2023/24 Annual Reports of the Department of Agriculture and Casidra

Meeting report

[at the beginning of the meeting, Interactions were held with the Auditor-General of South Africa (AGSA) and the Cape Agency for Sustainable Integrated Development in Rural Areas (Casidra) Audit and Risk Committee on the 2023/24 audit outcomes of the Department of Agriculture and Casidra. This part of the meeting was closed to the public]

When the open session began, the Chairperson indicated that the Minister would be arriving later. He invited the Casidra delegation to start hoping that the Minister would join the meeting before the interaction with the Department.

Casidra 2023/24 Annual Report
Mr Christo van der Rheede, Chairperson of the Board of Casidra, thanked the Chairperson for the opportunity to present the audited financial statements to the Committee. He was proud of the clean audits over the past 35 years, although the bigger question was about the extent to which Casidra could make a meaningful impact or improvement on people's lives. This would be his key focus as a recently appointed Chairperson of the Board. He thanked the Chairperson of the Casidra Audit and Risk Committee, Ms Crystal Abdoll, CEO, Dr Keith du Plessis, CFO, Mr Freek van Zyl and the rest of the management team for their hard work in ensuring a compliant set of financial statements that was reflective of the work of the entity.

Dr Keith du Plessis, Casidra CEO, thanked the Chairperson of the Audit and Risk Committee, Ms Abdoll, for assisting the team in providing good financials and maintaining a clean governance record. The goal is to ensure that the good results translate into improvement in the lives of people in the Western Cape. A number of food security and agricultural support programmes were implemented during the year and the year ended with a profit of approximately R1.8 million. He was satisfied with the current state of the entity and was hoping for the same good results in the new year in terms of uplifting the community with the assistance of the Board.

The Chairperson announced that the Minister had since joined the meeting. He had earlier expressed his pride in the good work of Casidra.

Minister’s opening remarks
Dr Ivan Meyer, The Minister of Agriculture in the Western Cape, said the entity went through a dip with the previous CEO but significant changes in product delivery and financial performance were observed since the appointment of the new CEO. In the last term, Mr Van der Rheede was appointed to succeed Prof Johann Kirsten as the new Board Chairperson. He was satisfied with his work in the current financial year. The successful handover took place in a meeting which included the Minister and the Chairperson of the Audit and Risk Committee, Ms Crystal Abdoll. The Minister also met with AGSA and members of the Audit Committee. With more than three decades of excellent financial performance, Casidra is the benchmark for the rest of South Africa.

Discussion
The Chairperson allowed Members to ask two questions each on the relevant parts of the Casidra Annual Report, namely  Parts C, E and F.

Part C: Governance (pages 31 to 39)

Ms N Nkondlo (ANC) said she had difficulty with the framework in Part C because it differed from other reports. It is stated on page 39 that the combined assurance framework has not yet been implemented due to the size of the organisation. She sought clarity on whether this meant that the risk strategy was not yet developed. She was interested in the risks facing Casidra.

Ms P Lekker (ANC) asked if board meetings, noted on page 32, were compulsory and the reasons if it was not compulsory. The Audit and Risk Committee nominates the independent external auditor for the Casidra project. What were the additional costs involved? Could the internal auditors of the Department not be used instead?

Minister Meyer replied to Ms Nkondlo about the general risks facing Casidra. The Western Cape had four major floods in the period under review. He would therefore regard climate change as a major risk. The report reflects how Casidra dealt with the risks.

Dr Du Plessis (CEO) said an external service provider was appointed to assist in development of a risk framework and policy which would be approved in the quarter three Audit and Risk Committee meeting and by the Board in February 2025. Much work has been done to identify risks and how to use them as opportunities. The internal audit team scrutinised the framework and the policy in the past month. Their input was incorporated in the document that would be tabled at the Audit and Risk Committee meeting.

Mr Freek Van Zyl (CFO) said board and committee meetings were compulsory. Majority of the board members were appointed halfway through the year and others resigned in the first half of the year, hence it appeared in the table as if meetings were not attended. He replied to Ms Lekker that AGSA was responsible for the predetermined objectives of Casidra while external auditors were responsible only for the verification of the year-end financial statements. This would not result in lower audit costs.

Ms Lekker noted the large number of board member resignations, which she found disturbing. Were exit interviews conducted, and what lessons were learned about the resignations?

