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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
KEYNOTE ADDRESS BY HON. MEC MOKONE COLLEN MAINE
ON OCCASION OF BUDGET VOTE ADDRESS 2014/15
FOR DEPARTMENT OF LOCAL GOVERNMENT AND HUMAN SETTLEMENTS
N.W. PROVINCIAL LEGISLATURE, MAHIKENG, 20.08.14
HON SPEAKER OF THE NORTH WEST PROVINCIAL LEGISLATURE
HON PREMIER OF THE NORTH WEST PROVINCIAL GOVERNMENT
HON MEMBERS IN THE EXECUTIVE COUNCIL
HON MEMBERS OF THE NORTH WEST PROVINCIAL LEGISLATURE
EXECUTIVE MAYORS AND MAYORS
SPEAKERS OF MUNICIPALITIES
COUNCILLORS PRESENT HERE
MAGOSI A RONA A A TLOTLEGANG
HEAD OF DEPARTMENT OF LOCAL GOVERNMENT AND HUMAN SETTLEMENTS
MUNICIPAL MANAGERS AND MUNICIPAL OFFICIALS
EXECUTIVES FROM BUSINESS FRATERNITY
MANAGERS OF PUBLIC ENTITIES
NGOs, FBOs AND OTHER SOCIAL PARTNERS
GOVERNMENT OFFICIALS
CITIZENS OF THE NORTH WEST PROVINCE
DISTINGUISHED GUESTS
Motlotlegi Mmusa-Kgotla, re neelana ka Tekanyetso-Kabo, ya ngwaga wa matlole wa, 2014/15
ya Lefapha la Dipuso Selegae le Bodudi jwa Baagi. Re dira se, morago ga tshekatsheko-sesha le
momagano ya lefapha, go arabela ponelopele ya Puso ya Bokone Bophirima, mo go atlaanyeng
ditirelo tsa tswelelopele ya dipuso selegae le bodudi jwa baagi.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
This step-in-the-right-direction, is proving to be a strategic paradigm shift from the provision of
housing, to sustainable and integrated human settlements, with transformed developmental
local governance, where an intense and increased ward-based planning approach, has been
adopted.
The logic behind this integration of services, is in response to National Outcomes 8, 9 and 12,
which commits government to deliver on sustainable human settlements and improved quality
of household life; to be a responsive, accountable, effective and efficient developmental local
government system; as well as create an efficient, effective and development-orientated public
service with an empowered, fair and inclusive citizenship.
Motlotlegi Mmusakgotla, re neelana ka Tekanyetso-kabo, re faraferwe ke dikgwetlo le
boitumelo, mo diphitlhelelong tseo re nnileng le tsona, magareng ga mananeo tswelelopele a
Puso Selegae le Bodudi jwa Baagi.
LOCAL GOVERNMENT
The Auditor General did not
give much of an impressive
audit opinion, on the state
of our municipalities, in his
2012/2013 Audit Report.
In this Auditor General’s
Report, only 4
municipalities have
received unqualified audit
opinion with matters of
emphasis. These are
Bojanala Platinum District Municipality as well as Moses Kotane, Naledi and Tlokwe Local
Municipalities. 5 municipalities have received a qualified opinion. These are Dr Ruth Segomotsi
Mompati and Dr Kenneth Kaunda District Municipalities as well as Ratlou, Rustenburg and
Madibeng Local Municipalities.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
Madam Speaker, 14 municipalities have been disclaimed for the 2012/2013 financial year.Go
tlile go nna botlhokwa thata gore Lefapha le atamelane le Dimasepala tse somelebone tse.
We are concerned, Madam Speaker, that, no clean audit opinion has been received in the
province. The Auditor General noted the reasons for this poor audit opinion on our
municipalities as;
- Non-compliance to legislation
- Poor quality of annual performance reports
- Poor quality of annual financial statements
- Poor information technology controls with no improvement
- Excessive use of consultants with no skills transfer
- Lack of consequences for poor performance and transgressions, such as Councils not taking
action
- Key positions vacant or key officials lacking appropriate competencies
- And slow response by political leadership and management, in addressing the root causes of poor
audit outcomes.
