Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698928418129.pdf (South Africa)
Wednesday, 19 October 2022] No 163—2022] FOURTH SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ WEDNESDAY, 19 OCTOBER 2022 _____________________ TABLE OF CONTENTS COMMITTEE REPORTS National Assembly 1.

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Communications ............................................................................................................... 2 Social Development ........................................................................................................ 31 Social Development ........................................................................................................ 47 Social Development ...................................................................................................... ..63 International Relations and Cooperation ...................................................................... 118 Police ............................................................................................................................ 161 Police ............................................................................................................................ 195 Police ............................................................................................................................ 210 Police ............................................................................................................................ 227 COMMITTEE REPORTS National Assembly 1 1.
Budgetary Review and Recommendations Report of the Portfolio Committee on Communications, dated 18 October 2022 The Portfolio Committee on Communications (the Committee), having considered the performance and submission to National Treasury for the medium-term period of the Government Communication and Information System (herein referred to as the Department) and Media Development and Diversity Agency (herein referred to as the Agency); reports as follows: 1.
Introduction In terms of Chapter 4 of the Constitution of the Republic of South Africa, Act 108 of 1996 (the Constitution), gives a mandate to Portfolio Committees to legislate, conduct oversight over the Executive Authority and also facilitate public participation.

1.1.
1.1.

The mandate of the Department The mandate of the Government Communication and Information System is derived from section 195(g) of the Constitution, which stipulates that the public should be provided with information that is timely, accurate and accessible.

This is in support of the constitutional principles of freedom of expression, and transparent and open governance.
The Department is responsible for providing strategic leadership and coordinating government communication to ensure that the public is informed, and has access to government programmes and policies that benefit them.

1.2.
1.2.

Purpose of the Report The Money Bills Amendment Procedure and Related Matters Act (Act 9 of 2009) sets out the process that allows Parliament to make recommendations to the Minister of Finance as well as the cabinet Minister responsible for the vote to ensure the effectiveness and efficiency of the use of resources to ensure optimal service delivery.
According to Section 5 of the Money Bills Amendment Procedure and Related Matters Act, the National Assembly, through its Committees, must annually assess the performance of each national Department.

The Committee must submit an annual Budgetary Review and 2 Recommendation Report (BRRR) for the Department as it falls under its oversight responsibilities, for tabling in the National Assembly.
This process happens every October of each year when the Committee assesses service delivery performance given available resources, evaluates the effective and efficient use and forward allocation of resources, and may make recommendations on the forward use of resources.

The BRRR also sources documents from the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS).
The comprehensive review and analysis of the previous financial year’s performance, as well as performance to date, form part of this process.

The Standing Committee on Appropriations (SCOA) should consider these when it is considering and reporting on the MTBPS to the National Assembly.
Lastly, this performance report is also in line with Section 195 of the Constitution and other legislative prescripts that guide performance management in the public sector to display and promote transparency and accountability to stakeholders and the public concerning matters under their control.

2.
2.

Role and Mandate of the Committee: (i) (ii) (iii) (iv) (v) (vi) Consider legislation referred to it; Exercise oversight over the Department and it entities; Consider International Agreements referred to it; Consider the Budget Vote of the two Departments; Facilitate public participation process; and Consider all matters referred to it in terms of legislation, the Rules of Parliament and resolutions of the House.

3.
3.

Expenditure Overview Over the medium term, the Government Communication and Information System continue to focus on providing and facilitating strategic government communication and encouraging active citizen participation.

It supported all government departments in conceptualising 3 cohesive campaigns, developing communications strategies and content, disseminating information, and engaging stakeholders.
The Department enhances its delivery of these core services by harnessing various communications structures, such as social media, to reach and provide information to more South Africans.
Expenditure for these activities within the medium term with the allocations to the Content Processing and Dissemination programme (R1.3 billion) and Intergovernmental Coordination and Stakeholder Management programme (R375.4 million), which together accounted for 75.6 per cent of the Department’s budget over the medium term.

Transfers to the Department’s entities accounted for 34.6 per cent (R751.9 million) of its total budget.
The Department kept communities and stakeholders abreast of the government’s progress with the implementation of the district development model, which aimed to improve the coherence and impact of development in 44 districts and eight metropolitan municipalities across the country.

To this end, the Department held community and stakeholder liaison visits and a number of development communication projects per year over the MTEF period.
Spending for these activities was primarily driven by goods and service items, which was allocated 16.9 per cent (R62.4 million) of the total budget in the Intergovernmental Coordination and Stakeholder Management programme.

The Department’s outreach programme used talk shows on community radio and television stations, activations at taxi ranks and malls, commuter train blitzes, imbizos, and door‐to‐door campaigns.
These activities allow the Department to interact with communities and often provide an early warning for any societal issues or discontent.

The outreach programme was allocated R6.3 million for the year under review of the medium term in the Provincial and Local Liaison subprogramme in the Intergovernmental Coordination and Stakeholder Management programme.
R50 million was further allocated to the Products and Platforms subprogramme in the Content Processing and Dissemination programme for the COVID‐19 Vaccine rollout campaign in 2021/22.
4 To make the public aware of the opportunities created by the government, in line with its key priorities, the Department had planned to publish 15.3 million copies of the Vuk’uzenzele newspaper per year over the medium term at an estimated cost of R75 million in the Products and Platforms subprogramme in the Content Processing and Dissemination programme1.
Strategic Overview of the Department In the 2021/22 financial year, communication was again at the forefront of the fight against the Coronavirus Disease (COVID-19) pandemic.

Our nation’s communications, led by the Government Communication and Information System (GCIS), were called on to support our massive national vaccine roll-out.

Government communication played an instrumental role in drawing in all South Africans to be part of our massive vaccination campaign.
GCIS empowered citizens with the necessary information that enabled them to take control of their health and fight the spread of the deadly virus.

Communication in the national vaccine roll-out was guided by a progressive communications strategy based on scientific evidence and shaped by key research on how South Africans view the COVID-19 vaccines.

During the year under review, the GCIS was allocated an additional R50 million to drive communication on COVID-19 vaccinations.
It demonstrated how a funded communication campaign could raise awareness, expand reach and make substantial inroads into changing public perceptions.

To respond to the rapid changes in the communication landscape with the convergence of media and technology, the GCIS developed a Draft Media Development and Diversity Agency (MDDA) Amendment Bill during the 2021/22 financial year.
GCIS work at the MDDA and Brand South Africa (Brand SA) encompassed quarterly performance review sessions, Director- General (DG)/Chief Executive Officer (CEO) engagements, Chief Financial Officer (CFO) meetings and company secretary’s meetings to guide this entity in the key sectors they operate.

1 National Budget 2021 – Estimates of National Expenditure 5 4.
Methodology For the period under review, the Committee, in exercising its oversight role, considered the 2021/22 Annual Reports and Financial Statements of the Department and the Agency on Tuesday, 11 October 2022.

The Annual Reports presentations were preceded by the Auditor- General of South Africa (AGSA), which presented the audit outcomes of the Department and MDDA.
The Committee also considered the 2022 State-of-the-Nation Address (SoNA), National Development Plan (NDP), Committee meetings, oversight reports and the 2020/21 Estimates of National Expenditure (ENE).

There was no report from the Standing Committee on Appropriations (SCOA) nor was there a report from the Standing Committee on Public Accounts (SCOPA).
4.1 Outcomes of the Report This report is aligned with the broader government policy framework, New Growth Path (NGP), NDP and the governing party’s priorities (job creation, poverty alleviation, combating crime and corruption, rural development, education and health).

It reviews the initiatives taken by the Department to ensure that the priorities of the plan are realised.
The report also assesses the financial performance against service delivery performance to ascertain whether the budget allocated to the Department was spent as envisaged in annotated in the Annual Performance Plan (APP).

Finally, it summarises the observations made by the Committee after considering quarterly reports, all other necessary documents, and presentations generated using oversight instruments, before making service delivery recommendations.
5 The Department Section 195 (g) of the Constitution (1996) - Public should be provided with timely, accurate and accessible information.

Deepen democracy and sustain nation-building and patriotism by ensuring that the citizenry is informed about government programmes and that they are able to 6 influence and participate in such programmes.
In 1998, the South African Communication Service was dissolved, and the Department was established by Cabinet, largely based on recommendations contained in the report of the Task Group on Government Communications (ComTask).

The priority of the Department and its entities is to ensure that the public is provided with timely, accurate and accessible information.

Part of the focus has been on information dissemination on Covid-19 as well as access to economic opportunities and social-relief packages.
The Department enjoys a footprint in all nine provinces in line with its mandate.

5.1 Mandate and Legislative Framework The Department was formally 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).
The Department is mandated to coordinate, guide and advise on government communications, including media liaison, development communication and marketing.

Its goal is to achieve integrated, coordinated and clear communication between the government and South African citizens to enable the public’s involvement in the country’s transformation.

The work of the GCIS is further informed by: • The Constitution of the Republic of South Africa of 1996.

• PFMA of 1999, as amended.


• MDDA Act, 2002 (Act 14 of 2002).

• Electronic Communications Act, 2005 (act 36 of 2005).

• The revised 2019-2024 MTSF.

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

• National Treasury’s Framework for Strategic Plans and Annual Performance Plans.

• Public Service Act of 1994.

5.2 Organisational Environment 7 The GCIS staff complement is recognised as the biggest asset of the organisation.
In response to changes in communication practice and delivery, the need for capacity development will ensure the maintenance of a skilled, capable and relevant workforce that is representative of the country's demographics.

More than 95 per cent of staff completed a Personal Development Plan (PDP) for the financial year.

Budget constraints impeded the full implementation of the Workplace Skills Plan (WSP), but the priority was given to training needs in high-pressure areas.
Through the Directorate: of HR Development (HRD), thirty-six (36) senior managers attended training as outlined in their PDPs during the year under review.

The prescribed vacancy rate threshold is 10 per cent, as set by the DPSA.

By the end of the 2021/22 financial year, the vacancy rate of the GCIS was 6.74 per cent.
By 31 March 2022, the GCIS managed to fill three (3) critical executive posts of DDGs that had been vacant for more than three years: DDG: Corporate Services, DDG: Content Processing and Dissemination and DDG: Intergovernmental Coordination and Stakeholder Management.

During the year under review, the GCIS’s management deemed it necessary for the Chief Directorate: HR to scope the conduct of an organisational review exercise for implementation in the 2022/23 financial year.
This was informed by, amongst other elements, the following: • It is a requirement that organisational structures should be reviewed every five years in line with Regulation 25(2) of the Public Service Regulations (PSR) of 2016.

• The increased communication demand across three spheres of government.

• Aligned entities’ mandates that were transferred to the GCIS in the 2020/21 financial year with the mandate of the GCIS, namely the MDDA and Brand SA.
It is a common cause that change in an organisation’s environment often compels a change in strategy, which in turn may require the department to assess the internal/external environment, organisational capacity and current business processes to determine if it is well positioned to support the strategy.

A well-designed structure makes it easier to identify inefficiencies and new problems as the organisation evolves and matures.
Thus, reviewing the structure regularly will ensure that the GCIS is set up for optimal growth and service delivery well into the future.

Financial disclosures form part of the government’s Ethics and Integrity Management Framework.

In compliance with the PSR of 2016 and the DPSA directives, all Senior Management Service (SMS) 8 members disclosed their financial interests, and the department maintained the achievement of 100 per cent throughout the financial year under review.
This was further cascaded to all designated employee categories and sections.

The department submitted all quarterly performance reports (QPRs) against predetermined objectives within the prescribed 30 days.

Internal processes and approvals have been streamlined to accommodate the need for Internal Audits to verify reported performance before submission to external oversight bodies.

The Executive Authority adhered to all invitations to appear before the Portfolio Committee on Communications.
In October 2021, Cabinet approved the revised 2019- 2024 MTSF.

This revision incorporated an indicator that measures the effectiveness of government communication to bridge the trust deficit between the government and the citizenry.

The MTSF targets on the Government Communication Policy necessitated a change to the GCIS Strategic Plan, which was finalised as part of the 2022/23 planning cycle.
The APP was developed, reviewed by the Department of Planning, Monitoring and Evaluation (DPME) and National Treasury and tabled in Parliament by the end of March 2022.

The 2022/23 APP demonstrates maturity in planning practice for the GCIS and better alignment with the Revised Framework on Strategic and Annual Performance Plans (APP) issued by the DPME in 2019.

The GCIS commenced the revision of its internal Planning and Performance Monitoring Framework.
5.3 Overview of Performance Highlights The mandate of the GCIS is enshrined in Section 195(g) of the Constitution of the Republic of South Africa of 1996.

The GCIS ensures that citizens are informed about the government’s policies, programmes and projects in a manner that enables informed decision-making to improve the quality of their lives.

This mandate is given effect through the GCIS’s outcome of an informed and empowered citizenry.
Adhering to this mandate, the department plays a pivotal role in securing a democratic society, building social cohesion and enabling economic transformation through information on access to opportunities.

9 Despite the unprecedented experience of COVID-19 and its impact on our economy and society, the GCIS remained resilient and ensured that it leads and coordinates government communication through the media, using its platforms and limited physical interactions.
The address by the President on key matters has become a prominent feature of the South African communication landscape.

Information dissemination and communication practice have evolved significantly over the last few years.

Digital platforms and social media have overtaken traditional means of communication such as print media.
The placement of opinion pieces, media statements and daily government messaging in various print, broadcast and social media platforms enhanced communication of government messages covering multiple topics on key government programmes and opportunities.

Despite these changes and owing to the history and make-up of South Africa, media remains a strategic key partner in advancing the mandate of the GCIS.
Whilst many of these engagements have been migrated to virtual platforms, the easing down of lockdown regulations has seen a return to face-to-face interaction and limited mass gatherings.

Between 1 April and 31 March 2022, thirty-five (35) media briefings were conducted to ensure that the public was informed about government decisions.

Nineteen (19) post-Cabinet media briefings were held to engage the media and journalists on Cabinet matters.
This demonstrated the GCIS’s commitment to delivering services to the citizens, irrespective of any circumstances that may bring about risks of non- delivery of services to the citizens.

During the unfortunate July 2021 unrest, government messaging was ramped up to restore a sense of calm and demonstrate a responsive government that handled the situation and responded to people’s needs.
Citizens were informed about the total cost of the damages to properties, the impact on the economy, the availability of food supplies, the impact on social services and most importantly, the consequences for people who had broken the law in any way during this period.

These messages gave the people hope that the government acted in the interest of the people, their safety, economy and social welfare.
While the GCIS is tasked to ensure that government messages are coherent, accurate and timeously delivered to citizens, the government continues to encounter the challenge of conflicting messages 10 and disseminating false information.

GCIS has a huge responsibility to ensure that there is accurate and effective Government communication.

Government communication is competing for attention with prominent voices and at times, alluring with falsehood and misinformation.
This is in the main perpetuated through social media platforms.

During this period, a concerted effort was directed towards ensuring relevance, accuracy and timeous of platforms such as SAnews and www.gov.za.

Daily updates were done to these online platforms and GCIS-managed social media accounts, primarily Facebook and Twitter.
Community engagements through the Provincial and Local Liaison (PLL) unit saw nearly 32 million South Africans accessing information either directly or indirectly through the work of the GCIS provincial and district offices.

The primary mode of interaction was community radio, with a total of 528 community radio programmes in the 2021/22 financial year.
The radio programmes were used to profile messaging and information on COVID-19, GBVF, ERRP, crime and corruption, job creation and service delivery interventions using localised messengers, including municipal leadership.

Overall, the organisational target of 400 radio products and services provided was overachieved by 75 per cent.

A total of 699 radio products and services were provided.
The overachievement builds on the gains of the 202/21 financial year where, due to the lockdown restrictions and a limit on gatherings, radio services proved a viable alternative to face-to-face interaction and an effective communication channel.
During the 2021 Local Government Elections (LGE) held on 1 November 2021, the GCIS increased government messages between October and November 2021, by educating and informing people about their rights, the meaning of democracy, and location of voting stations, processes of voting and subsequently, results of the elections.

11 Millions of South Africans turned up at voting stations across the country.
It was evident that democracy depends on the active participation of citizens, and voting remains the most tangible way for citizens to bring about change and renewal.

Vukuzenzele newspaper is the flagship publication of the GCIS.

For the period under review, 22 online editions of the community newspaper were published, and a total of 15,3 million copies were distributed.
The discrepancy between online editions and printed editions is part of exploring the transition towards digital platforms informed by the GSM and Census studies.

Vukuzenzele newspaper remains the most significant print circulation in South Africa and is also available in a Braille version.

The GCIS continues to promote the advertisement of government vacancies in Vuk’uzenzele newspaper as the publication is strongly slanted towards capacity-building and job creation.
Although the GCIS wishes to increase the number of printed copies of the newspaper, financial constraints remain a challenge.

The GCIS will continue to engage National Treasury for additional funds to increase the print run of the Vuk’uzenzele newspaper to reach even the most remote parts of the country.

5.4 Performance per programme The Department achieved 89 per cent performance (34 targets achieved out of 38 planned targets) for the 2021/22 financial year.
The Department spent 99.7 per cent of the allocated budget for the 2021/22 financial year.

Moreover, the Department received an unqualified audit opinion with a material finding for the 2021/22 financial year.

The increase in the annual appropriation from 2020/21 to 2021/22 is mainly due to the nett effect of a once-off allocation of R50 million for the COVID-19 communication campaign and reductions by the National Treasury in respect of the communication of employees and goods and services.
The department spent 99.7 per cent of its final appropriation in the 2021/22 financial year.
The variance of R2.426 million comprises R752 000 in CoE due to the attrition of staff and vacant posts; R713 000 in Goods and Services due to lesser recovery of self-financing expenditure in respect of the advertising of vacant positions in the Vuk’uzenzele newspaper, lower cost on Subsistence and Travelling, lower communication-related expenditure (telephones, data lines) and lower cost on operating payments; a saving of R58 000 in Transfers and Subsidies due to lesser payments in respect of leave gratification as 12 a result of resignations and retirement of former employees as well as lesser payments than projected in respect of TV licences; an underspending of R1.017 million under capital assets due to non-delivery of equipment from suppliers.
Theft and losses of R114 000 are funded from Goods and Services.

In the 2020/21 financial year, the department spent 98 per cent of its allocated budget and realised variance of R13 million (2 per cent).

Most of the variance related to CoE was due to vacant posts and staff attrition.

A detailed explanation of performance per programme is outlined herewith below: The Administration programme had about 3 targets and managed to achieve 100 per cent.
The Content Processing and Dissemination had a total of 23 targets with 83 per cent of the targets achieved.

The Intergovernmental Coordination and Stakeholder Management programme had 12 targets and managed to achieve 100 per cent.

Thus, there were 34 non-financial targets which were achieved.
13 120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00% PROGRAM PERFORMANCE 100,00% 100,00% 83,00% 17,00% 0,00% 0,00% Administration Content Processing and Dissemination Inter governamental Coor dinati on and Stak eholder Manageemnt Achieved Not Achieved Programme 1: Administration The purpose of this Programme is to provide overall management and support for the Department.

The Strategic Objective is to provide adequate and effective Corporate Services functions in pursuit of good governance.
Key achievements under this programme include: The GCIS compiled and submitted four QPRs in 2021/22 in line with the DPME's guidelines for the preparation of the QPRs (issued May 2021).

All four QPRs were finalised within 30 days of the end of the quarter and presented actual performance information as validated by Internal Audit.

The Annual Report for 2020/21 was completed and tabled in Parliament in September 2021.
All reports against the APP and the approved annual operational plans (per Branch) are compiled using the Organisational Performance Management System (OPMS).

The department managed to keep the vacancy rate below 10 per cent during the 2021/22 financial year and reduced the Top Management vacancy rate from 75 per cent in the 2020/21 financial year to 0 per cent in the 2021/22 financial year.
The turnover rate decreased from 6.09 per cent in the 2020/21 financial year to 5.9 per cent in the 2021/22 financial year.

The department designated a number of posts to promote representativity to enhance the achievement of Employment Equity (EE) targets.

This is achieved through targeted recruitment and partnership with institutions for persons with disabilities, youth organisations and institutions of higher learning.
Nine 14 (9) employees from designated groups were recruited during the reporting period.

The national target of 2 per cent was achieved at 3.16 per cent, exceeding the national target by 1.16 per cent.

Women's representation at the SMS level was achieved at 56 per cent.
It must be emphasised that the future GCIS will require a large capital budget to expedite digital transformation technologies and ensure that the department stays relevant, nimble and productive in the face of the 4IR regime and other shocks.

To expedite digitisation/digital transformation and guarantee the GCIS remains relevant, flexible and effective under the 4IR regime, a digitised GCIS requires a significant capital input of roughly R39,9 million during the MTEF period.
The procurement plan quarterly progress reports were presented to National Treasury within the time frame.

According to the GCIS manual B-BBEE figures, R250,155 million went to black-owned businesses, R76,278 million went to women-owned businesses, and R51, 693 million went to youth- owned companies out of total spending of R446, 774 million.

The rural economy received R12, 225 million, and the township economy received R32, 010 million, respectively.
After the year, 6 333 invoices to the value of R423,21 million out of the 6 607 invoices received were paid within 30 days, a rate of 95 per cent versus the aim of 100 per cent.

The GCIS IT Infrastructure was available in line with the required service levels maintained by the State Information Technology Agency.

However, some incidents of downtime were experienced due to load shedding and vandalism.

Some end-of-life servers and computers were also replaced during this period.
The IM&T unit also ensured that all software licences were renewed, including the Microsoft Enterprise Agreement, security software, virtual meeting tools and the electronic forms design and workflow tool.

Programme 2: Content Processing and Dissemination This Programme aims to provide strategic leadership in government communication to ensure coherence, coordination, consistency, quality, impact and responsiveness of government communication.
The Strategic Objectives are (i) to produce government communication products and provide services to grow the share of voice of government messages in the public 15 arena; (ii) to provide strategic leadership and support in government communication through public opinion research and analysis of media coverage to understand the communication environment and inform government messages; and (iii) to provide efficient and effective communication services.
Key achievements under this programme include: The Branch achieved annual targets under challenging conditions, which included increased workloads as the content focus broadened, financial constraints which threatened to morph from “more with less” to “less with less”, and shifts in staff levels as lockdown regulations governed office attendance.

Coverage from the government news agency www.


sanews.gov.za has been strategically focused on disseminating information related to the COVID-19 pandemic during the reporting period, keeping the public informed every step of the way on developments related to the pandemic.

Vuk’uzenzele is a government newspaper that focuses on communicating government programmes and policies, including socio-economic opportunities created by government programmes and how to access these opportunities.
The newspaper is partly published in all official languages.

It is a free publication published twice a month on the 1st and the 15th of each month, with the exception of December and January, which is published as one combined edition.

It now carries paid-for public sector vacancies, tenders and notices.
The newspaper is also published in Braille for visually impaired groups and individuals, with the web version of the newspaper available through the website catering to those with access to the internet.

The newspaper can also be accessed by downloading the VukApp on a mobile phone.

The GCIS has adopted scientific communication methods to ensure that government messages resonate with South Africans.
Research, media analysis, monitoring, and evaluation are part of a suite of tools used to inform communication strategies and campaigns.

This includes providing content analysis reports for The Presidency, which has been at the forefront of communicating on the global pandemic.

During the period under review, the GCIS’s Research unit conducted a nationally representative quantitative research study in support of the COVID-19 integrated communication efforts.
The study was conducted from 28 May to 30 June 2021 amongst 2 000 South Africans across all nine provinces.

16 Findings from the research enabled the National COVID-19 Communication Committee (NCCC) to adopt the COVID-19 communication strategy based on identified needs and communication gaps of South Africans.
During the period under review, the Directorate: of Media Production continued to provide critical audio-visual support to The Presidency by documenting the work done by the two political principals per the Programme of Action (PoA).

In addition, the unit was instrumental in extending the efforts by The Department of Health in the fight against COVID-19 through the implementation of a vaccine roll- out campaign encouraging citizens to get vaccinated.
48 clients approved 311 media-buying campaigns for various programmes and services in the 2021/22 financial year.

The cost of advertising was R338 092 669,96, of which clients paid R269 329 596,69 and benefitted from R68 763 073,27 savings (average saving achieved was 20 per cent).

Out of the 311 approved campaigns, 265 were implemented (85 per cent), 23 ongoing campaigns (7 per cent), 16 approved campaigns (5%) and six campaigns were cancelled (2 per cent).
The campaigns focused on the government’s response to COVID-19 and the benefits of getting vaccinated and various other initiatives and programmes/projects that promoted the ERRP, the fight against GBVF, recruitment and various other awareness campaigns focusing on educating citizens about government programmes.
Through the support given by Entity Oversight in the form of holding QPR sessions, DG/CEO engagements, CFO meetings and company secretaries’ meetings, the department seeks to ensure that there is governance and accountability; that boards are increasingly accountable for the financial and operational performance and repositioning of SOEs through governance agreements.

The chief directorate has been monitoring the implementation of marketing, branding, and community media plans.
17 The engagements included holding QPR sessions, DG/CEO engagements, CFO meetings and company secretaries’ meetings.

The purpose of these forums was to strengthen the oversight of the entities.

These forums assisted in regulating the relationship between the Executive Authority and the entities, in particular outlining the principles and structures of how the Minister exercises oversight over the entities and how the entities comply with governance prescripts.
During the 2021/22 financial year, the Minister in The Presidency appointed and launched the inaugural B-BBEE MAC Sector Council.

The primary function of the council is to ensure that transformation in the MAC sector (including JSE- listed companies) is promoted, monitored and reported through the Annual Transformation Report tabled before the Minister in The Presidency, the Department of Trade, Industry and Competition (the DTIC), the B-BBEE Commission and the Presidential Advisory Commission on B-BBEE.
Programme 3: Intergovernmental Coordination and Stakeholder Management This programme aims to provide strategic leadership in government communication to ensure coherence, coordination, consistency, quality, impact and responsiveness of government communication.

Key achievements under this programme include: The chief directorate managed to sustain weekly proactive media engagement activities focused on the thematic areas of GBVF, ERRP, anti-corruption and youth opportunities.
In the period under review, intensive media engagement focused on preventing the spread of the COVID-19 virus and promoting the uptake of vaccines as the best preventative measure to fight the virus.

Members of the media across both commercial and community sectors, as well as broadcast, print and online, made an immeasurable contribution to raising awareness of Vooma Vaccination weekends and covering numerous events of government and social partners, including webinars, in this national effort.
The Department established a solid partnership with the South African National Editors Forum (SANEF) and the National Press Club to promote COVID-19 awareness, ensure access for the media fraternity to vaccination and above all promote the importance of vaccination through various media channels.

These included sustained and regular media briefings as well as themed Webinars which also attracted coverage from across the continent.
18 The Department coordinated initially daily but thereafter thrice weekly of the Communications Command Council (CCC on COVID-19) of all government communicators nationally and provincially reporting to the NCCC on the implementation of the communication strategy to fight COVID-19 and promote vaccination.

Furthermore, prepared the development of all Communication Work stream reports to the Inter-Ministerial Committee (IMC) on Vaccination chaired by the Deputy President of the Republic Mr David Mabuza.
The Department provided ongoing media liaison services to the government by providing government information; establishing, strengthening and maintaining working relationships with foreign media and independent media; and establishing relations with South African missions and parliamentary stakeholders with the view of disseminating government information and key targeted messages.
The department has successfully implemented a joint project to host the historic SoNA 2022 at the Cape Town City Hall following the devastating fire in Parliament.

The Department led the development of a comprehensive local Government Election (LGE) strategy and monitored its implementation thus resulting in the holding of a peaceful, free, fair and democratic LGE.
GCIS has also coordinated and played an instrumental role in ensuring that issues of GBVF, the coordination of National Days for Nation Building and Social Cohesion were always on the radar.

The Directorate has also strengthened the management of issues that have reputational implications on government work.

This was achieved by mobilising all communicators in the government communication system.
Through the adoption of online communication platforms such as Zoom or MS Teams daily, there is a significant increase in participation where robust discussions unfold.

Integration of social media platforms to media engagement has increased reach as the Domestic Media Engagement directorate has live-streamed the majority of webinars and hosted Twitter spaces to expand the audience's reach of government messages.
5.5 Overview of Financial Performance Information The GCIS was initially allocated R749.7 million for the 2021/22 financial year.

During the 2021 Adjusted Estimates of National Expenditure (AENE), the appropriation was increased from R7.7 million to R757.4 million, with additional funds (R6.9 million) allocated for the improvement of 19 conditions of service on levels 1-12 as well as a further R800 000 as self- financing expenditure in respect of the sale of advertising space in the Vuk’uzenzele newspaper.
Of the adjusted allocated budget, the GCIS spent R755 million (99.7 per cent) by 31 March 2022.

An underspending of around R2.426 million (0.3 per cent) was realised.

The underspending comprises of: 1.

R752 000 in Compensation of Employees (CoE) due to the attrition of staff and vacant posts; 2.
R713 000 in Goods and Services due to lesser recovery of self-financing expenditure in respect of the advertising of vacant posts in the Vuk’uzenzele newspaper; lower cost on Subsistence and Travelling; lower communication-related expenditure (telephones, data lines) and lower cost on operating payments; R58 000 in Transfers and Subsidies due to lesser payments in respect of leave gratification as a result of resignations and retirement of former employees, as well as lesser payments than projected in respect of television (TV) licences; R1.017 million under capital assets due to non-delivery of equipment by suppliers; Theft and losses of R114 000 is funded from Goods and Services.
The GCIS continues to adhere to sound financial management principles stipulated in the PFMA of 1999 and National Treasury Regulations.

To ensure that the GCIS maintains sound financial governance that is client-focused and responsive to the overall operating environment, the financial policies are reviewed at least every second year to ensure that they comply with the PFMA of 1999 and National Treasury Instructions and prescripts.

When required, updates are made from time to time within the two years.
Financial policies and related amendments are made available to all GCIS staff.

In between, financial circulars are issued to staff from time to time as guided by the National Treasury and the Department of Public Service and Administration (DPSA).
20 5.6 Program Expenditure The spending trend per programme is as follows: Programme Name 2021/22 Final Final % Variance Variance Budget Expenditure (Underspending) (Underspending) Administration R’000 R’000 190 122 189 482 Content Processing and 441 387 440 069 Dissemination % 99,7% 99,7% R’000 640 1 318 Intergovernmental Coordination 125 921 125 453 99,6% 468 and Stakeholders Management Total 757 430 755 004 99,7% 2 426 Part of the budget which was not spent was due to the non-delivery of the computers because of the delays as they were being shipped from overseas.
There was also part for the money which could not be spent due to lack of traveling during the pandemic.

The Department continues to adhere to sound financial management principles as stipulated in the PFMA of 1999 and National Treasury Regulations.
To ensure that the Department maintains sound financial governance that is client-focused and responsive to the overall operating environment, the financial policies are reviewed at least every second year to ensure that they comply with the PFMA and National Treasury instructions and prescripts.

5.7 AGSA Report According to AGSA, GCIS regressed in terms of material non-compliance in SCM, which affected the audit report (Extension and expansion of panels of service providers).
As confirmed by National Treasury, management should have followed a competitive bidding process.

AGSA indicated that management should adhere to SCM principles and processes, a good review of SCM processes and proper recording keeping to ensure documents are easily accessible and available when requested.

GCIS had set 38 annual targets, of which 34 (89 per cent) targets were achieved.
The programme's scope was programme 2: Content Processing 21 and Dissemination, of which (19/23) 83 per cent of the planned targets were achieved or over- achieved.

No material findings were identified.

5.8 MDDA The Agency was set up in terms of the MDDA Act of 2002 to enable historically disadvantaged communities and individuals to access the media.
The mandate of the agency is to encourage access to media by Historically Diminished Groups as well as by historically diminished indigenous language and cultural groups; encourage the development of human resources and training and capacity building, within the media industry, especially amongst historically disadvantaged groups; encourage channelling of resources to the community and small commercial media sector, and raise awareness about media development and diversity issues and support initiatives which promote literacy and a culture of reading.
The enabling legislative environment and the positioning of the Agency in the Ministry in the Presidency have strengthened the relevance of its value proposition.

The new democratic South Africa recognises the urgent and critical need for transforming the media environment based on the key principle of freedom of expression, a right enshrined in our new Constitution.
In addition, media diversity and the invaluable role of the media in ensuring access to information were, from the start, cornerstones of our democracy.

The importance of community media cannot be underestimated.

Though they usually reach a smaller audience/readership, their capacity to offer a targeted platform for under-represented groups is a valuable tool for social participation.
Despite all the challenges the community media sector faces, civil society, government, and stakeholder groups still see the need to build a thriving community and small commercial media sector.

5.8.1 Performance Highlights The MDDA reports against the Annual Performance Plan of 2021/2022 as tabled in Parliament on 24 March 2021.

The Annual Performance Plan was developed to effect the MDDA Five- 22 Year Strategic Plan for 2020/2021 - 2024/2025, which was tabled on 18 March 2020.
The Strategic Plan and Annual Performance Plan have been developed in terms of the Revised Framework for Strategic Plans & Annual Performance Plans as per National Treasury Instruction No 5 of 2019/2020.

The 2021/2022 MDDA Annual Performance Plan has five programmes, with a total of twenty-two output indicators.
There following are programmes as part of the mandate of the entity: • Programme 1 - Governance and Administration; • Programme 2 - Grant and Seed Funding; • Programme 3 - Partnerships, Public Awareness and Advocacy; • Programme 4 - Capacity Building and Sector Development; and • Programme 5 - Innovation, Research and Development.
The graph below is the graphical highlights the performance of the entity for the year under review: The MDDA achieved the targets for twenty-one (95 per cent) of the twenty-two output indicators included in its Annual Performance Plan for 2021/2022, with one target not achieved.

The output indicator that was not achieved fell under.
Programme 5 - Innovation, Research and Development - Output Indicator No 21: Number of Research projects funded on key trends/developments impacting the community media sector.

There was a procurement delay which resulted in the project starting late.

The unit met with Redflank on the 24th of 23 March 2022, and after that, the service provider commenced with a mapping exercise and engagements with stakeholders.

Currently, the service provider is preparing data collection instruments.
The unit requested the service provider to expedite data collection and assign more human resources for this assignment to complete the project in time.

This project will be achieved during the 2022-23 financial year.
5.8.2 Service Delivery Environment The Strategic Plan of the MDDA is informed by the following: • The socio-political and economic environment prevailing in South Africa • The National Development Plan (NDP) and macro environment • The community media sector and the broader media environment in the print, broadcast, and digital platforms • Relevant legislation: direct and indirect A Glass Ceilings study in 2018, jointly conducted by Gender Links and SANEF and supported by the MDDA, highlights that inequality and inequity persist while the media industry is changing with more women in senior roles.
While South Africa does boast notable media exceptions, it cannot be denied that women are still under-represented in the media, both at senior levels, from ownership and Board level to station management and editors, and in the newsroom.

Supporting women-owned and managed community media projects must be a focus area of the MDDA in delivering its mandate.
The COVID-19 pandemic brought digital inequality into stark relief, highlighting the urgency with which digital inequality needs to be addressed to improve economic participation by the majority of South Africans (especially in rural areas) and prepare the country for the next inevitable disaster or pandemic.

South Africa still has an urban-rural divide on media consumption, particularly as many people remain offline due to high data costs.
A current key challenge for the MDDA’s community and small commercial media is how to harness the advantages of both the digital era and, going forward, 4IR and how to lessen the impact of the digital dividend on communities.

The MDDA’s role is vital before, during, and after migration 24 to ensure that community media’s interests are identified, fought for, and maintained.
This means that traditional forms of community media (print and broadcast) need more support in an ever-changing landscape that includes stiff competition from online media, including social media.

But online media is not the all-encompassing panacea for exclusion from the information.

In the period in review, the economic environment was characterised by low levels of GDP growth.

This was further exacerbated by the COVID-19 pandemic and its devastating effect on all economic sectors.
A lack of economic growth impacted the community media revenue as some of its major customers were affected by a decline in sales revenue and the need to cut costs and retrenchment a current reality.

The MDDA’s role is to assist the community media sector in finding more affordable means of broadcasting/publishing by, for example, moving to self-transmission or digital platforms.
The NDP Five Year Implementation Plan for the priorities outlined in the Electoral Mandate targets a just transition to a low carbon economy and reducing climate change costs to the GDP to less than 5 per cent by 2024; reduced vulnerability of key sectors to climate change; and reduction of total greenhouse gas (GHG) emissions in South Africa.
The MDDA has a major role in promoting and supporting these global and national initiatives in its messages and technologies and those of its beneficiaries, promoting recyclable and environmentally friendly technologies and discouraging unfriendly environmental practices.
The Universal Declaration of Human Rights provides a fundamental guarantee of the right to freedom of expression, which encompasses the freedom of the media, while, at the national level, the South African Constitution (1996) represents some of the most progressive modern constitutional thinking on media freedom.

However, for a truly enabling environment to be provided in which community-based media can flourish, other statutory instruments are required.
The MDDA, therefore, has a vital role in ensuring that such statutory instruments are 25 passed, for example regulating the 30 per cent advertising spent by Government on community- based media and providing input into regulations for digital radio and online media in general.

The MDDA expected its beneficiary projects to adhere to the Press Code and includes it as a focus area in its capacity-building and training initiatives.
The advent of social media has also brought about the threat of cyberbullying and, acutely felt by women, cyber misogyny.

While media literacy has been a focus area of the MDDA in the past, digital media literacy is a growing concern.

The MDDA and the community-based media sector must play a more significant role in educating and sharing knowledge with communities on the ethics of social media.
5.8.4 Financial Performance The Agency reported against the APP of 2021/2022 as tabled in Parliament on 12 May 2021.

The APP was developed to effect the Agency’s 5-Year Strategic Plan for 2021/2022 - 2024/2025, which was also tabled on 18 March 2020.

Both the Strategic Plan and APP have been developed in terms of the Revised Framework for Strategic Plans & Annual Performance Plans as per National Treasury Instruction No 5 of 2019/2020.
The table below describes the revenue versus expenditure patterns of the Agency during the financial year under review.
Financial Performance 2021/22 And the MTEF Budget MDDA 2022/23 to 2025/26 Budget Summary Description Revenue Broadcast Funders Grants income Other Income: Interest Original Budget 2022/23 102 857 491 56 279 701 42 557 674 4 020 116 Audited 2021/22 104 690 184 64 641 480 36 175 260 3 873 444 - - Expenditure Grant Expenditure Employee Costs MDDA Board costs Administration Costs Adjustedl Budget 2022/23 129 580 643 62 917 508 62 643 019 4 020 116 139 577 390 87 516 773 34 628 410 1 755 623 15 676 583 Budgeted 2023/24 Projected 2024/25 Projected 2025/ Capital Expenditure Capital Assets Surplus / (Defuicit) Notes: Depreciation not budgeted from 2021/22.
Assets replacement has been provided for - - 832 335 832 335 14 137 177 300 492 300 492 0 300 492 300 492 9 996 747 370 000 370 000 - 300 492 300 492 - 200 000 200 000 - 26 The 2021/22 funding was sourced as follows: (i) broadcasters funded 58 per cent of the budget; government grant was 38 per cent; and interest on investments of 4 per cent.

There was a rollover of R14 million which was approved by the National Treasury and therefore the entity managed to break even.
5.8.5 Auditor-General MDDA attained an unqualified audit opinion in the 2021/22 financial year.

Material findings were on: Noncompliance with laws and regulations.

It's currently in contestation with the office of the Auditor General.

The Audit Improvement Plan is in place to correct the audit findings and improve internal controls.
The AGSA expressed that the financial statements submitted for auditing were not fully prepared in accordance with the prescribed financial reporting framework, as required by section 55(1)(a) and (b) of the PFMA.

Material misstatements of current liabilities and revenue from non-exchange identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified audit opinion.
AGSA further noted that management did not implement proper record-keeping promptly to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting.

Management did not prepare regular, accurate and complete financial and performance reports supported and evidenced by reliable information.

The agency had 16 planned targets and managed to achieve 95 per cent (16) of the annual targets for its key performance indicators for 2021/22.
This is an increase of 6 per cent over the previous year and the best performance of the Agency over the past seven financial years.

The remaining target of the sustainability model could not be completed due to delays in procurement.

The Agency achieved a clean audit; see the chart below: 27 6.

Standing Committee on Appropriations (SCOA) The Department did not appear before SCOA.

7.

Standing Committee on Public Accounts (SCOPA) The Department did not appear before SCOPA.

8.
Committee observations 8.1 The Department The Committee noted and commended the Department: 1. it commended the performance of the Department for the good work done in the period under review; 2. the Department achieved an 89 per cent performance which amounts to 34 targets achieved out of 38 planned targets, and spent 99.7 per cent of the allocated budget for the 2021/22 financial year; 3. the Department received an unqualified audit opinion with a material finding; 4. the Department played a key role during the COVID-19 pandemic, which must be commended.
28 5.

6. the Department included a total increase of women employed in the Department; the vacancy rate was at 6.7 per cent, and that the Department had reduced the Top Management vacancy rate from 75 per cent in the 2020/21 financial year to 0 per cent in the 2021/22 financial year; 7. women’s representation at the SMS level was achieved at 56 per cent; 8.
9. the Department has an ageing IT infrastructure which affects the performance of the entity; its appreciation that the Department won an award for vaccine information and commended the Department for playing a key role during the beginning of COVID-19; 10. that it required clarity on the position of non-operational equipment in respect of its studios within Parliament precincts; 11. it is expected that the Department achieve a clean audit in the next year; and 12. that the Department noted its concern in respect of the resources and funding and requested that the Committee assist in the process of ensuring that funding was obtained.
8.2 MDDA The Committee noted and commended the Agency for the following: 1. it commended the MDDA for the presentation and its performance; 2. the MDDA attained an unqualified audit in the financial year under review; 3. the material findings were on non-compliance with how the EDF money came from the competition commission which was allocated to MDDA as an implementation agency; 4. it congratulated MDDA for celebrating 20 years of operation and noted that the entity should ensure they its work does not become obsolete; 5. that it was also vital for the entity to move with the times and become relevant within the market; 6. it required clarity in respect of the role of Sentech and MDDA to aid in the community radio payment of fees; 7. its concern that approximately R33 million was spent on overhead costs for employees; and 8. that there was a need to ensure that community radio stations become self-sustainable.
9.
Recommendations In relation to the Department and MDDA, the Committee resolved that the Minister should: 29 1. ensure that the internal controls are in place to meet the requirements as laid out by the Auditor General; 2. ensure that the Department IT infrastructure is upgraded for accurate record-keeping and ensure effective communication with the rest of the citizens; 3. ensure that the Draft Media Development and Diversity Agency (MDDA) Amendment Bill is finalised; 4. ensure that processes are in place for radio stations to become self-sustainable; 5. ensure that the outstanding transmission cost between Sentech and Community Radio Stations is addressed; 6. ensure that the Department and MDDA comply with all findings made by the Auditor General; 7. that the Committee ensures that the Department receives funding assistance to prevent the collapse of the Department; and 8. that members of the Committee take the issue of funding to their caucuses and request assistance for the Department.
Report to be Considered.

30 2.

REPORT OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT ON THE FIRST QUARTER PERFORMANCE AND EXPENDITURE REPORT FOR 2022/23 OF THE DEPARTMENT OF SOCIAL DEVELOPMENT (DSD), DATED 19 OCTOBER 2022 1.
INTRODUCTION The Portfolio Committee on Social Development (hereinafter referred to as the Committee) having examined the Fourth Quarter Performance and Expenditure Report for 2021/22 of the Department of Social Development (hereinafter referred to as Department) on 21 September 2022, reports as follows: 2.
MANDATE OF THE COMMITTEE The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising and overseeing the department’s action.

It is to conduct oversight that is driven by the ideal of realising a better quality of life for all people of South Africa.
The Committee is also required to facilitate public participation, monitoring and oversight over the legislative processes relating to social development.

In doing this, it also confers with relevant governmental and civil society organs on social development matters.

The Committee also enhances and develops the capacity of its members to exercise effective oversight over the Executive Authority in social development.
It monitors whether the Department of Social Development fulfils its mandate according to priorities.

It also has a mandate to perform the following: • Considers legislation referred to it; 1 31 • Conducts oversight of any organ (s) of the state and constitutional institution(s) falling within its portfolio; • Facilitates appointment of candidates to entities; • Considers international agreements; and • Considers budget of department and entities falling within its portfolio.
For the current medium term (2019 – 2024), the Committee’s oversight focuses on the department and its entities performance with regard to the implementation of the priorities set in the National Development Plan and in the Medium Term Strategic Framework.

3.
3.

THE MANDATE OF THE DEPARTMENT The department derives its mandate from several pieces of legislation and policies, including the White Paper for Social Welfare (1997) and the Population Policy (1998), which sets out the principles, guidelines, policies and programmes for developmental social welfare in South Africa.

The White Paper for Social Welfare has provided the foundation for social welfare in the post-1994 era.
The Constitutional mandate of the department is to provide sector-wide national leadership in social development by developing and implementing programmes for the eradication of poverty and social protection and development amongst the poorest of the poor and most vulnerable and marginalized.
3.1 Policy priorities for the medium term • Priority 1: A Capable, Ethical and Developmental State • Priority 2: Economic Transformation and Job Creation • Priority 3: Education, skills and Health • Priority 4: Consolidating Integration, Human Settlement and Local Government 2 32 • Priority 5: Spatial Integration, Human Settlement and Local Government • Priority 6: Social Cohesion and Safe Communities • Priority 7: A better Africa and World 3.2 National Development Plan (NDP) The abovementioned priorities are in line with the (NDP) vision 2030, which inter alia promotes social protection and is defined by: • Protective measures to save lives and reduce levels of deprivation; • Preventative measures which help people avoid falling deeper into poverty and reduce their vulnerability; • Promotive measures which enhance the capabilities of individual communities and institutions; • Transformative measures which tackle inequities through changes in policies, laws and budgets; and • Developmental and generative measures, which increase the poor’s consumption by promoting local economic development.
3.3 Key strategic themes emerged from the State of the Nation Address (SONA) 2022, which have a bearing on the Department: The following key strategic themes emerged from SONA 2022, which have a bearing on social services sector: • Ending gender-based violence (GBV): government is intensifying the fight against gender-based violence and femicide through implementation of the National Strategic Plan on gender-based violence and femicide (GBVF) and other measures to promote the empowerment of women.
For an example, February 2022, the President signed into law three new pieces of legislation, which strengthened the criminal justice system, promoting accountability across the state and supporting survivors.

The implementation of this legislation will go a long 3 33 way to ensuring that cases are successfully prosecuted, that survivors are protected and that there are more effective deterrents in place.
The President noted that the fight against gender-based violence will never be won unless, the society mobilises all formations and all citizens behind a sustained programme of social action.

• Extension of the special covid-19 grant: since the onset of covid-19, the social relief of distress grant has provided support to more than 10 million unemployed people who were most vulnerable to the impact of the pandemic.
As much as it has had a substantial impact, government must recognise that the country faces extreme fiscal constraints.

A fiscal crisis would hurt the poor worst of all through the deterioration of the basic services on which they rely.

In this regard, the President announced that the period for special covid-19 grant would be extended for one further year, to the end of March 2023.

This was because of the proven benefits of the grant during the covid-19 health pandemic period.
• A need to improve payment systems and sustainability of R350 grant: the President assured the country that any future support must pass the test of affordability, and must not come at the expense of basic services or at the risk of unsustainable spending.

During this time, government will engage in broad consultations and detailed technical work to identify the best options to replace this grant.
• Job Creation - Expanding Public and Private Employment: it is the responsibility of the private sector to create jobs and government needs to provide a conducive environment for this to happen.

