Current Edition >> Archive Section >> Special Features >> July 2004
The dynamic interaction in the international currencies market has become an exciting trade of its own. Although often even volatile, it offers ample scope for profitable trading, providing one knows what you are doing.
In this new regular column, professional currency trader Dennis du Plessis of Bloemfontein, will inform readers of the Free State Business Bulletin step by step of the elements and requirements in order to become a successful trader by applying sound principles of technical, fundamental and psychological analyses.
USD/ZAR technical outlook by Bslion
Dennis du Plessis, MTI, Bloemfontein
As a first step, let us acquaint ourselves as follows with the basic vocabulary of the currencies trade :
Bulls: these are the buyers in the market, always wanting to buy low and then sell at a higher price.
Bears: they are the sellers in the market, selling high and buying low.
The US dollar has been under tremendous pressure from all the major currencies the last few months and as a result we had a stronger rand and bearish activity. From a technical point of view, the strength of the rand is under suspicion and we believe a weaker rand is due sooner than later.
The sellers (bears) have been in control for much of 2004, but the USD/ZAR rate has reached crucial levels on the downside, which could be the main determinants of direction for the immediate future.
Sellers could find support at the R6.2800 level and a bounce on this level could be the beginning of the great comeback for bulls. Should this level of R6.2800 not hold, the rand might appreciate even more, getting as strong as R6.1700. Buyers would then want to establish new highs in the coming weeks seeing that the US dollar has already started to strengthen against the Pound Sterling and the Euro over the short term. The R6.2800 level might just be the start of the turnaround for bulls and levels close to R6.600 could be seen as their first target in the short term, followed by medium term levels of R7.3000 and higher.
In general, we are favouring a weaker Rand in the next month, with the possibility of reaching the R7.3000 level in the medium term. The only condition for the latter, is that the R6.1700 level must hold given that further dips below this level could see the Rand as strong as R6.0000 and more. Exporters, importers and those involved with international tourism may benefit from at these levels.
For more info, Du Plessis can be contacted at (051) 430 0191.
It is, furthermore, historic that I am afforded to table my first Departmental Vote as MEC for Finance, at a time when an environment of stable finances and expansionary budgets make it possible for this Province to shift its efforts towards ensuring that public funds are spent efficiently and that services are delivered effectively to all citizens of this Province. In this regard it is clear that the ideals that our Comrades set in Kliptown in 1955 at the time of the adoption of the Freedom charter is fast becoming reality.
Allow me to proceed with the task at hand, as follows:
A brief overview of the transformation of public financial management since 1994;
Secondly, some of the major achievements of the Free State Provincial Treasury over the past few years;
Thirdly, the main expenditure proposals for my Department for the 2004/05, 2006/07, Medium Term Expenditure Framework (MTEF) period; and
Lastly, highlighting some remaining challenges which will be the areas of focus of the Provincial Treasury in 2004/05 and the rest of the next MTEF period.
1. THE TRANSFORMATION OF PUBLIC FINANCIAL MANAGEMENT SINCE 1994
It is opportune to look at the main features of the transformation of public financial management since 1994, as this will indicate where we come from and what the issues are that will take us forward into the second decade of democracy.
When the present Government came to power in 1994, it was confronted by financial management practices and procedures based on a long entrenched tradition of detailed supervision of item expenditure by financial controllers.
The reality of, the then, prevailing status quo, prompted this Government to move speedily to enlarge the operational discretion of line managers, through the:
modernization of financial management;
enhancement of public accountability; and
effective and efficient management of public revenue, expenditure, assets and liabilities.
In this regard, the introduction of the Public Finance Management Act (PFMA), Act 1 of 1999 as amended, probably signalled this Government's strongest commitment to a significant shift away from the old Exchequer Act, which:
was highly prescriptive and inflexible; and
placed more responsibility for financial decisions in the hands of Treasury, rather than that of Accounting Officers of respective Departments;
to an accountability framework in which Government entrusts spending agencies with flexibility in using resources in exchange for holding them responsible for results.
The implementation of the PFMA started a deliberate retreat from the doctrine of Treasury control that has been practiced in this country, like elsewhere, for centuries.
Today, only a few years after the introduction of the PFMA, Government's persistence to effect changes in traditional approaches to public financial management, has proved not to be in vain, as observers and analysts alike, point to a substantial evidence of real progress that exists, to validate the early success of implementing the PFMA across the public sector.
2. MAJOR ACHIEVEMENTS OF THE FREE STATE PROVINCIAL TREASURY OVER THE PAST FEW YEARS
Some of the major achievements of my Department over the past few years, which achievements form the backdrop against which the 2004/05, 2006/07, MTEF expenditure proposals are drawn.
When South Africa's new Constitution declared that everyone has inherent dignity and the right to have their dignity respected and protected, it was clear that it would call for exceptional political will and commitment to exercise the necessary and appropriate choices to realise this ideal.
In retrospect, it is clear that this vision assisted the provincial Treasury to make a clean break with the past, through the entrenchment of more effective and efficient resource-based planning over a multi-year period.
Furthermore, an accountability framework has been instituted which affords Government spending agencies flexibility in utilizing resources, whilst at the same time, shifting emphasis towards a strengthening of performance orientation, by moving beyond compliance and results.
In this regard, the effective leadership and assistance of the Provincial Treasury contributed positively towards fostering prudent financial management in the Province.
The fact that the Free State province experiences effective and appropriate service delivery even in the face of strong and growing demand for variety of social services, stands as testimony that this Department's efforts to create collaborative and innovative policy solutions to foster this Government's citizen-centered approach to service delivery, is beginning to pay dividends.
Over the past few years, enormous improvements in the overall financial management of Departments were evident, and this contributed positively to a situation where we now have institutionalised:
The alignment of budgets and strategic plans with measurable objectives;
The practice of actively and continuously managing the budget and monitoring the use of resources for service delivery throughout the year;
Procedures and practices to avail financial and non-financial information to the Provincial Executive Council and the Provincial Legislature on what has been achieved in the Province against originally set service delivery objectives.
