The Budgetary
Review and Recommendation Report of the Portfolio Committee on Communications
on the Performance of the Department of
Communications for the 2009/10 financial year, dated 20 October 2010
The Portfolio Committee on
Communications, having assessed the service delivery performance of the
Department of Communications, reports as follows:
1.
Introduction
1.1.
Mandate of the Committee, including provision of Section 5 of the Money Bills
Amendment Procedures and Related Matters Act, No. 9
of 2009.
According to Section 5
of the Money Bills Amendment Procedure and related Matters Act, the National Assembly, through its Committees, must
annually assess the performance of each national department. The Committee must
submit an annual Budgetary Review and Recommendation Report (BRRR) for each
department that falls under its oversight responsibilities for tabling in the
National Assembly. These should be considered by the Committee on
Appropriations when it is considering and reporting on the Medium Term Budget
Policy Statement (MTBPS) to the House.
The Portfolio Committee on
Communications considered the Budget of the Department of Communications on 09
March 2010. The Committee considered the Department’s Annual Report 2009/10 on
13 October 2010.
2. The Department of Communications
2.1. Mandate,
Vision and
Mandate
·
To create a vibrant ICT Sector that ensures that all
South Africans have access to affordable and accessible ICT services in
order to advance socio-economic development goals, support the African
Agenda and contribute to building a better world.
Vision
·
·
Building an inclusive information society through
a sustainable world class information and communication technologies
environment to enhance the knowledge economy.
The aim
of the Department is to develop ICT policies and legislation that stimulate and
improve the sustainable economic development of the South African first and
second economies and positively impact on the social wellbeing of all South
Africans. The Department also aims to oversee the performance of state-owned
entities within its portfolio.
2.2.
Strategic Priorities and Measurable Objectives of the Department
The Department’s core functions are to:
·
Develop ICT policies and legislation that create
conditions for an accelerated and shared growth of the South African economy,
which positively impacts on the well being of all our people and is
sustainable;
·
Ensure the development of robust, reliable and
affordable ICT infrastructure that supports and enables the provision of a
multiplicity of applications and services to meet the needs of the country and
its people;
·
Strengthen the Independent
Communications Authority of South Africa (ICASA), to enable it to regulate the
sector in the public interest and to ensure growth and stability in the sector;
·
Enhance the capacity of,
and exercise oversight over, State Owned Enterprises (SOE’s) as the delivery
arms of government; and
·
Fulfil
2.3.
Measurable Objectives of the Department
3.
Departmental Allocations and Expenditures 2009/10
The Department of Communications (DoC)
approved budget allocation for the 2009/10 financial year amounted to R2 470,5
billion, made up of baseline allocation of R2 266,9 billion and adjusted
estimates allocation of R203,6 million.
The adjustment estimates include an
additional allocation of R200 million for immediate liquidity requirements of
the South African Broadcasting Corporation and R3,6 million for higher salary
increases.
Spending for the 2009/10 financial
year amounts to R2 301,9 billion and under-spending of R168,6 million that
represents 6.8% of the total budget is made up as follows:
·
R8,8 million for compensation of employees due to the
resignation and promotion of staff members as well as the moratorium on staff
appointments in the Department;
·
R18,2 million for goods and services which arises for the
delay in finalising tender processes as a result of the new administration
having undertaken a reprioritisation exercise during the year under review;
·
R139 million for transfers and subsidies for Telkom: 2010
FIFA World Cup (R20 million) and Sentech: 2010 FIFA World Cup (R96 million) as
a result of the savings realised due to fixed price agreements; Programme
Production; Broadcasting Digital Migration Awareness (R20 million); and NEPAD transfer funds re-planned for transfer
to NEMISA (R3 million); and
·
R2,5 million for payment of capital assets in relation to
the procurement of test equipment.
The Department of Communications
budget is structured into six programmes:
3.1.
Programme 1: Governance
and Administration
The purpose of this
programme is to provide strategic support to the Ministry and overall
management of the Department.
