SPEECH BY HELEN ZILLE, WESTERN CAPE PREMIER, TO THE FW DE KLERK FOUNDATION CONFERENCE - NATIONAL POLICY AT A CROSSROADS, July 25 2012

I would like to thank the FW de Klerk Foundation for inviting me to participate in today's deliberations  on the implications of the ANC's policy proposals for the future of our country, and more importantly, to speak on the proposals regarding the future of the provinces.

As we all know, this debate is not a new one. The ANC has for some years been making ominous noises against the provinces. The party has raised a number of reasons for why the provincial sphere of government should be reviewed and has often compared provinces to the former Apartheid Bantustans.

As far back as 2005, the ANC stated that it wanted "all South Africans to live in the same country and territory, not in a blakanised South Africa, not in a constellation of TBVC "states", not in a confederation of autonomous and independent provinces and not in Volkstate".

In July 2007, former Minister responsible for Provincial and Local Government Affairs Sydney Mufamadi announced a comprehensive "review" of the provinces and their role, but little happened.

Then in 2009, less than two months after the DA won the Western Cape in the national elections, former Minister of Co-operative Governance Sicelo Shiceka revitalised the debate asking "Do we need provinces?"  South Africa is one country...and "nobody is expected to be out of tune".  He announced that the ANC would decide on the future of the provinces by March 2010.

A summit was held later that year on provincial and local government, where it was decided that a blue print needed to be developed to guide the process of reforming, rationalising and strengthening the provinces.

Fast forward to 2012, and the debate has acquired a renewed urgency, taking centre-stage during the ANC's recent policy conference.

Party leaders have continued with the Bantustan comparisons, ANC national executive committee Nomaindia Mfeketo told journalists at the conference that the issue of the provinces had hung over the ANC for the nearly 20 years it had been in government.  When referring to reducing the number of provinces she stated "We know it'll be difficult to completely do away with what is seen as tribal boundaries, but we are hoping that we'll be able to tamper with that apartheid setting".

The conference has mandated President Zuma to appoint a commission to deliberate on how provinces need to be demarcated, what number of provinces is required and what their powers should be. However, this commission will only be appointed if it is endorsed at the ANC's national conference in Manguang in December.

While ANC leaders and the policy discussion paper on legislature and governance have vowed that a decision will only be taken after extensive public consultation, it seems conference delegates have already mooted reducing the nine provinces to six.

Reports from the conference indicate that the legislature and governance commission has agreed to: merge Northern Cape, Western Cape and some parts of Eastern Cape and incorporate the northern parts of Eastern Cape into KwaZulu-Natal. The North West would also cease to exist, as the commission has proposed that some parts of this province be merged with Gauteng and others with Limpopo.

This is a major cause for concern as it indicates that the ANC has already made up its mind about the future of the provinces, and a commission appointed by President Zuma will be nothing more than a box ticking exercise, while the ruling party forges ahead with a pre-determined decision.

So before I interrogate the reasons for why the ANC wants some provinces scrapped and why I believe the role of provinces is critical to our constitutional democracy, I want to appeal to civil society and all political parties to ensure that the ANC follows due process when undertaking this review. We must ensure the ANC engages in proper and meaningful analysis and consultation and listens to all sides before making a decision in this regard.

As I've already mentioned one of the main reasons cited by ANC leaders during the recent policy conference for reviewing the provinces is because they are a relic of apartheid. This argument is also found in the party's legislature and governance policy discussion document where the need for fewer provinces that "do away with ethnic boundaries" is highlighted.

But this argument is disingenuous.  The provincial sphere of government, and its powers, were not forced upon us, or inherited by us.  They were a home-grown product of the constitutional negotiations of the early 1990s that required compromise from all parties, not just the ANC.

While political parties had different agendas during these deliberations they thankfully put the essence of democracy ahead of their own self-interest. They made compromises in order to create a governance system that could provide checks and balances to prevent centralised power abuse and bring government closer to the people.

Most importantly, the nine provinces that resulted from these negotiations were not unilaterally created by one or two interest groups, but were a result of a lengthy process where all South Africans were consulted.

