Minister of Water Affairs’ Address & Department of Water Affairs and Forestry Annual Report briefing

SELECT COMMITTEE ON LAND & ENVIRONMENTAL AFFAIRS AND PORTFOLIO COMMITTEE ON WATER AFFAIRS & FORESTRY.
09 October 2007
MINISTER OF WATER AFFAIRS’ ADDRESS & DEPARTMENT OF WATER AFFAIRS AND FORESTRY ANNUAL REPORT BRIEFING

Co Chairpersons:  Ms C September (ANC) and Rev P Moatshe (ANC, North West)

Documents handed out:
Accounting Officer’s Overview
Chief Financial Officer’s presentation
Corporate Services Administration presentation
Water Resource Management Programme
Water Services presentation
National Water Resource Infrastructure
Forestry Overview

Audio recording of meeting [Part 1] [Part 2]& [Part 3]

SUMMARY
The Minister of Water Affairs introduced the Department’s annual report to the Select Committee and Portfolio Committee on Water Affairs and Forestry, in a joint session. She noted that the Department had embarked on a comprehensive multi faceted strategy to address its challenges, and had shown achievements in areas of water and sanitation, showing increased water supply, eradication of buckets and emphasis on quality drinking water. The Department had also managed to establish partnerships.  The Department reported on the financial statements and tabled separate reports for Corporate Administration, water services, water resource management and forestry. Each division presented on their overall challenges and achievements. Lack of capacity, lack of funding and difficulty in dealing with local government were presented as continuing themes. The Department had clearly experienced difficulty in meeting the requirements of the financial statements but noted the recent appointment of a Chief and Deputy Financial Officers, who promised that the work would improve.

The Committee expressed disappointment about the technical quality of the Annual Report, and noted that in many instances programmes did not align with the strategic plan, or not all programmes were included. There was some disparity between what was being presented today and what was contained in the Report. Further concerns related to management of the asset register, particularly in respect of dams, and hiring and retention of engineers and other scarce skills. There was suggestion that the Department improve on their audit report so that they would be able to obtain an unqualified audit. Other concerns rose from the management of the asset register, retention of skills and training. It was noted that some further information would be forwarded to the Committee and that the Department was aiming to improve the standard of reporting and compliance with the Auditor General’s requirements. 

MINUTES
Department of Water Affairs and Forestry (DWAF) Annual Report Briefing
The Chairperson explained that the purpose of the joint meeting was to consider the Department of Water Affair’s Annual Report, particularly the financial and audit committee report.

Address by Minister of Water Affairs
The Hon Lindiwe Hendricks, Minister of Water Affairs, expressed her gratitude for the joint meeting. She noted that the targets set by the Department of Water Affairs and Forestry (DWAF) related to eradication of the bucket system, access to water and sanitation for all clinics and schools. The Annual Report dealt with the overall performance of the Department, particularly how it had used public finances to deliver on their legislative mandate. The Auditor General had given the Department a qualified audit on Vote 34 and a disclaimer on the trading account. Although this result had been expected, there had nonetheless been an improvement on the Annual Report from previous years, and she hoped to achieve an unqualified audit report by the end of her term.

When the Minister assumed office in June last year, she wanted to improve the finances of the Department so that it would be in line with the modern accounting standards. The problem was that previously the Department had cash based accounting systems, dams that did not add value and staff not equipped to handle accrual accounting systems. The Department had embarked on a comprehensive multi faceted strategy to address these challenges. The Minister further mentioned other challenges the Department had faced such as performance agreements, critical posts not filled, under spending, effective and coordinated oversight of the institutions. She stated that the Department had taken steps to rectify these problems.

The Department had achievements in respect of water and sanitation where it had established relations with the local government. It could show an increase in water supply, more eradication of buckets, and greater emphasis on drinking water quality. The Department had established partnerships with government, private sector companies and academic institutions. There was significant contribution to the forestry sector.

