1. Presentation to the Portfolio Committee 25 MAY 2011

2. QUARTELY REPORT – 31 MARCH 2011
Financial overview
Appropriation R4, 715 billion
Actual expenditure (31/03/2011) R 4, 395 billion
Spending represents 93.2% of Adjusted Appropriation. 22

3. PROGRAMME 1: ADMINISTRATION
Final Appropriation R1,279 billion
Actual expenditure (31/03/2011) R 1,057 billion
Actual spending recorded at 83% of appropriation.
Reasons for under-spending:
CAPEX Projects:
Washington
SA House – London
Abuja 33

4. PROGRAMME 1: ADMINISTRATION
1. Washington:
The Government of the RSA purchased the Chancery & O.R in Washington October No major renovations have been done since the purchase of properties, which have led the systems of the facilities to become outdated & worn beyond repair. The Embassy has also grown to such an extent that all DIRCO & partner department staff could not be housed in the Chancery, resulting in another building being rented for the use of partner departments as well as for immigration & civic services.
DIRCO conceptualized upgrading project, estimated to cost R 206 million as a multi- year project.
Design Phase of the project completed in 2010
DIRCO had expected to, in the 2010/11 financial year, receive approval for the design from the local authorities, appoint a contractor & commence with construction works.
As the buildings are both historical buildings, changes to the buildings are subject to legislation & requires a detailed public participation process prior to building plans being approved. This led to significant delays in finalizing the design & obtaining approval from the local authorities. 44

5. PROGRAMME 1: ADMINISTRATION
SA House – London
DIRCO commenced in 2010/11 financial year with project to refurbish 2 passenger & 1 goods elevator in SA House, London. 
Work entailed the complete refurbishment & upgrade of the hoisting equipment as well as the lift cabins. Jackson Lift Group was appointed to do the work.
Shortly after work on the lifts commenced asbestos was found in the area. Asbestos is a hazardous material that is legislated against in most European countries. In terms of the law, DIRCO had to appoint a specialist to conduct studies to determine the extent of the asbestos & the recommended manner in which it needs to be dealt with. Based on the study & recommendations, the asbestos had to be removed by a specialist contractor, which resulted in work on the refurbishment being unavoidably delayed. 55

6. PROGRAMME 1: ADMINISTRATION
3. Abuja
Construction of Chancery & O.R in Abuja commenced in 2009 & has, since inception, been plagued by slow overall construction progress made by the contractor as well as claims for extension of time.
High level Departmental intervention with the Chief Executive Officer of the construction company, which resulted in completion of the O.R in October
Due to the construction environment in Nigeria as well as the DIRCO’s specific security & ICT requirements, at least 95% of the materials & equipment needed in the project is imported, which caused further delays in the completion of the Chancery.
The construction of the Chancery has, at end March 2011, largely been completed & hand over & relocation of staff is expected to take place in the first half of 2011/12. 66

7. PROGRAMME 2: INTERNATIONAL RELATIONS
Final Appropriation R billion
Actual expenditure (31/03/2011) R billion
Actual spending recorded at 100% of appropriation. 77

8. PROGRAMME 3: STATE PROTOCOL & PUBLIC DIPLOMACY
Final Appropriation R 222, 6 million
Actual expenditure (31/03/2011) R 204, 7 million
Actual spending recorded at 92% of appropriation.
Reasons for under-spending
Upgrading of Public Diplomacy to Branch
Chief of State Protocol post vacant for most of the financial year 88

9. PROGRAMME 4: INTERNATIONAL TRANSFERS
Appropriation R828, 2 million
Actual expenditure (31/03/2011) R754, 9 million
Actual spending recorded at 91.2% of appropriation.
Reasons for under-spending
The following payments were processed post 31/12/2010
African Union R million
SADC R million
R million
Exchange rates – Membership fees
Assessments – Peace Keeping 99

10. Thank you
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