2021/22 North West Provincial Government
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DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION AND TOURISM BUDGET VOTE SPEECH 2021/22 Delivered to the North West Provincial Legislature 27 MAY 2021 HON. Me. KENETSWE MOSENOGI Member of the Executive Council: Economic Development, Environment, Conservation and Tourism Hon. Speaker, Mme Suzan Dantjie; Hon. Deputy Speaker; Mme Viola Ntsetsao Mocumi; Hon. Premier, Professor Tebogo Job Mokgoro; Hon. Members of the Executive Council; Hon. Members of the Provincial Legislature; North West House of Traditional Leaders led by Representatives of all of our social partner formations; Distinguished guests; and Ladies and Gentlemen. ‘Ke a le Dumedisa’
Honourable Speaker, I stand before this august house under very challenging economic conditions exacerbated by the global health crisis imposed by Covid-19 pandemic which has wreaked havoc globally. And importantly presenting this budget vote as we celebrate and honour the life of Mme Charlotte ‘Manye’ Maxeke. She hoped to foster a better understanding of the problems facing urban Africans and championed their potential, particularly women to stand up and take control of their affairs. We remember and honour her as the ‘Mother of Black Freedom in South Africa’. Hon. Speaker, we must commend the stewardship of the South African Government, under the leadership of President Cyril Ramaphosa for the decisive policy responses designed to mitigate the impact of the Covid- 19 pandemic. In the North West Province, the Honourable Premier Professor Job Mokgoro led the Provincial Command Council with decisiveness in ensuring that the social relief programmes meant to cushion the vulnerable communities against the Covid-19 pandemic are implemented. Hon. Speaker our submission on this policy imperative is premised on the following outcomes of the Medium Term Strategic Frameworks for the 6th Administration as follows: Fighting corona virus pandemic; Accelerate economic growth; Implement economic reforms to create sustainable jobs; and Fighting corruption and strengthening state capacity.
Hon. Speaker, the positive growth recorded in the third and fourth quarters was not enough to offset the devastating impact of Covid-19 in the second quarter when lockdown restrictions were at their most stringent. Economic activity for the entire year decreased by 7, 0% in 2020 compared with 2019. It is given that our province is not immune to the economic challenges, which has registered increased unemployment rate to 28, 3% in Quarter 3 of 2020 from 21, 6% in quarter 2. The unemployment rate further increased from 28, 3% in Quarter 3 to 33, 3% in Quarter 4 (StatsSA). Hon. Speaker, the tourism sector being severely affected by the economic impact of COVID 19 as reported recently by Stats SA made the situation even worse given its strategic contribution to the provincial economy. The situation is further exacerbated by; limited water and electricity supply, the poor state of infrastructure, shortage of skilled labourers and rigid regulatory and legislative policies In response to this devastating situation, the Provincial government resolved to have Premier’s dialogue with key industry leaders, to come up with an economic recovery plan and to forge strategic partnership in the implementation of the plan.
DEPARTMENTAL ACHIEVEMENTS FOR THE PAST TWO FINANCIAL YEARS (2019/20 AND 2020/21) SMME AND INFORMAL TRADERS’ RELIEF FUND Hon. Speaker, in response to the devastating impact of the hard lockdown we sought to provide temporary relief to SMME’s and informal traders to ease the impact of the economic slowdown as a result of the pandemic. We received 6362 applications out of which 3876 met the criteria and benefited from the fund. Incubation Programme Hon. Speaker, in our quest to support start-up enterprises to create sustainable entrepreneurs, the department partnered with SEDA to establish Mahikeng Digital Incubation Hub focusing on digital economy and Mogwase Township Manufacturing Hub (Leema) focusing on electronic components, cell phones and tablets. Empowerment Fund The Empowerment Fund is an intervention aimed at supporting qualifying enterprises with machinery and equipment to reduce costs of doing business. A total amount of R2.7 million was spent on procurement of equipment for 15 enterprises in the province. Informal business support The department further supported 65 informal businesses in the Moses Kotane and Rustenburg local municipalities with production machinery and equipment.
