Highlights of SoNA 2013 Implications for DCoG

1. Highlights of SoNA 2013Implications for DCoG DCoG Presentation

2. Highlights of SoNA 2013 • Economic development and national planning • The State of the Nation address focused strongly on the National Development Plan as the vision of the country for the next 20 years; • The President emphasised the importance of job creation with the NDP seen as the vehicle to create 11 million jobs by 2030; • Engagement with business, labour and other social partners to remove obstacles to growth and • Just and equitable compensation for land claims. • Infrastructure development • Spending of R860bn on infrastructure between 2009 and March 2013 (including commencement of water augmentation for Matimba and Medupi power stations; bulk water distribution system for the De Hoop Dam; the Majuba Rail coal line; development of the City Deep inland terminal; expansion of Pier 3 of the Durban Port); • R47bn renewable energy contracts an R800m green fund; and • Integration of transport in Cape Town, Nelson Mandela Bay, Rustenburg. eThekwini and Tshwane and Housing support in the Eastern Cape, Gauteng, Free State and North West. This forms part of SIPS 7 where DCoG has the leading responsibility.

3. Highlights of SoNA 2013 • Urban development • Using Census data and NDP analysis the President referred to the need to assist municipalities in addressing the rapid process of urbanisation; • He highlighted the need to develop a national integrated urban development framework and • The management of urbanisation should also be cognisant of the continued importance of rural development for government. • Community protests and interaction • Regarding protest activity, the President urged: “people to exercise their rights to protests in a peaceful and orderly manner.”; • Whilst promising to act against protests that violate the rights of others, the President also undertook that: “government departments at all levels must work closely with communities and ensure that all concerns are attended to before the escalate.”

4. Themes of the SoNA  Besides economic development and infrastructure, the State of the Nation Address was structured according to the following themes: • Renewable energy programme • Extending basic services • Initiatives to combat corruption and crime • Youth job creation • Mining • Human settlements • Education • Health • Land restitution/land reform • Urbanisation • Crimes against women.

5. Implications for DCoG • INFRASTRUCTURE • Support to the National infrastructure Programme; • Continued focus on provision of required infrastructure and service delivery in rural areas including electricity, water, sanitation and roads; •  Participation in the process of addressing the housing problems in the mining towns: specifically the plans for Rustenburg, Lephalale, Emalahleni, West Rand, Welkom, Klerksdorp, Burgersfort/Steelport, Carletonville and Madibeng; • Improved sector coordination to ensure sufficient supply of required services in the areas of infrastructure expansion e.g. water, electricity and renewable energy. • JOB CREATION • Assisting in the addressing youth unemployment (CWP, MISA, etc); • Continuation of a job creation focus especially in the local government sector and ensuring a LED focus though strengthened social dialogue and cooperation between government and business. A renewed focus on the sectors identified by the NDP as job drivers, including infrastructure development, tourism, agriculture, mining, manufacturing and the green economy.

6. Implications for DCoG • LAND • Restitution of Land Rights to those who were dispossessed by the 1913 Law. One of the findings of the assessment of state of governance of traditional institutions conducted in 2011/12 indicated that there are landless traditional leaders and communities in Free State and Mpumalanga provinces. CoGTA needs to facilitate allocation of land to the landless traditional leaders and communities in the two provinces; • The way in which communal land is managed will have to be reviewed to ensure that rates and taxes also apply equitably to areas where people have settled and are receiving the delivery of services; • Municipalities require more land for development and settlement of people, which in many instances belong to other government departments or public entities. • Non-proclamation of township results in challenges to establish human settlements, investment in infrastructure and the raising of taxes. • SMMEs • One specific issue of relevance to the daily operations of DCoG was highlighted under the theme of support to small business. Specifically the payment of SMMEs within 30 days. In this regard Departments are required to submit monthly reports so that the Presidency can monitor progress in this regard.

7. Current and future DCOG activities supporting the SoNA: Urbanisation • 1. To support the President’s call for all three spheres of government to work together towards managing the new wave of urbanisation: • DCoG is currently developing a national integrated urban development framework; • CoGTA Ministry is considering the establishment of an Inter-Ministerial Committee to guide the process of developing an urban policy; • DCoG has set up internal and external task teams, including representatives of other government departments, to provide supporting work on the urban policy process; • RSA is chairing BRICS in 2012. DCoG will use this opportunities to draw lessons to strengthen the development of policy framework on urbanisation.

8. Current and future DCOG activities supporting the SoNA: NDP 2. Supporting the NDP as the roadmap for development of South Africa over the next 20 years: • DCoG will support improvements in the governance system by developing and implementing a policy framework for a differentiated approach to municipal financing, planning and support; • Establishing a Government position on the differentiated approach to local government supported by a framework that will enable data driven decision making to differentiate municipalities in terms of their different contexts and capacities; • Enhanced integrated development planning at provincial and local government in line with national priorities ; • Review and amend the framework for powers and functions for provincial and local government with recommendations for differentiation and functional and fiscal alignment.

9. Current and future DCOG activities supporting the SoNA: IDP • 3. To ensure that all municipalities outside of the metros and secondary cities have IDPs that focus on a set of priority services and are clearly linked to budgets: • The target is focused IDPs linked to budgets for essential services implemented in the selected municipalities by 2014; • Develop a revised IDP framework focused on a foundation of key priority services; • Engage provinces to implement the IDP framework in targeted municipalities; and • Monitor and review the quality of IDPs and their links to budgets and take corrective actions.

