Department of Transport budget: Committee Report

Meeting report

Draft Committee report on the Budget and Annual Performance Plan of the DoT

The Chairperson introduced Advocate Alma Nel, Committee Content Adviser to go through the report, observations and recommendations.

Adv Nel notes the following:

The items in the draft report from section 1 up to (and including) section 6, is either information that the Committee has received in writing from either Adv Nel, or Dr Ngezi. This is information from the Department, th Annual Performance Plan (APP), and the budgets vote estimates of expenditure documents that was received for consideration from National Treasury in February.

Section 1 (the introduction) of the report states that the Committee had not yet received a briefing of the Strategic Plan, or any changes thereof at the time of compiling the report. The Committee will meet at a later date to consider any changes to the Strategic Plan.

Section 6 includes information that was taken from the estimates of expenditure document, presented by National Treasury so that the report accounts for the budget allocation for various entities of the DoT.

Adv Nel, reads through section 7 (Committee Observations) and section 8 (Committee Recommendations) of the report, verbatim (see draft report); which has been compiled given the draft observations that the Committee made in the previous meeting.

Discussion

Mr L Mangcu (ANC) refers to item 6.7 of the report, i.e. on the Ports Regulator of South Africa (PRSA), and he asks if the second last sentence is correct: ‘The regulator’s expenditure is expected to increase at an average annual rate of 10.2%, from R31.1 million in 2018/19 to R41.7 million in 2021/22, mainly driven by two additional personnel to its economic regulation programme’. He said it seems too huge. He also mentions that he is concerned about item 7.15 (Road Safety Programmes) which states that ‘the Committee welcomed the reported decrease in the 2019 Easter Holiday Road Death statistics’. He mentions that it sounds good but that he would rather it be removed. If it has been discussed prior then he will withdraw his proposal.

Adv Nel replied that item 6.7 was taken directly from National Treasury’s document, which means that that was the information that Treasury received from the entity regarding what they would need for that budget expenditure and those are the reasons presented to Treasury by the entity. She mentions that the problem is that the Committee themselves did not engage with the entity to verify, they relied on the document as presented by Treasury. She mentions that if Members do not agree with that percentage increase, that they could request that it be revised.

In response to 7.15, Adv Nel mentions that the road fatality statistics has been added in response to the road accident concerns, but if recommended by the Committee it will be removed and that this will lead to the recommendations under 8.15 also being removed.

Ms N Tolashe (ANC) refers to 7.7 (Vacancies and Acting Positions). The report needs to include more discussion on the last financial year. She suggests that a paragraph could speak more extensively on the performance of the Department in accordance to recommendations on the Auditor-General’s report.

Adv Nel replied that for 7.7 that the recommendations made by the Auditor-General for last year’s annual report is in the Budgetary Review and Recommendations Report (BRRR) of the Committee, especially the aspects regarding the vacancies that can be added as recommended by the Auditor-General. She said a paragraph can be added to fulfill the recommendations made by the Auditor-General.

Mr I Seitlholo (DA) seconds Mr Mangcu’s recommendation of removing the above-mentioned section in the report. He also asks for clarity on the last bullet point of page 37 on developing the Railway Safety Bill for submission to Cabinet by March 2020. A presentation on the 2016/17 term had already submitted this Bill in March 2017. He mentions his concern that the Department has an under spend of over R640 million. This is worrisome because the DoT is a critical department and there are many projects that are outstanding that could have utilised that money.

Adv Nel, replied that perhaps the Department did not discuss in detail that the Railway Safety Bill was already submitted to Cabinet in March 2017. She speculated that Cabinet could have sent it back for corrections or that the Department intends to bring about a new Railway Safety Bill proposal based on the new National Railway Policy. She is not certain as she is not part of the Department but she relies on the information before the Committee. The concerns regarding the under spend by the Department can be discussed in a paragraph, as an addition to sections 7 or 8 or added as a general comment. The Committee can assist on formulation thereof, to state that the Committee recommends that the Department supports full expenditure rather than under expenditure or over expenditure.

Mr L McDonald (ANC) refers to 7.7 (Vacancies and Acting Positions). He asks if the Committee could perhaps add a clause to address gender equality as it will serve good to the Committee’s policy on gender equality.

Adv Nel replies that she will try to find information on gender equality to address 7.7 The Department did not highlight their gender equality appointments and she suggests that information can be added to 7.7 so that during the filling of vacancies that the targets for gender equality are uphold.

Mr C Hunsinger (DA) comments on the example of the Railway Safety Bill and the confusion of its submission to Cabinet (where in a previous report appeared to have already been submitted). He reminds the Chairperson that he previously requested a full list of all the legislation, which he suggests may have helped in the questions and recommendations and especially intended for such an anticipated situation. It is difficult to measure progress on legislation when there is no common departure point to the Committee having insight into the whole pipeline of considered and underdeveloped legislation. He mentions an example of the variation of names such as the National Railway Bill, the National Railway Act and the National Railway Safety Act and he said the Committee needs a clearer indication on what they are dealing with to work constructively towards their goals.