As government works to grow the economy and create jobs, SONA 2022 assured the nation that government would expand support to poor families to ensure that no person in this country has to endure the pain and indignity of hunger.
The President said that, the Social Employment Fund will create a further 50,000 work opportunities using the capability of organisations beyond government, in areas such as early childhood development, and tackling gender-based violence among others.

In addition to expanding public employment, government is providing support to young people to prepare them for work and link them to opportunities.
SONA 2022 made a 4 34 comment that the social economy, including early childhood development, has significant potential not only to create jobs, but also to provide vital services that communities need.

4.

OVERALL ASSESSMENT OF THE FINANCIAL PERFORMANCE The financial performance reported below was sourced both from the Department’s presentation to the Committee and from the National Treasury Fourth Quarter Expenditure Report.
Figure 1: Adjusted budget appropriation for 2021/22 Overall allocation: R257.0 billion Programme 1: R423.5 million Programme 2: R248.

3 billion Programme 3: R7.6 billion Programme 4: R309.1 million Programme 5: R359.6 million The Department received an overall allocation of R257.0 billion for the 20212/2022 financial year, which was an increase from 234.10 billion allocated for the 2021/22 financial year.
A total of R257.0 billion of the transfers and subsidies expenditure (99.2 percent) was earmarked for households for social grants.

About R7.6 billion was allocated for transfer to the South African Social Security Agency (SASSA) for administration of social grants.

This was a decrease from R8 billion allocated in 5 35 2021/2022 financial year.

A total of 219.3 million (R246.0 million in 2021/2022) was allocated to the National Development Agency (NDA).
As shown by Table 1 below, by the end of the quarter under review, the Department had spent R54.5 billion.

This is about R9.4 billion lower than projected expenditure of R63.9 billion as at the end of the first quarter of 2022/23 financial year.
Underspending was recorded in Programme 2 mainly due to the delayed payment of the Social Relief of Distress (SRD R350 grant) as a result of re-registration of beneficiaries and finalisation of contracts with banks for means testing in line with the new regulations.

The SRD grant payments were re-initiated in June 2022 and are continuing.

It was also recorded in Programme 3 due to the delayed establishment of the establishment of the Inspectorate of Social Assistance.
Table 1: Programme Expenditure as at 31 June 2022 As shown in Figure 1 below, at the end of the first quarter, expenditure against the available budget for the programmes was as follows: 6 36 • Programme 1: spent R121.2 million of the projected budget of R88.2 million as at the end of the first quarter of 2022/23 financial year.

This represented an over- expenditure of R33 million.
This was due to telecommunications for the toll-free hotline for the special COVID-19 SRD grant, estimated at a cost of R3 million per month.

This also resulted in over expenditure at the end of the 2021/2022 financial year.

The Department is expecting to resolve this matter with SASSA but not timeframe has been given.

It was however, reported that SASSA is unable to monitor, account for, or settle the costs of the line within the current arrangement.
• Programme 2: spent R52.3 billion out of the projected budget of R61.7 billion as at the first quarter of 2022/23 financial year.

This represented an under-spending of R9.4 billion or 15.3 percent.

As reported earlier in the report, under-spending related to delayed payment of the SRD grant.

The Department’s budget for 2022/2023 had an additional budget allocation of R44 billion for the payment of the SRD grant.
• Programme 3: spent R1.883 billion of the projected budget of R1.894 billion as at the end of the first quarter of 2022/23 financial year.

This represented an under- expenditure of R11.1 million or 0.6 percent due to the delay in establishing the Inspectorate for Social Assistance, as reported earlier in the report.

• Programme 4: spent R50.8 million out of the projected budget of R54.4 million as at the end of the first quarter of 2022/23 financial year.
This represented an under-expenditure of R3.6 million or 6.6 percent due to delayed transfers to non-profit organisations.

• Programme 5: spent R160.6 million of the projected budget of R160.6 million.

No under or over expenditure incurred in this programme during the first quarter of 2022/23 financial year.
7 37 Figure 1: Actual spending of what was projected 137,4% 133,7% 96,0% 84,7% 99,6% 99,4% 93,4% 91,9% 100,0% 99,5% 160,0% 140,0% 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% Programme 1 Programme 2 Programme 3 Programme 4 Programme 5 5.

OVERVIEW OF NON-FINANNCIAL PERFORMANCE 2021/22 2022/23 This section focuses on Department’s non-financial performance for the 1st quarter of 2022/23 financial year using the 2022/23 Annual Performance Plan (APP) as a benchmark.
As can be seen from Figure 2 below, for the 1st quarter, the department set itself of total of 60 targets and managed to achieve 48 (80%).

A total of 12 (20%) of set targets were not achieved.

Figure 2: Overall DSD target performance of the 1st quarter of 2022/2023 8 38 Figure 3 below represents a comparison of quarterly performance for the 1st quarters of 2021/22 and 2022/23 financial years.
Figure 3: First quarter target performance for 2021/2022 and 2022/2023 The 2022/23 first quarter performance shows an improvement year-on-year as compared to performance in the same period during the previous year, where only 77 percent of the set targets were achieved.

5.1 Target performance per programme 9 39 Table 2: Achievement of targets per programme: Quarter 1 of 2022/2023 Programme No.

of targets No.
of targets No.

of targets Total targets % achieved not achieved Performance Programme 1 Programme 2 Programme 3 Programme 4 Programme 5 Total targets 7 0 8 18 15 48 6 1 0 2 3 12 13 1 8 20 18 60 54% 0% 100% 90% 83% 80% As shown in Table 2, Programme 1 had the lowest achievement of targets, respectively, compared to other programmes.
The important targets that were achieved across programmes included the following: • Entity oversight: the quarterly implementation of the entity and oversight framework target was achieved.

This included submission of the Entity Agreements to all entities for comments and inputs, 3rd quarter reports for SASSA and the NDA were analysed and submitted to the Minister, held meetings to finalise APPs and performance reviews for the 4th quarter.
• Stakeholder and Donor Management Strategy: a departmental profile on partnerships was updated.

The database gives a visual profile of all the partnerships, indicating the total number of partnerships currently held by the Department and the types of partnership, which ranges from academia to the multilateral.

• Information Management Systems and Technology: relevant stakeholder on the integration and development of (NISPIS) were consulted.
These included the Chief Offices/Government Information Technology Officers.

• Human Capital Management: the Government Wide Strategy on the Employment of Social Professionals was consulted with sector departments, entities and South African Council for Social Service Professionals (SACSSP).

A joint bid was 10 40 developed to request funding to National Treasury for sector strategy towards employment of social service professionals.
• Policy on integrating children’s grant beneficiaries with government services: was consulted with Data Integration Technical Stakeholder team in May 2022, social grants beneficiaries in Gauteng in Mamelodi in June 2022, the National Child Care and Protection Forum (NCCPF) in June 2022 and the Department of Home Affairs (DHA) in June 2022.
• The Policy on Maternal Support for Vulnerable Pregnant Women and Children: was consulted with above mentioned stakeholders as well as Grow Great, an NPO dealing with malnutrition and stunting of children, in June 2022.

• Policy on Voluntary Cover for Retirement and Risk Benefits for Atypical and Informal Sector Workers: the draft Policy was updated and was consulted with the Women in Informal Employment: Globalizing and Organizing (WIEGO) and the UN Women.
• The Social Security Bill: was consulted with Wits University and the International Labour Organization (ILO) and the Technical review team on the Green Paper on Comprehensive Social Security.

Editing panel members were appointed.

• Integrated School Health Programme Implementation Plan (ISHP): was developed to curb teenage pregnancy.

The Tool assists to monitor the performance of different stakeholders against achievement of commitments set in the ISHP targets.
• The Sinovuyo Teens Parenting Programme: was developed which seeks to improve caregiver-teen relationship through active social learning, improving caregiver mental health through social support and improving caregiver-teen communication about risky situations for teens in the community.

The Tool assists to track the impact of the programme in provinces and identify gaps for further improvements.

• Foster care: 126 Social Workers were capacitated on the Adoption Policy Framework and Strategy.
Capacitation of social workers aims to provide adoption services in order to ensure that the adoption services are accessible to people who do not have means.

A quarterly report system on the implementation of the programme of action on foster care was developed.

11 41 • Draft National Community Development Policy: was updated.
The Policy seeks to clarify roles of key stakeholders and institutional mechanism for effective and efficient delivery of community development services towards building vibrant, equitable, cohesive and sustainable communities.

• Stakeholder Capacity Building Implementation Plan: was developed to implement the NPO Mentorship Model.

Similarly, a capacity building manual was developed for provinces on the implementation of the DSD Sector Funding Policy.
The ultimate implementation of both the Policy and the Model will contribute towards improving relations and efficiency in the funding and delivery of social services within the NPO sector Among the targets not achieved, the Department did not achieve the following targets: • Monitoring and Evaluation (M&E): the Electronic M&E System for the Social Development Sector was not implemented in three (3) provinces as planned.
• Legal Service: the quarterly target to Consolidate Public Comments and make inputs into the NPO Bill was not achieved.

• Children’s Amendment Bill: the quarterly target to publish the Draft Regulations on the Bill in the Government gazette for public comments was not achieved.

The Regulations were developed and the draft was being consulted with relevant stakeholders.

The Regulations cannot be published in the gazette until the Act has been passed into law.
This implies that the APP target was incorrect.

• Draft SASSA Amendment Bill and Draft Social Development Bill: the quarterly targets to consult relevant stakeholders on the Bill were not achieved.

The Draft Bills were only screened and assessed in preparation for consultation with stakeholders.

• Draft NDA Amendment Bill: the quarterly target to consult on the concept document towards the development of the Bill was not achieved.
DSD reported that the reported performance showed that consultation on the development of the 12 42 NDA Bill were conducted and continuing but there was no evidence to support the reported performance.

• Draft Policy on Prevention of and Treatment for Substance Use Disorders: the quarterly target to finalise the SEIAS application processes for the draft Policy on Prevention of and Treatment for Substance Use Disorders was not achieved.

No SEIAS certificate was obtained.

6.


COMMITTEE DELIBERATIONS AND OBSERVATIONS • Development of monitoring tools on the implementation of the Integrated School Health Programme, Sinovuyo Teen Parent Digital Programme and the Family Preservation Programme: the Committee wanted to know the reason monitoring tools were only planned to be developed during the first quarter after the programmes had already been developed.
The Department explained that the tools are mainly for operational purposes to monitor the implementation of the programmes so as to identify challenges and respond accordingly.
• NPO registration, funding and information management: the Committee raised a number of issues relating to tracking of NPOs for compliance and funding by different provincial departments, whether the Department has the same position as that of the Gauteng DSD to insource service delivery than rely on NPOs, steps put in place to ensure NPOs compliance, whether non-compliance was the only reason that the Department under spent on this function and monitoring of performance and budget expenditure of NPOs.
There was a concern that there are NPOs and NGOs that are working but are not paid on time.

Even though there is non-compliance, NPOs do a lot of work for the department.

The Department explained that the registration and compliance tracking mechanism does not include tracking of funding of NPOs.

It is still in the process of developing a system to track the funding which will be implemented before the end of the current financial year.
It does not hold the position as that of Gauteng 13 43 DSD and it will make a follow up on it as it has far reaching implications.

To monitor performance of NPOs, department officials visit communities through the roadshow programmes where onsite reporting is done.

It also created awareness programmes on the importance of compliance.

Furthermore, provinces forward a list of NPOs they intend to fund to the Department and it performs a compliance verification in its database.
Also, on quarterly basis the provinces submit their payment reports.

With regard to funding, it makes payments in two tranches a year and there is strict monitoring that requires NPOs to submit their progress reports before funds are transferred.

• Submit on the Social Sector: the Committee further wanted to know the reason a group of 350 NPOs were not included in the Social Sector summit, even though they participated in 2019.
The Department explained that the Summit was hosted in partnership with NEDLAC and the Presidency and because it was a wider platform, the Department had to create a streaming option for those who could not be accommodated.

Also the Department was not able to accommodate every NPOs due to budget limitations.

However, together with NEDLAC and Presidency it will process all the inputs these NPOs raised.
In 2019 it managed to accommodate 3 000 NPOs but due budgetary constraints in 2022 it only managed to accommodate 6 00 NPOs.

It is yet to explore and discuss the suggestion of a single funding strategy of NPOs.

• Over expenditure due to SRD grant hotline: the Committee wanted to know the progress made in resolving this matter with SASSA.

The Department explained that this is a sensitive matter and it continues to pay as it cannot terminate the contract to detriment of beneficiaries.
There is a continuing engagement with SASSA.

SASSA is working on its procurement processes and once finalised the Department will be reimbursed.

• Fruitless and wasteful expenditure: the Committee queried why this expenditure has not been reported in latest quarterly reports.

The Department explained this was an oversight and it will be reported on in the coming quarterly reports.
For the period under review it had R430 000 fruitless and wasteful expenditure, R1 246 was recoverable and R232 000 was written off.

14 44 • Social Economic Impact Analysis (SEIAS) on draft Policy on Prevention of and Treatment for Substance Use Disorders: the Committee wanted to know the reason(s) behind the delay in obtaining the certification on this draft Policy.

The Department explained that this is the responsibility of the Department of Planning, Monitoring and Evaluation (DPME).
There had been back and forth discussions between the two departments because DPME needed more information on the policy.

On Monday, 19 September 2022 the department finally received the certificate.

• Adjudication of appeals: the Committee wanted to know if the 306 appeals cases adjudicated included appeals on the SRD grant.

The Department reported that it includes appeals on SRD grant and the sharp increase will be reflected in the second quarter reporting.
• Wide Sector Strategy on the Employment of Social Service Professionals: the Committee wanted to know the status on the submission of the joint bid for the funding for the employment of social workers to National Treasury.

The Department reported that it was submitted to National Treasury in July 2022 and it was hoping it will receive feedback by October 2022.
• Effectiveness of substance abuse treatment centres: the Committee raised a concern regarding the effectiveness of substance abuse treatment centres, especially after care and re-integration services of users to communities.

It had observed an increasing number of young people who committed suicide after they had been released from the treatment centres, mostly from unregistered treatment centres.

It wanted to know how is the department addressing this challenge of unregistered treatment centres.
The department reported that it funds 13 public treatment centres and hundreds private treatment centres and SANCA facilities subsidised by provinces.

In terms of the legislation provinces are required to close all unregistered treatment centres.

• Capacitation of 100 Service Practitioners on HIV Testing Services Guidelines: the Committee noted that the Northern Cape department did not participate in the capacity building and wanted to know the reason that was given.
15 45 The Department reported that the provincial department had cited competing priorities.

However, the training had already been done at the time of the reporting.

• Training of municipalities on the integration of migration issues on the Integrated Development Plans (IDPs): the Committee noted that the Department did not achieve its target of training 23 municipalities.
The department assured the Committee that it will develop a catch up plan that will ensure that all municipalities are trained during the current financial year.

• Teenage pregnancy and Baby Savers: the Committee raised a concern regarding the high levels of teenage pregnancy in the country and wanted to know the Department’s view on the concept of Baby Savers.
The department explained that it does have not any Baby Savers but has 74 temporary safe care places, where abandoned, neglected and abused children are placed for foster care and adoption.

The country does not have any registered Baby Savers.

Report to be noted.

16 46 3.

REPORT OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT ON THE FOURTH QUARTER PERFORMANCE AND EXPENDITURE REPORT FOR 2021/22 OF THE DEPARTMENT OF SOCIAL DEVELOPMENT (DSD), DATED 19 OCTOBER 2022 1.
INTRODUCTION The Portfolio Committee on Social Development (hereinafter referred to as the Committee) having examined the Fourth Quarter Performance and Expenditure Report for 2021/22 of the Department of Social Development (hereinafter referred to as Department) on 07 September 2022, reports as follows: 2.
MANDATE OF THE COMMITTEE The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising and overseeing the department’s action.

It is to conduct oversight that is driven by the ideal of realising a better quality of life for all people of South Africa.
The Committee is also required to facilitate public participation, monitoring and oversight over the legislative processes relating to social development.

In doing this, it also confers with relevant governmental and civil society organs on social development matters.

The Committee also enhances and develops the capacity of its members to exercise effective oversight over the Executive Authority in social development.
It monitors whether the Department of Social Development fulfils its mandate according to priorities.

It also has a mandate to perform the following: • Considers legislation referred to it; • Conducts oversight of any organ (s) of the state and constitutional institution(s) falling within its portfolio; 1 47 • Facilitates appointment of candidates to entities; • Considers international agreements; and • Considers budget of department and entities falling within its portfolio.
For the current medium term (2019 – 2024), the Committee’s oversight focuses on the department and its entities performance with regard to the implementation of the priorities set in the National Development Plan and in the Medium Term Strategic Framework.

3.
3.

THE MANDATE OF THE DEPARTMENT The department derives its mandate from several pieces of legislation and policies, including the White Paper for Social Welfare (1997) and the Population Policy (1998), which sets out the principles, guidelines, policies and programmes for developmental social welfare in South Africa.

The White Paper for Social Welfare has provided the foundation for social welfare in the post-1994 era.
The Constitutional mandate of the department is to provide sector-wide national leadership in social development by developing and implementing programmes for the eradication of poverty and social protection and development amongst the poorest of the poor and most vulnerable and marginalized.
3.1 Policy priorities for the medium term • Priority 1: A Capable, Ethical and Developmental State • Priority 2: Economic Transformation and Job Creation • Priority 3: Education, skills and Health • Priority 4: Consolidating Integration, Human Settlement and Local Government • Priority 5: Spatial Integration, Human Settlement and Local Government • Priority 6: Social Cohesion and Safe Communities 2 48 • Priority 7: A better Africa and World 3.2 National Development Plan (NDP) The abovementioned priorities are in line with the (NDP) vision 2030, which inter alia promotes social protection and is defined by: • Protective measures to save lives and reduce levels of deprivation; • Preventative measures which help people avoid falling deeper into poverty and reduce their vulnerability; • Promotive measures which enhance the capabilities of individual communities and institutions; • Transformative measures which tackle inequities through changes in policies, laws and budgets; and • Developmental and generative measures, which increase the poor’s consumption by promoting local economic development.
3.3 Key strategic themes emerged from the State of the Nation Address (SONA) 2021, which have a bearing on the Department: The following key strategic themes emerged from SONA 2021, which have a bearing on social services sector: • Ending gender-based violence (GBV): The President noted that “ending gender- based violence is imperative if we lay claim to being a society rooted in equality and non-sexism”.
He made mention of the National Strategic Plan on Gender- based Violence and plans to strengthen the criminal justice system through the introduction of legislation, as well as reducing the backlog of gender-based violence cases.

Over the next 3 years Government will allocate approximately R12 billion to implement the various components of the National Strategic Plan.
3 49 • Extension of the Special COVID-19 Grant: SONA 2021 stated that COVID-19 has contributed to rising poverty and deepening inequality, with the country’s economy 6 percent smaller in the third quarter of 2020 compared with the last quarter of 2019.

Furthermore, there were approximately 1.7 million fewer people employed, and unemployment stands at 30.8 percent.
Government’s social and economic relief package, introduced in April 2020, has identified R500-billion (10 percent of GDP) in measures to provide cash to poor households, provide wage support and provide relief to struggling businesses.

As a result, a third of South Africa’s population, 18 million people, received additional grant payments, lifting more than 5 million above the poverty line.
In this regard, the President announced that the period for Special COVID-19 Grant would be extended by a further three months.

• Persons with disabilities: Government will forge ahead with providing greater opportunities for persons with disabilities to participate in the economy and in society in general.
• Services aimed at children: SONA 2021 states that attention must be given to issues affecting children, including Early Childhood Development (ECD) planning and funding, protection against preventable diseases, and policy reform around child welfare and reducing violence against children.

4 50 4.
4 50 4.

OVERALL ASSESSMENT OF THE FINANCIAL PERFORMANCE The financial performance reported below was sourced both from the Department’s presentation to the Committee and from the National Treasury Fourth Quarter Expenditure Report.

Figure 1: Adjusted budget appropriation for 2021/22 Overall allocation: R232.1 billion Programme 1: R474.9 million Programme 2: R224.
5 billion Programme 3: R8.1 billion Programme 4: R1.5 billion Programme 5: R366.4 million The Department received an overall allocation of R234.10 billion for the 2021/22 financial year, of which R234.

billion was appropriated for transfers and subsidies.

R222.7 billion of the transfers and subsidies expenditure (99.2 percent) was earmarked for households for social grants.
About R8 billion was allocated for transfer to the South African Social Security Agency (SASSA) for administration of social grants, while R246.0 million to the National Development Agency (NDA).

It spent R233.1 billion by the end of fourth quarter.

The Department, through Programme 2, was allocated an additional funding of R26.2 billion towards the continuation of the SRD grant from 1 September 2021 until 31 March 2022.
5 51 Table 1: Programme Expenditure per quarter as at 31 March 2022 Adjusted Budge t al l ocati on Expendi ture pe r quarte r Total spending Pe rcentage Programme Q uarte r 1 Apri l – June 2020 Q uarte r 2 Q uarte r 3 Jul y – S ep 2020 O ct 2020 - De c Q uarte r 4 Jan – March 2021 R’000 R’000 R’000 R’000 R'000 % S pent 1: Administ rat ion R474 797 R114 182 R111 239 R122 774 R124 075 R472 269 99.47% 2.
Assist ance Social R224 226 542 R52 387 121 R50 326 396 R61 508 160 R59 676 039 R222 897 717 99.19% 3.Social Securit y Policy and Administ rat ion Welfare 4.

Services Policy Develop ment and Imp lement at ion sup p ort 5.
Social Policy and Int egrat ed Service Delivery R8 072 401 R1 851 387 R1 862 887 R1 867 567 R2 470 407 R8 052 807 99.76% R1 516 316 R299 061 R324 803 R390 806 R490 538 R1 505 208 99.27% R366 378 R156 469 R24 444 R150 056 R29 782 360 751 98.46% Total R234 118 972 R54 044 543 R52 700 719 R63 711 691 R62 478 154 233 932 108 99.21% Table 1 above indicates a good financial expenditure, despite some underspending, across all programmes per quarter.
Underspending related to the following reasons: • Programme 1: normal staff turnover and operational savings during the financial year.

• Programme 2: Old Age and Child Support grants for which less than expected beneficiaries applied and being paid during the financial year.

• Programme 3: net effect of the non-establishment of the Inspectorate as a result of the delay in the approval of the Social Assistance Bill in Cabinet during the 3rd quarter of the 2021/22 financial year.
• Programme 4: Covid-19 restrictions resulting in less travelling, accommodation and outreach programs for the financial year as well as payments to National Councils denied as a result of non-compliance.

6 52 • Programme 5: operational savings on events and outreach programmes scheduled during the financial year as a result of Covid-19 restrictions.
According to the National Treasury report and as was presented to the Committee by the Department during quarters 1 – 3 reporting, Programme 1 had an unauthorised expenditure of R54.4 million due to the operation costs of the toll-free hotline for the special Covid 19 SRD grant, with an estimated cost of R3 million per month.

The efforts to be reimbursed by SASSA were not successful.

5.
5.

OVERVIEW OF NON-FINANNCIAL PERFORMANCE This section focuses on Department’s non-financial performance for the fourth quarter of 2021/22 financial year using the 2021/22 Annual Performance Plan (APP) as a benchmark.

As can be seen from Figure 2 below, for the 4th quarter of 2021/22, the department set itself of total of 64 targets and managed to achieve 45 (70%).

A total of 19 (or 30 percent) of set targets were not met.

These targets were incorporated into the plans for 2022/2023 financial year.
In quarter 3, it had the highest performance of 86% because six (6) targets that were achieved in this quarter were planned for the fourth quarter.

7 53 Figure 2: DSD overall performance per quarter between April 2021 and March 2022 Table 2: Achievement of targets per programme: Quarter 4 of 2021/2022 Programme No.

of targets No.
of targets No.

of targets Total targets % achieved not achieved Performance Programme 1 Programme 2 Programme 3 Programme 4 Programme 5 Total targets 7 1 7 14 16 45 5 0 3 8 3 19 12 1 10 22 19 64 58% 100% 70% 64% 84% 70% As shown in Table 2, Programme 1 and 4 had the lowest achievement of targets, respectively, compared to other programmes.

This is despite Programme implementing the core constitutional mandate of the Department.
8 54 The important targets that were achieved included the following: • Produced a fieldwork report on an Evaluation of the Food Distribution Hybrid Model as planned.

• Developed an Electronic Monitoring System for selected Social Development Sector programmes as planned.

• Implemented the Donor Management Strategy.

• Revised and completed a draft policy on Integrating Children’s Grant Beneficiaries with Government services.
• Finalised a pilot report on the implementation for Guidelines on Community Based Prevention and Early intervention services to vulnerable children.

• Finalised a pilot report on the implementation of the Inter-Sectoral Protocol on the Prevention and Management of Violence against Children, Child abuse, Neglect and Exploitation.

• Capacitated social workers to provide adoption services in order to ensure that the adoption services are accessible to even people who do not have means.
• Developed a draft ECD Quality Assurance and Support System.

• Produced quarterly monitoring reports to determine the increase in the number of children accessing ECD services were received from provinces.

Among the targets not achieved, the Department did not achieve the following targets: • Draft Regulations on the amended Fund-Raising legislation could not be completed because the processing of the Bill by Parliament has not been concluded.
• The Policy on Social Development Services to Persons with Disabilities was not submitted to Cabinet for approval.

It was critical to obtain executive buy-in before tabling the Policy at the Social Cluster and Cabinet for approval.

Furthermore, SEIAS certification is a requirement for presentation of the Policy to Cabinet.

Final SEIAS approval and certification was granted only in March 2022.
• The Social Service Practitioners Draft Bill was not submitted to Cabinet due the dependency of Office of the Chief State Law Adviser (OCSLA) for final certification of the Bill.

9 55 • The Victim Support Services Bill was also not submitted to Cabinet for approval due to delays in responding to OCSLA comments and recommendations because of lack of capacity within Legal Services Unit.

• Public consultations on the Green Paper on Comprehensive Social Security were not held.
However, refinements to the green paper commenced and a Cabinet memo was submitted.

The Green Paper was gazetted for public consultations on 18 August 2021 and subsequently withdrawn on 31 August 2021.

The withdrawal was to allow the Department to provide better clarity on some of the technical aspects of the proposals which were not well understood.
Many stakeholders misrepresented the proposals, particularly on the National Social Security Fund and fiscal implications and options for a basic income grant.

This work is continuing in the 2022/23 financial year.

6.

COMMITTEE DELIBERATIONS AND OBSERVATIONS • The Committee congratulated the Department for finalising the Monitoring and Evaluation system and reducing the irregular, fruitless and wasteful expenditure.
It however, wanted to know the reason it was not successful in recouping the R54.4 million unauthorised expenditure from the South African Social Security Agency (SASSA) that resulted from operational costs of the Covid 19 hotline?

The Department explained that it struggled to get reimbursement from SASSA because SASSA had to first had to go through the procurement process.

The Department ended up paying the costs but it will eventually claim the amount from SASSA.
• It wanted to know what the Draft Sector Strategy for employment of social workers aims to address and how is it different to other existing strategies?

It made reference to the march of the social workers to the Union Building highlighting the plight of the 9 000 unemployed social workers.

10 56 The Department reminded the Committee that in 2019 the Cabinet took a resolution for relevant department to employ social workers.
However, in practice these departments see the employment of social workers as the primary responsibility of DSD.

Thus the Sector Strategy aims to reinforce the Cabinet resolution by assisting the sector departments to understand their needs for social service professionals.

It is also broadening the scope of the entire cohort of social service professionals.
In addition, the Department has taken a responsibility to mobilise funding from National Treasury for the employment of social workers both by DSD and sector departments.

This is because these departments tend to prioritise their core mandates when allocating their budgets.

It was expecting a response from National Treasury by end of September 2022 for its bid of R9 billion.
Thus far National Treasury has seen the challenge of shortage of social workers and appreciates the fact that social workers are the first point of call to address social ills compared to police, for example.

The Department has also taken an approach that the funds be ring-fenced and it will monitor their expenditure by the sector departments.
The strategy is also addressing the increase in social ills by regulating for a working relationship between DSD and local government as local government can be a major recruiter of the social service professionals.

The Sector Strategy will be revised to include employment of retired social workers.

• The Committee wanted to know when the draft Policy on Maternal Benefits and the draft Policy Linking Child Support Grant beneficiaries to government services will be finalised?
The Department reported that it was still consulting on them and the reason it was taking longer was that the consultation involved other four (4) departments.

It 11 57 needed to obtain the support from these departments before it tables them to Parliament.

It envisages to finalise the process by end of the current financial year.
• The Committee further raised a concern that what is seen on paper is good but the outcomes are not felt on the grounds, particularly with regard to the increase in substance abuse, GBVF and violence against children.

This raises a concern that these plans may not be effective in addressing these social ills.
The Department explained that GBVF is an intersectoral matter that is led by the Department of Youth, Children and People with Disabilities and so the impact will be realised when all the departments work together.

DSD implements Pillar 4 of the National Strategic Plan on GBV and it is currently targeting institutions of higher learning.

It is providing prevention and trauma counselling.

It also has programmes targeting men and boys.


Substance abuse is also a multisectoral issue guided by the National Drug Master Plan (2019 – 2024), which identifies 13 key departments.

DSD is working with the Medical Research Council (MRC) whose research revealed that the country has a serious problem of underage drinking.

It has also developed a programme of action (POA) and has submitted it to Cabinet.
The POA highlights the problem of poor regulations of taverns and advertising, which is mainly in the domain of the Department of Trade and Industry (DTI).

It is also upscaling access to substance abuse treatment programmes.

It noted that prevention programmes on curbing substance abuse and GBV have long term outcomes.

• The Committee also wanted an update on the payment of the SRD grant.
Also if the Child Support Grant (CS) Top Up grant also stop when the child turns 18 years, whereas the Foster Child Grant (FCG) can be paid until the child turns 21 years.

12 58 The Department explained that the grant ends at 18 years because it builds on the current CSG which ends at 18 years.

• The Committee also wanted to know what caused the delay in the finalisation and submission of the Policy on Social Development Services to Persons with Disabilities to Cabinet for approval.
It was concerned about the impact this will have on services to people with disabilities.

The Department explained that it took time to develop the policy and it has been a legacy project.

It was earlier rejected by the social cluster.

The cluster advised that the Department needed to wait first for the White Paper on Disability to be finalised.

Now that the White Paper was finalised the policy was revised and re- submitted to the social cluster.
The Policy is a review of the previous policy so services to people with disabilities continue to be provided at a provincial level.

• The Committee also sought clarity on the capacity issues at the Office of the Chief State Law Advisor and what interventions, maybe from Parliament, may be taken to prevent delays in processing referred amendment Bills.

• It wanted to know what the Department was doing to address internal inefficiencies that resulted in targets not being met?
The Department reported that it has been working on fostering a shared organisational culture and a corporate culture and this has assisted it in keeping track on the implementation of programmes.

Procurement patterns and operational plans are also closely monitored.

It also developed standard operating procedures for business units.

13 59 • The Committee commended the Department for implementing development programmes to capacitate its officials as they deal with very complex issues.
It wanted to know how often are these programmes are implemented?

The Department explained that it capacitates and monitors implementation of policies by provinces.

It made reference to the 2019 UNISA study conducted in Mpumalanga that revealed that programmes implemented have had impact on the ground.

• It noted that the Department adjudicated 97.96% cases within 90 days.

It wanted to know what the appeals were mainly for?
The Department explained that even though it would be ideal to have lesser appeals but it is a constitutional right for applicants who are not happy with the decision of SASSA to lodge an appeal.

Ninety- percent (90%) of the adjudication processes confirmed that SASSA’s decisions were lawful and procedurally fair.

Ninety-five percent (95%) of the received appeals were medical appeals related to the Disability Grant and Care Dependency Grant mainly from people with chronic diseases who keep on applying.
This raises a question that will need to be explored with the Department of Health on what services can be provided to people with chronic illnesses.

• It further wanted to know if the research that reported that there are 150 000 orphaned children due to Covid 19 has any impact on the work of the Department.

The Department responded that it had no understanding of the magnitude of these orphans, except the number of people applying for the FCG.
The study estimated the number of orphans based on how the HIV/AIDS pandemic resulted in a large increase of orphans.

The Department was embarking on an audit to identify and locate these orphans, identify who is taking care of them and determine if they are in need of care and protection.

14 60 • The Department was requested to provide the Committee with a list of all fruitless and wasteful expenditure cases.
• The Committee wanted to know if there is an exit plan for the beneficiaries of the Community Nutrition Development Centres (CNDCs)?

The Department explained that CNDCs have a development arm which is guided by a framework which requires beneficiaries to be skilled.

Beneficiaries are trained in agricultural farming and the Department creates market for them.

The Department is also planning on establishing CNDCs in informal settlements.
• The Committee reiterated its concern that the Department’s website does not have latest policies and regulations.

The Department acknowledged that its website is not user friendly and the matter has been taken to Bid Adjudication Committee (BAC) to start the bidding process for a service provider.

• It raised a concern in relation to challenges children with disabilities are faced with regarding gaining access to schools.
It wanted to know what discussions the Department had with the Department of Basic Education to address this?

• It also raised a concern that there were issues that it had raised with the Department but have not been addressed, such as the R8.2 million budget for NPOs.

There is no clarity on the value for money and impact of the programmes and services rendered by the NPO sector.

The Minister had also raised this as a concern.


Has the Department conducted any cost benefit analysis on the funds spent on the NPOs?

15 61 The Department reported that it has finalised the development of terms of reference for the cost benefit analysis study.

• It wanted an update on the development and implementation of the Electronic Monitoring System for selected Social Development Sector Programmes.
The Department explained that this is a 3-year project that required substantial work to be done before it was developed to understand the infrastructural needs.

In the current financial year, the system was piloted in 3 provinces which revealed some challenges with the system that need to be corrected.

The Department is working with the service provider to develop an implementation plan, which will outline the tools of trade, capacity of capturers and cost implications.

Report to be noted.

16 62 4.


PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT BUDGET REVIEW AND RECOMMENDATION REPORT (BRRR), 2021/2022, DATED 19 OCTOBER 2022 1.

INTRODUCTION The Portfolio Committee on Social Development considered the financial and non-financial performance of the Department of Social Development, South African Social Security Agency (hereafter SASSA or the Agency), and the National Development Agency (hereafter the NDA or Agency) on 12 October 2022.
It also received briefings from the Auditor-General of South Africa on the same day.

The Committee reports as follows: The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising and overseeing the department’s action, that is driven by the ideal of realising a better quality of life for all people of South Africa.
It is also required to facilitate public participation, monitoring and oversight over the legislative processes relating to social development and also to confer with relevant governmental and civil society organs on social development matters.

The Committee also enhances and develops the capacity of its members to exercise effective oversight over the Executive Authority in social development.

It monitors whether the Department of Social Development fulfils its mandate according to priorities.
The Committee also has a mandate to perform the following: • Considers legislation referred to it; • Conducts oversight of any organ (s) of the state and constitutional institution(s) falling within its portfolio; • Facilitates appointment of candidates to entities; • Considers international agreements; and • Considers budget of department and entities falling within its portfolio.
For the current medium term (2019 – 2024), the Committee’s oversight focuses on the department and its entities performance with regard to the implementation of the priorities set in the National Development Plan and in the Medium Term Strategic Framework (MTSF).

The Committee also 1 63 2 conducts oversight over the department’s performance in implementing the priorities of the State of the Nation Address (SONA).
National Development Plan (NDP) These are the priorities of the NDP that the Committee focuses on: • establishment of a social floor which outlines an acceptable or decent standard of living, • bringing the informal sector into the mandatory contributory scheme, • expanding social welfare system, • • reviewing funding to not-for-profit organisations, training more welfare professionals and community workers, • expanding public employment programmes, • promoting opportunities for youth employment.
• use of social audits to enhance accountability in the welfare system, and • the integration of all databases of people who receive different forms of social security services.
Medium Term Expenditure Framework (MTEF) Priorities – 2019/2024 • Priority 1: A Capable, Ethical and Developmental State • Priority 2: Economic Transformation and Job Creation • Priority 3: Education, skills and Health • Priority 4: Consolidating Integration, Human Settlement and Local Government • Priority 5: Spatial Integration, Human Settlement and Local Government • Priority 6: Social Cohesion and Safe Communities • Priority 7: A better Africa and World State of the Nation Address (SONA), February 2021 The 2021 SONAs outlined the following policy objectives that have a bearing on social development sector: 2 64 3 • Ending gender-based violence (GBV): The President noted that “ending gender-based violence is imperative if we lay claim to being a society rooted in equality and non-sexism”.
He made mention of the National Strategic Plan on Gender-based Violence and plans to strengthen the criminal justice system through the introduction of legislation, as well as reducing the backlog of gender-based violence cases.

Over the next 3 years Government will allocate approximately R12 billion to implement the various components of the National Strategic Plan.
• Extension of the Special COVID-19 Grant: SONA 2021 stated that COVID-19 has contributed to rising poverty and deepening inequality, with the country’s economy 6 percent smaller in the third quarter of 2020 compared with the last quarter of 2019.

Furthermore, there were approximately 1.7 million fewer people employed, and unemployment stood at 30.8 percent.
Government’s social and economic relief package, introduced in April 2020, had identified R500-billion (10 percent of GDP) in measures to provide cash to poor households, provide wage support and provide relief to struggling businesses.

As a result, a third of South Africa’s population, 18 million people, received additional grant payments, lifting more than 5 million above the poverty line.
In this regard, the President announced that the period for Special COVID-19 Grant would be extended by a further three months.

• Persons with disabilities: Government would forge ahead with providing greater opportunities for persons with disabilities to participate in the economy and in society in general.
• Services aimed at children: SONA 2021 stated that attention must be given to issues affecting children, including Early Childhood Development (ECD) planning and funding, protection against preventable diseases, and policy reform around child welfare and reducing violence against children.

2.

PURPOSE OF THE BRRR 3 65 4 As part of exercising its oversight work, the Committee considered the 2021/2022 annual reports of the department and its entities.
This BRRR reports on the financial and non-financial performance of the department and its entities.

In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

of 2009, the National Assembly (NA) through its committees must annually assess the performance of each national department.
Portfolio Committees must thus annually submit Budget Reviews and Recommendation Reports (BRRRs) for tabling in the NA in order for Parliament to compile a report for the Medium Term Budget Policy Statement.

The Money Bills Amendment Procedure and Related Matters Act therefore make it obligatory for Parliament to assess the department’s budgetary needs and shortfalls vis-à-vis the department’s operational efficiency and performance.
Most importantly, the budget review process enables the Committee to amend the budget allocation of the department through the recommendations it makes.

Its recommendations are considered during the consideration of the Medium Term Budget Policy Statement (MTBPS).

The budget review process also enables the Committee to make recommendations to the Minister of Social Development on issues pertaining to service delivery.
This therefore means that the analysis contained in the BRRR is both backward and forward looking.

Methodology The BRRR culminated from a very intense and thorough analysis and interaction with the Department of Social Development, the South African Social Security Agency (SASSA) and the National Development Agency (NDA).

These included briefings from the department and its entities on their quarterly reports and briefings on their annual reports.
The Committee also received a briefing from the Office of the Auditor-General on the audit outcomes of the department and its entities financial and non-financial performance for the year under review (2021/2022).

4 66 5 THE DEPARTMENT OF SOCIAL DEVELOPMENT (DSD) 3.
COMMITTEE OVERSIGHT 3.1 ANALYSIS OF FINANCIAL EXPENDITURE AND TARGETS ACHIEVED PER QUARTER FOR 2021/2022 FINANCIAL YEAR The Committee received quarterly expenditure and non-financial performance report for the four quarters of the 2021/2022 financial year.

Table 1 and Figure 1 below show the expenditure and performance reports of the Department per quarter.
Table 1: DSD Budget expenditure per quarter Adjusted Budge t al l ocati on Expendi ture pe r quarte r Total spending Pe rcentage Programme Q uarte r 1 – Apri l June 2020 Q uarte r 2 Q uarte r 3 Jul y – S ep 2020 O ct 2020 - De c Q uarte r 4 – Jan March 2021 R’000 R’000 R’000 R’000 R'000 % S pent 1: Administ rat ion R474 797 R114 182 R111 239 R122 774 R124 075 R472 269 99.47% 2.
Assist ance Social R224 226 542 R52 387 121 R50 326 396 R61 508 160 R59 676 039 R222 897 717 99.19% 3.Social Securit y Policy and Administ rat ion Welfare 4.

Services Policy Develop ment and Imp lement at ion sup p ort 5.
Social Policy and Int egrat ed Service Delivery R8 072 401 R1 851 387 R1 862 887 R1 867 567 R2 470 407 R8 052 807 99.76% R1 516 316 R299 061 R324 803 R390 806 R490 538 R1 505 208 99.27% R366 378 R156 469 R24 444 R150 056 R29 782 360 751 98.46% Total R234 118 972 R54 044 543 R52 700 719 R63 711 691 R62 478 154 233 932 108 99.21% Figure 1: DSD performance success rate per quarter 5 67 6 Quarter 1 – 3 (April - December) of 2021: The overall, departmental expenditure for this period amounted to R170 954 billion (73.64%) compared to R176.2 billion (76%) in 2020/2021 financial year.
In 2019/2020 financial year, during the same period, it spent R137.6 billion (74%).

This demonstrates a consistent expenditure pattern for the period under review, even in 2020/2021 financial year there was a slight increase.

Quarterly (2021/2022), the department had a highest spending in quarter 3 of R63.

691 million compared to R52.

719 million and R54 543 million in quarters 2 and 1, respectively.
With regard to non-financial performance, the department managed to achieve 76% of its planned targets for quarter 3, compared to 86% and 77% in quarter 2 and 1, respectively.

During the third quarter in 2020/2021 financial year, it had only managed to achieve 67% but had a highest performance in the second quarter of 81%.

In 2019/2020, it had the lowest performance of 60% in the third quarter, 62% and 64% in the second and first quarters.
Quarter 4 (Jan – March of 2022): The overall departmental expenditure by the end of quarter 4 amounted to R62 154 billion.

With the combined expenditure for the previous three quarters, the Department spent R233 108 billion (99.21%) of its allocated of R234 972 billion for 2021/2022 financial year.

The department had planned to achieve 64 targets but it managed to achieve 45 (70%) targets.
Compared to the previous three quarters, the Department had the lowest performance in quarter 4, with lowest performance in Programme 1 and Programme 4.

Both Programmes had 58% and 64% performance, respectively.

The fourth quarter performance gives an indication of the annual performance of the Department.

That means some targets that were not met during this quarter could not be achieved for the year.
6 68 7 COMMITTEE OBSERVATIONS Detailed Committee observations, deliberations and responses from the Department are contained in its reports on Section 32 reports (quarterly reports) on the non-financial and financial performance of the Department for 2021/2022 financial year.

However, it is important to highlight some of the key observations it made that it was seriously concerned about and require urgent department’s action.
They are as follows: • The high number (5 111) of NPOs not registered, monitoring and evaluation conducted on the impact of the NPOs to assess value for money, timeframes attached to the duration of the funding of the non-profit organisations (NPOs) and clarity on what happened to the NPOs that were not registered within the targeted 2 months?

• Safety of the Department’s firewall in the wake of the hacking of the IT system of the Department of Justice and Correctional Services.
• The R4 million monthly charges for the TELKOM TOLL FREE LINE, which is billed to the Department even though the line was mainly used for SASSA services – SRD grant application queries.

• Status on the payment of the Presidential ECD Employment Stimulus Relief Fund in the aftermath of the ECD migration to the Department of Basic Education (DBE).

Will National Treasury roll over unspent funds to the new financial year?

• Lack of availability of the approved policies on the Department’s website.
It emphasised that these policies should be made easily available to the Committee.

• Delays in the finalisation and submission of the Policy on Social Development Services to Persons with Disabilities to Cabinet.
• Targets to develop and submit to Cabinet draft Bills (the Social Service Practitioners Bill and the Victim Support Services Bill) not achieved due to delayed response from Office of the Chief State Law Advisor (OCSLA), with regard to the former, and delayed responses from the Department to the comments and recommendations made by OCSLA, with regard to the latter.

4.
4.

AUDITOR – GENERAL SOUTH AFRICA (AGSA) FINDINGS FOR 2021/2022 The Department received an unqualified audit report with findings for the year under review.

The findings related to the following areas: 7 69 8 • AGSA not able to obtain sufficient appropriate evidence to audit the reliability of the achievement of 57.7% reported for children who have access to quality ECD services during the 2021/2022 financial year.
This was due to the inadequate system to track the achievement of targets for ECD services.

This had an impact on the quality of ECD services being provided and whether funds were spent correctly for those services rendered.

• Key targets linked to the medium term strategic framework were not achieved.

These included implementing policies and legislation improving social security coverage and obtain approval on the Policy and Draft Bill on Social Development Services to People with Disabilities.
• If an accrual basis of accounting is implemented the Department’s total liabilities will exceed it total assets and this will impact on its solvency in the future.

• The unauthorized expenditure balance from the prior years has not yet been authorized and as a result the net bank balance remains in an overdraft of R15 billion.
This relates to the early payments of social grants in March 2020 instead of April 2020 as a measure to assist beneficiaries cope with the economic impact of the Covid 19 pandemic.

The Standing Committee on Public Accounts (SCOPA) is yet to finalise a report regularising this expenditure.

• Uncompetitive and unfair procurement processes, prohibited awards to other state officials and limitations on audit of awards selected for testing.
• Irregular expenditure of R14.67 million was incurred and contributors included – R1.55 million for no value for money, R9.81 million for breach of five pillars of procurement (equitable, fairness, cost effectiveness, transparency and competitiveness and R2 million due to non- justifiable reasons to deviate on contract awarded.

• A total of R19.35 million for irregular expenditure not dealt with.

The South African Social Security Agency (SASSA) also received an unqualified audit report with findings.
The findings related to the following areas: • The actual achievement reported for the percentage of new grant applications processed within stipulated timeframes differed from the supporting evidence provided for audit, as a result the accuracy of the reported achievement for that indicator could not be confirmed.

In-accurate systems to track application 8 70 9 turnaround times has a direct impact to the service delivery due to some undetected delays in providing social assistance to citizens.
This is also aligned to public outcry on delays of processing of their applications by SASSA.

• Key targets linked to medium term strategic framework were not achieved.

These included targets on the number of children below the age of 1 in receipt of the children’s grant, number of social relief of distress applications awarded and percentage of COVID-19 Special Relief grant applications processed.
• Identified Material Irregularities (MIs) of R74 million over the payment for social services not rendered, R316 million payments made where no goods and services were received and payment of SRD grant to ineligible beneficiaries.

SASSA Accounting Authority had taken actions to address the MIs.

• Non-compliance with key legislation that resulted in irregular, unauthorized and fruitless and wasteful expenditure.

• Uncompetitive and unfair procurement processes.


• A total of R54.62 million of irregular expenditure made of R54.45 million for no value for money and R176.552 due to awards not approved by delegated officials and expenditure incurred without purchase orders.

• A total of R993.66 million irregular expenditure not dealt with.
The National Development Agency (NDA) also received an unqualified audit report with findings with regard to non-compliance with key legislation, particularly in relation to procurement and contract management as well as uncompetitive and unfair procurement processes.
4.1 Recommendations to the Portfolio Committee AGSA made the following recommendations to the Committee: • Monitors the accountability ecosystem to ensure that all role players/assurance providers effectively exercise their roles to improve audit outcomes and ensure service delivery is provided by the social development portfolio.
• Actively engages with all role players within the accountability ecosystem to ensure that appropriate measures to resolve the MIs (Material Irregularities) are effectively implemented.

