National Assembly - 30 May 2001
WEDNESDAY, 30 MAY 2001
____
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:02.
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.
QUESTIONS AND REPLIES - see that book.
NOTICES OF MOTION
Mr S M RASMENI: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes that the Minister of Minerals and Energy, the hon Phumzile Mlambo-Ngcuka, was honoured with a Tribute Achievers Award 2001, for her role in empowering women;
(2) further notes that the Minister of Foreign Affairs, Minister Nkosazana Dlamini-Zuma, was also honoured for her role in the peace initiative and a return to democracy in the DRC;
(3) believes that these awards serve as an acknowledgement of the invaluable contribution of these comrades in improving the lives of our people in the country and in the continent; and
(4) congratulates both Ministers for having received these awards.
Amandla!
HON MEMBERS: Awethu! [Applause.]
Mrs S V KALYAN: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House -
(1) welcomes the news that the fight against mother-to-child transmission of HIV is being won in the Western Cape;
(2) commends the DA for its proactive steps to save the children of HIV- positive mothers through the provision of antiretroviral drugs to pregnant women in clinics in the Western Cape, a service which will be available to 95% of pregnant women who attend clinics in the province within a year; and
(3) calls on the ANC to govern in the interest of all the people and to provide accessible care to HIV-positive South Africans, particularly pregnant women.
[Applause.]
Mr M S M SIBIYA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House -
(1) sadly notes that one TB hospital in the Western Cape and two in the Eastern Cape are going to close due to mismanagement by Santa;
(2) is concerned that Santa has caused a public outcry over its ill- treatment of patients who had paid for admission to these hospitals, expecting decent treatment; and
(3) calls on the Department of Health to monitor the activities of Santa in hospitals closely so that patients receive the care they deserve.
Mrs N D MBOMBO: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes the comments by the National Director of Public Prosecutions, Adv Bulelani Ngcuka, that interventions by the police and his Office have brought an end to political violence in KwaZulu-Natal and urban terror in Cape Town;
(2) also notes that within two years most gang leaders, Pagad members, taxi hitmen, drug dealers and mercenaries are either behind bars or are being tried;
(3) further notes that Rashied Staggie and nine others will be tried for alleged theft of arms and ammunition from the Faure military base;
(4) commends the efforts and commitment of the National Directorate and the SAPS; and
(5) calls on all our people to support their efforts by reporting crime in order to assist speedy investigations …
[Time expired.] [Applause.]
Mr J DURAND: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House -
(1) notes the confession made by Mr P Naidoo, convicted accused in a cash- in-transit robbery, that R31 million was used to fund the SACP; and
(2) urges President Mbeki to investigate the allegations, demand that the ANC-SACP alliance partners come clean and inform the nation if they received any funding before or after 27 April 1994 from the proceeds of crime.
Ms A VAN WYK: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the UDM:
That the House -
(1) expresses its disgust at several embarrassing incidents of criminal behaviour involving the VIP Unit protecting the President, members of the Cabinet and members of the Executive Councils of provinces;
(2) notes that various incidents of fraud, hijacking, theft and corruption are a direct reflection of the unit’s incompetences, which is further exacerbated by the ANC’s dysfunctional strategy of interfering in the appointment of undisciplined members to the VIP Unit; and (3) questions the appointment procedures and the lack of proper criminal liability checks and balances on members of the VIP Unit that are fraught with various levels of crime.
Mr M A MAPHALALA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes that the MEC for social services and population development, Angeline Motshekga, launched a children’s court in Sebokeng on Monday;
(2) believes that this signals a commitment by Government to provide resources and to ensure that those who are guilty of child abuse face the full wrath of the law; and
(3) welcomes this new project by Government to bring courts closer to the people.
Mrs P DE LILLE: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move: That the House -
(1) notes -
(a) with dismay the lack of knowledge that some parliamentarians and
the Government display regarding the South African Constitution;
(b) that such incidences of ignorance are displayed to the public on
a regular basis;
(c) that the lack of knowledge of the Constitution is severely
hampering the efficient and correct working of Parliament, and
as a consequence is impeding the accountability process; and
(d) that Parliament and the Government cannot expect citizens of
South Africa to have respect for them or the institutions they
represent whilst such ignorance remains commonplace amongst
parliamentarians;
(2) calls on the Speaker to institute a compulsory programme of education on the Constitution for all parliamentarians; and (3) suggests that, following such a compulsory programme of constitutional education, all parliamentarians must sit for a compulsory examination on the Constitution before taking their place in Parliament and participating in parliamentary procedures.
[Applause.]
Dr A I VAN NIEKERK: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the FA:
That the House -
(1) commends the Minister and the Departments of Agriculture and Land Affairs for the ongoing negotiations to resolve the issue of the expropriation of the farm Boomplaatz, in the Lydenberg area; and
(2) notes that this mature approach augurs well for the resolution of similar problems, such as the Mangethe invasions in KwaZulu-Natal and elsewhere.
