ROADS AND TRANSPORT PORTFOLIO COMMITTEE

ADOPTED COMMITTEE OVERSIGHT REPORT ON

BUDGET VOTE 9: GAUTENG DEPARTMENT OF ROADS AND

TRANSPORT OF THE APPROPRIATION BILL

31ST JULY 2019

TABLE OF CONTENTS PAGE No:

ACRONYMS 3

EXECUTIVE SUMMARY 4-6

INTRODUCTION 7

1. PROCESS FOLLOWED 7

2. COMMITTEE’S ASSESMENT OF THE BUDGET VOTE 8-14

2.1 Overall Assessment

2.2 Assessment per Programme

3. STAKEHOLDER SUBMISSIONS 14

4. CONCERNS 15

5. RECOMMENDATIONS 15-16

6. ACKNOWLEDGEMENTS 16

7. ADOPTION 16

ACRONYMS

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BRT BUS RAPID TRANSPORT

DLTCs DRIVER LICENSE TESTING CENTRES

DNO’s DO NOT OPERATE

EPWP EXPANDED PUBLIC WORKS PROGRAMME

FY FINANCIAL YEAR

GMA GAUTRAIN MANAGEMENT AGENCY

GTA GAUTENGTRANSPORT AUTHORITY

GPG GAUTENG PROVINCIAL GOVERNMENT

HOD HEAD OF DEPARTMENT

ITMP25 25 YEAR GAUTENG INTEGRATED TRANSPORT MASTER PLAN

MEC MEMBER OF EXECUTIVE COMMITTEE

NDOT NATIONAL DEPARTMENT OF TRANSPORT

PRASA PASSENGER RAIL AGENCY OF SOUTH AFRICA

PRMG PROVINCIAL ROADS MAINTENANCE GRANT

PTOG PUBLIC TRANSPORT OPERATIONS GRANT

TOLABs TRANSPORT OPERATING LICENSE ADMINISTRATIVE BODYS

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EXECUTIVE SUMMARY

The Chairperson of the Roads and Transport Portfolio Committee, Honourable D. Dakile,

tables the Committee's Report on Budget Vote 9 of the Appropriation Bill as follows:

In the current financial year, the Committee noted that the Department has been

allocated a budget of R7 708 630 000 financed through the Equitable share amounting to

R4 498 664 000 (58%) and Conditional grants R3 209 966 000 (42%). The Committee

noted that the budget allocation decreased by an amount of R405 583 000 (5%) compared to previous financial year. The budget allocation for Administration, Transport

Regulation, Transport Operation and Gautrain programmes increased whilst the

allocation for Transport Infrastructure decreased compared to previous financial year.

Taking into consideration the budget cut in the Transport infrastructure programme, the

core service delivery programme, the Committee is of the view that there were projects

that were not allocated infrastructure budget due to the lack of their state of readiness.

On the construction and maintenance of road infrastructure, the Committee noted that

the Department has planned to complete designs, maintain, rehabilitate and construct a

number of roads in the province. These include multi-year construction projects of R82

Phase 3 from Walkerville to De Deur, K69 Solomon Mahlangu from R104

Bronkhorstspruit Road to K54 in Mamelodi, K54 from Mamelodi Tsamaya Rd to R104

Pretoria Bronkhort Rd as well as rehabilitation of P39/1 Diepsloot to Muldersdrift and

P175/1 from Vanderbijlpark to Potchefstroom Phase 2. The Committee urges the

Department to ensure that proper project and contract management should be adhered

to in the implementation of these projects in line with project timelines and costs.

On the construction of K46 William Nicol and Sebokeng DLTC & TOLAB, the Committee

noted that the re-advertisement of tenders has been planned for the current financial

year and commencement of construction is earmarked for April 2020. The Committee is

concerned over the further delays in the above-mentioned projects. In relation to K46

William Nicol, that the Department needs to resolve three issues which includes, the

offering of a public apology to the community of Diepsloot at large, resolve on the

payment of monies owed by the previous contractor to sub-contractors and employees

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as well as the implementation of the findings of the Provincial Government investigation

on the project. This may assist in minimising the challenges that continue to surround

the project and pave the way for a new chapter at the proposed commencement date of

the project.

