Responses to Questions for Oral Reply by the Hon. Premier DD Mabuza

09 April 2013

1.* Hon VVZ Windvoel, ANC, to ask the Honourable Premier

The country has just concluded a highly successful African Cup of Nations where Mpumalanga hosted some of the exciting games including a semi final:

What are the most successful attribute of our hosting the games in the Province?

The attendance of games is an important measure of success for any major soccer tournament. As a Province, we are happy about the excitement that was generated by the hosting of AFCON games in Mpumalanga. This was demonstrated by high attendance numbers on match days. On each match day, an average of 15 600 spectators attended. Matches were also well attended by supporters of the countries that were playing at the stadium.

The logistics and security measures put in place during the hosting of the games resulted in incident-free, exciting and peaceful atmosphere in our stadium during match days.

Certain local businesses located in the center of the City (Crossing Shopping Centre) indicated that their income drastically rose during the tournament and higher sales were recorded than during 2010 FIFA World Cup.

What benefits has the country and Province achieved through hosting the 2013 AFCON games?

The hive of activity in Mbombela during AFCON games undoubtedly benefited local businesses. All the major hotels and guest houses were fully occupied when the semi-final was played.

At this point, the full impact of hosting AFCON games has not been quantified as this requires in-depth research across a range of economic sectors in the city and surrounding areas.

However, there is no doubt that the hosting of AFCON games has contributed significantly in the following areas:

Exposure and positioning of South Africa, and Mpumalanga in particular, as a destination of choice for African tourists.

Tourism has a great potential in the region and requires further investment in infrastructure and services if the province has to attract “a potential market” from the African continent

Promoting regional integration and social cohesion through sport and enhanced intercultural communication and interaction by the peoples of Africa.

What milestone projects can be made for the people of Mpumalanga to have a memorable legacy for hosting such a spectacular tournament?

Among other key projects, the funding for the AFCON 2013 will have the following legacy projects:

The construction of the artificial pitch in Matsulu stadium. Consultants have been appointed for the design and construction of the artificial pitch to the tune of R1.8 million
Upgrading of the Nelsville Sports Complex. This is an upgrade of the sport field, tennis and netball courts as well as the renovation of the club house.
Upgrading of the Tekwane Multipurpose Hall which entails the extension of the parking area and minor repairs of the ablution facilities.
Construction of sidewalks on Nelspruit main roads, R40 and Samora Machel Drive.
Construction of sidewalks in Nelspruit and Kabokweni CBDs
Repair of potholes in Kabokweni CBD,
Etc.

Are there measures to address the issue of the Mbombela Stadium pitch, an issue raised during the course of the 2013 AFCON games?

Yes there are measures to address the issue of the pitch.

The following measures were taken to avoid the recurrence of the challenges that occurred as a result of adverse weather conditions:

The pitch was refurbished and reseeded directly after the tournament and is responding well
Over-seeding the pitch with different combinations of rye grass that is more heat resistant.
Industrial fans are used to ensure natural airflow over the pitch.
A shade clothe is used to create shade during the warm period of the day and to cool the surface temperature down.
A combination of kikuyu and cynodom grass has been considered as it is more adaptable to the local circumstances.

On 23 February 2013, Bidvest Wits played against Kaizer Chiefs and there were no issues with the pitch.

The pitch has a rye grass surface which offers the highest quality playing surface for Football.

2.*Hon AM Benadie, DA, to ask the Honourable Premier

With regards to job creation, can the Premier please indicate?

What are the latest available statistics for the net creation of sustainable jobs versus job losses in the Province?

A. According to the latest Quarterly Labour Force Survey (Quarter 4, 2012) from Statistics South Africa, Mpumalanga Province recorded a net job creation of 36 000. Sectors which recorded net job gains were agriculture and manufacturing, transport , community and social services as well as trade Those sectors that recorded job losses were mining, finance, private households, as well as utilities and construction.

What is the current GDP growth for Mpumalanga and what percentage growth rate does the Premier believe is required to actively and effectively reduce poverty in the province?

A. In 2012, the economic growth rate of Mpumalanga was recorded at 2.5%, down from 3.1% in 2010. As indicated in the State of Province Address, the provincial economy must grow at a rate between 5% and 7% per annum so that the target of seven hundred and nineteen thousand (719 000) new jobs by 2020 is realized. Despite this, it has been forecast to increase to the 2010 figure of 3.1% in 2013, and ultimately increase to 4.5% by 2016.

