ATC210519: Report of the Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlements on the 2021/22annual Performance Plan and Budget Allocation of the Department of Water and Sanitation, Dated 18 May 2021

NCOP Cooperative Governance & Public Administration

REPORT OF THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, WATER, SANITATION AND HUMAN SETTLEMENTS ON THE 2021/22ANNUAL PERFORMANCE PLAN AND BUDGET ALLOCATION OF THE DEPARTMENT OF WATER AND SANITATION, DATED 18 MAY 2021

 

Having met with the Department of Water and Sanitation to consider the departmental 2021/22 Annual Performance Plan and budget allocation, the Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlements,reports to the National Council of Provinces (NCOP) as follows:

 

1.         INTRODUCTION

 

1.1        The Money Bills Amendment Procedure and Related Matters Act (Act No.9 of 2009)empowers Parliament to recommend, reject or amend budgets of National Departments and Organs of State. The Act also enjoins Committees of Parliament to compile and adopt Budget Vote Reports, based on interactions with the relevant Departmentsand entities on their respective strategic and annual performance plans and budgets.

 

1.3.       On 14 May 2021, Select Committee had virtual meeting with the department of water and sanitation to consider the departmental 2021/20 annual performance plans and budget allocation.

 

1.3.       The main objective of the virtual meeting was to ensure executive accountability and perform parliamentary oversight on performance and financial information related to water and sanitation as planned for the 2021/2022 by the Department of Water and Sanitation

 

 

 

 

2.         Presentation on the Annual Performance Plan and Budget Allocation of the

Department of Water and Sanitation

 

2.1        The Acting- Director-General presented the 2021/22annual performance plan and budget allocation of the Department of Water and Sanitation. The presentation focused on outputs, indicators and annual targets and budget allocation related to Administration, Water Resource Management and Water Service Management Programmes.

 

3.         Programme 1: Administration

 

3.1.       The purpose of this programme is to provide strategic leadership, management and support services to the Department. The programme also develops and promotes international relations on water resources management with neighbouring countries

 

3.2.       The 2021/22 output indicators of the administration programme include performance and financial information related to targeted procurement budget spent on youth, women and people with disability; implementation of financial recovery plan as well as the implementation of 2021/2022 annual international relation programmes 

 

3.3.       This Programme, which consumes 11.5% of the overall departmental budget, is allocated R1.95 billion in the 2021/22 financial year, up from R1.82 billion in 2020/21. This reflects a nominal rand increase of R135.7 million, which is a R57 million increase in real terms between 2020/21 and 2021/22, refer to Table 1 for details.

 

 

 

 

 

 

 

 

 

 

 

            Table 1:  Administration Budget

Programme 1: Administration

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

Ministry

52 030

 

52 048

 

51 686

Departmental management

146 862

 

146 871

 

145 321

 

Corporate services

832 945

 

837 410

 

842 105

 

Financial management

266 914

 

266 863

 

259 647

 

Office accommodation

544 446

 

561 128

 

574 431

 

Provincial and international coordination

107 717

 

108 178

 

107 783

 

Total

1 950 914

 

1 972 498

 

1 980 973

 

            Economic Classification and Medium Term Expenditure Estimates

Rand thousand

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

 

Compensation of employees

806 078

 

791 968

 

769 719

 

Goods and services

1 010 210

1 048 354

 

1 073 545

 

Transfers and subsidies

29 012

 

30 105

 

30 859

 

Payment of capital assets

105 614

102 071

 

106 850

 

Total

 

1 950 914

 

1 972 498

 

1 980 973

 

 

4.         Programme 2: Water Resource Management

 

4.1.       The purpose of this programme is to ensure that the country’s water resources are protected, used, developed, conserved, managed and controlled in a sustainable manner for the benefit of all people and the environment. This is done by developing a knowledge base and implementing effective policies, procedures and integrated planning strategies for water resources.

 

4.2.       This Programme, which constitutes 20.9% of the overall departmental budget, is allocated R3.53 billion in the 2021/22 financial year, up from R3.37 in 2020/21. This reflects a nominal rand increase of R164.6 million, which translates into a real rand increase of R22 million between 2020/21 and 2021/22, refer to Table 2 for details.

 

 

 

Table 2: Water Resource Management Budget 

Programme2: Water Resource Management

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

Water Resources Management and Support

 

6 851

 

6 793

 

6 679

 

Integrated Water Resource Planning

100 386

 

101 470

 

101 492

 

Water Ecosystems Management

47 375

 

47 438

 

47 178

 

Water Resources Information and Management

555 195

 

558 825

 

558 495

 

Water Resources Infrastructure Management

2 613 439

 

2 662 057

 

2 769 826

 

Water Resources Policy and Strategy

19 854

 

19 910

 

19 775

 

Water Resources Regulation

117 543

 

90 462

 

86 784

 

Water Resources Institutional Oversight

77 384

 

80 689

 

72 127

 

Total

3 538 027

 

3 567 644

 

3 662 356

 

Economic Classification and Medium Term Expenditure Estimates

Rand thousand

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

 

Compensation of employees

583 697

 

557 196

 

539407

 

Goods and services

263 038

 

267 680

 

270873

 

Transfers and subsidies

2 615 316

 

2 664 009

 

2 771 825

 

Payment of capital assets

75 976

 

78 759

 

80 251

 

Total

 

3 538 027

 

3 567 644

 

3 662 356

 

 

 

5.         Programme3: Water Service Management 

 

5.1.       The purpose of this programme is to develop, rehabilitate and refurbish the raw water resources and water services infrastructure to meet the socio-economic and environmental needs of South Africa.