Final
allocated funds are R164 786 000.00 with expenditure as at 31 March 2010
at R163 200 000.00.
3.2.
Programme 2: Information
Communications Technology (ICT), International Affairs and Trade
The purpose of this
programme is to ensure alignment between
Final
allocated funds are R49 274 000.00 with expenditure as at 31 March 2010 at
R44 600 000.00.
3.3.
Programme 3: ICT Policy
Development
The purpose of this
programme is to develop ICT policies, legislation and strategies that support
the development of an ICT sector, which creates conditions for the accelerated
and shared growth of the economy and to develop strategies that increase the
uptake and usage of ICTs by the majority of the South African population, thus
bridging the digital divide.
Final
allocated funds are R93 025 000.00 with expenditure as at 31 March 2010 at
R70 112 000.00.
3.4.
Programme 4: Finance and ICT
The purpose of this
programme is to oversee and manage government’s shareholding interest in public entities
and to facilitate growth and development of Small, Micro and Medium Enterprises
(SMMEs) in the ICT sector.
Final
allocated funds are R2 041 848 000.00 with expenditure as at 31 March
2010 at R1 923 635 000.00.
3.5.
Programme 5: ICT Infrastructure Development
The purpose of this
programme is to promote investment in robust, reliable, secure and affordable
ICT infrastructure that supports the provision of a multiplicity of
applications and services.
Final
allocated funds are R90 244 000.00 with expenditure as at 31 March 2010 at
R74 787 000.00.
3.6.
Programme 6: Presidential National Commission
This programme is
currently under review and is likely to change in June 2010 pending the outcome
of the review.
The purpose of this
programme is to facilitate the development of an all inclusive information
society by promoting the uptake and usage of ICTs for improved socio-economic
development and research. This programme is currently under review and is
likely to change during the 2011 Medium Term Expenditure Framework process.
Final
allocated funds are R31 317 000.00 with expenditure as at 31 March 2010 at
R25 578 000.00.
4. Analysis
of the Annual Reports and Financial Statements of the Department
4.1 Programme
1: Administration
Administration is Programme 1 of the
Department. The Department failed to meet its target on several key performance
areas under the operations sub-programme. On Communications and Market Services
– no substantial progress made on e-Awareness Strategy and it seems there was
duplication between BDM and e-Awareness. There was also no progress made on the
Gender, Disability, Youth and Children (GDYC) related issues due to Human
Resource constraints.
4.2 Programme
2: ICT International Affairs and Trade
ICT International Affairs and Trade
is Programme 2. In March 2009, the Department announced that Uhurunet submarine
cable, the Baharicom shareholding structure for the cabling, will be concluded
in the near future[1]. The
cable was expected to be in service during the last quarter of 2010. No real
progress has been made in this regard.
4.3
Programme 3: ICT Policy Development
The mobile market sector has for
more than seven years now been dominated by Vodacom and MTN. Together they
control 91% of the market share with Cell C securing 9 %. Some progress has
been made in terms of reducing the interconnection rates.
4.4
Programme 4: ICT
The Programme had identified, as one
of its measurable objectives as the promotion of good governance in public
entities by undertaking corporate governance reviews and more effective
monitoring of state owned entities.
This programme accounts for the
highest budget allocation of 82,8% of the total budget of the department. This
is mainly due to the transfer payment to entities in the Department’s portfolio.
The transfers constitute 95,2% of the programme expenditure. The state of a
number of state owned entities are unsatisfactory.
4.5 Programme
5: ICT Infrastructure Development
ICT Infrastructure Development is Programme
5. The Department aimed to roll-out wireless broadband to
500 Dinaledi[i] schools
in 2008, but due to insufficient funds this service was to be rolled out to
only 233 Dinaledi Schools. The Departments reported that “connectivity at
Dinaledi schools was hindered due to HR capacity challenges.
4.6
Programme 6: Presidential National Commission
This programme was under review by
the Department. The Department has not indicated its review findings during the
presentation in the Committee.
