
=====================================================================
Budget Speech 2001/02 for Office of the Premier
=====================================================================

Speeches and Media Releases
 Premier's Office

[         w

 EASTERN CAPE PROVINCIAL GOVERNMENT
BUDGET SPEECH 2001/02
 BY PREMIER STOFILE
 5 MARCH 2001



Mr. Speaker
 Members of the Executive Council
 Members of the Legislature
 Distinguished Guests
 Ladies and Gentlemen

INTRODUCTION

There is no doubt in my mind that the Province of the Eastern Cape shall succeed to rid herself of the underdevelopment and poverty status 
it languishes in at the present moment. I believe we are set to be an example of human triumph over deep historical socio-economic 
disparities that condemned millions of our people to dehumanising living conditions. We are confronting this challenge fully conscious of 
the fact that despite the technological advancements and wealth accumulation of the last century, the increasing proportion of the world 
population continued to join the ranks of the poor and destitute. This means the challenge is a mammoth and a complex one.

This 21st century challenge is the strategic thrust of the Office of the Premiers plans and operations. Its mission is to ensure 
integrated service delivery to the citizens of the Eastern Cape through strategic leadership, critical interventions and effective 
provincial governance. In carrying out this mission the department seeks to ensure that benefits accruing from any effort from economic 
development to capacity building should be enjoyed by especially the most deserving people, the poorest of the poor, in a sustainable 
manner. Our experience in governance and in pursuit of the noble development goals outlined in the RDP has taught us a lesson that unless 
every role-player joins hands in an integrated manner to address the challenges I have alluded to earlier, those goals would remain elusive 
for many more years irrespective of our great intentions.

As indicated in my previous policy speech we have a mammoth task of coordinating government policy development and implementation. It is 
my considered view that the Office of the Premier is for the 2001/2 financial year in an even better position to meet this challenge. A 
clear direction and greater focus on coordination was set by the government after the general elections of 1999 for the period up to 2004. 
In addition the budget Indibano held in the province in mid-2000 identified four key priority areas for the next financial year. These 
included integrated rural development, transformation of the civil service, meeting of basic needs and fighting HIV/AIDS.

In our first term we sought to integrate the civil service and to stabilise it. We also tried to attend to the delivery of some social 
services. But the machinery had to be right. This was our uppermost priority. The second term naturally challenges us to step up service 
delivery and to improve its quality. To this end the well-functioning of the government clusters is very important. The social needs 
cluster must get special attention. So also must the infra-structure development. So the co-ordinating role for the Office of the Premier 
continues to be a major function of this Department. We must continue to make sure that all Departments and government institutions are on 
side. For this reason, provincial government cluster committees were strengthened for integrating plans and programs; the Intergovernmental 
Forum was set up and operationalised taking on board representatives of other spheres of government and parastatals; and generally the 
government is increasingly operating as one entity instead of disjointed and frantic efforts to register individual successes.

