Honourable Speaker and Deputy Speaker of the National Assembly
Acting President and Deputy President, The Honourable Ramaphosa
Ministers present; Deputy Minister in the Presidency for Planning, Monitoring and
Evaluation and other Deputy Ministers present
Honourable Members
National Planning Commissioners present
Invited Guests
Ladies and gentlemen
Fellow South Africans
In 1994 we embarked on a long and arduous journey towards healing the wounds of our painful past and transforming our state and society into a truly democratic one. In embarking on this journey, we knew that it would be hard, and that there would be hills and valleys; we knew that there would be obstacles in some sections of the journey, and we would need to clear the bushes to make the way.
Good travellers pack everything they think they will need along the way. We did exactly that in 1996 when we adopted the Constitution which sets out the values that we want in society as South Africans.
The Preamble to our Constitution commits us to:
“Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;
Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;
Improve the quality of life of all citizens and free the potential of each person; and
Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.”
These commitments set out our task as Members of Parliament, the Executive, the judiciary, as well as all sectors of society. On this occasion of a year in which we celebrate the milestone 20th Anniversary of our Constitution, we should accordingly reflect on whether or not we are equal to the challenge, and ask ourselves amongst other the following questions:
- Are we living out the values of our Constitution?
- Are we acting in ways that contribute towards healing the divisions of the past?
- Do the programmes that we adopt and implement truly improve the quality life of citizens?
- Are we succeeding in freeing the potential of each person?
- And how much progress have we made in building a united and democratic South Africa?
In this month, being Freedom Month, we celebrate 22 years of democracy, which means that we have made a transition into adulthood as a country. We have entered a stage in which we can no longer use lack of experience to explain our shortcomings. We have to raise our game because that is what our people expect of us.
Honourable Chairperson,
As we undertook the political transformation of our country to reflect the ideals of our Constitution that our people fought for, we adopted a number of policies and programmes. As you know, the work of the greater part of the first two decades of our freedom is captured in the 20 Year Review Report.
While the 20 Year Review Report demonstrated the progress we achieved in addressing the trio challenges of inequality, unemployment and poverty, we have made less progress in changing the structure of our economy. This in turn impacts on the overall progress we could make in attending to the aforementioned trio challenges. Greater efforts are required to broaden inclusion and ownership in the economy.
In light of the persisting structural transformation challenges we faced, our government established the National Planning Commission and a new department responsible for monitoring and evaluation in 2009. We created these structures to clear the bushes along the journey, to ensure that our policies impact on the lives of our people, and to accelerate the alleviation of the trio challenges of unemployment, poverty and inequality.
In pursuit of our constitutional commitments, we adopted the National Development Plan (NDP) in 2012 as our long-term vision and plan. The Medium-Term Strategic Framework (MTSF) 2014-2019 has translated the NDP into a five-year plan which spells out the outcomes we seek to achieve in the current five-year electoral period.
It is therefore appropriate in this year in which we celebrate the 20th Anniversary of our democratic Constitution, that we re-iterate our commitment to overcoming our challenges, as a State and as society, including the challenge of the scourge of racism.
As you know, the Department of Monitoring and Evaluation and the NPC were brought under the political leadership of one Minister in 2014. The task of the new Department of Planning, Monitoring and Evaluation is to provide unequivocal answers to questions we posed above; it is expected to guide how, as a nation, we proceed to address our socio-economic challenges, and enable government and society to take appropriate action.
Some of the key highlights of progress that our monitoring has indicated we are achieving are as follows:
On Poverty Reduction
Head-count poverty has been dramatically reduced through the social policies of government. For example, between 2001 and 2011, the poverty head-count in Msinga in KZN moved from 60% to 37% and in Westonaria in Gauteng the poverty gap which measures intensity dropped from 47% to 45%.
On Education and Skills
Post-school enrolment has increased steadily although it remains skewed towards universities. Over 969 000 students were enrolled in public higher education institutions in 2014, which reflects good progress towards the target of enrolling 1 million students by 2019. The racial composition of students has changed, with more Black students being enrolled. The Nationals Student Financial Aid Scheme (NSFAS) budget has increased from R441 million in 1999 to R9.2 billion in 2015, although funding remains inadequate compared to demand.
On Health
Life expectancy has increased from 57.1 years in 2009 to 62.9 years in 2014. The under-5 Mortality Rate has decreased from 56 deaths per 1000 live births in 2009, to 39 per 1000 live births in 2014. The Maternal Mortality Ratio has decreased by more than 50%, from 302 per 100 000 live births in 2009 to 141 deaths per 100 000 live births in 2014.