What plans are in place to ensure we achieve the required growth rate mentioned in (ii) above?

A. The Mpumalanga Economic Growth and Development Path (the MEGDP) is an overarching provincial plan to deal with our triple challenges of unemployment, poverty and inequality. To this end, we have since developed the Programme of Action for the MEGDP which identifies high impact priority projects for implementation. Among others, these projects include the Fresh Produce Market, the Cultural and Creative Hub, the High Altitude Training Centre, the Lowveld Food Technology Centre and the Maths, Science and Technology Academy. These high impact priority projects are as a result of the identified growth sectors in the MEGDP and they are just but a few which will assist us to achieve the required growth rate.

The Provincial Government, in partnership with the private sector and the state-owned agencies, will also continue to provide both financial and non-financial support to SMMEs and cooperatives to make sure that they benefit from CRDP activities and the implementation of the high impact priority projects.

As government, we have concluded partnership agreements with private sector players to collaborate in the areas of:

Human capital development, including skills development and the support for the science, maths and technology advancement programme to increase a pool of scarce and critical skills.
Enterprise development to support SMMEs and cooperatives, as well as
Infrastructure development.

Is the Premier satisfied that government departments and municipalities in the province foster a sufficient sense of vision and proactively launching initiatives to create jobs?

Honourable Member Benadie, the goal of the ANC-led government is to deal with the triple challenges that bedevil South Africa, and Mpumalanga particularly. As indicated earlier, those challenges are inequality, unemployment and poverty. Again, as I alluded to earlier, we have developed the Mpumalanga Economic Growth and Development Path - a blueprint with concrete plans and strategies to tackle these challenges. All departments and municipalities have aligned their plans to advance the implementation of the Growth Path objectives.

Through our trade and investment promotion agency, MEGA, we will engage in inbound and outbound missions in order to bring the much-needed investment opportunities to the Province.

At local government level, our Comprehensive Rural Development Programme is geared towards stimulating local economic growth through targeted investments in agricultural production and strategic socio-economic infrastructure. In the process, the CRDP has contributed significantly to the development of cooperatives as well as the creation of employment opportunities for local people.

Is the Premier satisfied at the current rate of economic development in the province and that adequate practical plans to attract investment to create jobs exist?

A. The response provided above answers this question.

3. *Hon BT Shongwe, ANC, to ask the Honourable Premier

Your Provincial Executive Council since 2009 has undertaken various Executive Outreach Programmes in an effort to reach out to communities.

Can the Premier highlight some of the experiences the government has acquired through the Executive Outreach Programme?

Through our Outreach Programme, we have acquired valuable experiences and lessons that stand us in good stead to help us shape our programmes as we respond to the challenges facing our communities. Some of the key learning points include:

The need to strengthen communication between government and the people to eliminate the perceived ‘social distance’ and empower communities to understand government plans and programmes.
Public representatives should constantly visit communities to ensure that they address challenges that communities face from time to time.
Despite remarkable progress made to date, the provision of housing alongside basic services such as water, sanitation and electricity remains one of the most critical areas in which government must improve its performance
Government’s delivery of infrastructure must improve drastically to respond to backlogs in under-developed areas of our Province
Government must continue to implement programmes that focus on stimulating local economies to address high levels of unemployment, particularly high youth unemployment
We have learned that we should continue to pay more attention to the performance of our health facilities to improve the quality of health care.
More importantly, we need to focus on turning around underperforming schools to ensure that learners receive the highest quality of education possible.

How many communities have been visited in Mpumalanga through the Outreach Programmes?

A. All the municipalities have been visited

What legacy projects and provincial successes of service delivery in Mpumalanga which have been achieved as a result of the Executive Outreach Programmes?

