Letter dated 27 October 2003, from the Minister of Transport to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the following annual reports:

Madam Speaker,

Cross Border Road Transport Agency
The provisional financial statements of the Agency were finalised and submitted for audit within two months of the end of the financial year.

During the audit review, the Office of the Auditor-General identified several errors and omissions in the financial statements. The Chief Financial Officer of the Agency worked closely with the Office of the Auditor-General to rectify and finalise the financial statements. The process that ensued to rectify the errors and omissions on the financial statements caused a delay in the finalisation of the audit and annual report within the prescribed timeframes.

Urban Transport Fund
The audit for 2003 was delayed due to the late finalisation of the audit of the previous two years. The combined audit report for 2002 and 2001 was only finalised and delivered on 1 October 2003. By the end of September 2003 the audit report for the financial year ended 31 March 2003 was not yet received. The annual report could therefore not be finalised within the prescribed timeframes.

South African National Roads Agency Ltd.
The financial statements were finalised and submitted for audit within two months of the end of the financial year.

The Board of the Agency approved the financial statements, as adjusted during the completion of the audit, on 5 August 2003. By the end of September 2003 the audit report was not yet received. The annual report could therefore not be finalised within the prescribed timeframes.

South African Maritime Safety Authority
The audit for the previous year was delayed due to a forensic audit that was instituted within the Authority. The Authority requested the Office of the Auditor-General to finalise the audit for the previous year even though the forensic audit has not yet been finalised.

Because of the delay in the finalisation of the previous year's audit, the audit for the year ended 31 March 2003 only commenced on 4 August 2003. By the end of September 2003 the audit report was not yet received. The annual report could therefore not be finalised within the prescribed timeframes.

Road Accident Fund
The provision for outstanding claims has a material impact on the financial statements of the Road Accident Fund. The actuarial valuation of outstanding claims is a time consuming process done by external actuaries, and was not finalised on time for finalising the financial statements within two months of the end of the financial year.

The delay in the finalisation of the actuarial valuation of outstanding claims caused a delay in the finalisation of the audit. By the end of September 2003 the audit report was not yet received. The annual report could therefore not be finalised within the prescribed timeframes.

Road Traffic Management Corporation
The Road Traffic Management Corporation was listed as a Public Entity and commenced activities during the financial year ended 31 March 2003. Because the functions that should be taken over from the Provincial Authorities by the Corporation were not yet agreed to, no financial support staff was appointed during the year.

The Department of Transport arranged for the creation of accounting records and the processing of financial transactions and compiled the first financial statements of the Corporation in order to assist the Corporation to comply with the reporting requirements of the Public Finance Management Act.

The financial statements of the Corporation were submitted for audit on 20 June 2003. By the end of September 2003 the audit report was not yet received. The annual report could therefore not be finalised within the prescribed timeframes.

Signed
A M Omar, MP
MINISTER OF TRANSPORT