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THURSDAY, 20 AUGUST 2009
PROCEEDINGS OF THE NATIONAL ASSEMBLY
The House met at 14:02.
The Speaker took the Chair and requested members to observe a moment
of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Mr K S MUBU: Speaker, I hereby give notice that on the next sitting
day of the House I shall move:
That the House debates the ongoing escalation in the numbers of
spurious colleges and schools in South Africa, and the lack of
proper regulations, and to come up with solutions.
Mr M SWART: Speaker, I hereby give notice that on the next sitting
day of the House I shall move the following motion:
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That the House debates the current unsatisfactory situation where
government officials are involving themselves in the adjudication
of state tenders for their own benefit, and formulates possible
UNTIMELY DEATH OF PANDELANI “SPARKS” RAMAGOMA
The CHIEF WHIP OF THE MAJORITY PARTY: Speaker, I move without
That the House –
(1) notes with profound sadness the untimely and tragic death of
Comrade Pandelani “Sparks” Ramagoma on Monday, 10 August
(2) further notes that Ramagoma was involved in a car accident on
Monday, 10 August 2009, when travelling on the N1 North near
Makhado (Louis Trichardt) in Limpopo;
(3) recognises that he was the MEC for Public Works in the
Limpopo Provincial Government, a member of the Limpopo ANC
Provincial Executive Committee and Chairperson of the South
African Communist Party, SACP, in Limpopo;
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(4) recalls that at the time of his death he was leading the
Expanded Public Works Programme, EPWP, in Limpopo, one of the
South African government’s short to medium-term programmes
aimed at the provision of additional work opportunities
coupled with training for the poor;
(5) acknowledges that Ramagoma was a determined scholar who
obtained, at the University of South Africa, a Diploma in
Public Administration, a Bachelor of Arts in International
Politics and Development Studies and a Masters degree in
Development, MDev, and was finalising his MBA;
(6) remembers that the South African public has lost a committed
patriot and son of the soil, and a dedicated and confident
cadre who never failed in whichever area he was deployed; and
(7) conveys its condolences to the Ramagoma family, the African
National Congress, the South African Communist Party and the
broader working class movement.
CONGRATULATUIONS TO CASTER SEMENYA ON WINNING 800 METRE WORLD
ATHLETICS CHAMPIONSHIP TITLE FOR WOMEN IN BERLIN
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Mr M J ELLIS: Speaker, I move without notice:
That the House –
(1) notes that Caster Semenya of the University of Pretoria won
the 800m World Athletics Championship title for women in
Berlin last night;
(2) further notes that even though she is surrounded by
unnecessary controversy, she still managed to achieve this in
the fastest time recorded this year;
(3) acknowledges the fact that it is the first time in six years
that a South African athlete has managed to win this
prestigious title; and
(4) extends its wholehearted support to the other South African
athletes still competing at the championships.
CONDONATION OF SUBMISSION TIMEFRAMES AND CONSIDERATION OF SUCH
SUBMISSIONS BY CONSTITUTIONAL REVIEW COMMITTEE
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The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, hon Deputy
President, I move the draft resolution printed in my name in the
Order Paper, as follows:
That the House, notwithstanding Joint Rule 102 (a) and (c), which
provide inter alia that the Constitutional Review Committee must,
annually before the first day of May, invite the public to submit
to the Committee written representations on any constitutional
matter, and that the Committee must consider these at the start of
the third term of a year, subject to the concurrence of the
National Council of Provinces, condones the timeframes adopted by
the Committee for the public to make submissions for 2009, namely
19 July to 19 August; and resolves that the Committee proceed to
consider the submissions as soon as possible after the closing
EXTENSION OF DEADLINE FOR NOMINATION OF PUBLIC PROTECTOR
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move the draft
resolution printed in my name on the Order Paper, as follows:
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That the House, notwithstanding the resolution it adopted on 25
June 2009, resolves to extend the deadline by which the Ad Hoc
Committee to Nominate a Person for Appointment as Public Protector
has to report, to 11 September 2009.
TIME ALLOCATION FOR POLITICAL PARTY RESPONSES
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, hon Deputy
President, I move the draft resolution printed in my name on the
Order Paper, as follows:
That the House resolves that, notwithstanding Rule 106(5), the
time allocated for party responses to executive statements for the
remainder of the Fourth Parliament be as follows: ANC: 9 minutes;
DA: 4 minutes; Cope: 2 minutes; IFP: 1 minute; and all other
parties 1 minute each.
Mr M G ORIANI-AMBROSINI: Mr Speaker, on behalf of the IFP I rise to
object and request an opportunity to motivate the objection.
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The SPEAKER: The objection of the IFP has been noted.
[Interjections.] Go ahead with the motivation, but only for one
Mr M G ORIANI-AMBROSINI: May I motivate, Mr Speaker?
The SPEAKER: Go ahead, but only for one minute.
Mr M G ORIANI-AMBROSINI: Thank you, Mr Speaker. We object on two
grounds. Firstly, we object to the practice of replacing and
amending a Rule of our National Assembly Rules for the entire term
of Parliament without due process, because in that way we can very
well amend all the Rules.
Secondly, the Rules give equal time to each political party and this
amendment moved, is contrary to the prescription of the Constitution
to protect minorities and give equitable time rather than
proportional time to minorities. By reducing the three minutes which
each political party has in terms of the Constitution to one minute,
really eliminates the opportunity of meaningful debate on
significant aspects of these proceedings. Thank you.
Mr S N SWART: Thank you, Speaker. The ACDP also wishes to lodge its
objection. May I also address you on this issue?
The SPEAKER: Also one minute, hon member.
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Mr S N SWART: Speaker, I also want to join the sentiments expressed
by my colleague from the IFP, that it is ludicrous to participate in
a discussion or comment on the statement made by a Minister in one
minute. The Minister in this next instance will be given 20 minutes
and we believe that it is also unconstitutional that parties should
be given one minute to respond. Thank you.
The CHIEF WHIP OF THE MAJORITY PARTY: Speaker and Deputy President,
I think it will be important that we don’t fabricate a new concept
of due process and try to apply it to a House that already knows
what due process is. In this House, we have a structure that is
called the “Chief Whips’ Forum” and that is where, in terms of due
process that is required, we process the issues.
There was a meeting of the Chief Whips’ Forum, where the parties
were represented, including the IFP, which is introducing this new
concept of due process, and we agreed on the time allocation that we
have just proposed. So, all we are now doing is making a formal
proposal that was already adopted by all the parties that were
I think, hon Ambrosini, as a lawyer you will very well know that if
you are absent and we are quorate we are entitled to take decisions,
and we took this decision that we are putting before this House.
Thank you. [Applause.]
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The SPEAKER: Hon members, since there has been objections, I now put
the question. Those in favour will say “aye” and those agaist will
say “no”. The ayes have it.
Agreed to (Inkatha Freedom Party and African Christian Democratic
RECENT DEVELOPMENTS REGARDING THE IMPLEMENTATION OF THE FRAMEWORK
FOR SOUTH AFRICA’S RESPONSE TO THE INTERNATIONAL ECONOMIC CRISIS
The MINISTER OF ECONOMIC DEVELOPMENT: Hon Speaker, hon Deputy
President, and hon members, the international economic crisis and
the local recession threatens to wipe out our economic gains. If the
trends continue, we could soon find ourselves back to where we were
five years ago.
Our gains are being seriously eroded but we will recover if we take
the right steps. We need to use the crisis as an opportunity to
mobilise the nation around a programme to defend the economy and to
further strengthen it and to defend jobs.
I am addressing the House today to share with hon members the steps
that government is taking to address what is the most serious
economic challenge since the advent of democracy. The recession was
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triggered by the global economic crisis and South Africa lagged
behind many other economies in the timing of the impact on our
production, employment and economic performance. Initial signs were
evident from late last year, but the economic data released this
year has confirmed the scale of the impact on our economy.
We have recently experienced what has been described as the worst
quarterly economic performance in 25 years with serious declines in
both manufacturing and mining production. The latest manufacturing
data, for June this year, shows that estimated monthly manufacturing
production has shrunk by 17,1% and monthly sales have dropped by
19,6% compared to a year ago. Second quarter production shrunk by
18,7% and sales dropped by 20,2% compared to a year ago.
Manufacturing output has been declining since about mid last year.
It has now reached levels last seen some five years ago. If these
trends persist, it means that four years of modest manufacturing
growth since January 2004 has been reversed by the dramatic decline
in the physical volume of manufacturing production in the past 12
months. June statistics, the latest that we have, have indicated a
7,3% drop in mining compared to the same month a year ago.
Employment data have shown a large increase in unemployment. The
Quarterly Employment Survey of Stats SA for the first three months
of this year recorded 179 000 job losses.
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The Labour Force Survey for the second three months of this year
recorded 267 000 job losses and noted that 302 000 people have
become too discouraged to seek employment. Retail sales have
declined, with June 2009 figures showing a 6,6 % drop in sales
compared to the same month a year ago. This is, therefore, taking us
back to mid-2006 levels. As retrenchments and job losses increase,
they impact on consumption, leading to lower demand, which could
result in a renewed round of job losses.
The total output of the nation, as measured by GDP, declined by 3%
for the second quarter of 2009. We have now had three successive
quarters of a decline in output. Company capacity utilisation, which
measures the extent to which we use the available productive
capacity of the nation’s workplaces, has declined as has the stock
of capital in a number of manufacturing sectors. Capacity
utilisation is at levels last seen in 2001 and we are deeply
concerned at the prospect of a permanent decline in productive
capacity as factories close rather than simply reduce output.
Liquidations and insolvencies show a worrying trend, as do increased
claims from the Unemployment Insurance Fund, UIF.
In these trends, South Africa is facing the same pressures felt by
many other countries with the most serious economic challenge since
the Great Depression. What started as a financial crisis has rapidly
become a crisis in the productive sector of the economy, and
employment has been hit particularly hard.
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With both developed and developing countries, monetary and fiscal
policy has been concentrated on shoring up aggregate demand as the
impact of the credit bubble collapse impacted on the real economy.
Interest rates have been cut and some central banks have used
quantitative easing to further respond to the crisis.
Public sector spending has been ramped up and countries now run
large and growing budget deficits. The US and the UK, for example,
are now running deficits of 13% and 14% respectively. Global
prospects are still uncertain, with evidence that the fragile signs
of recovery are largely driven by the effects of the dramatic and
co-ordinated government stimulus packages that have pumped liquidity
into the global economy at levels not seen in our generation.
International experience has shown that financial crises leave large
employment and social damage in their wake even when economies
recover. Employment growth in particular lags economic recovery,
sometimes by considerable periods of time. It is in this context
that government has stepped up efforts to address the impact of the
global crisis on our economy and our people.
Fiscal policy has remained expansionary in spite of falls in tax
revenues, and the Reserve Bank has cut interest rates repeatedly
over the last six months. Earlier this year, government, organised
labour, business and community organisations adopted the Framework
for South Africa’s Response to the International Economic Crisis.
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That document sets out our collective response to the international
economic crisis, which is widely recognised as the deepest and most
serious economic crisis in at least the last 80 years.
The framework, which provides the basis for a wide range of actions
needed to mitigate the impact of the crisis on the country and our
people, was founded on the following broad principles:
The risk of unfairly placing the burden of the economic downturn
on the poor and the vulnerable must be avoided; activities aimed
at strengthening the capacity of the economy to grow and create
decent jobs in the future must be protected and supported as far
as possible; planned high levels of investment in the public
sector, particularly infrastructure, must be maintained and the
private sector must be encouraged to maintain and improve,
wherever possible, their levels of fixed direct investment and
continue with corporate social investment programmes; and
interventions must be timely, tailored and targeted as is
The Framework recognises the social partners’ collective
responsibility to work together to withstand the crisis and ensure
that the poor and the most vulnerable are protected as far as
possible from the impact of the crisis.
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Noting the country’s well-developed and advanced system of social
dialogue, a strong institution in the form of Nedlac and a tradition
of working together as constituents to address the social
challenges, it seeks to draw on these strengths in developing and
adjusting South Africa’s response to the crisis and implementing its
various commitments. In addition, the framework recognises the
importance of ensuring that the economy is ready to take advantage
of the next upturn and that the benefits of such growth are shared
by all our people.
In today’s statement, I would like to brief hon members on the
progress we have made in implementing the framework thus far. In so
doing, I would like to draw attention to the context within which
this implementation has taken place and, in particular, to point out
that following the appointment of a new Cabinet and the
reorganisation of government functions, government has worked
closely with social partners to speed up implementation.
President Zuma highlighted the centrality of this work in his state
of the nation address on 3 June 2009, when he said, and I quote:
It is important now more than ever that we work in partnership on
a common programme to respond to this crisis. We take as our
starting point the Framework for South Africa's Response to the
International Economic Crisis, concluded by government, labour and
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business in February this year. We must act now to minimise the
impact of this downturn on those most vulnerable.
Following the state of the nation address, the task teams provided
for in the framework were reactivated. In early July, we agreed to a
set of priority areas and all parties rolled up their sleeves to
produce action plans to respond to the crisis.
There was a new energy and focus to the response. In all, hon
members may be interested to know that 19 meetings have been held
since 1 July by the various committees responsible for forging a
united position - this is some three meetings a week. More
importantly, the energy produced solid results.
On 5 August, the leadership team met with and briefed President Zuma
on the progress we had achieved up to that point. That leadership
team will be meeting again tomorrow.
To date, we have prioritised the following 12 areas of work: a
training layoff scheme for workers at risk of retrenchment;
combating customs fraud; support for distressed sectors; social
assistance, including child support grants and old age pensions;
stronger competition in the food supply chain; food relief;
assistance by the Industrial Development Corporation and refocusing
its mandate; availability and flow of credit; Expanded Public Works
Programmes; leveraging jobs from public procurement; expanding
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public sector employment in areas of critical need; and public grant
conditionalities to ensure that state support achieves the desired
In six of these areas, we concluded agreements that are now being
implemented: Firstly, to meet the challenge of companies retrenching
workers as a result of loss of orders due to the recession we set up
a National Jobs Fund to finance a training lay-off scheme.
The scheme entails enrolling workers in training programmes for a
period of up to three months. The principle behind the scheme is to
use the period of industrial slack to train and reskill workers.
The scheme will be available to workers earning up to R180 000 a
year, and the key design elements of the scheme are that it is
available to workers as an alternative to retrenchment. During the
period of the scheme the employment relationship with the company is
maintained, a training allowance of 50% of basic wages up to R6 239
per month will be paid to workers on the scheme, and participating
employers will carry the cost of a basic social package to ensure
that death, disability and funeral benefits are not suspended during
Training is left to industries and companies to define, but we
provided three guidelines: The training should be of value to the
company concerned; it can address generic and adult literacy and
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numeracy needs; and it is an opportunity to roll out and disseminate
information and communication technology skills on the shop floor.
The Minister of Labour’s work in mobilising all the resources of his
Department and reporting agencies has been invaluable in making it
possible to launch the scheme in September this year. An amount of
R2,4 billion will be placed in the fund, drawn from resources in the
National Skills Fund and the UIF.
In order to ensure its successful implementation, it will rely on
the collective efforts of a number of state entities: the NSF and
the UIF; the Setas; the CCMA; some government departments such as
the Department of Labour, responsible for co-ordinating and
finalising the drafting of an implementation guide in collaboration
with the CCMA and social partners; the Department of Trade and
Industry, responsible for ensuring that our distressed sector
support is co-ordinated with the training lay-off scheme; and the
Economic Development Department, responsible for assessing the
economic and developmental impact of the training lay-off scheme.