Dr Du Plessis (CEO) said it was the end of the term for several board members. This was followed by an active nomination and recruitment process to recruit new board members. Although some board members did resign earlier during the year, the bulk of the resignations related to a normal cycle.

The Chairperson directed Members to move on to the next part of the report.

Part E: PMFA Compliance Report (pages 45 to 52)

Mr L Van Wyk (DA) said the supply chain management (SCM) report on pages 51 to 52 appeared to be a fairly limited list of bids. Given the SCM challenges, he wanted to know if the limited bids were related to the nature of the projects.

The Chairperson asked for an explanation of the massive expansion of the Synergy Greenhouses contract, listed on page 52, for additional work after the storm.

Ms Nkondlo noted the condonation of Irregular Expenditure on page 46. What were the reasons for the condonement? Did consequence management take place? What specific irregularities were revealed by the investigations? It was concerning that the value had increased exponentially compared to the previous financial year. Why was there an increase in the ‘Fruitless and Wasteful Expenditure’. She was concerned about the number of transactions under limited bidding for such a small entity.

The Chairperson asked if control measures were in place to prevent a reoccurrence of the Fruitless and Wasteful Expenditure amounts recovered.

Dr Du Plessis (CEO) said details of the additional work after the storm would be provided.

Mr Van Zyl (CFO) said a thorough process was being followed to investigate ‘Fruitless and Wasteful Expenditure’ in terms of the guidelines. Matters are addressed either through a disciplinary process or the recovery of the costs. The condonement was related to an amount that could not be recovered. Another amount was anticipated to be recovered in the next two months. The limited bids were linked to limited market access, such as when only one supplier can be used. He said he would provide the value of the original Synergy Greenhouses contract in writing.

The Chairperson said the original contract value for Synergy Greenhouses was R43 000 and the expansion was for almost R2.5 million.

Minister Meyer agreed that the expansion of the contract value warranted an explanation.

Mr Van Zyl (CFO) replied that the details would be provided in writing.

The Chairperson said the issue would be noted as a Committee resolution.

Ms Nkondlo requested that the resolutions should include a detailed explanation of Irregular Expenditure. Mentioning the process was not enough. On a previous occasion, Casidra had to dismiss a SCM official for irregularities. It was important to obtain details of the specific expenditure in the report.

Ms Abdoll, Chairperson of the Audit and Risk Committee, said management should be able to deal with the Irregular Expenditure question. The expense was incurred almost three years ago. National Treasury conducted a review based on several queries made by a particular supplier who did not win the tender. The review revealed non-compliance with some of the regulations. National Treasury determined that there was value for money and the Provincial Treasury then condoned the expense.

Ms Lekker referred to the note on page 46 on the non-disclosure of interest. She asked for the background story of the note.

Mr Van Zyl (CFO) replied that the matter was investigated which led to the dismissal of the person involved. It was found that some orders did not match the delivery. The matter was reported to the police and a case number was obtained. Most of the transactions were awarded to a company registered on the Central Supplier Database (CSD). Still, a cellphone number of the company was found to be linked to a Casidra employee. The invoices were in the company's name, but the employee did not disclose his interest in this company. The cases where no value for money was identified, were registered with the police for investigation.

The Chairperson asked about the item on ‘Late or Non-payment of Suppliers’ on page 49. Did Casidra not obtain a record of invoices received or paid up?

Mr Van Zyl (CFO) replied there was nothing to report concerning this item.

The Chairperson said departments would usually report on the number of invoices received and paid even if there were no outstanding invoices.

Mr Van Zyl (CFO) said he would include the required detail in future.

Ms Nkondlo asked how the matter of disclosure of interest was handled in Casidra, both on a board and management level, especially concerning SCM.

Dr du Plessis (CEO) explained that disclosure formed part of the appointment process. A workshop was held in the past week to explain the importance of disclosing any business interest or other work of employees and board members. The active process involved signing a Disclosure of Interest form and a declaration of business interest before every meeting.

Mr Van Zyl (CFO) said various awareness campaigns were being held and the declaration of business interest was a standing agenda item for all management, Board, and committee meetings. Staff and board members were required to update the Disclosure of Interest form at the beginning of each year. Breaches are dealt with accordingly.

