
=====================================================================
Policy and Budget speech 200/01
=====================================================================

Speeches and Media Releases
 Road and Public Works

[         w

EASTERN CAPE  PROVINCIAL GOVERNMENT

DEPARTMENT OF PUBLIC WORKS

POLICY AND BUDGET SPEECH 2000 / 01

14 MARCH 2000



"Men make their own history, but they do not make it just as they please; they do not make it under circumstances chosen by themselves, but 
under circumstances directly encountered, given and transmitted from the past&#133;." Karl Marx

Honourable Speaker and the Premier
 Distinguished Members of our Provincial Legislature
 Invited guests
 Ladies and Gentlemen:

Our second democratically elected Government has set itself the fundamental task of accelerating service delivery there-by improving the 
quality of life for all its citizens, the rural poor and the marginalised, in particular. The budget I am presenting here today is another 
milestone in this broader struggle to realise that fundamental objective.

In the face of the challenges out there, and for our Department in particular, this indeed is a daunting task, a task for which we are 
prepared.

As Marx points out in the extract above, we are struggling to improve the quality of life for all people in this Province, but in 
conditions not of our own choosing. We do so in conditions that are encountered, given and indeed (conditions) transmitted from our past.

Mr. Honourable Speaker, I can state almost with certainty and utter confidence that, given a chance to make a choice, everyone of us here 
in this House would not have wished for a Province that is characterised by:

* Inherited administrations some of which were a hive of underdevelopment, unemployment and poverty;

* Administrations that had roads surfaced on paper when in actual fact that never was; and, further compounding the matter;

* A Province that has recently been hit by ravaging storms that swept away the existing roads and bridges in a way rubbing salt to injury.
It thus is not by some mysterious conditions, nor is it by any historical accident that we find ourselves with such a glaringly huge 
infrastructure backlog in the Province. I must also be quick to add, Mr. Speaker, that members should note also the fact that these 
conditions become extremely innumerable in those areas that were formerly Black areas as they were, by policy and practices of the past 
apartheid and homeland regimes, deliberately neglected and impoverished to the last possible level.

These are but a few of the many challenges we have got to contend with as we have no other choices. The fate of history has assigned us 
these responsibilities and indeed we are unflinching in our resolve to confront them for the betterment of our Province and its people.

Be that as it may, Mr. Speaker, we cannot then leave our fate to history. Though we do not have to forget where we come from, we however 
have to also be mindful of where we want to be in the future and so accordingly shape our plans.

As I have indicated above, Mr Speaker, the priorities that we have set ourselves as a department shall denote our preparedness to face up 
to the challenges as we have identified them.

POLICY PRIORITIES

Our department has set itself particular policy priorities that are as a result of our commitment to improve and accelerate service 
delivery in our Province. The Department of Public Works will be embarking upon a major revamping of its structural arrangements and 
thereby improve in its systems and controls to keep pace with the demands and challenges posed upon us by the present material conditions 
as they prevail.

By way of elaboration, Mr Speaker, one would also like to enumerate some of such policy priorities that we have set ourselves to implement 
beginning the next financial year:

* We have committed ourselves to establish a corporate culture in dealing with our financial controls and management systems in a bid to 
ensure that we conform to the prescripts including the Public Finance Management Act, No1 of 1999. We have resolved to follow strict 
project management principles;

* We have committed ourselves to launch an all round offensive against corruption and all its manifestations within the department and 
further eliminate any traces of mal-administration;

* The establishment of Road Network Prioritisation Strategy that should be informed by and feed into the Provincial Growth and Development 
Strategy, Rural Development Strategy as well as the Provincial Spatial Planning Process;

* Fast tracking the disposal of assets redundant to State needs;

* Maximising the effectiveness and benefits of the memorandum of understanding entered into between the Provincial Government and the 
Development Bank of South Africa;

* Reviving and setting in motion the departmental transformation process in a manner that gives meaning and effect to the principles of 
Batho Pele;

* Ensuring the effective transformation of the construction industry through the implementation of the Affirmative Procurement Policies.

