Chairperson, Ministers and Deputy Ministers, distinguished guests, MECs here present, executive mayors, mayors and councillors, traditional leaders, chairpersons of entities, distinguished guests, the SA Local Government Association, ladies and gentlemen, we are privileged to be afforded an opportunity to present an integrated Budget Vote for the Department of Co-operative Governance and Traditional Affairs, Cogta. This Budget Vote is particularly significant and historic in that it takes place in the context of the successful conclusion of the third democratic local government elections held on 18 May 2011.
For the first time, 10 055 council seats, which include 4 277 wards, were contested in 8 metropolitan councils, 44 districts and 226 local municipalities. The number of councillors from the 2011 election increased by 12,3% and 8,5% from the 2000 to the 2006 elections respectively.
The holding of these elections under free and fair conditions is indeed true testimony to our enduring and maturing democracy. The voter turnout of 57,54% was the highest ever since the 2000 elections and were peaceful. We have all done the country proud. Our appreciation goes to the Independent Electoral Commission, IEC, and all stakeholders in ensuring such successful elections.
The department welcomes the report prepared by the parliamentary Ad hoc Committee on Service Delivery. The report is consistent with and confirms the findings of the comprehensive assessment done by the department with regard to the challenges and weaknesses in our system of local government. We will be working closely with provinces in processing our response to the report.
The restructuring process of Cogta has been completed, with most of the posts in the top management structures of the Department of Co-operative Governance and the Department of Traditional Affairs being filled at 90% and 83% respectively. The restructuring exercise provided a unique opportunity to reorganise the departmental resources, align the programmes and recruit additional and new skills that are critical in the implementation of the departmental programmes.
In his state of the nation address on 10 February 2011, His Excellency President J G Zuma highlighted the tremendous progress that our country has made thus far in delivering basic services. He also warned that whilst many South Africans celebrated this delivery, there were many others who were still waiting. The stark reality is that the legacy of decades of apartheid underdevelopment and colonial oppression cannot be undone in only 17 years. In this regard, more resources have been made available to address the needs at local government level in order to accelerate service delivery.
Firstly, municipalities are currently receiving 8,7% of the revenue divided between the three spheres of government in 2011-12, which is projected to rise to 8,9% in 2012-13 and 2013-14 respectively. The national transfers to local government have increased substantially, and will amount to R70 billion in budgetary assistance and infrastructure grants in the 2011-12 year.
Secondly, the annual expenditure data from National Treasury, on aggregate, suggests that local government is not failing as dismally as perceptions suggest. For example, expenditure in this sphere has increased from R45,8 billion in 1997 to, most dramatically, R232 billion last year. Notwithstanding these improvements, there is still a need to increase both the capacity of municipalities to spend and the fiscal support for municipalities.
With regard to the Operation Clean Audit, the following municipalities received clean audit reports from the findings of the Auditor-General in the 2009-10 financial year, and the Auditor-General has commended the active leadership role of mayors and councillors in their oversight to improve governance and financial management systems: the Metsweding District Municipality in Gauteng, and the Ehlanzeni District Municipality, the Steve Tshwete Local Municipality and the Victor Khanye Local Municipality in Mpumalanga; the Frances Baard District Municipality in the Northern Cape, the Cape Town Municipality in the Western Cape, and the Fetakgomo Local Municipality in Limpopo.
Furthermore, for the first time all municipalities in KwaZulu-Natal submitted their annual financial statements on time. In total, there were 53 disclaimers against the 85 reported in the previous year.
Over the past financial year, Cogta concentrated on providing institutional support to municipalities to develop their own specific turnaround strategies. To date, 90% of municipalities have their own municipal turnaround strategies, which they have incorporated into their integrated development plans, the IDPs.
Cogta is working in partnership with the SA Local Government Assocation, Salga, to prepare for the Councillor Induction Programme for the 2011-12 financial year. This is aimed at ensuring that newly elected councillors are capacitated with a general understanding of their leadership role, legislation that guides local government, key municipal processes, developmental local government and service delivery.
In addition, Cogta will ensure that newly elected councillors are equipped to accelerate the implementation of the local government turnaround strategy so that they can hit the ground running.
Cogta launched the Clean Cities and Towns Pilot Programme in the Mbhashe Local Municipality in Elliotdale on 21 April 2011 and in the Ingquza Hill Local Municipality in Flagstaff and Lusikisiki on 13 May 2011 in the Eastern Cape. This campaign is designed to ensure that we create an enabling environment to attract investors to municipalities, have a healthy environment for communities and create jobs.
With regard to the Local Government: Municipal Systems Amendment Bill, this was finalised by both Houses of Parliament in April 2011. This Bill sends a clear signal that our municipalities must and will be more professional in the manner in which they do their business by ensuring, amongst other things, that competent and well-qualified officials are appointed to provide the best possible service to our people; the Bill regulates various matters of human resources management in a manner that provides uniformity and predictability; and deepens accountability by the senior municipal officials to the councils and, by the same token, places certain obligations on politically elected officials.
In his state of the nation address, the President again stressed that service delivery is of pivotal importance. We are happy to report that in this regard, demonstrable progress has been recorded in the provision of water, sanitation, electricity and refuse removal, as well as the infrastructure that goes with it. However, it is our considered view that we need to increase the provision and quality of services, with a specific focus on rural areas.
The municipal infrastructure grant, MIG, is the key instrument being used by municipalities to access infrastructure funding for their capital expenditure projects.
The department will transfer R11,4 billion of MIG to municipalities in this financial year. It is, however, important for the municipalities to maintain their infrastructure in order to improve the quality and reliability of services. In this regard, the department will be working closely with the Attorney-General, the Ministry in the Presidency and National Treasury to strengthen monitoring and evaluation in terms of capital expenditure for bulk infrastructure.
Furthermore, a special purpose vehicle will be implemented in order to accelerate support in the delivery of bulk infrastructure and the provision of the requisite skills to municipalities.
Regarding job creation, the creation of jobs as an important priority of government's fight against poverty is also finding meaningful expression in the programme of the Department of Co-operative Governance and Traditional Affairs. The Community Work Programme scaled up significantly in April 2010 to March 2011, with a total of 89 698 work opportunities created.
Traditional leadership institutions have played a critical role in creating employment and generating wealth. They have identified land suitable for industrial and agricultural purposes in rural areas, and pilot projects are already being rolled out in KwaZulu-Natal, Limpopo and the Eastern Cape.
In support of the Human Settlements outcome, the Department of Co- operative Governance and Traditional Affairs will be working closely with municipalities and traditional leaders to release the land for development. We will also provide institutional support to municipalities that have been granted housing accreditation status. The programme will be in the six metropolitans and in the Frances Baard and Pixley ka Seme District Municipalities that will be granted level 2 accreditation status for housing provision.
With regard to the ward committee model, in this financial year Cogta will give particular attention to strengthening the capacity of the wards. This will help to enhance meaningful public participation and strengthen democratic and developmental local governance.
Another key focal area for Cogta is the improvement of the financial and administrative capabilities of municipalities. One hundred and three municipal public accounts committees have been established to date. Provinces then developed action plans to address previous audit outcomes and to now monitor the implementation of their action plans. Furthermore, individual or shared internal audit units have been established in 263 municipalities, and individual or shared audit committees have also been established in 268 municipalities.
In our quest to strengthen co-ordination across the three spheres of government and to move beyond co-ordination towards better performance, service delivery and accountability, the department will be processing two critical policy documents: a Green Paper on Co-operative Governance and a Review of the White Paper on Local Government.
The following Bills and amendments to legislation will be introduced in Parliament in the 2011-12 financial year, with the intent of removing all the obstacles that hinder service delivery: the Local Government: Municipal Property Rates Amendment Bill; the National Traditional Affairs Bill; and the Monitoring, Support and Intervention Bill.
The strategic role of the new Department of Traditional Affairs is to ensure that the institution is transformed and integrated into a democratic governance system. It will also partner with the Khoisan leadership and communities.
The members of the Commission on Traditional Leadership Disputes and Claims assumed duty on 1 January 2011 and their term will be for a period not exceeding five years. The department is tasked with ensuring that the commission operates well and in close contact with provinces. The commission will be finalising over 100 claims and disputes during this financial year.
The national composite report will inform a number of the department's projects in the next Medium-Term Expenditure Framework, MTEF, including the sector-wide strategy. The Department of Traditional Affairs has commenced with the work to consolidate the Traditional Leadership and Governance Framework Act of 2003 and the National House of Traditional Leaders Act of 2009 into a single piece of legislation. This has resulted in the drafting of the National Traditional Affairs Bill, which will ensure an integrated approach in dealing with matters relating to traditional affairs. In addition to the consolidation of existing laws, the Bill seeks to provide for the recognition of Khoisan communities, their structures and leadership positions.
In conclusion, we can say that we will achieve a better life for all our people if national and provincial government work together to support local government in achieving service delivery outcomes. We recently visited Dipaleseng in Mpumalanga and observed that an integrated approach of government can indeed ensure effective delivery of services. We call upon members, the media and all stakeholders to visit that area in order to see for themselves. Most of the demands by the local community have been met, but more still needs to be done.
Lastly, local government has also a responsibility to work better with communities to ensure that all South Africans are active participants in the development of the areas where they live. We owe it to our children and future generations to make local government work. Local government is everybody's business. Let us all be part of it. I thank you, Chairperson. [Applause.]
Modulasetulo, maloko a hlomphehileng le baeti ba rona ba kgabane, re le amohetse Ntlong ena ya ketsamelao. [Chairperson, hon members and our distinguished guests, we welcome you to this House.]
