Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698929066871.pdf (South Africa)
Friday, 20 October 2023] No 142—2023] FIFTH SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ FRIDAY, 20 OCTOBER 2023 _____________________ TABLE OF CONTENTS ANNOUNCEMENTS National Assembly 1.
Membership of National Forensic Oversight and Ethics Board ..................................... 2 Referral to Committees of papers tabled ......................................................................... 2 2.

TABLINGS National Assembly 1.

Speaker ............................................................................................................................ 2 National Council of Provinces 1.
Chairperson ..................................................................................................................... 3 COMMITTEE REPORTS 1 National Assembly 1.

Tourism ............................................................................................................................ 5 2.

Agriculture, Land Reform and Rural Development ....................................................... 63 3.
Women, Youth and Persons with Disabilities ................................................................ 65 4.

Women, Youth and Persons with Disabilities ................................................................ 67 5.

Home Affairs ................................................................................................................ 157 6.

Sport, Arts and Culture ................................................................................................ 228 7.
Police ............................................................................................................................ 275 8.

Police ............................................................................................................................ 312 9.

Police ............................................................................................................................ 333 10.
Police ............................................................................................................................ 349 ANNOUNCEMENTS National Assembly The Speaker 1.

Membership of National Forensic Oversight and Ethics Board (1) Letters from the Minister of Police, informing the National Assembly of changes in the membership of the National Forensic Oversight and Ethics Board, in terms of the Criminal Law (Forensic Procedures) Amendment Act, 2013 (Act No.

37 of 2013).
37 of 2013).

Referred to the Portfolio Committee on Police.

2.

Referral to Committees of papers tabled (1) The following paper is referred to the Joint Standing Committee on the Financial Management of Parliament for consideration: (a) Monthly Financial Statements of Parliament – September 2023, tabled in terms of section 54(1) of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (Act No.

10 of 2009).

TABLINGS National Assembly 1.
The Speaker (a) Letter dated 18 October 2023, from the Minister of Agriculture, Land Reform and Rural Development to the Speaker of the National Assembly, explaining the 2 reasons for the delay in the tabling of the Annual Report of the Department of Agriculture, Land Reform and Rural Development for 2022-23: Dear Honourable Speaker LATE TABLING OF THE 2022/2023 ANNUAL REPORT OF THE DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT The Public Finance Management Act, 199 (Act No.
1 of 1999) and National Treasury Regulations prescribe that all national departments and public entities must table their Annual Reports to the relevant legislatures within five months after the end of financial year.
The Department of Agriculture, Land Reform and Rural Development will not be able to table its 2022/2023 Annual Report within the stipulated period, due to confirmation received from AGSA that conclusion on Agricultural Land Holding Account (ALHA) report will only be communicated to the department on the 25th October 2023.
This will unfortunately leave the department with insufficient time to take the whole annual report through internal quality assurance processes including final review of the report by AGSA officials.

Please accept my request for further extension of the tabling of the report.

The Department will be able to table the 2022/2023 Annual Report before the 30th November 2023.

Kind regards Signed MRS A.T. DIDIZA, MP MINISTER FOR AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT National Council of Provinces 1.
The Chairperson (a) Letter dated 18 October 2023, from the Minister of Agriculture, Land Reform and Rural Development to the Chairperson of the National Council of Provinces, explaining the reasons for the delay in the tabling of the Annual Report of the Department of Agriculture, Land Reform and Rural Development for 2022-23: Dear Honourable Chairperson LATE TABLING OF THE 2022/2023 ANNUAL REPORT OF THE DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT The Public Finance Management Act, 199 (Act No.
1 of 1999) and National Treasury Regulations prescribe that all national departments and public entities 3 must table their Annual Reports to the relevant legislatures within five months after the end of financial year.
The Department of Agriculture, Land Reform and Rural Development will not be able to table its 2022/2023 Annual Report within the stipulated period due to confirmation received from AGSA that conclusion on Agricultural Land Holding Account (ALHA) report will only be communicated to the department on the 25th October 2023.
This will unfortunately leave the department with insufficient time to take the whole annual report through internal quality assurance processes including final review of the report by AGSA officials.

Please accept my request for further extension of the tabling of the report.

The Department will be able to table the 2022/2023 Annual Report before the 30th November 2023.
Kind regards Signed MRS A.T. DIDIZA, MP MINISTER FOR AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT COMMITTEE REPORTS National Assembly 4 1.
BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON TOURISM, DATED 20 OCTOBER 2023 The Portfolio Committee on Tourism (hereafter referred to as the Committee), having considered the financial and non-financial performance of the Department of Tourism (hereafter referred to as the Department) and South African Tourism (hereafter referred to as SA Tourism) for the 2022/23 financial year, reports as follows: 1.
INTRODUCTION In the 2022/23 financial year, the period under review, the Committee continued to conduct robust oversight work over the Executive as enjoined by the Constitution.

This culminated in several interventions sanctioned by the Committee to enhance compliance by the Executive.

These include but are not limited to; summoning the erstwhile Minister of Tourism to attend meetings of the Committee and account for her activities as an executive authority.
The Committee also intervened, compelling the Board of South African Tourism to cancel the sponsorship deal of R910,997,814.75 earmarked for Tottenham Hotspur Football Club; and later recommending to the National Assembly that budget not be appropriated to SA Tourism until special conditions were met to improve governance and financial management.

With the arrival of the new Minister of Tourism in March 2023, Hon.
Patricia de Lille, the Committee continued to encounter governance issues in both the Department and SA Tourism for the greater part of the period under review.
The main oversight issues included dealing with matters such as proper implementation of infrastructure projects; and the dysfunctional Board of South African Tourism; an entity faced with leadership crises and operated by a temporary/acting executive management, including the Acting Chief Executive Officer, Acting Chief Financial Officer, Acting Chief Marketing Officer, Acting Chief Strategy Officer, and Acting Chief Conventions Bureau Officer.
All the governance and operational issues had a direct impact on how the budget appropriated to the tourism portfolio was spent.

The unfortunate unintended consequence of maladministration and incompetence in SA Tourism was that valuable time was spent on 1 5 oversight over governance and operational matters, disproportionate time focused on the recovery of the sector and other germane challenges.
This document, therefore, purports to provide a Budget Review and Recommendation Report that comprehensively scrutinizes the financial and non-financial performance of the Department and SA Tourism in the 2022/23 financial year.

1.1 Mandate of the Committee The Portfolio Committee on Tourism is an extension of the National Assembly and derives its functions from Rule 227 of the National Assembly.
The Committee is established by Section 57 (2) (a) of the Constitution of the Republic of South Africa (Act 108 of 1996) as read with Rule 225 of the National Assembly.
1.2 Core Functions of the Department The Tourism Act (Act 3 of 2014) outlines the mandate of tourism as to promote the growth and development of the tourism sector; promote quality tourism products and services; provide for the effective domestic and international marketing of South Africa as a tourist destination; enhance cooperation and coordination between all spheres of government in developing and managing tourism; and promote responsible tourism for the benefit of South Africa and for the enjoyment of all its residents and foreign visitors.
The Department and SA Tourism execute their mandate through a myriad of legislative, policy, and strategic frameworks aimed at developing and marketing South Africa as a competitive and preferred tourism destination.

The policy, legislative and constitutional imperatives that drive tourism are as follows: 1.2.1 Constitutional and Legislative Mandate The Constitution of the Republic of South Africa (Act 108 of 1996) explicitly outlines the concurrent function of tourism in the country.
Part A of Schedule 4 of the Constitution lists tourism as a functional area of concurrent national and provincial legislative competence.

Part B of Schedule 4 lists local tourism as a local government competency.

The concurrent nature of the tourism function has its challenges that can only be addressed through cooperation and collaboration amongst the three spheres of government in the country.

2 6 At a legislative level, the Tourism Act of 2014 (Act No.
3 of 2014) enjoins the Minister of Tourism to perform specific tasks to drive tourism policy and strategic direction.

The Committee is still awaiting the introduction of the Tourism Amendment Bill to Parliament by the Minister of Tourism to address the legislative and policy gaps that have been identified in the current enabling Tourism Act.

The Tourism Amendment Bill will be drafted once the Department has finalised the policy review process which is currently underway.
1.2.2 Policy mandate The mandate of the Department is driven through the White Paper on the Development and Promotion of Tourism in South Africa (1996) and a number of strategies at a national level.

The significant policy instruments and strategies are provided hereafter: 1.2.2.1 The National Development Plan The National Development Plan (NDP) is the blueprint of government that recognises tourism as one of the main drivers of employment and economic growth.
The target of the NDP is to create an additional 11 million jobs by 2030, and tourism plays a huge role towards attaining that goal.

The NDP envisions tourism as a major source of revenue and employment creation for the country through investment in infrastructure, product and service development.
It envisages rising employment, productivity and incomes as a way to ensure a long-term solution to achieve a reduction in inequality, an improvement in living standards, and ensuring a dignified existence for all South Africans.

The Committee will conduct oversight on the 2030 targets to ascertain if this is still feasible given the dire impact of the COVID-19 pandemic on the sector.
1.2.2.2 The New Growth Path The New Growth Path (NGP) acknowledges tourism as one of the six economic pillars of South Africa.

Tourism is recognised as a labour-intensive sector, with a wide value chain that cuts across various economic sectors.

The NGP is intended to address unemployment, inequality and poverty in a strategy that is principally reliant on creating a significant increase in the number of new jobs in the economy.
The NGP thus envisages tourism as a vehicle to 3 7 expedite transformation and inclusive tourism growth that encourages the participation of all South Africans in the mainstream economy.
1.2.2.3 The White Paper on the Development and Promotion of Tourism in South Africa The current White Paper on the Development and Promotion of Tourism in South Africa (1996), recognises that tourism has been inadequately resourced and funded; has a myopic private sector; is characterised by limited integration of local communities and previously neglected groups into tourism; that there is inadequate tourism education, training and awareness; inadequate protection of the environment; poor service; lack of infrastructure, particularly in rural areas; a ground transportation sector that is not geared to service tourists; lack of inclusive, effective national, provincial and local structures for the development, management and promotion of the tourism sector; and growing levels of crime and violence on visitors.
Despite huge strides made by the Department in implementing the White Paper, the sector still reflects several challenges that were inherited from the past.

Based on the recommendations of the Committee to align the tourism policy with the contemporary global and domestic tourism trends, the Department appointed a seven-member panel of experts to review the policy.

The Committee is, however, concerned with the time it has taken the Department to finalise the policy.
1.2.2.4 The National Tourism Sector Strategy The Department is implementing the National Tourism Sector Strategy (NTSS) that spans a 10-year period (2016 - 2026).

The vision of the NTSS is for South Africa to be a top world responsible tourism destination, a safe, rapidly and inclusively growing tourism economy that leverages South Africa’s competitive edge in nature, culture and heritage, underpinned by Ubuntu and supported by innovation and service excellence.
The Committee reiterates that the tourism policy review process should take into consideration the strategic thrusts of the current NTSS and offer propositions for amendments where necessary to ensure that the strategy is aligned with the new policy priorities.
4 8 1.2.2.5 The Medium-Term Strategic Framework (2019 - 2024) The sixth administration of government developed its 2019 - 2024 Medium Term Strategic Framework (MTSF), which purports to give effect to the implementation of the NDP Vision 2030 and for the execution of the majority electoral mandate.

The MTSF recognises tourism as a national priority sector that can play a key role in the country’s economic transformation, addressing unemployment challenges and developing a better Africa and world.
1.2.2.6 The Economic Reconstruction and Recovery Plan (ERRP) The Economic Reconstruction and Recovery Plan (ERRP), published in late 2020, is the country’s plan for overall economic recovery after the COVID-19 pandemic.

The ERRP identifies eight priority interventions to drive the reconstruction and recovery of the South African economy.
In addition to tourism being identified as one of the priority areas of intervention in the ERRP, the tourism sector has a contribution to make to a number of other priorities of the ERRP.

1.2.2.7 The Tourism Sector Recovery Plan (TSRP) The Tourism Sector Recovery Plan (TSRP) acknowledges the need for targeted and coordinated action to mitigate the impact of the COVID-19 pandemic and to set the sector on the most optimal path to recovery, transformation and long-term sustainability.
The TSRP is anchored on three interlinked pillars with a number of strategic interventions to support each theme.

The TSRP also identifies enablers to support tourism recovery.

1.2.2.8 State of the Nation Address The 2022 State of the Nation Address (SoNA) was delivered against the backdrop of the Tourism Sector Recovery Plan (TSRP) that was developed to caution the industry against the devastating impact of the COVID-19 pandemic.
The TSRP cannot be confined to the mandate of the Department alone as tourism is an interdependent sector reliant on the mandate of other sector departments.

The importance of inter-departmental cooperation is critical in realising the full potential of the tourism mandate.
Accordingly, the implications of SoNA are that without efficient infrastructure, electricity, water distribution and broadband networks, less red 5 9 tape, and fast-tracking of E-visas, the tourism sector would not reach its full potential.

The Department, therefore, cannot work in isolation but should partner with relevant sector departments and other parliamentary committees.
1.3 Strategic Outcome-Oriented Goals of the Department and Delivery Agreement targets for 2022/23 In line with its vision of complementing the national priorities, the Department identified objectives that would accelerate the delivery of services in the tourism sector.
Outlined below are the strategic outcomes of the Department, as stated in the 2020/21 – 2024/25 Strategic Plan, which correlate with the Government’s Outcomes, namely: 1.3.1 Strategic priorities for 2022/23 The Department pursues the following priorities in the 2019 – 2024 government Medium Term Strategic Framework: • Priority 1 - Building a capable, ethical and developmental State; • Priority 2 - Economic Transformation and Job creation; and • Priority 7 - A better Africa and world.
In line with the MTSF, the work of the Department of Tourism over the medium term is outlined to focus on: • Strengthening capabilities internally to ensure the long-term sustainability of the sector; • Enhancing and maintaining core tourism assets and infrastructure, and in so doing creating work opportunities; • Supporting historically disadvantaged tourism enterprises; • Implementing norms and standards for safe operations across the tourism value chain; and • Enhancing tourism safety in collaboration with the South African Police Service.
6 10 The 2022/23 strategic priorities are captured in Table 1.

Table 1: Strategic priorities for 2022/23 Outcome MTSF Outcome Priority 1: Building a and capable, developmental State ethical Priority 2: Economic Transformation and Job creation.

Priority 7: A better Africa and world • Conducting business in a manner that creates public confidence in the state.
• This requires excellent systems for the management of public resources, ridding the system of any inefficiency and enabling oversight by institutions of the state in the interest of the public.

Jobs created, contribution to GDP, and revenue generated from tourism activity.

Observing principle of inclusivity to drive tourism-sector transformation.

• • Increasing tourism’s economic contribution driven by an increase in domestic and international tourist arrivals and tourist spend.
MTSF priority supported Achieve corporate cooperative governance.

good and Increase the tourism sector’s contribution to inclusive economic growth.

Increase the tourism sector’s contribution to inclusive economic growth.
Source: Department of Tourism Annual Performance Plan – 2021/22 – 2023/24 1.4 Purpose of the Budgetary Review and Recommendation Report The Budgetary Review and Recommendation Report (BRRR) compilation process is governed by the Money Bills Amendment Procedure and Related Matters Act (Act 9 of 2009).

The Act sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department.
In October of each year, the Committee must compile the BRRR that assesses service delivery performance given available resources; evaluate the effective and efficient use and forward allocation of resources; and may make recommendations on forward use of resources.

The BRRR also acts as a source document for the Standing/Select Committees on Appropriations/Finance when making 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.

1.5 Method The Minister of Tourism tabled in Parliament the Annual Reports for the Department and SA Tourism.

The Annual Report for the Department was published in the parliamentary Announcements, Tablings and Committee Reports (ATC) No.

128 of 28 September 2023.


The 7 11 Committee then scheduled a series of meetings to scrutinise and get more insights into the financial and non-financial performance of the tourism portfolio in the year under review.

On 10 October 2023, the Committee convened a meeting with the Office of the Auditor-General (AGSA), and the Department on the departmental annual performance outcomes.

On 17 October 2023, the Committee convened a meeting with SA Tourism.
These meetings were convened in preparation for drafting and tabling the 2023 tourism portfolio Budget Review and Recommendation Report.

The 2023 Committee’s Budget Review and Recommendation Report was then adopted and published in the ATC on 20 October 2023.
1.6 Outline of the contents of the Report The report is made up of five constituent parts as follows: (i) Constitutional, legislative and policy mandate of the Committee and the process that was followed in developing this Budget Review and Recommendation Report.

(ii) Previous financial performance of the Department on both financial and non-financial aspects.

(iii) Financial, non-financial and service delivery issues for the period under review.
(iv) Key findings/observations from the oversight work of the Committee, public hearings and research by external stakeholders that inform the recommendations.

(v) Recommendations to the Ministers of Finance and Tourism in terms of the budgetary requirements, performance, and service delivery improvement of the Department.

2.

OVERVIEW OF THE KEY RELEVANT POLICY FOCUS AREAS The current government legislative, policy and strategic frameworks are aligned with the overall mandate of tourism in the country.
There is a need to review some strategies and policies to be perfectly aligned with the Vision 2030 of the National Development Plan.

The Department has started a process of policy review as indicated in this report.

The policy review process will address a number of gaps raised by the Committee and the tourism sector at large to ensure that the country is competitive with other comparative tourism destinations.
2.1 Key Government policies The following policies and strategies are due for review within this medium term: 8 12 • White Paper on the Development and Promotion of Tourism in South Africa, 1996.

• Tourism Act, No.

3 of 2014.

• National Grading System.

• National Tourism Sector Strategy, 2016.

2.1.1 Policy review process There is significant progress made in the policy review process with Cabinet having approved the Green Paper on the Development and Promotion of Tourism in South Africa.
The key elements of the Green Paper include, but are not limited to: • Implementation of a research-based tourism safety response programme in partnership with relevant agencies; • Develop and regularly review tourism crisis management framework to enable a response to crises; • Implementation of Tourism BBBEE Codes & strengthening mechanism for access to finance; • Facilitation of ease of access to the destination, especially as it relates to immigration and transport.
• Recommitting the sector to the responsible tourism agenda.

• Regulation of short-term rental accommodation to ensure policy certainty.

The Green Paper focuses on four policy thematic areas with a specific focus under each.

The four thematic areas are: • Evolving former policy areas: Tourism governance, safety and security management and transformation.
• Emerging policy issues: Embracing technology, crisis management, accessing the destination, quality visitor services, skills supply and employment and tourist services.

• Policy issues for targeted growth: Prioritising rural & peri-urban tourism, enhancing domestic tourism for destination resilience and destination marketing and branding.

• Sustainable growth model: Responsible tourism, knowledge management research and insights, tourism diplomacy and tourism trade & investment.
9 13 2.2 Overview of the revised Strategic Plan and Annual Performance Plans The revised Annual Performance Plan for 2022/23 aligned to the tabled 5-year Strategic Plan.

The Department performs its mandate through four Programmes, namely, Programme 1: Administration; Programme 2: Tourism Research, Policy, and International Relations; Programme 3: Destination Development; and Programme 4: Tourism Sector Support Services.
2.2.1 Budget allocation in line with the reviewed strategic plan The overall budget allocation to the Department decreased by 6.33 percent in real terms to R2 491.6 billion in 2022/23 when compared to the budget of R2 545.4 billion in the 2021/22 financial year.
The budget was allocated across the Programmes as follows: • Programme 1: Administration (R325.1 million); • Programme 2: Tourism Research, Policy and International Relations (R1 416.0 billion); • Programme 3: Destination Development (R393.9 million); and • Programme 4: Tourism Sector Support Services (R356.6 million).

2.2.2 Departmental programmes The Department was pursuing the strategic objectives and the strategic outcome-oriented goals through these four Programmes as outlined in Table 2.
The budget allocation for Programme 1 increased by 4.9 percent in nominal terms from R309.8 million in 2021/22 to R325.1 million in 2022/23.

Of this amount, R174.1 million (53.5%) was for Compensation of Employees.

The major cost driver under this programme was Corporate Management, with an allocation of R182.2 million for the 2022/23 financial year.

The allocation for this sub-programme is in response to the Department seeking to strengthen internal capacity.
10 14 Table 2: Departmental Programmes Programme of Name Programme Administration Programme 1 the Purpose of the Programme Programme 2 Tourism Policy Relations and Research, Internal Programme 3 Destination Development Programme 4 Tourism Sector Support Services and To provide strategic leadership, management and support services to management.

The sub- programmes for Programme 1 are Ministry; Corporate Management; Management; Office Financial Management; Accommodation.
To enhance a strategic policy environment, monitor the tourism sector’s performance and enable stakeholder relations.

The related strategic outcome-oriented goal is to achieve good corporate and cooperative governance To facilitate and co-ordinate destination development.

The strategic outcome-oriented goal is to increase the tourism sector’s contribution to inclusive economic growth.
To enhance transformation of the sector, increase its development and to ensure that South Africa is a competitive tourism destination.

The strategic outcome-oriented goal is to increase the tourism sector’s contribution to inclusive economic growth.

levels and support skills Source: Adapted from the Department of Tourism 2021/22 Annual Performance Plan Programme 2 received a budget allocation of R1 416.0 billion for 2022/23, of which R1 329.2 billion was transferred to South African Tourism (SAT).
This represents 93.9 percent of the Programme’s budget allocation.

The remaining allocation available for this Programme was R86.8 million, of which R57.4 million (66.1%) was allocated to Compensation of Employees.

This left the programme with just about R29.4 million for the rest of its projects/programmes.

Budget allocation reverted to 2019 allocations as a result of the lifting of global lockdowns and travel bans and vaccination rollouts.
The increase in allocation was aimed at recovery initiatives for the sector.

Some of the projects under this programme include research partnerships with universities, policy development and evaluation, and international relationship management through bilateral agreements and memberships at various fora.

Programme 3 was allocated R393.9 million for 2022/23, the bulk of which, i.e., R311.7 million (79.1%), was allocated to the Working for Tourism sub-programme.
A total of R333.8 million was allocated to Goods and Services.

The budget allocation for Programme 3 decreased by 11 15 19.16 percent in real terms from R466.3 million in 2021/22 to R393.9 million in 2022/23.

The main cost driver under this programme, at R311.7 million, was the Working for Tourism expanded public works programme.

This sub-programme entails various skills development programmes and tourism projects.
Through these, the Department planned to create 12 370 work opportunities over the medium term.

However, the budget for this sub-programme substantially decreased for the financial year by 21 percent in real terms.

Another substantive decrease in allocation was experienced in sub-programme 1, Destination Development Management, by 18.67 percent in real terms.
Some of the activities under this sub-programme include destination enhancement initiatives at the tourism site and supporting South African National Parks sites through infrastructure maintenance programmes.

These projects are critical for destination attractiveness, bringing in revenue to destinations and creating employment.

Programme 4 was allocated R356.6 million for the 2022/23 financial year.
This included Compensation of Employees with a budget allocation of R79.4 million and the Tourism Incentive Programme (TIP) with a budget allocation of R242.0 million.

The projects within TIP included tourism market access, tourism grading support, tourism destination development and energy-efficient projects.

The TIP consumed 67.8 percent of the total Programme budget whilst the Enterprise Development and Transformation sub-programme consumes 13.3 percent.
The budget allocation for Programme 4 decreased by 11.73 percent in real terms from R386.6 million in 2021/22 to R356.6 million in 2022/23.

Allocation to this sub-programme decreased by 15.85 percent in real terms.

The Tourism Incentive Programme sub-programme, at R242.0 million, is the main cost driver in this programme.
This programme aims to incentivise priority areas, including providing market access support, tourism grading support, implementation of energy efficiency initiatives and funding of transformation initiatives in the tourism sector towards unlocking capital investment by black tourism entrepreneurs.

Initiatives in this Programme are in line with the Department’s strategic priorities towards economic transformation and job creation, responsible tourism, and transformation of the sector.
2.3 Overview of key developments in the organisational and service delivery environments of the Department for the 2022/23 and 2023/24 MTEF cycle.
The significant developments in the period under review include, but are not limited to: 12 16 • Dissolution of the Board of South African Tourism by the Minister and appointment of a three-member Board for the Entity, • The 2023/24 appropriation of budget to Vote 38 with conditions, • Approval by Cabinet of the Green Paper on the Development and Promotion of Tourism in South Africa, • Out-of-court settlement that resolved the interdict against the implementation of the R1.2 billion Tourism Equity Fund, and • Intervention by the Committee to stop the R910,997.75 million sponsorship deal to Tottenham Hotspur Football Club.
3.

SUMMARY OF PREVIOUS YEAR KEY FINANCIAL AND NON-FINANCIAL PERFORMANCE RECOMMENDATIONS OF THE COMMITTEE 3.1 2021/22 BRRR recommendations The Committee convened a meeting with the Department and SA Tourism to assess the extent to which the 2021/22 BRRR recommendations were implemented.

The Committee is of the view that the Department did not adequately respond to the recommendations as it provided general responses to specific recommendations.
In some instances, the Department just indicated that the recommendation was noted without explaining how they would address issues raised.

Some of the issues that emanated from the implementation of the BRRR recommendations include, but are not limited to: • Sustainability framework - the Department is at an advanced stage of the development of the project sustainability framework which will ensure that infrastructure projects implemented by the Department are operational and sustainable.
• Forensic reports - the guidance from the Minister and the Deputy Minister was that the Committee may consider having a closed session.

The Committee agreed to a closed session meeting which was scheduled for 28 November 2023.

• Investment facilitation – the Department is currently working on the framework to determine which projects will be supported.

A recommendation by the Committee to develop Standard Operating Procedures has also been taken on board by the Department.
The Department facilitates matchmaking for investment-ready projects with the Development Finance Institutions (DFIs).

13 17 • Audit Action Plans – Audit Action Plans were developed by both the Department and SA Tourism.

• Tourist Guide Fund beneficiaries – the consequence management on the payment of irregular tourist guides was effected.

Criminal cases were opened in case of claims that were made on behalf of deceased beneficiaries.
The Committee demanded that the Department should provide a comprehensive report on this matter.

• Collaboration with South African Police Services (SAPS) through the Memorandum of Understanding – the Committee insisted that the safety monitors be trained, and collaboration intensified with the SAPS.

On a recommendation of insourcing tourism monitors, the response by the Department about budget constraints made it clear that this recommendation was not going to be implemented.
The Committee encouraged the Department to work closely with SAPS to ensure the safety of tourists.

• Employment of foreign nationals - the Committee will invite the industry to discuss the matter of citizens being prioritised for employment and that fair compensation of employees is practised in the tourism sector.

• Grading Council – the Committee insists that whether there are financial implications or not, the Grading Council should be housed outside of SA Tourism.
The tendency of big operators refusing to be graded should be stopped and a policy should be in place to compel all establishments to be graded.

• National Public Transport Regulator (NPTR) - the Committee insists that the Department should continue working with the NPTR to address delays in issuing tour operator licences.

• Intergovernmental support on infrastructure projects - the Department pointed out that they promote intergovernmental coordination amongst various departments.
The Committee was of the view that the Department should have reported on progress made in implementing intergovernmental coordination across various stakeholders.

• On the merger of SA Tourism and Brand SA - the Committee was satisfied with the explanation that the merger has been put in abeyance.

The Committee insists that it wants Brand SA to report to the Department of Tourism to align activities.
• Environmental health certificates - the Committee was concerned about health certificates that are not issued timeously to restaurants.

The Department confirmed that it has received a number of complaints about the delays in issuing certificates.

The Committee will invite the Federated Hospitality Association of South Africa 14 18 (FEDHASA) and the South African Township and Village Tourism Association (SATOVITO) to get more information on this and other related matters.
• E-visas - the Committee reiterated that the E-visa regime should be fast-tracked to facilitate the movement of tourists and tracking of illegal immigrants who come to South Africa.

The inclusion of more countries was acknowledged, but more need to be added.

• Infrastructure collapse - the broader infrastructure neglect in South Africa heavily affects the tourism sector.

This includes road networks, electricity supply, water reticulation, and others.
• Asset management – the Committee raised a concern about fixed assets and the asset register.

SA Tourism indicated that the asset management issue has been resolved as the asset register has been developed.

• Monthly performance dashboards on performance – the Committee was concerned that if the Entity has developed a monthly dashboard on performance, why was there still underperformance?

The Committee insists on improved monthly and quarterly performance against set targets.
• Recruitment of staff by SA Tourism - the Committee was concerned by the Entity’s use of a recruitment agency for appointing the CFO, and urged the Entity to consider what would be the cost-benefit analysis of appointing internally against using external service providers.

• Impact of National Treasury Regulations- the Department indicated that the National Treasury Regulations did have an impact on the implementation of infrastructure projects, but this has been since resolved.
• Cluster approach – the Department indicated that they have opted for a cluster approach in troubleshooting cross-cutting tourism issues.

Through this approach, they are able to prioritise issues that pertain to tourism.

The Department raises tourism matters in the clusters and conducts follow-up on issues, e.g., the Department currently serves in the NATJOINTS where tourist safety issues are prioritised.
• Recognition of Prior Learning (RPL) – the Department indicated that the intention is to work with the provincial Registrar of Tourist Guides in Limpopo province to provide accredited training and RPL for site guides.

The Registrar detects at what level the site guides are, in order to determine the level of training required.
15 19 • Collaboration with TVET colleges – the Department indicated that they are currently accessing the database of learners who have gone through theoretical training and are in need of a practical aspect.

These learners will be assisted through Expanded Public Works Programme training processes.

The challenge is that government institutions are also expected to bid, otherwise, it becomes an offence for the Department to spend money on another government entity.
3.2 Oversight reports The Committee undertook two oversight visits during the period under review.

One oversight visit was undertaken to Mopani and Vhembe Districts, Limpopo Province from 19-22 April 2022 to assess the implementation of tourism infrastructure development projects.

Another oversight visit was undertaken to the North West Province on 18-21 April 2023.

The Committee observed similar issues in both provinces.
Some of the observations included, but were not limited to: • The Department is involved in projects that are not investment-ready, such as in the case of Legaga La Nkwe, where the Environmental Impact Assessment had not been completed.

• Poor Community participation in project conceptualisation and implementation leading to ownership challenges and vandalism of infrastructure.
This included a call for sub- contractors to be from the local community for the 30 percent value of the project and employment of local people in projects construction.

• The general observation was that roads in both provinces are not in a good condition appropriate for a tourism destination.

There are also poor roads leading to project sites and there is a lack of tourism signage.
• Vandalism, dilapidation, and negligence of projects, with structures stripped off all the fittings, including electricity wiring and bathroom amenities.

• Slow pace of law enforcement where the Committee observed that there was no prosecution on all cases that had been opened on vandalised projects.

• There was no information availed to the Committee on the forensic audits and the role of the Public Protector in some projects.
16 20 • Poor project designs and inferior workmanship whereby the Committee observed poor workmanship and unusable project concepts.

• Involvement of the Development Bank of Southern Africa who had taken over implementation of all the infrastructure projects supported by the Department.
• Need for revised project planning in Lotlamoreng Dam and improved intergovernmental coordination and collaboration to render the project a comprehensive project precinct, incorporating Credo Mutwa’s site and Mahikeng concentration camp cemetery.

• Lack of institutional capacity for the Department to implement infrastructure projects and a planned establishment of a Project Unit in the Department.
• The Committee observed poor value for money with cost escalations and projects needing more money for completion.

4.

OVERVIEW AND ASSESSMENT OF FINANCIAL PERFORMANCE The Committee assessed the budget allocation and expenditure trends in the sector over the 2018/19 – 2022/23 financial years to establish the trends for Vote 38.

The assessment confirmed the trend that the Department always spends almost 100 percent of its allocated budget whilst failing to equivalently achieve the set targets.
4.1 Budget and expenditure 2018/19 – 2022/23 Budget allocation over the five-year period increased steadily, albeit inadequate to satisfy the needs of the sector.

Table 3 depicts budget allocation over the period under review.

In the 2018/19 financial year, the Department was appropriated R2 261 817 000 and spent R2 234 802 000 which was 98.8 percent of its appropriated budget.
In the 2019/20 financial year, the Department was allocated R2.392 billion and was able to spend R2.384 billion, translating to 99.7 percent expenditure.

In the 2021/22 financial year, the Department was allocated R2.5 billion and was able to spend 99.7 per cent.

In the 2022/23 financial year, the Department was allocated R2.5 billion and was able to spend R2.47 billion, equivalent to 99 percent of expenditure.
17 21 A worrying trend was observed at SA Tourism in the 2022/23 financial year where the Entity overspent its allocated budget by R105 million and incurred a deficit of R183 million.
Table 3: Overview of budgetary allocation and expenditure 2018/19– 2022/23 % change * Voted ** % change from Adjusted Expenditure Expenditure Voted from Allocation previous Allocation (R'million) as a Year Allocation previous adjusted for year (R'million) (R'million) year inflation (adjusted (nominal) (R'million) for inflation) percentage of Adjusted Allocation (%) 2018/19 2 261 817,0 5,7% 1 827 597,32 0,2% 2 261 817,0 2 234 802,0 98,8% 2019/20 2 392 670,0 5,8% 1 837 765,58 0,6% 2 392 670,0 2 384 392,0 99.7% 2020/21 1 481 000,0 70.29% 1 426 860,0 5,0% 1 426 860,0 1 392 249,0 97,6% 2021/22 2 545 338,0 1 002.9 2 545 338,0 2 537 776,0 99,7% 2022/23 2 502 357,0 33.3% 2 502 357,0 2.4% 2 502 357,0 2 473 720,0 98.9 % * Real change in Rand value ** Real change in percentage terms Source: Calculation adapted from previous ENEs 5.
FINANCIAL PERFORMANCE FOR 2022/23 The financial performance of the Department in the year under review is as follows: 5.1 Financial statements for the 2022/23 financial year The Department of Tourism’s adjusted appropriation for 2022/23 amounted to R2 502.4 billion.

This was an increase from the initial main appropriation of R2 491.6 billion.
Table 4: Financial Statement of 2022/23 Programme Adjusted Main Actual Expenditure as % Underspending/ % Appropriation Budget Expenditure of available budget Overspending Underspending/ R million 1.
Administration 325.1 2.Tourism Research, 1 416.0 330.2 1 417.5 323.5 1 395.1 98.0% 98.4% 6.7 22.4 Policy & International Relations Overspending 2.0% 1.6% 18 22 3.Destination Development 393.9 395.6 411.6 104.0% -16.0 -4.0% 4.Tourism Sector 356.6 359.1 343.5 95.7% Support Services TOTAL 98.9% Source: National Treasury: SCOA Report Quarter 4 (2022/23) 2 473.7 2 502.4 2 491.6 15.6 28.6 4.3% 1.1% At the end of the financial year, the Department spent R2 473.7 billion or 98.9 percent of the available budget of R2 502.4 billion.
5.1.1 Quarterly spending trends The quarterly spending trends of the Department are depicted in Table 5.
Table 5: Quarterly spending trends 2022/23 ENE Allocation (R’000) Actual Expenditure (R’000) Actual % % Variance Expenditure as Cumulative from % of ENE Projected Cumulative Allocation Expenditure Projected Expenditure Programme Programme 1 Total Programme 2 Total Programme 3 Total Programme 4 Total r e t r a u Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -1% 1% 10% 3% 2% 4% 1% 1% 0.5% 1% 19 Source: Adapted from 2022/23 quarterly reports 23 The Department had a steady increase in expenditure during the 2022/23 financial year.
Cumulatively, in terms of financial performance, the Department spent R2.47 billion (98.9%) of the R2.5 billion adjusted budget.

The Department incurred an under-expenditure of R28.6 million (1.1%) of its allocated budget.

The achievement of the predetermined objectives at 96 percent was commensurate to the 99 percent expenditure.
At the end of the financial year, the Department achieved 42 (89.36%) of the 47 targets identified for the year, but 96 percent if only the Programmes that deal with service delivery are considered.

The Department reported that, while not achieved, it had completed significant work towards five (10.64%) targets.

The high expenditure without achieving all the targets has become an established pattern over the past financial years.
5.1.2 First Quarter performance for the 2023/24 financial year The Department’s main appropriation for the 2023/24 financial year amounts to R2.5 billion.

At the end of quarter one, the Department spent R770 million or 30.5 percent of the available budget of R2.5 billion.

This translates to a slow spending of R477.5 million or 38.3 percent, against the projected spending of R1.3 billion.
The slow spending was mainly on Goods and Services as a result of delays in the implementation of the Expanded Public Works Programme (EPWP); reduced transfer payments to South African Tourism; delays in transfer payments to the United Nations World Tourism Organisation (UNWTO); delays in the processing of invoices within the Tourism Incentives Programme; and delayed payments to the Federated Hospitality Association of South Africa and the National Tourism Careers Expo.
For Programme 1: Administration: Expenditure for quarter 1 amounted to R75.8 million or 23.3 percent of the programme’s available budget of R324.9 million.
This translates to an underspending of R1.6 million or 2.1 percent relative to the projected expenditure of R77.4 million, due to slow spending in operational payments within the Corporate Management subprogramme together with payments linked to Office Accommodation, owing to delayed invoices from the Department of Public Works and Infrastructure (DPWI).
In Programme 2: Tourism Research, Policy, and International Relations: Expenditure for quarter 1 amounted to R606.1 million or 42.2 percent of the programme’s available budget of R1.4 billion.
This translates to an underspending of R360.7 million or 37.3 percent relative to the projected expenditure of R966.8 million, due to reduced transfer payments to SA Tourism, 20 24 this is in line with lower than anticipated funding requirements by the entity as well as delays in transfer payments to the United Nations World Tourism Organisation (UNWTO)‐to defray foreign exchange losses, the transfer required a virement process.
For Programme 3: Destination Development: Expenditure for quarter 1 amounted to R50.8 million or 12.7 percent of the programme’s total available budget of R401.1 million.

This translates to an underspending of R93.1 million or 64.7 percent relative to the projected expenditure of R143.9 million, due to slow spending within the Expanded Public Works Programmes (EPWP) owing to delays in receiving invoices and signing of contracts with implementing agencies.
In Programme 4: Tourism Sector Support Services: Expenditure for quarter 1 amounted to R37.3 million or 10.3 percent of the programme’s total available budget of R363 million.
This translates to an underspending of R22.1 million or 37.2 relative to the projected expenditure of R59.4 million due to the Tourism Incentives Programme, owing to delays in receiving invoices and signing of contracts with implementing agencies together with delayed payments to the Federated Hospitality Association of South Africa and the National Tourism Careers Expo.

5.4 Auditor-General Report The report of the Auditor-General is presented for both the Department and SA Tourism.
5.4.1 Auditor-General’s Report with regard to the Department of Tourism The Department of Tourism obtained an unqualified audit opinion in the 2022/23 financial year.

This achievement is a significant improvement given that the Department did not have any findings on misstatements on annual financial statements as was the case in the previous financial year.
The issues raised by the Auditor-general relate to: • Some of the quotations were awarded by an implementing agent to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by Treasury Regulation 16A9.1(d).

21 25 • Senior management did not establish and implement sufficient procedures to review or monitor compliance with supply chain management prescripts and internal controls when procuring goods and services through an implementing agent.
The findings of the Auditor General are as follows: Opinion (i) I have audited the financial statements of the National Department of Tourism set out on pages 126 to 199, which comprise the appropriation statement, statement of financial position as at 31 March 2023, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.
(ii) In my opinion, the financial statements present fairly, in all material respects, the financial position of the National Department of Tourism as at 31 March 2023, and its financial performance and cash flows for the year that ended in accordance with the Modified Cash Standard (MCS) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA) and the Division of Revenue Act 5 of 2022 (Dora).
Basis for opinion (iii) I conducted my audit in accordance with the International Standards on Auditing (ISAs).

My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report.
(iv) I am independent of the Department in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa.

I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.
(v) I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

22 26 Other matters (vi) I draw attention to the matters below.

My opinion is not modified in respect of these matters.

National Treasury Instruction No.

4 of 2022/2023: PFMA Compliance and Reporting Framework (vii) On 23 December 2022 National Treasury issued Instruction Note No.
4: PFMA Compliance and Reporting Framework of 2022-23 in terms of section 76(1) (b), (e) and (f), 2(e) and (4)(a) and (c) of the PFMA, which came into effect on 3 January 2023.

The PFMA Compliance and Reporting Framework also addresses the disclosure of unauthorised expenditure, irregular expenditure and fruitless and wasteful expenditure.
Among the effects of this framework is that irregular and fruitless and wasteful expenditure incurred in previous financial years and not addressed is no longer disclosed in the disclosure notes of the annual financial statements, only the current year and prior year figures are disclosed in note 22 to the financial statements.
The movements in respect of irregular expenditure and fruitless and wasteful expenditure are no longer disclosed in the notes to the annual financial statements of the National Department of Tourism.

The disclosure of these movements (e.g., condoned, recoverable, removed, written off, under assessment, under determination and under investigation) is now required to be included as part of other information in the annual report of the auditees.
I do not express an opinion on the disclosure of irregular expenditure and fruitless and wasteful expenditure in the annual report.

Unaudited supplementary information (viii) The supplementary information set out on pages 200 to 213 does not form part of the financial statements and is presented as additional information.

I have not audited these schedules and, accordingly, I do not express an opinion on them.
23 27 Responsibilities of the accounting officer for the financial statements (vix) The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the MCS and the requirements of the PFMA and Dora; and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
(x) In preparing the financial statements, the accounting officer is responsible for assessing the Department’s ability to continue as a going concern; disclosing, as applicable, matters relating to going concern; and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the Department or to cease operations or has no realistic alternative but to do so.
Responsibilities of the auditor-general for the audit of the financial statements (xi) My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; and to issue an auditor’s report that includes my opinion.

(xii) Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Report on the audit of the annual performance report (xiii) In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, I must audit and report on the usefulness and reliability of the reported performance against predetermined objectives for selected programmes presented in the annual performance report.

The accounting officer is responsible for the preparation of the annual performance report.
24 28 (xiv) I selected the following programmes presented in the annual performance report for the year ended 31 March 2023 for auditing (Programme 3: Destination Development and Programme 4: Tourism Support Sector services).

I selected programmes that measure the Department’s performance on its primary mandated functions and that are of significant national, community or public interest.
(xv) I evaluated the reported performance information for the selected programmes against the criteria developed from the performance management and reporting framework, as defined in the general notice.

When an annual performance report is prepared using these criteria, it provides useful and reliable information and insights to users on the Department’s planning and delivery of its mandate and objectives.
(xvi) I performed procedures to test whether: • the indicators used for planning and reporting on performance can be linked directly to the Department’s mandate and the achievement of its planned objectives.

• the indicators are well defined and verifiable to ensure that they are easy to understand and apply consistently and that I can confirm the methods and processes to be used for measuring achievements.
• the targets can be linked directly to the achievement of the indicators and are specific, time bound and measurable to ensure that it is easy to understand what should be delivered and by when, the required level of performance as well as how performance will be evaluated.

• the indicators and targets reported on in the annual performance report are the same as what was committed to in the approved initial or revised planning documents.
• the reported performance information is presented in the annual performance report in the prescribed manner.

• there is adequate supporting evidence for the achievements reported and for the reasons provided for any over- or underachievement of targets.

(xvii) I performed the procedures for the purpose of reporting material findings only; and not to express an assurance opinion.

(xviii) I did not identify any material findings on the reported performance information of selected programmes.
25 29 Other matter (xix) I draw attention to the matter below.

Achievement of planned targets (xx) The annual performance report includes information on reported achievements against planned targets and provides explanations for over- and under-achievements.
Report on compliance with legislation (xxi) In accordance with the PAA and the general notice issued in terms thereof, I must audit and report on compliance with applicable legislation relating to financial matters, financial management and other related matters.

The accounting officer is responsible for the Department’s compliance with legislation.
(xxii) I performed procedures to test compliance with selected requirements in key legislation in accordance with the findings engagement methodology of the Auditor-General of South Africa (AGSA).

This engagement is not an assurance engagement.

Accordingly, I do not express an assurance opinion or conclusion.
(xxiii) Through an established AGSA process, I selected requirements in key legislation for compliance testing that are relevant to the financial and performance management of the Department, clear to allow consistent measurement and evaluation, while also sufficiently detailed and readily available to report in an understandable manner.

The selected legislative requirements are included in the annexure to this auditor’s report.
(xxiv) The material finding on compliance with the selected legislative requirements, presented per compliance theme, is as follows: Procurement and contract management (xxv) Some of the quotations were awarded by an implementing agent to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by Treasury Regulation 16A9.1(d).
26 30 Other information in the annual report (xxvi) The accounting officer is responsible for the other information included in the annual report.

The other information referred to does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported on in this auditor’s report.
(xxvii) My opinion on the financial statements, the report on the audit of the annual performance report and the report on compliance with legislation, do not cover the other information included in the annual report and I do not express an audit opinion or any form of assurance conclusion on it.
(xxviii) My responsibility is to read this other information and, in doing so, consider whether it is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

(xxix) If, based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact.
(xxx) I have nothing to report in this regard.

Internal control deficiencies (xxxi) I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with applicable legislation; however, my objective was not to express any form of assurance on it.

(xxxii) The matter reported below is limited to the significant internal control deficiencies that resulted in the material finding on compliance with legislation included in this report.
(xxxiii) Senior management did not establish and implement sufficient procedures to review or monitor compliance with supply chain management prescripts and internal controls when procuring goods and services through an implementing agent.

27 31 5.5 Summary of key issues contained in reports of Finance/Appropriation Committees In the period under review, the Department and SA Tourism did not have any matters reported by the finance and appropriation committees.
5.6 Summary of key financial issues contained in any other relevant report(s) The Standing Committee on Public Accounts (SCOPA) did not report any matters with regard to the Department of Tourism and SA Tourism.

5.7 2022/23 MTEF financial allocations 5.7.1 Summary of funding submissions to the National Treasury for the 2022/23 MTEF.
The detailed funding submissions made to the National Treasury for the 2022/23 financial year were as follows: (ix) The National Treasury appropriates a ring-fenced budget that will be used to develop, enhance, and market domestic tourism which is a cornerstone for successful tourism destinations.

(x) The National Treasury appropriates budget that will allow sector recovery and assists in surpassing the 2019 performance levels before the advent of the COVID-19 pandemic.

6.
6.

OVERVIEW AND ASSESSMENT OF SERVICE DELIVERY PERFORMANCE The service delivery performance assessment is presented for both the Department and SA Tourism.

