Committee Report on Department of Public Enterprise 2012 Budget

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Public Enterprises

10 May 2012
Chairperson: Mr. P Maluleke (ANC)
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Meeting Summary

Members deliberated and adopted with amendments its report on the Department of Public Enterprise budget for 2012.
Members queried the figures and periods listed on the budget table and requested feedback after an investigation had been made. They also highlighted the need for the Department to continue to engage with them with regard to reasons for continued decline in budget allocations and delays in the implementation of targets for the infrastructure programme. They also expressed concern at the need to find ways of increasing the human resource staff capacity of the Department without directly employing new staff members.

Members expressed concern at the lack of power by the Minister and Director General in holding Public Enterprises such as Transnet accountable. They differed with regard to the solutions to the problem. Mr A Mokoena (ANC) suggested an enactment of a new customized, taylor- made piece of legislation to address the challenge.  While Ms C September argued that a more feasible solution was the amendment of current existing legislature.

Members were also divided with regard to when the matter should be addressed.  While some Members felt the issue should be addressed during the review of the Budgetary Review Report. Other, Members felt that the issue should be included in the Committee observations section.

COPE and DA members stated that they could further deliberate on the contents of the report within their parties. Nonetheless, the report could be submitted through to the National House Assembly and should irregularities be found after their deliberations amendments could be made.

Meeting report

 

Apologises were made on behalf of Mr K Dikobo (AZAPO).
Committee Report on Department of Public Enterprise (DPE) 2012 Budget
The Chairperson took the Members through the Report on Public Enterprise Budget Vote 11 and Strategic of DPE for 2012/13 – 2016/17.

Mr Disang Mocumi, Committee Secretary, highlighted to Members that table 4.1 had been modified along Treasury specifications.

Ms G Borman (ANC) and Ms N Micheal (ANC) queried the 693.98% on real change, stated on the Legal and Governance Programme.

Ms C September (ANC) explained that she felt that the figures were accurate; however, the final percentage figures were derived from the method used to explain the real change.

The Committee Researcher explained to Members that the figures had been obtained from Treasury and the percentages were computer generated. However, he assured Members that an investigation could be carried out and feedback could be provided.

The Chairperson reiterated that an inquiry could be made and written feedback could be provided to Members.

Dr G Koornhof (ANC) noted that an error existed regarding the period covered on the budget table. The periods listed on the budget side did not speak to the periods on the Nominal Rand Change, Real Rand Change, Nominal Change % and Real Change % sections.

Members agreed that should the investigation reveal an error in figures changes should be immediately made.

The Chairperson noted that an alteration should be made with regard to the figure listed in section 7.2, regarding the recommendation made to expand the human resource capacity of the DPE with approximately 45 additional employees with specialised technical skills in order to effectively execute its shareholder management responsibilities. He noted that the number 45 should be deleted as a specific figure could not be allocated.

Mr Koornhof argued that recommendations should be made to increase DPEs’ staff’s human resource capacities without necessarily employing additional staff members.

Ms September emphasised that DPE should continue to engage with Members with regards to the reasons for the continued decline in the budget and delays in implementation of the infrastructure programme. Consequentially, the Committee would then be in a better position to make its own recommendations and form an independent opinion.

Ms September emphasised that DPE should provide a time frame regarding its Strategic Role listed under section 3.3.

Mr M Nhanha (COPE) highlighted that while it was not part of the Department’s Strategic Plan; he felt that Members should make recommendations on the concerns previously raised by the Director General regarding his lack of power to carry out DPE’s mandate of holding Government entities such as Transnet accountable.

Mr A Mokoena (ANC) and Ms Micheal seconded this notion.

Dr Koornhof replied that while it was a valid point, the issue could be addressed when the Members considered the Budget Review Recommendation Report (BRRR).

Ms Borman noted that the recommendations should be highlighted under committee observations.

The Chairperson reiterated that the issue could be raised in the BRRR.

Mr Mokoena held an alternative view he felt that after the tabling of the Presidential Review Committee report a new legislation should be tabled to Parliament empowering the Director General and the Minister to carry out their mandates.

Ms September felt that the solution provided by Mr Mokoena was a long term and not an immediate solution. A more feasible solution was to make amendments to the existing legislature such as the Public Finance Act.

Mr Mokoena was dissatisfied with the suggestion put forward by Ms September. He argued that a customised, tailor-made piece of legislation was necessary to empower both the Director General and the Minister. He felt that the issue should be included in the recommendations of the budget vote report.

Members of the DA and COPE stated that they still had to deliberate over the contents of the report with their parties.

Mr Mocumi reminded the Members that a delay in adoption could delay the report in the House of Assembly.

Mr Mokoena assured the Members that should deliberations within their parties highlight irregularities within the report, they still had an opportunity to make further amendments in the National House of Assembly.

Members concurred that the report should be pushed forward after the highlighted amendments were done.

Mr Mokoena moved for the adoption of the report.

Ms September seconded the move.

The meeting was adjourned.


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