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Madam Speaker and honourable members, my speech this morning will deal with the Constitution, Masakhane, local government transformation, municipal infrastructure and traditional leadership. I will comment on other matters in my policy debate in the NCOP next week.

THE CONSTITUTION

The hype about a two-thirds majority in Parliament is an attempt to instil fear in the white electorate. It is being suggested that the majority party will be able to, and indeed will, somehow overthrow the cornerstones of the Constitution. Are these claims well founded, or is it that the rooi gevaar and swart gevaar of the past has now become a two-thirds gevaar?

Our Constitution deserves a serious, sober, principled, and courageous discussion.

Let us begin by putting the wild and incomprehensible claim that a two-thirds majority in parliament would, or even could, dilute the democratic content of the Constitution, to rest.

In the first place, the fundamentals of the Constitution do not require a two-thirds majority for amendment, in fact, they require a 75 % majority! The fundamental values of the Constitution are human dignity; equality; advancement of human rights; non-sexism; supremacy of the Constitution; the right to vote; regular elections; and a multi-party system. Some of us refer to these values as the unamendables of the Constitution. In making the 75 % requirement, the Constitutional Assembly was virtually saying to future parliaments: "Thou shall not pass any amendment which conflict with these values"; and "Thou shall not change these values". The next time NP and DP leaders peddle their two-thirds gevaar, I hope that they will state the whole truth.

And in the second place, it must be made absolutely clear that it is neither the government nor the ANC that has called for a dilution or reduction of human rights, it is precisely the DP and NP that have in recent times called for a reduction in human rights. They constantly call for the frontiers of liberty to be reduced. So who is it that poses 'n gevaar to citizens?

The Constitution is the basic law of the country, it limits the legislative authority of parliament, it regulates various matters and it lays down rules for the conduct of government, the judiciary, and of citizens.

Importantly, however, our Constitution is more than just a kind of a super statute, more than just a legal instrument, and certainly more than just a mere rulebook. It is our collective manifesto and a programme of action - one that sets the framework for government policy and an agenda for South African society. It is also the most important instrument for the transformation from an unjust to a just and humane society. It both compels and enables change. The socio-economic rights direct us to not only political but also social equality. Through its provisions on language, culture, religion and the need for representativeness, it lays a firm basis for nation building and an approach to the national question. Some would say that the Constitution is the soul of our nation. It is, indeed, not a coincidence that Thabo Mbeki's seminal speech, "I am an African", was delivered on the occasion of the adoption of the new Constitution by the Constitutional Assembly.

There are, of course, elements of the Constitution and Constitution-related questions, which call for an ongoing discourse in society. Because of the special status of the Constitution a discourse must be approached with care, but at the same time with courage, and in the spirit of openness.

The Constitution grants rights and imposes duties on citizens. It grants rights to all in a bold and unambiguous manner. This was no doubt influenced by the denial of human rights under apartheid and colonial rule. It can be argued that the Constitution does not impose duties on citizens in as bold and unambiguous a manner. Thus we see every willingness on the part of some citizens to claim rights but a reluctance to perform duties. Some of these constitutional obligations could be the duty of every citizen to report the knowledge of a crime; a particularly duty to report corruption; perhaps even the duty of every citizen to register as a voter; and, as is the case some countries, the duty to vote.

I am on record as being in favour of the provincial system and in favour of the present extent of provincial powers. While the overall measure of provincial powers need not be altered, the detailed distribution of functions between provincial and national government begs for a close examination. It is no secret that the present arrangement was a product of give and take at the negotiating table - a product of the art of the possible. We owe it to ourselves that the distribution of functions is closely and thoroughly examined, this time in a rational and dispassionate manner, taking into account the requirements of good governance and administrative and financial efficiency.

Our Constitutional Court enjoys respect in society as a result of prescripts of the Constitution and also as a result of its own impeccable conduct. The court does not in a literal sense determine the contents of the Constitution, but it certainly plays an important role in the unfolding determination of the South African constitutional order. It is here that we need a discussion on the extent to which, and the manner in which, the founding values in section 1(d) of the Constitution, "accountability" and "responsiveness" - apply to the court. The question of accountability and responsiveness in relation to individual judges of other courts, has in recent times, presented itself as a rather urgent matter. We must, of course, rule out any suggestion that the Constitutional Court must submit to the general mood ebb and flow, or, the flavour of the month in the popular media.

