I now call the hon the chairperson of the Standing Committee on Appropriations, Mr Sogoni.
Chairperson, the executive, colleagues and members of the Standing Committee on Appropriations, the democratic government has since 1999 adopted the Medium-Term Expenditure Framework, the MTEF, a three-year tool of budgeting that allows for proper planning, certainty and predictability. That means that every department knows more or less how much they will receive the next financial year or two years later.
The Division of Revenue in 2008 enjoined every department to start planning their infrastructure projects for the following year by June to avoid any kind of delay in implementation. Many departments heeded the call, although some struggled to comply.
On the occasion of the opening of Parliament, the President made a clarion call on all departments. He said: "Government will have to act prudently - no wastage, no rollovers of funds - every cent must be spent wisely and fruitfully."
However, the analysis of the expenditure of the fourth quarter report of 2008-09 reveals that the former Department of Water Affairs and Forestry, as it was called then, underspent by R505 million - that is 7,7% of their budget. Of that amount, R250 million had already been rolled over twice, thus being in contravention of section 6(4)(3) of the Treasury regulations which prohibits that practice. In other words, they can only do this on the basis of approval by National Treasury. We did not see that that was done.
We also noted that the Department of Labour underspent by R73 million owing to a number of vacant inspector posts, inspectors who are critical to the work that the department does in monitoring all kinds of compliance by employers. The reason for these vacancies was attributed to low salaries paid by the department.
The Standing Committee on Appropriations feels that the department cannot afford to do without labour inspectors. They are central in protecting vulnerable workers who are not unionised.
We also noted that Home Affairs did not spend the R110 million that was mentioned earlier. However, the Deputy Minister did respond to this.
However, the standing committee is of the view that it will, in collaboration with the Portfolio Committee on Home Affairs, invite the State Information Technology Agency, Sita, in order to resolve this matter. Another instance of underspending was by the Department of Health as a result of the withholding of funds, because the Western Cape delayed the issuing of the tender for the building of the hospital in Khayelitsha, thus depriving the people of Khayelitsha access to health care.
Also, the Department of Agriculture could not spend R60 million on a project called Ilima, because they had not finalised service level agreements with the Development Bank of Southern Africa that was identified to carry out the project. This project was meant to promote security for the poorest of the poor. So, the poor were, again, deprived as a result of the inefficiency of officials. Clearly, Parliament can protect the poor through tighter oversight and accountability.
The Department of Transport experienced overspending in a programme dealing with bus subsidies, because they did not have sufficient funds. The committee was informed that this matter was being resolved or discussed with the department and National Treasury by clarifying policies on subsidies.
All these matters need to be resolved sooner rather than later because the poor are always the victims. Parliament has thus a duty to protect the poor.
We will not create the 500 000 jobs unless the departments charged with their responsibility to do capital expenditure, start spending appropriately. Thank you very much. [Time expired.] [Applause.]
There was no debate.
I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.