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Current Edition >> Archive Section >> Special Features >> 1 - 15 March 2004


Meeste Toyota's nog !

Op Saterdag 14 Februarie 2004, as deel van 'n groot gemeenskapsfees op Koppies, is gepoog om die meeste Toyota-voertuie nog buite 'n Toyota-fabriek bymekaar te kry. Die poging het 'n totaal van 523 Toyota-voertuie - van enige tipe of model - byeen gekry, soos op hierdie unieke lugfoto gesien kan word. Die foto is geneem deur Ernst Zitske van Koppies. Aangesien geen vorige sodanige rekord bekend is nie, is amptelik aansoek gedoen dat hierdie 523 voertuie in die Guiness Book of World Records opgeteken word. Volgens die sameroeper van die die Koppies Fees, ds. Johann Reyneke, word beplan om die Toyota-rekord volgende jaar te oortref en dit weer deel te maak van 'n jaarlikse Koppies Fees ten bate van die hele plaaslike gemeenskap. Ds. Reyneke kan gekontak word by 082 331 5479.


Ladybrand


Sheltered in the rocky sandstone niche of the high ridge known as the Platberg, Ladybrand is a bustling town in the Highlands of the Eastern Free State. The town is characterized by sandstone buildings, many of which have been restored from yesteryear. Founded in 1867, Ladybrand today has a total of some 30 000 residents - approximately 6 000 in traditional Ladybrand and approximately 24 000 in Manyatseng township.
Amidst it's scenic surroundings, Ladybrand is supported by a strong agriculture district consisting of mixed farming. The influence of Lesotho only some 7 kilometres away is another dominant factor regarding Ladybrand, with a lot of cross-border trade and business taking place and with many people working in Lesotho but residing in Ladybrand.
This results in a thriving business and retail sector in Ladybrand and with property prices amongst the highest in the Free State. Another salient feature is the highly cosmopolitan character of the town, covering many nationalities.
Ladybrand falls under the Mantsopa Municipality with it's head office at Ladybrand and which includes also the towns of Hobhouse, Excelsior, Tweespruit and Thaba Phatswa. Ladybrand is also an integral part of the Maloti Route stretching from Kwazulu-Natal via the Eastern Free State, the Motheo region and the Eastern Cape highlands into Lesotho.

Ladybrand Motor Engineering : Moderne familiebesigheid
Hoewel reeds 27 jaar in bedryf as 'n familiebesigheid, het Ladybrand Motor Engineering tred gehou met ontwikkeling en tegnologiese vooruitgang en beskik die firma vandag oor een van die beste automotiewe ingenieurs-werkswinkels in die Vrystaat en Lesotho. Hennie Bekker en sy seuns Fanie en Hennie jr., tesame met hul neef André Scheepers, spesialiseer in alle motoringenieurswerk, die herbou van petrol- en dieselenjins en alle masjieninstandhouding. Daarvoor beskik hulle oor die nodige vakkundigheid, opleiding en ervaring, terwyl die werkswinkel van Ladybrand Motor Engineering toegerus is met die beste masjiene en apparaat vir hul bedryf. Hulle het bv. onlangs uit die VSA 'n Miller aluminium sweismasjien ingevoer, wat van sy soort tans die enigste in Suid-Afrika is. In beheer van die kantooradministrasie van die onderneming is Cynthia Bekker, Hennie se eggenote. Hennie sê die tegnologie en daarmee saam verbruikersvereistes verander vinnig en as besigheid moet jy sorg dat jy tred hou. Hy sê hulle bedank graag al hul kliënte vir die gewaardeerde ondersteuning deur die jare en hulle verseker almal wat hulle besoek of kontak, van die beste beskikbare diens in hul bedryf.

