July 2015 Health • Rural Development • Employment • Safety & Security • Education1 Vuk’uzenzele FREEFREE Brought to you by Government Communications (GCIS) July 2015 NEWSFLASH: Basic IDC boosts Look out for government job Education local cattle adverts in all upcoming outlines farmers editions of Vuk'uzenzele spending starting from August priorities P4 P7 Municipalities getting it right, improving services there were no errors on its financial reporting; Amukelani Chauke they met their service delivery targets based on their promises; and they complied with More and more municipa- legislation when handling public funds. An ‘unqualified audit with findings’ means lities are managing their a municipality was able to present financial statements with no errors, but failed to meet finances better, which is all their targets and did not set clear targets or indicate which legislation they used to translating into better service manage funds. The results showed that 22 per cent were delivery for communities. ‘qualified with findings’ in the year under review, compared to 28 per cent in 2012/13 uditor-General Kimi Makwetu re- financial year. cently announced a comprehensive This means that municipalities were unable report on audits that were done on to produce reliable financial statements or Amunicipalities and municipal enti- comply with financial management legisla- ties for the financial year 2013/14. tion. The report showed that the number of mu- Sixteen per cent of municipalities and mu- nicipalities that improved their submission nicipal entities obtained ‘disclaimers with of financial statements had increased notably findings’. This means the municipality’s across several provinces. financial records were so bad that the Auditor- The Auditor-General said that the total num- General could not even express an opinion. ber of municipalities and municipal entities with unqualified audits went up from 30 in HOW PROVINCES FARED the 2012/ 13 financial year to 58 in 2013/14, Eastern Cape: The Sarah Baartman Dis- which is made up of 40 (14 per cent) of the trict and Senqu Municipality improved Auditor-General Kimi Makwetu said the best performing municipalities have improved lives. 268 municipalities and 18 (32 per cent) of the to unqualified audits, while the Man- 57 municipal entities. dela Bay Development Agency retained its Makwetu said he was impressed with the Gauteng and the Eastern Cape Province. parts of our country, are doing to have a posi- unqualified audit. work of the best performing municipalities as “The political and administrative leader- tive impact on their communities,” he said. they had improved the lives of people. ship accompanied me and my team on visits Makwetu added that the municipalities that Gauteng: Ekurhuleni Metro, Midvaal, After completing the audits, he visited sev- to some key projects, where they provided have shown that good governance controls Mogale City, Brakpan Bus Company, Joburg eral municipalities that did well to congratu- us with detailed information on how these can be effectively used to improve the lives of City Theatres, Ekurhuleni Development late them. While he was there, he visited sev- projects are managed for the benefit of local people and that the political and administra- Company, Johannesburg Roads Agency, eral municipal projects to see how improved communities. tive leadership was starting to set the right Lethabong Housing Institute, Pharoe Park results impacted on service delivery in the “I was impressed by the sterling work that tone and leading by example. Housing Company and Germiston Phase KwaZulu-Natal, Western Cape, Mpumalanga, these municipalities, some in the remotest II Housing Company – all got unqualified AUDIT RESULTS WELCOMED audits. Cooperative Governance and Traditional The Sedibeng District, Joburg Market and Affairs Minister Pravin Gordhan said the im- Johannesburg Social Housing Company proved municipal audit results showed that retained their unqualified audits. Honouring Nelson Mandela government prioritised good governance and service delivery. KwaZulu-Natal: Dannhauser, Emnam- Sello Hatang What does this mean in practice for you “The report points to a steady trend towards bithi/ Ladysmith, Ezinqoleni, ICC Durban, and me? By way of example, this month good governance and sound financial man- Ilembe District, Mandeni, Richmond, In 2009 the United Nations a group of volunteers from the public agement. uMgungundlovu District, Umzumbe, sector, private companies and individual “This reinforces more efficient and account- Zululand District, Ilembe Management General Assembly declared change makers (including myself) will able basic service delivery in line with the Development Enterprise and Ugu South be engaged in the Kilimanjaro Executive ‘Back to Basics’ approach,” he said. Coast Tourism received improved (unquali- Madiba’s birthday on 18 July as Challenge, a climb to the top of Africa’s The Minister launched the “Back to Basics” fied audits). highest mountain, with the plan to sum- strategy in September 2014 as government Nelson Mandela International mit on July 18. took the approach of ensuring that municipali- Northern Cape: The Frances Baard Dis- We are also tackling this climb as a ties get basic services right, as well as listen trict was the only one that improved to an Day. community project on behalf of the Arch- to concerns from the public more effectively. unqualified audit, while the ZF Mgcawu bishop Tutu Fellowship Programme run District retained its unqualified audit. ince then, Mandela Day has become a by the African Leadership Institute. YEARS OF STEADY call to action to change the world for Preparing for this challenge has given IMPROVEMENT Mpumalanga: The Enhlanzeni District the better through the kind of service me ample time to think about the true Forty-one per cent of all auditees received and Steve Tshwete Municipality retained Sand leadership championed by Mr meaning of public service. unqualified audits audits with findings in the their unqualified audits. Mandela during his 67 years of service, not It’s been tough to find the time to train year under review, compared to 40 per cent in No municipalities or entities achieved un- just on a single day of the year but through 2012/13 financial year. qualified audits in the Free State, Limpopo ongoing initiatives. Continued on page 2 A unqualified audit with no findings means a and North West. municipality’s books were in order and that Vuk’uzenzeleVuk’uzenzele is is FREE . but. but please please pass pass it on it whenon when you you are aredone done 2 Vuk’uzenzele July 2015 GENERAL IDC to drive economic development Amukelani Chauke potential and talent pool of the economy. He said South Africa needed to achieve sus- Economic Development tainable and inclusive growth, and that the funding would be made available on conces- Minister Ebrahim Patel sional terms. “Aside from black industrialists, there is of has called on aspiring course a compelling need to bring more black South Africans into the economy. entrepreneurs to take “There are also targeted groups – young peo- ple, women – they have not been sufficiently advantage of the R23 billion brought into the productive activities. So the IDC will make available R9 billion in total – that has been set aside over R4,5 billion for women, R4,5 billion for youth,” she said. the next five years to fund The Minister said the funding would be in “new players”. the form of loans or equities. GOOD NEWS FOR SMALL TOWN- inister Patel said the funding, SHIP ENTERPRISES, SPAZA SHOPS made available by the Industrial The Minister said during the current financial Development Corporation (IDC) year, the Competition Commission would Maims to transform the economy conduct an inquiry to see how smaller busi- and create jobs as government makes a big nesses in the formal and informal economy can push to industrialise the economy. be supported. He said the inquiry would also HUNDREDS OF The Minister said this when he recently tabled seek ways in which smaller players could be JOBS CREATED his department’s Budget Vote speech in the incorporated into this lucrative sector. The Industrical Development Corporation will Andries Motseke a worker National Assembly. “The Competition Commission will be make R100 billion available to fund industrial whose towel-making factory He said the fund would contribute towards launching a market inquiry into the retail sec- development. has grown and now employs 81 industrialisation and that it would go a long tor, looking at how we can bring more black more people than a year ago; way in eradicating inequality and poverty. South Africans, more small businesses, into the Commission has declared as Africa Day – the Rachmat Thomas, a black wom- The Minister urged aspiring black industrial- retail sector. Department of Economic Development con- an who co-owns a shoe factory ists to come up with proposals in the produc- “It will examine amongst others, the tenancy vened a symposium of investors, workers, that doubled its employment tive sectors of the economy where they can set arrangements in shopping malls, the growth of intellectuals and public officials with the Uni- in the past six years and now up industries. township enterprises, small shops, spaza shops versity of the Witwatersrand and the Industrial employs 300 people; “The IDC is committing R100 billion over five and so on, and it is intended to ensure that we Development Corporation. A R8 billion solar plant launched years to industrial development. have