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Honourable Speaker and Deputy Speaker
Honourable members of the Mpumalanga Legislature
Honourable members of the National Council of Provinces
Honourable members of our National Assembly
Honourable MECs
Traditional leaders
Representatives of local government
Distinguished guests
Ladies and gentlemen

I am certain that all of us understand very well that our policies must respond to objective reality and not perceptions of reality. We should also be mindful that the New Patriotism remain the condition for reconstruction and development, in as much as reconstruction and development will depend on unity and reconciliation.

I quote: "Even as you and your people suffered pain, in service you blessed the things that made it possible for you and them to laugh and live and uphold their dignity as Africans and refuse to bend to the tyrant, despite their tattered clothes and the lashes on their backs.

Seeing all these things, you have known that there was always surprise and wonder, even as those who thought they had inhuman power believed they were blessed with the gift to end all surprise and wonders.

You knew that despite the efforts of those who would deny life, all nature spoke to you and your people and said that the pretended anger of the African sky foretells a future of rain, a harvest of fertility and life and good using".

These wise words, Mr. Speaker and Honourable members, tells and reminds us of where we come from as a Nation, where we come from as the African People.

The sacrifices of our heroes and heroines, our Oliver Thambo, Moses Kotane, Chief Albert Luthuli, Joe Slovo, Walter Sisulu, Alfred Nzo, Chris Hani and many others, have made us better than yesterday. Because of you we can speak of better life for all, we can shout (and proudly so) of an African President and son of the soil, His Excellency Mr. Thabo Mbeki. Without your sacrifices and commitment to a just cause, these and many other good things that happened during our lifetime would not have realised.

The mere fact that today, in the presence of these Honourable members, inside this House, I can stand proud before you and can say your Government, elected by yourself, is reporting to you the progress thus far - this in itself is an indication that the African People are now free from oppression.

We are also here today to celebrate twelve months of good delivery on the budget that was approved by this house twelve months ago.

Mr. Speaker, when President Mbeki talks of a better life for all, he refers mainly to three measurable things - access, water and energy.

But it is a fact that developing countries cannot develop unless they are prepared to invest in transport infrastructure. Transport is considered integral to all service provision as well as the supply and marketing of commodities.

It is therefore clear that our economy will not grow unless we make appropriate investments in roads and transport infrastructure. Without economic growth there is little chance that our dream of a better life for all will become a reality - in particular in the lives of the poor.

Although our Legislature is to be congratulated that it voted for an increasingly higher budget for the Roads portfolio, the voted budget is still far from adequate. I therefore would like to appeal to this House to urgently consider increased spending in this area.

Mr Speaker, I would now like to address a few of the issues I mentioned in my budget speech last year:

The department delivered on its goal to provide significant policies and legislation to guide transport planning in the province. We completed the Land Transport Framework as well as the Provincial Land Transport Act after an intensive and extensive consultation process. We will formally launch both pieces of legislation and policy once we receive final approval from the National Minister of Transport and the Mpumalanga Executive Council respectively.

The department has started with the implementation of the Bus Contract System after significant delays in the process. This process will be taken forward in the 2003/2004 financial years.

The regulation of the Taxi Industry is progressing well, as the industry is generally peaceful and cooperative. We dealt with the few exceptions through our legislative framework. Here I would like to make particular mention of the closure of the Komatipoort taxi rank. We are cooperating closely with the Cross-Border Roads Agency as well as the National Department of Transport to resolve this issue. At Marapyane, the department is also using the legislative framework to address disputes that were caused by individuals who are not prepared to accept the results of the democratic election of the provincial taxi industry representatives.

Still on the issue of the taxi industry: The department is proud to report that the Transportation Board has approved all of the applications for legal taxi operators licenses received in 2001.

The department is also continuously looking at ways to better manage our government fleet. The installation of Vehicle Identification Technology led to a significant decrease in fuel card fraud, tampering with odometer readings and curbing overfills.

Mr. Speaker

Our department made a firm commitment last year to accelerate delivery regarding the provincial road network. This we have done by committing more than half of our departmental budget - R404 million - to upgrading roads, building new roads and maintaining existing roads.

We delivered on our promise to upgrade the Moloto Road in the Nkangala District in order to improve road safety and ensure economic mobility of the people in this region. The second and third phases of this project is fast nearing completion.

The department delivered on its promise to reconstruct the road between Middelburg and Bethal and the road between Middelburg and Hendrina.

The plans and designs for the Shweni to Manzini Road and Pieterskraal to Waterval Road are complete while the plan and design for the Ngodini to Khumbula Road are halfway and for the Wonderfontein to Carolina road (P15/1) is 80% complete. Work on the D636 Karino to Plaston has started.

The construction on the high volume tourism and commuter route between White River and Hazyview is nearly complete, while our R119 million flood repair grants from national government was spent to repair flood damaged roads and bridges.

