Inaugural Budget Vote Speech for Free Strate Premier

Free State Provincial Budget Vote 2023/24 by Premier Mxolisi Dukwana

2023/24 BUDGET VOTE SUMMARY IN NUMBERS

• R108 472 million: financial year budget for Programme 1.

• R293 413 million: Programme 2’s allocated budget for the financial year.

• R76 653 million: the financial year budget allocation for Programme 3.

• R157 269 million: Programme 4’s financial year budget allocation.

• R76 million: raised from merSETA to settle student debt at local TVET colleges and universities.

• 2 035 officials received training from the Free State Training and Development Institute.

• 115 officials are enrolled for the National Diploma in Public Administration NQF Level 6.

• 22 Bursary Programme beneficiaries are studying at universities abroad.

• 576 students at local institutions of higher learning are supported by the Bursary Programme.

• 25 major infrastructure projects are registered with Infrastructure South Africa.

• R173 billion: the estimated value of the major infrastructure projects.

• 4 389 calls were made to the Presidential Hotline.

• 4 315 of the calls received by the Presidential Hotline were resolved

Premier Mxolisi Dukwana, who was sworn in as the seventh premier of Free State Province in February 2023, presented his first Budget Vote speech for the 2023/24 financial year in May. He focused on service delivery, capacity building, infrastructure investment, repositioning the province as an economic powerhouse, developing partnerships and alignment with other spheres of government, community development and, most importantly, adopting a zero-tolerance approach to corruption. Each of these areas will be addressed by one of the province’s four programmes.

In his opening remarks, Premier Dukwana said he was honoured to present his first budget vote speech as premier of the province. “This budget vote gives us an opportunity to outline our planned priorities for the year ahead and solicit the blessings of the Free State community. It enables the provincial government to inform its citizens about how public resources will be used to fulfil its mandate of building a better life for all.”

Mandated to deliver now, despite the challenges

“Today is better than yesterday, and

tomorrow will certainly be better. Our people have access to running water, electricity, dignified housing, free education and access to professional jobs that were previously a preserve of the few,” Dukwana said.

Despite these successes, he cautioned that challenges, such as unemployment, poverty and inequality, lie ahead. “However,” he said, “we will never allow challenges to define our circumstances or extinguish our ability to dream. Instead, they should inspire us to imagine our province anew. Our mandate is to deliver and deliver now.” >

“Focusing on what we need to deliver, when we deliver and how we deliver is the strategic leadership function of the Office of the Premier. This office is responsible for directing the integrated planning, coordination, governance, implementation, monitoring and evaluation for the Free State Provincial Government,” Dukwana said, adding that when it is purposeful, value-driven and visionary, it will lead the province towards good governance and improved service delivery.

An effective, efficient government

Dukwana then unpacked the first of the province’s programmes, designed to ensure transparent, accountable, effective and efficient government and the management of resource allocation. He said that the Director-General of the Office of the Premier will oversee and drive integrated planning, coordination, implementation and monitoring of provincial government projects and programmes to ensure functional, integrated delivery.

“We will improve efforts to enhance institutional relationships to create synergy built on integration, coordination and partnerships. This will lessen policy incompatibilities and fragmentation,” he explained.

“The Medium-Term Strategic Framework priorities and Executive Council Makgotla resolutions will continue to shape every aspect of our clusters’ work to drive integrated alignment and implementation. This year, our clusters will be revisited to mirror government structural arrangements and priorities. The focus will be on their functionality to foster integrated planning and accountability between the three spheres,” Dukwana added.

A hard line on corruption

“Corruption has overshadowed our capacity to do good and created a spiritual, moral and ethical dilemma for our people," Dukwana said. "We are called to confront and defeat these challenges." Reiterating the Office of the Premier’s intention to obtain an unqualified audit opinion, Dukwana said: “These are trying times of austerity measures. Doing more with less will now be the new normal. We will prioritise reallocation of funds to more pressing needs. Sound financial management will be the norm. The days of financial wastage, excess and transgressions are over. We are implementing the Audit Action Plans in our quest for an unqualified audit opinion.”

He pointed out that the focus on financial management also involves fighting malfeasance and corruption in government as “corruption is not a victimless crime; it defers hopes and dreams of our people. It erodes trust and confidence in the provincial government.”

He pledged that there would be zero tolerance for malfeasance and corruption, and no cover-ups would be permitted. He advised that all senior managers and officials responsible for financial management are being vetted by the South African Security Agency. “This will instill professionalism, trust and integrity in those entrusted with the responsibilities of managing public funds in government.”

