National Assembly - 13 December 2005
TUESDAY, 13 DECEMBER 2005 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 10:02.
The Deputy 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.
UPGRADING OF AIR CONDITIONING SYSTEM
(Announcement)
The DEPUTY SPEAKER: Hon members, before we proceed with today’s business, I wish to bring to members’ attention the fact that the air conditioning system is being upgraded, and that this process will be completed by the end of January next year.
The contractors have now suspended their work to enable the House to meet today and tomorrow. The entire public and press gallery facilities will however not be able to be used for the two days, as the construction area is blocked off with scaffolding which could pose a health and safety hazard.
Arrangements have been made for members of the public to be accommodated in the Old Assembly Chamber and Committee Room E249. Proceedings are being relayed via our in-house feed to these two venues. The press will utilise the seats to the left of my Chair.
APPOINTMENT OF CHIEF JUSTICE LANGA AS CHANCELLOR OF NELSON MANDELA
METROPOLITAN UNIVERSITY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move without notice:
That the House –
1) notes that Chief Justice Pius Langa has been appointed the first
chancellor of the Nelson Mandela Metropolitan University in Port
Elizabeth; and
2) conveys its heartfelt congratulations to Chief Justice Langa and
wishes him every success with his appointment and commends the
university council on an inspired choice. Agreed to. AWARDING OF MERIT AWARD OF OFFICER OF THE ORDER OF THE LEGION OF HONOUR ON
PROF KADER ASMAL
(Draft Resolution)
The DEPUTYCHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move without notice:
That the House -
1) notes that -
a) President Jacques Chirac of France has bestowed the highest
award for merit, the rank of Officer of the Order of the
Legion of Honour, on the hon Prof Kader Asmal, MP; and
b) in bestowing this honour on Prof Asmal President Chirac
stated that it -
i) honours a great figure of the struggle against
apartheid, who was subsequently given high
responsibilities in South Africa;
(ii) rewards the tenacity with which he pursued the cause
of human rights;
(iii) rewards also the vital role that he has played, in
conjunction with the French representatives at Unesco,
to bring about the successful conclusion of the
Convention on Cultural Diversity; and
iv) rewards the quality of the services he has rendered to
France; and
(2) resolves to congratulate Prof Asmal on receiving this honour.
The DEPUTY SPEAKER: Congratulations, hon member.
Agreed to.
AWARDING OF PRINCE CLAUS AWARD TO JONATHAN SHAPIRO
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move without notice:
That the House -
1) notes that –
(a) Jonathan Shapiro, popularly known as Zapiro, won the Prince
Claus Award in the Social and Cultural category in Amsterdam on
Wednesday, 7 December 2005; and
(b) Zapiro also teaches young cartoonists in Cape Town thus helping
in the development of a new generation of cartoonists who are
motivated to continue the satirical traditions;
(2) recalls that his satire highlights social and political issues and challenges dogma;
3) recognises that this is a further recognition by the international
community of the high quality of South African cultural work;
4) applauds Zapiro’s great contribution to our country’s artistic and
cultural life; and
5) congratulates Jonathan Shapiro on winning the award and wishes him
good luck in his work.
Agreed to.
AWARDING OF NOBEL PEACE PRIZE TO MOHAMED EL BARADEI AND IAEA
(Draft Resolution)
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move without notice:
That the House –
(1) notes that –
(a) last Saturday, 10 December 2005, Mohamed EI Baradei and
the International Atomic Energy Agency (IAEA) were jointly
awarded the Nobel Peace Prize; and
(b) this award is in recognition of the work they continue to
do to halt the spread of nuclear weapons;
(2) recognises that the award will serve as a further boost in the efforts of the world peace movement to create a better and a safer world; and
(3) congratulates the International Atomic Energy Agency (IAEA) and Mohamed EI Baradei on winning the Nobel Peace Prize award and wishes them well in their good work.
Agreed to.
CONCERNS AROUND DOHA AGREEMENT
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move without notice:
That the House –
1) notes with concern the lack of progress, including reluctance on
the part of the developed countries to ensure progress, in the
current round of negotiations on the Doha Work Programme in
Geneva;
2) reiterates the urgency to meet the commitment of the Doha mandate
of placing the needs and interests of developing countries and, in
particular, least developed countries, at the heart of the WTO
Work Programme;
3) believes that a development-centred outcome in the negotiations
will engender a more viable, equitable and durable multilateral
trading system that would contribute to the attainment of the
Millennium Development Goals by our countries;
4) resolves to support unequivocally the positions that have been
adopted in the Cairo Declaration and the road map on the Doha Work
Programme; and
5) calls upon parliaments throughout the world to ensure their
participation in the 6th WTO Ministerial Conference in Hong Kong
in December 2005 and to campaign for fair global trade so as to
protect the development rights of poorer countries.
Agreed to.
DEATH OF SOPHIE THOKO MGCINA
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: This is the last one, I assure you, Madam Speaker. I move without notice:
That the House –
(1) notes –
(a) with profound sadness and grief, the untimely death of
Sophie Thoko Mgcina on Friday, 2 December 2005; and
(b) that this doyenne, stalwart and cultural activist had a
rich career spanning more than three decades in musicals,
film, television and theatre;
(2) recalls that Sophie Mgcina had her first taste of international fame in 1960 playing Petal in the London run of King Kong;
(3) remembers that she received many awards, amongst them -
(a) the Obie Award for best achievement in 1981;
(b) from President Thabo Mbeki the order of Ikhamanga
(silver), the highest form of recognition for excellence in
the field of arts, culture and sport;
(c) the Lifetime Achievement Award from the Arts and Culture
Trust; and
(d) in November this year, an award at The night of the 50s by
the Minister of Arts and Culture to honour and celebrate the
luminaries of the era; and
(4) conveys its condolences to her family, friends and to the broader arts and culture community of our country.
Agreed to.
HOURS OF SITTING OF HOUSE
(Draft Resolution)
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, we move the motion as it stands printed on the Order Paper in the name of the Chief Whip of the Majority Paper, as follows:
That the House, notwithstanding Rule 23(2) which stipulates hours of sitting, and noting the agreement by the Joint Programme Committee on the 16 November 2005 for the House to sit in the morning on 13 December 2005, condones the starting time of 10:00 for today’s sitting.
Agreed to.
ANC HOUSING DELIVERY
(Member’s Statement)
Mnr J D ARENDSE (ANC): Die ANC-regering streef voortdurend daarna om te verseker dat die regte van mense om te kan kies waar hulle woon, geskikte huisvesting te ontvang en hul gesinne in veiligheid en sekuriteit op te voed, gerespekteer word. Meer as ‘n duisend families in De Doorns het in haglike omstandighede gewoon - met geen toegang tot water en toiletgeriewe nie. Hierdie families het geen toegang gehad tot dienste wat deur ander gemeenskappe ontvang word nie. As gevolg van inisiatiewe van die Minister van Behuising in die Wes- Kaap om die lewe van mense te verbeter, het die Breedevallei Munisipaliteit ‘n proses begin om geskikte huise te bou vir hierdie gemeenskappe in De Doorns.
Eenhonderd families is alreeds gehuisves in areas met toegang tot water en sanitasiegeriewe. Die tweede fase beoog om meer as ‘n duisend families teen die einde van Maart 2006 in areas te huisves wat toegang het tot water en sanitasie.
Die ANC prys die Wes-Kaapse regering en die munisipaliteit vir hul goeie werk en wil ons mense aanmoedig om saam met die regering te werk om dienslewering te versnel. Ek dank u. [Applous.] (Translation of Afrikaans member’s statement follows.)
[Mr J D ARENDSE (ANC): The ANC government is always striving to ensure that the rights of people to choose where to live, to receive adequate housing and to rear their children in safety and security, are respected.
More than a thousand families in De Doorns lived in appalling conditions – with no access to water and toilet facilities. These families had no access to services that other communities are receiving. As a consequence of initiatives by the Minister of Housing in the Western Cape to improve the lives of people, the Breede Valley Municipality started a process of constructing adequate housing for these communities in De Doorns.
One hundred families have already been accommodated in areas with access to water and sanitation facilities. The second phase aims to accommodate more than a thousand families, by the end of March 2006, in areas with access to water and sanitation.
The ANC praises the Western Cape government and the municipality for their good work and wants to encourage people to work with the government to accelerate service delivery. Thank you. [Applause.]]
FUEL CRISIS IN SOUTH AFRICA
(Member’s Statement)
Adv H C SCHMIDT (DA): Madam Deputy Speaker, the South African public is not interested in excuses being offered for the fuel crisis at filling stations around the country and at the Cape Town International Airport. You cannot fill your tank with excuses.
There has clearly been a lack of planning, which contributed to this chaos, and the DA believes someone should stand up and take the blame. The failure of long-term planning, efficiency of contingency planning and effectiveness of implementation strategies are contributing to the threatening crisis.
The Minister of Minerals and Energy should investigate the circumstances which have led to this fuel shortage. The Minister is the person with a political responsibility for fuel supply in South Africa. The conversion to cleaner fuel is long overdue as South Africa is one of the last countries in the world to discontinue the use of leaded petrol for environmental and health reasons. The conversion process is clearly lacking, regarding effective contingency planning in the event of the conversion process not proceeding as planned.
The Minister should investigate the following: Firstly, was any planning done to ensure that sufficient reserve stocks would be available for this time of the year, while refineries were being upgraded to meet the 2006 requirements for cleaner fuel?
Secondly, it is reported that the fuel farm at Cape Town International Airport ran empty at the end of the week and that stocks were ordered to make up for the shortfall. Who was responsible for monitoring the fuel level at the fuel farm? Why were no warnings issued to incoming planes about the pending fuel shortage at the airport?
Thirdly, should the current implementation plan for unleaded fuels lead to fuel shortages at filling stations and airports, the Minister should investigate the possibility of phasing in the conversion to unleaded fuel and low sulphur diesel gradually in order to ensure that the South African public, airlines and other forms of transport have a continued supply of fuel, especially during the festive season.
Fuel shortages, whether at filling stations or at the airport, create a sort of ripple effect that our economy and our tourism industry can hardly afford. Someone, Minister, messed up and they need to own up before this happens again. I thank you, Madam Deputy Speaker. [Applause.]
CONCERN OVER EFFECT OF FUEL SHORTAGE AT CAPE TOWN INTERNATIONAL AIRPORT
(Member’s Statement)
Mr E J LUCAS (IFP): Madam Deputy Speaker, the IFP is concerned about the effect of fuel shortage at Cape Town International Airport. It is not acceptable that at this point in time we are made to endure such inconvenience. Another alarming issue was the inferior mix of aviation fuel, which was not up to the required standard and the IFP recognises the extent of danger that could be caused by this.
Motorists in the Western Cape have also suffered from a shortage of unleaded fuel. This is unacceptable and the petrol companies owe the public an explanation. We note that it coincided with the decrease in the price of fuel. We hope that something will be done about this situation as a matter of urgency. Thank you, Madam Deputy Speaker.
STEPS TOWARDS PROVISION OF QUALITY HEALTH CARE
(Member’s Statement)
Mrs M M MALUMISE (ANC): Madam Deputy Speaker, this is a statement on partnership. The ANC-led government can provide resources and introduce quality health care as well as a comprehensive plan to fight HIV/Aids. But for this programme to succeed, it requires public servants who serve people with respect and efficiency, and it requires active citizenship and a spirit of responsibility and voluntarism amongst all of us.
In realising this partnership between government and the people, Mrs Mbeki, with two retired nurses, Olive Mpahlwa and Constance Manzini, as well as a Ugandan doctor, Josiah Gizito, have, like many in our country, taken it upon themselves to help people and children who are infected and affected by HIV/Aids. They have set up a hospice in Butterworth, which caters for about 150 Aids patients and 100 Aids orphans in the community.
The ANC commends the sterling work done by the four and further calls upon all our people, including doctors, to emulate this shining example to ensure the provision of health care services in rural areas. I thank you, Madam Deputy Speaker. [Applause.]
INSTABILITY IN BURMA
(Member’s Statement)
Mrs C DUDLEY (ACDP): Madam Deputy Speaker, in view of the ongoing critical situation in Burma, the ACDP calls on the President and the Minister of Foreign Affairs to earnestly attempt to bring the issue of Burma to the agenda of the UN Security Council.
The ruling military regime in Burma poses a serious and growing threat to regional security and stability. The regime’s destruction of over 2 500 villages in eastern Burma; the forced displacement of over one million people; the continuing refugee situation in neighbouring Thailand, India and Bangladesh; and the regime’s involvement in the drugs trade, its growing militarisation and the recent bombings in the capital, Rangoon, make Burma a failed state which is destabilising the rest of South-East Asia.
Burma spends over 40% of its annual budget on the military and less than 2% on health and education combined. At least 75% of its population live below the poverty line and one in three children below the age of five suffers from malnutrition.
Burma has the highest number of forcibly conscripted child soldiers, that is over 70 000 children in the Burma army. This army is carrying out widespread systematic rape, forced labour, forced relocation, destruction of villages, killings and other crimes against humanity in areas populated by ethnic nationalities such as the Karen, Chin and Shan.
Whilst the UN Security Council is not authorised to act on country-based human rights abuses, it is mandated to act in situations where a country poses a threat to international peace and stability, in terms of Article 7 of the UN Charter. Special appointments by the UN have been unsuccessful as the regime has been unco-operative and the junta has refused to work with them.
The ACDP believes that, for South Africa to be silent on the suffering and abusive circumstances in Burma will be a great shame and tragedy. I thank you, Madam Deputy Speaker.
FUEL CRISIS
(Member’s Statement)
Mnr W D SPIES (VF Plus): Agbare Adjunkspeaker, dit is totaal onuithoudbaar dat by Kaapstad-lughawe en ander lughawens in Suid-Afrika binnelandse en internasionale vlugte vertraag is omdat brandstoftekorte ondervind word. Vlugte moes selfs oor Upington gaan ten einde brandstof te kan kry.
Die gevolge hiervan is dat duisende passasiers belangrike aansluitingsvlugte na die buiteland gemis het of ander afsprake moes kanselleer. Die skade wat dit Suid-Afrika se beeld by toeriste en buitelandse sakemanne berokken, is onherstelbaar. Selfs tydens die hoogtepunt van die energiekrisis van die laat 1970s het daar nooit sulke vertragings plaasgevind nie.
Die eenvoudige vraag is of niemand betyds kon voorsien dat die oorskakelings wat by olieraffinaderye gedoen moes word voor 1 Januarie 2006 brandstoftekorte kon veroorsaak nie. Dit moes sekerlik moontlik gewees het om te kon beplan vir so ‘n situasie deur byvoorbeeld die oorskakeling van raffinaderye te skeduleer oor ‘n tydperk.
Dit is ook kommerwekkend dat die omskakelingsproses geensins vanjaar in hierdie Huis of in die tersaaklike komitee bespreek is nie. Hoewel die saak wel geskeduleer was vir bespreking vroeër vanjaar by die portefeuljekomitee, is die vergadering gekanselleer as gevolg van die komitee se oorvol program wat gepaard gegaan het met die oorhaastige deurvoer van die Diamonds Amendment Bill, die Precious Metals Bill en die National Energy Regulator Bill.
Dit is baie jammer dat ‘n uiters belangrike saak soos die implementering en omskakeling na skoner brandsof nooit in die portefeuljekomitee bespreek is nie. Dit kom voor asof die ANC se transformasiedryf groter was as sy verantwoordelikheid ten opsigte van die bestuur van ‘n radikale proses soos die uitfasering van looddraende brandstof.
Hoewel die VF Plus die inwerkingstelling van skoner brandstof ondersteun, getuig die manier waarop dit ingefaseer is van hopelose wanbestuur. Baie dankie. (Translation of Afrikaans member’s statement follows.)
[Mr W D SPIES (FF Plus): Hon Deputy Speaker, it is totally untenable that at Cape Town International Airport and other airports in South Africa, domestic and international flights have been delayed because of a shortage of aviation fuel. Flights even had to be rerouted to Upington in order to take on fuel.
As a result thousands of passengers missed important international connections or had to cancel other appointments. The damage done to South Africa’s image among tourists and foreign businessmen is irreparable. Even at the height of the oil crisis of the late 1970’s, there were never such delays.
The simple question is whether no one could have foreseen timeously that the switchover that had to be done by the oil refineries before 1 January 2006 could lead to fuel shortages. Surely it could have been possible to plan for such an eventuality by, for instance, scheduling the switchover of refineries over a period of time.
It is also a cause for concern that the switchover process was not discussed at all this year in this House or in the relevant committee. Although the matter was indeed scheduled for discussion by the portfolio committee earlier this year, that meeting was cancelled due to the overcrowded programme of the committee that resulted from the fasty piloting of the Diamonds Amendment Bill, the Precious Metals Bill and the National Energy Regulator Bill through Parliament.
It is a great pity that an extremely important matter such as the implementation of and changeover to cleaner fuel, was never discussed in the portfolio committee. It would appear that the transformation drive by the ANC exceeded their responsibility with regard to the management of such a radical process as the phasing out of leaded fuel.
Although the FF Plus supports the introduction of cleaner fuel, the manner in which this has been phased in attests to hopeless mismanagement. Thank you.]
The DEPUTY SPEAKER: Before we proceed, hon members, I just want to point out that there are just too many meetings taking place in the House. We do encourage meetings because we want to have people work together even during recess, but this is the wrong venue. You could have those meetings comfortably in your offices over a cup of tea, and not here.
OPENING OF MAROPENG VISITORS CENTRE
(Member’s Statement)
Ms J L FUBBS(ANC): Madam Deputy Speaker, hon members, the opening of the Maropeng Visitors Centre in Gauteng once again recognises South Africa as the birthplace of humankind. We, the people of South Africa, have been truly blessed to be the custodians of the cradle of humankind.
The visitors’ centre at the Cradle of Humankind is indeed a fitting tribute to the world’s biggest archaeological library. The heritage site embraces Sterkfontein Caves, Coopers B, Swartkrans, Drimolen and Gondolin, where over 35% of the world’s humanoid fossils were found.
The Gauteng province-based Maropeng Visitors Centre which, among other unique features, boasts an underground lake and interactive exhibits, was recently opened by President Thabo Mbeki. As President Mbeki said, Maropeng Visitors Centre is our own humble contribution to record for posterity the story of evolutionary human biology.
For years, white supremacist regimes defied the history and the significance of this site. Now, thanks to an ANC government, South Africans can proudly claim the custodianship of heritage sites such as this one. I thank you, Madam Deputy Speaker. [Applause.]
NEED TO RECONSIDER PROPORTIONAL REPRESENTATION
(Member’s Statement)
Mr M T LIKOTSI (PAC): Madam Deputy Speaker, the recent and current political pitfalls in our country are an acid test for Cabinet to rethink the issue of proportional representation in all forums of governance, including local government, mayoral executive committees, the Municipal Demarcation Board and Salga; and as it is applied in some forums in Parliament such as the Joint Programme Committee, Rules Committee, Chief Whips Forum etc.
The daily cries of our communities regarding employment and BEE opportunities may not be ignored and fall on deaf ears. In a democratic dispensation, all citizens are expected to be treated equally. And South Africa is not immune to that. The resources of our country must be equitably distributed to all its citizens, and not be centred in the hands of a few individuals who become instant billionaires in a country of extremely poor people. I thank you, Madam Deputy Speaker. [Applause.]
OFFICIAL OPPOSITION NOT IN TOUCH WITH ORDINARY CITIZENS
(Member’s Statement)
Mnr S SIMMONS (UPSA): Agb Adjunkspeaker, gebeure die afgelope week het net bevestig dat Suid-Afrika met ‘n amptelike politieke opposisie sit wat totaal uit voeling is met die gewone burgers van Suid-Afrika. Ek noem dít na aanleiding van die DA se ondeurdagte en onsensitiewe hantering van die 16 dae van aktivisme teen die mishandeling van vroue en kinders.
Dit is ook opvallend dat die DA bruin areas uitgesonder het vir hul laakbare en onsensitiewe hantering van hierdie netelige kwessie. Dit spreek boekdele sover dit die DA se gevestigde rassevooroordeel aangaan. (Translation of Afrikaans paragraphs follows.)
[Mr S SIMMONS (UPSA): Hon Deputy Speaker, events this past week have only proved that South Africa is saddled with an official political opposition that is totally out of touch with the ordinary citizens of South Africa. I say this with reference to the DA’s thoughtless and insensitive handling of the 16 days of activism against the abuse of women and children.
It is also striking that the DA reserved their despicable and insensitive handling of this delicate matter for the brown residential areas. That speaks volumes of the DA’s ingrained racial prejudice.]
The DA has at no point contemplated carrying out its panties exercise in a predominantly white suburb such as Constantia.
[Applause.] Why not? It is because that would have been upsetting and in bad taste for that community.
The largest opposition party of this country should caution itself against the obvious prejudice this country is fighting so hard against. I thank you, Madam Deputy Speaker. [Applause.]
SALE OF SCHWEIZER–RENEKE TOWN SQUARE TO ANC MEMBERS
(Member’s Statement)
Adv P S SWART (DA): Mevrou die Adjunkspeaker, die Mamusa-munisipaliteit in Noordwes se raad is in 2004 ontbind as gevolg van faksiegevegte binne die ANC, wat dienslewering onmoontlik gemaak het.
Onlangs het die nuwe raad besluit om Schweizer-Reneke se dorpsplein te verkoop vir die ontwikkeling van ‘n winkelsentrum. [Tussenwerpsels.] (Translation of Afrikaans paragraphs follows.)
[Adv P S SWART (DA): Madam Deputy Speaker, the council of the Mamusa Municipality in the North West was dissolved in 2004 owing to faction fights within the ANC, which made service delivery impossible.
Recently the new council decided to sell the town square of Schweizer- Reneke for the development of a shopping centre. [Interjections.]]
The DEPUTY SPEAKER: Order! Hon members, please! I’m sure we can do better than that.
Adv P S SWART (DA): Thank you, Deputy Speaker. I would really like the Minister for Provincial and Local Government to listen. I see he has left the House again.
Onlangs het die nuwe raad besluit om Schweizer-Reneke se dorpsplein te verkoop vir die ontwikkeling van ‘n winkelsentrum. En die volgende oomblik het ‘n beslote korporasie bestaande uit die vorige ANC-burgemeester en die ANC-sweep, die huidige ANC-sweep en twee huidige ANC-raadslede, as lede, ‘n voorlegging gemaak om die betrokke eiendom te bekom. ‘n Bedrag van R50 000 is aangebied terwyl die eiendom twee jaar gelede vir R2 miljoen gewaardeer is.
Sonder inagneming van enige tenderprosedure of advertensies het die raad die eiendom aan die BK toegeken met ‘n argument van swart ekonomiese bemagtiging. So word eiendom ter waarde van R2 miljoen vir R50 000 aan vorige en sittende ANC-raadslede vervreem.
Nog erger is dat die beskrywing van hierdie eiendom die huidige raadsgeboue insluit, terwyl slegs die biblioteek en die brandweerstasie uitgesluit word.
Dié is geen bemagtiging nie; dit is die skandelike en korrupte verryking van ANC-kaders ten koste van inwoners van die munisipaliteit en dienslewering.
Die DA vertrou dat die regering onmiddellik in hierdie situasie sal ingryp en stappe sal doen teen die raad om die besluit terug te trek. [Applous.] (Translation of Afrikaans paragraphs follows.)
[Recently the new council decided to sell the town square of Schweizer- Reneke for the development of a shopping centre. And the next moment a close corporation, consisting of the former ANC mayor and ANC Whip, the current ANC Whip and two current ANC councillors, had made a submission to acquire the relevant property. An amount of R50 000 was offered, whereas the property was valued at R2 million two years ago.
Without following any tender procedures or advertising, the council granted the property to the CC, arguing that this was black economic empowerment. In this way property to the value of R2 million was alienated to former and current ANC councillors for R50 000.
What is worse is that the description of this property includes the current council buildings with the sole exception of the library and fire station. This is not empowerment; this is the shameful and corrupt enrichment of ANC cadres at the expense of the residents of the municipality and service delivery.
The DA trusts that the government will intervene in this situation immediately and take action against the council in order to cancel the decision. [Applause.]]
THEFT OF MEDICINES IN STATE HOSPITALS
(Member’s Statement)
Prof S M MAYATULA (ANC): Sekela-Somlomo, ndenza umpoposho ngokubiwa kwamayeza ezibhedlele. Esinye sezibhambathiso esazenzayo singumbutho wesizwe i-ANC kukunikezela ngeenkonzo zempilo ezisemgangathweni kuye wonke ummi weli lizwe. Kukho iqaqobana labantu elizimisele ukudodobalisa iinzame zikarhulumente oxhuzula imikhala ngokuthi bazenzele ngolunya kumayeza amele ukuya kwizibhedlele zikarhulumente ukuze kuncedakale uluntu ngokubanzi.
Kutsha nje amapolisa eli athe agibisela kwezimnyama izisele isine sabantu esityholwa ngokubandakanyeka kobu buqhetseba bokubiwa kwamayeza kweliya laseGcuwa eMpuma Koloni.
Kwesi sine kubandakanyeka nomongikazi osele esidla umhlala-phantsi. Umbutho wesizwe uyawabulela amapolisa ngemisebenzi yawo emihle, kwaye thina singamalungu ombutho wesizwe siya kuthi gqolo ukusebenzisana nabantu bakuthi kunye norhulumente ekulweni intlupheko nentswela-mpilo. Enkosi. [Kwaqhwatywa.] (Translation of Xhosa member’s statement follows.)
[Prof S M MAYATULA (ANC): Deputy Speaker, I refer to the theft of medicine at state hospitals. The ANC has promised to deliver health services of a high standard to the people of this country. There are a few individuals who are letting this government down by stealing medicines. These medicines are meant for the public.
Recently, four people accused of the theft of medicines in Butterworth, Eastern Cape, have been arrested. The four people held include a retired nurse.
The ANC expresses its gratitude to the Police Service for the great effort they have put into this work. The ANC together with the community is committed to fighting poverty and ill health. Thank you. [Applause.]]
RURAL EDUCATION CONSULTATIVE CONFERENCE
(Member’s Statement)
Mr A M MPONTSHANE (IFP): Hon Deputy Speaker, the improvement of conditions in schools in rural areas has always been a matter of major concern, as learners in these schools have long been disadvantaged in various ways.
We are therefore pleased that the Minister of Education has indicated that she is giving serious consideration to convening a rural education consultative conference to allow affected communities to participate in and debate relevant strategies.
We, however, would like the Minister to come up with concrete plans that will indicate specific dates and terms of reference of such a conference, if it is to move beyond just being a consideration and if we are to make meaningful inroads into this serious challenge that we are faced with. I thank you.
ROLAND SCHOEMAN’S PATRIOTIC STAND
(Member’s Statement)
Ms A VAN WYK(ANC): Madam Deputy Speaker, it takes a South African patriot of a special kind for an athlete to say no to an offer of R20 million, because he or she wants to hear ‘Nkosi Sikelel’ i-Afrika played when he or she wins a gold medal in the next Olympic Games.
The patriot, a South African gold medallist, Roland Schoeman, a young swimmer from Pretoria, turned down an offer by Qatar to change his citizenship and swim for them in international competitions. Had he accepted the offer, he would have been a very rich young man, but he said no. The reason this young South African said no was that no amount of money would make him change his nationality.
The ANC calls on other young people to share in Roland’s optimism and pride for our beloved country, to have faith in this young democracy and to acknowledge that the dawn of democracy in 1994 has created many opportunities for young people to excel, especially in the sporting arena.
We call on our sporting bodies, the private sector and communities to form partnerships to create an environment in which our young people have a chance to excel and live their dreams. To borrow from a well-known advert: “Giving up your citizenship; R20 million. The cost of hearing ‘Nkosi Sikelel’ iAfrika at the Olympics; priceless!” Roland, we salute you. [Applause.]
ALLEGED CORRUPTION IN THE SABC BOARD
(Member’s Statement)
Ms M SMUTS (DA): Madam Deputy Speaker, SABC board member, Noluthando Gosa, has just resigned. She has made accusations of corruption and poor governance against the board that she leaves behind. She was herself under investigation at the time of her resignation.
In such circumstances, one is aware of the possibility that a person’s motives may be less than pure. Nevertheless, such circumstances can reveal other impurities. A board member’s company was allegedly awarded a large tender for a computer system. The chairman’s reported assurance that all conflicts of interests are declared is hardly enough to dispel doubt and suspicion, and the matter requires investigation.
The DA does not doubt the charge that the board members earn more than twice the maximum amount set for meetings, which is approximately R70 000 per annum. This is a board that does more than it is supposed to do. It has constantly intervened in programming and in commissioning guidelines and events, and so forth, where it does not belong. It is a political board.
It is for that precise reason that Ms Gosa was herself under scrutiny, after the corporation’s spokesperson Paul Setsetse was instructed to lie about the presence of a cameraman at the KwaZulu-Natal Women’s Day event.
Does the government not agree that this SABC board should sit as little as possible and earn no more than the set amount? The less they sit, the more they will serve the captive viewing public of South Africa. [Applause.]
BETTER LIFE FOR ALL IN THE WESTERN CAPE
(Member’s Statement)
Mnr M M DIKGACWI (ANC): Agb Adjunkspeaker, terwyl die ANC in die Wes-Kaap regeer, sal ons doelwit wees om ‘n beter lewe vir al ons mense in die Wes- Kaap te verseker, ongeag velkleur.
Die Wes-Kaapse regering het onlangs aangekondig dat dit beoog om ‘n pad te bou wat Bredasdorp en Gansbaai met mekaar sal verbind. Die geraamde koste vir die konstruksie van hierdie pad beloop R200 mijoen. Ongeveer 400 werkgeleenthede gaan deur dié projek geskep word. Die regering beplan om konstruksie oor twee maande te begin. Daar word verwag dat hierdie pad meer mense na die twee dorpe sal lok en die toeristebedryf in die geheel dáár sal bevorder. Die ANC doen `n beroep op mense om in samewerking met die regering dienslewering te versnel. Dankie, Adjunkspeaker. [Applous.] (Translation of Afrikaans member’s statement follows.)
[Mr M M DIKGACWI (ANC): Hon Deputy Speaker, while the ANC is governing the Western Cape, our aim will be to ensure a better life for all our people in the Western Cape, irrespective of the colour of their skin.
Recently, the Western Cape government announced that it intends building a road that will link Bredasdorp and Gansbaai. The estimated cost for the construction of this road amounts to R200 million. Approximately 400 job opportunities will be created by this project. The government intends to start construction within two months. It is expected that this road will attract more people to these two towns and that it will promote the tourism industry in general there.
The ANC calls on people to accelerate service delivery in conjunction with the government. Thank you, Deputy Speaker. [Applause.]]
FUEL CRISIS
(Minister’s Response)
The MINISTER OF MINERALS AND ENERGY: Deputy Speaker, Chairperson, I would like to respond to three statements made by three hon members.
To start with, I am disappointed that the hon member from the DA has raised a question in this Parliament as to who is responsible for this situation, because I think he, more than anybody else, knows that the industry is to blame in this case. He has been part of the committee that has been involved in formulating the policy that is now being blamed for this crisis.
He knows very well that, from the government’s side, everything has been done to prepare for the start of cleaner fuels. In fact, even the industry assured me yesterday that there was nothing wrong with the policy. There have been no problems in planning. All the investments that we agreed upon have been made. The lead time they asked for was the correct lead time and we must therefore not blame this on the government.
What has happened here is that when we came to know of the crisis, we called an urgent meeting of the captains of industry to find out what the nature of the problem was. We were assured that the problem had been caused by bad planning on their part. They underestimated the changeover of their refineries but everything is under control.
In Gauteng the problem has been caused by panic buying, because when this hit the public people panicked and filled up their tanks, even those who did not need to do so. I am happy to tell hon members that as we stand, our two refineries in Durban are running at 100% capacity; the two inland refineries are also running at 100% capacity; our pipeline is at 100% capacity; and the Caltex refinery here in the Western Cape is by now at 80% capacity and PetroSA is at 70% capacity.
Concerning those areas where there is a shortage of fuel, fuel is being transported from Durban. Companies have also applied for import permits to import fuel. That is the status at present. What I do not want is the panic demonstrated by saying, “We do not have physical stock.” We do have physical stock, and it is going where it is required.
What I would also like to say is that, obviously, this is an emergency that we are dealing with and whoever is responsible is going to take the responsibility. As far as we are concerned, everything has been done to prepare the industry to be ready for this.
If they had said to me, Adv Schmidt, that there was a problem regarding implementation of the cleaner fuels policy on 1 January, we would obviously have reconsidered the issue. They, the people who have dealt with this issue, say there was no problem. All the oil industries, all their managers, all their CEOs were there and assured me.
They have not asked for an extension as from June this year. We anticipated that as they shut down to reconfigure their refineries, they might need to import petrol. Since June, we have been asking, “Who needs an import permit? Don’t you want to import fuel to prepare for this?” No one came forward to apply for import permits.
As far as we are concerned, this is therefore just a contingency issue that they are dealing with, and which we are also dealing with. We are obviously dealing with the investigation that you just talked about and we shall be making announcements soon as to what is going to happen to this commission which is going to review the petrol situation.
With regard to the hon member who said that the portfolio committee was not informed about this, I do not know where he was when this issue was debated, because this issue came before the committee in 2002. [Interjections.] I think I have dealt with all three of the issues that were raised. [Applause.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon members, you have had an opportunity to make statements. When a member of the executive is responding, you do not have the courtesy to listen. I think it is uncalled for. This is a very important issue as far as the nation is concerned. It is an opportunity for the Minister to address the nation on this issue, and then you do not afford the Minister the opportunity to be heard. I think it is very discourteous.
The CHIEF WHIP OF THE OPPOSITION: Mr Chairperson, on a point of order: Interjections have always be permitted in the National Assembly. [Interjections.] Are you ruling that interjections are unparliamentary or discourteous?
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! We will afford one another the opportunity to be heard. There are interjections, and then there are interjections. When one is disrupting the member of the executive who is responding, however, the Chair will not allow it.
The CHIEF WHIP OF THE OPPOSITION: Chairperson, there was no disruption. [Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! If it happens again, the Chair will intervene. Clearly we have to allow each other the courtesy to be heard.
The CHIEF WHIP OF THE OPPOSITION: Chairperson, may I address you on a point of order? [Interjections.] Hon members need to know what the guidelines are within the Rules. Interjections have always been permitted. The Chair is now suggesting that the proceedings were disrupted. I want to suggest to you that they were not disrupted.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Mr Gibson, that is not a point of order. Please take your seat.
CONCERNS OVER FUEL SHORTAGE AT CAPE TOWN INTERNATIONAL AIRPORT
(Minister’s Response)
The MINISTER FOR PUBLIC ENTERPRISES: Chairperson, I would like to respond to those members who have highlighted the incident at Cape Town International Airport. Quite clearly, this was a serious problem. It did inconvenience passengers and airlines and is obviously something we would not like to repeat. The lesson will be learned, and we shall collaborate with the private sector, as has been discussed by the Minister of Minerals and Energy, and with the Airports Company.
As we have indicated to our passengers at SAA, and I am sure other airlines have done the same, we really regret some severe inconvenience that occurred. We have to learn our lessons and make certain it does not happen again. [Applause.]
WORLD HERITAGE SITES IN SOUTH AFRICA
(Minister’s Response)
The DEPUTY MINISTER OF ARTS AND CULTURE: Chairperson, I want to thank the hon member who raised the issue concerning the opening of Maropeng Visitors Centre and say that the opening of that centre, at the Cradle of Humankind, which is one of the seven world heritage sites in South Africa, is yet another step to advance Africa’s claim in the world community.
Our world heritage sites play a very important developmental as well as educational role. These world heritage sites are going to have a huge tourism impact, with our support.
I want to appeal to members of Parliament to make a point, especially during this period, of visiting all seven heritage sites together with their families, and actually be ambassadors who are able to tell tourists from outside our country visiting these sites about them. Yet it happens that we in South Africa do not visit these heritage sites. I therefore want to make an appeal that some of the places you visit over the festive season should actually be these seven heritage sites. Thank you. [Applause.]
SERVICE DELIVERY AND HOUSING IN DE DOORNS; ALLEGED CORRUPTION OF ANC
COUNCILLORS IN SCHWEIZER-RENEKE
(Minister’s Response)
The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson and hon members, this is a response to the hon Jonathan Arendse’s statement regarding service delivery and housing in De Doorns. We welcome service delivery to the community of De Doorns who have been living under terrible conditions for many years, in a province which was not governed by the ANC until recently. [Interjections.]
Under the programme of Project Consolidate we have identified the bottlenecks and begun to address them. One thing I want to remind the House about is that the ANC government took over in 1994 and we were not the creators of the bucket system in this country. That is exactly what we are trying to address. We inherited this mess in 1994 and we are addressing it now through Project Consolidate. [Interjections.] If only Mr Doman can give us one good example of success during the DA period in the province, I would welcome it.
The second statement was about Schweizer-Reneke and ANC councillors in corrupt practices selling off government property. The hon member has not given us any help whatsoever by coming to this House and telling us about corrupt practices of ANC councillors. The hon Minister is sitting here. Give us the information and proof thereof and we will agree to deal with the problem of those alleged corrupt ANC councillors. Give us information and do not just come and make a noise here about some unfounded information. Thank you. [Applause.]
SIGNIFICANCE OF ROAD LINK BETWEEN BREDASDORP AND GANSBAAI
(Minister’s Response)
The MINISTER OF FINANCE: Mnr die Voorsitter, ek wil net `n bietjie aandag skenk aan die aangeleentheid wat deur die agb Dikgacwi geopper is. [Mr Chairman, I would like to devote some time to the matter raised by the hon Dikgacwi.]
The road between Bredasdorp and Gansbaai is clearly very important. It is important to unlock the economic potential of that region. Part of what we must focus on is how we can create alternatives in the lives of people. The hon Van Schalkwyk would tell us long stories about just how difficult it is to create viable alternatives in the lives of people who have made a lot of money in that particular region from things like perlemoen poaching etc.
This road could clearly make a very significant difference. But, along with it, I think we must support the province and the Overberg municipality to ensure that there are viable and sustainable economic alternatives to bring continued improvement in the lives of the people of the Overberg. I missed the hon Van Schalkwyk in the House earlier on, but I am sure he would amplify for a very long time on what I have said.
Ke a leboha, ntate. [Thank you, sir.] It is a very important issue. Thank you. [Applause.]
PROPORTIONAL REPRESENTATION SYSTEM; HEALTH CARE SERVICES IN RURAL AREAS; THEFT OF MEDICINES; SAFETY AND PROTECTION OF COMMUNITIES
(Minister’s Response)
The MINISTER OF EDUCATION: Chairperson, I was a little surprised at the comment on the proportional model utilised in a range of institutions and systems in the country, particularly coming from a member of the PAC, a party that hugely benefits not from electoral votes but from the proportional representation system. I therefore find this a little surprising.
However, I would like to agree with the hon members Malumise and Mayatula who referred to the issue of partnerships in the manner in which we should address the significant social problems confronting our country. We have all spoken about the need to act with care and support in response to those affected by and infected with HIV/Aids and we would certainly join the hon Malumise in welcoming the work being done by Mrs Mbeki in the Idutywa/Butterworth area.
Further, the hon Mayatula is absolutely correct. We cannot have a person stealing medicines in our country, especially in the smaller hospitals and clinics that serve the poorest of our community. Therefore the police and the work done in Butterworth are certainly to be commended.
I believe, during this festive season, a season very challenging and difficult for those working in the areas of safety and security and protecting our communities, we must have special sympathy and support for the Police Service, for those working in emergency services, and for those ensuring that we are protected and cared for – our nurses, doctors etc.
We should extend a hand of support to all those working in these services, to the volunteers who support children who are orphans, to the nurses who support those who are sick and to the doctors who are going to have to deal with very difficult emergency situations regarding car accidents, violence, the use of guns etc.
We, therefore, certainly, agree with the hon members that we should thank those who serve to promote safety and security in our country. We urge our public servants to protect public property and enhance public services in our country . . .
The HOUSE CHAIRPERSON (Mr G Q M Doidge) Order! Hon Minister, your time has expired.
The MINISTER OF EDUCATION: Thank you. [Applause.]
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON DEFENCE – FACT-FINDING VISIT TO WALLMANNSTAHL
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON DEFENCE – PUBLIC HEARINGS ON THE WALLMANNSTAHL LAND CLAIM
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON DEFENCE – OVERSIGHT VISIT TO THABA TSHWANE
Mr S B NTULI: Hon Chairperson, hon members, Ministers and Deputy Ministers present, firstly, I wish to dedicate my speech on this report to a gallant soldier, an ordinary father and family man who resisted forced removals imposed by the then apartheid government of the National Party, a family man who was killed on 2 April 1983 by the South African police at a close range of 100 metres for refusing to be removed from his original land. Ladies and gentlemen, hon members, I speak here of the late Sol Vusumuzi Mkhize of Driefontein, Wakkerstroom and Mabola areas in Mpumalanga.
This just shows how far the Land Act has actually dispossessed the South African people of their original land. The local inspection of Wallmannstahl as per the claimants’ grievances, that is, on land restitution, shows that the Land Act itself was a notorious Act. It resulted in the displacement of the Africans from their original land; land that was fairly good in providing grazing for their livestock, land with accessible water, and land where they could practise subsistence pastoral farming.
Hence, we in the ANC hold the view that land restitution is actually a human rights matter. It is a human rights matter, because how can any human being live without water for themselves and their livestock? How can any human being live after being driven away from their fertile land and displaced to inarable land?
Therefore the local inspection by the Portfolio Committee on Defence carried out on Wednesday, 24 August 2005, was to ascertain the size and scope of the land in the Wallmannstahl community so as to see how it affects the following areas: Buffelsdrift, Wallmannstahl West, Wallmannstahl East and Wallmannstahl Central.
These portions have already been returned to the claimants by the ANC government. The issue at hand is the northern part. This is the area linked to Wallmannstahl Central, which is used by the current SA National Defence Force. There is no question about it. However, the issue being argued about by the land claimants is the area between Wallmannstahl Central and a place or area further north between Wallmannstahl Central and the area of the General Piet Joubert Military Training Facility.
There is an area of approximately 400 hectares that we are talking about, then there is a strip of the road between the General Piet Joubert Military Training Facility and Wallmannstahl Central which is used by the SANDF. The claimants don’t have a problem with the road or the strips of land. What they need is the land which has access to the Pienaars River. The strip of road does not make up the entire 400 hectares.
By its own admission, the SANDF uses the road sporadically. Besides, there is an alternative road currently being used to commute between the two areas mentioned. Thus the Department of Defence really would not collapse if it were to give the 400 hectares back to the community, that is the claimants, to further restore the human dignity and human rights of the Wallmannstahl claimants.
Furthermore, the portfolio committee also looked at the areas such as the military base’s facilities. Some facilities are in a bad state for human occupation, which of course poses a threat to human life. The Department of Defence needs to pay serious attention to those matters as articulated in the report. We are talking here of Thaba Tshwane, that is One Military Hospital, the military air force school, the military intelligence headquarters in Tshwane etc.
Therefore, on behalf of the ANC, I commend to the House the debate and the adoption of the report on Wallmannstahl, and the entire report on the Portfolio Committee on Defence’s visit. I thank you. [Applause.]
Moulana M R SAYEDALI-SHAH: Hon Chairperson, the land claim of the Wallmannstahl community was registered in 1994 and has yet to be resolved. The committee decided to investigate this issue after receiving several requests for interventions from the claimants, and it therefore decided to undertake a fact-finding mission to Wallmannstahl on 28 August 2005. We subsequently held public hearings on the land claims on 6 September.
Amongst many, the following are some of the key findings: The land claims against the Department of Defence amount to approximately 311 270 hectares, of which 1 628 hectares are under claim by this community. Of these 1 628 hectares, approximately 400 hectares of land were in dispute and were delaying the entire process and settlement of the claim.
The Department of Defence, DOD, uses this piece of land, which amounts to approximately 400 hectares, to connect the joint support base, Wonderboom, with its training area in Piet Joubert Military base. The DOD fenced this area, forcing the claimants to redirect their cattle approximately 11,5 kilometres in order to reach the Pienaars River for drinking water. The claimants stated that information relating to this strip of land was published in the Government Gazette as a land claim, whereas the DOD on the other hand has not released the land, arguing that it is of strategic importance.
Finally, the following are some of the recommendations made by the committee: The Minister of Defence should meet with the Wallmannstahl community to bring this process to completion. All the final remaining snags surrounding the issue of the fences etc, should be addressed by the relevant Ministries, including the Departments of Public Works, Land Affairs and Defence and, at all costs, we must avoid a court case because it can prove very costly.
The Portfolio Committee on Defence also received the reports from the public and members of the SA National Defence Force and DOD that the defence facilities, including hospitals and buildings used for education and training, living quarters etc are in a general state of disrepair. In order to ascertain the situation, we visited several military bases and units in Thaba Tshwane.
The maintenance challenges of the different units are of a generic nature, and these challenges include the continuous structural repairs, paintwork etc. Many of the facilities in the DOD no longer conform to the minimum requirements of the Occupational Health and Safety Act. Urgent attention must be given to co-ordinate efforts between the responsible departments, including the Departments of Labour, Public Works and Defence to improve the situation.
The committee has made several key recommendations. One of those is that One Military Hospital, that provides services beyond the SANDF, should receive the necessary maintenance and repair budget to maintain its image and output as an international service provider. The accommodation of the nurses at the military health training formation should receive priority attention.
Finally, the defence intelligence headquarters should relocate to Radcliffe for geographical, technical, financial and, above all, security reasons. Most importantly, the procurement and tender process of the Department of Public Works should ensure that contractors are competent to execute the requested task.
Let me give you a brief case study to illustrate the modus operandi of the Public Works department to maintain these facilities of the DOD. In 2004, the Department of Public Works allocated approximately R870 000 for the construction of a swimming pool for training purposes at the Special Forces School unit. The funding was forfeited due to poor delivery by the preferred contractor. This contractor had no construction experience whatsoever, did not have a mentor and failed to comply with the time schedules.
Several snags still remain in this project. This procurement process, which resulted in an incompetent contractor being chosen for the project, leaves much to be desired. This is yet another example of BEE gone wrong.
Mrs S A SEATON: Chairperson, hon members, on 18 and 19 August 2005 an oversight visit was undertaken by the Portfolio Committee on Defence, accompanied by military officers and officials of the Department of Defence as well as the Department of Public Works to various military units in the Thaba Tshwane area.
The aim of the visit was to ascertain the state of the facilities and the maintenance thereof. Included among the main findings by the committee were the following: the appalling state of accommodation of nurses at the military health training formation; the gap in communication between the Department of Public Works and the Department of Defence; and the living conditions of the learners in some units not fit for human occupation – it would impede the training of learners. The committee came up with many recommendations, which we believe would go a long way towards improving the situation.
In August this year, the Portfolio Committee on Defence also undertook a fact-finding visit to Wallmannstahl to ascertain the size and scope of the land claim of the Wallmannstahl community. Among the main findings of this visit was the communication gap between the Departments of Public Works, Land Affairs and Defence, which was a major reason for the claim’s process not being finalised.
In September 2005, the Portfolio Committee on Defence held public hearings on the Wallmannstahl land claim. It was briefed in April by the Departments of Defence and Land Affairs on the state of land reform and the land utilisation of the Department of Defence. The briefing was, however, unco- ordinated and sometimes contradictory.
At the public hearings, the above two departments, along with the Department of Public Works, made a joint briefing and reported that the joint structure had been established. Among the main findings stated in the report is that there is a general agreement between the community and the Department of Defence on most of the claims lodged by the community. It is recommended, as we have heard from the report, that the Minister of Defence should meet with the Wallmannstahl community to bring the process to completion by 24 December 2005 so that an official handover to the community can take place in April 2006.
The IFP supports the approval of these reports. I thank you.
Mr G T MADIKIZA: Chairperson and hon members, the first two reports of the Portfolio Committee on Defence deal with the Wallmannstahl community’s land claim, which has not been resolved for many years now. We concur with the recommendations of these reports and we express the hope that the Minister of Defence’s intervention will lead to a resolution. The handover of the land by 24 December 2005 would be a wonderful Christmas present to a community who was forcefully removed from their land decades ago.
The third report deals with the portfolio committee’s oversight visit to Thaba Tshwane, where various critical military units occupy land and buildings. The finding that most of the buildings are in a general state of disrepair is of great concern. The longer the maintenance thereof is neglected, the higher the costs of eventual repairs or replacements.
We concur with the report’s recommendations and urge both the Department of Defence and the Department of Public Works to address these critical infrastructure issues speedily. I thank you. [Applause.]
Mr O E MONARENG: Hon Chair, hon members, I want to express my greetings to all. Let me start off by saying that the committee has undertaken various visits on various days, and the days are specifically mentioned in the report. The first visit was to Thaba Tshwane on 18 and 19 August 2005.
The committee wishes to express the view that when it undertakes oversight visits, it really means business. On the above-mentioned dates we were able, as a committee, to visit the SA Military Health Service Training Formation, the One Military Hospital, the Special Forces School, the Joint Support Base Garrison, the defence intelligence headquarters, the SA National Defence College, the SA National War College, the SA Air Force College and the SA Air Force Gymnasium.
So it is clear that the purpose of the visit was to make sure that we deal with the manner in which the department deals with maintenance of facilities. That was actually investigated by the committee.
The Portfolio Committee on Defence was, in the same vein, able to visit Wallmannstahl for an investigation into land. And, in this process, questions were asked as to what the Department of Defence had to do with the land claims issues. However, because the portfolio committee is a parliamentary committee that always follows the position adopted by Cabinet, the position of the ANC on land restitution is clear.
We were, therefore, able to visit these institutions so as to make sure that certain things are done by the Department of Defence and the SA National Defence Force. In so far as buildings and their maintenance, and land, are concerned, we know that the Department of Public Works is responsible for these. This department is the custodian of state land and facilities and therefore is responsible for the maintenance and repair of these facilities.
The department only dealt with maintenance requests that cost more than R500 per case. Approval by the Department of Public Works was also necessary for cases below R5 000, because it has the technical know-how to advise the user, that is the Department of Defence, on the best course of action.
Each military unit has a budget for day-to-day maintenance, but it is insufficient and is only used for emergency cases.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order! Hon member, please take your seat. Hon members, the noise level is too high, and there are very serious meetings taking place in the House. I would like to ask you to just lower the noise level so that we can hear the speaker at the podium. Please continue, hon member.
Mr O E MONARENG: Each military unit has a budget for day-to-day maintenance, but it is insufficient and only used for emergency cases. In most cases, it is insufficient to deal with emergency cases owing to the deteriorating state of facilities and maintenance backlogs. Spending is prioritised on core business of the units, whether it is training or accommodation, so that the output is not interrupted.
The situation at the defence intelligence headquarters and the SA National War College was different, because the defence intelligence headquarters are rented from private institutions. The maintenance and repair routine have been determined by the owner, who is mindful of overinvestment in old buildings. The maintenance requirements of these two units have been addressed by the owner, but very slowly.
The SA National Defence College was the only unit that did not have critical maintenance problems, apart from the living quarters of the learners. The Special Forces School used its own capabilities to improve and maintain facilities. All the different units had maintenance challenges across the spectrum, which were of a generic nature.
I just want to say that, in terms of our findings as a committee, we have made sure that we address the following issues. The first issue is the question of accommodation of nurses at the SA military health services training formation, which is appalling and not fit for habitation. We have said that the department should look into this issue. The second issue is that One Military Hospital shows signs of structural and mechanical neglect. The military hospital needs an urgent revamp.
Thirdly, the decision on the military intelligence headquarters location has not been finalised. I heard Mr Shah saying that it has to go somewhere. The committee agrees that it has to be relocated somewhere, but the Department of Defence will finalise the relocation process.
Fourthly, Thaba Tshwane was built on dolomitic land and has had virtually no upgrade or renovation during the past two or three decades. It therefore poses serious structural and maintenance problems for the Departments of Defence and Public Works.
Fifthly, the Department of Public Works is responsible for more than 80% of the total funding for DOD facilities with regard to planned maintenance and day-to-day maintenance of cases costing more than R500 each, while the DOD is responsible for the funding of the day-to-day maintenance costing less than R500 per case.
I am sure that Mr Shah raised an issue that completely distorted the processes of procurement. The procurement process is not a difficult process, and neither is it as a result of BEE incompetence. But what we have recommended as a committee is that that process should be relooked at and that funding be increased.
The sixth point is that there is a communication gap between the Department of Public works and the Department of Defence. At one of the units the Department of Public Works stated that the R5 000 maintenance threshold was raised to R20 000 per case, but the DOD was not aware of it. So the recommendation is that this maintenance money should be raised either to R20 000 or to R30 000.
Regarding the question of the Department of Public Works, this department does not provide regular feedback to units on the progress on maintenance requests, tenders and contracts. So the DOD has to look into this process together with the Department of Public Works.
The department itself has a 10 to 15 year repair and maintenance programme to address the maintenance and repair needs. The department has to relook at its maintenance strategy. And, as such, the findings of the committee have to give us answers because we have tabled this report here.
Coupled with the findings of the committee, we have made the recommendation that the department should act. With regard to the Wallmannstahl issue, the speakers who spoke before me did make it clear that the Portfolio Committee on Defence is very serious about the matter.
The question of the outstanding 400 hectares is delaying the land restitution process for the people of Wallmannstahl. We have actually sent a communiqué to the Minister of Defence so that this matter can be resolved speedily.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon member, your time has expired.
Mr O E MONARENG: Thank you, one and all. [Applause.]
Mrs C DUDLEY: Chair, the Wallmannstahl report makes it clear that a lack of communication between the Departments of Defence, Land Affairs and Public Works has considerably slowed down the land restitution process. It has become evident that interdepartmental communication is a critical factor in the success of land reform initiatives.
In this case, lack of communication meant that claimants were subjected to a lengthy, drawn-out procedure creating uncertainty and anxiety and wasting time and money. The ACDP is concerned by the fact that the Department of Defence was not able to provide the community and other role-players with clear information on the reasons that made them feel they could not relinquish the land.
Our democracy is underpinned by transparency and accountability. This means that the communities whom the government departments serve are entitled to open and honest communication, particularly when one is dealing with a major transformation tool such as the land reform process.
The country cannot afford to indulge departments hindering the land reform process. It is a serious matter that involves the lives and livelihood of South Africans.
The HOUSE CHAIRPERSON (Mr G Q M Doidge) Order! Hon member, your time has expired.
Mrs C DUDLEY: I thank you.
Mnr P J GROENEWALD: Agb Voorsitter, ek dink ons moet ’n stadium bereik waar ons die ware feite in die oë moet kyk, en feit is dat die SA Nasionale Weermag besig is om uitmekaar te val. Ons kan hoeveel besoeke aan basisse bring en ons kan hoeveel beskuldigings teen die Departement van Openbare Werke bring dat hulle nie hul werk doen nie, maar die werklikheid is dat die begroting van die Weermag van so ’n aard is dat hulle nie hul taak behoorlik kan volbring nie.
Dit is skokkend as verslae bekend gemaak moet word dat daar nie eens genoeg geld is om genoeg ammunisie aan te koop vir die SA Nasionale Weermag nie. Dit het in hierdie stadium so ’n punt bereik dat ons vir mekaar moet sê dit help nie net om besoeke te bring en verslae op te stel om hier in die Parlement ter tafel te kom lê en dit te aanvaar nie. Nee, ons moet ook iets begin doen. Ons sal moet optree, en een van die heel eerste dinge wat gedoen sal moet word, is om ernstig te besin oor die begroting van Verdediging. Ek dank u. (Translation of Afrikaans speech follows.)
[Mr P J GROENEWALD: Hon Chairman, I think that we have to reach a stage where we face up to the real facts, and the fact is that the SA National Defence Force is falling apart. We can pay as many visits as we like to the bases and we can lay as many charges as we like against the Department of Public Works for not doing their work, but the reality is that the budget of the Defence Force is of such a nature that they cannot perform their task properly.
It is shocking when reports have to be released that there is not even enough money to buy sufficient ammunition for the SA National Defence Force. At this point it has reached the stage where we have to say to one another that it does not help merely to pay visits and compile reports to be tabled and adopted here in Parliament. No, we also have to start doing something. We will have to act and one of the very first things that will have to be done is to reflect seriously on the budget for Defence. I thank you.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon M Diko? Is he not here?
The CHIEF WHIP OF THE OPPOSITION: [Inaudible.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Mr Diko is not here. I won’t repeat what Mr Gibson has just said.
Ms S RAJBALLY: Chairperson, the MF, firstly, takes this opportunity to thank the committee’s task team which paid a visit and compiled this informative report on the sector. In view of the matter at hand concerning the land claims issue between the community and, mostly, the Defence Force facility situated in Wallmannstahl, the MF, noting that the community’s majority claim is on this area, feels that the recommendation made by the team on both reports regarding the land claims should be seriously considered and advocated.
We feel that, if alternative land cannot be made available to the community to compensate for the land taken up by the Defence Force, monetary settlement should also be possible if it is not viable that alternative sites be established for the Defence Force facility in that area.
Now, looking at the third report on the state of the facilities in that area, the MF finds it necessary, once again, to take in a serious light the recommendations made. We do see great benefits in communication between the Department of Defence and the Department of Public Works, considering the financial decision regarding the maintenance of the facilities.
The maintenance and the management of all facilities need to be instituted according to their prescribed parameters and authority. Further, adequate management of such shall ensure the exercise of duties of our Defence Force in suitable surroundings and a credible environment.
The MF supports the recommendations made in these reports. Thank you, Chairperson.