The budget I will thus be presenting here Mr Speaker is derived from the policy priorities that I have just enunciated.

PROGRAMME BUDGETS

Allow me, Mr. Speaker, to now proceed with the budget allocations and plans for the next financial year.

    2.1 ADMINISTRATION

Mr. Speaker, as it is well known to everyone of us here in this House, administration is an important component of any organisation as it 
provides the necessary support that is needed for programmes advancement of their set objectives. This function relates to the 
organisation of our workforce, provision of the necessary equipment and material as well as the management of the very budget allocated to 
the various programmes. This function in our department is thus located under Programme 1.

The total budget allocation for this for the next financial is R36,781m as against the 1999/2000 financial year budget which was R163 071m. 
The variation in this allocation has been due mainly to the restructuring that has taken place within this component:

* The creation of the seventh programme, i.e. Property Management, that I will speak to in detail here-under;

* The transfer of the monitoring and related activities from this programme to programme five;

An amount of R1 793 335.00 drawn from all the programmes will be set aside for the skills development and training of our staff. Our plan 
in this regard will mainly be for retraining and reskilling of some of our supernumeraries as indicated above to fill out some critical 
posts at supervisory levels.

Furthermore, my department will be indulging upon the cleaning up of our personnel data base of all those people that are 65 years of age 
and above who still remain within our system, while we will also be developing proper plans for the future retirements of all those people 
that will be turning 65 years and above.

We will also be cleaning our system of the many people that have retired, for one reason or the other, but have not been removed from our 
system. Coupled with this is also the payment of the huge personnel debt related to such retirements.

We will also be engaging in some major recruitment processes in the coming financial year to fill in most of the critical posts that have 
been left vacant for such a long time that most damage in the department can be attributed to their vacancy. These posts include, inter 
alia, Director-Finance and other finance divisional staff.

The Department will also be developing a proper plan of action to commence implementation by the beginning of the next financial year on 
the absorption into our mainstream of the external candidates that were our bursars. This is informed by the Integrated Implementation 
Process that identified a lot of gaps regarding our technical staff as well as also our present plans relating to infrastructure 
development in the Province. As we fill out the critical posts of engineers, architects and quantity surveyors, we will also be in a 
position to save on unacceptably huge consultancy costs within our programmes.

    2.2 BUILDINGS

Mr Speaker, we are constitutionally mandated with a responsibility of constructing and maintaining government assets in the Province, and 
this responsibility we have located under Programme 2. Implied in this, Mr. Speaker is the responsibility to monitor and ensure the 
adherence to the national norms and standards regarding infrastructure development throughout the province.

An amount of R37,891m has been allocated to this programme as against the 1999/2000 budget allocation of R80,279m. This without doubt 
Honourable Speaker and members, is a drastic reduction of well over 50%. Given the huge maintenance backlogs on all the state properties 
that is increasing on a daily basis, it does appear to me Mr Speaker that we shall be experiencing a lot of problems in this programme this 
coming financial year.

We however appreciate the additional funding allocation of R9m that has been provided in the ring fenced additional allocation. I would 
like to assure the House, Mr. Speaker, that this additional allocation will definitely go a long way in alleviating the demands that will 
have to be satisfied within our limited means.

This programme has thus been divided into two main subdivisions as follows:

    2.3 New Works

New Works will be operating within a budget of R11.1m for the 2000/01 financial year.

New Works will be engaged mainly with the completion of the uncompleted projects stemming from the previous financial year/s and, I am 
confident, also that most of them will be completed in the next financial year.

This subdivision, Mr. Speaker, will also be pioneering a process of establishing a Provincial Infrastructure Development Agenda. Towards 
this end, a Provincial Infrastructure Development Summit has been organised for the 17 of March 2000 in which all the affected Departments 
will be participating in the brainstorming and subsequently shaping up of the Provincial agenda as indicated above.

This sub- programme Mr Speaker shall also be responsible for the implementation of all capital projects for other provincial departments 
like Health, Education etc. The forthcoming summit is expected to set a platform for the proper implementation and coordination of these 
projects avoiding the numerous pitfalls that have been encountered this far.

