Minister of Finance
PO Box 29
THE LACK OF INFRASTRUCTURE AND SERVICE DELIVERY IN TRANSKEI
recently toured the Transkei region of the Eastern Cape, and was
again struck by the severe lack of infrastructure and service
delivery in that area. Many people have approached me about this
matter, and therefore I herewith request that you institute an
investigation on public spending in the Transkei. I am of
the opinion that mechanisms must be developed to scrutinise and
monitor the spending of all funds allocated to the Transkei,
since it is by all indications the poorest region in the
People are beginning to question the figures that are announced
in the Budget every year, since they do not experience an
improvement in infrastructure and service delivery.
The 1993/94 Budget allocation of the then Transkei government
was approximately R6 billion. There is also a growing feeling
that funds allocated and spent since 1994/95 to date does not
even approach the R6 billion allocated eight years ago.
Due to the fact that funds allocated to RDP not realising in
tangible development on the ground, people are flocking to the
cities to swell the informal settlements and slums.
Attached is a letter
I recently wrote to the Eastern Cape Premier, Mr Stofile,
regarding these matters. Allow me to site, aside from those is
that letter, one example of the degradation in Transkei. Umtata
General Hospital, the biggest in the region, has no medicine.
This is a scandal.
The people of the Eastern Cape have won numerous court battles
against government, such as the Tracor employees, soldiers,
teachers, nurses etc. who had their monies withheld by the
government regarding outstanding payment due to them after they
took packages. Those payments have still not been made.
Contractors and other professionals like the architects,
quantity surveyors etc. are also experiencing the same
frustrating situation of not receiving compensation for services
delivered to the state.
President Mbeki's central theme of the State of the Nation
address was " the rolling back of the frontiers of
poverty" and "the creation of a better life for
all". We cannot hope to achieve this noble objective while
we discriminate in the allocation of financial resources in this
country. Our country is characterised by the existence side by
side of extremely rich and extremely poor provinces. Budgets
which had been approved, on the basis of accepted business plans
for the King Sabata Dalindyebo municipality in the Eastern Cape
for roads and water-sewerage reticulation have been frozen in
Bisho and will now be returned to treasury. Reason? A UDM run
municipality must not be seen to deliver to the voters. Where
projects have taken off in the Transkei they are to be found in
the hometown of the Minister of Public Works, this is all
reminiscent of the dark ages of our blighted history. I invite
you and your officials to tour the Transkei and see for
yourselves the appalling state of the roads, schools, government
buildings and health services in this area of the Eastern Cape.
Delivery takes place at the second and third tier levels of
government. It is mandatory on central government, and your
office in particular, to closely monitor the provinces and stop
the rolling over of budgets in the provinces when there are so
many backlogs in the delivery of essential services.
The people of Transkei feel that they made a considerable
contribution to the struggle of this country. The figures that
are stated in previous budgets do not tally with the reality on
For the above reasons it is urgently required that it be
determined whether under-spending and under-development is as a
result of national or provincial government's failures. Given
the levels of poverty and unemployment in the region, and the
large amount of people affected, immediate intervention is a
Good luck for tomorrow's budget speech, unfortunately I will not
be in the House due to prior engagements. However, Dr Gerhard
Koornhof, UDM Deputy President, will comment on your speech.
Mr HB Holomisa, MP
President - United Democratic Movement