Budget hearings: Departments of Transport & Health
Budget Committee on Appropriation
06 March 2007
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
JOINT BUDGET COMMITTEE
06 March 2007
BUDGET HEARINGS: DEPARTMENTS OF TRANSPORT & HEALTH
Co-Chairpersons: Ms L Mabe (ANC) and Mr B Mkhalipi (ANC)[Mpumalanga]
Documents handed out:
Department of
Transport Presentation
Department of Health
Presentation
SUMMARY
The Committee met with the Departments of Health and Transport in order to
discuss the progress made since their last meeting. The Department of Transport
stated that the new budget reflected government’s dedication towards improving
public transport, and that a significant portion of its budget was going to the
South African Rail Commuter Cooperation in order to build a sustainable rail
infrastructure in the country. It outlined the learnerships
and scholarships. Questions by members related to how
learners could be included in the bursary schemes, the infrastructure for 2010,
service delivery and expenditure, the rural infrastructure backlog, how the
students wee absorbed after training. Further questions related to monitoring
of funds through agencies, outreach programmes to increase awareness of the usage of
rail, national road maintenance, the
reasons why there was a R3 million roll over, and the poor state of roads in
the Eastern Cape. The Department was asked provide a plan of transfers in writing,
together with a report on their assessment on quality of roads after
construction. Other questions addressed the plans to
alleviate the congestion in Cape Town, adherence to standards by the provinces
and municipalities, the progress of the non-motorised
transport programme, and programmes
to alleviate the backlog of licensing centres.
The Department of Health focused on hospital revitalisation,
HIV/AIDS, and the skills development initiatives undertaken by the Department.
The Department had achieved an expenditure rate of 86.3% in revitalisation
and witnessed an increase in compliance reporting. Challenges related to
shortage of funding through a number of projects, and the roll overs on unspent funds being approved too late in the year.
Although it was trying to improve skills development initiatives there was
still the challenge of attracting and retaining staff, that
would not be addressed without further funding. Members questioned the
Department of Health on why business plans had been submitted without any
allocation of funds, and on the progress that has been regarding the monitoring
and evaluation of conditional grants. The Department was also questioned on
their expenditure on the hospital revitalisation programme, and on their recruitment strategy. Other
questions related to training of military staff, the effectiveness of its human
resources strategy, the community health workers' programmes,
the progress of the monitoring and evaluation of conditional grants, the
completion of four hospitals, value for
money in goods and services, and whether nursing colleges were due to reopen.
MINUTES
Department of Transport (DOT) Briefing
Hon Jeff Radebe, Minister of Health begun by
stating that he was fairly satisfied with the budget that had been allocated to
the Department. The new budget reflected government’s dedication towards
improving public transport, and the aim of the presentation was to focus on
Departmental growth with regards to the budget.
Mr Jerry Makukwane, Deputy
Director General, DOT focused on infrastructure allocation, SARCC, 2010
infrastructure development and issues surrounding skills development. He said
that in terms of skills development the expanded public works programme (EPWP) remained key focus area in the Department,
in that it provided employment to the lower skilled through labour
intensive methods. Learnerships and scholarships had
also been made available to students at various institutions, in order for the
Department to address the shortage of scarce skills such as engineering and
transport economics. The Department was also investing a significant portion of
its budget to the Rail and Commuter Corporation (SARCC) in order to build a
sustainable rail infrastructure in the country, and an increased investment on
rail infrastructure meant that the Department was able to respond to a large
number of commuters who were in need of transportation.
Discussion
Ms L Fubbs (ANC) asked the Department to
comment to the relationship between the volatility of commodity prices and the
acquisition of infrastructure. In terms of skills development, she asked the
Department to provide clarity on whether there were ways in which all learners
could be incorporated into the bursaries scheme, even if they were not part of the
correct institution. With regard to service delivery, she noted that the
delivery by local governments continuously failed to match the implementation
plans of national government.