On Access to Basic Services
Significant progress has been made in extending access to basic services for our people. Access to water increased from 61% in 2001 to 90% in 2014. Households receiving free basic water services increased from just over 7 million in 2007 to nearly 12 million in 2013.
In 2014, 86% of households had access to electricity and over 2 million households benefited from the indigent policy which provides free electricity to our people who cannot afford it.
Nearly 173 000 subsidy houses, rental flats and hostel upgrades have been completed since 2014. The target is that 745 000 households should be living in adequate housing, through the subsidy and affordable or gap housing programmes by 2019.
Also, since 2014 close to 77 000 title deeds were issued to homeowners, and 41 000 title deeds of 145 000 subsidy houses that were built were handed over to new home owners. More needs to be done to eradicate the backlog of 900 000 title deeds by 2019.
On Fighting Fraud and Corruption
Over 200 corruption priority cases involving 1 065 persons were investigated and 116 persons were convicted since 2009. Since 2012 the Specialised Commercial Crime Unit has convicted about 3 340 individuals for serious corruption and serious financial and economic crimes. A total of 234 government officials were convicted for corruption-related offences from 2014/15 financial year to date. We are making steady progress in the fight against organised crime.
I have outlined some of the areas of progress however, it is clear we still have much ground to cover in all these areas and in many others.
For example, this year started with the eruption of racism in our public discourse. Last year, young people at tertiary institutions intensified a campaign to bring to public attention the difficulties they continue to face in opening the doors of learning, of which the Freedom Charter spoke. They highlighted exclusion on the basis of language and income, and the indignity this casts upon them.
The growth rate of the South African economy continues to be disappointing with different agencies revising the growth forecast downwards. Working with social partners, Government is pressing ahead with the implementation of the Nine Point Plan which is expected to start showing results in the next two years.
The decline in the growth of our economy will reduce resources available to government to implement its development programmes; and we have experienced the most severe droughts in over 100 years; food prices have sky-rocketed; many of our people, especially the youth, are unemployed and those that are employed are finding it increasingly difficult to meet their daily needs. All these factors are causing our people widespread hardship, which makes the journey seem longer.
In some communities protests continue about lack of service delivery, or the poor quality of services provided. This is happening across all provinces, which tells us that this is not an issue to score cheap political points over; it points to deficiencies in our systems that we need to address collectively.
All these challenges are a reminder of how hard our journey is, while also demanding of us, in all sectors, to redouble our efforts, acting in unity of purpose and determination, and inspired by the shared vision of the NDP.
Honourable members,
As you are aware, the President announced that the next municipal elections will be held on the 3rd of August 2016. This will be an important milestone in the journey towards “a democratic and open society based on the will of the people”. More importantly, this will give us an opportunity to strengthen our mechanisms and programmes to improve the quality of life of our people, and the services we deliver.
Allow me to give a brief overview of the different programmes of the department within this context.
Planning
The main focus of our national planning programme is to institutionalise planning as envisaged in the MTSF 2014-2019. Institutionalising planning entails (a) establishing robust systems, policy and legislative frameworks and processes for planning in government as a whole; (b) developing requisite institutional capacity for planning; (c) developing evidence-based plans that draw on monitoring and evaluation and other data sources; (d) ensuring that planning sets the priorities that inform the allocation of resources and (e) influencing the planning philosophy of the country, in all spheres. We have made progress in implementing the different elements of institutionalising planning. However, more needs to be done.
To entrench our planning architecture, President Zuma appointed the second National Planning Commission in September 2015. The mandate of the Commission is (a) to promote and advance the implementation of the NDP across different sectors of society; (b) undertake detailed planning in a selected number of sectors; (c) conduct regular engagements with various sectors of society on all matters pertaining to the long-term development of the country; (d) facilitate stakeholder engagements aimed at forging a social compact towards more effective implementation of the NDP; (e) take a cross-cutting view, undertake research into long-term trends, analyse implementation of short- to medium-term plans; and (f) contribute to the development of international partnerships and networks on national planning.
The Commission has organised its work into three priority areas. They are: (a) proposing new and strengthening existing measures aimed at enhancing the quality of life of South Africans; (b) investigating and proposing ways to ensure the country has an expanded, inclusive, efficient and fairer economy; and (c) undertaking research and engaging institutions responsible for developing the capacity of state, enhancing leadership and engaging the citizenry to actively participate in the implementation of the NDP.
The Commission will play a think tank role and advise government on a number of development challenges. Through intensified stakeholder engagement, the Commission will mobilise members of society to play an active role in the implementation of the NDP.
On Friday, the 22nd of April in Johannesburg, the NPC will address a media conference to elaborate on its plan of action.