Business Turnaround Solutions Hon Speaker, the department in partnership with Productivity South Africa implemented turnaround interventions at a cost of R1.5 million, to improve efficiency for businesses to be sustainable and competitive in order to create and retain jobs. Hon. Speaker, I am happy to report that in 2020/21, 3 companies were successfully placed in turnaround support interventions to retain existing jobs and improve their productivity BUSINESS REGULATIONS AND GOVERNANCE Hon. Speaker, the Department continued to protect the rights of Consumer's interests on the cases lodged. The Consumer Affairs Court has played a significant role as businesses become more compliant with the Consumer legislation. The Department through the Liquor Board adjudicated 382 applications and inspected a total number of 1 055 liquor outlets during compliance enforcements operations with SAPS, SARS and other relevant stakeholders. The programme created 144 jobs for youth covering the whole Province in each Local Municipality to create data base for Liquor outlets, Business and Consumer related issues.
ENVIRONMENTAL SERVICES Hon. Speaker in terms of Environmental Services, the following key achievements are worth noting: environmental authorization waste management licences and atmospheric emission environmental implementation plan for 2020 – 2025 Hon. Speaker, the department successfully hosted its first webinar in March 2021 to share the content of the North West Environment Outlook report. The webinar created awareness on critical issues and trends outlined in the 2018 North West Environment Outlook Report. It facilitated discussions among expert panel members and stakeholders around the responses and management actions to address the environmental issues in the North West Province, and, furthermore, promoted partnerships between public and private sectors in relation to environmental issues in the province. Environmental issues raised in the NW Environment Outlook 2018 report were actioned in the North West Environmental Implementation Plan 2020-2025, which was gazetted on 23 March 2021. The implementation of the EIP will be monitored during the 2020 - 2025 reporting period and progress reported annually to the Minister of Forestry, Fisheries and the Environment, as required by Section 16(1)(b)(c) of NEMA. During the previous financial year, a total of 1168 compliance inspections were conducted. The programme also created a total of 236 work opportunities, for the new financial a total of 150 work opportunities is earmarked in the waste management and biodiversity space for the
current financial year. The programme will focus on clearing of illegal dumping areas as well as sustainable harvesting of medicinal plant species. TOURISM Tourism sector remains a key strategic thrust despite the fact that it was the hardest hit sector, it however managed to register progress on the following key performance areas: Online tourist registration 215 Tourism SMME’s from the NW province managed to access the National Department of Tourism (NDT)’s Tourism Relief Fund; 180 Tourist Guides accessed the Tourist Guide Relief Fund More than 60 Tourism Attractions and Accommodation Facilities were inspected for compliance with Covid-19 regulations Successfully recruited and placed 100 youth on the EPWP Tourism and Hospitality program. BUDGET ALLOCATION To undertake this mammoth task, our Department is allocated R938 096 million in 2021/22 For the current fiscal year, our budget is broken down as follows: Programmes 2021/22 Budget Administration R 199. 959 million Integrated Economic Development Services R 96.864 million Trade and Sector Development R 71.260 million Business Regulation and Governance R 113.519 million
Economic Planning R 16.628 million Environmental Services R 274.435 million Tourism R 165.431 million Total R 938.096 million A total amount of R 334.448 million or 35.6 per cent of the allocation for 2021/22 is earmarked for transfers to the following public entities for the implementation of the departmental mandate. Name of Public Entity Amount North West Development Corporation R 36.588 million North West Gambling R 76.016 million North West Parks Board R 127.192 million North West Tourism Board R 94.652 million Total R 334.448 million DEPARTMENT PLANS FOR 2021/22 Hon. Speaker, one of the key mandates of this Department is to accelerate transformational, inclusive and sustainable economic growth. Whilst we recognize that economic growth and development is a shared responsibility, we are equally aware of the expectation for the Department to provide leadership and facilitate strategic partnerships in this regard. Hon. Speaker, the department will continue to align its programmes to the district development model with the view to streamline service delivery.
