Minister Velenkosini Hlabisa: COGTA Dept Budget Vote 2024/25
Honourable Chairperson
Honourable Members of the Portfolio Committee
Members of the Provincial Executive Committees
Fellow Cabinet Members and Deputy Ministers of COGTA
Chairperson of the National House of Traditional and Khoi-San Leaders,
Chairpersons and Presidents of State entities
Directors-General of DCOG and DTA
CEOs of MISA, MDB and SALGA
Ladies and Gentlemen
Good Afternoon
It is an honor for me to stand before this distinguished House today to table Budget Votes 3 and 15 respectively, which pertain to the Departments of Cooperative Governance and Traditional Affairs (CoGTA).
The 2024 National and Provincial Elections results have once again underscored the significance of a functional and capable cooperative governance system as envisioned by our Constitution.
South Africans have directed us to unite and collaborate towards achieving the noble objectives of the National Development Plan, particularly through enhancing basic service delivery, accelerating inclusive economic growth, urgently addressing poverty, and combating corruption.
Let me remind this August House that 2026 Local Government Elections are around the corner and the present term of local government comes to an end. We owe it to our communities to better their lives through effective and impactful service delivery.
Our mandate enjoins us to improve coordination across the three spheres of government in aid of integrated planning, implementation and monitoring which underpins the principles of a capable and developmental state. This mandate, we believe, is the cornerstone that will drive the country to a developmental, efficient and ethical local government that is able to impact the lives of citizens positively.
Since our appointment by President Cyril Ramaphosa, Deputy Ministers Dr. Masemola and Prince Burns-Ncamashe and I have dedicated considerable time to thoroughly acquaint ourselves with the intricacies of the Departments and their entities. It is through this budget that we commit as elected officials to faithfully serve no other cause than that of the public, firmly rooted in promoting socio-economic development and sustainable service delivery.
We also wish to take this opportunity to thank and recognise the good work that was done by our former colleagues, Ministers Thembi Simelane and Parks Tau, as well as Deputy Minister Prince Burns-Ncamashe, who has been reappointed to the portfolio.
Challenges and issues in the environment
In recent years we have seen an increase in various types of disaster events across our country. Some of these unfortunate events have resulted in the loos of lives and livelihoods. I wish to take this time to also convey our deepest condolences to the loved ones of those who have tragically lost their lives. We also acknowledge work undertaken to rebuild our societies and we urge all government structures to increase the speed of responding to the plight of communities.
As we present our plans and progress since the last Budget Vote, we must acknowledge the critical role played by CoGTA, highlighted by the floods and fire which are currently devastating communities in the Cape Metro and KwaZulu-Natal. We recognise that only through our urgent interventions will lives and livelihoods be saved. We thank all those who are collaborating with Government to assist distressed communities.
We have learned with heavy hearts of the passing of fourteen people who died in the veld fires in KZN. Among the fourteen, six were firefighters, some volunteers. These brave men and women paid the ultimate price to save communities. We convey our heartfelt condolences to the loved ones of all the victims. May their souls find eternal rest.
In times like these, we must support each other as a community, in line with the principles of Ubuntu. Tomorrow, my team and I will be visiting the affected areas in KZN to assess the situation and provide support.
We also extend our heartfelt sympathies to the families and loved ones of the initiates who sadly passed away during initiation seasons. These losses are truly sorrowful, and we acknowledge the pain and grief that the affected families are enduring during these difficult times.
We are all well-aware of the numerous challenges faced by our municipalities, with some failing to provide services needed by communities.
On the other hand, our traditional and Khoi-San leaders also face their own set of challenges which include uneven provision of support and resources to fulfill their roles effectively, challenges in integrating traditional and khoi-san leadership structures with municipal governance frameworks, and the need to finalise the formal recognition of khoi-san leaders and to promote respect for the cultural heritage which traditional and khoi-san leaders are custodians of.
We have thus since joining the Department worked to understand these multifaceted challenges and comprehensive programs that are essential to the effective functioning of our local government and the institution of traditional and Khoi-San leadership.
