Finance and Economic Opportunities

1. 1. Yes. I have been advised by my Head of Department that the following transfer payments were made to the Western Cape Economic Development Partnership (WCEDP) in the 2021/22 financial year by the Department of Economic Development and Tourism (DEDAT):

Month	Amount Transferred
June 2021	R3,475,000.00
August 2021	R3,475,000.00
December 2021	R6,680,000.00
February 2022	R3,475,000.00
Total	R17,105,000.00

 

2. (a) what proportion of these transfer payments comprised funds made available by the Department of the Premier, (b) of the transfer payments in (1), what proportion was initially allocated and/or paid by the Economic Development Partnership to a certain company, whose details have been furnished to his Department for the purpose of his reply, and (c) what was the stated purpose of these allocations or payments in accordance with the relevant transfer payment agreement and business case;

2(a) R2,500,000.00.

(b) I have been advised by the Chief Executive Officer of the WCEDP that, of the transfer payments in (1) the company in question was paid R89,673.00 (excluding VAT) on 3 December 2021.

I have been further advised by the Chief Executive Officer of the WCEDP that a further R860,000.00 has been committed and is due to the company in question for payment by the end of April 2022.

(c) Based on the original 2021/22 Business Plan approved by DEDAT on 28 May 2021 (“the Original Business Plan”), the Transfer Payment Agreement concluded between DEDAT and the WCDEP, dated 23 June 2021, the revised 2021/22 Business Plan approved by DEDAT on 17 November 2021 (“the Revised Business Plan”), and the Addendum to the said Transfer Payment Agreement, dated 7 December 2021, together with inputs received from the Chief Executive Officer of the WCEDP, the stated purpose of the payments made by the WCEDP to the company in question was for the WCEDP’s “collaborative practices for economic recovery and growth” programme.

3. whether the allocations or payments referred to in (2) and/or purposes of these allocations or payments changed at any stage; if so, (a) on what date or dates did this occur, (b) what are the details of these changes (including the changes made to the relevant transfer payment agreement and business case) and (c) why did these changes occur;

2. Yes, an additional allocation of R2,500,000 (see 2(a) above) was made available by the Department of the Premier in the 2021/22 Western Cape Adjustments Budget.

1. I have been advised by my Head of Department that this additional allocation was transferred to the WCEDP on 15 December 2021 as part of the December 2021 Transfer Payment of R6,680,000 listed in (1).

2. The Original Business Plan was revised, and an Addendum was drafted to the Transfer Payment Agreement to update the WCEDP’s “collaborative practices for economic recovery and growth” programme and to set out how the augmented funding made available by the Department of the Premier (as referred to in paragraph 2(a) above) was to be allocated to and used by the WCEDP. Specifically, under the revised Business Plan, the WCEDP’s “collaborative practices for economic recovery and growth” programme contemplates inter alia the WCEDP focusing on building capacity for collaborative practice and the sharing of best practice for collaborating for collective impact. This involves the WCEDP playing a leading role in facilitating and encouraging the formation of new partnerships between relevant sector formation, business organisations and networks, community-based organisations, academic and research networks, citizens and other stakeholders. The focus of these new partnerships is to identify and address challenges experienced by all relevant stakeholders within the context of enhancing economic recovery, job-creation and growth efforts. The funding referred to in paragraph 2(a) above was required to support the WCEDP to expand the number and scale of collaborative practices for economic recovery and growth by specifically establishing a multi-stakeholder mobility partnering platform to find collaborative ways to address shortcomings in the transport and mobility system and by developing a series of partnering toolkits for municipalities and their external stakeholders in business and communities.

 

3. As per the Appendix 1 of the Revised Business Plan:

“In the light of the COVID-19 pandemic and its impact on lives and livelihoods, combined with the recent unrest in other provinces amidst the ongoing legacy of poverty and unemployment, citizens in the Western Cape face major challenges. These include service-delivery gaps and a rise in the drivers of crime and violence and unemployment. To compound these challenges, there is a widespread lack of hope in South Africa’s future that is impacting business confidence and the mental wellbeing of individual citizens. The pandemic, and related economic and social hardships, have eroded trust in institutions, including government.

