SPEECH
GAUTENG DEPARTMENT OF INFRASTRUCTURE
DEVELOPMENT 2016/17 BUDGET VOTE SPEECH:
TABLED BY MEC JACOB MAMABOLO AT THE
GAUTENG LEGISLATURE ON 27 MAY 2016
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Honourable Speaker and Deputy Speaker
Honourable Premier and Members of the Executive
Council
Chief Whip of the Majority Party
Honourable Members of the Gauteng Legislature
MMCs and Councillors
Senior officials of the Department Led by HOD
Distinguished Guests
The People of Gauteng
Honourable Members, kindly allow me to dedicate
this Budget Speech to the late comrade Thandi Gloria
Mahlangu. Comrade Thandi was born in 1967 and
passed away at a very young age, this year.
The ANC Caucus, in line with the best traditions of
our revolutionary movement, and in the most befitting
manner to our martyrs, revolutionaries, heroes and
heroines of our people, defined her revolutionary
character as “” Patriotic, Activist and a Leader.”
If death did not rob us of this militant, a true Mbokodo,
she would be sitting on this row, on the right corner,
but on the immediate left of the opposition, playing
her role as the first line of defence, the vanguard of all
of us – right her, this side of the House.
Honourable Members, allow me to convey to
Comrade Thandi that, I am privileged by historical
necessity to present this budget that seeks to take
infrastructure to the people, to change their balance
sheet through commonly owned public property, the
common heritage of all the people.
Let me say to you Mbokodo, that I am deeply worried
that our country and province is experiencing a
deeply worrying phenomena, of the most violent and
sheer destruction, burning, torching, vandalism,
looting, littering and generally - an attitude of NOT
caring for people’s property.
In delivering this R2,5 billion budget, I am deeply
inspired that you cared about the people, you cared
about their common
heritage, that is people’s
property, which is the real source of people’s power.
I am inspired that you cared, so I care and, therefore,
we care about people’s property for people’s power.
We will work with the people, talk to them and ensure
that we all care about “people’s property for people’s
power”.
In tribute to you Mbokodo, let me announce, that in
the true spirit of your activism embedded in
Nthirishano Outreach Programme, we will be
launching a campaign promoting caring of people’s
property, to be known as I Care, We Care campaign.
It will be an awareness and behaviour-changing
campaign, focusing on the importance of preserving
people’s property. We, therefore, call on communities
across Gauteng to take a stand and defend their
community properties.
We know apartheid denied them ownership of assets,
we know public property is still treated as an elitist
thing from which they are alienated from. We
condemn these acts, and we call on communities to
care for people’s property.
Whilst it is correct to condemn vandalism and sheer
destruction of public property, it is not enough. We
must go to the ground. I see SABC has taken a stand
on this matter, and has shown that it cares.
SABC clearly says, it will not give publicity to Heroes
of Destruction, to fanatics of vandalism. Whether that
action is right or wrong, is not for me to judge. What I
applaud, is that they care. They have taken stand.
We will announce the details of the launch of the
campaign in June, this year.
As the ANC Caucus said, Lala Ngoxolo Qabane. We
shall never forget you.
Before I proceed, let me thank, and deeply appreciate
the solid and excellent foundation laid by my
colleague, Comrade Mayathula-Khoza. Your excellent
work will stand the test of time. Well done on taking
the Department to this level.
Honourable Members, allow me first, to report that, as
we present this Budget, we do so, humbled by the
directive that Premier David Makhura gave us.
When he delivered, yet another comprehensive,
detailed and deeply inspiring State of the Province
Address, Premier directed us to fast-track the
implementation of the R6 billion Kopanong Precinct
Project. This multi-billion project constitute our real
contribution to renew the Inner City of Joburg, through
the provincial government’s Office Park Precinct.
I am pleased to announce that, working with
Treasury, we will finalise the process of appointing a
Transaction Advisor before the end of the second
quarter.
Let me reaffirm and emphasise that the Transaction
Advisor is critical to ensure that we get professional
and expert advice on the Triple P Model (PPP) to be
followed, the Risk Management and funding models,
as well as arrangements for the Kopanong Precinct.
We do need the Transaction Advisor to ensure full
compliance and efficiency in the technical process.
As you will surely agree, this is a tightly regulated and
audited matter. It is therefore important that we
ensure clean governance and administration of the
process. We are therefore on track on this matter.
I am also pleased to announce that Treasury has now
granted us the permission and approval to issue the
Request for Qualification.
This is absolutely critical and very important, as it
allows us now to invite qualified and competent
developers who will deliver the Precinct.
Let me assure you, that we will make sure that the
process of evaluating and finally awarding the bids to
developers is fully compliant, clean and devoid of any
corruption and or malpractices.
Premier also directed us to ensure that we fast track
delivery on the Green Agenda and alternative sources
of energy.