Although the issues and initiatives in these sectors are not entirely new to us, we have made concerted efforts to gain insights and a deeper understanding, ensuring that we are well-prepared to address the needs and aspirations of our communities.
In addition to meeting and engaging the top management in this portfolio, we had an opportunity to convene the first MINMEC meeting of CoGTA sector on the 10th of July 2024. In that meeting we collectively agreed with MECs that the CoGTA sector in the 7th Administration will work tirelessly to turn around dysfunctional Municipalities and improve support for institutions of traditional and Khoi-San-Leadership.
Time for lamenting is over, the 7th Administration has opened a new chapter which must be a turning point for the CoGTA sector post 30 years of freedom and democracy and we are committing to build on the work of the 6th Administration whose work had impact on various communities. Over the past five years (2018/19-2022/23), municipalities have invested R67.5 billion out of the allocated R77 billion in infrastructure development.
These investments have yielded substantial results. A total of 272,954 poor households now have access to water services, and 238,125 poor households have access to sanitation services. Additionally, 4,961 kilometers of road infrastructure in poor communities have been improved, and 112 central collection points for refuse transfer stations, recycling facilities, and solid waste disposal sites have been developed nationwide to enhance access to basic services.
Despite all these gains, there are still perennial challenges across the sector which continue to challenge the intermittent provision of basic services in our communities.
Budget allocations
The budget and the projected expenditure are well elaborated in the departmental plans and are geared to assist us to achieve the targets we set ourselves and to address the various challenges we are experiencing in our portfolio.
The Department of Cooperative Governance’s (Vote 3) allocated budget for the medium term is R395.7 billion, with a significant portion of 95.9% (R379.61 billion) designated for transfers to municipalities and affiliated entities. However, there are planned reductions in total expenditure, decreasing by R3.7 billion in 2024/25, R4.5 billion in 2025/26, and R5 billion in 2026/27, at an average annual rate of 3.2%.
Despite the reductions, overall expenditure is expected to increase at an average annual rate of 4.6%, from R125.3 billion in 2024/25 to R137 billion in 2027/28. Transfers to provinces and municipalities account for an estimated 95.9% (R379.6 billion) of the department’s total budget over the MTEF period, primarily for the local government equitable share, disaster relief grant and the municipal infrastructure grant.
In respect of Vote 15, the appropriated budget for 2024/25 amounts to R187,3 million. There is a budget reduction of R5,8 million compared to the previous year’s allocation due to mandatory budget cut implemented by the National Treasury. However, this allocation is expected to increase to R194,650 million in 2025/26 and R203,972 million in the outer year of 2026/27. Out of this allocation, 25% is a transfer payment to the CRL Rights Commission, which translates to R45,6 million in 2024/25, R47,7 million in 2025/26 and R49,9 million in 2026/27.
District development model
As we work to resolve challenges in our sector, we do so with a commitment and collaboratively with all stakeholders to enhance the capabilities of our municipalities, ensure that they are equipped to deliver essential services.
Furthermore, we are aware that the institutionalisation of the DDM and ensuring that it bear fruits will not be possible without the involvement of our traditional leaders. The DDM will therefore remain instrumental as we move forward being an all of society and government approach. Under the leadership of the former Minister Simelane, the Department promulgated the IGR Regulations in May 2024, thus laying a solid foundation for the institutionalisation of the DDM across the three (3) spheres of government.
We welcome the completion and approval of the DDM One Plans across 52 District and Metros which should now be implemented. The implementation of these plans requires collective effort from all sectors, - government spheres, State-Owned Entities (SOEs), the private sector, and civil society.
By the end of term of the 7th administration, we aim to eradicate fragmentation in planning, budgeting, implementation, and monitoring of government programs. We cannot seat on the sidelines whilst the tax payers money are not used as planned and infrastructure that could benefit our communities remain dream.