Mr M S BOOI: Hon Chairperson, hon Ministers that are present here, Deputy Ministers, the Portfolio Committee on Defence is submitting its report to Parliament. A number of members have already alluded to the fact that this is a true report and that we have done quite a lot of work after having been approached by the public.
When you look at the Wallmannstahl issue concerning land claims, you will find that we were approached by the public as the Defence committee. We took it upon ourselves as members of Parliament to visit those particular communities. Essentially, what is important about that is that it is about how Parliament continues to explain some of the policies that the Freedom Charter outlined, that you should always be closer to the people and listen to what the people are doing. That was what was essential with this type of initiative.
I’m totally shocked, because even the hon member C Dudley was not in the committee. She doesn’t even know what we are talking about. She has received the reports that we have given to them. So it is really shocking when members don’t really inform themselves and look at the processes of Parliament and familiarise themselves with those.
Even if you can’t make it, you should come and talk to us. We are quite available because when you make these general statements regarding transparency, lack of consultation, lack of communication, we wonder, as the portfolio committee as to, “Where did you pick up that type of information?” [Interjections.] I am coming to you. We wonder, “Where did you pick up that information because ourselves and the community have been in interaction?”
The fact that we visited the department and the type of analysis that is even given by the DA concerning that type of visit, our sharing of information with them and the various departments that we have consulted with, even regarding the Wallmannstahl issue, show that there has been transparency. It’s not something that we are hiding. It’s not something that we have done behind somebody’s back. We have been inviting all different parties.
For me, it’s very important indeed that members of Parliament should always give respect to the House itself and familiarise themselves with issues as they are being explained. The two reports in front of members outline the issues that have been raised. The ANC is always there for transparency; the ANC is always honest about what it is doing. These are the lessons that the ANC has learnt throughout this process.
We continuously say that the people shall govern. So I would hope that the hon C Dudley would familiarise herself with the report and really reflect upon it, and not generalise. There has been quite an open way of dealing with it. That’s why there is a committee formed between ourselves and the Departments of Land Affairs and Public Works to look at the situation, not to try and sweep it under the carpet as if we don’t know what is going on.
More than that, what we are saying, hon Groenewald, is that we do care. We do care about the soldiers. Definitely, the size of the Defence Force that was there before 1994 and the continuous trimming down of the Defence Force does call for us to really do a reassessment of their budget. You can’t just generalise. [Interjections.]
We have made you very aware. We have given you the review of the White Paper; and we have given you the Defence Review. Those policies are there. The work and management of the Defence Force, at this particular moment, has really improved. It is being handled in a manner that is quite impressive. Regarding the way they are handling the peacekeeping forces within the different areas of deployment, it has been going very well. You don’t have problems regarding major issues.
Mr Groenewald, the budget wouldn’t be the same budget that you expected during the apartheid era because defence was then the priority. Today, the issues that are going to be handled are issues that are related to local government. Today, the issues that are related to health and Aids are issues to us. Today the issues that are related to education are issues to us. They are priorities. There is no way we would always want to arm the Defence Force as if it has a threat.
I have always said that there is no threat and there is no way that we are going to build a huge army. For what purposes would that be? You must always define the purpose and you must always define the threat. Sometimes you don’t understand what the purpose of having a defence force is. Ensuring the readiness of the Defence Force is what we have been doing.
Go about, investigate and see what exactly is happening to your Defence Force. That’s the type of responsibility we have taken upon ourselves. We have engaged with different soldiers to inform them that this is what is happening. We are satisfied about how the integration process has taken place and this is what we are saying.
Now, we are saying there are equipment shortages. We are not hiding that. We have spoken about it. Members here have alluded to the fact that this is something that we need to be able to attend to. But we are saying, don’t create an expectation in the Defence Force as if the budget is going to grow because the expectation is there from our people that we must be able to deal with the issues of Aids, and that we must be able to have the capacity to deal with the issues of education. Those are the priorities of this particular government of the ANC.
There is no way, as a Portfolio Committee on Defence, we are going to run around and say: Have a huge budget for Defence. What would the purpose be? We say there is no threat, and when there is no threat you are not going to say this is supposed to be the priority.
So we are really saying that we are working closely with the different departments with which we interact. We are clearly saying that every time the public has a concern they must come to Parliament and be able to report to us. As hon Ntuli has pointed out, we have been able to handle the Wallmannstahl issue in the proper way.
We have been able to look into the issues of how we make sure that the land compensation issues are being handled because the Defence Force has vast tracts of land. We have to start trimming that land down and giving it to different communities. But we are not going to do that recklessly and in a manner that is going to disrupt the Defence Force. We are doing it in a manner that we should be able to continuously say that we are building their own capacity as a defence force.
But we also make sure that communities that are nearer and communities that have claims around these issues of land are able to be given this particular land. These are the issues that we really address within this particular report. And these are the issues that we say we really need to improve on.
We are going to be able to negotiate and persuade different members to understand that it’s important for us to improve the equipment. But there is no way you are going to say to us that there is no ammunition in the Defence Force. You are not telling the truth. We have even gone beyond the borders of South Africa. We have gone into the DRC and we have interacted with those people there. We have interacted with our own soldiers and we know that they are combat ready. They are combat ready such that any time that you attack them they will be able to retaliate.
We are saying that there is no way that you could come here and say to Parliament, “Regarding your equipment, the Defence Force don’t have anything with which to defend themselves.” Wherever they are deployed, they have nice tents. Within Sudan, they have the best tents in which they can stay. So you can’t be saying that they don’t have equipment.
These people are very ready. They are ready to defend the citizenry of South Africa. They are prepared to deal with the issue of rejuvenation. The Defence Force is rejuvenating itself. The SA Air Force is rejuvenating itself. It has capacity. You can’t say to me that the arms package has not been able to help keep the Defence Force ready. It is doing that.
Because you want to ignore issues and because you just want to slander, you then come here and say to Parliament that the Defence Force is not ready. This Defence Force does have the capacity and it is ready to defend the citizens of South Africa, whatever you say. [Applause.]
Debate concluded.
Mr S K LOUW: Chairperson, on behalf of the Chief Whip of the Majority Party, I move:
That the Reports be adopted.
Motion agreed to.
Report of Portfolio Committee on Defence on Fact-Finding Visit to Wallmannstahl accordingly adopted.
Report of Portfolio Committee on Defence on Public Hearings on the Wallmannstahl Land Claim accordingly adopted.
Report of Portfolio Committee on Defence on Oversight Visit to Thaba Tshwane accordingly adopted.
CROSS-BOUNDARY MUNICIPALITIES LAWS REPEAL AND RELATED MATTERS BILL
(Second Reading debate)
The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson and hon members, the House has convened to consider the Cross-boundary Municipalities Laws Repeal and Related Matters Bill. This watershed development will set the scene for the reconstruction of our developmental landscape.
As we speak, the NCOP is also getting ready to convene tomorrow, in order to consider the Constitution Twelfth Amendment Bill, a Bill that was referred to it by the National Assembly for concurrence. Today’s event has the effect, therefore, of bringing us to the penultimate stage in the finalisation of the legislative programme. It thus confirms the country’s preparedness to hold local government elections on 1 March 2006.
The need for the geographical reordering of provinces and for the modification of the local government structure was accentuated by the realisation that cross-boundary municipalities are among those municipalities which, in the last five years, registered a relatively weak performance. Indeed, these particular areas were trapped in a structural design, which is inappropriate to the task of universalising access to basic services, as well as cultivating conditions for sustainable local economic development.
For the government, the task of redressing the problem does not end with the redrawing of boundaries, for we are talking here of millions of people who are residents in municipal areas which, by law, suffered statutory expulsion from the national economy. As hon members are aware, from late 2004, we have been rolling out a programme of intervention, aimed at bringing about system-wide improvements within the local government sphere. These include fiscal interventions directed at lifting investment on infrastructure, and accelerating the pace of redressing service delivery backlogs.
We will soon be announcing concrete measures, which are intended to enable erstwhile cross-boundary municipalities to tap into the ever-expanding veins of municipal fiscal power. This is necessary because a disproportionately high number of people, who live in the cross-boundary municipalities, survive on social grants of various kinds.
The only sustainable way in which those areas can be lifted out of wretchedness and poverty is to ensure that we craft a more even spatial pattern of socioeconomic development, and that we increase the absorptive capacity of those municipalities that have hitherto been battling to carry out their developmental objectives. This Bill promises to make a substantial contribution in this regard. For that reason, I commend the Bill to the House. I thank you. [Applause.]
Mr S L TSENOLI: Chairperson, comrade Ministers, hon members, the Cross- boundary Municipalities Laws Repeal and Related Matters Bill is consequential to the Constitution Twelfth Amendment Bill. Together, these legislative and constitutional amendments give effect to a review that was undertaken that concluded that we should do away with cross-boundary municipalities.
The Demarcation Board and provincial governments also took advantage of the opportunity created by this process to deal with unfinished business relating to boundaries and section 12 notices by updating them. This is what is essentially the current idea of municipalities.
This work also gives effect to a broader national agenda to strengthen institutions of governance, to reorganise them with a broader purpose in order to improve our ability to satisfy people’s basic needs. This state that we run, as the ANC, is not a hostile one, imposed on people, but it comes from them through open democratic means.
It uses its power and influence, its resources, to relentlessly pursue a people’s agenda to satisfy people’s needs. That, sometimes, in the process of doing so, we may produce unintended consequences, cannot be interpreted to mean insensitivity to people’s needs.
Our commitment to carry out this people’s agenda is undoubted. As articulated in parliamentary and legislature submissions and hearings, we will be attending to these issues. We have attended to them directly and indirectly.
It is, however, Parliament and government’s responsibility to negotiate and always produce the best results from often conflicting positions, as well as resolve, to the best of our ability, the tension between doing things in the short term, in the medium term, or in the long term. Advanced work is already under way – having learnt from the past reduction of municipalities how to facilitate a smooth transition and handover in the areas affected.
The Portfolio Committees on Provincial and Local Government and on Justice and Constitutional Development, as well as the Select Committee on Local Government and Administration, worked together closely on these laws, and such co-operation was very useful. In addition, we referred these submissions, which we received, to all the provinces affected, so that they, working with their affected communities, would incorporate these views in their decision-making which, as the Minister said, we will hear through the NCOP when it makes its decisions tomorrow.
Our immediate task - a critical national agenda - is to facilitate the holding of local government elections throughout our country. These municipalities enter an important phase in their second term of existence, the renewal of their mandate. That is a crucial priority. That the people shall govern must be re-emphasised through these local government elections.
The people living in these communities, the 16 affected areas, but also throughout the country, will no doubt recognise the significance of ensuring that the structures of governance remain in the people’s hands. The people in these areas will take a longer-term view, will recognise the necessity of ensuring that the unity of our country is maintained, and that we are not seduced by fragmentation by default, because of where we are located geographically. This country is one country, one tax base, and we think that the work that is under way is intended to prioritise the fight against poverty and to create employment.
We would like to thank Dr Pat Rabowa, Adv Kholong and the state law advisers who supported us, Dr Vuyo Mlokoti, the chairperson of the board, as well as Mr Monare, for their help in processing this legislation.
We support the Bill. Thank you.
Mnr W P DOMAN: Agb Voorsitter, die DA steun die wegdoen met oorgrensmunisipaliteite. Dié oorgrensmunisipaliteite was gedeeltelik die gevolg van onopgeloste grensdispute in die verlede, en dié 16 oorgrensmunisipaliteite moes die gevolge hiervan dra. Maar, dit was ook ‘n doelbewuste besluit van die ANC-regering, destyds, om die lewensvatbaarheid van dié munisipaliteite te verbeter om ‘n belastingbasis te skep. Dit is ‘n eksperiment wat verkeerd geloop het, en ek is bly daar is vandag erkenning dat dit nie kan werk nie. Die een goeie doel wat dit miskien gedien het, was om ‘n brose vrede te handhaaf in ‘n sensitiewe tydperk van oorgang. Tóé, soos vandag, met al die ongelukkigheid en demonstrasies oor grense, is dit ‘n duidelike bewys van hoe sterk mense oor hul eie en plaaslike belange voel. Al hierdie gemeenskappe is tog deel van ‘n hele Suid-Afrika, maar hulle is bereid om in opstand te kom oor watter provinsie of munisipaliteit vir hulle die beste dienste sal lewer, watter dorp of streek vir hulle die beste ekonomiese moontlikhede bied, watter gesondheids- of onderwysdepartement vir hulle die beste sal bedien, en selfs watter taxi- of busroete die goedkoopste en die doeltreffendste vir hulle sal wees.
As daar dus een belangrike les is wat ons geleer het in hierdie dae dan is dit hoe belangrik plaaslike belange en omstandighede vir mense is. G’n wonder nie dat ‘n vorige speaker van Amerika, Tip O’Neill, altyd gesê het: “All politics is local.” (Translation of Afrikaans paragraphs follows.)
[Mr W P DOMAN: Hon Chairperson, the DA supports the elimination of cross- boundary municipalities. These cross-boundary municipalities were partly the result of unsolved boundary disputes in the past, and these 16 cross- boundary municipalities had to bear the consequences of this. But it was also a deliberate decision of the ANC government at the time to improve the viability of these municipalities in order to create a tax base, and it was an experiment that went wrong and I am glad that there is recognition today that it cannot work.
The one good purpose that it possibly served was to maintain a fragile peace in a sensitive time of transition. Then, as today, with all the unhappiness and demonstrations about boundaries, it clearly proved how strongly people feel about their own and local interests. All these communities are, after all, part of a united South Africa, but they are prepared to revolt about which province or municipality will provide them with the best services; which town or region offers them the best economic opportunities; which health or education department will serve them best; and even which taxi or bus route will be the cheapest and most efficient for them.
If there is, therefore, one important lesson that we have learned in these days, it is how important local interests and circumstances are to people. It is no wonder that a previous speaker of America, Tip O’Neill, always said: “All politics is local.”]
We should always remember to allow people local options and bring government as close as possible to people, and therefore never underestimate the importance of local government. Even in the municipal sphere of local government, local municipalities are infinitely more important to people than the district municipalities.
Wat ook duidelik geword het met die oorgrensveranderinge is dat sekere provinsies ‘n rekord van swak regering opgebou het, waaraan hulle dringend aandag sal moet gee. Die mense van Matatiele wil nie na die Oos-Kaap toe gaan nie, maar wil eerder in KwaZulu-Natal bly omdat hulle dink hulle kan beter dienste dáár kry.
Die mense van Kgalagadi wil eerder Noord-Kaap toe kom as om in Noord-Wes te bly; die mense van Merafong wil eerder na Gauteng toe gaan as na Noord-Wes toe; en die mense van Marble Hall in Groblersdal wil eerder in Mpumalanga bly as om na Limpopo toe te gaan waar hulle voel dat hulle nóg swakker behandel sal word. ‘n Groot uitdaging lê dus vir hierdie ontvangende provinsies voor die deur om goeie dienste te lewer aan hul nuwe gemeenskappe.
Dít bring ons by die oorgangsmaatreëls wat in hierdie wetsontwerp getref word. Dit is noodsaaklik, en met die nodige welwillendheid van die provinsies kan dit goed afgehandel word. Veral die oordrag van personeel gaan baie sensitief wees, en hier sal die verskillende provinsies wysheid aan die dag moet lê. Ons is baie dankbaar ook dat die NRVP ‘n rol kry in dié wetsontwerp wanneer daar nie ooreenkomste getref kan word nie.
Dit sou ‘n heuglike dag wees as ons sou kon sê dat al die diensleweringsprobleme in dié 16 oorgrensmunisipaliteite nou opgelos sal word. Ongelukkig was die oorgrensprobleme, naamlik dat munisipaliteite met twee provinsies se wette moes werk en dat dienste nie bymekaar aangesluit het nie, en wie watter dienste moes lewer, nie die hoof oorsaak van die swak bestuur en dienslewering in dié munisipaliteite nie.
Die Minister het daarna verwys, en hy het al die probleme in plaaslike regering, wat ons maar ook in dié munisipaliteite gesien het, gehanteer. Hulle is ook aanwesig en hulle sal moet aandag kry. Daar moet aandag gegee word aan bekwame personeel, aan goeie finansiële bestuur, sodat daar goeie dienste gelewer kan word. Maar tog, ons maak vandag ten minste een eksperiment reg wat verkeerd geloop het met hierdie wetsontwerp.
Nou, in die gees van Kersfees, wil ek nie eintlik onnodig met die Minister vir Provinsiale en Plaaslike Regering baklei nie, maar die waarheid bly dat hy sedert November 2002 geweet het dat oorgrensmunisipaliteite moet verdwyn, maar volgens ‘n verslag van die Munisipale Afbakeningsraad self – hul verslag – eers in Augustus vanjaar die raad versoek het om aandag aan dié probleem te gee. Gevolglik het die raadpleging met die gemeenskappe wat geraak word veel te wense oorgelaat. Dis oorhaastig gedoen. In sommige gevalle is daar onduidelikheid oor wat die gemeenskappe wil hê, in ander gevalle word daar teen die uitdruklike wil van die mense opgetree.
Nog erger, in Matatiele is die mense eintlik mislei en is hulle aanvanklik onder die indruk gebring dat hulle by KwaZulu-Natal gaan bly, maar uiteindelik is hulle by die Oos-Kaap ingedeel. Die Munisipale Afbakeningsraad was sy hande in onskuld, want daar word gesê hy is nie verantwoordelik vir provinsiale grense nie, en dit is eintlik reg. Minister Mufamadi en die ANC-regering dra die verantwoordelikheid vir hierdie oorhaastige proses wat gemeenskappe in opstand laat kom het, en in sommige gevalle mense laat met grense waarmee hulle hoegenaamd nie tevrede is nie.
‘n Mens kan nie die indruk ontsnap dat politieke opportunisme en, by name, stemgetalle, die finale deurslag gegee het in sekere van dié wysigings nie. En dít terwyl hierdie gemeenskappe maar net smag na beter dienslewering. Die ANC moenie verbaas wees nie as hy op 1 Maart volgende jaar dalk ‘n laat Kersgeskenk gaan ontvang van hierdie gemeenskappe wat nie so aangenaam sal wees nie. [Applous.] (Translation of Afrikaans paragraphs follows.)
[What has also become clear with the cross-boundary changes is that certain provinces have built up a record of poor governance, to which they will have to pay urgent attention. The people of Matatiele do not want to go to the Eastern Cape, but would rather stay in KwaZulu-Natal because they think that they can get better services there.
The people of Kgalagadi would rather come to the Northern Cape than stay in the North West; the people of Merafong would rather go to Gauteng than to the North West; and the people of Marble Hall in Groblersdal would rather stay in Mpumalanga than go to Limpopo where they feel that they would be even more badly treated. These provinces that are receiving these communities will therefore have to meet the great challenge of providing them with good services.
This brings us to the transitional measures set out in this Bill. They are imperative, and with the necessary goodwill of the provinces they can be properly finalised. Especially the transfer of staff is going to be very sensitive and in this regard the various municipalities will have to act wisely. We are also very grateful that the NCOP is getting a role in this Bill when agreement cannot be reached.
It would be a joyful day if we could say that all the service delivery problems in these 16 cross-boundary municipalities would now be solved. Unfortunately the cross-boundary problems, namely that municipalities had to work with two provinces’ Acts and that services did not link up, and who had to deliver what services, were not the main cause of the poor management and service delivery in these municipalities.
The Minister has referred to this, and he has dealt with all the problems in local government, which we have also seen in these municipalities. They are also present and will have to receive attention. Attention should be given to competent staff, to sound financial management, so that good services can be delivered. Even so, with this Bill we are today correcting at least one experiment that went wrong.
Now, in the spirit of Christmas, I don’t really want to quarrel unnecessarily with the Minister for Provincial and Local Government, but the fact remains that he has known since November 2002 that cross-boundary municipalities have to go, but according to a report of the Municipal Demarcation Board itself – their report – he only requested the board in August this year to give attention to this problem. Consequently the consultation with the affected communities left much to be desired. It was done overhastily. In some cases there is uncertainty about what the communities want, in other cases steps are being taken against the express will of the people.
Even worse, in Matatiele the people were actually misled and they were initially under the impression that they were going to remain in KwaZulu- Natal, but eventually they were incorporated into the Eastern Cape. The Municipal Demarcation Board disclaims any responsibility, because it says it is not responsible for provincial boundaries, and that is actually correct. Minister Mufamadi and the ANC government bear the responsibility for this overhasty process that has caused communities to protest, and in some cases has left people with boundaries with which they are not at all satisfied.
One cannot escape the impression that political opportunism and, specifically, the number of votes finally tipped the balance in some of these amendments. And this while these communities simply want better service delivery. The ANC must not be surprised if on 1 March next year it receives a belated Christmas present from these communities which will not be very pleasant. [Applause.]]
Mr P F SMITH: Chairperson, Minister, colleagues, as indicated, this Bill is in fact the flip side of the Constitution Twelfth Amendment Bill, which we dealt with in this House a month or so ago. Members will remember that it is that Bill, not this one, which deals with the determination of provincial boundaries.
You will also recall that there was much unhappiness expressed by a number of parties, ourselves included, about that Bill. In fact, we voted against it. There were disagreements about the process, about the fact that this Bill should have been introduced a long time ago, and particularly about the lack of consultation regarding the whole process. Justifiably, we believe there are a number of affected communities that continue today to be highly dissatisfied with the outcome of the Constitution Twelfth Amendment Bill process.
But, we have to live with the reality, of course. That process has left the National Assembly and it’s now with the NCOP. Depending on what they do tomorrow, that Bill will become law. This Bill, however, doesn’t deal with the same thing. It really, in a sense, gives effect to that Constitution Twelfth Amendment Bill. It doesn’t redetermine provincial boundaries. What it does is to provide for the redetermination of municipal boundaries within that framework of new provincial boundaries.
Most importantly, it also provides for a set of transitional measures to take care of the process between now and the elections, in particular; and in respect of things like dealing with assets between the provinces, liabilities, obligations and so forth. And the way this is done is actually a very positive thing. It provides for interprovincial government agreements and should there be disagreements between those provinces, an inability to reach conclusions, then the NCOP is mandated to play a positive role to facilitate some sort of agreement. And we agree with that; it’s a very positive approach.
The Bill also makes provision for the re-establishment of some of the municipalities through section 12 notices to provide for internal structural changes coming about through the new redeterminations. So, when one actually looks at the content of the Bill there is nothing contentious about it and we agree with all of it.
Of course, there is always the temptation to view these two Bills, the one before the NCOP tomorrow and this one, as a package and to say, well, that Bill was so flawed that we voted against it; this one is merely giving effect to that flawed Bill. One could justifiably argue, in fact, that the whole thing should be thrown out together as a package. There are many communities out there asking for precisely that. The communities the previous speaker referred to are justifiably upset with the process. They believe, even at this stage, that the protests and legal action may have the effect of suspending the implementation of the Constitution Twelfth Amendment Bill.
Be that as it may, at the end of the day, although we are sympathetic towards their concerns and believe that they are right and government is wrong in not having adequately listened to them, we have to judge this Bill on its merits. The merits of this Bill are such that we support it. Thank you very much. [Applause.]
Mr J BICI: Chairperson, the Bill before us is as a consequence of the Constitution Twelfth Amendment Bill of 2005, which the UDM opposed. The UDM can, therefore, based on the same principle, not support this Bill.
It seems to us that there is an unnecessary haste to effect these changes now. Why was the decision delayed and avoided for years, and now, with very little time, it is rushed through in this fashion? It is an example of not only bad governance, but also arrogance on the part of the ruling party.
The insufficient consultation and outright refusal to compromise concerning the affected communities, especially Merafong and Matatiele, speak of a government completely out of touch with the people who elected it. [Interjections.] So stubborn is the ANC in its refusal to compromise and negotiate with the affected communities that Parliament has been called back at massive expense for a special sitting in order to bulldoze this Bill into the Statute Book.
We maintain, yes, that other more elegant and consultative solutions could have been found. The UDM does not support the Bill. Thank you. [Interjections.]
Rre I D MOGASE: Ke a leboga Modulasetulo le Tona, ke batla gore rre yo o neng a bua gona jaanong o kare ga a tshela sebaka se se telele mo Aforika Borwa. [Setshego.]
Rona ba re tshetseng mo Aforika Borwa, ra sokola, ra bereka, ra lwa gore re be re thope mmuso go fitlha go tlhaga Molaotlhomo o o jana, o o monate, wa Cross-Boundary Municipality Laws Repeal and Related Matters Bill.
Re itumetse thata. Re batla gore, ba ba ntsi ba tsamaya ba ntse ba dira dilo tse dingwe, ba bangwe ba anega diblumase mo di . . . [Setshego.] (Translation of Tswana paragraphs follows.)
[Mr I D MOGASE: Thank you, Chairperson and Minister, seemingly the previous speaker did not live for long in South Africa. [Laughter.]
We who lived in South Africa suffered, worked, fought and took over the government, until the Cross-Boundary Municipalities Laws Repeal and Related Matters Bill was introduced.
We are happy. Many walk around doing many other things, others hang panties on the . . .[Laughter.]]
To me, it is an insult.
O kile wa bona moeteledipele wa lekoko a tlhoka se a se dirang? A tsaya dibluma a di bofelela? A tsamaye a ye go di lata mme ba re ga ba sa di batla. Ke ne ke le ko teng.
Fela, ke batla gore . . . (Translation of Tswana paragraphs follows.)
[Have you ever seen a leader of a party having nothing to do? Hanging up panties? He returned them and they refused to take them back. I was there.
But, I want to say . . . ]
. . . when the new Constitution of the Republic of South Africa was adopted 10 years ago, the people of this country declared that South Africa is a sovereign democratic state founded on values of human dignity, equality and the advancement of human rights and freedom.
In the past, the demarcation of provincial boundaries was centred around racial divisions.
O tshwanetse a bo a itse gore o ne a sa boute. [Tsenoganong.] Ga o nkutlwe wena o didimale. [Setshego.]
O godile. O tshwanetse a bo a tswa kwa re tswang teng a sa itse gore . . . (Translation of Tswana paragraphs follows.)
[He is aware that he was not voting.[Interjections.]You don’t hear me keep quiet. [Laughter.]
He is an adult. He is from where we come from without knowing that . . .]
. . . black people were removed from their ancestral, fertile and arable land to poor land around the country. Regarding the case of Mma Mathola, as we remember, the urban areas that black people were removed to were far away compared to Sophiatown.
Ka ditiro tse re di boneng, ka botlhale jwa ANC, re leboga mmuso, re leboga Tona gore a tle ka Molaotlhomo o o jana. [There is service delivery due to the diligence of the ANC. We thank the government and the Minister for the introduction of this Bill.]
The Demarcation Board determines and redetermines municipal boundaries at the request of the Minister for Provincial and Local Government, and at the request of the municipality affected by the proposed determination or redetermination.
Gongwe ke tshwanetse go le tlhalosetsa go le gonnye. Fa re ne re dira, ga ke dire makgakga, fela mo ke tsamaileng teng fa re ne re bua le lekgotla la teropo la Gauteng, Soweto Civic Association e buile ya re, re batla tax base e le nngwe gonne fa re dira dilaesense tsa dikoloi re ya kwa Gauteng. Tšhelete e sala kwa teng. Re dira kwa Gauteng, fa kgwedi e fela re tabogela gape kwa Gauteng re isa tšhelete eo kwa teng.
Re batla gore re tlhaloganye sentle gore Molaotlhomo o ke wa botlhokwa . . . (Translation of Tswana paragraphs follows.)
[Let me briefly explain that where I visited we had talks with Gauteng’s municipal councils and the Soweto Civic Association said that they want a single tax base in Gauteng, because they make vehicle licence applications in Gauteng. We are employed in Gauteng, every month we take the money back to Gauteng, therefore Gauteng benefits financially.
Let us understand, this Bill is important . . . ]
. . . and I would like to report that Parliament has been at the centre point of all processes around this Bill. We have consistently demonstrated our commitment on the seriousness of these processes.
O re ke tlhoile batho? Ke wena yo o neng o ntlhoile! Jaanong gompieno o nna le rona mo. E bile le lesego gonne ANC ke mokgatlho o o siameng o o rileng, a re bueng! [You said I hate people; you hated me! Here you are today with us. You are fortunate because the ANC is a good party that is committed to negotiations!]
Therefore we urge everyone in this House to accept the outcome of this Bill, as presented to us.
Lastly, Parliament will continue to work diligently with other structures to see to it that the outcome of this Bill is implemented smoothly and with the sensitivity it deserves.
Ke leboga ba bangwe ba makoko a ba ba setseng ba buile gore ba tshegetsa Molaotlhomo o. A re o tshegetseng rotlhe. Yo o reng ga a o eme nokeng, ga ke itse gore o tswa kae? Ke a leboga. [Legofi.] (Translation of Tswana paragraph follows.)
[I thank the other parties who have accepted this Bill. Let us all support it. Whoever does not support it, I don’t know where he comes from. I thank you. [Applause.]]
Mr V C GORE: Madam Chair, despite the technical nature of this Bill, it underlies a far more serious problem. The passing of this Bill, together with the associated Constitution Twelfth Amendment Bill of 2005, has witnessed protests, violence and, to a large extent, opposition by the people whom this legislation was intended to assist. This legislature has a proud record of consultation and consensus seeking, and, of course, taking Parliament to the people.
Unfortunately, we, as legislators, in our haste to meet deadlines and to rush this Bill through Parliament, have failed to achieve these ideals. Unfortunately, all that results in a growing divide between this Parliament and the people of South Africa.
One only has to witness the residents of Khutsong in Gauteng – or will it be the North West – with a sense of desperation and frustration that is beginning to brew in this country. The fact remains that name-calling and dismissing legitimate fears of communities do not address their genuine concerns.
This change of boundaries interferes with people’s sense of belonging and recognition within a specific geographical area. This arbitrary change of boundaries bedevils nation-building because these communities, remember, will express their dissatisfaction for a long time to come.
In conclusion, much needs to be done if we are to live up to the principles of participatory democracy, as enshrined in our Constitution, and achieve the Freedom Charter’s ideal that the people shall govern.
Mrs C DUDLEY: Chair, the ACDP appreciates the problems experienced in administering cross-boundary municipalities and shares the view that such municipalities have become unworkable. However, we have great concerns as to the process engaged upon. We believe that there has been undue haste and very tight timeframes in tabling these amendments, and that insufficient consultation has taken place concerning the affected communities.
Residents in a number of municipalities have demonstrated against their removal from one province and their incorporation into another. Whilst the ACDP does not condone unlawful actions, we can understand their frustrations. Their main concerns relate to the critical issue of service delivery to the poor. It is significant, for example, that the Eastern Cape receives the largest provincial allocation yet service delivery in the province is appalling.
The Municipal Demarcation Board was accused in the submissions of not embarking on an extensive, consultative and participatory process in order to investigate and make recommendations that would strengthen local government, and ensure affordable and sustainable service delivery. The ACDP is on record as having opposed the Constitution Twelfth Amendment Bill; however, we appreciate the problems. We will therefore support this technical Bill. Thank you.
Mnr P J GROENEWALD: Agb Voorsitter, as die VF Plus vir die agb Minister vra om in te meng in die buitensporige hoë salarisse van munisipale amptenare dan gooi hy sy hande in die lug en sê dat hy nie kan inmeng nie, want die Grondwet sê dat plaaslike regering ’n derdevlakregering is; ’n regering op sy eie en hy het nie die bevoegdhede om in te meng nie. Maar wanneer dit die agb Minister en die ANC pas, om politieke redes, dan is hulle bereid om die Grondwet te wysig om dan in te meng in oorgrensmunisipaliteite.
Die Minister sê dat die mense sal regeer. Hoekom gaan hy nie na die mense toe en vra wat hulle voorkeure is nie. Die werklikheid is egter, Voorsitter, dat indien die Grondwet nie gewysig is nie, ons vandag ’n tweederdemeerderheid in hierdie Raad sou moes kry om hierdie wet te aanvaar. Die Grondwet is gewysig met ’n beslissende stem van die Voorsitter – die eerste keer in die bestaan van hierdie Parlement dat die Voorsitter ’n stem moes uitbring om ’n tweederdemeerderheid te verseker. U sou nie ’n tweederdemeerderheid gekry het as die Grondwet nie gewysig is nie. Die VF Plus sal nie hierdie wetgewing steun nie. [Tyd verstreke.] (Translation of Afrikaans speech follows.)
[Mr P J GROENEWALD: Hon Chairperson, whenever the FF Plus appeals to the hon Minister to intervene with regard to the exorbitantly high salaries of municipal officials, he throws his hands into the air and says that he cannot intervene, because in accordance with the Constitution local government is a third-tier government; a government on its own and therefore he does not have the power to intervene. But when the hon Minister and the ANC find it politically convenient, they are prepared to amend the Constitution; and then to intervene with regard to cross-boundary municipalities.
The Minister says that the people shall govern. Why does he not go to the people and ask what their preferences are? However, Chairperson, the reality is that if the Constitution had not been amended, then today we would have had to obtain a two-thirds majority in this House in order to adopt this Act. The Constitution was amended with a deciding vote by the Chairperson – the first time in the existence of this Parliament that the Chairperson had to cast a vote to ensure a two-thirds majority. You would not have obtained a two-thirds majority if the Constitution had not been amended. The FF Plus will not support this legislation. [Time expired.]]
Mr I S MFUNDISI: Hon Chairperson and hon members, the repeal of the cross- boundary municipalities legislation has been inevitable from the outset. It is just unfortunate that, characteristically the ANC-led government, slow to deal with issues that affect the wealth of the people, delayed and has decided to bulldoze the repeal Bill and the amendment to the Constitution through at the eleventh hour, while it was clear in February 2002 that these municipalities had proved to be failures.
We sympathise with the plight of the people of Carletonville, but we learnt the hard way from the ANC in 1994, when they said the date for elections was sacrosanct. When people in the Kuruman area complained about being forced into the new South Africa, the late Joe Slovo told them that the ANC was breaking an egg - that was Bophuthatswana - to make them an omelette. It looks like the time has come for the people of Merafong to be told that the egg - that is Gauteng - is being broken to produce an omelette for them in the North West, “a la ANC”.
We in the UCDP have long made our discontent known regarding the cross- boundary municipalities, because of their disparity in service delivery. To us, in the UCDP, it does not matter in which province people find themselves, all we encourage is service delivery.
Our experience is that people in the far-flung areas understand and appreciate their circumstances and will be happy if services are extended to them. We in the UCDP feel that, while it is true that there was insufficient consultation on the incorporation of some towns into other provinces, political parties are equally to blame as it has been common knowledge that these municipalities were going to be disestablished.
The situation brings to mind Shakespeare’s words, through Macbeth, when he said, and I quote: “So far have I waded in blood that sitting down is as good as going forward.” Legislation and electoral preparations are too far advanced for them to be suspended without causing mayhem to the entire country, for the sake of pleasing some people.
The UCDP is of the opinion that this matter has reached the point of no return and, accordingly, supports the repeal of the cross-boundary municipalities legislation. I thank you.
Ms P BHENGU: Chairperson, hon Minister for Provincial and Local Government, hon members of Parliament, this Bill seeks to repeal all local government laws that provide for cross-boundary municipalities. As the ANC, we have characterised the past 10 years as a period of transition in which we have steadily worked to transform the institutions of our country to serve our democracy and all its people.
Local government, together with practically every other public institution in the country, has required a massive overhaul with geographic, institutional and organisational, social, economic and cultural implications. Since the democratic government took power in 1994, progress has been uneven. Great strides have been made in some areas, hence we need to have periodic checks on service delivery and remove the blockages. We have the mandate to deliver and the vehicle for realising this mandate is strong municipalities.
The ultimate goal of this process is to ensure that local government is indeed democratic, accountable and fulfils its responsibility to drive the process of service provision, development and poverty alleviation and eradication.
One of the areas where difficulties have been experienced over the past five years has been with respect to areas known as cross-boundary municipalities. Those are areas where a municipality straddles the boundaries of two provinces. The provinces that came into being on 27 April 1994, while in some sense they were products of the past, in reality were a major break from that past.
Establishing cross-boundary municipalities in these areas was considered the most appropriate way to ensure viable, integrated and effective local government within shifting provincial boundaries. However, experience over the past five years has shown that cross-boundary municipalities present administrative challenges that make it impossible to achieve constitutional obligations, with respect to local government.
We have entered into a contract to make the lives of our people better by engaging in different programmes. It will therefore be extremely difficult to deliver on the mandate of building houses, rendering health services, delivering water and sanitation, to name but a few. The budgetary implications of a municipality that falls within two provinces result in citizens not getting the services - as we heard when the stakeholders came to make representations to the portfolio committee.
Elaborating on some of the challenges posed by the cross-boundary municipalities, there are the challenges of having two different sets of legislation and funding from two provinces for health issues. These result in delays in the implementation of policy, and service delivery is hampered in the process. The integrated development programmes, IDPs, pose a challenge in terms of co-ordination and integration of programmes; and, also, priorities of two provinces are difficult to implement.
As the ANC, we will review all the programmes that are a stumbling block to service delivery. We have one mission and one mission only: to liberate our people from the chains of poverty. When the majority of our people stood in long queues they were saying, “ANC, you are the only liberation movement which will make our lives better and fast-track delivery so that we can see changes in our lives,” and that is exactly what we are doing.
The slogan of the Freedom Charter that says the people shall govern is what drives the programmes of the ANC. And this Bill is strengthening that notion and making it possible for people to participate in the local economic development of their areas. Surely, in this process, there are good lessons to be learned as there are skills and capacities of different provinces we utilise to strengthen service delivery.
The demarcation of provincial boundaries was therefore not about delimiting tribal, racial or linguistic areas, as had happened in the Bantustans in the past, but was about setting up political and administrative units of an appropriate size and capacity to meet the needs of the people living in that area.
So the ANC is committed to undo the past imbalances and that is through the interrogation of the legislation. If there are loopholes in the legislation, we will not relax and fold our arms. We will act accordingly to plug all the loopholes. We are carrying the mandate to alleviate poverty and create employment for our people, hence we are co-ordinating all our efforts as different committees to realise that goal.
We assure the people of the affected provinces that this Bill strengthens and improves the delivery of services so that we meet the millennium targets. Ngiyabonga. [I thank you].
Mr M T LIKOTSI: Chairperson, the PAC believes in the principle of a unitary state, which we fought for in our years of the liberation struggle. We must admit that there has been an oversight on our part as a liberation movement in that we did not educate the masses on the implications of a unitary state. On the other hand, we wish to state that the matter of cross- boundary municipalities was, from the onset, not well thought of; it ought to have been done differently.
We sympathise with the residents affected by this repeal Bill, especially residents of Khutsong and surrounding townships in the Merafong municipality and residents of Matatiele, who have strong reservations about their incorporation into the provinces of the North West and the Eastern Cape, respectively. We can only hope that there is still some room to revisit this matter in the near future.
The PAC wishes to advise the residents of Khutsong, Matatiele and the rest of the country not to be misled by political opportunists who encourage them not to participate in the forthcoming local government elections due to several factors, including this cross-boundary Bill.
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, your time has expired.
Mr M T LIKOTSI: Your vote is your right. [Applause.]
Mr R B BHOOLA: Chairperson, the MF acknowledges the sensitivity of the cross-boundary municipality issue, as far as many people are concerned. However, having viewed both the arguments for and against cross-boundary municipalities, we tend to lean closer to the eradication of cross-boundary municipalities and the endorsement of assigning a singular municipality for each area.
From many case studies, it is evident that the cross-boundary municipalities system often held conflicting intentions towards its areas. Further, the services in these areas were not within the standards or parameters of serving the communities at the level we would like them to be.
It is also evident that much dissatisfaction has been expressed by municipalities concerning the eradication of cross-boundary municipalities as well as residents affected by the eradication process in municipalities. The MF feels it is incumbent upon all members of the House to bring reassurance to our people that their best interests are always of paramount importance when such decisions are made.
Further, confidence in municipality delivery needs to be boosted. Our municipalities need to shape up for service delivery. The MF supports the cross-boundary municipalities Bill. Thank you.
Mr M DIKO: Chairperson, we should take into account that it is the people who are affected and not just the boundaries. The interests of different provinces and municipalities are also involved, and therefore we must deal with this issue in a very sensitive manner. We would do well to admit, at the onset, that what we are debating here today has caused a lot of unhappiness to the affected communities and municipalities.
The demonstrations by the community of Khutsong Township in the Merafong municipality and their contemplated Constitutional Court challenge to this Bill clearly demonstrate that something is fundamentally wrong. The UIF believes that the redemarcation process of 1999, before the 2000 local government elections, is the source of the current problems we are facing today.
We should also not forget that this demarcation process by the Demarcation Board, headed by Dr Mike Sutcliffe, was not as inclusive as one would have envisaged. The UIF will not support the Bill. [Time expired.]
Mr S SIMMONS: Madam Chairperson, once again, the people’s party has changed like a chameleon that no longer consults its people. Even its tripartite partners, the SA Communist Party and Cosatu, have initiated a campaign against the government decision to incorporate the Merafong local municipality into North West. Its community believes that it will get better service delivery due to the fact that Gauteng province is much better equipped to provide a high standard of service delivery.
It must be remembered that Gauteng province was initially opposed to this move by the national government, but had to eventually give in to political pressure by the government. The rejection of the proposed incorporation of Merafong into North West province will threaten to cause a constitutional crisis.
The same applies to the other 17 municipalities in the provinces, like Mpumalanga, KwaZulu-Natal and the North West. The people no longer govern. I thank you.
Mr L M GREEN: Chairperson, for any government, the process of ensuring that the boundary of a municipality does not cross the boundary of another province is a difficult and sometimes very technical one.
Irrespective of what decision government takes to get rid of cross-boundary municipalities, the decision will either be welcomed by some or heavily criticised by others. It is understandable that government would want to reduce cross-boundary municipalities in order to effect more efficient service delivery.
However, government must be sensitive to the concerns raised by the citizens of affected towns. A case in point is Matatiele, where the citizens of this town took to the streets when they became aware of their possible transfer from KwaZulu-Natal to the Eastern Cape. The mayor of Matatiele made the following interesting comments on the issue, and I quote: “Pietermaritzburg is 700km from us while Bisho is only 200km away, and everyone knows that the further you are from the seat of government, the worse the service you get.”
This is exactly the point I wish to raise. On the one hand you have the sentiments of the community which, of course, for historic reasons wants to remain part of KwaZulu-Natal. On the other hand you have the mayor arguing that Matatiele would benefit greatly if it becomes part of the Eastern Cape because it is much closer to Bisho. This is clearly a case of “you are damned if you do and you are damned if you don’t”.
The formal proclamation of the local government elections cannot go ahead unless the final municipal demarcations have been made. The passing of this Bill is therefore essential to the continued process. The FD wants the process to be finalised. We, therefore, support this Bill.
Mme L M MASHIANE: Ke a leboga Modulasetulo, ke rata go simolola ka go le dumedisa lotlhe. A lo a mpona? Go na le selo se se botlhoko mo botshelong jwa motho. Se bidiwa phetogo. Phetogo e botlhoko ga e monate, mme diphetogo di tshwanetse go nna teng. Re rata kgotsa re sa rate; di le monate kgotsa di le botlhoko; di tshwanetse go nna teng. Ke se re mekamekaneng le sona gompieno. Go tlisa diphetogo.
Jaaka mokgatlho o motona wa ANC, fa re ne re tsena mo tokologong re simolola go e lwela, re ne re sa lwele Aforika Borwa e e nang le dikhutlhwanakhutlhwana. Re ne re lwela Aforika Borwa e le nngwe e e tla buswang ke rona rotlhe, mme ke rata gore . . . (Translation of Tswana paragraphs follows.)
[Ms L M MASHIANE: Thank you, Chairperson. I will first start by greeting you all. Can you see me? There is this painful thing in the life of a human being; it is called transformation. It is bitter, not enjoyable, but changes have to be made. Whether we like it or not; irrespective of whether it is bitter or sweet; it has to be done. This is exactly what we are doing today, effecting changes.
The ANC is a majority party, and during the early stages of democracy, when we were fighting for this democracy, we were not fighting for a divided South Africa. We were fighting for a united South Africa, which would be governed by all of us. I would like to say . . .]
We will continue to say, “The people shall govern.” Hon Chairperson, Minister for Provincial and Local Government, hon members, ladies and gentlemen, you, Mr Doman, have had your say. You must shut up now; it is my turn. [Applause.] The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, may I interrupt you. I cannot call “shut up” unparliamentary, but I do think we have heard this term a few times. Perhaps, we should consider using something else that would be as good and less offensive.
Ms L M MASHIANE: Chairperson, I withdraw, but Mr Doman must give me a chance to speak because he got his chance to speak. There is deliberate agitation taking place on the ground – deliberate because we are facing local government elections. It is deliberate. These so-called problems, which have been mentioned here by the speakers, are just a mere agitation so that there is some hype and people will say that they are not going to vote, but the people will vote.
When the ANC was established it envisaged a united, democratic, nonracial and nonsexist South Africa; a unitary state where a Bill of Rights guarantees fundamental rights and freedoms for all on an equal basis; where our people live in an egalitarian and tolerant society; where the organs of state are representative, competent and administratively fair in their functioning; and where opportunities are progressively and rapidly expanded to ensure that all may live under conditions of dignity and equality.
When we speak of a united South Africa we have in mind, in the first place, territorial unity, and a single, nonfragmented entity which also includes our municipalities. We speak different languages but we are all South Africans. We may have municipalities and provinces but we are South Africans, united in our diversity.
As the ANC, we have acknowledged that since 2000, local government has undergone fundamental changes. We are aware that significant challenges still remain and require a process of review and improvement. We are not shying away from that, we are saying it must take place.
We want to ensure that local government is indeed democratic and accountable, and that it fulfils its responsibility to drive the process of service provision, development and poverty alleviation. We have noticed that one of the areas that present challenges in the distribution of services is the area of cross-boundary municipalities. It is within this context that we have decided to do away with the cross-boundary municipalities.
We all know that these municipalities present serious administrative challenges. This process must be seen as an implementation of our conference resolution that we took in Stellenbosch. We said then that we need to review the cross-boundary municipalities, with a view to ensuring that areas demarcated as such remain integrated units but fall within one province. Central to this review is the key area of delivery and finding instruments for the realisation of sustainable development.
Through this process, we are not by any means taking away service delivery. Actually, the affected communities are now at an advantage in that they will now be serviced by a delivery structure they can recognise and relate to, with dedicated support.
I am saying this, informed by the press release that was made by Comrade Joel last week that Merafong will be at an advantage as it will be serviced and get more funding in order to address the problems. It will be serviced by both areas. What is the problem?
This Bill cannot be seen in isolation but must be seen within the context of the Constitution Twelfth Amendment Bill. We then need the help of the affected communities in support of these changes.
Re a lekopa lona ba lo leng kwa gae gore le tshegetseng diphetogo tse re di dirang tse. Le se ke la di lwantsha gonne, kwa bofelong, di ya go le thusa di le tswela mosola. [Legofi.] (Translation of Tswana paragraph follows.)
[We plead with you, those who are at home, to support the changes we are making. Don’t fight them, because ultimately it is going to assist you and be to your advantage. [Applause.]]
Community voices in municipal decisions must be evident in transferring ownership to the people. We are all aware that, at the time of the demarcation of the current local government boundaries, cross-boundary municipalities were set up in some areas to ensure viable, integrated and effective local government without shifting the existing provincial boundaries.
Ke itse gore goreng ba gana go fetoga. Ba gana go fetoga gonne ba itiretse lefatshenyana la bona, ka fa, mo lewatleng. Ke ka moo ba sa batleng diphetogo. [I know why they are against the changes. They are against them because they have made a land of their own, this side of the coastal areas. That is why they are against transformation.]
However, in the past five years, we have witnessed that cross-boundary municipalities present administrative challenges. They make it difficult for government to provide services to communities in an equitable and sustainable manner.
E tla go thusa mme Pandor. [It will assist you, Mrs Pandor.]
Cross-boundary municipalities make it difficult for government to promote integrated social and economic development, and make it difficult to ensure effective local government.
Ministers, this thing is going to help you. We are all aware that all these challenges made it difficult for certain municipalities to discharge their assigned powers and functions. Now, the advantage of today’s process is that communities are assured of a single provincial government, which will have one budget and service delivery programmes. It will be clear from this process that service delivery will consequently be faster and of a better quality. We are simply saying that one municipality and one province could work better.
Since this process has the support of the ANC, it will be important to guard against those who intentionally want to confuse our people. This is to ensure an outcome that serves the interests of all the people, regardless of where they live. Let us avoid mass actions.
Ke lekopa gape lona kwa gae, a re tileng go nna mo megwantong re fiwa madi ke batho ba ba senang difatlhego. Ba lo romela kwa pele bona ba setse kwa morago. Ba lo naya tšhelete ba re tsamayang lo dire toyi-toyi, bona ba setse kwa morago. (Translation of Tswana paragraph follows.)
[I am making this plea again, directed to those who are at home; let’s avoid taking part in mass actions; getting funds from faceless people, giving you leadership whilst they are behind the scenes; giving you funds, saying, “go and toyi-toyi”, whilst they are behind the scenes.]
At the end of the day, they disadvantage you. Mr Doman, you had your chance. We should all note that provinces, like municipalities, are nothing more than units for organising government work and holding government accountable to the masses of our people. [Interjections.] I am right, yes.
The committee dedicated a significant amount of time to this Bill, including listening to the people. Public participation did take place. The ANC supports this Bill and we are passing it today. [Applause.]
The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Madam Chairperson, allow me, firstly, to thank all the hon members who participated in this debate. I want to extend a special word of thanks to the chairpersons and members of the Portfolio Committees on Provincial and Local Government, and Justice and Constitutional Development.
I must also thank all the MECs responsible for local government affairs for their co-operation throughout the process leading up to this day. Also, I want to say thank you to the officials from the Departments of Provincial and Local Government, and Justice and Constitutional Development for giving so lavishly of their time to make this a reality.
I note for the record the criticisms added by Messrs Doman, Smith, Likotsi and Simmons. All these hon members clearly lack the equipment for remembering things past. [Laughter.] The laws, which this Bill seeks to repeal, are not the sole property of the ANC’s so-called failed ANC experiments. These laws were enacted by this House at a moment in history when all of us in the House attached a particular weight to the imperatives of political inclusivity.
Some have even erroneously referred to this as a technical Bill. This Bill is very political. If there is one thing to which the ANC must plead guilty, it is the fact that it is magnanimous. Otherwise, if ANC preferences were to be the only determinant, there would have been no cross- boundary municipalities in the first place. [Applause.]
It is convenient, expediently so, for hon members to resort to predictable pro forma criticism of government. But, what you don’t realise is that this underscores the fact that, as hon members, supposedly, you are unable to rise above your parochial self when dealing with matters of national importance. [Interjections.] You are setting an example that no one out there in society will be advised to emulate - on the contrary.
I wish, once more, to thank everybody who made a sensible contribution to this debate. Thank you. [Applause.]
Debate concluded.
Bill read a second time (Freedom Front Plus dissenting).
EDUCATION LAWS AMENDMENT BILL
(Consideration of Bill, as amended by NCOP, and of Report thereon)
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move:
That the Bill, as amended, be passed.
Motion agreed to.
Bill, as amended, accordingly passed.
NATIONAL CREDIT BILL
(Consideration of Bill, as amended by NCOP, and of Report thereon)
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move:
That the Bill, as amended, be passed.
Motion agreed to.
Bill, as amended, accordingly passed.
The House adjourned at 12:35. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
THURSDAY, 17 NOVEMBER 2005
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Finance
a) Report and Financial Statements of the Government Employees Pension
Fund (GEPF) for 2004-2005, including the Report of the Independent
Auditors on the Financial Statements for 2004-2005 [RP 45-2005].
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Trade and Industry on the National Credit Bill [B18D - 2005] (National Assembly – Section 76), dated 16 November 2005:
The Portfolio Committee on Trade and Industry, having considered the subject of the National Credit Bill [B 18D - 2005] (National Assembly - Section 76), referred to it and classified by the Joint Tagging Mechanism as a Section 76 Bill, reports that it has agreed to the Bill.
-
Report of the Standing Committee on Private Members` Legislative Proposals and Special Petitions on the proposed Admission of Advocates Amendment Bill, dated 15 November 2005:
The Standing Committee on Private Members` Legislative Proposals and Special Petition, having considered the proposed Admission of Advocates Amendment Bill, submitted by Adv HC Schmidt and referred to the Committee, having consulted with the Portfolio Committee on Justice and Constitutional Development recommends in terms of Rule 235(4) that permission not be given to the member to proceed with the proposal.
Report to be considered.
-
Report of the Portfolio Committee on Education on the Education Laws Amendment Bill [B 23D – 2005] (National Assembly – Section 76), dated 16 November 2005:
The Portfolio Committee on Education, having considered the subject of the Education Laws Amendment Bill [B 23D – 2005] (National Assembly – Section 76), referred to it and classified by the Joint Tagging Mechanism as a Section 76 Bill, reports that it has agreed to the Bill.
-
Report of the Portfolio Committee on Public Enterprises on the Parliamentary Network on the World Bank Conference, 21 to 23 October 2005, Helsinki, dated 16 November 2005:
The Chairperson of the Public Enterprises Portfolio Committee, Mr Yunus Carrim, having attended the Parliamentary Network on the World Bank Conference, from 21 to 23 October, in Helsinki, Finland, reports as follows:
A. “Beyond the Year of Development: What Now?”
-
The Chairperson of the Public Enterprises Portfolio Committee, Yunus Carrim, was invited to attend the Annual Conference of the Parliamentary Network on the World Bank (PNoWB), held in Helsinki, Finland, from 21 to 23 October. At a meeting of the Portfolio Committee on 7 September 2005 it was decided that the Chairperson should attend the conference.
-
The PNoWB defines itself as ‘an independent association of some 800 MPs from 110 countries. Established in 2000 and governed by a nine- member board of parliamentarians, PNoWB mobilises parliamentarians in the fight against global poverty, promotes transparency and accountability in international development and offers a platform for policy dialogue between the Bank and parliamentarians”. PNoWB sees itself as “an action-oriented network of parliamentarians”. PNoWB activities are supported by, among others, governments, the World Bank, the United Nations (UN) and the International Monetary Fund (IMF).
-
The theme of the conference was “Beyond the Year of Development: What Now?” It came after the July G8 “development summit” in Gleneagles and the September United Nations World Summit in New York, and before the next round of the World Trade Organisation (WTO) Ministerial Meeting in Hong Kong in December.
-
This “Year of Development” has “presented an unprecedented opportunity to mobilise political support behind efforts to reach the Millennium Development Goals”, said the organisers of the Conference. The objectives of the Conference were to “identify what parliamentarians can do to promote action on pressing development issues, and to help strengthen the accountability and transparency of international financial institutions”.
-
About 200 MPs from 90 countries attended. Other participants included officials from the World Bank and other multilateral institutions, technical experts, academics, the private sector, civil society representatives and others.
-
The range and calibre of speakers, some connected with the Conference through video link, was very impressive. Among the key speakers were Susilo Yudhoyono, President of Indonesia; Paul Wolfowitz, President of the World Bank; Pascal Lamy, Director General of the World Trade Organisation; Erkki Tuomioja, Minister of Foreign Affairs of Finland; and Mary Robinson, former President of Ireland and currently the Director of Realising Rights: The Ethical Globalisation Initiative.
-
Among the topics discussed, often in parallel sessions, were: • Reducing greenhouse gas emissions and poverty • Designing and implementing Poverty Reduction Strategies • Beating Back the HIV/Aids pandemic • Implementing Debt Relief • Strengthening parliaments role on development and global issues • Addressing global inequality • Realising good intentions in Africa (Implementing NEPAD - New Partnership for Africa’s Development - and G8 commitments) • Improving governance and fighting corruption • The IMF’s Medium-Term Strategy • Microfinance: building inclusive financial systems • Mobilising science for development • Reporting on Pakistan’s devastating earthquake • The World Bank and parliamentarians
- There were various round table discussions including on making aid more effective, promoting a pro-poor outcome of the Doha development agenda at the WTO Hong Kong Ministerial Meeting; the role of MPs beyond the “Year of Development”; and the role of the PNoWB.
-
There were regional sessions organised as well along the following lines:
• Sub-Saharan Africa • Middle East and North Africa a. Europe and Central Asia b. South Asia c. East Asia d. Latin America and the Caribbean e. Donor countries
-
-
The Conference also served as the PNoWB’s general assembly. A progress report since the last conference in 2004 was tabled and a new Board was elected.
B. World Bank Relations with MPs
-
The World Bank is owned and governed by 184 countries. In 1944 the representatives from the Bank’s founding countries decided that the organisation would deal with its member states through their finance and development ministries only and focus on economic matters only. A section of the Articles of Agreement, the international treaty that established the World Bank, stated: “The Bank and its officers shall not interfere in the political affairs of any member”.
-
In view of the tremendous changes in the global economy since then, and the pressure from parliaments, civil society organisations, academics and others for the World Bank to be more open, transparent and accountable, the Bank has increasingly begun to accept that its interpretation of the above section of the Articles is too narrow. The Bank has begun, over the past five years or so, to expand its relations with MPs, parliaments, civil society organisations and other stakeholders.
-
The Bank says that its relations with parliamentarians have certainly expanded in recent years. It contextualised this. “First, the world has seen an explosion in the number of electoral democracies, from 66 in 1987 to 121 in 2003. The growth of civil society is equally spectacular; companies, grass-root organisations, campaign groups, trade unions, elected officials and academics have joined governments on the international stage as agenda setters and decision makers. This is the second big transformation. The third trend relates to how development assistance is carried out. Experience has shown that policies and projects to reduce poverty are most effective when priorities are set by countries receiving the aid – based on broad consultations – rather than by donors.”
