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Mbeki: Media briefing after Cabinet Lekgotla (29/07/2003)

29th July 2003

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Date: 29/07/2003
Source: Government Communication and Information System (GCIS)
Title: Mbeki: Media briefing after Cabinet Lekgotla


PRESIDENT THABO MBEKI NOTES ON CABINET LEKGOTLA, 29 July 2003

The mid-year Cabinet lekgotla was held from 23 to 25 July. The meeting dealt with many levels of issues pertaining to the work of government. These include:


* initial reflections on the trends in social transformation in the period since the advent of democracy in 1994;
* medium-term projects meant as quickly as is possible to improve people's quality of life; and
* interventions required in each cluster to improve the impact of government programmes.

Discussion at the lekgotla was guided by the framework of government's programme decided upon in January and articulated in the State of the Nation Address. Central in government's approach to the implementation of its programme is the confidence that the tide has turned, and that faster progress depends on South Africans joining hands to build a people's contract for a better life.

Reflections on the first decade of freedom

Cabinet noted that the lekgotla was the penultimate such engagement before the end of the First Decade of Freedom in April 2004. The meeting therefore afforded Cabinet the opportunity for initial reflections on the main trends in the programme of social transformation and on the major opportunities and challenges as we enter the Second Decade.

The lekgotla noted, from in-depth research and analysis done thus far, that massive progress had been made in building a democratic state based on the will of the people, in attacking the poverty and neglect that characterised social relations under apartheid, in setting the economy on a sustainable growth path, in entrenching safety and security among all South Africa's people, and in placing South Africa at the forefront of Africa's development and equitable global relations.

Noting that conditions in all areas of endeavour are incomparable to those that obtained under apartheid, Cabinet asserted that the starting-point in determining progress should be the objectives that the democratic state set itself. In this regard, the overwhelming evidence is that government has met most its immediate objectives as set out in the Reconstruction and Development Programme.

This is borne out by the progress in major areas of human development such as freedom and the culture of human rights, legitimacy of the state, education, health care, water and sanitation, access to electricity, macro-economic balances, orientation and ethos of the security structures and relations with governments, international institutions and peoples of the world. Many of the indicators of progress are contained in the results of Census 2001, published by Statistics South Africa some two weeks ago.

It was noted that many challenges remain - most of them reflecting the legacy of apartheid, and others a consequence of the very freedom and development that the new state has introduced. Among these are the changing demographic patterns represented by the increase in the number (or reduction in the size) of households, the massive increase in the economically-active population compared to the number of jobs the economy is creating, changes in the structure of the economy and migration trends.

Cabinet charged the Clusters of Directors-General to continue with detailed assessment of, and planning on, these issues, in order to inform more comprehensive discussion at the January lekgotla. It also instructed the Clusters to weigh their detailed plans against a set of possible developments in the Second Decade of Freedom, reflected in a set of broad Scenarios presented to the lekgotla.

The preliminary results and conclusions arising from the research will be made available to the public in the coming months.

Medium-term projects for speedy impact

In the programme of government announced in February 2001 and 2002, a number of projects were identified, aimed at further improving the quality of life of South Africans as quickly as possible. The Cabinet lekgotla noted progress in this work, and identified, where applicable, short-comings that needed immediate attention.

Access to social grants

One of these programmes is the widening of the net of recipients of social grants, including a massive registration campaign for South Africans who are eligible for these grants. The meeting welcomed the fact that the number of children registered for these grants had reached 3,4-million, with 264-thousand children registered since 1st April this year and 220-thousand new grants issued in the first quarter of this year alone. The total number of recipients of social grants has now passed the 6-million mark.

It was agreed that the registration campaign should be further intensified, at the same time as we strengthen the partnership with communities and non-governmental organisations which has commendably been central to the progress made thus far. Critical interventions in this regard relate to the provision of identity documents, communication and access to government facilities. This requires, among other initiatives, an increase in the number of mobile units, especially in rural areas.

