REPORT TO THE PARLIAMENT OF SOUTH AFRICA

PUBLIC HEARINGS ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE: JANUARY 2006

GAUTENG PROVINCIAL GOVERNMENT: DEPARTMENT OF SPORT, ARTS, CULTURE & RECREATION

 

1 DATA ON TREND ALLOCATIONS OVER A THREE YEAR PERIOD
 

2002/2003

% of available funds spent

2003/2004

% of available funds spent

2004/2005

% of available funds spent

Up to December 2005
 

Alloc

Transf

Actual

Alloc

Transf

Actual

Alloc

Transf

Actual

Alloc

Transf

Actual
 

R’000

R’000

R’000

R’000

R’000

R’000

R’000

R’000

R’000

R’000

R’000

R’000

Conditional Grant:

-

-

-

  

-

-

-

  

1,000

-

705

70.50

2,670

-

1,888
  • Mass Participation

-

-

-

  

-

-

-

  

1,000

-

705

70.50

2,670

-

1,888

CAPEX / Infrastructure

29,717

30,114

27,112

  

43,876

42,369

37,448

  

43,876

42,369

37,448

  

48,230

-

5,600
  • Facilities

28,900

29300

26,298

89,17

43,043

41,537

36,598

88,09

48,246

48,353

46,483

96,13

12,400

R5,600

R5,600
  • ICT

817

814

814

100

833

859

859

100

830

677

677

100

830

-

-
  • Competitive Sport

-

-

-

  

-

-

-

  

-

-

-

  

35,000

-

-

2 EXPLANATORY COMMENTS ON SIGNIFICANT INCREASES/DECREASES IN DATA TRENDS ABOVE

    1. Facilities: The advent of the Municipal Infrastructure Programme impacted on Departmental allocation of funds toward infrastructure development projects. Most of the funding is allocated towards the upgrading of projects linked to the Mass Participation Programme (MPP).
    2. Information and Communication Technology: In order to fast track expenditure, the Department of Sport, Recreation, Arts and Culture (SRAC) decided to identify all Library needs, and put out a tender for the installation of Information and Communication Technology (ICT) equipment in community libraries. This allowed SRAC direct control over expenditure, as well as directing the quality of work. It should be noted that in the 2005/2006 financial year, when the SRAC reverted back to actual transfer of funds to local government, expenditure against allocations, again lags behind
    3. Competitive Sport: In the 2005/2006 financial year, the department received an allocation of R35m for the upgrade of four (4) targeted competitive sporting stadia. This is in line with the competitive sporting strategy which inter alia aims to attract high profile sporting events to the province, as part of the broader Gauteng growth development strategy.
    4. Mass Participation Programme: The increased allocation is mainly due to the increase in the number of community based hubs from eight (8) in 04/05, to twenty-two (22) in 05/06.

 

3 ASSESSMENT OF DEPARTMENTAL MONITORING CAPACITY FOR FINANCIAL YEAR 2005/2006 (UP TO DECEMBER 2005)
 

2005/2006
 

Allocation

Transferred

Actual Expenditure

Conditional Grants:

2,670,000

  

1 888 000
  • Mass Participation

2,670,000

N/A

1 888 000
       

Capital Expenditure / Infrastructure Projects

48,230,000

5 600 000

5 600 000
  • Facilities

12 400 000

5 600 000

5 600 000

    • Daveyton Heritage Site (Ekurhuleni)

100 000

-

-

    • Daveyton Arts Centre (Ekurhuleni)

100 000

-

-

    • Kathlehong Heritage Site (Ekurhuleni)

100 000

-

-

    • Tembisa Heritage Site (Ekurhuleni)

100 000

-

-

    • Multi-Purpose Centres: Upgrades (Ekurhuleni)

1 500 000

-

-

    • Mamelodi Heritage Site (Tshwane)

100 000

-

-

    • Soshanguve Heritage Site (Tshwane)

100 000

-

-

    • Atteridgeville Heritage Site (Tshwane)

100 000

-

-

    • Multi-Purpose Centres: Upgrades (Tshwane)

1 500 000

1 500 000

1 500 000

    • WestRand Heritage Site (WestRand)

200 000

-

-

    • Multi-Purpose Centres: Upgrades (WestRand)

