... to develop entrepreneurship among the young people and to assist them in starting their own businesses. If this is indeed the case, the Minister will find the DA to be an ardent supporter of the programmes. However, we do have a valid cause for our doubts on this commitment from the Minister. Only if the interventions are aligned to the NDP are they likely to succeed in creating an environment wherein it is easier, cheaper, and faster for small businesses to set up, grow, and create employment opportunities.
While the department maintained an unqualified audit opinion for 2011-12 financial year, the Auditor-General was not happy with the department's performance on several important fronts. I will just highlight one. With regard to reliability of information, the Auditor-General, AG, found that a total of 47% of the actual reported performance relevant to the selected programmes was not valid, accurate and complete when compared to the source information. This was due to lack of monitoring, review, standard operating procedures and information system for the recording of actual achievements by senior management.
We hope that the Minister will ensure that this and other concerns by the AG are rectified and will not recur in the AG's annual report this year.
Minister, I would now like to turn to one of the problematic entities in your portfolio - the Compensation Fund, the CF. You have referred to it yourself. Earlier in the year, we were appalled by the dismal performance of the Compensation Fund we requested that you put the entity under the administration of Treasury. Thank you for responding to my request, Minister.
In denying my proposal, you indicated that you have recently initiated an action plan to address the core of my concerns and that you were confident that the plan was capable of delivering the desired results within a very short space of time. Minister, we do not feel as confident as you do that things will improve soon at the fund. I believe you need to personally intervene if you are not to be disappointed, and I am glad the Chair of the committee has made that point. I believe that you will be disappointed if you do not intervene.
The DA is convinced that things will continue to deteriorate at the fund until the information technology, IT, system has been modernised and the place is staffed with appropriately qualified officials, particularly in the financial section. [Applause.] Furthermore, during the 2011-12 financial year, the compensation fund logged R 12,9 million in fruitless and wasteful expenditure. Minister, you and the Chair referred to it.
A quick calculation shows that the department could have employed 65 highly needed specialist labour inspectors at a salary of R200 000 per year and for a year, with money wasted purely because certain officials did not or cannot do their jobs. The department cannot afford to keep such people. Scores of frustrated people who were angered by the department's poor or lack of services at the Compensation Fund turned to the DA for help, out of desperation.
The DA has now employed a full-time staffer, Ms Gaynor Lucas - and I want to thank you, young lady, if you are up there - who assists me and my colleague, hon van der Westhuizen, to field and facilitate labour-related complaints, mostly concerning the Compensation Fund. This is a service our office would not have to provide if the Compensation Fund was doing its job.
Minister, I would like to draw your attention to certain concerns regarding labour centres. In Gauteng, the Sebokeng Labour Centre was closed earlier this year, allegedly for not paying the rent. [Time expired.] Thank you. [Applause.]