Agriculture Provincial Conditional Grants & CapEx: 2nd Quarter 2006/07 spending
NCOP Finance
27 November 2006
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
FINANCE SELECT COMMITTEE
27 NOVEMBER 2006
AGRICULTURE CONDITIONAL GRANTS: SECOND QUARTER
SPENDING 2006: BRIEFINGS BY PROVINCIAL DEPARTMENTS
Chairperson: Mr T S Ralane (ANC, Free State)
Documents handed out:
Eastern Cape
Conditional Grant Mid term Performance Review presentation
Eastern Cape CASP
report
Free State Second Quarter Conditional Grant and Capital Expenditure Report for
2006/07 presentation: Part1 & Part2
Limpopo Province Conditional Grant Expenditure: Second Quarter presentation: Part1 & Part2
Northern Cape Presentation on Conditional Grants and Capital Expenditure:
Second Quarter: Part1 & Part2
Western Cape
Department of Agriculture: PowerPoint presentation
Mpumalanga: Six
Months Capital Projects Report
Mpumalanga
Presentation on Conditional
Grants and Capital Expenditure 2006-2007
North West
Presentation on Conditional Grants and Capital Expenditure: Second Quarter
Relevant Documents:
Division of
Revenue Act Number 2 of 2006
National Treasury’s 2002/2003-2008/09 Provincial Budgets and Expenditure Review
SUMMARY
The Committee was briefed by the provincial departments of agriculture
regarding the second quarter expenditure of Provincial Infrastructure Grants
(PIG), Comprehensive Agricultural Support Programme (CASP) as well as the Land
care grant.
Provinces raised key challenges in the ability to spend as well as the quality of
spending grants. These were; the time consuming nature of smaller projects, the
inability of departments to attract and retain specialized skills as well as
The committee noted that the size of conditional grants was greater than the
equitable share of provinces. This was a cause of concerns as it impacted on
the ability of departments to delivery services adequately. Provincial
departments needed to ensure that Provincial Treasuries managed the allocation
of provincial grants in accordance with the requirements of the Division of
Revenue Act (DORA).
North West Department of Agriculture presentation
Mr Mayisela (MEC: North West Department of Agriculture) thanked the
committee for assisting the Department to manage challenges raised in past
submissions. The Department had begun to explore the turn-around strategies
suggested by the Committee.
The Department had spent 34 percent of the total allocations of the Conditional
Grants as well as 11.6 percent expenditure on its equitable share, by 30
September 2006. Although the implementation obstacles had been dealt with, the
late approval of roll-overs by the National Treasury had a negative impact on
the rate of spending. Delays in the transfer of conditional grants by the
National Department had negatively affected the province’s commitment of funds
to projects. Tenders had been awarded in November and the Department had committed
R20.2 million; R11.1 million; and R9.1 million to mechainization support; the
construction of fencing and training respectively.
The following challenges to further expenditure were highlighted. A shortage of
skills such as project managers, economists and engineers hampered the
development of infrastructure. The monitoring of progress was hampered by the
lack of sufficient capacity. The need for further training in supply chain
management was also highlighted.
Certain remedial actions had been taken that included the implementation of
Bulk Procurement Systems as from May 2006; the outsourcing of project
management. Increased institutional capacity for bigger land reform groups and
beneficiaries was being investigated.
Discussion
The Chairperson commented that the monetary value of the conditional
grants (R93 million) were greater than its allocated equitable share (R50
million). This was a worrying trend as the success of the Provincial Growth and
Development Strategies (PGDS) as well as the implementation of the Integrated
Food Security and Nutrition Programme (IFSNP) depended on the availability of
funds. He added that the 2002/03-2008/09 Provincial Budget and Expenditure
Review cited the Department of Agriculture as the lead department in the implementation
of IFSNP. The conditional grant was supplementary to existing budgets and given
this imbalance, the battle for food security could not be effectively waged.