10. Current and future DCOG activities supporting the SoNA: Improvement of Access to Basic Services • 4. To support the President’s call for the improvement of Access to Basic Services by communities DCoG will ensure that: • Service delivery management structures for each sector are established and supported by the Municipal Infrastructure Support Agency MISA; • MoUs amongst key participants and terms of reference for service delivery management structure developed for each sector; • Working with the Presidency (Monitoring & Evaluation) to establish service delivery norms and standards for basic services and determine and quantify service backlogs per municipality according to these norms and standards; • Determine and agree on a portfolio of investments needed to overcome the backlogs per municipality; • Service delivery backlogs for each sector are mapped and projects and funding coordinated per municipality to improve access to basic services to achieve the following 2014 targets: • 100% of households have access to basic level of water ; • 100% households have access to basic level of sanitation; • 75% of households have access to basic level of refuse removal; • 92% of households have  access to electricity.

11. Current and future DCOG activities supporting the SoNA; LGTAS and MISA • 5. DCoG would facilitate sustainable infrastructure development as part of its LGTAS programme in cooperation with MISA: • Conduct Municipal Diagnosis and Assessment; • Providing Technical Capacity Support - this entails the provision of specialised technical support in response to the diagnosis process; • Development of technical capacity for struggling municipalities; • Monitor and evaluate the effectiveness of support provided to municipalities; • Upscale the deployment of engineering and planning experts to prioritized municipalities; and • Provide targeted infrastructure support to prioritized municipalities through the deployment of technical skills

12. Current and future DCOG activities supporting the SoNA: CWP • 6. Ensure that the Community Work Programme is implemented by focusing on the following: • Identifying the work programmes that will deliver this result, the sources and modalities for funding an expanded programme of this scale and the institutional design and intergovernmental collaboration that will be needed to deliver the programme as a government wide initiative; • Establish a National Steering Committee that provides strategic direction to the CWP, facilitates intergovernmental memoranda of agreements to broaden participation by other government departments and monitors and advises on operations;and • Undertake an institutional review for scaling up.

13. Current and future DCOG activities supporting the SoNA: CWP • 6 (cont).The Community Work Programme will also be implemented by : • Increasing the participation rate of 332 500 in 228 sites of which 253 360 are work opportunities at 100 days per year by 2014/2015; • Ensure that CWP is implemented in all 23 District municipalities; • Ensure that CWP is implemented in 64 of 108 LGTAS municipalities; • DCoG is maintaining the targeted number of work opportunities. Maintenance in relation to the 171 500 work opportunity targets relates to continuous replacing participants who exit the programme. This entails continuous recruiting not only to ensure that our numerical performance does not fall below the target, but also to increase the number of work opportunities in an effort to move closer to the 1 million participants Cabinet committed to. This will be done largely by increasing the number of participants in existing sites.

14. Current and future DCOG activities supporting the SoNA: Fight against corruption • 7. Improve efforts to fight corruption by focusing on the following activities: • Creating a professional culture within municipalities which is intolerant to unethical conduct, fraud and corruption; • Strengthening community participation in the fight against corruption in municipalities; • Strengthening relationships with key stakeholders such as SALGA, employee representative unions, communities and state agencies, including Treasury, Hawks, NIA; • Detection of unethical conduct, fraud and corruption; • Taking appropriate action in the event of irregularities; • Strengthen anti-corruption capabilities of municipalities; and • Increasing trends of corruption have necessitated the need to review the mandate of the Anti-Corruption Unit in DCoG.

15. Current and future DCOG activities supporting the SoNA: Enhancement of municipal capabilities re finane • 8. Enhancement of the administrative and financial capabilities of municipalities through: • Improving audit outcomes with the number of municipalities with unqualified audits increasing from 41% to 100% • Facilitation the appointment of Municipal Public Accounts Committees; • Facilitation the appointment of external Municipal Audit Committees; • Assist municipalities to develop action plans to address previous audit outcomes, particularly policies and processes in high risk areas such as procurement (supply chain) and asset management; • Support municipalities to establish internal audit functions • Reviewing the equitable share formula; • Improve the capacity of municipalities to spend more effectively; and • Introducing measures to ensure greater transparency in procurement processes and ensuring better value for money.

16. Current and future DCOG activities supporting the SoNA: Enhancement of municipal capabilities re finance • 8. Ensure that the administrative and financial capabilities of municipalities are enhanced by: • Supporting the improvement of revenue management with the average monthly collection rate on billings to a minimum of 90% (excluding arrear amounts) this will be done by monitoring and assisting municipalities to meet the following requirements: • Cost-reflective tariff structures; • All properties accurately captured on cadastral system; • Sound billing systems so that all properties are properly billed; • Accuracy of meters and correct reading of meters; • Accurate and reliable billing systems ; • Responsive citizen care systems to deal promptly with billing queries and complaints; • Development of credit control and debt collection policies; • Updating of indigent policies; and • Development of by-laws to give effect to policies.

17. Current and future DCOG activities supporting the SoNA: Enhancement of municipal capabilities re finance • 8 (cont). Ensure that the financial capabilities of municipalities are enhanced by: • The percentage of municipalities with debtors more than 50% of own re venue to be reduced from 24% to 12% by: • Assisting municipalities to put in place credit control policy and measures; • Assisting municipalities to prepare and implement viable indigents policies • Assisting municipalities to recover debt from government spheres, departments and entities • Developing a policy guideline for the review of outstanding debt and writing off of debt that is uncollectable

18. Thank you