The department further fulfilled its mandate to maintain government property by embarking on a programme of alterations and additions to public health facilities on behalf of one of our client departments, the Department of Health.

Riverside Government Complex is managed as a government property. The department successfully negotiated the defects liability period which ended in August 2002 and has put in place most of the maintenance contracts for the facility.

We successfully completed six Community Based Public Works cluster projects in poverty stricken areas of our province and are in the process of completing a seventh additional project.

Verification of government property has progressed well and all government buildings are now fully utilised. Government employees are also paying rent for government houses. Improved property management has made a significant impact on the revenue collected by this department.

As municipal manager of Pilgrim's Rest, the department has made a significant contribution to the safety of tourists in the museum town by initiating an extensive street light project.

The department has also delivered by ensuring a corruption-free, disciplined and effective public service. Despite extreme staff shortages, staff members attended both internal and external training courses to improve their skill levels. Labour relations and discipline have improved, with fewer officials dismissed or charged for misconduct. We have also tried to improve our communication with both internal and external stakeholders through a variety of media.

As you can see from just this short list of achievements, the Department of Public Works, Roads and Transport has more than delivered on its promises from last year.

However, the challenges remain great. In his speech at the Opening of Legislature on 21 February 2003, the honourable Premier Mr. Ndaweni Mahlangu said that the province would expand its services through concrete and measurable deliverables. He also said that we would build more roads and improve the roads that we have.

The emancipation of women, gender equality and youth development are just some of the items that are high on the national and provincial government agenda. So is the upgrading of hospitals and community health centres, the building of classrooms and other social infrastructure.

Under the guidance of our State President Mr. Thabo Mbeki, black economic empowerment, job creation and poverty relief and skills development will also be high on the list of government objectives in this coming financial year.

Mr. Speaker, honoured guests

Against this background, it is essential that my department renew with vigour its commitment to all these objectives.

Firstly, let me address three objectives that will be of extreme importance to my department in the coming months, namely black economic empowerment, job creation and the empowerment of women and the youth.

As one of the province's main service deliverers, the Mpumalanga Department of Public Works, Roads and Transport has taken a keen interest in black economic empowerment and the support and stimulation of SMMEs.

We have been following a firm policy to support emerging suppliers, consultants and contractors through the department's roads, buildings, and maintenance and service contracts. The department performed very well according to the guidelines set by the Preferential Procurement Act as a result and built up a good record of appointment of BEE contractors.

The department's appointment of contractors on its flood reconstruction and infrastructure projects illustrates this. In the past financial year, 13 black economic empowerment companies were employed on the department's 22 flood reconstruction projects, as well as 4 joint ventures with empowerment components. Some 20 out of 34 infrastructure projects in 2002/2003 were awarded to BEE contractors. Joint ventures were awarded five of the contracts and five contracts went to women contractors.

In the coming year we hope to equal this performance, and to make substantial improvements in the support and guidance we provide to empowerment contracts.

Amongst others, our Construction and Planning Chief Directorate is at work on simplifying tender documents in order to make them more user-friendly for emerging contractors. Another innovation is a draft training policy for emerging contractors, which will address some of the problems experienced by emerging contractors on the issue of skill transference. The chief directorate is also looking at incentives to get consultants to plough back into the communities they work in by encouraging the development of technically qualified people. My colleagues in Education will agree with me when I say that a lack of black professional people - in our case engineers, architects, quantity surveyors, and technicians - is one of the obstacles on the way to real black economic empowerment.

Another aspect the Department of Public Works, Roads and Transport hopes to address is the current explosion of black-fronted companies who are winning contracts for established and untransformed interests, either as joint venture partners or as the main contractor. This trend does the whole concept of black economic empowerment a disservice, as it means, in effect, very little transfer of skills or economic power. In the coming year, the Department intends to take a very close look at all tenders for our contracts to ensure that true empowerment takes place.

Another challenge of black economic empowerment is the lack of funding that many of our emerging contractors face. This often results in lengthy delays before service delivery takes place. Two recent examples of this challenge are the delays in the building of the Piet Retief Hospital and the Moses River Bridge. For this department, it is not just a question of cancelling contracts if a contractor fails to deliver. Because of our commitment to black economic empowerment, we will continue to enter into negotiations with both emerging contractors and financial institutions to provide the financial support our contractors need. Only as a last resort will contracts be cancelled. I am happy to report that the Piet Retief Hospital project is now back on track, while the Moses River Bridge contract has been ceded to approved sub-contractors.

These are just some of the measures we intend taking to help bring about the effective and significant black empowerment referred to by our honourable State President, Mr. Thabo Mbeki in his State of the Nation Address on 14 February 2003.

The second issue I would like to concentrate on is the issue of job creation.