This Budget Vote occurs after the successful performances of three peoples' teams: the three cups for Orlando Pirates ... [Laughter.] ... FC Barcelona's devastation of Manchester United ... [Laughter.] ... and, finally, but most importantly, the ANC's massive victory in the local government elections. [Applause.]
Chairperson, if you notice a bounce in our step as we walk down the corridor and in the street, take it that good things - great performances - must be celebrated. It is in order to do that. Of course, both winners and losers can legitimately say that we could have done even better, but, hey, three cheers for the champions. We in the ANC are proud but humble, because we built on the foundation of success laid by giants, some of whom are no longer with us. Madiba's vote said to all of us that voting is an important civic duty to be performed every time. We must also congratulate government on meeting the constitutional deadline to hold the elections on time.
These congratulations also go to the exemplary leadership role you played, Minister, in co-ordinating the interministerial committee that made the elections a great success. The demarcation board itself deserves congratulations too on completing its task on time.
We have to say "take five" to the IEC for running a successful civic campaign to urge voters to turn up and vote. They did so in their numbers. To the SABC, working together with the Council for Scientific and Industrial Research, CSIR, "take five" too for excellent and informative coverage of the elections. "Take five" too, incoming councillors, members of mayoral committees, executive committee members and Chief Whips.
There are key tasks that are emerging. What are these key tasks confronting all of us now that the elections are over? It goes without saying that implementation of the manifesto and the message we sent to the voters are the key things for implementation. Having listened further to the people during the election campaigns, we must now act with even more urgency to lift the majority of our people out of ongoing unacceptable levels of poverty, unemployment and underdevelopment.
We must pursue jobs, education, health, rural development and a crime and corruption-free society with added zeal to transform the quality of life of the majority of our people. Having emerged from those elections, it is clear why the need for deepening the democratic involvement of people in their own development is urgent. Doing so promises to accelerate communication, responsiveness and acting on the desires of the people in whose name we do the work we do here.
Comrade Minister, we hope the programme the Ministry and Salga have briefed us about on the transition will be acted upon with speed, tempered by the necessary democratic sensitivity to the incoming councillors' own views, as well as their peculiar needs. We urge the Ministry and the department, including your provincial counterparts, to work with ex-councillors who are willing to support this work, and that new councillors themselves also be open and willing to be assisted by those who were there before in order to help them hit the ground running even faster.
We urge the public and communities to allow the new incoming teams to absorb their mandate, roles and relationships they will need to do their work more effectively. These incoming teams must cultivate proper, respectful relationships with the professionals employed in the councils so that their manifestos see the light of day even faster.
Exercising sensitive political oversight, without micromanaging these professionals, is a key approach from what we have come to understand in terms of these issues not being handled properly before. These professionals themselves need to be political without advancing their party- political agendas. But they must appreciate the dynamics of stakeholder engagement that leads to all-round satisfaction with the quality of their work and, thus, earns them the respect of their principals. We expect nothing but co-operation between the councillors, professionals and workers and their trade unions in the interests of transforming the workplace and service delivery.
The role of the department you lead, Minister and Deputy Minister, is crucial in supporting councils to achieve the goals we outlined above. We have come to the conclusion that the turnaround strategy is clearly one of the key weapons you will need to do this work. The turnaround strategy and the Local Government: Municipal Systems Amendment Bill are key instruments, which, once the issues with Samwu, the SA Municipal Workers Union, are settled, will have a major impact on local government practises in the country. The political parties themselves must do their bit urgently to help stakeholders appreciate the value of this proposed law.
The quantum of resources, Minister, as contained in the budget, will always be considered inadequate for a variety of reasons, principal amongst these being the deep level of poverty and the challenges that poses. So, it is the business of all of government to take measures and take risks that will improve the quantum of resources, even as we tackle in practice the challenge of integrity-driven governance - in other words, using resources appropriately for what they are meant to be used for and in a manner that satisfies institutions that are responsible for managing them.
Although we have had political differences and other differences - we still do - with former Member of Parliament Gavin Woods, we agree with him, however, when he calls for what he calls a defensive and offensive strategy to deal with corruption, as articulated in Delivery, the magazine for local government. By "defensive" he means closing down opportunities for corrupt activities, strengthening understanding and compliance with existing measures and systems as found in the Public Finance Management Act and the Local Government: Municipal Finance Management Act. By "offensive" measures he refers to increasing the risks of being corrupt, of speeding up investigations and acting against those who are found guilty.
This stance will no doubt speed up our achievement of clean audits and governance, as demanded by the people who have just returned us in numbers to run the councils in our country. The proper management of finances is crucial in its own right, but especially so as to make such finances reach the furthest to reverse backlogs in services to communities, and to maintain those already in place and in a good condition.
Mr Minister and Chairperson, we would like to argue once more that we need to attend to the matter of statistics that inform our planning nationally and locally, so that these are as up to date as possible. We recommend that Cogta, Statistics SA, Treasury, and the Financial and Fiscal Commission consider this matter urgently. And we suggest including the Development Bank of Southern Africa as per the recommendation of the budget review recommendation report, by the way. We are just restating it. We believe that creating capacity in each metro and district is a crucial step in that direction.
Unattended, councils will continue to suffer the consequences of inadequate funding which strains their relationships with communities. Linked to this matter is attending to the missing urban policy that was meant to flow from the consideration of the urban renewal pilot programme. That programme, which you, Mr Minister, may have integrated into other programmes, was meant as a pilot programme to provide lessons and generate ideas on how to run cities, and so on.
It is becoming increasingly urgent to deal with the now-recognised interconnectedness of the urban and the rural. This matter is made more urgent owing to the key roles cities play in the socioeconomic life of our country. The populations in cities and towns continue to grow in size and social complexity as a result of rural and international migration, making their governance a challenge as there are plenty of opportunities and risks that require national and provincial support.
Sir, we would like to compliment your department on working with the Departments of Human Settlements and Transport to give cities powers that will improve their ability to plan more effectively to undo the apartheid spatial fragmentation that still bedevils our cities and towns.
We would like to express some disappointment though, Mr Minister, at disaster management having fallen so low on the agenda of government; this, despite the message that climate change is giving us in practice everywhere in our country and elsewhere in the world.
A one-time mayor of a little town in Japan was attacked for what people thought, at the time, was a waste of money on a huge wall he had built around the town. But he was thanked profusely recently because, owing to that wall, the town was one of the least affected by the tsunami that caused a near nuclear disaster recently in Japan. In other words, his prescience and vision were the key factors. The question we pose is: How many of our cities have studied their vulnerabilities - as the Disaster Management Act requires - and have taken preventative measures? What support has the national government given to implement this 2003 piece of legislation?
The R850 billion infrastructure investment now being laid out in the country is at risk, sir, if we do not prioritise disaster management as part of the integrated development plans. The resources we do not spend now to do this work may treble even more in future in ways that are going to be clearly unsustainable. Worse still, we can't afford to lose lives when these disasters occur, such as we already have.
Councils are key in agitating and taking proactive steps to mobilise communities to take preventative measures. We appreciate that Salga has commissioned research into this matter. We hope its findings will be supported by the Ministry and the department in that they prioritise disaster management in councils and in government.
In fact, this action of commissioning research just illustrates the point we made earlier about the necessity of up-to-date information. A lack of up- to-date information prevents the making of the correct decisions, not only in terms of quantum, but also in terms of the impact of decisions that are made that are not adequate for the challenge posed by the problems we have already identified.
We would like to stress here that the function and work of traditional leaders is a key programme that requires ongoing support, firstly, to mediate the relationships traditional leaders have with communities in the areas of their jurisdiction; and, secondly, with a view to insisting and ensuring that the manner in which we conduct and carry out development practices in those areas - which happen to be rural - is consultative.
But that, too, Minister, links to one crucial point that we have made already. We do not understand why we should be signing off integrated development plans that do not reflect support for rural areas in the jurisdiction of those municipalities, in a way that is reasonable. We really appeal to all players in the local government sphere in that our work with the Department of Rural Development and Land Affairs is crucial.
There is no way that we will be able to manage this programme unless we work in an integrated manner as the integrated development plans - as their name implies - entail. This administration has prioritised rural development because we would like to undo past neglect in these areas. The most vulnerable ones must be the priority of all of government.
The most effective way to do this, we believe, is for the integrated development plans - even as the planning is being handled by the emerging Planning Commission - to remain the key planning instrument of all of government. In a sense, we really feel that this is going to make a huge difference.
Your department, sir, will have the biggest impact on the work you have already started in co-ordinating the work you do with Human Settlements, with Transport and with Water and Environmental Affairs. The challenges that are emerging out of working across those departments are huge. They can't be handled by anyone of this department in any effective way, never mind in their relationship with municipalities. Therefore, we extend congratulations on the efforts that are headed in this direction. We would like to urge that these moves be done with greater speed. Thank you very much. [Applause.]
MACROBUTTON HtmlResAnchor
Hon Chair, the debate on this budget gives us the chance to ask the question: What has the department done within the limits of its constitutional powers to ensure good governance in the country's municipalities and will this budget support those efforts?
I have previously drawn the attention of the House to the perilous state of local government. It would not be going too far to say that the collapse and failure of local government in our country puts in peril the possibility of government delivering a decent life for all.
This is not something to be taken lightly or to be glossed over, as it has been for election purposes. We must be clear that this is not a matter of opinion, because in many parts of the country municipal governance has been so bad that service delivery and infrastructure roll- out are actually going backward. Water and sewerage treatment plants, roads and electrical infrastructure have been without maintenance for so long that they are breaking down irretrievably. Not only are they unable to cope with the roll-out of services to people who have lived for too long without, but they're increasingly unable even to deliver the capacity they were designed for because of that lack of maintenance.