On the construction of the Vereeniging Intermodal Facility, the Committee noted that the

Department had planned to conduct a conditional assessment and provide options on

the best way to proceed with the project and the assessment report is expected in March

2020. The Committee is concerned over the further delays in the above-mentioned

project and would like to encourage the Department to prioritise internal audit of technical

skills required for the implementation of all infrastructure projects. This is because the

Committee is of the view that the failure of this project was mainly because of lack of

internal technical skills required for projects of the nature.

The Committee noted that the allocation for Public Transport Operations Grant (PTOG)

from the National Government has increased compared to previous financial year by R60 063 000 (2,53%). According to the Department, the processes on new tendered

contract, which will take into account various modes as part of one contract, are on-going

whilst negotiated contracts, targeting the DNO’s where they exist and 30% for the

general contracts where the taxi industry, small bus operators and women in transport

can partake, are expected to be finalised by March 2020. The Committee would like to

urge the Department to ensure that all planned targets are implemented in line with set

timelines as the negative impact on commuters is severe.

In the Transport Regulation programme, the Committee noted that there are no

infrastructure projects planned to be implemented on DLTCs and TOLABs until the

infrastructure planning unit completes the Master Plan for Transport Services Centres

that will guide location of the centres and the form they should take for effective service

delivery. The Committee further noted that the Department will be embarking on an audit

and mapping of taxi routes to develop a map of common reference for both industry and

the Department.

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On the Gautrain Management Agency, the Committee noted that the allocated budget for

the current financial year has been increased compared to the previous financial year by

R208 046 000 (10,69%) and is earmarked for the operational maintenance and

capacitation of the current system. The Committee also noted that the agency has been

appointed as the interim managing agency in the process of establishing Gauteng

Transport Authority (GTA) by the second half of 2019 which will be responsible for driving

the set Provincial vision of integrating the Gautrain, BRTs and metro rail into a modern,

efficient, reliable, affordable and integrated single mass transit system. The Committee

further noted that the agency will lead the process of reviewing the 25-Year Integrated

Transport Master Plan to take into consideration the Gauteng expansion plan and the

latest household travel survey data.

With regards to g-fleet Management, the Committee noted that the entity has planned

targets and confirmed a budget allocation of R944 620 218 for the current financial year

marking an increase of R121 672 000 compared to the previous financial year. The

Committee noted that the allocation will cater for the the acquisition of motor vehicles,

vehicle repairs and maintenance and provision of a comprehensive vehicle tracking

solution.

In conclusion, the Committee urges the Department and its entities to exercise proper

project and contract management and maintain a high level of efficiency and

effectiveness in delivering on key infrastructure projects.

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INTRODUCTIONThe Committee report covers the alignment of the Department’s appropriation with planned

outputs. The report also assesses the link between the Department’s strategic objectives and

how they contribute to national and provincial outcomes.

Budget Vote 9 is the Gauteng Provincial Government’s plan to deliver services to the people

according to its commitment on transport infrastructure and operations. The Gauteng Department

of Roads and Transport’s overall goal is to provide a world class roads and transport

infrastructure networks and systems that facilitate seamless mobility of goods and people within

Gauteng. Its purpose is to provide an environmentally sustainable road infrastructure and

integrated transport systems and services that are reliable, accessible, safe, and affordable and

which promote socio-economic development in Gauteng.

1. PROCESS FOLLOWED The MEC for Finance tabled the Gauteng Province 2019/20 FY Budget in the Legislature. The

Speaker referred the Vote 9 Budget Appropriation for 2019/20 FY to the Committee, in

accordance with Standing Rule 220(2), for consideration and reporting. The Committee

Researcher prepared and tabled an analysis for discussion and questions emanating from

Budget Statement to the Committee. Following that, the Department tabled the details of the

budget and responses to questions raised to the Committee. The Committee deliberated on and

adopted its oversight report. The report was then tabled for consideration and adoption by the

House.

