Budget Allocation: briefing by department

Meeting report

CORRECTIONAL SERVICES PORTFOLIO COMMITTEE
11 March 1998
BUDGET ALLOCATION: BRIEFING BY DEPARTMENT

Documents handed out: The documentation was not made available to the public.

The meeting was chaired by Limpho Hani (ANC) and the following departmental
officials were present:
Director of Parliamentary Services, P. Motaung
Deputy Director of Parliamentary Services, Elsa Jones
Deputy Commissioner of Financial Services, Watson Tshivhase
Deputy Commissioner of Support Services, S. Moodley
Assistant Director of Strategic Planning, R. Koekemoer

Committee member G. Oosthuizen (NP) raised the issue of the R70 million, which was supposed to have been frozen last year. He was concerned that the money, which was a trade-off in accepting the correctional services budget, had been used elsewhere.

The department discussed the proposed budget for 1998-1999:

Programmes: R4 345 494 billion allocated (30.9% increase on 1997/1998 voted amount)

R 835 547; 29.15% increase in spending on Administration
R2 965 145; 31.18% increase in spending on Incarceration
R 355 319; 15.19% increase in spending on Development of Offenders
R 189 483; 82.52% increase in spending on Community Corrections

Standard Items
26.02% increase in spending on Personnel
34.33% increase in spending on Administration
39.36% increase in spending on Stores and Livestock
221.98% increase in spending on Equipment
45.26% increase in spending on Professional and Special Services
117.82% increase in spending on Transfer Payments
17.26% increase in spending on Miscellaneous Expenditures
19.05% decrease in spending on Land and Buildings

Committee members expressed concern at the inaccessibility of the budget and the duplication of similar items under various programmes. There was also concern at the increase in professional services (ie consultancy fees) and the small allocation for Rehabilitation and Community Corrections.

The department explained that the increases were due to:
overtime pay for officials working on the weekends;
the hiring of 700 additional employees which is necessitated by the increase in the number of probationers and parolees;
the purchase of costly security equipment.

Concerning consultancy fees, the department did not respond to the query regarding a R2 million allocation for a consultant to investigate medical aid schemes for 4 months. In addition, the department failed to give an adequate response to where the income generated from products sold by prisoners, goes. In general, the committee was dissatisfied with the budget.

ANSWERS TO OUTSTANDING QUESTIONS: PORTFOLIO COMMITTEE: 11 MARCH 1998

WHAT IS THE % INCREASE IN THE COMMUNITY CORRECTIONS PROGRAMME

1994/95 1995/96 1996/97 1997/98 1998/99
R ‘000 R’000 R’000 R’000 R’000
58 870 65 935 92 759 103 817 189 483 Voted Amount
0 12% 40,68% 22,92% 82,52% % Increase

TOTAL DIRECT PERSONNEL RELATED EXPENDITURE
1997/98
R’000
2 772 558

1998/99
R’000
3 490 711

WHAT HAPPENS TO THE OLD AND OBSOLETE EQUIPMENT IF THEY ARE REPLACED BY NEW EQUIPMENT?
IF IT IS BEING SOLD-WHAT HAPPENS TO THE MONEY RECEIVED?
The Department approaches other Government Departments with a list of all the old equipment. If a need for the equipment exists, it is transferred according to logistical procedures to the respective Departments. If no need is registered by other Departments, the equipment is sold by means of tender, in which case the money received is paid directly into the State Revenue Account. In cases where the equipment is useless, it is destroyed and written off.

4. WHAT IS THE FULL PROCEDURE WITH REGARD TO THE APPOINTMENT OF CONSULTANTS?
· The need for a consultant is registered by the main user by means of task directives/ specifications.
· The commissioner certifies that proficiency does not exist within the Department to execute the task or services.
· The Department then goes out on tender according the specifications stipulated by the main user (Advertising in the Tender bulletin).
· The response on the tender are evaluated according to laid down criteria.
· The tender is then awarded to the successful applicant by the delegated Department/State tender board.

5. WHAT IS BEING BUDGETED FOR UNDER THE RESPONSIBILITY "SPECIAL FUNCTIONS"?
Funds were allocated under the Responsibility" Special Functions" due to the fact that, at the time of the allocation of funds to the various provinces, the following issues still outstanding was:

· R 447,000 million for overtime remuneration: As the Department and unions have not come to an agreement regarding the payment of overtime remuneration for the 1998/99 financial year;
· R 146,203 million for equipment: The allocation of funds to the various provinces were not completed due to outstanding details from Provinces regarding their needs for equipment for 1998/99;
· R 114,791 million for the appointment of additional personnel: The Department is still in process to determine the allocation of personnel after which the funds will be shifted to the relevant provinces
· R 35,679 million for the training and retraining of personnel for which a National Business Plan was not finalized at that time (This amount included personnel and operating expenditure);
· R 30,000 million for the implementation of a Standby Allowance for all members on Standby duty on which the policy was not finalized at that stage; and
· R 10,350 million for the activity: Building Services that could not be allocated to the provinces due to certain policy changes and function shifts within the chief:
Directorate Industries which was not finalized.

6. DETAILED BREAKDOWN OF THE ESTIMATED INCOME FOR 1998/99:
R 69,825 MILLION.
PRISON LABOUR
Hiring out of prisoners to perform different duties 3 799 298.31

FARM PRODUCTS
Selling of surplus products to members and the public 1 348 606.69
such as:
· Vegetables;
· Fruit;
· Milk,
· Meat, etc.

LABOUR WORKSHOPS 2 466 897.96
Levies workshop 2 368 771.46
Scrap iron 50 363.42
condemned equipment 831.12
Sale: empty bags & holders 46 931.96

PRISON INCOME 11 867 713.14
· Hairdresser 437 981.00
· Fines 11 174 015.64
· Parole fees 1 465.56
· Unclaimed property & cash 81 340.40
· Prohibited immigrants/hostages 172 910.54

MEMBERSHIP FEES 41 397 872.89
Transport 1 340 011.77
Advances & loans 480 903.45
Official fines 58 396.25
Witness fees 1 551.37
Tenancy: accommodation 29 963 763.48
Club & sport equipment 61 228.32
Miscellaneous interest 9 492 018.25

ADMINISTRATION FEES 4 032 939.62
Insurance fees 4 000 061.69
Handling fees 2 016.86
Typing of trial minutes 0
Waste paper 30 861.07

INCOME OTHER
Other income such as: 4 911 330.69
Refunds of previous years overpayments (expenditure);
Recovery of study loans; and
Interest on loans.
TOTAL 69 824 659.30



7. CONSULTANTS TO BE APPOINTED FOR AN INVESTIGATION INTO THE CONTINUED EXISTENCE OF THE DEPARTMENTS MEDICAL SCHEME FOR PERSONNEL IN ITS PRESENT FORMAT.
7.1 An amount of R 2,000 million is budgeted for this consultant service which is estimated to be completed in three phases:
· It is estimated that Phase 1 will be completed in four (4) months which will consist of recommendations and assistance in the implementation of alternative measures/policies/ agreements/ benefits to the current system within the parameters of the present financial constraints;
· Thereafter, the consultant will facilitate in recommendations during discussions with employee organizations; and
· Finally, in Phase 3 general assistance by the tenderers, for a fixed period of twelve(12) months after completion of such an investigation will be done in an attempt to rectify the problem areas and implement possible recommendations made.