Madam Speaker, in our effort to deal with these poor audit outcomes in our municipalities, we
are inspired and driven to action by interventions package announced by the Honourable
Premier during the State of the Province Address. This package of interventions, which we will
seriously commit to, includes;
Clearing all debts owed to municipalities by the end of the next financial year
Strengthening the North West Premier’s Coordinating Council to ensure better planning alignment
between the province and municipalities
Playing a key role in the setting up of a Provincial Infrastructure Coordinating Council, chaired by
the Honourable Premier, to integrate all public sector spending on infrastructure in the Province
Implementation of the clean audit targets and the Auditor General’s recommendations being built
into the performance management contracts, of all municipal managers and other senior
management officials
A comprehensive province-wide skills audit being conducted, across all municipalities, as an
intervention, to finally deal with over-reliance on consultants by municipalities
Ensuring that all Ward Councillors in the Province, hold at least one monthly community meeting,
in their wards, to report on service delivery matters
And, ensuring that all cities, towns and villages are kept clean.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
As we seek a new way of doing things, Frantz Fanon reminds us that it will not be an easy road,
when he writes from his book, “Black Skin, White Masks” that, as I quote;
“Sometimes people hold a core belief that is very strong. When they are presented with
evidence that works against that belief, the new evidence cannot be accepted. It would create a
feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so
important to protect the core belief, they will rationalize, ignore and even deny anything that
doesn't fit in with the core belief.” Close Quote.
Having been made aware of the challenges that we will face, as we seek to turn the North West
Province into a construction site, underpinned by the Saamtrek-Saamwerk Philosophy, the late
Dr. Nelson Mandela reminds us in the 1975 Letter to Winnie Mandela, from Robben Island,
when he writes as I quote;
“Difficulties break some men, but make others. No axe is sharp enough to cut the soul of a
sinner who keeps on trying, one armed with the hope that he will rise in the end.”
Close Quote.
LOCAL GOVERNANCE PROGRAMME
Madam Speaker, the Department has
developed simplified revenue enhancement
plans and we will monitor and support
implementation, with a focus on data
cleansing, debt collection and credit control.
The identified municipalities are Mafikeng,
LekwaTeemane, Naledi, Ventersdorp, Tswaing,
Matlosana, Maquassi Hills, Kgetleng,
Madibeng, Ramotshere Moilwa, Ditsobotla and Moretele Local Municipalities. These are
municipalities identified for high levels of consumer debt, amongst other challenges.
All 19 Local Municipalities will be supported with processes of Municipal Property Rates Act, as
part of the implementation of new generation valuation rolls.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
We will further intensify support to all municipalities, for improved audit outcomes, that will go
some way in realising clean audit objectives, in compliance with MFMA Section 131.
Resuscitating the Provincial Operation Clean Audit structure will be part of this support. We will
foster the implementation of proper records and information management systems, in
municipalities, as well as strengthening Municipal Public Accounts Committees. In this regard, a
partnership has been entered into with the Department of Arts, Culture and Traditional Affairs,
on records management support. Basic records keeping and electronic document management
system, in Kagisano Molopo Local Municipality, is currently underway, spearheaded by
SizweNtsalubaGobodo, at no cost to the department or the municipality.
The department is assessing the Audit Action Plans and Performance Agreements of senior
managers, across municipalities, to establish if all issues raised by the Auditor General have
been addressed and incorporated, with view to strengthening good governance, public
participation and sound administration.
A skills audit programme is being conducted, to establish skills gaps in Municipal Managers and
senior managers’ posts, to make an assessment of whether the right people are appointed in
the appropriate positions. Action will be taken on cases where councils have appointed senior
managers in contravention with the Municipal Systems Amendment Act and regulations. Re tla
tshwanela ke go atamelana!
Enforcement of policies, by-laws and forensic investigations are to be conducted in Ngaka
Modiri Molema District Municipality as well as Matlosana, Tswaing, Maquassi Hills, Mahikeng and
Ditsobotla Local Municipalities. These forensic investigations are implemented in terms of
Section 106 of the Municipal Systems Act on allegations of fraud, maladministration and
corruption.
Madam Speaker, the department will visit every local municipality to verify if community
meetings take place on a monthly basis, as pronounced by the Honourable Premier in the State
of the Province address. A memo has been issued to municipalities to comply with this directive.
Municipal performance monitoring, reporting and evaluation will be improved through
Performance Management Systems and ICT enhancement, further responding to the challenges
raised by the Auditor General.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
The Department will strengthen and coordinate Inter Governmental Relations structures,
through integrating Local Government and Human Settlements forums to derive maximum
benefits.