The Chairperson again drew attention to the note on page 49. He questioned the accuracy of the information in the report given that no detail about any invoices received, paid or outstanding was noted on page 49. He requested the detail to be provided in writing because it could not be correct that there were no transactions. He moved the discussion on to the next part of the report.

Part F: Financial Information (pages 54 to 81)

Mr P Johnson (DA) questioned the basic salaries of the ‘Prescribed Officers’ on page 70. He noted an increase of about 8% in cost to company for the CFO and COP positions and about 35% increase for the CEO position. He asked for clarity on the difference between the 8% compared to the 35% increase.

Ms Lekker referred to the vision of the company on page 58, which was to be the catalyst for growth towards self-sustainable communities. She asked which analytical tools were used to identify the communities that should be assisted and how climate change was impacting poverty alleviation efforts.

Ms Nkondlo said according to AGSA’s assessment of Programme 3, it achieved 50% of its targets and the reason for the underachievement was attributed to a demand-driven target. She wanted to understand the wisdom of demand-driven targets because it was dependent on external factors. She proposed an engagement with the HOD on the matter. On the SMART principle, targets should be achievable and within the control of the company. The specific targets not achieved were similar to the underperforming targets of the previous year. The outcome required a rethink of this type of target setting. The R6 million ‘Contingent Liability’ on page 73 was linked to a matter which started three years ago. She noted that Casidra was opposing the matter in court and wanted to know the state of the situation.

The Chairperson referred to the note on ‘Cash and Cash Equivalents’ and page 65. He asked for an explanation for the R5.7 million decrease in the ‘Cash in Bank’ balance, from more than R6 million to R1 million. It appeared that the R5.7 million was transferred to ‘Cash Investments’ account.

Dr Du Plessis (CEO) said the 35% increase was not a direct salary increase. It must be taken into consideration that he was appointed in June 2024. The selection of projects depends on the Department. Beneficiaries apply through the Comprehensive Agricultural Support Programme (CASP) and a Commodity Project Allocation Committee (CPAC) adjudicated the projects. Casidra would then implement approved projects if it was located within the province. The Chairperson of the Audit and Risk Committee did raise a concern about demand-driven targets. The targets had since been reworked and no demand-driven targets were set for the new five-year cycle.

Mr Van Zyl (CFO) explained that the ‘Contingent Liability’ arose from a case brought against more than five respondents including Casidra. A contractor sprayed herbicides which reached the crops of a nearby farmer. The case against some of the departments was dropped. Casidra was working through its attorney to do the follow-up and was awaiting confirmation on whether a decision was made or if a court date was set. He explained that ‘Cash in Bank’ was invested on a month-to-month basis to provide enough cash to pay the bills. It could be that the bank offered a higher interest rate on short-term investments at the time. On the increases for ‘Prescribed Officers’, he explained that in December 2023, staff received an increase backdated to 1 April 2023. However, pension fund contributions could not be paid over as a company contribution in December and were therefore allocated to basic salaries. As such, the year-on-year comparison in basic salaries appeared skewed.

Ms Nkondlo asked for an explanation for the interest received on external investments as per note 21.

Mr N Masipa (DA) said the ‘Contingent Liability’ matter had been going on for too long. The lawyer fees appeared not to be disclosed in the report. He wanted to know the amount of fees paid to the lawyers.

Mr Van Zyl (CFO) replied that no further costs were incurred. The other parties were invited but did not attend the meeting which was arranged by the attorney. He replied to Ms Nkondlo that Casidra only invests with South African registered banks. The interest for the year was received on the bank and call accounts.

The Chairperson thanked the Casidra delegation for responding to the questions. The Committee would be sending notifications of the resolutions and would expect a response from Casidra.

Dr Du Plessis (CEO) thanked the Minister and the Department for their support.

Mr van der Rheede, Chairperson of the Casidra Board, wished the Minister all the best for the next session.

Minister Meyer noted the Member’s comments about the ‘Contingent Liability’ issue from the previous session. The philosophy was to ‘let sleeping dogs lie’, because following up on the matter could result in a claim. He agreed with the Chairperson’s input on the Public Finance Management Act (PFMA) Supplier Report and noted the comments on the limited bids. Casidra would respond to the Committee on these issues. He thanked Casidra for another clean audit and the Audit Committee and AGSA for applying the Combined Assurance Model which contributed to the clean audit.

The Casidra delegation was then excused from the meeting.

