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Address to the Limpopo Provincial Legislature by MEC for Department of Local Government and Housing, Mme Maite Nkoana-Mashabane on the occasion of the Budget Vote, Lebowakgomo Legislative Chambers
22 May 2008
Honourable Speaker and the Deputy Speaker of the Legislature
Honourable Premier, Mr Sello Moloto
Colleagues in the Executive Council
Honourable Members of Parliament
Honourable Members of the Provincial Legislature
Executive Mayors and Mayors of local municipalities
Chairperson and Members of the House of Traditional Leaders
Our esteemed Majesties and Your Royal Highnesses present
Leaders of Chapter Nine and Ten Institutions
Leadership of the African National Congress (ANC) and other political organisations
Stalwarts and veterans of our struggle
Leadership of various religious denominations
Women, youth, business, labour and community leaders present here
Your Excellencies, Members of the Diplomatic Corps
Distinguished guests
Comrades
Ladies and gentlemen
Amilcar Cabral, one of the greatest African theoreticians, revolutionary and freedom fighter, says in his book, Materialist Theory and Practice of Culture and Ethnicity, that: "Always bear in mind that people are not fighting for ideas, for the things in anyone's head. They are fighting to win material benefits, to live better and in peace, to see their lives go forward, to guarantee the future of their children."
This is in line with what the Freedom Charter asks of us to do. In saying there shall be houses, security and comfort, It further says: "All people shall have the right to live where they choose, be decently housed, and to bring up their families in comfort and security".
For these legitimate expectations of our people to be met, we must walk the talk. Va Tsonga vari mintirho ya vulavula. As we act we do so in partnership with our people. This is in response to the people's contract which we have entered into. Our people know and understand that we are our own liberators.
As the Department of Local Government and Housing, we have been hard at work, mindful of the fact that our people want to see their government in action. We believe through our actions we have been able to turn the tide.
In October 1997, former President of the Republic of Tanzania and a great African freedom-fighter, Julias Nyerere, addressed a joint sitting of our National Assembly on the invitation of our First Democratic Parliament.
Nyerere, also known as Mwalimu (or The teacher), spoke about the three major power blocs developing in the world, and mentioned these as the United States, Europe and East Asia.
Nyerere said, because these areas were consolidating their influence on the global community, they also become popular destinations for those in neighbouring countries running away either from political instability or hunger, caused mainly by unemployment. He singled out North Africa as one of the regions where people would find it easier to migrate to Europe, for example, in search of greener pastures.
In a passionate reminder, Nyerere said to that Joint Sitting of our Parliament: "Africa south of the Sahara is different. It is not in the orbit of any of those areas (the US, Europe and East Asia)" He said: "If you people here are unemployed, very few of you would want to go to the United States.
"The unemployed here will stay here. But so will the unemployed in Tanzania. We'll not go to the US. We'll not go to Europe. Certainly, we'd never dream of going to Japan or anywhere else. A trickle will go out. But there is no answer to our unemployment in running away from where we are."
Nyerere continued saying: "And if you try (running away from where you are), it won't work." He urged us to confront our challenges head-on, instead of seeking refuge in faraway locations.
Honourable Speaker, we are here today to account to the people through you and the rest of other democratic representatives of the people of our country. Nyerere appealed to us in 1997 not to run away from our challenges, and, indeed, we are here today to provide feedback on what we have done in partnership with our people for indeed we maintain that development is about people.
The Majority Party in this and other legislatures across the country, the African National Congress (ANC), has declared the year 2008 to be "The year of mass mobilisation for a caring society". Given the fact that we only have a year before the expiry of the mandate of the current government and that we are now 14 years into our democracy, this year of mobilisation could not have come at a better time.
As we celebrate 14 years of democracy, all of us can agree that it has been 14 years of political stability, positive economic growth and a general improvement in the lives of the people. We cannot, however, forget those who lost their lives in the struggle for the democracy that we now enjoy. This year we celebrate 15 years since the assassination of Chris Hani, a disciplined cadre dedicated to the attainment of democracy and equal freedoms for all.
Speaking of the late Comrade Hani, it's perhaps opportune that I refer to his philosophy on the ideal public servant. Hani once said: "Everybody of course would like to have a good job, a good salary, and that sort of thing. But for me, that is not the be-all of a struggle.
He said: "What is important is the continuation of the struggle – and we must accept that the struggle is always continuing. Under different conditions whether within Parliament, or outside Parliament, we shall begin to tackle the real problems of the country."
Hani correctly believed in the concept of servant leadership, of selfless service to the people. He recognised the political differences of the people and believed, still, that even in the midst of those differences; we had to put the people first because, in the first place, personal gain was "not the be-all of a struggle."