Some of the challenges still facing us can be illustrated as follows:-

* Transformation remains our greatest challenge and we will spare no effort to ensure that the government machinery is changed to be a 
critical catalyst in changing our society for the better. Central to these efforts is the availability of public services in requisite 
quality and quantity and their accessibility to especially the rural communities. The actual programs aimed at improving service delivery 
include Batho Pele (people first) the performance management system and district development. In this programme we are assisted by the 
British Department of International Development (DFID). As an incentive for better performance within the department and among the 
departments, Premiers Awards will be given. This is also in line with our participation in the South African Excellence Foundation (SAEF).
* Now that greater successes are being made in fighting corruption with more detections, disciplinary actions, prosecutions and convictions 
more preventative measures will be introduced in terms of the PFMA through such initiatives as the fraud prevention plan.
* Swift progress will need to be made regarding the implementation of the Integrated Sustainable Rural Development Strategy (ISRDS):Co-
ordination within the policy research branch with the assistance of the Eastern Cape Socio-economic Consultative Council (ECSECC) and the 
Eastern Cape Appropriate Technology Unit (ECATU) will be stepped up. The Office of the Premier will be the provincial nerve centre with a 
comprehensive data base on rural development policies, programmes, planning information and on progress made in implementation.This will 
assist in monitoring and evaluating progress as well as providing a planning framework for anyone contemplating an intervention strategy to 
improve the lives of the rural people.
* The intergovernmental forum of various spheres of government is to be strengthened. Efforts will be embarked upon to fully take on board 
parastatals who have many development programmes aimed at the rural areas to ensure better integration. We have already involved Eskom and 
Telkom in our planning. The new municipalities will also have to come on board long before the start of their financial year.
* During this financial year the programme of getting the records of civil servants right will be finalised with the assistance of the 
Swedish government, so that required skills especially among the personnel additional to the establishment can be identified and re-
deployed appropriately.Needed training in line with the skills development legislation will then take place. The recently held job summit 
has resolutions that guide us on how to handle the matching of personnel with quality services.
* There will be better communication with the Eastern Cape public and stakeholders as the government outreach programme would be more 
regularised. It will be integrated with the overall communication strategy for the key priority areas of government operations for the new 
financial year. Findings and recommendations of the Government Communication and Information System (GCIS) audit are expected and steps 
will be taken to address identified weaknesses,
* A master systems plan for provision of holistic and comprehensive information technology will be finalised and will create a framework 
for even the expected district development programme with the assistance of the State Information Technology Agency (SITA).
* The Youth Commission will be governed by an amended legislation which will ensure that it is in line with the National Youth Commission 
in structure and in function. This will lead to a truly independent Youth Commission operating as a public entity.

Mr. Speaker may I also take this opportunity to give more detailed plans for each programme of the Office of the Premier on how the 
allocated resources will be utilised. Kindly note that comprehensive action plans in line with the budget of programmes will be submitted 
to the appropriate standing committees in due course and later on the departmental business plan.

The resources required to carry out these activities include additional staff as well as the training of existing staff, the purchase of 
subsidised vehicles for field workers and the establishment of effective information technology network systems. The location of all Office 
of the Premier staff in one building will also assist in streamlining the activities of the department. Some of the staff have already 
started moving to the former Eastern Cape Development Corporation (ECDC) building in Bisho. All the remaining staff will move over the next 
few months to these premises, with the exception of the Information Technology (IT) staff. The IT branch will remain in the present/current 
premises in Indwe house in Bisho, which has been well equipped for their tasks.

PROGRAMME 1: ADMINISTRATION SERVICES

Administration services is a support services component within the Office of the Premier. Functionally, the component is rendering 
financial management service; human resources practices and auxiliary services for the Office of the Premier. The allocation to this 
programme shows a slight decrease from the budgeted amount of R32,081 million in the 2000/1 financial year to R27,096 million for the next 
financial year.

Mr Speaker, a Key Performance Area (KPA) for the next financial year includes the provision of effective personnel administration. This 
will involve, among other things, improving the process of the filling of posts; improving the payment of termination benefits; and 
effective management of staff files. This programme will also focus on the implementation of the fleet management policy for the Office of 
the Premier, ensure proper procurement procedures and the keeping of an accurate asset register. It is also the intention to separate the 
Finance component from the administration division as from the start of the new financial year. This will enable the Office of the Premier 
to fulfil the requirements as set out in the Public Finance Management Act. A Chief Financial Officer will be in place through the 
recruitment process initiated by the Provincial Treasury.

The Office of the Premier will continue to give priority to the provision of bursaries. An amount of R300 000 has been allocated for this 
purpose. These bursaries will be allocated and coordinated in a consultative manner in line with provincial policy which targets applicants 
from disadvantaged backgrounds for specific skills and careers.

These efforts are intended to be of benefit to both the department as well as the entire provincial administration.

PROGRAMME 2: MANAGEMENT ADVISORY SERVICES

The key components that make up this programme are Organisation and Work Study, Performance Auditing and Administration Evaluation. The 
budget allocation for the 2001/2 financial year shows a slight increase from the budgeted amount of R4,634 million in 2000/1 to R5,953 
million for the 2001/2 financial year. This branch as is the case with most branches in the Office of the Premier provides a support 
service to all provincial government departments to promote effective organisational development and functioning.

In the year ahead this branch will be focussing on the relevance of functions in the various provincial government departments to the 
strategic plans of the departments. It is projected that 95 per cent of functions in the departments will be appropriately placed by March 
2002. The branch will be undergoing some change in approach from pure work study control to proactive organisational development. This will 
assist in steering and guiding departments rather than control of structures. It will play an important advisory role in the determination 
of functions to be assigned to the local sphere of government and also in the district development process.