Backlog of classes

Government committed itself that by the end of 2004, "no child should study under a tree". This commitment speaks to the urgent need to improve school infrastructure and ensure that the massive increase in enrolment experienced in the past 9 years is backed by adequate infrastructure.

The lekgotla was informed that, from a backlog of over 755 classes in 2000, the number had been reduced to 18 in 2003. The meeting however noted that information on this challenge required thorough auditing, taking into account the poor statistical system in some provinces, and the varying interpretations of "appropriate classrooms". The Social Cluster was instructed to follow this matter up, and ensure that the commitment of government on this matter is met, within the given time frames.

Extended Public Works Programme

Cabinet was briefed on the preparatory work in identifying projects for an extended Public Works Programme, both as an instrument of poverty alleviation and a basis for skills development. This programme features at the top of government's agenda because it is critical for the inclusion of a great number of South Africans - many of whom have little possibility for immediate absorption into the formal economy - in income-generating activity from which they are also able to acquire skills.

The programme is meant to focus on the building of social infrastructure including housing, municipal services, roads, government facilities, coastal care and land care. Further, it is also aimed at providing "soft" skills and services in areas of AIDS awareness and home-based care, adult literacy and so on.

While the lekgotla noted progress in the conceptual work in line with the outcome of the Growth and Development Summit - as well as projects being undertaken in some Provinces - it was felt that the scope and objectives of the proposal needed significant improvement. As such, a special meeting of the lead Ministers and the President and Deputy President would be held as a matter of urgency to finalise the proposals for immediate implementation.

Building partnership for growth and development

As demonstrated with the campaign around registration for social grants, co-operation between government and civil society is critical for progress on a whole range of government programmes. Cabinet therefore welcomes the spirit of letsema and vuk'uzenzele that has infused interaction of the public with government programmes, including crime prevention, marketing of the country and in the education sphere.

In the recent period, the most critical intervention in this regard has been the Growth and Development Summit, which has laid the foundation for co-operation among economic role-players in speeding up investment and job-creation. Government reiterates its commitment to the decisions of the June Summit, and it has put in place mechanisms to ensure the implementation of the GDS agreements.

Reduction of court backlogs

As part of the improvement of the integrated justice system, government has targeted the reduction of cases pending trial. In the past three to four years, High and District Courts have improved their conviction rates from about 76% to 83%; additional and Saturday Courts have reduced backlog of cases by 55-thousand; and a sample of Court Centres shows that the average case preparation period has been reduced from 110 to 71 days.

While this reflects commendable progress in the work of the courts, Cabinet noted that improvements in one area of the Integrated Justice System would naturally put pressure on other parts of the chain. Further, coming from a low base, these improvements still have to have an impact on the extreme levels of overcrowding in our prisons.

These medium-term programmes which have the potential to make a speedy impact on people's quality of life, and which in some instances have already started to do so, form only a small part of the broader programmes of government in the various sectors. The Cabinet lekgotla examined all these sectors comprehensively; and below we outline some of the major issues.

Strategic interventions in various clusters

Governance and Administration

The lekgotla examined the work being done with regard to integrated governance, and noted progress in the preparation of a Bill on Integrated Governmental Relations; introduction of the electronic Cabinet information system; integration of Batho Pele into departmental planning; and the implementation of public participation programmes such as Imbizo, Ward Committees and Integrated Development Programmes of municipalities.

The Gateway electronic service system will be launched in October, and access will include a Call Centre and mobile units. At the same time, the programme to roll out Multipurpose Community Centres is proceeding as planned.

In order to ensure better utilisation of personnel across the three spheres of government, time frames have been put in place to construct "a single public service". In the first quarter of next year, mechanisms will have been finalised to allow for human resource transfers; and uniform conditions of service should be introduced in 2005, setting the stage for framework legislation.

The lekgotla noted improvements deriving from the intervention in the Eastern Cape to improve service in selected departments. The experience gathered in this exercise stands national and provincial governments in good stead to ensure that weaknesses are corrected before matters reach the stage of crisis requiring invocation of Section 100 of the Constitution.