Municipal government is running through its capital and faces the prospect of falling further and further behind, with service delivery becoming nothing more than a cruel and empty promise.
So what has the department done to tackle the problems bedevilling local government? It has pinned everything on the local government turnaround strategy. The question then is: Is that working? To answer that, let's look at Tswaing Municipality in the North West. Much of that municipality is dysfunctional and has been for some time. It was placed under administration about a year ago.
A highly paid administrator was sent in and then nothing happened. Residents' representatives meeting the administrator reported that he had no clue where to begin. He began without even any documentary records of what had gone on before. There is speculation that documents had been destroyed so as to provide no evidence of any wrongdoing by anybody in the council.
One by-product of administration was that no council meetings were held and thus an important oversight mechanism was removed. The administrator was forced to try to operate in a morass of factional political infighting. Councillors from a different faction to the administrator decided he was targeting them and they did everything they could to ensure that he was not successful.
So, despite the presence of the administrator, the investigations by the Special Investigating Unit, the Gobodo Forensic Audit team, the intervention of the department and of the provincial Premier, after a year the municipality cannot point to any substantive record of services having improved.
There appears to be no control over and no backup for the administrator and nothing to impose political discipline to stop factionalised councillors from interfering in the rescue mission. The department has spent serious money on this rescue mission, but appears to have achieved little or nothing.
I've talked about Tswaing; the same could be said for Madibeng, where its residents have water because DA councillors stood in the mud and fixed the water pump themselves, or Kou-Kamma which still cannot deliver water to some of its residents and refuses to take action against staff who are drunk on duty.
Administration has not worked anywhere in the North West. I suspect it is not working in many other failed municipalities. It seems clear then that the problems that the department is trying to solve do not include some of the most important problems.
So what are those problems? For a start, a lack of leadership and control which goes right to the top. Why do we have a politically crippled Minister still in that position? He is medically unable to perform his duties. Perhaps even worse, some of the allegations of wild overspending have, in part, been confirmed by the Minister himself and other allegations have yet to be investigated.
The impression that is left is that the man who is supposed to be ending financial recklessness is himself up to his neck in it. That cannot go anywhere at all towards restoring discipline and financial prudence.
Perhaps there's been no action against the Minister for reasons of political loyalty, but that does show gross disloyalty to vows that government officials have made to serve the people of South Africa.
Why do we have a caretaker Minister in a position as important as this? The Acting Minister has other work and it is not fair to him or the public to expect him to devote the kind of attention that this department needs to sort out the mess.
Why has the Deputy Minister not been promoted? He, at least, is somebody who knows his subject, having clearly devoted himself to the task at hand. But whatever his efforts ... [Interjections.] [Laughter.] ... I knew you'd be embarrassed. But whatever his efforts, he cannot succeed unless he has the power.
Is his lack of promotion, I wonder, to do with the fact that he doesn't bring a sufficiently important political constituency with him? [Interjections.] Is that what overrides merit in this case? That surely would never have been the case in the ANC of Nelson Mandela. How sad that it seems to be the case in the ANC of Jacob Zuma. While on the subject of lack of top-level control, I'd like to pose what will, unfortunately, likely be a rhetorical question. Why are municipalities being allowed to buy expensive billing software from Belgium when it is clearly unusable? The reason it is unusable is that it is written not in English, but rather in Flemish.
We know of two municipalities that have purchased this software, apparently with top-level approval, and a third may or may not have bought it - that are currently stonewalling answering that question. In those two towns that have bought it, it is still lying unused on the shelf. Think how ridiculous this is. Imagine if the situation was reversed and towns in Belgium were buying software which was only written in Zulu - not a likely contingency in Belgium, and it shouldn't happen here. But, once again, there appears to be no control.
And I can predict one response from the government. I'm sure somebody will point to the rather unimpressive victory in the local government elections in the past and say that the electorate doesn't believe that the picture is as bad as the one I'm painting; or do not for a moment think that the achievements of the ruling party were any endorsement of its performance as far as service delivery is concerned. Rather, the ANC's performance in this local election was a result of historical loyalty and a campaign of such grotesque racism as we have not seen since the demise of the last regime. [Applause.] It did the ANC no credit and the country no favours.
But there's one thing the election has done. It has given this government an opportunity to start with something of a clean slate. You can start afresh, make some profound changes in the way you operate, and the cause of good municipal governance may yet be won.
And here's what you can do differently: Stop cadre deployment. You do not have the talent or the skills within the ruling party to sort out the mess. That South Africa has the talent and the skills, I have no doubt. But while officials are deployed on the basis of loyalty to whatever faction of the ruling party happens to be on top, there will never be enough qualified people to fix the problems.
Secondly, you need to hold people accountable. Too many of the idle, undisciplined, incompetent and corrupt are protected because they have friends in the ANC who have power. You need to rule on the basis of principle, not cronyism. That principle is called the rule of law. Anybody who has not encountered it will find it in our Constitution.
Thirdly, start playing open cards with South Africans. It is massively difficult to get information on local government in ANC-run municipalities. Information is withheld and hidden to the point at which even if government is clean, it seems like it is not.
People would trust local government if they could see what it was doing. Trying to hide behind obfuscation and, even worse, trying to bring in a new law to make information secret will only make things worse. Some may think they can hide failure with this law. All you will do is guarantee further failure.
Fourthly, break the chains that bind the ruling party to the unions. The SA Municipal Workers' Union, Samwu's, refusal to accept the Local Government: Municipal Systems Amendment Act, which is a step in the right direction, shows exactly where the problem is. The unions of the Congress of SA Trade Unions, Cosatu, are heavily embedded in the system as it is and are unashamed in using their ability to paralyse government to further embed their members in government departments. That means the best people for the job will never be appointed and nobody will ever be held accountable. This government has to choose between Samwu and success, because it can't have both.
This budget shows at least an awareness of what is wrong. There is increased spending on infrastructure - the special purpose vehicle, SPV, seems like it might be a good idea. We have to invest in infrastructure and maintenance. But that infrastructure spending should be carefully controlled so that we get value for our money, and this is where I disagree with you, Minister, spending doesn't necessarily mean delivery. Let us make sure that contracts are not given out to enrich friends.
Also on this budget there is more spending on governance and control. Good ideas and very necessary, but we question whether the increased spending will merely create more posts and oversight structures which have no effect. Without addressing the fundamental problems, I fear I will be standing here next year saying the same thing. Please prove me wrong! [Time expired.] [Applause.]
Chairperson, I apologise for Mr Botha who has, unfortunately, contracted a cold and had to excuse himself from this debate today. First of all, Minister, Deputy Minister and all colleagues present here today, with the local government elections behind us, all participants and, in particular, the Independent Electoral Commission, IEC, need to be thanked and congratulated on delivering another successful election.
With a voter turnout of 57,6%, as compared to 48,4% in 2006, South Africans sent a clear message of their high expectations for local government service delivery. The enormous responsibility to meet those expectations now rests with the parties and their councillors who will be controlling those municipalities.
Two weeks ago, Cope had only a handful of councillors at local government level. Notwithstanding predictions of the demise of Cope, the party and its members rose to the occasion and, despite a number of serious challenges, overcame logistical and material obstacles to gain 261 seats in councils across the country. Cope is one of only three parties with definitive national representation in all provinces. Our first Cope mayor, Mr Jan Julies, was elected to the Karoo Hoogland local council today, a huge challenge posed because they must take over an ANC- controlled municipality to deliver effective services to the people. And, incidentally, the staff expenditure in this council runs at 51% of the total municipal budget, yet lack of skills and commitment to service delivery result in very serious hardships for the communities in that area. That probably explains why there is now a change of government.
A year ago, in this debate, the Minister assured the House that we should "expect dramatic announcements this year in terms of what is going to happen". Yet since then the Minister has remained silent and the country is waiting. But it is not only the Minister who is silent; the President is also silent on the Minister. No steps have so far been announced to repudiate the Minister who has been accused of abusing public funds; this, in a portfolio where he should lead by example, particularly because he has to oversee effective clean local government service delivery. The sooner this indiscretion is repudiated the better, for both the Minister and the country.
Let me proceed to the next problem that we face in local government. The employment of people on the basis of their party affiliation is wrong and it has undermined the functioning of municipalities. This is one of the very serious reasons why service delivery protests have become the order of the day. The Local Government: Municipal Systems Bill, which was approved by this House and the National Council of Provinces, was not signed into law because the President could not do so as a result of his party's alliance partner that was not willing to make it law.
Cadre deployment has crippled local government, as articulated by Sipho Pityana who said, and I quote:
The ANC has lost the capacity it had, as a liberation movement, to develop its cadres, through political education programmes and other means, to assume strategic roles in the organisation, in government and in society.
Poor planning, inadequate maintenance and indifferent management result in poor service delivery. These issues cannot be addressed if municipalities fail to spend the budgets allocated to them for infrastructure development. Of the R24,4 billion allocated by National Treasury for municipal infrastructure development, billions were returned unspent, owing to failure to plan and execute projects effectively.
Minister, we are already suffering from huge infrastructure backlogs, yet municipalities fail time and again to spend their allocated monies. This is not only because of corruption, but also owing to the failure to know how to govern effectively, and as a result of cadre deployment.
The failure to understand and apply the Local Government: Municipal Finance Management Act is another matter of serious concern. How can we succeed in delivering to the poor, the vulnerable and the marginalised if we cannot grasp the basic principles of responsible public resource management?
Skills shortages in local government are a ticking time bomb. In 2010, there were fewer than three civil engineers per 100 000 of the population employed by local government. The Local Government Budgets and Expenditure Review of 2003 to 2009 showed that 28% of municipal employees were appointed to posts that were not reflected in the municipality's organisational structure.
