RURAL DEVELOPMENT SECTOR:
PROVINCIAL & LOCAL GOVERNMENT; LAND AFFAIRS AND AGRICULTURE; WATER AFFAIRS AND FORESTRY; PUBLIC WORKS MINISTRIES
15 February 2001

Briefing documents:
Provincial and Local Government (see Appendix 1)
Public Works (see Appendix 2)
Water Affairs and Forestry (see Appendix 3)

Ministry of Provincial and Local Government
Minister Mufamadi stated that South Africa’s painful past had led to gross inequalities in the distribution of wealth and income. Rural South Africa has a high level of poverty, sparse settlements, non-existent housing and no basic services. The situation is no better in urban areas. Approximately 60% of SA’s population are found in cities and many are unemployed, live in overcrowded circumstances and enjoy no basic services. This Cluster has devised an Integrated sustainable rural development strategy and an Urban renewal strategy. Both strategies are to address the infrastructural imbalances of apartheid and alleviate poverty. Integration of service delivery and development at local levels is a great challenge. The Minister conceded that these programs would only be successful if partnerships are fostered with key roleplayers in the private sector.

Ministry of Public Works
Minister Stella Sigcau noted the implementation of the Community Based Public Works Programme (CBPWP) which is a poverty alleviation programme focussing on job creation and infrastructural development. Additionally, the program is aimed at stimulating local economic and social development. A number of temporary jobs have been created thus far but the aim is to make these jobs sustainable. The cluster has identified specific nodes in which projects will be put in place. In some nodes the project numbers are as high as 715. It is therefore important for the various departments to work together.

The Minister stated that they have also started Community Production Centres (CPCs) with the objective to create a vibrant rural economy that is driven by agriculture. Pilot projects have been introduced in the Eastern Cape, KwaZulu-Natal and the Northern Province. As remote areas do not have access to government services, the Ministry has started to introduce Multi-Purpose Community Centres in rural areas so as to provide a ‘one stop’ service centre. R8.5m has been allocated to kickstart these multi purpose centres.

Ministry of Water Affairs and Forestry
Minister Ronnie Kasrils stated that sanitation and the provision of water to inaccessible areas is a priority for his department. The recent cholera outbreak has necessitated the need to strengthen inter-departmental cooperation in the provision of sanitation services. Mr Kasrils pointed out that 250 projects have been completed. He cited the example of the Orabi Dam in the Northern Province which had been built by the previous regime in the 1980s to cater for the water needs of white farmers. This left the predominantly black population in the province without proper irrigation facilities. At present the department has set up pipelines to 56 villages so to provide reservoirs for each village. Initially problems were experienced in getting water directly to the villages but measures have been put in place to address them.

Ministry of Land & Agriculture
Minister Thoko Didiza said government must create incentives to attract private sector investment to the rural areas. Building infrastructure in rural areas will improve the quality of life there. The Department of Land and Agriculture has to create a base in order to encourage sustainable, orderly development in these areas. The Minister pointed out that special planning legislation is required to provide for a proper framework within which to provide this base.

The Minister emphasised the need to finalise the land rights legislation which would be coming up for public debate by April 2001. The Minister reiterated what the previous Ministers had said about co-operation between departments.

Ministry of Mineral and Energy Affairs
Minister Phumzile Mlambo-Ngcuka stated that they are trying to synchronise activities at a micro level. Many of the problems in rural areas are social in nature. The strategy is to tackle these problems from an economic angle. Some of the industries identified as critical to rural development are tourism, agriculture, IT and transport. This is where basic infrastructural development will take place.
She noted the importance of information. Previously government departments used to sell information to one another which was an expensive and tedious task. A moratorium has now been placed on the trading of information – which must now freely available amongst departments. This would facilitate development activity.

For detail, please refer to the briefing documents of these Ministries.

Questions from the media and replies
(Q) What is a silo approach?

(A) Minister Didisa: It means working in isolation as a department.

(Q) What can be expected from community-based programs as they relate to urban renewal. Could you shed some light on them?

