Date: 06/12/2010
Source: The Gauteng Provincial Government
Title: GP: Vadi: Speech by the MEC for Transport, on the annual report of the Department of Roads and Transport, Gauteng Legislature

Madam Speaker

I entered the room in which I was to be sworn in as a member of this House with apprehension. Nothing in my political career had prepared me for the unexpected and sudden switch from the National Assembly in Cape Town to the Gauteng Provincial Legislature. As I walked into the Chamber, your reassuring smile and graceful demeanour, Madam Speaker, immediately set me at ease and made me feel at home. I want to thank you most sincerely for the warm reception you had afforded to me and for the dignified manner in which you had conducted the swearing in ceremony.

I also wish to thank the ANC Chief Whip – the Honourable Brian Hlongwa - and other members of the opposition parties who were present to witness my induction into the House. Finally, I express my gratitude to the Premier for the confidence she has shown in me by appointing me to this portfolio.

WORLD CUP LEGACY

Before I proceed with my response to the debate, allow me to pay tribute to my predecessors, the Honourable Bheki Nkosi and Mr Ignatius Jacobs, for the sterling work done in promoting public transport and roads construction in Gauteng. I know that they have put in enormous energy and effort to develop an integrated transport system which links rail, taxis and busses, both provincially and locally. No one can dispute that Gautrain is a world class initiative and that the Department delivered on its mandate during the Fifa Soccer World Cup. I am also keenly aware that both of them have tried their very best to promote good governance during their terms of office.

In responding to the Committee’s assessment of and recommendations on the Annual Report of the Department of Roads and Transport, we would like to reflect briefly on the some of the notable achievements of the Department. The 2010 FIFA World Cup saw an impetus on road infrastructure improvements, which served to boost the ability of the provincial government to move more efficiently people, goods and services within and around the province. Our position as government is that this momentum should not be lost. The integrated planning and co-ordination of transport arrangements during the soccer tournament has inspired us all to seek ways of sustaining this approach more permanently. The maximum usage of all forms of public transport must become a new culture, a new way of life for our citizens. In return, the Department and government more generally, must commit itself to improving public transport services by implementing projects that seek to deliver an efficient, safe, reliable, affordable and integrated public transport system.

POWER OF ONE

Over the past few weeks, the sheer pressure of work had enabled me to attend the sessions of the House only intermittently. I am impressed by the quality and intimacy of the debates. But what struck me the most was a quotation by Ben Okri, cited in the recent Budget Adjustment Speech by the MEC for Finance, the Honourable Mandla Nkomfe.

Okri says, “One great thought can alter the future of the world. One revelation. One dream. But who will dream that dream? And who will make it real?” This got me thinking about a unique concept in the theory of building outstanding leadership called, “The power of one!” Drawing from natural science, it provides examples of how just ONE thing can make a difference. For example, at 99°C water is hot; at 100°C it boils. Boiling water produces steam; and steam can power an engine. It’s a matter of only 1°C.

So my office had to ask itself a simple question: Of the many challenges that confront the Department of Roads and Transport, what is the ONE thing that we should deal with first?

We’ve come to the conclusion that the single, most important issue is the perceived negative public image of the Department. Whether it is true or not, the perception exists that the Department’s procurement and tender processes lacked integrity and transparency. Hence, today we want to focus especially on this matter, and to report on the measures we have instituted to change this negative perception.

SECURITY VETTING

Firstly, we have started the process to ensure that the Senior Management of the Department obtains proper security clearance from our security services. Already, a team from the State Security Agency has met with the Head of Department and all the Deputy Directors-General and circulated the relevant documentation to them. These have to be returned on the 10 December 2010. In due course, security vetting will be extended to other management layers of the Department. Furthermore, we will not to use private security companies for tasks relating to security vetting; these must be the preserve of the State Security Agency.

FINANCIAL DISCLOSURE

Secondly, we are pleased to report that as of Friday, 3 December 2010 all senior managers – from Director level upwards - have submitted their Financial Disclosure Forms as required by the public service code. My office will evaluate these forms in due course, to ensure that there are no material conflicts of interests. If there are any apparent conflicts, we will take appropriate action internally and report the matter to the Public Service Commission.