Department of Agriculture 2023/24 Annual Report
The Chairperson invited the Minister and the HOD to make their remarks.

Minister’s remarks
Minister Meyer expressed his appreciation for the work of the Internal Auditors, Programme Managers, External Audit Committee Members, and AGSA for the support and current status of the financials of the Department. The Department had experienced extreme difficulty in the past year as it related to the major floods. The late and non-payment of suppliers on the Casidra report would not be found the Department’s report. Casidra could learn from the Department in this regard.

Dr Mogale Sebopetsa, Head of Department, said agriculture was a complex biological system that interfaces with other systems. The Department met almost 95% of its targets for the year under review. Agriculture is big business and deserves the support of everyone to be sustainable.

Discussion
The Chairperson invited Members to comment on the relevant parts of the Department’s Annual Report, Parts C, E and F.

Part C: Governance (pages 141 to 156)

The Chairperson noted that the key emerging risks on page 145 include managing external and internal risks and staff turnover. The annual staff turnover rates on page 168 reflected a total of 47 exits related to terminations and transfers. He wanted to know how these risks would be mitigated.

Mr Van Wyk noted food insecurity as another of the key emerging risks on page 145. It was a real risk and no longer an emerging risk. He asked if more sustainable projects could be considered to address the risk considering that the Department and Casidra both worked in this area. He noted that a large percentage of staff members were on sick leave and asked to what extent staff were being exposed to various health safety and environmental risks as outlined on page 149.

Ms Lekker asked for details of the investigation that led to the fraud case which was opened in April 2023 as noted on page 146. What process was followed?

Ms Nkondlo noted climate change as one of the key risks that was affecting the province. How was the province dealing with the matter which was elevated as a strategic priority of Cabinet? She asked about the Climate Change Resilience Strategy to address the flooding that impacts roads, human settlements, and infrastructure. These events had been repeating themselves every year. It would be summer soon when fires usually happened. People would need government disaster funding for materials to rebuild their homes that were destroyed by fires. The province and country needed a Climate Change Resilience Plan.

Minister Meyer agreed that food security was a real risk. The Casidra report also reflected on food insecurity. In South Africa, 11% of households was reported to be food insecure, which was a substantive figure. He replied to Ms Nkondlo that climate change was no longer limited to flooding, but it was causing people across the world to die. He agreed that there should be a government-wide approach. The province has an Inter-Ministerial Committee (IMC) on climate change. Four themes were discussed the past week in the MTEC meetings which involved all departments. Ministers had to respond to the four themes,  youth, infrastructure, climate change, and disaster risk management. Each department indicated its plans for mitigating climate change risks. He was also concerned about the fire season. He had observed the fires in the Mediterranean regions in the Northern Hemisphere, and saw that it was a major risk. Western Cape Provincial Minister of Local Government, Environmental Affairs and Development Planning, Mr Anton Bredell, would soon be making an announcement about fire season readiness. During the MTEC meetings, the Department of Local Government made a request for further investment for disaster and risk management fundings, which he supported. The President signed the Climate Change Bill into law. The Act stipulates the obligations for the different spheres of government which he had unpacked together with Minister Bredell. A governance framework was subsequently developed to deal with some of the provisions of the Climate Change Act. Climate Change should not be approached in a generic context. The Western Cape is a Mediterranean region therefore lessons from similar regions must be taken into account. The Western Cape Government is part of the Global Network of the Mediterranean Action Plan. He was satisfied that the matter would be receiving greater attention in the future. He recently met with the Minister of Fisheries and the Environment, Dr Dion George, who also made climate change a specific ministerial responsibility. He will soon be meeting with the GNU Ministers to discuss closer cooperation on the matter. Provisions for earmarked allocations were made in the previous term, specifically concerning sustainable resource use management. Colleagues have confirmed that floods did not occur where protection work was done. Sustainable resource use management needed to be strengthened to protect rivers and other infrastructure because the investment proved to have saved millions downstream. The key risks should not be underestimated. High levels of unemployment lead to high levels of food insecurity. The Western Cape government is committed to take care of its people through sustainable projects. Food security and nutrition was one of the Minister’s key priorities for this new term of office.

