Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 06 Dec 2021

Summary

No summary available.


Minutes

UNREVISED HANSARD 

NATIONAL COUNCIL OF PROVINCES

TUESDAY, 7 DECEMBER 2021

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

Watch video here: PLENARY (HYBRID)

 

 

The Council met at 10:02.

 

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

 

ANNOUNCEMENTS

 

 

The CHAIRPERSON OF THE NCOP: Thank you very much, hon members. Please, allow me to remind delegates that the Rules apply and so do the process for the hybrid sitting. Before we proceed, I would like to make the following announcements:

 

 

That delegates who are physical in the Chamber must connect to the virtual platform as well as insert their cards to register on the Chamber system. That they must switch off the sound of their gadgets. That delegates must ensure the microphones and their gadgets are muted and remain muted at all times. That they should, please, use the floor microphones. That they

 

should, please, wear face masks at all times. That they should occupy seats marked for that purpose. That they should do at all times maintain social distance, a distance of at least one and a half meters from each other. Delegates must switch on videos if they want to speak and to address the Chair. Any delegates who wishes to speak must use the hand function or icon. All participating in the discussion through the chat room. Having gone through these announcements, please, allow me to move on to notices of motions.

 

 

NOTICES OF MOTION

 

 

Mr M I RAYI: Thank you very much, hon Chairperson. I hereby give notice on behalf of the African National Congress that in the next sitting of the Council I shall move:

 

 

That the House debate the good work done by the ANC-led government of the Eastern Cape, in ensuring that investment to East London Industrial Development Zone, ELIDZ, continues and the motor industry in the Eastern Cape is growing. The East London Industrial Development Zone announced the launch of two investors, IBO automotive system worth R150 million, Auria Automotive

 

system worth R172 million and the one Ti Automotive Oil system expansion worth R118 million.

 

 

The three investments are all within the automotive sector and are part of the 16 investments that translates to R3,327 billion worth of private sector investment with a job creation potential of 2 078 new direct jobs in the zone since 2018. Thank you.

 

 

Ms M O MOKAUSE: Chairperson, we are dealing with notices of motion not motions without notice. The member is raising a motion without notice. That has to be corrected.

 

 

The CHAIRPERSON OF THE NCOP: Yes.

 

 

Mr M I RAYI: No, Chair, the member didn’t listen. This is notice of a motion. I started by saying, I hereby give notice. So, that is a notice of motion.

 

 

Mr A ARNOLDS: No, it’s not ...

 

 

Ms M O MOKAUSE: ... there are many things there.

 

The CHAIRPERSON OF THE NCOP: Thank you very much, members. Of course, I mean it’s not. Ordinarily, the notices of motion themselves should not be too long, ordinarily. Maybe that is what can be said, otherwise we should proceed.

 

 

Mr C F B SMIT: Chairperson, I just want hear because the notice of a motion is asking for a debate. So, did he ask for a debate?

 

 

The CHAIRPERSON OF THE NCOP: Yes.

 

 

Mr C F B SMIT: Okay.

 

 

Mr T APLENI: Chairperson, I rise on behalf of the Economic Freedom Fighters to give notice that the Council on its next sitting day, I shall move:

 

 

That the House debate the complete eradication of mud schools in the Eastern Cape before the end of the first term in 2022 which should have been eradicated nationally by November 2016 yet today they still exist. Thank you, Chair.

 

Mr S ZANDAMELA: Chairperson, I rise on behalf of Economic Freedom Fighters that the Council in the next sitting I shall move:

 

 

That the House debate the state of embattled local municipalities which were placed under administration in the previous term. Thank you, Chair.

 

 

Ms M O MOKAUSE: Thank you, Chairperson. I move on behalf of the Economic Freedom fighters:

 

 

That the Council in its next sitting debates the eradication of asbestosis roofing in the Northern Cape province which are posing a health risk to our people. Thank you.

 

 

The CHAIRPERSON OF THE NCOP: Hon Mokause, may you repeat the motion. Try to be a bit slower and speak to the microphone.

 

 

Ms M O MOKAUSE: Thank you, Chairperson. I hereby move on behalf of the Economic Freedom Fighters:

 

That in its next sitting the Council debates the eradication of asbestosis roofing in the Northern Cape province which are posing a health risk to our people.

 

 

The CHAIRPERSON OF THE NCOP: The next speaker will be hon Mathevula. Hon Mathevula! We will pass, hon Mathevula. We move on to hon Du Toit.

 

 

Mr S F DU TOIT: Thank you, hon Chair. On behalf of the Freedom Front Plus I hereby give notice that during the next ordering Sitting of the House I will move:

 

 

That the House debates the shortage of equipments like

 

... [Inaudible.] ... vests, similar equipments and fire protection equipments in public order police deployments is in an unfortunate reality in the shortage of these equipments endangers the lives of the brave men and women that are in the fore front of crime fighting and crime prevention and that the shortage of sufficient service vehicles and specialised vehicles hampers the operational effectiveness and safety of these units. Thank you.

 

 

CONTINOUS RELIANCE OF HISTORICALLY DISADVANTAGED ON THE INFORMAL ECONOMY

 

(Draft Resolution)

 

 

Ms L C BEBEE: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes with concern the reliance of a majority of historically disadvantaged sections of our people on the informal economic for livelihood;

 

 

(2) that, this economy continues to be relegated to the periphery of integrated policy interventions by government as evidenced by the devastations of the Covid19 pandemic and the recent July 2021 unrests;

 

 

 

(3) believing that, uneven regulation and integrated support of this sector by the Local government undermines government wide integrated policy interventions in this critical sector of our economy; and

 

 

(4) therefore, calls on the Minister of Small Business Development, in collaboration with the Department of

 

Co-operative Governance and Traditional Affairs, Cogta, the sector departments in the Economic Cluster and other critical stakeholders, to speedily put in place a process of developing an integrated national master plan on the informal economy as a matter of urgency.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

EVERYONE HAS THE RIGHT TO A BASIC EDUCATION

 

 

(Draft Resolution)

 

 

Mr A ARNOLDS: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes that the Bill of Rights, as entrenched in the Constitution sets out that everyone has the right to a basic education, which the state, through reasonable measures, must make available and accessible;

 

 

(2) further notes that section 29(1) of the Schools Act stipulates that everyone has the right to a basic

 

education and makes it compulsory for all children to attend school from the age of seven until they reach the age of 15 or the end of Grade 9, whichever comes first;

 

 

(3) acknowledge that there exists a challenge for space in schools, especially in grades 1 and 8, and that at the beginning of each school year, all provinces experience a high demand, with parents fighting to have their children placed in schools.;

 

 

(4) further acknowledge that at the beginning of each school year many children are stuck at home for weeks without access to basic education.

 

 

(5) recognize that the department needs to work with speed and efficiency in order to place all learners before the start of the new school year and ensure that there are enough places for all the learners in their provinces to attend school;

 

 

(6) further recognize that admission policies and processes remain influenced by inequalities and spatial injustice with schools in previously disadvantaged areas,

 

remaining overcrowded, under resourced, which affects the admissions crises. That some of the admission policies of individual schools are exclusionary;

 

 

(7) call on the Minister of Basic Education to ensure that all learners are placed in schools without delay and to protect the interest of learners in line with the Constitution.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

COP SHOOTS WIFE DEAD, COMMITS SUICIDE

 

 

(Draft Resolution)

 

 

Ms M BARTLETT: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes, that Sergeant Billy Hoffman of the Public Order Police in Springbok, shot and killed his wife Carmen Rossouw and shot and injured another man before

 

committing suicide with his service pistol on Saturday 4 December;

 

 

(2) further note that Carmen Rossouw was shot three times in front of her sister and other friends, and an unknown man was shot and wounded in his head;

 

 

(3) also note that Sergeant Hoffman fled the scene after shooting the victims and decided to take his life when the police caught up with him; and

 

 

(4) therefore, send our condolences to the family of the deceased and hope for a full recovery to the injured person.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

FARMERS APPEARED IN THE PAARL MAGISTRATE COURT FOR A MURDER

 

 

(Draft Resolution)

 

 

Ms M N GILLION: Chairperson, I move without notice:

 

That the Council—

 

 

(1) notes that two farmers appeared in the Paarl magistrate court for the murder of a man they suspected of theft on Thursday 2 December;

 

 

(2) further note that JT Basson a former DA councillor and John Woets are charged with the murder of Chatwell Rodgers who is selling fruit and vegetables for a living;

 

 

(3) also note that according to the NPA Rodgers was shot at the back and he and another man were outside the farm when the shooting took place; and

(4) therefore, send our deepest sympathy to the family of the deceased and call on the police and the NPA to leave no stone unturned in getting justice for Rodgers.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

ESKOM AND TRANSNET CABLE THEFT A MAJOR CONCERN

 

 

(Draft Resolution)

 

 

 

Mr S F DU TOIT: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes, Eskom and Transnet cable theft is escalating;

 

 

(2) notes that towns like Koster, Rustenburg, Ventersdorp, Ditsobotla, where cable theft take place on a weekly basis, can’t afford not having electricity, since load- shedding is already taking its toll on the people;

 

 

(3) notes that these thieves are not only stealing lives and livelihoods of communities but is taking part in the destruction and theft of critical infrastructure;

 

 

(4) notes, that law enforcement agencies must be enabled through joint operations by SAPS and SANDF, that can act as force multipliers to clamp down on these acts infrastructure destruction; and

 

 

(5) resolves to urgently debate the matter.

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

 

THE SOUTH AFRICAN SEVENS RUGBY TEAM’S IMPRESSIVE WINNING RUN

 

IN DUBAI

 

 

 

(Draft Resolution)

 

 

Ms N NDONGENI: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes that the South African 7’s Rugby team stretched their impressive winning run to 24 matches on their way to a ninth overall title success in Dubai;

 

 

(2) further note that they achieved a rare feat of three Dubai tournament wins in a row;

 

 

(3) also note that this is the fourth successive HSBC World Rugby Sevens Series tournament crown, after bringing home two gold medals from their Canadian trip in September; and

 

(4) therefore, send our congratulations to Captain Siviwe Soyizwapi, Coach Neil Powell and their team for making South Africa proud with their achievements.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

ESCALATION OF VIOLENT CRIMES IN THE WESTERN CAPE

 

 

(Draft Resolution)

 

 

Ms S SHAIKH: Hon Chairperson, I move without notice:

 

 

That the Council —

 

 

(1) notes with concern the escalating violent crimes against women and children in the Western Cape;

 

 

(2) also notes that there is no day that passes by in this province without media reports about gruesome murders of innocent and vulnerable people, especially women and children;

 

 

(3) further notes that it is the belief of the ANC that

 

glaring poor relationships between the Western Cape law enforcement agencies and the South African Police Services, SAPS, undermines the state capacity in combating these violent crimes; and

 

 

(4) call for high level intervention by the Minister of Police, hon Bheki Cele, to get back to the drawing board in order to ensure a co-ordinated and seamless approach in policing in the Western Cape province. Thank you, hon Chair.

 

 

Ms C LABUSCHAGNE: Chairperson, I rise on a point of order. I just want to know whether I have the wrong Order Paper. I would like to confirm whether I have the correct Order Paper, because the one that was given out indicated on the order of today a motion on the three days for the Division of Revenue Bill and then orders of the day first is the Division of Revenue Amendment Bill. Second, Local Government Municipal Systems Act. Nothing about motions. I just want to know how are all the other parties prepared for motions and not us?

This is the order group for today. Thank you.

 

The CHAIRPERSON OF THE NCOP: Chief Whip, do you want to respond to that? Was provision made for motions, besides motions mentioned by the hon member?

 

 

The CHIEF WHIP OF THE NCOP (Mr S J Mohai): This is in the middle of the motions, Chair. The Whippery will deal with their matters at the relevant platform. I think we should conclude the motions that are underway now.

 

 

The CHAIRPERSON OF THE NCOP: Thank you very much. We will therefore proceed. Let us look at the motion by hon Shaik. Is there any objection?

 

 

HON MEMBERS: Yes!

 

 

The CHAIRPERSON OF THE NCOP: There is an objection. The motion may therefore not be proceeded with, and it will become a notice of a motion.

 

 

PASSING AWAY OF LINDIWE MABUZA

 

 

(Draft Resolution)

 

 

Ms S E LUCAS: Hon Chairperson, I move without notice ...

 

The CHAIRPERSON OF THE NCOP: We have a problem with the system, hon members. So, if you speak with your mask on you really can’t be heard properly.

 

 

Ms S E LUCAS: Chairperson, I move without notice:

 

 

That the House—

 

 

(1) notes the passing of our icon, freedom fighter and poet, Lindiwe Mabuza, the former High Commissioner to the United Kingdom.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

LEVELS OF FRUITLESS AND WASTEFUL EXPENDITURE DRASTICALLY INCREASING

 

 

(Draft Resolution)

 

 

Mr M S MOLETSANE: Chairperson, I move without notice:

 

 

That the Council—

 

(1) notes the Municipal Finance Management Act of 2003, MFMA, defines fruitless and wasteful expenditure as expenditure that was made in vain and would have been avoided had reasonable care been exercised;

 

 

(2) further notes that most of South Africa’s municipalities are in financial ruin. The levels of fruitless and wasteful expenditure have increased as year after year and the Auditor-General exposes how too many municipalities incur significant amounts of fruitless and wasteful expenditure;

 

 

(3) acknowledges that in Bloemfontein a taxi rank was built which costs the Mangaung Metro about

R400 million and that to date, ten years later, the rank is not operational;

 

 

(4) further acknowledges that the taxi rank stands as a white elephant, as it was declared non-operative after taxi owners claimed that the taxi rank’s structure was defective and needed reworking before they could use it;

 

(5) recognises that millions of rands of taxpayers’ money was wasted on a structure which is currently standing unused and to date, no one has been held accountable on issues surrounding the structure of the taxi rank, from the construction company to government officials; and

 

 

(6) calls on the Minister of Cooperative Governance and Traditional Affairs, to put measures in place to avoid fruitless and wasteful expenditure as we cannot afford to lose money because of neglect, inefficiencies and poor decision making.