Healthy business climate
To gauge the business and investment climate at Ladybrand, the Free State Business Bulletin spoke to the chairperson of the Ladybrand Chamber of Business, Mr. Leon Tromp and the deputy-chairperson, Ms. Rina Facta. They said that a key element concerning Ladybrand is the good relationship and goodwill existing between the Mantsopa Municipality and the private business sector. The two sides consult with each other and the Chamber in particular sincerely appreciates the positive and constructive attitude of the Mayor, Councillors, Municipal Manager and staff. The Mantsopa Municipality is also one of the few Municipalities in the Free State with a credit balance and was awarded as one of the best Municipal administrations in the Free State.
Tromp and Facta said that the level of business intensity at Ladybrand is high and that ample investment opportunities are awaiting exploration. Particularly tourism is gaining momentum and the some 15 guesthouse in town show a bed occupancy rate of over 80%. In order to boost business in and around Ladybrand further, the Chamber with it's 53 members has taken the initiative to expand the annual Two Nations Marathon between Ladybrand and Maseru into a full-blown three-day Two Nations Festival, scheduled this year for 16-18 September 2004. Day 1 is to focus on agriculture and local exibitors, day 2 on cycling events and day 3 on the marathon.
For more info, Leon can be contacted on 082 773 6225 and Rina on 082 578 2967.

Ladybrand Primêre Skool : Trotse bate vir die dorp
In die progressiewe gemeenskap wat Ladybrand is, vervul Ladybrand Primêre Skool al vir dekades 'n unieke opvoedingsrol en dien dit as 'n voedingsbron van onskatbare waarde. Vir geslagte al het burgers wat hul plek in die samelewing vol staan en die leiers van vandag en môre is, hul beslag in hierdie skool gekry. Met die staatkundige aanpassings wat Suid-Afrika veral die afgelope 10 jaar gemaak het, het Ladybrand Primêre Skool tred gehou en vandag is die skool met sy 500+ leerders en 30 personeellede steeds 'n toring van krag, nie net op die dorp nie, maar ook in die provinsie.
Sopas het die skool op die gala-aand van die Motheo Onderwys Distrikskonferensie gehou op 4 Februarie 2004 te Bloemfontein, 'n toekenning ontvang vir konstante instandhouding en verbetering van kwaliteit onderrig - die enigste primêre skool wat so 'n eer te beurt geval het.
Die vakverskeidenheid by Ladybrand Primêr is die maksimum moontlik, terwyl die fasiliteite en infrastruktuur van die skool van hoogstaande gehalte is. Onderrig is parallel medium, met 'n sterk eie voorskoolse Graad R-klas. Dit beskik ook oor 'n skool vir leerders met spesiale onderwysbehoeftes vanaf Graad 1 tot 10. Sportprestasies is legio en die skool het gereeld verteenwoordigers in provinsiale en selfs nasionale skoolspanne. Kultuuraktiwiteite geniet hoë prioriteit, terwyl spesiale aandag gegee word aan die ontwikkeling van entrepreneursvaardighede en deelname aan ekstra-kurrikulêre aktiwiteite soos wetenskapekspo's, opvoedkundige toere en die Oktoberfees van die skool.
Vir die afgelope 14 jaar is mnr. Xander Fenwick die hoof van die skool, wat al vir 'n totaal van 31 jaar aan die skool verbonde is - sy hele onderwysloopbaan. Onder toesig van 'n dinamiese beheerliggaam word die skool op gesonde lewens- en finansiële beginsels bedryf en is die hoof en skool trots op wat vermag word. Gelukkige kinders met gelukkige ouers is die beste getuigskrif wat 'n skool kan hê. Ladybrand Primêr handhaaf ook goeie betrekkinge met alle skole in en om Ladybrand en neem dikwels die leiding in die reël van sirkel- en streeksportbyeenkomste. Skole van elders in die land ding graag met Ladybrand Primêre mee en ook vanweë sy natuurskoon is Ladybrand 'n gewilde besoekpunt op die reisplanne van skooltoergroepe.
Mnr. Fenwick en sy personeel bedank graag die beheerliggaam, al die ouers en die Ladybrand sakegemeenskap vir hul lojale en entoesiastiese ondersteuning - 'n spanpoging waarsonder die sukses van die skool nie moontlik sou gewees het nie.