[Applause.] Mrs M L NGWENYA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes that Agri South Africa, the National African Farmers Union, the SA Agricultural, Plantation and Allied Workers Union, and the Food and Allied Workers Union have signed an agreement which will, amongst other things, make it easier for unions to recruit on farms;
(2) further notes that the agreement covered wide-ranging issues, including employment conditions, human rights issues, HIV/Aids and social security benefits; and
(3) welcomes this agreement as it will contribute positively to the normalisation of labour relations on farms.
Mrs G M BORMAN: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP:
That the House -
(1) notes that the ANC-run Durban Unicity has hired Linda Zama Management Consultancy as a public relations consultant at R112 000 per month - R82 600 per month more than the lowest bidder;
(2) further notes that -
(a) in January this year, the ANC gave Linda Zama a R232 000 bail-
out to settle her outstanding legal fees; and
(b) the council is spending R185 000 to upgrade the mayoral 4x4
vehicle, while the city is facing an unprecedented 29% increase
in their water bills; and
(3) therefore calls on the ANC in the Durban Unicity to revoke its contract with Linda Zama Management Consultancy and its decision to upgrade the mayoral vehicle and to focus on the important issue of service delivery to all the people of Durban.
[Applause.]
Nkk L R MBUYAZI: Somlomo, ngenza isaziso sokuthi ngelanga elilandelayo lokuhlala kweNdlu ngiyophakamisa: Ukuthi leNdlu-
(1) ishaqekile kakhulu ngoukuzwa ngomfundi wesikole uMzomusha Primary eNanda, KwaZulu-Natali, uPhilisiwe Zulu (14) otholakale eshonile nesidumbu sakhe sesiqala ukonakala okusoleka ukuthi wadlwengula wabe esedutshulwa;
(2) ikhala kanye nomndeni wakwaZulu, iwukhulekela ukuba usheshe ududuzeke ngalesi sehlo;
(3) iyashaqeka futhi iyababaza ukuthi uthe umsolwa esebanjiwe ngalolu daba wabuye wadedelwa ngoba kuthiwa ubufakazi abuhlangani kahle; no
(4) kuthi iphakamisa ukuba ihlathi eliseduze kwalesi sikole eselidale ukuba abafundi abaningi balesi sikole badlwengulwe futhi babulawe, licatshwe ukuze kuphephe izingane. (Translation of Zulu notice of motion follows.)
[Mrs L R MBUYAZI: Madam Speaker, on the next sitting day of the House I shall move: That the House-
(1) is shocked to hear about Philisiwe Zulu (14), a student of Mzomusha Primary School in Nanda, KwaZulu-Natal, whose decomposing body was found, and it is suspected that she was raped and then shot dead;
(2) sympathises with the Zulu family and prays that they recover quickly from this tragedy;
(3) is surprised and perturbed that after the suspect had been caught, he was released on the grounds that there was not enough evidence linking him to the crime; and
(4) proposes that the forest near the school, in which many students have been raped and killed, should be destroyed, as this will save the lives of our children.]
Chief M NONKONYANA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes with profound sadness the death of Mr Sithembiso Mashiyane, Chairperson of the UDM in Philippi;
(2) further notes that he was robbed of his firearm and cellphone before being fatally wounded with a firearm;
(3) condemns this senseless criminal act and calls on the community to assist the police in their investigations; and
(4) expresses and sends its heartfelt condolences to the Mashiyane family, friends and relatives.
[Applause.]
Mr I J PRETORIUS: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House -
(1) notes that the executive mayor of Tshwane has allocated R2,5 million of the budget for the erection and maintenance of an official residence;
(2) further notes with alarm that the need to entertain guests is given as one of the main reasons for the erection of the official residence;
(3) urges the mayor of Tshwane not to waste taxpayers’ money on extravagant status symbols while local government is in a financial crisis and services are deteriorating; and
(4) calls on the mayor rather to focus on the people’s needs and to spend his time and effort on improving service delivery to all the people.
Dr G W KOORNHOF: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the UDM:
That the House -
(1) expresses its concern at the announcement yesterday by Statistics South Africa that real GDP growth for the first quarter of this year was only 2%;
(2) notes that not only is this growth down from 3,2% in the previous quarter, but that it will also be virtually impossible to reach the Government’s 3,5% growth rate targeted for this year;
(3) acknowledges that a continuous and minimum real growth rate of 4% is the bare minimum for South Africa to turn around the unemployment crisis and activate a sharp increase in the rate of investment; and
(4) further notes that the above-stated scenario, together with the continued pressure on citizens in the form of escalating fuel prices, all translate into increased suffering for the poorest of the poor.
