Report of
the Portfolio Committee on Water and environmental affairs on budget vote 37:
water affairs, dated 13 april 2010
The Portfolio Committee on Water and Environmental
Affairs, having considered the Estimates of National Expenditure 2010: Budget
Vote 37: Water Affairs and strategic plan of the sector, for the 2010-2013
financial years, reports as follows:
On 13 April 2010, a meeting of the Portfolio Committee
on Water and Environmental Affairs was called to deliberate on the following:
· The
appropriations to Budget Vote 37 for the 2010/13 financial years.
· The
transfers of monies to entities.
· An
overview of programmes, and allocations.
· An
overview of key performance areas (priority areas) of the department and its
entities.
· Link
to government priorities.
· Challenges.
· Recommendations.
The following programmes underpin the work of the
department:
·
Administration.
·
Water management.
·
National water resources
infrastructure.
·
Regional management.
·
Water sector regulation.
The monies
allocated through the fiscus to support the strategic plan of the department on
the actual medium term expenditure framework budget allocation (baseline
figures) for the 2010/11 – 2012/13 Main Account (including earmarked funding),
reflects the following:
- 2010/11 R7
996 592 billion.
- 2011/12 R9
090 207 billion.
- 2012/13 R9
628 232 billion.
The following challenges were presented as those
impacting on the work of the department:
- The department’s need to sustain an unqualified audit in the future
compared to previous years. In
2008/09, the department received an unqualified audit, unlike past audits
which reflected under spending; emphasis of matter or disclaimers
attributed to the financial management of the department.
- The non-integrated financial systems for the Main Account pose a
problem and needs to be further improved.
- The sluggish transformation in terms of organisational systems and
processes required to support the use of financial recourses to the
department need further investigation and interaction with the key role players.
- The relationship between the regional offices and head office
requires further engagements.
- The following systems: Statutory Accounting Principles (SAP), LOGIS,
etc. requires proper implementation and post- implementation refinements,
which should incorporate long-term user requirements.
- Inadequate capacity in relation to a lack of skilled resources.
- The magnitude, spatial distribution and location of the extensive
infrastructure assets require auditable assets plans.
Members in their engagement with the presentation
asked questions and raised issues of clarity on the following:
- Under spending and
rollovers: The reflections for the expenditure outcome
as of 30 March 2010 projected an under spending of 2%, which is mainly
attributable for transfers of monies to support municipalities. The financial year of municipalities
does not coincide with the financial year of the national department and
therefore this delayed the processing of the monies in the last financial
year.
- Rollovers: These
were as a result of late submissions of invoices in respect of services
and unfilled vacancies. However,
the department will engage with National Treasury and apply for rollover
of monies to be spent in the 2010/11 financial year.
- Replacement of donor funding: Due to
limited donor funding in the outer years, the department requested an
amount of 200 000 million for projects that cannot be dissolved. These in the main, comprise projects on
gender, youth and water as well as support to local government.
- Additional funding from
National Treasury: The department requested R3.1 million in
additional funding for the 2010/11 financial year, but received R225.332
million. The department will still engage the national treasury and draft
funding proposals to substantiate the need for additional funds. Although the department was denied
additional funding for projects, it is in the process of accommodating
that within the DoRA allocations and in August/September 2010, there is
space to engage further with National Treasury in relation to the efficacy
of the spending trends of the department.
- Relationship between the
business plans and spending trends in relation to procurement: Procurement
should not be undertaken randomly, but business plans must substantively
reflect the procurement in advance for the required activity.
- The establishment of the
monitoring and evaluation unit and its synergy with other regulatory units
in the department: R5 million was allocated for the establishment of this unit to
oversee the work of the ‘blue scorpions’.
- Budget for the 2010/2011
for regional and national water resources management for new
infrastructure allocations as well as maintenance of existing
infrastructure: In relation to regional bulk infrastructure, the amount allocated
is R4 329 013 million. New
infrastructure has to be built. The
funding for maintenance of infrastructure is insufficient and additional
funds were requested from National Treasury.
The department provided the following solutions to
some challenges in relation to the financial management, and this incorporated
the following:
·
A need existed to employ budget
controllers to monitor monthly spending by programme managers.
·
Vacant posts should be kept at no
more than 5% of the establishment.
·
Implementation of the integrated
management system with the help of national treasury.
·
Formulation and implementation of
clear assets management plans.
·
Solution in linking all procurement
to business plan during approvals.
The committee acknowledges that institutional changes
are in progress within the two departments (water and environment), and whilst
an overview was provided, the committee would require further briefings on the
following:
- The impacts of the global economic recession on water management
functions, and the approach of the department to this aspect of their
work.
- Quarterly briefings on expenditure outcomes in line with
performance outcomes reflected in the strategic plan.
- Impact, implications and oversight of parliament over regulations
in the water sector.
- The nexus between the water and environmental sectors and
collaborative projects between the two departments.
- Intergovernmental collaboration on water issues between national,
provincial and local spheres of government: The managing, monitoring, regulating and
compliance between national, provincial and local departments on water
issues.
- Review and costing of legislation.
- Climate change.
- The interconnectedness of departmental work and the move toward
inter-sectoral programmes and projects.
·
The state of waste water treatment
plants in South Africa
in light of the findings of the Green Drop Report.
·
The full enforcement of the National
Water Act, No 36 of 1998, including mechanisms required to make more regular
use of criminal prosecutions against illegal actions by water users.
Report to be
considered.