Dear Honourable President, RE: UDM PROPOSE A WAY FORWARD FOR MARIKANA MASSACRE August 16, 2015 marks the third anniversary of the Marikana massacre. The Marikana massacre stands out as the worst case of police brutality in the post-Apartheid South Africa, where more than 30 miners were massacred by the South African Police for demanding a living wage and an improvement in their working conditions. The Nation and the families of the victims of the massacre eagerly awaited the release of the report of the Marikana Commission Inquiry, hoping against hope that it would once and for all provide answers to lingering questions about what really happened during that fateful day and who was responsible for it. Upon its release, the report fell hopelessly short of expectations. It provides no clear answers and holds no political leader accountable for the tragic incident, which leaves South Africans and the families of the victims none the wiser. In the midst of all this doom and gloom, and notwithstanding the processes that are currently underway to deal with the after effects of the Marikana massacre, there are a few additional options your Office could explore to turn the situation around, and they are: Establishment of a Committee It is our considered view that Government should initiate the establishment of a Committee compromised of all the relevant stakeholders in Marikana to discuss a possible way forward, which should include, but not limited to, compensation to the families of victims. Such a step would go a long way towards addressing the families’ bread and butter issues, as many of them struggle to make ends meet because their bread winners perished in that tragic incident. Annual Marikana Day In order to prevent such barbaric acts from happening again in future, the United Democratic Movement (UDM) proposes that August 16 be commemorated annually as the National Marikana Day. This will also serve as a reminder to both current and future generations that the price of democracy is eternal vigilance against any abuses of power whether by the state or its organs. We will also table this proposal at the first sitting of Parliament in July as a Motion Without Notice in an attempt to get the National Assembly to officially adopt it as its resolution. I Iook forward to hearing from you. Kind regards, Bantu Holomisa, MP UDM President
As the United Democratic Movement Women’s Organisation (UDEMWO), we are angered by the ignorance and inhumane treatment by the health workers at Saint Barnabas Hospital in Libode, Eastern Cape. Refusing to pay attention to a sickly person is something else but refusing to render the necessary help for a rape victim is grossly inhumane. Rape issue is a very sensitive matter and the more you do not follow all the necessary precautions is the more the crucial evidence can be missed and for a doctor to refuse to treat a victim is not acceptable at all. It takes a lot of courage for a victim to take the step of seeking assistance and to shun the victim kills the victim and this exacerbates the stigma of the gruesome act. UDEMWO is calling upon the Health MEC in the Eastern Cape to get thorough investigation into the matter and punitive measures should be put in place for those involved. Doctors or any other health workers should remember, they are at hospitals to deal and help patients and if they are unable to help community members in time of need, this means they are in a wrong field and must go elsewhere and do as they please. Statement issued by Thandi Nontenja – UDEMWO Secretary General
The United Democratic Movement Women’s Organisation (UDEMWO) is pleased with the way National Prosecuting Authority has so far handled the Christopher Panayiotou and his co-accused case of murdering the innocent Jayde Panayiotou. Panayiotou and the men accused of killing this young woman do not deserve to be back in our communities as they pose a danger not only to the community but to those close to them. They have displayed clearly that they are not human beings with their behaviour. NPA denying bail for these cruel culprits brings hope to women and children in this country. It also sends a strong message to criminals as we are not safe in our own communities because of such inhumane individuals who abuse and murder us. We are living a life of fear in the hands of those we call loved ones. As much as we appreciate this denial of bail against the men but we would like to see the hand of justice being served. As UDEMWO, we would like to see synergy amongst the government departments i.e. South African Police Service, Department of Justice and Correctional Service as these departments play an vital role and they should complement one another in making sure that the rights of women and children are protected. UDEMWO is once again calling upon the Department of Correctional Service to review the parole system as we feel that it is not applied appropriately. It favours the culprits more the victims of crime. Remember, when you violate someone’s rights you should forfeit yours. Statement issued by Thandi Nontenja: UDEMWO Secretary General
It is with great sadness that during the Youth Month in South Africa we hear of a sad event of a student that was shot and seriously injured by police. This shows that as a country, we are still far from being free. The act by the South African Police Service officials have once again taken us aback and reminded the nation of the sad times during the apartheid era when students were shot and killed for demanding their right to education. The shooting of an 18 year old student Mawande Ngoyo from Lindelani Senior Secondary School in the Eastern Cape who is in a serious condition in hospital is really saddening and is raising question of whether as South Africans are we free indeed. Everyday we hear about brutal acts of police when dealing with public protests and this is deeply worrying that live ammunition are being used. As the United Democratic Movement, we are against the vandalism of properties when members of the public are not happy with service delivery and other things but the use of live ammunition is not acceptable at all. We therefore are calling upon the Police Minister, Nathi Nhleko, to come up with ways of dispersing and dealing with large gatherings. We would also like to wish a speedy recovery to Mawande. Statement issued by UDM SECRETARY GENERAL – Mr Bongani Msomi