Most importantly, it requires partnerships between business and
labour at workplace level.
The training lay-off scheme is the first of its kind that government
has launched and we have designed its implementation to be as simple
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A key implementation agency will be the CCMA. The CCMA will help
companies and unions to conclude their training lay-off agreements.
The CCMA has now trained about 250 staff members, mainly
commissioners, on the training lay-off scheme and its
implementation. It has a toll-free number and has published a guide
to the training lay-off scheme on its website.
The Setas have been asked to set aside resources for the financing
of the training courses themselves and to identify appropriate,
short, focused training courses. Special board meetings of Setas are
now being convened and a number of Setas have advised they will take
part in the training lay-off scheme.
I call on the Seta board members from business and labour to do
everything in their power to ensure full and effective participation
by Setas so that workers and companies can obtain the benefit of the
training lay-off scheme as soon as possible. Indeed, Speaker, here
is an opportunity for Setas to show their value-add and to convince
even the sceptics that they are a vital part of the training
delivery machinery and are flexible enough to respond to new and
Secondly, to address high levels of illegal imports and customs
fraud that has led to many thousands of job losses, the capacity of
SARS to address customs fraud has been strengthened. The Minister of
Finance has facilitated a renewed focus by SARS on measures to
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improve its impact. SARS has now reported significant progress in
respect of investigations and the confiscation of goods.
A number of companies are currently under investigation for
smuggling, round-tripping, abuse of incentive arrangements, quota
fraud, rebate item abuse and under-declaration of value.
In the clothing and textiles sector, by way of illustration, some
immediate outcomes of the antifraud campaign are as follows: In
respect of, smuggling, four companies are being investigated and the
intention is to initiate criminal proceedings; round-tripping, 15
companies are being investigated and the support of neighbouring
customs is required to finalise these investigations; export
incentive abuse, 14 companies are being investigated and some duties
have already been recovered; counterfeits, during raids a number of
goods have been seized; quota fraud, four companies are being
investigated and will be criminally charged; rebate item abuse,
three companies are under investigation to recover duties; and in
respect of under-declaration, five companies are under investigation
and will be criminally charged.
Thirdly, to address huge job losses in certain sectors of the
economy, we have facilitated discussions at sector level between
business and labour, and measures to address their immediate
problems have been identified. These include support for distressed
companies in the automotive sector; a rescue package for the
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clothing and textiles industry; increased incentives for the
manufacture of capital equipment; transport equipment and fabricated
metal products linked to South Africa’s Infrastructure Development
Programme; and payments by government to small, medium and micro
enterprises and other businesses within 30 days.
In the auto sector, business and labour have formulated a commitment
that provides that companies receiving crisis-related assistance
must commit to a moratorium on retrenchments for the duration of the
assistance period with a provision that variation to this
commitment, in cases where it is necessary for a firm’s survival, be
accompanied by requirements for independent verification of
financial and other relevant information. So, our social partners
have really been working hard.
Fourthly, to address the problems of access to credit and working
capital, the IDC has made R6 billion available over the next two
years to respond directly to the crisis. Some applications have
already been received and approved.
The IDC has 49 funding applications in the pipeline, 23 of which are
from existing IDC clients while the remaining 26 are from new or
potential IDC clients.
From 1 April 2009 to date, eleven financing applications from
distressed companies totalling R743 million have been approved. We
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will now work with the IDC to improve the employment impact of its
Fifthly, to address food price pressures on consumers at a time of
falling family incomes, the Competition Commission’s investigations
into and prosecution of firms in the food supply chain alleged to
have engaged in various forms of prohibited anticompetitive conduct
have been stepped up.
Seven parts of the food supply chain are now the subject of
attention by the competition authorities: in respect of bread, the
commission is prosecuting two separate cases that have now been
consolidated into one case, and is investigating a new case; with
the milling of maize, the commission is referring the case to the
Competition Tribunal for prosecution; in the dairy sector, a case is
before the tribunal; with poultry, one case is before the tribunal,
with the wider conduct being investigated by the commission; in
fertilizer, settlement has been reached with one company, with
others being prosecuted; in fats and oils, there is an investigation
by the commission; and with regard to supermarkets, the commission
has commenced its investigation. These are firm and clear steps
taken by the commission to address food price increases.
Finally, Speaker, to address the growing debt faced by many
consumers and households, the National Debt Mediation Association, a
business initiative to assist over-indebted consumers, has been
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established to provide rules, standards and processes to address
These six measures, hon members, constitute a solid start to our
joint endeavours, and I wish to thank the leadership of the social
partners and government departments for their hard work to have
I wish to advise this august House that we are now simultaneously
working on two fronts: to properly implement the measures we have
announced, and to identify new areas in the framework that can
progress to a conclusion.
We recently briefed MECs of six provinces, KwaZulu-Natal, Gauteng,
Western Cape, Eastern Cape, Free State and Limpopo on the package
and they have endorsed the approach in the framework. Provinces will
now identify ways in which they can align their own responses to the
recession with the six areas that have been identified so that these
measures can have the biggest possible impact. The province of
KwaZulu-Natal has taken the lead in convening an economic recovery
and jobs summit.
The ministerial cluster on Economic Sectors and Employment was
convened this week to receive a report on implementation, and a
number of areas were identified that needed to be addressed in the
next phase. They include strengthening the use of co-operatives to
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address the crisis, fast-tracking work on green jobs, identifying
measures to deal with persons in vulnerable situations, including
women and rural and informal sector workers.
In particular, we want to find ways of drawing more South Africans,
through their community and NGOs structures into the partnership to
respond to the recession. [Time expired.] [Applause.]
Dr D T GEORGE: Speaker, a rescue plan in response to the
international economic crisis implies the need for an immediate
response to an immediate threat. Government did not respond
immediately, neither was its response aimed at the immediate
concerns arising from the economic downturn.
There is a fundamental difference between structural determinants
and cyclical changes - a conceptual divide that government would do
well to understand. Structural problems require long-term policy
solutions, while cyclical issues require action in the short term.
This difference should inform the approach that we need to take in
determining the response to our crisis.
The global economic downturn is a cyclical phenomenon, where
financial markets stopped functioning as they should, due to a
shortage of liquidity. It was a monetary crisis requiring an
immediate monetary solution. That is why governments intervened to
act as the bank of last resort, and thereafter introduced stimulus
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packages in an attempt, in the short run, to smooth the worst of
this severe downward phase of the economic cycle.
What is our government doing? The Minister mentions a very long list
of activities that government plans to implement to address the
impact of the crisis. In particular, these include strengthening the
capacity of the economy to grow, public sector spending, corporate
social interventions and cushioning the impact on the vulnerable.
He mentions training initiatives, addressing competition, expanding
public sector employment, and training for retrenched workers – a
very broad sweep of activities, required for the functioning of an
economy. Clearly, our government is focusing on structural problems,
which it should have tackled a long time ago, rather than addressing
the immediate cyclical issues.
A year ago, the International Panel on Growth presented its findings
on the structural problems in our economy. Its key findings were
that very few South Africans were working, the less skilled needed
to be absorbed into the economy, and the binding constraints on the
speed limit of our economy needed to be relaxed.
These problems require our attention, but it is not the place of a
temporary rescue plan to try and address deep-seated problems in the
economy. These problems can be resolved through systemic structural
changes, such as a liberalised labour market that will encourage job
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creation, scrapping the ineffective Seta system in favour of an
effective apprenticeship system, and trade policy that accommodates
small and large exporters.
If these structural problems are not addressed by means of adequate
structural changes, then our economy will not be able to take full
advantage of the next upward phase of the business cycle. Resolving
these structural problems will take time even if government commits
itself to action, but this will not resolve the cyclical problem
that we have now.
South Africa is no exception; many businesses cannot draw credit to
invest or pay their own suppliers, and are thus forced to close down
and retrench workers. Keeping economic activity alive through this
cycle will retain jobs and this is where government should focus its
efforts. Business enterprises need access to appropriate credit
facilities that they cannot obtain from conventional sources. If the
government had responded quickly, South Africa would not have seen
the number of job losses experienced thus far.
Across the world, unions and business are making agreements on how
best to keep people in jobs. We need to have these conversations in
South Africa, and government needs to make the environment easier to
do this. Government needs to respond now by taking resolute action
on the immediate threats to our economy and, in this way,
demonstrating that it is willing and able to perform its role as
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facilitator, not controller, of economic activity. Thank you.
Mr L S NGONYAMA: Speaker, hon Deputy President, hon members, we
thank the government for this initiative to help the South African
people to grow and restore our economy.
In the light of the current domestic and international economic
crisis, we need an extraordinary plan, commitment and discipline.
However, we need to remain cautious and vigilant as far as the
opportunity that lies before us is concerned, because a grant of
this magnitude can create a marked difference for the people of
It is within this context that we propose that the two most
important areas we need to consider are the small to medium
enterprises that employ the largest portion of the South African
workforce, and the shortage of skilled workers in specific
industries and we therefore call for targeted training.
The questions we need to ask are the following: What type of
intervention will yield the most important and effective results?
What instruments do we need to use? Which of the industries in our
economy have the greatest potential to anchor it? How can we best
provide skills to satisfy the demand in these industries to ensure
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The issue, therefore, is sustainability. Training without guarantee
of absorption can be very counterproductive. How then do we support
SMMEs to weather the current economic climate and prevent further
What we need, at this point, is an activist state, a state that is
disciplined, a state that is rooted in ensuring that we deliver on
the needs of the people.
At the current stage, in our view, we need interventions in five
areas. These are agriculture, infrastructure development,
manufacturing, the service industry and knowledge-based industries.
This implies truly targeted training.
We propose that a detailed study be undertaken to ensure that the
allocations made are used to their fullest potential for the
recovery and sustainable growth of our economy. We also propose that
a panel of experts be established to determine the areas that
represent the greatest need. This panel of experts should study the
weaknesses that we have experienced in South Africa – the weaknesses
of Setas that have failed our country.
It is also essential to engage our society at large. We want to
submit that, while we agree with the participation process that the
Minister has alluded to, a participatory mood within this context
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has not been created in the country. We have not seen full
participation of the people. Thank you. [Time expired.]
Mr M G ORIANI-AMBROSINI: Mr Speaker, in my ridiculously short minute
I can only note that the government’s response, as outlined by the
Minister, seems to be based on the notion of a temporary crisis, a
period of bad weather, a cyclical period of downturn which will
bring us back to where we were before it all started. It therefore
reflects the notion: Let’s try to freeze the present situation until
the weather improves and we will be fine. I hope he gets it right.
I, however, beg to differ. I think that this crisis is a structural
crisis. It needs to be addressed in the context of what can survive
in a future environment characterised by massive manufacturing
capacity having been moved around the world by the effects of the
A crisis is a time for opportunities. It is a time in which bold
actions can be taken. It is a time to look at where South Africa is
going to be after the crisis - whether we will develop the capacity
to produce products for the global market.
In that sense, government should also take the opportunity to take
bold measures to develop an industrial policy for the country - a
new industrial basis for after the crisis. This might not seem to be
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the time to do so, but it is the time in which the need for survival
may press us to take such bold action.
By the same token, let us liberalise the market, as Dr George was
saying. Let’s finally fulfil the promise of getting rid of exchange
controls, which has been echoing in this Chamber for many years.
Let’s look at the skills within the market, the monopolies ...
The SPEAKER: Hon member, your time has expired.
Mr M G ORIANI-AMBROSINI: My one minute?
The SPEAKER: It’s more than one minute, hon member.
Mr S N SWART: Speaker, the ACDP welcomes the briefing by the
We wish to point out that today’s Financial Mail states: “It’s a
sign of how bad our economic condition has become when economists
express relief that real GDP contracted by only 3%.”
And we know we still have a long way to go, with the economy
expected to contract by a full 2% this year.
For South Africa to emerge from recession, manufacturing and retail
must recover, requiring a global recovery to raise demand for our
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manufactured exports and revival for the stressed South African
The former appears to be on track if you look at Japan, Germany and
France, which are exiting recession, and the US, UK and Europe,
which are showing promising signs – they are speaking of “green
However, the recovery for the South African consumer will take much
longer, with household debt levels at record highs and ongoing job
We believe that the measures announced today by the Minister will go
a long way. The challenge, however, will be in the implementation.
They must be properly implemented; therein lies the challenge. I
Ms E M COLEMAN: Speaker, hon Deputy President, hon Deputy Speaker,
members of the executive, hon colleagues, I greet you all. Let me
start by appreciating the Minister’s initiative of tabling this
statement. I believe it will help to clarify issues around the
framework response to the public and the people affected so that, in
turn, those affected can begin to take the necessary steps to
provide for their own wellbeing.
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In the same breath, I would also like to take this opportunity to
applaud government, under the leadership of the President, together
with other stakeholders, our social partners, who participated in
this agreement process, on their sterling work. It takes people who
have themselves experienced such difficulties to be able to
adequately respond in the manner you have. In other words, to
understand it, you should have lived it. Otherwise you will respond
like other members here are responding. This is what we mean when we
say: Working together, we can do more.
I also want to remind you that the social partners are also from the
business sector, unions and civil society; it is not only
government. Therefore, it would be wrong to direct all issues to
government, because this is the country’s response and the country,
through various social partners, have participated in this
particular response plan.
The framework response, as reported today, is highly commended and
it could not have come at a better time. We all know that the most
severely affected in this regard are the previously disadvantaged
individuals, those who come from the poorest of the poor communities
and backgrounds. Hence, we will urge that the framework response,
objectives and intentions are implemented without failure.
From our side, as legislators, we will be following the
implementation process and we will help, through our oversight, to
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ensure that no worker is compromised by either government
bureaucracy or the companies concerned, under the training lay-off
We appreciate the fact that no additional money is going to be
transferred to the training lay-off scheme from the National Revenue
Fund. This is due to government’s appreciation for the fact that we
are already in a recession and cannot continue to overburden the
government fiscus and should rather use flexible means to achieve
the intended goal. This is applauded and should be encouraged,
especially due to the fact that amongst the participants were
stakeholders from the civil society who ordinarily would have
expected government to foot the bill without any compromise.
We also request the Minister and the task teams involved in the
crafting of this response plan to ensure that the process after the
companies’ applications is not derailed or does not take longer than
anticipated, and that Setas’ courses must respond to our economy’s
We are excited about the fact that the implementation of the plan
will start as early as September this year, and that there are
companies that have already applied for both the training lay-off
schemes and the IDC’s stimulus fund for the distressed sectors.
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We need, as the House, to support this initiative and this
particular response plan, because our role is to ensure that that
plan gets implemented. We should, therefore, strengthen our
oversight role so that the timelines, as set by government and its
social partners, are met without any failures. I want to conclude by
commending the steps taken, especially against those who are
defrauding customs. Halala, government! Continue with the good work.
Thank you very much. [Applause.]
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SCIENCE AND
TECHNOLOGY – SHORTLIST OF CANDIDATES FOR APPOINTMENT TO BOARD OF
HUMAN SCIENCES RESEARCHE COUNCIL
Mr E N N NGCOBO: Speaker, hon Deputy President, hon Minister of
Science and Technology, hon Ministers and Deputy Ministers present
here, hon members and the guests of Parliament present today, CEO of
the HSRC, director-general and your delegation – if at all they are
here – please allow me, on behalf of my Portfolio Committee on
Science and Technology, to present to this honourable House a
reconstituted shortlist of candidates for the board of HSRC that
will govern this important research institution. This institution
forms part of the Department of Science and Technology family of
20 AUGUST 2009 Page 34 of 121
The list of candidates who are being presented before this
honourable House today is a culmination of a painstaking exercise by
the Portfolio Committee on Science and Technology over a period of
about a year to date. With this exercise we sought to update section
2 of the Human Sciences Research Council Act of 1968, Act No 23 of
1968, through the repealing of section 8 of the Human Sciences
Research Council Act of 2008, Act No 17 of 2008.