2. COMMITTEE’S ASSESSMENT OF THE BUDGET VOTE

2.1 OVERALL ASSESMENT2.1.1 Departmental ReceiptsThe Committee noted that the Department received R4 498 664 000 (58%) allocation

from the Equitable share, and R3 209 966 000 (42%) conditional grants from the

National Department of Transport. The conditional grants consist of the Public Transport

Operations Grant (PTOG) amounting to R2 436 074 000 mainly for the bus subsidy

programme, Provincial Roads Maintenance Grant (PRMG) amounting to R767 506 000

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received for routine maintenance of the provincial road network and EPWP Infrastructure

Grant amounting to R6 386 000.

The Committee noted that the allocation of financial resources has decreased from R8 114 213 000 in 2018/19 FY to R7 708 630 000 in current financial year, marking a

decrease of R405 583 000 (5%). The Committee further noted that the Budget allocation

has been reduced in the Transport infrastructure programme, which is the key service

delivery programme of the Department.

2.1.2 Departmental RevenueThe Committee noted that the Department of Roads and Transport, as the Province’s

main generator of revenue, estimated revenue to be collected in the current financial

year amounts to R4 110 915 000 from all the revenue items, with the main contributor to

revenue being motor vehicle registration and licensing fees estimated at R4 025 181 000 (98%). The Committee also noted that the estimated revenue is projected to increase

over the MTEF period due to the growth in vehicle population and higher than anticipated

application of new and renewal of motor vehicle licenses.

2.1.3 Budget Estimates per ProgrammeBudget Vote 9 funds five programmes namely: Administration, Transport Infrastructure,

Transport Operations, Transport Regulation and Gautrain Rapid Rail Link. The table

below reflects the amount appropriated to each programme.

Table 01: Budget Estimation per Programme

Programme (R'000) 2019/20

Change 2018/19 - 2019/20

% Change 2018/19 - 2019/20

Change 2019/20 - 2020/21

% Change 2019/20 - 2020/21

1. Administration 370 347 15 201 4,28% 24 523 6,62%

2. Transport Infrastructure 2 155 661 (715 549) (24,92%) 467 667 21,69%

3. Transport Operations 2 688 745 49 827 1,89% 186 052 6,92%

4. Transport Regulation 340 563 36 892 12,15% 30 668 9,01%

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5. Gautrain 2 153 314 208 046 10,69% 118 432 5,50%

Total 7 708 630 (405 583) (5,00%) 827 342 10,73%

Source: Research Analysis and Budget Statement 2019/20 FY

The Committee noted that the budget for the Administration, Transport Regulation,

Transport Operations and Gautrain programmes have been increased whilst the budget

allocation for Transport Infrastructure programme has been decreased in the current

financial year. The Committee is concerned over the budget reduction of R715 549 000 (24,92%) in the programme noting the need for enhanced delivery on the design, construction and maintenance of roads infrastructure in the province.

2.1.4 Payments and Estimates per Economic ClassificationIn terms of the economic classification; the Committee noted that 62% of the total

allocation goes to transfers and subsidies with an allocation of R4 779 504 000; the

second largest share goes to current payments with an allocation of R2 252 028 000,

representing 29%; while Payment for Capital Assets constitutes 9% of the allocation

amounting to R677 098 000.

2.2 Assessment per Programme 2.2.1 Programme 1: AdministrationThis programme provides the overall management and administrative support function

for the Office of the Member of Executive Committee (MEC) and the Department. The

programme objectives include rendering advisory, secretarial, parliamentary and

administrative office support services to the MEC; rendering strategic support to the

Department as well as to manage personnel, procurement, finance, administration and

related support services.

The total appropriation for the programme is R370 347 000 which will fund four sub-

programmes namely: Management, MEC’s Office, Corporate Support and Departmental

Strategy. The Committee noted that the allocation increased by an amount of R15 201 000 (4,28%) compared to previous financial year and this has been attributed to

improvements in the condition of service, as well as goods and services for the

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operational requirements of the units. The Committee further noted that the allocation for

the programme will increase over the MTEF period.

