Wednesday, October 29, 2008
SPEECH BY HELEN ZILLE MAYOR OF CAPE TOWN
MEDIA RELEASE
NO. 595/2008
29 OCTOBER 2008
SPEECH BY HELEN ZILLE MAYOR OF CAPE TOWN
COUNCIL MEETING CAPE TOWN CIVIC CENTRE 29 OCTOBER 2008, 10H00
Mr. Speaker, I would like to welcome councillors, officials, members of the media and
members of the public to today’s meeting.
Before we turn our attention to the agenda, there are several issues affecting the City
that I would like to raise.
Firstly, we are reaching the end of our programme to address the aftermath of May’s
outbreaks of xenophobic violence, a programme which we have implemented in
partnership with the National and Provincial governments, the United Nations and
NGOs.
Over the past 5 months, the initial total of people seeking shelter in five safety sites,
15 community halls and other private shelters, has dropped from around 20 000 to
around 1 100, with the majority being single men.
There are no remaining displaced people in community halls, and we have closed the
safety sites at Soetwater, Silwerstroom, Harmony Park and Youngsfield military base.
The remaining site, Blue Waters, is scheduled to close this Friday, 31 October.
There are still approximately 140 people staying in Youngsfield who either need to be
reintegrated into the communities of Cape Town or repatriated. There were 608 when
the closure process started a few days ago.
Some of the remaining group in Youngsfield entered the site in the past week hoping
for financial assistance. Most of the people who have been there for longer have
been given many opportunities to relocate and have declined the assistance.
Youngsfield is officially de-registered.This means government will not supply food
and other services except those services that relate to health such as sanitation.
Food by volunteer groups will be allowed.
Some media reports said that food brought by volunteers was being turned away at
Youngsfield.
While our site management is not aware of any cases where this took place, let me
state that we will not deny people food and will take care of children.
Once Blue Waters is closed, the provision of food, shelter and other services to
displaced people by government will cease.
The bulk of the remaining displaced people have accepted help from the United
Nations High Commission for Refugees (UNHCR) and the International Organisation
for Migration (IOM) to repatriate or relocate to communities.
This includes repatriation or reintegration assistance, in the form of rental grants from
the UNHCR, food parcels, and transport to communities. A minority has refused all
assistance.
Since the repatriation process is a very lengthy one, those individuals who wish to be
repatriated, will first be reintegrated into local communities, and the UNHCR will
process their repatriation applications from there.
The fact that the last of the sites will close should come as no surprise.
Dates for closure have been communicated repeatedly in personal meetings with
people staying in the sites, in pamphlets and through news media.
We have also made it clear from the outset that the safety sites were never designed
as a permanent solution.
We do not have the resources or capacity to keep them open indefinitely.
We need to be fair and equitable when it comes to the provision of municipal
services, especially in a city where so many residents, both South Africans and
foreign nationals, lack basic services.
The closure of the safety sites marks the end of a very challenging episode in our city
and in other parts of the country.
I thank the city officials, Provincial Government, the UNHCR, and the NGOs who
worked constructively to address this situation, especially HDI Support, Mustadafin
Foundation, the Salvation Army, the South African Red Cross Society and the South
African National Zakah Fund.
Speaker, a second matter I wish to raise here is our progress with preparations for
the FIFA 2010 Soccer World Cup.
FIFA President Sepp Blatter, together with a formal technical inspection team from
FIFA and the Local Organising Committee recently explored every facet of our City’s
preparations.
They pronounced Cape Town very well organized.
On 8 November President Kgalema Mothlanthe is also scheduled to come to Cape
Town to be briefed on the City’s readiness for 2010 and to visit Green Point stadium.
We will be able to report that the stadium is on schedule for completion by 14
December 2009.
The concrete works will be completed at the end of October.
Following this, the main tasks that remain include the completion of the roof and
façade, the laying of the grass pitch, and the installation of seating and fittings.
Work on the podium and the precinct is underway and on schedule.
The compression beams of the roof are going up at a steady rate. More than two
dozen are already resting on the 72 columns.
