Note to Editors: This is an extract of a speech delivered by CJ Steyl (MPL) in the North West Provincial Legislature today
Today, we finally get the opportunity to debate the R74.3 billion loan application by the North West Housing Corporation to the Development Bank of Southern Africa (DBSA) and what the implications of this liability will be on the provincial fiscus and service delivery in general.
This loan seeks to fund the construction of what is termed a Mega Smart City, somewhere around Lanseria, within the Madibeng Local Municipality.
But to date, neither the Housing Corporation nor the MEC of COGHSTA, Oageng Molapisi, could take this Legislature into confidence about what exactly a Smart Mega City is as per the provincial government’s definition.
According to the United Nations, a Mega City is a metropolitan area with a population that exceeds 10 million people.
A Smart City is defined as an innovative urbanised area where advanced ICT technology infrastructure is established, improving the quality of life of residents through efficient and smart e-governance and supporting sustainable economic development and growth.
Here is the problem: Madibeng’s total population is just short of 550 000 residents, and the ICT infrastructure required to qualify for a Smart City is decades behind the qualifying criteria.
Madibeng cannot even deliver clean potable water to all its residents.
The less said about the failed governance, financial mismanagement and political instability in Madibeng, the better. It is nowhere near close to being an efficient and smart government that delivers.
This North West Provincial Government wants to incur a R74.3 billion liability to fund a development that would benefit Gauteng, rather than prioritise the people of North West.
How can this provincial government ethically and morally justify a development that the North West is, quite plainly, just not ready for?
R55 billion that cannot even address all the current socio-economic needs of North West residents, as admitted by Premier Lazarus Mokgosi, Finance MEC Kenetswe Mosenogi, and every MEC that has lamented funding shortfalls on key service delivery programmes in front of every committee of the Legislature.
And as we all know, mega projects are always delayed behind schedule and incur expenditure far above budget due to poor planning, poor construction, ineffective project management, fraud, corruption and wasteful expenditure.
Just like Kusile and Medupi – liabilities that the nation will never be able to pay off – so too, as things stand, the North West Provincial Government would never be able to pay off the proposed R74.3 billion Mega City.
How will this mega project create jobs for more than one million people in North West that want a job but can’t get one?
And if we want to address the unemployment crisis in North West, which, at a 56% unemployment rate, is the highest unemployment rate in the world, would it not be better, if we are to obtain a R74.3 billion BDSA loan, to invest this money into rehabilitating North West’s existing cities and dorpies?
Because the reason North West has the highest unemployment rate in the world is that every municipality in North West is near collapse due to failed local governance and crumbling infrastructure.
If we want economic development and growth, we do not need a Mega City, we need every municipality, every city, town, dorpie and village to be effectively governed through efficient service delivery and infrastructure expansion and maintenance programmes.
If we can invest this R74.3 billion into our existing towns to fund infrastructure and service delivery, imagine the difference it would make to all North West residents throughout the province.
Maybe then Mahikeng could truly become a provincial capital city, with the infrastructure of a capital city.
Maybe when we invest in Koster, it will have a completed main road.
Maybe if we invest in Lichtenburg, a central agri-hub, more emerging farmers would be able to access markets with ease to sell fresh produce at a reduced input cost.
Maybe if we invest some of these billions in Potchefstroom, this city could become a leading international destination for technological research and development.
Maybe if we invest a few hundred million in every town, every municipality could fix the infrastructure towards obtaining green and blue drop status.
This would end the persistent water crisis and end raw sewage pollution of communities and the environment.
We can do a lot more with this R74.3 billion to improve the lives of North West residents, who all want the most basic of things.
Clean water when we open a tap.
Electricity when we switch on a light.
Safe roads to travel on.
Economic opportunity where we live.
That is it.
Not a Mega Smart City for a few. But prosperity for all.
Once this government has mastered the basics, then we can look at a Smart Mega City. And only then.
The DA will do everything to oppose any loan application for any Smart Mega City project until every city and town has been rebuilt with adequate infrastructure to support and improve service delivery.