How would the NWDA locate the achievement of food security in the PGDS? This
was important as food security was linked to the growth of the provincial
economy. This was a clear disjuncture that needed to be addressed speedily.
The Chairperson remarked that the National Treasury’s 2002/03-2008/09
Provincial Budget and Expenditure Review was a very useful document. All MECs
and Heads of Departments (HODs) needed to be familiar with the information it
contained. He requested the committee secretary to provide the provincial
representatives with copies. This document reflected a growth of budget for the
provincial departments of agriculture in terms of the growth in the size of
conditional grants. The Committee could not consider this as sufficient
evidence the growth in provincial buddgets.
Mr E Sogoni (ANC, Gauteng) thanked the MEC for the presentations. He
expressed concern over the absence of a representative of the National
Department of Agriculture and Land Affairs. This was important, especially in
the light of the presentation made by the NWDA. Although a Head of Department
had already been appointed, certain challenges were still being experienced.
Although officials were concerned about outputs, members of parliament were
concerned with the outcomes of activities. Could the NWDA clarify the extent to
which the scarcity of skills was managed? During a study tour of the North
West, many emerging farmers had raised the need for technical support. Although
the MEC had informed the committee that the department would spend the funding
by the end of the financial year, the quality of spending needed to be
addressed. What was hampering the lending of support to emerging farmers?
Mr Mayisela answered that peripheral provinces faced shortages of staff due to
the unwillingness of skilled people to relocate. Departments of agriculture
were historically male dominated structures, and the NWDA decided to appoint
female candidates to scarce skills and senior management positions. Although
suitable candidates were found, individuals were not willing to relocate.
Moreover, the rural nature of certain provinces made it difficult to attract
suitable skills. Incentives were thus necessary to attract and retain the
necessary skilled people. This was a matter that was of great concerns for
MinMec.
Mr Mayisela continued that the Northwest provinces included three diverse
groups of people from what used to be Boputatswana; Western Transvaal, and the
then PWV. The manner in which agriculture was historically supported also
entrenched particular cultures and tendencies amongst farmers. This cannot be
transformed in a short space of time. The Department was working very hard to
ensure that all farmers could be provided with the necessary assistance. Many
of emerging farmers work with the Landbank. The MEC had to have discussions
with the provincial managers of this bank following the complaints raised by
many farmers over the intention to repossess farms. Although the provincial
departments provided grants top emerging farmers, these farmers needed to
service debts from the Landbank. Therefore, although this grants was awarded it
could not provide the necessary support to farmers. This was problematic. The
department had established a forum where stakeholders such as the Landbank;
farmer unions, land affairs officials as well as commercial institutions (Absa,
FNB) to develop ways to provide sustainable support to emerging farmers
Mr Kolweni noted that the North West had not supplied the amount transferred to
this Department by the national department. This made it difficult to
established whether the expenditure was of the budget or the total available
funds
Limpopo Department of Agriculture (LDA): presentation
The Chairperson commented that the DLA’s presentation would be used as a
guide when visiting the province, as the information contained focused on a
political oversight of activities in the department. He requested the
Department to focus its presentation on second quarter expenditure on
conditional grants as well as the variances in expenditure between the
Comprehensive Agricultural Support Programme (CASP); Landcare and Rural
Development in terms of the Provincial Infrastructure Grant (PIG).
Ms DP Magadzi (MEC: DLA) informed the Committee that up to 30 September
2006, the department had spent 27.6 percent, 23.3 percent and 53.6 percent of
the CASP, PIG and Landcare grants respectively. The total expenditure on these
grants amounted to 27.7 percent. This showed an improvement to the expenditure
during the same period of the previous financial year.
Regarding CASP, certain challenges had been experienced in the planning of
activities that had an impact on the monitoring of monthly performance of all
projects. There had thus been less activities recorded in the second quarter.
Other key challenges included low staff morale as well as the number of small
projects that consumed the same turnaround time as big projects. There had been
a delay in the in the environmentally controlled poultry house due to the
contractor’s withdrawal from the first phase of the bidding process. However,
the signing of service level agreements had been completed. A new service
provider had been contracted and the total financial commitment was R21
million. DLA would henceforth strictly adhere to the use of Project cards,
Activity planning and cash flow projections.