On a more practical note, a discussion has taken place more recently on who should have the power to determine the election date. The Constitution grants the President the power to determine the date for parliamentary elections, but it grants each of the nine premiers the power to determine dates for each of the nine provincial legislatures. So, in theory, the national and provincial elections could be set over 10 different days! The resultant financial implications for the taxpayer and political parties, and the security and logistical complications, let alone the cost to commerce and industry, cannot be justified in the name of some notion of provincial autonomy. As is now well known, the parties in parliament have not been able to agree on this matter - but the question does not disappear.

Major changes to the Constitution must be a product of a long gestation period. No Constitution which is worth the paper it is written on must be such that it bends to accommodate the almost daily mood swings of some populist politicians.

MASAKHANE

One of the most heartening things over the last four years has been the manner in which the Masakhane campaign has captured the imagination of the South African public, and the extent of support it has received from all sectors of society and each and every political party.

At the heart of Masakhane is the importance of civic education - re-educating our nation about what it means to be good citizens and challenging our people about being aware of and taking part in what their Government is doing to ensure a better life for all. At the same time this campaign is inseparable from Government's commitment to economic growth, sustainable development and all-round transformation. With this framework in mind, the campaign seeks to challenge not only individuals to build together our rainbow nation, but also corporate citizens, such as business, and community-based organisations.

Clearly a campaign with such a high moral ground cannot only be confined to the payment of services at municipal level - important though this is. The manner in which we conduct ourselves in daily life, how we deal with the education of our children, the combating of crime in our communities and he reconstruction of the moral fibre of our society and many other endeavours of enhancing the lives of our people, constitute an expression of our new patriotism.

The public reviews of the recent Masakhane focus week convince me that the Masakahane campaign must remain a key campaign of government to rally our people in strengthening our new democracy.

LOCAL GOVERNMENT TRANSFORMATION

One of centrepieces of our new democracy is undoubtedly the emerging local government system. Local government services are at the heart of people's concerns about a better way of life. Water and electricity for rural households can free rural women from the drudgery of gathering firewood and walking miles to the nearest river. Proper lighting and community policing can similarly release women in cities and townships from the terror of rape and violence. Poverty, as we all know, is not just about unemployment and low wages - it is also quite crucially about the lack of services, or grossly inadequate levels of service, that local government can provide.

This is why both the Constitution and the work of my department puts so much emphasis on establishing developmental local government - local government that is not about cutting gross verges in wealthy white suburbs but about the front-line attack on poverty, about mobilising resources, both public and private, NGO and community, for the social and economic upliftment of our people.

Where have we got to with this exercise?

The last five years have essentially been governed by the Local Government Transition Act, a product of not only the countless community struggles across the country for an end to local apartheid and underdevelopment. We have deracialised the large number of local government structures inherited from the apartheid era, and established 843 municipalities that provide integrated management for cities, tours and rural areas. We have seen the establishment of local democracy, and the legitimisation of municipal administrations. We now have 11 300 councillors representing a broad cross-section of local interests, integrally involved in the welfare of their residents. We have also seen a massive improvement in municipal service provision, with millions of households experiencing the benefit of RDP projects in virtually every municipality across the country.

This transition has not been without its problems. The increased burden of service delivery, the lack of capacity in service provision and financial management, and the costs of amalgamation and the transition, have placed financial burdens on municipalities. At least a third of municipalities are showing signs of severe financial distress. We have also seen failures on the part of councillors and their administrations, largely due to their inexperience or lack of capacity, leading to the effective collapse of some municipalities. Local administrations have also not been transformed, and stay locked in old bureaucratic models of delivery.

Our goal in managing the final phase of the local government transition is to address these problems comprehensively, and lay the basis for a visionary new system of developmental local government for the 21st century. Our programme is both far-reaching and ambitious, and deals with financial, developmental and institutional transformation.

The programme of fiscal and financial reform includes:

* A country-wide system of monitoring municipal finances, in order to guide management and intervention, which has led to the establishment of the most comprehensive financial database on local government in South Africa.
* Day-to-day interventions in the affairs of financially distressed municipalities aiming to build their capacity for sustainable financial management. This coming financial year we are adding R140 million to this programme in order to accelerate support for financial sustainability.
* A radical reform of the system of inter-governmental grants leading to the creating of the equitable share for local government. Last year we successfully launched this programme, and the allocations to the equitable share this year show our commitment to progressively increasing this amount.
* A comprehensive review of the taxation and revenue systems of local government. Work on property taxation has led to a draft Bill which will be tabled to Parliament in the second half of this year.

The institutional transformation of local government has been spelt out by two key pieces of legislation promulgated last year - the Municipal Demarcation Act and the Municipal Structures Act.

