1. 1 PRESENTATION expenditure for the 2008/09 financial year

2. 2 Actual Expenditure for 08/09 Programme2008/09 Budget R’000 2008/09 Actual R’000 Under- spending Administration682 088681 758330 Water resource management 3 499 8123 001 347498 465 Water Services2 348 0312 341 8166 215 Forestry506 685506 64837 Total7 036 6166 531 569505 047

3. 3 Subprogramme2008/09 Adjusted Budget R’000 2008/09 EXPENDI- TURE % SPENT Management97 188 100% Corporate Services529 834529 50499,9% Financial Management 55 066 100% Total682 088681 75999,9% EXPENDITURE: 31 MARCH 2009 administration

4. 4 Chief Directorate2008/09 Adjusted Budget R’000 2008/09 EXPENDI- TURE % SPENT DDG: Policy and Regulations2 3803 155133% CD: Resource Directed Measures22 55927 829123% CD: Institutional Oversight69 41176 200110% CD: Integrated WR Planning82 24596 594117% CD: Stra Co/inter’al relations)36 44235 60798% CD: Information Management139 650145 911104% CD: Water Use and Conservation68 89864 59094% National Water Resource Infr1 875 6221 328 09671% EXPENDITURE:31 MARCH 2009 WRM (P&R)

5. 5 EXPENDITURE: 31 MARCH 2009 WRM (ops) REGIONSEXPENDITURE AS 31 MARCH 2009 BUDGET VARIANCE% BUDGET SPENT Eastern Cape51 86360 4588 59585.8 Free State12 76911 787(982)108.3 Gauteng13 87914 40252396.4 KZN29 71326 489(3 224)112.2 Limpopo77 48456 148(21 336)138.0 Mpumalanga26 74617 552(9 194)152.4 Northern Cape21 67521 7457099.7 North West9 31110 4261 11589.3 Western Cape47 43641 105(6 331)115.4 Head Office (Ops)24 43547 42622 99151.5 TOTAL OPERATIONS315 311307 538(7 773)102.5 Working for Water479 276477 591(1 685)100.4 Working on Fire114 416112 658(1 758)101.6

6. 6 Chief Directorate2008/09 Adjusted Budget R’000 2008/09 EXPENDI- TURE % SPENT Provisioning Policy3 1232 49680% Water Sector Policy51 53858 995114% Institutional Policy9 8199 962101% African Initiative105 100% Water Service Administration8 9898 65396% EXPENDITURE: 31 MARCH 2009 WS (P&R)

7. 7 REGIONSEXPENDITURE AS 31 MARCH 2009 BUDGET VARIANCE% BUDGET SPENT KZN9 37711 6532 27680.5 Mpumalanga22 19917 955(4 244)123.6 Eastern Cape36 40946 46010 05178.4 Northern Cape10 39212 0291 63786.4 Western Cape7 0946 789(305)104.5 North West9 15918 5159 35649.5 Free State-3 6847 07010 754-52.1 Limpopo97 42578 089(19 336)124.8 Gauteng7 93311 8743 94166.8 Head Office Operations81 38294 03912 65786.5 TOTAL REGION OPERATIONS279 378304 47325 09591.8 Ops of Water Schemes1 322 3661 383 07060 70495.6 Regional Bulk447 888447 700(188)100.0 Schools & Clinics198 911210 00011 08994.7 EXPENDITURE: 31 MARCH 2009 – WS (OPS)

8. 8 Chief Directorate 2008/09 Adjusted Budget R’000 2008/09 EXPENDI- TURE % SPENT DDG: Forestry2 5054169166% CD: Forestry Regulation and Oversight 37 98834 27790% CD: Forestry Development10 40710 808104% EXPENDITURE: 31 MARCH 2009 FORESTRY (P&R)

9. 9 Chief Directorate 2008/09 Adjusted Budget R’000 2008/09 EXPENDI- TURE % SPENT Forest Management Support8 2935 47566% Limpopo48 81860 943125% Mpumalanga56 85654 65896% Eastern Cape213 438176 93183% Kwazulu Natal95 662111 239116% North West5 4826 908126% Gauteng1 5792 148136% Western Cape3 65031 388860% Northern Cape4 5283 41976% Free State6 2738 187131% EXPENDITURE: 31 MARCH 2009 FORESTRY (OPS)

10. 10 De Hoop Dam Project

11. 11 REASON FOR UNDERSPENDING The unspent budget allocation of R505,047 million is mainly due to the under expenditures on the De Hoop Dam project. –The Department requested the National Treasury to utilise the funds that could not be spent on this project for other projects (Nandoni and Inyaka water treatment works and the Hluhluwe regional water scheme), but the request was not approved- R265m –Unpaid invoices as at 31 March 2009: R227m Action taken by the department: –The Department requested the National Treasury to roll- over R272,3 million of the underspending to the 2009/10 financial year for the continuation of the De Hoop Dam project.

12. 12 Explanation Disbursements of the funds iro De Hoop was not made as a result of the delays in the conclusion of the negotiations to finalise a memorandum of agreement with the 23 different mines. The memorandum records the principles for the sharing of the project cost and was essential to conclude the negotiations prior to the commencements with preparations for project implementation. Against this situation, the DWA requested the NT for approval to utilised the unspent funds for the benefit of other bulk water supply infrastructure projects that were nearing completion. The necessary approval was not received from the National Treasury and consequently these funds remained unspent within the Vote while WTE continued to implement the relevant bulk water services projects using funds meant for recurrent expenditure items. Had the approval from NT been received R262,67 million would have been paid out to the WTE to augment the capex on other bulk water infrastructure projects.