ADHERENCE TO TENDER REGULATIONS

Thirdly, the senior management of the Department and my office are in the process of finalizing regulatory procedures for managing Departmental tenders. Henceforth, the Department will adhere strictly to the relevant provisions of the Public Finance Management Act; the National Treasury Practice Notes; the Preferential Procurement Policy Framework Act; the Broad Based Black Economic Empowerment Act; and the Prevention and Combating of Corrupt Activities Act.

As supported by the MEC for Finance and the recent Gauteng Anti-Corruption Summit, all tender decisions will henceforth be made available on the Departmental website. As a general rule, a tender should be awarded to the lowest bidder that is compliant and who has met all the stipulated requirements. In due course, all members of the Bid Evaluation Committee and the Bid Adjudication Committee will have to obtain the relevant clearance certificates from the State Security Agency. Lastly, in this category, we have requested the Head of Department not to act as the Chairperson of the Bid Adjudication Committee. This will ensure that she can, independently, verify compliance with our newly-established procedures before signing off on any tender.

REVIEW OF CONTRACTS

Fourthly, over the past few months and acting on the instructions of the former MEC for Roads and Transport, the Head of Department has reviewed over 200 contracts that the Department had entered into over the past two years. Where there were material irregularities in the awarding of contracts, the contracts have been terminated by the Department. Where the contractual arrangements were not justifiable, the Department has entered into discussions with the contracting parties to re-negotiate the terms of the contracts. And where there are no discernible irregularities, the Department has confirmed the arrangements and is in the process of settling its accounts.

SETTLING DEBTS

Fifthly, as at 1 April this year, the Department had accruals and outstanding debts totalling R613 million. We are pleased to report that to date this amount has been reduced by 51 percent and that the Department has already paid R314 million to our debtors. We remain hopeful that we can further reduce our debt over the next few months. My office adopts a simple approach to public finances – our books must balance at the end of each financial year.

NO UNSOLICITED BIDS

Lastly, we take this opportunity to announce that the Department and my office will not be responding to unsolicited bids for the next 12 months. The reason is simple. The Department has severe budgetary constraints and it is our intention in future to divert as much of our financial resources as is possible to the rehabilitation of provincial roads, rather than to any new projects. This voluntary moratorium will be reviewed by my office in the middle of next year.

G-FLEET – PROVINCIAL TREASURY SUPPORT

We are extremely concerned that in the last financial year, G-Fleet obtained a disclaimer from the Office of the Auditor-General. The reasons for this state of affairs are now well-known. According to the Auditor-General, there was insufficient audit evidence available to him to express an opinion. There was no proper financial record-keeping and there were numerous financial misstatements.

G-Fleet has now appointed a new CEO, COO and CFO. The new leadership has committed itself to submitting an interim audit to the Auditor-General, which deals with issues reflected in the Management Letter. The entity will develop an Audit Action Plan to monitor progress on implementing the recommendations of the Auditor-General. My office will shortly be approaching the Provincial Treasury requesting it to second ONE official to support the new Executive Management, so as to ensure that the audit opinion on G-Fleet improves at the end of this financial year.

GAUTRAIN

We are generally pleased that the Gautrain Management Agency received an unqualified audit in the last financial year. Last week I had the good fortune of conducting an inspection-in-loco of construction sites to witness the progress made to date. We are pleased to report that tomorrow the last of the carriages for Gautrain will be received by the Acting Premier.

I believe that of the 1700 staff members that we have in the Department of Roads and Transport, everyone is important. If every single staff member does just ONE thing differently and better, 1700 things will improve in our work. This can power the Department to new heights. This is the power of one!
Finally, may I take this opportunity of thanking the Legislative Committee on Roads and Transport for examining critically the Annual Report of the Department and for making sound recommendations to improve its performance in future. We will respond in writing to some of the outstanding issues raised by Honourable members of the House. May I wish you all a Merry Christmas and a prosperous New Year. Remember, road safety begins with you!