1 200 000

-

-

    • Johannesburg Heritage Site (JHB)

200 000

-

-

    • Soweto Theatre (JHB)

2 000 000

-

-

    • Arthur Ashe Tennis Stadium (JHB)

500 000

500 000

500 000

    • Multi-Purpose Centres: Upgrades (JHB)

1 200 000

1 200 000

1 200 000

    • Sharpeville Museum (Sedibeng)

1 000 000

1 000 000

1 000 000

    • Mphalatsane Hall (Sedibeng)

1 000 000

1 000 000

1 000 000

    • Sebokeng Multi-Purpose Centre (Sedibeng)

500 000

500 000

500 000
  • ICT

830,000

-

-
    • St Anthony’s (NGO) (3 security desks)

6 000

-

-
    • Halala Community Library

191 000

-

-
    • Winterveldt Community Library

246 300

-

-
    • Ekangala Community Library (Cross border)

27 600

-

-
    • Sithobeni Community Library

13 800

-

-
    • Retabiseng Community Library

14 000

-

-
    • Kagiso Community Library

12 200

-

-
    • Tshwane Metro (34 security desks)

68 000

-

-
    • Ekurhuleni Metro (68 security desks)

136 000

-

-
    • Sedibeng Municipality (30 security desks)

60 000

-

-
    • Merafong Municipality (1 security desk)

2 000

-

-
    • Mogale City Municipality (14 security desks)

28 000

-

-
    • Randfontein Municipality (5 security desks)

1 000

-

-
  • Competitive Sport

35 000,000

-

-

    • Rand Stadium (Johannesburg)

10 000

-

-

    • Sinaba Stadium (Daveyton, Ekurhuleni)

10 000

-

-

    • HM Pitje Stadium (Mamelodi, Tshwane)

10 000

-

-

    • George Thabe Stadium (Sharpeville, Sedibeng)

5 000

-

-

 

3.1 REPORTING PER PROJECT: 2005/2006

3.1.1 Conditional Grant: Mass Participation

Reasons for Under/Over expenditure

Delays experienced in the purchase of equipment, as well as in the process of the appointment of volunteers.

Interventions taken to address Under/Over expenditure

Tender for the purchase of equipment has been expedited. Blockages in the appointment of volunteers have been eliminated.

Results of interventions taken to address Under/Over expenditure

Purchased equipment has been delivered to the hubs, and a further payment (R1.3m) is in process. Volunteers are working at the hubs.

3.1.2 Capital Expenditure/ Infrastructure:

a) Facilities:

SRAC has transferred R5.6m, whilst an additional R6.8m is pending transfer, subject to the re-allocation of funds towards newly identified projects. Discussions and agreements have been completed, and the submissions of service level agreements (SLA’s)

It is projected that all funds will be transferred within the current financial year.

b) ICT Project :

Reasons for Under/Over expenditure

Await the approval and signing of the SLA’s by the implicated relevant local authorities.

Interventions taken to address Under/Over expenditure

Continuous requests for information to relevant local government officials.

Results of interventions taken to address Under/Over expenditure

Only two (2) municipalities have submitted signed SLA’s. Latest feedback from Ekurhuleni is that due to the local government elections, no council meetings will be held in February 2006. The MEC is convening a meeting with the Executive Mayor to finalise this matter

c) Competitive Sport

Funds for the stadia upgrades were allocated on the basis that respective municipalities, Department of Public Transport, Road and Works (DPTRW) and the Department work in an integrated fashion on this project. The Department is the commissioning agent (Keeping the funds), DPTR&W the implementing agent and LG the recipient, also responsible for community mobilization and consultation. The relationship between the SRAC and DPTR&W is guided by a SLA, whilst the roles and responsibilities, as well as the mechanisms for interaction of the three parties are governed by a memorandum of agreement (MOA).

Service providers have been appointed to develop project/master plans fro all four stadia.