Having been briefed on the implementation of Resolution 7 on restructuring of the public service, Cabinet noted that of the approximately 24-thousand employees in excess, 70% were at the lower salary level; while there were 15-thousand vacancies, 80% of which were at skilled levels, especially in the health sector. It was agreed that special efforts would be put in place to recruit skilled personnel, while training the excess personnel in various areas so they could take up take up opportunities as they arise. As agreed with the trade unions, retrenchment, in the long-term, would be the very last option.

Cabinet accepted a proposal on the immediate implementation of the programme to employ Community Development Workers who will help to improve contact between government and citizens especially in poor communities. It was agreed that these "generalist, multi-skilled" workers would be introduced in a phased manner, starting in the Rural Development and Urban Renewal nodes and other localities in Gauteng, the Eastern Cape, Northwest and Limpopo. Recruitment and training will start as soon as possible.

Economic Cluster

The lekgotla reviewed the state of macro-indicators in the economy, and noted that the balances, represented by fiscal position, balance of payments and inflation remained sound

The meeting also noted the global economic slowdown which has had an impact on our export performance. In this regard, and also as a consequence of high interest rates necessitated in the recent period by the depreciation of our currency and high inflation, the economy experienced a growth rate of 1,5% in the first quarter of 2003. Indications are that the slowdown is starting to reverse as we enter the third quarter.

Cabinet agreed that the challenge in the coming period is to stay the course of building on export success, expanding service sectors, providing critical economic infrastructure, expanding economic opportunities especially in the areas of SMME's and micro-credit for productive purposes, strengthening regulation and management of parastatals, boosting investor confidence and implementing projects aimed at immediate job creation (particularly the expanded Public Works Programme referred to above).

The meeting comprehensively examined the country's logistics system in terms of roads, rail, ports, air transport and border posts. It noted the programmes already in place to improve the system, and came to the conclusion that these were not adequate, given the demands of a growing economy.

In this regard, the meeting decided:

* Additional resources would be provided by government to add to the allocations of Transnet immediately to improve the rail network, particularly with regard to locomotives, rolling stock and infrastructure. Further, such issues as prices, efficiency of the General Freight Business and acquisition of additional expertise will be discussed with Transnet as a matter of urgency
* The transaction for the Durban Container Terminal would be expedited, additional resources would be mobilised to ease congestion at the Durban, Cape Town and PE container terminals and special measures would be put in place to improve efficiencies - including communication among stakeholders
* Additional resources would be allocated to the road programme, and along with the Spoornet upgrade, there will be a phased reduction in axle mass limits on the roads
* Discussion would be held with SAA and ACSA to ensure expansion of fleet recapitalisation and introduction of improved cargo and passenger screening systems
* An investment upgrade would be introduced at the high-traffic border posts and implementation of the Southern African Transport and Communications Commission protocol would be expedited.

In addition to these measures, it was agreed that the system of regulation and pricing in the telecommunication sector needs to be improved.

The lekgotla also examined details of issues pertaining to the skills acquisition programme for the economy. It identified scarce skills such as scientists and researchers, managers, professions (finance, ICT, engineers and others) as well as artisans and related areas requiring urgent interventions. These interventions will include recruitment from outside of SA, setting aside a portion of the National Student Financial Aid Scheme and National Skills Fund to pursue training in these areas, firm measures to ensure efficiency in the SETA system and possibilities of extending some of the financial benefits accruing to learnerships into the internship programme.

Social Sector

In addition to the medium-term programmes highlighted above, the meeting noted progress in the implementation of government's social programmes such as education, water and sanitation, electricity and so on.

With regard to new decisions taken in January, the meeting welcomed the beginnings of implementation of free health services for disabled persons from 1 July 2003. Guidelines for assessment and classification, as well as assessment tools and training manuals have been dispatched to health institutions to inform the rollout. Nutrition Guidelines for hospital patients with TB and AIDS have been developed. The fight against TB, prevention and containment of cholera and rolling back malaria are proceeding well; and the Task Team Report on an enhanced treatment programme against AIDS will be presented to Cabinet soon.