Accounting Officer’s Overview
Dr Moshibudi Rampedi, Acting Director General, DWAF, referred to the achievements and challenges as highlighted by the Minister. She stressed that although the Department was not pleased with the qualified audit report, on the positive side it had seen some improvement with the appointment of the new Chief Financial Officer and Deputy Chief Financial Officer. The Department had intervention strategies that included disciplinary actions in addressing financial misconduct. The Department had taken steps in improving the quality of its planning and reporting with the help of National Treasury’s Pilot Department. Some of the employees in the Department did not have the necessary skills required, and that posed a challenge.

Discussion
The Chairperson referred to the technical quality of the report that needed to be improved.

Mr J Arendse (ANC) wondered about the correlation of time frames on the Annual Report.

Mr Arendse asked how the Department engaged with water based research by the research councils.

Mr M Mzizi (IFP, Gauteng) referred to the drinking water problem, because of conditions around water resources, especially where rivers were passing through communities. He noted that there were other issues, such as that found at the Vaal Dam, where water had been polluted, and said the Department had not seriously addressed such challenges.

Mr Mzizi was concerned that the Department had a problem of shortage of skills yet it was an old Department and wondered what was preventing it from obtaining those skills.

Dr Rampedi replied that this was a Department largely driven by mathematics, which in itself was a challenge, and they had been recruiting in the private sector. They had formed partnerships with learning academies although they would not have the assurance of retaining those people due to the competitive nature of the environment.

Mr M Swathe (DA) agreed with the previous speaker on the challenge of a clean water supply and requested the Department to address that. 

Mr Swathe was also worried about the shortage of skills and asked what the Department was doing in addressing this challenge.

Dr Rampedi replied that the Department was working with institutions of higher learning such as Fort Hare University, which would provide courses to equip students so that when they came to the Department they had the necessary skills required.

Mr L Van Rooyen (ANC, Free State) expressed his displeasure at the technical quality of the Annual Report. He mentioned that there was little said on the State of Nation address, and the reporting in relation to the audit committee was merely copied year after year as a template, with data being changed. The human resource section was confusing, so he thought that the report itself was problematic and difficult to consolidate.

Dr Rampedi noted the comment raised by the Member on the technical quality of the report, and noted that the Department was working with the National Treasury (NT) to try to gain expertise on what was required in their report and hopefully in the next financial year the Department would have been able to address those issues. 
Ms S Maine (ANC) asked if an unqualified audit report could be expected, and asked what would the Department do in ensuring that it could be achieved.

Dr Rampedi agreed that the Department of Water Affairs and Forestry had a challenge of receiving qualified audit reports, but was working on addressing that.

Mr M Sibuyana (ANC) sympathised with the Minister and indicated that she would not be able to visit places or become involved in the ground level work of implementation, as she was involved in the decision-making processes of what happens in the Department.

The Minister responded by stating that her appointment as a Minister did not exclude her from operating as a public representative. She was a member of Parliament first before taking up her role as Minister and it was her duty to ensure that the public had services delivered. Through her constituency work, she was able to go to the ground and ensure that the people were getting access to facilities.

Mr Sibuyana referred to the clean-around strategies referred to by the presenter and wondered how the Department had hoped to achieve it.

The Minister answered that she noted the concerns raised by the Department not having provided the outline of areas where they had provided water. The Department would provide data on the places where they had given water or access to sanitation, and there was indeed a database of this.

Ms N Sigcau (UDM) was concerned about the critical posts not filled and asked why that was the case. She further asked if there were enough people in training to gain the required skills.
 
Mr P Ditshetelo (UCDP) requested clarity on the skills development academy and how they related to the Sector Education and Training Authorities (SETAs). He further asked the results that the Department was hoping to achieve in light of the counter-attraction from the private sector.

Dr Rampedi responded that the Department worked with SETAs that involved water and forestry. They had planned a workshop on forestry and indicated the requirements referred to by the Department.