With regards to the Eastern Seaboard Development, which is a DDM flagship project, we aim to fast-track the implementation phase. This will include intensifying the awareness-raising of the project, engaging with traditional leadership and the private sector, establishing Special Purpose Vehicle (SPV) for dedicated programme management capacity for the implementation, project preparation and resource mobilisation totaling R58,9 billion Eastern Seaboard Development project pipeline over the next MTSF (2025-2030).
In ensuring involvement of Traditional leaders in the DDM, the Department engaged four Local Houses of Traditional and Khoi-San Leaders namely Ugu, Harry Gwala, OR Tambo and Alfred Nzo. Traditional Leaders have committed to continue working with the department in the Eastern Seaboard Development initiative. The department will continue working with traditional structures in those districts to ensure that they participate in and contribute to the initiative. This is in response to the Invest Rural Master Plan which seeks to, among others, address and enhance job creation in areas under the jurisdiction of traditional leadership. Consultations will also continue in this financial year once catalytic projects have been identified and budget made available for the implementation thereof.
Local government and interventions in municipalities
The Department will continue to monitor the 32 Section 139(1) interventions in municipalities invoked by provinces and 3 Section 139(7) invoked by the National Executive, namely, in Lekwa Local Municipality (MP), Mangaung Metro (FS) and Enoch Mgijima Local Municipality (EMLM) in the Eastern Cape.
The National Cabinet Representatives (NCR) have been withdrawn from Mangaung and Lekwa Municipalities, however these municipalities are monitored through the War Rooms that meet quarterly and are led by National Treasury. In the case of Enoch Mgijima, Cabinet has resolved that the NCR be returned there and we will soon be visiting the municipality to implement that decision.
In the case of Lekwa Local Municipality, the commitments made in the previous budget cycle to support struggling municipalities yielded positive results in some areas. Lekwa Local Municipality is one example where some stability in governance has been realized. The intervention by national government, and support provided by Mpumalanga COGTA and other stakeholders, have yielded positive results.
As a result of the interventions and the willingness of the municipality to embrace change, the municipality’s rating has improved from Dysfunctional to At Risk. The municipality’s improved political stability and governance resulted in an improved audit outcome. This has also created a conducive environment for execution of infrastructure projects, such as:
Construction of a 10 megalitres Kieser Street reservoir and pressure tower;
Upgrading of the Standerton WWTW from 12 Megalitres per day (ML/d) to 21ML/d;
Upgrading of a bulk sewer line in Rooikoppen;
Improved solid waste management services through fencing of a solid waste facility and procurement of solid waste fleet;
Resurfacing of the main roads in town and the taxi route to Sakhile;
Installation of 7 600 smart meters, with the support of the DBSA; and
A recorded 87% expenditure on MIG as of May 2024.
Although same is true in other areas, we are still facing unprecedented instability in some areas. For example, the interventions in Enoch Mgijima and Ditsobotla Local Municipalities have been severely compromised by political instability. There is a need for a concerted effort to address the challenges in these and other municipalities to restore delivery of services to communities.
Also, in the 2023 budget speech, the former Minister of COGTA made an undertaking that 20 distressed municipalities would be stabilised by the end of this financial year. I am pleased to announce that a report will soon serve in Cabinet which will indicate considerable progress in the stabilisation of distressed municipalities. Notwithstanding, as some municipalities are stabilised, others are destabilised.
Going forward, the Department will continue to implement and enforce compliance with Municipal Support and Intervention Plans (MSIPs) in municipalities that remain distressed and in certain circumstances Financial Recovery Plan for financially distressed municipalities. I must indicate that we do this work in collaboration with National Treasury supported by the Provincial COGTAs and Treasuries as well as sector departments and SALGA.
In this 7th Administration, as CoGTA we plan to prioritize five (5) additional municipalities who are in severe financial and governance distress which has negatively impacted service delivery. Some have struggled to pay salaries over the past three (3) to six (6) months. Some have debts that seem insurmountable as well as prolonged and expensive litigation. These municipalities include: Ditsobotla (North West), Kopanong, Mafube(Free State), Emfuleni (Gauteng) and Thabazimbi(Limpopo).
