Photos

“Towards Vision 2014, A Better Emfuleni In The Making”

Madam Speaker Cllr Greta Hlongwane, Honourable Members of the Mayoral Committee, Executive Mayor of Sedibeng Cllr Simon Mofokeng, Executive Mayor of Fezile Dabi, Cllr Jonas Ramokhoase, Executive Mayor of Lesedi, Cllr Busi Modisakeng, Speakers from sister municipalities, Chief Whip of Council: Cllr Thembile Ngquba, Members of parliament and the provincial Legislature, Leaders of political parties representing different political formations, Religious leaders representing different faith organizations, Honourable Councillors, Municipal Manager: Mr. Sam Shabalala, Secretary of the Provincial Legislature, Mr. Peter Skosana, Magistrate, Sipho Sibanyoni, Senior Members of Management and Officials of Council, Dr Joseph Sekolonyane, Executive Director, Vaal University of Technology, Board members of the VUT radio, Mr. Sipho Mosai, Chief Operating Officer, Rand Water, Our football legends, Members of the Community, Distinguished Guests, Media representatives, Ladies and Gentlemen.

Madam Speaker, this year’s budget speech is just a few hours shy from the month of June which incidentally is the month dedicated to the youth. June 16 as is affectionately known, has been set aside as youth day to remember and commemorate the heroic and selfless struggles of the class of ’76. However, today’s youth in our country and our region are confronted with even more challenges and conditions different from those of 1976. Among those is the realization of the ideals envisaged in the call for ‘a better life for all’.  It is for this reason that we meet here today on this occasion to table the budget for the 2010/11 financial year and present the state of finances of our municipality to ensure the proper financial conduct and implementation of our strategic plans and IDP.

Madam Speaker, this occasion may not have come at a better time. I say this because this year the movement of the people, the governing party, African National Congress saw it fitting that we celebrate the 50th Anniversary of Sharpeville Day. It is on this basis that we need to respond to the President’s call that we must make 2010 the year of action. The Jan 8th statement provided us with the line of march by declaring that 2010 is “The year of working together to speed up effective service to the people”.

The Jan 8th statement has focused our attention on some of the main tasks facing local government in 2010, and that our primary focus should be on the provision of services to our people.

The Constitution and the White Paper for Local Government recognised that the three spheres of government cannot function in isolation. Therefore, we would need to bridge the social distance and close the gap that is widening daily between our people and their government.

Given that we are approaching the end of our local government term, we have consciously decided that our IDP and budget will have to bring into practicality the programmes of the ANC-led government for this year, especially the five key priority areas and other related urgent national tasks identified by the President of the Republic of South Africa, in his State of the Nation Address.

In his poem, the world renowned and famous Indian dramatist and author Kalidasa says that:

“The Splendor of Beauty;
For Yesterday is but a Dream,
and Tomorrow is only a Vision;
But Today well lived makes
Every Yesterday a Dream of Happiness,
And every Tomorrow a Vision of Hope.
Look well therefore to this Day!
Such is the Salutation of the Dawn!”

Madam Speaker, on our way to this building today, we were greeted by the splendor of beauty as described by Kalidasa. South Africans united in their diversity celebrating their shared patriotism in great anticipation for the imminent 2010 FIFA WORLD CUP. This great football spectacle will take place for the first time on our African soil after 80 years since its inception. South Africa has been given the honour to host this historic event on behalf of the continent and peoples of the world.

We are only eleven days away from witnessing this great historic event. Needless to say, the captain leading Bafana Bafana squad will be our very own Aaron Mbazo Mokoena, a resident of Emfuleni. We are fully behind Bafana Bafana, we know that they will make us all proud.

PREPARATIONS FOR THE 2010 FIFA WORLD CUP

Madam Speaker, As Emfuleni working together with Sedibeng, we have made significant strides in our preparations for the 2010 FIFA WORLD CUP. As you would know, we will be a base camp for Ivory Coast and Switzerland and providing the necessary training facilities for both teams. We are indeed grateful that our municipality is host to these great national teams.

We were required to upgrade both George Thabe Stadium and Isak Steyl Stadium according to FIFA standards. I am pleased to report that we have met this requirement and have officially handed the two facilities to FIFA on 22 May 2010. On this particular note, I would like to thank VUT for their cooperation and partnership.

All our hospitality facilities underwent rigorous checks and the majority of which were found to be excellent and those needing attention were duly assisted. Furthermore, in terms of bringing 2010 World Cup closer to the people, we have identified Saul Tsotetsi Sports Complex and Vereeniging Civic Theatre as official public viewing areas. We have put systems in place to ensure that our visitors and fans are not inconvenienced.

