Hon Chair, hon Minister, Mr Thulas Nxesi, hon Deputy Minister and other Deputy Ministers who are here, hon members, ladies and gentlemen, the ANC policy document, Ready to Govern, of 1992, and the RDP of 1994 shaped the socioeconomic content of the programme of Public Works in the first decade of our democratic dispensation.
The policy perspective provided the framework that outlined our country's perspective on the trajectory that the Public Works programme should pursue. This spoke to the essence of the ANC's economic policy of creating a strong and dynamic economy that will be directed towards eliminating poverty and the extreme inequalities generated by apartheid; democratising the economy and creating employment opportunities for all South Africans; and initiating growth and development to improve the quality of life of all the people, especially the poor.
The Budget Vote of the Department of Public Works has to address priorities of stabilising leadership, working towards a clean audit, finalising the state's Immovable Asset Register, improving finance and the Supply Chain Management unit, addressing the challenges of the Property Management Trading Entity and improving human resource management.
The steps taken by the department to improve its financial controls are mostly welcomed. That will improve the financial performance of the department from a disclaimer to a clean audit. This will not be an event, however; it will be a process.
Infrastructure development is one of the job drivers identified by the National Growth Path framework. In 2011-12, the amount of R1 billion was budgeted for infrastructure development, but the department failed to spend the allocation. There was underspending of R425 million, which was a matter for concern, as infrastructure projects are the ones that create jobs and reduce poverty and unemployment. Through infrastructure development, people must be able to put bread on their tables. Therefore, no underspending will be tolerated on infrastructure development.
Further underspending was noticed on machinery and equipment - R3,9 million in the 2011-12 financial year. In 2010-11, the budget allocation of the department was R7 364 797 000. Unspent funds amounted to R749,714 million, which has increased by R18,593 million to R768,307 million of unspent funds in 2011-12, of the budget of R7 829 744 000. We do not expect any underspending while citizens are waiting for service delivery.
While we are not going to tolerate any underspending, we are also not going to tolerate overspending, as both are against the prescripts of the Public Finance Management Act, PFMA. Overspending on the compensation of employees and goods and services must be minimised. The PFMA, which was passed in March 1999, is the latest piece of financial and fiscal legislation required by Chapter 3 to transform the financial and fiscal arrangements. It further legislated a series of sanctions to ensure compliance by administration and politicians. Therefore, compliance, compliance, compliance - not malicious compliance - is necessary. If there is failure to comply, steps must be taken.
The steps taken by the department, through the Minister, instituting investigations and suspending those officials who are found to be wrongdoers, are mostly welcomed. The suspension should not take a long time, as it would be fruitless expenditure paying people who are not at work. This is unless it is "no work, no pay", to save the public purse.
Minister, whip where you are supposed to whip, fire where you are supposed to fire, and reward or praise where you are supposed to praise. We will support you 100%, as this committee. [Applause.]
In 2009, a commitment was made by the ANC - it was not said by someone else, somewhere - that initiatives should be taken to fight corruption. These initiatives includes a review of the state procurement system to ensure better value for money from state spending, the vetting of the supply chain management personnel in government departments, and the involvement of businesspeople in fighting corruption by implementing anticorruption programmes, as fraud and corruption cripple service delivery. This shows that the ANC is not quiet about fraud and corruption.
The ANC has the capacity to lead and to deal with issues and to make decisions. The ANC does not need any cautioning from the DA, but the ANC can caution the DA. The Expanded Public Works Programme, EPWP, started in 2004, with the first phase up to 2009. Then the second phase started. It was not through elections.
Lungu elihloniphekile u-Swathe, angazi Baba ukuthi ukhuluma ngani ... [Hon member Swathe, I don't know what you are talking about ...]
... because you are a member of this committee. Information is power.
Uyithanda kakhulu i-DA, asazi uthi yakwenzelani ngoba thina yasihluphekisa kangaka. [You love the DA too much; we don't know what it has done for you, because it made us struggle so much.] [Interjections.]
The human resource status of the department reflects that 86% of the posts are occupied, and 943 posts - which is 14% - are vacant. In 2011-12, the department operated with an unstable top management structure. There were many people in acting positions. Progress was made by filling 1 286 positions. Is this not progress? There is still a high vacancy rate and a high number of resignations, which hinders service delivery. There is a need for the department to do a skills audit to check the skills that are available, skills that they need but that are not available, and to review the organisational structure to ensure professional, skilled personnel are being recruited, as this department is mostly a technical one.