Additionally, we will address the challenges faced by the Ethekwini Metro, which is grappling with governance, institutional, and service delivery issues. This metro is currently receiving concurrent support from the National government, led by the Presidency, and from the province, led by KZN COGTA.
It is important to note that this prioritization does not imply that other municipalities are not facing similar challenges. Our commitment remains to support all municipalities that are experiencing difficulties.
Infrastructure maintenance and improvement
A number of municipalities have, despite support, neglected repairs and maintenance especially in the area of water and sanitation, resulting in the Department of Water and Sanitation issuing directives. As a results, the Department will also shift funds from the Municipal Infrastructure Grants (MIG) Schedule 5b (direct) to Schedule 6b grants.
This is necessary because In some cases municipalities ignore even the directives from the DWS which explains the 36 criminal charges preferred by DWS against 26 water services authority across the country. The Schedule 6b grant will empower the Department to intervene in these cases, in order to achieve better results.
The Department has, for the purposes of executing the MIG 6B Conversion Programme, identified the Municipal Infrastructure Support Agent (MISA) as the implementing agent. Currently, National Treasury has approved implementation of two projects on behalf of uThukela District Municipality and Emfuleni Local Municipality through this arrangement.
The two projects involve upgrading and refurbishment of sewer and water infrastructure and have a combined value of R90 million. The Department is currently engaging municipalities and National Treasury for extension of these services to other needy municipalities. The success of this intervention is dependent on political buy-in and municipal councils agreeing to the conversion of their MIG allocations. This is easy to achieve if we all prioritise delivery of services to our communities. As we implement this programme, priority is given to supporting and strengthening the capacity of municipalities for them to independently and effectively execute their mandates.
We are happy to report that in the 2023/2024 municipal financial year, there was a huge decline, from over R900m in the 2022/2023 to just over R450m worth of MIG allocations stopped and reallocated by National Treasury. This is due to the intensive monitoring programme that the Department has implemented together with provinces. We intend intensifying this support during the 2024/2025 financial year until all municipalities spend their allocations on addressing service delivery challenges.
All water Service Authorities that receive the MIG are now compelled to spend at least 10% of their MIG allocations towards repairs and refurbishment, particularly on water and sanitation. This should result in the reduction of sewer spillages and water leakages that lead to increased revenue water in municipalities.
Honourable Speaker
MISA will continue to provide technical support and strengthening the capacity of municipalities to plan, deliver, operate and maintain infrastructure. This will be achieved by, amongst other functions, conducting infrastructure assessments, providing technical support in infrastructure management, strengthening municipal capacity through skills development initiatives, and providing infrastructure delivery management support services, such as infrastructure financing, project preparation, project management, and infrastructure procurement.
Targeted municipalities will be supported to reduce non-revenue water when another set of 30 municipalities are going to be supported with incorporation of labour-intensive construction methods in the design and delivery of their infrastructure projects. This initiative is meant to support job creation in municipalities.
We acknowledge the need to improve the capacity of municipalities to deliver basic services, quality infrastructure and integrated public transport to increase household access to basic services. A total of 55 municipalities will receive MISA support towards implementing grant funded projects with the aim of increasing access to basic services, such as electricity, water and sanitation, roads, and solid waste collection. On the other hand, targeted water service authorities (WSAs) will be supported to improve the functionality of their water and wastewater treatment plants.
It has become clear that the challenges related to procurement and infrastructure development are intricate and demand consistent support. Therefore, MISA will continue its efforts to assist the 22 distressed municipalities. These municipalities are increasingly confronted with the need for infrastructure investments to deliver essential municipal services. They also struggle to mobilize resources for this infrastructure due to their borrowing limitations and reduced transfers from the national government amid fiscal constraints.
We will therefore continue to collaborate closely with strategic partners to aid municipalities in mobilizing a wide array of resources through innovative and alternative funding mechanisms, thereby boosting municipal infrastructure investments.