Madam Speaker, for the achievement of the above to be realized, the spirit of unqualified love
and commitment to the province, will have to drive all of us to heed the call by the Honourable
Premier, for the Rebranding, Repositioning and Renewal of the North West Province. In
unpacking this concept, the Honourable Premier said, during his maiden State of the Province
Address, as I quote;
“The call to rebrand, reposition and renew our province is a thorough-going philosophical
construct that can only succeed through popular citizen engagement. It calls on the people of
this province not to act in any manner or do anything that harms the good name of our
province. It seeks to unleash our collective potential, to achieve the greatness this province
deserves, and embrace opportunities presented by the new spirit of unity, reconciliation and
healing”
Close Quote.
Municipal Performance Monitoring, Reporting, Evaluation & Support
The Department has successfully piloted the Local Government Management Improvement
Model in the (7) seven municipalities. This model and assessment tool, focuses primarily on
management practices and institutional capabilities.
The Department further developed and gazetted the Municipal Planning and Reporting Tool, to
ensure alignment of budget and IDP, through Service Delivery and Budget Implementation Plan
(SDBIP). The tool provides for uniform planning and reporting, taking into consideration the
requirements of the revised IDP Framework and MFMA Circular 63, which is the new Annual
Report Template.
The tool will be gazetted this financial year, for clear implementation date envisaged for
2016/17 financial year. The tool is envisaged to be automated and piloted in eight municipalities
during 2014/15 financial year. The eight municipalities include all the four District Municipalities
and B1 category municipalities, which are Madibeng, Rustenburg, Tlokwe and Matlosana Local
Municipalities.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
Public participation and Customer care
The Department provided various support to municipalities, towards the functionality of ward
committees, in the previous financial year. The Provincial Ward Committees Coordinating Forum
managed to continue providing necessary support and assistance to all municipalities, in order
to ensure functional and effective ward committees.
Ward committees and ward councillors’ of 18 local municipalities were work-shopped on the
development of Ward Committees’ Annual Operational Plans.
IGR structures and coordination
The MUNIMEC forum meetings will take place at least once a quarter, to allow the department
and municipalities to engage regularly on planned interventions and support programs, as well
as to assess progress made on local government programmes.
DEVELOPMENT PLANNING
Local Economic Development
Madam Speaker, we embarked on a process
to form partnership with University of
Johannesburg on LED Training. Councillors
and officials in Bojanala Platinum District
Municipality as well as Mamusa, Tswaing,
Madibeng, Rustenburg and Moses Kotane
Local Municipalities, were provided with
studies on Local Economic Development Leadership.
Madam Speaker, as at December 2013, fifteen thousand, seven hundred and three (15 703)
jobs were created across 13 local municipalities, through the Community Work Programme. This
non-state sector within EPWP, participates in different wards to support food gardens, Early
Childhood Development, school support programme, waste management and infrastructure
development.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
Disaster Management
10 sector departments were
supported to develop their Section
38, Level 2, Disaster Management
Plans. The Department
strengthened the integrated
institutional capacity for disaster
management at provincial level
and a fully functional Provincial
Disaster Management Advisory
Forum was established.
In line with the Disaster
Management Act, EXCO approved the construction of the Provincial Disaster Management
Centre, which will be utilized for facilitating and coordinating the planning for and response to
disasters.
The construction of this Center, in Mahikeng, to the amount of R15million, will be ongoing in
this financial year. This project will take the duration of 18 months.
A workshop on the development of the Fire Brigade Services White Paper and Bill was hosted.
We have also supported the Department of Agriculture, Forestry and Fisheries on the
establishment of Fire Protection Associations.
5 municipalities will be supported with fire fighting vehicles and equipment. R2.1million will be
allocated to Mamusa Local Municipality, seven hundred thousand rand (R700 000.00) to Naledi
Local Municipality and R4.2 million to Ngaka Modiri Molema District Municipality for purchasing
of fire engines.
For disaster management support, Ngaka Modiri Molema District Municiaplity will be allocated
the amount of three hundred and twenty five thousand rand (R325 000.00) and Dr Ruth
Segomotsi Mompati District Municipality, Dr Kenneth Kaunda District Municipality as well as
Bojanala Platinum District Municipality, will each receive the amount of six hundred and twenty
five thousand rand (R625 000.00).
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
Municipal Infrastructure Grant
A financial-year annual average, of 300 Municipal Infrastructure Grant projects, has been
implemented throughout the province, for the past 5 years, with the MIG funding. The fund has
covered different categories of infrastructure for basic households’ services in terms of water,
sanitation, municipal roads, sports, community lighting and others. We sadly note that capacity
challenges in planning, contribute significantly to failure by some of our municipalities to spend
on their MIG allocations.