Turning to specific areas of operation, the following serve as examples of recent achievements by the Provincial Treasury:
Bursary audit completed.
Department registered with SARS in terms of training and development, and levy number provided to Public Service Sector for Education and Training Authority and the Financial Accounts SETA.
Computer audit done for Department.
New budget formats tabled in Legislature, which seeks to ensure a close relationship between strategic plans and budget allocations.
Infrastructure model introduced to enhance planning and managing of capital expenditure.
3 - year provincial transfers to Municipalities gazetted, to promote certainty in respect of allocations so as to enable Municipalities to plan budgets over a multi- year period.
Separate paymaster general accounts opened for Provincial Departments and process of cash sweeping introduced to enhance interest earnings on the Provincial Exchequer Account.
Managed to exceed revenue targets over a number of years.
Decentralized Face Value documentation to Departments.
Revenue collection policies and monitoring strategy in place in all revenue collecting Departments.
Switched over to own E-mail service.
Implemented new LOGIS stores in the Province as per Departmental needs.
Captured banking details of all current LOGIS suppliers to Free State Provincial Government.
SAMDI accredited trainer for LOGIS courses successfully trained and formal 3-weekly LOGIS course presented in Bethlehem, Qwa-Qwa, Kroonstad, Welkom and Bloemfontein.
EFT payments increased to 99 % on LOGIS System, reducing the risk of cheque fraud.
Electronic version of suppliers register made available online on the intranet.
Met and exceeded training targets in respect of training in FMS and PERSAL transversal systems.
Core staff of all Departments trained in BAS to ensure successful switchover on 1 April 2004.
Free State Province 1st Province to close financial year on Financial Management System for number of years, and financial statements per Provincial Department compiled on time.
Detailed month-end closing reports made available to all Departments in electronic format, to enhance productivity relating to information management.
Credibility and compliance diagnostic tool implemented to evaluate the credibility of Persal information and compliance to rules and regulations.
Following functions transferred to respective Provincial Departments, namely:
Persal interface;
Telkom interface; and
Tax and deduction function
New advance debtor module implemented to enhance the effective recording and management of debtors.
3. THE 2004/05, 2006/07, MTEF EXPENDITURE PROPOSALS
These few achievements attest to the seriousness with which my Department tackles its central task of promoting prudent financial management of public resources in this Provincial Government.
By the end of the first decade of democracy, my Department has served as an important catalyst to institutionalise:
the alignment of budgets and strategic plans with measurable objectives;
the practice of actively and continuously managing the budget and monitoring the use of resources for service delivery throughout the year;
procedures and practices to avail information to the Provincial Legislature on what has been achieved in the Province against original service delivery objectives set.
I must hasten to say that we should not be quick to pat ourselves on the back because even a fly will not get slapped on its back unless it is clear to observers that it is very serious and committed towards continuing its work.
In the aforementioned regard, the expenditure proposals that I table today, are thus informed by the need to gear the Provincial Treasury to focus on important long-term objectives to enhance the overarching monitoring and evaluation role of the Treasury.
R117,94 million is proposed to be allocated to the Provincial Treasury for the 2004/05 financial year, which is 12.1% higher than the previous year's allocation.
Hereafter, the Budget is expected to grow at a nominal rate of 4.3% to R123,05 million in 2005/06, and a further 5.4% to R129,67 million in 2006/07.
For the benefit of new members in the Legislature and the general public, some of the main services to be rendered by the Provincial Treasury over the 2004/05, 2006/07, MTEF period, include:
Planning and preparation of the Provincial Budget;
Provincial Expenditure and Revenue Management;
Cash flow management and investment of short-term surplus funds;
Oversight over Provincial asset management and procurement practices;
Management and maintenance of Transversal Financial Systems;
Logistics and information technology;
Oversight over Local Government and Provincial Public Entities;
Oversight over the PFMA implementation to realise its long-term objectives in this Province;
Monitoring the implementation of resolutions of the Provincial Public Accounts Committee (PROPAC), to enhance public accountability relating to the use of public resources.Before dealing with the expenditure proposals per programme, I need to indicate for the benefit of the general public, that my Department's strategic plan for the 2004/05, 2006/07, MTEF period was tabled in this House on 27 May 2004.
Like the wise philosophers from the East, we believe that the best helping hand you will ever find is at the end of your arm, and to this extent this strategic plan reflects the readiness of the Provincial Treasury to deliver on its strategic goals and operational mandate, to remain on the road to continuous improvement and to implement new ways of working in the interest of quality service delivery and effective public accountability. More importantly, this plan make it possible for observers, analysts, researchers, commentators and the general public, to gauge realised performance of my Department against actual spending in terms of both the width and quality of services rendered.
3.1. EXPENDITURE ON PROGRAMME 1: TOP MANAGEMENT
This programme focuses on the overall management of the Department and aims to provide strategic leadership through planning, organising and co-ordinating and controlling departmental functions, so as to achieve departmental goals as efficiently, economically and effectively as possible.
Proposed expenditure on this programme for the 3-year MTEF period will be as follows: R7,84 million in 1st year, R8,35 million in 2nd year and R8,81 million in the 3rd year.
3.2. EXPENDITURE ON PROGRAMME 2: CORPORATE SERVICES
Focus areas of this programme include Human Resources Management, Development and Training, Communication, Auxiliary Services, Organisational Efficiency, Performance Management, Special Programmes, as well as advisory services to the Department, especially the MEC and the CEO.
Budgeted expenditure for this programme is as follows:
R14,4 million in 2004/05;
R14,4 million in 2005/06; and
R15,2 million in 2006/07.
3.3. EXPENDITURE ON PROGRAMME 3: BUDGETING AND BANKING SERVICES
Expenditure on this programme will be R5,8 million in 2004/05, R6,1 million in 2005/06 and R6,5 million in 2006/07.
The work of this programme remain key to the operation of Treasury as it is, inter-alia, responsible for:
The alignment of budgets with strategic plans;
Effective monitoring of budget management;
The maintenance of optimum liquidity levels in the province;
Promoting adherence to Provincial norms and standards relating to budget and banking matters.