(A) Minister Mufamadi: When one looks at Alexandra and Sandton one would think that they are two areas in different countries so diverse are they. Surprisingly they share the same revenue base. The people of Alexandra had contributed greatly to the infrastructural development of Sandton yet no such development had taken place in Alexandra. The Minister emphasised the need to redress these inequalities of Apartheid. The focus should therefore be to create local enterprises that would lead to the creation of jobs. This in turn would allow municipalities to create a decent revenue base so as to provide much needed services to communities. The broader aim is to improve the quality of life of people in these communities.

(Q) Why is interdepartmental co-operation so difficult?

(A) Minister Mufamadi: The process of integration between departments is ongoing. We have made great strides since 1994. No country in the world has perfect integration between their departments.

(Q) Assurances have been given that no rural areas would be neglected in the implementation of these programs. Will people flock to areas where developments are to take place? How will government cope?

(A) Minister Didisa: We feel that people will not necessarily flock to the designated nodal areas. Other developments are also to take place. These strategies may have identified certain areas that are to be developed but this does not mean that other areas would be overlooked.
(A) Minister Ncguka: Even if people flock to these areas it could be good. This could densify areas so that the services that are provided can be utilised as optimally as possible.

(Q) Are these rural and urban development strategies merely a reincarnation of the RDP?

(A) Minister Mufamadi: The RDP is an ongoing process. It has not been abandoned. These programs are supplementry to the RDP. I feel that the use of the word ‘reincarnated’ is inappropriate.

Appendix 1:
INTEGRA TED SUSTAINABLE RURAL DEVELOPMENT
STRATEGY & URBAN RENEWAL

Relationship between ISRDS and URS
·
Aimed at addressing the continued persistence of the social, economic, infrastructure and spatial imbalances
· Programmatic and developmental approach adopted by both these programmes is i Aimed at addressing the micro- and local economic development imperatives
· Poverty targeting and alleviation an explicit objective The nodal points and localities identified in these programmes very deliberately correspond with the landscape of underdevelopment and poverty in South Africa;

ISRDS Vision
"To attain socially cohesive, resilient and stable rural communities that are economically empowered and productive contributing substantially to South Africa's growth and global competitiveness".

Minister Sydney Mufamadi
Minister of Provincial and Local Government

Relationship between ISRDS and URS
·
Integration of service delivery and development at a local level
· Decentralisation of decision making to local level. Directly aimed at building robust and sustainable municipalities and strong local government sphere.
· Demand-driven approach to development
· Various partnerships necessary to ensure the success of each of the programmes.

Implementation Phases
·
Strategy definition Strategy formulation
· Business Planning
· Delivery and implementation
· Monitoring and Evaluation.

Common Features
·
Realistic, ten-year, time horizon, 2000 - 2010
· Targeted nodal or spatial focus, as opposed the whole of rural and urban South Africa
· Phased implementation plan as opposed to starting in all the targeted nodes at the same time.

URS focus on
·
Khayelitsha and Mitchells Plain in the Western cape;
· KwaMashu and Inanda in KwaZulu-Natal;
· Mdantsane and Motherwell in the Eastern cape;
· Alexandra Township in Gauteng; and,
· Galeshewe in the Northern Cape.

Node roll-out
·
First set of nodes in February 2001, the ISRDS nodes will
be rolled out for delivery implementation by July 2001.Government to announce a further 30 rural nodes by the end of 2001.
· Average population in the rural nodes is between 250 000 to 500 000 people. Approximately 10 million people will benefit ISRDS programme.
· Each Node reflects a package of projects.

Basket of Services
·
ABET
· PHC Feeding Scheme
· Housing
· Kick-start Youth Prog.
· Housing support centres
· Telecentres
· Women in construction
· LED's
· Co-operatives
· Community-based Public Works Programme
· Working for Water
· Khula start
· Community Water & Sanitation
· Technology Centres
· Eco-tourism
· Land Care
· Cultural Industries
· Energy Centres

Allocation of Funds
·
R6 billion set aside for infrastructure development.
· R65 million made available to build institutional capacity in the identified nodes
· Line function departments (all spheres)

ISRDS Nodes
·
O.R. Tambo, North East ukwahlamba and EG Kel District Councils in the Eastern Cape;
· umzinyathi, Umkhanyakude, Ugu and the Zululand Municipality in Kwazulu-Natal;
· The Kalahari-Kgalagadi Cross Boundary District Council in the Northern Cape and the North West Central;
· Karoo District Council in the Western Cape;
· Sekhukhune Cross Boundary District Council in Mpumalanga and the Northern Province;
· Eastern District Municipality in the Northern Province; and
· Thabo Mofutsantyane in Owa Owa in the Free State.