5. Rollovers
of the Unspent Funds to the 2010/11 Financial Year
Request was made to National
Treasury in terms of the applicable guidelines to roll-over the under-spending
on transfers and subsidies and on capital assets. Rollover request was also
submitted for R15,8 million of the R18,2 million under-spend on goods and
services i.e. to the maximum of 5% of the 2009/10 goods and services budget of
R315,9 million.
5.1.
Virements and Shifting of Funds
Though section 43 of the Public
Finance Management Act (No 1. of 1999)[2]
makes provision for the virements and shifting of funds from one programme to
the other, as well as movement of funds within the programme, there are certain
requirements that need to be met by an accounting officer. These conditions are
as follows:
Section 43 (2) of the Public Finance
Management Act provides that “the amount of a saving under a main division of a
vote that may be utilised in terms of (1) may not exceed 8 per cent of the
amount appropriated under that main division.”[3]
Moreover section 43 (4) states that this section does not authorise the
utilisation of a saving if:
(a) An amount is specifically and
exclusively appropriated for a purpose mentioned under a main division within a
vote;
(b) An amount appropriated for
transfers to another institutions and; and
(c) An amount appropriated for
capital expenditure to defray current expenditure.
Virement was effected on programmes
1, 2, 3, 4, 5, and 6 to programmes 1 and 5. The virement from programmes 1 and
4 - Compensation of Employees to programme 2 - Goods and Services was to defray
excess expenditure in relation to membership fees to international
organisations; Broadband Digital Migration awareness and the transaction to
unbundle the Telkom shares. Virement to Programme 5 was due to the finalisation
of Electronic Document Management System (EDMS). The Virements are in
accordance with section 43(1) of the PFMA.
The culture of virements and
shifting of funds is of concern to the Committee. Though the Public Finance
Management Act allows the conduct, it is subject to abuse in a number of ways.
Furthermore, it is indicative of lack of proper financial planning in the
Department.
It is also worth noting that for a
number of programmes that have under-spent their budget, the Department did not
provide adequate information to support the expenditure patterns. It noted that
most of under-spending in various programmes was as a result of invoices not
being submitted on time, as well as vacant posts not being filled.
The Annual report does not give a
clear indication of the state of finances and other troubling lapses in
corporate governance in respect of various state owned entities, such as
Sentech, SABC and ICASA. However, during the presentation the Department
indicated that the Minister instituted a Turn-Around Task Team for both Sentech
and the SABC.
6. The
First Quarter Expenditure Report for Financial Year 2010/11
In the 2010/11 financial year[4],
the Department of Communications was allocated a total budget of R2 470 494 000.00.
The Department pointed out that fruitless
and wasteful expenditure incurred during the 2007/08 financial year is still
recorded under current assets. This expenditure is mainly as the result of
interest charged by Universal Postal Union (UPU) to which the Department
subscribes annually as a member. The interest charged was due to late payment
of membership fees. The interest charged amounts to R520 000. The
Department is in discussion with UPU to reverse the interest, based on the
outcome of a joint review by the parties around the circumstances of the late
payment.
In terms of the Auditor-General’s
report there was irregular expenditure incurred as proper procurement
procedures were not followed. An amount of R8 501 000 was incurred in
the year and R15 701 000 was incurred in previous years, but
identified in the current year. As disclosed by the Department, fruitless and
wasteful expenditure to the amount of R54 000 was incurred due to interest
on the late payment of a Telkom account, cancellation of trips and a duplicate
payment for the same service.
7.
Auditor-General’s Report
The Department of Communications has
obtained a qualified report for the 2009/10 financial year. It incurred
irregular expenditure of R8,5 million in 2009/2010 and R15 million was incurred
in previous years but only identified in 2009/2010.
The Auditor-General Reports on the
Department’s compliance with Laws and Regulations, specifically regarding the
Public Finance Management Act, No.1 of 1999, noted the following non-adherence
to requirements:
·
Contrary to section 38(1)(g) of the PFMA, the accounting
officer did not immediately report the particulars of irregular expenditure
discovered to the National Treasury; and
·
Contrary to the requirements of Treasury Regulation 9.1.1,
the accounting officer did not implement effective, efficient and transparent
processes of financial and risk management to prevent and detect irregular
expenditure.
