Hon Deputy Chairperson, hon members and fellow South Africans, it is my honour and privilege to make few remarks as I table before this House the report on the Eastern Cape Early Childhood Development Grant Expenditure on behalf of the Select Committee on Appropriations.
Having conducted hearings on 16th May and 15th August 2018, on the Early Childhood Development Grant Expenditure by the Eastern Cape Department of Social Development, the committee had a follow-up
engagement with the province on 13th February 2019 which main focus was to assess the progress report and expenditure for the third quarter of 2018- 2019 financial year.
Having considered submissions made by the national Department of Social Development, the Eastern Cape provincial Department of Social Development and the National Treasury, the committee observed and noted the following: even though the allocation of the maintenance components is expected to increase each year, the committee noted the reduction of the maintenance components of the grant from R12 million to R3,3 million for the financial year 2018-2019.
The committee welcomed the approval of the National Integrated Early Childhood Development Policy in 2015 by the Cabinet to broaden access o the service, especially for the less privileged children. This is an indication that we are a caring government indeed.
The committee was concerned with the poor expenditure trends for the period under review which were significantly below the 25% expenditure benchmark as in the expenditure of 0% for the maintenance components that suddenly increase to 30% at the end of the third quarter.
The expenditure of 23% for the subsidy component in the second quarter has suddenly increased to 66% at the end of the third quarter, the expenditure of 22% for administration at the end of the third quarter.
The committee also observed the following challenges which contributed to the delays in the grant expenditure, late signing of service level agreements between provincial department and ECD centres, delays in the supply chain management processes for the appointment of contractors, because some projects were experiencing delays due to lack of connections for services such as water and sanitations, noncompliance with the conditional grant framework on the implementation of 264 days.
The committee raised concerns about the R22, 6 million in the ECD grant funds which was rendered by the province after a rollover of R6,3 million was approved. The committee observed the slow progress in the maintenance components of the grant in which 26 projects were set for completion by 31 March 2019 and only nine of these were completed by February 2019.
The committee was concerned about the visibility of completing all remaining projects within one month and whether this was not going to amount to fiscal dumping.
The committee noted the support provided by the national department which continues to monitor the implementation of the project and the resultant improvement in performance from 0% to the projected 61% after the intervention by the national department.
The committee made the following recommendations: given the year on year increase of the maintenance components allocations, the committee recommends that the increase should be properly managed and be aligned to a realistic annual performance targets which are clearly defined, achievable and time bound. The Eastern Cape Provincial Legislature and the NCOP should monitor progress in this regard.
The National and Provincial Departments of Social Development should ensure the implementation of the National Integrated early Childhood Development Policy and the provincial legislature and NCOP should monitor progress.
The National Department of Social Development together with the provincial department should develop an exit strategy for a smooth hand over of the provincial departments once the intervention comes to an end, so that the provincial department can continue to maintain the same level of improvements.
The national department and provincial department should ensure the improvement grant expenditure and performance on quarterly basis in order to avoid fiscal dumping or surrendering of funds at the end of the financial year.
The national department together with the provincial department should ensure the following challenges are resolved: delays in signing service level agreements with the centres, delays in the supply chain management processes that delay the appointment of contractors, project s delays due to lack of connections for services such water and sanitations.
The national department together with its counter part in the province should ensure that completion of the 8th outstanding maintenance projects without incurring fiscal dumping or wasteful and fruitless expenditure.
Even though the national Department of Social Development is monitoring the intervention and supporting it, the provincial legislature and the NCOP should follow-up on this matter until there is 100% expenditure with the total achievement of planned targets. I tabled this report for consideration by this House. I thank you.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance of section 65 of the Constitution
Hon members I have been receiving a lot of nukes and of course I concurred with the Chair that we take a break and come back after 45 minutes.