6.1 The Department of Tourism At the end of the fourth quarter of the 2022/23 financial year, the Department was able to achieve 42 of its 47 identified targets, with five (10.64%) targets being partially achieved as depicted in Table 6.
The achievement in the four Programmes was as follows: 28 32 Table 6: Achievement of Targets Per Programme Programme Planned Targets Achievement % achieved 70% 91.67% Total Achieved 7 11 10 12 1.

Administration 2.

Tourism Research, Policy and International Relations 3.

Destination Development 4.


Tourism Sector Support Services Total 89.36% Source: Adapted from Department of Tourism 2022/23Annual Report 100% 93.33% 10 14 10 15 42 47 Non-Achievement % not achieved 30% 8.33% Total not achieved 3 1 0 1 5 0.0% 6.67% 10.64% At the end of the 2022/23 financial year, the Department achieved 7 of its 10 targets under Programme 1 but spent virtually all of its budget (98%) whilst achieving only 70 percent of its targets.
Under the programme, the Department underspent by 2 percent (R6.7 million) of its adjusted allocation.

The Department maintained its minimum representation of employees with disabilities at 4.5 percent, exceeding the set target of 3 per cent.

The Department continued with its support of small, micro, and medium enterprises (SMMEs), continually exceeding the set target of 30 percent across all four quarters.
The Department also reported that it implemented its Audit Action Plan for the 2021/22 financial year, which led to positive audit findings for the 2022/23 financial year.

Under Programme 2, the Department achieved 11 of its 12 targets set for the financial year.

The Department spent 98.4 percent of its budget and achieved 91.67 percent of its targets; thus spending is more or less aligned to performance.

In Programme 3, the Department achieved all its 10 targets for the financial year.
However, it overspent on its budget by 4 percent, which translates into R16 million.

The Department reported that the overspending was due to project re‐evaluations on contractual obligations with the Development Bank of Southern Africa (DBSA), in line with the Expanded Public Works Programme (EPWP).

Programme 3 achieved all its set targets for the second year in a row.

The Department achieved 14 of its 15 targets for the financial year under Programme 4.
The Department spent 95.7 percent of its annual budget under this programme and achieved 93.33 percent of its targets.

This translates to an underspending of R15.6 million (4.3%).

Spending and performance are more or less aligned.


29 33 6.2 South African Tourism 2022/23 Service delivery performance The Entity executes its mandate through five programmes, namely, Programme 1: Corporate Support, Programme 2 : Business Enablement, Programme 3 : Leisure Tourism Marketing, Programme 4:Business Events and Programme 5:Tourist Experience.
6.2.1 Overview and assessment of financial and non-financial performance SA Tourism had 33 targets set for the 2022/23 financial year across its five Programmes.

At the end of the financial year, the Entity had achieved 20 (61%) of these targets and 13 (39%) were not achieved.

In terms of financial performance, the Entity was allocated R1.45 billion and spent R1.56 billion, which is an over-expenditure by 10 percent.
As part of the National Tourism Recovery Strategy, over the 2022/23 financial year, the Entity continued to focus on interventions that promote the recovery of the sector.
These included increasing international and domestic demand for tourism within South Africa; diversifying and ensuring the supply of quality tourism products and services; leveraging data and technology to enhance operational and marketing efficiencies; and optimising the tourism portfolio by focusing on partnerships and collaboration in the tourism value chain.

The purpose of Programme 1 is to provide support to the organisation and ensure compliance with statutory requirements.
The programme focuses on providing efficient, effective, and proactive legal, governance, enterprise risk and compliance support.

The Entity achieved six (67%) of its nine targets.

Programme 1 was allocated R158 090 million.

At the end of the financial year R208 884 million was spent, incurring an over expenditure of R50 794 million, accounting for 32 percent over expenditure.

In Programme 2, the Entity achieved all three (100%) of its targets by the end of the financial year.
The allocated budget for Programme 2 was R84 620 million and by the end of the financial year, the Entity had spent R70 202 million (83%) incurring an under-expenditure of R14 418 million (17%).

In Programme 3, the Entity achieved all five (42%) of its 12 targets by the end of the financial year.

The allocated budget for Programme 3 was R1 069 287 billion and by the end of the 30 34 financial year, the Entity had spent R935 194 million (87%), incurring an under-expenditure of R134 093 million (13%).
In Programme 4, the Entity achieved all four (100%) of its targets planned for the financial year.

The allocated budget for Programme 4 was R92 222 million and by the end of the financial year, the Entity had spent R286 325 million (310%) incurring an over-expenditure of R194 103 million (210%).

The Entity reported that the reasons for overspending include increased marketing activities at strategic events and Meetings Africa 2023 expenditure.
In Programme 5, the Entity achieved two (40%) of its 5 targets planned for the financial year.

The allocated budget for Programme 4 was R51 350 million and by the end of the financial year, the Entity had spent R59 915 million (117%) incurring an over-expenditure of R8 565 million (17%).

The Entity reported that the overspending was due to projects that were undertaken to assist with the achievement of targets in the Tourism Grading Council Business unit.
5.4.2 Auditor-General’s report on South African Tourism Opinion • I have audited the financial statements of South African Tourism set out on pages 114 to 154, which comprise the statement of financial position as at 31 March 2023, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.
• In my opinion, the financial statements present fairly, in all material respects, the financial position of South African Tourism as at 31 March 2023, and its financial performance and cash flows for the year then ended in accordance with Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA).

Basis for opinion 31 35 • I conducted my audit in accordance with the International Standards on Auditing (ISAs).
My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report.

• I am independent of the entity in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa.
I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

• I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other matter I draw attention to the matter below.

My opinion is not modified in respect of this matter.

National Treasury Instruction No.

4 of 2022/2023: PFMA Compliance and Reporting Framework • On 23 December 2022 National Treasury issued Instruction No.
4: PFMA Compliance and Reporting Framework of 2022-23 in terms of section 76(1)(b), (e) and (f), 2(e) and (4)(a) and (c) of the PFMA, which came into effect on 3 January 2023.

The PFMA Compliance and Reporting Framework also addresses the disclosure of unauthorised expenditure, irregular expenditure and fruitless and wasteful expenditure.
Among the effects of this framework is that irregular and fruitless and wasteful expenditure incurred in previous financial years and not addressed is no longer disclosed in the disclosure notes of the annual financial statements, only the current year and prior year figures are disclosed in note 35 and 36 to the financial statements.
The movements in respect of irregular expenditure and fruitless and wasteful – are no longer disclosed in the notes to the annual financial statements of South African Tourism.

The disclosure of these movements (e.g., condoned, recoverable, removed, written off, under assessment, under determination and under investigation) are now required to be 32 36 included as part of other information in the annual report of the auditees.
I do not express an opinion on the disclosure of irregular expenditure and fruitless and wasteful expenditure in the annual report.
Responsibilities of the accounting authority for the financial statements • The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with standards of GRAP and the requirements of the PFMA and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
• In preparing the financial statements, the accounting authority is responsible for assessing the entity’s ability to continue as a going concern; disclosing, as applicable, matters relating to going concern; and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the auditor-general for the audit of the financial statements • My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; and to issue an auditor’s report that includes my opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

• A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
Report on the audit of the annual performance report 33 37 • In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, I must audit and report on the usefulness and reliability of the reported performance against predetermined objectives for selected programmes in the annual performance report.

The accounting authority is responsible for the preparation of the annual performance report.
• I selected the following programmes presented in the annual performance report for the year ended 31 March 2023 for auditing (Leisure Tourism Marketing, Business Events and Tourist Experience).

I selected programmes that measure the Entity’s performance on its primary mandated functions and that are of significant national, community or public interest.
• I evaluated the reported performance information for the selected programmes against the criteria developed from the performance management and reporting framework, as defined in the general notice.

When an annual performance report is prepared using these criteria, it provides useful and reliable information and insights to users on the entity’s planning and delivery of its mandate and objectives.
• I performed procedures to test whether: o o o o o the indicators used for planning and reporting on performance can be linked directly to the entity’s mandate and the achievement of its planned objectives, the indicators are well defined and verifiable to ensure that they are easy to understand and apply consistently and that I can confirm the methods and processes to be used for measuring achievements the targets can be linked directly to the achievement of the indicators and are specific, time bound and measurable to ensure that it is easy to understand what should be delivered and by when, the required level of performance as well as how performance will be evaluated, the indicators and targets reported on in the annual performance report are the same as what was committed to in the approved initial or revised planning documents, the reported performance information is presented in the annual performance report in the prescribed manner, there is adequate supporting evidence for the achievements reported and for the reasons provided for any over-or underachievement of targets.
34 38 • I performed the procedures for the purpose of reporting material findings only; and not to express an assurance opinion.

• I did not identify any material findings on the reported performance information of selected programmes.

Other matter • I draw attention to the matter below.

Achievement of planned targets • The annual performance report includes information on reported achievements against planned targets and provides explanations for over-and underachievement.
Report on compliance with legislation • In accordance with the PAA and the general notice issued in terms thereof, I must audit and report on compliance with applicable legislation relating to financial matters, financial management and other related matters.

The accounting authority is responsible for the entity’s compliance with legislation.
• I performed procedures to test compliance with selected requirements in key legislation in accordance with the findings engagement methodology of the Auditor-General of South Africa (AGSA).

This engagement is not an assurance engagement.

Accordingly, I do not express an assurance opinion or conclusion.
• Through an established AGSA process, I selected requirements in key legislation for compliance testing that are relevant to the financial and performance management of the entity, clear to allow consistent measurement and evaluation, while also sufficiently detailed and readily available to report in an understandable manner.

The selected legislative requirements are included in the annexure to this auditor’s report.
• The material findings on compliance with the selected legislative requirements, presented per compliance theme, are as follows: 35 39 Annual financial statements and annual report • The financial statements submitted for auditing were not fully prepared in accordance with the prescribed financial reporting framework as required by section 55(1)(b) of the PFMA.
Material misstatements in contingent liabilities, segment information, operating lease commitments and other disclosure items identified by the auditors in the submitted financial statements were corrected subsequently, resulting in the financial statements receiving an unqualified audit opinion.

Expenditure management • Effective and appropriate steps were not taken to prevent irregular expenditure as disclosed in note 36 to the annual financial statements, as required by section 51(1)(b)(ii) of the PFMA.
The majority of the irregular expenditure was caused by failure to follow a procurement process in terms of the Treasury transcripts to invite competitive bids.

• Prepayments were made before goods and services were received, in contravention of treasury regulation 31.1.2(c).

Other information in the annual report • The accounting authority is responsible for the other information included in the annual report.
The other information referred to does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported on in this auditor’s report.
• My opinion on the financial statements, the report on the audit of the annual performance report and the report on compliance with legislation, do not cover the other information included in the annual report and I do not express an audit opinion or any form of assurance conclusion on it.
• My responsibility is to read this other information and, in doing so, consider whether it is materially inconsistent with the financial statements and the selected programmes 36 40 presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

• If based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact.

I have nothing to report in this regard.


Internal control deficiencies • I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with applicable legislation; however, my objective was not to express any form of assurance on it.

• The matters reported below are limited to the significant internal control deficiencies that resulted in the material findings on compliance with legislation included in this report.
• Senior management did not address previously deficiencies relating to oversight of the financial reporting process, including detailed reviews of the financial statements by delegated officials, and related Internal controls.

• Senior management did not establish and implement sufficient procedures to review and monitor compliance with applicable legislation.

6.3 Key reported achievements The Department realised a number of achievements in the 2022/23 financial year.
The following is a list of selected key achievements observed by the Committee in its oversight work during the reporting period: 6.3.1 Achievements by the Department • The Department is currently operating four incubators namely, Emerging Tour Operators for 44 emerging tour operators, Food Services Incubator for 113 incubates, 37 41 Community-Based Tourism Incubator Pilot which involved eight community-based potential tourism projects and the Tourism Tech Incubator with 20 innovators.
• The Department has supported the implementation of 30 community-based Tourism Projects.
These were in Limpopo (Va Tsonga, Matsila Lodge, Phiphidi Waterfall, The Oaks Lodge, Ngove, Tisane, Nandoni Dam, Tshathogwe Game Farm, Mapate Recreational Social Tourism Facility, Mtititi Game Farm, Royal Khalanga Lodge) Free State (Qwa Qwa Guest House, Vredefort Dome, Monotsha) North West (Manyane Lodge, Lotlamoreng Dam, Sol Plaatjie Museum, Lehurutse Liberation Heritage Museum) Northern Cape (Platfontein Lodge, Kamiesburg, Mcgregor Museum), KwaZulu-Natal (Muzi Pan, Anton Lembede Museum eThekwini Municipality, Ama Hlubi Cultural Heritage), Eastern Cape (Maluti Hiking Trail, Mthonsi Lodge, Qatywa Lodge, Nyandeni Chalets, Western Thembuland), and Mpumalanga (Numbi Gate).
• During the 2022/23 financial year, the Department implemented Youth Skills Development Programmes targeting 2 500 retrenched and unemployed youth between the ages of 18-35 years.

The learners were also trained on the norms and standards for safe tourism operations in line with the skills development programmes that they attended.

• Training and placement of 2 517 retrenched and unemployed youth on various skills development programmes was conducted in the 2022/23 financial year.
This was against the targeted 2 500.

The youth were enrolled on the following programmes: Food and Beverage, Professional Cookery, Food Safety Quality Assurers, Wine Service Training and Hospitality Youth Training Programme (Fast Food).

• In the period under review, domestic tourism activations were done to support geographic spread in less visited provinces as well as off-peak travel.
The aim was to educate and create awareness among South Africans about the different tourism products and experiences they can partake in, which are close to where they reside and are affordable, and to educate them about the importance and benefits of travelling domestically.
The following activations were undertaken: 38 42 o Eastern Cape in the Mbizana area focusing on a group of young people who have tourism businesses and organised groups of hikers to introduce them to overnight hiking trails and the use of homestays as alternative accommodation.

o Free State with youth and community leaders from the Ficksburg area.

o Gauteng with tourism associations and young aspiring tourism business owners from Mogale City, Cullinan, Merafong and West Rand municipalities.
o North West with tourism school-going learners from Tsetse village just outside Mahikeng.

o Northern Cape (Petrusville area).

• Systems and process improvements were required to ensure efficient licensing of tour operators.

This was in order to enable new and support the continuation of existing tour operators’ activities which include improved turnaround times in the issuance of tour operator licenses.
To this end, an Interim National Public Transport Regulator (NPTR) Committee was appointed in April 2022, and the backlog on issuing of tour operator licenses was cleared.

The National Land Transport Information System was being developed and the National Land Transport Bill was being finalised.

Furthermore, the NPTR has engaged the Tourism Business Council of South Africa (TBCSA) to create awareness and assist tour operators in finalising their applications.
This achievement is not a direct responsibility of the Department of Tourism but falls in the purview of the Department of Transport.

This had a huge significance on addressing tour operator licence backlog.

6.3.2 Achievements by SA Tourism • Number of international tourist arrivals achieved (April 2022 - March 2023): 6 772 315.

• Number of domestic holiday trips achieved (April 2022 - March 2023): 9,9 million.

• Total tourism revenue: R178,4 billion.


• Total Tourist Foreign Direct Spend (TTFDS) achieved (April 2022 - March 2023): R74,6 billion .

• Total Domestic Direct Spend (TDDS): R103,8 billion achieved (April 2022 - March 2023).

• Number of business events hosted in South Africa: 61 (April 2022 - March 2023).

39 43 • Number of bid submissions: 95 bid submissions.
The 95 bids submitted have a combined estimated economic value of R1.2 billion and can potentially attract 49 232 international and regional delegates to South Africa between 2022 and 2029.

These secured business pieces will contribute R338 million to South Africa’s economy between 2022 and 2025 and attract 16 505 international and regional delegates.
In addition, the SANCB invested R19,2 million in bid submissions through its Bid Support Programme to attract business events linked with the National Government’s development priorities.

• Number of accommodation establishments graded (April 2022 - March 2023): 4 959.

• Number of graded rooms (April 2022 - March 2023): 122 963.

7.
7.

OBSERVATIONS The Committee observations are presented for both the Department of Tourism and South African Tourism as follows: 7.1 Observations in relation to the Department 7.1.1 Delays in policy and legislative review processes The Committee acknowledges that the Department has started the policy review process, which is at an advanced stage.

It is noted that on 30 August 2023, the Minister gazetted the Green Paper on the Development and Promotion of Tourism in South Africa.
The public comments are solicited for 60 days from the date of publication.
The elements include but are not limited to: • Implementation of a research-based tourism safety response programme in partnership with relevant agencies; • Develop and regularly review tourism crisis management framework to enable a response to crises; • Implementation of Tourism Broad-Based Black Economic Empowerment (BBBEE) Codes and strengthening mechanism for access to finance; • Facilitation of ease of access to the destination, especially as it relates to immigration and transport.
40 44 • Recommitting the sector to the responsible tourism agenda • Regulation of short-term rental accommodation to ensure policy certainty.

The process has been delayed for several years.

The legislative review process hinges on the finalisation of the policy review process.

The Committee had wanted to institute a legislative review process with the tenure of the 5th Parliament.

However, the delay in the policy review process has rendered this legislative function of the Committee unattainable.
It is notable that the grading system is not discernably prioritised in the policy review process.

The Committee has recommended that the grading system be made mandatory but free of charge.

The Committee is also of the view that the Tourism Grading Council of South Africa should be dissociated from SA Tourism.
This is intended to ensure that all tourism establishments in the country are graded, including big international hotel groups and independent hotels that opt out of the current voluntary grading system.

7.1.2 Improvement in audit outcomes The Committee commends the Department for obtaining an unqualified audit opinion with findings on non-compliance with legislation in the 2022/23 financial year.
The Committee noted that there is no improvement in the audit findings given that the Department had received a financially unqualified opinion with findings on compliance with key legislation in the previous financial year.

However, the Department is commended for submitting annual financial statements that were free from material misstatements.

This was an improvement from the prior year as the Department had made material adjustments to achieve an unqualified audit opinion.
The findings raised by the Auditor-general relate to: • Regression noted in the area of compliance with applicable legislation.

Instances of non-compliance with supply chain management legislation were identified in relation to quotations procured on behalf of the Department by the Development Bank of Southern Africa (DBSA).
• Some of the quotations were awarded by an implementing agent to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by Treasury Regulation 16A9.1(d).

41 45 • Senior management did not establish and implement sufficient procedures to review or monitor compliance with supply chain management prescripts and internal controls when procuring goods and services through an implementing agent.
7.1.3 Expenditure The Department’s adjusted appropriation for 2022/23 amounted to R2 502.4 billion.

This was an increase from the initial main appropriation of R2 491.6 billion.

At the end of the financial year, the Department spent R2 473.7 billion or 98.9 percent of the available budget of R2 502.4 billion.

This is a commendable expenditure pattern by the Department.
7.1.4 Achievement of targets At the end of the financial year, the Department achieved 38 (88.37%) of the 43 targets identified for the year.

The Department reported that, while not achieved, it had completed significant work towards five (11.63%) targets.

The high expenditure without achieving all the targets has become an established pattern over the past financial years.
However, if the performance of the Department is viewed only from a service delivery perspective, without including Programme 1 which services the internal organisational operations, the Department achieved 96 percent of its set targets.

The 96 percent achievement of service delivery targets is commendable.

7.1.5 Under expenditure The Department incurred an under expenditure of R28.6 million which translates to 1.1 per cent underspending in the 2022/23 financial year.
The underspending was incurred as follows: • Programme 1: Administration (R12,2 million or 3%): Most of the underspending lies within the Compensation of Employees due to staff turnover and the slow filling of posts.

• Programme 2: Tourism Research, Policy and International Relations (R9,8 million or 0.7%): The bulk of this underspending lies within the Compensation of Employees due to staff turnover and the slow filling of posts.
The slight underspending on Goods and Services is mainly due to international meetings being held virtually, resulting in unspent funds linked to travel and subsistence.

A further underspending was realised 42 46 under transfers and subsidies for the United Nations World Tourism Organisation (UNWTO) contributions due to foreign exchange rate fluctuations.
• Programme 3: Destination Development (R4,9 million or 1.2%): The bulk of this underspending lies within the Compensation of Employees due to staff turnover and the slow filling of posts.

The slight underspending on Goods and Services is due to unspent funds within travel and subsistence due to the virtual attendance of meetings with stakeholders.
• Programme 4: Tourism Sector Support Services (R1,6 million or 0.5%): The bulk of this underspending lies within the Compensation of Employees due to staff turnover and the slow filling of posts.

The slight underspending on Goods and Services is due to unspent funds within travel and subsistence due to the virtual attendance of meetings with stakeholders.
7.1.6 Transfer payments In the year under review the Department transferred funds to various government and private agencies as follows: • South African Tourism - R1.3 billion • Tourism Equity Fund - R90.4 million • United Nations World Tourism Organisation - R2.5 million • Federated Hospitality Association of Southern Africa (Fedhasa) - R443 000 • Bursaries (non-employee) - R3.8 million • Industrial Development Corporation – R130 million • CATHSSETA – R181 000 7.1.7 Fruitless and wasteful expenditure The fruitless and wasteful expenditure incurred for the 2022/23 financial year amounts to R36 thousand.
There were 29 new confirmed cases.

The main reasons were cancellations/amendments and no-shows for travel and accommodation services.

R22 thousand was recovered and R13 thousand was written off.
43 47 7.1.8 Irregular expenditure The Department incurred several instances of irregular expenditure as follows: • An irregular expenditure of R1.43 million due to a security contract awarded to the second-highest-scoring bidder; • Another instance of R3.27 million irregular expenditure was incurred due to compensation for employees whose employment contracts were extended in contravention of Public Service Regulations.
However, the Committee noted that this was due to compensation of staff that was employed by the Executive and not the accounting officer of the Department.

• It was noted that the irregular expenditure of R4.3 million for the Department was condoned subsequent to year-end and R3.3 million was still being investigated.
The Committee was, however, concerned that these instances of irregular expenditure were not disclosed by the Department but only identified by the Committee in the report of the Auditor- General.

The Department stated in its Annual Report that there was no irregular expenditure in the 2022/23 financial year.

This may be construed as misleading information.

The Department should have disclosed the irregular expenditure incurred in line with the provisions of the National Treasury Instruction No.
4: PFMA Compliance and Reporting Framework of 2022-23 in terms of section 76(1)(b), (e) and (f), 2(e) and (4)(a) and (c) of the PFMA, which came into effect on 3 January 2023.

The Department is urged to disclose all pertinent information in the subsequent years.
7.1.9 Procurement and contract management and poor contract management The Committee noted that due to flouting procurement and contract management, instances of non-compliance with supply chain management legislation were identified in relation to quotations procured on behalf of the Department by the Development Bank of Southern Africa (DBSA).

The tax compliance status verification was not performed at the time of award, resulting in non-compliance with National Treasury Instruction No.

09 of 2017/2018.
09 of 2017/2018.

This was due to lack of oversight and monitoring of compliance with the Supply Chaim Management (SCM) prescripts by the DBSA.

However, it was noted that this was done by the implementing 44 48 agent outside the internal procurement processes of the Department.

The Department had cleared all its previous findings on the matter.

7.1.10 Claims against the Department The claims against the Department amount to R7.3 million.
These claims relate to the breach of contract; payment of retention fees and administration costs; unfair dismissal and accident damages.

The Department reported in its Annual Report that due to the sensitivity of claims, they are currently within the legal domain, and no indication can be provided on the possible outflow or reimbursement.
7.1.11 Gifts and Donations Received in kind from Non-Related Parties The Committee noted that the Department received sponsorship from Seeza Tourism Growth Network for three officials to attend the International Federation for Information Technology and Travel and Tourism (IFITT) ENTER 23 conference.

The Department did not receive any other gifts or donations in kind from non-related parties in the 2022/23 financial year.
7.1.12 Human resources It was noted that as at 31 March 2023, the Departmental post establishment was at 521 with 480 positions filled and 51 positions vacant translating to a 7.9 percent vacancy rate.

The Committee noted that 2022/2023 was the first year where a vacancy rate below 10 percent was achieved.

As reported, the Department implemented a reprioritisation system for positions based on available funds resulting from terminations of other positions.
The Department has consistently performed above 4 percent on employment of People with Disabilities which is 2 percent above the national target.

In all, 40 employees were appointed to the Department while 31 employees exited the Department.

There were 10 resignations at 32.2 percent, five transfers out of the Department at 16.1 percent, five retirements at 16.1 percent and two terminations on account of death at 6.4 percent.
45 49 7.1.14 Implementation of tourism infrastructure projects The Committee noted that the Department continued to implement infrastructure projects through the services of the Development Bank of Southern Africa.

The DBSA was appointed by the Department following a Memorandum of Agreement (MoA) which the DBSA signed with the Department on 20 November 2020.

The MoA expires on 30 November 2023 and there is a need to review it as the last project is due for completion in 2025.
In its presentation to the Committee, DBSA had indicated that they were implementing 70 projects in total.

There were 47 active projects, with a total of 30 projects due for completion by September.

By December 2023, a total of 11 were reported to be due for completion, and 6 more projects will be completed after December 2023.

All 47 projects will be delivered by March 2024.


The Committee is satisfied that the DBSA has improved infrastructure project delivery as confirmed by the Auditor-General in the three projects that were selected for the audit, namely, Western Tembuland Cultural Village, Maluti hiking and horse trail, and QwaQwa guest house.

The general sentiment of the Auditor-General which provides reassurance to the Committee is that: • Overall quality of projects is acceptable with no defects identified.
• Overall quality of project management for DBSA-appointed contractor is also good.

• Projects were still under construction at the time of the site visit and completion works and were due for completion on time.

7.1.15 Removing barriers to tourism growth The Committee acknowledges that efforts are being made by the Department, in partnership with other sector departments, to remove barriers to tourism development and promotion for the country.
Some of the barriers remain the introduction of e-visas, tourist safety, airlift capacity and quicker turnaround times in the processing of tour operator licenses.

Notable strides have been made in some of them.

On the E-visa system, it is noted that it has been active in 14 countries since February 2022.

Once the online visa system has been stabilised for the 14 countries, the aim is to make it available to a larger number of nationalities.
The South African government has announced the removal of visa requirements for Kenyans travelling to the country for up to 90 days.

The 46 50 Committee continues to call for expediting the Remote Work Visa; special visa for tourism; and granting visa waivers to more countries with potential as markets for South Africa.

On facilitating the issuance of tour operating licenses, systems and process improvements were required to ensure the efficient licensing of tour operators.
This was in order to enable new and support continuation of existing tour operators’ activities which include improved turnaround times in the issuance of tour operator licenses.

It is also commendable that the National Public Transport Regulator has engaged the Tourism Business Council of South Africa (TBCSA) to create awareness and assist tour operators in finalising their applications.
On tourist safety measures, the Committee has noted the efforts of the Minister in facilitating the activities of the National Tourism Safety Forums (NTSF) responsible for the coordination and integration of safety response mechanisms for tourists in distress.
It is noted that the key objectives of the Tourism Action Plan are noted to: • Increase visibility at identified tourist attractions and sites; • Train Tourism Monitors to ensure that they are safe when executing duties; and • Facilitate integrated implementation and support of safety programmes.

The Committee also notes the six tourist safety awareness campaign sessions that were conducted for the continuous training of Tourism Monitors across the country.
7.1.16 Enhancing domestic tourism The Committee reiterates that domestic tourism remains underdeveloped in the country.

Several recommendations have been made previously to the Department and SA Tourism to prioritise domestic tourism.

The Committee continues to call for a more and sharper focus on the development and promotion of domestic tourism in South Africa.

This is necessary to make the sector competitive and self-reliant like in other mature tourist destinations in the world.
7.1.17 Transformation The Committee notes that transformation remains a major challenge in the tourism industry.

The Department had a setback when the Tourism Equity Fund was interdicted.

The Minister reported to the Committee that an out of court settlement had been reached with the litigants.

The Committee is awaiting feedback on the way forward on the implementation of the Tourism Equity Fund.
47 51 7.1.18 Villages, Townships and Small Dorpies (VTSDs) The Committee notes efforts to invest and develop VTSDs through the Department’s infrastructure projects, the budget resort network initiative, precinct development in townships, community-based projects in rural provinces and business support offered to SMMEs in both rural and peri-urban areas.
These initiatives are significant towards the development of an inclusive tourism economy, that ensures product development, economic growth, and employment creation in the more remote areas of the country.

7.1.19 Timely submission of reports The Committee notes that the Department continues to delay submitting requested reports in a timely manner.

This includes both reports published by the Department and written submissions requested by the Committee on issues raised during quarterly oversight meetings.
The Committee requests the Department to adhere to agreed upon timelines, as these deadlines are on record, for the submission of requested reports and written feedback on clarity seeking questions raised by the Committee; these all form part of oversight.

7.2 Observations in relation to South African Tourism 7.2.1 Adverse audit findings The Committee is concerned that South African Tourism received an unqualified audit opinion with findings on compliance with key legislation in the 2022/23 financial year.
This means that the audit outcomes remained unchanged from the 2021/22 financial year, with serious recurring findings.

The Entity failed to address the findings made by the Auditor- General and the Committee in the previous audit period.

This points to failure in governance and incapacity in delivering effective operations at the Entity.
7.2.2 Financial statements The financial statements submitted by SA Tourism contained multiple misstatements relating to operating lease liabilities, contingent liabilities, segment information and other inconsistencies between the amounts reported in the annual financial statements and the amounts in the notes.
Senior management did not address previous deficiencies relating to 48 52 oversight of the financial reporting process, including detailed reviews of the financial statements by delegated officials and related Internal controls.

The Committee views this as a consequence of the vacant position of the Chief Financial Officer.

7.2.3 Expenditure SA Tourism had a total budget of R1 455.6 billion in the 2022/23 financial year.

The Entity spent a total of R1 560.5 billion in the same period.
This is an over expenditure of R104.

9 million.

The cause for concern is that the Entity overspent by R105 million whilst only achieving just above 50 percent of the set targets.

7.2.4 Achievement of targets It was noted that the Auditor-General reported that SA Tourism achieved 54 percent of set targets but overspent on its budget by R105 million.
This is worsened by the fact that the Entity had a surplus in the previous year and had requested from the National Treasury to keep that profit but overspent on its budget.

The main targets not achieved included implementing the global tourism brand campaign plan, the integrated destination brand and marketing strategy, and the elements of the global advocacy programme.

The targets not met form the core of SA Tourism’s mandate.
Failure to achieve these targets is equivalent to the Entity failing in its mandate.

However, the Entity reported that it achieved 20 of its 33 planned annual targets, as outlined in the 2022/23 APP, thus achieving 61 percent performance.
For seven of the 13 annual targets that were not achieved, the Entity said it should be noted that these targets were delivered but are recorded as underperformance due to non-compliance with the Technical Indicator Descriptions (TIDs) for each of these targets and indicators.

This is a reporting discrepancy when considering the findings of the Auditor-General.
7.2.5 Irregular expenditure It was observed that the Entity failed to prevent irregular expenditure, and this increased from R6.8 million in the prior year to R9.9 million in 2022/23.

This was due to the purchase of the DOME structure without following the competitive bidding process.

An amount of R51.9 49 53 million is being investigated and awaiting condonement.

This is tantamount to uncompetitive and unfair procurement processes, as expressed by the Auditor-General.
7.2.6 Payment prior to goods and services being rendered The Committee observed that the Entity had another material finding relating to instances where prepayments of R17.6 million were made for the Summer Campaign even though the contract did not make provision for prepayments in contravention of treasury regulation 31 1 2 (c).

The Committee continues to call for the strengthening of internal financial controls at the Entity.
7.2.7 Fruitless and wasteful expenditure It was noted that the Entity continued to incur fruitless and wasteful expenditure at R1,23 million.

7.2.8 Going concern The Committee is concerned about the status of the Entity as a going concern, whether the Entity is financially stable and can operate with the expectation of indefinite existence.

This is due to the reported information that SA Tourism ended the 2022/23 financial year in deficit, with expenditure exceeding revenue.
The net cash outflows for the year from operating activities were at R183 million.

7.2.9 Overspending The entity overspent on its budget by R105 million.

It was noted that the Entity had a surplus (profit) in the previous year and had requested from the National Treasury to keep that profit.

Despite these profits, the Entity still overspent on its budget in 2022/23 financial year.
7.2.10 Governance In line with the oversight work of the Committee, the Auditor-General found that SA Tourism did not have a Board of Directors between June 2022 and August 2022 which created a vacuum from an oversight perspective.

There were multiple changes in terms of the composition of the Board, starting with an Interim Board appointed in September 2022 50 54 followed by the Board being appointed in October 2022.
The multiple changes to the Board exacerbated the instability across oversight functionaries for the Entity.

Currently, the oversight over the entity is being exercised by the Board appointed in April 2023.

The Committee did not concur with the composition of the Board and recommended to the Minister that the number be increased from 3 to five.

However, this was never acceded to by the Minister.
In line with the consistent recommendation of the Committee, the Auditor-General recommended that the executive authority appoint a Board so that key vacant positions in the entity can be filled.

7.2.11 Developments since 1 April 2023 The Committee observed that since 1 April 2023, governance challenges have persisted at SA Tourism.

This does not auger well for the next audit period.
The challenges since the beginning of the current financial year have been as follows: • Eight of the 12 South African Tourism Board members resigned between 6 and 8 April 2023, after which the Board was dissolved on 21 April 2023.

• An Interim Board came into effect on 21April 2023.

• The former Acting Chief Executive Officer (CEO), who was also the Chief Marketing Officer (CMO), resigned on 5 May 2023.

• The Chief Operations Officer (COO) was appointed to act as the CEO with effect from 6 May 2023.
The Committee has raised concerns about the current arrangement.

• The Chief Quality Assurance Officer (CQAO) was appointed to act as the CMO with effect from 7 May 2023.

• The acting Chief Executive Officer was removed from the position based on the investigation triggered by the whistle blower.

These developments in the Entity demonstrate that governance challenges continue to confront the institution.
If the current situation continues unabated, the Entity is bound to sink into more governance challenges.

There is, however, a glimpse of hope that the situation may improve as the Minister has initiated the process of appointing a new Board.

The current Board has also started the process of appointing the executives to fill the strategic positions 51 55 in the Entity.

The Committee continues to monitor developments in this regard with keen interest.
7.2.12 Human Resources matters The instability at a Board level during the 2022/23 financial year resulted in delays in filling key vacant positions.

Most of the senior management positions within SAT were occupied by acting incumbents at year-end, including the positions of Chief Executive Officer, Chief Financial Officer, Chief Convention Bureau Officer, Chief Marketing Officer, Head of Internal Audit, and Company Secretary.
The former Acting Chief Executive Officer and Chief Marketing Officer resigned in May 2023.

The Committee has raised issues with the current untenable arrangement whereby the Acting CEO is also a Chief Financial Officer (CFO), which makes her a referee and a player.

The major concern is with the financial delegations of the CFO as a CEO in that there will be no clear demarcation if the Acting CEO who is the CFO takes financial decisions with organisational implications.
The Committee has learned that the Board has initiated the process of filing the executive positions at the Entity.

A speedy conclusion of the process will alleviate staffing challenges that have collapsed operations at the Entity, albeit the Committee questioning whether it is in the purview of the current Board to fill the vacant positions, or this should wait for the new Board.
7.2.13 Investigations conducted by SA Tourism The Committee noted that the following investigations/reviews were executed and completed by internal audit during the period under review with some still in progress: • Unethical conduct – irregular appointment (in Progress).
• Unethical conduct - concerns pertaining to the recruitment processes of leadership (in Progress) • Corruption – alleged corruption pertaining to a bribe • Corruption – payments made to supplier without services rendered (in Progress) • SCM probity assessments • Human capital leave pay-out reviews • Leave balances accuracy review 52 56 The Committee is interested in the nature of these investigations, the sources of complaints and the outcomes for each of them.
The Committee is also interested in the steps that were taken by the Entity to effect the outcomes of the investigations.
7.2.14 Need for urgent improvement The Committee noted that in its own assessment, the Entity acknowledged that based on the results of the audit engagements, consultancy services rendered, and reports considered on governance, risk management and internal controls, both financial and non-financial, the overall Internal Audit opinion is that, in all significant respects, South African Tourism’s control environment requires improvement.
The Committee is interested in what the Minister and the Board are going to do in ensuring that the Entity is stabilised, and all identified organisational deficiencies are addressed.

7.2.15 Dysfunctional South African Tourism Board The Committee is concerned about the continued untenable matters pertaining to the Board of SA Tourism which it deems the major source of all the challenges at the Entity.
The Committee acknowledges that upon her appointment, the Minister on 6 April 2023 wrote to the Chairperson of the SAT Board, requesting reasons why she should not dissolve the Board in terms of Section 16(3) of the Tourism Act, 3 of 2014.

In it, she indicated that she referred to the conduct of the Board in the Tottenham Hotspurs football club transaction and the composition of the Board in terms of section 13 of the Tourism Act.
The Minister further referenced the contents of a letter dated 16 March 2023, received from the acting CEO of South African Tourism, wherein the acting CEO made serious allegations against the Board and some of its members and consequently requested her to dissolve the Board.

The Board had until 18 April 2023 to respond to the Minister’s letter.

She received no correspondence as to why she should not dissolve the Board.
Subsequently eight (8) Board members out of eleven (11), including the Chairperson, resigned.

This left the Board unable to quorate.

On Friday 21 April 2023, in terms of Section 16(3) of the Tourism Act and by way of a Government Gazette, she formally dissolved the Board.

At the same time, she appointed three people to oversee the Board until such time that the full Board is appointed.

The three Board 53 57 members are Mr. Tim Harris, Ms. Kholeka Zama, and Mr. Zwelibanzi Mntambo.
The appointment gives the Board the full powers conferred by the Tourism Act on the Board, which is implicit in section 16(3)(b), which provides that the appointees may manage the affairs of the Board.

The Committee was opposed to the appointment of a three-member Board and recommended an additional two members, a recommendation that was not positively considered by the Minister.

This has caused continuous uproar in the questionable work and conduct of the three-member Board.
However, the Committee acknowledges that the Miniter was within her rights to appoint the current Board.

7.2.16 Proposed Tottenham Hotspur FC Sponsorship Deal The Committee commends the Minister on her swift action when the Committee raised concerns that SA Tourism intended to sponsor Tottenham Hotspur Football club based in the United Kingdom in tune of R910,997,814.75.
The Committee acknowledges that on 22 March 2023, the Minister wrote to the Chairperson of the SA Tourism Board, referring to the Board resolution, dated 31 January 2023, to enter a partnership deal with the Tottenham Hotspur Football Club.

After a series of interventions with the Board, the Minister announced on 30 March 2023 in a media statement that the proposed deal had been stopped.

8.
8.

RECOMMENDATIONS The Committee makes recommendations to both the Minister of Finance and Minister of Tourism as follows: 8.1 Recommendations to the Minister of Finance: It is recommended that the Minister of Finance: 8.1.1 Conducts a cost-benefit analysis of merging SA Tourism and Brand SA and provide some advice on the appropriate trajectory to be taken by government in this regard.
There is a duplication of functions between South African Tourism and Brand SA and the merger of the two entities will result in them being more impactful on issues around branding, marketing, and investment in destination South Africa.

Brand SA reporting to the Department of Tourism will also ensure a more efficient use of financial resources.
54 58 8.1.2 Provides ring-fenced budget for developing and promoting domestic tourism in South Africa to assist the country to be on par with other mature destinations.

8.2 Recommendations to the Minister of Tourism It is recommended that the Minister of Tourism: Transversal recommendations for the Department and SA Tourism 8.2.1 Ensures that the Department and SA Tourism develop Audit Action Plans and report implementation progress to the Committee on a quarterly basis.
8.2.2 Ensures that financial controls are strengthened at both the Department and SA Tourism to improve expenditure management with the intention to eliminate irregular expenditure and fruitless and wasteful expenditure.

8.2.3 Ensures that internal controls, including internal audit functions are strengthened at both the Department and SA Tourism.

8.2.4 Ensures that the Department and SA Tourism enhance internal controls to guarantee compliance with legislation on procurement and contract management.
8.2.5 Ensures that the Department and SA Tourism implement appropriate preventative controls to prevent instances of non-compliance with supply chain management prescripts and administer appropriate consequence management.

8.2.6 Closely monitors the achievement of targets at the Department and SA Tourism and implement strategies for catching up on targets in which both organisations are lagging behind on quarterly basis.
8.2.7 Ensures that the all the key vacant positions are filled up at the Department and SA Tourism.

8.2.8 Engages the MECs of provinces to determine a set of priorities critical in developing and sustaining tourism in South Africa, provide joint funding using the intergovernmental relations Act through signing a Memorandum of Agreement of implementing the identified priorities and monitor implementation thereof.
55 59 8.2.9 Engages other sector departments that provide services which impact on tourism to provide an enabling environment that eliminates barriers to tourism growth, including ease of travel, with specific attention to E-visa and remote work visa regime; safety and security for tourists; facilitating operating licenses; funding tourism SMMEs; developing by-laws at local level; ensuring energy supply; maintaining the road network in the country; providing tourism signage; and other related services.
8.2.10 Finalises the tourism policy review process.

8.2.11 Finalises the process of the appointment of the Board of SA Tourism by the end of November 2023.

8.2.12 Significantly improves oversight over SA Tourism to improve governance, financial management and operations.

8.2.13 Ensure that there is continuous improvement in the credibility and quality of submitted annual performance reports.
8.2.14 Improves the working relationship with the Committee for the common purpose of developing and sustaining the tourism sector in South Africa.

Recommendation specific to the Department of Tourism: 8.2.15 Ensures that the Development Bank of Southern Africa strengthens their supply chain management (SCM) controls to prevent instances of non-compliance with SCM prescripts.
8.2.16 Improve implementation of tourism infrastructure projects through involvement of all stakeholders at a national, provincial and local level, with the emphasis on the involvement of local communities and beneficiaries thereof.

56 60 8.2.17 Submit both requested reports and agreed-upon written submissions to the Committee timeously.
The Committee requests the Department to adhere to agreed-upon timelines, as these deadlines are on record, for the submission of requested reports and written feedback on clarity-seeking questions raised by the Committee during quarterly meetings.

8.2.18 Ensure that all capacity building programmes are implemented as planned in the stipulated financial year across all provinces.

The Tourism Monitors programme was not implemented in the Limpopo province as planned in the 2022/23 financial year.
Recommendations specific to SA Tourism: 8.2.19 Impress on the Board of SA Tourism to improve the quality of submitted annual financial statements by ensuring that the annual financial statements submitted for auditing are accurate and prepared in accordance with the financial reporting framework.

8.2.20 Encourages the Board of South African Tourism to fully embrace the opportunities offered by technology in conducting their legislative mandate in the operations of the entity.
8.2.21 Encourages the Entity to work closely with the Tourism Business Council of South Africa and other interested and affected parties in bolstering current efforts and introducing more effective strategies to develop and grow domestic tourism.

8.2.22 Engages the Minister of Home Affairs in exploring introducing tourism visas and granting visa waiver for more countries with potential as source markets for South Africa.

9.
9.

CONCLUSION The Committee is generally satisfied that the overall audit outcome for the tourism portfolio has remained unchanged with both the Department and SA Tourism receiving financially unqualified opinions with findings on compliance with key legislation.

The Committee is even more satisfied with the performance of the Department as it achieved 96 percent of its service delivery targets set for the period under review.
The issue of a material finding on procurement 57 61 and contract management incurred through the Development Bank of Southern Africa needs urgent attention to prevent recurrence.

The performance of SA Tourism is, however, of great concern as the Entity had material findings on the annual financial statements and expenditure management.

The Minister is urged to pay special attention to oversight of SA Tourism.
The Entity has proved to be remiss on governance at a Board level, internal controls, financial management, and human resources management.

The Committee considers SA Tourism as an almost dysfunctional Entity that requires special attention.

Intrinsically, the Committee will continue conducting robust oversight over the tourism portfolio, with a particular focus on SA Tourism.
The issues raised in the report point to a need for a change in the mindset and the way the Department and SA Tourism have been dispensing their mandates.

This calls for an intensive and more focused approach to maximising partnerships and intergovernmental relations to unblock barriers to tourism growth.
It is becoming increasingly glaring that the Department and SA Tourism cannot fulfil their mandate without sound partnerships and carefully crafted implementation strategies crystalised through the intergovernmental relations framework.

The Minister needs to work closely with the provincial government counterparts to ensure that tourism development and promotion are adequately addressed at all levels of government in line with the constitutional obligations as a concurrent function.
Report to be considered.

58 62 COMMITTEE REPORT REPORT OF THE PORTFOLIO COMMITTEE ON AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT ON THE INTERNATIONAL TREATY ON PLANT GENETIC RESOURCES FOR FOOD AND AGRICULTURE (ITPGRFA), DATED 20 OCTOBER 2023.

1.

Background The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) was tabled in Parliament in terms of Section 231(2) of the Constitution of the Republic of South Africa (Act No.
108 of 1996) on 24 February 2023 (see ATC, 24 February 2023) and was referred to the Portfolio Committee on Agriculture, Land Reform and Rural Development on 28 February 2023 (see ATC, 28 February 2023) for consideration and report.
The objectives of the Treaty, which was first adopted by the Food and Agriculture Organisation of the United Nations (FAO) in November 2001, are: • conservation and sustainable use of plant genetic resources for food and agriculture; • fair and equitable sharing of the benefits arising out of their use, in harmony with the Convention on Biological Diversity, for sustainable agriculture and food security; • recognise Farmers’ Rights through the contribution that the local and indigenous communities and farmers have made and will continue to make for the conservation and development of plant genetic resources, which constitute the basis of food and agriculture; and • recognise Farmers’ Rights to participate in making decisions, at the national level, on matters related to the conservation and sustainable use of plant genetic 1 63 resources for food and agriculture; including the rights of farmers to save, use, exchange and sell farm-saved seed.
These objectives will be attained by closely linking the Treaty, through the FAO, to the United Nations Convention on Biological Diversity, to which South Africa is already a signatory.

2.

Committee process and recommendation The Portfolio Committee received a briefing on the Treaty from the Department of Agriculture, Land Reform and Rural Development on Tuesday, 17 October 2023.
Having considered and deliberated on the International Treaty on Plant Genetic Resources for Food and Agriculture, on Tuesday, 17 and Friday, 20 October 2023, the Portfolio Committee recommends that Parliament approves the accession to the said International Treaty.

Report to be considered.

2 64 3.
2 64 3.

Report of the Portfolio Committee on Women, Youth and Persons with Disabilities on the Draft Notice on the Determination of Remuneration of Independent Constitutional Institutions, dated 20 October 2023 The Portfolio Committee on Women, Youth and Persons with Disabilities Affairs, having considered the draft notice of the President’s determination of the salaries and allowances of members of various institutions, including the Commission for Gender Equality (CGE), reports as follows: 1.
BACKGROUND 1.