These include among others, areas of transportation, safety and security, marketing and publicity, disaster management, tourism, sports and recreation. To date a joint operation centre has been established to manage all activities related to the world-cup.

As people of Emfuleni, we are presented with a great opportunity to demonstrate our ability to host events of this magnitude but above all to show our hospitality and humanity to our visitors. We expect that the people of Emfuleni would extend their hand of friendship and sportsmanship to our visitors and give them a warm South African welcome so that they too can enjoy our hospitality and generosity of spirit under the African sun.

2010/11 BUDGET

Despite our successes in stabilizing our administration and working to improve service delivery, Emfuleni has been on the receiving end of many community protests. These protests gathered momentum in the build up to the commemoration of the 50th Anniversary of Sharpeville.

Our people felt that after many years since the dawn of democracy, they needed to see visible service delivery. They complained about wastage of resources, need for basic infrastructure and lack of recreational facilities. Our assessment of delivery for the year under review must shed light on what we have been able to achieve, challenges we are facing and our vision for the future.

Inspired by the words of Kalidasa about tomorrow being a vision of hope, we want to state without fear of contradiction that “a better Emfuleni is in the making”. In doing so, we will tell no lies about our weaknesses and strengths and claim no easy victories about our service delivery record since we know that the road to full attainment of nonracial, nonsexist, democratic and prosperous society remains the hardest ride in our journey

Madam Speaker, In tabling the 2010/11 Budget we are guided by our Integrated Development Plan which outlines priorities for our electoral term of office (2006-2011). In developing the IDP, we consulted widely with communities in the municipal area, business, district municipality and Gauteng province. In addition to this, we are guided by directives from National Government in relation to the Local Government Turn-Around Strategy (TAS). Key issues emanating from TAS include improved revenue management, decentralization of Human Resources and supply chain, reconfiguration of Local Labour Forum, Rural development, LED pilots projects, better coordinated EPWP and risk management.

The total budget has been increased from R2.8 billion to R3.18 billion. The Capex allocation is R367 million. Another guiding principle is that we are not going to add any new projects on our IDP and instead decided to accelerate the implementation of existing projects within the context of our rapid-response strategy called ‘The 90 days programme’ and ‘Turn-Around Strategy’.

Our message is clear Madam Speaker; we would be putting more emphasis on the issue of maintenance as an immediate, medium and long-term goal. We have also identified the issue of illegal dumping and general refuse dumping as a serious environmental issue that stand to pollute our environment and resolved that our maintenance plan should include regular cutting of the grass in and around public buildings, main routes and cleaning and beautification of entrance and central points of our towns.  We are also looking at further capacitating the by-law unit to deal with incidents of illegal dumping. The bylaws governing illegal dumping will be reviewed to include harsher penalties for transgressors. 

Madam Speaker, it is my delightful submission that for the first time in years Emfuleni is moving from disclaimers to receiving qualified audit opinion with the aim to achieving a clean audit. This is evidence of the fact that our governance and stewardship of public finance, assets and resources has improved substantially under the leadership of the Council of the Emfuleni Local Municipality. We remain committed to attaining the provincial goal of a clean audit by or before 2014.

ECONOMIC OVERVIEW

Madam Speaker when we tabled our budget last year we spoke of the worst recession the global economy had seen since the 1930s. The South African economy contracted by 1.8% during this period and almost 870 000 people lost their jobs.

It is, therefore my sad admission that our budget has been developed under the context of tough economic conditions coupled with general decline in payment levels and low collection rate, high unemployment rate, increasing number of indigent families, ageing infrastructure, the migration of people into our area of jurisdiction.

THE GAUTENG ECONOMY

The Gauteng economy continues to contribute the largest share to the national economy. For 2009 it is forecasted that, once more, this contribution will amount to over 33%. As the powerhouse of the South African economy, Gauteng has been at the coalface of the recession during the course of 2009, with more than half the 870,000 job losses occurring in Gauteng. As a result, Gauteng unemployment rate for the fourth quarter of 2009 reached 25.7% an increase of about 5%.

Emfuleni economy is by and large the biggest contributor to the Sedibeng GDP because of its size. However, the unemployment figure of the municipality is much higher than that of the Gauteng province. It is estimated to be slightly over 50% as compared to 25.7% of Gauteng. The majority of the unemployed in our area are comprised of the youth who constitute over 35% percent of the total population. Therefore, we have got to provide creative solutions before this ticking time bomb explodes in our hands.