As we remember Hani and other fallen heroes and heroines of our struggle throughout this year of mass mobilisation for a caring society, we will also be celebrating the 90th anniversary of the formation of the Bantu Women's League, which played a critical role in mobilising women to play a central role in the struggle for liberation. We salute the heroic efforts of those brave women of our country and rededicate ourselves to serve the people, particularly the poor and the vulnerable, with integrity, honesty and transparency.
The ANC government may not have been in office long enough to reverse the legacy of more than 300 years of colonialism and apartheid; but, through the various forums that we have established to keep in constant contact with the people, we have established where the challenges are and we are well on course to bring about a better life to the people of our province and country.
During the 14 years that the ANC government has been in office, we can look back at our record with some pride in various key areas underpinning our democracy, not least of them the local government sector, which is the sphere of government closest to the people, and the housing sector, which in the apartheid years was used as one of the tools to segregate the people on the basis of race and class.
Local governance
Honourable Speaker, our municipalities are still serving under the 2006 Local Government Election mandate. Amongst other things, the people have overwhelmingly mandated us to "Make Local Government Work Better". To ensure that this happens, government has developed the Five-Year Local Government Strategic Agenda, which prioritises the following five areas:
* building institutional capacity and municipal transformation
* improving basic service delivery and infrastructure
* financial viability and management
* local economic development
* good governance and public participation.
We are in the third year of implementation of the five-year strategic agenda and we can confidently say the tide has turned.
Building institutional capacity and municipal transformation
The Department of Local Government and Housing has conducted an assessment on municipal organisational structures in all municipalities with the purpose of aligning the structures with the Performance Management System (PMS) and the budget.
Three types of model organisational structures were developed in line with the grading of municipalities. The skills audit for section 57 managers was also conducted at municipalities. The department will be monitoring and supporting the implementation of model organisational structures by municipalities.
Through this organ, the department will develop a comprehensive Provincial Performance Monitoring and Evaluation Framework that will include development of performance measurement systems, performance monitoring tools and as well as the development of MEC's report in compliance with the legislative obligations. In this regard, we will ensure that all municipal managers have signed their performance agreements and improve accountability both to municipal councils and communities.
As part of monitoring implementation, we shall ensure that municipalities report monthly, quarterly and annually. These will be our priority projects for the year:
* alignment of organogram of municipalities to the model organogram as developed by the department
* competency assessment for all section 57 managers
* filling of all vacant Chief Financial Officers' (CFOs) posts to improve financial management.
Improving basic service delivery and infrastructure
Because improving basic service delivery and infrastructure remains one of government's top priorities, the Limpopo province indigent policy framework has been developed and launched to assist all municipalities in developing compliant indigent policies. Again, we have assisted all 15 project consolidate municipalities in developing their Localised Indigent Policies. These registers will help guide municipalities in identifying eligible beneficiaries for social services, which include social grants as well as free basic services. These interventions are part of our strategy to eradicate poverty and underdevelopment.
During the months of March and April 2008, we conducted five Free Basic Services awareness campaigns - one in each district to raise awareness on the Free Basic Services Programme and to encourage those who have registered for these to collect their tokens. We are encouraged by the improvement in token collection for Free Basic Electricity and Free Basic Water as a direct result of the awareness campaign. Indeed, the tide has turned.
Allow me to also express our appreciation to Eskom and Lepelle-Northern Water. These road shows would not have been a success without them. Once again this is proof that through partnership with our stakeholders, we can and we are making a difference in the lives of our people.
In response to the national energy crisis, our municipalities have developed energy saving plans that have been consolidated into a provincial plan. Our country should learn the hard lessons from this experience. We are pleased that our national government has moved swiftly to develop a national response plan. We would like to make a call for every household and business to join government in its efforts to save energy. If you are not using it, switch it off. Whilst Eskom is building additional power reserves to match the needs of our growing economy, we must continue to conserve electricity.
We are encouraged to know that our people understand that we are in this together.
Honourable Speaker, during the Easter holidays we joined Eskom and the Department of Roads and Transport along the busiest routes of our province in disseminating messages to the millions of visitors and holiday makers to conserve energy. To those partners, we say le ka moso!
In this financial year, we shall prioritise the following projects:
* pilot rural sanitation in line with the modified Sulabh model at a cost of R2,5 million
* assist the ten growth points with assessment of the status of bulk infrastructure at a cost of R10 million
* to achieve household's supply of 80% for water as compared to the current 72%,
* to archive household 77% supply of electricity as compared to the current 74% household supply, and further improve on to 50% sanitation as compared to the current 44%; and
* conduct a service impact analysis to establish the level of services provided in municipalities as well as establish value for money on all projects implemented on Municipal Infrastructure Grant (MIG) and Premier's Emergency Infrastructure Grant.
Financial viability and management
We have recorded significant improvement in the filling of posts, in 2006/07 we had 47% of CFO's posts filled; to date we have improved to 80%. According to the municipal demarcations board report, the province has the highest number of CFOs with financial qualifications at 93%. Additionally, the province has improved on employment equity from 22% in 2006/07 to 33%. This is definitely a step in the right direction in our quest to reach the 50% target.
