REPORT ON THE SUPPLEMENTARY APPROPRIATION (2018/2019) BILL, 2019
THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER
National Assembly Phone: +266 22323035 P. O. Box 190 Fax: + 266 22310434
On Monday 21st October, 2019, the Hon. Minister of Finance tabled the Supplementary Appropriation (2018/2019) Bill, 2019 in the House. The Bills were referred to the Portfolio Committee on the Economic and Development Cluster for consideration in terms of Standing Order No. 51 (5). The Committee invited the Ministry of Finance to a briefing session in accordance with Standing Order No. 101 (2).
The Committee, therefore, presents this Report to the House for consideration.
2.0 MINISTERIAL BRIEF
The Ministry of Finance presented a brief to the Committee on 29th October, 2019. It was indicated that the Bill is introduced in accordance with section 112 (3) (a) and (3) (b) and section 114(1) and 114 (2) of the Constitution of Lesotho.
The purpose of the Bill is to make supplementary provision for the amount of M1, 192,028,075 which was issued from the Consolidated Fund to cover supplementary expenditure under the Recurrent Budget and the Capital Budget for the fiscal year 2018/2019.
The sources of the amount to be appropriated are advances made from the Contingencies Fund amounting to M211, 020,542 from M100, 000,000 which was appropriated for 2018/2019 fiscal year and M130, 000,000 replenished into the contingencies Fund.
The Supplementary Estimates for the Capital Expenditure constitute advances that are made from the Contingencies Fund amounting to M 14,600,000, reallocation within the Capital Budget to the tune of M366, 315,468 and additional funds that were received from development partners during the year amounting to M600, 092,065.
3.0 COMMITTEE OBSERVATIONS
3 .1 The Committee observed that the total outstanding Supplementary Budget of M211, 020 542.00 for the Recurrent Expenditure and M981, 007 533.00 for Capital Expenditure is all reallocation of Expenditure. It should be noted that there is no additional Expenditure.
3.2 RECURRENT EXPENDITURE
3.2.1 Education and Training M38, 000 000.00.
The main cost of 23 million relates to salaries for acting principals and their terminal benefits.
3.2.2 Finance M820, 000.00.
Funds relate to payment of counterpart contribution to Norwegian Association of the Blind Partially Sighted (NABPS).
3.2.3 Justice, Human Rights and Rehabilitation M970, 000.00.
Funds were requested for vehicle hire for foreign Judges and Senior Officials.
3.2.4 Prime Minister’s Office M26, 290 532.00.
The main expenditure to be reallocated in this regard relates to National Reforms for an amount of M12.5 million and hosting of cancer conference was reallocated M8.1 million.
3.2.5 Communications, Science and Technology M37, 400 867.00
The major item is Software Licensing which was due for renewal to Microsoft with the cost of M23, 7 million.
3.2.6 Foreign Affairs M18, 494 801.00
The recall of officials from Lesotho Missions was major in 2018/19 with freight costing M16.4 million. The most expensive Missions were the United Nations (New York) and Brussels.
3.2.7 Labour and Employment M3, 136 127.00
The funds were requested for purposes of clearing rentals due to JHI
3.2.8 Defense and National Security M16, 610 153.00.
The Defense Ministry extended the SADC Prevention Mission by a further period of six months and M2.9 million was reallocated for rental.
3.2.9 Independent Electoral Commission M1, 295 592.00
Funds were requested for short term hire of vehicles for I.E.C. Commissioners.
3.2.10 Judiciary M20, 625 225
The funds were requested for additional three judges who were engaged at a cost of M1.9 million and the purchase of new vehicles for all judges which cost M17.2 million.
3.2.12 Social Development M14, 000 00.00.
This cost was due to an increase in social grants.
3.3 CAPITAL EXPENDITURE
It was noted that most of the reallocation of the capital expenditure is due to foreign financing from IDA, ADF, OPEC and EIC.
3.3.1 Home Affairs M11, 300 000.00.
This cost relates to National ID and civil registry and amounts were due to contractual obligations with NIKUY.
3.3.2 Prime Minister’s Office M4, 600 000.00.
This cost relate to furniture of the new State House.
3.3.3 Communications, Science and Technology M48 684 257.00.
There was a shortfall of M8.7 million on E governance infrastructure project and M40 million relates to the broadcasting mode.
3.3.4 Public Works and Transport M607, 502 368.00.
The shortfalls were noted on major road constructions in Likalaneng M20 million, Oxbow M46 million, Ha Leshoele M90 million and payment of roads M95 million.
3.3.5 Tourism, Environment and Culture M10, 000 000.00
The additional amount required for Semonkong Visitor Centre is estimated at M10 million.
3.3.6 Public Service M11, 027 973.00
The major item here is construction of Lipam Complex.
3.3.7 Justice M31, 900 000.00
This cost relates to construction Tsifa li Mali Court Complex.
3.3.8 Water Affairs M84, 598 969.00
The cost which is GoL funded relates to Tsikoane Hlotse water supply at M3 million. This is counterpart financing which relates to consultancies and installation of low lift pumps.
After thorough scrutiny of the Bill, the Committee recommends that the House adopt the Bill.
The Committee wishes to submit this report to the House for adoption.
Members of the Committee 1. Hon. S. T. Rapapa (chairperson) 2. Hon. L. R. Mahase 3. Hon. S.D .Mangobe 4. Hon. T. J. Sophonea 5. Hon. M. J. Maime 6. Hon. T. L.Kibane 7. Hon. M. P. Maqelepo 8. Hon. L. C. Hlomelang 9. Hon. L. K. Mokoma 10. Hon. M. Malefane 11. Hon. M. C. Hlao 12. Hon. T. Tsita- Mosena 13. Hon. M. R. Khati 14. Hon. M. Hlalele 15. Hon. P. D. Mafereka 16. Hon. T. P. Mokeretla 17. Hon. N. Motsamai 18. Hon. T. L. Mokhosi 19. Hon. M. Tlali