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Date : 01/06/2004
Source: Eastern Cape Provincial Government
Title: N Moerane-Mamase: Eastern Cape Social Development Prov Budget Vote 2004/2005


BUDGET VOTE SPEECH FOR 2004/5 BY MRS NEO MOERANE-MAMASE, MEC FOR SOCIAL DEVELOPMENT, EASTERN CAPE, TO THE PROVINCIAL LEGISLATURE, 1 June 2004

Honourable Madam Speaker
Honourable Premier
Members of the Executive Council
Members of the Legislature
Traditional Leaders
Our partners in Social Development
Invited guests
Ladies and gentlemen

Introduction

It is indeed a great honour and privilege for me to be afforded the opportunity to present the Budget Vote of the Department of Social Development for the year 2004/5. This comes at a time when the department is taking bold steps to improve service delivery to our people, in particular to the most vulnerable of our society especially children, older persons, people with disabilities, persons infected with and affected by HIV/AIDS and other diseases. The past year has been a very challenging but also fruitful one in many ways for us.

The focus of my budget speech will be on poverty eradication. Poverty is the major challenge facing South Africa and the Province of the Eastern Cape in particular. Because of the multi-dimensional nature of the problem the importance of collaboration with other role-players cannot be overemphasised.

The Department of Social Development is but one of the departments addressing the problem of poverty. Our role is to intervene directly whenever individuals and families are in distress due to poverty. We also have a responsibility of building capacity and skills of communities and families to prevent poverty by implementing community development approach as a strategy. We are also ready to share with all stakeholders our knowledge, experiences and insights into poverty and its various manifestations. The longer-term eradication of poverty is central to all our strategies and programmes. It ensures that poverty relief programmes are sustainable, that various poverty programmes that are embarked upon are integrated and complement one another and that policy development and research in the areas of poverty is given priority.

The other area that we will be focusing on is the acceleration of service delivery.

We have during the past year developed systems that will enable us to achieve that. To bring services closer to our clients, we have developed and implemented a District Coordination model of service delivery. This model gives more responsibility and authority to managers to carry out their functions and responsibilities. Other systems are the Procure to Pay system for improved efficiency in financial management; the Management Information System for monitoring performance; and the Master Systems Plan, and a tighter control of our contracts through a Contract Management Centre. Thirdly, but also importantly, we will also concentrate more intensely this year on the prevention and elimination of fraud and corruption in our systems and operations, especially in relation to social security.

Progress Achieved

I have indicated that the past year has been an eventful but rewarding one. The most significant process that the department embarked on was the formulation and implementation of a Turnaround Plan for the department to deal with certain recurrent service delivery problems. The plan sought to:

* Stabilise the department;
* Turn around the department; and
* To support the change process.

The milestones in the turnaround include the following: -

* Improving Social Grant Administration -
* Work achieved by the Social Grants Task Team;
* Expanding social security safety-net through the expanded Child Support
* Grant scheme in accordance with target set by the national department;
* Management of payment contractors to improve payments at pay points;
* Establishment of helpdesks at pay-points; and
* Implementing internal controls to prevent fraud and corruption through the establishment of an electronic file management system and management information system
* Providing services to the most vulnerable in our society and greaterm involvement in developmental activities such as income generation, food-relief and home and community based care: -
* Child support services;
* Improving the capacity of non-government organizations, faith based organizations and community based organizations through streamlining the funding process;
* Victim Empowerment Program;
* Youth programs;
* Age management; and
* Programmes on HIV/AIDS.

BUDGET AND POLICY PRIORITIES FOR 2004/5

The department will be focussing on 6 priority areas during the MTEF period (2004/5 to 2006/7In line with the ten-point plan of the national Minister of Social Development and the priorities of the provincial government). These priority areas are the following: -

* Transformation of welfare services;
* Integrated poverty eradication programme;
* Integrated social security system;

* Special development areas;
* District development; and
* Improvement of management systems

Development Social Services

This branch of the department represents the core function and therefore constitutional mandate of the department. The delivery processes spearheaded by this branch are based on three pillars, namely: protection, care and development. The protection aspect of the programme deals with the provision of the safety net therefore provision of the basic needs; the care aspect deals with vulnerability and care. The development aspect focuses on the releasing of the human potential to self-reliance and interdependence. Through the initiative from this branch, the department managed to convene three conferences towards the end of the financial year to do introspection on its delivery processes, refocus its intervention and develop pathway towards Social Development.

