Khalid Sayed: Western Cape Premier's budget doesn't put residents first

The following is a speech by the leader of the opposition, honourable Khalid Sayed MPL, at the Debate on the Department of the Premier's Adjustment Budget, in the Western Cape Provincial Legislature on Thursday, December 5, 2024. 

Honourable Speaker,

Honourable Premier,

Honourable Leader of Government Business,

Honourable Leaders of Opposition Parties,

Honourable Members of the House,

I would like to begin by thanking Premier (Alan) Winde, his Department, and Provincial Treasury for their efforts in preparing the Adjusted Estimates of the Provincial Revenue and Expenditure. This year’s adjustments were not just about balancing the books; they had to lay the groundwork for 2025 and reflect the priorities of the 7th administration, including our Government of National Unity’s Statement of Intent and the commitments made in the Premier’s Opening Address on 31 July 2024.

As the official opposition, the ANC expected this adjustment budget to reflect these priorities, especially in the Department of the Premier. Unfortunately, we see significant gaps in leadership, alignment, and the allocation of resources—gaps that hinder the Department’s ability to fulfil its core mandate of strategic leadership, policy coordination, oversight, and public engagement.

Instead of focusing on these priorities, over R1.4 billion has been directed to the Centre for e-Innovation or CEI. While CEI is supposed to drive innovation, it primarily operates as an Information Technology (IT) service provider, managing tasks like Microsoft licensing and connectivity—functions that individual departments could handle themselves.

Why does CEI, for example, dictate the specifications for the Western Cape Education Department’s (WCED) school computer labs, bypassing the WCED’s own needs? This kind of centralization creates unnecessary red tape, delays service delivery, and raises a critical question: does the Premier not trust his own MECs to manage these responsibilities? Is this a legacy of former Premier Helen Zille as we anticipate a cabinet reshuffle early next year?

The CEI employs over 300 staff, but their expertise is IT—not the needs of individual departments. This disconnect can lead to inefficiencies and misaligned priorities. Moreover, the CEI’s procurement processes and activities are concerning.

The Cliff Dekker and Hofmeyer Forensic Report uncovered alleged corruption, collusion, and maladministration in a R1.2 billion IT tender awarded to Blue Network Consortium. Shockingly, at least five officials implicated in this report are still working in CEI, with two holding managerial positions. Why were these individuals involved in procurement processes? And why is CEI even involved in services like computer connectivity for the WCED?

We fear this may not be an isolated case. Could other forensic investigations into the Department of the Premier reveal similar patterns of complicity and malpractice?

We also need clarity about who benefits from CEI’s procurement. Are small and Black-owned businesses being included in these contracts, or do the same dominant players—like Mustek and Pinnacle—continue to monopolise the space? Furthermore, which of Microsoft’s eight models for government entities has this province chosen, and were departments consulted on what best suits their needs?

While the fixed subscription model offers cost stability, the Department blames the rand/dollar exchange rate for budget shifts. This excuse raises doubts about whether the true cost of these contracts was ever fully understood.

Honourable Speaker, the CEI’s stated goal is to enhance service delivery through real-time data. But where are the results? Have waiting times for MRI scans at Groote Schuur Hospital decreased? Have crime hotspots been effectively addressed? Has learner enrolment been accelerated? Without tangible outcomes, these claims of innovation remain hollow.

Another pressing issue is the Children’s Commissioner, whose independence is critical. Yet, the Department of the Premier continues to undermine this office, offering vague responses, insufficient budgetary support, and preferring to play a central role in recruitment. The Premier must prioritise the protection of this essential institution.

The Premier allocated funds and appointed external consultants to investigate the George building collapse, a major disaster. Yet, despite this budget adjustment process, we have received no update on the investigation’s progress. This silence is unacceptable, especially when transparency and accountability are urgently needed.

Honourable Speaker, the ANC cannot support this adjustment budget without evidence of meaningful reform. We call for an independent cost-benefit assessment of the CEI by SITA to determine whether its current model is truly effective.

To conclude - we are not convinced this budget puts the people of the Western Cape first. From the huge sums spent on an unproven and potentially corrupt IT provider, to the lack of a truly independent Children’s Commissioner and the failure to provide any update on the George building disaster, there is a lack of oversight, evidence and communication on how the people’s money is being spent.

Honourable Premier, leadership is about aligning resources with vision and taking decisive action. It is time for the Department of the Premier to focus on its core responsibilities and deliver governance that serves all the people of the Western Cape.

I thank you.

* Khalid Sayed is an ANC Member of the Provincial Legislature and leader of the opposition in the Western Cape government. 

** The views expressed do not necessarily reflect the views of IOL or Independent Media.