It is critical that we do not forget these deliberations and the many factors considered by the Commission for Demarcation and Delimitation of Provinces when deciding on our provincial boundaries. The nine provinces were not a result of a "thumb suck" but were created after taking into account a range of politically unbiased, balanced and considered criteria.

ANC leaders have also stated that the review of provinces is aimed at making service delivery more efficient, ensuring that the provinces serve South Africans better and are financially viable.

Recent meltdowns of provincial administrations, including Limpopo and the Eastern Cape, have highlighted that some of them lack the capacity to do their jobs.

But will scrapping these provinces and centralising control really fix the mess these provinces find themselves in?

The fact is that the crises in these provinces are man-made and not a result of provincial boundaries. This is evident if one looks at the financial crisis in Limpopo.

Investigations have revealed that the key reasons for the province's R2 billion shortfall are tender irregularities, supply chain management issues, and lack of contract management systems.  Civil servants in the provincial administration accumulated unauthorised expenditure that grew from R1.5 billion in 2009 to R2.7 billion in 2011 alone.

Investigations into the departments of education and public works found widespread corruption. For example, at least 200 "ghost" teachers were being paid each month and there were 2400 excess teachers in the province. A security contract of R1.8 million a month was also extended without proper procedures being followed.

It's clear the real reason for the mess in Limpopo are inefficient and corrupt officials who care more about enriching themselves than serving citizens.

Past experience from some National Departments (ranging from Home Affairs or Correctional Services) and parastatals (such as Eskom and SAA) show that centralisation can lead to as much mismanagement, corruption and inefficiency as provincial or local administration.  

Corruption is not bounded by borders or size. It can be rife in a tiny rural municipality or in a centralised government department.

Corruption proliferates when there is a lack of accountability and transparency and insufficient checks and balances - all the weaknesses that often characterise a centralised governance system.

The only solution to increase the capacity of provinces to do their jobs is to root out corrupt, lazy government officials and to appoint people who are fit-for-purpose and who are held accountable through performance management systems.

And National Government has the power to do this in provincial administrations. Clause 100 of the Constitution sets out detailed remedies the national executive can use to intervene in any province that is not fulfilling its obligations or maintaining essential standards. This includes a complete central take-over of provincial functions, where it can be demonstrated that provincial governments have failed. But, crucially, it also obliges national government to assist in building the capacity of the provincial and local spheres to function optimally.

The ANC national government has exercised this power in recent months over provincial departments in Limpopo, Eastern Cape and even in Gauteng. However, there has been no decisive move to hold officials found guilty of corruption and wasting taxpayers' money accountable for their actions and remove them from their positions.

The DA run Western Cape government recognises how critically important it is to put systems in place that promotes "fitness for purpose" and prevents corruption.

Since taking over power in 2009, we have introduced a number of interventions aimed at introducing a culture of excellence, responsiveness, integrity and accountability in our provincial administration.

This includes establishing a Corporate Services Centre, in which a human resources component for all provincial government is based. The centre recognises the value of appointing the right people in the right places, investing in the training of provincial staff and taking performance management seriously.  We do not believe in appointing people because of their political affiliations or connections but because they are the best and brightest talent.

Soon after taking over the administration, and as part of our commitment to clean, efficient governance, we immediately began studying the options available to restrict state employees doing business with the state as we believe that this is a key driver of corruption.

The result was the Business Interests of Employees Act, which was passed in 2010. The Act introduces new rules that will restrict provincial government employees from doing business with the provincial government and require every employee to disclose their business interests.

The fact is many people erroneously believe that the provinces have very few powers, and that it would therefore make little difference if they were changed or scrapped.

But this is not true. Provinces have real powers if they choose to use them. They can make policy and regulate on a range of issues including education, housing and health. They can be inventive, dynamic and more responsive to the needs of the people. They can encourage creative thought and policies and drive choice based on comparative results.

The Business Interests of Employees Act is a great example of a province testing the boundaries of its powers. And this is not the only way in which the DA is using the provincial administration in the Western Cape to introduce an alternative approach to government, there are numerous other instances.

For example, our administration has introduced a number of firsts in the field of education.

We are the only province to have rolled out the systemic independent testing of literacy and numeracy competence of learners in our schools. Last year, over 240 000 Grade 3, 6 and 9 learners were tested - three times the number of learners tested in the past eight years.