9 71 10 • Obtains a progress report from SASSA Accounting Authority regarding the status of investigations and if finalized the actions taken to address MIs through implementation of relevant actions taken against all implicated officials and recoveries where appropriate.
• Requests SASSA Accounting Authority to present a plan of action regarding the implementation of all recommendations AGSA made as included in the audit report for the R350 grants MI to ensure that such actions are implemented within the due date as stipulated.

• Follows up on the implementation of consequence management for long outstanding cases.

• Follows up on the process that SASSA is following to obtain all relevant databases to validate payments to only valid beneficiaries for the SRD grant.
• Follows up on the action to recover payments from invalid beneficiaries and further action taken for claiming benefits that are not due to the individual.

Recommendations to the Portfolio Committee • The Committee should obtain progress from the Accounting Authority regarding the status of investigations and if finalised the actions taken to address MIs through implementation of relevant actions taken against all implicated officials and recoveries where appropriate.
• It should also monitor the utilisation of the preventative control guides as developed by the AGSA to assist other oversight functions to ask relevant questions during their oversight.

• The Committee should request the Accounting Authority to present a plan of action regarding the implementation of all recommendations as included in the audit report for the R350 grants MI to ensure that such actions are implemented within the due date as stipulated.
• The Committee should follow up on the implementation of consequence management of long outstanding cases.

• It should also follow up on the process that SASSA is following to obtain all relevant • • databases to validate payments to only valid beneficiaries for the SRD 350 grant.

It should also follow up on the action to recover payments from invalid beneficiaries.
It should also monitor the accountability ecosystem to ensure that all role players/assurance providers effectively exercise their roles to improve audit outcomes and ensure service delivery is provided by the portfolio.

4.2 Committee Observations 10 72 11 • Performance information: The Committee noted with concern AGSA’s finding on SASSA and DSD not able to achieve key targets that relate to the medium term strategic framework of the social development portfolio.
On SASSA not achieving its target on the number of children below the age of 1 in receipt of the children’s grants, the Committee wanted to know what is the AGSA’s opinion on its recommendation that SASSA enters into a similar arrangement to that of the Department of Home Affairs and the Department of Health to register new born babies at health care facilities.

The Committee also noted with concern AGSA’s finding that some of the targets reported on by the Department and SASSA could not be verified.
It wanted to know if there was any possibility that this could be the same with other programmes as well.

It has always been a problem of the Committee that what is reported on paper is not evident on the ground.

Is it possible for the AGSA during the year to receive a progress report on the implementation of the targets?
With regard to the recommendation for SASSA to have a similar registration system as that of the Department of Home Affairs and the Department of Health, the AGSA was of the opinion the suggestion might be a plausible solution but it is up to SASSA to explore it with the Department of Health.

The AGSA explained that it only audited programme 4 and there may be a concern that reported targets not verifiable can be found in other programmes as well.
It is important to note that most of the programme are implemented by provincial departments and it is up to the national department to verify the reported performance from the provinces.

• Repeat audit findings: The Committee noted with serious concern the repeat audit findings on lack of consequence management in the social development portfolio.

As a matter of urgency it would need to get progress reports on actions taken against officials responsible for financial mismanagement.
The AGSA’s has also over the past years expressed its concern about vacancies in critical posts.

The Committee wanted to know if AGSA was of the opinion that there were any improvements in filling of vacant posts across the social development portfolio?

11 73 12 The AG explained that the overall vacancy rate is 28.2% within the Department and most of it is within senior management and this is a serious concern because these positions have been vacant for more than 12 months.
• SRD database: The Committee wanted to know if the AGSA was of the opinion that SASSA has made any attempts to resolve challenges pertaining to the databases for SRD grant applications.

The AGSA explained that SASSA is depended on various institutions and it is important that it has its own mechanisms to verify applications.

The accuracy of information on the state databases is not in control of SASSA and when it requests updated databases it is not always provided on time.
This requires a government wide intervention to assist SASSA.

• Elimination of fraud and corruption: With the persistent fraud and corruption in the administration and payments of social grants, the Committee wanted to know if the AGSA was of the opinion that SASSA’s fraud unit has the power to eliminate fraud.
The AGSA advised the Committee to engage with fraud unit of SASSA to provide it with a more detailed information regarding fraud and corruption in the payment of grants and existing internal controls.

Payment of social grants is also done through the South African Post Office (SAPO) and so it is not always easy to determine where weaknesses are.
• Implementation of AG’s recommendations: The Committee wanted to know how many recommendations AGSA made that were implemented and not implemented by the Department for the 2020/2021 financial year.

The AGSA promised to forward the Committee with this information at a later stage.
• Parallel investigations: The Committee wanted to know if it was possible for investigations by state institutions run parallel with the Department’s or entities’ investigations to avoid delays in consequence management, especially in the long standing cases of financial misconduct.

12 74 13 The AGSA explained that investigations on irregular expenditure should be conducted as soon as they are identified.

Unfortunately, the long standing cases were not investigated.
Only when the mandate of the AGSA was extended to include Material Irregularities (MIs) these investigations were conducted.

The Department or its entities do not need to wait for the investigations by the state institutions to be finalized before they can implement consequence management.

• Findings on performance targets: The Committee appreciated AGSA’s linking of its findings on performance targets with the impact on service delivery.
This is an area that it had raised with the Department and its entities a number of times.

• Committee oversight on AGSA findings: The Committee noted that AGSA’s recurring findings, especially on irregular expenditure, highlight the need for the Committee to conduct real time oversight over the social development sector.

5.
5.

OVERVIEW OF THE ANNUAL FINANCIAL AND NON-FINANCIAL PERFORMANCE OF THE DEPARTMENT FOR 2021/2022 FINANCIAL YEAR The core mandate of the Department of Social Development (DSD) originates from the Constitution of the Republic of South Africa, 1996, as well as the White Paper on Welfare (1998) and other applicable legislation.

Section 27(1) (c) of the Constitution provides for the right of access to appropriate social assistance to those unable to support themselves and their dependants.
Section 28(1) sets out the rights of children with regard to among others, appropriate care, basic nutrition, shelter, healthcare and social services.

Furthermore, Schedule 4 of the Constitution identifies welfare services, population development and disaster management as functional areas of concurrent national and provincial legislative competence.
The Department executes its mandate and performance in line with guided the National Development Plan (NDP), Medium Term Strategic Framework (MTSF), State of Nation Address (SONA) and sector plans.

The South African social development sector delivers its services in an environment marked by high levels of poverty, unemployment and inequality.
However, the Department continues to lead government efforts to forge partnerships through which vulnerable individuals, groups and communities can become capable and self-reliant participants.

The United Nations (UN) defines self-reliance as the social and economic ability of an individual, a household or a community to 13 75 14 meet essential needs (including protection, food, water, shelter, personal safety, health and education) in a sustainable manner and with dignity.
It further states that self-reliance, as a programme approach, refers to developing and strengthening livelihoods of persons of concern, and reducing their vulnerability and long-term reliance on humanitarian/external assistance.

The overarching context in terms of which budgets were allocated for the 2021/22 financial year is that of budget cuts.

The 2021/22 budget cuts affected health, social grants, and basic education.
In the 2021 Estimates of National Expenditure (ENE), it was indicated that, over the medium term, the social grants budget will decrease by R36 billion, resulting in a real decrease in income for millions of social grants recipients.

This could simply suggest that the COVID special grant will be phased out again over time.

Therefore, the Department’s performance should be viewed under the above- mentioned conditions.
In terms of the financial performance for 2021/22, the DSD’s audit outcome regressed from an unqualified audit opinion without findings (clean audit) to an unqualified audit opinion with findings on performance information.

The Department managed to spend 99.2% of its adjusted budget with an under spending of R1.863 billion for the financial year.
In terms of planned targets for 2021/22 financial year, the Department only achieved 81% of its set targets (57 out of 67), which is the same compared to its target performance in the previous financial year (2020/21).

5.1 Financial Performance The DSD was allocated an adjustment budget of R234.97 billion in 2021/22.

The biggest component of this budget (R234.04 billion) was channelled towards transfers and subsidies.
This means that the Department was left with an operational budget of R463.1 million for the 2021/22 financial year.

The Department managed to spend 99.21% (R233.1 billion), which translated to an under-expenditure of R1.86 billion.
Table 2: Financial Performance 2021/22 Adjusted Budget Actual Expenditure % Final Budget R’000 2020/21 Actual expenditure % 14 76 15 Programme 1 474 797 472 269 99.47% 426 560 391 451 91.8% Programme 2 224 542 226 222 717 897 99.19% 220 606 557 218 945 760 99.2% Programme 3 8 072 401 8 052 807 99.76% 7 585 831 7 548 537 99.5% Programme 4 1 516 316 1 505 208 99.27% 1 842 277 1 718632 93.3% Programme 5 366 378 360 751 98.46% 346 073 318 322 92% TOTAL 234 972 118 233 108 932 99.21% 230 807 298 228 922 702 99.18% The main contributors to the under-expenditure of R1.86 billion for the 2021/22 financial year are as follows: • Social Assistance programme (R1.824 billion), • Social Security Policy and Administration (R19.59 million), • Welfare Services Policy Development and Implementation (R11.1 million), and • Social Policy and Integrated Service Delivery (R5.63 million).
The Department applied the following virement: Programme Programme 1: Administration Explanatory notes An amount of R56.885 million was approved to be shifted from Programme 3,4 and 5 to Programme 1 to fund the increased expenditure related to the increased payments of the Telkom Toll-Free line as a result of the extension of the SRD R350 Grant for the 2021/22 financial year as well as centralized payment of the information technology (IT) refresh in the procurement of two hundred and seventy-six (276) laptops for social development employees.
Programme 3: Social An amount of R5.059 million was approved to be Security Policy and shifted from Programme 3 to Programme 1: Administration Administration for increased spending programmes during the 2021/22 financial year.
Programme 4: Welfare An amount of R32.318 million was approved to be 15 77 16 Service Policy Development & shifted from Programme 4 to Programme 1: Administration for increased spending programmes Implementation Support during the 2021/22 financial year Programme 5: Social An amount of R19.508 million was approved to be Policy and Integrated shifted from Programme 5 to Programme 1: Service Delivery Administration for increased spending programmes during the 2021/22 financial year.
5.2 Programme performance 5.2.1 Overall performance The figure below represents a comparison of annual target performance of the Department from 2018/19 to 2021/22 financial year.

Figure 2: Comparative analysis of programme performance As the figure above illustrates, the Department was able to achieve 81% 2021/2022 of its set targets which shows a significant improvement in achievement of targets as compared to 73% and 49% in the 2018/19 and 2019/2020 financial years, respectively.
16 78 17 The achievement for 2021/22 mirrors that of the previous financial year.

achievement.

This is an indication that the Department may be starting to turn the corner in its performance, as was in 2017/18 financial year.

However, there is room for improvement.

5.2.2 Performance per programme Programme 1: Administration The purposed of this programme is to provide leadership, management and support services to the Department and the Social Sector.
The following table highlights expenditure and performance for the Administration Programme in 2021/22: Table 3: Financial and performance for Programme 1 Final Total budget appropriation spent Under/Over Expenditure Expenditure rate R474.797 million R472.269 million R2.528 million 99.46% No.

targets 13 No.

targets achieved 10 Targets not achieved 3 Success rate (%) 77%% The programme spent 99.46% against a budget of R474.7 million.
The underspending relates to staff turnover and operational savings during the financial year.

It achieved 10 out of the 13 planned performance targets for 2021/22 financial year, indicating a 77% success rate.

This is a slight improvement compared to the 75% success rate from the 2020/21 financial year.
The targets that were not achieved included: • The Department planned to reduce irregular expenditure by 3%, but it increased from R3.046 million in 2020/21 to R14.667 million in 2021/22, which is 381% increase.

The increase in irregular expenditure is in relation to non-compliance with SCM processes identified by AG during the 2021/22 audit of the Department.
17 79 18 • The annual target to develop and implement Shareholder Compacts in order to implement the Entity Governance and Oversight Framework was not achieved.

• The Development of the Substance Abuse System into Social Development Integrated Case Management System and the Development of the Alternative Care Management System into Social Development Integrated Case Management System (SDICMS) was not achieved as planned.
This is attributed to the delayed procurement processes and crafting of the contract led to delays in development of the system hence it was not finalised according to plan.

Programme 2: Social Assistance This programme provides social assistance to eligible beneficiaries in terms of the Social Assistance Act 13 of 2004, and its regulations.
The following table highlights expenditure for the Administration Programme in 2021/22: Table 4: Financial and performance for Programme 2 Final appropriation Total budget spent R224.542 billion R222.717 billion No.

targets No.

targets achieved 1 1 Under/Over Expenditure R1.824 billion Targets not achieved 0 Expenditure rate 99.19% Success rate (%) 100% The Programme’s initial (voted) allocation was R195.516 billion.
However, the Department received an additional R2.8 billion through the Special Appropriations Act, and R26.2 billion in the 2021 Adjusted Estimates of National Expenditure for the payment of the SRD R350 grant until March 2022.

Therefore, the Programme received a final appropriation of R224.542 billion, and spent R222.717 billion.

It underspent its allocated budget by R1.824 billion.
The under spending related to the Old Age and Child Support grants for which less than expected beneficiaries have applied during the financial year.

During the reporting period, the Department continued to expand access to social security through availing funds to the South African Social Security Agency (SASSA) monthly for the provision of social grants to eligible beneficiaries.
Programme 3: Social Security Policy and Administration 18 80 19 The purpose of this programme is to provide for social security policy development, administrative justice, the administration of social grants, and the reduction of incorrect benefit payments.

The table below highlights expenditure for the Administration Programme in 2021/22: Table 5: Financial and performance for Programme 3 Final appropriation R8.072 billion No.

targets 10 Total budget spent R8.052 billion No.


targets achieved 7 Under/Over Expenditure R19.5 million Targets not achieved 3 Expenditure rate 99.75% Success rate (%) 70% The programme had a final appropriation of R8.072.4 billion and spent 99.75%.
Underspending of R19.5 million was mainly due to the net effect of the non-establishment of the Inspectorate for Social Assistance as a result of the delay in the approval of the Social Assistance Bill in Cabinet during the 3rd quarter of the 2021/22 financial year.

It achieved 7 of the 10 planned performance targets for 2021/22 financial year.

This translate into 70% success rate.


The targets that were not achieved include: • The Department planned produce a consultation report on Green Paper on Comprehensive Social Security.

However, the Green Paper was withdrawn in the second quarter of 2021/22 to allow for further refinements to the contentious issues.

Some of the proposals were misrepresented.

• The Department planned to develop and publish draft Regulations on the amended Fund- Raising legislation for public comments.
This could not take place during the 2021/22 financial year because scheduled hearings on the Bill were postponed owing to local government elections.

• The Department planned to publish social budget bulletin (Edition 3).
However, the Department reported that delays were encountered in obtaining some COVID-19 related data such as general budget, private pensions, long-term insurance, private health medical schemes, public health, PIC investments, tax expenditure, social assistance, social insurance schemes, demography, and GDP.
19 81 20 Programme 4: Welfare Services Policy Development and Implementation The purpose of this programme is to create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices, and support implementing agencies.
The following table highlights expenditure for the Administration Programme in 2021/22: Table 6: Financial and performance for Programme 4 Final appropriation budget Total spent R1 516.3 billion R1 505.2 billion Under/Over Expenditure R11.1 million Expenditure rate 99.26% No.

targets No.

targets Targets not Success rate (%) 23 achieved 19 achieved 4 85% The programme had a final appropriation of R1.516 billion and managed to spend 99.26% of the total allocation.

It underspent by R11.108 million.


Underspending relates to the result of COVID-19 restrictions resulting in less travelling, accommodation and outreach programs for the financial year as well as payments to National Councils denied as a result of non-compliance.

This programme achieved 19 of the 23 planned targets for 2021/22 financial year.

This represented a success rate of 85%.

The targets that were not achieved include: • The DSD planned to submit the Social Service Practitioners Bill to Cabinet.
The Bill was not submitted to the Cabinet.

The Department indicated that the SEIAS report was developed and submitted to the Department of Planning, Monitoring and Evaluation for certification.

• The Department planned to amend the Older Persons Bill.

However, the Bill could not be tabled in Parliament before it was gazetted.

The Department indicated that the Bill was only gazetted in March 2022.

• The Department planned to submit the Victim Support Services (VSS) Bill to Cabinet for approval.
This was not achieved during the 2021/22 financial year.

20 82 21 • The Policy on Social Development Services to Persons with Disabilities was not submitted to Cabinet for approval as envisaged.

The Department indicated that this policy was not finalised and therefore not submitted to Cabinet for approval.
Programme 5: Social Policy and Integrated Service Delivery The purpose of this programme is to support community development and promote evidence-based policy making in the Department of Social Development Sector.

The table below highlights expenditure for the Administration Programme in 2021/22: Table 7: Financial and performance for Programme 4 Final Total budget appropriation spent Under/Over Expenditure Expenditure rate R366.378 million R360.751 million R5.627 million 98.46% No.

targets 20 No.
targets 20 No.

targets achieved 17 Targets not achieved 3 Success rate (%) 80% The Social Policy and Integrated Service Delivery Programme had a final appropriation of R366.378 million and spent 98.46%.

It underspent by R5.627 million.

The underspending related to operational savings on events and outreach programmes scheduled during the financial year as a result of COVID-19 restrictions.
The Social Policy and Integrated Service Delivery programme had a total of 20 targets for the 2021/22 financial year, of which it achieved 17 (or 80%).

The targets that were not achieved included: • The envisaged training of 92 municipalities on the Integrating of Migration issues into the IDP was not achieved.

• The capacitation of 9 provinces on the implementation of the integration of Population Policy into the District Development Model was not achieved as planned.
• The Department planned to table the non-profit organisation Amendment Bill to Parliament.

This target was not achieved during the 2021/22 financial year.

21 83 22 5.3 Human Resources The Department set a target of reviewing its vacancy rate from the 10% in 2020/21 financial year to 8% in 2021/22 financial year.

It reported that the target of 8% was met during the 2021/22 financial year, notwithstanding all the demand to focus on areas affected by the COVID-19 pandemic.
The filling of posts in the Department was largely influenced by the process it engaged on to review its strategy informed by various roundtable discussions, current policy and research.

The Department indicated that it had to fill critical posts due to the reduction in its compensation budget.

In so doing had to continuously embark on a prioritisation process to ensure that the compensation budget ceiling is adhered to and that there was no overspending.
During the 2021/22 financial year, the Department reported the employment of 3 348 Social Workers on contract by the provincial departments to continue providing psycho-social support to those affected and infected by COVID-19.

It requested additional funding for the employment of 2000 Social Workers for a period of ten (10) months.

However, the funding was only made available in October 2021.
This meant that the appointments could only be made for a period of four (4) months, whilst required to spend an allocation for ten (10) months.

Employment and Vacancies The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.
Table 8: Employment and vacancies by programme as on 31 March 2022 22 84 23 According to the table above, as reported on the 2021/22 annual report of the Department, the vacancy rate stood at 23%.

However, the Department argues that the actual vacancy rate in the Department is 8% based on its costing model.

The Department reported that the total number of approved posts is 766, of which there are 706 filled posts.
It argues that there are unfunded posts on PERSAL which creates a skewed vacancy rate of 23%.

These posts are on PERSAL to inform the prioritisation process the Department follows when filling critical posts.

It would be easier to fill posts when they are prioritised rather than recreating them if abolished.
Department’s employment equity Table 9: Total number of employees (including employees with disabilities) The table above highlights the number of DSD employees by race and gender, as well as employees with disabilities.

Of the 755 employees of the Department, 265 were males and 490 females.

Breakdown of 265 male 65 male employees: 258 African, 2 Coloured, 5 Indians, and 10 whites.

Breakdown of 490 females in the employ of the Department: 448 Africans, 15 Coloured, 8 Indians, and 19 whites.
The Department employed about 13 employees with disabilities.

Of these, are 5 African males and 7 African females.

There is only 1 White male.

The number of employees with disabilities in the 23 85 24 Department only increase by 1 compared to the previous financial year, wherein the Department had a total of 12 employees with disabilities.

7.
7.

THE SOUTH AFRICA SOCAL SECURITY AGENCY (SASSA) The mandate for the South African Social Security Agency (SASSA) is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.

As per this mandate, SASSA is primarily responsible for implementing the Medium Term Strategic Framework’s (2020 – 2025) Priority 3: Consolidating the Social Wage through Reliable and Quality Basic Services.
It continues to improve the coverage of the social assistance programme including for eligible refugees.

For the year under review, SASSA increased the coverage of the social assistance programme from 18 440 572 to 18 677 339.

SASSA also has a role to play in the implementation of the National Development Plan (NDP) priorities for the social sector.
It implements the following priorities: • Creating a comprehensive social protection system to support those most in need, including children, people with disabilities and the elderly.

• Protection of vulnerable groups and citizens against worst effects of poverty by 2030.
• Active participation in the economy and society for those who are unemployed and under- employed through labour market activation measures, employment services, income support programmes and other services to sustain and improve quality of life.

• Improving efficiency in the delivery of services, addressing exclusions by identifying and reaching those who are entitled to the existing benefits of social protection, reducing the administrative bottlenecks that prevent people from accessing benefits.
Furthermore, SASSA has a critical role to play in implementing the annual priorities identified in the State of the Nation Addresses (SONA), mentioned earlier in the report.

Since the outbreak of the Covid 19 pandemic in 2020, SASSA was tasked with administration and payment of the Special Covid 19 Social Relief of Distress Grant (SRD grant) to the unemployed 24 86 25 South Africans of working age, 18 – 59 years.
Amidst all the challenges of implementing this grant, by the end of March 2022 more than 10.2 million beneficiaries were in receipt of the grant.

7.1 OVERVIEW OF FINANCIAL AND NON-FINANCIAL PERFORMANCE OF THE SOUTH AFRICAN SOCIAL SECURITY AGENCY (SASSA) FOR 2020/2021 FINANCIAL YEAR 7.1.1 Financial Performance SASSA functions through two main programmes, namely, Programme 1: Administration and Programme 2: Benefits Administration & Support.
Table 10 below shows that the overall budget of SASSA for the period under review was R7 963 901 billion, which was an increase from R7 488 782 billion in 2020/2021 financial year.

The table also shows that both programmes underspent by R628 945 million, resulting in overall 92% annual expenditure of the Agency.

Compared to 2020/2021 financial year, the Agency had a significant underspending in Programme 2 in 2021/2022 financial year, which was 90% (99% in 2020/2021).
Table 10: Budget expenditure per programme, 2021/2022 2021/22 2020/21 Programme R’000 Administration Benefits Administration & Support Total Final Actual Variance % % Appropriation Expenditure Expenditure Expenditure R’000 2 990 666 4 973 235 R’000 2 875 203 4 459 753 R’000 -115 463 -513 482 96% 90% 93% 99% 7 963 901 7 334 956 -628 945 92% 96.% Underspending was attributed to to the item, Compensation of Employees (CoE) mainly due to the funded vacant positions that could not be filled or filled in the latter part of the 25 87 26 financial year.
Out of a total of 247 funded vacant posts which were planned to be filled in 2021/22, a total of 192 posts were filled representing 77%.

The average monthly spending for the year on Compensation of Employees was R274 673 990.

It was also attributed to the item, Goods and Services on cash handling fees as the majority of the beneficiaries opted to receive their benefits through ATMs and the merchants’ point of sale (POS) and thus reducing the cost of paying the grants.
Secondly, there was an upward adjustment of the budget emanating from the additional R500 million received through the Adjusted Appropriation Bill process which could not be utilised fully.

Expenditure on Goods and Services reached 92% which was 9% below the level of expected level of spending.
There was also underspending of 72% on communication and this was due to the expenditure on bulk messaging which was part of the cost of implementing the COVID-19 special relief grant (R350), this item was adjusted with additional funding, however, the budget was not fully utilised.

The expenditure on telephones decreased due to the COVID-19 pandemic, consequently the convergence of ICT infrastructure whereby calls between SASSA offices were using data infrastructure and were zero-rated.
However, mobile data (3G/4G/5G) costs increased as digital workspace (remote work and online meetings) is the “new normal” due to remote work and online meetings.

The Agency also had underspending on funds that were earmarked for fraud investigations that were not fully utilised as it realised efficiency in utilizing its internal capacity related to fraud prevention, detection, and investigation unlike in the previous financial years when third parties were brought on board.
There was low spending on fleet, maintenance and repairs, travel, training and staff development, and venues and facilities which resulted from the impact of the COVID-19 pandemic on the activities associated with these items.

7.1.2 Non-financial performance Figure 3 below shows SASSA’s performance trends between 2019/21 and 2021/2022 financial years.

For both the 2019/2020 and 2020/2021 financial years, SASSA had 74% achievement of targets compared to 73% in 2021/2022 financial year.
Programme 1 had a total of 26 set 26 88 27 targets and managed to achieve 19 targets, marking 73% achievement rate.

Programme 2 managed to achieve 10 targets out of 14 set targets, marking 71% achievement rate.

Figure 3: Performance Trends 7.1.3 Performance information by programme Analysis of the Agency’s performance will be based on the achievement of the priorities of the NDP and the MTEF mentioned earlier as well as the 2021 State of the Nation Address priorities.
Programme 1: Administration The purpose of this programme is to provide leadership, management and support services to SASSA.

Table 11: Programme 1 targets and financial performance Total targets in Annual Report Targets achieved in Annual Report Targets not achieved Performance success rate Total budget spent Financial expenditure rate 26 19 7 73.% R2 875 203 billion 96% 27 89 28 Under this programme, SASSA had planned to achieve 26 targets and it managed to achieve 19 targets (73%).
The overall expenditure for the programme stood at 96%.

This programme mainly contributes to the following NDP targets: • Improving efficiency in the delivery of services, addressing exclusions by identifying and reaching those who are entitled to the existing benefits of social protection, reducing the administrative bottlenecks that prevent people from accessing benefits.
The key targets achieved related to this priority include 100% payment of eligible suppliers within 30 days as per Treasury Regulation 8.2.
3; implementation of organisational transformation interventions through Change Management and Culture Survey; referral of the database of all grant beneficiaries (559 646) who were registered for Matric in 2021 to National Student Financial Aid Scheme (NSFAS) and to the Department of Social Development to ensure that these beneficiaries are not subjected to further means test when applying for financial aid to study further; implementation of the online grants application solution in all nine regional SASSA offices for the Child Support Grant (CSG), Foster Child Grant (FCG), Old Age Grant (OAG) and the Social Relief of Distress grant (SRD) and implementation of the online booking system for medical assessments for the Temporary Disability Grant (TDG).
Key to the improving efficiency in the service delivery involves elimination of fraud and corruption as well as irregular expenditure.

SASSA has over the years had serious challenge of high levels of fraud and corruption in the administration and payment of social grants.

It also continues to high levels of irregular expenditure dating back to 2012/2013 financial year (backlog cases) and annual irregular expenditure.
For the year under review, it achieved its target of detecting suspected fraud cases and referring them to stakeholders – Grant Administration, South African Post Office (SAPO) and Banks, for corrective action.

It over achieved its target of investigating and finalising 70% of reported cases of fraud and corruption by reaching 95% performance rate.

It also over achieved its target of finalising 60% of labour relations cases by reaching 80.27% performance rate.
It also had an over achievement on its target to finalise 75% of financial misconduct cases within 120 days by finalising 91.74%.

28 90 29 The Agency however did not achieve its target of reducing irregular expenditure by 75%.

It only reduced it by 55%.

In 2020/2021 financial year it incurred R20.3 million irregular expenditure and R2.025 million in 2021/2022 financial year.

Combined with historical irregular expenditure, SASSA’s irregular expenditure amounted to R993 661 million.
Further related to improving efficiency of service delivery is SASSA’s capability to recover and/or write off social assistance debts.

A target of recovering and/or writing off 5% of social assistance debts was not achieved.

Only 1.07% (R7 942 million out of R741 778 million) of debts was recovered.

Programme 2: Benefits Administration and Administration and Support The purpose of this programme is provide a grant administration service and ensures that operations within SASSA are integrated.
It also ensures implementation of the full value chain of grants administration.

Table 12: Programme 2 targets and financial performance Total targets in Annual Report Targets achieved in Annual Report Targets not achieved Performance success rate Total budget spent Financial expenditure rate 14 10 4 71% R4 459 753 billion 90% For the year under review SASSA had set to achieve 14 targets under this programme.

It managed to achieve 10 targets (71%).

It spent 90% of its allocated budget.


This Programme contributes towards achievement of the following government priorities (encompassing SONA and NDP priorities): • Protection of vulnerable groups and citizens against worst effects of poverty by 2030.

29 91 30 The Social Assistance Programme continues to play an important role in the protection of vulnerable groups from the effects of food insecurity and hunger.
Of the total grants in payment, 83.06% (10 622 million) are women, 32.5% (4 165 million) are youth and 7.85% (1 million) are people with disabilities.

The Agency had set some targets for the year under review that contribute towards the achievement of the NDP priority mentioned above.

One of them, even though not achieved, related to having 580 000 children below the age of 1 receiving children’s grants.

It only managed to reach 544 237 children, marking 93.83% achievement rate.
Northern Cape and Western Cape had the lowest numbers, 14 205 and 21 796, respectively.

• Active participation in the economy and society for those who are unemployed and under-employed through labour market activation measures, employment services, income support programmes and other services to sustain and improve quality of life.

SASSA through the Social Relief of Distress (SRD) programme contributes towards local economic development by awarding SRD rand value to cooperatives and SMMEs.
Even though the target to award 30% (R117 million) of total SRD rand value through cooperatives and SMMEs was not achieved, SASSA managed to award 21.50% (84 million of R391 million).

With the introduction of the Special Covid 19 SRD grant, government aimed to provide income support to the unemployed 18-59 year olds (working age).

SASSA was tasked to administer and pay the grant.

For the year under review, it did not meet its target of processing 100% of the SRD grant.
A total of 126 685 460 cumulative applications were receive and 124 204 429 were processed, representing 98.04% of applications received.

This figure included asylum seekers and special permit holders.

SASSA reported that the 126 685 470 cumulative applications received, consisted of 10 000 663 for April 2021 and an additional 116 684 807 for August 2021 to March 2022.
All COVID-19 Special Relief grant (R350) applications received by SASSA on a monthly basis, including existing, ones were considered as new and subjected to a verification process.

This resulted in 126 685 470 cumulative applications received and 124 204 429 of those were processed.

The target was therefore not achieved because applications that were referred for further investigation could 30 92 31 not be finalized.
On the finalized applications, SASSA paid 83 708 988 (97.61%) beneficiaries by the end of March 2022.

• Improving efficiency in the delivery of services, addressing exclusions by identifying and reaching those who are entitled to the existing benefits of social protection, reducing the administrative bottlenecks that prevent people from accessing benefits.

SASSA set 5 targets under this programme that contributes towards achievement of this priority.
It set and achieved a target to interface with the Department of Labour and Employment (UIF), Government Pension Administration Agency (GPAA), NSFAS and the Department of Correctional Services to verify income means.

For the year under review the focus was on signing Memorandum of Understanding (MOU’s) with these institutions and sharing of the information that was used to validate Covid 19 SRD grants applications.

It also set and achieved a target to process 95% of new grant applications within 10 days.
A total of 1 706 158 out of 1 740 896 applications were processed, marking 98.08% performance rate.

It further set and achieved a target to resolve 90% of enquiries within 10 days.

It resolved 551 430 out of 562 366 received enquiries, representing 98.06% achievement rate.

It over achieved the target to resolve 60% of disputes within 14 days.

It resolved 21 378 out of 22 649 disputes, representing 94.39% achievement rate.
Most importantly, a target to monitor social grants payments on a monthly basis across all payment platforms was achieved.

This was an important target as in the past there were a number of instances where beneficiaries were either not paid their grants, not paid in time or double payments were made to the same beneficiary.

To improve customer care to people with disabilities, the Agency achieved its target of reviewing its Disability Management Model.
This is an important target because people with disabilities in most times feel marginalized and their needs not taken care off.

31 93 32 7.3 Human Resources Vacancies For the year under review SASSA had a vacancy rate of 58.7% (10 983 vacancies), which was based on the total posts on the establishment.

This number included both funded and unfunded posts.

SASSA planned to fill 247 vacant funded posts but managed to fill 192 posts representing 77% achievement.
The highest vacancies at the Head Office were in Fraud and Compliance (77.5%), Strategy and Business Development (77.1%) and Chief Operations Management (73.3%).

With regard to vacancies per occupational group, Skilled group had the highest vacancy rate of 64.6%, followed by Semi-Skilled at 56.3% then Top Management at 55.6% Employment Equity (EE) The Overall EE targets were not achieved due to reprioritisation of vacant funded positions and organizational reengineering.
Disability targets were set at 3% of the total funded positions across occupational levels, the total current workforce is 7 742 inclusive of 188 employees with disabilities, which means 2.4% of the disability target was achieved during this reporting period.

8.
8.

THE NATIONAL DEVELOPMENT AGENCY (NDA) MANDATE The National Development Agency (NDA) is mandated to contribute towards the eradication of poverty through supporting civil society organisations (CSOs) by funding them to implement development projects in poor communities, as well as strengthening their institutional capacity.

However, the triple challenges of poverty, inequality and unemployment continue to ravage South Africa; more so during the COVID-19 pandemic.
National Development Plan 32 94 33 The NDA, as a public entity, reporting to the Department of Social Development, has aligned its strategy to respond mainly to chapter 11 of the NDP on social protection.

The NDP vision 2030 has a long-term perspective to eliminate poverty, reduce inequality and unemployment by 2030.

The alignment is informed by the NDA mandate of contributing towards the eradication of poverty in poor communities.
Medium Term Strategic Framework (MTSF) The NDA has adopted MTSF that focuses on civil society organisations in the most deprived and prioritised districts in South Africa, and its main contribution will be building capacity at these organisations.

The strategy is based on the NDA integrating its work with the social development sector, municipalities, and other public and private agencies that work with communities and civil society organisations.
During the 2021/22, the NDA created 750 job opportunities, which were mainly accessed by the unemployed in the deprived communities.

Furthermore, during this year, the NDA reported that caregivers were linked to economic opportunities and this increased their development prospects.

This allowed children within the ECD centre to access ECD services that meets the norms and standards of the sector.

The NDA raised R54.5 million against an annual target of R20 million during 2021/2022 financial year.
This was achieved, despite the poor economic challenges occasioned by the COVID-19 pandemic.

This extra ordinary performance was achieved largely as a result of building beneficial partnerships with corporates such Harmony Gold, Anglo American (Kolomela and Assmang mine), as well the Eskom Foundation and the National Treasury.

Sustainable Development Goals South Africa is a signatory to the United Nations (UN) Sustainable Development Goals (SDGs).
The 2030 Agenda acknowledges that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development.

SDG1 aims at ending poverty in all its forms.


Its seven associated targets aims, among others, to eradicate extreme poverty for all people everywhere, reduce at least by half the proportion of men, women and children of all ages 33 95 34 living in poverty, implement nationally appropriate social protection systems and measures for all, and by 2030 achieve substantial coverage of the poor and the vulnerable.
The NDA priorities are aligned to the strategic objectives of the SDGs, especially in the area of grant funding for struggling CSOs.

Such funding enables CSOs to implement poverty relief programmes.

The NDA funded a total of 88 CSOs to the value of R13.3 million, from its own funding during the 2021/22 financial year, enabling CSOs to address poverty relief to the vulnerable and poor in society.
State of the Nation Address 2021 The NDA also contributes to the 2021 SONA priorities outlined earlier in the report.

During 2021/22 financial year, the NDA successfully submitted a request for condonation of R98.8 million by National Treasury.

This followed a vigorous process that started in the 2020/21 financial year and culminated in the subsequent removal of this historical irregular expenditure, during the year under review.
The NDA, through the DSD or CARA Victim Empowerment Programme, continued to disburse funds to CSOs involved in Gender-Based Violence and Femicide (GBVF) in order to continue services in communities.

During 2021/22, R24.6 million was disbursed to CSOs participating in these programmes.
8.1 OVERVIEW OF FINANCIAL AND NON-FINANCIAL PERFORMANCE OF THE NATIONAL DEVELOPMENT AGENCY (NDA) 2021/2022 FINANCIAL YEAR 8.1.1 Financial Performance Table 13: Appropriation statement Programme 2021/22 2020/21 Final Actual Under/ Final Actual Over/ Budget Spending Over Budget Spending under spending spending R’000 Governance and Administration 123 719 106 219 17 500 102 682 90 284 12 398 34 96 35 CSO Development Research and 138 740 116 007 22 733 224 883 165 587 59 296 Development 10 987 7 496 3 491 7 228 6 499 729 TOTAL 273 446 229 722 43 724 334 793 262 370 72 423 The NDA secured a final appropriation amounting to R273.5 million for 2021/22.
Expenditure amounted to R229.7 million, resulting in under-expenditure of R43.7 million.

Although overall expenditure for 2021/22 stands at 84%, it is a significant improvement from the 78.4% attained the previous year (2020/21).

Spending for both the Governance and CSO Development programmes were in the mid 80%’s, while the Research and Development programme spent only 68.2% of its allocation – compared to 89.9% previously.
The CSO Development programme is critical in the fulfilment of the NDA primary mandate.

This programme contributes directly to the NDP aspiration of eliminating poverty and reducing inequality by 2030.

While its spending increased with 10% from the previous year, given its critical mandate, the attainment of 83.7% for 2021/22 requires closer monitoring.
Table 14: Statement of Financial Position as at 31 March 2022 ASSETS Current Assets Non-current Assets Total Assets LIABILITIES Current Liabilities Total Liabilities Net Assets 2021/22 2020/21 150,248,825 127 319,835 8,356,833 10,434,565 158,605,658 137,754,400 79,118,916 79,118,916 79,486,742 104,133,616 104,133,616 33,620,784 Accumulated Surplus 79,486,742 33,620,784 35 97 36 There was a significant decrease in the entity’s liabilities of R79.1 million (compared to R104.1 million previously).
This was due to a decline in deferred income (or funds from third parties that remain unutilised by end of financial year) received by the entity.

Deferred income for 2021/22 related to, amongst others, funds received from the DSD for CARA funding for CSO involved in GBVF (R26.8 million), COVID-19 stipends earned by learners for UIF before the March 2020 lockdown and thus unable to attend lectures for a 3-month period (R5 million), etc.
Current assets increased to R150.3 million from R127.3 million, in the previously financial year.

The increase in current assets included cash and cash equivalents for funds already committed to projects, cash balances held on behalf of third parties (deferred income), and funds committed to the operations of the entity.

The NDA ended the 2020/21 financial year with an accumulated surplus of R79.4 million, compared to R33.6 million at the end of the previous financial year (Table 14 above).
Table 15: Statement of Financial Performance as at 31 March 2022 Revenue 2021/22 2020/21 Non-exchange revenue 270,803,243 271,102,295 Exchange revenue Total revenue EXPENDITURE Mandate expenses 4,775,364 6,361,209 275,578,607 277,463,504 (123,502,439) (172,085,801) Administration expenses (106,219,184) (90,283,907) Total expenditure (229,721,623) (262,369,708) Surplus (Deficit) 45,856,984 15,093,796 Revenue remained steady though revenue from exchange revenue declined from R6.4 million in 2020/21 to R4.8 million (approximately 25 percent year on year).
Expenditure declined from R262.4 million to R229.7 million (approximately 12.4 percent).

The decline in the 36 98 37 entity’s expenditure for the financial year related mainly to spending for training third parties (venue and related expenses, as well as UIF COVID-19 stipends for attendees).

This resulted in the surplus growing from R15.1 million to R45.9 million; a threefold increase.

8.1.2 Non-financial performance The NDA set itself a total of 12 targets in its APP 2021/22.
It managed to fully achieve 10 targets (83%), while 2 (17%) targets were not achieved.

The below section illustrates the NDA’s target performance per programme for the 2021/22 financial year.
Programme 1: Governance and Administration Table 16: Programme 1: Achievement of targets Total targets set on Revised Annual Performance Plan (APP) Total targets reflecting on the Annual Report Targets achieved in Annual Report Targets not achieved Total budget spent 5 5 3 (60% success rate) 2 R 106.2 million The NDA had set to achieve 5 targets under this Programme and managed to achieve 3 targets with an actual expenditure of R106.2 million during 2021/22 financial year.
The two (2) performance targets that were not achieved under the programme during the year under review included: • Achievement of 56.3% instead of 80% reduction in irregular, fruitless and wasteful expenditure.

• Development of integrated portal for CSOs.

This activity again had to be delayed due to the expected impact of the turnaround strategy on NDA CSOs development programme and IT systems designs.
Despite the above-mentioned performance, the NDA managed to achieve three of the most important targets.

These include: 37 99 38 • The NDA set itself a target of implementing 30% skills audit recommendations and exceeded this target by implementing 38%.

This was due to availability of budget and human resources (HR) capacity to help.

• The NDA revised strategy was approved by the Interim Accounting Authority in line with the Turnaround Strategy.
• State and CSO Partnership Model was developed and approved by the Interim Accounting Authority.

Programme 2: CSO Development Table 17: Programme 2: Achievement of targets Total targets set on Revised Annual Performance Plan (APP) Total targets reflecting on the Annual Report Targets achieved in Annual Report Targets not achieved Total budget spent 4 4 4 (100% success rate) 0 R116.

million The programme had a good performance wherein all 4 targets were achieved or over achieved in 2021/22.
Some of the important targets achieved: • In terms of Resources Mobilisation NDA, managed to overachieved its planned target of raising R20 million by raising a total amount of R54.6 million.

This has allowed the NDA to fund the CSOs’ development interventions.
• The other important targets (which relate to the NDP) achieved include 750 (as opposed to 500 planned target) work opportunities created as a result of CSOs development interventions and 2558 (as opposed to 1800 planned target) CSOs capacitated to strengthen its institutional capacity.
Programme 3: Research and Development Management Table 18: Programme 2: Achievement of targets 38 100 39 Total targets set on Revised Annual Performance Plan (APP) Total targets reflecting on the Annual Report Targets achieved in Annual Report Targets not achieved Total budget spent 3 3 3 (100% success rate) 0 R7.496 million NDA achieved all targets set for this programme in 2021/22.

Most importantly, the NDA completed three (3) research publications undertaken to provide a basis for development policy.
The NDP affirms the importance of social cohesion in order for the country to achieve unity among its citizens.

8.3 Human Resources The NDA has five divisions that implement both the primary and secondary mandates.

These are: • Development Management & Research, • Finance, • Office of the COO, • Office of the CEO, and • Corporate Services Support.

Table 19: Personnel cost by programme Programme Total Staff spend Staff No.
of Average spending for (R’000) spend as staff cost per the entity (R’000) % of total spend Governance and Administration CSO Development 106 219 116 007 Research and Development 7 496 54 575 71 959 5 737 24% 31% 3% 64 116 7 staff member (R’000) 853 620 820 Management TOTAL 229 722 132 271 58% 187 707 000 • Personnel spending constituted 58% of the overall NDA budget for 2021/22.

• Spending of personnel rated cost was R132.3 million in 2021/22.
39 101 40 • The entity employed about 187 staff members, the majority of which are located in the CSO Development programme (which also yields the lowest spending per employee- of all three programmes).

• The average cost per employee was highest in the Governance and Administration programme.

9.

COMMITTEE OBSERVATIONS ON THE SOCIAL DEVELOMENT PORTFOLIO 9.1.

Department of Social Development • Financial performance: The Committee noted with concern the drastic increase in irregular expenditure from R3.
046 million in 2020/2021 financial year to R14.7 million in 2021/2022 financial year.

It wanted to know the reasons behind this sharp increase and how the Department aims to address this.

It also noted with concern the Auditor-General’s concern on the financial viability of the Department due to its total liabilities exceeding its total assets.

Meaning that the Department many not have enough cash to cover its liabilities.
The Committee wanted to know if the Department has any concerns regarding its financial viability?

It also observed the drastic increase on spending or transfer to SASSA in the months of February and March 2022 for the administration and payment of social grants beneficiaries.

In the prior months, total transfers ranged around R16 billion.

For the months in question transfers increased to R29 billion.

It wanted to know the reasons behind this sharp increase.
The Committee questioned the Department’s expenditure of 99% even though it did not achieve all of its set targets in 4 of its programmes.

Related to this, the Committee also questioned the shifting of funds from 4 Programmes to Programme 1 to fund the increased expenditure related to the increased payments for the Telkom Toll Free line and for the procurement of 276 laptops for the social development employees.
Programme 4 had the 40 102 41 highest amounted of R32.218 million shifted, despite it being core Programme of the Department.

It wanted to know why the funds were not shifted from Households economic classification?

With regard to irregular, fruitless and wasteful expenditure due to non-compliance to the Public Finance Management Act (PFMA), the Committee felt strongly that the implicated employees should be named.

It wanted to know the process involved in recovering the funds?
With regard to increase in irregular expenditure, the Department reported that it procured a batch of 276 laptops through a SITA transversal contract, SITA 2005-2015, which started in late 2020.

This required a tender process to be followed since the amount was more than R1 million.

Unfortunately, that transversal contract ended on the 30 April 2021 and the Department had already started with the procurement prior to the valid contract.
The Department could only appoint a service provider in August 2021 due to the large number of laptops required to provide this requirement, when the contract had already expired.

At the time of appointment there was a new SITA RFB 740 transversal contract.

The AGSA classified the procurement as irregular due to the fact that at the time of appointment, the contract had already expired.
As a result of the urgent procurement, the Department could not re-start the process based on the new transversal contract.

AGSA has found this appointment as “Irregular Expenditure” since contract was awarded on an expired contract.

All the laptops were received by the Department prior to the payment.

There was no financial loss suffered by the Department as no expenditure was made for services not received The Department is not worried about its financial viability as it is financially viable.
The R15 billion overdraft was as a result of an instruction the Department was given to pay social grants a month earlier (30 March 2020) before the start of the 2021 financial year.

It then had to pay from the overdraft.

This was approved by National Treasury.

This matter was about an accounting entry that needs to be corrected by National Treasury.
41 103 42 With regard to shifting of funds between programmes, the Department explained that according to National Treasury regulations the departments cannot shift funds from Households, Capital or Compensation of Employees economic classifications.

Pertaining to disjuncture between financial expenditure and achievement of targets, the Department explained that the majority of targets that were not met were policy related matters.

Work was done and money was spent towards meeting those targets.
• Consequence management: The Committee reiterated its concern over the lack of consequence management for financial misconduct cases – irregular, wasteful and fruitless expenditure.

This is a recurring audit finding over the past financial years.

There have been no reports of arrests of implicated officials.

The Committee wanted to know what the Department was doing to foster the culture of consequence management in the social development portfolio.
• Auditor-General (AG) findings and recommendations: The Committee wanted to know the number of AGSA’s recommendations that were implemented and not implemented by the Department.

In its future annual performance reports it should include responses to the findings of AGSA and recommendations.

The Committee also wanted to know how many state officials were found to be doing business with the Department?
The Department reported that there were three (3) officials who did business with the state, one passed away.

NPO sector: The Committee raised a number of concerns regarding funding and compliance of the NPO sector to the Nonprofit Organisation Act (NPO Act).

There is a large number of NPOs that are not complying.

What monitoring and evaluation mechanism is in place to ensure that these NPOs do their work and spend the allocated funds on the services they are supposed to render.
This is important considering the latest reports of NPOs involved in money laundering.