The branch will also be giving high priority to the preparation and implementation of policy guidelines for monitoring and evaluating the 
Transformation process of the public service as well as the Public Service Delivery process. This will also include the setting of 
performance indicators and service standards in respect of provincial government administrative processes.

PROGRAMME 3: POLICY RESEARCH, PLANNING, STRATEGY DEVELOPMENT AND SPECIAL PROGRAMS

The priority accorded by the provincial government to the enhancement of its policy making capacity, planning, co-ordination, facilitation 
as well as monitoring and evaluation of programs inclusive of special programmes in respect of gender, youth, the disabled is evident from 
the fact that the allocation to programme 3 has increased from the budgeted 2000/1 allocation of R16,252 million to R22,540 million for the 
coming financial year, a substantial increase of more than R6 million.

The Integrated Sustainable Rural Development Strategy (ISRDS) recently announced by the President has incorporated proposals from the 
provincial Rural Development Strategy which the Office of the Premier and the Eastern Cape Socio-Economic Consultative Council (ECSECC) 
prepared in close consultation with various stakeholders in and outside of the provincial government. The branch and other stakeholders as 
well as ECSECC and the Eastern Cape Appropriate Technology Unit, ECATU, will be playing a key role in facilitating the implementation of 
the ISRDS and other related programmes in the coming financial year.

The Technical Intergovernmental Forum which I referred to in last years budget speech is now operational. This branch will works closely 
with the Director-general to ensure that this forum as well as the various cluster committees provide the necessary co-ordination to 
government structures in service delivery and in the implementation of the ISRDS.

There has been substantial international interest in working with the government to plan and implement its rural development strategies. 
One such initiative which will gain considerable momentum over the next year is the establishment of an intergovernmental arrangement 
between the South African and German government to fund a rural livelihoods programme over the next three years. The rural livelihoods 
programme has already identified geographic areas as well as specific project initiatives in the province which will promote income 
generating activities among various groups in the rural areas, especially the women groups, the disabled and the youth.

The branch has also worked closely with various government departments to produce a Spatial Development Plan document as well as one 
setting out the social and infra-structural backlogs in capital/ development expenditure for the province. In the year ahead the branch 
will be giving priority to integrating the policy guidelines in these documents, as well as those set out in the Provincial Rural 
Development Strategy, with the provincial governments medium term budgeting process. This will facilitate the process of ensuring that 
resource allocations are directed at the geographic areas in the province with the greatest need as well as those areas with the greatest 
economic development potential.

A number of pilot projects have been undertaken in recent years by the Office of the Premier. The objective with many of these initiatives 
has been to identify innovative ways of planning and implementing projects so that previously disadvantaged households, particularly in the 
rural areas of the province, obtain the maximum benefit from available resources. The lessons learnt with these projects will be documented 
in the year ahead with a view to making the information available to government departments and other agencies involved in service 
delivery. There will be a reduction in the number of projects implemented through the Office of the Premier with the aim to phase them out 
by the end of the financial year. Appropriate departments must implement relevant projects and our role will be to monitor and evaluate the 
projects.

The branch will also be giving high priority to the establishment of a development and management information system that enables the 
Office of the Premier to effectively monitor and evaluate provincial government policies, programmes and projects. The continuous updating 
of the provincial governments Geographic Information System will play a key role in this process. To this end R4 million of the budget is 
set aside to establish the GIS.

In implementing the function of co-ordinating the development of policy in the Provincial Administration, in the 2001/02 financial year 
this Branch will continue to give technical support to Provincial planning initiatives such the Task Team that is presently preparing 
Provincial legislation to guide Spatial and Physical Planning initiatives in the province. This legislation is due for finalisation in the 
coming financial year.

A large part of the budget of this programme goes to the two parastatal bodies funded by this department, the Eastern Cape Appropriate 
Technology Unit (ECATU) and the Eastern Cape Socio-Economic Consultative Council (ECSECC). The branch will be giving high priority over the 
next financial year to ensuring that there is close alignment between the strategic plan of the Office of the Premier and the activities of 
the these two bodies.