Massive urbanisation in South Africa impacts negatively on both rural and urban municipalities. Rural municipalities see growing numbers of economically active young people moving out in search of employment opportunities and a better life.
On the other hand, urban municipalities are faced with an ever-increasing population, resulting in enormous stress on municipal budgets and a lack of capacity to deliver housing, water, electricity and health services. This is further complicated by unfunded mandates from national and provincial governments to local government.
In terms of housing and the many despicably corrupt contractors who line their pockets while people sleep under bridges, it should be noted that this should be rooted out and prosecutions should follow, without mercy, together with prosecutions of their collaborators in government. These contractors should be blacklisted to ensure that they will never ever be allowed to get back into the system.
Cope calls for an effective system of local government, liberated from the scourge of cadre deployment and inadequate skills. We call for spatial reintegration, so that all South Africans have access to basic human rights and good service delivery. We call for corruption-free service delivery to all communities and new innovative economic opportunities that would benefit all members of the communities. Local government cannot be allowed to deteriorate any further. Thank you. [Time expired.] [Applause.]
Chairperson, hon Minister, Deputy Minister and colleagues, before I am told that I am not a member of this committee, yes indeed ... [Laughter.] Indeed, I am not a member of this committee, but the views that I will express this afternoon are documented by my colleague Mr Peter Smith, who serves on this particular committee. I will present his and the IFP's position in this regard. [Interjections.]
Chairperson, protection!
When our NCOP colleague Sicelo Shiceka was made Minister, the IFP not only wished him well, but genuinely had high hopes that here at last was someone who was genuinely passionate about local government and who could and possibly would make a difference, seemingly ably assisted by former local government portfolio chair Yunus Carrim. We thought here, potentially at least, was the ANC's A Team, that would go on and sort out the rot. Well, so much for expectations, Chairperson.
The self-styled choirmaster is singing no more. Certainly, he started the work by making the right noises, but after a while, it became increasingly clear that the task was simply too great for him. Sweet music was promised, but all we got was a cacophony of unpleasant noise. With inappropriate personal behaviour dogging his Ministry, the Minister's term of office has not been covered in glory.
There were some good initiatives to improve the rot but, ultimately, I think he and the ANC have consistently underestimated the enormity of the challenges they face in local government and have consistently overestimated their faith in the system, as well as in their ability to intervene and turn things around.
The reality is usually a lot worse than the ANC would have us believe. When Parliament established their task team last year to see for itself what was going on, Peter Smith was part of the team and he said that we saw the extent of the problem and how deep-seated and intractable it was. No wonder survey after survey shows that faith in local government is at rock bottom, compared to faith in provinces and in this national government.
I think the ANC is besotted with the real problem in that it doesn't want to have to acknowledge the fact that it is failing the people. Its belief in itself as the shining beacon of hope to the downtrodden, and as the only force for good in the universe, means that it won't really look reality in the face.
What is reality? To quote but a few instances of where it has gone wrong over the past decade and more, government has failed in its duty to adequately monitor local government; government has failed in its duty to provide adequate support to local government; and government has failed to provide a funding model that matches the delivery challenges of local government.
And, to this extent, my own comment, hon Minister, is that now I see that government is looking at a funding model for rural municipalities. This is about time as many rural municipalities fail to carry out the duties of service delivery, because there is just no rates base for them whatsoever and they have to rely on national and provincial government for funding. This is something that needs to be addressed very seriously. I am glad that, at last, there is probably going to be a position paper that will deal with this kind of issue. We welcome this initiative.
Frankly, if you go to certain parts of the country, it is evident that there is no idea of what local government is doing. Incompetence, corruption, mismanagement, waste, nepotism, greed - these and other sad adjectives describe the reality of the Msunduzi, eThekwini and many other municipalities.
Of course, sitting here in this House today, most members of the ANC, as they are doing now, will deny this. But we have to face the reality of the situation that all is not well in the state of Denmark and something needs to be done to correct it.
While it is fascinating to see how long it will take government to recognise the reality, in this House ... [Interjections.] Your project, your project - LFP. [Laughter.] In this House, year after year, the IFP has pointed to a number of critical challenges, including the need to review the funding model and the need to beef up monitoring and support. Year after year this is rejected by some members of this House. Yet, we now have the Deputy Minister espousing precisely these issues as key immediate challenges to be addressed, and we welcome that, hon Deputy Minister. Did we just realise this yesterday, or is it something that we have known over the years? [Time expired.]
Chairperson, Minister, comrades and friends, there is plenty of talk, of course, about the need to change the current local government model within Co-operative Governance and Traditional Affairs, Cogta, other organs of state, the media and the public. This has intensified with the local government elections. And so it should; so it should.
Most of us agree that there should be changes to the model. What we may disagree about are what exactly these changes should be and at what pace they should be effected? What we may also disagree about is the extent to which, if at all, the Constitution should be changed. But if any new model decided on consensually is to work, a fundamental aspect would have to be a new local government financial system.
It is on this and other financial issues that I'll focus. At the outset, though, we need to be clear. Of course, municipal councillors and officials must take their fair share of blame for the inadequacies of local government, but so too must provincial governments and national government. We have not assisted local government effectively.
Moreover, some of the key issues that municipalities have to respond to are more structural in nature and far more the responsibility of national government. These would include the slowdown in the economy, high unemployment, population changes, in-migration to urban municipalities, the high number of indigent residents, increases in the cost of bulk services and aspects of climate change that the chairperson referred to. Municipalities, it seems to us, bear too much of a burden for what are mainly the challenges of national government.
We are not a federal state; we're a unitary state with some federal features. Fundamentally, we forged our own unique co-operative governance system in which there are three interrelated and interdependent, if distinct, spheres. Given the structural challenges confronted by the country as a whole and the nature of our three-tier government system, ultimately the inadequacies of local government are a reflection of the failures of the co-operative governance system as a whole.
All three spheres of government have to work far more effectively together to ensure that local government significantly improves service delivery and development. Part of this entails - it seems to us - shaping a new local government financial system in which national government assists local government with both more funds and with developing the capacity to more effectively spend those funds.
So, what are some of the challenges of the current local government financial system? Before I begin to deal with this, may I take an opportunity, on behalf of the Minister and myself, to welcome to this debate various important statutory organisations that fall within our portfolio. We have the chairperson and other representatives of the national house. We have Mr Mahlangu, the Chairperson of the Municipal Demarcation Board, and his team and others. Most especially, we welcome the SA Local Government Association and, in particular, the outgoing chairperson and deputy chair who are here, Mr Masondo and Mr Mlaba. We congratulate them on the very good work they have done for the SA Local Government Association. [Applause.]
I should point out to them that this prohibition on serving more than two terms has less to do with me than the chairperson of the committee at the moment, who was part of the White Paper process. I was just there implementing the model that they thought out.
A key premise, I must add, of the current financial model is actually wrong. Mr Masondo must be saying, "Why now; now that we're going out, you are raising these issues?" We have. But you'll notice the majority party this very weekend - we are very pleased to see. It may be coincidental that the Acting Minister is a very important member of the national executive committee. He has been saying many of the things that this portfolio committee has been raising when I chaired it and what the current chair has been raising.
But a key problem is the presumption that municipalities can raise 95% of their own revenue. This was the case before 1994 when municipalities had much smaller boundaries, which mostly excluded the African majority and had limited service delivery roles. I hope the Minister of Finance is listening somewhere. This cannot apply to the new municipalities with their larger boundaries, significantly larger number of residents and expanded developmental role.
Clearly, local government needs to be allocated more funds from the national Budget. But this, in itself, would obviously not solve the problems. Local government will have to be assisted - notice, Mrs Kilian - with capacity to spend its funds more productively and effectively. Many municipalities don't have sufficiently qualified people, we all know, to manage their funds effectively. Poorer municipalities, of course, are unable to pay for the technical skills that they need.
We accept that in the 2009-10 financial year, municipalities were unable to spend 17,1% of their capital expenditure. We concede, too, in our local government state of our municipalities report that some municipalities of course also mismanage their funds, using them unproductively or for purposes not suited to service delivery and development goals.
In addition, we accept that municipalities also need to raise more of the revenue due to them, especially from those who can afford to pay. By December 2010 municipal debt had reached R62,3 billion. Instructively, DA - may I point out to Mr Lorimer - businesses owe R3,1 billion: your constituency to municipalities. [Interjections.]
National and provincial departments are our constituencies. We are taking this to the Professional Cost Consultants, PCC, to actually ensure that government departments pay what they, in fact, owe. Some municipalities, especially in the rural areas, are technically unviable. They do not have a minimum economic, financial or revenue base. The majority of the people living in these municipalities are indigent. These municipalities depend substantially on intergovernmental transfers to survive.
Then there are the unfunded mandates. Municipalities fulfil provincial functions like libraries, aspects of health and social services, and homes for the elderly, the disabled and abused women. Municipalities get no or little money for this from the provinces. District municipalities, of course, are seriously hampered by the withdrawal of the regional services levy from businesses, which has not yet been adequately replaced.
But despite its huge responsibilities, local government at present gets only 8,7% of national revenue. While this represents a significant increase from the 4,7% of the budget local government received in 2006, it is still by no means enough. There are inadequacies in the formula used to decide the equitable share allocation to local government as well as how this share is distributed amongst municipalities. So there are these and other challenges. What then do we do?