Dr Ilse Trautmann, Deputy Director-General: Research and Regulatory Services, said the Minister had explained the climate change governance structure. It was important to build partnerships with commodity organisations that have been doing sterling work in their particular commodities. Two significant agreements were signed last year. The agreement with Stellenbosch University School for Climate Studies was signed in November 2023 to create the ability to grow postgraduate student capacity in climate change. In December 2023, the Mediterranean Climate Action Partnership (MCAP) was signed. South Africa was viewed as one of the pioneers in this partnership. Fifteen regions with Mediterranean climates have been working together in three focus areas, extreme heat, fires and drought. The Department was honoured to have one of its officials elected as chairperson of the Drought Committee. The challenge was to balance between proactive and reactive disaster management. The government-wide approach was important. The Department was building on past experience. The Western Cape Climate Change Strategy was developed in 2007 and has been updated through several iterations. The latest update was done in 2023. The Smart Agri-plan that was developed between 2014 to 2016 was being strengthened. She announced that the Western Cape had won the bid to host the MCAP in May 2025 in Cape Town. All the experts from the 15 regions would be gathering in the Western Cape to advance learning and capacity building in climate change.

Ms Lindie Govender, Chief Financial Officer, said the fraud case related to a previous financial year concerning allegations of nepotism. It was suspected that the questions might have been shared before the interviews. The matter was reported to Internal Control, which investigated the matter and referred it to the Provincial Forensic Services. The allegation was found to be unsubstantiated and closed in the current financial year.

Mr Paul Rockman, Chief Director: Operational Support Services, replied to the Chairperson about the 47 exits. The 5.5% turnover rate out of a staff complement of 858 is the lowest rate amongst government departments in the Western Cape. The industry rate was about 16%. He argued that the Department was managing to retain staff as long as possible. He drew attention to the age profile of staff who had resigned on page 170. Most resignations were between the ages of 25 to 49. The data showed that people of a particular age do not leave once they have been in the Department for a period of time. 24% of the staff was in the 55 and above age group. This was identified as a risk which was being managed by creating a pipeline and opportunities for younger staff members. The Next Generation Build Programme was established to develop staff and to remain an attractive employer for young professionals. He was not concerned that the number of people on sick leave was high and considered it within the norm which is eight officials per year. He drew attention to sick leave with medical certification totalling 85%. This was an indication of a measure of validity for sick leave.

The Chairperson accepted the response about the 5.5% turnover rate but said it was identified as a key risk by the Department. Without the background information, the issue might appear confusing to the public.

Minister Meyer said the Chairperson raised a valid point. The previous week, the HOD and the Minister met with the Premier, who asked about the key risks as part of the performance assessment. During the meeting, the HOD highlighted the risk of many people retiring which was impacting institutional knowledge exiting the system. It was important for the Committee to discuss the matter and to manage the risk. He was similarly concerned about the Department of Cultural Affairs and Sport. The long-service awards showed that many people have been working for up to 40 years and leave a knowledge gap when they exit the system.

Ms Nkondlo said President Mandela advocated for a people-centred approach. Government should involve people in their decision-making to make it easier for them to respond when a disaster happens. She advised the Department to consider a people-led approach in food security and disaster programmes. People who are empowered would know what to do instead of depending on government as the first point of call. She asked the extent to which the programmes of the Department involved communities to make the people disaster conscious.

Minister Meyer replied that the Department held dialogues with the youth on climate change and the third dialogue would be taking place in the coming week. In his previous role as MEC for Social Development, he went to Germany to study the issue of substance abuse with experts in schools. He was told that engagement should start at kindergarten level. He asked if government should not start educating children on climate change at early childhood development (ECD) level. The images of floods in townships normally depict mothers fleeing for safety with their children. He advocated for creches and ECDs to sensitise children at an early age and for farmers to appoint climate change managers on farms. Individuals should also take responsibility for managing climate change in their homes because it has become a permanent occurrence. He commended Ms Nkondlo for raising the matter and thanked Dr Trautmann and her team for their work with the youth who are at the forefront on climate change thinking.

Part E: PMFA Compliance Report (pages 199 to 210)

The Chairperson asked for explanations for the ‘Fruitless and Wasteful’ expenditure on page 202 as it related to the non-attendance of official events and the cancellation of accommodation.

Ms Lekker referred to the note on page 201 relating to a verbal warning issued to an employee because of irregular expenditure. She asked if detail of the incident that led to the verbal warning could be shared. She linked this case to the code of conduct in Part C and asked if there had been interactions regarding the non-compliance with Provincial Treasury instructions.

