Western Cape Department of Agriculture MEC JJ Dowry 11 February 2008

Departmental Expenditure Description 2005/06 R’000 Actual 2006/07 2007/08 Adjusted Budget Equitable Share 174 353 212 610 240 623 Conditional Grants 67 979 34 706 75 974 Own Revenue 16 183 19 311 14 963 TOTAL 258 515 266 627 331 560

Expenditure per Programme 2005/06 R’000 Actual 2006/07 2007/08 Adjusted Budget Administration 34 514 39 117 53 671 Sustainable Resource Management 48 302 44 122 74 357 Farmer Support and Development 72 396 71 820 84 729 Veterinary Services 25 656 27 891 34 079 Technology Research and Development 50 513 49 336 52 482 Agricultural Economics 7 571 8 375 6 649 Structured Agricultural Training 19 581 25 966 25 593 TOTAL 258 515 266 627 331 560

Expenditure per Economical Classification Description 2006/07 R’000 Actual 2007/08 Adjusted Budget Current Payments 212 671 240 206 Transfers Other 35 229 72 791 Transfers Capital 4 957 500 Capital Payments 13 770 18 063 TOTAL 266 627 331 560

Conditional Grants Grant 2006/07 Budget R’000 Actual 2007/08 Adjusted PIG 3 000 LandCare 3 730 3 480 3 317 CASP 20 648 20 644 33 426 Drought Relief 10 199 7 582 20 000 Floods 33 000 10 000 Hail 9 231 TOTAL 70 577 34 706 75 974

CASP Purpose: To provide post settlement support to targeted beneficiaries of mainly land reform and other producers who have acquired land through private means

CASP: 2006/07 Budget – R20,648 million Spent – R20,644 million (unspent R4 000) 143 Projects (61 LRAD & SLAG) 5 765 Beneficiaries 461 Youth 3 459 Women Mainly fruit and vegetables

CASP: 2007/08 Budget – R33,426 million Actual Spending to 31 Dec 2007 – R14,822 million 107 projects ( 46 LRAD & SLAG) 53 Food Security projects 5 390 Beneficiaries 3 868 Women and Youth

CASP: 2007/08 (cont.) 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected 2 609 3 852 8 361 18 604 January 2008 – R3,317million

LandCare Purpose: Through sustainable resource management, improve and develop the livelihoods of individuals and communities through integrated governmental and community based partnerships

LandCare: 2006/07 Budget – R3,115 million plus R615 000 roll over Spent – R3,480 million (under spent by R250 000) 25 projects (junior LandCare and alien clearing) 481 beneficiaries (jobs in alien clearing) 34 430 person days 162 women 2 950 youth (Junior LandCare) attended camps 13 500 youth attended Junior LandCare puppet shows

LandCare: 2007/08 Adjusted Budget – R3,317 million Actual Spending to 31 Dec 2007 – R1,512 million 32 projects (Junior LandCare, alien clearing) 769 beneficiaries (jobs) or 28 398 person days 140 women 5 150 youth (Junior LandCare) attended camps 9 300 youth attended Junior LandCare puppet shows

LandCare: 2007/08 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected 287 482 1 183 1 805 January 2008 – R0,163million

Challenges Time constraints linked to staffing Legal issues within groups (contracts, legal entities not functioning, conflict) Serious cash flow problems and debts LRAD programme take 35 – 40% of FSD “Sleeping partners – tail wagging the dog” Reallocation of funds - ± R 3.2 million due to selling off farms and Bank legal processes and repossession of farms

Challenges (cont.) Alignment issues (organisations, programmes and government grants) Stakeholder participation, i.e. Municipalities etc. Drought and floods – delay implementation of projects Pre-settlement training of LRAD beneficiaries 2008/09 application process started in 2007/08 Shortage of Engineers, Economists & Subject Matter Specialist Projects are staff driven not beneficiary driven

Challenges (cont.) Technical staff had to do verification of 2006 flood damages on 550 farms Technical staff involved in flood repair and recovery work Abnormal high rainfall in Southern Cape and Klein Karoo in 2007 led to delays in project implementation