As one of this province's main vehicles of job creation, the department is taking its Community Based Public Works Programme (CBPWP) extremely seriously.

In the past financial year, we have spent more than R14 million on seven cluster projects in the poverty pockets of our province. This is nearly double the budget spent on the Community Based Public Works Programme in 2001/2002. In 2003/2004, this department would like to spend another R16 5 million on seven cluster projects, identified by communities in the Integrated Development Plans (IDP) of the three district municipalities.

However, what is significant about this is not only that this department is putting more resources into job creation projects, but that the number of job opportunities and economic opportunities are also increasing. In 2001/2002, CBPWP projects provided 513 jobs - both temporary and permanent. In 2002/2003, it created jobs for 584 people and in 2003/2004, the CBPWP hopes to create even more.

The spill over effect into communities during the construction of these projects has been considerable. Community members were trained in a variety of technical and managerial skills they can use to open doors to other jobs - or which they can use to start their own small businesses. Local suppliers and contractors were drawn into the projects, providing a welcome injection to local economies. All of this is slowly pushing back the frontiers of poverty in Mpumalanga poverty pockets and enabling our people to start helping themselves escape the cycle of poverty.

Mr. Speaker

I have to admit to this House that the process of making each of these new community assets self-sustainable and economically viable has sometimes proved to be problematic. The Mpumalanga government does not want to repeat the mistakes of the past, where such public works projects were of the 'building toilets in the veldt' variety. Communities need to be able to use the facilities this department creates to generate income for themselves. They need to take ownership, together with the responsible local authority, to maintain such facilities in order to preserve them for future generations.

In this coming year, my department will be exploring ways and means in which we can assist local authorities and communities on this issue. We will, amongst others, investigate the concept of community workers mentioned by the State President in his State of the Nation Address to ensure that there is better integration of Community Based Projects with Integrated Development Plans of municipalities. However, Mr Speaker, honourable Members, I would like to state clearly that this department is not responsible for the maintenance and operation of projects that were built after being identified by the responsible local municipality. This responsibility rests with the municipality who initiated the particular project.

Although the empowerment of women and the youth was part of this department's strategic objectives in the past year, it is a point of criticism that not enough was done to assist these groups on the road to empowerment.

We have done better in some areas than others. For example, our department is close to the 30% target for women in the Public Service. In particular, we have transformed our middle and senior management structures and appointed more women in management positions. If one takes into account that Public Works, Roads and Transport encompasses some of the most male-dominated professional fields, it is an achievement indeed.

We have also done well with our appointments on projects, particularly in our Community Based Public Works Programme. Three women were appointed as main contractors and another 127 women and 278 youths were employed on these projects. The department also appointed five female contractors on the 20 infrastructure projects we were involved with in the 2002/2003 financial year. Our intention in the coming financial year is to grow these numbers, while taking into account the reality that there are still very few female-dominated contractors in the market who have experience of engineering and construction.

Let me now provide you with a closer look at the achievements per budget programme as well as some of the projects that will start in the 2003/2004 financial year.

Transport

The Executive Council approved Mpumalanga Provincial Transport Policy and we launched it in April 2002. We are presently in the process of implementing the first phase of the NLTTA, Act 22 of 2002. As mentioned before, the department submitted the Provincial Land Transport Framework to the National Minister of Transport for his approval. Once approval is granted, we will launch and monitor the implementation of the framework.

The Transport Chief Directorate also completed the data for the Current Public Transport Records (CPTR) in all three districts, i.e. Nkangala, Ehlanzeni and Gert Sibande districts. This is a major step forward in coordinated transport planning for the province as the Current Public Transport Records will inform and assist transport planners in the local sphere of government to do their planning. Amongst others, the data will provide accurate information on the number of taxi ranks, bus terminals and public transport permits in the respective districts.

The Current Public Transport Records will also inform the department in the preparation of remaining provincial plans such as the Operating License Administrative System, Rationalization, Public Transport Plans and Integrated Transport Plans. We will implement some of these plans during this financial year.

We also have a final draft of the Provincial Transport Bill and Public Transport Regulations on the table. In the following financial year, the department will follow a process of public participation to obtain a broad range of inputs.

In the 2003/2004 financial year, the department will also engage in a number of initiatives in the public transport industry.

We are presently engaged in a study of taxi co-operatives, with the idea of resuscitating them. Through these cooperatives, the department hopes to address not only black economic empowerment, but also the creation of more job opportunities in the taxi industry. Our intention is to create a self-sustainable taxi industry in this province without the problems created by overcrowding.

We are still committed to the Taxi Recapitalisation process. The information at our disposal from the National Department of Transport (NDOT) is that the first vehicles will be running by August 2003. The Transport Chief Directorate will then take the process forward.