Important work need to unfold over the next few years in this area of operation to ensure the institution of an even more consultative process to ensure the effective internalisation of the macro-economic fiscal framework and cost-benefit assessment of competing needs in the Executive Council budgetary process.
3.4. EXPENDITURE ON PROGRAMME 4: REVENUE MANAGEMENT
Allocations to this programme will be as follows:
R3,7 million in 2004/05;
R4,4 million in 2005/06; and
R4,7 million in 2006/07.
Responsibilities executed by this Programme will remain important throughout the MTEF period, with its emphasis on:
growing the provincial own revenue base; and
ensuring the attainment of provincial revenue targets,
without unduly increasing the tax burden on the provincial taxpayer.
3.5. EXPENDITURE ON PROGRAMME 5: SUPPLY CHAIN MANAGEMENT (SCM)
Allocations to this Programme will be as follows over the MTEF period:
R4,8 million in the 1st year;
R5,2 million in the 2nd year; and
R5,4 million in the outer year.
The main aim of this programme is to ensure that the Province achieve and sustain sound asset and procurement management practices.
3.6. EXPENDITURE ON PROGRAMME 6: SYSTEMS AND INFORMATION TECHNOLOGY
This Programme manages the implementation, monitoring and maintenance of computerized and Logistical Systems and provides functional support and training to users.
Proposed allocations to this Programme is as follows:
R9,9 million 2004/05;
R10,2 million in 2005/06; and
R10,8 million in 2006/07.
3.7. EXPENDITURE ON PROGRAMME 7: FINANCIAL SYSTEMS
Expenditure on this Programme will be R15,8 million in the 1st MTEF year, R11,7 million in the 2nd year, and R12,3 million in the outer year.
The main objectives of this Programme is mainly to:
Enforce adherence to National and Provincial Treasury instructions, procedures and best practice notes;
Sustain capacity building for system users; and
Ensure effective and efficient control over the clearance and reconciliation of all provincial ledger accounts, the closing of accounting months and the preparation of provincial annual financial statements.
3.8. EXPENDITURE ON PROGRAMME 8: DEPARTMENTAL ACCOUNTANT
This programme is responsible for the sound financial management of the Provincial Treasury as a Department. As such, this programme does not execute Treasury functions per se, but renders a support function to the Provincial Treasury.
R11,3 million is budgeted for this programme in 2004/05, R12,0 million in 2005/06 and R12,9 million in 2006/07.
3.9. EXPENDITURE ON PROGRAMME 9: TRANSVERSAL FUNCTIONS
Proposed allocations to this programme over the 3-year MTEF period will be R20,8 million, R26,4 million and R28,0 million, respectively, which funding will be utilized to ensure effective service delivery in respect of provincial transversal systems.
3. 10. EXPENDITURE ON PROGRAMME 10: INTERNAL AUDIT
Allocations to fund this area of responsibility, which will be fully operational during the 2004/05 financial year, will be R5,0 million in the 1st year, R5,3 million in the
2nd year and R5,6 million in the 3rd year of the MTEF period.
3.11. EXPENDITURE ON PROGRAMME 11: PFMA IMPLEMENTATION
Allocations to this programme over the 2004/05, 2006/07, MTEF years will be as follows:
R3,2 million in the 1st year;
R3,4 million in the 2nd year; and
R3,6 million in the 3rd year.
The work of this Programme remains important over the MTEF period, as it seeks to ensure:
Effective compliance with the PFMA and Treasury Regulations by all Provincial Departments and Public Entities;
The facilitation of appropriate training and capacity building with regard to the implementation of the PFMA in the Province;
The implementation of punitive measures in the event of any persistent and material breach of the PFMA in the Province;
Effective facilitation of Private Public Partnerships in the province.
3.12. EXPENDITURE ON PROGRAMME 12: MUNICIPAL FINANCE MANAGEMENT ACT (MFMA) MONITORING AND PROVINCIAL INFRASTRUCTURE CO-ORDINATION
Allocations to this programme for the respective MTEF years are as follows: R3,1 million, R3,3 million and R3,5 million.
The importance of this programme will grow over the MTEF period, as it aims to promote the institution and implementation of sustainable Local Government budgets and infrastructure co-ordination.
3.13. EXPENDITURE ON PROGRAMME 13: SECURITY
This programme will be operationalised in the 2004/05 financial year, to promote and maintain a condition of security awareness in the Provincial Treasury.
R1,6 million, R1,7 million and R1,8 million will be allocated to fund this programme over the next 3 years.
3.14. EXPENDITURE ON PROGRAMME 14: DEVELOPMENT PROJECTS
The main objective of this Programme commonly referred as the Free State Provincial Development Fund (FSDPF), are to:
Enhance the development, rehabilitation and utilization of provincial productive infrastructure in order to afford domestic and foreign investors comparative and competitive advantages;
Ensure technological progress and assimilation in value-added processing, manufacturing and assembling;
Maximise job creation opportunities in the formal sector of economy sector of the Free State Provincial economy through diversifying and growing the manufacturing base of the Province;
Create and develop new tourism facilities and related infrastructure in the Province.
May I again use this opportunity to stress that these funds are not intended to:
Assist in the establishment of new retailing business or the extension of existing retailing business;
Assist business to repay loans previously incurred;
Funds community-based projects managed by Trusts, Boards, NGO's and CBO's.
This exclusion are necessary to ensure that the funds remains focused on value-adding processing, manufacturing and assembling by private sector operators.
After the 2003/04 Provincial Adjustment Budget, an amount of R50 million was available for expenditure on development projects.
Projects to the value of R38,835 million has already been approved and several others are in the final stages of approval pending inspection of premises and facilities. Though payments made and based on progress in implementing the approved projects, it is envisaged that the full R50 million will be utilized by the end of the second quarter of the 2004/05 financial year.