The objective of this latter amendment has been to promote human
sciences research of the highest quality in South Africa in order to
improve the understanding of social conditions and the process of
social change connected with the political transformation processes
that have been happening in our country since the advent of
democracy, as led by the ANC, in 1994.
The HSRC board will, in accordance with this amending Bill, consist
of a chairperson designated by the Minister and no less than six but
no more than nine members plus the CEO, who is a member by virtue of
his or her office.
The Minister, after appointing a panel of experts to compile a
shortlist of no more than 20 persons from the nominees, will then
refer the shortlist to the portfolio committee for concurrence, in
accordance with the provisions of this Act.
20 AUGUST 2009 Page 35 of 121
Indeed, the portfolio committee recommended that the list of
candidates be revisited in order to reflect the few recommendations
advanced by the portfolio committee on that day of the presentation.
The Department of Science and Technology indeed addressed those
concerns and submitted a revised list to the portfolio committee.
The portfolio committee then concurred with the revised list.
As an institution of research, the HSRC is tasked with a variety of
responsibilities to promote research in the field of human sciences
in order to improve the quality of life of all our people. These
range from research analyses of housing delivery problems to
children-led households resulting from the HIV and Aids pandemic
challenges, poverty and unemployment challenges, analyses of
economic and social gains arising from the 2010 Fifa soccer games,
political and economic stability challenges for our African region,
etc. There’s a long list of what the HSRC does.
It is indeed an important research institution when it comes to
research on the sociopolitical or economic challenges facing our
nation and the world. It is therefore imperative that we establish a
board of capable men and women that would be up to the challenge. We
think that the shortlist presented to you today consists of people
who are up to that challenge.
It is, therefore, my pleasure to appeal that this House ratify the
shortlist of candidates for the board, as presented in the ATC of 9
20 AUGUST 2009 Page 36 of 121
July 2009, page 48, as it is only when we work together that we can
do more. I thank you and especially my fellow portfolio committee
members, who have worked so hard over the said period to conclude
this task. Thank you very much. [Applause.]
There was no debate.
Declarations of vote:
Ms S V KALYAN (DA): Speaker, the chairperson of the portfolio
committee has outlined the role of the HSRC board, but the DA would
like to use this opportunity to raise a few matters of concern.
First of all, the contracts of members serving on the board expired
on October 2008 and owing to parliamentary delays, the matter was
only referred to the Speaker for consideration on 15 April 2009, by
which time the third Parliament had already risen.
Was it a case of passing the buck or a case of the failure of
Parliament to do its oversight work efficiently? The x-criterion for
representivity was initially not applied, and the department noted
these concerns and came back with a more representative list.
Some of the qualifications of the shortlisted candidates do not
comply in the strictest sense with the requirements as stipulated in
the Act. Questions for the Minister to consider when making her
20 AUGUST 2009 Page 37 of 121
final choice are: What value do persons who serve on a wide range of
boards add? Does such a board member have time to do justice to the
task at hand or might not a possible conflict of interest arise?
The DA also asks the Minister to consider it very carefully when
appointing members who have served on other boards and whose
performance has been questionable. Last, but not least, the Minister
should guard against political appointments.
The portfolio committee has made specific recommendations both to
Parliament in respect of its oversight, and to the Minister to
review legislation regarding the processes leading to the
appointment of members of the board. We sincerely hope that this
matter will be properly addressed, and urgently.
In conclusion, the DA wants to place on record its appreciation to
the current board for agreeing to stay on despite the end of its
term, and wishes the new board well in its deliberations.
Mr P F SMITH (IFP): Speaker, colleagues, just from the IFP’s
perspective, I would like to say that in the end, all the parties
agreed to the names proposed. However, I must say that the processes
leading up to that was less than ideal.
20 AUGUST 2009 Page 38 of 121
We were presented with a list of names through the internal
processes of the department and the committee, which were frankly
ridiculous. The Minister is entitled to make the choice herself. The
function of the process before then is to provide her with a short
list of sufficient names for her to be able to exercise her mind.
And what, in fact, we received was something that would have almost
compelled her to take all the names on the list, bar one or two, and
that is completely unacceptable.
The list was not balanced in respect of the legal requirements of
what had to be included in the list. It was not racially balanced;
it didn’t adequately deal with skilled incumbents who might have
been kept on to do another term.
So we are happy with the outcome, but I do think that in future we
should reflect upon the processes that go astray. So we wish the
Minister well in choosing from the list that she has.
I do think that she could have had a few more options, but what she
has is a good, sound basis. Thank you.
The SPEAKER: I shall now put the question.
Question put: That the following shortlist of candidates be approved
for consideration for appointment to the Board of the Human Sciences
Research Council: Ms P N Gasa, Prof R Hassan, Prof M T Leshabari, Dr
20 AUGUST 2009 Page 39 of 121
P Gobodo-Madikizela, Mr T P Masobe, Dr F G Netswera, Ms P Ntombela-
Nzimande, Prof T Pillay, Prof L Qalinge, Mr A Samassekou, Prof A
Sawyerr, Dr S Zinn, Prof P Zulu, Prof A Lourens, Dr B O Tema, Prof P
Naidoo and Prof E C Webster.
Question agreed to.
Shortlist of candidates accordingly approved.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND
ADMINISTRATION - RECOMMENDATION OF CANDIDATES FOR APPOINTMENT TO
PUBLIC SERVICE COMMISSION
Ms J C MOLOI – MOROPA: Speaker, Deputy President and hon members,
the Portfolio Committee on Public Service and Administration would
like to present the report on the nomination of the National Public
Just as a reminder, hon members, we must put before us here that the
Public Service Commission is an independent and impartial
institution, established in terms of the Constitution of 1996, with
its powers and function to investigate, monitor and evaluate the
organisation, administration and personnel practices of the Public
Service, amongst others. Its mandate entails the evaluation of
achievement and lack of achievement in these programmes in
20 AUGUST 2009 Page 40 of 121
In terms of section 196(7) of Chapter 10: Public Administration in
the Constitution, it is clearly stated that –
(7) The commission has the following 14 commissioners appointed by
(a) Five commissioners approved by the National Assembly in
accordance with subsection 8(a); and
(b) one commissioner for each province ... in accordance with
In other words, we have nine commissioners from the provinces and
five national commissioners. In all, we have a total of 14
commissioners. A commissioner is appointed for a term of five years,
which is renewable for one additional term only. So, in other words,
they cannot go on to a third term in terms of the Constitution.
This year, in June, the term of office of two Public Service
commissioners came to an end after being renewed. One of them was
the serving chairperson of the commission, who will be familiar to
most members, namely Prof S Sangweni.
The vacancies meant that the Public Service Commission remained with
only three out of five commissioners. The Portfolio Committee on
Public Service and Administration was tasked on behalf of Parliament
20 AUGUST 2009 Page 41 of 121
to advertise, shortlist, interview and nominate the preferred
commissioners. The portfolio committee then reports the outcomes to
Parliament for adoption, with a view to recommend the candidates to
the President for appointment.
Speaker, it is along these lines that a subcommittee was appointed
by the portfolio committee to act as a panel in order to shortlist,
interview and recommend to the National Assembly the successful
candidates. The panel consisted of the following members: Hon J C
Moloi-Moropa (ANC), hon E Sulliman (ANC), hon E Rasool (ANC), hon N
E Gcwabaza (ANC), hon A M Dreyer (DA) and hon L Adams (Cope).
Consensus was reached on the 14 candidates who were shortlisted for
interviews. All candidates were highly qualified and experienced in
various ways. I must indicate to the House that the subcommittee was
such a dedicated team, united around one goal: to get the best out
of those who were interviewed. The subcommittee gave consideration
to candidates’ experience, qualifications, gender, age, knowledge of
the Public Service and the Public Service Commission.
After consideration of the subcommittee’s report, the portfolio
committee recommends the following candidates for nomination as
national Public Service commissioners: Ms M J J Matsomela and Mr B
20 AUGUST 2009 Page 42 of 121
In the event that these candidates are not available to serve on the
national Public Service Commission, the committee recommends that
the following candidates be considered for appointment in the order
in which they appear below, the third person being Adv R K Sizani
and the fourth Mr G Aboobaker.
I would like to take this opportunity to thank the panel, which was
a subcommittee constituted by the committee, on the good work done
in putting the interests of the country first, in order to achieve
the best selection from amongst the nominated candidates. It will
always be my wish to work with such a dedicated team, and I
congratulate them on the good work done. Thank you. [Applause.]
There was no debate.
Question put: That the House approve the nominations of Ms M J J
Matsomela and Mr B Mthembu for appointment to the Public Service
Commission and of Adv R K Sizani and Mr G Aboobaker as supplementary
AYES - 233: Abram, S; Adams, L H; Adams, P E; Bam-Mugwanya, V;
Bhengu, P; Bikani, F C; Bonhomme, T J; Borman, G M; Boshigo, D F;
Botha, T; Burgess, C V; Cebekhulu, R N; Chikunga, L S; Chohan, F
I; Coetzee, T W; Coleman, E M; Cwele, S C; Dambuza, B N; Dandala,
H M; De Freitas, M S F; De Lille, P; Dexter, P D; Diale, L N;
Dikgacoi, M M; Ditshetelo, I C; Dlamini, B O; Dlulane , B N;
20 AUGUST 2009 Page 43 of 121
Doman, W P; Dreyer, A M; Du Toit, N D; Dubazana, Z S; Dube, M C;
Dudley, C; Duncan, P C; Dunjwa, M L; Ellis, M J; Figlan, A M;
Fihla, N B; Fransman, M L; Frolick, C T; Gasebonwe, T M A;
Gcwabaza, N E; Gelderblom, J P; George, D T; George, M E; Gina, N;
Gololo , C L; Gona, M F; Goqwana, M B; Gumede, D M; Gungubele, M;
Hoosen, M H; Huang, S-B; James, W G; Jeffery, J H; Joemat-
Pettersson, T M; Johnson, M; Kalyan, S V; Kekane, C D; Kenye, T E;
Kganare, D A; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N
P; Kilian, J D; Kloppers-Lourens, J C; Komphela, B M; Koornhof, N
J J v R; Kopane, S P; Kotsi, C M; Kubayi, M T; Landers, L T;
Lekgetho , G; Lishivha, T E; Lorimer, J R B; Lotriet, A; Luthuli,
A N; Luyenge, Z; Maake, J J; Mabuza, M C; MacKenzie, G D; Madasa,
Z L; Madlala, N M; Magagula, V V; Magau, K R; Magazi , M N;
Magwanishe, G ; Mahlangu-Nkabinde, G L; Makasi, X C; Makhuba, H N;
Makhubela-Mashele, L S; Makhubele, Z S; Makwetla, S P; Malgas, H
H; Maluleka, H P; Maluleke, J M; Manamela, K B; Mandela, Z M D;
Manuel , T A; Martins, B A D; Mashigo, R J; Mashishi, A C;
Masutha, T M; Mataboge, D K; Mathibela, N F; Matlanyane, H F;
Matshoba, J M; Maunye, M M; Mavunda, D W; Maynier, D J; Mbili, M
E; Mc Gluwa, J J; Mdaka, M N; Mdakane, M R; Mgabadeli, H C; Mjobo,
L N; Mkhize, H B; Mkhize, L N; Mkhulusi, N N P; Mlambo, E M;
Mmusi, S G; Mnguni, P B; Mnisi, N A; Mnqasela, M; Mocumi, P A;
Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; More, E; Morgan,
G R; Morutoa, M R; Moss, L N; Motimele, M S; Motlanthe, K P;
Motshekga, M A; Motshekga, M S; Mthethwa, E M; Mthethwa, E N;
Mtshali, E; Mufamadi , T A; Mushwana, F F; Nchabeleng, M E;
20 AUGUST 2009 Page 44 of 121
Ndabandaba, L B G; Ndabeni , S T; Ndlovu, V B; Ndude, H N; Nelson,
W J; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo,
E N N; Ngele, N J; Ngonyama , L S; Ngwenya, W; Nhlengethwa , D G;
Njikelana, S J; Nkwinti, G E; Ntuli, Z C; Nxumalo, M D ; Nyalungu,
R E; Nyama, M M A; Nyanda, M F; Nyekemba, E; Oliphant, G G;
Oliphant, M N; Ollis, I M; Pandor, G N M; Phaahla, M J; Pillay, S
M; Pilusa-Mosoane, M E; Pretorius, P J C; Pule, D D; Rabotapi, M
W; Radebe, B A; Ramatlakane, L; Ramatlhodi, N A; Rantsolase, M A;
Rasool, E; Robinson, D; Schafer, DA; Scheemann, G D; Selau, G J;
Shiceka, S; Shilowa, M S; Shinn, M R; Sibhidla, N N ; Singh, N;
Sisulu, L N; Sisulu, M V; Skosana, J J; Skosana, M B; Smith, P F;
Smith, V G; Snell, G T; Sogoni, E M; Sosibo, J E; Sotyu, M M;
Steele, M H; Suka , L; Sulliman, E M; Sunduza, T B; Swart , M;
Swathe, M M; Thabethe, E ; Thobejane, S G; Thomson, B; Tinto, B;
Tlake, M F; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L;
Tshivhase, T J; Tshwete, P; Tsotetsi, D R; Turok, B ; Twala, N M;
Vadi, I; Van Der Berg, N J; Van der Linde, J J; Van der Merwe, S
C; Van der Walt, D; Van der Westhuizen, A P; van Rooyen, D D; Van
Schalkwyk, H C; van Wyk, A; Waters, M; Wenger, M; Williams, A J;
Xasa, T; Xingwana, L M; Zulu, B Z.
Question agreed to.
Nominations accordingly approved in accordance with section
196(8)(a) of the Constitution.
20 AUGUST 2009 Page 45 of 121
AGRICULTURE AND FOOD SECURITY
Ms N M TWALA (ANC): Thank you, Deputy Speaker. The ANC-led
government is continually implementing land reform and agricultural
development programmes, which include a comprehensive support
package for farmers, especially women farmers and rural
The Department of Agriculture, Rural Development and Land
Administration has committed itself to introducing programmes that
are aimed at animal production and forestry. The Vula Mathuba
Programme, as it is known, is already supporting 76 students who are
studying scarce skills at tertiary institutions. Amongst those
skills are the following: veterinary science, crop production and
Together with our people, the ANC tirelessly works to ensure that
the agricultural policies we implement have a positive impact on
households, food security, food prices and environmental
sustainability. Thank you.
NATIONAL STUDENT FINANCIAL AID SCHEME
20 AUGUST 2009 Page 46 of 121
Dr W G JAMES (DA): Deputy Speaker, the ministerial committee that is
to review the National Student Financial Aid Scheme, chaired by Dr
Marcus Balintulo, is obliged to report to the Minister of Higher
Education and Training within six months after the commencement of
their work, which is likely only in December 2009, as its date of
appointment was on 08 June 2009.
One of the tasks of this committee is to undertake a review of the
Means Test and to provide guidelines to determine the criteria for
eligible students. Many parents - some of whom have contacted me
directly - already pressed, as we all are, by the current
recessionary climate, are unable to access National Student
Financial Aid Scheme funds and are ineligible for student bank
If he, therefore, has not done so yet, and I am sorry he is not
present, the Minister of Higher Education and Training must
provisionally adjust the criteria and set aside adequate funds as a
temporary measure to meet the needs of students who have been
admitted to universities but whose parents, regardless of their
race, simply cannot afford the money. Thank you.