In 2003/3004, we will embark on the conversion of operating permits to operating licenses. However, this is dependant on the updating of the operating system by the National Department of Transport.

The department has started on the design and compilation of provincial bus contracts, with the aim of including black economic empowerment strategies and improving the reliability of the buses. The department is also finally proceeding with the Competitive Tendering Process of Buses that was suspended two years ago by the High Court. Target dates are being set for October 2003 in order to speed up the process.

Mr. Speaker, as part of its function as manager of Government Motor Transport, the department completed the required annual departmental vehicle stocktaking. The department identified and investigated discrepancies. To curb theft of government stock and/or vehicles and to improve security at government garages, the department installed Closed Circuit TV cameras at the Government Garage in Nelspruit. We are monitoring this pilot project on a daily basis.

The ongoing fitting of Vehicle Identification Technology (VIT) and the co-operation received form other departments has drastically reduced the misuse of fuel cards, overfills and tampering with odometer readings. The Accident Management System is also beginning to yield the desired results. The Accident and Fraud Evaluation Committee is ensuring that officials found to be negligent or to have misused government vehicles are made to reimburse the state accordingly.

Roads

The new Planning and Construction division completed the construction of four provincial roads in the past financial year, totalling nearly 79 km. Work has also started on another four road projects that will be completed in the 2003/2004 financial year, totalling close to 45 km. The department further rehabilitated and resealed 260 km of road throughout the province and re-gravelled 110 km of gravel roads.

The Mooiplaas Bridge was constructed at a cost of R4, 1 million, while the planning and designs for another four provincial roads were completed.

One of the province's flagship road construction projects during 2002 and 2003 is the completion of the P17/6 White River to Hazyview Road. In Phase 1, some 25 km of road between White River and the Numbi turnoff was reconstructed at a cost of R57, 8 million. The project was completed in December 2002 after an extension was granted. Phase 2, from the Numbi turnoff to Hazyview, will see 8 km of road and a bridge reconstructed at a cost of R43 million. The project is scheduled for completion in April 2003. During both Phase 1 and 2, 22% of local resources were used.

Another major road that will be completed this year (2003) is the P30/1 Middelburg to Bethal Road. The first phases of the road, consisting of reconstruction of 48 km from Middelburg to the border between the Nkangala and Gert Sibande Districts, started in October 2000. It was completed in October 2002 at a cost of R59, 8 million. Middelburg Mining entered into a public private partnership with government by contributing R13, 9 million for reconstruction of 9 km of the road. The last 14 km of Phase 1 towards Bethal will be completed at a cost of R40 million by December 2003. In total, 75,6 km of the road will be reconstructed during two phases.

Some 15 km of the Bethal to Hendrina Road (P52/2) was reconstructed between November 2001 and November 2002 at a cost of R22 million. During 2003, the remainder of the road will be resealed at a cost of R4 million.

The province is also at work on the Moloto Road, where 16 km of road is being reconstructed. A start was made on the construction of the first 13 km of the Driefontein Road. These two roads are amongst the examples of development in previously disadvantaged communities that is greatly enhancing economic development and mobility of communities.

In total, an amount of R423 million was spent on the administration, planning, design, construction and maintenance of roads in the province.

In the 2003/2004 year, the department will start on the construction of five provincial roads totalling more than 67 km. We will also start on 13 rehabilitation and resealing projects and six re-gravelling projects.

Amongst the roads that will be completed in the coming year are:

* 12, 8 km of the Driefontein Road, Road D1091
* 9,5 km of Road D636: Karino to Plaston
* 8,5 km of Road P17/6 between White River and Hazyview (Numbi road)
* 14 km of Road P30/1, the Middelburg to Bethal Road, Phase 1, Portion D

The roads that will be started in the 2003/2004 financial year are:

* 13 km of Road D2907: Pieterskraal to Waterval
* 3,6 km of Road D2969: Shweni to Manzini
* 25 km of Road P15/1: Carolina to Wonderfontein
* 11 km of Phase 1 of the Moloto Road: P207/1
* 15 km of Phase 3 of the D2900: Bloedfontein to Matlala

The following projects will be planned and designed during 2003/2004 financial year:

* 27 km of Road D2740: Loding to Nokaneng
* 45 km of Road D2945: Ntunda to Boschfontein
* 6 km of Road P52/3: Bethal to Kriel
* 22 km of Road D2548: Driefontein to Piet Retief
* The Sebange/Masibekela bridge

Mr. Speaker, as I mentioned earlier when I spoke about our black economic empowerment goals, service delivery was hampered in many ways by under-performing or non-performing contractors during the past financial year. This department therefore had to take a policy decision to cancel such contracts should it not be in the interest of government or the citizens of Mpumalanga to continue with them. In this regard, the contract for a R5, 2 million bridge between Allemansdrift and Senotlelo was cancelled.