Such approved projects cover operations as diversed as stationery manufacturing, Information Technology Solutions and Information Technology Training, bottling of wine products, manufacturing of toilet paper and baby nappies, mining exploration, the establishment of an hotel, manufacturing of bricks, establishment of a bakery and manufacturing of paper products and are based in Thaba-Nchu, Harrismith, Welkom, Jacobsdal, Bloemfontein and Brandfort. 250 direct jobs will be created once all the projects are operational.
A further R10 million is set aside for each of the 3 MTEF years, to fund further development projects.
4. THE WAY FORWARD: SOME REMAINING CHALLENGES
The Provincial Treasury's continued inter-action with Provincial line Departments and various external roleplayers and stakeholders, has offered an invaluable understanding of what Free State citizens expect as far as public services are concerned.
This knowledge has enabled the Treasury to continue to meaningfully support initiatives and programmes aimed at advancing the government 's socio-economic transformation agenda within an accountable and transparent framework.
Over the past few years the Treasury made good progress to further consolidate budget and expenditure information, so as to provide the public, elected officials, policy analysts, observers and Government officials, with comprehensive and up-to date information on the use of provincial public resources.
The availability of such information went a long way in enabling the Provincial Legislature and the Provincial Executive Council to be in a position to gauge the appropriateness, effectiveness and efficiency of public spending in meeting the objectives and priorities of the Free State Provincial Government. This work also produced tangible results in provincial expenditure management, with prevailing budget trends over the past few years as well as the 2004/05 provincial budget proposals, clearly demonstrating the provincial focus on pro-poor programmes to give effect to the people's contract to create jobs and fight poverty, through the consolidation of social services delivery, whilst sustaining increased levels of capital spending and further enhancement of the quality of spending.
Now that the Free State Province has been placed on a firm financial footing, provincial delivery capacity need to be continually bolstered over the next few years to enable the Province to effectively deal with pressures generated from the ever-growing demand for public services.
Arising from this exposι, it is clear that as William Shakespeare wrote in Julius Ceaser, that our future is in our hands and does not lie in the stars. It's therefore wrong to blame our government's progressive labour laws for caring the potential to derail economic prosperity. There is a particular backward political and ideological perspective that informs this argument, which ignores the correlation between the national and class struggles in our society, which ignores the reality of the co-existence in our society of the first economy which is pre-dominantly white and on who as such constitute the class of employer on one hand and the second economy which is pre-dominantly black and constitute the class of workers on the other. The ILO rates our country's labour laws as amongst the most progressive in the world.
The new challenges that the reality of the afore-mentioned pose for the Treasury, is to translate financial management gains into improved service delivery and effective re-dress of inequality.
Further qualitative improvements now becomes essential and this Department position itself to respond to this challenge by inter alia, focusing on the following aspects over the next few years, namely:-
The development and publication of service delivery measures and indicators, to complement and enhance the usefulness of financial information.
Gearing up to oversee and monitor the implementation of financial management and budget reforms in local government, emanating from the promulgation of the Municipal Finance Management Act (MFMA).
Monitoring provincial Supply Chain Management (SCM) reforms, aimed at modernizing procurement practices in the Provincial Government.
Engaging in initiatives to further enhance the provision of verifiable quantitative non-financial information on service delivery by programme and sub-programme.
Supporting respective Departments to effectively implement the Basic Accounting System (BAS), whilst continuing with necessary initiatives to inform the further decentralization of financial management functions to provincial line departments.
Continue with efforts to ensure much more effective provincial oversight over the operations of all Provincial Public Entities, to ensure effective adherence to PFMA prescripts.
The implementation of mechanisms and procedures to ensure more effective and better quality provincial spending on capital infrastructure and the rehabilitation of public facilities and assets.
I want to put on record that it is my contention that the maturing of South Africa's inter-governmental fiscal relations and the contribution of other provincial line Departments in ensuring that effective and efficient financial management and budgeting remains at the center of all provincial operations, will enable the Provincial Treasury to make its contribution in ensuring that the view of Dr Ajar Jammine, well-known economist that 'South Africa is the best place to be over the next ten years,' is realised.
I thank you / Dankie / Ke a leboha
F.K. MORULE
MEC: FINANCE
For more details, please contact
Sub-Directorate: Communication -
Ms. Josephine Kasumba
Private Bag X20537, Bloemfontein, 9300
Tel: (051) 405 4141 / 405 5753
Fax: (051) 405 4194
E-mail: kas@treasury.fs.gov.za
Vrystaat Landbou is die mondstuk van kommersiλle landbouers in die Vrystaat en beding met die owerheid en ander instansies vir sy lede vir 'n beter sosio-ekonomiese omgewing. Landbou is nie net verantwoordelik vir voedsel-produksie in die Vrystaat nie, maar word na die Vrystaat met reg as die voedselspens van Suid-Afrika verwys. In die proses is die landboubedryf die grootste werksverskaffer in die Vrystaat.
Vrystaat Landbou het tans ongeveer 5 000 lede wat by 202 boereverenigings ingeskakel is. Die boereverenigings van 'n distrik vorm die distriksboere-unie (DBU), waarvan daar 62 is. Die DBU's is volgens die munisipale grense van die Vrystaat weer in 20 streke ingedeel, elk met 'n streeksverteenwoordiger wat by die Jaarkongres verkies word. Hierdie streeksverteenwoordigers vorm saam met verteenwoordigers van die bedrywe en die landboubesighede onder leiding van die verkose president (Louw Steytler) en vise-president (Cassie Muller) VL se Uitvoerende Bestuur, wat toesien dat die beleid van VL soos deur die Jaarkongres goedgekeur is, uitgevoer word. Hierdie struktuur word ondersteun deur die personeel onder leiding van die hoofbestuurder (Pieter Moller) vanuit die VL kantoor in Bloemfontein vanwaar lede met toewyding bedien word.
VL is op sy beurt saam met ander provinsiale unies, bedrywe en Landboubestuur by Agri SA geaffilieer wat landbousake op nasionale vlak aanspreek.