 

 

The CHAIRPERSON OF THE NCOP: Are there any objections?

 

 

HON MEMBERS: Yes!

 

 

The CHAIRPERSON OF THE NCOP: There is an objection. The motion may therefore not be proceeded with, and it will become a notice of a motion.

 

 

PASSING AWAY OF FORMER DEPUTY MINISTER AND PRESIDENTIAL COUNSELLOR, EBRAHIM EBRAHIM

 

(Draft Resolution)

 

 

Mr S J MOHAI: Chairperson, I move without notice:

 

 

That the Council—

 

 

(1) notes with profound sadness and a great sense of loss, the death of former Deputy Minister and Presidential Counsellor, Ebrahim Ebrahim who would be laid to rest today;

 

 

(2) also notes that Mr Ebrahim Ebrahim, who was affectionately known as Comrade Ebi, played a formidable role in our fight for liberation and in the service of our nation in various capacities where he made indelible contribution not only to reaffirm the democratic ideals espoused by long-time allies such as Nelson Rholihlahla Mandela, Walter Sisulu and many more who spent years in Robben Island for the stance that they took to champion our fight for freedom, justice, equality and democracy in South Africa; and

 

 

(3) sends its profound sadness to the Ebrahim family,

 

especially his wife, Shannon Ebrahim, and their children, comrades and friends.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

MOTION OF CONDOLENCE

 

 

(The late Ebrahim Ismail Ebrahim)

 

 

The CHIEF WHIP OF THE NCOP (Mr S J Mohai): Hon Chairperson, I move without notice:

 

 

That the Council-

 

 

(1) notes with profound sadness and a great sense of loss, the death of former Deputy Minister and Presidential Counsellor, Ebrahim Ebrahim, who will be laid to rest today;

 

 

(2) further notes that Mr Ebrahim Ebrahim, who was affectionately known as Comrade Ebi, played a formidable role in our fight for liberation and in the serve of our nation in various capacities where

 

he made indelible contribution not only to reaffirm the democratic ideals espoused by long-time allies such as Nelson Rholihlahla Mandela, Walter Sisulu and many more who spent years in Robben Island for the stance that they took to champion our fight for freedom, justice, equality and democracy in South Africa; and

 

 

(3) finally, takes this opportunity to send its profound sadness to the Ebrahim family, especially his wife Shannon Ebrahim and their children, comrades and friends.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

The Chief Whip of the Council moved: That the Council resolves that Rule 239(1), which provides inter alia that the consideration of a Bill may not commence before at least three working days have lapsed since the committee’s report was tabled, be suspended for the purposes of consideration of Division of Revenue Amendment Bill.

 

 

Question put.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Motion accordingly agreed to in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF DIVISION OF REVENUE AMENDMENT BILL AND REPORT OF SELECT COMMITTEE ON APPROPRIATIONS THEREON

 

 

Ms D G MAHLANGU: Hon Chairperson and Deputy Chairperson of the NCOP, hon Chief Whip, hon Minister and hon Deputy Ministers that are on the platform and I know for a fact that the Minister of Finance is on the platform, hon members, permanent and special delegates, MECs present on the platform and fellow South Africans, lotjhani. [I greet you.]

 

 

Hon Chairperson, in the first two lines of the play, Richard III, William Shakespeare writes, and I quote:

 

 

Now is the winter of our discontent made glorious summer by this sun of York; And all the clouds that lour’d upon our house. In the deep bosom of the ocean buried.

 

Hon Chairperson, with these lines, Shakespeare expressed the idea that we have reached the depth of our unhappiness and that better times are ahead.

 

 

These words resonate with me as I introduce this Division of Revenue Amendment Bill [B 19-2021]. Our country and the world are gripped by the fear and anxiety caused by the corona virus pandemic and recently, the Omicron variant. In times like these, it is easy to talk ourselves into a state of depression.

 

 

While talking negatively about our country’s prospects of economic reconstruction and recovery, it is the favorite hobby of the hon members from some of the political parties in this House, it is not an opinion for those of us who are patriotic South Africans. Ours is to roll up our sleeves and work hard, to rebuild from the depth of our despair.

 

 

Hon Chairperson and hon members, I am honored to table before this august House, the report on behalf of the select committee on appropriations. The committee anonymously adopted the report, whilst the DA, FFPlus and the EFF rejected this report.

 

The Minister of Finance tabled the Division of Revenue Amendment Bill in Parliament on 11 November 2021. It was the occasion of the 2021 Medium-Term Budget Policy Statement. The Bill was tabled in terms of section 12(4) of the Money Bills and Related Matters Act 9 of 2009. The Act requires the Minister of Finance to table a Division of Revenue Amendment Bill with a revised fiscal framework if the budget adjustment effect changes to the Division of Revenue Act to the relevant year.

 

 

Hon Chairperson, subsequently, this Bill was referred to the NCOP, and to the committee on 30 November 2021. The committee received a briefing from the National Treasury of this Bill on

25 November 2021.

 

 

Provinces were invited to that meeting and were briefed individually by permanent delegates on 1 December 2021 from this House. Negotiating mandates were submitted and considered on 2 December 2021 and final mandates on 3 December 2021. In order to facilitate effective public participation in line with section 72 of the Constitution of the Republic of South Africa, the committee published an advert in 11 official languages and written submissions were only received from Cosatu.

 

In accordance with section 214(2) of the Constitution of the Republic and section 10(4) of the Intergovernmental Fiscal Relations Act 97 of 1997, the committee consulted with the Financial and Fiscal Commission, FFC, SA Local Government Association, Salga and the Parliamentary Budget Office, PBO.

 

 

Hon Chairperson, the committee welcomes an additional amount of R65,12 billion earmarked for the upward adjustment to both the national and provincial equitable share for the current financial year. However, the committee remains concerned whether adequate mechanisms are put in place for funds to be spent for the intended purpose.

 

 

Hon Chairperson and hon members, government departments and its entities must take into consideration the existing capabilities of the officials to spend additional funds when allocations are made. The situation where there is poor planning and lack of capacity to implement projects result in poor spending, unnecessary roll-over and deviations. These can no longer be tolerated.

 

 

I wish to call on all our Ministers to ensure that the implementation of consequence management is fast-tracked.

 

Where necessary, law-enforcement agencies are brought on board to recover any financial loses to the state.

 

 

The committee welcomes the increased allocations for local government over the medium-term period. The National Treasury and the Department of Co-operative Governance and Traditional Affairs, together with provincial departments and Salga, need to work together to ensure that suitably qualified and experienced individuals are appointed to improve financial management and service delivery capacity in all municipalities.

 

 

The National Treasury and the Department of Co-operative Governance and Traditional Affairs, together with their provincial counterparts, should ensure that concerns raised by Salga around the correctness of assumptions about collection of own revenue contained in the 1998 Local Government White Paper are addressed urgently.

 

 

The Department of Co-operative Governance and Traditional Affairs need to work with Salga to fast-track the implementation of the resolution around unfunded mandates which was taken during the Local Government Budget Lekgotla in December 2020. Further, ensure that funds follow functions.

 

Hon Chairperson, the provincial departments of the Department of Co-operative Governance and Traditional Affairs and provincial Treasuries should work with Salga to ensure that proper interventions and systems to monitor service delivery in local government are implemented to address the issues around water loses and electricity challenges.

 

 

The committee is of the view that the MECs of both finance and co-operative governance have to work with Salga to enforce consequence management in relation to negative performance reports, failure to submit financial statements and fruitless and wasteful expenditure, amongst other challenges.

 

 

The National Treasury should be proactive in ascertaining which provinces will not spend their housing budgets to ensure that appropriate remedial actions are taken and avoid last minute gazzets, fruitless and wasteful expenditures and fiscal dumping towards the end of the financial year.

 

 

The National Treasury and the Department of Co-operative Governance and Traditional Affairs should ensure that challenges around delays and poor contracting which led for instance to the roll-over amount of R582 million for the Vaal River Pollution Remediation Project in Emfuleni Local

 

Municipality, are addressed and work verification process is completed.

 

 

The Department of Co-operative Governance and Traditional Affairs together with its provincial counterparts should fast- track the implementation of the District Development Model to ensure that systems are in place for more integrated delivery of service and ensure sufficient capacity by driving co- ordination and alignment of processes.

 

 

The national and provincial Departments of Basic Education must ensure that the lack of parity between provinces regarding the stipend paid to the Early Childhood Development, ECD, workers or professionals, is urgently addressed.

 

 

The National Treasury and the Department of Transport, together with their provincial counterparts, should make sure that allocations earmarked for the Provincial Road Maintenance Grant are utilised effectively to address the poor state of the provincial roads. The quality of material used, the workmanship and the procurement processes for such projects need to improve to realise value for money.

 

With regard to Hospital Infrastructure Maintenance, hon Chairperson, the National Treasury and the Department of Health, together with their provincial counterparts, should ensure that more resources are earmarked to deal with the current poor state of some hospital infrastructure which requires proper maintenance in various provinces especially given the advent of COVID-19 pandemic.

 

 

The National Treasury and the Department of Basic Education should ensure that the roll-over amount of R210 million for the School Infrastructure Backlog Grant to complete projects that are part of the sanitation appropriate education initiative is properly spent to expedite the replacement and removal of inappropriate and unsuitable sanitation in certain provinces.

 

 

The committee believes that the pace at which this initiative is implemented is unacceptably slow given that this programme started in 2010. The department should expand the programme to include the eradication of asbestos schools in certain provinces. If these are not already included, they must be included.

 

Hon Chairperson, we call on the Minister of Finance and the public service administration, together with their provincial counterparts to ensure the effective implementation of the Wage Agreement of the Public Service Co-ordinating Bargaining Council, PSCBC, 2021-22 financial year. This should bring the much needed certainty and stability in the public service to ensure uninterrupted service delivery to the poor and vulnerable.

 

 

Hon Chairperson, furthermore government needs to ensure that funded vacant posts are filled urgently.

 

 

The head count cards for the SA Police Service and teachers need to be reversed in order to protect frontline service delivery. The committee recommends that the head count cards should happen at management level of each department, as opposed to the levels at which service is being delivered.

 

 

Government needs to ensure that concrete steps are taken to monitor the impact of the well-funded employment creation programmes such as the Presidential Youth Employment Initiative to achieve value for money and avoid mistakes that might have occurred in similar programmes in the past.

 

Hon Chairperson and hon members, as I conclude, I wish to thank all committee members, also provincial committee members, the MECs who availed themselves, committee stakeholders, the media, the general public which made written and aural submissions to the committee as well as the committee support staff. Without these role-players, all of them combined, this process would not have been a success. The committee recommends to this august House that this Bill be adopted without amendments.

 

 

Indeed, hon Chairperson, as I conclude, through unity and focus on the implementation of our recommendations we shall rise from the winter of our discontent, to the glorious summer of hope and programmes. Angithokoze. [Let me give thanks.] [Applause.]

 

 

Mr D R RYDER: Mr Chair, let’s face it, there isn’t a lot to debate today. The fact is that the Finance Minister has no wiggle room, squeezed between failing economic policy, years of corruption and mismanagement, and an out of control debt spiral. His predecessor had the pandemic thrown on top of him to really test his mettle, and then the July insurrection came along to really twist the proverbial knife.

 

In an act of self-preservation Mr Mboweni bowed out and handed an empty vault to Mr Godongwana. At least I think he did.

 

 

This new Minister is yet to present himself to our committee four months later; so, I am not sure if he is really at the helm or not. Imagine a whole minister not appearing before a committee to present the adjustment budget or discuss the fiscal policy framework. Unprecedented.

 

 

But, here we are today to discuss the Division of Revenue Amendment Bill, which is the tweaking of the allocations to provinces and to local government.

 

 

Frankly, there is not much to discuss other than missing opportunities. So, the missing Minister, once accused of missing millions is now missing opportunities.

 

 

The biggest and most obvious point is to remark that government has backed down on a firm stance on the public wage bill that they once had, and funds now need to be given to provinces to cover the increased expenditure. It would be churlish to say ‘I told you so’, so, I’ll say ‘Mr Maynier told you so’. Yes, go back to the speeches here, nine months ago and you will hear the warnings.

 

What we are seeing in this Bill is some acknowledgement of the pressure that local government is under, with a gradual move being signalled to increase the local government share of the national fiscus from the hopelessly inadequate 9% up to 9,6% in the medium-term.

 

 

It’s a welcome sign but it remains inadequate, noting the increasing unfunded mandates and mandate creep in an environment where the ability of most municipalities to collect revenue is under severe pressure from the economic fallout caused by the pandemic and our government’s reaction to it.

 

 

Yes, the almost 50% unemployment rate that was announced last week, 46,6% on the expanded definition, has a massive impact on the ability of our residents to pay their rates and taxes, to pay for electricity, water and refuse collection.

 

 

If you think local government has struggled to date, just wait, Omicron just said ‘Here! Hold my beer.’

 

 

The biggest alarm in local government though is the fact that while there is seemingly no problem in spending the money on salaries, the lack of capacity of municipalities to implement

 

financial controls and reporting is a consistent comment from the Auditor-General, from National Treasury and from SA Local Government Association, SALGA itself.

 

 

The fact that years after the deadline for the implementation of municipal Standard Chart of Accounts there are municipalities that just don’t have the ability to implement its principles is an abhorrent abuse of ratepayers’ money, when there is, without fail, someone drawing the salary of the chief financial officer and the accounting officer or municipal manager.

 

 

The fact that annual financial reporting is so dismal, even with the exorbitant amounts that are spent on consultants, is a clear sign that local government is failing.

 

 

But that’s not entirely true, is it? No! Everywhere that the DA is in local government, municipal Standard Chart of Accounts is implemented. Financial reporting is done on time and accurately, and it is usually rewarded with an unqualified or a clean audit. So, local government is not the problem, the ANC is the problem.