Mr Dan Pretorius, Chief
Financial Officer, DOT replied that in terms of the relationship between the
prices and infrastructure, the Department had continuously been implementing
and improving logistical systems in order to facilitate economic growth, while
at the same time reducing costs.
Mr Saki Macozama,
Chief Director, DOT said that learnerships of R10
million were usually exhausted every year, and that the allocations made in
order to develop students were already fully utilised.
Mr J Schneeman (ANC) raised
the issue of 2010 infrastructure allocation and asked the Department to comment
on whether it believed that the funds would create a lasting legacy, and
whether there were systems in place to monitor the funds. The Department was
also asked to state whether it had a close working relationship with other
departments, and whether it believed there was enough capacity to ensure
effective utilisation of funds.
Minister Radebe responded that the Department had
implemented a broad public transport plan that had been broadly approved by
government. The first phase of the plan had been approved for 2010
preparations, and the year 2010 was regarded by the Department as an anchor in
the improvement and the creation of a lasting public transport and road
infrastructure network. The Department had also implemented effective
monitoring systems in place, which would ensure the effective utilization of
funds. With regards to interdepartmental co-ordination, the Department had
developed close co-operation and working relationships with other departments,
and was currently working on various projects with national and provincial
departments.
Mr Macozama responded that
in terms of service delivery and expenditure, the Department had been able to
forge a working relationship with other spheres of government. He stated that
the Department had also been working closely with the provinces, since it was
the provinces that had a role to play in ensuring that municipalities
delivered.
Ms B Dambuza (ANC) questioned the Department on the
rural infrastructure backlog, and asked for clarity by the Department how far
it had progressed in ensuring acceleration of backlogs. She also asked the
Department to comment on the issues arising from the integrated development
plans (IDPs), and the rehabilitation and maintenance
of the national roads network in the Eastern Cape.
Mr Macozama responded that
in terms of addressing the rural infrastructure backlog, the Department
was working together with the Department
of Provincial and Local Government (DPLG), in order to fast track service
delivery across municipalities, and improve on the road infrastructure
management systems in the rural municipalities. In terms of the rehabilitation
and maintenance of road infrastructure, the Department currently planned to
intervene and improve the N2 in the Eastern Cape, in order to create a better
and efficient port linkage between Durban and East London.
Ms L Chikuga (ANC) asked the Department to comment on
impact of funding of learners, and asked whether the funding was sufficient for
the expected output.
Mr Macozoma replied that the
programme lasted three years and the output would
only be visible in the later years. The Department also employed some of the
learners who had completed the programme, and the
funding only covered areas where there were scarce skills.
Ms Mabe asked the Department to provide clarity on
the students who were absorbed by the private sector, and also whether they
received the necessary support from provinces. In terms of the local production
of output, the Department was asked to elaborate on the response from the
private sector. With regard to the monitoring of funds through agencies, the
Department should provide further details on the systems in place.
Mr Makukwane stated that
the Department had introduced performance management contracts with each of the
agencies, which were being monitored through the Public Entity Oversight programme. In terms of absorption of students into the
private sector, the Department had established a committee that targeted and
recruited students to acquire specific scarce skills. However the Department
still needed to find the best way to keep track of how many students had been
absorbed into the private sector.
Ms R Mashigo (ANC) asked about the level of
independence of the South African National Roads Association (SANRAL). She
asked the Department to provide clarity on whether it was involved in any
outreach programmes that made the communities aware
about the usage of rail.
Minister Radebe responded SANRAL was an organisation
in which government was the major shareholder, and thus it had the power to
appoint the Board and the Chief Executive Officer (CEO). In terms of the
outreach programmes, the Department worked very
closely with commuter organisations in creating
awareness of rail transportation.
Ms Chikuga asked for further clarity on national road
maintenance, and stated that the maintenance of the road between Johannesburg
and Durban was inconsistent. She also said that she appreciated the fact that
there was capacity building within the Department; however there were still
major challenges in realigning the capacity and service delivery.
