Upload
martin-trevino
View
61
Download
1
Tags:
Embed Size (px)
DESCRIPTION
PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM. ANNUAL REPORT: 2009-2010 DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM. 13 OCTOBER 2010. Mr. Mduduzi Shabane Acting Director-General. OUTLINE. INTRODUCTION CONTEXT PERFORMANCE OVERVIEW FINANCIAL PERFORMANCE - PowerPoint PPT Presentation
Citation preview
PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM
13 OCTOBER 2010
ANNUAL REPORT: 2009-2010
DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM
Mr. Mduduzi ShabaneActing Director-General
1
OUTLINE• INTRODUCTION• CONTEXT• PERFORMANCE OVERVIEW• FINANCIAL PERFORMANCE• PROGRAMMES PERFORMANCE• CRDP PROGRESS• REPORT OF THE AG• PROGRESS FROM 2008/09 AUDIT FINDINGS• INVESTIGATIONS COMPLETED• CONCLUSION 2
INTRODUCTION
The Purpose of this presentation is to brief the Portfolio Committee on: The Programme Performance of the Department of
Rural Development & Land Reform (DRDLR) based on the Interim Strategic Plan 2009/10;
The Financial Performance for 2009/10 financial year; and
Progress made in 2009/10 financial year against 2008/09 financial year as per the AG’s Reports.
3
CONTEXT At the beginning of the period under review the voted
funds of the department were aligned to the strategic plan of the former department of Land Affairs.
After the new Administration took office in May 2009, a new department of Rural Development & Land Reform was established.
The Department had to come up with a new Vision, Mission, Strategy, Programmes and Budgets to give effect to the new mandate.
Effectively 6 months of the period under review were spent in re-organising whilst implementing at the same time. 4
CONTEXT (Continued)
• The following new programmes were established:– Branch: Geo-spatial Services, Technology
Development and Disaster Management (GTD).– Branch: Social, Technical, Rural Livelihoods and
Institutional Facilitation (STRIF).– Branch: Rural Infrastructure Development.
5
CONTEXT (Continued) Despite these fundamental changes, the department
launched its flagship programme – the Comprehensive Rural Development Programme (CRDP) three months after the inception of DRDLR.
The trend of improving governance and the control environment continued resulting in the elimination of audit qualifications – only one now remaining which will be eliminated in the next MTEF period
Even though the AG has correctly identified inadequacies in our risk management strategy, the department has continued to detect & deal with fraud & corruption decisively, e.g. forensic investigations in KZN
6
PERFORMANCE OVERVIEW The Department had a final allocation of R6.391
billion out of which R5.854 billion was spent in the year under review.
The spending during 2009/10 translated into 92% of the final allocation, compared to the 99% spent during the preceding year.
The 8% under-spending is largely attributable to the changes in the mandate of the Department and the conceptualisation of the new programmes.
The Department’s activities were organised into seven (7) Programmes, and the following discussion will be based on these programmes.
7
FINANCIAL PERFORMANCEAppropriation per programme R'000
Final appropriation
Actual amount spent
Under-Spending
Under- Spending %
Administration 652,244 573,225 79,019 12.11%
Auxiliary and Associated Services
67,197 63,171 4,026 5.99%
Surveys and Mapping 88,455 84,529 3,926 4.44%
Cadastral Surveys 140,824 127,662 13,162 9.35%
Spatial Planning and Information
64,102 41,908 22,194 34.62%
Restitution 2,338,393 2,331,634 6,759 0.29%
Land Reform excl Rural Dev
2,787,536 2,569,601 217,935 7.82%
Rural Development 252,340 62,991 189,349 75.04%
TOTAL 6,391, 091 5,854,721 536,370 8.39%
8
Programme PerformanceProgramme 1: Administration• This programme was at the forefront of the transformation
of the old department into the new and, while some of their targets may have been ambitious, their performance was also affected by the changes that took place at the time.
• HR Plan completed & Implementation underway.• Vacancy rate significantly reduced from 16,7% to 10,24%.• 21 prioritised posts (incl 17 Senior Management) filled.• ICT Strategy for 1 year initiated.
9
Programme PerformanceProgramme 2: Surveys & Mapping• The environment in which this programme
operates is highly specialised and well regulated.• The performance of this programme has been
consistent over a period of time and some of the set targets have been exceeded.
10
Programme PerformanceProgramme 3: Cadastral Surveys Mgmt• The Cadastral surveys environment is also highly
specialised and well regulated.• It is also an area of scarce skills.• The performance of this programme has been
relatively consistent and is still improving.
11
Programme PerformanceProgramme 4: Restitution• This is an area where the Department faces its
biggest challenge, at least in the medium term, from a budget point of view.
• The Ministry has directed the department to develop a Turn Around Strategy for Land Restitution.
• The Turn Around Strategy will be informed by the CRDP principles.
12
Programme PerformanceProgramme 5: Land & Tenure Reform• During this period the focus of this component has shifted
from emphasis on hectares transferred to sustainability of land reform projects, hence the introduction of the Recapitalisation & Development Programme.
• Despite the reported non-achievement of the set targets, the programme delivered 240 000 hectares.
• The programme also requires improvement in the area of monitoring and evaluation and controls, especially in the light of the fraud and corruption that has been uncovered in some provinces.
13
Programme PerformanceProgramme 6: Spatial Planning & Information
• The work of this programme has significantly increased since the inception of CRDP.
• The performance of this programme has been consistent over a period of time.
• Like Surveys & Mapping and Cadastral Survey Management, this programme has implemented scarce skill retention programmes.