 

Casting the eye to provincial funding, some of the signals are truly interesting. Funding moved from the failing National Health Insurance, NHI, project to mental health and oncology front lines is most welcome.

 

 

The movement of funds in the provincial education budget away from the sanitation line item is of huge concern. This seems to be an area that this government cannot get right.

 

 

How much longer will our children be forced to use unsanitary and unsafe pit latrines, long-drops and bucket toilets? Come on! Is this how we expect our people to live?

 

 

A further concerning signal affecting both provincial and local government spheres is a trend affecting grant funding. It seems that national departments are seeking to entrench their hold on the purse strings by shifting direct grants to indirect grants, ensuring that they retain control of the funds and thereby reducing the effective local government share of the fiscus below the 9% that is published.

 

 

The trend has begun to be more prevalent in the Water and Sanitation and Health Departments, and has now reared its ugly

 

head in the Neighbourhood Development Grant under the control of Treasury and the Presidency.

 

 

Asked for comment, Treasury reluctantly admitted that the trend is not encouraged by them as it undermines the spirit of the spheres of government and it centralises control. Perhaps it’s time for Treasury to raise their own voices.

 

 

But, Mr Chair, my biggest gripe with the Division of Revenue Amendment, DORA Bill is the process that is been followed this year to bring us to this point. Many provinces voiced their disappointment at the rush job done to push the legislation through, giving scarcely any time for public participation.

 

 

Once again, in spite of the legislation, one province, Limpopo, didn’t bother to submit a final mandate to the committee for consideration. They sent a letter saying that they were too busy with other things.

 

 

The North West province ran a highly flawed process with a reluctance to hold a briefing followed by a legislature sitting that broke more rules than it actually adhered to.

 

 

So, where are the missed opportunities that I spoke about?

 

Well, the half-hearted increased allocation to local government is the first.

 

 

The absolute absence of any funding for the much vaunted infrastructure-led economic recovery is the next.

 

 

The failed reduction of the public wage bill is probably a third.

 

 

The absence of a sound plan for economic development or recovery at provincial and local level can be number four.

 

 

Perhaps number five should be a solution on e-tolls. Instead of the loose cannon, Mr Fikile Mbalula, who has chosen to make an early pronouncement of what will be in the February budget speech. Dumping the financial solution on the Finance Minister by admitting that Treasury is yet to find an alternative funding model. Again, unprecedented.

 

 

And yes Minister, the missed chance to show that we finally have a Minister with a plan that carries the support of the President and the Cabinet.

 

For we have had promises in the state of the nation address that do not find their way into the budget or into the division of revenue.

 

 

We have had budget speeches that are stillborn as Cabinet [Time expired.] enforces the will of the ANC.

 

 

We have yet to see one cohesive, universally accepted, implementable plan that will give us any hope that our country is on track to recover from the wounds inflicted by your divided party.

 

 

In response to the Hon Mahlangu’s quote from Shakespeare, I will quote my father’s favourite line from the Merchant of Venice: “All that glisters is not gold.” Thank you, Chair. [Applause.]

 

 

Mr P V MKHANTSHWA (Mpumalanga: MEC – Finance, Economic Development and Tourism): Hon Chairperson, let me start by greeting your good selves and the Deputy Chairperson of the NCOP, the Chief Whip of the NCOP, hon members and delegates from the provinces. We enter this debate mindfully of the fact that on 01 November 2021, the South African electorate

 

profusely announced itself on the leadership of their choice as far as Constitution of local government is concerned.

 

 

Through the electoral engagement under the stewardship of the Independent Electoral Commission, IEC, the voice echoed by the voters gives sufficient expression to the central thesis of the Freedom Charter that, “the people shall govern.” In this context, the people reaffirmed what I always referred to as the revolutionary idea that ours is a robust and gradually maturing democracy with a government which is an instrument for popular will, a government of and by the people.

 

 

However, we must not be oblivious of the objective reality that these elections were firmly characterised by the majority of eligible voters who stayed away from the polls which served as the existential threat to our democracy. However, through our educational programmes and direct physical engagements with the society we serve we will double our efforts to guarantee a sufficient and fundamental understanding of the historical significance of voting, the right through which most of the people sacrificed their lives.

 

 

We will do so to pay homage to the heroes and heroines of our struggle for liberation who relentlessly fought for universal

 

suffrage. Chairperson, the latest data suggest that the latest economy is expanding on a backdrop of a disastrous situation imposed by Covid-19. The second quarter 2021 GDP data released by Statistics SA illustrates that the province registered four consecutive quarters of growth since the sudden drop in economic activities in the same quarter last year.

 

 

Although it is too early to make conclusions on the economic growth prospects, our efforts are geared towards recovery and refocusing our interventions to reignite the desired growth in the key industries such as tourism with a leap of domestic travel as well as agriculture. One of the encouraging stories of this period is that the informal sector which employs a quarter of Mpumalanga’s employed people is showing recovery from the current challenges.

 

 

However, we are not oblivious to the remnants of Covid-19 pandemic. The misplaced travel bans and the July unrest in parts of Gauteng and KwaZulu-Natal which could change our economic prospects in the next voting period. We are closely monitoring the performance of our key industry and working very hard in collaboration with the various stakeholders to accelerate the conclusion of sector agreements that will

 

ensure the full implementation of the provincial economic recovery plan.

 

 

The national and provincial fiscus has for some time been acutely constrained thus limiting our ability to expand service delivery to the desired levels. The pandemic has worsened the fiscus and further reduced allocations to provinces. Despite all this, Treasury should be recommended for sticking to the distributive nature of the revenue sharing especially when the provinces are confronted with substantial budget pressures.

 

 

The addition of the R1,7 billion to the equitable share of the province has provided some relief and assurance and ensured continuity of the critical programmes primarily on the employment initiatives targeting young people and healthcare interventions. We also welcome additional resources allocated in the Division of Revenue Bill to assist provinces to implement the wage agreement for 2021/2022. The province has allocated funding towards high ... [Inaudible.] and we will closely monitor the expenditure in the rest of the votes until the end of the financial year.

 

We are aware of the impact of current economic environment and the pandemic to employment prospects to women and young people in our province. Therefore, the allocation of R549 million funds towards the continuing implementation of the Presidential Youth Employment Initiative in the province is most welcome. This funding will contribute to ameliorating the current unemployment situation and also support our efforts to respond to the effects of the pandemic and livelihoods and to protect the existing jobs in vulnerable sectors.

 

 

The Division of Revenue Bill has reaffirmed our unwavering commitment to direct the limited resources towards programmes that are aimed to save lives threatened by the fourth wave of the coronavirus, to protect the economy that is heavily affected by the necessary measures in the circumstances. Our urgent task is to restore the economy to its pre-Covid-19 rates and build it from there to the desired rates which is necessary to alter the historical fault line of poverty and unemployment.

 

 

We will do so by optimising the limited resources and placing greater emphasis on implementing the provincial economic recovery plan. Mpumalanga province supports the Division of Revenue Bill as presented. I thank you very much, Chair.

 

Mr M S MOLETSANE: Thank you, Chairperson, and greetings to all hon members. The Division of Revenue Amendment Bill before the council, makes provision for budgetary allocations to provincial and local government and for the Medium-Term Policy Statement, which was tabled by the finance Minister in November 2021. Chairperson, in its current form, the Division of Revenue Amendment Bill allocates money raised at a national level through taxes, between the three spheres of government, in a manner which does not speak to the economic needs of our society.

 

 

It is guided by the failed and incompetent policies of the Ruling Party which has characterised its 27-year rule, and as a result, South Africa currently stands in economic shambles. The Division of Revenue Amendment Bill is tabled at a backdrop of a society which is experiencing an unemployment crisis, as our unemployment rate continue to rise. Recent statistics demonstrates that, South Africa’s unemployment rate has increased and hit a record high from 34,4% in the second quarter of 2021, to 34,9% in the third quarter. This being the highest official unemployment rate which has ever been recorded since the start of the quarterly labour force survey in 2008.

 

In addition, South African’s inequality continues to grow, and has been laid there by the COVID-19 period, as differences between those living in the urban, rural, township areas have been highlighted by the pandemic. For local government, under the leadership of the Ruling Party, it is characterised by the lack of political will and state capacity, with the majority of our local municipalities operating without money, and on the brink of collapse, as they fail to provide for basic goods and services to our communities.

 

 

As a result, one finds that, it is only in municipalities such as Metros and few white owned areas, which are able to collect enough revenue, to deliver services to their communities.

Throughout the country, affluent areas such as Sandton outplays their township and rural counterparts in various developmental aspect, whether it be in relation to economic development, service delivery, education, transport or provision of basic services. As resources and basic services continues to be allocated in the city centre, in a high rate paying suburbs, this continues to occur, despite extensive discussions and promises around equality, which have been made by the Ruling Party.

 

Instead, one finds that, the allocation of revenue made nationally, continues to be allocated according to what apartheid imagined South Africa to be, a society where black people, workers and the poor townships, lives with poor services, whilst the privileged lives in the affluent suburbs. Since its inception, the EFF is the only party that is being consistent in its call to transform the economy, so that we may see the economic emancipation in our lifetime.

 

 

Our vision is for black people to reclaim public spaces and build in areas where we will see black people fully participating in the economy, living alongside one another, both rich and poor. We stand for policies which stimulates the economy, tackling corruption with local government, create jobs for the masses, and rebuilding of failing state-owned enterprises. Chairperson, the current Amendment Bill in its current form, only deals with the changes effected by the Revised Fiscal Framework and Adjusted Budget, the additional allocation of budget facility for infrastructure funding, additional allocation for wage agreement and health grants.

The reality is that, we can no longer work with the current Division of Revenue Framework, as it only perpetuates apartheid spatial planning.

 

We reiterate the call that we made as the EFF in the past, of putting forward practical, believable and implementable proposals, on how we should change the approach of the Division of Revenue Bill. The EFF has been clear in its stance of the model used to distribute the allocation, which needs to be changed for the additional adjustments of grants, is not a possible solution to the challenges faced by local government. After years of failed economic policies, the time has come, for an approach which shall prioritise the allocation of resources to local government, to build state capacity and localise the economy.

 

 

We cannot continue to allocate less than 11% of the revenue raised nationally to local government, and then expect the transformation to transform the society and do away with the past. The Division of Revenue is one of the legislative instruments that should be used to change our society, and put municipalities at the forefront of society. We call upon government to do away with austerity budget which do not stimulate the economy, and do not provide solutions to unemployment challenge faced. The EFF will not be used to rubberstamp this piece of legislation. The EFF rejects this Bill.

 

Setswana:

 

Ke a leboga, Modulasetilo.

 

 

Ms C LABUSCHAGNE: Hon Chairperson, hon Minister and hon members, our task today is to debate the Division of Revenue Amendment Bill, which on its own, may have a few aspects that could be seen as a step in the right direction. A move of funds away from National Health Insurance, NHI, into other frontline health services. Provinces can now procure directly for the provision of mental health and oncology services, and funding to employ social workers and funding to supplement early childhood development related workers’ income, are all seen as positives.

 

 

However, the so-called overall increased appropriation to provinces is not something to get excited about, as it is compensating for government backing down on the Wage Bill, instead of restructuring the budget away from managerial millionaire salaries, towards service delivery infrastructure and social support to the poor. A big concern is the roll-over to complete projects under the Sanitation Appropriate for Education Initiative. What is even more concerning, is the funding reprioritised to Basic Education to fund a shortfall

 

in the provision of workbooks. Poor planning on fundamentals should not be fixed in this way.

 

 

An amount of R90 million was reprioritised to an indirect grant to provide for municipalities facing implementation of challenges, for example, the funds to manage the Vaal River pollution project. This project is a nightmare discussed many times in this Council, a beacon of no political will or leadership, and very little concern for the quality of life for people living in and around that area. The current state of municipalities will not be fixed by redirecting funds from direct grants into indirect grants without a framework of accountability and proper financial reporting with financial consequences.

 

 

If we take this Amendment Bill into context of the original Division of Revenue and Appropriations Bill, it is clear that this Bill cannot fix the policies and frameworks that allow us to spend increasingly more money servicing debt and bailouts to state-owned enterprises, SOEs. Hon Chair, state capture, cadre deployment, corruption and poor planning in the lead up to the COVID-19 pandemic, put us in a precarious financial position. This Amendment Bill will not fix that. It is time that the ANC government take a note, not from the book of the

 

liberal parties, but from a socialist, communist government with a mixed economy, where the state played a dominant role in the economy from Vietnam.

 

 

James Guild wrote in the Diplomat in February 2021, I quote:

 

 

Vietnam has weathered the covid-19 crisis better than most nations. The spread of the virus has been managed well, and despite turmoil in global markets the economy grown by around 3% in 2020, while round about $19 billion trade surplus Investment inflows have likewise remained strong, leaving the country well positioned for post COVID-19 pandemic recovery.

 

 

How is it that Vietnam has fairs so well? The short answer is that the economy has undergone big structural changed in recent decades, increasing private investment and trade engines of growth. At the heart of which lie dramatic changed in the relationship between the state and the economy.

 

 

Hon Chair, the main restructuring happened in the state-owned enterprises. We need a season of restructuring. The nation is also aware of this, and already chose that direction during

 

the latest local government elections. South Africa needs no more superficial amendments, but real economic policies and frameworks to secure sustainable water, transport and infrastructure development. We need to ensure energy for growth ... [Interjections.] ... by allowing municipalities to create their own power or buy from independent producers. Hon Chair, South Africa needs real reform. We need to get things done. I thank you.

 

 

Mr J MPISI (Gauteng): Thank you, hon Chair and greetings to the Deputy Chairperson of the NCOP and to the Minister, all hon members, special delegates and permanent delegates to the NCOP, representatives from the SA Local Government Association, Salga, and fellow South Africans. Chairperson, can I switch off my camera so that my internet remains stable? Can I do that, Chair?