We have also lead the other provinces and national government when it comes to holding principals, circuit and district managers accountable for the outcome in their schools. Teacher accountability has been stalled at a national level because of the resistance shown by SADTU to performance agreements. However, our administration used its legislative powers to pass the Western Cape Provincial School Education Act in 2010, which makes provision for performance agreements for principals and deputy principals.  We were also the first province to introduce competency testing for matric examination markers.

Another example is the Western Cape Government's Work and Skills Programme for 100 000. While National Treasury has budgeted R5 billion for a youth wage subsidy programme, national government has been unable to implement it because of Cosatu's veto.

However, we have used our provincial budget and powers to implement a pilot programme for the youth wages subsidy in the form of our work and skills programme in the province.

One of the biggest problems underlying youth unemployment is the mismatch between skills supply and demand. The Work and Skills programme is targeted at providing jobless young people who have Matric or an equivalent qualification the opportunity to take part in a six month work placement programme.

Sponsored by the Western Cape Department of Economic Development and Tourism, recipients in the programme receive a stipend of R1 200, which partner companies are encouraged to top up. The aim is to give young people experience, skills and confidence as they gain a foothold in the job market.

This programme is a practical example of how provinces can introduce innovative programmes aimed at addressing the major challenges of poverty and unemployment in our country.

We are also testing the boundaries of our powers through the drafting of the Western Cape Community Safety Bill, which was sent out for public comment at the beginning of the year.

The purpose of the bill is to improve policing significantly by fully embracing the oversight function provided for provinces in the Constitution, something that no provincial government has done before.

While the Constitution requires provincial administrations to exercise oversight over the SAPS, their powers and functions in this regard are poorly defined.

Our draft bill seeks to do away with this uncertainty by clearly outlining what authority we have as a provincial government, to hold the SAPS accountable for their actions and failures.

The National Minister of Police has indicated that his department is opposed to our draft bill, arguing that we are exceeding our constitutional mandate. The point is that currently this mandate is not clearly defined and we are using our legislative powers to determine the extent of our oversight authority over the SAPS.

These are just some of the examples that illustrate how the DA administration in the Western Cape is proving that provinces can offer a new approach to government and can drive innovation and creativity.

It is crucial that all South Africans recognise the critical function provinces play in offering an alternative choice to voters and that their powers can be implemented to the advantage of development and local empowerment.

With this in mind, I believe that provinces have another key role to play, which is implementing some of the recommendations made by the National Planning Commission (NPC) through pilot projects and programmes.

The NPC has identified the key challenges facing our country - including poor and substandard quality of education for the majority of South Africans, a highly resource-intensive and unsustainable growth path and corruption which undermines state legitimacy and service delivery - and has proposed a number of solutions to overcome them.

While the NPC's proposals have been broadly welcomed by political parties and civil society, they have been largely ignored by the national government and the ANC's recent policy conference.

The provinces are in an ideal position to use their budgets and policy and legislation making powers to drive some of the solutions recommended by the NPC including: the development efficient ICT infrastructure, the promotion of renewable energy resources, providing reliable and affordable public transport, introducing teacher accountability and performance, reducing regulatory burdens hampering economic growth and job creation and building partnerships when it comes to reducing crime.

The DA in the Western Cape has only just begun to explore the creative opportunities available to provincial administrations but has already started demonstrating the potential provinces offer when it comes to promoting progress and prosperity in South Africa, and more importantly, giving other political parties a chance to demonstrate what an alternative government to the ANC can offer citizens.

ANC leaders have emphatically denied allegations that the call to review the provinces is an attempt to hold onto power and have instead argued that it is a response to the need for better service delivery. But, if this is the case, questions must be asked about the rationale behind merging the North West province into Limpopo - one of the worst performing provinces.

It is crucial that opposition parties and civil society stand together to ensure that the role of provinces, as envisaged by our constitutional negotiators, is not undermined by the ANC less than twenty years later. We need to ask tough questions about this proposed "review" and ensure the ANC does not make unilateral decisions that undermine the spirit of our Constitution and our democracy.

Issued by the DA, July 25 2012

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