Expenditure on the Landcare grant had been affected by the inability of service
providers to submit and complete Master Plans that would enable the completion
of final designs for the requisition of orders and implementation. Community
involvement in the management of natural resources in communities was critical,
but was currently lacking. There was Inefficient monitoring of the impact of
projects on the environment and communities.
DLA had spent had merely spent 10 percent of the PIG. In terms of Rural Development,
the DLA was awaiting the seller’s acceptance of R7 million Polokwane purchase
offer, of this quarter. The equipment would be purchased after the signing of
the deed during this quarter. The development of the Tubatse fresh produce
packhouse had been delayed due to a land tenure arrangement with the DoLA.
Discussion
The Chairperson commented that the presentation provided clear
information about the inputs of the Department. This political audit would be
useful when the Committee conducted study tours.
Mr Songoni said that the MEC of LAD had cited the poaching of staff by the
Gauteng province. The agriculture departments of the Western Cape and Gauteng
had spent more on the compensation than Limpopo. The department would loose
staff if employees felt that they were not properly remunerated. The Department
would then retain staff.
Ms Magadzi answered that systems to manage the remuneration of officials differed
from province to province. Provinces still struggle to standardize these
systems. Although the province envisaged to implement the use of this
standardized remuneration system by 1 April 2006, other provinces were not yet
ready. Additionally, other factors were also being investigated that would
improve and streamline the remuneration of provincial departments employees.
Mr Kolweni asked whether the Limpopo and North West Province had a database of
all the small projects. This would be very useful for members of parliament
when doing constituency work.
Mr Kolweni wanted to know whether the LDA had roll-over funds.
Ms Magadzi replied that LDA did not have any roll-overs.
Mr Kolweni expressed his satisfaction at the concerns raised by both LDA and
NWDA about the many small projects it had developed and managed. This had an
impact on the quality of the work performed by officials. A degree of
concentration was required for reconstruction and development.
Ms Magadzi answered that the difference and use of the conditional grants and
equitable share was a complex matter. Provinces had differing priorities, and
as a result the allocations would be spent on those areas that were considered
a priority. One of the priorities in the North West of the PGDP and endorsed at
the Executive Committee’s Budget Lokgotla, was the improvement of
infrastructure. These included the improvement of roads. Spending priorities
would shift from time to time. Social issues such as the provision of housing,
water and sanitation would at times over shadow the economic aspects.
Free State Department of Agriculture (FSDA): presentation
The Chairperson requested the FSDA to omit reporting in the expenditure as
per 28 November as well as the commitments, as this would only become relevant
when analysing third quarter expenditure.
Mr M C Mokitlane said that the FSDA was now in line with the requirements of
the Public Finance Management Act (PFMA) as a supply chain management structure
had been established. All projects for the current financial year were subject
to a bidding process.
The implementation of CASP projects had been delayed as some of the projects
had not been adequately prepared for implementation. Following discussions with
the national department of agriculture and land affairs, permission was granted
to focus attention on those projects that be immediately implemented. These
implemented projects included the irrigations scheme of the Oppermans
Restitution project (R6 750 million). Due to the scarcity of engineering
skills, this project was implemented with the assistance of the Agricultural
Research Council (ARC). The Department would be ready to implement the second
phase of this project, and this would cost R7.5 million. The tender process for
the postponed projects commence in January or February.
The services of the ARC would be utilized to assist in the provision of
engineering services as certain projects needed the appropriate skills. The
sustainability of projects was very critical and the Department would use the
roll-over funds to improve existing projects.
The capacity of the supply chain management unit had been improved. The
efficiency of this unit was critical to ensure that the average processing time
was reduced. Although the department had an implementing agent, this agency had
experienced certain challenges. The department was contemplating the establishment
of an agency that would be responsible for the implementation of projects.
