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14 July 2006

Introduction

The Deputy President of the Republic of South Africa, Ms Phumzile Mlambo-Ngcuka, accompanied by Cabinet Ministers, the Premier of the Western Cape Ebrahim Rasool and his provincial executive and senior government officials will visit the Eden District in the Western Cape province on Friday, 14 to Saturday, 15 July 2006.

The Deputy President will interact directly with the District and Local Municipal leaders, key sectors and the public in an effort to strengthen performance at a local government level. Presidential Izimbizo are aligned with Project Consolidate, a hands-on Local Government support and Engagement Programme as well as the Accelerated and Shared Growth Initiative for South Africa (AsgiSA). Central to these Izimbizo is the Integrated Development Planning (IDP), process, which enables and empowers communities to participate in confirming local development priorities.

Background

In 2005, in the previous phase of the Presidential Izimbizo programme, the main focus was the municipal council, its officials and Ward Committees, with attention paid to Project Consolidate municipalities. The aim was to focus on problems related to less than optimum levels of service delivery. In this current phase, the Presidential Izimbizo Programme will still focus on the council and officials. Added to this current phase is the opportunity for interaction with stakeholders, i.e. business, youth groups and farmers.

Through these Izimbizo, an opportunity is provided for all three spheres of government, stakeholders and communities to interact in an unmediated manner on matters of service delivery and development.

Key to the support provided to municipalities is strengthening the capacity to deliver. To support this objective, the January 2006 Cabinet Lekgotla adopted three strategic priorities to support local government sector for the next five years. These are:

* mainstreaming hands-on support to local government to improve municipal governance, performance and accountability
* addressing the structure and governance arrangements of the State in order to better strengthen, support and monitor local government
* refining and strengthening the policy, regulatory and fiscal environment for local government and giving greater attention to enforcement measures.

Summarised profile of Eden District Municipality

Eden is the third largest District within the Western Cape Province. It comprises of seven local municipalities and a District Management Area. Some of the challenges faced by the District are the rapid urbanisation, in-migration, and rising health indicators. The District experienced a 39% increase in urban population between 1996 and 2001 and a 19% increase in the rural population.

The District Municipal area is made up of seven Local Municipalities, namely:

* Bitou Municipality
Plettenberg Bay; Die Brakke; Keurboomstrand; Kranshoek; Kurland; Nature's Valley; Platbos; The Crags; Wittedrif

* George Municipality
George; Bergplaas; Blanco; Herold; Heroldsbaai; Hoekwil; Kleinplaat; Pacaltsdorp; Rondevlei; Wilderness; Wilderness East

* Kannaland Municipality
Anysberg; Badshoogte; Bergsig; Calitzdorp; Droevlei; Kraaldorings; Ladismith; Oosgam; Plathuis; Vanwyksdorp; Vleirivier; Zoar

* Knysna Municipality
Barrington; Bracken Hill; Buffelsbaai; Concordia; Gouna; Karatara; Knysna; Kraaibos; Kruisvallei; Mielierug; Noetzie; Sedgefield; Sonskyn

* Hessequa Municipality
Albertinia; Askraal; Brandrivier; Gouritsmond; Grootjongensfontein; Heidelberg; Port Beaufort; Reisiesbaan; Renier; Riversdale; Stilbaai-Oos; Stilbaai-Wes; Vermaaklikheid; Witsand

* Mossel Bay Municipality
Boggomsbaai; Brandwag; Buysplaas; Cooper; Friemersheim; Gannakraal; Glentana; Groot-Brakrivier; Hartenbos; Herbertsdale; Klein-Brakrivier; Mossel Bay; Reebok; Ruitersbos; Sinksabrug; Tergniet; Vleesbaai

* Oudtshoorn
De Rust; Dysselsdorp; Grootkraal; Kruisrivier; Le Roux; Matjiesrivier; Oudtshoorn; Schoemanshoek; Stolsvlakte; Vlakteplaas; Volmoed; Waaikraal.

Kannaland Local Municipality is the only municipality that has been identified to receive support under Project Consolidate. Education levels in the district are low as only 31% of the population older than 20 had some secondary education and 22% obtained grade 12. Only 9,6% of the population completed tertiary education.

George is the economic hub of the District and also houses the District Municipal offices. The District is characterised by good holiday resorts and beaches stretching across the garden route. Some of the evident challenges of Eden District include unemployment, poverty, housing and health challenges. There are a number of Khoi-San communities within the Eden District. Two well established Griqua communities are based at Kranshoek, Plettenberg Bay and the Crags near Knysna.

