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Madam Speaker

The highlights of the finance committee resolutions under discussion are
those that deal with the Department of Royal Household. This time the
finance committee actually got to see - and interrogate - the department's
officials, which, in itself, is a rare accomplishment.

Even more importantly, this Legislature has finally found the political will
to charge a significant portion of this department's past unauthorised
expenditure against its future budgets. Unauthorised expenditure - including
payments for lobola, clothing, research and endless car repairs - will
therefore see this department starting the next financial year with a
significant shortfall. In total, R3.5-million is to be charged against its
budgets over the next three years. However, this figure could as much as
treble once SCOPA has completed its investigation of unauthorised
expenditure in the 2008/2009 financial year.

Madam Speaker, the Royal Household is forever in the red for its runaway
expenditure. There is hardly a member of the finance portfolio committee or
SCOPA who has not in the past expressed dismay at the department's
extravagance, its lack of financial controls, its lack of accountability or
its contempt of Parliament. The chairperson of the finance committee has
even compiled an elaborate essay on the history of overspending in the
Department of Royal Household.

A document prepared by the provincial treasury detailing the expenditure
patterns of the Royal Household between April and September 2007 shows that
R335 490 had been paid to His Majesty's speech writer. It would be
interesting to interrogate how many speeches had been drafted during this
time and to work out the cost per speech.

According to the same source, a company registered as Development Interface
CC received R36 309 in May 2007 from the royal household for preparing
responses to queries and budget inputs. In July 2007, it received an
identical amount for responding to portfolio committee queries and budget
input and R59 280 for strategic support services. This is most peculiar
since the Department of Royal Household is notorious for failing to respond
to this Legislature's resolutions and for blatantly ignoring its
recommendations.

The provincial treasury document also expressed concern about the
expenditure on clothing for the queens. In total, the royal household spent
R533 000 on clothing from June to October 2007. According to the provincial
treasury, it is not clear whether the department should be responsible for
these expenses.

At least R1.1-million was spent on entertainment for the royal household
between April and September 2007 with the bulk of the money going towards
catering services, the hiring of marquees, toilets, stages and sound
systems. Yet only R803 000 could be accounted for. The treasury report said
there had been four occasions when hotel accommodation had cost in excess of
R5 000 per person per night.

The treasury report adds that the maintenance of the department's fleet of
32 cars cost R1.6m between April and September 2007. However, only R816 000
of the money spent on the fleet could be accounted for.

Between April and September 2007, the Department of Royal Household spent
R2.5-million on subsistence and travel, but only R1.1-million of this amount
was accounted for. These items, Madam Speaker, are only matched by the
travel and subsistence claims filed between May and August this year by the
Hon. MEC for Economic Development and Tourism.

In its report on the royal household's extravagance, the provincial treasury
noted that its analysis was constrained by the lack of detailed information.
The finance portfolio committee and SCOPA have expressed similar sentiments
about the willingness - or lack thereof - on the part of the department's
officials to account to the Legislature and, by proxy, to the taxpayer.

Both ofst take the credit for the action they have now taken against the
Department of Royal Household. Much less praise must be reserved for the
mere redeployment of the former Head of Department of Royal Household within
the Office of the Premier. Generally speaking, transfers rather than
dismissals of incompetent staff are an established practice within this
provincial government.

Such redeployment of non-performing officials has overshadowed the otherwise
laudable Treasury reinforcements recently seconded to the Department of
Health as part of the joint turnaround strategy.

Madam Speaker, it is important to clarify that unauthorised expenditure in
the Department of Royal Household largely covers expenditure which has not
been budgeted for, rather than illegally incurred expenditure as has been
the case in the Department of Agriculture.

Similarly, unauthorised expenditure in the Department of Royal Household
generally relates to minor sums compared to the massive overspending in
other departments, namely in the Department of Health.

This, however, does not remove the responsibility on the part of the
Department of Royal Household to account for such unauthorised expenditure
or suffer the penalties that result from its violation of the PFMA.

In conclusion, Madam Speaker, I wish to say that my party is a proud
custodian of the traditional institutions and particularly of the Zulu Royal
Household. But we also believe that the public perception of the Department
of Royal Household as a haven of extravagance and mismanagement has done the
institution it serves tremendous harm.

We in the IFP believe that sound financial management would greatly enhance
the prestige of the Zulu Royal Household beyond its traditional support
base. The resolutions that penalise the Department of Royal Household for
its unauthorised expenditure are a step in the right direction.

I thank you.