STATE OF HOSPITALS IN FREE STATE
20 AUGUST 2009 Page 47 of 121
Mr D A KGANARE (COPE): Madam Speaker, I rise to express my shock at
the level of health service at Free State hospitals. These hospitals
are generally understaffed and consequently overcrowded. At the
national hospital there is usually only one doctor on duty at night.
It is normal for patients to wait for up to eight hours in an
emergency waiting area without being attended to by a doctor.
Patients sometimes sleep on the floor for up to six days before they
are provided with a bed. The medical staff at this hospital are
helpless, with a high number of patients to deal with. Nurses and
matrons tell stories of people dying in their chairs.
The issue of understaffing is also a normal thing at Pelonomi
Hospital. The shortage of pharmacists demands that they be pulled
from other regions, once a week, to help with sorting, packaging and
sending medication to the different regions. When this happens,
regions are left without pharmacists to attend to patients.
It is only an extraordinary person, with a social conscience, who
will be able to feel and experience the pain, agony and trauma
experienced by our people as they sit there for hours on end waiting
for a nurse or doctor to ease their pain.
Those who only visit these areas accompanied by bodyguards with much
ceremony and sirens blazing will forever live in their world of
self-delusion, premised ... [Time expired.]
20 AUGUST 2009 Page 48 of 121
BRANCH COURTS COMMENCE WITH OFFERING FULL SERVICE
Mr M GUNGUBELE (ANC): Hon Deputy Speaker, Deputy President, hon
members, last Tuesday, 11 August 2009, the branch courts started to
offer full services to communities in townships and rural areas that
had no access to justice services offered by the main courts.
Fifteen branch courts across the country are now enjoying the status
of being full service courts with improved access to the justice
system following the extension of their services. The extension of
services to the current branch courts will bring great relief to
affected communities, and enhance their access to justice consistent
with the provisions of our Constitution. The launch of these courts
has taken us forward in terms of promoting justice, in particular to
the historically disadvantaged communities, even though they provide
limited services to these communities.
Due to these efforts, people don’t have to travel long distances in
order to access services such as child maintenance, protection
orders, deceased estates, adoption orders or legal remedies to any
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This is consistent with government’s effort to prioritise service
delivery by bringing facilities and services to areas where people
reside and establish a new, modernised, efficient and transformed
criminal justice system so as to develop the capacity for fighting
and reducing crime in real terms. Thank you.
BRUTAL MURDER OF PREGNANT WOMAN DURING WOMEN’S MONTH
Mrs C N Z ZIKALALA (IFP): Deputy Speaker, Nompumelelo Ndlovu, who
was believed to be seven months pregnant, was beaten to death in
broad daylight on one of the busiest streets in Pietermaritzburg’s
central business district. It is alleged that Ms Ndlovu was attacked
without provocation and hit repeatedly with an iron bar.
The IFP offers its condolences to the family and friends of Ms
Ndlovu, and all the other women of South Africa who are senselessly
murdered. We might have celebrated Women’s Day recently and we
continue to honour women during the month of August, but the abuse
of women continues unabated.
While mainstreaming gender issues, passing the right legislation and
highlighting the plight of women, these efforts are, however, not
enough and will be undermined if we do not create a culture of
respect for women. Young boys must learn from an early age that
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girls and women must be respected. This should be ingrained in our
culture. For this to happen, South African men must play a more
I, therefore, appeal to South African men, starting with all of you
sitting in this House today, to be the role models that our youth
need, and become active role-players in the promotion of women’s
rights ... [Time expired.]
SEXUAL AND REPRODUCTIVE HEALTH RIGHTS OF WOMEN
Ms P TSHWETE (ANC): Deputy Speaker, the ANC-led government continues
to raise awareness about the sexual and reproductive health rights
of women, and to strengthen the enforcement of these rights by
ensuring that they are incorporated in the broader health
The ANC-led provincial government of KwaZulu-Natal has launched a
campaign called the Phila Ma Project. This initiative is aimed at
raising awareness and educating women about cervical cancer.
The Department of Health chose to launch the campaign officially in
the Amaoti community hall. This area is one of the poorest areas in
KwaZulu-Natal and the high poverty rate shortens the lifespan of
women. During the day, the women of Amaoti and the surrounding
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communities were given free cervical cancer screening. These
services are to be rolled out throughout August as part of the
Women’s Month programme.
The ANC will accelerate the campaign of health promotion and disease
prevention by changing values and norms through community action.
Furthermore, communities will be encouraged to adopt healthy diets
and exercise, and take part in the campaign against drug and
substance abuse. Thank you. [Applause.]
CONFUSION CAUSED BY RENAMING AND REORGANISATION OF GOVERNMENT
Mr P J C PRETORIUS (DA): Madam Deputy Speaker, thus far, the
reorganisation and renaming of government departments has not been a
smooth process. Some confusion still exists, most notably in the
portfolios of agriculture, forestry, fisheries, and water and
The name of the department or portfolio named “Agriculture, Forestry
and Fisheries” clearly indicates that fisheries is a substantive
component of that portfolio. There can be no other interpretation.
The reality, though, is that only a tiny part of fisheries, namely
aquaculture – that is fish farming – falls under the portfolio.
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Aquaculture production represents a mere 0,4% of all fish
production. This means that 99,6% of fishery-related matters,
including marine and coastal management, permits, quotas, resource
management, etc, therefore fall outside the brief of the Department
of Agriculture, Forestry and Fisheries.
The department responsible for this 99,6% of fisheries affairs is
indeed the Department of Water and Environmental Affairs. Nothing in
the name or portfolio of that department suggests that fisheries are
part of it. This is a confusing and unsatisfactory situation which
should be corrected.
We call on the President and his advisers to take a fresh look at
the names of these two departments and, or, to reorganise them.
CRIPPLING EFFECT OF STRIKES AND UNREASONABLE DEMAND FOR HIGHER WAGES
Dr C P MULDER (VF Plus): Adjunkspeaker, die veelvoudige stakings in
verskeie sektore van die ekonomie is nie net besig om voor 2010 die
internasionale beeld van Suid-Afrika as ’n stabiele demokrasie
geweldige skade te berokken nie, maar is ook besig om die ekonomie
20 AUGUST 2009 Page 53 of 121
Vakbonde, in veral die staatsdiens, het die leiding geneem met die
eise om onrealistiese salarisverhogings en aanpassings. Munisipale
amptenare se verhoging van 13,5% is en bly onrealisties, en dis die
gewone man in die straat wat daardie rekening sal moet betaal.
In die huidige internasionale ekonomiese klimaat het die vakbonde en
werkers eerder op eie gewin gekonsentreer as om aan die breër
samelewing te dink.
Verhogings en salarisse hoër as die inflasiesyfer het ’n
kettingreaksie-effek op voedselpryse en die ekonomie in die geheel,
en van president Zuma se beroep op werkers om vreedsame
onderhandeling oor salarisverhogings het niks gekom nie.
In dieselfde periode waar werkers gestaak, optogte gehou en
medewerkers geïntimideer het, het miljoene ander Suid-Afrikaners hul
Die werkloosheidsyfer staan tans op meer as 23%, terwyl nog
afdankings duisende werkers in die myne en verwante bedrywe in die
President Zuma het in sy openingsrede gesê dat die regering in die
komende jaar ten minste 500 000 nuwe poste sal skep. Die regering
kan nie hierdie beloftes nakom as hy nie daarin kan slaag om
20 AUGUST 2009 Page 54 of 121
vakbonde en werkers sover te kry om vreedsaam oor salarisse en
realistiese salarisverhogings te onderhandel nie.
Die ANC-regering moet daarom sy vennote soos Cosatu in die bek ruk
om Suid-Afrika se groter ekonomie te beskerm, eerder as om aan
daardie politieke druk toe te gee. Dankie. (Translation of Afrikaans
member’s statement follows.)
[Dr C P MULDER (FF Plus): Deputy Speaker, the many strikes in
various sectors of the economy are not only causing immense damage
to the international image of South Africa as a stable democracy
prior to 2010, but they are also hampering the economy.
Labour unions, especially in the Public Service, have taken the lead
in demanding unrealistic salary increases and adjustments. The
increase of 13,5% for municipal officials is and remains
unrealistic, and it is the ordinary man in the street who will have
to foot the bill.
In the current international economic climate the unions and workers
have focused on self-gain rather than the broader community.
Above-inflation-rate increases in salaries had a chain reaction
effect on food prices and the economy in general, and nothing came
of President Zuma’s call on workers for peaceful negotiations with
regard to salary increases.
20 AUGUST 2009 Page 55 of 121
In the same period, when workers went on strike, held marches and
intimidated fellow workers, millions of other South Africans lost
The unemployment rate is currently determined at more than 23%, with
thousands of workers in mining and related industries facing the
possibility of losing their jobs.
President Zuma said in his state of the nation address that the
government will create at least 500 000 new jobs in the coming year.
The Government will not be able to keep this promise if it fails to
bring unions and workers round to negotiate peacefully about
salaries and realistic salary increases.
The ANC government must therefore pull its partners like Cosatu up
short in order to protect the South African economy, instead of
succumbing to political pressure. Thank you.]
BUILDING OF DECENT HOUSES FOR NELSON MANDELA BAY MUNICIPALITY BY
Mnu L SUKA (ANC): Umbutho weSizwe uKhongolose ukholelwa kwelokuba
ubonelelo ngezindlu lilungelo laye wonke ubani; ukuhlala phantsi
kwemeko enesidima, uxolo nesithozela lilungelo laye wonke ubani
ongummi apha eMzantsi Afrika.
20 AUGUST 2009 Page 56 of 121
Umasipala ombaxa wesixeko saseBhayi owaziwa ngokuba yiNelson Mandela
Bay, okhokelwa ngumbutho kaKhongolose uphuma iphulo ukuqinisekisa
ngolwakhiwo lwezindlu ezisemgangathweni, ingakumbi ezabantu
abangabemi beli lizwe.
Olu lwakhiwo lwezindlu luya kugxininisa kubantu abahlala ingakumbi
ematyotyombeni kunye nakwiindawo ekuye kuthi xa kunetha imizi
yabantu ikhukuliseke. Urhulumente okhokelwa nguKhongolese uya kuthi
gqolo ekwakheni iindawo zokuhlala ezikufutshane neendawo zempangelo
okanye zokuxelenga, amaziko ezemfundo kwakunye namaziko ezempilo.
Ndiyabulela Sekela-Somlomo. [Kwaqhwatywa.] (Translation of isiXhosa
member’s statement follows.)
[Mr L SUKA (ANC): The people’s party, the ANC, believes that it is
everyone’s right to be provided with a house; living with dignity
and in peace and harmony is the right of every South African
The metropolitan municipality of the city of Port Elizabeth, known
as Nelson Mandela Bay, which is led by the ANC, has embarked on a
campaign of ensuring the construction of quality houses, especially
for the citizens of this country.
The construction of these houses will focus more on people who are
living in informal settlements and places that are prone to flooding
20 AUGUST 2009 Page 57 of 121
during heavy rains. The ANC-led government will continue developing
residential areas that are close to the places of employment or
workplaces, educational institutions and healthcare facilities.
Thank you, Deputy Speaker. [Applause.]]
IMPLICATIONS OF MINISTER OF BASIC EDUCATION’S DECISION TO REDESIGN
Dr J C KLOPPERS-LOURENS: Madam Deputy Speaker, the decision by the
Minister of Basic Education, Ms Angie Motshekga, to scrap hundreds
of thousands of specially watermarked papers for matric certificates
so that redesigned ones with a larger and more prominent South
African coat of arms could be printed instead, shows that she is
driven by arrogance and superficiality, and that she has her
priorities in completely the wrong order.
The DA fully supports the inclusion of the coat of arms on the
matric certificate. It is an important mark of national pride.
However, the coat of arms is already prominent on the certificate.
If its size and position needed to be changed, the change could have
waited until next year, when no additional expenses would have been
20 AUGUST 2009 Page 58 of 121
For security reasons, the certificates are printed on watermarked
paper which is produced overseas. If the cost of the paper for each
of these certificates were R10, the cost of the scrapping exercise
would be a staggering R6 million. It may well have been more,
depending on the cost of the certificates.
If we add to this the inconvenience and cost to universities, who
now have to pay the department for statements confirming the
results, as well as the strain being placed on learners, then it is
impossible to justify this act. It appears that the Minister is
focusing on everything except improving the dismal quality of
education received by most South African children.
DISMISSAL OF MUNICIPAL MAYORS
Mr P B MNGUNI (Cope): Deputy Speaker, this country is governed by
the Constitution, which makes provision for three interrelated,
independent spheres of government.
Unfortunately, there was the intervention of Luthuli House in the
past three months whereby the mayor of Ngaka Modiri Molema District
Municipality was summarily dismissed without due process being
20 AUGUST 2009 Page 59 of 121
It seems that the government does not understand the limits of its
power neither does it have respect for the Constitution. Cope
therefore urges the relevant Minister to ensure that corrupt,
nonperforming or underperforming municipality mayors be dismissed or
removed in terms of due process.
They should not be dismissed with unnecessary wastage of public
funds or legal challenges to provincial and national interventions.
I thank you.
SCHOOL MATHEMATICS COMPETITION
Ms B T NGCOBO (ANC): Somlomo ... [Deputy Speaker] ... Advances in
science and technology depend on a solid foundation at school level.
Without a thorough foundation in mathematics, careers in science,
engineering and technology will be closed to young learners, the
majority of whom are from disadvantaged backgrounds.
The ANC congratulates the City of eThekwini on hosting the 10th
Invitational World Youth Mathematics Intercity Competition from 5
July 2009 to 10 July 2009 at the Durban City Hall, in collaboration
with the Association for Mathematics Education of South Africa.
20 AUGUST 2009 Page 60 of 121
Over 300 junior high school students representing 19 countries from
all over the world converged in Durban to participate in the
competition. This presents an opportunity for young people not only
to participate in a friendly way, but also to share experiences,
cement international friendships and foster mutual understanding.
South Africa was represented by 141 schools from the eThekwini
Municipality, with eight of those schools falling under the
Department of Education’s Dinaledi schools programme. Thank you.
STATE OF LAND BANK INVESTIGATIONS
Mr R N CEBEKHULU (IFP): Deputy Speaker, the troubles at the Land
Bank have been covered extensively in the media, and the work that
this important institution is mandated to do effectively has been
crippled by the corrupt behaviour of some of its officials.
We note the hon Minister of Finance’s comments earlier this week
that the Land Bank is on its way to recovery. This is a positive
sign and also the first step towards the Land Bank operating
efficiently and fulfilling its mandate. However, we must not forget
that the dishonesty of officials and other people caused the Land
Bank to be in this miserable state.
20 AUGUST 2009 Page 61 of 121
While we do understand that investigations are ongoing, there must
be transparency in this process, and the people who were involved in
corrupt dealings, both Land Bank officials and the beneficiaries of
illegal loans, must be exposed and brought to book.
South African taxpayers need to know that their interests are being
looked after and that corruption is not tolerated. They need to know
the names of the people who abused their money and what action is
being taken against them. I appeal to the Minister to provide this
House with a detailed update on the investigations and to furnish us
with a list of names of those who have been implicated in corruption
at the bank, as well as what action is being taken against them. The
IFP also hopes that every effort is being made to recover the funds
that were disbursed illegally. I thank you.