-
The Bank, according to its “Issue Brief” on “The World Bank and Parliaments”, believes that “well functioning parliaments promote development and the rule of law. Engaging elected representatives on development issues and strengthening the capacity of parliamentary institutions are important objectives of the World Bank”.
-
The “Brief” notes that “in developing countries, parliamentarians can be agents of change. They represent their constituent’s needs and views, and can contribute to designing and overseeing implementation of World Bank-financed projects. Legislators can champion social and economic reforms, speak out on HIV/AIDS, take on corruption. In many countries, Bank projects are subject to parliamentary approval directly, through ratification, or indirectly through budget approval. In some cases, parliamentarians create debate and pass new legislation linked to World Bank-supported reform programmes.”
-
The “Brief” notes further that in countries providing development assistance, “parliamentarians can be advocates for development. They debate and approve foreign aid budgets, shape and review development policies and promote coherence across policy areas. In a progressively borderless world, parliamentarians exercising their oversight role are paying more attention to matters handled by multilateral organisations. The World Bank is the world’s single largest external funder of development programs as well as an important source of knowledge and advice on how to tackle global issues such as international trade, poverty, HIV/AIDS, corruption, and climate changes.”
C. Some Key Issues Raised at Conference
1. An aspect of the Conference certainly seemed to be an attempt by
the World Bank to consolidate and expand its links with MPs. In
his keynote address to the Conference, World Bank President, Mr
Wolfowitz, said ‘As World Bank President, I intend to build on the
partnerships that the Bank has already established with
parliaments around the world. Their oversight role has an
important bearing on the mission to fight poverty. Across the
world, parliamentarians monitor public resources and provide a
crucial link between the World Bank and the local communities in
both developing and developed countries.” He said it was vital
that MPs asked tough questions and ensured that pressing
development issues are placed on national agendas.
2. A major theme of the Conference, as explained above, was the role
MPs could play in ensuring that the Millennium Development Goals
(MDGs) are achieved. Overall, the concern was how we could use our
positions and parliament as an institution to fight poverty, and
how we could mobilize our constituencies to do so too.
3. Much of the stress of the Conference was on sub-Saharan Africa.
The World Bank President said too: “I have said often – and I am
prepared to say it many times – I think the situation of sub-
Saharan Africa is not acceptable. It has to be the first priority
of the World Bank; but it’s not something that the World Bank or
development community can do unless there is leadership in Africa
ready to take on the challenge of reducing poverty in Africa. And,
increasingly, I find leaders and governments, including the
parliaments, stepping up to that challenge, and that makes me
hopeful about the future of sub-Saharan Africa”.
4. A parallel session was devoted to “designing and implementing
Poverty Reduction Strategies.” MPs from sub-Saharan Africa
complained that they are often excluded from having a say in the
PRS process (PRSP). All the participants stressed the need for
parliaments to become more involved in monitoring and implementing
the PRSP. There was also a focus on how civil society
organizations might become involved – but this discussion was not
taken far enough. Among the key suggestions which emerged from the
discussion were the following:
• MPs need to be fully conversant with the PRSP of our relevant
countries.
• Developing countries rather than the donors should mainly shape
the PRSP.
• The relevant parliamentary committees, and parliaments as a
whole, need to become involved with the PRSP.
• Those parliaments more actively involved in PRSP should assist
parliaments in their neighbourhood.
• The World Bank should approach PRSP in a ways that are conducive
to the participation of parliaments.
• MPs need to develop the skills to become effectively involved in
PRSP.
• More field visits should be encouraged.
5. There was also a specific session on “Ensuring Accountability: How
to Strengthen the Parliamentary Voice on Development and Global
Issues”. Most MPs felt that the governments of their countries
were not keen that their relations with the World Bank and other
multilateral institutions and the decisions they take through
these relations be subject to the scrutiny of parliaments.
Governments do not feel comfortable with parliaments having a
meaningful say on global and development issues. A few MPs
suggested that the World Bank itself must take some responsibility
for this, because of the way they have related to governments.
Most MPs felt that it is difficult to engage effectively on global
and development issues because of their complex and technical
nature. MPs lacked the skills, and there was inadequate research
and other support for us to be effective. However, overall, more
recently, there has been a slight improvement in the levels of
participation of parliaments in global and development issues.
There are also the World Bank Institute and other education and
training programmes designed to assist MPs in this regard. Among
issues raised were the following:
▪ The effective use of the role of parliaments in approving
budgets.
▪ The key role of Finance committees in parliaments.
▪ The need for greater co-operation between parliamentary
committees.
▪ The specific role of women MPs in development issues.
▪ More effective oversight of World Bank-funded projects.
▪ The mobilization of the public through public hearings,
constituency meetings and other forms.
▪ The need to intensify the current education and training
programmes for MPs and improve the research and technical
support given.
▪ More effective co-operation of MPs from the donor countries
with MPs from developing countries.
▪ The need to avoid “donors crowding out the policy space”.
▪ The more effective tackling of corruption by parliaments.
▪ A possible role for parliaments in considering draft lender
documents.
6. The importance of developing infrastructure in developing
countries was stressed in several sessions. 40% of the World
Bank’s lending is to be for infrastructure. There was a lot of
interest in the massive infrastructure roll-out planned by Eskom
and Transnet in this country, especially during informal exchanges
with participants.
7. Among the many other issues dealt with, mainly in sessions
parallel to those this participant attended, were the following:
▪ The extent to which inequalities actually limit the
possibilities of growth, and the need for this reason too –
economic sense – to significantly reduce inequalities.
▪ The need for strong democratic institutions, including
parliaments, for economic growth.
▪ The crucial need to ensure gender equity and the valuable role
of women in development issues.
▪ The need to ensure that NEPAD is effectively implemented and
the G8 and other commitments to Africa are fulfilled.
▪ The need to understand the impact of HIV/Aids and more
effectively tackle it to ensure growth and social development.
▪ The importance of cross-country regional development.
▪ The need to avoid conflicting messages and proposals between
the World Bank and other multilateral institutions.
▪ Issues of “donor fatigue” in developed countries and the
accountability of MPs in these countries to their electorates
for support given to developing countries. The need for MPs
from different donor countries to co-operate more on donor
support to developing countries.
8. President Yudhoyono of Indonesia offered a very inspiring speech
on the need for all the countries to work together to tackle
poverty, and he stressed the importance of achieving the
Millennium Development Goals.
9. Mr Lamy of the WTO dealt with the challenges in getting
agreement at the WTO Ministerial Meeting in Hong Kong in December.
“There was mountains of work and very little time to do it”, he
said. He said that there was “some progress” in agriculture but
the parties were “too far apart on market access.” “We need to see
movement on this issue for the rest of the topics to fall into
shape.” He was very cautious about the prospects of success in
Hong Kong, and was concerned that if there was not enough progress
in December, there would be very little chance that the round
finishing in 2006 will achieve anything at all. “Then, the trade
agreements of 10 years ago will have to apply”, he said. D. Some Overall Observations
1. The Conference was certainly valuable. There were too many parallel
sessions, and it was difficult to choose which to attend. There was
no effective report-back from the separate sessions to the plenary.
But the Bank is to produce a report on the whole Conference
shortly, which will give a fuller sense of the Conference as a
whole.
2. Perhaps the nature of the PNoWB and the Conference does not easily
allow for it, but it would have been more useful if a concrete
programme of action, even if in a limited form, had emerged to
guide MPs on how to take issues forward. Beyond the general
proposals, where exactly we go from here and how we monitor
progress is not clear enough.
3. While it is clear that MPs from developing countries lack certain
skills and have very inadequate research and other support, we can,
certainly, do far more than we are doing in respect of our
oversight responsibilities on global and development issues. We
need to display greater political will!
4. There was not enough focus on mobilising civil society, and the
relationship of parliaments to this. MPs seemed unduly cautious
about engaging with civil society. Yet civil society is such a key
actor!
5. PNoWB is seeking to become more decentralized. The Africa chapter
is encouraging the formation of regional structures, including one
in Southern Africa. This seems an obvious next step.
6. The World Bank seems very keen to extend its co-operation with MPs
and parliaments. At some stage our parliament might want to address
this issue formally and decide what links we think are appropriate?
-
Report of the Portfolio Committee on Public Enterprises on the “International Legislative Drafting Institute” programme, 11 to 25 June 2005, New Orleans, United States Of America, dated 16 November 2005:
Member of the Public Enterprises Portfolio Committee, Mr TJ Louw, having attended the “International Legislative Drafting Institute” programme, in New Orleans, in the United States of America, reports as follows:
A. Introduction
1. The Public Enterprises Portfolio Committee was invited to send a representative to take part in the ‘International Legislative Drafting Institute” programme , organised by the Public Law Centre, a joint venture of the Loyola and Tulane Law Schools, in New Orleans from 11 to 25 June 2005. The course is directed at MPs, legal drafters, government officials, NGOs, academics, journalists and others. 2. The Public Enterprises Portfolio Committee decided that I should attend. -
36 participants from 13 countries attended.
-
Among the topics we dealt with were the following:
▪ Systems of government and legislatures
▪ Enhancing public participation
▪ Plain language drafting
▪ Ethics and Politics of Drafting
▪ Technical aspects of drafting
▪ Billingual and Multilingual drafting
▪ Negotiating skills in the legislative and administrative process▪ International Trade Agreements
▪ Technology Marketplace
▪ Public finance legislation
Differences Between Parliamentary and Presidential Systems
1. Legislative drafting is probably the most difficult form of legal drafting. The basic problems are the same as legal drafting, but legislative problems are technically more complicated and socially more important. The drafter’s job is to help the legislator do what is wanted in a way that will work as smoothly as possible. The drafter’s effort begins when called upon to express in a very specific way substantive ideas which are often less than completely formed when the request is made. Legislative research, complete familiarity with the subject matter, and clear understanding of the situations to be remedied and of the purpose to be accomplished will go a long way toward the enactment of satisfactory laws. 2. The first session dealt with the difference between ‘the parliamentary system and state federal (bicameral) legislative enactment procedures, how they relate to the drafting process, and what can be learned by a comparison of the two approaches. 3. In a parliamentary legislative system, the drafting of laws is situated in each ministry. Every ministerial department employs its own legislative drafters, what we call state law advisors. The Minister will propose a certain law to the cabinet and after cabinet’s approval, the Minister will then take or discuss the proposed law with the state law adviser who will then start the drafting process. Every ministry will have its’ own drafters who will only be responsible to draft and interpret laws for that individual department or ministry. 4. The state federal legislative system has drafting offices for the state, which are not attached to any specific department or ministry. In a federal system, a member of the public proposes certain legislation to the legislator, and from there, the legislator take the proposed legislation to the drafting office for the drafting process to start. One drafter can draft legislation for two different legislators at the same time without them knowing. At times one of those legislators is from the opposition side. A strict code of confidentiality is always adhered to throughout the drafting process. When the drafting is completed, and is in a bill form, the legislator who proposed the bill to the drafters will then act as a sponsor of the bill in the legislature.C. Visit to the Louisiana Legislature
1. The delegation had the pleasure of paying a visit to the Louisiana legislature. The purpose of the visit was to get first hand experience of the federal legislative system in practice. What I observed in the senate and the state federal, as compared to our parliamentary system, is that their system is more open to the public. The public can talk to their representatives while the session is on. 2. Another observation is that a senate committee can pass more than ten bills on a particular day. Their public representative’s work only for three months in a year and the legislatures goes into recess and the public representatives go back to their private jobs. 3. In our parliamentary sessions, were there is sometimes noise and heckling and were the Speaker is forced to call the House to order is nothing compared to the legislature sessions in the state federal system. Their sessions are noisy and chaotic. Members talk loudly on their mobile phones, walk up and down in the house, the Speaker of the legislature holds private discussions, and everything is loud. The only person paying attention to the proceedings is the person who is supposed to ask a question or who is interested in what the speaker on the podium is saying, unlike in our sessions were the decorum of the house is continuously emphasised. 4. Our visit to the legislature was disappointing and we felt that there was not much to learn.D. Plain Language Drafting
1. In this session, we were taken through the process of drafting legislation by using plain and unambiguous language. Legislative, unlike legal, drafting which is meant primarily for lawyers and learned people, should be accessible to the ordinary people on the streets. An average person must be able to understand it because it is meant to address problems that are experienced by ordinary people. It will also help to strengthen our democracy because the majority of people will not have to rely on lawyers to help them interpret and apply laws that are meant to help them. 2. A document is in plain language if users can: - Find what they need - Understand what they find - Use what they find to meet their needs. 3. While it is important to draft laws in plain language, it is also equally important that the principle that everyone is charged with knowledge of the law must not be lost sight of, and the least that legislatures can do is to write the statutes in such a manner that everyone of average will understand. 4. Other topics covert in this section were: regulatory drafting, which covered topics like the use of tables and graphic presentations, tabulations, provisos and conditions, type-size, boldface and italics and staggered indentation of paragraphs.E. The Ethics and Politics of Legislative Drafting
1. The evolution of every bill is politically influenced, from the conceptual to adoption and finally the implementation stage. In a parliamentary system of government, the evolution of a law starts from the political party’s campaign promises. At every step in the evolution of a bill, the drafter’s personal and political agendas exert an unavoidable influence on the conceptual aspects. Not only does a drafter’s “political agenda” influence priorities, but personal considerations may also infiltrate the drafting process. Thus, it is very crucial for the drafter to understand the political agenda or campaign promises of the ruling party and the ministry that he or she is working for. Seldom will the proponent for whom the drafter is preparing legislation or a rule have more than a rough idea of what it should include. Even less likely, will the proponent have thought out its details. 2. It is also important to note that legislative drafters do not operate in a political vacuum. The legislative process and its essential derivative, the drafting process, are inherently political in nature. The choices made within such a context are inescapably political, advocacy choices. Legislative drafters are all ways confronted by the same question and one with obvious ethical and political implications is, “How much is to be left to the drafter’s discretion?” The answer depends to a considerable extent on how aggressively a drafter probes the client for guidance on this question. The drafter who less frequently inquires about the client’s desires will have greater latitude to exercise discretion and accordingly can play more of an advocacy role in shaping legislation. Such a situation has unfortunate ethical implications, tending to undermine two important and related professional responsibilities: the unscrupulous drafter who does not explain matters sufficiently to let the client make informed decisions not only subverts the ethical obligation to consults with clients, but also sidesteps a second duty - to “abide by a clients decisions concerning the objectives of representation”. The drafters should also bear in mind that when they draft laws they should eliminate gender-based biases.F. Accuracy, Clarity and Precision of Legislation
1. Accuracy is “the degree to which the proposed instrument expresses what the client intends it to express”. A propose ordinance, for instance, is “accurate” when it “moves in the direction intended by the client, and it is no more nor less general, and no more nor less vague, than is required by the considerations of substantive policy. Accuracy (the expression of the client’s will) should always be the objective of the principled legislative drafter”. 2. Clarity and precision are not “mere ‘technical’ matters to be determined by the drafter alone in accordance with the dictates of good legislative drafting practices”. The degree of clarity or precision in a draft can have substantial political implications. 3. There are often good reasons, political or tactical, sometimes more easily appreciated by the politician than by the lawyer, but in many cases very sound and cogent, against the adoption of counsels of perfection urged, and properly urged, by the draftsman from the legal point of view. The legislative drafting personnel who are lawyers have a dual ethical obligation - to the representation of a client and to the fair administration of the justice system, and these may sometimes conflict.G. Valuable Study Tour
-
The study tour was an eye-opener for me. At first, I found the course a bit difficult, but I soon adjusted, and began to participate more actively. I have learned a lot from this course. I now understand much better what is going through the mind of a drafter, and, most importantly, how I must relate to and interpret laws that come before me. The course is a must - especially for members of parliament who are not drafters themselves but who always have to rely on the advice of the state law advisors.
-
If there is any criticism, it is that the course is too American- centred. It should reflect greater diversity, especially as many of the participants come from developing countries.
-
It was also a good cultural experience to be exposed to New Orleans for two weeks. It was sad to hear about their flood disaster.
-
I would strongly recommend that the Committee arranges for other members to also attend the course.
-
-
Report of Portfolio Committee on Social Development on Filling of Vacancies on the Central Drug Authority, dated 16 November 2005:
Scan and Insert Report – From pages 2958 - 2969
WEDNESDAY, 23 NOVEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces The Speaker and the Chairperson
-
Draft Bill submitted in terms of Joint Rule 159
1) Road Traffic Amendment Bill, 2005, submitted by the Minister of Transport on 29 October 2005. Referred to the Portfolio Committee on Transport and the Select Committee on Public Services.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
-
Report of the Joint Monitoring Committee on Improvement of Quality of Life and Status of Women on Office on the Status of Women contained in the Report and Financial Statements of Vote 1 – The Presidency for 2004- 2005, including the Report of the Auditor-General on the Financial Statements of Vote 1 for 2004-2005 [RP 191-2005], dated 11 November 2005:
The Joint Monitoring Committee on Improvement of Quality of Life and Status of Women, having considered Office on the Status of Women contained in the Report and Financial Statements of Vote 1 – The Presidency for 2004-2005, including the Report of the Auditor-General on the Financial Statements of Vote 1 for 2004-2005 [RP 191-2005]: referred to it, reports that it has concluded its deliberations thereon.
The following points were considered:
The Beijing + 10 Report referred to, was not sent out for discussion to the relevant stakeholders prior to its presentation to the meeting in New York. The Committee was not given the opportunity to discuss, comment on and/or adopt the Report. To its knowledge, the Committee is not aware that there has been a report back by the Office of the Status of Women to stakeholders.
In the spirit of consultation and participation, that the government is committed to, the Committee would like to recommend that the 10-year National Action Plan for Gender Mainstreaming, be opened up for broad discussion, in all the provinces, before Cabinet/the government adopts it.
The National Policy Framework on Women’s Empowerment and Gender Equality, adopted in 2000, sets out both short-term and long-term indicators for the achievement of gender equality. The Committee, as part of its monitoring role, would like the Office of the Status of Women to undertake research that responds directly to the indicators, to determine what progress has been made, five years after the policy has become operational.
The National Gender Machinery, of which the Committee is one of the co- chairs, holds most of its meetings in Pretoria. The Committee would like to recommend the rotational holding of the meetings in different provinces, as a way of broadening the participation of provincial stakeholders, and giving a broader base of civil society organisations access to the National Gender Machinery deliberations.
Report to be considered.
-
Annual Report of Joint Monitoring Committee on Improvement of Quality of Life and Status of Women, dated 11 November 2005:
SCAN AND INSERT – PAGE 2972 -2985
National Assembly
-
Report of the Portfolio Committee on Transport on the Public Hearings on Annual Reports, dated 17 November 2005:
The Portfolio Committee on Transport having held public hearings on the Annual Report of the Department of Transport on 12 October and 2 November 2005, reports as follows:
A. Introduction
The Portfolio Committee on Transport was able to hold three public hearings on the Annual Report of the National Department of Transport and several entities reporting under the department – the South African Maritime Safety Agency (SAMSA), the Air Traffic Navigation Services (ATNS), the Railway Safety Regulator (RSR), Airports Company of South Africa (ACSA), the Civil Aviation Authority (CAA), and South African National Roads Agency Limited (SANRAL). Owing to constraints of time the Committee was unable to hold hearings on all entities falling under the Transport budget. The Committee accordingly made a strategic selection. The hearings were held in Parliament between the 12th October and 2nd November 2005.
The Committee notes with concern that the Road Accident Fund, the Cross Border Road Traffic Agency and the Road Traffic Management Corporation had not submitted their 2005 Annual Reports as of 31 October 2005.
B. Findings
-
The National Department of Transport
The 2005 Annual Report of the DoT reflects ongoing progress in the restructuring of the department to more effectively respond to its diverse responsibilities. The Committee believes that this restructuring should enable the department to devote more focused attention to areas that had previously been relatively neglected – including maritime and aviation policy.
There are high vacancy levels within the department at senior management levels. This is partly related to new posts associated with the restructuring noted above. However, the Committee expresses some concern at the vacancy levels, and at a relatively high rate of turn-over at the senior staff level.
For the first time in several years the department received a qualified audit opinion from the Auditor General. There are several important matters that the Auditor General’s report raises, including: ▪ ongoing uncertainty regarding the contract for the production of the credit card format licences. The Auditor General is awaiting the results of an investigation into this matter, and the Committee will also be tracking progress in this respect. ▪ instances of fruitless and wasteful expenditure, irregular expenditure and unauthorized expenditure. Officials from the department assured the Committee that each of these specific cases had been addressed and remedies applied.
In the Committee’s view, the most important issue raised by the Auditor General is that memoranda of understanding between the department and the public entities under its control are not regularly updated and some were last revised in 1994. In most instances, performance contracts had also not been concluded. The Committee agrees with the Auditor General that these instruments can play an important role in effective governance and oversight of these entities. The Committee is aware that subsequent to the time-period addressed in the 2005 Annual Report, the department has taken active steps to up-date and enhance memoranda of understanding and performance contracts with all relevant entities. The Committee will be monitoring progress in this regard.The Committee raised concerns that there was under-expenditure in certain priority areas, including on Arrive Alive, the implementation of the National Land Transport Transitional Act, and overloading controls.
2.Air Traffic Navigation Services
The ATNS has performed consistently well over several years, and the 2005 Annual Report accurately reflects continued achievements. The Auditor General’s report is qualified, but the Committee is satisfied that this relates to a relatively minor technicality regarding the asset register of the ATNS. We are also satisfied that this has now been corrected, and no actual asset losses have been incurred.
-
South African Maritime Safety Authority
SAMSA has experienced some leadership instability over recent years. The committee is concerned that SAMSA seems to lack a clear sense of its mandate focus. The Director General of the DoT confirmed this.
Part of this lack of clear strategic focus is reflected in the fact that SAMSA has a large assets to liability ratio. The DoT is insisting that SAMSA develops a proper budget to spend its surplus or forfeit it. The Committee supports this approach.
The Committee believes that these issues relate directly to the concern raised by the Auditor General regarding the need for the DoT to more regularly update its memoranda of understanding and performance contracts with entities such as SAMSA.
-
Airports Company of South Africa
ACSA is another entity that has been performing well over several years, embarking on major infrastructural projects and generating significant surpluses out of its airport activities. ACSA plans to embark on further major airport upgrades and renovations with a likely significant impact on job creation and SMME development, ahead of the 2010 World Cup. To maximize its work in this area ACSA hopes to borrow at a 30% gearing ratio, instead of at its current 6,7% gearing which means its capital expenditure borrowings are more expensive than they might be. The Committee agrees that an appropriate regulatory framework in this regard for ACSA should be considered.
The Committee notes that the company’s dividends have increased by 29% to R295-million for the year under consideration. While this is a welcome development, given the fact that the government is the majority share- holder the Committee is concerned that ACSA’s legal status means that it is not subject to the oversight of the Auditor General. The Committee suggests that measures be developed to improve public scrutiny of ACSA finances. The ownership profile of ACSA is another issue that requires further attention. The private sector share owned by Aeroporti di Roma has been sold back to ACSA and the projected employee share-holding has never been implemented. Further discussion and policy-development in this regard needs to occur.
-
Railway Safety Regulator
For the period covered by the 2005 reporting year, the RSR was an embryonic entity. In July 2004 there was a CEO and only two full-time staff and three secondments. Given its very recent establishment there was not much to report for the year under review. Nevertheless the Committee deliberately invited the RSR senior management to the public hearings in order to establish whether there was any real progress. The Committee was relatively satisfied that indeed some progress is being made. A State of Safety Report is being compiled, and the RSR is now receiving occurrence reports. 134 Safety Permits have been issued to rail operators and a further 50 will be issued in the near future. The RSR concedes that it has very weak enforcement capacity.
The Committee notes that there are still no organized labour and Department of Minerals and Energy representatives on the board of the RSR as required by legislation.
The Auditor General has raised several matters relating to unutilized funds, budgeting, the leave system and the non-performance of the RSR’s audit committee. The Committee will be monitoring these issues.
-
Civil Aviation Authority
The CAA continues to provide a high-level of technical capacity in aircraft inspection and accident and incident recording and investigation.
The Auditor General has queried a R60million investment with Old Mutual and Momentum Group Limited, and particularly commissions paid of R2,5 million in the absence of a clear investment policy. There is also a forensic audit under-way in regard to office accommodation. The Committee will monitor developments in this regard. Once again, the Committee believes that a more effective Memorandum of Understanding between the CAA and the DoT could help to improve governance in regard to issues of this kind.
The CAA raised with the Committee a concern that the aviation sector in South Africa required a champion to broaden participation and awareness of the sector amongst a wider section of South Africa’s population, and there was no real clarity as to where this championing function should be centrally vested. The Committee accepts the point, and will be raising the matter with the DoT.
-
South African National Roads Agency Ltd
In the assessment of the Committee, SANRAL has proved to be a very dynamic promoter of road construction and maintenance. Largely as a result of this and of its professional and technical capacities SANRAL’s road coverage has increasingly moved beyond its original national routes mandate. It was reported to the Committee that SANRAL’s road coverage is now set to double from its original mandate, often as a result of agreements with different provinces. The Committee believes that this is probably a positive development. It is, however, occurring without a clear agency agreement in place on funding. This latter now becomes an important matter for greater clarity and policy development, especially as many of the roads now being taken over by SANRAL require major rehabilitation. Ongoing funding of SANRAL’s activities should also take into account the significant escalation in the price of bituminous products, which are directly related to the international oil price.
The Auditor General has qualified his report of SANRAL, raising questions in regard to the land asset register and the absence of quarterly audits. The Committee will monitor these issues.
C. Further recommendations
Noting improvements in the number of timeous Annual Report submissions of the various transport entities, the Committee urges the DoT to ensure a hundred percent compliance in future years.
The Committee had inadequate time to deal with all of the reporting entities and we were compelled to make a strategic selection. The September 30 deadline for Annual Report submissions also means that the Committee’s own oversight and recommendations come too late for a more effective contribution to government’s budget development cycle. We recommend an earlier deadline for Annual Report submissions, and more adequate time in Parliament for public hearings on these reports.
-
Report of the Portfolio Committee on Transport on the Public Hearings on the Proposed Gautrain Project dated, 16 November 2005:
The Portfolio Committee on Transport having held Public Hearings on the proposed Gautrain Project on 18 –19 November 2005, reports as follows:
-
Introduction
The Gautrain project is intended to provide a rapid rail link between Johannesburg and Tshwane, with a branch-line between Johannesburg International Airport and Sandton. The project has been developed as a Public Private Partnership, involving national government, the Gauteng provincial government and a winning private sector consortium, Bombela. The prime objective of the project is to contribute to relieving the road congestion on the N1 Ben Schoeman freeway. Subject to national cabinet approval and the final negotiation of the respective contractual obligations of the participating parties, the construction of the project is due to begin in January 2006, with a target completion date of March 2010.
-
The role of the Portfolio Committee
The Transport Portfolio Committee has followed the development of the project over several years, but we have not previously assumed any direct oversight responsibility. This has been due to the fact that the project has been run by the Gauteng province, as one of several Blue IQ projects. However, on the 25th October 2005 the Minister of Finance announced in parliament that the Gautrain project had a “national” status. The Minister of Finance said that it would be costing government an estimated R20-billion. It is in this context that the Transport Portfolio Committee held public hearings on the Gautrain on the 8th and 9th November 2005. The Committee had very little time to ensure an effective and detailed oversight process. This is a matter of considerable concern. In the brief time available, the Committee nevertheless believes that its public hearings have provided an important opportunity to achieve greater clarity and transparency around the project. The hearings have also helped to open up a broader national public debate on the merits of the Gautrain project.
- Policy development and stake-holder participation in the project
The Committee is concerned that transparency and effective participation by key stake-holders in the policy development process around the Gautrain project have been inadequate. This is a view that appears to be shared by at least two of the three affected Metros, as became apparent to the Committee during recent fact-finding trips to the Tshwane and City of Johannesburg metros. The City of Tshwane Integrated Transport Plan 2004-2009, for instance, is explicit about several difficulties that it has with the Gautrain proposal. Section 7.6.2 of the ITP notes that the City of Tshwane Metropolitan Municipality (CTMM) Economic Development Department has committed itself to assisting with a successful implementation of the Gautrain project, but then adds: “This undertaking was given despite the fact that the Department’s Transport Division was not proactively involved, or invited, in the feasibility and planning studies undertaken for the project by Gautrans.”
- The Gautrain budgetary spend relative to other sectors of public transport
The projected public budgetary cost of some R20-billion makes this the most expensive single public transport project ever undertaken in our country. According to the project leader, the Gautrain is projected to have an initial demand of 134,000 passenger trips per day. Dr Andrew Shaw of the Development Bank of Southern Africa provided the Committee with a slightly lower initial demand projection of 104,000 passenger trips per day. These estimates of passenger trips per day would translate into around 60–70,000 individual passengers per day. The projected R20-billion to be spent on some 60-70,000 individual passengers (which is itself possibly an optimistic estimate) should be compared with what is being spent on buses, taxis and the Metrorail system, which together transport some 7 million South Africans every single week-day. The 2005 Budget allocates R250 million, R315 million, and R320 million for each of the next three years for taxi recapitalisation. The same budget makes additional allocations for existing and ailing passenger rail infrastructure of R100 million for 2006/7 and R250 million for 2007/8.
The Committee acknowledges that the Gautrain project will be a completely new rail system and its construction costs therefore cannot be compared in a simplistic way with taxi recapitalisation, for instance, or with Metrorail infrastructure upgrading. Nevertheless, the very significant size of the estimate cost to the public sector of the Gautrain project and the relatively modest number of passengers it will carry do need to be weighed seriously against the back-drop of the bulk of our public transport systems which are in a dire state, with extremely high levels of public dissatisfaction (see, for instance, the National Department of Transport’s National Household Travel Survey conducted in 2003 and presented to Parliament in 2005). A decision to proceed with the project in its existing form constitutes, therefore, a considerable political risk for government.
-
The Gautrain and the 2010 World Cup Soccer Finals At the outset of its hearings, the Portfolio Committee expressed concern at what was felt to be an attempt to steam-roller its oversight function by public statements from the Gautrain project leader that the country “had a moral and legal duty” to the 2010 Soccer World Cup Finals to begin constructing the Gautrain in January 2006. It was suggested that South Africa would lose the right to host the World Cup if the Gautrain was not completed on time. In the early stages of our public hearings, the Gautrain project leader once more alluded to these claims. However, the Committee was able to establish that South Africa’s official Bid Book to FIFA contains no reference to the Gautrain project. In the course of further interaction, the Gautrain project leader conceded that there were no contractual obligations to FIFA in regard to Gautrain. It was also agreed that the merits and viability of the project should be de-linked from the 2010 World Cup Finals.
-
Are projected construction time-frames realistic?
The Committee does acknowledge that a completed Gautrain rapid rail system could be a positive asset in the context of the 2010 World Cup Finals. However, even if construction does start in January 2006, the Committee is concerned that a 2010 completion date may well be extremely optimistic. The Gautrain project leader repeated to the Committee an observation he has made several times in the public media, namely that preparation and construction of the project will be far ahead of the international norm. (See, for instance: “We have found that a project of this nature usually takes 14 years. We will do it in nine years”, The Star, 25 June 2004). The Committee is uncertain of the grounds for this optimism. In March and April 2005 the major construction engineering groups associated with the two rival bids were reported to have warned that meeting the 2010 target would be “very difficult”. “Both construction companies have warned that the development of the rail link would be extremely challenging, as it would involve tunnelling through the hard rock beneath Johannesburg” , “the size and complexity of the project…was immense” (Business Day, 1 April, 2005). In assessing the feasibility of the current target completion date, the Committee recommends that Government factors in the possible impact of skills shortages and the availability of key material inputs like cement and steel. If construction does start in January 2006, we believe that completion by March 2010 is far from assured. If we fail to complete on time, the project may present 2010 with a construction site rather than a high-speed rail system.
-
Cost escalation
In its public hearings the Committee devoted some time to establishing the reasons for the dramatic escalation in estimated costs to government. While the final estimated costs still have to be settled in the contractual negotiations, the costs have risen from an estimated R7- billion to the R20-billion announced by the Minister of Finance in October 2005. The Committee was told by the Gautrain project leader that the R7-billion should, in fact, be compared with a new figure of R12- billion, because both were calculated as the estimated net present cost of the construction phase of the project. The R20-billion figure is the estimate of government’s total exposure over the five-year construction period, including the cost of paying back on borrowing. As to the escalation from R7-billion to R12-billion the Committee was told that this was related, amongst other things, to the absence of VAT in the earlier calculation, and to the cost of re-alignments. The Committee did not find these explanations entirely persuasive. The Committee is concerned that as recently as July 2005 Cabinet was still being given an estimate of R7-billion, even though the VAT liability had been clarified long before this. We are also concerned that costs to government may continue to escalate if the project gets under-way.
-
A high risk project
These concerns were reinforced by the public submission made to the Committee by Dr Andrew Shaw of the Development Bank of Southern Africa. Significantly the DBSA is one of the major financial backers of the Gautrain project, and Dr Shaw expressed support, in principle, for the project. However, he characterised the project as “high risk”. He told the committee: “I don’t think that the project has done a serious risk analysis. I suspect we have been presented a picture in which the risks have been substantially underestimated.” However, the project leader assured the Committee that the R20-billion figure was a fixed cost contract and there would be no extra cost. The Committee has not seen the contract and recommends that Government closely analyses possible risks of cost escalations that often occur in projects of this magnitude. The Committee also recommends that Government analyses the implications of any delayed completion penalties.
-
Construction cost underestimation in similar projects internationally
In the course of its public hearings, the Committee’s attention was drawn to a recent comprehensive international survey of 258 transportation infrastructural projects (Flyvbjerg, Holm and Buhl, “Underestimating Costs in Public Works Projects”, Journal of American Planning Association, Summer 2002). The main findings of this study are that in 80 percent of transportation infrastructure projects costs are underestimated. Rail projects are the worst in this respect, with actual costs on average 45 percent higher than estimated costs. The research finds that cost underestimation appeared to be a global phenomenon, but it was more pronounced in developing countries. In singling out rail projects as particularly liable to cost underestimation, the report finds that rapid rail and rail projects involving tunnelling were special culprits. The Gautrain project is a rapid rail project and some 12 kilometres of tunnelling are envisaged. The Committee appreciates that a statistically established global tendency for serious cost underestimation in projects of this kind does not prove that the Gautrain’s current R20-billion cost estimation is necessarily flawed. However, the survey’s finding that in its 258 world-wide project sample “cost underestimation cannot be explained by error and seems to be best explained by strategic misrepresentation” should not be lightly dismissed in this case.
-
R20-billion a “sunken cost”
In assessing the likely cost of the project, the Committee also draws attention to the fact that the estimated R20-billion cost to government for the construction of the Gautrain infrastructure will be a “sunken cost”. In other words, unlike many of our current Public Private Partnership projects in road construction, there is no plan to recover this cost over a defined operating period of the project.
- Job creation and contribution to general economic growth
The Committee notes that there is an expectation that the Gautrain will create some 93,000 jobs in the construction phase, coming down to 2,700 direct jobs in operating and maintenance thereafter. An infrastructure project costing R20-billion will also certainly have a broader impact on job creation and general economic growth. These important positives would need to be assessed in terms of the cost and of possible alternatives. However, without discounting these positives, the Committee believes that the project is not primarily a job-creation project, and it must be assessed primarily in terms of its contribution to resolving the transport challenges confronting the province.
- Alleviating road congestion on the N1
The key strategic objective of the Gautrain project is to help alleviate road traffic congestion on the N1 Ben Schoeman freeway between Johannesburg and Tshwane. There is relatively serious congestion on this important arterial route, and the Committee has been told that traffic on the route is increasing by 7 percent per annum. The Gautrain project hopes to attract some 20 percent of existing car-users on the Ben Schoeman to use the rapid rail system instead. It should be noted that, given the 7 percent annual increase, a (possibly optimistic) 20 percent reduction on the present car volumes would still leave the Ben Schoeman more congested in 2010 than at present.
- Many other congested axes in Gauteng
It should also be noted that the Ben Schoeman is not the only congested road in the Gauteng province. In regard to the Gautrain’s potential contribution to congestion relief, the City of Johannesburg’s Integrated Transport Plan 2003/2008 (Updated 2004) notes: “Whilst major public transport initiatives such as Gautrain can be expected to attract private transport users, this attraction will at best only slow down the growth in private transport demand (i.e. private transport demand will continue to grow albeit at a marginally reduced rate” (Executive Summary, p.42). The COJ’s ITP also notes that major congestion challenges are not confined to the N1: “The development of East/West linkages are just as important to the sustained growth of the City…” (ibid., p.39)
- Projected ridership figures
In his public presentation to the Committee, Dr Shaw of the DBSA was particularly concerned about what he termed an “optimism bias” in the Gautrain’s projected ridership figures. He noted that there was a high level of demand risk in the project because it is “extremely difficult to project demand for ‘greenfield’ development projects of this kind”, and because “private car users are notoriously bad at leaving their vehicles at home.” The authors of the international study on underestimation in construction costs referred to in paragraph 9 above, Flyvbjerg, Holm and Buhl, have found the opposite tendency when it comes to estimating demand. In a sample of 27 rail projects around the world, they found that actual ridership figures were more than 40 percent less than estimated in more than half the projects (“How accurate are demand forecasts for public works projects?”, Journal of American Planning Association, Spring 2005).
- The risk of operating subsidies
Passenger number forecasts for the Gautrain are important not just for estimating the relative contribution the project might make to alleviating some congestion on one of Gauteng’s key arterial routes. Significant ridership levels are also important for the financial sustainability of the project during its operational phase. While the private sector participants will carry some risk in this respect, their patronage guarantee will be set at a level well below the patronage level required for the project to cover its operating costs. Beyond this lower level, the province and national will have contingent liabilities related to higher patronage guarantee levels up to the break-even mark. While all of these remain subject to final negotiation, and precise figures could not be provided to the Committee, the Committee is concerned that a significant part of the Gauteng province’s public transport budget could be swallowed up in ongoing subsidies for the Gautrain at the expense of other priorities. The Committee is also concerned that the operating risks to the private sector would appear to be considerably less than those imposed on government.
-
A relatively affluent target market The prime objective of the Gautrain is to attract a relatively affluent and a relatively modest number of car-users currently using the N1 between Johannesburg and Tshwane. Projected ticket-prices, the up-market location of the majority of stations, the high-speed rail-gauge and voltage use which are non-compatible with our current rail-lines, the proposed purchase of train-sets manufactured outside of South Africa (which places limitations on local job creation) – these and other features have all been deliberately chosen to provide an affluent sector of the Gauteng community with a first-world public transport mode. The project will also be providing 250 new buses to shuttle its target market passengers from their places of work and residence within a ten-kilometre radius of the Gautrain stations. Park-and-ride facilities will also be laid on. However, the location of the rail-line is remote from most of the major townships of Gauteng, and there has been very little consideration of ensuring connectivity with the major modes of transport used by township dwellers in Gauteng. The Committee is also concerned that insufficient consideration has been given to the implication of new buses operating in areas already serviced by the minibus sector and existing bus services. The Committee further believes that insufficient attention has been paid to existing metro Integrated Transport Plans and related bus and taxi routes and ranks, and the Metrorail system.
-
Fragmented public transport In a written submission to the Committee on behalf of the Gauteng Provincial Passengers Council, Dr Vaughan Mostert notes that the Gautrain’s Feasibility Report published on its website makes many claims to being part of a transport system (“It must be seen as part of the larger provincial transportation network”; “It is part of a total holistic transport system in Gauteng”, etc.). In Dr Mostert’s view: “There is no holistic transport system in Gauteng or, for that matter, anywhere in South Africa. Formal public transport is fragmented, inadequate in terms of both route coverage and frequency, and has failed to develop in keeping with urban expansion. There is no integrated ticketing, scheduling, marketing or branding. Different operators offer different services under different sets of rules.” Dr Mostert is also critical of the Gautrain project’s claim that it is “in line with Government policy and legislation.” Dr Mostert points out that Sections 4 and 5 of the National Land Transport Transition Act refer 13 times to “the need to co-ordinate, integrate and rationalise public transport.” Section 4, he notes, “specifically requires public transport subsidies to be aimed at currently marginalized users and those who have poor access to economic opportunities.” Section 10, he further notes, “requires Transport Authorities to be set up. Sections 19 and 28 require these Authorities to produce a variety of plans relating to transport in general and public transport in particular. These requirements have not been met.” Dr Mostert concludes this part of Gauteng Provincial Passengers Council submission by asserting that “The Gautrain scheme will play no part in meeting the requirements or principles of the NLTTA. It is not aimed at currently marginalized users and will not assist those who have poor access to social and economic activity.”
-
The potential for existing bus services to act as feeders for the Gautrain
In another section of the Gauteng Provincial Passengers Council’s written submission to the Committee it is noted that the Gautrain project claims that “existing scheduled public transport services can act as feeders”. The submission, however, notes that in much of the area to be served by the Gautrain (Sandton/Midrand/Centurion) “formal public transport is almost non-existent. A few peak-only trips are run to and from the townships, on routes that lack focus and are known only to the handful of passengers using them.” The submission states that, in principle, the core bus services of Johannesburg and Tshwane might be expected to play a strong role in supporting the Gautrain. However, it notes: “in their present form they are in no position to make a contribution to the scheme. For many years, bus services in both cities have been crumbling steadily…In Johannesburg, heavy passenger losses have taken place, with a 40 percent cut in bus trips since 1988.”
-
Greater connectivity The Committee understands that some of these issues were raised in July by Cabinet when it gave an in principle commitment to the project. One of the preconditions for a go-ahead from Cabinet was that greater connectivity between the Gautrain and other mass public transport systems in the province should be built-in and demonstrated. The Committee is aware that some feasibility work has been done on this, but at the time of our hearings no documentation or briefing was available.
-
Assessing connectivity
It is impossible for the Committee to reach any conclusions about the prospects for building-in effective connectivity between the major mass modes of public transport in the province and the Gautrain. The Committee believes that connectivity needs to be critically associated with fare-prices and should not be confined to technical matters or to physical proximity of different public transport modes. If real connectivity, that begins to overcome the divide between the first and second economies, indeed, proves to be possible, then it will certainly enhance the social value of the project. We cannot assess the prospects of a revised project without much more information being available, but we are concerned that hurried attempts in this regard might result merely in a retro-fit approach that falls between two stools, undermining the objectives of the present first-world project while not adding anything serious to existing public transport challenges.
-
Three options
In the Committee’s view there are three main broad options available to Cabinet in seeking to reach a decision on the Gautrain project:
▪ The project could be given a go-ahead, essentially in its
present form. For all of the reasons elaborated above, the
Committee believes that this would be both financially and
politically a high-risk option and we would advise against it.
▪ The project could be revised to ensure greater connectivity to
existing mass public transport modes, and to major areas of
settlement, particularly the larger townships of the province.
Without a great deal more information, the Committee is unable
to assess the feasibility of such an approach. If Cabinet
favours this second option, the Committee would advise adequate
time be provided for a thorough assessment and for effective
public participation in the process. This necessarily implies
delaying any immediate implementation. The Committee recognises
that delays may have financial implications and may complicate
negotiations with bidders. We believe that these challenges are
far outweighed by the dangers of proceeding hastily with a
project that may prove to be financially unsustainable and may
further divide rather than connect the first and second
economies.
▪ The challenges of dealing with road-based congestion on many
of Gauteng’s major arterial routes, including the N1, could be
dealt with in a more comprehensive, sustainable and integrated
fashion rather than through a multi-billion rand, stand-alone,
rapid rail system. This would require moving away from a single,
flag-ship project approach to a multi-faceted strategy that
aligns the Integrated Transport Plans of the three major metros,
and that seeks to drive effective operational integration of all
of the major existing modes of public transport in the province.
- The need for a comprehensive approach to transport challenges in Gauteng
Whatever option is chosen, the Committee believes that the challenges thrown up by the Gautrain proposal underline the imperative of the rapid establishment of a single Gauteng Transport Authority as envisaged in the National Land Transport Transition Act (2000). Such a Transport Authority should work closely with the Transport Authorities/Transport Departments of the three affected metros, in order to produce a comprehensive approach to public transport in the province, in which a sustainable basis is laid for improving existing public transport, integrating all public transport modes, addressing land use and spatial planning and aligning these with public transport plans and regulation. In the view of the Committee responses to the congestion challenges of the province can only be addressed in a sustainable manner in this way. Stand-alone projects are unlikely to achieve much. A precondition for the success of an integrated Gauteng approach to public transport is that the National Department of Transport should urgently facilitate much greater operational and financial devolution of public transport to the province and its three major Metros. This will affect the way in which transport subsidies are allocated including to current bus operators in the area, the operational responsibilities currently enjoyed by the South African Rail Commuter Corporation and Metrorail, and the National Department of Transport’s approach to taxi recapitalisation.
- Acknowledgments
The Committee expresses its appreciation to Jack van der Merwe, Gautrain project leader, Dr Andrew Shaw of the DBSA, and Professor Romano del Mistro of the University of Cape Town for the presentations they made to the public hearings. The Committee thanks the officials of the Department of Transport and the National Treasury who contributed actively to the Committee’s deliberations. The Committee further expresses its appreciation to the Gauteng MEC for Transport and his officials in the Transport Department, and to officials in the City of Johannesburg and Tshwane Metros who hosted us during study tours to learn about public transport challenges in the Gauteng province.
-
Report of the Portfolio Committee on Social Development on Public hearings on the Older Persons Bill [B 68B-2003], dated 09 September 2005:
The Portfolio Committee on Social Development having conducted public hearings on the Older Persons Bill [B 68B-2003], reports as follows:
Introduction
The Portfolio Committee on Social Development held public hearings on the Older Persons Bill [B 68B-2003] on 30 to 31 August 2005. This report encapsulates those written and oral submissions made on the said Bill.
The following organisations, and individuals, made submission:
Organisations
❑ Cape Jewish Seniors Association (CJSA)
❑ Ikamva Labantu
❑ Highlands House (The Cape Jewish Aged Home)
❑ Grandmothers Against Poverty and Aids
❑ Kerklike Maatskaplike Dienste Raad (KMDR)
❑ Church Council For Social Services
❑ Action on Elder Abuse South Africa (AEASA)
❑ SA Human Rights Commission
❑ NG Ministry of Caring
❑ NAWONGO
❑ A branch of NG Welfare, North West
❑ Pretoria Council for the Care of the Aged
❑ Alzheimer’s South Africa
❑ Women’s Legal Centre
❑ Department of Health - CT
❑ The Black Sash
❑ Joint Forum for Policy on Ageing
❑ RAPCAN
❑ Southern African Catholic Bishops Conference
❑ Alliance for Children’s Entitlement to Social Security
❑ Law Society of South Africa
❑ South African Council of Churches
❑ Media Monitoring Project
❑ Commission on Gender Equality
❑ Action on Elder Abuse SA
❑ South African Association of Homes for the Aged
❑ The Body Corporate of La Belle Vie
Individuals
❑ Elizabeth M Xaba
❑ M.D.S Motshumi
❑ Thandiwe Joyce Mbongo
❑ Lucas Mangala
❑ Raliphi Master Push Xolelizwe
❑ HJJ Laubscher
❑ Peter Laubscher
❑ Mr FE Warner
(A). GENERAL CONCERNS OR RECOMMENDATIONS SUBMITTED REGARDING THE OLDER PERSONS BILL [B68B-2003]
Submitted by Action on Elder Abuse South Africa (AEASA) • One of AEASA’s main concerns in regard to the Bill is that, like the 1967 Aged Persons Act that was aimed at protecting white older persons in residential care. It focuses on older persons in residential facilities, when the reality. It says, is that the majority of South African older persons live in communities, with their families or alone. • The Bill does not take cognizance of older persons in rural areas, where the needs are great and services are minimal. • While government has correctly indicated that the care of older persons should be the responsibility of their families and communities, AEASA says, the legislation does not support this. • Parts of the current Bill are taken directly from the 1967 Act. The legislation must cover the rights of all older persons in South Africa.
Submitted by Commission on Gender Equality (CGE)
Whilst the Commission lauds the objects of the Bill as far reaching, it however says the actual content of the Bill makes very little reference to many of the aforesaid objects. It dismisses the actual content of the Bill as being disproportionately focused on the regulation of institutions of care for older persons as well as mechanisms for dealing with the abuse of older persons. Whilst the CGE fully supports the principle of the Bill dealing with both these critical issues in respect of the rights of older persons, it is of the view that in addition, the Bill should make adequate provision for other equally important issues in respect of aged persons.
The CGE proposes that the Bill refer to the fact that all of the constitutional rights are applicable to all older persons but in view of the specific needs of older persons, the application of certain rights may need to be specifically adapted in order to be responsive to the specific needs of older persons. It is concerned that this Bill only stipulates the rights of older persons in facilities, which ignores the reality that the majority of older persons live in communities.
It reckons that Bill could benefit from including a specific section at the beginning of the Bill that stipulates the rights of all older persons. It further wants the Bill to acknowledge the critical importance of older persons gaining access to sufficient information in order to know their rights and be able to exercise them. It suggests that the Bill should accordingly make specific provision for empowering older persons through ensuring them access to information which is both linguistically and culturally appropriate as well as accessible to older persons.
The CGE accepts that certain rights in respect of older persons are beyond the mandate of the Department of Social Development and it is accordingly not possible to deal with them comprehensively in this Bill. However, it is of the view that in order to do justice to the rights of older persons and for the Department of Social Development to fulfil its objectives in this regard, this Bill should, at a minimum establish mechanisms/structures in order to facilitate inter-Departmental collaboration in respect of older persons.
With the exception of the reference in section 2(1) of the Bill, that the Minister of Social Development may consult with any other relevant Minister to develop programmes, and support any person who runs programmes contemplated in subsection 2. CGE argues that no further reference is made in terms of securing the rights of older persons through collaborative inter-departmental initiatives.
CGE therefore recommends the following for section 2(1) “The Minister must in consultation with any other relevant Minister-”, as it expressly compels the Minister to consult. By making express reference to structures and mechanisms in order to facilitate inter-Departmental collaboration in respect of older persons, it says, the Bill will ultimately ensure that the needs and rights of older persons is reflected and infused in the wide range of legislative and policy measures of different departments, such as housing, health, education, justice and so forth.
The CGE is concerned that the Bill does not place a duty on the Minister in respect of the creation of new facilities and the maintenance of existing facilities. Section 6(2) compels the registration of a club; care or accommodation, on application can be made to the Minister in respect of a subsidy thereof. The constitutional rights of older persons impose an obligation on the Minister to create and maintain facilities for older persons. This obligation should be reflected in the Bill.
CGE contends that the Bill, in its current form reflects a disproportionate focus on institutional care. While the CGE is fully supportive of the need to regulate institutional care, it cautions against the assumption that institutional care is the primary means of support for older persons. The reality in South Africa, it says, is that many of the older persons receive family and community based care.
It says that the negative impact of the HIV/AIDS pandemic on the latter continues to increase the responsibilities of older persons. These responsibilities, it points out, include taking care of their grandchildren, and extended family members. Institutional Care, says CGE does not accommodate grandparents with young grandchildren, and other extended family members, and is therefore not an option available to these older persons, even if they wish to reside in institutional care. It only caters strictly for the single older person, CGE contends.
Submitted by NAWONGO
NAWONGO wants an Older Persons Act to be orientated to national policy. Such policy, it claims, does exist in different draft concepts, but it has not yet been finalized. The absence of such a policy, NAWONGO says, creates uncertainty amongst role players in finding a meaningful frame of reference and also interpreting some sections of the proposed statute. This is also expected to be a problem later, when the Regulations to the Act are published. The issue is furthermore complicated by the fact that the interpretation of policy is left to provincial departments and officials at area and local level, it says. The policy as regards older persons, it suggests, should be orientated to a National Welfare Policy and a National Welfare Act. The finalization of a national policy and a corresponding statute should therefore receive the highest priority.
Submitted by Grandmothers Against Poverty and Aids
It requests that more social workers are appointed and special counseling services for the use of older persons. It also requests that older persons have their special clinics to address their needs and that older persons, who care for extended families be given priority in the allocation of affordable accommodation within the communities where they choose to live.
Submitted by Body Corporate of La Belle Vie The Body Corporate alleges that the Bill appears to be directed exclusively to the requirements of institutions under the control of the Department of Social Development and thus ignores the many establishments in the country, which, provide for older and retired persons outside the control of the department. Such are established in terms of the Sectional Titles Act, Act 95 of 1986 and the Housing Development Schemes for Retired Persons, Act 65 of 1988. The latter two are said to be self-sustaining and do not call on the state for subsidies or special dispensations. They reportedly provide for their own autonomous management either out of their own internal resources or with the help of professional managing agents. They are directly exposed to financial pressures from outside and generally are constrained by the limited ability of the members and residents to meet such demands. While some such establishments may be fairly affluent, the majority is said to be less well off and are in need of protection from outside influences.
Submitted by South African Council of Churches The Council sees the Bill as a welcome move away fro addressing the needs of the older person purely from an institutional point of view. While it says, it acknowledges the need to address issues of care and protection, it says, it fails to deal with the need for a change of attitude toward ageing.
Submitted by Alzheimer’s South Africa Alzheimer reasons that while the government’s emphasis has been on home- based care this Bill does not focus on this at all but concentrates on institutional care which accommodates a very small percentage of all elderly people in the country. In addition, it says the very frail who require the institutional care the most in terms of the care they require, are completely excluded. It asks that this shortcoming in the Bill should be addressed as a matter of urgency.
(B). SECTION-BY-SECTION COMMENTS AND RECOMMENDATIONS
- Explanatory note Submitted by Joint Forum for Policy on Ageing
The Forum and is worried about the impression, it says, this explanatory paragraph before the Preamble it gives to the effect that the Bill will establish a “framework”. It says, this seems to imply that provinces will need to introduce their own legislation for older persons within this framework and, presumably, within their own financial and institutional constraints. It contends that this may conflict with the Parliament’s responsibility set minimum standards.
Submitted by Pretoria Council for the Care of the Aged
The Council while it feels that the stated object of the Bill is sound, it however says, this is merely a broad outline of policy and believes that the Bill should give direction to the implementation of these objectives in practice. Instead of this, the Council argues that the Bill concentrates almost entirely on institutionalized care with only limited reference to elder abuse. As such, it contends, the Bill fails to address the need to create an enabling environment for older persons and promote their status and well being as envisaged in section 3.
- Preamble
Submitted by Joint Forum for Policy on Ageing; and South African Council For The Aged
Recommendation Joint Forum for Policy on Ageing and South African Council For The Aged suggest the replacement of the preamble with the following: (a) Recognizing Past injustices which older persons experienced. The sacrifices which older persons made towards the establishment of a democratic society. That the majority of older persons live in poverty, especially in rural areas and are without access to the essential support and services
(b) Bearing in mind
The State must, in compliance with Section 7(2) of the Constitution, respect, protect, promote and fulfill the rights enshrined in the Bill of Rights. In terms the Bill of Rights the State may not unfairly discriminate against anyone on grounds of race, gender, sex, age or disability and everyone has inherent dignity and the right to have their dignity respected and protected, the right to be free from all forms of violence and the right not to be treated in a cruel, inhuman or degrading manner. In terms of Section 26 and 27 of the Constitution everyone has the right to have access to adequate housing, food and water, health care services and social security,
(c) It is the purpose of this Act
i. To ensure that the rights, dignity and independence of older persons are upheld; ii. To provide for the self-fulfillment, participation and care of older persons.
- Definitions
Submitted by Pretoria Council for the Care of the Aged
Whilst the Council acknowledges that an attempt has been made to incorporate all types of services in the scope of the Bill, and therefore in the definitions section in section 1, it however believes that many of the definitions overlap to such an extent that their interpretation in other sections of the Bill becomes problematic
Submitted by Alzheimer’s South Africa It is felt that not all the definitions in the Bill are adequate and represent the needs of all elderly, especially the frail elderly.
3.1. Defining “Abuse”
Submitted by Southern African Catholic Bishops’ Conference The Bill defines abuse as follows: Abuse means a single or repeated act or lack of action that causes harm or distress to an older person, including physical, psychological, financial or material harm or neglect, or sexual harm and includes the violation of an older person’s rights enshrined in Chapter 2 of the Constitution.
While covering a wide variety of actions (or inactions), it is unclear as to what exactly is meant by terms like ‘harm’ and ‘distress’.
Recommendation
In order to assist in the interpretation and application of the law, Southern African Catholic Bishops’ Conference urges the committee to expand the definition of abuse.
Submitted by Women’s Legal Centre
The Women’s Legal Centre submits that whilst the definition of abuse is laudable in its aims and objectives it has not fully considered what would constitute abuse in terms of the different types of abuse and the type of harm suffered by older persons in particular. It also fails to distinguish between different perpetrators of abuse, such as domestic elder abuse, institutional elder abuse and self-neglect. Furthermore, it is preferable to define emotional abuse, physical abuse, sexual abuse and economic abuse separately, as has been done in the Domestic Violence Act (hereinafter the “DVA”), as this will also lead to a uniform legal approach to the issue. One also needs to distinguish between “harm” and “abuse” as an abuse will cause or result in harm to the older person. Neglect also has a different connotation and all these concepts have not been sufficiently separated and dealt with in terms of what constitutes abuse and what does not. An extensive definition is set out in the DVA and we suggest that this be followed and amended in order to take into account the specific context of older persons. Guidance should also be obtained from international trends in legislative reform.
In the first instance the definition of abuse should be amended so as to bring it in line with the approach followed in both South African law and other jurisdictions, so as to ensure maximum protection. It is also recommended that an expansion of the various types of abuse would be warranted in the South African Bill to as to ensure clarity and certainty. Whilst it may result in fairly lengthy definitions it would ultimately assist in implementation of the Bill.