The programme run by the EDP focuses on collaborative practices for economic recovery and growth. This programme involves building capacity for collaborative practice and the sharing of best practice for collaborating for collective impact. Through this programme, the EDP plays a role in facilitating and encouraging the formation of additional partnerships between relevant sector formations, business organisations and networks, community-based organisations, academic and research networks, citizens and other stakeholders, including transversal and inter-governmental partnerships within government, and between government and non-state actors, to contribute to (a) the development of relevant economic and market intelligence; (b) the enhancement of economic system performance and monitoring; and (c) the implementation of economic vision, strategy, and delivery.

Initially, Programme 5 was the smallest of the EDP’s five programmes, focusing on partnering and partnerships for integrated service delivery, and contributing to the design and roll out of the national Social Employment Fund (SEF), with a relatively small proportion of the original budget allocation. It has become clear that regional economic recovery will need greater and more intense levels of partnering and collaboration, particularly with regard to the performance of the newly-elected municipalities in conjunction with their local business, community and academic partners.

Accordingly, the EDP has requested an additional R2.5m to expand the number and scale of collaborative practices for economic recovery and growth. The EDP will focus on two specific areas of partnering:

1. A high-performance regional economy depends on a well-functioning transportation and mobility system. The EDP will, through a process of consultation with relevant public, private and community stakeholders, establish a multi-stakeholder mobility partnering platform to find collaborative ways to address shortcomings in the transport and mobility system;

2. Well-functioning municipalities are a critical component of a high-performance regional economic system. To carry out their functions, municipalities need to be able to successfully partner with their external stakeholders in business and communities. The EDP will develop a series of partnering toolkits for municipalities and their partners.”

4. on what date did the Economic Development Partnership appoint a certain company, whose name has been furnished to his Department for the purpose of his reply, to carry out the institutional refresh project initiated by the Premier and his Department in the 2021/22 financial year;

3. I have been advised by the Chief Executive Officer of the WCEDP that the company was not appointed by the WCEDP to carry out the institutional refresh project initiated by the Premier and his Department in the 2021/22 financial year.

I have been advised by the Chief Executive Officer of the WCEDP that the company was appointed on 01 October 2021 to provide advisory support to the WCEDP to deliver the “collaborative practices for economic recovery and growth” programme as detailed in the Original Business Plan and Transfer Payment Agreement. Thereafter, company was appointed for a second time on 01 February 2022 to support the WCEDP to deliver the “collaborative practices for economic recovery and growth” programme as detailed in the Revised Business Plan and the Addendum to the Transfer Payment Agreement.

5. at the time of the appointment referred to in (4) was the institutional refresh project initiated by the Premier and the Department of the Premier contemplated by the transfer payment agreement or agreements and business case or cases referred to in (2) and/or (3);

5.       No, I have been advised by my Head of Department that the Western Cape Government’s institutional refresh project is not referred to in the Original Business Plan, the Revised Business Plan, the Transfer Payment Agreement concluded between DEDAT and the WCDEP, dated 23 June 2021, and the Addendum to such Agreement, dated 7 December 2021.

6. when did this company commence work on the institutional refresh project initiated by the Premier and the Department of the Premier in the Department’s 2021/22 financial year using funding transferred by his Department to the Economic Development Partnership;

6.       Refer to the response to (4) above.

7. what projects relating to the Western Cape Government, other than the institutional refresh project, did this company undertake using funds transferred to the Economic Development Partnership by his Department during the 2021/22 financial year;

7.       Refer to the responses to (2) and (3) above.

8. (a) when did the appointment of this company by the Economic Development Partnership to undertake the Premier’s institutional refresh project end in the Department’s 2021/22 financial year and (b) why did it end;

8.       Refer to the response to (4) above.

9. how much of the funds transferred by his Department to the Economic Development Partnership in the 2021/22 financial year was paid by the Economic Development Partnership to this company for the Premier’s institutional refresh project?

9.         Nil. See the response to (4) above.