Recognizing that a significant barrier to accessing additional resources for infrastructure investment is the lack of bankable projects, we are committed to supporting the preparation and packaging of six municipal projects. These projects aim to attract funding from financiers.
Additionally, MISA will partner with the SADC Groundwater Management Institute (GMI) to implement groundwater mainstreaming. This initiative will involve developing groundwater schemes aimed at accelerating access to water across the provinces of North West, Northern Cape, Free State, Eastern Cape, Mpumalanga, KwaZulu-Natal, and Limpopo.
The Municipal Demarcation Board (MDB), one of the most important independent constitutional bodies responsible for the advancement of our local democracy, has recently welcomed, with effect from 01 March 2024, a new Board which will serve a five-year term leading to February 2029. The previous Board which operated until 28 February 2024 had laid a firm foundation which led to the MDB achieving 100% performance on its set targets to the period ending 31 March 2024. This performance was against a background the MDB having finalized municipal boundary redeterminations proposals having gone through an unprecedent number of submissions, approximately 51 000 during one of the stages.
Despite budgetary constraints and limited capacity (Workforce), the organisation has managed to maintain a clean audit for five (5) consecutive years. This performance underscores the commitment and capability of the organisation to deliver spatially transformed, just and sustainable communities.
The main shortcoming on the part of the MDB is the absence of regional offices in all provinces, something which the Portfolio Committee also raised in the previous financial year and the impediment to establish regional offices is related to noted budgetary constraints, which the new Board is expected to make proposals to request additional funding to address the prevailing challenge the outcome of which will result in communities being served better. It is important that the MDB, is provided with sufficient resources to ensure that it is empowered to effectively and independently perform its legislative mandate.
The MDB recently issued a circular notifying the public about the Ward Delimitation process and the legislated engagement process must be finalized before 31 October 2025 as is a requirement to inform the IEC Process leading to the LGE2026 and we ask this House to be on the alert and assist the community to be able to effectively participate and make the said Local government elections a success story.
Legislation
Honourable members, allow me to provide an update on the key legislative initiatives currently being processed by CoGTA. These legislative efforts are crucial in strengthening our local governance framework and ensuring more effective service delivery across our municipalities.
The Traditional and Khoi-San Leadership Act was enacted in 2019, however, the Constitutional Court judgement of 30 May 2023 declared the bill unconstitutional and invalid. The declaration of invalidity was suspended for a period of 24 months to allow Parliament to re-enact the legislation in a manner that is consistent with the Constitution. In this regard, the 6th Administration started with the implementation of the Constitutional Court order and a new Bill has been drafted and all the administrative processes on the new Bill have been finalised. We will now take this process forward by tabling it in Cabinet for approval, after which it will be submitted to Parliament.
Independent Municipal Demarcation Authority Bill: During 2022, the Department introduced the Independent Municipal Demarcation Authority Bill (“the IMDA Bill”), which amends the Local Government: Municipal Demarcation Act, 1998. Following its introduction into Parliament, the Department has actively supported both the National Assembly and the National Council of Provinces (NCOP) in processing and finalizing the amendments to the Bill. The IMDA Bill had been deferred to the 7th administration and for consideration and further processing. The amendments are primarily informed by inputs from previous Boards, lessons learned from past redeterminations and ward delimitation processes, litigation outcomes, and contributions from various stakeholders.
Local Government: General Laws Amendment Bill: The Department has initiated a comprehensive review of legislation impacting local government, including the Structures Act, Systems Act, and the Property Rates Act. This review aims to consolidate good practices and address challenges holistically, leading to the development of the Local Government: General Laws Amendment Bill. Following Cabinet approval on 27 March 2024, the Bill was published in the Government Gazette for public comments, with the initial deadline extended to 31 July 2024.
Local Government: Municipal Structures Amendment Bill: To address the complexities of coalition governments within local governance, the Department has introduced the Local Government: Municipal Structures Amendment Act, 2024. This Bill responds to public calls for structured guidelines and legislation for coalition governance. Approved by Cabinet on 27 March 2024, the Bill was published for public comments, with submissions extended to 31 July 2024.