An assessment of performance of our municipalities has revealed that municipalities are still grappling with financial management and viability to an extent that the Department has assisted six Project Consolidate municipalities with the development of revenue enhancement strategy. We continue to assist municipalities to develop credible billing systems thus improving their revenue base. This year we shall focus on:
* development of revenue strategies for municipalities at a cost of R4 million
* implement a robust awareness programme as part of the new property rates act
* assist municipalities with the development and implementation of revenue enhancement strategies
* assist five municipalities with the development of valuation rolls: Mopani, Molemole, Fetakgomo, Polokwane, Mutale; at a cost of R 1,5 million
* assist municipalities with the deployment of hands-on support on financial systems administrators.
Local Economic Development (LED)
We are pleased to report that a total of 50 Local Economic Development projects which cuts across all sectors were awarded. Implementation of the projects has commenced and a total of R125 million has already been disbursed. As part of strengthening local economies, we assisted 28 municipalities with their LED strategies. We have set ourselves a target of ensuring that all municipalities have credible LED strategies by the end of this year. For this financial year, we shall prioritise:
* Strengthening the EU programme to ensure that we disburse funding as required.
* Monitor the number of jobs created through LED interventions.
Good governance and participation
We have assisted 13 municipalities in the development of risk management and anti-corruption strategies. Whilst we are ensuring that we have the correct systems in place to detect acts of corruption, particularly the embezzlement of funds intended for the needy, we must also warn those with intentions to crook our systems that, by stealing from municipalities, they are stealing from the poor and are therefore severely and directly incapacitating our municipalities.
It is therefore critical that this year we focus on implementing the capacity building strategy in all municipalities in line with the five KPA's and conduct a customer satisfaction survey.
Project Consolidate
Honourable Speaker, we are continuing with special interventions to the 15 Project Consolidate municipalities in the province. On the occasion of our Budget Vote Speech last year, we reported that we have supported all 15 Project Consolidate municipalities with technical skills for proper planning and programme management.
Last year we reported an improvement in the submission of financial statements by Project Consolidate municipalities. Of the 15 municipalities under the project, 11 had submitted their financial statements on time in 2007, compared to only six in 2005. We are glad to announce that out of the 30 municipalities in the province, 27 municipalities have submitted their annual financial statements on time. Because our target is 100% compliance, we will see to it that the remaining municipalities join their counterparts in ensuring that their annual financial statements are submitted on time.
Spatial Development Framework (SDF)
Honourable Speaker, the Spatial Development Framework (SDF) is a vital planning tool for guiding development in municipalities. It is a tool that should be utilised to ensure that the province expedites spatial transformation accordingly. It is against this background that the department embarked on a programme to ensure that municipalities must have SDFs by the end of the 2007/08 financial year. We are pleased to announce that 27 municipalities have developed SDFs.
The Department will continue to support the remaining three municipalities, whereby the Department of Land Affairs will pilot the development of SDF for Thulamela municipality along the proposed principles of the draft Land Use Bill.
Through the departmental intervention to support municipalities to develop SDFs, we noted a need to further review SDFs of municipalities particularly in the ten growth point's municipalities to ensure the development of integrated human settlements. In this regard, our plan is to support the review of the SDF of Lephalale Municipality in order to cater for the envisaged economic development in that municipality. It is critical for municipalities to develop Land Use Management Schemes (LUMS) that would ensure proper planning. To date, all local municipalities have developed land use management schemes with the exception of Greater Tzaneen, Greater Letaba, Greater Giyani, Modimolle and Mookgophong municipalities. However, we further confirm our support to ensure that these municipalities will have the plans by the end of the current financial year.
The department has been able to consolidate support to districts and local municipalities; however, there is a need to build capacity within districts to become theatres of planning with a view to develop districts master plans. We agree with the saying that proper planning prevents poor performance.
Honourable Speaker, It is said if you are a pioneer, you should be prepared to walk a lonely road. We, however, believe that the innovative pioneering projects and programmes we introduce will only succeed if our people are brought on board. We are in this together with our people. For they understand that we are our own liberators.
Limpopo is among the pioneers of the development of infrastructure asset management plans per sector within municipalities. We are piloting the project in four municipalities, namely Blouberg (electricity), Greater Giyani (sanitation), Greater Tubatse (roads and storm water) and Thulamela (water) municipalities. The project has already developed asset registers for the identified sectors in pilot municipalities and it is on schedule. We intend rolling it out in the ten growth point municipalities in the province. This pioneering project will assist municipalities in accounting for the money they invest in infrastructure development.