    2.4 Building Maintenance

This subdivision has been allocated an amount of R26.7m.

The following projects have been identified for implementation in the next financial year:

Major repairs and renovations will be undertaken to the Eastern Cape Legislative Assembly Complex and they are estimated at a cost of 
approximately R0.9m.

There will also be some alterations that will be done to the Safety and Security complex as well as the Welfares Dukumbana offices at a 
cost of approximately R0.3m and R0.1m respectively.

An amount of approximately R3m each will be set aside for the utilisation by the five regions that will total to R15m. This is money that 
will be used mainly for general maintenance and particular alterations to the existing structures in instances where more space is needed. 
This amount will also assist regions in the implementation and management of projects that they implement.

There will also be general maintenance that will be carried out for the Bisho-King Williams Town Government Buildings. Most of the 
remaining maintenance budget will be expended on emergency and ad hoc maintenance that, from time to time will be necessary, including also 
addressing the backlog that presently exists in terms of maintenance work that was supposed to have been done in the previous years.

    2.5 ROADS

This programme has been allocated a total amount of R120,110m. Mr Speaker, from the onset again I must express our gratitude and 
appreciation to the Budget Committee for the additional funding of R103m that has been provided and the ring fenced. This budget Mr Speaker 
is welcome relief that has come at an appropriate time in the conditions we find ourselves. At this stage Mr Speaker one can only plead for 
the sustenance of this intervention on an increasing basis for the next financial years. The rationale for this assertion is demonstrated 
below.

A conservative estimate for the maintenance of the Provincial Roads Network indicates an annual figure of R1bn (one billion rands). This is 
an estimate relating only to the normal maintenance requirements had our roads been kept in a normal situation.

However, the recent storms have badly damaged our Provincial Infrastructure, particularly with regards to roads. Many roads and bridges 
have been swept away leaving us with yet another situation in which schools which were previously accessible are no longer accessible, 
clinics previously accessible are no longer accessible, etc. A further conservative estimate of the flood damage to our Provincial Roads 
Network since December 1999 to date currently rests at approximately R200m (two hundred million rands). This, Mr. Speaker, is the amount 
that we presently need just to attend to the damage caused by the floods without even touching on what needed to be done before such storms 
and floods could deal us yet another heavy blow as reflected here.

In spite of such severe challenges and constraints, Mr. Speaker, we have set ourselves some priorities in this programme that are contained 
in the ensuing paragraphs.

We have set ourselves the task of ensuring that our construction units are utilised to their full capacity starting from the coming 
financial year. Towards this end therefore, we would be setting aside an amount of R45m of the budget to be used by the regions for 
specifically identified projects. The work will be managed and measured strictly in accordance with specific performance indicators as set 
out in the business plan for each region in this regard. Project priorities will be identified together with the District Councils and 
Communities.

We will also be surfacing the Idutywa-Willowvale road that, I am confident, will contribute a lot to Governments Spatial Development 
Initiative programme and thereby assist in the achievement of our set Provincial objectives to give a boost in the economy of the area. As 
a project that has always been in the pipeline for many years, it now pleases me to finally take it out of the pipe for implementation. A 
lot of groundwork has already been done in this regard and all going well a contractor could be on site as early as the beginning of May 
this year.

A further R4,5m has been set aside to deal with extensive repairs to the R61 between Umtata and Port St. Johns which has been so severely 
potholed for many years that it is no longer attractive at all not only to tourists, but also to investors that would be willing to invest 
in the Port St. Johns area.

Another R7m will also be set aside to do some major patching and re-sealing to the tar road (R61) between Engcobo and Umtata to extend the 
life of the existing road which is presently on the brink of collapse.

Design work for the upgrading from gravel to tar, in the medium term, of the Cala-Elliot, MarClear-Mt. Fletcher and Cala-Lady Frere roads 
will proceed to the next phase so that once funding is obtained for the construction of these projects my Department can proceed with 
speed.

The three construction units will also be proceeding in full speed with work on the Graaff Reinet-Middleburg road, the Bambisane Hospital 
access and the R72 between Sandile and Lovers Twist. Some additional funding will also be made available to them from the ring fenced 
funding to ensure that this year for the first time in their history they can operate for the full year. My department will also be 
considering, the improvement of productivity of these through possible public-private partnerships.

The mechanical section will again not be able to supply a full service as no funds are available for replacement of the ageing plant. It 
will however focus its attention on completing the registration and licensing of the fleet which has had to be slowed up due to financial 
constraints. In conjunction with the plant users items requiring major overhauls will have to be prioritised thus ensuring that the money 
allocated to repairs will be effectively used.

An amount of R15m from the National Roads Agency allocation for Poverty Alleviation Fund will be set aside for spending solely on the 
construction as well as maintenance of bridges throughout the Province.

The remaining R35m of the National Roads Agency allocation will be spent on various projects in Road Rehabilitation throughout the Province 
with a particular focus on rural gravel roads.

My Department is also implementing a R47m worth of projects for the National Department of Public Works Poverty Alleviation Funding. This 
work is concentrated on rural roads in the Wild Coast SDI area. A key project, worth noting, in this program is the surfacing of the first 
6km and re-gravelling of the rest 21km of the Lusikisiki-Mbotyi road at a cost of approximately R14m.

Mr. Speaker, we have also set aside an amount of R22m for allocation to the district councils for the agency functions that they will 
perform for us. I must hasten to say that this area has had numerous problems in the recent past. We have resolved to have a fresh look at 
this matter as there had never been developed a proper strategy underpinning this relationship.

Lastly, Mr. Speaker, I would like to mention that road infrastructure is a long- term investment requiring long-term planning and 
maintenance strategies. This financial year we shall undertake a comprehensive road network prioritisation strategy that is to be 
complemented through the MTERF budgeting framework. This in our view is the best of responding to the network needs as well as those of the 
provincial human development needs.

    2.6 NATIONAL PUBLIC WORKS PROGRAMME

Mr. Speaker, the department is also responsible for the monitoring of the implementation of the National Community Based Public Works 
Programmes on behalf of the National Department of Public Works. This function has thus been located in the department under Programme 4.

The budget allocation for this programme for the next financial year is R5, 529m as against the 1999/2000 allocation of R7, 597m. The 
restructuring that is presently taking place within the department has also affected this programme a bit and that to a lesser extent is 
the cause for the variance. However, it is worth noting that this reduction in the budget for this programme will constrain its 
effectiveness in the implementation of its work.

An amount of R2.1m has been budgeted for the facilitation and monitoring of implementation of the Wild Coast Spatial Development 
Initiatives infrastructure projects. These include in the main, the Port St. Johns Town Entrance, Coffee Bay/Hole in the Wall link road, 
Coffee Bay/Hole in the Wall ablution facilities, Dwesa/Cwebe link road and the bulk water supply project at Coffee Bay implemented by the 
Department of Water Affairs and Forestry.

This programme will also be going full speed with the Clean and Green project which in the main is a campaign focussing on the three 
elements viz, public awareness, cleaning and greening activities. Mt. Frere and Alice have been selected to be the pilot areas in the 
Province.

An amount of R0.4m has been budgeted for the transformation of the construction industry. This process will be implemented in phases. In 
the first phase of this process, the Emerging Contractor Development Programme will be launched by June 2000, followed by regional 
launches. As indicated above, the other elements of this process will be set in motion within the broader restructuring process under way 
within this component.

    2.7 RISK MANAGEMENT

The primary responsibility of providing security services to all public buildings occupied by provincial departments both at provincial and 
at regional levels rests with this department and is located under Programme 5. The budget allocation for this programme is R11, 090m.

This department is responsible for the security of state assets, in order to ensure greater efficiency and effectiveness in the rendering 
of security services, private security firms are engaged on short term contracts as the process of dealing with these institutions on a 
longer term basis is being finalised. The total cost of running these activities thus rests at R4,2m including escalation costs on 
contracts. The budgeted amount of R2,376m for these contracts for the next financial year therefore calls upon a radical prioritisation 
process with regard to the buildings that can be secured in this regard.