8.
Consideration of Reports of Committee on Public Accounts
The Department did not appear before the Committee on Public Accounts.
9.
Entities Reporting to the Committee
The Portfolio Committee on
Communications has the following entities reporting to it:
9.1.
South African Post Office
(SAPO)
The South African Post
Office was established in accordance with the Post Office Act (1958) as a
government business enterprise to provide postal and related services to the
South African public. It was granted a mandate to conduct postal services to
Allocated
funds are R383 092 000.00 with expenditure as at 31 March 2010 at
R383 092 000.00.
9.2.
South African
Broadcasting Corporation (SABC)
The South African
Broadcasting Corporation was established in terms of the Broadcasting Act
(1936) as a government enterprise to provide radio and television broadcasting
services to
Allocated
funds are R466 579 000.00 with expenditure as at 31 March 2010 at R466
579 000.00.
The SABC
Board, at the presentation to the Committee of its Annual Strategic Plan and
Budget in March 2010, pointed out that there is no budget allocation for voter
education for 2011 local government elections.
9.3.
Sentech
Sentech Ltd was
established in terms of the Sentech Act (1996) as a common carrier to provide
broadcasting signal distribution for broadcasting licensees. In 2002, Sentech
was licensed through the Telecommunications Amendment Act (2001) to provide
international carrier-to-carrier voice services, as well as multimedia
services. Sentech is viewed as a core provider of wireless broadband in
Allocated
funds are R360 019 000.00 with expenditure as at 31 March 2010 at R264
019 000.00.
9.4.
National Electronic Media
Institute of
NEMISA was established as
a non-profit organization in terms of the Companies Act (1973). It provides
much needed skills training at an advanced level for the broadcasting industry.
It is accredited by the Council for Higher Education and offers diploma
courses, short courses and internships in three subjects: TV production, radio
production and creative multimedia.
Allocated
funds are R29 059 000.00 with expenditure as at 31 March 2010 at R29
059 000.00.
9.5.
Universal Services and
Access Agency of
USAASA was established in
terms of Section 58 of the Telecommunications Act (1996). The main role of the
agency is to promote universal service and access to communications
technologies and services for all South Africans. It also facilitates and
offers guidance on evaluating, monitoring and implementing programmes, which
propose to improve universal access and service.
Allocated
funds are R33 495 000.00 with expenditure as at 31 March 2010 at R33
495 000.00.
9.6.
Independent
Communications Authority of
ICASA is responsible for
regulating the telecommunications and broadcasting sectors in the public
interest so as to ensure affordable services of a high quality for all South
Africans. In addition, ICASA also issues licenses to telecommunications and
broadcasting service providers; enforces compliance with rules and regulations;
protects consumers from unfair business practices and poor quality services;
hears and decides on disputes and complaints brought against licensees; and
manages the effective use of radio frequency spectrum.
Allocated
funds are R269 607 000.00 with expenditure as at 31 March 2010 at R269
607 000.00.
9.7.
.za Domain Name Authority
(.zaDNA)
The .za Domain Name
Authority (.zaDNA) was established to assume responsibility for the .za Domain
Name Space. The .zaDNA was established
in terms of Chapter 10 of the Electronic Communications and Transactions Act
(ECT), 2002. The Department currently provides funding for the .zaDNA until the
Authority is fully operational. Funding will then be sourced through a funding
model developed in accordance with section 66(3) of the ECT. The .zaDNA will
also oversee the implementation of an alternative dispute resolution
mechanism.
Allocated
funds are R1 500 000.00 with expenditure as at 31 March 2010 at R1
500 000.00.
10.
Millennium Development Goals: Progress by Department
The following are the observations
regarding the Department’s progress on furtherance of the Millennium
Development Goals:
11.