Project 1: Rand stadium

Reasons for Under/Over expenditure

Funds were allocated to the SRAC in July 2005. Consultations and logistical preparations were first concluded

Interventions taken to address Under/Over expenditure

MOA with Department of Public Transport, Roads and Works were signed, Tripartite SLA with local government and Public Works drawn up after work-shopping the contents thereof. Continuous follow-up enquiries pertaining to the signing of the SLA are done. Council decision-making procedures have an impact. Political interventions assist progress. Processes are in process to transfer funds for this project to JHB. A Service Level Agreement has been drawn up in this regard, and SRAC is awaiting local government approval.

Results of interventions taken to address Under/Over expenditure

Tender published and awarded for the construction of Phase 1 of upgrading of the stadium.

Project 2: Sinaba Stadium

Reasons for Under/Over expenditure

Funds were allocated to the Department in July 2005. Consultations and logistical preparations were first concluded

Interventions taken to address Under/Over expenditure

MOA with Department of Public Transport, Roads and Works were signed, Tripartite SLA with local government and Public Works drawn up after work-shopping the contents thereof. Continuous follow-up enquiries pertaining to the signing of the SLA are done. Council decision-making procedures have an impact. Political interventions assist progress.

Results of interventions taken to address Under/Over expenditure

Tender published and awarded for the construction of Phase 1 of upgrading of the stadium.

 

 

 

 

Project 3: George Thabe

Reasons for Under/Over expenditure

Funds were allocated to the SRAC in July 2005. Consultations and logistical preparations were first concluded

Interventions taken to address Under/Over expenditure

MOA with Department of Public Transport, Roads and Works were signed, Tripartite SLA with local government and Public Works drawn up after work-shopping the contents thereof. Continuous follow-up enquiries pertaining to the signing of the SLA are done. Council decision-making procedures have an impact. Political interventions assist progress.

Results of interventions taken to address Under/Over expenditure

Tender published and awarded for the construction of Phase 1 of upgrading of the stadium.

Project 4: HM Pitje

Reasons for Under/Over expenditure

Funds were allocated to SRAC in July 2005. Consultations and logistical preparations were first concluded

Interventions taken to address Under/Over expenditure

MOA with Department of Public Transport, Roads and Works were signed, Tripartite SLA with respective municipalities and Public Works drawn up after work-shopping the contents thereof. Continuous follow-up enquiries pertaining to the signing of the SLA are done. Council decision-making procedures have an impact. Political interventions assist progress.

Results of interventions taken to address Under/Over expenditure

Tender published and awarded for the construction of Phase 1 of upgrading of the stadium.

 

3 SUBMISSION OF MUNICIPAL MONTHLY EXPENDITURE/PROGRESS REPORTS FOR THE 2005/2006 FINANCIAL YEAR

Project

Monthly Report Submitted (Y/N)

Reasons for Non-submission

Service Level Agreement signed for Project (Y/N)

Date SLA signed

Conditional Grants:

        
  • Mass Participation

Y

-

N/A

-
         

Capital Expenditure / Infrastructure Projects (Names)

        
  • Facilities
        

    • Daveyton Heritage Site (Ekurhuleni)

N (Funds to be re-directed)

Funds not transferred yet

N

-

    • Daveton Arts Centre (Ekurhuleni)

N (Funds to be re-directed)

Funds not transferred yet

N

-

    • Kathlehong Heritage Site (Ekurhuleni)

N (Recipient of Ekurhuleni transfer funds)

Funds not transferred yet

N

-

    • Tembisa Heritage Site (Ekurhuleni)

N (Funds to be re-directed)

Funds not transferred yet

N

-

    • Multi-Purpose Centres: Upgrades (Ekurhuleni)

N

Funds not transferred yet

N

-

    • Mamelodi Heritage Site (Tshwane)

N (Funds to be re-directed)

Funds not transferred yet

N

-

    • Soshanguve Heritage Site (Tshwane)

N (Funds to be re-directed)

Funds not transferred yet

N

-

    • Atteridgeville Heritage Site (Tshwane)

N (Funds to be re-directed)

Funds not transferred yet

N

-
    • Pretoria Museum (Tshwane)

N (Recipient of Tshwane transfer funds)

Funds not transferred yet

N

-

    • Multi-Purpose Centres: Upgrades (Tshwane)

N

Project recently initiated

Y

Nov 05

    • WestRand Heritage Site (WestRand)

N

Funds not transferred yet

N

-

    • Multi-Purpose Centres: Upgrades (WestRand)