In die Vrystaat is talle kritieke uitdagings die afgelope eeu aangespreek. Vrystaat Landbou was van 1904 tot 1999 bekend as die Vrystaatse Landbou-unie (VLU) en sedertdien as Vrystaat Landbou (VL). Na die Anglo Boere-oorlog moes landbou weer van die grond af opgebou word. Klimaatgewys was daar droogtes waarvan die 1933 droogte een van die ergstes was en armoede was 'n ernstige probleem. Koφperasies het as die besigheidsarm van georganiseerde landbou tot stand gekom en vandag is meeste van hulle in landboubesighede omvorm.
Die Grondbewaringswet is ingestel om natuurlike hulpbronne te beskerm en te help bewaar. Weens die wisselende SA klimaat moes die Regering oor die 100 jaar telkemale ingryp met hulpmaatreλls veral gedurende droogtetye. So ook is hulp na die ernstige vloedskade van 1988 gegee.
Veiligheid het 'n ernstige probleem geword. Die muur van Herinnering op die Nampo Oesdagplaas in Graan SA is 'n stille getuienis van die ongeveer 1 500 boere en hulle gesinslede wat veral sedert 1994 vermoor is. Dan is daar ook die uitdaging van grondhervorming met die Regering se mikpunt dat 30% van landbougrond teen 2015 in die hande van opkomende boere moet wees. Grondbelasting is ook 'n groot uitdaging. VL se standpunt is dat dit vir landbouers bekostigbaar moet wees, anders kan dit hulle voortbestaan ernstig bedreig. Die nuutste uitdaging vir landbou is vervat in die konsep handves vir swart bemagtiging, bekend as Agri BEE (Black Economic Empowerment for Agriculture).
Nadat die kantore van Vrystaat Landbou in Bloemfontein vir jare in hul eie gebou in Zastronstraat gehuisves was, is die gebou in 2003 om doelmatigheidsredes verkoop en is VL tans tydelik in 'n perseel te Henrystraat tuis, voordat die organisasie later vanjaar sy nuwe hoofkantoor in Nelson Mandela Rylaan regoor die Universiteit betrek.
Die tema van die 2004 kongres wat 4 - 5 Augustus by Ilanga Estate, Bloemfontein gehou word, is VL gerat vir die volgende 100 jaar / FA in full gear for the next century. Die hoofspreker is Japie Grobler, President van Agri SA en ook 'n Vrystaatse boer. Saam met die kongres vind die Jongboer Konferensie die oggend van 4 Augustus 2004 plaas. Daar word ook 'n opwindende damesprogram vir die afgevaardigdes se metgeselle op 5 Augustus 2004 by Leopards & Lace aangebied.
VL is besig om die Eeufees Gedenkboek op te stel en persone wat oor iets interessant of gedenkwaardigs oor georganiseerde landbou beskik, kan met Lullu de Jager by 083 262 0312 skakel.
Vir enige ander navrae, kan Roselle Louw by (051) 4477 671 geskakel word.
On 24 June 2004 the Mangaung Economic Development Strategy (EDS) was officially launched at a ceremony held at the Oliewenhuis Reservoir, Bloemfontein, attended by representatives from the entire spectrum of stakeholders. The document containing the EDS was made available in detailed as well as abridged versions and is the product of long and in-depth deliberations. A Project Steering Committee, operating under the auspices of the Mangaung City Manager and Executive Management Team was responsible for the project that is funded by the US Agency for International Development.
The EDS, which forms part of the Mangaung Integrated Development Plan, envisages that Mangaung becomes a powerful regional economic centre, a world class African city that is built on the foundation of an inclusive, dynamic, vibrant, sustainable and investor-friendly economy.
Key facts
Key facts borne in the Mangaung EDS are the following :
The total population of Mangaung of some 680 000 is made up of 400 000 in Bloemfontein, 200 000 in Botshabelo and 95 000 in Thaba Nchu.
Relative economic size per centre is Bloemfontein (87%), Thaba Nchu (6%), all reflecting a high level of urbanisation.
The Mangaung economic profile is derived from : Community Services (35%), Finance sector (18%), Trade (16%), Transport (13%), Manufacturing (8%), Agriculture (4%), Construction (3%) and Utilities (3%).
The literacy rate is 78%.
The unemployment rate is over 40%, representing 23% of unemployment in the Free State.
Children under 19 years account for some 37% of the Mangaung population.
In summary, the strengths of Mangaung lies in its regional service centre role, implying development potential in the trade, transport and services sector.
Weaknesses lie in a concentrated economy with high levels of unemployment, illiteracy and poverty.
Current economic growth rate is at about 1,8%.
Mangaung's economy makes up about a quarter of the entire Free State economy and when compared to growth in the Free State Province, the Mangaung economy outperformed the province in all sectors except for agriculture. Sectors showing strong growth in general are transport and finance, while the construction and manufacturing sectors are experiencing negative growth.
The ultimate goal of the Mangaung EDS is to improve the standard of living of the local community by identifying opportunities aimed at addressing job creation and economic growth.
The Mangaung EDS represents the official development policy of the Mangaung Local Municipality (MLM) with regard to economic development within the broader municipal area and provides guidance for the future economic development of the area.
Objective of launch
To :
Develop a popular understanding of the strategy among internal and key external stakeholders (awareness).
Generate buy-in and commitment towards the implementation of the recommendations (public participation).
Provide a process to develop innovative projects in line with the expected outcomes of the strategy (public participation).
Priority projects
The priority catalyst projects identified for short-term implementation are the following :
Planning and facilitation of the N8- Corridor Development with associated industrial development
Formulation and implementation of a Mangaung Tourism Development Programme
Investment promotion (including an incentive and retention scheme)
Mangaung SMME Service Centre development
Development of a Rural and Agricultural Development Programme
Establishment of a Logistics-cum long distance Freight Transport Centre in Mangaung
Copies
Copies of the Mangaung EDS and / or extracts are available in the following formats:
Popular version
Full report
Implementation through networking and partnerships
In order to achieve the set goals, it is essential for all stakeholders - in particular the private sector and labour, together with the Mangaung Local Municipality - to effectively buy-in into the Mangaung EDS and to co-operate in terms of its implementation.