Intergovernmental Monitoring, Support, and Interventions Bill: The Intergovernmental Monitoring, Support, and Interventions (IMSI) Bill was developed to respond to the requirements of Sections 100(3) and 139(8) of the Constitution, which call for legislation to guide interventions in provinces and municipalities. Published in the Government Gazette on 10 July 2023, the Bill received 1,338 written comments from various stakeholders. Following careful consideration of these inputs, the Bill was approved by Cabinet on 27 March 2024. Once final vetting is received from the Chief State Law Adviser, the Bill will be introduced into Parliament.
Inter-Governmental Relations Framework Act (IGR): With regards to the Inter-Governmental Relations Framework Act (IGR) Review, we will be publishing Regulations in terms of Section 47 of the Intergovernmental Relations Framework Act for public comments. The introduction of these Regulations will be a significant milestone as it will enable all three (3) spheres of government to strengthen their relations through the lens of the DDM. The regulations will ensure that the DDM is institutionalised within the existing IGR framework as defined in the Act but also makes provision for establishing DDM technical structures at national, provincial and district levels.
Traditional Courts Bill: The Traditional Courts Bill, now enacted as Act No. 9 of 2022, marks a significant step in formalizing traditional justice systems. The Department, in collaboration with the Department of Justice, is finalizing draft regulations to facilitate its implementation. This includes assessing existing traditional courts, training leaders, and ensuring adequate resources for effective operation.
Review of the White Paper on Local Government: The Department has initiated a review of the 1998 White Paper on Local Government to identify shortcomings in local government policy and its implementation, proposing recommendations to address challenges hindering effective functioning. The White Paper, a landmark document guiding democratic local government since 2000, needs updating due to significant political, social, and economic changes in the sector. For example, the original assumption that municipalities could fund 90% of their recurrent expenditure from own revenue is no longer valid, as recent studies show only 60% coverage. This review thus aims to develop further policy and legislation to improve local government, with recommendations feeding into the Local Government: General Laws Amendment Bill and other systematic policy changes.
Honourable Members, as indicated, these legislative initiatives are important in enhancing our local government system, ensuring better service delivery, and addressing the challenges faced by our municipalities. The Department remains dedicated in its commitment to supporting Parliament in processing these important pieces of legislation, and we look forward to the positive impact they will have on our governance system and communities.
Results based planning
In pursuit of improving and enhancing the delivery of quality and sustainable municipal basic services, the Department adopted a Results-based Planning approach towards the key programmes that will result in meaningful impact. To that effect, a Results-Based Management Office (RMO) has been established with a number of workstreams. The RMO as a strategic form of professional support is already making inroads to capacitate municipalities deliver infrastructure and strategic projects in order to drive the necessary enhancements required to improve service delivery. The RMO is resourced with highly qualified, skilled and experienced local government experts and specialists who are working with municipalities, provincial governments, national sector departments and State-owned entities to bring about the needed basic services to communities in all the 9 provinces.
Review of the disaster management system
We recognize that the challenges we face in disaster management are largely due to the fact that South Africa has experienced not only an increase in the number of disasters—such as droughts, floods, COVID-19, and severe weather—but also an increase in their magnitude, severity, and impact. These events have occurred either simultaneously or in rapid succession, straining our resources and systems.
The challenges we face in disaster management are primarily due to deficiencies in regulatory legislation, which is not designed to adapt to the ever-changing risk environment. The systemic and structural design of our disaster management delivery, as guided by current laws, results in issues with timing and bureaucracy.
Key elements of the Disaster Management function were assigned to municipalities through legislation, but without funding. This created a contradiction between the Disaster Management Act and the Municipal Systems Act (MSA), which requires sufficient funding and capacity for assigned functions (Sections 9(3) and 10(3) of the MSA). Consequently, municipalities lack the necessary funding and capacity. Our government response has struggled with agility, efficiency, and effectiveness in risk analysis, prevention, mitigation, emergency preparedness, early warning systems, and recovery services. Fire and rescue services also face significant challenges. In July 2022, the Cabinet mandated the National Disaster Management Centre (NDMC) to review and overhaul the disaster management system, including fire services.
