Eastern Cape Department of Rural Development and Agrarian Reform Expenditure Report

1. Eastern Cape Department of Rural Development and Agrarian Reform3rd and 4th Quarter Expenditure of the 2012/13 financial yearILIMA/LETSEMA CONDITIONAL GRANT 21 May 2013

2. INTRODUCTORY BACKGROUND • The Ilima / Letsema budget (R38 million) was used to plant 5 790 ha of maize and beans in the Province • This program attracted enormous interest country wide. • As a result of the demand for the Cropping Program Department of Rural Development and Land Reform increased the funding with another R38 million, enabling the Province to expand the total area to more than 10 000 ha

3. Quarterly Expenditure for the 2012/13 financial year • R43, 98 million was the available budget for the financial year Quarter Amount Spent ( R ) Spent % 1 1, 448, 000 3,29 2 2, 077, 000 4,72 3 9, 820, 000 22,32 • 25, 546, 000 58,09 TOTAL USED 38, 891, 000 88,43

4. LETSEMA 2012/13 SERVICE DELIVERY

5. OUTCOMES The estimated yield varies from area to area with the highest yield estimated at 12tons per ha in the Western district under irrigation and in the Eastern side of the province with the yield estimated at 7 tons per ha

6. JOBS CREATED The department employed 24 tractor drivers and 20 rangers and paid on the EPWP rates

7. Annual Expenditure trends for the Ilima/Letsema Grant over the four year period (2009/10 to 2012/13)

8. Over/under expenditure • There has always been under expenditure on the Ilima/ Letsema Conditional Grant. • The under expenditure ranges from 19,2% in 2009/10 financial year to 2,1% in 2010/11.

9. Reasons for under expenditure • Procurement and delivery of production inputs is almost always delayed by unforeseen capacity constraints on the part of some suppliers • Moreover, the mechanization contractors sometimes lack implements. • The department is now considering to use term contracts to enhance effectiveness and efficiency and value for money in all the conditional grants

10. DRDAR’s Monitoring Capacity for the 2012/13 financial year • The Eastern Cape Rural Development Agency (ECRDA) and Ntinga were used for the implementation of the program during the previous financial year • Service level Agreements (SLAs) were used to engage these two agencies. • There is room for improvement of these agreements. • Roles and responsibilities need to be better defined • Weekly meetings were held with agencies to report on progress made and to identify bottlenecks • Lessons learnt have been considered during the planning for the next cropping season

11. Reporting • Division of Revenue Act (DORA) are complied with by the Department • The 6 districts, agencies and management meet weekly to consider reports • The reports are then consolidated and submitted to both DRDAR and DAFF.

12. Conditional Grant Business Plans • The business plans for the Ilima/Letsema grant for 2013/14 are ready and have been submitted

13. THANK YOU