Among many successes, the Outreach Programme has contributed in the following areas:
Poor and underdeveloped municipalities are benefitting from the implementation of the Comprehensive Rural Development Programme
Health facilities, roads, libraries and schools have been built in communities to respond to the issues raised during the Outreach visits.
We are currently implementing projects to improve our capacity to deliver water to all our communities. Our bulk water infrastructure delivery programme is currently being spearheaded by MEGA in partnership with municipalities where urgent interventions are required to address water challenges.
More houses have been delivered in response to the housing needs raised by communities during Outreach visits.
We have witnessed the birth of the Premier’s Special Housing Project, an initiative between the private sector and government. Hundred and Fourty-seven (147) houses have been constructed through this project thus far.
Most importantly, government is closer to the people. Despite challenges, our leaders are doing their best to interact with communities in order to understand and respond to their needs.

4. *Hon KAP Madonsela, COPE to ask the Honourable Premier

According to the annual financial statement for 2011/12 financial year, the Auditor-General has identified MTPA as a going concern. The entity has incurred a net loss of R15 093 655 and the liabilities exceed the total assets by R59 620 398. Can the Premier clarify the following:

What are the reasons for such state of affairs in MTPA?

A. Honourable Members, MTPA has over the last few years been plagued by leadership and governance challenges that impeded the institution from carrying out its legislated mandate. As government, we have intervened from time to time to ensure that this institution gets back on track.

We have worked consistently to turn MTPA around. Among other interventions

We have stabilized the leadership level so that it deals with historical challenges and restores the institution to a sound financial footing
We are focusing on improving internal efficiencies to save costs and ensure that reserves generate revenue to sustain the operations on a long term basis
We are addressing challenges of corruption where this phenomenon rears its ugly head within the institution.

We are confident that the current leadership will rise to the occasion and assist in turning this institution around to operational efficiency and sustainability.

How much pay-out was given to the CEO who has caused this state of affairs and why was he given such an amount?

A. The settlement with the former CEO of the MTPA, Mr Charles Ndabeni, was reached amicably. Within the framework of the law, the Board evaluated different options available to terminate the services of Mr Ndabeni after realizing that his continued employment was untenable.

One of the major considerations had to do with the legal implications for the termination of the contract, including the financial implications and impact of a protracted legal process on the operations of MTPA.

At the end, the Board decided that the termination of the contract would be done by mutual agreement between the parties. This would entail payment of certain benefits to the employee such as outstanding leave and salary for an agreed period of the remaining term of his contract. Mr Ndabeni was therefore paid a twelve (12) months’ salary of R1 565 827.76, as agreed by the parties, instead of 24 months which were remaining on his contract.

An investigation was conducted by DEDET on the financial crisis at MTPA and which company did such an investigation and at what cost?

A. The then MEC for Economic Development, Environment and Tourism appointed Diale Maphothoma and Associates at a cost of R284 938.44 to:

Determine the causes of the financial crisis at the MTPA;
Make an assessment of the MTPA’s Budget Rescue Plan 2011/2012; and
Establish whether proper internal financial controls are in place.

What interventions is the government planning to implement and by when?

A. I have interacted with the MTPA in my capacity as the Premier of the Province as part of our One-on-One interactions. The MTPA presented its Status Quo Report and a Turnaround Strategy proposal. We agree that the proposal will go a long way in assisting the Agency and the Provincial Administration to deal with the pertinent issues affecting the MTPA. Among other things, MTPA will be supported in the following areas

deal with funding and long-term sustainability issues,
address governance and risk management issues,
investment in the recapitalization of parks to enhance their profitability and self-sufficiency,
effective revenue management and utilization,

As the Executive Council, we resolved on the recommendations of the Budget and Finance Committee, to assist the MTPA through the 2012 Budget Adjustment Process with an interim bailout to address some of their critical budget pressures. Special emphasis was made on addressing all litigation matters, some of the outstanding accruals, and funding was also made available to the MTPA to protect some of the smaller but highly valuable conservation areas.

The MTPA remains critical in driving and implementing the rural development agenda of the province, and as alluded to in the State of the Province Address, the Growth Path has identified the tourism sector as one of the key drivers for economic growth and job creation in the Province.

5. *Hon BA Majuba, ANC, to ask the Honourable Premier

This country under the steering leadership of the ANC is just in a brink of celebrating 20 years of our Constitutional Democracy:

What are the major successes of the ANC led Provincial Government to the people of Mpumalanga since 1994?

A. Honourable Majuba and Members, you will appreciate that this question is broad and requires collation of data spanning 20 years. In the context of this session, one can only cover broad areas of work over this period. Among many areas of success, the ANC-led provincial government has contributed in the following areas.