Findings of the Committee
The Committee analysed the
Department’s 2010-2014 Strategic Plan; the 2009/10 Annual Report of the
Department of Communications; the 2009/10 and 2010/11 Estimates of National
Expenditure; Expenditure Reports and information on programmes of the
Department.
The Committee is gravely concerned
that for the better part of the current financial year, the Department was in a
state of virtual disarray, if not, wholly dysfunctional. This, in part, is characterized by the large
number of vacancies, particularly at senior management level; the current low
level of spending on operational programmes; the poor staff morale; the
financial and corporate governance challenges confronting the Department and
public entities such as the SABC and Sentech; and the absence of effective
leadership at managerial level. However, the Committee has noted with some
satisfaction the efforts made more recently to stabilise the operations of the
Department and to fast-track specific policy development initiatives and
operational programmes identified in the Strategic Plan of the Department.
12. Recommendations
of the Committee in respect of the Department
The Committee recommends that the Department:
Report to be considered.
Portfolio Committee on Communications RECOMMENDATION REPORT ON THE GOVERNMENT
COMMUNICATION AND INFORMATION SYSTEMS Chairperson: Mr I Vadi, MP |
Recommendation Report of the Portfolio
Committee on Communications on the Government Communication and Information
Systems, dated 20 October 2010
The Portfolio Committee on
Communications, having assessed the performance of the Minister in the
Presidency: Performance Monitoring, Evaluation and Administration - Department:
Government Communication and Information Systems (GCIS), reports as follows:
1.
Introduction
Mandate
of the Committee, including provision of Section 5 of the Money Bills Amendment
Procedures and Related Matters Act, No. 9 of
2009.
According to Section 5 of the Money
Bills Amendment Procedure and related Matters Act, the National Assembly,
through its Committees, must annually assess the performance of each national
department. The Committee must submit a Budgetary Review and Recommendation Report for the
Government Communication and Information Systems for tabling in the National
Assembly.
The Committee considered the Budget
of the GCIS and its entities on 9 March 2010 and 11 March 2010. The Committee
considered the Department’s Annual Report 2009/10 on 12 October 2010.
The Committee analysed the
Department’s 2010-2014 strategic plan; the 2009/10 annual report of the
Department; the 2009/10 and 2010/11 Estimates of National Expenditure,
expenditure reports, information on programmes of the GCIS.
2.
Entities
reporting to the Committee
The Committee has the following
entities reporting to it.
2.1. Government Communication and Information
Systems
Mandate
GCIS is mandated to provide strategic
leadership in government communication, and to develop and coordinate a
communication framework that ensures that the public is informed and has access
to government programmes and policies.
Vision
Government communication that empowers and
encourages citizens to participate in democracy and improve the lives of all.
Lead the strategic communication of
government, ensure coherence of message, and open and extend channels of
communication between government and the people, towards a shared vision.
The aim of GCIS is to provide a comprehensive
communication service on behalf of government to facilitate the involvement of
the majority of South Africans in governance, reconstruction and development,
nation building and reconciliation.
The key objective of GCIS is to
continuously communicate and inform the public on the policies and programmes
of government to improve their lives.
3. Strategic
Priorities and Measurable Objectives of the GCIS
3.1 Measurable
Objectives of the GCIS
4.
GCIS Allocations and
Expenditures 2009/10
The GCIS was allocated
R481 995 000 for the 2009/10 financial year. An additional
R14 785 000 was allocated during the adjustments estimates, resulting
in a total of R496 780 000 in voted funds. The breakdown of the
additional funds is as follows:
·
R11,421 million was rolled over from 2008/09, of which
R4,02 million was for the communication project for the presidential
inauguration and R7,401 million was for outstanding payments for the Energy-Efficiency
Campaign (EEC);
·
R3,214 million was allocated to cover costs related to
a higher-than-budgeted wage increase made by the Minister of Public Service and
Administration;
·
R150 000 was donated by the South African Broadcasting
Corporation (SABC) to fund the annual Government Communicators’ Award Ceremony.
