Utilization of Government Grants
Provincial LED Conference Held At The Health Resource Centre, Nelson Mandela Hospital, Mthatha, Ward 6, KSDLM, ORTDM. 08-09 November 2007 Mr. Zongie Mbekeni Acting General Manager: Economic Development Bhisho
Quotations (1)
“Africans…..need to combine their knowledge, their industriousness, their resilience, their determination to succeed. We as a race are not only political but more than anything else, economic slaves. The economic dysfunction of the Black race cannot be solved unless we begin to find ways to work together towards a common objective to free ourselves from the economic doom to which we have sentenced ourselves.” (Chika Onyeani, 2006)
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Quotations (2)
“….South Africa is still very much in denial about its new democracy. Whole workforces were replaced with people who have no experience whatsoever, and then we are surprised when they fail to do the job successfully. Our legacy has unfortunately made us less able to govern and the only way we can overcome this is by stepping out of denial, overcoming divisions and working together. This is a great country with a brilliant future, but we need to be more open to constructive criticism.” (Mamphele Ramphele, 2006)
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Quotations (3)
• “Integrated Governance refers to an „approach in Governance‟ which involves integrated policy development; integrated strategic planning; integrated budgeting; integrated implementation strategies, monitoring and evaluation. For government, it involves all sectors of society through formal and informal structures.” (Frank Chikane, 2007)
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Quotations (4)
• “Transparency is essential if any public provisioning function is to gain widespread legitimacy. Even though most governmental processes are complex and long-term, the public must have some trust and confidence that the processes are legitimate and not Mickey-mouse schemes to rip off in some hideous manner. In theory, the „ideal type‟ good governance requires innovative personnel able to realize substantial public benefits, including improved service quality, risk sharing with the private sector, and cost savings. For the civil servant to do this effectively, he or she must enjoy public good will. Effective and desirable social capital would thus enable the achievement of market-driven competition, equitable risk sharing, effective performance guarantees, and appropriate transparency in innovative governmental processes without undue suspicion.” (Collins Ogutu Miruka, 2007)
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Outline
• • • • a) b) c) • • • • Introduction Objectives of the LED Unit Municipal support Thina Sinako support: Local Competitiveness Fund (LCF) – Competitiveness Action Plan (CAP) – Identification & Design (I&D) LCF – CAP – Implementation Financial Innovation Fund - Window 2 (FIF2) Challenges Recommendations Conclusion References
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Introductory remarks…
• Respect for the Institutional Mandate is imperative. • Implementation of policy, legislation, and strategy imperatives – “new priorities”. • Compliance with the PFMA & MFMA. • Compliance with the Inter-Governmental Relations Framework Act – “Work Implementation Protocols”. • Institutional quality and economic performance.
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The LED Unit Objectives are as follows…
• Facilitate and support the growth and the development of the local economies. • Four (4) key objectives: a) Inform LED policy, strategy, and dialogue. b) Inform IDPs to reflect provincial economic growth and development priorities. c) Establish sound institutional linkages to enhance the development of local economies. d) Ensure the strategic alignment of LED initiatives to government programmes.
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Municipal Support: 2006/07 and 2007/08 FYs (1)
• Geographical distribution a) ISRDP Nodes – 70%. b) URP Nodes – 30%. • Municipal transfers: directly to DMs. • Support IDP-aligned LED projects. • Technical support is imperative.
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Municipal Support: 2006/07, 2007/08 & 2008/09 FYs (2)
Financial Years 2006/07 2007/08 2008/09 TOTAL Budget Allocation 20.0m 30.0m 32.0m 82.0m Number of Projects 61 16 In progress
Notes: • Number of projects declined by 73.8% in the 2007/08 FY. • We are waiting for the Project Performance Reports (PPRs) and the Project Lists for the 2008/09 FY from the DMs & the Metro.
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Thina Sinako Support (1): LCF (I&D)
A. Call for Proposal B. Total No. of Apps Recvd 29 C. PreDeadline D. PostDeadline E. Steps 13 +ve 7-5-4 F. Steps 1-3 -ve 2-2-1 G. No. of Contracts Signed / Awarded 4 H. Amount Allocated I. Amount Awarded J. Balance K. %age Not Allocated
1st Call: CAP-0206 2nd Call: CAP – 05 - 06 TOTAL NOTES:
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20
5,625,000
957.508
4,667,492
82.98
34
34
0
24-14-12
10-10-2
11
5,812,000
4,568,407
1,243,593
21.40
63
43
20
31-19-16
12-12-3
15
11,437,000
5,525,915
5,911,085
51.68
• Steps 1 to 3 have been collapsed.
• 93.8% were awarded contracts after Step 3. • Only 23.8% went through Step 3 from the received applications. • The amount of R5,911,085 was rolled over to the 3rd Call in 2007. • The Evaluation Committee consists of the OTP, Provincial Treasury (CA), DEDEA and DHLGTA.