Advantages of non-conbustable energy
Visitors to Ladybrand may be surprised to see the many solar water heaters on roofs, making the town one of the most solarized places in SA. This is due to its resident solar energy specialist, Willi Sureman, doing business as Willi's Energy Savers (WES). Since 1980 this reliable business has offered good products and services in a wide range of solar energy equipment, including solar electric lighting and pumping, solar building heating, fruit drying, cooking and water distillation. As a member of the Sustainable Energy Society of SA (SESSA), Sureman is one of only five solar specialists in the country.
With the damaging effects of climate change from air pollution becoming increasingly evident, the world is rapidly moving towards extensive use of solar energy in many applications, from rural electrification via hot water to major solar electric and solar thermo-electric power plants. Currently 90% of energy is derived from fossil fuels such as coal, oil and natural gas - in contrast to renewable fuels such as solar and wind. Since fossil fuels is, however, running into a global environmental crisis, Sureman with his 32 years' of experience in the industry, says solar is unavoidably the power of the future.
Sureman can be contacted at (051) 924 3038.

Newvale interesting history
The guest farm Newvale, 12 km from Ladybrand on the Tweespruit road, has an interesting history. Located on the southern woody slopes of Platberg and with a picturesque view deep into Lesotho, four French missionaries, James Francis & Agnes Göring and Emile & Pauline Keck, founded a mission station, hospital and church on the farm in the 1890's. They were preachers as well as medical doctors and their congregation was popularly known as the "Göring Church".
The present homestead with its ample bedrooms served as the hospital. By 1930 the mission station was moved to Lesotho (then Basutoland) and in 1936 Newvale was bought on auction by Mr. Jan Albert Oberholzer. The current owners of Newvale is Gordon and Rosemary Bentley, while Newvale Guest Farm is being managed by Dave Malan (cell no. 083 451 0643). The graves of the Görings and Kecks are still in well-kept condition at Newvale, with the tombstones indicating their various years of death in the early 1930's.

Bulletin op Ladybrand
Die gereelde verspreiding van die Vrystaat Sake Bulletin die afgelope sewe jaar op Ladybrand word gekoördineer deur mnr. Xander Fenwick, hoof van Ladybrand Primêre Skool. Die koerant word geplaas by 'n aantal spesifieke besighede en ander verspreidingspunte. Persone wat nog nie die koerant ontvang het nie maar dit graag so sou wil reël, kan mnr. Fenwick skakel by (051) 924 2049 (ure) of 924 2581 (h).


Talking straight on local government


MEC for Local Government & Housing Lechesa Tsenoli answers to questions on burning issues such as the financial status of Municipalities in the Free State, the situation with local economic development and the provision of housing.

With some of the 25 municipalities in the Free State said to be technically bankrupt, a number of senior municipal officials suspended or discharged on allegations of maladministration and/or misconduct and with outstanding dues running into hundreds of millions of rand, local government in the Free State is assumably in a crisis.
Consequently, local economic development (LED), which is supposed to be the basic creator of economic growth and job opportunities at local level, is suffering. In fact, LED in the Free State's rural and urban areas is either taking place quite haphazardly or is even non-existing, to the serious detriment of the standard of living of the local population. Of course there is also the positive side - evidence of municipalities making ends meet, instances of viable LED, etc. - but on the whole the perception is that the Free State is experiencing a crisis at local government level.
Against this background, on 11 and 12 March 2003 the first ever Local Economic Development Summit for the Free State is to take place at the MUCPP Centre, Mangaung - thus an event of crucial importance. In order to obtain more light in this regard, the Editor of the Free State Business Bulletin, Dr. Johann Dannhauser, approached the MEC for Local Government & Housing, Mr. Lechesa Tsenoli, with the following pointed questions, to which Mr. Tsenoli replied as indicated below.

