Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698931303910.pdf (South Africa)
Tuesday, 9 May 2023] No 60—2023] FIFTH SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ TUESDAY, 9 MAY 2023 _____________________ TABLE OF CONTENTS ANNOUNCEMENTS National Assembly 1.

Referral to Committees of papers tabled .......................................................................... 2 National Council of Provinces 1.
Referral to Committees of papers tabled .......................................................................... 3 TABLINGS National Assembly and National Council of Provinces 1.

Minister of Communications and Digital Technologies .................................................. 3 2.

Minister of Transport ....................................................................................................... 3 National Assembly 1 1.
Speaker ............................................................................................................................. 3 National Council of Provinces 1.

Chairperson ...................................................................................................................... 6 COMMITTEE REPORTS National Assembly 1.

2.

3.

4.

5.
Justice and Correctional Services ..................................................................................... 9 International Relations and Cooperation ........................................................................ 34 Communications and Digital Technologies ................................................................... 68 Appropriations ................................................................................................................ 96 Human Settlements ...................................................................................................... 118 ANNOUNCEMENTS National Assembly The Speaker 1.
Referral to Committees of papers tabled (1) The following papers are referred to the Portfolio Committee on Women, Youth and Persons with Disabilities for consideration and report: (a) Annual Performance Plan of the Commission for Gender Equality for 2023/2024.

(b) Commission for Gender Equality 5 Year Strategy Amendment Report for 2019 – 2024.
(2) The following paper is referred to the Portfolio Committee on Justice and Correctional Services for consideration: (a) Report of the Independent Commission for the Remuneration of Public Office Bearers for 1 January 2021 to 31 December 2021.

(3) The following paper is referred to the Portfolio Committee on Public Service and Administration for consideration and report: (a) Revised Strategic Plan of the Government Communication and Information System (GCIS) for 2020/21 – 2024/25.
(4) The following paper is referred to the Portfolio Committee on Trade, Industry and Competition for consideration and report: 2 (a) Annual Performance Plan of the National Lotteries Commission for 2023/24.

National Council of Provinces The Chairperson 1.


Referral to Committees of papers tabled (1) The following paper is referred to the Select Committee on Security and Justice for consideration and report (a) Draft Regulations for approval, submitted in terms of section 94(3) of the Legal Practice Act, 2014 (Act No 28 of 2014).

TABLINGS National Assembly and National Council of Provinces 1.
The Minister of Communications and Digital Technologies (a) Annual Performance Plan of the State Information Technology Agency (SITA) for 2023/2024.

2.

The Minister of Transport (a) Report of the Regulating Committee for Airports Company South Africa SOC Limited and Air Traffic and Navigation Services South Africa SOC Limited for 2020-21.

National Assembly 1.

The Speaker (a) First Report of the National Assembly Rules Committee 2023.
3 REPORT OF NATIONAL ASSEMBLY RULES COMMITTEE ON ESTABLISHMENT OF NEW PORTFOLIO COMMITTEE AND CLUSTERING OF MINISTERS FOR QUESTIONS 1.

Introduction The National Assembly Rules Committee (the Rules Committee) met on 25 April 2023, when it considered, among other things, the impact of the appointment of new Ministers on the establishment of portfolio committees, and the clustering of Ministers for Questions.
The Speaker, as Chairperson of the Rules Committee, hereby presents the report of the Rules Committee for the information of Members, dated 28 April 2023, as follows: 2.

Establishment of new portfolio committee In terms of Assembly Rule 225, the Speaker acting with the concurrence of the Rules Committee must establish a range of portfolio committees; assign a portfolio of government affairs to each committee; and determine a name for each committee.
Rule 226 provides that a portfolio committee consists of the number of Assembly members that the Speaker may determine with the concurrence of the Rules Committee in each case, subject to the provisions of Rule 154, which deals with the composition of committees generally.

On 6 March 2023, the President announced changes to his Cabinet.

Among these changes, was the appointment of two new Ministers in the Presidency, namely, for Electricity; and for Planning, Monitoring and Evaluation.
Currently, Planning, Monitoring and Evaluation falls within the domain of the Portfolio Committee on Public Service and Administration.

The Presidency is configured as follows: • Minister in The Presidency – responsible for Government Communication and Information System (GCIS); State Security; Media Development and Diversity Agency (MDDA).

• Minister in The Presidency – responsible for Planning, Monitoring and Evaluation (PME).

• Minister in The Presidency – responsible for Electricity.
• Minister in The Presidency – responsible for Women, Youth and Persons with Disabilities.

2.1 Minister in The Presidency for Electricity The Minister does not have a specific budget.

The Minister’s responsibilities form a dedicated programme which is located in The Presidency.

In the circumstances, the Rules Committee did not deem it necessary to establish a separate portfolio committee to oversee the Minister of Electricity.
2.2 Minister in the The Presidency for Planning, Monitoring and Evaluation The Minister has a department which has its own budget.

The Rules Committee agreed that a new portfolio committee be established for this Ministry which will allow for expanded accountability by the Presidency to Parliament as regards the mandate and functioning of this portfolio.
The committee will consist of 11 members composed as follows: ANC 6, DA 2, EFF 1 and other parties 2 and be named the Portfolio Committee on Planning, Monitoring and Evaluation.

1 4 3.

Clustering of Ministries for Questions In terms of Assembly Rule 138(1), questions for oral reply by Ministers must be dealt with in accordance with a clustered system of government portfolios, as determined by the Rules Committee from time to time.

1.
1.

The Sixth Parliament is coming to a close and substantive changes to the clustering of Ministers may not be feasible.

For this reason, the Rules Committee resolved that Ministers in the Presidency be allocated as follows: a.

Cluster 1 (Peace and Security = Minister in The Presidency (State Security)) b.
Cluster 3 (Governance = Minister in The Presidency (GCIS and MDDA)) c. Cluster 3 (Minister in The Presidency for Planning, Monitoring and Evaluation) d. Cluster 4 (Economics = Minister in The Presidency for Electricity) as a stand- alone Minister.
CLUSTER 1 - Peace and Security CLUSTER 2 - Social Services CLUSTER 3 – Governance CLUSTER 4 – Economics CLUSTER 5 – Economics · Defence and Military Veterans · Home Affairs · · Basic Education Health International · Relations and Cooperation Higher · Education, Science and Innovation Justice and · Correctional Services Human · Settlements · Cooperative Governance and Traditional Affairs · Government Communication and Information System and Media Development and Diversity Agency · Women, Youth and Persons with Disabilities · Planning, Monitoring and Evaluation Agriculture, Land · Reform and Rural Development · Public Enterprises · Forestry, Fisheries and the Environment Public Works and · Infrastructure Communications · and Digital Technologies Small Business · Development Employment and · Labour · Tourism · · Police · Social Development Public Service and · Administration · Finance Trade, Industry and · Competition State Security Sport, Arts and · Culture · Mineral Resources and Energy · Transport · Water and Sanitation · Electricity 5 National Council of Provinces 1.
The Chairperson (a) Letter from the President of the Republic of South Africa to the Chairperson of the National Council of Provinces, informing of the employment 880 members of the South African National Defence Force for service in cooperation with the South African Police Service for prevention and combating of crime and maintenance and preservation of law and order in the Republic of South Africa under Operation Prosper.
6 02 May 2023 Dear Honourable Chairperson, EMPLOYMENT OF MEMBERS OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR SERVICE IN COOPERATION WITH THE SOUTH AFRICAN POLICE SERVICE FOR THE PREVENTION AND COMBATING OF CRIME AND MAINTENANCE AND PRESERVATION OF LAW AND ORDER IN THE REPUBLIC OF SOUTH AFRICA This serves to inform the National Council of Provinces that I have authorised the employment of 880 members of the South African National Defence Force (“SANDF”) for service in cooperation with the South African Police Service (“SAPS”) for the prevention and combating of crime and maintenance and preservation of law and order in the Republic of South Africa under OPERATION PROSPER.
Members of the SANDF employed will assist the South African Police Service (SAPS) in protecting Eskom power stations identified around the country.

2700 members of the SANDF were previously employed to assist the SAPS in protecting Eskom power stations under OPERATION PROSPER from 17 March 2023 to 17 April 2023.

The employment is authorised in accordance with the provisions of section 201(2) (a) of the Constitution of the Republic of South Africa, 1996.
The employment is from 17 April 2023 to 17 October 2023.

The expenditure expected to be incurred for this employment is R 146 718 427.

I will communicate this report to the Speaker of the National Assembly and request that you bring the contents of this letter to the attention of Members of the National Council of Provinces.
Yours sincerely, Mr Matamela Cyril Ramaphosa President of the Republic of South Africa Hon Mr Amos Masondo, MP Chairperson of the National Council of Provinces Parliament of the Republic of South Africa CAPE TOWN 7 Referred to the Joint Standing Committee on Defence for consideration.

COMMITTEE REPORTS National Assembly 8 1.


Report of the Portfolio Committee on Justice and Correctional Services on the Annual Performance Plan for 2023/24 of the Office of the Chief Justice and Budget Vote 27: Office of the Chief Justice, dated 9 May 2023 The Portfolio Committee on Justice and Correctional Services, having considered the Annual Performance Plan for 2023/24 of the Office of the Chief Justice and Budget Vote 27: Office of the Chief Justice, reports as follows: 1.

Context 1.1.
Context 1.1.

On 2 May 2023, the Minister of Justice and Correctional Services addressed the Committee on the relevant political priorities.

Regarding the Office of the Chief Justice (OCJ), the Minister highlighted that the OCJ will continue to ensure that all South Africans have access to justice.

Specifically, the OCJ is working to address disruptions to court services as a result of load-shedding.

Neither the Constitutional Court and the Supreme Court are affected by load- shedding.
Further, generators have been rolled out to various high courts countrywide.

The Minister’s speech is available from the Committee Secretariat.

1.2.

The OCJ presented its Annual Performance Plan 2023/24 and budget for the 2023 MTEF on 2 May 2023.

The presentation is available from the Committee Secretariat.

1.3.

The meetings took place on the Zoom virtual platform.

2.

Fiscal policy and Budget 2023 MTEF 2.1.

Fiscal Policy 1 9 2.1.1.


The 2023 Budget adopts the theme ‘Navigating economic recovery’, acknowledging that budgeting takes place in a challenging global and domestic environment.

2.1.2.

Medium‐term fiscal policy aims to achieve a balance between stimulating the economy, maintaining fiscal sustainability and strengthening welfare for vulnerable citizens through the protection of the social wage.

2.1.3.

However, the economy has weakened since the 2022 MTBPS.
Although revenue performance was better than estimated in the 2022 Budget, at a domestic level, finances are severely constrained.

Additional allocations are funded from ‘drawdowns’ from provisional allocations in the 2022 MTBPS, resources provided by the fiscal framework and technical corrections and budget reprioritisations.

2.1.4.
2.1.4.

Spending is targeted towards specific priorities, namely infrastructure and to support the social wage (health, education, housing, social protection, transport, employment and local amenities), rather than baseline allocations.

Baseline allocations across departments largely target spending on the social wage and infrastructure projects and to fund initiatives towards strengthening the criminal justice system.

2.1.5.
2.1.5.

A further priority is to reduce fiscal and economic risks through conditional in-year support to key public entities and to debt relief to Eskom to promote the security of energy supply 2.1.6.

The Peace and Security function, of which the OCJ is a part, accounts for approximately 12.1% of government’s consolidated expenditure.

The function is allocated R225.8 billion in 2023/23; R235 billion in 2024/25; and R246.3 billion in 2025/26.

2.1.7.
2.1.7.

The function’s baseline is increased by R29.1 billion over the MTEF period, from R678 billion to R707 billion.

The net increase includes R12.4 billion for improvement of conditions of service; R4.2 billion for 2 10 the establishment of a Border Management Authority; and R3.1 billion to enhance border security.

2.2.

Budget 2023 MTEF 2.2.1.

The OCJ is allocated R2.43 billion in 2023/24, compared with R2.61 billion in 2022/23 (adjusted upwards from R2.38 billion).
The budget is expected to increase over the MTEF to R2.53 in 2024/25 and R2.65 billion in 2025/26.

2.2.2.

The allocation for programmes for 2023/24 is R1.30 billion or 53.5% of the total allocation, while the remainder of R1.12 billion comprises the direct charge for Judges’ salaries.

Over the medium term, average expenditure on programmes as a percentage of total expenditure for programmes is 53.3%.

2.2.3.
2.2.3.

In terms of economic classification, R1.81 billion is allocated to compensation of employees, R372.1 million to good and services, R136.4 million to transfers and subsidies and R108.4 million for payment of capital assets.
Budget allocation per programme 2023 MTEF Programme Adjusted MTEF Average Appropriation 2023/24 2024/25 2025/26 Expenditure/ 2022/23 R million Administration 301.7 271.4 283.1 295.3 Superior Court 1 008.2 979.8 1 022.1 1 067.5 Total % 2022/23- 2025/26 11.3 % 39.9 % Services Judicial Education and 53.0 53.3 55.8 57 2.1 % 3 11 Programme Adjusted MTEF Average Appropriation 2023/24 2024/25 2025/26 Expenditure/ 2022/23 R million Total % 2022/23- 2025/26 Support Subtotal 1 362.9 1 304.5 1 361.0 1 419.8 53.3 % Judges’ Salaries Total 1 247.1 2 610.0 1 124.7 1 175.2 1 227.9 2 429.2 2 536.2 2 647.6 46.7 % 100 % Changes to 2022 221.6 71.6 72.7 73.8 - Budget Estimate Budget allocation per economic classification 2022 MTEF Economic Adjusted MTEF Average Classification Appropriation 2023/24 2024/25 2025/26 Expenditure/ 2022/23 R’ million Total % 2022/23 – 2025/26 Compensation 1 963.7 1 812.3 1 891.6 1 974.2 74.8 % of employees Good and 369.5 372.1 387.3 404.2 15 % services Transfers and 138.2 136.4 142.5 148.8 5.5 % subsidies Payments for 138.6 108.4 114.9 120.5 4.7 % capital assets Total 2 610.0 2 429.2 2 536.2 2 647.6 100% 4 12 3.
Strategic and annual planning 3.1.

The OCJ’s core function is to provide administrative support to the judiciary and has consequently adopted the following strategic outcomes: • Effective and efficient administrative support.

• Improved court efficiency.

• Enhanced judicial education and support.

3.2.


In this way, the OCJ responds to Chapter 14 of the National Development Plan ‘Promoting accountability and fighting corruption’, particularly contributing to the focal area ‘strengthen judicial governance and the rule of law’ by: • Accelerating reforms to implement a judiciary-led court administration.

• Ensuring an efficient court system.

• Reducing inefficiencies in the administration of the courts.

• Ensuring access to justice.

3.3.


The OCJ also responds to Chapter 13 of the National Development Plan ‘Building a capable and developmental State’ by ensuring good governance in the administration of the Department.

3.4.

The Medium Term Strategic Framework (MTSF) 2019 – 2024 acknowledges that the challenges of poverty, inequality and unemployment continue to hold back national development.
To address these challenges, the revised MTSF identifies a number of priority areas, including ‘A capable, ethical and developmental state’ and ‘Social cohesion and safe communities’.

The MTSF also recognizes the lack of access to resources and opportunity for Women, Youth and People with Disabilities as cross-cutting, requiring a variety of interventions.
Further priorities to be included by departments in the planning cycle are: ‘Compliance with the Financial Disclosure Framework’; and ‘Modernisation and digitalization of departmental processes’; and ‘Economic transformation and job creation’.

5 13 3.5.

The OCJ contributes to the revised MTSF priorities by focusing on: • ‘Priority 1: A capable, ethical and developmental State’ by: Ø Promoting an ethical culture.

Ø Integrating ‘Batho Pele’ principles into the Department’s institutional culture.
Ø Adhering to corporate governance principles such as leadership, strategy and performance, and risk and stakeholders’ management.

Ø Improving court systems.

Ø Modernising court processes and systems.

• ‘Priority 2: Economic transformation and job creation’ by implementing equity programmes targeting employment and empowerment of youth, women, and people with disabilities in both its recruitment and procurement processes.
In addition, the OCJ will continue to support SMMEs through procurement processes and comply with the 2022 Preferential Procurement Regulations.

• ‘Priority 6: ‘Social cohesion and safe communities’, by ensuring access to a safe and secure court environment and improving the efficiency of court processes, as well as capacitating and resourcing the courts in order for them execute their mandate.

3.6.
The OCJ has the following outcomes and outputs: IMPACT STATEMENT: QUALITY AND ACCESSIBLE JUSTICE FOR ALL OUTCOME: OUTCOME: OUTCOME: EFFECTIVE AND IMPROVED ENHANCED EFFICIENT COURT JUDICIAL ADMINISTRATIVE EFFICIENCY PERFORMANCE SUPPORT Clean audit outcome Default judgment Judicial education S T U P T U O finalised within 14 courses days 6 14 Financial submitted disclosure Bills of costs Monographs on finalised within 60 judicial education days Procurement of goods and Warrants of Monitoring reports on services above R500 000 release (J1) the management of awarded to suppliers delivered within litigations one day Funded vacant posts Monitoring reports Reports on judicial reduced on law reporting appointment and Empowered youth project Reports complaints on Report on disclosures enhancement of for Judges court order Registerable interests integrity Women represented at SMS Judicial case-flow levels management People with disabilities performance representation reports Court online system rolled out at service centres Employee Health and Wellness programmes Staff trained in line with WSP Fraud cases investigated within prescribed timeframes Fraud prevention and anti- corruption awareness sessions ICT Disaster Recovery Strategy 7 15 3.7.
Specifically, the OCJ’s Annual Performance Plan 2023/24 aims to: • Support the Chief Justice in ensuring judicial accountability.

• Implement initiatives that contribute to broadening and improving access to justice and services of the Superior Courts.

• Ensure an efficient court system and provide judicial support.

• Reduce inefficiencies in court administration through modernised systems, processes and infrastructure.

• Implement measures that are intended to address the impact of COVID-19.

3.8.
3.8.

In addition, the 2023 APP reflects the following medium term strategic focus areas: • Strengthening capacity for ensuring business continuity management.

• Ensuring that ICT remains a strategic business partner.

• Curbing opportunities for fraud and corruption.

• Promoting professional ethics within the organisation.

• • Improving the OCJ’s capacity with more focus on the core business.

Implementing health and wellness programmes.

• Ensuring occupational health and safety.


• Training of Judicial Officers.

3.9.

Aligning planning with expenditure 3.9.1.

The OCJ reports that it continues to be affected by the budget cuts that were made to its baseline in 2020/21 as a result of the impact of the Covid-19 pandemic on the economy, despite receiving an additional allocation of R39 million in 2022/23 to strengthen the justice system and the courts.
More specifically, the budget cuts have necessitated reprioritisation of resources to support key government priorities, including court modernisation and digitalisation to improve access to justice and the services of the superior courts.

8 16 3.9.2.

The OCJ also reports that the restricted budget has impacted on the filling of posts, as the OCJ is not only expected to reduce its staff establishment over the MTEF but also affects its ability to fill vacancies.
Budget constraints, therefore, limit the OCJ’s in its delivery of services and support to the Judiciary and further effects key human resource strategies, such as the recruitment of persons with disabilities and women on SMS level.

3.9.3.

In terms of economic classification, compensation of employees is the largest cost driver, accounting for an estimated 75% of its total budget over the medium term.

3.9.4.
3.9.4.

In terms of spending within the Vote programme, in 2023/24, compensation of employees remains the largest cost driver at 63.1%, while 29% of spending goes towards Goods and Services.

3.10.
3.10.

Human Resource capacity: VOTE PERSONNEL NUMBERS PROGRAMME ESTIMATED 2022/23 2023/24 2024/25 2025/26 @23 MARCH 2023 192 1809 175 201 198 203 1904 1881 1858 1883 45 39 41 40 40 2046* 2118 2123 2096 2126 Administration Superior Court Services Judicial Education and Support Total Direct Charge 509 534 484 490 631 * Includes 103 posts additional to the staff establishment 3.11.

Risks and mitigation strategies 9 17 3.11.1.


The OCJ has updated its key risks and mitigation strategies for 2023/24 as follows: Risks and mitigation strategies 2023/24 RISKS MITIGATION Outcome: Effective and efficient administrative support Procurement risk: • Establish Bid Specification and Bid Possible abuse of SCM system by Evaluation committees.

officials.

• Vet all members before each committee Possible collusion between SCM sits.

officials and suppliers.


• Declaration of interest by SCM officials during Bid Specification, Evaluation and Adjudication processes.

Prevalent fraud and corruption • Review delegation of authority.

incidents: • Review and strengthen internal controls • OCJ officials doing business with and policies and procedures.

the state and within the • Fill vacant posts.

Department.

• Release some functions from posts • Fraudulent court orders.
where officials are acting in more than • Misconduct/corruption one position.

• Bribery • Stolen/lost assets • Proper segregation of duties, especially at SCM level.

• Enforce compulsory training of ethics management for all employees in the OCJ.

Organisational capacity and • Prioritise critical posts to be filled.
capability: • Conduct a work study and review the Inadequate capacity (human OCJ’s organisational structure to resources and competent skills) to establish work-load capacity fulfil the mandate of OCJ.

requirements within the OCJ.

• Implement the retention/succession guideline.

10 18 RISKS MITIGATION • Conduct employee satisfaction survey implement recommendations.
Technology and its role in • Reinforce stakeholder relations to improving access to justice: ensure commitment relating to project Inadequate technology to support the resourcing.

Superior Courts in improving access • Maintain and sustain technology to justice.

infrastructure.

• Embark on technology awareness campaigns.

• Prioritisation of Court Online and other network related technologies.

• Mandatory documentation of technologies deployed.
Cybercrime: • Accelerate the implementation of the Inadequate security controls to Information Security Management protect organisational information programme.

and respond to cyber security threats • Conduct network and vulnerability audits.

• Establishment of the Threat and Vulnerability Management programme.

• Implement Information Security Framework.


• Roll-out of Encryption Software in all End-User Equipment • Deployment of Security Incident and Event Management • Deployment of Intrusion Detection and Prevention System • Conduct information security awareness sessions.

• Implement Business Continuity 11 19 RISKS MITIGATION Management Processes.
Outcome: Improved court efficiency Inadequate quasi-judicial support to • Monitor the implementation of the ensure court efficiency: Standard Operating Procedures (SOPs), Registrars Code and Court Ineffective/inadequate and delays in Rules.

finalisation of all received • Monitor performance and compliance applications for default judgement, to legislated court procedures.
taxation of legal costs and warrants • Improve the delivery of issued of release (J1) delivered warrants from the circuit court to the main seat.

• Prioritise the appointment of quasi- judicial personnel.

• Training of the Registrars by the Justice College.

• Prioritize the implementation of the Court Online solution Outcome: Enhanced judicial performance Inadequate provision of educational • Enhance compliance with the courses that improve judicial approved training schedule.
performance: • Monitor the implementation of SAJEI Inability to effectively provide SOP.

training to Judicial Officers 4.

Programmes 4.1.

Programme 1: Administration 4.1.1.

The purpose of this programme is to provide strategic leadership, management and support services to the Department.
The programme consists of the following sub-programmes: 12 20 • The Management subprogramme, which provides administrative, planning, monitoring, evaluation, performance reporting and risk management functions necessary to ensure effective functioning of the Department.

• The Corporate Services sub-programme, which provides an integrated Human Resources Management (HRM), Information and Communication Technology (ICT) and Security Management Support Services to the Department.
• The Finance Administration subprogramme, which provides overall financial, asset and supply chain management services to the Judiciary and the Department.

• The Internal Audit and Risk Management sub-programme, which provides overall internal audit and forensic audit services to the Department.

• The Office Accommodation sub-programme, which provides for the acquisition of office accommodation.

4.1.2.
Output indicators and targets are as follows: Administration: Output indicators and annual targets Output Indicator Annual Targets 2022/23* 2023/24 2024/25 2025/26 Outcome: Effective and efficient administrative support Audit outcome for the Clean Clean audit Clean audit Clean audit OCJ audit outcome outcome outcome Percentage of - 80% 80% 85% outcome procurement of goods and services above R500 000 awarded to suppliers who meet the specific goals (NEW) Percentage of designated 100% 100% 100% 100% 13 21 Output Indicator Annual Targets 2022/23* 2023/24 2024/25 2025/26 employees who submitted financial disclosures within timeframes Percentage of vacant 10% or 10% or lower 10% or 10% or lower posts on the funded lower lower establishment Percentage of staff in the 30% 30% 30% 30% department comprised of youth Percentage of women 50% 50% 50% 50% representation in Senior Management Service (SMS) Percentage of people 2% 2% 2% 2% with disabilities representation in the department Court online system implemented at service centres Number of Employee Health and Wellness programmes implemented 5 9 7 11 12 14 16 Percentage of fraud - 75% 75% 75% cases investigated within 60 working days Number of Fraud 25 26 28 28 Prevention and Anti- Corruption awareness 14 22 Output Indicator Annual Targets 2022/23* 2023/24 2024/25 2025/26 sessions conducted ICT Disaster Recovery - ICT Disaster ICT Disaster ICT Disaster Strategy implemented Recovery Recovery Recovery (NEW) Site maintained Site established maintained * Estimated
 Performance 4.1.3.
The OCJ has the following COVID-19 related indicators and targets for 2023/24: Administration: COVID-19 related indicators and targets 2023/24 Output indicator Number of COVID-19 OHS inspections conducted at OCJ Number of COVID-19 related trainings conducted for safety officers Number of COVID-19 compliance reports produced Number of COVID-19 risk mitigation reports produced 4.1.4.
Planned expenditure: Estimated Target performance 2023/24 2022/2322 4 4 4 4 4 4 4 4 • The Administration programme is allocated R271.4 million in 2023/24 (compared with an adjusted budget of R301.7 million in 2022/23), R283.1 million in 2024/25 and R295.3 million in 2025/26.

