MEC M Qwase to launch e-mails and digital magic pen solution

27 Sep 2010

A pilot project by Vodacom South Africa aimed at ensuring that the Eastern Cape department curbs travelling costs and time of Education Development Officers (EDO)in getting information the fastest way from schools using a 'Magic Pen' is gaining momentum as every provincial district is now trained to use this facility.

Tomorrow, the 28th of September 2010 the Eastern Cape MEC, the honourable Mahlubandile Qwase will officially launch the implementation phase of this pilot project at the Mbizana district at 12h30. Although to date almost all the districts have received the training which will ensure that less paperwork is used and no information is misplaced. Primarily, the pen will also assist in reducing human error in data capturing as it will focus on two aspects for now and those being the educator attendance and weekly leave forms.

Amongst the advantages of using this pen is that it will ensure that the required information reach the right hands at the required times and that any statistical information will be gathered easily.

The training that the provincial district officers have received will in identifying problematic earlier and quicker, while it will also improve on turn-around times in submitting information.

Vodacom has identified the Eastern Cape Province as the place to pilot this project with an aim of rolling it over nationally based on its success. This project is the first of its kind to be used in the education sector and apart from the fact that Vodacom is the sole investor and the department is not billed.

The first batch of 40 pens with their gadgets will be distributed and utilised for the first time to collect and transfer information that would be used by the provincial office. Each of the 40 magic pens cost R4 000 but will be given to the departmental officials for free. The programme of the event is as follows:

Venue: Mbizana district office
Time: 12h30
Date: 28 September 2010

The first of the three phases will serve as proof of the device's functionality and to determine if it is working according to design specifications. This phase is being piloted in the lowest performing districts which are Qumbu, Cofimvaba, Butterworth, Mbizana and Fort Beaufort.

If success is achieved in phase one, further phases can be rolled out to other education districts and can include monitoring of learners as well.

Features of the pen are as follows:

• It is a pen-like digital device with a cap
• It has a battery
• It has four coloured lights on it
• Red: Battery very low
• Yellow: charged less than 50%
• Green: fully charged
• Blue: connected to bluetooth

The pen cap

• When on, it is deactivated
• When off, it is activated
• It has an infrared camera
• It has a charger 
• It has a memory of 40 A4 pages
• It has ink refills
• It has bluetooth
• The pen vibrates when activated

NB: Members of the media are especially urged to join us for this important and timely event.

For any queries please contact:
Mtima Malibongwe
Cell: 082 088 4599 or 084 842 7872

Source: Department of Education, Eastern Cape Provincial Government

Issued by: Eastern Cape Education
27 Sep 2010

Remarks at the release of the 2010 annual economic report and September 2010

Remarks at the release of the 2010 annual economic report and September 2010 quarterly bulletin of the South African Reserve Bank by Dr Monde Mnyande, Advisor to the Governor and Chief Economist, Pretoria

22 Sep 2010

Chairperson and Governor, Ms Marcus
Board of Directors of the South African Reserve Bank, members of the Press and colleagues

1. My task is to introduce the 2010 annual economic report and the September 2010 quarterly bulletin. Given time constraints, the intention is not to give a comprehensive presentation covering all aspects contained in these publications. Instead, only a few key points and themes will be touched upon, so as to whet your appetite for further reading.

2. The annual economic report presents the broader economic context within which the South African Reserve Bank (SARB) has had to operate and formulate monetary policy during the past year. My remarks today will mainly relate to this publication, with its focus more on medium to longer term trends.

3. As far as the global picture is concerned, the past year has been a period of recovery, fragile and uneven recovery across our major trading partners, in economic and or trade activity. The volume of global trade is currently back to its early 2008 pre-crisis peak level. However, led by countries such as China and India; the emerging market economies as a group, have managed to raise exports more vigorously than the developed economies. The developed economies' exports have not quite recovered to earlier peak levels.

4. To support the fragile recovery, monetary policy in the major developed economies has been expansionary. Interest rates have been very low, while quantitative easing resulted in strong expansion of central bank balance sheets. The abundance of central bank liquidity, however, did not result in much expansion of the private banking sector's credit extension, as lenders and borrowers alike remained very cautious.

5. Strong fiscal policy stimulus was also maintained. However, along with structural economic weaknesses, the rapid escalation of government debt (and in the case of Greece the discovery of a weaker fiscal position than previously presented or known) resulted in serious sovereign debt concerns. This was reflected in rising yields on bonds issued by the governments of Greece and a number of other European countries, which only receded once a large support package was announced in May this year by the European authorities and the International Monetary Fund (IMF). Fiscal stimulation was reduced and austerity measures introduced in a number of countries. However, it was clear from the renewed increases in yields on such bonds in the third quarter of this year that deep-seated concerns remained.