The conferences were addressing issues of dichotomy between Social Welfare and Social Development; the linkage between the economy and Social Development; the transformation process; and strengthening of community development as a strategy towards eradication of poverty including development of partnerships in service delivery. The tone of the conferences began to re-shape the culture of the department, the way of doing things in the department, realisation of movement from business as usual to "business unusual". They charted a way towards development of a community development strategy, development of a framework on social development that will serve as a road map towards social development.

The content and outcomes of the conferences conclusively confirmed the need to shift as an imperative if we are to make meaningful change in the lives of the vulnerable, poorest of the poor and the needy. They began to determine the role of the department in the shift and proposed ways and means in which change will be effected. The department became alive on its mandate to strive for self-reliant individuals and communities. As a brain-child of the conferences the following strategies are to be finalized during this financial year: -

* Community development strategy
* NPO development strategy
* Social Development framework
* Poverty eradication strategy
* Monitoring and evaluation framework

Youth Care and Development: The demographic information reveals that 54 % of Provincial population is youth who are either out of school, out of jobs or unemployed. Due to the frustration and inadequate development initiatives youth choose inappropriate means of leading their lives such as prostitution, crime, alcohol and drug abuse. This stream will focus on both youth care and development where programmes such as life skills, income generation, skills development, integrated programmes and shelters for homeless youth will be provided. This programme will be piloted in Cacadu in Makana with a budget of R825 000.

Care for the disabled: The department will focus on implementing integrated disability strategy as one of best practice models. Key intervention will be on
Home Community Based care for the disabled, skills development centres, income generation, shelters, protective workshop, Special Day Care Centres and Women Empowerment Program. The department is targeting OR Tambo specifically Port St Johns for this programme and budget allocation is R840 000.

Care for Older Persons: For many years older persons have been regarded as a tax burden as well as a reason for economic decline. The department is refocusing such thoughts to view the elderly as a heritage, caregivers, as contributors to economic development as well as moral regeneration. The department is developing Home Community Based Care intergenerational programs, income generation, service centres as well as day care centres, micro insurance to avoid victimisation of elderly by unscrupulous micro-lenders and the implementation of preventative programs that focus on elderly abuse and educating the elderly about human rights and, indeed, their own rights. This programme will be piloted at Ukhahlamba in Senqu with a budget of R966 000.

Social Crime Prevention: A lot of youth in the province are involved in crime related-activities; in fact, we regard them as being in trouble with the law. The majority of them get arrested for petty crimes specifically economic offences such as stealing bread and sweets, which is a reflection of poverty and hunger. However, they find themselves getting deeper into the Criminal Justice System because of inadequate diversity programmes. The critical areas where such crime reaches its heights are Port Elizabeth, Mdantsane, Umtata, Lusikisiki, Queenstown and Grahamstown. This stream of intervention will focus on reception, assessment and referral (RAR) centres; which is a programme that targets assessment of youth within 48 hours of arrest, skills development, Home Based Supervision, life skills, moral regeneration and economic development.

The programme will be piloted at Nelson Mandela Metropole in Uitenhage with a budget of R500 000.

HIV/AIDS: The HIV/AIDS rate in the province has been estimated to be 23,4 %, in which majority of infected are youth. The departmental mandate is to provide
Home Community Based Care to the infected, affected and vulnerable children and orphans. We will pilot on programme, which combines Home Community Based Care to the infected, affected and vulnerable children and orphans. We will pilot a programme which combines Home Community Based Care, Provision of food supplements and food parcels, implementation of food security as well as income generation programme, support group for the infected and affected individuals. Our target area for this is Buffalo City, Amatole District, with a budget allocation of R1, 554,786.