Two grass pitches are currently being grown in Stellenbosch to FIFA’s specification.
Two members of the City’s 2010 Project Team have recently returned from visits to
specialist contractors in Germany and Poland, where components of the roof and
façade are being manufactured.
They have reported that the work is proceeding on schedule, and some of the items
are already in the process of being shipped to Cape Town.
Virtually all the sub-contracts for the stadium will have been awarded by the end of
this year, and negotiations with the preferred bidder for the operating contract (a
consortium of Stade de France and Sail Group) are continuing.
Apart from the stadium itself, reconstruction of Green Point common, the golf course
and the local roads are all expected to commence shortly.
In addition, the City’s projects on Granger Bay Boulevard and Hospital Bend are on
schedule.
The re-construction of Koeberg Interchange and Table Bay Boulevard has
commenced, and we understand from Province that these projects will be finished by
March 2010.
I am informed that the preparations of the various state owned enterprises in Cape
Town are also on track. This includes the upgrading of Cape Town international
airport by ACSA, upgrading of certain commuter rail stations and upgrading of rolling
stock.
Being a host city has brought us national investments in infrastructure well in excess
of R10 billion.
While the emphasis has previously been on the stadium and the major infrastructure
upgrades, our focus has now widened to include the operational aspects we need to
prepare for the event itself.
Our planning for the Fan Park, Fan Mile, and Public Viewing Sites is reaching
completion and we are now entering the implementation phase, in which we will be
putting out tenders for service providers.
We are working closely with the SAPS on the safety and security aspects.
The disaster management and emergency services have been reviewed and
adequate resources will be made available to ensure that 2010 will be a safe and
successful event.
On 4 December 2009 Cape Town will host the Final Draw for 2010, in which we
expect major international television coverage, and an influx of the world’s soccer
fraternity.
I am happy to say that we are already seeing some of the benefits of our investments
in being a host city. Apart from the fixed investments we have gained across the
metro, we have also created a number of job and training opportunities for our
citizens.
In response to Councillor Mnqasela’s question in the previous council meeting, I can
inform this council that the main contractors on site are employing 1271 people, while
subcontractors are employing 872, which means a total of 2143 jobs have been
created. Of these, 92% have benefited disadvantaged individuals, while 57% of all
procurements in the project are benefiting BEE concerns. In addition, a total of 1179
employees have received accredited training on site, which will benefit them in their
future careers.
The City’s implementation of Phase 1a of the Integrated Rapid Transit system in
preparation for 2010 will also have significant benefits for our citizens in the long run.
In this regard, I would like to take this opportunity to commend the City’ officials and
councillors for the progress they are making, and for the other important work they
have been doing in Transport Month. During the past few weeks the City has
launched the Helderberg Park and Ride facility, opened the Claremont Interchange,
hosted the International Accident Reconstruction and Investigation Conference, and
on Friday we will have a sod-turning for the new R130 million Transport Management
Centre in Goodwood.
Speaker, the last matter I would like to raise here before turning to today’s agenda is
the first anniversary of Deputy Mayor Grant Haskin’s term in office. I would like to
congratulate him on this milestone.
Speaker, turning to today’s agenda, there are a number of items that serve our IDP
focus on developing a solid platform of urban infrastructure and services that will
encourage investment and job creation.
Firstly, council will be asked to expedite our Municipal Fibre Optic project by
rescinding the condition that we reach a funding agreement with the Council for
Scientific and Industrial Research (CSIR) before proceeding. We need to move
forward with this project without further delay in order to address high
telecommunications costs and connectivity problems in the City. Negotiations with
the CSIR have not yet been concluded, but the viability of the R120 million first phase
is not reliant on the CSIR portion of the funding.
Today council will also be asked to support economic growth and job creation in
Atlantis by approving the sale of 11 out of 22 erven to 8 new and existing
industrialists for just over R16 million. The industrialists put in successful bids for the
land on the basis of either expanding or setting up new operations in the area.
In February last year we carried out a similar sale of council property, which resulted
in the creation of about 2000 job opportunities.