The first most fundamental aspect is to acknowledge that even if municipalities, Mrs Kilian, were to raise all the funds due to them and effectively spend all their money, they would still not be able to properly fulfil their expanded responsibilities. The answer is not to constrict national allocations to local government, Minister Gordhan, but to allocate adequate funding and capacity-building so that funds are used more productively as part of the extra budget that's allocated. A part of that should be allocated to programmes to build the capacity of municipalities to spend more effectively.
These extra funds can be allocated incrementally and at different times to different municipalities as their capacities develop. The funding approach would also be more consistent with what is emerging within Cogta in our Output 1 of Outcome 9: a more differentiated model.
There needs to be an expeditious, quick and significant overhaul of the current intergovernmental fiscal system, including the formula for the equitable share: the allocation of money from the national Budget to each sphere of government. There also needs to be a review of the formula used to distribute the equitable share. The formula needs to take far more directly into account the specific spatial development plans, extent of indigent residents, capacity to raise revenue and cost of providing services of each municipality.
Obviously, we have acknowledged that there are certain unviable municipalities. Cogta is working with the provincial cogtas. Already, at this stage, the MECs have identified them. In the Eastern Cape there are eight, Mpumalanga six, in the Northern Cape 13, and in KwaZulu-Natal 14 - municipalities that may be considered as unviable. As Cogta we are working on a common set of criteria to decide what constitutes "unviability". Once the process has been sufficiently advanced, we hope to take these proposals to the independent Municipal Demarcation Board.
It may well be that we need different approaches for different municipalities. Some can be settled with financial and capacity support; others may have to be incorporated into adjoining municipalities. But that won't solve the problem. We will have to give capacity, resources and so on for the absorbing municipalities to manage to function more effectively.
The financial and other capacity-building programmes of municipalities need to be intensified. Cogta is working with National Treasury, the Auditor-General's office, the SA Local Government Association and other institutions to ensure this. The different aspects include co-operation with National Treasury and the University of the Witwatersrand to provide a certificate programme in managing development for municipal finance. Another aspect is co-operation with the SA Institute of Chartered Accountants on the local government accounting certificate targeted at municipal officials below accountants, such as debtors' control clerks, tender staff, cashiers, bank reconciliation administrators and others. Thirdly, an advanced certificate at National Qualification Framework Level 4 is being piloted for learners who have already completed the certificate. Currently, there are 110 learners in this regard.
Of course the Local Government: Municipal Systems Bill, which seeks to professionalise the administration of municipalities, including providing for minimum qualifications for senior managers, will also assist in this regard. So too will the role of the private sector assist through the "Business Adopt-a-Municipality" campaign and in other ways.
As part of the local government turnaround strategy, Cogta is in the process of developing a revenue enhancement programme to support municipalities to improve revenue collection. The revenue enhancement programme seeks, amongst other things, to ensure for example, firstly, that municipalities have credit control and debt collection policies that have been through a public consultation process; secondly, promote efficient and effective customer relations management; thirdly, support municipalities to develop billing systems with accurate property data and customer information, better metering infrastructure and more effective billing and financial information systems; fourthly, ensure that municipalities improve customer-care management by responding timeously to queries; fifthly, provide guidance to assist municipalities to write off irrecoverable debt; and, sixthly, implement a code of conduct to ensure that officials and councillors are not in arrears of municipal bills.
As government, as I said, we are taking to the PCC and through Cabinet a programme to ensure that more of the departments that owe municipalities pay up.
On improving audits, Operation Clean Audit, as the Minister has said, has led to 103 municipalities now having established municipal public accounts committees. There has certainly been progress. There isn't time for me to cover this. I know, Chairperson, that members are extremely interested, and I'll put it on the website and they can go through over every word that the Minister and I have offered. So I will skip that part.
We are seeking to strengthen the municipal public accounts committees; strengthen the capacity of internal audits and audit committees; implement municipal audit remedial action plans to address audit findings; and recruit and retain critical skills. Skills are yet another issue.
On the special purpose vehicle, the department is in the final stages of completing the process. We have been engaging with the Development Bank of Southern Africa, DBSA, and National Treasury. We as Cogta will take over the funding that applies to the technical infrastructure, but the funding that applies to financial management will remain with National Treasury.
Part of the special purpose vehicle, SPV, seeks to address many of the issues - the extremely negative points that Mr Lorimer made. That's why we have the Local Government Turnaround Strategy, the LGTAS, which you committed yourself to, Mr Lorimer. But the SPV will address Mrs Kilian's, Mr Narend Singh's and other people's problems.
What are we seeking to do? We are seeking to support comprehensive infrastructure planning at municipal level and so on. You can find that there.
Finally, you cannot improve the financial situation or the management capacity of municipalities without accelerating and consolidating the Local Government Turnaround Strategy.
I want to finally conclude by saying: Mr Lorimer, you are so wrong about me. I represent, as the Communist Party, the vanguard of the proletariat internationally. [Applause.] The fact that I speak English as my first language does not qualify me to be a Minister. My chances, if there were any, are now completely dashed, Mr Narend Singh, by especially you because you are not in a party that anyone will take seriously. As a vanguard party, we are even stronger than you, with more than 121 000 members. Ask the Chairperson here.
But, let me say, friends, whatever our views, we have just emerged from the most remarkable elections in this country since 1994. The 57,54% poll is the highest for local government elections in very difficult circumstances since 2005. It goes against the universal trend, which we should all, including Cope that is collapsing, acknowledge. [Laughter.] But if people were enthusiastic, comrades and friends, they are even more determined that their conditions must improve.
We are all under pressure, more than ever before. We simply have to work more actively with communities to significantly accelerate service delivery and development. These elections have given us all new impetus, whichever party we come from. So let us ... Thank you. [Time expired.] [Laughter.]
Chairperson, hon members, distinguished guests, local government in South Africa has contributed to the achievement of a number of significant social and economic development advances.
Since the ushering in of the new democratic municipal dispensation in December 2000, the majority of our people have increased access to a wide range of basic services. Since 1994, the ANC-led government has made access to basic services and infrastructure development its key priorities.
South Africa has once again achieved international recognition for meeting budget transparency and accountability standards. The International Budget Partnership ranked South Africa first among 94 countries in their 2010 Open Budget Survey.
In keeping with ongoing budget reform improvements to the way that public finances are managed and reported, changes have also been made in the 2011 estimates of the national expenditure.
It is important to note that whilst the main focus is on the lack of service delivery, that does not in any way detract from the sterling work being done by many of our municipalities across the country. We must also not forget to thank the outgoing councillors who selflessly provided their political leadership, worked under difficult conditions and yet continued to inspire others with their vision, dedication and commitment.
My input today will focus mainly on migration, urbanisation, household growth, population and dynamics and its impact on planning, as well as on the municipal infrastructure grant. I will also mention and do a breakdown analysis of the Co-operative Governance and Traditional Affairs budget.
Urbanisation is a reality that confronts many cities all over the world. In South Africa, of the total population of 46 million, 19 million are rural based, while 25% are urban based. This translates into an urban population of 56%. Apart from natural growth and rural to urban or internal migration, there is also cross-border and international migration that will inevitably contribute to the substantial growth.
Owing to the neocolonial and apartheid past, South Africa has the most distorted settlement patterns which conform to race and class distinctions. Upon the dawn of democracy and the establishment of a new democratic, developmental local government, we knew that the road to transformation would be hard, long and bumpy one. We also knew that we would face challenges and sometimes face failure in some areas. But what is important and crucial is for the ANC to focus and correct our mistakes and move forward with determination.
Development patterns must not continue to reinforce the distorted apartheid spatial planning framework. We all know that it is difficult to plan or budget for people who have migrated from all walks of life. Long-term spatial planning must be undertaken within the national framework, developed jointly by the National Planning Commission and the Department of Rural Development and Land Reform.
Underground infrastructure, such as water pipes, drains and storm water systems, should be laid as the foundation. Then the provision of water and sanitation would be provided without major difficulties.
If dams, sewerage, water-treatment plants and power stations are built and well maintained, the provision of access to safe and clean drinking water and electricity will be a reality, even in scattered and sparse areas.
Each and every department's budget must ensure that installation of infrastructure is followed by a flow of service. It cannot be correct for taps to be installed but for communities to go without water. The existence of infrastructure must mean the efficient provision of basic services in an affordable manner to all our people.
A document published in September 2010 by the Department of Co-operative Governance and Traditional Affairs is titled "Progress Towards Achieving the Millennium Development Goals". This report was critical of the lack of progress and the severe impact of the global capital financial crisis. The report states that there is uneven progress in the eradication of extreme hunger and poverty, whilst there is regression in the area of employment creation.
There is still a need for government departments to work better and faster to meet the developmental challenges of the country, in particular the provision of basic needs such as water, electricity and sanitation. More importantly, investment in the installation of developmental infrastructure must mean intensifying the provision of water services to the poor and vulnerable in order to improve the living conditions of the majority of our people in rural and urban spaces.
A report produced by the SA Institute of Civil Engineering indicates that the extent of the infrastructure backlog and dilapidated infrastructure is huge. This means that there is a gap between the infrastructure needs of the country and the available skills to build and maintain the infrastructure. Through the special purpose vehicle, which is expected to eliminate infrastructure backlogs, we will succeed by working together with dedicated technical capacity in municipalities. On that note, the department must make sure that it assists municipalities to utilise the infrastructure budget allocation of R12 billion as expected.
In 2010, Cabinet approved the establishment of the bulk infrastructure fund to ensure basic service delivery. The local government equitable share transfers to municipalities amount to R346 billion of the total allocation and are intended to augment municipality-owned revenue in order to fast- track basic service delivery. We also want to support the decision that has been taken that 21 municipalities and metros have been given full accreditation to deliver houses.