Madam Speaker, the Department will render support to five local municipalities, on the
implementation of Spatial Planning and Land Use Management Act. Chapter 6 of the Act obliges
us to provide technical capacity support and streamline institutional arrangements with
Municipal Planning Tribunal.
The Department will, in this financial year, facilitate and provide support for Local Economic
Development and job creation for 23 municipalities. Thirteen thousand, five hundred (13 500)
job opportunities will be created in 13 municipalities, through the Community Work Programme.
Support will be given to all 23 municipalities, with the development of revised Integrated
Development Plans. We will support and monitor 19 local municipalities, with the provision of
infrastructure and access to basic services. On social infrastructure development; internal roads,
community halls, cemeteries and sports facilities will be built through Municipal Infrastructure
Grant and the Provincial Infrastructure Grant will be channeled towards water, sanitation,
energy and waste management in all 19 local municipalities.
In this regard, seventy three million, one hundred and twenty thousand rand (R73 120m) has
been allocated to Ngaka Modiri Molema for Khunotshwane Water Reticulation and Dinokana
Bulk Water Supply, in Ramotshere Moiloa, as well as Upgrading and Rehabilitation of internal
roads in Mahikeng.
R22million will be provided to Dr Ruth Segomotsi Mompati for Kagisano Molopo Rural Sanitation
and Bloemhof Ext 10 Rural Sanitation, in Lekwa Teemane Local Municipality.
R16,5 million has been allocated for Makapanstad Bulk Water Supply and Madibeng Rural
Sanitation, in Bojanala Platinum District Municipality.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
A further R8million has been allocated for Boskuil feasibility study in the Dr Kenneth Kaunda
District Municipality. The total cost of these projects is one hundred and forty one million, six
hundred and twenty thousand rand (R141 620 000.00)
This work will be implemented through our new approach of strategic Ward-Based planning
mode, whose outcome orientated approach is built on seven pillars, that;
1. Good Governance is Accountable
Madam Speaker, in this regard we assert that accountability is a fundamental requirement of
good governance. A municipality has an obligation to report, explain and be answerable for the
consequences of decisions it has made on behalf of the community it represents.
2. Good Governance is Transparent
People should be able to understand the decision-making process. This means that they will be
able to clearly see how and why a decision was made and what information, advice and
consultation Council considered and which legislative requirements did Council follow.
3. Good Governance follows the Rule of Law
This means that decisions must be consistent with relevant legislation and should be within the
powers of Council.
4. Good Governance is Responsive
Madam Speaker, logic dictates, in this instance, that municipalities should always try to serve
the needs of the entire community while balancing competing interests in a timely, appropriate
and responsive manner.
5. Good Governance is Equitable and Inclusive
A community’s wellbeing, results from all its members feeling that their interests have been
considered by Council in the decision-making process. This means that all groups, particularly
the most vulnerable, should have opportunities to participate in the decision making process.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
6. Good Governance is Effective and Efficient
In this regard, municipalities should implement decisions and follow processes that make the
best use of available resources and time, to ensure the best possible results for the community.
And;
7. Good Governance is Participatory
Anyone affected by or interested in a decision, should have the opportunity to participate in the process
for making that decision.
HUMAN SETTLEMENTS
Madam Speaker, the Freedom Charter, which is the bedrock of policy formulation for our
government, commits that; There shall be Houses, Security and Comfort.
This noble goal will not be
achieved, if we are not guided
by the National Development
Plan, when it notes, within the
2030 Vision of Building a
Capable State, that; if we are
to address the twin challenges
of poverty and inequality, a
state is needed that is capable
of playing a transformative and developmental role. This requires well run and effectively
coordinated state institutions, staffed by skilled public servants, who are committed to the
public good and capable of delivering consistently high quality services, for all South Africans,
while prioritising the nation’s developmental objectives.
We are adamant that local government and human settlements are at the cold-face of this vision.
We welcome the unqualified audit opinion for the 2012/13 and 2013/14 Audit Report, for the Human
Settlements component. Comparatively, the number of exceptions raised is lesser than those in the
previous financial years, as performance has been on a steady improvement.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
Housing Delivery Challenges
Madam Speaker, we currently are beset with a huge number of blocked projects across the
province. The main reason for these blocked projects emanates from the transfer of trench
payments to municipalities. The Department is going to be resolute in dealing with blocked
projects due to shoddy work, abandoned foundation slaps where houses were supposed to be
built, failure to adhere to timeframes and other misgivings. Contractors who are found to be in
the wrong will be blacklisted.
