PRESENTATION BY MEC MAYISELA TO THE SELECT COMMITTEE ON FINANCE RE: CONDITIONAL GRANTS

NORTH WEST PROVINCE

DEPARTMENT OF AGRICULTURE CONSERVATION AND ENVIRONMENT

4TH MAY 2006

CAPE TOWN

  1. Trends on Conditional Grants
  2.  

     

    2004/05

    2005/06

    2006/07

    2007/08

    2008/09

    Landcare

    CASP

    Disaster G

    R 6 370

    26 875

    R 5 000

    33 594

    16 000

    R 4 450

    40 313

    -

    R 4 672

    53 091

    -

    R 4 897

    55 639

    -

    TOTAL

    R 33 245

    R 54 594

    R 44 763

    R57 763

    R 60 536

     

    NB. The amount of R16m was only allocated to the province in December 2006 during the adjustment budget.

     

  3. Spending for 2005/06
  4.  

    The spending in relation to projects as at 30 March 2006 is as follows:

     

    Budget

    Spending at 31 Dec 2006

    Expenditure

    31 Mar 2006

    % Spend at 31 Mar 2006

    Landcare

    CASP

    Disaster G

    R 5 000

    33 594

    16 000

    R -

    1 411

    -

    R 1 468

    4 351

    -

    29

    13

    -

    TOTAL

    Roll over

    R 54 594

    R 1 411

    R 5 819

    R 48 775

    11

    89

     

  5. Spending on Funds Transferred to DED at 31 March 2005

The Table below shows spending within DED of the amount which were transferred by the Department on 31 March 2005:

 

 

Amount

Rolled Over

Spending at 31 Dec 2006

Expenditure

31 Mar 2006

% Spend at 31 Mar 2006

Landcare

CASP

R 4 579

20 595

R 1 162

10 116

R 1 230

11 100

26

54

TOTAL

Balance

R 25 174

R 11 278

R 12 330

R 12 844

49

51

 

 

 

 

 

 

 

Challenges

The Department in the initial stages implemented the projects through a public entity. It later emerged that this approach is inconsistent with the provisions of the PFMA. This resulted in a new approach of taking over all projects wholly into the Department. At this stage, this was unforeseen and thus created capacity constraints on the Department which was not yet ready for this challenge. The under expenditure in relation to both the Land Care and CASP is mainly due to one or more of the following factors

 

Progress since our Last Presentation

These short comings have been addressed through the following measures

 

 

As indicated earlier, the amount of R16 000 was only allocated in November 2005 through the adjustment budget. Plans were only approved in February 2006 and we are confident that the rollovers will be spent in this regard.

Given the new measures we are confident that the Department is now well positioned to spend the allocated grants effectively and in accordance with project plans.