• The allocation to this programme decreases in real terms by -14.25% in 2023/24.
• In terms of economic classification, average spending on Goods and Services from 2022/23 to 2025/26 is at 48.5% of the allocation over 15 23 that period, while average spending on compensation of employees is at 42.1%.

Notably, the number of personnel in Programme 1 is expected to increase from 175 in 2022/23 to 201 in 2023/24.
• Under Administration, during 2022/23, the OCJ will continue with digitisation and automation of the court system, with a focus on rolling out the Court Online system to seven prioritised courts in 2023/24.

The plan is to roll out the system to all Superior Courts over the MTEF.

Spending for this is within the Corporate Services subprogramme allocation of R174.1 million for 2023/24.

4.2.

Programme 2: Superior Court Services 4.2.1.


This programme provides judicial support and court administration services to the Superior Courts.

4.2.2.

The programme consists of the following sub-programmes: • The Administration of Superior Courts subprogramme provides administrative and technical support to the Superior Courts, monitors the overall performance of the Superior Courts, and enhances judicial stakeholder relations.
• The Constitutional Court subprogramme funds the activities and operations of the Constitutional Court.

• The Supreme Court of Appeal subprogramme funds the activities and operations of the Supreme Court of Appeal.

• The High Courts’ subprogramme funds the activities and operations of the various high court divisions.

• The Specialized Courts subprogramme funds the activities and operations of the labour, land, electoral and competition courts.

4.2.3.
Output indicators and annual targets are as follows: Superior Court Services – Output indicators and annual targets Output Indicator Medium Term Targets 16 24 2022/23* 2023/24 2024/25 2025/26 Outcome: Improved court efficiency Percentage of default judgments finalised 74% 76% 80% 80% by Registrars within 14 days Percentage of taxation of legal costs 80% 85% 90% 90% finalised within 60 days from date of set down Percentage of warrants of release delivered 100% 100% 100% 100% within one day of release granted No.
of monitoring reports on law reporting project produced Number of Judicial Case Flow Management Performance reports produced Number of reports on enhancement of court order integrity produced *Estimated performance 4.2.4.

Planned expenditure 4 4 4 4 4 4 4 4 4 4 4 4 • The Superior Courts Services programme is allocated R979.8 million in 2023/24 (compared with an adjusted budget of R1008.2 in 2022/23); R1022.1 million in 2024/25; and R1067.5 million in 2025/26.
• Due to the labour-intensive nature of the OCJ’s work, an estimated 69.5% of the budget in this programme is earmarked over the medium term for spending on compensation of employees, increasing from R713.1 million in 2022/23 to R737.6 million in 2025/26.

Notably, the number of personnel in Programme 2 is expected to decrease from 1 904 in 2022/23 to 1 881 in 2023/24.

• Under Superior Court Services, during 2023/24, the OCJ plans to fill 33 positions (registrars, clerks and judges’ secretaries).
The additional capacity will enable the OCJ, between 2022/23 and 2025/26, to 17 25 increase the percentage of default judgments finalised within 14 days from 74% to 80%; and improve the finalisation of the taxation of legal bills from 80% to 90%.

Funding for these initiatives is with the Superior Court Services programme’s allocation of R3.1 billion over the MTEF period.

4.3.

Programme 3: Judicial Education and Support 4.3.1.


Judicial Education and Support provides education programmes to Judicial Officers, including policy development and research services for the optimal administration of justice.

4.3.2.

The programme has the following sub-programmes: • The South African Judicial Education Institute sub-programme funds the activities of the SAJEI to provide training for Judicial Officers.
• The Judicial Policy, Research and Support sub-programme funds the provision of advisory opinions on policy development and regulatory services to the Judiciary and the Department.

• The Judicial Service Commission subprogramme provides secretariat and administrative support services to the Judicial Service Commission to perform its constitutional and legislative mandates effectively.

4.3.3.
4.3.3.

Output indicators and targets are as follows: Judicial Education and Support – Output indicators and annual targets Output Indicator Annual Targets 2022/23* 2023/24 2024/25 2025/26 No.

of judicial education courses 110 115 120 125 conducted No.

of research monographs for Judicial 2 2 2 2 18 26 Output Indicator Annual Targets 2022/23* 2023/24 2024/25 2025/26 5 3 2 5 3 2 5 3 2 5 3 2 Education produced per year No.

of litigation reports produced No.


of reports on judicial appointments and judicial complaints produced Number of reports on the status of disclosures for Judges Registrable Interests produced * Estimated Performance 4.3.4.

Planned expenditure: • The Judicial Education and Support programme is allocated R53.3 million for 2023/24 (compared with an adjusted budget of R53 million • • in 2022/23); R55.8 million in 2024/25; and R57 million in 2025/26.
In real terms, the allocation decreases by -4.13% in 2023/24.

The spending focus for this programme remains on conducting training for judicial officers.

In terms of economic classification, average spending on compensation of employees from 2022/23 to 2025/16 is at 47.3%, whereas average spending on Goods and Services for the same period is at 51.8%.

• The number of personnel for Programme 3 is expected to increase from 39 officials in 2022/23 to 41 officials in 2023/24.
• Under Judicial Education and Support, the OCJ plans to increase the number of judicial education and training courses from 110 in 2022/23 to 125 in 2025/26.

This is expected to lead to expenditure of R92.7 million over the MTEF period under the South African Judicial Education Institute sub-programme.

19 27 5.

Overview: 2022 Budgetary Review and Recommendation Report (BRRR) 5.1.
In its 2022 BRRR, the Committee observed the following: • Transfer of functions to the OCJ: The Committee requested more information on the progress of the policy on judicial governance and court administration and the accompanying legislation that was to be taken to Cabinet in the 2022/23 financial year.

• Audit outcome.
• Audit outcome.

Although the OCJ achieved an unqualified audit, the Committee was concerned that about the outcome having regressed, largely as a result of various instances of irregular expenditure that occurred in the ICT environment.

Notably, the Auditor-General had identified vacancies in critical occupations, which had led to a lack of segregation of duties, as a root cause.

• CaseLines.
• CaseLines.

The Committee noted the Auditor-General’s findings and recommendations concerning the procurement irregularities that had occurred relating to the CaseLines project.

The Committee noted that the matter is now being litigated.

Regarding the internal investigation, the Committee noted that the matter had been referred to the SIU to review the contract and for further investigation.

The Committee would continue to monitor progress.

• Court modernisation.


The Committee noted that the OCJ was unable to roll out the court online system at two service centres as planned.

However, piloting had begun at the Pretoria and Johannesburg High Courts in 2022/23.

The Committee requested an explanation for the delay in rolling out the court online system at the two Courts and a progress report concerning the piloting of the system at the same two Courts.

• Employment of women in senior management.


The Committee welcomed the increased number of women employed in senior management, despite not meeting the target of 50%, but would continue to monitor progress.

20 28 • Employment of persons with disabilities.

The Committee noted that the OCJ had once more not been able to achieve its employment targets for persons with disabilities and would continue to monitor progress.

• Vacancies.
• Vacancies.

The Committee noted that vacancies in senior management were far higher than the 10% norm for the public service.

Further the Auditor-General had identified vacancies in critical occupations leading to a lack of segregation of duties as a root cause in the occurrence of procurement irregularities.

The OCJ was asked to provide a report on vacancies, especially those at senior management level and in critical occupations.

• Court infrastructure.


The Committee observed first-hand the infrastructure challenges at the various courts it visited countrywide.

Regarding load-shedding, the Committee noted that the OCJ had engaged SAPS without success in an attempt to exempt the Supreme Court of Appeal as critical infrastructure.

The Committee intended to engage the Minister on this matter and other identified issues as soon as the programme permitted.

6.

Committee’s observations 6.1.


Judicial governance and court administration model and single judiciary.

The Committee notes the Minister’s statement that the policy on judicial governance and court administration has now reached the stage where it was ready for engagement with stakeholders.

The intention was to finalise these engagements by October this year.

The Minister indicated that the outcome of these engagements would inform any necessary legislative amendments.
Once more, the Committee urges the finalisation of the policy and its accompanying legislation as a priority.

Not only is the establishment of a single judiciary a constitutional imperative but also the lack of an appropriate policy and legislative framework contributes to the many inefficiencies and other challenges that our judicial system experiences.

The Committee intends to closely 21 29 .

6.2. monitor the progress of this project towards achieving the institutional independence of the judiciary.
Infrastructure and maintenance.

During recent oversight visits to superior and magistrate’s courts countrywide, the Committee witnessed first-hand the many very serious infrastructure and maintenance-related problems.

Many courts are dilapidated and some of the court buildings have serious structural challenges, for example, collapsing roofs.
The Committee learnt of the Judiciary’s frustration at being drawn into matters of court management, largely because of communication challenges between the Justice Department, the OCJ and DPWI.

In summary, the infrastructure problems are undermining the delivery of justice to the people.
The Committee has had an opportunity to discuss its findings with the Judiciary, and will also to engage with the Ministers of Justice and Correctional Services and Public Works and Infrastructure on its observations as soon as the programme permits.

6.3.

Managing power and water outages.

The Committee welcomes the information that the Supreme Court of Appeal no longer experiences load-shedding, a matter that the Committee had previously raised with the OCJ.
Further, it notes the OCJ’s assurance that almost all Superior Courts have generators so that courts can continue to operate despite power outages.

The OCJ also informed the Committee that it is attending to ensuring that there is backup water available at courts.

Further, the OCJ is looking into how best to manage network downtime.

6.4.

Court modernisation through ICT solutions.


The Committee notes that the OCJ will continue with ICT-related initiatives to modernise and digitise the court system, prioritising the further roll out of the Court Online system in the Superior Courts and the digitisation of court records.

The Court Online system was piloted in the Johannesburg and Pretoria High Courts and the system there are seven courts targeted for the rollout of the Court Online in 2023/24.
Although the Committee welcomes the 22 30 progress made so far, system defects and external dependencies, including pending litigation, pose a threat to the planned rollout of the project.

As such, the Committee intends to continue to regularly monitor the progress of the project.

6.5.

Vacancies.

The Committee notes that the OCJ reports that the loss of experienced Registrars is placing considerable pressure on courts.
The challenge is exacerbated by a judgement of the Mpumalanga High Court, which ruled that Registrars are entitled to grant default judgments in matters related to the National Credit Act (NCA), thereby increasing the workload.

As a result, the OCJ reports that it expects that it will affect the achievement of quasi-judicial targets and that there may be need to revise the targets downwards in the next planning cycle.
More generally, the OCJ reports in the Annual Performance Plan that it continues to experience a high staff turnover rate.

During the 2021/22 financial year, the staff turnover rate was 14.7%, which is an increase of 1.7% from the previous year.

The Committee agrees with the OCJ that the loss of experienced staff in critical positions is a risk to the organisation.

The Committee therefore, requests a report from the OCJ on what it is doing to attract and retain staff.

6.6.

Storage of court records.


A lack of space makes storing old court files very challenging.

Although the Committee understands that implementation of the Court Online solution will assist going forward, it does not address the challenge of storing older records.

The Committee once again notes that the OCJ has made a submission to the IJS for funding to assist with the digitisation of old court records.
The Committee requests a report on the project to digitise older records, as well as the OCJ’s plans to store older records in the meantime.

6.7.

Training of aspirant judges.

The Committee notes that commissioners at the JSC interviews pointed out that the judgments of several of the candidates, delivered while they were acting as judges, were riddled with 23 31 mistakes ranging from typographical errors to misunderstandings of foundational legal concepts.
The Committee welcomes that SAJEI has already begun to engage with the Judges Presidents on the training needs of aspirant judges.

6.8.

Library services.

The Committee notes that the provision of library materials remains a function of the Department of Justice and Constitutional Development but welcomes the undertaking by the Head: Superior Court Services to monitor that library materials are updated on a quarterly basis.

6.9.

CaseLines.
6.9.

CaseLines.

The Committee notes the update provided by the OCJ on the investigations of and the litigation concerning the Caselines tender irregularities, including that the SIU investigation is complete, and will continue to monitor the matter closely.

7.

Appreciation 7.1.

The Committee wishes to thank the Minister of Justice and Correctional Services, Mr R Lamola and the Deputy Minister: Mr J Jeffery for the political overview.

7.2.
7.2.

The Committee also wishes to extend its appreciation to the Secretary- General, Ms M Sejosengwe, and the officials of the OCJ for their assistance in this process.

8.

Recommendations 8.1.

The Committee, having considered the Office of the Chief Justice’s Annual Performance Plan 2023/24, recommends that it be approved.

8.2.

The Committee, having considered Budget Vote 27: Office of the Chief Justice, recommends that it be approved.

24 32 Report to be considered 25 33 2.
Report of the Portfolio Committee on International Relations and Cooperation on Budget Vote 6: International Relations and Cooperation, dated 8 May 2023 The Portfolio Committee on International Relations and Cooperation (hereinafter referred to as the Committee) having considered the directive of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans and Budget allocations of the Department of International Relations and Cooperation (hereinafter referred to as the Department) and the African Renaissance Fund (hereinafter referred to as the ARF), tabled by the Minister of International Relations and Cooperation, in terms of the Public Finance Management Act (Act No 32 of 2003), reports as follows: 1.
Background Parliament plays an important role in overseeing planning and performance of government departments and public entities as well as Chapter 9 institutions.

Section 27 of the Public Finance Management Act (PFMA) stipulates that the Minister must table the annual budget for a financial year in the National Assembly before the start of the financial year.

Subsequent to that, the Money Bills Amendment Procedures and Related Matters Act, No.
9 of 2009, section 10 (1) (c) clearly stipulates that the relevant members of Cabinet must table updated strategic plan and annual performance plan for each department, public entity or institution, which must be referred to the relevant Committee for consideration and reporting.
In considering the strategic and annual performance plans, the Committee ensured that the Department of International Relations and Cooperation and the African Renaissance Fund plans and budget allocations are in line with Medium Term Strategic Plan 2019/24.

The Budget allocation serves as a key instrument for government to promote socio-economic development.
It plays a critical role as an economic instrument of the government to reflect on the country’s socio-economic policy priorities, by translating priorities and political commitments into expenditures.

Furthermore, the Budget serves as a vital tool to operationalise government activities towards the achievement of its intended priorities.

It also gets to highlight the constraints and trade-offs in policy choices.

34 2.
34 2.

Introduction The Committee met on 3 May 2023 to consider presentations on the Department’s Annual Performance Plan (APP) 2023/24 and the related budget allocations.

The Committee further considered the Annual Performance Plan 2023/24 and Strategic Plan (2020/25) of the African Renaissance and International Cooperation Fund (ARF) and its budget allocation.

This report summarises the said presentations of the Department and the ARF, their budget allocations as well as allocations over the MTEF.
2.1 Opening remarks by the Chairperson of the Portfolio Committee of International Relations and Cooperation, Honourable Mr Supra Obakeng Ramoeletsi Mahumapelo MP In his opening remarks, Honourable Mahumapelo welcomed both the Members and those representing the Department, led by Deputy Minister Ms Candith Mashego-Dlamini.

He further acknowledged the presence of Hon Powell, who replaced Hon Bergman as the DA Shadow Minister of International Relations and Cooperation.
2.2 Overview by the Deputy Minister of International Relations and Cooperation, Ms Candith Mashego-Dlamini The Deputy Minister introduced the Department’s presentation on the strategic plan and the annual performance plan for 2023-2024.

The Deputy Minister noted that the Annual Performance Plan 23/24, is reflective of the priorities in the 2020-2025 Strategic Plan.
As we draw to the end of this MTSF period, the Department continues to support the seven strategic priorities of the MTSF, working closely with other government departments and focussing on the execution of South Africa’s foreign policy.
The Deputy Minister expressed that “Economic diplomacy” is one of the key mechanisms in the achievement of national interests through diplomatic means and complements traditional “political diplomacy.” In this new reality, the Department will aggressively embark on economic diplomacy in order to contribute in a more direct and concrete manner to achieve poverty eradication, job creation and socio-economic development and growth, primarily by utilising the resources it has in its Page | 2 35 missions abroad.
The missions, in particular, have a key frontline role to play in the pursuit of economic diplomacy and its component pillars such as FDI pledges, as well as the contribution to tourism promotion for South Africa.

The Department recognises that bilateral engagements remain the pre-eminent basis for advancing national priorities, as well as for effective engagement in multilateral fora and will therefore continue to strengthen its bilateral political, economic and social relations.
This will be pursued through structured bilateral mechanisms, as well as high-level visits.

The Deputy Minister stated that South Africa’s multilateral interests at regional level are focussed on its membership of the Southern African Development Community (SADC), at continental level, the African Union (AU) and at global level, the United Nations (UN).
Other interests which intersect with these, include South Africa’s membership of, among others, the Non-Aligned Movement (NAM), the G77, the G20, the Commonwealth and partnership arrangements.

Regarding peace and security, the Deputy Minister stated that South Africa will, among others, continue to focus on the implementation of the Women, Peace and Security Agenda, will continue seek membership of the UN Peacebuilding Commission and pursue representation on the AU Peace and Security Council.
South Africa is pursuing partnerships with other countries and civil society to translate the Women, Peace and Security (WPS) Agenda into action through our role as the Co-Chair of the Global Network of National Focal Points of Women, Peace and Security and as Chair of the Commission on the Status of Women (CSW).
This action embodies the idea of cooperation between states and regional, international organisations, as well as civil society, as a source for innovative and transformative strategies to advance the implementation of the WPS agenda.

On sustainable development, the Deputy Minister emphasised that South Africa will continue to advance the implementation of the African Continental Free Trade Area (AfCFTA), the AU Agenda 2063 and the UN 2030 Agenda for Sustainable Development.
Page | 3 36 In addition, South Africa’s membership in the Human Rights Council (HRC) for the period 2023- 2025 will provide a platform for South Africa to continue engaging in the development of norms and standards in the field of human rights that will foster the promotion, protection and practical realisation/enjoyment of all human rights by all people across the world.
Given South Africa’s commitment to multilateralism, its presence in the HRC will provide space to push for the transformation of the global system of governance from the power-based system to a rules-based system and to enhance the efforts to create a just and equitable global order.

Public Diplomacy (PD) will focus its budget allocation on expanding the reach of its platforms, with a specific focus on taking “foreign policy to the people”.
Consular Services provide effective and efficient consular and notarial services to South African nationals travelling, working, studying and/or living abroad.

The target for notarial services is now drafted in line with the Service Delivery Charter.

The Department is committed to placing ICT as an enabler in the process of improving organisational functioning, working towards the automation and modern digitisation of business processes, to reduce turnaround time and improve service delivery.
The Department further acknowledges the need to incorporate the inclusion of women, youth, and persons with disabilities in their policies, programmes, and projects and will continue to engage in initiatives that support gender mainstreaming, youth development and people with disabilities.

The Department is also in the final stages of obtaining approval for its new organisational structure that supports its strategy and plans.
In terms of the implementation of the Foreign Service Act, Act 26 of 2019, the Deputy Minister noted that all the steps necessary for the coming into force of the Act were completed and the Act and the Regulations entered into force on 25 August 2022.

Page | 4 37 The draft text of the Regulations was published for public comment in the Government Gazette on 24 June 2022, thereafter the text of the Regulations was finalised.
The implementation process is under way with the implementation committee finalising the drafting of Policies and Standard Operating Procedures of the Act.

The coming into operation of this Act will ensure efficiency in the implementation of the Foreign Service throughout the country.

3.
3.

Presentation by the Department on Budget Vote 6: International Relations and Cooperation 2022/23 and Medium Term Expenditure Framework (MTEF) expenditure focus The Department presented on its work towards the realisation of South Africa’s Foreign Policy objectives.
This was accomplished through: • coordinating and aligning South Africa’s international relations, • monitoring developments in the international environment, • communicating government’s policy positions, • developing and advising government on policy options, and creating mechanisms and avenues for achieving objectives, • protecting South Africa’s sovereignty and territorial integrity, • contributing to the creation of an enabling international environment for South African businesses, • sourcing developmental assistance; and assisting South African citizens abroad1.
3.1 Strategic linkages to the National Development Plan (NDP) 2030 1Annual Performance Plan 2023/24, Department of International Relations and Cooperation Page | 5 38 It has been highlighted that South Africa’s foreign policy finds its inspiration from the country’s domestic agenda.
It endeavours to address the triple challenges of poverty, inequality and unemployment through the implementation of an independent foreign policy 2, within a highly VUCA (volatile, uncertain, complex, ambiguous) and dynamic international environment.

According to the APP, the conduct of South Africa’s foreign policy would be driven by the quest to realise the aspirations of the NDP Vision 2030 and its development trajectory.
This would be done with full recognition of the challenges posed by international environment the Department operates in.

With regard to international relations and cooperation, Chapter 7 of the NDP focuses on the need to enhance South Africa’s position in the region and the world, and to increase trade and investment3.
The plan further states that the country’s foreign policy should be shaped by the interplay between diplomatic, political, security, environmental, economic and regional dynamics that define international relations.

The plan envisions the country positioning itself as one of Africa’s powerhouses, leading development and growth on the continent; and deepening integration with the Brazil-Russia-India-China-South Africa (BRICS) group of countries4.
There has been a clear and deliberate move to ensure there is a link between the activities of the Department and the implementation of Chapter 7 of the NDP Vision 2030.

The NDP underscores the importance of building a nation that contributes to the prosperity of the southern Africa region, the African continent and the betterment of the lives of the marginalised throughout the world.
The NDP further requires that South Africa build a resilient economy which would contribute towards creating a working nation, in order to narrow and eventually eliminate the gap between the rich and poor5.

The Department recognises that the national priorities as contained in the NDP are 2 National Development Plan, Chapter 7 on International Relations 3 Ibid 4 Ibid 5 Ibid Page | 6 39 inextricably-linked to the aspirations of the African continent6.
Hence, economic diplomacy would be used to promote the country as a trade and investment destination, thereby attracting foreign investment and also boosting its tourism sector.

The aspirations of the NDP have also found expression in the Southern Africa Development Community (SADC)’s development mechanism, the Revised Regional Indicative Strategic Development Plan (RISDP).
These aspirations are also found in the continental programme as encapsulated in the African Union’s (AU) Agenda 2063 Vision, and in the UN 2030 Agenda on Sustainable Development Goals (SDGs).

The economic development integration of SADC remains a key focus area.

3.2 State of the Nation Address (SoNA) February 2023 In his SoNA of February 2023, President Cyril Ramaphosa set the strategic course for the country for 2023/24.
He emphasised the need to grow the economy7, in light of the present situation of deep poverty, unemployment and inequality in the country, aggravated by the COVID-19 pandemic.

Following this directive given by the President, the Department would continue with its focus on economic diplomacy in support of the President’s initiatives.

This work would build on the foundation of the Economic Reconstruction and Recovery Plan (ERRP), which remains the common programme to rebuild the economy.
In this regard, he indicated that the African Union had resolved that trade could resume under the African Continental Free Trade Area (AfCFTA).

In this regard, South African companies are poised to play a key role in taking up the opportunities this presents for preferential access to other African markets8.

President Ramaphosa emphasised that the AfCFTA is about Africa taking charge of its destiny and growing its economies faster9.
The President further emphasised that South Africa would increase its efforts to develop Africa’s ability to manufacture 6 Annual Performance Plan 2023/24, Department of International Relations and Cooperation 7 CM Ramaphosa, SoNA 2023, the Presidency, February 2023 8 CM Ramaphosa, SoNA 2023, the Presidency, February 2023 9 Ibid Page | 7 40 vaccines10.

In this regard, the Department is looking forward to the support of its Missions, especially in Africa, to make this a reality11.

4.
4.

Planned policy initiatives The Department intends to enhance its operational capacity in this financial year.

In addition, the revival of the Partnership Fund for Development Bill remains a priority of the Department.

The Partnership Fund for Development Bill aimed at repealing the African Renaissance and International Cooperation Fund Act (51 of 2000) will be revived.

5.
5.

Legislative mandates of the Department According to the Strategic Plan 2020-2025, the Department is further responsible for regulation and implementation under the following Acts12: • The African Renaissance and International Cooperation Fund (ARF) Act, 2001 (Act 51 0f 2001): The Act establishes the Fund to enhance cooperation between the South Africa and other countries, in particular, African countries.
This is achieved through the promotion of democracy, good governance, the prevention and resolution of conflict, socio-economic development and integration, humanitarian assistance and human resource development.

The Foreign Service Act, 2019 (Act 26 of 2019) (the “Act”) and its Regulations came into force on 25 August 2022.

The purpose of the Act is to professionalise the Foreign Service to represent the Republic in an effective, coherent and comprehensive manner abroad.
The Act also provides a legislative mandate to the department by providing for the management, administration, accountability and functioning of a professional Foreign Service and the operational 10 Ibid 11 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 12 Strategic Plan 2020-2025, Department of International Relations and Cooperation Page | 8 41 requirements that are suitable and supportive of the operations of the Foreign Service in a global environment.
Oversight area: There are conflicting narratives in the APP, with the one part reporting that the regulations, codes and directives are currently being drafted to guide the implementation of the FSA, 2019.