Recommendation The Women’s Legal Centre recommends that a broad definition of abuse be particularized followed by sub-definitions of the specifics as has been done in the Domestic Violence Act. The following is suggested in this regard:
“Abuse means any conduct including physical, sexual, emotional, verbal, psychological or economic abuse, neglect or abandonment) which harms or may cause imminent harm to the safety, health or well-being of the older person.”
Physical abuse is any act or threatened act of physical violence. The use of physical force may result in bodily injury, physical pain, emotional trauma or impairment of dignity. Physical abuse may include but is not limited to such acts of violence as striking (with or without an object), hitting, beating, pushing, shoving, shaking, slapping, kicking, pinching, and burning. In addition, the inappropriate use of drugs and physical restraints, force-feeding, and physical punishment of any kind also are examples of physical abuse.
Sexual abuse is any conduct, which humiliates, degrades or otherwise violates the sexual integrity of the older person. Sexual contact with any person incapable of giving consent is also considered sexual abuse. It includes but is not limited to unwanted touching, all types of sexual assault, such as rape, coerced nudity, and sexually explicit photographing.
Emotional, verbal or psychological abuse is a pattern of degrading or humiliating conduct towards an older person. It may include the infliction of anguish, pain, or distress through verbal or non-verbal acts. Emotional/psychological abuse includes but is not limited to verbal assaults, insults, threats, intimidation, humiliation, and harassment. In addition, treating an older person like an infant; isolating an older person from his/her family, friends, or regular activities and enforced social isolation are examples of emotional/psychological abuse of older persons.
Economic abuse includes the financial or material exploitation of an older person, the unreasonable deprivation of economic or financial resources to which an older person is entitled, or the illegal or improper use of an older person’s funds, property, or assets. Examples include but are not limited to cashing an elderly person’s cheques without authorization/permission; forging an older person’s signature; misusing or stealing an older person’s money or possessions; coercing or deceiving an older person into signing any document (e.g. contracts or will); and the improper use of guardianship, or power of attorney.
It is suggested that a definition of neglect and abandonment be included in the Bill in accordance with and in order to take into account the specific context within which older persons find themselves. The WLC also supports the contentions and submissions by the Human Rights Commission in relation to incorporating and defining frail older care as distinct from older persons.
Neglect means the refusal or failure to provide an older person with such life necessities as food, water, clothing, shelter, personal hygiene, medicine, comfort, personal safety, and other essentials included in an implied or agreed-upon responsibility to the older person.
Abandonment is defined as the desertion of an elderly person by an individual who has assumed responsibility for providing care for an elder, or by a person with physical custody of an elder.
Self-neglect is characterized as the behaviour of an older person that threatens his/her own health or safety. Self-neglect generally manifests in an older person as a refusal or failure to provide himself/herself with adequate food, water, clothing, shelter, personal hygiene, medication (when indicated) and safety precautions. The definition of self-neglect excludes a situation in which a mentally competent older person, who understands the consequences of his/her decisions, makes a conscious and voluntary decision to engage in acts that threaten his/her health or safety as a matter of personal choice.
By expanding upon the definition in the aforegoing manner, one would also be bringing the Act in line with the definition of “care” as contained in the Bill since this definition clearly envisages a broader, more holistic approach in that “ care’’ is defined to mean “physical, psychological, social or material assistance to an older person, and includes services aimed at promoting the quality of life and general well-being of an older person.” It further brings the Bill in line with the Domestic Violence legislation currently in place in the country and the proposed Sexual Offences and Children’s Bill in terms of abuse and violence as against vulnerable groups.
Submitted by Action on Elder Abuse South Africa
The Action on Elder Abuse SA contends that although this definition has been improved on by the NCOP, it still needs further improvement. It therefore suggests the term “elder abuse” be defined as follows:” Elder abuse means a single or repeated act or lack of action that causes harm or distress to an older person occurring within a relationship where there is an expectation of trust, including physical, psychological, financial or material harm or neglect, sexual harm and includes the violation of a person’s rights as enshrined in Chapter 2 of the Constitution”.
This will distinguish elder abuse from other crimes, AEASA reckons.
Submitted by Joint Forum for Policy on Ageing
The Joint Forum for Policy on Ageing notes the improvement in the definition of abuse by the NCOP but feels that it is now too wide.
Recommendation
It wants the current definition limited by adding the following words between “person” and “including” on line 27: “occurring within any relationship where there is an expectation of trust”. It considers this necessary in order to distinguish abuse from other crimes.
Submitted by South African Council For The Aged
The Council thinks the definition of abuse has been improved by the NCOP but it is now too wide. To limit it, the Council proposes an addition of the following words between “person” and “including” on line 27: “occurring within any relationship where there is an expectation of trust”. It considers this necessary in order to distinguish abuse from other crimes.
Submitted by South African Human Rights Commission
The Commission is of the view that the current definition is too broad and refers to all the rights contained in the Bill of Rights.
Recommendation The Commission suggests that the words: “. . . and includes the violation of an older person’s rights enshrined in Chapter 2 of the Constitution . . .” that appear in the current definition be removed. And the following words “ . . . occurring within any relationship where there is an expectation of trust.”
Commission’s proposed amended definition:
“abuse” means a single or repeated act, or lack of action, occurring within any relationship where there is an expectation of trust that causes harm or distress to an older person, including physical, psychological, financial, material or sexual harm or neglect,.”
Submitted by Alzheimer’s South Africa
Alzheimer suggests the following definition of abuse “ a single or repeated act or lack of action that causes harm or distress to an older person occurring with any relationship where there is an expectation of trust, including physical, psychological, financial or material harm or neglect, or sexual harm and includes the violation of an older person’s rights enshrined in Chapter 2 of the Constitution”.
3.2 Defining “Caregiver”
Submitted by South African Human Rights Commission The Commission raises a concern about the training that home based carers receive and the standard thereof. It expresses doubt on whether the carers were trained in all he necessary skills.
Recommendation The Commission suggests an amendment of the definition of “care giver” by including the word “trained”. It would also like to see the Minister making regulations regarding caregivers. It wants caregivers to be registered with the Department in order to ensure that there is a minimum level of service and also to check if their names appear on the register.
3.3 Defining “Facility”
Submitted by Action on Elder Abuse SA
The Action on Elder Abuse SA holds the view that currently trend is moving towards including services for older persons in multi-purpose facilities or centres and the definition therefore needs to include this.
”Within the Bill “facility” refers mainly to old age homes; service recipients are not necessarily residents of old age homes”.
Submitted by Joint Forum for Policy on Ageing
Although it acknowledges the expansion of the definition of “facility” effected by the NCOP to cover private residential homes, the Forum still contends that some confusion remains over this definition and how it relates to that of “community based care and support services.”
Submitted by NAWONGO
Nawongo reasons that the definition of “facility”, read with section 5(1)(a), is still confusing and vague.
Submitted by Alzheimer’s South Africa
Alzheimer says that “facilities” only includes residential facilities and residential homes where elderly people pay to stay, but does not include residential family homes, informal shelters or other facilities where elderly people may reside. It therefore suggests that there should be a separate definition for the primary or family home.
3.4 Defining “Financial Abuse”
Submitted by Eskom Pension Association
Eskom Pension Association feels that this should be specifically defined, particularly due to fraud, misrepresentation, taking advantage of older persons living with cognitive and neurological disabilities, unlawful commission deductions for willingness to convert a pension cheques to cash, and misappropriation of pension payments and social grants.
3.5. Defining “Frail Care”
Submitted by NAWONGO
Recommends the re-inclusion of a definition for “frail care”.
Submitted by Action on Elder Abuse South Africa
The Action on Elder Abuse South Africa says this definition was removed by the NCOP and wants it reinstated as, it says, frail care is the final stage in a continuum of care for older persons.
Submitted by South African Council For The Aged This definition was deleted by the NCOP, as were all references to “frail” older persons in the Bill. However, in line with the community care approach, the Council would like to see the definition and references to “frail” with respect to residential care restored to the Bill.
3.6. Defining “frail person”
Submitted by Action on Elder Abuse South Africa
This is another example of a definition that the Action on Elder SA says was removed from the Bill and advances for its reinstatement on the basis that a frail older person, whether mentally or physically frail, has specific needs, which in turn require special skills and staff ratios.
Recommendation The Action on Elder Abuse suggests the following definition: “A frail older person means a person, 60 years and older, whose physical or mental condition renders him or her in need of 24 hour continuous care.”
Submitted by Directorate Chronic Care Rehabilitation, Dept of Health: CT
The Directorate contends that although “frail” does not only refer to older persons, in this bill, it should however refer to an older person. It says it is important to mention “frail person” specifically in the Older Person’s Bill as it has implications for the type of care, and resources needed e.g. equipment, adequately trained human resources, medication, rehabilitation etc.
Recommendation The Directorate suggests that since the object of the Bill is the protection and the promotion of their safety, well-being and security etc, the term “frail person” as vulnerable and in need of care should be added in the definitions.
If the definition is not replaced, the Directorate threatens that, the need for frail persons to receive 24-hour continuous care might not be met and inadequate support could be supplied.
Submitted by Joint Forum for Policy on Ageing
Recommendation
The Forum recommends that in line with the community care approach and the vulnerability of the frail. The reinclusion and restoration in the Bill of the definition and references to “frail” with respect to residential care. It suggests that the definition should read: “frail person means an older person whose physical or mental condition renders him or her in need of 24- hour continuous care.”
The Forum urges the Portfolio Committee to consider at the situation of younger frail persons, numbers of whom are currently being cared for in residential homes. What are the implications for them of excluding them from this definition?
Submitted by South African Human Rights Commission The Commission strongly argues for the reinclusion of the word “frail person” into the Bill based on the following grounds:
• Frail persons are your most vulnerable older persons. They need
specific recognition.
• Frail persons have very specific needs, which are different from older
persons who are not frail.
• Highly skilled and trained staff are needed for frail care. The ratio
of residents to staff is far higher.
• Frail care represents the end of the spectrum of the continuum of
care, Just as all other forms of care ought to be mentioned in the
Bill, so too must frail care.
• If frail care is not mentioned in the Bill then what will the
Department connect its Frail Care policy to?
• Old age homes are increasingly becoming frail care homes
Submitted by Alzheimer’s South Africa Alzheimer strongly feels that the definition of the frail person, which was previously removed by the NCOP, should be reinstated.
It is suggested that the definition of frail person could be defined as: “is a person over the age of 60 whose physical and or mental condition renders him or her incapable of caring for themselves and they require twenty four hour care. 3.7. Defining “home based care”
Submitted by Joint Forum for Policy on Ageing
The Forum proposes the following definition replace the one in the Bill: “Home based care is the provision of health and personal care services rendered by formal and informal care givers in the home in order to promote, restore and maintain a person’s maximum level of comfort, function and health including care towards a dignified death” (Draft Frail Care Policy - World Health Organization).
Submitted by South African Human Rights Commission
The Commission is concerned that the definition excludes caregivers who are the spouse or family member of an older persons.
Recommendation
It suggests that a serious consideration and debate on whether home-based care should exclude family members. It says it may well be in the interests of the state in instances where people are not economically advantaged to provide some assistance in order that the older person remains with the family. By failing to assist the family, the Commission says the state may well be placed in a situation where older persons are presented for care at old age homes 3.8 Defining “luncheon club”
Submitted by South African Human Rights Commission
Recommendation
The Commission would like to see the word “luncheon” from the term ‘luncheon club’ removed and a new definition for ‘club’ created with the following key elements: ❑ It is a service which promotes the quality of life and general well being of an older person i.e. it is a form of care ❑ It promotes and maintains the independent functioning of older persons in a community – from definition of community- based care and support services
3.9. Defining “maintenance”
Submitted by Eskom Pension Association The Association reckons that this should be specifically defined to make a legislative linkage with the relevant maintenance legislation and to express the legal obligation of spouses, brothers and sisters, children and grandchildren of paying maintenance to an older person who legally proves a need for financial support.
3.10. Defining “older persons”
Submitted by Action on Elder Abuse South Africa
The Action on Elder Abuse would like the definition of an older person to be “any person, male or female, who is sixty years of age or older”.The age variation, AEASA claims, is notonly discriminatory but contends also would have a negative impact on accessibility to services for older men, the mandatory reporting of elder abuse and the admission to a care facility. It objects to the notion that this place an extra financial burden on the Department of Social Development saying that many men in the 60 to 65 year old age group who are frail, are already in receipt of or would qualify for a Disability Grant.
Submitted by Black Sash
The Black Sash is of the opinion that the definition of Older Persons in terms of this Bill differentiates between males and females between the ages 60 and 64years. This, it says, amounts to discrimination as the females enjoy legislative protection in terms of access to care facilities, protection against abuse and benefits from programmes, which males of the same age do not enjoy. This form of discrimination is presumed to be unfair in terms of section.9 (3) unless it can be established to be fair, it reckons.
Furthermore, Black Sash believes because of age differential that this Bill will make the Act impractical to implement and open the potential for litigation against the Department, the cost of which, it says, can be prevented and used to provide social security to older people.
Recommendation
It recommends that an Older Person in the Bill is defined as persons of the age 60 years and older.
Submitted by Joint Forum for Policy on Ageing
The Forum considers that it is not appropriate to apply different ages for men and women with respect to access to facilities and treatment. The Aged Persons Act, which this Bill replaces, referred to “debilitated persons” which it defined as any person over the age of 60. We seem to be moving backwards with respect to older men, contends the Forum.
Submitted by Women’s Legal Centre
The Women’s Legal Centre is of the opinion that, whilst in some cases it may be justifiable to differentiate between male and females and not treat different sexes the same, in the current context and in view of the purpose of this Act, as a protective measure, there is no reasonable and justifiable rationale for the differentiation, which in effect amounts to discrimination. Accordingly, it submits that an older person should not be defined so as to differentiate between men and women over the age of 60.
The rationale and basis for this Bill, it says, is one of protection and accordingly it would not be acceptable to increase the age to 65 for both men and women as this will be to the detriment of women and men and will not be in line with international trends and the South African Constitutional standard in terms of allowing the maximum protection available.
Submitted by South African Council For The Aged
The Council does not consider appropriate to apply different ages for men and women, particularly with respect to treatment and access to facilities. Consideration needs also to be given to the effect of the present definition on facilities and services that are provided to a range of people, for example people with disabilities, who are frail but are not old. Many institutions who provide for such people depend on subsidies, and the effect of this definition could be prejudicial to them.
Submitted by South African Human Rights Commission The Commission holds the strong view that older persons should be defined as persons older than 60 years and that there should be no age differential between women and men. It feels that the present age differential between men and women is not only discriminatory but will also make the Act quite impractical to implement. It also warns that by keeping the age differential in the Bill, the Department of Social Development is potentially opening itself up to a plethora of litigation in that older persons across the country could challenge the actions of the Department in all its dealings with older persons where the age differential has an impact.
Recommendation
The Commission suggests the removal of the age differential from the Older Persons Bill. It supports the notion that an older person is a person who is over the age of 60 years.
Submitted by Alzheimer’s South Africa
Alzheimer feels that it is discriminatory to define the ages of men and women differently and suggests that the Bill define all older persons as those over the age of 60. Basic care
3.11. Defining “older persons with disabilities”
Submitted by Eskom Pension Association The Association feels that this should be specifically defined to be able to highlight oppression, discrimination and abuse based on cognitive and neurological as well as physical disability, since older person living with these disabilities are the most vulnerable; that these should be dealt with under the Criminal Procedures Act, the Equality Act and to make a legislative linkage with the Mental Health Care Act, No 17 of 2002.
3.12. Defining “Manager” vs. “operator”
Submitted by South African Human Rights Commission
The Commission thinks the usages of these two definitions in the Bill appear confused. Furthermore it does not think it is legally tenable to give these duties to an employee (the manager) of an owner of a business (the operator). It argues that the responsibility needs to rest with the person who is ultimately in charge of the facility. It is open to the possibility that the operator may delegate the responsibilities, however it says, it must ultimately remain the responsibility of the operator to ensure that the statutory obligations created in the Bill are carried out.
It strongly argues that the Bill is creating a potential conflict of interest for managers. For example, what must the manger do if the operator fails to provide the manager with the necessary resources or equipment in order to carry out the statutory obligations? More concerning is Clause 8 - how will a resident’s committee ensure that a manager will carry out the duties contained therein. Surely, it is for the resident’s committee to consult with the operator on these matters. Finally, the operator must provide the reasons for a failure to admit an older person to a facility. If, for example, the reasons amount to a violation of Clause 9(1), then this could attract criminal responsibility, says the Commission. The Commission thinks the legal duty to provide these reasons ought to rest with the operator of the facility, as it is the operator who should take ultimate responsibility for managers and the decisions that they may take regarding admissions to the facility.
Recommendation
The Commission suggests that the word “manager” should be removed from the Bill and be replaced with the word “operator”. It wants all references to manager, except the reference in clause 22, be replaced with the word operator. It suggests that the definition of manager be removed and Clause 22 (4) be reworded by stating that any manager, as defined in the Aged Persons Act 1967, Alternatively, it wants the definition of manager to be replaced with a definition that makes reference to the definition of manager contained in the 1967 Aged Persons Act.
Submitted by South African Council For The Aged
The Council thinks the term “operator” is not legally tenable as it does not necessarily cover owners.
Submitted by NG Ministry of Caring
The Ministry does not see the difference between “operator” and “manager” and therefore suggests that the word “operator” be left out.
Submitted by Alzheimer’s South Africa
Alzheimer feels that the previous term of “manager” is more acceptable than the term “operator”
3.13. Defining “person”
Submitted by Joint Forum for Policy on Ageing
The Forum reckons that this definition should be more holistic as it needs to cover other parties including Section 21 companies.
Submitted by NAWONGO
The definition of “person” is incomplete and insignificant. The use of the concept “operator” causes more confusion.
Submitted by South African Council For The Aged
The Council wants to see this definition more holistic and covering other parties including Section 21 companies
3.14 Defining “Professional health care provider”
Submitted by Alzheimer’s South Africa
It suggests that it should mean a person providing health services in terms of any law and who is registered with their professional association or legislative body.
3.15. Defining “shelter”
Submitted by Action on Elder Abuse South Africa
The Action on Elder Abuse SA says this definition must include “safe beds. These, AEASA says, could be in residential facilities or within the community e.g. in rural areas.
Submitted by Joint Forum for Policy on Ageing
The words “including safe beds” should be inserted between the words “premises” and “maintained”.
Submitted by South African Council For The Aged
The Council suggests that words “including safe beds” should be inserted between the words “premises” and “maintained”.
Submitted by Alzheimer’s South Africa
Alzheimer says shelters are defined in the Bill but are not included in the Bill.
- Proposed new definitions
Submitted by Joint Forum for Policy on Ageing and South African Council For The Aged
The Forum and Council propose the insertion of the following definitions in the Bill:
“assisted living”
To be defined as ”Assisted living is the provision of affordable, adaptable and secure accommodation which provides older persons with an environment that enables access to support services, food supplies, primary health care, a pension pay-point or bank, transport, recreational, educational and leisure activities”
“basic care” (See Section 12(d)
To be defined as “Basic’’ care covers personal hygiene, adequate clothing and footwear, nutrition, toilet needs, mobility aids, rest and sleep and social and recreational needs.”
“day care”
To be defined as “Day care for adults is a service within a residential home or service centre which provides social, recreational and health- related activities in a protective setting to individuals who cannot be left alone during the day because of health care or social needs”. (Draft Frail Care Policy)
Submitted by Action on Elder South Africa
AEASA requests the following definitions to be included in the Bill:
“assisted living”: “Assisted living is the provision of affordable, appropriate and secure accommodation that would enable older persons to remain independent and live in their communities within an environment that would provide access to support services”.
“day care”: “Day care for older persons is a service provided within a residential facility or service center which provides social, recreational and health related activities in a protective setting to older persons unable to be left alone during the day due to their social or health needs”.
“home based care”: “Home based care is the provision of health and personal care services rendered by formal and informal caregivers in the home in order to promote, restore and maintain an older person’s maximum level of comfort, function and health including care towards a dignified death.
Submitted by Alzheimer’s South Africa
Alzheimer suggests the inclusion of the following new definitions:
Basic care
This covers personal hygiene, adequate clothing and footwear, nutrition, toilet needs, mobility aids, rest and sleep and social and recreational needs. Access to primary medical and psychiatric care should be included.
Home based care
This is the provision of health and personal care services rendered by formal and informal caregivers in the home in order to promote, restore and maintain a person’s optimum level of comfort, functionality and health, and enhance their quality of life and care.
Day-care for adults
Is a service within a residential home or service centre, which provides social, nutritional, recreational and health related activities in a protective setting to individuals who cannot be left alone during the day because of their health care or social needs.
- Chapter 1 – [Programmes for Development of Older Persons]
5.1 Title of Chapter 1
Submitted by Joint Forum for Policy on Ageing and South African Council For The Aged
Recommendation
The Forum and Council would like to see this chapter titled Older Persons and Development; since it considers the purpose of the Bill as not to develop older persons as a separate group but to involve and integrate them in development generally.
Submitted by South African Human Rights Commission
Recommendations
In line with the Madrid Plan, which speaks of Older Persons and Development as opposed to the development of older persons, the Commission suggests that the title of the chapter should be amended to Programmes for older persons and development. It argues that the title as currently worded implies that older persons themselves need development and views as paternalistic.
Submitted by South African Council of Churches
The Council, like the SA Catholic Bishops Conference, is of the view that the heading and contents of Chapter 1 are vague in their intention and arbitrary in their commitment. It further feels that older persons be not viewed as just subject to programmes and process but that the older person ought to be able to shape these programmes and processes. In order to give substance to the aims and objects of the memorandum, the Council suggests that the title be renamed “Programmes for development and the older person”.
Submitted by Alzheimer’s South Africa
It is strongly suggested that the title of this chapter should be changed to read: “Programme Development for Older Persons”
5.2. Programmes for development of older persons
Submitted by Action on Elder Abuse South Africa
Recommendations
AEASA suggests this chapter should read “Older Persons and Development” and should seek to integrate older persons into the community and development rather than to segregate them from the other age groups.
It further suggests that the word “may” should be replaced by “must” and “consultation” by “form partnerships”. Without intersectoral co-operation this chapter and indeed the entire piece of legislation, will be impossible to implement.
In section 2. (b) AEASA suggests that the meaning of “support” should be defined – as it stands it is too vague and would have a direct bearing on implementation.
In section 2. (2) AEASA reckons that the programmes as they stand in the Bill are little more than a wish list and merely pay lip service to the implementation of the Madrid Plan of Action.
AEASA suggests that an omission in the list of programmes is one that will address and prevent elder abuse, support and encourage older persons to stand up for their rights. This programme, it says, should target not only older persons but their families and caregivers as well.
The national forum for older persons, which has been initiated by the Human Rights Commission and the Department of Social Development, AEASA suggests that it be included in the Bill as a programme. The inclusion of this forum as a programme, AEASA reasons, would also insure that the Minister consults not only with stakeholders but, most importantly, with older persons themselves.
AEASA finally proposes that the needs of older persons in rural areas be researched and programmes developed accordingly.
Submitted by Black Sash
Recommendation Black Sash urges the Department to include a programme/s under section .2 related to the impact of HIV/AIDS on Older Persons infected and affected by HIV/AIDS. The focus being the provision of information, social support and formal care for Older Persons who are infected with HIV/AIDS or care givers.
Referring to sub-section .2(2)(f)) of the Bill, Black Sash registers its strong opposition to deductions of any nature at any point in the payment of grants by the State or the intended South African Social Security Agency. In the event of non-consideration of its objection to the above position on deductions Black Sash would like to recommend that such allowable deductions by the Minister should not exceed 10% of the grant amount for burial schemes and this should be stated in the Regulation concerned.
Submitted by Pretoria Council for the Care of the Aged
The Council says the list of programmes in section 2 cannot be regarded as sufficient.. As such, it says, the list is not sufficiently comprehensive, nor is it clear as to by whom or how they will be implemented and/or funded. The contents of the Bill, it holds, only address a limited number of the programmes
Submitted by Cape Jewish Seniors Association
Recommendation
The Association suggests the following additions: • “part of UN directive to create a data base” in section 2 (k) . • “Seniors should no longer have forced retirement at 60 or 65 years of age” in section 2 (l) and also to include –“ seniors should be allowed employment to subsidize their pension without being penalized.”
Submitted by Joint Forum for Policy on Ageing The Forum proposes “consultation” be replaced by joint mechanisms or partnerships, with Social Development as the lead Department. The nature of “support” needs to be defined – as it stands it could not be costed. This will doubtless influence implementation.
The Forum wants the Bill to give more direction and substance to the programmes. The more precisely a service is described the more likely it is to be implemented. The Costing Report was unable to comment on legal and fiscal implications of the programmes because their extent is unclear. “Despite the aspirations of a Developmental Service Delivery Model, the absence of norms and standards makes it difficult to cost the Bill within the developmental paradigm”.
In the event, the costing was based on current services and programmes rather than costing the specific provisions of the Bill. The outcome was four categories of programme:
❑ Promotion and Protection of the Rights of Older Persons
❑ Integrated Community based and outreach programmes
❑ Residential Care
❑ Departmental Administration (including research and monitoring)
The shortcoming of the above categories of program, the Forum reckons, is that they overlook some of the programs listed in the Bill, in particular some of those which require collaboration with other Departments. Recommendation
The Forum therefore suggests that the programs in this section be listed in order of importance and that priority be given to (a) (e) (h) and (j)
It also suggests the following proposals on programmes in this Chapter (with amendments underlined):
❑ “public education on ageing, the rights of older persons and their
social, cultural, economic and political contribution” The Forum
proposes that this program be combined with (k) and read as follows
“The formation of an national forum of older persons to advise the
Minister, ensure the participation of older persons in decision-making
and establish a national research plan and a communication network on
ageing”
❑ “access of older persons to information, education and training,
especially in rural areas”. This program, the Forum thinks, needs to
be spelt out – as it may be covered by other programs
❑ ”The protection of older persons and the education of carers and
communities on their rights and needs.” The Forum is of the view that
the issue of control of companies selling funeral policies and loans
is a burning issue for older persons, hence this programme. The Forum reckons that, currently the distribution of existing facilities is very skewed. It feels that transforming them is not enough. It therefore suggests that new day care and residential frail care facilities be provided. The Forum does not consider the multi-purpose centres referred to in the Bill as an adequate option. It argues strongly that frail older persons are vulnerable and therefore need their own space.
The Forum further suggests assisted living housing for older persons (some frail) caring for orphans.
Submitted by South African Council of Churches
The Council says that notwithstanding the fact that the Department of Social Development met with various governmental and societal stakeholders and that such provided valuable information, the Bill still needs to reflect such participation further and later down the line. Such an approach, it says, would require the Minister to adopt an intentional plan with strategies to be spelt out enhancing the capacity and participation of the older person to address the vision of an inclusive society as envisaged by our constitution. It says it also suggests that action on ageing needs to be come mainstreamed into all the work of other Departments so that the process of developing a society that seeks to care for and protect its citizens is the responsibility of government and every citizen. It goes on to say that such a plan of action would then of necessity be worked out with all stakeholders such as government, civil society, not for profit organizations, faith based organizations and communities as well as with traditional leaders.
The Council therefore recommends that section 2 (1) read: ‘The Minister shall, in consultation with other relevant Ministers and representatives of older persons from various sectors of civil society establish a National Forum for Older Persons for the implementation of action on ageing”. The Council says such a Forum may add to and or amend the fifteen programmes identified under section 2 (2) (a-o) in the Bill, while giving consideration to an appropriate inter-sectoral mechanism or National Policy Framework
Submitted by Directorate: Chronic Care Rehabilitation, Dept of Health: CT
Recommendation Referring to section 2 (2) (j), the Directorate suggests that the Bill should particularly address the development of policies and the implementation of those policies to prevent ill health among older persons. In particular, it says, the provision of infra structure to prevent the priority chronic diseases that are costly to manage and lead to increase in the burden of disease.
The Directorate further advances for necessary resources in terms of human resources, funding, equipment, training as well as the monitoring and evaluation structures.
The Directorate further suggests that programmes should: • make provision for the development of self-help support and provide respite for patients, families and other carers. • Promote public information about the symptoms treatment, consequences and prognosis of mental conditions. Provide ongoing training to health care professionals in the detection and assessment of all mental disorders and of depression. The Directorate suggests that the provision of assistive devices including spectacles / and operations for the removal of cataracts for the prevention of blindness and dependency should be addressed according to Prevention of Blindness Strategy of the WHO. It is opposed to any form of discrimination practiced where older persons are concerned.
The Directorate suggests that the Bill should make provision for occupational health programmes for older persons.
Submitted by Grandmothers Against Poverty and Aids
It requests that programmes that promote intergenerational understanding and mutual respect be put in place.
Submitted by Ikamva labantu
It suggests that programmes: • must be geared towards the development and enhancement of income- generating activities. • need to include health promotion and prevention programmes, social and emotional support due to the impact of HIV/AIDS, orphans, unemployment, increased poverty and irresponsible behavior of individuals within the household. • need to focus on the development of and sustainability of day-care centers for seniors.
Submitted by NG Ministry of Caring In section 2 (b) – The Ministry says the participation of older persons in decision-making process should be at appropriate levels and taking account only people who are corpus mentis.
In section 2 (c) - The Ministry wants the word “training” to be specified as “health related training”
In section 2 (n) – The Ministry does think the reported exemption cannot be done without a means test.
Submitted by South African Human Rights Commission
The Commission is concerned that the Bill does not provide for a central coordinating mechanism that would be responsible for overseeing and monitoring the implementation of this chapter. It fears that without such a body, the matters listed in sub-section 2(2) would not receive the necessary and prompt attention.
The fact that, should further programmes be identified in years to come, this would require amendments to the Act, also concerns the Commission. It therefore suggests that wording be added to the Bill that would allow the Minister to identify further programmes that may not at this stage be listed in sub-section 2(2).
It suggests that “may” in sub-section 2(1) should read “must”.
Referring to sub-section 2(2)(a) suggests that this programme should also refer to the religious contribution of older persons.
Referring to sub-section 2(2)(c) on the access of older persons to information, education and training, the Commission is calling for the ABET programmes to reflect the realities of older persons lives and for these programmes to be designed in a manner that would equip them with practical knowledge.
It further suggests that an intergenerational aspect be added to this programme as it believes that It is not only older persons who need information. It says their carers and family members also do. On sub-section 2(2)(d), the Commission thinks that this programme was very broad and is suggesting that it be zoomed down to development and Older persons with a specific reference to the improvement of living conditions and infrastructure in rural areas; the alleviation of the marginalisation of older persons in rural areas; and the integration of older migrants within their new communities.
Regarding sub-section 2(2)(e) the Commission claims that this programme does not specifically reflect any of the Recommendations of the Madrid Plan. It is however pleased with its inclusion of this programme and regards it as important.
Referring to sub-section 2(2)(f) of the Bill, on the programme establishing norms and standards for companies selling funeral policies and extending loans to older persons, the Commission hails the specificity of this programme. It says the programme is justified and clearly needed in South Africa given the widespread reports of older persons being taken advantage of by some people who sell funeral policies and make loans.
Recommendation
The Commission suggests, based on what it terms the enormity of the problem and the concern, which people have on funeral policies and loans that there should be a programme concerning funeral policies and a separate programme concerning loans. Furthermore, it wants the programme to be reworded in order that the clause does not only refer to companies but to individuals.
In respect of the programme mentioned in sub-section 2(2)(g), the Commission welcomes it as specific and addresses the needs of South Africa.
The Commission argues the programme should not only focus on existing facilities but should also include the establishment of new facilities. This argument is based on the fact many existing facilities, particularly the ones that were built during Apartheid are based within white communities and are not located close to black communities. And also the fact that there are not many facilities in the rural areas, particularly the deep rural areas.
In relation to sub-section 2(2)(h), the commission welcomes the programme. It suggests it be expanded and made to address homelessness amongst older persons.
In sub-sections 2 (2) (i) and 2 (2)(j), the Commission is uncertain as to the potential scope of these programmes. Regarding health systems, participants stated that government should continuously seek to expand health services to the elderly. The Commission suggests the programme on health systems should also look into the provision of special discount health services. In sub-section 2(2)(l), the Commission suggests that employment opportunities for older persons must be appropriate for the older person needs and abilities, in terms of age.
In sub-section 2(2)(o) the Commission welcomes the programme. It however suggests that public transport for the elderly should be free and subsidized. The commission further suggests that this programme should also look at safe transport. It also wants accessible transport to be interpreted broadly to include, among other things the inaccessibility of some busses and trains due to large steps, gaps and bus drivers pulling off before the elderly have sat down.
The Commission also wants bus drivers who transport dementia patients sometimes to be made aware and counseled in order that they are comfortable with their passengers and understand their behavior.
Recommendations The commission recommends the following additional programmes to section 2(2):
• Older persons forum
• Programme on HIV/AIDS and its impact on the elderly.
• Programme on education and awareness on elder abuse
• Programmes to address homelessness.
• A programme that includes traditional leaders in matters concerning
the elderly.
• Adult Basic Education (ABET) programmes
• Programmes that address intergenerational solidarity
• Programmes on eradication of poverty.
• Programmes that address dementia and Alzheimer’s, both in terms of
education and awareness but also in terms of services to sufferers and
their families and careers.
• More programmes to ensure an enabling and supportive environment for
older persons.
Submitted by Southern African Catholic Bishops’ Conference
The Conference reasons that in order for the value and contribution of older people to be fully realised, it is important to integrate them into the life of the community. This means, it says, that it is necessary to create and maintain a variety of programmes to encourage this integration. Recommendations
Section 2 (1) of the Bill states that ‘the Minister may … develop programmes’ and deals with the discretion that the Minister has in developing and supporting programmes for older people. As the Bill stands, the Southern African Catholic Bishops’ Conference says, these programmes are left to the discretion of the Minister, without creating mechanisms to ensure and assess compliance. It urges the Committee to consider making the development of such programmes mandatory with the necessary mechanisms created to achieve results.
In order to maximise the success of listed programmes in this section, the Southern African Catholic Bishops’ Conference suggests that the Minister be mandated to consult not only with other ministers, but with the many NGOs and CBOs that are active in this field.
Submitted by CJ Janse van Vuuren, Manager, Luipaardsvlei Tehuis vir Bejaardes, a branch of NG Welfare North West
Commenting on section 2. (e), (g) & (h) & (j), Mr van Vuuren says physically disabled adult persons (not necessarily older persons) were previously included in the category older persons, in providing accommodation, care, and so forth. He asks if they will now be excluded and wonders what will happen to the physically disabled adult persons currently residing in Care Facilities for older persons?
Recommendation
Mr Van Vuuren proposes that the entire Bill for Older Persons should be revised to state clearly how to deal with adult physically disabled persons in facilities for older persons.
Submitted by RAPCAN
Recommendations
RAPCAN would like to see government of South Africa acknowledging the tremendous sacrifices that, it says, so many older people are making to keep their families together and to raise this country’s future generations in the face of the HIV/AIDS epidemic. To ensure that these older caregivers are successful and that the children in their care have access to essential services as well as the opportunity to develop fully, healthily and happily, RAPCAN says programmes must be implemented with that in mind. As such, it recommends that the following additions be made to Clause 2(2):
❑ the provision of subsidies and or other financial assistance to older
persons caring for orphans; and
❑ the development and provision of support networks and opportunities
to older persons caring for orphans to help them cope with their new
and unique parenting roles.
Additionally, while RAPCAN applauds the inclusion of Section 2(2)(j) with respect to access to health care and support, it feels that it is necessary to include programmes to deal specifically with the HIV/AIDS crisis. Therefore, it recommends that the following objectives outlined in the Madrid International Plan of Action on Ageing[1] be taken into consideration:
❑ improvement in the assessment of the impact of HIV/AIDS on the health
of older persons, both for those who are infected and those who are
caregivers for infected and surviving family members; and
❑ enhancement and recognition of the contribution of older persons to
development in their role as caregivers for children with chronic
diseases, including HIV/AIDS, and as surrogate parents.
It further recommends the establishment of an intersectoral mechanism to coordinate and oversee the implementation of the programmes described above. RAPCAN also wants the Minister be granted greater flexibility in the identification and development of programmes currently not listed in the Bill. Such coordination and flexibility, it believes, will enhance to the best extent possible the ability of older persons to care for orphans and, as a result, will give these vulnerable children the best opportunity to grow and develop into happy, healthy adults.
Submitted by Eskom Pension Association
The Association is of the opinion that the retirement funds industry is set up inter alia to provide for the payment of pensions to persons who retired from retirement funds who had made contributions to the funds they were members of while in employment.
It believes that funds within the retirement funds industry could (subject to the Pension Funds Act and the fiduciary obligations of trustees in relation to investment decisions) be a possible source of development and investment funds for the types of programmes that section 2(b) contemplates.
The stakeholders to this Bill include retirement fund trustees, since they and pensioner associations (such as ours) are committed to promoting the interests of pensioners, who are also older persons.
Recommendation
In section 2(b) the Association believes that the programmes referred to should refer specifically to programmes that can be invested in by the: ❑ trustees of retirement funds registered under the Pension Funds Act, who by law must promote the interests of pensioners who obviously fall under the definition of “older person” in the Bill; ❑ employers who are participants in these retirement funds.
The programmes that they could invest in, the Association wants them to be mentioned in the Act and suggests the following:
❑ housing schemes for older persons;
❑ skills development and training initiatives for “community-based care
and support services” and “care” and management and financial
administration of a “facility”;
❑ skills development and training for self-help groups made up of older
persons, to develop income-generating initiatives
Submitted by Peter Laubscher, Executive Director, Leprosy Mission Southern Africa
Recommendations
Mr Laubscher says the elderly disabled find it very expensive to travel and sometimes the cost of visiting a local health facility can be intolerable and proposes the following solutions:
❑ Reduced fares outside of peak hours on Metrorail and buses
❑ Designated compartments for the elderly/ vulnerable on Metrorail
[this is practised in Asia]
❑ Taxis be required to offer discounted rates to the elderly disabled
outside of peak hours
Submitted by South African Council For The Aged
Recommendation
In section 2(1)
The Council proposes that “consultation” be replaced by joint mechanisms or partnerships, with Social Development as the lead Department. It also suggests that the nature of “support” be defined – as it stands it could not be costed.
In section 2(2)
The Council wants the Bill to give more direction and substance to the programmes. The more precisely a service is described the more likely it is to be implemented, it says. The Council suggests that the programs in this section be listed in order of importance and that priority be given to (a) (e) (h) and (j).
It also suggests the following proposals on programmes in this Chapter (with amendments underlined):
❑ “public education on ageing, the rights of older persons and their
social, cultural, economic and political contribution” The Forum
proposes that this program be combined with (k) and read as follows
“The formation of an national forum of older persons to advise the
Minister, ensure the participation of older persons in decision-making
and establish a national research plan and a communication network on
ageing”
❑ “access of older persons to information, education and training,
especially in rural areas”. This program, the Forum thinks, needs to
be spelt out – as it may be covered by other programs
❑ ”The protection of older persons and the education of carers and
communities on their rights and needs.” The Forum is of the view that
the issue of control of companies selling funeral policies and loans
is a burning issue for older persons, hence this programme.
Submitted by Alzheimer’s South Africa Alzheimer suggests that the following programmes should be included in this section:
(p) The training of health care professionals to deal with the specific problems or complexities associated with dealing with the elderly. (q) The establishment of a National Forum on Older People ® The needs of carers need to be addressed to support them in their work.
- Chapter 2 – [Ensuring an Enabling and Supportive Environment for Older Persons]
Submitted by South African Council of Churches The Council believes that one way in which the Bill may be strengthened in order to promote an enabling and supportive environment might be to recognise the need for a continuum of care services for the older person including primary care, family and community based care, professional and rehabilitation, long term and palliative care. The Council therefore reckons that the Bill could be considerably strengthened if it included the following: • A community plan to conduct a needs assessment for planning locally based care and health services that involves the participation of the older person; and • Regulatory mechanisms for such community and family based services as a continuum of care. Consultation with the Department of Health on this plan is essential, as with other programmes, that care for the older person needs to be mainstreamed into every relevant facet of government.
6.1. Facilities and services to comply with national norms and standards
Submitted by Action on Elder Abuse South Africa In this chapter, AEASA reckons that the Bill needs to focus primarily on community living where the majority of older persons live, rather than solely on residential facilities. Older persons, it says, need a continuum of care that can be outlined in three stages: independent living, assistance with daily living and finally frail care. This continuum of care can be provided in the community, including frail care, where possible.
Recommendation
AEASA suggests that the Bill focus on community based care as well as residential care. Many older persons, it says, are exploited due to a shortage of appropriate, affordable accommodation. It wants accommodation options explored where older persons can be accommodated in safety with their grandchildren where applicable.
National norms and standards for all residential facilities are imperative and all facilities should be subsidized on the cost of providing basic care. The registration and regular monitoring and evaluation of residential facilities by the Department of Social Development in conjunction with the Department of Health is vital to prevent and address elder abuse. It is of the utmost importance that this be included in the legislation. Facilities run by the State should be compliant with all legislation and not be exempted.
Service level agreements should be between the older persons as consumers of a service and the service providers, not between the consumers and the residents’ committees in facilities.
Submitted by CJ Janse van Vuuren, Manager, Luipaardsvlei Tehuis vir Bejaardes, a branch of NG Welfare North West
Referring to Section 3. (1) - (2), Mr Van Vuuren explains that according to the Older Persons Bill under discussion, facilities and services are subsidised by a provincial legislature for the benefit and caring of older persons. He then raises his institution’s concern in relation to the adult physically disabled persons already in residence in subsidized care facilities for older persons and wants to know whether this will constitute a contravention of the Bill?
Submitted by Joint Forum for Policy on Ageing
The Forum urges the Portfolio Committee to give consideration to the challenge of applying national norms and standards where there are wide disparities in resources and provision between and within provinces. It wants the level of subsidy to be based on the cost of basic care, taking account of various cost drivers.
Submitted by NAWONGO
In this section of the Bill norms and standards (Section 3(2)) are mentioned. Problems that are currently being experienced are:
❑ Conflicting standards set by the Department of Social Development and
Department of Health.
❑ Medico-legal risks
❑ Astute standards and maintenance thereof in facilities, while
private home care does not have meet the same standard.
NAWONGO wants to highlight the following as problems that it says are currently being experienced: • In the Bill the capacity of older persons to act (or the loss thereof) is not dealt with. • Also lacking are more comprehensive guidelines for the management of facilities.
The protection of the interests of both older persons and management in facilities, it argues, will be promoted by the availability of Codes and Procedures.
Recommendation
As in the case of the Labour Relations Act, NAWONGO suggests that perceived gaps in the Bill be filled with codes of good practice (as addenda to the Act). The codes could possibly deal with the following areas:
❑ Grievances and discipline in facilities
❑ Admissions and contracts with residents
❑ Management of facilities
❑ Transformation
As a way of alternative, NAWONGO says, the above could be set as prerequisites for registration.
Submitted by Pretoria Council for the Care of the Aged
The Council says that one of the main concerns in welfare is the current narrow and restrictive funding criteria, which are appropriated to fields of service. The modern approach, it goes on to say, is to encourage service providers to follow a multi-purpose approach and example, provide frail care to older persons, children with terminal diseases or every conceivable person in a terminal state of sickness or requiring frail care. Contrary to the modern approach, the Council then contends that the proposed bill entrenches the narrow view of compartmentalizing the funding of service provisions.
It urges that the, Bill should not perpetuate the narrow formulation of the provision of social services for the older persons only. The Bill, the Council reasons, should prescribe the principles for the protection of the older person including criteria such a good governance, standards of care and generally the protection of older persons as underscored by the constitution, whether such services are funded by government or not, incorporating the principles annunciated in papers such as the Madrid Declaration, which was adopted by the Minister at the International Conference on Ageing in 2002.
The Council therefore, suggests that the reference to funding and the intended controls stipulated in the bill and reference to same in the proposed regulations should be omitted and instead, incorporated in a separate legislation dealing with the entire spectrum of funding for social services across the board. One alternative, it says, is to expand the current Social Assistance Act to incorporate funding for services for the full spectrum of social services.
If all issues regarding funding are removed from the Bill, the Council contends that the intended benefits articulated for the protection of the older persons will become more apparent.
The Council is of the view that services to older persons are also governed by other legislations. It maintains that this Bill, in its current form does not acknowledge these links and in many instances is in conflict with other such legislations. For example, it says, the Housing Development Schemes for Retired Persons Act 65 of 1988 regulates and controls retirement housing for persons over 55 years of age and as such prescribes requirements in this regard which are different to those contained in this Bill
Submitted by South African Human Rights Commission The Commission welcomes this section. It is however uncertain about the content of the norms and standards, which, it says, are relegated to Regulations (Clause 21), which the Minister will draft after the passing of the Bill.
It also registers a concern that the Bill does not provide any time lines for the drafting of these norms and standards. It proposes that such a timeline should be included in the Bill. he clause demonstrates the drafters, possibly unintentional,
It says the title of this section and its wording refer throughout to ‘facilities and services’ and suggests that a more developmental approach would refer first to services and then to facilities. This, it says, would reflect the continuum of care, which older persons should have at their disposal.
It asks for norms and standards to be developed for home-based carers. It also wants home based care to be more formalized and home-based carers be paid some form of stipend by the State and that it should not be expected that these services be delivered for free.
Recommendation
The Commission suggests that a further section must be inserted providing that the Regulations for Norms and Standards must be drafted within one year of the coming into operation of the Act. It also wants the phrase ‘facilities and services’ be changed to ‘services and facilities’ throughout the Bill.
Submitted by South African Council For The Aged
The Council urges the Portfolio Committee to give consideration to the following: • How can national norms and standards be applied over all provinces, given the disparities in resources? This was a major concern in the NCOP. • Will norms and standards be established in consultation with stakeholders? • Can facilities be compelled to meet national norms and standards where the State subsidies only cover a part of their costs?
Submitted by Alzheimer’s South Africa
Alzheimer recommends that the norms and standards should also be made after consultation with other stakeholders, especially including those of older people. It wonders how prescriptive the Minister can be with the decreasing subsidies paid to homes that only cover a small percentage of the facilities costs.
6.2. Conditions of use, withdrawal and refunding of subsidies
Submitted by Cape Jewish Seniors Association
Recommendation
The Association suggests the following addition: • “thorough investigation first, only then followed by withdrawal of the subsidy in question after one month’s notice of intention to do so” in section 4 (3)
Submitted by Joint Forum for Policy on Ageing
This Section, the Forum says, is almost the same as Section 2A(1) of the Aged Persons Amendment Act. Under the Regulations of that Act, the Forum explains, subsidies were restricted to “residents who met the requirements determined by the Minister” and managers in receipt of subsidies had to allow inspections, report abuse and follow agreed accounting procedures. The last condition of the present Bill has now been amended by the NCOP by adding the requirement of a “register of assets bought with government funds”. It is doubtful if this is realistic. Substantial government capital funding of residential homes occurred under the previous regime when such registers were not required. Earlier attempts to uncover the whereabouts and extent of such “loans” have been unsuccessful.
Recommendation
The Forum would therefore like to recommend that “conditions for the use of a subsidy” be made part of a funding agreement between the state and the service provider.
The Forum considers the provision for the withdrawal of a subsidy after one months notice if any condition is not complied with too punitive a response. It argues that this sub-section must be made consistent with the Promotion of Administrative Justice Act with respect to time frames allowed for various steps taken in response to administrative actions. The Forum recommends that more graduated sanctions be provided for in the Bill. The Forum would like to see this Section addressing the issue of “duty to support” by the children of persons in receipt of subsidies in order to reduce the burden of residential care on the budget.
Submitted by NG Ministry of Caring
In section 4 (3) – The Ministry thinks that “one month’s notice” is not a reasonable practice
Submitted by Pretoria Council for the Care of the Aged
It is the submission of the Council that where the state provides funding or a subsidy, the terms of the funding or subsidy should be formulated in a funding agreement, consistent with the principles espoused in the bill, as and when the funding is offered.
The Bill proposes that when a subsidy is paid, the Minister must prescribe the conditions of use of that subsidy, including conditions regarding the accounting for the subsidy so paid. A more flexible approach, depending on the organization, its circumstances, the level of funding, the services offered and the ability of management, the Council says, should be adopted and reflected in a funding agreement between the state and the facility or organization.
The Council recommends that private organizations without any state subsidy or state involvement should be excluded from certain of the provisions contained in the proposed Bill. For example, it says, it is unconscionable that the Bill prescribes for the establishment of resident committees for facilities if more than ten older persons reside in a facility irrespective of whether the organization is for profit or not subsidized by the state. It therefore wants private organizations without any state subsidy or state involvement to be excluded from such prescriptive provisions contained in the Bill.
Submitted by South African Council For The Aged
The Council would like to recommend that “conditions for the use of a subsidy” be made part of a funding agreement between the state and the service provider.
It considers the provision for the withdrawal of a subsidy after one months notice if any condition is not complied with as appears in sub-section 4 (3 too punitive a response. It would like to see this sub-section made consistent with the Promotion of Administrative Justice Act with respect to time frames allowed for various steps taken in response to administrative actions. If a subsidy is withdrawn so that the service can no longer be provided, it suggests that an alternative provision be made for the older persons receiving such a service. And recommends more graduated sanctions be provided for in the Bill.
6.3 Prohibition on operation of unregistered facilities
Submitted by Joint Forum for Policy on Ageing
The Forum reckons that this Section is taken virtually unchanged from the 1967 Aged Persons Act.
Recommendation
On Section 5 (7) the Forum is the opinion that, while it is appropriate that the owner of a facility facing closure should have to take reasonable measures to ensure older persons are accommodated in another registered facility, the Bill should expressly recognize that the State has the final responsibility to ensure these older persons are taken care of.
Submitted by Pretoria Council for the Care of the Aged
Section 7 (8) of the Bill requires the manager of the which immediately, prior to the date of the commencement of the section is being subsidized by the state, must register such facility within 12 months of the commencement of the section. By implication, the Council contends that a facility which immediately prior to the date of commencement of the section, which is not being subsidized by the state, is not obliged to register. This anormally, it reasons, defeats the objects of the bill and it submits, no reason exists for the distinction between facilities, which are subsidized, or not. It is its contention that all currently registered facilities should be regarded as registered in terms of this bill.
The Council further says that the Bill is unclear as to whether all types of facilities as defined in section 1 (10) should formally register. There is a contradiction between section 7 (1) and section 8 (1), as in the former section, all facilities should register whereas the latter only requires notification, not registration in respect of unsubsidized services.
The Council further contends that The forfeiture of all assets bought with government funds or donated with the specific intention to assist older persons to the state if the registration of the facility has been cancelled or the owner of the facility wishes to close down or transfer that facility, is unconstitutional. It says the Bill does not distinguish between assets, which may have been acquired partially by state subsidization and by the facility itself. On account of the potential for dispute, which may arise pursuant to the provisions of paragraph 9 of the Bill, the Council submits that a dispute resolution process or an appeal process to any decision made by the Minister should be provided for in the Bill. It wants it noted that in terms of the NPO Act, all NPOs are required to include a specific dissolution clause, which states that the assets must be transferred to another similar organization.
Submitted by South African Human Rights Commission
The Commission raises concern about the practical implementation of the section and how facilities that are based in poor communities would access the process and communicate with the department.
Submitted by South African Council For The Aged
Referring to sub-section 5(7), the Council argues that while it considers appropriate that the owner of a facility facing closure should have to take reasonable measures to ensure older persons are accommodated in another registered facility, it suggests that the Bill should expressly recognize that the State has the final responsibility to ensure these older persons are taken care of.
Submitted by Alzheimer’s South Africa
Alzheimer asks about the criterion that is going to be used to register facilities under this section, and whether norms and standards will be the same as under section 3(2). It further asks if this is fair when they do not receive a subsidy from the state.
6.4 Minister to be notified of provision of certain services
Submitted by Cape Jewish Seniors Association
Recommendation
The Association suggests the following addition: • “ Community based service center” in section 6 (1)
Submitted by Joint Forum for Policy on Ageing
The Forum welcomes the removal of private residential homes from this Section so that they will now be obliged to register under Section 5 like other facilities, regardless of the number of older persons accommodated.
Submitted by South African Human Rights Commission
The Commission says this section is too narrow. Whilst the title of the section refers to services, it says that services are then narrowed down to in the content of the clause to luncheon clubs and home based care.
Recommendations
The Commission proposes the following changes: • Section 6 (1) should refer to the revised definition, as proposed earlier in the submission, and refer to clubs. • Section 6(1) should refer to services and community based care and support services. • Section 6(1) should state that a persons must notify, the Minister in the prescribed manner . . .” • Additional sub-sections, similar to the sub-sections contained in clause 5 and 7 should be inserted with deal with the registration and granting of subsidies to services. • The reference to accommodation in clause 6(2) is illogical as clause 6(1) only refers to luncheon clubs and home-based care. The word accommodation should be removed.
6.5 Compliance with conditions for registration of facilities
Submitted by Joint Forum for Policy on Ageing
The Forum argues that the addition of the requirement to hand over funds will conflict with the constitution of many institutions, which comply with the Non-Profit Organisations Act. This Act, the Forum says, requires that provision be made for assets of an institution closing down to go to another institution with similar aims.
Submitted by South African Council For The Aged
Commenting on sub-section 4 (1) the Council believes that the requirement to hand over funds will conflict with the constitution of many institutions, which comply with the Non-Profit Organizations Act. It therefore suggests that the Bill provides for assets of an institution closing down to go to another institution with similar aims.
6.6 Establishment of residents’ committees for facilities
Submitted by Joint Forum for Policy on Ageing
The Forum says many services to older persons need to comply with other legislation, where requirements for corporate governance are specific and mandatory (for example Section 21 companies must comply with the Companies Act). These, the Forum contends, conflict with the powers of residents committees provided for in this section;
The Forum wants a distinction to be made between the obligations and liabilities of owners, management committees and residents committees. It is problematic for government to legislate on how management or residents committees are constituted. Nor is it desirable for the Bill to contain prescriptive measures regarding the composition of governing bodies. The Forum argues that this is the responsibility of the relevant service provider.
Differing financial and other resources of institutions affect what they can reasonably do. The interests of the State in ensuring that unfair discrimination is prohibited would be adequately protected by requiring that governing bodies be representative of the relevant community as far as is reasonable and feasible. We understand that such provisions contained in funding agreements of the Gauteng Department.
The Forum wants consumers of any service to have some input into the conditions of provision of that service, and should have the right to obtain information regarding the service concerned. It says there should be a mechanism to enable older persons to obtain information, reasons for actions taken or not taken, and obtain recourse when they feel aggrieved. Again, a special protector or ombuds system would be appropriate here, the Forum reckons.
Submitted by NG Ministry of Caring The Ministry is of the opinion that the screening procedures listed in section 8 (2) (a-c) are unrealistic and will make it impossible to admit older persons who are still physically and mentally able to serve on committees and make well-considered and meaningful resolutions.
Submitted by CJ Janse van Vuuren, Manager, Luipaardsvlei Tehuis vir Bejaardes, a branch of NG Welfare North West
Recommendation
Mr Van Vuuren is the opinion that when the Minister prescribes the composition of a “residents’ committee” for a Care Facility for Older Persons, it must be taken into account that, due to their physical condition, most of the residents will not be able to serve on a residents’ committee, and that their family members should represent them.
Submitted by Pretoria Council for the Care of the Aged
The Council reckons that the establishment of a resident’s committee for facilities in the Bill does not prescribe the role that such a resident’s committee should play and what powers it will have in the management or administration of a facility or organization. Without this essential information, It contends, it is not possible to consider the impact of such a clause on organizations.
It further reasons that the imposition of a resident’s committee for a facility or organization, which is established for profit or receives little or no state subsidy, is unwarranted.
Submitted by South African Human Rights Commission
The Commission submits it will be extremely problematic and difficult to comply with this section. It criticizes this section for what it calls subtle preoccupation with old age homes. Whilst the definition of facility refers to community based care and support services, it maintains that it is clear that the use of the word resident in this clause refers only to old age homes or residential care.
It sees it as impossible and illogical task for a community-based care and support service to establish a residents committee. These services may well have a transitory group of recipients.
Recommendation
The Commission proposes a revision of this section. It suggests a determination whether the clause is intended to apply to residential care facilities only. If so, it wants this to be stated. It also suggests a legal determination of whether the residents can in fact ensure that a manager carries out the functions set out in clause 8(3). It also suggests that an obligation to be created that older persons are entitled to be consulted on and participate in the decision-making processes concerning the matters contained in sub-section 8(3). Furthermore it proposes that a separate section should be inserted that refers to how older persons will be consulted and included in the decision-making processes in community based care and support services.
Submitted by South African Council For The Aged
The Council says that many services to older persons need to comply with other legislation, where requirements for corporate governance are specific and mandatory (for example Section 21 companies must comply with the Companies Act). It contends that these conflict with the powers of residents committees provided for in this section.
It suggests that a distinction be made between the obligations and liabilities of owners, management committees and residents committees. It considers it problematic for government to legislate on how management or residents committees are constituted and undesirable for the Bill to contain prescriptive measures regarding the composition of governing bodies. It sees this is as the responsibility of the relevant service provider.
