ATC160412: Report of the Select Committee on Finance on the Follow up of taking Parliament to the People at Oudtshoorn, dated 12 April 2016

NCOP Finance


1.             Introduction and Background

The National Council of Provinces (NCOP) visited Oudtshoorn local municipality during the week of April 2015 on its Taking Parliament to the People (TPTTP) Programme. The NCOP then compiled a report detailing the issues that transpired from the engagements with the Oudsthoorn Community. Specific matters of the report were referred to the Select Committee on Finance to follow up.

The Committee had studied and analysed the TPTTP report, the Western Cape Provincial Minister’s undertakings as well as the responses provided by the Minister. The analyses found that most of the service delivery issues in the TPTTP report are sector specific and do not directly relate to the Select Committee on Finance.

The Committee had engagements with the Western Cape Provincial Treasury in Parliament on 04 November 2015 to follow up on relevant issues raised in the report.

2.         Summary of the undertakings raised by the Provincial Minister

Table 1 below summarises the undertakings made by the Western Cape Provincial Minister during TPTTP Opening Ceremony held on 13 April 2015 summarised in the table below. Progress reported focuses on the budget allocation and spending of the financial year 2015/16 and not the total MTEF allocation.



Progress reported as at October 2015

Stilbaai Road rehabilitation  infrastructure project costing R40 million

R40 million budget not spent, a contractor was not yet appointed

Blanco transport infrastructure project, R22 million and Glentana road upgrade costing R26 million

R19.6 of R22 million was spent on Blanco project and R23 of R26 million was spent on Glentana project. Completion was envisaged in September 2015

Health Technology infrastructure: R1.84 million at George; R2.5 million at Mossel Bay, R2 million at Oudtshoorn District Hospital

None of the R1.84 million budget was spent but the project had reached a practical completion.

The R2.5 million at Mossel Bay and R2 million at Oudsthoorn had not spent, however, the specifications of the project had been completed and advertised through the integrated procurement system

New Eden Nursing College in George at R21.3 million over the 2015/16 MTEF

R5 million of the R20 million budgeted for hostel upgrade had been spent and R1 million of the R2 million for health technology had been spent.

Two new secondary schools in Thembalethu and Pacaltsdorp (R9.3 million in 2015/16).

Two primary and one secondary schools in Hessequa and primary schools in Mossel Bay

R1.4 million of R9.3 million was spent in Thembalethu and transfer of land was still in progress. R1 million budgeted to address inappropriate structures at Pacaltsdorp over the MTEF was expected to be spent in the outer years.

Hessequa schools, Rhenendal spent R2.3 million of R21.8 million by July 2015; Concordia primary could not spent total R13 million allocated, Concordia Secondary spent R3.9 million of R19 million allocated by July 2015. A consultation team had to be appointed at Rhenenal, Concordia primary awaited site hand out in April 2016 and Concordia Secondary was still acquiring land.

Diaz primary could not spend the total R5 million allocated. A consultation team still had to be appointed.

R7.7 billion housing and related infrastructure in the region over the medium term

The Bitou housing project budgeted R43 million, spent R14 million by July 2015. Implementation was on track

George project spent R8.3 million of R95 million by July 2015.

Hessequa project could not spent the total R13 million allocated because claims had not been submitted

Knysna project spent R4.2 million of the R50.7 million allocated and implementation was on track

Mossel Bay project spent R5.7 million of R49 million allocated

Oudsthoorn project could not spend the total R49.7 million allocated

Kannaland could not spend R5.2 million allocated. The project was in the planning phase

High municipal water bills challenge in Mossel Bay

Misappropriation of funds earmarked for agricultural production as well as lack of transformation

Budget allocation of R9 million made to address water challenges in Kannaland and Ladysmith

A total of R250 million had been allocated to emerging farmers and a feasibility study had been undertaken regarding the Agri park in George.

Roll out of broadband internet through Wi-Fi hotspots, also in rural communities

The project covered 560 completed buildings, activated 456 layer 2, installed 260 layer 3 and activated 260 layer 3 in the City of Cape town, George, Stellenbosch, Paarl and Worcester 




3.         Committee Observations

The Committee had engagements with the Western Cape Provincial Treasury representatives on 04 November 2015 and made the following observations:

3.1       Acknowledged that, although responses had been provided some of the issues may still require follow up in the Eden District;  and

3.2       The Committee noted that most of the issues referred to are sector specific, although they have financial implications.


4.         Recommendations

The Committee recommends as follows:

4.1       The relevant Select Committees in the NCOP should follow up on sector specific issues raised in the TPTTP report and take these issues up in their respective committee oversight work;

4.2       The Select Committee on Appropriations should follow up on conditional grant funded projects identified in the report; and

4.3       The Western Cape Provincial Minister of Finance should provide feedback to the Committee on progress made regarding the issues raised.


Report to be considered.



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