Mr. Tsenoli, quite a number of municipalities in the Free State are technically bankrupt. Municipal payments are in arrears and many people are complaining bitterly about deficient service delivery at local government level in the Free State. Why does such a situation persist and how does your Department see the way out ?
Let me firstly deal with the creditors position of Municipalities in the Free State. The financial position in the majority of municipalities in our province has stabilised. This observation will be supported by providing an account of how these municipalities have fared in developing their budget, compiling financial statements, balancing their bank and cash books, managing cash-flows, investment, creditors and debtors management. Certain positive features emanated from the R 70 297 802 creditors' situation of Municipalities in the Province. It is encouraging to note that in comparison to the situation in December 2001, no Municipalities are presently in arrears with ESKOM.
With regard to the respective Water Boards, the outstanding arrears of R18 655 959 is largely represented by the R9 562 470 that are owed by Matjhabeng, R4 541 921 by Kopanong and the R 2 636 808 by Metsimaholo over the period of 30 days and more. It is further positive to reflect that in December 2001 Municipalities owed SARS R15 132 000 in comparison to the R4 672 056 due at the end of September 2003. At the end of March 2003, R15 800 000 was due to the Auditor-General compared to R 10 780 227 at the end of September 2003. The high arrears situation is largely attributed to the auditing backlog resolved by the Auditor-General in fast succession over the past two years, which resulted in a higher financial burden on client Municipalities.
The R26 600 000 at the end of March 2003 that are due to third parties in respect of arrears salary deductions, represents the remaining bulk of creditors, but has since decreased to R21 691 745 at the end of September 2003. The R25 011 000 in respect of trade creditors due at the end of March 2003 also reflects a downward tendency and amounted to R14 497 815 at the end of September 2003. The Nala Local Municipality is responsible for R4 143 086 of this amount, the Kopanong Local Municipality for a further R1 317 233, the Mohokare Local Municipality for R3 567 424, Matjhabeng Local Municipality for R 4 143 086 and Moqhaka Local Municipality for a further R1 345 174.

Secondly, as far as the cash position of local and district municipalities are concerned, the following should be noted :
Positive and negative cashbook balances are divided amongst Municipalities on an almost 50/50 basis. Of the 20 Local Municipalities, 11 disposed of positive bank balances which totalled R103 215 507 as at the end of September 2003 in comparison to the 9 Municipalities with negative bank balances that amounted to R14 201 987 on the corresponding period. 15 Municipalities had negative cashbook balances totalling R63 213 330 at the end of September 2003, while the remaining 5 positive cashbook balances amounted to R81 579 692. The position in relation to bank and cashbook balances reflects a relative constant tendency over time. It is the general impression that where Municipalities are utilising overdraft facilities they tend to manage these within the approved limits.

Thirdly, a word about investments by Municipalities. The investment situation is dominated by the Mangaung, Matjhabeng, Metsimaholo and Maluti a Phofung Local Municipalities whose investments represents 90% of all municipal investments in the Province. It is significant to note that these Municipalities have increased their investments with approximately R65 000 000 between June 2002 and June 2003. However, over the same period the municipal investments for the rest of the Province increased with approximately R22 800 000. Allow me also to mention that over the past three years my Department has in partnership with the Department of Provincial & Local Government implemented a Management Support Program aimed at supporting District and Local Municipalities with severe financial and/or capacity constraints.
Several projects that should have a positive impact on liquidity and revenue enhancement were also implemented and funded. These include amongst others creation of customer care centers, data purification on debtors systems, implementing debt collection systems, compilation of valuation rolls for new jurisdictions, etc. Despite these positive transformations, district and local Municipalities are still facing challenges such as stringent credit control systems, amalgamation of total municipal administrations, challenges brought about by the promulgation of Municipal Finance Management legislation, etc.
Over a period a number of Municipalities in serious financial difficulties were assisted to meet obligations to creditors in emergency situations. These include settling arrears accounts of suppliers of bulk services such as ESKOM and the respective Water Boards, arrears salary transfer payments, etc.
To sum up: At times, the situation may seem bleak, but there is definitely light at the end of the tunnel !

LED in the Free State - or rather the lack of it - is said to be the greatest contributor to unemployment and stagnant economic growth at many Free State towns and even in urban areas. In a nutshell, your assessment please ?
To answer the question, let's first remember that LED is an approach towards economic development, which allows and encourages local people to work together to achieve sustainable economic growth and development thereby bringing economic benefits and improved quality of life for all residents in a local municipal area. Therefore the success of LED relies heavily on the involvement of local government, local citizens, local business communities and other partnerships. Such a brilliant concept requires collective effort. Thus LED is the responsibility of everyone, which means that its success or failures remain a challenge to each one of us.
From the side of the Municipalities, I can categorically state that they are working extremely hard to stimulate local economic development. They are making an effort to form partnerships; create a culture of enterpreneurship; encourage a paradigm shift away from historic economic subjugation; address the infrastructure backlog; encourage outside investment and encourage skills development. I am confidently expecting that these endeavours by the Municipalities will start to yield fruit soon. The government, the local citizenry and the business sector have to walk this path together, hand-in-hand.