A letter, dated 08 August 2023, was received from the President of the Republic, requesting the National Assembly to consider the draft notice of determination of the salaries and allowances of members of various institutions, including the Commission for Gender Equality in terms of the Determination of Remuneration of Office-Bearers of Independent Constitutional Institutions Laws Amendment Act, 2014 (Act No.

22 of 2014) for 2022/23, usually required by the end of the financial year.

2.
2.

On 18 August 2023, the matter was referred to the Committee for consideration and report as per the ATC 18 July 2023.

3.
3.

Section 219 (5) of the Constitution of the Republic of South Africa, 1996, provides that national legislation must establish frameworks for determining the salaries, allowances and benefits of judges, the Public Protector, the Auditor-General, and members of any commission provided for in the Constitution, including the Commission for Gender Equality referred to in section 192 of the Constitution.

4.
4.

The Determination of Remuneration of Office-Bearers of Independent Constitutional Institutions Laws Amendment Act, 2014 (Act No.

22 of 2014), which came into operation on 1 April 2019, creates the necessary framework to determine the salaries of office-bearers of Chapter 9 institutions mentioned in the Constitution.

5.
5.

Section 8 (1) of the Commission for Gender Equality Act 39 of 1996 provides that the full-time and part-time members of the Commission on Gender Equality are entitled to an annual salaries and such allowances or benefits as determined by the President from time to time by notice in the Gazette and approved by the National Assembly.

1 65 6.
1 65 6.

The President received the annual salary recommendations for the Public Office-Bearers of the Independent Constitutional Institutions from the Independent Commission for the Remuneration of Public Office Bearers.

7.

The Commission having considered, amongst others, the State's wage bill and the impact of Public Office Bearers' salary increment on the fiscus of the country recommended a 3% salary increment for all public office bearers for the financial year 2022/23.

8.
8.

The President reports that he has taken into consideration the economic challenges the country is experiencing, as well as the current fiscal constraints and thus intended to make the determination on the matter, with effect from 01 April 2022, as follows: • Chairperson: R1 219 734 • Deputy Chairperson: R1 044 097 • Commissioners: R 971 591 • Part-time members: R3 855 per day 2.
COMMITTEE CONSIDERATION The Portfolio Committee on Women, Youth and Persons with Disabilities considered, supported and approved the intended Determination by the President of the Republic, in relation to the members of the Commission for Gender Equality given the fiscal constraints.

As such, the Committee recommends that the National Assembly approve the notice determining the remuneration of the Commissioners of the Commission for Gender Equality.

Report to be considered.

2 66 4.


BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON WOMEN, YOUTH AND PERSONS WITH DISABILITIES, DATED 20 OCTOBER 2023.
The Portfolio Committee on Women, Youth and Persons with Disabilities, having considered the annual and financial performance of the Department of Women, Youth and Persons with Disabilities on 10 October 2023, and the Commission for Gender Equality on 13 October 2023 and the National Youth Development Agency on 17 October 2023, reports as follows: 1.
Introduction The Portfolio Committee on Women, Youth and Persons with Disabilities (hereafter the Committee) as it approaches the end of the 6th Parliamentary term considers this Budget Review and Recommendation’s Report (BRRR) for 2023 a particularly important one as it begins to reflect on the term that has past and what still needs to be done by the entities it oversees.
To this end, the Committee has assessed each of the annual reports for the Department of Women, Youth and Persons with Disabilities (hereafter the Department), the Commission for Gender Equality (CGE) and the National Youth Development Agency (NYDA) in light of each of the respective Strategic Plans and prior BRRRs.

The financial year 2022/23 saw the repeal of the transitionary COVID-19 measures by the Minister of Health Joseph Phaahla.
The wearing of masks was no longer mandatory so to were the limitations on gatherings and international travel.

All positive signs that the country had come through surviving a pandemic.

Notwithstanding that, unemployment remained high in the country, the economy was still in recovery and the scourge of gender-based violence continued unabated.
It was also a financial year in which the country experienced several natural disasters such as the floods in KwaZulu-Natal that were considered to be the most catastrophic yet recorded for the province.

The 26th June 2022 was another sad day in South Africa, the Enyobeni Tavern tragedy in which 21 young people died.
Currently, women constitute more than half of the South African population and the youth unemployment rate is the highest it has even been since the advent of democracy despite somewhat of an improvement.

Gender-based violence and femicide remains as the silent pandemic.

It is within this context that the Budget Review and Recommendations Report (BRRR) 2023 is compiled.
The review and assessment of the Annual Reports for the Department of Women, Youth and Persons with Disabilities (hereafter referred to as the 67 Department), the Commission for Gender Equality (CGE) and the National Youth Development Agency (NYDA) has this been considered against that backdrop.

With a change in administration, the Department has seen the appointment of a new minister and deputy minister.
Another key significant change for the Department was the change to its mandate as it became what it refers to as a regulator.

Moreover, by the introduction of the Annual Performance Plan 2022/23 the Department had also decreased its programmes from five to four with the merger of disability and youth into one.
On the 10th October 2023, the Committee was briefed by the Department on its Annual Report for 2022/23, as well as by the Auditor General of South Africa (AGSA) and the Audit and Risk Committee (ARC).

The Commission for Gender Equality (CGE) briefed the Committee on the 13th October 2023 and the National Youth Development Agency (NYDA) on the 17th October 2023 along with their respective ARC’s.

2.

Strategic Overview 2.1.


Mandate and Purpose of the Department The Department of Women, Youth and Persons with Disabilities derives its mandate from section 9 (3) of the Constitution.

Department has shifted its mandate from that of being a facilitation department to that of being a regulator.

As such, the mandate of the Department is to regulate the socio-economic transformation and implementation of the empowerment and participation of women, youth and persons with disabilities.
Furthermore, it will also create and facilitate a socioeconomic internal and institutional environment that will enable it to perform its function as a regulator.

Its ultimate vision is one in which the rights of women, youth and persons with disabilities are realised and the mission is to regulate the right of women, youth and persons with disabilities.

Subsequently, the Department has reverted back to its initial mandate as articulated in the APP of 2023/45.
For the purposes of assessing the year under review 2022/23, the mandate as regulator will be considered.
As stated in the Estimates of National Expenditure (ENE) for 2022, the Department received its transfer from National Treasury via Vote 20, which at the time was inclusive of five programmes namely; Programme 1: Administration; Programme 2: Mainstreaming Women’s Rights and Advocacy; Programme 3: Monitoring, Evaluation, Research and Coordination and Programme 4: Mainstreaming Youth and Persons with Disabilities Rights and Advocacy.
2 68 The Department notes as its outcomes as follows: • The socio-economic empowerment of women, youth and persons with disabilities through the development and implementation of regulatory frameworks, • The rights of women, youth and persons with disabilities realised through the development and implementation of legislation, and • The development and implementation of a stakeholder framework.
In the 2022/23 Annual Performance Plan for the Department, the Minister also noted that: • The regulatory mandate of the Department requires the department to provide directives and regulations to inform the implementation of the country’s commitments on equality, empowerment, participation and benefits for women, youth and persons with disabilities.

• The development of regulations should be based on relevant and current legislative prescripts.
• The location of the department at the Presidency is vital and provides an opportunity for it to advocate for and enforce the development of gender responsive policies, youth inclusive policies and disability friendly policies and plans through the provision of specialised knowledge and skills for mainstreaming of the three sectors.
• The development of regulatory frameworks for mainstreaming women, youth and persons with disabilities is a step towards the right direction to enable the enforcement of compliance by different sectors.

2.2 Mandate of the Commission for Gender Equality The Commission for Gender Equality (CGE) was established in 1996 according to the Commission for Gender Equality Act 39 (1996) to promote gender equality.
In its efforts to monitor, lobby, educate citizens and encourage the equitable development of women and men, the CGE is compelled to undertake the following: • To monitor and evaluate policies and practices of organs of State at any level, statutory bodies or functionaries, public bodies and authorities, and private businesses, enterprises and institutions; 3 69 • To cultivate an understanding of gender equality and the role and activities of the Commission through developing, conducting and managing information and education programmes; • To evaluate whether Acts of Parliament (existing or proposed), systems of personal and family law or custom, systems of indigenous law, custom or practices or any other law, will affect the status of women, and to make recommendations to Parliament in this regard; • To recommend to the National and Provincial Legislatures, any new legislation that would promote gender equality; • To investigate on its own initiative or due to a complaint, any gender related issue; • To maintain close relations with institutions that undertake similar work, and to facilitate cooperation in handling complaints; • To interact with civil society to further the work of the Commission; • To monitor compliance to international conventions, covenants and charters related to gender issues, and to submit reports to Parliament in this regard; • To conduct research on gender related issues; and • To consider recommendations, suggestions and requests made with regards to gender equality as received from any source.
2.3 Mandate of the National Youth Development Agency The National Youth Development Agency (NYDA) was established through the NYDA Act (No.

54 of 2008).

It was established to be a single, unitary structure to deal with youth development issues at a national, provincial and local government level.

The NYDA Act instructs the NYDA to promote a uniform approach to youth development by all organs of State, the private sector and non-government organisations.
The NYDA derives its mandate from legislative frameworks which is inclusive of the NYDA Act (No.

54 of 2008), the National Youth Policy (2009-2014) and the Integrated Youth Development Strategy.

The NYDA Act (No.

54 of 2008) stipulates objectives of the Agency as follows: a) Develop an Integrated Youth Development Plan and Strategy for South Africa.

b) Develop guidelines for the implementation of an integrated national youth policy and make recommendations to the President.
4 70 c) Initiate, design, co-ordinate, evaluate and monitor all programmes aimed at integrating the youth into the economy and society in general.

d) Guide efforts and facilitate economic participation and empowerment, and achievement of education and training.

e) Partner and assist organs of state, the private sector and non-governmental organisations and community-based organisations on initiatives directed at the attainment of employment and skills development.
f) Initiate programmes directed at poverty alleviation, urban and rural development and the combating of crime, substance abuse and social decay amongst youth.

g) Establish annual national priority programmes in respect of youth development.

h) Promote a uniform approach by all organs of state, the private sector and non-governmental organisations to matters relating to or involving youth development.
i) Endeavour to promote, generally, the interest of the youth, particularly young people with disabilities.

From an oversight perspective, the Committee is therefore responsible for overseeing the Department which is inclusive of the Commission for Gender Equality (CGE) and the National Youth Development Agency (NYDA).

3.

Purpose of the Budget Review and Recommendations Report (BRRR) The Money Bills Procedures and Related Matters Amendment Act (No.
9 of 2009) sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department.

Section 5 (1) of the Money Bills Amendment Procedure and Related Matters Act, (No.

9 of 2009) requires that the National Assembly, through its Committee, must annually assess the performance of each national department.
Section 5 (2) makes provision for the annual submission of the budgetary review and recommendations report (BRRR) for tabling in the National Assembly for each department.

It is expected of the BRRR to report on the following: • Assessment of the department’s service delivery performance given the available resources; • Assessments on the effectiveness and efficiency of the department’s use and forward allocation of available resources; and • May include recommendations on the forward use of resources.
5 71 4.

Method In order to enable the Committee to take informed decisions on the performance of the Department for the financial year 2022/23, the Committee consulted the following reports and documents: Section 32 reports of National Treasury, the Department’s Annual Report 2022/23, Reports of the Auditor-General of South Africa (AGSA), Report of the Department’s Audit and Risk Committee (ARC), the 2022 State of the Nation’s Address, the CGE’s and NYDA’s Annual Report for 2022/23.
All of this information assisted the Committee in providing a holistic assessment of the Department, the NYDA and the CGE’s performance for 2022/23 with reflections on the 1st Quarter report of 2023/24.
In complying with Section 5 (2) of the Money Bills Amendment Procedure and Related Matters Act, (Act No 9 of 2009), the Portfolio Committee on Women, Youth and Persons with Disabilities held a meeting on the 10th October 2023 to consider the 2022/23 Annual Report of the Department of Women, Youth and Persons with Disabilities.

The Office of the AGSA was invited to give input during the budget review and recommendation report process on the 13th October 20232 as well.
As noted previously, the Committee was also briefed and deliberated on the quarterly reports for 2022/23 including the first quarter report for 2023/24 of the Department.

As such, this report therefore includes those key issues that were identified by the Committee.

5.

Outline of the Contents of the Report This report provides an analysis of the financial and programmatic performance of the Department, the NYDA and the CGE.
Cognisance is taken of the reductions imposed on the budget allocated as well as revisions made to respective Annual Performance Plans and where relevant, commentary is provided in that regard.

Moreover, the report not only reflects on the Annual Reports but examines the Committee’s engagement with the entities for the year under review as well as the Q1 2023/24 performance and what needs to be taken into consideration going forward.
The report concludes with key observations and recommendations made by the Committee having engaged with the Department, the NYDA, the CGE, the AGSA and each of the Audit and Risk Committee’s for each of the entities.

6.

Overview of Key Policy Focus Areas - Strategic Priorities of Government 6 72 6.1 National Development Plan “The NDP Vision 2030 prioritises the significant role of women, youth and people with disabilities in our society.
If these three groups are strong, our whole society will be strong.

These are cross-cutting focus areas that need to be mainstreamed into all elements of South Africa’s developmental future and all programmes of government.
They will inform interventions across the three pillars.”1 The Department indicates that its mandate is aligned to the National Development Plan and that it was engaging with the DPME on ensuring that the 7 national priorities informs the policy priorities for gender, youth and disability and includes indicators and targets into the NDP 5- year Implementation plan and MTSF 2019-2024.

In turn, this would therefore inform the focus areas in the Strategic Plan for the next five years.
Furthermore, the Department maintains that its Country Gender Indicator (CGI) Framework which is the backbone of the monitoring mechanism of the Gender responsiveness Budgeting, Planning, Monitoring, Evaluation and Auditing (GRBPMEA) Framework has its foundation in the NDP, State of the Nation Address (SONA), Sustainable Development Goal (SDG) (5), Agenda 2063, Convention on the Elimination of all Forms of Discrimination (CEDAW), Beijing Platform of Action (BPfA), Solemn Declaration on Gender Equity in Africa, Protocol on Gender and Development, National Policy Framework for Women Empowerment and Gender Equality (NPFWEGE) and other regional and international instruments on women Thus in implementing its programmes, the Department maintains that it aligned its indicators to respond and contribute to the principles of the NDP.
This BRRR also examines the extent to which the Department has been able to do this for the year under review but also has a mid- point in the five-year term.
6.2 Medium-Term Strategic Framework (MTSF) The Medium-Term Strategic Framework (MTSF) (2019-2024) for the 6th Administration identified the following seven priorities: (a) Priority 1: A capable, ethical and developmental state; (b) Priority 2: Economic transformation and job creation; (c) Priority 3: Education, 1 Department of Planning, Monitoring and Evaluation, Republic of South Africa (2019) Medium Term Strategic Framework 2019-2024.
7 73 skills and health; (d) Priority 4: Consolidating the social wage through reliable and quality basic services; (e) Priority 5: Spatial integration, human settlements and local government; (f) Priority 6: Social cohesion and safe communities and (g) Priority 7: A better Africa and world All of the MTSF priorities are underpinned by three pillars namely; (a) Achieving a more capable state (b) Driving a strong and inclusive economy (c) Building and strengthening the capabilities of South Africans.
The MTSF 2019-2024 aims to address the challenges of unemployment, inequality and poverty through three pillars outlined above.

Moreover, the MTSF has also identified cross-cutting focus areas for women, youth and persons with disabilities which are implicitly linked to the National Development Plan (NDP).

“Cross-cutting focus areas: The NDP Vision 2030 prioritises the significant role of women, youth and people with disabilities in our society.
If these three groups are strong, our whole society will be strong.

These are cross-cutting focus areas that need to be mainstreamed into all elements of South Africa’s developmental future and all programmes of government.

They will inform interventions across the three pillars.”2 The Department provided specific commitments with respect to each of the MTSF priorities identified and presented these to the Committee in May 2020.
To this end, the Departments indicated that its outcomes are aligned to Priority 1, 2, 5 and 7 and that its core work lies in promoting mainstreaming of women, youth and persons with disabilities’ issues across the work of different sectors across all three spheres of government, within the private sector, and in civil society.
The Department states in the annual report under review that “Departmental Strategic Planning Sessions were held with all managers to ensure that the Annual Performance Plans align with the MTSF 2019-2024, DWYPD Strategic Plan 2020-2025 and the Minister's Performance Agreement.”3 6.3 State of the Nation Address 2022 The President made reference to women and youth in the 2022 State of the Nation Address (SONA) in relation to combatting gender-based violence and economic empowerment.
With respect to gender-based violence, President Cyril Ramaphosa noted that government is intensifying the fight against gender-based violence and femicide (GBVF) through implementation of the National Strategic Plan on Gender-Based Violence and Femicide, and other measures to promote the empowerment of women.

He also highlighted the signing into 2 Department of Planning, Monitoring and Evaluation, Republic of South Africa (2019) Medium Term Strategic Framework 2019-2024.
3 Department of Women, Youth and Persons with Disabilities (2023) Annual Report 2022/23, p.46.

8 74 law three pieces of legislation, which are aimed at strengthening the criminal justice system, promoting accountability across the State and supporting survivors (i.e.

the Criminal and Related Matters Amendment Act 12 of 2021, the Criminal Law (Sexual Offences and Related Matters) Amendment Act Amendment Act 13 of 2021 and the Domestic Violence Amendment Act 14 of 2021.
Mention was also made of progress in reducing the backlog in DNA processing, reducing it from 210 000 exhibits in April 2021 to around 58 000 as at February 2022.4 With respect to access to economic opportunities, the President reflected on the Presidential Employment Stimulus and youth employment.

The President indicated that the first two phases of the Presidential Employment Stimulus programmes, which government launched in October 2020, have supported over 850 000 opportunities.
More than 80% of participants were young people and over 60% were women.

This makes it the largest youth employment programme ever undertaken in the country’s history.

With respect to Government’s initiatives to address youth employment, the SAYouth.mobi platform for young work seekers to access opportunities and support now has more than 2.3 million young South Africans registered.

Of these over 600 000 have been placed into employment opportunities.
In addition, a revitalised National Youth Service would recruit its first cohort of 50 000 young people during 2022/23, creating opportunities for young people to contribute to their communities, develop their skills and grow their employability.

It must be noted that while many of the highlighted/proposed undertakings and commitments will also impact on persons with disabilities, no specific mention was made of programmes and plans to assist this marginalised group.
Outcomes and targets of the Department for the 2022/23 financial year were aligned to the areas noted by the President.

During the year under review, the Committee also requested the Department to report on progress in terms of what the President identified in its 2022 SONA and how the respective programmes were responding to these.

Similarly, the CGE and NYDA were also requested to do the same in its quarterly report briefings to the Committee.
Despite requests made in this regard, not much was reflected during quarterly reporting.

The Department provided a progress report on the SONA 2022 commitments.

4 Levendale, C (2023) Annual Report Overview 2022/23 Department of Women, Youth and Persons with Disabilities, Budget Overview and Programmes 1, 2 and 3.

Parliament of the Republic of South Africa, Research Unit, 9 October 2023 9 75 7.
Department’s Strategic Priorities 7.1 Strategic Priorities as per Strategic Plan 2020-20255 As per the Strategic Plan (2020-2025), the Department outlines the links between the 7 MTSF priorities, the NDP and SONA priorities by highlighting the alignment through the various outcomes and five-year targets that were identified in its Strategic Plan for 2020-2025 as outlined below.
7.1.1 MTSF Priority 1: A Capable, Ethical and Developmental State Outcomes: • Improved governance processes and systems for DWYPD • Government-wide planning, budgeting, M&E addresses priorities relating to women’s empowerment, youth development and the rights of persons with disabilities • Gender, youth and disability rights machineries institutionalised • Accessible and available evidence based knowledge and information on access to services, empowerment and participation for women, youth and persons with disabilities • Revised legislative framework to respond to and enforce rights of women, youth and persons with disabilities • Strengthened stakeholder relations and community mobilisation towards the realisation of women’s empowerment, youth development and disability rights 7.1.2 MTSF Priority 2- Economic Transformation and Job Creation • Equitable economic empowerment, participation and ownership for women youth and persons with disabilities being at the center of the national economic agenda 7.1.3 MTSF Priority 3- Education, Skills and Health Outcomes • Education: Improved rate of educational attendance and retention of young women and women with disabilities in public sector institutions • Health: Improved health for women, youth and persons with disabilities • Skills: Improved skills for women, youth and persons with disabilities 5 Department of Women, Youth and Persons with Disabilities (2020) Strategic Plan 2020-2025 10 76 7.1.4 MTSF Priority 4 - Consolidating the Social Wage through Reliable Outcomes: • The Department, working with the Department of Social Development and of Health, will co- develop and ensure implementation of a core package of essential psychosocial support and norms and standards for substance abuse, violence against women and children.
Through the core package the department will ensure that 90% of victims of GBVF have access by 2024.

• The Department will develop different interventions to reduce GBVF among women, youth and persons with disabilities.

One of the interventions is the National Strategic Plan to end GBVF which will be accompanied by a monitoring framework to ensure its implementation.

• The actual deliverables are covered under Priority 6 and the details on the specific deliverables will be outlined in the APP each year.
7.1.5 MTSF Priority 5: Spatial Integration, Human Settlements and Local Government: Outcomes: • The department will lobby and support other department’s infrastructure and neighbourhood development grants and tax rebates and new structures to incorporate universal design norms and standards.

This will include retrofitting existing buildings, transport and Information and Communication Technology (ICT) systems and infrastructure to ensure universal design.
It will also monitor compliance with the universal design, norms and standards.

• Furthermore, the department, through Programme 5 on Persons with Disabilities, will develop Frameworks on Disability Rights Awareness Campaigns.

7.1.6 MTSF Priority 6- Social Cohesion and Safe Communities Outcomes: • Levels of marginalisation, stigmatisation and discrimination and violence against women, girls and persons with disabilities reduced • Equal opportunities, inclusion and redress.
The department contributes to Priority 6 through the Stakeholder Coordination and Outreach (SCO) sub-programme, which is responsible for coordinating sustained and visible initiative/ campaigns on gender to contribute to the target of 30 by 2024.
7.1.7 MTSF Priority 7- A Better Africa and World Outcomes: 11 77 • Strengthened women, youth and disability rights agenda within global, continental and regional platforms, institutions and engagements towards a better Africa and the world • Gender equality, youth and disability agenda strengthened within multilateral institutions • The department contributes to Priority 7 through the International Relations (IR) Directorate and the Research Policy and Knowledge Management, on international reporting “The Department during its Strategic Planning session of the 2021 financial year and the medium term, made revisions to key elements of its Strategic Plan 2020/21-2024/25.
In the financial year 2022/23 there were no changes to the Strategic Plan 2020/21-2024/25.”6 7.2 Strategic Outcomes over MTSF Period The Department’s annual report for 2022/23 outlines in the table below the following key institutional impacts and outcomes as informed by priorities and other Government-wide outcomes: Table 1: 2022/23 Institutional Impacts and Outcomes IMPACT Improved Quality of Life for Women, Youth and Persons with Disabilities OUTCOMES • Improved governance processes and systems for Department of Women, Youth and Persons with Disabilities (DWYPD).
• Government-wide planning, budgeting, M & E addresses to women’s empowerment, youth development and the rights of persons with disabilities.

priorities relating impact It must be noted that in 2021/22 only the outcomes under statement this (Improved quality of life for Women, Youth and Persons with Disabilities) were identified as strategic outcomes.

These outcomes have now been expanded to include those listed below.

This is in alignment with the outcomes as listed in the APP.
• Gender, youth and disability rights machineries institutionalized.

• Accessible and available evidence based knowledge and information on access to services, empowerment and participation for women, youth and persons with disabilities.

• Strengthened stakeholder relations and community mobilisation towards the realisation of women’s empowerment, youth development and disability rights.
• Revised legislative framework to respond to and enforce rights of women, youth and persons with disabilities • Socio-Economic Empowerment of WYPD.

• Rights of Women, Youth and Persons with Disabilities realised.

• Stakeholder Management.


6 Department of Women, Youth and Persons with Disabilities (2022) 12 78 Transformed, representative and inclusive economy which prioritises women, youth and persons with disabilities • Equitable economic empowerment, participation and ownership for women youth and persons with disabilities being at the centre of the national economic agenda.
All women and girls, youth and persons with disabilities enjoy good quality health care and better life opportunities and educational outcomes • Socio-Economic Empowerment of WYPD.

• Improved rate of educational attendance and retention of young women and women with disabilities in public sector institutions.

Improved health for women, youth and persons with disabilities.
Improved skills for women, youth and persons with disabilities • • All women, girls, youth and persons with disabilities are and feel safe and enjoy freedom and a better life Africa and the world that is more responsive and inclusive to the rights of women and persons with disabilities • Levels of marginalisation, stigmatisation and discrimination and violence against women, girls and persons with disabilities reduced • Strengthened women, youth and disability rights agenda within global, continental and regional platforms, institutions and engagements towards a better Africa and the world Moreover, the Department also notes the following as its main services: a) Coordinate the establishment of an accountability architecture (national coordinating structure) undergirded by the necessary resources to drive a multi-sectoral response to Gender-Based Violence and Femicide (GBVF).
b) Develop and implement a National Strategic Plan (NSP) on GBVF.

c) Reinvigoration, revitalisation and strengthening of the National Gender Machinery.

d) Women’s empowerment and gender equality mainstreaming.

e) National Gender Machinery Coordination and Accountability Forum to support closer collaboration between government, Parliament, independent bodies, private sector and civil society.

f) Employment of Gender Focal Points in government departments as outlined in the NGPF (2000).
g) To develop intervention mechanisms for gender mainstreaming for women’s socio-economic empowerment, transformation and gender equality.

h) Promote gender sensitive research and policy analysis in relation to gender equality and women’s empowerment.

i) Establish a knowledge gateway for women’s socio-economic empowerment transformation and gender equality.
j) Monitor and evaluate the impact of government policies and programmes on improving the socio-economic status of women, which includes facilitating stakeholder coordination (domestic, regional and international).

13 79 k) Conducting outreach initiatives, including dialogues to share and gather information to promote women’s socio-economic empowerment and gender equality.
7.3 Strategic Priorities 2022/23 As per the ENE (2022) the Department that, “Over the MTEF period, the department will continue to focus on strengthening the coordination of the national response to gender‐based violence; promoting more responsive planning, budgeting, monitoring and evaluation in government; protecting the rights of people with disabilities; and supporting the participation of young people in the mainstream economy.
The budget structure of the department has been amended from five to four programmes, to align better with the department’s mandate.”7 In addition, other policy instruments and legislation that the Department aims to develop and implement across the next five years includes the following: • Socio economic empowerment index policy • WYPD Responsive planning, budgeting, monitoring and evaluation framework • National Gender Policy framework • WYPD mainstreaming framework • Reasonable accommodation framework • Universal design and access framework • Self-representation framework • Disability Rights Awareness Campaign framework • Women empowerment and gender equality (WEGE) Bill • National Council on Gender Based Violence Bill • Disability Rights Bill • NYDA Amendment Bill • South African Youth Development Bill With regards to the CGE, “Over the medium term, the commission will continue to advance legislation, policies and advocacy initiatives that contribute to the eradication of gender inequality and the empowerment of women.
It plans to do this by: influencing government laws and policies through written submissions to Parliament; producing research, and monitoring and evaluation 7 National Treasury (2022) Estimates of National Expenditure, Vote 20 Women, Youth and Persons with disabilities, p.362 14 80 reports; investigating issues that undermine the attainment of gender equality and the empowerment of women; increasing education and awareness through outreach and stakeholder engagements; and handling gender‐related complaints.”8 With regards to the NYDA, “Over the MTEF period, it will continue to focus on providing interventions to support the creation of decent employment and the development of skills, and encourage entrepreneurship, for all young people.
These interventions will take the form of financial and non‐financial support to enable young people to access skills and jobs, establish and sustain enterprises, and gain access to markets.

Financial support is provided through grants to township and rural enterprises run by young people, whereas non‐financial support includes accounting, website development, business plan writing and marketing.
Over the MTEF period, R789.5 million is allocated for developing entrepreneurial skills among young people through business management training and mentorships, and R286.7 million is allocated for helping them find employment through jobs programmes.

The national youth service programme is part of the presidential employment initiative, which seeks to provide social assistance through public employment.
The programme has an allocation of R498.5 million over the medium term to ensure that young people stay engaged in service to their communities and build the spirit of patriotism, solidarity, social cohesion and unity in diversity.

This funding will also provide for stipends for young people participating in the programme, as well as project management costs and some training.”9 8.
Policy Priorities for 2022/23 The Department identified MTSF Priority 6 (Social cohesion and safer communities) alongside the following indicators and programmes in the ENE 2022: Programme 3: Monitoring, Evaluation, Research and Coordination • 2 reports on the compliance of government commitments on international and regional instruments produced per year • 1 research report on government priorities produced per year • 12 stakeholder engagements on the empowerment of women, youth and people with disabilities conducted per year 8 National Treasury (2022) Estimates of National Expenditure 2022, Vote 20: Women, Youth and Persons with Disabilities, p. 372 9 National Treasury (2022) Estimates of National Expenditure 2022, Vote 20: Women, Youth and Persons with Disabilities, p.375 15 81 • 4 community mobilisation initiatives on the rights of women, youth and people with disabilities coordinated per year Programme 4: Mainstreaming Youth and Persons with Disabilities’ Rights and Advocacy • 1 research report on the inclusion of people with disabilities produced per year Furthermore, the Department goes on to outline in its Annual Performance Plan for 2022/23 the 5-year policy priorities as defined by the MTSF 2019/2024 as follows: • A gender, youth and disability responsive public service.
• Transformed, representative and inclusive economy which prioritises women, youth and persons with disabilities.

• All women, girls, youth and persons with disabilities enjoy good quality health care and better life opportunities.

• Human dignity for persons with severe disabilities, women and girls’ achieved through freedom of choice and decent living conditions • Transform ownership and management patterns by supporting women-owned and led enterprises.
• All women, girls, youth and persons with disabilities are and feel safe and enjoy freedom and a better life.

• A better Africa and world for all women, girls, youth and persons with disabilities.

9.

General Overview and Assessment of Financial Performance for Department According to the Estimates of National Expenditure 2022, R987,3 million was allocated for Vote 20 for the Department of Women, Youth and Persons with Disabilities.
Bearing in mind that R100,7 constituted the transfer payment to the CGE and R681,5 million to the NYDA.

This amounted to R782,2 million.

Hence the Department would have been left with an operating budget of R205 million to undertake its programmes and meet its targets for 2022/23.
An additional R4 million was received during the year as National Treasury announced on 04 November 2022, the approval of a further allocation of R4.46 million for compensation of employees to provide for the 3% pensionable salary increase and non-pensionable cash allowance back dated from April 2022.

Thus bringing the total operational budget to approximately R209 million.

16 82 As of 31 March 2023, the Department spent R983,259 million (99.1%) of its total budget R991,714 million (includes transfers).
The total under-expenditure incurred was R8,455 million.

With respect to the operational budget, the Department spent R201,272 million (95.9%).

The Department reports a total of R12,106 million in virements from Programmes 2, 3 and 4 to Programme 1 (Administration), 2, 3 and 4.

As such R3,498 million was shifted from Programme 4 to Programme 1 for Goods and services in addition to R111 000 for Transfers and subsidies (households) and R66 000 for Machinery and equipment.
Programme 1 received a further R842 000 for Goods and services from Programme 1 in addition to R58 000 for Machinery and equipment.

In programme 2, R19 000 was moved to Programme 2 from Programme 4 for Transfer and subsidies whilst R65 000 was moved within the programme from Goods and services to Transfers and subsidies.

A further R5,291 million was moved from Programme 2 to Programme 3 for Goods and services.
For Programme 3, R1,621 million was moved from Programme 3 to Programme 4 for Compensation of employees.

In addition, R479 00 was moved from Programme 4 for Goods and services and a further R56 000 for Machinery and equipment.

Hence this was an internal virement between sub-programmes and within a programme.

In summary, Programme 1 received an additional R4.575 million, Programme 2 received R19 000, Programme 3 received R5,826 million and Programme 4 received R1,621 million.
In examining the programme expenditure for 2022/23, the following table has been collated using the information the information provided in the Annual Report.

Table 2: Total vs Operational Expenditure as at 31 March 202310 Programme Total Expenditure Incl.

transfer payments Total budget as per Annual Report Appropriation Statement (incl.

transfer payments) Budget per programme excluding transfer payments (operational budget) 1.
Administration R 110,129m R 105,014m R110,129m Actual expenditure excluding transfer payments (operational expenses) % of allocated programme budget R105,014m 95.4% Programme expenditure as % of total operational expenditure R105,014m 52.2% 10 Levendale, C (2023) Annual Report Overview 2022/23 Department of Women, Youth and Persons with Disabilities, Budget Overview and Programmes 1, 2 and 3.

Parliament of the Republic of South Africa, Research Unit, 9 October 2023 17 83 2.
Mainstreaming Women’s Rights and Advocacy 3.

Monitoring, Evaluation, Research and Coordination 4.
Mainstreaming Youth and Persons with Disabilities Rights and Advocacy Total R 125,334m R 124,621m R24,612 m (R125,334 – R100,722m CGE) R49,319m R46,699m R49,319m R706,932 m R706,925 m R25,667m (R706,932m – R681,265m NYDA) R23,899m 97.1% R46,699m 94.7% R25,660m 99.9% R23,899 m 11.9% R46,699m 23.2% R25,660m 12.7% R201,272 million Total under-expenditure = R 8,455m R 991,174 million R 983,259 million Total budget expenditure = 99.1% R 209,727 million Total expenditure, i.e.
operational budget = 95.9% The table provides an overview of expenditure as at the end of the 2022/23 financial year.

The following can be noted:11 • When considering the overall expenditure of the Department based on its total appropriation of R991,714 million it appears that the Department has spent 99.1% or R983,259 million of its total budget.

• However, when considering the budget less the transfer payments to the CGE and NYDA, i.e.
the operational budget (R 209,727million), the Department has spent 95.9% or R201,272 million of the operational budget.

This is however an improvement from the previous FY 2021/22 where the Department underspent by more than R31 million which amounted to just under 75% of its budget.

• The bulk of the Department’s operational budget was still allocated to its Administration Programme (Programme 1).
This programme also consumed the largest expenditure (R105,014 m) of the Department’s operational budget which amounted to 52.2%.

Programme 2, accounts for only 11.9% of expenditure, while Programme 3 and 4 accounts for only 23.2% and 12.7% of operational expenditure.

• Total under-expenditure for the year amounts to R8,455 million.
The Department reports that it has requested the following roll-over funds from National Treasury: 11 Ibid 18 84 • R 648 000 of the rollover relates to unspent funds payments for capital assets in relation to the payment of Microsoft licence fees • R 7.864 million relates to: - funds that were earmarked for ICT migration on the Microsoft platform, - a radio show on economic empowerment, business development and doing business with the state, - budget for continuation of the implementation of the NSP on GBVF.
However, it is not clear how much of the R7.8 million is required for each of the above as this was not specified in the annual report 2022/23.

Furthermore, the Department still awaits the outcome of these requests.

The key cost drivers were Compensation of Employees and Goods and Services.

As such, 58.2% (R117,187 million) of the Department’s operating budget has been spent on Compensation of Employees (CoE).

This was an increase of R2,11 million from 2021/22 which is marginal.
Furthermore, 38.5 % has been consumed by Goods and Services (R77,666 million) of the operating expenditure.

Hence this is an increase from the 25% expenditure in 2021/22.

Thus expenditure on Goods and services has increased by over R26 million.

In terms of spending under Goods and services, the line items which have incurred the greatest expenditure are listed in the table below for 2021/22 and 2022/23.
Table 3: Comparison of Key Cost Drivers between 2021/22 and 2022/23 Key Cost Driver Compensation of employees Goods and services - Property payments - Travel & Subsistence - Communication - External Audit Costs - Computer services - Advertising - Consultants - Venue and facilities 2022/23 R117,187 million R77,666 million R13,009 million R22,054 million R3,602 million R4.415 million R8,265 million R2,760 million R7,230 million R3,979 million 2021/22 R115,077 million R50,993 million R21,649 million R4,450 million R4,008 million R3,802 million R4,224 million R5,112 million R1,848 million R1,110 million Reflecting in the key cost drivers across the two financial years, 2021/22 and 2022/23 respectively, these remain fairly similar.
Notwithstanding that, Compensation of Employees sees an increase from R115 million in 2021/22 to R117 million in 2022/23.

There has also been a significant decrease in property payments from R19.1 million in 2020/21 to R21,649 million in 2021/22 to R13,009 million in 2022/23.

This has been due to the decrease in rental as part of the relocation during October 2022.
While travel and subsistence remains a primary cost driver 19 85 it has seen a marked increase from R4,450 million in 2021/22 to R22,054 million.

The increase is attributed to the change from virtual to physical outreach events and on international travel as part of attending meetings regarding treaties to which the Department is signatory to.
The increase in computer services is linked to the signing of the new services level agreements and the implementation of the migration on the Microsoft platform to cloud.

The increase in consultants: business and advisory services is due to research projects that have been undertake through the Human Science Research Council (HSRC) for the Department.
In terms of spending under Goods and Services, the main cost drivers were travel and subsistence (R22,054 million), property payments (R13,009 million), consultants (R7,230 million) expenditure for external audit costs (R4,415 million), computer services (R4,224 million), communication (R4,008 million), venues and facilities (R3,979 million) and Advertising (R2,760 million).

These 7 line items consume 79.4% (R61,679 million) of the Goods and Services budget.
The Department indicated that under-spending per programme was due to following reasons as cited in the table below: Table 4: Under-expenditure per programme for 2022/2312 Programme Under- Expenditure P1: Admin R5,115 million Under- expenditure as % of total operational budget Under- expenditure as % of programme operational budget 2.5% 4,9% Reason For Under-Expenditure Goods and services – R3.510 million - Savings realised under the sub-programme Office Accommodation to fund part of the Information Communication Technology (ICT) infrastructure installation due to the relocation of the department to new premises during October 2022.
Payments for Capital Assets – R1.535 million - Savings realised under the sub-programme Corporate Management to fund part of the ICT infrastructure installation due to the relocation of the department to new premises during October 2022.

12 Levendale, C (2023) Annual Report Overview 2022/23 Department of Women, Youth and Persons with Disabilities, Budget Overview and Programmes 1, 2 and 3.
Parliament of the Republic of South Africa, Research Unit, 9 October 2023 20 86 Programme Under- Expenditure Under- expenditure as % of total operational budget Under- expenditure as % of programme operational budget Reason For Under-Expenditure The delay in the finalisation of the above is due to challenges experiences at the State Information Technology Agency (SITA).

A roll-over request has been made.


0.4% 3% Not specified P2: MWRA R713 000 P3: MERC R2,620 million 1.3% 5.6% Compensation of employees: R2.579 million Under-spending is mainly due to the vacancies currently in the programme that are in the process of being filled.

This includes but not limited to the DDG: Monitoring, Evaluation, Research and Coordination, the CD: International Relations, Stakeholder Management and Capacity Building and Dir: International Relations.
Not specified P4: MYPDRA R 7000 Less than 0.01% 0.03% Based on the table above, the main reasons for under-spending related to Good and Services and payment for capital assets.

When considering, the under-expenditure as a percentage or proportion of the actual operational budget of R209,727 million as opposed to the total budget of R99,174 million which is inclusive of the transfer payments to the NYDA and the CGE, it is vastly different.
Hence as a proportion of the operational budget, the smallest percentage of under-expenditure occurs in Programme 2 and 4 of the operational budget, while the greatest under-expenditure is in Programme 1 (R5,1115 million) and 3 (R2,620 million).

Furthermore, the Department indicated that it utilised 116 consultants on 16 projects amounting to R6,590 million.

As compared to 2021/22 when it used 39 consultants on 9 projects for R1,848 million.
The Department is not able to indicate the estimated duration/work days of these consultants for the projects stated as either indefinable for the majority or ongoing in the Annual Report.
Table 5: Use of consultants for 2022/23 21 87 Project Title Total number on consultants that worked on the project Estimated Duration (work days) Contract Value in Rands (R’000) Health risk management (SOMA) 11 Ongoing Competency Assessment B-BBBEE Verification Audit Committee Participation of WYPD across Sectors Project Inception Phase Research Project Salary Disparity Development of Disability Result Development of Concept Paper Qualification Verification Formative Evaluation of GRPBMEAF Theory of Change & Sector Data Analysis Implementation of Evaluation of White Paper Council Project Expenditure Feasibility Study Socio Economic Translators, Interpreters & Sign Language Total 2 1 3 1 7 1 1 2 1 2 1 4 3 1 38 116 2 Indefinable Indefinable Indefinable Indefinable Indefinable Indefinable Indefinable Ongoing Indefinable Indefinable Indefinable Indefinable Indefinable Indefinable 17 36 46 302 989 943 298 300 484 2 160 799 666 247 750 293 R6,590 million 9.1 Expenditure Management for 2022/23 9.1.1 Irregular Expenditure • The Department has irregular expenditure to the amount of R41,712 million on its financial statements relating to previous financial years and that R20.4 million is currently under investigation.
Foer 2022/23, R719 000 of irregular expenditure was incurred.

9.1.2 Fruitless and wasteful expenditure • The Department has not incurred any Fruitless and Wasteful expenditure for 2021/22.

However, previous expenditure (R11,787 million) is still on record and is currently with the with the State Attorney to investigate and consider possible recovery of funds.

22 88 9.1.3 Unauthorised expenditure • The Department did not incur any Unauthorised expenditure for 2022/23.
However, there is unauthorised expenditure from previous years that is awaiting authorisation.

This amounts to R32,774 million.


9.1.4 Exemptions and Deviations • The Department states that the ruling of the constitutional court on the validity of the Preferential Procurement Regulations 2017 posed a risk to the Department procurement processes in that awards and procurement request above R30 000 cannot proceed until clarity from the Constitutional court is received or a new Preferential Procurement Regulation is proclaimed, whichever comes first.
Subsequently, the Department applied for an exemption to proceed with procurement.

The application was approved by National Treasury during March 2022 and the new Preferential Procurement Regulations was proclaimed on 04 November 2022.

• Deviations are now reflected as “Procurement by other means” in the annual report of 2022/23.

• At the end of the 2021/22 financial year, the Department had incurred 20 deviations, amounting to R1.929 418 million.

This increased in 2022/23.


• By 31 March 2023, the end of the 2022/23 financial year, the Department had a total of 37 deviations or instances of “procurement by other means”, amounting to R23.394 million of which 15 were single source appointments and 22 related to obtaining less than 3 quotes for amounts more than R2000.
To this end, the following was noted: - 8 deviations related to the Department’s relocation - 15 related to venues and catering - 3 related to training - 2 related to emergency medical services and teleprompter services at events - 2 related to ICT - 3 related to Furniture, blinds, reasonable accommodation • In addition to the deviations, there were also 9 instances of contract variations and expansions.
9.1.5 Contingent Liabilities • The Department noted contingent liabilities to the amount of R15 million in 2021/22 and in 2022/23 it incurred additional contingent liabilities to the value of R7 million, bringing 23 89 the total to R22.1 million.

Table 5 below provides an overview of the nature of the liability incurred by the Department.
Table 6: 2022/23 Contingent Liabilities for Department Nature of liability: Claims against the Department Civil matter between Barloworld South Africa t/a Avis Luxury Cars and DOW R101 000 NZ Mrwetyana and 3 others v SA Post Office and 3 others T Mxenge vs Dept of Women, Youth and Persons with Disabilities Total R15 million R7 million R22.101 million Value of Liability In light of Table 6 above, the Department states the following in the Annual Report 2022/23: • The matter on the Barloworld case is currently at an advance stage in court for R101 thousand.
Should the department succeed in the matter, the liability might decrease to R10 thousand.

• The Department is a defendant in a case including three other defendants.

As the case has not served in court yet, the liability breakdown of the R15 million linked to the department cannot be determined.

As the progress of determination will be sought and provided during the case.5 • The Department is currently having a claim against the department for R7 million emanating out of a disciplinary hearing.
9.1.6 Donor funds • For the 2022/23 year, the Department indicates that it has incurred R8.499 million for a project funded by the European Union (R109 349 182 for 2021/22 – 2023/24).

Expenditure is relation to the remuneration of the consultants, travel and subsistence cost as part of monitoring and evaluation in the 3 provinces (Gauteng, Eastern Cape and KwaZulu-Natal).
Expenditure also related to partial payments on 2 projects namely Gender Mainstreaming and the tools of trade in terms of laptops for the Technical Monitors and Data Capturers.

The outputs as per the business case therefore had to be carried over to the 2022/23.

• The Department reports that the outputs as per the business case had to be carried over to the 2022/23 financial year as well as the requested funds of R23.214m.
This was a recurrence of what transpired in the previous FY whereby funds had to be carried over.

The Department reported that it was in the process of compiling the report for the 2021/22 financial year for submission to National Treasury and the European Union.
24 90 • In its Statement of Aid Assistance Received (page 197 of the Annual report), the Department reflects a total/opening balance of R22.593 million in relation to these funds and states the following: “Funding for the R8.585 million has been requested during the 2022-23 financial year, but due to a delay in the process linked to reporting and challenges at National Treasury, the funding will only be transferred during the 1st quarter of the 2023-24 financial year.” 9.2 2021/22 MTEF financial allocation The Department still maintains that it is under-resourced and requires more funding in order to function more optimally as there are capacity constraints across all programmes.
9.3 Concluding comments on financial performance The Department spent 95.9% (R201,272 million) of its operating budget (R209,727 million) and managed to achieved 95.1% () of its targets as per the revised APP reflected in the Annual Report 2022/23.

The underspending decreased from R31,085 million in the previous FY (2021/22) to R8,455 million in the year under review which is an improvement.
When considering the overall expenditure of the Department based on its total appropriation of R 991.714 million, it appears that the Department has spent 99.1% or R 983.259 million of its budget.

Programme 1 increases by approximately R12 million and consumes 52.5% of the operating budget.
Programme 2: Mainstreaming Women’s Rights and Advocacy accounts for only 11.8% of expenditure, while Programme 4, Mainstreaming Youth and Persons with Disabilities Rights and Advocacy accounts for only 12.7% of operational expenditure.

Despite a sizeable portion of the operational budget being allocated to Compensation of Employees, the Department relied on consultants to deliver on targets and expenditure incurred despite a large cohort of staff within programmes.
Most of the expenditure incurred as in the previous financial years was for Compensation of Employees and Goods and Services.

