Department Budget 2002/3: briefing

Mr Sokutu said that in order to meet the challenges of the building programme, client departments had to plan ahead and have their priorities correct.

They had underspent by almost R605 million in the 2000/1 financial year. This he termed a "minor rollover" when compared to the 2000/1 budget of R3.7 billion. He said that they had inherited lack of capacity from the previous dispensation.

In their Public Works Programme they have managed to create 24 000 temporary jobs, R10 million went to women, another R10 million went to the youth and R2 million to the disabled.

He concluded by mentioning the fact that the department had uncovered about eleven cases of fraud.

Discussion
The Chairperson thanked the Director General for the presentation. He said he did agree that much improvement has been achieved - more especially on underspending.

Mr B (ANC) Radebe commended the department for the work done. He said that it was disheartening when Parliament allocates funds for poverty alleviation but the money is not spent.

Mr S Opperman (DP) agreed with Radebe that he see no point in stopping a project because some assessment is still being undertaken. He wanted to know what the department is doing about HIV/AIDS and the effectiveness of the programmes to recipient communities.

Mr J Schippers (NNP) said R 811 million has been spent on local authorities but he had a disturbing report about a Jansenville Municipality which has not been paid by the department. He had contacted a departmental official, Gugu Masemoka, in relation to this issue. He further said that there are rumours about a police station which is supposed to be built, tenders were closed in March but construction will only begin in August. He also wanted to know what had happened to the officials in the eleven cases of fraud. Mr Schippers mentioned his recent visit to the North West where government buildings are standing empty and are being vandalised. In conclusion he wanted to know who is responsible for the education of client departments.

In his reply, Mr Sokutu made the following points:
- The education of client departments is their responsibility but they are encouraging them to employ at least one person who is knowledgeable in property management.

- They have about R10 million allocated to set up building structures for HIV positive people and orphans.
- The capital works programmes are having a positive impact and projects are only closed down when they do not meet the requirements.
- Their priority is to pay in time but he will make a follow up on the Janseville problem and sometimes local authorities do make mistakes.
- The postponement of building programs is not done by their department but by client departments.
- On the fraud issue, people have either been charged or dismissed.
- The protection of the North West military base has been a difficult problem because it is still owned by the SANDF. A certain municipality has actually occupied the base without the necessary permission.

Mr Radebe asked with regard to the allocation of R304 million for personnel, he wanted to know how much is allocated for the training of middle management.

Mr Opperman said the department must liase with the SANDF in relation to the military base.

The Director General said the SANDF need only to write to them about the situation at the base.

The Chairperson wanted to know what is going to happen to equipment at the base.

Mr Sokutu said the equipment is the responsibility of the SANDF unless they tell them otherwise.

Mr N Middleton asked who is the Department's biggest client and is it true that their clients are not paying rent.

Mr Sokutu said it is largely not the client's fault for not paying rent but a fault of the system and they are moving to a situation where this is going to be rectified. He noted that their biggest clients are those that are leasing the properties. He said they had spent a lot on capacity building training.

Mr Opperman wanted to know what had happened to the saving of R34 million.

The Director General said it went back to the National Treasury.

The Chairperson asked whether it would be correct to assume that all national departments are their clients.

Mr Sokutu said this was not the case, for instance, the DTI is organising its own accommodation.

The meeting was adjourned.