 

 

The CHAIRPERSON OF THE NCOP: Please.

 

 

Mr J MPISI (Gauteng): Thank you very much. Hon Chairperson, I am honoured to debate the 2021 Division of Revenue Amendment Bill before this House on behalf of the Gauteng province.

Allow me to quote Sun Tzu, who is regarded as one of the greatest strategists, and the philosopher who possessed

 

timeless wisdom when he said, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat”.

 

 

These words of unity, renewal and radical economic transformation have become synonymous with the kind of character the ANC and its alliance partners of today aspire to. This can be recognised through an en passant observation of themes, speeches and resolutions of gatherings such as the national conferences, the January 8th celebrations, Cosatu’s national congresses and the SA Communist Party’s, SACP’s, special and national congresses. These expressions are an indication of the outcome these progressive forces wish to attain in relation to both their respective standing as well as the impact they aspire for South African society.

 

 

It is against this background that I table the debate on the Division of Revenue Amendment Bill which provides a strategy and tactics to overcome the economic difficulties. In the quest to ensuring that the Budget is managed within clear, credible and predictable limits for fiscal policy, the ANC-led government is committed towards ensuring that spending remains within the expenditure limits as targeted within its overall fiscal consolidation strategy and thus in-year adjustments to

 

allocations are confined to: one, unforeseen and unavoidable expenditure; two, appropriation of funds already announced during the tabling of the annual Budget but not allocated; three, the shifting of funds between and within Votes where a function is transferred; four, the utilisation of savings; and five, the roll-over of unspent funds from the preceding financial year. This creates a problem.

 

 

To this effect, additional funding made available through the Division of Revenue Amendment Bill is mainly to account for the increased costs associated with the implementation of the 2021 Public Service wage agreement and the implementation of the second phase of the Presidential Youth Employment Initiative, PYEI.

 

 

I am not necessarily advocating for the wage bill to reach the government’s fiscal ceiling. However, it is important to note that the wage growth within the government’s fiscal ceiling can generate demand through growth and productive growth, and hence create a vicious cycle for ourselves.

 

 

Sadly, insufficient wage growth and more broadly the polarisation of income distribution have contributed to the global economic crisis. In order to realise the aforesaid

 

issues, the adjusted Budget proposed additional funds for the national and provincial spheres of government’s equitable share of nationally raised revenue for the 2021-22 financial year. The national government receives an additional

R43,9 billion and the provincial government receives an additional R21,1 billion for 2021.

 

 

The additions to the national and provincial equitable share will cater for the increased costs associated with the implementation of the 2021 Public Service wage bill and the implementation of the second phase of the PYEI. The increased allocation to the national sphere will also fund the reinstatement of the special COVID-19 social relief of distress grant until March 2022. The purchasing of vaccines and the support to Denel to ensure that it meets its repayment obligations will also help.

 

 

In an endeavour to ensure that the Budget is balanced and with the fiscal envelope, additions and reductions were effected on the conditional grants. However, it needs to be clearly borne in our minds that grants that provide relief ... vulnerable sector of our society were spared the cut, thereby ensuring social safety nets for the poorest of the poor. To this extent, additions to direct provincial grant transfers an

 

amount of R588 million and the reduction of R10 million. The net effect is an additional R578,65 million to the direct provincial conditional grant transfers for the current financial year.

 

 

Although the reductions outweigh the additions, the following additions are noteworthy. An amount of R167,42 million is added to the HIV, tuberculosis, TB, malaria and community outreach grant to allow provinces to procure directly for the provision of mental health and oncology services. An amount of R243 million is added to the statutory human resources, training and development grant as part of the statutory obligation to place medical interns upon the completion of their studies. To safeguard the dignity of a black child,  R113 million is added to the school infrastructure backlog grant to complete the projects that are ... of the Sanitation Appropriation for Education Initiative.

 

 

With regard to the local government conditional grant, proposed additions amount to R1,5 billion and the total reduction of R1,34 billion for the 2021-22 financial year. We propose the adjustment therefore to result in a net addition of R164 million to the local government conditional grant transfers for the 2021-22 financial year.

 

Despite the reduction of the local government conditional grant, the following additions for funding should be noted. An amount of R751 million is added to the direct neighbourhood development partnership grant, R81 million is added to the direct regional bulk infrastructure allocation of the George Local Municipality ...

 

 

The CHAIRPERSON OF THE NCOP: As you move towards closing, hon Mpisi.

 

 

Mr J MPISI (Gauteng): Yes, thank you, Chair. The additional R90 million was reprioritised to the direct neighbourhood development partnership grant.

 

 

In conclusion, the Gauteng province supports the Division of Revenue Amendment Bill as it promotes the alignment of the multiyear planning, prioritisation and goal setting functions of government by organising and structuring the Budget allocations in the way that corresponds readily with national objectives.

 

 

Hon Chair, I thank you and I am convinced that even the pseudo Marxists-Leninists will agree with me that the redistribution ethos of this adjusted Budget is beyond reproach. I thank you.

 

Mr R PILLAY (KwaZulu-Natal: MEC – Economic Development, Tourism and Environmental Affairs): Thank you very much hon Chairperson of the NCOP, the Deputy Chairperson, hon members and delegates to the NCOP, warm greetings from KwaZulu-Natal. We are pleased on behalf of KwaZulu-Natal to be afforded this opportunity to stand before this august House on this very important and critical debate. First and foremost, hon Chairperson, allow me to premise my brief input by joining millions of South Africans in paying tribute to the many health workers who continue to stand on the frontline, facing wave after wave, as we battle COVID-19 and its variants.

 

 

We know and understand what this pandemic continues to do to the public purse and as we stand here today we are very alive to critical nature of the Division of Revenue Bill and what it can achieve in the medium term. We stand at crossroads of South Africa today having been plagued by multiple adverse circumstances that include not only the COVID-19 pandemic but gender-based violence, recent unrest and endemic socio- economic challenges.

 

 

Hon Chairperson, we are more determined than ever to work even harder to reverse detrimental socioeconomic injustices that continue to beset us. The people of KwaZulu-Natal and the

 

people of the country, rank among some of the most patriotic and resilient in the world. In that they continue to look for creative ways to make our country to work despite everything that might not be going for it at the moment. We are the resilient people and we have the history to back assertion.

 

 

Hon Chairperson, in KwaZulu-Natal, we try to rise under a message of a #KZN in Rising and in this recent past we have been pleased to announce and work with the private sector with the Toyota, with the R1,5 billion expansions, but it was South African Pulp and Paper Industries Limited, SAPPI, but it was Richards Bay Minerals, Petrol Pack, all of which combined represented a R12 million expansion of their operations. Of course, these couple weeks ago we were able to just about weeks, the rise next wave of COVID-19, with our International, Intra Africa-Trade Fair which attracted 10 000 delegates over a seven-day period, including 3000 international delegates.

 

 

But, Chair having been seized with the 2021 Division of Revenue Amendment Bill which we are debating today, we are cognisant of the huge burden it places on us to find creative and innovative ways of making use of what we have, however little it may be. We are charged with ensuring that whatever savings we make go to the right project of service delivery,

 

cost effectively and efficiently. This is taking to account that, as our tax and revenue base continue to be under pressure due to multiple factors, which I have mentioned earlier on.

 

 

Today we are tabling our Adjustments Budget ... [Inaudible.]

 

... in KwaZulu-Natal and the Member of the Executive Council, MEC, for Finance Nomusa Dude-Ncube is in the legislature at the moment. Chair, we made a raft of fundamental commitments to assist us to further guard little of what we have in the face of expenditure pressures. These include, but are not limited to monitoring and reviewing of all COVID-19 emergency procurement incurred by departments, public entities and municipalities, ensuring on-budget spending in all departments and public entities through effective in-year monitoring of expenditure; maintaining sound cash management and maintaining the present favourable provincial cash position, which remains under pressure.

 

 

Hon Chair, the 2021 Division of Revenue Amendment Bill provides for changes in the provincial allocations, changes to local government allocations and changes to gazetted conditional grant frameworks and allocations. These changes are prescribed in terms of section 30(2) of the Public Finance

 

Management Act, PFMA, and provides specifically for, (a) adjustments required due to significant and unforeseeable economic and financial events affecting the fiscal targets set by the annual budget, (b) unforeseeable and unavoidable expenditure recommended by the national executive or any committee of Cabinet Members to whom this task has been assigned, c) any expenditure in terms of section 16, which relate to the use funds and the emergency situations (d) money to be appropriated for expenditure already announced by the Minister during the tabling of the annual budget, (e) the shifting of funds between and within votes or to follow the transfer of functions in terms of section 42 and finally (f) the utilisation of savings under the main division of a vote for the defrayment of excess expenditure under another main division of the same vote in terms of section 43, and of course roll-over of unspent funds from the preceding financial year.

 

 

The 2021-22 Division of Revenue Amendment Bill provides in term of ... [Inaudible.] ...provision, the following changes to provincial equitable share allocations, firstly we have additional allocations for a wage agreement my colleagues have already spoken to. Nationally R14,7 billion was added to provincial allocations in 2021-22 to assist provinces to

 

implement the wage agreement as agreed to in the Public Service Co-ordinating Bargaining Council. The province received R3,032 billion in this regard. While it is certainly going to help, it does not really relieve all our pressure.

But, unlike other colleagues who spoke Chair, I wish to congratulate the national government on that settlement, they stood firm but negotiations and compromise is the essence of negotiation between employer and employee.

 

 

Presidential Youth Employment Intervention, in the 2021 budget, a provisional amount of R11 billion was set aside for government to continue its response to address the impact of COVID-19 on unemployment. Applications were received from different sectors and several engagements were held between stakeholders.

 

 

The education sector receives R6 billion for the employment of education assistants at public ordinary schools and general school assistants at public ordinary schools and public special schools. In KZN, the additional allocation amounts to R1,338 billion. Chair, we the we don’t underrate the impact this will have on our unemployment and for young in particular.

 

The health sector receives R350 million to employ staff and assistant nurses. KwaZulu-Natal receives R71,615 million toward this objective, to meet the additional responsibilities required in respect of the COVID-19 vaccination programme ... [Interjection.] ...

 

 

Setswana:

 

Rre J MPISI (Gauteng): E ile ya fela nako.

 

 

Mr J MPISI (Gauteng: Chairperson – Portfolio Committee on Finance): ... can I be protected Chair?

 

 

The CHAIRPERSON OF THE NCOP: Yes, please proceed hon Pillay.

 

 

Mr J MPISI (Gauteng: Chairperson – Portfolio Committee on Finance): COVID-19 wards, high-care units, among others. The social development sector receives ...[Interjection.] ...

 

 

The CHAIRPERSON OF THE NCOP: Can we make this plea, hon Mpisi there and your team. Please make sure that you do not disturb the proceedings.

 

 

Mr J MPISI (Gauteng: Chairperson – Portfolio Committee on

 

Finance): It’s us Chair, it’s not us, mine is muted.

 

Ms M O MOKAUSE: You, you want to watch yourself on television, tv.

 

 

The CHAIRPERSON OF THE NCOP: The screen says so.

 

 

Mr J MPISI (Gauteng: Chairperson – Portfolio Committee on

 

Finance): No, no, it’s not me, Chair, I’m sitting in my ...

 

 

The CHAIRPERSON OF THE NCOP: There’s something wrong with your

 

team there. Please proceed hon Pillay.

 

 

Ms M O MOKAUSE: No, Chairperson he wants to watch himself on tv.

 

 

Setswana:

 

Rre J MPISI (Gauteng): Hai maan wa nsokela. Wa itse ke ituletse mo phaphosingbojelo yaka, ga ke ko phaposiboiketlo. Wa nsokela fela.

 

 

Mr R PILLAY (KwaZulu-Natal: MEC – Economic Development, Tourism and Environmental Affairs): Hon Chairperson, I think you will need the commission of inquiry, to this issue. The social development sector receives R120 million for the appointment of social workers to address the backlog of

 

unemployed graduates. Of this amount made available nationally, KwaZulu-Natal receives a total of R23,2 million.

 

 

In total, the province receives an additional Provincial Equitable Share amount of R4,465 billion. Chair, we appreciate this allocation and as I have explained, almost all this money goes towards creating opportunities but towards the specific need. And that talks to the critical challenges facing the country.

 

 

On some changes to conditional grant applications, the province is affected by the following amendments, nationally, R167 million is converted from the personal services component of the national health insurance indirect grant to the human

immunodeficiency virus, HIV, Tuberculosis, TB, malaria and community outreach grant, to allow provinces to procure directly for the provision of mental health and oncology services. And certainly KZN is now ready to take over the responsibility for funding and management of both grants.

 

 

Hon Chair, the province receives additional funds of

 

R6,045 million for the mental healthcare services component of the grant. In addition, the province receives R22,627 million to the Human Resource Training Grant for the statutory

 

responsibility of absorbing medical interns after completion of their studies.

 

 

So, in aggregate, R178 million is added to the Early Childhood Development grant from the Presidential Youth Employment Initiative. And KZN’s share of this is R38 245 million. This funding is added to the Early Childhood Development, ECD grant under the subsidy component and is to address the shortfall from phase one of the Presidential Youth Employment Initiative that sought to provide unemployment risk support to 70 000 early childhood development related workers impacted by the COVID-19 lockdown to supplement their income. In addition, R357,1 million was approved in respect of conditional grant roll-overs in respect of various grants toward 2020-21 commitments.

 

 

With regards to local government allocations, nationally,  R841 million was made available for the direct Neighbourhood Development Partnership Grant, to fund city-led public employment programmes. R90 million will be shifted from the direct to the indirect component of this grant to provide technical assistance to poorly capacitated municipalities. And in this regard, Ray Nkonyeni Municipality’s direct grant allocation will be adjusted downward by R12,674 million, we

 

don’t believe it lost forever and KwaDukuza will receive

 

R21,921 million.