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Thina Sinako Support (2): LCF (IMPL)
A. Calls for Proposal B. Total No. of Apps Recvd 25 C. PreDeadline 17 D. PostDeadline 8 E. Steps 13 +ve 14-8-3 F. Steps 1-3 -ve 3-6-5 G. No. of Contracts Signed / Awarded 1 H. Amount Allocated I. Amount Awarded J. Balance K. %age Not Allocated 1.10
1st Call: CAP-0306 2nd Call: CAP – 04 - 06
4,125,000
4,079,733
45,267
27
24
3
19-14-6
5-5-8
4
7,500,000
6,992,607
507,393
6.77
TOTAL
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41
11
33-22-9
8-11-13
5
11,625,000
11,072,340
552,660
4.75
NOTES: • Steps 1 to 3 have been collapsed. • Only 55.6% were awarded contracts from those that went through Step 3. • Only 12.2% were awarded contracts from the received applications. • The amount of R552,660 was rolled over to the 3rd Call in 2007. • The Evaluation Committee consists of the OTP, Provincial Treasury (CA), DEDEA and DHLGTA.
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Thina Sinako Support (3): FIF2
A. Calls for Proposal B. Total No. of Apps Recvd 5 C. PreDeadline D. PostDeadline E. Steps 13 +ve F. Steps 1-3 -ve 1-0-1 G. No. of Contracts Signed / Awarded 3 H. Amount Allocated I. Amount Awarded J. Balance K. %age Not Allocated
1st Call: FIF2-0106 TOTAL
5
0
4-4-3
2,000,000
965,305
1,034,695
51.70
5
5
0
4-4-3
1-0-1
3
2,000,000
965,305
1,034,695
51.70
NOTES: • Steps 1 to 3 have been collapsed. • 100% were awarded contracts after Step 3. • Only 60% were awarded contracts from the received applications. • The amount of R1,034,695 was not rolled over to the 3rd Call in the 2007/08 FY. • The Evaluation Committee consists of the OTP, Provincial Treasury (CA), DEDEA and DHLGTA.
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These are some of the challenges…
• •
•
• • • • • • •
Unscrupulous consultants – behaviour. Poor management of consultants by the “potential” beneficiaries, e.g. Municipalities – skills, expertise, competency. Lack of openness & transparency in the establishment of the partnerships – PUPs & PPPs. Lack of Compassion, or the “Compassionate Spirit” in the public sector. Non-compliance with the IGRF Act – Implementation Protocols – MOUs, MOAs & SLAs. Lack of training & empowerment of public officials on PRAG (our District/Regional Offices). Lack of the Integrated Knowledge Management System (IKMS). Late submissions of Call For Proposals (CFPs). Geographic location of beneficiaries by Ward(s) by TS. Monitoring, Reporting & Evaluation.
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We recommend as follows…
• • • • • • Strengthening of the Municipal LED Units is imperative. Commissioning studies to profile the local economies. Municipalities must develop the Business Retention & Expansion (BRE) Strategies. Consultants must be managed by the beneficiaries. Beneficiaries, incl. Municipalities, must submit Project Performance Reports (PPRs) quarterly, half-yearly, and annually. Funding the Reserve List of LED projects from the Thina Sinako programme. Municipalities must establish “Think Tanks” to improve “Communities of Practice” or “Communities of Interest”. Municipalities must identify and exploit the services of their “Social Entrepreneurs” or “Civic Entrepreneurs”. Municipalities must identify and exploit IKS pertaining to local Innovators and Inventors. Thina Sinako must work very closely with SAMAF.
•
• •
•
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In Conclusion, I would like to quote John Tibane…
“When We Are Gone, Let Us Not Be Remembered By The Problems We Created, But By The Solutions We Provided.”
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References
• Chikane, Frank (2007), An Integrated Approach to Governance and a Planning Framework, Eastern Cape Seminar, Bhisho. • Edison, Hali (2003), “Testing the Links: How strong are the links between institutional quality and economic performance”, in Finance & Development, IMF, June. • Miruka, Collins Ogutu (2007), Social Capital and Good Governance in Kenyan Public Provisioning, PhD Thesis, University of the Witwatersrand, South Africa. • Onyeani, Chika (2006), Capitalist Nigger: The Road to Success – A Spider Web Doctrine, Jonathan Ball Publishers, South Africa. • Ramphele, Mamphele (2006), in the Sawubona Magazine, August, SAA, South Africa. • Tibane, John (2005), The Sacredness of Work, Tibane Consulting, South Africa.
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!!Enkosi!!
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Contact Details
2nd Floor, Indwe House Office No. 228/9 Bhisho. 5605 Tel: +27-40-6093047 Fax: +27-40-6093052 Mobile: +27-82-3320123 E-Mail: zongie.mbekeni@deaet.ecape.gov.za Website: www.deaet.ecprov.gov.za
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