A Member asked about the kind of benefits. He noted that because of the partnerships, the Department would invest in the Academy, but asked what assurance did the Department have in return that they would retain those skills.

Dr Rampedi said the investment was intended to assist the entire sector, including the challenges faced by government and its Departments. The Department of Water Affairs and Forestry had been working with the Department of Public Service and Administration (DPSA) in trying to find ways of retaining employees with the necessary required skills. 

Mr Arendse requested an update on the Standing Audit Committee established in the last financial year.

Rev P Moatshe was interested on what the Department had implemented and whether or not the people were happy. He referred to the selling of water, noting that in some cases, the infrastructure did not provide water. The people had been complaining that they were paying for water they were not receiving.

Dr Rampedi responded that as Members interacted with the Annual Report by the Department they should appreciate other achievements that the Department of Water Affairs and Forestry has had.

Mr O Oyaya, Chief Financial Officer, DWAF, responded that the Department would need an asset plan in order to identify the conditions of the infrastructure and how the Department was delivering on their mandate. 

Rev Moatshe wondered whether the partnerships that the Department had with the local government were working and whether or not the Department had reached its target on the bucket eradication project.

The Minister replied it was their constitutional right to distribute water to the people; but it was the function of the municipalities to provide water to the people. The Department of Water Affairs was accountable as it was supposed to give direction, advice and mobilise funding.

The Chairperson agreed with Mr Van Rooyen on the quality of the Annual Report and requested the Department to give further consideration to the audit report. She suggested that there should be internal control systems set in place and effective use of the audit committee. The Annual Report did not include an update on SCOPA’s resolutions. The Annual Report also did not address the targets as set out in the strategic plan and how it was hoped to achieve them. 

The Minister requested that the questions should be presented and answered when the representatives gave the presentations. She further mentioned that the Annual Report was historical.

Chief Financial Officer’s Presentation
Mr O Oyaya, Chief Financial Officer: DWAF, introduced the financial report. He noted that in the previous year the Department had under spent by 2%, and this figure had been rolled over to the current fiscal year with the approval of the National Treasury. Mr Oyaya provided an overview of financial expenses according to the different programmes of the Department. He gave an indication of the Department’s history on their audit reports.  In respect of the current audit report the Department had received a disclaimer and emphasis of matter on the trading account. The Department received an unqualified audit on the forestry trust. The restructuring of the finance structure had been ongoing, especially with the appointment of the New Chief and Deputy Chief Financial Officers and there had been workshops already held.

Mr Oyaya mentioned that the Department operated with numerous assets through the bulk infrastructure, such as water, under the construction section of the Department. The Department was assisted with the mission of the accounting fund and with recommendations that came from the audit report. It had been refining systems so that these measured up to the required reporting standards. The Audit committee did consider the Annual Report from the Auditor General and regular audit reports.
 
Discussion
Mr Mzizi requested clarity on the causes of under spending and rollovers.

Mr Oyaya replied that the key contributor was the water resource management, which showed the biggest roll over, but explained what that rollover would continue to do.

Mr Van Rooyen agreed with Mr Oyaya that they was a big organisation, but noted that the size did not give excuses. There should be no compromise on the financial management, otherwise the rollovers could not be justified.

Mr Van Rooyen referred to the deficits in relation to the internal audit and AG’s report. He further mentioned that the reason for the irregularities on the report was lack of supporting documents. He wondered what the role of the internal audit was since they were supposed to pick up on these kinds of irregularities.  He questioned their effectiveness and the qualifications.

Mr Van Rooyen asked also about the relationship between the audit section of the Department and the Audit Committee and asked if these two committees related with the EXCO, compliance committee and so forth.

Mr Oyaya responded that he assumed office in July this year as the Chief Director of internal audit. He had been attending the audit committee on behalf of the accounting officer, and sometimes with the accounting officer. They had been in a good working relationship with the other committees and they all considered reports.

