wetteloosheid, tenderpreneurs, kaderontplooiing, spookwerkers,
interne gevegte, swak leierskap, intimidasie en algemene
kriminaliteit.


 
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Die bewyse lê in artikel 106 verslae, Ouditeur-generaal
verslae, forensiese ondersoek verslae, die Groen Druppel en
Blou Druppel verslag en soveel ander.
Wat jy nie in ‘n ANC regering sal vind nie is, infrastruktuur
instandhouding en ontwikkeling, ekonomiese groei,
gevolgbestuur, onpopulistiese besluite in die beste belang van
die dorp en al sy gemeenskappe, Batho Pele, suksesvolle
beleggingsprojekte, goeie besigheidspraktyk, waardes en
profesionaliteit.
English:
The hon Minister, in her opening today, alluded ... the public
... how many interventions the department made in local
government and is proud of these deployments. Hon Minister,
this is proof that local government is failing miserably. The
time has come for communities to reprioritise representation,
rather than government wanting to reprioritise communities,
again. The ANC government’s promises can be seen, year after
year, in the ever-increasing decay of local government. Thank
you, Chair.


 
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The DEPUTY MINISTER OF COOPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS (Mr K O Bapela): House Chairperson, hon members,
Minister Nkosazana Dlamini Zuma, Deputy Minister Thembi
Nkadimeng, Chairperson and Deputy Chairperson of the National
Provincial House of Traditional and Khoi-San Leaders, the
SALGA leadership, ... [Inaudible.] ... Commission and the
Demarcation Board leadership present, ladies and gentlemen,
the Traditional and Khoi-San Leadership Act 3 of 2019 was
signed into Law by the President to commence on the
1 April 2021 and this is a major milestone for the Traditional
and Khoi-San leadership sector.
In March this year, we launched the awareness campaign on the
National Khoisan Commission, which was held in Cape Town as a
symbolic venue and place where the first disposition of land
and the first clashes and battles between the indigenous and
the settlers took place in 1657. The commission is tasked with
the responsibility to deal with applications for the
recognition of the Khoisan structures and their communities.
Some community members have already submitted their
applications and the commission continues to receive more
applications, which process will end in March 2024 and hope


 
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that a lot of them will then take advantage of this particular
activity.
Amongst other priorities, the implementation of Traditional
and Khoi-San Leadership Act, TKLA is to address the current
challenges of our Traditional Councils not being legally
constituted. Our enemy is now also still there, unfortunately,
which is the high number of activities arising from the
customary initiation practice and to eliminate the illegal
schools and the illegal traditional surgeries.
As we are approaching the winter initiation season, our plans
and energies will be focusing on saving and protecting the
lives of young people who are about to undergo the cultural
practice of the initiation. Our objective as government is
zero death, as one death is one too many. This we can achieve
through the provision of the law, and we also need the
traditional leaders to work together with parents, communities
as well as other social partners.
We are glad to announce that the Customary Initiation Act was
elected in 2021 and commenced on 1 September 2021 as a legal
tool that is now available to assist government to achieve


 
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this objective of zero death. As a critical part of
implementing this Act, the Minister established the National
Initiation Oversight Committee at the national level in
October 2021 to oversee the implementation of the Act.
We appreciate also the provinces that have started
establishing the Provincial Initiation Coordinating Committee.
We are closely monitoring the over 60 000 initiates in
Mpumalanga who are under going to initiation this year. They
are already in the schools. We are however worried as we
observe the rise of illegal initiation schools, it’s still
rampant. We are on high alert due to the trend of abductions
that are unfortunately still taking place.
Sadly, as we present this Budget, we have received report that
13 initiates have died in Mpumalanga, thus reversing our
objective of zero deaths. We are reversing our objective of
zero deaths, and we send condolences to their families. As
other children will be undergoing the initiation in June in
Limpopo, Eastern Cape and the Free State, we will also be
putting these provinces on high alert as we are now doing in
Mpumalanga.