Amalgamation and integration of former homeland administrations to form the new Provincial Administration as we know it today, including the integration of education and health systems
Through the Reconstruction and Development Programme, government began with the process to reach out to previously disadvantaged communities to deliver houses and basic services to all the people of the Province.
Over the years, this government has delivered houses to hundreds of thousands of citizens. If you drive around every corner of the Province, you realize the number of lives we have touched over this short period of time.
Despite challenges, more people have access to water, sanitation and electricity;
More poor children have access to ‘no fee’ schools and school nutrition programmes;
We have built roads, clinics and schools in rural; communities to improve the lives in our rural communities
We have ensured that through our programmes we contribute towards economic growth, and job creation;
As we open up the economy to be inclusive, we have, over the years made significant progress in the following areas:

building the economy in rural areas, developing industries where the potential exists;
using our programmes such as the EPWP and the CRDP, we have created more jobs through agricultural development and other economic activities, including training and skills development;
strengthening our institutions to support SMMEs and cooperatives to promote economic growth.

What major lessons has the ANC learnt in its leadership of the Province?

The quality of leadership at any given time determines the quality of development and future progress. As the ANC-led government, we have taken note of few attributes that are indispensable in the leadership of the Province to future growth and prosperity. These are:
Political stability as a necessary condition for development;
Collective leadership and unity of purpose in tackling development challenges of the Province;
Commitment to service by the political leadership, instead of being consumed by personal interests;
Leadership commitment to root out fraud and corruption at all levels of government and society in general.

What are areas of interventions the ANC led government intends making to further improving the lives of the people of Mpumalanga?

In spite of all positives strides that the ANC-led government has made over the few years, there are areas that require special attention.
The triple challenges of unemployment, poverty and inequality must be addressed through deliberate policy interventions to increase investments that will lead to inclusive economic growth and job creation.
We will continue to focus on programmes that bring about much needed development in rural areas through our Comprehensive Rural Development Programme.
We need to improve our education system to deliver quality outcomes that contribute to creating a sustainable pool of skills to drive growth and development. We want to focus on turning around underperforming schools.
Through the introduction of the National Health Insurance, more attention will be paid to ensuring that our health facilities meet the minimum levels of performance in line with national norms and standards.
The delivery of basic services in the context of integrated and sustainable human settlements will continue to be one of the main priority areas of work.
More importantly, we need a safe and secure Mpumalanga free from crime as well as fraud and corruption. This is a necessary condition for the enjoyment of democratic freedoms and liberties that our forebears sacrificed their lives.

6. *Hon Masango, DA, to ask the Honourable Premier

With regard to the Hon Premier visiting all Provincial hospitals in Mpumalanga. Could the Premier please indicate the following?

During your visits to the provincial hospitals, can you describe what the highlight of your visits was and what was the lowest point of your visit?

The most memorable part of the visit has been the realization that the doctors and nursing staff are always prepared to go beyond the call of duty to provide health services to patients despite critical challenges of staff shortages as well as inadequate equipment to perform their duties optimally.

The lowest point of my visit was the realization that the deterioration and poor maintenance of our infrastructure is compromising quality health care and immediate action is required to address appalling infrastructure conditions. Some of our hospitals are in a complete state of collapse with dysfunctional boilers, leaking roofs, and insufficient wards to perform clinical duties.

Now that you have seen the state of the hospitals in this province, what are you planning in order to improve these facilities?

In response to the visit by the Premier, the Department of Health has developed a Hospital Improvement Plan to address issues raised in the Hospital Performance Assessment Report. Among other key issues, this Plan addresses
Human resources, including the appointment of CEOs and health professionals in critical areas of need,
The establishment of maintenance teams to ensure regular maintenance of our health facilities,
Repair and renovations, and
Provision of equipment to improve the quality of health care.

You requested the hospitals’ CEOs to provide your office with a critical staff shortages list: can you please explain what your office’s intention with these lists is?

The list will be used to prioritise and fill the critical identified posts in the 2013/14 financial year.

Based on your visits can you list the three worst and three best hospitals in Mpumalanga and what criteria were used to determine this?