With this view in mind, a Workshop for Stakeholders interested in the catalyst projects is to be held on 15 July 2004 at the Bram Fischer Building, Bloemfontein, from 08h30 - 14h30.
For more information: Contact
MANGAUNG LOCAL MUNICIPALITY
Economic Development & Planning Directorate
Tel: 051-405 8869/8103
Fax: 051-405 8310
Website: www.mangaung.co.za
Soos 'n huiseienaar wat 'n kamer by sy loseerder huur;
Soos 'n besturende direkteur wat by sy werknemer aansoek doen vir 'n pos;
Soos Beethoven wat tou staan vir 'n kaartjie na sy eie konsert;
Soos 'n skoolhoof wat 'n skrobbering kry;
Soos 'n goeie argitek wat woon in 'n krotbuurt wat sy mededinger gebou het;
Soos Picasso wat 'n prentjie volgens die syfers moet inkleur;
- Sσ het God tussen ons kom lewe !
- Uit die publikasie Ora et Labora
The Budget Speech delivered for the Motheo District Municipality by Councillor M. Jobo, Acting Executive Mayor, to Council on 21 June 2004 in Bloemfontein, reflects the policy of the Municipality to execute the mandate given to it in the best interest of the people being served. As such it is truly a budget for the people by the people.
Summarised in a nutshell, the budget for the region with the highest contribution of the five regions to the Free State economy, is prioritising development and, basing it through own-generated funds, on sound financial administration.
This is evident from the following relevant excerpts from the Budget Speech by Clr. Mohapi :
Introduction
We have responded accordingly to a task of ensuring that as a sphere of government, we stimulate conditions for local economic development, provide and facilitate sustainable infrastructure, invest in the development of the people we lead, create a safe and secure environment and uphold good municipal governance for stainable service delivery.
As I present the 2004-2005 budget, we are confident that the lives of the people on whose mandate we act will always be a fountain from which to derive strength and vigor to propel a movement forward in our quest to create a better Motheo, a better Free State and a better South Africa.
Background to the Budget
The latest circular regarding the 2004/2005 Budget was received from the Department of Treasury, and all prescriptions, where possible, were adhered to in this budget.
Care was taken that all the identified projects to fulfil the strategies of the Motheo region were included in the budget. There exist a direct correlation between the 2004/2005 Budget and the revised IDP of the Motheo District Municipality.
The following table and graph show the 2004/2005 budget allocations according to the five strategies identified in the revised IDP.
As can be seen from the above tables, the main contributor to the budget is good municipal governance. This strategy and expenditure had to be budgeted for to meet the Motheo District Municipality's new role as an inter-active and co-ordinating district municipality.
Enhancing local economic development and job creation
During various meetings with all stakeholders it became evident that to enhance the local economy and therefore to create jobs must be the number one priority for the Motheo District Municipality.
Therefore, the Municipality responded and budgeted R4 120 000 toward this important strategy. An increase, from R 934 000 in the 2002/2003 budget, to R4 120 000 in the 2004/2005 budget was the result. The main focus points are:
Local Economic Development
| LED Project support | R 1 550 000 |
| District Economic Development Advisory Forum | R 150 000 |
| Develop a Business Investment Portfolio for Motheo | R 350 000 |
| Implement Agriculture Development Strategy | R 250 000 |
| Facilitate and Research Commercial Brick Making Plant | R 80 000 |
| Land Reform | |
| Facilitate Development of Town Planning Schemes | R 10 000 |
| Tourism | |
| Support to Local Tourism Forums | R 200 000 |
| National and International Exhibitions | R 350 000 |
| Rent / erect Bill Boards | R 250 000 |
| Develop a tourism marketing strategy | R 80 000 |
| Support SMME tourism initiatives and cultural events | R 350 000 |
| Tourism marketing | R 500 000 |
| Total | R 4 120 000 |
| Sanitation | R19 324 000 |
| Water | R 3 955 000 |
| Roads | R17 450 000 |
| Cemetries | R 250 000 |
| Total: | R40 979 000 |
| Mangaung | R7,000,000 |
| Mantsopa | R19,201,010 |
| Naledi | R18,282,950 |
| Kopanong | R2,339,220 |
| Mohakare | R1,142,990 |
| Letsemeng | R1,054,620 |
Rynoe Smith, Advanced Wealth Management, Bloemfontein
For many years we have seen reasonable returns on our RA's, but the expected returns (illustrated returns) do become less and less the closer we get to our retirement date. What is further confusing, is the fact that the returns provided by insurance companies on a regular basis and those calculated by ourselves, do not match! How is this possible?
Lets have a look how this work in practise by using the following example: You invest R1, 000 p.m. for a period of 20 years at a rate of 10% p.a. (CPI + 4%) (compounded). Therefore you expect a future return of R759, 259.
The question that we need to ask is, firstly, how much of my monthly investment do get invested? Secondly, how much of my return do I forfeit towards costs (reduction in yield)?
If your investment company levy an upfront (allocation) cost of 5% and a management fee of 2% pa (including an average fee of 1% levied by the fund manager), only R950 of your R1 000 monthly end up in your investment and your return reduces by 2%. (therefore 10% - 2% = 8%). Now the future value of your investment becomes R540 549 (28, 8% less than expected)!!!
This means that your nett investment return should have been 12.39% to give you the expected gross return of 10%. I include a schedule of the cost structure of the different companies and the effect of their cost structure on their returns. We use the following scenario:
1. The client invests R2, 000 p.m. for a period of 20 years.
2. The client uses only one underlying local fund.
3. Illustrative value 10% (before costs)
The problem regarding these cost structures are that they are not that easily identifiable. Some would appear on the quotation and others not. The only companies that are prepared to mention their reduction in yield, is Momentum, Old Mutual and Sanlam. In an age when legislation and regulation demand transparency, the client is still living in the dark ages. This article might open a can of worms. The most amazing fact is that in obtaining the information, most companies appeared more worried about the correctness of the information of their rivalry than their own!