In response to this, we are proposing a new system for disaster management and fire services. This system aims to improve governance by reorganizing administrative structures and financing models to better respond to growing disaster risks. The same principles apply to fire services. We have since developed a new model based on best practices from New Zealand, Russia, Brazil, Mozambique, California, and Australia. The new model emphasizes risk reduction and integrates disaster management into all levels of government planning, ensuring adequate funding and focus on resilience.
Cognisant of the magnitude and possible impact of the bold changes proposed, the NDMC undertook extensive consultations with all stakeholders through existing disaster management structures and across the three spheres of government. Inputs were received and used to refine the proposed model.
We look forward to working with all stakeholders in the management of disasters, this including rolling out training to Houses of Traditional Leadership (particularly those in disaster prone areas) on disaster management. This will enable them to work closely with all spheres of government and stakeholders on the ground to assist in disasters. An implementation plan has been developed in this regard for effective implementation of this training.
Another key milestone the Department has achieved is the signing of the Memorandum of Collaboration with the Department of Defence earlier this year. This is a key step in fortifying our nation's capacity to mitigate, respond to, and recover from disasters. We believe that this partnership will harnesses the strengths and resources of both Departments, amplifying our collective ability to safeguard lives and livelihoods. Through this Memorandum of Collaboration we will see, amongst other things, the Community Work Programme (CWP) participants playing a role in disaster preparedness and community development. Deputy Minister Dr. Masemola will provide more details on work undertaken in the CWP branch.
Addressing issues of traditional and Khoi-San leadership
The institution of traditional and Khoi-San leadership has raised several issues with the government through various engagement platforms during previous Administrations. To address these concerns, the 6th Administration established the Inter-Ministerial Task Team (IMTT) on Traditional Leadership, led by the Deputy President. Various workstreams, each led by relevant Ministers, were created to address specific issues and report progress to the Deputy President. The government aims to support the Office of the Deputy President in onboarding new Convening Ministers to ensure continuous attention to the concerns raised by AmaKhosi.
Amongst the outstanding issues to be resolved was the Traditional Courts Bill, whose finalization dragged over a prolonged period of time. I am pleased to report that that Bill was assented to and signed by the President on 16 September 2023 as an Act of Parliament (Act No. 9 of 2022). The Department of Justice and Constitutional Development is preparing draft Regulations which will undergo the necessary processes towards approval and gazetting, to enable the effective implementation of the Act. Furthermore, the Department of Justice and Constitutional Development is working with the Department of Traditional Affairs regarding the necessary measures including establishing the number of existing and non-existing traditional courts, the training of traditional leaders and capacitation (resources) of Traditional Courts to prepare for the implementation of the Act.
Furthermore, the long outstanding issue pertaining to the payment of izinduna in the Province of KwaZulu Natal has also reached finality and a budget of R631m was allocated and transferred to KZN towards the payment of Izinduna..
Draft Policy Discussion Documents were developed during the previous administration to address issues related to tools of trade, pension benefits, one-off gratuity for members of Houses of Traditional Leaders, and amendments to chapters 7 and 12 of the Constitution. These documents provide policy proposals for consideration, which the 7th Administration will advance, finalize, and implement.
Regarding Khoi-San leadership, the Commission on Khoi-San Matters (CKSM) was established to handle applications for the recognition of Khoi-San communities and leaders and to submit recommendations to the Ministry. The Commission has received 124 applications and conducted 62 Applicant Member Investigations (AMIs) to ensure application completeness. During the current financial year, we will continue to support the Commission to ensure it completes its work and submits recommendations. Our aim for this administration is to achieve the recognition of Khoi-San communities and leaders and their inclusion in the Houses of Traditional and Khoi-San Leaders.