 
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Hon members, in March last year, Cabinet resolved on the
processes of consultation on the question of the Communal Land
Tenure, which process is led by the Department of Agriculture,
Land Reform and Rural Development, working with the Department
of Traditional Affairs. These consultations were meant to
cultivate in the convening of the Land Summit of which a
resolution was taken at the Indigenous Indaba Health in 2017
to have a Land Summit that discusses and resolved on 13% of
the land.
Cabinet has announced that the Land Summit will be held later
this month. This is after extensive consultations of various
stakeholders conducted, such as the Provincial Houses Congress
of Traditional Leaders of South Africa, CONTRALESA, National
Khoisan Council, civil society academics and land experts. The
Department of Agriculture, Land Reform and Rural Development
and the Department of Traditional Affairs assist with the
preparatory work in order to ensure that the planned summit is
successful.
With our continuous engagement with the traditional leaders
and whether it is just to resolve challenges that have raised
over the time with government, President Ramaphosa established


 
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an Inter-Ministerial Task Team, IMTT chaired by the Deputy
President that will focus on the resolution of these matters.
The IMTT is splitting to the following within streams. One,
advancing land ownership, tenure rights and fast tracking
socio economic development of rural communities. It will be
led by the Minister of Agriculture, Land Reform and Rural
Development. That’s where the Minister of Mineral Resources
will also be included to dissolve in all those particular
issues of economic development.
Building institutional capacity and ensuring support to
traditional leaders will be led by the Minister of Finance. I
think on this one many of the hon members during the
appearance of the committee will be complaining about the lack
of funding to it, its inadequate, the house is not adequately
funded, CRL is not adequately funded. And, the traditional
leaders also have been complaining about issues of the tools
of trade. We therefore hope that will resolve a number of
issues under this particular work stream.
The third is the advancing infrastructure investment and
skills development in rural communities, which will be led by
Public Works and Infrastructure. The Minister spoke about the


 
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Invest Master Plan which still has to be included as a
programme of government will also help us in beginning to look
at investment in that area because for you to attract
investment in rural areas, you must deal with the
infrastructure challenges.
The fourth one is the promoting unity, social cohesion and
nation building in rural communities led by the Minister of
Sports, Arts and Culture. That’s where the traditional leaders
would also add their voice to issues that are of a challenge
of social cohesion in the rural areas in particular, working
with other institutions.
The fast tracking, which is the last work stream, is the
finalisation of policy, legislation and constitutional matters
which will be led by the Minister of Justice and Correctional
Services. On fighting gender-based violence, there is an
initiative by the Deputy Minister of Sports, Arts and Culture
who is collaborating with other Deputy Ministers, including
us, to focus on areas where there are high incidents of
gender-based violence and femicide. Especially, focusing on
the rural areas, whilst everybody is focusing on ...
[Inaudible.] ...


 
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The area of Lusikisiki in the OR Tambo District Municipality
was visited in March this year as a known area of rape
capital. It has the highest act of violence against women and
children. It is a crime against our common humanity and we
need to deal with those particular challenges. We are working
together with the traditional leaders on this problem and will
be spreading it to other areas where we will then be working
in ensuring that the traditional leaders in those areas are
there.
In the Investment Rural Master Plan, the Minister has already
engaged adequately on it. I just want, as I conclude, to say
that the ARL has an allocation of R47 million as a Budget and
they have just completed engagements and investigations on the
religious abuse. The other programme that they will be
embarking on, which they have started with the Eastern Cape is
around initiations as they did in Gauteng, they will go in
there, understanding the challenges and also advice on areas
of interventions so that we can save lives.
The implementation of the TKLA and the implementation of
cultural initiations are all supported by the institutional
support with a R91 million that goes to it. But then, all


 
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other programmes are all included at that. Therefore, we will
also be working to mobilise traditional leaders to really work
within the District Development Model and ensuring that their
role is well defined so that we would then work as a
collective in that.
With that Chair, I will just say that the road will not be
easy. We will encounter challenges, but we will overcome them
and move on in making sure that the traditional leaders and
communities will experience development to ensure that quality
of life improves for the better in the rural areas. Thank you.
Mr V ZUNGULA: Chairperson, the Department of Cooperative and
Traditional Affairs, Cogta is critical as it deals with the
institutions that engage directly with the citizens. It is
therefore imperative that this department has got clear set
programs to uplift traditional and religious institutions, and
municipalities to best serve the people. This would ensure
citizens needs are heeded to by these institutions.
Traditional leadership must not be ceremonial. Traditional
leadership must play a meaningful role in the development of
the country. This would be achieved by also increasing the


 
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number of permanent members in the House of Traditional
Leaders. In all areas under traditional leadership, the budget
must be administered by the chief. The chiefs need to be more
active in the promotion of the indigenous languages and
traditions, so as to best preserve our heritage. Chiefs can’t
be made non entities by taking the management of the budget of
rural areas to councillors, and the chiefs has no say about
the development ...
IsiXhosa:
... kodwa ngumhlaba wayo.
English:
Rural development is critical to ensure mass migration for
cities is reversed. The economy of rural areas must circulate
amongst the people in those rural areas, and the people must
be the primary beneficiaries. There is land and the government
must provide mechanisms for funding in all villages. We can’t
have people in villages with gardens and ploughing fields, but
they buy the most basic produce from supermarkets. People
should plough fields and the government must provide.