2.2.2 Programme 2: Transport InfrastructureThe programme entails supporting social empowerment and economic growth by the

promotion of accessibility and the safe movement of people, goods and services through

the delivery and maintenance of transport infrastructure that is sustainable, integrated

and environmentally sensitive. Key outputs and service delivery measures for the

programme are upgrading and maintenance of provincial road and transport

infrastructure.

The programme funds five sub-programmes namely: Infrastructure Planning,

Infrastructure Design, Construction, Maintenance and Programme Support Infrastructure.

The Committee noted that the total appropriation for this programme amounts to R2 155 661 000 marking a decrease of R715 549 000 (24,92%) compared to the previous

financial year due to the delays experienced in the open tender process for several high-

value construction projects, which meant that Treasury could not allocate budget as there

was no clear state of readiness. The Committee is concerned over the budget reduction in the programme and the impact on the EPWP jobs in line with the Honourable Premier’s SOPA February 2019. The Committee also noted that the

programme’ s allocated budget is expected to increase over the MTEF period.

The Committee noted that the Department has planned to implement a number of

construction and maintenance projects, these also include projects carried over from the

previous financial year and multi-year projects to be completed within the MTEF period.

The projects include the construction of R82 Phase 3 from Walkerville to De Deur, K69

Solomon Mahlangu from R104 Bronkhorstspruit Road to K54 in Mamelodi, K54 from

Mamelodi Tsamaya Rd to R104 Pretoria Bronkhort Rd as well as rehabilitation of P39/1

Diepsloot to Muldersdrift and P175/1 from Vanderbijlpark to Potchefstroom Phase 2.

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The Committee also noted that regarding construction of K46 William Nicol, the

Department has engaged in the process of re-advertising the tender and construction is

expected to commence by April 2020. The Committee is concerned over the further delays in the above-mentioned projects and the negative impact on the current

state of the project like waste dumping and criminal activities on the site. In

relation to K46 William Nicol, the Committee noted that the Department needs to resolve

three issues which includes, the offering of a public apology to the community of

Diepsloot at large, resolve on the payment of monies owed by the previous contractor to

sub-contractors and employees as well as the implementation of the findings of the

Provincial Government investigation on the project. This may assist in minimising the

challenges that continue to surround the project and pave the way for a new chapter at

the proposed commencement date of the project.

2.2.3 Programme 3: Transport OperationsThe Transport Operations programme entails planning for, regulating and facilitating the

provision of integrated land transport services to enhance mobility of all communities.

The objectives of this programme are to manage the integration of land transport

contracts and to manage, co-ordinate and facilitate transport safety and compliance in all

modes.

The Committee noted that the total allocation for the programme for the current financial

year is R2 688 745 000 marking an increase of R49 827 000 (1,89%) compared to the

previous financial year. The largest share of this programme’s allocation goes to Public

Transport Services amounting to R2 680 190 000 and the allocation caters for the Bus

subsidy contracts. The Committee also noted that the allocation for goods and services

is expected to increase over the MTEF period because of the increase allocations for

Integrated Fare Management System, a 25-Year Integrated Transport Master Plan

(ITMP25) linked project that the Department is implementing with the support of

Gautrain.

The Committee noted that the allocation for Public Transport Operations Grant (PTOG)

from the National Government has increased compared to previous financial year by R60 063 000 (2,53%). The Committee further noted that the new tendered contracts will take

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into account various modes as part of one contract as informed by an Integrated Public

Transport Network Designs (IPTN) whilst negotiated contracts, will again be informed by

the same IPTN template, targeting the DNO’s where they exist and 30% for the general

contracts where the taxi industry, small bus operators and women in transport can

partake. According to the Department, the processes on new tendered contracts are on-

going whilst negotiated contracts are expected to be finalised by March 2020.

