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Tuesday, 29 October 2013] 4873reporting intervals so that all the relevant service deliveryinformation could be available on time.The Committee notes the improvements made by the Departmentand South African Tourism in leadership, supply chain managementand governance from the 2011/12 audit report Improvements. TheCommittee urges the Department and South African Tourism tokeep improving and maintain the clean audit they received in theperiod under review.The quarterly information for 2012/13 and the first and secondquarter for 2013/14 financial years were requested from theNational Treasury in preparation for this report.7.2 Governance and operational issuesThis section deals with general governance and operation concernsand Committee evaluation of how well the Department operates;such as IT, infrastructure matters human resources, disciplinary andgrievance processes and audit action plans.The Auditor-General had no findings with regard to governanceissues in the Department. However, there were material issuesdiscovered by the Committee during the oversight visits. Duringoversight visits allegations were made by project beneficiaries thatsome companies appointed to implement Social ResponsibilityImplementation projects were not South African and did not havecapacity to deliver on these projects. Some of these implementingagents had disappeared without a trace. The way in which projectImplementers are appointed should be reviewed to eliminateassociated risks.There is a concern with regard to the reporting system for SRIprojects. The Project Implementers report electronically but in someinstances work on the ground does not reflect the reportedoutcomes. This has led to Project Implementers being paid forsubstandard work based on milestones reported on the system asopposed to what has been actually delivered on the ground. TheDepartment should provide capacity building for Provincial ProjectMangers on project management and close monitoring of reportsbefore payments are affected. Project aftercare should also bemonitored post project implementation.In regard to South African Tourism, the Committee is concernedthat this Entity did not fully comply with the King Report whichprovides guidelines of good governance in South Africa. The KingReport stipulates that the Chairman of the Board may not be theChairperson of the Remuneration Committee. However, SAT doesnot comply with this as the Chairperson is also the Chairman of theRemuneration Committee. SAT also has the Chairperson of theANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 147─2013