The other section of the APP notes that the Foreign Service Act, 2019 (Act 26 of 2019) (the “Act”) and its Regulations came into force on 25 August 2022.
In 2022/23, the APP provides that the regulations are currently being drafted in order for the FSA 2019 to be operationalised and for it to come into force.

• The Foreign States Immunities Act, 1981 (Act 87 of 1981): This Act regulates the extent of the immunity of foreign states from the jurisdiction of courts of the Republic and provides for matters connected therewith.
• The Diplomatic Immunities and Privileges Act, 2001 (Act 37 of 2001): This Act provides for the immunities and privileges of diplomatic missions and consular posts and their members, heads of state, special envoys and certain representatives of the United Nations and its specialized agencies, and other international organizations and of certain other people.

Provision is also made for immunities and privileges pertaining to international conferences and meetings held in South Africa.
• The Measures and Guidelines for Enhanced Coordination of South Africa’s International Engagements and its annexures, approved by Cabinet in 2009, establish more effective measures and mechanisms to coordinate the conduct of international relations and the implementation of South Africa’s foreign policy.

• The White Paper on Foreign Policy, approved by Cabinet in 2011, assesses South Africa’s foreign policy against the rising expectations of the critical role of foreign policy to meet domestic priorities.
• Foreign Service Dispensation (FSD) is implemented in terms of the provisions of Section 3(3) (c) of the Public Service Act, 1994 (Act 103 of 1994), as amended, and is applicable to designated employees who serve in a foreign country at a South African mission abroad and fall within the scope of the Public Service Coordinating Bargaining Council.
Page | 9 42 The Department is also a custodian of international agreements (bilateral and multilateral) concluded by the Republic in terms of relevant constitutional provisions (sections 231(2) and 231(3) of the Constitution.

6.

Strategic outlook in the Strategic Plan 2020-2025 International responsibility is to build the country’s role as an influential continental and global actor and partner.
Key deliverables would be around the participation of South Africa in the Southern Africa Development Community (SADC) Organ on Politics Defence and Security Cooperation (Troika), as the Chairperson of the SADC Organ.

7.
7.

Performance delivery environment According to the APP, the Budget Vote for 2023/24 is being delivered in an environment that is still characterised by fiscal constraints, however, the department has embarked on a process to develop identified systems to improve operations’ efficiencies and effectiveness in automating business processes.

There have been marginal improvements in the implementation of the Digital Strategy 2020 – 2025, where several ICT infrastructure projects have been implemented.
The remainder of these projects will be finalised in the next financial year.

According to Vote 6 of the 2023 Estimates of National Expenditure, in the 2023/24 Financial Year, the Department received a total budget allocation of R6.6 billion (decrease).
In terms of allocations per programme: Programme 1 received a budget allocation of R1.7 billion (decrease), Programme 2 received a budget allocation of R3.3 billion (increase), Programme 3 received a budget allocation of R562.3 million (increase), Programme 4 received a budget allocation of R257.0 million (decrease) and Programme 5 received a budget allocation of R769.1 million (decrease).
In response to the challenges posed by the constrained fiscal environment, the Department engaged in a process of reviewing its global footprint and seeking accreditation on a non-residential basis, in a bid to contain costs.

This process resulted in the closure of several missions.

Page | 10 43 Due to the shortfall on the Compensation of Employees (CoE) budget, only critical vacancies can be filled, which has impacted negatively on service delivery and the achievement of the department’s mandate.
To mitigate the associated risks on the shortfall of the CoE, the department will focus on upskilling and reskilling its human resources.

In addition, responding to the challenges posed by the constrained fiscal environment, the department is engaged in a process of reviewing its global footprint and seeking accreditation on a non-residential basis, in a bid to contain costs.
Oversight area: The Department’s work is mainly realised through the 116 diplomatic missions in 102 countries in which South Africa has representation13.

As such, compensation of employees is the Department’s main cost driver.

The Committee has asked whether the process of reducing missions impacts positively to easing the burden related to the ceiling on the compensation of employees.
The Committee has further recommended that the Department have discussions with National Treasury on how to further manage its budget on the compensation of employees, without impacting on the mandate of the Department.

7.1.
7.1.

Strategic focus areas The Department is committed to continue to focus and deliver on the following strategic areas in the 2022/23 financial year, in line with the MTSF 2019-2024: 7.1.1 Building a better Africa The Department has put emphasis on the centrality of Africa as the centrepiece of South Africa’s Foreign Policy.

At the core of this focus, is South Africa’s Pan-Africanist vision of unity, solidarity and a common African destiny.
Africa remains at the centre of South Africa’s foreign policy trajectory.

Cognisant of the intrinsic link between South Africa’s national interest and Africa’s stability, unity and prosperity, the country has placed the advancement of the African Agenda at the centre of its foreign policy and has had considerable success in promoting the interests of Africa in 13 2023/24 APP of Department of International Relations and Cooperation Page | 11 44 different fora14.
South Africa remains a relevant and significant player in issues relating to the regional agenda.

This role is played both through bilateral and multilateral platforms.

The ability to contribute to humanitarian relief efforts and peace and mediation initiatives, places the country in a strategic position of influence15.

With regard to the AU, Morocco has been observed as active since re-joining the organisation16.
The issue of Morocco has been of concern to the Committee in terms of its non-action in facilitating self- determination for the people of Western Sahara, since its return to the AU.

As far as the situation in the Saharawi Arab Republic is concerned, it has been observed that the AU support for the cause appears to be weakening17.

During 2021, South Africa objected to the granting of observer status to Israel, a decision taken by the Chair of the AUC.
The Committee has also impressed upon the Department that the African Agenda should continue to be prioritised, even when rationalising missions, as far as possible, those in African countries should be assisted to remain relevant.

The APP provides that South Africa remains a relevant and significant player in issues relating to the regional agenda.

This role is played both through bilateral and multilateral platforms18.
It has been argued that the ability to contribute to humanitarian relief efforts, peace and mediation initiatives, positions the country in a strategic pole position of influence19.

The economic outlook for sub-Saharan Africa is, therefore, “clouded”.

COVID-19 has had severe negative economic implications and impacted on the attainment of the SDGs.
In terms of threats to security and safety, it has been reported that the continent has seen an increase in terrorism in all regions with involvement by outside players, including in the SADC region.
The 14 Annual Performance Plan 2023/24, Department of International Relations and Cooperation 15 Ibid 16 Ibid 17 Ibid 18 Annual Performance Plan 2023/24, Department of International Relations and Cooperation 19 Ibid Page | 12 45 situation in Cabo Delgado, in Northern Mozambique, remains a source of concern, as is that in eSwatini and Lesotho20.
The start of trading under the African Continental Free Trade Area (AfCFTA) Agreement, on 1 January 2021, marked the dawn of a new era in Africa’s development journey.

It is expected that over time, the AfCFTA would eliminate import tariffs on some of goods traded on the continent, as well as address non-tariff barriers21.

Regarding the African economic situation, economies have been struggling due to volatile oil prices.

The South African economy is not growing sufficiently.
Furthermore, COVID-19 has limited international trade and economic interactions with Africa.

According to the African Development Bank (AfDB), in its “African Economic Outlook” supplement22, published on 12 March 2021, although all economies in Africa have been affected by the pandemic, tourism-dependent economies, oil-exporting economies and other-resource intensive economies were the most significantly hit by the pandemic.
According to the AfDB, African policymakers must turn the COVID–19 crises into opportunities by focussing sharply on food and nutritional security23.

It is expected that Africa to consider re-thinking healthcare and social protection systems; nurturing the private sector, especially small and medium- sized enterprises and women-led firms; harnessing and better managing the natural resources revenue streams; by operationalising the AfCFTA; and by paying greater attention to climate change and resilience24.
20 Estimates of National Expenditure 2023, National Treasury 21 Tralac.org.za 22 www.afdb.org 23 www.afdb.org 24 Ibid Page | 13 46 Africa is the world's youngest continent with around 60% of the population currently under the age of 2525.

Within the next two generations, it is expected that this youthful population will increase more than 180%, compared to that of Europe and Asia, which will shrink by more than 21% and by almost 28% respectively26.
Towards the end of the century, it is estimated that Africa's youth population would reach 1.3 billion27, double the expected total population of Europe, and would represent almost half of the world’s youth28.

By 2034, the region is expected to have a larger workforce than either China or India29.

The youth bulge in Africa is seen as a huge advantage, provided they are engaged in productive economic activities.

The SADC’s integration agenda is anchored in political, security and economic integration.
To facilitate the process of integration, SADC has developed economic and strategic blueprints, in particular the SADC Industrialisation Strategy and Roadmap as approved by the summit in April 2015.

The strategy has been aligned to the AU Agenda 2063.

Critical to regional economic integration is the rapid implementation of the Tripartite Free Trade Area (TFTA), as well as the AfCFTA, to boost industrial and infrastructure development and enhance intra-regional trade.
The Department would closely monitor South Africa’s progress on the implementation of the Regional Indicative Strategic Development Plan (RISDP) projects30.

With regard to the Southern African Customs Union (SACU), the customs union has to be transformed into a vehicle for regional integration, capable of promoting equitable development, sustainable infrastructure development and industrialisation.
25 Annual Performance Plan 2023/23, Department of International Relations and Cooperation 26 Ibid 27 Ibid 28 Mo Ibrahim Foundation: Mo Ibrahim on youth innovation and leadership in Africa, November 2021 29 Ibid 30 Annual Performance Plan 2022/23, Department of International Relations and Cooperation Page | 14 47 7.1.2 Building a better world: Reform of the United Nations Security Council (UNSC) South Africa’s engagement in the UN is based on its commitment to promote an equitable rules- based multilateral system.
It is informed by the recognition that the UN does not reflect current global political and economic realities.

South Africa would continue to advocate for the reform of global governance institutions, as well as promote participation in selected multilateral fora outside the UN system as a force multiplier for the overall strengthening of multilateralism31.

South Africa’s engagement in the UN is based on its commitment to promote an equitable rules-based multilateral system.
It is informed by the recognition that the UN does not reflect current global political and economic realities.

South Africa’s engagement is to advance the reform of the existing global governance architecture with a view to improve the voice and representation of Africa and the developing world32.

It also intends to draw attention to the responsiveness of the UN system to the needs and challenges faced by Africa and developing states.
In line with South Africa’s foreign policy, the Department would continue to advocate for the reform of global governance institutions33.

With regard to the UN, UNSC reform and the granting of an African permanent seat(s) have not been achieved34.

7.1.3 Promotion of cooperation between the AU and the UN The APP provided that South Africa’s third two-year term on the UN Security Council (SC) ended in December 2021.

During its term, South Africa endeavoured to promote its views and values.
These were, among others, the importance of women in peace and security; championing the cause of children in armed conflict situations; the rule of law at national and international levels; post- 31 Estimates of National Expenditure 2022, National Treasury 32 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 33 Ibid 34 Ibid Page | 15 48 conflict reconstruction and development; and the peaceful resolution of conflict while fighting impunity.
Although South Africa has handed over the Chairship of the AU, it still supports closer cooperation between the AU and UN.

President Cyril Ramaphosa was appointed as AU Champion for COVID-1935.

7.1.4 Disarmament According to the APP, the Department’s assessment of international developments, the risk of a major conflict involving nuclear weapons and the radical consequences thereof couldn’t be discounted36.

The Treaty on the Prohibition of Nuclear Weapons entered into force on 22 January 2021.
Globally, there are an estimated 13 080 nuclear warheads at the start of 2021 of which 3 825 were active, deployed with operational forces37.

7.1.5 Climate change Despite the international community's ongoing fight against climate change, which kicked off during June 1992 in Rio de Janeiro, Brazil, global warming is continuing to escalate.

The APP provides that South Africa advocates for a global response that is equitable and that provides development space for developing countries38.
The expectation is that the developed countries should take the lead in emission reductions, closing the ambition gap, including those carried over from the pre-2020 to the post-2020 period and providing adequate means of implementation that would enable a response to the challenge.

In this context, South Africa's position on climate change has been defined.

Its national objectives are premised on a science- and rules-based international system with multilateralism at its core.
35 Ibid 36 Ibid 37 www.un.org 38 Annual Performance Plan 2022/23, Department of International Relations and Cooperation Page | 16 49 It is said the changes brought about by climate change would, in the medium to long term, include periodic to continual flooding, protracted droughts and heat waves causing forest and bush fires, reduced precipitation and reduction of glaciers in source catchment areas39.

It is expected that there would be a rise in conflicts over resources, particularly water, e.g.
over the Grand Ethiopian Renaissance Dam in Ethiopia, contested by Sudan and Egypt.

There would eventually be a need for more sustainable lifestyles in order to adapt to changing conditions40.

7.1.6 Gender According to the APP, South Africa’s commitment to gender equality is firmly established in the Constitution (1996).
Chapter 2 of the Constitution, also known as the Bill of Rights, guarantees full and equal enjoyment of all rights by all genders and the protection of people against any form of discrimination, including discrimination on the basis of race, sex, gender, religion, etc.

South Africa has ratified many international instruments aligned to its constitution relating to gender equality41.
It also ratified the Beijing Platform for Action, an agenda towards empowerment of women and girls, and made a firm commitment to mainstream gender within the Government by creating the National Gender Machinery led by the Department of Women, Youth and Persons with Disabilities 42 .

In 2021, South Africa ratified the International Labour Organisation (ILO) Convention 190 aimed at ending violence and harassment in the world of work.
7.1.7 South-South cooperation South Africa pursues mutually beneficial cooperation among countries and groupings of the South to develop common positions on political, economic, social and human rights issues as an effective response in addressing the historic marginalisation of these countries43.
Groupings of the South share 39 Ibid 40 Ibid 41 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 42 Ibid 43 Ibid Page | 17 50 the need to restructure the global political, economic and financial architecture to be more balanced, representative, inclusive and equitable, as well as to ensure that the international system rests on the important pillars of multilateralism and international law.
Groupings of the South include BRICS (Brazil, Russia, India, China and South Africa); IBSA (India, Brazil and South Africa); lORA (Indian Ocean Rim Association); the Group of 77 (G77) and China; and the Non-Aligned Movement (NAM).

The Committee encourages South Africa to continue to leverage strategic regional groupings such as BRICS, IBSA and IORA to improve trade flows and build consensus in multilateral groupings.
7.1.8 Cooperation with the countries of the North It has been reported that Europe has traditionally been the largest source of development cooperation with South Africa.

These engagements are focussed on addressing poverty; job creation and inequality.

The focus of the Department would continue with the consolidation of relations with these regional partners and to promote partnerships in support of South Africa's domestic priorities.
South Africa also engages with key global economic processes of the North, to promote African Agenda 2063 in particular, and the broader development interests of developing countries in general.

FDI from Europe is estimated at over R1 trillion with more than 2 000 companies operating in South Africa, employing South Africans, enhancing their skills and investing in the economy44.
7.1.9 Relations with regions of the world The inexorable change in the economic geography of the world economy, requires a more purposeful effort to diversify South Africa's trade and investment relations, to benefit from the rapid and dynamic economic growth in the Global South45.
In line with the focus on economic growth and sustainable socio-economic development, the Department would negotiate and navigate 44 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 45 Ibid Page | 18 51 international trends beyond its immediate region and the continent.
According to the APP, the Department’s international network of missions is seen as a strategic asset that is being leveraged to realise maximum return on the investment it represents for the people of South Africa.

Constrained FDI and investment flows, protectionism and the impact of US sanctions on (secondary) Iran and Huawei, have impacted on the South African domestic economy, for example the telecommunication sector.
South Africa would avoid taking sides on the growing tensions between China and the USA, to avoid compromising trade and investment with either country46.

The rivalry between China and the Russian Federation in Central Asia could possibly impact negatively on the cohesion in BRICS47.

South Africa would remain committed to a stable and peaceful Middle East and supports sustainable and just solutions to the various conflicts in the region.
The region is an important component of South Africa's global trade and is a critical energy partner to South Africa.

The strong focus on investment would be continued in the objectives pursued in 2020 to 2025, through South Africa's diplomatic engagement with the region.

South Africa would remain committed to supporting the Two-State solution and the people of Palestine48.
South Africa remained committed to a stable and peaceful Middle East, and supports sustainable and just solutions to the various conflicts in the region.

South Africa enjoys strong political, economic and technical relations with the countries in the East Asia and Oceania region.

Bilateral relations with countries in the region are pursued in line with priorities highlighted in the NDP and 2022 SoNA.
South Africa's trade and investment relations with the region are strong and growing, but there is substantial room for expansion.

Tourism from the region, in particular, has huge potential to contribute to South Africa's GDP.

46 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 47 Ibid 48 Ibid Page | 19 52 China is South Africa’s major trade partner, but there is a deficit in the trade balance.

China does not view South Africa as its only African partner.
Furthermore, China can be seen as an economic competitor for South Africa companies in Africa, especially in Eastern Africa.

7.1.10 Multilateralism Multilateralism remains a focal point of South Africa's foreign policy49.

South Africa's multilateral engagements are premised on the need to advance its national interest and safeguard its national positions.
It is in these forums that South Africa would advance the development priorities of developing countries and promote an equitable rules-based multilateral system, as identified in Priority Seven of the MTSF.

The Department would continue to communicate South Africa’s role and position in international relations in both the domestic and international arenas.

The Department would also continue to provide the requisite protocol and consular services.
During the financial year, the Department would continue with the closure of identified Missions, in an attempt to deal with the reduced budget at its disposal.

The drafting of regulations, codes and directives to operationalise the Foreign Service Act would also be finalised and approved.

8.
Budget allocation for programmes of the Department Table 1 Budget Allocation-Vote 6: International Relations and Cooperation 2023/24 Programme (R million) 2023/42 2024/25 1: Administration 1 715,6.00 1 732 100 49 Ibid Page | 20 53 2: International Relations 3 390,0.00 3 297 955 3: International Cooperation 562,3.00 517 155 4: Public Diplomacy & 257,0.00 Protocol 289 943 5: International Transfers 769,1.00 763 355 Total 6 517 872 6 600 508 Source: 2023/24 Annual Performance Plan of the Department of International Relations and Cooperation Over the medium term, the Department would continue to focus on advancing the African Agenda, including curbing the impact of the COVID-19 pandemic on the continent; participating actively in the United Nations; and enhancing the management of its infrastructure portfolio in foreign missions50.
For 2022/23, the Department has an increased budget allocation from R6 517 872 billion in 2021/22 to R6 600 508 billion in 2022/2351.

Total expenditure is expected to increase from R6.5 billion in 2021/22 to R6.9 billion in 2024/25, at an average rate of 2 per cent52.

The Department’s work is mainly realised through the 116 diplomatic missions in 102 countries in which South Africa has representation53.
As such, compensation of employees is the Department’s main cost driver, accounting for an estimated 43.2 per cent (R8.7 billion) of expenditure over the medium term54.

8.1 Managing infrastructure projects and properties 50 Estimates of National Expenditure 2022, National Treasury 51 Ibid 52 Ibid 53 Ibid 54 Ibid Page | 21 54 The Department’s international property portfolio comprises of 127 state-owned properties and more than 1000 rented properties.
Over the MTEF period, it plans to reduce its rental portfolio and the associated operational costs by developing one property in Luanda, Angola, and one property in Gaborone, Botswana on state owned vacant land.

It also plans to assess the condition of the state- owned properties within its portfolio over the medium term, beginning with those in Africa, to determine the need for maintenance, repairs and renovations to extend their lifespans.
To carry out these activities, R838.3 million over the medium term is earmarked in the Foreign Fixed Asset Management subprogramme in the Administration programme, of which R51 million is allocated specifically for assessing the condition of state-owned properties abroad.

8.2 Budget allocations per programme According to Vote 6 of the 2023 Estimates of National Expenditure, in the 2023/24 Financial Year, the Department received a total budget allocation of R6.6 billion.
In terms of allocations per programme: Programme 1 received a budget allocation of R1.7 billion, Programme 2 received a budget allocation of R3.3 billion, Programme 3 received a budget allocation of R257.0 million, Programme 4 received a budget allocation of R257.0 million and Programme 5 received a budget allocation of R769.1 million55.
8.2.1 Program 1: Administration The Diplomatic Academy would be a centre of excellence in foreign service training and the plan is to conduct a gap analysis on delivering training in AU/UN languages.

The current realities call for organisational renewal, innovation as well as the Department’s transition towards a digitisation system currently in progress in order to assist the organisation to achieve more and to deliver on its mandate and the five year strategic objectives.
It also requires the 55 Estimates of National Expenditure 2023 Page | 22 55 Department to streamline its processes with a specific emphasis on improving its digital environment through its Digital Strategy.

8.2.2 Programme 2: International Relations The Department would continue to pursue increased and improved access of South African products and services to foreign markets, which would contribute to the aim of increasing manufacturing and thereby contribute to an export-orientated economy.
The Department intends to become a catalyst and operate as a networking agent for “South Africa Incorporated”56.

The missions, in particular, are poised as key frontline role players in the pursuit of economic diplomacy and its component pillars such as FDI pledges, as well as the contribution towards inbound tourism promotion57.
8.2.3 Programme 3: International Cooperation The primary objective of this programme is to participate in initiatives of international organisations and institutions in line with South Africa’s national values and foreign policy objectives.

Multilateralism remains a focal point of South Africa's foreign policy58.

South Africa's multilateral engagements are premised on the need to advance its national interest and safeguard its national positions.
It is in these forums that South Africa would advance the development priorities of developing countries and promote an equitable rules-based multilateral system, as identified in Priority Seven of the MTSF.

This is achieved through South Africa’s engagements within the Global system of governance; continental cooperation; South- South cooperation; North-South cooperation to advance and support national priorities, the African Agenda and the developmental agenda of the South.
In line with 56 Annual Performance Plan 2022/23, Department of International Relations and Cooperation 57 Ibid 58 Ibid Page | 23 56 South Africa’s foreign policy, the Department would continue to advocate for the reform of global governance institutions59.

8.2.4 Programme 4: Public Diplomacy and State Protocol According to the APP, the Department aims to implement and monitor the effectiveness of the Public Diplomacy strategy.
Through this programme, the Department would ensure rapid and timeous support to missions on domestic and global developments.

Key messages would be distributed to missions on domestic and global developments.

Several platforms would be utilised to inform and promote South Africa’s foreign policy to domestic and international audiences, thus making an effort to ensure that foreign policy decision-making process reach the grass roots.
8.2.5 Programme 5: International Transfers The Department would continue to transfer payments, which arise from obligations undertaken by South Africa at international, regional and subregional multilateral levels, and to its entity, the African Renaissance Fund60.

The MTSF (2019 – 2024) requires that South Africa contributes to a better South Africa and better region and to secure the advancement of South Africa’s national interest.
This could only be realised through the payment of South African contributions to international organisations in full and on time.

Therefore, under its Outcome, “Agenda 2030 and Agenda 2063”, it is required that South Africa honours its obligations towards the UN, SADC and the AU, including the institutions hosted in South Africa (i.e.
Pan-African Parliament, New Partnership for Africa’s Development, African Peer Review Mechanism, African Commission on Nuclear Energy and Pan-African University on Space 59 Estimates of National Expenditure 2022, National Treasury 60 Estimates of National Expenditure 2022, National Treasury Page | 24 57 Science (PAUSS) and trans-frontier conservation areas.

This would require the settlement of all assessed contributions as required by the respective international organisations.
The budget allocation for Programme 5: International Transfers for the 2022 MTEF, consists of the Departmental Agencies’ allocation to the African Renaissance and international Cooperation Fund, as well as international membership contributions to organisations such as, among others, the AU, SADC, UN, India-Brazil-South Africa Trust Fund, and the Commonwealth of Nations.

9.
9.

The African Renaissance and International Cooperation Fund (ARF) The African Renaissance and International Cooperation Fund provides cooperation funding for initiatives between South Africa and other countries that relate to the promotion of democracy and good governance, the prevention and resolution of conflicts, socioeconomic development and integration, humanitarian assistance and relief, and human resources and infrastructural development.
9.1 Annual Performance Plan 2022/23 of the African Renaissance Fund The APP provides that the ARF operates through an Advisory Committee61 which is comprised of: The Director General (DG) or delegate; 3 officials of the Department appointed by the Minister; 2 officials from National Treasury appointed by Minister of Finance.

The Advisory Committee makes recommendations to the two Ministers on the disbursements of funds through loans or other financial assistance.
The DG is the accounting officer of the Fund in terms of the PFMA 1999.

The DG has created a secretariat consisting of officials to assist with disbursement of funds.

Officials assist with monitoring and administration of projects relating to the fund.

The ARF has received successive unqualified audit opinion without findings for the past three financial years in succession.

61 Ibid Page | 25 58 ARF budget allocations over the Medium-Term Expenditure Framework total R160,4 million.
The budget allocation for the 2023/24 is R49,9 million.
The ARF will implement the 2020 – 2025 Strategic Plan in a constrained fiscal environment with significant reductions in annual allocations.62 In terms of policy initiative, the current Strategic Plan and APP of the ARF, provide that the African Renaissance and International Cooperation Act 2000, should be amended to provide for a name change of the ARF to the South African Development Partnership Fund; and for the designation of a Head, as an Accounting Authority, who would be responsible, together with the Secretariat, for the administration of the fund.
The fund would remain an entity listed in terms of the Public Finance Management Act, 1999 (Act 1 of 1999).

10.