 

 

The CHAIRPERSON OF THE NCOP: Hon Pillay, as you conclude.

 

 

Mr R PILLAY (KwaZulu-Natal: MEC – Economic Development, Tourism and Environmental Affairs): Thank you Chair, the Urban Development Grant is amended to include a provision to purchase special vehicles for waste management, and we think this is very important. The Neighbourhood Development Partnership Grant removes reference to build environment plans and includes conditions to the Presidential Youth Employment Initiative. Chair, this very important because it is opening space for practical application of implementation of social compact and partnerships at local level.

 

 

In conclusion Chair, in today’s news there was a really inspiring story of a relatively young person, Mr ... [Inaudible.] ... who on a one hector plot, on his own is now producing vegetable that supplies major chain stores. But, the most important thing is what he said. He said, “The road to success is not easy or short”. I repeat, the road to success is not easy or short. Chair on behalf of KwaZulu-Natal we

 

regard the Bill as fair in our priorities. And as KwaZulu- Natal we fully support this Bill. I thank you.

 

 

Ms M L MAMAREGANE: Thanks hon Chairperson, the ANC supports the Division of Revenue Amendment Bill as it continues to be pro poor and redistributive. The ANC remains unwavering in its objective to fundamentally change the racialized and unequal structure of the South African economy and of society.

 

 

Since 1994, millions of South Africans have materially benefited from such ANC government-led interventions as those that have improved access to health, education and housing and created new economic opportunities. In the current phase of our transformation of South Africa, government is committed to accelerating and consolidating the processes of socioeconomic transformation to ensure that it is able to more effectively touch the lives of those millions of mainly black South Africans who have not yet experienced a better life which held such promise at the dawn of our freedom in 1994. For more than

20 years, the government’s economic policy interventions have moved South Africa decisively towards a more inclusive society, as millions of people have been brought into the economic mainstream. This process is ongoing and much further

 

work is required to improve the lives of the millions who continue to live in poverty and despair.

 

 

This Division of Revenue Amendment Bill aims to ensure the equitable provincial share for all nine provinces to respond to the crises imposed on us by the COVID-19 pandemic. Largely, what informs the Bill is the increase to the provincial equitable share mainly to account for the increased costs associated with the implementation of the Public Service Wage Agreement and the implementation of the second phase of the Presidential Youth Employment Initiative. The Presidential Youth Employment Initiative forms part of the public employment programmes to create jobs through labour-intensive projects in response to the rising unemployment associated with the impact of the COVID-19 pandemic.

 

 

The lack of spending, or underspending of the budget items and reprioritization. Obviously, the broader economic environment and fiscal framework have a bearing on the Bill. However, the upward revision of gross domestic product, GDP, growth as a result of improved trade performance in the agriculture and mining sectors which has improved growth prospects and enabled the SA Revenue Service, Sars, to improve its tax collection is a critical factor in this Bill. The Bill will continue to help

 

with stimulating economic growth, assisting with job creation opportunities and providing the much-needed safety net for those who are most vulnerable in our country.

 

 

The Division of Revenue ensures that there is redistribution of resources to the poor and rural areas. Although tax base is concentrated in urban areas, allocations through the division of revenue transfers higher per capita per household amount to rural areas. Also, hon members, provinces that are poorer, receive bigger share per capita. Rural municipalities receive more than twice in terms of their allocations when compared to the metros which have higher own revenue raising abilities, for instance, on average, rural municipalities receive R4 900 per household compared to R11 200 received by metros per household.

 

 

Government’s innovative responses to the pandemic have demonstrated without a doubt the critical role that the state plays and should continue to play in reviving our economy. We cannot, as some opposition parties believe, abandon everything to the invisible hand of the market. The truth is that the market will not repair historical injustices and structural inequities. Transformation will remain a pipe dream without the government’s active participation in the economy.

 

It is important for our people out there to know that the provincial equitable share comprises of a number of important interventions. The R14,68 billion is added to assist provinces to implement the wage agreement of the Public Service Co- ordinating Bargaining Council, PSCBC.

 

 

President Ramaphosa has championed the cause of youth unemployment through the Presidential Youth Employment Intervention, which was launched in February 2020, as well as a number of other programmes that put youth unemployment at the forefront of economic policy, economic stimulus, and the Economic Reconstruction and Recovery Programme. This is a systematic intervention that is meant to eradicate the structural challenges of youth unemployment. The overall objective is to create employment for 287 000 unemployed young people which comprises of 192 000 education assistants and

95 000 general school assistants, this is an enriching experience for young people who will have an opportunity to receive training on various skills that will equip them for future employment opportunities.

 

 

We commend government for the allocation of R350 million for the employment of staff and assistant nurses, who will fulfil the responsibilities required in the COVID-19 vaccination

 

programme, COVID-19 wards, high care units, patient observation and other duties as required.

 

 

The rollover of R210 million of the school infrastructure backlogs grant to complete projects of improving sanitation in schools and creating a safe and conducive environment for learners to learn is worrisome. The delayed finalisation of these infrastructure projects is indefensible and should be resolved speedily.

 

 

Ninety-seven million rands of the rolled-over funding of  R210 million is reprioritised and allocated to the Department of Basic Education to fund a shortfall in the provision of workbooks. There is an increased demand for language, mathematics and life skills workbooks due to changes in teaching and learning practices in public schools.

 

 

In conclusion, I wish to affirm the commitment of those of us who are deployed to work for socioeconomic justice that we will continue the fight against unemployment, poverty and inequality. We must resist any attempts to defocus us. We must remain steadfast in using the parliamentary oversight tools at our disposal to fight unemployment, inequality and to achieve

 

the eradication of poverty in our lifetime. I thank you, Chairperson. [Applause.]

 

 

Cllr M P HLUNGWANE (Salga): Thank you, Chairperson. I hope you’ll hear me. Thanks to the hon Chairperson of the NCOP, hon Minister of Finance as well as the Deputy Chairperson of the NCOP, and all other members as they’ve been greeted since early this morning and all other delegates, it is an honour to address the NCOP during this debate on the 2021 Division of Revenue Amendment Bill. We debate this Bill after the outcomes of the 2021 local government elections which store in newly constituted council and their leadership being chosen. These are the cohorts of the mostly new councils that will be advancing the aims of this Bill. We also have to acknowledge that the face of leadership in council also changed with these new leaders who have been elected under different government formations like the coalitions in some municipalities particularly in the economic hub of the country. That on its own we include Gauteng and mostly KwaZulu-Natal ... [Inaudible.]

 

 

Hon Chairperson, allow me to add that this debate is also held during this ... [Inaudible.] ... year with the devastating impact of the coronavirus disease 2019, Covid-19, pandemic on

 

the economy and the recent discovery of the Omicron variants which is already putting the ... [Inaudible.] ... motion and pace of economic recovery strategies and plans that the government will ... [Inaudible.] ... to implement. SA Local Government Association, Salga, as an organised local government took part in the consultations processes on the other allocation of national raise revenue as dictated by the Intergovernmental Fiscal Relations Act of 1997. So far, Salga has been involved in consultations on the allocations for national rise revenue at the Budget Forum Lekgotla which took place on 23 July 2021. The budget forum on 22 October 2021, has ... [Inaudible.] ... as the recent parliamentary sitting of the Standing Committee and the Select Committee on Appropriations on 24 and 30 November 2021 respectively.

 

 

Hon Chairperson, Salga acknowledges the economic situation that the country is in and the efforts that the national government that is taking in addressing this economic challenges. The microeconomic and fiscal environment outlook as raised by the Minister of Finance in his Medium-Term Budget Policy Statement on 11 November 2021, dictates that the economy is expected to grow by 5,1% in the 2021, but projected to return to pre-pandemic levels in the 2022 at 1,8%. The Covid-19 has exacerbated the South African economic crisis,

 

particularly hitting social spending. This calls for structural reforms on public finance by exercising restraint and prudent financial management. A positive economic outlook will only be realised through substantial monetary and fiscal support.

 

 

Salga supports government in reducing the budget deficit and stabilising the debt to gross domestic product, GDP, ratio. Salga further supports the macroeconomic strategy of the government including fiscal consolidations to curb additional spending and maintaining the expenditure ... [Inaudible.] ... The increase in social spending to minimise the impact of Covid-19 on the household is well-received by the organised local government.

 

 

Hon Chairperson, the budget forum held on 22 October 2021, Salga submissions on the 2021-22 adjustment local government fiscal framework were that: Number one, budget facility for infrastructure. On the reduction of the public transport network grants for City of Cape Town an addition of

R83 million regional bulk infrastructure grants for George Municipality. Salga supports the items as it recognises that the funds are returned by the City of Cape Town due to overestimations of the project fund and propose that this must

 

be redirected to other local government projects within the Medium -Term Expenditure Framework, MTEF.

 

 

Two, the Presidential Youth Employment Initiatives. Salga supports the additions of the R831 million in neighbourhood development partnership grants and further submitted that though the initiatives are welcomed it must be aligned to the local government functions of the grant. The initiatives should benefit the whole local government sector and not just cities. Salga also recognises that the initiatives temporary and responds to the Covid-19 impact on the economy.

 

 

Three, the rollover of regional bulk infrastructure grant. Salga supports the rollover of R582 millions towards the Emfuleni Vaal River pollution remediation project. The Vaal River pollution requires an urgent interventions and Salga welcomes the rolling over of the grant and response to a municipal crisis. The reprioritisations of the neighbourhood development partnership grants. Salga does not support the shifting from direct to indirect components of the R90 million to fund technical assistance of the Mogale, KwaDukuza, and the West Rand. Salga generally does not support the stopping of direct transfers to municipalities without any empirical grounds for such proposals. Salga has recommended that the

 

department demonstrates what steps they had taken to support well-buildings capacity of the affected municipalities before the decisions to initiate schedule 6.

 

 

Hon Chairperson, further at the budget forum held on 22 October 2021, Salga submission was that it does not support the 100% allocations of the municipal’s system improvement grants to support the district development model. While the model is welcomed initiatives by Salga, our concerns are as follow: it’s around the areas of how municipal systems would be funded through the Division of Revenue Act for low capacity municipalities and low revenue base municipalities system improvement grants becomes unavailable for that purpose.

Secondly, building the financial resilience of local government.

 

 

As I move towards closer, Hon Chair, regarding local government equitable share allocations, there’s a risk to the basic services component as a result of the ... [Inaudible.]

... between Eskom and National Energy Regulator of South Africa, Nersa, which put a risk for the local government sector or ... [Inaudible] ... to contend with double digit electricity heights that must be passed on to consumers which would further exacerbate the Covid-19 impact on households.

 

Hon Chairperson, as organised local government we are encouraged by the foundations laid out by the 2021 Division of Revenue Bill. We know that the Bill proposes to allocate 48,4% to national departments and 42% to provinces, and 9,6% to local government over the next three years. This proposal shall result in resources allocated over the next three years to national departments contracting by an annual average of 1,8% provincial resources increasing by a 0,7% and the local government increasing by 4,1% thereby it begins a journey towards a vertical allocation that is more equitable to the local sphere of government.

 

 

In conclusion, hon Chairperson, Salga continues to support local government through its involvement in several intergovernmental structures and initiatives. Salga is also appealing to incoming councils to exercise prudent political leaderships and oversight for the betterment of our communities.

 

 

Xitsonga:

 

Ndza khensa, nkulukumba Mutshamaxitulu.

 

Mr S F DU TOIT: Thank you, Chair. The ANC government is the slave-master of South Africa! Chair, Rafael Cruz, a Cuban American said:

 

 

“Culture of dependency leads to a life of slavery being totally dependent on government. And government dictates where they go in life”

 

 

How is this relevant to this Bill, one may ask? Because this amendment Bill is indicative of governments initiatives to keep South Africans dependent. Government dictated through regulations, school hours, business hours and the economy, that resulted in job losses, underperformance in schools, incomplete housing projects, incomplete infrastructure projects, underspending of equitable shares to provinces and yes, greater state dependency.

 

 

Afrikaans:

 

’n Mens sou verwag dat daar in die huidige ekonomiese krisis waarin Suid-Afrika homself bevind eerder gefokus sou word op die stimulering van die ekonomie om werkskepping te weeg te bring, of op die vestiging van infrastruktuur om permanente werksgeleenthede te verseker, maar nee. Die slawedrywer erken aan die een kant dat die regering se salariskomponent te groot

 

is, maar dan word R14,6 miljard aan die provinsies oorbetaal om die regering se salarisooreenkoms te eerbiedig.

 

 

Dit stop nie daar nie. Ten spyte daarvan dat die regering nie net toegelaat het nie, maar die wurgende inperkingsregulasies geimplimenteer het, en bygedra het tot die werkloosheid van miljoene in Suid-Afrika, kom hy nou na vore met die Presidensiële Jeugwerkskeppingsprojek, waartydens ’n verdere R6,47 miljard spandeer word om tydelike werke te befonds en sodoende meer mense afhanklik van die staat te maak en om hul gemoedere te sus.

 

 

Eers word Suid-Afrikaners letterlik ingehok, ingeperk en ontmoedig, and daarna kom hy met krokodiltrane nader, gebruik

... [Onhoorbaar.] ... smalend sy sogenaamde septer van omgee uit te steek, en die las op die belasingbetaler te vergroot, terwyl hy populisties na die honger monde ’n leksel van dit wat ons self kon verdien gee om te laat proe.

 

 

English:

 

Municipalities can’t honour their debt, infrastructure is corroding and un-serviced illegal human settlements, are expanding by the day, whilst under-expenditure of normal grants is taking place. The slave-master just turning a blind

 

eye. Most local municipalities are in financial distress as a result of the slave-masters doing. Cadre deployment and the all so familiar corruption. He allowed municipal executives and employees to be laid-back and created cheap-expensive Expanded Public Works Programme, EPWP temporary employment, that half-heartedly tend to unproductive chores.

