Briefing to the Portfolio Committee on Expanded Public Works Programme Sept 2012

Presentation Outline Introduction Incentive grant allocation and eligible municipalities The new incentive model and its advantages Report on municipal officials trained by EPWP in conjunction with LGSETA Outcome of workshops held with eligible municipalities and provincial Treasuries Participation of people with disabilities on EPWP Report on Vuk’uphile 2 learnership programme Outcome of the discussion with the Department of Labour on Food for Waste Programme Conclusion

Introduction The Department of Public Work presented the revised incentive model to The Portfolio Committee on Public Works on 29 May 2012. The purpose of this report is to provide some responses to the issues raised on the model during the meeting Inform The Portfolio Committee on the outcome of the meeting with the Department of Labour on Food for Waste Programme

Municipal Incentive Grant allocations for 2012/13 financial year From the total of 278 municipalities, 246 met the eligibility criteria set for the grant. KZN has 36 eligible municipalities out of 61 municipalities in the province. This was due to the none participation of Municipalities in the EPWP. For the list of eligible Municipalities per Province and allocations, see Annexure A

Municipal Incentive Grant allocations for 2012/13 financial year Province No of Municipalities No of eligible Municipalities Incentive Grant allocation (R'000) FTE's to be created in 2012/13 financial year WO to be created in 2012/13 financial year EC 45 98 626 14 070 54 452 FS 24 23 37 135 5 285 22 234 GP 12 175 837 15 791 61 402 KZN 61 36 84 987 15 133 72 836 LP 30 48 082 8 401 44 801 MP 21 29 795 4 911 23 285 NC 32 26 32 659 2 226 7 012 NW 38 167 5 131 29 177 WC 53 952 5 401 21 971 TOTAL 278 246 599 240 76 349 337 170

Advantages of the new Incentive Grant Incentive Allocation is regarded as certain Will ensure allocation to small and poor municipalities The first tranche of payment is made at the beginning of the year after the approval of business plan. The subsequent payments will depend on the progress made on the implementation of the business plan. DPW will provide focused support to public bodies to mainstream job creation and EPWP principles. DPW will also actively support planning and simplify the planning requirement of a normal schedule 5/6 grant. As part of the conditions of the Grant, Municipalities will provide project lists to see what projects will be implemented using the Grant. Performance against the grant target will be assessed to inform further disbursements to ensure the public body is implementing its project list or business plan Makes appropriation simpler for treasuries Funds are allocated and received consistently during the year 6

EPWP and LGSETA Labour Intensive Training 193 Municipalities participated in the Labour Intensive training on NQF 5. 233 Municipalities participated in Labour Intensive training on NQF 7. The breakdown of the training per provinces is provided below and the list of officials trained is attached as Annexure B.

Labour Intensive Training on NQF 5 Province No of Municipalities No of participating Municipalities No of non-participating Municipalities No of Trained Municipal officials Eastern Cape 45 31 14 171 Gauteng 12 11 1 158 KwaZulu Natal 61 44 17 237 Western Cape 30 13 109 Free State 24 6 60 Limpopo 25 5 81 Northern Cape 32 19 40 North West 23 16 7 36 Mpumalanga 21 4 88 GRAND TOTAL Level 5 278 193 84 980

Labour Intensive Training on NQF 7 Province No of Municipalities No of participating Municipalities No of non-participating Municipalities No of Trained Municipal officials Eastern Cape 45 24 21 60 Free State 23 14 9 18 Gauteng 12 6 42 KwaZulu Natal 61 10 51 Mpumalanga Limpopo 30 50 Northern Cape 32 2 North West Western Cape GRAND TOTAL Level 7 233 77 156 214

Feedback from NW and MP workshops The purpose of the municipal workshops held on the 6th & 7th June 2012 was to brief municipalities on: New EPWP Incentive Grant Model Importance of developing and endorsing EPWP Policy Establishment of District Forums the Ministerial Determination and Code of Good Practice In NW, 15 out of 23 municipalities attended the workshop viz: Madibeng, Moretele, Rustenburg, Ngaka Modiri Molema, Mafikeng, Ratlou, Tswaing, Dr RS Mompati, Naledi, Greater Taung, Tlokwe, City of Matlosana, Maquassi Hills, Ventersdorp, Dr K Kaunda. All 23 municipalities have signed the incentive agreements and business plans/project lists. Mamusa had submitted the project list on a wrong template. 10 municipalities have developed their draft EPWP policies, of which five have been sent back to the municipalities for endorsement after being reviewed by EPWP regional team. Mafikeng LM policy has been endorsed. In MP, all 21 Municipalities were represented in the workshop and 7 provincial departments attended. Incentive Agreements have been signed by all 21 Municipalities and they have submitted the project lists Currently, two policies have been endorsed by the council and 10 are still at a draft stage. We are the process of engaging the remaining municipalities in terms of policy development.

EPWP Vuk’Uphile Learnerships in terms of NSF Provinces Municipality/Entities No of learnership Progress to-date FS Mangaung Metropolitan 20 Tenders closed. Shortlisting and due diligence reports conducted. Procurement to finalise approval. GP City of Tshwane 40 EC Amathole DM At first stage of procurement. Bid specification and Evaluation Committees approved. Alfred Nzo DM Buffalo City Metro IDT KZN Ethekwini Metro 50

Participation of People with Disabilities in EPWP … 1 The EPWP work opportunity targets are disaggregated into youth, women and disabled people. The participation of people with disability on EPWP is poor. NEDLAC Community Constituency sits on the Non-State Sector (NSS) Program Management Team (PMT) structure and during the summit committed to assist the programme to engage with People with Disabilities forums to create awareness on the NSS programme by the end 2012/13 financial year. At the provincial level the Provincial PMT structures include coordinating sector departments and Department of Social Development which has an oversight on ensuring participation of People with Disabilities in the programme. Through NSS awareness workshops held in municipalities people with disabilities were also engaged to understand the application criteria for the EPWP:NSS. The NSS Summit action plan was developed from which a stakeholder plan to engage people with disabilities was developed.

Participation of People with Disabilities in EPWP … 2 The EPWP: NSS will engage national forums of People with Disabilities to lobby participation of their NPOs in the programme. The EPWP: NSS will ensure mainstreaming awareness of the NSS programme at provincial and district Disability forums and structures. The programme will involve municipalities and tribal authorities in identifying NPOs of people with disabilities in the communities that can send proposals for the 2013/14 financial year uptake. Emanating from summit report the request for proposal could be seen as not accessible to previously marginalized groups. The summit resolutions noted that a stakeholder strategy will be developed in 2012/13 financial year to give direction on how to engage women, youth and people with disability groups.

Outcome of the discussion with the Department of Labour on Food for Waste Programme The Department of Public Works engaged the Department of Labour (DoL) to seek approval to implement the Food for Waste Programme by compensating beneficiaries with food parcels. Currently 26 municipalities participate in the programme and it has created 2600 work opportunities. Compensation is at R63.18 per person day worked. A legal opinion was received from the Principal Legal Officer from DoL indicating that it was permissible to compensate with food parcels. Attached find the legal opinion. The Department of Public Works made a presentation to the Employment Conditions Commission (ECC) to seek amendment to the EPWP Ministerial Determination to pay in kind (food parcels) as this programmes addresses food security. DPW made a presentation to ECC on the 15th August 2012 , and a response is awaited from ECC.

Conclusion EPWP will continue to engage stakeholders on compliance issues and developing the strategy to increase participation by people with disabilities. The new model has been implemented and the first tranche has been paid to eligible Municipalities. The second tranche is scheduled to be paid on the 15 November 2012.

Thank You!!!