Meetse ke bophelo
The construction of De Hoop Dam is progressing well. This is a major development towards enhancing delivery of projects that fall under Accelerated Growth Initiative of South Africa (AsgiSA). The De Hoop dam will be a major thirst quencher for our people in Sekhukhune and beyond. We must continue to plan in advance so that we derive the many downstream economic opportunities that will arise with the completion of this dam.
Honourable Speaker, as we improve access to water in our province, we have agreed with our municipalities that emphasis and resources should be put in the maintenance and operations of water schemes. Maintenance will prolong the life of the infrastructure. In the same breath, we wish to reiterate the call that all those who can afford to pay for the water and electricity services they consume must pay.
Honourable Speaker, Limpopo is not immune from disaster risk. We are exposed to a wide range of weather hazards ranging from drought to floods, which can trigger widespread hardship and devastation. The role of the Department is to ensure that the Disaster Management Act is implemented and anchored in the principles of:
* integrated and co-ordinated disaster management
* establishment of disaster management centres
* disaster risk management volunteers as we move towards the 2010 soccer world cup.
A good disaster management strategy allows you to deploy resources correctly as and when disaster strikes. We have established a provincial disaster advisory forum that is constituted by relevant stakeholders from both private and public institutions. This forum envisages that all districts of our province will have their functional disaster management centres by 2009.
We are pleased with the co-operation of various role players, particularly in the establishment of an early warning system to avert disasters if possible or act promptly when they strike. All our districts have been equipped with fire fighting equipments, enabling them to respond promptly in case of any fire emergencies.
Honourable Speaker, last year, our department, in partnership with municipalities, introduced an innovative concept called "My Councillor and I" whose aim was to enhance communication between municipal leadership and community members in the province.
The My Councillor and I programme is an "Imbizo on air". In partnership with South African Broadcasting Corporation (SABC) Radio Stations in Limpopo (Thobela, Mungana Lonene and Phalaphala FM) as well as 10 Community Radio Stations in the province, we broadcast a talk show programme designed to afford our people an opportunity to voice their sentiments to their democratically elected councillors. We are pleased to report that the campaign has been a resounding success.
It has assisted in making our councillors accountable and given communities a voice. The campaign has been recognised with awards nationally and provincially. The national Department of Provincial and Local Government and the national Department of Housing have recommended it to all other provinces.
In this financial year, we intend to make it bigger and better, rolling it out even to the print media for we maintain that development is about people. We would like to take this opportunity to thank our media partners, SABC radio stations, and community radio stations, local and national newspapers for their contribution to nation building.
Honourable Speaker, our overall performance in the area of local government shows that, even in the face of some mounting challenges, we are making progress. Some of the highlights include the fact that we have been able to:
* Develop a framework for infrastructure investment framework for Waterberg and Sekhukhune districts.
* Develop a co-operative agreement with the Provincial Treasury to address challenges in municipal finance; hence we have been able to establish a multi-facet task team to intervene in Ba-Phalaborwa, Greater Tzaneen and Makhuduthamaga Local Municipality.
* Ensure that municipalities submit quarterly reports and half yearly reports which have strengthened monitoring and timeous support to all municipalities.
* Develop a plan to address spatial planning in municipalities
* Consolidate resources to support the Ten Growth Points in the province
* ensure that all 30 municipalities have appointed municipal managers (Limpopo is one of only three provinces to have a 100% record in this regard). This is clearly supported by the municipal demarcations board's reports, which stipulates that Limpopo is one of the provinces that demonstrates a growth rate in the average staffing level of more than 10% from 2002/03 to 2007/08.
* Limpopo was the first province in the Republic of South Africa to embark on a project to align old Legislation prior to 1994 in line with prescripts of the new Constitution (Act 108 of 1996 as Amended) and post-apartheid progressive legislation by passing, amongst others, the Limpopo Local Government Laws Rationalisation Amendment Act 2007, that has greatly enhanced the process of assisting municipalities to develop by–laws.
* In collaboration with the Department of Justice, we are now assisting municipalities to build in-house capacity to draft their own by-laws to meet the constitutional threshold aimed at enhancing better and more effective service delivery on the ground.
* Developed municipal systems plan to improve information technology (IT) needs.
These achievements are milestones that point to one thing, the tide has turned. We've overcome most of our challenges and are now geared to consolidate our performance. Our destination is clearer. Kule ndi hune ra kho u bva hone, tsini ndi hune ra kho u ya hone.
The 2007 Community Survey by Statistic-South Africa paints a picture of remarkable improvement in the quality of life of our people. The survey shows that over the period of five years, we have made significant progress in arresting the cycle of poverty and underdevelopment.
We are happy to note that the percentage of households using electricity for lighting increased from 62,9% in 2001 to 81% in 2007. On the other hand, the percentage of households who have access to piped water increased from 78,1% in 2001 to 83,6% in 2007. At this rate, the targets we have set for ourselves in line with the United Nations' Millennium Development Goals (MDGs) are not far from being met. Honourable Speaker, even the statistics attest to the fact that the tide has turned. The next challenge for us is to consolidate our performance and maintain the momentum.