The Committee noted with concern that there was only 89% spending on Non-Profit Institutions economic classification and wanted to know reasons behind that.

It also noted that R4 000 million was returned to National Treasury because of NPOs that were not funded.

Funding of NPOs and their compliance require the Committee’s serious oversight because they render essential services on behalf of the Department.
42 104 43 With regard to the Department’s decision to withdraw funding of the non-compliant NPOs, the Committee felt that there is no enough focus on the impact of this decision.

It wanted to know how does the Department make sure that the services these NPOs were rendering continue to be delivered?
The Committee noted the development of the NPO payment system to assist NPOs and Provinces to transfer funds in time but wanted to know if there is a mechanism in the system that prevents it from just being a tick box exercise.

How does the Department make sure that quality work was done?

The Department explained that the issue of NPO compliance means that it registers all NPOs across government departments according to the NPO Act and it keeps a database.
There are 256 212 registered NPOs and 148 000 of them are not in compliance.

Ninety-two thousand (92 000) of them within the social service sector are not funded.

Thirty thousand (30 000) NPOs are funded.

The Act states in section 17 and 18 that NPOs are required to report to the Director at national DSD.

They are given 30 days to respond to the Department in cases of non-compliance.

The Department has been running an awareness campaign, “Know your status” to alert the NPOs on importance of compliance.
There are 56 000 dormant NPOs (never reported) that will be deregistered.

NPOs are supposed to report on quarterly bases before they are funded.

In the absence of the quarterly reports, the provincial department cannot transfer funds.

The Department uses officials, such as Social Workers and Community Development Workers, to conduct site visits to the NPOs to verify that they do their work.
Thus the Department conducts verification in two phases, when NPOs apply for funding they are verified to ascertain if they are registered or not and thereafter their compliance is monitored on a quarterly basis.

• Performance information: The Committee expressed a serious concern that Programme 4 did not achieve all of its set targets and wanted to know the reasons for that.
The Committee pointed out that, it does not only conduct oversight over the performance of the Department through its committee meetings but also through its constituency work.

Through the latter, Members always find that what is presented to the Committee is not what is happening on 43 105 44 the ground.

There is no impact of the implementation of programmes and services.

The environment at the ground is quiet combustible and that concerns the Members.
The Committee has also found that the provincial service desks are not functioning and wanted to know what interventions have been put in place to address this.

The Department explained that targets that were not achieved in Programme 4 were targets that were beyond the control of the sub-directorate.

These were targets related to the Bills that depend on other organs of state.

Targets linked to service delivery were all achieved.
It however, acknowledged that what is on paper does not always become immediately evident on the ground.

The Department needs to work on its impact assessment but in some instances it takes time for the impact to be realised.

• ICT and technology: There were significant investments that were made in 2020/21 on ICT and technology.

The Committee wanted to know how much were these investments in rand value?
• Vacancies: The Committee sought clarity on the reported 23% vacancy rate in the annual report and by AGSA, whilst its argument is that the vacancy rate is at 8%.

It further wanted know progress made in filling the vacant posts in senior management, which stands at 36%.

It also wanted to know the reasons the timeframes that were given to the Committee previously to fill key vacant posts were not met.

The Department maintained that the vacancy rate is 8%.
The position of Director-General was advertised and the recruitment process is underway.

With the budget cuts the Department had to prioritise the filling of some of the vacant posts.

• SRD grant payment: The Committee sought clarity on the actual number of beneficiaries in receipt of the SRD grant.

The Minister had previously reported that there were 7.2 million beneficiaries receiving the grant but the presentation reported on 10.9 million.
The Committee also queried the R150 million worth of the SRD grant that was paid to people who were already in the employment of the Department of Basic Education.

It wanted to know how this money was going to be recouped.

44 106 45 The Department reported that there were 7.2 million SRD grant beneficiaries and the target was to reach 10 million beneficiaries, however SASSA is in a better position to provide the accurate statistics.
• Legislation and policies: The Committee wanted to know the current status of the Victim Support Bill since the Department received feedback and recommendations from the Office of the Chief State Law Advisor (OCSLA) and if it will be finalised in 2023/2024 financial year.

The Committee also wanted to know the current status of the Green Paper on Comprehensive Social Security and the reason it was withdrawn.
The Department explained that the finalisation of the Victim Support Bill was delayed because there was a lot of consultation that needed to be made.

The Green Paper made some recommendation around introduction of mandatory contributions and this attracted a lot of controversy.

This suggested that there was a lack of understanding on the intentions of the proposals.

The Paper was then withdrawn in order to clarify the proposals made and the relationship between monetary contributions and taxes.
The proposed National Social Development Fund will also have far reaching implications that also needed to be clarified.

These are proposals that members of the public will need to be engaged on as some may be reluctant to make contributions due to their financial hardships.

• Monitoring and evaluation and performance reporting: The Committee questioned the report that the electronic monitoring and evaluation (M&E) system is a three (3) year process.
This contradicts what the minister had previously told the Committee that she believed the Department needs a strong M&E system.

The Department explained that it has always had a monitoring and evaluation system.

The new system provides real time electronic monitoring and is integrated with the provincial departments.

This will result in a centralised database for real time reporting.

The Department had to complete the business processes and consultations.
The system was developed and from end of October 2022 it will be piloted in KwaZulu-Natal, Gauteng Province and Eastern Cape.

It will be fully implemented by the end of 2022/2023 financial year.

• Employment of Social Workers: With the additional funding for social workers, the Committee wanted to know if is there is a plan to make their employment permanent.
45 107 46 • ECD: The Committee queried the accuracy and true reflection of the reported 1.4 million children receiving ECD services especially that a number of ECDs closed down during Covid 19 lockdown and a number of children did not return.

• Parliament oversight role: The Committee noted with concern that there seems be a lack of understanding or wilful ignorance by provincial officials, especially in the Western Cape, of the constitutional oversight role of Parliament.
This was demonstrated by the failure to respond to queries or deliberate stonewalling.

The Department was advised to address this with its provincial departments.

• Central Drug Authority (CDA): The Committee sought clarity on how the work of the CDA is reported?

The Department explained that the CDA is an independent body and reports to the Minister but submits its annual report to Parliament.
• Updated database for SRD grant applications: The Department has a responsibility to conduct oversight over its entities, is it going to oversee SASSA to ensure that it receives updated databases?

9.2 South African Social Security Agency • SRD grant: The Committee asked various questions in relation to the SRD grant.
They included use of smartphones to access the grant; outstanding appeals, backlog in the payment of the grant; short and long term interventions to address the backlog, lessons learnt in the implementation of the grant; recovery of monies paid to ineligible beneficiaries through the SRD grant; number of state officials who received the grant and delays experienced due outdated databases and how this is going to be addressed.
SASSA explained that beneficiaries who do not have smartphones, their grants are deposited directly into their bank accounts and the vast majority choose this method.

Those who do not have bank accounts, their social grants are paid though Postbank and can be withdrawn from the merchants.

With regard to public servant who benefitted from the SRD grant, SASSA explained that it follows a three-pronged approach - disciplinary actions, loss recovery and criminal 46 108 47 prosecution.
SASSA has contacted all the affected departments and requested them to institute loss recovery and institute disciplinary hearings.

Thus for disciplinary hearings and loss recovery SASSA depends on the affected departments.

A total of 628 cases were referred for criminal investigations because they had criminal elements.

SASSA also works in partnership with the National Prosecuting Authority (NPA) and the South African Police Service (SAPS) to ensure successful prosecution.
SASSA has in recent years been meeting its target of processing 95% of social grant applications within five (5) days.

The challenge has been migration to the new electronic system since Covid 19, particularly for SRD grant application processes.

It has been facing challenges of delayed submission of the database by the Unemployment Insurance Fund (UIF).

For instance, an updated database has not been forwarded since June 2022.

This has caused delays in the payments for September month.
SASSA has now taken a decision to continue using the existing UIF database for September payments, even though this may result in an audit query.

The challenge has been that there is no up to date and fully accurate record of UIF membership because some employers do not timeously update their employment records.

The same applies with the Department of Home Affairs database on marital status of beneficiaries.

Some of them do not inform the Department when they have divorced.
However, it can be said that the databases are almost 95% accurate.

This indicates that these databases cannot be fully accurate but SASSA will have to make the best use of the available data.

To collect all the databases, make sure they are accurate and conduct verifications before the monthly payment of all grants, may lead to complete non-payment, because these processes take time.
Similarly, it will also take time to pursue government employees who benefited from SRD grant because they are in different departments and to take them through the court process will take time and cause congestion within the court system.

The key lesson learnt in the administration and payment of the SRD grant is that it is very difficult to build systems and have them running within a short period of time.
If the SRD grant was to be extended again, it will be beneficial for SASSA to be given at least a 6 47 109 48 months’ notice because it involves billions of money and entering into partnerships with stakeholders, such as banks.

• Awareness initiatives around CSG Top Up: The Committee wanted to know what awareness initiatives have been conducted to encourage caregivers to apply for this grant.

SASSA explained that the uptake on this grant is still slow because it is a new grant.
Most regional offices have been conducting campaigns through radio stations and community leaders.

SASSA is also using DSD and Department of Health records of orphaned children.

SASSA is also looking at its own database to identify orphans living with relatives.

It is also looking at working with the Department of Home Affairs.
• Number of migrants and asylum seekers receiving grants: The Committee made reference to recent report that 6 800 SASSA cards were found with foreigner nationals and wanted to know the number migrants and asylum seekers receiving social grants.

SASSA explained that normal social grants are not paid to migrants and asylum seekers but to refugees.

There are 6 500 refugees in receipt of grants.

It is only SRD grant that is available to asylum seeks and there are 15 300 asylum seekers receiving the grant.
Their applications are processed the same way as South African citizens are processed.

SASSA relies on the Department of Home Affairs to determine their legal status.

• Increase in levels of fraud: The Committee also asked some questions in relation to the high levels of fraud in the grants administration and payments.

They related to progress report on the electronic fraud detector system and the number of fraud and corruption cases that were successfully resolved and referred to court for prosecution.
SASSA explained that South Africa has high levels of crime and so fraud will always be a problem for SASSA as it handles large amounts of money.

It is up to it to build strong systems to deter it.

The challenge is that the more security is put in place the more service delivery may be compromised or difficult for people to qualify.

It will not always be feasible to subject people to all the fraud checks.
There is always a need to find a balance Before the fraud detection system could be procured SASSA needed to conduct a fraud pattern review and it found that fraud detection can be done through the in-house business 48 110 49 intelligence system which has been very effective.

For instance, 37 cases of fraud were detected in Eastern Cape.

No external system was then procured.


• Criminal charges against former employees: The Committee wanted to know the reason criminal charges were not laid against former employees.

SASSA reported that criminal charges are instituted when there are criminal elements involved and when SASSA suffered losses.
• Underachievement on lease agreements: The Committee raised a concern regarding this matter and wanted to know why SASSA not transfer all lease agreements to the Department Public Works and Infrastructure.

It also wanted to know what monitoring measures are in place to better managed lease agreements.

SASSA explained that irregular expenditure as a result of expired lease agreements was from leases within its management.
It has prioritized the procurement of leases, improving contract management issues, implementing the Immovable Property Acquisition Strategy and affording the Department of Public Works and Infrastructure time to finalise its procurement processes.

• AGSA recommendations: The Committee wanted to know the number of recommendations made AGSA for 2020/2021 financial year and how many were implemented.

SASSA reported that there were 71 recommendations made and 66 were finalised.
Five (5) were still work in process and one (1) was for a long standing irregular expenditure.

The challenge has been that some of the long standing cases are complex and it has taken time to investigate.

For recommendations related to wasteful expenditure SASSA managed to implement 60% of them.

Some cases are with the courts.

There was also a delay in the getting an external service provider to review the internal audit unit as per the requirement.
Bids for an external service provider were unresponsive and SASSA approached National Treasury to assist in obtaining an external service provider.

• Foster culture of consequence management: The Committee further wanted to know what has SASSA done to foster the culture of consequence management.

49 111 50 SASSA reported to that improve the turnaround time in finalising cases of financial misconduct it has implemented preventative measures.
It has already started reviewing its Supply Chain Management (SCM) policy and procedure.

It conducts pre-audit of tender awards and conducts training of employees on policies and procedures.

Also related to consequence management, the Committee wanted to know in relation to the long standing cases of irregular expenditure, the reason implicated employees were not suspended while investigations are ongoing.
SASSA reported that forensic investigation on the two long standing cases of irregular, cases involving R316 million and R74 million Material Irregularities (MIs), were at an advanced stage.

The case of R316 million irregular expenditure is subjected to court procedures.

Consequence management instituted will then depend on the outcome of the reports.
9.3 National Development Agency • Consequence management: The Committee wanted to know action taken against implicated employees; AGSA finding that the NDA leadership did not sufficiently monitor the implementation of action plans to prevent the recurring non-compliance with SCM prescripts when procuring and what the NDA is doing to foster the culture of consequence management.

It also raised a concern on the suspended employee who was reinstated without following proper procedures.
It requested the NDA to provide with a detailed report on this matter.

• Financial performance: The Committee wanted to know the reasons the Gauteng DSD fund of R3.8 million was returned.

The NDA explained that the funds were made available by the Gauteng DSD for it to implement a farming programme.

After the Service Level Agreement was signed there were challenges identified on the conditions attached to it and the province could not resolve some of the issues raised by the NDA.
Some of the conditions would have made NDA found wanting in terms of adhering to its grand funding guidelines.

An amicable agreement was then reached that the funds should be returned to the provincial department.

50 112 51 • Labour relations matters: The Committee sought clarity on the reported R5.9 million set aside for salary increases and bonuses.

The Agency explained that it budgets for salary increases and bonuses in accordance to National Treasury guidelines and negotiations with organised labour.
Increase in staff costs was due to salary adjustments and filling of some vacancies.

The R5.9 million was a provision for the payment of bonuses.

However, because of the absence of the Board, staff performance assessments have not been finalised.

Thus the amount is a provision should the Board approve the payment of bonuses.

• List of CSOs that secured grant funding: The Committee wanted to know the number of CSOs that received grant funding.
The Agency reported that it funded 88 CSOs in 2021/2022 – 25 in KwaZulu-Natal, 12 in Eastern Cape, 11 in Free State, 10 in Limpopo, 8 in North West, 6 in Mpumalanga, 5 in Western Cape 5 and also 5 Gauteng.

• Number of community members that received skills development: The Committee also wanted to know the number of community members that received skills development.

The Agency reported that 558 community members were capacitated throughout the country.
Training focused on project management, compliance to legislation, financial management.

• Track of targets in provinces: The Committee wanted to know how the NDA tracks implementation of targets in the provinces.

The NDA explained that provincial offices submit quarterly and annual reports.

Officials from the national office also conduct site visits as well as quarterly review sessions.
• Turnaround strategy: The Committee wanted to know the latest progress in the implementation of the turnaround strategy.
The Agency reported that it had already started implementing it and its Annual Performance Plan (APP) included four (4) deliverables – reconfiguration of the NDA 51 113 52 in line with business model and service delivery model, digital strategy of the NDA, pilot implementation of the turnaround strategy in 9 districts and a partnership strategy to seek common development programmes with stakeholders.
• Implementation of AGSA recommendations: The Committee wanted to know the number of recommendations made by AGSA and how many were implemented.

The Agency reported that it had received 38 recommendations in 2020/2021 financial year and management monitored their implementation.

All the recommendations were implemented.

For 2022/2023 financial year, the NDA had received 12 recommendations and they already had been implemented.
• Investigations on financial mismanagement: The Committee requested for a feedback on the status of investigations on financial misconduct cases.

The Agency reported that investigation related to financial misconduct on Unemployment Insurance Fund (UIF) case was completed and report was submitted.

The investigation on financial misconduct on the Volunteer Programme was about to be concluded.
If the investigations find any elements of criminalities, the cases will be referred to the law enforcement agencies.

Non-criminal matters will be considered through internal policies such as recovery of financial losses, or through a disciplinary process.

• Board appointment: The Committee wanted to know how far the processes of appointing Chief Executive Officer and a board were.

This issue is long outstanding and needs to be urgently finalized.
The Agency reported that the appointment of the board was almost at the concluding stage.

Once the board is in place, recruitment for CEO will commence.

52 114 53 10.

RECOMMENDATIONS 10.1 Department of Social Development • The Minister should ensure that the Department during the 2022/2023 financial year strengths its impact analysis of its policies, programmes and targets and reports on it on its quarterly and annual reports to Parliament.
The reports should also outline a direct link on the impact of non-achievement of targets on service delivery (people on the ground).

• The Minister should also ensure that the Department during the 2022/2023 financial year strengthens its performance reporting controls across all five programmes, to ensure that all reported targets are verifiable.
• The Minister should also ensure that the Department from the 2022/2023 financial year going forward, incorporates its responses and/or implementation of the AGSA’s findings and recommendations in its quarterly and annual performance reports.

• The Minister should also ensure that the Department during the 2022/2023 financial year addresses the Auditor-General’s repeat findings on non-compliance with legislation on procurement and contract management.
• The Minister should ensure that the Department develops mechanisms to address the challenge of dependencies to other stakeholders that result in it not achieving some of the key targets, particularly those linked to the medium term strategic framework.

These dependencies affect service delivery and compromise ethical governance and accountability.
• The Minister should also ensure that the Department implements the Committee’s recommendation it made in 2019/2020 Budget Review and Recommendations Report (BRRR) that the long standing vacancies, particularly at senior management level are filled during the 2022/2023 financial year.

• The Minister should ensure that the Department trains and clearly communicates to provincial departments the constitutional oversight role of Parliament.
It is important that queries or requests for information by Members of Parliament are responded to.

Failure to do so implies dereliction of duty.

• The Minister should also ensure that the Department during the 2022/2023 financial year tables to Parliament its action plan on the employment of social workers and the Sector Strategy on the employment of social workers.
• The Minister should also ensure that the Department during the 2022/2023 financial year tables a report on financial misconduct cases and consequence management taken across the 53 115 54 social development portfolio.

The report should also include actions taken to recoup SRD grant monies paid to ineligible beneficiaries and any other consequence management taken.

The report should further report on actions taken against all implicated officials who are still in the employment of the sector.
10.2 South African Social Security Agency (NDA) • The Minister should ensure that SASSA during the 2022/2023 financial year explores the Committee’s recommendation of engaging with the Department of Health to implement a registration system for children’s grants at health care facilities as a possible solution to reaching all eligible children below the age of 1.
• The Minister should also ensure that the Department as part of its oversight role works with SASSA and engage with organs of state supplying SASSA with databases with the aim of ensuring that SASSA receives databases on time.

This is to ensure that delays in the payment of the SRD grant are eliminated.

This is particularly important as the Department is currently working on reforms towards development of a comprehensive social security, which includes introduction of the Basic Income Grant.
• Similarly, the Minister at an inter-ministerial level and the Department at an inter- departmental level should accelerate discussions on the development of an integrated database system to enable SASSA to obtain real time data needed for the processing and payment of social grants.
• The Minister should also ensure that at an inter-ministerial level discussions and decisions are prioritised on the recovery of monies paid through the SRD grant to ineligible state officials as well as consequence management to be taken.

• The Minister should also ensure that SASSA from the 2022/2023 financial year incorporates its responses and/or implementation of the AGSA’s findings and recommendations in its quarterly and annual performance reports.
• The Minister should ensure that SASSA during the 2022/2023 financial year addresses the Auditor-General’s repeat findings on non-compliance with legislation on procurement and contract management.

• The Minister should also ensure that SASSA during the 2022/2023 financial year tables in Parliament a detailed action plan to address fraud and corruption in the administration and payment of social grants.
54 116 55 10.3 National Development Agency (NDA) • The Minister should ensure that the NDA from the 2022/2023 financial year incorporates its responses and/or implementation of the AGSA’s findings and recommendations in its quarterly and annual performance reports.

• The Minister should also ensure that the NDA during the 2022/2023 financial year addresses the Auditor-General’s repeat findings on non-compliance with legislation on procurement and contract management.
• The Minister should also ensure that during the 2022/2023 the long standing appointments of the NDA board and the Chief Executive Office are finalized.

• The Minister should also ensure that the NDA during the 2022/2023 financial year submits a report to Parliament on the reinstatement of a suspended official without following proper procedures.

Report to be considered 55 117 5.


Portfolio Committee on International Relations and Cooperation Budgetary Review and Recommendation Report 2021/2022 Chairperson: Hon SOR Mahumapelo MP 118 Table of Contents 1.

Introduction 1.1 The scope of the report 1.2 The Committee mandate 1.3 The purpose of the BBR report 1.4 The Department mandate 1.5 Measurable Objectives of the Department 2.

Focus on compelling mandates 3.

Presentation of the Annual Report 4.


Analysis of the Annual Report and Financial Statements of the Department 5.

Analysis of the Annual Report and financial statements of the ARF 6.

Consideration of the Report of the Auditor-General on the Department and its entity 2021/22 7.

Findings of the Committee 8.

Responses by the Department 9.

Conclusions 10.
Recommendations 2 119 The Budgetary Review and Recommendation Report of the Portfolio Committee on International Relations and Cooperation, dated 19 October 2022 The Portfolio Committee on International Relations and Cooperation (the Committee), having considered the performance and submission to National Treasury for the medium term period of the Department of International Relations and Cooperation (the Department), and its entity, the African Renaissance and International Cooperation Fund (the ARF), reports as follows: 1.
Introduction The Portfolio Committee received the presentations on the Annual Reports 2021/22 of the Department and that of the African Renaissance Fund, on 12 October 2022.

In its consideration of the reports, the Committee also enlisted input from the Office of the Auditor-General and the Audit committee on the annual performance of the Department and the entity on 11 October 2022.
1.1 The scope of the report The focus of the assessment was on the performance of the five (5) key programmes of the Department namely; Administration, International Relations, International Cooperation, Public Diplomacy and Protocol Services as well as International Transfers.

The Department’s performance and that of the entity was measured against their set targets as identified in the respective Annual Performance Plans 2021/22, based on the Strategic Plans of 2020-2025.
Annual performance was also measured against Government’s key priorities identified in the President’s State-of-the-Nation Address (SoNA) of February 2021, the Government’s Medium Term Strategic Framework 2019-2024 and in accordance with information contained in the National Treasury 2021 Estimates of National Expenditure.

Other key measures comprise of the moral values and principles that underpin the country’s foreign policy.
The report also covers the views and findings of the Committee, and the resultant recommendations borne out of the Members’ 3 120 scrutiny and analysis of the performance of the Department and its entity for the reporting period.
1.2 Mandate of the Committee The Portfolio Committee on International Relations and Cooperation, is a committee of Parliament mandated by the sections 55 and 92 of the Constitution of South Africa,1 to oversee and ensure accountability in the formulation and conduct of South African foreign policy.
Consequently, the Committee conducts oversight on activities of the Department of International Relations and Cooperation and its Missions abroad, on its policies, legislation, financial spending patterns, administrative issues, and it holds the Department accountable for its operations and functions.

The Committee is thus mandated by the Constitution to legislate, conduct oversight over the Department and also facilitate public participation.
The Committee may also investigate any matter of public interest that falls within the foreign policy area of responsibility.

The Committee is thus an important mechanism for ensuring oversight over the conduct of South Africa’s international relations and cooperation policy.

1.3 Purpose of the Budgetary Review and Recommendation Report In accordance with section 5 of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No.
9 of 2009), the National Assembly, through its committees, must assess service delivery performance of each national department and submit Budgetary Review and Recommendation Report (BRRR) for each department, for tabling in the National Assembly.

The process allows the National Assembly to evaluate the effective and efficient use of allocation of resources; and may make recommendations on forward use of resources.
These reports will be considered by the Standing/Select Committees on Appropriations and Finance, respectively, when they make recommendations to the Houses of Parliament on the Medium Term Budget Policy Statement (MTBPS).

1 Constitution of the Republic of South Africa 1996 4 121 The Committee examined the expenditure report as published by the National Treasury, commonly known as section 32 Reports of the Public Finance Management Act (PFMA) 1999 (Act 1 of 1999).
Reference was also made to the Auditor General’s report on the 2021/22, Budget Vote 6 and the Department’s Annual Report 2021/22.

1.4 The core function and mandate of the Department The overall mandate of the Department is to work for the realisation of South Africa’s international relations policy objectives.

In terms of the provisions of the Constitution, the President of the Republic of South Africa bears the overall responsibility for the country’s foreign policy and international relations.
However, the Department is entrusted with the formulation, application and implementation of South Africa’s foreign policy which is derived from South Africa’s domestic priorities2.

The Minister of International Relations and Cooperation (the Minister) assumes overall responsibility for all aspects of South Africa’s international relations, albeit in consultation with the President.
The Minister also liaises and consults with members of the Cabinet on overlapping issues and on the priorities and programmes of other departments that bear an international relations element3.

In the same breath, other Cabinet ministers are required to consult the Minister on their international role.

1.5 Measurable Objectives of the Department The Department’s overall mandate is to work for the realisation of South Africa’s foreign policy objectives.
It achieves this through implementing identified strategic objectives aimed at responding to the domestic priorities as announced by government for the reporting year.
This is done by: Coordinating and aligning South Africa’s international relations abroad; Monitoring developments in the international environment; Communicating government’s policy positions; 2 Department of International Relations and Cooperation Annual Report 2021-2022 3 Ibid 5 122 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 business; Sourcing developmental assistance; and Assisting South African citizens abroad4.
During the reporting period, the thrust of the work of the Department remained anchored on these overarching priorities as confirmed by the January 2021 Cabinet Lekgotla and the 2021 State of the Nation Address (SoNA).

In its work on these priorities, the Department is supported by the following activities: • Organisational support; • Rendering of professional services and • Organisational strengthening.

2.
2.

Focus on compelling mandates 2.1 Analysis of the Department’s prevailing strategic and operational plans The Annual Report reflects the highlights of a number of diplomatic activities carried out by the Department including its Missions abroad.

At the time of reporting, South Africa’s representative footprint has grown from 34 in 1994 to 116 diplomatic missions in 2021/22 in 106 countries abroad, and through the accreditation of more than 160 countries and organisations resident in South Africa.
The extended footprint also put the resources of the Department under pressure, especially within the current constrained fiscal environment in South Africa.

The Department has a dynamic role to play in the improvement of the lives of South Africans.
This is achieved through identifying strategic opportunities for skills and knowledge development, targeted investments, and growing markets for South 4 Department of International Relations and Cooperation Annual Report 2021-2022 6 123 Africa’s products and services abroad.

This way, the Department ensures that international relations work is linked and responds to domestic imperatives.
During the reporting period, the Department remained focused towards implementing strategies and mechanisms to bolster regional and continental political and economic integration.

These are the apex priorities of South Africa’s foreign policy5.

The inherent foreign policy outlook guided the Department’s engagements in Africa, and with partners in the global South, developed nations of the North as well as in multilateral relations.
2.2 2021 State-of-the-Nation Address In his February 2021 State-of-the-Nation Address6, President Cyril Ramaphosa provided guidelines to the priorities to be pursued in support of the key national goals of foreign direct investment, job creation, as well as advancing the notion of global response to the challenge of COVID-19.

It was said that the Coronavirus response requires ensuring equal access to vaccines for South Africa and the African continent7.
SONA has clearly highlighted the adversarial effects that the outbreak of this pandemic has had on the country’s national priorities as articulated at the beginning of the year 2021.

It was mentioned that part of the Department’s principal responsibility it to help rebuild national economy.
2.3 Alignment to National Development Plan (NDP) and the 2021 MTBP Statement and the 2019-2024 Medium Term Strategic Framework (MTSF) In Chapter 7 of the NDP entitled “Positioning South Africa in the world”, the National Planning Commission argued that government’s global and regional policy- making stance should be South Africa-centric.
It should also improve South Africa’s integration in the region, on the continent, among developing countries, and in the 5 Annual Report of the Department of International Relations and Cooperation 2021/22 6 Ramaphosa C, State of the Nation Address 2021 7 Presidency, 2021 7 124 world with measurable outcomes.
The National Planning Commission also argues that policy-making should be guided by the following principles and objectives8: • Focus on what is achievable without over-committing to possibilities of regional and continental integration.

• Foreign Policy should be evaluated on a regular basis to “ensure that national interests are maximised”.
• Remain an influential member of the international community; • Deepen cooperation with Brazil, Russia, India and China as part of the BRICS group while promoting regional and continental integration; • Stabilise the regional political economy through increased integration and cooperation; and • Achieve measurable outcomes related to food, energy, education, health, transport and communication infrastructure, national defence, adjustment to climate change and economic growth to benefit all South Africans9.
2.4 Service delivery environment In its examination of the Annual report of the Department, the Committee observed that the Department had aligned itself with the prescripts of Chapter 7 of the National Development Plan entitled “Positioning South Africa in the world”.

(National Planning Commission (2011): One of the objectives of the national development plan is to enhance South Africa’s position in the region and the world, and to increase trade and investment.
The plan 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 country should position itself as one of Africa’s powerhouses, leading development and growth on the continent.
8 National Planning Commission, 2011 9 The National Development Plan, Chapter 7: Positioning South Africa in the World) 8 125 Integration with the Brazil-Russia-India-China-South Africa group of countries should be deepened10.

In this regard the Department is doing its part in contributing to the realisation of the plan’s development goals.
These are achieved through continuing to support regional and continental processes, responding to and resolving crises, strengthening regional integration, contributing to an enabling trade environment, increasing intra-African trade, and championing sustainable development and opportunities in Africa.

The Department recognises that the NDP proposed expansion of South Africa’s trade and global market share.
To achieve this, a greater productive and export capacity and global competiveness across the region needs to be built.

The Department’s strategic focus is thus to advance a developmental integration agenda in Southern Africa.

This would be achieved by combining trade integration, infrastructure development and sector policy coordination.
The Committee, in its analysis of the Annual Report 2021/22, observed that the Department continued with its concerted efforts to execute South Africa’s international relations strategy to address the country’s domestic challenges.

In this regard, the National Development Plan enjoins the Department to contribute towards addressing the identified triple challenges of poverty, inequality and underdevelopment.

The NDP requires the Department to create a better life for all South Africans.
This it should do while meeting the country’s international obligations in a dynamic and complex global terrain.

In this vein, South Africa’s foreign policy objectives remained predicted on the country’s national interest and identity.

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.
10 The National Development Plan, Chapter 7: Positioning South Africa in the World) 9 126 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 poor.

The Department recognises that the national priorities as contained in the NDP are inextricably-linked to the aspirations of the African continent.
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 sector11.

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 area12.

South Africa also contributed towards strengthening bilateral cooperation in various fields.
These include agriculture, health - particularly dealing with the COVID-19 pandemic, science and technology, regional and global politics, peace and security on the Continent, food security and agriculture, tourism, minerals and energy, transport and infrastructure.

South Africa and its partners fought hard for the relaxation of patent requirements to enable the Continent to manufacture the doses of vaccine required.
The global COVID-19 pandemic continued to impact on the work of the Department, however, South Africa continued to strengthen bilateral relations and cooperation with the world through structured bilateral mechanisms and the exchange of high- level visits and engagements.

The areas prioritised were aligned to the imperatives of the NDP and MTSF.
They included economic transformation, job creation, education, 11 National Development Plan 2030, Chapter 7 thereof 12 Annual Performance Plan 2021/22 of the Department of International Relations and Cooperation 10 127 health, co-operation in energy, mining and the oceans economy, as well as skills development.
2.5 Opening remarks by the Chairperson of the Portfolio Committee, Mr SOR Mahumapelo MP In his opening remarks, the Chairperson congratulated the people of the Kingdom of Lesotho, for conducting what has been regarded by SADC, African Union and other international observers, as a free and fair election.

He commended South Africa’s role as a SADC Facilitator to lead the reform process in Lesotho.
He expressed hope that the incoming government would see the need to finalise the chapter of reforms, for stability and peace in Lesotho.

The Chairperson commended the Department for an unqualified audit opinion and the ARF was its successive clean audits, He encouraged both to maintain the current scenarios in the future.

3.
3.

Presentation on the annual service delivery performance of the Department in 2021/22 financial year The Deputy Minister of International Relations and Cooperation, Mrs Candice Mashego-Dlamini, gave an overview, in the form of introductory remarks, on the overall performance as guided by the delivery programmes of the Department and the ARF for 2021/22.

The Department then added details of the annual performance of the Department and the African Renaissance Fund.
In her introductory remarks, the Minister pointed out that during the reporting period, despite the challenges brought about the COVID-19 pandemic, the Department was able to achieve its set target on its core mandate.

11 128 3.1 Analysis of performance According to the 2021/22 Annual Expenditure Report, the Department of International Relations and Cooperation spent R6 037 010 billion of its 2021/22 available budget (of R6.518 billion) as at the end of March 2022.
The R6 037 010 billion in actual spending is R480.9 million lower than the projected expenditure for this period.

The lower than projected expenditure is mainly attributed to the lower than projected spending on goods and services, due to favourable exchange rates at missions for most of the 2021/22 financial year, as well as reduced travel or official trips attending the COVID-19 pandemic management related restrictions.
The lower than projected expenditure was also incurred by the budget for payments for capital assets due to delays in the procurement of the network infrastructure modernisation system and laptops for missions as the service provider for these services has not been identified yet; and delays in the implementation of the property management strategy attributed to the postponement of the required face-to-face bid evaluation committee meetings for services related to the execution of the strategy.

4.
4.

Overview and assessment of the financial performance of the Department for the 2021/22 financial year 4.1 Financial expenditure trends of the Department The Department managed to maintain its spending within the reduced budget allocation in the implementation of the Annual Performance Plan.
This was attained through the implementation of cost saving measures, such as revision of rental norms and standards, reduction on the international travel and doing more with less through the introduction of efficiency in the operation of the missions.

12 129 However, the Department had to navigate the impact of the budget cuts experienced on the compensation of employees, which unfortunately, has resulted in the expenditure exceeding the budget ceiling.
Under this item, the Department reported that the higher expenditure trend on compensation of employees is attributable to COE ceiling implemented by National Treasury, which does not cover the cost for the filled positions, as well as the depreciation of Rand against major currencies which impacted expenditure incurred in foreign currency.

The Department has since embarked on the closure of some missions abroad.
Table 1: Total expenditure for financial year 2021/22 Programme name R'000 Administration International Relations International Cooperation 2021/2022 Final Appropriation Actual Expenditure Variance % of Variance 1 626 687 1 348 528 278 159 3 354 652 3 275 846 78 806 493 594 472 256 21 338 Public Diplomacy and Protocol Services 293 839 262 547 31 292 International Transfers 749 100 677 833 71 267 Total 6 517 872 6 037 010 480 862 Source: Annual Report of the Department of International Relations and Cooperation 2021/22 Administration The variance is reported primarily attributable to the delay in the procurement process relating to ICT projects.
It is also attributable to the delay in the implementation of property management strategy, coupled with delays experienced with the bid evaluation committees, as well as reduced travel expenditure due to lockdown restrictions.

13 17% 2% 4% 11% 10% 7% 130 International Relations The variance is primarily attributable to reduced travel expenditure due to lockdown restrictions.

It was also due to favourable exchange rates experienced on missions’ transactions.
International Cooperation The variance was primarily attributable to reduced travel expenditure due to lockdown restrictions.

It was also due to favourable exchange rates experienced on missions’ transactions.

Public Diplomacy and Protocol Services In this programme, the variance was primarily attributable to expenditure relating to repatriation of South African Citizens abroad, which could not be processed before financial year end.
It was also due to reduced travel as a result of COVID-19 lockdown restrictions.

Goods and services: On this line item, the variance was primarily attributable to expenditure relating to repatriation of South African citizens abroad.

It was further reduced due to less travel expenditure due to lockdown restrictions; as well as favourable exchange rates experienced on missions’ transactions.
Transfers and subsidies: The variance was primarily attributable to the transfer payment for South African Development Partnership Agency (SADPA) which was not paid during the year due to the non-operationalization of SADPA.

Further savings arose from other transfer payments due to favourable exchange rates experienced at the time of payment and reduced assessments for United Nations.
Payments for capital assets The variance was primarily attributable to the delay in the procurement process relating to ICT projects.

This was further compounded by the delay in the implementation of property management strategy due to delays experienced with the bid evaluation committees, which remain unavailable to meet.

14 131 Payments for financial assets The variance was primarily attributable to forex loss relating to missions' transactions for operational costs.

5.
5.

Public Entity: Overview of the Annual Report 2021/22 of the African Renaissance and International Cooperation Fund The Department, in consultation with the National Treasury, is responsible for the administration of the African Renaissance and International Fund (ARF), which was established in terms of Act 51 of 2000.

This fund is under the control of the Director- General of the Department who must account for all payments into and out of the fund.
An Advisory Committee was appointed to make recommendations to the Ministers of International Relations and Cooperation and of Finance on the disbursement of funds, as provided for in the African Renaissance and International Cooperation Fund Act, 2000.13 The objectives of the ARF are to promote economic cooperation between the Republic of South Africa and other countries in particular African countries, through: • promotion of democracy and good governance, • prevention and resolution of conflict, • socio-economic development and integration, • humanitarian assistance, • human resource development, and • cooperation between South Africa and other countries14 The Fund is managed by the Department and payments are made on behalf of the Fund by the Department, once concurrence is received from the Minister of Finance.
This has resulted in the opening of control accounts (Payables and Receivables) in the accounting records of the Department and these accounts are reconciled to the records 13 Annual Report 2021/22 of the African Renaissance and International Cooperation Fund 14 Annual Report 2021/22 of the African Renaissance and International Cooperation Fund 15 132 of the Fund.
The financial statements of the Fund are prepared separately from the Department as the Fund is registered as a Schedule 3A Public Entity in terms of the Public Finance Management Act (PFMA), 1999 (Act 1 of 1999).

All transactions and information arising from the work of the Fund are audited by the Auditor-General South Africa on an annual basis.15 The ARF is set up as a public entity.
However, it does not yet have all the features necessary, like other public entities, due to its placement within the Department’s structures.

The ARF is still faced with challenges of a governance nature, due to it being located within the Department and utilising the Department’s procurement processes.

The entity does not have its own systems of financial and project management, and all its processes are manual.

The ARF secretariat comprise of employees of the Department.
The ARF has remained an important tool for the enhancement of South Africa’s development cooperation on the continent and with other identified partners.

The ARF has achieved a consecutive unqualified audit opinion without findings in 2021/22.

5.1.1 Service-delivery environment The report highlighted that the ARF plays a critical role in pursuing South African foreign policy in the Department.
South Africa’s foreign policy promotes the need to cooperate with all peace-loving people across the globe in pursuit of shared prosperity and a just, equitable and rules-based international order.
These were said to resonate with the objectives of the ARF are to enhance cooperation between the Republic and other countries, in particular African countries, through the promotion of democracy, good governance, the prevention and resolution of conflict, socioeconomic development and integration, humanitarian assistance and human resource development.
15 Ibid 16 133 The ARF Advisory Committee is said to convene once a quarter to, among others things, assess and recommend requests for funding for approval by the Ministers of International Relations and Cooperation and of National Treasury.

6.
6.

Report of the Auditor-General of South Africa 2021/22 on the Department of International Relations and Cooperation and its entity The findings of the Auditor-General indicated that the financial statements presented fairly, in all material respects, the financial position of the Department as at 31 March 2022.
The entity’s financial performance and cash flows for the year, then ended in accordance with Modified Cash Standards (MCS) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.

1 of 1999) (PFMA).

The Department has received an unqualified audit opinion with material findings for 2021/22.
6.1.1 The Department There During the financial year under review, the Department has received an unqualified audit opinion with material findings from the Auditor General for the financial year 2021/22, after four years of successive qualifications.

However, there is a concern that although the Audit Action Plan was developed, but its implementation was not adequate, resulting in some of the root causes contributing to repeat findings.
Some of the areas which were not adequately addressed are reported as follows: Most of the ICT related findings/recommendations were either not implemented or in progress due to various reasons.

The quality of the Financial Statements for 2021/22 that were submitted for audit still contained material misstatements and errors, though subsequently corrected.
According to the Audit committee report, most of the material misstatements and errors identified by the audit, show that there may be gaps in terms of skills and capacity in the Finance Function.

This strengthens the need for a fully qualified CFO 17 134 in the Department.

Fixed assets management is also reported to remain a significant area of concern.

The Auditor General’s report depicts that the Department has received unqualified audit with material findings.
These material findings relate to mostly repeat findings, and these are as follows: The overall audit outcomes in the portfolio has improved when compared to the prior year.

Dirco moved from financially qualified with findings to financially unqualified with material findings and ARF sustained the clean audit outcome.
This was mainly due to maintaining basic financial discipline of preparing credible financial reports supported by reliable information, review and monitoring of compliance with applicable laws and regulations.

The AG commended management for addressing Dirco’s prior year qualification on the current receivables: disallowance and damages account by ensuring corrective action was timeously implemented.
Management is encouraged to maintain the controls that were implemented in clearing the disallowance account to avoid regression in this area.

Compliance with legislation remains a challenge for the Department, especially in the following focus areas: annual financial statements, supply chain management (SCM), expenditure management and consequence management.
This is mainly due to consequence management not being implemented in a timely manner to address previously reported deficiencies and lack of adequate reviews at various levels supporting the preparation of annual financial statements.

An additional non- compliance in revenue management was identified and reported in the current year.

There must be focused interventions to address these matters.
6.1.2 Performance information According to the Auditor-General, as of 31 March 2022, the Department has continued to produce a credible annual performance report that is useful and reliable.

The department has managed to achieve 97% (33 of 34) of the planned targets on its 18 135 key programmes namely: international relations; international cooperation; public diplomacy and protocol services and international transfers.
In the current year, the AG scoped in for audit programme 2: international relations; the Department achieved 100% of its annual planned targets for the current year.

The purpose of this programme is to promote relations with foreign countries through the three (3) branches of the Department, namely Africa; Asia and the Middle East and Americas and Europe.
Despite the challenges of limited air travel and covid-19 related restrictions, here are some of the key achievements we noted that contributed directly to the mandate of the Department: Missions continued to engage in economic diplomacy activities to promote the increase of value-added South African exports and the expansion of the South African investment footprint.
Economic relations were strengthened through activities such as the hosting of business seminars, networking sessions and engagements with potential high-level investors and importers.

South Africa continued to strengthen bilateral relations and cooperation with countries on the continent through Structured Bilateral Mechanisms and High-level Visits and engagements during the period under review.
The department is encouraged to continue in the execution of South Africa’s foreign policy as these efforts will contribute to foreign investment into South Africa, as well as increased trade and growth in the tourism sector.

6.1.3 Governance and stability Although the portfolio is stable; there are vacant positions in the portfolio which cannot be filled due to the compensation of employee ceiling.
The Department reported at least 237 positions at supervisory (196) and senior management level (41), these positions include the position of the DDG: global governance and CFO.

Through discussions with management, currently some of the positions are being filled.

The AG noted the appointment of the DG after year end (01 April 2022); this appointment will ensure the continued stability in the portfolio.
The vacancy of the 19 136 CFO is in the process of being filled with shortlisting planned for October 2022.

Subsequent to year-end, the AG noted that ARF financial manager position became vacant and is in the process of being filled.

• The overall vacancy rate in the Department is 16%, which is above the national average vacancy rate of 10%.

The rate has increased from the prior year (15%).

These vacancies are not budgeted for in the current year.
Due to the high number of vacancies in the supervisory and senior management roles, this has negatively impacted on the quality of information supporting the annual financial statements and adherence to applicable laws and regulations.

Due to the limit imposed by the ceiling, it is critical that the positions be aligned to areas of concern as per internal control weaknesses identified and areas where delivery of the mandate is done at the cost of employees' health.
There should be an assessment of non-critical positions held by employees with the necessary skills to fill critical positions.

This assessment can be used to close non-critical positions by restructuring.

6.1.4 Material irregularities In the current year, Dirco was included for implementation of the material irregularity definition in terms of the PAA.

We have not identified and reported any material irregularity in the current year.
The department received a condonation approval from National Treasury on the payments made for the procurement of the property in New York.

The Department is also pursuing the matter through the courts in an effort to try and recover the monies paid.

The audit team is currently assessing whether all non-compliances reported in the current and prior years resulted or is likely to result in material financial losses.
Should it be concluded that there is any material financial loss, a notification will be issued to the accounting officer in due course.

This may occur even after the audit report is issued.

6.1.5 Information technology (IT) 20 137 The Department continued to use old IT infrastructure due to ongoing delays in the implementation of the infrastructure modernisation project to replace the old and obsolete infrastructure.
A service provider was appointed; however, they couldn’t access some of the products they needed in the project as it is an international service provider and there were restrictions in countries due to covid-19 restrictions.
Due to the delays and vacancies in key IT positions including the IT Security manager who is responsible for overseeing the overall entity’s information and communication technology (ICT) Security, the IT control enhancements committed to in the previous cycle were not implemented, resulting in repeat IT findings.
Some of the key IT findings due to old infrastructure and some of which are due to lack of oversight included: Patches were deployed manually into the production environment without being tested• Numerous backup failures were experienced due to obsolete backup solution and infrastructure.

Program changes were not tested prior migration to the production environment.

Employees no longer in the employ of the department not terminated in the systems.
Some systems have a limitation as they did not have the functionality to log changes made on these applications.

As per discussions with management, this is due to high cost involved in redesigning the systems.

The above IT findings might also lead the department to being vulnerable to the risks of cyber-attacks and business continuity risk.
6.1.6 Financial assistance to Cuba (ARF) In terms of the ARF act, the fund was established to enhance co-operation between the Republic and other countries, in particular African countries.

Currently, Cuba is the only non- African country that is receiving funding from the ARF and the reasons for the funding of Cuba is based on the long-standing respectable, cordial and political relationship the two countries share.
In a contract, dated 03 February 2012 signed between the government of Republic of South Africa (SA) and the government of the Republic of Cuba on economic assistance, a funding package of R350 million was agreed on.

Per the entity’s reconciliations, the total assistance already dispersed to Cuba is R210 million.

There 21 138 is R50 million that was earmarked to be provided to Cuba and it has not yet been provided as it is now a subject of a court interdict.
AfriForum was granted an interdict to stop Dirco from dispersing the R50 million aid assistance to Cuba.

Dirco subsequently applied to have direct access to the constitutional court to have the matter heard, however the application was dismissed without hearing the merits of the matter.

The Department is currently awaiting a high court date to have the merits of the case to be heard.
During the audit process, the AG inspected approval documents for the amount and noted that it has followed the processes as per ARF Act; and was also cordially approved by both the Minister of International Relations and the Minister of Finance.
The AG further made findings of noncompliance with legislation on the following matters: 6.1.7 Unauthorised expenditure It has been noted a reduction in unauthorised expenditure over the past two years, RNil in the current year compared to prior year (R150 million).

This can be attributable to closure of some missions and non-filling of vacant positions in an effort to maintain the CoE within budget.
Although the CoE celling implemented by National Treasury was exceeded, it did not result in unauthorised expenditure but irregular expenditure as the overall budget for main division was not exceeded.

6.1.8 Irregular expenditure As disclosed in the reporting year, the Department has incurred a total of R110 million in irregular expenditure.
This is attributable to twenty-nine (29) awards to the value of R1 366 579 were procured without inviting at least the minimum prescribed number of written price quotations from prospective suppliers and the deviation was not approved by a properly delegated official.

In the other incident, specifications for one (1) award with a total value of R63 050 did not stipulate the minimum threshold for local production and content.
Furthermore, the Department spent R100 million and exceeded the budget allocation of compensation of employees as per the allocation stated in the Adjusted Appropriation Act 18 of 2021.