It also says that the interests of the State in ensuring that unfair discrimination is prohibited would be adequately protected by requiring that governing bodies be representative of the relevant community as far as is reasonable and feasible
6.7 Admission to facilities
Submitted by Highlands House
Referring to section 9 (1), the Highlands House, whose admission policy discriminates against all applicants who are not Jewish, is concerned that the specific punitive measures in the Bill will have other unintended, and unconstitutional consequences for facilities which, it says, legitimately operate for the benefit of members of a particular religion. As an example, the only requirement that Highlands House says it takes into account in its admission policy is that the applicant for residence must be Jewish. It denies that a person’s race does enter into the consideration. Forcing Highlands House to replace this primary consideration with a requirement to consider demographic representivity [in terms of section 9(2) of the Bill], Highlands House says, will violate the rights of it and its residents to religious freedom [in section 15(1) of the Constitution]; freedom of association [section 18 of the Constitution]; cultural life [section 30 of the Constitution]; religious practice [section 31(1)(a) of the Constitution]; and to form, join and maintain a religious association [section 31(1)(b) of the Constitution]. It further claims that section 9(2) of the Bill will also violate the rights of the current residents to dignity [section 10 of the Constitution]; property [section 25 of the Constitution]; access to existing housing [section 26 of the Constitution]; and access to existing health care services, food and water, and social security [section 27(1) of the Constitution].
Highlands House contends quite strongly that the Bill in its current form is unconstitutional on the basis that it constitutes a violation of rights contained in the Bill of Rights and such a violation, it says, is not “saved” by the limitations clause in section 36 of the Constitution. Recommendation
The House suggests the following as ways in which, it says, such unconstitutionality can be cured whilst the purpose of the legislation is maintained.
• The concept of “unfair discrimination” in section 9(1) of the Bill
should be defined to mean the same as its meaning in Pepuda;
• The requirement set out in section 9(2) of the Bill should be
qualified. The requirement concerning the consideration for
determining eligibility for admission to facilities contained in
section 9(2) of the Bill should only be operative when unfair
discrimination based on race is involved; and
• In the alternative, the Minister should be granted the power under
section 5 of the Bill to exempt any facility from the obligation to
satisfy the requirements of section 9(1), read with sections 9(2) and
9(5) of the Bill.
Commenting on section 9 (4) the Highlands House says the Bill does not make it clear whether the punishment for contravention of this section in respect to a facility will be levied against the facility or the admitting officer.
The Highlands House also argues that there are a great many cases in which, it says, consent to their admission to a facility due to medical conditions such as Alzheimer’s disease or senile dementia. It says it is neither practicable nor desirable that these individuals remain in their own homes. It says they require medical treatment and if left to their own devices, pose a significant danger to themselves and others due to the increased risk of (otherwise avoidable) accidents.
In these circumstances, Highlands House submits that legislation should facilitate, rather than hamper, the admission of these individuals to registered facilities.
The requirement for a Court order as a pre-requisite for admission, the Highlands House contends will strike a disproportionately heavy blow to the most vulnerable members of any community. The House says the difficulty in finding a facility which is prepared to admit a poor, senile individual will be compounded if that facility must first go through the potentially expensive process of attaining a court order.
Highlands House submits that the financial realities faced by facilities, whether private or public, will by themselves militate against ‘forced’ admissions. The House suggests that a distinction must be made between those older persons who are capable, and who are not capable of giving their consent to admission. The determination whether a person is capable of giving consent, it argues, can be made by a medical professional.
Recommendation
In this regard Highlands House suggests that section 9(4) could be amended to read as follows: “No older person capable of consenting to his or her admission to a facility may be so admitted without his or her consent excepting in terms of an order of a court”; or section 5(5) could be amended to include a provision that a facility’s registration will be withdrawn by the Minister if that facility is found to have admitted persons capable of giving their consent against their will.
Submitted by Joint Forum for Policy on Ageing
The Forum welcomes the changes made by the NCOP to this Section, namely that written reasons be provided for refusal of admission and 9(4), which is new. It however contends that the obligation to give reasons should extend to all actions taken by providers of services, and the section should make it clear that the reasons must be substantive. Furthermore, it wants some avenue of recourse following the receipt of reasons to be provided for.
Submitted by CJ Janse van Vuuren, Manager, Luipaardsvlei Tehuis vir Bejaardes, a branch of NG Welfare North West
Mr Van Vuuren says that a facility that provides for the care and needs of older persons must have admission rules by which they can exclude the admission of mentally/psychologically disabled older persons. He further states that older persons suffering from dementia are not included in the aforementioned category. He also maintains that most of the facilities that provide in the care of older persons do not have the facilities (accommodation) and trained staff to care for mentally/psychologically disabled older persons.
He asks if it is the appropriate Provincial Legislature that is going to pay the full required fee should an older person be ordered by court to be admitted to a facility
Submitted by Pretoria Council for the Care of the Aged
The Council submits that section 11 (3) and (4) are too widely stated. Many facilities as defined exists where the state makes no or only a small subsidy or contribution to the well-being of such facility and, under such circumstances, it argues that the state should not be able to prescribe criteria for admissions and tools to determine admission criteria. It is opposed to any situation where a state enjoys influence in facilities where it makes no contribution in order to promote private initiatives, provided that the facility complies with the requirements of the Bill.
Submitted by South African Human Rights Commission Recommendation
The Commission proposes that this section should refer specifically to residential care facilities. It says that is justifiable, in light of a particular history concerning old age homes, that affirmative action measures are created in legislation to address the imbalances of the past. It further suggests if the intention for this section is to refer to community based care and support services then this should be stated clearly. It proposes that a separate section could be created to address discrimination in this context.
It suggests that a further section referring to recipients of community based care and support services should be added to the Bill.
The reference to manager in section 9(3), it says should be changed to operator.
Submitted by South African Council For The Aged
Referring to sub-section 9(3) welcome the changes made by the NCOP to this section, namely that written reasons be provided for refusal of admission and 9(4), which is new. The obligation to give reasons should extend to all actions taken by providers of services, and the section should make it clear that the reasons must be substantive. Furthermore, some avenue of recourse following the receipt of reasons should be provided for, which again highlights the importance of having a special protector or ombuds system (See motivation at the end of Chapter 3.)
Submitted by Alzheimer’s South Africa
Referring to section 9 (4), Alzheimer thinks this has direct implications for elderly people suffering from dementia that have no contractual capacity and argues that due to their cognitive decline and the fact that their insight and judgment is impaired, they are not able to complete and or sign the application forms giving their consent. It says that those that are still able to communicate may express that there is nothing wrong with them and that they are capable of caring for themselves, when the reality is very different. It goes to say that getting a court order is an expensive and time consuming event that is not practical or financially possible in most situations. Often, Alzheimer says, it is in their best interests to be admitted to a facility as they are in need of nursing care and could be posing a danger to themselves or to other people. Under these circumstances, Alzheimer feels that the fact they cannot give consent should not mean that the person signing on their behalf is guilty of an offence as stated in section 5. Alzheimer reasons that if the person does not admit them to a facility when they are needing care, they are likely to be guilty of a crime under section 13 – as they will be guilty of the abuse or neglect of an older person.
Alzheimer therefore recommends that this section read as follows: 9(4) “No older person may be admitted to a facility without his or her consent, a court order or where they would at risk if not admitted”.
6.8 Monitoring of registered facilities or places
Submitted by Directorate: Chronic Care Rehabilitation
Recommendation
The Directorate suggests that the Bill must include the Department of Health in monitoring or registration of homes for older persons as mandatory. It considers this essential. The Directorate claims that the Health act legislates that the department of health is responsible for health care. It therefore suggests that the Bill must make provision that the Department of Health ensures it has the capacity to monitor the care of Older persons in the various settings as well as Old Age Homes.
Submitted by Joint Forum for Policy on Ageing
The Forum wants monitoring provisions to apply to services provided in all facilities, whether registered or not, as well as services provided outside facilities.
For example, Section 43(1) of National Health Act requires the Minister to prescribe minimum standards for the provision of health services in locations other than health establishments, including schools and other public places. This must cover residential homes for frail older persons. However, the Health Department does not yet fulfil this oversight role here. The Forum wants the Bill to provide a mechanism, which is linked to the monitoring requirements in order to overcome this gap.
It would be helpful if the Bill specified the purpose of the monitoring system, linked monitoring to the quality of care provided to other persons, and provided for remedies where the results of the monitoring process show that norms and standards are not being complied with. There should also be an obligation on the monitoring body to inform affected institutions of the results and findings of any monitoring or investigation, with a corresponding right for any institution to respond or take remedial steps before other actions are taken as a result of the monitoring findings.
The Forum would also like this Section to give more emphasis to the monitoring role of “persons designated by the Director General” as it says many older persons’ perception of social workers is extremely negative, especially in disadvantaged communities
Submitted by NG Ministry of Caring Referring to specifically to section 10 (c), the Ministry is of the opinion that social workers have limited knowledge of health care and might not be the appropriate discipline for this function.
Submitted by Pretoria Council for the Care of the Aged
The Council submits that the majority of abuse of older persons exists in the communities and not in facilities or organizations and a glaring omission from the provisions of the Bill is the ability of social workers to monitor older persons housed in private homes.
The Council contends that the Bill does not make provision for the inspector or social worker to make a report available to the facility or organization, which has been visited by the inspector, or social worker pursuant to the provisions of this paragraph. It further argues that the relevance of a social worker visiting or monitoring a facility or organization, interviewing any older or frail person or directing the person to submit documentation in the context of the Bill is not understood. It adds that the Bill does not prescribe what the director general should do with such reports or what the relevance of such reports would be to the director-general.
Submitted by South African Human Rights Commission
The Commission raises a concern that there are not enough social workers to carry out the duties that are created in this section.
Recommendation
The Commission proposes that term “places” in the title should also be reconsidered. It wants it be changed registered community based care and support services.
Submitted by South African Council For The Aged
The Council suggests that monitoring provisions should apply to services provided in all facilities, whether registered or not, as well as services provided outside facilities. It thinks it would be helpful if the Bill specified the purpose of the monitoring system, linked monitoring to the quality of care provided to other persons, and provided for remedies where the results of the monitoring process show that norms and standards are not being complied with. It also recommends that there should also be an obligation on the monitoring body to inform affected institutions of the results and findings of any monitoring or investigation, with a corresponding right for any institution to respond or take remedial steps before other actions are taken as a result of the monitoring findings.
6.9 Report to Minister by managers of facilities
Submitted by Pretoria Council for the Care of the Aged
The Council reckons that the Bill assumes that all services for older persons are subsidized and Bill envisages using the subsidy for the basis to control institutions and enforce the government’s policy and directives.
It argues that the requirement for the manager of a facility to furnish a report within 60 days after the end of the financial year on compliance with the prescribed service standards and the prescribed measures with the prescribed service-standards and the prescribed measures to prevent and combat abuse of older person during the financial year is debatable. The inappropriateness of such a requirement, it says, is demonstrated by the proposed penalty contained in the bill, which prescribes that when the manager of a facility fails to submit a report, the Minister may withdraw any subsidy paid in respect of that facility.
It says that it should be noted that reports are already required in terms of the NPO Act and also by provincial departments in respect of financial service plans. In its opinon, should a further report be deemed to be essential, It says, it should contain meaningful information, and not merely be a repetition of information already supplied.
Submitted by South African Human Rights Commission
The Commission is concerned that the reporting requirements may overlap with the provisions contained in the Non-Profit Organizations Act, 1998.
Recommendation
The Commission proposes that section 11 should be placed immediately after section 4. It suggests that all reporting requirements should be contained in one section believing that the failure to do this may create confusion. It wants to see a determination of different reporting requirements for residential facilities versus community-based care and support services. This, it says, should be reflected in two different clauses.
- Chapter 3 – [Protection for Older Persons]
7.1 General overview of the chapter
Submitted by South African Human Rights Commission
The Commission registers what it says is a general concern that the chapter makes little provision for abuse that occurs in private homes and in the community. It says the chapter deals predominantly with abuse that occurs in institutions and provides mechanisms to address instances where such care is injurious to the older person or where the older person is taken advantage of (section 14 and 15).
It wants the Bill to reflect a community orientated approach to the care of the elderly and de-emphasize a facility-based approach.
The ordering of the clauses in the Bill, it says, should reflect the progressive developmental approach of protecting older persons in the community and provide protection mechanisms in the different forms of care which they may encounter during their ageing process. In other words the Bill should provide protection for persons in the community, thereafter for persons living in private residences and participating in community based care programs and finally, protections should be provided for older persons who live in institutions
Recommendation
The Commission suggests that this could be achieved if the sections were placed in the following chronological order:
Section 16 - Notification of abuse of older person Section 18 - Older Persons in need of care and protection Section 14 - Procedure for bringing person who accommodates or cares for older of frail person before magistrate Section 15 - Enquiry into accommodation or care of older or frail person Section 13 - Prohibition of abuse of older persons. Section 17 - Keeping of register of abuse of older persons Section 12 - Rights of older persons in facilities
7.2 Rights of older persons in facilities
Submitted by Action on Elder Abuse South Africa
AEASA is of the opinion that Section 12 (Rights of older persons in facilities) should appear at the beginning of Chapter 2 and that Section 18 (Older person in need of care and protection) should be brought forward to the beginning of Chapter 3.
Submitted by NAWONGO
Recommendation
Although section 12 does refer to the rights of older persons in facilities, NAWONG believes that an exposition of all the rights of older persons elsewhere would be of great value. This can be added, if deemed to be more practical, as a schedule to the Act.
Submitted by Pretoria Council for the Care of the Aged
Council contends that rights should apply to all older persons, not only those in facilities.
Council reckons that the right of older persons to be informed about the financial status of the facility and changes to management is vague and embarrassing. It wants to see provision made for residents of facilities or organizations to receive annual financial statements of such facilities or organizations and a notification of any change to management.
It further says that chapter 3 also introduces the rights of older persons in facilities to have access to basic care but argues that basic care is not defined in the Bill. It wants the reference to the word “basic” omitted.
Submitted by South African Human Rights Commission
The Commission remarks that it is clear that the rights identified in clause 12 refer to older persons who live in residential facilities. The section refers to transfer, discharge, keeping and suing personal possessions, reasonable access to visitation, etc. . . . Clearly, the Commission considers it illogical that these rights could refer to older persons who are recipients of community-based services as are included in the definition of facility.
Recommendation
The Commission suggests that the section needs to state clearly in its heading that these rights are conferred upon persons residing in facilities. • The right to dignity should be included. • The right to privacy should be expanded. • Clause 12(b) is worded clumsily. The word visitation is not the correct word to be used in this context. The clause should read: “ . . . the right to receive visitors • The have reasonable access to assistance should be a separate right. right to . . .
Submitted by South African Council For The Aged
The Council proposes that this section be moved to the beginning of Chapter 2
Submitted by Alzheimer’s South Africa
Alzheimer feels that this section in its entirety should be moved to the start of Chapter 2. In addition, it feels that section 18(5)(a)(i) should be moved to the beginning of Chapter 3 as it thinks this would provide a definition of an older person in need of care and protection and should introduce the chapter.
7.3 Prohibition of abuse of older persons
Submitted by South African Human Rights Commission
Recommendation
The Commission suggests a revision of definition of abuse order that it is clear what forms of conduct amount to abuse in terms of this clause.
Submitted by South African Council of Churches
The Council applauds the steps that recognize the criminalisation of older person abuse but questions whether the “naming and shaming” of abusers will produce significant prevention and or awareness of older person abuse. It says other practical problems that arise are whether the removal of the victim from the place where he or she is abused will bring satisfactory justice for the victim or whether trauma may not be further exacerbated. Frequently, it reckons that the older person as victim may be further traumatized if she or he becomes the centre of attention within that family or community from whom she or he is removed. The Council enquires whether in such an instance of older person abuse, it may not be more appropriate for the alleged abuser or offender to be removed from the place of care and dealt with in terms of criminal law. A further point of concern is the message sent out by trying to deal with abuse primarily through the criminal justice system.
7.4 Procedure for bringing person who accommodates or cares for older person before magistrate
Submitted by Action on Elder Abuse South Africa
AEASA claims that this procedure has largely been taken verbatim from the 1967 Act and considers it impractical.
Recommendation
AEASA suggests that the procedure needs to be made as user friendly as possible, yet at the same time ensure protection of the older person from even further exploitation. The training and sensitizing of staff in the Justice Department would be a key element in making this legislation easier to implement as well as provision being made for older persons to give evidence in camera, as this would reduce the fear factor that many older persons experience when being asked to testify in court, AEASA reckons. It also wants the Department of Justice to be sensitive too, to the reasons making older persons to frequently withdraw charges that they have laid due to dependency on or pressure from family members etc. and ensure that cases are not dropped before they have been fully investigated. In most situations older persons are dependent on their abusers whether it be financially or from a care aspect. Perpetrators who have become addicted to substances such as drugs and alcohol frequently abuse older persons to obtain money to fund their habits or become physically aggressive as a result of their addiction. Another problem area are adult children suffering from mental disability such as Schizophrenia refusing to take their medication and subsequently displaying aggressive and sometimes life threatening behaviour towards their older parents. Presently the Mental Health Act allows for the removal of these persons to a mental health facility for a few days, but they return home and the cycle of abuse begins again. AEASA suggests therefore that the legislation allow for the removal and rehabilitation of the abuser where necessary rather than removing the victim who is the innocent party.
Submitted by Pretoria Council for the Care of the Aged
The Council charges that the provision of section 14of the Bill focuses only on the perpetrator and does not address the resultant needs of the victim. It is our contention that a direct reference to section 20 should be incorporated to ensure that the older person receives the required care.
Submitted by South African Human Rights Commission
Recommendation
Whilst the Commission agrees that these provisions remain in the Bill, it urges the Committee to make serious inquiries with the Departments of Social Development and Justice on the current use of these provisions, determine why they are not being used and thereby ascertain if further clauses are necessary to address these deficiencies.
It also proposes that: • The Bill should provide for alternatives to such a formal procedure. • The Bill should provide for education and awareness raising about abuse. • The Bill should include provisions that provide for mediation with offenders, particularly family offenders where the abuse is not of a severe nature. • Preventive measures against abuse need to be provided for in the Bill.
7.5 Enquiry into accommodation or care of older person
Submitted by Cape Jewish Seniors Association
Recommendation
Referring to section 15(5), the Association suggests that the enquiry is always held behind closed doors as it reportedly feels that this lessens the feeling of intimidation for the older person. In section 15 (8), the Association suggests the addition of “social worker can also be asked to furnish a report ”.
7.6 Notification of abuse of older persons
Submitted by Action on Elder Abuse South Africa
AEASA says there are no timeframes given, for example, it is not specified that when the Director-General receives notification of the abuse of an older person, action must be taken within a certain period of time. AEASA fears that if timeframes are not specified, secondary abuse or traumatization can occur.
Recommendation
AEASA suggests that mandatory reporting should be confined to categories of abuse. While, it believes that older persons of sound mind are adults and as such their decision as to whether to report the abuse or not should be respected, it also argues that older persons who are mentally incapacitated, for example, those suffering from dementia, need the extra protection that mandatory reporting would provide.
AEASA also feels that mandatory reporting would, to a certain extent, be a deterrent, and could curb the amount of harm done to an older person.
AEASA strongly advocates for consideration of older people living in rural areas. It cites what the Act stipulates in Section 16 that the Director- General must be notified –and asks - who represents the Director-General in the rural areas? It suggests that the role of the Traditional Leaders must be recognized in the legislation and protocols observed, for example, before an older person in an abusive situation is removed to a place of safety. In such situations, AEASA wants the Chief’s permission be sought.
AEASA suggests that the term “place of safety” in place of “hospital” in Section 16 (2) (a). The reason for this, it says, being that not all abuse is of a physical nature, and this would be broad enough to cover rural areas where there are no hospitals. If there were physical injury to an older person, it says, a hospital would also be considered a place of safety.
AEASA is in complete agreement with the change made by the NCOP that the procedure should include any person who abuses an older person, not just those who care or accommodate them.
While, it acknowledges, it is common law that children have a legal and moral responsibility to provide for their parents if they are financially able to do so, AEASA suggests that this be included in the Bill as failure to do so is tantamount to elder abuse.
Submitted by Southern African Catholic Bishops’ Conference The Bill proposes mandatory reporting of abuse by ‘any person who suspects’ that an older person is the victim of abuse. The Conference wants this proposal carefully considered before it is implemented. Unlike children in abusive situations, the Conference holds strongly that older people are adults who are competent. By introducing mandatory reporting, it feels, this is being undermined and their right to autonomy may be violated.
Section 16 (2) (a) proposes that the Director-General must arrange ‘for the removal of the older person concerned to a hospital in case of injury or to such other place as the Director-General may determine If enacted, the Conference thinks, this clause would have a number of ramifications. Firstly, it says there would have to be enough facilities to accommodate the elderly abused who are being relocated from their homes.
Secondly, it says that the removal of the older person is likely to be traumatic and, in a sense, is punitive. While the alleged abuser stays in the residence, the abused is removed from the situation. Taking into account the possible psychological trauma that may result, as well as the practicalities in relocating the older person, the Conference suggests that it is the alleged abuser that may need to be removed from the residence.
It further says that it is also necessary to look at the desirability of mandatory reporting on all people. While it is undeniable that there are certain categories of people who should have a legal duty to note and report suspected abuse (such as social workers or health care professionals), it feels that it is contentious to suggest that all people have this legal responsibility. It therefore asks that the Committee carefully consider this while deliberating on the Bill.
Submitted by Peter Laubscher, Executive Director, Leprosy Mission Southern Africa
Mr Laubscher says elderly people, especially those drawing pensions, are subject to high levels of crime and their safety is often in jeopardy. A related problem, he says, is that many of these patients are unable to sign for the pension payments as they do not have fingers and are unable to write or to give a thumbprint. They are dependent on ‘procurators’ to go with them to receive the payments and these assistants often steal some of the money.
Although she gives money to her family to buy groceries for her, Mr Laubscher says, she seldom has any supplies in the house, as the family steals the money.
Submitted by South African Human Rights Commission
Recommendations
In section 16(2), the Commission proposes that the words “where appropriate” should be added. It argues that not all cases of abuse warrant the removal of the older person to a hospital. It considers expensive, very onerous on the State and highly disruptive and further upsetting to older persons in some cases. Referring section 16(2), it says hospitals should not be the only permissible destination for older persons who are removed from the abusive situation. It wants the Bill should state the other options such as the following: • Safe houses, • Shelters, • Old age homes, • Step down facilities etc. …
The Commission suggests that section 16 should compel the Director-General to initiate criminal avenues of redress when reports of abuse are received.
Submitted by Alzheimer’s South Africa
Alzheimer is concerned about this section as it says it places as much responsibility on the public as it does on Health Care Practitioners. It feels that the latter should be mentioned as in the Aged Persons Amendment Act No 100 of 1998 in order for them not to be an abdication of responsibility to the family and to secure that notification does not take place. Furthermore, it feels that the Director-General is inaccessible and not always a practical channel for reporting abuse and awaiting instruction.
Recommendation
It recommends that section 16(1) should rather read as follows:
“Every registered health care practitioner (medical practitioners, psychologists, dentists, social workers, occupational therapists, physiotherapists) or any other person who examines, attends to or who comes into contact with an aged person and suspects that an aged person has (a) been abused; or (b) suffers from any injury related to the abuse shall to immediately notify the Director-General or an organization designated by the Director-General for reporting abuse”.
It further suggests, in respect to section 16(2) that there should be a time frame for the arrangement of necessary treatment and a response from the Director-General as we are dealing with vulnerable older people who have been abused, and that the notification needs to be responded to urgently and not have to go through bureaucratic channels in order to be able to assist the elderly person.
Submitted by Pretoria Council for the Care of the Aged
The provisions of section 16 (2) (b) of the Bill provide that the director general must arrange that the older person receives the necessary treatment. The Council charges that the Bill does not prescribe who the director-general may order to pay for such treatment or determine under any circumstances who is liable for the costs of such treatment the older person is obliged to receive.
The Council says it is often difficult for older persons suffering such abuse to escape an abusive situation because of financial and other dependence and suggests that practical alternatives such as the removal of the abuser, rather than the older person, should be provided. Whilst it welcomes the extension of the obligation to notify abuse to all persons who witness abuse of older persons the Council thinks this section of the Bill should include an obligation on the Director General to investigate allegations of abuse. It suggests that the section should also provide for the identification and use of safe beds, to which older persons could be removed.
7.7 Keeping of register of abuse of older persons
Submitted by Pretoria Council for the Care of the Aged
The Council reckons that the Minister should not be obliged to keep a register of all notifications in terms of section 17(1) in circumstances where no finding of guilt was made pursuant to a notification referred to in Section 17(1) of the Bill. In other words, the Minister must distinguish between notifications where a finding of guilt is made, as opposed to notifications where no finding of guilt is made.
Submitted by Southern African Catholic Bishops’ Conference
Section 17 proposes that the Minister must keep a register of people convicted of abusing an older person and that this must be accessible to the public.
When looking at the question of registers, the Conference thinks, it is necessary to have clarity on what the purpose of the register is and how the information contained therein will be used. It further says that it is also important to know what information will be in the register and who will compile and maintain it. Establishing a register, it says, also poses the question of how long an offenders’ name will be on the register. In addition to this a register is not always easily accessible to the public and those who need to have access to it.
The Conference holds a view that a register, as conceived in this section, may be limited in effectiveness and may create a false sense of security. It contends that only a small number of people are convicted of abuse, which means that the information contained in the register will only represent a very small number of those guilty of abuse and is by no means an extensive list. It also wonders whether this section will also apply to people who are convicted of abuse under other pieces of legislation, such as the Domestic Violence Act.
Submitted by South African Human Rights Commission
Recommendations
The Commission thinks section 17(2) is too narrow, and suggest that the word facility should be replaced with residential facilities and any community based care and support service. Furthermore it suggests that persons convicted of abuse should not be allowed to work in community based and especially home-based care services.
It further proposes that the register must include the names of offenders who are convicted of offences in which the victim is an older person. In this manner, it says, it will ensure that more offenders’ names will be placed on the register. It is possible that offenders will not be prosecuted in terms of the Older Persons Bill but rather in terms of other common law or statutory criminal offences. It says more clarity is needed in the Bill on the Register. It wants this to be spelt out more clearly in the Bill. Some of these issues include:
• We need to consider what is the purpose of the Register?
• How will it be used?
• What information should be recorded on it?
• Who will compile it?
• Who will have access to it?
• How long will a perpetrators name be on the register, it cannot be on
forever surely?
• How will perpetrators be rehabilitated?
• What about persons who abuse the elderly and are convicted of more
serious crimes (e.g. rape), in terms of the present legislation their
names would not appear on the register as the charge would not be
abuse in terms of the Bill but rather common law rape.
Submitted by Alzheimer’s South Africa
While in principle, Alzheimer feels that this is important and needs to be implemented; it argues that the practicalities are not that clear. It suggests that the record of notification, which was previously removed by the NCOP, should be reinstated into the Bill.
In respect of section 17(2), Alzheimer says that while there is agreement that peoples whose name appear in the register should not work with the elderly, it is concerned that this only applies to them working in facilities, which means that they could still be employed to work with the elderly in the community (e.g. providing home-care services).
7.8 Older person in need of care and protection
Submitted by Action on Elder Abuse South Africa
AEASA is not happy with the fact that the time frames are not specified, and once the report has been made to a social worker, there is no “spur” for action to be taken. It alleges that the fact that there is a reported shortage of social workers in the Department of Social Development and in many other organizations, this will place a significant pressure on these staff members to attend to cases involving children first and foremost, which means that the abused older person might not be assisted.
In section 18 (5) (d), AEASA is also greatly concerned over homelessness amongst older persons. It does not understand why a shelter” is defined but not utilized in the Bill.
Submitted by South African Human Rights Commission
The Commission says the section places too much responsibility on social workers that, it says, are currently stretched in terms of the amount of work that it is expected of them. The ability of social workers to cope with this additional workload, the Commission, will determine whether the section will be used and adequately implemented in order to achieve its objectives. The Commission alleges that this section fails to give older persons a voice as it does not provide for them to report incidences of abuse of which they are the victims. The Commission stresses the importance of recognizing, encouraging and empowering older persons to have their own voice and where possible to report abuse that they suffer themselves. It also claims that the section fails to provide for an intersectoral inter departmental and inter organizational coordinating structure that will ensure the holistic and adequate implementation and realization of the Bills stated objectives and duties that it is imposes.
Recommendations
The Commission proposes that section 18(3) should be amended as follows: “The Director-General, social workers, or investigator recognized by the Department and working under the supervision of a social worker, to whom a report has been made must investigate the matter.”
It further proposes that section 18(2) could be amended as follows: Any person, including an older person, other than a person in subsection (1) who is of the opinion that an older person, or himself or herself, is in need of care and protection may report such opinion to a social worker.
- Chapter 4 [General and Supplementary Provisions]
8.1 Delegation
Submitted by South African Council For The Aged
The Council thinks it is important that norms and standards established under the Bill are national. It therefore wants the delegation provisions to recognize this. It is opposed to idea of the establishment of norms and standards being delegated to provinces. Furthermore the Council suggests that the delegation provisions should also be compatible with the constitutional powers of and relations between national and provincial spheres
Regulations
Submitted by South African Council For The Aged
The Council suggests that some provision should be made for the funding of compliance with regulations, especially under minimum norms and standards for admission to facilities, the use of subsidies and service standards. It also wants to see broad consultation with stakeholders where regulations are made.
-
Report of the Portfolio Committee on Health on the Annual Report of the National Department of Health 2004/2005 and for it’s entities the Council for Medical Schemes and the Medical Research Council, dated 15 November 2005:
The Portfolio Committee on Health, having considered the Annual Report of the National Department of Health 2004/2005 and for it’s entities the Council for Medical Schemes and the Medical Research Council, referred to it, reports that it has concluded its deliberations thereon.
The Committee further reports as follows:
- Background information on submitting annual reports of the Departments and entities reporting thereto to Parliament
On the 30th of September 2005 the National Assembly referred the Annual Report of the National Department of Health 2004/2005 and it’s entities the Council for Medical Schemes and the Medical Research Council, Department to the Portfolio Committee on Health. The Committee decided to call upon these entities for extensive hearings on their Annual Reports, Financial Statements, and the report of the Auditor General. In terms of current National Assembly processes, all Parliamentary Portfolio Committees are required to consider and report on the annual reports of Departments and public entities after they are tabled in Parliament. The objective for consideration of the annual reports is to assess the performance of the department and public entities that report to the Department against the targets set in the previous financial year. Furthermore, the purpose of processing the annual reports from both the National Department and entities reporting thereto, is to ascertain whether the strategic plan, budget and business plan are in line with the requirements of section 654 (1) of the Public Finance Management Act (PFMA). The Committee, having oversight over the Department of Health together with entities that report to the Department, in terms of fulfilling its functions, has to report to Parliament on the Annual Reports, which cover all activities that the Department has done during the year ending on 31 March 2005. This also applies to the financial statements that that Department must submit. The Committee having heard and considered evidence on the Annual Report of the National Department of Health 2004/2005 and it’s entities the Council for Medical Schemes and the Medical Research Council presents its report thereon. 2. Overview of presentations on the Department of Health and its entities 2.1 Department of Health The Director General for the National Department of Health, Mr T Mseleku together with the Chief Financial Officer of the Department, Mr G Muller presented the 2004/05 Annual Report and financial statement for the National Department of Health. The main focus of the presentation was on legislative mandates, administration, strategic health, health services delivery programmes and challenges 1. Legislative mandates The legislative mandates for the departments are the Constitution of the Republic of South Africa, National Health and Care Acts, Public Finance Management Act and Medicines and Related Substances Act as well as the Medical Schemes Act. Mr Mseleku briefly gave an overview of the priorities of the Department from 2004 to 2009. Amongst the priorities of the Department the following were identified:- • Improving governance and management of the National Health Services; • Improving of management of communicable and non-communicable disease through strengthening of primary health care, emergency services and hospital delivery system; and • Contribute towards human dignity by improving quality of care and promotion of healthy lifestyle 2.1.2 Programme Administration The programme presented by the Director General, provides improved integrated planning with provinces and districts as well as packages of care for primary health care, district hospitals and tertiary care. The administrative side of the Department also focussed on the review of annual reports of the provinces. 2.1.3 Programme 2: Strategic Health ProgrammesThis programme focussed on how provinces should work with the National Department in terms of integrating all activities within health care like telemedicine facilities, offering of VCT and PMTCT to patients. In their strategic programme the Department has managed to monitor 74 NGO’s, that have been funded, issuing of licences to pharmacist, TB related issues have also been intensified.
2.1.4 Programme 3: Health Service Delivery
This programme covers guidelines to improve management for hospitals, which has been improved by 60%. Through its service delivery processes the Department had managed to improve employer relations with the National Department of Health and 55% of grievances have been solved internally.
The Department also touched on improving hospital revitalisation programmes
2.1.5 ChallengesThe challenges faced by the Department were:
• TB control and campaign intensifications; • improvement of services in public hospitals; • retaining of and recruitment of health professionals; and • improvement of emergency medical services. The Committee deliberated on the Report and raised the following concerns: • limited operations for 2004/05 in regard to South African Aids Trust; • concern about appointment of 5 trustees instead of 7 on South African Aids Trust; • failure by the Department to take the resolution taken by SCOPAs report on management; • issue of the slow pace of hospital revitalisation especially in KwaZulu-Natal; • non-availability of business plans from 2 provinces for HIV and AIDS; • late submission of reports and incomplete information on reports; and • lack of reconciliation and monitoring between the National Department and KwaZulu-Natal on expenditure. The Committee then RESOLVED to ACCEPT the Report by the national Department of Health 2.2 Report by Council for Medical Schemes 2.2.1 Background Information on Council for Medical Schemes The Council for Medical Schemes is a statutory body established by the Medical schemes Act to provide regulatory supervision of private health financing through medical schemes. The governance of the Council is vested in a board appointed by the Minister of Health, consisting of a Non-executive Chairman, Deputy Chairman and 13 members. The Executive Head of the Council is the Registrar, also appointed by the Minister in terms of the Medical Schemes Act. The Council determines overall policy, but day-to-day decisions and management of staff are the responsibility of the Registrar and the Executive Managers. 2.2.2 Overview of presentation on Council for medical Schemes The main focus of the presentation by the Council for Medical Schemes was • Functional activities of the Council • Annual Financial Statements • Challenges 2.2.3 Functional activities of the Council Activities that were indicated in a report by the Council for Medical Schemes were the monitoring of solvency and financial soundness of medical schemes, control and co-ordinating the functioning of medical schemes in a manner that is complementary with the national health policy, investigating complaints and settling disputes in relation to the affairs of medical schemes. The Council also collects and disseminates information about private health care in South Africa, make rules (that are in line with the Medical Schemes Act) with regard to its own functions and powers, and makes recommendations to the Minister of Health on criteria for the measurement of quality and outcomes of the relevant health services provided for by medical schemes. The Council was also involved in a project that focussed on investigating causes of governance failure and possible solutions in a number of schemes that included Prosano, Protector Health and Commed. In regard to valid complaints against medical schemes the Council had received 1848 complaints and was able to solve 91% of these complaints as well as 20 appeals against decisions of disputes. 2.2.4 Annual Financial Statements The Council indicated that the operating budget expenditure for the Council for 2004/05 was R34, 889.976 billion from a budget of R35, 751 848 billion and this was covered by an income of R29 644,910 plus a surplus of R6 million. In terms of audit reporting the Auditor General stated that the Council’s financial statements comply with requirements of Generally Accepted Accounting Practice (GAAP) and other applicable laws. 2.2.5 Challenges Apart from the work that the Council was doing there were challenges that the Council was faced with: a) to ensure that more people could afford to join medical schemes; b) the issue concerning the high cost of private hospital services remains a challenge to the Council; and c) the continuance of pursuing fair treatment of members by the medical schemes The Committee deliberated on the Report and raised the following concerns: • the decline of General Practitioners in terms of total benefits paid; • the issue of broker fees which seemed to have increased by 206,4% was raised by the members; • 600 unpaid accounts which rose by 35,71%; • the increase of months for claims from 4.2 to 5.7 months; and • complaints from the clients that have not been resolved. The Committee then RESOLVED to ACCEPT the Report by the Council for Medical Schemes 2.3 Medical Research Council 2.3.1 Overview of presentation on Medical Research Council The Medical Research Council is a statutory Council established under Act 589 of 1991. The objectives of the Medical Research Council are to promote the improvement of the health and quality of life of the population of South Africa through research, development and technology. The Medical Research Council performs its functions as may be assigned to by and under the Act. The Council interacts with the National Department of Health, Department of Science and Technology together with 9 Health Science Councils and Non-Governmental Organisation as well as the Portfolio Committee on Health 2.3.2 Functional activities of the Council The Medical Research Council is engaged in research translation through policy, practice, promotion and product. The National Department of Health is the principal channel, through which the MRC research can improve the health of the nation as the National Department of Health develops national health policies to be tabled in Parliament, in conjunction with the 9 provinces. The Medical Research Council is also involved in research through practice by interacting with other stakeholders such as health care professionals, social workers and other professionals. The research that is done by the Medical Research Council through health promotion creates a healthy environment for South Africans because health choices that people can make protect their health and well being. The Medical Research Council is involved in identifying the determinants underlying the behaviours that lead to disease determinants such as poverty, lack of education or gender power imbalances. The Medical Research Council was also involved, through its functional activities in developing products such as patents for new drugs and vaccines, medical devices and disclosure of new biomedical or public health processes such as training programmes for lay health workers.Other functional activities that the Medical research Council embarked on are:
• Research strategy and business plan • New opportunities for research • Capacity building (training off scientists particular black scientists) • Developing of new drugs within 3 years2.3.3 Annual Financial Statements
The Council indicated that the operating budget expenditure for the Council for 2004/05 was R350 million. R180 million was a budget from Medical Research Council and R170 million was an amount from external income. The amount is reliably sustainable year after year.
2.3.4 Challenges
Challenges that are faced by the Council are:
• R403 million which would be needed for the next three years. This amount would be needed in terms of facilitating more research projects for the Council; and • Telemedicine facilities –That the Council was experiencing challenge in terms of not having a policy governing telemedicine.The Committee deliberated on the Report and raised the following concerns:
• the budget of R180 million was not enough taking into account the amount of work that was being done by the Council; • lack of skills in operational research capacity both in South Africa and the South African Development Countries; • preparedness of Council in terms of dealing with the avian flu; and • non-compliance with laws, rules and regulations in that the Council has failed to institute a fraud prevention plan as required by Treasury Regulation 27.2.1. The Committee then RESOLVED to ACCEPT the Report by the Medical Research Council. -
The Portfolio Committee on Public Service and Administration Provincial Oversight Visit Report to: KwaZulu-Natal, Limpopo, Eastern Cape and North West, 31 July to 12 August 2005, dated 16 November 2005:
The Portfolio Committee on Public Service and Administration undertook a provincial oversight to KwaZulu-Natal, Limpopo, Eastern Cape and North West. The visit emanated from the Special Report No. 19 of the Public Protector 2002 to establish facts as to the validity of the claims that delays in communication, lack of co-ordination or the breakdown thereof, impacts negatively on service delivery.
Group A
1- 12 August 2005
KZN - Eastern Cape
PJ Gomomo - Delegation Leader - Chairperson Mr. NE Gcwabaza(ANC) Ms. HC Mgabadeli(ANC) Mr. RS Ntuli(DA) Dr. U Roopnarian(IFP) Mr. R Sikakane(ANC) Ms. Sheilla N. Mninzi(Stand-In Committee Secretary) Mr. Victor Ngaleka(Parliamentary Reseracher) Commissioners from the Public Service Commission: Commissioner Mxakato-Diseko(PSC) Commissioner M Msoki(PSC) Commissioner PM Tengeni(PSC) Ms. Shamiela Abrahams(Ministry DPSA)
Group B
1-12 August 2005 North West – Limpopo
R Baloyi – Delegation Leader Mr. B Mthembu (ANC) Mrs. L Maloney (ANC) Mr. WW Skhosana (ANC) Mrs. Mashangoane (ANC)
Commissioner K Mokgalong (PSC) Commissioner RR Mgijima (PSC) Commissioner JDS Mahlangu (PSC) Commissioner KE Mahoai (PSC) Mr. Lewis Rabkin – Ministry DPSA
CONTENTS
Chairperson’s Remarks 2
-
Introduction 3
-
Purpose/Significance of the Oversight Visit 3
-
The Construction of Classrooms/Schools 5
-
Unannounced School Visits 8
-
Water Service Provision 10
-
Housing Delivery Services 13
-
Social Security Provision 15
-
Unannounced Hospital Visits 16
-
The Way Forward 17
-
Recommendations 17
10.1. The building of schools, classrooms and clinics 17 10.2. Delivery of Water Services 18 10.3. Delivery of social security services 19 10.4. Housing Services 20 10.5. Compliance with Batho Pele and Managing Discipline 20
-
Conclusion: Towards Effective Oversight 21
-
Action Plan 22
-
Note of Appreciation 22
-
CHAIRPERSON’S REMARKS
The Portfolio Committee on Public Service and Administration embarked on Provincial visits to the Eastern Cape, KwaZulu-Natal, Limpopo and North- West, from 31 July to 12 August 2005. Upon this undertaking, the Committee managed their programme in terms of detailed communication and organisation.
- SCOPE AND METHODOLOGY OF THE OVERSIGHT VISITS
This fact-finding mission of the Portfolio Committee on Public Service and Administration was influenced and guided by the Public Protector Special Report number 19 of 2002 which revealed that delays in communications in the Public Service have a negative impact in service delivery. The directives of other reports were also considered as guiding the scope of the oversight visits, such as the following reports of the Public Service Commission. These are the:
( Report on Remunerative work outside the Public Service, ( The State of the Public Service Reports of 2003 and 2004.
The Committee decided to get more information on the mission by way of interaction and interviewing officials and the Executive authorities of the National, Provincial and Local Government Departments or institutions, parastatals, other service delivery agencies and individuals, particularly those that are linked to one or another in the delivery of services in the following areas:
( The construction of classrooms/schools ( The supply of water ( The delivery of houses ( The delivery of social security services; and □ The Management of discipline and compliance with Batho Pele standards.
- ACKNOWLEDGEMENT
The Portfolio Committee appreciates the special support function rendered by the various Departments, the Public Service Commission and the Minister’s Office of the Department of Public Service and Administration, for the role they played in the planning of and during the oversight visits.
Chairperson: ——————————————————- P J Gomomo Date: ————————————————————–
PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION
REPORT ON PROVINCIAL OVERSIGHT VISITS
The Portfolio Committee on Public Service and Administration, having undertaken fact-finding visits to provinces, reports as follows:
- INTRODUCTION
1.1 The Portfolio Committee on Public Service and Administration embarked on provincial oversight visits to the provinces of the Eastern Cape, KwaZulu-Natal, Limpopo and North-West, from the 31 July to 12 August 2005.
1.2 The decision on which the Portfolio Committee initiated this fact- finding mission was guided by the Public Protector Special Report number 19 of 2002, which revealed that delays in communication in the Public Service impacted negatively on service delivery.
1.3 In finding practical ways of pursuing and responding to the recommendations made in the Public Protector’s Special Report, the Portfolio Committee interacted with national, provincial and local government departments and institutions, parastatals and other agencies in the delivery of services. The oversight visits of the Portfolio Committee was concerned with and focused on five service delivery areas namely:
The construction of classrooms/schools
The supply of water
The delivery of houses
The delivery of social security service, and
The management of discipline and compliance with Batho Pele
principles.
- PURPOSE/SIGNIFICANCE OF THE OVERSIGHT VISIT
2.1 The purpose of the study was to investigate and gain an understanding of progress that was being made to improve service delivery by the public service. In particular, the Committee wanted to assess the impact of communication in service delivery and establish facts as to the validity of the claim that delays in communication, lack of co- ordination or the breakdown thereof, impacts negatively on service delivery.
2.2 The Committee was divided into two multi-party groups, Group A and Group B, with each group covering two provinces simultaneously over the period of two weeks. Group A concentrated on KwaZulu-Natal and Eastern Cape while Group B focussed on Limpopo and North-West. However, the Committee emphasised that the visits were a fact-finding and not a fault-finding mission.
2.3 Having considered the Public Protector Special Report No. 19 of 2002, the Portfolio Committee on Public Service and Administration decided to embark on oversight visits to selected Provinces with a view to establish facts about a finding that delays in Communication, or a breakdown thereof, impact negatively on service delivery. The Committee thus voted that it would be necessary to select areas of focus where it could be established that there is a Communication link either internally in a particular Department, between Departments, between the Public and Government Departments.
2.4 In the delivery of housing, for example, the Department, does not necessarily rely on the activities of other Departments, but there has to be very active Communication between the Department and various Developers, Contractors and suppliers of materials. In cases where there is no such communication, the housing projects are often at serious risk of not being completed, and when that happens, it is the governments’ targets that get compromised.
2.5 It is a known fact that there is an inter-sphere communication link in the delivery of water services between the Local (Category B) Municipalities, the District (Category C) Municipalities, and the Department of Water Affairs and Forestry, such that where a gap exist, the delivery of the services may be further compromised.
2.6 For the effective roll-out of the Social Security Services, the Department of Home Affairs plays a complimentary role to that of Social Development, and so is the Department of Health in dealing with the processing of applications for disability grants.
2.7 Whereas the Government has predetermined a time-period for the acquisitioning of documents as identity documents and the waiting time between applications for registration as beneficiaries of various categories of Social Grants, we may not say for certain that all is well. Where such anomalies occur, the impact is that the rendering of such services are affected negatively. The prevalence of this tendency may be due to a Communication gap between the applicants and the Departments concerned.
2.8 In the construction of classrooms, we see a communication link betw een the Department of Education and that of Public Works. The Committee’s decision to focus on these issues is due to the fact that anyone of the two Departments, may fail to reach their target, simply because the other one of them is not exerting enough effort to get things done according to the laid down communication.
-
The Public Protector’s report also made a finding that there are problems related to the general compliance with Batho Pele and that the Management of discipline in the Public Service is a point that needs attention. Accordingly, the Portfolio Committee will visit some hospitals and schools.
-
THE CONSTRUCTION OF CLASSROOMS/SCHOOLS
3.1 The Department of Education in the Eastern Cape is servicing about 6 642 schools, with 2,1 million learners. It has a backlog of about 21 248 classrooms; a significant number is in the Transkei region. About 1 487 schools have no toilets, 1 972 schools have no water supply, 4 333 schools have electricity and 90% of the schools do not have laboratories or libraries.
3.2 The Department has incurred a deficit of R600 million. The huge deficit impacts negatively on the functionality of schools. The Department does not have funds to employ the necessary administrative workforce as backup support to schools and as a result a 60% vacancy gap exists within the department.
3.3 The Department was resistant to the Interim Management Team IMT due to undue influence and strained labour relations with the South African Democratic Teachers Union (SADTU) and the National Education and Health Workers Union (NEHAWU). It saw the influence as interference in the work of the Department. The issue of undue influence by trade unions in the administration of the Department is an issue that needs urgent resolution at a political level.
3.4 The performance of the Department of Education in KwaZulu-Natal has significantly improved over the last five years as demonstrated by the results of senior certificate candidates, which increased from 49% since 1999 to 73% pass rate in last year’ s results.
3.5 While the Department of Education in the Eastern Cape is faced with strained relations with labour, the Department in KZN enjoys good and normalised relations with organised labour to the extent that there is greater willingness on the part of the both parties to cooperate in resolving differences and in the provision of services.
3.6 The Departments of Public Works in Limpopo indicated that the function of construction of classrooms is carried out on request by the Department of Education. In other words the Department should indicate to Public Works where schools should be built and how many classrooms should be built. In spite of such problems, the Department of Education in Limpopo managed to reduce the backlog to 11 000 classrooms.
3.7 In some cases in the province of Limpopo, it was found that the learner-ratio was reasonable enough for a particular school but due to failures in the school management plans, timetables and others, learners where then found studying under trees.
3.8 The Limpopo and North-West departments of Education were worried about over-crowding in schools.
They reported that this is mainly due to the mobility of communities
from rural areas to migrate to and settle in urban areas. Related to
this, was the case of farmers turning their farms into game farms.
Affected farm workers consequently move to urban areas and settle into
Reconstruction and Development (RDP) houses. In itself this is a
problem as it indicates cases where these RDP houses are being sold
for profit. The mobility of people to urban areas leaves farm schools
standing empty while in the urbanised areas this inevitably leads to
over-crowding of classrooms in schools. In the North-West, for
instance, farm owners refuse to sign contracts because they want
exorbitant rental from the departments. The other problem is that of
ablution facilities at schools with toilets often collapsing or
getting filled too quickly.
3.9 The North-West Education department explained that, amongst others, there is no redress for infrastructure i.e. there is not enough money available (e.g. backlogs of about R6.8 billion). The province intends to build more schools, one per region; however, mobile classrooms with toilets are currently being used to ease the problem of overcrowding at some schools. These mobile classrooms will be moved to other needy areas as soon as classrooms have been built.
3.10 All the departments of Public Works in the provinces visited complained of shortages of appropriate skills in many areas such as land and quantity surveying, engineers, etc. Another area of concern was on lack of clarity on who is having the legal responsibility to maintain schools. In this regard, it surfaced that lack of co- ordination between the Department of Public Works, Department of Education and Municipalities was emerging with regards to the erecting of schools and servicing of water and electricity.
3.11 The other general challenge facing the visited provinces was in the area of libraries, laboratories and ways of addressing the shortage in furniture.
3.12 While the depth and intricacy of challenges differ by province, major challenges are in the areas of:
( Temporary Teachers - The question of temporary teachers keeps on haunting the Departments. The question is whether there is a possibility to overcome this problem at some stage. Of course, it is just normal to expect that whenever vacancies occur, such should be used to accommodate the temporary teachers, but the departments argue that this is not always the case, because the School Governing Bodies may prefer to appoint a totally new applicant than absorb a temporary teacher and others like the Eastern Cape reached agreements with organised labour in that educators in excess must first be absorbed before the temporary ones can be absorbed.
3.13 The utilisation of inherited ”school inspectors”. This category of employees are posing a serious threat to performance, either due to allegiance to the old order and resistance to change, or they have just reached a stage where they cannot learn or adjust to new strategies. The departments called on the Portfolio Committee to assist in the development of an audit plan. 3.14 While both the Departments of Public Works and Education in the four provinces visited are signatories to a service delivery agreement in the area of classroom construction, there are nonetheless reports of strained relations with each other and relations vary from fairly good to very bad. On the one hand the Department of Education blames the Public Works department for taking too long to put up infrastructure and for allowing already existing infrastructure to degenerate, while on the other hand the Department of Public Works complains that it experiences problems with Education with late submission of request and lists of school requirements, thus not allowing it enough time to adhere to its forward planning approach.
It surfaced that the Departments of Public Works and Education have a
generally volatile relationship that regrettably often leads to
adverse points of contention in the critical area of classroom
construction.
3.15 However, the overwhelming majority of provincial departments concerned are currently putting up interventionist measures to resolve the disagreements. The Committee views this common issue as an indication of the wider challenges that exist between the two provincial departments and that corrective measures need to be in place to find practical ways of dealing with these disputes in order to minimise and eradicate factors that act as obstacles in the delivery of service and particularly in the construction of schools. This situation is coupled by poor integrated planning between departments, parastatals and the private sectors.
3.16 In relation to Black Economic Empowerment (BEE), all the four provincial departments of Public Works visited complained that the BEE imperatives have to be consulted when awarding tenders and warrant them to support emerging contractors. They indicated that in considering BEE the departments have experienced problems with BEE contractors being slow to deliver as a result of various factors such as finances. Some BEE contractors often leave projects incomplete because of lack of financial management skills.
3.17 When the Department of Public Works in North-West was asked what plans they have to attract experienced and renowned contractors. The department responded that if a contractor shortens the construction period but still produces quality buildings, this will be added into a database for profiling and such contractors would stand a good chance in future tendering.
3.18 Concerning learners who travel long distances on foot to school, the MEC in North-West indicated that the provincial department of Transport and Roads has requested Education to indicate the number of learners involved in this category and what mode of transport it required but it took senior management +- 18 months to provide this. The matter is, nonetheless being pursued further.
The Committee wishes to note the positive reception from the
department of education in KZN. The Committee was further overwhelmed
by progress in the province regarding compliance with laws and
policies like poverty alleviation, strategic plans, performance
management and others. What emerged, was a sense of urgency and
commitment. However, skills issues need to be improved and the need
for appropriate learners support material is an issue for concern.
- UNANNOUNCED SCHOOL VISITS
4.1 The purpose of the visits was to look at issues of management of discipline and support services to the schools, which emanates from the report of the Public Protector. The Committee visited Wongalethu High in Mdantsane, in the Eastern Cape, Sejankabo High in North-West and Gija-Ngove High School in Limpopo.
4.2 The Committee discovered that Wongalethu High School in Mdantsane has been consistently under-performing with a 13% senior certificate pass rate last year. Moreover, in the past two years, the school operated without a school Principal and a new Principal started at the beginning of this year replacing the caretaker acting Principal.
4.3 Lack of discipline was a prominent feature in the schools visited and this was demonstrated by late coming from both learners and educators. At no time for instance has Sejankabo High in North-West enjoyed 100% attendance or presence of educators and learners in the year.
4.4 While Gija-Ngove High school in Limpopo has been obtaining 100% senior certificate passing rate for the past few years, lack of parental guidance or involvement was seen as the major contributing factor to problems of discipline, as parents are mainly migrant labourers. This led to schoolgirls falling pregnant and increasing the volume and degree of teenage pregnancy and child support grants for the province. This is further coupled by learners using drugs and drinking alcohol even during school hours.
-
Gija-Ngove High in Limpopo has 1094 enrolment with 40% of learners not paying schools fees resulting the school being turned into and given section 20 status and has about 25% late coming rate. The school is currently sitting with a debt of about R11 000 for installation and servicing for machines. The school has a fairly good relationship with the SGB and communication with circuit is very good and effective. However, all parents want to be exempted from paying school fees whether they qualify to be indigent or not. The school is coincidentally located near shebeens and drug-infested area.
The school is also faced with problems of facilities, where a class of 60 learners is equipped with only 20 chairs.
4.6 Wongalethu High in the Eastern Cape was also characterised by a lack of co-operation between the Principal and the rest of the school management team. This was clearly demonstrated by the failure of the deputy Principal as one of the managers in the school management team to submit quality test assurance or assessments of the pupils on the last quarter, resulting in prejudice to the learners final year marks.
4.7 The Committee was further alarmed by information that the schools visited are not the only ones encountering such problems as mentioned above in 4.6 and in fact about 18 of other schools might possibly be experiencing such problems. The Committee feels strongly about pursuing this issue.
4.8 The Committee was surprised to learn of section 21 schools as the establishment of such provisions where never explained to it and forwarded to its attention by relevant departments. The Committee wants to determine whether the issue of section 21 schools points to gaps in legislation. 4.9. The other problem that troubled a significant number of schools visited relates to the agreement with the teachers union where the educators in excess must first be absorbed before the temporary ones can be absorbed. Hence in Limpopo some of the best teachers at the schools are temporary teachers and the affected schools may lose them at the end of the year.
4.10 Sejankabo High School is faced with a decline in the enrolment of learners. There is also a high rate of vandalism of the school. The passing rate has declined from 85% in 1996 to 29.8% in 2003; absenteeism remains a problem and proper school uniforms are not being worn by learners.
4.11 When asked about the school success rate despite the challenges, the Gija-Ngove teachers explained that good relationships between the staff and he School governing body (SGB), a no-nonsense approach by the school management team, no tolerance to absconding from study and attendance have been the key factors behind the school’s success. Educators are made to feel ownership of the school by allowing them to make suggestions on the running of the school.
4.12 When asked about learners who perform below expectations, the school responded that parental consultations take place regularly in order to deal with learners who are under-performing. Learners are urged to be at school even during examination times while not writing any paper and that peers and prefects monitor other learners.
4.13 When asked whether Learner Support Materials (LSMs) are received on time, the school explained that the problem with LSMs is that they are not allocated to specific learners. Therefore, LSMs are always insufficient when compared with the demand. In most cases there is either under-supply or over supply of books.
4.14 The Portfolio Committee feels that the failure of the Deputy- Principal to submit the quality test assurance needs to be taken up with the Department of Education. It views this as an example of gross misconduct on the part of the educator.
4.15 The Committee appreciates the teacher-learner relationship in the province, however, notes that teacher deployment in the Eastern Cape province in not complemented with other packages.
4.16 The lack of discipline on the part of educators and learners is a matter that needs urgent measures to reverse the decline in the case of Wonga-Lethu and the other 18 schools mentioned in 4.6 and 4.7.
4.17 It was noted with concern that generally across provinces learners are taught in the vernacular languages whilst they would be examined in English. The issue of the educators’ proficiency in English needs to be addressed.
- WATER SERVICE PROVISION
5.1 The Portfolio Committee interacted with the representative of DWAF, and District and Local Municipalities, which are government structures concerned with the provision of water services.
5.2 Amatole District Municipality in the Eastern Cape is a coastal district municipality situated in the eastern mid-section of the Eastern Cape Province with a population size of approximately 1.6 million and estimated land extent of 23 675 square kilometers. There are eight local “B” municipalities (Mbashe, Mnquna, Great Kei, Buffalo City, Amahlathi, Ngqushwa, Nkonkobe, and Nxuba) to which Amatole is the water service provider. Located within its boundary is the Buffalo City, which is a secondary city, providing its own water to citizens.
5.3 Prior to 2003, the Department of Water Affairs and forestry (DWAF) was the sole provider of water services. Since the introduction of the new system of local government, local municipalities have assumed responsibility for the provision of water, whilst the department remains the regulator. The process of changing the function of municipalities to service providers depends on resources and the competence and capacities of staff. It is recognised that some of the municipalities lack capacity but the district municipality has plans to augment the funding and capacity where there are shortages.
5.4 The Amatole District Municipality as the regulator has developed policies and by-laws, which have been gazetted. However, the challenge faced by the municipality is to enforce these by-laws.