Honourable Speaker, Bagologolo bare: "Mahlaku a maswa a ema ka a mataala". lehlaku le letaala la rena ke yo mogwe wa balwela-tokologo ba bagolo mo kontinenteng ya rena ya Afrika, Amilcar Cabral.
In one of his classic works, titled: "History is a weapon," the renowned African patriot, anti-colonial campaigner and outstanding intellectual, Amilcar Cabral, singled out apartheid as one of the forms of exploitation that were meant in part to separate indigenous people and destroy their cultures.
Describing South Africa under apartheid as a concentration camp, Cabral correctly observed that: "The practice of apartheid takes the form of unrestrained exploitation of the labour force of the African masses, incarcerated and repressed in the largest concentration camp mankind has ever known."
Cabral continued to note, again correctly, that: "Culture is simultaneously the fruit of a people's history and a determinant of history, by the positive or negative influence which it exerts on the evolution of relationships between man and his environment, among men or groups of men within a society, as well as among different societies."
If we were to follow Cabral's thesis, we would all agree that, by reserving strategic land for the minority, the apartheid government effectively sought to divide and then destroy the cultures of the indigenous communities by confining them to perpetual servitude.
Now, with the majority of the population in a position to determine their political and economic future, we are obliged as "The Government of the People by the People" to redress the imbalances of the past, and one of those imbalances is the skewed housing market, which in the old days was meant to benefit only the few. And, because the transformation of the housing sector has been one of the priorities of this government from the moment it took office, we already have some statistics to refer to in terms of our record.
According to Statistics South Africa's Community Survey 2007, formal dwellings in Limpopo have increased from 72,5% in 2001 to 83,2% in 2007. Informal dwellings, on the other hand, have decreased from 7,1% in 2001 to 5,6% in 2007, whilst traditional dwellings decreased from 20,2% to nine percent in the same period. Our people are voting with their feet and moving to areas that offer them better economic opportunities.
The statistics point to a general improvement in the quality of life of the people, particularly with regard to the provision of houses. Since the dawn of democracy in 1994, government has built more than 2,3 million houses across the country. In the Limpopo province, the figure stands at close to 300 000. And we are still building. The facts don't lie, the tide has turned.
In the spirit of Business Unusual, our approach to housing is changing dramatically. Unlike the apartheid government that forcefully drove people away from the cities and towns, away from economic activities, our government, through the Breaking New Ground policy, is now bringing people closer to economic activities by building Integrated and Sustainable Human Settlements.
This policy will also entrench the idea of sharing settlement space regardless of race, class and social standing, thus promoting social integration. Closing buffer zones created by the apartheid spatial planning of townships remains the key focus area in the province.
The Integrated and Sustainable Human Settlements will also cater for what we call the "gap market", which is made up of middle-income earners, many of whom are teachers, nurses, police officers, etc. The Honourable Premier, Sello Moloto indicated to this House in his State of the Province Address earlier this year that: "Some of the officials in this 'gap market' are steeped in debts, thereby reducing their eligibility to housing loans."
In implementing the Breaking New Ground Policy, We have moved away from focusing on the top structure (house) to area development. We look at the development of the total area including schools, clinics, police stations and businesses. This then enjoins us to work together with sector departments towards integrated and sustainable human settlements. The tide has indeed turned.
Honourable Speaker, according to Statistics South Africa's large-scale Community Survey 2007, in Limpopo, the population has increased from close to 4,6 million in 1996 to just over 5,2 million in 2007, bringing the total percentage of population growth in the province during that period to 4,9%.
Overall, the statistics point to an improvement in the delivery of government services.
The Provincial Growth and Development Strategy (PGDS) demands of us to reduce congested accommodation and eradicate informal settlements. Progress report on the attainment of these PGDS goals in so far as they relate to human settlement is important. The Stats-SA Community Survey has indeed confirmed that formal housing has increased and that informal settlements are being reduced. All of us can agree that the tide has turned.
The economy is growing and business confidence is continually increasing, thereby generating unprecedented flows of investments in certain parts of the province. Rapid urbanisation is moving in tandem with the growth. In this regard, forward-planning is very crucial. The Housing Grant investment is informed by the National Spatial Development Perspective and the Breaking New Ground plan. Both emphasise the need to focus on migration of people rather than places. For indeed we maintain that development is about people.
The province is and continues to become confronted with challenges relating to poverty eradication, access to land for housing development, protection of housing beneficiaries from sub-standard work, eradication of corruption or the possibility thereof and the normalisation of the housing market to create a single residential property market.
To address all these challenges, we have taken the approach of multi-year planning and implementation of housing programmes. This approach allows us to acquire land and put services in one year and build houses the following year.