 
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The church plays a critical role in shaping the moral fibre of
the people. Government must deal with the bogus churches who
prey on people’s beliefs. Indigenous churches must be
supported by a by all means possible. Cogta must lead in
protecting the faiths of our people, particularly the
indigenous churches that are ignored and side-lined. It can’t
be that in South Africa, AmaNazaretha are still forced to cut
their hair and their beliefs are violated, whereas the beliefs
and practices of other faiths are protected.
IsiXhosa:
Inkolo yethu yakwaNtu ...
English:
... must be protected and its dignity affirmed by the
government. Government can’t ignore our indigenous faiths, but
prioritise foreign religion that come country. The Commission
for Rights of Cultural & Linguistic Communities must protect
all faiths and hold accountable ...[Interjections.] all
faiths. It must not appear to be targeting certain Christian
leaders in lastly chain would like to wish all Apostles as led
by ...


 
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IsiXhosa:
... uNgcitshane, uNkwenkwezana, uMev’amhlophe ...
English:
... the Chief Apostle Nongqunga, a successful Apostle Day.
IsiXhosa:
uThixo ophilayo, uThixo wabaPostile abenani ngale mini
ikhethekileyo, ingcwele.
English:
I thank you.
Ms P P XABA-NTSHABA: Hon Chairperson, greetings to the hon
Minister, Deputy Ministers and hon members. I rise on behalf
of the ANC to support this Budget Vote 3 and 15. This Budget
Vote addresses the key issues that the people of South Africa,
in their local communities are concerned about. The issues of
unemployment, social cohesion, and social development are very
important. The government must address them properly.
This Budget comes against the backdrop of the Economic
Reconstruction and Recovery Plan, that was announced by the


 
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President following the negative impact of COVID-19 not only
community life, but even on our economy, which was already
struggling. It also comes at the time when there is food
insecurity in our community the following the July social
unrest last year, and now the rising food prices due to the
war in Europe. Government must work together with other
stakeholders, such as community leaders, businesses,
traditional leaders, and faith-based organizations within the
community to ensure that communities maintain harmony and
social cohesion.
We welcome we welcome the fact that, the Community Work
Programme continues to be a priority in the budget in the
medium term. The allocation will increase the from
R4,3 billion from 2022-23. In 2024-25, it will be
R4,5 billion. We are concerned about the challenges around the
Community Work Programme, CWP which results in delayed payment
to participants which causes the incomplete projects. This
must be resolved to ensure that the CWP does what we wanted it
to do, and that is to provide short-term employment in poor
communities and ensure that youth participants acquire skills,
in order to access the permanent jobs in the labour market.


 
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IsiZulu:
Sihlalo namalungu ahloniphekile kuyajabulisa lokho ukubona lo
Mnyango unogqozi lokukhuthaza omasipala ukuthi banikezele
abantu bakithi intuthuko ebafanele, kubantu basemakhaya,
basemadolobheni nakumakhosi akithi endabuko nokuvuselelwa
kwamasiko ethu. Siyikomidi sike sayokwenza inhlolomvo
esifundazweniu saseFree State lapho sithole khona iNkosi
uNdabezitha waseMaluti a Phofong obekhala ngokuthi kunomuntu
ozibiza ngenkosi kepha ongeyona inkosi ontshontsha umhlaba
wakhe.
Siyacela ukuthi uMnyango noNgqongqoshe kebazame ukuthi
bancedise inkosi ukuthi iphume kulo bunzima ebhekene nabo.
Ngakho ke siwuKhongolose sikhala kanye nabantu baKwaZulu-
Natali abehlelwa umshophi kanye nabase-Eastern Cape nabo
ngokunjalo, abehlelwe umshophi wokuvinjezelwa yizikhukhula
baze balahlekelwa izihlobo zabo, imizi yabo nakho konke kwabo
akade benako. Sithi ke siwuKhongolose siyasexhasa isabiwomali,
Sihlalo. Ngiyabonga.
Mr A M SHAIK EMAM: Chairperson, the NFP notes the Budget Vote
3 and 15 tabled here today. The NFP will support this Budget
Vote. However, I wish to raise the following concerns. Hon


 
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Minister if you remember through your Chair, last year
sometime I requested that we provide a comprehensive list of
all the contracts that have been awarded in the local
municipalities particularly in KwaZulu-Natal in the last year
or two, names of the companies, names of the directors and the
value of those contracts including cost per item to see that
we’ve got value for money.
But more importantly, to introduce a transparent and credible
process. For on a monthly basis we could advertise these
contracts that have been awarded to ensure that we get value
for money and it is not exploited by a few people as hon
Mkhaliphi said from the EFF, on how the Black Economic
Empowerment, BEE processes are being exploited in the country.
I also want to raise my concern, I thought that in introducing
the District Development Model, I thought we were actually
going to be cutting the cost of administration. In fact, I
thought we were going to be one of the countries like Canada
where you have a two tier government the national and the
district and remove the rest, so more money can go towards
delivering services.