In the next financial year, a significant portion of the budget will be utilised to unblock all the
projects by the end of the following financial year.
Informal Settlement Upgrading
Madam Speaker, we said 6 188 housing units, with access to clean water and decent sanitation
and provision of tenure to the beneficiaries must be achieved, to bring comfort to our people in
the in informal settlements, and to this end, we have built 4 538 units.
In the face of these challenges, Madam Speaker, we reassert that no axe is sharp enough to
cut our soul, for we are that sinner, who keeps on trying, armed with the hope that we will rise
in the end.
Women Empowerment
We have successfully created an opportunity for women empowerment in construction and
building industry, in the form of training, through National Home Builders Registration Council.
During 2012/13 and 2013/14 financial years, women emerging contractors were trained in
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
bricklaying, plastering and laying of the foundation. The training modules also included Business
Management, Project Management, Tendering Process and Quantity Management.
We are proud that this women empowerment commitment, led the province to be honoured
with Best Women Award at Govan Mbeki Awards Ceremony, held at Sandton, on the 14th
August 2014. We congratulate Sun Success Construction Company for making us proud, with
this award, as the people of Bokone Bophirima, women in particular. This is a living proof that,
we are on the right track.
The Manifesto of the ANC for the Fifth Administration, gives clarity on sustainable human
settlements, when it commits us to ensure that all South Africans live in decent conditions, in
suitable human settlements.
In compliance to legislative obligations and mandate of the Manifesto, 30% of Human
Settlements Development Grant will be allocated to youth, women and people with disabilities.
Contractors who will receive projects from the Department will further be required to ensure
that 30% of benefits from these projects are directed at youth, women and people with
disabilities. In our continued celebration of the 1956 Women’s March to the Union Buildings,
one thousand, nine hundred and fifty six (1 956) housing units will be dedicated to women in
August.
Youth
In our commitment to building capacity in the built environment, across our municipalities,
through an inclusive programme of scholarships, training and housing consumer education; well
performing Grade 12 learners were identified, interviewed and sent to Institutions of Higher
Learning, to study in the built environment qualifications. To date, 24 students have been
capacitated and 12 are placed within the Province.
HOUSING DEVELOPMENT PROGRAMME
Madam Speaker, we have heard the cries and the plight of our communities in the form of
service delivery protests in Rooigrond, Majakaneng, Ottoshoop, Lebaleng, Bloemhof and other
areas. In Rooigrond, the contractor is already on site for township establishment, installation of
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
services and the provision of 1000 housing units. In Ottoshoop, geotechnical and dolomite
stability investigations have been concluded, wherein we commit to deliver 207 housing units
during this financial year. And in Lebaleng, the sewer spillage experienced, has been attended
to.
The core beliefs that have proven to be dysfunctional, Madam Speaker, will have to give way
for tangible initiatives to thrive, as we continue, unshaken, in the journey to Reposition,
Rebrand and Renew (RRR) the North West Province.
Our contribution to the Manifesto goal, of providing one million housing opportunities for
qualifying households in urban and rural settlements over the next five years, will see the
Department availing fourteen thousand, six hundred and fifty (14 650) housing opportunities,
which include housing units and service stands, amongst others, in this financial year.
Our plan to achieve the above is as follows;
One hundred and eighty five (185) units planned for Military Veterans, will be undertaken in the
2014/2015 financial year, in partnership with the Department of Military Veterans.
Tlokwe N12 Development will be embarked upon as an integrated development that caters for
different housing needs, including social amenities. It is important to note that this is Public
Private Partnership (PPP) between the Department, Tlokwe City Council and ABSA.
As part of our contribution to addressing the historical capitalistic disregard for living conditions
of mineworkers, three thousand, four
hundred and sixty two (3 462)
housing units will be constructed
around mining towns, in this financial
year.
The department has concluded
successful partnerships with the
Lonmin, Hernic Ferro Chrome and
Anglo Platinum Mines to achieve this
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
goal. The Lonmin Mine donated 50ha of serviced land for human settlements development
programmes. This is a densification project, meant to address challenges of informal
settlements within Rustenburg.
In the Sunway Village Integrated
Mixed Development, construction of
1000 units is underway and it will be
completed during this financial year.
The Marikana Extension 2 Integrated
Development project, is implemented
in partnership with LONMIN and
Rustenburg Local Municipality and it
will yield over 2000 housing units over
a period of three years. Initial phases of 292 Breaking New Ground housing units and 252
Community Residential Units are planned for this financial year and already contractors are on
site as we speak.
