The Department had spent R165 million (47.07 per cent) of its budget at the end of the first quarter. An amount of R140.8 million (93.66 per cent) was spent on Energy and Broadband Enterprises programme. This was influenced by a R138.6 million (100 per cent) transfer to Broadband Infraco for the national long distance fibre optic network. The high level of spending by the Department was mainly due to this transfer. The Department had under- spent in the majority of its programmes. It spent less than 18 per cent in five programmes. The Administration programme was allocated R101.3 million but spent R17.9 million (17.64 per cent). The Legal, Governance and Transactions programme received R54.4 million but spent R1.2 million (2.19 per cent) while the Manufacturing Enterprises programme received R16.2 million but spent R1.1 million (6.63 per cent) of its budget. An amount of R36 million was allocated to Alexor for the funding the shortfall in respect of the Alexander Bay township development programme but no funds had been transferred at the end of the first quarter. The Department indicated that the following factors resulted in its slow spending: