In the first instance, the Auditor-General himself, who is independent and whom you have a lot of respect for, I know, says that there is improvement. The facts speak for themselves - there has been a marginal improvement over the last three to four years. But clearly, if you look at the goals of Operation Clean Audit, the progress that has been secured over the last three years is nowhere near what is necessary. I think we agree on that.
As for what we are doing, I refer you to my earlier replies, and just remind you in a nutshell that it is bringing together the Auditor-General's office, the SA Local Government Association, the Development Bank of Southern Africa, DBSA, us as the Department of Co-operative Governance and Traditional Affairs, and other relevant stakeholders to actually have an intensive programme to address this issue. It will not happen overnight.
We are very clear that the better municipalities manage their finances, the better they are able to improve service delivery and development, and the reverse applies. The more focused they are on service delivery and development, the better they will manage their funds. So we are in agreement that it needs to be improved, but we certainly don't agree that there has been no progress, not at all. Mr Botha, you know for a fact as well that there has been improvement. What you are focusing on is only one element of the report, without looking at the report as a whole. I refer you to what the Auditor-General has said in the public domain. He also, by the way, insists that while the progress has been marginal, it is certainly the foundation on which Operation Clean Audit targets can indeed be achieved. So actually he himself says that he is quite optimistic, based on the achievement of the limited progress we have had over the last three years.
Position regarding possible amendment of definition of residential properties, and the impact of such amendment
77. Mr J R B Lorimer (DA) asked the Minister for Co-operative Governance and Traditional Affairs:
(1) Whether, with reference to his Deputy Minister's statement (details furnished) on 18 July 2011 in respect of the amending Bill to the Local Government: Municipal Property Rates Act, Act 6 of 2004, he intends to amend the definition with regard to residential properties in the amending Bill before tabling it in Parliament; if not, what is the position in this regard; if so, what will the proposed change be;
(2) whether he has conducted a study on the impact that the specified definition of residential property will have on (a) municipal revenue, (b) tenants, (c) the property market and (d) retired citizens whose primary income is from property rentals; if not, why not; if so, what are the relevant details in each case? NO2316E