WORLD’S LARGEST SINGLE OPTICAL TELESCOPE AND SA LARGE TELESCOPE
Ms S V KALYAN (DA): Speaker, Spain recently opened the world’s
largest single optical telescope. Called the “Gran Telescopio
Canarias”, it is a 10,4-metre-long mirror composed of 36 hexagonal
segments. It is the latest edition to the Roque de los Muchachos
Observatory perched about 2 400 metres above La Palma, one of the
Spanish Canary Islands. Congratulations to Spain!
20 AUGUST 2009 Page 62 of 121
If we, in South Africa, succeed in attracting the Square Kilometre
Array, we will join the ranks of those who host some of the world’s
largest telescopes - an exclusive club indeed.
Unlike that of Spain, ours will be a radio telescope, the only one
of its kind in the Southern Hemisphere. We would then be able to
join path-breaking research on the nature of the universe, such as
the recent findings that the oldest and most luminous galaxies in
the universe may be more compact than was once thought - prompting a
re-evaluation of some of the assumptions relating to the evolution
STATE OF HOSPITALS IN FREE STATE
BRUTAL MURDER OF PREGNANT WOMAN DURING WOMEN’S MONTH
STATE OF LAND BANK INVESTIGATIONS
The MINISTER IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION: Deputy
Speaker, may we express appreciation for the statements made.
I would like to respond to the hon Kganare, although he has taken
flight. The last sirens that visited hospitals were when the hon
Kganare was an MEC in the Free State province. He raises quite an
important issue. The sirens have stopped since then, Mbhazima. This
20 AUGUST 2009 Page 63 of 121
is quite an important issue. If we want to see an improvement of
services, this should not be a governing party issue. All of us as
public representatives are equally responsible for oversight in
those areas that are under our care.
I think we will find out many things in engaging with hospitals. One
issue is that the country is not producing sufficient pharmacists.
So the public sector battles to attract pharmacists, and even more
so now because large chain stores have pharmacies. As a result, the
public sector battles. Where we are able to attract these
pharmacists, it is primarily in Gauteng and the Western Cape. In
fact, the cities of Johannesburg and Cape Town attract pharmacists,
so other provinces are battling.
This is not for a lack of attention to detail. The country isn’t
producing sufficient people with Mathematics and Science who choose
pharmacology as a profession. This is a big issue, but it is not a
party political issue.
The hon Zikalala raised the issue of attacks on women. I’m prepared
to take up the challenge with other men and say that we must be role
models. It’s not a women’s struggle, it’s a people’s struggle. I
think we need to be active in our communities, and people must see
what these issues are about. [Applause.]
20 AUGUST 2009 Page 64 of 121
I am sorry I didn’t get the hon member’s name, Deputy Speaker. I
think the sentiments are correct at one level about corrupt
officials or corrupt beneficiaries not being tolerated. But I think
we aren’t being fair on the new chief executive of the Land Bank to
ask him to name these people. I think he has acted as we have
required of him. The first thing he had to do was to ensure that
there were forensic reports by professionals and that those were
handed over to investigating authorities in the police. He has done
so. When people are charged, their names will be a matter of public
record. You shouldn’t ask him to act as though he is a prosecutor
and a judge in this matter.
The other mandate we gave him was to stabilise the institution, and
he has done that with aplomb. Now that this has been attained, I
think the Land Bank is in a better position to deal with newly
settled farmers and to ensure that it can fulfil its developmental
mandate. But it hasn’t been possible to do so in an environment
where the Land Bank’s books were in a state. I’m sure we can look
forward to a far more developmental role for the Land Bank, sound in
administration and an institution that doesn’t tolerate corruption.
Thank you very much, Deputy Speaker.
STATE OF HOSPITALS IN FREE STATE
20 AUGUST 2009 Page 65 of 121
The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms T V Tobias): Deputy
Speaker, I have partly been covered by the Minister in the
Presidency. For those who don’t know Pelonomi Hospital, it is a
provincial hospital in the Free State which services all the regions
in the province. It is one of the best trauma hospitals in the
country. Therefore, you will understand why everybody will go to
If there is a terrible accident that has taken place in the country
and one can’t be treated, one is then taken to Pelonomi Hospital. It
is the best hospital for midwifery in the country. We have the best
experienced midwives in the country, hence everybody wants to have
their babies at Pelonomi Hospital.
As part of my constituency work, I spoke with the MEC of Health, Ms
Sisi Mabe, who assured me that medicine has been supplied not only
to Pelonomi Hospital, but also to all hospitals in the Free State,
including clinics. So, it is very important for Mr Kganare to update
his information because I am talking about work I’ve done in the
last week when I was doing my constituency work in the Motheo
Lastly, pharmacists have been employed at Pelonomi Hospital, hence
it shares its resources with a private hospital that has been
established right in the hospital. So, an impression should not be
created that government is not doing its work because we want cheap
20 AUGUST 2009 Page 66 of 121
political point-scoring. Only facts must be stated because some of
us come from this province. Thank you very much. [Applause.]
NATIONAL STUDENT FINANCIAL AID SCHEME
The MINISTER OF BASIC EDUCATION: Deputy Speaker, there is a
question, which I will indeed refer to my colleague, around the
reconsideration of the National Student Financial Aid Scheme, NSFAS,
and considering learners who are already in the system to make sure
that they are not prejudiced because of their colour, and that they
are also assisted during the current economic environment.
The one issue I want to respond to, which I really think is a very
unfortunate misinterpretation and a misleading of the House, is on
the issue of certificates. The truth of the matter is that the
current certificates were incorrectly done. I think everybody’s
philosophy is that if something is wrong, you correct it. You
correct it now; you don’t postpone the correction.
The certificates, as the member correctly alluded to, came out
wrongly. Umalusi accepted that they had not done the certificates
according to specifications. We agreed with Umalusi that matric
certificates are papers of pride for our children. They must get
them right for them forever. I think it is correct for our children
to wait for the correct certificates until the end of August - this
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very August – when they will get their certificates. The delay was
because of the paper which is imported. But I think we all agree
that if something is wrong, we correct it; we correct it the first
Umalusi requested that we give back this year’s batch of wrong
certificates and that they will correct them next year. I said they
should correct them now for all our children. I am not sure what is
wrong with correcting what is wrong at the time when it is wrong and
giving our children the correct certificates, which they will have
forever. I think I was quite correct, and I stand by that.
I think it is again unfortunate that a member would really assume
that one has the lowest level of vanity such that they delay
certificates for some personal glory. I think it is unfortunate and
very sad for a member to reduce one’s sense of self to that. This
was a personal attack. I think it is unfortunate because this was
not for me but for the benefit of the kids. [Interjections.]
Stop howling at me, because I kept quiet when you were talking.
SCHOOL MATHEMATICS COMPETITION
WORLD’S LARGEST SINGLE OPTICAL TELESCOPE AND SA LARGE TELESCOPE
NATIONAL STUDENT FINANCIAL AID SCHEME
20 AUGUST 2009 Page 68 of 121
The MINISTER OF SCIENCE AND TECHNOLOGY: Thank you, Deputy Speaker.
In response to Mr Pretorius’ input on the reconfiguration of the
national departments and the allocation of responsibilities, I would
like to say that this is a matter government is working on. I do
recall that the Minister in the Presidency had made a public
statement indicating the timelines that government had given to
itself in order to resolve all the issues of mandates and
allocation, both of structures of government as well as areas of
We are fully alert to the issues that you have raised, and we are
working very hard to ensure that they are resolved as speedily as
possible, in the interests of service delivery. It is an ongoing
programme that government is engaged in, but we are very alert to
the challenges and difficulties.
I welcome the statements by hon Ngcobo with respect to the Maths
Olympiad. I am happy to know that there are many maths competitions
and activities that are supporting the endeavour of the Education
department as well as that of Science and Technology, to ensure that
we have many more young people who are competent in these important
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We do congratulate eThekwini for the work that they are doing to
support this particular aspect of our developmental goals.
With respect to the hon Ms Kalyan and the Square Kilometre Array
Radio Telescope programme, I am pleased to report that we are making
progress. The first dish is up. We will be unveiling it towards the
end of this month. Good collaboration between scientists across the
world and South African scientists has led to the very positive
progress, which is an important bid by South Africa.
The six initial bidders have been reduced to two. The remaining are
South Africa and Australia. And, if the Tri-Nations is the record to
go with, we know where the bid will go. We are working hard to
ensure that South Africa does well.
I will convey the views of the member of the DA concerning the
National Student Financial Aid Scheme. I would suggest that members
should also make submissions to the committee appointed by Minister
Nzimande, so that the very good suggestions that are being made are
taken account of by the review committee. Thank you.
DISMISSAL OF MUNICIPAL MAYORS
20 AUGUST 2009 Page 70 of 121
The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS:
Thank you, Deputy Speaker. I want to clarify to the hon Paul Mnguni
of COPE about what he said concerning the Mayor of Ngaka Modiri
Molema District Municipality, Mr Gwabeni. He said that Mr Gwabeni’s
party has taken a decision about him – it has the right to do so,
and I think we all know that.
In January this year, there was a strike that lasted for three
months in that district. I went there to intervene. I negotiated
with the unions to resolve the strike. After the negotiations, the
provincial government appointed an acting municipal manager because
the municipal manager was dismissed. There was no leader, the sheep
had no shepherd, but the Mayor didn’t welcome that intervention.
After three months of the acting manager’s stay in office – without
being welcomed – he uncovered a lot of misdemeanours, wrongdoing,
maladministration, corruption and nepotism.
On 1 July 2009, the provincial government acted in terms of section
139 of the Constitution, by taking away the administrative and
financial powers of the municipality. Mr Gwabeni, without following
any due process - Chapter 3 of the Constitution, to be precise,
which requires that a person must engage with another sphere of
government where there is a dispute - went to court. He didn’t
follow the clause. That means he was in violation of the
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Constitution. Despite that, he continued to engage in this process,
which was problematic in a way. [Time expired.]
The DEPUTY SPEAKER: Hon Minister, your time is up. I only allowed
you a few extra minutes to continue because I was also interested in
the conclusion of this story. Maybe you can conclude it outside for
the hon member of COPE. [Laughter.]
THE STATE OF MUNICIPAL GOVERNANCE AND THE NEED TO ADDRESS THE
CHALLENGES ARISING THEREFROM URGENTLY
(Subject for Discussion)
Mr S L TSENOLI: Deputy Speaker, Deputy President, Ministers, Deputy
Ministers, members, this topic is inspired or prompted by the fact
that last year, 2008, constituted the 10th anniversary of the White
Paper on Local Government. We couldn’t engage in that evaluation at
that time because we went into an election period. Now that we are
back, it is important to reflect on this issue.
But the other important reason, naturally, is that we have just come
from a decisive conference and an election that gave us an important
mandate to do things differently this time and, in fact, act to
improve the quality of service to the people in the country as a
whole. This reflection, therefore, is an important one for us in
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Parliament, so what we are calling for is that this matter be seen
to be particularly urgent.
It is made urgent especially because of the presentation we just had
earlier on by the Minister of Economic Development on the global
crisis and its impact on our society as a whole.
In fact, this represents one of the biggest challenges that
municipalities face - that if a crisis is allowed to reverse the
gains we’ve made it will perpetuate a crisis that the poor have been
left with for a long time, which the ANC-led government and
Parliament have taken significant steps to reverse. It is for that
reason that in reflecting on the state of municipal governance, we
identify factors that are crucial to doing that exercise, including
a brief reflection on some of the instruments that we used to do so.
We also need to persuade the public out there that the message of
the ANC that we need to work together is indeed correct and that the
government is demonstrating this in practice and in action, for
example, by firing corrupt people and taking action against those
who do not do their work properly. This process, which has been led
by the President, is the correct path, and the announcement of the
presidential co-ordinating committee that includes Premiers and
mayors is an important vehicle that is going to be used to achieve
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Also, it is useful to note that last year was also the first time
that we received the annual report on municipal performance, which
naturally we couldn’t deal with in this Parliament because of the
elections. When we looked at that report it was already inadequate
in that many municipalities had not complied - they had not given
their annual reports which they were meant to do according to the
law so that the provincial and national departments can do their
reports, and so on.
But also, we came to the conclusion that some of the reports that
were presented were quite frankly works of fiction, they were not
based on the actual performance of the municipalities as reflected
by reality, and that correction was needed there. There were also
catch-up reports that reported on previous years that were already
Therefore, they couldn’t give us reliable assessments of things and
where they were. This is why it is absolutely necessary that going
forward we do things differently. We must ensure that each
municipality undertakes to provide an accurate and reliable report
according to the law so that the provinces themselves, as well as
the national departments, present us with reports that we can rely
Just recently, but also consistent with the previous report of the
Auditor-General - which is another state institution that provides
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observations and therefore assessments of municipalities – the
report concluded that while there are skills shortages at national
and provincial levels they are “thinnest”, to quote the word he
used, at municipal level.
The challenge, therefore, for doing the work properly there requires
urgent attention in the area of skills and skills development. But
it also requires the political leadership requirements to create an
environment which enables the skills that are there to be kept, to
retain them there and to attract them as well - both of people who
work for the municipalities as administrators, and also of those who
make themselves available to become councillors, and those who make
themselves available to partner with municipalities in their civil
society organisations and as individuals to bring about a different
system of work at municipal level.
The other important state mechanism that does this is the
Demarcation Board. When they spoke to the committee, they indicated
that many provinces were not, in fact, using the capacity
assessments that they were obliged to do by government as an
instrument in order for provinces to make interventions in those
municipalities. These things were not used, and therefore, must be
used this time around. It is crucial that they are used as a basis
for dealing with these issues.
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It is important that the topic speaks about the state of local
governance, meaning that it is not just about what government does,
but what it does with people on the ground. Historically, the
democratic movement has worked with NGOs both in local and in rural
local governments to provide support to the work that was being done
to bring about change in the localities, and so on.
Post 1994 they have played an important role in the reconstruction
process. Some of them have come together to constitute the Good
Governance Learning Network, GGLN. They have for the first time
compiled a report, and we would like to say from this podium that we
appreciated its presence, because it represents the input of people
who work with municipalities from outside and, therefore, it gives
us valuable information that we can use.
We do not necessarily always agree on things, but some of the issues
that they raised are critical, especially public participation which
is one of the most important requirements that municipalities need
to be on top of to perform their work properly.
In other words, the work, for example, the fact that the Department
of Co-operative Governance and Traditional Affairs is undertaking to
lead an enquiry that would lead to a turnaround strategy is crucial,
and it must take on board some of this work that has been done in
civil society. This must happen inside the government itself.
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I also want to mention our interaction with the Public Service
Commission. The work that they do is crucial and as the Constitution
says, it needs to be replicated towards municipalities; the useful
information that emerges from the reports that they produce is
equally valid for use at municipal level.
Therefore, the priorities that the new Parliament and government now
have of principally dealing effectively with poverty and inequality
in broad terms, and specifically with issues of health, education,
rural development and combating crime - to mention those four – make
up a crucial area in which municipalities are going to play an
important role. And they cannot do so if institutionally they are
not well capacitated and are not in a position to undertake their
With regard to the protests that have taken place, the count that we
received from both Salga and others, who are local government
watchers, is 35 municipal areas. But this is not taking place
throughout these municipalities. It is in specific wards in those
municipalities and in many of those instances there are
understandable explanations. This means that there are reasons that
can be traced that led to those protests, that the impatience of
people often is justified in those areas. But in general, it is the
requirements for our intervention both at parliamentary and
government level that will turn things around at that level.
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So, these protests are an indicator, not an exaggeration, of the
need for us to intervene. It is a requirement for the period in
which we are in to reconfigure, not only municipalities but the
state as a whole, to become developmental, that is, decisive and
action-oriented to bring about the kind of programmes that people on
the ground require. Thank you. [Applause.]