Selection of Localities
·
Mdantsane is the second largest township in South Africa -Critical number of people's lives
will be improved
· Alexandra is presently in its centenary year of existence -first time that government will present a holistic plan for economic and social upliftment
· Mitchells Plain a direct result of displacement and forced removal of people from places such as District Six, people are geographically marginalised and alienated from the resource
base of this beautiful city

Node roll-out
· National and provincial government departments will play a I key role in targeting their support and programmes
· Cross-cutting programmes
-Food Security
-Basic Infrastructure
-Enterprise Development
-Human Resource Development;
-Land Reform

Programme Characteristics
·
Deployment of dedicated personnel in all national line departments
· Indispensable role of District municipalities in the ISRDS and metropolitan municipalities in the URS
· Deliberate and varied capacity building programme to address the needs and requirements of municipalities
· Regular reporting to Cabinet and the country as a whole
· Establishment of Digital Nerve Centre ensuring accountability through a transparent and effective monitoring system.

Importance of Intergovernmental relations

· Inexplicable link between sustainable development and good governance
· Sustainable Rural Development and Urban Renewal is dependant on co-operative governments
· DPLG currently co-ordinates intergovernmental relations
· The co-ordination and management of implementation of 15RD5 & URS responsibility of DPLG

Appendix 2:
PARLIAMENTARY MEDIA BRIEFING FEBRUARY 2001

THE INTEGRATED AND SUSTAINABLE RURAL DEVELOPMENT STRATEGY Targeting The poorest of the poor
Contribution by the Minister of Public Works
Stella Sigcau

INTRODUCTION
The Community Based Public Works Programme (CBPWP), is a poverty alleviation programme focusing on job creation and infrastructure development as part of government's focus on rural development and fighting poverty.

THE COMMUNITY BASED PUBLIC WORKS PROGRAMME (CBPWP)
By design it targets the poorest of the poor in rural areas changing the lives of people by creating assets that stimulate local economic and social development. This results in mainly temporary employment opportunities being created for those who were systematically pushed to the fringes of society.

Through this programme millions of people are empowered to take charge of their own destiny by freeing their potential. This programme therefore complements and supports government's Integrated and Sustainable Rural Development Strategy. Since 1998 we have delivered and are attending to 713 CBPWP projects in the identified development nodes, illustrating the role to be played in the ISRDS.

Having been voted by the ILO and CASE as the best poverty relief programme in Southern Africa, the CBPWP has been improved to ensure maximum impact where it is implemented.

While the programme has created a number of temporary jobs, the programme has now incorporated, in addition, creation of sustainable, self-reliant and viable community projects. Together with the Department of Agriculture we have embarked on reviving irrigation schemes that have become defunct in a number of provinces. In the revived schemes, communities will eventually be in charge of decision-making, will determine whether proceeds should be used for development of health facilities, upgrading of roads, etc. We are quite convinced the Community Production Centres will play an important role in the ISRDS. For the coming financial year we have set aside P15 million towards the further development of the CPCs.

Twenty three multi-purpose community centres have been provided for in the Public Works' budget, to provide a 'one stop' service centre within rural areas for government services to communities.

The 2000/2001 financial year has been a watershed year for Public Works. The media criticised a number of government departments, including my own, for not spending funds destined for the poorest of the poor. We responded and explained the reasons at the time, but we also committed ourselves positively to ensure that we spend the funds during this financial year.

