Reply by Minister of Social Development E Molewa on questions posed in the National Assembly for written reply

Question 787

Ms H Lamoela (DA) to ask the Minister of Social Development:

(1) What (a) was the cost of each of the 40 fully equipped, mobile trucks that were purchased by the South African Social Security Agency (SASSA) to service rural areas and (b) are the cost implications in terms of (i) maintenance, (ii) value depreciation and (iii) storage fees when they are parked;

(2) whether the financial implications that caused 30 of these trucks to be grounded was due to poor management; if not, (a) why are the trucks grounded and (b) what action is being taken to ensure that these grounded trucks are utilised; if so, what are the relevant details:

(3) whether a needs analysis was done prior to the purchase of these trucks; if not, why not; if so, what are the relevant details?

Reply:

(1) (a) The cost of incurred by the agency to procure the 40 mobile units is R49 686 665. This gives an average cost of R1, 242 167 per mobile unit.

(b) (i) The amount of R232 817 was incurred for the maintenance cost of the mobile units.
(ii) A 20% per annum depreciation value is being provided for the mobile units.
(iii) No parking cost has been incurred as these mobile units are parked in Agency district offices.

(2) No.
(a) The budgetary constraints have forced the Agency not to utilise all of these mobile units.
(b) The Agency is reviewing its budget allocation with a view to identify funds to ensure all these mobile units are utilised.

(3) Yes, a need analysis was done the former Bantustans areas and deep rural areas were targeted together with the poorest municipal areas where the services were not being accessed by the prospective beneficiaries which were informed by the multiple Deprivation Indices reports on child poverty information by Statistics South Africa in 2005.

Issued by: Department of Social Development
23 September 2009

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