PRESENTATION ON CONDITIONAL GRANTS (Land Care) AND COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME (CASP)

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PRESENTATION ON CONDITIONAL GRANTS (Land Care)
AND COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME
(CASP)

• 4th May 2006

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Land Care
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Projects

• 2004 2005
• Klipspruit River and wetlands clean up (Soweto)
• Mamelodi LandCare Resource Centre Permaculture
  training
• Mobilisation of civil society (Klipspruit)
• 2005 2006
• Dinokeng Alien Invasive plants removal

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Land Care Trends
Project Name Allocation ZAR X 103 Expenditure ZAR X 103 Variance explanation
2004-5 ( Total allocation R 1 785 000) 2004-5 ( Total allocation R 1 785 000) 2004-5 ( Total allocation R 1 785 000) 2004-5 ( Total allocation R 1 785 000)
Klipspruit 1 452 1 452 -
Mamelodi 148 0 Delays in signing of MoUs BP by Tshwane
Civil society 185 0 Province informed on additional funding in end of 2004
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Land Care Trends
2005-6 (Total allocation R 2 000 000) R 333 000 roll over 2005-6 (Total allocation R 2 000 000) R 333 000 roll over 2005-6 (Total allocation R 2 000 000) R 333 000 roll over 2005-6 (Total allocation R 2 000 000) R 333 000 roll over
Dinokeng 2 000 2 000
Mamelodi 148 148
Civil society 185 185
Total Landcare spending for 2005/2006 100. Total Landcare spending for 2005/2006 100. Total Landcare spending for 2005/2006 100. Total Landcare spending for 2005/2006 100.
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Non-financial outputs
Klipspruit Mamelodi Dinokeng
Activity Removal of waste Permaculture training Removal of alien vegetation
No of jobs/ beneficiaries 51 jobs created 25 people trained per year 135 jobs created
No of women employed 30 60 81
Partners DoA, JDA, Ward councilors DoA, City of Tshwane DoA, DWAF-WfW
Other outputs 40-50 tons removed pm Skills dev training Part of bigger initiative Value adding secondary industry
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Challenges

• 2004-5
• Expenditure for the mobilisation of civil
  society only undertaken in 2005-6 due to the
  fact that the Department was informed during
  latter part of the 2004-5 year of additional
  funds
• Non-alignment of provincial and local
  municipality process delays in implementation
  of Mamelodi project to 2005-6
• 2005-6
• Delays in signing of MoUs and Business Plans with
  Working for Water.

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Monitoring

• Weekly Site visits to monitor progress on
  operations.
• Declared Weeds and Invader Plants (DWIP)
  committee meetings on a monthly monitors
  progress and financial expenditure.
• Expenditure reports (DoA) monthly.
• DORA (DoA) reports quarterly basis.
• EPWP reports (to GPTRPW, DEAT, DoA)- quarterly
  basis.

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Compliance with monthly reporting

• Challenges of getting monthly reports are
  addressed in DWIP forums and project steering
  committees.
• Cooperative governance partnership with DoA as
  funders, GDACE as managers and DWAFF who assist
  with operations.

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Business plans

• Submitted to the National Department of
  Agriculture.
• Signed in Nov/December.

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CASP
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PURPOSE

• To provide a status report to the Select
  Committee on Finance in respect of the on-going
  Land Care and CASP projects undertaken by GDACE.
• To update the select committee on Finance about
  the implementation of the 2005/06 Land Care and
  CASP projects.
• To highlight the challenges faced by the province
  with regards to the preparations for the project
  plans and ensuring compliance with DORA and the
  funding agreement.

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BACKGROUND - CASP

• The budget for the 2005/6 financial year was R 5
  727 000.
• The grant per farmer is limited to R150 000.00.
• The grant can be higher or lower provided that a
  feasibility study by the Agricultural Economists
  in the Department indicates that the beneficiary
  can generate an equal net income in a reasonable
  time span with the produce from the commodities
  for which the infrastructure is intended.
• The purpose with the CASP conditional grants is
  to provide grants to individual beginner farmers
  for on-farm infrastructure and training.
• 70 is spent on LRAD and 10 on Household Food
  Security and 20 on other small and emerging
  farmers.

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Expenditure pattern
2004/2005 Provincial CASP Expenditure. No rollover. 2005/06 Provincial CASP allocation Total Applications received Total Submitted for Procurement Total Committed (For which Orders were issued) Actual payments Total Amount to be Rolled over
R4,582,000 R 5,727,000 R 6,692,916 R 5,901,403 R 4,860,751 R 1,330,300 R 4 396 700
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CHALLENGES 1

• During 2004/2005 our main challenge was capacity
  constraints.
• (Agriculture has since been elevated to a Chief
  Directorate with three Directors and capacity has
  been expanded by 25).
• Lack of positive collaboration with certain
  service provider who demand upfront payment
  before they can deliver the goods.

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CHALLENGES 2

• Lack of positive collaboration with certain
  service provider who demand upfront payment
  before they can deliver the goods.
• Service providers are reluctant to responsibility
  for delivery of goods.
• Shortage of service providers in Gauteng with
  specialized services as required by applicants.
• The demand for on off-farm infrastructure by
  emerging farmers is more than the available
  budget.

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EXPLANATION OF THE ROLLOVER 1

• The first quarter of the financial year focussed
  on rounding off activities of the 2004/05 CASP
  financial year thus resulting in the delay in the
  commencement of activities for the 2005/06
  financial year.
• Actual procurement commenced in the third quarter
  as we streamlined processes of farmers needs
  identification, identifying compliant service
  providers, sourcing quotations and placing orders.

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EXPLANATION OF THE ROLLOVER

• Coordination and cooperation with service
  providers negatively affected service delivery as
  most service providers requested for upfront
  payment while holding on to orders. This is
  against procurement procedures.
• The delays caused by the service providers who
  mailed invoice resulted in delayed payments.

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PROPOSED REMEDIAL ACTIONS1

• As on 03-05-06 50 actual payments have gone
  through the system.
• The DLA (Department of Land Affairs) provided a
  list of all restitution and LRAD projects in
  Gauteng which should be considered for funding.
• The Department is currently identifying a
  dedicated manager whose focus will be the
  unlocking of the procurement bottlenecks.

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PROPOSED REMEDIAL ACTIONS 2

• The branch is optimistic that upon unlocking
  these bottlenecks we will be able to disburse the
  grants.
• The department will not only focus on Gauteng
  service providers but will also source quotation
  from other provinces.

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Monitoring

• Weekly Site visits by extension officers to
  monitor progress on operations.
• Expenditure reports (DoA) monthly.
• DORA (DoA) reports quarterly basis.

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Conclusion.