Findings by the Committee 10.1The Committee welcomed the presentation of the Department and noted the reduction in budget allocations to the Department 10.2The Committee noted the impact of currency fluctuations on the expenditure ceiling of the Department given the expenditure associated with compensation of employees and operational costs.
10.3The Committee commented on the upcoming BRICS Summit and the matters pertaining to the arrest warrant issued by the International Criminal Court (ICC).
10.4The Committee sought clarity on the specific reforms that the Department seeks to achieve in terms of Institutions of Global Governance 62 Annual Performance Plan of the African Renaissance fund Page | 26 59 10.5The Committee enquired about the extent to which the ARF plays a role in conflict resolution and humanitarian challenges that emanate from conflicts.
10.6The Committee requested that details be provided by the Department on its Digital Strategy and also enquired about the new service provider that would replace BT-SA and assist the Department with its ICT infrastructure 10.7The Committee sought clarity on what constitutes Foreign Direct Investment (FDI) and how are FDI targets formulated 10.8The Committee noted the dynamics of maintaining strategic relations with countries of the Global North while also intensifying South-South relations.
In this regard, specific mention was made of beneficiation of trade in raw materials for the African continent in its relations with both the European Union and BRICS.

10.9The Committee also noted the Envoy sent by President Ramaphosa to the US particularly given the discussions around African Growth and Opportunity Act (AGOA).

10.10The Committee commended the Department for its efforts in evacuating South African citizens from Sudan and returning them safely to South Africa.
10.11The Committee highlighted the need for the Department to be vigilant on its risk mitigation measures 10.12The Committee also emphasised the importance of South Africa being clear on its priorities, maintaining its strategic bilateral relations in a balanced way while also ensuring its sovereignty is respected Page | 27 60 10.13The Committee sought clarity on vacancies in the Department as well as the potential cost reductions associated with strategic reduction of missions 10.14The Committee also sought clarity on whether the Department would resolve challenges associated with construction of the Pan African Parliament (PAP).
The Committee also expressed concerns that South Africa would eventually lose the privilege of hosting the PAP should the matter not be resolved.

10.15The Committee emphasised the need for more intensive operationalisation of the Foreign Service Act, specifically in terms of regulations.

10.16The Committee also highlighted the importance of the strategic use of the ARF in terms of soft power.
However, the Committee also emphasised the importance of the migration of the ARF into the South African Development Partnership Agency (SADPA) 10.17The Committee noted that the Committee was working with other government departments in terms of its activities and suggested that the Department continue to strengthen its cooperation with other Departments on a continuous basis 10.18The Committee further noted that while a humanitarian crisis is not something that can be predicted, the ARF must make necessary adjustments when necessary and find innovative ways of achieving its mandate within a more financially constrained space 11.
Responses by the Department 11.1The Department stated that AGOA was important to South Africa and continue to engage in strategic bilateral relations with the US Page | 28 61 11.2The Department informed the Committee that the ICC matter is in the hands of the Inter- Ministerial Committee headed by the Deputy President of the Republic 11.3The Department emphasised that the ARF was an important soft power tool for South Africa and reminded the Committee that the ARF has played a role in providing humanitarian assistance to countries like Mozambique during storms and flooding that recently affected the country 11.4The Department highlighted that South Africa does not impose itself on situations and when it does act in conflict situations it does so when it is given a mandate to do so.
As an example, the Department expressed that SADC mediation efforts and interventions in DRC came from a SADC Mandate 11.5The Department then briefly described the ICT upgrades undertaken by the Department to enhance its capacity 11.6The Department emphasised that its economic diplomacy efforts are premised on benefitting South Africa and its businesses through enhanced trade and Foreign Direct Investment 11.7The Department noted that reform of global institutions of governance was of significant importance.
The Department used the example of the United Nations Security Council having permanent representation and veto power for the African continent in terms of a specific reform South Africa seeks 11.8The Department stated that stakeholder engagement was an important approach to address the perception of elitism regarding International Relations issues 11.9The Department noted that while it does seek to enhance aspects of its stakeholder outreach and youth development, there is currently limited budget for initiatives such as the Cadet Programme and Internships Page | 29 62 11.10In terms of recruitment issues, the Department stated that the department has capacity challenges and in some instances has also experienced striking Locally Recruited Personnel.
The Department further stated that recruitment has been finalised on certain posts but critical vacancies remain and there have been allocations from Treasury for some of the critical vacancies 11.11The Department informed the Committee that regulations have been drafted in terms of the Foreign Service Act but they are awaiting finalisation of the approval process 11.12The Department touched on the issues in Sudan and noted that they have emanated from challenges emerging as a result of integration issues in the army ranks 11.13The Department acknowledged the slow pace of migration from the ARF to SADPA and expressed that this process is ongoing 11.14The Department also responded to issues around PAP which they stated were due to delays in Public Works processes.
The Department also stated that South Africa remains committed to hosting the PAP as part of its commitment to the African Agenda.

11.15The Department clarified that in terms of its ICT service provider, BT-SA is being replaced by Brilliant Telecoms and that a migration process would be undertaken in this regard 13.
Recommendations Having considered the Strategic Plan 2020-2025 and the Budget Vote 6 of the Department 2023/24 and its entity, the Committee recommends that the Minister should consider the following and report on progress within three months of adoption by the National Assembly of this report: After discussions during the briefing, the Committee concluded as follows: Page | 30 63 13.1 The Department must continue to engage National Treasury in terms of its budget allocations and the continued impact of currency fluctuations 13.2 The Department must provide the Committee with continuous updates on a quarterly basis regarding its performance targets and expenditure 13.3 The Committee advised the Department to interrogate some of its assistance criteria in terms for the ARF to ensure it continues to achieve its stated strategic objectives 13.4 The Committee noted the challenges of maintaining strategic relations in a highly contested political contexts within the international system, but the Committee feels the Department must enhance its communication of its policy perspective to ensure trading partners are clear on the South Africa position.
13.5 Important events such as the upcoming BRICS and other engagements conducted by South Africa must be popularised through enhanced Public Diplomacy and stakeholder outreach activities 13.6 The Committee further notes that the matter of the ICC matter has been assigned to an Inter- Ministerial Committee by the President of the Republic Mr Ramaphosa which will be lead by the Deputy President of the Republic Mr Paul Mashatile.
The Department must keep the Committee appraised of these aspects and also keep the Committee informed about preparations in terms of the upcoming BRICS Summit 13.7 The Department must consider enhancing its internal ICT capacity to reduce the need for external service providers to reduce costs and to reduce potential security vulnerabilities that may appear at the conclusion of contracts with service providers 13.8 The Department must also provide the Committee with a briefing on its ICT issues to provide clarity on its previous dispensation, the current status-quo and the Department's aspirations in terms of improving its ICT infrastructure Page | 31 64 13.9 The quantification of FDI must be considered and communicated more effectively to the general public to raise awareness about the importance of South Africa’s economic diplomacy efforts 13.10 The Committee expresses its satisfaction with the Department's efforts in returning South African citizens stranded in Sudan back home safely and is confident that the Department will continue to provide the required support to South African citizens in distress abroad.
13.11 Conduct an assessment whether the cost-reduction initiatives through closure of some South African Missions abroad, bear the intended impact on the challenges brought about by the ceiling on compensation of employees.
The reduction should not disadvantage South Africa and the African continent To the National Assembly 13.12 The Parliamentary Oversight Model must be reviewed to allow the Portfolio Committee on International Relations and Cooperation to have more regular oversight visits to South African Missions abroad, in order to have a holistic approach on the performance abroad of the Department of International Relations and Cooperation.
Being mindful that cost considerations may not allow oversight visits to all the South African Missions abroad, the Portfolio Committee has adapted to the new normal, and has conducted a novel oversight visit, virtually.

It is the hope of the Committee that Parliament will embrace this innovation into Oversight and Accountability Model.
13.13 The Parliamentary Oversight Model should allow the Portfolio Committee on International Relations and Cooperation to have more regular oversight visits to project areas of the African Renaissance and International Cooperation Fund (ARF), in order to have a holistic approach on the performance abroad of the entity of the Department of International Relations and Cooperation.
Page | 32 65 13.14 The Portfolio Committee should be allowed to conduct oversight visits to international organisations that the Republic of South Africa is a state-party.

This would enable the Committee to assess the impact of the Department’s participation on the overall outcomes at such forums.

The Committee recommends that Budget Vote 6: International Relations and Cooperation 2023/24 be passed.

14.
14.

Conclusions Having engaged the Department on its APP as well as the APP of the ARF, the Committee determined that further briefings on certain matters would be needed as the Committee conducts is oversight on the Quarterly Performance of the Department as it works to achieve the targets contained in the APP.

The Committee would continuously monitor the activities of the Department and its entity the ARF Report to be considered.

Sources and references 1.


National Treasury, 2023 Estimates of National Expenditure Budget Vote 6: International Relations and Cooperation 2.

Constitution of the Republic of South Africa 1996 3.

Department of International Relations and Cooperation: Strategic Plan 2020-2025 4.

Department of International Relations and Cooperation Annual Performance Plan 2022/23 5.

African Renaissance and International Cooperation Fund: Strategic Plan 2020-2025 6.
African Renaissance and International Cooperation Fund: Annual Performance Plan 2023-24 7.

State of the Nation Address, February 2022 8.

The National Development Plan 2030: Chapter 7 Page | 33 66 9.

Government’s Medium Term Strategic Framework 2019-2024 10.

Priority 7 of Government’s Medium Term Strategic Framework 2019-2024 Page | 34 67 3.
Report of the Portfolio Committee on Communications and Digital Technologies on its deliberations on Budget Vote 4: Government Communication and Information System (GCIS) and its Entity MDDA, dated 9 May 2023 The Portfolio Committee on Communications and Digital Technologies (the Committee), having considered Budget Vote 4: Government Communication and Information System (herein referred to as ‘the Department’) and the Annual Performance Plan (APP) for 2023/24, reports as follows: 1.
Introduction Section 55(2) of the Constitution of the Republic of South Africa, Act 108 of 1996, states that the National Assembly (NA) must provide for mechanisms (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; and (b) to maintain oversight of (i) the exercise of national executive authority including the implementation of legislation, and (ii) any organ of state.
In terms of the Public Finance Management Act (PFMA), the Accounting Officers must provide Parliament or the relevant legislature with their respective institution’s Medium-Term Strategic Framework (MTSF) and, where applicable, with its Annual Performance Plan.

The Money Bills Amendment Procedure and Related Matters Act was promulgated in 2009 and provided Parliament with powers to reject or recommend the approval of departments’ budgets.
The Act also makes provisions for implementing recommendations from the committee’s oversight reports.

The Committee met with the Department and the Media Development and Diversity Agency (MDDA), herein referred to as “the Agency”, on Tuesday, 5 May 2023.

The meeting with the Department and the Agency was held virtually.

1 68 2.
1 68 2.

The Department’s APP 2023/24 An APP sets out what the institution intends to do in the upcoming financial year and during the Medium-Term Expenditure Framework (MTEF) 2023/24 – 2025/6 to implement its Strategic Plan.

The document sets out performance indicators and targets for budget programmes and sub-programmes where relevant to facilitate the institution realising its goals and objectives set out in the Strategic Plan.

2.1.
2.1.

Mandate The primary mandate of the GCIS is to provide timely, accurate and reliable information.

The major challenge in this era is various sources of information, mainly social media.

Therefore, the role of GCIS is critical in rebuilding trust and responding to misinformation and false information.
Section 195(g) of the Constitution of the Republic of South Africa of 1996 forms the basis of the formation of the Department, where it stipulates that to foster transparency, the public should be provided with timely, accurate and important information and all-time accessible.

In 1998, the South African Communication Service was dissolved, and the Department was established by Cabinet, primarily based on recommendations contained in the report of the Task Group on Government Communications (COMTASK).
Therefore, the Department is responsible for providing strategic leadership and coordinating a government communication system that ensures that the public is informed and has access to government information, programmes and policies that benefit them.

The GCIS, in pursuit of fulfilling its vision to meet the communication and information needs of government and citizens to ensure a better life for all, publishes the Vuk’uzenzele newspaper, among other publications.
The core focus of Vuk’ is to meet public information 2 69 needs on socio-economic opportunities that our new democracy has created and to inform the public on how to access these opportunities.

2.1.1.

Policy Mandate The GCIS’s strategy is underpinned by the following: • The revised 2019-2024 National Communication Strategy Framework (NCSF) was approved by Cabinet on 17 October 2022.
Working with other government departments, the GCIS will drive the implementation of the NCSF across the communication system over the Medium Term Expenditure Framework (MTEF) period.

• The Government Communication Policy was approved by Cabinet on 22 August 2018.

• The Revised 2019-2024 Medium-Term Strategic Framework.

3.

The Department’s Situational Analysis 3.1.


Problem Statement Following the attainment of freedom in 1994, the democratic dispensation inherited an unequal society where most people did not have access to information that could empower them to live better lives.

Since South Africa is now part of the global community, transformed information dissemination structures are a key focus area in marketing the country locally and internationally.
As stated above, the Department was established in terms of Section 239 of the Constitution of the Republic of South Africa of 1996 and as a strategic unit in the Presidency in terms of Section 7 of the Public Service Act, 1994 (Act 103 of 1994).

This constitutional and legislative mandate empowers the Department to use its strategic location to coordinate and lead communication-related projects that straddle almost all government departments.
3 70 The Department is further mandated to ensure transparency in government, and that relevant government structures provide information that is timely, accurate and accessible.

Its coordination role cuts across all three spheres: national, provincial, and local government.

Although it has a constitutional mandate, it still relies on the power of persuasion to compel some departments to fulfil their communication obligations.
The Towards a 25-Year Review report on government performance highlights a wide range of areas where service delivery has improved.

It also reveals several areas that government still needs to address, such as building social cohesion and nation-building and advancing inclusive economic growth.

Given the country's economic challenges, it is imperative to ensure the prudent use of state resources by delivering services effectively and efficiently in a cost-effective manner.
Doing more with less should be considered under these dire financial circumstances.

Information dissemination and direct interaction with communities remain key in empowering and rallying society towards a shared vision for a better South Africa.

The government has seamlessly adapted to the modern ways the public consumes or receives information by embarking on an intensive penetration and sustained presence in digital media.
However, South Africa remains an unequal society, with some parts of the country still without internet connectivity while others are yet to enjoy the benefits of technology.

The fervent drive to boost economic growth will culminate in attracting more potential investors and visitors to the country, catalysing the creation of much-needed jobs.
By providing developmental-related information, such as available government programmes and services that empower citizens to actively improve their lives actively, our provincial and district offices – through the District Development Model (DDM) – contribute to community progress.

By consistently communicating the remarkable progress the government has achieved in providing sustained service delivery to communities, the Department helps spread a positive message of hope to the public.
Also significantly, using all our official languages 4 71 in communicating with the public, especially those in the far-flung rural areas with minimal access to the mainstream media, contributes immensely to nation-building and a sense of belonging.

3.2.

External Environment Government communicators must move from rhetoric communications towards activism communication, bringing about a deliberate change in behaviour through the basics of Development Communications.
The updated National Communication Strategy Framework draws on the 2022 State of the Nation Address (SoNA), where President Cyril Ramaphosa rallied citizens under the theme of “Leave no one behind”, which serves as a foundation for government communicators to adapt their communications strategies for the remainder of the MTSF period.
These priorities informed the Department’s coordination of the government-wide communications programme and its support as a Department within The Presidency to the President as the Communicator-in-Chief, the Deputy President and the Minister in The Presidency.

The government’s performance against these priorities assumed diverse forms, all presenting a combination of communication opportunities and challenges.
For the remainder of the 6th administration, the GCIS will strongly advocate and implement an Izimbizo Programme for members of the Executive as part of implementing the National Communication Strategy Framework (NCSF) approved by the Cabinet in October 2022.

Izimbizo is an interactive, direct and unmediated communication platform that brings the government closer to the people and promotes participatory democracy.
The proposed Izimbizo Programme is part of a suite of communication tools for principals to articulate messages around the government's priorities, as outlined in the 2023 State of the Nation Address (SoNA) and explain government interventions around energy challenges and other socio-economic issues the country is dealing with.

The Cabinet- approved NCSF theme will guide the proposed Izimbizo Programme: “Leave No One Behind”.
This is a rallying theme promoting partnerships and building national consensus in transforming the country to improve the lives of all South Africans.

The GCIS will 5 72 coordinate the programme with Heads of Communication (HoCs) in national departments, provinces and municipalities.

From April 2023 onwards, the GCIS, in collaboration with CoGTA, will plan an Imbizo for the President and Deputy President every two months.
In addition, members of the Executive, through the Minister in the Presidency, will be requested to upscale their stakeholder outreach programme so that they can hold Izimbizo at least once a month, whether virtually, in a town hall or a rural area.

Attention must be given to deep rural areas, the elderly, farmworkers, informal settlements and taxi/truck drivers, and settings where a high degree of vulnerability prevails due to their socio-economic situation.

3.3.
3.3.

Internal Environment In the coming period, the GCIS will strengthen the coordination of government communication to report the progress in implementing the Medium-Term Strategic Framework, the Economic Reconstruction and Recovery Plan, and the 5-Point Energy Action Plan, amongst others.

GCIS will also focus on strengthening government- community interaction through coordinating and driving the community outreach programme, commonly known as the Imbizo programme.
The improved government- community interaction will enhance the ability of the government to communicate directly with the people through unmediated channels.

This will also help bridge the social distance between communities and government leaders.

GCIS applied itself to the tasks at hand in the past two years despite significant constraints that have shifted the organisation from “doing more with less”, during years of budget reductions, to “doing less with less”.
GCIS’s classification as an essential service during the COVID-19 pandemic did not exempt the organisation from the social or economic difficulties experienced by all other South Africans.

Illness among staff, a moratorium on appointments, insufficient resources to sustain high-impact, costly campaigns on media with the biggest reach and other constraints have taken their toll on the centre of the government communication universe.
6 73 The national macro-originations of the government process of 2019/20 resulted in the creation of two (2) new chief directorates in GCIS, i.e.

Media Policy and Entity Oversight.

The GCIS organisational structure was last submitted as a start-up in March 2019.

The Department is reviewing the Organisational Structure to align it with the strategy and mitigate the structural challenges that have existed over time.

The Organisational Structure Review project will be finalised by 31 March 2023.
Since communication is a 24-hour endeavour, discussions are also underway on the appropriate operating model for the GCIS.

The Department will implement the reviewed organisational structure with effect from April 2023.

Implementing the approved MTEF Recruitment Plan will be revised and synchronised with implementing the outcomes of the organisational structure review project and the operational model for the organisation.
The Department will continue to recruit and retain a suitably qualified, capable and skilled workforce aligned to the EE targets of the Department and to maintain the vacancy rate below 10 per cent as prescribed by the Department of Public Service and Administration (DPSA).

The success of the GCIS is hugely dependent on the commitment and morale of its staff.
Despite the challenges that have beset the broader Public Service, including curbing the wage bill and competing for scarce and expert resources, the Department has managed to keep the vacancy rate below 10 per cent from March 2020 as prescribed by the Department of Public Service and Administration (DPSA).

As of 30 December 2022, the vacancy rate was 9.89 per cent.

Representation of women at the SMS level has hovered above 50 per cent and, at the time of this compilation, was achieved at 56 per cent.
Support for women in senior management is expressed through the Department’s 8-HoDs Principles Action Plan.

The Department has 13 persons with disabilities, translating to achievement of 3 per cent against the national target of 7 per cent.

Through the Workplace Skills Plan, the Department prioritised upskilling its workforce through training aligned to the critical and core functions of the GCIS.
With the advent of 7 74 the Covid 19 pandemic, greater demand was seen for 4IR-aligned skills to facilitate digital- based work execution and working remotely.
This included Critical Thinking, Applied Risk Assessment and Management, Change Management, Cyber Security, PowerPoint, Emotional Intelligence, Time Management, OHS, Programme and Project Management, Strategic Capabilities and Leadership in the Public Service, Local Governance, Operation of Zoom and Skype, Public Sector ERM, Micro point BI, Asset Management, Presentation and Facilitation Skills and Graphic Design.

Between April 2020 and September 2022, the GCIS appointed 12 new SMS members.
These critical appointments included all 4 Exco members, correcting a situation whereby GCIS had been led by an interim leadership (acting positions for over five years.

As of the 2020 academic year to date, the department awarded 69 bursaries in line with the core and critical skills of the Department.

Fifty-one per cent of the WSP was implemented for upskilling employees by the end of September 2022.
The Department encourages staff members to study independently and, after completing the self-initiated study, apply for Recognition of Improved Qualification (RIQ) as a once-off cash bonus.

The Department has recruited and hosted graduate interns in the last two and a half years, and the recruitment of graduate interns increased the representation of youth within GCIS from 34 per cent in 2020/21 to 35.1per cent in 2022/23.

4.
4.

Annual Performance Plan 2022/23 – 2024/25 The Department is allocated R750,749 million in 2023/24, R782,847 million in 2024/25 and R816,429 million in 2026/26.

Over the 2023/24 financial year, GCIS has been allocated R750,746 million, spread across the three programmes.

Programme 1 (Administration) is allocated R199 million; Programme 2 (Content Processing and Dissemination) is allocated R428 million; and Programme 3 is allocated R123,7 million.

See the table below for the breakdown.


8 75 The bulk of the department’s budget focuses on its core functions.

Content Processing and Dissemination, Intergovernmental Coordination and Stakeholder Management receive 75 per cent of allocations, with 25 per cent to Administration.

GCIS will bolster strong communication partnerships across government, business, civil society and the media through National Communication Partnerships to drive campaigns of national interest.
The GCIS allocation of R750,7 million has been allocated to economic classifications as follows: Compensation of employees accounts for 38 per cent of GCIS's total budget and amounts to R284,1 million.

The department’s number of permanent posts is expected to be 434 for the 2023/24 financial year.

Goods and services account for 27 per cent of GCIS total budget and amount to R201,8 million.
Transfers payments to two entities account for 34 per cent of GCIS total budget and amount to R256,6 million (R219,526 million for Brand SA and R37,039 million for Media Development and Diversity Agency).

Capital assets account for 1 per cent of GCIS total budget and amount to R8,2 million.

The GCIS is committed to sourcing its goods and services from black-owned businesses operated by designated women and youth groups.
The Procurement Plan was finalised during the financial year 2022/23 in support of this government-wide effort on economic transformation.

The department is also committed to procurement that enables economic enhancement of women, youth and people with disabilities.

Targets will be set for procurement from these designated groups.

9 76 4.1.
9 76 4.1.

Expenditure Overview To expand its reach to more South Africans, the Department aims to harness and coordinate various communication structures across the government communication system over the medium term.

Essential to doing this economically is joint planning, the sharing of resources and the integration of efforts among government departments.

The GCIS’ appropriation over the 2022 MTEF period is R719,9 million in 2022/23, R710 million in 2023/24 and R746,8 million in 2024/25.
Compensation of employees comprises, on average, 39 per cent, and transfer payments in respect of the appropriation to two public entities – Brand South Africa (Brand SA) and the Media Development and Diversity Agency (MDDA) – comprise 35 per cent of the budget over the medium term.
Seventy-five per cent of the department’s allocation over the medium term is jointly spent in the core branches Programme: Content Processing and Dissemination and the Programme: Intergovernmental Coordination and Stakeholder Management.

The remaining 25 per cent of the total departmental appropriation is allocated to the Programme: Administration.
Over the medium term, the department will continue to focus on providing and facilitating strategic government communication and encouraging active citizen participation by rendering core communication activities and driving key national priority campaigns.

The national digital and physical distribution of the Vuk’uzenzele newspaper is integral to the department’s rendering of core communication services.
It is the only national publication focused on the government’s key priorities, emphasising service delivery programmes and the opportunities created by the government.

The department aims to print and distribute 10.2 million copies of the newspaper annually at R63 million over the medium term in the Products and Platforms and Communication Service Agency subprogrammes in the Content Processing and Dissemination programme.
The department will conduct activations nationwide that entail direct interactions with citizens, primarily in area‐specific local languages.

Key activities include printing pamphlets and information brochures and advertising on social media, radio, and 10 77 television.

Activations will be initiated based on domestic and foreign media engagements and important government and national events such as the State of the Nation Address.
These functions are performed by the department’s regional offices for R11 million each year over the MTEF period in the Provincial and Local Liaison subprogramme in the Intergovernmental Coordination and Stakeholder Management programme.

Over the medium term, the department plans to drive national priority campaigns on gender‐based violence, anti‐corruption in government, and the economic reconstruction and recovery plan.
These campaigns aim to raise awareness and inform the public on progress in dealing with these challenges.

They will be conducted through social media, community radio stations, television, and newspapers, distributing leaflets and flyers.

For this purpose, R60 million over the MTEF period is allocated to the Media Buying subprogramme in the Content Processing and Dissemination programme.
As the department relies on human resources to carry out its mandate, spending on compensation of employees accounts for 38.4percent (R890.3million) of its total budget, increasing at an average annual rate of 2.1 per cent from R291.2 million in 2022/23 to R309.6 million in 2025/26.

Capital expenditure and transfers to the department’s entities, Brand South Africa (BSA) and the Media Development and Diversity Agency (MDDA), account for 35.3 per cent.
The persistent under-allocation of resources (financial and human capital) to GCIS threatens the Department’s operations and existence.

This will render the department ineffective and unable to achieve its targets, leading to a collapse of the government-wide communication system.

While the notion of doing more with less may have been the proposition a few years back, this no longer holds.
This makes it critical to coordinate and institutionalise the zero-based budgeting process for efficient resource allocation to meet the priorities set by the department.

11 78 5.

Explanation of Planned Performance Per Programme 5.1.

