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 |
|
52 048
|
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) |
|
|
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 |
|
557 196
|
539407
|
|
Goods and services |
263 038
|
267 680
|
270873
|
|
Transfers and subsidies |
2 615 316
|
2 664 009
|
|
|
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) |
||
|
|
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
|
|
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 |
|
|
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 |
||
|
|
------------ |
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
Documents
No related documents