Honourable Speaker and members As we begin the 39 Anniversary of the Youth month, it is important that we focus on the critical challenges confronting young women. Many young women remain targets for gender based violence. The recent UN, 2010 report, on violence against women in Africa indicates that the scourge of violence against women in Africa is still largely rampant, but hidden beneath cultural practices and beliefs. Amongst other reasons accountable for this situation are recorded as: • The predominance of the system of patriarchy across the continent and our country is not immune; • Violence against women is accepted as a cultural norm in many of our communities and is often condoned by the communities; • The stigma attached to female victims has resulted in very low rates of reporting and some young women and in particular in the rural areas, do not report and or sometimes are turned away by authorities who see violence against young women as not important. All government institutions and in law enforcement agencies and our judicial system, must give priority to violence against young women. The World Health Organisation reports that the health of young women is affected by a plethora of factors, most of which revolve around lack of adequate health facilities and infrastructure. We need to give extra focus on this matter as well during this 39th anniversary of the youth months with specific focus on young women. Promoting gender equity and empowerment of young women will be of benefit to our economy and the society at large. However, we still face a stumbling block with regard to prioritising young women. The National Youth Agency must give the necessary attention on this area as it implements its programme during this month. The majority of the unemployed young people are young women. I thank you
Honourable Chairperson, Ministers and Members The United Democratic Movement supports budget vote number 33 on tourism. In this regard, we welcome the efforts and work done by the department and many other role players in ensuring that this country remains a destination of choice for many citizens of world. This is notwithstanding socio economic challenges that the country continue to be confronted which in many instances results to inhuman and barbaric acts by criminal elements within our communities. We also note with regret that more than 90 percent of tourism activities in the country are limited to the three economic centers of the country (Cape Town, Johannesburg and Durban). This means beneficiation from this industry is limited to the urban part of the country thus excluding the majority of the unemployed and poor, who are found in the extreme rural areas of our land. The further UDM notes and welcome the commitment by the department to its focus shift towards expanding the tourism scope. However, this shift must not reduce the beneficiation currently enjoyed by urban areas, instead, more investment must be towards rural areas whilst strategically empowering the urban tourism to sustain itself through proper management and diversification. The niche for rural tourism is its heritage. The department has already made a clear case for this as paradigm shift and we support that. There are many iconic attractions in our rural areas and we must take advantage of this and maximise its strategic role on tourism. Our wildlife, fascinating history, natural beauty and culture are major and primary tourist attractions and we need to grow them into global iconic places and experiences. Heritage must be at centre of rural economic development and for the realisation of this programmes, a collaborative effort between all key stakeholders like, the Department of Cooperative Governance and Traditional Affairs, the Economic Cluster and well as the Local Sphere of governance is the pre-requirement. Accordingly, the department must invest on heritage knowledge working together with other relevant stakeholders. Total implementation of the National Rural Tourism Strategy, the National Heritage and Cultural Tourism Strategy and the National Tourism Sector Strategy as policy tools that the department has in its position can no longer be postponed. Through consistent and aggressive implementation of these tools and working together with the rural citizens, will ensure that the department plays its critical role in the fight against poverty, unemployment and inequality. The department must not fail in this historic task. Thank you