Mr Macozama replied that
the Department had implemented a framework policy that was meant to
specifically focus on the national roads. The Department's first priority was
to maintain the existing roads that were sustainable, in order to prevent
deterioration. The road between Johannesburg to Durban was managed by various
authorities. Currently the Department was planning on making emergency
improvements on certain parts of the road, and other parts were going to be
transferred to SANRAL.
Mr Robertson (ANC) [Eastern Cape] asked for clarity
on who was tasked with the maintenance of the railway line between East London
and Umtata and also sought clarity how often the
department would meet with the various other stakeholders to address issues.
Mr Robertson then asked the Department to provide
reasons why there was a R3 million roll over, and stated that the toll roads in
the Eastern Cape were just a few examples of wasteful expenditure.
Mr Pretorious replied that
the over spend was a result of the Department's assistance in the development
in the learning centres.
Mr Macozama said that
further information would be needed in order to asses the toll situation in the
Eastern Cape
Ms Mabe requested the Department to provide a plan of
transfers in writing, together with a report on their assessment on quality of
roads after construction.
Mr P Rabie (DA) enquired
about the plans to alleviate the congestion of roads in Cape Town. He also
asked the Department to elaborate on whether it planned on having another
high-speed railway network other than the Gautrain.
Mr Macozama responded that
in order to alleviate congestion, the Department was investing in improving the
rail networks, and was thinking of starting to charge single motorists using
private cars.
Mr Mkhalipi questioned the
Department whether it was satisfied with the provinces and municipalities in
terms of their adherence to the national norms and standards. The Department
was asked to comment on the progress of the non-motorised
transport programme, and also to indicate whether there was a support programme in place, that would help alleviate the backlogs
and overcrowded of licensing centres.
Mr Macozoma responded that the
Department needed to amplify the scale of non-motorised
transport, in order to make people aware of the importance of non-motorized
transport. The Department also planned to provide infrastructure support and
development in the improvement non-motorised
transport.
Mr Makukwane said that the
Department had introduced a booking system in Gauteng,
and so far it had been efficient in eliminating fraud and corruption. The
Department acknowledged the fact that the Municipalities were not able to cope
with demand arising from licenses, and was planning on forming a working
relationship with the post office for processing the renewal of licenses.
Department of Health (DOH)
Briefing
Mr Thami Mseleku, Director General, DOH focused on hospital revitalisation, HIV/AIDS, and the skills development
initiatives undertaken by the Department. He stated that in terms of hospital revitalisation, the Department had achieved an expenditure
rate of 86.3% at the end of January, and witnessed an increase in compliance
reporting. Some of the challenges faced included that the fact funds allocated
to revitalisation were only sufficient
enough to spend on projects where tenders had already been awarded. Detailed
breakdowns by province were given on the spending. Other challenges included
very few funds available for planning, and the rollovers of unspent funds by
the provinces being approved too late in the year.
In terms of HIV/AIDS it was noted that this incorporated a number of programmes. The Department had experienced an increase in
the number of accredited facilities and trained staff, but the budgetary
constraints were still such that the Department would not be able to reach its
targets. The number of patients receiving treatment in each province was
tabled.
The Department was also improving on its skills development initiatives,
focusing on the internal department issues It was
continuously providing internship programmes,
mentorship, coaching to students and community health workers. The budget for
the following year had increased to just over R5 million. Details of the
bursary and internship programmes were set out.
External mentorship and coaching initiatives were also being planned. The
Department was engaging with other internal and external institutions in regard
to the training. He detailed the training programmes
and set out the emergency medical services, the clinical associates programme and the community health workers programmes.
Discussion
Mr Schneeman asked the
Department to provide reasons behind the increase in expenditure, and asked
whether the Department felt that there was sufficient capacity to address the
various challenges faced.
Mr Mseleku responded that
the Department had focused on improving expenditure over a period of time.
There had been a number of measures that had taken place to facilitate the
improvement, and the Department had been able to assist provinces in developing
business plans, and has dedicated staff looking at the conditional grants and
infrastructure programmes.
Ms Fubbs asked the Department to explain what the
major cost drivers were. The Department should also provide reasons on whether
the Defence Force had special dispensation to attend
to military personnel.
Mr Mseleku replied that the
major cost drivers included the automatic HIV treatment of patients, and the
hospital revitalization. In terms of the defense personnel, the staff were
provided with similar training to civilian staff, however they also received an
advanced certificate.
Ms Mashigo asked the Department to provide reasons
why business plans had been submitted without any allocation of funds, and also
asked it to provide clarity on the funding for non-governmental organisations (NGOs).
Mr Mseleku responded that
the business plans issue was a great misunderstanding. The business plans that
were submitted were in fact plans submitted for hospital revitalisation
future projects, which was why there was lack of funds. In terms of the funding
of NGOs, the Department had an allocated budget dedicated to funding NGOs. In
order to qualify for allocation the NGO had to exist in more than two
provinces.
Ms Mabe felt strongly stated that by submitting
future business plans, the Department was creating a false impression, in that
they were promising to the public something that had not yet been guaranteed.
Ms B Dambuza (ANC) asked the Department to comment on
the effectiveness of its human resources strategy, the Community health workers
programmes, and the time frames of certain programmes.
Mr Mseleku responded that in
order for the Department to effectively address the lack of human resources,
health professionals needed to be paid better, and professions such as nursing
needs to be prioritised. The Department had made
agreements with other African states that they would not recruit from one
another in a way that would hinder their recourses and so it would have to import professionals from
outside the continent. It was important to note that provinces ran the
community health workers programmes,
and that the national department’s job was to ensure that the norms and
standards were followed.
Ms Dambuza asked the Department to state the progress
regarding the monitoring and evaluation of conditional
grants, the completion of the four hospitals mentioned in the last quarter, and
also comment on how reliable the information was.
Mr Mseleku stated that the
Department had dedicated staff looking at conditional grants but that there
needed to be a change of budgeting format for infrastructure. In terms of the
verification of information, the Department stood by the information presented,
and were continuously building capacity within the Department with regard to
the monitoring and verification of information.
Mr G Steyn, Chief Director,
Hospital Revitalisation, DOH added that two of the
four hospitals had been completed. The hospital in George was still at a
planning stage; but it was important to note that the planning was only for
minor refurbishment that needed to be made at the hospital.
Ms Chikuga noted that the Department had spent most
of its allocated funds on goods and services, and asked whether the Department
received value for money in goods and services. In terms of monitoring and
evaluation, there seemed to be a lack of accountability with respect to the
individuals that performed the monitoring. She also asked the Department to
state on whether the antiretroviral (ARV) centres had
been informed about the fact that their budget did not allow them to take in
any more patients.
Mr Mseleku replied that the
goods and services provided to the Department were of a high quality and
standard. In terms of the monitoring and evaluation the Department had been
heavily impacted upon by the brain drain, and the problem would continue to
persist throughout the year, unless something drastic was done. With regard to
the ARV Centres, the Department had procedures in
place for taking people on, and it was important to note that the Department
did not supply ARVs to people without verification.
Miss Chikuga asked the Department to state how many
closed nursing schools were being reopened during the financial year.
Mr Mseleku replied that
many collages had been reopened whilst others have been incorporated into
universities. The main challenge was in acquiring the necessary staff and
educators at the collages.
Ms Mabe said that there were still problems with the
transfer payments to provinces, and asked the Department to comment on their
progress.
Mr Mseleku responded that
the bulk of the Department's budget went to transfer payments, and that the
main budget came from the conditional grants.
The meeting was adjourned.
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