Ms Nkondlo asked about the circumstances for the extension of the NAMPO Cape bid application for the Bredasdorp Expo on page 207 and for the supply of perishable and non-perishable products on page 208.

The Chairperson asked for an explanation of the ‘Material Impairment’ on page 212.

Ms Govender (CFO) said the reconciling note on page 202 is a breakdown of the R10 000 ‘Fruitless and Wasteful Expenditure’. The amount comprises seven cases, six related to the non-attendance of events and one of accommodation cancellation fees. The cases referred to in paragraph (b) on page 202 were still under investigation and related to the abovementioned seven cases. The verbal warning related to an official who did not make use of the lowest airfare when travelling for official purposes. The verbal warning was found to be the appropriate sanction. The code of conduct is shared with staff twice a year. Staff are made aware of standard operating procedures through the correct communication channels and which are aligned to Provincial Treasury instructions and regulations.

Dr Dirk Troskie, Director: Business Planning and Strategy, said the Department is only allowed to do business with NAMPO Cape in Bredasdorp Park because there are no service providers at that venue. Additional ideas came to the fore after the initial planning of the exhibition and youth events. Instead of a second bid, the existing bid was extended.

Ms Govender (CFO) explained that the catering contract for the supply of perishable and non-perishable products for the college students was for a two-year period with an option of extension for another year. The Department was satisfied with the services rendered and decided to extend the contract.

Part F: Financial Information (pages 212 to 297)

Mr Van Wyk said in a discussion with AGSA, the setting of predetermined objectives was debated. He argued that it needed to be relevant, realistic and achievable but should leave room for extending oneself. A number of predetermined objectives related to veterinary services and laboratories were closed for renovations. He noted a theme across the departments of sometimes setting unachievable objectives.

Ms Nkondlo observed the classification of programmes in the budget. She was concerned about the size of the budget for ‘Disaster Risk Reduction’ under Programme 2 on page 224. When a matter is elevated, it must be accompanied with funding. ‘Food Security’ was listed as a subprogramme with a limited budget and ‘Rural Development’ was the least funded programme. She asked about the thinking behind the budget allocation.

Minister Meyer said Ms Nkondlo raised a very important issue about the funding priorities of government and conditional grants. On 16 July 2024, the National Minister of Agriculture tabled his budget in Parliament. An assessment of the budget showed areas that the National Minister considered in need of greater support, like food security, disaster management, and rural development. He would be taking note if additional funding for these areas reflected in the budget when the National Minister of Finance tables his medium-term budget policy statement (MTBPS) for the next three years. The issues raised were topical and relevant for the national Minister.

Dr Sebopetsa (HOD) said the Department would need to properly map disaster risk reduction and if it was perhaps labelled as disaster risk management elsewhere in the Department. All funding to Casidra was for rural development. The work being done under Programme 4 was for disaster mitigation. The work with the Provincial Vet Laboratory was related to disaster management. The observation that food security was least funded needed to be understood in the context of global food security. The food security challenges in the Western Cape and in South Africa were about access and not a production issue. The conditional grant was mostly allocated for food production to ensure food supply in the system. The problem was that people did not have the means to access the available food. The Department had a role to play in creating jobs through community and farming projects to enable communities to access the available food in the system. The Department would map all the programmes where funding for disaster risk management, food security and rural development was allocated.

Ms Govender (CFO) explained that the ‘Material Impairment’ was calculated for debtors in terms of services rendered. It was not salary or staff-related debt and consisted mostly of student fees, and veterinary and lab services. In this case, most of the amount was related to student fees. R16.6 million of the amount was referred to Legal Services and the balance was being dealt with by the Department. Because of capacity challenges at Legal Services, the cases had been outstanding for a while, which resulted in the expiration of the debt. As such, a significant amount was written off. The option of private debt collectors was explored as a possible solution to speed up the process and to recover some of the funds.

Ms Lekker asked about the targets of Programme 4 on page 214. The target for veterinary testing was ten but zero was achieved. She asked if a contingency plan was in place in relation to this target.

Ms Nkondlo noted the increase in laboratory services on page 249 was due to services being contracted from private laboratories, resulting from temporary closure of the provincial laboratory. She asked why the expense had increased but the targets were not achieved. She asked for more detail about the reimbursement of R4.2 million to Wesgro on page 247.