Mrs T P SHILUBANA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House -
(1) notes that the national Department of Health has criticised the Universities of Stellenbosch and the Free State for disadvantaging black students by offering medical courses in Afrikaans;
(2) believes that it is morally wrong and unethical to use language to disadvantage a section of our population and that this is a perpetuation of the discriminatory practices of the past;
(3) further believes that language should be used for communication and to enhance unity in diversity amongst our people;
(4) echoes the sentiments expressed by the national Department of Health; and
(5) calls on these two institutions of higher learning to desist from using language to disadvantage and divide our people.
[Applause.]
HONORARY DOCTORATES CONFERRED ON DEPUTY PRESIDENT JACOB ZUMA
(Draft Resolution)
Mr G Q M DOIDGE: Madam Speaker, I move without notice:
That the House -
(1) notes that last Friday the University of Fort Hare conferred an honorary Doctor of Law degree on Deputy President Jacob Zuma;
(2) further notes that last Saturday Medunsa conferred an honorary Doctor of Philosophy degree on Deputy President Jacob Zuma;
(3) recognises that these awards are appropriate recognition and acknowledgement of the prominent role that Deputy President Zuma has played in the struggle for a democratic, nonracial and nonsexist South Africa and his sterling role in nation-building; and
(4) congratulates Deputy President Zuma on these historic achievements.
Agreed to.
FORMATION OF AFRICAN UNION
(Draft Resolution) Mr G Q M DOIDGE: Madam Speaker, I move without notice:
That the House -
(1) acknowledges the formation of the African Union, which will consist of an executive, a central bank, an African Parliament and a court of justice, all of which will be seized with the responsibility of -
(a) promoting parliamentary democracy, while recognising human
rights; and
(b) developing the continent and promoting peace, security and
stability;
(2) congratulates the leaders and governments of Africa on the formation of the African Union; and
(3) commits itself to working to ensure that this organisation becomes an effective agent for democracy, peace and development in Africa.
Agreed to.
The House adjourned at 16:15. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS:
National Assembly and National Council of Provinces:
- The Speaker and the Chairperson:
(1) The Minister of Trade and Industry on 23 May 2001 submitted a
draft of the International Trade Administration Bill, 2001 as well
as the memorandum explaining the objects of the proposed
legislation, to the Speaker and the Chairperson in terms of Joint
Rule 159. The draft has been referred to the Portfolio Committee
on Trade and Industry and the Select Committee on Economic Affairs
by the Speaker and the Chairperson, respectively, in accordance
with Joint Rule 159(2).
(2) The Joint Tagging Mechanism (JTM) on 29 May 2001 in terms of
Joint Rule 160(3), classified the following Bills as section 75
Bills:
(i) Agricultural Research Amendment Bill [B 25 - 2001]
(National Assembly - sec 75).
(ii) Counterfeit Goods Amendment Bill [B 27 - 2001] (National
Assembly - sec 75).
(iii) Alexkor Limited Amendment Bill [B 29 - 2001] (National
Assembly - sec 75).
(3) The Joint Tagging Mechanism (JTM) on 29 May 2001 in terms of
Joint Rule 160(4), classified the following Bill as a section 76
Bill:
(i) Consumer Affairs (Unfair Business Practices) Amendment
Bill [B 28 - 2001] (National Council of Provinces - sec
76).
TABLINGS:
National Assembly and National Council of Provinces:
Papers:
- The Speaker and the Chairperson:
Report of the Auditor-General on the Financial Statements of Vote No 6
- Communications for 1999-2000 [RP 115-2000].
COMMITTEE REPORTS:
National Assembly:
-
Report of the Portfolio Committee on Trade and Industry on the Patents Amendment Bill [B 24 - 2001] (National Assembly - sec 75), dated 30 May 2001:
The Portfolio Committee on Trade and Industry, having considered the subject of the Patents Amendment Bill [B 24 - 2001] (National Assembly - sec 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill without amendment.
-
Report of the Portfolio Committee on Provincial and Local Government on Budget Vote 5: Provincial and Local Government, dated 29 May 2001:
The Portfolio Committee on Provincial and Local Government, having
considered Budget Vote 5: Provincial and Local Government, reports as
follows:
A. Introduction
1. The budget review of the Ministry and the Department of
Provincial and Local Government was undertaken on 8, 9, 15 and
16 May 2001.
2. Those who appeared before the Committee included Minister F S
Mufamadi, Director-General Mr Z Titus, Deputy Directors-
General Mr E Africa, Ms J Manche and Mr G Mokate, Chief
Financial Officer Mr C Clerihew, Chief Directors Mr R Botha,
Mr L Buys, Mr R Kruger and Mr T Seboka, Directors Mr D Powell
and Ms E Magwaza, and Deputy Director Ms K Harrison.