Mnr W P DOMAN: Voorsitter, elke ideologie en gepaardgaande beleid
word deur die harde werklikheid van die praktyk getoets. Kommunisme
en apartheid het nogal lank geneem om deur die praktyk ontbloot te
word, maar die ideologie van die nasionale demokratiese revolusie
van die ANC, waarvolgens kaders ontplooi word as burgemeesters en
topamptenare, met die gepaardgaande luukshede en uitspattige
vergoeding te midde van totale onbevoegdheid in baie gevalle, het
minder as nege jaar geneem om deur die praktyk ontbloot te word as
’n stelsel wat nie dienste lewer in munisipaliteite nie. Daarom het
ons nou al hierdie opstande.
In die negentigerjare met die geleidelike transformasie van
plaaslike regering is goeie munisipale diens gelewer, maar sedert 5
Desember 2000, na die eerste volle demokratiese verkiesing, is die
nasionale demokratiese revolusie voluit toegepas en swak
dienslewering het dit nou ten volle ontbloot as ’n stelsel wat nie
kan werk nie. (Translation of Afrikaans paragraphs follows.)
[Mr W P DOMAN: Chairperson, every ideology and accompanying policy
is tested by the harsh reality of practice. It took quite some time
20 AUGUST 2009 Page 78 of 121
for communism and apartheid to be exposed by practice, but the
ideology of the ANC’s national democratic revolution, according to
which cadres were deployed as mayors and top officials, along with
the luxuries and extravagant remuneration in the midst of total
incompetence in most cases, was exposed by its practices in less
than nine years as a system that does not facilitate municipal
service delivery. That is why we are having all these protests.
With the gradual transformation of local government in the 90s,
municipal service delivery was good, but since 5 December 2000,
after the first full democratic election, the national democratic
revolution was implemented in full force and poor service delivery
has now exposed it completely as a system that cannot be
Therefore, the DA fully agrees with the topic of this discussion. It
is a governance problem, and it is brought about by an ideology that
demonstrated that it cannot deliver and will lead to more protests.
Therefore, we also agree with President Zuma’s pronouncements last
week that the ANC will no longer wait for the laws of the country to
kick in, but will hold its mayors and councillors personally
accountable and remove those who transgress or do not perform.
This view that it is the ANC, as a party, that must take
responsibility, and the very fact that we, at long last, are allowed
to have this debate in Parliament, which the DA has been calling for
20 AUGUST 2009 Page 79 of 121
since last year, bodes well for a possible turnaround strategy for
municipalities. This is because we have honesty here, and we have
openness. This is progress, and the hon Tsenoli also talked in this
vein today, with openness, in addressing the serious issues that we
However, Chairman, we must start by acknowledging that it is a
governance problem, and then we must do something about it.
Therefore, the DA calls for the ANC to stop deployment and to let
the local people decide on merit. Hold individuals responsible and
do not allow them to hide behind the collective or else individuals
will never perform, but they will rather only cement their own
positions by appointing buddies and awarding contracts to well-
connected friends. At the moment, at municipalities, it is more
important what your position in the party is than what your
obligations are to the public office you occupy.
This is when governance at municipalities goes all wrong. Let me
give you a few examples: an executive mayor who doesn’t act on the
wrongdoing of an official because the official is high up in the
ANC, and right there you have the collapse of discipline and
performance at that municipality. It can also be the other way
around, where mayors and councillors meddle in the domain of
officials and actually force them to do illegal things just because
they believe that they are politically untouchable.
20 AUGUST 2009 Page 80 of 121
Another example is an MEC who doesn’t act against the nonperformance
or even corruption of an executive mayor or municipality out of fear
of political retaliation. Then ANC politics is more important than
what the laws of the country in terms, in this case, of co-operative
governance demand of the public office of the MEC. Or you have the
situation where the South African Municipal Workers’ Union, Samwu,
through their powerful local bosses at certain municipalities
actually run those municipalities, instead of the duly elected
The governance shortcomings are further demonstrated in what is the
priority at many ANC-led municipalities: an expensive mayoral car,
overseas trips, large advertisements in papers, always with a
picture of the mayor and other seniors, and excessive spending on
nonsensical community projects that only benefit a few, instead of
aiming to deliver the basic services that should be the core
function of a municipality. So, I want to reiterate that it is a
governance problem that must be sorted out by the governing party
within its own ranks, or else poor service delivery will show up the
shortcomings of this ideology more and more.
Apart from this governance problem, I want to state categorically
that a municipality needs skilled and dedicated officials to deliver
services. Even if councillors are failing dismally, a decent level
of services will be delivered if the municipality has competent and
hardworking officials. It is common knowledge that the
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implementation of the national democratic revolution, whereby cadres
must occupy all positions, has led to an exodus of skills and
experience from local government.
To get service delivery back on track, as a short-term measure,
interventions at a substantial number of municipalities will be
necessary to allow for the appointment of competent administrators.
Some service delivery achievements have been registered with
partnerships with the private sector, whereby professional and
technical experts have been parachuted into municipalities to assist
them. We need much more of this.
Baie munisipaliteite het so ’n slegte naam by professionele mense
dat hulle weier om direk vir ’n munisipaliteit te werk. Hulle
verkies eerder om, byvoorbeeld, deur die Ontwikkelingsbank van
Suider-Afrika by ’n munisipaliteit geplaas te word.
Oor die lang termyn is volhoubare opleidingsprogramme ook nodig om
kundigheid te verbeter, maar dit is baie belangrik dat die hele
kultuur wat tans by munisipaliteite se werkerskorps aanwesig is,
omgekeer moet word sodat dat daar groter toerekenbaarheid,
hardwerkendheid, beloning vir uitnemendheid, en trots op skoon
oudits en op hoë standaarde is. (Translation of Afrikaans paragraphs
20 AUGUST 2009 Page 82 of 121
[Many municipalities have such a bad reputation with professional
people that they refuse to work directly with a municipality.
Instead they prefer, for instance, to be placed at a municipality
via the Development Bank of Southern Africa.
Sustainable training programmes to improve skills are also needed in
the long term, but it is important that the entire culture that
currently prevails among the worker corps of municipalities be
reversed in order to promote greater accountability, diligence,
reward for excellence, and taking pride in clean audits and high
You know, it will be one of the most shocking studies if someone
were to list the municipal managers of the 283 municipalities since
2000 and what happened to each of them. The list of those who were
prosecuted for corruption and maladministration is endless, not to
mention those who simply ran away to avoid prosecution, and there is
even a number of them who just continued with their bad habits in
other municipal positions.
In this regard, the DA welcomes Minister Shiceka’s strong stand on
corrupt officials all over the country. We fully grant that South
Africa has a skills shortage, and especially municipalities in the
rural areas are battling to attract professionals and technical
people. If the prevailing culture at many municipalities is not
turned around, service delivery will remain poor. The time is long
20 AUGUST 2009 Page 83 of 121
overdue for municipalities to appoint on merit and provide for
career development on performance, rather than misuse the
substantial power it has in this regard.
The Municipal IQ foundation found that by mid-July this year 24
major protests had been recorded. This is close to the entire total,
namely 27 for 2008 and 31 for 2007, and is likely to exceed the peak
of 35 in 2005.
Minister, the DA supported the budget this year because it believes
that under your leadership the budget and its programmes can make a
difference for the better. Then we must address the real issues, of
which I’ve only addressed two today, that are hampering service
delivery. At the municipalities where the DA governs, it applies the
ideology of an open-opportunity society. We appoint on merit, we
prioritise service delivery and, therefore, those municipalities
excel. I thank you. [Time expired.] [Applause.]
Mr T BOTHA: Hon Chair, let me thank the ruling party for opening
this debate on this crucial issue of service delivery. Hon Speaker,
it is the state’s responsibility to ensure that citizens of this
country receive quality services. When the executive promises to
deliver services to the citizenry, it first has to ensure that it
has both the capacity and the resources to fulfil that
constitutional mandate. The ruling party cannot justify its failures
20 AUGUST 2009 Page 84 of 121
by blaming them on a third force or, even worse, on the previous
administration, an administration it was part of.
It is public knowledge that approximately 90% of municipal water-
treatment facilities in this country, which treat bulk-water
supplies from dams and rivers, need replacement. The sewerage
systems in Gauteng are said to be operating at 102% over their
capacity, a situation that is untenable and a time bomb that, if not
attended to, will collapse ablution in this busy city region.
In places such as Umtata, although the water and sewerage systems
are within the city, the council has no control over the provision
of these services. The sanitation services are rendered by the
district authority of the O R Tambo District Municipality, while the
King Sabata municipality oversees power and roads. This unwieldy
situation was brought about by the ANC-controlled O R Tambo
District, supported by the provincial government in 2003.
[Interjections.] I was not there. [Laughter.] It was not motivated
... Listen to this; listen to this before you talk. It was not
motivated by any desire to ensure efficiency of service delivery,
but driven by the political desire to punish the UDM-controlled
This situation has, unsurprisingly, therefore resulted in the
collapse of services in the town, with the city bursting at the
seams, as there is no planning that has been put in place for the
20 AUGUST 2009 Page 85 of 121
ever-growing population that now has more than doubled from 400 000
to over a million people – without services being upgraded. This
conduct of placing party politics above the interests of citizens is
at the heart of the crisis in local government. This behaviour
results in the appointment of incompetent ANC deployees to run
municipalities and the appointment of ANC-connected contractors to
Hon Speaker, while Cope wishes to condemn the violent destruction of
property by the protesters, we are equally convinced that these
citizens have legitimate complaints and demands. They have been let
down by successive ANC governments at local government level. They
are equally shocked that the government’s first reaction has not
been to listen but to condemn and to duck responsibility by blaming
the so-called previous administration.
We are of the view that the ruling party has created unrealistic
expectations which are not matched by deliverables. Let us remind
you, hon members, that it was the ANC conference in Stellenbosch
that resolved to address the challenges of cross-border
municipalities. [Interjections.] This was resisted by its allies,
the SACP, who went on to mobilise the community of Khutsong until
this decision was reversed.
Has government learnt anything from this fiasco? It seems not, to
me. Ironically, it is this lack of backbone that gives communities
the impression that if you are unruly, you will get your way and, in
20 AUGUST 2009 Page 86 of 121
fact, you will be rewarded by doing what you are doing. An example
of this shocking value system is that of Jomo Mogale, a teacher who
rendered the schooling system ungovernable in the same community of
Khutsong. Today he is reinstated and branded a good teacher by the
The government will not solve these problems by continuing to
transfer functions to municipalities without the commensurate
budget. The revenue bases of the municipalities are shrinking and
their populations are growing. This situation, coupled with
nonpayment for services, has reached crisis proportions and requires
Cope calls for a national indaba in which all sectors of civil
society come together to deliberate on the solutions to this crisis
so that government can stop using stopgap measures to solve what is
an endemic problem.
We therefore believe that three critical things must be addressed.
There must be an audit of municipal management which must take place
throughout the country. The multimillion-rand projects that have
been awarded to incompetent companies owned by civil servants need
to be reviewed and stopped in order for the resources to be directed
or redirected to service delivery. Government must put in place an
early warning system to avoid the unnecessary takeovers of functions
belonging to local authorities as a crisis management solution,
20 AUGUST 2009 Page 87 of 121
because these takeovers do not solve the problem. Thank you very
The HOUSE CHAIRPERSON (Mr M B Skosana): Thank you, hon member. I’m
glad that when you referred to me as “Speaker”,but my parliamentary
boss was not here otherwise you would have gotten me into trouble.
Mr P F SMITH: Thank you, Chairperson. Colleagues, I think that if we
were to be honest with each other in this House today, we would have
to admit that the state of our municipalities is not what was
expected a decade ago and that the hopes and expectations of
millions of people have, in fact, been dashed.
It is also true, of course, that the state of local government in
the country is uneven and the most serious situation pertains to the
poor and largely rural municipalities, many of which are in a
critical state and are, in fact, sometimes barely functional.
Now, the starting point in looking at this very poor state of
affairs is the Constitution, or rather, the manner in which the
provisions of the Constitution have been inadequately implemented. I
just want to highlight two pertinent issues here. There are many
which the other speakers have referred to.
20 AUGUST 2009 Page 88 of 121
Firstly, the drafters of the Constitution placed an injunction on
the national government, which is given the power to raise national
taxes, to share the income so raised between the three spheres,
including the respective municipalities, and I quote:
... to ensure that they are able to provide services and perform
the functions assigned to them.
Now, unfortunately, notwithstanding the significant increases in
disbursements from the national government – and I acknowledge that
local government financing has never been adequate - there is
absolutely no way that the financing of poor rural municipalities,
even at today’s levels, has ever been sufficient to address historic
backlogs or current needs or, in fact, even to fulfil the
developmental role they have been given.
Secondly, the drafters of the Constitution placed another injunction
on government, both national and provincial, to support
municipalities. Now, it was understood by all that the enormous
delivery tasks facing municipalities required that everybody work
together and that municipalities would need lots of support to make
this happen. But instead of doing this, too many municipalities were
thrown to the wolves and left, effectively, to their own devices to
fend for themselves as best they could.
20 AUGUST 2009 Page 89 of 121
In desperation we had Project Consolidate, which was meant to have
been a short-term measure, but has now become quasi-permanent. But
at least it showed us what support means and what can be achieved.
In our opinion, a lot more could have been done in the past in
respect of years gone by, which would have made all the difference
and this debate today would have been of a different tenor.
So where do we go from here? Well, I want to make just two points
perhaps as a starting point. Firstly, we have a Constitution: Why
don’t we just implement it for a change? Secondly, if we really want
to know what has gone wrong, I think we need to start by looking at
the top rather than at the bottom. What’s going wrong at the bottom
is a consequence of what’s gone wrong at the top.
Unfortunately, I feel that government’s response to the problems has
been inappropriate. The single Public Service story is just going to
nationalise poor governance, and the notion of more intervention
powers – which is now this constitutional amendment we’ll be looking
at – is completely unnecessary. Government has a whole armoury of
intervention weaponry and it doesn’t need more.
What we really expect is a mantra from the Minister and the Deputy
Minister. Every day they should wake up and say: “More resources,
more support, more resources, more support!” If you do those two
things, we will see a difference. Thank you very much. [Applause.]
20 AUGUST 2009 Page 90 of 121
Mr J J MCGLUWA: Thank you, Chairperson. This debate on local
government and service delivery is long overdue, and it is an
extremely critical and important issue. Today we can see how serious
the ANC takes this debate if you note all the absent MPs here today.
Where are the MPs? They have all gone.
The ID supports the Minister in his attempts to address the
challenges of poverty and poor service delivery. The role of Salga
must be reviewed to ensure the implementation of national
Many municipalities are abusing the indigent grant given by national
government to help the poor. In some cases, these grants are being
used to pay salaries.
The performance bonuses paid to municipality managers must be linked
to actual achievements in service delivery and should not be
interpreted by municipal managers as an extra perk for them. We in
the ID believe that payment of performance bonuses for municipal
managers must be determined by the national Minister and not by the
local municipality. Currently, the ID has a performance agreement
with its councillors and we would like to advise that the ANC and
all other parties do likewise. Thank you. [Time expired.]
Ms D G NHLENGETHWA: Chairperson and hon members, the 2009 ANC
Election Manifesto clearly states that we must be proud of our past
20 AUGUST 2009 Page 91 of 121
and be confident of the future. For 97 years the ANC has led the
struggle to bring about a South Africa that belongs to all people,
black and white. We moved on to embrace the unity of all South
Africans, irrespective of race, colour, culture and religion.
