Hon Chairperson; the Deputy Minister for Co-operative Governance and Traditional Affairs; our MECs from the Department of Co-operative Governance and Traditional Affairs, Cogta; Co-operative Governance, Human Settlements & Traditional Affairs, CoGHSTA; chairperson of the portfolio committee and other members of the extended public committees; our Chairperson of the National House of Traditional Leaders; Chairperson of the SA Local Government Association, Salga, and other chairpersons of associated institutions; our mayors present here; senior leaders of our Public Service Prof Nwaila, Mr Madonsela and Mr Mahlawe; our royal and indigenous leaders; our Jamaican guest Minister, Noel Arscott, and his delegation - Minister, please rise. [Applause.]
Ladies and gentlemen, we present this budget today fully committed to a more integrated system of local government where the three spheres of government recognise their distinctiveness based on their respective mandates, but fully accept that they owe it to each other to realise their objectives of being active agents of the people's government in the knowledge that they are interdependent and inter-related.
It is a fact that the more integrated our co-operative governance, the more effective we will be as a state and the greater our capacity will be to deliver services and ensure development.
The Department of Co-operative Governance has been allocated an amount of R56,12 billion, including transfers that go to municipalities for this financial year. We believe that this will provide the necessary means to facilitate support to municipalities and co-ordinate governance amongst the three spheres to contribute to the realisation of the objectives of the National Development Plan.
The Department of Traditional Affairs is allocated an amount of R105 million to continue with its agenda of further transforming the institution of traditional rule, whilst continuing to lay one brick on top of another as a new department, to be fully configured and functioning in line with all programmes of Traditional Affairs, including dealing with questions related to marking the centenary of the Native Land Act and effectively managing the impact of the reopening of the lodgment date for the land reform processes.
The Municipal Infrastructure Support Agency, Misa, is allocated an amount of R252 million to continue providing the necessary technical and professional support to enhance the capacity of our municipalities to deliver the services.
The Community Work Programme, CWP, is allocated R1,6 billion. Last year we presented the budget of the Ministry, restating our commitment that the Local Government Turnaround Strategy remains the road map for effective support to the local sphere, comprising of both municipal constituencies and the traditional communities.
Leri hi rona pfhumba ra ku cinca matirhelo eka mafambisele ya vamasipala. Hi tekile xiboho xa leswaku hi tirha hi karhi hi tivutisa leswi hi faneleke ku endla swona loko hi ta tshama hi tsakisa vanhu hi nkarhi hinkwawo wa vukorhokeri bya hina.
Leswi hi swi endla hi ku tshama hi ri karhi hi tsundzuxiwa hi vamavonelakule loko va hi luma ndleve va ku: Lebya nyarhi leyo, u nga ri ndza yi vona, hikuva u ta ya wela makokweni ya yona. Hi ku tirha kun'we, a hi nge tsandzeki. (Translation of Xitsonga paragraphs follows.)
[This is the turnaround strategy in respect of the administration of municipalities. We have taken a decision that we must work whilst asking ourselves what it is we must do if we are to always satisfy the people in our services.
We do this as a result of being always reminded by the television when it warns us to be on our guard. By working together, we will not fail.]
We stated our understanding that the best mechanism to build confidence between the people and the municipalities is to address the following priority issues: firstly, accelerating service delivery; secondly, promoting good governance; thirdly, enhancing sound financial management; fourthly, rolling out infrastructure development and effective maintenance; and lastly, intensifying the fight against corruption.
Today we want to reflect on some highlights relating to these five issues and also refer to some practical interventions in dealing with challenges that confront the local sphere from time to time. Suffice it to mention, at this stage, that most of the challenges that confront the local sphere are either not the key competencies of the sphere or are influenced by external factors.
While we have to accept that there are some dramatic negative developments in some areas, we should not degenerate into labelling all councillors as "failures" and "rotten apples". The environment in which local government structures find themselves is complex, and we should be ready to engage and support them.
Regarding issues of the audit outcomes as part of financial management, the analysis of the reports from the provinces indicates that a number of provinces are pushing hard towards the achievement of a clean audit by 2014.