Programme 1: Administration: (R199.1 million) Programme1 provides strategic leadership in government communication to ensure coherence, coordination, consistency, quality, impact, and responsiveness of government communication.
The Office of the Director General (DG) supports the Minister in The Presidency as the Executive Authority to oversee the Department and its public entities reporting to it and manage the interface between the Ministry, Cabinet, Parliament, and the Department.

There is an allocation of R199.1 for 2023/24 compared to R189.4 million for the last financial year.

This is about a 5 per cent increase from the previous year's allocation.
The additional funding will assist towards ICT infrastructure, enabling the advancement of digitalisation transformation projects to improve overall operational efficiencies for GCIS.

The focus will be on upgrading the bandwidth at the head office and at all provincial offices, which will be an essential enabler of the GCIS’s digital transformation journey.

Over the year, the GCIS will harness technology and systems to improve effectiveness and efficiency.
Staff training will be conducted to develop more relevant skills, and 4IR responsive communication workforce will also be implemented.

Aged ICT infrastructure will be refreshed over the MTEF period to reduce the risks of infrastructure failure and cyber security threats.

Existing systems and automated processes will be redeveloped with the latest software technologies.

The department will also adopt cloud-based systems like Microsoft Office 365 and Exchange Online to enhance workforce mobility.
12 79 With the finalisation of the organisational structure, the staff placement process, based on matching skills to job functions, will be implemented informed by the Skills Audit process outcomes.

Upskilling of staff focused on career pathing, and progression will also feature prominently in revitalising staff morale and creating a work environment that rewards excellence and innovation.
The organisation will also focus on recognising and rewarding talented and committed individuals who live the organisational values in line with the GCIS Integrated Rewards and Recognition Model.

Over the medium term, the Office of the CFO will continue providing financial-related advice and support by monitoring revenue and expenditure trends and ensuring that the department remains within spending limits approved by Cabinet.
This will be achieved through in-year monitoring of the department's expenditure by the Budget Committee.

Vision 2030 of the NDP, calls for a commitment to a procurement approach that stimulates the economy and creates jobs and further recommends a need for oversight over tenders, prohibition of public servants from doing business with the State and making individuals liable for losses in proven cases of corruption.
To give effect to these guiding policies over the medium term, the department will focus on training employees on ethics management, amplifying internal communication on the relevant policy directives, reviewing SCM policy and strengthening procurement compliance and reporting through staff engagements and submission of procurement plan and deviations to National Treasury (through the Office of the Chief Procurement Officer) for publishing every quarter.
The revision of the SCM policy will affect the achievement of Reconstruction and Development (RDP) goals and Preferential Procurement Regulations, 2022 (PPR2022).

It will further streamline the processes for speedy delivery of services, as well as contribute to economic growth.

13 80 5.2.

Programme 2: Content Processing and Dissemination: (R 428 million) Programme 2 is where the content and distribution of GCIS programmes reside.
The Communications services agency is tasked with capturing the content of all government programmes via radio, photographic and video services.

Much of the current targets and for the previous years were based on the output of a task, as opposed to the outcome and the impact that the citizen will derive.

The programme has been allocated R428 million for 2023/24 compared to R409.7 million during the 2022/23 financial year.

This is about a 4.5 per cent increase from the previous year’s allocation.
In 2022/23, the Marketing team coordinated and implemented a government exhibition, which brings government products and services to the people.

The success of this initiative has led to the decision to introduce a new indicator and have these exhibitions on a more frequent basis and spread out to the provinces of South Africa.
Another new indicator is ensuring that the Communication Service Agency (CSA) team always strives to inform and educate government departments on the GCIS service offering instead of attracting more clients.

The Chief Directorate: Policy and Research continue to guide government communication and track the nation's trust.

The results inform government decision- making and suggest ways to reach more citizens on government programmes and developments.
The tracker study is conducted through independent research companies 14 81 and measures public opinion on various government priority areas.

It is the largest research project of the GCIS.

The Government Communication Excellence Tool (G-CET) measurement provides the department with an assessment tool of whether the departments comply with communication protocols outlined in the Government Communication Policy.
The unit also can conduct research for other departments (national, provincial and local government) and does so using a panel of independent service providers.

The tracker will be conducted during two quarters in the coming period, and ad-hoc research projects for government institutions will be strengthened.

The Communication Resource Centre (CRC) will continue to fulfil this role through its media monitoring service.
The CRC will furthermore continue with the early morning SMS media headlines to ensure principals and communicators are abreast of developments in the media environment and can respond where required or communicate proactively.

In addition, the CRC will continue to produce key messages and talking points to ensure coherence and consistency in government communication.

Related to this is drafting opinion pieces to ensure the government’s message is carried out clearly in the media.
A challenge has been posed to the digital media unit to strive to increase the penetration of all the GCIS social media accounts and websites (www.gcis.co.za and www.gov.za).

The team is also instrumental in ensuring that government programmes are streamed live, giving citizens a broader choice in accessing government content.
However, the digital divide in our country cannot be ignored; with over 27 million South Africans falling in the Rooted Realists segment, this population group still live in deep rural areas where the broadband network is still a challenge and access to data is still unaffordable.

Due to this stark reality, the flagship publication of the government, Vuk’uzenzele, will remain with a high print order to ensure that information still reaches the Rooted Realists segment.
15 82 The ultimate aim is to grow the digital downloads of Vuk’uzenzele, which is more cost- effective and can reach the citizens more frequently.

More digital forms of distribution are being explored.

Similarly to the PSM and SANews, the impact will be derived from the number of downloads on the bulletins developed.
Over the next four years, the Chief Directorate: Media Policy will be required to render secretariat support services to the Marketing Advertising and Communications (MAC) Broad-Based Black Economic Empowerment (B-BBEE) as part of giving effect to socio- economic transformation in the sector through the provision of the Annual Monitoring Report or Annual Transformation Report which is tabled before the Minister in the Presidency, the DTIC, B-BBEE Commission and the Presidency Advisory Commission on BEE.
Some of the proposed support include the employment of a Secretariat at the Deputy Director Level, which functions like a Company Secretary, thereby affecting the work of the MAC Council.

Further, GCIS will conclude and monitor the implementation of the Print and Digital Media Transformation and Diversity Charter.

5.3.
5.3.

Programme 3: Intergovernmental Coordination and Stakeholder Management: (R123,7 million) The programme has been allocated R123.7 million for the financial year 2023/24, reduced from R130,6 million from the previous financial year.

This is a decrease of about 5,6 per cent of the prior year’s allocation.

16 83 Programme 3, responsible for Intergovernmental Coordination and Stakeholder Management, will coordinate and lead the national, provincial and local government communication system.
This will be achieved through planned engagements with Heads of Communication and forums such as the Government Communication Forum (GCF) and Internal Communicators’ Forum meetings.

The Branch will avail training opportunities for government communicators in conjunction with the National School of Government.

This will be supplemented by capacity-building initiatives – facilitated by the Branch.
Reports on the functioning of the government communication system will be compiled to assess the state, coherence and effectiveness.

The Branch will also facilitate the planning and implementation of three priority campaigns on the Economic Reconstruction and Recovery Plan, Anti-Corruption, and Gender-based Violence and Femicide – using the project management approach.

The campaigns are aligned with the Medium-term Strategic Framework and the National Communication Strategic Framework.
The campaigns will be coordinated under the established Communication Action Team (CAT).

These campaigns will be implemented through several Development Communication projects (milestones, activities and events) at the provincial level and multimedia activities at the National level.

Additional communication work will be around implementing the National Communication Strategic Framework.
Community and stakeholder liaison visits form part of the work of the Provincial Offices of the Branch, which primarily seek to mobilise and reinforce a wide range of stakeholders to widen the reach of government communication.

These will be coordinated to leverage communication opportunities from these engagements and continue building the Branch’s stakeholder database.
The Branch also disseminates information products and key messages to stakeholders and the community, using a network of distribution points.

Part of the stakeholder engagements will include setting up meetings between government officials on the government’s programme of action, as identified through the Medium-term 17 84 Strategic Framework.

This initiative will enhance the relationship with the media and ensure that the government's content and messaging reaches the public through the media.
The Branch will also support media briefings coordinated by the respective lead departments on key government programmes.

These will include support to the Post Cabinet media briefings – which communicate the executive's decisions to the public.

For the remainder of the 6th administration, the GCIS will strongly advocate and implement an Izimbizo Programme for members of the Executive as part of implementing the National Communication Strategy Framework (NCSF) approved by the Cabinet in October 2022.
Izimbizo is an interactive, direct and unmediated communication platform that brings the government closer to the people and promotes participatory democracy.

The proposed Izimbizo Programme is part of a suite of communication tools for principals to articulate messages around the priorities of the government, as outlined in the 2023 State of the Nation Address (SoNA), as well as explain government interventions around energy challenges and other socio-economic issues the country is dealing with.
The Cabinet- approved NCSF theme will guide the proposed Izimbizo Programme: “Leave No One Behind”.

This is a rallying theme promoting partnerships and building national consensus in transforming the country to improve the lives of all South Africans.

The GCIS will coordinate the programme with Heads of Communication (HoCs) in national departments, provinces and municipalities.
The operational budget allocation in the Programme: Intergovernmental Coordination and Stakeholder Management is directed to the interface of national government communication with provincial communication programmes as well as an effective liaison between Ministers towards coherent communication strategies for the national government as well as promoting and facilitating the media’s understanding of government’s agenda.

The gradual increase over the medium term is mainly due to inflation adjustment.

6.
6.

Entities of the Department The Department has two entities reporting to it: Brand South Africa (BSA) and Media Development and Diversity Agency (MDDA).

However, the Committee has an oversight 18 85 function only over the MDDA and the Department of Planning, Monitoring and Evaluation (DPME) oversee the work of BSA.

Therefore, the Committee will only report on the work of the Agency.

6.1.

MDDA: (R 37 million) 6.1.1.


The Mandate The Agency was set up in terms of the MDDA Act (2002) to enable historically disadvantaged communities and individuals to gain access to the media.
Its mandate is to: a. create an enabling environment for media development and diversity that reflects the needs and aspirations of all South Africans; b. redress exclusion and marginalisation of disadvantaged communities and persons from access to the media and the media industry; c. promote media development and diversity by providing support primarily to Community and Small Commercial Media (CSCM) projects; d. encourage ownership and control of and access to media by historically disadvantaged communities as well as by historically diminished indigenous language and cultural groups; e. encourage the development of human resources and training and capacity building, within the media industry, especially among historically disadvantaged groups; promote the channelling of resources to the community media and small commercial media sectors; and f. raise public awareness regarding media development and diversity issues.
The Agency’s core activity is to provide financial and non‐financial support to community broadcast projects and community and small commercial media print and digital projects.

Its emphasis is on promoting indigenous languages, contributing to community development, and alleviating poverty and inequality.

Over the medium term, it plans to intensify its focus on communities – such as people with disabilities –underserved by mainstream media and on issues associated with gender and young people.
19 86 6.2.

Updated Situational Analysis In 2021 the MDDA commissioned research into Community Media Sustainability.

The main objective of the sustainability research was to develop a South African Sustainability Model for the CSCM sector, which categorises the sector according to its ability to self-sustain, partially sustain, and the inability to self-sustain to allow for focused, responsive, and proactive support.

Key findings include: • Lack of digital expertise within media organisations.
• The costs of signal distribution and other software required for distribution in the broadcast space were also found to be an area of concern.

• Challenges with sourcing local community content and appearing unable to create relevant content due to a lack of research skills required to source information.

• Lack of reliable audience measurement.


High audience numbers are an important factor for attracting advertisers, as advertisers will look to ensure that their products are advertised to a broad audience of potential customers.

• Communities and local media must be included in the Country Investment Strategy (“CIS”) - Gazetted on the 27th of May 2022.
A year into the post-pandemic era, community media remains a crucial platform to disseminate information to communities and a means to realise Section 16 (1)(b) of the Constitution on the Freedom of Expression.

In this updated situational analysis, the external environment remains volatile and uncertain due mainly to the aftermath of the pandemic and now exacerbated by the Russia/Ukraine situation.
The cost of living has risen as basic items like oil have become luxury and topical in the media, highlighting the plight of the poverty-stricken and unemployed.

Power uncertainty is another major issue impacting the viability of community media supported by MDDA, as well as funders whose business costs have increased due to load shedding.
The internal environment demonstrates resilience through consistently high performance amid challenges in the operating environment due to ongoing labour-related matters and a 20 87 paucity of trust resulting in news leaks to the media on internal issues.

The management and board planning sessions have committed to prioritising the well-being of the personnel and strengthening the governance so that goodwill can be rebuilt with internal and external stakeholders.

6.2.1.

External environment 6.2.1.1.


Social factors The South African population is currently estimated at 60.6 million, with a life expectancy of 62.8 years and an improvement from 61.7 years in 2021.

The Gauteng province is the most populated, with 26.6 per cent of the population, and the Northern Cape is the least populated, at 2 per cent.

The Limpopo province has the highest percentage of young people under 15, at 33.6 per cent.
The availability of skilled, economically active persons in some rural areas can impact the geographic spread of support to establish and manage media platforms.

Black youth, therefore, constitute a significant proportion of the unemployment rate.

Supporting youth-owned and managed community media projects is a focus area of the MDDA in delivering its mandate.
In contrast, further focus areas must be job creation and upskilling as positive spin-offs of the financial and non-financial support the MDDA provides to its beneficiary projects.

Gender inequity remains a reality in the workplace and the community media sector.
A Glass Ceilings study in 2018, jointly conducted by Gender Links and the South African National Editors’ Forum (SANEF) and supported by the MDDA, highlights that the media industry is changing with more women in senior roles, and inequality and inequity persist.

While South Africa does boast notable media exceptions, women are still under- represented in the media in terms of ownership, management and operations.
Gender-based violence (GBV) is another severe pandemic gripping the country, as highlighted by the President of South Africa on 18 June 2020.

21 88 Since the outbreak of COVID-19, the United Nations Women has indicated that 243 million women and girls between the ages of 15-49 have been victims of sexual/physical violence perpetrated by their intimate partners in the last 12 months.

This means that 18 per cent of women globally have been victims of GBV.
Another shocking statistic is that in 2017, the World Health Organisation (WHO) found that their husbands murdered 38 per cent of women killed globally.

It remains clear that GBV is a global violation of human rights and dramatically impacts the victims and their families.
Through training, the MDDA must encourage and facilitate the imperative for community and small commercial media to improve their coverage of gender and GBV by ensuring that innovative ways are utilised to unpack complex concepts and ethically cover sensitive issues.

6.2.1.2.

Technological factors Digitisation and digitalisation of media continue to be major technological disruptors to the extent that, more often than before, the relevance of current legislation is placed under the microscope.
Community media is now faced with the cost of the Digital Migration on their running costs which will significantly increase based on the SENTECH tariffs.

MDDA’s funding will not be sufficient to subsidise the stations, and a more sustainable solution is required to prevent the silencing of community broadcasting.

6.2.1.3.

Economic factors Post-pandemic recovery for South Africa compared to 51 other countries has been sluggish, according to Statistic South Africa Quarter 2 report of 2022.
However, in Q1 2022, the economy had returned to pre-pandemic levels.

For the media industry, especially print, this brings little consolation as the lockdown period, having impacted the delivery of newspapers, has seen more consumers shift to online publications and advertising revenues decline.

The financial relief provided to community media by the government through MDDA is recognised in the SANEF report as having been critical to keeping the doors of these operators open.
The struggling economy will impact advertising spend, which is a 22 89 major source of revenue for media, especially print.

For community media trying to attract advertising revenue, the challenge is increased.

6.2.1.4.

Environmental factors The NDP 2030 commits South Africa to reduce its dependency on carbon, natural resources and energy while balancing this transition with its objectives of increasing employment and reducing inequality and poverty through adaptation and mitigation.
Adaptation includes significant investments in new and adaptive technologies and rehabilitating and restoring natural ecosystems to improve resilience and mitigate climate change.

The MDDA has a significant role in promoting and supporting these global and national initiatives in its messages and technologies and those of its beneficiaries, fostering recyclable and environmentally friendly technologies and discouraging unfriendly environmental practices.
Mainstream media has been vital in highlighting issues of climate change.

As the focus moves from policy discussion to action on the ground at the community level is where the story is, community media have a significant role to play in educating and informing communities.

Focus on the key developmental issues can assist community media in plugging into the communication needs of development institutions and establishing mutually beneficial partnerships.

6.2.1.5.
6.2.1.5.

Political factors According to the Former Minister in the Presidency, Mr Gungubele, the MDDA plays a crucial role in educating and enhancing communication in the country.

This communication ensures citizens have information about their country’s plan and can therefore plan for themselves and determine whether the environment is conducive to their development and growth - clarity brings prosperity.
The National Development Plan and the MTSF priorities remain the policy documents that provide the political context within which the organisation's mandate is executed.

23 90 6.2.1.6.

Legal factors At the national level, freedom of expression and the media is affected by laws at several different levels.

The South African Constitution represents some of the most progressive modern constitutional thinking on media freedom.
However, other statutory instruments are required for a genuinely enabling environment where community-based media can flourish.

The MDDA, therefore, has a vital role in ensuring that such statutory instruments are passed, for example regulating the 30 per cent advertising spend by the government on community-based media and providing input into regulations for digital radio and online media in general.
Regulations on procurement in the public service were cast under the spotlight early in 2022 from the Constitutional Court ruling.

The court found the Preferential Procurement Policy Framework Act (PPPFA) regulations unconstitutional and needing revision.

This matter brought the issue of economic transformation and implementation of the Broad- Based Black Economic Empowerment (BBBEE) Act to the fore, with the role of government and its entities being examined.
Entities such as the MDDA will be needed to report more comprehensively on transformation both in the execution of their mandate and in their operations.

6.2.1.7.
6.2.1.7.

Ethical considerations The preamble to the South African Press Code states: “As journalists, we commit ourselves to the highest standards to maintain credibility and keep the trust of the public.” The MDDA expects its beneficiary projects to adhere to the Press Code and includes it as a focus area in its capacity-building and training initiatives.

While media literacy has been a focus area of the MDDA in the past, digital media literacy is a growing concern.
The advent of social media has also brought about a new threat, namely that of cyberbullying and acutely felt by women or cyber misogyny.

The MDDA 24 91 and the community-based media sector must play a more significant role in educating and sharing knowledge with communities on social media ethics.

Trust is a critical component in building beneficial, sustainable relationships.
This extends to community media, the MDDA, and all media partners contributing to the vision of a developed and diversified media.

The institution has been plagued by adverse reporting that impacts its reputation and position of trust with its stakeholders.

With the support of the shareholder and the Board, the organisation is embarking on a business remodelling intervention to recover from the tarnishing of its reputation.

6.2.2.
6.2.2.

Budget Information The table above depicts the Agency’s projected budget over the MTEF period.

Over the medium term, the agency will continue to provide financial and non‐financial support to community and small commercial media, emphasising promoting indigenous languages and contributing to community development.

The agency also plans to intensify its focus on ensuring the sustainability of media projects in communities underserved by mainstream media.
The agency is set to derive 37 per cent (R110 million) of its projected revenue over the medium term through transfers from the fiscus and 57 per cent (R171 million) from the mainstream broadcast sector as funds deductible from the Universal Service and Access Fund.

The 6 per cent (R12 million) will be derived from interest income from the investment through the Reserve Bank.
25 92 The agency will expand its funds mainly in grant expenditure and employee costs, with 48 per cent of the budget will be for grant expenditure (R143 million) and 41 per cent (R123 million) on employee costs over the medium term.

The remainder of the budget (R34 million) will be for administration and board costs and capital expenditure (R870 thousand).

7.

Observations 7.1.


The Department In relation to the Department, the Committee noted: (i) (ii) that it commended the performance of the Department; that it required clarity regarding the place of distribution and access to the Vukunzele newspaper, which was indicated to be distributed to 10.2 million citizens.
The Department responded that it would re-evaluate its distribution model and that copies of Vukunzele were distributed mainly in rural areas where it was delivered to households and the rest went to Thusong Centres; (iii) that there is a more significant allocation to the other entities within the department, and this resulted in MDDA being allocated a small portion of (iv) (v) (vi) the allocation budget; that there will be two additional board vacancies in September 2023; that it commended the Department for maintaining salaries within its threshold; that it required clarity as to the role of GCIS during the election process and how it would factor in the increased distribution of awareness to civil society; and (vii) that the budget of the Department is low and that funding to community media needs to be improved.
26 93 7.2.
MDDA In relation to MDDA, the Committee noted: (i) a great concern that on its recent oversight visit, it was not able to meet with MDDA employees and that some members of the Committee were informed that employees had been requested not to meet with the Committee; (ii) concern that the community radio stations are struggling to pay the stipend for the staff and presenters due to a lack of sustainable cash flow; (iii) concern that the community radio station does not have the mechanisms to measure its audience and coverage for marketing and advertisement, which will ensure a healthy cash flow; (iv) (v) (vi) (vii) concern that the presented budget is not enough to meet its mandate, one of which is sustainable media diversity and building of community media; concern that 40 per cent of the payment of grants goes to intermediaries to the detriment of the community radio stations; that it wanted to know how digital migration was affecting radio stations; concern that Sentech has switched off several community radio stations due to non-payment; and (viii) that there was a need to fill all vacancies for stability.
8.

Recommendations 8.1.
The Department In relation to the Department, the Committee resolved that the Minister should: (i) ensure that the issue of the funding at GCIS is being addressed; (ii) (iii) (iv) (v) ensure that processes are in place to factor in the increased awareness of the electorates during the election process; ensure that all the vacancies, including the entity board positions, are filled to ensure stability; ensure that the Department consider collaboration with other state authorities to fund community radio stations adequately; ensure that GCIS relooks and engages Treasury with other relevant 27 94 departments/entities to share costs where there are common interests; and (vi) ensure that GCIS partners with the Department of Basic Education and other related stakeholders, such as the Independent Electoral Commission (IEC) of South Africa, to conduct voter education leading up to the 2024 National and Provincial elections.
8.2.
MDDA In relation to the MDDA, the Committee resolved that the Minister should: (i) (ii) ensure that all vacancies are filled at the MDDA; ensure that the issue of employees not being able to meet with the Committee during its oversight visit is investigated and that MDDA reports back to the Committee; (iii) ensure that community radio stations are supported to ensure enough revenue generation for adequate remuneration for their staff to improve morale; (iv) ensure that the matter around the use of intermediaries for the payments of grants to the community radio is investigated and measures are put in place (v) (vi) to protect the radio stations; ensure further discussion on MDDA and Sentech switching off community radio stations; and ensure that there is enough support to hear community voices through community radio stations, especially in the upcoming elections.
The Committee recommends that Budget Vote 4: Government Communication and Information System be approved.

Report to be considered.

28 95 4.

REPORT OF THE STANDING COMMITTEE ON APPROPRIATIONS ON ITS INTERNATONAL STUDY TOUR TO THE REPUBLIC OF KOREA, DATED 17 FEBRUARY 2023 The Standing Committee on Appropriations, having undertaken an international study tour to the Republic of Korea from 5 to 9 December 2022, reports as follows: 1.
Introduction Effective budgetary oversight by the legislature is crucial for sound democracy and governance.

It promotes and improves allocative and operational efficiency, as well as service delivery.

Poor budgetary oversight results in misappropriation and mismanagement of public resources which often has deleterious effects on citizens’ lives, especially the vulnerable and less affluent.
One of the primary roles of legislatures is to scrutinise, approve and ensure effective implementation of government budgets.

However, budgetary oversight is a complex and complicated exercise, hence, legislatures require a sophisticated set of tools and techniques.

International visits/study tours offer an excellent opportunity to learn and acquire new tools and techniques.
The aforementioned is more important for less experienced and under capacitated legislatures like the Parliament of the Republic of South Africa (RSA).

The Republic of Korea’s economic success is attributable to its rapid economic growth and development of the 1960s.

The republic transformed from being a developing country to become a newly industrialised economy.
This was mainly due to strong development of export-oriented industries, abundance of highly skilled and educated labour, strong government support.

This rapid change of economic fortunes came to be known as the ‘Asian Miracle’.

In light of this, the Standing Committee on Appropriations, henceforth referred to as the Committee, undertook an international study tour to the Republic of Korea from 5 to 9 December 2022.
In the course of the study tour, the Committee had engagements with the following key identified stakeholders in the Republic of Korea: 1 96 • Strategy and Finance Committee; • Special Committee on Budget and Accounts; • National Assembly Budget Office; • National Assembly Research Service; and • Board on Audit and Inspection of Korea.

The Committee also met with the Ambassador of the Republic of South Africa in Seoul, Republic of Korea, her Excellency Ambassador Z Dlamini on 5 December 2022.
Furthermore, the Committee had an opportunity to visit the Samsung Innovation Centre on 6 December 2022.

2.