 

 

Afrikaans:

 

Onderspandering van fondse bly ’n groot strop om die nekke van die provinsies. Munisipaliteite het op die ou end inwoners in hul munisipale areas wat die spit moet afsteek.

 

 

Daar was geld vir die ontwikkeling van buurte, maar dis nie spandeer nie. Daar was geld om infrastruktuur op te bou, maar dis ook nie aangewend nie. Daar was geld om provinsiale paaie op te gradeer en in stand te hou, maar die fondse moet weer na die Nasionale Tesourie oorbetaal word weens wanspandering.

Daar was selfs geld om puttoilette by skole op te gradeer na spoeltoilette of om dit te vervang, maar daardie projek is steeds nie afgehandel nie. Gelukkig word R210 miljoen oorgedra na die nuwe jaar om effe aandag aan die problem te gee.

 

Miljoene rande gaan die land uit om Suid-Afrikaanse mediese studente in Kuba te ondersteun. Ek sê “ondersteun”, Voorsitter, want die studies laat veel te wense na.

 

 

English:

 

Tax payers are feeling the sting of the rod on a daily basis, the stench of sewage in and around cities and towns are so familiar. We stumble through the potholes, finding our way with a smoking lamp because of load shedding. Tears filled with disappointment roll down so many peoples cheeks, as they watch as another bailout is given to state-owned entities like Denel. As I conclude Chair,

 

 

Afrikaans:

 

Ons mag nie toelaat dat hierdie slawehandelaar ’n houvas op ons kry nie. Ons mag nie in sy net van misleiding verstrengel raak nie. Hy het dalk die geld uitgedeel, maar ons bepaal ons eie toekoms.

 

 

English:

 

The CHAIRPERSON OF THE NCOP: Your time is up, hon member.

 

 

Afrikaans:

 

Mnr S F DU TOIT: ... [Onhoorbaar.] ... as wat jy hom toelaat. Kom ons hou hom verantwoordbaar en ontbloot elke slinkse daad. Ek ... [Onhoorbaar.] ... sweepklap op my rug toe te laat. Wat van jou?

 

 

The VOORSITTER VAN DIE NRVP: Jou tyd is om!

 

 

English:

 

Mr S F DU TOIT: I still have 20 seconds left, Chair. Please check your watch and let’s see if you are capable of doing your work!

 

 

Setswana:

 

The CHAIRPERSON OF THE NCOP: ... [Go se utlwagale.] ... Ntate, ke a bua.

 

 

Mr S C SEKOATI (Limpopo): Thank you, Chairperson of the NCOP, the Deputy Chairperson, the Chief Whip, Minister of Finance, South African Local Government Association, Salga representatives in the sitting, special delegates of the NCOP. Chairperson, the debate takes place at a time when our country and the world are shaken to the core by COVID-19 pandemic. It has affected all the aspects of our lives. In particular, the economy and its prospects of growth and absorption of labour

 

at all levels. It is predominantly the effects of this pandemic that led to the decline in economic performance at a global level which in turn has affected our nation’s economy.

 

 

The South African economy is expected to grow by 5,1% in 2021, from a 6,4% contraction in 2020, and over the next three years the growth of the local economy is expected to average 1,7%, inflating some structural weaknesses. Limpopo provincial Gross Domestic Product, GDP, has been on the decline since 2018 when it decreased from 2,1% in 2017 to 0,6% in 2018. It further

 

 

declined to -0,2% in 2019 to a -7,2% in 2020. It is expected that as mining and other industries recover, the provincial economy will also recover going forward.

 

 

We take note of the Division of Revenue Amendment Bill allocations to the different provinces and municipalities. We thank the national government and the national Minister of Finance for taking efforts to study and understand the conditions of different provinces and municipalities. Our country’s provinces are different from one another. They have different needs and economic dynamics and due to the historical nurturing of the economy and the social character of the provinces.

 

We therefore need highly differentiated approach to the development and funding of the vastly different spaces. We must indicate to this House that provinces like Limpopo has vast rural conditions that lack basic infrastructure required to ensure economic ... [Inaudible.]

 

 

The CHAIRPERSON OF THE NCOP: Hon Sekoati, please proceed.

 

Let’s try again. Hon Sekoati ...

 

 

Mr S C SEKOATI (Limpopo): Yes, Chair thank you. We must indicate to this House that provinces like Limpopo has vast rural conditions, that lack basic infrastructure required to ensure economic growth and sustainability. An example of this are lack of quality of roads and functional industrial development zones for processing and manufacturing of goods. Service delivery infrastructure such as village and township internal roads and sanitation are poor and in some instances none existence. The impact of this situation is that the resources allocated to provinces like Limpopo have a deep hole to fill and it will take some time before we could realise the developmental progress as expected by most of our communities.

 

 

The Constitution of the Republic of South Africa of 1996 and the Intergovernmental Fiscal Relations Act requires that needy

 

provinces and municipalities should be supported to be in a position to enable the residents of those provinces to experience good quality lives so that their rights to life and enjoyment of all other rights are protected.

 

 

The level of crime and gender-based violence in our communities are alarmingly high and we are doing everything in our power to address the scourge with immediate effect. Our children and women of our country and province should be free to live without fear at work, in the streets and at home.

Provincial governments, in particular, Department of Social Development and Police Service should be adequately resourced to be able to deal ... [Inaudible.] ... and reverse gender- based violence and femicide pandemic.

 

 

The rate of unemployment in the country is very high. The picture gets even gloomy when we drill deeper into figures of rural provinces. It is in these spaces that we need to continue social protective packages that are designed to assist the poorest of the poor. Only those that are well to do who are not looking forward to such packages. The current social relief of distress which comes to an end in March 2022 is a good model of intervention in a desperate situation. We therefore need to draw lessons from it and consider developing

 

it to support those who are at the brink of absolute poverty. We must start to work on this intervention now and not wait until we are hit by a disaster.

 

 

As a province, we have just tabled Limpopo provincial adjustment budget and Adjustments Appropriation Bill on the 30 November 2021 in our legislature and in relation to the 2023 Medium Term Expenditure Framework, MTEF, the Limpopo equitable share has been increased by R82,5 million in 2023 and R585 million in 2023-24. The Limpopo Province has also been allocated R1,5 billion to fund the 2021 wage agreement. The provincial own revenue increased from R1,3 billion budget 2021-22 financial year to R1,5 in 2022-23 going to 1,6 in 2024-25 financial year. The total provincial sources of funding will be increased by 1,4% in 2023 and decrease by - 1,6% in 2023-24 and increase by 3,8% in 2024-25 financial

year. The total provincial allocation to departments for 2022-

 

23 financial year amounts to R71,6 billion which reflects positive growth of 4,4% when compared to R68 billion main appropriation of 2021-22.

 

 

Limpopo’s share of revenue allocations from the Division of Revenue Bill before this House, constitutes a fair sense of funding requirements of the province but just fail a little

 

short to meet the needs of the province. It is therefore important for National Treasury to adjustment the figures upwards to assist this province to achieve its developmental objections and we welcome and support the Division of Revenue Bill. I thank you, Chairperson. [Applause.]

 

 

Ms D BAARTMAN (Western Cape: Chairperson: Finance, Economic Opportunities and Tourism Committee): Hon Chairperson, fellow South Africans. The Division of Revenue Amendment Bill B-19 2021 saw an increase allocation of R21,1 billion to provinces and R43,9 billion to national departments. A R2 billion increase has been allocated to the Western Cape which has increased the budget for the 2021-2022 financial year to R56,4 billion to impart to the Presidential Youth Employment

Initiative and the public wage. In particular, R1,4 billion of this R2 billion increase being made available for the Public Wage Bill for the current financial year.

 

 

While we welcome this funding due to the uncertainty surrounding the Public Wage Bill, the amount does not make provision for the previous year or the two outer years. These funds will also not increase the headcount of departments as it will simply be allocated for salaries owing. Further, on the remaining amount of the R2 billion, R566 million will be

 

allocated for education school assistants and R36 million to health staff, including nurses as part of the Presidential Youth Employment Initiative, which needs to be linked to current programmes.

 

 

The Western Cape Budget Committee unanimously resolved to include in its negotiating mandate concerns regarding the sustainability of the Presidential Youth Employment Initiative Grant, as it is a short-term solution to a long-term problem. This stopgap measure will not create the sustainable solution; we need to combat youth unemployment.

 

 

The Committee further highlighted that the National Treasury should consider disaggregating the data within the budgetary processes and that, the Presidential Youth Employment Initiative should provide us with similar statistics for gender and youth. This recommendation was made in line with international best practices related to gender budgeting and disaggregation of data.

 

 

Furthermore, we appreciate the increase in the HIV, TB, Malaria and Community Outreach Grant of R23 million. These funds are essentially a functional shift, meaning that provinces have demonstrated their readiness to take over the

 

full funding and management of these services. This does not mean that the service delivery will increase or that there will be extra funding for staff or for the mental health and oncology services. In layman’s terms, we are simply moving money around from one bank account to another.

 

 

Similarly, for the R17 million received for early childhood development centres, there is also a functional shift. We are always grateful when a department receives a new mandate and the funding follows. In fact, we are one of the provinces at the forefront of this argument. We believe that where provinces have proven themselves to be capable, more power and funding should be given to them. While we appreciate this allocation for the early childhood development, ECD centres, again, funding has not been allocated for the increase of early child development centres or its staff. Again, in layman’s terms, we're moving around money from one bank account to another.

 

 

We also see that both the Western Cape and Gauteng Provinces will be severely affected by the change in the health component of the provincial equitable formula over the Medium- Term Expenditure Framework period. We cannot view this Bill in isolation of that Medium-Term Expenditure Framework period. In

 

the Western Cape specifically, our health budget will be cut by the national government by R1.2 billion over the Medium- Term Expenditure Framework period and the provincial equitable share will see a net decrease of R540,5 million over the medium term. This at a time when provinces are fighting a pandemic.

 

 

The moral of the story is that the provincial equitable share does not incentivise, it punishes good governance, and thus the provincial equitable share is far from equitable. In layman’s terms, if you are not familiar with the workings of financial information, you may look at the division of revenue across provinces and simply see an increase in numbers. What you won’t see is the fact that our budget is increasing nominally by 1.5% while National Treasury has estimated inflation at 4.5%, meaning that our provincial budget will decrease by R8,4 billion in real terms, because of the low inflation increases over the medium term.

 

 

You will see increases in conditional grants. What you won’t see in the numbers is that all provinces’ independence is being undermined and that many if not all of the increases are functional shifts, again meaning that National Treasury is simply playing around with money in different bank accounts.

 

You won’t see baseline cuts to budgets in this particular Bill, currently it is a can to provinces being owed R10 and you're given five rand now as a consolation prize, and now you're also being told how to spend that five rand instead of being able to privatise the funding yourself, which brings into contestation the principle of government being closest to the people.

 

 

It remains a grave concern that each year when making adjustment allocations, the National Treasury awards all provinces education departments their funding at the end of a calendar year. If you receive money in December each year when schools have closed in businesses such as in the construction industry start closing the doors for the festive season, it is very difficult to actually spend that money within the January/February time period. We once again need to ask for a rollover of funding and if you are not successful, such funding needs to be surrendered. Consideration should be given by National Treasury to this operational difficulty, rather make the money available when it is possible to spend it.

 

 

Further, the provincial equitable share formula still makes no provision for the inclusion of community safety and in particular gender-based violence as a component of the

 

provincial equitable share formula, to capacitate the efforts to combat violence and criminal activities within provinces. More than this, the current Medium-Term Expenditure Framework period sees plans to shift colleges of agriculture to the national government and this would negatively impact on the workings of Elsenburg Agricultural Training Institute as well as the impact on the work of the Provincial Department of Agriculture. Rather than shifting the college to national government, all accredited colleges should be included in the allocation of National Student Financial Aid Scheme, Nsfas bursaries and funding.

 

 

Finally, we cannot continue to pass Division of Revenue Bills within 72 hours when the NCOP’s his own Rules allow for six weeks for processing of section 76 legislation. In the Lamosa Judgment, the court held that the lack of public participation and the then four weeks self-imposed timeline as quoted by the court was unconstitutional, and ...[Inaudible] ...with a doubt that even the new six weeks Rule would suffice to pass constitutional ...[Inaudible] ... especially a more technical and substantive legislation. I shudder to think what a court might say about 72 hours.

 

Chairperson, while I have not sufficient time to deal with some of the other small adjustments within the Bill, it is my belief that I covered most of the significant points raised by the Western Cape Province. On this basis, the Western Cape does not support this Bill. I thank you.

 

 

Mr W A S AUCAMP: Hon Chairperson, I just want to make sure that my time is correct because I saw that there has been quite a lot of timing mistakes. Thank you for the opportunity. Every time that we address this House on either the Division of Revenue Bill or on the Division of Revenue Amendment Bill, I get this déjà vu feeling, a feeling of having already been here and already experienced this situation before. Why is that so?

 

 

Is it maybe, once again, as so many times before, that we see that some valid requests from the provinces are ignored as it was continuously done in the past. Or is it because, once again, we were exposed to a completely rushed process. Or might it be that, once again, my personal experience as the representative from the Northern Cape was that the Northern Cape Provincial Legislature tried to blatantly disrespect the processes that needed to be followed? Let me give you a few examples of why we get that déjà vu feeling. How many times

 

this year did we, as the DA, warn the previous Minister of Finance that he cannot put forward a Budget that did not make provision for increases in the public wage bill without the approval and co-operation of the various labour unions? Once again, we were right. The previous Minister should have foreseen that this will happen, especially after being warned about it by the DA on so many occasions. The adjusted appropriation for the increase in public wages was therefore most certainly not an unforeseeable item, which is one of the prerequisites for being allowed as an adjustment to the Appropriation Bill.