Honourable Speaker, housing affordability for the "gap market" is a growing concern, not only in Limpopo, but also nationally as well as internationally. Aggressive plans are already afoot to address this abnormality. In April 2008, we launched the first Integrated and Sustainable Human Settlement in Limpopo, in the suburb of Bendor, at Ext. 100. And we are already planning and implementing similar projects elsewhere in the province. For example, we are already implementing a Presidential Project in Mokopane. Other Integrated and Sustainable Human Settlements are planned for Lephalale, Tubatse and Phalaborwa.
The projects will enable communities to access shelter in good locations, in areas they would otherwise not afford because of the dynamics of the housing markets. This is a direct reversal of the apartheid settlement pattern, where black people were forced to live "vergenoeg" from places of economic activity. With these interventions, our people can truly attest that indeed, the tide has turned.
We have increased capacity within our project management unit. We have deployed three project managers per municipality. In addition to our partnership with the National Home Builders' Registration Council (NHBRC) and Cuban engineers, we require an upfront five percent guarantee of the total costs from developers that are building a minimum of 500 housing units. We have also included a penalty clause on all contracts that the Department signs with the developers with a view to improve the quality of houses. This is yet another indication that indeed the tide has turned.
Our programme of completing or unblocking what we refer to as blocked projects is continuing. These are unfinished Reconstruction and Development Programme (RDP) houses that we need to track down and ensure that they are finished and that eligible beneficiaries do benefit as originally intended. Significant progress has already been attained in this respect, and over 8 000 units were completed during the past financial year.
Honourable Speaker, in order to resuscitate value in the current dead housing assets of the majority of our urban communities, a concerted effort and unusual energy has been dedicated to fast-track the registration and transfer of houses in terms of the Extended Discount Benefit Scheme. It gives me great pleasure to announce an achievement that gives our people their dignity back. Whereas, the previous apartheid regime made it impossible for most of our people to own their four roomed houses by subjecting them to a ridiculous 99-years lease agreement over their properties. Our democratic government has brought about change to this appalling situation. A total of 3 327 title deeds will be given back to our people under the Discount Benefit Scheme. This is what happens when we put our hands on deck for faster development.
In an effort to enhance the capacity of our municipality to deliver housing, all our municipalities will shortly be assisted with the development of credible housing chapters in their Integrated Development Plans. Eventually, there will be a housing voice in each of our municipalities.
Honourable Speaker, in response to the target of the Provincial Growth and Development Strategy of raising the satisfaction level of our citizens from 34% to 80% by 2009 in housing delivery, we have intensified the communication around our housing consumer call centre and other departmental programmes.
Our people are responding positively to the toll-free number (0800 NTSHEBELE). The call centre averages 800 calls per week and the monthly reports consistently show that 99% of queries get resolved timeously. In fact, as a result of some of the enquiries we got through this call centre, it became apparent that the Department needed to embark on a normalisation project of verifying occupants of RDP houses across the province. The programme has just been concluded and all the cases that require further action will be handed over to law enforcement agencies.
We would like to take this opportunity to thank our developers for responding to our call for assistance whenever we do. At their own cost, they continue to build houses for destitute families. Indeed, these actions show that our people, specifically our housing stakeholders, understand the importance of partnering with government to accelerate housing delivery. It re-affirms that indeed we are in this together.
Honourable Speaker, as we talk of "The Year of Mass Mobilisation for a Caring Society" we should also stress the importance of partnerships in the housing delivery value chain, if we work in isolation from other strategic partners outside government.
At the end of the day, we say this government is the government of the people by the people. So, whether these "people" are in government or in business, they remain the "people" and, therefore, also need to contribute to nation-building concretely.
In an article titled "Finally, a home for family" on Monday, the 19th of May, The Sowetan newspaper wrote about Mme Mushaisani Rampampa, 59, of Guyuni village in Mutale, who has been living in a dilapidated one room mud house with her family all her life. The article says: "But on Friday her long-cherished dream of owning a house was realised when an entourage, led by Limpopo MEC for Local Government and Housing paid her a surprise visit". Rampampa became an instant beneficiary of a house through a project dubbed "Celebrity Build a House", an initiative launched by the Department in partnership with the SABC in Limpopo.
Sepedi se re "Tau tša hloka seboka di šitwa ke nare e hlotša.
In this regard, I would like to commend the South African Broadcasting Corporation (SABC) for responding to our call. We have entered into a strategic annual partnership to build five homes in all the districts of our province every year. If radio presenters are prepared to get their hands dirty, then all of us can surely get our hands dirty and respond to our people's needs.
We want to express our appreciation to the Limpopo SABC Regional Manager Victor Ravuandzwo and his team for contributing to the acceleration of housing delivery. The SABC is indeed living its motto of broadcasting for total citizen empowerment. Mr Ravuandwzo and the station managers of Thobela FM, Munghana Lo Nene and Phalaphala FM are with us today.