Hon. Speaker allow me to acknowledge the work done by previous administrations by finalizing the Integrated Provincial Economic Growth Strategy of the province which was earmarked for the previous financial year. This strategy is underpinned by the need to strategically recover and grow the economy of the province in order to create jobs. In strengthening job creation, we will be hosting the Jobs Summit with organized labour and industries during this financial year. Hon Speaker the department in partnership Provincial Treasury will be finalising the strategic procurement that will inform provincial localisation strategy. The department will strengthen and reposition the North West Development Corporation to ensure that it leads industrial development and related economic transformation programmes in the province. We will also strengthen current agreements with the research institutions such as North West University and the Council for Scientific and Industrial Research to be on the competitive edge. Hon. Speaker, Bojanala SEZ Programme entails building an industrial estate to host investment mixed use zone, capital equipment manufacturing zone, renewable energy zone, agro-processing zone and minerals beneficiation zone. The department will during this financial year revise the business case for the application of the Operator Licence. Hon. Speaker, the SEZ Operator Company will be formalised, before the end of August 2021 and the Accounting Authority will be appointed to operationalise the company.
The Awarding of the Application for the Fifth Casino license remains the biggest plan for 2021/22. This will create more sustainable jobs and lead into more jobs being created in the retail industry and tourism sectors. Hon. Speaker, department through NWDC will continue to disperse the relief fund to support SMMEs and informal traders. We will further demonstrate our commitment by setting aside a budget of R10 million, to rescue the business in terms of recovery programmes. The department in partnership with SEDA will continue rolling out the Digital and Township Hubs in the Province. Hon. Speaker, I am pleased to announce that the department partnered with SEDA to support Township Incubation on a 50/50 funding basis. These incubators play a critical role in providing start-up business development support services in manufacturing and digital solutions. For this financial year we intend to expand the programme to other remaining districts. For the 2021/2022 financial year, 10 additional companies will be placed in turnaround intervention programme to improve their productivity, retain existing jobs or expand their capacity and job creation. In supporting SMMEs and cooperatives through Empowerment Funding an amount of R15 million has been set aside Hon. Speaker, over and above this, the department will implement Informal Trade Market Programme at a budget of R10 million targeted
at supporting municipalities to establish informal traders market that will support the integration of the informal trading businesses into beneficial buyer groups and distribution networks. The land earmarked for this Project has been released by Council and consultation with beneficiaries on designs options are in process. The Project is implemented in partnership with Mamusa Local Municipality and Dr. Ruth District Municipality. The approved design will determine the carrying capacity for the trade market. Hon. Speaker, the department has also set aside an amount of R8 million in an effort to boost sustainable trade markets and permanent flea markets in collaboration with key municipalities and stakeholders to ensure that this sector creates the much needed jobs for our people in the North West Province. This intervention is intended for the Mahikeng Trade Market Project. Hon. Speaker, in the quest of skills development, the department has partnered with Automotive Industrial Development Centre (AIDC) to implement Youth Automotive Skills Development Programme at a budget of R3.8 million. I am happy to announce that to date 120 youth in Bojanala and Dr. Kenneth Kaunda have been placed in the programme. We will continue with the programme in this current financial year. In an effort to create jobs the department will implement Youth Technical Skills and Infrastructure Maintenance programme at a budget of R6.7 million. The programme will empower youth skills in road marking and pothole patching in partnership with municipalities, in 2020 we promoted this intervention with a number of Municipalities that have already provided budget for Road Marking and Pothole sealing. The
Department will be providing work gear, training on pothole repairs and stipend for the participating youth. This programme will be implemented in 2021/22. Hon. Speaker, the business skills play a huge role on the success and failure of our SMMEs and Cooperatives, in addressing this, the department will implement Business Advisory Programme. Department has entered into an agreement with Service Sector Education and Training Authority (Services SETA) as our implementing agent to call for applications from unemployed graduates within the province to be trained as Business advisors. I am happy to announce that the advert is already published and will close on the 31st May 2021. The programme will create one hundred (100) business advisors in the province. The graduates will be empowered with the aim of opening their own business coaching enterprises and to train 5 SMMEs each as per contract deliverables. Hon. Speaker, the department in resuscitating our economy in rural villages will be implementing Township Bakery Skill Support Programme at a budget of R1.3 million for its first year of implementation. Hon .Speaker, will provide support and enhance the productivity of 10 township and village bakeries and confectionaries. The programme will be implemented over a three year period. Additional to this is skills development in the energy efficiency and green energy space, where in 10 young women will receive training and be assisted to register their own companies.