It must be remembered that the funds we refer to go as far back as 1998/99,1999/2000. In addition, we had to spend funds allocated for 2000/2001 financial year. This means we had to spend budgets spanning three financial years. So, while the annual budget for CBPWP is P374 million, this financial year, we had to spend about P1 billion. The good news is that we will spend the whole amount in the current financial year.

From the expenditure of this money in the current financial year alone, we have created more than 20 000 jobs in rural areas, mainly in the three poorest provinces. Of these jobs, 46% went to women; 43% to the youth. As a result of the infrastructure that we have developed, Ndwedwe, a small little known village now qualifies for town status. This will attract local investment and create local jobs.

We also anticipate that with the demonstrable success of the CBPWP, we will be allocated, as we will request, more funds to focus on development of rural roads from the funds that are available for expenditure in infrastructure development, to further support ISPDS.

For years now, provinces and local authorities have been making requests to upgrade rural roads. Expanding investment in rural roads will provide the basis of local economic development in many parts of our rural areas.

Ladies and gentlemen, my department now stands ready to deliver on our infrastructure budget. No longer will you hear of underexpenditure in funds earmarked for poverty relief.

Let me share with you ……
SOME CBPWP ACHIEVEMENTS

· Rural infrastructure created
In the three years, 1998,1999 and 2000, the CBPWP implemented a total of 1 507 projects that delivered various infrastructure to rural communities. A broad breakdown of these are:
Bridges and roadworks 307
Water and sanitation 246
Agriculture related 196
Markets and taxi ranks, creches and schools 112
Classrooms and sport facilities 506
Community halls and centres 101
Other (refurbishments,etc) 39

· Job creation
By the end of December 2000, job creation progress according to budget for the previous three years were:
1998/99 29 360 people employed
37% women
39% youth
1999/00 11 356 people employed
44% women
45% youth
2000/01 19 230 people employed
46% women
43% youth.

In terms of gender targeting, this programme has outperformed the public sector in women participation.

· Rapid delivery/land rehabilitation projects
Projects for immediate impact on needy areas such as those hit by the floods were introduced. This generated immediate income to some of the poorest communities as well as created a subsistence skills base and acceleration of expenditure.

EXPENDITURE
Using cashflow based expenditure management, expenditure on the
CBPWP was accelerated to address previous backlogs during 2000.
At the end of December 2000, expenditure on the current budget
stood at R246 million (70,5%).

Public Works has demonstrated that the delivery mechanisms and financial management on the CBPWP is now effectively geared to successfully expend at a rate of P1 billion per annum (caught up on backlogs of previous two financial years). Should this rate of expenditure be continued, it is anticipated that the CBPWP will:
· Create approximately 60 000 temporary jobs through labour intensive delivery methods
· Yield a further 4 500 permanent jobs generated by the productive assets created
· Result in accredited technical training of about 3 000 people (5% of total number of people employed)
· Stimulate indirect employment opportunities.

BROAD OVERVIEW OF PLAN FOR 2001/2002
The 2001-2002 financial year programme is underway with the following already having been done, being done or planned.
· Business Plan that goes up to year 2004 submitted to Treasury
· Multi-year funded projects already under implementation
· Pest of the budget allocated to District Municipalities
· Induction workshop with the entire CBPWP fraternity held
· Capacity assessment of District Municipalities, especially new ones, underway.
· Capacity building programme planned
· Planned interactions with the ISRDS fraternity
· Planned co-operation with the Department of Sports and other Departments
· Detailed Achievements Management Schedule completed and discussed with the CBPWP fraternity.
· Process to make Provincial Departments of Public Works play a role of secretariat to the Provincial Co-ordinating Committees has been started.

In terms of the nodal points for rural development announced by the President in his State of the Nation address on 9 February 2001, the CBPWP is already running projects in all but the Kgalagadi Cross Boundary District Municipality and the Central Karoo District Municipality within the identified nodes.