PROVISION OF BASIC SERVICES

The Minister of Cooperative Governance and Traditional Affairs in his recent Budget Vote on 12 April 2010 said the following about the role of local government and I quote “When you wake up in the morning you expect to press the button on the wall and access electricity and water from the tap, when driving you expect traffic lights to be functional, streets clean and waste being collected, roads well maintained, although some with potholes”.

This captures very well the basics which we must carry out successfully as local government. As Emfuleni we pride ourselves on the fact that over 95% of our households now have access to electricity, water and sanitation services. Our efforts were recognized with a Blue Drop Award for “Water Purification and Consumption. We are also nearing the completion of the Evaton Fire Station at the cost of R20 million. We acknowledge progress made to date on the implementation of the Evaton Renewal Project. However, we still have a long way to go in terms of providing road infrastructure that will facilitate the movement of goods and services in the area.

We are currently engaging the provincial government to intervene decisively regarding roads infrastructure in recognition of the 50th anniversary of Sharpeville. This intervention will be extended to other parts of ELM such as Bophelong, Boipatong and Sebokeng. We will be making an announcement once these discussions have been concluded.

Our own assessment shows that we will need well over R2billion to deal with backlogs in terms of our road infrastructure. We have raised this with relevant authorities and are encouraged that the National Department Cooperative Governance and Traditional Affairs is seized with the same matter and is looking at ways to establish a vehicle that would focus on dealing with such backlogs.

The Budget 2010/11 operational budget makes provision for an allocation of 62.2% for basic services which translate to R1, 9 billion including maintenance and repairs and provision of basic services such as electricity, waste management, water, sanitation, roads and storm-water. 

In terms of capital expenditure we have allocated over R55 million to roads and storm-water. Water and sanitation has received bulk of our Capex at R96, 1 million.

We have also prioritized electricity projects for R52 million including the electrification of Tshepong for R20 million. We all know that an undertaking was made by the President of the Republic, honourable Gedleyihlekiza Jacob Zuma in 2008, that residents of Tshepong will have access to electricity.

The contractor has been appointed and will in the next two weeks commence with the implementation of the project. We have allocated about R30, 3million to waste management projects which include construction of Palm Springs Landfill site and upgrading of mini-dumps. As part of this allocation, we will be rolling out 240 litre refuse bins in Sebokeng which will contribute to a much cleaner Emfuleni.

I am pleased, Madam Speaker, to inform residents of Emfuleni that our vulnerable sewer treatment works, Rietspruit has improved the quality of its effluent discharges into the Vaal River to 87% consistently over the past three months. This is proof that the upgrading, refurbishment and modifications projects currently under way are beginning to bear tangible fruit and bringing us closer to legislative compliance. We thank our partners, the Department of Water Affairs, Rand Water, National Treasury and Gauteng Department of Local Government and COGTA.

Provision of basic service should also take into account the growth in the population and economy. In this regard ELM together with the Sedibeng District Municipality and Gauteng province will continue to prioritize the establishment of the Regional Sewer Scheme which will service areas such as Emfuleni, Johannesburg, Midvaal and Metsi-Maholo.

In our Turnaround strategy we will intensify the process to ring-fence Metsi-A-Lekoa so that it can be used as a springboard towards the realization of the Regional Sewer Scheme.

GOOD GOVERNANCE AND INSTITUTIONAL CAPACITY

Madam Speaker, Vision 2014 as encapsulated in our detailed turn- around strategy will only become a pipe-dream if we do not change the way we have been doing things. There are going to be significant changes in our organizational structures. We are required to achieve a clean audit by 2014, to have capacity to implement capital projects, to mobilize resources, to render effective and efficient services to our people. This will not be possible with the current organizational design.

We are particularly worried about the impact of corruption and the continued pursuit of individual material gains have on the image of our municipality. We have taken a bold stand to root out corruption in our ranks. We are going to name and shame all those that are found to be corrupt and mismanaging public funds for the purposes of personal enrichment.

Corruption in any form or shape would not be tolerated. We must act now, and act together. I make this obvious assertion because, the issue of making local government to work better must not be seen as a government issue, or a municipal issue, but it must be a societal issue; one that occupies the collective conscience of our people.

We are also setting up a dedicated unit to follow-up on the Presidential Hotline queries and make sure they are speedily resolved.

To further strengthen governance, we will be setting up compliance committees such as the performance and risk committees as required by legislation.

