Speeches

SPEECH BY KWAZULU-NATAL MEC FOR TRANSPORT, MR S'BU NDEBELE, DURING THE LAUNCH OF E.M.S.M.A, A JOINT INITIATIVE BETWEEN THE DEPARTMENT OF TRANSPORT AND WESBANK FIRST AUTO, 6 June 2000

Master of Ceremonies
The Managing Director of Wesbank First Auto, Mr Andy Frey
The Deputy Director-General of the KZN Department of Transport, Mr Kwazi Mbanjwa
Officials from the Department of Transport,
Members of the Media,
Ladies and gentlemen,

Ladies and Gentlemen, I feel honoured and humbled by your invitation to become part of this great milestone in the history of empowerment within the motor industry. Let me start by saying that the KwaZulu-Natal Department of Transport is committed to a service oriented, delivery driven programme of saving lives, developing people, economy and infrastructure of the Province and providing value for money. These are not just empty slogans. There are structures and programmes in place to fulfil these goals we have set for ourselves. Our new thrust for the millennium is that of empowerment.

In 1999/2000, the Provincial Motor Transport Directorate of the KwaZulu-Natal Department of Transport put finishing touches on its transformation process that effectively brought the ineffective and faulty pre-1994 provincial motor transport systems of KwaZulu and Natal into a watertight economic unit. Corruption has been rooted out of the system, and checks and balances ensure efficient and non-fraudable processes with the result that last week our Provincial Motor Transport (PMT) Directorate and other Directorates won the Premier's Good Governance Award.

As part of the department of transport's war against corruption, from this year onwards we have decided to embark upon a policy of drawing random samples of subsistence and travel claims for officials and we continue to check these against functions attended, venues and monies claimed. In 1999 we embarked on a successful court action against those companies at the forefront of corruption in this sector. We also successfully defended ourselves against claimants who undertook repair work on vehicles without the necessary authorities. In total we have saved R80 000 this way.

We are already in the process of setting up a number of pilot projects for vehicle identification technology that will ensure optimal use of our vehicle fleet. This is in keeping with national trends. The aim of these projects is to use technology, for example, in preventing vehicles filling up fuel over weekends, or if a petrol tank is not authorised via information technology. Vehicles will not be able to be started after hours without special authorisation codes that identify the driver, his or her route, and the like. However, we know from painful experience that technology can be tampered with and incriminating evidence removed. Safeguards have been put in place to ensure that this does not happen and if it does, the vehicle does not move.

Having laid the foundation a corruption free and economically viable provincial motor transport, we now turn to see how we can develop people, economy and infrastructure through the contracting of vehicle repairs and sundries. Through our Directorate of Provincial Motor Transport (PMT) we have outsourced the fleet management contract for the province's vehicles to Wesbank First Auto with the aim of developing small businesses. One of the conditions of the contract is that 80% of the repair work has to be allocated to emerging contractors. Last year, our partnership with Wesbank resulted in the development of a SMME Programme aimed at targeting emerging entrepreneurs to give them a share of government repair contracts.

The aim is to pull into the net the micro businessperson sitting at the street side repairing exhaust pipes, windscreens or undertaking welding work. Gone are the days when our entrepreneurs will be derogatively referred to as "bush mechanics". These businesses will be nurtured until they can take on engine overhauls and the like and the initiative will roll out into the entire corporate business world in South Africa. The initiative is known as EMSMA (emerging micro small medium and agents). The EMSMA classification of business enterprises comprises:

E Emerging individuals, semi-skilled, self employed, turn over up to R5 000 p.a.
M Micro-enterprises, 2 to 5 people, fixed premises turn over less than R10 000 p.a.
S Small enterprises, 5 to 10 people, 1 qualified artisan
M Medium enterprises, over 10 people, 2 artisans, liable foe VAT
A Accredited agents to the various motor manufacturers.

In terms of the contract Wesbank Auto will, together with the business community, assist emerging businesses with access to technical training, financial as well as business skills. This will be done by providing these small businesses with mentors who will be allocated to provide business support and advice. Details about the progress of these businesses, as well as the successes of the mentoring process will be forwarded by Wesbank to the Department of Transport on a quarterly basis. This will be done to ensure that we do not just give them a fish but we further teach them how to fish.

Moreover, every effort will be made to ensure sustainable development of these EMSMA's in geographical areas where the need has been identified and no compromise will be made on the standard and quality of services rendered in keeping with the Department of Transport's safety standards.

However, it is important to note that in spite of all our efforts towards ensuring value for money, we will not have succeeded without the supportive role of the media who have publicised our efforts in rooting out corruption. It is no small thing that organised business in South Africa wrote off R40 billion in losses due to fraud and shrinkage in the past year alone. This was revealed by the Durban Chamber of Commerce and Industry at a conference on Crime in the Workplace last week. Thus by publicising corruption incidents, the media warns potential culprits of the dangers of this evil practice.

In the final analysis, it is my fervent hope that Wesbank First Auto will develop small businesses to the level where they can claim confidently that they can compete with other small businesses in Japan and elsewhere. Business trends world-wide indicate a shift from big to small enterprises, which explains why economies with a bias towards smaller businesses register positive economic growth. South Africa has been able to survive the Asian economic crisis because we never put all our investment eggs into one economic basket. Small businesses can provide the most reliable and sustainable areas where social responsibility programmes can be directed. This is an investment on its own given the volatility of financial markets world-wide.

I thank you.

Issued by the office of the MEC for Transport, KwaZulu-Natal, 6 June 2000

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