There will continue to be a focus on development initiatives that make breakthroughs in enhancing the provincial governments service 
delivery programme. It should also be noted that the two public entities have to comply with the Public Finance Management Act.

With regard to the Special programmes initiatives the following areas will receive particular attention:

* the training of gender focal points and Special Programme Units (SPUs) in the various provincial government departments on the gender 
legal framework, data collection and planning gender related programmes.
* the establishment of a statistics database and ensuring that disabled persons have ready access to this information for planning 
purposes. In addition the database should be used to determine skills and expertise for employment opportunities for disabled persons 
throughout the province.
* The establishment of a youth database with the aim of coordinating youth programmes such as the HIV/AIDS programmes and youth economic 
empowerment with the Youth Commission and other role players. The structure of the youth component of the programme will be reviewed to be 
in line with the amended Promotion of Youth Affairs Act, 1995. The amended legislation aims at reducing the number of commissioners, direct 
political relationship with the Provincial Legislature, establishment of youth development structures and implementation of programmes at 
municipal level; and closer co-operation with state institutions and non-state agencies. An integrated youth development strategy should be 
implemented from May 2001. The youth has also to participate in economic transformation and the Commission is working closely with the 
Department of Economic Affairs, Environment and Tourism in this regard. The budget allocation for the Youth Commission is R3,040. The 
Commission will directly account for the use of these funds as a public entity.

With the Special Programme initiatives, high priority will be placed on ensuring that provincial government departments have operational 
Special Programme units and include Special Programme considerations in the planning and implementation of their projects.

PROGRAMME 4: COMMUNICATION AND INTERGOVERNMENTAL RELATIONS

The Communications and Inter-Governmental Relations programme aims to lead and co-ordinate government efforts to:

* Communicate with the public and stakeholders through the independent media, government media as well as grassroots linkages and to 
mobilise them behind key government programs, and
* Establish new and promote existing international linkages as well as relations between various spheres of government in South Africa to 
improve the impact of development initiatives.

The budget for this programme for the 2001/2 financial year has increased from the budgeted figure of R4,245 million for 2000/1 to R6,598 
million in 2001/2. This reflects the increasing priority that is given, within the scope of limited funds, to the activities of this 
branch. Most of the additional funds will go into personnel expenditure to cover the costs of the filling of a number of critical posts. Of 
the thirty-two (32) posts in the programme only twelve (12) are currently filled. The branch thus operates at 37% capacity of the requisite 
human resources.

In the year ahead the branch will focus on the development of a communication strategy that improves public access to development 
information at the disposal of the state in order to help them realise their constitutional and legal right of access to information.

Specific communication strategies and campaigns will also be developed and implemented with a view to disseminating information and 
dialoguing with the public on high priority issues such as rural development, service delivery improvement, transformation of the civil 
service and the society as well as HIV/AIDS .

As resolved by the Executive Council last year greater co-operation will be built with the media especially the public and community radio 
stations with the establishment of a tele-media conference centre that would help eliminate their distance and resource barriers.

A communication strategy will also be finalised to inform the public about what the government is doing on especially the key priority 
areas in collaboration with the Government Communication and Information System (GCIS). It will also mount a sustainable communication 
programme along the key phases of governance from maximising the publicity of policy pronouncements from the opening of the legislature, to 
quarterly comprehensive communication programmes.

The branch will also give priority to facilitating participation of the Eastern Cape municipalities in international relations. There will 
be close liaison in this regard with the Eastern Cape Local Government Association (ECLGA) and the provincial department of Local 
Government and Housing. It is necessary that all municipalities should have access to the policy framework and resource support to 
establish international linkages.

A further focus area will be the effective co-ordination of programmes between the various spheres of government and carrying out a review 
of integrated development initiatives.Environmental scanning will be strengthened with greater capacity being built across departments to 
be more responsive to for example media reports.

Priority will also be given to ensuring that there is proper co-ordination between the various government agencies in the utilisation of 
existing international co-operation agreements as well as the promotion of new ones.