The National House of Traditional Leaders was represented by
its Chairperson, Inkosi M Mzimela, Deputy Chairperson, Morena
M Mopeli, Kgoshi M Malekane, Kgosi M Mashile, Kgosi S Suping,
and Administration Assistant Ms V Dyani-Maleka. The delegation
from the Municipal Infrastructure Investment Unit (MIIU)
consisted of the Chairperson of the Board, Ms M Hesketh, Board
Member Mr M Msiwa, CEO Ms G Moloi, and Project Manager Mr D
Leigland.
The Municipal Demarcation Board was represented by its
Chairperson, Dr M Sutcliffe, Board Member Mr V Mlokoti and
Manager Mr H Monare. Local Government Water and Related
Services SETA was represented by its Chairperson, Mr J
Mohlala, Deputy Chairperson Mr S Mqaka and Administrative
Manager Mr E Mnyakeng. The South African Local Government
Association (SALGA) was represented by its Chairperson, Father
S Mkhatshwa, Deputy Chairperson Ms H Jenkins, Treasurer Mr J
Mokoena, and CEO Mr T Mokwena.
3. A full-day workshop was held with the Department on 6 March
2001, at which the programmes, plans and strategies of the
Department were discussed. This served as a precursor to the
budget review.
4. The Committee notes with appreciation that, unlike previous
years, the reports from the Department and statutory bodies
were submitted in reasonably good time. Consistent with the
requirements of the Public Finance Management Act (PFMA), the
Department's report was much more user-friendly this year. It
was difficult to properly evaluate the reports of the majority
of the statutory bodies. It would be useful if the Department
would assist the statutory bodies to present appropriate
reports to Parliament that are more consistent with the
requirements of the PFMA. The Committee urges the statutory
bodies to present reports that, among other things, more
clearly set out how they have used the money allocated to them
during the previous financial year, what the outcomes of their
programmes and activities are, and how they plan to use the
money allocated to them for the present financial year.
B. Minister's Overview
1. The Minister provided an overview of the Ministry and
Department's programme for the year. He said that the
Department had been restructured and was now on a better
footing to fulfil its objectives and programmes. These revolve
around the need to "strengthen systems of good governance
without which sustainable socio-economic development is not
possible".
2. He explained that the Department's work would contribute to
advancing some of the key priorities identified in the
President's "State of the Nation" address. These include a job-
creating economic growth path, rural development and urban
renewal, and ensuring that the poor and disadvantaged are at
the centre of development.
3. "The inauguration of the new local government system has
brought us to the end of the beginning. What we are doing
today is likely to have an enduring effect on the shape of
governance in the lifetime of many generations to come", the
Minister said. He stressed that the challenge in the next two
to three years is to stabilise and consolidate the new system
of local government. He explained that a joint Local
Government and Finance MINMEC is to be held soon to consider
the fiscal framework for local government, review the system
of intergovernmental fiscal transfers, and strengthen local
government revenue-raising capabilities by reforming property
rates and tariffs. The Ministry and Treasury are "near to a
solution" on councillor allowances. SALGA was also being drawn
into the process. "It should be remembered that developmental
local government requires that capable people are attracted to
municipalities as councillors."
4. The Minister felt that Intergovernmental Relations (IGR) has to
be strengthened. As part of its concern to ensure this, the
Department had reviewed its operational strategies with the
aid of the IGR Audit Report. A chief directorate had been
established to focus on strengthening the Department's IGR
work.
5. The provincial system is an important part of the co-operative
governance system, said the Minister. This did not mean that
its boundaries were cast in stone. To some extent its
boundaries were the outcome of political negotiations. The
boundaries of the new municipalities, however, were determined
on the basis of developmental considerations. The
establishment of municipalities that straddled provincial
boundaries raised the question of whether some parts of the
provincial boundaries should be reviewed.
6. The Minister explained that the Department is to co-ordinate
the implementation of the Integrated Sustainable Rural
Development Strategy (ISRDS) and the Urban Renewal Strategy
(URS). Preparations to launch the ISRDS programme on 1 July is
fairly advanced.
7. The Minister explained that a Cabinet committee is attending to
the concerns of traditional leaders. A Bill would be
introduced in Parliament shortly, dealing with the powers and
functions of traditional leaders in local government. It would
not be an amendment to the Local Govenment: Municipal
Structures Act, but a separate Bill. In response to a
question, he said that he did not think the threat of
councillors in KwaZulu-Natal to stop fulfilling their
responsibilities from 20 May unless the concerns of
traditional leaders about their powers and functions in local
government were addressed, constituted a "crisis". The
concerns of traditional leaders cannot be addressed by the
Cabinet alone. The Committee and the public generally must
also have a say, he said.
8. The Minister acknowledged the valuable role played by, among
others, the Committee, SALGA, the Municipal Demarcation Board,
the Independent Electoral Commission and the Independent
Development Trust (IDT).
C. Restructuring of Department
1. The Department has finalised its restructuring. This
restructuring has been necessary because of the new mandate of
the Department, the need for greater integration and
effectiveness, the requirements of the PFMA and the need to be
more representative.