The following municipalities have consistently received a clean audit for three consecutive years: Ehlanzeni District and Steve Tshwete Local Municipalities. [Applause.] The West Coast as well as Swartland Municipalities in the Western Cape and Umtsheni in KwaZulu-Natal also received clean audits for two consecutive years. [Applause.]
With regard to unqualified audit outcomes, which is good performance, KwaZulu-Natal, which has a total of 61 municipalities, has managed to retain its performance in the improvement of the outcomes with over 70% of its municipalities getting unqualified audits, followed by Gauteng with 76%. [Applause.] Although Gauteng does not have clean audits for the 2011- 12 financial year, 75% of its municipalities received unqualified audits, which is a remarkable performance.
We recently convened a meeting with 167 municipalities that did not receive unqualified reports, with matters of emphasis also mentioned. We have since put them on a list of municipalities that need to be supported. Listening to the issues that these municipalities raised, it is clear that there is more to the issue than meets the eye. We are therefore putting together a team to reflect on a programme that will enhance their financial performance as well as to reflect on policies.
According to census data, it is indicated that the proportion of households with access to piped water has increased significantly since 1996. Access to piped water in dwellings or yards has increased significantly from 60,7% to 73,4%, as per Census 2011. During the same time, the percentage of households with no access to piped water decreased from 19,7% in 1996 to 8,8% in 2011. The provinces with the best access to piped water in dwellings or yards in 2011 were Gauteng with 89,4%, the Free State with 89,1% and the Western Cape with 88,4%.
Provinces where significant percentages of households do not have access to piped water were the Eastern Cape with 22,2%, KwaZulu-Natal with 14,1% and Limpopo with 14,0%. There are only 1,8% households in Gauteng with no access to piped water, followed by the Free State and the Northern Cape at 2,2% and 2,6%, respectively.
It is encouraging to note that the percentage of households that had no toilet facility, or used bucket toilets, has declined over the years. Census 2011 shows that the country still has just over 270 000 bucket toilets. All municipalities that fall into this category have been convened together with the 167 municipalities that performed below the unqualified audit report mark so that we can embark on the accelerated programme to address this matter.
Households that have flush toilets connected to the sewage system increased to 57,0%, according to Census 2011, from 50% and 55% according to both Census 2001 and Community Survey 2007, respectively.
Those households which have flush toilets with a septic tank were lower in Community Survey 2007 at 2,8%, compared to 3% and 3,1% in Census 2001 and Census 2011, respectively.
Households that have a pit toilet with ventilation, what we refer to as ventilated improved pit, VIP, toilets, also increased to 8,8% in Census 2011, from 5,6% and 6,6% reported in Census 2001 and Community Survey 2007, respectively. Access to a pit toilet without ventilation declined from 22,3% in Census 2001 to 19,3% in Census 2011.
The bucket toilet system was more common according to Census 2001 at 3,9%, compared to the results of Community Survey 2007 and Census 2011 that reported 2,2% and 2,1%, respectively.
The percentage of households that were without toilets declined significantly to 5,2% in Census 2011, from 13,3% and 8,3% reported in both Census 2001 and Community Survey 2007, respectively.
Census data shows that, since 1996, grid electricity has been more common in South Africa as a source of energy for lighting. Households using electricity for lighting increased from 58,2% in 1996 to 84,7% in 2011, while those using paraffin and candles decreased over the same period from 12,7% to 3,0% and from 28,7% to 11,4% in 1996 and 2011, respectively.
The proportion of households per province using electricity as a source of energy for lighting increased over the period. The highest proportion was recorded in the Western Cape with 93,4%, while the lowest was recorded in the Eastern Cape with 75%.
Census data further shows that the percentage of households that have their refuse removed weekly by the municipality has increased consistently from 52,1% in 1996 to 62,1% in 2011, while those households whose refuse was removed less often declined from 2,2% in 2001 to 1,5% in 2011.
We have to relate these figures so that when we talk about municipalities, instead of generalisation, we actually talk about facts. If we don't talk about facts and don't raise issues, our judgment sometimes is unfair.