Honourable Chairperson, Ministers and Members The United Democratic Movement supports this budget vote and in this regard, we would like to make the following comments. • The creation of a caring society is based on the willingness to provide the tools for achieving an inclusive society. This implies that life chances are partly detached, or de-commodified from social and economic origins and circumstances. • The core of the inclusive society is to create equal opportunities and equal access to services and infrastructure for specific groups such as unemployed and disadvantaged, disabled people, children and adolescents, older people and pensioners, ethnic communities and many others. • We need to grapple with the essential building stones for a caring society in order to achieve an inclusive society. In doing this, we must also strive to reach a stage where participation of society, in social, political and economic spheres while respecting diversity but deliberately empowering the disadvantaged and vulnerable. • We must underpin our conception of an inclusive society with education and family capital for us to sustain it. • Given the current demographics, economic and political pressure as well as financial constraints, welfare state reforms are on the political agenda everywhere in the developing world. The recent spate of missing children in particular children from poor families robes the nation of future leaders. It makes it impossible for society to invest in these poor souls for the future development of the nation. We must double the efforts in rooting out this barbaric act from our society. Both, the community and law enforcement agencies must work collectively as agents of change for the creation of a caring and inclusive society. Gender discrimination is a crucial factor in entrenching a caring and inclusive society in particular for women and girls who are vulnerable to all sorts of social and economic ills including human trafficking. A range of laws and policies and programmes have been adopted to promote gender equity. This is not only a political and constitutional priority but also a key developmental matter and central part of building a caring and inclusive society. I concede that there are, and shall always be complex and varied factors impeding realization of this noble goal, a caring and inclusive society, however, a combination of all efforts by all citizens can guarantee us a great success in this regard. Thank you
Dear Minister Patel, Minister of Economic Development RE: REQUEST FOR INTERVENTION: RENEWABLE ENERGY SECTOR CHALLENGES IN THE EASTERN CAPE The abovementioned matter has reference. Thank you for the interest you have shown on this matter. This letter highlights some of the challenges faced by renewable energy investors, whose projects are situated in former Homeland areas of the Eastern Cape. I had intended to bring some of these issues to your attention during the Economic Development Budget Vote Debate, but due to time constraints (3 minutes speaking time) I could not do so. While some of the issues here fall under the mandate of the Department of Energy and, to a less extent, the Department of Rural Development and Land Reform, I have decided to include them in an attempt to give you a comprehensive picture – and primarily because they all have a negative impact on the economic development of the aforementioned areas. Please find hereunder the details of the issues I would like to bring to your attention. 1. REIPP Procurement Programme In 2011, the Department of Energy launched the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) consisting of 5 bidding rounds taking place over a five year period. The first 4 rounds saw 79 renewable energy projects being selected amounting to R170 billions of investment by the private sector nation-wide. The Eastern Cape Province was only awarded 1 solar project and 15 wind energy projects by the Department of Energy (DOE). The total Rand value amount of this investment is approximately R26 billion. However, regrettably none of these projects is located in former Homelands, despite these areas representing 40 per cent of the Province’s land mass and 60 per cent of its population. I therefore appeal to you Mr Minister to influence the DOE to spread the benefit of these projects as wide as possible. 2. Socio-Economic Impact of the REIPP Procurement Programme Apart from its primary objective of procuring energy, the DOE has commendably designed the REIPP Procurement Programme as a tool to foster long term rural development within a 50km radius of each project location. The social benefits of this are massive. Each successful renewable energy project is compelled and has to commit to spend between 1 to 2.1 per cent of its turnover on Socio-Economic Development (SED) contributions and Enterprise Development (ED) contributions over the 20 year life cycle of its project. In addition to the job opportunities created during the construction and operation phase, each renewable energy project has to set up a community trust that owns between 5 and 40 per cent of the project’s equity shares and the dividends should be spent on community upliftment projects. The long term benefits are substantial, and will definitely change the face of rural South Africa in the medium to long term. 2.1 Over-concentration of Projects While these policies have massive socio-economic benefits, several challenges about the overconcentration of projects in certain areas of the Province remain. For instance, the majority of Wind Farms in the Eastern Cape are situated in two areas, Jeffrey’s Bay and Cookhouse, and together they have a combined investment value of R26 billion. In other words, the entire R26 billion that has been invested on renewable energy in the Eastern Cape thus far has gone to the two “previously advantaged” areas. Needless to say, this creates a long term imbalance with regard to development in the Province. It is often argued that the Northern Cape also suffers from the same over-concentration of projects in some areas. This over-concentration results in a situation, where a few communities that happen to fall the same within the 50km radius experience massive development, while leaving those who fall outside largely depending on the limited resources of the municipality for development. If left unchanged, this will become a major source of future intra-community inequality, which would lead to major community tensions and instability in future. To balance development in the Eastern Cape and other Provinces, I would like to propose that 30 per cent of the 1 and 2.1 per cent of the turnover companies have to spend on socio-economic development and enterprise development over the 20 year life cycle of the project be channelled to municipal coffers for service delivery across the municipality. Government should also take active steps to address the over-concentration of projects in a few areas. In particular, there should be deliberate focus on projects that are situated in previously disadvantaged communities. 