22 139 The Department incurred irregular expenditure of R 7.77 million in the current year, mainly emanating from various matters identified by Dirco management including but not limited to expired contracts and SCM processes not followed.

, since 2016, the accumulation of irregular expenditure amounts to R2 billion.
Irregular expenditure not dealt with constitute 70% of R2 billion at Dirco.

Spending condoned for this financial year is Condoned (only in 2021-22) is R139m (7%), not dealt with, is R1,4bn (70%).

Dirco advanced reasons that management indicated capacity issues which led to a backlog in investigations.

Unfortunately, non-compliance as well as consequence management remains a concern.
6.1.9 Fruitless and wasteful expenditure The other matter is with regard to fruitless and wasteful expenditure to the amount of R4 million incurred by the Department in the reporting year.

The major contributor to fruitless and wasteful expenditure in 2021- 22 was found relating to leave, salary allowance and COLA payments while the employee was absent from work without taking leave amounting to R2,9 million.
6.2 Performance information The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for a sample on Programme 2.

The Auditor-General raised concerns with compliance with legislation.
The material findings on compliance with specific matters in key legislation were as follows: 6.3 Compliance with legislation 6.3.1 Annual financial statements and annual report The ARF was commended for submitting annual financial statements (AFS) that are free from material misstatements.
The quality of the Dirco AFS submitted for audit remained a challenge as it contained material misstatements which were subsequently corrected by management, resulting in the Department receiving financially unqualified opinion and material non-compliance with section 40 of the Public Finance Management Act.

23 140 This could be attributable to inadequate reviews at various levels as most material misstatements came from supporting schedules which were not agreeing to the AFS submitted for audit.
There are also capacity issues in the finance department with the critical CFO position being vacant which might have created added pressure on those acting.

Some of the key staff within the finance division were posted to missions abroad, which resulted in an added pressure on the remaining staff.
Revenue management A new non-compliance was identified relating to revenue management of the department where effective and appropriate steps were not taken to collect all money due to the department from rental deposit refunds, as required by section 38(1)(c)(i) of the PFMA.

This was due to inadequate controls including the lack of reconciliations of the rental deposits account and a lack of consequence management on employee- tenants and corporate services managers for deposits not returned.
Due to lack of effective and appropriate steps to collect rentals deposit refunds, the Department wrote off R26.9 million in rental deposits not collected in the current year.

There should be an agreement between the missions and the transferred officials which incorporates acknowledgement of debt at the beginning of the rental period.
The agreement should also incorporate a standard period to return deposits; should the deposit not be returned within a certain time frame, collection should be made through other means, e.g.

deduction from payroll.

Finance division should implement controls to ensure that proper reconciliations are performed on the rental deposit account during the year.

6.3.2 Expenditure Management The ARF was commended for not incurring irregular and fruitless and wasteful expenditure over the past two years.
The AG remained concerned that there has been notable increase in the levels of irregular expenditure in the portfolio at R311 million (2021: R187 million).

24 141 The Department has incurred irregular expenditure relating to the current year amounting to R109.9 million when compared to the prior year amount of R19.3 million.

This represents more than 100% increase in irregular expenditure.
The increase in irregular expenditure in the current year is as a result of non-compliance with the appropriation act, by exceeding the compensation of employee (CoE) budget without obtaining necessary approvals which contributed R100 million to the total Irregular expenditure and non-compliance with SCM legislation that contributed R10 million.
The AG also noted an increase in irregular expenditure arising from old contracts in the current year (R201 million) when compared to the prior year (R167 million).

This was due to the department continuing to use the services from contracts previously declared as irregular, due to the critical nature of the services to the operations of the departments and its missions.
6.3.3 Consequence management The Auditor-General has noted that whilst acknowledging the consequence management actions taken by the Minister in the prior year that resulted in dismissal of the CFO and DG in the current year, there is slow progress in these processes filtering down to the rest of the department which remains a concern.
We noted that only 25% of the prior years’ irregular expenditure has been investigated and all the fruitless and wasteful expenditure arising from 2017-18, 2018-19 and 2019-20 has not been investigated by the Department resulting in poor consequence management.

It needs to be taken into consideration that investigated and un-investigated matters would still be assessed for material irregularities and could still be assessed as MI.
The DG’s plan to address consequence management, included requesting National Treasury to assist with the investigation into irregular and fruitless and wasteful expenditure since the department did not have capacity to conduct the investigations.

The AG also took note that the DG is working on clarifying the reporting lines within the Department to ensure that there is clear understanding as to who is responsible for 25 142 implementing consequence management at different levels.
If the root causes leading to non-compliance with legislation are not addressed, the Department runs a risk of continuing to incur irregular, and fruitless and wasteful expenditure, which could lead to material irregularities in terms of the PAA.

The Department needs to ensure that the current action plan is enhanced to address the repeat findings relating to compliance with legislation.
6.3.4 Procurement and contract management ARF is commended for sustaining its compliance status as the AG did not identify material findings with compliance to legislation.

Compliance with SCM prescripts remains a challenge for the Department.

This is mainly at missions where procurement prescripts were not followed in the procurement of goods and services (similar matters were reported in the prior year) i.e.
minimum quotations required were not obtained resulting in irregular expenditure being incurred.

This was due to the lack of oversight and monitoring by those involved in the compliance processes which must be addressed as part of the audit findings action plan.

6.3.5 Internal control deficiencies The internal audit function must continue monitoring the action plan.

The audit committee should play an oversight role in the implementation and monitoring the effectiveness of the action plan.
6.4 The findings of the Auditor-General on the African Renaissance and International Cooperation Fund 2021/22 In the Auditor-General’s opinion, the financial statements presented fairly, in all material respects, the financial position of the African Renaissance and International Cooperation as at 31 March 2022.
They also presented fairly its financial performance and cash flows for the year then ended, in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.

1 of 1999) (PFMA).

Consequently, the ARF received an unqualified audit opinion without findings in 2021/22 financial year.

26 143 Overall, the performance of the entity has improved significantly since it has a permanent secretariat.
The AG reported satisfied that the internal audit function is operating effectively, and that it has addressed the risks pertinent to the entity in its audits.

The Auditor General’s report has highlighted that the National Treasury is investigating possible irregularities in the African Renaissance and International Cooperation Fund’s state of affairs, at the request of the former minister of the Department of International Relations and Cooperation.
The investigation covers the period from 2012-13 to the 2017-18 financial years.

The investigation had not yet been concluded and was still in progress at the date of this auditor’s report.

Furthermore, the ARF was urged to improve its development of its targets so that they conform to SMART principles.
The AG is also in support of the resolution by the Committee that there is a need to assess and ascertain that the work of the ARF brings about the necessary impact on the ground in the receiving countries, and contribute to improve the lives of people in those countries.

Thus the Committee has asked for an impact assessment on the work of the ARF.

The AG believes this report can be produced without having to await funding from the National Treasury, as suggested by the ARF secretariat.

7.
7.

Findings by the Committee After due deliberations on the contents of the Annual Report of the Department and its entity, the Committee made the following findings: 1.

The audit on performance reporting of the Department was found to have been useful and reliable in accordance with the applicable criteria defined in the reporting frameworks.

The audit outcome on performance information has been positive for the past four years.
The Committee commended the Department for the consistent and positive outcome on performance reporting.

27 144 2.

The Department has received an unqualified audit opinion with material findings.

The ARF has received a clean audit.

3.

The Committee commended the Department for achieving the unqualified audit opinion with material findings.

However, the members raised a concern that in the past, the Committee struggled to get an audit action plan from the Department.
A request was made that this time, this process be managed properly.

From the onset, when the Department starts working on the audit action plan, the Committee should be appraised particularly on progress, and whether internal control measures enable the Department to address issues raised by the Auditor- General.

4.

The Committee sought clarity on the extent to which the DG is involved in the implementation of the Audit Action Plan, particularly regarding consequence management.

5.
5.

On ICT, the Department was asked to explain why targets were not met.

With respect to financial statements, a concern was also raised that they continue to be submitted with material mistakes, which means they must then be brought back for correction.

6.

A concern was further raised that, previously the Department indicated that it was addressing the issue of capacity in the finance branch.
However, the report indicates otherwise that, in fact a number of people in that division have been deployed to missions that's leading to a skills gap or a capacity gap.

The Committee felt that the branches of the Department are working as ‘holding rooms’ for people whose only focus is for their turn to be posted to missions abroad.

7.

On procurement, a concern was raised, regarding why the Department did not seriously address this area as the Committee began raising it in the past.
From the side of the Department there was a commitment to say that this matter will be addressed, but results prove otherwise.

28 145 8.

The AG reported that effective and appropriate steps were not taken to collect all money due to the Department from rental deposit refunds, as required by section 38(1)(c)(i) of the PFMA.
This was due to inadequate controls including the lack of reconciliations of the rental deposits account, and a lack of consequence management on employee-tenants and corporate services managers for deposits not returned.

Due to lack of effective and appropriate steps to collect rentals deposit refunds, the Department wrote off R26.9 million in rental deposits not collected in the current year.
The Committee sought clarity on the actions that the DDGs are taking at mission level to ensure that the Department does not forfeit rental deposits, as it has about a 1000 rented properties abroad.

The Department ought to be having an early warning system that gives an alert at least six months before somebody vacates, for the Department to have an indication of whether the houses are in good order.
The Committee sought a detailed report on all those properties that the Department owns and leases, and how much is being spent on them.

The Committee felt that a lot of resources are channelled to the rentals as opposed to acquiring properties, and maintaining those that are left vacant and vandalised in missions abroad.

The need for a development of a property management strategy, aligned to the Foreign Service Act was advocated.
A further question was asked as to how much the Department is actually paying for office accommodation in the British Consulate offices in New York.

A figure of $259 849 per month was mentioned.

A written report was to be submitted within seven days.

9.

The Committee noted that the AG found out that one of the biggest problems in missions abroad, is the fact that the Corporate Services Managers are not trained in financial and supply chain management when they get posted.
The Committee sought clarity on the steps taken by the Department to address this issue in line with the Foreign Service Act 2019.

10.

The Committee has since been waiting for the impact assessment from the ARF, the Department was asked to report on that and expedite the compilation of the report.

29 146 11.

The Department reported it had developed a property management, and have a director qualified in built environment, and are partnering with G-Tech in National Treasury in this regard.
An assessment of all 118 properties has been done, and 18 are earmarked for disposal.

The Committee asked for a full report of the assessment, and that it be submitted within 14 days.

12.

A need was identified for the Department to conduct a root cause analysis in order to deal with repeat challenges of supply chain management, green contracts, ICT, skills in finance branch and corporate services managers in missions.

13.
13.

The overall vacancy rate in the Department is 16%, which is above the national average vacancy rate of 10%.

The critical one is that of the CFO.

The rate has increased from the prior year (15%).

These vacancies are not budgeted for in the current year.

Due to the high number of vacancies in the supervisory and senior management roles, this has negatively impacted on the quality of information supporting the annual financial statements and adherence to applicable laws and regulations.

14.
14.

Due to weaknesses in daily and monitoring of controls, more time is taken in reconciling information that could have been reconciled accurately from the source.

The above creates a ripple effect and leads to inaccurate financial information being submitted for audit and thereby increasing the risk of a poor quality submission.

15.
15.

Compliance with SCM prescripts remains a challenge for the Department, mainly at missions where procurement prescripts were not followed in the procurement of goods and services (similar matters were reported in the prior year) i.e.

minimum quotations required were not obtained or resulting in irregular expenditure incurred on expired contracts.

16.

The ARF received an unqualified opinion with no findings.
It maintained clean audit outcomes because it has consistently demonstrated the basic 30 147 financial discipline, consistent reviews and monitoring of compliance with applicable laws and regulations.

17.

In 2020/21, the Committee commended the Minister for implementing consequence management at the highest level within the Department.
It further noted that the Minister’s efforts on consequence management have not yet filtered down to the rest of the Department, to promote a culture of consequent management.

18.

The irregular expenditure arising from 2017-18, 2018-19 and 2019-20 has not been investigated by the Department.

19.

On her own volition, the AG examined the processes around the planned donation of R50 million to Cuba.
During the audit process, the AG inspected approval documents for the amount and noted that it has followed the processes as per the ARF Act; and was also cordially approved by both the Minister of International Relations and the Minister of Finance.

The Department is currently awaiting a high court date to have the merits of the case to be heard on the matter.
The Committee appreciated this initiative, and it was confirmed that in accordance with the ARF Act 2000, the aim of the African Renaissance and International Cooperation Fund is to ‘enhance cooperation between the Republic and other countries, in particular African countries…while adhering to the country’s values’.

The Committee would closely monitor the court case brought by the Afriforum and follow up with the Department.
The Committee further noted that its oversight remit extents to ensuring the implementation of bilateral agreements South Africa has with other countries.

20.

The Department received a condonation approval from the National Treasury on the payments made for the procurement of the property in New York.

The Department is also pursuing the matter through the courts in an effort to try and recover the monies paid.
The implications on the other officials involved in the procurement for the pilot project were not clear.

The Committee would 31 148 monitor the outcome of the court processes and follow up with the Department.

21.

It was noted that transactions of this nature require a Finance Team that is adequately qualified to deal with complex accounting standards within diverse multi-currency environment.
Foreign exchange gains or losses require high level skills and frequent reconciliation exercises performed on time.

22.

The Department continued with contracts which were irregularly awarded.

One such contract is the bandwidth contract provided by the BT Communications for which the CFO was charged but not found guilty.

The Department incurred irregular expenditure of R110 million in the current year.
The majority of irregular expenditure was caused by the exceeding of the compensation of employees ceiling and the continuation with contracts that were extended/varied without approval from National Treasury.

23.

The Department was reported to have unfavourable overall financial viability indicators.
The AG reported that the Department has an overdraft amounting to R163 million on PMG account, and the Department’s spending on compensation of employees exceeded the budget by R100 million, due to COE ceiling implemented by the National Treasury which does not cover the cost of filled positions.

The Department’s effort of reducing the shortfall on CoE such as revising the organisational structure and closing of missions are noted and the Department is encouraged to continue with these efforts.

24.
24.

In its Annual Performance Plan 2020/21, the Department had undertaken to review its organisational structure, to align it with its expanding mandate.

During its orientation visit to the Department in August 2019, the Committee also found that there was a concerning misalignment in the organisational structure.
The Committee further established that the Property Management unit was located within the Finance branch, creating a conducive environment where there was a conflict of interest between the work of the CFO and that required for property management.

The Auditor General has 32 149 again made a finding relating to lack of capacity in the Finance Branch.

The Committee expressed frustration with lack of progress in ensuring relevant skills in finance, CSMs, built environment and supply chain management.

25.
25.

The audit team is currently assessing whether all non-compliances reported in the current and prior years resulted or is likely to result in material financial losses.

Should it be concluded that there is any material financial loss, a notification will be issued to the accounting officer in due course.

26.

The Committee applauded the achievements in the implementation of South Africa’s Foreign Policy.
Through the work of the Department and Missions abroad, South Africa has gained recognition in its promotion of multilateralism in global governance and is a respected global player, who champions the aspirations of developing countries, including those of Africa and the Global South.

27.

The Committee further commended the Missions for having pursued their mandate even during the pandemic, especially those resident in Africa.
The Committee wanted to see more activity including increased intra Africa trade from these efforts.

Missions continued to engage in economic diplomacy activities to promote the increase of value-added South African exports and the expansion of the South African investment footprint.

Economic relations were strengthened through activities such as the hosting of business seminars, networking sessions and engagements with potential high-level investors and importers.

28.
28.

South Africa continued to strengthen bilateral relations and cooperation with countries on the continent through Structured Bilateral Mechanisms and High- level Visits and engagements during the period under review.

Dirco, through its missions, collaborates with other government departments, particularly the Department of Trade Industry and state-owned entities (SOEs).
In this regard, the Committee sought to know the extent of coordination between DTI and Dirco, to ensure Economic diplomacy drive is for the benefit of South Africa.

29.

It seemed like the Deputy Directors General (DDGs), under which these defaulting Missions fall, have also neglected their duty to assist the Department, 33 150 by working closely with the Heads of Mission and Corporate Service Managers to deal with some of the root causes for repeat findings coming from their respective missions.
Dedicated oversight meetings with respective DDGs are required.

30.

It was previously reported that the bandwidth procurement process has been under way for some time and that the current service provider has had to be extended over several times, despite the fact that irregular expenditure has been incurred on the tender.
In 2021, the Committee sought assurances that the Department was expediting the procurement process for the new service provider and that the green one (BT Communications) was being terminated.

However, the 2022 AGs report highlighted that the irregular contract would still continue for the next six months through a claimed transitional period for a handing over to a new service provider.

Missions are still without tools of trade and faultless connections, exposing the systems to cyber-attack.
It is noted with concern that former employees are still in the system, showing shortcomings with the ICT infrastructure.

31.

The Committee noted that it has repeatedly commended the Department for clean audit received by the ARF.

However, it expressed a concern that the fund seems not to have impact on this country’s development cooperation agenda.
More information was sought on the plans underway to ensure that the disbursement of the funds from the ARF demonstrates South Africa’s contribution to the objectives set out in the ARF Act.

Also, more information should focus on the turnaround time for the development interventions to be implemented and the extend this has impact on the beneficiary country.

32.
32.

A concern was raised regarding the no spending under programme 5: Transfers, due to the fact that SADPA is not active, as the migration from the ARF arrangement has still not materialised.

The Department was asked to provide timeframes for the implementation of this decision, and the assurance that National Treasury would not end up withdrawing the allocation altogether.

34 151 33.
34 151 33.

The Committee raised a concern that the Department consider procuring ICT machinery in the areas where the missions are, to save money on transportation and ensure proximity in case of malfunctions.

8.

Responses by the Department The Department responded to the Committee’s findings and observations as follows: On the issue of the audit Action plan, the Department noted the comment, and undertook to update the Committee on the progress on its implementation.
On the issue why the Department is not addressing the issues of compliance when it comes to laws and regulations, the Department responded that it was looking into strengthening consequence management.

On the ICT contract, the Department has two service providers concurrently because there has to be a transition period so that the handover of the lines takes place without interrupting the operations of the Department.

On the issue of rentals, indeed the Department has written-off R29 million.
The Department was forced to write-off simply because they were recorded against the officials who have already left the Department and could not be traced back to them.

Going forward, before an official receives a key, they will sign an indemnity for indicating that they will be liable for breakages.

With regard to properties and facilities management units, the section has been established and now has a chief director who is also qualified in the built environment.
Over and above that, the Department is partnering with G-Tech from National Treasury for strengthening the units going forward.

The Department would be able to tap into the professionals including architects, quantity surveyors and civil engineers.

On the issue of a huge property that is occupied only by an ambassador, the Department is looking at changing it into a staff apartment that at least would 35 152 accommodate about three families.
In that regard, it would help the Department to make sure that it is using the space effectively, rather than what is happening right now.

9.

Conclusions Both financial and non-financial performance by the Department in the reporting year has been commendable.

The Committee is encouraged by the efforts undertaken to contribute towards a better life for all in South Africa; striving for a stable and secure continent; and creating a better world for all.
The Committee expressed satisfaction that the Department has utilised its budget in accordance with its plans for 2021/22.

The Department was regarded as having demonstrated accountability to Parliament and the people of South Africa on resources spent, and how it contributed in the achievement of South Africa’s national priorities.
The Department was applauded for continuing to position South Africa as a respected member of the international community, with a dynamic and independent foreign policy that speaks to the country’s domestic priorities.

The Committee noted recurring weaknesses highlighted by the Auditor-General.

It further welcomed the acknowledgement and commitment by the Department, to improve in addressing operational challenges, consequence management and maintaining clean governance approach.
The Accounting Officer and Senior management and in particular the Finance branch, were regarded as critical in addressing the recurring challenges that renders the Department amenable to material findings.

Their attitude to and knowledge of their work, cooperation and attendance of meetings where these issues are addressed, were regarded as important links for enhancing the performance of the Department.
The Committee reiterated the importance of consequence management efforts trickling down to the lower levels in the Department.

The Department also expressed determination and undivided attention to pursue best practices in the areas of consequence management, expenditure management, contract management, financial management, supply chain, and information and 36 153 communications technology, as raised by the office of the Auditor-General.
The Committee noted that there is room for improvement with necessary adjustments in service delivery.

With regard to the ARF, the Committee found that the overall performance of the ARF is good, and cautioned against the slow pace of migrating to an agency, the South African Development Partnership Agency (SADPA) as directed by Cabinet in 2009.

The ARF was noted as working in line with the aspirations of the NDP in pursuing a peaceful and prosperous Africa.
The Committee urged the Department to popularise the good work done through this foreign policy soft power instrument.

10.

Recommendations The Committee is of the opinion that overall the Department has performed according to the goals it had set itself for the 2021/22 reporting period.
The 2021/22 budgetary allocations of the Department were generally aligned to the national strategic priorities outlined in the 2021 State-of-the-Nation Address, as well as its strategic direction in terms of its Medium Term Expenditure Framework 2019-2024.

An undertaking by the Department to improve on weaknesses identified by the Auditor- General, and working towards a clean audit, would demonstrate a positive indication of commitment of purpose by the Department to diligently execute its mandate.
In order to further assist the Department to enhance its performance, the Committee recommends that the Minister ensures that the Department implements the following and report to the Committee within three months of the adoption of this report by the National Assembly: 1.

Maintain unqualified audit opinions for the Department, and aim to achieve a clean audit.

2.
2.

Compile a comprehensive report on all those properties that the custodianship of the Department and leases, and how much is being spent on them.

Furthermore, ensure there is an immediate agreement between the missions and the transferred 37 154 officials which incorporates acknowledgement of debt at the beginning of the rental period.

3.
3.

Operationalise the approved organisational structure to address capacity challenges in the Finance, property management and the Legalisation units to deal with reported backlogs and have relevant skills.

4.

Continue with the investigation of the remaining irregular expenditure cases, extend the investigation to fruitless and wasteful expenditure and action the recommendations of the investigation reports for the investigated cases.

5.
5.

Enhance oversight role on compliance with key legislations applicable to the Department, by taking corrective action for non-compliance especially on repeat matters.

6.

Relook at the policy for posting of officials abroad as some of the Corporate Service Managers (CSMs) do not have formal finance background training and experience.

CSMs are charged with the day to day running of the missions which amongst others include managing finances.

7.
7.

Ensure that DDGs assist the Department by working closely with the heads of mission and the CSMs in order to determine the true root causes for repeat findings coming from their respective missions.

DDGs should also assist the department to pursue consequence management on those responsible for irregular expenditure.

8.

Ensure the action plan is root cause focused and is assessed for effectiveness in addressing the findings.

9.
9.

Develop a report on how the Department would contribute to reducing the rate of youth unemployment in the country, either through internships or learnerships.

10.

Conduct an assessment of non-critical positions held by employees with the necessary skills to fill critical positions; and use the assessment to close non- 38 155 critical positions by restructuring without retrenchments, in order to address the high vacancy rate.

11.
11.

Develop and submit a full report on the implications of the decision to request National Treasury for condonation of the New York pilot project payment within 4 weeks.

12.

Submit the reported assessment of all properties abroad including those 18 earmarked for disposal within 14 days.

13.

Ensure that the Internal Audit Unit together with the Audit Steering Committee review the audit action plan to ensure that root causes are properly identified and that it is adequate to address findings.

14.
14.

Investigate all reported unwanted expenditure (irregular, as well as fruitless and wasteful) for the following financial years: 2017-18, 2018-19 and 2020-21 and report on progress thereof quarterly.

15.

Ensure the development of a property management strategy in line with the Foreign Service Act 2019, with relevant skills and separate from the Finance branch.

16.
16.

Consider approaching the National Treasury, to assist in the conduct of a thorough competency assessment of the financial management function in particular, as well as provide support to the identified skills deficiencies in the Finance Branch in general.

17.

Ensure that suitably qualified accountants, including personnel accredited by the Institute of Chartered Accountants in near future or through other means, are recruited.

18.
18.

Terminate all expired and irregular contracts with service providers and report to the Committee on a quarterly basis of the progress thereof.

39 156 19.

Ensure that a culture of consequence management is cultivated and maintained in the Department.

20.

Fast-track the securing of a service provider for ICT modernisation and syncing with activities of South Africa’s missions abroad.

21.
21.

Prioritise the provision of tools of trade to the Missions abroad to enable remote working and full participation in the demands of digital diplomacy.

22.

Conduct an impact assessment on the work of the African Renaissance Fund, with details of how the disbursement of funds from the ARF contributes to South Africa’s development cooperation agenda.

23.

Prioritise the processing of the Partnership Fund for Development Bill, and stipulate timeframes, to facilitate the migration from the ARF to SADPA.
24.

Ensure that the ARF develops annual targets that are in line with SMART principles.

25.

Develop a report showing how the closing of missions and the implementation of a new organisational structure would assist the Department to remain within the ceiling for the compensation of employees.

26.
26.

Ensure that South Africa continues to implement its international obligations under international agreements it has entered into with different countries, adhering to the constitutional values of patriotism, Ubuntu, friendship and solidarity for needy causes.

27.

Ensure that all the outstanding reports due to the Committee are finalised and presented within 60 days.
To the National Assembly: 40 157 28 The National Assembly should consider the importance and uniqueness of the oversight mandate for the Committee, which warrants that it conducts oversight beyond the borders of South Africa, where South Africa’s Foreign Policy is implemented.

The prevailing Parliamentary Oversight Model, is inward-looking, envisaging oversight by committees only inside the country, thus excluding the requirement for oversight beyond the borders of the country.
The Committee notes that the Office of the Speaker has requested an advisory report from the office of the House Chair-Committees regarding the mandate of the Committee.

The wish of the Committee is for the matter to be attended to with speed.

The oversight mandate of the Committee includes the following areas: - South Africa’s Missions abroad are responsible for the implementation of South Africa’s Foreign Policy in their areas of accreditation.
There is a need for the Committee to conduct oversight, at least twice a year, on these Missions to ensure service delivery.

- The Committee conducts Parliamentary Diplomacy jointly with counterpart committees in other countries, to assess the implementation of structured bilateral mechanisms that South Africa has with strategic partners across the world.

- It also conducts verification oversight visits to project areas of the African Renaissance Fund (ARF) in Africa and elsewhere.
- The Committee should also attend and monitor the participation of South Africa in multilateral forums related to Foreign Policy.

This is to assess the impact of the Department’s participation on the outcomes of those organisations.

29 Facilitate synergies between the PGIR and the Portfolio Committee on International Relations and Cooperation for effective international participation.
30 Consider liaising with the Portfolio Committee when proposing establishment of bilateral and multilateral Friendship Groups agreements.

The friendship groups best illustrate the bilateral exchanges between parliaments, in particular with regard to the development of parliamentary diplomacy.
The activities of these groupings rely on an oversight framework of committees, and should the occasion arise, the opinion of 41 158 the Portfolio Committee on International Relations and Cooperation should be considered.

31 The Committee should be allowed to attend the annual Heads of Missions Conference in order to sharpen oversight on foreign policy trends and priorities discussed during these conferences.
The South African Missions abroad are the implementing mechanisms of the South Africa’s Foreign Policy.

32 The Committee, as a whole, should be allowed to conduct state of readiness oversight visits where the Department is responsible for facilitating the hosting of international conference with a foreign policy undertone.

33 The Committee, as a whole, should be allowed to attend international conferences held in South Africa in pursuance of South Africa’s Foreign Policy.

Report be considered.


42 159 Sources § Annual Report 2021-2022 Department of International Relations and Cooperation.

§ Annual Report 2021/22 African Renaissance Fund § Strategic Plan, 2020- 2025, Department of International Relations and Cooperation.

§ National Treasury, 2021, Vote 6: International Relations and Cooperation, Estimates of National Expenditure 2021.

§ Auditor General Report 2021/22 § Ramaphosa, C. 2021, State of the Nation Address at the Joint Sitting of Parliament.

Cape Town.
Cape Town.

§ The African Renaissance and International Cooperation Fund Act 2000 § Standing Committee on Appropriations: 4th Quarter Expenditure Report 2021/22 financial year.

43 160 6.

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2021/22 ANNUAL REPORT OF THE SOUTH AFRICAN POLICE SERVICE (SAPS), DATED 19 OCTOBER 2022.
The Portfolio Committee on Police, having considered the annual financial and service delivery performance of the South African Police Services (SAPS) for the 2021/22 financial year on 12 October 2022, reports as follows: 1.

INTRODUCTION In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.
9 of 2009, the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations Reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations to the Minister of Finance to amend the budget of a National Department.
The Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendation report as: 1) Assess service delivery performance of departments given available resources; 2) Evaluate the effective and efficient use and forward allocation of resources (value for money in services delivered); and 3) May include recommendations on the forward use of resources.
The BRRR forms a source documents for the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS).

BRRRs must be submitted for tabling in the National Assembly after the adoption of the Appropriation Bill and prior to the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS), which is scheduled for 26 October 2022.
Mandate of the Portfolio Committee on Police • • The Committee is guided by its interest to promote effectiveness, efficiency and professional policing in South Africa.

It has a desire to see a reduction in crime.
The mandate of the Committee therefore is to fulfil its constitutional function to: Process and pass legislation; Scrutinise and oversee executive action and the organs of state including the South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA); Facilitate public participation and involvement in the legislative and other processes; and • • Engage, participate and oversee international treaties and protocols.
The Committee was briefed on the Annual Report for 2021/22 by the Department on 12 October 2022 and also met with the Auditor-General on the audit outcomes on the same date.

Structure of the Report 1 161 • • • • • • • • Section 1: Introduction.

This sections sets out the mandate of the Committee, the purpose of this report (Budgetary Review and Recommendation Report) and the process to develop this report.

Section 2: Overview of key policy focus areas.


This section includes the policy determinations of the National Development Plan (NDP), priorities stated by the President during his State of the Nation Address (SONA), key departmental policy areas and key priorities of the Portfolio Committee on Police for the 2020/21 financial year.

Section 3: Report of the Auditor General of SA (AGSA).

This section provides the key audit findings made by the Office of the AGSA.

Section 4: Financial overview.


This section provides an overview of the Departmental expenditure, including irregular expenditure, fruitless and wasteful expenditure and contingent liabilities.

Section 5: Performance overview.

This section provides an overview of Departmental performance on predetermined key performance indicators and targets.

Section 6: Committee observations.

This section provides a summary of the observations made by the Committee during the 2021/22 Annual Report hearings.
Section 7: Recommendations.

This section contains the recommendations made by the Committee.

Section 8: Conclusion.

This section provides a conclusion to the Report.

2.

OVERVIEW OF THE KEY POLICY FOCUS AREAS 2.1.

National Development Plan (NDP) Chapter 12 titled “Building Safer Communities” is outlines the responsibilities of the policing portfolio in South Africa.
The vision of Chapter 12 is that: "In 2030, people living in South Africa feel safe at home, at school and at work, and they enjoy a community life free of fear.

Women walk freely in the streets and children play safely outside.

The police service is well-resourced and professional, staffed by highly skilled officers who value their work, serve the community, safeguard lives and property without discrimination, protect the peaceful against violence, and respect the rights to equality and justice."
To achieve this vision, the NDP sets out five focus areas, including: • Strengthen the criminal justice system; • Make the police service professional; • Demilitarise the police; • Build safety using an integrated approach; and • Build community participation in safety.

2.2.
2.2.

2019-2024 Medium Term Strategic Framework (MTSF) The MTSF 2019–2024 aims to address challenges of unemployment, inequality and poverty through, 1) driving a strong and inclusive economy, 2) building and strengthening the capabilities of South Africans, and 3) achieving a more capable state.
These underpin the seven priorities of the MTSF – • Priority 1: Building a capable, ethical and developmental state • Priority 2: Economic transformation and job creation 2 162 • Priority 3: Education, skills and health • Priority 4: Consolidating the social wage through reliable and quality basic services • Priority 5: Spatial integration, human settlements and local government • Priority 6: Social cohesion and safe communities • Priority 7: A better Africa and world The 2021/22 SAPS APP and 2020-2025 Strategic Plan are closely aligned to the 2019-2024 MTSF and include various performance indicators required by the MTSF.
In the Minister’s Foreword, he places emphasis on the value of cohesive efforts from a society-wide approach to achieve social cohesion and safe communities and acknowledges that the MTSF is a stepping-stone towards the achievement of the NDP.

To realise increased police visibility, the SAPS launched the Royal Police Reserve in December 2020, and continued the implementation of the Traditional Policing and Community-in-Blue Concepts, together with the Safer Cities Framework.
The SAPS believe that these initiatives will contribute to the reduction of contact crime, particularly crimes against women and children.

2.3.

State of the Nation Address (SONA) President Ramaphosa delivered his fifth State of the Nation Address (SONA) during a hybrid Joint Sitting of the National Assembly (NA) and the National Council of Provinces (NCOP) on 11 February 2021.
Key focus areas of the 2021 SONA were economic development and fighting the COVID-19 pandemic, and the President acknowledged that the key to South Africa’s recovery is tackling crime.

During the 2021 SONA, President Ramaphosa highlighted the following priorities relating to the policing sector: • Resourcing of police stations: As part as the SA Connect project, Government will roll out broadband to police stations.
• Supply Chain Management: The President noted that the COVID-19 pandemic has closed various global value chains.

• Rural Safety: The President committed Government’s support for black small-scale farmers and pursuing programmes to assist smallholder and emerging farmers with market access, to develop skills across the entire agricultural value chain and increase the number of commercial black farmers.
• Ministerial Performance Agreements: In October 2019, the President signed off on Ministerial Performance Agreements with all Ministers to enhance accountability and focused performance by members of the Executive.

The Presidency has published these Ministerial agreements, as well as delegated powers to Deputy Ministers, on-line.

• Corruption: The fight against corruption and strengthening the state was identified by the President as one of the four overriding priorities of 2021.
He further stated that the testimony at the Zondo Commission of Inquiry has shown how corruption has compromised and weakened the criminal justice system.

Over the past three years, efforts have been made to turn around law enforcement bodies including improved cooperation and sharing of resources between respective law enforcement agencies, enabling a more integrated approach to investigations and prosecutions.
• Crime and violence: The President stated, “Crime and violence continues to undermine people’s sense of safety and security” and that tackling crime is central to the success of South Africa’s recovery from the COVID-19 pandemic.

• Economic crimes: The President stated that crimes like cable theft, railway infrastructure vandalism, land invasions, construction site disruptions and attacks on truck drivers hamper economic activity and discourage investment.
The President noted that Government has set up 3 163 task teams in a number of provinces to deal with extortion and violence on sites of economic activity.

• Border Safety: The President indicated that Government is fast-tracking the implementation and capacitation of the Border Management Agency (BMA) to curb illegal immigration and cross-border crime.

• Gender-based Violence: The President repeated his focus on ending gender-based violence as a key priority.
He indicated that he has launched the National Strategic Plan on Gender-Based Violence and Femicide in April last year and that Government has made efforts to strengthen the criminal justice system to prevent women from being traumatised again, and to ensure that perpetrators face justice.

As part of this initiative, Government introduced three key pieces of legislation in Parliament last year to realise effective change in combatting gender-based violence.
The President further stated that Government is making progress in reducing the backlog of gender-based violence cases and that Government continues to provide care and support to survivors of gender-based violence.

To support these initiatives, the President announced that Government has allocated approximately R12 billion to implement the various components of the National Strategic Plan on Gender-Based Violence over the 2021/22 medium-term.

2.4.
2.4.

District Development Model (DDM) In 2019, President Ramaphosa initiated the District Development Model (DDM) to counteract Government’s tendency to operate in silos that leads to a lack of coherence in planning and coordination.

The SAPS acknowledges that the establishing of safe and secure communities, that are conducive to socio-economic stability, thereby supporting a better life for all, is a prerequisite for the successful development and implementation of the DDM.
The DDM requires the SAPS to focus on the establishment of safe and secure communities and to collaborate with all spheres of Government in establishing an integrated planning, budgeting, implementation, reporting and monitoring process.
According to the SAPS, the Department will lead the following initiatives: • The identification of the Top 30 High Contact Crime Weight Stations will ensure a multidisciplinary approach to the significant reduction in the incidence of contact crime at the 30 police stations in the country, at which the majority of the incidents of contact crime are reported annually.
The Top 30 High Contact Crime Weight Stations are identified annually, based on the analysis of reported contact crime during the preceding financial year.

• The initiation of the Safer Cities Framework will ensure a collaborative approach by all relevant stakeholders in the public and privates sectors, using a technologically driven approach to integrating all efforts related to safety and security and service delivery.
• The identified GBVF Hotspot Stations are based on the consideration of a number of variables, including, inter alia: the reported incidence of crimes against women, Domestic Violence and GBV-related calls received via the GBVF National Command Centre, the reported incidence of related cases reported to health facilities, and reported cases received by Kgomotso, Khuseleka and Thuthuzela Care Centres.

• The Districts that will benefit from the establishment of a newly built police station.
• Participate in the establishment of Community Safety Forums (CSFs) in all districts and metropolitan areas.

The SAPS will develop and implement a DDM Implementation Plan, within the context of its Departmental Annual Operational Plan (AOP), to structure the planning and budgeting integration during the 2020 to 2025 strategic period.

4 164 2.5.
Priority areas 2021/22 The Department highlighted the following focus areas for the 2021/22 financial year: 1) Enhancing community safety: The Department “has recognised community safety as integral to creating a safe and secure environment that is conducive to social and economic stability, and supporting a better life for all.” The Department will continue its focus on community participation initiative in crime prevention and focus on the effective functioning of Community Policing Forums (CPFs).
2) Reducing violence against women and children: The Department will target detection rates of 75 per cent and 70 per cent for crimes against women and children, respectively.

According to the Department, it will enhance the detective capacity, improve forensic support and optimise the implementation of the integrated criminal justice strategy.
3) Targeting fraud and corruption: The Department will target fraud and corruption in the public and private sectors through “responsive investigations” that will be facilitated through specialised cybercrime investigative capabilities.

The Departments aims to maintain an annual conviction rate of 70 per cent for cases relating to serious fraud and corruption.
4) Mitigating the impact of baseline reductions: The SAPS indicated that the Department will “explore alternatives to how it renders services in communities” in an effort to mitigate the impact of baseline reductions.

This will include increasing the capacity of police stations; redirecting resources towards increasing police visibility; improving access to policing services; and enhancing frontline service delivery.
This will be realised through the recruitment of entry-level officers and redeploying senior officers to stabilise areas with high levels of crime.

In addition, the Department will continue to conduct virtual meetings that will reduce expenditure on related spending items to ensure that the budget is sufficient.

2.6.
Key priorities of the Portfolio Committee on Police During the 2021/22 financial year, the Committee focused on the following oversight areas: • Appointment of the Critical Infrastructure Council; • Reduction of the backlog in the Forensic Science Laboratory Component; • Reduction in backlog in the Central Firearm Registry (CFR); • Discipline management in the SAPS and implementation of recommendations by the Independent Police Investigative Directorate (IPID); • July 2021 Unrest that affected areas of KwaZulu-Natal and Gauteng; • SAPS Organisational Structure and Stability; • Western Cape Community Policing Forums (CPFs); • Panel of Experts Report on Policing and Crowd Management; • Crime Statistics; • Criminal Law (Forensic Procedures) Amendment Bill; and • Underspending on the SAPS budget.
3.

REPORT OF THE AUDITOR-GENERAL OF SOUTH AFRICA (AGSA) 5 165 The Department received an unqualified audit with four matters of emphasis in 2021/22.

The Department had qualified audits between 2016/17 and 2019/20.

3.1.

Matters of emphasis The matters of emphasis include: 1.

Significant uncertainties: The SAPS is a defendant in a number of lawsuits.

The ultimate outcome of these matters cannot be determined and no provision for any liability that may result was made in the financial statements.
Repeat finding.

2.

Significant subsequent event: A total of 30 police stations/buildings were affected by the floods that took place in KwaZulu-Natal during April 2022 (6 devolved, 2 are leased facilities and 22 non-devolved which have been reported to the Department of Public Works and Infrastructure).

Two police stations were also affected by fire after March 2022.

An estimate of the financial effect is not yet determined.

3.
3.

Restatement of corresponding figure: As disclosed in financial statement notes, corresponding figures for 31 March 2021 were restated as a result of an error in the financial statements of the department at, and for the year ended, 31 March 2022.

4.

Fruitless and wasteful expenditure: Fruitless and wasteful expenditure of R1.8 billion is still under assessment to determine whether it meets the definition.

3.2.
Report on the audit of the Annual Performance Report The AG evaluates the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework for the following selected programme presented in the annual performance report of the SAPS for the year ended 31 March 2022: The material findings in respect of the usefulness and reliability of the Visible Policing Programme are as follows: According to the AG, the achievement in the Annual Report did not agree with the supporting evidence provided for the indicators listed below and showed material differences in the Visible Policing Programme (all repeat findings): 1) Percentage reduction in the number of contact crimes 2) Number of reported contact crimes at the identified 30 high crime weight station 3) Percentage reduction in the number of contact crimes against women (18 years and above) 4) Percentage reduction in the number of contact crimes against children (18 years and below) 5) Number of stolen or lost and illegal firearms recovered 6) Number of identifiable stolen or lost SAPS firearms recovered 7) Percentage of identified illegal liquor outlets closed According to the AG, the achievement in the Annual Report did not agree with the supporting evidence provided for the indicators listed below and showed material differences in the Detective Services Programme: 1) Percentage of outstanding case dockets related to contact crimes older than three years 6 166 2) Percentage of outstanding crime to crime DNA investigative leads finalised 3) Percentage of the outstanding integrated ballistics identification systems investigative leads finalised 4) Percentage of biology DNA intelligence case exhibits (entries) finalised 5) Percentage of results of trial updated in respect of the following: not guilty verdict 6) Percentage of outstanding fingerprint investigative leads finalised During the presentation made by the Office of the AG, the Office stated: “Achievement of targets not aligned to the realities of the country in terms of crimes, due to achievements not supported by accurate records and material limitations experienced.
Higher achievement by Department are reported however this is not translated to actual realities of society.

Low achievement of targets and indicators of the department in the following outputs, reduction of contact crimes, as well the enhanced forensic evidence are two areas that are directly linked to the mandate of the department to prevent, combat and investigate crime.

The above translate to the department not being able to fully execute their mandate as set out in the constitution.” 3.3.
Compliance with legislation The material findings on compliance with specific matters in key legislation are as follows: • Procurement and contract management: Some of the contracts were awarded to bidders based on evaluation/adjudication criteria that differed from those stipulated in the original invitation for bidding as required by Treasury Regulation 16A6.3(a) and (b).
• Expenditure management: Effective and appropriate steps were not taken to prevent irregular expenditure of R152 million disclosed in note 24 to the financial statements, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1.

The majority of the irregular expenditure was caused by non-compliance with the bids requirements.
• Consequence management: The AG was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred and permitted irregular expenditure in prior years, as required by section 38(1)(h)(iii) of the PFMA.

Losses resulting from fruitless and wasteful expenditure were not recovered from the liable persons, as required by treasury regulation 9.1.4.

3.4.
3.4.

Internal control deficiencies The AG highlighted the following: 1) Action plans to address prior year audit findings on performance information were not adequately implemented to ensure that key root causes were addressed.

2) Consequence management was not effected against officials who incurred and permitted irregular expenditure in the previous periods.
3) Management did not always ensure that the department’s state of records was adequate to support all the achievements reported on its performance.

4) Daily and monthly reconciliations were not always performed effectively to ensure that the reported information agrees with the underlying records.

5) The department did not have adequate controls to monitor and identified non-compliance.

7 167 4.
7 167 4.

FINANCIAL OVERVIEW 4.1 Appropriation statement The SAPS received a Final Appropriation of R100.4 billion in 2021/22, of which the Department had spent R99.59 billion or 99.1% thus recording underspending of R878.4 million at year-end.

This is a significant improvement compared to the previous financial year, during which the Department only spent 95.9% of its Final Appropriation budget of R99.5 billion, thus recording underspending of R4.07 billion at year-end.
The Department recorded underspending in all of its five budget Programmes: • Administration: R317.8 million unspent (98.4% expenditure) • Visible Policing: R12.8 million unspent (100% expenditure).

Note: The amount of underspending it too small to affect the percentage expenditure of the Programme.
• Detective Services: R518.6 million (97.4% expenditure) • Crime Intelligence: R19.2 million (99.6% expenditure) • Protection and Security Services: R9.7 million (99.7% expenditure) R’000 Programme Administration Visible Policing Detective Services Crime Intelligence PSS Total Economic Classification Current payments Compensation of employees Goods and Services Transfers and subsidies Payments of capital assets Buildings and other fixed structures Buildings Other fixed structures Machinery and equipment Total Table 1: Appropriation statement for 2021/22 Adjusted Appropriation Final Appropriation Actual Expenditure Variance Expenditure as % of final appropriation Source: SAPS 2021/22 Annual Report 98.4% 100.0% 97.4% 99.6% 99.7% 99.1% 99.5% 99.7% 98.9% 100.0% 86.0% 65.90% 100.0% 29.5% 90.7% 99.1% 4.2 Expenditure at Programme level Programme 1: Administration.
At the end of the 2021/22 financial year, the Programme had spent R19.5 billion or 98.4% its Final Appropriation of R19.4 billion, thus underspending by R317.8 million.

8 168 The underspending was recorded under the Corporate Services subprogramme, which underspent with R288.9 million.

The Ministry subprogramme spent 71.5% of its budget or R44.7 million of its available Final Appropriation of R62.5 million.

Programme 2: Visible Policing.


At the end of the 2021/22 financial year, the Programme had spent R52.5 billion or 100% of its available budget of R52.6 billion, thus recording underspending of R12.8 million (this is not a sufficient amount to affect the percentage expenditure).

The underspending is a significant improvement compared to the previous financial year, during which the Programme underspent by R2.5 billion.
The total underspending was recorded in Crime Prevention subprogramme (in 2020/21, this subprogramme underspent with R2.4 billion).

At economic classification level, the bulk of the underspending was recorded on Goods and services.

Programme 3: Detective Services.

At the end of the 2021/22 financial year, the Programme had spent R19.7 billion or 97.4% of its available budget of R20.2 billion, thus recording underspending of R518.4 million.
Of the Programme’s four subprogrammes, only the Crime Investigations subprogramme spent 100% of the available budget.

The remaining three subprogrammes recorded the following: • Criminal Record Centre (CRC) subprogramme: Spent 92.7% of its available budget.

o Under economic classification, only 20% of the available budget was spent on machinery and equipment.

• Forensic Science Laboratory (FSL) subprogramme: Spent 89.4% of its available budget.
• Specialised Investigations (DPCI) subprogramme: Spent 92.8% of its available budget.

Programme 4: Crime Intelligence.

At the end of the 2021/22 financial year, the Programme had spent R4.27 billion or 99.6% of its available budget of R4.29 billion, thus recording underspending of R19.2 million.

Programme 5: Protection and Security Services.


At the end of the 2021/22 financial year, the Programme had spent R3.48 billion or 99.7% of its available budget of R3.49 billion, thus recording underspending of R9.7 million.

The largest underspending was recorded in the VIP Protection subprogramme, which underspent with R6.34 million.
4.3 Irregular expenditure In 2021/22, the Department had an opening balance for irregular expenditure of R1.7 billion, which is an increase compared to that of the previous financial year.

The Committee should note the balance has consistently increased over the past four-year period.
In 2021/22, the Department incurred irregular expenditure of R151.3 million 4.4 Fruitless and wasteful expenditure The Department had an opening balance of R14.0 million in fruitless and wasteful expenditure at the start of the 2021/22 financial year.