By way of key statistics, please give us a brief overview of the provision of housing in the Free State as far as your Department is concerned ?
In 1994 the housing backlog stood at approximately 300 000, while according to the 1996 census it was 291 215 units. Since then 90 301 units have been either built or improved in terms of various existing instruments. In addition a number of 24 776 houses were transferred to beneficiaries through the Discount Benefit Scheme. In total 115 077 units have been transferred to beneficiaries in the province from 1994 to January 2004, amounting to more than R1 617 834 421. This huge investment has brought in its wake several spin-off's. Innumerable jobs have been created. Building contractors and material suppliers seem to be doing quite well. Secondary companies feeding from the secondary products sought by and/or installed by the housing beneficiaries also derived benefit from the low cost housing industry, eg. electrical appliances, furniture, etc.
Moreover, the level of crime in informal settlements was reduced significantly after the erection of formal housing units. Indeed, material supplying companies have acknowledged that low cost housing development has become the major market. A lot of new jobs have been created by the low cost housing industry impacting positively on the social standards of the beneficiaries.
Despite the inroads that the Department has made in reducing the housing backlog, a number of significant challenges remain. The first of these is the quality of housing units. Houses built from 1997 are of fairly better quality than those built prior to that year. Ever since the Department started to enforce the issuing of the “Happy Letter” on completion of a house, the quality has improved markedly. Moreover, the Department has embarked on interventions aimed at further improving the quality of houses by beefing up its Technical Staff component responsible for inspection. Bigger houses are being built under the PHP programme. There is a marked improvement in the internal finishes in all houses. The addition of Cuban professionals (civil engineers and architects) in our team is certainly a blessing. The most prized expertise that these professionals possess is their indepth and intensive knowledge and experience in 'community engineering'. They have even compiled a manual entitled "How to build my house myself", which will be launched in SeSotho, Afrikaans and English soon. Additionally, the Construction Education and Training Authority (CETA) is assisting ably with intensive training in bricklaying, masonry, and other relevant skills.

Another major challenge is the lack of capacity by municipalities to handle housing-related issues. However, my Department has established a partnership with the DBSA with a view of enhancing institutional capacity, including the compilation of Housing Sector Plans in 15 municipalities. A further challenge is that we still come across Municipal areas that have not opened a township register, thus making it difficult to register properties at the Deeds Office. We are addressing this. There are other challenges the Department is faced with and these include: Lack of clarity/knowledge on ownership of available pockets of land for housing development / Inaccessibility of bridging finance by SMME's / Lack of project management skills by SMME's / The problem of completed but unoccupied houses in a number of areas / Etc.
However, I can assure you the Department is diligently addressing each and everyone of these issues and it is indeed recording factual progress.
Dikgomo !

The coming Summit on LED in the Free State 11-12 March 2004 - what, in a nutshell, can be expected as the major focus ?
According to its scheduled program, the Summit has an uniquely comprehensive focus and as a first ever for the Free State, is of ground-breaking importance. We are world-renowned speakers and I am confident that we are embarking on a process that will usher in a new, exciting and constructive phase in LED in the Free State.


Transport in the Free State for 2004

Background
Situated right in the centre of South Africa and sharing boundaries with six other provinces and Lesotho, the Free State covers an area of 129 437 km² - as such the third largest province in the country. The road network in the Free State consists basically of the following:
• 20 52 km tertiary roads, which are mainly farm and community access roads • 21 470 km secondary gravel roads, which link communities with towns • 6 965 km primary tart roads, which link towns and cities with each other and which also handle inter-regional traffic • 910 km national roads of which 25 km are not tarred • 1 539 large bridges
Against this background and considering the pulsating economy operating within the Free State, it is clear that the transport industry in the province is of cardinal importance. Pres Kennedy of the USA once observed: “It is not our wealth which has built our roads, but our roads which have built our wealth.” This can equally apply to the transport sector and socio-economic progress in the Free State. In this special feature on transport in the Free State the focus is on transport services for the various business sectors. This relates to transport services for the various business sectors such as commercial, industrial, agricultural, retail and wholesale, mining etc.
In this overview it is mainly service providers to the general business sector as well as to the agricultural sector who are highlighted. All of them have already duly proved their metal some of them for decades. They are transport suppliers who helps the wheels of business and agriculture turn as fast as possible and can therefor be relied on. As such they represent various lines in the transport indestry, ranging from sealed container trucking to low-bed transport and from truck manufactures and dealers to courier services are various kinds, etc.