10.

OVERVIEW AND ASSESSMENT OF SERVICE DELIVERY & FINANCIAL PERFORMANCE PER PROGRAMME FOR DEPARTMENT OF WOMEN, YOUTH AND PERSONS WITH DISABILITIES 25 91 This section provides details of annual targets as per the original APP and the revised APP for each programme as well as an indication as to which targets have been reported on in the Annual Report.
An indication is also provided of whether targets have been achieved or not.

10.1 Programme 1: Administration The purpose of this Programme is to provide strategic leadership, management and support services to the department.

The purpose of each sub-programme is as follows: • Ministry: The purpose of the sub-programme is to provide executive support to political principals.
• Departmental Management: The purpose of this sub-programme is to provide executive support, strategic leadership and management to the Department.

• Financial Management: The purpose of this sub-programme is to provide and ensure effective, efficient financial management and supply chain services.

This includes budget planning and expenditure monitoring; and the management of procurement, acquisition, logistics, asset, and financial transactions.
• Corporate Management: The purpose of this sub-programme is to provide effective human capital management, facilities and auxiliary management and ICT systems enablers for the Department.

This programme planned to achieve 7 targets of which 6 (85.7%) were achieved and 1 target was not achieved as reflected in the Annual Report.
The target not achieved related to the following target: • Maintain a vacancy rate of less than 10% annually The total allocation for this programme was R98,7 million as per the initial Estimates of National Expenditure (ENE) 2022.

The programme saw a significant increase to a final appropriation of R110,129 million.

Thus an increase of nearly R11,429 million from its initial budget to final appropriation.
In terms of Virements, no funds were moved out of this programme but a total of R4,575 million was moved into the programme for Goods and Services, Machinery and equipment as well as Transfers and subsidies.

This programme still consumed the highest proportion (52.5%) of the Department’s operational budget in 2022/23.

The actual expenditure was R105,079 million which amounts to 52.2% of the total operational 26 92 expenditure and 95.4% of the total programme budget.
An under-expenditure of R5,115 million was recorded.

The key cost drivers for Programme 1 were as follows: • Compensation of Employees accounted for 57% of the programme budget (R59.904m) • Goods and Services accounted for 38.8% of the programme budget (R40,795m).

With respect to the expenditure per sub-programme, the Ministry with a final appropriation of R16,416 million spent R16,414 million thus incurring an under-expenditure of R2 000.
The Departmental Management had a final appropriation of R22,368 million and spent R22,361 million with slight under-expenditure of R7 000.

Corporate management had a final appropriation of R31,220 million and spent R29,657 million incurring an under-expenditure of R1,563 million.

Financial management had a final appropriation of R23,152 million and spent R23,090 million incurring an under-expenditure of R62 000.
Office accommodation had a final appropriation of R16,973 million and spent R13,492 million incurring an under-expenditure of R3,481 million.

10.2 Programme 2: Mainstreaming Women’s Rights and Advocacy The purpose of the programme is to to promote good governance regarding the rights and transformation of the social and economic empowerment of women.
The programme consists of the following sub-programmes namely; • Management Advocacy and Mainstreaming for the Rights of Women: The purpose of the sub-programme is to provide strategic leadership and management to the programme.

• Social Empowerment of Women (SEW): The purpose of the sub-programme is to promote good governance to further transformation, social justice and empowerment and rights for women.
• Economic Empowerment of Women (EEW): The purpose of the sub-programme is to mainstream and promotes good governance to further transformation, economic justice, empowerment and rights of women.

• Commission for Gender Equality (CGE): The department facilitates transfer payments to the Commission for Gender Equality, which promotes gender equality and respect for women's rights.
27 93 For the year under review, this programme had achieved 6 out of 11 targets and states that 2 targets were not carried out as these were amended in the addendum APP.
The targets that were not met were as follows: • 4 progress reports on implementation of the Sanitary Dignity Implementation Framework by provinces produced • Only 17/18 Rapid Response Teams were established • 2 reports on implementation of Comprehensive National GBVF Prevention Strategy developed Targets not carried out: • 4 Quarterly report on implementation of NSP on GBVF Framework developed • 9 Provincial departments and 4 municipalities plans monitored on the implementation of NSP on GBVF In terms of this programme’s operating budget i.e.
excluding the transfer (R100,722 million) to the CGE, this programme was allocated R33,5 million as per the ENE 2022.

The total allocation for this programme including the CGE was R134,3 million as per the ENE 2022.

The final appropriation was R125,334 million (includes CGE transfer).

Excluding the CGE transfer the operating budget for this programme was R24,612 million.
The programme recorded a virement of R6,191 million moving out of the programme to Programme 1 for Goods and services and Machinery and equipment as well as Programme 3 for Goods and services.

Notwithstanding that, R19 000 was moved from Programme 4 into this programme for Transfers and subsidies.

The actual expenditure incurred was R124,621 million (99.4%).
But excluding the transfer to the CGE this programme spent R23,899 million, 11,9% of the total operational expenditure and 97.1% of the total programme budget.

Thus an under-expenditure of R713 000 which amounted to 3% of the programme operational budget.
The key cost drivers for this programme was as follows: • Compensation of Employees accounted for 76.3% of the programme budget (R18,246m), • Goods and Services accounted for 23.1% of the budget (R5,539m) 28 94 With respect to the expenditure per sub-programme, Management with a final appropriation of R3,550 million spent R3,463 million with an under-expenditure of R87 000.
The Social Empowerment of Women sub-programme with a final appropriation of R14,535 million spent R13,910 million incurring an under-expenditure of R625 000.

The Economic Empowerment sub-programme with a final appropriation of R6,527 million spent R6,526 million incurring an under-expenditure of R1 000.
10.3 Programme 3: Monitoring, Evaluation, Research and Coordination The purpose of programme 3 is to ensure policy and stakeholder coordination and knowledge management for the social transformation of women in South Africa.
The programme consists of the following sub-programmes: • Research, Policy Analysis and Knowledge Management: the purpose of the sub- programme is to promote the development of gender sensitive research, position the department as a hub to content relating to the socio-economic empowerment of women, and conduct policy analysis to intervene in transformation for women’s socio-economic empowerment and gender equality.
• Stakeholder Coordination and Outreach: the purpose of the sub-programme is to conduct stakeholder engagements and outreach initiatives to promote empowerment and inclusion of women, youth and persons with disabilities.

• International Relations: the purpose of the sub-programme is to promote international engagements on women, as well as ensure South Africa’s compliance with international treaties on women.
• Monitoring and evaluation: the purpose of the sub-programme is to monitor and evaluate progress on the socioeconomic empowerment of women in line with national laws, and regional and continental and international treaties and commitments.

This programme planned for 12 targets and achieved all (100%).

The programme was allocated R42,5 million as per the ENE 2022.

The final appropriation was R49,319 million (23,6% of operating budget) hence an increase of R6,819 million.
A virement of R1,621 million was recorded this was moved to Programme 4 for Compensation of Employees.

Moreover, R5,291 million was moved from Programme 2 to Programme 3 for Goods and services in addition to R479 000 from Programme 4 also for Goods and services as 29 95 well as R56 000 from Programme 4 for Machinery and equipment.

Hence in total R5,826 million was moved into the programme.
The actual expenditure incurred was R46,699 million which is 94.7% of the total programme budget spent and 23.2% of the operational expenditure.

Notwithstanding the virement, this programme still incurred an under-expenditure of R2,579 million which was due to vacancies which includes but not limited to the DDG: Monitoring, Evaluation, Research and Coordination; the CD: International Relations, Stakeholder Management and Capacity Building and Dir: International Relations.
The key cost drivers for this programme was as follows: • Compensation of Employees accounted for 43.1% of the programme budget (R21,293m) • Goods and Services accounted for 47.7% of the budget (R23,528m) The Management sub-programme had a final appropriation of R1,928 million and spent R1,927 million hence a marginal under-expenditure of R1 000.

Research and Knowledge Management had a final appropriation of R7,687 million and spent R7,501 million also recording a slight under-expenditure of R186 000.
The sub-programme International Relations, Stakeholder Management and Capacity Building had a final appropriation of R30,018 million and spent R27,607 thereby incurring an under-expenditure of R2,411 million.

The Monitoring and Evaluation Women, Youth and Persons with Disabilities with a final appropriation of R9,686 million spent R9,664 million also incurring a slight under-expenditure of R22 000.
10.4 Programme 4: Mainstreaming Youth and Persons with Disabilities Rights and Advocacy The purpose of this programme is to promote good governance regarding the rights and transformation of the social and economic empowerment of youth and persons with disabilities.

The Sub-programmes are as follows: • Management: The purpose of this sub-programme is to advocacy and mainstreaming for the Rights of Youth of Persons with Disabilities: Provides strategic leadership and management to the programme.
• Advocacy and Mainstreaming for the Rights of Youth: The purpose of this sub-programme is to manage advocacy for and the mainstreaming of rights for young people, their social and economic empowerment, and transformation in their interests.

This sub-programme also oversees the performance of the National Youth Development Agency.
30 96 • Advocacy and Mainstreaming for the Rights of Persons with Disabilities: The purpose of this sub-programme is to advocate for and the mainstreaming of rights for the people with disabilities, their social and economic empowerment, and transformation in their interests.

• National Youth Development Agency (NYDA): The department makes transfers to the National Youth Development Agency.

This programme planned for 13 targets and achieved 10 (77%).
The targets not achieved were as follows: • South African Youth Development Bill refined • 2 international youth engagement reports • 1 status report on compliance with national and international obligations on the inclusion of persons with disabilities The programme was allocated R711,8 million as per the ENE 2022 which includes the transfer to the NYDA of R681,5 million.

The final appropriation was R706,932 million hence a decrease.

The operating budget for this programme was R25,667 million.
In terms of Virements, R4.229 million transferred moved out of this programme to Programme 1, 2 and 3 respectively primarily for Goods and services, Transfers and subsidies as well as Machinery and equipment.

Whilst R1.621 million was moved into the programme.

The actual expenditure incurred was R25,660 million (excluding the NYDA transfer) of its allocated programme budget which is 12.7% of the total operational expenditure.
The youth branch spent R9,4 million and the disability branch spent R15,7 million.

Notwithstanding the virement, this programme incurred an under-expenditure of R7 000 (Youth R2000; Disability R5 000).
The key cost drivers for this programme was as follows: • Compensation of Employees accounted for 69.1% of the programme budget (R17.774m) • Goods and Services accounted for 30.4% of the programme budget (R7.804m) 10.5 Human Resources The Department notes in its Annual Report as at 31 March 2023 that it had a vacancy rate of 10.6%, thus 15 vacancies of 141 approved funded posts.

Furthermore, the Department had a 31 97 total of 17 employees additional to the establishment.
In the year under review 10 out 17 posts additional to the establishment were in the Administration programme.

Ten of these posts are on salary band 6-8, while 6 are on salary band 9-12.

In terms of gender, 85/126 staff members are female (67%) and 41 are male (33%).

The majority of females (35) are in clerical positions, while 25 occupy professional positions and 21 fall within the “legislators, senior officials and managers” category.
The majority of males employed in the Department are in “legislators, senior officials and managers” positions (16), followed by 11 occupying professional positions.

The Department employs 5 employees are persons with disabilities (4% of staff complement).

The Department had not identified any critical occupations that need to be monitored as of 31 March 2023.

By the end of the FY 2022/23, the Department had a had a turnover rate of 23.8% as compared to 9.6% in the previous FY.
In terms of people leaving and joining the Department during the financial year, a total of 44 staff left the Department of which 30 of the terminations were contracted positions which expired.

In addition, there were, 10 resignations, 1 retirement, 2 transfers to other public service departments and 1 other.

During the year under review, there was 1 disciplinary hearing relating to gross negligence and insubordination and 8 grievances lodged of which 1 was resolved.
Out of 39 SMS members, 35 had signed performance agreements.

Among the reasons cited for this are invalid/unsigned agreement being submitted, 2 late submissions (subsequently resolved) and 1 on incapacity leave and did not comply (dispute being mediated).

The majority of personnel in the Department’s employ were in the Administration Programme (65), 20 posts filled in Programme 2, 23 in Programme 3 and 18 in Programme 4.
The majority of employees (63) are employed in the Highly skilled supervision salary band (levels 9-12), at an average cost of R608 000 per employee.

45 employees are employed in the Senior and Top Management level (level 13-16), at an average cost of R1,248 million per employee.

Furthermore, 1 staff member was promoted to another salary level, while 94 received notch progressions within their salary level.

The 94 notch progressions were paid in lieu of performance rewards to qualifying employees.
These pay progressions were paid to 68 staff members in salary levels 3 to 12 (71.5% of staff), and to 26 senior management service employees (65% of senior management).

32 98 A total of 103 staff members were identified as needing training during 2022/23, however on 83 underwent training (6learnerships, 51 skills programmes and other short courses, 26 other forms of training.
10.6 Concluding comments on service delivery performance In examining the significant achievements which the Department noted in the 2022/23 Annual Report, the following have been highlighted: • In the year 2022/23, the Department achieved 34 (79%) targets out of 43 planned targets for both original tabled and revised/addendum tabled 2022/23 APP whilst 9 (21%) targets were not achieved.
The performance of the department has declined in the financial year 2022/23 compared to the financial year 2021/22 where it had achieved 95%.

• The majority of targets were achieved in the administration programme (6/7) most of which are compliance matters.

28/36 targets were met in the core programmes (2, 3 and 4).
• The development of the National Council on Gender Based Violence Bill as well as the National Youth Development Agency Amendment Bill and subsequent tabling thereof was a notable achievement.
• Several reports produced including development of the women, youth and persons with disabilities Socio Economic Empowerment Index; development of the Strategy for economic empowerment of women, youth and persons with disabilities; status report on implementation of National Gender Policy Framework (NGPF); status report on the implementation of the Regulatory Framework for women, youth and persons with disabilities mainstreaming; 2 progress reports in the piloting of the Integrated Knowledge Hub; research report on government priorities focussing on women, youth and persons with disabilities; 2 reports on compliance with international and regional instruments on women; 1 monitoring report on the empowerment of women, youth and persons with disabilities; 4 status reports on implementation of women, youth and persons with disabilities International Relations Strategy developed; 2 progress reports developed on the implementation of the women, youth and persons with disabilities stakeholder management framework; 4 National Youth Policy monitoring reports; 4 NYDA quarterly monitoring reports; 1 awareness raising report developed on the 33 99 Awareness Raising Framework, the Self Representation Framework, the Reasonable Accommodation Framework and the Universal design and access framework; 1 analysis report on draft Annual Performance Plans for all national Government departments; 1 draft evaluation report on the implementation of the White Paper on the Rights of Persons with Disabilities and 1 status report on the
 disability rights monitoring tool • 4 interventions to support economic empowerment and participation of women, youth and persons with disabilities • 7 interventions to support social empowerment and participation of women, youth and persons with disabilities • 12 national departments monitored on the implementation of the National Strategic Plan (NSP) on Gender-Based Violence and Femicide (GBVF) • 2 Gender, youth and disability rights (GEYODI) machineries convened • 4 interventions to support economic empowerment, participation and ownership for women, youth and persons with disabilities • 93.75% of national departments implementing the Gender Responsive Planning Budgeting Monitoring Evaluation Auditing Framework (GRPBMEAF) • 1 evaluation conducted on empowerment of women, youth and persons with disabilities • 12 stakeholder engagements on the empowerment of women, youth and persons with disabilities • 4 community mobilisation initiatives on the rights of women, youth and persons with disabilities coordinated • 4 National Youth Machinery meetings convened 10.7 Summary: Finance and Service Delivery Performance Assessment This section provides a synopsis of the service delivery performance against spending patterns for 2021/22 – 2022/23 as well as the 1st quarter of 2023/24 of the Department.
10.7.1 General commentary The Department has seen a slight decrease in performance since its inception as reflected in Table 7 below.

Notwithstanding that, there have been longstanding matters that have not been resolved and as such targets not achieved.

Whilst several of the policies have been finalised, the implementation and popularisation in this regard has been lacking.
The under-expenditure incurred has decreased but is still notable so too is the Department’s heavy reliance on consultants to help achieve its core targets.

Furthermore, the achievement of targets has not 34 100 translated into visible, tangible differences to the lives of women, youth and persons with disabilities in the country.

Developments in the policy and law reform arena for the Department is welcomed as several policy frameworks have been developed and two tabled in Parliament.
Notwithstanding that, a key piece of legislation is the Disability Rights Bill for which progress in this regard has been very slow.

Table 7: Targets Achieved per programme 2019/20 – 2021/22-2021/23 Programme 2019/20 2020/21 2021/22 2022/23 Administration 11/14 (79%) 3/7 (43%) 4/6 (66.7%) 6/7 (85.7%) Admin.
STEE PSCKM NYD RPD Total 5/7 (79%) 6/9 (67%) 10/10 (100%) 6/11(54.5%) MRWA 11/12 (92%) 8/8 (100%) 13/13 (100%) 12/12(100%) MERC 4/4 (100%) 2/4 (50%) 7/7 (100%) 10/13 MYPDRA 1/3 (33%) 5/5 (100%) 5/5 (100%) 32/40 (80%) 24/33 (73%) 39/41 (76.9%) 34/43 (95.1%) (79.1%) 10.7.2 Overview of performance for 2022/23 • When reflecting back on the Department’s performance, 2019/20 FY until 2022/23 performance has generally improved with a marked decline between the year under review and the previous FY 2021/22.
• Programme 1 consistently consumes the greatest proportion of the operational budget.

• Not all Programmes have improved by achieving targets.

Programmes 1, 2 and 4 saw a decrease in performance between this FY and last FY.

A discrepancy was noted in Programme 2 in terms of the number of targets achieved.

The annual report 2022/23 reflected 6 targets achieved whilst the presentation by the Department to the Committee reflected 7 targets achieved.
Hence the overall achievement of what is reflected between the annual report and the presentation made by the Department.

• An under-expenditure was incurred across all programmes more so in the core programmes and of late the administration programme.

Whilst budgets are spent, not all targets are achieved.

• The Department has produced a significant amount of reports undertaken outreach activities, mobilisation initiatives and even interventions for the year under review.
• Whilst the Department makes reference to advances made in the establishment of Rapid Response Teams and producing reports on the implementation of the Sanitary Dignity Framework, the impact of these initiatives have yet to be determined.

35 101 • The Department continues to rely heavily on consultants to undertake the core work and in so doing targets are achieved.
23 of the consultants listed in the annual report for 2022/23 are linked to deliverables within the core programme for a period noted as indefinable at a cost of R5.636 million.

This is 85.5% of the total amount for consultancy as at 31 March 2023.

10.7.3 Overview of budget for 2022/23 • The Department started the financial year with a budget of R987,3 million (including the transfer payments to the Commission for Gender Equality and the National Youth Development Agency).
• During the 2022/23 financial year, the Department would transfer approximately R100,7 million to the CGE and approximately R681,5 million to the NYDA.

This amounted to R782.2 million.

• The Department reports a total of R12,106 million in virements from Programmes 2, 3 and 4 to Programme 1-4.

An internal virement had also been recorded in Programme 2 between sub-programmes.
• When considering the overall expenditure of the Department based on its total appropriation of R991,714 million, it appears that the Department has spent 99.1% or R983,259 million of its budget.

However, when considering the budget less the transfer payments to the CGE and NYDA, i.e.

the operational budget (R209,727 million), the Department has spent 95.9% or R201,272 million of the operational budget.
• When looking at the programme expenditure as a percentage of overall expenditure, % of the budget has been spent on the Administration programme.

Programme 4, the Rights of Persons with Disabilities accounts for only 6.3% of expenditure, while Programme 4, National Youth Development accounts for only % of operational expenditure.
• The total under-expenditure for the year amounts to R8,455 million which was attributed to under-spending on various Goods and services as well as payments for capital assets.

• The key cost drivers remain Compensation of employees (R117,187 million, 58.2% of the Department’s operating budget) and Good and services (R77,666 million).

The latter consumes 38.5% of the operating expenditure – this is an increase from the 25% expenditure in 2021/22.
Expenditure on goods and services has thus increased by over R26 million.

36 102 • No irregular expenditure was incurred for the 2022/23 financial year.

Similarly, no Unauthorised Expenditure and Fruitless and wasteful expenditure was incurred for the year under review.

There was however, historical debt from previous years still on record.
10.8 Overview of budget for Q1 of 2023/2413 • According to the National Treasury 2023 Estimates of National Expenditure (ENE) released in February 2023, the Department under Vote 20, received an annual appropriation of R1 036,4 billion.

The Department also facilitates two transfer payments to the Commission for Gender Equality (CGE) and the National Youth Development Agency (NYDA) respectively.

As such for the 2023/24 FY, the Department would transfer R829.3 million to the CGE and NYDA respectively.
As such the Department is left with an operating budget of approximately R207,1 million to undertake its programmes and meet its targets for 2023/24.

• The Department spent R222.2 million (21%) of its R1.04 billion total available budget by the end of first quarter.

Spending was R2.9 million less than the projected of R225.1 million.

Under-expenditure was recorded in Programme 2 and 4.
• Programme 1 (Administration) spent the highest proportion of its programme budget R28,1 million (28.2%) as well as the overall operational budget (13.6%).

Programme 2 spent R29,2 million (including the CGE transfer) amounts to 23.5% of the programme budget and 2.8% of the total budget allocation.

Programme 3 (MERC) spent the smallest proportion of the operational budget, R9,5 million (4.6%).
Programme 4 (Mainstreaming Youth & Persons with Disabilities Rights and Advocacy) spent R155,4 million - 20.3% of its programme allocation and 15% of total budget allocation which includes the transfer to the NYDA.

• The higher spending in Programme 1 was on was on travel and subsistence ‐ R1.9 million for payment of foreign travel for delegates who attended the United Nations Commission of the Status of Women (UNCSW) in 2022/23.
R1 million higher than projected spending was also recorded on Compensation of employees due to payment of the cost‐ of‐living adjustment for employees in the current financial year.

• Programme 2 recorded lower than projected spending of R2.5 million at this point.

The lower spending of R3 million was on consultants: business and advisory services.
Some 13 National Treasury (2023) Standing Committee on Appropriations, 1st Quarter Expenditure Report 2023/24 Financial Year, Vote 20 Women, Youth and Persons with Disabilities, p.63-64 37 103 of this is intended for salaries and wages of the NCGBVF interim secretariat, will be amended in the adjustment budget.

• Programme 3 recorded higher than projected spending by R1.1 million.
The higher than projected spending was on traveling and subsistence amounting to R3.1 million to settle delayed invoice for transporting public participants for the 16 Days of Activism closing ceremony in North West in December 2022.

• Programme 4 lower than projected spending was recorded on Consultants: Business and advisory services of R585 thousand due to delays in convening the one-on‐one consultations with provinces on the disability automated reporting system.
• The table below outlines the Overall Financial Performance - Per Programme as at 30 June 2023.
Table 8: Overall Financial Performance - Per Programme Programmes Administration Mainstreaming Women’s Rights and Advocacy Monitoring, Evaluation Research and Coordination Mainstreaming Youth and Persons with Disabilities Rights and Advocacy Total Final Appropriation Actual Expenditure as at 30 June 2023 Expenditure as % of Budget R’000 99,6 124,5 47,8 764,5 1 036,4 R’000 28,1 29,2 9,5 155,4 222,2 % 28.2% 23.5% 19.9% 20.3% 21.4% • In Q1 of 2023/24, the Department spent 25.3% (R32,1 million) on Compensation of Employees, 21.0% (R16,1 million) was spent on Goods and services and 13.2% (R500 000) on Payments for capital assets in terms of available budget as reflected in the table below.
Table 9: Overall Financial Performance - Economic Classification (Q1 2023/24) Economic Classification Current payments Compensation of Employees Goods & Services Transfers & Subsidies Payment for Capital Assets Total Appropriation Main Appropriation R’000 203,4 126,9 76,5 829,3 3,8 1 036,4 Actual Expenditure as at 30 June 2023 R’000 48.2 32,1 16,1 173,5 0,5 222,2 Expenditure as % of Budget % 23.7% 25.3% 21.0% 20.9% 13.2% 21.4% 38 104 11.
COMMISSION FOR GENDER EQUALITY (CGE) The CGE briefed the Committee during all the quarterly reports on its finances.

A Commissioner’s report was submitted to the Committee at every quarter.
Based on its constitutional mandate, the CGE’s vision is to strive for “a society free from all forms of gender oppression and inequality”, while its mission includes to “advance, promote, protect, monitor and evaluate gender equality through undertaking research, public education, policy development, legislative initiatives, effective monitoring and litigation”.

Its values are independence; professionalism; accountability; ethical behaviour; and teamwork.
The Commission’s Strategic Framework translates its constitutional mandate into four strategic outcomes as outlined hereafter.

In summary, the CGE set out to achieve 26 targets and achieved 12 (46.1%).

11.1 Strategic Outcome 1 (SO1) The purpose of SO 1 is to evaluate legislation, policies, practices and mechanisms and make recommendations to bring about continuous improvements to advance gender equality.
These has been achieved through the following sub-strategies: (i) To monitor and evaluate the promotion of gender equality and any relevant policies and practices of the public and private sector and report to Parliament.

(ii) To initiate and review for the improvement of the legislative framework in all spheres of government that impacts on priority areas of gender equality.
(iii) To conduct periodic performance assessments of priority Ministries, State institutions, Government departments, political parties and the private sector on the implementation of applicable legislation and policies that impact on gender equality.

(iv) To evaluate the implementation and the effectiveness of the national justice facilities for gender discrimination.
(v) To convene direct dialogues with relevant policy makers at national and provincial level on recommendations to promote gender equality contained in research reports and research activities.

39 105 According to the Annual Report 2022/23, this SO planned for 6 targets and only 2 were achieved (33.3%).
The targets not achieved has been cited below • 40 courts monitored • 144 SAPS and TCCs monitored • 1 CGE Act Amendment Bill • 1 CGE initiated Bill 11.2 Strategic Outcome 2 (SO2) The purpose of this SO is to evaluate legislation, policies, practices and mechanisms and make recommendations to bring about continuous improvements to advance gender equality.

This SO has the following sub-strategies: • To timeously investigate complaints of violations of gender rights and identify appropriate re-dress.
• To initiate investigations of systematic violations of gender rights in the public and private sector and identify appropriate redress.

• To develop a coordinated programme to promote equality.

• To initiate intervention for sustainable development and promotion of gender equality by addressing violations in the social cultural, political and economic security and human rights dimension.
• To collaborate with organs of state, civil society and other institutions for the effective development, protection, promotion and attainment of gender equality.

According to the Annual Report 2022/23, this SO planned to achieve 5 targets of which only 2 were achieved and targets not met are cited below.
• 720 stakeholders reached through Gender and Development Workshops and a report • 540 000 people reached through community radio education and outreach and a report • 4 30 people reach through public education outreach and a report 11.3 Strategic Outcome 3 (SO3) The purpose of this SO 3 is to transform behaviour to respect and uphold gender equality and 40 106 to further ensure effective and efficient social justice for victims of gender violations.
This has been achieved through the following sub-strategies: • To conduct annual reviews and audits of state compliance with obligations under the conventions, covenants and charters and to report a regular basis to Parliament and the Office of the Speaker of Parliament.

• To interact with and report to national, regional and international bodies on state compliance with conventions, covenants and charters acceded to or ratified.
According to the Annual Report 2022/23, this SO planned to achieve 4 targets and achieved all.

11.4 Strategic Outcome 4 (SO4) The purpose of this SO 4 is to build and sustain an efficient organisation, to effectively promote and protect gender equality.

According to the Annual Report 2022/23, this SO planned to achieve 11 targets and 4 (36.3%) were only achieved, targets not met are cited below.
• 75% implementation of defined organisation effectiveness • 100% audit action plan of the previous FY • 1 costed business plan submitted to National Treasury for funding • 100% risk mitigation plan implemented • 75% implementation of the business model • 100% expenditure on planned improvement initiatives • 100% compliance with legislative requirements identified in the compliance universe 11.5 CGE’S BUDGET FOR 2022/2314 14 Levendale, C (2023) Commission for Gender Equality 2022/23 Annual Report Overview and Analysis, Parliamentary Research Unit, 12 October 2023 41 107 For the 2022/23 financial year, the CGE receives an allocation of R100,7 million through the transfer payment via the Department of Women, Youth and Persons with Disabilities.15 Notwithstanding that, the CGE’s total revenue income amounted to R102 166 967 million on account of the transfer from the Department plus R1 266 717 million accrued from interest and sundry income in addition to R178 259 from public contributions and donations.
Approximately 58.4% of the budget is allocated for on Compensation of Employees, while 33.7% was allocated towards Goods and Services.

The Commission has repeatedly reiterated that it is a “human capital driven” institution, with its employees carrying out the bulk of its services, and as such the bulk of its funding is allocated for compensation of employees.

SO 4, which is the outcome focusing on the operations and systems of the Commission, receives the largest proportion of the budget (42.4%).
For the year under review, the CGE spent R94 865 629 million (92.8%) of its budget and thus incurred an under-expenditure of R7 301 347 million (7.1% of the annual budget).

Compared to the previous FY in which the CGE incurred an under-expenditure/surplus of R14.2 million (15.4% of the annual budget).

The under-expenditure has slightly improved.


The reasons noted for under- expenditure were as follows: • An under expenditure on personnel costs due to positions that were vacant and not filled in the year under review, including Commissioners four positions vacant for four months when the old term ended in October 2022 and new appointments started in March 2023.
• Other vacancies include: Head of Legal Department, Head of Parliamentary Liaison Unit, Chief Financial Officer, Head of Public Education and Information, Head of Research and a middle manager position that were vacant in the first quarter of the financial year.

• In addition, interest and surplus earnings, as well as donor funding contributed to increased revenue.

The CGE spent R6 170 977 on Commissioners and Governance; R28 362 926 on Corporate Support Services and R50 400 895 on Service delivery.
This amounts to 92.8% (R94 865 629m) of the total revenue (R102 166 976m) for the year under review.

The CGE had 101 funded positions for the year under review and a total of 87 employees as at the end of March 2021.
15 Ibid 42 108 The Key Cost drivers at the end of the FY were as follows: • Local Travel (R5 657 342) • Legal fees (R 5 592 151) • Conference and seminars (R4 473 027) • External Auditing Fees (R2 885 299) • Report writing, printing and publishing (R 2 999 609) • Office cleaning, Maintenance, Plants and Security (R2,439 672) Together the aforementioned cost drivers amounted to R19 737 978 million (58.9%) of the total Goods and Services expenditure.
The Commission also reports that in terms of spending on Consultants, the following was incurred for Consulting and professional fees for 2022/23, R1 937 346 million.

These are mainly short term, less than 12 months as per assignment/ need, such as co-sourced internal audit services, Sage financial system support, ESS (Leave management system) support services and professional design of formal reports.
In terms of irregular expenditure, the Commission recorded R 1 002 420 million for the 2022/23 in contravention of the PFMA.

The greatest amounts are as a result of the following: • Salaries for Commissioners’ PAs - incurred in contravention of Recruitment Policies (R508 391).

• Legal Panel-Awards made to legal panel members in contravention with PPPFA regulation (R327 205).
Investigations are currently underway to determine liability and effect additional measures to strengthen systems of internal controls in a manner of enabling the commission to fulfil its obligations The Commission recorded R1 450 468 million in its financial statements with regard to Fruitless and Wasteful expenditure which related to the following: • R1 012 273 million was incurred in the current year in respect of payments made to Part-time Commissioners as retainer with no timesheets submitted to vouch for actual time of the remuneration.
The amount was reclassified in the previous year from irregular expenditure to fruitless and wasteful expenditure.

Management obtained a legal opinion from an independent party to confirm the assessment and classification.

Management is awaiting an assessment outcome from National Treasury-Office of the Accounting General.

43 109 • R205 600 was incurred as a result of a policy change on Medical Subsidy for staff not communicated to payroll office due to exit in management.
• R58 236 was incurred as a result of a policy change on Housing Subsidy for staff not communicated to payroll office due to exit in management.
• R132 400 was incurred as a result of staff member who incurred an accident on the 17th of August 2022 from a hired motor vehicle to attend the SALGA event as per invite and third party liability was imposed to the Commission With regards to the above, the Audit and Risk Committee notes the following: These findings were reported as recurring pointing to a slow response in preventing the cause of Fruitless and Wasteful and Irregular Expenditure at the CGE.
The CGE had not addressed the irregular expenditure on the award of contracts that were unduly split to avoid procurement regulations, and the payment of salaries to employees who were appointed contrary to recruitment policies.

Other instances of non-compliance involving failure to pay a signed contract and failure to obtain the required number of quotations were identified and these led to irregular expenditure.
In terms of spending in the Commissioners Programme, R7.822 million was spent on salaries and wages.

11.6 Human Resources The CGE had a total of 96 employees as at the end of March 2023, of which 4 were temporary or intern positions.

It indicates 110 funded posts and 16 vacancies, resulting in a vacancy rate of 15 percent.

The vacancy rate has increased from 19% to 15% year on year.

Furthermore, the CGE reports only 1 post that is unfunded and additional to the establishment – in 2020/21 there were 8.
In addition, 4 staff members are employed on a temporary or internship basis.

30 appointments were made during the 2022/23 financial year, while 19 staff left the Commission.

Five of these relate to resignations, while 8 contracts expired.

Moreover, the Commission reports that in terms of skills development, 33 staff members received training during this financial year.

This is an improvement from the 18 staff in 2021/22.
With respect to Performance bonuses: A total of 60 staff members received performance related rewards in 2022/23, amounting to R 2.29 million.

44 110 12.

NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA)16 For the year under review, the NYDA briefed the Committee on all 4 quarterly reports.

The quarterly reports included a focus on programme performance and financial health of the entity.

Moreover, the NYDA tabled its Annual Report on time and briefed the Committee with its Audit Committee on 17 October 2023.
In the period under review the NYDA had 29 targets of which all were achieved.

This amounts to a 100% achievement of the planned targets in its Annual Performance Plan.

The performance of the NYDA has remained fairly consistent over the last nine years.

The next section examines the performance of the NYDA for each Programme in light of the Annual Report 2022/23.
12.1 Performance per Programme 12.1.1 Programme 1: Administration The purpose of this programme is to enable effective and efficient Agency capabilities for good governance and ethical leadership to support service delivery.

Its key outcome is an efficient and effective Agency characterised by good corporate governance and ethical leadership.

This programme achieved 11 targets of which 3 targets were met and exceeded.

The achievements were as follows: 1.

4 NYDA Quarterly Management Reports 2.


Reviewed and Implemented Annual Workplace Skills Plan 3.

R 150 million in funds sourced from the public or private sectors to support youth development programmes 4.

6 SETA5 partnerships established 5.

2 partnerships signed with technology companies 6. Review and implement ICT Strategic Plan indicating 75% achievement of ICT targets in the plan by end of the financial year 7. Review and implement Integrated Communication and Marketing Strategy 8.
Produce and approve the NYDA Strategic Risk Register by Ops Exco 9.

Reviewed annual SCM Procurement Plan and produced quarterly reports 16 Matthews, T (2022) National Youth Development Agency (NYDA) Annual Report 2021/22 Review, Parliament Research Unit 45 111 10.

Annual Report on partnerships established with Disability organisations to promote youth development 11.
100% implemented and monitored ERP (enterprise resource planning) modules in all NYDA platforms 12.1.2 Programme 2: Programme Design, Development and Delivery (PDDD) The purpose of the programme is to enhance the participation of young people in the economy through targeted and integrated economic programmes, including skills and education programmes, and national youth services.
Facilitate and co-ordinate the effective and efficient implementation of the Nation Youth Service Programmes across all sectors of society.

This programme achieved 14 targets of which 12 targets were met and exceeded.

The achievements were noted as follows: 1.

2000 youth owned enterprises supported with financial interventions 2.

25 000 youth supported with non-financial business development interventions 3.

6200 jobs created and sustained through supporting entrepreneurs and enterprises 4.
1000 beneficiaries supported with business development support services offered to young people by NYDA 5.

Participate on the National Pathway Management Network to facilitate youth job placement opportunities 6.

75 000 young people capacitated with skills to enter the job market 7.

10 000 young people placed in jobs 8.

60 organisations and departments lobbied to implement NYS 9.

Produce an annual report on the NYS Programme 10.

11 000 young people participating in NYS Expanded Volunteer Projects 11.
7 000 young people participating in CWP (Community Work Programme) programmes 12.

35 000 young people securing paid service opportunities 13.

20 000 young people who have completed planned service activities 14.

7 000 young people transitioning out of the National Youth Service (NYS) into other opportunities 12.1.3 Programme 3: Integrated Youth Development 46 112 The purpose focuses on fostering a mainstreamed, evidence based, integrated and result oriented youth development.
This programme achieved all 4 targets.

The achievements were noted as follows: 1.

4 impact programme evaluations conducted 2.

Produce annual report on Integrated Youth Development Strategy 3.

3 youth status outlook reports produced 4.

Develop a status of the Youth Report in the country 12.2 NYDA’s Budget for 2022/2317 According to the ENE 2022, the original budget allocation was for R752 million which the NYDA would have received via a transfer from the Department under Vote 20.
During Quarter three, the NYDA had secured additional donor funding to support the internship programme in partnerships with the Public Services Seta, the Department of Public Services and Administration, the CWP Agrarian revolution projects, the FoodBev, Jobs fund and FASSET, increasing donor funding from R74 million to R154 million.

The National Treasury has approved the prior year rollover funds of R420 million.

The overall adjusted annual budget has subsequently increased to R1.2 billion.
As such that included the Departmental transfer of R481 million, Interest income of R16 million, donor income of R161 million, the Presidential Youth Employment Fund Income (PYEI) of R200 million and the prior year roll-over of R420 million.

The NYDA had a total expenditure of R1 190 478 billion with a deficit of R378 073 million.

In terms of key expenses for the 2022/23, these related to the following as outlined in the table below.
Table 10: NYDA expenditure as at 31 March 2023 Expenditure Administration and overheads Communications and Public Relations Employee Costs Information Technology R’000 59 514 9 394 210 437 25 723 17 Matthews, T (2023) National Youth Development Agency (NYDA) Annual Report 2022/23 Review, Parliament Research Unit, 16 October 2023 47 113 Audits Capacity Building Legal fees Risk Travel Workshops Interest Paid Project Disbursements Impairment, write off, depreciation, amortisation Donor funded expenditure Project disbursements – PYEI – NYS Project disbursements – PYEI – NYS Rollover Total Capital expenditure Contingency reserve Gross expenditure 6 266 13 239 3 638 1 946 46 840 19 112 63 41 879 23 884 113 595 141 052 384 812 1 190 478 30 071 - 1 220 549 The key cost drivers were thus Employee costs, Project disbursements, Donor funded expenditure, grant disbursements and administration and overheads.
The NYDA did not incur nor identify any irregular expenditure during the 2022/23 financial year.

12.3 Human Resources The NYDA had a staff compliment of 515 employees, 503 (97.7%) were permanent and only 12 temporary employees as per the Annual Report of 2022/23.

The majority of staff, 37.9% (195) fell within the skilled technical occupational level with only 18 employees in the Executive and Senior management category.
In terms of gender ratio, the NYDA has a dominant female work force 62.3% (321) and 194 males (37.7%).

According to the annual personnel cost by programme, of the 515 people employed by the NYDA, 373 employees are receiving an average R360 000 per annum for 2022/23.

7 employees in the Executive Chair and Deputy Chair’s Office earned an average salary of R1,528 million per annum for the year under review.
Within the CEO’s office there ae 28 employees with an average personnel 48 114 cost per employee of R706 000.

The HR and Legal Services have 13 employees with an average salary of R967 000.

During the year under review a total of 186 employees left the NYDA, 159 employees left due to the expiry of contracts, 1 was dismissed, 24 resigned and 2 retired.
In terms of the bursary programme, during the period under review, a total of Eighty-one (81) employees were funded in the NYDA bursary programme for undergraduate and postgraduate studies in the 2022 academic year.

In support of diversity, inclusion, and transformation imperatives of the NYDA, 47 black females, one (1) coloured female, one (1) white male, three (3) coloured males and 29 black males benefited from the programme.

13.
13.

FINDINGS OF THE AUDITOR GENERAL OF SOUTH AFRICA (AGSA) The Department has received an unqualified audit opinion from the Auditor-General of South Africa (AGSA), with findings on expenditure management and compliance with legislation, specifically in relation to consequence management and internal control deficiencies.
To this end, the AGSA highlighted the following key concerns with regards to the Department: 13.1 Expenditure management • The Department materially underspent the budget by R8,4 million.

13.2 Internal Control Deficiencies • The AGSA noted senior management has not adequately or properly monitored compliance with laws and regulations relating to consequence management.

• In addition, there was not adequate oversight responsibility in relation to compliance and internal controls.
13.3 Consequence management • The AGSA noted a lack of sufficient appropriate audit evidence to indicate that disciplinary steps were taken against officials who had incurred irregular expenditure.

• The AGSA noted an overall slow response by management in addressing and effecting consequences.

49 115 • The AGSA found proper and complete records were not maintained by the Dept.

to conduct investigations into some irregular expenditure.
With regards to the CGE, it received an unqualified audit opinion from the AGSA.

However, findings have been raised on non-compliance with legislation, as well as on internal control deficiencies.

Internal controls were deficient - Leadership exercised inadequate oversight responsibility regarding related internal controls.
The following matters were raised by the AGSA: 13.4 Non-compliance with legislation • No change in overall outcomes, however, there is an increased number of compliance findings for the CGE.

• There were inadequate systems and policies to collate evidence that supports what was reported on, thus the credibility of the Commission is compromised if they are unable to produce quality performance reports that reflect its transparency and accountability on the reported performance targets.
13.5 Internal control deficiencies • There was overall weakness in the control environment due to management instability • There was inadequate consequence management, as some of the findings were repeat.
• Overall, there were weaknesses in internal control environment at the CGE, which requires intervention, this can be attributed to: - Instability at management level - Lack of consequence management - Inadequate reviews on the application of laws and regulations relating to procurement and contract management 13.6 Key areas of concern The AGSA states in the Annual Report that: • The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1) (b) of the PFMA.
• Effective and appropriate steps were not taken to prevent irregular expenditure.

• Effective steps were not taken to prevent fruitless and wasteful expenditure.

• AGSA was unable to obtain sufficient appropriate audit evidence that public money was spent with the approval of the accounting officer.
50 116 • AGSA was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular expenditure, as well as those who incurred fruitless and wasteful expenditure.

• 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.
• Some of the deviations and procurement by other means are not in line with the circumstances provided in the SCM policy under which the procurement can occur as required by PFMA.

• Some of the tenders which failed to achieve the minimum qualifying score for functionality criteria were not disqualified as unacceptable in accordance with 2017 Preferential Regulation.
• Leadership exercised inadequate oversight responsibility regarding financial reporting pertaining to statutory receivables, financial instruments and irregular expenditure disclosures as well as related internal controls.

• Insufficient oversight responsibility was exercised by management with regards to compliance and related internal controls, particularly in the area of expenditure management.
This was due to inadequate record keeping, as the commission did not have the proper recording system to ensure that documents were kept and were available for audit purposes.

This resulted in public monies being spent without the approval of the accounting officer.
• Management did not implement adequate internal controls to ensure that investigations were performed relating to irregular, fruitless and wasteful expenditure incurred in the prior year and to ensure that disciplinary steps were taken against officials who had incurred or permitted the expenditure.
This was due to vacancies and challenges in other administrative matters that would allow for a proper investigation and adequate disciplinary steps against officials who had incurred or permitted the expenditure.

This resulted in non-compliance on matters related to consequence management.

• Insufficient oversight responsibility was exercised by management with regards to compliance and related internal controls surrounding procurement and contract management.
This was due to non-adherence with the supply chain management policy and legislation applicable to the constitutional institution which resulted in the numerous material non-compliances reported in the current year.

51 117 Overall there has been a significant decline in the compliance and governance environment of the Commission for Gender Equality during 2022/23.

With regards to the NYDA, it received 9th clean audit opinion from the AGSA.
Notwithstanding that, the following matters were raised by the AGSA: 13.7 AGSA Findings for NYDA • The NYDA received a ninth consecutive clean audit outcome from the Auditor General of South Africa with zero unauthorized, irregular or fruitless and wasteful expenditure reported or detected.
All of which can be attributed to good internal controls regarding reporting on financial information as well as performance information while ensuring that the agency adheres to all relevant frameworks, laws and regulations.

• The Auditor General’s report stated, no material findings in the agency’s compliance with legislation and the AGSA did not identify any significant findings in the internal controls of the entity.
• From the various reports by the Internal Auditors, the Management Reports and Audit Report by the Auditor-General of South Africa, it is noted that there has been a stabilisation in the internal controls environment which has culminated in the NYDA sustaining the clean audit for the 2022/23 financial year.

• In our review of the Annual Report, including the Performance Information and Financial Statements, the Audit and Risk Committee is satisfied with the content and quality of Annual Report prepared.
Noting that there has been a significant improvement in the compilation thereof.

13.8 AGSA Recommendations The AGSA have considered the Annual Reports of the Department, the CGE and the NYDA recommended the following to the Committee: a) Financial management and reporting matters are prevalent at the CGE as well as non- compliance matters with laws and regulations.
Oversight intervention is required to ensure stability at the Commission and adequate control measures are implemented, including consequence management.

b) Oversight intervention is required to ensure stability at the Commission and adequate control measures are implemented, including consequence management.

c) Stability in leadership level that will improve the overall control environment.

(CGE) d) Enhanced monitoring and oversight on compliance with laws and regulations.
(CGE) 52 118 e) Monitor implementation of consequence management.

(CGE & DWYPD) f) Strengthened internal control reviews by Internal audit 14.

FINDINGS OF THE AUDIT AND RISK COMMITTEE (ARC) The next section is a reflection of the findings of each of the Audit and Risk Committee’s for the Department, the CGE and the NYDA.

14.1.
14.1.

ARC Department The Audit and Risk Committee (ARC) of the Department of Women, Youth and Persons with Disabilities noted the following findings and recommendations as contained in the Annual Report for 2022/23: “The Audit and Risk Committee has reviewed the Annual Financial Statements and the Annual Performance Information for the year ended 31 March 2023 and duly recommended them for the Accounting Officer's approval prior to submission to the AGSA for audit.
The Committee commends Management on the actions taken to improve financial and performance reporting which has resulted in the department receiving an unqualified audit opinion with no material findings in these areas.” 14.1.1 Effectiveness of Internal Controls • The Audit and Risk Committee (ARC) concludes that the system on internal controls for the reporting period was generally adequate and effective.
14.1.2 Internal Audit • The ARC is not satisfied with the human resource capacity within the Internal Audit Unit.