 
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But now it seems like we are heading for four tier of
government, which means more money will be spent on
administration. Those that don’t perform at the local
government level for now, means district level will come to do
exactly the same thing. Like the oversight mechanisms we have
in the country. Every sphere of government conducts oversight
despite that, the delivery of services is not welcome.
The other problem Chair is the fact that, the amount of
collusion and corruption that is taking place on the
procurement process. Right now as I speak to you, the control
that mayors and deputy mayors have in the local government
level. The collusion that takes place. The meetings that are
taking place to overthrow other political parties. The amount
of money that is changing hands, is the reason why we cannot
deliver our services to the people on the ground. Until you
have an independent process, entirely independent where no
politician, no mayor, deputy mayor, no political party is
involved in the appointment of officials, chief financial
officers, municipal managers, I think you will continue to
have what we have today and that is one of the lowest levels
of delivery of service. That is why we tend to have so much
... [Inaudible.] The other problem that we tend to have is


 
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that, if you look at the issue ... [Interventions.] The NFP
will support the Budget Vote. Thank you.
The DEPUTY MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS (Ms T Nkadimeng): Hon House Chairperson, the Minister
of Co-operative Governance and Traditional Affairs, Dr
Nkosazana Dlamini Zuma, Deputy Minister, Obed Bapela, hon
Chairperson of the National House of Traditional Leaders, Mama
Mhlauli and hon members good evening. It is my honour and
privilege to join the Minister in presenting the budget of the
department. I want to thank my predecessor, hon Parks Tau, for
the work done in trying to improve the capacity of the
department and the foundation for the work done to ensure the
performance of local government and ensuring that local
government does become everybody’s business.
I know that my predecessor did participate in the previous Co-
operative Governance and Traditional Affairs Budget Votes in
line with our mandate, but also guided by the departmental
strategic plan.
Since my arrival in the department, I have had the opportunity
to relook in the work that he has done, but also got myself


 
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acquainted with the departmental core mandate, key concerns
and challenges, but also to shape and guide the District
Development Model, DDM.
This is an effort to see an effective and efficient way of how
local government through an integrated approach of government
needs to run
To this effect, this Vote is rightfully premised therefore on
the principles, that are cognisant of the need of the three
spheres which are yet distinct, interdependent and
interrelated.
To deal with these challenges which seems to be complex in the
spheres itself, we need all us and a societal-based approach
which can be realised through the District Development Model,
which implores all components of government to function
cohesively as a whole, and effectively deliver a capable and a
developmental state.
It is within this context therefore hon members, that section
154 of the Constitution, is important to ensure that we


 
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strengthen our municipalities in pursuit of the objects of
local government contained in section 152.
Our Budget Vote, is strategically enabling conducive
conditions to collectively harness all the public resources by
culminating into One Plans, which are also operational and
modelled to ensure stability in municipalities. So, we are
working with all the stakeholders to assist to put the
municipalities to work better.
For an example in the North West, it was agreed during the
recent Presidential Imbizo, that municipalities such as
Maquassi Hills, Ditsobotla and Mamusa would be assisted by the
department to open criminal charges against all those
implicated in fraudulent activities.
Hon Mkhalipi, following the presentation of the State of Local
Government to Cabinet, for those 64 municipalities a Framework
on Municipal Support and Intervention Plans, MSIPs, was
developed to guide and assist. The 23 of those 64
municipalities, we have already assisted them in ensuring that
they follow these plans to ensure that progress has been


 
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registered and they get out of the dysfunctional state that
they are in.
Further than that the hon Minister made an example of the part
of that 64 - Enoch Mgijima Municipality and Mangaung
Metropolitan Municipality. We did not end there. The
collaboration between the Department of Co-operative
Governance and Traditional Affairs and National Treasury
further looked into further 46 municipalities that are having
difficulties financially, to additionally approve and develop
economic recovery plans for them, to ensure that they also are
integrated into the One Plans and can be able to function
properly and support the services of the people.
So, in both of these sections of the One Plans, sections 154
and 139 are enjoined to build capacity, transfer the skills,
bring personnel, but subsequently, leave the municipality
capable to run on its own.
In the recent Free State Imbizo, for an example, much as yes
the committee visited, there are challenges. However, for an
example in the Ngwathe Bulk Water Supply was identified by the
Presidential Imbizo as a catalytic project.


