Hon Deputy Speaker, regarding the statement on the fourth quarter expenditure patterns for the 2011-12 financial year, public spending must fight poverty. It must reduce unemployment and narrow the divide of inequality. The ANC believes that public spending needs to be placed under very close scrutiny because it is the means by which the aspirations of the Freedom Charter, the Constitution of the Republic of South Africa, and successive ANC conference resolutions can be realised. In other words, one can say that public spending is a lever of power and a pillar of the struggle against poverty, inequality, and unemployment. The ANC notes that our recent interactions with national government departments revealed a declining performance in spending patterns. The overall expenditure at the end of the fourth quarter declined from 98,56% in 2009-10 to 97,7% in 2011-12. Overall, it became evident that there is a negative relationship between the increased budget allocations and overall expenditure. The picture of underspending gets worse on closer scrutiny because one then realises that some departments have significant levels of overexpenditure in a few areas. This suggests a lack of consistent expenditure management, monitoring, and tracking. The ANC is concerned with this pattern because of its potential to undermine the delivery of basic services. We are particularly agitated because we know that some amongst us are known for agitating communities in order for them to undertake fact- finding missions, after which they return to their comfort zones.
The ANC regards the underspending as a serious problem that has to be addressed, as outlined in the recommendations of the report. The ANC is perturbed that the major contributing departments include departments that are charged with the responsibility of overseeing the implementation of government's priority programmes. In this regard, we wish to see that there are credible plans in place, and that there are better systems of expenditure monitoring, especially in the departments such as Basic Education, Social Development, Police, Water Affairs and National Treasury.
In conclusion, the ANC would like to see speedy implementation of its recommendations by the executive authorities and accounting officers of all departments affected by both underspending and overexpending. The ANC calls on all sectors of society to dedicate maximum efforts to liberate budget appropriations to deal progressively with the triple scourge of poverty, inequality, and unemployment.
Hon Deputy Speaker, may I deal with the Eastern Cape one now?
Yes.
The ANC notes with concern the persistent challenges facing the Eastern Cape province. It notes with concern that the visit to the Eastern Cape province revealed persistent challenges which characterise the delivery of services critical for a developmental state.
We are concerned that health and education, in particular, experience problems in provinces such as the Eastern Cape, where the apartheid legacies of poverty, unemployment, and inequality are highly visible. In expressing this concern, we are guided by the realisation that continued failure to address the challenges of health and education in the Eastern Cape province has the huge potential of undermining the developmental aspirations that the ANC has set for these priority areas of the current political administration.
In education, for instance, Accelerated Schools Infrastructure Development Initiative, Asidi, targets are being missed and available funds underspent. We are perturbed that, despite our best efforts to speed up the work of addressing backlogs, which were caused by apartheid, the Eastern Cape province does not seem to make maximum use of sizeable appropriations meant for this purpose.
During our visit we have learned, with disappointment, that - almost halfway through the 2011-12 financial year - 28 of the 49 schools, that is 57%, had recorded progress of between 10% and 40%. These are schools that were earmarked for infrastructure improvements under the Accelerated Schools Infrastructure Development Initiative, for which R8,2 billion has been allocated over the Medium-Term Expenditure Framework, MTEF, period.
Even more alarming is the fact that almost halfway into the current financial year, no contractors had been appointed to make the targets for the next round of 50 schools. There is a general lack of accountability, proper financial management, and a failure to plan, which affects the delivery of crucial learning support programmes, such as the school nutrition and learner support programmes.
With regard to the strategic plan of the National Youth Development Agency, NYDA, the ANC knows that the intentions, aspirations, and plans contained in the strategic plan and the budget of the NYDA address critical challenges that face the youth. Among these challenges are unemployment and related poverty, health awareness and wellbeing, substance abuse, access to education opportunities, and community service orientation, to mention but a few. We note the role that the NYDA plans to play in contributing to the realisation of the ANC's priorities, which include job creation, poverty alleviation, health, and education.
The NYDA plans to create 170 000 job opportunities by either assisting the youth to start new businesses or helping them to grow established businesses, amongst others. This represents an average figure of 24 000 opportunities per year. Furthermore, the plan to place 24 050 young people in education opportunities within five years needs to be applauded, as this is an area which requires various initiatives to supplement the laudable support that is given by the two Education Ministries.
We also note with appreciation that the plan intends to spread awareness on health issues. This includes the dangers of substance abuse, sexually transmitted diseases, and HIV/Aids. The ANC will monitor progress with the implementation of these plans, but the ANC is not a watchdog party that visits when there are perceived challenges. The ANC will engage directly with the NYDA as part of monitoring.
The ANC notes that there are five key challenges among those facing the NYDA, which require urgent attention if the NYDA is to succeed in making a significant impact on the development of youth.
Firstly, there is a need to think more creatively to improve the rate at which loans are recouped. Secondly, the NYDA needs to step up its communications strategy, so that the typically negative narrative of the DA and its newfound cronies is seen for what it is: grandstanding. Thirdly, the NYDA must improve its visibility and service delivery in rural areas. Fourthly, improvements need to be made in the area of integration and communication between national and provincial structures. Lastly, the ANC would like to see the youth engaging more in dialogues on issues that affect them, at all levels, including the local government sphere.
In conclusion, the ANC is convinced that more can be achieved by the NYDA if every effort is made to ensure that healthy levels of balance are kept with regard to expenditure on salaries and the core mandate of youth development.
The ANC reiterates its 52nd conference call on the private sector to commit funds to dedicated and long-term programmes linked to the development of the youth of South Africa. The ANC would like to see a seamless integration, sustainability, and responsiveness to the demands and aspirations of South Africa's youth. The NYDA, which is a creature of the ANC's 52nd conference resolution number 105, must assist us to realise these aspirations. I thank you. [Applause.]
There was no debate.
On behalf of the Chief Whip of the Majority Party, I move -
That the Reports be adopted.
Motion agreed to.
Report on Fourth Quarter Expenditure Patterns for 2011-12 financial year accordingly adopted.
Report on Follow-Up Oversight visit to Eastern Cape Province from 30 July to 3 August 2012 accordingly adopted.