Even if it is an unpopular decision, the department will continue to take a tough stance with such contractors in the 2003/2004 financial year as Mpumalanga Province cannot continue to deal with people who are not dedicated to service delivery.

Through its Design and Construction Unit, the department assisted the Department of Health with the project management on the reconstruction of six hospitals and the construction of eight new Community Health Centres in the 2002/2003 financial year. The projects include Bhu-Ga Community Health Centres in the Ehlanzeni region, Embhuleni Hospital and Perdekop, Amsterdam and Silindile Health Care Centres in the Gert Sibande Region and KwaMhlanga, Mmamethlake, Philadelphia and Witbank Hospitals as well as Moloto, Nokaneng, Seabe and Moutse West Health Care Centres in the Nkangala Region. Construction on the Piet Retief Hospital has started, and should be completed in 2004. The total budget allowed for all capital building projects for 2002/03 is R30, 7 million.

The Mechanical/Electrical section was very busy during the financial year with the preparation of three-year contracts to keep live support and occupational health and safety equipment in the best state of repair and maintenance. The department has also assisted in the supply and upgrading of eight (8) autoclaves, three (3) vacuum pump installations and the completion of two (2) tunnel washers at hospitals.

The department has instituted an audit on Occupational Health and Safety Act installations throughout the province. A report was submitted and the necessary rectifications are being done to ensure full compliance with the Act.

The department is also happy to announce that it is doing work for the Departments of Agriculture and of Sport, Recreation, Arts and Culture. The Veterinary Laboratory at Ermelo was upgraded and two libraries in the rural areas are being built. The planning for the Provincial Archive will commence in the new financial year, in conjunction with the Department of Sport, Recreation, Arts and Culture.

Mr Speaker, honourable members, in addition to my report on roads, I would like to mention that this department visited one of our road construction teams, Unit Z, during March 2003.

We were concerned about reports that these teams were standing idle while there was work to be done. What we found, concerned us even more. In all cases, work was not being done because the hired heavy machinery they were using was either faulty or not working at all.

I would like to remind this house that this department has purchased no new yellow fleet since 1994 because of budget restraints. As a result, the existing yellow fleet has aged so severely that it is nearly obsolete. The department increasingly relies on hired heavy machinery to do its work. Unfortunately, not all the companies we hire machinery from, are equally committed to keeping their machines in full working order.

This situation places the department in a dilemma, which we have to address very urgently. New heavy machinery is extremely expensive - for example, for 2003/2004 we have budgeted R2, 5 million to purchase only two graders. The question of leasing or purchasing heavy machinery was therefore just one of the aspects that I investigated during my visit to China last year. The department has now completed its investigation in this regard and submissions have been made to the Tender Board.

Community Based Public Works Programme

The Community Based Public Works Programme is one of this government's flagship poverty alleviation and job creation programmes. The 2002/2003 financial year has seen a remarkably successful implementation of this programme in identified poverty pockets in the province.

Six cluster projects were earmarked for 2002/2003 in three district municipalities and one cross border municipality with a total budget of R12 million. An additional R2 million was allocated to the programme in 2002 for the implementation of four projects within the Nkomazi East region, bringing the total budget for the Community Based Public Programme to R14 million.

I am happy to report that all the consultants and contractors employed on the seven cluster projects were HDIs (Historically Disadvantaged Individuals). The total number of employment opportunities created is 584. Of these, 127 were women, 278 were youths and 17 were people with disabilities. Some 234 people were trained in both management and technical skills during the construction of these clusters.

In the Gert Sibande Region, projects were completed at Dundonald and Lochiel.

The projects in Dundonald consist of four additional classrooms, an administration block, sewing centre and a crèche to the value of R2, 3 million. Some 157 jobs were created of which 20 were for adult women, 31 young women, 58 adult men, 47 young men and 2 persons with disability.

The projects in Lochiel consist of a taxi rank; four market stalls, three craft markets and a crèche to the value of R2, 19 million. Here 83 jobs were created of which 19 were adult women, 21 young women, 16 adult men, 24 young men and 3 persons with disability.

In the Nkangala Region, cluster projects were constructed at Thembisile and at Ga-Matlala in Sekhukhune.

The projects in Thembisile consist of an administration block, community garden and two community halls to the value of R2, 23. This project created 90 jobs, of which 20 were adult women, 10 young women, 29 adult men, 27 young men and 4 persons with disability.

Our cross border projects at Ga-Matlala in the Sekhukhune region consist of a community garden, community hall and two ablutions blocks at two schools to the value of R1, 82m. Some 46 jobs were created of which 17 were adult women, 11 young women, 13 adult men, 3 young men and 2 persons with disability.

In the Ehlanzeni region, projects were completed at Makoko, Spelenyane, Mbuzini, Goba, Hoyi and Mbangwane.