This brings me to the fact that illustrative values on your policies (RA's and endowments) have become less and less over the last 20 odd years, the reason being that illustrative values 15 years ago were based on the assumpted return of CPI + 4%. In mid 1980's the CPI was ± 16%, therefore the illustrative value's would have been CPI + 4% = 20%.
Now let's take a nett amount of R100 000 that was invested in the mid 80's for a period of 20 years. The illustrative value would be ± R3 833 759 using a return of 20%. Should you use a CPI of 6%, your illustrative value becomes
R672 749 - a reduction of 82, 5%! What you need to take in consideration, is that your real return (Return CPI) stayed the same, viz. 4%. Therefore the buying power of your investment also stayed the same!
For further information contact Rynoe Smith at 051-409560.
So you have decided to add on that extra room or convert your outbuildings into a granny flat, or maybe you are all set to build your dream home. Suddenly you have a thousand important decisions to make, decisions that mean money. Where do you start?
Everyday, hundreds of people build successfully with no problems. How do they do it? The basic answer lies in proper planning, knowing what you want and can afford and using the services of a reputable building contractor.
1. START RIGHT!
First, decide what you want to do. Whether you want to build a house, add on a granny flat, or alter existing buildings, you need to know whether planning permission is necessary. As a rule, you will need plans or planning permission for all building work except minor alterations inside your home. However, check this first, because each Local Authority has different requirements. A phone call or personal visit to your Local Authority at the outset can save you many problems later on. For additions or major alterations, you should ask an Architect or qualified Draughtsman to draw up plans and specifications for the work required.
2. CHOOSING A BUILDING CONTRACTOR
If you do not know a suitable building contractor, talk to friends or neighbours who have had building work done. Better still, ask the MBA-FS for enterprises operating in your area who do the type of job you want.
3. WHAT ABOUT THE PRICE?
Your building contractor will discuss the work with you and give you an estimate of the cost. If you have proper plans and specifications prepared, it is always a good idea to ask for quotations from more than one reputable building contractor. If it is a small job that does not need proper plans, it is essential to provide your builder with a detailed written description of what you want and/or to explain to him your requirements carefully on site, so that he can ask questions. You can then ask him for a detailed estimate in writing. Large contracts can be put out to tender and where work is carried out under the supervision of an Architect, it is wise to be guided by him.
Do not forget, there is a big difference between a cost estimate and a detailed, written offer to carry out the work. Do not sign anything until you are sure that your builder's offer is firm and clear and covers all your requirements.
4. ACCEPTING THE BUILDING CONTRACTOR'S QUOTATION
If you ask more than one building contractor for a quotation, make sure that each one is quoting on the same written specifications and conditions, so that they will all price on
the same basis. Ensure that the question of VAT is clear on the quotation. If the work is extensive, make sure that all quotations are based on model contract conditions. If in doubt, ask the Free State Master Builders Association for guidance. When you have chosen your building contractor, make sure you confirm your acceptance of his quotation in writing.
5. CONDITIONS OF CONTRACT
Sometimes a small job can be carried out without a standard form of contract. A written quotation and a signed acceptance of the agreed price will protect both parties in law. If the work is substantial, it would be wise to ask the Free State Master Builders Association for a model (Building Contract) which is approved by the Building Industries Federation (South Africa). These are well established and ensure a fair deal for both parties.
In any event, do not start work without a definite written agreement, which sets out clearly what has been agreed, as well as the rights and obligations of both parties to the agreement.
6. INSURANCE
Before starting any building work, check that your building contractor is covered by the appropriate insurance, such as Public Liability and Contract Works Insurance. It is also essential to inform your own insurance company you are having alteration work or renovations done and to make certain that you have suitable insurance.
7. BEFORE THE BUILDING WORK STARTS
Before any work is started, discuss questions such as storage space for materials, the provision of a place for workers to have their meals and use of ablution and toilet facilities. You will also need to be sure of arrangements for the supply of water and electricity while work is in progress. Once again, proper planning before you start work can save you and your family a great deal of possible inconvenience.
8. ORDER OF WORK AND REMOVAL OF DEBRIS OR WASTE
To avoid unforeseen problems, discuss the order of work with your building contractor first, so that the necessary rooms or spaces can be cleared, items stored away, dust sheets laid over furniture etc. Your contractor should clean up during the work and when the job is complete. Do not forget to discuss the question of a convenient place for debris and rubble and confirm who is responsible for its removal.
Make yourself aware of the local by-laws regarding noise, dust, litter etc. Remember that building operations may cause a nuisance to your neighbours and damage the environment.
9. EXTRA WORK / VARIATIONS
There should not be any extra work needed if your initial specification covered everything. It is best to try to avoid changes, because extras and/or variations can be expensive. Where they are necessary, establish the costs before the work is carried out and do not forget to confirm any changes in writing. Always give your instructions to the building contractor and not to the worker on site. This will ensure good communication.
10. PAYMENT
As a rule, you should not be asked for any payment before the work commences. Beware of the builder who asks for money upfront for whatever reason. You could be heading for problems. If the job is large and you have a contract agreement, you will probably be required to pay interim amount on completion of certain sections, as specified in the contract. For a small job, you will normally only pay one lump sum when the work is satisfactorily completed.
11. FINAL INSPECTION
When the work is complete, inspect it with your building contractor, who may ask you to sign that the work is complete. If you have any doubts about any part of the job that cannot be put right straight away, it is essential to make your comments in writing immediately.
12. DEFECTS
As a consumer you are protected in law against any defects, which may appear within a reasonable time after the building is finished. Be sure to put your complaints in writing as soon as any defect becomes apparent. Model forms of contract such as those available from the MBA Free State protect the consumer against patent defects, i.e. where materials or workmanship deviate from the specifications set out in the initial agreement. To avoid problems, discuss this aspect of the agreement with your builder before the agreement is signed. Make sure you both understand your rights and obligations.