Mr Van Rooyen was concerned about the Asset register and indicated that it needed someone with basic accounting skills, not necessarily someone with a degree, and wondered what was so difficult in taking stock of dams.

Mr Oyaya replied that the Department, during the last presentation, had shown a geographical spread presentation of their asset management. The Department had more than 500 dams in South Africa and would provide that information at the next meeting with the members. Mr Oyaya mentioned that the spread of the asset was large and had complex process involved in verifying the assets and placing them into the asset register. The Asset Register for immovable assets would be complete this year and the bulk infrastructure asset would only be completed some time next year.

Mr Arendse asked for the total and percentage of under spending. He requested the total estimates for building dams.

Mr Oyaya replied that the budget for the de Hoop dam was R2.6 billion and target for completion of this dam would be around 2011.

Mr Arendse was concerned why under spending in both programmes was linked to municipalities.

Mr Arendse wondered about the salary over payment noted in the last financial year and noted the Department’s promise to clean that up, yet for this financial year it had increased.

Mr Oyaya noted that this over payment was more to do with accounting procedures in handling of staff, or when staff passed on, in terms of what to do with their salaries. The Department had been attending to issues on overpayment of salaries and had been trying to recover salary over-payments.

Mr Sibuyana agreed with Mr Mzizi that it was difficult to follow the presentation and asked how much the Department had set aside for boreholes.

Mr Sibuyana also referred to the vandalised assets that were due to political warfare and wondered what the Department was doing in respect of that.

Mr Swathe commented on the steering committee referred to by Mr Oyaya and asked who would monitor the progress on an annual basis. He asked what were the terms of reference for this committee to work.

Mr Oyaya replied that the steering committee was to oversee the process of financial accounting, with auditing issues, and to consider information that would be required by the audit committee. 

Mr Swathe was concerned about the intervention process in ensuring the accounting systems aligned with the general accounting standards.

Mr Oyaya responded that the Department had computerised accounting software. The processes that would be re-listed and revised would be reconfigured to address issues coming from the audit report.

Ms Maine wondered why the Department had a depreciation of R35 million yet there was no asset register for this year.

Mr Oyaya answered that the asset management also brought concern to the Department and the depreciation of R35million referred to the assets that had already been captured on the asset register.

Ms Maine requested a break down on the entertainment costs.

Mr Arendse indicated that the section 32 process required monthly expenditure reports to be directed to the National Treasury. He noted that the Department had an increase in expenditure during February 2007. He wondered whether or not this would be considered as fiscal dumping.

Mr Oyaya replied that there were certain processes the Department had to follow in approving their projects that required financial scrutiny and these had delays. He further mentioned that part of the expenditure would pick up over time; hence it appeared as though they spent much in February. Mr Oyaya mentioned that the process of transactions depended on how fast various project managers processed them. The build up would reflect on the way the invoices had been processed around January and March. 

Mr Van Rooyen was concerned about the quality of the Department’s business plan in relation to fiscal dumping.

Mr Van Rooyen referred to the training budget increase, in context of the Department’s requirement to use 1% of budget for training. He asked why they were not using the full 1% as stated on the treasury regulation.

Mr Oyaya responded that they were supposed to provide 1% in relation to the scarce skills levy, where 10% was paid to SETA related activities and 90% would be retained in DWAF for capacity building.

The Chairperson asked for explanation on the non-compliance with the regulations under the Public Finance Management Act (PFMA) and administration of debt

Mr Oyaya stated that the administration of the debt worked with the way the Department had been structured. In relation to the Division of Revenue Act, the Department did not comply fully with the fund as related to municipalities and so there were some delays in that particular area. 

The Chairperson was concerned about the increases, excluding those of travelling. She focused on the use of consultancy and asked what the consultants were doing that could not be done internally or where skills were lacking to such an extent that they were outsourced.