This unity is the source of our strength and inspired many who
sacrificed their lives for us to attain our freedom and helped us to
cope with and tolerate each other in the ANC. The 1994 and 2004
elections were about the aspirations and the collective desire for a
better South Africa and a journey to bring an end to the legacy of
Fifteen years into our democracy, together we have achieved much in
building a new society, uniting all our people in reducing poverty.
Much of the economic and social devastation of apartheid as well as
its scars are still with us. However, in December 2007, the ANC met
in Polokwane where delegates brought messages from South Africans of
different cities and towns and from different rural areas. They
brought these problems and we talked about those that we know: the
challenges of unemployment, poverty, and challenges of poor service
We heard and shared experiences about many municipalities which are
dysfunctional. During the door-to-door campaigns, we heard what
people said. In our resolutions, as the ANC, we agreed to come up
20 AUGUST 2009 Page 92 of 121
with a turnaround strategy which would be an intervention to
overcome all these challenges.
With the changing conditions, environment and political
consciousness we will turn around all the so-called instability in
municipalities. We have 283 municipalities and 48 district
municipalities in this country. According to our statistics, we had
only 24 protests about service delivery. But now it seems, Mr Doman,
as if the whole country is ungovernable.
Yini ihaba kangaka? [Why are you exaggerating so much?]
We know that some of the communities have valid reasons for why they
are protesting. We know that some communities demand proper
consultation and some are complaining about poor service delivery
and public participation in some structures; and poor financial
management and fraud and corruption in others. In those affected
municipalities, the department has managed to use section 139 as an
intervention strategy required by the Constitution. There is also a
team from the national Ministry that is travelling around the
country doing interventions, interviewing communities and holding
meetings with stakeholders. The Sunday Times newspaper dated 16
August 2009 also published the Mpumalanga report on this.
Sihlalo siyati futsi kutsi tonkhe letiphitsiphitsi naletibhelu
lesitibonako nalokungavisisani kwetakhamuti. Lokunye kubangwa
20 AUGUST 2009 Page 93 of 121
yimincele, sibonelo, sikubonile kwenteka eMatatiele nakumasipala
Silikomiti, sivumelene naNgcongcoshe, babe Sicelo Shiceka, kutsi
sitawucala kabusha luhlelo lwekuvakashela tonkhe letindzawo
letitsintsekako kuva kutsi bantfu bona batsini; bafuna kuwela
ngakuphi. Siyati singuleNdlu kutsi ludlame lwemincele alupheli
kungakatsatfwa tinyatselo letisemtsetfweni.
Lokunye futsi lesikubonile lokubanga letibhelu lesitibonako
kufudvuka kwebantfu basuka kulenye indzawo baye kulenye, lesikubita
ngekutsi kutfutsa. Kwandza imikhukhu lengenamanti, lenganato tindlu
tangasese. Ngesintfu sakitsi sitsi, “Leyomile iya emtfonjeni.”
Bafudvukela etindzaweni ngenhloso yekuyofuna imisebenti.
UMhlonishwa, babe Zuma ukhulumile ngelilanga lekubekwa kwakhe
njengeMengameli walelive, watsi:
For as long as there are communities without clean water, decent
shelter or proper sanitation, we shall not rest, and we dare not
falter, in our drive to eradicate poverty.
Nantsi-ke sisho njalo. (Translation of Siswati paragraphs follows.)
[Chairperson, we also know that some of these protests, riots and
conflicts that we see amongst community members, are caused by the
20 AUGUST 2009 Page 94 of 121
issue of boundaries, for example, we saw it happening in the
Matatiele and Moutse municipalities.
As a committee, we agreed with the Minister, Mr Sicelo Shiceka, that
we will resume the programme of visiting all these places to find
out which municipalities people want to belong to. We know as the
House that these protests will not end if legal steps are not taken.
Another issue which we have identified as a cause of these protests
is the movement of people from one place to another, which we call
migration. More informal settlements without clean water and proper
sanitation are created. People move to a place where they see an
opportunity to benefit. So they move to these places to search for
The hon Mr Zuma on the day of his inauguration as President of the
For as long as there are communities without clean water, decent
shelter or proper sanitation, we shall not rest, and we dare not
falter, in our drive to eradicate poverty.
We also share the same sentiments.]
Chairperson, part of the turnaround strategy is that municipalities
must have debt recovery plans that will address backlogs over the
20 AUGUST 2009 Page 95 of 121
medium term and the long term and the capacity to generate revenue.
In this regard, ultimatums of implementation are crucial to be able
to achieve the target date for 2011.
In order to make sure that the disseminated information reaches the
intended beneficiaries, ward councillors must be revived and be
supported with the necessary tools of their trade, such as offices
in which to operate. That is when councillors will be vibrant in
calling report-back meetings and be accountable to the communities
The latest Markinor public opinion and perception surveys of May
2009 show that the majority of our people have very low levels of
confidence in their municipalities. This negative perception of the
state of local government is also common across all parties.
With the intervention that we have put in place, the ANC is very
confident that we will bring back confidence and hope to our people
by rooting out all the corruption and throwing out all the rotten
apples which do not want to deliver.
We are now approaching the local government elections. By going back
to the people and listening to their views, we will be able to get
individuals who influence people to protest against those who are in
authority, so that they can be elected to those positions.
20 AUGUST 2009 Page 96 of 121
Since we are nearing the end of the month of August, I would like to
congratulate women in the provincial and local governments who
successfully had their 7th Summit in Bloemfontein from 16 to 18
August 2009. We hope that their discussions will enable us to get
50% representation of women in the forthcoming local government
To conclude, I would like to extend my sympathy to those families
who have been affected by these protests, some of whom had their
houses burnt down. We all know that the victims of these incidents
are women and children. We urge those perpetrators to stop this. It
is barbaric and inhumane. We know that they are doing this for
political gain. I thank you. [Applause.]
Mnr P J GROENEWALD: Agb Voorsitter, ek wil net vir die agb lid sê as
sy sekere vrot appels gaan uitgooi, gaan sy ’n skok opdoen, want sy
gaan agterkom op party plekke gaan sy die hele sakkie moet weggooi.
Die onderwerp van hierdie debat is die noodsaaklikheid om die
uitdagings van plaaslike regering aan te pak. Ons mislei onsself.
Dit is nie uitdagings wat daar bespreek moet word nie, dis krisisse!
Ek wil sover gaan om te sê die onderwerp behoort te wees “die
noodsaaklikheid om die totale ineenstorting van plaaslike regering
aan te pak”.
20 AUGUST 2009 Page 97 of 121
Die agb Tsenoli het hier kom spog dat die probleem oor korrupte
amptenare aangepak word en dat daar teen hulle opgetree word. Ek wil
vir hom geluk sê, maar ek het reeds by verskeie geleenthede van
hierdie einste podium gevra dat die agb Minister regulasies moet
uitvaardig wat bepaal dat ’n bepaalde amptenaar wat onder
dissiplinêre verhoor is by één munisipaliteit nie by ’n ander
munisipaliteit aangestel kan word alvorens daardie dissiplinêre
verhoor afgehandel is nie.
’n Tipiese voorbeeld is die munisipale bestuurder van Klerksdorp. Ek
het dit al hóéveel hier genoem! Hy was aangekla van diefstal, bedrog
en korrupsie, en vóór sy saak afgehandel is by Kroonstad, is hy
aangestel as munisipale bestuurder van Klerksdorp.
Die HUISVOORSITTER (Mnr M B Skhosana): Agb lid, u tyd is verstreke.
Mnr P J GROENEWALD: Dan sal u begin optree! Dankie. (Translation of
Afrikaans speech follows.)
[Mr P J GROENEWALD: Hon Chairperson, I just want to say to the hon
member that if she is going to get rid of certain bad apples, she is
going be shocked, because she will realise that in some instances
she will have to throw away the whole bag. [Laughter.]
The subject of this debate is the urgent need to address the
challenges of local government. We are deceiving ourselves. It is
20 AUGUST 2009 Page 98 of 121
not about the challenges that there should be a discussion, but
rather about the crises! I will go as far as saying that the topic
should be “the urgent need to address the total collapse of local
The hon Tsenoli came here and he boasted that the problem of corrupt
officials is being addressed and that action is being taken against
them. I want to congratulate him, but from this very same podium I
have asked the hon Minister on several occasions already to issue
regulations stipulating that when a particular official is facing
disciplinary action at one municipality, such official may not be
appointed at another municipality until that disciplinary hearing
has been concluded.
A typical example is the municipal manager of Klerksdorp. I have
already mentioned it here so many times! He was accused of theft,
fraud and corruption and, before his case was concluded in
Kroonstad, he was appointed as municipal manager of Klerksdorp.
The HOUSE CHAIRPERSON (Mr M B Skosana): Hon member, your time has
Mr P J GROENEWALD: Then you will be taking action! Thank you.]
Mr S N SWART: Speaker, the ACDP shares the view that the state of
service delivery in many of our municipalities is appalling.
20 AUGUST 2009 Page 99 of 121
Minister Shiceka was very frank during his Budget Vote earlier this
year when he said:
It is a crying shame that after 15 years of democracy, parts of
our country still reflect a legacy of apartheid and the
unacceptable face of underdevelopment, poverty and
And in commenting on the deplorable state of certain municipalities,
he stated further:
The extent of the breakdown in trust is so great that it is
placing our democratic state at risk.
We thank him for those frank words. We have also seen a number of
areas being engulfed by service delivery protests. Twenty four is
too many, hon member. Clearly, we in Parliament must exercise a far
greater and more robust oversight function. We welcome the
Minister’s commitment to deal quickly and effectively with corrupt
officials. Citizens are crying out for better service delivery.
Should these issues not be urgently addressed, we will continue to
see protests and demonstrations that can, indeed, place our
democratic state at risk. I thank you.
20 AUGUST 2009 Page 100 of 121
Nkul D W MAVUNDA: Mutshamaxitulu na Yindlu ya wena, ndzi yima laha
mahlweni ka n’ wina ndzi lava ku kombisa erivaleni vuxaka na
ntirhisano exikarhi ka vurhangeri bya ndhavuko na vurhangeri kun’we
na vuyimeri bya masipala kumbe mimfumo ya xikaya.
A swi kanakanisi Mutshamaxitulu leswaku eka tindhawu tin’wana ta
tiko ra hina, ku suka hi lembe ra 2000 loko ku tumbuluxiwa mimfumo
ya xikaya kumbe timasipala, ku kwetlembetana, ku pfumaleka ka ku
twisisana na ku tsandzeka ku tirha swin’we exikarhi ka vukosi na
vamasipala ku ve kona. Sweswo swi endle leswaku vukorhokeri eka
vanhu byi nga vi kona. (Translation of Xitsonga paragraphs follows.)
[Mr D W MAVUNDA: Chairperson and the House at large, I stand before
you to illustrate the relationship and co-operation between
traditional leadership and representatives of the municipalities or
There is no doubt, Chairperson, that in some parts of our country
since the establishment of local governments or municipalities in
2000, infighting, lack of consensus and failure to work together
between traditional leadership and municipalities has always been
there. That has resulted in the lack of service delivery for the
In a true sense, there is no structure or leadership in our rural
communities that does not want development in their respective
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areas. Traditional leaders, church leaders, or democratically
elected leaders are always concerned about their status and the
status of the communities where they live.
Secondly, the two components that I have mentioned, the local
municipalities and the traditional leadership institutions, were
both established by legislation, they are entrenched in the
Constitution of our country and have the same common purpose, which
is to serve the needs and interests of the previously disadvantaged
The unfortunate situation between the two components has caused and
perpetuated a nightmare for the underdeveloped rural areas and the
rural communities. Interestingly, Chairperson, this House has
promulgated laws and Acts to distinguish between the roles of the
two institutions, their respective duties and functions, as well as
their legislative mandate for operating and servicing the previously
disadvantaged and underdeveloped rural communities.
For example, section 5(2) of the Traditional Leadership and
Governance Framework Act of 2003 provides for the partnership
between municipalities and traditional councils, where those
partnerships must be based on the principles of co-operative
20 AUGUST 2009 Page 102 of 121
However, the two parties chose not to abide by those Acts; instead,
they fought for power to rule over the same previously disadvantaged
communities. This has posed a very serious challenge for our
municipalities as there is a lack of legislative compliance.
This was because the two parties did not have insight into the
legislation or a proper interpretation of the Act – something that
needs to be looked into. There is no sign of a serious commitment to
consultation between the two components.
Community development has since been paid lip service in most of our
rural communities because, in reality, there are no clear policies
or programmes to deal with this.
We, therefore, call for the publication and immediate implementation
of the Communal Land Rights Act of 2004, which provides, amongst
other things, for the establishment of the land administration
committees by the local people themselves.
Their functions, amongst other things, are to ensure the allocation
of new-order rights to all persons, including women, people living
with disability, youth and all vulnerable community members.
The fast-tracking of the Land Management Bill, which also provides
for working together with our people in the rural areas, will ensure
a comprehensive rural development strategy linked to land, agrarian
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reform and food security, as alluded to by the President of the
country in his state of the nation address.
Consultation by councillors with community members on key strategic
policies and decisions is a great necessity, for example, on the
revision of the Integrated Development Plan, IDP, tariffs, indigent
programmes, and so on.
Again, section 81 of the Municipal Structures Act states
categorically that any municipality that wants to bring any
development to an area within the jurisdiction of a particular
traditional leader, must have proper consultations with the said
traditional leader and other relevant stakeholders.
However, councillors in some other municipalities chose not to have
such consultations, and such practices have led to confrontation and
retarded the needed development in those communities. In order for
proper and comprehensive rural and community development to take
place in our rural communities, there must be peace and stability at
the level of community leadership.
The fact that Chapter 6 of the Traditional Leadership and Governance
Framework Act 2003 makes provision for the establishment of a
commission to deal with dispute resolution concerning customary laws
and customs in our communities and with traditional leaders, speaks
for itself. It is something that should be very desirable.
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Community development programmes and strategies can only be
conducted and implemented in communities where there is peace, no
infighting between the leaders of various stakeholders of that
community and where co-operation and working together prevails.
We therefore call upon the Ministry to speed up the process and pave
the way for the Department of Community Development and Land Reform
to operate with ease in the best interests of our communities.
We also call for the speedy establishment of the department of
traditional affairs as already discussed and agreed upon. This will
serve a better purpose in the smooth running of community
development programmes and local economic development.
Ku dya ngopfu a hi ku hlula ndlala. Ndza khensa. [These few words
will suffice. I thank you.]
Ms M WENGER: Mr Chairperson, once again local government finds
itself in a crisis, and the latest violent demonstrations bear
testimony to this. We find communities without water, sanitation or
electricity, and without decent roads, schools and clinics. Fifteen
years down the line they are no better off but are, in fact, worse
off as the recent recession finds more and more people unemployed.
During July, the DA’s parliamentary leader the hon Athol Trollip,
hon Doman and I visited hotspot areas around the country and found
20 AUGUST 2009 Page 105 of 121
the situation disastrous. Promises were made and expectations
created in order to win votes, but the same individuals who had made
those promises are nowhere to be found post the election. The
frustrations of these communities are ignored.
The placing of a few police vehicles outside the informal
settlements, as we have observed, will not change the mood within
the townships. Service delivery issues, as well as housing, need to
be addressed as a matter of urgency and should dominate debates in
The time is now. We must take action to help communities that are
living in squalor and rat-infested townships. We must take steps to
assist communities living in unacceptable living conditions where
adults and children alike are exposed to infections and diseases as
part of their daily lives.