Also joining us today is of the beneficiaries of our partnership with the SABC. Mme Mokgaetji Jonanna Ntenne of Sebora Village at Aganang Municipality used to live in an old dilapidated mud structure. Today she's a proud owner of a 4-roomed house she and her children can call home.
Honourable Speaker, as is the case in the area of local governance, our overall performance in the area of housing shows that, even in the face of some mounting challenges, we are making progress. Some of the highlights include the fact that we have been able to:
* create over 15 500 housing opportunities, which include serviced sites, rural and urban housing units, emergency houses, Agri-Villages, Peoples Housing Process (PHP) units, unblocked projects and rental units. In addition, nearly 8 000 units are close to completion. This is over 22 000 in total
* create close to 2 000 jobs through Expanded Public Works Programme (EPWP)
* train over 200 youths in construction trades jointly with Umsobomvu Youth Development Programme, and the National Home Builders Registration Council (NHBRC)
* processed 3 327 deeds through Enhanced Extended Discount Benefit Scheme (EEDBS) to promote individual ownership of government houses that were built prior to 1994
* developed mixed-income high density integrated human settlements at Bendor Extension 100, in line with the Breaking New Ground (BNG) strategy
* ensure that the Presidential Project (Mokopane Extension 20), comprising of 1 957 housing units and other social amenities, gets underway
* 500 hectares of land is acquired within Lephalale Municipal jurisdiction, which is a high growth investment node, to develop different housing typologies and promote integration. To date, the township has been approved, comprising of residential, public facilities and business opportunities for development of integrated sustainable human settlements
* embark on a Housing Normalisation Programme, which is aimed at regularisation of occupation and possible eviction of illegal occupants
* conduct housing consumer education awareness in all the five district municipalities, targeting beneficiaries, officials and councillors
* host a successful Housing Indaba to elicit best practices in the housing sector, both locally and internationally, resulting in the Housing Indaba Resolutions being adopted by the Executive Council of the province
* ensured the passing of the Limpopo Housing Act and the establishment of the Housing Advisory Panel.
* in line with the Limpopo Rental Housing Tribunal Regulations of 2007, we are now proud to announce that this legislation aims to safeguard the rights of tenants where there are disputes between the landlords and tenants in the province.
These achievements are a testimony that indeed the tide has turned. But perhaps the biggest indicator of the remarkable progress we have made is the fact that we have spent 100% of our Housing Grant Budget, an achievement which has caught the attention of the national Minister of Housing, Dr Lindiwe Sisulu. In recognition of the outstanding achievement, Minister Sisulu announced during the launch of the Bendor Inclusionary Housing Project that our grant will be increased by R300 million this financial year, 2008/09.
We have accomplished all these milestones in the previous financial year, 2007/08. But, as I have already hinted, it wasn't a walk in the park. We have come across some challenges, which include the fact that:
* Government-owned land is peripheral – located far from socioeconomic amenities.
* Strategically located land is privately owned.
* Some municipalities have no land at all, e.g. Lephalale.
In order to address the land challenge, hearings on Housing Development Agency Bill are continuing. The aim of the Bill is to fast-track acquisition, release and development of residential land owned by the private sector, the state and public entities.
Honourable speaker, the increased migration of people to economic growth towns in municipalities such as Greater Tubatse poses a housing challenge to those municipalities. The search for better economic opportunities, influenced mainly by growth in the mining sector in the province, also means a search for accommodation.
As a department, working hand-in-hand with the affected municipalities, we are not only aware of the challenge. Inspired by the call to conduct "Business Unusual," to put "all hands on deck for faster development", we have developed plans that will be implemented in this financial year.
The following are our priority projects for the year:
* In response to the growth in the Lephalale area, the Department has acquired 500 hectares of strategically located land to be developed into township establishment in partnership with the Development Bank of Southern Africa (DBSA) in phases commencing this financial year. A budget of R17 847 000 has been set aside for bulk services.
* An amount of R130 122 000 will be spent on unblocking 3 000 housing units (blocked projects) located throughout the province.
* One hundred housing subsidies to the value of R4 350 600 have been set aside and reserved to accommodate veterans of the military struggle.
* In order to ensure well co-ordinated and planned human settlements, all the municipalities in the province are being assisted with the development of credible housing chapters in their Integrated Development Plans at a budget of R2 500 000.
* A budget of R3 773 585 has been set aside to ensure the transfer and registration of 1 500 human settlements to give security of tenure and title deeds.
* We shall be piloting the Limpopo province: Prevention and Control of Informal Settlement Bill in this financial year. We intend to further assist municipalities in our province to plan the delivery of houses to our people in a holistic, co-ordinated and structured way to promote growth and development in a sustainable manner.