COMMUNITY PRODUCTION CENTRES
Community Production Centres have largely involved the rehabilitation of productive infrastructure (such as irrigation schemes) that had become dysfunctional. The main objective of the CPCs is to create a vibrant rural economy that is driven through agriculture. This will provide direct employment, food and income to the farming communities, thereby alleviating poverty and opening wealth creation opportunities. Such centres are established with a view to promoting production activities for the market. It is expected the farmers will wholly own them with contracted support from the public and private sectors. This concept is an attempt by the Department of Public Works to increase the shod to long term impact of the anti-poverty intervention in the rural areas. Critical to the success of this concept is that the business operations that would take place in these centres are purely commercial and market linked.

The CPCs are a vital cog in the Government's Integrated and Sustainable Rural Development Programme (ISRDS). The basis for success of the CPCs approach lies in the effective co-ordination, partnership and the blending of the respective policies and strategies by the relevant government, private and community role-players. In addition to that the CPC depend on the accurate identification of lucrative marketing opportunities and the planning of production in accordance with such opportunities.

Public Works has joined forces with the Departments of Agriculture, Land Affairs, Water Affairs, District Municipalities and other stakeholders to implement the six CPCs:
· Eastern Cape; Lambasi and Ncora
· KwaZulu Natal: Makhathini Flats and Ndaya
· Northern Provinces Elandskraal and Upper Arable Olifant

These projects will directly and indirectly impact on the lives of more
than five hundred thousand (500 000) people.

MULTIPURPOSE COMMUNITY CENTRES
Multi Purpose Community Centres should not be confused with the ordinary multi purpose halls. They focus on the multi-service delivery and multi administration service provisions.

The key objective of the Multi-Purpose Community Centre is to
provide a 'one stop’ service centre within rural areas for government services to communities. The idea is to provide easy access to
service rendering facilities such as the post office, pension pay point, creche, library, clinic as well as administrative needs such as birth
and death certificates.

A total of 23 multipurpose centres was identified and put under implementation in year 2000 in the provinces of Eastern Cape, KwaZulu Natal, Mpumalanga, Northern Cape, Northern Province and Western Cape. The District Councils have taken to the MPCCs with enthusiasm. Many of the MPCCs were put on the multiyear budgeting cycle that the CBPWP has introduced.

Appendix 3:
SPEECH BY MINISTER OF WATER AFFAIRS AND FORESTRY, MR RONNIE KASRILS
14 February 2001

"Gradually, step by step, our country proceeds further away from its painful past. We, its citizens, who are very close to the coalface of change may not easily see the steady transformation that informs all aspects of our national life."

Thus began President Mbeki's address to this House last Friday.

In paying tribute to all our people, black and white who have contributed to this progress, the President has called to all our people across the colour line to dedicate this year to building unity in action for change.

I would like to address some aspects of this change, and of the remarkable level of delivery that goes with it. Yes, sometimes we at the coalface do not easily see the progress, although too often some are transfixed by the problems and obstacles -and maybe don't see further than the nose on their face.

The changes in our country in under seven years are impressive. The President has referred to the figures in housing, electricity connections, clean water delivery, land distribution and so on. He has also referred to the daunting backlog of poverty. He has referred to cholera and the need for a more vigorous extention of the sanitation system.

One is reminded of the long road of development in Europe and of their struggle to eliminate cholera and other disease.

In 1850 the cholera epidemic in London led to the realisation by the Victoria authorities of the need for water and sanitation services to eradicate such disease.
It took them many years - as it did in other European countries - before they had established basic services for their people and the necessary local government structures to ensure the sustainable maintenance and management of the system.

Even 50 years later, on the eve of the Anglo-Boer war, the British military authorities were alarmed at stunted, ill-nourished recruits, they were depending on. It took another 50 years, to post-war Europe for the modern basic services to emerge in most parts of that continent.

Madam Speaker, we are not going to take that long. The President's speech shows his government's commitment to speed up delivery.

What I am alluding to is that by comparison with, say Britain of the mid-nineteenth century, the richest and most powerful power of its time, our rate of progress is indeed phenomenal.

Since 1995 when our community water service programme began we have delivered safe water to almost seven million of our rural people. There are another seven million to reach!

When one looks at the extent of poverty and underdevelopment in the rural areas, and indeed our urban townships and informal settlements, the vast differences in wealth clearly demonstrates that we are a country of rich and poor.