13. COMPLAINTS PROCEDURE
If you have any problems with the building work that you cannot solve easily, there are people who can help. If the building contractor is a member of the Free State MBA, write to the Association stating clearly your complaint. Be as clear and concise as possible and suggest a solution that you would find acceptable. The Association will contact the member and ask him to give attention to your complaint. If the matter is not resolved, the Association may also help with mediation and dispute resolution procedures if a member is involved. It is a good idea to keep copies of all correspondence and relevant documents.
If the builder is not a member of the Free State MBA, you can contact the Consumer Council for advice. Sometimes a consumer journalist of a local paper might be able to help. Nobody likes bad publicity. If the dispute involves a small amount, the Small Claims Court may be able to help.
14. A FINAL WORD OF ADVICE
Remember that a good building contractor values his reputation as much as he does his satisfied clients. As a professional, he will be as keen as you to see that the work is done properly. However, do not forget that even the most skilled person cannot do a good job for less than its true price. In the end, like everything else, you get what you pay for.
MOVING IN
Inspection on entry: When you move in, it is important to inspect your new home carefully, paying particular attention to:
· all sanitary ware, including the bath
· all glass
· floor and wall tiles and splash backs
· whether any extras you ordered have been provided
· whether all services are operating properly
· whether you have keys to all the locks and they work
Make sure that you know where the various stopcocks and main electrical switches are located. Ask your builder for this information as soon as possible.
Check the garden area to make sure that:
· the boundaries are correctly and clearly marked
· it has been cleared of debris
· garden soil, paths and driveways adjoining the house are about 150mm below the damp proof course which is normally situated at floor level.
If any of the above is not satisfactory, write at once to your builder. Do not rely on verbal comments to site personnel.
To avoid delays in dealing with outstanding items, follow the procedure outlined in the contract agreement.
You may be asked to sign a form stating that you have inspected the work and that everything is in order. This is reasonable because the time to report a crack in a pane of glass or a chip in the bath has to be on the date of entry. Later on, it will be impossible to say who caused the crack or the chip. However, signing such a form should not take away your rights to have your builder put right defects that may develop later on or those that could not reasonably be seen on initial inspection.
The standards to which you are entitled have to be reasonable and are those, which an average tradesman should achieve. Your builder cannot be required to put right insignificant defects, which can only be identified on very close scrutiny, this would be unreasonable.
RUNNING - IN YOUR NEW HOME
Your new home needs to be run-in gently for the first few months. This is because concrete, bricks, timber, plaster, and other materials have all absorbed water during construction.
There is still a great deal of moisture around when you move into a new home. You may not feel it, and it will certainly not do you any harm, but it does need to evaporate slowly and be ventilated away.
DRYING OUT
Running - in a brand new home means drying it out gradually as the home is lived in, timber and plaster will almost inevitably shrink, causing small cracks to appear. These cracks are not structurally important; they are cosmetic and can be permanently cured in the normal process of redecoration. However, because such minor cracks are inevitable; your builder cannot be bound to rectify them. It is in your own interest, therefore, to follow the advice given here.
To minimize cracking, try to keep a reasonably even temperature so that the building structure dries out gradually.
As the building dries out the evaporated moisture needs to be ventilated away.
To minimise problems from dampness and condensation
· ventilate your home by leaving windows open for as long as possible as you can each day.
· leave internal doors of built-in cupboards open to encourage air circulation during the running-in period.
EFFLORESCENCE
Another consequence of drying out may be the appearance of a white deposit on inside or outside walls, called efflorescence. This is caused by natural salts coming out of the materials in the wall and is quite normal. Salts on external walls will eventually disappear; those on internal walls can be wiped or brushed away. If efflorescence persists internally, it may indicate a water leak, in which case you should contact your builder.
PREVENTING CONDENSATION
Condensation is steam or water vapour, which reverts to water on contact with colder surfaces. Even before water vapour condenses, it can sometimes cause mould on walls and ceilings. If allowed to persist mould can damage clothes, bedding, floor coverings, curtains etc. Once the construction materials have dried out you should no longer experience condensation or mould problems.
However, remember that normal daily activities produce a great deal of water vapour, which will aggravate your attempts to dry out the building.
Make sure you control the amount of water vapour you produce by:-
· covering pans whilst cooking and not leaving kettles boiling
· putting washing outside to dry. If you have a tumble drier, add a flexible duct to ventilate the moist air to the outside (unless you have a self condensing type) D.I.Y. kits can be obtained for this
· stop moisture spreading by keeping kitchen and bathroom doors closed whilst cooking, washing, bathing and drying clothes.
· Ventilate moisture away whenever possible by opening windows.
TAKING CARE OUTSIDE
· Tiles on sloping roofs are brittle and easily cracked. They will only take a persons weight when great care is taken.
· Anyone working on the roof (e.g. to install a TV aerial) must use a roof ladder.
· Do not allow persons to use any flat roof area for access without protecting the surface from ladders and other equipment.
· Stone chippings on a flat roof are to protect the waterproofing membrane from sunlight, do not remove them.
· Clean out gutters at least once a year to prevent blocking up. Wet patches on the walls below can be an indication that the gutters or down pipes are blocked and are overflowing.
· Take care when placing ladders against plastic gutters and down pipes. It is advisable to use a ladder with an extension bracket in this situation.
PAINTWORK
Outside woodwork should be regularly repainted or retreated to preserve this wood.
The first repainting outside will probably be needed within two years, but after that provided it is property done - repainting may only be necessary every four or five years. You may need more frequent repainting if your home is near the sea.
MANHOLES
Manholes give access to the drainage system, usually where branches join. Ask your builder to locate them for you. Do not obstruct or cover them with soil. You may need to get access to them quickly if there is a blockage.
PATHS
Do not be too concerned if paths or paving develop minor cracks as the ground slowly settles during the first two or three years.
DAMP PROOF COURSES
If soil or other garden material is piled up against the outside walls of the building, it may over the damp proof course and cause rising damp. If you are not sure where the damp proof course is your builder will show you it is normally at floor level.
Keep soil at least 150mm below is.
Paths beside the home must also be about 150mm or two brick courses below the damp proof course and slope away from the home to prevent puddling of rainwater.
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