ACHIEVING FINANCIAL VIABILITY FOR ELM

Madam Speaker our collection rate remains a big area of concern to us. The information we have is that our payment levels have not improved as we would have hoped. We are currently collecting less than 80% of our revenue. We have taken steps to ensure that officials of the municipality do not owe the municipality. I know that various political parties in the municipality have taken a tough stance on this matter, in relation to councillors owing the municipality. We cannot encourage residents to pay when we are defaulting on our accounts. This actually defies logic.

Many ratepayers have complained about our billing system and reading of meters.  We have set up a dedicated Task Team that monitors progress in this regard. I have taken special interest in the project and as such my office is constantly monitoring progress in this area. The Mayoral Committee has taken a bold decision to go on tender and appoint a service provider to turn around the entire revenue function in the municipality. It is our goal to resolve the billing and meter reading problem in the municipality in a fundamental and sustainable manner. Residents should also take responsibility to submit their readings to the municipality. Valuable information in this regard can be accessed on our website.

However we will also be opening municipal offices in Vereeniging and Vanderbijlpark at least two Saturdays a month to assist ratepayers with account queries and incorrect meter reading.

We have also reviewed our municipal property rates policy to take into account the submission of residents on the rating of agricultural and open spaces.
The business community is invited to take advantage of the business incentive on the payment of outstanding service charges. In this regard they will receive a 30% discount for payment received between March and November 2010.

BUILDING SUSTAINABLE COMMUNITIES

As we soldier on in our pursuit for the swift and rapid implementation of our development plans, we are particularly worried about the quality of work that is being conducted by contractors. Madam Speaker and honourable Councillors, we cannot hide the fact that we have witnessed poor, inferior and substandard workmanship by some contractors.

 It is for this reason that we have resolved to do-away with all those contractors who are cheating the municipality and we have consequently instituted a process of black-listing and removing them from our database so that they are not in a position to do business with our municipality again. In a simple language, we are giving them a red-card.

Madam Speaker, the army of the unemployed youth poses a serious threat to our promising democracy. These young people will fall prey to scavengers who will manipulate them for crime, drug abuse, trafficking, social unrests and all manner of evil.  As part of our vision, we have set aside about R15million to initiate a package of poverty alleviation projects that will benefit the youth and women empowerment programmes. We will also ensure that we build the necessary capacity in my office to ensure effective implementation of these programmes. I must say that this is in addition to procurement opportunities that will be created for all vulnerable sectors of our community.

 The Emfuleni Local Municipality will be implementing projects which will ensure that our communities become sustainable. One area of our focus will be the greening of Emfuleni and beautification of entrances to the municipality. We have partnered with National Department of Water Affairs and Environment, through the Indalo Yethu programme to establish parks and green Emfuleni to the tune of R39, 9million.

This project will also be bolstered by efforts of the Vanderbijlpark Business Chamber (Die Sakekamer) which has also undertaken to invest some capital in the beautification of our entrances. Our partnership with the private sector will also see  Arcelor Mittal injecting R5million to the reroofing project which will benefit 1250 houses in Boipatong and Bophelong.

Phase 2 of Dickinson Park will be implemented to the tune of R40million as part of our precinct development plan. Together with Sedibeng District Municipality we will also ensure that Sharpeville Memorial is upgraded and the Constitutional Walk is constructed. This will also include the upgrading of the Phelindaba Cemetery at the cost of R14.1 million.

Madam Speaker, there were significant achievements on the housing front, which include;
 A total of 2612 houses in various projects. Tshepiso north Extension 3 is nearing completion with a total of 971 now completed. An additional 307 houses with roofs on will be completed and allocated as soon as the contractor is back on site. We have also completed 41 houses in Boipatong and 297 in Sebokeng extension 24. Where allocation of houses has not happened it is because the provincial government is busy with the verification of beneficiaries. Despite all these achievements, we remain gravely concerned about the situation in New Village (Sebokeng), where certain members of the community have taken it upon themselves to disrupt service delivery thereby affecting implementation of this housing project.

Madam Speaker, moving forward we are going to implement the following housing projects in the 2010/11 financial year;

• Golden Gardens/Johandeo Phase 1, where consisting of 350 units.
• Tshepong Phase 2 consisting of 1447 stands
• Eatonside and Evaton Estate with 665 units
• Rus-ter-vaal Phase 1 consisting of 252 units which have been reduced to 122 due to dolomite conditions.
• Boiketlong housing project consisting of over 5000 units, the speed of which will be determined by the discussions we are having with the Provincial Government regarding land acquisition.
• Boipatong housing project consisting of 225 houses;
• Tshepiso North Extension 1 and 3 consisting of 454 housing units;
• Tshepiso South Extension 1 consisting of 150 houses
• Completion of the Boipatong and Lakeside Extension 4 housing projects.