This initiative is being implemented through the
following programmes:
•
The Roof-Top Solar PV in all Government
Buildings,
•
The installation of Trigeneration/Cogeneration
plants in identified hospitals,
•
The conversion of boilers from coal to dual-fired
engines and supply of gas for boilers in the hospitals,
and
•
The replacement of inefficient light bulbs with
LED lights at various facilities across the province.
The Green Agenda Programme is being implemented
in partnership with the private sector. We are also
working together with the National and Provincial
Treasury.
Honorable Members, considering that this also
follows a Triple P model (PPP), we also need the
Transaction Advisor to ensure that we run a fully
compliant, transparent and clean process.
I am therefore pleased to announce that we now have
the necessary Treasury Approval for the Roof Top
Solar PV. This was granted in March 2016.
In terms of this approval, we will proceed with
implementation at 16 health facilities. We have since
issued the RFQ for the installers in April 2016 and we
are, also, concluding the appointment of a
Transaction
Advisor
for
this
programme.
Implementation will commence by December 2016.
We estimate that at full scale, this programme will
generate 350 Megawatt of renewable energy.
With regards to the cogeneration/trigeneration plants,
we have received Treasury approval to proceed with
the implementation at Chris Hani Baragwanath
Academic Hospital. The cogeneration/trigeneration
technology will produce electricity, heating, cooling
and fire suppression, using gas for our hospitals.
To date, we have retrofitted more than 265 000 LED
lights in various hospitals and other facilities, ensuring
energy efficiency, reduction of maintenance costs and
a longer life span.
The boilers in eight health institutions are now running
on gas. These are: Kopanong, Dr. Yusuf Dadoo,
Southrand, Transvaal Memorial Institute, Discoverers
Community Health Centre, Rahima Moosa, Tembisa,
Helen Joseph, Weskoppies and Sebokeng. As a
source of energy, Gas is cleaner and cost-effective.
Honourable Members, Premier and Exco directed us
to dispose of the Immovable Assets that are not
critical to our core business, and to transfer to sister
Departments those assets that can give us economic
value through their mandates.
I am pleased to report that we have appointed an
Auction Service Provider to commence immediately
with the disposal of the identified state owned houses
in the various parts of our development corridors.
Let me announce to the people residing in these
properties, that we will commence in June with full
implementation of the already finalised business plan.
Let me, however assure them, and we know that
most, if not all of them, are government employees.
We will engage constructively with them. We will
ensure that the process is conducted in the most
humane manner, taking into account their
constitutionally protected rights and legitimate
expectations.
Honourable Members, I am pleased to announce that
we have now completed and finalised the Immovable
Asset Register with a total value of R30 billion worth
of land and buildings.
We will formally close the project at the end of July,
having ensured a proper hand-holding of our officials
to transfer technical skills to take the process forward.
The Immovable Asset Register constitute the
“common heritage” of the people as a whole. It is a
source of people’s wealth. It is a real source of
people’s power.
I am pleased to announce that we have completed a
new strategic perspective, a new approach on how to
unlock value, how to leverage economic value
embedded in the Immovable Asset Register to
positively impact the key macro-economic variables,
especially economic growth and job creation.
When we presented the Immovable Asset Register to
Exco in March, we were clearly directed to ensure
that the Immovable Asset Register will create
economic value for the people of the province. This is
in line with the provisions of the Government
Immovable Asset Management Act (GIAMA).
The Department was duly appointed as the custodian
of the Immovable Asset Register, working with client
Departments as Users of the assets. This, excludes,
assets of owned by the Departments of Transport and
Human Settlements.
We have adopted an approach of creating multiple
sources of economic value in the Immovable Asset
Register. To explain the thrust of our approach to
unlocking economic value in the Immovable Asset
Register, we benchmarked with the best practices
applied by the financial investment sector.
As you know, financial investors use highly
innovative, creative and dynamic techniques and
methods to build multiple sources of value in various
financial products, such as stocks, bonds and money
market transactions.
Whilst this investment practices are highly exposed to
various types of risks, the difference is that we are
talking, not about speculative investment, but on the
contrary, about investment in real immovable assets.
Already, one of the best models we are considering in
the new perspective, is the delivery of infrastructure
through the Precinct Model.
Honourable Members, we are convinced that the
Precinct Model of delivery of infrastructure will give us
high socio-economic impact, it will transform the
spatial legacy of apartheid, it will modernise our most
infrastructure neglected areas, especially townships,
without doubt, it will grow the economy and create
jobs.
The traditional model of delivery Infrastructure in
small bids-and-pieces, in isolated areas and far from
each other, and without any service delivery linkages,
do not make any serious impact. The traditional
model does not give positive service delivery
experience to the people.
Honourable Members, we must therefore move away
from the traditional delivery model, and embrace the
high impact projects, and therefore turn around the
look-and-feel of our townships by delivering state-ofthe -art assets through the Precinct Model.
Many of our assets are not fully utilised, we have
underutilised buildings and land. As part of the new
approach, we must find innovative and creative
solutions to finding multiple sources of value in our
under-utilised assets.