2. The Department now functions through three branches -
Governance and Development, Institutional Reform and Support,
and Support Services.
3. The Department has four programmes - Administration; Governance
and Development; Institutional Reform and Support; and
Auxiliary and Associated Services. Among the key
subprogrammes, activities and structures that fall under
Governance and Development are the following:
Intergovernmental Relations; Development and Planning;
Consolidated Municipal Infrastructure Programme; Local
Economic Development; Social Plan Fund; and the Municipal
Infrastructure Investment Unit.
Under Institutional Reform and Support are to be found the
following: SALGA and related issues; local government
"equitable share"; Local Government Transition Fund;
Institutional Capacity-building and Support; Performance
Management and Municipal Finance; Municipal Systems
Improvement Programme; and Disaster Management. Under
Auxiliary and Associated Services the Department provides
support to the National House of Traditional Leaders, the
Municipal Demarcation Board, and Public Sectoral Training
Authority. The Commission for the Promotion and Protection of
the Rights of Cultural, Religious and Linguistic Communities
falls under this programme as well.
4. The Committee feels that compared to last year the Department
has made significant improvements in clarifying its
structures, and there is a better relationship between the
Department's structures and objectives. The Committee feels
that more should be done to appoint women at senior management
level.
The Committee is also interested in what the Department is
doing to employ disabled people. The Committee feels that it
would be appropriate for the Department to provide a breakdown
of the category "Blacks" employed in the Department so that a
better sense of representivity can be arrived at.
While representivity is important, the Committee feels that
civil servants, generally, whatever their background, have to
seek to be more productive, given the challenges of
transformation confronting our country.
D. Overview of Budget
1. R4 279 165 000 has been allocated to the Ministry and
Department of Provincial and Local Government for this
financial year. This represents an increase of 6,3% in real
terms compared to last year. Over the next two years the
Ministry and Department's budget is expected to increase by
29,2% in terms of the MTEF.
2. There has been an increase in local government's "equitable
share" from R2 330 000 000 last year to R2 618 000 000 this
year. This is a 12,3% increase in real terms. Over the MTEF
period there will be a significant increase of 52,4%. If the
other grants are added to the "equitable share", the total
allocated to local government is R6 507 000 000. This is a
6,3% increase in real terms over last year, and over the next
two years of the MTEF period the increase will average 10,3%
per annum.
3. Overall, the majority in the Committee feels that the
Department made reasonably good use of the budget allocated to
it for the last financial year. There has, however, been
underspending in certain areas. The explanations from the
Department seem reasonable in most cases.
The most significant case of underspending is the R31,9
million in respect of CMIP funds. This was due mainly to the
expected cash-flow on various projects not materialising
through delays in project approvals and project implementation
resulting from the municipal elections, redemarcation and
municipal restructuring. R23,7 million of LED funds was not
spent because of delays occasioned by the elections and
financial discipline requirements. The Department's
underspending on personnel was because it could not fill
vacancies until its restructuring process was finalised.
Project viability funds of R2,4 million was not paid to
consultants due to a lack of adequate reporting.
The Commmittee notes that the budget for the Commission for
the Promotion and Protection of the Rights of Cultural,
Religious and Linguistic Communities has increased from R3,5
million to R6,7 million. While recognising the need for the
fullest consultation, the Committee feels that the Commission
should be launched within the next year. Overall, the
Committee feels, however, that it needs to improve its
capacity to evaluate the outcomes of the Department's
expenditures.
4. The Committee is aware that allocating more money does not
necessarily mean better outcomes, and that departments have to
have appropriate capacity to productively use increased funds.
However, given the magnitude of the local government
transformation, the responsibilities of co-ordinating the
ISRDS and URS, and the need to consolidate IGR, the majority
of the Committee feels that consideration should be given to
significantly increasing the Department's budget in future
years.
E. Legislative Programme
1. The Department is to introduce the following legislation this
year:
(a) Traditional Authorities: Powers and Functions Bill.
(b) Disaster Management Bill.
(c) Remuneration of Traditional Office Bearers Amendment Bill.
(d) Local Government: Property Rating Bill.
(e) Repeal of Outdated Local Government Legislation Bill.
(f) Commission for the Promotion and Protection of the Rights
of Cultural, Religious and Linguistic Communities Bill.
(g) Volkstaat Council Bill.
(h) Possible legislation emanating from the White Paper on
Traditional Leadership and Institutions.
F. Intergovernmental Relations (IGR)
1. The consolidation and strengthening of IGR and the system of co-
operative governance is the key function of the Department.
2. The Department feels that it is premature to have omnibus
legislation on IGR at this stage. In any case, existing
legislation such as the Municipal Systems Act, the
Intergovernmental Fiscal Relations Act and other pieces of
legislation introduced after 1994 facilitate IGR.