Allow me, with my few minutes remaining, to quickly highlight some of the achievements and progress made where I am deployed, which is at the Msukaligwa Municipality. I just want to correct the perception that people are protesting because there is no service delivery. In the Msukaligwa Municipality 37 000 out of 40 000 households have access to water; 103 boreholes have been installed on 13 farms; 500 ventilated improved pit toilets have been built on 53 farms; 1 946 reconstruction and development houses have been built in Ermelo, Wesselton; 390 houses have been built in Warburton; 300 houses have been built in Davel; 489 houses have been built in Lothair; a modern library has been built in Wesselton; elevated water tanks have been built in Wesselton and Sheepmore; 11 km of road have been paved; and a fire station has been built in Breyton. The very same municipality where there have been protests, Msukaligwa Municipality, has been receiving unqualified audit reports for the past four years. [Applause.]
Konkhe loku ngikusho ngobe ngifuna kukhombisa live kutsi bantfu bayayibona imisebenti ye-ANC. Kungako nje baphume ngetinkhani bayawuvota. Ngitfunywe ngiyo-ke i-ANC kutsi ngiteyibongela kakhulu kubantfu baseNingizimu Afrika ngekuphuma bayewuvota.
Iyabonga kakhulu i-ANC kubahlali baseMsukaligwa kulakaGert Sibande ngekuhamba kwabo bayewuvota. Loku kukhombisa kutsi bayayibona i-ANC kutsi iyasebenta futsi bayayetsemba.
Kulamakhansela lasandza kungena-ke sitsi:Phezukwemkhono! (Translation of Siswati paragraphs follows.)
[I am mentioning all of these because I want to show the country; that people can see what the ANC is doing. That is why they came up in numbers to cast their votes. I have been sent by the ANC to come and convey a word of gratitude to the people of South Africa for casting their votes.
The ANC is saying thank you very much to the residents of Msukaligwa in the Gert Sibande district by going to cast their votes. This shows that they can see that the ANC is working and they have trust in it.
To the newly-elected councillors we say they must hit the road running.]
The ANC supports Budget Vote No 3. I thank you. [Applause.]
Agb Voorsitter, ek wil begin deur vir die agb Minister te s ... [Hon Chairperson, I would like to start by saying to the hon Minister ...]
Hon Minister, Ficksburg is proof that police matters are not compatible with local government matters. Let me be quite honest and say that you should request the hon President to release you from the acting position you are in and which you hold at the moment. You are neglecting police matters. You know, if foreigners were to come into South Africa and look at the media, they would say that they only see a commissioner; they do not see any Minister of Police. It seems as if there is no Minister. [Interjections.]
The ANC made many promises in this election. There was one promise they made which I thought was not a bad one. That promise was that the ANC - and the President, himself, said it - would get rid of corrupt officials, corrupt councillors, and people who were engaged in maladministration on local government level, and that the ANC would deal decisively with those people.
Maar, agb Minister, as ek nou vanoggend die nuus luister, kom die ANC en vat die geskorste munisipale bestuurder van die Tswaing-munisipaliteit en hulle maak hom die uitvoerende burgemeester van 'n distriksmunisipaliteit. Daardie munisipale bestuurder was geskors weens wanadministrasie, korrupsie, bedrog en diefstal, maar hy word net eenvoudig herontplooi. Met ander woorde, u het 'n valse belofte aan die kiesers gemaak. (Translation of Afrikaans paragraph follows.)
[However, hon Minister, when I listened to the news bulletin this morning, I heard that the ANC appointed the suspended municipal manager of the Tswaing Local Municipality as executive mayor of a district municipality. That municipal manager was suspended for maladministration, corruption, fraud, and theft; nonetheless, he simply gets redeployed. In other words, you made a false promise to the electorate.]
By the way, hon Minister, I want to say that the time has come to abolish district municipal councils, because they are only a dumping ground for cadre deployment and you are wasting the taxpayers' money. Abolish district municipal councils. There is no need for them; there is no use for them.
Dit ges, wil ek ook vir die DA s dat hulle ook die kiesers mislei het. Hulle het die groot belofte gemaak dat Potchefstroom deur die DA regeer sal word. Hulle het die kiesers op sleeptou geneem. Hulle het smeerveldtogte gevoer om te vertel hoe die DA Potchefstroom gaan oorneem. Die DA kon nie eens twee wyke in die bruin woongebied van Promosa oorneem nie. [Tussenwerpsels.]
Toe dr Pieter Mulder 'n perskonferensie gehou het en ges het dat die DA nie in die noorde enige munisipaliteite sal wen nie, was die joernaliste kwaad vir hom, want hy het nie die boodskap gegee wat hulle graag wou hoor nie. Hulle was kwaad vir hom. Hy het ges ek moet tog die joernaliste om verskoning vra, want hy het ges hy sien, hoogstens, dat 'n koalisie van opposisiepartye dalk Port Elizabeth se metro kan regeer. Hy was verkeerd. Hy vra om verskoning dat hy daar nie korrek voorspel het nie.
As ons beloftes maak aan die kiesers, moet ons met hulle eerlik wees. Ons moet dit uitvoer. Dit is maklik om clichs hier te kom gebruik vir goeie dienslewering: ons sal dit doen en ons sal dat doen. Dit moet in die praktyk bewys word. Ek dank u. [Tyd verstreke.] (Translation of Afrikaans paragraphs follows.)
[That being said, I would also like to say to the DA that they too had misled the electorate. They boldly promised that Potchefstroom would be governed by the DA. They were stringing the electorate along. They orchestrated smear campaigns in order to advocate how the DA would take over Potchefstroom. Yet the DA could not even take over two wards in the coloured residential area of Promosa. [Interjections.]
When Dr Mulder held a press conference and predicted that the DA would not win any municipalities in the north, the journalists were annoyed with him, for he did not convey the message that they actually wanted to hear. They were angry with him. He requested that I should apologise to the journalists all the same for his statement that, at best, a coalition of opposition parties might govern the Port Elizabeth metropolitan. He was wrong. He is apologising for not being correct in his prediction in that regard.
We should be honest with the electorate when we are making promises to them. We should implement these promises. It is easy to come here and use clichs in relation to good service delivery: that we will accomplish this or do that. However, it should be evident in our practices. I thank you. [Time expired.]]
Chairperson, this Budget Vote comes at an opportune time which is just after the local government elections have been held. There are imperative issues that need to be addressed before the dust settles. This Budget Vote also comes amidst very disturbing media reports on the executive leader of the department, and we anxiously wait to hear what the Public Protector will come up with.
I would also like to take this opportunity to wish the Minister a speedy recovery. On the same note, I would like to congratulate the Ministry and the entire department on receiving an unqualified audit report from the Auditor-General. Indeed, this is commendable, and we hope to see it replicated again and again. Having said that, the imperative and important task of addressing effectively and efficiently all the irregular expenses picked by the Auditor-General cannot be overstressed, since it is essential in rendering quality service delivery.
I acknowledge the progress made by the department in implementing the Local Government Turnaround Strategy and also the progress made in the provision of water, electricity and sanitation. Much work still needs to be done, though, and there can be no dull moment in the provision of these essential needs, which are inherent constitutional rights.
Amongst other priorities, we have heard and come to understand that the funding model for municipalities is deeply flawed and needs reviewing. This we view as an uppermost task, as service delivery to the masses depends on the fair distribution of funds across all spheres. Coherent and cohesive service delivery needs to underpin programmes and projects at national, provincial and local government level. That brings me to the following question: What is the department planning to do in order to address this flaw and when will Parliament be involved in such a process?
Mr Minister, one hurting and burning issue is that of making our traditional leaders ex-officio members of municipalities. What does that mean? It means that discussions will be held whether they are there or not. Their vote is meaningless. It is hurting. We respect our traditional leaders. Please, let that system be looked at. Thank you. [Time expired.]
Chairperson, Acting Minister, Deputy Minister, hon members and guests, two weeks ago, on May 18, our people returned to the polling booths to cast their votes. Once again, people have put their trust in the ruling party, electing the ANC to run the majority of towns and cities in our country.
We thank the people of the North West, hon Lorimer, for the 53% voter turnout and for reconfirming the mandate that they had previously given us. This time they gave us, the ANC, a 74,99% victory in the province. We assure them that we will not disappoint them. To the people of Potchefstroom, where I am deployed, we want to thank you for coming out in numbers to cast your votes, especially to the residents of the wards where we had no ward candidates registered.
Your proportional representation, PR, vote assisted us in gaining PR seats. We will continue to serve you, immaterial of the challenges faced. The DA only dreamt of taking Potchefstroom. [Laughter.]
Hierdie was 'n bewys dat, ongeag die negatiewe mediadekking wat gedurende die aanloop tot die verkiesing geheers het, asook die menige probleme wat ondervind is, die meerderheid Suid-Afrikaners nog steeds vertroue in die regerende party het.
Hierdie is 'n bevestiging dat ons mense verstaan wanneer daar ges word dat baie alreeds deur samewerking bereik is, maar dat daar nog baie is wat gedoen moet word. Ons mense verstaan dat die agterstand in dienslewering so groot is dat dit jare gaan neem om dit in te haal. (Translation of Afrikaans paragraphs follows.)
[This has served as confirmation that, despite the negative media coverage during the run-up to the election, as well as a myriad of problems experienced, the majority of South Africans still have confidence in the ruling party.
This is confirmation that our people understand when it is said that a great deal has already been achieved by co-operation, but that there is still a great deal that needs to be done. Our people understand that the backlog in service delivery is so huge that it will take years to eliminate.]