Research
Research is an important part of our work. In this regard, amongst others, we have completed a research project in collaboration with the University of the Witwatersrand and 10 young researchers focusing on urban innovation. The research results will be published in an edited volume in the course of 2016/17. Another study investigating the feasibility and modalities for a national minimum wage policy was also concluded. The National Income Dynamic Study (NIDS) remains a flagship project, and the results of the fourth survey will be released in the second half of this year. The NIDS enables us to get a better understanding of the changing income dynamics in our society. It answers the questions related to who is getting ahead and who is falling behind, thus enabling better targeted policy. The study is continuing and the fifth survey of the study will get underway in the course of this financial year.
We have commenced the formulation of an integrated water plan as mandated by Cabinet, working with the Minister of Water and Sanitation. We aim to finalise the plan in the course of 2016/17.
National Spatial Development Framework
The fragmentation of the planning function is a matter that has bedevilled our government for some time. I am pleased to announce that in discussions with Ministers of Rural Development and Land Reform and Cooperative Governance and Traditional Affairs we have agreed that the planning functions be relocated. This agreement includes that DPME will take over the responsibility for driving and producing the National Spatial Development Framework, a plan which will indicate what aspects of our NDP will happen where and when across our whole country.
We need to work with speed because on August 3 we will elect our fourth democratic local governments. These 257 municipalities will continue to take forward the National Development Plan through their IDPs which will outline their plans for each municipality for the 2016 to 2021 period.
As Chairperson of the National Planning Commission, I have requested that we finalise the National Spatial Development Framework over the next year which will ensure that South Africans have a clear understanding of how our national programmes will transform the national landscape. We will ensure that municipalities are able to integrate our national plans into their municipal spatial development frameworks (SDF) and that provinces also clearly understand what we will be doing and where it will be done. Parliament will play an important role in assisting the National Planning Commission in this important work to ensure that we understand the current spatial dynamics and to inform our planning for the future across the country.
Ensuring Alignment of Plans and Budgets with NDP
Our systems to assess the alignment of the plans of government to the NDP are maturing. We have assessed the annual performance plans of 39 national departments as well as nine provincial plans. This is an ongoing programme that will continue in 2016/17.
Critical to the success of the NDP is its alignment with the actual budgets of various departments. We should put our money where our mouth is, lest our intentions become mere empty talk. The DPME is working with National Treasury to ensure that alignment happens, so that budgets reflect our actual commitment to the NDP Vision 2030.
For its part, the DPME’s budget must reflect our commitment to ensuring that proper mechanisms to monitor, evaluate and supervise the work of government are in place and are working and that we communicate the progress being made and challenges encountered. In essence this is what the budget of the DPME is all about.
We must at all times be able to tell whether or not we are on course towards achieving the NDP goals through the five year MTSF, and, where performance is unsatisfactory, to ensure that appropriate interventions are undertaken.
Socio-Economic Impact Assessment (SEIAS)
The Socio-Economic Impact Assessment System (SEIAS) assists government to examine and mitigate against the unintended consequences of new and existing legislation and regulations. About 117 proposals were subjected to SEIAS, comprising of 65 Bills, 16 regulations, 25 policies and 11 plans and frameworks. In 2016/17, DPME will continue providing support to departments to apply the SEIAS methodology and to ensure that quality proposals are developed.
DPME also evaluates major government programmes, such as incentives for industry and business, to determine whether they are achieving their intended objectives. A total of 45 evaluations were completed, or are underway, covering roughly R75 billion of fiscal allocations. Nine new evaluations will be undertaken in 2016/17.
Data War-Room
In addition to DPME’s monitoring programmes, we are also creating an integrated data war-room that will provide up-to-date information on progress of various government programmes. DPME will continue to work with Statistics South Africa to identify and produce critical data to support effective and credible reporting.
30 days payment of legitimate invoices
DPME is tasked with the responsibility to ensure that departments and state agencies meet their PFMA obligation to pay suppliers within 30 days. This work is yielding positive results. During 2015/16, 44 service providers reported cases of non-payment of invoices. As a result of DPME’s intervention, more than R41 million was paid to some of the service providers. In 2016/17, the DPME will work with defaulting departments on an individual basis to determine the root causes of non-payment and assist in resolving them.
Operation Phakisa
Operation Phakisa has introduced a new dynamic, results-oriented methodology to how Government undertakes projects. The methodology entails Government engaging with all stakeholders in a sector, in a focused, simultaneous and intense manner, to craft a vision and mechanisms for resolving blockages to the sector’s potential. Substantial progress is being made through the methodology in regard to South Africa’s ocean economy, and the Health, Education and Mining sectors.