6. The improvement in global economic activity and in international commodity prices along with domestic monetary and fiscal stimulus resulted in a cyclical improvement in the South African economy.

7. Whereas the South African economy contracted for three consecutive quarters, from the final quarter of 2008 to the second quarter of 2009, positive growth was restored from the third quarter of 2009, accelerating to 4,6 percent in the first quarter of this year before moderating to 3,2 percent in the second quarter. Manufacturing production recorded brisk increases in both the first and second quarters of 2010. Output in the services sector was supported by expenditure related to the 2010 FIFA World Cup tournament.

8. Among the expenditure components, real final consumption expenditure by the household sector contracted for five successive quarters before resuming an upward trend from the final quarter of 2009. Expenditure on durable and semi-durable goods in particular, registered brisk increases, albeit from a low base.

9. One of the reasons for the recovery in household consumption expenditure is the rising net wealth of the household sector, brought about by an improvement in the prices of houses and shares. A note in this quarterly bulletin provides further information on developments in household wealth, and the ratio of household net wealth to disposable income will henceforth be published in the Quarterly Bulletin, in addition to the ratio of household debt to disposable income which has already been published for many years.

10. The level of real fixed capital formation declined somewhat over the past year, with increases in capital expenditure by the public corporations which were more than offset by lower capital outlays by the private and government sector. A marginal increase in overall real fixed capital expenditure was registered in the second quarter of 2010. Real consumption expenditure by government continued to rise firmly, reflecting improved service delivery and the acquisition of military equipment.

11. Not unexpectedly and as determined by tardy recovery in demand, private sector employment contracted significantly in 2009 and continued to do so in the first quarter of 2010 but at a slower pace than before. While the private sector continued to shed jobs, employment numbers in the public sector increased somewhat.

12. Wage settlements continued to moderate in the first half of 2010 though they remain above the upper limit of the inflation target range. Unit labour cost is also expected to fall in the third quarter. In the third quarter a salary dispute in the public service resulted in strike action.

13. The targeted consumer price measure of inflation decelerated to below the six percent mark from February and remained within the inflation target band in the six months to July 2010. By July, inflation had receded to below the midpoint of the target range, notwithstanding high administered price inflation.

14. The appreciation of the exchange value of the rand and low food price inflation managed to offset high administered price inflation. In recent months the real effective exchange rate approached levels previously observed in the early part of 2006.

15. On the external front, it is also worth noting that in the past year China has risen to the number one position as destination for South African exports, a position that was previously a preserve of the United States.

16. Overall export volumes remained lusterless in the second quarter of 2010 partly due to temporary setbacks to mining output. During the past year the favourable prices of South African export commodities nevertheless helped to contain the deficit on the current account of the balance of payments. It fluctuated higher from around three percent of gross domestic product in the second half of 2009 to 4,6 percent in the first quarter of 2010 as domestic demand picked up. However, it then narrowed to 2,5 percent in the second quarter of 2010 as expenditure by visiting football supporters soared during the 2010 FIFA World Cup tournament, and inflows of capital continued to assure the financing of the deficit.

17. The repurchase rate has been reduced from 12 percent to six percent since December 2008, initially quite rapidly but at a slower rate since late 2009. The rate was reduced by 50 basis points on each occasion in March and in September 2010, reflecting a more favourable likely future trajectory for inflation foreseen by the Monetary Policy Committee (MPC). With the repurchase rate at six percent from 10 September 2010, the banks' prime overdraft rate came to 9,5 percent, the lowest in three decades.

18. Despite the substantial reduction in interest rates over the past 21 months, credit growth remained weak during this period. Although banks' credit extension returned to positive growth in 2010, rates of increase remained moderate as lenders and borrowers remained cautious, affected by high debt levels, elevated impaired advances, weak employment prospects and uncertainty caused by the fragile global economic recovery.

19. During the past year the Reserve Bank continued to accumulate foreign currency. The money market effects of this action had to be offset by liquidity draining mechanisms in order to maintain orderly liquidity conditions in the money market. Over the past year, raising the level of government deposits with the Bank was an important avenue towards such sterilisation. Apart from the instruments routinely used so far, the Reserve Bank to this end also started using longer-term foreign currency swaps from August 2010. The spread of the Reserve Bank's standing facility rates above and below the repurchase rate was increased from 50 to 100 basis points with effect from the end of August.