Most of the people we spoke to during our visits have been on the
housing waiting list since 1996. What has happened to that list of
1996, Minister? Why have the people on those lists not yet received
their houses? Who are the people who are receiving preferential
treatment, and why?
We met with some who have now, out of sheer frustration, moved into
RDP houses built in their own areas, but allocated to other people.
We also saw first-hand the quality of these houses: The structures
20 AUGUST 2009 Page 106 of 121
are falling apart, water connections as well as sewerage systems are
not connected and there is no electricity. How could such a project
be signed off and the unscrupulous contractor paid?
We need to ask these questions so that the problems can be
addressed, and those involved must be held to account. The fact of
the matter is that our citizens deserve better. Let us learn from
good examples such as those set by Helen Zille, the best mayor in
the world! [Interjections.]
Salga has, on behalf of the municipalities, without the correct
mandate, negotiated a 13% increase which municipalities have not
budgeted for. This, Minister, will put further strain on
municipalities and will result in less services being delivered.
Work ethics and productivity, strangely, were not addressed in these
negotiations, thus making municipal labour very expensive. Vandalism
of council-owned assets and private property should be billed to the
Furthermore, the exorbitant membership fees to Salga which run into
hundreds of millions of rands, should rather be used for service
delivery instead of being wasted on a structure that does not really
represent the true views of its members.
Finally, I would like to address the financial viability of
municipalities. The rates and taxes accounting systems have been
20 AUGUST 2009 Page 107 of 121
changed. But instead of improving the situation, billing has been
plunged into disarray, and now accounts are not sent out on time. As
a result, outstanding debt owed to municipalities is increasing,
further crippling efforts to improve service delivery.
Credit control measures are not taken seriously, and debts keep on
rising without action being taken. Shortfalls cannot be addressed
simply by raising taxes simply to balance budgets. Our rates base is
overloaded already, and we are facing a situation where residents
can no longer afford it. Only when debt control measures have been
addressed can we begin to provide free and proper services.
A few days ago we learnt of problems facing Tshwane. Not only did
they exhaust the R500 million overdraft, but now they cannot pay
Eskom or Rand Water. We also found that at the end of June 2009,
debt owed to them amounted to R3,4 billion, and that a huge chunk of
it is owed by government departments.
A leading jurist once said:
If government becomes a law-breaker, it breeds contempt for the
law. It invites anarchy.
In order to prevent anarchy, we must ensure that our government and
its representatives are held to account. Thank you. [Applause.]
20 AUGUST 2009 Page 108 of 121
The MINISTER OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS:
House Chairperson, colleagues, members of this august House and
members of the public, this debate is taking place in an important
month, a month that is important in the struggle for women’s
emancipation. It is also dealing with an important topic that
touches the lives of all our people. Local government is the
structure that touches everyone.
Ifana noNdabazabantu ... osithinta kusukela sizalwa ukufinyelela
ethuneni uma ujabulile ukwazi ukuthola-ke isithifiketi somshado
yindlela akuthinta ngayo uNdabazabantu, Umnyango Wezasekhaya.
(Translation of isiZulu paragraph follows.)
[This is like Home Affairs ... which has your particulars from birth
to death; if you are lucky you can even get your marriage
certificate which is one of the ways in which the Department of Home
Affairs works for you.]
I have listened to everyone who engaged on this critical subject
matter, and we have heard views from various parties. The ANC also
raised critical issues and at the same time talked about the best
practices that are prevailing. There are those who are cynical when
raising their issues, as if there is nothing positive that has been
20 AUGUST 2009 Page 109 of 121
We would like to commit ourselves here in this House, as a big
family for local government, to build a local government that is
efficient, effective, responsive and accountable. We are telling you
that this is the task that we are going to do in the next coming
five years. By the year 2014, we should all be able to experience
the four things that I have spoken about.
We are also saying that it is important that all of us in this House
should rise above petty political differences and also our
ideological orientation, and ensure that we all contribute to
building local government, not only for ourselves but for our
children and future generations. It is in our interest that we do
As the department, we have unleashed a comprehensive assessment of
each and every municipality in this country, because we would like
to understand what is happening. We do not only have to understand
that, but we should be able to come up with solutions that are
tailor-made and are specific to each municipality.
We can’t use a one-size-fits-all approach to deal with the issues of
the local government, because where these challenges are
experienced, they are not the same. This revolutionary process is
driven at the provincial level by the MECs, and co-ordinated at the
national level by the Department of Co-operative Governance and
Traditional Affairs. At the same time, we believe that the
20 AUGUST 2009 Page 110 of 121
consolidated reports that come from municipalities should be
approved by provincial Cabinet, that is, the provincial executive
committees at that level.
They should be able to do so by the middle of September and ensure
that there is an outline of the state of municipalities in each and
every province - a process that is driven at a political level, and
that is going to enjoy political oversight.
Those reports should be sent to my department at the national level,
so that we can outline the state of municipalities in South Africa.
We should be able to take the report to the summit. We would like to
have a national indaba, as it has been raised by Cope. We agree with
you on this one and the process will be undertaken. We would like to
hold this national indaba at the end of October, where all of us
would be able to engage on the state of municipalities and begin to
draft a turnaround strategy for local government in this country.
Now we are saying to everybody who would like to express their views
and opinions to come forward to the conference. Governmental and
nongovernmental organisations, including universities and learning
institutions, should be able to come and contribute in taking this
process forward. From our side, we are saying that this turnaround
strategy should be approved by Cabinet before the end of this year.
Next year we should be able to implement the turnaround strategy
that has been agreed upon by all South Africans.
20 AUGUST 2009 Page 111 of 121
Once we have come up with a turnaround strategy for each and every
municipality, people should be able to engage and say how they would
like to be governed in their own localities. At the end of the day,
they would be able to monitor the implementation of a turnaround
strategy. We don’t want to allow anyone to be left out. Wonke umuntu
makaze ngaphambili. [Everybody must come on board.]
Together, we should be able to turn this country around. That is why
we are saying we should rise above petty political things because
local government is a matter that concerns everyone. You can’t
afford to politicise it. We should be able to confront the issues
and to engage from the side of the Ministry. We are also going to
engage Cope, the DA and all other opposition parties so that we are
able to find solutions for South Africa, because it is in our
interests to do that.
We believe that there is a requirement from you. The requirement is
that you should accept that the outcome might require us to amend
the laws. One of the major weaknesses that you have in the local
government legislation is that there is no oversight, and there is
no separation of powers between the executive and the legislative
component. That is within the Constitution. It might mean that for
us to be able to deliver services to our people, we should be able
to ensure that we amend the Constitution. At times we should be able
to amend the laws so that we are sharper at the end of the spear in
dealing with these issues.
20 AUGUST 2009 Page 112 of 121
We are calling upon you, so that when that time comes you would be
able to support us. You should be able to agree with us that that
should be done in the interests of the country and its people,
wherever they are. We are also saying that in dealing with the
turnaround strategy, we should agree that all of us should make a
contribution where we live, because every public representative who
is here has his or her own municipality.
The question that we should be asking ourselves is: What is your
contribution to your own municipality? Because you are not just an
ordinary citizen, you are a public representative who is supposed to
be playing an oversight role wherever you are and wherever you stay,
to ensure that local government is taken forward.
We are calling upon you to give us reports on whatever you’ve
experienced in your own areas, good or bad, so that we are able to
take the best practices forward and at the same time deal with and
undermine the negative tendencies that are prevailing in our
municipalities. We are the first to admit that not all is hunky-dory
in municipalities. Together we can find solutions and ensure that we
take these processes forward when dealing with them. Therefore, we
believe that all of us, together with this Parliament as an
institution and as individuals, should ensure that we make local
government everyone’s business.
20 AUGUST 2009 Page 113 of 121
We should be able to ensure that in the next five years, in local
government, we don’t speak in the same way, in all respects. I
won’t talk about the content of the state of the municipalities
because due process is unfolding and is taking place. Let’s await
that process to go forward. We will be able to report on the
outcomes of the state of the municipalities in this House so that it
engages itself with that process.
From our point of view we would like to agree with some members on
the issues raised concerning corruption, that it does not have any
place in this country. Together we should be able to combat
corruption, uproot nepotism and state that it is not allowed. I
would like to indicate that the issue of nepotism and appointing
people from the same party is not only an ANC matter. Let’s talk
about the DA here. The DA has removed almost all Africans who were
in leadership positions in the city of Cape Town. [Applause.] One of
them was the most able person, Mr Nhlakanipho Nkontwana, who is now
my special adviser. He was one of the best people who performed his
work very well. Last year, his achievement was the amendment of the
Constitution which was presented in this House concerning the issues
of Merafong and the law within a period of three months. That has
never been done anywhere in this country.
Therefore, the issue of removing people is not only an issue of the
ANC. You have recently removed a woman, Ms Majiet, who was the head
of the Department of Local Government in this province. She is a
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disabled woman who was removed by the DA. Her sin was that she was
not appointed by the DA.
Therefore, the issue of nepotism is not only an ANC matter. I think
we must all agree that people should be appointed based on merit and
not because of their political affiliation. That should be
applicable to all of us here. [Applause.]
Here in the Western Cape almost 86% of the municipalities which are
under the DA have not submitted their financial statements to the
Auditor-General. Those are the facts and realities. If the
information was not submitted to the Auditor-General, it means you
would not be able to check whether monies were used judiciously and
for the right purpose.
Therefore, when we are debating here at the podium, let’s not
pretend to the gallery that we are holier than thou in the areas
where we are governing.
Let’s work together in addressing our weaknesses. It should not be a
party political matter. It should be a matter of governance because
it is in the interests of this country. That is why I am saying
there is no person who can throw stones when living in a glass
house. Let’s all address these issues as we go along.
20 AUGUST 2009 Page 115 of 121
I also agree with the view expressed by the FF Plus when it raised
issues that there were challenges in some municipalities, for
example, Klerksdorp. I would also like to say that it was not
correct to mention that we should call a crisis debate, as if the
sky was falling. However, we agree that we should look at the
regulations and the things that should be done.
We agree with some views expressed by the DA, Cope, FF Plus, ID and
also the ACDP, and we are saying that we should see the good points
in building local governments.
From our side, we are going to be engaging with the opposition
because we believe that we have nothing to fear and nothing to hide.
Let’s work together to build these municipalities. I thank you.
Mr S L TSENOLI: Chairperson, it is quite unfortunate that during
this month, Women’s Month, the issue of Shanaaz Majiet has been
raised. The Minister spoke about her. We talk about this issue today
because it is Women’s Month. Here is an interesting fact about her.
The Public Service Commission does interesting reports, as I
mentioned earlier. One of those reports did a sample of national and
provincial departments in terms of their performance in relation to
the nine values.
20 AUGUST 2009 Page 116 of 121
The best performing departments were led by Shanaaz Majiet and
Portia Molefe, who is from Public Enterprises. The best performing
departments! [Applause.] But the next thing, amongst other things,
she is shafted. [Interjections.] Because of that, you are supposed
to be proponents of the rule of law. [Interjections.]
The HOUSE CHAIRPERSON (Mr M B Skosana): Order, order!
Mr S L TSENOLI: Those are allegations. What are you assuming - that
she is guilty? You are being presumptuous. You must wait until you
hear what happens there.
The point we are making is that you should stop being holier than
thou. You act like a person with a hammer - everything is a nail.
You absolutely do not see the valuable and good things that are
happening in Johannesburg. In the centre of Jo’burg and outside the
centre of Jo’burg, the place is upside down with construction and
reconstruction, the rebuilding of infrastructure that was meant for
a limited white population that must now take on a bigger, inclusive
population. You don’t talk about that. All you see is what you think
is going wrong.
If you travel throughout the country you will see that there is
construction, there are cranes, but you don’t speak about them,
because, hey, you are carrying a hammer, you are looking for nails,
and this is not it. [Laughter.] [Applause.]
20 AUGUST 2009 Page 117 of 121
So, whilst the Minister is correct that we must be objective, we
must alert you to the fact that although we value your opinion, we
value them as opinions. They are not the truth, okay. There is a
distinction between the two. [Interjections.] So we must subject
them to the reality that we deal with in our work.
It is important to note that we haven’t sufficiently dealt with the
impact of migration and urbanisation on our country. This is because
some of the biggest challenges that municipalities are facing,
especially the large ones, are the growing populations.
Unfortunately, owing to the system of financing and financial
determination, the amount of money that goes to these municipalities
from national and provincial coffers does not meet the growing
requirements of these municipalities.
Yet people must receive services and they must consume those
services, so this is a global phenomenon. It is caused by a crisis
of poverty that, as I said earlier, is not caused by us but by a
system that is unsustainable that we must deal with in the long
So, in a sense, those issues are not just municipal problems. They
are problems of a global system that is inequitable, that we must
address and that we must root out so that we deal with the effects
on our poor communities in our country. And this crisis is not
20 AUGUST 2009 Page 118 of 121
spoken about often enough. What it requires of us is not only
resources but an understanding of the conditions that give rise to
Surveys have been conducted that show that a lack of capacity is
sharpest in the poorest areas in our country. The reason is because
the people in those areas, who don’t have any capacity to write home
about, gravitate towards where they think they can earn more money,
have better resources, and so on. And who gets left in those areas?
So, some of these issues, as I have said, require, as the Minister
has correctly said, “a national coming together” to identify these
issues. [Laughter.] Absolutely necessary! It is correct.
So, there is no truth in suggestions that municipalities were ever
left to fend for themselves. That is not a reflection when you study
the intergovernmental fiscal flow. Instead, you see a rapidly
growing financial injection into provinces and municipalities. It’s
recorded, unless you do not read or, if you read, you don’t
comprehend the stuff that has been made available by Treasury.
In fact, one of the biggest improvements in transparency is in the
municipal local government review. That has more information that
shows a systematic increase in resources that has been going on. We
agree fully. It is completely inadequate. It should have been more
than that, but that is because we are talking now not just about
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problem solving but paradigm shifting initiatives that must take
place this term. [Time expired.] [Applause.]
The House adjourned at 17:10.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
National Assembly and National Council of Provinces
1. The Speaker and the Chairperson
(a) Report and Financial Statements of the Office of the Auditor-General for 2008-2009,
including the Report of the Independent Auditors on the Financial Statements and
Performance Information for 2008-2009 [RP 173-2009].
1. The Speaker
20 AUGUST 2009 Page 120 of 121
(a) Letter from the Minister of Public Enterprises dated 22 July 2009, to the Speaker of the
National Assembly explaining the delay in the submission of the Annual Report of the
Pebble Bed Modular Reactor (Pty) Limited (PBMR) for 2008-2009.
Request for Extension on the Submission of PBMR 2009 Annual Report
In order to avoid a qualified audit PBMR has to demonstrate that it has sufficient funding
for the 12 months following the signature date of the audit. Without Government
underwriting of the closure cost or guaranteed funding allocation from Government
through the MTEF, PBMR will receive a qualified audit on 30 July 2009.
In order to avoid a qualified audit PBMR is requesting that the submission of their
Annual Report be delayed, thereby delaying the date for audit signoff and essentially
giving them more time to sort out the funding requirements.
I have granted them permission to delay the submission until 31 October 2009 on the
basis that the Department of Public Enterprise is compiling a Cabinet Memorandum to
brief Cabinet on PBMR’s new business case and that until Cabinet meets to make a
decision on the future of PBMR, the release of the annual report will be delayed to avoid
the consequences of a qualified audit report.
20 AUGUST 2009 Page 121 of 121
MS B HOGAN, MP
MINISTER OF PUBLIC ENTERPRISES
CREDA INSERT REPORT - T090820e-insert1 – PAGES 551-567.