Delegation The oversight delegation comprised of the following Members of Parliament, Mr NS Buthelezi (Chairperson)(ANC), Ms MC Dikgale (ANC), Mr XS Qayiso (ANC), Ms ED Peters (ANC), Mr OM Mathafa (ANC), Mr Z Mlenzana (ANC), Mr AN Sarupen, Mr EJ Marais (DA), Ms EN Ntlangwini (EFF), Mr AM Shaik Emam (NFP), and Mr NLS Kwankwa (UDM).
The following support staff members accompanied the delegation on the study tour, Mr D Arends (Committee Secretary), Mr M Zamisa (Researcher), and Dr D Jantjies (PBO Director).
Department of International Relations and Cooperation: Ambassador Z Dlamini, Ms N Msibi (First Secretary: Seoul Mission Office), Ms S Sardha (Counsellor: Economic), Mr X Ngubani (Corporate Services Manager), and Mr Kwang-su Jin (Marketing Officer: Economic Section) Strategy and Finance Committee: Mr Dae Chul Park (Chairperson), and Mr Kyoungho Kim (Committee Member) Special Committee on Budget and Accounts: Mr Wonsik Woo (Chairperson), Mr Byoung Dug (Committee Member), and Gim Jun Hun (Legislative Research Officer) 2 97 National Assembly Budget Office: Mr Euysup Cho (Chairperson), Mr Sangjun Lee (Head of Planning and Budget Division), and Mr Myung Hyun Im (Assistant Chief of Planning and Management) National Assembly Research Service: Mr Jong Ok Kim (Director: Economy and Industry Research Office), Mr Dae Hun Kang (Director: Society and Culture Research Office), Mr Won Koh (Counsel for Politics and Administrative Research Office), Ms Yoo Hyang Kim (Counsel for Society and Culture Research Office), and Mr Jung Chul Go (Deputy Director: Planning and Cooperation Division) Board of Audit and Inspection of Korea: Mr Jaehae Choe (Chairperson), Mr Hee-Sang Yu (Commissioner), Ms Ji Hyeon Lee (International Affairs Coordinator), Ms Jinhwa Jung (Auditor), Mr Min Koo (Director), and Mr Sang Jun Lee (Auditor) Interpreter: Hyo Jung, Kim –interpreter & Translator Korea/English (Graduate School of Interpretation and Translation, Soul University of Foreign Studies) Samsung Innovation Centre: Mr Kwang-ju Sin (Marketing Officer) 3.
Objectives of the Study Tour The overall objective of the study tour was to gain an of the study tour an in depth knowledge and practical experience on how the Parliament of the Republic of Korea exercised its budget oversight function over the executive.
In addition, the specific objectives included interaction with various stakeholder to ascertain; • The main challenges experienced by Special Committee on Budget and Accounts and other Standing Committees involved in the budget process (in both approval and in-year monitoring stage); • The frequency of budget amendments and related processes, procedures and challenges; • The degree of cooperation between the National Assembly of the Republic of Korea (NA of ROK) and the Executive, especially in responding to committee recommendations and house resolutions; 3 98 • The practice and experience surrounding physical inspection of projects (i.e.
oversight visits); • The processes and procedures surrounding mid-year budget adjustments (i.e.

virements, shifts, rollovers etc.


); • The regulation of public involvement and participation in the budget process; • The relationship between the Strategy and Finance Committee; the Standing- Special Committee on Budget and Accounts; National Assembly Research Service; National Assembly Budget Office; • To assess the capacity and to gain insights into best-practices of National Assembly Budget Office to support the Budget/Finance Committees in executing their mandates.
• To assess the capacity and to gain insights into best-practices of the Board of Audit and Inspection of Korea.

4.

Overview of the state of the economy in the Republic of Korea at the time of the Study Tour The Republic of Korea’s economy was among the most competitive in the world.

Despite the global effects brought about by the Covid-19 pandemic, the country’s economy grew by 2.6 percent.
It was also among the ten largest economies in the world, which was impressive given that, unlike South Africa and other countries, the Republic of Korea is not endowed with natural resources.

In 2020 the Republic of Korea’s unemployment rate was 4 per cent, which was significantly lower than the 7.3 per cent average employment rate among Asian countries during the same period.

By December 2022, unemployment rate was 3 percent, down 0.5 percent from the previous year.
The country had thriving industrialization and impressive global trade competitiveness.

It boasted a number of export oriented and highly renowned companies with impressive global competitiveness record.

These included critical sectors such as automobile, electronics, telecommunications, shipbuilding, chemical and steel.
The country was among the largest manufacturers of electronic goods as well as semi-conductors, with globally popular brands such as Samsung Electronics Co. Ltd. and Hynix Semiconductor (SK Hynix Inc.).

Some of the well-known Korean brands include Hyundai, Samsung, Kia and LG, all of which are very 4 99 prominent in South Africa.

Large firms such as the aforementioned are essential to research and development, export orientation and fixed capital investment.
Smaller firms are essential to employment and job creation.

With regard to fiscal sustainability, the debt-to-GDP ratio was estimated at approximately 50 percent in 2022, and was projected to be below 50 per cent in the following financial year.

Despite the acceleration of debt-to-GDP ratio caused by effects of Covid-19, through the National Fiscal Management Plan (2002-2026), the Republic of Korea expected a stabilization of key fiscal balance indicators.
For instance, the country projected an average revenue growth of 6.6 percent between 2022 and 2026.

Over the same period, the country expected an average expenditure growth of 4.6 percent.

By 2026 the debt-GDP ratio would be reduced by 2.2 percent.

5.
5.

Parliament and the budget process of the Republic of Korea The Republic of Korea is part of the so-called ‘Asian Tigers’ and has achieved impressive economic and developmental successes and moved from underdevelopment to become part of the industrialised nations.

The NA of ROK is a unicameral house located in the capital city of Seoul and has 300 members (253 electoral distinct, and 47 proportional representative) who serve a term of four years.
The NA of ROK consists of 17 standing committees, which are equivalent to Portfolio and Select Committees in South Africa.
These are as follows: • House Steering Committee; • Legislation and Judiciary Committee; • National Policy Committee; • Strategy and Finance Committee; • Education Committee; • Science, ICT, Broadcasting and Communications Committee; • Foreign Affairs and Unification Committee; • National Defence Committee; • Public Administration and Security Committee; • Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee; • Trade, Industry, Energy, SMEs, and Start-ups Committee; • Health and Welfare Committee; 5 100 • Environment and Labour Committee; • Land, Infrastructure and Transport Committee; • Intelligence Committee; and • Gender Equality and Family Committee.
The above committees examine bills and petitions falling under their respective jurisdictions, and perform other duties as prescribed by relevant laws.

Additionally, the NA has the Standing -Special Committee on Budget and Accounts.

The NA could, when required, form a non-standing special committee.
Non-standing special committees in the Republic of Korea are equivalent to ad hoc committees in the Parliament of RSA and are established to investigate special bills or matters that cut across multiple Standing Committees.

These committees operate on a temporary basis with the only exception being the Standing-Special Committee on Budget and Accounts.
Each Standing Committee (except the Intelligence Committee) may appoint three standing sub-committees to assume partial responsibility for examining specific matters under its jurisdiction.

The Standing-Special Committee on Budget and Accounts is responsible for budget approval and scrutiny and equivalent to the Standing and Select Committees on Appropriation in the context of the Parliament of RSA.

The Standing-Special Committee on Budget and Accounts consists of 50 members and has 1 sub-committee.
4.1 The budget system of Republic of Korea The Republic of Korea has a very interactive and well-coordinated budget system/process.

The financial year is the same with the calendar year as it starts on 1 January and ends on 31 December.

As it is the case in legislatures globally, the executive prepares the budget.

The National Assembly approves the budget and oversee its implementation.

The Department of Economy and Finance (DoEF), in consultation with line departments, drafts the budget.
The draft budget gets endorsement from Cabinet and the President 6 101 before it is tabled in the NA on 2 October.

The draft budget is based on a 5-year plan called the National Fiscal Management Plan (NFMP), a process which started in 2004.

This NFMP is a multi-year system and seeks to promote transparency, predictability and long-term planning.

The NA of ROK approves the budget and oversee its implementation.
The process starts on 2 October when the NA receives a draft budget from the President along with a draft National Fiscal Management Plan (NFMP).

A draft of the National Fiscal Management Plan includes basic goals and directions of fiscal management, medium to long-term fiscal outlook, resource allocation plan by sectors and level of tax burden are all included.

Initially the budget will be tabled 90 days before the start of the financial year.
The government has amended its National Finance Act to increase the days the NA has with the budget.

For instance, the number of days has increased as follows; 100 days in 2014; 110 days in 2015; and 120 in 2016.

The budget process goes through the following 3- staged process: • Preliminary review by the Standing Committees; • Comprehensive review by the Special Committee on Budget and Accounts; and • Plenary session vote.

The Speaker refers the budget to each of the 17 standing committees.
The standing committees scrutinise the budget through their subcommittees.

Once done with scrutiny, each standing committee compiles a report with recommendations and proposed changes, which it sends to the Standing-Special Committee on Budget and Accounts.
This process is similar to the Budget Reviews and Recommendations Reports which are produced by all Portfolio Committees of Parliament of the Republic of South Africa with all the recommendations that must be taken into consideration when processing the budget bills.

On receipt of recommendations from Standing Committees, the Standing-Special Committee on Budget and Accounts conducts a holistic and thorough scrutiny of the budget.
This process is similar to what the Standing Committee on Appropriations for the Parliament of the Republic of South Africa is established to do in terms of the Money Bills Act.

It also does this through sub-committees, especially the sub-committee on reconciliation.

The Standing-Special Committee on Budget and Accounts then tabled a 7 102 report on a Budget Bill to the plenary.

In line with the requirements of the Constitution, the NA votes on the budget by December 2 of each financial year.
The NA of the Republic of Korea was in the process of considering the proposed budget for the 2023 financial year at the time of the study tour.
The Standing Committee on Strategy and Finance, during its deliberations with the Committee, summarised the proposed budget for the 2023 financial year as follows: • The budget bill under consideration amounted to 638.7 trillion won, which is approximately US$498.89 billion; • The Health and Welfare Ministry receives approximately US$108 billion, which is the largest allocation; • The Education Ministry receives the second largest allocation, which amounts to approximately US$101 billion; • The Interior and Safety Ministry receives the third largest allocation approximately US$81 billion; • The Transport and Land Ministry receives the fourth largest allocation amounting to approximately 56 billion US dollars; • The National Defence Ministry receives the fifth largest allocation amounting to approximately 41 billion US dollars.
• Overall, the budget is set to cut the fiscal deficit to 0.6 per cent of gross domestic product (GDP) from 3.3 per cent in the 2022 financial year.

The table below provides an overview of the key legislative prescripts that underpin the budget process in the Republic of Korea.

Legislative framework Description The Constitution - Gives the government the power to draft the national budget.

- Gives the National Assembly the powers to deliberate and approve the national budget.
- Chapter 57 restricts the National Assembly from increasing the budget or from creating a new budget item without the agreement of the government.

8 103 National Finance Act - Sets the guidelines for the budget, funds, closing accounts, performance management and government debt.

- Promotes efficient, performance-oriented and transparent management of the public finance.

Local Finance Act - This is similar to the National Finance Act, except that it is focused on local finances.
- Promotes the autonomy, transparency and soundness in local finances National Assembly Act - Regulates the overall legislative stage of the budget process and powers of the NA, its committees and other role players (i.e.

the National Assembly Budget Office).
The mandate, roles and functions of the Standing Committee on Strategy and Finance can be summarised as follows: • Legislates the Budget Bill; • Legislates other budget laws as well as other fiscal and economic policy laws; • Considers public petitions that are related to its jurisdiction; • Conducts parliamentary audits into government performance including any necessary parliamentary investigations; • Forms part of the consideration sessions for the nominations of each minister for each ministry, and also for the head of the Bank of Korea.
Among other things, the Committee considers the qualifications of the nominees; • It considers public petitions submitted by various functional groups in society; and • Conducts policy research.

4.2 Institutions that Support the NA of ROK The section below provides an overview of the institutions within the NA of ROK that support the Parliamentary Committees in budget scrutiny.
9 104 4.2.1 The National Assembly Budget Office The National Assembly Budget Office (NABO) was established to offer research, analysis and evaluation of services related to the national budget, the settlement of accounts, funds and fiscal management and support legislative activities.

Thus NABO plays a pivotal role in supporting budget scrutiny.

It was formed in October 2003 through Article 22-2 of the National Assembly Act, and subsequently the National Assembly Budget Office Act (2003).
The NABO supports the Standing-Special Committee on Budget Accounts and all the 17 Standing Committees, and it reports to the Speaker of the NA.

The Office currently has a total of 138 employees mainly with Masters or above degrees in economics, public policy, or a wide variety of other disciplines.
NABO provides the following support to the NA of ROK: • Research and analysis on budget bills, public fund management plans, and settlement of accounts; • Cost estimates of bills that affect the budget or funds; • Analysis and forecast reports on the operation of national finances and macroeconomic trends; • Analysis and evaluations of major government programmes and analysis of medium to long-term fiscal demands; and • Studies and analyses in response to requests by standing committees or members of the National Assembly.
NABO’s suggestions through its analytic reports were reflected in 169 budget bills and 480 settlement of accounts reports over the past four years.

The number of cost estimates and tax revenue projections produced increased from 4 372 in the 19th Parliament to 12 428 in the 20th Parliament.

Furthermore, it reported that its economic growth outlook projections were the most accurate from major economic forecasters in the Republic of Korea.
10 105 The Director of the PBO, Dr D Jantjies and the Chairperson of NABO, Mr Euysup Cho, held bilateral meetings.

The below sections summarises the outcomes of the said bilateral meetings.

(i) Cooperation between PBO and NABO Both leaders agreed that there are currently various issues where their Offices could share experiences and expertise.

These included amongst others, capacity building and training between the Offices staff and Members of Parliament.
To this end it was proposed that both Offices should consider attachment of certain team members between the offices, for instance, PBO and NABO staff members spending a month in each other’s offices (Cape Town and Seoul).

(ii) Costing and Economic Modelling Approaches It was agreed that in both countries, Members of Parliament are always keen to understand the impact assessment of the budget on the economy, society and the fiscus.
The PBO Director noted that his Office is currently reviewing its costing and economic modelling approaches to ensure that its capability is able to provide analysis that shows or forecast the likely impact of budget proposals on the economy, society and fiscus.

It was agreed that at different scale, both South Africa and the Republic of Korea are facing many challenges, including unemployment, inequality and other socioeconomic matters.
Therefore, the budget office’s analysis and research advise to Parliaments should continue to provide progress on how the budget has been able to improve or lack of improvement of the developmental and broadly economic indicators.

The NABO Chief noted that his Office conducts independent economic forecasts at the parliamentary level in order to effectively analyse budget plans and monitor fiscal soundness.
Furthermore, each year, NABO releases the economic and fiscal statistics which contain key statistics helpful to the National Assembly’s legislation, examination of budgeting and settlement of accounts.

Accurate statistics are essential to understanding the complex economic and social phenomenon and making rational policy decisions.
The 2020 economic and fiscal statistics will provide reliable fiscal and economic statistics for 11 106 the examination process of legislative bills, budgeting and settlement of accounts in a timely manner.

NABO further prepared the Korean Economy in Indicators report to provide data necessary for drafting policies in the economic, population, employment, and welfare sectors during the 21st National Assembly.
This was done through summarizing and presenting changes in major economic and social indicators under the 20th National Assembly.

NABO provides an independently prepared cost estimates report according to requests made by members of the National Assembly and committees.

Those who wish to request a cost estimate for the bills they have prepared may use the National Assembly Comprehensive Legislation Support System to request such analysis.
The PBO Director indicated that he shared a view by NABO that, government finance plays a strong role in underpinning the national economy.

Therefore, the role of the National Assembly was also becoming increasingly important in ascertaining the effectiveness of individual programs, strategic allocation of financial resources, and fiscal sustainability.

The PBO Director and the Chief of NABO agreed to establish space for both offices to grow each other capacity in areas of common interests.
(iii) African Network - PBO and NABO The PBO Director noted that his office together with other African PBOs have established an African Network of Parliamentary Budget Offices (AN-PBO) in 2016.

The South African PBO Director is currently the Chairman of the AN-PBO.

The objectives of the AN-PBO are similar to those of the Organisation for Economic Co-operation and Development (OECD) Network of International Finance Institution (IFI) and PBOs and World Bank Networks.
These are, amongst others, to bring together the offices to support and strengthen each other’s capacity in providing independent fiscal and economic advisers in support of legislative oversight.

Every year since its establishment, the network hosted annual meetings and seminars to support each other and discuss fiscal and policy issues affecting the respective countries and what should be the respective offices consideration.

There is also issue of capacity building for new and aspiring offices.
12 107 At the invitation of the Director, the NABO Chief has expressed interest for his Office to be part of the AN-PBO.

In particular, in making contributions towards the AN-PBO annual meetings hosted by different countries.

The leaders agreed that the AN-PBO Chairman will in 2023 extend formal invitation for the NABO Chief to attend and participate in the 2023 AN-PBO Annual Conferences expected to be held in East Africa in August 2023.
The NABO Chief noted that, like the PBO Director he has been appointed by the OECD Network of the PBOs and IFIs to establish the Asian Network of PBOs.

The Chief has expressed wishes for the PBO Director use his experiences in establishing the AN-PBO to support the establishment of the Asian Network on PBOs.

The leaders agreed to develop a strategy in supporting each other in their roles on leading their regional networks of PBOs.
4.2.2 National Assembly Research Service The National Assembly Research Service (NARS) is the oldest and very crucial institutional support in budget scrutiny.

It was formed in 2007 as an independent research agency to strengthen the NA’s legislative capabilities and policy development capacities.

It covers all subject areas of state affairs.

The NARS has a total of 163 staff members with 58 PHDs and 13 lawyers and public administrators who support all parts of government administration.
The mains tasks of the NARS can be divided as follows: (i) Legislative Research Services - Provide legislative research at the request of Members or Committees of the NA; - Conduct services in the form of reports through IT; and - Compliance with the confidentiality principle (protection of Member/Committee ideas.
(ii) Research Publications - Publication and distribution of reports on major issues and disclosure on the NARS website; and - Various other reports such as four-page current issue reports and more than 50 page in-depth reports.

13 108 (iii) Support Legislative Activities - Seminars, presentations, participation in discussions, and face-to-face reports.

4.3 Board of Audit and Inspection of Korea The Board of Audit and Inspection (BAI) of Korea is the equivalent to the Auditor- General South Africa (AGSA).
BAI of Korea was established in 1963 through the merger of the Commission of Inspection and the Board of Audit.

Its legal status is derived from Article 97 of the Constitution as well as the Board of Audit and Inspection Act.
It is established under the jurisdiction of the President of the Republic of Korea and its responsibilities can be summarised as follows: (i) Examination of the final accounts (Article 21 if the BAI Act) BAI of Korea examines the final account of revenues and expenditures of the state every year to verify whether national financial resources have been utilised in accordance with their intended purpose.
The Minister of Economy and Finance submits a report of the final accounts of the state containing a record of annual budget usage to BAI who examines this to check whether the account total is equal to the actual amount spent.

Thereafter, the Minister of Economy and Finance submits the final report to the NA of ROK.
(ii) Audit of Accounts of the state, local government and public institutions (Articles 22 and 23 of the BAI Act) BAI audits the accounts of the state, local governments and public institutions to ensure that the national budget is used properly for the state and the people, and also to prevent wasteful government spending caused wilfully, by negligence of public officials or due to unnecessary government programmes.
The matters subject to BAI’s audit can be classified into (a) matters subject to mandatory audit to enhance accountability and to eliminate audit blind spots, and (b) discretionary audits that are conducted when deemed necessary by BAI or at the request of the Prime Minister of the Republic of Korea.
14 109 (iii) Inspection on operations of government agencies and duties of their employees (Article 24 of the BAI Act) BAI also inspects the work performed by government agencies and the duties of their employees to ensure quality government services are provided in accordance with the laws and principles.

The aim of inspections is to insect whether public officials are doing their work properly.

BAI issues disciplinary measures in instances where they find any wrongdoings.
According to Article 127-2 of the National Assembly Act, the NA of ROK may, by resolution, request the BAI of Korea to conduct and audit by specifying a case from among the matters belonging to its scope of duties.

Over the last five years a total of 42 requests for audits have been received from the NA of ROK (26 from Standing Committee and 16 from Committee on Budget and Accounts).
In addition to this, BAI of Korea also receives citizens’ requests for audit where 300 or more people aged 19 or older can request for audit of public institutions’ services in case the institutions are seen to be violating laws and/or committing corruption.
Furthermore, requests for audits in public interest are accepted where eligible entities (300 or more citizens aged 19 or older, civic groups, heads of auditee institutions, and local councils) may apply in the following cases: • where public institutions waste budgets in implementing major projects and policies; • irrational public administration and national systems need to be corrected and improved; and • where public institutions are deemed to be seriously harming public interest by violating the laws or partaking in unjust actions.
6.

Findings and Observations The Standing Committee on Appropriations, having undertaken an international study tour to the Republic of Korea, made the following observations and findings: 15 110 5.1 The Republic of Korea’s economy is among the ten largest in the world and this is notwithstanding the fact that it does not have a lot of natural resources, hence there is a strong emphasis on human capital in order to ensure economic prosperity.
The country has a less than two per cent unemployment rate which is highly commendable.

5.2 The Republic of Korea has an incredible education system in place, made possible by a high degree of investment by government in Research and Development.

From a proposed total budget of KRW639 trillion, education was the second largest expenditure item behind Health and Welfare in the national budget of the Republic of Korea for the 2023 financial year.
T wo-thirds of the adult population have college degrees resulting in its government promulgating a law that allows an influx of low-level labour.

The Committee asserts that South Africans can learn a lot from the experiences relating to education and Research and Development of the Republic of Korea, however, blockages to achieving this needs to be addressed by the Department of International Relations and Cooperation.
5.3 The Republic of Korea subsidises the unemployed through grants-in-cash as well as training programmes that will assist them in seeking work opportunities.

5.4 The Republic of Korea provides free education to elementary and middle school students while college students’ tuition is subsidised.

Elementary and middle schools are governed by the local government authorities and colleges fall under the jurisdiction of the central government.
5.5 The Committee notes that in the Korean economy, large firms are essential to Research and Development, export orientation and fixed capital investment.

Smaller firms are essential for employment and job creation.

Therefore, a two-tract approach is required in South Africa with different incentives for both the large and smaller businesses.
5.6 The National Assembly and the government of ROK strongly focus on maintaining a low unemployment rate, and this is primarily achieved through budget policy and active job creation policies.

For instance, in 2020 the ROK’s unemployment rate 16 111 was 4 per cent, which was significantly lower than the 7.3 per cent average unemployment rate among Asian countries during the same period.

By December 2022, unemployment rate was 3 percent, down 0.5 percent from the previous year.
5.7 The budget process in the National Assembly of ROK is characterised by strong coordination between the two budgetary committees (i.e.

the Special Committee on Budget and Accounts, and the Standing Committee on Strategy and Finance) and the sectoral committees that are formally referred to as standing committees.

This level of coordination strengthens and deepens budget scrutiny and oversight.
5.8 The Standing Committee on Strategy and Finance, conducts preliminary reviews of the proposed budget bills through sub-committees which are then voted on and referred to the Special Committee on Budget and Accounts.

The Standing Committee on Strategy and Finance also, amongst others, conducts oversight over the Bank of Korea and considers the Settlement of Accounts as tabled by the Board of Audit and Inspection (BAI) of Korea.
5.9 The Special Committee on Budget and Accounts plays a central role in the budget bill process as it coordinates all the reports on the budget by all standing committees.

The Special Committee conducts a holistic and thorough scrutiny of the budget through sub-committees, especially the Sub-Committee on Reconciliation.

5.10 The Committee notes that the public in the Republic of Korea is allowed to make proposals on the budget bills before the NA of ROK through the regional tax offices.
5.11 As is the case in the Parliament of the Republic of South Africa, time constraints have been identified as one of the challenges faced by the National Assembly of ROK when processing the budget.

Furthermore, there are differences among political parties which also result in delays.

To this end the passing of the budget is often subject to extensive consensus building between the ruling party and opposition parties in the National Assembly.
This process could result to an extension of the normal budget approval process schedule.

17 112 5.12 The Committee notes the striking similarities between the NARS and the Research Unit of the Parliament of RSA.

The two institutions are similar in size, research method, and support to committees of Parliament.

5.13 The Committee notes that the BAI of Korea can receive requests for audits through three channels i.e.
National Assembly of ROK, citizens’ requests for audits, and requests for audits in the public interest.

5.14 The Special Committee on Budget and Accounts and the Standing Committee on Strategy and Finance regularly amends the budget proposed by the executive.
This is primarily due to substantial institutional support from the well-resourced and experienced National Assembly Budget Office (NABO), National Assembly Research Service (NARS), the Board of Audit and Inspection (BAI) of Korea, well- coordinated committee system, and a sustained consensus building process among political parties.
5.15 The important budgetary mandates and roles of the Special Committee on Budget and Accounts and the Standing Committee on Finance and Strategy are anchored on the support of a well-resourced NABO and the NARS, as well as the extensive number of public representatives (a total of 50) who serve in the Committee.

5.16 The Committee notes that the submission by the Standing Committee on Strategy and Finance that it focuses more on previous performance when considering budget bills.
The detailed spending analyses provided by NABO and the NARS are also used by the Committee when considering the budget proposals.

5.17 In-year monitoring of budget expenditure by the executive and state-owned entities is conducted by the standing committees in close collaboration with NABO and NARS.

5.18 The Committee notes that the NABO has been very successful in executing its duties.
NABO’s suggestions through its analytic reports were reflected in 169 budget bills and 480 settlement of accounts reports over the past four years.

The number of cost estimates and tax revenue projections produced increased from 4 18 113 372 in the 19th Parliament to 12 428 in the 20th Parliament.

Furthermore, it reported that its economic growth outlook projections were the most accurate from major economic forecasters in the Republic of Korea.
5.19 The reported successes of the NABO is made possible through sufficient resources being allocated to the institution, i.e.

138 employees mainly with Masters or above degrees in economics, public policy, or a wide variety of other disciplines 5.20 The National Assembly and the government of ROK is putting in place budgetary measures to revitalise the nuclear power plant industry.
Amongst the measures is the effort to increase the budget items that are essential to the functioning and growth of the power plant industry.