 

 

Time and time again we hear the pleas of the provinces with a large rural component and large geographical spread that the Provincial Equitable Share Formula needs to be changed in order for it to accommodate the unique needs of these provinces. But, time and time again, déjà vu, we hear the same answer from National Treasury saying that they are close to coming up with a new model for determining the Provincial Equitable Share Formula. When will this finally happen? How many times before, did we hear the pleas of the farmers in the Northern Cape and other drought-stricken provinces that they need more assistance in order to combat the prolonged effects of the drought that is currently being experienced? As well as

 

their pleas for help to overcome the devastating effects that the recent veld fires had on their farming activities. Every time we hear that National Treasury tells us that no additional funding can be made available if those areas are not declared as disaster areas, which is quite right. But once again our pleas to the provincial or national Government to do so fell on deaf ears, déjà vu.

 

 

This House unanimously passed a motion, put forward by me, in which this House requested the premier of the Northern Cape to declare the areas that were so adversely affected by the recent veld fires in that province as a disaster area. It was the most logical thing to do in order to pave the way for the appropriation of the additional funding to those affected areas. Why then, as so many times before, did this not happen?

 

 

A lot of people in this House of Parliament might wrongly think that, when I bring up the plight of our farmers, as I have done so many times in the past, I am talking about white farmers. Nothing can be further from the truth. When we stand up for our farmers, we stand up for all of our farmers, irrespective of the colour of their skin. It is, therefore, important to mention that during the public participation process that took place in the Northern Cape, we heard the

 

inputs and the desperate pleas of these farmers, and no, hon Chairperson, these people were not only the white farmers of those provinces, it was also the black and coloured farmers. These are all farmers, irrespective of the colour of their skin, who simply cannot carry on with their farming activities if they will not get immediate assistance from the government. Certainly, they must have also felt this déjà vu feeling because they became used to being ignored by the various ANC governments.

 

 

Time and time again, we insist that bad financial management, or the misappropriation of funds or corruption-driven decisions must lead to consequences for those that commit them, yet we still see that so many officials that committed these financially unsound and criminal acts remain in their positions without any consequence management being implemented. Again, we get this déjà vu feeling, knowing that this ANC government has in the past done everything to protect its cadres. Fortunately for South Africa, we experienced what happened on 1 November when, for the first time, I believe, that the ANC will get a déjà vu feeling in future when they will see that they will never get a majority in South Africa again. The DA does not support this Bill. I thank you. [Applause.]

 

Mr E J NJANDU: Good afternoon, hon Chair and Deputy Chair, hon Minister and Deputy, hon Chief Whip, all House Chairpersons and members, the Division of Revenue Amendment Bill 2021 is presented before this House. Let me first put this matter into perspective to the opposition that the Select Committee on Appropriations cannot change the final mandate of provinces.

The Act on final mandate, section 3, every final mandate required ... in terms of this Act must be on the letterhead of the provincial legislature. This is the mandating procedure of provinces Act 52 of 2008.

 

 

Chairperson, since the dawn of COVID-19 pandemic the government of the National African Congress has implemented strategic interventions, to assist millions of South Africans to alleviate the storm brought about by the Pandemic. The ANC has a historic mandate to reverse the injustice of the past and redistribute the country’s wealth in the interest of those who have been deprived for years from accessing grant opportunities.

 

 

The MTBPS and local government, the changes over 2021 the MTBPS to provincial and local government equitable share formulas aimed to improve the equal division of revenue going forward. Over the MTBF, the local government sector is to be

 

allocated R450,6 billion, R2,54 billion in the form of unconditional grants and R149,7 billion in conditional grants. Local government is at the centre of service delivery due to its close proximity to the people.

 

 

Hon Chairperson, grant adjustments and net amount of

 

R751 million is added the direct Neighborhood Development Partnership Grant. The purpose of the grant is to fund, support and facilitate the planning and development of Neighborhood Development programmes, which is a very important programme, hon Chair, and projects that will be a catalyst for further development in local and rural areas. This allocation is to capacitate local government to create 32 366 jobs through precinct management and community safety, place making, greening integrated waste management, digitalisation, with a special focus on the poor in marginalised areas and economic nodes. This programme should be enhanced and extended the necessary means found to ensure its sustainability.

 

 

A further R90 million is added indirect Neighborhood Development Partnership Grant to fund projects, preparation, planning and implementation for municipalities facing implementation challenges. The funding specifically targeted to support following municipalities, City of Johannesburg,

 

Mogale City Local Municipality, KwaDukuza Local Municipality, West Rand District Municipality, social Sol Plaatje Municipality, the rail Nkonyeni local Municipality and the City of Cape town.

 

 

In government’s effort to respond to the structural challenges of unemployment. This Bill appropriates an additional

R841 million to then direct component of Neighborhood Development Partnership Grant allocated for the Presidential Youth Employment Initiative to create much-needed jobs, particularly for the young people of South Africa.

 

 

The grant framework is, however, amended to remove reference to build environmental performance plans and include the conditions attached to the approval of funding for the Presidential Youth Employment Initiative. The condition requires cities to expand to the existing Public Works programme projects and enter into a new partnership with the private sector and the civil society.

 

 

Chairperson, further note the inability the DA-led City of Cape town to spend R1,3 billion on its MyCiti bus services, notwithstanding the serious challenges of a deteriorating public transport infrastructure in the City. Public transport

 

is the only source of reliable transport for the public. This action by the DA yet again demonstrates its antipoor and anti- working class stance, as the bulk of our people who are dire need of this service are ordinary poor working class people.

This is inexplicable and hypocritical to say the least. It is a shame that the DA provincial administration in the Western Cape has delayed the appointment of professional service providers for building the design for the Klipfontein Hospital. As a result of this failure, R10 million is taken away from the health revitalisation grant.

 

 

Lastly, Chair, while the ANC supports this Bill, the Division of the Revenue Bill recognises that apartheid’s legacy of selective underdevelopment has had a wide range of effects across the country. As a result, the Bill’s allocations serve as a tool for redistribution and the broader transformation of our society. The ANC supports this Bill. Thank you very much, Chair.

 

 

The MINISTER OF FINANCE: Chairperson, Deputy Chairperson, the Chief Whip, my Chair of appropriation hon Mahlangu, delegates from the provinces, hon members, it is my honour to address you today.

 

Hon Chairperson, much has been said by the hon members. An indication which is of an interest that members have immense themselves in the Division of Revenue Bill, the quoted chapter and verse programme by programme what is contained in that Bill. Mine is not to repeat that but to make few observations.

 

 

Hon Chairperson, the first observation is that we are debating this Bill in the context of an environment of the fourth wave of the pandemic whose cost in terms of human life and resources is unknown. Of course we are debating with the Minister of Health its implications from a resource point of view. If resources are required provision will be made in the main budget.

 

 

The second aspect is the poor performance of the economy. As we sit here, Statistics South Africa has released the figures where the second quarter is 1,2 which is more growth as far as I am concerned. And that growth has got implications for the revenue that we collect.

 

 

Chairperson, the third point is the level of crime in our economy which is a matter that needs serious attention. As we speak, the coal industry has not been able to sustain because of cable theft, lost about R15 billion of revenue because they

 

can’t ship coal to Richards Bay. That’s the implication on our revenue focus. So, those are some of the things we need to be looking at.

 

 

All these challenges are going to require all of us to think through whether we call our spending parties, in other words it’s going to require from all levels of government effective budgeting processes where we targeting programmes that are likely to have a larger impact. Not only an effective one and efficient management of those resources.

 

 

Those are two fundamentals that must guide us moving forward. In addition to that, we must think carefully about making hard choices, what is it that we need to find and what is it that we can’t find given this resource constraint.

 

 

I think if we look much at what hon members have said about the austerity budget, I made a point that if you look at the social wage of this budget it’s 60% of non-interest spending. Such a spending cannot by all state of imagination be referred to as austerity. In addition, we have said we have got over the MTEF, Medium Tern Expenditure Framework, R300 billion on infrastructure average on average of a R100 billion per annum

 

that by all set of imagination cannot be referred to austerity.

 

 

The key question is going to be the quality of that of that spend. That’s what we should be working together in looking at. National Treasury publishes every quarter in terms of section 32 the spending patterns of departments which assists hon members to conduct oversight functions and see the spending patterns and the quality of spending on time.

 

 

We want to make a point of youth unemployment which everyone is [Inaudible.] and I think one of the key issues that we need to be debating is that we can grow this economy to ensure that these young people have decent jobs and not only rely on grants. That’s one aspect I share with the hon member from the FF Plus. We must not create a dependency syndrome, we must develop the economy and make people earn a decent living.

That’s the work we should be focusing on.

 

 

Hon Chairperson, the hon member from the DA hon Bargman, talked about spending money at the tail end of the budget process and I want to remind the hon members that the fundamental principles underpinning the Medium Term Expenditure Framework is to ensure that departments and

 

provinces have got line of sight over their allocation over a three-year horizon which assists them to plan ahead for their expenditure.

 

 

There’s no reason that by April you have not made your own adjudication of tenders when you have got line of such between now and what you are likely to receive at the beginning of April. That’s the fundamental aspect of the Medium Term Strategic Framework. Then if you do not do that, the consequences of that is that you start at a tender process and that therefore you will have [Inaudible.] which becomes a problem.

 

 

Chairperson, the Medium Term Expenditure Framework provides for a proper planning which gives departments and provinces timelines for planning over a clear horizon. I want to assure hon members of the NCOP that as a former MEC for finance, I understand fairly well the debates about the vertical split and these implications of provinces.

 

 

I was one of the proponents and fighters in making sure that a proper equity in the vertical are split. I want to make that commitment that I would agree with that and I will support that argument. I will also support an argument which again has

 

been raised by hon member which is funds follow function. Again, as the former MEC for finance, it’s one of the battles I fought that funds must follow function. It is an important aspect of the intergovernmental fiscal relations.

 

 

Chairperson, as I have indicated and the members have said a lot about [Inaudible.] This document does not talk to the 2022 budget; we are still going to come to that. What we are doing at the moment is in fact the beneficiaries to sub national spheres of government to provinces and municipalities in the sense that you’re revising their revenues upward.

 

 

One of the challenges that we need to be talking about is the municipal sphere of government. I sympathize with the view that there may be to some extent some challenges with the vertical equity but to reduce the challenges in municipalities surely to have financial programmes I don’t think it’s helpful because what it does is that we are not going to address all the challenges that we are talking about.

 

 

Chairperson, as we are sitting here we are aware that technically mayor of Mpumalanga [Inaudible.] Forty-two other municipalities throughout the country face similar challenges and I think if we downplay those challenges facing those

 

municipalities we are going to be unfair to those municipalities.

 

 

In dealing with those challenges we are going to require unwavering support of this NCOP House because part of the pressures and the assistance that we need to be doing, we need to do that working with the NCOP.

 

 

Chairperson, as I have indicated most of these numbers have been cited by hon members, I don’t want to repeat them, all I can do is join those who say they support the Bill. The hon member from the DA who made reference to farmers I must invite him to chat to the farmers’ association. We have been in interaction but obviously you cannot talk to each individual farmer but we have been in interaction with farmers’ association as of last week if we invite him to talk for instance in the Agri SA Christo van der Rheede will tell him that we are talking to the farmers. We are not underestimating the challenges, we are talking to them about how to resuscitate the land bank, we talking to them about back structure funding for emerging farmers and how to back structure commercial farmers. We are having all those discussions with farmers on a day to day and not on an abstract.

 

Chairperson, I think with those few comments, I urge the NCOP to support the Bill and I don’t have to repeat the numbers and the statement that have been made by the members. Thank you very much Chairperson, Thanks to you too, I have not seen you for ages.

 

 

Debate concluded.

 

 

Question put: That the Bill be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.

 

 

AGAINST: Western Cape.

 

 

Bill accordingly adopted in accordance with section 65 of the Constitution.

 

 

MUNICIPAL SYSTEMS AMENDMENT BILL

 

 

(Consideration of Bill and of Report thereon)

 

 

Mr T S C DODOVU: Thank you very much, hon Deputy Chair of the House, permanent and special delegates, all hon members

 

present and those who are on virtual, it gives me great pleasure to present the Report on the Municipal Systems Amendment Bill on behalf of the Committee on Co-operative Governance and Traditional Affairs, Cogta, Human Settlements, Water and Sanitation.

 

 

The Select Committee on Co-operative Governance and Traditional Affairs, Water, Sanitation and Human Settlements has fully deliberated on and considered the Municipal Systems Amendment Bill, which was referred to it on 4 December 2020 as a section 77(b). This Bill is very much important in the life of local government because it insert and amend certain definitions. It makes further provision for the appointment of municipal managers and managers that are clear accountable to municipal managers. It provides for procedures and competency criteria for such appointments of managers, and its purpose is also to set time frames within which performance agreement of municipal managers and managers directly accountable to municipal managers must be concluded.

 

 

The amendment also makes provision for the evaluation of performance of these managers. It requires employment contracts and performance agreements of municipal managers and managers directly accountable to municipal managers to be

 

consistent with the Act and any regulation made by the Minister. It seeks to regulate all staff, systems and procedures of a municipality to be consistent with uniform standards determined by the Minister by regulation.

 

 

This is very much important because this Bill seeks to prevent municipal managers and managers directly accountable to municipal managers from holding political office in political parties, to regulate the employment of municipal managers who have been dismissed, to provide for the Minister to make regulations relating to the duties, remunerations, benefits and other terms of and conditions of employment.

 

 

This Bill is very important because it provides for the approval of staff establishment of municipalities by the respective municipal councils and to prohibit the employment of a person in a municipality if the post to which he or she is appointed is not provided on the staff establishment of that municipality.

 

 

This Bill enables the Minister to prescribe frameworks to regulate human resource management systems for local government and mandates for organised local government. And

 

lastly, it extends the powers of the Minister to make regulations relating to municipal staff matters.

 

 

It is important to mention that in terms of the participation process, hon Deputy Chairperson, on 16 February 2021, the Bill was presented to the select committee where after it was referred to the provincial legislatures for public hearing.