The Ocean Economy programme under Operation Phakisa focuses on (a) Marine Transport and Manufacturing, led by the Department of Transport; (b) Offshore Oil and Gas, led by the Department of Mineral Resources; (c) Aquaculture, led by the Department of Agriculture, Forestry and Fisheries; (d) Marine Protection Services and Ocean Governance, led by the Department of Environmental Affairs; (e) Small Harbour Development, led by Department of Public Works; and (f) Coastal and Marine Tourism, led by the Department of Tourism.
Some of the achievements of Operation Phakisa are as follows:
- Investments amounting to about R17 billion in the Oceans Economy have been unlocked;
- Over 4 500 jobs have been created in the various projects of the Oceans Economy;
- Over R7 billion has been allocated by Transnet National Ports Authority to improve our ports;
- The health sector has been successful in creating 280 Ideal Clinics in 2015/16, within the group of 1 139 clinics identified for this financial year;
- In order to be declared an Ideal Clinic there are standards to be met. The number of clinics scoring over 70% has increased from 139 to 445. The number of clinics scoring less than 40% has decreased from 213 to 90 within the period of one year.
- The Delivery Lab Reports for Operation Phakisa in Basic Education and Galvanising Growth in the Mining Sector have been finalised and we should see results in these areas soon.
Local Government Monitoring
The Local Government Management Improvement Model programme has enrolled 30 municipalities across 6 provinces. While some municipalities have fared well in the assessments, such as Matatiele (EC); Kopanong, (FS); Lephalale (LP); and Rustenburg (NW), underperformance was recorded in critical management areas across many, mainly in regard to service delivery, supply chain management, management of expenditure and community engagement.
Similarly, the assessment of management practices in national and provincial departments suggests that there is organisational learning, and that many departments find value in the self-assessment method of this DPME programme.
Frontline Service Delivery Monitoring and Support
DPME implements programmes to assess the experience of citizens with service delivery, such as the Presidential Hotline, Unannounced Visits, and Citizen-Based Monitoring.
The Presidential Hotline provides a channel for citizens to seek redress when service delivery fails. The Hotline logs an average of 2000 cases per month. The cumulative resolution rate for Hotline cases stands at 98%.
Our work demands that we are visible in service delivery sites, beyond interacting with departments to monitor their plans and programmes. In the past year, we assessed over 100 facilities and conducted improvement monitoring in 120 facilities.
These unannounced visits also help to highlight various institutional challenges, and enable DPME to advise the relevant departments on measures to be taken to remedy the situation.
In the previous financial year we completed a two year action learning process to develop a citizen-based monitoring method. We have published a toolkit for citizen-based monitoring and we will be supporting government departments to implement this method, which puts the citizen experience at the centre of service delivery.
Budget
Honourable members, additional funding of R218.6 million has been allocated to DPME over the MTEF, to compensate for cost-of-living increases and to provide additional capacity in the Department. This raises the Department’s budget for the 2016/17 financial year to R827.7 million, which includes a transfer payment to the National Youth Development Agency of R405.8 million. The Department is currently finalising a review of its strategy with a view to increase capacity to more effectively plan, monitor, evaluate and support the work of Government.
It is worth mentioning that the Department has obtained clean audit opinions for the previous three financial years. The audit for the 2015/16 financial year is underway, and we are eager to continue the track record of clean audits and good governance.
I would like to take this opportunity to thank Deputy Minister Manamela for his support in implementing the mandate of the department over the past year. We have benefited immensely from our ongoing interactions with the Portfolio Committee, and I would like to take this opportunity to thank the Chairperson, the Honourable Mabe and members of the Committee.
My gratitude also goes to members of the National Planning Commission for their expert advice on matters of national planning. During the past year, we appointed the Secretary of National Planning, Mr Tshediso Matona, who is also the acting Director-General of the department following the departure of Dr Sean Phillips. I thank him most sincerely for his service in managing and leading DPME, working together with the executives and officials of the department. Finally, I would like to thank my family, my wife Bridgette and the children for their support, on which I know I can always rely.
Conclusion
Let me end where I started. On this occasion of a year in which we celebrate the 20th anniversary of the Constitution, it is pertinent that we remind ourselves that we are on a journey towards a better life for our people. It is true that we are currently experiencing challenges on a number of fronts. These are the bushes we need to clear in order to proceed with the journey. We dare not take our eyes off our destination to a society where the potential of all South Africans has, indeed, been freed. We take this opportunity to recommit ourselves to the founding values of our constitutional democracy. It is a commitment to the creation of the kind of society antithetical to what former President Mandela, called a skunk of the world.
I thus ask this house to support the 2016/2017 budget of the DPME.
I thank you.