Discussion
The Chairperson noted that some provincial agricultural department did
not receive a Provincial Infrastructure Grant (PIG). However, these grants were
supplementary funding, and department need not rely on these funding projects.
The Chairperson noted that the provincial treasuries were not complying with
the requirements of the Division of Revenue Act (DORA). Grants were
supplementary funding and should not be relied upon before expending existing
available funds. This reliance on conditional grants was problematic. Free
State was in full compliance with the law since this province did not receive a
PIG. Section 9(3a) of DORA stipulated that “ a province, in allocating a
Provincial Infrastructure Grant, must take into account the capacity
of the receiving provincial department to spend and manage infrastructure,
based on the extent of any approved roll-overs in the 2005/06 financial
year and any projected roll-overs in the 2006107 financial year.” It seemed as though such evaluations were not
performed when considering such allocations. MECs needed to engage provincial
treasuries about the stipulations of DORA. Section 9 (3b) stipulated that “a
province, in allocating a Provincial Infrastructure Grant, may, where a
receiving provincial department lacks capacity designate a percentage not
exceeding one percent of the allocation for acquiring such capacity.” When
considering the division of revenue for the 2007/2008 financial year important
issues such as scarce skills as well as the internal capacity of departments.
Would the one percent, as stipulated by the Act be enough to adequately
capacitate provincial departments? This could be another debate policy makers
and enforces could debate. Additional agencies did not have to be created as
the legislation regarding the capacity of departments was straight forward.
Provincial Departments had to revisit this and should report on the progress
made in this regard during the third quarter made regarding the assistance of
provincial treasuries to PDA. It should be ensured that the capacity of
departments was built.
Mr Sogoni said that the Free State was primarily an agricultural
province. However, the level of expenditure of the equitable share was less
than spending on the conditional grant. The department needed to prioritise
spending to ensure that people in the Free State benefit.
Mr Mokitlane answered that the provincial Treasury had provided R10 million to
improve the capacity of the department. It had developed a broad recruitment
drive and advertisement of vacancies could commence early next year. This would
be for additional technical positions. The department would not rely solely on
the expertise of the ARC.
Mr Sogoni commented that the presence of the national department in the
proceedings was critical as provinces had reported many roll-overs. Cleary
obstacles to effective spending were still apparent? What was the role of the transferring
department? Was this unit merely concerned with the transfer of funds? Did this
unit monitor spending?
The national department requested an investigation and report about the
responsibilities of extension workers. This needed redefinition of the
interface between the farmer and the extension officers. This would assist the
higher levels of productive farming.
Mr Sogoni commented that he visited two agricultural projects on a recent
committee tour of the Free State. The key problem that was raised was that
although there had been allocation in the 2005/2006 financial year, there had
been no roll-over to complete the project in the current financial year. There
was also no training provided by the Department. Additionally, it was noted
that the department did not lend financial cost to cover the costs of
production.
Mr Mokitlane answered that the Department had provided support at a very late
stage to those farmers that had been provided land in the 1994-1997. These
farmers had already been in too much debt. A provincial and national strategy
was needed to alleviate these debts. These coincided with the strategic imperative
to ensure that black South African to own land.
There was discussion about difficulties experienced with certain projects. It
was the responsibility of departments to develop remedial actions to address
these obstacles. The department would provide a progress report to the
committee. The department provided training to those individuals that had been
allocated funds to for specific projects. Certain agreements had been made with
white commercial farmers that ensured that training was provided to emerging
farmers. Production costs were included in the funding of farmers. Some of the
2005/2006 allocation to projects had not been spent due to the delays in these
projects
Mr Mokitlane answered that the provincial Treasury had provided R10 million to
improve the capacity of the department. It had developed a broad recruitment
drive and advertisement of vacancies could commence early next year. This would
be for additional technical positions. The department would not rely solely on
the expertise of the ARC.
