Outcomes of Western Cape Government Cabinet meeting

On Wednesday, 21 August 2024, Premier Alan Winde chaired a meeting of the Western Cape Government (WCG) Cabinet. The meeting was held at the Provincial Traffic Centre in Beaufort West following a Cabinet Outreach, which allowed him and Cabinet colleagues to engage in person with residents.

A Cabinet Outreach provides an opportunity for members of the Cabinet, and officials from the relevant district municipality to meet one-on-one with residents and hear about their challenges, concerns and ideas for building a better Western Cape. Unlike expensive public meetings where only those who take to the stage are heard, residents have an opportunity for a face-to-face conversation with a provincial minister, officials and local leadership. This Cabinet Outreach was held at the Thusong Centre in Rustdene, Beaufort West, and residents from across the area came to talk to government representatives.

Reflecting on his time in Beaufort West to members of his Cabinet Premier Winde said, “It has been so good to be here in the Central Karoo. But you can feel the impact of economic hardship on communities and their heartfelt desire to find a job. But I have also been encouraged by their willingness to work with us to find solutions. We must work with them to make sure we help them grow their economy and provide the necessary social services.”

Premier Winde cemented his government’s commitment to taking the issues raised, working with other spheres of government and organisations and coming back to the Central Karoo again to report back and make progress on the most important needs of residents.

Intergovernmental Dispute

Given the increasing tightening of the fiscal envelope, Cabinet resolved that the Premier and Western Cape Minister of Finance Deidré Baartman, will again write to President Ramaphosa and national Minister of Finance Enoch Godongwana, on the serious concerns the WCG has repeatedly raised in correspondence to the Presidency over the WCG’s concerns about its fiscal sustainability.

Should the WCG not receive a satisfactory response, it will have little choice but to consider its options, which include further escalating the matter.

“How are we to build more hospitals, schools, and roads, employ more teachers and social workers if our province does not get its fair share of the national budget and is forced to cut budgets on critical services and staff posts?” asked Premier Winde, “We must take further steps to make national government realise just how serious this matter is. We are committed to resolving this matter amicably, but we cannot stand back and allow critical services for our residents to be cut.”

The provincial government declared an intergovernmental dispute (IGD) with national government late last year over this issue, which has severely affected frontline services, especially in healthcare and education.

Premier Winde said, “National government needs to make tough choices and the right choices to prioritise services not bailouts. We will continue to push it to resolve this matter. We must hold national government accountable. Currently we are anticipating a hefty R7 billion cut in budgets over the next three years, which will hit services like health and education incredibly hard; and we are sitting with a R6 billion shortfall due to national government not refunding us for our disasters of 2023 and 2024.”

Cabinet noted that the WCG has always acted in the interests of the residents in this IGD and remains committed to finding a long-term solution with national government.

Financial sustainability of Western Cape municipalities

Cabinet noted the latest Municipal Performance Monitoring report, which is a critical part of the WCG’s oversight functions of local government to ensure good governance.

Provincial Treasury has identified eight municipalities that are facing significant financial risks:

• Matzikama;
• Cederberg;
• Theewaterskloof;
• Kannaland;
• Bitou;
• Knysna;
• Laingsburg; and
• Beaufort West

“The provincial government is assisting these municipalities wherever it can but the onus is also on them to take the required steps to stabilise their finances and restore service delivery for our residents. We have seen the consequences of poor management at local government level in Knysna. This cannot be allowed to be replicated elsewhere. I urge all municipalities to work with us towards financial sustainability, in the interests of our residents” said Premier Winde. Provincial Treasury is closely monitoring municipal performance including municipalities in financial distress and vulnerable municipalities.

Paris Olympics 2024

Cabinet congratulated all of South Africa’s athletes who participated in the Paris Olympics.

Team South Africa won 6 medals. Premier Winde said, “Team South Africa made us all very proud. Well done to those who competed, especially the fine athletes from our province. Sport plays such a powerful role in building our nation, creating opportunities and helping our residents develop confidence in themselves. While we are so proud of our Olympic athletes, every day South Africans excel whether it is in competition or in nurturing their health and wellbeing – well done to all of our athletes!”