Furthermore, the government of ROK is in the process of restructuring state owned enterprises with a view of improving operational and financial performance.

5.21 In the Republic of Korea, meritocracy is the only basis on which they construct the state and relates state agencies in order to build a more prosperous society.
5.22 South Africa is the Republic of Korea’s largest trading partner on the African continent.

Notwithstanding this, the Committee notes the submission by the Embassy of the Republic of South Africa in Seoul, that there was no free trade agreement in place between the two countries.

This inhibits the export of goods and products between South Africa and the Republic of Korea.
5.23 The Committee notes with serious concern that the Embassy of RSA in Seoul pays a total of R546 951 per month for the lease of its administrative building.

The Committee reiterates its previous assertions that government should consider buying its properties.

5.24 The Committee notes that visa renewal delays experienced by Korean citizens in South Africa has been raised throughout the study tour by the NA of ROK.
The Committee requests that the Department of International Relations and Cooperation and the Department of Home Affairs attend to this matter expeditiously and within 19 114 the ambit of the agreement between the two countries.

This should result in increased cooperation between the two countries.
5.25 The Committee notes that the Republic of Korea has entered the race to host the 2030 World Expo which it would like to host in Busan and encourages the Republic of South Africa to consider supporting it in this endeavour.

6.
6.

Recommendations The Standing Committee on Appropriations, having undertaken an international study tour to the Republic of Korea, recommends as follows: 6.1 That the Presiding Officers of the Parliament of the Republic of South Africa ensure the following: 6.1.1 That mechanisms be introduced that would ensure sustained interactions and knowledge sharing between the legislatures including their committees, budget and research offices.
6.1.2 That mechanisms be introduced to formalise and improve coordination between the four budgetary committees (i.e.

the appropriations and finance committees in the National Assembly and National Council of Provinces) and the portfolio and select committees.

This should include ensuring that all Budget Reviews and Recommendations Reports are formally submitted to the appropriations and finance committees for consideration once finalised by portfolio committees.
Currently the processes are disjointed and uncoordinated.

6.1.3 That Parliament of the Republic of South Africa should consider incrementally increasing the Parliamentary Budget Office’s (PBO) budget.

This is to enable the PBO to invest in systems and personnel required to conduct independent and rigorous costing of government policy and programmes, as well as independent forecasting.

This will improve the Parliament of RSA’s ability to conduct deeper and more pro-active budgetary oversight.
6.1.4 That Parliament of the Republic of South Africa should observe the developments in respect of the on-going process of restructuring State-owned Entities in the Republic of Korea.

This should be done to identify success strategies that could 20 115 be replicated in the context, and these could be shared with the executive during oversight meetings.
6.1.5 That Parliament of the Republic of South Africa should, through oversight processes, implore the government to closely monitor, study and adopt successful trade, economic growth and employments policies used by the Republic of Korea.

6.1.6 That the Parliament of the Republic of South Africa should introduce legislative mechanisms that will allow the general public to also initiate Auditor-General South Africa (AGSA) audits in specific circumstances.
6.2 That the Minister of Finance should consider reviewing AGSA’s current funding model to ensure that it receives all or most of it’s funding from the fiscus, rather than being wholly funded through audit fees.

In this regard, the Minister could opt for one of the two options: • AGSA is completely funded from the fiscus, or • AGSA receives an allocation from the fiscus whilst collecting audit fees.
6.3 When considering the AGSA’s funding from the fiscus as per recommendation 6.2 above, the Minister of Finance should ensure that the budget is adequate to enable AGSA to broaden and deepen its scope for performance audit across the public sector.

Broader and deeper performance audits are essential for strengthened scrutiny of public spending and performance, however, it requires significant investment in personnel and systems.

7.
7.

Conclusion The responses and by the Presiding Officers and Executive Authority to the recommendations, as set out in section 6 above, must be sent to Parliament within 60 days of the adoption of this report by the National Assembly.

The Committee will arrange meetings with the Department of International Relations and Co-operation and Department of Home Affairs, along with other key stakeholders to discuss the bottlenecks experienced by the Embassy of RSA in the Republic of Korea.
21 116 The Committee would like to thank the authorities in the Parliament of Republic of the Republic of South Africa for affording it an opportunity to undertake an international study tour to Republic of Korea.

The Committee hereby also thanks Ambassador Zenani Dlamini and her staff Ms N Msibi, Mr X Ngubane, Ms S Shamra, and Mr K Jin and for facilitating the study tour and opening her office and residence to the Committee and for being graceful and diligent in fulfilling her duties.
The Committee also appreciates and is very grateful for the efforts made by the Deputy Minister of International Relations and Cooperation, Mr A Botes, his Excellency Mr Park, Ambassador to the Republic of Korea in South Africa, and First Secretary Mr Kim for ensuring the lines of communication are open with our counterparts in the Republic of Korea.
Finally, but definitely not least, thank you to the NA of ROK, Samsung Innovation Centre, and the Board of Audit and Inspection of Korea for being most gracious in receiving our delegation.

The Committee appreciates all you have done and hopes to one day also receive delegations from the Republic of Korea.

Report to be considered.

22 117 5.


Report of the Portfolio Committee on Human Settlements on Budget Vote 33: Human Settlements, the revised Strategic Plan for the coming Medium Term Expenditure Framework (MTEF) period and the Annual Performance Plan 2023-24, 9 May 2023.
The Portfolio Committee on Human Settlements (later referred to as the Committee), having considered Budget Vote 33: Human Settlements, the revised strategic plans for the MTEF period and the annual performance plans of the Department of Human Settlements (later referred to as the Department) and its entities, referred to it, reports as follows: 1.
Introduction The mandate of the Department emanates from Section 26 of the South African Constitution, which provides that everyone has the right to have access to adequate housing.

The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realization of this right and no one may be evicted from their home, or have their home demolished, without an order of the court.
Furthermore, the Constitution provide the legislative framework for the institutional arrangements used in the development of sustainable human settlements.

2.

Policy imperatives 2.1 National Development Plan Chapter 8 of the NDP focuses on transformation of human settlements and the national space economy.
Its human settlements trajectory anticipates that by 2050 South Africa’s human settlements would have transformed into equitable and efficient spaces with citizens living in close proximity to work, and having access to social facilities and essential infrastructure.

It also 1 118 envisages that by 2030, measurable progress towards breaking apartheid spatial patterns would have been made.
The Department is therefore responsible for addressing the issue of transformation in the housing sector, and to ensure that the fractured housing and land markets are addressed.
The national strategy for spatial transformation is, according to the NDP, guided by the need to: • Respond systemically over time to entrenched spatial patterns across all geographic scales that exacerbate social inequality and economic inefficiency; • Implement strategically chosen catalytic interventions to achieve spatial transformation in a manner that supports local driven spatial governance; • Achieve a creative balance between spatial equity, economic competitiveness and environmental sustainability; • Expand the personal freedoms by providing residents of South Africa with a greater choice of where to live; • Support individuals, communities and the private sector in engaging with the state on the future of spaces and settlements in which they live and work, while streamlining processes to enable local governments to implement strategic spatial interventions.
2.2 Medium Term Strategic Framework (MTSF) 2019-2024 The MTSF 2019 - 2024, as a medium term plan to systemically achieve the overarching vision of the NDP, identified three key, interrelated outcomes to achieve spatial transformation, namely: • National frameworks and guidance towards coordinated, integrated and cohesive national spatial development; • Regional-level interventions to unlock opportunities, ensure redress and respond to environmental, risks and vulnerabilities; • Interventions to ensure integrated service delivery and transformation in all places.
2 119 In terms of the importance of addressing housing needs, the MTSF notes that South Africa has the largest housing delivery programme in the world, with important and redistributive spin-offs.

One of the key concerns, however, is that the form and location of land developments, human settlement projects and informal settlement upgrades do not often respond directly to government’s commitments around spatial intent and transformation.
Despite significant efforts to address the issue of spatial inequality, human settlement patterns remain inequitable and dysfunctional across South Africa where the former homeland areas are typically densely settled and where insecure tenure remains a challenge.

Housing demand has increased, while household sizes have reduced and urbanisation has rapidly increased.
For this reason, the MTSF 2019-2024 is focused on three specific interrelated outcomes related to the human settlements sector specifically, namely: • Spatial transformation through multi-programme integration in priority development areas; • Adequate housing and improved quality living environments; and • Security of tenure.
2.3 State-of-the-nation address (SONA) 2023 During the 2023 SONA address, the President referenced human settlements sector in three aspects, namely: • Infrastructure projects: By January 2023, projects worth R232 billion were under construction and projects worth nearly R4 billion were completed.
The completed projects included new human settlements in Gauteng; • Title deeds: During 2023, steps would be taken to unlock massive value for poor households by expediting the provision of title deeds for subsidized houses.
This would 3 120 include processing the current backlog of title deeds, of over 1 million houses, with an estimated value of 242 billion in assets; • State-owned land for human settlements: The Department of Public Works and Infrastructure had finalized the transfer of 14 000 hectares of state land for housing.
2.4 Performance analysis The Capital Subsidy Model was in place for more than two decades and new priorities have emerged with the population growing exponentially coupled with changes in household formation.
The sector would continue to do more with less using its multi-pronged delivery model, that was: • Public sector-driven Breaking New Ground (BNG) for beneficiaries in the gap market that earn below R3500 and requires large resources; • Private sector driven First Home Finance (FHF) for beneficiaries in the gap market that earn between R3500 and R22 000 where the model includes debt, equity, and grants that were provided by the government, and; • The hybrid delivery model People’s Housing Process (PHP), which includes programmes that were driven by the private and public sector such as the people housing process, housing cooperatives and informal settlements upgrading.
The Department would continue, in the current year to focus on implementing the following MTSF priorities: • Designated groups; • Emergency housing; 4 121 • Eradication of mud housing; • Removal of asbestos in houses; • Blocked projects; • Eradication of title deeds backlog; • Provision of land/ serviced sites; • Upgrading of informal settlements; • Provision of affordable housing; • Provision of social and rental housing; • Provision of socio-economic amenities.
To enable the implementation of priorities, the Department approved and gazetted the norms and standards for the rental and would make conscious efforts to finalize the drafting of the macro policy foundation document, create post BNG norms and standards that would be aligned to the latest SANS, responsive to emerging country issues and consolidate these into the national housing and human settlements code.
The Department would continue to focus on rolling out of a housing subsidy programme that prioritizes the delivery of serviced stands, post BNG norms and standards that would include water-wise technology, improved engineering services and implement facilitative programmes that contribute to growing South Africa’s economy and create employment.
The Department plans to bring stability in the sector by setting up panels, securing additional capacity and finalize the organizational structure to support the implementation of the above priorities.

5 122 3.

Budget analysis The overall allocation increased by R1.46 billion, from R33.4 billion in 2022/23 to R34.9 billion in 2023/24, reflecting a real percent change of -0.5%.

Programme 2 dominates expenditure (i.e.

R23.5 billion), which equated to 67.4% of the total budget for the Department.
This was also the only of the five programmes which received an above–inflation increase.

Programme experienced a -6.0% real percentage change, the highest of all the programmes.

Below is an analysis of the budget allocation and Annual Performance Plan targets for each programme.

3.1 Programme 1: Administration The Corporate Services sub-programme received the largest allocation, to the value of R233,6.

million.

This represented a nominal increase of 1.43%, but in real terms a -3,3% change.
The Departmental Management sub-programme, experienced -15.3% real change from the previous year, while Financial Management changed with -7.2% in real terms.

When taking into the inflationary effect, all five of the sub-programmes experienced negative changes in real terms.

3.2 Programme 2: Integration Human Settlements Planning and Development The Grant Management sub-programme dominated expenditure under this programme, i.e.

98.1%.
98.1%.

Its R23.1 billion allocations for 2023/24 reflected an increase of 6.9% nominally (1.9% in real terms).

This is the sub-programme responsible for managing and transferring of conditional grants to provinces and municipalities for the implementation of housing and human settlements programmes.

The Sub-programme Public entity oversight received the second largest allocation at R268,6 million.

However, compared to previous years, this reflected a real change of -4.4%.
6 123 3.3 Programme 3: Informal Settlements The Grant Management sub-programme receives the largest allocation out of the three sub- programmes, with a total of R9.2 billion.

The previous year, its allocation was R9,27 billion.

This represents a real percentage change of -5.2%.

Capacity building and sector support sub- programme received the second largest allocation with R74,4 million, reflecting a nominal increase of 1,4%, but -3.4% real change.
3.4 Programme 4 : Rental and Social Housing As part of efforts to improve the functioning of the rental housing market, over the medium term, the Department would focus on increasing the number of social housing units for rental, with the aim of delivering 8 000 units per year.

To this end, expenditure on project development for social housing was set to constitute 89.4% (R2.6 billion) of the total expenditure over the medium term.
Expenditure was expected to increase at an average annual rate of 4.3%, from R887.4 million in 2022/23 to R1 billion in 2025/26.

The Public Entity Oversight sub-programme received the bulk of the allocation under Programme 4.

The allocation increased to R922,7 million in 2023/24, representing a real percent change of -0.9%.

All three sub-programmes experienced a real percentage decreases.
3.4 Programme 5 : Affordable Housing Programme 5 provides housing finance for the Gap-market, or households that earn too much to qualify for a full housing subsidy but too little to qualify for a mortgage loan.

The Finance Linked Individual Subsidy Programme (FLISP) or the First Home Finance (FHF) programme, which is set to disburse 10 405 subsidies over the medium term to first‐time home buyers at a projected cost of R1.6 billion over the MTEF period.
As a result, a total expenditure is expected to increase at an 7 124 average annual rate of 4.7%, from R942.6 million in 2022/23 to R1.1 billion in 2025/26.

The Public Entity Oversight sub-programme receives the largest proportion of the allocation under this programme.

Its allocation grows from R512,2 million in 2022/23 to R516,8 million currently, representing a real percent change of -3.8%.
The decrease can be observed in the Management for Affordable Housing sub-programme, with a real percent change of 16.6%.

The allocation to the sub-programme decreased from R4,86 million in 2022/23, to R 4,2 million in 2023/24.

The following section provides the Departmental Annual targets of 2023/24 Financial Year.

4.

Departmental Annual Targets per Branch 4.1 Office of the Director- General • Percentage compliance with statutory prescripts – 100% compliance with statutory prescripts.
• Percentage implementation of approved Risk Management Implementation Plan - 100% implementation of approved risk management plan.

• Percentage implementation of approved internal audit plan – 100% implementation of approved internal audit plan.

• Percentage execution of approved anti-fraud and corruption implementation plan - 100% implementation of approved Anti-fraud and Corruption Implementation Plan.
4.2 Corporate Services • Percentage implementation of Human Resources implementation plan - 100% implementation of Human Resources implementation plan.

8 125 • Percentage implementation of Approved annual ICT Plan - 100% implementation of approved Annual ICT Plan.

• Percentage implementation of approved Communication plan - 100% implementation of approved Communication Plan.
• Digital Transformation Strategy and Implementation Plan Implemented - Signed Service Level Agreement on development of Digital Transformation Strategy and Implementation Plan.

4.3 Chief Financial Office • Percentage compliance with statutory prescripts - 100% compliance with statutory prescripts.

• Human Settlements Grants Framework Approved - 2024/25 Human Settlements Grants Framework Approved.
• Number of quarterly assessments conducted on performance of human settlements grants (HSDG, and ISUPG) - 8 quarterly assessments conducted on performance of each human settlements grant.

• Number of quarterly assessments conducted on performance of human settlements grants (USDG and ISUPG) - 8 quarterly assessments conducted on performance of each human settlements grant.
• Number of reports on monitoring of set aside for the designated groups (USDG and HSDG) - 4 reports on monitoring of set aside for the designated groups.

4.4 Research, Policy, Strategy and Planning 9 126 • Number of reports on monitoring the development of integrated implementation programmes for PDAs - 2 reports on monitoring the development of integrated implementation programmes for PDAs.
• Number of reports on monitoring the Human Settlements allocations to PDAs - 2 reports on monitoring the Human Settlements allocations to PDAs.

• Number of reports on monitoring rezoning of land acquired within PDAs during 2014-2019 - 2 reports on monitoring rezoning of land acquired within PDAs during 2014-2019.

• Business plans assessed - Provincial and Metros Business Plans assessed.

• 2019-2024 MTSF reviewed - Review of the 2019-2024 MTSF.
• Draft 2025-2030 MTSF developed - Draft 2025-2030 MTSF developed.

• Number of policy programmes approved - 1 Policy Programme approved.

• Number of policies approved - 1 policy approved: Policy Foundation for Housing and Human Settlements submission for approval.

• Research Agenda approved - Approved Research Agenda.

4.5 Entities oversight, Intergovernmental Relations, Monitoring and Evaluation • Number of reports on monitoring of entities performance - 4 reports on monitoring of entities performance.
• Number of intergovernmental relations programmes implemented - 17 intergovernmental relations programmes implemented.

10 127 • Number of reports on monitoring of projects as per approved business plans - 4 Reports on monitoring of projects as per approved business plans.

• Number of evaluation studies completed - 1 Evaluation study completed: Design and Implementation evaluation of the Priority Human Settlements and Housing Development Areas Programme (PHSHDA).
4.6 Informal Settlements Upgrading and Emergency Housing • Number of Provinces and Metros provided with support in the upgrading of informal settlements with permanent engineering services - Support provided to 9 Provinces and 8 Metros in the upgrading of informal settlements with permanent engineering services.

• Emergency housing guidelines developed - Emergency housing guidelines developed.
4.7 Affordable, Rental and Social Housing • Number of reports on the monitoring of Rental Housing Programme - 2 reports on the monitoring of Rental Housing Programme.

• Number of reports on the monitoring of the CRUs programme - 4 reports on the monitoring of the CRUs programme.

• Number of quarterly reports on title deeds registered - 4 Quarterly Reports on title deeds registered.
• Number of reports on monitoring of blocked projects across 9 provinces - 4 reports on monitoring of 320 blocked projects across 9 provinces.

11 128 • Number of reports on monitoring the delivery of BNG units - 4 reports on monitoring the delivery of BNG units.

• Number of reports on monitoring the delivery of Serviced sites - 4 reports on monitoring the delivery of Serviced sites.
• Number of reports on monitoring of households that received financial assistance through FHF (FLISP) - 4 reports on monitoring of households that received financial assistance through FHF.

• Number of reports on the creation of job opportunities - 4 quarterly reports on the creation of job opportunities.

• Number of reports on monitoring the eradication of asbestos roofs - 4 reports on monitoring the eradication of asbestos roofs.
• Number of Provinces provided with support in the eradication of uninhabitable mud houses - 7 Provinces provided with support in the eradication of uninhabitable mud houses.

5.

Human Settlements entities budget and annual performance plan 5.1 Housing Development Agency (HDA) Budget The agency derives revenue from programme management fees and transfers from the Department.

Revenue was expected to increase in line with expenditure.
Over the medium term, the agency would continue to focus on assisting provinces and municipalities with the implementation of human settlements programmes and projects.

The agency was expected to provide upgrading support to provinces and municipalities for 850 informal settlements.

Spending on built environment projects constituted the largest spending item in the budget at 56.4%.
Expenditure 12 129 was expected to increase at an average annual rate of 4%, from R503.7 million in 2022/23 to R566.7 million in 2025/26.

5.1.1 Annual Targets for the HDA, 2023/24 Financial Year 5.1.1.1 Administration • Unqualified audit outcome with no material findings - Unqualified audit outcome.

• Percentage of annual HDA procurement spend, targeted at businesses owned by women - 45% of annual HDA procurement spend, targeted at businesses owned by Women.
• Percentage of annual HDA procurement spend, targeted at businesses owned by youth - 25% of annual HDA procurement spend, targeted at businesses owned by Youth.

• Percentage of annual HDA procurement spend, per financial year, targeted at businesses owned by Persons with disabilities - 7% of annual HDA procurement spend, per financial year, targeted at businesses owned by Persons with disabilities.
• Percentage implementation of the approved internal audit plan - 100% implementation of the approved internal audit plan.

• Percentage Implementation of Anti-fraud and corruption plan - 100% implementation of an anti-fraud and corruption plan.

• Percentage Implementation of the approved risk management plan - 100% Implementation of the approved anti- fraud and Corruption Plan.
5.1.1.2 Land Assembly and Priority Development Areas (PDAs) 13 130 • Number of integrated implementation programmes for PDAs completed per year – 10 Integrated implementation of programmes for PDAs prepared.

• Number of hectares of well- located land acquired within PDAs – 1000 hectares of well-located acquired within PDAs.

• Number of hectares of land rezoned for Human Settlements development - 550 hectares of land rezoned for Human Settlements development.
• Number of hectares of well-located land acquired and/or released for human settlements development - 1000 hectares of well-located land acquired or released.

5.1.1.3 Programme 3: Programme Planning and Design and Regional Coordination and Human Settlements Implementation Support Services • Number of Informal settlements supported for upgrading to phase 3 of the UISP - 250 informal settlements supported for upgrading between Phase 1 to Phase 3.
• Number of development programme and project plans drafted for funding and implementation - 5 draft project development plans drafted for funding and implementation.

• Number of priority projects provided with implementation support - 6 Priority projects provided with implementation support.
• Number of provinces provided with programme planning and implementation support for the revitalization of distressed mining communities - 6 Provinces provided with programme planning and implementation support for the revitalisation of distressed mining communities.

14 131 • Number of Monitoring Reports on the Set Aside for The Designated Groups - 4 of Monitoring Reports on the Set Aside for the Designated Groups Project Funding.

• Number of housing units delivered i.r.o.


projects implemented by the HDA - 1386 Housing units delivered i.r.o.

projects implemented by the HDA.

• Number of serviced sites delivered i.r.o.

projects implemented by HDA - 953 Serviced sites delivered i.r.o.

projects implemented by the HDA.

• Number of asbestos roofs Replaced i.r.o.

projects managed by the HDA - 1200 Asbestos roofs replaced i.r.o.

projects managed by the HDA.


• Number of Temporary Emergency Accommodation managed by the HDA - 3 of Temporary Emergency Accommodation managed by the HDA.

• Number of Title deeds registered - 882 title deeds registered.

5.2 Social Housing Regulatory Authority (SHRA) Budget The entity derives all its revenue through transfers from the Department.

Revenue was expected to increase in line with expenditure.
However, over the medium term, SHRA would focus on increasing the number of social housing units for rental, with the aim of delivering 8 000 units per year.

To this end, expenditure on project development for social housing was set to constitute 89.4% (R2.6 billion) of total expenditure over the medium term.

Expenditure was expected to increase at an average annual rate of 4.3%, from R887.4 million in 2022/23 to R1 billion by 2025/26.


15 132 Overall, the entity’s budget increased with R35,4 million from the previous year, to R922.7 million.
This translated to a nominal increase of 4,0%, but when calculating the inflationary effect declines with 0.9% from the previous year.

Programme received the largest share of the entity’s budget with an allocation of R826 million.

This was 89.5% of the entity’s total budget.

Despite an increase of R34,9 million, Programme 2’s allocation actually declined with 0.5% in real terms.

Programme 4 experienced the most significant decline from of all four programmes, i.e.
27.8% nominally (and 31.2% in real terms).

Overall, none of the four programmes experienced above inflation increases to its allocations for 2023/24.

5.2.1 Annual Targets for the SHRA, 2023/24 Financial Year 5.2.1.1.

Programme 1: Administration • External audit outcome - Unqualified audit opinion with no findings.

• Percentage implementation of the Internal Audit Plan – 100% implementation of the Internal Audit Plan.
• Percentage implementation of the Fraud Prevention Plan – 100% implementation of the Fraud Prevention Plan.

• Percentage implementation of the Risk Management Plan - 100% implementation of the Risk Management Plan.

• Percentage implementation of a Rental Boycott Strategy – 80% implementation of a Rental Boycott Strategy.

• Percentage of SHRA procurement spend on businesses majority-owned by women – 40% of SHRA procurement spend on businesses majority-owned by women.
• Percentage of SHRA procurement spend on businesses majority-owned by youth – 16% of SHRA procurement spend on businesses majority-owned by youth.

16 133 • Percentage of SHRA procurement spend on businesses majority-owned by persons living with disabilities - 5% of SHRA procurement spend on businesses majority-owned by persons living with disabilities.

5.2.1.2.
5.2.1.2.

Programme 2: Compliance, Accreditation and Regulations • Percentage of the Remedial Action plan implemented - 70% of the Remedial Action plan implemented.

• Number of subsidised housing units' tenancy audits conducted - 3 750 of subsidised housing units' tenancy audits conducted.

• Number of Compliance Monitoring Inspections conducted – 8 of Compliance Monitoring Inspections conducted.

• Number of Building Condition Audits conducted – 10 of Building Condition Audits conducted.
• Number of fully accredited institutions – 10 fully accredited institutions.

• Percentage of projects accredited from other delivery agents that are majority black- owned – 75% of projects accredited from other delivery agents that are majority black- owned.

5.2.1.3.

Programme 3: Sector Development and Transformation • Percentage achievement of the SHI Intervention Plan – 80% achievement of the SHI Intervention Plan.
• Percentage achievement of the Social Housing Projects’ Intervention Plan – 75% achievement of the Social Housing Projects’ Intervention Plan.

• Number of municipalities having received support – 3 municipalities supported.

• Number of youth graduates placed – 15 of youth graduates placed.

17 134 5.2.1.4.

Programme 4: Project Development and Funding • Number of social housing units completed – 3200 of social housing units completed.
• Number of social housing units tenanted – 3200 of social housing units tenanted.