During 2021/22, the Department incurred R621 000 in fruitless and wasteful expenditure, which is an increase from the previous financial year.
During 2021/22, the Department recovered R286 000 and R5.836 million was written off, which gave the Department a closing balance of R9.04 million at year-end.

The AG noted fruitless and wasteful expenditure as a matter of emphasis in that fruitless and wasteful expenditure of R1.8 billion is still under assessment to determine whether it meets the definition.

9 169 Note: The SAPS has written off R1.4 million in interest-claims against the state, which was highlighted as a concern by the AG.
In 2020/21, R4.129 million was written off for interest paid on late payments by the Department.

4.5 Civil claims against the Police New claims: During 2021/22, a total number of 13 262 new civil claims were registered, valued at R67 615 742 066.77 (R67.6 billion).

Payments: A total of 4 598 payments (court orders and settlements), valued at R470 499 128.38 (R470.5 million) were made, of which arrest and detention claims were the highest pay outs, viz.
R346 220 870.81 (R346.2 million), which is 73% of the total payments.

The number of payments increased significantly compared to the previous financial year, during which a total of 2 899 payments (court orders and settlements) were made, to the value of R367.2 million, of which arrest and detention claims were the highest pay outs amounting to R239.2 million (R239 299 759.27).
Pending claims: A total number of 46 020 claims, valued at R112 154 944 454.37 (R112.1 billion), were still pending, as at 31 March 2022.

In 2021/22, there were 12 733 civil claims for wrongful arrest and detention, amounting to R12.1 billion.

In 2021/22, the AG raised, as a matter of emphasis, significant uncertainties in that the SAPS is a defendant in a number of lawsuits.
The ultimate outcome of these matters cannot be determined and no provision for any liability that may result was made in the financial statements.

The AG made the same finding in 2020/21.
In 2021/22, the Civilian Secretariat for Police Service undertook an analysis of the policy framework of SAPS civil litigation process (SAPS National Instruction 25 of 2019), including: • The management of civil claims lodged against the Minister of Police • The root causes and contributing factors to civil claims • The interventions for managing civil claims in the SAPS According to the Secretariat, the root causes of civil claims demonstrate that at the core of the claims against the SAPS are: • Poor conduct of members • Lack of discipline • Poor consequence management The analysis concluded that “the increase in civil claims against the Minister is not due to the lack of a regulatory framework, but rather due to the unlawful behaviour of members.” According to the Civilian Secretariat for Police Service, the SAPS must review its operational policy and interventions to manage civil claims because it is ineffective.
The review must focus on the proactive aspects of managing civil claims to effectively address the serious operational challenges and poor management.

4.6 Priority issues raised by Members The continuous underspending on the SAPS Budget has been raised as a serious concern by Members over the past couple of years.

Although the amount underspent is significantly less than in the previous 10 170 financial year, the SAPS should use their allocated budget effectively to fulfil their Constitutional mandate.
Coupled thereto is a lack of linkages or alignment between performance and expenditure.

Therefore, investing in initiatives may not have the desired impact on the reduction of crime.

The SAPS should invest more effort to show a link on how the Department’s significant budget is used to combat and prevent crime.
4.7 COVID-19 Expenditure By the end of March 2022, the SAPS had spent R73.9 million on COVID-19 related goods and services, which is a significant decrease compared to the previous financial year during which the Department had spent R1.7 billion on COVID-19 related goods and services.

In 2021/22, the bulk of expenditure on COVID-19 related goods and services was for consumable supplies (R56.2 million).

5.
5.

PERFORMANCE OVERVIEW Financial and service delivery performance should be read together when considering the performance of the SAPS.

There should be some alignment between performance and expenditure.

The focus of oversight should be placed on the quality of performance indicators and targets and whether these measure an improvement in service delivery.
5.1 Overall performance for 2021/22 At the end of the 2021/22 financial year, the Department achieved 70.1% of its performance targets (69 from 97 targets), which shows a decrease in performance compared to the 73.7% achievement rate in the 2020/21 financial year.

Overall the SAPS achieved 68 from 97 performance targets Achievement rate of 70.1% The figure below provides a summary of the Department’s performance at the end of the 2021/22 financial year against that of the previous financial year.
The performance on predetermined targets of SAP S P E R FO R M ANC E 2020/21 VS 2021/22 80,0% 81,0% 70,8% 73,1% 58,6% 51,7% 91,6% 83,3% 100,0% 71,4% 73,7% 70,1% 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% Administration Vispol 2021/22 2020/21 80,0% 81,0% 70,8% 73,1% Detective Services Crime Intelligence Protection and Security 91,6% 83,3% 71,4% 100,0% 51,7% 58,6% 11 Total 70,1% 73,7% 171 the Administration programme decreased slightly from 81% in 2020/21 to 80% in 2021/22.
Similar, the achievement rate of the Visible Policing programme decreased from 73.1% in 2020/21 to 70.8% in 2021/22.

The achievement of predetermined targets in the Detective Services programme decreased from 58.6% in 2020/21 to 51.7% in 2021/22, which is largely due to the poor performance in the Criminal Record Centre and Forensic Science Laboratory subprogrammes which achieved none of its targets in 2021/22.
The achievement rate on predetermined targets for the Crime Intelligence programme improved from 83.3% in 2020/21 to 91.6% in 2021/22, while that of the Protection and Security Services Programme decreased from 100% in 2020/21 to 71.4% in 2021/22 due to two security breaches recorded in 2021/22.
5.2 Programme performance for 2021/22 5.2.1 Programme 1: Administration Administration achieved 20 from 25 performance targets Achievement rate of 80% At the end of the 2021/22 financial year, the Administration Programme achieved 20 of its 25 targets, thus four targets were not achieved.
The following should be noted: Targets not achieved during the 2021/22 financial year Percentage compliance with the SAPS’ Ethics and Integrity Plan - Overall target achieved, but one sub-target was not achieved: • 100%% of Financial Management and Supply Chain Management financial disclosures submitted by 31 August 2021 (-7.91% points) Number of SAPS-owned firearms reported as stolen/lost • Target: Reduce to 508 (10%) • Achieved: 712 • Deviation: -204 Percentage decrease in the number of incidents of confirmed irregular expenditure.
• Target: 67.5% decrease • Achieved: Increased, by The number of new police stations established, as per the SAPS Infrastructure Development Programme • Target: 3 • Achieved: 2 • Deviation: -1 Note: The completion of the construction of Riemvasmaak Police Station, in the Northern Cape, was earmarked for April 2021.

This was due to COVID- 19 Regulations, community unrest/disputes, interference by local business forums, lack of skilled labour and sourcing of building materials.
Note: The SAPS bought 33 mobile contact points.

Percentage decrease in the number of incidents of confirmed fruitless and wasteful expenditure.

• Target: 70% decrease • Achieved: Increased, by 352,63% from 19 191,67% from 36 12 172 confirmed incidents, in 2020/21, to 86 confirmed incidents, in 2021/22.

• Deviation: Increased by 352.63% confirmed incidents, in 2020/21 to 105, in 2021/22.
• Deviation: Increased by 191.67% 5.3.1.1 Priority issues raised by Members Police Infrastructure In 2021/22, 33 mobile contact points were procured and deployed as part of the SAPSs Mobile Community Services initiative to “improve police presence, to ensure accessibility, to enhance service delivery in crime hotspots and to enhance and strengthen the relationship between communities and the police.” However, during a Parliamentary oversight visit in September 2022 to the Bergnek community in Limpopo, the community expressed significant concern about the lack of police resources and viewed the establishment of a Contact Point in Bergnek, resourced with one police member, as a negative and indicated that this shows that the police does not understand of care about the community’s significant crime challenges.
During 2021/22, the construction of three police stations was planned, but only two were finalised, including Mabieskraal and Moeka Vuma (North West).

During this period, security upgrades at eight police stations in Mpumalanga were completed.
In terms of the currents state of police station, the following should be noted: • Excellent condition: 1% (10 stations) • Good condition: 15% (168 stations) • Fair condition: 69% (801 stations) • Very poor condition: 15% (179 stations) Police Safety Strategy The amended Police Safety Strategy has been implemented, in all nine provinces and the National Police Safety Committee convened, quarterly, to ensure that all matters related to police safety are addressed on all levels.
A total number of 110 police members were murdered, 28 on duty and 82 off duty, during 2021/22, compared to 81 in 2020/21.

Note: The SAPS should also report on armed robberies/attacks at police stations and stolen items, such as firearms and ammunition.
Service delivery complaints In 2021/22, the Department received a total number of 11 060 service complaints, nationally, of which 8 395 or 75,90% were finalised, within 30 working days, exceeding the set target for the finalisation of 70% service complaints, within 30 working days.

Furthermore, a total number of 597 GBVF-related service complaints were received, nationally, of which 471 or 78,89% were finalised, within 14 working days.
From the 98 Domestic Violence Act-related service complaints received, nationally, 44 or 44,90% were finalised, within three working days.

SAPS Vehicles and Garages The SAPS has 54 994 transport assets, including 50 960 vehicles, 34 aircrafts, 137 boats, 157 machinery (e.g.

forklifts), 949 motorcycles and 2 757 trailers.

However, the 2021/22 Annual Report does not provide details on the status of SAPS garages, maintenance on, or servicing of transport assets.
Members have consistently raised concerns about alleged corruption taking place at garages, such as private vehicles being serviced at SAPS garages.

The SAPS should be encouraged to include the 13 173 maintenance of all transport assets, status and capacitation of SAPS garages and maintenance in their future Annual Reports.
Impact of COVID-19 As at 31 March 2022, there was a total number of 47 461 confirmed COVID-19 cases in the SAPS (1,28% of the total number of cases recorded), of which the most confirmed cases were recorded at head office and national divisions/components (10 519).

A total of 884 fatalities were recorded during 2021/22.
Organisational Structure Members have consistently raised concern about the organisational structure of the SAPS and that it has become clumsy organisation that is orientated towards administration and not service delivery.

The SAPS should indicate whether their organisational structure will be reviewed to address these concerns.
5.2.2 Programme 2: Visible Policing Visible Policing Programme achieved 17 from 24 performance targets Achievement rate of 70.6% At the end of the 2021/22 financial year, the Visible Policing Programme achieved 17 from 24 performance targets (7 targets not achieved).

One of the key events that took place under the Visible Policing Programme during the 2021/22 financial year was the July 2021/22 unrest.
According to the SAPS, “the civil unrest, in the Gauteng and KwaZulu-Natal Provinces, had a profound impact on the Country’s economy, but also on internal and external perceptions of the effectiveness of the Government’s safety and security capabilities.” The July/August civil unrest has also had a marked impact on the SAPS, as the total expenditure concerning the July/August civil unrest, is over R940 million.
Targets not achieved during the 2021/22 financial year per subprogramme Subprogramme: Crime Prevention: Achieved 8 from 15 targets (7 not achieved) Increase the number of identifiable stolen, lost SAPS firearms recovered • Target: Increase to 593 (10%) • Achieved: 215 • Deviation: -378 Percentage reduction in the number of contact crimes • Target: Decrease to 532 634 (7.48%) • Achieved: Reported contact crimes increased, by 13,5% from 535 869, in 2020/21 to 608 059, in 2021/22.
• Deviation: Increased by 13.5% Percentage of new firearm license applications finalised within 120 working days • Target: 90% • Achieved: 51.31% (73 344 finalised from a total of 144 895 received) • Deviation: -38.69% points Reason for deviation: Delay in the finalisation of Integrated Ballistic Identification System (IBIS) reports for firearm amnesty applications and AFIS reports for competency applications.

The finalisation of firearm 14 174 incenses is dependent on both reports.
Number of escapes from custody • Target: Decrease to 526 (2%) • Achieved: A total of 568 persons escaped from police custody.

• Deviation: -42 Note: 201 escapees were re- arrested within 24 hours after the incident occurred – Unclear whether the rest of escapees were re-arrested (367).
Percentage reduction in the number of contact crimes against women (18 years and above) • Target: Decrease to 39 497 (6.73%) • Achieved: Reported contact crimes against women increased, by 15,6% from 155 062, in 2020/21 to 179 208, in 2021/22.
• Deviation: Increased by 15.6% Percentage reduction in the number of contact crimes at Top 30 High Contact Crime Weight Stations • Target: Decrease to 80 761 (7.42%) • Achieved: Reported contact crimes at the identified Top 30 High Contact Crime Weight Stations increased, by 11,1% from 76 940, in 2020/21 to 85 510, in 2021/22.
• Deviation: Increased by 11.1% Percentage reduction in the number of contact crimes against children (below 18 years) • Target: Decrease to 36 839 (6.73%) • Achieved: Reported contact crimes against children increased, by 13,3% from 39 878, in 2020/21 to 45 197, in 2021/22.
• Deviation: Increased by 13.9% Specialised Interventions subprogramme 100% of targets achieved in 2021/22 (4 targets) 100% of targets achieved in 2021/22 (5 targets) Border Security subprogramme 5.3.2.1 Priority issues raised by Members Firearms Control From 1 April 2021 to 31 March 2022, a total number of 581 235 firearm-related applications were received from individuals and institutions.
The total number of applications received, comprises: • 226 205 competency certificates • 131 247 new firearm licences • 213 631 firearm licence renewals • 7 962 import/export permits • 1 726 commercial import/export permits • 464 temporary authorisations.

15 175 A total of 158 306 or 30,33% applications were finalised, within the stipulated turnaround time of 120 working days.

The number of outstanding applications is still a concern.
Rural Safety The reviewed National Rural Safety Strategy has been implemented in 2020 and will run until 31 March 2025.

The Strategy addresses rural safety as part of an integrated and holistic day-to-day crime prevention approach, addressing the needs of the total rural community, including the farming community as a focus area.
During 2021/22, a total number of 905 police stations were classified as rural or urban-rural mix police stations for the purposes of implementing the reviewed National Rural Safety Strategy.

The Rural Safety Strategy was implemented at 808 or 89,28% of the 905 identified rural or urban-rural mix police stations.

Rural communities face significant challenges with specific or unique crimes affecting these areas, such as stock theft.
The geographic spread of specialised Stock Theft Units is often not ideal and located in urban areas where the need is not pronounced.

Capacitation of Public Order Policing During the 2022 State of the Nation Address (SONA), President Ramaphosa mentioned that the staffing of the Public Order Police (POP) Unit of the SAPS will be brought to an acceptable level, with the aid of training courses in place.
In responding effectively to public unrest, the capacitation of public order policing, through recruitment, has been prioritised.

According to the SAPS, POP will receive an additional 4 000 members, during 2022/23.
An amount of R150 million was allocated to the specialised operational environment, as part of once-off allocations over a three-year period, for capital modernisation, including procurement of armoured vehicles and aircraft and a further R9 million allocation has been set aside for the procurement of protective gear for POP members.

The SAPS has 47 Provincial POP Units, as well as four reserve units, in Pretoria, Durban, Cape Town and Mbombela.
The human resource capability decreased, with 164, from 6 004 members, in 2020/21 to 5 840 members, in 2021/22, comprising of 5 456 SAPS Act members and 384 PSA personnel.

In terms of armoured vehicles, a total of 574 selective armoured vehicles were active, of which 256, were reported operable/serviceable.

Border safety South Africa has 72 ports of entry, including 53 land ports, nine sea ports and 10 international airports.
A total number of 3 782 planned crime prevention and combating actions were undertaken, including 258 roadblocks, 79 497 vehicle patrols, 1 395 checkpoints, 83 483 foot patrols and 3 553 vessel patrol inspections, to enhance the national security and territorial integrity at ports of entry.
In 2021/22, the SAPS embarked on a recruitment drive to capacitate Border Policing Reaction Teams, at Durban Harbour, Port Elizabeth International Airport, Port Elizabeth Harbour, Ngqura Harbour, King Shaka International Airport, Cape Town International Airport and Cape Town Harbour, in order to conform to international prescripts in the border policing environment.
The SAPS did not mention the Border Management Agency (BMA) in their 2021/22 Annual Report, yet the establishment of the BMA has a significant impact on the border security functionalities of the SAPS.

As part of the BMA, 200 guards have been deployed to control and patrol borders.

The Commissioner of the BMA1 has the same authority as the Commissioner of SAPS.
The guard will also be responsible for control on the movement of goods and people with a specific focus on illegal 1 The BMA Commissioner, Dr Mike Masiapata, was appointed in October 2021 with former SAPS Major General David Chilembe as Deputy Commissioner.
16 176 foreigners entering the country.2 The BMA has its own insignia and uniforms as well as a fleet of 15 Toyota Land Cruisers and the Minister of Home Affairs announced the further procurement of other tools or trade during his 2022 Budget Vote Speech in Parliament.

Impact of environmental design One of the key pillars of the 2022 Integrated Crime and Violence Prevention Strategy (ICVPS) is Pillar 5: Safety Through Environmental Design.
According to the ICVPS, “crime prevention through environmental design aims to reduce the causes of, and opportunities for criminal events and to address the fear of crime by applying sound planning, design and management principles to the built environment.” The SAPS should highlight specific challenges encountered through ineffective or bad environmental design and how stakeholder such as local municipalities are approached to fix street lights etc.
5.2.3 Crime statistics 2021/22 The SAPS started to release quarterly crime statistics in 2020/21, based on a Cabinet decision that was taken in 2016.

There was significant concern raised because the Department did not release annual crime statistics for the full financial year (only quarterly statistics), thus comparisons on annual statistics could not be done.

Although the 2020/21 crime statistics were included in text in the 2020/21 Annual Report, the datasets were not available.
In 2021/22, the SAPS has included a full set of crime statistics over a ten-year period for national and provincial datasets.

This should be commended as a positive step in transparency and accountability.

In 2021/22, overall crime increased by 8.7% compared to the previous financial year.

All main categories, except property-related crimes, increased significantly over this period.

Contact crimes increased by 13.5% compared to the 2020/21 financial year.
All categories of contact crimes increased across this period, with murder increasing the most by 26.6%.

Total sexual offences increased by 14.2% in 2021/22 compared to the previous financial year, with rape increasing by 15.2%.

All subcategories of aggravated robbery increased during 2021/22 compared to the previous financial year.

Robbery of cash-in-transit increased by 550% from two such robberies in 2020/21 to 13 in 2021/22.
Crimes committed against women increased, by 15,6% from 155 062, in 2020/21 to 179 208, in 2021/22.

Murder, sexual offences, common assault and attempted murder contributed to the increase.

Crimes committed against children increased, by 13,3% from 39 878, in 2020/21 to 45 197, in 2021/22.
According to the SAPS, the overall increase can be attributed to the following eight factors:3 1) A lack of intelligence/information to guide planning 2) Failure to deploy adequate resources at identified hotspots 3) Inadequate operational readiness at police stations to deploy during operations 4) A lack of key infrastructure in informal settlement areas making it difficult to police 5) High unemployment rate 6) Illegal shebeens that operates for long hours 7) The proliferation of illegal firearms 8) Community negativity towards the police, coupled with high moral decay According to the SAPS, reported contact crime at the Top 30 High Contact Crime Weight Stations increased, by 11,1%, from 76 940, in 2020/21 to 85 510, in 2021/22.
2 https://businesstech.co.za/news/government/605642/major-border-change-for-south-africa-takes-effect-this-week/ 3 SAPS 2021/22 Annual Report, page 155 17 177 There was a significant increase in the following 10 police station precincts: 1) Cape Town Central (Western Cape) increased by 54,8%; 2) Phoenix (KwaZulu-Natal) increased by 34,1%; 3) Durban Central (KwaZulu-Natal) increased, by 32,3%; 4) Harare (Western Cape) increased by 30,7%; 5) Kagiso (Gauteng) increased by 29,4%; 6) Temba (Gauteng) increased by 23,5%; 7) Johannesburg Central (Gauteng) increased by 21,8%; 8) Alexandra (Gauteng) increased by 21,3%; 9) Jeppe (Gauteng) increased by 18,7%; and 10) Randfontein (Gauteng) increased by 17,1%.
5.2.4 Programme 3: Detective Services Detective Services Programme achieved 15 from 29 performance targets Achievement rate of 51.7% The Detective Services Programme achieved 15 of its 29 performance targets, thus not achieving 14 targets at the end of the 2021/22 financial year.

The underperformance is mainly recorded in the Criminal Record Centre and Forensic Services Laboratory subprogrammes which achieved none of its performance targets in 2020/21.
The subprogramme also recorded significant deviations between the targeted and achieved performance.

The Directorate for Priority Crime Investigation (DPCI) or Special Investigations subprogramme achieved 100% of its targets in 2021/22.
The following should be noted: Targets not achieved during the 2020/21 financial year per subprogramme Subprogramme: Crime Investigations: Achieved 8 from 14 targets (57.1%) Percent increase in detection rate for contact crimes • Target: 55.77% • Achieved: 46.36% (376 784 from a total of 812 808) • Deviation: -9.41% points Percentage increase in detection rate for crimes committed against children under 18 years (murder, attempted murder, all sexual offences, common assault and assault GBH) • Target: 70,15% • Achieved: 61.84% (36 438 from a total of 58 921) • Deviation: -8.31% Percentage increase in detection rate for contact crimes at the identified 30 high crime weight stations • Target: 40% • Achieved: 33.50% (40 362 from a total of 120 498) • Deviation: -6.5% points Percentage increase in detection rate for crimes committed against women 18 years and above (murder, attempted murder, all sexual offences, common assault and assault GBH) • Target: 75.25% • Achieved: 69.97% (148 249 from a total of 211 876) • Deviation: -5.28% points Percentage of identified drug syndicates neutralised with arrests • Target: 60% • Achieved: 36.36% (4 from a Percentage of identified organised Criminal groups neutralised with arrests • Target: 60% • Achieved: 20% (2 from a total of 11) total of 10) • Deviation: -23.64% • Deviation: -40% points Reason for deviation The shortage of detectives 18 178 with specialised investigative skills required for the environment, significantly affects the ability to address the complexity of organised crime.
Subprogramme: Criminal Record Centre: Achieved 0 from 3 targets (0%) Percentage of results of trial updated in respect of guilty verdicts • Target: 95% of results of trial (guilty) updated, within 20 calendar days • Achieved: 91,87% (131 602 from a total of 143 243) of results of trial (guilty) updated, within 20 calendar days.
• Deviation: -3.13% Percentage of results of trial updated in respect of not guilty verdicts • Target: 95% of results of trial (not guilty/withdrawn) updated, within 20 calendar days • Achieved: 94.73% (731 564 from a total of 772 233) of results of trial (not guilty/ withdrawn) updated, within 20 calendar days.
• Deviation: -0.27% Percentage of original previous conviction reports generated • Target: 95% original previous conviction reports generated, within 15 calendar days • Achieved: 91,08% (832 868 from a total of 914 397) of original previous conviction reports generated, within 15 calendar days.
• Deviation: -3.92% points Subprogramme: Forensic Science Laboratory: Achieved 0 from 5 targets (0%) Percentage of routine case exhibits (entries) finalised • Target: 75,00% within 35 calendar days • Achieved: 22.75% (30 746 from a total of 135 147) • Deviation: -52.25% points Reason for deviation: - The lack of maintenance on infrastructure/building by the DPWI, especially on environmental conditions, good laboratory and building- related equipment contributed to the underperformance, e.g.
air conditioner equipment not repaired in time.

- High volumes of backlogs generated, during 2019, owing to the lack of consumables and maintenance contracts.
Percentage of case exhibits (entries) not yet finalised exceeding the prescribed time frame • Target: Backlog not exceeding 10% of registered case exhibits (entries) • Achieved: 57.46% (308 186 from a total of 536 350) • Deviation: -47.46% points Reason for deviation: - The lack of maintenance on infrastructure/building by the DPWI, especially on environmental conditions, good laboratory and building-related equipment contributed to the underperformance, e.g.

air conditioner equipment not repaired in time.
- High volumes of backlogs generated, during 2019, owing to the lack of Percentage of non-routine case exhibits (entries) finalised • Target: 70,00% within 113 calendar days • Achieved: 51.38% (2 042 from a total of 3 974) • Deviation: -18.62% points Reason for deviation: - The lack of maintenance on infrastructure/building by the DPWI, especially on environmental conditions, good laboratory and building-related equipment contributed to the underperformance, e.g.
air conditioner equipment not repaired in time.

- High volumes of backlogs generated, during 2019, owing to the lack of consumables and maintenance contracts.

19 179 - Periodic flooding at the laboratory, in KwaZulu- Natal impacted negatively on performance and service delivery.

- Periodic flooding at the laboratory, in KwaZulu- Natal impacted negatively on performance and service delivery.

consumables and maintenance contracts.


- Periodic flooding at the laboratory, in KwaZulu- Natal impacted negatively on performance and service delivery.
Percentage of Ballistics Intelligence (IBIS) case exhibits (entries) finalised • Target: 95,00% within 35 Percentage of Biology DNA Intelligence case exhibits (entries) finalised • Target: 80,00% within 90 calendar days calendar days • Achieved: 91.16% (59 659 from a total of 65 441) • Deviation: -3.84% points • Achieved: 8.78% (22 244 from a total of 253 428) • Deviation: -71.22% Reason for deviation: - Lack of integration between the Starlab (DNA processing system) and the FSLAdmin System delayed the production output of the forensic product.
The process is supposed to be an automated process.

Assistance from the SAPS Technology Management Services and SITA was required, from time to time, to release the sample from Starlab, owing to the lack of integration.

Reason for deviation: - The FSL Admin System is not configured to process case files, in bulk.
- A lack of consumables (fomamide (HiDi)) for the Crime Index (CI) and Reference Index (RI) Systems, Polymer POP-4 for 3130XL and POP for 3500XL) and Isopropanol to prepare the working solution in the CI and RI Systems, for two weeks.

- A lack of spin columns used to process semen samples (GBVF) in the manual system, for two months.

- A lack of alcohol for sample submission (manual, CI and RI System), for seven days.

- The STRLab System was not functional to print a statistical report, for five days.
20 180 The performance of the Forensic Science Laboratory subprogramme has seen a consistent decrease over the past four financial years, with the backlog in DNA analysis rising sharply to unacceptably high levels of case exhibits not finalised within 90 days.

As at the end of March 2022, the backlog of case exhibits (entries) was at 57,46%, compared to 84,56%, in 2020/21.

A total of 308 186 case exhibits (entries) are backlogged.
During 2021/22, the SAPS received a total number of 536 350 case exhibits (entries), compared to 355 648 in the previous financial year.

A total number of 457 990 or 85,39% case exhibits (entries) were finalised, in 2021/22, compared to 130 353 or 36,65% case exhibits (entries) finalised, in 2020/21.
In 2021/22, a total number of 135 147 routine case exhibits (entries) were received, of which 30 746 or 22,75% were finalised, within 35 calendar days, compared to 27 983 or 32,23% finalised, in the previous financial year.

The FSL achieved a completion rate of 51,38% or 2 042 from a total of 3 974 with regard to non-routine case exhibits (entries), within the planned turnaround time of 113 calendar days, compared to 61,70% or 1 226 from a total of 1 987, during the previous financial year.
A total of 8,78% or 22 244 biology intelligence case exhibits (entries) were finalised within the planned turnaround time of 90 calendar days, during the reporting period, compared to 14,59% or 706 biology intelligence case exhibits (entries) finalised, during 2020/21.

In 2021/22, the size of the National Forensic DNA Database stood at 856 814 forensic DNA profiles (in 2020/21 the size was 743 730 and in 2018/19, there were 1 616 535 profiles on the database).
In 2021/22, a total of 183 289 DNA profiles were added to the DNA Database and 49 653 profiles were expunged.

The performance target for taking buccal samples from Schedule 8 offenders is in the Crime Investigations subprogramme, but relates directly to the utilisation of forensic investigative aids in the investigation of crime and the enhancement of the DNA database.

During 2021/22, 128 515 buccal samples were taken from a total number of 154 879 suspects arrested for Schedule 8 offences.
A total number of 334 944 evidence collection kits were procured during 2021/22, valued at R72 079 885.23.

A total number of 524 076 evidence collection kits were distributed to end-users from orders received, in 2021/22 and buffer stock carried over from the 2020/21 financial year, in order to enhance the investigation of crime.
Upon requisitioning, these kits were distributed to police stations and units in a controlled manner, while a reasonable buffer stock was kept on hand at the provisioning stores, in Pretoria, Cape Town and Kwazulu-Natal for a consistent supply of evidence collection kits.

5.2.4.1 Directorate for Priority Crime Investigations (DPCI) The Directorate for Priority Crime Investigations (DPCI) achieved 7 from 7 performance targets and recorded an achievement of 100% with most targets over-achieved.
During 2021/22, a total of 2 809 arrests were effected, compared to 2 253 in the previous financial year, which is an increase of 556 arrests.

Convictions amounting to 296 166 charges were secured in court, compared to 38 411 charges in the previous financial year, which is an increase of 257 755 charges.

21 181 Seizures with an estimated value of R697 million, consisting of counterfeit goods, precious metals and wildlife, as well as R2 billion in narcotics.
5.2.5 Programme 4: Crime Intelligence Crime Intelligence Programme achieved 11 from 12 performance targets Achievement rate of 91.6% The Crime Intelligence Programme achieved 11 of its 12 performance targets of the 2021/22 financial year, which is a performance rate of 91.6%.

It should be noted that a high achievement rate on performance indicators does not indicate that the Crime Intelligence Division operated optimally during the 2021/22 financial year.
The identified failures in the early detection capabilities during the July 2021 serves as an example.

Target not achieved during the 2021/22 financial year Percentage of arrests of identified transnational crime suspects facilitated, in relation to requests received from INTERPOL member countries.
• Target: 100% • Achieved: 92.59% (25 from a total of 27 requests facilitated) • Deviation: -7.41% Reason for deviation: The full extradition documents were not received from the requesting countries for the SAPS to facilitate the arrests within the reporting time frame 5.2.6 Programme 5: Protection and Security Services Protection and Security Services Programme achieved 5 from 7 performance targets Achievement rate of 71.4% The Protection and Security Services Programme achieved five of its seven performance targets for 2021/22, thus not achieving two targets.
Targets not achieved in 2021/22 Protection and Security Services Static Protection Subprogramme Number of security breaches at identified government installations and identified VIP residences • Target: Zero security breaches • Achieved: Two security breaches • Deviation: -2 Reason for deviation - Housebreaking and theft at a VIP residence and arson, at Parliament, due to insufficient and dysfunctional security measures on Presidential Protection Services Static Protection Subprogramme Number of security breaches at identified government installations • Target: Zero security breaches • Achieved: One security breach • Deviation: -1 Reason for deviation - Member not adhering to SOPs.
- Consequence management to be instituted.

22 182 site; insufficient members to cover all posts, in terms of the Static SOPs (i.e., two members per post); and extended mandate.

- Insufficient visits by commanders and Static Rapid Response.

Provision of in-transit protection • During the period under review, in-transit protection was provided to 62 national and 124 provincial dignitaries, as well as 17 ad hoc and 15 foreign dignitaries that visited South Africa.
• There was a total number of 15 274 South African VIP movements within South Africa and abroad.

No security breaches occurred during the protection of South African VIPs, within South Africa, during major/special, national or provincial events, or during visits by foreign VIPs to the country, as well as on visits abroad, by South African VIPs.
Provision of static protection • Operational protection was provided at one major event, three special events and 79 provincial events, including the State of the Nation Address (SONA), State of the Province Addresses (SOPAs), the African National Congress (ANC) January 8 Statement and Manifesto Launch, National Executive Committees and Cabinet Lekgotlas.
• During 2021/22, a total number of 85 054 protection services were provided by 14 Static Units, which covered 83 identified VIP residences and 40 strategic installations, which are located throughout South Africa, as well as 11 buildings occupied by the SAPS.

Two security breaches occurred, a housebreaking and theft at a VIP residence and arson, at Parliament.

6.
6.

HUMAN RESOURCE MANAGEMENT 5.3 Establishment and personnel changes At the end of the 2021/22 financial year, the SAPS had 176 180 employees (compared to181 344 in 2020/21) against a year-end establishment of 175 345.

As such, the Departments has 835 more employees that is funded and has a negative vacancy rate of 0.5%.

All budget programmes of the SAPS, except Detective Services, have slightly more personnel that is allowed.
The Detective Services programme had a vacancy rate of 2.3% at the end of March 2022.

During the 2021/22 financial year, the SAPS recorded total expenditure of R78.4 billion on compensation of employees.

At the end of the 2021/22 financial year, 5 574 personnel left the employment of the Department, of which the majority was due to resignation (1 901), followed by retirement (1 786) and death (1 228).
According to the Department, the most prominent reasons for employees resigning from the Service, was due to more lucrative work prospects, including better compensation opportunities.

The decrease in retirements could be as a result of the early retirement without penalisation initiative that took place, between March 2020 and March 2021, or owing to the fact that there was an increase in resignations.
Approval was granted for the recruitment of 3 000 new entry level police trainees, during 2019/20, compromising of 2 000 current serving PSA employees to the Police Service Act and 1 000 current serving reservists as permanent members.

The Minister of Police directed that 7 000 additional trainees 23 183 need are to be enlisted, by 1 April 2022 and additional funding was made available by National Treasury for the enlistment of the additional trainees.
5.4 Police/Population Ratio In 2020/21, the Department had a fixed establishment of 176 180 employees, of which 139 901 were SAPS Act employees and 36 279 were Public Service Act employees.

Over the last eight years (2014/15 to 2021/22), the police/population ratio4 increased year-on-year.

The generally accepted benchmark is one police officer to 450 people, as such, the SAPS is within the benchmark.
However, the police/population ratio is highly dependent on the crime level of an individual country and one size (or ratio) does not fit all.

In 2014/15, the police/population ratio was one police member to 358 citizens (1:358) compared to a police/population ratio of one police member to 430 citizens (1:430) in 2021/22.
The table below illustrates the increase in the police/pollution ratio over the past eight years between 2014/15 and 2021/22: Table 3: Changes in the police/population ration over eight years Financial year 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 SAPS Act Employees 150 950 151 834 151 651 150 791 150 855 147 035 144 253 139 901 Police/Population ratio 1:358 1:362 1:369 1:375 1:383 1:400 1:413 1:430 Source: SAPS Annual Reports 2014/15 – 2021/22 5.5 Section 35 Terminations The SAPS did not award any section 35 terminations during 2021/22.
5.6 Regulation 47 Appointments/promotions In 2021/22, the SAPS did not make any Regulation 47 appointments.

Under section 47(n) of the 2018 SAPS Employment Regulations, the National Commissioner may upon written motivation and in consultation with the Minister, promote an employee into a post without advertising the post.

This section of the Employment Regulations (section 45 of the 2008 Employment Regulations) has been an area of serious contention in the past, especially between 2015/16 and 2017/18.
During a previous Portfolio Committee meeting that focused on SAPS promotions, POPCRU stated that regulation 47 proportions are grossly misused and that the careers of many police members had been stifled by this misuse.

The table below illustrates the point.

The Committee should be cognisant of the possibility of abuse.
Table 4: Regulation 47 Appointments / Promotions from 2013/14 to 2021/22 Financial year 2021/22 Number of Regulation 47 Appointments / Promotions 0 4 The Police/Population ratio is calculated on SAPS Act employees only and not the fixed establishment (that includes administration personnel).

24 184 Financial year 2020/21 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 Number of Regulation 47 Appointments / Promotions 3 6 2 47 83 41 10 1 7.
COMMITTEE OBSERVATIONS The Committee made the following observations: 1) The Committee welcomed the presentation made by the Office of the AG and commended the professionalism displayed.

The Committee further appreciated the objective assessment made by the Office of the AG.
2) The Committee raised concern about the apparent systemic institutional, management and administrative crises in the Department as identified by the Office of the AG and noted that these should not arise in a professional administration.

It was noted that most of the Committee’s attention, when assessing performance, is focussed on crime statistics, but that more focus should be placed on the broader management issues affecting the Department and leading to a decline in police performance.
3) The Committee raised concern about the continuous AG findings on compliance with legislation, especially in the Supply Chain Management environment.

Members also the lack of consequence management in the Department, especially related to the incurring of irregular, and fruitless and wasteful expenditure.
The Committee questioned whether the Office of the AG is satisfied with the steps taken by the Department to implement consequence management to deter the incurring of irregular, unauthorised, and fruitless and wasteful expenditure and noted that the Committee needs deeper insight into this area to effectively hold the Department and Minister to account.
The Committee further noted that irregular, unauthorised, and fruitless and wasteful expenditure is tantamount to underspending as the intended funds are not utilised in a responsible and economic manner to improve policing services at local policing level.

The Office of the AG explained that the framework set by National Treasury provides 90 days for investigations into whether possible irregular and fruitless and wasteful expenditure conforms to the definition thereof.
After confirmation is made, the process of consequence management starts, but there is no set timeframe in which these steps must be concluded.

The main challenge that occurs is when employees leave the employment of the Department, in which case consequence management cannot be implemented.

The Office of the AG recommended that consequence management should start from the most recent cases where consequence management steps can be taken.
It was further mentioned that consequence management steps must be expedited.

The lack of urgency in addressing these cases might signal that this behaviour is condoned and not taken seriously.

25 185 4) The Committee raised concern about the continuous and consistent decline in the Detective Services Programme, which is most evident in the Forensic Science Laboratory subprogramme.
It was noted that the misalignment between expenditure and the achievement of performance targets within the Detective Services Programme points to a serious problem.

The Committee further raised concern about the decline in the personnel numbers of the Detective Services Programme due to a lack of appropriate remuneration compared to colleagues in other components, such as Visible Policing.
It was further noted that Detectives require highly specialised skills to conduct investigations and that this should be recognised and rewarded.

Many trained detectives are transferring to other components, like Visible Policing, for better remuneration.

The loss of skills in the Detective Services Programme should be addressed as a matter of urgency as the positive prosecution of cases are dependent on the quality of investigations.
The Minister of Police raised concern about the continuous reductions to the SAPS budget.

He acknowledged that the number of police officers are dwindling and highlighted the changes in the pollution/police ratio since 2010.

The Minister further stated that the COVID-19 lockdown had a significant impact of the intake and training of new recruits.

The Department had received approval to recruit and train 10 000 new recruits, but this is not sufficient to address the critical shortage in personnel.
The Minister further indicated that, of this total (of 10 000 new recruits), 4 000 recruits are allocated to the Public Order Policing Units based on the recommendations made by the Farlam Commission of Enquiry.

In relation thereto, the capacity of the Public Order Policing Units should be at 12 000 but is currently at 5 000, thus even with the additional personnel allocation, the Units are still under-resourced.
In relation to overall policing numbers, the Minister indicated that there are not enough police officers in Visible Policing to prevent crime and that the numbers are not comparable to other countries where there is high police visibility.

Despite an application to National Treasury to increase the number of police recruits, an intake of only 5 000 was approved.
The Department stated that the number of detectives has declined significantly over recent years and that the SAPS has approximately 17 000 detectives, which is not sufficient.

The Department indicated that a review of service allowances is underway which has not been increased over many years.

5) The Committee noted the comments made by the Office of the AG in terms of the reactive approach by the Department, whereas the mandate should be proactive in preventing crime.
The Committee questioned what steps can be taken by the Department to measure targets that are more proactive in nature.

The Committee further questioned the manner in which targets are developed and whether the Office of the AG has any input into the planning of performance targets.

The Committee further raised concern that targets are generally set too low and must be increased.

The Committee proposed that performance targets should be set by the Department in consultation with the Committee.
The Office of the AG indicated that targets should be benchmarked against the resources available in the various budget programmes of the Department to ensure that target can be met during a financial year.

In terms of the proactive versus reactive nature of policing targets, it was noted that the objective of the Visible Policing Programme refers to proactive policing strategies to prevent crime and the AG focussed its audit specifically based on the proactive 26 186 targets to prevent crime.
Performance targets must be aligned to the objective of Departmental Programmes.

The Department indicated that the SAPS is a service-orientated organisation and, as such, it is challenging to identify targets that are reflective of the different programmes.

The DPME has implemented a results-based approach to planning which directs Departments to include outcome or impact indicators in its Annual Performance Plans.
The Departments stated that, for instance, the ultimate outcome of the Visible Policing Programme is the absence of crime (or a significant yearly reduction of crime).

The Department further indicated that proactive measures on crime prevention are included in lower level planning documents such as Annual Operational Plans.
The development of result-based indicators also has to take into account priorities set out by the President in his State of the Nation Address (SONA), the Minister of Police and through the MTSF.

The Department noted the AG’s focus on the target included in the Visible Policing Programme to conduct awareness campaigns as a proactive measure to prevent crime.
The Department highlighted the need to reduce the number of annual performance targets and indicated that the majority of targets are legacy indicators.

The Department aims to be responsive to new priorities that arise such as gender-based violence and femicide (GBVF).

The Department further indicated that the focus should be placed on the apex indicators relating to safer communities as per the MTSF and NDP.
The Department further noted that the Policing Strategy that will be presented to the Committee in November 2022 has various proactive measures to prevent crime imbedded into the Strategy.

In conclusion, the Department noted that there are areas with clean audits within the SAPS.

The Department will continue with engagement with the DPME and AG to refine performance targets to make sure that the correct services are measured within the Department to achieve its objectives and Constitutional mandate.
6) The Committee raised concern that the SAPS are seemingly failing in their prime responsibilities in terms of their Constitutional mandate, especially in the Visible Policing and Detective Services Programmes, which is delivering the core services of the Department.

It was further noted that the police are regressing in terms of performance and that serious intervention is needed to improve service delivery.

Members questioned what will be done differently to turn the Department around.
7) The Committee noted that problematic behaviour that could lead to criminality can and should be identified at school level and questioned what interventions can be put in place to deter and prevent this behaviour before it leads to serious criminality.

8) The Committee proposed the inclusion of police-orientated subjects in school curriculums to foster an interest in policing to create a possible pool for the recruitment of passionate police officers.
9) The Committee raised concerns about the low targets set in the Detective Services Programme and the lack of alignment between expenditure and the achievement of targets.

It was further noted that value for money is not measured and that the reported achievements are not felt by citizens of the country.
10) The Committee raised concern around the delays identified in the development and implementation of the Integrated Case Docket Management System (ICDMS) and the 27 187 Integrated Person Management (IPM) System.

The Department indicated that SITA was given a mandate to procure on behalf of the Department and that the Department may request SITA to give approval to procure independently.

The ICDMS is the entry point of the criminal justice system value chain and must be fully functional.
The Department expressed concern about the loss of expertise and skills in this environment as many information systems in the Department are aging.

However, the Department indicated that the process is being tracked and the risks are being mitigated.

It is expected that the system will be fully operation in the 2024/25 financial year.

The Department indicated that the procurement strategy for the IPM has been revised by SITA.
11) The Committee raised concern about the repeat findings made by the Office of the AG and suggested that the change must start with a review of the management structure of the SAPS in order to realise improvements in findings.

The Committee noted that continuous failure to implement consequence management is due to cover ups and police members protecting each other.

The Committee questioned whether it is in the AG’s mandate to recommend changes in management.
The Office of the AG noted that they can recommend skills development as such needs are identified during the audit.

The Minister of Police noted that there have been several changes in the management structure of the SAPS, notably the Head of Supply Chain Management, to address continuous challenges in the Supply Chain Management environment.
12) The Committee raised concern that appointments and promotions are often not based on performance and qualifications, but rather on more nefarious reasons such as nepotism.

The Committee noted that the performance of the police cannot improve if qualified personnel, equipped with the necessary qualifications, are not appointed.
13) The Committee raised concern about the relationship between the Department and the Office of the AG and questioned whether the Department takes the findings and recommendations by the Office of the AG seriously.

In response, the Office of the AG confirmed that there is a good working relationship between them and the Department and that recommendations are taken seriously by the Department.
14) The Committee raised concern about the poor record keeping systems in the SAPS that are continuously highlighted as a reason for adverse findings on the reliability of performance by the Department.

The Committee noted that these systems must be improved and that failing systems can lead to the loss of critical information, such as case dockets which, in turn, leads to victims of crime not receiving justice.
The Office of the AG highlighted that many of the measuring methods of targets are complex and there is much engagement on the crafting of targets and implementation of recommendations.

The Office of the AG further confirmed that the audit process is extensive and that records are inspected, and not only controls.

The Department acknowledge the challenge faced with record keeping and explained that it has more than 1 300 business units reporting to the national office.
The Department indicated that this is not an excuse, but does challenge the effectiveness of systems.

The Department further requested that timeframes for responding to findings by the Office of the AG be extended to allow additional time to respond to audit findings.

28 188 15) The Committee raised concern about dependencies on other Departments for the SAPS to perform their functions, such as SITA and DPWI, which has constrained the Department in performing critical functions.
The Committee questioned whether the SAPS can be allowed to procure various ICT independently from SITA to enable the Department to take full responsibility in this environment and especially for service delivery.
The Office of the AG noted the reasons provided by the Department for variances on performance, especially in the Forensic Science Laboratory subprogramme and that dependencies on DPWI were raised, but the Office of the AG highlighted that this has been a continuous reason without it being addressed.

The Office of the AG noted that the Department should have developed alternative action plans and processes to ensure the effective delivery on the mandate of the Department.
The Minister raised his concern on this point as the laboratory in KwaZulu-Natal has flooded several times over the past couple of years and that the Department is dependent on the DPWI to secure alternative accommodation.

The Minister further highlighted the fact that neither he nor the Deputy Minister have offices and are working from their private residences.
16) The Committee highlighted the comment made by the Office of the AG in terms of enhanced processing of forensic evidence case exhibits (entries), in that “overall from our understanding this is one of the core functions of the department, and the process is 100% within the control of the department however this was one of the worse performance targets when compared to other functions of the department”.

(Slide 14 of the AG’s presentation).


In light thereof, the Committee indicated that external dependencies should no longer be accepted as an excuse for continued under performance by the Forensic Science Laboratories.

The Committee further stated that the same excuses cannot be used without an action plan to address these areas of underperformance.
The Minister of Police indicated that the constant flooding of the KZN laboratory is having a significant impact on the entire environment, as case exhibits are redirected to other laboratories and overloading them.

The Minister further highlighted the fact that 16 contracts have collapsed in this environment under the management of the previous National Commissioner of Police, but indicated that the 16 lapsed contracts are in place currently and that machinery are being maintained.
The Committee resolved to conduct oversight visits to assess the condition of all forensic laboratories countrywide.

17) The Committee questioned the role of the Department’s Audit Committee to assist the Department to avoid repeat findings.

The Office of the AG works closely with the Audit Committee to implement action plans to ensure that repeat findings are addressed.

The Audit Committee noted that they are a key stakeholder in the combined assurance process of the Department.
The Audit Committee is an advisory oversight structure.

The Audit Committee noted that audit action plans are not fully implemented and that consequent management takes too long to be implemented.

Based on the responses provided, the Committee thanked the Audit Committee for the work they are doing.

The Minister of Police noted a challenge with some internal fighting within the Audit and Internal Audit Committees.
29 189 18) The Committee noted that the presentation of the Office of the AG should be regarded as a shame on the police and points to a failure in service delivery as the reliability of reported performance on important targets (especially on contact crime and recovery of lost/stolen firearms) were questioned by the AG and material differences were identified.
The Committee further raised concern that these material differences are confirming the previous fears of the Committee in that correct statistics are not presented by the Department, misleading the Committee.

The Committee reminded the Department that misleading Parliament is a criminal offence and further questioned information provided on the reduction of the DNA backlog and progress made on the CFR.

The Committee reiterated the importance of the Department providing accurate information to Parliament.
The Minister stated that the Department is working closely with the Statistician General of South Africa to ensure the reliability of crime statistics and requested to meet with the Office of the AG together with the Statistician General.