The Department had provided support at a very late stage to those farmers that
had been provided land in the 1994-1997. These farmers had already been in too
much debt. A provincial and national strategy was needed to alleviate these
debts. These coincided with the strategic imperative to ensure that black South
African to own land.
There was discussion about difficulties experienced with certain projects. It
was the responsibility of departments to develop remedial actions to address
these obstacles. The department would provide a progress report to the
committee. The department provided training to those individuals that had been
allocated funds to for specific projects. Certain agreements had been made with
white commercial farmers that ensured that training was provided to emerging
farmers. Production costs were included in the funding of farmers. Some of the
2005/2006 allocation to projects had not been spent due to the delays in these
projects.
The national department requested an investigation and report about the
responsibilities of extension workers. This needed redefinition of the
interface between the farmer and the extension officers. This would assist the
higher levels of productive farming.
Mr Mokitlane responded that n agreement had been reached between the FSDA and
provincial treasury, which required the treasury to take provincial
infrastructure grant, since the department lacked sufficient capacity to spend
this money. The grant for this financial year had also been retained since the department
had not yet built this capacity. Presently, there were a number of vacancies
the department struggled to fill. These were technical positions that would
assist the department in its activities.
There was discussion about difficulties experienced with certain projects. It
was the responsibility of departments to develop remedial actions to address
these obstacles. The department would provide a progress report to the
committee. The department provided training to those individuals that had been allocated
funds to for specific projects. Certain agreements had been made with white
commercial farmers that ensured that training was provided to emerging farmers.
Production costs were included in the funding of farmers. Some of the 2005/2006
allocation to projects had not been spent due to the delays in these projects.
Western Cape Department of Agriculture (WCED): presentation
Mr J Dowry (MEC, WCDA) informed members that the R3 million provincial
infrastructure grant allocated would be added to the WCED’s equitable share. A
steady growth in the size of CASP could be reported and the total allocated
amount in 2006/2007 was R20 648 million. The department projected to spend R20
588 million for the implementation of 143 projects benefiting 5765 people (3459
women and children). Although merely R1.957 million of CASP had been spent in
the second quarter, the department would spend R13.932 million in the third
quarter. The reason for such low expenditure was the seasonality of agriculture
in the province as well as the impact of the rainy season on the completion of
infrastructure. Business plans were also completed in the second quarter. The
timeous completion of these plans was also a challenge.
Regarding PIG, the department expected to spend R5.560 million and that
overspend would be accommodated by the equitable share as NT had included most
of the infrastructure grant into the equitable share. These funds would be
utilized to implement 10 projects, beneficiaries of which were all emerging
Philippi market suppliers. Spending for the second quarter was at R4.585
million. The Department had transfer funds to the city of Cape Town, for the
building of a market in Philippi to support the livelihoods of emerging farmers
in this area.
Key challenges were also highlighted which included time constraints linked to
the availability of staff; serious cash flow problems and debts, as well as the
relocation of funds (R2.5 million) due to the selling of farms.The Department
had advertised 28 positions and appointments would be made in February 2007.
The Department had spent R1.470 million on drought relief. The purpose of this
project was to provide relief to livestock producers in declared drought
stricken areas by supplying limited fodder and transport.
Discussion
Mr Sogoni said that the WCDA hoped to spend R13.932 million of CASP by the end
of the third quarter. Why was there such a huge difference in the actual
spending in the second quarter and the projected spending in the third quarter?
How would the department increase this spending?
Mr Dowry answered that the department said that the rainy season influenced the
momentum of spending in the second quarter. Tenders were usually awarded in the
third quarter. R2.5 million had been reallocated and would be spent. The floods
in the Southern Cape had an adverse effect on the roll out of projects in this
region. Large tenders were finalized in September and these were being
implemented currently. The Department had spent R2 million on the Nelspoort
project in October and some funds had been committed in the second quarter but
would only be paid be spent in the third quarter. This included the funds
allocated to the farming equity scheme project.