5.5 The municipality is committed to the national targets as set out in the government’s Plan of Action to ensure that communities have access to clean running water by 2010. It faces huge challenges in the Transkei to provide and develop sources of water.
5.6 Institutional relationships with local municipalities in terms of section 83 of the Structures Act to provide support to local municipalities appears to be inadequate as it puts the sole emphasis on political responsibility. There is hope that the Intergovernmental Relations Framework Act (IGRFA) will positive outcomes in this regard.
5.7 The Committee believes that in the delivery of water related services, strong communication and co-ordination links between local municipalities, district municipalities and DWAF must be maintained and where they do not exist needed to be initiated. 5.8 The Mopani District Municipality reported that in the period 1996 to 2001 it experienced increased figures for non-access for water-related services due to population increases and migration trends.
5.9 The district municipality further reported that the policy of prioritising water provision has resulted in budgetary decreases in other areas of services.
5.10 Again regarding the devolution of water services to local municipalities: the part to Mopani District Municipality was not ready to deliver services to the people due in capacity constraints.
5.11 It was also reported that DWAF is not responsive to the needs of municipalities despite existing service level agreements. DWAF appears to be refusing to refurbish the schemes before transferring them to the municipality. Moreover, DWAF transferred the scheme to BaPhalaborwa without transferring cost recovery infrastructure and as a result BaPhalaborwa owes the Water Board R90 million.
5.12 The Greater Giyani and Greater Letaba Municipalities have been identified to be part of Project Consolidate and hopes to benefit greatly from the project.
5.13 The overwhelming majority of government structures concerned with water provision indicated that the economic status of the users impact on their ability to recover costs. 80% of the workforce of BaPhalaborwa municipality has been retrenched from the mines. However, where supply of water is consistent, payment is normally not a problem.
5.14 The Committee discovered the following:
( There are fears that the transfer of staff from the Department of Water Affairs and Forestry (DWAF) municipalities may result in overstaffing at local level. ( The capacity of DWAF schemes are designed to service the reconstruction and Development Plan (RDP) housing schemes in areas and not other informal settlements. ( Some villages are receiving water for only 4 hours per day. Others have no electricity and water supply due to various problems. ( There are delays due to municipalities having to redesign the scheme. There is poor communication between DWAF and the District Municipalities that result in the under-spending of funds earmarked for water supply. ( DWAF transferred funds (allocated mostly to capital projects) to District Municipalities as Water Services Authorities for 2003/2004 financial year. These funds were not spent. ( Funds collected by the local municipalities do not always end up being reimbursed to DWAF for operating the scheme. ( There is a Service Level Agreement (SLA) between the District and DWAF but it is difficult to enforce. ( There is a capacity problem within the municipalities to carry out cost recovery of services delivered. ( Sometimes Municipalities appoint contractors who are not qualified to do the job without any documentation. This leaves DWAF with no option than remaining silent on problems with construction. ( There are different service delivery standards between different government departments. There are, for example, no unified standards detectable between sanitation facilities built by the Department of Public Works and those provided by DWAF. ( Communication and co-ordination: Provincial departments are not communicating and not co-ordinating when they proceed with the transfer of functions. ( There is an Energy Forum but it has problems because ESKOM changes electricity units without consulting the Energy Forum. Free Basic Electricity is therefore also a challenge to act on and deliver to those who needs it most. ( Allocations of free basic water and electricity, based on the number of indigent people in areas are problematic in instances where the area is constituted of people with mixed income levels. ( The Environmental Impact Assessment made by the Department of Environmental Affairs delays project implementation. ( Technical reports have to be approved by DWAF and they further delay project implementation.
- HOUSING DELIVERY SERVICES
6.1 The Portfolio Committee in the Eastern Cape met with the provincial Department of Housing. The strategic objective of the Department is to support the capacity of local government in its plans of building affordable houses that meet the special needs of the most vulnerable in our society through an integrated infrastructure development.
6.2 The plan of the Department is to address the backlog focusing on both rural and urban areas. The two urban areas identified are Soweto on Sea in the Nelson Mandela Metropolitan Municipality and Duncan Village in Buffalo City Municipality. The Department of Housing in the Eastern Cape faces the challenge of meeting the Millennium Goals of clearing slums by 2014 and offering sustainable human settlement to all our people. There are problematic areas regarding a working relationship with traditional leadership in the province but these are less are less pronounced than in KwaZulu Natal (KZN).
6.3 The Department of Housing in KZN claimed that it was unaware of the visit by the Portfolio Committee and was, therefore, not in a position to meet it. After persuasion, the Head of the Department, reluctantly, agreed to meet and arranged discussions with the Portfolio Committee on challenges facing housing delivery in the province.
6.4 The Committee notes with regret that the department in KZN was not prepared to receive the Committee. The Committee, however, is of the view that such occurrences appear to point to key flaws within the communication structures in the department.
6.5 One of the major challenges facing housing delivery in the KZN arises from the strained relations between the traditional leadership and elected leadership. This relationship needs the intervention of politicians on a continuous basis to clarify the distinct roles and functions of the traditional and elected leaders.
6.6 In Limpopo, service delivery standards have been developed. There are policies for service delivery, but there are challenges with the implementation thereof.
6.7 The absence of a centralised call centre in KZN was noted with concern. For the period 1994-1999 the housing development process was performed by the Department, which played a role as one of the structures in the delivery chain, but with effect from 1999, the Department is playing the role of a developer. Municipalities draw priority lists and identify beneficiaries for housing projects that are forwarded to the provincial housing department. Acts of corruption have been identified.
- In dealing with Municipal Infrastructure Grant Projects (MIG) the department in Limpopo noted a serious delay in developing plans by municipalities. Defaulters in the management of projects are dealt with according to the nature of the default, e.g. blacklisting for non- payment.
6.9 The Matlhoks project was mentioned as a typical case of projects that are affected by communication and co-ordination problems. It was noted at the meeting that there is a need for this project to be followed up.
6.10 The department of housing in the North-West province indicated that for the 2003/2004 financial years it under-spent to an amount of R142 Million and are currently sitting with +-R610 Million for housing. It was further pointed out that in an effort to address the deficiencies, a program has been put in place to visit all 21 municipalities to empower them as developers so that the funds can be used.
6.11 When asked as to why the department has a housing backlog whilst it claims to be sitting with R610 million, the Chief Director responded that the transfer of monthly funding by the National Department of Housing is not done within the allocated time period. This results in material being bought on credit and the department failing to pay on time with the results that suppliers are reluctant to deliver material. Construction workers who have not been paid also abandon projects.
6.12 When asked what is being done with municipalities that fail to deliver, the response was that such municipalities are required to return the responsibilities to the department.
6.13 Responding to what action the department utilise when the National Department fails to transfer monthly funding in time, the North West provincial department indicated that it is co-co-ordinating well with its national counterpart. This is evidenced by the local department being a member of all the task teams of the national department concerned with housing delivery. 6.14 The Portfolio Committee further wanted to know whether skills transfer programmes between the department and contractors are taking place. The department stated that this is being dealt with through tripartite agreements between the department, municipalities and contractors.
6.15 On the subject of the role of the Housing Corporation in housing delivery, the department revealed that the entity in question was inherited from the past regime and its role was mainly to provide rental housing e.g. flats but does not have a role in the new dispensation on housing delivery.
6.16 When the Committee enquired about the extent of progress regarding the eradication of bucket system along the Millennium aims. The department indicated that R1 Billion to R5 Billion is required for rural sanitation in order to eradicate the bucket system from our society. Funding is thus the main problem as some municipalities are not able to counter funds because they have very poor revenue bases.
6.17 Unfortunately, because the Provincial Housing Department’s Chief Directorate has just recently been staffed, the Portfolio Committee could not get a detailed account of what caused backlogs in the past years.
- SOCIAL SECURITY PROVISION 7.1 The Portfolio Committee met with the provincial Departments of Social Development and the Regional Offices of the Department of Home Affairs.
7.2 The Department of Social Development in the Eastern Cape has two components, the Social Grant and Development components. The Social Grant component is in the process of being transferred to the new Social Security Agency (SASSA). The target date for the new Social Security Agency is 6 April.
7.3 The objective of the Social Development component will be to provide protection to the most vulnerable and reducing dependence on social grants. It wants to ensure that areas of social protection are focused.
7.4 The department is to focus on income generation projects. It will also address issues of children in conflict with the law and the protection of the elderly.
7.5 Communication in the Department was found to be a problem area. The Social Services department in KZN has experienced an increase in litigation over the last few years. The litigations are in connection with non-approval of applications for social grants or their termination. Because of problems it encountered with the State Attorney, it opted to acquire and use the services of private practitioners. This is a case that the Portfolio Committee wants to raise with relevant structures and such as the Department of Justice and Constitutional Development.
7.6 The Department in KZN has opted for a single service provider to pay out social grants to beneficiaries for the whole of the province. This is also a matter the Portfolio Committee feels should be examined. In particular, the Portfolio Committee wants to investigate the issue of whether it is appropriate that the service of actual payments of social grants should be privatised.
7.7 The Portfolio Committee commended the Department on pay-points specifically with regards to the provision of shelters and chairs for the beneficiaries. It felt, however, that there should be a more effective regulation of traffic, hawkers and moneylenders in the vicinity of the pay-points. In view of the fact that the beneficiaries are elders, disabled people and children arrangements should be made with the local clinics and day hospitals for paramedics, nurses and, or a doctor to be on standby for cases of emergency.
7.8 In the Limpopo Province, the Portfolio Committee was able to meet both the department of Social Development as well as a social security pay-point in Ngove. The relevant recommendations regarding these are made in the sections detailing recommendations.
7.9 The Committee notes with regret that the department of Social Development in KZN has enormous backlogs of unprocessed applications and this issue needs to be followed up on.
- The Portfolio Committee noted the outsourcing of social services to private contractors performing the function on behalf of the department in KZN.
7.11 There appears to be slow progress in Msinga in the past 7 years because of infrastructure not properly exploited due to the unwillingness of traditional leaders. The Committee feels that traditional leaders in the province have to adapt to the social structure of the wider society. The traditional leaders in the province appear to be blocking progress.
- UNANNOUNCED HOSPITAL VISITS
8.1 The Portfolio Committee made unannounced visits to hospitals as part of observations to determine compliance with the Batho Pele Principles. Visits were conducted in the Giyani Health Centre, Cecelia Makiwane, and Grey’s Hospital, North Dale Hospital and Bophelong Hospital.
8.2 The Portfolio Committee made an unannounced visit to Cecelia Makiwane Hospital in the Eastern Cape. It spoke to the medical staff, from doctors to nurses and general workers. It also to patients in the maternity wards, it visited paediatric and the psychiatric wards.
8.3 The hospital showed clear signs of debilitation. However, it was kept clean. The Portfolio committee was very impressed by the commitment and passion by employees to the provision of quality service. The overwhelming majority of the hospitals visited raised common issues relating to staff retention, shortages and resources.
8.4 The North-Dale Hospital in KZN is a district hospital, which services communities from Umgungundlovu, Uthukela, Umzinyathi, Ilembe and Sisionke. Northdale is a referral hospital that receives patients from the Primary Health Clinics and Community Health Clinics.
8.5 The Hospitals visited in the province appear to be struggling on staff retention, which point to a need for improved conditions of work.
8.6 The Hospital just like the other rural municipalities visited would like to see the hospital re-categorised from a small district hospital to take into account the geographical area it covers, and additional funding that goes with re-categorisation.
- THE WAY FORWARD
There is need for:
( A national co-ordinating structure to deal with local issues of service delivery e.g. the housing delivery, and deal with problems in traditional leadership areas. ( Regarding the flight of skills from hospitals, led by the PSC and other appropriate state organs: A structure need to be established at the national level which, in terms of the Committee’s observation, emanates not only from conditions of employment but also from our policy framework. ( Provinces need to be provided with a copy of the report before the following up on issues to afford them the opportunity of studying the findings and recommendations of the Committee. ( A review of the issue of functions as they relate to the Department of Public Works, Education and local government structures (municipalities) in the area of classroom construction and maintenance thereof should take place. Initiate bilateral meetings with SADTU and others in the Eastern Cape around IMT-related issues.
10. RECOMMENDATIONS
In this section, recommendations are grouped under appropriate numbered headings. Please note that each specific recommendation is bulleted.
10.1. The building of schools, classrooms and clinics:
-
The Committee recommends the following: ( There is a need for the establishment of a Provincial Infrastructure Co-ordination Unit to co-ordinate plans of various institutions like Eskom for provision of electricity, Department of Water Affairs for provision of water, Department of Education for provision of schools, Public Works for construction of the said classrooms and Roads and Transport for provision of roads and transport routes. ( Maintenance of school buildings could be incorporated into the Expanded Public Works Programme. ( The volatile relationship between the Department of Education and Public Works might have to be addressed at national level in order to ensure improvements in service delivery. ( The provincial departments concerned must look at the possibilities of reconciling the socio-economic imperatives of BEE and the wider national democratic principles of a better life for all. ( The Committee wants to note that the issue of BEE as it unfolds, is a problem and that the standard of work tends to compromise the construction of schools. The Committee further wants to consider whether the departments should pursue or glance the issue of BEE at the expense of adequate classroom construction.
-
The provincial Department of Education in Limpopo and North West expressed a view that the function of schools being built can be expressed as their area of function. There is tension between the Department of Public Works and DoE regarding this. The view expressed is that DoE should be allowed to build schools while Public Works should take responsibility of its long term maintenance. Is there a need to review the role of Public Works? In this regard, the Portfolio Committee makes two recommendations:
( DPSA to investigate relevance of division of responsibilities between the two departments concerned. ( PSC in conjunction with CSIR to investigate a mechanism/capital project management tool that would assist DoE. This is also applicable to Housing.
- The issue of school buildings and clinics that need to be erected is a serious one: The question of Health and DoE’s apparent failure to plan ahead and communicate needs and requirements with Public Works lies at the core of the tension around the quality of buildings.
( The Portfolio Committee recommends that steps be taken to ensure that standards are set which would apply across the board. The Committee further recommends that the PSC investigate Education Development Trust Fund (EDTF) in North West and Limpopo. The key question that should drive this investigation is: Does the EDTF benefit education generally or certain individuals only? It is recommended that the PSC investigate the existence of EDTF in all provinces.
10.2. Delivery of Water Services:
In terms of the Water Services Act, the Department of Water Affairs and Forestry (DWAF) is the regulator and District and local municipalities are deliverers. These different roles are still being implemented. The truth of the matter is that there has been no transfer of staff from the national DWAF to municipalities. The quality of service delivery is being compromised by the slow progress in this regard. ( The Portfolio Committee of Public Service and Administration recommends that these transfers be expedited. DWAF should extend water plants instead of putting up more bore holes. ( The Portfolio Committee should meet the District and BaPhalaborwa on the water crisis as a matter of extreme urgency. ( A way of channelling funding from ESKOM to municipalities needs to be explored. ( Regarding problems of unemployment around BaPhalaborwa due to retrenchments: The municipality needs to be assisted to revive the local economy. ( DPSA should be approached to assist on a consultancy basis with the much-anticipated staff transfers to municipalities from DWAF. ( The Municipalities need to take stock of their readiness to handle the distribution of electricity to the indigent in all communities
( The inter-sectoral committee envisaged in Collaborative Committees envisaged in Collaborative Committees should be pursued as a vehicle to promote communication between different levels of government as well as between departments. ( There is a need to capacitate municipalities to be able to implement cost recovery of services delivered. ( The transfer of staff from DWAF to municipalities should be accompanied by a budget. ( The possibility of making the infrastructure transfer from DWAF to municipalities needs to be explored by an inter-departmental committee driven at Ministerial level as guided by the Inter governmental Relations Framework Act (IGRFA). ( DWAF is requested to furnish the Portfolio Committee with a list of municipalities that are unable to spend money that has been transferred to them.
The Portfolio Committee would also need to interact with the Department of Minerals and Energy around the issue of collaboration with the municipalities on the supply of electricity. This would also require an interaction with relevant stakeholders involved in the provision of electricity such as ESKOM, Energy Distribution Industry (EDI) and National Energy Regulator (NER).
10.3. Delivery of social security services:
The issue of security at disability, foster care and pension pay out points. Absence of toilet facilities, medical facility, shelter at these points. Issue of transport. ( Having noted these, the Portfolio Committee recommends that the inspectorate in different departments in regions do regular check up on vendors selling meat, medical items, etc.
( There is a serious need for the appropriate placing of pay-points where people have to collect their social and disability grants. Current pay points are often located in inaccessible places that makes access to funds difficult and often dangerous. ( The Portfolio Committee recommends that the Department of Social Development investigate this issue.
In the North West there are no hospital boards as they were suspended due to investigations. ( The Portfolio Committee recommends that they be re-established.
There is serious disagreement in the local community in Swart Ruggens regarding the building of a hospital as there is a move to close the local clinic in the rural area so that people would have to travel very far for medical services. A similar problem exists in the Eastern Cape where staff and patients are up in arms as an orthopaedic clinic was moved from a rural to urban area, making it almost impossible for patients to access medical services. The subsequent answers provided by the MEC, is proof of the fact that issues are really not well communicated to the people.
( The Portfolio Committee recommends that Provincial departments take note of this and address it. In addition, the Portfolio Committee requires a follow-up with the Department of Health nationally so that issues where people are not properly informed provincially and locally in provinces can be addressed. The problem of the huge shortage of medical doctors must in addition also be raised.
The instrument used to state which hospital have rural allowance (as an incentive for medical doctors to work there) or not needs to be clarified, as well as the grading of hospitals where these are often converted into clinics, health centres.
( The Portfolio Committee recommends a follow-up with the Department of Health nationally and would like to set up a joint committee meeting with the Portfolio Committee on Health in this regard.
The Portfolio Committee recommends the establishment a mechanism to deal with Foster Care Grants. The Portfolio Committee further recommends that the Department of Social Development needs to communicate to the Portfolio Committee on Public Service and Administration the status of Foster Care Grants.
Regarding the Limpopo Province, the Portfolio Committee made the following recommendations:
( There is a need to encourage beneficiaries (especially child support grants) to receive their monies from other alternative methods. ( The trading at the site of the pay point needs to be controlled and co-ordinated to ensure that high level of ethics are uphold and the vulnerability of the beneficiaries are not taken advantage of. ( The department needs to undertake awareness amongst beneficiaries to be aware of sharks, other unscrupulous traders. Environmental health offices need to monitor the activities at the pay points.
Inter-departmental collaboration need to take place at the social security pay-points to address and monitor various aspects that relates to social security of the indigent, such as visible policing, home affairs, trading, health, environment, etc.
10.4. Housing Services: The underspending of budgets for houses to be built in the North West: The province put down a good plan to deal with these delays. ( The Portfolio Committee requires regular feed back regarding the targets that Department set itself.
10.5. Compliance with Batho Pele and Managing Discipline
□ Provincial Departments of Education needs to report to the Portfolio Committee on their performances. Also Members of Parliament □ with Constituency Offices in these provinces is to visit schools regularly to oversee these developments. Wonga Lethu and others must be visited again as well. Problem with management pulling together.
This should be extended to the other 18 schools that failed to submit year marks. Schools in former Transkei must be visited to see what is going on in terms of Batho Pele and management. ( The Portfolio Committee is to set up communication between DoE management and the South African Democratic Teachers Union (SADTU) in the Eastern Cape (The Portfolio Committee on Education should be engaged regarding such a visit).
( The specific recommendation is to write to the Minister of Education and respective Members of Executive Councils responsible for Education in provinces about why those teachers guilty of not handing in year marks were not charged with misconduct. The Issue of teacher absenteeism on pay day with children being left alone on classrooms is a serious one that must be addressed urgently.
( The PSC to investigate the recruitment of principals.
A problem with communication between Department of Minerals and Energy, and Eskom has been noted as having negative influences on service delivery.
The Portfolio Committee recommends that this be communicated to the Department of Minerals and Energy.
- CONCLUSION: TOWARDS EFFECTIVE OVERSIGHT
11.1 The Portfolio Committee convened a workshop after the oversight visits to assess the issues that arose during the visits as part of the preparation of this report to Parliament. It held a one-day workshop on the 12th September 2005 in Parliament in which Public Service Commissioners who were part of the visits also participated. It was clear, after this assessment, that there is a need for follow- up visits to these provinces and institutions in order for us to accomplish the mission of the oversight visit. The Portfolio Committee needed to give an opportunity to key stakeholders to express their views on issues that arose during the oversight visit.
11.2 With a view to taking action, the Portfolio Committee was of the view that the institutions in the following action plan should be invited to a hearing on the delivery topics mentioned below, in order that they can express their views on the issues that arose during the oversight visit.
ACTION PLAN
| SUBJECT | IMPLEMENTING AGENCY | Comment |
| Classroom | DWAF | The National Departments of |
| Construction | DPLG | Water Affairs and Forestry and |
| Water Boards | the Department of Provincial | |
| Eskom | and Local Government should be | |
| EDI | given an opportunity to relate | |
| NER | to the issues raised during | |
| the provincial visits. The | ||
| Water Boards in some of the | ||
| provinces need to be | ||
| interacted with on the issues | ||
| relating to the provision of | ||
| water. The Portfolio Committee | ||
| would also need to interact | ||
| with the Department of | ||
| Minerals and Energy around the | ||
| issue of collaboration with | ||
| the | ||
| municipalities on the supply | ||
| of electricity. That would | ||
| also require an interaction | ||
| with the stakeholders in the | ||
| provision of electricity such | ||
| as Eskom, EDI and NER. | ||
| Social | Safety & Security | The Portfolio Committee would |
| Security | Home Affairs | need to interact with other |
| Health | Departments, which are key to | |
| the provision of social | ||
| security services, such the | ||
| Departments of Safety and | ||
| Security, Home Affairs and | ||
| Health. | ||
| Housing | Housing | There is a need to interact |
| Provision | DPLG | with the National Departments |
| Land Affairs and | of Housing, Land Affairs and | |
| Agriculture | Agriculture and Provincial and | |
| Local Government on issues | ||
| that relate to housing, roles | ||
| and functions of local | ||
| authorities, traditional | ||
| leadership and land. | ||
A NOTE OF APPRECIATION:
The Committee wishes to convey appreciation for the warm and positive reception that all the stakeholders afforded it during the time of the oversight visits in dealing with all areas concerning service delivery.
THURSDAY, 24 NOVEMBER 2005
TABLINGS
National Assembly and National Council of Provinces
-
The Minister of Transport
a) The South African National Roads Agency Limited Declaration of Intent for 2005-2008.
-
The Minister of Arts and Culture
a) Report and Financial Statements of the Robben Island Museum for 2004-2005, including the Report of the Auditor-General on the Financial Statements for 2004-2005 [RP 194-2005].
-
The Minister for Justice and Constitutional Development
a) Prosecutorial Policy and Directives relating to Prosecution of Criminal Matters Arising from Conflicts of the Past and which were committed before 11 May 1994, in terms of sections 21(2), 35(1) and 35(2)(b) of the National Prosecuting Authority Act, (Act No 32 of 1998).
b) Report on the provisional suspension from office with remuneration: Mr R Ameer, an additional magistrate at Pinetown Magistrates Court.
c) Report on the provisional suspension from office with remuneration: Mr M S Makamu, a senior magistrate at the Benoni Magistrates Court.
d) Report of the South African Law Reform Commission for 2004-2005.
-
The Minister of Water Affairs and Forestry
a) Government Notice No 1038 published in Government Gazette No 28143 dated 21 October 2005: Restrictions on the use of water for Agricultural, Domestic and Industrial purposes in the Luvuvhu/Letaba Water Management Area, in terms of the National Water Act, 1998 (Act No 36 of 1998). (b) Government Notice No 1057 published in Government Gazette No 28167 dated 28 October 2005: Invitation to submit written comments on the proposed construction of Phase-2 of the Olifants River Water Resource Development Project and Environmental Impact Assessment relating thereto, in terms of section 110 of the National Water Act, 1998 (Act No 36 of 1998).
TUESDAY, 29 NOVEMBER 2005
ANNOUNCEMENTS
National Assembly
- Referrals to committees of papers tabled
(1) The following papers are referred to the Portfolio Committee on
Justice and Constitutional Development for consideration and
report:
(a) Report on the provisional suspension from office with
remuneration: Mr R Ameer, an additional magistrate at Pinetown
Magistrates Court.
(b) Report on the provisional suspension from office with
remuneration: Mr M S Makamu, a senior magistrate at the Benoni
Magistrates Court.
(c) Prosecutorial Policy and Directives relating to
Prosecution of Criminal Matters Arising from Conflicts of the
Past and which were committed before 11 May 1994, in terms of
sections 21(2), 35(1) and 35(2)(b) of the National Prosecuting
Authority Act, (Act No 32 of 1998).
(2) The following paper is referred to the Portfolio Committee on
Communications and the Standing Committee on Public Accounts for
consideration:
(a) Letter from the Minister of Communications dated 2
November 2005 to the Speaker of the National Assembly, in
terms of section 65(2)(a) of the Public Finance Management
Act, 1999 (Act No 1 of 1999), explaining the delay in the
tabling of the Annual Report of Telkom for 2004-2005.
(3) The following paper is referred to the Portfolio Committee on
Labour and the Standing Committee on Public Accounts for
consideration:
(a) Letter from the Minister of Labour dated 1 November 2005
to the Speaker of the National Assembly, in terms of section
65(2)(a) of the Public Finance Management Act, 1999 (Act No 1
of 1999), explaining the delay in the tabling of the Annual
Report of the Information Systems, Electronics and
Telecommunications Technologies Training Authority (ISETT
SETA) for 2004-2005.
(4) The following paper is referred to the Portfolio Committee on
Home Affairs and the Standing Committee on Public Accounts for
consideration:
(a) Letter from the Minister of Home Affairs dated 4 October
2005 to the Speaker of the National Assembly, in terms of
section 65(2)(a) of the Public Finance Management Act, 1999
(Act No 1 of 1999), explaining the delay in the tabling of the
Annual Report of Home Affairs for 2004-2005.
(5) The following paper is referred to the Portfolio Committee on
Finance and the Portfolio Committee on Public Service and
Administration:
(a) Report of the Auditor-General on the Information Systems
Audits performed at the National Treasury and the State
Information Technology Agency for the financial year 2004-2005
[RP 209-2005].
(6) The following paper is referred to the Portfolio Committee on
Public Service and Administration for consideration:
(a) Report of the Auditor-General on a performance audit of
the Management of Sick Leave Benefits at certain National and
Provincial Departments [RP 215-2005].
(7) The following paper is referred to the Portfolio Committee on
Finance and the Standing Committee on Public Accounts for
consideration:
(a) Report of the Auditor-General on the financial statements
of the Special Pensions Board for the year ended 31 March 2005
[RP 217-2005].
(8) The following paper is referred to the Standing Committee on
Public Accounts for consideration:
(a) Special Report of the Auditor-General on the Status of the
Delays in tabling of Annual Reports and consolidated financial
statements of National Government for the financial year ended
2004-2005 (as at 31 October 2005) [RP 225-2005].
(9) The following paper is referred to the Portfolio Committee on
Education and the Portfolio Committee on Labour for consideration
and report. The Report of the Auditor-General on the Financial
Statements is referred to the Standing Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Education Labour
Relations Council for 2004-2005, including the Report of the
Auditor-General on the Financial Statements for 2004-2005 [RP
222-2005].
(10) The following paper is referred to the Portfolio Committee on
Labour and the Portfolio Committee on Water Affairs and Forestry
for consideration and report. The Report of the Auditor-General
on the Financial Statements is referred to the Standing
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Forest Industries
Sector Education and Training Authority (FIETA) for 2004-2005,
including the Report of the Auditor-General on the Financial
Statements for 2004-2005 [RP 90-2005].
(11) The following paper is referred to the Portfolio Committee on
Minerals and Energy and the Portfolio Committee on Labour for
consideration and report:
(a) Report and Financial Statements of the Mine Health and
Safety Inspectorate for 2004-2005 [RP 125-2005].
(12) The following paper is referred to the Ad Hoc Committee on the
Auditor-General for consideration and report:
(a) Budget and Strategic Plan of the Auditor-General for 2006-
07, tabled in terms of section 38(2) of the Public Audit Act,
2004 (Act No 25 of 2004).
(13) The following papers are referred to the Portfolio Committee on
Water Affairs and Forestry:
(a) Notice No 925 published in Government Gazette No 28058
dated 23 September 2005: Release of State land at De Mond,
Western Cape Province, which is no longer required for
forestry purposes, made in terms of section 50(4) of the
National Forests Act, 1998 (Act No 84 of 1998).
(b) Notice No 926 published in Government Gazette No 28060
dated 23 September 2005: Water Tribunals Rules made in terms
of section 148(5) of the National Water Act, 1998 (Act No 36
of 1998).
(c) Notice No 939 published in Government Gazette No 28053
dated 30 September 2005: Establishment of the Crocodile (West)-
Marico Catchment Management Agency (Water Management Area No
3) which covers the Northern part of the North-West Province,
North-Eastern part of Gauteng, the South-West portion of
Limpopo Province and a small portion of Western Mpumalanga and
is bordered by Botswana on its North-Western side, made in
terms of section 78(1) of the National Water Act, 1998 (Act No
36 of 1998).
(d) Notice No 945 published in Government Gazette No 28053
dated 30 September 2005: Proposal for the establishment of the
Gouritz Catchment Management Agency, made in terms of section
78(3) of the National Water Act, 1998 (Act No 36 of 1998).
(e) Notice No 944 published in Government Gazette No 28053
dated 30 September 2005: Proposal for the establishment of the
Olifants-Doorn Catchment Management Agency, made in terms of
section 78(3) of the National Water Act, 1998 (Act No 36 of
1998).
(f) Government Notice No 1038 published in Government Gazette
No 28143 dated 21 October 2005: Restrictions on the use of
water for Agricultural, Domestic and Industrial purposes in
the Luvuvhu/Letaba Water Management Area, in terms of the
National Water Act, 1998 (Act No 36 of 1998).
(14) The following paper is referred to the Portfolio Committee on
Finance and the Portfolio Committee on Public Service and
Administration for consideration and report. The Report of the
Independent Auditors on the Financial Statements is referred to
the Standing Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Government
Employees Pension Fund (GEPF) for 2004-2005, including the
Report of the Independent Auditors on the Financial Statements
for 2004-2005 [RP 45-2005].
(15) The following paper is referred to the Portfolio Committee on
Transport for consideration:
(a) The South African National Roads Agency Limited
Declaration of Intent for 2005-2008.
(16) The following paper is referred to the Portfolio Committee on
Arts and Culture for consideration and report. The Report of the
Auditor-General on the Financial Statements is referred to the
Standing Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Robben Island
Museum for 2004-2005, including the Report of the Auditor-
General on the Financial Statements for 2004-2005 [RP 194-
2005].
TABLINGS National Assembly and National Council of Provinces
- The Minister of Housing
(a) Report and Financial Statements of the National Home Builders
Registration Council for 2004-2005, including the Report of the
Auditor-General on the Financial Statements for 2004-2005 [RP 185-
2005].
COMMITTEE REPORTS
National Assembly
- Report of the Portfolio Committee on Finance on its Oversight hearing of Statistics South Africa (Statistics SA) Annual Report 2004/05, dated 8 November 2005:
The Portfolio Committee on Finance, having considered the annual report
of Statistics SA for 2004/05 and the related presentations by the
Statistician General and the senior management of the department reports
as follows:
-
Introduction
The Portfolio Committee on Finance held a hearing on 10 October 2005 at which the Statistician-General and a team of senior managers presented the Statistics SA annual report for 2004/05. This was followed by a discussion of issues arising from the documents and presentations during which members of the Committee raised a number of issues. The Committee was impressed by the format of the annual report, which was a significant improvement on the previous year and which achieved greater clarity in the presentation of substantive issues. The Committee however raised its grave concern with respect to the management of Statistics SA which substantive issues are raised in the report. 1.1 Strategic focus of annual report and linkage of performance to targets. Statistics SA presented an annual report that facilitated robust oversight as a result of compliance with National Treasury formatting and through clear linkages between the strategic themes raised in the strategic plan and performance. However the annual report could be further improved if it provided greater details in the Programme Performance section especially where targets set in the strategic plan are not achieved. 2. Issues related to the General and Financial Management of the Department The Committee expresses concern at the persistence of numerous problems related to the management of the department. In the Committees opinion these require urgent attention and should not be allowed to remain unresolved for a further year. 1. Weak management capacity During the engagement with the Committee, the Statistician General made frequent reference to lack of management capacity within Statistics SA. This challenge was frequently used to explain different aspects of the poor performance of the department during the period under review. In the Committee’s opinion this is the responsibility of the Statistician General, both in terms of the Public Service Act and in terms of PFMA, as well as in terms of the Statistician General letter of appointment, to ensure that the department has a management team with the necessary capacity to guide and manage the department. The Committee also noted that the lack of management capacity specifically, and the lack of capacity generally, impacted on every aspect of Statistics SA’s performance during the period under review. The Committee notes that the other entities reporting to the Minister of Finance, namely the National Treasury, the South African Revenue Service and the Development Bank of Southern Africa, all faced legacy problems at the time of the transition to democracy in 1994. But since then, the respective heads of these entities have succeeded in developing very strong, competent management teams. The Committee appreciates that there may be circumstances outside its knowledge that hampered the Statistician General’s efforts to resolve the capacity problems within Statistics SA. 2. Under-spending In respect of financial management, the department acknowledged the continued trend of under-expenditure and agreed that there was a need to strengthen planning systems and that Census 2001 was still creating problems in the organization. The Committee notes that it is cause for great concern that current problems continue to be attributed to previous Census especially when the department has already started planning for the next Census. 3. The large number of targets not reached The Committee notes the many instances in the annual report where targets identified in the strategic plan were not met. Statistics SA explained that a lack of capacity had necessitated that focus on achieving fewer targets. The department’s failure to deliver on the performance targets it set for itself reflects poorly on the management’s capacity to plan properly (taking capacity constraints into account), and to execute these plans. The lack of management capacity is also reflected in the weak working relationship with SARS related to the collection of data from the business register. 4. Failure to deal with suspensions It is a matter of concern that issues related to the suspensions of senior management have not yet been resolved, some of which have been outstanding for more than 12 months. The Statistician General could not give a satisfactory reason for the delay in resolving these issues. The Committee notes that the issues around these suspensions are impacting negatively on the performance of the department and therefore urges that they be resolved speedily. 5. Supporting rural municipalities The Committee inquired as to how much support was given to rural municipalities in the use of statistics. The department admitted they were unable to reach most rural municipalities, but indicated that they did have officers in each province that provide installations and training and support around these installations. The department commented on the difficulty they have with publishing certain statistics collected at the municipal level and the fact that the Statistics Act prohibited the department from publishing certain statistics if the municipalities did not want them published. It was not clear whether the real problem was a legal problem or a management problem, or simply that certain government departments or municipalities did not want the data published because it would reflect badly on their performance. 6. Evaluating Statistics SA web accessed information The department indicated that it used surveys to measure user satisfaction but conceded that this had achieved limited success, as users are not comfortable answering the relevant questions. However the department did not provide any suggestions as to how they would address the issue. In response to the issues of general and financial management raised by the Committee, more specifically those issues raised in the Auditor-General’s report, the Statistician-General requested an opportunity to respond after engaging with the Auditor-General prior to responding to the Committee. The Committee needs to make it clear that such a request for deferment is unacceptable and that in future the Statistician-General should be more prepared to deal with such matters in line with his responsibilities as set out in the PFMA.- Issues related to statistics
-
Measuring and reporting on the quality of statistics
The Committee notes that despite the matter having been raised during the previous year, the department has made little progress on developing measures to evaluate and report on the quality of the statistics it publishes. However Statistics SA indicated that plans are being implemented and the results would be available soon although it had not yet finalized the timeframes. Reports had been released on the measures to improve the quality of statistics however it was conceded that this information should have been published in the annual report. The department also elaborated on its intentions to integrate its data sets with those of other departments. The main objective of these plans is to improve the statistics produced by other departments so that these statistics could become official statistics. The World Bank supports these activities and consultants from the World Bank are providing assistance, however no timeframes or specific outputs were identified. The annual report showed many instances of targets for training members from other departments not being met and it is not clear how much these shortfalls impacted on the above plans of integration. The department also indicated that it has a number of processes in place to harmonize and profile data sets, some of which are collected from the business register. This process has occupied the Stats SA for “some time”. It would be important for it to identify the targets it will be able to achieve. The Committee notes that reporting on the quality of statistics and supporting indicators is something the department has been working towards for some time now and it would have expected more concrete progress to have been made, or at least more specific targets to have been provided. 2. The presentation and definition of unemployment information Stats SA confirmed that it had not abandoned any definitions of unemployment including that of “broad-based unemployment” but rather it had added new definitions to describe the unemployed and different categories of the unemployed e.g. those seeking and those who had given up seeking employment. The department conceded that the presentation of the data may have created confusion to the public, but it had learnt from this experience and intended presenting the information concerning different categories of the unemployed, e.g. those seeking and those who have given up seeking employment, in a more understandable manner going forward. -
Measurement of GDP
The Committee noted that it is concerned about how the informal sector gets reported on in the GDP figures. The department indicated that it had a number of approaches to calculate the informal sector’s contribution to GDP that included regular surveys and “diary information”. The development of new surveys to measure activity in the informal sector was also noted. Statistics SA agreed that it needed to develop stable sampling frames to provide accurate information and that this was difficult in the context of the informal sector. Statistics SA has many plans in place to improve these areas and address the many challenges, however these plans are not currently producing results. -
Progress with Community Surveys
The department commented on the difficulties they were facing with community surveys and the lack of consistency in sampling frames and the lack of standards for spatial referencing. It was reported that progress was made, but did not provide any concrete measurements of this progress. -
Committee resolutions
Based on its deliberations the Committee took the following resolutions: 1. The Minister of Finance must review the persistent lack of management capacity within Statistics SA, taking into consideration factors that may have hampered efforts to build a strong management team, and submit a report to the Committee setting out a plan of action to resolve the problem. 2. Before 18 January 2006, the Statistician General must provide the Committee with a comprehensive management report that responds directly to issues raised by the Committee. In that report the Statistician General should detail specific steps that will be taken to: ▪ improve the general management of the organization, ▪ improve the financial management of the organization, ▪ put in place proper risk management within the department, and ▪ improve the planning systems of the department. The management report must give timelines and appropriate performance targets, so that the Committee will be able to monitor the implementation of the measures the Statistician- General proposes taking. 3. The Committee requests that the Statistician-General furnish the Committee with a detailed report on all issues raised in the Auditor-General’s report. 4. The Committee requests Statistics SA to supply it with a written report on the obstacles it is encountering with regards to the publication of statistics obtained from municipalities. 5. The Committee requests the Statistician General to supply it with a written timetable for resolving the issues around suspended senior managers, that indicates by when the issues are likely to be concluded. The Committee further urges that the matters should be dealt with as speedily as possible as they are impacting negatively on the performance of the department. 6. The department must continue to work on ways to report on the quality of statistics reported and provide the Committee in writing with timeframes as to when applicable indicators will be developed and implemented. 7. The department must provide measurable targets and timeframes rather than describing their progress in general terms. -
Report of the Portfolio Committee on Finance on its Oversight hearing of the National Treasury (Treasury) Annual Report 2004/05, dated 8 November 2005:
The Portfolio Committee on Finance, having considered the annual report of the National Treasury for 2004/05 and the related presentations by the Director-General, the Chief Operating Officer and select heads of divisions within the National Treasury, reports as follows:
-
Introduction
The Portfolio Committee on Finance held a hearing on 19 October 2005 at which the National Treasury and senior managers from National Treasury presented the annual report for 2004/05 for the department. This was followed by a discussion of issues arising from the documents and presentations during which members of the Committee raised a number of issues. Further Committee deliberations took place in further scheduled Committee meetings.
-
-
General
-
Under-spending by the National Treasury
In response to the Committee’s inquiry regarding the under- spending in a number of sub-programmes NT explained that there was no actual under-spending but rather a result of measures taken by NT which had led to “savings”. -
Link to strategic plans
The Committee is of the view that all targets noted in the annual Report should be in line with National Treasury’s strategic plan. The Committee did not accept National Treasury explanation that in “pursuit of perfection” discrepancies arose when the strategic thrust of government changed and this was not reflected in the strategic plan of NT. Instead the Committee is of the opinion that there is a need for NT to review its strategic plan regularly prior to printing to avoid such discrepancies between targets and plans. As it was explained by National Treasury, that certain targets are extremely difficult to quantify, but now sensitised to this, National Treasury considers it as a challenge for future reporting on measurable objectives and outcomes. -
Taking the Budget to the people
The Committee noted that the National Treasury’s goal of taking the budget to 200 people is inadequate given the tremendous need to demystify the budget process. National Treasury conceded that this was inadequate but indicated it had taken several steps to meet the Minister’s objective of making the budget more accessible and easier to understand. Several measures had been implemented: One had been the recent appointment of an outreach officer, another measure was the establishment of a “Tips for Trevor” media and IT sites. A third measure had been the development and continual improvement of the budget guide, which identified salient issues, and fourth the regular hosting of town hall meetings, and school meetings where the budget could be explained in greater, more accessible detail to the public. 3. Administration 1. High vacancy rates The Committee asked what measures were being taken to ensure the high vacancy rates within the National Treasury were reduced. The National Treasury responded that despite the high vacancy rates, they had filled 209 posts in the period under review. It was also pointed out that the department had adopted a project management approach to filling the vacancies that included developing supply through training, advertising and aggressive recruitment, revising critical management areas and extending the intern programme. The department assured the Committee they are doing all they can to ensure that they retain staff, but explained that they have no control over the fact that there are better job opportunities outside of Treasury. -
Time taken to pay invoices
The Committee noted that the turn-around time of invoice payments was an average of 26 days. Given this the Committee was of the opinion that this did not exclude payments under and even more than 30 days. However National Treasury did not provide specific information on any payments more than 30 days, which in terms of the PFMA is deemed “late payments”. National Treasury did assure the Committee that the number of late payments was minimal and related to documentation problems. -
Quality of measurable objectives
The Committee noted that the measurable objectives for the Programme Administration are not of an acceptable standard. The Committee does not accept the National Treasury’s response that it is difficult to write measurable objectives for administration. In the Committee’s opinion National Treasury should be leading the way in this regard. -
Economic Planning and Budget Management
-
Delay on the Co-operative Banks Bill
The Committee expressed concern at the delay in the tabling of the Co-operatives Banks Bill. In response, National Treasury indicated that bad timing had caused the delay. The donors supporting the co-operative banking sector had withdrawn their support because the concept was rolled out while the Co-operative Banking Bill was still being drafted. It was also found that the structure of the proposed banks was unsustainable and lacked sound governance measures. -
Infrastructure spending
In response to the Committee’s inquiry on the slow spending on infrastructure and why such spending is not used more constructively, the National Treasury indicated that an assessment had recently been undertaken on the constraints on spending. The assessment found that within the departments of Health, Education and of Public Works the biggest challenge was a lack of project management skills. Furthermore the skills, which are required to perform simple administrative management and checking on the progress of projects was not available in these departments. Another problem raised by NT was “fiscal dumping” by provincial departments, which occurred when the department became aware of its slow spending pattern. To avoid under- expenditure such departments would then “dump” excess funds in other departments or even municipalities without sufficient warning to recipients. Given the tight time frames and notwithstanding the need for additional funds the recipients of fiscal dumping would often be unable to spend these funds. However NT assured the Committee that this problem will be addressed beginning with the 2005/06 Division of Revenue Act (DORA). New requirements in DORA will insist on three year spending plans detailing any transfers during this period to be published by all (organizations) departments intending to transfer funds. -
World Bank and EU funding
The Committee noted that there were certain projects that are being funded by the World Bank and the European Union. It enquired as to how long this has been the case, the conditions of the funding and how much funding the National Treasury has secured from these sources. The National Treasury noted the Committee’s reservations with regards to funding from these sources and assured the Committee that the National Treasury only accepts funding for projects that fit in with its own strategic objectives. -
BEE and PPP initiatives
The Committee enquired as to the success of existing Broad Based Black Economic Empowerment (BBBEE) and Public, Private Partnership (PPP) programmes and whether the intended benefits of these initiatives are being realized. The National Treasury acknowledged that fronting has been a problem, but that the policy decision to blacklist those companies and individuals guilty of this practice is yielding results. However, it was not possible to combat instances where a fully owned black company obtains work through legitimate means and then sells it on to a white owned company. However, the Committee was assured that this could be and was being addressed through blacklisting with regards to later tenders in which this practice occurred. On the issue of PPPs, the National Treasury indicated that the development of appropriate capacity in the provinces to manage PPP projects has been slow and therefore the PPP unit in the NT is processing all PPPs. National Treasury through its PPP unit is also training interns, who will return to the provinces. -
Relaxation of exchange controls
The Committee enquired whether the National Treasury had assessed the possible impact of relaxing exchange controls on the currency and whether these impacts would improve the competitiveness of the currency. The National Treasury indicated that the issue is evaluated on an ongoing basis, but that it is not clear whether relaxing exchange controls will actually weaken or strengthen the Rand. The National Treasury indicated that any future movement around exchange controls will consist of calculated steps aimed at ensuring that any changes do indeed benefit all South Africans. The National Treasury has no intention of simply following public opinion on the issue. 6. Municipal Finance and Management Act (MFMA) implementation The Committee questioned the value of the measurable objective which stated that “94% of municipalities have MFMA implementation plans”, which did not necessarily confirm specific progress with actual implementation. The NT indicated that it provides the MFMA implementation framework, but the achievement of implementation plans depended on the municipalities. -
Asset and Liability Management
-
Re-imbursements to the Post Office
The Committee enquired as to how re-imbursements to the Post Office fund were being handled and what measures were being taken to ensure these funds were properly managed, as per directive and guidelines of the PFMA. The National Treasury assured the Committee that there was an agreement in place that the money would not go to the Post bank account until all the conditions are met and therefore any fears of poor governance should be allayed. The National Treasury indicated that the Dedicated Banks Bill will cover regulation of the Post Bank. -
DBSA’s area of operation
The Committee enquired as to whether the DBSA was operating beyond the SADC region, and if this was indeed the case, whether the existing legislative framework covered such operations. The National Treasury indicated that if the DBSA wants to operate outside of the SADC region they only require the approval of the Minister of Finance. -
Guarantees for Saambou debt
In response to the Committee’s inquiry concerning whether any approved guarantees were for the resolution of Saambou’s financial problems, NT indicated that it had an obligation to protect depositors’ interests. -
Road Accident Fund
Given the financial state of the Road Accident Fund the Committee inquired what measures National Treasury had considered to address the issue. National Treasury pointed out that the Department of Transport was responsible for the RAF, which needed to be restructured. It further suggested the Committee pursue this with the department in respect of such plans and the monitoring measures in place. -
Guarantees for 2010
The Committee enquired why such large guarantees had been granted in relation to the Soccer World Cup 2010, and whether Parliament should not have been involved in approving these guarantees. The National Treasury assured the Committee that these guarantees were not typical guarantees in that they posed no financial risk to the state. They arose because FIFA insisted on guarantees that ensured they did not have to pay VAT and a set of specific fees. These were the items covered by the guarantees shown in the annual report. -
Financial Management and Systems
-
Detailed regulation of supply chain management
The Committee enquired as to why the supply chain management system in the MFMA is so detailed while the PFMA hardly deals with the issue. The National Treasury indicated that the main reason for the difference was that the MFMA was developed after the PFMA, and so benefited from the lessons learnt in relation to the latter. It was noted that regulations on supply chain management will be tabled to create consistency and that the matter will also be dealt with in the PFMA amendment bill. The Committee recommends that regulations on the PFMA amendment Bill be put before the committee before it is processed. -
Financial Accounting and Reporting
Through prioritizing the backlog in the submission of consolidated financial statements National Treasury has been able to reach a stage where these statements will in future be submitted regularly and routinely. -
Provincial and Local Government Transfers
-
Local government restructuring grant
The Committee focused on the utilization and criteria used to measure the success of the local government- restructuring grant. It was learned that NT had had to apply what it termed “soft” conditions on these grants otherwise no municipalities would use the funds. However it assured the Committee that local government accountability mechanisms should ensure that these funds are spent correctly. -
Municipal quarterly spending figures
The NT confirmed that it would begin compiling information from municipalities, in a quarterly format, which would be submitted to parliament. However it would adopt a different process from that followed in provinces. This is a consequence of the reporting cycle of municipalities, which is subject to accountability processes involving provincial legislatures. -
Committee Resolutions
Based on its deliberations the Committee makes the following resolutions: 1. The National Treasury must develop a set of measures to combat the problem of fiscal dumping. These must be presented to the Committee before the commencement of the next financial year. The National Treasury needs to be setting the example when it comes to the development of performance measures. The National Treasury must prepare an improved set of performance targets in its next strategic plan, particularly in relation to Programme. 2. The National Treasury must prepare and present to the Committee a detailed plan of how it intends supporting the implementation of the MFMA. 3. The National Treasury is requested to present its policy on the management of contingent liabilities to the Committee at a date to be agreed. 4. The National Treasury must table the regulations on supply chain management before the committee for consideration. -
Report of the Portfolio Committee on Finance on its Oversight of the South African Revenue Services (SARS) Annual Report 2004/05, dated 8 November 2005:
The Portfolio Committee on Finance, having considered the annual report of SARS for 2004/05 and the related presentations by the Commissioner and the senior management of SARS reports as follows:
-
Introduction
The Portfolio Committee on Finance held a hearing on 19 October 2005 at which the Commissioner and senior managers from SARS presented the SARS annual report for 2004/05. This was followed by a discussion of issues arising from the documents and presentations during which members of the Committee raised a number of issues. Further Committee deliberations took place in further scheduled Committee meetings. Given the parliament’s constitutional function to exercise oversight it would be useful if SARS would adopt the format developed by National Treasury for the presentation of Annual Reports. This would enable SARS to focus more succinctly on the key strategic issues. During its engagement with SARS and its deliberations, the committee raised issues around measures to reduce the tax gap, improve operational efficiency, the need to integrate customs control areas with other organs and departments of government and management of the tax “debt book”. The exceptional performance of SARS revenue collections, which are significantly beyond projections, is a reflection of the implementation of successful measures but also the economic performance in South Africa. 1. Strategic focus of annual report and linkage of performance to targets. The Committee is of the opinion that the reporting and oversight process could be further enhanced if SARS were to provide specific details relating to the administration of the different kinds of tax returns and other interactions with the public, and also provide a regional breakdown of SARS in this regard. The structure used by SARS provides a sound insight into strategic developments within the organization and should continue to be used but with a revised format corresponding to that developed by National Treasury (NT). The Committee appreciates the information on SARS’ performance across the organization. However, the Committee would like to see the reporting on performance being linked back to specific performance targets that SARS should set in its strategic plan. The Committee suggests that SARS should look at the performance tables presented in the annual reports of departments and develop a similar format that meets the special needs of the organization. -
Revenue Collections
While the Committee commends SARS for its increased revenue collection it nevertheless remained of the view that the pursuit of more robust revenue forecasts would contribute to the broader strategic planning on the fiscus. -
Link to targets set out in strategic plan
The Committee was not able to detect any obvious flow from the strategic plan to the annual report and in many instances it was difficult (if not impossible) to track how measurable objectives in the strategic plan had been achieved. The use of scorecards to report performance in the annual report makes the process of reconciling plans to actual performance difficult. The Commissioner pointed out that SARS is still a developing organization and was currently developing a charter of standards and quality of services that would be made public and allow for better evaluations of performance. Although SARS is not subject to the same reporting requirements as government departments, the Committee is of the opinion that there should be a clear link between targets and actual performance notwithstanding the use of scorecards. The Committee also expressed their interest in engaging with SARS around the charter of standards before it is finalized. -
Divergence between revenue targets and outcomes
In response to the Committee’s call for improved precision in revenue forecast the Commissioner indicated that these forecasts are made at a particular point in time and had to take into account a range of variables which made it difficult to ensure 100% accuracy. SARS also factor in their revenue projections on economists future estimates of what is likely to happen in the economy. However for the period under review three main reasons for these revenue overruns were put forward. Firstly the rapid rate of growth in the economy and increases in consumption exceeded all expectations. Secondly there is better than expected tax compliance of South Africans and thirdly the significant improvements in the internal processes and efficiency of SARS. -
The burden of tax
In response to the Committees comment on media reports that the tax burden in South Africa is higher than in other comparable countries the Commissioner assured the Committee that the media is misleading the public in this regard, as the comparisons they were making were not context specific. Furthermore the middle income level tax-payer is not being squeezed. -
Non-contributing Large Business Clients
The Commissioner shared the Committee’s concern at the number of non-contributing large business clients and confirmed that SARS was investigating the issue on an ongoing basis in an effort to close down these tax- avoidance schemes. Such clients employed a number of tax specialists. An example of advice been given was that large business clients purchased loss-making companies to offset and reduce company tax obligations. -
Operational Review: Better taxpayer experience
The Committee raised a number of issues in relation to estimating and reducing the tax-gap. First how does SARS estimate the tax gap? Secondly to what extent do increases in the number of registered tax-payers contribute to increasing revenue? Thirdly what is being done to reduce the GAP, and more specifically to combat tax evasion, broaden the tax base, eliminate tax havens, and ensure tax is collected from the informal sector. -
Estimating the tax gap
The Commissioner indicated that SARS uses internationally recognized techniques to measure the extent of the tax gap. These methodologies indicate that there is a clear link between increasing tax-payer registrations and closing the tax gap, but that they cannot be used to work out a precise relationship between the two variables. -
Reducing the tax gap
SARS has adopted a three-pronged approach, which was developed following extensive international research and comparisons, to close the tax-gap. The first prong of this strategy is to create awareness and reach out to people who are unaware. This outreach includes everyone from those in the informal sector to CEO’s and Chairpersons of large companies. At the grass roots level this awareness campaign is intended to inform people about their obligations and how they can pay tax. At the CEO level the awareness is about promoting responsible tax management and assisting large companies to reduce tax risk. The second prong of the strategy is to make SARS a service oriented organization. There is good evidence to show that people respond well to service. This is reflected in the training provided, the call-centres established, cultural changes and organizational improvements. The third prong of the strategy is to have a strong and visible enforcement arm. At present SARS has the capacity to contest smart tax evasion schemes, but the Commissioner noted that this is an area they need to continually improve and build capacity so as to remain one step ahead of the tax consultants. The Committee welcomed the number of measures that had been developed and adopted by SARS to reduce the tax-gap. -
Operational Review: Better operation efficiency
The Committee inquired about the actual percentage of errors requiring revised assessments, which could be attributed to mistakes made by SARS staff. SARS confirmed that the measures in place indicate that such errors are on a declining trend. These mistakes are measured manually in the absence of an automated system. SARS added that they do have processes to monitor staff and that staff under perform are sent for further training. SARS nevertheless acknowledged that they need to develop a system to monitor staff errors. SARS also added that better-informed and skilled tax practitioners will also reduce the number of errors and SARS is doing work with practitioners to help them reduce errors on the part of practitioners. -
Operational Review: Customs
The Committee raised a number of issues in this area, which covered custom controls, including measures to combat smuggling and the Auditor-General’s comments in this regard. -
Customs controls and ‘custom control areas’
In response to the Committees’ inquiry on measures to strengthen custom controls and speed-up the necessary infrastructure development at border posts and the failure to meet such targets SARS acknowledged the seriousness of the issue. Regarding the development of infrastructure at border control posts it was conceded that conditions were terrible and that staff were subject to less than satisfactory living circumstances. However, the Commissioner pointed out that SARS was dependent on the Department of Public Works for the development of infrastructure at border posts. The Commissioner also acknowledged that the standards at border control post in South Africa are not acceptable, when compared internationally. It was noted that Miami in the United States had implemented a practice where customs are responsible for large “customs control areas”, and where the operations of customs takes priority over all other activities. The Commissioner suggested that South Africa should develop a similar approach, with SARS exercising primary control in ‘customs control areas’ supported by other departments. The Commissioner acknowledged that given current arrangements this would require the agreement of the Departments of Safety and Security and Trade and Industry as regards jurisdiction. The Commissioner told the Committee that once the departments have reached an agreement then SARS could focus on modernizing and transforming equipment, ensuring greater visibility and building the relevant capacity. This would also enhance SARS’ ability to combat smuggling -
Combating smuggling
The Committee noted with concern the extent of smuggling, and inquired about the measures being developed to address the problem. Capacity constraints were at the core of the challenge to combat smuggling and the Commissioner pointed out the time constraints linked to its anti-smuggling capacity. This impact on the collection of relevant data and the development of sufficient risk profiles in this area. -
Scanners
In response to the Committee’s inquiry on the delay in purchasing and getting the scanners operational, the Commissioner indicated that the matter is tied up in a PPP process, which is managed by National Treasury. He also pointed out that SARS cannot afford to purchase the scanners without additional financial support and therefore have no alternative but to follow the present route. -
In-bond entries
The Committee asked what steps were being taken to address the Auditor-General’s comments on in-bond entries. The Commissioner indicated that SARS had made substantial progress in reducing the number of in-bond entries and that it appeared in the report because they were working from an initial large number. However they have built capacity to improve controls and the matter would improve over time. -
Operational Review: Improved compliance and risk reduction
-
Debt Book
The Committee raised a number of questions on the issue of the debt book, namely: ▪ What was being done to address the weaknesses identified by the Auditor-General with regards to the management of the debt book? ▪ What were the main reasons for the debt? ▪ What was the extent of the debt, how much of it is recoverable and how much is being written-off? ▪ What impact debt has on SARS operations and operational expenditure? SARS had inherited a large number of legacy problems, which needed to be addressed, while still servicing a large number of clients. The Commissioner acknowledged that existing procedures to manage the debt book were cumbersome and needed refinement. One of the legacy problems was the strategy of “cherry picking” incentives, which resulted in the debts which were easier to collect being targeted. This led to the more difficult debts not being dealt with in time, which often resulted in it becoming impossible to collect such debts. The Committee was assured that a new system, which should be in place by next year, will be automated and cover each individual debtor. The Commissioner indicated that SARS is using credit bureaus to provide data to trace debtors and professional debt collectors to assist in the collection of debt. However SARS recognises it needs to build capacity in this regard, not only in terms of systems and skills but the number of people to deal with debt. The Commissioner acknowledged the possibility of confusion arising from the reporting on debt but pointed out that this was due to the quasi-cash system in place at SARS, which is not consistent with financial reporting in other departments. The Commissioner indicated they would give a written explanation of the different classifications of debt write- offs. He also requested the Committee to assist the process by providing appropriate enabling legislation. The Committee accepted that SARS had a long way to go, but that it had already made significant improvements to improve compliance and was taking steps to reduce risk through more robust management of the debt book. -
Committee resolutions
Based on its deliberations the Committee makes the following resolutions: 1. SARS should develop an approach that would ensure greater consistency in the flow of information from its strategic plan through to its annual report. SARS should report directly on their strategic plans and use scorecards only as a means of setting targets in the strategic plan. 2. SARS must engage with the Committee around the development of the charter of standards and quality of services. 3. SARS must present details of measures it is taking to improve the accuracy of its revenue forecasts. The Committee suggests that SARS should join with the National Treasury and research the issue in detail, if this is not being done already. The Committee would like to see a plan for such research, and to receive information on the findings of the research once it is completed. 4. SARS, working together with the National Treasury, must develop information comparing the tax burden in South Africa with other comparable countries. This information should be presented in the SARS annual report in future years, so that the public can obtain the correct information on the issue. 5. SARS must develop an appropriate system to monitor and track errors in assessments that can be attributed to its staff. Once the system is in place, SARS must set appropriate targets in its strategic plans for improving performance in this regard, and report on the issue in its annual report. 6. SARS must take control of infrastructure development at border posts and contract directly with service providers that are able to deliver the necessary services in a timely manner. 7. SARS, the Department of Safety and Security, and the Department of Trade and Industry must form a joint working group to investigate the use of ‘customs control areas’. This group must report back to the Committee with recommendations on this issue before June 2006. 8. SARS must develop appropriate performance targets in its strategic plan for the collection of debt, and report on the issue in its annual report. 9. SARS, working together with the National Treasury, must develop appropriate framework legislation to facilitate debt collection and the write-off of debts. -
Report of the Portfolio Committee on Defence on the Fact- finding Visit to Advanced Technologies and Engineering Company, dated 25 October 2005:
The Committee, having undertaken the fact-finding visit on 19 August 2005, reports as follows.