 
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As we speak, it runs for 46 kilometre of pipeline and a
28 kilometre of that pipeline has been completed. At its
completion 5 776 households will benefit and a total of 21
local subcontractors have been appointed in line with our
Small Medium and Micro Enterprise, SMMEs, development project.
So to boost the 70% of Municipal Infrastructure Grant, MIG,
midmonth spending that the Minister spoke about in
capacitating our municipalities, our Water Services
Infrastructure Grant, has been remodelled with the assistance
of the department trough Municipal Infrastructure Support
Agent, Misa, to ensure that in all the 23 plus and the 46
municipalities we get an end road of that.
Hon Singh, we have put an Intergovernmental Monitoring Support
and Intervention Bill. Currently there is no legislation which
regulates interventions in the provinces that is section 100
and section 139 in municipalities. The MEC might have sounded
the trigger ahead, but it is better to act as early as warning
signs are received or are shown in the quarterly reports
received by MECs subsequently at provincial Treasuries to
assist municipalities.


 
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However, we will be tabulating for all as you know the Act
itself to ensure that we fill the void and regulate
interventions in both sections 100 and 139, but also aligning
them to what the Municipal Finance Management Act says with
regard to discretionary financial interventions.
As indicated by Minister Dlamini-Zuma, key sustainability and
financial viability of municipalities is also realised by the
training of Municipal Public Accounts Committees, MPACs, which
will assist hon members with the capacity, but also
accountability of municipalities. A training for all the teams
of 457 municipalities and their MPACs has already happened at
the beginning of this first term, five-months-old into their
job.
The Municipal Infrastructure Support Agency, continue to
support identified municipalities to ensure that for an
example, 14 of them they are Social and Labour Plans, SLPs,
are integrated into their One Plans, but ultimately their
Integrated Development Plans, IDPs.
These total of these Municipalities are Elias Motsoaledi,
Lephalale, Mogale City, Merafong, Rand West City, Rustenburg,


 
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Moses Kotane, Madibeng, Matlosana, Emalahleni, Steve Tshwete,
Matjhabeng, Ga-Segonyana and Gamagara.
So, we are not only mentioning the One Plans and we are
practicalising it together with Sibanye Mining big planning to
put the training of the mines that is there.
In line with with our Integrated Urban Development Programme
which is the framework, it gives us the development of smart
cities, but also the regeneration of small towns which we have
already picked up out of the 100 small cities for the
generation of smart cities. Three have already being piloted
and approved in a strategy of small town regeneration that has
been adopted by Cabinet.
In the Western Cape, we Piketberg Municipality, in Limpopo
Modimolle and the Setsotso Municipality in the Free State.
There could be challenges in the Free State, but yes, not
everything is doom and gloom.
I would like to commend those communities to make sure that
they participate in the programmes that the municipality is
doing. I would also want to thank the Minister of the


 
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Department of Co-operative Governance and Traditional Affairs,
Dr Nkosazana Dlamini-Zumaare and the Deputy Minister Comrade
Bapela for their leadership as well as officials in the
Department of Co-operative Governance and Traditional Affairs,
for their dedication, support and the work we would want to
achieve.
Lastly hon House Chairperson let me elaborate and clear the
issue that we are refusing the site visits of the committee to
come to KwaZulu-Natal for the disaster. On the 3 May the
department provided the report. We are ready to host the
portfolio committee to look into the challenge that happened
with the disaster in KwaZulu-Natal.
So, it is what Amilcar Cabral says and I quote, “Tell no lies:
claim no easy victories.” We are not running away for an audit
or for a review on what has happened, hon Mkhalipi. We have
provided a report to the committee and we are ready at any
time to host you. Ngiyabonga. [I thank you.]
Ms H O MKHALIPI: We do not want a report; we want to be with
our people!


