The Committee believes that capital projects are the backbones of job creation which is part of policy priorities. However, the Committee remains concerned that the unspent funds amounted to R12.4 billion which was budgeted for capital projects in 2009/10 financial year. The Committee has noted, nonetheless, the new approach adopted by government which seeks to address weaknesses in budgeting and planning in such projects. The Committee identified a number of weaknesses and challenges in the area of procurement and supply chain management, and has since made recommendations in regards to this. Therefore, the interdepartmental team and proposed scrutiny of non governmental agencies and other accounts which is informed by these findings is one step in the right direction. In support of the job creation process, the Committee believes that such areas in government need to be monitored and evaluated since these are the key drivers of the capital projects procurement. The delays and termination of tenders due to irregularities is completely unacceptable as it hampers the levels of job creation and service delivery. The Department of Water Affairs reported that to date it has created about 26 331 job opportunities through the Working for Water Programme. While the Departmental budget has been adjusted from R7.9 billion to R8.2 billion the Department has only spent 37. 7 per cent in the first six months, part of the adjustment was R35.6 million received from other adjustments. The Committee was concerned about the level of virements and shiftings of 36.7 per cent which exceeded the 8 per cent permitted by the Public Finance Management Act. As provided for in the PFMA, virements exceeding this threshold have to be approved by Parliament. Failure to attain Parliamentary approval will lead to the Auditor General reporting this as an unauthorised expenditure. The Department has reported an under expenditure in the first six months of 37.7 per cent. The Department of Water Affairs indicated that the under expenditure was due to the late submission of invoices by the Department of Public Works (DPW), unspent funds of Change Journey and Master Systems Plan (MSP), unspent funds allocated to replace Masibambane, regional bulk infrastructure: legal issues around Nandoni Dam project, delay in signing of Memorandum of Agreement by Municipalities, delay in submission of invoices by service providers.