Hon. Speaker, in the attempt to contribute towards mitigating the impacts of climate change, the department is partnering with private sector in the roll out of mass propagation of Spekboom. The project is linked to community based and youth owned nurseries in the Four (4) District Municipalities. The project focus on training, provision of Spekboom seedlings & related tools of trade to sustain and expand the work opportunities within the agricultural sector. Hon. Speaker, the North West Parks Board continues to provide skill development programme for the CPAs and communities around the Parks in order to expand their legibility to benefit from emerging economic opportunities. Hon. Speaker, the North West province through this department intends to host Provincial Job Summit aimed at addressing in the main the twin challenges of slow economic growth and resultants high unemployment rate. The summit themed “GROWING THE ECONOMY TO CREATE JOBS” will look at enablers such as quality economic infrastructure to support advancement of a growing economy that is inclusive, diversified and competitive. Stakeholders will be expected to identify and develop implementable and measurable plans to unlock and accelerate economic growth that is inclusive, transformational and sustainable. Part of the plan is to develop a measurable social compact between government, private sector, higher education and organised labour, civil society on economic growth and job creation. Hon. Speaker, the summit will also afford the province a platform to follow-up on commitments affecting the province which were made at platforms such as National Jobs Summit, National Investment
Conference, Provincial Investment Conference; and the most recent engagement of the Premier with Captains of the Industries. The summit will be held in the last week of September 2021. To demonstrate our commitment, we have reprioritized job creation as department by making sure that all programmes have an element of job creation. Hon. Speaker, provision and maintenance of economic infrastructure continues to be one of the main challenges confronting emerging and existing business in the Province which constrain their production capacity and the ability to benefit from the production economies of scale. This dearth of economic infrastructure in turn leads to business being uncompetitive. The available retail and industrial space is often priced to the exclusion of many business in the Province. In an attempt to alleviate the operating economic infrastructure challenges, the North West Province resolved on the process to work towards the completion of all outstanding projects and refurbishment of old industries in various district of the Province. Hon. Speaker, this financial year we will be finalizing the two outstanding projects at Taung Hotel School, Student Residence on a budget of R14 million and 2 Lecture halls and Demonstration kitchen is projected at R18 million, and we have just finalized the bulk earthworks, water pumping system and sewer treatment facility. We will also be finalizing the Orkney Hotel School on a budget of R11 million. These facilities has a potential to boost tourism by increasing more economic
opportunities to the surrounding community and young people and women in the hospitality. National Department of Tourism have committed to finalize Manyane and Letlamoreng Dam as Development Bank of South Africa has been appointed to assess the current state and to develop an implementation plan. Tourism infrastructure and tourism supporting infrastructure are key to the growth and development of the tourism sector. Hon. Speaker, despite the poor financial situation of the North West Parks Board, three key infrastructure development projects in protected areas are earmarked for this financial year viz. Staff accommodation & ablution facilities in Bloemhof dam, A 40 bed electrified tented camp site with conference facility at Borakalalo Nature Reserve and Tourism infrastructure at Vaalkopdam. Infrastructure projects inside protected areas create the much needed work opportunities and also support SMME within communities surrounding protected areas. The entity commenced with the final planning phase of the Vaalkopdam Tourism Infrastructure development project, at a budget of R15million. Hon. Speaker, we need continue to set aside 30 percent of our provincial goods and services budget to procure from our local SMMEs without fail. We should also undertake to pay our SMMEs within 30 days as the law dictates, and there must be consequences for those who fail to comply. Working with Provincial Treasury, we will monitor this closely and report this to the Executive Council on a monthly basis. Hon. Speaker, the Department will implement a programme to localise sourcing of products from local SMME’s Supplier. In 2020/21 the department together with Provincial Treasury appointed the University of