 
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Mr G G MPUMZA: Hon House Chairperson, Minister and Deputy
Ministers, hon members and leaders of the entities reporting
to the Department of Cooperative Governance and Traditional
Affairs. House Chair, allow me to keep my video off. House
Chairperson, and hon members deepening the implementation
district development model, to eradicate local economic
development is a must.
House Chair, we are rising on behalf of the ANC to support
Budget Vote 3 of Cooperative Governance and Traditional
Affairs. We are of the firm view that this vote supports the
critical aspects of the economic reconstruction and recovery
plan, as outlined by the President, in order to rebuild our
economy following the COVID-19 pandemic.
We must be intentionally about addressing the economic fort
lines of the apartheid spatiality. The post COVID-19 economy
must be decentralised and unleashed to the untapped potential
of our districts and local municipalities, which had been
regarded as a bearer of the mainstream economy.
The role of the state at a local level in driving economic
development and transformation at the macro level is critical


 
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for setting South Africa, on more inclusive growth trajectory.
We have made significant stride in the transformation of our
society and advancing towards a truly non-racial, non-sexist
and truly democratic society.
However, in a local sphere we are yet to achieve what was
intended in the 1998 White Paper, on local government. When it
indicated a task of a developmental local government among
other things. To meet developmental objectives which will keep
and create a better life for all.
As the ANC we are unapologetic in actually supporting this
budget as an instrument to drive thorough economic
transformation, in line with the National Development Plan,
NDP, and its vision, to eliminate poverty reduce inequality.
House Chair, we know that infrastructure is the largest
spending programme in economic development function in the
budget, delivered by the Minister of Finance. Despite the
fiscal pressures, capital expenditure programmes are protected
from budget reduction and this evident of the ANC-led
government’s commitment to invest in infrastructure which is a
catalyst for economic growth.


 
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In order to fund new bulk water project and maintain raw
infrastructure. Spending on national water resource management
is expected to grow from R36,1 billion in 2022-23 financial
year to R36,8 billion in 2024-2025.
Our firm view is that local industries must be the major
suppliers in this projects. As localisation has been at the
central in the economic recovery plan. However, we are
concerned about the declining allocation towards the municipal
infrastructure support agent. More so following an increase in
their target outputs from seven in 2020-21 to 11 in 2022-23
adding new responsibilities
As part of our oversight work, we must ensure that the
infrastructure projects are driven through localisation using
the South African suppliers, materials and construction
companies. An emphasis should be placed on the empowering
young people, women and cooperatives as suppliers for these
materials in order to build the economy.
Hon members, we remain convinced that the challenges of
resource constrain confronting the local government can best
be address through district development model, which is


 
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intended to foster practical intergovernmental relations, to
plan budget and implement jointly to provide coherent
responses and maximise impact.
Hon House Chair, having piloted district development model,
DDM, in three municipalities and drawing lessons from
successful implementation throughout the country.
The one plan for all the 44 districts and seven metropolitan
municipalities have been developed and we are steaming ahead.
Some of their successes seen in the pilot stages include OR
Tambo 50 small micro enterprises and medium enterprises and
cooperatives that have received the support from the district
and partners in the form of financial support and equipment
necessary to unlock their business potential. This include 470
young people who were employed in the solid waste recycling
programme of King Sabata Dalindyebo Municipality and the
support that the Municipal Infrastructure Support Agent, MISA,
is giving on green and cleaning the city itself of Umtata.
We are aware that this particular programme is being
implemented in the district focusing on number of sectors,
including furniture manufacturing with ... [Inaudible.] ...


 
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which supports 30 small, medium, and micro enterprises, SMMEs,
entrepreneurs. Similar achievements in eThekwini Metro and
Waterberg municipality can be cited.
We are therefore welcoming the prioritisation of DDM in the
budget of the department and the South African Local
Government Association, SALGA. And the ANC supports the
budget. I thank you.
Ms E R J SPIES: House Chair, good evening, and 163
municipalities are under financial duress; 108 municipalities
have unfunded budgets, and 29 municipalities have been placed
under administration – this is the real state of local
government in South Africa.
Yet a whopping R4,3 billion of this department’s programme
budget is spent on the community works programme. This
constitutes 85,1% of the funds directly administered by the
department and excludes transfers to municipalities, the South
African Local Government Association, SALGA, the Municipal
Demarcation Board, the Municipal Infrastructure Support Agency
and the South African sister cities network. Government
support and intervention only gets 2,6% of the budget,


 
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institutional development 1,5%, the municipal systems
improvement grant 2,7% and the National Disaster Management
Centre is at 2,1%.
The community works programme is definitely not serving its
intended purpose and there’s definitely no return on
investment whatsoever. There is no justification for spending
R4,3 billion on this programme as this is not the core
function of this department.
What is worse, is that the R4,3 billion does not benefit the
very people that this programme is intended for. Community
works programme participants on the ground earns a meagre R880
per month and every month it is a battle for them to get this
money paid to them on time.
Today, I’m speaking on behalf of the thousands of the
Community Work Programme, CWP workers who must beg for this
stipend for days on end each and every month. Each time and
after numerous questions and enquiries to the Minister, I get
the same answer:


 
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we have implemented a new remodelling policy and we are
having challenges with the implementation of this new
system.
It’s now eight months.
For Mr JP du Toit from Langerberg in the Western Cape, that
means another month of unpaid debit orders – not paying his
funeral policy for him and his family’s on time. He is the one
who is faced his two PWC colleagues sitting outside his house
begging for food for their children. He is the one that must
take his last and share it with his colleagues so that they
don’t go hungry. Twelve years into this programme and we are
still remodelling and reviewing.
The purpose of the community work’s programme in
municipalities is to create access to a minimum level of
regular and predictable income from work opportunities for
those who need them through targeting areas with high levels
of poverty and underemployment.
Female participants in Kannaland, one of the poorest
communities in the country, shared stories of how they have to


 
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use their own tools – carrying spades from their homes with
them daily – because there is no supply of tools and material.
Yet the implementing agents, mostly non-profit organisations
appointed by this department to facilitate this programme,
receive millions. And upon researching these nongovernmental
organisation, NGOs, it makes a very interesting reading. The
people who do the actual work still remain poor and
unemployed.
Minister, you have a choice. You can decide to keep on
throwing money at a programme that is not working for the
people on the ground or you can incorporate the community
works programme into local municipalities.
In principle, the DA supports a review of the CWP programme to
ensure that CWP workers, not third parties or implementing
organisations, are the beneficiaries of the programme. To this
end, the DA proposes that the Department of Cooperative
Governance and Traditional Affairs, CoGTA stops administering
the CWP budget as this does not form part of its core
function. Instead, the CWP budget should be allocated to the
municipality administered public works programmes with the
caveat that they provide quarterly reports on programme


 
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implementation. Using municipalities will cut out the fees
paid to implementing agents and save the taxpayer millions of
rands. This will result in huge cost cutting and a better
chance of participants being taken up in jobs either in
municipalities or in the private sector.
This, Minister, is a real return on investment and if done
properly can improve service delivery in so many of the
dysfunctional municipalities across the country. Minister, I
beg you on behalf of the thousands of underemployed people, to
consider these recommendations for what they are and not who
it is coming from. I thank you.
Mr X N MSIMANGO: Hon House Chair, hon Minister, hon Deputy
Ministers, hon members, the ANC remains committed to the
vision of an ethical, capable and developmental state as
articulated in the National Development Plan, described as a
state with capacity to mobilise both market and nonmarket
stakeholders in order to champion a developmental agenda which
is aimed at resolving the triple challenges of poverty,
unemployment and inequality.


 
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The developmental state has a responsibility to deliver
services to the poor and marginalised communities in order to
act as a catalyst for development. This requires fundamental
transformation and redesign of this sphere of government so
that it is adequately equipped to fulfil this developmental
mandate within the programme democratic inclusive growth and
development.
It is also alluded to the legislative and institutional
framework needed to give effect to this vision. Our task is to
bring new capacities, attitudes and approaches which
strengthens relations between the municipal councils and
administrators between management and the workforce, between
municipalities and service users – and all other relevant
actors at local government.
Last year in the 2021 local elections, Cabinet released a
state of local government report which was very explicit about
the challenges facing local government. Amongst these
challenges that were raised by the report is the political
administrative interference financial management, governance
and service delivery challenges. The report revealed that
166 municipalities were experiencing one or more of these


 
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challenges. Out of those, 64 have reached a state of
dysfunctionality and service delivery has collapsed in those
municipalities, and 30 are currently under section 139
subsection 7 intervention.
The ANC is of the view that the bigger chunk of the budget
that is before us should be directed to respond to these
challenges facing local government and should be allocated to
programmes that are meant to turn around the situation, mainly
in the dysfunctional municipalities. The municipal support and
intervention plans that have been developed together with the
SA Local Government Association, Salga, to assist each of the
54 dysfunctional municipalities be implemented to turn around
and help to restore functionality and deliver municipal
services.
We are still convinced that the promulgation of the
Intergovernmental, Monitoring, Support and Intervention Bill
will go a long way in addressing some of the challenges,
especially putting in place early warning systems to prevent
collapse in municipalities. Various reports of the Auditor-
General have highlighted challenges with regards to the
finance performance management, lack of human resource