The funds were deposited into the National Revenue Fund (NRF).
Both the IMC and MDDA received
transfer payments from GCIS in 2009/10.
The
GCIS has the following programmes and medium term outputs:
4.1.
Administration
Management and provision
of support services to the department.
Final
allocated funds are R114 334 000.00 with expenditure as at 31 March 2010
at R113 698 000.00.
4.2. Policy and
Research
Conduct
communication research to assess how government informs the public and people’s
communication needs and monitors media coverage of government’s programmes from
a communication perspective.
Final
allocated funds are R21 997 000.00 with expenditure as at 31 March 2010 at
R21 997 000.00.
4.3. Government
and Media Liaison
Coordinate
effective, integrated and comprehensive communication and media liaison
services across government.
Final
allocated funds are R30 744 000.00 with expenditure as at 31 March 2010 at
R30 744 000.00.
4.4. Provincial Coordination and Programme Support
Strengthen the system of
government communications and implement development communication through sound
stakeholder relations and partnerships to ensure that the public is informed
about government policies and programmes to improve their lives.
Final
allocated funds are R56 363 000.00 with expenditure as at 31 March 2010 at
R56 194 000.00.
4.5. Communication
Service Agency
Provide
core communication services to GCIS and other government departments, both
in-house and through outsourcing.
Final
allocated funds are R59 626 000.00 with expenditure as at 31 March 2010 at
R59 066 000.00.
4.6. International Marketing and Media Development
Market
Final
allocated funds are R177 973 000.00 with expenditure as at 31 March 2010
at R177 973 000.00.
4.7. Government
Publication
Create
a communication vehicle that provides the public with information on economic
and other opportunities and how these can be accessed.
Final
allocated funds are R35 743 000.00 with expenditure as at 31 March 2010 at
R35 743 000.00.
5.
Rollovers of the Unspent Funds to the 2010/11 Financial Year
From the allocated budget of R496
780 000, R495 415 000 (99,7%) was spent, resulting in under-spending of R1 365
000 (0,3%). The breakdown of this under-spending was:
·
Earmarked funds of R607 000 consisting of:
o
R438 000 for leases of office accommodation for which
GCIS did not receive invoices from the Department of Public Works;
o
R169 000 for
the clean-up of the first-generation Thusong Service Centres.
·
R198 000 for Thusong Service Centre leases due to
lower-than-anticipated claims for rental expenditure;
·
R317 000 of R7,4 million for the EEC rolled over from
2008/09 to 2009/10;
·
R243 000 for the purchase of capital assets that did
not realise.
5.1
Virements and Shifting of Funds from and to, within and between Programmes
during the Adjustment Period in line with the Legislative Framework (PFMA)
Though section 43 of the Public
Finance Management Act (No 1. of 1999)[5]
makes provision for the virements and shifting of funds from one programme to
the other, as well as movement of funds within the programme, there are certain
requirements that need to be met by an accounting officer. These conditions are
as follows:
Section 43 (2) of the Public Finance
Management Act provides that “the amount of a saving under a main division of a
vote that may be utilised in terms of (1) may not exceed 8 per cent of the
amount appropriated under that main division.”[6]
Moreover section 43 (4) states that this section does not authorise the
utilisation of a saving if:
(a) An amount is specifically and
exclusively appropriated for a purpose mentioned under a main division within a
vote;
(b) An amount appropriated for
transfers to another institutions and; and
(c) An amount appropriated for
capital expenditure to defray current expenditure.
The following virements and
additional budget allocation were approved through the adjustments estimates
process:
·
A net increase of R5, 917 million in the compensation of
employees of which:
o
R3, 214 million was for salary increases following the
Public Service Coordinating Bargaining Council resolution;
o
R2, 942 million from transfers and subsidies for the salary
cost of Communication Resource Centre (CRC) staff transferred from the
International Marketing Council (IMC) to GCIS; and
o
R239 000 was shifted from compensation of employees to
transfers and subsidies (households) due to leave gratification.