It notes that capacitation within the Unit must be prioritised to ensure a wide risk and audit coverage in the Department.

Failure to do so may have a negative effect on the effectiveness of the internal Audit function.
14.1.3 ICT 53 119 • The ARC noted that inadequate human and financial resources remained a challenge that prevents the ICT unit to function at a level that adequately supports the Department to achieve its programmes.

14.1.4 In-Year Management and Quarterly Reports (IYMQR) • The ARC reviewed the quarterly reports prepared and issued by the Accounting Officer of the Department during the year under review, and was satisfied with the quality of reports presented/submitted.
14.1.5 Staff shortage • In addition, management reported to the Audit and Risk Committee that the Department is seriously short staffed across all the programmes and this situation has an adverse impact on the ability to adequately execute the mandate of the Department as well as the implementation of governance processes.

These challenges were also highlighted during 2021/22.
• The ARC acknowledged Management’s concerns about the shortage of staff within the Department across all programmes which in turn has an adverse impact on the ability to adequately give effect to the mandate of the Department including governance processes.
To this end, the ARC stated that it hoped that the revised organisational structure would receive the concurrence from the Department of Public Service and Administration and the funding from the National Treasury in order to fill the proposed vacancies.

14.1.6 AGSA Report • The ARC concurred with and accepted the findings of the AGSA on the AFS and Performance Information of 2022/23 for the Department.
14.1.7 Audit Action Plan • The ARC also monitored the implementation of the action plans to address matters arising from the Management Report issued by the AGSA for the 2021/22 financial year.

The Committee is generally satisfied with the progress made in resolving audit findings, but remains aware of the following findings that were not resolved: (i) (ii) Gap on the segregation of duties in the ICT unit due to inadequate human resources.
Conclusion of irregular expenditure consequence management application for condonation and removal of irregular expenditure not done within the financial year.

54 120 • The ARC will monitor the implementation of the Audit Action Plan by Management as per the audit findings identified during the 2022/23 FY.
14.2 ARC CGE With respect to the CGE, its ARC noted the following: 14.2.1 Key issues of concern • The recurring irregular, fruitless and wasteful expenditure and other non-compliance events detected by the audit are concerning.

• The audit committee notes the consistent inability at the CGE to produce credible quarterly reports on performance information.
Internal audit had in the year under review, performed audits to verify the accuracy, validity and completeness of actual performance reported against selected indicators.

The pervasive audit findings in these reports were the failure by management to provide evidence supporting the actual performance reported, in other instances management had reported actual performance that did not accurately reflect on the source document.
• The ARC notes a further a control breakdown in leadership, which hindered the works of the audit committee to oversee the organizational performance management in quarter three and quarter four.

The Audit committee was unable to review and obtain responses from management in the assessment of quarter two given the responsible official was not present at the meeting.
The audit committee was further unable to follow up on the third quarter report and review the 4th quarter report since the then CEO did not submit to the committee the report for the fourth quarter.

• The ARC notes a deficiency in the planning, performance & reporting on strategic objectives linked to the mandate of the CGE, which are included in the APP.
14.2.2 ARC Recommendations for CGE In terms of recommendations to improve audit outcomes on predetermined objectives, as well as general performance, the ARC recommends: • A review of the selection criteria applied in the appointment of the person occupying the position of CEO.
The appointment process to be undertaken should enable the CGE to select a person with the requisite appreciation of the regulatory systems governing the works of the 55 121 CGE and the nature of the commission as a chapter 9 institution in the constitution of the republic of South Africa.
A person with an appreciation of the strategic roles and responsibilities of the CEO, and who will cascade a culture of excellence and mentoring to ensure that the CGE profits from the talents of the many dedicated members of staff in the organization.

• A need to strengthen coordination of performance reporting, to ensure that internal checks are regularly performed on all accountability documents.

The CGE should assign a dedicated person who will facilitate performance planning and reporting.
The person shall perform checks on the quality of information submitted, completeness of reports and in year consistency of reported performance.

The responsibility to deliver performance on operational targets included in the APP should be assigned to the executive management under the leadership of the CEO.
• Review the remuneration basis applied for compensating the works carried by commissioners, rewards must be consistent with their duties and the applicable legislation, be competitive to attract and retain skilled individuals and where the remuneration includes a variable element linked to performance, conditions for the variable element should be stipulated in an approved policy or procedure document 14.3 ARC NYDA With respect to the NYDA, its ARC noted the following: • The Audit and Risk Committee is satisfied that it has fulfilled its responsibilities as per the Audit and Risk Committee Charter, by inter alia, playing the necessary prescribed oversight on the maintenance of a sound internal control and risk management systems within the NYDA.
15.

COMMITTEE’S OBSERVATIONS Having interacted with the Department, the AGSA, the NYDA and the CGE, the Committee made the following observations: Observations with respect to the Department of Women, Youth and Persons with Disabilities 15.1 General 56 122 a) The Committee commends the Department, the NYDA and the CGE for tabling the Annual Reports within the specified time.

b) The Committee observed that the Annual Report reflects 34/43 targets met which is a 79% overall achievement.
A slight decrease in performance was noted from 95% in the previous FY 2021/22 to 81% in 2019/20 which was noted with concern.

c) The Department spent 95.9% (R201,272 million) of the budget (i.e.

its operating budget of R209,727 million) with a surplus/under-expenditure of R8,455 million.

This underspending decreased from R31 million in the previous financial year 2021/22 to R8,455 million in the current FY.
Whilst the decrease in under-expenditure is acknowledged, the recurrence of under-spending is concerning.

d) The Committee observed that of the total appropriation as per Vote 20 (R991.714 million) which included the transfers to entities, 99.1% (R983.259 million) was spent.

e) A decline in the performance of Programme 2 was noted with concern for the Committee.
The majority of the targets met in Programme 1 relates to compliance matters in terms of the development and submission of reports, however, it remains a concern that it continuously consumed the largest proportion of the Department’s operational budget and staff compliment.

f) The Committee noted with concern the Department’s continued reliance on consultants.

g) The Committee concurred with all of the findings and recommendations of the AGSA and the ARC.
h) The Committee observed that the Department was not effectively implementing the AGSA recommendations and those of the ARC, hence the repeat findings.

The Committee raised this as a major concern.

15.2 Mandate, Mission and Vision a) Mandate: The Committee questioned how the Department’s new mandate as a Regulator was given effect to in 2022/23 and how this related to visible change on the ground for women, youth and persons with disabilities.
Moreover, the Committee questioned how the Department contributed towards eliminating poverty, reducing inequality and unemployment with particular attention to women, youth and persons with disabilities for the year under review.

b) Strategic Priorities: The Committee noted that the Department did not reflect on what progress it has made in light of the goals outlined in its Strategic Plan given that it was coming to the end of a 5-year term.
There was little to no information provided by the 57 123 Department in this regard in the Annual Report for 2022/23.

Whilst the reflections of the Department’s intent for 2023/24 outlined in the Annual Report was noted, this information was best placed for the next Annual Performance Plan.

The Committee observed what was missing was a holistic assessment of the Department’s progress insofar as the goals are concerned as outlined in its Strategic Plan.
c) Policy imperatives: The Committee asked what was the Department’s assessment of how Government has performed insofar as the various goals and targets related to women, youth and persons with disabilities as outlined in the NDP, MTSF, SDG 5 and Agenda 2063.

Even though reference is made to the aforementioned in the Annual Report 2022/23 it is only limited to providing a policy context but what was not evident is the Department’s assessment of what progress Government has made in this regard.
d) Visibility of Department: The Committee was concerned about the effectiveness of the Department’s Communication Unit as the Department’s website had been down.

This hindered the availability and accessibility of information to the public which was concerning to the Committee.

15.3 Policy and Law Reform a) The Committee welcomes the review of the NGPF which is an important overarching framework for the country.
b) The Committee observes that the Disability Rights Bill is long overdue and has been in development for the entire 6th administration which was concerning.

c) The Committee observed the lack of progress made regarding the South African Youth Development Bill.

To date the Committee received one briefing on this Bill.
15.4 Performance of Programme 1: Administration 15.4.1 Overview of Programme 1 Performance a) The Committee observed that in Programme 1, 85.7% (6/7) of its targets were achieved and 95.4% of its budget was spent.

b) This programme continued to have the largest staff cohort within the Department – 65 posts filled with 10 posts additional to the establishment and 9 vacancies.
15.4.2 Human Resources 58 124 a) Skilled personnel vs Lack of capacity: The Committee observed that of the 126 filled posts in 2022/23, 45 officials are in senior management, while 56 fell within the highly skilled production and 63 within highly skilled supervision category.
As such, 164 employees within the Department, are meant to have the requisite skills to function at a high end level given their employment ranking to be able to give effect to the Department’s mandate and achieve the goals it has set out.

However, the Department maintains that it has a lack of capacity, and is reliant on consultants, yet continues to underspend on Compensation of employees by not filling vacancies.
Furthermore, the Committee observed that 1 staff member was promoted to another salary level while 94 received notch progressions within their salary level.

These pay progression were paid to 68 staff members in salary levels 3- 12 which amounts to 71.5% of staff and to 26 senior management service employees (65% of senior management).
b) SMS cost: The Committee observes that for the year under review, Senior Management constituted 48% (R56,221 million) of the personnel cost and the highly skilled supervision (levels 9-12) 32.7% (R38,302 million).

c) Gender parity: The Committee observed that despite a predominantly large female workforce (67%, 85/126), the majority of women (35) are in clerical positions, while 25 occupy professional positions and 20 fall within the “legislators, senior officials and managers” category.
Furthermore, the majority of males employed in the Department are in “legislators, senior officials and managers” positions (17), followed by 12 occupying professional positions.

d) Use of consultants: The Committee noted that the Department continued to procure the services of consultants (116) during the year under review for 16 projects amounting to R6,590 million.
This was concerning given that the Committee consistently discouraged the Department from using external service providers given its limited budget.

This was up from 33 consultants in the previous financial year for 8 projects.

What this demonstrates is the Department dismissing the recommendation from the Committee in this regard.
The reliance on service providers is disconcerting for the Committee given the large number of highly skilled professionals and senior managers (164 in total) in the Department as noted previously.

The Committee noted with concern that the projects doubled, triple the number of consultants were utilised most for an indefinable period and at 3.5 times the cost as compared to the previous FY.
Moreover, 23/116 consultants worked on projects related to the core programmes for which there are personnel employed be it limited.

Furthermore, the Committee also noted with concern that despite the explanation provided by the Department for why the services of consultants were procured there was no indication of 59 125 what transfer of skills took place, if any, to capacitate Department officials within these projects.
e) Vacancies: The Department observed a vacancy rate of 10.6% which was slightly more than the targeted 10%.

The increase in the vacancy rate from the previous FY was noted with concern.

The Committee notes the Department’s reference to 18 additional posts that were identified to be created and filled from the increased allocation.
To this end, the Committee observed that the Department had not identified any critical occupations that need to be monitored as of 31 March 2023 which is concerning given the concerns raised by the ARC and the AGSA w.r.t critical vacancies in Internal Audit, Risk Management and ICT.

The Committee also reiterated the importance of labour representation within the recruitment process.
f) Disciplinary cases: The Committee noted that there was 1 disciplinary hearing initiated and 8 grievances lodged of which only 1 was resolved.

g) HR policies: The Committee sought clarity about the Department’s policies related to contract work, reasonable accommodation and outstanding policies as well as the involvement of unions in the review processes.

The Committee noted the progress made but urged HR to finalise these policies and ensure that staff are made aware of them.
15.4.3 Financial performance a) Under-expenditure: The Committee noted with concern the R8,512 million under- expenditure for a department with a small operational budget claiming it is underfunded.

Whilst noting the reasons for the under-expenditure for each programme, the Committee remained resolute that surplus for the Department was significant given its limited budget, the lack of visibility on the ground and questionable impact on the lives of the most vulnerable in the country.
Furthermore, having assessed the Department’s Q1 performance for 2023/24 whilst slight improvement was noted the continued under-expenditure in certain programmes is of particular concern.

b) Roll-over funds: The Committee notes the Department’s request to National Treasury for a total R8,512 million in roll-over of funds related to fund payments for capital assets, ICT migration, a radio show and continuation for the implementation of the NSP on GBVF.
c) The Committee observed that the Irregular Expenditure incurred to the amount of R41.712 million related to previous financial years and that the Department was currently investigating R20,4 million of the expenditure incurred.

The Committee noted with concern that R719 000 of Irregular Expenditure was incurred for the year under review.

60 126 This was related to an award for a bid that was not approved by the delegated official.
The Committee observed that the Department indicated that an internal control checklist will be reviewed to strengthen the verification of transactions on award.

However, the Department stated in its previous annual report for 2021/22 that new policies on irregular, wasteful and fruitless expenditure were developed and approved during November 2021 to enhance compliance and prevent the occurrence of irregular expenditure.
Hence this demonstrates that despite the development of policy, internal control measures are still weak which is concerning.

d) The Committee commends the Department for not incurring any Fruitless and wasteful expenditure during 2022/23.

However, the Committee observed previous expenditure of R11,787 million is still on record and is currently with the State Attorney to investigate and consider possible recovery of funds.
e) The Committee observed that the Department did not incur any Unauthorised expenditure during 2022/23 which is commendable.

However, there is unauthorised expenditure from previous years that is awaiting authorisation.

This amounts to R32.774 million.

f) Virements: The Committee observed virements totalling R12,106 million of which R4,575 million was shifted into Programme 1, R19 000 into Programme 2; R5,826 million into Programme 3 and R1,621 million into Programme 4.
Furthermore, R6,191 million was moved out of Programme 2 to Programme 1 and 3 for Goods and services and machinery and equipment.

R1,621 was moved out of Programme 3 into Programme 4 for Compensation of employees.

R4,229 million was moved out of Programme 4 to Programme 1, 2 and 3 for Goods and services, Transfers and subsidies and machinery and equipment.
g) Deviations: The Committee noted with concern the 37 deviations by 31 March 2023 reflected as “procurement by other means” amounting to R23,394 million.

This was a marked increased as compared to the previous FY 2021/22 where the Department had 20 deviations, amounting to R1,929 418 million.

Of these deviations 15 were single source appointments and 22 related to obtaining less than 3 quotes for amounts more than R2000.
Of these 15 related to venues and catering, which points to poor planning as the Department should be aware at the start of the FY which activities will be taking place when and where in order to plan in advance.

In addition to the deviations, there were also 9 instances of contract variations and expansions which was concerning.

The Committee also observed that only 8 of the Department’s deviations were recorded with the Office of the Chief Procurement Officer, and none of its.
contract variations or expansions.

In addition, of the 8 recorded deviations, 2 were not recorded in the Annual 61 127 Report.

These relate to vehicle insurance for 6 BMW motor vehicles.

In addition, no start or end dates for contracts are recorded.

The deviation relating to the HSRC also indicates that there were no reasons provided for the deviation.

The Committee raised these matters as a concern with the Department.
h) Donor funding: The Committee observed that the Department received R23,214 million from the European Union of which it spent R621 000.

This donation forms part of a total funding amount of R109,349 182 million that has been allocated from 2021/22 to 2023/24.

The Committee sought clarity about how the donor expenditure was audited against the required deliverables.
Furthermore, the nature of the donor funding from the EU was to secure additional resources – equipment and personnel - but it is unclear how this was not a duplication of services and if not, how sustainability will be ensured beyond the funding period stipulated.

15.4.4 Investigations & Consequence Management a) The Committee noted with concern the AGSA and ARC repeat findings regarding consequence management.
The AGSA noted that it was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular expenditure.

This was attributed to a lack of proper and complete records being maintained by the Department to conduct the investigations into irregular expenditure.
b) In light of the concerns raised by the Committee in the previous financial year more specifically the BRRR 2022, whereby Committee reiterated that it was the role of the DG to ensure consequence management was implemented and that she would be held to account accordingly for failing to perform her duties if this was not attended to, the failure of implementing consequence management is of serious concern and requires urgent attention.
15.4.5 Supply Chain Management (SCM) a) The large number of deviations are a cause of concern and points towards poor planning in supply chain- this despite the Committee being reassured in the previous FY that a new SCM policy was developed and approved.

15.4.6 ICT 62 128 a) The Committee noted with concern the ARC’s finding that inadequate human and financial resources remained a challenge that prevents the ICT unit to function at a level that adequately supports the Department to achieve its programmes.
b) The Committee also notes with concern the unresolved audit finding regarding the gap on the segregation of duties in the ICT unit due to inadequate human resources.
c) The Committee notes a roll-over request was made for R1 million on the support and maintenance project for Microsoft, R600 000.00 for the payment of the Microsoft License and R1.767 million for the installation of the Information Communications Technology (ICT) infrastructure as part of the relocation of the Department to the new premises.

15.5 AGSA & ARC 15.5.1 AGSA Findings and Recommendations a) The Committee concurred with the findings and recommendations of the AGSA.
b) The Committee notes the AGSA section in the AR for the Department had typographical errors i.e.

references to pages incomplete (e.g.

pages xx-xx cited on p.110).

c) Repeat findings: The Committee noted with concern the repeat findings by the AGSA and the repeated calls by the Committee itself for the Department to address particular matters.

This was unacceptable and required urgent attention.
d) Compliance: The Committee noted with concern the repeat finding of non-compliance with legislation as identified by the AGSA as well as those related to internal control deficiencies.

e) Lack of consequence management: The Committee noted with concern the AGSA and ARC finding which relates to the lack of consequence management.

This too is a repeat finding.

f) Scope of audit: The Committee welcomes the audit of Programme 2 and 4 of the Department.
The concern of the Committee related to the nature of the audit and the enforcement of recommendations as both the findings and recommendations are a repeat of the previous financial years which points to little to no improvement by the Department in this regard.

g) Relationship with ARC: The Committee enquired about the working relationship of the AGSA and the ARC’s of the Department, NYDA and the CGE.
Given the various concerns raised by the Committee and repeat findings with lack of implementation of particular recommendations, the Committee was concerned that the enforcement by the AGSA and ARC on its recommendations was not strong enough.
h) Outcomes of Performance Audit: Based on the AGSA’s audit of the entities in the portfolio, the Committee acknowledged the AGSA’s opinions expressed regarding the impact of the 63 129 Department, the NYDA and the CGE in light of the targets achieved and budget spent for the FY under review.

However, the Committee questioned the AG’s finding regarding the instability of management within CGE and requested clarity on the matter.
The Committee queried what actions were taken against people who were responsible for irregular expenditure as the concern was that nothing was done to address these issues.

As such, the Committee was concerned about about the prevention of irregular expenditure and that there were no steps taken to prevent this issue as in the case with the CGE.
The Committee was concerned that the AGSA had an opinion on senior management of the CGE however this was not the case with the Department of Women, Youth and Persons with Disabilities or the NYDA.

Hence the Committee questioned whether the tool utilised to conduct an audit on the Department and entities is the same.
To this end, the Committee was not sure whether AGSA indicated that the Department was doing well at senior management when in fact it was reported that the Department awarded contracts without following proper processes and there was a DDG who was paid but not performing the required duties in the Department all of which points to concerns pertaining to management.
The Committee was also concerned that some deviations made by the Department were not registered with the Office of the Chief Procurement Officer (OCPO), National Treasury and enquired whether the AGSA checked these during the audit process.

i) Donor funding: The Committee noted with concern the lack of information from the AGSA regarding donor funding received by Department, NYDA and CGE and expenditure in this regard.
The Committee indicated that an assessment of donor funding was important given that it was linked to almost all of the core programmes.

j) Whistle-blower allegations regarding the NYDA’s CEO: The Committee noted that the AGSA was appraised on the matter, that it formed part of the audit and awaited the outcome of the investigation.

15.5.2 Audit and Risk Committee (ARC) a) The Committee acknowledges the findings and recommendations of the ARC and that it concurs with that of the AGSA.
b) Internal Control: The Committee notes the contradiction between the AGSA finding pertaining to “significant internal control deficiencies that resulted in the basis for the opinion and, the material finding on compliance with legislation” and that of the ARC finding that the system on internal controls for the reporting was generally adequate and 64 130 effective.

This brought into question how the ARC and the AGSA reconciles on matters.
Furthermore, given that the ARC proposed in the previous FY that monitoring of compliance with applicable laws and regulations, specifically on investigating the irregular expenditure incurred in the previous financial years required improvement along with budget monitoring and ICT (service continuity and security controls), it raises questions about the enforcement of the recommendations proposed as these matters have still not been resolved.
c) Internal Audit: The Committee notes the repeat finding of the ARC regarding limited human resource capacity of the Internal Audit Unit and that it should be addressed as a matter of priority.

Despite the call from the ARC that it should be prioritised by the Department this has not been done which is concerning.

d) Risk management: The Committee notes the repeat finding by the ARC that the Risk Management was under-resourced.
e) IYMQR: The Committee notes that ARC satisfaction with quality of the monthly and quarterly reports and the suggestions for improvements in relation to these and ICT.

f) AFS and API: The Committee notes the ARC commended Management on improving financial and performance reporting which in turn resulted in an unqualified audit opinion with no material findings in this regard.
g) Compliance with legislation: The Committee notes the ARC concern that even though the Department complied with the applicable legislative framework, it did not request condonation and removal of irregular expenditure incurred in the prior financial years from National Treasury by 31 March 2023.
Furthermore, the Committee notes that the ARC’s concern that even though the Department implemented consequence management against officials there were still outstanding transactions where the determination of facts could not be performed because the records could not be traced within the Department.

The issue of lack of records has been an ongoing area of concern since the onset of the investigation.
The ARC has also acknowledged that the Department has committed to apply to National Treasury for condonation and removal of the aforementioned transactions in line with the PFMA Compliance Reporting Framework of 2022. h) ICT: The Committee notes the ARC concern regarding inadequate human and financial resources within the Department and that it remained a challenge that prevents the ICT Unit to function at a level that adequately supports the Department to achieve its programmes.
Furthermore, the Committee notes that the ARC received assurances from Management that this area was receiving urgent attention within the budget constraints.

However, this is a repeat finding as this is a longstanding matter that has not yet been resolved which is concerning.

In 65 131 addition, the ARC does not specify within the Annual Report what mitigation actions the Department has agreed to in order to hold them to account within a specified time-frame.
i) Consequence management: The Committee noted this lack of consequence management as repeat finding and is considered to be a major area of concern.

It reflected weak leadership and management to take corrective action.

Whilst the ARC makes reference to where consequence management was implemented by the Department, the ARC appears to be silent in areas with repeat findings and where recommendations have not been implemented for a consecutive year in a row.
j) Audit Action Plan: The Committee concurs with the ARC recommendation that the Accounting Officer develops an audit action plan to resolve the audit findings identified during the 2022/23 financial year.

Furthermore, the Committee noted with concern that the audit action plan and risk mitigating actions for 2021/22 were not fully implemented by the Department.
These two findings related to firstly, a gap in the segregation of duties in the ICT unit due to capacity constraints and the conclusion of irregular expenditure consequence management – application for condonation and removal of irregular expenditure not done within the FY.
As noted in the previous FY, the Committee remains concerned about how effective the ARC’s monitoring is over the Department and what remedial action was implemented if the Department did not comply with reporting requirements and the recommendations proposed by the ARC.

This too was a repeat finding of the previous FY.


k) Concern about staff shortage: Whilst the Committee acknowledged the ARC concern and that expressed by the Department regarding staff shortages across programmes which impacts on the Department’s ability to implement its mandate effectively, and despite the hopes for a revised organisation structure, the Committee remains resolute that existing vacancies have not been filled.
Furthermore, capacity constraints for Internal Audit, Risk Management and ICT are longstanding matters that have not been addressed.

l) Relationship with AGSA: The Committee noted that the ARC’s findings do not always reconciles with the AGSA audit findings as was the case whereby the ARC indicated the internal controls for the Department were adequate by the AGSA did not.
15.5.3 Outstanding Audit Findings and Risk Mitigation Actions for Department • Audit Findings: The Committee observed that 5/19 findings (ICT, HRM, SCM, Finance, Internal Audit) for 2021/22 were still not resolved by the end of the 2022/23 FY which was concerning.

66 132 15.6 Core Programmes 15.6.1 Overview of performance for core programmes a) Targets and expenditure: The Committee commends the Department for achieving all 28 targets in its core programmes during the year under review.
The key concern noted by the Committee was the under-expenditure incurred by the core programmes.

b) Policy and Law Reform: The Committee commends the Department for finalising and for tabling the NYDA Amendment Bill and the National Council on GBVF Bill.

However, the Committee notes with concern that the Department has yet to introduce Bills it has proposed such as the WEGE Bill, the South African Youth Development Bill and the Disability Bill.
c) Reports: The Committee acknowledges the reports submitted as evidence of the work achieved for the year under review.

However, several reports are outstanding and have yet to be submitted nor are these available on the Department’s website.

To this end, the Committee has repeatedly indicated that reports should be submitted for consideration at least one month after being finalised and published.
Oversight is weakened when the Committee is not privy to products yielded by the Department as evidence of targets met.

15.6.2 Programme 2: Mainstreaming Women’s Rights and Advocacy (MWRA) a) The Committee observed that the Department achieved 6/11 targets in this programme as per the Annual Report 2022/23.

However, a discrepancy was noted in the presentation to the Committee in which the Department reflected 7 targets achieved.
b) Rapid Response Teams: The Committee requested clarity on whether there are 17 or 12 RRTs established as the Committee noted that it received reports for 12 RRTs that were established.
Hence, the Committee queried how many provinces established the RRTs as the oversight visits undertaken by the Committee to several provinces revealed challenges in that regard with NGOs being largely responsible for the establishment, management and funding through donors as government via municipalities were not coming on board to absorb these teams and take on the financial responsibility to ensure their sustainability in the long run.
c) GBV Donor Funding: The Committee noted that the Department received donor funding from the European Union amounting to R109 million for a 3-year period towards a gender- based violence project and only R9 million was used.

The Committee enquired about the status of the project and the progress made given that so little was spent for the FY under review which was concerning given the scourge of GBVF in the country.
Hence, the Committee enquired about the implications for the R100 million that was not utilised given 67 133 that 2023/24 is the final year of allocation.

To this end, the Committee noted with concern that the Department complains of a lack of funding to undertake initiatives in this regard on such an important matter yet it is unable to spend the donor funds optimally within the allocated period.
Furthermore, the Committee questioned how the donor funder was monitoring the funding expenditure and whether the Department complied with the monitoring and reporting requirements in this regard.

d) Sanitary Dignity Programme: The Committee noted several matters of concern as follows: • SABS compliance: The Committee observed that the Department kept having product safety and standards workshops with SABS on annual basis but the issues remained pervasive as was discovered during oversight.
Despite the repeated workshops, the Committee questioned whether the SABS developed standards for the development of sanitary products in the country.

• Provincial Sanitary Dignity Committees: The Committee’s oversight revealed the lack of established Provincial Sanitary Dignity Committees and therefore put to question how many were established and operational in 2022/23.

• Beneficiaries: The Committee queried how many girls benefitted from the SDP per province against the target met since its inception.
In addition, the Committee enquired about how much was spent versus that which was allocated per province for the SDP for 2022/23 as the oversight visit revealed poor outcomes in this regard.

To this end, the Committee was concerned that many girls who were meant to receive sanitary products were not and sought an explanation from the Department in this regard based on its monitoring and evaluation.
• Remedial action: The Committee questioned how the Department was addressing the challenges faced by the Sanitary Dignity Programme (SDP) as the remedial strategy provided appeared to be inadequate.

• The Committee noted with concern that the target on SDP was not achieved yet it was set by the Department.

• The Committee questioned if the Department was satisfied with the performance of the SDP given the numerous concerns noted and alleged matters of corruption within particular provinces.
e) Women’s Economic Empowerment: The Committee enquired about the relationship between the NEF and or the Department of Small Business and the Department of Women, Youth and Persons with Disabilities insofar as women empowerment is concerned given that one the Department’s targets achieved related to training but no 68 134 mention was made of any stakeholders.

The Committee also enquired whether the Department has a programme to assist women to access support from the Department of Small Business.
15.6.3 Programme 3: Monitoring, Evaluation, Research and Coordination a) The Committee commends the Department for producing several research reports and undertaking monitoring and evaluation but remained concerned about the over reliance on consultants to do this with no medium to long term plan to capacitate existing staff to acquire the requisite skills and to fill the required vacancies.
15.6.4 Programme 4: Mainstreaming Youth and Persons with Disabilities’ Rights and Advocacy a) The Committee commends the Department for the improvement of performance in terms of targets achieved.
b) The Committee welcomes the Draft evaluation on the implementation of the White Paper on the Rights of Persons with Disabilities and the Status report on compliance with national and international obligations but emphasises the importance of making the findings known and ensuring that the recommendations are implemented.
Observations with respect to the Commission for Gender Equality (CGE) 15.7 CGE Matters Notwithstanding the fact that the CGE is a Chapter 9 Institution, it only accounts to Parliament vis-a-vis the Portfolio Committee on Women, Youth and Persons with Disabilities Presidency and that the Department merely transfers its funds, the Committee deemed it important to note the following observations: 15.7.1 General a) The Committee welcomed the tabling of the Annual Report 2022/23 by the CGE within the required time frame.
b) The Committee noted with concern targets which were not met by the CGE and the decline in performance of the CGE for 2022/23 (12/26 achieved, 46.1%).

69 135 c) The Committee welcomed the report and asked why the CGE has not included how much was allocated to each Strategic Outcome and how much was spent.

The lack of detailed information in this regard impeded oversight as this was important for the Committee to assess what the financial performance was for each SO.
d) The Committee enquired about the key drivers of success for each of the CGE’s Strategic Outcomes for 2022/23.

In addition, the Committee further enquired what were the key challenges or barriers the CGE identified that hindered achieving these strategies outcomes.

The Committee asked what would be required to address these challenges or potential barriers.
To this end, the Committee also wanted to know whether there are risks mitigating measures currently in place to address the challenges and if not, why not and if yes, what are these.

e) The Committee asked for the CGE’s assessment of how the country is performing in terms of achieving the NDP, SDP and Agenda 2063 goals for 2022/23 based on the work the CGE has done in 2022/23.

This overall assessment was lacking in the annual report.
To this end, the Committee was interested in understanding based on the CGE’s assessment of Government’s performance, what the key challenges were, how these can be addressed and what needs to be prioritised for the rest of the MTSF period.

15.7.2 Governance a) The Committee observed that policy to regulate the interface between Commissioners and staff or the role of a company secretary was not reported on in the Annual Report as was the case in the previous FY which was concerning.
b) The Committee acknowledged the Commissioners Handbook that was submitted but noted the track changes in the document and questioned the status of the document.

To this end, the Committee was satisfied with the explanation provided by the CGE that the document was in the process to be finalised and would be sent to the Committee for consideration once approved.

c) The Committee noted its discontent with the CGE’s lack of enforcement of internal controls and consequence management.
d) The Committee observed that the Commission for Gender Equality’s Audit and Risk Committee agreed with the findings of the AGSA, that some were repeat and or new findings.

15.7.3 Performance of Commissioners 70 136 a) Meeting attendance: The Committee noted once again the matter pertaining to non- attendance of a Commissioner at a Committee meeting without an apology.
This has been a repeated concern raised by the Committee and the importance of attending Portfolio Committee meetings insofar as it pertains to oversight.

b) Accounting of Commissioners performance was raised as an area that required review.

The Committee reiterated that without the requisite policies in place that clearly outlines standard operating procedures problems would arise.
The Committee was concerned that SOPs were not in place and adequately enforced and thereby raising questions around how Commissioners account for their time and get paid.

To this end, the Committee queried whether all Commissioners had declared their disclosure of interest so as to indicate if a Commissioner was employed elsewhere other than the CGE.

Complaints in this regard have been brought to the attention of the Chairperson of the Portfolio Committee.
15.7.4 Human Resource a) The Committee noted the staff turnover, particularly resignations, and enquired about the challenges related to staff retention.

To this end, the Committee asked about mitigation strategies to ensure institutional memory.

The Committee recalled that it had previously recommended to the CGE to conduct exit interviews and questioned whether this was implemented.
b) The Committee remains concerned about the suspension of a Commissioner that has been longstanding with cost implications and still not resolved.

The Committee remains concerned about the internal processes within the CGE to deal with matters connected therewith.

15.7.5 Finance a) Underspending: The Committee noted with concern the under-spending (R7.3 million) and requested an explanation in that regard.
Given the importance of the work rendered by the CGE, the Committee deemed it unacceptable that funds are not utilised optimally particularly for an institution that claims it is under-resourced and requires more funding.

b) Fruitless and Wasteful Expenditure: The Committee noted with concern the Fruitless and Wasteful expenditure (R5,694 008) incurred by the CGE of which R2, 753 340 related to the 2020/21 FY payment of Part-time Commissioners without time sheets.
71 137 However, for the 2022/23 FY an amount of R 1, 450 468 in fruitless and wasteful expenditure was incurred.

15.7.6 Payment of Commissioners a) Payment of part-time Commissioners: The Committee noted with serious concern the 2022/23 FY Fruitless and Wasteful expenditure incurred of R 1, 450 468.

The bulk of FEW (R 1, 012 273) was attributed again to the payment of part-time Commissioners without the requisite time sheets.
b) Variations in Salaries: The Committee observed related to different claims by part-time Commissioners in relation to hours worked as well as for subsistence and travel.

15.7.7 SO 1 a) Court monitoring: The Committee questioned how the CGE monitored courts given that the target was not achieved yet it was done in previous years.

Furthermore, the Committee noted with concern that the target was not achieved yet there were 7 Commissioners at the CGE during the year under review.
Given the challenges within the criminal justice system, lack of adequate monitoring by the CGE in this regard was unacceptable.

b) SAPS and TCCs: The Committee notes with concern that this target was not achieved.

Given the scourge of GBVF in the country lack of monitoring in this regard by the CGE was unacceptable.

c) Research reports (Teen pregnancy): The Committee was concerned that the learner pregnancy programme refers only to young girls and excludes young boys.
The Committee also enquired whether the CGE has programmes that focus on young school girls as underage pregnancies was concerning.

d) Research on Initiation: The Committee welcomed the report.

The Committee noted with concern the deaths amongst initiates on an annual basis and several other challenges that emanated particularly the matter raised by Chairperson Mogale that related to gender-based violence.
As such, the Committee enquired about the relationship between the CGE and the Department of Social Development (DSD) insofar as the challenges identified in its report on the initiation of young boys.

72 138 e) Forced sterilisation: The Committee commended the CGE on the force sterilisation research project that will continue in 2024.

15.7.8 SO2 a) Case management: The Committee noted with concern that cases closed were less in 2022/23 as compared to the previous FY even though more cases were opened.
The Committee asked how many of the 494 pending cases from 2021/22 were closed in 2022/23 and also how many were rolled over from 2021/22 to 2022/23.

The Committee remains concerned with the large volume of cases that were pending by 31 March 2023.

It was concerning to note that there was no target related to case management in the Annual Report nor was any disaggregated information made available within the report on the cases for the year under review.

This directly impedes oversight for the Committee.


b) Gender mainstreaming: The Committee enquired how SDGs were localised through gender mainstreaming and what has been the impact as this was not made apparent in the CGE’s annual report.

c) Community Radio and Education Outreach: The Committee commended the CGE on the community radio campaign and enquired how the CGE determined its success.

The Committee also queried what languages are used to communicate with the community.
The Committee enquired whether CGE engaged provinces to deal with the challenges faced by communities especially rural communities to access social media due to the absence of wi-fi in their areas.

d) The Committee notes with concern that Strategic Outcome 2, which deals with education and information sharing to create public awareness and understanding has performed poorly again for this FY.
15.7.9 SO3 a) Illegal mining: The Committee queried whether there is a report on the implementation of the recommendations of the report on illegal mining as this was an important matter.

b) NGPF: The Committee queried whether the CGE assessed the reviewed National Gender Policy Framework by the Department as this is a key overarching policy for the country.

The CGE had made no reference to this in its annual report which was concerning.
15.7.10 SO4 73 139 a) Visibility: The Committee queried what the CGE will do to increase its visibility and impact to achieve its Strategic Outcomes as this has always been a concern of Members.

b) Legal Practice Council: The Committee asked what the legal standing of the CGE is and what is the way forward to resolve the matter given that it is nearly a year since the CGE engaged with Legal Practice Council and subsequently with the State Law Adviser.
In the absence of the CGE not being recognised by the LPC as a legal entity it directly impacts on legal services rendered to the public which is concerning.

The Committee questioned how the CGE has resolved the matter with Legal Practice Council and its standing as a legal entity.

The Committee also asked how many litigation cases the CGE dealt with in collaboration with the SAHRC currently and how many there were in the year under review 2022/23.
c) Internal control: The Committee was also concerned about the lack of internal control measures within the CGE and the lack of compliance with legislation on supply chain management.

d) Turnaround strategy: The Committee questioned whether the turnaround strategy was in place to deal with the matters raised by the AGSA.

The Committee was concerned that the targets that were planned by CGE were not met.
e) Use of consultants: The Committee was concerned that the CGE spent R1,9 million on the use of consultants and professional fees.

To this end, the Committee questioned what the consultants were used for.

The Committee was concerned that CGE used consultants to write research reports despite having a budget and officials to do that.

f) Internal controls: The Committee queried how the CGE will strengthen internal controls to avoid fruitless and wasteful expenditure.
The Committee also wanted to know what is the plan to deal with risks mitigating factors as this was an important matter that must be acted upon.

15.7.11 CGE and AGSA a) The Committee was concerned about the audit outcomes of the CGE for 2022/23 and asked how the CGE should deal with issues identified.

b) The Committee questioned who should be accountable for the fruitless and wasteful expenditure incurred.
c) The Committee also questioned whether AGSA has powers to conduct investigations given the nature of concerns raised in the CGE.

d) The Committee noted with concern the lack of proper documents received for the audit.

74 140 e) The Committee questioned how the AGSA compared the issue of 100-hours payment to part-time Commissioners compared to other Chapter 9 institutions for the year under review and what standards are applied when conducting the audit.
f) The Committee was satisfied with the explanation provided by the AGSA on the process for auditing the 100-hour payment made to part-time Commissioners which was identified by the CGE’s Internal Audit unit in the AFS.

In addition, the Committee concurred with the AGSA recommendation that the CGE needs to ensure that the audit action plan and related mitigating actions i.t.o consequence management needs to link directly to the audit findings.
This will enable the prevention of repeat findings finding expression in the next annual report and audit.

15.7.12 CGE’s ARC a) The Committee requested clarity on the issue that the CEO does not have powers to take actions against the employees as the Plenary has more powers as compared to the CEO.

The Committee was concerned about the lack of consequence management for transgressors, how this is managed and implemented within the CGE.
The Committee noted that Commissioners have their own Handbook on how to deal with governance issues.

b) The Committee was concerned that it has not received a policy from the CGE with regards to the 100-hours payment to the part-time Commissioners as this was an issue that emanated in the previous FY in which clear recommendations were outlined by Members.
c) The Committee questioned whether there is procedure to be followed when implementing consequence management as the lack of consequence management is a repeat finding which appears not to be addressed by the CGE.

d) The Committee was concerned with the fruitless and wasteful expenditure finding as it relates to the payment of part-time Commissioners given the lengthy explanation provided by the Chairperson Mogale.
To this end, the Committee enquired how the ARC was dealing with the matter and what was required to rectify the fruitless and wasteful expenditure incurred for 2022/23.

e) The Committee noted with concern the findings by ARC on the internal controls of the CGE.
f) The Committee questioned what happened between April – October 2022 regarding the submission of time sheets by part-time Commissioners given that some Commissioners did not submit reports for a quarter or did not report against a Strategic 75 141 Objective/Outcome.

To this end, the Committee questioned how the CGE justifies remunerating Commissioners when no reports were submitted and what are the consequence management implemented for Commissioners who have not done their work.
15.8 Observations with respect to the National Youth Development Agency 15.8.1 General a) The Committee welcomed the report and noted improvements in the report presented to the Committee.

The Committee also commended the Agency for receiving another clean audit for 2022/23.

b) The Committee concurred with the AGSA and Audit Committee’s findings and recommendations.
To this end, the Committee agreed that whilst the majority of targets were reached and often exceeded these should be reassessed to determine whether these are too low and should be set higher.

c) Strategic priorities: The Committee asked what the NYDA’s assessment was of Government’s progress with regards to MTSF priorities, SDGs and Agenda 2063.

This was asked in light of the fact that the 6th Administration is nearing its end and this was not apparent in its annual reporting.
Furthermore, the Committee enquired about the NYDA’s assessment of what the key challenges are and what should be prioritised for the 7th Administration.

d) Youth unemployment: The Committee remained concerned with the high rate of unemployment of young people and that it appears to be increasing and whether the NYDA was monitoring the issue.

e) Youth in rural areas: The Committee was also concerned that young people in rural areas are not considered by the NYDA at the scale they should be.
15.8.2 ARC a) The Committee welcomed the report and observed improvements in the reporting by the ARC.

b) The Committee noted that the Agency incurred a fruitless and wasteful expenditure of R93 000 where a service provider did not deliver goods to two grant beneficiaries and enquired what measures were implemented by the ARC in this regard to prevent such issues from recurring.
The Committee also enquired whether this was attributed to 76 142 administrative error from NYDA to pay a service before a service is provided and sought more clarity in this regard.

c) The Committee noted the ARC’s findings in terms of the financial performance at 71%; a slight regression in performance of the NYDA from 100 to 93% but was satisfied with the explanations provided.
15.8.3 Programme 1 Administration a) Finance: The Committee commended the NYDA for not incurring irregular or wasteful expenditure for the year under review.

The Committee enquired about the financial performance at 71% and how this could be improved.

The Committee noted the austerity measures within Government and asked whether the NYDA had been affected by the budget cuts.
b) Consultants: The Committee queried whether the NYDA utilised consultants to do their work and if so how many are used and at what costs.

The Committee was pleased to hear that the NYDA do not procure the services of consultants to undertake its core business.

c) Fruitless and Wasteful Expenditure: The Committee noted with concern the FEW incurred on account of non-delivery by a service provider post payment.
As such, the Committee queried at what stage of the procurement process did the NYDA identify that the goods paid for were not delivered.

The Committee also wanted to know what happened to grant beneficiaries whilst NYDA was recouping the funds as the concern was that youth beneficiaries should not suffer as a result.

The Committee also enquired about how far the NYDA was in recouping the money back and what else the NYDA has done besides recoup the money to prevent such a matter for recurring.
The Committee was pleased to hear that youth beneficiaries were not disadvantaged and Members were satisfied with the processes instituted by the NYDA to recoup the money and blacklist the service provider.

a) Loans written off: The Committee enquired about the total amount of loans was written off by end of 2022/23 financial year as this was longstanding matter which the NYDA inherited.

b) HR: The Committee questioned the employability for the 159 (CWP) whose contract expired.
The Committee was pleased to hear that all of these youth were absorbed in COGTA and remained employed.

The Committee observed a discrepancy in terms of the number of employees reflected within the Annual Report between different tables and that which was presented to the Committee in a presentation during the meeting on 17 October 2023.

77 143 c) Vacancy rate: The Committee commended the NYDA improving the vacancy rate in the Agency and enquired about the current status vacancies.
d) Disability Employment Equity Targets: The Committee queried how many persons with disabilities are employed within the NYDA.

The Committee was concerned that there was no disaggregated data provided on the employment for persons with disabilities in the recent Annual Report as was noted in the previous FY.

15.8.4 Performance of the Board a) The Committee observed the improved working relations amongst Board members and was pleased with that.
b) The Committee commended the reports by the Chairperson and Deputy Chairperson of the Board.

c) The Committee also requested a progress report on the assistance offered to young farmers who are farming cannabis/hemp by the NYDA as this was an initiative suggested by the Committee.

d) The Committee enquired about the key outcomes of the Nelson Mandela Youth Dialogue and how many young people attended as this was a welcomed initiative.
e) The Committee also enquired about the key challenges identified by the Board for 2022/23 to understand what support and interventions are required going forward.

To this end, the Committee asked what will the Board be doing differently if anything for the next financial year.

f) Time management and contributions: The Committee asked how are Board Members managing their time between contributing towards the goals of the NYDA versus their own personal initiatives outside of the organisation.
The Committee also questioned how the contribution of each Board member is assessed quarterly and annually.

This was important in light of attendance at Portfolio Committee meetings and an observation that not all non- executive Board members accrued the same amount of working hours and therefore were remunerated accordingly.

However, it was unclear to the Committee how this was accounted for notwithstanding the fact that Board members have made various contributions to the NYDA during 2022/23.
g) The Committee reiterated the attendance of all Board members at Portfolio Committee meetings as this was an important measure for ensuring accountability.

Given the concerns raised about attendance, participation and contribution of Board members and measurements to assess this fairly, the Committee proposed that these matters are considered in the NYDA Amendment Bill.
78 144 15.8.5 Programme 2: Programme Design, Development and Delivery a) The Committee enquired about what the NYDA contributes to the success of its partnership with the private sector and SETAs.

b) SDP: The Committee queried whether the NYDA was able to offer non-financial business development interventions for the beneficiaries in the Department’s Sanitary Dignity Programme and how many young people were assisted in this regard in 2022/23 as this was not explicitly reported in the annual report.
c) The Committee asked what has led to the success in exceeding the target for capacitating 83 923 youth with skills as this was commendable.

To this end, the Committee also enquired about the number of youth e that were skilled and have subsequently been able to secure work opportunities as this would point to the impact of the initiative.

d) The Committee also requested the Agency to assist young graduates with employment opportunities as the concern was that this cohort of unemployed youth was growing.
e) NYS: The Committee commended the NYDA for achieving the target but noted with concern that only 20 governments departments were on board in 2022/23.

As such, the Committee sought clarity in this regard as the National Youth Service is a flagship programme of Government and a slow up take in this regard by national and provincial departments was unacceptable.
f) The Committee acknowledged the success of the KZN Public Works Department initiative with the NYDA and enquired whether the NYDA could replicate this to other Provinces.

g) Homelessness and youth living on the streets: The Committee noted with concern the large numbers of youth living on the street and enquired whether the NYDA had a programme to address this issue.

The Committee acknowledged the efforts of the NYDA in this regard and urged that a programme is implemented to help these young people.
h) PYEI: The Committee notes with concern that the funding cycle for this initiative is nearing the end and given the successful nature of it, the Committee is of the opinion that it should continue into the 7th Administration as a flagship programme.