On the construction of Vereeniging Intermodal Facility, the Committee further noted that

the Department has planned to conduct a conditional assessment and provide options on

the best way to proceed with the project and the assessment report is expected in March

2020. The Committee is concerned over the lack of technical skills within the Department to provide proper contract and project management since the inception of the project. The Committee is also concerned over the continuous delays and the negative impact on the current state of the projects like vandalism as there is no security deployed within the project currently.

2.2.4 Programme 4: Transport RegulationThe programme entails the provision of a safe environment through the regulation of

traffic on public infrastructure, limited law enforcement, implementation of road safety

education and the registration and licensing of vehicles and drivers. The programme’s

objectives are to monitor and control registration and licensing of all motor vehicles and

to render services regarding the administration of applications in terms of the National

Road Traffic Act (Act 93 of 1996); implement laws and regulations relating to vehicle

registration and licensing, manage, approve and control the registration of transport

operators and the issuing of all licenses and permits required in terms of legislation and

manage, approve and control the registration of transport operators and the issuing of all

licenses and permits required in terms of legislation.

The total allocation for the programme is R340 563 000 marking an increase of R36 892 000 (12,15%) compared to the previous financial year mainly for improvement of

capacity services in the Driver License Testing Centres (DLTCs) and Transport Operating

License Administrative Board (TOLAB) in line with the revised organisational structure.

The programme achieves its objectives through two sub-programmes namely, Transport 12

Administration and Licensing with an allocation of R200 650 000 (59%) and Operator

License and Permits with an allocation of R139 913 000 (41%).

The Committee also noted that regarding the construction of Sebokeng DLTC and

TOLAB, the Department has engaged in the process of re-advertising the tender and

construction is expected to commence by April 2020. The Committee is concerned over the continuous delays and the negative impact on the current state of the project like vandalism as there are no security services deployed within the project currently. According to the Department, no infrastructure projects have been planned to

be implemented on DLTCs and TOLABs until the infrastructure planning unit completes

the Master Plan for Transport Services Centres that will guide where these centres must

be situated and what form they should take for effective service delivery.

The Committee further noted that the Department will be embarking on an audit and

mapping of taxi routes to develop a map of common reference for both industry and the

Department.

2.2.5 Gautrain Rapid Rail LinkThe Gautrain Rapid Rail Link programme is a special project that seeks to plan for,

design and construct the Rapid Rail Link and to ensure its implementation and efficient

management. The programme’s objectives are to manage and oversee the rail link in

terms of the concession agreement.

The total allocation for the Gautrain in the current financial year is R2 153 314 000 mainly

for the operational phase of the project as well as the payment of the patronage

guarantee cost. The budget for Gautrain has been increased by R208 046 000 (10,69%) compared to the previous financial year and is expected to increase over the MTEF

period.

The Committee also noted that the agency has been appointed as the interim managing

agency in the process of establishing Gauteng Transport Authority by the second half of

2019. The transport authority will be responsible for driving the set Provincial vision of

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integrating the Gautrain, BRTs and metro rail into a modern, efficient, reliable, affordable

and integrated single mass transit system. The Committee further noted that the agency

will lead the process of reviewing the 25-Year Integrated Transport Master Plan to take

into consideration the Gauteng expansion plan and the latest household travel survey

data.

2.2.6 G-fleet Management

The entity’s goals are to achieve and sustain effective client relations, provide clients with

fleet services, develop human capital to support service delivery, streamline and

automate business processes for improved efficiency, achieve effective internal controls

and contribute to 10 Pillars of the Gauteng Province.

The Committee noted that the approved budget for the entity amounts to R993,700 000 for the current financial year marking a decrease of R45 831 000 (6%) compared to the

previous financial year. In terms the approved budget per programme, the Committee

noted the entity realizes its mandate through four programmes namely; Client

Management Services, Corporate Governance and Financial Management, Financial

Services & Operation and Corporate Services.

In the current financial year, the Committee noted that the entity will focus on the

acquisition of motor vehicles, vehicle repairs and maintenance, provision of a

comprehensive vehicle tracking solution and implementation of infrastructure project of

the turnaround strategy to ensure continuous rejuvenation of the entity.