-
EXECUTIVE SUMMARY
A delegation [Appendix A] of the Portfolio Committee on Defence visited Advanced Technologies & Engineering Co. (ATE), a defence-related company¹ on 19 August 2005, to ascertain the state of business at ATE, specifically, and the defence-related industry, in general.
ATE upgrades avionic and weapon systems, provides full integrated logistic support and develops and manufactures unmanned aerial vehicles. ATE is an earner of foreign currency, with 70% of its turnover in 2005 earned from exports. The delegation found that ATE is a technologically advanced company that contributes to the industrial base of South Africa.
-
BACKGROUND
The local defence-related industry is of strategic importance to South Africa, because it provides the equipment² to the South African National Defence Force (SANDF), so that it can execute its constitutional mandate, i.e. to defend the Republic and its people. The type and quality of the equipment affects the combat-readiness of the SANDF, which necessitated the Portfolio Committee on Defence to visit defence-related companies to establish whether these companies produced equipment that compliments the missions of the SANDF. The committee decided on ATE, because: (1) it is one of the five biggest³ defence-related companies in South Africa; and (2) it is one of the main suppliers to the SANDF.
-
FINDINGS
The delegation found that: a. ATE, specifically, and the defence-related industry, in general, contribute to the technological and industrial base of South Africa. b. The defence-related industry is a big earner of foreign currency.
-
THE FOCUS OF ATE
ATE is a private and independent company and was established in 1984 as part of an international military systems group. It has approximately 400 employees, mainly engineers. The company regularly subcontracts to the South African defence-related industry, e.g. when it provides upgrades to military helicopters or upgrades to gun sights, helmet sights, cannons, turrets, missiles, 20mm ammunition, radios and electronic warfare (EW) equipment.
-
Helicopters
The current operations in the helicopter business area included integrated avionic systems for new and existing helicopters (e.g. the Rooivalk combat helicopter), complete helicopter modernisation (e.g. the Russian Mi-24 and Mi-17), as well as full integrated logistic support and technology transfer.
-
Fighter Trainer Aircraft
ATE was contracted by BAE Systems to work on the avionics and weapon systems of the light fighter trainer aircraft (i.e. the Hawk) of the South African Air Force (SAAF). ATE will be responsible for the design, development, integration, flight testing and production of the above-mentioned systems.
-
Unmanned Aerial Vehicle
ATE has developed and manufactured the Vulture, an unmanned aerial vehicle (UAV). The Vulture can be launched from a vehicle in unprepared terrain within 30 minutes. It is used to gather information: (1) for more accurate artillery firing and (2) on the movements of enemy forces (i.e. soldiers and vehicles). It is a 100% South African product.- Main Battle Tank
ATE improves the “night fighting capability” of main battle tanks by ensuring fast and accurate firing, whilst on the move and/or at moving targets. It upgrades the fire control system, the gunner sights, the commander sights and the stability of the turret. -
-
RECOMMENDATIONS
The delegation wishes to make the following recommendations:
-
The defence-related industry is sophisticated and strategic; and therefore ATE and other South African companies should be encouraged to continue with high technology developments and the increase of the South African content of their products.
-
The Portfolio Committee should also visit other defence-related industry companies and entities in South Africa.
-
Report to be considered.
NOTES
1. The defence-related companies refer to companies that concentrate
totally or partially on the manufacturing of defence or security
equipment.
2. The major equipment includes armaments, vehicles, ships and
aircrafts, while the minor equipment includes boots, uniforms and
rations.
3. The ‘big five’ are those defence-related companies with annual
revenue of more than R250 million. They are:
a. Denel
b. Reutech
c. ATE
d. Grintek
e. ADS (African Defence Systems)
APPENDIX A -DELEGATION
1. Mr S B Ntuli, MP - Delegation leaders
2. Dr G W Koornhof, MP
3. Mr M S Booi, MP
4. Mr G P Mngomezulu, MP
5. Mr S Dodovu, MP
6. Ms X C Makasi, MP
7. Mr G Campher - Committee Secretary
8. Ms M van Niekerk - Researcher
WEDNESDAY, 7 DECEMBER 2005
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Provincial and Local Government on the Cross-Boundary Municipalities Laws Repeal Bill [B 36 - 2005] (National Assembly – sec 75), dated 7 December 2005:
The Portfolio Committee on Provincial and Local Government, having considered the subject of the Cross-Boundary Municipalities Laws Repeal Bill [B 36 - 2005] (National Assembly – sec 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with amendments [B 36A – 2005].
-
Report of the Portfolio Committee on Science and Technology on Study Tour to Northern and Eastern Cape Provinces, dated 15 November 2005: The Portfolio Committee on Science and Technology, having conducted a study tour to the Northern Cape Province and Eastern Cape Province from 1 – 5 August 2005, reports as follows:
The delegation, under the leadership of the Chairperson of the Committee, Mr. E N N Ngcobo (ANC), included Mr. A R Ainslie (ANC), Professor I J Mohamed (ANC), Ms F Mahomed (ANC), Mr. S N Nxumalo (ANC) and Mr. Johnny Ramrock (Committee Secretary).
Purpose of the study tour:
To visit various Science Councils and monitor Department of Science and Technology Poverty Alleviation Projects.
Visit to the South African Astronomical Observatory (SAAO) and the Southern African Large Telescope (SALT), Sutherland, Northern Cape
The South African Astronomical Observatory (SAAO)
The South African Astronomical Observatory (SAAO), located in Sutherland, Northern Cape, is South Africa’s national facility for optical and infrared astronomy, and forms part of the National Research Foundation (NRF). The SAAO’s major focus is to further fundamental research in astronomy and astrophysics, national and international, by providing and utilizing its astronomical facility. The Southern African Large Telescope (SALT)
The Southern African Large Telescope (SALT), currently under construction in Sutherland, will be the largest single telescope in the southern hemisphere, with a hexagonal mirror array 11 meters across. SALT is a flagship project, intended to demonstrate that the frontiers of science are not entirely reserved for the developed world. SALT will provide a first –class facility for fundamental research in Africa in a field where South Africa has a long history of excellence. It will strengthen ties with researchers around the world, and provide opportunities for young scientist and engineers in a stimulating high-technology environment. SALT will be able to record distant stars, galaxies and quasars a billion times too faint to be seen with the unaided eye-as faint as a candle flame at the distant of the moon.
Briefings:
The Committee Delegation met with officials and staff of both SAAO and SALT and was briefed on the latest construction development regarding SALT, which will be launch, officially in November 2005. Members were also taken to the sites in the evening to observe SALT in action and were very impressed with the high technology used to operate the telescope and the output derived from it.
Hydroponics, Beaufort West, Western Cape Hydroponics is a plant – growing method, without the usage of soil, in a nutrient solution. It is a useful method of conducting research with controlled condition of nutrients availability.
The Hydroponics Project, in Beaufort West, is a Section 21 Company, managed by the CSIR, started in 2002. Funding was provided by both the National (Department of Science and Technology) and Provincial (Economic Development and Social Services) Governments. The Beaufort West Municipality also provided contribution in the form of basic infrastructure, like clearing of land, connection to the municipal water source and provision of discounted electricity and water.
Woolworths and Pick & Pay are current clients of the project, buying herbs like: fresh coriander, basil and spinach. New products are tested on a regular basis. With the extended production capacity, it is envisaged that the company will deliver up to 1000kg of fresh herbs per week.
The project currently employs some 60 people, the majority being women.
Briefings:
The Delegation met officials responsible for the project and was provided with a progress report. Members also met staff and were taken on a tour of the project. The Deputy –Mayor of Beaufort West, who also sits on the Board of the Company, addressed the Delegation on the working relationship with the Municipality. He mentioned that the last major milestone in terms of the expansion of the project was the recent completion of a new packing room for packaged herb products. Some of the challenges faced by the Company, including being forced to implement short – time to avoid lay-offs. This has led to reduced wages and subsequent unhappiness amongst staff. The Deputy-Mayor and the Chairperson of the Committee officiated during the opening of the Beaufort West Hydroponics Company Packaging Room.
Members were also taken to the Central Karoo Leather (CKL) factory to see the leather products that are produced in the factory and were able to interact with management and staff. The factory is a Poverty Alleviation Project funded by the South African Government. The CKL is a joint venture between the Department of Science and Technology (DST), the Council for Scientific and Industrial Research (CSIR) and the Central Karoo community. The vision is to develop Central Karoo Leather into a sustainable business.
Biodiversity: The African Coelacanth Ecosystem Programme
A Coelacanth is a marine lobe-finned fish belonging to a group of primitive fish. It is called a Coelacanth because there is no spine, but rather a hollow notochord, which is a thick walled cartilaginous tube filled with an oily fluid. Coelacanths are very special fish-true survivors.
Coelacanths date back millions of years to well before the time of the dinosaurs. They were believed to have been extinct for over 70 million years. These unique prehistoric creatures provide an extraordinary window to the past, enabling us to look back in time. They also unlock the door to the future, opening opportunities to explore deep reef ecology, build capacity and sustain marine resources so that those who depend upon the sea will have a better future.
The South African government launched a coelacanth programme in 2002, after a colony of these “ living fossils” were discovered off the coast of KwaZulu-Natal. It is now one of the flagship programmes of the National Research Foundation (NRF).
The African Coelacanth Ecosystem Programme, managed by the South African Institute for Aquatic Biodiversity (SAIAB), at the University of Rhodes, in Grahamstown, integrates physical and biological sciences, harnesses engineering and technology, extends collaboration across national and international borders and encourages young people to become knowledgeable. The Programme has also drawn together countries such as the Comoros, Madagascar, Mozambique, South Africa and Tanzania to work as partners in order to sustain the marine resources they share.
Briefings:
The Delegation met with officials responsible for the Programme and was provided with a presentation on the Coelacanth Ecosystem including an update. Members were very impress with the work done in the Programme and noted the concern raised that the funding for the Programme was inadequate. The Committee agreed to discuss the matter with the National Research Foundation (NRF).
Vice-Chancellor of Rhodes University.
The meeting with the Vice – Chancellor, Dr D R Woods and the Dean of Research, Prof J R Duncan, provided the Delegation with an insight on where the university is regarding transformation. Most black graduates are snapped up by the private sector and don’t go into teaching. A large number, interested in science, take up chemistry as a major, resulting in the largest chemistry honours class in the country, last year. On the downside, the entrance into physics and maths tends to be very low. General research is done at a fundamental level. Fifty seven percent of students are women, fifty percent are black at post graduate level and of undergraduates 70% are black. The university also has a funding programme specifically targeting black female students studying science. A mentorship programme has also started for students who are in their first year of Phd.
The Committee was invited to the National Science Festival held annually in March by the University and Sasol.
The Delegation also visited various Science departments, including the faculty of Pharmacy and the faculty of Human Kinetics and Ergonomics. Human Kinetics encapsulates the academic discipline that focuses on the scientific investigation of human movement. Ergonomics is the scientific analysis of humans within their working environment.
A brief stop at the Makana Meadery introduced Members to a project on bee keeping and the making of honeywine/mead. Makana Meadery was formed to commercialize the traditional Xhosa honeywine/mead, iQhilika. As such it has a research focus on biotechnology, a marketing focus on honey products and a beekeeping focus to provide honey for brewing and sale. Makana Meadery is an entirely independent company operating under the auspices of Rhodes University.
The Delegation ended their visit to the University with a meeting with Science Postgraduate students. Most, and in particular black graduates, expressed frustration in not being able to find employment in their field. This frustration made many consider the option of emigrating.
Members empathized with the frustrations and concerns raise by the students and promised to bring it to the attention of relevant stakeholders, including the Department of Science and Technology and the Department of Education.
Recommendations
• On SALT, the Committee recommends that the Department of Science and
Technology (DST) interact with the Department of Education to try and
facilitate school trips to the site.
• On the Hydroponics Project, the Department of Science and Technology
must monitor the cost involved and whether the project is commercially
viable.
• On the Coelacanth Ecosystem Programme, the Committee recommends that
the Department of Science and Technology increase funding towards the
project.
• On Rhodes University, the Committee recommends that the Department of
Science and Technology look into why so many Black science graduate
students cant find employment.
Acknowledgements:
The Committee wishes to thank all the people that it met and interacted with during the study tour. The hospitality accorded to the Delegation made the task of the Committee much easier and affordable.
Report to be considered.
- Report of the Portfolio Committee on Science and Technology on Study Tour to Pretoria, Gauteng Provinces, dated 15 November 2005:
The Portfolio Committee on Science and Technology, having conducted a
study tour to Gauteng Province from 15 – 19 August 2005, reports as
follows:
The delegation, under the leadership of the Chairperson of the
Committee, Mr. E N N Ngcobo (ANC), included Mr. A R Ainslie (ANC),
Professor I J Mohamed (ANC), Ms F Mahomed (ANC), Mr. S N Nxumalo (ANC),
Mr. P Nefolovhodwe (AZAPO), Mr. B Mnyandu (DA), Mr. A Mlangeni (ANC)
Mr. Johnny Ramrock (Committee Secretary) and Ms Nthabiseng Borotho
(Committee Assistant).
Purpose for the study tour:
To visit various Science Councils and monitor Department of Science and
Technology Poverty Alleviation Projects.
Council for Mineral Technology (MINTEK)
MINTEK was established in 1934 and it’s mandate is to serve the national interest through high – calibre research, development and technology transfer that promotes mineral technology, and to foster the establishment and expansion of small, medium and large industries in the field of minerals and products derived from them. MINTEK’s vision is to be a global leader in mineral and metallurgical research, development and technology transfer. The mission is to serve South Africa by promoting technology, industrial growth and human development. MINTEK reports to the Department of Minerals and Energy. MINTEK is a Science Council and operates more or less like a parastatal that is why it also reports to the Department of Science and Technology.
Briefings:
The Delegation was welcomed and given an overview, by the CEO of MINTEK, Dr Paul Jourdan. He shared the knowledge that the first underground mine in the world, was established by the San people.
Presentations were also made on Minerals Policy and Sustainable Development for Small Scale Mining and the Kgabane Training Programme.
The Committee paid brief visits to some of the other divisions, especially those engaged with Poverty Alleviation Projects, which included: Pyrometallurgy, Mineralogy, Nanotechnology and Small Scale Mining.
National Research Foundation ( NRF)
Established in 1999, the National Research Foundation (NRF) is the government’s national agency responsible for promoting and supporting research and the development of high-level skills in all fields of the humanities, social and natural sciences, engineering and technology. Its mandate therefore positions it as a key agency in confronting three of South Africa’s major challenges in achieving national and continental prosperity:
• A robust knowledge culture underpinned by quality education
accessible to all
• Eradication of poverty and attendant diseases
• Wealth creation not limited to a privileged minority.
Briefings:
Dr Khotso Mokhele, President of the NRF welcomed the Delegation and gave a background report of the institution. He mentioned that the main task of the NRF is to produce quality PhDs who can drive the science and technology systems in South Africa. Focus areas include: support for research institutions for the production of large numbers of quality PhDs. This will include the support programmes for placement of graduate students in the science councils and industry laboratories, strategic placement of research equipment, support for improvement of outputs for postgraduate students, as well as building research capacity in the higher education sector. All these activities will be undertaken in partnership with other stakeholders. The creation of centers of excellence is to become a major component of research and scientific progress in South Africa. These initiatives will in future become an even more important part of the NRF’s challenges since it is the main implementer of this initiative.
The Council for Scientific and Industrial Research (CSIR)
The Council for Scientific and Industrial Research (CSIR) was established on October 1945 in terms of the Scientific Research Council Act of 1945. The CSIR was accorded the status of a statutory body outside the Public Service, with its main objectives being: “to undertake both pure and applied research for the development of the natural resources and industries of the country; to train the personnel required for scientific research within the country; to provide proper co-ordination of research throughout the country, including government departments, technical colleges and universities; and to provide for the collection and dissemination of information with regard to research”.
Briefings:
The Delegation was met and welcomed by the CSIR President and CEO: Dr Sibusiso Sibisi. Dr Phil Mjwara, Head of Group Executive Research and Development and Strategic Human Capital Development, provided an overview of the CSIR, since the CEO had to leave for an urgent meeting with the Deputy Minister, Mr D A Hanekom.
Members of the Committee made visits to the CSIR Research and Development Units and National Research Centres, including Biosciences, Material Science and Advanced Beneficiation, Defence, Peace, Safety and Security, National Infrastructures and Spatial Initiatives, Natural Resources and the Natural Environment and the CSIR Wind Tunnel facilities that included experimental aerodynamics.
The Committee was impressed with what they saw and observed especially in the division of aerospace, science and Wind Tunnel facilities are of world class level, and also the division of bioscience in which demonstrations were performed for the Committee’s observation on gene manipulation on plants.
Department of Science and Technology (DST)
The vision of the Department of Science and Technology (DST) is “to create a prosperous society that derives enduring and equitable benefits from science and technology” and the mission is “to develop, coordinate and manage a national system of innovation that will bring about maximum human capital, sustainable economic growth and improved quality of life for all”. The DST is responsible for putting frameworks in place that encourage people to develop excellent solutions with global applications. It is responsible for promoting research and development and the effective application of science and technology in meeting local challenges. It is responsible for adding value to projects run by other sector-specific departments and to achieve better results by applying the best technology and innovation
Briefings:
Dr R Adams, Director-General of DST, addressed the Delegation on, among other things, the relocation of the Department to the new building within the CSIR precinct and South Africa to host the International Corporate Governance Network (ICGN) conference in 2007. Due to other engagements in the Presidency, he had to leave and the briefing was subsequently lead by Dr Paterson, the Deputy Director General of DST.
Various other officials of DST also made presentations on their respective programmes in DST, which are Science and Technology Expert Services (SciTES), Frontier Science and Technology Programme in the new DST, Government Sector Programmes and Coordination and DST International.
Dr Bernie Fanaroff, Project Manager, spoke about South Africa’s formal bid to host the largest radio telescope ever built, the Square Kilometre Array Radio Telescope (SKA). The programme aim to attract young people into high tech and science through exciting projects and also to bring back SA expatriates to work in South Africa.
Council for Geoscience
The mission statement of the Council for Geoscience is to be a world-class public organization, which provides excellent geoscience information and services for the benefit of the people of South Africa.
The Council for Geoscience (CGS) is one of the National Science Councils of South Africa and is the legal successor of the Geological Survey of South Africa. The Council is a modern institution, boasting excellent facilities and expertise, ranking among the best in Africa. The CGS’s strength lies in its core of competent geoscientific and technical staff, encompassing virtually all the disciplines of the geosciences.
Briefings:
The Committee was met and welcomed by the CEO of the Council for Geoscience (CGS), Mr Thibedi Ramontja who also provided a background report on the Council.
This was followed with presentations on Water Geosciences (Hydrology), Seismic Monitoring and Tsunami Fail Safe Systems in South Africa, the role of the CGS in promoting the small-scale mining sector in South Africa and Airborne Geophysical Operations.
The CGS also briefed the Committee on the difficulties they had encountered when they took over the institution from the old management in terms of transformation. Advancement they had achieved recently is amongst some of the difficulties they had mentioned, was the ageing equipment to perform at a world class level in the country, lack of funding, etc.
Achievements they had mentioned was the implementation of their human resource strategy, which they had developed, whereby they visit higher institutions of learning in order to identify potential candidates whom they can support and develop for future human capital in the country for geoscience. They later mentioned that this strategy has already gone as far as to send the candidates as mentioned above overseas for advanced training in geoscience. They appealed to Parliament for support in this important social transformation strategy.
iThemba LABS (Gauteng)
The iThemba Laboratories is the leading nuclear science facility in South Africa. It reports to the Minister of Science and Technology through the National Research Foundation (NRF) and focuses on the following three main areas of research:
• Fundamental nuclear physics,
• Treatment of cancer by means of radiation,
• Radioisotope production, and
• Is also engaged in the development of nuclear physics base techniques
for research in the development of the diamond industry.
The availability of proton and neutron beams as iThemba’s key feature places it in a position of significance in the treatment of cancer patients, especially because proton and neutron beams are not available in any other part of South Africa.
Briefings:
The Delegation was met and welcomed by the head of iThemba LABS (Gauteng), Dr I Z Machi who also provided a report on what the institution does.
This was followed with presentations on: AMS and microprobe: Ion Implantation and Environmental Isotope. The Committee was also informed, by black nuclear scientist, on concern over the lack of transformation within the institution and the problems experienced as a result. The Delegation was asked to raise the concerns with the Department of Science and Technology so that it can be addressed.
Recommendations
• The Committee recommends that the Department of Science and Technology
provides the Committee with a full report on transformation at iThemba
LABS (Gauteng), following many concerns raised in the Portfolio
Committee’s Study Tour.
• The Committee recommends that DST should provide support and
leadership on CSIR efforts to sustain and develop some of its world-
class divisions, such as aerospace science division (in particular
Wind Tunnel facilities), bioscience division for genetic engineering
research, just to mention a few points.
• Committee recommends that a strategy in human resource be developed to
absorb graduate students into the science system of South Africa.
Acknowledgements:
The Committee wishes to thank all the officials and staff of the Department of Science and Technology and entities that were visited for assisting Members with their tasks and for contributing to the success of the study tour.
Report to be considered.
THURSDAY, 8 DECEMBER 2005
TABLINGS
National Assembly and National Council of Provinces
-
The Minister of Finance
a) Government Notice No 1040 published in Government Gazette No 28150 dated 28 October 2005: Borrowing powers of water boards listed under Schedule 3 Part B of the Public Finance Management Act, 1999 (Act No 1 of 1999).
-
The Minister for Justice and Constitutional Development
a) Progress reports in terms of section 13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993) on magistrates (M S E Khumalo; K Sulliman and M F Mathe) suspended for alleged misconduct.
MONDAY, 12 DECEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Assent by President in respect of Bills
1) Patents Amendment Bill [B17B – 2005] – Act No 20 of 2005 (assented to and signed by President on 8 December 2005); and 2) Adjustments Appropriation Bill [B37 – 2005] – Act No 21 of 2005 (assented to and signed by President on 29 November 2005).
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Water Affairs and Forestry on Legislative Oversight through Annual Reports: the Case for the Department of Water Affairs and Forestry, 2004/05 Public Hearings: Alleviating Poverty – Delivering Services 12 – 14 October 2005
-
Introduction
Annual reports are the key reporting instruments for departments to report against the performance targets and budgets outlined in their strategic plans, read together with the Estimates of National Expenditure (ENE), and Budget Statement Two (for the provincial sphere). Annual reports are therefore required to contain information on service delivery, in addition to financial statements and the audit report. It is meant to be a backward- looking document, focusing on performance in the financial year that has just ended. It reports on how the budget for that financial year was implemented.
To gauge the performance of the Department of Water Affairs and Forestry for the 2004/05 financial year, the outputs for 2004/05 and 2005/06 highlighted for the four programmes, Administration, Water Resources Management, Water Services and Forestry, will be correlated from the following source documents:
• Strategic Plan 2004/05 – 2006/07.
• Estimates of National Expenditure.
• Presentations at Public Hearings of the Portfolio Committee on Water
Affairs and Forestry, 12 – 14 October 2005. to that of the Annual Report 2005 and other source documents, so as to assess the way in which DWAF functioned in the delivery of its core aim, that is to:
Ensure the availability and supply of water at national level; to
facilitate equitable and sustainable social and economic
development; ensure the universal and efficient supply of water
services at local level; and promote the sustainable management of
forests.
Section 1: Significant Shifts in Departmental Policy and Programmes
• Change from irrigation boards’ to water user associations.
• Transfer of water service operations to Municipalities. There are
significant costs associated with the transfer, including personnel
costs and restructuring costs. This has resulted in an increase in an
expenditure on Administration in the DWAF. The transfer of Water
Services should be completed by April 2006.
In September 2003, the Strategic Framework for Water Services was approved. The Framework updated the 1994 White Paper on Water Supply and Sanitation and ensured alignment between policy for water services and the evolving municipal policy framework. • Commercial and indigenous forests to be transferred out of the Department.
Both the above will impact on the staffing structure of DWAF, in water services and forestry, in particular.
• In the 2003/04 financial year, the water sector faced severe drought
conditions in many parts of the country. Fortunately, late rains
somewhat alleviated the situation. Extra efforts were required to
implement drought emergency works, particularly in the Western
Highveld area, and the allocation of additional funds late in the
financial year necessitated rollovers for work that will only be
completed during the 2004/05 year.
The drought was preceded by a particularly severe fire season for forestry and agriculture. Overall, the forest industry lost 30 176 hectares of plantation to fire, resulting in a loss of 4,5 million tons of direct production valued at R695,7 million and a loss of an estimated R3 Billion worth of downstream timber products. The costs of firefighting and replanting amounted to R227 million. Departmental losses represented about 15% of the total. Further damage was only averted by cooperation between all members of the forest industry family. In recognition of the losses suffered, the Department is working with organised forestry to find ways to temporarily exempt growers from water use charges for areas affected by the fires.
• Water resources in South Africa are limited and highly variable. The
country’s water resources would be sufficient to support social and
economic development for the future provided they are judiciously
managed, and wisely allocated. The fundamental objectives for
managing South Africa’s water resources are to achieve equitable
access to water resources and their sustainable and efficient use.
The National Water Resources Management Strategy, (NWRS) has been adopted by Government to guide municipalities and local government on how to better manage water resources in South Africa. Municipalities and Local Government need to implement the NWRS with all urgency.
• Catchment Management Agencies and Water User Associations
Catchment Management Agencies (CMAs) and Water User Associations (WUAs) have been established in certain areas. However, other areas are still lagging behind.
The 2005 State of the Nation Address highlighted the following targets for the sectoral Departments:
• To ensure that within the next five years, all households would have
easy access to clean running water.
• During the current year, more than 300 000 households will be provided
with basic sanitation.
• Improve the capacity of Municipalities to ensure that the target of
providing sanitation to 300 000 households per year is met. The
targeted timeframe is 2007.
• To ensure that by December 2004, through programmes undertaken by the
Department of Water Affairs and Forestry (DWAF), government will
provide clean and potable water to the 10th million South African
since 1994.
• Municipal Infrastructure Grant (MIG)
The President has pointed out that there are approximately three-quarters of households that are receiving the free 6 kilolitres of water per month. These, however, are households that have the infrastructure to provide potable water. A key resource for municipalities to improve on the poor infrastructure in other areas is the Municipal Infrastructure Grant (MIG). In addition, municipalities should be encouraged to see how they could make use of the R85 billion1, which will be provided by the South African Banks over a period of three years to finance infrastructure development in rural areas.
In addition, DWAF administers a R1.2 billion grant over the next three years that would go into the eradication of the bucket system.
• Transfer of Water Schemes
Although transfers of water schemes have been completed in certain areas, other areas are lagging far behind. DWAF had to complete these transfers this financial year (2005), but could not do so. DWAF has therefore requested from Treasury to complete the transfers by 2006. General Issues/Questions to Consider
To what extent have municipalities and local government implemented the NWRS?
Water losses remain a challenge. The impact and cost of such water losses must be quantified by municipalities, but they do not appear to have the requisite capacity to do so. Will DWAF intervene in this process?
How has DWAF monitored the progress of the establishment of Catchment Management Agencies. What were some of the encountered problems? How are these being addressed?
The Committee, in collaboration with DWAF should monitor progress made by municipalities in making optimal use of the MIG so that the bucket system, and pit latrines, so commonly used in rural areas can be phased out.
Municipalities should be encouraged to see how they can use the R85 billion, which will be provided by the South African Banks over a period of three years to finance infrastructure development in rural areas.
The transfer of water schemes should be completed, and DWAF needs to provide a detailed progress report regarding the transfers.
How is DWAF playing a role in facilitating and educating municipalities, and local government in capacity building programmes?
Section 2: Overview of Programmes as Reflected in the Annual Report and Presentations by DWAF
Programme 1: Administration
The programme provides for the management of the Department, including: policy formulation by the Minister and senior management, centralised administrative, legal and office support services, departmental personnel management, financial administration and information technology.
The two main components of programme 1 are corporate services and financial administration.
The Corporate Service component achieved the following:
• Human Resource Development:
A strategy on the implementation of the Work Place Skills plan was devised. It will be implemented during 2005. Negotiations on the incorporation of LGWSETA into the PSETA and ESETA. Pilot learnerships implemented in water purification, waste water treatment and water reticulation.
• Human Resource Management: The pension management process was
strengthened and the Performance Management and Development Strategy
was implemented. Increased support to restructuring process in line
with Resolution 7 of 2002.
• Communication: Campaigns such as Water and Arbour weeks, and
other national campaigns such as 16 Days of Activism, women’s
month, Heritage and World Aids Days were coordinated and
implemented. These formed part of the unit’s major activities with
resounding successes marked by the participation of the highest
level in government.
• Administration: The Unit is subdivided into district divisions,
namely: provisioning services, office services, protection
services, land requirements and land usage, and transport. A key
activity was the National Treasury procurement integration process
that was implemented successfully. Land and servitudes were
successfully acquired and affected persons were compensated. Land
is being acquired for the raising of the Flag
Botshelo Dam. The acquisition should be finalised by end October
2005. Approximately, 36 applications for development around 2006.
The Financial administration worked toward the following:
• The department budget was simplified by restructuring from 8 programmes to 4, thus making management and accountability clearer. The Branch was able to implement the provisions of the Public Finance Management Act (PFMA), which include separating the trading account activities from the main Exchequer account activities, opening separate bank accounts for these different activities, as well as implementing procurement processes in line with the Act. • The branch developed processes to implement accrual accounting, including a full asset management system in accordance with the PFMA. The risks affecting the department have also been assessed and strategies have been developed to address them. A turn-around strategy is being implemented to address the audit qualifications.
Programme 2: Water Resources Management
The purpose of water resources management is to ensure that the country’s water resources are protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner for the benefit of all people.
The National Water Act (36 of 198) replaced previous legislation with an equitable system of administrative authorizations to use water, and Government became the public trustee of the nation’s water resources. The Department is responsible for administering all aspects of the new Act, and for the development and implementation of related policies, strategies and regulatory instruments. It is also responsible for planning, developing, operating and maintaining the water resources management infrastructure owned by the state, and for overseeing the activities of all water management institutions. The role will change over time, as 19 new regional water management institutions – catchment management agencies are established. The creation of a national water resource infrastructure agency is also being considered to manage existing national infrastructure and to develop new infrastructure.
The main achievements in Programme 2 as highlighted in the 2005 Annual Report reflect the following:
• The National Water Resources Strategy was established in January 2005.
• The process of establishing new international, national and catchment-
based water management institutions progressed during this period, and
moved the Department towards its ultimate role of sector policy maker
and regulator.
• A number of international developments and agreements regarding
studies and establishment of joint basins were concluded.
• The process of separating the management and further development of
national water resources infrastructure from its other activities with
preparations for establishing a new Infrastructure Branch with effect
from 1 April 2005. The establishment of a new public entity – the
National Water Resource Infrastructure Agency commenced and will be
considered by Cabinet early in the next financial year.
• Ten new water user associations were established and constitutions for
a further four associations – for revitalised irrigation schemes in
Limpopo Province – were in preparation. Ten existing irrigation
boards were transformed into water user associations, and a further
six transformation submissions were received for review and
processing. Progress was made in arrangements to transfer operating
and maintenance responsibilities for five government water schemes to
water user associations – Boegoeberg, Kakamas, Lower Olifants, Sand-
Vet and Van der Kloof – but there were other delays in finalising
staff transfer agreements in three of the schemes, whilst the other
two requested deferral of transfer because they were experiencing
drought-related difficulties.
• The fourth consecutive year of sub-normal rainfall throughout most of
the country necessitated continuing support to municipalities to
deliver water services where sources – especially groundwater sources
had failed or were failing.
• A five-year plan was developed to facilitate the integration of all
aspects of water resources monitoring, covering the quantity and
quality of surface and groundwater. This was complemented by the
development of improved methodologies to determine groundwater
recharge, potential and use, and groundwater interactions with surface
water.
Assessment of the Achievements of Programme 2: Water Resources Management as highlighted in the Annual Report
The key outputs and service delivery trends as mentioned in the Annual Report also highlight the actual performance of this programme. The actual performance column in the Annual Report is an important quantitative indicator of progress made in Programme 2. For Programme 2, the actual performance, highlights, amongst others, the following:
• Subsidies granted to four groups of farmers.
• Draft Policy for Water Allocation Reform for South Africa to achieve
equity in access to the use of water resources finalised after
consultation with key stakeholders.
• Models are being set up for five catchments – modeling will be done
during compulsory licensing.
• Internal Strategic Perspectives (departmental forerunners of catchment
management strategies) completed for all 19 water management areas.
• Validating of registered water use and verification of claimed
existing lawful use substantially completed in the Vaal Catchment, and
commenced in the Mhlathuze.
• Commitments to bulk water users and water boards met.
• 142 500 hectares of invasive alien vegetation cleared.
• About 12 000 person years of employment provided. Programme 3: Water Services
The purpose of Programme 3 is to ensure that effective, efficient, sustainable and affordable water and sanitation services are provided to the people of South Africa, as well as economic users.
In 2004/05, the Department continued to move from its role of construction and operation of water and sanitation services to its regulatory role. This is indicated in the budget allocation for its Capex-programme from an all time high during 2003/04 of R1505,371 million (including donor funds) to R587,018 million for 2004/05, reducing even further to R388,873 million during 2005/06 and to R140,963 million for 2006/07. This function has been taken over by the Municipal Infrastructure Grant (MIG) programme.
On Operations and Maintenance, 95 schemes out of a targeted total of 317 have been transferred out of DWAF, representing an annual budget amount of R124,370 million.
During 2004/05, the sector leadership role was taken forward through programmes including free basic water, Masibambane, participation in the MIG programme and other support to Local Government. Many Water Service Authorities (WSA’s) benefited from DWAF support through advice/support services from the regional offices.
The 2005 Annual Report in its overview of access to basic services, states that:
During the year under review, water supply was provided to a
further 1,51 million people, and sanitation to a further 1,3
million people. There are currently 3,7 million people with no
access to a basic water supply, and a further 5,4 million who have
access to a water supply that does not meet the RDP service levels.
There are still 16,0 million people without access to basic
sanitation infrastructure.
The main achievements in Programme 3, Water Services, as highlighted in the 2005 Annual Report reflect the following:
• Achievement of an important milestone in service delivery – the
provision of safe drinking water to the 10th millionth person since
1994. The sector has also achieved the Millennium Development Water
Supply goal by halving the backlog since 1994. it was also the first
year that the bulk of the capital funds for basic services were
allocated directly to municipalities through the Municipal
Infrastructure Grant (MIG) – the MIG allocation being R2,3 billion
(R1,5 billion allocated for water supply and R0,8 billion for
sanitation). The Department has thus focused on its new role of
sector leader with responsibility for policy, regulation, information
and support.
• Regarding the capital programme, DWAF’s core focus was to ensure
municipal compliance to MIG project conditions, to support
municipalities in the eradication of service backlogs, and the
provision of sustainable services.
• The Department continued to promote the eradication of the bucket
system and to replace it with more dignified and appropriate types of
sanitation services. R1,2 billion, in addition to the existing MIG
allocation, has been negotiated and committed over the next three
financial years to ensure that the bucket system is completely
eradicated.
• Good progress was made on implementing the Strategic Framework for
Water Services, as approved by Cabinet on 17 September 2003,
especially on the development of Institutional Reform and Regulatory
strategies. The process of Institutional Reform has proved to be
especially challenging.
• The new Water Services Regulation Directorate produced a first draft
of the National Water Services Regulation Strategy, which will be put
through a rigorous internal and external consultation process during
the next period.
• As reported in the State of the Water Services Sector, there is
justified concern over the quality of water supply and sanitation
services at municipal level, especially around drinking water quality
and reliability of service. This highlights the importance of the
regulatory function and systems.
• The implementation of Free Basic Water services programme went well.
Approximately 95% of municipalities are now supplying FBW to all or
part of their municipal population. This translates to 69% of the
total RSA population. The programme is making a huge difference to the
poor (households with less than a R1000 income/month). In total, 23
million poor get their basic water free of charge. The Department’s
provincial support units are still assisting municipalities with the
implementation of the policy.
• A Free Basic Sanitation policy has been drafted, and it is hoped that
as soon as it is approved, a formal FBS programme will be rolled out.
• Health and Hygiene education and promotion continued to be part of the
Department’s Water and Sanitation programme and efforts were to embed
it into the MIG projects implemented at municipal level. The
Departments of Health, Housing and DWAF have developed a health and
hygiene package that will not be part of Housing Customer Care
programme.
Regional Operations
• Transfers continued to take place within the Joint Policy position and
there has been consistency in the implementation of the policy since
adopted by the Inter Departmental Transfer Committee. Assets with a
present day value of R1250 million have been transferred since the
inception of the programme. In most cases, associated staff were also
transferred or seconded to Local Government or relevant receiving
institutions. A further 30 agreements have to be concluded by March
2006.
• The oversight role played by the South African Local Government
Association (SALGA), DWAF, DPLG and National Treasury helped to ensure
that transfers happen within the agreed framework. In terms of the
programme which includes the Division of Revenue Act, all transfers
should be effected by 30 March 2006, with all conditional grants
(subsidies) phased out by June 2011 at which stage, the conditional
grants will be incorporated into the equitable share allocations to
local government.
• The Department of Public Service and Administration (DPSA) issued a
circular on the transfer framework to facilitate the transfers of
personnel between spheres of Government.
• DWAF is working on a number of initiatives to ensure that the
transition period following a transfer is as smooth as possible,
including the drafting of an ‘after-care’ framework for staff who were
transferred from DWAF.
Assessment of the Achievements of Programme 3: Water Services as highlighted in the Annual Report
The key outputs and service delivery trends as mentioned in the Annual Report also highlight the actual performance of this programme. The actual performance column in the Annual Report is an important quantitative indicator of progress made in Programme 2. For Programme 2, the actual performance, highlights, amongst others, the following:
• Basic water supply was provided to 1,51 million people.
• Sanitation facilities were delivered to 1,3 million people. This was
more than 300 000 households.
• The MIG allocation for water supply amounted to R1 501 million and the
DWAF Water Services Supply budget was R352 million. The MIG
allocation for Sanitation services amounted to R778 million.
• 9 100 bucket type toilets were replaced by either VIP’s or water borne
units in the Free State. R1,2 million, in addition to the existing
MIG allocation, has been negotiated and committed over the next three
financial years to ensure that the bucket system is eradicated
completely.
• 95% of municipalities have reported the implementation of a FBW policy
and FBW reaches 75% of the population served by infrastructure.
• The monitoring and oversight role of DWAF for Water Boards continued
through a formal evaluation process, including appraisal of Policy
Statements and Business Plans.
Programme 4: Forestry
The Department promotes the sustainable management of South Africa’s indigenous and commercial forest resources. It aims to ensure that commercial plantations are regulated and managed in a sustainable manner to promote investment, employment, competition and black empowerment, as well as rural development. It seeks to ensure that there is an effective system to monitor, regulate and manage the protection and use of South Africa’s indigenous state forests.
The 1996 White Paper on Sustainable Forest Development focused on the transformation of the forest sector to serve the needs of South Africa and its people. The National Forests Act (84 of 1998) and the National Veld and Forest Fires Act (101 of 1998), which followed, impact on the work of the Department. A great deal of attention has been focused on the restructuring of the forests and plantations run by the Department. The process of disposing of the category A or large and economically viable plantations is largely complete. The disposal included substantial elements of black economic empowerment.
The main achievements in Programme 4: Forestry, as highlighted in the 2004/5 Annual Report reflects the following: • In terms of Plantation Forests, two leases of state plantations were concluded during the 2004/05 financial year. These lease transactions are part of the restructuring of SAFCOL, which, it is anticipated, will be finalised during 2005/06 with the conclusion of the Komatiland forestry lease, which has been delayed while the proposed transaction is considered by the Competition Commission. • The transfer of the Department’s remaining plantations has not progressed due to a number of challenges posed by the need to reach agreement with key stakeholders. • The plantations have been re-grouped into management clusters reflecting their forestry potential in the context of their transfers to communities. These assets represent an important opportunity for strengthening and re-generating local economies and to achieve the objectives of BBBEE. • In terms of indigenous forests, an important aspect was the finalisation of the delegation to SANParks of the management control over approximately 97 000 hectares of State Forest land.
Assessment of the Achievements of Programme 4: Forestry as highlighted in the Annual Report
The key outputs and service delivery trends as mentioned in the Annual Report also highlight the actual performance of this programme. The actual performance column in the Annual Report is an important quantitative indicator of progress made in Programme 4. For Programme 4, the actual performance, highlights, amongst others, the following:
• Revenue increased by 20,5% from 2003/04 from R39, 795 million to R47,
934 million.
• A report is due in May 2006 on staff profiles.
• The policy on transfers of indigenous approved.
• All audits of leased plantations conducted.
Comments on Structure and Policies Guiding the Report and Presentations
General
- The actual performance column in the Annual Report is an important quantitative indicator of progress made by DWAF.
- A detailed reading of the actual achievements for programmes could provide the Committee with sufficient information to undertake its oversight functions.
- Questions on each of the actual performances could be asked, and a systematic programme could be set on each of the listed performance mentioned.
- Although the Annual report provides further detail on the number of people receiving access to basic water supply, water tariffs, water boards, etc. the report is silent on the challenges faced by various sectors in working toward implementing policies to provide basic water and sanitation to all citizens.
- Although all programmes summarise the achievements, no mention is made of the challenges encountered at various levels. The document is silent on the mechanisms that DWAF or local government or municipalities would use to address the real concerns of people who need access to these services.
- No mention is made of whether studies on creating a national database of service providers to all 9 provinces, which would account for each household. No mention is made of empirical studies, undertaken by DWAF or municipalities to engage the level/degree of satisfaction of services by people.
- No mention is made on the manner in which DWAF would monitor and evaluate progress made in delivery of services.
- Water losses remain a challenge. The impact and cost of such water losses must be quantified by municipalities, but they do not have the requisite capacity to do so.
- In many instances, the outputs detailed in the Multi-Year Strategy Plan 2004/05 – 2005/06 and the Annual Report correlated.
- None of the outputs or actual performance input in the Annual Report highlights the challenges confronted by DWAF itself or entities in fulfilling its mandate.
- DWAF interacts extensively with the Portfolio Committee on Water Affairs and Forestry in Parliament. This is not reflected in the Annual Report. It is a serious omission, as the Portfolio Committee provides a useful oversight function over DWAF, and its entities.
- In providing information on the Main Achievements of programmes, sentences are far too long and convoluted. This detracts from the core issues that need to be raised.
-
The report does not provide sufficient information that would allow a picture of how DWAF, local government and other stakeholders are working to concretise its stated vision.
- The 2004/5 financial year was the last one in which DWAF provided water services. The 2005/6 AR should therefore reflect the transfer for water services to municipalities under the Municipal Infrastructure Grant (MIG). This means that reference would have to be made to DWAF as sharing responsibility for regulating service delivery by ensuring that municipalities are: properly focused on ending the backlog in sanitation and water supply; adequately capacitated to deal with service delivery; adequately supported to ensure maintenance of equipment while still providing people access to clean water.
Related to the above, the issue of how the transfer of services to local municipalities may affect reporting to parliament
Related to the role of DWAF in guiding and supporting the development and roll out of the MIG process, it is important to note that the achievement of DWAF’s stated KPIs depends on how successful the local municipalities are in delivering services. The 2005/6-2006/7 multi-year SP refers to (on page 25) this as “well established, supported and maintained”. This must be interrogated. ANC MPs need more detail of the manner in which this process is unfolding. “Well established, supported and maintained” does not allow the DWAF to share with ANC MPs the problems and challenges that is emerging from this multi-level, inter-departmental process.
There is unfortunately, in these documents, no an indication that particular areas have been identified as having greater needs than others. This, in spite of the fact that there is a greater need in under-serviced areas of our country in urban, peri-urban and rural areas.
Overview of Programmes Programme 1: Administration
It is within Programme 1, Administration, that much of the challenges to re- arrange DWAF in appropriate ways to ensure deep transformation, that the challenges lie. The challenge faced by DWAF has to do with the maintenance and transformation of a government department. Maintenance suggests stability and maintaining the status quo. Transformation on the other hand suggests action and a deliberative drive to re-arrange and restructure into another form. In the case of DWAF, these seemingly contradictory aspects of DWAF’s processes at this time have to happen for the purpose of achieving the same developmental objective: that of ensuring that services are regulated properly and rolled out efficiently and decisively to ensure transformation of areas where they previously were non-existent. In short, these types of contradictions have to be managed within the department to ensure that South Africans’ lives are improved and its economy is consistently developing.
DWAF has to maintain a high level of managing water as resource, regulating service delivery and maintaining the affairs of water and forestry in the country. It does this while simultaneously restructuring its programmes, sub-programmes and branches in order to ensure that human resources are efficiently utilized. It is within the ambit of DWAF’s programme of Administration that the tension between maintenance of the system and its transformation and restructuring is situated. This has to be managed across DWAF’s three line-function programmes (water resource management, the regulation of service delivery and regulation of forestry) as well as between different levels of government and other relevant departments of government.
In some cases it involves a process of staff having to be re-positioned and placed within appropriate sub-programmes or across to other departments to deal with, for example, the transfer of water services to the local government sphere. It is, however, the same staff whose morale has to be kept up, who has to be capacitated and developed in spite of the unpleasant effects of being re-positioned elsewhere along the restructuring of DWAF.
This aspect of restructuring must not be ignored or under-estimated. The sub-programmes of Labour Relations, Restructuring and Organizational Management Support are key areas in which the maintenance of the system and restructuring plays itself out. The AR does not provide sufficient particularities in its details. For example, it uses the broad Public Service Labour Relations Sector as a measuring stick to proclaim that its management decisions affecting DWAF employees were “fair and above average”. This does not provide a useful enough idea of the intricacies involved in restructuring that lies ahead. It is hope that the 2005 AR and its multi-year Strategic Plan dated 2005/6-2007/9 will provide detail that gives more serious consideration to the complexities involved.
Programme 2: Water Resources Management
- The National Water Resources Strategy has been adopted by government to guide municipalities and local government on how to better manage water resources in South Africa. Municipalities and local government need to implement the NWRS with all urgency.
- The Water Resources programme has cooperated with the Departments of Agriculture to put in place an effective support programme for agriculture, focusing on the needs of emerging farmers. This needs to be evaluated and monitored.
Programme 3: Water Services
- The restructuring in the DWAF further has to do with transforming it from service provider (of water in the case of Programme 3, Water Services) or manager (of Forests in Programme 4, Forestry) to being the regulator of these line functions. That requires the transfer of equipment, expertise, and information and in some cases staff to appropriate positions at other levels of government or the department. It also means that such transfers require interesting but crucial inter-departmental and multi-level government cooperation. DWAF, the Department of Provincial and Local Government (DPLG), South African Local Government Association (SALGA) and Treasury as well as key Departments such as Education (DoE), Health, Housing and in some cases Public Works, are involved.
Rather than to just list the effects of the restructuring exercises as achievements, it would be useful for the department to provide the Portfolio Committee with a detailed picture of the process and the intricacies involved in them in each of its four programmes and sub- programmes It is important to reflect on this as a process. We understand that it is broken up in the AR and SP into units that can be managed, but that in actual practice it is an on-going process. It is important so that the AR would include reflection of challenges involved in giving effect to the restructuring effort at other levels of government and society. In this way, the collective can be on the same level and challenges that may arise in the future can be strategically anticipated. Related to this, the issue of transferring delivery of services to water services authorities (WSAs) at municipality levels has to be identified as one that will for the foreseeable future have effects on the DWAF structures as well as its annual audits. It will also have an impact on attempts to transform the department and populate it with much needed skilled personnel in key areas.
Programme 4: Forestry
Under Programme 4, the movement of indigenous forests and plantations out of the DWAF’s functional areas will also reduce staff numbers and result in the increase of its budget to ensure the transfer and redeployment process. No main achievement for forestry was recorded in the Annual Report. Instead there appears to be a mismatch of information on page 35, as it contains the same information as the main achievements of the water resources management.
Section 3: Financial Issues
3.1 Financial Components as reflected in the Annual Report, 2004/05
The Department’s total expenditure for the 2004/05 financial year amounted to R7, 791 billion. For the past two years, their spending level was approximately 99%. Two of their four financial statements, the Water Trading Account and Equipment Trading Account, received qualified reports from the Auditor-General. A turnaround strategy to address these shortcomings was developed.
In 2004/05, the Department continued to move from its role of construction and operation of water and sanitation services to its regulatory role.
Water Services
A reduction in the budget allocation for its Capex programme indicated that from an all-time high during 2003/04 of R1505, 371 million (including donor funds) to R587, 018 million for 2004/05, reducing even further to R388, 873 million during 2005/06 and to R140, 963 million for 2006/07. This function has been taken over by the Municipal Infrastructure Grant (MIG) programme.
On Operation and Maintenance, 95 schemes out of a targeted total of 317 have been transferred out of DWAF, representing an annual budget amount of R124, 370 million.
The programme to transfer the water services works that it currently owns and/or operates to the relevant water services authorities has made good progress. In terms of the programme, which is included in the Division of Revenue Act, all transfers should be effected by 31 March 2006, with all conditional grants (subsidies) phased out by March 2012 at which stage, the conditional grants will be incorporated into the equitable share allocations to local government. By the close of the financial year, transfers had been made to 25 of the 55 Municipalities affected with assets transferred valued at R1, 250 million.
Sanitation
In the area of sanitation, an additional ring-fenced funds amounting to R1, 2 billion were included in the MIG for a three-year programme commencing in 2005/06 to eradicate the bucket system.
Spending Trends
Programme 1: Administration: Underspending R16, 251 million
The Annual Report maintains that the underspending in this programme should not impact on service delivery. The reports states that the saving is due to delays in the transfer of staff to municipalities due to protracted negotiations with receiving municipalities, and funds will be rolled over to the 2005/06 year. Programme 2: Water Resource Management: Underspending: R29 913 million
The report maintains that the impact of underspending in this programme should not impact on service delivery. The report notes that due to the Bohlabela Municipality responsible for this emergency project, it was unable to make sufficient progress in the short time between the allocation of funds, and for the end of the financial year to enable the Department to transfer the funds to them. Contracts were concluded and orders placed, but the deliveries and/or payments could not take place before 31 March 2005.
Programme 3: Water Services: Underspending: R0, 001 million
No impact on service delivery.
Programme 4: Forestry: Underspending: R0, 001 million
No impact on service delivery.
2. Financial Components as Highlighted by DWAF’s Presentation
1. Report of the Auditor General on the Financial Statements
Vote 34: Exchequer Account – unqualified audit. Emphasis of matter in respect of: • Asset and inventory management. • Internal controls. • Value for money audits with regard to management of fleet services and the outsourcing of information systems. • Information systems audit of the network security. • Late submission of the audit report.
Water Trading Account: Disclaimer of audit opinion. Qualifications in respect of:
• Financial statements.
• Property plant and equipment.
Emphasis of matter in respect of re-submission of financial statements.
Equipment Trading Account: Adverse audit opinion. Qualifications in respect of:
• Property plant and equipment and related depreciation.
• Retained earning.
Emphasis of matter in respect of the re-submission of financial statements.
National Forest Recreation and Access Trust: Unqualified audit. Emphasis of matter in respect of:
• Operation of the National Forest Recreation Trust.
• Progress with previous Standing Committee on Public Accounts (SCOPA)
resolutions.
2. Annual Financial Statements: Financial Management Improvement Plan
The department has developed a turnaround strategy to address shortcomings related to:
• Capacity.
• Financial policies and procedures.
• Financial training:
• Development of Risk Management Strategy.
• Standardisation of business processes across the
department.
• The department is developing the financial system for
trading
• entities to operate accrual accounting.
• Standardisation of business processes across the
department.
• Improved record keeping.
• Fraud prevention plan strategy has been developed and
approved by the Audit Committee.
• Addressing previous audit queries.
Comments on the Financial Component
A key issue that arose from the hearings is the importance of collaboration and cooperation amongst stakeholders, levels of government and the people to whom the services must be rendered.
Transfers are not as effective as should be and for the Annual Report to claim that delays in the transfer of staff to municipalities would not impact on service delivery is misleading. The spending trends and explanations given for under spending was unacceptable to the Committee, and raises issues of the extent to which the Department is evaluating or monitoring the progress made by municipalities on the delivery of services.
While the Portfolio Committee noted the comments made by the Director- General to effect turnaround strategies to address problems with qualified reports, the Committee raises strong concerns that the financial component of DWAF has not been resolved in the last six years.
Section 4: Entities
4.1 Overview of Public Entities as Reflected in the Annual Report
The following public entities report to the department:
• Trans-Caledon Tunnel Authority (PFMA Schedule 2 Major Public Entity)
No grants are made to the Authority, as it is funded from income on tariffs levied on the sale of water and other loans. Where other parties benefit from services provided, the TCTA is empowered to recover the costs of such services.
• Water Research Commission (PFMA National Public Entity Schedule 3 –
Part A)
No grants are made to the Commission as its work is funded by a levy on water users.
• Water Boards (PFMA National Government Business Enterprises Schedule 3
– Part B)
The water boards were established as water service providers that report to the Minister of Water Affairs and Forestry. The primary function of these boards is bulk water service provision within their supply areas. Water Boards have been set up to be financially independent institutions. In terms of section 34(1) of the Water Services Act, water boards must strive, amongst others, to be financially viable. In this respect, they are required to repay and service their debts; recover their capital, operational and maintenance costs, make reasonable provision for depreciation of assets, recover the costs associated with the repayment of capital from revenue over time; and make reasonable provision for future capital requirements and expansions.
The impact of their financial performance on the Department has therefore been limited. Apart from providing seed funding for some of the newly formed water boards and operating subsidies, where they have undertaken specific functions on behalf of the Department, the Department has only in exceptional circumstances had to provide financial assistance to some of the water boards.
Other Entities
• Komati River Basin Water Authority
The Komati River Basin Development Project is a joint development between South Africa and Swaziland in terms of the treaty on the development and utilisation of the water resources of the Komati River Basin, ratified in
- In terms of the treaty, funding of project costs is guaranteed by the South African government and the Department is responsible for payment of these costs.
• National Forest Recreation and Access Trust
The only source of revenue for the Trust is interest earnings.
Organisations to which transfer payments have been made
• Grants to Municipalities: Reasons for Transfer Payments
Transfer payments are made to municipalities in accordance with the exit strategy of the Community Water and Sanitation Programme from the department to Local government as detailed in the Division of Revenue Act. Transfer payments are made to ensure that Local Government have funds to implement those projects identified in Water Service Development Plans (WSDPs).
Departmental Agencies and Accounts
• Glukstadt Irrigation Board
The Glukstadt IB defaulted on a loan to Land Bank, guaranteed by DWAF as well as a state loan granted in the 80s. The Land Bank obtained a judgement against the Irrigation Board, but was unable to recover anything, as the board had no assets. Land Bank demanded the final settlement payment from DWAF.