The Chairperson noted on page 222 that the original budget for ‘Buildings and other Fixed Structures’ was increased. He asked why only 16% of the allocated budget was used. He asked for an explanation of the note on page 232 about the tender processes of two projects that could not be finalised by year-end due to technical difficulties.

Dr Trautmann said the laboratory was supposed to be upgraded. A specific timeframe was given for the maintenance and the upgrade. The planned target was accordingly reduced to the number of months left in the financial year. During the process, it was discovered that the deadline would not be met therefore the targets were not achieved. The upgrade was completed several months later. The budget was linked to the subprogramme and not the two targets. Although the laboratory was not operational, expenses still needed to be paid for new lab furniture, accreditation, and the IT and laboratory management information system licensing.

Ms Govender (CFO) explained that the Department annually transfers funds to Wesgro to manage the Agri-Desk on behalf of the Department. It was found that not all the funds had been spent in the previous years, hence the refund of the unspent money. Conditional grant funding was allocated for infrastructure upgrade at the college. The delay in finalising the business plan for the full project resulted in the 16% budget spent. The request for a rollover of the conditional grant funding to the new year was approved. The R2 million for the Vineyard Project was also related to infrastructure. The money could not be spent timely because there was only one non-compliant bidder.

Ms Nkondlo asked what had caused the delay in the laboratory upgrade, whether the delays were not anticipated, and what had happened to the tests that were supposed to be conducted.

Dr Trautmann said the building was 51 years old. Major problems with the flooring were discovered as the laboratory was being upgraded. The delay was not due to negligence. She explained that the testing could not be done in the laboratory therefore it is indicated that the targets were not met. But the tests were done through private laboratories through a proper procurement process.

Ms Lekker wanted to know why ‘Voted Funds’ under current liabilities on page 235 was surrendered to the Revenue Fund instead of being rolled over. What factors led to the decision? She requested the Department to provide detail of local and foreign travel, including the purposes of the trips, to substantiate the expenses under ‘Travel and Subsistence’ on page 251.

The Chairperson asked for an explanation for the impairment of ‘Accrued Departmental Revenue’ on page 263.

Ms Govender (CFO) said in terms of the process, ‘Voted Funds’ not spent must be returned to Provincial Treasury at the end of the year, but a rollover request was submitted. She would provide the travelling expenses detail requested by Ms Lekker. The impairment was for the same amount which AGSA had highlighted.

Concluding Remarks
Minister Meyer thanked the Chairperson for chairing the meeting in a professional manner and for the approach in making resolutions for the unanswered questions. He thanked Members for the depth of their questions and the officials for the excellent job. He congratulated the Department for the clean audit. It was his job to take up the resolutions of the Committee with the accounting officers. He thanked the External Audit Committee and AGSA for their presence. He announced that this would be his last time meeting with Ms Marietjie van Jaarsveld in the capacity of the Department of Agriculture. He thanked her for the long-term professional relationship and wished her a happy retirement.

Dr Sebopetsa (HOD) thanked the Committee for their work and for guiding the Department.

The Chairperson asked Ms Lekker to thank the Department on behalf of the Committee.

Ms Lekker thanked the officials for their hard work, especially in dealing with climate change. If the mission of the Department is to deal with poverty alleviation, then she would want to see it happening in real terms because people have lived experiences of not having access to food. Unemployment had also been hitting people hard. The Committee was expecting the Department to deliver. She viewed the Minister as playful, but he had provided good guidance for the Department and should be sharing his experience with his colleagues in other departments. The good work of the Department did not go unnoticed.

The Chairperson excused the Minister and the Department from the meeting.

Committee Resolutions
Committee Procedural Officer, Mr Dustin Davids, noted the following resolutions for follow up:

Committee to discuss the impact on service delivery of targets not achieved with the Department and AGSA;

The Department to provide a report on contract expansion;

The Department to provide a report on Irregular Expenditure and Fruitless and Wasteful that were condoned;

Casidra to provide detail of received, paid and outstanding invoices;

The Department to provide detail about the disciplinary hearings related to Irregular Expenditure;

The Department to provide a document, mapping all the programmes where funding for disaster risk management, food security and rural development was allocated; and

The Department to provide detail of domestic and international travel to substantiate travel expenses.

The meeting was adjourned.