 

 

5.2.       This appears to be the priority Programme of the Department, as it receives the highest allocation of the entire departmental budget, refer to Table 3 for financial information. Briefly, this programme receives R11.4 billion in the 2021/22 financial year, which constitutes 67.5% of the overall departmental budget.65

 

Table 3: Water Service Management Budget

Programme2: Water Resource Management

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

Water Resources Management and Support

 

37 625

 

33 877

 

35 394

 

 Water Services and Local Management

422 584

 

451 230

 

454 124

 

Regional Bulk Infrastructure Grant

6 314 100

 

6 636 539

 

6 921 302

 

Water Service Regulation

107 028

 

113 543

 

119 234

 

Water Service Policy and Strategy

1 354

 

1 312

 

1 293

 

Water Service Infrastructure Grant

4 516 844

 

4 640 449

 

4 837 184

 

Water Resources Institutional Oversight

21 604

 

22 496

 

23 539

 

Total

11 421 139

 

11 899 446

 

12 392 070

 

Economic Classification and Medium Term Expenditure Estimates

Rand thousand

2021/22

(R’000)

2022/23

(R’000)

2023/24

(R’000)

 

Compensation of employees

415 450

 

437 836

 

432 575

 

Goods and services

417 942

 

439 748

 

454 991

 

Transfers and subsidies

6 569 811

 

6 782 111

 

7 078 046

 

Payment of capital assets

4 017 936

 

4 239 751

 

4 426 458

 

Total

 

11 421 139

 

11 899 446

 

12 392 070

 

 

6.         Allocation for Infrastructure Programme

6.1.       This section in terms of the 2021/2022 annual performance plan and budget allocation, provides financial information on overview of regional bulk infrastructure grant, water boards allocation and water service infrastructure and implication to local government Refer to tables 4, 5 and 6 for financial information

 

 

 

Table 4: Overview of 2021/2022 Regional Bulk Infrastructure Grant (RBIG)

Rand thousand

Direct Grant

Indirect Grant

Total

Eastern Cape

 

481 329

 

352 215

 

833 544

 

FreeState

213 921

 

951 316

 

1 165 237

 

Gauteng

 

--------------

437 407

 

437 407

 

KwaZulu-Natal

 

238 621

 

------------

238 621

 

Limpopo

218 806

787 797

 

1 006 603

 

Mpumalanga

 

411 080

 

332 057

 

743 137

 

Northern Cape

 

106 289

 

49 631

 

155 920

 

North West

 

458 318

342 534

 

800 852

 

Western cape

27 661

 

21 973

 

49 634

 

Total

2 156 025

 

3 274 930

 

5 430 955

 

 

Table 5: Overview of 2021/2022 Regional Bulk Infrastructure Grant (RBIG

Water Boards / Rand thousands

Total

MagaliesWater Board

103 390

 

UmgeniWater Board

 

550 858

 

SedibengWater Board

 

136 721

 

Total

790 969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             Table 6: Overview of 2021/22 Water Service Infrastructure Grant (WSIG)

Rand thousand

Direct Grant

Indirect Grant

Total

Eastern Cape

 

527 000

 

------------

572 000

 

Free State

374 617

 

90 000

 

467 617

 

Gauteng

 

172 000

 

34 761

 

206 761

 

KwaZulu-Natal

 

897 050

 

----------------

897 050

 

Limpopo 

315 449

 

288 402

 

603 851

 

Mpumalanga

 

571 000

 

150 000

 

721 000

 

Northern Cape

 

284 138

 

---------------

284 138

 

North West

 

350 073

 

166 529

 

516 602

 

Western cape

129 000

 

--------------

129 000

 

Total

3 620 327

 

729 692

 

4 350 019

 

 

7.             Observations of the Select Committee

 

 

7.1.       The Select Committee has welcomed the 2021/2022 Annual Performance Plan and budget allocation of the Department of Water and Sanitation. The committee has noted that the annual performance plan has been aligned and integrated with the medium term strategic framework and the 2021 state of the nation address (SONA)

7.2.       The Select Committee has however observed, noted and raised several concerns about the performance and budget information contained in the 2021/2022 annual performance plan of the Department of Water and Sanitation

 

7.3.       The first concern of the Select Committee relates to the allocation to Consultants: Business and advisory services which has increased from R37.3 million in 2020/21 to R65.8 million in 2021/22.

 

7.4.       The second relates to the allocation to travel and subsistence which has increased substantially from an allocation of R2.8 million in 2020/21 to R44.8 million in 2021/22 (an increase of 1500%). At a time when it can be reasonably expected that travel has declined significantly.

 

7.5.       The third concern of the Select Committee relates to non-filling of the appointment of senior management such as the Director-General and the Chief Financial Officer.            

7.6.          The Select Committee has further noted with concerns about the incomplete water related projects and lack of information in the 2021/2022 Annual Performance Plan on support to Ruth Mmompati, Madibeng and JB Marks Local Municipalities in North West 

 

7.7.       Despite the concerns raised, the select committee has noted and generally welcomed the progress made by the department in stabilizing the water boards and ensuring through transparency the appointment of competent, skilled and qualified board members 

 

8.         Recommendations of the Select Committee

 

8.1.          The Department of Water and Sanitation should fast-track the process of appointing Director-General and other top officials

8.2.       the Department of Water and Sanitation should provide a provincial update report on the status of water and sanitation projects including the support provided to the municipalities in the entire country

8.3.       The Department of Water and Sanitation should provide progress report on war on leaks programmes

8.4.       As part of ensuring executive accountability and performing oversight, the select committee should align its quarterly programme in line with the 2021/2022 annual performance plan and budget allocation of the department of water and sanitation

8..5.      The Department of Water and Sanitation should provide quarterly progress reports on achievements of outcome indicators as contained in the 2021/2022 annual performance plan and budget allocation

Report to be considered

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