It has proven to benefit youth directly and therefore should not only be extended but expanded as well.
i) Scholarships and bursaries: The Committee commended the NYDA for supporting 34- youth who benefitted from the Solomon Mahlangu Scholarship fund and sought more information on the number of undergraduates versus post-graduates.

The Committee also asked how many males, female and persons with disabilities benefitted and what was the total amount disbursed for this fund.
Furthermore, the Committee enquired about the number of 79 145 youth that have been assisted with bursaries by the NYDA especially young people with disabilities who require assistance.

j) Fellowship: The Committee queried when the first take of the Mandela Fellowship for Young African Leaders would commence, where will this be advertised and how can young people apply.
The Committee also enquired whether the Nelson Mandela youth fellowship is in collaboration with other organisations and whether it will be offered to youth in SADC countries and or the entire Africa.

15.5.9 Integrated Youth Development a) The Committee observed the IYDS Summit achievement and asked what were the key outcomes of the summit as follow-up in this regard was important.
15.5.10 Law reform a) The Committee noted that the NYDA has not sent a submission on the National Youth Development Agency Amendment Bill in response to the Committee’s call for oral and written submissions.

To this end, the Committee reiterated the importance of hearing the views of the NYDA on legislation that would directly impact it.

16 RECOMMENDATIONS The Minister of Women, Youth and Persons with Disabilities should ensure that the following recommendations are implemented.
16.1 General a) The Department should conduct a skills development audit to assess what the capacity is in order to deal with issues of research and monitoring as it is not functioning optimally within the Department.

This is to avoid over reliance and use of consultants and instead focus on where capacity needs to be built.

b) Department Officials responsible for incurring under-expenditure during 2022/23 should be held to account.
c) The DG should implement consequence management against officials for non- performance.

d) The Communication Unit of the Department should ensure that the Department’s website is operational.

80 146 16.2 Audit Action Plan a) The Department should submit its final Audit Action Plan for the Committee’s consideration by 30 November 2023 and report at the next quarterly report briefing.

b) The AGSA and ARC recommendations should be taken seriously by the Department and implemented.
Officials found not having implemented these recommendations must be held to account.

c) The Department should clearly articulate how it intends addressing each of the findings identified and implementing the recommendations within a set time frame within the Audit Action Plan.

16.3 Financial performance a) In-Year Monitoring Reports: The Department must continue to submit quarterly reports to the Committee in line with National Treasury Regulations.
b) Spending Trends: The Committee recommends that the Department monitor spending patterns and ensure that this is in keeping with what has been outlined in the respective Strategic Plans and Annual Performance Plans.

To this end, the Department is to provide the Committee with detailed financial reports for activities on a quarterly basis.

These financial reports should clearly indicate the purpose of the activity as it relates to the objectives outlined in the APP and the expenditure incurred.
The Department should consider including a specific target related to expenditure management in the APP for 2024/25.

c) APP: The Department must ensure that its APP is costed appropriately with a clear indication as to how and when it intends undertaking activities with corresponding costs.
d) Irregular Expenditure, Fruitless and Wasteful Expenditure: The Committee urges the Department to take disciplinary action against employees responsible for irregular expenditure and fruitless and wasteful expenditure.

The Department should further develop an action plan on steps to prevent irregular expenditure as well as fruitless and wasteful expenditure.

e) Deviations: The Department should attend to the OCPO discrepancies and report back to the Committee on the outcomes hereto.
In addition, the Department should submit a spreadsheet of deviations made with reasons to assist Members of the Committee to understand why deviations were made.

f) Consultants: The Department should submit an updated report on the use of consultants, who they are, how many have been used and the list of projects, how long the consultants 81 147 have been working in the Department and the costs incurred.
Where relevant the Department should also provide the Committee of M&E donor reports and donor expectations for the disbursement of funds.

16.4 AGSA & Audit and Risk Committee a) The AGSA should engage with the leadership of the CGE and request more information on the submissions of timesheets of part-time Commissioners and matters connected therewith and report back to the Committee accordingly in light of its audit findings.
b) The AGSA should attend the meeting of the Committee with the CGE on Friday, 13 October 2023 on the annual report for 2022/23 and provide feedback on issues raised in the meeting held on 10 October 2023. c) The AGSA should conduct audits fairly when auditing the Department and the entities and also improve on its relationship with the ARC’s of the Department, CGE and NYDA.

d) The ARC should monitor whether officials who had not implemented the recommendations of the ARC are held to account.
16.5 Human Resource a) Vacancies: All key funded vacancies should be filled within the specified time allocation, in instances where this is not complied with, the Department should clearly identify within the quarterly reports to the Committee reasons for failure to comply and remedial action taken.

The Department should submit a list of vacancies that have been prioritised and a time frame for filling the required posts.
b) Performance management: The Committee recommends that the heads of Programmes provide quarterly reports of consequence management for the non-delivery of targets with a clear indication of the remedial action implemented.

Each programme and sub- programme will be required to present progress to the Committee on a quarterly basis.

The Department should provide a report with a portfolio of evidence on notch increases for employees as reported in the Annual Report 2022/23.
c) Use of consultants: The Department must review its continued reliance on consultants and report back to the Committee on how transfer of skills is enabled to Department officials by the current cohort of consultants.

d) Disciplinary cases and investigations: The Department should submit a comprehensive report on all cases in the Department and brief the Committee accordingly.
82 148 16.6 Governance a) The Committee reiterated the importance of compliance with the Public Finance Management Act and National Treasury Regulations by the Department and that failure of officials in this regard must be dealt with expeditiously.

To this end, the Committee recommends that the Department reports on how it deals with transgressors and what remedial action is taken.

This should be presented in the quarterly reports.


b) The Committee remains concerned about the non-compliance and adherence to laws and prescripts by officials within the Department.

The Department should consider including a specific key performance indicator and targets that addresses compliance to laws and prescripts.
c) Investigations: The Committee recommends that the Department briefs it (at Quarter 1 & 2 briefing for 2023/24) on the outcome of investigations that have been completed and indicate what progress has been made in terms of implementing recommendations and consequence management.

Furthermore, the Department is expected to brief the Committee on progress with regards to investigations currently underway.
16.7 ICT a) The Committee urges the Department to address outstanding risk mitigation actions as a matter of urgency and fill the critical vacancies.

16.8 Performance related recommendations 16.8.1 SMART principle a) The Committee recommends that the Department must ensure the alignment between the Strategic Plan and its Annual Performance Plan which includes objectives and targets that are SMART and costed accordingly.
Any changes to the APP must be brought to the attention of the Committee as soon as these are done with a clear indication of the HR impact and financial implications.

The Department must update the Committee on the status of targets on a quarterly basis.

Financial and performance reporting must be in-line with the tabled APP.

b) The Department to avoid as far as possible amendments to its APP once operational particularly in the latter half of the FY.
16.8.2 National Gender Machinery (NGM), GEYODI, Youth and Disability Machineries 83 149 a) The NGM is an important mechanism for stakeholder engagement as espoused in CEDAW to which South Africa is a signatory.

The Committee should be kept abreast of NGM meetings and activities.

Similarly, for GEYODI, youth and disability machineries.
16.8.3 Treaty compliance framework and timeframes a) The Committee recommends that the Department should ensure that country reports are submitted within the specified timeframes as required by the relevant reporting bodies.

b) The Committee recommends that the Department should report back to Parliament on feedback received on country reports, action plans developed in this regard as well as progress in terms of implementing recommendations.
c) The Committee recommends that the Department must present all reports at an international level to the Committee at least one month before it undertakes the international trip.

16.8.4 Reports a) The Committee recommends that the Department brief the Committee on reports completed for 2022/23 and submit all outstanding reports.

The briefing should include what progress has been made since the completion of the reports.
b) The Department is requested to submit all finalised reports one month after completion to the Committee for consideration.

16.8.5 Legislative and Policy Reform a) The Committee urges the Department to finalise all outstanding policies and frameworks.

b) The Committee recommends that the Department brief the Committee on a quarterly basis progress update on the development of reports/policies/frameworks/guidelines etc.
16.8.6 GBVF a) NSP: The Department to provide quarterly updates on the implementation of the NSP.

The Department submit its M&E reports on the implementation of the NSP and brief the Committee accordingly.

b) Secretariat: The Secretariat/technical team to submit a progress report to the Committee on its activities to date including finances.
16.8.7 Sanitary Dignity Programme (SDP) a) The Committee urges the Department to ensure that young women and persons with disabilities benefit from the whole SDP value chain and that it collaborates with the NYDA in this regard.

84 150 b) The Committee recommends that the Department provides a comprehensive assessment of the implementation of the SDP for the 6th administration.
16.8.8 Rights of Persons with Disabilities (RPD) a) The Department should brief the Committee on the reports produced related to the analysis of APPs and the annual monitoring report on inclusion of persons with disabilities.

b) The Department should expedite the development of the Disability Rights Bill and brief the Committee accordingly.
16.8.9 National Youth Development (NYD) a) The Department should strengthen its collaboration with the NYDA as part of a coordinated strategy to address youth unemployment in the country.

The Department should submit a report that outlines how it intends giving effect to this recommendation with clear roles and responsibilities and time frames.

b) The Department to submit a progress report on the development of the South African Youth Development Bill at the next Quarterly report briefing.
16.9 CGE The CGE should ensure that the following recommendations are implemented.

16.9.1 Finance a) Audit Action Plan: The CGE should develop an audit action plan that relates to the recommendations made by the AGSA.

This action plan should address the root cause of the problems and reflect the AGSA and ARC findings/recommendations.

It must be submitted to the Committee by 30 November 2023. b) The CGE should provide quarterly progress reports on the implementation of its Audit Action Plan.
c) The CGE should ensure that it maintains tight control over its fiscus and avoid over-an under expenditure in 2023/24 and beyond.

d) Irregular expenditure (IE) and fruitless and wasteful expenditure (FWE): The CGE to continue reporting on investigations related to the IE and FWE, mitigating actions and consequence management implemented at every quarterly report briefing.
e) Financial reporting: The CGE must report on an annual and quarterly basis its expenditure per strategic objective in order for the Committee to conduct more astute oversight.

85 151 f) Surplus funds: The CGE to report back to the Committee at the Q1 and Q2 2023/24 briefing on progress made in requesting National Treasury to retain surplus funds that was accrued.

g) Monthly reports: The CGE to submit monthly reports to the Committee on key matters of concern and progress hereto.
h) Consultants: The CGE should submit a detailed report on the use of consultants (for the year under review) to the Committee.

16.9.2 Payment of part-time Commissioners a) The CGE should deal with the finding regarding fruitless and wasteful expenditure pertaining to the payment of part-time Commissioners without time sheets as a matter urgency and report back to the Committee accordingly.
The Committee expects a policy in place to deal with the matter which should be implemented and monitored accordingly with the requisite supporting documentation in place to prevent a repeat finding in the next annual report.

b) The CGE should engage with the AGSA, the ARC, NT and all other relevant stakeholders to resolve the matter expeditiously and ensure mechanisms are implemented to prevent repeat findings from recurring and report back to the Committee accordingly.
c) The ARC should guide and assist the CGE on how to deal with its policy on the 100-hour payments to part-time Commissioners in terms of implementation, monitoring and reporting.

d) The CGE should submit all outstanding reports pertaining to attendance of Commissioners to meetings and the longstanding suspension matter.
16.9.6 Governance a) The CGE should finalise its policy that pertains to interrelations between the administration and the Commissioners and this should be submitted to the Committee before the end of the 30 November 2023. b) Handbook: The CGE should finalise the Commissioner’s Handbook and submit to the Committee on completion before the end of the 30 November 2023 as a matter of urgency.
c) Business Model: The CGE should submit the Business Model to the Committee for consideration by 30 November 2023. d) Consequence management: The CGE should hold to account Commissioners and employees who transgress policy and laws and ensure appropriate consequence management is implemented.

86 152 16.9.7 Legal Practice Council a) The CGE should follow-up with the Department of Justice and the State Law Advisor for the CGE’s legal standing to be resolved as a matter of urgency.
16.9.8 Programme and performance a) The CGE must prioritise the filling of vacancies.

b) The CGE should improve on its complaints handling processes and ensure that it is reintroduced as a target within the next APP.

c) The CGE should discuss the strategic directions of the CGE with the secretariat to implement these accordingly.

d) The CGE should do more work on monitoring of courts, the NPA, SAPS and Thuthuzela Care Centres as it relates to gender-based violence issues.
This includes finalising all monitoring tools and ensuring that all Commissioners have annual and quarterly targets to fulfil in this regard.

e) The CGE should use all languages including the use of sign language to communicate with the community.

16.9.9 Commissioners a) Commissioners to continue to report on a quarterly and annual basis to the Committee on their deliverables in line with each Strategic Outcome as per the APP.
16.10 NYDA The NYDA should ensure that the following recommendations are implemented.

a) Audit Action Plan: The NYDA should develop an audit action plan that relates to the recommendations made by the AGSA and Audit Committee.

This action plan should address the root cause of the problems raised.

It must be submitted to the Committee by 30 November 2023. b) The NYDA should provide quarterly progress reports on the implementation of its Audit Action Plan.
c) The NYDA should examine its targets and consider setting higher targets.

d) The NYDA should attend the Committee’s public hearing on the National Youth Development Amendment Bill and make an oral submission to the Committee on the Bill but also hear what other submissions raise.
87 153 e) Given the concerns raised about the attendance, participation and contribution of Board members and the need for measurements to assess this fairly, the Committee proposed that these matters are considered in the NYDA Amendment Bill.

f) The NYDA should engage with the Commission for Gender Equality to collaborate on and share information on ukuthwala programme which forms part of a wider gender- based violence initiative.
g) The NYDA should hold regional youth dialogues to ensure that it reaches every young person in the country as an extension of the Nelson Mandela Youth Dialogue initiative.

h) The NYDA should provide a breakdown of grants given to young people in terms of gender, province and disability.

i) The NYDA should collaborate with the mining, agricultural and forestry industries to harness employment opportunities for young people especially in Limpopo and Mpumalanga Provinces.
j) The NYDA should invite the Committee to its various initiatives especially work such as youth dialogues and include Member’s and their constituencies as areas of focus.

In addition, the NYDA should consider utilising the skills and expertise of individual Committee Members when undertaking initiatives within communities.
k) The NYDA should provide a breakdown of the number young people who benefitted from the Solomon Mahlangu Scholarship fund in terms of gender, disability, under and postgraduate degrees.

l) The NYDA should engage with National Treasury on extending the PYEI into the 7th Administration.
The Committee hereby recommends the following for consideration by the Minister of Finance: 16.11 National Treasury a) The Committee requests National Treasury to consider the condonation requests by the Department and the CGE.

b) The Committee requests National Treasury to consider the requests for roll-over of funds for the Department and the CGE.

c) The Committee requests that National Treasury considers the continuation of the PYEI in the 7th Administration.
d) The Committee requests National Treasury to assess the Department’s use of consultants as the Committee is concerned about the over reliance by the Department in that regard and report back to the Committee accordingly.
88 154 16.12 AGSA a) The AGSA is to follow-up on the payment of part-time Commissioners without timesheets submitted in terms of Fruitless and Wasteful Expenditure having taken into consideration the findings of the ARC, the Internal Audit Unit and the Portfolio Committee on Women, Youth and Persons with Disabilities in order to resolve the matter and ensure recommendations have been implemented.

17.
17.

SUMMARY OF REPORTING REQUESTS Table 11: Reporting requests Reporting matter Quarterly reports Action required Written report Briefing Timeframe Every quarter Audit outcomes - Details of audit action plan Written report of audit action plan Briefing 30 Nov. 2023 Q1&2 2023/24 briefing Dept.
þ þ CGE NYDA þ þ þ þ Progress report on audit action plan Briefing Q1&2 2023/24 briefing þ þ þ Forensic investigations Written report Quarterly Deviations HR: vacancies, dismissals, termination of contracts Country reports reports Impact of initiatives (campaigns, workshops, events, conferences etc.)
Commissioners Handbook Briefing Written report Briefing Written report Briefing Written report Briefing Written report Quarterly Quarterly at update Progress quarterly briefings 30 days after an event has taken place Written report Briefing Finalised November 2023 before 30 þ þ þ þ þ and interface Policy on between Commissioners Administration Commissioner’s performance quarter Department, CGE, NYDA – Request for reports, documentation etc.
per Report Briefing Written report Briefing 30 before Finalised November 2023 Briefing 2023/24 At every quarterly report briefing Q1&2 at Written Briefing report Refer to BRRR 2023 for exact time frame þ þ þ 89 þ þ þ þ þ þ þ þ 155 18.

CONCLUSION The Committee will endeavour to monitor the Department, the NYDA and CGE with respect to the implementation of recommendations made by the AGSA as well as the ARC and has committed to engaging jointly in future.
In conclusion, the Committee urges the Department, the CGE and the NYDA to take its recommendations seriously and implement these expeditiously.

Report to be considered.

90 156 5.

PORTFOLIO COMMITTEE ON HOME AFFAIRS 2022/23 BUDGETARY REVIEW AND RECOMMENDATION REPORT DATED 20 OCTOBER 2023 1.
INTRODUCTION As specified by section 5 of the Money Bills Amendment Procedures and Related Matters Act (MBAP) of 2009, the National Assembly, through its Committees, must annually assess the performance of each national department.
A Committee must submit the Budgetary Review and Recommendation Report (BRRR) annually to the National Assembly which assesses the effectiveness and efficiency of the department’s use and forward allocation of available resources and may include recommendations on the use of resources in the medium term.
In this regard, the Portfolio Committee on Home Affairs (the Committee) oversees the Budget and Performance of the Department of Home Affairs (DHA), the Government Printing Works (GPW) and the Electoral Commission (IEC).

In addition, after being formally established and assuming its status as a schedule 3 (A) public entity on 1 April 2023, the Border management Authority (BMA) was also officially launched on 3 October in Musina, Limpopo, under the direction of President Cyril Ramaphosa.
As such this entity has also been separately accounting to and being overseen by the Committee.

The Committee met with the DHA, BMA, IEC and GPW, Auditor General (AGSA) and National Treasury on the Budgets and Plans of the Budget Vote 5 entities on 29 and 30 March 2023 as part of the Committees Strategic Planning.

The DHA briefed the Committee on its Quarterly financial and performance reports on 2 November and 16 May 2023.
Annual Reports of the DHA, IEC and GPW were presented to the Committee for deliberation on 10 October 2023.

The BMA was not yet inaugurated in the year under review and thus still has its finances and performance reported as part of the DHA.

The Committee considered and amended its Draft BRRR on 17 October 2023 and the final was Adopted on 20 October 2023 after additional inputs from the entities and members.
Over the medium term, the DHA has been allocated budget to continue to focus on securing international migration through the establishment of the Border Management Authority, modernising ICT infrastructure to ensure integrated planning and efficient administration, ensuring access to rights and services, and digitising records.

Expenditure is expected to increase nominally at an average annual rate of 0.7 per cent, from R10.8 billion in 2022/23 to R11 billion in 2025/26.
This is mainly due to a once-off allocation of R839.9 million in 2023/24 for the digitisation of records project.

The department plans to facilitate the function shift from various national departments towards the establishment of the Border Management Authority, which explains an increase of 14.4 per cent in spending on transfers and subsidies.

The department is set to receive additional funding of R900 million over the MTEF period for the establishment of the Border Management 1 157 Authority.
Spending on compensation of employees’ accounts for an estimated 35.8 per cent (R11.3 billion) of total expenditure over the MTEF period, and spending on goods and services for an estimated 27.5 per cent (R8.4 billion).

Over the medium term, the IEC focus is on preparing for and conducting the 2024 national and provincial elections, for which R3.5 billion is allocated over the MTEF period for electoral operations.
These include the procurement, printing, distribution and warehousing of registration and election materials; rental and infrastructure payments for about 23 400 voting stations; the procurement of electoral material such as an additional ballot type; the appointment and training of an estimated 350 000 electoral and expansion staff; the maintenance of the voters’ roll; technological improvements such as rewriting candidate nomination, ballot generation and election result systems; and the procurement of a building for its national office.
The commission plans to undertake extensive civic and democracy education and communication campaigns ahead of the 2024 national and provincial elections, as well as to roll out the amended Electoral Act (1998) once it becomes law.
To ensure compliance with applicable provisions of the Political Party Funding Act (2018), the commission’s party funding unit will focus on the management and administration of the Represented Political Parties’ Fund and the Multiparty Democracy Fund, for which R75 million has been allocated over the MTEF period.

Total expenditure is expected to increase at an average annual rate of 5.5 per cent, from R1.7 billion in 2022/23 to R2 billion in 2025/26.
As a result of the appointment of contractors ahead of the 2024 national and provincial elections, spending on the compensation of employees is set to increase at an average annual rate of 7.3 per cent, from R827.2 million in 2022/23 to R1 billion in 2025/26.

Over the medium term, GPW will focus on revamping its ICT infrastructure by procuring a new enterprise resource planning system at a projected cost of R324 million.
It will also focus on completing its master plan to renovate the administration building on Visagie Street, Pretoria, at an estimated cost of R1 billion.

Expenditure is projected to increase at an average annual rate of 12.1 per cent, from R1.3 billion in 2022/23 to R1.8 billion in 2025/26.

The entity is set to generate 99.1 per cent (R5.5 billion) of its revenue over the medium term through its business operations.
Revenue is expected to increase at an average annual rate of 12.2 per cent from R1.4 billion in 2022/23 to R2 billion in 2025/26.

Processes for the establishment of the Border Management Authority as a schedule 3A public entity with effect from 1 April 2023 are underway.
This entails, among other things, transitional arrangements that include sharing some corporate services with the department in 2023/24; transferring the frontline immigration, health, environment and agricultural functions and personnel at ports of entry to the authority through ministerial delegations; seconding personnel to the authority from other organs of state; and physically verifying assets and inventories.
The authority will continue using some of the department’s shared corporate services for 2023/24 as guided by a service‐level agreement.

Expenditure is expected to 2 158 increase at an average annual rate of 4.6 per cent, from R1.3 billion in 2023/24 to R1.5 billion in 2025/26.

Total expenditure amounts to R4.2 billion over the MTEF period.
The authority will focus its spending over the period ahead on deploying 200 additional border guards and gradually operationalising the corporate back office with 5 senior positions.

The DHA and IEC submitted their annual reports on time by the end of September 2023 as required by the Public Finance Management Act.

The GPW however only submitted the previous 2021/22 year financial report by September, still affected by two system crashes as in the previous year.
This also contributed to the GPW’s second Disclaimer Audit Opinion.

The DHA had its 7th consecutive unqualified audit with findings.

The IEC with its third consecutive clean audit.

1.1 The Portfolio Committee on Home Affairs In line with the core objectives of Parliament, the mandate of the Committee is to consider and pass legislation; oversee and scrutinise executive action; facilitate international participation; facilitate co- operative government and facilitate public participation and involvement.
The key issues in the DHA, IEC and GPW are put forward by the Committee on the basis of: • 30 Committee Meetings and deliberations since the last BRRR which includes briefings by the DHA (including BMA), the IEC and GPW.

In addition, the Committee met with National Treasury, the Auditor General, Lawyers for Human Rights, the State Information Technology Agency, 3 Petitioners and Hon.

Hendricks on a Private Member’s Muslim Marriages Bill.
• 9 of the above 30 meetings included the Electoral Amendment Bill (1 of 2022) which was adopted by the Committee on 10 February 2023.

Consequential Amendments are still being considered to this Act and are pending a related Bill from the DHA.
• Scrutinising the entities’ Strategic and Annual Performance Plans, the State of the Nation Addresses, policy documents, Estimates and Revised Estimates of National Expenditure, Medium Term Expenditure, quarterly reports as well as other external briefings and reports.

• An oversight visit to the Department’s Head Office and the newly opened Menlyn Shopping Mall Office.
• Committee Members’ engagement in their constituencies and over a thousand electronically forwarded requests for intervention on behalf of the public.

1.2 The Department of Home Affairs The mission of the DHA is to ensure the efficient determination and safeguarding of the identity and status of citizens and regulation of migration to ensure security as well as to promote and fulfil South Africa’s international obligations.
This mandate is administered through the following four overarching budget programmes: 3 159 Programme 1 - Administration: The programme provides leadership, management and support services to the Department of Home Affairs.

Programme 2 – Citizen Affairs: The programme provides secure, efficient and accessible services and documents for citizens and lawful residents.

This programme’s budget also includes the transfers to the IEC and GPW.
Programme 3 - Immigration Affairs: The programme facilitates and regulates the secure movement of people into and out of the Republic of South Africa through ports of entry; determines the status of asylum seekers and regulates refugee affairs.

It also confirms and provides enabling documents to foreign visitors legally residing within the Republic of South Africa and enforces immigration legislation and effects deportations.
Programme 4 - This programme provides for institutional support and transfers to entities not under the control of the department such as the BMA, IEC and Represented Political Parties Fund.

1.3 The Electoral Commission The Electoral Commission of South Africa (also known as the Independent Electoral Commission (IEC) is South Africa’s electoral management body.

The IEC is an independent organisation established under Chapter 9 of the Constitution of South Africa.
The IEC is an autonomous body underwritten by the Electoral Commissions Act (No 51 of 1996).

In terms of Section 190(1) of the Constitution, the IEC must manage elections at national, provincial and municipal legislative bodies in accordance with the national legislation, ensure that those elections are free and fair, and declare the results of those elections within a period that must be prescribed by national legislation and that is as short as reasonably possible.
Section 5 of the Electoral Commission Act (No 51 of 1996) outlines the duties and functions of the IEC.

This includes managing any elections; ensuring that any election is free and fair; promoting conditions conducive to free and fair elections; promoting knowledge of sound and democratic elections processes and compile; maintaining a register of parties; compile and maintain a voters roll to mention but a few examples.
This is administered through 4 budget programmes: • Programme 1: Administration • Programme 2: Electoral operations • Programme 3: Outreach • Programme 4: Party Funding 1.4 The Government Printing Works GPW specializes in the printing and development of security media, including passports, visas, birth certificates, educational certificates, smart identity documents, examination materials, and a wide range of other high-security printed documents.
4 160 GPW’s financial viability is dependent on its ability to generate revenue from services rendered.

Its main clients include State departments and their statutory bodies for example the DHA, Departments of Education (Basic and Higher Education), the South African Police Service (SAPS), Department of Health, Justice and others, to which GPW provides security printing services on a cost recoverable basis.
The GPW is administered across four branches: • Office of the CEO • Branch: Operations and Production • Branch: Strategic management • Branch: Financial Services • Branch: Human Resource 2.

2022/23 BUDGET 2.1 .

Briefing by the DHA, BMA, GPW and IEC on their 2023-24 budget allocations and Plans The Committee met with the entities on their Budgets on 28 February and held its Strategic Planning Session inclusive of the entities plans on 29 and 31 March 2023.
2.2 DHA Budget DHA Chief Financial Officer, Mr Gordon Hollamby, presented on the budget indicating that the expenditure from the past 9 years had been at 100% of its allocation.

There is capacity to spend and since 2013-14 no unauthorised expenditure has been incurred.

As of January 2023, the overall spending was at 74 percent, this is slightly under the projections for the current financial year.

This underspending projection is due to the late receipt of funds for the digitization project.
Alongside the passenger name recognition project that has not progressed, leaving an amount of R200 million that has not been used.

The compensation of employees (CoE) remains the biggest cost driver, sitting at 36 percent.

The ceiling for CoE is capped at R3.9 billion.

As of January 2023, CoE is at 75% of its target, this places the Department in a less pressurised position – allowing the offices of the Department to stay open later and pay overtime including for the festive deployment periods.
Allocations for the 2023/24 budget are increased and are expected to drop in 2024/25.

This is due to specific baseline reductions and baseline increases of about R1 billion.

This is largely in programme 4: Institutional Support and Transfers related to the BMA and IEC.

Self-financing is a mechanism that allows the Department to retain some of the generated revenue and use it for the purpose defined by National Treasury.
The Department uses these funds for the costs 5 161 incurred for the generation of this revenue, these include but are not limited to: cash-in-transit activities, hospital connectivity, property look and feel, financial accounting, and archives management.

The overall self-financing allocation is R987 million.

For the 2023-24 financial year, the DHA’s allocations were R10.863 billion for the four DHA programmes as follows: • Programme 1: Administration – R2.719 billion.
• Programme 2: Citizen Affairs – R3.361 billion.

• Programme 3: Immigration Affairs – R858.59 million.

• Programme 4: Institutional Support and transfers – R3.924 billion (BMA: R1.342 billion and IEC: R2.232 billion).

2.3 BMA Dr Mike Masiapato, the BMA Commissioner indicated the BMA was at that stage still to be established by 1 April 2023 as a separate entity from the DHA.

The staff consultation has been conducted in preparation for 1 April 2023.
He also reported that the Audit and Risk Committee with four members and the Remuneration and Human Capital Committee with three members have been established and were appointed by the Minister for three years with effect from 1 February 2023.

The budget for 2022-23 was R78 million and the BMA has already spent about R47 million which translates to 60 percent.

There was a commitment of R13 million for February and March 2023.

An estimated amount of R18 million would be unspent from the COE.
The transfer of staff and functions from the Departments of Home Affairs; Health; Agriculture, Land Reform and Rural Development and Forestry, Fisheries and Environment would contribute about R1 billion to the BMA budget.

The initial budget request by BMA for 2023-24 was R2.686 billion and over the MTEF period the budget was R10.6 billion.

Because of budget pressures, the BMA would outsource most of its corporate functions to DHA.
2.4 IEC IEC Chief Electoral Officer, Mr Sy Mamabolo, indicated that based on the 2024 Election, the 2023/24 financial year budget is R2.2 billion, housed in four programmes bearing 14 outputs.
The IEC budget will provide for: - two registration weekends - one in 2023 and the other in 2024 - revisions to electoral information communication technology - voter registration - launch of communication campaigns - staff expansion programme - incremental capacity increase of the institution 6 162 - recruitment and training of 50 000 registration staff for the upcoming registration weekends - expansion of the local delivery model and local storage sites - identification and contracting of registration stations - maintenance of the network of offices countrywide.
Taking note of the recently passed Electoral Amendment Bill, the IEC is looking to accommodate the operational and financial implications of this.

This includes the re-writing of ICT business applications, particularly the candidate nomination system to take account of independent candidates and signature requirements; the logistics information system; and the results system.
The IEC has some funding pressures, particularly in: (i) workshops and training, (ii) the projected increase of ballot papers by about 50% to accommodate the regional ballot, (iii) the expected increase in the number of contestants resulting in longer ballots and possible reconfiguration of ballot papers, (iv) a public education programme of the revised electoral system and (v) workshops for new electoral contestants.
The IEC has had to absorb cuts of about R240 million in the current year but National Treasury has provisionally approved the retention of any 2022/23 budget allocation surpluses to assist with funding pressures.

The IEC programme financial breakdown is: - Administration programme accounts for R820 million which includes CoE.

- Electoral Operations is the core programme accounting for R1.2 billion.

- The Outreach programme is R258 million.

- The Party Funding and Liaison programme is R25 million.
- The recruitment of staff in the Political Parties Funding Unit has been slowed down for the IEC to get a more realistic sense of the volume and intensity of work in this unit.

2.5 GPW Ms Alina Fosi, the Chief Executive Officer; Ms Constance Shibambo, Director: Internal Audit and Mr Ian Van Der Merwe, Chief Financial Officer made the presentation.

Ms Fosi indicated some of the projects that were implemented at GPW as follows: • The development of change management and GTAC has been appointed.
• Modernisatiion of GPW.

7 163 • Business continuity after the loss of data.

• The implementation of Ministerial Review Panel Report Recommendations.

• The Security Printing Bill.

• The appointment of the Ministerial Advisory Board.

• A case study to establish a polycarbonate printing assembly.

• Critical infrastructure projects.

The newly approved organisational structure was implemented on 1 April 2022.
It was reported that 417 new positions were added to the new structure and 74 positions have been reassigned.

The GPW was addressing the audit findings.

There were 595 findings and 77 percent of these findings have been resolved.

GPW revenue was forecasted to increase at an average annual rate of 16 percent from R1.426 billion in 2022/23 to 1.654 billion in 2023/24.

GPW was set to generate R5.51 billion in revenue over the medium term through business operations.
Expenditure was forecasted to increase at an average annual rate of 15.54% from R1.288 billion in 2022/23 to R1.488 billion in 2023/24.

The total estimated expenditure over the medium term will be R4.96 billion.

2.6 Budget Deliberations In response to questions raised by members of the Committee the following was indicated: DHA Response 2.6.1.

The decrease in the DHA Immigration branch budget is due to the functional shift of Immigration to the BMA.
All immigration officials at the ports of entry will move to BMA with their salaries.

Therefore for the 2024/25 financial year, these remuneration budgets will move to BMA, because of the functional shift.

2.6.2.

In the DHA Immigration branch budget, there are funds of about R450 million for goods/services and these will assist the Home Affairs team with deportation.

2.6.3.
2.6.3.

The Committee had suggested Home Affairs work on a business case due to understaffing as the DHA staffing level was sitting at about 36%.

National Treasury had approved funds of R260 million which enabled DHA to fill about 762 vacant positions with a focus on services which placed it at a 42% staffing level.

Whilst this is far below acceptable measures, DHA is looking at improving the staffing levels to at least 55%.

2.6.4.
2.6.4.

The budget will not be impacted by mobile trucks as the mobile footprint is being increased.

The DHA is anticipating the receipt of 20 more trucks by the end of February 2023.

Moreover, on the recommendation of the Committee, DHA is going to order 100 more trucks to be deployed and service the more rural areas.

2.6.5.

On the digitisation programme, it is set to continue for the next two years due to the late receipt of funds, therefore the interns will still be in the digitisation project.
The digitisation programme 8 164 is under consideration, with expected full running in March and April.

More graduates are expected to be employed on this.

The key milestones of the project will be indicated quarterly.

The minimum set of records should be demonstrable at the end of March 2023.

On the anticipated unspent money for the digitisation project, due to late receipt of the funding allocation, DHA has engaged National Treasury for a rollover, of which Treasury has been supportive.

2.6.6.
2.6.6.

The Passenger Name Recognition (PNR) is allocated about R228 million, the system is a sub- component of the Advanced Processing System.

This system allows DHA to tell you when a person books a ticket to South Africa which establishment they will be staying at, track the banking system of the traveller, and how the traveller intends to leave South Africa.
Unfortunately, this system is provided by a sole supplier – a Swiss-based company – and National Treasury declined the application to engage and appoint this service provider for the PNR.

The Department was advised to go on an open tender, and the process has been started.

As a result, DHA will be unable to spend the R228 million in this current financial year, National Treasury has been requested to un-earmark the funds.

2.6.7.
2.6.7.

Overall DHA has managed prudent financial systems in the past and there has been consistent performance.

The aim now is to improve and receive a clean audit.

Efforts to lobby for funding for the BMA will continue as this has been continually committed to by the Portfolio Committee that funding for the security cluster needs to be improved.

Border Management Authority response 2.6.8.


The BMA operates in two distinct areas: (i) the port of entry, which is inside the port, and (ii) the law enforcement area, which is outside the port.

Outside the port is legally defined as 10 kilometres outside the port, going sideways at the borderline, and 10 kilometres inside South Africa.

The other specialised area which is part of law enforcement is the vulnerable segment on the borderline.
This refers to areas where there are border communities, these are areas where the borderline competes with civilian activities in that area.

These areas have at times what is called the foot and mouth fence, which deals with animal movement.

The BMA will be taking over this work from DHA of Agriculture.

2.6.9.

Understanding the above, issues about the South African Police Services (SAPS); the BMA Act indicates that border law enforcement work will be done by BMA officials.
The intention was to ensure there is no confusion about duties.

Whilst this work is currently being done by the SAPS, when the BMA Act comes into effect it will be done by the Border Management Authority.

2.6.10.

The initial intention of BMA was to ensure officers deployed at the port environment by SAPS are controlled by BMA and those officials are integrated into the BMA.
It quickly became clear this would not succeed as the funds allocated for border control will have to be transferred to the BMA, Treasury did not allow this.

This meant BMA will not have the capacity to do all the 9 165 work.

Although the BMA will be doing some aspect of the work based on the current 200 border guards and 400 that will be brought on in the coming financial year.

As it stands the SAPS is utilising 6,000 officials across all ports in the country.
Compared to the 600 officials that the BMA will have, this meant the BMA could not fully take on the function.

The SAPS will continue this work and BMA will gradually take responsibility when their border guards increase.

There are still ongoing discussions with the relevant Ministers regarding the matter.

2.6.11.
2.6.11.

The BMA is looking at utilising drone technologies to complement the boots on the ground, unfortunately, with the allocation of only R250 million, BMA will not be able to deploy this at this stage.

In the interim, the BMA will try and tap into the drone technologies that the South African National Defence Force had indicated they intend to use for border management during the 2023 Budget Speech, with the hopes that the BMA will be granted additional resources.

2.6.12.
2.6.12.

Presently the BMA will cover all the main ports, which include land ports, sea, and airports.

In terms of the border line, only land will be covered with no sea borders covered.

BMA has not put effort into the sea line ports, let alone budgetary consideration.

The bringing in of the coastline guards will be the second phase of the BMA plans.

In summary, the shortfall is R10bn over a five-year period.

For the current year BMA asked for R2.6bn but got R250m.
Government Printing Works’ Response 2.6.13.

To date, GPW has started printing for all spheres of government.

In identifying revenue- generating clients, progress has been made.

A multi-faceted approach has been adopted for the revenue quantum for the expansion plan.

Since the advent of Covid-19, there have been numerous online engagements with SADC countries and the greater African continent to ensure the marketing of GPW products.
This has yielded some results, as these countries have come on official visits to view GPW services, with the intention of returning for business.

Central to this strategy have been efforts to engage embassies and high commissions in Pretoria to ensure there is wider engagement, without having to spend much on travelling costs.

2.6.14.

On the data loss, several companies have been engaged for data recovery and no costs have been incurred.
To date, there are no costs budgeted for data recovery, as systems are being recreated and there are efforts to re-automate the previously crashed system.

2.6.15.

On an economic impact assessment for potential business losses by the private sector, it is important to note that GPW is part of Printing SA.
Printing SA is a coordinating body for all printing, publication and its manufacturing sector within the country, therefore the GPW model has never competed with the private sector; it supports small, micro, and macro enterprises.

SMMEs have been granted business by being contracted to print certain products on behalf of GPW, to ensure their development and sustainability.

IEC response 10 166 2.6.16.


Voter education plans have a combination of integrated activities, the target is the young electorate of the country – particularly first-time voters.

Given the new electoral system, every electoral member becomes a target for voter education and the communication campaign.

One of these integrated activities is the community approach – the capacity is being put on the pool of staff members that will be at municipal duty stations.
The hope is that communities are reached broadly within communities, this will be at a voting district level.

2.6.17.

The second focal activity deals with vulnerable groups, particularly persons living with disabilities, where there will be similar community engagements with these groups for voter education and information.

2.6.18.
2.6.18.

Radio-based engagements for voter information and engagement will continue, using community-based radio stations as the medium has still been found to be relevant and effective.

Digital media is a new medium and the IEC will be making use of these.

The key areas include information sharing through animation, chatbots, and conferencing facilities to create dialogue for participants to engage with the IEC content.
The partnership with the South African Broadcasting Corporation does include radio and television where educational material will be shared, extending to all SABC channels.

2.6.19.

The IEC also has a focused school curriculum where civic education and duty are encouraged, coupled with the annual campaign in April which is voter education month.

The context of voter education in South Africa is still about why people should participate and vote.
This is a question that needs to be answered in dialogue and interactions.

The electorate needs to have a purpose in participating and to understand their responsibility in participating in the electoral democracy.

2.6.20.

The electoral process is becoming an expensive exercise as there is the amendments in the Electoral Amendment Bill to consider; enhancements to technology; and efforts in automating the election process.
Moreover, the IEC procures in the open market and prices are affected by external factors such as inflation.

2.6.21.

Donations to the Multi-Party Democracy Fund are indeed a strategic innovation in the party funding regulatory environment, as it allows for corporates and the citizenry to contribute to entrenching multi-party democracy.

Contributions to date have been to the value of R7.5 million.

Quite admirably two citizens have made contributions.
The need is there and the IEC is engaging all corporates and citizens who can contribute.

A process of engaging with high net worth individuals is underway to enthuse them about contributing to the fund.

This is distributed in a defined formula contained in the electoral prescripts in both an equity and proportional manner.

2.6.22.

The IEC intends to open the total fleet of 23 000 voting stations for two registration weekends – one in late 2023 and another in early 2024.
This is an important modality as voting stations are the most accessible for people.

It is a modality that is not dependent on a cell phone as you merely walk to a voting station to register.

It serves as an equalising opportunity for all South 11 167 African citizens.

To supplement this, the IEC has an online 24/7 accessible voter registration platform.

This is an attractive feature, particularly for young voters, who are the key target.
Civic education programme was launched last year for students in all tertiary institutions which is also important as it is an opportunity to register.

3.

DHA 2023/24 ANNUAL PERFORMANCE PLAN The Committee Strategic Planning Session included briefings by the four entities in its oversight portfolio of the annual plans and progress on Medium Term Strategic Framework (MTSF) from 2019 until 2023.
The DHA envision South Africa where identity, status and citizenship are key enablers of citizen empowerment and inclusivity, economic development and national security.

The DHA carries out its mission in line with its commitment to citizen empowerment and inclusivity, economic development and national security, by: • Being an efficient and secure custodian of citizenship and civil registration.

• Securely and strategically managing international migration.
• Efficiently managing asylum seekers and refugees.

• Efficiently determining and safeguarding the official identity and status of persons.

The DHA’s mandate is divided into two broad categories namely Civic Service and Immigration Services.

There are three (3) mandates, which are to manage citizenship and civil registration, the management of international migration and the management of refugee protection.
These are values of the DHA and it is committed to being: • People-centred and caring • Patriotic • Professional and showing leadership • Effective, efficient and innovative • Ethical and having integrity • Security conscious • Development oriented Strategic Plan Outcome Targets 2020 to 2025 In support of achieving the strategic objectives of the DHA, government priorities and the NDP, the DHA identified the following MTSF commitments for delivery by the end of 2025: 12 168 Outcome Indicator Baseline 31 March 5 Year Target (2025) Responsible 2020 Secure Risk-based & BMA legislation BMA incrementally Border management of strategic enacted.
rolled out as per the Management international immigration migration approach resulting in implemented South Africa’s against interests being predetermined served & fulfilling measures that ensure sovereignty, BMA Roadmap 2032 Authority to: (BMA) • 36 ports of entry • 10 segments of the land borderline & 2 community crossing points international national security, Transaction Advisor Construction & BMA commitments public safety, appointed for the redevelopment of six stability & redevelopment of 6 land ports of entry as development priority land ports of one-stop border posts entry.
completed by 2025.
• BMCS piloted at 2 A risk-based & (Immigration additional ports of strategic approach to Services & entry immigration Information • Draft Immigration implemented in respect System (IMS Bill (including of: / IS) amendments to the • Legislation Refugees Act) implemented to submitted to Minister for approval 160 law enforcement operations/ inspections support the White paper on International Migration Secure entry, documented stay & departure of persons conducted to ensure through the rollout of compliance with biometric functionality immigration & & law enforcement DHA legislation.
operations.
Risk-based & 100% compliance 100% compliance with IMS strategic issuing of with set service set service standards visas & permits standards for: for risk-based & 13 169 Outcome Indicator Baseline 31 March 5 Year Target (2025) Responsible 2020 against predefined, • Permanent strategic issuance of percentage-based residence permits visas & permits to targets to grow the • Business & general grow the economy by economy by 2024/25 work visas 2024/25 as outlined in • Critical skill visas the annual performance plans for: • Permanent residence permits • Business & general work visas • Critical skill visas Risk-based & The pilot of e-Visa E-Visa rolled out to all IS strategic visa (Phase 1 - temporary selected countries system residence visa for (106) by 2025 implemented tourist module) in 6 missions Secure & efficient Percentage of 100% (3 810 000 - Enabling documents Civic identified citizens Smart ID cards) issued to 100% of Services management of & holders of PR citizenship & permits to which civic enabling registration to documents are fulfil issued by 2024/25.
constitutional & international obligations identified citizens (CS) (including naturalized citizens) & holders of permanent residence permits (births registered within 30 calendar days & smart ID cards issued to a projected 19 050 000 by 2025).

Legislation in Green Paper on the New Marriage Act Infrastructure operation in respect recognition of implemented to Planning & of the new marriages submitted regulate all marriages.

Support Marriage Act to the Minister for (IPS) approval.
14 170 Outcome Indicator Baseline 31 March 5 Year Target (2025) Responsible 2020 Percentage of 100% compliance 100% CS compliance with with set service service standards standard set for adult passports issued (new live capture system) by 2024/25.

Efficient asylum Effective & New PI Asylum Seeker & IS seeker & efficient recording refugee system & monitoring of in compliance asylum seekers & with domestic refugees.

& international obligations.


Refugee System implemented Secure National Identity Specifications for NIS is operational by IS population System (NIS) NIS approved by 2025. register to operational as per DG.

empower requirements.

citizens, enable inclusivity, economic Legislation in Official Identity Population Register IPS operation to Management Policy Act implemented to development & regulate the submitted to Cabinet regulate the collection, national security.
collection, storage, for public storage, accessing & accessing & consultation processing of personal processing of personal information.

information DHA positioned Measures White Paper on DHA Act implemented IPS to contribute implemented to Home Affairs to effect the positively to a reflect a approved by Cabinet repositioning of the capable & repositioned DHA for implementation department as a secure developmental that contributes in December 2019.

& modern department.

state.


positively to a 15 171 Outcome Indicator Baseline 31 March 5 Year Target (2025) Responsible 2020 capable & A final draft of the developmental DHA Bill submitted state.

to Cabinet for approval for public consultation.

New PI Service Delivery IPS Model implemented in line with repositioned DHA.

DHA Access model DHA Access Model IPS approved by implemented in Ministerial support of the Management repositioning of the Meeting (MMM) DHA.
Communication Communication IPS Strategy Strategy implemented implemented as per as per the the communication communication plan.

plan.

Counter corruption Counter Corruption Counter strategy Strategy for DHA Corruption & implemented as per implemented in terms Security set targets of initiatives outlined Service in Annual Performance (CCSS) Plans.
3.3 The DHA contribute to the achievement of the National Development Plan (NDP) 2030 objectives: • The inclusion of all citizens in democracy and development is enabled by providing them with a status and an identity that gives them access to rights and services.