N

Funds not transferred yet

N

-

    • Johannesburg Heritage Site (JHB)

N

Funds not transferred yet

N

-

    • Soweto Theatre (JHB)

N

Funds not transferred yet

N

-

    • Arthur Ashe Tennis Stadium (JHB)

N

Project recently initiated

Y

Nov 05

    • Multi-Purpose Centres: Upgrades: Poortjie (JHB)

N

Project recently initiated

Y

Nov 05

    • Sharpeville Museum (Sedibeng)

N

Project recently initiated

Y

Dec 05

    • Mphalatsane Hall (Sedibeng)

N

Project recently initiated

Y

Dec 05
  • ICT
        
    • St Anthony’s (NGO)

N

Funds not transferred yet

Y

Dec 05
    • Halala Community Library

N

Funds not transferred yet

-

-
    • Winterveldt Community Library

N

Funds not transferred yet

-

-
    • Ekangala Community Library (Cross border)

N

Funds not transferred yet

-

-
    • Sithobeni Community Library

N

Funds not transferred yet

-

-
    • Retabiseng Community Library

N

Funds not transferred yet

-

-
    • Kagiso Community Library

N

Funds not transferred yet

-

-
    • Tshwane Metro (24 security desks)

N

Funds not transferred yet

-

-
    • Ekurhuleni Metro (24 security desks)

N

Funds not transferred yet

-

-
    • Sedibeng Municipality (24 security desks)

N

Funds not transferred yet

-

-
    • Merafong Municipality (24 security desks)

N

Funds not transferred yet

-

-
    • Mogale City Municipality (24 security desks)

N

Funds not transferred yet

-

-
    • Randfontein Municipality (24 security desks)

N

Funds not transferred yet

Y

Dec 05
  • Competitive Sport
        

    • PTR&W (Implementing Agent

Y

Transfer of funds subject to implementation progress on site

Y

Dec 05

    • Rand stadium

Y

Transfer of funds subject to signing of SLA

N

-

    • Sinaba Stadium

Y

Transfer of funds subject to implementation progress on site

N

-

    • HM Pitje stadium

Y

Transfer of funds subject to implementation progress on site

N

-

    • George Thabe

Y

Transfer of funds subject to implementation progress on site

N

-

4 ATTACHED PLEASE FIND THE FOLLOWING INFORMATION PERTAINING TO THE CONDITIONAL GRANT: MASS PARTICIPATION PROGRAMME (ALSO IN ELECTRONIC FORMAT):

    1. Certified Business Plans:

      2.

      Yes

      No

      X

      		  

    2. Cash Flow Projections:

      3.  

      Yes

      No

      X

      		  

    3. Expenditure Plan:

Yes

No

X

  

 

 

 

 

 

 

 

 

REPORT TO EMT: MOA’S AND SLA’S: JANUARY 2006

 

HUBS SLA’s: Progress

Tshwane: Submitted a signed copy. To be forwarded to HOD for signature

Midvaal: Council approval received. Copy of Council minutes received. SLA to be forwarded to HOD for signature

Randfontein: Submitted a signed copy. To be forwarded to HOD for signature

Ekurhuleni: No Council meeting till April. Official will try and expedite process via Municipal Manager

Johannesburg: MOA work-shopped and revised in October 2005. Discussions held with their Legal Advisor in October. In January, JHB officials requested confirmation of SLA content. Official indicated SLA will be approved in February

 

COMPETITIVE SPORT MOA’s & SLA: Progress

SLA with PTR&W designated as implementing agent: Signed and in process of implementation

MOA’s: Drawn up and distributed to local government:

Received positive feedback from Tshwane. In principle approved, and reflected as such in the Competitive Sport meeting minutes

Funds (R10m) to be transferred to JHB. SLA drawn up and forwarded to JHB. The Department is awaiting the signing thereof for Funds Transfers to proceed. Process dynamics has an impact on progress in this regard

Copy of Emfuleni Council Resolution received (05.10.2005), taking note of the allocation of R5m, requesting certain information to be submitted and Emfuleni officials nominated to serve on relevant communication structures. No decision on MOA

Ekurhuleni: No Council meeting till April. Official will try and expedite process via Municipal Manager