Chairperson, hon members, on 21 and 22 February 2008, the Select Committee on Finance held hearings with the Eastern Cape provincial departments and the Great Kei Municipality. [Interjections.]
Concerning the departments of local government and housing, we observed the following: poor planning by both the departments and municipalities, as many of the approved projects were not ready for implementation; and many of the emerging contractors lack capacity, and the established contractors were not attracted to the rural areas.
Chairperson, the slow start to the housing rectification programme is a great cause for concern. Community housing that the Eastern Cape had inherited from KwaZulu-Natal, and I mentioned Matatiele, is experiencing a large shortage of funds.
The rectification programme has been handed over to the National Home Builder's Registration Council, NHBRC. All contractors are to be approved by the NHBRC and must be compliant with the Construction Industry Development Board. This is progressing slowly due to the lack of capacity; for example, only 5 000 units have been dealt with out of the 19 800 units.
There was some misalignment of municipal infrastructure grant funds and the housing grant. We were also informed that houses have been built without the necessary support of the bulk infrastructure.
The building of infrastructure is the responsibility of the Department of Public Works and this in itself raises concerns whereas in the Eastern Cape health and education seem to have many demands for public works projects.
The library service grant for the Eastern Cape was R22,68 million of which only R10,49 million was spent. The department reported that the main reason for underspending was the lack of capacity.
Chairperson, in the Great Kei Municipality, electricity distribution was confined to the Komga area. Eskom received only R500 million from the Department of Minerals and Energy to re-establish networks in Komga.
This is a struggling municipality that would need a lot of assistance from us here at the NCOP. Refuse removal was also a challenge and the Great Kei Municipality seems to have a problem with collecting revenue even at coastal holiday resorts, such as Kei Mouth and Morgan's Bay, which could assist them greatly if they got their act together.
Recommendations are that there should be ongoing forums where planning issues are discussed to ensure that stumbling blocks are removed, and that follow-up by the Select Committee on Finance would be vital.
In consultation with the hon Sogoni, we would like each member to leave R3,00 with Comrade Sogoni or myself so that we can buy a tie for Comrade Selebi from the Free State. Thank you. [Laughter.]
Debate concluded. Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.