18 February 2025

Hon. Nkopane  N.S.

The African National Congress (ANC) leading the Government of National Unity (GNU) understands the importance of transport. Connecting communities, promoting economic progress and permitting trade all depend on transportation. It makes it possible for people and things to move, which is necessary for day-to-day living, corporate activities and international connectivity. Access to employment, healthcare, education and other essential services can all be improved by effective transportation systems, which will ultimately raise people’s quality of life. We support the transport 2024/2025 second quarter expenditure of the department of transport.

 With regards to the administration program, the expected R256 million, the administration program spent R265.6 million of its allocation resulting in accelerated spending of R94.4 million (3.7%). When it came to Integrated Transport Planning the department, out ofits projected R45.1 million, the department spent R53.9 million (56.6%). This was 19.6% approximately R8.8 million more than anticipated. Invoices from the prior fiscal year that were paid in the current fiscal year, as well as goods and services related to advertising, venues and facilities, were the primary causes of this. The increased cost was also a result of transfers and subsidies, including leave gratuity given to departing Department employees. This program was the worst performing program for the reviewed quarter, despite the excessive spending in relation to the goals to be met.

You must be reminded that the rail transport program out of the predicted R9.7 billion, the department spent R9.7 billion (49.9%) of its allotment. The initiative spent R11.3 million (0.1%) less than anticipated, yet it still indicates a reasonably aligned expenditure and draying aim. This was mostly due to goods and services for consultants, especially on the National Rail Master Plan and the establishment of Transport Economic Regulator. Against a predicted spending of R23.4 billion, the       
road transport program had already spent R23.4 billion (or 53.4%) of its allocation by the end of the Second Quarter of 2024–2025. The initiative spent R80.9 million (or 0.3%) less than anticipated, which is comparatively in line with the Department’s predictions. This resulted from RTIA transfers and subsidies for the AARTO nationwide rollout that were put on hold because of implementation delays.

Another factor contributing to the delayed spending was the expenditure on goods and services, specifically the consultants for the Decade of Action for Road Safety. Against a budgeted budget of R249.8 million, the Department spent R235 million (43.2%) on the Civil Aviation Transport program. This means that R14.9 million (or 6% less) was spent than expected. The unpaid balance for the Watchkeeping Services and National Aviation Transformation Strategy was a major factor in the lower than anticipated spending level. Due to unpaid invoices to the nonprofit organization for the Off-Road Rescue Unit, transfers and subsidies were also spent less than anticipated. Maritime Transport spending exceeded the budget by R2.2 million (2.3%), as the department spent R95.5 million (49.3%) of its allocation by the end of the reviewed period compared to a predicted R93.3 million. Compensation of Employees was the primary responsibility for the spending because of the recent appointments. Spending exceeded budget by R2.2 million (or 2.3%) on public transport, the Department spent R95.5 million (49.3%) of its allocation by the end of the reviewed period compared to a predicted R93.3 million. The Committee will keep an eye on the department’s performance in relation to this budget and its plans.

I thank you