Hon Speaker and hon members, the Portfolio Committee on Mineral Resources has considered the 2010-11 financial performance of the Department of Mineral Resources and assessed the implementation of its strategic priorities and measurable objectives.
We note that the split of the former Department of Minerals and Energy into two stand-alone entities has meant that the new Department of Mineral Resources is now able to focus squarely on mining and the minerals industry.
Parliament appropriated R1,030 billion during the 2010-11 financial year from the fiscus. The department, in turn, allocated these funds to its four main programmes. Programme 1: Administration received R239 million. Programme 2: Promotion of mine, health and safety received R145,1 million. Programme 3: Mineral regulation received R215,9 million, and Programme 4: Mineral policy and promotion received R429,2 million.
The Portfolio Committee on Mineral Resources is satisfied with the manner in which the department has disbursed these available funds. We have noted the overall underexpenditure of R1,2 million which represents 1,2% of the total budget allocated to the Department of Mineral Resources.
The department received a qualified audit opinion for the 2010-11 financial year, the second in succession. The basis for this qualification includes the lack of compliance with section 38 of the Public Finance Management Act in that the receivables of the departmental revenue amounting to R72,2 million were misstated.
There is an irregular expenditure of R7,2 million which is awaiting condonation through the approved process within the department.
We therefore recommend that the department should, among other measures, firstly strive for an unqualified audit opinion in the 2011-12 financial year. Secondly, it should implement its action plan aimed at addressing the concerns raised by the Auditor-General. Thirdly, it should quantify government liability with regard to the rehabilitation of derelict and ownerless mines. Lastly, it should fast-track the establishment of the compliance unit as contained in its strategic plan.
Hon Speaker, we therefore table this report for the consideration of the House. Thank you. [Applause.]
There was no debate.
Hon Speaker, I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.