19) The Committee noted that various police stations are in chaos and that accurate information are not (and cannot be) received from these stations due to poor management, lack of consequence management and corruption.
The Committee indicated that the Minister and Senior Management must visit police stations to identify challenges and intervene timeously.

20) The Committee welcomed the presentation of the DPCI and commended the Directorate on the successes achieved throughout the 2021/22 financial year.
21) The Committee raised concern about the fact that, despite police stations being built, they are not operational and specific mention was made to the Chatty Police Station (Eastern Cape) that was completed in 2021/22 but not yet functional.

The Committee questioned the reasons for the delay in completion and operationalisation?

The Department indicated that the Chatty station is operational but that the personnel numbers are not ideal.
It has not been officially opened by the Minister of Police but is operational.

22) The Committee raised concern about the overspending on the budget for compensation of employees in the Protection and Security Services Programme.

The Department highlighted that the Programme is labour intensive and the increase in spending is largely based on overtime worked by personnel in this environment.
23) The Committee raised concern on the possible misuse of SAPS helicopters in attending to Ministerial engagements instead of crime prevention and reaction interventions.

The Department dispelled the concerns and indicated that helicopters are used in crime prevention operations.

24) The Committee questioned the number of cross-border operations conducted to recover stolen vehicles with a specific reference made to vehicles found in Malawi.
The Department indicated that many operations are held and indicated that getting vehicles back to South Africa is complex, but it is in progress.

25) The Committee requested clarity on the functions of the Government Security Regulator and whether the security personnel in Parliament fall under the mandate of the SAPS.

The Department explained that the protection services of Parliament does not report to the SAPS but to the Secretary of Parliament.
The Department indicated that they have engaged in talks to 30 190 possibly reconfigure the structure to clarify the different responsibilities within the Parliamentary precinct.

26) The Committee requested the Department to indicate the value of assets seized by the DPCI from the private sector.

The Directorate indicated that the figure provided includes assets seized from individuals from the private and public sectors.
27) The Committee noted concern on the misuse of Victim Friendly Rooms at police stations for other purposes, including office accommodation, and not for its intended purpose.

It was also noted that Victim Friendly Rooms are often not well resourced and are not ‘friendly’ at all.

The Department indicated that where victim friendly rooms are not available, such facilities are available at other institutions such as hospitals.
28) The Committee raised concerns about the increase in the number and monetary value of civil claims brought against the Department during the 2021/22 financial year.

The Department indicated that processes are underway to address the increases in the number of civil claims and to identify the stations that are contributing the most to civil claims and implementing interventions to address this challenge.
The Department further noted that most of the pending cases are dominus litis, meaning that the plaintive must approach the court in terms of obtaining set down dates.

It was further noted that the Department is putting proactive steps in place to identify cases that have been dormant for some time and are being worked off in terms of the Standing Operating Procedures of the Department.
The claim amounts are beyond the control of the Department and does not indicate the actual amounts that will be paid if so found.

29) The Committee raised concern on the significant increase in fruitless and wasteful expenditure over the past four financial years, and that adequately steps to address further increases are not recorded in future planning.

The Department indicated that various factors lead to these cases, but that steps are taken to down-manage the number of cases recorded.
30) The Committee raised concern about the backlog in cases not resolved that are older than 3 years and that this backlog translates into unsolved cases.

The Committee further raised concern about the caseload of detectives and indicated that the caseloads on individual detectives are too high and cannot be properly investigated.
The Committee further highlighted that fact that a guilty or not guilty verdict are highly dependent on the quality of investigations and that the quality must not be jeopardised due to insufficient personnel/detectives.

The Department noted the concerns of the Committee and highlighted that the closure of cases is a priority of the Department and is receiving special attention.
31) The Committee expressed concern on the continued backlog in the analysis of DNA case exhibits and that this is affecting the entire criminal justice system value chain and leading to a failure to bring perpetrators of gender-based violence and femicide (especially in rape cases) to account and securing justice for the victims of these crimes.

The Committee requested the Department to provide the latest backlog in DNA case exhibits.
The Minister indicated that specialists that have left the Department have been brought back to strengthen the capacity of the environment and allocations for overtime have been approved to increase productivity and working-hours to reduce the backlog in DNA analysis.

The latest backlog is 84 000 case exhibits.

The Department claimed that this backlog will be addressed by December 2022 and will only deal with the daily supply of DNA case exhibits.
31 191 32) The Committee questioned what charges that were brought against so-called zama zama’s or illegal miners that were arrested in Stilfonein as there are rumours that the suspects were arrested on charges of conspiracy to commit robbery, despite many firearms being confiscated during the specific operations.
The Directorate (DPCI) indicated that the suspects have not yet been arraigned, but that preliminary charges include conspiracy to commit robbery, possession of illegal ammunition and firearms and contravention of the Immigration Act.

Additional charges may follow.

33) The Committee raised concern about the lack of response to telephone calls from Members to the National Commissioner.
34) The Committee noted that a collaborative approach is needed to address illegal mining in South Africa and proposed that the South African National Defence Force (SANDF) should be involved in operations to address illegal mining.

The Minister of Police acknowledged that the SAPS cannot deal with illegal mining in isolation from other Departments, especially the Department of Home Affairs, to address challenges with illegal immigration and the Department of Defence in terms of border patrols.
The Minister indicated that the Department of Mineral Resources and Energy is key to addressing illegal mining, to rehabilitate mines and close disused mine shafts.

The Minister indicated that there are approximately 6 000 such mine shafts across South Africa.

35) The Committee raised concern about a lawyer allegedly carrying large sums of cash (R250 000.00) to pay bail for illegal miners that were arrested in Mpumalanga.
The Provincial Commissioner of Mpumalanga did not have knowledge of this, but noted that the allegations will be investigated.

However, the Minister questioned whether it is a crime in itself to carry large sums of cash.

The Committee questioned whether the Financial Intelligence Centre Act, 2001 (No 38 of 2001) are not used as a key piece of legislation to investigate serious allegations of money-laundering.

8.
8.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS Note: Recommendations must adhere to the SMART principle in being specific, measurable, achievable, relevant and time-bound.

This enables the Committee to track progress and identify missed milestones.

8.1.
8.1.

Recommendations to National Treasury The Committee recommends the following: 1) The Committee recommends that National Treasury review its decision to disallow the recruitment of additional personnel and that the Department should be adequately resourced, especially in terms of personnel, to execute their mandate.

It is recommended that 10 000 recruits be allowed for the 2023/24 financial year.
2) The Committee recommends that National Treasury should increase the budget of the Department to employ additional personnel, especially qualified and skilled detectives.

National Treasury could consider ring-fencing this funding to ensure that it is spent as intended.

3) The Committee further recommends that ring fenced funds should be made available to adjust the service allowances of detectives to retain skilled personnel and attract new detectives.

32 192 8.2.
32 192 8.2.

Recommendations on service delivery performance The Committee recommends the following: 1) The Committee recommends that the Department should review, refine and reduce their annual performance indicators to focus on apex priorities and the achievement of the Department’s Constitutional mandate.

Further thereto, the Department should submit the proposed revised performance indicators for the 2023/24 financial year for the Committee’s consideration by 20 January 2023.
2) The Committee recommends that performance indicators and associated targets must be benchmarked against the available resources of each budget programme to ensure that targets can be achieved.

A report on this benchmarking should be submitted to the Committee by 20 January 2023.

3) The Committee recommends that performance indicators should be more proactive in nature as opposed to reactive, focused on aspect such as crime prevention awareness campaigns.
4) The Committee recommends that the record-keeping system of the Department should be simplified to ensure reliable information.

Efforts should be made to investigate possible interventions such as decentralisation.

5) The Committee recommends that the Department should expedite consequence management steps against employees incurring irregular, and fruitless and wasteful expenditure.

Please see below reporting requirements in this regard.
6) The Committee recommends that consequence management should be implemented on the most recent cases of irregular, unauthorised, and fruitless and wasteful expenditure and then work backwards to older cases to ensure that members are held to account before leaving the Department.

The speedy finalisation and outcome of these cases should act as a deterrent to others in an effort to reduce and prevent incurrence of any expenditure incurred that is against the provisions of the PMFA.
7) The Committee recommends that the review of service allowances for Detectives should be completed before the end of 2022 and progress must be reported, in writing by 20 January 2023.

8) The Committee recommends that the Office of the AG considers the inclusion of timeframes in its regulations for consequence management steps to be finalised to prevent the Department from delaying the implementation of consequence management.
9) The Committee recommends that the Department of Public Works and Infrastructure should relocate the forensic laboratory located in Amanzimtoti as a matter of priority.

The Committee further recommends that the re-location should be finalized in the second quarter of the 2023/24 financial year.

The Department of Public Works and Infrastructure is requested to submit a progress report on 15 November 2022.
10) The Committee recommends that the Department should endeavor to clear the backlog in the analysis of DNA (biology) case exhibits by December 2022.

8.3.

Reporting requirements The Committee requests the following information to be submitted: 1) The Department should submit a report highlighting the material differences identified by the Office of the AG in reported performance on targets in the Visible Policing and Detective Services Programmes of the Department.
This report should be submitted by 05 November 2022.

33 193 2) The Department should submit an update on the down-management of cases of irregular, and fruitless and wasteful expenditure, and what consequence management steps were taken against personnel found guilty of contravening legislative prescripts.

This report should be submitted by 20 January 2023.
3) The Department should submit bi-annual progress reports on the implementation of its Audit Action Plan focused on addressing the material differences identified by the Office of the AG on various targets in the Visible Policing and Detective Services Programmes.

The first such report must be submitted by March 2023.

4) The Department should submit a report detailing the financial losses suffered by the continuous flooding of the forensic laboratory located in Ananzimtoti.
5) The Department is requested to submit an analysis report highlighting the key policing areas that are negatively impacted by external dependencies, specifically related to the Department of Public Works and Infrastructure, SITA and the Department of Health.

10.

CONCLUSION The Committee thanks the Ministry of Police, the National Commissioner, the Auditor General and the Management of SAPS for their efforts in creating the conditions for progress in the SAPS audit opinion.
The Committee is under no illusion that there is a still a long way to go to the ideal finding of a clean audit, but we are hopeful that this will be achieved in the foreseeable future.

The Committee thanks all its members and its staff for its work to ensure the SAPS and the Executive are held to account.

Report to be considered.

34 194 7.


BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE CIVILIAN SECRETARIAT FOR POLICE SERVICES (CSPS) PERFORMANCE FOR THE 2021/2022 FINANCIAL YEAR DATED 19 OCTOBER 2022.

The Portfolio Committee on Police, having considered the Annual Report and financial information of the Civilian Secretariat for Police Service for the 2021/22 financial year on 12 October 2022, reports as follows: 1.
INTRODUCTION In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

9 of 2009, the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations Reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations to the Minister of Finance to amend the budget of a National Department.
The Money Bills Amendment Procedures and Related Matters Act, section 5 (3), highlights focus areas on the budgetary review and recommendation report as: 1) Assess service delivery performance of departments given available resources; 2) Evaluate the effective and efficient use and forward allocation of resources (value for money in services delivered); and 3) May include recommendations on the forward use of resources.
The BRRR forms a source documents for the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS).

BRRRs must be submitted for tabling in the National Assembly after the adoption of the Appropriation Bill and prior to the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS), which is scheduled for 26 October 2022.
Mandate of the Committee The mandate of the Committee therefore is to fulfil its constitutional function to: • • Pass legislation; Scrutinise and oversee executive action and the organs of state including the South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA); Facilitate public participation and involvement in the legislative and other processes; and • • Engage, participate and oversee international treaties and protocols.
Structure of the Report This report is structured as follows: • Section 1: Introduction.

This section sets out the mandate of the Committee, the purpose of the Budgetary Review and Recommendation Report.

1 195 • Section 2: Overview of key focus areas.

This section includes the policy determinations of the National Development Plan (NDP), Medium Term Strategic Framework (MTSF), and the strategic focus areas of the Department for 2021/22.

• Section 3: Report of the Auditor-General of SA (AGSA).
This section provides a summary of the audit outcome of the Department for the 2021/22 financial year.

• Section 4: Financial overview.

This section provides an overview of Departmental.

• Section 5: Performance overview.

This section provides an overview of Departmental performance on predetermined key performance indicators and targets.

• Section 6: Committee observations: This section provides a summary of the observations made by the Committee during the 2021/22 Annual Report hearings.
• Section 7: Committee recommendations.

This section provides the recommendations made by the Committee following the 2021/22 Annual Report hearings.

• Section 8: Conclusion.

This section provides a conclusion of the report.

2.
OVERVIEW OF KEY FOCUS AREAS The Department’s strategic focus for 2021/22 and over the medium term includes the following: • Addressing the lack of trust in the police and improving police service delivery; • The need for a localised approach to addressing crime concerns; • Targeted implementation of the Provincial and Local Crime Prevention Frameworks and District Action Plans, in line with the District Development Model (DDM); • The implementation of the 2016 White Paper on Safety and Security; • Improving detective service and forensics, as well as facilitating the modernisation of the SAPS through an e-Policing Policy; • Focus on the finalisation and implementation of an Integrated Crime and Violence Prevention Strategy (ICVPS); and • Ensuring the implementation of a Partnership Strategy and Framework which seeks to mobilise key role-players and harness the social capital in communities by facilitating greater involvement of various community safety structures in the fight against crime.
In 2021/22, the Department will focus on the following priorities: • Strengthening community participation in the fight against crime, by Implementing crime prevention campaigns, o o Hosting provincial imbizos and establishing additional community safety forums at the municipal level; • Drafting and promoting constitutionally sound legislation to give effect to government policies related to policing.

• Regulating and monitoring compliance by the police service with relevant legal prescripts.
Medium Term Strategic Framework (2019-2024) The MTSF (2019-2024) is the implementation and monitoring framework for the NDP and is premised on three foundational pillars: a strong and inclusive economy, capable South Africans and a capable developmental state.

The MTSF proposes that the focus should be on implementation through getting all three spheres of government to work collaboratively.

A district development model will be implemented to coordinate implementation at local level.
The new model bridges the gap between the three spheres of government to ensure better coordination, coherence and integration of government planning and interventions.
There are seven priorities laid out in the MTSF as follows: • Priority 1: Capable, Ethical and Developmental State 2 196 • Priority 2: Economic Transformation and Job Creation • Priority 3: Education, Skills and Health • Priority 4: Consolidating the Social Wage through Reliable and Quality Basic Services • Priority 5: Spatial Integration, Human Settlements and Local Government • Priority 6: Social Cohesion and Safer Communities • Priority 7: A Better Africa and World The Civilian Secretariat plays a significant role in attaining Priority 6 outcomes with respect to Social Cohesion and the building of partnerships to fight crime.
The delivery mechanism to attain social cohesion and fighting crime is through the reduction of levels of contact crime through a reduction of crimes against women and children, implementing the draft integrated crime and violence prevention strategy after consultation.

It implies strengthened community partnerships, increased police visibility and increased trust in the police.
The Secretariat has a direct role in building such partnerships through community police forums and community safety forums in the community to increase trust in the police.

3.
3.

REPORT OF THE AUDITOR GENERAL OF SOUTH AFRICA (AGSA) The Department received an unqualified audit opinion with no material findings on performance, but had a matter of emphasis on the material underspending recorded of R12 million at year-end (R4.9 million in Programme 1: R3.5 million on Programme 3; and R3.5 million on Programme 4), which is significantly higher than the material underspending recorded in the previous financial year (R5.625 million).
The Department has recorded continuous underspending since its coming into operation in 2012.

The AG made no material findings on the reliability and usefulness of reported performance, compliance with legislation or internal control deficiencies.

4.

FINANCIAL OVERVIEW 2021/22 4.1.


Overall financial performance At the end of the 2021/22 financial year, the CSPS had spent R138.4 million or 91.6% of its Final Appropriation budget of R151.04 million, thus recording underspending of R12.6 million at year-end (this is a significant increase in the underspending recorded in the previous financial year of R5.6 million).
The underspending was recorded in all four budget programmes of the Department: • Programme 1: Administration - R4.9 million • Programme 2: Inter-Sectoral Coordination and Strategic Partnerships – R597 000.00 • Programme 3: Legislation and Policy Development – R3.5 million • Programme 4: Civilian Oversight, Monitoring and Evaluations – R3.5 million The table below shows the financial performance of the Department at the end of the 2021/22 financial year.
Adjusted Appropriation 67 518 Table 1: Appropriation statement 2021/22 Programme R’000 1.

Administration 2.

Intersectoral Coordination and Strategic Partnerships 25 999 237 197 Virement 3 Final appropriation 67 755 Actual Expenditure 62 837 Variance 4 918 % Spent 92.7% 26 196 25 999 597 97.7% 197 Programme R’000 3.

Legislation and Policy Development 4.


Civilian Oversight, Monitoring and Evaluations Total Adjusted Appropriation Virement Final appropriation Actual Expenditure Variance % Spent 23 437 (217) 23 220 19 641 3 579 84.6% 34 089 (217) 33 872 30 330 3 542 89.5% 151 043 - 151 043 138 407 12 636 91.6% Source: 2021/22 CSPS Annual Report The table below shows that the Department has continuously encountered challenges with spending, which has been mostly related to the Department’s fixed establishment (personnel).
In 2021/22, the underspending on all programmes can be attributed to vacant posts and the amount of R3,039 million represents 24.0% of the total underspending of R12,636 million.

However, the most significant event that affected underspending in 2021/22 remains the failure to re-locate office accommodation.
Table 2: Underspending over seven years 2014/15 to 2021/22 Financial year 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Underspending on total final appropriation Expenditure as a % of total final appropriation Variance on total final appropriation (R’000) 66.6% 89.8% 89.9% 94.4% 94.4% 96.3% 95.9% 91.6% 17 403 1 292 11 152 6 328 7 355 5 617 5 624 12 636 Source: CSPS Annual Reports: 2014/15 to 2021/22 At economic classification level, the Department recorded underspending as follows: • Current payments: Spent 92.2% • Transfers and subsidies: Spent 80.7% • Payments for capital assets: Spent 48.0% According to the Department, the goods and services budget was underspent with R8,500 million mainly due to the delays experienced with its relocation to new office accommodation.
The funds were specifically earmarked for the move, as well as the installation of ICT network and systems.

The same applies to payments for capital assets where the Department only spent 48.0% of the allocated budget of R1,921 million, leaving a balance of R998 000.

The Department has since relocated and is in the process of procuring office accommodation which will be managed through a Capital Investment and Asset Management Plan in future.

4.2.
4.2.

Expenditure per Programme 4 198 Programme 1: Administration: The programme had an Adjusted budget of R67.518 million, which increased to a Final appropriation of R67.755 million of which the programme had spent R62.837 million or 92.7%.

Thus underspending of R4.918 million was recorded.


According to the Department, the variance on this programme is attributed mainly to the delay in relocation to the new building which resulted in underspending on office accommodation and deliberate savings on Subsistence and Travel in order to cater for additional costs associated with the relocation.
Further thereto, the COVID-19 restrictions (first part of the financial year) contributed to the underspending, as well as a reduced transfer payment to SASSETA due to a recalculation in terms of the memorandum of understanding.

Programme 2: Intersectoral Coordination and Strategic Partnerships: The programme had an Adjusted appropriation of R25.999 million, which was increased to a Final appropriation of R26.196 million, of which the programme had spent 97.7%.
Thus underspending of R597 000.00 was recorded.

According to the Department, the variance on this programme is attributed to underspending due to the delay in relocation which resulted in underspending on capital assets which could only be acquired after relocation.

The restrictions on gatherings due to COVID-19 regulations also contributed to the underspending and as a result there was less travel as well as fewer community engagements with smaller numbers of people.
Note: Despite this, the Department overachieved on their performance target on izimbizo/public participation programmes held with communities.

Programme 3: Legislation and Policy Development: The programme had an Adjusted appropriation of R23.437 million, which was decreased to a Final appropriation of R23.220 million, of which the programme had spent 84.6% of its allocation, thus underspending by R3.579 million at year-end.
According to the Department, the variance on this programme is attributed to the delay in relocation which resulted in underspending on the purchase of Capital Assets, as well as COVID-19 regulation restrictions which prompted underspending on travel, costs associated with meetings and office supplies related expenditure.
Programme 4: Civilian Oversight, Monitoring and Evaluations: The programme had an Adjusted appropriation of R34.089 million which was reduced slightly to a Final appropriation of R33.872 million, of which the programme had spent 89.5%, thus leaving R3.542 million unspent at year-end.
According to the Department, the variance on this programme can mainly be attributed to underspending due to (1) vacant funded posts, (2) delay in relocation which resulted in underspending on the purchase of Capital Assets, as well as (3) COVID-19 regulation restrictions which prompted underspending on travel, costs related to meetings and office supplies related expenditure.

4.3.
4.3.

COVID-19 Spending At the end of the 2021/22 financial year, the Department had spent R176 988.28 on COVID-19 related interventions, of which the bulk of spending was on the procurement of cloth masks for all employees (R78 000.00), followed by the procurement of fumigation services after each confirmed COVID-19 case (R62 303.28).

4.4.
4.4.

Unauthorised expenditure 5 199 The Department did not incur any unauthorised expenditure during 2021/22, but has a large amount of historical unauthorised expenditure awaiting authorisation (R5.6 million) due to overspending of appropriated funds in 2015/16.

The Department restated the amount in the current financial year.

According to the Department, a letter was sent to National Treasury in March 2019 to request that the process be taken forward for authorisation of the amount by Parliament.
The process is ongoing.

4.5.

Irregular expenditure The Department has not incurred additional irregular expenditure in 2021/22, but the historic irregular expenditure from previous year amounts to R39.305 million.

Of this amount, R11.788 million was condoned and removed.

4.6.

Fruitless and wasteful expenditure The Department incurred R2 000.00 in fruitless and wasteful expenditure in the 2021/22 financial year, of which the total amount was recovered (traffic fine).
During the previous financial year, historic fruitless and wasteful expenditure amounting to R193 000 was written off and R11 000.00 was recovered.

As such, the Department’s closing balance was R32 000.00 at year-end.

5.

PERFORMANCE OVERVIEW 2021/22 The overall performance of the Department improved from 86% achievement on predetermined targets in 2020/21 to 92.3% in 2021/22.
Most of the budget programmes achieved 100% of their performance targets (many of which recorded over-achievement), with only the Administration Programme that did not achieve two performance targets.

At year end, the Department achieved 24 from a total of 26 targets in 2021/22.

The graph below shows the progression in budget programmes between 2017/18 and 2021/22.
/ 1 8 T O 2 0 2 1 / 2 2 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 7 6 % 0 0 1 % 0 0 1 % 0 0 1 % 0 9 % 5 8 % 2 9 % 6 8 % 6 8 % 1 8 % 8 7 % 6 8 % 5 7 % 8 7 % 6 6 % 0 5 % 0 5 % 8 3 120% 100% 80% 60% 40% 20% 0 , M O N I T O R I N G A N D E V A L U A T I O N T O T A L 6 200 95% 90% 85% 80% 75% 70% ACHIEVEMENT RATE OVER 5 YEARS 92% 86% 86% 81% 78% 2017/18 2018/19 2019/20 2020/21 2021/22 5.1.
Programme 1: Administration The graph to the left shows the progression in the overall performance achievement of the Department over a five-year period from 2017/18 to 2021/22.

It is clear that the performance on annual targets has improved during this period.

A slight regression in performance was recorded in the 2018/19 financial year, compared to the previous year, but had since improved.

During the 2021/22, only two targets were not achieved.
The Administration Programme achieved 66.67% of planned targets and had spent 92.7% of its budget allocation.

The targets that were not achieved were missed by a small margin.
Indicator Planned target 2021/22 Actual Achievement 2021/22 Deviation Reason for deviation Departmental Management Subprogramme 0 4 4 Number of joint consultative IPID / Secretariat forum meetings held per year in compliance with the Civilian Secretariat for Police Service Act, 2011 N/A Corporate Services Subprogramme Vacancy rate of not more than 7% of the total post establishment Not more than 7% 8.33% Percentage implementation of the Human Capital Strategy Percentage implementation of the Information and Communication Technology (ICT) Strategy 100% 100% 100% 100% Financial Administration Subprogramme Percentage of payments made to creditors within 30 days 100% 100% 7 (1.33%) The variation of 1.33% was as a result of the departure and internal promotion of some employees, which although positive, had an adverse effect on the vacancy rate.
N/A 0 N/A 0 0 201 Indicator Percentage of expenditure in relation to budget allocated Planned target 2021/22 98% Actual Achievement 2021/22 Deviation Reason for deviation 92% (6%) The delays encountered when moving to the new accommodation resulted in non- payment of SITA, furniture and accommodation charges.

The Department will continue to monitor the spending and adjust accordingly in line with the needs of the new offices.

5.2.
5.2.

Programme 2: Intersectoral Coordination and Strategic Partnerships The Intersectoral Coordination and Strategic Partnerships Programme achieved 100% of its annual performance targets and had spent 100% of its allocated budget.
Indicator Planned target 2021/22 Actual Achievement 2021/22 Deviation Reason for deviation Intergovernmental, Civil Society and Public-Private Partnerships Subprogramme Number of memorandum of understanding (MoU) signed with stakeholders per year to build safer communities Number of workshops facilitated with provincial secretariats and municipalities on the establishment of Community Safety Forums (CSFs) per year Number of provincial capacity-building workshops held on crime prevention policies per year 2 9 9 2 9 0 N/A 0 N/A 25 +16 There was a high demand for capacity building workshops in the Western Cape Province.
8 202 Indicator Number of Anti-Crime Campaigns conducted per year Planned target 2021/22 3 Actual Achievement 2021/22 8 +5 Deviation Reason for deviation The increase in reported GBV and gang-related cases, and the demand for additional campaigns, resulted in the over-achievement of the indicator.

The need to conduct additional CPF assessments resulted in the over-achievement of the indicator.

There was a need to conduct additional Izimbizo for the period under review.
2 5 +3 Number of assessment reports on implementing Community Policing Forum (CPF) regulations/ standards approved by the Secretary for Police per year Community Outreach Subprogramme Number of Izimbizo/public participation programs held with communities to promote community safety per year 8 11 +3 In terms of Community Safety Forums (CSFs), the CSPS plays a facilitation role by, amongst others, conducting workshops with Provincial Secretariats and municipalities to unpack the implementation requirements of the CSF policy and provide technical assistance where relevant.
During the period under review, the Department facilitated nine CSF workshops with provinces and municipalities.

Anti-crime campaigns are conducted in collaboration with public-private partners on the basis of agreed-upon initiatives through signed working agreements.

The campaigns are focused on social crime prevention initiatives on burning issues such as responsible alcohol trade and use, GBV, school and campus safety, and the protection of vulnerable groups.
The Department conducted a total of eight (8) anti-crime campaigns, exceeding the planned target due to the increased demand for additional campaigns in response to the rise in reported GBV and gang-related cases, particularly in the Western Cape province.

The Department held 11 Izimbizo / public participation programmes throughout 2021/22 to facilitated a platform for dialogue on crime prevention initiatives between communities and the Minister of Police.
These were held in the KwaZulu-Natal, Limpopo, Western Cape, Mpumalanga and Free State provinces.

5.3.

Programme 3: Policy Development and Research 9 203 The Policy Development and Research Programme’s performance remained at 100% compared to the previous financial year.

Despite this performance, the Programme had only spent 89.8% of its allocated budget.
Indicator Planned target 2021/22 Actual Achievement 2021/22 Deviation Reason for deviation Policy Development and Research Subprogramme Number of draft National Policing Policies submitted to the Secretary for Police Service for approval per year Number of research reports on policing and safety approved by the Secretary for Police Service per year Number of newsletters published on Safer Spaces per year Number of Bills submitted to the Minister for Cabinet approval per year 1 2 1 1 2 1 0 N/A 0 N/A 0 N/A Legislation Subprogramme 2 5 +3 The 3 Bills were fast-tracked for Cabinet approval given that they were prioritised on the legislative programme for 2021/22.
A key achievement of the Programme was the development of the ICVPS, which was approved by Cabinet on 23 March 2022.

The ICVPS replaces the 1996 NCPS, and serves as an implementation tool for the 2016 White Paper on Safety and Security.

The ICVPS focuses on the prevention of crime and violence in communities, and proposes a 'whole of government’ and ‘whole of society’ approach to combatting crime.
The approval of the ICVPS by Cabinet serves as a directive to all stakeholders across the three spheres of Government, including civil society organisations, to commence with the implementation thereof.

All affected government institutions across the three spheres are expected to make resources available to implement the ICVPS within their current budget allocation, through the APPs and IDPs.

The DDM is to be utilised as the implementing mechanism for the ICVPS.
Another key achievement during 2021/22 was the completion of a perception survey to assess perceptions and experiences of the public on the quality of service rendered by SAPS, with a specific focus on police visibility, and it focussed on the Top 30 police stations.

The Survey highlighted the following: • With regard to the level of trust in the police by communities, 54.85% of respondents do not have trust in the police, while 42.74% of the respondents expressed their confidence in the police.
In terms of general perceptions on the contributing factors leading to crime, unemployment, poverty and substance abuse were perceived to be the most prevalent factors.

Only a few respondents cited moral decay as a contributing factor to crime.
• 10 204 According to the Department, “the outcomes of the Survey pointed to the need for public education on the functioning of the criminal justice system (CJS) as a whole, as some of the perceptions by citizens are based on a general lack of understanding of the CJS value-chain.
The outcomes of the Survey also highlighted the need for more concerted efforts to involve communities in crime fighting initiatives through awareness campaigns and participation in community safety structures.” As at December 2021, there were 1 153 Community Policing Forum (CPF) structures established in 1 155 police stations across the country.

Based on an assessment, a total number of 772 CPFs were found to be functional at the end of 2021/22.
In 2021/22, the Criminal Law (Forensic Procedures) Amendment Bill was introduced in Parliament (December 2021) and was processed through Parliament.

5.4.

Programme 4: Civilian Oversight, Monitoring and Evaluation The Civilian Oversight, Monitoring and Evaluation Programme achieved 100% of its annual performance targets in 2021/22 and spent 89.54% of its allocated budget at year-end.
Indicator Planned target 2021/22 Actual Achievement 2021/22 Deviation Reason for deviation Police Performance, Conduct and Compliance Monitoring Subprogramme Number of Police Oversight Reports approved by the Secretary per year 3 4 +1 The consolidation of provincial reports on the National Monitoring Tool resulted in the over achievement.

Proper planning to be done in future to ensure that provincial reports are received on time for consolidation.
N/A 0 0 N/A 0 N/A Number of SAPS Budget and Programme Performance Assessment Reports approved by the Secretary per year Number of assessments reports on Complaints Management approved by the Secretary per year Number of reports on SAPS Implementation of IPID Recommendations approved by the Secretary per year 1 2 2 1 2 2 11 205 Indicator Number of monitoring reports on compliance and implementation of the Domestic Violence Act (98) by SAPS approved by the Secretary per year Number of reports on the implementation of and compliance to legislation and policies approved by the Secretary per year Number of assessment reports on police conduct and integrity approved by the Secretary for Police Service per year Number of reports on the functioning of the National Forensic DNA Database assessed per year Planned target 2021/22 2 Actual Achievement 2021/22 2 Deviation Reason for deviation 0 N/A 1 1 4 1 1 4 0 N/A 0 N/A 0 N/A Policy and Programme Evaluations Subprogramme Number of assessment reports on SAPS programmes approved by the Secretary of the Police Services per year Number of evaluation reports on legislation and policies approved by the Secretary for Police Services per year 1 1 1 1 0 N/A 0 N/A In 2021/22, the Department undertook an analysis of the policy framework of SAPS civil litigation process (SAPS National Instruction 25 of 2019), including: • The management of civil claims lodged against the Minister of Police • The root causes and contributing factors to civil claims • The interventions for managing civil claims in the SAPS According to the Department, the root causes of civil claims demonstrate that at the core of the claims against the SAPS are: • Poor conduct of members • Lack of discipline • Poor consequence management.
The analysis concluded that “the increase in civil claims against the Minister is not due to the lack of a regulatory framework, but rather due to the unlawful behaviour of members.” According to the Department, the SAPS must review its operational policy and interventions to manage civil claims because it is ineffective.

The review must focus on the proactive aspects of managing civil claims to effectively address the serious operational challenges and poor management.

12 206 5.5.
12 206 5.5.

Human Resource Management In 2021/22, the Department produced two reports on complaints management in the SAPS which contained recommendations for the National Commissioner aimed at strengthening the processes of dealing with service delivery complaints against SAPS members.

The Department currently has an approved establishment of 156 funded posts, of which 143 posts were filled at year-end.

This translated into a vacancy rate of 8.33%.


The Department employs three people with disabilities (PwDs), translating into 2,10% of the staff complement.

In terms of gender parity, 53% of the Department’s staff complement comprises females and 47% males.

In terms of gender equity in the Senior Management Structure (SMS) there are 15 females and 14 males.

In terms of youth employment, the Department employs 26 females and 20 males, inclusive of 5 interns (employees below the age of 35).
In the 2020/21 financial year, the Department had an overall turnover rate of 8.9%, of which the highest turnover was within the “highly skilled supervision salary band (levels 9-12)” at 14.29% turnover during 2021/21.

In total, 17 employees (11.89% of the total number of employees) left the employment of the Department, of which the majority of employees were transfers to other Public Service Departments (41.1% of the total number of employees that left the Department in 2021/22).
In terms of misconduct and disciplinary hearings in 2021/22, the Department issued 10 verbal warnings to employees.

6.

COMMITTEE OBSERVATIONS The Committee made the following observations during the 2021/22 Annual Report hearings of the Department: The Committee requested further details on the progress made on the amendments to the South African Police Service Act, 1995 and the Independent Police Investigative Directorate Act, 2011.
The Department indicated that, in terms of the SAPS Act, the challenges with the funding model of the CPFs are being resolved.

It was stated that the funding model is being refined and will be completed within the calendar year.

The Department indicated that as soon as the issues are addressed, the amendment Bill will be submitted to Parliament.
In terms of the IPID Act, the Department indicated that it has been presented to the Justice, Crime Prevention and Security (JCPS) Cluster of Cabinet and that next, it will serve before the full Cabinet before taken forward for submission in Parliament.

The Committee requested clarity on the nature of Anti-Crime Campaigns that were run by the Department in the 2021/22 financial year.
The Department indicated that the campaigns included those focussed on Gender-based Violence and Femicide, Responsible Liquor Trading Compliance Enforcement Programme, Youth Against Crime Through Sports in Western Cape, and assistance to the SAPS in the Minister’s campaign on the Safer Season Anti-Crime Campaigns.
The Committee raised concern about the high vacancy rate recorded by the Department at the end of the 2021/22 financial year, which led to underspending on the budget for compensation of employees.

This was further framed in the high unemployment rate affecting South Africa and whether the department has a policy to ensure a smooth transition when employees leave the employment of the Department and new employees are appointed.
The Department acknowledges that the vacancy rate is high for a Department of its size and indicated that vacancies affect the spending on various levels.

13 207 First, when an employee is acting in a vacant position, the full funds allocated to that position is not spent and, second, when a new employee is appointed, it is done on the lowest salary bracket/notch allowed to ensure career and salary progression within a specific post level.
The Department indicated that most positions are being filled and the Department is monitoring progress made in this regard.

The Committee raised concern about the continuous underspending realised by the Department over several years.

The Committee indicated that underspending are robbing the intended beneficiaries of resources that were aimed at assisting them in the fight against crime and realising the goals of government.
The Department acknowledge the challenges experienced with underspending over the past years, but indicated that the underspending recorded in 2021/22 was mainly on goods and services and the procurement of capital assets that could not be procured due to the delay in the re-location of the Department to new office accommodation.

The Department indicated that an application was made to National Treasury, but that it was not approved because the amount on goods and services exceeded the approved threshold.
The Committee raised concern about the underspending in Programme 3: Legislation and Policy Development, because the Programme is one of the main service delivery programmes of the Department.

The Committee questioned the alignment between expenditure and achievement in that the Programme recorded underspending, but achieved 100% of its predetermined performance indicators in 2021/22.
The Department indicated that the spending was significantly affected by vacancies in the Programme and assured the Committee that the appointments are being prioritised.

The Committee raised concern about the non-functioning of CPFs and how these challenges will be addressed.
Further concerns were raised about the trust of communities in the Police and willingness from communities to assist the police in fighting crime in a constructive manner and not to be construed as infiltration to leak information to criminal elements.

The Department indicated that they, together with Provincial Secretariats, are continuously evaluating the functionality of CPFs and that where deficiencies are identified, interventions through training is made on a continuous basis.
The Department indicated that efforts are made to ensure that serving members of CPFs are willing to assist the police in the fight against crime.

7.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS Note: Recommendations must adhere to the SMART principle in being specific, measurable, achievable, relevant and time-bound.

This enables the Committee to track progress and identify missed milestones.

7.1.
7.1.

Recommendations on the forward use of resources The Committee recommends the following: 1) The Committee recommends that the Department should guard against future underspending and develop an action plan to address the factors leading thereto, especially the timeous filling of vacant posts.

7.2.
7.2.

Recommendations on service delivery performance The Committee recommends the following: 14 208 1) The Committee recommends that the Department should focus its attention on the finalisation of the amendments to the SAPS and IPID Acts and encourages the Minister to submit the daft amendment bills to Parliament as soon as possible.

2) The Committee recommends that greater attention should be given to the monitoring of the implementation of disciplinary recommendations from IPID by the SAPS.
3) The Committee recommends that the funding model for CPFs should be finanlised by no later than February 2023.

7.3.

Summary of reporting requests The Committee did not request the Department to submit any further information.

8.

CONCLUSION The Committee expressed its appreciation to the Minister of Police, Deputy Minister of Police, Acting Secretary for Police Service and the staff of the Civilian Secretariat for Police Service for the services during the 2021/22 financial year.
The Committee encouraged the Department to continue the performance on indicators, especially in the audit outcomes in achieving another clear audit opinion from the AG in future years.

Report to be considered.

15 209 8.

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE (IPID) PERFORMANCE FOR THE 2021/2022 FINANCIAL YEAR DATED 19 OCTOBER 2022.
The Portfolio Committee on Police, having considered the Annual Report and financial information of the Independent Police Investigative Directorate (IPID) for the 2021/22 financial year on 14 October 2022, reports as follows: 1.

INTRODUCTION In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.
9 of 2009, the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations Reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations to the Minister of Finance to amend the budget of a National Department.
The Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendation report as: 1) Assess service delivery performance of departments given available resources; 2) Evaluate the effective and efficient use and forward allocation of resources (value for money in services delivered); and 3) May include recommendations on the forward use of resources.
The BRRR forms a source documents for the Standing/Select Committees on Appropriations/Finance when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS).

BRRRs must be submitted for tabling in the National Assembly after the adoption of the Appropriation Bill and prior to the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS), which is scheduled for 26 October 2022.
Mandate of the Committee The mandate of the Committee therefore is to fulfil its constitutional function to: • • Pass legislation; Scrutinise and oversee executive action and the organs of state including the South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA); Facilitate public participation and involvement in the legislative and other processes; and • • Engage, participate and oversee international treaties and protocols.
This report is structured as follows: • Section 1: Mandate of the Committee.

This sections sets out the mandate of the Committee, the purpose of this report (Budgetary Review and Recommendation Report) and the process to develop this report.

• Section 2: Overview of key policy focus areas.

This section includes the policy determinations of the National Development Plan (NDP), Medium Term Strategic Framework (MTSF), the legislative mandate and key policies of the IPID.
1 210 • Section 3: Report of the AG.

This section provides a summary of the report of the Auditor General of South Africa.

• Section 4: Financial overview.

This section provides an overview of the financial statements of the Department for 2021/22 financial year.

• Section 5: Performance overview.

This section provides an overview of Departmental performance on predetermined key performance indicators and targets during the 2021/22 financial year.

• Section 6: Committee observations.


This section provides a summary of observations made by Members of the Committee during the 2021/22 IPID Budget hearing.

• Section 7: Committee recommendations.

This section provides the recommendations made by the Committee.

• Section 8: Conclusion.

This section provides a conclusion of the report.

2.

OVERVIEW OF KEY FOCUS AREAS 2.1.


The National Development Plan (NDP) The National Development Plan sets out the policy for policing and the country’s development agenda until 2030.

Amongst the key themes for policing, the NDP is clear on the type of policing changes that are needed for policing to be effective and professional.
The NDP lists five priorities for policing in its Vision 2030 scenario: 1) Strengthen the Criminal Justice System 2) Make the Police Service Professional 3) Demilitarise the Police 4) Build Safety Using an Integrated Approach 5) Increase Community Participation in Safety Strengthening the criminal justice system is an imperative requirement for the public to have confidence in the police and ensure greater safety and it speaks to the Medium Term Strategic Framework (MTSF) Outcome 3: “All people are and feel safe.” Given that 2020 was the start of the MTSF for 2020-2024, the performance and delivery of the target outcomes have been adjusted.
The CJS must provide swift, equitable and fair justice in criminal matters and effectively deter crime on a sustainable basis is also closely linked to the NDP and forms one of the five focus areas of the NDP.

2.2.

Medium Term Strategic Framework (2019-2024) The MTSF (2019-2024) is the implementation and monitoring framework for the NDP and is premised on three foundational pillars: a strong and inclusive economy, capable South Africans and a capable developmental state.
The MTSF proposes that the focus should be on implementation through getting all three spheres of government to work collaboratively.

A district development model will be implemented to coordinate implementation at local level.

The new model bridges the gap between the three spheres of government to ensure better coordination, coherence and integration of government planning and interventions.
There are seven priorities laid out in the MTSF as follows: • Priority 1: Capable, Ethical and Developmental State • Priority 2: Economic Transformation and Job Creation 2 211 • Priority 3: Education, Skills and Health • Priority 4: Consolidating the Social Wage through Reliable and Quality Basic Services • Priority 5: Spatial Integration, Human Settlements and Local Government • Priority 6: Social Cohesion and Safer Communities • Priority 7: A Better Africa and World 2.3.
Legislation and key policies The IPID Act, 2011 (Act No.

1 of 2011) (“the Act”) came into operation on 01 April 2012 to give effect to section 206(6) of the Constitution, which makes provision for the establishment of an independent police complaints body.
The objectives of the IPID Act are to: • Align provincial and national strategic objectives to enhance the functioning of the Directorate; • Provide for independent and impartial investigation of identified criminal offences allegedly committed by members of the SAPS and the Municipal Police Services; • Make disciplinary recommendations to the SAPS resulting from investigations conducted by the Directorate; • Provide for close cooperation between the Directorate and the Secretariat; and • Enhance accountability and transparency of the SAPS and the Municipal Police Services in accordance with the principles of the Constitution.
The IPID Act provided the Directorate with an extended mandate, which focuses on serious crimes committed by members of the SAPS and the MPS.

It further obliges the SAPS and the MPS to report on matters for investigation by the IPID and the status of implementation of disciplinary recommendations made by the IPID upon the completion of investigations.
In terms of section 28(1) of the Act, the Directorate must investigate: a) Any deaths in police custody; b) Deaths as a result of police actions; c) Complaints relating to the discharge of an official firearm by any police officer; d) Rape by a police officer, whether the police officer is on or off duty; e) Rape of any person in police custody; f) Any complaint of torture or assault against a police officer in the execution of his or her duties; g) Corruption matters within the police initiated by the Executive Director, or after a complaint from a member of the public or referred to the Directorate by the Minister, a MEC or the Secretary for the Police Service; and h) Any other matter referred to the IPID because of a decision by the Executive Director or if so requested by the Minister, an MEC or the Secretary for the Police Service as the case may be.
Section 28 (2) further provides that the Directorate may investigate matters relating to systemic corruption involving the police.
The Directorate had developed various new strategies for implementation during the 2021/22 financial year (and over the medium-term), including: • GBVF Strategy: The objective of the GBVF Strategy is to broaden access to justice for victims and survivors of violence; change social norms and behaviour through awareness raising and prevention campaigns; strengthen and promote accountability; and possibly create more economic opportunities for women who are vulnerable to abuse due to poverty.
3 212 • Communications and Stakeholder Management Strategy: The objective of the Strategy is to strengthen relations with various critical stakeholders; educate the public on the Department’s mandate; ensure marketing of the Department’s mandate; manage perceptions about IPID; restore public trust and confidence on IPID’s services and reassure the Department’s commitment to promote respect for the rule of law and human dignity.
• Youth Development Strategy: The Strategy aims to provide unemployed graduates and students with necessary workplace experience and skills that would contribute positively to their employment opportunities; create a pool of appropriately skilled and experienced prospective employees; create a platform for transfer of knowledge and skills to young people; and contribute towards the national agenda of youth development and creation of work opportunities to alleviate poverty.
• Access and Rural Awareness Strategy: The aim of the Strategy is to establish and strengthen relations with rural communities; create awareness on the IPID’s legislative mandate; and ensure active participation in the planning and the implementation of initiatives aimed at creating accessibility of IPID services.
According to the Directorate, the implementation of the above-mentioned strategies will amongst others ensure that attention is given to alleged police brutality, rape, torture, assaults, corruption as well as GBVF.

3.

REPORT OF THE AUDITOR –GENERAL OF SOUTH AFRICA (AGSA) The IPID received an unqualified audit opinion with a material non-compliance identified relating to the procurement of goods and services for designated sector.
The requirement relating to the stipulation of the minimum threshold on the invitation of bids was not implemented in all (100%) local production and content procurement.

The AG made no material finding in the usefulness and reliability of the reported performance information for the scoped Programme 2: Investigation and Information Management.
In terms of internal control deficiencies, the AG found that Management did not have adequate communication of Supply Chain Management (SCM) legislation relating to local content and production.

Furthermore, there was a lack of appropriate oversight due to key vacancies within the SCM division.

4.

FINANCIAL OVERVIEW 4.1.


Overall expenditure The IPID had a Final Appropriation of R353.7 million in 2021/22, of which R347.9 million was spent at year-end, which is 98.3% of the Final Appropriation (underspent with R5.8 million).

The main contributing factor for the recorded underspending was the high rate of vacancies experienced since the beginning of the financial year due to the delays in the approval of organisational structural changes.
Table 1: Appropriation statement 2021/22 4 213 Programme R’000 Administration Adjusted Appropriation Virement Final Actual appropriation Expenditure Variance % Spent 102 370 (2 740) 99 630 94 664 4 966 95.0% Investigation Information Management Legal and Investigation Advisory Services Compliance Monitoring and Stakeholder Management 231 334 3 693 235 027 235 027 - 100.0% 6 465 (31) 6 434 6 315 119 98.2% 13 609 (922) 12 687 11 902 785 93.8% Total 353 778 - 353 778 347 908 5 870 98.3% Source: 2021/22 IPID Annual Report 4.2.
Expenditure per programme Administration Programme: The Programme had actual expenditure of R94.6 million against the Final Appropriation of R99.6 million, which translated to 95.02% at the end of March 2022, which is a deviation of 4.98% (or R4.9 million).

This resulted mainly due to underspending under Compensation of employees.
Programme 2: Investigation and Information Management: The Programme had actual expenditure of R235.0 million against the Final Appropriation of R 235.0 million which translates to 100.00% at the end of March 2022.

Compensation of employees registered underspending due to the delays in filling some of the vacant positions.
Programme 3: Legal and Investigation Advisory Services: The Programme had actual expenditure of R6.3 million against a Final Appropriation of R6,4 million, which translates to 98.15% expenditure at the end of March 2022.

The actual expenditure resulted in a deviation of 1.85% (or R119 000).

