Western Cape Adjustments Appropriation Bill: Department of Social Development

Meeting report

The Chairperson welcomed everyone to the deliberations on the Western Cape Adjustments Appropriations Bill (B6-2019). He invited brief remarks on the Bill from the Department.

Briefing by the Department

Dr Robert MacDonald, HOD, Western Cape Department of Social Development, highlighted that minor adjustments were made to the Adjustments Appropriations Bill. The net effect of the adjustments on the baseline was a decrease of R3 million. R5.1 million was returned to Treasury with a request that the funds be retained for next year- the reason being that the Department had taken over the Horizon and Clanwilliam Child & Youth Care Centre from BOSASA. Since liquidation of said company, the Department had to deal with a R15 million budget shortfall. R1.8 million was rolled over by the Department for a procurement process that is underway for specialised vehicles that will be used for transportation of disabled children and learners. This had taken longer than expected because the Department was going to make the procurements initially, but it was then decided to use Transport and Public Works’ contracts as it would be a lot cheaper. Finally, the R311 000 was from revenue that was over collected last year. The Department managed to retain the funds from Treasury and they were to be used to spruce up the secure care facilities taken over from BOSASA.

The Chairperson invited comments and questions from Members.

Discussion

Mr R Mackenzie (DA) sought clarity about programme one (1), provision of machinery and IT refresh. On programme one (2), Corporate Management Services, he wanted more information on the R2.2 million realigned due to changes in training and development classification. On funds reprioritised as a result of delays in the expansion of facilities on programme two (2), what were the reasons for those delays? On programme three (4), Early Childhood Development (ECD) and partial care, has service provision not been affected by the fund reprioritisation from non-compliant NPOs?

Ms R Windvogel (ANC) said given the social development challenges within the province, one would have expected additional funding for social welfare programmes. The reductions were really unacceptable. On programme two (3), funds reprioritised as a result of late expansion of facilities; was it correct to say money intended for expansion of facilities used by people with disabilities was being used for IT refresh? On underspending due to staff exits, how many individuals had left the employ of the Department and what were the reasons for their exit? On Child & Youth Care Centres, what were the reasons for the allocation reductions? The reduction in budget for victim empowerment sends the message that government does not really care about the plight of women. What were the reasons for the reduction?

Ms N Bakubaku-Vos (ANC) asked about the decreases in allocation for social welfare services. She wanted to know about its impact on service delivery. Given the increase in cases of gender-based violence within the province, one would have expected increased allocations towards victim empowerment programs. What was the Department’s plan in the fight against gender-based violence and femicide, and where was the budget for this? What was the logic of using crime prevention money to settle audit fees? On ECD and partial care, what were the reasons for budget reductions and how will it impact the functioning of the Department.

Dr McDonald replied that the reduction in budget allocations to social welfare services was essentially due to the balancing acts the Department had to carry out from the baseline allocation. There were cases of non-compliant NGOs with funding agreements that were not able to submit performance and financial reports as per the requirement for all 1000 ECD centres funded by the Department. In such instances, funding had to be suspended following repeated requests by the Department, and investigations are then carried out to ascertain whether they is any misappropriation of funds. This is a common problem in the ECD space, with a number of them grappling with administrative capacity challenges as they do not have access to well-paid financial professionals who could help them with balancing their books. This challenge has been recognised and the Department was trying to help as far as possible- for those NPOs willing to be assisted. At the end of the year, funding would then have to be optimised to ensure that it is used productively. On the impact on service delivery on the ground, the Department was concerned about dysfunctional ECD centres whose funding has been frozen. In some cases, learners are moved to alternative centres but in most the Department works with said centres to get them working again. On the allocation towards IT refresh, IT equipment and software is replaced every six years as it would have become redundant and guarantees would have lapsed.

Dr McDonald said data on staff exits was available and could be provided in writing. The Department was grappling with capacity constraints in some of its units particularly in the financial space as it was struggling to retain staff owing to competition from the private sector. The Department has also battled to fill supply chain practitioners’ positions. Of the 295 vacant posts, 200 had been filled and the Department hoped that suitable candidates will be found by the end of the year. On the allocation for victim empowerment, the decrease was R487 000. However, the Department was benefiting from an additional allocation at national level as 30 social work staff would be joining the Department from 1 December 2019. From 1 April 2020, an additional 30 will be joining the Department on a permanent basis. Therefore the budget will be substantially higher next year. The trend of increasing allocations for victim empowerment will be sustained going forward.

Mr Juan Smith, CFO, Western Cape Department of Social Development, said on the IT refresh, the Department was currently sitting with over 900 computer hardware that are over five years old and needed replacing. The R5 million allocation was just a fraction of the cost. On the shift of funds for training from Good and Services to Transfers, the Department initially had to pay the Health and Welfare Sector Education and Training Authority (HWSETA) levy. The levy was always budgeted for in the Goods and Services line item until the audit finding during the previous year indicated that the allocation should be disclosed as transfer payments. The additional funding for the expansion of the Sivuyile Centre for People with Disabilities did not take place on the date due to delays in implementation. On non-compliant NPOs in the ECD sector, the centres have to submit performance reports yearly and some had not done so. This was why funds had been suspended in some cases. The reductions in disability and victim empowerment funding were not related to the programmes themselves but due to posts that became vacant and as a result there was compensation money saved in order to fill the posts.

Ms Sharna Fernandez, Minister of Social Development: Western Cape Government, said the need for rehabilitation facilities was well-understood by the Department. However there was also need for strict compliance to prevent the establishment of fly-by-night facilities. The allocation shifts from Sivuyile was due to implementation delays hence the need to reallocate the funds as per the adjustment budget. However, a significant amount had been allocated in the formal budget flowing from the State of the Nation Address declaration to fight gender-based violence. A detailed overview will be presented in the formal budget. The Department is a complex one and the aim should be to reduce the number of the indigent and vulnerable within the province. However, departmental planning is based on all sorts of criteria. The aim of the team over the next five years was to reduce the plight of citizens and the number of the vulnerable.

The Chairperson appreciated the responses and said the Committee, having deliberated on Budget Vote 7 (Department of Social Development) supports the Report put before it. He put the Report of the Committee on the Adjustment Appropriation Bill up for adoption.

Ms W Philander (DA) moved for its adoption.

Mr Mackenzie seconded.

Ms Bakubaku-Vos expressed the minority view on behalf of the ANC in not supporting the adoption of the Report.

The meeting was adjourned.