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 & Traditional Affairs, Water and Sanitation and Human Settlements

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