Mr Oyaya replied that there had been some issues that had not gone as planned hence it had an impact on increases. This had to do with accounting procedures on salaries

Mr Oyaya mentioned that the slides were summarised on purpose, because the Department had brought with it the Annual Report, which contained more detail. 
**
Corporate Services Administration presentation
Mr David Mahlobo, Director External Transformation, DWAF, noted that there had been great improvement on the public entities although there would still need to be further work done.

The report highlighted corporate service issues and the capacity of the Department to deliver was highlighted as one of the strategic plan objectives. There had been issues related to the performance of the organisation, retention and development of skills. The question of performance bonuses had not been finalised due to performance agreement issues.

Mr Mahlobo stated that the Department still had challenges around the skills and development in respect of their mandate, as a result of capacity.  He mentioned that there was a challenge in obtaining and retaining engineers and scientists in forestry and water. The Department faced a major problem in retaining skills due to the competitive nature of the job environment in these fields, and had engaged in a short-term strategy of using service delivery initiatives where it outsourced work. The Department was responding to the skills development needs, and had been complying with the 1% levy.

Mr Mahlobo mentioned that the Department had been restructuring itself also to focus on strengthening the regions. However, there had been delays due to protected negotiations that might have impacted on the rollovers. There had been gender mainstreaming programmes that involved the participation of women and young people through capacity building workshops. There were significant achievements in the IT infrastructure development.

Discussion
Mr Van Rooyen asked about the impact of the women’s seminar.

Mr Mahlobo replied that more work needed to be done in achieving the imperatives of gender mainstreaming. The Department did have structures in place at the policy level although more work was required at implementation level. They would like to have an organisation of women around water and forestry.

Mr Van Rooyen mentioned that some of the strategies set out were not obtained, citing efficient information system, where there had been achievement of only 90%, as an example. He wondered how the Department would improve that.

Mr Mahlobo stated that the Department had ongoing challenges as a result of capacity issues but they were working on improving that. He stated that they set targets also regarding the Department putting forward a good image. There were continuing challenges also in terms of rating continuous interaction and improvement on security checks.

Mr Van Rooyen indicated that the Department mentioned they had 100% media coverage and asked how this was measured.

Mr Mahlobo responded that the Department set targets in terms of profiling the Department,  whether using print or electronic media. It had been working successfully here and also in the area of media briefings. 

Mr Van Rooyen wondered how they would achieve a performance management driven culture since this was indicated it as one of the challenges.

Mr Mahlobo replied that they would use performance bonuses in the meantime, since there was as yet no performance management in place, and had been training managers to improve the system.

Mr Mosala referred to the performance bonus and wondered who adjudicated and approved it,  and whether or not it had an impact on the morale.

Mr Mahlobo responded that the supervisor and employee would agree on a performance plan on an ongoing basis, which would be subjected to a moderating committee, headed by Directors or Chief Directors.  There was a moderation system for performance bonuses.

Mr Mosala wondered whether the retention strategy that was approved would be available for scrutiny.

Mr Mahlobo answered that arrangements would be made for the Members to get the retention strategy so that they could scrutinise it.

Mr Mosala requested clarity on the challenges raised by the Department on gender mainstreaming.

Mr Mahlobo responded that the Department had raised this issue to highlight what it had been experienced, and was trying to improve where there was a need to do so.

Mr Swathe wondered whether the plans submitted to the DPSA would be implemented.

Mr Mahlobo that the service delivery improvement plan was a requirement, and aimed at improving on the standards they already had. There was also a review on the service delivery to see what had been promised and what achieved.

Mr Mahlobo added that their own retention strategies would not be able to address the problem of scarce skills as the Department was not able, on its own, to be competitive enough.

Mr Swathe wondered whether the poor retention was a result of financial problems or other factors.

Mr Mahlobo stated that public awareness around issues of water and forestry needed more focus.

Mr Sibuyana asked how the Department measured skills.

Mr Tau was concerned about the systems set in place by the Department around retaining their skills so that they did not outsource all the time.