We are aware that matters of concern to Khoi-San communities go beyond the recognition processes provided for in the Traditional and Khoi-San Leadership Act administered by COGTA. The 7th Administration will therefore make use of existing intergovernmental platforms to address the issues of concern through a whole-of-government approach
Training and capacity building of traditional leaders
Training and capacity building for traditional leaders is a critical agenda for the department. In collaboration with partners such as the National School of Government (NSG), South African Local Government Association (SALGA), and Local Government Sector Education and Training Authority (LG SETA), the department will focus on expanding capacity-building programs. These programs cover areas like socio-economic development, gender mainstreaming, gender-based violence and femicide (GBVF), disaster management, and the role of traditional council members. Additionally, the department will continue to provide leadership development programs for AmaKhosi to enhance their ability to lead their communities effectively.
I am pleased to report that, In 2022/23 financial year, 851 Traditional leaders and members of traditional councils were capacitated in GBVF and Customary Initiation Act (CIA). In 2023/2024 financial year, a total number of 186 traditional leaders and members of Traditional Councils were capacitated in GBVF and CIA. In the 2024/25 financial year, 50 traditional leadership structures consisting of members of traditional councils will be capacitated on Gender Mainstreaming, GBVF and CIA. Eight (8) Houses of Traditional and Khoi-San Leaders will also be workshopped to contribute to disaster prevention and relief in line with the disaster management act
Customary initiation
Following the enactment of the Customary Initiation Act in 2021, which aims to protect and safeguard the lives of initiates, the National Initiation Oversight Committee (NIOC) was established in 2022. Additionally, eight out of nine Provincial Initiation Coordinating Committees (PICCs) have been formed, with the final PICC set to be established in this financial year.
We will continue to work with the South African Police Services and National Prosecuting Authority to support the National Initiation Oversight Committee and the Provincial Initiation Coordinating Committees in arresting and prosecuting criminals in this sector.
In the previous financial year, stakeholders, including the NIOC, PICCs, and traditional leaders, requested the drafting of Customary Initiation Act Regulations. These draft Regulations were developed, and we will consult with all role players and finalize the Regulations by the end of the current financial year. We will be seeking public comments on the Regulations and urge all stakeholders to provide their inputs when the time comes.
The Department has conducted initiation awareness campaigns in the hotspot districts of the Eastern Cape (such as OR Tambo) in the previous financial year focusing on clamping down on illegal initiation schools as it is where we experience fatalities. The Department will in this financial year, working with all initiation role players, conduct further awareness campaigns in the very same hotspot districts. We will also conduct inspections and unannounced visits to initiation schools in these districts and hotspot areas to support Traditional Leaders to take ownership of the practice so as to address initiation related challenges.
This is in giving effect to the resolutions of CRL Rights Commission Initiation Indaba convened on 23 to 24 April in 2023. The Indaba concluded on a number of resolutions, and the overarching commitment from all participants was to “assert the rule of law and the authority of the state for compliance and accountability and to preserve the sacredness of the cultural practice of initiation. The Department, working with NIOC and other stakeholders, will support the sector to ensure that this key resolution is realized. The perpetrators must be arrested to face the full might of law.
Conclusion
As I conclude today’s presentation, I extend my heartfelt gratitude to everyone who has contributed to the work of the Department. We understand that we are tasked with the significant responsibility of enhancing service delivery, strengthening local governance, and ensuring the well-being of our communities.
Our success will depend on the collective efforts of Parliament, our government departments, municipalities, traditional leaders, civil society, and every citizen. This budget is not just a financial document but a reflection of our shared commitment to building a better South Africa.
House Chairperson,
Time for lamenting is over, we have to join hands to make an impact by turning dysfunctional municipalities around and improve support for institutions of traditional and Khoi-San-Leadership. The 7th Administration has opened a new chapter which must be a turning point for the CoGTA sector post 30 years of freedom and democracy.
Chairperson, I hereby submit for approval the CoGTA Budge, Vote 3 & 15 for the financial year of 2024/25.
I thank you
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