Underspending was mainly under Compensation of employees following the resignation of the Head of the Programme towards the end of the 2021/22 financial year.
Programme 4: Compliance Monitoring and Stakeholder Management: The Programme had actual expenditure of R11.9 million against a Final Appropriation of R12.6 million, which resulted in 93.81% expenditure at the end of March 2022.

This is a deviation of 6.19% or R785 000.00.

The underspending was primarily due to delays in filling two vacant positions, of which one was only filled near the end of the fiscal year.

4.3.
4.3.

Irregular expenditure The Department incurred irregular expenditure amounting to R94 000.00 during the 2021/22 financial year.

However, the Department had a significant historic amount of R66.7 million brought over from previous financial years.

This amount related to the lease contract for the Head Office Building (City Forum).

The Department had a closing balance of R66.8 million in irregular expenditure at year end.

4.4.
4.4.

Unauthorised expenditure The Department did not incur any unauthorised expenditure in the 2021/22 (same as the two previous financial year).

However, the Department has historic unauthorised expenditure of R891 000.00 related to previous financial years (2008/09 and 2005/06) that is awaiting authorisation.

5 214 4.5.

Fruitless and wasteful expenditure During the year under review, the IPID incurred R60 000.00 in fruitless and wasteful expenditure, of which no funds were recovered.
The Department has historic fruitless and wasteful expenditure of R129 000.00 from previous financial years.

At year-end, the IPID had a closing balance of R295 000.00.

4.6.

Claims against the Department In 2017/18, the Department had a contingent liability of R87.9 million allowed for civil claims against the Department.

During the 2018/19 financial year, the Department incurred liabilities of R9.250 million and paid R41.018 million in liabilities.
This resulted in a reduction in the contingent liability to R56.200 million at year-end.

The Department further reduced its contingent liability to R49.8 million in 2019/20, which increased significantly to R84.9 million in 2020/21 (with claims amounting to R35.6 million incurred in 2020/21).

During 2021/22, new claims to the amount of R26.3 million was registered.

At year-end, the IPID had 41 claims against it and a closing balance of R110.5 million in claims.

5.

PERFORMANCE OVERVIEW 5.1.


Overall performance Overall, the performance of the Department improved during the 2021/22 financial year achieving 93.75% of its performance targets compared to 73% overall achievement in the previous financial year.
Both the Compliance and Stakeholder Management, and Legal and Investigation Advisory Services Programmes achieved 100% of their performance targets The performance of the Administration, and Investigation and Information Management Programmes both improved significantly compared to the previous financial year.

It should be noted that, of the 30 targets achieved, performance on 28 of these targets was exceeded.
Although achievements must be commended, exceeding the targets of 93% of performance indicators might point to targets being set too low and must be increased.
PERFORMANCE ON TARGETS: 2020/21 vs. 2021/22 TOTAL Compliance Monitoring and Stakeholder Management Legal and Investigation Advisory Services Investigation and Information Management Administration 20% 94% 73% 100% 100% 100% 100% 69% 92% 86% 0% 20% 40% 60% 80% 100% 120% 2021/22 2020/21 6 215 The AG made no material findings on the usefulness and reliability on the performance information contained in the 2021/22 Annual Report.

5.2.
5.2.

Programme 1: Administration Administration Programme Achieved 6 from 7 performance targets 85.7% Achievement rate The Administration Programme achieved six from seven performance indicator targets, which represents 85.7% of targets achieved, which a significant improvement in performance from the performance recorded in the previous financial year in which 20% of targets were achieved in the Administration Programme.
Table 2: Achievement on Performance targets by the Administration Programme Percentage implementation of the Information and Communication Technology (ICT) Strategy • Target: 70% • Achievement: 78% (29/37) • Deviation: +8% Percentage implementation of the risk mitigation strategies • Target: 60% • Achievement: 63% (15) • Deviation: +3% Percentage compliance of SMS financial interests submitted through e-disclosure per year • Target: 100% • Achievement: 100% (31/31) • Deviation: N/A Percentage vacancy rate per year • Target: <10% • Achievement: 8.69% (34/391) • Deviation: 1.31% Percentage implementation of annual Internal Audit Plan per year • Target: 90% • Achievement: 91% (30/33) • Deviation: +1% Percentage implementation of Gender-Based Violence and Femicide Strategy • Target: 70% • Achievement: 82% (14/17) • Deviation: +12% Percentage implementation of Youth Development Strategy • Target: 80% • Achievement: 42% (13/33) • Deviation: -38% Note: The commencement of the internship programme was delayed due to high volume of applications that were received and the lengthy selection process was also exacerbated by the COVID-19 lockdown restrictions.
As a result of some of the activities were dependent on the 7 216 commencement of the programme.

The poor performance on the implementation of the ICT Strategy was due to budget cuts and projects that could not be implemented were deferred to the 2021/22 financial year.

Various projects were also dependent on the relocation of the head office building.

The Department of Public Works only handed over the new building on 26 March 2021.

5.3.
5.3.

Programme 2: Investigation and Information Management Investigation and Information Management Programme Achieved 12 from 13 performance targets 92.3% Achievement rate The Programme achieved 12 from 13 performance targets in the 2021/22 financial year, which represents an achievement rate of 92.3%.

This is an improvement compared to the achievement rate of 69% achieved in the previous financial year.
Table 2: Achievements on targets: Investigation and Information Management Programme Number of investigations of Number of investigations of discharge of an official death as a result of police firearm by a police officer that action that are decision ready are decision ready per year per year • Target: 370 • Target: 220 • Achievement: 507 • Achievement: 286 • Deviation: +137 • Deviation: +66 Number of investigations of deaths in police custody cases that are decision ready per year • Target: 120 • Achievement: 205 • Deviation: +85 Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, regular engagement with the stakeholders on outstanding Technical Reports, weekly monitoring of catch-up plans and re-prioritisation of resources.
Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, regular engagement with the SAPS on outstanding Technical Reports, weekly monitoring of catch-up plans and re-prioritisation of resources.

Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, regular engagement with stakeholders on outstanding Technical Reports, weekly monitoring of catch-up plans and re- prioritisation of resources.
Number of investigations of rape by police officer that are decision ready per year • Target: 70 • Achievement: 86 • Deviation: +16 Number of investigations of rape while in police custody that are decision ready per year • Target: 6 • Achievement: 3 • Deviation: -3 Number of investigations of torture that are decision ready per year • Target: 80 • Achievement: 139 • Deviation: +59 Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, regular Reason for deviation: Target not achieved due to low volume of intake.
There were Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, weekly 8 217 engagement with stakeholders on outstanding Technical Reports, weekly monitoring of catch-up plans and re- prioritisation of resources.

only three (03) active cases; one (1) backlog and (02) new cases.

All three (03) active cases were completed.

monitoring of catch-up plans and re-prioritisation of resources.
Number of investigations of assault that are decision ready per year • Target: 2 000 • Achievement: 2 569 • Deviation: +569 Number of investigations of corruption that are decision ready per year • Target: 70 • Achievement: 90 • Deviation: +20 Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy, weekly monitoring of catch-up plans and re-prioritisation of resources.


Number of investigations of other criminal and misconduct matters referred to in section 28 (1)(h) of IPID Act that are decision ready per year • Target: 10 • Achievement: 99 • Deviation: +89 Reason for deviation: Target is exceeded due to prioritisation of GBV related cases.
Number of approved systemic corruption cases that are decision ready per year • Target: 2 • Achievement: 3 • Deviation: +1 Number of investigations of offences referred to in section 33 of the IPID Act that are decision ready per year • Target: 5 • Achievement: 28 • Deviation: +23 Reason for deviation: Target is exceeded due to implementation of backlog reduction strategy and reprioritisation of resources.
Percentage of dockets referred to the National Prosecuting Authority within 30 days of being signed off per year • Target:90% • Achievement: 92% (2 237/2 427) • Deviation: +2% Reason for deviation: Target exceeded due to effective monitoring processed Percentage of recommendation reports referred to the South African Police Service and Municipal Police Services within 30 days of being signed off per year • Target: 90% • Achievement: 90% (2 308/2 556) • Deviation: N/A 5.4.
Case intake: 2021/22 9 218 During 2021/22, 5 295 cases were reported to the IPID, which is a decrease of 14% compared to the previous financial year.

Of the total case intake, 5 234 cases involved the SAPS, 59 cases involved the MPS and two cases involved civilians.
The figure below shows that while most categories recorded a decrease, four showed an increase, including death in police custody (+3%), death as a result of police action (+16%), rape by a police officer (+24%), and other criminal matters and misconduct (+313%).
Table 3: Changes in annual intake of cases per category Annual intake 2020/21 2021/22 Deaths in police custody Deaths as a result of police action Complaint of the discharge of official firearm(s) Rape by police officer Rape in police custody Torture Assault Corruption Other criminal matter and misconduct Systemic corruption Non-compliance with Section 29 of IPID Act Total 217 353 830 80 15 256 4 228 66 30 - 47 6 122 223 410 744 99 2 192 3 407 59 124 - 35 5 295 Source: IPID 2021/22 Annual Report Percentage changes + 3% + 16% - 10% + 24% - 87% - 25% - 19% - 11% + 313% - - 26% - 14% As in previous financial years, assaults remain the predominant category of cases (3 407/5 295), despite the number of cases decreasing by 19%.
The highest number of cases was in the Western Cape with 785, followed by Gauteng with 550 incidents and Free State with 405 incidents.

In 2021/22, there were two cases of rape in police custody, which is a decrease of 87% (15 cases were reported in previous financial year).

The 2021/22 performance target to investigate thee cases of rape in police custody could not be achieved, because only two cases were reported.
Cases of death in police custody showed a decrease of 3% in 2021/22 compared to the previous financial year.

While some provinces recorded a decrease, the following provinces recorded increases: Free State (+32%), Limpopo (+32%), Mpumalanga (+44%), North West (+67%) and the Northern Cape (+250%).

Most deaths in police custody was a result of natural causes with 71 cases, followed by suicide hanging with 62 cases and injuries sustained prior to custody (Vigilantism) with 53 cases.
In terms of deaths as a result of police action, 410 cases were recorded, which is an increase of 16% compared to the previous financial year.

Only the Free State and Western Cape Provinces recorded a decrease.

The North West Province recorded a significant increase of 267%.

Some cases involved more than one victim (deaths), as such, the 410 cases involved 466 deceased persons.
Of the 410 incidents, 141 involved the death of a suspect during the course of a crime, and 21 incidents involved the death of a suspect during the course of arrest.

In terms of the latter, eight suspects died as a result of assault, and 124 were shot with a service firearm.

It is concerning to note that 21 suspects were killed during the course of an investigation, of which two died due to suffocation.
During 2021/22, 21 people were killed during crowd management incidents, which is a significant increase compared to the 11 persons fatally shot by police during crowd management incidents in the previous financial year.

10 219 The number of cases relating to other criminal matters and misconduct (not stipulated in the IPID Act) increased from 30 cases to 124 cases in 2021/22 compared to the previous financial year, which is an increase of 313%.
The majority of these cases included off duty assault (49 cases), followed by defeating the ends of justice (18 cases) and harassment (16 cases).

5.5.

Criminal referrals to the NPA The IPID made 2 427 criminal referrals to the National Prosecuting Authority (NPA) for decision, of which 1 401 of referrals are still waiting for response, prosecution was declined for 964 cases, 48 cases were approved for prosecution and 14 cases were withdrawn.
At the end of March 2022, the IPID was awaiting response from the NPA on 57.7% of cases referred for criminal prosecution.

The NPA took a decision on 1 026, of which they declined to prosecute in 94% of cases.

Only 4.6% of cases on which the NPA took a decision were to prosecute.

5.6.
5.6.

Disciplinary reconditions to SAPS and MPS The IPID made 2 514 recommendations to SAPS during the period under review, which comprised of 756 recommendations where the IPID recommended to SAPS to discipline its member(s) and 1 758 recommendations where the IPID recommended no disciplinary action to SAPS member(s).
Thus, in 70% of cases, no action was recommended to be taken against SAPS members and in 30% of cases, disciplinary actions were recommended Of the total referrals (576), 477 disciplinary cases were finalised of which 190 led to a guilty verdict, 99 led to a not-guilty verdict, in 155 cases no steps were taken and 33 cases were withdrawn.
The IPID made 42 recommendations to MPS during the period under review, which comprises of 16 recommendations where the IPID recommended to MPS to discipline its member(s) and 26 recommended no disciplinary action to MPS member(s).

The majority of negative recommendations were to the Tshwane Metro Police Department (19/42), followed by the Johannesburg Metro Police Department (13/42) and the Ekurhuleni Metro Police Department (5/42).
Of these recommendations, none has been finalised or initiated and the IPID is awaiting feedback on 16 cases/recommendations.

During 2021/22, 239 disciplinary convictions were secured on 772 cases referred to the SAPS and MPS for disciplinary action (30.9%).
Of the 239 disciplinary convictions (involving 311 police offices), the majority led to a written warning (77 or 32.2%), followed by dismissal (53 or 22.1%), final written warning (46 or 19.2%), corrective counselling (23 or 9.6%), verbal warning (21 or 8.7%) and salary suspension (19 or 7.9%).

The finalisation of cases often run over financial year, as such it is not completely accurate to measure disciplinary convictions against the case intake of a single financial year.
But as a crude calculation, it can be indicated that of the case intake of 5 295 in 2021/22, a total of 239 disciplinary convictions were secured (4.5%), which led to 53 dismissals (1%).

IPID investigates serious cases of alleged misconduct and criminality as per their mandate.

It is worrying that only about 1% of such cases has the possibility of leading to a dismissal from service.

5.7.
5.7.

Total workload of the IPID 11 220 At the end of the 2021/22 financial year, the IPID had an active case load of 16 878, which is an increase compared to the active caseload of the previous financial year (15 317) and 23 187 post decision ready cases (also referred to as post decision monitoring cases1), thus at year-end the IPID had a total case load of 40 065 cases, which is an increase compare the previous year’s total workload of 38 501 cases.
This is a significant backlog, which is increasing yearly and should be of significant concern to the Committee.

The highest workload based on category are assault cases (24 251), followed by complaint of discharge of official firearm (5 231) and death as a result of police action (3 517).

The highest workload based on provinces were located in Gauteng (9 706), followed by Western Cape (8 168) and KwaZulu-Natal (5 868).

5.8.
5.8.

Programme 3: Legal and Investigation Advisory Services Legal and Investigation Advisory Services Achieved 4 from 4 performance targets 100% Achievement rate At the end of the 2021/22 financial year, the Legal and Investigation Advisory Services Programme achieved 4 from 4 performance targets, giving the Programme an achievement rate of 100%.

The Programme also achieved 100% of its targets in the previous financial year.
Percentage of legal advice provided to investigators within 2 working days of receipt per year Percentage of legal advice provided to the Department within 30 working days of receipt per year • Target: 95% • Achievement: 100% (12/12) • Deviation: +5% • Target: 70% • Achievement: 100% (12/12) • Deviation: +30% Reasons for deviation: Target is exceeded due to effective monitoring Processes Reasons for deviation: Target is exceeded due to effective monitoring Processes Percentage of litigation matters referred with instructions to the state attorney within 10 working days of receipt per year Percentage of contracts and service level agreements finalised within 30 working days of request per year • Target: 100% • Achievement: 100% (6/6) • Deviation: N/A • Target: 90% • Achievement: 91% (21/23) • Deviation: +1% Reasons for deviation: N/A Reasons for deviation: N/A 5.9.
Programme 4: Compliance Monitoring and Stakeholder Management 1 Post decision monitoring refers to the continuous evaluation and monitoring of completed cases of which feedback and the outcome is still outstanding which would allow the closure of a case.

Cases falling under this status should be reviewed every 60 days for feedback from the stakeholder.
12 221 Compliance Monitoring and Stakeholder Management Programme Achieved 8 from 8 performance targets 100% Achievement rate At the end of the 2021/22 financial year, the Compliance Monitoring and Stakeholder Management Programme achieved 8 from 8 performance targets giving the Programme an achievement rate of 100%.

The Programme also achieved 100% of its targets in the previous financial year.
Number of formal engagements held with key stakeholders per year • Target: 166 • Achievement: 185 • Deviation: +19 Reasons for deviation: Target is exceeded due to integration of stakeholder management into SMS deployment programme.
Percentage of recommendations referred to the SAPS and MPS that are analysed per year • Target: 80% • Achievement: 99% (2 553)) • Deviation: +19% Number of media programmes held per year • Target: 4 • Achievement: 7 • Deviation: +3 Reasons for deviation: Target is exceeded due to increased media interest on IPID cases Percentage of criminal referrals forwarded to the NPA that are analysed per year • Target: 80% • Achievement: 100% (2 427) • Deviation: +20% Reasons for deviation: Target is exceeded due to regular performance monitoring Reasons for deviation: Target is exceeded due to regular performance monitoring Percentage of responses from the SAPS and MPS that are analysed within 30 days of receipt per year • Target: 60% • Achievement: 97% (594) • Deviation: +37% Reasons for deviation: Target is exceeded due to regular performance monitoring Percentage of responses from the NPA that are analysed within 30 days of receipt per year • Target: 60% • Achievement: 98% (1 290) • Deviation: +37% Reasons for deviation: Target is exceeded due to regular performance monitoring Number of case docket inspections conducted per year Percentage implementation of Access and Awareness Rural Strategy per year • Target: 5 • Achievement: 7 • Deviation: +2 Reasons for deviation: Target is exceeded due to collaboration with other components to strengthen internal controls • Target: 60% • Achievement: 60% • Deviation: N/A Reasons for deviation: N/A 13 222 5.10.
Human Resource Management As at 31 March 2022, the Department had a total of 357 filled positions, which is an increase compared to 346 filled positions in 2020/21.

Personnel expenditure accounted for 61% of the Department’s total expenditure in 2021/22.

At the end of March 2022, the Department has a vacancy rate of 8.5%, which is below the accepted standard of 10% in the Public Service.

The Department had a turnover rate of 6.5% in 2021/22 (23 employees left the employment of the Department).
The highest contributing factor was resignations (13), followed by the expiry of contract (2) and discharge due to ill-health (2).

Disciplinary action was taken against 20 employees during 2021/22.

A total of six misconduct and disciplinary hearings were finalised at the end of March 2022, of which the sanctions included three final written warnings, two written warnings and one corrective counselling.

The Department reported no injuries on duty during 2021/22.

6.
6.

COMMITTEE OBSERVATIONS The Committee made the following observations: 1) The Committee requested clarity on the framework for screening and prioritisation of cases that was developed in collaboration with the African Policing Civilian Oversight Forum (APCOF).

The Department indicated that the framework is based on the seriousness, impact and solvability of cases.

The Department indicated that the best resources are allocated to these cases.
The Department further noted that a national instruction was issued to Provinces to explain the framework to identify priority cases and that several quality assurers were appointed to monitor the quality of investigations.

2) The Committee requested the Department to provide details on the nature of misconduct cases and to identify the ranks of police members investigated for misconduct (and specifically dismissed) as well as the leading provinces in these cases.
The Committee further requested that the Department should indicate what are the leading causes for misconduct in these identified provinces and indicate what interventions are made to reduce the number of misconduct cases.

The Department indicated that the ranks of officers investigated for misconduct are mainly operational ranks such as Constables and Warrant Officers and that sporadic cases are reported involving higher ranking officers.
The Department further indicated that they, in collaboration with the Human Rights Commission, had presented over 86 special lectures at police stations throughout the 2021/22 financial year to further educate police members on Human Rights as enshrined in the Constitution.

These station lectures also focus on educating police members on the IPIDs mandate and implications of the IPID Act.
3) The Committee welcomed the unqualified audit opinion of IPID but expressed concern about the performance of the Department in general.

Specific concern was expressed about the significant backlog in cases and the Committee requested the Department to indicate the manner in which the backlog will be addressed and resolved.

The Department indicated that the majority of backlog cases are those classified as post-decision ready cases of which investigations have been finalised and ready to be closed.
The Department further indicated that the majority of backlog-cases are less serious cases of assault common.

In order to reduce the backlog, the Department has appointed and trained interns to close cases identified as ready for closure.

Assistance will be specifically provided to provincial offices.
14 223 4) The Committee expressed concerns about the turnaround time on decisions by the NPA on criminal recommendations referred for prosecution as well as the low conviction rate on criminal recommendations.

The Department acknowledged that convictions pose a challenge and that continuous engagements are done with the NPA and other stakeholders to address challenges.

The Departments is also continuously analysing dockets that are declined for prosecution to identify areas for improvement.
The Department further indicated that they are using all resources at their disposal to improve performance and to make an impact felt by both the public as well as police members.

In closing, the Department remarked that the COVID-19 lockdown had a significant impact on the investigation and prosecution of cases.

5) The Committee requested the Department to provide more detail on the incidences of rape in police custody and rape by police officers.
The Committee highlighted media reports stating that police officer committing crime of rape only get warnings which is a slap on the wrist for such serious crimes.

The Committee further requested the Department to indicate the places where rapes were committed by police officers.

The Department indicated that rape in police custody is classified as being committed by civilians (not police members) and rape by a police office is then classified as such.
The Department indicated that from the total of 99 cases involving rape by a police officer, 49 rapes were committed by police officers that were on duty and 50 rapes were committed by police officers that were off-duty.

Rape cases are identified as priority cases in terms of the framework to prioritise and screen cases.

The Committee raised significant concern about police officers committing sexual offences, such as rape, when the police is expected, and mandated.
to combat gender-based violence and femicide, specifically sexual offences (including rape).

6) The Committee raised concern about the lack of resourcing of the Department, both in terms of financial resources and human resources.

The Department acknowledged that their resources are limited and that this has a negative impact on fulfilling its mandate.
However, the Department indicated that various strategies have been put in place to expand the reach of the IPID through collaborations with other Government Departments.

The Department indicated that they are sharing office space with the National Youth Development Agency (NYDA) and Provincial Departments of Community Safety which enabled them to increase their geographic footprint significantly.
Further engagement and MOUs were made with the Safety and Security Sector Education and Training Authority (SASSETA) to provide training and with the NPA to augment the capacity of the IPID.

7) The Committee raised concerns about the principal legislation of the Department in that the IPID Act, 2011 does not capacitate the IPID fully to fulfil its mandate and make a meaning impact on improving the professionalism of the police service.
The Department indicated that the biggest challenge is faced with disciplinary recommendations referred to the SAPS for disciplinary steps not being implemented.

The Department suggested that they should form part of the SAPS disciplinary hearing on cases investigated by the IPID.

This will allow greater transparency in the disciplinary processes of the SAPS and will ensure greater adherence to recommendations made by the IPID.
The Department stated that this challenge is specifically illustrated in cases where police members are found guilty criminally but exonerated in departmental disciplinary proceedings.

15 224 8) The Committee raised concern about the quality of investigation and noted that these might not be of high quality, or sufficient quality, to secure successful convictions.
The Committee indicated that before cases are referred to the NPA for criminal prosecution, there must be a strong prima facie case, in other word, sufficient evidence to establish wrongdoing unless disproved.

The Committee noted that the Directorate does not seem to achieve its core mandate as an institution to build public trust in the police, to ensure accountability and serve as a deterrent to other police officers not conducting themselves professionally and outside the ambit of the law.
9) The Committee raised concern about the quality of responses provided by the Department during the hearing and stated that the responses are wage and in futuristic terms.

The Committee indicated that it seems that most of the strategies intended to address performance concerns are yet to be implemented and questioned the reason for these not already implemented.

7.
7.

COMMITTEE RECOMMENDATIONS Note: Recommendations must adhere to the SMART principle in being specific, measurable, achievable, relevant and time-bound.

This enables the Committee to track progress and identify missed milestones.

7.1.
7.1.

Recommendations to National Treasury The Committee recommends the following: 1) The Committee recommends that National Treasury consider an increase to the IPIDs budget allocation for the 2022/23 financial year and that this should be taken into account during the budget adjustment period.

Fund should be specifically made available for the appointment of IPID Investigators to improve the ratio between police officers and IPID Investigators.

7.2.
7.2.

Recommendations on service delivery performance The Committee recommends the following: 1) The Committee recommends that the Department should increase consultations with the NPA to secure a higher conviction rate on criminal referrals.

2) The Committee recommends that the Department should improve the quality of investigations to ensure higher conviction rates in terms of criminal referrals to the NPA.
The Department should submit a report to the Committee by 20 November 2022 highlighting the main deficiencies highlighted during quality assurance checks on case dockets/investigations that were declined for prosecution.
3) The Committee recommends that the Minister and Deputy Ministers of Police must fast-track the submission of the Draft IPID Amendment Bill to Parliament before the end of the 2022 calendar year and further that the Bill must give the IPID a greater mandate to influence the disciplinary outcomes in cases which were investigated by the IPID.

7.3.
7.3.

Reporting requirements The Committee requests the following information to be submitted: 1) The Department should submit a report on misconduct cases reported and investigated during 2021/22 and should include, specifically, the ranks of police officers investigated, the leading 16 225 provinces and causative factors.

The report should further provide the outcome of these investigations and a provincial breakdown of cases.
2) The Department is requested to submit a high-level explanation of the framework adopted on the prioritisation and screening of cases.

As the framework will be finalised in November 2022, the requested report should be submitted by 02 December 2022.

8.

CONCLUSION The Committee expressed its appreciation to the Minister of Police, Deputy Minister of Police, Executive Director of IPID and the staff of IPID for their services and commitment during the 2021/22 financial year.
The Committee encouraged the Department to improve its performance during the 2022/23 financial year (and going forward) to have a greater impact on the improvement of the professionalism of the police services (SAPS and MPS) and building public trust that criminality and misconduct in the police services will be rooted out.

Report to be considered.

17 226 9.


Budget Review and Recommendation Report of the Portfolio Committee on Police on the Private Security Industry Regulatory Authority (PSIRA) performance for the 2021/22 financial year dated 19 October 2022.

The Portfolio Committee on Police, having considered the annual financial and service delivery performance of the Private Security Industry Regulatory Authority (PSIRA) for the 2021/22 financial year on 14 October 2022, reports as follows 1.
Introduction The Private Security Industry Regulatory Authority (PSIRA) was established in terms of Section 2 of the Private Security Industry Regulation Act, No.

56 of 2001.

The Authority is mandated to regulate the private security industry and to exercise effective control of security service providers in the public and national interest and the interest of the security industry itself.

The Portfolio Committee the PSIRA BRRR hearing on 14 October 2022.
The Portfolio Committee on Police, having considered the 2021/22 Annual Report of the Private Security Industry Regulatory Authority (PSIRA) reports as follows.
1.1 Mandate of the Committee The mandate of the Committee, therefore, is to fulfil its constitutional function to: • Pass legislation; Scrutinise and oversee executive action and the organs of state including the South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA); • Facilitate public participation and involvement in the legislative and other processes; and • Engage, participate and oversee international treaties and protocols.
1.2 Purpose of the Budget Review and Recommendation Report In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations on forward use of resources.
The BRRR is also a source document for the Committees on Appropriations when considering and making recommendations on the Medium Term.
The Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendation report as: • Providing an assessment of the department’s service delivery performance given available resources; • Providing an assessment of the effectiveness and efficiency of the departments use and forward allocation of available resources; and Including recommendations on the forward use of resources.
• This report is structured as follows: Section 1: Mandate of the Committee.

This sections sets out the mandate of the Committee, the purpose of this report (Budgetary Review and Recommendation Report) and the process to develop this report.

Section 2: Overview of the Private Security Industry 2021/22 1 227 Section 3: The section provides a summary of the AGSA Report for 2021/22 Section 4: Financial overview 2021/22.

The section provides an overview of the financial performance of the Authority.
Section 5: Performance against predetermined targets for 2021/22.

The section provides an analysis of the Authority’s performance against predetermined performance indicators and targets.

Section 6: Human Resources.

The section provides for an organisational development initiative.

Section 7: Role of Private Security in the July 2021 Unrest.

Section 8: Committee observations .


The section provides the key observations made by the Committee during engagements on the 2021/22 Annual Report of the Authority.

Section 9: Committee recommendations.

The section provides the recommendation made by the Committee.

Section 10: Conclusion.

This section provides a conclusion of the report.

2.

OVERVIEW OF THE PRIVATE SECURITY INDUSTRY 2021/22 In 2021/22, 121 094 security officers and 2 051 security businesses were registered.
There was a 5% increase in the number of registered active security officers and a 7% increase in the number of registered active security businesses in 2021/22 compared to the previous financial year.

At the end of March 2022, South Africa had 586 042 registered active security officers and 11 540 businesses.

According to the Authority, there has been a 20% increase in registered active security officers and 42% increase in the number of registered active security businesses over the last nine years.
In 2021/22, law enforcement investigations increased slightly by 0.6% compared to the previous financial year.

During the year under review, the Authority conducted 37 595 inspections on security service providers.

The number of improper conduct case dockets against non-compliant security service providers increased by 37.2%.

During 2021/22, 1 318 cases were finalised by the Authority’s Legal Services Division, which resulted mainly in the issuing of fines.
During 2021/22, 44 joint operations were conducted with South African Police Service, the Department of Employment and Labour, and the Department of Home Affairs.

These resulted in the arrest of 825 security personnel, of which 462 were unregistered security service providers, 198 were undocumented foreign nationals employed as security officers and 15 were as a result of non-compliance with the Firearms Control Act, 2000 (No.

60 of 2000).
60 of 2000).

In terms of key partnerships, the Authority entered into a partnership with International Association of Security and Investigative Regulators (IASIR) and ProtaTECH.

Further thereto, the Authority is engaging with the South African Aerospace, Maritime and Defence Export Council (SAAMDEC) to form a partnership in regulating the security services providers and the military equipment used in the private security industry.

3.
3.

REPORT OF THE AUDITOR GENERAL In 2020/21, PSIRA received its third consecutive clean audit.

Unfortunately, this could not be maintained and the Authority received a qualified audit in 2021/22.

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA.
Material misstatement of disclosure items identified by the auditors in the submitted financial statements was corrected, but the supporting records that could not be provided resulted in the financial statements receiving a qualified opinion.

2 228 The Office of the AG was unable to obtain sufficient appropriate audit evidence for principal liability due to the status of record keeping.
PSIRA did not vouch and reconcile invoices of the project as and when they were received from the service provider and the AG was unable to confirm the principal liability by alternative means.

Consequently, the AG was unable to determine whether any adjustments were necessary to principal liability stated at R23 454 516 in the financial statements.

Inadequate project monitoring which resulted in the expenditures incurred not being supported by adequate and complete documents.
Adequate reconciliations were also not performed against reliable documentation to monitor the expenditure incurred on the project.

The table below show the audit outcomes for PSIRA over the past 13 years (2009/10 to 2021/22).
Financial year 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Audit outcome Qualified Unqualified with material findings Unqualified with material findings Qualified Unqualified with material findings Unqualified with material findings Unqualified with material findings Unqualified with material findings Unqualified with material uncertainty relating to the entity’s ability to continue as a going concern.
Unqualified with no material misstatements and findings (Clean audit).

Unqualified with no material misstatements and findings (Clean audit).

Unqualified with no material misstatements and findings (Clean audit).

Qualified In 2021/22, the AG did not raise any material findings on the usefulness and reliability of the reported performance information for the selected material performance indicators.

4.
4.

STATEMENT OF FINANCIAL PERFORMANCE 2021/22 PSIRA’s financial sustainability increased in 2021/22 compared to the previous financial year.

At year- end, PSIRA closed with a surplus of R88.3 million, which is a significant improvement against the R33 million surplus recorded in the previous financial year.

According to the Authority, “the liquidity risk was mitigated mainly due to turnaround strategies implemented to improve revenue collection and cost containment measures.
The Authority’s current revenue model proved to have reached its lifespan as most Security Businesses billed are finding it difficult to pay the annual fees.

PSIRA in collaboration with National Treasury are in a process to review the Private Security Industry Levies Act to address the financial sustainability of the Authority and to replace the current outdated funding model.

The Levies Act will bring a balanced and equitable contribution of all service providers to the funding model.
Most of the smaller security companies were hard hit by the Covid-19 pandemic and lockdown restrictions which led to some losing their work and this had an impact on our revenue.

The table below provides a breakdown of the Authority’s financial performance in 2021/22 compared to the previous financial year.
3 229 Table 1: Statement of Financial Performance Financial year Revenue Total revenue from exchange transactions Revenue from non-exchange transactions Total Revenue Expenditure Surplus/ (Deficit) for the year Source: 2021/22 PSIRA Annual Report 2021/22 2020/21 379 568 755 28 147 231 407 715 986 (319 418 528) 88 297 458 288 259 392 29 354 507 317 613 899 (284 195 077) 33 418 822 During the year under review, the Authority’s total revenue increased from R317.6 million in the previous financial year to R407.7 million (+28%).
PSIRA’s expenditure increased from R284.4 million in 2020/21 to R319.4 million in 2021/22.

At the end of 2021/22, the debt impairment was R22.6 million which is a significant increase compared to the previous financial year in which debt impairment was R16.49 million.

PSIRA is a defendant in a number of legal actions.

It is not possible at this stage to determine the actual losses that PSIRA would suffer in the event that the court found against PSIRA.
Estimated liability amounts to R5 538 860 (R5.53 million) as at 31 March 2022, which is slight increase compared to the previous financial year (R5.

39 million).

The Authority did not incur irregular expenditure during the 2021/22 financial year.

This is the fifth consecutive year in which the Authority did not incur irregular expenditure and should be commended.

At the start of 2021/22, the Authority had an opening balance of R162 178.00 in fruitless and wasteful expenditure due to historic amounts.
In 2021/22, the Authority incurred no fruitless and wasteful expenditure.

During this period, R82 899.00 (of historic amount) was recovered and R67 265.00 was written off, which gave the Authority a closing balance of R13 450.00 at the end of March 2022.

5.
5.

PEFORMANCE AGAINST PREDETERMINED TARGETS FOR 2021/22 The Authority has achieved 82.7% of its predetermined performance indicator targets at the end of the 2021/22 financial year (24 targets achieved from 29), which is a decrease in performance compared to an 86% achievement rate in 2020/21.

Note: In 2020/21, the Authority split the Communication, Training and Registration Programme into two separate Programmes, namely Programme 3: Communication and Training and Programme 4: Registration.
The graph below shows a visual representation of performance between 2018 and 2022.

In 2019/20, the Authority recorded its best performance in five years.

4 230 Graph 1: Comparative performance between 2017/18 and 2021/22 TOTAL ACHIEVEMENT RATE OVER YEARS ( 2018 - 2022) 2021/22 2020/21 2019/20 2018/19 2017/18 83% 83% 86% 86% 96% 75% 80% 85% 90% 95% 100% The graph below illustrates PSIRA’s performance rate between 2018 and 2022 per programme.
The performance of the Administration programme increased over the past five years and has stabilised over the past two financial years.

The Law Enforcement Programme has, for the first time in five years, not achieved 100% of its predetermined targets in 2021/22.

The programme achieved six from seven targets.

In 2021/22, the Communication and Training programme achieved its second highest performance rate over the five-year period, and improved compared to the previous financial year.
The Registration programme was only established in 2020/21 and recorded lower performance in 2021/22 compared to the previous financial year.
Graph 2: Comparative performance between 2017/18 and 2021/22 per programme ( 2 0 1 8 - 2 0 2 2 ) % 1 9 % 1 9 % 6 8 % 5 7 % 5 7 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 6 8 % 0 0 1 % 6 8 % 8 8 % 9 7 % 4 7 P R O G R A M M E 1 : A D M I N I S T R A T I O N P R O G R A M M E 2 : L A W E N F O R C E M E N T P R O G R A M M E 3 : C O M M U N I C A T I O N A N D T R A I N I N G 2017/18 2018/19 2019/20 2020/21 2021/22 % 0 5 % 3 3 % 0 % 0 P R G R A M M E 4 : R E G I S T R A T I O N 5.1.
Administration Programme Purpose: Provide leadership, strategic management and administrative support to the Authority.

5 231 Measurable Objectives: The programme aims to ensure effective leadership, management and administrative support to the Authority through continuous refinement of organisational strategy and structure in line with appropriate legislation and best practice.
The Administration Programme achieved 10 out of 11 performance targets, which is an achievement rate of 91%, and the same as the previous financial year.

The target missed was on the full (100%) implementation of the approved Strategic Risk Mitigation Plan.

At the end of March 2022, 75% of the Plan was implemented.
According to the Authority, delays were primarily encountered in the risk actions dealing with the appointment of the service provider for the development of an online assessment platform because the bidder did not meet the minimum requirements.

The tender was re- advertised and was incorporated as an action in the 2022/2023 register.

This led to a target in Programme 3: Communication and Training being missed in 2021/22.

5.2.
5.2.

Law Enforcement Programme Purpose: Ensure that there are effective regulations in the security industry and enforcement of law and compliance to the regulations Measurable Objectives: The programme aims to ensure that Security Service Providers comply with the regulations by doing regular inspections for both security officers and security businesses and ensure that those who are complying with the regulations are charged and prosecuted.
The Law Enforcement Programme achieved 86% (six from a total of seven) of its predetermined performance targets at the end of the 2021/22 financial year.

It is the first time in five years in which the Programme did not achieve 100% of its targets.

The Programme planned to achieve 40% of registered active businesses completing industry compliance self-assessments.

At the end of March 2022, only 28% completion was achieved, thus missing the target by 12%.
According to the Authority, the negative deviation was due to a poor response from the industry in completing the industry compliance self-assessments.

In addition, there were also many duplications detected.

In 2022/23, this target is set at 50%.

5.3.

Communication and Training Programme Purpose: Provide effective stakeholder engagement.

Ensure that training standards are adhered to and the registration process is done in accordance with the PSIR Act.
Measurable Objectives: Ensure effective and meaningful stakeholder communication.

Ensure that all training institutions are aligned to the required standard of training.

Ensure that the registration process is effective and authentic.

Continuous research to support core business initiatives and policy development.
The Communication and Training Programme achieved seven out of eight performance targets for 2021/22, which is an 88% achievement rate, and an increase compared to an 86% achievement rate of the previous financial year.

The Authority failed to develop three new accredited courses during the 2020/21 financial year.

The courses identified for development included: 1) Assets in transit; 2) Special events, and 3) Armed reaction officers.
According to the Authority, there was no interest shown in the request for quotations in the first half of the financial year to develop the identified courses.

In 2020/21, a concept document on online external assessment was approved and the initial target set for 2021/22, was to achieve 20% of learners completing online external assessments.

A briefing session 6 232 was held on 19 January and the closing date for submission was on 4 February 2022.
The deviation was caused by a service provider not being appointed to develop an online assessment system.

The tender was re-advertised because the bidders did not meet the minimum requirements.

This forms part of the targets set in the 2022/2023 Annual Performance Plan.

5.4.

Registration Programme Purpose: Ensure the registration of industry businesses and security officers is done in accordance with the PSIR Act.
Measurable Objectives: The programme aims to ensure the private security industry is efficiently registered and transformed.

The Registration Programme achieved one out of three performance targets, which is an achievement rate of 33.3%, which is a decrease compared to the 50% achievement rate recorded in 2020/21.

The target for an average turnaround time of 12 working days for registration of applications meeting all the requirements for security officers was not achieved in 2021/22.
The average turnaround time was 18 working days, which is a deviation of six days.

According to the Authority, the deviation was caused through historical delays by external service providers not meeting the turn-around-time to conduct criminal record verifications which had a cumulative effect on the programme not being able to meet the turnaround time.

Security guards must be South African citizens and have no criminal record.
As such, applicants must be screened against the criminal record database of the SAPS.

In addition, implementation challenges with the launch of the digital platform also impacted the turnaround time.

The target for 30% of applicants registered through the online registration platform was not reached in 2021/22, because delays in the implementation of the online platform resulted in the target not being met.

Implementation challenges also caused lower registration figures than expected.

6.
6.

HUMAN RESOURCES At the end of March 2022, the PSIRA had 319 permanent staff members, of which most are attached to Law Enforcement (173 staff), followed by Finance and Administration (107 staff), Communication and Training (25 staff) and Registrations (14 staff).

PSIRA also employed 44 interns during the 2021/22 financial year (no interns were employed in the previous financial year).

Personnel expenditure constitutes 58% of the Authority’s total expenditure in 2021/22.
As at 31 March 2022, the average vacancy rate for the Authority was 6.58%, which is a significant increase compared to the 4.82% vacancy rate at the end of the previous financial year (in 2019/20, the vacancy rate was 1.85%).

The highest percentage of vacancies were in the Law Enforcement Programme (9% vacancies).

During the 2021/25 financial year, 33 personnel left the employment of PSIRA, of which 27 employees resigned, four staff members were dismissed for misconduct and two employees died.

7.
7.

ROLE OF PRIVATE SECURITY IN THE JULY 2021 UNREST Part of KwaZulu-Natal and Gauteng experience a significant level of civil unrest from 08 July to 17 July 2021.

The unrest led to looting, destruction of property and the disruption of economic activity.

During the violence, many people were injured and killed (estimated at 354 deaths) and over R50 billion 7 233 was lost to the economy.
On 05 August 2021, President Ramaphosa announced the appointment of an Expert Panel to review the response to the unrest.

As part of the review, the Panel considered the role played by the private security providers.

Due to a lack of response from the South African Police Service (SAPS), businesses had to rely on private security providers to secure their properties.
During the hearings, PSIRA stated that they received many calls from security service providers requesting that they contact police management and Ministers to request them to allow the security service providers to assist in defending infrastructure under attack.

They were prepared to play a bigger role beyond just fulfilling the mandates of their direct client.

During the hearings, PSIRA addressed various accusations of the abuse of power by private security service providers.
The Authority reiterated that private security guards are not allowed to search or arrest members of the public, but may do so within the property owned by a business client.

Security officers are also not allowed to set up roadblocks on public roads or to investigate members of the public.

PSIRA indicated that security guards found guilty of unlawfully setting up a roadblock, arresting or assaulting members of the public will be held to account by the PSIRA and the SAPS.
During the hearings, PSIRA informed the Panel that steps were taken to investigate alleged breaches by security service providers (or members thereof) and to tighten controls in the regulatory system.

PSIRA made the following recommendations for a more effective response to future events of the kind experienced in July 2021.

The most salient of these were the following: • There should be more sharing of information (in fact this should be institutionalized) between the state’s security services and PSIRA.
• A crime prevention strategy between the SAPS and PSIRA needs to be developed; this could include SSPs being afforded minimum police-related powers in times of crisis and equipped with legal knowledge about the extent of their role, to be more effective.

• To maintain professionalism SSPs would have to be given the necessary training if they are to play a greater role in the maintenance of public order in times of crisis.
• There is a need for advocacy and training in Human Rights for all their affiliates.

8.

COMMITTEE OBSERVATIONS The Committee made the following key observations during the 2021/22 Annual Report hearing: Inspections: The Committee wanted to know if PSIRA is conducting inspections frequently with the private securing companies to ensure that there is compliance with the law in terms of having security guards in possession of the prescribed certificates.
PSIRA confirmed that the inspections are conducted and there were a number of arrests that took place, particularly on the companies that are utilising people that are not registered.

In addition, both the business owners and security officers were arrested for operating illegally without being properly registered.
Firearms: PSIRA should indicate if inspections are conducted to check if security guards are complying accordingly based on PSIRA-prescribed regulations and the Firearms Control Act, 2000 on the usage of firearms which must be registered upon issuing of licenses.

If not, PSIRA should provide the number of the security guards who were arrested for being in possession of unlawful firearms.

PSIRA in its response, indicated that it was conducting inspections of all companies that are utilising firearms.
For instance, there was an incident that happened where firearms were given to guards who were not licensed.

PSIRA conducted a number of operations in the financial year under review and there have been arrests of security officers who were illegally in possession of firearms.

PSIRA referred 8 234 to a shooting incident that occurred in the Nkomazi municipality which led to the death and injuries of workers who were protesting outside the municipalities by security officers.
PSIRA indicated that the investigation is underway and once this matter is finalised, a report will be submitted to the Committee.

Action plan: The Committee noted with concern that there was a regression in the audit opinion of the Authority, with a qualified audit opinion in 2021/22.

It was pointed out that PSIRA has been constantly doing sterling work over the years although it could not obtain an unqualified audit outcome in the financial year under review.
The Committee expressed its dismay even though it believed that PSIRA can turn around the situation to improve its performance.

The Committee wanted to know what measures will be put in place by PSIRA to turn around the current situation.

An explanation was given by PSIRA about the processes that will be implemented in preventing the reoccurrence of the finding in striving to obtain a clean audit.
The Audit Committee will provide support in reviewing the source documents required and the expert will make sure that the principal liability note in the financial statement is appropriately presented in the financial statement.

PSIRA will use experts from various institutions such as the office of the Auditor–General South Africa and the Department of National Treasury.

PSIRA mentioned that a meeting has been arranged with AGSA to run through all the work that has been done.
Towards the end of the third quarter, PSIRA will prepare an interim financial statement and request AGSA to assess if there are any financial control deficiencies.

The Audit Committee will be constantly updated on the action plan.

The Audit Committee and Council will look at the internal audit and AGSA interim report so that they are assured that the internal controls are enhance to eliminate the problem going forward.

PSIRA stated that it has good financial management principles in place.
The Committee wanted assurance from the PSIRA management that they are still able and capable to address this problem.

PSIRA assured the Committee and public that it remains an organisation which are managed properly.

The governance processes are in existence and the financial controls have not collapsed as the Chairperson of the Audit Committee explained.

PSIRA is still managing the organisation and will be able to turnaround the situation.
Illegitimate security companies: The Committee expressed concern about the number of “fly-by- night” companies in the security industry that are not registered but operating.

PSIRA should explain what it is intending to do to ensure that the companies that are operating without authorisation are eliminated.

PSIRA admitted that there are companies that are operating without being registered.

The arrests were made on both the business owners and the security officers.
Uniform: PSIRA should indicate whether it has a code of conduct which regulates security companies regarding uniforms given by security companies to employees.

PSIRA explained that it is an obligation for security companies to provide two sets of uniforms to the individual employee without charging any fee to them.

Every security business must provide every security officer in its employ with sufficient, distinctive articles of clothing constituting a standard uniform of that security business.

9.
9.

COMMITTEE RECOMMENDATIONS The Portfolio Committee on Police recommends the following: 1.

The Committee recommends that PSIRA should strengthen its inspection operations of security providers and prosecution to ensure that there is compliance from security service providers who break the law.

9 235 2.
9 235 2.

The Committee recommends that PSIRA should enforce effective compliance with regulating firearms to ensure that the firearms that are utilised by the security companies to comply with the laws of the country and are registered.

3.

The Committee recommends that PSIRA should implement mechanisms that will assist them to improve its Audit outcome in order to prevent the reoccurrence of obtaining another qualified audit.

4.
4.

The committee recommends that every security service provider must comply with the PSIRA legal requirements on the provision of uniforms to security officers at no cost who are under their employ providing security services as per PSIRA Regulation.

5.
5.

The Committee recommends that PSIRA must strengthen its audit action plan and advised the Authority to utilise a combined assurance model and internal audit to ensure that audit matters that affected their audit outcome are addressed, with specific attention to risk assessments on its principal liability.

10.

CONCLUSION The Committee Chairperson in her closing statement indicated that PSIRA was one of the important entities which played a crucial role in regulating the Private Security Industry.
The Chairperson thanked the PSIRA Council, Deputy Minister of Police and PSIRA management for their presentation and accounting to Parliament.

The Committee noted in its assessment that closer attention should be to paid to the Authority and the Chairperson instructed committee personnel to schedule PSIRA more often when drafting committee programs scheduled for portfolio committee meetings in future.

Report to be considered.

10 236