 
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capacity and deepening culture of impunity at local government
which breeds lack of accountability and consequence
management.
The 2018-19 report which was titled: “Not much to go around,
yet not the right hands at the till” sharply raised the
challenges around human resources to manage municipalities and
highlighted challenges emanating from the political and
administrative interference. Also in the 2019-20 report
titled: “Ethical and accountable leadership should drive the
required change” carried a special report on the financial
management of local governments’ COVID-19 initiatives.
This report reflected the same terms that were observed in the
main report and it also revealed that compromised control
environment and poor financial performance management work
exposed during the COVID-19 pandemic. We also welcome the fact
that in the medium-term budget, the allocation towards Salga
will increase from R808 million in the financial year 2022-23
to R882 million in the financial year 2024-25. This is
significant to us because the association plays a pivotal role
in co-ordination of local government and it is a key
stakeholder of developments in or municipalities.


 
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It is important that we make people of South Africa aware that
the DA government in the Western Cape is fundamentally opposed
to the District Development Model which is meant to co-
ordinate and streamline development in municipalities. We are
not surprised by the actions of the DA in the Western Cape.
The DA opposes anything that has a chance of reversing the
apartheid legacy such as the racially skewed spatial
development. They have no interest in streamlining and co-
ordinating development in the white suburbs of Cape Town and
township’s such as Khayelitsha, Langa and Mitchells Plain and
other townships in the province.
This budget is true to the character of the ANC of [NOT] being
biased to the poor and the working class communities. The ANC
Budget Vote No 3. The ANC lives; the ANC leads! I thank you,
House Chairperson.
The ACTING HOUSE CHAIRPERSON (Mr M G Mahlaule): Thank you very
much, hon Msimango. I am informed that this was your maiden
speech. Thank you very much. I will now call the Minister of
Co-operative Governance and Traditional Affairs to close the
debate. The hon the Minister?


 
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The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS: Thank you very much, House Chairperson. Thank you
very much to all the members of the portfolio committee who
have participated in this debate. Let me first say that it is
disingenuous of some of the members to talk as though we
should run the municipalities, because they know that first of
all we have no constitutional mandate to run the
municipalities. And secondly, we don’t have the capacity to
run the municipalities. So, to come and speak here as though
we should actually run the municipalities is disingenuous.
Let me also say that this department, even though it gets R111
billion plus, after we have transferred all the grants and
taken out the Community Work Programme, CWP, money, all we are
left with is less than a billion, which covers Municipal
Infrastructure Support Agent, Misa, as well. We are a very
small department, one of the smallest in government. So, I
just thought I should make that point.
Let me also say that the division of revenue is in my view not
correct, because local government gets the least out of the
division of revenue. This is because a wrong assumption was
made that municipalities will be able to raise their own


 
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resources, which is incorrect. The majority of municipalities
are not able to raise their own revenue. They don’t have a
revenue base; they serve indigent citizens. So, that
assumption was incorrect in the first place. Of course, we
have been pleading that that should change, but it hasn’t
changed yet – so, that’s where we are.
Lots of small municipalities cannot even afford to hire
engineers, and that is why Misa has to assist them with the
few engineers that they have, because they cannot afford to
hire engineers. One of the speakers asked why are the
municipalities not hiring their own engineers, so the reason
is that they can’t afford that. Sometimes they hire
unregistered engineers which is not satisfactory. One need
registered engineer to sign off the plans and so on.
Let me say to the NFP that I will discuss with Treasury but
that responsibility of contracts and transactions in local
government is really under the Municipal Financial Management
Act and it’s not directly under us. It is Treasury that sees
the transactions, but we will discuss with the Minister and
take your suggestions. I think it will be a good idea actually
to have all contracts published and not only publishing those


 
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who got the contract depending on how much it cost and how
long it is going to take, so that people can monitor whether
the funds are being used correctly and also whether the
original contract and the amount in the original contract is
what ends up being paid and there is no escalation. I will
discuss with the Minister but it is not something that resides
directly under us.
I agree with the hon Shaik Emam that it would be desirable not
to have part of the ... [Inaudible.] ... members being
involved in appointing managers in the municipalities. But at
the moment, that is where we are and we are just trying to
make sure that the criteria is correct and that people are
appointed according to the prescripts and the qualifications.
I also completely agree with the other members and I thank the
members of the ANC, IFP and the NFP for supporting this
budget. It is always ... [Time expired.]
The ACTING HOUSE CHAIRPERSON (Mr M G Mahlaule): Thank you so
much, Minister. I even gave you 30 seconds. Thank you very
much.


 
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The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL
AFFAIRS: Thirty seconds? Thank you very much for your
generosity.
The Mini-Plenary rose at 18:32.

 


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