GROWING AND EXPANDING OUR ECONOMY

Emfuleni Municipality has in the recent past experienced increased economic growth and budget expansion. A significant point to note is that our budget has grown by 100% in five years. This sudden growth is testimony of the correctness of our strategies and interventionist programmes. Moreover, it is on the basis of this growth that makes us resolute in our resolve that we are an aspiring metro and we therefore see ourselves as being on the correct path to being a future metro.

However, I must hasten to say that, our foundational determination for being a metro has been met with disappointing levels of service standards to the detriment of our customer-care principles. We need rigorous implementation of ethics and intensify the implementation of Batho Pele principles and emphasise the importance of upholding a strong work ethic around the notion of “People First”.

Madam Speaker, a vision for a better Emfuleni means that we must deal with the twin challenges of a modern developmental state, namely underdevelopment and poverty. One of the weaknesses of our municipality is that we did not have a comprehensive local development strategy that will ensure that we diversify our economy and attract investments. We will be tabling the final LED strategy in the next council meeting for approval. Areas where we have marshaled investments include property development, retail sector, tourism and expansion of the operations within the manufacturing sector.

In terms of current developments, we have approved building plans to the value of R570 million in the first three quarters of the 2009/10 financial year. Resulting from these developments which are mainly in the retail, residential and commercial property sector, we have created 171 000 temporary jobs and 20 000 permanent jobs. Included in this figure are major developments such as Makro, and Powerville development expansions.

Furthermore we have just approved a massive development known as the Bedworth Park Extension 8, consisting of predominantly retail and commercial activities, to the value of R4billion to be invested in the next 5 years. This development alone will create 15 000 to 20 000 jobs.
We are currently considering a proposal from Konti Steel with a possible investment of R400 million over 5 years and nearly 1500 permanent jobs to be created. The development will be based in Powerville, Vereeniging.

We have not managed to leverage on the downstream manufacturing activities as proposed by the Sedibeng Growth and Development Strategy. Agriculture including agro-processing remains a viable sector that presents myriad of opportunities for growth of our local economy. Our economy continues to favour established businesses to the detriment of small businesses and cooperatives. The rate of labour absorption is also very slow hence the high unemployment rate.

Against this backdrop we have set aside R15million to speed up the implementation of the LED strategy. Among projects to be implemented as part of this strategy, is the establishment of business centres or hubs for SMME’s, establishment of commonages, car wash pilot project in Sebokeng , informal trading projects, informal trading stalls and revitalization of hydroponic farms. The Gauteng Province will also be assisting us to expand the existing Agricultural Hub in Emfuleni.

Rural development forms part of the mandate of the current administration. There are numerous projects we have identified in the area of health, social development and environmental management to the tune of R15million. About R2million of this budget will be spent on assisting subsistence farmers in ward 25 to access water for irrigation.

Re bua ka ho tiya ha re re pono ya rona, ha se feela hore re etsang kajeno ebe ho feela moo, re tseba hore seo re se etsang kajeno se ama seo se tla etsahalang ka moso. Ke seo leano la rona la 2014 lese hlakisang.

TARIFF INCREASES

Madam Speaker, after steep increase by Nersa for electricity early this year by 24.8%, we have decided as ELM to increase our tariffs in a manner that protects the poor and those who consume less electricity. Rates (MPRA) will increase by 9.0%. Electricity for the higher end of the market will increase by 22. 5% while for lower end of the market will increase by 15%. However, bulk consumers and industries will pay 24.8% more for their electricity consumption in line with Nersa increase.

Madam Speaker, water which is a basic necessity for all our people will only be increased by 14.5%. There will also be 8.0% increase on sundry charges.

CONCLUSION

Madam Speaker, it is time for all of us to roll up our sleeves and ensure that quicker service delivery become our daily mantra. We are all marching towards a better Emfuleni with much less potholes, better services to our people, improved infrastructure and a competent, caring and committed workforce.

As I table the IDP and Budget, I would like to thank the MMC for finance for providing political guidance to the finance team led by the CFO, Members of the Mayoral Committee, Section 80 Committee on finance under the leadership of Councillor Motsiri, Budget and IDP offices, the Municipal Manager for his outstanding and visionary leadership, the Budget Steering Committee, Business Community, Ward Councillors, organizers of the event, speaker’s office and Bishop Zondo. Special thanks to my wife and children for their unwavering support; and last by not least, Madam Speaker for hosting and helping to organize this event.

I thank you.