TATA : Opwindende nuwe toetreder wen vinnig veld
Die TATA groep, Indië se grootste vervaardiger van voertuie, staal, horlosies en rekenaarprodukte, bedien reeds die Afrika-mark vir bykans drie dekades. In 1998 het TATA ook uitgebrei na Suid-Afrika en daar is reeds meer as 10 000 van hul voertuie op Suider-Afrikaanse paaie. Dit is duidelik dat TATA vinnig besig is om 'n sterk markaandeel in die Suid-Afrikaanse mark te wen, met syfers wat toon dat TATA vragmotors tans die vierde beste verkoper in Suid Afrika is. Daarby maak TATA handelaars daarop aanspraak dat geen vervaardiger hul pryse in Suid-Afrika klop nie. TATA voertuie is met handelaarskappe ook in die Vrystaat beskikbaar. Scott Auto bedien sedert Februarie 2003 die Oos- Vrystaat met takke te Reitz en Bethlehem onder bestuur van Greg Scott, wat al meer as 25 jaar ondervinding in die motorbedryf het. In Januarie 2004 het Kevin Scott ook TATA Truck and Bus in Bloemfontein geopen, wat die sentrale streek bedien. Die twee broers se handelaarskap is deel van 18 TATA handelaars landswyd.
Volgens Greg Scott is TATA reeds baie gewild onder vleis- en broodverspreiders. Afgesien van die verkoelde weergawe en die broodbak, is alle modelle ook beskikbaar in platbak en verseëlde bakke. Aldrie takke in die Vrystaat hanteer verkope, diens en verskaf ook onderdele. Die ten volle opgeleide span verkoops- en tegniese personeel staan gereed om u van diens te wees.

Vital role
South Africa's transport services industry which, at last count, employed more than 150 000 people, plays a vital role in economic development of the country. Indeed, the Railroad Association of South Africa (RASA) estimates that the sector generates more than 10% of the country's GDP which, in rand terms, is equal to about R75-billion.

Vital link
Production and consumption on the scale and tempo of today, would be inconceivable without a well-developed and operated transport system that forms a vital link in supply chain management logistics. RASA points out that the fundamental function of an effective transport system is to stimulate the development of the national economy by transporting goods and passengers at minimum cost.

Essential component
Efficient transport is an essential component in the production and distribution process - commonly referred to as supply chain logistics. Increased transport efficiency contributes directly towards containing and even lowering total production costs. Consumption and production is encouraged, and lower cost structures facilitate domestic competition and make South African exports more cost-attractive - particularly important in the world of competitive globalization.

Operating conditions
A major problem to confront road freight operators in South Africa is the introduction of high-tech trucks. New generation vehicles are seen as too sophisticated for harsh, local operating conditions. Truck operators may need to reconsider the type of medium commercial vehicles (MCVs) and heavy commercial vehicles (HCVs) they buy due to their purchase and maintenance costs. MCVs have a gross vehicle mass of from 3,5 to 7,5 tons and HCVs from 7,5 to 20-plus tons. In additions, operators may also have to take into account operating trucks more appropriate to African driving and servicing conditions.

Importation concessions
Most mechanical and electronic parts for new-generation trucks are imported as a result of importation concessions and changes embodied in South Africa's Motor Industry Development Plan of the mid-1990s. Most new-generation trucks are made in Europe, Japan and the United States, while most of the trucks with non-electronic engines come from Asian countries like China, Korea and India.

Poorer quality
Another problem is the poorer quality diesel in southern Africa. This has a higher sulphur content and, sometimes, higher levels of contamination. Such inferior fuel may mean that the longer servicing intervals carried out overseas must be reduced must be reduced in SA from typically 100 000 km to more realistic local levels of 10 000 km to 20 000 km for hi-tech engines.