We will further give a priority to Matlosana, during the mid-term budget review, in line with the
directive from President Jacob Zuma, on human settlements interventions in mining towns.
Madam Speaker, there is a commitment to eradicate the backlog of title deeds in the ANC
Manifesto for the current administration. In this regard, the Department will transfer six
thousand, nine hundred and thirty two (6 932) title deeds to household owners, across the
province, in this financial year.
Six thousand, eight hundred and eighty eight (6 888) housing units will be constructed in this
financial year for Informal Settlement Upgrading. One thousand, eight hundred and eighty
seven (1 887) units will be unblocked and a further 300 Community Residential Units will be
constructed.
In response to the call to work with financial institutions, private sector organisations, co-
operatives and social partners, to increase the provision of capital for housing, 400 approvals
for Finance Linked Individual Subsidy Programme will be ensured.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
North West Housing Corporation
Given the challenges of housing and proper settlement of our people, EXCO has taken a
conscious decision to reverse the winding down of the North West Housing Corporation
(NWHC).
Following the pronouncement by the Premier, during the State of the Province Address, on the
rewinding of the NWHC, a task team has been established to conceptualize the form and status
which the corporation should take, as to whether it will be a housing agency or entity. It is
envisaged that it will be used as an alternative housing programme to expedite housing
delivery, particularly on Social Housing and Finance Linked Individual Subsidy Programme.
Fifteen million Rand (R15m) has been set aside for functionality of the North West Housing
Corporation in this maiden financial year of its up-scaling.
As part of sustaining the functionality of the North West Housing Corporation, we undertake to
recoup all the debts that are due to the Corporation.
Motlotlegi Mmusakgotla, ga go tle go itirelwa jaaka go ratwa. Ditlamo tsa kago tseo di
ngamileng ka disuga, kgatlhanong le North West Housing Corporation, di tla tshwanelwa ke
gore di atamelane le rona.
Building of New Cities
In response to the Honourable Premier’s call for the building of new cities and towns, priority
will be given to Mahikeng and Taung in the next two years. Further to the creation of new
cities, lobbying will be engaged upon to turn Rustenburg and Dr Kenneth Kaunda into Metro
Municipalities.
As part of Rebranding, Repositioning and Renewal (RRR) of the North West Province, urban and
rural housing will be given a new face lift, with regard to the new specifications for low cost
housing.
In this instance a low cost house in a rural area will have;
A minimum floor area of 45 square meters with 2 bedrooms, kitchen, living / dining area, bath
space and smooth internal floor finish. The windows will be of sizes D522 which is 2000mm
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
width x 1 540mm height, D 54 which is 1 511mm width x 1 540mm height, C4 which is 1
511mm width x 949 mm height and E2 which is 1 022mm width x 654mm height.
The bricks will be of face brick with internal plaster and maxi brick with plaster & paint, for both
internal and external. There will be basic electrical installation with at least 1 light in each room,
2 lights in the combined kitchen / living area, electric plug in each bedroom and 2 Plugs in the
kitchen / living room. All internal doors will be installed and external doors will be combination
doors.
Roofing will be of chromadek roof sheet; with minimum thickness 0.5mm and ceiling will be
installed for the whole house. Further supplied and installed will be aprons and 1000L water
tanks & gutters.
The cost to this house is currently valued at one hundred and nine thousand, nine hundred and
forty seven Rand (R 109 947. 00).
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
And for urban housing, the minimum floor area will be 45 square meters with 2 bedrooms,
kitchen, living / dining area, bath, hand basin, toilet and internal water recycling system with
smooth internal floor finish. The windows will also be of D522, D54, C4 and E2 in size.
The bricks will be of face brick with internal plaster, maxi brick with plaster and paint for both
internal and external and there will be basic electrical installation with at least 1 light in each
room, 2 lights in the combined kitchen / living area, electric plug in each bedroom and 2 plugs
in the kitchen / living room.
All internal doors will be installed with external doors as combination doors. Roofing will be of
chromadek roof sheet with minimum thickness 0.5mm. There will be installation of ceiling for
the whole house, aprons, gutters and conveyance.
This house is currently valued at one hundred and ten thousand, nine hundred and forty seven
Rand (R 110 947. 00)
We will work in collaboration with Mafikeng Local Municipality, to ensure that we achieve the
objectives of the Mahikeng Rebranding, Repositioning and Renewal Programme, on matters
that relate to the Department. We maintain that through this cooperation, basic things will have
to be done, to maintain the principles of good governance through sound provision of water,
sanitation and other community services.