Dukwana also addressed the issue of conflict, saying that if left unchecked, it would enable corruption. He confirmed that his office is working closely with the Public Service Commission to ensure that there is maximum compliance with the financial disclosure framework. He added that lifestyle audits are now compulsory for public servants, and government officials are barred from doing business with the state.

Oversight of financial reporting, internal control, audits, risk management, ethics, disclosures, and fraud prevention will remain the responsibility of the independent Shared Audit Committee. To successfully fulfil these responsibilities that fall under Programme 1, a R108 472 million budget has been allocated for the financial year.

Capacity building to ensure efficiency

Service delivery protests, maladministration, and socio-economic maladies result from lack of capacity. Programme 2’s role is to build the necessary institutional capacity to ensure effective, efficient, responsive and accountable government and development of the province. Skills development will help address the challenges of unemployment, poverty and inequity, Dukwana said.

“The Free State Training and Development Institute has provided training to 2 035 officials on 119 courses, and 37 part-time bursaries were awarded to officials,” the premier explained.

“Partnerships are an important source of our education investment. Of the 50 officials enrolled for the National Diploma in Public Administration, 29 have obtained their qualifications through the Recognition of Prior Learning Programme (RPL) funded by PSETA.

“We worked with the National School of Government to train 165 interns and 350 officials on various financial and leadership programmes, including Citizen-Centred Service Delivery, Supply Chain Management and Programme and Project Management,” Dukwana said. He added that 115 officials are enrolled for the National Diploma in Public Administration NQF Level 6, and 20 officials will be registered for the Advanced Diploma in Public Administration NQF Level 7.

The province’s Bursary Programme continues to unlock the doors of learning for many young people, supporting some 598 students with bursaries to study at universities abroad and local institutions of higher learning.

Over R76 million was leveraged from the manufacturing, engineering and related services SETA (merSETA) to settle the debt of 1 500 students at local TVET colleges and universities.

All these initiatives form part of the province’s contribution to the National Skills Development Plan, which seeks to ensure the availability of adequate and appropriate skills that contribute to growth and development.

The province’s Human Resource Development Strategy aims to develop institutional synergies and ignite a culture of lifelong learning in government.

A review of the organisational structure to reposition the provincial government as effective, efficient and excellent will be implemented upon conclusion of the consultation processes. This restructuring will align functions and skills, instill professionalism and ethical conduct and motivate officials. All departments are also being assisted to restructure to ensure a purpose-led service-delivery provincial government.

Technology, legal matters and communication

Addressing technology, the premier said that the province would explore shared ICT services and infrastructure to improve efficiency and effectiveness. It will roll out the Virtual Private Network, Cloud Services and Telephony System to optimise resources, processes, operations and approaches using the transversal projects initiative.

Turning to legal matters, Dukwana said his office would render legal services and advice to the Free State Provincial Government. “We have embarked on a three-year process to review provincial legislations to ensure alignment with policy mandates and relevant norms and standards,” he explained.

On the importance of communication, Dukwana said people deserve to know what their government is doing, and the government needs to listen to the people. “Information content on various platforms, such as newsletters, radios, television and social media, will be driven by the needs of the communities.”

To meet these institutional development obligations of Programme 2, a R293 413 million budget has been allocated.

Integrated planning, alignment and coordination

Programme 3 will align, integrate and coordinate the activities of the three spheres of government to ensure compatible and complementary development priority setting, coordination and implementation that will facilitate the province’s growth. “Long-term planning and its inherent benefits to reorder the development landscape of the Free State continues to be our utmost priority,” Dukwana said. “We are reviewing the Free State Growth and Development Strategy, which articulates the province’s economic, social and political landscape in an integrated development web. Given that the strategy is a representation of the convergence of views about the current and future development of the province, the review process will include widespread consultation with various social partners.”

Infrastructure and economic development

Successful realisation of the objectives of the Free State Growth and Development Strategy, which entails alignment with the Economic Reconstruction and Recovery Plan and National Infrastructure Plan, is predicated on the implementation of major infrastructure projects.

“Roads, railways, bridges, hospitals and schools will breathe life into our economy, development, growth and wellbeing," the premier said. “Several major infrastructure projects involving roads, healthcare, human settlements, water and renewable energy have been registered with Infrastructure South Africa as part of the process to develop a viable project pipeline.

“Considering our location and the great potential it holds, we are serious when we say we want to position the Free State as a bustling hub of economic activity, growth and development for the country," Dukwana said.

“We have set in motion processes with entities that include the Central Energy Fund and PetroSA to explore how the Free State can be used as the country’s energy generation, logistics and beneficiation hub. We will also host an Energy Security Indaba to explore how we can contribute to the country’s energy security, affordability, and stimulate economic growth and create desired jobs.