Overuse of consultants by departments is a matter for concern. Eight consultants were appointed for e-works and four for paper trails. Consultants must be used where there is a lack of professional and technical skills, for instance, in the compilation of the asset register. Proper terms of reference must be developed and the consultants closely monitored.
The hon President, in his state of the nation address in 2012, indicated that all government departments were directed to ensure that the target set several years ago of employing 2% of people with disabilities in the public sector is being met. The department is still grappling to achieve that. Let this matter be taken seriously. Let the Department for the Public Service and Administration, DPSA, be involved in the recruitment process. It is true that there is nothing about them without them being involved. Let us make sure that in the next financial year you report progress on this matter.
Former President Nelson Mandela once said, "The purpose of the budget is to bring a better life for all; it is about transforming our country together". Therefore, the budget plays a crucial role in the democratic process, as the budget is for the people.
As Parliament, we allocate resources to departments to enable them to execute their mandate by providing services to the people of South Africa to better their lives. We therefore expect the resources to be used efficiently, effectively and economically for the benefit of the citizens, not individuals.
If other members of the committee come to meetings as they wish and are sometimes not part of oversight visits, they will not see or hear about progress made by the department. They will come here and talk about their dreams. They dream about being in power in 2019 and do not focus on the performance of the department. What a bad dream! [Interjections.]
Progress has been made by the department in making buildings accessible to people with disabilities, although there is still a lot to be done. The centralisation of Prestige, which resulted in a saving of R18 million, is progress. Development of the turnaround strategy to address the challenges within the department is progress. Progress has been made in completing some investigations. These will show whether any money was stolen, or not. Disciplinary action taken against officials who were found to be wrongdoers is progress.
Improvements made to better the lives of people through the EPWP and infrastructure development is progress. Provision of skills to the youth and women through the EPWP and other programmes, such as learnership internships, and the provision of bursaries to the previously disadvantaged students is progress.
The appointment of the director-general and the chief financial officer, where the posts were vacant for some time, is progress. [Interjections.] What is progress? [Interjections.] The department has been able to pay some service providers on time, although there is still a lot to be done. Is that not progress? [Interjections.]
Those with eyes will see that improvements have been made by the department. If they are not willing to see, they will not see. Let the department move on. Hon Minister, do not be scared by the noise. It is an indication that the department is working. Do not lose focus; you are on course. What worries the moon when the dog barks? If people are making unnecessary noise, continue working. [Interjections.]
While there are successes, as we have mentioned, there are challenges that the department needs to consider: high staff turnover, which results in the loss of organisational memory; a lack of monitoring of the implementation of infrastructure projects; insufficient budget to recruit and retain professional staff; shifting of funds within programmes due to poor planning; failure of client departments to pay the Department of Public Works for the provision of services rendered on their behalf, which impacts negatively on the finances of the department and on service delivery; a lack of compliance with various policies and legislation; underspending, overspending, fruitless and wasteful expenditure; and the nonalignment of the strategic plan, annual performance and budget.
Those are the issues that need to be taken into consideration. If you work, challenges will be there. However, challenges need solutions in order to do things well.
The ANC has, and always will, put our people first by investing in job creation, housing, education, skills development and growing the economy. The department has some committed personnel who can turn the tide and restore the image of the department.
Together, we can do more. All hands on deck. Citizens are waiting. The ANC will continue to intensify its efforts to provide services and opportunities to South Africans. The ANC is the only hope for South Africans. [Applause.]
Hon Dreyer ...
... uyazenzisa; iqiniso uyalazi. [... you are pretending; you know the truth.]
You know, you contradict yourself. You agree with us that there is progress, but ...
... uyajikajika. kunengoma ethi, "uyajikeleza indlela awuyiboni." Ihaba-ke ukuthi ... [... later you deny it. There is a song and its lyrics go like this: "You are going round in circles and you don't see the way." It is an exaggeration to say that ...]
... the DA will be in power by 2019. Not now, not tomorrow, not in the future. The DA must just forget it. Know very well and accept that the ANC is in power, and the ANC will reign forever.