HOUSING NEEDS RESEARCH, PLANNING AND TECHNICAL SERVICES PROGRAMME
Madam Speaker, we are going to investigate the impact of housing delivery on the lives of
beneficiaries, in order to determine how they have been affected and further assess whether
the concept of Integrated Human Settlements has been achieved by the Department. 2 major
socio-economic impact assessments will be conducted at Setlagole, Ward 14 of Ratlou Local
Municipality and at Coligny, Ward 16 of Ditsobotla Local Municipality.
As our province is dominated by farming communities, we are going to investigate farm workers
housing needs and review progress made in terms of how the realization of the right to
housing, has been extended to farm workers, by the Department.
Housing Sector Plans of 11 local municipalities in the Province will be reviewed, assessed and
analysed during this financial year. The Housing Sector Plan is a chapter which is integrated into
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
the Municipal Integrated Development Plan, and gives focus to housing development in the
municipal areas in a more effective, coherent and sustainable manner. These plans provide
effective linkages between spatial development framework and project locations.
Housing Needs Register
Madam Speaker, the Housing Needs Register was set out by National Department of Human
Settlements and further re-emphasised by Minister Lindiwe Sisulu during her Budget Vote
Address. It is an initiative to do away with the current system of waiting lists, which have
proven to be ineffective and inefficient in terms of implementing projects, because mere
estimates tend to impact on the accuracy of figures on the housing needs.
Software, in this instance, has been developed and the Province is currently engaged with
municipalities in getting this process to finality. The local municipalities in Bojanala are on the
verge of utilising the system, as the district was a pilot area. We have further established and
rolled out the Housing Needs Register to Dr. Kenneth Kaunda, Ngaka Modiri Molema and Dr.
Ruth Segomotsi Mompati Districts, in this financial year.
The database will be centralised to deal with the current manipulation in the system.
Land Acquisitions
Madam Speaker, we welcome the pronouncement made by Minister Gugule Nkwinti, in an
attempt to resolve the historic elephant in the room, the land question. In response to his
pronouncement, we said we are going to purchase pockets of land in Madibeng Local
Municipality and Ditsobotla Local Municipality. To this end, 107 Ha of land was purchased at
R4,4 million for Ditsobotla, at Rietvly plot No. 70 and 39,5 Ha of land was purchased for
Madibeng, at Bokfontein, for a figure of R7,6 million. At Marikana, we purchased 207 Ha of land
at Rooikoppies, for a figure of R47,1 million.
In the current financial year, R40m has been set aside for this purpose.
Reconfigured Department
Madam Speaker, given the challenges we have faced in the past, which we have duly
elaborated upon, we maintain that the reconfiguration of developmental local government and
sustainable human settlements could not have come at a better time. Beyond streamlining of
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
services, this developmental process offers a unique opportunity, to share expertise on
improving performance management systems and strategic leadership, which are necessary for
the achievement of development goals, which this new department has been assigned.
Furthermore, advantages that will be derived from the merger include centralised planning,
seamless and speedy implementation of projects, a joint and reconfigured organizational
structure, enhanced quality control and improved, coordinated and responsive service delivery.
CONCLUSION
Madam Speaker, as we embark on an exciting journey into the future, our visionary emphasis is
on Outcomes, rather than mere Outputs. The 2014/15 Annual Performance Plan of the
Department has set baseline for outcomes-measured delivery, with Greater emphasis on
location, density and integration with infrastructure and amenities.
Financial viability and good governance in municipalities, is of utmost priority. More focus will be
on supporting municipalities with issues of compliance and access to basic services. The
Department will further ensure alignment with the National Development Plan, Vision 2030. The
Medium Term Strategic Framework will be utilized to guide planning and resource allocation
across all the three spheres of government.
The Department spent One billion, three hundred and forty-two million Rand (R1, 342billion) of
conditional grant for the human settlement component in the financial year 2013/14, registering
100 percent spending of the allocated amount. In our fight against the unlawful act of sale or
lease of low cost houses, the Special Investigation Unit recovered an amount of Nine hundred
and four thousand Rand (R904 000.00) from housing beneficiaries who were found to be
committing this offense. These fines form part of the Departmental Revenue for the 2013/14
financial year.