Honourable Speaker, we are continuing to improve the capacity of the Department to carry out its mandate. Having attracted and employed some of the best skilled personnel, we conducted competency assessments on senior management. To address the gaps identified, we signed a Memorandum of Understanding (MoU) with the University of Limpopo to facilitate training to enable the senior management cadre to be more efficient and effective on financial management, project management, change management and service delivery innovation. We want to improve the departmental performance, taking into consideration the principles of value for money and return on investment. The tide has turned.
A total of 45 bursaries were awarded, mostly to students who are pursuing fields that have been identified as scarce skills in our Work Place Skills Plan, such as engineering and town planning. All this we do because we want to build a capable pool of staffers that will assist and capacitate municipalities moving forward.
We will continue to inculcate the culture of service excellence by implementing the Batho-Pele programme with a view of improving on service delivery, client satisfaction and resolution of clients complains. Our goal is to see municipalities achieving 100% compliance on Batho Pele principles.
Honourable Speaker, we have, in terms of our turn around time, put measures that allow us to make a commitment to pay contractors within 10 days after submission of necessary documentation which is an improvement from last year's 14 days.
Our budget will thus look like this for the year 2008/09:
Limpopo Department of Local Government and Housing Budget for 2008/09 financial year
Budget summary by programme
Voted amount: R'000
Administration: 140 353
Housing: 855 676
Local Government: 162 938
Total: 158 967
Budget summary by economic classification
Economic Classification
Voted amount: R'000
Current payments: 347 036
Compensation of employees: 220 661
Goods and services
: 126 375
Transfers and Subsidies: 800 614
Provinces and municipalities: 26 475
Households: 774 139
Payment of Capital Assets: 11 317
Buildings and other fixed structures: 2 367
Machinery and equipment: 7 231
Software and other intangible assets: 1 719
Total budget: 1 158 967
Honourable Speaker, before I conclude, it is important that I recognise, in front of this august house, some of the outstanding municipalities that performed well in the previous financial year in different areas of their work. The temptation, many of the times, is to look at municipalities as ailing institutions that are not able to carry out their constitutional mandate. Increasingly, we are seeing municipalities overcoming challenges related to the delivery of services to the people.
During our annual Vuna Awards ceremony last year, we recognised various municipalities for their good performance in the five Key Performance Areas as identified in the Local Government Strategic Agenda.
Congratulations to Capricorn District Municipality for winning as the best District Municipality in the province. Well done to Musina Municipality, the best local municipality. We need to also congratulate Maruleng Municipality for emerging as the best municipality nationally in the key performance area of Local Economic Development.
We hope other municipalities will learn from you and strive for excellence as we accelerate the delivery of services to our people. We encourage the sharing of knowledge and best practices amongst our municipalities. Le us all put our hands on deck for faster development.
Honourable Speaker, the past year has been a very difficult year for me and my family. Allow me to take this opportunity to thank all the honourable members in this house for their love and support when I was grieving the loss of my beloved husband and son.
I know my loss was your loss because the honourable Norman Mashabane belonged to all of you. Allow me to pay homage and tribute to him and the honourable Flora Masakona who also passed on last year. These were outstanding leaders of our people and their contribution to the struggle for freedom and nation building will not be forgotten.
A special word of gratitude goes to Mr Leshabe Rampedi, my Head of Department, for the sterling work he continues to do in leading this Department. To the entire team, Local Government and Housing, thank you for all the hard work and selfless manner in which you serve the Department and our people.
A word of appreciation goes to my family, in particular my children. Your love keeps me going.
Honourable Speaker, in her poem, "Look to this Day", Indian poet and dramatist Kalidasa wrote:
"The bliss of growth,
The glory of action,
The splendour of achievement
Are but experiences of time
For yesterday is but a dream
And tomorrow is only a vision
And today well-lived, makes
Yesterday a dream of happiness
And every tomorrow a vision of hope
Look well therefore to this day
Such is the salutation to the ever-new dawn!
All of us can agree that the tide in this Department has indeed turned. We have made major progress in implementing our programmes as per our mandate. Those achievements may seem to be just an experience of time, but they certainly make yesterday a dream of happiness.
We agree with Kalidasa that what we do today determines what will happen tomorrow and how we'll look back at yesterday. It is what makes tomorrow a vision of hope. The call therefore is for all of us to do be ready to conduct "Business Unusual, to put all hands on deck for speedy change" as we carry on the business of "Making Local Government Better" as well as ensuring that there's housing, security and comfort for all.
The former President of Tanzania, Julius Nyerere urged us not to run away from the challenges we face, not to seek refuge in faraway locations, hoping that the multiple challenges we face will fade away. He said we must not run away; and, yes, we won't run away. We will build this country so as to inspire the people to be hopeful for a better tomorrow.
I thank you
Issued by: Department of Local Government and Housing, Limpopo Provincial Government
22 May 2008