The projects in Makoko consist of four additional classrooms, an administration block, community garden and poultry houses to the value of R1, 9 million. The projects created 85 jobs of which 19 were adult women, 10 young women, 26 adult men, 29 young men and 1 for a person with disability.

The projects in Spelenyane consist of a community hall, school administration block and crèche to the value of R1, 9 million. Eighty jobs were created of which 22 were adult women, 25 young women, 13 adult men, 17 young men and 3 persons with disability.

The projects in Mbuzini, Goba, Hoyi and Mbangwane, under the Samora Machel cluster project, consist of a school administration block, two community halls and fencing of a pre-school to the value of R2, 08 million. To date, 43 jobs were created of which 10 were adult women, 11 young women, 8 adult men, 12 young men and 2 for persons with disability. This project will be completed in the 2003/2004 financial year.

With the help of our colleagues at the province's district municipalities, seven cluster projects were identified. The projects were incorporated into the Integrated Development Plans of municipalities for implementation in the 2003/2004 financial year. The projects will be built in the following municipalities:

* Greater Tubatse: Ohrigstad
* Ehlanzeni: Dientjie
* Bohlabelo: Mkhuhlu
* Gert Sibande: Piet Retief
* Gert Sibande: Iswepe
* Nkangala: Pankop
* Nkangala: Vaalbank

Public Works

Mr. Speaker, the mandate for the Chief Directorate Maintenance is to do preventative maintenance on our roads and government building infrastructure, thus improving their lifespan.

The maintenance done include heavy rehabilitation of the province's regional roads network by providing subsurface drainage, patching, cleaning of culverts and side drains; erection of guardrails and road signs; weed control and grass cutting on shoulders; reshaping and grading of road shoulders as well as fog spray and road markings.

However, the allocated budget allowed to fulfil this mandate is far from sufficient, and the department was severely challenged by limited resources, equipment and staff. The fact that very few Service Level Agreements with client departments are in place further restricted the department's ability to deliver in this regard. The pressure on our fast-deteriorating secondary road network added to the challenges experienced, and by October 2002, all three our regions had already exhausted their available roads maintenance budgets.

Despite these challenges, we could record remarkable achievements and advances during the 2002/2003 financial year.

In the Gert Sibande Region, some R15, 4 million was spent on routine maintenance, which includes erection and repairs to guardrails, patching of road surfaces and grading of gravel roads. Some R22, 1 million was spent in the Nkangala Region to erect road signs, apply road markings and do road patching. Some 3 825 km of gravel road was re-gravelled in this region alone. In the Ehlanzeni Region, R14, 1 million was spent to erect road signs, apply road markings, do road patching and re-gravel roads.

Preventative maintenance of our building infrastructure includes renovations and refurbishments. We also assisted client departments, for example with the R600 000 refurbishment of the dilapidated Swartfontein Treatment Centre. Other projects include the improvement of security lighting at Pilgrim's Rest. Some R4, 2 million was spent on this project, which will make a significant contribution to improving the safety and living conditions of the local residents and the thousands of tourists who visit this tourist attraction every year.

The Maintenance Unit also spent R805 000 on the renovation of the Kwamhlanga Government Complex. A sum of R1, 8 million was spent on the renovation of the Piet Koornhof Building in Witbank. Some 25 government houses in Middleburg, 11 in Delmas and 6 in Dr. J.S. Moroka as well as 20 prefabricated houses at Standerton, Amersfoort and Piet Retief were renovated at a cost of more than R1, 7 million.

In order to address the backlog in building and road maintenance, the department will appoint more contractors, particularly Historically Disadvantaged Individuals (HDIs) on outsourced projects as well as improve maintenance inspections and quality control on work done. There will also be a drive to improve the productivity and develop the capacity of our regional workforce.

During the 2003/2004 financial year, seven of the department's district offices will be renovated at a total cost of R8, 4 million. We will also continue with the renovation of a further 30 prefabricated government houses in Standerton at an estimated cost of R1, 2 million. Renovations at the Kwamhlanga Government Complex will continue and a further R3, 4 million will be spent there. The department also intends to continue to fulfil its function as municipal manager of Pilgrim's Rest by upgrading the town's sewer treatment plant at a cost of R1, 5 million.

In the Gert Sibande Region, the road between Ermelo and Oshoek (P81/4) will be marked and the Greylingstad to Leeuwspruit Road (D492) will be selectively regravelled and reshaped. The Carolina to Warburton Road (P81/3) will also receive attention. In the Nkangala Region, R23 million will be spent on routine road maintenance and in the Ehlanzeni Region some R11, 2 million will be spent on road patching, road marking, grass and bush cutting, blading of gravel roads and rehabilitation and re-gravelling of provincial roads.