As a good benchmark, let us look at the example of
the Nelson Mandela Children’s Hospital, built on land
owned by Johannesburg College of Education. This
means that the land that was previously under-utilised
will now be fully utilised with the best economic value
derived from it. Honourable Members, let me assure
the doubting Thomases, who may say, “This is just
another talk about talks”.
We have, for example, hosted a Round-Table with
Universities in Gauteng last week at the Innovation
Hub in the City of Tshwane. Premier David Makhura
had instructed us to engage Gauteng based
Universities on a range of areas of cooperation.
Delivery of infrastructure was identified as one of
them. Let me announce that the Round-Table was a
resounding success. We were thrilled by the high
level of convergence on ideas. Universities presented
their proposed Precincts to meet their infrastructure
needs.
We agreed that we will work together using our
resources to drive a Precinct Model of infrastructure
delivery. We have pledged to use our Immovable
Asset Register to partner with Universities to meet
their infrastructure needs.
We agreed with Universities that they will submit their
feasibility studies reports by the end of September.
Honourable Members, already, Wits University have
submitted to the Provincial Government their Precinct
Model and indicated the support they require.
Let me assure students and Lecturers that we are
working hard to place the Immovable Asset Register
right at their door-step to address their needs - such
as accommodation and office space. We expect them
to preserve and care for this assets, not to vandalise
destroy and torch them.
Honourable Members, the financial and investment
models of creating multiple sources of value will be
discussed and engaged, and the details will be
presented in due course.
Let me announce that we intend to formally launch
the Immovable Asset Register and present it to our
people, to local and international investors before the
end of September this year.
Honourable Members, our Immovable Asset Register
will be the bedrock of the Transformation,
Modernisation and Reindustrialisation. Gone are the
days when we would look in vain for real assets to
drive investment opportunities. We have now
quantified our assets, and the ball is in our court.
I am pleased to announce that, just this week, we
have turned a completely new page in the delivery
and management of infrastructure in the Gauteng City
Region.
We launched the state-of-the-art, innovative, first of
its kind, and without doubt, an international
benchmark. We successfully launched the Lutsinga
Infrastructure House, as a nerve centre of
infrastructure delivery and management.
Lutshinga is a Venda word, meaning Nerve, hence
we call Lutsinga, the Nerve Centre of Infrastructure in
Gauteng City Region.
This state-of-the-art infrastructure facility, which cost
us slightly below R5 million, houses all our five core
delivery technology systems. These are:
Immovable Asset Register as the bedrock of the
TMR and multiple investment opportunities including
the Township Economy Revitalisation.
Project Management System based on Treasury
approved Infrastructure Delivery Management
System (IDMS), which is the automation of the
Infrastructure Project Pipeline.
E-Maintenance for Health Facilities, allowing any
person and even members of the public to log defects
in hospitals with us. It helps us track the performance
of our artisans. E Maintenance will be supported by
the State of the Art, Artisans Training Centre to be in
the Second quarter. .
Expanded Public Works Programme, which is
the construction intensive job creation programme,
Lastly, the Lutsinga Infrastructure Monitor, which
is our electronic media reporting platform monitoring
and reporting on macro-economic variables we will be
impacting on.
Lutsinga will ensure that we manage and deliver in
the most effective, efficient and transparent manner,
as required by the Public Finance Management Act.
It will ensure that we avoid irregular expenditure,
wasteful and fruitless expenditure, and the
unauthorised expenditure. It will ensure that we get
value for money, account for each and every cent that
government spends.
It will radically transform and modernise project
management spaces, currently run as dark boxes,
with no visibility and transparency. It will ensure and
address the concern of the Portfolio Committee, of
spending all the money, but, with poor and low
performance.
We will have full visibility and transparency and
enhance our fight against corruption and running
government money down the drainage system.
It will ensure that we pay service providers in time.
Let me announce that we will pay the service provider
who lodged a complaint with the Public Protector.
This matter appeared in the Mail and Guardian of last
Friday.
The story sought to create an impression that we are
defying the Public Protector. Let me assure you
Honourable Members ,that we respect the decisions
of the Public Protector.
I have invited the service provider to the House to
formally declare the apology in public. It does not
have to take reporting to the Public Protector to pay
service providers.
As directed by the Public Protector, we will settle the
payment before the end of June, this year.
Over the 2016 MTEF period the department has been
allocated a total budget of R8.1 billion with R2,5
billion for 2016/17. The department will be managing
R4.2 billion for infrastructure projects on behalf of
client departments, taking the total budget under our
management to R6.7 billion.
Lastly, we are grateful to the Premier for his
leadership and guidance. To colleagues in the
Executive Council, for your sound advice and
counsel, the Chairperson of the Portfolio Committee,
Ms Lindiwe Lasindwa and Honourable Members for
your sharp oversight and support and to Comrades in
the governing party for your sound advice and
counsel.
I also extend a word of appreciation to the HoD,
Bethuel Netshiswinzhe and the outstanding GDID
Team for your resilience and co-operation and the
people of Gauteng.
End