An electronic access control system was installed in all main entrances to government buildings in Bisho. Benefits from this system had not 
been properly exploited due to a variety of reasons for which we are reviewing. Although the budgeted amount of R0.36m takes care of the 
maintenance and upgrading of this system, it is worth noting that the regional offices and the forthcoming district offices will also have 
to be provided with this system in order to secure these offices, but cannot be provided for in the present budget allocation.

Security awareness campaigns will be undertaken as from April 2000 throughout the Provincial Administration so as to sensitise all staff 
members on general security of personal, office, information and documents.

During the next financial year, the programme will continue with the awareness campaign on the implementation of the legal requirements of 
the Occupational Health and Safety Act.

Monitoring of the many departmental stores spread throughout the Province will also be needed to avoid unnecessary losses.

    2.8  STAFF ADDITIONAL TO THE ESTABLISHMENT

The department has huge number of staff members additional to the establishment that are co-ordinated under this Programme 6.

The budget allocation for this programme is R231,258m as compared to the 1999/2000 budget allocation of R58, 661m which is quite a 
considerably unprecedented percentage increase in the department. The percentage variance in this programme is attributable to the ongoing 
restructuring taking place within the department that should be completed this financial year.

The department has developed a comprehensive plan of action to deal with the staff additional to the establishment. This plan involves 
retraining with the purpose of redirecting some to other functions, accelerating absorption and, including encouraging the option of 
voluntary severance packages

    2.9  PROPERTY MANAGEMENT

It thus goes without saying, Mr. Speaker, that by virtue of the Departments responsibilities to provide and maintain buildings 
infrastructure, there needs to be a vigilant and efficient property management functionary within the Department. This function is thus 
located under Programme 7which has been allocated a budget of R96, 008m.

It should also be stated that the department will, in the coming financial year be engaged in a number of exploratory processes to 
establish the best possible property management practices that will instil a culture of caring for services provided by the users 
themselves.

In the next financial year, this programme will expedite the completion of the asset and property audit process and publish an accurate 
properly managed asset register for all the government-owned properties in the Province. Coupled with this will be the processing of title 
deeds for all our properties including valuation of the same.

Furthermore, we will also be proceeding with our exploration of the best possible methods, means and ways of utilising the state-owned 
properties in the most cost-effective manner. Towards this end we will be looking into some public-private partnerships that will be able 
to restore State assets to their condition whilst at the same time ensuring that the State benefit in a major way in the process.

The department has already started with the initial process of the integration of Bisho-King Williams Town. This process will be one of 
our major projects for the coming financial year.

In the coming financial year, Mr. Speaker, my department will be disposing of most of the State-Owned redundant properties so as to rid 
ourselves of the unnecessary maintenance burden that we have to carry year by year without any value earned at the end of the day.

CONCLUSION

Mr. Speaker, the fate of history has placed on us the responsibility of contending with the challenges as outlined. In our conduct Mr 
Speaker, we shall exercise zero tolerance on mal-administration. The culture of impunity that seems so pervasive in the main arteries of 
the department leading downwards to the lower echelons shall be steadfastly stamped out in the coming financial year. The Premier of this 
Province has implored all of us to ensure clean and corrupt free administration and for that we cannot fail.

As I speak here today, our head of department is out on suspension. This Im sure you are aware that it presents us with a further 
difficult situation in terms of the smooth implementation and coordination of our programs. It is in this light that we want a speedy 
resolution of this matter.

Mr Speaker, the challenges out there are certainly enormous but they are not insurmountable. We are determined to succeed.

May I at this stage record my appreciation for the assistance I received from the Premier and my colleagues in the executive council. At 
times when everything looked down and out, they always provided me with inspiration and for that Im grateful.

My gratitude also goes to the members of the standing committee for Public Works and indeed the rest of the staff of our department.

I thank you.



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

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

About the Eastern Cape

Premier's Office

Structures

Documents

Speeches & Media Releases

International Relations

Economy