3. The Committee feels that a key test of the IGR system is the
extent to which there is an improvement in service delivery
and development. While co-ordination between government
departments and between the spheres of government has
improved, there is still a long way to go. The Committee feels
that there needs to be more specific indicators by which
improvements in the IGR can be measured. The majority in the
Committee welcomes the initiatives to explore the possibility
of including municipal employees as part of the country's
civil service.
G. Local Government Transformation
1. The Department set out its local government transformation
programme. The next two years have been identified as the
"stabilisation phase". In March 2001, R100 million was
allocated to municipalities from the Local Government
Transition Fund. Key strategic areas of support the Department
is providing to municipalities include financial planning and
management, human resource reorganisation, information
technology, development and service delivery, and governance.
2. The Department is also working on a review of the local
government financial system. This includes the fiscal powers
and functions of District and Local Municipalities, funding
free basic services and the equitable share, funding of
District Municipalities, property rates, and other issues.
3. Together with SALGA, the Department has organised capacity-
building programmes and workshops for councillors, municipal
managers and treasurers. About 7 500 councillors and officials
have been trained.
4. The Department has also established Planning and Implementation
Management Support Centres (PIMS) in 14 district
municipalities. The Department is paying special attention to
those municipalities that have been established in the areas
where previously there were no municipalities. A special
support programme for metropolitan municipalities, especially
the two new ones, and "aspirant metros" is under way.
5. The Committee recognises the magnitude of the local government
transformation and is acutely aware of the challenges in
implementing the new system of local government. The Committee
feels that the success of the new system of local government
depends crucially on an effective, phased programme of
implementation that secures the maximum co-operation of all
the key stakeholders, including national and provincial
governments, SALGA, municipalities, public representatives in
all three spheres, the Municipal Demarcation Board, trade
unions, the private sector, traditional leaders, and a wide
range of civil society organisations.
The majority in the Committee feels that it could take up to
10 years to properly implement the new system of local
government. The Committee would like to pursue with the
Department the fine-tuning and development of its local
government transformation programme. The Committee notes that
the Local Government: Municipal Systems Act provides for the
phased implementation of aspects of the new system based on a
municipality's capacity, resources and funding. The Committee
would like to pursue further with the Department how aspects
of that Act are being implemented.
6. The Committee feels that the Department's support to
municipalities established in areas where previously there
were no municipalities, should be strengthened. There also
needs to be greater clarity about the position of "aspirant
metros".
7. Key to the success of the new local government system is a
fundamental review of the local government financial system -
and the Committee urges that, the difficulties
notwithstanding, this process be speeded up. The majority in
the Committee feels that serious consideration should be given
to paying councillors' salaries and allowances from the
national fiscus. The Committee is acutely aware of the
constraints on the national fiscus, but believes that
consideration should also be given to paying full-time
councillors salaries that take into account the salaries of
MPs and MPLs, where possible. The Committee is also concerned
about the huge gap between the salaries of councillors and the
allowances of part-time councillors, especially where the
latter are ward councillors.
The Committee understands that all these issues cannot be
fully addressed immediately, but urges that consideration be
given to them in the process of finalising the next national
budget.
8. The Committee suggests that the Department considers setting up
a "Help-Desk" for municipalities seeking advice on aspects of
the implementation of the new local government system. This
could be done in consultation with SALGA. The "Help-Desk"
could also assist municipalities to avoid incurring expenses
through the use of specialist lawyers or consultants. Together
with SALGA, the Department should also consider compiling a
register of consultants and provide advice on the quality of
consultants work and the fees paid to them.
9. The Committee is to receive regular briefings from the
Department and other stakeholders on the local government
transformation, and will be undertaking a study tour of
municipalities in the last quarter of this year to evaluate
progress in the implementation of the transformation.
H. Free Basic Municipal Services
1. The Committee welcomes the government's commitment to providing
free basic water and electricity services to the poor. It
appreciates the many financial and other challenges in
implementing this commitment, especially in respect of
electricity, and that its implementation may have to be phased
in. The Committee urges, however, that those municipalities
that are able to do so should implement the free provision of
basic services from 1 July this year.
2. The Committee will be arranging regular briefings from the
relevant departments and other stakeholders on progress with
the provision of free basic services.
I. Consolidated Municipal Infrastructure Programme (CMIP), Local
Economic Development (LED) Fund and Social Plan Fund
1. From its inception in 1996 until March this year, the CMIP has
allocated R3,3 billion to 1 989 projects. For this financial
year, the CMIP has been allocated just over R994 million for
capital transfers.
2. The LED Fund has allocated R111 million to 120 projects up to
April 2001. Until December 2000, the LED Fund created 1 817
full-time and 1 813 part-time jobs.
3. The Social Plan Fund, which was established after the 1998 Jobs
Summit, provides funds to municipalities to undertake local
economic regeneration studies. Almost 50 studies have been
completed to date.
