Independent Development Trust Annual Report: briefing

Meeting report

PUBLIC WORKS PORTFOLIO COMMITTEE
9 APRIL 2003
INDEPENDENT DEVELOPMENT TRUST ANNUAL REPORT: BRIEFING

Chairperson: Inkosi M Hlengwa (ANC)

Document handed out:
Independent Development Trust Presentation
Independent Development Trust 2001/2002 Annual Report [Hard copy only available e-mail [email protected] for report]

SUMMARY
The Committee was briefed by the Independent Development Trust on their Annual Report and annual financial statements. They outlined the operations of the Trust and their internal and external challenges.

MINUTES
Presentation by the Independent Development Trust (IDT)
Dr LuIu Gwagwa, CEO of the (IDT), apologised on behalf of Mr Eddie Funde, IDT Chairperson, for his absence.

Ms Romana Moodley, IDT Director: Finance, proceeded with IDT's presentation, which provided a brief background on the IDT, the changing role of the IDT and its mission statement, the functional structure of IDT and its capacity and the IDT client profile and programmes. As this was lDT's first Annual Report, it focused on the operation of the company. She proceeded with the financial report which covered IDT's funding, investment strategy, annual and financial statements.

Dr Cwagwa concluded the presentation by outlining on the internal and external challenges facing the lDT. External challenges include the need for clarity on their mandate to the public and co-ordination of stakeholders. Internal challenges include the need to consolidate and align the systems and business processes.

Discussion
Mr N Magubane (ANC) wanted to know who comprised IDT's partners and whether they supported those in rural areas.

The IDT replied that their main partners are government Departments, as the Trust oversees the programmes run by the various Departments. The IDT also has partners at provincial level, such as the KwaZulu-Natal Provincial Public Works and Education Departments. It also has partners at local level.

Mr Magubane was interested in lDT's roles with respect to NGO's.

The IDT responded that from 1990-1999 IDT worked with NGO's and communities. Currently, the IDT is focussed on increasing the capacities of local municipalities. Its thrust is around the delivery by municipalities.

Mr S Opperman (NNP) questioned the opening amount of R1, 3 billion cited in the Annual Report. As far as he knew that amount was R2 billion.

The IDT responded that it is R2 billion. The funds had been used in disbursements over the past few years.

Mr Opperman queried the R12 million in loans that were written off. Is Minister Sigcau permitted to request funds?

The IDT replied that there is only one such loan, which dates back to the 1990's. The R12 million was made up of two loans, but because the funds could not be recovered from the two housing companies concerned the loan was written off.

Mr Opperman sought clarity on the once-off grant to the National Development Agency (NDA).

The Chair asked for the rationale in moving money to the NDA.

The IDT responded to these questions by stating that this R100 million loan was earmarked for the start up costs of the NDA.

Mr K Moonsamy (ANC) asked whether the IDT Members were full-time or part-time Members.

The IDT responded that its board members are not appointed as full-time members,

The Chair asked whether the lDT is still involved in KwaZulu-Natal.

Ms Moodley replied by referring the Committee to the presentation slide entitled "Programmes Profile" for further information regarding the projects that are run in KwaZulu-Natal. She stressed that the IDT's involvement in KwaZulu-Natal is becoming more and more entrenched as it enters into agreements with organisations and companies.

A Member (ANC) requested a breakdown of the projects in which IDT is involved in the Eastern Cape, so that the allocation to the projects could be determined

The IDT replied that the specifics could be made available to Members on request.

A Member (ANC) sought clarity on what is meant by poverty alleviation. Is this only focussed on the alleviation of hunger?

The IDT responded that it is very much involved in government's poverty alleviation initiative. The Public Works Ministry determines the programme investments. The IDT is focussing on both hunger alleviation, and also on education and health.

Mr J Blanche (FA) asked how much has been invested in job creation, and what the result has been.

The IDT responded that the IDT'S representatives have confirmed that no research has been done in this area as yet, primarily due to the costs involved.

Mr Opperman asked whether the decision to change the IDT's mandate had been reached in consultation with the Minister of Public Works (the Minister). The IDT's mandate has changed; yet the funding remains with IDT.

Ms Moodley responded that her sense was that the decision was made in consultation with the Minister. She could not however confirm this, and would inform the Committee as soon as possible.

A Member (ANC) requested an explanation for the decrease in IDT's income.

The IDT responded that this is due to the investment of lDT funds in cash and bonds. The fluctuating interest rate has a negative effect on the IDT funds. Its administration costs have also increased because of the number of projects in which IDT is involved.

The following questions do not appear to have been answered:
Mr Moonsamy asked how many people have thus far benefited from lDT's projects.

A Member (ANC) requested a breakdown of the IDT's audit performance, as stated in the Annual Report.

In concluding the meeting the Chair suggested that the Committee researcher be included and invited together with IDT to disseminate the information that had been presented.

The meeting was adjourned.