Limpopo Provincial Treasury Presentation to the NCOP 06

Limpopo Provincial Treasury Presentation to the NCOP 06 November 2007 1

Table of Contents • Conditional Grants spending as at 30 September 2007 • Observations on Conditional Grants • Infrastructure spending as at 30 September 2007 • Observations Infrastructure Spending • Reasons for under spending 2

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Observations • There is no improvement on conditional grants spending when comparing 2006/07 & 2007/08 as departments spent the same % (38%). • The following conditional grants are a cause for concern `cause the spending is even less than 42% (the norm for August). • Education – HIV & AIDS – FET – NSNP 16% 33% 34% – Integrated Housing 22% • Housing 4

Observations cont. • Sport – Mass Sports – Library Services 18% 5% • Agriculture – CASP – Land Care – IGP 12% 6% 1% • Health – NTSG 34% 5

Capital Spending 6

Observations on Capital spending • The overall capital spending is low at 27, 7% • Poor spending patterns demonstrated by Departments of : – Agriculture – Health – Transport – Housing 11% 38% 20% 23% 7

Monitoring Capacity • The Provincial Treasury is constantly supporting departments in implementing the business plans by having bilaterals. • Monitoring of monthly reports and reporting on the shortcomings on spending • Assisting departments to recruit skilled and capable staff • Compliance is adhered to by submitting monthly reports (IYM) 8

Reasons for under spending by departments • Agriculture – CASP • Poor planning and late appointment of service providers. – LAND CARE • Claims from communities have not been submitted to finance for capturing due to challenges within the co-operatives. – IGP • Late approval of MERECAS policy and indecision about fresh produce market. 9

Reasons for under spending by departments • Housing – IHSRP • Late announcement of subsidy quantum leading to delay in contracting developers • Education – NSNP • The Public Sector strike in June affected the feeding scheme 10

Reasons for under spending by departments • Education – HIV/AIDS • Spending is on track, except that capturing of invoices was delayed hence IYM shows low percentage – FET • Spending is on track, except that capturing of invoices was delayed hence IYM shows low percentage 11

Reasons for under spending by departments • Sport – Mass sport • SMME’s lack of capacity to deliver when appointed as service providers at times deliver wrong equipment. – Libraries • New Conditional Grant, planning posed a big challenge and delays in the procurement processes. 12

Reasons for under spending by departments • Health – Forensic pathology • Delay in the appointment of Forensic Pathology Services staff. Posts have already been advertised and will be filled in the third quarter – HPTD • The underspending in the first 6 months is due to the fact that training has been scheduled for the third quarter – NTSG • The procurement process of equipment is complex and slow due to aspects of the type of tender Equipment has been procured overseas and delivery is expected during the third quarter – Hospital Revitalization • The overall underspending due to some of the contractors not able to fully operate during industrial action during June month 13

END THANK YOU 14