the Northwest to conduct a research on identifying key products that government procures from within and outside the province. The research findings will be made available by the end of the first quarter in 2021/22. For financial year, the focus will be on localising ng 30 most procured products. The Provincial Treasury has already revised the Provincial Procurement Strategy to deepen local sources to support local SMME’s and Cooperatives that are registered in the province to retain, sustain and grow jobs. Hon. Speaker, the department has created an efficient and effective regulatory environment that allows businesses to operate within the prescribed legislations. The department will be implementing new business licencing Act this financial year across the province which will assist in improving the compliance of business in various municipalities and revenue generation for the province. The awareness on the implementation has already been conducted, The department will continue to be 100% effective in finalising Environmental Authorisations (Environmental Impact Assessments (EIA), Waste Management Licenses and Atmospheric Emission Licenses) within legislated timeframes. Hon. Speaker, there is a huge non-compliance by the municipalities to manage their land fill sites. 1060 inspections will be conducted and 26 administrative enforcement actions will be undertaken resulting in more visibility of Environmental Management Inspectors, compliance monitoring and enforcement of environmental legislation. While
strengthening compliance of Municipalities in their management of Landfill sites, the Department will continue to coordinate and implement clean up campaigns throughout the province. Municipalities that are failing to comply with the conditions of their Landfill site licenses will have to face the consequences of noncompliance. Those who have exhausted the mercy of administrative enforcement will have to face the criminal enforcement process. Hon. Speaker, service delayed is service denied to the populace of this province. It is about time that the people of this province must enjoy living in a clean and healthy environment that poses no danger to their wellbeing as is clearly stipulated in the Constitution of South Africa. Environmental Cleaning & Awareness Campaigns will continue in support of the Good Green Deeds programme to ensure the creation of sustainable youth jobs and alleviation of poverty. Hon. Speaker, tourism is among the sectors most affected by the outbreak of Covid-19 and therefore urgent support is required given the millions of jobs that are at risk. Travel and Tourism is also uniquely equipped to be part of global recovery efforts going beyond tourism. Specific mitigation packages are further required to sustain jobs and ensure capacity in the market in the immediate aftermath of the emergency. Tourism’s economic and social footprint dwarfs that of any other economic sector. Hon. Speaker, as alluded earlier that Tourism Industry was the most hard hit and negatively impacted, as we have lost international tourist due to closures of the borders, even locally, domestic tourism numbers have gone down tremendously as in general there is a phobia to travel,
but we continuing to engage with industry players. In collaboration with Deputy Minister of Tourism, Mr Fish Mahlalela we engaged industry in a 2 week long programme within Bojanala District Municipality as the hub and center of Tourism in the Province, to try and understand the challenges the industry experienced, but also to contribute their proposals as part of the Tourism Economic Recovery Plans as launched by the National Minister of Tourism Hon.Speaker, in resuscitating the sector department will host Cultural Tourism Guiding Content Development seminars in the four districts. The outcome of this project will be booklets which inform the product knowledge that about tangible and intangible heritage in the North West, including but not limited to cultural histories and practices of various people as well as cultural attractions such as monuments and museums in the province. Hon.Speaker, department will also implement Illegal guiding awareness inspections in compliance to Covid 19 regulations across the province to educate all accommodation facilities, tourism attractions, tourist guides, tour operators etc, the importance of registering as tourist guides and using services of qualified and registered tourist guides by tourists and using compliant facilities. Hon.Speaker, despite all the challenges, we have empowered and capacitated 30 tour operators in Digital Marketing, which is using the latest social media platform to market their Business. Hon.Speaker, it was as if we predicted that we would find ourselves in the new normal of digitized world based on the current pandemic we all find ourselves in.
In collaboration with National Department of Tourism we successfully placed 100 Tourism safety Monitors across the four districts of the Province, in all the tourism crime hot spots, this assisted as the levels of crime were reduced and Tourism industry was eased to opening its doors. Hon. Speaker, the Hartebeespoort Dam is an area enjoying international recognition. As such, the department, together with other relevant key stakeholders, is implementing the Hartbeespoort Dam Action Plan. This Department will, specifically, chair the Hartbeespoort Dam Coordinating Committee, which has been resuscitated during the past financial year. Support will also be provided with the biomass- and debris management of the dam, where 20 EPWP contract workers have already been appointed to assist with the cleaning of debris in and around the dam. A fish population assessment will be done to inform future management actions of the dam. The Implementation Protocol among NW DEDECT, DFFE and DWS on the remediation and management of the Hartbeespoort Dam and catchment area will be finalised and implemented during the 2021/22 financial year Whilst we appreciate that our role as the department is to market the province as a destination of choice, we are also cognisant that in doing so we must offer quality product and experience. Having noted the decline due Covid 19 and other challenges. There is a need therefore to massively invest in maintenance of existing tourism facilities and development of new tourism products. The tourism industry among others thrives on competency, innovation and partnership. Therefore, North West Tourism Recovery Plan has
been developed to revitalize the competitiveness of the destination. The outbreak of covid-19 has exposed some industry weaknesses as well as lack of systems in place to manage the crisis. It now calls for more innovation within the industry as well as strong partnership to rebuild the tourism economy. Hon. Speaker, the department has public entities that are expected to play an important role in the provincial economy. They are significant vehicle for achieving economic growth and poverty reduction in the province. Also contribute for promoting tourism, promoting the development of biodiversity economy, industrialization, SMME development, youth development, property management and the creation of an enabling environment for investment facilitation and promotions in the Province. In terms of the PFMA, the Department has 4 listed entities, of which one (1) is listed as schedule 3D entity and three (3) as schedule 3C entities. Hon. Speaker, it is a common knowledge that most of the state owned entities are faced by various challenges, more on financial management and good governance. In addressing this the National Treasury advises the national, provincial and local government to consider rationalization of entities in order to get value for money. As most of our entities are characterized by poor performance, poor financial management, and poor governance, low levels of accountability as well as lack of consequence management as demonstrated in the Audit Opinions of the Auditor General of South Africa. Furthermore, government is inundated with a lot of request for additional funding (bail out) and yet no consequence management is being implemented in the entities.
Hon. Speaker, in addressing the rationalisation, the province responded through the pronouncement by the Hon. Premier of merging parks and tourism Board. We were expecting that the merger should be finalised before the beginning of the 2021/22 financial year to ensure that the merger of the two entities into one is effective from beginning of April 2021. However, due to other challenges the merger is not yet implemented, the department will continue to work together with the oversight structures (Portfolio Committee) and Legislature to ensure that this pronouncement get implemented. Hon Speaker, We will not tolerate the dismal state of affairs existing in our entities. We are going to strengthen our oversight over the entities for which we are responsible. We will tighten our shareholder compacts to hold the boards to account for the performance of the entities. Furthermore, we will ensure the that the shareholder compacts, as well as performance agreements of the Executive Management are revised during this quarter so as to incorporate the action plans on the audit outcomes. In this way, we will be able to effectively monitor the implementation of corrective measures and this will further enable us to take timely decisions. Hon. Speaker, this department carries the hopes of many. It carries the hopes of those looking for opportunities for employment, for trade and for investment. This Department is expected to play a leading role in the transformation of the provincial economy in steering skills development, job creation, SMMEs and Cooperatives development, infrastructure development and promote localization. It is therefore vital that it is properly resourced and positioned to carry out this mandate to the benefit of the people of the province.
We have now completed the reconfiguration process that was meant to align the mandate and functions of the department. The process has an impact on the vacancy rates, where a total number of 192 posts linked to the Tourism functions, total number of 203 filled posts attached to the Environment and Conservation Services function, and total number of 218 filled posts attached to the former EED Department have been transferred to DEDECT. Which resulted to 613 vacancy rate in the department. The matching and placing was finalised and 23 employees were found to be in excess of operational requirements and 21 employees were transferred to the Department of Human Settlements at their request. The other 2 officials were absorbed within the Department. The department has also developed an ideal organisational structure which will allow the department to perform its functions effectively and efficiently. The departmental and entities APPs aligned to avoid duplication. In this regard, we are confident that the Department and all our entities will be able to address gaps in our service delivery model to improve economic development and investment in the province. Hon. Speaker, in affirming the commitment that we make today , would like to close by a quote(translated from isiXhosa to English)from our stalwart Mme Charlotte Maxeke suggests that in order for Africa’s problems to be solved, the movement to freedom needs leadership who lead by example, she said, “Our salvation lies in the leadership by men who lead by example, men who love Africans more than they love themselves, men who preach unity and not discord, men whose actions are a lesson and do not simply say empty words”
I wish to take this opportunity to thank the stewardship of the Hon. Premier and the wise counsel of colleagues in the Executive Council, Portfolio Committee, my family, Chairpersons and Board members of our entities, and CEO of our entities, Management and staff of the Department and entities, as well as the staff in my office for their support and commitment towards the realization of a pragmatic vision that we have shared with you today. Moreover, I thank my organization, the African National Congress, for having given me an opportunity to serve the people of our province in this capacity. I thank you all.
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