PROGRAMME 5: LEGAL ADVISORY SERVICES

This programme is responsible for providing a legal advisory service to all provincial departments, by giving legal opinions and the 
drafting of legislation. This division also facilitates the handling of litigation by or against the provincial government through 
interaction and assistance to the State Attorney. It also assists in disciplinary inquiries and other labour matters as well as providing a 
gazette service to all provincial departments. It should be made clear, however, that in terms of the Disciplinary Code no lawyer admitted 
to practice in South Africa should be a representative of either the employer or the employee in disciplinary hearings.

The budget allocation for this programme shows an increase From the 2000/1 budgeted amount of R1,945 million to R3,375 million for the 
2001/2 financial year.

The activities of this division are of an ongoing nature. It provides legal support to all departments of the provincial administration.

In the Strategic plan of the Office of the Premier it is stated that a measure of the performance of this programme is that there should be 
a reduction in the percentage of the government budget that is expended as a result of rulings by courts of law relating to legal aspects 
that should have been taken into account by government policies, programmes and projects.

Key activities in the year ahead for the Legal Advisory Services division is the handling of all court processes for the provincial 
government with a view to avoiding unnecessary litigation and the resultant wasteful expenditure. The division will also look at the 
rationalisation of all archaic legislation to be in line with the Constitution.

The establishment of an efficient and effective legal resource centre and the rendering of an effective provincial government gazette 
service will also be receiving priority as will the co-ordination of legal services. In this vein we are examining practical ways of 
establishing a shared legal services centre within the Office of the Premier.

PROGRAMME 6: HUMAN RESOURCE MANAGEMENT

The key focus of this programme is the development and monitoring of the implementation of human resources management policies, practices 
and systems; the optimising of proficiency through the implementation of effective training and development; ensuring of effective and 
efficient employment relations and practices in the Eastern Cape provincial administration (ECPA); and the development and co-ordination of 
employee assistance programmes.

The budget for this programme shows a slight increase from the budgeted amount of R7,631 million in the 2000/1 financial year to R9,541 
million for the 2001/2 financial year,

A key performance area for programme 6 in the next financial year will be the preparation of an effective human resource management plan 
for the provincial government. The corresponding key output will be the establishment of a system that enables effective monitoring of the 
transformation process in the provincial government.

This programme will also provide administrative and logistical support to the Integrated Provincial Support Programme (IPSP) which the 
provincial government is undertaking in close liaison with the British governments Department for International Development (DFID)

The training division in this branch will be co-ordinating the implementation of key strategic training courses for staff at all levels of 
the provincial government in key competency areas.This division will also co-ordinate the Skills Development Levy Act, Skills Development 
Act and the Human Resource Development Plan in the Province. The Bursaries in departments have not been monitored closely with many of our 
bursars disappearing without honouring their obligations. It will be the responsibility of this division to ensure that the departments 
have accurate records of the bursars and are following up on the commitments.

The branch will be co-ordinating and monitoring the implementation of the Batho Pele or service delivery project at head offices, district 
offices and government funded institutions in the province. The objective here will be to establish a realisation of the principles of the 
Batho Pele White Paper and the granting of Premier awards to recognise good performance by provincial departments.

The labour relations division will be giving priority to developing a Provincial Labour Relations Policy framework which can be utilized by 
provincial government departments. The division will also continue to ensure that collective agreements, labour relations legislation and 
policies are implemented fairly, uniformly and effectively so as to promote sound labour relations in the province.

One of the objectives of the branch for the next financial year is to improve Human Resource data accuracy, integrity and ownership in 
provincial government departments. A specific target that has been set in this regard in the Strategic plan of the Office of the Premier is 
that 80 per cent of provincial departments would before the end of the 2001/2 financial year have updated and accurate HR records.

The branch will also over the next year be interacting with provincial government departments to facilitate increased acceptance and 
understanding by line managers of their role in people management and improved participation and ownership by them in HR planning and 
implementation.

PROGRAMME 7: INFORMATION TECHNOLOGY

The goal of this programme is the co-ordination, development and deployment of cost effective information technology solutions in the 
provincial administration.

The Information Technology Programme is divided into four sub-programmes to provide the following :

* I.T. Policy Development and Implementation
* Systems Development and Programming
* Office Automation and Operations
* Information Technology Networking

The budget allocation for this programme has increased from R17,640 million in 2000/1 to R21,347 million for the 2001/2 financial year.