As stated in our election manifesto, the ANC is best placed to carry out this next phase of developing and transforming our cities, towns and villages, because of our values and principles, our polices, what we have learnt from our experience in government, and our commitment to ensuring that each community is actively involved in creating better communities. We also stated in our manifesto that we would ensure more effective, accountable and clean local government that works together with national and provincial government.
It is in the interests of our country's development and stability to ensure that local government works to deliver services to our people; builds and maintains infrastructure; creates employment opportunities through local economic development; enhances clean governance; and fights corruption to ensure value for money for our citizens.
In essence, all these are constitutional obligations which are an integral part of the local government mandate. Local government is also at the coalface of service delivery for all spheres of government. Therefore, integration and co-ordination of all programmes become extremely important.
Through the experience of government and working with communities, we have learnt continually which policies are working and where change is needed. It is against this background that in 2010 government introduced its approach to achieve results through identifying the 12 outcomes.
Each Ministry and department is responsible for a specific outcome through a performance agreement known as a delivery agreement. The Minister for Co- operative Governance and Traditional Affairs is responsible for the delivery agreement of Outcome 9: A responsive, accountable, effective and efficient local government system.
To achieve this vision of an integrated, responsive and highly effective system of governance, the following nine strategic goals have been identified: one, to implement a differentiated approach to municipal financing, planning and support; two, to improve access to basic services; three, to implement the Community Work Programme; four, to deliver actions supportive of the human settlement outcomes; five, to deepen democracy through a refined ward committee model; six, to improve administrative and financial capability; seven, to implement a single window of co- ordination; eight, to improve co-operative governance across the three spheres; and, nine, to strengthen the capacity and capability of the department to deliver on its mandate.
The delivery agreement is a negotiated charter which reflects the commitment of the key partners involved in the direct delivery process, in working together to undertake activities effectively and on time, to produce the mutually agreed-upon outputs which, in turn, will contribute to achieving Outcome 9.
The President and the Minister signed the performance agreement for Outcome 9 in September last year, and it reflects government's pledge to work harder, faster and smarter to develop the nation. It is a pledge to do things differently, and the performance areas agreed to reflect a determination to transcend the obstacles of the past and a commitment towards a better future.
As the portfolio committee, we want to inform the department that we will be playing a very decisive role in our oversight responsibility to ensure that the promises made to our people are indeed achieved. We are all aware that the Local Government Turnaround Strategy was approved in December 2009 to improve local government performance and service delivery through the application of correct management, administration and the development of technical skills.
The adoption of the turnaround strategy followed a process of assessment of municipalities, in which it was found that local government was in a state of distress and confronted with huge and varied problems.
With regard to the progress in the implementation of the Local Government Turnaround Strategy, we are reminded that the cornerstones of the strategy revolved around several key pillars, namely tightening the municipal supply chain management mechanisms; establishing a single window of co- ordination to curb overregulation of municipalities; implementing special purpose vehicles for infrastructure development, particularly in struggling municipalities; refining the model of ward committees to give effect to participatory democracy in communities; and establishing a single election at all three levels of government in order to save resources and build unity in line with the single Public Service, as well as the financial terms of municipalities.
Its aim in terms of the Local Government Turnaround Strategy was to mobilise all government and society to embark upon a concentrated effort to deal with factors undermining local government and to restore good performance and community confidence in the country's municipalities, leading towards the fulfillment of Vision 2014.
Various interventions have been made and programmes put into place. It is important to note that the turnaround strategy is not a one-size-fits-all mechanism, but provides an overarching guide by means of which municipalities have been assisted to develop their own municipal turnaround strategy to effectively discharge their responsibilities.
The following achievements are complementary to the key pillars: the passing of the Local Government: Municipal Systems Amendment Bill; the development and implementation of the Clean Cities and Towns project and the Operation Clean Audit 2014 programme; and the establishment of the special vehicle to drive infrastructure development.
The overall progress in the implementation of these programmes as part of the Local Government Turnaround Strategy must, however, be acknowledged and commended. We recognise that the strategy is a medium to long-term programme that is being implemented in a phased manner over a period of time.
Most of its programme objectives are included and have been incorporated within the programmes of the department, within the context of the Budget Vote being currently debated.
It is necessary to say something about fiscal dumping. It is unacceptable for departments to transfer money to municipalities just before the end of their financial year. These monies are earmarked for projects, and therefore the development of communities. Al1ocations must be transferred in accordance with the implementation plan. Holding onto funds for as long a period as possible is tantamount to theft as it withholds or impedes service delivery, and this cannot be condoned.
The ANC supports this Budget Vote. [Applause.]
Chairperson, hon Acting Minister, Deputy Minister, hon Members of Parliament, distinguished guests and colleagues, the municipal elections a couple of weeks ago have proven, yet again, that all is not well in municipalities across the country. Whilst the elections went off in a reasonably free and fair manner, in the weeks leading up to the elections riots, strikes and intimidation were the order of the day in many areas.
Residents, particularly the ones in smaller municipalities, have borne the brunt of inefficient and corrupt administrations, resulting in a lack of service delivery. Much needs to be done, as expectations have been created and delivery has not, as yet, taken place. Many residents have lost their confidence in municipalities and have either opted for violent demonstrations or withholding their rates and taxes. The DA does not advocate either of the two, especially where public buildings and property are damaged and destroyed, such as clinics and libraries. This unhappy situation is facing local government today and needs to be attended to urgently.
Some of the key priorities prior to the 2011 elections were to address the immediate financial and administrative problems in municipalities; to promulgate regulations to stem indiscriminate hiring and firing; and to tighten and implement transparent municipal supply-chain management.
The Portfolio Committee on Co-operative Governance and Traditional Affairs spent a large amount of time on the Local Government: Municipal Systems Amendment Bill. But this is yet to be signed by the President. I sincerely hope that this will not be further delayed, as the content of the amendment is vital for the smooth running of the newly formed municipalities at which the right people will be appointed for the right jobs and not just simply deployed.
The Operation Clean Audit campaign launched in 2009 set itself a target of achieving 100% clean audits by 2014 by municipalities and provincial departments alike. This can never be achieved in the absence of the departments' buying into the programme and making sure that accountability, effective oversight and conducive financial management are the order of the day.
The DA welcomes the allocation of R196,7 million for the establishment of a technical support programme that will support municipalities in building their capacity for infrastructure planning. Delivery and rehabilitation, monitoring and management of progress will be some of the key elements attached to the funding so that the set goals will be achieved.
The 30% cut from Gauteng's infrastructure grant to R285,7 million is a slap in the face for the residents of Gauteng who have had to endure, day in and day out, hours of delays on Gauteng's roads, getting to work late, missing flights and having to contend with huge delays and backlogs on the roads. Yet the provincial department or the premier does not seem to be fazed about this. Surely, the funds lost could have rather been used for the upgrading of the roads than the installation of the new tolling system that has angered all the residents, not to mention the additional financial burden it places on the commuters?
The municipal infrastructure grant provides funding for basic services. This programme has a budget of R9,5 billion, of which 100% of the funds is used for transfers to municipalities for the eradication of backlogs and to supplement the municipal budgets. The targets for the 2010-11 financial year were basic water: 1,4 million households; basic sanitation: 808 000 households; roads: 1,1 million households; and community lighting: 540 186 households. It would be interesting to know if these targets have been achieved, and to be advised about the quality of the installations.
During the portfolio committee's oversight visits to the provinces, we saw failed and inferior municipal infrastructure grant, MIG, projects in which the contractors were paid out without the necessary oversight exercised over them and who have since disappeared. The communities were left without the projects being completed to their satisfaction, leaving them angry and disillusioned.
Hon Acting Minister, it is imperative that action is taken against municipalities and individuals that abuse MIG funding. Hon Minister Shiceka on numerous occasions agreed that these unscrupulous individuals should be blacklisted, but I am yet to see such a register. Will you be implementing such a register in order to prevent unsuspecting municipalities from becoming victims of these smooth operators?
During the floods, many areas throughout the country were hard hit, and the Northern Cape was probably one of the worst affected areas in the country. Whilst the disaster management teams need to be complimented for their tireless efforts and hard work, the same cannot be said for the provincial government departments of the Northern Cape. It took them 10 days before they enquired if the affected municipalities needed any help. Obviously, intergovernmental relations have failed and the affected communities left destitute. Better co-ordinated and successful intergovernmental relations are vital to ensure efficient and fast responses.
Disaster management teams sent to assist earthquake-hit areas around the world - of which we have seen too many - really must be commended for their tireless efforts and dedication. With there being definite evidence of the effects of climate change and global warming, disaster management teams will certainly have their work cut out for them. In future, if we are to mitigate the potential disastrous impact of climate change, I cannot help but wonder if the budget allocated will be sufficient for disaster management teams to carry out their duties, which they have done so efficiently in the past. Minister, this needs closer scrutiny.
The Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities recently made a presentation to the portfolio committee. The presentation confirmed, yet again, that the commission would be better placed with Arts and Culture and not with Co-operative Governance and Traditional Affairs. I have advocated for this many times and feel that if we want this commission to succeed, it needs to be within a portfolio group where it can be given its just status and exercise its mandate.
Its existence under the present circumstances is nonviable and needs to be relooked at urgently. The budget and the percentage used for carrying out its mandate show that this entity has a bloated staff remuneration budget and little for projects. This means that it has unfortunately become an employment agency rather than a problem-solving body.
Hon Acting Minister, the DA welcomes the savings and cost-effective measures that the department has identified in the savings of R12,5 million in the 2011-12 and R15,2 million in the 2012-13 financial years. The savings identified in the replacement of consultants with skilled personnel, travelling economy class only, using less costly venues and facilities, and catering for internal meetings are to be commended. Let this trend continue and cascade down to all departments. Thank you. [Time expired.] [Applause.]