Remedial Action Intended for next financial year N2 Corridor connected Started October 2006 Started August 2007 Regular meetings held to finalise joint approach Involvement of more NGO’s and Farmer Unions IT – Wireless connections LRAD – Monthly meetings with DLA DPAC Committee M&E – DLA and PDA monitor projects

Remedial Action (cont.) Comprehensive support to LRAD projects 2008/9 Outsource Infrastructure pillar of CASP to Casidra Auditor General requirements –paper trail Intended for next financial year Currently underway

Drought Relief Purpose: To give relief to livestock producers in declared drought stricken areas by supplying limited fodder and transport thereof

Drought Relief: Process Assessment of specific areas for signs of drought Establish a representative committee to assess areas Prepare a report for national DoA, via Provincial Disaster Management Unit After national DoA concurs that it is a disaster area, then DoA approaches the Presidency for a declaration, and then national Treasury for financial support After funds have been obtained, then a framework agreement is finalised and gazetted Administrative process then gets put in place Only after this, then funds can flow to the affected farmers

Drought Relief: 2006/07 R10,199 million roll over Spent – R7,582 million (under spent by R2,617 million – transferred to hail disaster in 2007/08) 1 015 households benefited of which 318 were emerging farmers

Drought Relief: 2007/08 Budget – R20 million received in December 2007 during the adjustment estimate Spent – R0 R10 million expected to be rolled over to 2008/09

Drought Relief: 2007/08 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected Not received 10 000 January 2008 – R5,87million

Flood Relief Process After the flood, a team of agricultural engineering specialists assesses the damage (preliminary) This information is fed to the Provincial Disaster Management Unit, who then prepares a report for cabinet, which then submits this decision (disaster) to the Presidency for a disaster declaration After the declaration, then different national Departments approach national Treasury for funds After the funds are secured then the DoA and PDA agree and enter into a framework agreement Staff then has to assess, verify and analyse individual claims in terms of the framework And only after this verification process is completed, payments can be made

Flood Relief: 2006/07 Received December 2006 (Adjustment Estimate) – R33 million Unspent – R33 million (Spending prescripts finalised in May 2007 only)

Flood Relief: 2007/08 Received December 2007 (Adjustment Estimate) – R10 million Spent – R7,856 million (Spending prescripts finalised in May 2007 only) 182 of the total number of 550 landowners affected by the floods benefited from flood relief and recovery works to date

Flood Relief: 2007/08 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected Not received 7 856 2,144 January 2008: R0,656million

Hail Relief: Process Similar to Flood process

Hail Relief: 2007/08 Received December 2007 (Adjustment Estimate) – R9,231 million Spent – R3,453 million For period of 3 years 394 Beneficiaries – 346 retrenched farmworkers re-employed and 48 additional workers employed R4,2 million to be rolled over to 2008/09

Hail Relief: 2007/08 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected Not received 3 453 1 578 January 2008: R1,338 million

CAPITAL EXPENDITURE Description 2006/2007 2007/2008 Budget R’000 Actual Adjusted Projected Capital 13 778 13 770 18 063 Transfer Capital 5 180 4 957 500 TOTAL 18 958 18 727 18 563

CAPITAL EXPENDITURE (CONT.) 1st Quarter R’000 Actual 2nd Quarter 3rd Quarter 4th Quarter Projected 882 1 537 2 556 13 588

Monitoring & evaluation Each Programme has its own M&E system Field staff visit projects on regular basis FSD Programme created positions for M&E officers – only 1 was filled, but left for 3 levels higher in Eastern Cape Challenges: Post level of M&E officers Scarcity of skills in the specific field

Monitoring & evaluation Institutional Monitoring & Evaluation Standing Committee Annual budget, annual report Appropriation budget General policy issues Parliamentary Questions Ministerial enquiries (Red Numbers) Laws that govern us and to which we must adhere (Strategic Plan p17-19) Strategic Plan, Annual Performance Plan, Skills development Plan, EE Plan, etc. Service Standards Charter

Monitoring & evaluation Finances Departmental quarterly narrative reports to Provincial Treasury (PT) Quarterly narrative reports on CASP and LandCare to DOA Quarterly compliance with PFMA report to PT Monthly in Year Monitoring and conditional grant report on financial status of Department to PT Monthly financial report on CASP and LandCare to DOA

In answer: Question 3: Monthly reporting is done

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