4. The Committee feels that these three projects can make a
valuable contribution to the government's economic growth, job
creation and development goals. The Committee welcomes the
increasing rural orientation of the CMIP and the impact it is
making. It is less sure about the effect of the LED and Social
Plan subprogrammes, and would like to pursue its concerns with
the Department regarding this. The Committee welcomes the
Department's efforts to integrate these three subprogrammes.
J. Integrated Sustainable Rural Development Strategy (ISRDS) and
Urban Renewal Strategy (URS)
1. The Department explained that theirs is a co-ordinating role in
ensuring the implementation of the ISRDS and URS. The
Department is to set up a special unit to take responsibility
for this co-ordinating role. The Department is working closely
with the IDT, which is the support arm for the implementation
of the ISRDS. The implementation of the programmes depends on
the co-operation of several departments, all three spheres of
government, the IDT, and a range of other stakeholders.
2. While the vision, strategies and plans of the ISRDS are fairly
developed, the URS is lagging somewhat behind. The ISRDS is a
10-year phased implementation plan. It will be launched not
later than 1 July 2001. 13 nodes have already been identified
by the President and there will be 30 nodes by the end of this
year. It is estimated that 10 million people will benefit from
the ISRDS.
3. The Committee is enthusiastic about the ISRDS and URS, and
commits itself to contributing to its implementation in
whatever way it can. It feels that MPs living or doing
political work in the nodal areas should be drawn in to assist
with monitoring and implementing the programmes. The Committee
feels that these programmes have significant potential to
contribute to consolidating IGR and the system of co-operative
governance.
K. Traditional Leadership and Institutions
1. A Bill on the powers and functions of traditional leaders in
local government will be introduced in Parliament shortly. The
Ministry and Department are consulting with traditional
leaders and a range of other stakeholders before finalising
the Bill.
2. A Green Paper and a White Paper on Traditional Leadership and
Institutions will be processed this year.
3. While the Committee understands the difficulties, it feels that
the Ministry's and Department's work on Traditional Leadership
and Institutions should be speeded up.
L. South African Local Government Association (SALGA)
1. SALGA had just elected a new leadership at its conference held
early in April 2001. It also appointed a new CEO in the second
half of last year. SALGA is undergoing an internal
restructuring process. With the local government elections
over, a new leadership elected and a measure of restructuring
undertaken, SALGA is developing a programme to meet the
challenges of implementing the new system of local government.
2. Aspects of SALGA's programme also revolve around the need to
enhance the quality of service to its members; create greater
cohesion amongst its structures; develop a better relationship
with other organisations relevant to local government;
strengthen its capacity-building strategies; and improve its
human resource management.
3. SALGA has been allocated R15 million for the current financial
year. According to a study commissioned, SALGA explained that
it would need R9,2 million just to respond to the impact of
the local government transition on its work.
4. The Committee feels that SALGA is indispensable to ensuring the
success of the new system of local government. While the
Committee appreciates the difficulties SALGA has had to
contend with over the past year, it feels that SALGA needs to
be more decisive and effective. There is a need to also
improve SALGA's involvement in the parliamentary process. The
Committee notes that the report submitted to it is not
adequate to properly evaluate SALGA's use of its budget during
the past financial year and how it intends to use its budget
during the current financial year. The Committee urges that an
appropriate report be submitted next year. The Committee will
have a meeting with SALGA within six months to discuss matters
of common concern.
M. National House of Traditional Leaders
1. Much of the past year of the House of Traditional Leaders was
taken up by negotiations through the Coalition of Traditional
Leaders with the government on the powers and functions of
traditional leaders in local government. Inkosi Mzimela
expressed the deep disappointment of the House in the
government's failure to meet the demands of traditional
leaders. He stressed the need for constitutional amendments,
not just new legislation, to meet the concerns of traditional
leaders.
2. The House held capacity-building workshops, participated in the
Vodacom Foundation rural development and BMW social
programmes, and has become more active in the HIV/AIDS
campaign.
3. The chairperson and deputy chairperson of the House have become
full-time members as from 1 April this year.
4. The Committee feels that the House should continue its
negotiations with the government on its concerns about the
powers and functions of traditional leaders in local
government. The Committee will also give attention to the
concerns of traditional leaders once the pending Bill is
introduced in Parliament.
5. The Committee feels that the report submitted by the House is
not adequate. It is difficult for the Committee to evaluate
how the money allocated to the House during the past financial
year was spent and what the House plans to do with the money
allocated to it for this financial year. As the Department
takes responsibility for the budget of the House, the
Committee requests it to assist the House to provide an
appropriate report to Parliament next year. The Committee will
organise a meeting with the House within six months to discuss
matters of common concern.
N. Municipal Demarcation Board
1. The Board functions with one full-time and eight part-time
members. Its budget has been reduced from R24,8 million to
R12,2 million and will continue to decrease over the next two
years.