Madam Speaker, during the State of the Nation Address on the 17th of June 2014, Honourable
President Jacob Zuma made an observation that, as I quote;
“South Africa is a much better place to live in than it was in 1994, and the lives of millions of
our people have improved. However, as the National Development Plan and the Presidency
Twenty Year Review highlight, the triple challenges of poverty, inequality and unemployment
continue to affect the lives of many people. As we enter the second phase of our transition from
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
apartheid to a national democratic society, we have to embark on radical socio-economic
transformation to push back the triple challenges. Change will not come about without some
far-reaching interventions.”
Close Quote.
It is against the letter and spirit of this vision, from the state President, that the Department of
Local Government and Human Settlements, embraces the new way of doing things, to realize
the goals of rebranding, repositioning and renewal of the North West Province as underpinned
by ideals in the philosophical construct of Saamtrek-Saamwerk, as we turn the North West
province, into a progressive construction site and desirable model for municipal governance.
Madam Speaker, we must emphasis, that as part of new ways of doing things, we remain
committed as a Department to explore and implement alternative technology in near future to
some of our projects in pursuit of working towards green environment. We also want to
accelerate people housing process (PHP) as part of our national programme to encourage our
communities to build houses for themselves, no longer depending on contractors to build them
houses. The process itself will add value in encouraging self-reliance to our people.
Madam Speaker, as part of encouraging good governance and acknowledging good performing
municipalities in the province; in the next financial year, we are going to convene Annual
Awards Ceremonies in various disciplines looking into the best performing municipalities in
terms of compliance to the legislations and its cleanliness. And of course, the Annual Provincial
Govern Mbeki Awards will continue as usual acknowledging our best performing contractors.
Madam Speaker, as we approach our conclusion, we want to make a clarion call to all our big
contractors to buy material in the province where possible to boost our economic spin-offs and
work closely with emerging contractors to ensure that their CIDB grading improves to sustain
growth of their companies.
We take this opportunity to thank the Portfolio Committee for their continued support and the
Honourable Premier together with colleagues in EXCO for the inspired vision that informs our
work. We appreciate all the valuable contributions from our partners in social delivery.
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
TABLING
Madam Speaker, the Department of Local Government and Human Settlements, tables before
this August House, 2014/2015 Budget Vote xx for the Department of Local Government and
Human Settlements for consideration.
LOCAL GOVERNMENT AND HUMAN SETTLEMENTS
2014/15 Departmental
Allocation Receipts
R‘000 Amounts in words
Equitable Share 503,049 Five Hundred and Three million, Forty Nine
Thousand Rand
Conditional Grant 1,519,136 One Billion, Five Hundred and Nineteen
Million, One Hundred and Thirty Six
Thousand Rand
Departmental Receipts 1,150 One Million, One Hundred and Fifty
Thousand Rand
TOTAL 2,023,335 Two Billion, Twenty Three Million,
Three Hundred and Thirty Five
Thousand Rand
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
2014/15 Departmental
Allocation Per Programme
R‘000 Amounts in words
Administration 107,864 One Hundred and Seven Million, Eight
Hundred and Sixty Four Thousand Rand
Local Governance 48,308 Forty Eight Million, Three Hundred and
Eight Thousand Rand
Development and Planning 239,340 Two Hundred and Thirty Nine Million, Three
Hundred and Forty Thousand Rand
Housing Needs, Planning and
Research
63,235 Sixty Three Million, Two Hundred and
Thirty Five Thousand Rand
Housing Development 1,564,588 One Billion, Five Hundred and Sixty Four
Million, Five Hundred and Eighty Eight
Thousand Rand
TOTAL 2,023,335 Two Billion, Twenty Three Million,
Three Hundred and Thirty Five
Thousand Rand
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BUDGET SPEECH 2014 DEPARTMENT OF LOCAL GOVERNMENT & HUMAN SETTLEMENTS
2014/15 Departmental
Allocation Per Economic
Classification
R‘000 Amounts in words
Compensation of Employees 181,455 One Hundred and Eighty One Million, Four
Hundred and Fifty Five Thousand Rand
Goods and Services 77,913 Seventy Seven Million, Nine Hundred and
Thirteen Thousand Rand
Transfer Payments 1,747,019 One Billion, Seven Hundred and Forty
Seven Million, Nineteen Thousand Rand
Machinery and Equipment 16,948 Sixteen Million, Nine Hundred and Forty
Eight Thousand Rand
TOTAL 2,023,335 Two Billion, Twenty Three Million,
Three Hundred and Thirty Five
Thousand Rand