We intend to continue this initiative with the remaining plots of industrial land in the
area. It is impossible to overstate the importance of encouraging investment in
Atlantis, where poverty and unemployment are worsened by distance from the main
commercial and industrial regions of Cape Town.
We will also have the opportunity today to start the process of leasing two key
municipal properties for the benefit of economic and social development in Cape
Town. The first of these is Beaufort House, where we would like to see the
establishment of an NGO management centre. This has the potential to strengthen
the organisational capacity of our valued NGO sector. The second decision relates to
the transformation of the City Hall into a centre of arts and culture for all by a Section
21 company.
It is unfortunate, however, that from now on important initiatives like the transfer of
industrial land, housing land and the leasing of large municipal properties will be
delayed as a result of the Municipal Asset Transfer Regulations, introduced by the
Minister of Finance with effect from 1 September.
The new regulations state that where the value of a local government’s capital asset
is in excess of R50 million and the municipality wishes to dispose of it, a 60 day
public participation process must be conducted. This also applies to assets valued
over R10 million where the proposed lease is over 3 years.
Today council will have the opportunity to consider an impact analysis of the new
regulations, which create a significant layer of red tape for the city, especially when it
comes to trying to promote public-private partnerships and economic development.
These regulations may be within the Minister’s legal powers to apply.
But they are contrary to efficient local governance, and add to the already excessive
legislative burden on municipalities created by the MFMA in its current form,
especially when it comes to urgent matters like housing.
Together with this item, council will also be asked to support a recommendation that
we keep the definition of ‘high value assets’ at a market value of up to R50 million, so
as to reduce the number of cases where this extra layer of red tape has to be
applied. At the same time, we also recommend that council grant the City Manager
the power to authorise public participation processes for proposed leases of over 3
years for assets under R10 million, and for assets over R10 m for less than 3 years.
This will ensure that less items need to be queued for full council meetings.
Speaker, part of this government’s programme of infrastructure led economic growth
also includes making investments and providing services that help disadvantaged
communities find ways into the formal economy.
Our Informal Settlement Upgrade Master Plan is a key part of this. It aims to give
residents easy access to services, and create a cleaner and safer environment so
that they can focus on generating an income.
This Upgrade programme will be given a boost today if this council supports the
electrification of seven informal settlements in Eskom supply areas, including Sites C
and B in Khayelitsha, Phola Park, Du Noon, Monwabisi Park, Crossroads and Boys
Town.
These are areas which national policy has previously excluded from electricity
provision.
If council gives the guarantee today that no mass relocation of residents in these
communities will be carried out, Eskom will be able to approach the Department of
Minerals and Energy for funds which were previously reserved for formal settlements
under the Integrated National Electrification Programme.
Our programme to improve conditions in informal areas will also be supported by
today’s item requesting a further R6 million be added to the R15 million already
allocated for the Khayelithsha Town II Clinic.
This will ensure that the building will have adequate capacity to serve demand in the
area. The facility will improve delivery of basic health care, and help us in our
programme to make ARVs, TB treatment and other medical services accessible to
everyone in Cape Town.
In this regard I should also mention that today council will have the opportunity to
officially accept the donation of R800 000 worth of extensions to the Mayenzeke
Clinic by Medecins Sans Frontieres. I would like to personally thank MSF for their
generous support to the community.
Speaker, during this period of global economic turbulence, and national political
upheaval, our programme of infrastructure led economic growth is especially
important.
We must show, through improved services and wise fixed investments that our local
government remains a stable institution which investors and citizens can trust and
rely upon.
We saw the negative reaction that Finance Minister Trevor Manuel’s announced
resignation triggered in financial markets just over a month ago. This is because he
has turned our finance ministry and its organs into a solid institution that investors
trust.
We need to ensure that the City of Cape Town becomes a similar basis for investor
confidence in the region.
In this regard, I am happy to say our quarterly financial report to be tabled in council
today reflects that we are making good progress with the year’s spending on
infrastructure projects.