3. STAKEHOLDER SUBMISSIONS

The stakeholders and members of the public present in the meeting submitted the

following submissions: -

Appealed for the re-introduction of Bus subsidised services in Meyerton, Midvaal and

Ekurhuleni;

Appealed for the monitoring of subsidised bus services in Mamelodi as services were not

satisfactory due to shortage of buses;

Appealed for the consideration of the re-introduction of Metrorail services between

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Pretoria and Hammanskraal;

Appealed to the MEC to engage with North-West and National Government on the poor

services rendered by the North-West Star bus company in the area as well as the

negative impact on commuters who suffer job losses;

Appealed to the Department to consider introduction of subsidy for other modes of

transport e.g. minibus taxis;

There is a need for an engagement with PRASA Metrorail on rail challenges experienced

in the Province and proposed remedial actions;

4. CONCERNSThe Committee is concerned about:

4.1 The budget reduction in the Transport Infrastructure programme and the impact

on the EPWP jobs in line with the Honourable Premier’s SOPA February 2019

as well as on road capacity.

4.2 The lack of leadership and technical skills within the Department to provide

proper contract and project management since the inception of the Vereeniging

Intermodal Facility.

4.3 The continuous delays in the construction of K46 William Nicol and the negative

impact on the current state of the project like waste dumping and criminal

activities on the site.

4.4 The continuous delays and the negative impact on the current state of

the Vereeniging Intermodal and Sebokeng DLTC projects like vandalism as there

are no security services deployed within the project currently.

5. RECOMMENDATIONSThe Committee recommends that the Department should provide a detailed report by 30th August 2019:5.1 On the infrastructure projects that were not allocated budget by Provincial

Treasury due to lack of state of readiness, inclusive of EPWP jobs planned on

the projects and impact on road capacity.

5.2 On the proposed plan to conduct an internal skills audit to capacitate the

Department with technical skills required for the implementation of15

infrastructure projects.

5.3 On the proposed plan to resolve on the payment of monies owed by former

contractor

to sub-contractors and employees on K46.

5.4 On the proposed plan to implement the findings of the Provincial Government

investigation report on K46 William Nicol.

5.5 On the plans in place to ensure the K46 William Nicol project does not turn into a

dumping and crime site.

5.6 On the proposed maintenance plan on the currently utilised part of the K46

William Nicol Drive.

5.7 On the plans in place to prevent vandalism of property within the Vereeniging

Intermodal facility and Sebokeng DLTC & TOLAB.

6. ACKNOWLEDGEMENTSThe Committee's gratitude goes to the Honourable MEC M. Mamabolo, Acting HOD M.

Mampuru and Senior Managers and Officials from the Department of Roads and

Transport, Gautrain Management Agency and g-fleet Management for their co-operation.

Gratitude goes to Members: Ms. R. Kekana, Ms. M. Mosupyoe, Mr. P. Mabunda, Mr. F.

Nel, Mr J. Engelbrecht, and Mr M. Ledwaba for their deliberations and commitment

during the budget process.

On behalf of the Committee, the Committee's appreciation and gratitude also goes to the

following persons: Group Committee Coordinator, Mr. T. Bodibe; Researcher Mr. F.

Thaba; Committee Coordinator Mr. S. Mthiyane; Committee Administrator, Ms. H.

Mtshizana; Hansard Recorder Ms. N. Zondo; Information Officer, Mr L. Ncume; Media

Officer, Ms T. Nzuke; Public Participation Officer, Mr. B. Dhlomo and Service Officer, Ms.

S. Sithole for their devoted assistance.

7. ADOPTION After due consideration, the Roads and Transport Portfolio Committee adopted the report

on Budget Vote 9 of the Appropriation Bill for 2019/20 FY.

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In terms of Rule 117(2)(c) read together with Rule 164, the Portfolio Committee on

Roads and Transport recommends that the report on Budget Vote 9 of the Appropriation

Bill for 2019/20 FY be adopted, taking into account the concerns and recommendations

tabled in this report.

-------------------------------------------------------Hon. D. DakileChairperson: Roads and Transport Portfolio Committee

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