Mr Sogoni wanted all provincial departments to clarify their understanding of
the objectives of the conditional grant. This was not a primary source of
funding but merely to supplement exiting budgets. From the information obtained
from presentations, it seemed that provinces were relying on this grant. What
could be done to reverse this situation? If national Treasury decided to
withhold such a grant, there would be no expenditure or development in these sectors.
Agriculture was a very important element in improving the lives of South
Africans.
The Chairperson said that through a special piloted project in Limpopo
province, Eastern Cape and Kwazulu/Natal and therefore this projected needed to
be extended to the provinces. Therefore an evaluation of the effectiveness of
this pilot needed to be evaluated before extending this project. The Committee
needed to follow –up on this project rather than deliberate its effectiveness
at the present meeting.
Mr Z Kolweni (ANC, North West) suggested that the Committee needed to develop a
uniform standard of reporting since the presentations should be focused on
concerns of the Committee.
Ms D Robinson (DA, Western Cape) requested more information regarding alien
clearing projects implemented in the Mamre, in the Western Cape. Certain
residents were very eager to get involved in organic farming.
Mr Dowry responded that the department had projects in the Mamre area. Fencing
and irrigation material had been supplied to this area already. Infrastructure
grant had been awarded of R2 million over the last two financial years that was
focused on the provision of adequate fencing, stock water and the clearing of
land for farming. An advisory office for the residents of Mamre had been opened
in Atlantis. Mechanization infrastructure centre would also be constructed to
serve the people of Mamre and Pella. R300 000 had been allocated too small
scale farmers in Darling. An additional two projects to the value of R350 000 in
Atlantis, and one project in Philadelphia had been launched worth R180 000. 33
hectares of land had been handed over to residents of the Leliefontein area,
near Atlantis. An agri-village had been developed in Piketberg which would
benefit 69 individuals.
Mr D Botha (ANC, Limpopo) commented that all provinces showed a commitment to
spend. However, the challenges to increased expenditure were clearly
highlighted. A political audit of the internal capacity of a department was
very crucial. Did provincial committee’s conduct oversight visits to projects?
Did they provide advise and feed back to provincial departments and MECs?
Mr Mayisela answered that the department had a good working relationship with
the provincial portfolio committee on agriculture. Regular interactions were
conducted. The chairperson of the portfolio committee was a farmer and
therefore his expertise and knowledge on farming and agricultural matters were
relied upon. NWDA had initiated a policy that enabled those individuals awarded
land, to lease the property to an exiting farmer or appointing a farmer as a
project manager. The expertise could thus be relied upon. These farmers in the
management of the farm could also train community members and new owners.
Mr Botha acknowledged province’s commitment to plan better in order to avoid
the roll-over of funds. Provinces needed to ensure that under spending and over
spending did not occur. Provinces should also avoid “fiscal dumping” the mere
spending of funds in the last month of the year to avoid the consequences of
under spending.
Mr Botha raised concerns regarding the low expenditure on the allocated funds
for disaster management. Could the provincial departments explain the reasons
for this? What were the challenges to greater spending?
Mr Botha commented that not all people know how to farm and commercial farmers
could be used as mentors to support emerging farmers in the management of
farms. There were too many small farming projects as these could not be
sustainable without the necessary long-term technical or financial support. He
added that in order to achieve food security large scale and commercial farms
needed to be developed.
The Chairperson acknowledged the efforts of provincial agriculture departments
to appoint heads of departments subsequent to the concerns raised at the
previous meeting with the provinces. These were, NWDA; FSDA. The stability of
these departments reflected in the presentations was linked to the appointments
of these accounting officers. The committee would work and evaluate very
closely the efforts of MECs and HOD’s to improve the planning and expenditure
systems within departments.
The
Chairperson commented that the issues of the correct procedure of the
allocation of PIG according to the requirements of the legislation needed to be
resolved. Important questions needed to be raised: to what extent supersede
political obligations the legislation, and to what extent match the spending
with the outcomes of that spending. For example had progress been made in the
improvement of provincial roads? Was there value for money to ensure that the
spending on additional infrastructure priorities was not compromised?