Municipalities have five Key Performance Areas which are assessed and monitored. They are:

* Basic Service Delivery and Infrastructure
* Local Economic Development
* Municipal Transformation and Institutional Development
* Municipal Financial Viability
* Good Governance and Community Participation.

Basic Service Delivery and Infrastructure

The District Municipality has made some progress with regard to provision of service delivery. The main challenge in the District is the provision of housing. This is as a result of the rapid urbanisation and in-migration, especially in informal settlement areas.

Access to water and sanitation in the rural areas in particular needs to be improved. George Local Municipality has the highest number of buckets in formal housing areas. All the local municipalities within the district have adopted indigent policies and are providing free basic water and electricity.

The total number of households with electricity backlogs in the Eden District stood at 16% in March 2005. Kannaland Local Municipality had the highest percentage of backlog which was 24%. The provision of free basic water to the total households in the District is 67% and 84% of the poor.

Eden District Municipality received a total of R37, 916 million allocations in the Municipal Infrastructure Grant for the financial year 2006/07. Since April 1994 to April 2006, the national Department of Housing indicated that 56,99% of 36 399 planned units in Eden District are completed. Another 7 043 are still under construction.

Local Economic Development

Eden District Municipality is a region with a strong and highly diversified local economy and is endowed with rich natural resources and a growing pool of good human resources. Economic growth for the District Municipality in 2004/05 was three percent, which is higher than the average for the Western Cape.

The District Municipality contributes over six percent to the Gross Domestic Product of the Western Cape province. The growth is mainly driven by the wholesale and retail sectors largely benefiting from the proceeds of tourism. Tourism contributes 15,2% to the economic activity of the District. Financial, property and business services contribute 13,6% and manufacturing is 13,5%. Agriculture and tourism are the drivers of the District economy. Eden accounts for 9% of the employment base of the province and 10% of its unemployment. Unemployment stands at 26.5%.

Municipal Transformation and Institutional Development

Most of the Local Municipalities have demonstrated relative administrative and political stability over the past five years. Currently, there are acting municipal managers in three of the municipalities, namely Kannaland, Mossel Bay and George. The process of filling some of the Municipal Manager posts is nearly complete Vacancies with regard to professionals exist especially in Eden, Kannaland, George and Knysna.

The District Municipality has adopted the District Performance Management Framework and secured a service provider to finalise and organise the Organisational Performance Management System. Some Local Municipalities have also adopted Performance Management Systems.

Municipal Financial Viability

The District Municipality and its local municipalities have budgeted R1,186 billion for its total operating revenue. The amount of R1,160 billion was budgeted for operating expenditure and R335 million for capital expenditure.

The expenditure on salaries and wages is 37%, which is higher than the norm of 30% of the operating revenue determined by National Treasury. The operating grants are low in relation to total operating revenue but should support the provision of free basic services to communities within the District Municipality and its local municipalities.

The Auditor-General has performed the audits for Kannaland in 2006. The findings of the Auditor-General have not been released to the municipality. Mossel Bay and George consistently received unqualified audit reports from the Auditor-General for three financial years since 2002/03. Other municipalities have consistently received qualified reports from the Auditor-General. Kannaland Municipality is currently receiving support under Project Consolidate in this regard.

Good Governance and Public Participation

All local municipalities have adopted a policy to implement the Ward Committee system. Although Knysna is still experiencing some challenges with regard to implementation of the policy, other municipalities are on course. Some municipalities have budgeted for the functionality of the Ward Committee system.

There is a need to strengthen working relations between Municipalities and Ward Committees in the District. Although community development workers have been deployed in the area, challenges of communication and availability of government information remain.

Conclusion

The Presidential Izimbizo forms part of efforts to accelerate the implementation of government's Programme of Action (PoA) and improving the institutional capacity of local government to deliver basic services to communities as well as advancing community participation to create a better life for all.

These Izimbizo for 2006 present a platform for engagement between government, civil society, business, key stakeholders and communities. It will also seek to create a favourable environment for government to implement the three local government priorities for the next five years.

These interactions will seek to provide immediate solutions to challenges experienced by Eden District, some of which are raised in this preview, namely that of service delivery and development at local government level.

Issued by: Department of Provincial and Local Government
14 July 2006
Source: Department of Provincial and Local Government (http://www.dplg.gov.za)