Sihlalo, Mphathiswa, Sekela Mphathiswa, maLungu eNdlu yoWiso-mthetho, zindwendwe zethu ezibalulekileyo. [Hon Chairperson, hon Minister, hon Deputy Chairperson, hon Members of the House, distinguished guests.]
In deliberating about the role and place of traditional leadership it is fitting to visit the history of our society and awaken our collective memory.
Since time immemorial, kings have led heroic struggles against settlers and colonial forces throughout Southern Africa. These leaders waged determined resistance wars to protect the territorial integrity of their nations against invasion and intrusion by colonial and apartheid missions. Their relentless efforts left an indelible mark, and history is blessed by footprints which propelled liberation movements to honour and advance the cause of freedom. The colonial history of our land reveals the admirable struggles by our forefathers, by kings in the frontier wars during which Hintsa, Maqoma, Sandile, Nxele and many others on the Eastern frontier lost their lives. Who can forget the victorious armies of the people led by the likes of Bambatha during the Bambatha Rebellion, and King Cetshwayo's decisive defeat of the British forces in the now celebrated "Battle of Isandlwana"?
It is an inescapable reality that kings, chiefs and traditional authorities played a fundamental role in defending the people of South Africa against foreign and settler aggression. Some paid the ultimate price, while others were dethroned by the colonial regime. It is also inescapable that kings, chiefs and traditional leaders played a pivotal role in founding the oldest liberation movement on the African continent, the ANC. And one is reminded of the leading role played by Chief Albert Luthuli.
This is a history that Africans treasure, and it is a reality that continues to inspire many traditional authorities to play a constructive role in lifting the black majority out of abject poverty. Therefore, it is encouraging that in our democratic dispensation the role of traditional leadership is being debated, considered seriously, in order to contribute to the fight against the enormous challenges posed by present-day South Africa.
The recognition of the relevance of traditional leadership is evidenced by the incorporation of the institution of traditional leadership in the Constitution in Chapter 12 in terms of which the institution, status and roles of traditional leadership, according to customary law, are recognised. The fact that the visionary leaders who crafted the Constitution had the wisdom, taking into account our history and present concrete reality, to make space for traditional authorities in the development discourse is instructive.
Further, the establishment of the Department of Traditional Affairs bears further testimony to the commitment of the ANC-led government to promoting the developmental democratic role of the institution of traditional leadership. The department's vision of "an effective and efficient institution of traditional leadership that enhances sustainable development and service delivery" is consistent with the general thrust of building a developmental state. The department also casts it in a complementary and supportive role for local government in promoting sustainable development and service delivery.
There is a concern that we must register about the inadequate funding for the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. This is one of the most important institutions in our country, especially if we are to move forward in the quest for nation-building and the promotion of our nascent democracy.
Traditional institutions, as prescribed by the Traditional Leadership and Governance Framework Act, Act 41 of 2003, as amended, must constitute themselves in line with gender representivity. More especially, the traditional councils must adhere to the criteria that 40% of people must be elected democratically from traditional communities. The Department of Traditional Affairs must ensure that traditional councils are legitimate. The department must use its allocated share of the budget, amounting to R97 million, to strengthen the institution of traditional leadership.
The country is experiencing rapid urbanisation. However, we need to accept the reality that more than 42% of our population still resides in rural areas. This is where extreme poverty, unemployment and lack of service delivery are acute. Municipalities in these areas, in the majority of cases, are economically unviable and rely on national government grants and support.
The 2009 election manifesto of the ANC sets rural development and sustainable livelihood as key priorities. President Zuma made an assurance to South Africans during his inauguration at the Union Buildings in 2009. He said, and I quote: "For as long as there are rural dwellers unable to make a decent living from the land on which they live ... we shall not rest, and we dare not falter," in our drive to eradicate poverty.
The commitment has been a common thread in terms of prioritising rural development, asserting that rural dwellers are also entitled to running water, electricity, sanitation and economic development. The Comprehensive Rural Development Strategy of the Department of Rural Development and Land Reform is a progressive strategy of poverty eradication in rural communities.
It is important to stress that the economic capability of rural communities needs to be radically improved by investing in infrastructure such as the roads network, bulk infrastructure in the form of water and electricity, and public infrastructure, for example schools, clinics and other public services. Radical investment in such activities will ignite the economic potential of rural communities and improve their participation in the economy and the country's GDP. This will benefit local authorities as it will enable residents to pay for municipal services, improve revenue collection and discourage out-migration.
The country has just emerged from local government elections which were a resounding success. South Africans have faith in democratic systems and they have given practical expression to the injunction that "The people shall govern."
Le nto ithetha ukuba abantu bayakulawula; abasayi kulawulwa ziinkosi. [This means that the people shall govern; they will not be governed by chiefs.]
It is important that after these successful elections councillors are properly inducted and trained for the duties ahead. It is critically important to ensure that citizen participation does not end in the vote but that it extends to the daily operations of the municipalities. The citizens must participate in the integrated development plans, and in the budget and performance management of the municipality, as prescribed in the Local Government: Municipal Systems Act, as amended, and the Local Government: Municipal Finance Management Act.
People must participate in the ward committees and entrench the culture of popular participation in the people's organs.
Iikomiti zeewadi zona zisebenzisana norhulumente, ukanti ikhona imibutho yabahlali eliliso labantu ejonga ukuba ingaba urhulumente uyazizisa na iinkonzo ngokufanelekileyo ebantwini. Ikhona ke nemibutho efana ne-Sanco, edlala le ndima. (Translation of isiXhosa paragraph follows.)
[Ward committees work together with the government, whilst there are community organisations which observe whether government is delivering services properly to the people. There are organisations like Sanco, which play this role.]
It is critically important that we support this Budget Vote so that we can encourage the partnership between our people, local government and other spheres as well as with traditional leadership in order to promote rural development.
Umbutho wesizwe uyaluxhasa olu Hlahlo-lwabiwo-mali. Ndiyabulela. [Kwaqhwatywa.] [The people's party supports this Budget Vote. Thank you. [Applause.]]
The ACTING MINISTER FOR CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS (Mr E N Mthethwa: Chair, I would like to thank hon members for their contributions.
Firstly, I just want to remind the House that Cogta undertook an exercise of assessing municipalities and came up with a report on the state of local government. It is that report which led us to develop the Local Government Turnaround Strategy and the municipal turnaround strategy.
As the ruling party, we will continue to ensure that the lives of people are bettered. We are addressing and redressing what has been there for a very long time.
The benefits of these programmes relate to Operation Clean Audit. I did enumerate the number of municipalities that have turned the corner in terms of their audits, and we will continue in that vein, particularly where service delivery and providing for the needs of the people of our land are concerned.
Those who rejoiced when people were protesting, thinking that they may get some crumbs in the form of support from those protesters, are disappointed, because those particular localities who protested voted for the ruling party. It does not necessarily mean that when people protest they have turned their back on the ruling party. It simply means that the ruling party must accelerate that very service delivery programme, which it has.
The hon Lorimer surprised me. He talked about the ANC's unimpressive performance of 62%. He must disabuse himself of the idea that 24% is bigger than 62%! [Laughter.] He must get to know basic arithmetic. If you understand this arithmetic, then you would know what the bigger picture is and you would know what is happening.
The other point which we need to make concerns this thing you continue to say about Mandela's ANC being better than the current ANC, or Zuma's ANC. First and foremost, we should welcome the fact that you can now see the light, that it is only the ANC which can provide the nation and the international world with a leader. There are many of them. It is not only Mandela. There are many. Thank you for recognising that. [Applause.]
You are not anywhere near that and you won't be anywhere near that. You know you are ashamed of mentioning your predecessors, because you don't have any role models in so far as that is concerned. [Applause.] So you come here and you talk a lot of politics which has not ...
Ungithinte kahle uma ukhuluma ngoKhongolose. [You have actually started with the issue that I wanted to start with, when you talk about the African National Congress.]
Mandela always emphasised collectivism, not the individualism which you have religiously pursued and followed. You have followed an individual leader. The Mandela you talk about is the same Mandela of the pre-armed struggle. He's the same Mandela that was the commander-in-chief of uMkhonto weSizwe. He's the same Mandela which you and your friends said was a terrorist. It is the same Mandela. It is the same Mandela who grew to be the leader and the head of state. You are not going to tell us about that. We are just glad that you can now see the light. You'll continue to see the light, slowly but surely; we are not rushing you. We will ensure that you are on board on everything.
You made a very fantastic, dramatic confession by stating that spending does not necessarily mean delivery. Is that a confession about Cape Town in relation to those areas which have not received delivery? There are areas which have not received delivery. I am glad you made that statement. You see, we said that before, but you didn't want to admit to it because you were in an election mood, but now you know you see things clearly. We can see clearly now, the rain is gone. [Laughter.] Thank you very much! Hon Groenewald, I nearly rose on a point of order, because I thought you thought that seeing me, as Minister of Police, meant I was talking about the budget of the Police. There is no way that the department you were talking about is in the state you are saying, but I am not going to refute that because you corrected yourself. You realised then that it is another budget. Thank you very much for that realisation. [Applause.]
Well, I think my friend, hon Singh, you made a mistake when you said you were improving the roads. I think that was an innocent mistake, because you can't improve the roads in local government. We are trying to uproot that. I don't know, again, whether you were also making a confession of what you did with local government and so on ... [Laughter.] ... but I want to believe that ...
Hon Chair, thank you very much. I think the discussion was fruitful and we have learnt a few things and some of our friends have learnt things here. Thank you very much. [Applause.]
Debate concluded.