An independent selection panel chaired by Justice Langa reviewed hundreds of applications for the Demarcation Board last year, and recommended 13 names to the President, from which he selected an 11-person Board. I would like to congratulate Dr Michael Suttcliffe on his appointment as chairperson of the Board, and wish him and the Board well in the challenges they face.

This year will see a phenomenal work programme for demarcation unfold, and it is undoubtedly going to be one of the most significant periods for the restructuring of local government. Demarcation must be an open and participatory process. The Act requires the Board for call for submissions from the public before considering any redemarcation. In addition the Act sets out a large number of criteria to guide the determination of boundaries. As a result of this I believe we will see a substantial rationalisation of local government, with a focus on creating more financially viable and administratively capacited municipalities. There will be integration of functionally linked settlements and economies, wiping away the last vestiges of apartheid. There will also be better alignment of municipal boundaries with other administrative boundaries such as health, justice and transport, which enormously improve co-operation between spheres of government around development programmes.

On the basis of demarcated boundaries the establishment of new local government structures in terms of the Municipal Structures Act will take place. The provisions of this Act will enormously boost the democratic participation of residents in local government through structures such as ward committees, sub-councils and other mechanisms. Greater accountability will be introduced into councils through a Code of Conduct for councillors, the introduction of a Speaker, and clear executive structures. We also improve the ability of political leadership to lead and manage local government. It is my intention to also look carefully into the issue of councillor allowances, and make sure that we can attract the best of South Africa's politicians into a career in local politics.

None of this institutional transformation can happen without a major programme to build local government capacity. There is already an enormous number of training and capacity initiatives focusing on skills such as planning, financial management, service delivery, municipal partnerships etc. Over the last year we have been working on a way to co-ordinate and increase capacity building work between the three spheres of government, as well as mobilising additional donor and private sector resources for this task. On the 29th March 1999 we will be launching the Local Government Transformation Programme, a multi-stakeholder initiative that brings together a vast range of resources for realising the vision of developmental local government.

I believe this is one of the most remarkable and significant initiatives of the transition, and it will ensure that the structures we create with the next local government elections are accompanied by a major programme to build their capacity.

We have accompanied the above with a substantial set of initiatives to build the developmental aspects of local government.

MUNICIPAL INFRASTRUCTURE: A HISTORICAL ANALYSIS SINCE 1994

In 1994, the Reconstruction and Development Programme (RDP) spelt out the developmental vision of the democratic government. At the core of this national developmental vision, was the explicit commitment of the government to provide basic services especially to the poor. In order to give effect to this vision, a Municipal Infrastructure Investment Framework was adopted by government in 1994. This policy informed what would become the Municipal Infrastructure Programme (MIP) a year later. In the 1994/1995 financial year, Government committed over R750 million through the Reconstruction and Development Fund. MIP grew to become major effort by Government to address municipal infrastructure backlogs. During the 1995/1996 financial year the programme became the Extended Municipal Infrastructure Programme (EMIP) and an additional amount of R600 million was made available for this purpose.

Statistics affirm the success of both programmes since 1994-95 to 1997-1998. During this period, about 1 045 projects were completed. Over seven million people gained access to water; over five million people received sanitation; over two million people gained access to roads; 500 000 gained access to solid waste disposal sites; over 300 000 people are benefiting from street lights provided; and over 600 000 people gained access to community and health facilities. The programmes also contributed towards accredited and non-accredited training of 98 862 and 297 725 person days repectively. Close to 180 000 person months employment opportunities were created and a total of 1 923 black-owned SMMEs were utilised on these projects.

The 1998-99 financial year presented enormous opportunities for the Municipal Infrastructure Programme. Firstly, the launch of the Local Government White Paper in March 1998 provided the developmental framework within which the Municipal Infrastructure Programme would be implemented in the future.

Secondly, the Consolidated Municipal Infrastructure Programme (CMIP) which collapsed the MIP and EMIP and which has become the major RDP flagship programme of the Government was implemented. This single-window, multi-year programme also had to take over 115 uncompleted BCIG projects from the Department of Housing. These projects valued at R215 million were completed during this financial year.

Since the implementation of CMIP Government has made an amount of R788 million available for municipal infrastructure. To date a total number of 946 projects have been approved with a value of R1,3 billion. Of these, 292 projects are in the design and tender phase, 393 projects are in the construction phase and 195 projects have been completed. Built into this major programme are conditions, which require municipalities to provide nominal amounts up-front for the maintenance and operation of the infrastructure to ensure long-term sustainability. A portion of the CMIP also contributes significantly towards capacity building to ensure effective management of the programme at provincial and municipal levels. A concerted effort is constantly being made through the Municipal Infrastructure Task Team (MITT) to ensure synergies across national department programmes.