Ms M Ramadwa (ANC) agrees that gender equality should be uphold in all appointments, but in order to ensure that women are also in decision making positions there needs to be a distinction between senior management services (SMS) and other appointments.

Mr K Sithole refers to the recommendation of 8.11 (Taxi Recapitalisation Project) versus the observation of 7.11. He questions the timeframe to report back to the committee, where under 8.11 it mentions that “the Department must present the reviewed policy to the Committee within 90 days of the adoption of this report by the House” but under 7.11 it states “the Committee noted the targeted implementation of the recommendations of the taxi recapitalisation programme by March 2020”.

Adv Nell, replies that 7.11 is a comment made by the Committee noting that the target set by the Department to monitor the implementation of the Taxi Recapitalisation Project is March 2020. For clarity, 7.11 states the Departments timeframe not the Committee’s timeframe.

Mr M Chabangu (EFF) refers to 7.9 paragraph 2 which states that ‘the Committee also noted delays in various SANRAL projects due to contractors withdrawing from some sites because of local community protests regarding these projects’. It should be noted that traditional leaders are also protesting due to the land which is under their custodianship (as discussed in the previous meeting).

Mr T Mabhena (DA) comments on 7.9 and what the department had presented in the previous meeting, as noted by the report the on the massive decrease in funding to the SANRAL from R6.3 billion in 2018/19 to R550.5 million in 2019/20. He questions how the Department will cope with the massive decrease in funding.

Adv Nel replies that she can only rely on her own experience at the Gauteng Roads and Transport Department but that she cannot answer on behalf of SANRAL and the Department on how they will cope with the tolling policy. She mentions that the general comment is that it is a concern and a new road funding strategy is needed.

Mr C Sibisi (NFP) wanted clarity on why the Committee or Department is noting delays caused by local community protests regarding the SANRAL projects. He also would like to enquire about the N3 Gauteng Durban Corridor Project/Van Reenen Development Project (formerly indicated as the De Beers Pass project). H asked for clarity on how far this project will take place, given the business complaints thereof.

The Chairperson replied that the previous question was addressed in the previous meeting and it seems as if the N3 Gauteng Durban Corridor project has been discontinued due to its economic impedes. However, there is a new project that will deal with that project to address the issue of accidents.

Mr Mabhena mentions that even though one cannot speak on behalf of the entities, that perhaps the deliberation on the APP of SANRAL can answer such questions. He suggests that out of concern he will form questions to the Department and to the Minister.

The Chairperson suggests that the Committee should then consider the report for adoption.

The DA, EFF, IFP and NFP did not participate in the voting.

After a 10 minute break, Adv Nel resumed. On PRASA’s expenditure, the report will include the following: ‘the Committee highlighted a serious concern regarding the regulator’s expenditure that it is expected to increase at an average annual rate of 10.2% from R31.1 million in 2018/19 to R41.7 million in 2021/22, mainly driven by two additional personnel to its economic regulation programme. The Committee was of the view that such a massive increase is intended to only be used for two additional personnel’.

To expand on the Auditor-Generals recommendations for 7.7 ‘in this regard the Committee wanted to highlight that the recommendations made by the Auditor-General for the budgetary review of 2017/18 as expressed in the annual report or reports of 2017/18 indicated that the root causes for entities with negative outcomes were the following: key management posts are vacant or filled with staff in acting positions which contributes to lack of accountability, the government structures and some of the entities are not fully constituted which results in ineffective oversight. Where an action plan had been put in place, it was not monitored at the appropriate level and the lack of progress was not escalated for further intervention by senior management. It is at a slow response for addressing ongoing deficiencies with compliance to laws and regulations and lack of consequence management in respect of staff who do not form their allocated responsibilities and some entities lack the discipline of ensuring the internal controls to ensure that accurate and complete financial reporting and complies to rules and regulation are adhered to”.

7.13 (Legislative Programme impact on Entities), after the second paragraph, the following was added “The Committee noted that there is a need to receive a full and comprehensive list of legislation that is proposed, which would include the current status of progress on these matters.”

7.15 (Road Safety Programme), it was suggested that the phrase “The Committee welcomed the reported decrease...” be changed to “The Committee noted the reported decrease in the 2019 Easter Holiday Road Death statistics”

8.7 (Vacancies and Acting Positions) Adv Nel includes the paragraph, the appointments are made with due consideration of gender parity principles for all critical vacancies that need to be filled in by senior management as well as throughout all levels of the Department, executive at the entities as well as board vacancies"

8.13 (Legislative Programme impact on Entities) the following is added “the Department is requested to submit the full and comprehensive list of legislation that is proposed which would include the current status of progress on these matters within 60 days from the adoption of the report by the House”.

Adoption of the report

Mr Mangcu (ANC) votes for the adoption of the report and its recommendations.

Seconded by Ms Ramadwa (ANC).

Consideration and adoption of minutes

Minutes dated 2 July 2019 were adopted without amendments.

The meeting was adjourned with the next meeting scheduled for 9 July 2019.