Administration

The department has made great strides in the past year in the transformation of the department and in progress made towards a more effective public service. All ghost workers have been weeded from the system and the department is proud to announce that it has absorbed all additional / supernumerary staff members on its complement. The current number of employees currently stands at 3 668 with 2 220 posts vacant. Only 27 officials were appointed between April 2002 and February 2003, with 255 promotions and 63 transfers in the same period. Like many other government departments, Public Works, Roads and Transport is currently experiencing great difficulty in attracting and retaining experienced professional staff such as managers, engineers, architects and quantity surveyors.

However, this does not mean that the staff that we have will not be encouraged to become more efficient and effective. In this coming year, we will participate with the rest of the Public Service in training champions for the implementation of the new Performance Management System for Levels 1 - 12.

The department has further seen several changes in its senior management with the resignation of its HOD early in 2002 as well as a senior management restructuring.

The department made progress in its implementation of the Employment Equity Act with larger numbers of women and other previously disadvantaged groups being appointed at all levels of the organisation. Some seven members of the department's senior management team are women, including the department's Chief Financial Officer. The department is now close to the 30% appointment level of women required by the Act - an achievement in a traditionally male-dominated field.

In its quest towards an effective and efficient Public Service, the department has taken a zero tolerance approach to corruption. In this regard, all legal matters are handled professionally and with reasonable speed. The department also ensures sound and amicable labour relations between management and employees.

Labour relations have improved, with a downturn in the number of misconduct cases reported. The cases reported are becoming less serious and most of them are resolved amicably. As far as legal matters are concerned, the State Attorneys are now more cooperative and notify us about cases against the department in time.

The backlog in cases has decreased because of the direct working relationship with State Attorneys. Correspondence is sent directly to the department's Legal Services Unit and not to the Premier's Office as happened previously. However, the decrease in the case backlog also meant that the department spent more than it budgeted for in order to settle long outstanding payments to parties who were granted judgements against the department. Some cases required the appointment of forensic investigators, which absorbed a large amount from the Legal Services budget.

The department is proud to report that disciplinary hearings were held and the cases finalised for all 14-corruption cases reported between April 2002 and March 2003. General compliance amongst officials with the regulations and prescripts applicable in the Public has also improved.

The main challenges facing the department's Legal Services Unit are the rising costs in legal fees that make it difficult to stay within budget, hiring of the services of forensic investigators to assist us in more complex investigations and the large number of cases that need urgent attention.

Mr Speaker, building capacity in the Public Service has been a major challenge in the past financial year. My department engaged the process by enhancing the skills of both members of the public and serving officials through further study. Some 132 bursaries were paid out in 2002/2003, totalling just over R780 000. The areas of study include professional and technical skills for which there is a great need in our department.

The Human Resource Development Unit also provided occupation-based training to the various chief directorates in the department. As part of our efforts to become more efficient, officials were trained on labour relations issues such as disciplinary procedures, grievance procedures and change management. Officials were also workshopped on a variety of policies, such as HIV/AIDS, Sexual Harassment and the Human Resource Development Policy as well as the Code of Conduct. One of our successes has been the establishment of a Workplace Skills Development Committee (WSDC) to oversee skills development in our department.

Five hundred and fifty five (555) staff members without formal qualifications registered for ABET Level 1 in the 2002 academic year. More than R741 000 was spent on this programme, which is delivering great results in providing staff at the lower levels with the necessary skills to develop.

Amongst the challenges the department faces in the coming year is to conduct a Skills Audit, which will assist us in identifying the training and development needs of employees. We also intend to ensure that the WSDC works effectively and efficiently to build the capacity and skills of all staff members. A Capacity Building Roadshow will be held in February 2004. The main aim of the roadshow is to promote transport as a career and as a field of study. It forms part of our department's efforts to lend a hand to build the capacity of members of our community that still find themselves caught in the cycle of poverty.

Mr Speaker

The principles of Batho Pele as well as a variety of Acts, from the Public Access to Information Act to the Administrative Justice Act, places great emphasis on communication with stakeholders.

Despite limited resources, our department is slowly forging ahead in informing our stakeholders about our department's projects and achievements. As we believe that our staff members are our best ambassadors, the Communication Unit has spent a lot of time and attention on improving internal communication in the past financial year. Amongst others, the 2002/2003 financial year saw the nomination of a Departmental Communication Forum, which is tasked to help improve communication between staff and management.

The department's relationship with the media and image amongst the general public is slowly improving. By being more pro-active and responsive to information demands, the good news about delivery on roads and infrastructure is starting to sink in. Tools such as our departmental brochure and website, which will be formally launched this month, will be used to good effect in the coming financial year. This department will also be paying closer attention to the information needs of our external stakeholders. A stakeholder survey will be conducted later this year to ensure that we have scientific evidence of how our stakeholders perceive our staff and our services. Another challenge the department will face is the marketing of the department's services in a competitive media and information environment wherever increasing prices will have a huge impact on the department's communication budget.