The assessment was based on the National Core Standards for Health Establishments in South Africa, a tool that clarifies what is expected, both in terms of systems to be put in place as well as the outputs that should be delivered. There was no intention to rank the hospitals. Therefore, this tool was not applied to provide scientific ranking across all key performance areas.

Our broad observation was that there are hospitals that are experiencing fewer challenges. Some of these hospitals include Carolina, Evander, and Barberton hospitals. On the other hand, we have hospitals that require immediate interventions in order to bring them to the optimal level of functionality. These include hospitals such as Tintswalo, Shongwe and Embhuleni hospitals.

Now that the Hon Clifford Mkasi has been removed as MEC of Health, will you continue with your stringent oversight of Health Department and the state of our province’s hospitals does the Premier believe that it is mission accomplished?

We will continue to perform our monitoring and oversight function across all the Departments and municipalities, including the Department of Health.

7. * Hon NC Mamabolo, ANC to ask the honourable Premier

In the 2013 State of the Nation Address President Zuma made a commitment that there will be a shift from road to rail transport in Mpumalanga in order to protect the Provincial Roads:

What social and economic benefit will the Province gain from the commitment as made by the President?

Socio-economic impact:
Safety on roads will be enhanced by movement of commodities on rail.
Larger commodities will be delivered and this will translate into positive impact on economies of scale.
The running cost of doing business will be reduced due to better condition of roads.
Roads in good conditions will encourage tourism in the Province
Roads will have a longer life cycle, thereby reducing cost on maintenance. Savings made will be re-directed to other priorities.

Where will the Majuba Rail coal line run forms?

Ermelo to Majuba power station.

What prospective job opportunities are likely to be created in the endeavor?

Jobs will be created during the construction process and local people will benefit. It is expected that other economic spin-off will emerge as result of the rail construction.

8. *Hon RC Mahlobogoane, ANC, to ask the Honourable Premier

In your 2009 inaugural State of the Province Address, you did allude to the outcry small business people are making and that their businesses even face closure due to government none payment of invoices for service rendered within 30 days period:

How far is the Provincial Government in complying with the 30 days payment for services rendered?

The quarterly assessment conducted by the Provincial Treasury for the period 1 July to 30 September 2012 reveals that, as the Provincial Government, we are not doing well in this regard as expected in terms of applicable legislation which governs procurement.

This is supported by the fact that, the number of invoices which were paid after 30 days, increased from 1 158 (first quarter) to 1 919 (for 2nd quarter), which gives a difference of 761.

Moreover, the number of invoices which remained unpaid after 30 days, increased from 506 (first quarter) to 2 147 (second quarter) which gives a difference of 1 641.

The main contributing factor to non-compliance is the decentralization of the Supply Chain Management function within departments. To remedy the situation, the Provincial Treasury will issue an Instruction Note to all departments for the centralization of the SCM function. The instruction note will take effect from 1 April 2013. In addition, the Provincial Treasury will enforce monthly reporting in this regard.

Are there consequences for Departmental officials who fail to comply with this directive?
Our assessment has shown that the non-compliance in this regard cannot be attributed to individual officials in departments. There are a number of factors on the part of departments which contribute to non-compliance, and these are indicated on the next question.

What are the major obstacles for departments who continue to fail to adhere to this 30 days payment directive?

Our assessment has revealed that the major obstacles are the following:
Poor planning and lack of internal controls on the part of departments;
Late submission of invoices and other related documentation by suppliers: and
Lack of communication from suppliers regarding changes on banking details and other important information.

9. *Hon KAP Madonsela, COPE, to ask the Honourable Premier

Mpumalanga Regional Training Trust (MRTT) is a training institution funded by government. Can the Premier clarify the following:

Is MRTT a parastatal/public entity or a non-profit organization (NGO)?

The Mpumalanga Regional Training Trust is listed as a Provincial Public Entity in terms of Schedule 3C of the Public Finance Management Act (PFMA), Act No. 1 of 1999 as updated through the Government Gazette 33059 dated 1 April 2010. Through its Board of Directors as duly constituted Accounting Authority, it reports directly to the MEC of the Department of Education in the Mpumalanga Provincial Government.

The Mpumalanga Regional Training Trust is registered under Section 21 of the Companies Act, (Act no. 71 of 2008), as a NOT FOR PROFIT COMPANY (NPC).

Are there training courses accredited by any Seta? If so, which of the Setas?