Northern
Cape Department of Education (NCDA): presentation:
Mr W
Mothibi (HOD) informed the Committee that the department had spent 58 percent,
46 percent and 36 percent of funds allocated to CASP, Land care, and PIG.
The under spending on PIG was due to the cancellation of some of the bids as
some had been expired and re-advertised. Moreover, the tender process sometimes
exceeded the quotation period of suppliers and that lead to delays in the
implementation of projects.
The Department would, following an audit of the projects; the department would
monitor expenditure and progress made on a monthly basis. A project
coordinating committee had been established and quarterly meetings would be
held to assess project proposals, as well as to assess and evaluate project
progress. The Department would ensure that 2006/2007 projects were implemented
according to plans and would not allow any roll-overs from 2006/2007.
The following challenges were highlighted in the expenditure of conditional
grants. Demands of by land reform beneficiaries were also a challenge. Credit
facilities of black economic empowerment contractors were problematic and
therefore delays in delivery of materials and other services.
Discussion
Mr Sogoni remarked that the NCDA appeared to be over spending on its
conditional grants. How did the department intended to deal with this matter?
Mr Mothibi answered that at the time of preparing the presentation, the
department was engaging with the provincial treasury about this possibility.
There had been rollovers, and although the department was spending their cash
allocations, the department was also spending the committed funds. Therefore,
the roll over funds would accommodate the overspending.
The Chairperson commented that the presentations have highlighted the
problematic exhaustion of the PIG while existing budgets were not yet spent.
Departments were already reporting over expenditure on these grants.
The Chairperson requested clarification on why tender processed exceeded the
quotation period of supply?
Mr Mothibi answered that that at the time of awarding these contracts, the
costs of projects had increased. Therefore, the tendering processes had to be
repeated.
Mpumalanga Department of Agriculture (MDA)
Mr Mathibula (Acting HOD) delivered the presentation to the Committee.
The Department had provided a synopsis of the monitoring mechanism for the
spending of conditional grants as this capacity not been adequate in the past.
Project implementers had been deployed to project sites, and provided a weekly
progress report on projects. This also strengthened interactions between
provincial and municipal spheres of government. The MEC also reviewed the
performance of these projects on a quarterly basis.
Certain challenges were also highlighted, amongst others the under spending on
conditional grants. The department had only spent R4 million of the allocated
CASP grant of R28 million. The Department had spent less that R1 million on the
R4 million land care grant. R5 million of the R28 million PIG grant had been
spent. These figures were the total spending on conditional grants in both the
second and third quarters of the current financial year.
The department had anticipated the under expenditure since the department reviewed
all the projects that it had implemented during the financial year to assess
whether these focused on food security, poverty alleviation, job creation and
the stimulation of economically viable agricultural activities in rural areas.
It was found that these projects were not generating agricultural activity.
Discussion
Mr Sogoni commented that the MDA had to provide a progress report on
the success of the revised monitoring system.
Mr B Mkhaliphi (ANC, Mpumalanga) reminded department that the committee
expected provincial departments to carry out their duties and responsibilities.
Mr Mathebule’s forthrightness about challenges faced by the MDA was
appreciated. The Committee would be observing the progress made to these
challenges very closely.
The Chairperson commented that the Committee needed to engage with the MEC as
well as the Executive Council of Mpumalanga about the scarcity of engineers in
province. The availability of one engineer currently was unacceptable.
Mr Sogoni requested that Departments should provide more concise presentations
in future that needed to focus on matters of expenditure.
Ms Robinson wondered whether the Committee provide a standard template for
presentations. It was very difficult to prepare questions as well as to study
documents if documentation was not received prior to the scheduled meeting.
The Chairperson had written a letter to those provincial departments that would
be make presentations in the third quarter that advised departments to submit
documentation ahead of scheduled meetings. Although department could be
requested to deliver documentation on time, members had to read and prepare
well for these meetings.
The Chairperson thanked the departments for the presentations.
The meeting was adjourned.
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