“We are strengthening our project and programme management lifecycle technical capacity to oversee integrated provincial coordination of major infrastructure projects. Having multiple expertise in project planning, management, coordination and reporting will propel our infrastructure investment to new heights,” he said.

Building relationships

Implementation of the District Development Model (DDM) to enhance planning across the three spheres of government continues in the province. Dukwana explained that, using the DDM approach, consultation with social partners would be undertaken to conclude the Free State Social

Monitoring and evaluating performance and impact

Moving on to Programme 4, which is responsible for performance monitoring and evaluation of the implementation and impact of government service delivery interventions, Dukwana said: “This is about value creation, integrated alignment, interactive learning, responsiveness and constant service delivery improvements. We cannot achieve what we cannot measure. We learn from results. Therefore, performance monitoring and evaluation is crucial. It identifies the linkages between government priorities and desired outcomes through outputs, outcomes and impact.

“As the need for accountability and tangible results mounts, community development workers are essential in attending to community service delivery concerns and, referring these to relevant government departments and institutions for prompt response,” he explained.

This is conducted through the Presidential Hotline and Thusong Service Centres and complemented by the Letsema Service Delivery campaigns for cleaning, water leaks repair, drainage unblocking and pothole and road repair services.

“We are working on establishing Integrated Service Delivery Centres to bring essential services to communities and are fulfilling our pledge to establish a service delivery technical team, comprising civil and electrical engineers, quantity surveyors, town planners and ICT specialists, in the Office of the Premier,” he added.

“Processes to appoint and deploy these specialists to strengthen the capacity of municipalities to operate and maintain critical infrastructure essential for service delivery will be concluded in this financial year.

“Frontline service delivery monitoring will be intensified to change how services are offered and to facilitate learning and accountability. Support will also be lent to the Portfolio Committees of the Legislature responsible for oversight of the non-financial performance of provincial departments and state-owned entities, Dukwana advised.

“To strengthen the reach and impact of citizen-based monitoring, which enables people to redefine their everyday government service delivery experiences, a Citizen-based Monitoring Forum will be established to support and enhance citizens’ involvement in monitoring service delivery.

“Seeing the challenges that impair the effective functioning of our municipalities, we will provide support by implementing the Local Government Management Improvement Model,” the premier stated. “We will establish an instrument to drive and deliver on all priority infrastructure projects in our province in partnership with various other government institutions. This instrument's primary roles will include identifying and guiding the planning and execution of all major infrastructure interventions, building capacity to enhance the implementation of infrastructure projects, working to establish the Free State Growth and Investment Agency, which will mobilise and direct new investments, and coordinating skills development to facilitate economic growth areas and access to economic activities.

A budget allocation of R157 269 million has been made available for Programme 4 to fulfil its responsibilities in the 2023/24 financial year.

Hope for a better and brighter future

Premier Dukwana said in conclusion: “This budget calls for decisive action to make a real difference in the lives of our people. It offers hope for a better and brighter future. It invites us to work together to realise our growth and development imperatives.

“We must collectively drive a new Free State agenda that includes building a province that cares, puts people first, prides itself on excellent service delivery, and is free of corruption and led by moral and ethical leaders. Let us give our all today for a better tomorrow.”

MAKING THE PROVINCE GREAT

Presenting the Free State Provincial Budget Vote for the 2023/24 financial year, Premier Mxolisi Dukwana urged the importance of reimagining the province as the artery and spine of the South African economy, highlighting what it has to offer South Africa.

• The Free State borders six other provinces and the Mountain Kingdom of Lesotho. Five major national highways intersect the centrally located province that is also well served by rail and air links.

• The N3 is South Africa’s busiest road, and the Highway Junction truck stop at the entrance to Harrismith claims to be Africa’s biggest. More than 1 500 vehicles pass through daily.

• Two of the biggest highways pass through the province. The N3 links the ports of Richards Bay and Durban with the industrial heartland, and the N1 provides north-south connectivity.

• The Free State produces 30% of South Africa’s wheat, 45% of its sunflowers, and 45% of its maize.

• Links to the west (Kimberley and Namibia) and east (Lesotho) underpin the planning behind the N8 Corridor concept, which covers Bloemfontein, Botshabelo and Thaba Nchu.

Premier Dukwana then turned his focus to the province’s districts, saying they boast many diverse and unique economic opportunities.

Fezile Dabi District is an important agricultural production area, Xhariep District is known for its farming, and the Lejweleputswa District offers goldfields and agricultural potential. Thabo Mofutsanyana District is an important tourism destination, and the Mangaung Metropolitan Municipality is the trade and administrative hub of the Free State.