For the first quarter of this financial year, we have spent 98% of the allocated capital
budget, and 92% of the allocated operating budget.
In some directorates, our capital expenditure on key projects is way ahead of
schedule, particularly in the case of housing, service delivery integration and utility
services.
At the same time, our operating costs are remaining within budget in nearly every
directorate. This is a positive sign that we are continuing to accelerate service
delivery, and doing so efficiently.
This view is also supported by the positive budget assessment we have received
from National Treasury, which is included in today’s agenda for noting.
Treasury observed that our budget document and IDP have ‘improved significantly’.
The report also welcomes our performance management system and its direct link to
the implementation of our policies, stating that ‘the Corporate Scorecard that the
municipality applies to link its total budget with the IDP strategic themes and priorities
is commendable”.
It acknowledges the value of our drive to build capacity “in critical areas such as
project management, disaster management and metro police”.
And it praises our improved financial stability and reduced budgetary reliance on
central government grants, from 25% last year to 19% this year.
In support of ongoing good governance, we will also be considering a draft updated
Fraud Prevention Policy and Fraud Response Plan in this meeting.
The Policy clearly defines for all staff and councillors what is legally regarded as
fraud, and explains the roles and responsibilities of councillors, line managers,
internal audit and other city employees in preventing fraud.
It also offers guidance on best practices in financial and asset management and
other steps to prevent corruption.
The Fraud Response Plan is a practical guide for staff and councillors on the steps
(including disciplinary and criminal procedures) that must be followed by
management and staff where fraud cases are detected.
I urge everyone here to familiarise themselves with these documents, and would like
to remind everyone of our Fraud and Corruption Hotline number, which allows you to
anonymously provide information on suspected abuse of council funds or assets. The
number is 0800 32 31 30.
So far we have come a long way in combating corruption.
The City is currently awaiting the outcome of police investigations into around R75
million worth of fraudulent activities which we have detected and acted against since
coming to office in 2006.
It is frustrating that many of these cases have been dragging on for over two years
without being concluded.
We are also unsure what has happened to City cases which were being handled by
the Directorate of Special Operations, or the Scorpions, which the ANC disbanded by
a vote last week in Parliament.
Our efforts to create a cleaner city administration are also being undermined by the
Western Cape Minister for Local Government, Pierre Uys, who has refused, without
giving reasons, to implement the decision of this council to remove Councillor Badih
Chaaban from his seat.
Council made this recommendation over a year ago, after a multi-party disciplinary
committee, guided and overseen by independent legal experts, found him guilty of six
breaches of the Code of Conduct for Councillors.
These include “three counts of having enticed colleague councillors to resign from
their current parties in exchange for gratification in the form of offering leadership
positions, guaranteeing a further two terms as a councillor, offering to assist with their
future business ventures and, in one case, handing over an amount of cash”.
He was also found guilty of “making derogatory and injurious statements about the
mayor, personally, and the office of the Mayor of Cape Town”, of “making similar
remarks about Ms. Patricia de Lille”, and of “making defamatory and racist
statements against Black Africans, Coloured Persons and persons of the Jewish
faith”.
Councillor Chaaban displayed no remorse during the process, instead refusing to
attend or recognise council’s disciplinary committee.
Given the gravity of these charges, and the fact that he had already been found guilty
of misconduct in the past, we can only conclude that Minister Uys is protecting Cllr
Chaaban on behalf of the ANC.
This is especially obvious when the MEC’s foot-dragging is compared to the haste
with which the ANC is willing to axe office bearers in its own party who fall foul of the
ruling clique.
The Minister’s decision not to provide reasons is clearly aimed at buying him time.
He will be required to give us reasons after we formally requested them in terms of
the Promotion of Administrative Justice Act. But only within 90 days.
If he does not offer us very good reasons, we will take his decision on review in the
courts.
We must be able to act decisively against corruption or maladministration wherever it
occurs.
This, together with sensible financial management and efficient services, is one of
the best ways we can inspire trust and confidence in the City of Cape Town.
I thank you.
END
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