Poverty Alleviation: One of the major problems facing the country is the iniquitous distribution of food and therefore we have a challenge of food insecurity among households in the length and breadth of the Province. Some families go to bed without food in their stomach. This situation leads to serious health problems especially for children, pregnant women and for who suffer fro HIV/AIDS and other infectious diseases such as TB. The department will develop a food security program, which will be piloted at Ukhahlamba in Senqu with a budget of R1, 340 000.It will focus on development of nurseries, implementation of food security programme, initiation of village banks and Micro Save projects. Job creation through the Expanded Public Works Programs will be implemented.

NPO Development and Partnership: The department realises that the services of NPO sector are still biased towards the urban and peri-urban areas of the former Republic to the almost virtual exclusion of the rural and former homelands areas. As has been stated above, the majority of our citizens reside in rural areas, which constitute 65 % of the Province. This is not the department's intention to change the nature and character of the NGO, however there is an interest to provide management support, provide mentorship, provide capacity and improve on contract management. The department is well aware that it cannot reach all the people of this province it needs to draw genius, the skills and capacity of the province to bring about something new, good and beautiful. The programme will be piloted both in urban areas Nelson Mandela and rural areas Alfred Nzo in Mt Frere as pilot programme one focusing on mobile services while the other will be focusing of a fixed physical structure. The target areas are Alfred Nzo and Nelson Mandela Metropol in Mt Ayliff and Port Elizabeth respectively with a budget of R940 000.

The department has however reprioritised its interventions given the financial and resource limitations and more focus will be given to the following:

* Home community based care for people with disability will be rolled out in Buffalo City and Lusikisiki. The programme will combine Home community based care, skills development and income generation. A budget of R1, 810 000 has been allocated for this purpose
* Home based care for older person that will focus on Home Based Care, service centres income generation and intergenerational Programs in Ukhahlamba, OR Tambo, Alfred Nzo, Amatole, Cacadu and Nelson Mandela Metropole. In this financial year R4, 426 000 will be divided equitably across the 6 districts and the metropole
* Alternative care for youth in trouble with the law. The department will strengthen the place of safety for youth in trouble with the law in East London, while the tender process to outsource the Place of Safety in Umtata will be undertaken. The total budget for this intervention is R4, 555 000 for both the targeted areas
* Children in need of care and protection will be supported through cluster homes at OR Tambo in Bizana. This will serve both Home Based Care Programme as well as implementation of Expanded Public Works programme. A budget allocation for this purpose is R615 000
* In the spirit of moral regeneration, the department will be implementing Family Preservation Programmes in OR Tambo, Amatole, Alfred Nzo, Chris Hani, Cacadu and Ukhahlamba focusing on recruitment and training of foster parents, placement of neglected abused orphaned and homeless children in alternative care. A budget allocation for this programme is R3, 330 000, which will be shared by the 6 districts and the metropole
* Clear Programmes in partnership with Local Government, Faith based organizations and business sectors will be provided on both Youth Care and Youth Development. The focus will be on homelessness, life skills, skills development and economic development for the target group. The target areas will be Nelson Mandela, Amatole and Chris Hani. A budget allocation of R3, 260 000 will be made available for the rolling out of this programme
* Women empowerment: Women have been in the receiving end of abuse, deprivation and economic underdevelopment. The department will focus on 25 women in each of the following District Municipalities: Chris Hani, OR Tambo, Alfred Nzo and Nelson Mandela. Such programmes will be linked to domestic violence and skills development with a budget allocation of R3, 907 000
* Victim Empowerment Programme: The Uitenhage area in Nelson Mandela Metropole has been identified as one for the areas in which child abuse is rife among children and assault is affecting lot of women. The department has prioritised the implementation of victim empowerment programme which will be focusing on home based care, implementation of support groups, implementation of Care Havens, implementation of women empowerment programmes as preventative programmes targeting both survivors of violence and perpetrators. A budget allocation of R1 091 800 has been allocated for this purpose
* Shelters for Street Children: A lot of children who experience pull and push factors from families to the street find themselves victims of violence, crime and are presenting a negative effect on the tourism industry which is crucial component of the provincial economic development. It is the determination of the department that children live with their families and in communities. This programme will focus on drop-in centres, which will serve as overnight shelters to street children, implementation of home community based care programme, provision of life skills and skills development of street children. The targeted areas are: Nelson Mandela Metropole, Amatole and Chris Hani Districts. The budget allocation for this intervention is R3, 260 400
* Developmental Foster Care: This programme will be targeting children in need of care and protection, children in trouble with the law with a view to facilitate improvement of their home conditions in preparation for the full integration of children to their families and communities. The placement within these families will be strictly for 12 months and intensive engagement of families and children for reunification will be high on the agenda. The programme is targeted at Cacadu - Cookhouse, OR Tambo - Tsolo, Ukhahlamba - Aliwal North and Maluti, Chris Hani - Lukanji. The allocated budget for this purpose is R3 225 000 which will be shared among the targeted areas.