The President's speech illustrated government's offensive against rural and urban poverty through its integrated rural development strategy and its urban renewal programme.

In practice this means, as the President once stated, that when a clinic or school is built, roads, water and electricity will be simultaneously provided.

The socio-economic benefits of providing affordable basic services are well recognised. The provision of water supply and sanitation in particular makes a direct contribution to the health and well being of the poor. It has a direct impact on women who remain mainly responsible for carrying water and using it to maintain a clean and healthy home.

We have seen that the introduction of charges for pure water at even a low rate has resulted in communities resorting to unsafe source. For these reasons the government has decided to ensure that poor households are given a basic supply of water free of charge.

Based on the policy framework for delivery, the Cabinet last month approved a programme of implementation of 6000 litres of safe water per household per month.


The date set for implementing the free minimum basic water policy by local government structures is 1 July 2001. I need to stress that the current payment arrangements remain in place until local councils inform consumers of the specific date of implementation in specific areas.

Free basic water is to be funded using a combination of the equitable share of revenue of local government and internal cross-subsidies from appropriately structured water tariffs in a manner which best reflects the specific situation in the respective local government area.

The implementation programme has three components:

· The preparation of detailed guidelines for local government;
· The establishment of dedicated support teams for local government; and
· The establishment of mechanisms to finance and implement the required metering and billing of water supplies.

The President indicated in his speech that this year will see an unprecedented acceleration of the delivery of water and sanitation. In a clear vote of confidence in the South African Government, the European Union has contributed R500-million grant over the next three years for the water and sanitation services.

The President made special reference in his speech to the provision of sanitation which has gone much slower than what we would have liked. Recent studies indicate that 3,5 million mainly rural households have no access to sanitation, i.e. 21 million people.

Part of the problem in delivering sanitation has been the current demand-led approach, which is dependent on individual households requesting a R600 grant to build latrines. Although this approach is based on international best practice, we have found the going very slow and only since the cholera outbreak has the demand increased. It is for this reason that an urgent review of the Government's sanitation policy is underway and we are committed to focusing far more resources to accelerate the delivery of sanitation.

The Cabinet has approved an integrated inter-departmental approach to sanitation linking water supply, housing, local government, health and education.

Until now, the sanitation has been supplied by six government departments.

In terms of the Cabinet decision, the Department of Water Affairs and Forestry will lead the inter-departmental approach within the framework of the Municipal Infrastructure program.
The need for joint provision of services has been reinforced by the tragedy of the cholera outbreak. Since 1994 we have provided 1,2 million people in KwaZulWNatal with access to safe water. It goes without saying that without these people having been given water and sanitation, the epidemic would have been much worse.

Over the next three years, the government will spend R650-million on providing water and sanitation to KwaZuluINatal alone.

Against this background, it is essential to understand that the Government has mobilised its resources to contain the epidemic as soon as the first cases were reported in KwaZuluINatal.

I wish to wholeheartedly congratulate the Minister and the Department of Health on the handling of the epidemic. It is largely due to their efforts that the fatality rate in South Africa - as pointed out by the World Health Organisation - is well below the international fatality rate in cholera epidemics.

The Government regards the epidemic as a serious matter and is applying all the measures it would in the event of a disaster precisely to avoid it from becoming a national disaster. In order to achieve this goal, the National Disaster Management Centre has been mobilised in the Government's fight against the epidemic.

The Department of Water Affairs and Forestry recognises that the provision of adequate water and sanitation is one of the most critical components in wiping out cholera which is endemic in KwaZululNatal.

It is only through working together - unity in action that we understand concerns raised by our critics. Two weeks ago, the columnist Max du Preez made some useful suggestions which we have already taken on board.

With the assistance of the Ministry of Land Affairs and Agriculture and General Constand Viljoen, contact has been made with Agri South Africa. In the true spirit of unity in action, they are ready to help the government combating the cholera epidemic by distributing bleach and educational health material, setting up temporary water tanks and providing emergency water.