The select committee consulted all the nine provinces irrespective, and in the process of this consultation, the Department of Co-operative Governance and Traditional Affairs actively supported the provincial legislatures during the window period for public participation process. It is important to also mention that, the department supported the NCOP permanent delegates in presenting the Bill to eight of the nine provincial legislatures that it can gradually, and this was through the hybrid mode. In a parallel process, our committee published, the NCOP published the Bill calling for public comments. This process was replicated by the provincial legislatures and to engage state holders such as the SA Local Government Association, Salga, municipalities, members of the public, traditional and religious groups, around table of local government practitioners, legal practitioners as well as academia.

 

All provincial legislatures finalised their first negotiating mandates, which were due to the NCOP during May 2021. Due to delays to finalise the public hearings, some provincial legislatures requested the NCOP to extend for submission of the negotiating mandates and this was accordingly granted.

 

 

Hon Deputy Chairperson, it’s quite important to mention that all nine provincial legislatures support the Bill as a section 76(b) with recommendations we have provided. On submissions by the provincial legislatures and state holders were locked by the Department of Co-operative Governance and Traditional Affairs. This is quite important. In respect of the negotiating mandates on the Bill, the select committee received nine negotiating mandates in favour of the Bill with proposed amendment. The select committee on 24 August 2021 held the negotiating mandate meeting with permanent delegates representing their province positions on the Bill. The select committee received a briefing from the department on its responses to the negotiating mandate. The department responded to the proposed amendment by the provincial legislatures and thereafter the department submitted amendment to the Bill.

 

 

The select committee met on 31 August and adopted the proposed list of amendments and this was along with the relevant

 

documentations, which were forwarded to the provincial legislatures. With all set and done, hon Deputy Chairperson, the select committee received final mandates in support of the Bill.

 

 

The select committee met on 12 November 2021 to consider the final mandates and adopt its report. This select committee consider the amendment process with the department explaining the reasons for each amendment, and where we are we are satisfied that all the due processes were followed and observed. And it is therefore important to mention that, this report was unanimously adopted by the committee after it was also equally adopted by the provinces with no objections raised. With that in conclusion, hon Chair, the Select Committee on Co-operative Governance and Traditional Affairs, Water, Sanitation and Human Settlements, having considered the Local Government Municipal Systems Amendment Bill, referred to it on 4 December 2020 classified as a section 76(b) submit and amended Bill to this House, namely, the Local Government Municipal Systems Amendment Bill for adoption. Thank you very much. [Applause.]

 

 

Debate concluded.

 

Question put: That the Bill be adopted.

 

 

In favour: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, Western Cape.

 

 

Bill accordingly adopted in accordance with section 65 of the constitution.

 

 

CONSIDERATION OF REPORT OF JOINT STANDING COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS - 2019 REGISTER OF MEMBERS’ INTERESTS: LATE AND NON-DISCLOSURES. CONTRAVENTION OF THE CODE OF ETHICAL CONDUCT AND DISCLOSURE OF MEMBERS’ INTERESTS.

 

 

CONSIDERATION OF REPORT OF JOINT COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS - 2020 REGISTER OF MEMBERS’ INTERESTS: LATE AND NON-DISCLOSURES. CONTRAVENTION OF THE CODE OF ETHICAL CONDUCT AND DISCLOSURE OF MEMBERS’ INTERESTS.

 

 

Ms M L MOSHODI: Hon Deputy Chair, fellow South Africans, the Joint Standing Committee on Ethics and Members’ Interests on the 2019 Register of Members’ Interests: Late and Non- Disclosures. The Joint Committee on Ethics and Members’ Interests having considered the late and nondisclosures of

 

financial and other registrable interests in respect of the 2019 disclosure process, reports as follows.

 

 

The Code of Ethical Conduct and Disclosure of Members’ Interests prescribes that Members of Parliament must disclose their registrable interests within 60 days of the opening of Parliament - Item 9.2.2. The due date for the first disclosure of Members’ Interests was 13 September 2019.

 

 

Item 10.1.1.1 of the Code of Ethical Conduct and Disclosure of

 

Members’ Interests provides as follows:

 

 

A member breaches the Code when the Member contravenes or fails to comply with the requirements of the provisions for disclosing interests.

 

 

Seventeen Members of Parliament failed and/or neglected to submit their disclosure of financial and registrable interests by 13 September 2019. The Joint Committee convened on 8 November 2019, 11 March 2020, 9 November 2020 and 31 May 2021 to discuss the late and non-disclosures.

 

 

The following members were considered submitting their 2019 disclosures late: Hon N T Mkhatshwa; hon L F Shabalala; hon T

 

Mboweni; hon M D Mahlobo; hon M Ntuli; hon K B Manamela; hon M Gungubele; hon Z Majozi; hon N F Shivambu; hon T D Khalipha; hon M Nyhontso; hon C H Sibisi; hon T Apleni; hon I Ntsube; and hon S Patrien.

 

 

The following members were considered not disclosing their 2019 disclosures. Concerning the hon L G Mokoena, MP, the recommendations of the committee, on the basis that the member is no longer a Member of Parliament, the Joint Committee does not make a recommendation to the House in this regard.

 

 

On hon N G Tolashe, MP, it is recommended that Joint Committee considers the imposition of a penalty in terms of item

10.7.7.1 (i) and (ii) of the Code. Item 10.7.7.1 (i) and (ii) provide as follows: Be reprimanded in the House; or given a fine not exceeding the value of 30-days’ salary.

 

 

Recommendations to the committee: It is recommended that the Joint Committee fine the member a value equalling to 2-days’ salary for not initially submitting their disclosure forms for 2019; and that the member must be reprimanded in the House. I so table the report for 2019, hon Deputy Chair.

 

Allow me, hon Deputy Chair, also to present the 2020 Later and Non-Disclosure. The Joint Committee on Ethics and Members’ Interests on the 2020 Register of Members’ Interests: Late and Nondisclosures, having considered the late and nondisclosures of financial and other registrable interests in respect of the 2020 disclosure process, reports as follows:

 

 

Item 9.2.3 of the Code of Ethical Conduct and Disclosure of Members’ Interests prescribes that Members of Parliament must disclose their registrable interests annually at a time determined by the Joint Committee on Ethics and Members’ Interests. Item 9.2.2 also states that if a member has no registrable interests, a ‘nil’ return must be submitted. The due date for the 2020 disclosure of Members’ Interests was 6 November 2020 and thereafter extended to 20 November 2020.

 

 

Item 10.1.1.1 of the Code of Ethical Conduct and Disclosure of

 

Members’ Interests provides as follows:

 

 

A member breaches the Code when the member contravenes or fails to comply with the requirements of the provisions for disclosing interests.

 

Of the 454 Members who are required to submit their annual disclosures, eight members failed and/or neglected to submit their disclosures by the due date. The Joint Committee convened on 31 May 2021, 30 August 2021 and 22 November 2021 to discuss the late and nondisclosures.

 

 

Two members were identified as submitting their 2020 disclosures late. The members are as follows: Hon Vuyani Pambo; and hon Mncedisi Nontsele. The committee recommends to the House to impose a penalty in terms of item 10.7.7.1(i) of the Code, which provides as follows. The committee must recommend the imposition of one or more of the following penalties where a member breached clauses 10.1.1.1 of this Code: A reprimand in the House. The recommendation of the committee: It is recommended that the members be reprimanded in the House.

 

 

Six members were considered not disclosing their 2020 disclosures. The members are as follows: Hon Bertha Mabe; Ethel Nkosi; hon Itumeleng Ntsube; hon Moloko Tlou; hon Bufeze Yabo; and hon Mosebenzi Zwane.

 

The Joint Committee recommends to the House to impose a penalty in terms of item 10.7.7.1(i) and (ii) of the Code, which provides as follows:

 

 

The Committee must recommend the imposition of one or more of the following penalties where a Member breached clauses 10.1.1.1 of this Code:

 

 

(i) A reprimand in the House; or

 

(ii) a fine not exceeding the value of 30-days’ salary.

 

 

The recommendations of the committee: It is recommended that the members be reprimanded in the House fine the members a value equal to 2-days salary for not initially submitting the disclosure of interests’ form for 2020 and that the members be reprimanded in the House.

 

 

For hon Ntsube’s breach of the Code, the committee recommended the following. The Joint Committee recommends to the House to impose a penalty in terms of item 10.7.7.1(i) and (ii) of the Code, which provides as follows:

 

The Committee must recommend the imposition of one or more of the following penalties where a Member breached clauses 10.1.1.1 of this Code:

(i) A reprimand in the House; or

 

(ii) a fine not exceeding the value of 30-days’ salary.

 

 

It is recommended that the House fine the Member a value equal to 5-days’salary for not initially submitting the public disclosure form for 2020 and for being in breach of the Code for the second time. Also, that the Member be reprimanded in the House.

 

 

Sesotho:

 

Ha ke qetela, Modulasetulo: ...

 

 

English:

 

... Allow me to thank all members of this committee for availing themselves to do the work of this committee. I thank you very much hon members. Also, allow me to thank Adv Gordhan and the staff: Your work in this committee is well done! Thank you very much hon Chairperson.

 

 

Setswana:

 

Ke a leboga!

 

Afrikaans:

 

Dankie!

 

 

CONSIDERATION OF REPORT OF JOINT COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS 2019 REGISTER OF MEMBERS’ INTERESTS: LATE AND NONDISCLOSURES; CONTRAVENTION OF THE CODE OF ETHICAL CONDUCT AND DISCLOSURE OF MEMBERS’ INTERESTS

 

 

Debate concluded.

 

 

Question put: That the Report be agreed to.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly agreed to in accordance with section 65 of the Constitution.

 

 

The DEPUTY CHAIRPERSON OF THE NCOP: Hon delegates, the House has agreed to the recommendations made by the Joint Committee on ethics. The penalties will therefore be imposed. The relevant delegates will now be reprimanded in the House and in view of this, I now call on hon Apleni. Hon Apleni, can you rise? Hon Apleni, you are hereby reprimanded in the House for

 

breaching the Code of Ethical Conduct and Disclosure of Members’ Interest in that you submitted your 2019 disclosure of Members’ Interest form late. You are reprimanded. If it were my own words, it would be different, but the words are prescribed. You are reprimanded. You may sit. Thank you.

 

 

I will now call on hon Ntsube. Hon Ntsube, you may rise.

 

 

Afrikaans:

 

Jy is eintlik ’n gereelde misdadiger.

 

 

English:

 

Hon Ntsube, you are hereby reprimanded in the House for breaching the Code of Ethical Conduct and Disclosure of Members’ Interest in that you submitted your 2019 disclosure of Members’ Interest form late. I hope that you are properly reprimanded. I hope you have remorse. It is my own words that I am adding. Thank you, delegates.

 

 

CONSIDERATION OF REPORT OF JOINT COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS 2020 REGISTER OF MEMBERS’ INTERESTS: LATE AND NON-DISCLOSURES; CONTRAVENTION OF THE CODE OF ETHICAL CONDUCT AND DISCLOSURE OF MEMBERS’ INTERESTS

 

Question put: That the Report be agreed to.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly agreed to in accordance with section 65 of the Constitution.

 

 

The DEPUTY CHAIRPERSON OF THE NCOP: Hon delegates, the House has agreed to the recommendations made by the Joint Committee on Ethics. The penalties will therefore be imposed. In addition to the fines indicated in the report, the relevant delegates will now be reprimanded in the House and in view of this, I now call on the hon Nkosi. Hon Nkosi, where you are, can you open your video, so that we can see you? Hon Nkosi. Is she not in Cape Town? [Interjections.]

 

 

Afrikaans:

 

Nie een van die mense wat gepraat het, is agb Nkosi nie.

 

 

English:

 

Hon Nkosi! I saw earlier on that hon Nkosi was on the platform.

 

Ms N E NKOSI: Deputy Chair!

 

 

The DEPUTY CHAIRPERSON OF THE NCOP: Please, open your video.

 

 

Ms N E NKOSI: Deputy Chair, I have already opened my video. I am sorry, I have a network problem here.

 

 

The DEPUTY CHAIRPERSON OF THE NCOP: We understand that. Can you just sit still for a moment to get your reprimand? Hon Nkosi, we want to see your face on the video, please. I want people to see who is hon E Nkosi.

 

 

Ms N E NKOSI: Deputy Chair, it is me. I am here.

 

 

The DEPUTY CHAIRPERSON OF THE NCOP: Hon Nkosi, you are hereby reprimanded in the House for breaching the Code of Ethical Conduct and Disclosure of Members’ Interest in that you failed to submit your 2020 disclosure of Members’ Interest form on time. Hon Nkosi, can we see you again.

 

 

Afrikaans:

 

Laat ons sien of jy bloos.

 

 

English:

 

We understand that you have problems with your network but we hope that you have ... There you are. We don’t want to see a smile on your face.

 

 

Afrikaans:

 

Ons wil verleentheid sien. Jy moet bloos. Daar is hy.

 

 

English:

 

Thank you, hon Nkosi.

 

 

I now call on hon Ntsube. Hon Ntsube, young man, can you rise, please. Hon Ntsube, there is one thing that we do as mothers, we feel very sorry for young people, but young people must also respect our Rules. In terms of that, you are reprimanded in the House for breaching the Code of Ethical Conduct and Disclosure of Members’ Interest in that you failed to submit your 2020 disclosure of Members’ Interest form on time.

Personally, I don’t want to see you again standing for the same reprimand. I hope you will in future submit your disclosure on time.

 

 

Hon members, let me then now thank all of you that are present here, MECs, the Speakers of provinces, the Chief Whip, the Minister of Finance who was also present, as well as the

 

Deputy Chair of Committees of the Northern Cape Provincial Legislature, all special delegates and Salga representatives for availing themselves for the plenary. If we say special delegates, we include the Chairpersons of provincial financial committees that participated in the debates.

 

 

The Council adjourned at 13:29.