·
Goods and services had a net increase of R12, 885 million:
o
R7, 401 million rolled over from 2008/09 for the EEC;
o
R4,02 million rolled over from 2008/09 for the Presidential
inauguration;
o
R150 000 of self-financing expenditure received from
the SABC for the Government Communications Awards, deposited into the NRF; and
o
R483 000 was shifted from goods and services to
payments for capital assets to fund the purchase of capital equipment, while
R1, 797 million was shifted from transfers and subsidies to increase goods and
services for the CRC operational budget, which was transferred from the IMC to
GCIS.
·
Transfers and subsidies decreased by R4,5 million:
o
R4, 739 million was shifted to compensation of employees
(R2, 942 million) and goods and services (R1, 797 million) respectively, to
fund the transfer of the CRC from the IMC to GCIS; and
o
R239 000 was shifted from compensation of employees to
fund payments in respect of leave gratification.
·
The capital budget increased by R483 000 from goods and
services to fund the purchase of capital equipment.
The following virements were
approved by the Accounting Officer and the National Treasury after the
Adjustments Budget:
· A decrease of
R211 000 in compensation of employees as a result of the period that
lapses before vacant posts are filled;
· R211 000 shifted
from compensation of employees to goods and services;
· Most virements were
applied between programmes where under-spending was utilised to fund shortfalls
in other programmes, such as an increase of R2, 294 million in the Government
Publication due to the increase of the print run and distribution of the March
2010 edition of Vuk’uzenzele magazine; and
· Policy and Research was
also increased by R2, 969 million, mainly to fund the research and development
of a communication training programme together with the Public Administration
Leadership and
6. First
Quarter Expenditure Report for Financial Year 2010/11
The GCIS was allocated
R481 995 000 for the 2009/10 financial year. An additional
R14 785 000 was allocated during the adjustments estimates, resulting
in a total of R496 780 000 in voted funds.
GCIS received a clean audit from the
Auditor-General’s office.
A point of concern raised by Committee is the
non-allocation of a budget for the MDDA for 2012/13 in the Estimates of
National Expenditure 2010 Budget published by the Minister of Finance.
7. Analysis
of the Annual Reports and Financial Statements of the Department
7.1 Programme 1: Administration: Under-spending mainly due to outstanding invoices from DPW in respect
of leases of Office Accommodation. R16,5 million was also allocated for a new
Head Office building. The project is in process - a portion of the tunds will
be spend during the 3rd and 4th quarters of the financial year. The majority of
the funds will be rolled to the next financial year.
7.2 Programme 3: Government &
Media Liaison: Under-spending
mainly due to less travelling and international trips. Expenditure in respect
of the Government Communicators Awards will incur during the 4th quarter of the
financial year.
7.3 Programme 4: Provincial Coordination
and Programme Support: Under-spending
mainly due to allocation of R5 million in respect of the clean-up of the 1st
Generation Thusong Service Centres. A project plan is in place and expenditure
will incur during the 3rd and 4th quarters of the financial year.
7.4 Programme 6: IMC & MDDA: The total transfer payment of R17,3 million was made to the MDDA in
April 2010. Quarterly transfers totaling R99,8 million was made to the IMC
during May 2010 and July 2010.
7.5 Programme 7: Government
Publication: Printing
and distribution of the Vuk'uzenzele Magazine is every 2 months with an
additional edition in March 2011 in respect of SONA.
7.6 Proramme 8: Communication Resource
Centre: Under-spending mainly due to lesser
travelling expenditure since transferred from the IMC.
8.
Consideration of Reports of Committee on Public Accounts
The Department did not appear before the Committee on Public Accounts.
9.
Millennium Development Goals: Progress by Department
The following observations regarding
the Department’s progress with regards to furtherance of the achievement of the
Millennium Development Goals:
10. Recommendations
of the Committee in respect of the Department
The Committee welcomed the fact that
for yet another year the Auditor-General gave a favorable review for GCIS.
Furthermore, it is satisfied that most of the goals and objectives of the GCIS have
been implemented.
Report to be noted.