Yes, MRTT training courses are accredited with the following SETAs:
Construction Education and Training Authority (CETA)
Manufacturing Engineering and Related Services Education Training Authority (MerSETA)
Energy and Water Sector Education and Training Authority (EWSETA)
Culture Art Tourism Hospitality and Sport Sector Education and Training Authority (CATHSSETA)

The learners who underwent training in the institution for the past two years in the construction programme do not have certificates indicating a qualification endorsed by the Seta concerned (Construction), only a certificate of attendance was issued to the learners, is the Premier aware of this? If so, what interventions have been made on behalf of learners who paid exorbitant fees for training? If not, why is the Premier not aware?

MRTT issued attendance certificate to learners as recognition of completion of Institutional Training for the Skills Programmes. The learners are still required to further undergo workplace experiential learning with host employers before any certificate can be issued by the SETA. The certificates issued by MRTT vary from a period of one (1) to four (4) months with specific completed training outcomes stipulated on the reverse side.

SETA Certificates or Statements of Results can only be issued when the learner has completed both Institutional and workplace experiential learning. Workplace experiential learning requires placement of these learners with host employers, and this is where MRTT experiencing challenges.

To address the above challenges, MRTT has implemented interventions to improve the placement of learners. These include:

The establishment of a placement Division for assisting in securing host employers who will provide workplace experiential learning for the learners affected. The intervention will still continue on behalf of all learners.

Approaching SETAs to assist in finding workplace experiential learning for these learners.

Given the above response, will I be wrong to refer to MRTT as a fly-by night institution? Give reasons for your response.

YES, it will be wrong to refer to MRTT as a fly-by night institution because:

MRTT is duly registered institution in terms of Companies Act, 2008 (Act no. 71 of 2008).
MRTT has primarily accreditation and programme approval with SETAs as mentioned above.
MRTT is duly registered as a Trade Test Centre with Construction Education and Training Authority.
MRTT is an institution listed as Schedule 3C of the Public Finance Management Act (PFMA), 1999 (Act no. 1 of 1999) and is annually audited by the Auditor General (AG).

10. *Hon JL Mahlangu, ANC, to ask the Honourable Premier

Regarding the Infrastructure Road Show you have undertaken in recent months to assess state of infrastructure projects in Mpumalanga:

What have been the major findings of the Road Show you have undertaken?

Our infrastructure performance assessment report contains very comprehensive findings on specific projects as well as overall systemic challenges that impede the effective implementation of infrastructure projects. Among other key findings, we have begun to address the following:

Weak project management systems and processes resulting in poor contract management.
Poor planning processes, resulting in delays of infrastructure delivery,
Poor monitoring of infrastructure projects during implementation,
Late payment of contractors due to inefficient payment processes within the entire system,
Poor maintenance, vandalism, and theft at construction sites,
Lack of an integrated approach to human settlement planning,
Vandalisation of property, and Illegal occupation of completed houses,
General poor performance of contractors resulting in delays in the construction of allocated houses.

Do we have some challenges in the Province with regard to infrastructure projects and how does your government intend dealing with such challenges?

Our findings above indicate the nature of challenges that we are responding to as part of our effort to accelerate infrastructure delivery. Among other key measures, we have prioritized the following:

Strengthening project management systems through the acquisition and deployment of relevant expertise to plan and monitor the implementation of infrastructure projects,
Putting in place effective contract management systems,
Ensuring that processes of land acquisition, and all regulatory planning requirements are in place before implementation of any project to avoid undue delays,
Sufficient budget must be provided for maintenance of existing infrastructure ,
Ensuring timely payment to service providers,
Considering the process of black listing non-performing service providers,
More importantly, proper human settlement planning and community engagement are required to settle people on approved sites.

What progress is there at a Provincial level to align the Premier’s Infrastructure Coordinating Council with the Presidential Infrastructure Coordinating Council?

As a Province, we are represented in national forums that are tasked with the implementation of Strategic Infrastructure Projects, including projects that are implemented in Mpumalanga. At a project level, there is an alignment of key implementation activities such as the establishment of the university and rail construction projects. However, at an institutional level, there is still more work to be done to ensure that there is greater engagement and interaction on prioritization and implementation of key infrastructure projects in the Province.

Go back |

Print this page | Return to top