The Committee was informed that the nature of operations within the Department was such that the Supply Chain Management and the Finance Offices were not involved in the preparation of specifications. In a normal environment, the options analysis prior to the procurement of goods or services is done by the engineers and the Finance Office in order to come up with the most efficient options that deliver effectively. At the time of the visit, the Committee was informed that both specifications and options analysis were done solely by the engineers. Moreover, the Department did not have a Bid Specification Committee. It was also reported that where an amount of R1 billion or more was being spent on capital projects, there ought to be a capital expenditure committee. It emerged that the Department was operating without a functional Capital Expenditure (CAPEX) Committee which is supposed to take major financial decisions. The Committee was further informed that these were amongst the reasons which contributed to the Department receiving a disclaimer in the Auditor-General's report.