Review of the budget for 2004/5

The budget of the department will increase from an adjusted allocation of R7.8 billion in the 2003/04 financial year to R9.1 billion in the 2004/05 financial year.

This represents an increase of R1.3 billion of which 97% has been allocated for transfers to households and institutions.

The budget shown an upward trend over the medium term with the indicative allocations for the financial years 2005/06 and 2006/07 of R10.1 billion and R11.2 billion respectively.

Of note in the budget is the special allocation for:

* Poverty Relief of R94.1 million, which will increase to R99.7 million over the medium term
* The extension of the Child Support Grant to children up to 14 years of age over the medium term of R903 million, extending to R2.3 billion over the medium term
* The provision of Home and Community Based care for those infected and affected by HIV/AIDS of R7 million, extending to R7.9 million over the medium term.

The further widening of social security net through social security payments, notably the extension of the Child Support Grant and provisions of MEC policy speech framework 8, the protection of real value of social grants over the medium term. Given the pattern of ageing of the South African population, the number of elderly is growing significantly faster than the rest of the population, resulting in continued growth in the number of Old Age beneficiaries. Eligibility for disability, Foster and Care Dependency Grants will in all likelihood expand, pending policy decisions, as the social and economic impact of HIV/AIDS is felt more widely.

Transfers to organizations for the delivery of welfare services and those related to poverty relief and home based care remains largely constant over the medium term. The budget for the current year has remained in line with what was allocated and spent in the previous year, at R144.6 million, extending to R162 million over the medium term.

The department is of the opinion, based on projects carried out in the previous financial year, that these organizations must enter into formal Service Level Agreements, detailing the measurable outputs, which aim to further the delivery mandate of the department. By doing so, efficiencies will come into play, allowing the department more coverage at a similar cost.

There is a modest growth in the budget for Development and Support.

Services of 7.5% over the medium term with budget increasing from R111 million in the current financial year to R119 million over the Medium Term Expenditure Framework.

Challenges Ahead

Although significant progress has been made in various areas of our work, there are many challenges that still lie ahead. They include -

* Unacceptably high levels of poverty
* HIV/ AIDS
* Child headed households and orphans
* The establishment of closer partnerships with all Government Departments, and sectors of society to work together in a more integrated and coordinated manner
* Improvement of the capacity of the department to deliver services
* Fraud management in grant administration and in particular in the disability grant & CSG.

Conclusion

The year that lies ahead requires an intense implementation of the plans and programmes that we have in place. This requires that we dedicate ourselves anew to combat poverty and all other forms of deprivation such as HIV/AIDS, child abuse etc. the final arbiters of our dedication are the children, women and men whose circumstances change for the better because of our intervention.

This translates to prompt and courteous service, no fraud and corruption and a humane and caring approach to service delivery.

For the summary of key result areas go to http://www.ecprov.gov.za.
Issued by: Department of Social Development, Eastern Cape Provincial Government
1 June 2004
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za/)

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