. Procurement details were missing or not addressed to the satisfaction of the Committee. This was the case with a number of CEF subsidiaries and affiliates which made presentations. . The Committee expressed disappointment with the CEF's Chief Executive Officers conduct during the entire oversight visit. It was felt that the CEO acted untowardly by choosing not be a part of the CEF officials without giving reasons for his absence. . Staff turnover levels seemed to be alarmingly high and the Committee raised concern relating to the number of managers in acting capacity and whether that did not affect efficiency. CEF informed the committee that the matter was discussed at EXCO and at the CEF strategy session. It was agreed that EXCO will view the staff resignations as right sizing as there is a number of projects that are halted as a result of the new regulations which disqualified CEF. . Concern was raised over a large number of projects that were terminated after investing substantial amount of resources. CEF requested to clarify its strategy regarding its taking of decisions to embark on projects and how they conduct their feasibility studies. . There is inadequate methane gas supply at PetroSA, which has resulted ina potential going concern challenge with Methcap in which CEF holds a 19% interest (Capital investment by CEF is R1,4m). It will probably take 12 to 24 months for all the the digesters to be recommissioned. . SoE's do not have the necessary funds earmarked for Energy Efficiency Programmes and thus require support. CEF is awaiting concurrence from the Minister of Public Works on their proposal submitted via the Minister of Energy. . With regard to PetroSA's BBBEE procurement, (for the period under review) payments made to suppliers for goods and services totalled R7,38 billion. Of these payments, R1,36b was spent on black economic empowered (BEE) suppliers with a minimum of 25,1 per cent black ownership, while R2,99 billion was spent on suppliers with BBBEE contribution level of 1-8. This equates to 18,52 per cent and 40,52 per cent respectively of the company's total procurement spent. Under the BBBEE Codes of Good Practice, certain expenditure may be excluded from total procurement, that is, from other organs of state, imported goods and services that cannot be sourced locally, as well as specific branded sole-source procurement. The total procurement expenditure from organs of state, sole source suppliers and foreign entities was R4, 82 billion. . The information shared concerning the Darling wind power project was far from convincing. A detailed report on the community trust was needed, with reasons for the delays and lack of communication. Furthermore DBSA was to be requested to submit a report on the project to the Committee. . With regard to the fraud and corruption, the CEF has spent R3,3 million in investigation and legal fees. Where CEF receives whistleblowers reports the matters is considered and necessary investigation is undertaken with the board approval. In the last two years there was allegations made and investigations undertaken. In most instances the investigations have identified lapses in processes, controls and exceeding limits of authority. The nature of irregularity (exceeding limits) have been quantified and disclosed in the Annual Financial Statements. . CEF currently has 14 direct subsidiaries and they are currently exploring the option to rationalise the Group where there are synergies. It is expected that this rationalisation programme will take about 2 years. . Of the total CEF budget, 62 per cent is spent on Research and Development. . The Committee was concerned about where and how CEF will get the E30 million investment for the Johanna Solar and Thin Film Solar Technologies Project. . An explanation was also sought as to how CEF decides to get involved in certain investment, some which are very risky and costly.