Mr Mahlobo responded that the Department was working with institutions to get students to obtain the required skills so that they could employ them with the necessary skills.

Mr Tau wondered who were the external service providers with so many skills that were needed by the Department.

The Chairperson asked for whom and for what purpose was the transformation intended. She further mentioned that the organogram did not live up to its reality and wondered what their reason was for restructuring. In particular, she commented that she did not see the expenditure for women empowerment and asked to what extent did the Department comply with converging action regarding women empowerment.

Ms Van de Walt requested clarity on the extensive training courses of forestry, specifically in compliance and enforcement. She asked how many people they trained, with specific sectors and success rates.

Mr Oyaya stated that the Department realised there was no performance audit but would make sure there was one done by the next financial year. 

The Chairperson noted the answers but said the main problem was that it was not reflected on the Annual Report.

National Water Resource Infrastructure Briefing
The Department noted that its programme on National Water Resources was regulated by the Water Services Act, which aimed to ensure that local government delivered, and the National Water Act, which focused on resources to ensure that pollution of water was monitored. The Department had to ensure the delivery of water and sanitation. They had challenges with the service delivery and so were not able to focus only on their core objective. They had to be involved on the ground in the eradication of the bucket system. They monitored all the institutions to see if they were delivering on their mandates.

Water Resources Management Programme Briefing
The Department noted that it had been able to supply water to all institutions in ensuring they carry out their mandate. This programme had ensured water efficient programmes in four provinces. It had also engaged with youth in water conservation through schools. The Department had started a programme for a development framework through licensing and guidelines for water use and recreational purposes. It had developed guidelines to speed up the processes of water use licenses, and had projects to protect water resources. The Department had participated in water initiatives and the posts for management had been filled, although challenges still remained due to the lack of skills. The Department had been building dams but this did not seem to be a strategy in support of the current policy of government. It had also been involved in the various rehabilitations of infrastructure to meet water demand to provide economic development in the country.

Water Services Programme Briefing
The objective of this programme was to ensure basic water supply and sanitation ensuring basic delivery. There had been an improvement on access to water services from 59% to 94%. The Schools programme had not been doing as well as expected, but the Department had persuaded National Treasury to give them funding so that they could implement this project effectively. The free basic water figure had not increased due to the challenges in the maintenance of infrastructure and this was one of the areas where the Department relied on consultants to meet the standards required.

Forestry Programme Briefing
Mr Michael Peter, Director Forestry Technical and Information Services, DWAF, introduced the targets that the Department had set in respect of their approved Broad Based Black Economic Empowerment Charter (BBBEE Charter), that was implemented in partnership with the sector, and their achievements. There were remaining challenges on agreement and time frames with other stakeholders that resulted in delays with implementation. The programme had launched seven new projects and developed a business concept on eco-tourism potential at Ngome. This programme had also experienced funding problems, but had held negotiations on cross border fires.

Discussion
Mr Arendse requested a breakdown on consultancy expenditure.

Ms Thandeka Mbassa, Deputy Director General: Regions, DWAF responded that consultants were used in outsourced work.

Mr Arendse wondered about the potential disjuncture and requested an explanation on how they would deal with that. 

Ms Mbassa replied that this was something the Department was looking into and which would be addressed as part of the restructuring initiatives.

Mr Arendse asked how the Department assisted local government with supply of water, particularly in the rural areas where people could not afford to buy the water.

Ms Mbassa answered that the Department had been assisting the municipalities on their institutional or capacity responsibilities and assisting also in the development of policy.

Mr Sibuyana was concerned that the Department was supplying water for economic development and wondered about the domestic use.

Ms Mbassa responded that previously dams were used for specific purposes and the Department was in the process of rectifying that through the bulk infrastructure programme.

Mr Sibuyana indicated that there was no mention of the Ingonyama Trust and requested an explanation.

Mr Peter answered that the Ingonyama Trust was recognised by the relevant legislation.