3. Complex Land Tenure Systems: Former Homelands at a Competitive Disadvantage A private investor has to secure land rights before participating in the REIPP Procurement Programme. To acquire such rights on communal land, an investor must follow a lengthy and complicated administrative procedure with the Department of Rural Development and Land Reform, which takes anything between 3 to 4 years to complete. In contrast it takes a couple of months to achieve the same result when land is acquired from a private landowner. Government has to streamline this process if it has to level the playing field. 4. High Community Ownership and the Role of Development Finance Institutions (IDC) In former Homelands, communities are the landowners, meaning that in rural areas instead of dealing with a few farmers as landlords; a developer has to negotiate with several communities and therefore has to ensure that the project will meaningfully benefit tens of thousands of people, who live on the land earmarked for development. However, when the community is the landlord, most developers will back-end the payment of dividends from the community trust as a way to increase the competitiveness of the project. In other words, developers delay the payment of dividends to the surrounding communities by 10 years. This enables a developer to secure much more favourable financing terms for the community trust, which has a direct impact on the improvement of the project’s finances. But the downside of it is that communities have to wait for ten years to get dividends. Again the playing field is not level, as high community ownership stakes and favourable financing terms are required for projects that have thousands of community members as landlords, but there are currently no incentive schemes or reward mechanisms built into the DOE’s selection criteria to reflect the positive long term socio-economic impacts of rural projects. Moreover, development finance institutions do not provide projects located on communal land in Former Homelands any preferential financing terms for community stakes. For instance, the Industrial Development Corporation (IDC) has been very active in financing community stakes for projects located on privately owned land in the renewable energy hotspots with 50km radius overlap between projects. The terms offered by the IDC to project’s located in former Homelands are less competitive than commercial banks. For instance, one of the Wind Farms in Motherwell had to acquire finance from commercial banks in order to finance the community stake due to the IDC’s unfavourable loan conditions. Clearly, IDC failed to play its developmental role of bridging the inequality gap in our economy in this example. It is estimated that in order to finance a 30 per cent community ownership stake for the 400MW of renewable energy projects that are currently being developed in Former Homelands, about R600 million would be required at competitive rates. The amount of R600 million might seem like a lot of money. But it is not out of reach when one considers that the Department of Economic Development has set aside R23 billion to assist black industrialists out a R100 billion rand package earmarked for industrial development. Currently, lack of funding and other challenges force developers, who are located in former Homelands, to reduce community stakes, back-end the distribution of dividends and reduce the percentage of ED and SED contributions in order to stand a slim chance of winning in the REIPP Procurement Programme. In summary, to level the playing field, I propose that two actions be taken by Government: • The DOE gives more credit in its score card to projects located on communal land in the former Homelands. • Development Finance Institutions provide very competitive financial terms for community stakes in order to beat commercial banks and allow projects to be more competitive. 5. Underutilisation of Electricity Infrastructure. Since 1994, the ANC government has successfully built brand new electricity substations in former Homelands in order to give access to electricity rural communities. This new infrastructure represents cheap and rapid means of connecting renewable energy projects to the grid, while placing no additional financial burden on Eskom. However, the large majority of projects selected to date by the DOE require substantial network investment with the associated timing implications, while the country is in the middle of an energy crisis. The DOE has not taken into account the advantages former Homelands offer in terms of rapid, cheap and decentralized energy generation capacity they bring to the Eskom grid. In other words, it is easier to connect the small wind farm projects to the substations that are in rural areas than it is to connect big renewable farms to the same substations for reasons mentioned above. Again, the playing field is not level, as these advantages which have a financial implication for the country are not taken into account. I look forward to hearing from you. Mr Nqabayomzi Kwankwa, MP Copied to: Honourable Elsie Mmathulare Coleman, Chair PC on Economic Development