Thirdly, an independent performance review of the MIP and the EMIP, undertaken by a Harvard University team, makes specific recommendations which include the need to define more precisely the role of the Municipal Infrastructure Programme in spatial development and local economic development, and a review of the relationship between CMIP and the housing programme, to mention a few. I am encouraged by the findings of this report, especially that as Government we are able to account for all funds spent on these programmes.

Lastly, in December 1998 a framework agreement on the restructuring of municipal service partnerships was signed by Salga and Cosatu. This was a result of many months of negotiations between government, Salga and Cosatu to bring Cosatu in on the need for municipalities to explore other service delivery options when the municipality cannot realistically provide the service itself. Strategically managed, this could create a great scope for government to target public funds into communities in dire needs of services. It will also allow for much needed private sector investment in municipal infrastructure and service delivery. It is essential to acknowledge however, that this does not absolve municipalities of their constitutional obligations to ensure service delivery to communities in their areas of jurisdiction. Nationally, this means that Government must be vigilant and ensure that there are appropriate mechanisms in place to monitor the municipal service partnership.

TRADITIONAL LEADERSHIP

In most post-colonial African States, traditional leadership was either, abolished or marginalised. However in South Africa, the political leadership decided to opt for an accommodation of traditional leadership, institutions and customary law within our democratic dispensation.

Traditional leaders were part of the Patriotic Front at the World Trade Centre and also participated fully in the drafting of the 1996 Constitution. Their interests were therefore catered for in both constitutions.

Chapter 12 recognises traditional leadership, institutions and customary law subject to the Constitution. Some traditional leaders have felt that this recognition is not adequate. The government's view is that chapter 12 provides a framework for the development of a comprehensive policy on all matters pertaining to traditional affairs. This will allow all concerned to review in a rational, sober and dispassionate manner progress and problems, including apartheid distortions, regarding traditional matters.

In this regard, from May 1998, the department with our provincial counterparts embarked on a process leading to the production of a status quo report on traditional affairs. Issues dealt with include an audit of all formally appointed traditional leaders, their role, powers and functions, their appointment and deposement, accountability as well as community perspectives in respect of traditional institutions, the role of women and youth and participation of traditional leaders at provincial and national spheres. The report will be produced by the end of May 1999.

After the review of this report, the department will undertake a green and white paper process. This will culminate in the drafting of a legislative framework which will repeal all apartheid legislation and transform traditional leadership and institution.

This comprehensive approach will be a first for Africa. It will give full meaning to the Deputy President Mbeki's call for an African Renaissance.

Government has established the national and provincial houses which advise it on all issues affecting traditional leadership and their communities. While these institutions are still finding their feet, they are already participating fully in our processes.

One of the sad legacies of Apartheid, was the poor and unequal remuneration packages of traditional leaders. For instance, a king in the Free State, used to get R200.00 a month. There were no pension and medical aid benefits for all traditional leaders. This government with the advice of the Steyn Commission, is reviewing the remuneration packages.

Government will soon announce uniform salary levels for kings and chiefs.

Task teams are also preparing reports to submit to the Steyn Commission so that it can make recommendations on the remuneration of the national and provincial houses, headmen and on benefits for all traditional leaders. Government is keen to bring finality to these matters.

As I have indicated we have had no useful precedents to work on because of apartheid neglect. We have already made significant strides on these matters, even before the adoption of a comprehensive policy on the role of traditional leadership and institutions.

Other departments of state are dealing with the equally difficult task of communal land tenure, land restitution, customary law courts and the recognition of customary law. Government is committed to ensure peace, stability and development in our rural areas.

The department has ensured that traditional leadership enters the information technology age and is ready for the 21st century. We have acquired a digital photographic system at the cost of R521 000. In this system, we store all information on lineages of traditional leaders, boundaries of traditional authorities, and on traditional communities. These records date back to the 19th century. This information has helped on land claims, succession disputes, will assist the new Demarcation Board, and researchers all over the world.

Madame Speaker, as I conclude this speech, I must extend my gratitude to the Director-General and his department, to the committee chairperson and members of the portfolio committee, and to my staff, to the countless others who have contributed to the mission of this portfolio, and to all of you in this house. It is with a sense of pride that I reflect on being part of a great team engaging in a great humanising project.

I thank you.

Issued by Ministry for Provincial Affairs and Constitutional Development, 12 March 1999
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