1. Department of Social Development PUBLIC HEARINGS ON CAPITAL EXPENDITURE 11 May 2007

2. OBJECTIVES To inform the Select Committee on finance with regard to the administration of capital spending. Assessment on Free State Social Development’s monitoring capacity. To ensure that expenditure is in line with the budget.

3. Social Development Capital Expenditure` R’000Adjusted Budget 2006/07 Total Expen- diture Over/Under Expenditure for 2006/07 % Spending v. Adjusted Budget Capital Expenditure 24,22723,90232599%

4. Economic Classification – Capital Expenditure R’000Adjusted Budget 2006/07 Total Expen- diture Over/Under Expenditure for 2006/07 % Spending v. Adjusted Budget Buildings and other fixed structures 9,4709,4691100% Machinery and equipment 14,75214,43331998% Software and other intangible Assets 5050% TOTAL 24,22723,90232599%

5. Reasons for increasing capital budget The original capital budget amounted to R11,651,000. No budget for Infrastructure within the Department for the 2006/07 existed, R9,470,000 had to be availed on order to pay contractors for the upgrading and renovations of state institutions. Another R3,106,000 was shifted from current to capital for the payment of departmental vehicles that were purchased for the amount of R11,7 million.

6. List of Infrastructure Projects – 2006/7 Bloem Secure Care Centre Tshireletsong Place of Safety Establishment of Thabo Mofutsanyana Secure Care Centre and One Stop Child Justice Centre Victim Support Centre

7. BLOEM SECURE CARE CENTRE Project descriptionUpgrading and renovations LocationBloemfontein DistrictMotheo EPWP (Y/N)No Source of fundingDepartment of Social Development Receipt of needs list by implementing agent Appointment of consulting engineersSeptember 18, 1998 Names of consulting teamVan der Westhuizen Botha Architects, Mekoja, Iliso, Tilca and Lerotholi & Associates Awarding of contractsMay 27, 2005 Name of contractorsReder Construction Handing over of siteAugust 11, 2005 Progress as per work programme of the PM98% Estimated costsR7 022 570-73 Expenditure to dateR6 609 889-00 Completions dateJanuary 25,2007

8. TSHIRELETSONG PLACE OF SAFETY Project descriptionUpgrading and renovations LocationBloemfontein DistrictMotheo EPWP (Y/N)No Source of fundingDepartment of Social Development Submission of the needs list by the department April 22, 2005 Receipt of needs list by implementing agent April 22, 2005 Appointment of consulting engineersArch-M Studio Names of consulting teamArch-M Studio Submission of sketch plans to implementing agents/departments May 16, 2006 Estimated costs Expenditure to date R 61 000 000,00 R5 879 187

9. ESTABLISHMENT OF THABO MOFUTSANYANA SECURE CARE AND ONE STOP CHILD JUSTICE CENTRES Project descriptionNew structure LocationQwa DistrictThabo Mofutsanyana EPWP (Y/N)No Source fundingDepartment of Social Development Submission of needs list by the departmentMay 27, 2006 Receipt of needs list by implementing agentMay 27, 2006 Appointment of consulting engineersJuly 08, 2006 Name of consulting teamDMV Consulting Engineers Submission of sketch plans to implementing agents/department May 11, 2006 Estimated costsR 52 799 488,50 Expenditure to dateR 8 512 924

10. THABO MOFUTSANYANA VICTIM SUPPORT CENTRE Project descriptionNew structure LocationQwa DistrictThabo Mofutsanyana EPWP (Y/N)No Source fundingDepartment of Social Development Submission of needs list by the departmentNovember 21, 2005 Receipt of needs list by implementing agentFebruary 13, 2006 Appointment of consulting engineersMarch 17, 2006 Name of consulting teamIliso Consulting Engineers Estimated costsR 36 472 780-65 Expenditure to dateR 1 900 000,00 (10,89%)

11. WELKOM ONE STOP CENTRE MONDI MINING HOSTEL Project descriptionRenovation LocationWelkom DistrictLejweleputswa EPWP (Y/NNo Source fundingDepartment of Social Development Submission of needs list by the departmentNovember, 2005 Receipt of needs list by implementing agentFebruary, 2006 Appointment of consultsMarch, 2007 Estimated costs Expenditure to date R 12 00 000 R 1 000 000

12. Expenditure trends – 4th quarter Expenditure until 31 March 2007 R23,902 R8,102,660 was spent on leased Office buildings