• Percentage expenditure of the approved annual Consolidated Capital Grant cash flow projection – 95% of expenditure of the approved annual Consolidated Capital Grant cash flow projection.

• Percentage of Consolidated Capital Grant awarded to black majority owned enterprises – 75% of Consolidated Capital Grant awarded to black majority owned enterprises.
• Percentage spent by grant recipients on main contractors and professional teams that are from the designated groups – 25% spent by grant recipients on main contractors and professional teams that are from the designated groups.

• Number of job opportunities created through projects implemented – 6 938 of job opportunities created through projects implemented.

5.3 Community Schemes Ombud Services (CSOS) Budget CSOS derives its revenue through levies paid by community schemes.
Revenue was expected to increase in line with collected levies.

The Service would focus on ensuring that 80% of scheme governance documents would be registered and compliant with the legislative framework by 2025/26.

To this end, spending on regulation was expected to increase at an average annual rate of 5.6%, from R117.5 million in 2022/23 to R138.6 million by 2025/26.
Total expenditure was expected to increase from R431.9 million in 2022/23 to R467.2 million in 2025/26 at an average annual rate of 2.7%.

CSOS would incur an operating deficit in 2023/24 as its expenditure plans include spending the surplus funds it generated in 2021/22, for which National Treasury approval has been granted.

18 135 The CSOS allocation for 2023/24 was R444,1 million.

It reflected an increase of 5,3% in nominal terms, but 0,42% in real terms.
Programme 1, which is responsible for ensuring that functions that support the core operations are sustainable and implemented effectively, received 64.9% of the overall allocation.

However, it was the only of the entity’s programmes that declines in both nominal and real terms.

Its R286.4 million allocation was 3.1% nominally less than the previous year.

Programme 3: Education and Training, responsible for training and consumer awareness, received the lowest portion of the entity’s overall budget, i.e.
4.8%.

However, its R21,5 million allocation reflected significant growth from the previous year, i.e.

147.1% nominal growth.

Programme 2, which provides the core operations, increased by 15.9% nominally from the previous year.
5.3.1 Annual Targets for the CSOS, 2023/24 Financial Year 5.3.1.1 Outcome 1: Functional, Efficient and integrated Government • Percentage of the approved Anti-Fraud and Corruption Implementation Plan implemented – 100% of the approved Anti-Fraud and Corruption Implementation Plan implemented.

• Percentage implementation of the approved risk management plan – 100% implementation of the approved risk management plan.
• Percentage implementation of Internal Audit plan – 100% implementation of Internal Audit plan.

• Number of new transactional sites established (satellite office) – 3 new satellite offices established.

5.3.1.2 Outcome 2: Effectively regulated Community Scheme Sector • Amount of CSOS levy collected – an amount of R408,698,702 collected.

19 136 • Percentage of unregistered schemes registered – 25% of unregistered schemes registered.
• Percentage of registered community schemes compliant – 65% of registered community schemes compliant.

• Percentage of quality assured schemes governance documentation – 95% of quality assured schemes governance documentation.

• Percentage of compliance certificates issued on all amended scheme documents – 100% of compliance certificates issued on all amended scheme documents.
5.3.1.3 Outcome 3: Effectively Disputes Resolution • Percentage of disputes assessed within 30 days – 90% of disputes assessed within 30 days.

• Percentage of disputes conciliated within 45 days – 90% of disputes conciliated within 45 days.

• Percentage of disputes adjudicated within 90 days – 90% of disputes adjudicated within 90 days.

• Percentage of adjudication orders quality assured within 7 days – 95% of adjudication orders quality assured within 7 days.
5.3.1.4 Outcome 4: Empowered stakeholders • Number of training and education sessions conducted for schemes executives and owners – 85 training and education sessions conducted for schemes executives and owners.

• Number of training sessions conducted for adjudicators and conciliators – 16 training sessions conducted for adjudicators and conciliators.

• Number of stakeholder information sessions conducted – 18 stakeholder information sessions conducted.
20 137 5.3.1.5 Outcome 5: Transformation of community schemes advanced • Number of previously disadvantaged individuals trained and supported as executive managing agents – 40 previously disadvantaged individuals trained and supported as executive managing agents.

• Percentage of community schemes’ requests for Executive Managing Agents awarded to previously disadvantaged individuals – 90% of community schemes’ requests for Executive Managing Agents awarded to previously disadvantaged individuals.
• Percentage procurement spend on businesses owned by women – 40% of procurement spend on businesses owned by women.

• Percentage procurement spend on businesses owned by Youth – 16% of procurement spend on businesses owned by Youth.

• Percentage procurement spend on businesses owned by persons with disabilities – 5% of procurement spend on businesses owned by persons with disabilities.
• Percentage of annual procurement spend, targeted at businesses owned by Military Veteran – 5% of annual procurement spend, targeted at businesses owned by Military Veteran.

5.4 National Housing Finance Corporation (NHFC) Budget The corporation would focus on increasing affordable housing finance to intermediaries over the medium term.

As such, its loan book was expected to increase from R4.5 billion in 2022/23 to R5.9 billion in 2025/26.
To fund this growth, the Corporation requested the Minister of Finance’s approval to borrow in terms of section 66(5) of the Public Finance Management Act (1999).

The corporation was also mandated to administer the finance‐linked subsidy programme, which is set to disburse 10 405 subsidies over the medium term to first‐time home buyers at a projected cost of R1.6 billion over the MTEF period.
As a result, total expenditure was expected to increase at an 21 138 average annual rate of 4.7 percent, from R942.6 million in 2022/23 to R1.1 billion in 2025/26.

The Corporation derives its revenue from interest on loans, income from controlled entities and revenue from rental properties and management fees.

Total revenue was expected to increase at an average annual rate of 3.2 per cent, from R1.2 billion in 2022/23 to R1.3 billion in 2025/26.
5.4.1 Annual Targets for the NFHC, 2023/24 Financial Year 5.4.1.1 Programme 1: Administration • Percent implementation of the risk management plan - 100% implementation of the risk management plan.

• Percent procurement spent on businesses owned by persons with disabilities - 5% procurement spent on businesses owned by persons with disabilities.

• Percent spent on businesses owned by Military Veterans - 5% spent on businesses owned by Military Veterans.
• Unqualified audit opinion with no material findings - Unqualified audit opinion with no material findings.

• Number of learners hired into learnership programmes - 10 learners hired into learnership programmes.

• Percentage procurement spent on businesses owned by women - 40% procurement spent on businesses owned by women.

• Percentage procurement spent on businesses owned by youth - 16% procurement spent on businesses owned by youth.
• Unqualified audit opinion with no material findings - Unqualified audit opinion with no material findings.

• Number of learners hired into learnership programmes - 10 learners hired into learnership programmes.

22 139 5.4.1.2 Programme 2: Integrated Human Settlements Planning and Development • Sign agreements with key stakeholders in the sector to undertake interventions to improve planning, financing, and delivery of affordable housing projects - Sign three agreements.
• Subsidy Housing - Bridging Finance - Disbursements of approved loans of R58 million.

5.4.1.3 Programme 4: Rental and Social Housing • Social Housing Finance - Disbursements of approved loans of R65 million.

• Social Housing Finance - Value of approval of R200 million.

• Private Rental Housing Finance - Value of approval R185 million.

5.4.1.4 Programme 5: Affordable Housing • Number of subsidy applications approved – 4615 of subsidy applications approved.
• Value of approvals – First Home Finance Grant - R300 million First Home Finance Grant approved.

• Value of disbursements – First Home Finance Grant – R240 million disbursed for First Home Finance Grant.

• Number of subsidies disbursed – 3692 subsidies disbursed.

• Amount leveraged from private sector – R1, 760 million leveraged form the private sector.

• Value of consolidated disbursements – affordable housing products – R733 million disbursed- affordable housing products.
• Value of disbursements - Strategic Investments – R61 million disbursed.

• Affordable Housing - Bridging Finance Approval – R456 million Bridging Finance approved.

23 140 • Incremental Housing Finance Approval – R208 million incremental Housing Finance approved.

• Affordable Housing -Strategic Investments approved – R99 million approved for Affordable Housing- Strategic investments.
• Value of disbursements targeted towards designated groups – R319 million disbursements targeted towards designated groups.

• Value of disbursements targeted towards B-BBEE compliant companies - Level 4, 3, 2, 1 Contributor – R239 million disbursement targeted towards B-BBEE compliant companies.

• Value of disbursements targeted towards black owned entities – R239 million disbursed towards black owned entities.
• Value of payments to black and designated group owned contractors – R75 million payment to black and designated group owned contractors.

• Number of SMME's appointed on managed programmes – 128 SMME’s appointed on managed programmes.

• Approved implementation plan for an entrepreneur incubator programme targeting residential developers owned by designated groups and black people – Undertake and complete preparatory work and secure approval.
5.5 Property Practitioners Regulatory Authority (PPRA) Budget Over the medium term, the Authority would focus on improving compliance within the sector by inspecting a targeted 920 estate agencies and renewing 211 128 fidelity fund certificates.

Spending on compliance constituted a projected 25.8 percent (R157.5 million) of total expenditure, increasing from R49.2 million in 2022/23 to R56.6 million in 2025/26 at an average annual rate of 4.8 percent.
Total expenditure was expected to decrease at an average annual rate of 3.8 percent, from R230.3 million in 2022/23 to R204.8 million in 2025/26, as the authority repositions from 24 141 the old Estate Agency Affairs Board to become a streamlined regulator in the sector.

The authority derives its revenue from fees and levies from property practitioners and fees from managing the Property Practitioners Fidelity Fund.
5.5.1 Annual Targets for the PPRA, 2023/24 Financial Year 5.5.1.1 Programme 1: Administration • Unqualified audit opinion with no material findings - Unqualified audit opinion with no material findings.

• Internal Audit Report - 100% implementation of the approved internal audit annual plan.

• Percentage implementation of the approved risk management plan - 100% implementation of the approved risk management plan.
• Percentage implementation of fraud prevention plan - 100% implementation of fraud prevention plan.

• Percentage procurement spent on businesses owned by persons with disabilities - 5% procurement spent on businesses owned by persons with disabilities.

• Percentage procurement spent on businesses owned by military veterans - 5% procurement spent on businesses owned by military veterans.

• Percentage procurement spent on businesses owned by women - 40% procurement spent on businesses owned by women.
• Percentage procurement spent on businesses owned by youth - 16% procurement spent on businesses owned by youth.

• Percentage of consumer queries resolved within 90 days - 85% of consumer queries resolved within 90 days.

• Percentage integration of ERP - 100% implementation of ERP integrated system.
5.5.1.2 Programme 2: Licensing 25 142 • Number of property practitioners registered on the database of the PPRA per annum - 8 000 new (compliant) property practitioners registered on the database of the PPRA per annum.

• Percentage of all compliant new registrations processed within 30 working days - 100% of all compliant new registrations processed within 30 working days.
• Percentage of compliant renewals processed within 30 working days of payment reconciliation - 85% of compliant renewals processed within 30 working days of payment reconciliation.

5.5.1.3 Programme 3: Inspections and Enforcement • Number of PPA Inspections Conducted per annum - 210 PPA inspections conducted per annum.

• Percentage of completed investigations requiring mediation are mediated within 30 days from date of notice of mediation - 75% of investigations that are completed through mediation.
• Percentage of completed investigations requiring adjudication are adjudicated within 60 days - 100% of adjudicators ‘orders enforced by serving on the respondents.

5.5.1.4 Programme 4: Education, Professionalization, CPD • Number of Property Practitioners (Estate Agents) awarded professional designations in the year - 1500 property practitioners (estate agents) awarded professional designations in the year.
• Number of property practitioners fully meeting CPD requirements in the year - 12 000 property practitioners fully meeting CPD requirements in the year.

26 143 5.5.1.5 Programme 5: Research Centre • Percentage of approved transformation agenda items researched - 60% of approved transformation agenda items researched.

• Percentage of research report prioritised recommendations implemented - 10% of the research report prioritised recommendations implemented.
• Percentage Implementation of the Consumer Awareness Programme - 100% Implementation of the Consumer Awareness Programme.

• Number of black women principals established through the Principalization Programme - 400 black women principals established through the Principalization Programme.

• Number of principals established through the Principalization Programme - 1000 principals established through the implementation of the Principalization Programme.
• Number of candidate practitioners placed with property industry host employers through the “One Learner - One Property Practitioner” Programme - 500 candidate practitioners placed with property industry host employers through the “One Learner - One Property Practitioner” Programme.
5.5.1.6 Programme 6: Property Sector Transformation • Number of SMMEs owned by historically disadvantaged groups placed through the incubation programme - 25 SMMEs owned by historically disadvantaged groups placed through the incubation programme.

5.5.1.7 Programme 7: Transformation Fund • Percentage of Implementation of the transformation fund strategy - 100 % Implementation of the transformation fund strategy.
27 144 5.5.1.8 Programme 8: Fidelity Fund • Percentage of fully compliant claims paid within six months - 100% of fully compliant claims paid within 90 days of lodgement.

5.6 National Homebuilders Registration Council (NHBRC) Budget The Council would continue to focus on improving compliance with building standards by inspecting a targeted 448 749 homes over the MTEF period.
Total expenditure was expected to increase from R862.8 million in 2022/23 to R949.3 million in 2025/26 at an average annual rate of 3.2 per cent.

The Council generates its revenue through fees for the enrolment of newly constructed homes, the registration and renewal of membership for home builders, and the provision of technical services.
Revenue was expected to increase at an average annual rate of 4.4 per cent, from R1.3 billion in 2022/23 to R1.5 billion in 2025/26 as 45 280 home builder memberships are renewed, and 155 420 houses in the subsidy sector and 137 703 houses in the non‐subsidy sector are enrolled to protect consumers against poor workmanship.

5.6.1 Annual Targets for the NHBRC, 2023/24 Financial Year 5.6.1.1 Programme 1 • Unqualified audit opinion with material findings – Unqualified audit opinion with no material findings.
• Percentage implementation of the annual internal audit plan - 100% implementation of the annual internal audit plan.

• Percentage implementation of the Anti-Fraud and Corruption plan – 100% implementation of the anti-fraud and corruption plan.

• Percentage implementation of the risk management plan - 100% implementation of the risk management plan.

28 145 • Percentage implementation of Communication Plan - 100% implementation of Communication Plan.
• Percentage procurement spent on businesses owned by women - 40% procurement spent on businesses owned by women.

• Percentage procurement spent on businesses owned by youth - 16% procurement spent on businesses owned by youth.

• Percentage procurement spent on businesses owned by people with disabilities - 5% procurement spent on businesses owned by people with disabilities.
• Percentage procurement spent on businesses owned by Military Veterans - 5% procurement spent on businesses owned by Military Veterans.

• Percentage savings on budgeted expenditure - 10% savings on budgeted expenditure.

5.6.1.2 Programme 2 • Number of home builders registered – 3 400 home builders registered.

• Number of registrations renewed – 15 950 registrations renewed.

• Number of homes inspected non-subsidy – 28 000 homes inspected non-subsidy.
• Number of homes inspected subsidy - 28000 homes inspected subsidy.

• Percentage of prosecutable matters suspended – 100 of prosecutable matters suspended.

• Percentage of prosecutable matters set down for hearing – 100 of prosecutable matters set down for hearing.

• Percentage of disputes resolved – 100 disputes resolved.

• Number of homebuilders trained – 2 300 homebuilders trained.

• Number of Youth trained – 1 800 Youth trained.

• Number of Women trained – 2 000 Women trained.


• Number of Military Veterans trained – 200 Military Veterans trained.

• Number of people with disabilities trained – 250 people with disabilities trained.

29 146 • Number of Technical professionals trained – 750 Technical professionals trained.

• Number of Artisans trained – 650 Artisans trained.

5.6.1.3 Programme 3 • Percentage of Enrolment applications approved Subsidy - 100% of enrolment applications approved Subsidy.
• Percentage of enrolment applications approved subsidy projects - 100% of enrolment applications approved subsidy projects.

• Percentage of enrolment applications approved Non –subsidy - 100% of enrolment applications approved non subsidy.

• Evaluation and monitoring of constructed Green First Zero energy model house - Evaluation and monitoring of constructed Green First Zero energy model house.

6.
6.

Committee observations and recommendations The Committee, having been briefed by the Department and its entities on its revised strategic plans, annual performance plans and budget, deliberated and made the following observations and recommendations.
The Minister must ensure the implementation of these recommendations: 6.1 Observation: Noted that according to the Executive Authority statement in the APP of 2022/23, MINMEC agreed, to a number of priorities for the year, including increased issuing of title deeds with specific focus on clearing the pre-1994 stock; eradication of mud houses; digitization of the Beneficiary list; unblocking blocked projects; addressing asbestos roofs; and an increase on serviced sites.
This priorities, continued to form part of the current financial year (2023/24).

Some of these priorities were not easily traceable or specific in the APP targets and indicators, which makes it difficult to identify and track.

For example, there were no clear targets 30 147 for the number of mud houses to be rectified, or the number of title deeds to be issued, or a deadline for the digitization of the beneficiary list.
The Committee welcomed the Departmental prioritization of the three-year plan to unblocking of blocked projects, elimination of asbestos roofs and eradication of mud houses.

However, the Committee expressed a concern about the confusion between blocked projects and rectification programme.

Recommendation: Fast- track the unblocking of blocked projects, elimination of asbestos roofs and of mud houses.

Ensure that projects that are 80% un-implementable are considered to be blocked.
Use the Project Readiness Matrix to determine project readiness or feasibility.

Provide a list of blocked projects in the country and a strategy to unblock them the Committee.

The Department must also present the targets for mud houses.

This list would also assist individual Members on their oversight initiatives.

This list and strategy must be presented to the Committee within 7 days after adoption this report.
6.2 Observation: noted with concern that work in this was slow progress digitization of the housing beneficiary lists, which poses a challenge on rightful beneficiaries.

This was because digitization would ensure transparency and accountability.

However, the Committee was concerned about the slow progress.

Recommendation: Fast-track the digitization process of housing beneficiary lists.

Provide constant feedback to the Committee on progress made.
The Department should present work done around the digitization of the lists within 3 months and Report to the Committee quarterly.

6.3 Observation: Noted progress made in the filling of vacant posts in the Department and Entities.

The Committee also welcomed the finalization of the redeployment of the previous Director General (DG) to the Department of Cooperative Governance and Traditional Affairs.
The 31 148 Committee further noted the resignation of the HDA Chairperson and slow progress in the appointment of SHRA CEO.

Recommendation: Fast-track the appointment of the new DG in order to create stability in the Department.

Appoint the new HDA board and PPRA Chairperson to ensure stability and accountability.

6.4 Observation: Welcomed the phasing off of the Emergency Housing Grant in order to move towards more cost-effective alternative housing technologies.
This was because the Emergency Housing Programme was deemed to be costly to implement.

This was also because Provincial Departments and municipalities were not utilizing the grant effectively.

The Committee also welcomed the use of Alternative Building Technologies (ABTs) which can be assembled within 7 days.

Recommendation: Ensure that ABTs is communicated to communities to ensure their buy-in and support.

Furthermore, ensure that ABTs comply with the South African Bureau of Standards (SABS).
Present to the Committee the guidelines use to deal with emergency housing within 2 weeks.

6.5 Observation: That the quality of service provided to citizens was still a challenge due to fact that housing was a concurrent function.

The Committee also observes a lack of coordination in providing services of the citizens.

This also results in poor performance by implementers and lack of accountability.

Recommendation: Strengthen coordination in all spheres of government.
Closely monitor the role of all spheres of government in the housing development.

Ensure that dedicated responsibilities are adhered by Provincial and Local Government.

32 149 6.6 Observation: Concerned about reported cases of selling of government provided houses on social media.

Recommendation: Provide beneficiaries with copies of happy letters that include an explanation of how a government provided house can be sold.
6.7 Observation: Welcome the digitalization of the inspection model to reduce corruption.

That monitoring of human settlements projects by the Department was generally poor.

This include the invisible role of NHBRC inspectors in ensuring quality of houses provided.

Some inspectors were alleged to be taking bribes in order to approve poor workmanship.

As a result, some houses had poor flooring and poor building materials.

This was prevalent in all provinces.


Conversely, inspectors reported to be attacked and killed when doing inspections.

Recommendation: Provide necessary monitoring support to municipalities to ensure that issues in projects are identified and addressed at project inception.

Ensure the visibility of NHBRC inspectors in all provinces in the country.

Ensure consequence management for NHBRC inspectors who collude with contractors to approve poor workmanship.

Conduct lifestyle audits on NHBRC inspectors.


Put measures in place to protect inspectors from being attacked and killed.

The model should be presented to the Committee within 3 weeks.

6.8 Observation: Welcome changes in the payment system of contractors.

That the bulk of monies would no longer be paid on the completion of foundation phase of housing construction.

This would be done to ensure that contractors do finish projects.
Recommendation: Fast-track the changing of the contractor payment system to ensure that contractors do not leave construction work at foundation phase.

33 150 6.9 Observation: Noted intended changes in subsidy quantum to accommodate inflation.

Recommendation: Changes in the subsidy quantum were welcomed by the Committee.

The Committee pleaded with the Department to ensure that the increase of the subsidy quantum should result in improved housing product and contractors should account every sent.
6.10 Observation: Noted a policy changes to provide burglar guards for disabled people.

This was because there were lot of break-ins in houses owned by people with disability.

Recommendation: Ensure the implementation of this policy change to protect disable people who are vulnerable to crime.

6.11 Observation: Welcome a policy change to install solar panels and water tanks for new BNG houses in order to address energy shortages and reduce the reliance on municipalities for water services.
Recommendation: Fast-track the installation of solar panels and water tanks for new BNG houses to ensure that beneficiaries do not solely rely on the power grid and municipal water services.

This would also contribute to sustainable human settlements development and environmental protection because of the use of renewable energy sources.

6.12 Observation: Concerned about the slow pace of the issuing of title deeds, especially the backlog of the pre-1994 title deeds.
This was a concern for the Committee because this was a recurring problem, yet having a title deed present real empowerment of housing beneficiaries.

The Department had only addressed 7% of one million title deeds backlog.

However, the Committee welcomed the development of a strategy to improve the issuance of title deeds.

Recommendation: Fast-tract the development of the strategy to improve the issuance of title deeds.
Present the strategy to the Committee within 5 weeks after the adoption of the report.

34 151 6.13 Observation: That there was a substantial increase of funds allocated to consultants while internal capacity in the Department was not adequately utilized.

This increase was observed in the Upgrading of Informal Settlements Programme.

Recommendation: Reduce the reliance of the Department on consultants.

Use internal capacity in the Department.


Use the HDA, as an implementing agent, to assist with the implementation of the Upgrading of Informal Settlements Programme and other technical programmes.

6.14 Observation: Noted that there were several reports on housing scamming in country, for example Lufhereng housing project.

Recommendation: Involve the South African Police Service (SAPS) to deal with scamming in all human settlements projects.
Ensure consumer education takes place before projects commencement.

Involve community structure to identify and report these scammers.

6.15 Observation: That illegal sale of RDP or BNG house was a happening at a perpetual rate.

This further complicated the title deeds system because of undocumented changes in ownership.

Recommendation: The Department, through the Minister, should make strong statement against the informal sale of RDP or BNG houses.
6.16 Observation: That business plans, APPs, and grants of the various spheres were not synchronized.

Recommendation: Enforce the utilization of the District Development Model (DDM) to ensure integrated and coordinated planning in all spheres of government.

6.17 Observation: That the NHFC had changed the FLISP to FHF, yet the Department was still refereeing to FLISP.

The Committee was also concerned that this change of name might confuse prospective beneficiaries who were used to the FLISP programme.
35 152 Recommendation: Ensure alignment of plans of the Department and entities.

Ensure that there is adequate education on the name change from FLISP to FHF.

6.18 Observation: That Metros such as the City of Johannesburg, Tshwane, and Mangaung had been deliberately not coming to the Committee to account.

Recommendation: Withhold grant funding to the mentioned Metros until they account to the Committee.
6.19 Observation: That issues identified by the Auditor General (AG) on Entities were often not followed up by the Department.

Recommendation: Ensure consistent monitoring of the core business of entities and address issues raised by the AG and internal audit.

6.20 Observation: Observed that the HDA was not assisting municipalities in the Eastern Cape.

Recommendation: Ensure that the HDA provides assistance to municipalities in the Eastern Cape.
6.21 Observation: That the CSOS was not visible in rural areas.

Recommendation: Ensure the visibility of CSOS in rural areas.

Conduct public education campaigns on the role of CSOS and report progress to the Committee on quarterly bases.

6.22 Observation: That CSOSs did not have a policy on revenue collection.

Recommendation: Ensure that CSOS develops policy on revenue collection.

6.23 Observation: That the work of CSOS on community schemes was not understood by communities.
Recommendation: Ensure community education on the role of CSOS.

36 153 6.24 Observation: That contractors registered with NHBRC often do not get appointed by the provincial departments.

Recommendation: Ensure that contractors registered with NHBRC get appointed by the entity.

Department must make sure that only registered contractors get government work.

6.25 Observation: That transformation in property sector was still illusive.
Recommendation: Ensure CSOS and SHRA work together to foster transformation in the property sector.

Use Transformation Fund to foster transformation.

6.26 Observation: That there were several rental boycotts that resulted in some social houses not being maintained.

Recommendation: Ensure that SHRA develops measures to deal with rental boycotts.

People willing and able to pay rent should be considered for social housing.

Report to be considered.

37 154