14
Programme PerformanceProgramme 7: Deeds Registration• The Deeds environment has also performed
consistently well over a period of time in relation to the targets set.
• However, there is clear evidence that integrity and security of information and the systems require urgent overhaul. This has become even more urgent given some of the fraudulent and corrupt activities that have been uncovered.
15
CRDP PROGRESSPROVINCE COMMUNITY WARD
Limpopo Muyexe, Thomo, Gonono, Dingamanzi Wards 18, 17, 3 and 4
Northern Cape Riemvasmaak Siyanda District Municipality area (2 sites)
Mpumalanga Mkhondo Wards 1 and 2 (Emahashini, Jabulani Bafazi, KwaGema, Donkerhoek)
North West Mokgalwaneng, Disake and Matlametlong
Ward 29
Free State Diyatalawa/Makgolokwe Jacobsdal
Wards 1 and 4 Diyatalawa/Makgolokwe,Ward 1 Jacobsdal
KwaZulu-Natal Msinga and Vryheid Wards 6, 7, 8, 9 of Msinga / Ward 5, 6, 7 Vryheid
Western Cape Dysselsdorp and Mamre Wards 10 and 12 Dysselsdorp and Mamre (Ward 29 Cape Town)
Eastern Cape Mhlontlo Tsolo (Mqobiso and Nombodlelana) Ward 2 and Qumbu (Ngxakolo and Gqunu) Ward 13
TOTAL 23
REPORT OF THE AG
GENERAL ASSESSMENT
– The Department made significant progress in resolving matters previously reported by the Auditor General.
– Qualification on Lease Receivable was cleared and controls are being put in place to prevent the recurrence.
– The Deeds and the Land Agricultural Holding Trading Accounts received unqualified audit reports.
– Management is continually putting in place management action plans to address weaknesses identified by audit reports and such plans are monitored closely by senior management.
17
PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT
18
AUDIT FINDINGS PRIOR YEAR CURRENT YEAR COMMENTS
2008/09 FINANCIAL YEAR 2009/10 FINANCIAL YEAR
Tangible Capital AssetsAudit Assertions (completeness, valuation, rights & obligation) not confirmed
Tangible Capital AssetsAudit Assertions (completeness, valuation, rights & obligation) not confirmed
Tangible Capital Assets are being verified against Deeds Records. This exercise will be finalised by December 2010
Lease DebtorsAudit Assertions (completeness, valuation & existence) not confirmed
Lease DebtorsAll Audit Assertions confirmed
Qualification on Lease Debtors has been cleared in 2009/10 financial year
AUDIT QUALIFICATION
19
PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT
AUDIT FINDINGS PRIOR YEAR CURRENT YEAR COMMENTS
2008/09 FINANCIAL YEAR 2009/10 FINANCIAL YEAR
Fruitless & Wasteful ExpenditureR4.9m
Fruitless & Wasteful ExpenditureR2.7m
The amount of Fruitless & Wasteful Expenditure has been reduced
Irregular ExpenditureR74.9m
Irregular ExpenditureR4.2m
The amount of Irregular Expenditure has been reduced
Material Losses through Criminal ConductsR6.1m
Material Losses through Criminal ConductsR53.3m
Forensic Investigations were performed by the Department during the year under review which uncovered fraudulent activities
EMPHASIS OF THE MATTER (not affecting Audit Opinion)
20
PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT
AUDIT FINDINGS PRIOR YEAR CURRENT YEAR COMMENTS
2008/09 FINANCIAL YEAR 2009/10 FINANCIAL YEAR
Pre-determined Objectives Reported Performance Information not reliable
Pre-determined ObjectivesPerfomance Targets not specific & measurable
Monitoring & Evaluation Unit has been capacitated and key positions in the Unit have been filled
Risk Management & Internal ControlsSection 38(1)(a)(i) of PFMA not fully complied with
Risk Management & Internal ControlsSection 38(1)(a)(i) of PFMA not fully complied with
Improvements in Risk Management & Internal Controls still required
State of Accruals at Year-endAccruals at year-end exceeded amount to be surrendered to NT
State of Accruals at Year-endAccruals at year-end did not exceed amount to be surrendered to NT
Accruals at year-end for 2009/10 financial year were in compliance with Treasury Regulations
Collection of Section 78(2A) MoniesAccounting Officer did not comply with Treasury Regulations 11.2.1
Collection of Section 78(2A) MoniesAccounting Officer did comply with Treasury Regulations 11.2.1
The Accounting Officer did comply with Treasury Regulations 11.2.1 in 2009/10 financial year
OTHER MATTERS REPORTED(Not affecting Audit Opinion)
INVESTIGATIONS COMPLETED BY THE DEPARTMENT
29 investigations were completed during 2009/10. Allegations of corruption and irregularities related to land reform
projects in KZN were investigated by DRDLR. Forensic Investigations uncovered R53 million of fraudulent activities
(reported as material losses) in KZN land redistribution. Special Investigating Unit (SIU) has been brought on board to evaluate
the severity of the fraud issues. The criminal matters have been referred to the SAPS and Hawks to
investigate and prosecute. The AFU has been requested to assist on the recovery of losses
identified. The officials implicated have been suspended and disciplinary action
underway.
21
CONCLUSIONWhile acknowledging the legacy of the former department that DRDLR has inherited:•The fundamental changes in the organisation of the government has resulted in a Ministry dedicated to Rural Development and Land Reform; and•The Ministry has provided the department with clear strategic direction and leadership which has resulted in a focused department that is now able to confront the challenges it faces.
--END--
22