This must be done in an efficient, effective, professional and secure manner.
• A further priority for the DHA is to facilitate the acquisition of the critical skills needed for economic growth as determined by the Department of Higher Education and Training (DHET) to build our own skills base.

16 172 • The DHA must continue to drive integrated and coordinated border management to ensure our borders are effectively protected, secured and well-managed.
• The DHA plays a key role in enabling regional development by working with SADC countries through the Department of International Relations and Cooperation (DIRCO) to establish efficient, secure and managed migration.

• The DHA is central to harnessing the fourth (4) industrial revolution and building a capable state.

The modernization programme of the DHA can reduce fraud and the cost of doing business by enabling e- government, which will attract more investment into the country.
The NDP aims to eliminate poverty and reduce inequality by 2030 and the major focus of the NDP is to confront the triple challenge of poverty, inequality and unemployment by achieving higher growth rates.

3.4.

State of the Nation (SONA) 2023 commitments.

The DHA made the following commitments after the President’s SONA: • More than 340 million paper-based civic records are to be digitized by about 10,000 unemployed young people who would be appointed by the DHA.
• Establish a more flexible points-based system to attract skilled immigrants, implement a trusted employer scheme to make the visa process easier for large investors and streamline application requirements.

• Introducing remote worker visas and special dispensation to high-growth start-ups.

3.5.

Key Development and Critical Success Factors for 2023-2024.
• The DHA will continue to support the Border Management Authority (BMA) as a public entity through systems, legislation, policies and standard operating procedures that form part of the broader approach to managing migration within the RSA.

• The Digitization Programme to modernize civic services as announced by the President in the 2022 SONA has commenced and the 2023/24 financial year will digitize around 36 million birth records.
• The Automated Biometric Identification System (ABIS) went live in November 2022.

The DHA is in the process of implementing phase 2, which will include additional functionalities such as Iris, infant footprint and palm-print backend recognition capability.

• The Biometric Movement Control system (BMCS) rollout to 72 ports of entry will be completed in the 2023/24 financial year.

• The DHA has developed an implementation plan to deal with the Vulindlela Task Team policy and process recommendations.
• A multi-disciplinary task team has been appointed to deal with the Lubisi Report recommendations.

• The implementation of the DHA Repositioning Programme is underway and around 30 projects form part of the Programme Management Office.

• To deal with long queues: 17 173 1.1.

The DHA Menlyn office in the Menlyn Shopping Mall in Pretoria was opened in March 2023 with more malls to follow.

1.2.

The Branch Appointment Booking System (BABS) has been rolled out to all 200 modernized offices.

1.3.
1.3.

DHA is in the process of procuring an additional 100 mobile offices to cover the 778 visiting points to augment the DHA access model and strategy.

• The procurement process for the Passenger Name Record (PNR) has started.

The bid specification process is underway.

The PNR system data elements include passenger data from airline reservation systems like payment details, travel itinerary and baggage information.

The PNR is a key component of a risk-based approach to immigration.
• DHA has made significant progress with the implementation of POPIA.

• DHA will continue with the implementation of the DHA Plan to promote gender-based violence and femicide (GBV&F) as well as gender, youth and persons with disability issues.

Specific focus to be placed on: - Increase awareness on issues of harassment through the launch of women’s forums across the DHA.

- Undertake a survey on different issues related to GBV&F.

- Strengthen the DHA Sexual Harassment Policy.


- Host sessions aimed at empowering employees on issues of harassment, especially lower-level employees.

- Create a dedicated email for reporting cases of harassment.

• Central to the DHA improving its organizational performance and quality of service delivery, is the issue of capacity.

The funding received from the National Treasury as part of the Capacitation Business Case has already shown a positive impact on target setting for 2023/24.
The DHA will strive to improve its HR capacity from 46% to at least 55% over the medium term in conjunction with National Treasury.

• The DHA will continue in its endeavours to find durable solutions for long-lasting systemic challenges such as system downtime through working closely with SITA and other service providers.

3.6.

Summary of the Annual Performance Plan (APP) Targets for 2023/24.
In the Civic Services programme, the DHA plans to register 800 000 births within 30 days a calendar year and 2.5 million Smart Cards to be issued to citizens 16 years of age and above.

The DHA plans to issue 90 percent of the machine-readable passports issued within 13 for applications collected and processed in South Africa per year.

The DHA would also issue 90 percent of machine-readable passports issued within 18 days for applications collected and processed in South Africa per year.
In the Immigration Services, the DHA plans to conduct 1 296 DHA-led law enforcement inspections to ensure there was compliance with the immigration legislation per year.

These operations would focus on restaurants; security companies; manufacturing; transport companies; automotive industry such as car 18 174 dealerships, towing, scrap yards, and recycling; retail outlets; farms; DHA-led operations or roadblocks and mines.
The DHA plans also to adjudicate 85 percent of permanent residence applications for critical skills (S27b), general work (S26a) and business (S27c) within eight (8) months for the applications collected within South Africa per year.
The DHA would adjudicate 95 percent of critical skills visa applications within 4 weeks for applications processed within the RSA per year, 90 percent of business visa applications adjudicated within 8 weeks for applications processed within the RSA per year and 90 percent of general work visa applications adjudicated within 8 weeks for applications processed within the RSA per year.

To achieve the above, the DHA has 16 adjudicators who were due to start on 1 April 2023.
The DHA was training 62 adjudicators who would be posted to the South Africa missions abroad.

These 62 adjudicators would assist with the backlog for two (2) months before being posted abroad.

Under the Administration programme, there are sub-programmes such as the Information Service; the Director-General’s Office; the Institutional Planning and Support; Counter Corruption and Security Services and Human Resource Management and Development.

Below are the targets under the Administration programme.
3.6.1.

The Information Service • Biometric Movement Control System (BMCS) implemented at 38 ports of entry and the implementation of BMCS will eliminate a lot of fraud and identity theft as has been the case using only photographs as a means of biometric testing.

The use of fingerprint technology will make it increasingly difficult for fraudsters to enter the country anonymously.
• Automated Biometric Identification System (ABIS) Phase 2 is operational: Iris, infant footprint and palm-print backend recognition capability is deployed into production.

ABIS started in January 2016.

It is a modern IT system based on commodity hardware.

This modern IT system will integrate with other relevant systems, inside and outside Home Affairs, to allow for one holistic view of the status of clients.
It will serve as a single source for biometric authentication of citizens and non-citizens across state institutions and private sector entities.
• The DHA would pilot the IMS Case Management System modules for Inspectorate and Deportations to be piloted in four (4) offices (Head office, Epping Refugee Reception Centre, Pretoria Large Office and Lindela Repatriation Centre) • The DHA would implement the Asylum Seeker Management and Refugee System at five (5) refugee reception offices and 2 statutory bodies (Refugee Appeals Authority of South Africa -RAASA and the Standing Committee on Refugees Affairs - SCRA) 3.6.2.

Digitisation of Records.


19 175 Target for 2023/24: - 36 million records digitised (birth records) - 18 000 Microfilm indexed Target for 2024/25: - 152 million records digitised Target for 2025/26: - 152 million records digitised.
3.6.3 Legislation Target for 2023/24: - White Paper on the Management of Citizenship, International Migration and Refugee Protection submitted to Cabinet for approval Target for 2024/25: - Citizenship, Immigration and Refugees Bill submitted to Cabinet for approval Target for 2025/26: - Citizenship, Immigration and Refugees Bill tabled in Parliament - White Paper on the Management of Citizenship, International Migration and Refugee Protection submitted to Cabinet for approval • The Immigration Regulations will be amended to incorporate remote working/digital nomad visas as a priority under one of the existing visa categories.
Consultations with the Department of Trade Industry and Competition are underway on this matter.

The Regulations will be presented to the Minister of Home Affairs by end of May 2023.

• The DHA also planned to table to Parliament the DHA Bill; the National Identification and Registration; Marriage Bill and One Stop Border Post Bills would be submitted to Cabinet and therefore tabled in Parliament for processing.
• The DHA would have 20 engagements with the media and will have six (6) outreach programmes and three (3) campaigns.

These targets are intended to communicate and publicise the DHA’s core functions and mandate, while also engaging with the stakeholders to solicit their support and buy-in for the work of the institution.

3.6.4 Institutional Planning and Support.
• The 2023 State of the Nation Address commitments such as the establishment of a more flexible points- based system to attract skilled migration, implementing a trusted employer scheme to make the visa process easier for large investors and streamlining application requirements as well as introducing a remote worker visa and special dispensation for high-growth start-ups will be covered in the White Paper on the Management of Citizenship, International Migration and Refugee Protection.
20 176 • The Service Delivery Model (SDM) implementation Framework approved by the Director-General and the User Asset Management Plan (U-AMP) 2024/25 was submitted to National Treasury and copy to the Department of Public Works and Infrastructure (DPW &I.)

• The DHA would submit approved strategic accommodation requirements for 2025-2026 to DPW&I and budget requirements and options analysis for DHA Hybrid Access Model presented to National Treasury to secure funding for the Access Model.
• The DHA would digitise 36 million records digitised (birth records); 18 000 Microfilm indexed.

3.6.5.

Counter Corruption and Security Services • Under the Counter Corruption and Security Services, the DHA would review 16 Business processes to identify vulnerabilities to fraud, corruption and security breaches (per year).

• Seventy-five percent of reported cases of fraud and corruption were finalized within 90 working days (per year).
• Forty Threat and Risk Assessments (TRAs) are conducted per year in accordance with the requirements of Minimum Information Security Standards (MISS) and/or Minimum Physical Security Standards (MPSS).

• Four hundred and fifty vetting files were finalized and referred to State Security Agency (SSA) for evaluation.

3.6.6.

Human Resources Management and Development.


• DHA Gender-based Violence and Femicide Plan were implemented and 70 percent of misconduct cases were concluded within 90 working days per year.

• In addition, the Department of Home Affairs reported on the upcoming legislation and update the policy to amend consequential legislation to the Electoral Amendment Bill.
The DHA reported that the Electoral Commission Act, the Electronic Communications Act, the Political Party Funding and the Financial Management of Parliament and Provincial Legislatures Act were being drafted together with the Electoral Commission (IEC).

The document was yet to be finalised.

• The project of moving Refugees Reception Centres (RROs) closer to the borders has been shelved due to the unavailability of funds.
• With the One-Stop-Border-Post (OSBP), the Public-Private Partnership (PPP), the DHA must obtain approval from the National Treasury (NT).

The DHA was granted Treasury Approval (TAI) on 10 August 2017 to start drafting the Request for Proposal (RfP).

The draft RfP and the draft PPP Agreement were concluded on March 2022 and submitted to NT on 18 March 2022.
21 177 • The DHA engaged with the NT draft on the RfP, the draft PPP and this resulted in the revised RfP that was re-submitted to NT in December 2022, and final amendments are expected to be completed by 31 March 2023.

The RfP would be issued to the market before the end of April 2023.

In March 2025, the construction would commence in phases and could take up to 3 years for each of the six (6) ports of entry.
3.6.7 Vulindlela Report During the February 2022 SONA, the President announced that South Africa would review its visa regime to make it easier for foreigners to travel to the country for tourism, business and work.

Operation Vulindlela delivered to the DHA a report with eight recommendations broken down into Process Recommendations and Policy Recommendations.

The Immigration Services Branch has studied the report and was in the process of the Implementation Plan.

4.
4.

BMA 2023/24 ANNUAL PERFORMANCE PLAN The Commissioner reported that the development of the BMA Strategic and Annual Plans involved the Department of Planning, Monitoring and Evaluation (DPME); the DHA; Department of Agriculture, Land Reform and Rural Development (DALRRD); the Department of Health (DoH); the Department of Forestry, Fisheries and Environment (DFFE); the Cross-Border Road Transport Agency (C-BRTA) and the South African Police Service (SAPS).
During the BMA Strategic Planning Sessions, he reported that the Strategic Plans (2020-2025 and APPs 2022-2023) of the DHA; DoH; DFFE and DALRRD were scrutinised.

These departments would cede selected functions to the BMA.

The DPME guarded the BMA in the development of the Strategic Plan and APPs with inputs from NT and the Auditor-General of South Africa (AGSA).
Section 5 of the BMA Act, the Authority is expected to fulfil the following legislated mandate: a) Facilitate and manage the legitimate movement of persons within the border law enforcement area and at ports of entry; b) Facilitate and manage the legitimate movement of goods within the border law enforcement area and at ports of entry; c) Co-operate and coordinate its border law enforcement functions with SAPS, SARS & SANDF, border communities or any other persons.
Section 4 (2) emphasizes that border law enforcement functions should be exclusively performed by the officers of the BMA and BMA’s is overseen by the Border Technical Committee (BTC) & Inter-Ministerial Consultative Committee (IMCC) – (No Board).

The Minister of Home Affairs would chair the IMCC and 22 178 the Commissioner would report to the Minister of Home Affairs.

The Commissioner is the Commander of the Border Guard, the Accounting Officer, the Accounting Authority and the Chairperson of the BTC.
The BMA has four key outcomes and these outcomes are aligned with the outcomes of the Medium-Term- Strategic-Focus (MTSF) priorities.

• Outcome 1: Institutional excellence distinguished by good corporate governance and ethical leadership; - Priority 1 - A capable, ethical and developmental state.

- Priority 2 - Economic transformation and job creation.

- Priority 6 - Social cohesion and safer communities.
• Outcome 2: Secure borders that protect national interests and enhance national security; - Priority 6 - Social cohesion and safer communities - Priority 2 - Economic transformation and job creation • Outcome 3:Enhanced trade and socio-economic development; Priority 1 - A capable, ethical and developmental state.

Priority 2 - Economic transformation and job creation.

Priority 7 - A better Africa and world.


• Outcome 4:Strengthened coordination and cooperation amongst stakeholders within the border management environment.

Priority 1 - A capable, ethical and developmental state.

Operating Model The BMA has signed service level agreements with the Departments of Home Affairs; Health (DOH); Forestry, Fisheries & Environment and Agriculture (DFFE), Land Reform and Rural Development (DALRLD).
Functions, staff and assets of these departments at the border environment would be transferred to BMA.

The core functions of the BMA are land border law enforcement; maritime border law enforcement and Aviation Border law enforcement.

There would be Head office nine (9) regional offices.

The border guards would be deployed at the vulnerable segment of the borderline, 53 land ports of entry, 11 avian ports of entry and nine (9) maritime ports of entry.
23 179 Furthermore, there are stakeholders such as the South African National Defence Force (SANDF), the South African Revenue Services (SARS) and the South African Police Services (SAPS) that would cooperate under the implementation protocol.

The C-BRTA and South African Health Products Regulatory Authority (SAHPRA) would operate under the basic Memorandum of Understanding.
The BMA would also work with the local and international communities; the border communities; the law enforcement community, travellers and neighbouring countries.

BMA Operationalisation The President has signed Section 97 Proclamation shift function to BMA.

The Ministers, Directors-General and the Chief Financial Officers of the four (4) Departments (DHA; DoH; DFFE and DALRRD) signed the joint submission in December 2022.
The Ministry of Public Service and Administration (MPSA) approved the determination for the transfer of resources and NT concluded budget shifts.

The Agreement of the transfer and integration of staff into the BMA was signed by Government and the organized labour and staff migration plan endorsed by National Macro-Organizational Government (NMOG) Streams and implemented.

The BMA signed a Shared Services Agreement with the Department of Home Affairs for assistance with corporate services support.
As indicated, the BMA has four (4) outcomes and four (4) targets for five (5) years to accomplish 15 targets.

The five-year targets are as follows: • • Integrated good governance framework for the BMA established.

Intelligence and risk capability established and implemented.

Six Priority land ports of entry functional as secure trade- and travel-friendly one-stop border posts.

• Eleven (11) agreements with stakeholders were signed and implemented.
The targets for the BMA are as follows: • Business process reviews are conducted to detect system and process-related vulnerabilities to fraud and corruption.

• 100 percent of valid invoices are paid within 30 days.

• Three (3) quarterly approved reports were submitted to DPME as prescribed.

• Gender-based Violence and Femicide Plan implemented as per the approved implementation plan.

• Disaster Management plan approved.


• National Targeting Centre (NTC) was established as per the proposed operating model (business case).

• The BMA rolled out in phases along additional two (2) segments of the land border law enforcement area 24 180 • The BMA rolled out to one (1) additional community crossing point (CCP).
• Thirty (30) PoEs rendering port health services in compliance with International Health Regulations (2005) and National Environmental Health Norms and Standards • 100 percent of detected illegal persons at the ports of entry are processed for deportation.

• 100 percent of pre-booked CITES consignments that go through the PoE endorsed.

• The facilities at 22 identified PoEs audited for transfer to the BMA.

• The OSBP: Bid adjudication for selection of preferred bidders concluded.
• Three (3) signed Implementation protocols (with SAPS, SARS & SANDF) were monitored for implementation.

• 25 percent of cooperation agreements signed and implemented.

5.

IEC 2023/24 ANNUAL PERFORMANCE PLAN 5.1.

Annual Performance Plan for 2023-2024 Financial Year.

The Chief Electoral Officer (CEO) made the presentation.

He indicated that the IEC received a budget of R2.2 billion with four (4) programmes and 14 targets for the 2023-2024 financial year.
These programmes are as follows: • Programme 1: Administration.

The purpose of Programme 1 is to achieve the strategic outcome of strengthening institutional effectiveness at all levels of the organization.

It also provides the overall strategic management of the Electoral Commission, as well as a centralized support and financial management services.

This programme has four (4) targets.

• Programme 2: Electoral Operations.


Programme 2 focuses on the strategic outcome of managing and delivering free and fair elections by striving for excellence at the voting station level; ensuring accessibility and suitability of voting facilities and processes; managing results; maximising electoral justice for all stakeholders in the electoral process; enhancing the credibility of the voters’ roll; ensuring compliance with legal prescripts; and continuously improving the legislative framework.
• Programme 3: Outreach.

This programme focuses on the strategic outcome of informing and engaging citizens and stakeholders in electoral democracy.
The programme fosters participation in electoral democracy by providing civic and democracy education continuously; voter and balloting education as may be required by each election; strategic and thought leadership on matters pertaining to electoral democracy; broadening our research agenda and issuing publications; increasing visibility through proactive consultation, effective communication, and presence among our stakeholders and communities; facilitating platforms for political dialogue; cultivating an environment conducive for the holding of free and fair elections; and constantly engaging the media.
• Programme 4: Party Funding.

This programme focuses on the strategic outcome of contributing to the enhancement of transparency in elections and party funding.

The programme manages party funding and donations in the: 25 181 o Compliance with legislation, and strengthens cooperative relationships by providing consultative and liaison platforms between the Electoral Commission and political parties and candidates, using systems, people and processes that are sustainable.
o It also provides effective management of the registration of political parties and processing of the nomination of candidates for various electoral events.

5.2 The IEC indicated that consequential amendments that require attention would be: • Section 236 of the Constitution provides that “to enhance multi-party democracy, national legislation must provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis”.
• The Political Parties Funding Act is to be amended to bring independent MPs within the scope of the Bill.

• Other optimization amendments to the Political Parties Funding Act.

6 GPW ANNUAL PERFORMANCE PLAN FOR 2023-2024 Ms Alinah Fosi, the Chief Executive Officer made the presentation and indicated that the APP outlines all the outcomes, outcome indicators and performance targets for the 2023-2024 financial year and the targets are aligned with the Strategic Plan 2020-2025.
The APP was further developed on the revised Framework for Strategic Plans and Annual Performance Plans with the assistance of the Department of Planning, Monitoring and Evaluation.

She indicated that the GPW contributes to the following MTSF: • Building a capable, ethical and developmental State.

• Economic transformation and job creation.

• Education, skills and health.

• Consolidating the social wage through reliable and quality basic services.
• Spatial integration, human settlements and local government.

• Social cohesion and safe communities.

• A better Africa and world.

6.2.

Progress on the 2019 to 2024 Strategic Framework Targets demonstrates that GPW performed well.

• GPW has successfully maintained and achieved the quality measure of producing security-printed documents at 100% compliance against client quality and quantity specifications.
As at the mid-term reporting period a total number of 432 905 identity documents/cards and 1 432 738 passports were produced.

26 182 • In contributing to the “economic transformation and job creation” strategic outcome, GPW has been implementing the youth and women through its Artisan and Graduate skills programme.

Of the 100 planned for achievement over the MTSF period, a total of 54 have already been taken through this programme.
• GPW received a disclaimer audit opinion for the 2019/20 and 2020/21 financial years, as a result of the challenges that emanated from the system crash that led to the loss of critical finance data.

GPW has been implementing a migration plan to stabilise and sustain all operations, particularly in ICT and Finance.
• GPW’s focus on business continuity, risk management and resolution of audit findings remain a priority to strengthen internal controls and ensure clean governance, given the challenges experienced in the past financial years.

6.3.

Critical Projects.

• GPW repositioning: change management and culture change.
GTAC appointed and busy with the development of turnaround strategy and provide support on the implementation of HR recommendations based on the MRP Report and change management • Modernisation of GPW- a renewed focus on ICT interventions in the wake of 4IR.

A migration plan is being implemented to ensure the stabilisation and sustainability of the ICT environment.
• Business continuity of all operations and sustainability of GPW, given the challenges that GPW has been experiencing in ICT and its facilities • A conscious journey towards a clean audit rests upon the following crucial pillars: - Quality of oversight processes in GPW- to realise the imperative of achieving a clean audit - Strengthening and monitoring internal controls to ensure their relevance and effectiveness - Financial probity and culture that supports probity with our procurement processes being efficient and compliant with legislation, having integrity, equitable and fair - Overall governance: leadership, management responsibility and effectiveness of governance structures such as EXCO, MANCO, Audit and Risk Committee within the combined assurance framework • Implementation of Ministerial Review Panel Report recommendations: Action plan being implemented based on the short-term, medium-term and long-term activities and milestones.
• Security Printing Bill: The Provincial consultative sessions on the Bill are ongoing.

GPW in partnership with the DHA team has already presented to all Provinces, except for North West and Western Cape.

Engaging them on dates to finalize consultation.

• Appointment of the Ministerial Advisory Board (MAB).

Governance structure to advise Minister and EXCO on overall GPW operations.

• Strengthening systems of employee wellness and occupational health and safety.
Implementation of policies, procedures and plans to create and sustain a caring environment 27 183 • Critical Infrastructure Projects: New Head Office (ABSA) building refurbishment) and Masterplan (initiation of construction plan): both projects approved for implementation.

• DBSA has been appointed as the implementing agent and has begun with administrative processes towards the refurbishment and construction of these critical facilities.
• Implementation of ISO 9001, ISO 14001, ISO 45001, ISO 27001, ISO 22301, ISO 18788 and ISO 14298: Research and development, including support and service maintenance for 5 years post implementation • Conduct a polycarbonate printing and assembly plant techno-economic study: agile printing facility, which is ready for expected future trends in technology and the printing industry.

7.
7.

DHA 2022/23 ANNUAL REPORT 7.1 DHA Programme Performance Key success(s) in 2022/23 • The DHA improved its audit outcome to an unqualified audit opinion without findings, which means that the financial statements were fairly presented and free from material misstatements.

• Two programmes, Administration and Citizen Affairs have achieved over 80% of their targets for the 2022/23 financial year.
• The Department managed to decrease its fruitless and wasteful expenditure from R91 000 recorded in the 2021/22 financial year to R78 000 for 2022/23.

Key challenges in 2022/23 Nine APP targets were not achieved during the 2022/23 financial year.

The Department continues to be beset with the same challenges, similar to what was reported during previous financial years.
These are: • The Department only achieved 71% of its planned targets for the 2022/23 financial year, whilst this is an improvement compared to the 69% achievement in 2021/22, it is still well below 80%.

• In the financial year under review, the Department incurred irregular expenditure of R32,707 million.

• The Department continues to experience challenges with network connectivity.

This affects the live- capture system for the Civil Service.
This system cannot function when offline, and therefore, services cannot be rendered during that period of time.

• Whilst the “War on Queues” remains a priority for the Department, the frontline offices of the DHA still experience long queues coupled with network connectivity challenges.

• As in the previous financial years, the DHA has a limited number of offices, some offices are poorly located, and most do not meet the norms and standards set for modernised offices.
• A major weakness and risk for the DHA is the inadequate human resource capacity and capability in critical specialists, management areas and frontline offices.

28 184 Table 1 provides a summary of the performance of the programmes of the Department and the targets achieved during the 2022/23 financial year: Table 1: Performance per Programme 2022/23 Programme Number of Number of % of targets planned targets targets achieved achieved 1.

Administration 2.

Citizen Affairs 3.

Immigration Affairs 4.


Institutional Support and Transfers Total Source: DHA Annual Report 2022/23, adapted 18 4 4 5 31 16 4 1 1 21 89 100 25 20 71 The DHA is responsible for providing efficient and secure services to the citizens and residents of South Africa, such as issuing identity documents, passports, visas, permits, and certificates.

The DHA has three main branches: Administration, Immigration, and Civic Services.
In this report, we will compare the results of these three branches in the annual reports for 2021/22 and 2022/23.

Programme 1: Administration consists of five sub-programmes: • Ministry, • Management, • Corporate Services, • Financial Services, and • Internal Audit.

The DHA shifted an amount of R265.3 million from the rest of the programmes to fund the Administration programme.
The approval was granted by the National Treasury on 8 March 2022 for goods and services allocations to be used within the same vote and programme for compensation of employees of the Department in terms of section 5(1)(b) of the 2021 Appropriation Act.
In addition, approval was granted in terms of section 6.3.1(c) of the Treasury Regulations to utilise R210 million of savings from the procurement of the Passenger Name Records (PNR) system, and R40 million from the Border Management Agency (BMA) earmarked allocations towards funding various categories of goods and services and compensation of employees related items.

29 185 According to the annual reports, the Administration branch achieved 71% of its targets in 2021/22 and 89% in 2022/23.
The main improvements were in the areas of human resource management, information technology, and risk management.

The main challenges were in the areas of supply chain management, asset management, and audit outcomes.

Other improvements were noted in the sub-programmes of Corporate Services and Office Accommodation, which increased their performance from 75% to 83% and from 67% to 75%, respectively.

The sub-programmes of Ministry and Management maintained their performance at 100% and 83%, respectively.
Programme 2: Citizen Affairs focuses on services to citizens and residents.

Its purpose is to provide secure, efficient and accessible services and issuance of enabling documents to citizens and residents.
The objectives are to ensure that registration at birth is the only entry point to the population register; that citizens are provided with smart ID cards when they turn 16 years of age; and that secure, machine-readable passports are provided to adults and children within 13 to 18 working days from the date of application through the live capture system.

This programme achieved 100% of its targets in 2022/23, the same as in 2021/22.
The Civic Services branch of the Department of Home Affairs is responsible for providing efficient and secure identification, status and civic services to citizens and other clients.

The branch consists of four sub- programmes: • Civic Services Support, • Identity Services, • Status Services and Travel Documents and • Citizenship.

The annual reports of 2021/22 and 2022/23 provide detailed information on the performance indicators, targets and achievements of each sub-programme.
A comparison of the two annual reports reveals that the Civic Services branch has demonstrated some progress and innovation in delivering its mandate but also needs to address some gaps and weaknesses that hamper its efficiency and effectiveness.

The branch exceeded its target of issuing 2.8 million smart ID cards in both years, issuing 3.1 million in 2021/22 and 3.2 million in 2022/23.
The branch reduced the turnaround time for issuing birth certificates from 30 days to 15 days in 2022/23, meeting its target for the first time.

The branch increased the number of mobile units deployed to rural and remote areas from 40 in 2021/22 to 50 in 2022/23, enhancing its service delivery and accessibility.

The branch achieved a 100% compliance rate with the International Civil Aviation Organization (ICAO) standards for passport security features in both years.
Programme 3: Immigration Affairs performed very poorly during the 2022/23 financial year, only achieving 25% of its set targets, which is a decline from the 50% that was achieved in 2021/22.

30 186 In 2021/22, the sub-programme achieved six out of eight indicators, partially achieved one indicator, and did not achieve one indicator.

The indicator that was partially achieved was the percentage of visa applications adjudicated within eight weeks at missions abroad.
The target was set at 85%, but the actual performance was only 79%.

The reason for this underperformance was attributed to the impact of the COVID-19 pandemic on the operations of missions abroad and the reduced capacity of staff due to lockdowns and travel restrictions.

The indicator that was not achieved was the percentage of permanent residence applications finalized within eight months at the head office.

The target was set at 80%, but the actual performance was only 55%.
The reason for this underperformance was attributed to the backlog of applications that accumulated over the years due to various factors such as system challenges, staff shortages, litigation cases, and complex cases that required more verification and investigation.

In 2022/23, the sub-programme improved its performance by achieving seven out of eight indicators and not achieving one indicator.
The indicator that was not achieved was again the percentage of permanent residence applications finalized within eight months at head office.

Programme 4: Institutional Support and Transfers provides institutional support and the transfer of funds to the Independent Electoral Commission (IEC), the Represented Political Parties’ Fund and the BMA.

The IEC is a constitutional Chapter 9 institution.


The department does not exercise oversight over the IEC or the Represented Political Parties’ Fund and simply transfers the budget allocated to these entities in accordance with the drawdowns of these entities.

Out of the four programmes, this is the worst performing programme, scoring only 20% in terms the of success rate of its targets in 2022/23, which is also a decline from the 57% that was archived in the previous financial year of 2021/22.
In conclusion, the DHA has shown progress in achieving its strategic objectives and delivering its services to the public in both years.

However, there are still areas that need improvement and attention, such as asylum seeker management, supply chain management, and audit outcomes.
7.2 DHA Annual Financial Performance Summary The Immigration and Civic Services branches are the main sources of revenue for the DHA, as they collect fees from various services such as issuing passports, visas, identity documents, birth certificates, etc.

According to the annual reports, the total revenue from these branches increased by 12.5% from R2.8 billion in 2021/22 to R3.2 billion in 2022/23.
This was mainly due to the increase in the number of applications and the introduction of new fees for some services.

However, the expenditure of these branches also increased by 15.6% from R2.7 billion in 2021/22 to R3.1 billion in 2022/23.

This was mainly due to the increase in personnel costs, which accounted for 76.4% of the total expenditure in 2022/23.
The DHA also invested in improving the infrastructure and technology of these 31 187 branches, such as upgrading the biometric system, enhancing the online application platform, and expanding the network of offices and mobile units.

As a result, the net surplus of these branches decreased by 36.4% from R97 million in 2021/22 to R62 million in 2022/23.

The surplus ratio, which measures the efficiency of revenue generation over expenditure, also decreased from 3.5% in 2021/22 to 1.9% in 2022/23.
This indicates that the DHA needs to improve its financial management and optimize its resource allocation to ensure the sustainability and effectiveness of these branches.

Programme 1: Administration saw an increase in its budget from R 2.6 billion in 2021/22 to R 2.8 billion in 2022/23.

As per the appropriations, this programme spent 100% of its budget in both financial years, with transversal information technology management as one sub-programme into which a lot of spending goes.
Programme 2: Citizen Affairs’ budget also soared from R 3 billion in 2021/22 to R 3.9 billion in the 2022/23 financial year.

Unlike the previous financial year, the programme’s expenditure did not reach the ceiling (100%) in 2022/23 as only 92% of the expenditure was utilized.

Programme 3: Immigration Affairs spent 100% of its budget of R 1.4 billion in 2021/22 and spared 5% of its similar budget of R 1.4 billion in 2022/23.
Given that there was only a 0.6% increase in the programme budget from the previous year, in real terms there was around 6.3% reduction in funds after the high inflation for the year.

The saving in Immigration Services was a result of the new Lindela contract entered into during the year under review being awarded at much better rates.

In addition, the saving on passenger name records (PNR) was used to cover other expenditure.
Programme 4: Institutional Support and Transfers with three sub-programmes also saw an increase in its budget from R 2.4 billion in 2021/22 to R 3 billion in 2022/23.

The programme only spent 90% of its budget in 2022/23 as compared to 100% spent in the previous financial year, 2021/22.

7.3 AGSA Opinion on the DHA 2022/23 Financial Report The Department obtained its seventh unqualified audit opinion in the 2022/23 financial year.
Without discounting the efforts made to achieve a ‘clean’ audit outcome (unqualified with no findings).

Emphasis of matter • Impairment of receivables: as disclosed in note 12.6 to the financial statements, an amount of R540 753 000 was impaired as a result of the department's inability to recover these receivables.
32 188 • Internal control deficiencies: There are no documented policies and procedures to guide the collection of money due to the Department for fines and penalties issued in terms of sections 50(3) and 50(4) of the Immigration Act.
7.4 Human Resources The following tables summarise the number of posts in the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment as at 31 March 2023: Table 2: Employment and vacancies by programme as of 31 March 2023 Programme No.

posts on No.

of posts filled Vacancy No.


of employees approved establishment 1 048 6 057 717 963 5 682 668 7 822 7 313 Administration Citizen Affairs Immigration Affairs Total Source: Department of Home Affairs (2023) rate additional to the establishment 8.11 6.19 6.83 6.51 32 0 0 32 For years, the Department could not replace staff as and when positions became vacant, given the Compensation of Employee (COE) ceilings imposed by the National Treasury.
As of 31 March 2023, the staff complement of the three programmes consisted of 7 313 positions filled, while the number of posts on approved establishment was 7 822.

Therefore, the DHA had a vacancy rate of 6.51% as of 31 March 2023.

8.
8.

IEC 2022/23 ANNUAL REPORT 8.1 IEC Programme Performance Key successes in 2022/23 • The Commission achieved a third successive clean audit outcome from the annual external audit process, which indicates that the Commission has effectively managed financial resources in compliance with the legislation.

• Programme 4: Party Funding achieved 100% of its targets in terms of contributing to the enhancement of transparency in elections and party funding.
Key challenge(s) in 2022/23 33 189 The Commission continues to experience the same challenges that were reported during previous financial years.

These are: • The Commission continues to achieve below 80% of its overall planned targets, and the 2022/23 financial year saw a decline in performance to 71% from 77% achieved in 2021/22.
• The Commission is still grappling with recruiting and retaining a talented permanent staff complement to meet operational requirements, as well as constitutional obligations due to the challenges in the HR processes.
Programme Performance Table 1 below provides a summary of the Commission’s strategic outcome-oriented goals and general performance per programme for the 2022/23 financial year: Table 2: Programme Performance 2022/23 Programme Strategic Outcome- Number of Number Number not % oriented goal targets achieved/e achieved Achieved xceeded 1.

Goal 1: Administration Strengthening governance, institutional excellence, professionalism and enabling business 3 2 1 67% processes at all levels of the organisation 2.
Electoral Goal 2: Operations Achieving pre- eminence in the area of managing elections and referenda, including the strengthening of a cooperative relationship with political parties 2 1 1 50% 3.

Outreach Goal 3: Strengthening electoral democracy 5 3 2 60% 4.
Party Funding Goal 4: Contributing to the enhancement of 34 190 transparency in elections and party 3 funding Total 14 Source: Electoral Commission Annual Report 2023. adapted 3 10 0 100% 4 71% It is worth noting that as per the above table, only Programme 4: Party Funding was able to achieve 100% in the 2022/23 financial year, same as 2021/22.
Programme 3: Outreach saw a decline from a 100% achievement rate in 2021/22 to 60% in 2022/23, meaning in terms of contributing to the enhancement of transparency in elections and party funding, the programme’s performance decreased by 40%.
Another decline in performance rate is noted in Programme 1: Administration, the goal to strengthen governance, institutional excellence, professionalism and enabling business processes at all levels of the organisation saw an average performance percentage of 67% in 2022/23, which is a decrease from 77% that was achieved in 2021/22.

On a much more positive note, Programme 2: Electoral Operations saw an increase from 0% in 2021/22 to 50% in 2022/23.
Programme 1: Administration is responsible for strengthening institutional effectiveness at all levels of the organisation.

It also provides the overall strategic management of the Electoral Commission, as well as centralised support and financial management services in order to help achieve strategic outcome-oriented goals.

This programme has about 4 main strategic objectives on which strengthening institutional effectiveness is dependent.
The first one is exercising leadership and governance, monitoring and evaluation to ensure the effective implementation of the Electoral Commission’s core mandate, strategic outcomes and outputs, aligned with the corresponding budget allocations and risk mitigation.
In the last two financial years of 2021/22 and 2022/23; this specific objective has been achieved by reaching a target number (4) of quarterly reviews of the Strategic Risk Register by the Executive Risk Management Committee within 30 days after the start of the next quarter.
The second objective of this programme is to provide a cutting-edge, stable, secure ICT environment that meets all the functional needs of the Electoral Commission and supports innovative business processes, according to the Electoral Commission Annual Report, this target was not achieved in 2022/23 due to load-shedding, however, the same target was achieved in 2021/22 financial year.
Thirdly, this programme also developed a strategic objective to recruit and retain a talented permanent staff complement to meet operational requirements, as well as constitutional obligations, and this objective was not achieved in 2022/23 as the filling of posts was delayed by the unexpected withdrawal of the risk assessment service provider as well as the HR review matter in the Labour Court.
This was also the case in 2021/22, when the target was not achieved because of delays in the Commission for Conciliation, Mediation and Arbitration (CCMA) challenge of the IEC HR review implementation process.

The last strategic 35 191 objective of this program is to effectively manage financial resources in compliance with legislation, and for the past three consecutive financial years, the Commission has managed to excel in this area.
Programme 2: Electoral Operations focuses on the strategic outcome of managing and delivering free and fair elections by striving for excellence at the voting station level; ensuring accessibility and suitability of voting facilities and processes; managing results; maximising electoral justice for all stakeholders in the electoral process; enhancing the credibility of the voters’ roll; ensuring compliance with legal prescripts; and continuously improving the legislative framework.
This programme has two strategic objectives as per the 2022/23 Electoral Commission Annual Report.

The first one is to manage free and fair elections in accordance with the applicable electoral timetables to ensure the efficient and credible execution of the mandate of the Electoral Commission.
This specific objective was achieved in 2022/23, whereas in the previous financial year 2021/22, the target was not achieved because the Electoral Court set aside the Ward 33 election in Enoch Mgijima Municipality, principally because of circumstances surrounding the elections in the ward were dangerous and chaotic.

The second strategic objective of this programme is to maintain a credible national voters’ roll that is cutting- edge technology.
This objective was not achieved in 2022/2 due to a variance ascribed to a 2021/22 reduced baseline of no voting station-based registration drives owing to the period being a non-election period.
In the previous financial year 2021/22, this target was not achieved because it is common practice for the Commission to hold two general voter registration events ahead of a general election but owing to COVID- 19 and the regulations promulgated to curb the spread of the virus, it was not possible for the Electoral Commission to schedule two registration events.

Programme 3: Outreach focuses on the strategic outcome of informing and engaging citizens and stakeholders in electoral democracy.
The programme fosters participation in electoral democracy by providing civic and democracy education on a continuous basis; voter and balloting education as may be required by each election; strategic and thought leadership on matters pertaining to electoral democracy; broadening our research agenda and issuing publications; increasing visibility through proactive consultation, effective communication, and presence among our stakeholders and communities; facilitating platforms for political dialogue; cultivating an environment conducive for the holding of free and fair elections; and constantly engaging the media.
This program has various strategic objectives set to contribute to achieving positive outcomes of building and encouraging informed and engaged citizens and stakeholders in electoral democracy.

The first target according to the annual report is to provide research and thought leadership to strengthen electoral democracy.

Despite the Commission achieving this output in 2021/22; in 2022/23, the Commission was not able to meet this target due to outstanding research.
Under this program, the Commission also seeks to actively promote and foster awareness and participation in electoral processes through civic and democracy 36 192 education (CDE) programmes.
In 2022/23 this target was achieved and in fact exceeded due to additional resourcing of capacity to mitigate the risk of underperformance as a result of a revised target, which was also the case in 2021/22, owing to an increase in the number of civic and democracy education events as a build- up to voter registration and Election Day.
One other output that the Commission planned to achieve under this program was to interact with domestic, regional and international stakeholders to build an understanding of the Electoral Commission’s role in delivering credible elections, and this target was achieved because the Commission held several meetings with key stakeholders in 2022/23.

Programme 4: Party Funding focuses on the strategic outcome of contributing to the enhancement of transparency in elections and party funding.
The programme manages party funding and donations in compliance with legislation and strengthens cooperative relationships by providing consultative and liaison platforms between the Electoral Commission and political parties and candidates, using systems, people and processes that are sustainable.

It also provides effective management of the registration of political parties and processing of the nomination of candidates for various electoral events.
In terms of its strategic objective or targets, this programme performed exceptionally well and achieved all its targets in 2022/23, as it did in the previous financial year of 2021/22.

8.2 IEC Budget Allocation and Expenditure: Financial performance 2021/22 vs. 2022/23 Programme Budget Total percentage 2021/22 2022/23 of Expenditure R’000 R’000 1.

Administration 2.

Electoral Operations 3.

Outreach 4.


Party Funding Total 840 1 905 327.9 51.7 3 126.1 838.9 781.3 162.2 25 1 807.9 % 100 100 100 100 100 Source: Portfolio Committee on Home Affairs 2022/23 Budgetary Review and Recommendation Report At the beginning of the 2022/23 financial year, the Commission received a budget allocation of R 2.4 billion, which was then reduced to R 2.2 billion following the MTEF Budget cut of about R 240.241 million.
On the other hand, in the 2021/22 MTEF budget, the Commission was allocated R 2.3 billion, which is higher than the 2022/23 budget.

According to the Commission, the decrease in the allocated budget in 2022/23 is due to the fact that it is a non-election year.

37 193 Programme 1: Administration’s budget has decreased from R 840 million in the previous financial year (2021/22) to R 838 million in the 2022/23 financial year.
The programme’s expenditure indicates that about R 230.417 million was spent on the compensation of employees, while R 560.749 million was spent on procuring goods and services.

In real terms, when inflation is considered, the budget of this programme has decreased by R 37 million (or 4.2%).

Programme 2: Electoral Operations also received a budget cut from R 1.9 billion in the previous financial year to R 781.3 million in the current financial year.
This budget decrease equates to 60.7% (R1.15 billion) in real terms.

As indicated, the significant budget decreases compared to the previous financial year were due to the Local Government Elections.

Both Programme 3 and 4 received decreased allocations for the 2022/23 financial year.

Programme 3: Outreach budget declined from the 2021/22 financial year's allocation of R 327.9 million to R 162.2 million in 2022/23.
In real terms, Programme 3 budget received the most reduced budget in percentage terms by R 172,2 million (52,6%).

Programme 4: Party Funding’s budget was reduced by 53.7%, from R51.7 million in 2021/22 to R 25 million in the 2022/23 financial year.

All the programmes spent their budgets, meaning in terms of expenditure, 100% of the funds were used.
8.3 IEC Human Resources The Human Resources Department embarked on a consultation process with the union in a bid to facilitate agreement on the filling of critical positions at the regional level to ensure the timely provision of human capacity.

The Employment Equity (EE) Report was compiled and submitted to the Department of Labour in January 2023.

The current organisational EE Plan expired in September 2023, and the process for the development of a new plan has commenced.
There was a reduction in the number of cases referred to the CCMA during the 2022/23 financial year.

In preparation for National and Provincial Elections (NPE) 2024, Human Resources Management commenced with the development of recruitment and payment plans, as well as the review and development of electoral staff training material.
Table 2: employment and vacancies according to rank for the 2022/23 financial year: Level Number of Approved Number Percentage of employees Posts of total vacancies vacancies Top Management 5 5 0 0 38 194 Senior Management Professional Qualified Skilled Semi-skilled Unskilled New positions (not yet evaluated) Total 44 122 671 24 40 0 906 44 165 745 30 41 75 1105 0 43 74 6 1 75 199 0 21.6 37.2 3 0.5 37.7 100 Source: Electoral Commission Annual Report 2023. adapted Employment equity targets among male and female staff members for the 2022/23 financial year: Table 3: Employment equity targets among male staff members for 2022/23 Level African Coloured Indian White Current Target Current Target Current Target Current Target Top Management Senior Management 4 15 2 22 Professional 63 93 Qualified Skilled Semi-skilled Unskilled Total 269 334 11 2 13 18 364 482 0 3 4 22 1 0 30 0 3 11 38 2 2 56 Source: Electoral Commission Annual Report 2023. adapted 0 1 6 1 0 0 8 0 1 4 14 1 1 0 2 3 3 0 0 1 2 10 38 1 2 21 8 54 Table 4: employment equity targets among female staff members for 2022/23 Level African Coloured Indian White Current Target Current Target Current Target Current Target Top Management Senior Management 0 17 2 18 Professional 27 77 Qualified Skilled Semi-skilled Unskilled Total Source: Electoral Commission Annual Report 2023, adapted.
8.4 Report of the AGSA on IEC Annual Financial Statements Opinion The Auditor General audited the financial statements of the Electoral Commission, which comprise the statement of financial position as of 31 March 2023.

According to the Auditor General, the Commission achieved a clean audit (unqualified with no findings) in the 2022/23 financial year, meaning the financial statements are free from material findings.
In terms of the basis for the Auditor General’s opinion, the AG conducted the audit in accordance with the International Standards on Auditing (ISAs) and therefore believes that the audit evidence obtained is sufficient and appropriate to provide a basis for such an opinion.

This is the 3rd consecutive clean Audit.


Emphasis of matter Intangible assets and Prior period error: as disclosed in note 30 (prior period errors) and note 9 (intangible assets) to the financial statements for the year ended 31 March 2023, the useful life of internally generated intangible assets was reassessed to indefinite and amortisation on these assets would cease.
The reassessment was treated as a prior period error on which management judgement was to reverse accumulated amortisation on these intangible assets.
Report on the Audit of the annual performance plan In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, the Auditor General is mandated to audit and report on the usefulness and reliability of the reported performance against predetermined objectives for selected programmes presented in the annual performance report.
Therefore, the Auditor General selected Programme 2: Electoral Operations and Programme 3: Outreach in the annual performance report for the year ended 31 March 2023 for auditing.

The Auditor General indicated that these programmes because they adequately measure the constitutional institution’s performance on its primary mandated functions and that is of significant national, community or public interest.
The reported performance information is presented in the annual performance report in the prescribed manner and there is adequate supporting evidence for the achievements reported and for the reasons provided for any over- or underachievement of targets.

Internal Control Deficiencies 40 196 There are weaknesses in the internal controls around the process of compiling and collating performance information reported in the performance report.

9.
9.

GPW 2021/22 ANNUAL REPORT 9.1 Performance Overview • The Annual Report for the financial year 2021/22 represents the progress that was made in achieving the performance targets set out in the Annual Performance Plan (APP) for the year under review.

