MEC for Roads _ Public Works Pemmy Majodina Presenting EPWP by decree


									           MEC for Roads & Public Works: Pemmy Majodina
                     EPWP Incentive Grant Cheques
                          30 September 2009

Program director

MEC’s in attendance

Members of portfolio committee

Mayors from local & district municipalities

Heads of Departments

Municipal managers

Government & Local municipal officials
Our social partners

Members of media

Distinguished Guest

During his State of Nation Address in 1994, the former President
Nelson Mandela said “The Government is determined forcefully to
confront the scourge of unemployment, not by way of handouts but by
the creation of work opportunities”.

In 2004 former President Mbeki announced that” We will ensure that
we launch the Expanded Public Works Programme in all provinces by
the beginning of September, concentrating on the 21 urban and rural
nodes already identified in terms of our Urban Renewal and Integrated
and Sustainable Rural Development Programmes. As we have said
before, the EPWP integrates, among others, the objectives of the
development of the social and economic infrastructure, human
resource    development,   enterprise   development,   and   poverty
In his January 8th statement of 2009 the President of the ANC, Jacob
Zuma said “The 52nd ANC Conference resolution on economic
transformation states clearly that people acting collectively in the spirit
of human solidarity will shape the patterns of economic development.
This means that there is a role for all sectors of society in shaping our
economic and social future. The role of the state is explicitly set out as
directly investing in underdeveloped areas.

Unemployment in rural areas is disproportionately high, and many
rural areas lack basic infrastructure such as roads, water and electricity

The creation of decent work is at the centre of all our economic
policies. Decent work encompasses considerations of a sufficient
number of jobs, the quality of available jobs, social dialogue and social

These commitments are commitments that we will continue to honor
and implement.
We are gathered here today because as a provincial departments and
municipalities you have responded and you are still responding well to
this noble call to implement EPWP.

Our performance as a Province of Eastern Cape including local
government structures has not only showed the levels of poverty and
unemployment within the province but it has displayed our
commitment in fighting poverty and unemployment, it has showed our
continued interest in servicing the people of the province.

In EPWP Phase1, a national target of 1million job opportunities was set
and as Eastern Cape was apportioned 176 000 work opportunities and
exceeded this target by creating 255 684 work opportunities. Thank
you for your commitment and a job well done. We became the 2nd best
performing province nationwide.

Whilst the EPWP has contributed well and exceeded its first 5 year
targets, poverty levels and unemployment are still high. This has been
further aggravated by the world financial crisis which later resulted in
the global economic meltdown.
Hence President Jacob Zuma, in pursuit of the mandate and the
resolution of the ANC conference, implored upon us to accelerate the
implementation of the job creation and respond to the current global
economic meltdown. Internationally, Public Works Programmes have
demonstrated that they can cushion job losses. It is within this context
that target for the next 5 years (2009-2014) increased from 1million
work opportunities to 4.5 million work opportunities and 500 000 work
opportunities by December.

As a province we have been required to create 48 000 work
opportunities by December and 60 000 by the end of the financial year.
Our provincial 5 year target is 484 000. Once again as a province
together we can make it.

Ladies and Gentlemen for us to be able to achieve the targets, EPWP
phase 2 requires more attention and commitment from us.

    EPWP should be given the necessary attention, support and
    guidance both at a political and administrative level.
     An EPWP Incentive Grant has been introduced to incentivize
     public bodies to increase labour intensive employment through
     programmes that maximise job creation and skills development as
     encapsulated in the EPWP Incentive Grant Manual.

     For this financial year this Incentive Grant will only be applicable
     to infrastructure sector but in future it will be rolled out to other
     sectors as well.

Ladies and Gentlemen, it is critically important to know who is eligible
for the Incentive Grant and how does it work.

Program Director allow me to clarify the eligibility and the
requirements as expected:

The EPWP wage Incentive Grant is a schedule 8, conditional grant in
terms of the Division of Revenue Act number 12 of 209; guided by the
following principles and condition (it’s the first grant of this kind in SA
as it based on perfomance).
Only public bodies who have reported on their EPWP
contributions in the financial year 2007/8 are eligible for the
Incentive Grant.

A threshold has been set based on their performance and the
budget allocated. Every work opportunity created above the
required threshold will be incentivized by a R50 per day per
person employed.

Rural Municipalities that are eligible will have a zero threshold for
this financial year. This means for every job opportunity that they
create they automatically qualify to claim the Incentive Grant.

This is a performance grant meaning that the public body must
first attain agreed threshold and then claim.

Report monthly on the EPWP MIS system.

After the public body has submitted the EPWP quarter report an
audit will be done and the money will then be transferred to the
public body’s account by treasury if it has met the threshold.
    The EPWP Incentive Grant can only be used for job creation
    programmes, nothing else.

    Public bodies are compelled to sign the Wage Incentive
    Agreement, committing themselves in implementing EPWP and
    achieving the targets as set. All eligible public bodies within the
    province have signed except for Ingquza Hill Municipality.

Program Director tonight we are here to award these ceremonial
cheques to the public bodies that are eligible for the EPWP Incentive
Grant as a symbol of commitment in accelerating and taking the fight
against poverty and unemployment to greater heights.

Our province is greatly affected by the current global recession, mines
are closing down forcing the mine workers to migrate back home as
unemployed people. The automobile sector that we have heavily relied
on is seriously affected resulting in high retrenchments and other
companies closing down.
Public bodies that are eligible for the EPWP Incentive Grants are:

Provincial Departments

     Department of Roads & Transport is eligible for R26.9m and the
     threshold is 18 720 work opportunities

     Department of Health: R1.1m and has a threshold of 3 468 work

     Department of Social Development:        R607. 000 and has zero

     Department of Sport, Recreation, Arts & Culture: R351. 000 and
     has a zero threshold

     Department of Economic Affairs & Environment: R911. 000 and
     has a zero threshold

Nelson Mandela Metro is eligible for R334. 000 and has a
threshold of 5 616 work opportunities

Buffalo City: R333. 000 and has a threshold of 5 946

Amathole District Municipality: R8.3m and has a zero threshold

Tsolwana municipality: R1.4m and has a zero threshold

Lukhanji: R333. 000 and has a zero threshold

Intsika Yethu: R414. 000 and has a zero threshold

Emalahleni: R738. 000 and has a zero threshold

Sakhisizwe: R662. 000 and has a zero threshold

Chris Hani District Municipality: R7.9m and has a zero threshold

Ukhahlamba District Municipality: R3.8m and has a zero threshold

Ingquza: R333. 000 and has a zero threshold

Alfred Nzo District Municipality: R28.7m and has a zero threshold
In closing, I would like to emphasize the point that if government fails
to look at the economic emancipation of the people including job
creation, we would have failed our freedom.

I thank you

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