Also in the spirit of unity in action we pay tribute to Charl Senekal from Mkhuze, who has spent R20-million to provide not only irrigation for his sugar estate but also life-giving water to 190 000 people living in Mkhuze and the Bethesda Hospital at Umbombo.

We thank the heroic doctors and health workers for their selfless work around the clock to cholera victims. We are encouraged by the many people in KwaZulu/Natal who are working with my department in erecting pit latrines - 9000 in 9 weeks serving 100,000 people and another 100,000 learners at 200 schools.

As the President pointed out, the success of the government's plan of action will also depended on the extent to which people can be mobilised so that they become active participants in the upliftment of their own communities.

Let us reiterate the President's call for all South Africans to dedicate this year to building unity in action for change. That is the way to bridge the rural divide and forge the unity of all our people.

Addendum
MEDIA STATEMENT BY MINISTER OF WATER AFFAIRS & FORESTRY
14 February 2001

The Cabinet has approved an implementation plan for 6 000 litres of free water per household per month as part of the government's integrated rural development strategy and urban renewal programme. The date for implementation by local government structures is 1 July this year. This date coincides with the start of the first financial year of our new local councils.

I must stress that consumers should continue to pay for water until they are informed by their local councils on the actual date of implementation in their respective areas.

Free basic water is to be funded using a combination of the equitable share of revenue of local government and internal cross-subsidies from appropriately structured water tariffs in a manner which best reflects the specific situation in the respective local government area.

The Department of Water Affairs and Forestry, in conjunction with the Department of Provincial and Local Government and SALGA has put in place a support programme for local government. A series of workshops with the newly elected local councils has already begun to amplify the details of the free basic water policy. The support programme has three components:

· The preparation of detailed guidelines for local government;
· The establishment of dedicated support teams for local government; and
· The establishment of mechanisms to finance and implement the required metering and billing of water supplies.


I wish to point out that the department's survey of 97 local authorities have found that 21 local councils are already offering some form of free water:

· 10 provide between 5 000 litres and 8 000 litres free water to individual metered households. These include Humansdorp, DeWetsdorp, Kokstad, Durban, Kenhardt and Prieska.
The balance provide free services through communal standpipes and similar facilities.

We cannot provide free water until the basic infrastructure is in place. We are, however, about to reach the seven million target with more than a million people likely to be added each year for the next three years of this MTEF period. In the process we have created 360 000 temporary jobs.

As the President indicated in his Parliamentary address, this year will see an unprecedented acceleration of the delivery of water and sanitation. In a clear vote of confidence in the South African Government, the European Union has contributed R500-million grant over the next three years for the water and sanitation services. The grant forms part of a R 2, 2-billion programme which will provide water to 2,4 million people in KwaZulu/Natal, the Eastern Cape and the Northern Province.

These funds will also provide 300 000 people with access to sanitation and reach 2,4 million people with health and hygienic education in the three provinces.


These three provinces - identified in last year's report on poverty as being the poorest of the poor - are targeted in a sustained offensive to eradicate poverty. The capital programme will also continue in other provinces with allocations made in terms of the basic water supply backlog.

MEDIA STATEMENT BY THE MINISTER OF WATER AFFAIRS & FORESTRY
I have instructed the Department of Water Affairs and Forestry to review progress of current internal investigations and other management initiatives by the Umgeni Water Board to determine whether an external investigation into the Board's affairs is required.

This follows recent press reports on criticisms from organised labour and concerned employees about alleged management abuse of travel facilities and related matters. It also reflects concerns about Umgeni Water's treasury management arrangements as welt as the need to ring fence the commercial activities at the Umgeni's KwaZulu/Natal consumer.

The appointment last year of new Chief Executive Mr NC Molepo has already gone a long way to addressing the concerns that have been expressed. However, I owe it to the public in Umgeni Water's supply area to ensure that no new problems are emerging.

Most of the issues will be addressed by the normal departmental review of Umgeni Water's business plan, annual report and policy statement later this month and by the Board itself.

I have however, asked my Director-General to advise me as to whether any of the matters which have been raised might require me to supplement these measures.

Contact: Thami Mchunu 082 806 6575