With regard to good governance, all municipalities have established ward committees. Ward operational plans have been developed and are being implemented and monitored. There are 10 municipalities that fall under section 139 of the Constitution, which is an act of good governance. Section 139 should be understood to provide support to municipalities rather than it being seen as a punitive measure.
As far as intensifying the fight against corruption is concerned, we are at an advanced stage in finalising an agreement between the local government anti-corruption inspectorate and the investigative unit that has forensic powers in order to address the limitations that are there. We are due to pronounce clearly, in August, on this matter.
We are taking seriously the need to accelerate the delivery of services. Hence we resolved to build on the capacity-building initiatives that have been made in all the spheres, including through Salga. We made it clear in the Local Government Turnaround Strategy that local government is everybody's position. We are now experiencing a quick response by people wanting to be part of it and being serious about it.
Business formations are polishing their offers for a massive engagement to enhance the capacity of our municipalities to deliver the best services, even in areas that have responsibilities devolved to municipalities as unfunded mandates.
We are going to have a major launch of partnerships between the municipalities and business organisations in August 2013. Some of these partnerships will address the delivery of basic services through what is called turnkey initiatives for the delivery of services such as water, electricity, sanitation and others.
Today, Business Unity SA, Busa, requested to make a public offer on their areas of interest in partnership with municipalities. Their offer is detailed as follows. The initial areas of focus for this agreement will be in six priority areas, as agreed upon by the parties. The local economic development, LED, area's priority is intended to maximise the economic potential of municipalities or local government and the business environment in the various provinces. It aims to enhance the resilience of macroeconomic growth through increased local economic growth, employment creation and developmental initiatives. Private companies will be mobilised to support organised local government as well as prospective municipalities to achieve the above effect.
Regarding energy and climate change, the parties will integrate climate change response measures at municipal level. Particular reference is made to energy, although further opportunities may be explored based on the needs of the parties.
As far as capacity-building and institutional development in local government are concerned, we aim to enhance the skills and organisational systems of municipalities towards improved service delivery.
Public-private partnerships agreed to co-ordinate and facilitate improved and innovative ways of co-operation between municipalities and business in a way that supports the developmental mandate of the municipalities.
With regard to promoting good governance and the eradication of corruption, the parties will monitor developments and report on issues requiring joint attention over time, and work towards institutionalising a platform dedicated to monitoring and managing this process.
The parties will further identify issues that promote business retention and expansion that will contribute to local economic growth and development. Parties also agree that priority areas may change with time, or that additional priorities may be identified and added in the future, with the agreement of the parties.
We are also proud to announce that Absa is on board, and they will focus on the following areas: firstly, development of effective financial management skills for leaders and managers in local government; secondly, governance upliftment through advisory support on effective and transparent procurement; and lastly, leadership development in affordable housing.
In addition, a consortium of three companies is ready for signing a partnership with any municipality on public-private partnerships, PPPs, to include information and communications technology, ICT, and effective billing systems. This consortium comprises the SAP, Guma and Gijima.
Timhaka leti ta ku antswisa ntokoto wa vamasipala ku korhokela matiko i nyimpi leyi hi nga ta yi lwa, hi yima ntsena hi ku twa rhambu ku tshoveka. [Va phokotela.]
Hi rhamba mani na mani ku hoxa xandla eka ku tiyisa vamasipala va hina, a hi siyi munhu. A swi lavi ntsena mali ku tirhisana na vamasipala, hambi hi mavonele swa koteka. (Translation of Xitsonga paragraphs follows.)
[The issue of improving the capacity of the municipalities to service the communities is a war that we will fight; we will stop only when there are no resources to fight with. [Applause.]
We call upon everyone to contribute towards the strengthening of our municipalities; we aren't leaving anyone out. Not only money is needed to co-operate with the municipalities, even with comments it is possible.]
In partnership with the Department of Higher Education and Training, we will soon be launching a capacity-building programme for our councillors and traditional leaders to take accredited ... [Time expired.] [Applause.]