Somlomo, maLungu ePalamente, Baphathiswa nooSekela- Baphathiswa, neendwendwe ezikhoyo, bhotani. Simothulela umnqwazi urhulumente welizwe okhokelwa ngumbutho wabantu i-ANC, nobhexeshwa ngunyana kaTata uMsholozi, uMongameli uZuma ukutsho, ngokuthi thaca iqhosha elingenantuja, imali ke ukutsho, engaphaya kwamakhulu amahlanu anamashumi amane anesithathu amawaka ezigidi-gidi zeerandi - R543,6 billion ngolwasemzini nto leyo ebonakalisa uchatha kuHlahlo-lwabiwo-mali lwanyakenye - 2011-12 financial year - ngolwamadlagusha. (Translation of isiXhosa paragraph follows.)
[Mrs L E YENGENI: Hon Speaker, hon Members of Parliament, hon Ministers and hon Deputy Ministers, visitors present here, I greet you. We commend the ANC-led national government, under the leadership of Mr Msholozi, meaning the hon President Zuma, for providing money, over five hundred and forty- three billion rand - R543,6 billion, something which shows an increase on the previous financial year's Budget - in English, the 2011-12 financial year.]
We have noted that at least more than 60% of this budget has been allocated for transfers and subsidies; less than 39% for current payments; and only 2% for capital expenditure. The responsibility lies in the hands of these departmental officials to spend the available budget according to plans - efficiently, effectively and economically, and in line with the Public Finance Management Act, Municipal Finance Management Act and Supply Chain Policy.
We have noted the increasing trend of mismanagement of funds, which includes unauthorised expenditure, wasteful expenditure, fruitless expenditure and noncompliance with law and regulations. Unlawful expenditure has a direct impact on our appropriated Budget and affects the delivery of services negatively because the department is then unable to achieve all performance targets as planned. We have noted the increasing trend of misalignment between the budget spent and the strategic plans of government departments. For instance, certain departments will spend 100% of their budget; whereas they will only achieve 60% or less on their performance targets. This needs urgent attention.
This does not give our government value for money. We have noted the cost escalation in some of the major infrastructure projects, like the Accelerated Schools Infrastructure Delivery Initiative, Asidi, project in the Eastern Cape, Public Works projects, newly built prisons in the Northern Cape, the revamped and maintained prisons, hospital revitalisation projects - which are the key programmes for us to be able to implement the National Health Insurance - to name a few, and we are concerned as the ANC component in that committee.
The escalation of major infrastructure projects is a major concern, taking into account the fact that the Supply Chain Policy provides for a three- quote process before the procurement can be made. It further provides for government to take the lowest bidder; still there is not much of a difference. Maybe we need to pose a question to National Treasury as to how this three-quote system helps the government to achieve its intended objective, with minimum costs and, at the same time, obtain value for money.
The reason why we need to ask this question is that most, if not all, projects are quoted and the lowest quote is taken, but surprisingly the lowest cost has become even much higher than the one which was the highest to begin with. These figures are manipulated intentionally by the private sector because there is no competition. They know that they are the only stakeholders that the government is using or that have the capacity to deliver in most of these major infrastructure projects, on behalf of the government.
Our government is always a loser or gets ripped off by these companies. That is a serious financial and economic challenge. I call upon Treasury and the government to look into this challenge as a matter of urgency, since this has been declared the year of infrastructure development by the hon President. Should this challenge be left unattended, monopoly capital will continue to make a 100% surplus or even more at the expense of our poor people.
In most instances these cost escalations are a clear element of corrupt tendencies by DA constituencies. It is also understandable why those peacetime politicians, who claim to be advocates of anticorruption, are mum and pretend to be blind when it comes to these corrupt tendencies. In fact, the word corruption has been selectively used and deliberately abused by antidemocratic forces of Helen Zille ... [Interjections.] [Applause.] ... in alliance with hon Mosiuoa Lekota, whose political reactionary posture resembles that of Hitler in Nazi Germany. [Interjections.] [Applause.] For instance, issues of irregular and fruitless expenditure do not necessarily amount to corruption, but are issues of compliance. [Interjections.]
Kuyafuneka ke ukuba singenise isikolo koogxa bethu abasekunene, ingakumbi ngala magama ezopolitiko ... [Uwelewele.] ... igama lorhwaphilizo ... [We need to teach our fellow colleagues on my right, especially when it comes to political terms ... [Interjections.] ... the term corruption ...]