Ms Van de Walt mentioned that in the Eastern Cape the Department of Science and Technology assisted the Education Department at schools with water and sanitation. She wondered if DWAF was aware of this and if it too was involved.

Ms Mbassa answered that the Department of Water Affairs would follow up on provision of water to schools.

Ms Van de Walt referred to Working for Water and wondered also about the clearance programmes. She asked if this was a once-off permanent clearance or if it would involve much maintenance in future years.

Ms Mbassa noted that the Department was allocated R900 million for a three year period and this year it was mainly focusing on eradication, so that the following years would mainly involve follow-up projects.

Ms Van de Walt asked about the time frames for investigations mentioned.

Ms Mbassa responded that the Department conducted a survey and found that licensing would take about seven months. However this does not mean all licences would be completed within seven months. 

Mr Peter mentioned that the Department would also work with the SAPS where they could obtain licenses for investigations.
 
Ms Van de Walt stated that she saw a television programme on caves, concerning the threat that these would close, due to water, which was affecting forestry, and asked the Department to comment.

Mr Peter replied that the Department was aware of the caves although had not received a formal enquiry directed to the Department. DWAF would engage on it once they received the formal enquiry. 

Ms Van de Walt referred to the National and Provincial Departments not doing firebreaks on roads, and asked how DWAF dealt with that.

Mr Peter responded that all road reserves had land-owners who should comply with the legislation. The Department had been working with the land claims officer to try and get land of the department cleared.

Mr Swathe requested clarity on the sanitation backlog, which was high, and asked if the Department was advancing towards reaching the target.

Mr Swathe also referred to those places without infrastructure and asked how the Department would ensure that they obtained services.

Mr Van Rooyen was concerned about the Department’s savings.

Mr Van Rooyen wondered how far the Department was with transformation and what they were doing.

Mr Van Rooyen said the Annual Report does not speak about Project Consolidate.

Mr Mosala requested an update of intervention strategies on the challenges or shortages and the provinces affected.

Mr Mzizi stated that people living in New Esteres in Johannesburg did not have water in many cases, and there had also been water with worms. The borehole owners were selling water to those residences without water.

Ms Mbassa responded that the Department was busy with an investigation into these boreholes.

Mr Mzizi wondered what happened with water catchment during floods.

Ms Mbassa replied that the Department would come up with a survey that could suggest better ways to conserve water and that they would need to develop a strategy on how water could be used to eradicate poverty or for economic development initiatives.

The Chairperson indicated that some of the matters mentioned on the presentations did not correspond with what was on the Annual Report and wondered why that was the case.

The Chairperson referred to the targets set in the strategic plans, on the forestry minimum standards, fire fighters and fires, which were also not reflected on the annul report.

The Chairperson noted the targets for education, sanitation and others; and thought it would have been helpful if the Department provided examples on those targets relating to what was written.

Ms Mbassa noted all comments regarding the format of the Annual Report and indicated that the Department  would continue to improve until it reached the required standard.

Mr Van Rooyen requested clarity on the performance allowances that were on hold, since in the Annual Report there was a certain amount allocated to performance allowances.

Dr Rampedi replied that the amount that appeared in the Annual Report reflected bonuses and  staff or performance allowances for those staff in level nine and below. The Minister indicated that the hold applied to those people in management positions, level 13 upwards.

Ms Mbassa mentioned that the Department of Water Affairs and Forestry would have to improve on its oversight role.

Mr Mahlobo stated that he would provide a written response to some of the questions on administration relating to consultancy.

Dr Rampedi noted that there were still some responses due by the department to questions that arose earlier this year and requested guidance as to when these issues must be addressed. She further mentioned that the responses were not tabled yet. She promised that there would be improvement in respect of the Department’s inability to report financial statements adequately, together with the technical presentation of the Annual Report.

The Chairperson reminded the Department that they were seven months into the new budget year and advised that they should note the comments in order to strategise over what should be done in the remaining months.

The meeting was adjourned.