20. After a notable recovery from March 2009 to April 2010, share prices receded somewhat and subsequently fluctuated broadly sideways.

21. House price inflation gained some momentum in the first half of 2010, but subsequently started to decelerate.

22. Fiscal policy remained expansionary during the past year, continuing to play a strongly counter cyclical role. Government expenditure levels remained high while tax receipts were subdued on account of the wide output gap. In recent months the economic recovery has had a favourable impact on government revenue, with the result that tax collections have moderately exceeded earlier projections and the deficit, while large, has started to narrow. This is consistent with government's aim to gradually reduce the deficit, broaden the tax base and improve tax compliance.

23. Finally, let me highlight further observations regarding the football tournament, as contained in a box and a note in the quarterly bulletin. In the second quarter of 2010, travel receipts from non-residents associated with the sport event amounted to roughly R3,5 billion (almost R15 billion when annualised). This raised travel receipts by almost 26 percent from the first to the second quarter of the year. It may also be pointed out that the tournament had a quite limited impact on the demand for notes and coin, an experience shared with other countries hosting major sport events in recent years. However, card transactions by non-residents did rise significantly on account of the football tournament.

24. In summary, the past year has brought some recovery in activity, although not in the country's key critical factor, i.e. employment, as well as lower inflation and improved inflation prospects, which have made it possible for the Bank to further reduce policy interest rates. Fiscal policy has remained expansionary. The past year has also been characterised by appreciation of the external value of the rand.

Questions are welcome.

Source: South African Reserve Bank

Issued by: South African Reserve Bank
22 Sep 2010

Department tightens financial controls

22 Sep 2010

In an effort to strengthen financial controls, the Gauteng Department of Health and Social Development supported by the national Department of Health (NDOH) have put in place interventions to ensure that it achieves clean audit.

The department is currently in the process of implementing short-term interventions that includes among others, asset management, supply chain management, payroll management, budget planning and expenditure monitoring.

With regards to procurement and contract management, the department will maintain, update and review a register of financial interests so as to safeguard the conduct of officials of the department against the interest of the department. All officials will also be requested to annually declare their interest in order to improve controls over possible conflict of interest.

In addition, the department will improve monitoring of compliance with procurement policies and procedures and also perform a risk assessment on procurement.

The department will embark on the physical verification of employees with a view to validate the number of employees in the organisation. Continuous collection and updating of personnel information for validation processes will also be undertaken. As part of reducing expenditure limitation of overtime and recruitment of competent and skilled financial managers and training of existing ones as well as clinicians will also be implemented.

Currently, physical verification of all assets is in process to ensure that all assets are accounted for.

The department will in conjunction with Treasury manage its cash flow to address accruals as well as current supplier payments.

All managers will be encouraged to attend change management course and enforce strict financial controls in their units.

In response to the financial challenges, the NDOH signed a Memorandum of Understanding with National Treasury and the Treasury's technical support group to help strengthen public financial management. In addition, the NDOH has established a provincial support unit to oversee this work.

Enquiries:
Mandla Sidu
Cell: 082 773 9013

Issued by: Gauteng Health and Social Development 
22 Sep 2010

Refurbishing of Premier's official residence

22 Sep 2010

In the Gauteng Provincial Legislature this week, MEC for Infrastructure Development Faith Mazibuko revealed that the province has spent about R2-million refurbishing Gauteng Premier Nomvula Mokonyane's official residence. The refurbishment was necessary as the last person who occupied the residence resigned in September 2008 and the house was left vacant. Before Premier Nomvula Mokonyane could move in, standard procedures had to be followed where the Department of Infrastructure Development had to conduct an assessment of the residence, which deemed it necessary for the department to refurbish the house. Normal procedures were followed in this regard and the money spent is justifiable.

In terms of the Ministerial Handbook, Chapter 4, Section 3.8.1a. (i-iv) the Department of Public Works (which in Gauteng is the Department of Infrastructure Development) is responsible for general maintenance and renovation of the State Owned residences of which the Premier's official residence forms part of. Section 3.8.1.c (i-viii) stipulates that the department is also responsible for the provision and maintenance of furniture and accessories.

As the Department of Infrastructure Development it is our responsibility to ensure that the Premier focuses on governing the province and bettering the lives of the people of Gauteng through service delivery in line with the seven priorities of the province and she is thus not responsible for the renovation of any government property.

For any enquiries please contact:
Kabelo Thabethe 
Cell: 083 703 0529
E-mail: kabelo.thabethe@gauteng.gov.za

Source: SAPA

Issued by: Gauteng Infrastructure Development
22 Sep 2010