2. With the initial redemarcation of boundaries completed, the
Board's main work includes recommendations to the Minister and
MECs on authorisation of powers and functions; assessments of
the capacity of municipalities to exercise powers and
functions; the alignment of functional service boundaries with
municipal boundaries; policy work on "aspirant metros"; a
review of municipal and ward boundaries where necessary; and
to further develop a local government data base.
3. The Committee congratulates the Board on the way it has
fulfilled its functions, especially in view of the constraints
of time and resources within which it operated. The Board is
particularly commended for its very productive use of its
limited resources.
O. Local Government Water and Related Services SETA
1. This SETA replaces the Local Government Education and Training
Board. It was established on 20 March 2000 by the Minister of
Labour in terms of the Skills Development Act. The last year
was spent establishing structures, appointing staff and
developing policies.
2. The SETA has identified both short-term and long-term strategic
priorities, developed sector skills business plans, workplace
skills plans and appointed skills development facilitators.
3. As at 31 December 2000, 7 600 people had participated in its
training sessions. About 77% of them had successfully
completed the programmes. SETA evaluates programmes of other
organisations offering training, including SALGA. The SETA is
also compiling a database of consultants and trainers for
municipalities.
4. The SETA is responsible for two pilot projects - the R4 million
DANIDA (Danish Government) financial management learnership
project and the Norwegian government-funded R10 million
"Project Viability" financial management project.
5. By December 2000 the SETA had spent R9,6 million of the
Norwegian funds. The R9 million that was allocated by the
Department to the Training Board during the 1999-2000
financial year, will be utilised during this financial year.
6. The Committee recognises that the SETA has just been
established and has had to face many challenges. The Committee
feels, however, that capacity-building and training are
crucial to the success of the new system of local government
and that the SETA has a more important role to play than ever.
The Committee feels that there should be greater co-ordination
and integration of the capacity-building and training
programmes of the different organisations which provide these
programmes within the local government sphere.
The report submitted by the SETA to Parliament is difficult to
evaluate, especially in terms of "value-for- money" criteria.
The Committee expects a more appropriate report from the SETA
next year, consistent with the requirements of the PFMA. The
Committee will also organise a meeting with the SETA and hold
a special briefing on training and capacity-building in local
government with a range of relevant stakeholders within the
next six months.
P. Municipal Infrastructure Investment Unit (MIIU)
1. The MIIU was established in 1997 for a five-year term to
"optimise private sector investment in local authority
services, on a basis that is sustainable for both local
authorities and at national level". The MIIU has to "assist
the development of an established market containing informed
local authority clients, private sector advisers, and private
sector investors and services providers".
2. The service sectors within which MIIU operates, are primarily
essential services such as water, sanitation and solid waste.
Other sectors include transport, power generation and
distribution, and information technology.
3. MIIU offers technical and financial assistance to
municipalities. This usually involves engaging consultants to
assess the feasibility of various municipal service
partnerships. MIIU usually shares the cost of the work with
the municipality.
4. MIIU has developed a comprehensive three-year strategy and
seeks to be more active in the local government transformation
process.
5. MIIU is funded through the national fiscus, donor community,
and income from interest. It receives R6 million from the
national budget, and its income from all sources for this
financial year will be R10,6 million.
6. The Committee welcomes the continuation of MIIU beyond its
original five-year mandate and is interested in its three-year
strategy. The Committee would like to respond more fully to
MIIU's work and will seek another opportunity to do so. The
Committee would like to see the work of MIIU located more
firmly within the context of the overall local government
transformation. While MIIU is primarily concerned with drawing
in the private sector, it might also be useful for it to have
a better sense of public/public and other partnerships as
well.
The Committee would like to organise a meeting on municipal
service partnerships with a range of stakeholders, including
MIIU, fairly soon. The tentative proposal is late June this
year.
Q. Conclusion
1. It is clear that one-off annual budget hearings are not
adequate to properly evaluate how budgets are being used. The
PFMA provides the framework for a much more rigorous scrutiny
of the spending of public money. The Committee has to explore
ways of taking the issues raised in the budget hearings
further through more regular exchanges with the Department and
statutory bodies which fall within its portfolio.
2. The Committee needs to enhance its capacity to scrutinise
budgets. It also needs technical support. Negotiations are
under way to secure the services of a researcher for the
Committee. The Committee would like, however, to acknowledge
the assistance of Ms D Hene in the preparation of this Report.
3. The Committee should seek to send representatives to the
hearings of the Portfolio Committee on Finance on the Division
of Revenue Bill.
4. The reports from some of the statutory bodies were not
satisfactory. The Committee will consult with the Department
and other relevant parties on what can be done to improve the
quality of reporting to Parliament with regard to the budget.
5. Overall, the Committee feels that the budget hearings were much
more focused and productive this year than in previous years,
but there is still a lot of room for improvement.
6. The Committee wishes to express its appreciation to the
Minister, the Department and statutory bodies for their
participation in the hearings.