With regard to the IT Policy Development and Implementation division a key activity over the next financial year will be the establishment 
of a prioritised Master System Plan Document which facilitates a holistic and strategic deployment of I.T. solutions in the province.

The Systems Development and Programming division will be focussing on the development of new computer systems that work according to user 
specifications.

The Networking division will be installing new computer cabling and related equipment.

These new network points will facilitate access to transversal and home grown systems.

In addition high priority will be given to the maintenance of existing network infrastructure. There needs to be a high availability of the 
network to all end users.

This division will also be installing additional diginet lines as a result of the Social Security Project and the district development 
programme. The objective here is to ensure that all end users have proper access to the network.

The Office Automation division will be ensuring that the necessary arrangements are made for providing and maintaining hardware and 
software required by various provincial government departments.

This division will also ensure that the necessary Financial Management System (FMS) and PERSAL records are processed by the State 
Information Technology Agency (SITA).

The branch as a whole is responsible for ensuring that there is a clear information technology strategy in the province. This includes the 
regular co-ordination and management of the State Information Technology Agency (SITA) contract.

Whilst the process of transferring certain functions to SITA and the creation of the Provincial Government Information Technology Officer 
(PGITO) office is taking time , the support rendered by the provincial I.T. is expected to be of a high standard and quality. The fact that 
none of the vacant senior posts in the branch (Chief Director ,Director and two Deputy Directors) have been filled affects the performance 
of the branch. The structure of this branch will be reviewed in line with our participation in SITA. The filling of key posts in this 
branch will be receiving priority attention in the 2001/2 financial year.

PROGRAMME 8; INTERNAL AUDIT

The overall goal of this very crucial programme is to give the public the assurance that the government system of internal control is 
effective, efficient and economic. The priority this year will be to fill all the remaining posts to ensure a functional internal audit 
unit.

The risk assessment tender is already out. This will be done by external companies and will inform the internal audit strategy and risk 
management strategy.

Training of staff will also be a priority for the coming year.

This programme is a very high priority to the provincial government. The budget allocation is thus increasing from R7,880 million in 2000/1 
to R10,305 million in the 2001/2 financial year.

This programme provides a key element in the Provincial Anti-Corruption Strategy whose implementation is being co-ordinated by this office.

The Eastern Cape Provincial Audit Committee (ECPAC) has already been established and will play a key role in carrying out the Internal 
Audit strategy of the government.

PROGRAMME 9: CABINET SECRETARIAT

The Cabinet Secretariat Programme provides administrative and secretarial support to the Executive Council, Cabinet Committees, Top 
Management and Inter-governmental Forum.This ensures efficient and effective functioning of the Executive Council and other support 
structures.

The budget allocation for this programme shows an increase from R679 000 in the 2000/1 financial year to R1,257 million in 2001/2 .High 
priority will be given in the next financial year to more regular outreach programmes by the Executive Council. They will be held on a 
monthly basis.

The existing office space is inadequate and the move to the ECDC premises in Bisho will necessitate additional computers and office 
equipment. The main increases on the budget are in respect of the standard items administration and equipment.

All the posts in this division are currently filled and in the 2001/2 financial year targeted training will be given to staff.

CONCLUSION

-Mr Speaker, the needs are always infinite whilst the resources have a ceiling. I agree with the MEC of Finance and Provincial Expenditure 
when he says that the planning and regulatory departments like the Office of the Premier and his department are not supposed to be bogged 
down by big structures but must be strengthened and be highly efficient to play their co-ordination role.

Our aim to ensure an effective and efficient civil service derives from the pillars of our Provincial Growth and Development Strategy. The 
commitment we made last year in our Budget Indibano to accelerate transformation of the public sector is in line with that pillar. As the 
regulatory co-ordinating department we have to make certain sacrifices in our budget to ensure that the social needs cluster delivers on 
the basic needs of our people. However, we have to be strong enough to be able to monitor and evaluate that delivery.

I thank you

---------------------------------------------------------------------
Home | About the Eastern Cape | Documents
 Economy | Structures | International Relations | Site Map
 Premier's Office | Speeches & Media Releases | Links
 Top of Page

---------------------------------------------------------------------

About the Eastern Cape

Premier's Office

Structures

Documents

Speeches & Media Releases

International Relations

Economy

Links