• Impala Water User Association
DWAF had to pay shortfalls in instalment repayments as a result of some members of the Impala WUA refusing to pay their instalments on a loan taken from Rand Merchant Bank. The loan is guaranteed by DWAF for an amount of R150 million. The basis of their refusal is a challenge to the National Water Act. The case will be heard in the Court of Appeal during November
- Also included in the above is an amount of R553 104, which is DWAF’s contribution to cover its agreed portion of the legal cost for the various court actions.
• Kalahari East Water User Association (WUA)
Kalahari East WUA obtained a Land Bank loan in 1989 amounting to R77, 4 million guaranteed by the Government. The above portion of the loan had to be written off for which National Treasury made funds available.
• Blyde River 800
Payments of interest on the portion of the Land Bank loan allocated to Blyde 800 project, which will provide opportunities for high value irrigation farming for historically disadvantaged farmers.
• Lower Blyde River Water User Association (WUA)
The WUA defaulted on a loan taken from Land Bank, guaranteed by the Government. In order to prevent interest accumulating at some R250 000 per month, it was decided to settle the loan, but to continue with legal action against the WUA to recover the outstanding debt.
• Kanon Eiland Water User Association (WUA)
Judgement was granted against the WUA for the settlement of a debt of R12 million, guaranteed by the Government. The judgement could only realise half the amount owed and DWAF was asked to honour the balance in terms of the guarantee.
Section 5: Case studies of entities performance as reflected in presentations
- Water Boards
In terms of the role of water boards, the committee requested that submissions focus on its role in service delivery, with a specific focus on delivery of services to the poorest of the poor. The following targets were used as a guideline to inform the discussions:
• Water supply to all South Africans by 2008.
• Functioning basic sanitation by 2010.
Amatola Water Board2
In 1997, the Amatola Water, a state owned entity, was created to render bulk water supply services within its area of authorisation. This includes the Amathole District Municipality and portions of the Chris Hani, Ukhahlamba and Cacadu District Municipalities in the Eastern Cape Province. Currently, AW renders primary service of bulk water provision to the local municipalities of Buffalo City, Ngqushwa, Nkonkobe and Amahlati located within the Amathole District Municipality. AW manages water services assets to the value of R250 million that can produce a total of 102.74 megalitres per day. Secondary services that include technical, financial, institutional and environmental services are rendered throughout the Eastern Cape Province on a project-by-project basis.
In terms of the provision of water supply to all South Africans by 2008, AW noted the following direct benefits to the poor:
• In the 2004/05 financial year, 21.36 million kilolitres of potable
water was produced. Of this, an estimated 24% benefited rural poor
households in the local municipalities, mentioned above. The
distribution of the remaining 76% of the potable water is not within
the control of Amatola Water, but can be sourced from the respective
municipalities that received the water.
• Water service capital projects to the value of approximately R81
million for the Amatola District Municipality, of which 85% focused on
the elimination of the water backlog, and upgrading existing water
infrastructure. This function benefits the poor through the delivery
of water services in an efficient, cost effective and professional
manner. Amatola also supports the District Municipality to utilise its
limited human resource base more effectively for all its functions.
• Consumers benefit directly from Amatola Water’s capital expenditure
programme.
• There is a continuous awareness programme via radio programmes, school
tours and National Events.
In terms of the indirect benefit to the poor of water supply by 2008, the following was noted: • Amatola has been appointed by the Chris Hani and Amathole District Municipality to provide a transfer management service to the Municipalities for the transfer of assets and staff from the Department of Water Affairs and Forestry, for the water service provision function. • Strategic planning is a continuous process at Amatola Water. This component of planning ensures that Amatola Water is always aligned with the service delivery vision of the Water Service Authorities it serves. This alignment is vital to the effective utilisation of limited financial and human resources. • The Working for Water Project is a multi-faceted programme to ensure South Africa’s water resources are maintained. AW has been involved in the programme through the eradication of water hyacinth on the Laing Dam, Wriggleswade Dam and Kubusi River in the Amathole District Municipality in 2004/05. • A crucial factor in service delivery is working relationships between key role players and Amatola participates in strategic forums such as the South African Association of Water Utilities and the Integrated Water Service Management Forum of the Eastern Cape Province. • Training is a key tool in achieving one of Amatola’s corporate values.
Namakwa Water Board
The water scheme was constructed during the 1970s, and the Board came into existence in 1982. The scheme consists of an extraction point on the Orange River at Henkries Mouth, purification works at Henkries, a booster pump station at Doringwater, and approximately 130 kilometres of pipeline, which gravitates to Springbok. Another 120 kilometres of pipeline stretch from Springbok to Kleinzee.
The Board is a bulk supplier of water to the Nama Khoi Municipality. The communities served are the Steinkopf, Okiep, Concordia, Nadabeep, Bulletrap, Carolusberg, Springbok and Kleinzee. The estimated total population is approximately 50 000.
The total water sales per annum is the following:
• 1.9 million kilolitres amounting to 160 000 kilolitres per month.
• Raw water supplied to Dadelryk at Henkries is at a total of 77 243
kilolitres per annum.
• The total water sales amounts to R6.5 million per annum.
• Total income is R7.4 million and total expenditure is R8.6 million.
• The current water tariff is R2.99 + V.A.T.
• The budget budgeted for the deficit as its contribution to keep water
affordable for the poor consumer. The deficit was funded through
surplus funds of the Board.
The composition of the Board is as follows:
Initially, there were 8 Board members, but currently, there are only 5 members. The term office of the Board expired, but the Minister granted an extension of the term of office to afford Nama Khoi Municipality the opportunity to conduct a section 78 assessments. Nama Khoi Municipality will thereafter be the water service provider. Namakwa is one of the smallest boards in the country. The workforce consists of 32 personnel, of which 5 are women.
The upgrading of water networks of 7 kilometres of pipeline between Henkries and Doringwater at a cost of R7 million, financed by a loan from the Development Bank of South Africa. At completion, the pipeline will increase the supply capacity of the network.
The following challenges were noted:
• Upgrading of the existing old pipeline (Eenriet – Okiep).
• The maintenance of infrastructure.
• Possible expansion of the pipeline to supply water to Kamiesberg.
• Control of pollution that occurs upstream.
• The pumping costs are high.
• Need to reduce water losses and pipe bursts.
Magalies Water
Magalies Water is a state owned Water Board providing a wide range of related water and sanitation services and operates in four provinces that include Gauteng, Limpopo, Northwest and Mpumalanga. The area of operation is in the extent of 34000 kilometres. The Board of Magalies Water was originally established by Government Notice 234 of 1969, with various subsequent amendments to both its name and area of supply.
In 2004, Magalies experienced growth and moved in the areas of service delivery, especially the Bulk, Scientific Services and Retail Operations. Magalies Water provides water services to a wide range of stakeholders that include municipalities, urban, peri-urban, rural communities, mines, state entities and commercial industries across an area of 34 000 km² in four provinces. Magalies Water manages approximately 35 000 individual households under contracts from the municipalities.
The overall business performance (2004/2005) reflected the following:
• Exceeded several of the Key Performance Benchmarks and targets that it
set for itself in 2004/05. These benchmarks were attained in areas
such as water quality, revenue, and debt management. The challenge
however, still exists as far as cost recovery in the retail
environment is concerned. Further initiatives are constantly being
pursued with Municipalities in order to jointly deal with cost
recovery whilst ensuring continuous provision of water to affected
communities and consumers.
• The management of rural, urban and peri-urban schemes, involving
internal reticulation, constitutes the Retail Operations of the Board.
An agreement has been reached with the City of Tshwane Metropolitan
Municipality for the provision of all retail services within the areas
of Temba/Hammanskraal. The board assists the Local Municipalities with
tariff setting and development of bylaws.
• Magalies Water, together with ABSA and Bigen Africa successfully
concluded a contract with the Rustenburg Water Services Trust, for the
provision of bulk sanitation and potable water services functions on
behalf of the Rustenburg Local Municipality. In respect of bulk
sanitation services, Magalies Water manages the operation and
maintenance functions of the Rustenburg Sewage Treatment Works and the
Boitekong Sewage Treatment Works.
Mhlathuze Water Board
Mhlathuze Water focused on strategic alliances that would provide solutions through sharing of expertise and resources in a sustainable manner. Their competencies included programme management, technical support on management of bulk and retail water and sanitation schemes, water quality management and corporate governance.
Mhlathuze Water served five areas: City of uMhlathuze (Richards Bay), uThungulu District Municipality, Ilembe District Municipality, uMkhanyakude District Municipality and Zululand District Municipality. Their regional initiatives involved implementing projects for the Department of Water Affairs and Forestry. They had thus far implemented schemes reaching 470 000 people. They were also involved in two projects to reach a further 30 000 people. This project was still awaiting approval.
The following challenges were noted by Mhlathuze Water:
• Lack of sharing experience.
• Unreliable water resources.
• Some areas are difficult to service.
• Sanitation had not been part of their planning.
• Seasonal droughts in Mlubatuba posed further problems in servicing the
region.
Mhlathuze Water forwarded the following recommendations:
• Municipal structures needed greater capacity.
• A more proactive role should be played by Sector Education and
Training Authorities (SETAs), and the Department of Water Affairs and
Forestry had to do more work on the free basic water scheme.
• A new national initiative was needed to encourage consumers to pay for
water services above the free limit.
Sedibeng Water Board
Sedibeng Water maintained that their long-term strategies for sustainability were reflected in their annual report, and these had shown progress on all strategic imperatives. The Board achieved cost savings of 20% on their budget, but their revenue declined by 7% due to a reduction in water demand and unpaid equitable shares. The Board had achieved a net surplus of R13,8 million. The maintenance expenditure went 1% over budget and capital expenditure amounted to R14,2 million.
Sedibeng noted that the maintenance of water quality was at Class 1, except for periodic colour, iron and manganese concentrations. Water quality could be improved to meet Class 1 standards at 95% of the time, but the cost implications would be enormous for consumers.
Customer satisfaction had been maintained through weekly interactions with ward committees and an improved response time and reduction of interruptions. This had led to a reduction in complaints. They also had a customer satisfaction monitoring system in place.
Sedibeng assisted in water and wastewater testing and analysis. They also had an HIV/AIDS awareness campaign and provided anti-retroviral treatment, which began in March 2005. Sedibeng was environmentally conscious in that there was a constant monitoring of discharges. Corporate social investments had amounted to R1, 5 million, and concentrated on food parcels, donations to schools and orphanages and learnerships.
Bloem Water Board
The Board provided bulk water services, and its primary focus was the implementation of projects on behalf of the Department of Water Affairs and Forestry, and relevant municipalities in Ukhahlamba District Municipality (Eastern Cape), and Mangaung Local Municipality (Free State). As implementing agents, they were responsible for the preparation of business plans, procurement of service providers, and ensuring implementation. Their role in service delivery consisted of providing access to water services, community participation and training and empowerment.
In the Botshabelo, Thaba Nchu and Mangaung municipalities, Bloem Water paid R6,1 million in local labour salaries and provided temporary jobs to 226 individuals per month. In the Herschel Rural Water Supply programme, total salaries paid to local labour amounted to R9, 84 million, while employing 132 individuals on average per month.
On the issue of training and empowerment, Bloem Water had paid R400 000 toward accredited training in the Botshabelo, Thaba Nchu and Mangaung districts. R34 million was paid to local emerging contractors. The Hershel Rural Water Supply programme provided on-site skills training to 9 504 labourers. Total training costs amounted to R500 000. Selected community members were also trained in pump station operation and maintenance.
Bushbuckridge Water Board
Bushbuckridge Water Board was established in 1997 in accordance with the Water Services Act, Act 108 of 1997. Their primary responsibility is the provision of bulk water services to other water service institutions. Busbuckridge currently operates in Bohlabela District Municipality, and parts of Mbombela Municipality area (serving approximately 1, 2 million people)
Bushbuckridge Water highlighted the following areas of services and some of the encountered challenges:
• The socio-economic profile of the service area is characterised as
rural small villages and dense villages with total population of 826
000 and 374 000 people, respectively.
• The present water supply systems comprise ground water, river schemes
and treated water supply.
• Service levels vary from village to village, from RDP house connection
with waterborne sanitation.
• The drought has intensified over the past 5 years, and this has
negatively affected both ground and surface water resources.
• Cost recovery for services rendered remains a huge challenge, and
therefore DWAF subsidies play a major role in sustaining water supply
to communities.
• Equitable distribution of available potable water is still a challenge
due to unauthorised connections, growing water demand, and capacity
constraints related to infrastructure.
The activities in achieving the 2008/10 targets in the development of infrastructure comprise the following:
• Refurbishment of boreholes (R20m) targeting a population of
approximately 250 000 people in the Bushbuckridge area.
• Upgrading of Hoxane water treatment works (62m) from 26 Ml/day in
order to reach the communities of Nsikazi North (200 000 people) and
parts of Bushbuckridge South (150 000 people).
• Construction of the 45 km transfer pipeline to convey treated water
from Inyaka works further north up to Acornhoek.
The activities in achieving the 2008/10 targets in operations, maintenance and distribution, comprise the following:
• Operations and maintenance are conducted such that production costs
are minimised while maximising quantity without compromising quality.
• The total average monthly volume of water produced and distributed to
the population of 1, 2 million people indicates a projected water use
of 100 litres/ca. per day. In reality, this is not the case, as BWB
developed equitable distribution plans for Nsikazi and Bushbuckridge
areas.
• The average monthly cost for Operations and Maintenance currently
stands at R2, 7 m.
The major threats/opportunities facing service delivery comprise the following:
• The incorporation of the Bushbuckridge area to Mpumalanga Province
will open up opportunities for BWB with regard to extending the
customer base.
• Poor recovery of costs for services rendered results in lack of
budgets to implement capital projects (refurbishment, realignment of
schemes for optimal use).
• The intensifying drought affecting surface and underground resources
leaves BWB with no option but to fast track the development of the
Inyaka and Hoxane Regional Schemes.
• Lack of guaranteed operational grants/subsidies relating to operation
and maintenance threatens service delivery.
• Delays in signing of water services provider agreements with water
services authorities impacts on service delivery.
Some recommendations highlighted by Bushbuckridge encompassed the following:
• Sustainability of water services hinges on effective and efficient
management of the services through optimisation of all resources to
minimise operating costs and loss while maintaining a good quality
product.
• Targets can only be achieved if all spheres of government cooperate in
the development of sustainable water services.
• The activities toward achieving the targets must be undertaken in an
integrated and sustainable manner so as not to deplete/degrade the
environment.
Rand Water Board Rand Water services the Gauteng, portions of the North-West, Mpumalanga and Free State Provinces. Rand Water has embarked on the following three- pronged strategy to attain service delivery in water and sanitation:
• Addressing backlogs in water and sanitation services in its area of
service and beyond.
Rand Water has embarked on a prorate that has the following objectives:
• Understand the inadequacy of water service provision in clearly
defined areas within and in areas that are in close proximity
to its areas of service. This means gathering data on the
following:
• Population numbers, household sizes, personal income
profiles and employment status – all derived from the
national census data.
• Status quo access to water and sanitation in terms of set
norms and standards.
• Municipal ability to extend coverage.
• Bulk infrastructure availability.
• Growth projections – population growth and demand growth.
• Assessment of Rand Water’s current ability to provide bulk
water services.
Once this information has been collected and analysed, Rand Water would have a scientific basis for making practical proposals on how it could, in the medium term, that is, over the next 3 – 4 years extend the coverage of water and sanitation services to all the people within, and in areas within close proximity to its areas of services.
• Working with DWAF in improving water and sanitation services to
municipalities in its areas of service.
Most municipalities within the areas of service do not comply with environmental standards for sewerage effluent discharges. The result is that raw sewerage is discharged into the environment. Examples are: Emalahleni, Maluti-aPhofung, Govan Mbeki, Emfuleni, Midvaal, Randfontien, Westonaria, Merufong Kungwini and Parys.
Common problems with these municipalities are sub-standard effluent quality, plant capacity and poor condition of treatment facilities, and little capacity to handle and dispose of sewerage. What is needed is an assessment of the treatment works to enable them to put an end to this environmental pollution. The total cost for undertaking this assessment is R2 million.
Of the municipalities that RWB approached, only Midvaal and Randfontein accepted assistance, and have since seen a significant improvement in the operation of their treatment works and in the training and development of their staff. Emfuleni has signed an interim service contract, which enables the municipality to comply with standards with the assistance of RWB. All other municipalities either do not have the funding to help them comply or have stated that they do not need assistance.
The key implication of discharging raw or untreated sewerage into the environment is that it directly influences the quality of raw water sources. The deterioration of water sources increases the cost of purification, which raises the end price of drinking water to consumers.
RWB raised the problems that municipalities have with accessing enough funds with which to acquire assistance to buy purification services from water boards, such as, Rand Water Board with DWAF. The response was to raise it with municipalities themselves as transfers/grants form National Government is inadequate, and does not allow WSAs to ensure good quality water in a sustainable manner to customers. In the absence of adequate funding, the cost of water will continue to become unaffordable and excessive.
• Working directly with municipalities to improve water and sanitation
service delivery. Municipalities have a shortage of skills in terms of unaccounted for water, implementation of upgrading and refurbishment projects, increased accessibility, improving payment levels and the reduction of unpaid water volumes. RWB has over the past few years approached municipalities to offer assistance in this regard. In spite of the success of collaborative efforts between RWB and municipalities, some municipalities still do not take advantage of the services that water boards offer them.
The following challenges were noted by Rand Water to provide clean and healthy water to all citizens:
• Municipalities are responsible for the delivery of water services to
communities. The problem is that they do not seem to be held
accountable. Little is done to rectify specific areas of non-delivery,
lack of capacity and funding.
• Water service providers should not be allowed to supply water to
people without testing it for its compliance to quality standards.
• The legislative framework within which water boards operate is an
obstacle. The recent conferring of the status of water service
authorities on municipalities has had unintended consequences.
Municipalities, have in general, used this authority to look at the
provision of water services in a selfish manner, thereby ignoring
regional provision and efficiency. Rand Water highlighted the Western
Highveld as an example – the current infrastructure is regional in
nature, which means that it provides water to the entire region.
However, individual municipalities in the region have convinced DWAF,
by virtue of their water service authority status, to carve this
structure up and transfer them to individual municipalities. Such
action can and will, in the long term, work against the sustainable
and equitable provision of water to the region. The danger is that
access to water will be severely impacted on. The current expansion by
ran Water of bulk infrastructure is left to continue as it is. It
appears as if DWAF itself is powerless to intervene and stop this ill-
informed transfer of assets. Authority without accountability can
never be good for improved service delivery.
Umgeni Water Board
Established in 1974, Umgeni Water is one of Africa’s most successful organisations involved in water management and the largest bulk water supplier in the province of KwaZulu-Natal, South Africa. It is one of the largest catchment-based water utility in Southern Africa, supplying some 340 000 kilolitres of clean, safe drinking water to almost 4.8 million people annually. Its main customers include eThekwini Metropolitan Municipality, Ilembe, Sisonke, Umgungundlovu and Ugu district municipalities, and the Msunduzi and Mngeni local municipalities, amongst others. Progress towards implementation within Umgeni Water’s area of operation
• Mgeni Regional Scheme – Comprises of a number of sub-components, viz.
A planning investigation into the proposed future infrastructure
requirements to upgrade the main spine has just been completed.
• The Umbumbulu Bulk Pipeline is currently being constructed.
• Pre-feasibility level planning of an extension of the Wartburg
Pipeline has commenced.
• Detailed feasibility planning of the Richmond pipeline is scheduled to
start in August.
• North Coast Regional Scheme - Detailed civil design is complete.
Servitude registration and the environmental assessments are currently
underway for the North Coast Bulk Pipeline.
• Mvoti Regional Scheme - Pre-feasibility level planning of this scheme
has recently commenced.
• South Coast Regional Scheme - Construction of the upper portion of the
South Coast Bulk Pipeline is scheduled to commence early next year.
Design and environmental assessments are currently underway.
• Mzintlava Regional Scheme - External consultants have recently been
appointed to undertake a reconnaissance level planning investigation
based on the conceptual scheme initially presented. This study will
also guide the configuration of the adjacent schemes.
• Mooi Regional Scheme - The pre-feasibility level planning
investigation of the Greater Nottingham Road area, which includes the
Mooi regional bulk pipeline to Msinga, has been completed.
The Umgeni Water Board has seen a profit turnaround from a R37 million loss to a R55 million profit. Revenue had increased by 11%. Cash flow from operations had increased by R125 million. Net debt had been reduced by R300 million. Umgeni Water was characterised by affordable tariffs and sound management principles to eliminate water backlogs.
By 2008, all local citizens within Umgeni’s area of service would have access to water. By 2010, sanitation would be available to all households. Umgeni will work toward linking water resources and water supply to provide sustainable water solutions.
Overberg Water Board
Overberg Water, compared to other organisations, is a small organisation and financially not in a position as bigger enterprises to bring about massive changes. However, Overberg plays a significant role in its region to ensure quality services. Overberg Water has the basic structural and systems infrastructure to provide quality services, and to play a supportive role. It operates high quality production plants, does quality control, distribution, maintenance, water conservation and demand management, and other direct services.
Although comprehensive agreements between the Water Authorities and Overberg Water need to be concluded as a matter of urgency, there is reluctance on the part of authorities to respond. One of the issues is that the Authorities only want short-term contracts, whereas Overberg Water requires long-term contracts to enable it to make financial investments.
The principle of institutional reform is of crucial concern to Water Boards, as they need clarity on their position in order to take the necessary steps to prepare for service delivery, which is not a short-term undertaking.
Botshelo Water Board
The Board operates and maintains reticulation systems under the jurisdiction of different Water Services Authorities. The Board also operates Sewage and Water Treatment Plants, which also fall outside its area of jurisdiction. Within the areas of jurisdiction, the Board is responsible for the maintenance of boreholes, in order to provide safe drinking water for consumers in rural areas. Retailing of water, including cost recovery is carried out in the following urban and rural areas, together with the operations and maintenance of their reticulation systems for the following areas of four municipalities:
• Ditsobotla: Ditsobtla Municipality/Central District
Municipality.
• Ganyesa: Bophirima District Council.
• Madikwe: Zeerust Local/Central District Municipality.
• Molopo: Mafikeng Local Municipality/Central
District
Municipality.
Asset management is undertaken through preventative maintenance system with the aid of computer software (PRAGMA SYSTEM). This has been the strength of Botshelo in maintaining its assets. This computerised system helps to effectively plan, monitor, control and report.
Botshelo supplies bulk water to two Water Service Authorities, which are Moses-Kotane Local Municipality. Within the Central District Municipality, Botshelo Water supplies directly to Ditsobotla Local Municipality and Mafikeng Local Municipality.
| Municipality | 2004/05 – million Kl | 2003/04 – million Kl |
| Mafikeng Local | ||
| Municipality | 12,213 | 12,535 |
| Ditsobtla | ||
| Municipality | 2,670 | 2,520 |
| Central District | ||
| Municipality | 0,130 | 0,013 |
Central District Municipality is supplied from Mafikeng and Mmabatho Water Works for its peri-urban areas around Mafikeng town, while Verdwaal in Itsoseng is supplied by Itsoseng bulk from local dolomite Aquifers. Mafikeng Local Municipality is supplied from both Mafikeng and Mmbatho Water Works. Ditsobotla Local Municipality is supplied from local dolomite Aquifers.
In terms of bulk assets, it is expected that all water treatment plants will be transferred from DWAF at no cost to Botshelo Water. An investigation into the conditions of the assets has been completed and submitted to DWAF. Botshelo Water is expected to take over the operations of the Upper Bulk Water Supply Scheme, from DWAF, which will reduce its dependence on subsidies.
Botshelo is committed to enter into municipal partnerships with water services authorities, and partnerships with other water services institutions in order to raise capital to develop large resources, and water services infrastructures in the region.
In terms of retail water sales, Botshelo Water supplied water directly to consumers in urban and rural areas. The distribution of these consumers in Botshelo Water’s area of jurisdiction is as follows: A sliding scale of tariffs has been applied in order to make water more affordable for the majority of consumers. This activity is subsidised by DWAF, to an amount of R34,632 m annually (paid monthly at R2,886 m). This subsidy contributes to the difference between the cost of supply to consumers and cost recovery effected from the consumers. Water for this activity is produced in Bulk Water Treatment Plants of Botshelo Water. Strict quality control measures are applied on a continuous basis to ensure that the highest water quality standards are met and maintained.
In terms of cost recovery, water loss and demand management, the following was noted:
• Cost recovery has been low due to a lack of infrastructure systems.
Statutory measures are taken on an ongoing basis to improve the
recovery rate. Illegal connections continue to impact adversely on
water loss management efforts. Most of the illegal connections have
been regularised, except in Dinokana and Driefontein. Amnesty
programmes have been developed and implemented in order to bring
illegal connections into the billing net.
• A major capital investment will be required to establish cost recovery
infrastructure in rural areas. Water process loss in Bulk Supply is
in the order of 2 – 10%.
• In the retail activity, water losses are in the order of 15% due to
unauthorised connections. Reticulation systems in certain areas are in
need of refurbishment/upgrading. The inadequate bulk source in
Lehurutshe still adversely affects cost recovery. Large infrastructure
investment plans will be more actively promoted in the next financial
year.
Lepelle Northern Water
The Board operates 8 purification plants in 5 WSAs in the Limpopo Province. The Board worked on a five-year planning cycle, which included security of supply during droughts. The board provided assistance and support to municipalities. Their financial position had been consolidated and the gearing levels had been reduced. Municipal debt remained a challenge. There had been no proper costing of the free basic water policy by municipalities.
The challenges highlighted by Lepelle incorporated the following:
• Authority function is often confused with provision function by
municipalities.
• Transfer of assets that take effect before finalisation of section 78
process.
• Insufficient water resources in certain areas.
• MIG funding policies a constraint to sustainability of schemes as
envisaged in SFFWS.
• No proper costing of FBW policy by municipalities.
• Administration of indigent policies is problematic.
• Municipal debt poses a challenge. General Comments on Water Boards emanating from presentations
• A disparity is noted in the manner in which Water Boards are managed,
operationally and financially.
• Some water boards assist in providing a transfer management service to
the Municipalities, for the transfer of assets and staff from the
Department of Water Affairs and Forestry.
• Major contributor to service in the sector.
• Mandate and promises around Millennium Development Goals (MDGs).
• Some areas in various provinces have 2 or 3 Water Boards operating in
one province. There appears to be a skewed distribution of the
quality of services offered as competing interests override the
fundamental objective, that is, of providing services to communities.
• Cost recovery in the retail environment is a big problem.
• Some Water Boards borrow substantial amounts of money from various
banking institutions, whilst others manage to work out strategies to
recover them.
• In terms of infrastructure, water boards did not talk of their
linkages to the Expanded Public Works Programme (EPWP) to facilitate
the process.
• Some water boards highlighted the transfer of DWAF personnel and
infrastructure.
• Some new water user associations have problems with staff shortage.
• Capacitating and skilling municipalities so that reticulation
services, amongst others, are efficiently taken over in the future.
• The quality of water in some regions was highlighted.
• Tariffs charged differ from province to province.
• The costing of free basic water provision is not sufficiently detailed
and therefore it can impact on the delivery of other water services.
• Over time, the competencies of some water boards in terms of its
overall function has shifted, not only focusing on bulk and retail
water but offering capacity and skills to municipalities and
communities.
• Cost recovery for services rendered remains a huge challenge, hence
DWAF subsidies play a major role in sustaining water supply to
communities.
• Equitable distribution of available potable water is still a challenge
due to unauthorised connections, growing water demand, and capacity
constraints related to infrastructure.
• Lack of guaranteed operational grants/subsidies relating to operation
and maintenance threatens service delivery.
• There are delays in the signing of water services provider agreements
with water services authorities.
• Payment of subsidies and equitable shares by Water Services
Authorities.
• A move toward partnering with other water boards or water utilities on
joint ventures to identify the most effective sanitation models and
processes. Joint task teams would be established to conduct research
and publish information regularly on findings.
• Catchment areas need to be assessed. Water boards in the context of
financial, technical systems, there is a major place at this point in
South Africa.
• Efficiency issues in catchment areas need to be examined.
- Water User Associations
Vaalharts Water User Association
The Vaalharts Water User Association was established in 2001. The Minister approved the constitution of the Water User Association and certain powers and duties in terms of the National Water Act have been delegated to the Vaalharts Water User Association.
The principle function of Vaalharts WUA is to supply bulk raw water in the most economical way, according to the lawful entitlement of all water users, within the borders of the operational area of the Association, with the least possible losses and disruptions. The Association does not supply purified water to any water user, but supplies raw water to Water Service Authorities such as municipalities. The Association does not supply any sanitation infrastructure or services. Irrigation water represents 96. 2% of the total amount of water supplied by the Association, and Industrial and Household water, 3.8%. This forms the basis of the Association’s income.
The infrastructure (irrigation canals, storm water drainage canals and appurtenant structures) is more than 60 years old and enormous amounts of monies are needed for maintenance and refurbishment. The infrastructure is well monitored to avoid disruptive failures, and to curb water losses as far as possible. The fragile financial well being of the Association is closely linked to the volatile agricultural environment from where its revenue comes from (96.2% of its water sales).
No major growth is expected within the borders of the Association’s area of operation, and henceforth growth in revenue will mainly be in raising the water tariff. This, on the other hand, can only be done if it is affordable to the water users.
Great Fish River Water User Association (Eastern Cape)
The functions to be performed by the Association in its area of operation are:
• To prevent water from any water resource and/or waterworks being wasted. • To protect water resources and/or waterworks. • To prevent any unlawful water use. • To remove or arrange to remove any obstruction unlawfully placed in a watercourse and/or waterworks. • To prevent any unlawful act likely to reduce the quality of water in any water resource. • To exercise general supervision over water resources and/or waterworks.
The duties of the WUA are as follows:
• To comply with the National Water Act. • Collect water rates and pay over to DWAF. • Administration/Financial service to sub-areas. • Take action against default players. • Make inputs regarding water tariffs.
The area of operation consists of 32 624. 9 hectares, which is divided into 17 Sub-Areas. The WUA distributes water via each Sub-Area to approximately 330 commercial farmers. The Water tariffs in sub-areas comprise R270.00 – R690.00 per hectare per year. Payable to DWAF: R15.6 million per year. The Sub-Areas Tariffs comprise R50.00 – R130.00 hectares per year.
Some of the problems experienced by the WUA are:
• The payment of water and sub-areas tariffs. Most of the ‘emerging’ black commercial farmers experience lack of funds. At this point, the WUA pays DWAF on behalf of some farmers, and the WUA recovers the outstanding rates at a later stage when funds become available. • Some farmers do not have the experience to farm an irrigation farm. Training in irrigation farming is a necessity. • It is important that government/DWAF assist those farmers with the rates in subsidies. • Although DWAF has a scheme for the subsidisation of the DWAF component of the water tariff, the actual process to access this has not been spelt out, which in reality means that there are no subsidies. The Historically Disadvantaged Individual farmers in this jurisdiction are thus billed for their full quota of water, whether they use it or not. In normal circumstances, unpaid bills are handed over to lawyers for collection. This, however, could spell economic disaster for a new HDI farmer trying to break even in a highly competitive market. The WUA tries to sell off the unused amounts of water of the HDI farmers to the bigger commercial farmers, and this alleviates the financial burden of the newcomer. Some of the challenges experienced by the WUA are:
• To see that there is a high level of payment for water. • To see that water is used more effectively. • To keep any increase in raw water pricing to a minimum. • To upgrade canal systems. • To encourage farmers to get basic domestic water to the staff residing on their farms, and also provide sanitation facilities and electricity where such basics are not in place.
Some of the achievements highlighted by the WUA are:
• The WUA was the first irrigation board to be transformed into a WUA in the Eastern Cape. • Although the process followed to transform in terms of the National Water Act complied with the guidelines used at that stage, the WUA is of the opinion that the revised guidelines are far more advanced in promoting true democratisation and empowerment for the transformation process. • The WUA sees the compilation of a Business Plan as a means to advance democratisation and empowerment issues not covered in detail in their Constitution. The WUA has already put a tremendous amount of work into compiling the Business Plan as this has some far-reaching intentions regarding democratisation, empowerment and the encouragement of the settling of resource-poor farmers of previously disadvantaged race groups on irrigation farms served by this WUA. WUAs have been informed that DWAF may be employing a Professional Service Provider to help in the compilation of the Business Plans.
Letaba Water User Association
The Association’s management committee comprised 14 members, representing irrigators in all three of the zones of the association. Irrigation entitlements consisted of 12, 989 million cubic metres from the Ebenezer Dam, and 105, 028 million cubic metres from the Tzaneen Dam. These entitlements were available to new entrants for irrigation agriculture, but most of these entitlements were under utilised. If land claims were to be settled and the entitlements purchased by the state, the figure could rise to 70%. Previously disadvantaged persons had access to a sizeable percentage of irrigation entitlements and this was bound to grow.
The total annual entitlements were 168, 500 million cubic metres, of the three major dams in the area by 50 million cubic metres per annum. Following requests during 1983, the Department of Water Affairs and Forestry undertook a major study for a fourth major dam in the area – the Nwamitwa Dam. The water this proposed dam would impound could result in an additional 53 million metres of assured draft, which would eliminate the current shortfall. The Water User Association was concentrating on stabilising the supply of water to all farmers by relentlessly promoting the building of the Nwamitwa Dam.
Kakamas Water User Association
Kakamas has as its water users the local authority, emerging farmers, and irrigation, domestic, industrial, environmental and recreational users. Their management committee comprise 15 members.
The Association is a bulk water supplier and did not supply purified water or any sanitation infrastructure.
Orange-Riet Water User Association
Orange-Riet is a multi sectorial Water User Association in the Free State. The Association supplies water users in their management area. Only bulk water is supplied to municipalities, therefore the WUA is not responsible for sanitation service.
However, development of new areas for emergent farmers are high on the priority for Orange-Riet, and the availability of water for 3 000 hectares from the Orange River in the Free State can be utilised very economically and productively to help eliminate and uplift people in the Orange Riet management area.
The Association supplied water to five towns, small-scale farmers, industries and diamond diggers. A telemetry system, use of satellite images and minimum payment of 85% reduced losses. Water saved through water conservation and demand management is used for emerging farmers. The management committee comprised 17 members, of which 3 are female.
Impala Water User Association
In terms of section 98(4) of the National Water Act, Act 36 of 1998, existing Irrigation Boards must transform into Water User Associations. The Impala Water User Association (Impala) was established on 12 January 2001.
The area of operation of Impala includes the catchment of the Bivane river from the inflow into the Bivane Dam and the balance of the catchment of the Pongola River, within the boundaries of South Africa, from the Upper Pongola Weir situated on the farm Bendor 211 HT on the north bank and the farm Verdruk 26 on the south bank, both inclusive, downstream to and including the farm Sunland 72HU on the north bank and the farm Klipfontein 740 on the south bank.
Impala may also operate in any other water resource situated outside the area mentioned above. This may happen if Impala is asked to provide water resource to accompanying areas which DWAF or the responsible authority may require the Association to control, situated in the water management area number 6 in the KZN and Mpumlanga provinces.
The purpose and functions of Impala can be summarised as follows:
• The distribution of water to farmers, industrial use, a municipality
and other smaller users from its source, the Pongola and Bivane
Rivers.
• The monitoring and protection of the water resource and environment in
its area of operation.
• The maintenance and upgrading of the water distribution system and
works.
• The monitoring and control of the volume of water flowing into and out
of the area of responsibility and water use.
• The implementation of an effective administrative system and functions
in order to manage its affairs, and the changing and collecting of
water use charges from legitimate water users.
Apart from the normal execution of its primary functions as outlined above, the following additional areas are also addressed to achieve the objectives of the organisation:
• Institutional development through building relationships with various
stakeholders, work opportunities and sub-contractor optimisation.
• The taking up and execution of ancillary functions in terms of
catchment management activities, such as:
• Resource protection.
• Erosion control.
• Alien plant control.
• Water quality monitoring.
• Pollution prevention.
The challenges noted by Impala were the following:
• The construction of Bivane Dam. • The settlement of emerging farmers. • Water supply to the rural areas.
Central Breede River Water User Association
One of the principal objectives of the Association was to regulate the distribution and division of raw water in the Breede River. The municipality of Worcester discharged wastewater into the Breede River. The resultant pollutant affected all water users.
Although the Association had wanted to implement initiatives like the Water Allocation Reform programme to help previously disadvantaged beginner farmers, bureaucracy had hampered progress and the affected public were frustrated.
General Comments on Water User Associations from Presentations
The upkeep of infrastructure by the WUAs is emerging as a problem and needs addressing.
It emerged from the hearings that there are tensions between water boards, water user associations and municipalities. It often relates to WUAs proposing to strengthen service delivery, which often cannot be accommodated by municipalities due to problems. In some instances, some WUAs show no sign of transformation. They do not actively deal with the task of including the previously disadvantaged in their associations. The presenters stated that legislation and regulations prevented them from including people other than farmers in their associations. This problem must be highlighted.
Those who own land perceive themselves as having strong rights to water usage than those who do not own land. This issue presents a challenge to DWAF as sector leader.
DWAF has to deal with the transformation of WUAs. A key question on the issue of WUAs: What was the thinking behind setting up WUAs? Are WUAs living out the mandate that the Act states if they are only looking after the interests of big users?
It seems as if the devolution of powers to local associations and governments can have unintended consequences. While the intention is good and consistent with empowering people to democratically participate in structures, the outcome is often unfortunately one in which the poorest of the poor remain marginalised. In terms of its functions, associations usually regulate the distribution and division of water. In some cases, WUA point out the problems encountered in environmental pollution of water, but the problem persists.
There are also disparities in the manner in which Water User Associations operate, which is defined by the nature of jurisdiction. In some cases, some WUA’s provide raw water to irrigation farmers and purified water to all households and people within the respective areas.
Some WUA’s argue that although they have attempted to assist emergent farmers with water supplies, the process is rather slow in attaining this.
The growing demand for water for waterborne sanitation will impact on the future of water user associations in terms of maintenance and operations of infrastructure.
The role of water user associations’ with emergent farmers needs in-depth studies to ensure the sustainability of this process.
Land claims issues have an impact on the role and functions of the WUA’s.
Section 7: Inter-Governmental Cooperation
7.1 South African Local Government Association (SALGA)
• SALGA continues to play a key role in supporting municipalities to
achieve the targets set out in the Strategic Framework of Water
Services.
• A major focus is to ensure that water and sanitation support is
properly targeted to municipal needs as well as addressing the
• In terms of challenges, SALGA pointed out that sanitation remains the
biggest challenge in water service delivery.
Challenges - Sanitation
• Whilst municipalities are addressing sanitation at household level,
special attention must be paid to sanitation on farms, informal
settlements and bucket eradication.
• The former DWAF subsidy did not help much towards bucket eradication
were waterborne was being sought as an alternative.
Critical Issues – Water Services Provider Support
• In terms of water services provider support, much support has been
given by DWAF in initiating and leading excellent support programmes,
such as WSPD support, section 78 support, MIG support, institutional
support, support to putting policies and bylaws in place. The most
pressing need is to support the service provision function, ensuring
good operations and maintenance, water quality management, revenue
collection, WSP business planning, asset management and customer
relations.
• A clear support strategy for water services providers is needed. Achieving the water and sanitation targets, SALGA noted the following:
• Questions have been raised about the feasibility of achieving the
water and sanitation targets for 2008 and 2010, respectively.
• These targets are not only the responsibility of local government, but
also the responsibility of the entire sector.
• Realistic plans are needed for each municipality to determine what can
or cannot be achieved within the target timeframes.
• Political decisions are needed in terms of those municipalities that
will not be able to meet the targets within existing conditions
(municipality capacity, water services challenges, current resources,
etc.)
• A crucial question asked by SALGA was: will the targets be changed or
will national and provincial government be coming forward with
contingency plans?
Consolidated Support Targeted to Real Needs
• Consolidation of support across sectors remains a challenge.
• Whilst Project Consolidate has various outputs, it aims to achieve, a
plan needs to be consolidating sector support from the provincial
level to municipalities.
• Many instruments are still being used to assess municipal capacity.
However, these instruments are generic- need to study the results of
these assessments to build the capacity they need.
• Institutional building and capacity building requires resources and
funding. Access to such resources needs to be facilitated to speed up
sustainable local government.
More detail is needed on the role of SALGA in building capacity at municipalities.
Section 3: Reflections and Recommendations
Reflections on the Annual Report in Relation to Presentations and DWAF’s New Role as Sector Leader
In terms of the above inputs, and DWAF’s new role as sector leader in the water area, it does not necessarily mean that the expertise and guidance of DWAF has to be completely invisible. The following issues, emanating from the presentations were noted:
• Representivity in the transformation of the water users’ associations
and boards were of particular concern.
• Disparities were noted between the management and financing of water
boards.
• There were varying service delivery and the provision of free basic
water, particularly due to inadequate infrastructure in less
advantaged areas.
• The need to bring together dispersed skills and fragmented
organisations into a coherent water sector.
• The Catchment Management Agencies are still lagging behind.
• Whilst some boards had borrowed money from various institutions,
others had managed to develop coping strategies.
• Capacity had been a much-discussed issue, particularly by
municipalities.
• Quality of water was a matter of concern.
• Cost recovery had also been a frequently discussed topic.
• The equitable distribution of drinkable water had often been mentioned
in many reports.
• Water services agreements were another area that had frequently been
discussed, especially the role of tariffs, municipalities and water
boards.
• On the issue of associations, most discussions related to:
• The functions, regulations, distribution and allocation of
water.
• The growing demand for water and waterborne sanitation and the
impact of this on the water user association.
• The operation, maintenance and the infrastructure needed by
water user associations to effectively supply basic services.
• The impact of land, land claims affected the way in which water
boards are composed. This is an area that needed further study
as the land and water issues were indivisible.
Comments
As sector leader, DWAF can still play a role on the issue of water boards borrowing substantial amounts of money from outside financial institutions. This relates to cost recovery, and the involvement of private financial institutions in public service delivery. It is perhaps an important period for DWAF to engage with the private sector on its role in service delivery.
On the issue of diversity of tariffs, and within a developmental context, the ‘water retail environment’ cannot cause further hardship for the poor. DWAF, as sector leader needs to indicate how it plans to play a regulatory role in this regard.
DWAF stated that regulation happens at 2 levels – DWAF and municipalities regulate. This begs the following questions:
- Who monitors and regulates nationally?
- Does the Department ensure that municipal regulations conform to nationally stated guidelines as the sector leader?
- What evaluation and monitoring tools has DWAF initiated to address the above?
The Annual Report and DWAF’s responses to the above at the hearings were inadequate. Oversight visits provided a picture of municipalities not following an integrated approach as they do not view the process of delivery as one that demands interaction with national, regional levels, as well as one that requires co-operation with different departments (Health, Education, Public Works and Housing, etc.) to ensure quality services to the people.
The 2005 Annual Report was not very forward-looking. It does not deal with the challenges experienced and alternative solutions to encountered problems. DWAF states its new role as sector leaders, but the Annual Report does not speak of what the role means in the current context. It stresses the fact that DWAF is no longer the service provider, but does not highlight the enormous challenges involved in shifting to playing that role.
Recommendations
The following recommendations from the members of the Portfolio Committee and presentations emerged at the 3-day public hearings:
Financial Issues
• The Portfolio Committee requires DWAF to provide it with quarterly
reports dealing with the following:
• The role of DWAF as sector leader in rectifying the problems of
asset and inventory management as identified by the Auditor-General.
Specifically, DWAF needs to state the plans to:
• Strengthen stock counts at regional offices.
• Sort out its ledger card system.
• Verify its assets.
• Ensure that all assets are bar-coded. • The role of DWAF in putting in place an appropriate, documented and
approved policy and procedure framework that would strengthen the
weaknesses noted in the AG’s comments on internal control. These deal
specifically with the undefined basis on which allocations of
transactions were made to the Water Trading Account that resulted in
uncertainty regarding the accurate allocation of expenses incurred on
behalf of this account.
DWAF’s Ongoing Role in the Water Sector
• SALGA emphasised the important role that DWAF played in building
institutional capacity for water services, and argued strongly that
this role should continue.
• Particularly challenging is building provision capacity.
• Integrated management will need to tackle sectoral agencies protecting
their traditional roles and responsibilities, as well as the problems
of overlapping or conflicting legal mandates and responsibilities.
The limited array of senior and powerful advocates for the concept of
IWRM make it difficult to alter the well-entrenched existing water
governance systems, which tend to reflect sectoral approaches.
• Collaboration across the water sector was a major problem. While the
Water Summits were supposedly held to bring together stakeholders to
work out proposals to improve relationships, it is clear from the
hearings that the relationship between water boards and municipalities
are fraught with tension. DWAF needs to address these problems
strategically.
• As water-related services are extended to promote public health and
food production, uncoordinated institutions can be confusing and lead
to water resources depletion. It is equally alarming that in many
countries, a large number of water supply and sanitation projects and
water management policies continue to be developed in isolation from
each other.
• Effective water governance requires change in attitudes and behaviour
among individuals, institutions, professionals, decision-makers – in
short, among all involved. Participation by the public or stakeholders
is an important tool in implementing such changes as it facilitates
more informal decision-making and eases conflict resolution. It can
also guarantee that voices of relatively powerless groups, such as
women and indigenous people, are heard. Participation offers people
the opportunity to meet their responsibilities, as well as the
opportunity to claim their rights.
• Key aspects of sustainability include empowerment of local people,
self-reliance and social justice. These reflect concern about
principles of equity, accountability and transparency. One way to
incorporate these principles into real-life management is to move away
from conventional forms of water governance, which have usually been
dominated by a top-down approach, and professional experts in the
government and the private sector, and move towards the bottom-up
approach, which combines the experience, knowledge and understanding
of various local groups and people.
Transformation of Water User Associations and Boards
• Transformation in WUAs: Link the issue of transformation in Water Boards and Water user Associations as the necessary foundation for policy goals to be reached. An urgent look at how boards and associations represent the interests of all people need to be undertaken. • Link the issue of transformation of WBs and WUAs as the necessary foundation for policy goals to be reached. • Water Service Providers (WSP) support requires a new approach to what was used to build WSA capacity. • The provision function is about managing a water services business where we provide services to our communities – services that meet their needs. • The provision function has to be sustainable – it requires ongoing business planning, measures to ensure compliance with standards, mechanisms for customer satisfaction, plans for improvement, and has to be financially viable. • Experience in running good water services provider’s lies within some municipalities and water boards – how does one harness this experience into our support initiatives? • There is currently a gap in support provided – it does not extend sufficiently to water services providers.
Municipalities as Water Service Providers
• Municipalities that are WSPs are best placed to determine the nature
and targets of WSP support.
• Municipalities with expertise and experience in the WSP functions need
to shape the WSP Support Strategy.
• Although the Constitution provides municipalities with the authority
to be water user authorities who regulate. A strong recommendation is
that this be discussed in a joint Portfolio Committee meeting with the
Department of Provincial and Local Government (DPLG) and DWAF to
discuss the Intergovernmental Relations Framework. This meeting can
discuss issues of what it means to be a regulator, where intervention
can take place and where not.
• It has been recommended that the challenges faced by municipalities
and other stakeholders, be addressed by the formation of steering
committees between regional DWAF, WUAs, municipalities and SAWU. These
steering committees would then address the problem. It is important
that DWAF updates the Portfolio committee in its quarterly reports,
regarding these attempts.
• Municipality capacity remains a challenge for many municipalities.
• Pressures on local government to both extend services and ensure
sustainable service delivery. This requires sustainable institutions
that have adequate human resources, skills and expertise, as well as
the necessary systems in place.
Transferral of Schemes by DWAF
• The schemes transferred by DWAF need to comply with water quality
standards.
• There is a shortfall in the rehabilitation funding and this impacts on
the rehabilitation of the schemes.
• After Care Transfer processes are inadequate and this impedes service
delivery.
Five categories, according to the United Nations Department of Economic and Social Affairs publication, Governing Water Wisely for Sustainable Development, deserve special attention:
• Water resource assessment: comprising data collection networks,
environmental impact assessment techniques and risk management tools,
for example, for floods and droughts.
• Communication and information: raising awareness is often a potent
instrument for improving management, particularly when accompanied by
opportunities for informed stakeholder participation.
• Tools for water allocation and conflict resolution: allocation could
be done through a mix of regulatory and market instruments based on
valuation of costs and benefits; and conflict resolution tools could
provide guidance on issues of upstream versus downstream, sector
versus sector and human versus nature.
• Regulatory instruments: including direct controls such as land use
plans and utility regulation, as well as economic instruments (prices,
tariffs, subsidies and others) and encouragement of self-regulation,
for example, by transparent benchmarking.
• Technology: both new and traditional technologies might provide scope
for progress, within the water sector as well as in others that affect
water demand. References
Substantive input by the Portfolio Committee on Water Affairs and Forestry at the Public Hearings, 12 – 14 October 2005
Department of Water Affairs and Forestry, Annual Report 2005
The Estimate of National Expenditure Actual Expenditure (2004/05) and the Budget Allocation (MTEF 2005/06 – 2007/08) amount for the Department of Water Affairs and Forestry (DWAF)
Presentations made at the Public Hearings:
• Department of Water Affairs and Forestry
• Amatola Water Board
• Bloem Water Board
• Mhlathuze Water Board
• Bushbuckridge Water Board
• Magalies Water Board
• Rand Water Board
• Botshelo Water Board
• Trans-Caledon Tunnel Authority (TCTA)
• Great Fish River Water User Association
• South African Local Government Association
• Overberg Water board
• Central Breede River Water User Association
• Umgeni Water Board
• Lepelle Northern Water Board
• Vaalharts Water User Association
• Impala Water User Association
• Kakamas Water User Association
• Orange-Riet Water User Association
TUESDAY, 13 DECEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Bills passed by Houses – to be submitted to President for assent
(1) Bills passed by National Assembly on 13 December 2005:
i) National Credit Bill [B 18D – 2005] (National Assembly – sec
76)
ii) Education Laws Amendment Bill [B 23D – 2005] (National
Assembly – sec 76).
(2) Bills passed by National Council of Provinces on 13 December
2005:
i) Electronic Communications Bill [B 9B – 2005] (introduced as
Convergence Bill [B 9 – 2005] (National Assembly – sec 75)
ii) Diamonds Amendment Bill [B 27B – 2005] (Reintroduced)]
(National Assembly – sec 75)
iii) Diamonds Second Amendment Bill [B 39B – 2005] (National
Assembly – sec 76)
National Assembly
The Speaker
-
Messages from National Council of Provinces to National Assembly in respect of Bills passed by Council and transmitted to Assembly:
1) Message from National Council of Provinces to National Assembly
Bills, subject to proposed amendments, passed by National Council of Provinces on 13 December 2005 and transmitted for consideration of Council’s proposed amendments:
i) Children’s Bill [B 70B – 2003] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 7 December 2005, p 3102) The Bill has been referred to the Portfolio Committee on Social Development of the National Assembly for a report on the amendments proposed by the Council. ii) Independent Communications Authority of South Africa Amendment Bill [B 32B – 2005] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 23 November 2005, p 3066) The Bill has been referred to the Portfolio Committee on Communications of the National Assembly for a report on the amendments proposed by the Council. iii) Precious Metals Bill [B 30B – 2005] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 14 November 2005, p 2755) The Bill has been referred to the Portfolio Committee on Minerals and Energy of the National Assembly for a report on the amendments proposed by the Council. iv) Nursing Bill [B 26B – 2005] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 7 December 2005, p 3101) The Bill has been referred to the Portfolio Committee on Health of the National Assembly for a report on the amendments proposed by the Council.
TABLINGS
National Assembly and National Council of Provinces
- The Speaker and the Chairperson
(a) Report and Financial Statements of Vote 2 – Parliament of
the Republic of South Africa for 2004-2005, including the
Report of the Auditor-General on the Financial Statements of
Vote 2 for 2004-2005.
-
The Minister of Trade and Industry
a) Report and Financial Statements of the Companies and Intellectual Property Registration Office (CIPRO) for 2004-2005, including the Report of the Auditor-General on the Financial Statements for 2004- 2005.
-
The Minister for Public Enterprises
a) Report and Financial Statements of the South African Forestry Company Limited (SAFCOL) for the year ended 30 June 2005, including the Report of the Independent Auditors on the Financial Statements for the year ended 30 June 2005.
b) Report and Financial Statements of Alexkor Limited for the 9 months period ended 31 March 2005, including the Report of the Independent Auditors on the Financial Statements for the 9 months period ended 31 March 2005.
-
The Minister of Water Affairs and Forestry
(a) Report and Financial Statements of Botshelo Water for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 30 June
2005.
b) Report and Financial Statements of Bushbuck Ridge Water for the
year ended 30 June 2005.
c) Report and Financial Statements of Albany Coast Water for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 2005.
d) Report and Financial Statements of Amatola Water for the year ended
30 June 2005, including the Report of the Independent Auditors on
the Financial Statements for the year ended 30 June 2005.
e) Report and Financial Statements of Lepelle Northern Water for the
year ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 30 June
2005.
f) Report and Financial Statements of Mhlathuze Water for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 30 June
2005.
g) Report and Financial Statements of Namaqua Water Board for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 2005.
h) Report and Financial Statements of Overberg Water for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 30 June
2005.
i) Report and Financial Statements of the Pelladrift Water Board for
the year ended 30 June 2005, including the Report of the
Independent Auditors on the Financial Statements for the year ended
30 June 2005.
j) Report and Financial Statements of Rand Water for the year ended 30
June 2005, including the Report of the Independent Auditors on the
Financial Statements for the year ended 30 June 2005.
k) Report and Financial Statements of Sedibeng Water for the year
ended 30 June 2005, including the Report of the Independent
Auditors on the Financial Statements for the year ended 30 June
2005.
l) Report and Financial Statements of Umgeni Water for the year ended
30 June 2005, including the Report of the Independent Auditors on
the Financial Statements for the year ended 30 June 2005.
National Assembly
-
The Speaker
a) Letter from the Minister of Public Enterprises dated 22 November 2005 to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Reports of South African Forestry Company Limited (SAFCOL), Alexkor and Denel for 2004-2005:
Late Tabling of Annual Financial Statements of Safcol, Alexkor and Denel to Parliament
1. The letter dated 18 October 2005 from the Acting Speaker, GQM Doidge, MP has reference. 2. In terms of section 55(1)(d) of the Public Finance Management Act, 1999 (hereafter called “PFMA”), Alexkor, Denel and Safcol are required to submit their annual financial statements and annual report within five months of the end of a financial year, to National Treasury, to the Executive Authority responsible for the SOE as well as to the Auditor- General. 3. Safcol’s financial year-end is currently 30 June 2005. Therefore Safcol is still in compliance with the required timelines prescribed by the PFMA regarding submission to Executive Authority. The Statements should be delivered to the Department Parliamentary Office before the end of November whereafter it will be prepared for submission to Parliament for distribution to the Members of Parliament. 4. The delay in the submission of Denel’s AFS was due to the concern raised by the auditors on the issue of a material irregularity in terms of Section 20(5) of the Public Accountants and Auditors Act, 1991, regarding the solvency of Denel. This matter delayed the auditing process, and was only resolved upon receipt of a letter from the Minister of Finance, dated 29 July 2005 concurring with the issuance of a guarantee in the amount of R 765 million by the Minister of Public Enterprises. The Statement should be delivered to the Departmental Parliamentary Office before the end of November whereafter it will be submitted to Parliament for distribution to the Members of Parliament. 5. The delay in the submission of Alexkor’s AFS was due because of difficulty in determining the exact figure for Alexkor’s Environmental Liability, which had to be reflected in the AFS. Alexkor has indicated that they have sent their AFS to the printers in October 2005, but could not give a certain date by which these would be submitted to the Parliamentary Office in Cape Town. It has however been communicated to Alexkor that they deliver 550 copies of its AFS to the Parliamentary Office by 30 November 2005. 6. I trust you will find the above in order. Yours Sincerely Alec Erwin, MP Minister of Public Enterprises
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Minerals and Energy on the Precious Metals Bill [B 30B - 2005] (National Assembly - sec 75), dated 13 December 2005:
The Portfolio Committee on Minerals and Energy, having considered the Precious Metals Bill [B 30B - 2005] (National Assembly - sec 75) and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 14 November 2005, p 2755), referred to the Committee, reports the Bill with amendments [B 30C - 2005].
Report to be considered.
-
Report of the Portfolio Committee on Health on the Nursing Bill [B 26B – 2005 (Reprint)] (National Assembly – sec 75), dated 13 December 2005:
The Portfolio Committee on Health, having considered the Nursing Bill [B 26B – 2005 (Reprint)] and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 07 December 2005, p 3101), referred to the committee, reports the Bill with an amendment [B 26C – 2005].
Report to be considered.
-
Report of the Portfolio Committee on Social Development on the Children’s Bill [B 70B – 2003] (National Assembly – sec 75), dated 13 December 2005:
The Portfolio Committee on Social Development, having considered the Children’s Bill [B 70B – 2003] and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 07 December 2005, p 3102), referred to the committee, reports the Bill with amendments [B 70C – 2003].
Report to be considered.
-
Report of the Portfolio Committee on Communications on the Independent Communications Authority of South Africa Amendment Bill [B 32B – 2005] (National Assembly – sec 75), dated 13 December 2005:
The Portfolio Committee on Communications, having considered the Independent Communications Authority of South Africa Amendment Bill [B 32B – 2005] and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 23 November 2005, p 3066), referred to the committee, reports the Bill with amendments [B 32C – 2005].