The lekgotla also examined the issue of Comprehensive Social Security, and noted the impact of programmes already under way, including social grants and the recently introduced free health care for people with disabilities. It also reiterated that social insurance mechanisms such as the UIF and Road Accident Fund needed to be put on a sustainable footing. Further, systems will be put in place to encourage both private discretionary and mandatory social insurance, including social health insurance.

Government last year introduced targeted food parcel distribution as part of the immediate temporary measures to deal with the impact of high food prices. Having noted the impact of this programme and the weaknesses in some areas, the lekgotla decided to extend the distribution of these parcels to the original beneficiaries (244-thousand households across the country) for a further three months, with better follow up on sustainable self-help projects.

The meeting also noted progress with regard to the Integrated Rural Development and Urban Renewal Programmes. While noting that these programmes were meant to be of a long-term nature, it expressed concern at the capacity in a number of Provinces and municipalities to ensure integrated implementation.

Justice, Crime Prevention and Security

In addition to the urgent task of reducing court backlogs identified above, the Cabinet lekgotla was briefed on the work being done to finalise the processing of national statistics and trends for 2002, which will be released by SAPS next month. Preliminary indications in this regard are that the trend of reduction and stabilisation in priority crimes continues.

The meeting noted and welcomed the work of the Directorate of Public Prosecutions, with an 85% conviction rate during 2001 and 2002. Of great significance is the improving efficiency of Commercial Crime Courts, with a conviction rate of 86% in 2001, 96,2% in 2002 and 93,4% in the first half of 2003.

With regard to the decision to improve the system of rural security, including the replacement of commandos, Cabinet was informed that 85% of the audit of current Commando equipment had been completed.

Cabinet also noted the trends in the conviction of sexual offences, and instructed the JCPS Cluster to further pursue the underlying causes to the fact that in 2000, 53% of cases were withdrawn and in 30% of reported cases, perpetrators could not be traced.

Progress in implementing measures to deal with issues arising from the Jali Commission on Correctional Services was welcomed. Further, it was noted that safe custody of prisoners had improved, with escapes reduced from 1244 in 1996 to 325 in 2002.

Other matters which were noted by Cabinet include continuing work to deal with other priority crimes as well as measures to improve border control.

International Relations, Peace and Security

The Cabinet lekgotla reaffirmed South Africa's approach in dealing with major international issues facing humanity. These include such immediate challenges as collective efforts to ensure a multilateral approach to critical global issues, the fight against terrorism and the issue of weapons of mass destruction.

The central challenges in addressing the issue of global security include poverty eradication, removing trade barriers, eliminating the debt crisis in developing countries and ensuring equitable relations across the board. They also include co-operation among all concerned parties in resolving the Palestinian question.

South Africa will continue to work for the realisation of the objectives of the WTO Doha Development Round, for strengthening strategic economic alliances between the African continent and ASEAN, MERCOSUR, CARICOM and the Gulf Region, and for mutually beneficial relations of free trade with various regions and countries both in the North and the South.

Cabinet was briefed on the recent Summit of the AU and welcomed progress in the setting up of the AU Commission, the adoption of a charter on gender rights and the commitment to speed up the process to establish the Peace and Security Council and other AU institutions. South Africa will continue to spearhead the implementation of AU decisions as part of the leadership "troika" of the Union.

Critical in this regard is the implementation of various NEPAD initiatives and programmes, including projects in various sectors and regions, and the Peer Review Mechanism which is getting off the ground.

The government will also continue to commit what resources are available to assist in resolving conflicts on the continent, including in particular, the DRC and Burundi. We shall also continue to contribute to the efforts of the leadership and people of Zimbabwe in finding a lasting solution to their difficulties.

Issued by Government Communication and Information System (GCIS)
29 July 2003
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