Mr Speaker

With the restructuring of the department, Administration also added the Facilities Management and Property Unit to its responsibilities.

The unit could record a significant increase in revenue collection as a result of improved property and facilities management processes.

Amongst others the unit coordinated the sale of surplus government houses and improved payment of rentals for government housing. Some 27 deeds of sale to the value of R2 974 000 were signed for. The unit is also addressing the issue of arrear rentals on government housing. Some 14 stop orders for arrear rentals were signed amounting to R105, 175. 47. Of the 833 arrear rental declaration forms that were sent out for signature, 753 were returned (90%). This issue will receive further attention in 2003/2004.

Improved leasing and disposal of redundant government properties added to the revenue collected. One of the government properties this department administers is the museum town of Pilgrim's Rest. Twenty-nine leases were signed at Pilgrim's Rest and the Ponieskrantz stables there were privatised, generating an annual income of R72 000. We expect that the total revenue for this property over the contract period will be in excess of R1, 1 million. The management of the Pilgrim's Rest Caravan Park also changed hands in November 2002. This contract will generate R83 000 per annum over the contract period of three years. During 2003/2004 the department will further formalise and implement a policy for the allocation of businesses and housing at Pilgrim's Rest.

I also granted approval for the sale of 39 business sites in Lydenburg. A valuation was done and the issue of the Section 28(1) certificate, for the Lydenburg properties was approved. In the 2003/2004 financial year the Lydenburg business sites will be sold at an expected value of R1, 3 million.

The maintenance and management of the Riverside Government Complex is one of the duties of the Facilities and Property Management Unit. During the past year, services were improved by the addition of ATM facilities operated by ABSA and Standard Bank. This generated rental revenue of R24 000. The department also erected a bus pickup and drop off zone to assist employees who are dependant on public passenger transport. The department further implemented the official parking policy for the Complex in order to address problems with overcrowding of parking areas. We expect to collect revenue of R217 000 per annum by ensuring that all officials pay for parking. MTN and Vodacom will erect base stations to boost cellular reception. This will generate a total revue per annum for both rentals of R24 000.

In the 2003/2004 financial year we have identified 10 leases for termination, which will reduce leased accommodation and result in a cost saving for government. We also intend improving the letting and disposal of redundant government-owned properties. Amongst others, conveyancers will be appointed to speed up the sale of redundant government houses.

Routine maintenance of the Riverside Government Complex will continue, and the appointment of a contractor to run day-to-day maintenance finalised. Amongst others, the department will also install additional security cameras at the complex at a cost of R4 million.

One of the major projects of the Facilities and Property Management Unit will be the purchase of land for the proposed Parliamentary Village and its development. Preliminary estimates place the cost at R30 million.

Mr. Speaker. The department also made marked improvements in its general financial control and management.

As mentioned before, revenue collection improved due to more effective systems, processes and procedures. As a result, the revenue collection budget was exceeded by R3, 6 million as at the end of February 2003 and increased by the end of March 2003.

Spending patterns have also improved, with under/over expenditure being kept to a minimum variance. The department is particularly proud to report that out of a total budget of R770, 7 million, it has under spent by only R146 000.

Mr Speaker, it is now my pleasure to present the budget of the Department of Public Works, Roads and Transport for the 2003/2004 financial year for your consideration. The budget per programme is as follows:

Programme 1
Administration: R87 593 000

Programme 2
Public Works: R183 274 000

Programme 3
Roads: R466 836 000

Programme 4
Transport: R53 177 000

Programme 5
Community Based Public Works Programme: R16 587 000

TOTAL BUDGET: R807 467 000

Mr Speaker, this budget of R807 million demonstrates our commitment to accelerate delivery. It is in line with our five-year strategic plan and our service delivery improvement programme. It is based on sound financial principles and a dedication to providing excellence with available resources.

Mr Speaker, colleagues, ladies and gentlemen

This year the Mpumalanga Department of Public Works, Roads and Transport will turn the tide by building a people's contract to improve our roads, public buildings and related infrastructure. It will indeed be a department on the move as never before!

In conclusion, Mr Speaker, I would like to thank all those who made this budget possible. In particular, I would like to thank The Acting HOD of the department, Mr William Mthombothi, the Senior Management and all staff members of the department for their hard work and dedication to make this one of the best delivery years ever for this department, Members of the Portfolio Committee for their guidance, support and assistance, Members of the Executive Council for their support and encouragement, National Ministers Dr Abdullah Omar and Ms Stella Sigcau and, The honourable Premier, Mr N J Mahlangu for his leadership throughout the past financial year.

I thank you

Issued by Mpumalanga Provincial Government

22 May 2003