Too advanced
Experts in the field agree that the latest truck technology, mainly related to engine management and braking systems, is too advanced and expensive to maintain correctly in Third World conditions. Highly sophisticated diagnostic equipment and highly trained technicians, usually only found in franchised dealers in the main centres, are needed to detect and repair faulty electronics in the engine and braking systems.

Purchasing fewer trucks
Truck owners experiencing such problems are starting to consider purchasing fewer hi-tech trucks, despite their initially perceived maintenance advantages.
Other problems that road freight operators face include:
• The constant threat of hijacking
• Breakdowns in remote areas
• Accidents
• Deteriorating road conditions
• The high cost of vehicle replacement, maintenance and repairs
• Declining freight rates

More info
More info on this complicated subject may be obtained from the following:
• www.rra.co.za
• www.ontruck.org.ca
• www.bd.co.za
• www.nedbuzz.co.za



Talking to the "watchdog" over FS provincial finances


In order to ensure sound financial administration for the Free State Provincial Government and to combat any malpractices, the Free State Legislator has instituted a control mechanism, of which it's Committee on Public Accounts is a key element. The Chairperson of this Committee which could be labeled the “watchdog” over FS public finances is Mr. Abrie Oosthuizen, a member of the Legislator. As a matter of fact, Mr. Oosthuizen has held this position for the past 10 years - a record for any chairperson of a public accounts committee in the entire South African parliamentary system. In order to obtain more light on this critical aspect of public finance expenditure, especially as regards impact on business and business confidence in the province, the Free State Business Bulletin approached Mr. Oosthuizen with the following questions, to which he replied as indicated.

How important is it, in a nutshell, that this Committee on Public Accounts, functions soundly ?
The Public Accounts Committee is there on behalf of the tax payer to ensure that all provincial executive organs of state in the province are publicly accountable to it. All the audit reports of all departments and local authorities in the province, that is referred to the Public Accounts Committee, are dealt with in hearings open to the public and the media. In a democratic political system the auditor-general functions completely independent from the executive authority and is only subjected to the constitution and the law. In the light thereof it is then also necessary that the Committee of Public Accounts should function independently from the executive council. It is of paramount importance for the democracy, as it is expected of the representatives to account for expenditure and the handling of public funds.

What, seen on the whole, is your summarized assessment of the standard of quality of public finance in the FS Provincial Government ?
The standard of quality of public finance in the Free State Provincial Government is not as bad as the state of affairs in other provinces, but there is always room for improvement. It is of paramount importance that the quality of public financial administration is of such a high level in a country, that other regions or countries have the confidence to invest in such a province or country.
One of the most important fundamentals for the functioning of a government is money where it is generated; by whom it is spent; for what purpose and on what. Accountability and transparency following from this, are important components to ensure economic development of states and regions. If South Africa and the Free State want to compete for, and attract foreign investments and aid, which is necessary for the development of South Africa and all its provinces, we would have to make sure that our standards meet the requirements of the rest of the world, which means that we should be comparable. The Auditor-General and the Public Accounts Committee are integral parts of the process which has to ensure that there is efficient control over public funds and assets. However, the state of affairs in local government is at this stage not up to the standard that the Public Accounts Committee would like it to be.
Any improvements or adaptations you would like to see in future in the system of public finance in the Free State ?
The Public Accounts Committee would like to see all accounting officers committed to an effective, efficient and transparent system of financial administration; risk management and internal control; prevention of irregular, fruitless and wasteful expenditure and losses resulting from criminal conduct; and last but not least the safeguarding of assets of government.

Any other comments / message from your side you would deem relevant here ?
Democracy without public accountability is no democracy, and in my opinion the key word here is public. The accountability must be public. It must be transparent. We work with taxpayer's money, and the taxpayers must know how their money is spent. Is their money spent properly and are they getting value for money ?
It is not always about mistakes. There were mistakes made in the past, and there will be mistakes made in the future. There is no system in the world in which mistakes do not occur. What is important for a country and its public administration, is whether mistakes are identified, whether mistakes are recognized, and whether the necessary mechanisms are instituted to rectify mistakes and prevent them from occurring in the future. This is the primary task of the Auditor-General and the Public Accounts Committee.


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