• GPW had a total of 18 targets set for the financial year and 13 of these targets were attained, translating into 72% achievement.
• The remaining five targets that were not achieved relate to the following: implementation of the reviewed security model; obtaining a clean audit opinion; the attainment of the 10% net profit margin; the submission of the Annual Financial Statements (AFS) and the In-Year-Monitoring Reports by the stipulated timeframes.

• The targets within the Branch: Finance were adversely affected by the system failure and data loss.
Plans have been put in place to address challenges that contributed to non-achievement of these targets in order to improve overall performance.

• GPW has enhanced its internal capacity with skilled professionals to support GPW in the execution of its plans in areas such as Finance, ICT and Legal Services.
• The Government Component continued to strive to align its operations to the strategic goals that contribute to the national government outcomes and objectives as outlined in the National Development Plan.

• A gradual increase in revenue was experienced post relaxation of the COVID-19 restrictions, which positively enabled GPW to sustain its operations.

• The Ministerial Review Panel (MRP) was appointed to investigate the circumstances around the ICT system crash.
GPW is in the process of implementing the recommendations from the report and these are continuously monitored.

• GPW’s catastrophic hardware crash and systems failure that led to the loss of critical data in February 2021 and March 2022, left a lasting impact on the Government Component’s ability to produce credible Annual Financial Statements (AFS) and ultimately, the timeous tabling of the Annual Report to Parliament.
• The knock-on effect of this loss of financial information, will remain with GPW over the foreseeable future, but management has developed focused mitigating to address challenges relating to risks of systems • In order to address above challenges, GPW management has been engaging critical stakeholders such as the National Treasury, Office of the Accountant General (OAG) and Auditor General of South Africa (AGSA) to present specific challenges caused by the system failure, including plans to address them.
41 197 Total planned Achieved Not Achieved % Achieved targets 18 13 5 72% 9.2 GPW Financial Performance The AFS for 2020/21 were submitted to the AGSA on the 31st May 2021, one year after its statutory submission date, due to the data losses experienced by GPW on the 04th February 2021 The audit report was signed off on the 20th September 2022.

The Annual Report for the same period was prepared by GPW management and tabled by the 30th September 2022.
GPW received a disclaimer audit opinion for the 2020/21 AFS due to the data loss which eroded the general ledger.

The balances in the AFS were not supported by the general ledger which resulted in limitation of scope.

GPW management put all its efforts in recapturing the data lost covering the period from November 2019 to February 2021.
Despite all these efforts, the recaptured data was again lost when the database crashed on the 25th March 2022, and wiped out the financial data and the supporting schedules.

The data loss adversely impacted the opening balances from the 1st of April 2020.

This negatively affected the compilation of credible financial statements for the 2020/21 financial year, and the knock-on effect will be experienced by GPW in the next financial years.
Consultation with relevant stakeholders such as National Treasury, OAG and AGSA serves to address this challenge, to support the entity to find solutions that will turn this situation around to the benefit of GPW.

GPW management have developed plans to address identified challenges related to the system failures and data losses in the short, medium and long term, in order to improve operations and gradually reverse the adverse audit opinions.
AFS caption Budget Actual Variance Reasons R’000 R’000 Revenue Due to the second national Covid- 1 495 760 1 207 226 288 534 19 lockdown, between July 2021 Cost of Sales and September 2021, GPW was not functioning optimally, which resulted in a decrease in revenue generation.

Cost of sales is in direct relation to 913 811 675 591 238 220 revenue generation, hence, a decrease in revenue will cause a decrease in Cost of sales.
The allocated budget was not utilised 42 198 in personnel costs, material usage, operational expenditure and depreciation.

General, Admin Limited spending on travel and Expenses and 411 703 385 781 25 922 subsistence, training and courier employee cost Capital expenses led to a cost-saving when compared to budgeted expenses.

This was a direct result of Covid-19 restrictions.


Even though GPW is in the process of filling open positions, not all open positions have been filled during the 2022 financial year, which led to reduced spending on personnel costs.

Due to COVID-19 and the Expenditure 541 500 47 047 494 453 international lockdown of borders, GPW halted purchases of machinery from abroad and other capital expenditure.

GPW also amended their asset register by expensing items valued at R 7 000 and less.
This affected the calculation of the amount spent on additions to minor assets.

10 DELIBERATIONS ON THE ANNUAL REPORTS In response to the input from members of the Committee, the following was provided: Department of Home Affairs (DHA).

10.1 The department reported that several offices would be opened soon including in Mokopane, Polokwane, Thohoyandou, KwaDukuza and Taung.
The was also considering expansion to the Cresta and Southgate Malls in Johannesburg, the Pavilion Mall in Durban and the Tyger Valley Mall in Cape Town.

There are 127 mobile offices and the 100 new additional mobile offices were in production.

43 199 10.2 The DHA received an allocation of 742 posts in the previous financial year and the department has submitted a second business case for additional capacity.
It was also indicated the capacity issue was not unique to the DHA but the whole security cluster.

10.3 Of the eight (8) top management of the DHA only one (1) was a female, however, three (3) vacant posts needed to be filled.

10.4 The DHA was working on the Task Team Report that reviewed the process that was followed to issue permits and visas.

The work was continuing and it would take time to finalise.
10.5 In terms of inspection, the DG reported that the JCPS has developed a strategy to deal with illegal migration.

The plan was budgeted and it was being implemented.

The DHA was involved in the reported arrest of 145 illegal foreign miners in the Northen Cape.

All of them were transferred to Lindela Repatriation Center for deportation.

10.6 With regards to the VFS contract, the DHA was looking at the selection process at the end of the VFS contract in a year.
There was a transactional advisor that was appointed to assist with the PPP process.

10.7 The DHA has a Memorandum of Understanding with the Department of Health on early birth registration and LRBs.

Certain facilities provide DNA testing and these health facilities were designated by the Department of Health.

10.8 The DG reported that in the previous financial year, the DHA collected R123 million out of the R147 million and in addition, DIRCO paid R28 million.
The DHA was in discussion with DIRCO about the R567 million.

10.9 The DHA has managed to reduce the contingent liability from R2.3 billion to R239 million and this followed the discussion between the department and AGSA on the methodology for calculations.

10.10 The DG reported that the Minister of Home Affairs has issued instructions with immediate effect to allow naturalised persons to apply for Smart ID Cards.

The department was working on modifying the related systems.
10.11 The Constitutional Court has declared that it was unconstitutional for South Africans to lose their citizenship once they acquired citizenship of another country without informing the Minister of Home Affairs.

The department was waiting for a directive from the Constitutional Court to ensure implementation.

10.12 On the issue of corruption relating to the photo swaps in applying for passports and identity documents; the Counter Corruption and Security Services evaluated and closed these loopholes .
The officials involved were dismissed by the department and charged criminally.

The last case of photo swapping was in 2021.

10.13 The Department does not have programs to evaluate the productivity of staff but has signed an MOU with Productivity SA with a view of implementing Productivity Improvement Program (PIP).

The program is aimed at ensuring efficient and effective utilisation of resources to achieve maximum outputs.
This will be rolled out as a pilot in the operations areas, namely, Permitting unit with the view of full scale implementation in other areas of the Department.

44 200 10.14 The Department does not have an integrated system to evaluate customer satisfaction levels.

It utilizes customer complaints logged with the Contact Centre to inform the development of the service delivery improvement plan for the Department that is presented to EXCO and approved by DG then submitted to DPSA on an annual basis.
It also conducts Customer satisfaction surveys through the Research unit and the last survey was conducted in 2022 with the results reported to EXCO and MMM.

10.15 The upgraded solution to be rolled out in the Contact Centre will have an online Customer Satisfaction evaluation module that will be used to measure customer satisfaction levels and inform quality assurance and customer experience enhancement strategies to be implemented.
10.16 Regarding branch revenue vs expenditure, what is the forecast of net surplus per programe in the medium 3-5 year term?

10.17 It was responded that the Appropriation Statement per programme on page 252 of the 2022/23 Annual Report is referred to.

For the 2022/23 financial year, the DHA was allocated a budget of R11,1 billion.

Of this budget, R10,4 billion was expended, equating to a 93,7% of the final budget.

The appropriation is voted funds allocated to the Department by Parliament.
10.18 For Programme 2: Citizen affairs, the budget allocated / appropriation increased from R2,97 billion in 2021/22 to R3,89 billion in 2022/23.

This equates to a 23,5% increase for this Programme.

This significant increase is as a result of the additional R500 million allocated for the digitisation project.

10.19 For Programme 3: Immigration affairs, the budget allocated / appropriation increased marginally from R1,39 billion in 2021/22 to R1,4 billion in 2022/23.
This equates to an increase of 0,08% for this Programme.

10.20 The nature of Departmental Revenue (generated mainly through the sale of passports, IDs and visas) is increased from R718 million in 2021/22 to R1,029 billion in 2022/23.

These two programmes constitute the core of the Department and receive the bulk of the budget allocations / appropriations.

Both these programmes did not spend their full budget allocations in 2022/23.

In 2022/23, Civics spent 91,6% of its allocation and Immigration 95%.
A surplus ratio cannot be applied to Departments that must use the Modified Cash Standard.

So Departments do not operate in order to generate surpluses, but to spend its allocations fully and effectively.

10.21 The following DHA sites will be connected to a network identified by CSIR and they are: King Shaka IA, Menlyn, Potchestroom, Soshanguve, Umgeni and Wynberg during the month of November 2023.
This process will be achieved by peering the networks by CSIR and SITA at the SITA Data Center (Centurion) then disconnecting the selected offices/sites from SITA network and re-connecting to the network.

The fail over for the selected sites if the overlay cause disruption is to connect back to SITA network (roll-back).

10.22 The first phase of the project to digitise records recruited a total of 2000 youth.

Of these, some have received other appointments and the number has reduced to 1146.
The Department is filling the vacancies.

The second phase is to recruit 4000 youth and this recruitment is underway.

The first phase of the digitisation process focused on preparation of records; that is, detailed indexing and condition 45 201 assessment of records.

The second phase which includes full scanning and indexing of records in the production environment started in June 2023 in Gauteng at our New Cooperation Building, Pretoria.
As at 31 August 2023, the total number of records that had been digitised are 328 800, inclusive of 7 141 388 images as at 13 October 2023.

This performance is far above the target of 12 000 records set for the second quarter (July – September 2023) of the 2023/24 financial year.

10.23 Note 14 on receivable revenue in the annual report related referring to surpluses indicates DIRCO foreign revenue still owed to National Revenue Fund.

Why is this a surplus?


10.24 DIRCO collects revenue on behalf of the DHA at its foreign missions abroad.

Money so collected must be paid by DIRCO into the National Revenue Fund (NRF).

During 2022/23 DIRCO collected and paid over to NRF R146,8 million of which R122,6 million was towards 2022/23 collections.

In addition, DIRCO paid over to NRF R27, 9 million during 2022/23 in respect of monies collected at missions in prior years.
See the narrative to Note 14 Departmental revenue and NRF receipts to be surrendered to the NRF on page 315 of the Annual report.

10.25 Money collected by DIRCO is accounted for as a Receivable in the DHA books.

The contra transaction is the payable to the NRF.

The Receivable for DIRCO is bigger than the Payable as DIRCO did not / does not pay all money collected in a particular financial year to the NRF.

As at 31 March 2023, DIRCO owed the DHA / NRF R521 million.
The DHA is engaging DIRCO to pay over all revenue collected at the missions to the NRF.

10.26 Statistics drawn from the IMS Publication Quarter 2 Report of 2023/24 show that at 95% confidence level, the average number of weeks to finalise Critical Skills work visas is between 4 and 4,3 weeks.
10.27 Statistics drawn from the IMS Publication Quarter 2 Report show that at 95% confidence level, the average number of weeks to finalise General work visas is between 4,8 and 5,3 weeks while the average number of weeks to finalise Business visas is between 5,6 and 6,9 weeks.
10.28 Based on section 38 of the Border Management Authority Act, 2020, both land and infrastructure at the 53 land ports of entry should be transferred from the custodianship of the Department of Public Works and Infrastructure (DPWI) to the Border Management Authority (BMA).

At the point of transfer, the financial allocation for the maintenance and repairs of such properties would be transferred from DPWI to the BMA by the National Treasury.
In the past financial year (2022/2023), a total of 31 land ports of entry had been audited while the remaining 22 land ports of entry are being audited in the current financial year (2023/2024).

With the completion of the audit process in the current financial year, all the 53 land ports of entry would be transferred and registered under the BMA at the Deeds Office.
Therefore, the BMA is currently co-managing the facilities at all the 53 land ports of entry together with DPWI until the end of the transitional process (31 March 2024) and the entire portfolio and relevant financial resources are moved from DPWI to the BMA.

10.29 The underspending on COE is explained in the Explanatory Notes to the Appropriation Statement (page 290 of the 2022/23 Annual report).
In this regard, it is reported that the main contributor to the underspending on COE was as a result of the late funding and subsequent underspending in the digitisation project and the wrong allocation of the digitisation budget for the employment of the 10 46 202 000 youth as COE and not Goods and Services.

Please also see the narrative on page 25 of the Accounting Officer’s report in the 2022/23 DHA Annual Report.

Electoral Commission of South Africa (IEC).


10.30 The matter of the indelible ink during election day only happened during the general elections in 2019.

This was not widespread and the matter was resolved.

These were not the only safeguards used to ensure that voters did not vote more than once.

The incident of the indelible ink did not recur in the 2021 Local Government Elections.
The IEC received the VMDs late because of the Covid-19 restrictions and there is a plan to conduct a dry run before weekend registration in November 2023.

10.31 On the matter of the requirement for South Africans living overseas needing to have a passport and identity document to vote, people who had lost their citizenship could still hold onto their passport and Identity documents and thus a double check was implemented to ensure they cannot vote.
10.32 Even though the Internal Audit and Risk Committee expressed satisfaction with the Internal Audit function effectively discharging its responsibilities during the reporting period, the Auditor General pointed out that there are weaknesses in the internal controls around the process of compiling and collating performance information reported in the performance report.

Has the Commission responded that it had addressed those challenges and other recommendations by AGSA.
There is ongoing detailed compliance review of performance information to ensure accuracy and completeness of reported information.

Additionally, a process of internal audit performing an audit of performance information ahead of annual audit by AGSA is being institutionalised as additional assurance.
10.33 Why is there no progress on the irregular expenditure identified in previous years amounting to R66,5 million; it is indicated in the Annua Report that all irregular expenditure is investigated with consequence management for those who caused or permitted irregularities but there was no discipline or recovery actions in tables e) and h) on pages 37/38?
10.34 It was responded that the R40 million of the R66,5 million, relates to irregular expenditure disclosed in the Internal Audit panel in 2021/22 financial year.

R10 million relates to historical local office lease arrangements mainly with Municipal Councils.

Requests for condonation have been submitted to National Treasury in terms of the Irregular Expenditure Framework.
The balance of the matters relate to old cases in which consequence management cannot be implemented because the responsible officials are no longer in the employ of the Commission.

Guidance will be sought from National Treasury on these matters.

10.35 What is the difference between the irregular expenditure amounts of R66,5 million and R28,49 million stated in the first 2 tables on page 37 of the annual report?
The balance of the matters relate to old cases in which consequence management cannot be implemented because the responsible officials are no longer in the employ of the Commission.

Guidance will be sought from National Treasury on these matters.

47 203 10.36 Government Printing Works (GPW) 10.37 GPW welcomed the suggestions by the Committee of a meeting with critical stakeholders such as the National Treasury and the AGSA to assist it with the matter of data loss.
The printing of passports, examination papers and the production of the manufacturing infrastructure were not affected by the data loss in 2021 and 2022.

10.38 The security upgrades that were conducted were in relation to the installation of the special scanners for access control and cameras.

10.39 GPW was in the process of replacing the backup systems infrastructure and was working with the State Information Technology Agency (SITA).
There had been delays within SITA and the matter was escalated to the Managing Director.

10.40 Status of the Master Plan: Masterplan facility is a state-of-the-art factory that is meant to house all GPW’s modern machinery and equipment.

The Masterplan Project, was assigned to the Department of Public Works and Infrastructure since 2012.
The delays experienced in the implementation of this project, led to GPW management’s decision to the appointment of the DBSA as an Implementing Agent in July 2023, in order to gain traction.

The DPWI has been requested to cede all outstanding documents to both GPW and the DBSA, in order to facilitate progress on this project.

A letter has been sent to the acting DG of DPWI in August 2023, requesting her to expedite submission of these documents.
A response is awaited but followed up is being made by GPW.

10.41 Engagements had been underway between GPW, DPWI, Infrastructure SA, and DBSA to plan and expedite the execution of the Masterplan project.

Completion of this project will enhance the printing capacity of GPW for local customers as well those located in the SADC and other African countries.
10.42 Efforts to Get New Business Abroad: GPW has been implementing its Integrated Marketing and Communication Strategy and Plan, with a strategic intention of expanding its business into countries located outside the borders of the Republic of South Africa.
The GPW has been participating in the Joint Ministerial Committees (JMC) and Bi-National Commissions (BNC’s) in collaboration with the Department of Home Affairs (DHA) and Department of International Relations and Cooperation (DIRCO), in order to market its services to countries in the SADC Region and other African states.

In the current year, the GPW attended BNC’s in Namibia, DRC and Ethiopia and also participated in the JMC held in Ethiopia.
Direct engagements outside JMC’s and BNC’s are also facilitated in order to present GPW’s products and services, and these have been effected with Mozambique and Kenya to date.

10.43 The GPW is also in the process of capacitating itself in the area of Research and Development, through recruitment of specialists in this functional area.

This will further assist in product development and innovation.
To date, the GPW has printed security documents for Namibia and Eswatini, particularly, birth certificates and University degrees certificates.

There are also plans to present GPW services to more countries in this year.

48 204 10.44 Tripartate Meeting on delayed Annual Report: Following Minister’s assurance, several meetings have been held between AGSA, OAG and GPW management since November 2022 to date.
To this end, a working committee has been established comprising of officials from the OAG and GPW and its objective is to explore options to assist GPW to address all legacy findings which were affected by the data loss due to systems failure.

The 2021/22 Annual Report was tabled in Parliament in September 2023 and the 2022/23 Annual Report will be tabled as soon as the audit for this financial year is concluded.

The AGSA has undertaken to conclude this audit by the end of November 2023.
10.45 Annual Report Delays after Audit: The audit for the 2021/22 financial year was only finalized when the AGSA submitted the Management Report to GPW management on the 28th July 2023.

This time frame had a knock-on effect on the development of the Annual Report for the 2022/23 financial year, because the audit for the 2022/23 financial year effectively started in August 2023.

The AGSA plans to finalise the audit and submit the Management Report to GPW management by the end of November 2023.
GPW management commits to developing the Annual Report for the 2022/23 financial year as soon as the Management report is received from AGSA, and then submit the Annual Report to Minister to facilitate tabling to Parliament.

10.46 2022/23 Audit: Yes, the Annual Financial Statements were submitted by GPW management to the AGSA by end of May 2023 as per the PFMA requirements.
10.47 Investigations into Irregular Expenditure not done: GPW management appointed a law firm to investigate irregular, wasteful and fruitless expenditure in GPW based on the Management Report received from AGSA.

This Report was also submitted to the Ministerial Review Panel as part of the investigation.

The outcome of this Report, based on the MRP recommendations, has been submitted to the current forensics investigating team.
The investigation is still underway, and the recommendations will be considered by GPW management once received.

The Loss Control Committee has been established in GPW.

The objective of this Committee is to consider all cases presented to it by officials in GPW.

The outcome is referred to Directorate: Internal Audit, which in turn makes determinations in line with the Irregular and Fruitless and Wasteful Expenditure Framework set by National Treasury.
Internal Audit then presents its outcome to the Loss Control Committee, which makes recommendations to the CEO for condonation and/or to take disciplinary action against affected officials.

Implementation will be monitored.


10.48 Service Provider to verify assets, people and data: The target set by Security Management on “Implementation of the reviewed security model for GPW” was not achieved because the process to appoint the service provider was not concluded at the end of quarter 4 in the 2021/22 financial year.
This was as a result of BAC not approving the appointment of service provider for ISO18788 Security Operations Management System, due to failure to meet basic requirements of the probity audit assessment.

10.49 Extensive research has been undertaken to address all concerns raised by probity auditors and the specifications have been approved.
The Bid Evaluation Committee has commenced with the 49 205 evaluation and the BAC will finalise the appointment by the end of the year, in order to facilitate implementation.

11.

CONSIDERATION OF OTHER SOURCES OF INFORMATION 11.1 STATE OF THE NATION ADDRESSES 2023 The 2023 State of Nation address has three broad areas with implications for the Department of Home Affairs, the Electoral Commission and Government Printing Works.

These are: I.
These are: I.

Growing the economy, addressing unemployment and poverty by reducing red tape to scarce skills, tourism and business investment.

II.

Addressing Crime and corruption.

III.

The Impact of Load shedding and Infrastructure.

The first 2 issues are continuations of themes in SONA for several years and the last issue is new but overlaps with issues relating to infrastructure improvement from previous years.

I.
I.

Growing the Economy, Addressing Unemployment and Poverty by Reducing Red Tape to Scarce Skills, Tourism and Business Investment Again this year, the specific mention of the DHA is in relation to Immigration Permitting.

The President mentions that one of the key ingredients for economic growth and competitiveness is the ability to attract skills which the economy needs.
He mentions the completion of a comprehensive review of the work visa system, and moving quickly to implement the related recommendations.

These include establishing a more flexible points-based system to attract skilled immigration, implementing a trusted employer scheme to make the visa process easier for large investors and streamlining application requirements.
Consideration is also needed for the recruiting and visas for scarce skills in the electrical engineering, project management and renewable energy sectors.

The Committee has already planned oversight of this Permitting Review during its forthcoming trip to Pretoria in March 2023.

The President again mentioned red tape reduction and the team in the Presidency that has been working with various departments to make it easier to do business.
He mentions the collaborative approach, working with departments and agencies in areas such as tourism transport and visas and work permits.

An example will be introducing remote worker visas to encourage this new kind of tourism to the country and a special dispensation for high-growth start-ups to recruit highly-skilled and competitive skilled persons.
A critical facilitator of this process will be the improvement of the e-visa platform beyond the initial 14 countries as well as better coordination between the Immigration Branch, the Visa Facilitation Service (VFS) and Border Management Agency.

50 206 The Presidential Employment Stimulus has provided work and livelihood opportunities to more than one million people.

All departments including the DHA must remove the requirement for work experience for young people seeking entry-level positions.
The DHA has also played a role in several job creation initiatives through the appointment of the first cohort of 10,000 unemployed young people to digitise more than 340 million paper-based civic records, which in turn will improve efficiency and reduce corruption in the DHA.

The implementation of these jobs and this project must be monitored as a potential for addressing the longer term shortage of staff and backlogs in the DHA and Government departments in general.
DHA also has a role to play in terms of stability and prosperity, and development in our continent.

As the focus of the African Continental Free Trade Area will be on collaboration on sustainable development, the just energy transition and industrialisation; DHA will need to participate in the promotion of bilateral and multi-lateral visa agreements needed to facilitate free movement of persons related to trade are expanded.
Once fully operationalised, the Continental Free Trade will provide an unprecedented opportunity to deepen African economic integration, grow national economies, and open up new frontiers and markets for South African companies.

This in turn can provide further opportunities for the GPW to expand its market for security printing.

II.
II.

Addressing Crime and corruption The recommendations of the State Capture Commission are being implemented according to the plan submitted to Parliament in October 2022 so that the systemic weaknesses identified by the Commission are addressed.
The Following are reactions to the President’s Response to the report recommendations relating to the DHA and IEC: The National Anti-Corruption Advisory Council, consisting of people from across society, is in place to advise on suitable mechanisms to stem corruption, including an overhaul of the institutional architecture for combatting corruption.
Reinvigorated law enforcement agencies are taking firm action against companies and individuals alleged to have been involved in state capture and specialised police teams that are working on tackling crimes like kidnapping, extortion and illegal mining have had several breakthroughs, arresting dozens of suspects and achieving several convictions.
The DHA will be monitored in terms of how it is advised by the Anti-Corruption Advisory Council and the Relevant Prosecution bodies and how it interacts with other Departments in Addressing Illegal Mining.
In response to the State Capture Commission and in line with the framework for the professionalization of 51 207 the public service, new recruits to the DHA, IEC and GPW will have to undergo integrity assessments which will become a mandatory requirement for recruitment to the public service along with entry exams.

The Presidency and National Treasury will work together to rationalise government departments, entities and programmes over the next three years.
National Treasury estimates that we could achieve a potential saving of R27 billion in the medium term if we deal with overlapping mandates, close ineffective programmes and consolidate entities where appropriate.
It is unlikely, given the recent addition of the BMA separating border functions from the DHA but consideration could be given to whether combining the Police Service and the DHA into one Department, as is the case in several other countries, could improve efficiency in identifying criminals, in particular those in contradiction to the Immigration Act.

III.

The Impact of Load shedding and Infrastructure.


With the implementation of a State of Disaster relating to the Electricity Load Shedding, Section 27(2), read with Section 27(3) of the Disaster Management Act is required to make regulations for the purpose of — (a) assisting and protecting the public; (b) providing relief to the public; (c) protecting property; (d) preventing or combatting disruption; or (e) dealing with the destructive nature and other effects of the disaster.
In terms of the forthcoming regulations, it must be assessed whether the DHA and GPW can at least be partially exempted from load shedding because of the critical services they offer.

The power outages have had a negative impact on service delivery at Home Affairs offices already challenged by network connectivity and outages.
In this regard backup power solutions by offices not assisted by Uninterrupted Power Supply solutions will need to be budget for and may benefit from expedited procurement processes and budget under the disaster regulations.

Such backup power solutions will, however, need to be done with awareness of the climate change impact and consideration of more renewable power solutions such as solar, wind and battery technologies.
The Presidential Climate Commission and Just Energy Transition Investment Plan must be monitored for funding, rebates and infrastructure upgrades for Home Affairs, IEC and GPW offices.

The President indicated that one of the greatest obstacles to infrastructure investment is the lack of technical skills and project management capacity.

In this regard, the requisite international scarce skills and business visa applications will need to be prioritised and expedited.
The continued expansion of infrastructure for ports and railways to rival the best in the world and broadband access for more parts of the country should also be pushed by the DHA as a means of improving 52 208 the presence of the Border Management Authority at ports and network connectivity in rural DHA offices.

Lastly mention was made of the aftermath of the COVID-19 pandemic, outbreaks of public violence in 2021 and flooding in Eastern Cape, KwaZulu-Natal and North-West.
An update will be required on the impact of these disasters on the delivery of services by Home Affairs offices and special provisions for providing replacement documents lost to the flooding.

11.2 RESPONSE TO THE 2022 BRRR The Ministry of Home Affairs sent the following responses on the 2022 BRRR of the Committee to the Speaker of the National Assembly on 31 May 2023.

DHA – 6.1 Issues Outstanding From The 2021 and Previous BRRRs 6.1.1.
Strive towards a clean audit opinion and better adhere to in-year audit plans.

In particular, the impairment of departmental revenue in collecting of penalties, issues of significant contingent liabilities and the reduction of irregular expenditure.

Progress on audit plans and the Auditor General Management Letter must continue to form part of all future quarterly performance reporting to the Committee.
6.1.2 The Minister of Public Works and Infrastructure should ensure that all officials and others who were found to have acted in the illegal procurement process of the Beit held bridge accountable.

6.1.3.

The Committee welcomed the dual connectivity links at several offices and the installation of power generators at 196 offices but urged the DHA to increase this number.
The Department must also report on the partnership with SITA to resolve the network connectivity within the 24 months’ target as specified in the 2019/20 Annual Performance Plan.

fence are The Department remains committed to achieving a clean audit outcome.

The 2021/22 audit action plan was implemented to address the findings relating to the impairment of departmental revenue, the contingent liabilities and irregular expenditure.
With the exception of irregular expenditure, the findings on impairment of departmental revenue and accruals and payables were not repeated in 2022/23.

The 2022/23 audit action plan similarly addressed all the AGSA findings.

In addition, the Internal Audit findings are also monitored.

Progress against the audit action plans is monitored at Back-to-Basic meetings, the departmental management meeting (DMC) and EXCO.
Such progress reports on the audit action plan are included in the departmental quarterly reports to the Portfolio Committee.

The Department of Public Works and Infrastructure has tabled a report with SCOPA on the procurement of the Beit Bridge fence.

Installation of SDN-ready equipment in all 25 SITA switching centers has been completed.

Implementation of the Remote Environmental Monitoring (REM) system at all 25 Switching Centres has been completed.
Implementation of 21 core links in identified problematic switching centers has been completed.

SITA has reported that a bid for the appointment of Layer 2 service provider to implement the redesign of the core architecture is at an advanced stage with the auditors for review.
Migration of services from old legacy equipment to the new SDN-ready equipment has been completed in the following switching centers: 53 209 • Bloemfontein, Polokwane, Potchefstroom, Mmabatho, Beta, Kimberley, Bhisho, Welkom, Upington and Pietermaritzburg • The remaining SITA Switching centres will be migrated during the current financial year (FY2023/24).

6.1.4.
6.1.4.

Assess and report to the Committee, on the report findings on cost and benefits of having security cameras, security services and cash collection for the staff and clients at vulnerable DHA offices.

New offices such as Menlyn Mall are fitted with security cameras and security systems, including a monitoring room.

Bid processes for the installation of alarms and armed response at a national level failed.
The intention is to reduce the night shift deployment and reliance on physical security on site.

The existing budget (2023/24) for physical security is insufficient to cater for the existing deployments and the statutory PSIRA (Private Security Industry Regulatory Authority) increases.

The budget shortfall was presented at the Budget Committee meeting held on 10 May 2023.

The Department has a service provider to provide Cash-In-Transit services.
However, the Department is encouraging offices to go cashless in order to do away with or minimise this service; some offices are already cashless.

A resolution for Saturday work has not been reached with Unions but the Department will expand the services to seven days a week using the kiosks once ready for rollout.

In future once the DHA Bill is passed the operations model will allow 7 days a week operation and shifts system.

6.1.5.
6.1.5.

Revive and expand current provision of services to clients on Saturdays and after 4pm in negotiation with National Treasury for funding and trade unions for staff interests prior to the end of the 2019/20 financial year.

Consideration, in this regard should be given to the lost productive time for learners, businesses and employees as well as the essential nature of the services.

DHA – 6.2 RECOMMENDATIONS 2022 6.2.1.


The Department of Home Affairs should ensure that the registration of births is improved to be within the confines of the legislation and to not delay the issuance of the Unabridged Birth Certificates within 8 weeks.

In respect of the current financial year, the Department planned to register a cumulative number of 750 000 births within the confines of the legislation, i.e within 30 days of birth.
For the 2022/2023 financial a total number of 981 832 births were registered of which 778 612 births were registered within 30 days and 203 220 were registered above 30 days.

This shows that more than 79,3% of births were registered within 30 days.

To ensure further improvement towards 100% registration of birth within the legislated period of 30 days, the Department is in the process of connecting additional health facilities for birth to be registered at the point of occurrence.
All children born from March 2013, are issued with birth certificates with full particulars of both child and parents (unabridged birth certificate) on the spot.

However, for persons born before the aforementioned period, the department has embarked on a project to digitize records which will result in improved turnaround time for the issuance of unabridged birth certificates.
The Department is expanding its mobile units fleet to increase footprint for the provision of Smart Cards with the addition of 100 units in 2023/24.

The self-service kiosks will also be another channel that will be rolled out to 54 6.2.2.

The DHA should report on the roll out of modernising their remaining 214 offices to ensure that 210 citizens can apply for the Smart Cards and the Committee will oversee this in person.
There should be a stage where the issuance of the green ID Book should be stopped, including for naturalised citizens, because it was vulnerable to fraudulent activities.

6.2.3.

The Department of Home Affairs should roll out the Branch Appointment Booking System to all offices and expand this to include collection of documents.

6.2.4.

The applications for passports and Identity documents (IDs) through the banks should also be rolled out further to alleviate the long queues at DHA offices.
6.2.5 More budget should be allocated to expand mobile units with reliable network connectivity to be dedicated to schools and the elderly.

An annual or bi-annual schedule of mobile unit visits to schools should be drawn up in advance and children at the schools who are unable to apply for birth certificates or IDs on the day of the mobile unit visit should be referred by DHA to their nearest Home Affairs office.
The Home Affairs office must work with the Department of Basic Education and the Department of Social Development to proactively assist these children with social support and/or assist indigent fathers with free DNA testing should this be preventing the child from registering their birth.

6.2.6.

The DHA should ensure that it reduces irregular expenditure and complies with the related legislation when executing its mandate.
increase the footprint and allow the Department to stop the issuance of Green ID books.

The Branch Appointment Booking System has been rolled out to 199 offices and its expansion to include collections will be completed in the second quarter of the 2023/24 financial year.

There are engagements underway with BASA (Banking Association of South Africa) on an ongoing basis regarding the expansion of services to more banks.
Upon determination and conclusion of the rollout strategy, the Minister will make an announcement in this regard.

As part of increased access to services and multi-channel strategy mobile offices are to be deployed to geographical areas with the population threshold of 40 000 and below.

The department in consultation with SITA is looking at dual mode of connectivity and also satellite in areas where connectivity is poor.

The Department had a total number 110 mobile units across the country.
However, two mobile units (WC and FS) are no longer roadworthy and one (EC) was involved in an accident which leave a total of 107.

Additional twenty (20) mobile units were procured in 2022/23 financial year and more than 100 will be procured in 2023/24 which will bring the total to 227.

The use of mobile units is to close the gap in areas where there is no DHA footprint.
Mobile offices collected 96 456 Smart ID card re-issues and 107 861 Smart ID first applications during the review period 2022/23 totalling 204 317 applications.

This has assisted clients with enabling documents and learners at respective schools across the country.

The Department is working closely with Department of Basic Education where lists of all high schools and learners with no IDs were provided and mobile schedules are in place to visit those schools.
The matric learners are then prioritised on the various visits and a schedule to visit schools is in place and shared with school principals and other stakeholders.

Clients without the required documentation for IDs are referred to offices for assistance.

There is engagement with Department of Health pertaining to free DNA testing at health facilities for indigent people.

The Department is taking all possible efforts to detect and prevent irregular expenditure from arising.
In this regard, it must be noted that the amounts disclosed as current year irregular expenditure in the Annual Financial Statements are the following: 55 211 Year 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23* unaudited R’000 34 918 27 045 272 351 4 071 46 099 32 707 in irregular expenditure The the 2019/20 financial year is as a result of the ABIS contract; the irregular expenditure in the 2021/22 financial year is as a result of the IT Firewall contract.
The Department has requested National Treasury to condone the ABIS and an old security contract.

Consequence management is applied where officials are found to have caused the irregular 6.2.7.

Ensure that the DHA continues to develop their audit action plans to address the negative findings identified by the Auditor- General.

6.2.8.

The DHA must improve the eHomeAffairs system and contact centre response times.
In addition, the DHA should improve on its coordination of responding to queries raised by the public and the Committee more timeously.

At the root of these challenges is the DHA ensuring that it meets its service delivery targets on issuing of documents in time.

6.2.9.

The Department of Home Affairs should ensure that the hiring of the 10 000 youth to work on the scanning project is completed without unnecessary delay and report to the Committee, within 3 months, progress on this project.
6.2.10 The DHA should provide an update on how it is addressing its on-going IT challenges, system down-time, long queues and lengthy waiting times at its offices.

expenditure.

The Department annually develops an audit action plan to address all Auditor-General findings.

These actions are monitored internally at the Back- to-Basics meetings, EXCO, and the Risk Management and Audit Committee meetings.
Internal audit verifies whether the management actions are indeed addressing the root causes of the findings.

Internal Audit also provides assurances that management actions are indeed complete against verifiable evidence.

Internal Audit findings are treated no different from AGSA findings.

This was done to elevate Internal Audit findings and track progress against the audit action plan for Internal Audit findings.
Consequence management is applied where managers fail to respond to audit findings, fail to meet due dates or fail to provide updates for their management actions.

To ensure that the Contact Centre response times are significantly improved, the Department is in the process of upgrading the existing Contact Centre systems to align them with industry requirements for efficiency gains, this including but not limited to additional access channels with self-service functionalities.
Also, a number of Supervisor positions will be filled to monitor performance and adherence to schedule by the Contact Centre staff.

Another area that the Department is focusing is on the empowerment of Contact Centre staff to issue certain categories of enabling documents that have exceeded the Department’s turnaround times.
This will assist with the reduction in the number of escalations done to core business units that are that may have backlogs and under capacitated to finalize all applications within the agreed to service standards.

The project to recruit the 10 000 unemployed graduates was to be undertaken in three phases, with the first cohort recruited during August 2022 and 1259 graduates were appointed in February 2023.
The second phase to recruit 4000 started in March 2023, interviews are currently being conducted and the envisaged appointment of this cohort is around July 2023.

The advert for the last phase will be placed in the second week of May 2023.

DHA has engaged CSIR as of November 2022 to perform comprehensive and hands-on diagnostic assessment to technically understand the issues affecting ICT service delivery, including root causes.
• Network: o Assess the entire DHA network to understand its architecture, redundancy, users, devices, servers, performance, service level agreements, and other related ICT issues.

• Applications and Infrastructure: 56 212 6.2.11.

The Minister should ensure that the findings of the Ministerial Task Team on the validity of permits, are developed into a remedial action plan.

6.2.12.
6.2.12.

The Department must table an action plan on revision of the Immigration Policy regime to address the country's immediate immigration challenges, including the prevalence of fake IDs, passports and undocumented migrants, while ensuring that the BMA continues to be made fully operational without further delay.

6.2.13.

The DHA should update or develop new policies that will ensure it collects fines from transport operators that breach immigration laws.
6.2.14 The DHA should ensure that it intensifies its fight against fraud and corruption within the department and that officials are referred for sanction and prosecution.

o Assess entire “as-is” enterprise architecture linked to ICT service disruptions and performance.

o Confirm specifics of system instabilities.

o Evaluate the existing infrastructure (hardware and software) that may be impacting on ICT service delivery.
• Security: Conduct technical security and risk assessment to determine any impact or causality on ICT service disruption.

The ultimate objective being to Support DHA to stabilise and improve its ICT ecosystem (network connectivity, hardware, and software).

The Minister has appointed a Multi-Disciplinary Task team who have commenced with this remedial process.

The BMA has been formally established as an autonomous Schedule 3A Public Entity.
The establishment date was 1 April 2023 and the Authority is operational.

However, additional funding is required to, inter alia, further capacitate the BMA for purposes of increasing its footprint and investing in technology for purposes of deterring illegal activities in the border environment.

The Department has prepared a draft Policy on the collection of fines from conveyors.

This draft is going through the approval process.


DHA has developed a Fraud and Corruption Prevention Strategy and Plan, which is an integral part of fraud management, to ensure that corrupt activities by officials are prevented, detected and investigated.

Where employees are found to have infringed on prevailing policy and internal controls, disciplinary action is taken.
Where criminal elements are involved, cases are reported to the law enforcement agencies for criminal prosecutions of officials, citizens and foreign nationals.

For the 2022/23 financial year, 134 officials were reported to Employee Engagement for committing various acts of misconduct.

20 Officials were arrested and 5 officials were reported to the SAPS to institute criminal charges.
To strengthen the capacity of the Branch Counter Corruption and Security Services, an additional 12 officials were appointed to investigate and analyse corruption trends in the Department.

• 10 Investigators • 2 Analysts GOVERNMENT PRINTING WORKS – 6.1 ISSUES OUTSTANDING FROM THE 2021 AND PREVIOUS BUDGET REVIEW AND RECOMMENDATION REPORTS 6.1.6.
The strategic intent of GPW is to print State security documents for customers within the Republic of South Africa and those in other SADC 57 213 The GPW should report on the implications of introducing legislative provisions for ring- fencing of certain government printing work prior to the tabling of such legislation at Parliament.

and African countries.


The Security Printing Bill, once enacted, would enable government departments to print their State security documents with GPW without being subjected to a competitive bidding process.

The AGSA would not continue to issue findings against departments that do business directly with GPW, thereby minimising negative audit findings and opinion against such departments.
As a government printer, GPW would be able to achieve the objective of securing the sovereignty of the country by ensuring that all critical State documents such as, amongst others, Identity and travel documents, legislation, letterheads for all political principals, matric certificates and certificates are printed solely by GPW.

As a self-revenue generating entity, GPW will be able to sustain its operations through the sale of security products to all its customers.
It will be enabled to replenish its revenue base, and continue to fund all its capital projects and pay salaries and service providers/suppliers.

This financial benefit will sustain the entity to avoid approaching National Treasury for a bailout.

GPW’s financial liquidity will be strengthened, and it will be able to surrender its surplus to National Treasury and contribute to the National Revenue Fund, thereby supporting government in meeting its financial obligations.
GPW will better promote the development of SMME’s in the printing and manufacturing sector, by procuring services of those involved in security printing, facilitate their accreditation, and outsource some of the para-security work to the benefit of their companies.

The legislative provisions for ring-fencing of State security documents will only be introduced when the Security Printing Bill is assented to and signed by the State President.
Consultation on the Security Printing Bill could not be concluded due to legal advice DHA received from the State Law Advisor’s office that consultations on the Bill had to be extended to the provincial departments and that it should also be tabled at the NCOP.

This prolonged the consultation programme beyond what was anticipated, hence the Bill could not be tabled by the end on the 2019/20 financial year.

The consultative process with provincial departments is currently underway.
To date the GPW and the DHA’s legal team had been following the draft legislative process, towards finalisation of the Bill.

Both national and provincial departments have been consulted on the content of the Security Printing Bill, as per the recommendation of the State Law Advisor.

Consultation with the remaining two provinces is being finalised.
Internally, the CEO wrote and issued letters of contemplation to discipline to a total five (5) officials who were responsible for safeguarding of CV’s at the time of the loss.

Four (4) officials were issued with written warning letters.

One Assistant Director: HR Recruitment has since resigned.

58 6.1.7 Ensure that the State Security Printers Bill is submitted to Parliament by the end of the 2019/20 financial year.
6.1.8 The Committee notes that a police investigation is underway regarding the missing Curriculum Vitae’s (CV’s) of advertised posts which were supposed to have been filled.

However, the Minister of 214 Home Affairs should hold the Acting CEO accountable for the missing CV’s.

The Committee expect a report from the Acting CEO on the actions taken against those responsible for safeguarding the CV’s.
On the 23 May 2022, the CEO: GPW wrote a letter to the National Commissioner of SAPS and Head of Priority Crime Investigations (HAWKS), and requested feedback on all GPW cases which were being investigated by their office.

A response letter was sent back to GPW on the 01 July 2022, indicating that this investigation was completed and referred to the Specialised Commercial Crimes Unit (SCCU).

No decision has been made as yet.


6.1.9 The GPW should attempt to table their 2021/22 Annual report before May 22 and report on those being held responsible for the loss of financial data without the relevant backups being in place.

The 2021/22 annual financial statements were submitted on the 29 December 2022 to the Auditor General of South Africa (AGSA).

AGSA has indicated that the audit report will be signed off on 24 April 2023.
The Annual Report will be developed and tabled as soon as the audit is finalised and audit report issued to GPW.

IT the environment, 6.1.10 Regarding human resources in the committee urged GPW to develop a strategy to augment skills and capacity, to ensure sustainability in the long run.

An investigation conducted by the Ministerial Review Panel (MRP) was concluded and the report presented to the Portfolio Committee in July 2022.

The Reports were handed over to EXCO by Minister in September 2022.
An action plan is in place and the recommendations are being implemented by GPW management.

In addition, the CEO issued nine (09) letters to the entire ICT management team, including the Director who got a written warning, as consequence management.

A forensic investigation has been concluded in the ICT environment and recommendations are being implemented.

One official is on suspension and a disciplinary process is underway.
The forensic investigating team into all matters raised by the MRP Report is underway and the Report will be submitted as soon as it is concluded.

All vacant positions in ICT have been advertised and HR is in the process of facilitating filling of these posts.

Additional manpower for support has also been sourced from DHA.

Professional services for virtual infrastructure has been sourced and has started in March 2023.
GPW is in the process of procuring professional services for the project management office for implementation of all ICT projects, in order to support the ICT unit, due to the high turnover being experienced.

This will be concluded in July 2023.

Critical skills are also being sourced through the SITA’s transversal tender.

More positions have been added to the approved organisational structure as per the MRP report, and posts are already approved by Minister of Home Affairs.
GPW is awaiting concurrence by the Minister of the Public Service and Administration, then they will also be filled.

Two service providers have been procured to support ICT with applications management as well as re-automation of the eGazette and tender systems.

GOVERNMENT PRINTING WORKS – RECOMMENDATIONS 2022 59 215 6.2.15.
GPW should work closely with National Treasury, the DHA, SITA and the Auditor-General to ensure that the Annual Report and Financial Statements for the 2021- 22 financial are submitted to the Auditor General and Parliament as soon as possible and ensure that the 2022-23 financials are submitted on time.

6.2.16.
6.2.16.

The Minister of Home Affairs should ensure that all the recommendations of the Ministerial Review Panel Report on the Data loss at GPW are implemented, particularly the consequence management, upgrade and maintenance of IT infrastructure and multiple redundancy backups.

The 2021/22 annual financial statements were submitted on 29 December 2022 to the Auditor General of South Africa (AGSA).

AGSA has indicated that the audit report will be signed off on 24 April 2023.
GPW has been implementing the 2022/23 AFS preparation plan to ensure that the 2022/23 AFS are submitted by 31 May 2023 to AGSA.

In terms of implementation of all the MRP Recommendations: • ICT has achieved 39% implementation of the recommendations to date.

• The ICT MRP recommendations will be implemented by March 2024.
Consequence management As indicated in 6.1.9 above, the CEO issued nine (09) letters to the entire ICT management team, including the Director who got a written warning, as consequence management.

A forensic investigation has been concluded in the ICT environment and recommendations are being implemented.
One official is on suspension and a disciplinary process is underway Upgrade, maintenance of IT infrastructure and backup • Multiple layers of back up are being implemented to enhance business continuity.

Backup and restore tests are being performed monthly.

• The ICT Technology Infrastructure refresh is planned for achievement by December 2023.

• The migration of ICT Systems to the new Technology infrastructure will be achieved by March 2024.
GPW is in the process of procuring the new ERP system to enable this migration.

• Professional Services for Security Services are sourced, and the contract started in April 2023.

The service will provide Security Architecture and Identity Management Services.

• Restoration of the e-Gazette system is underway, and the Go-Live process is targeted for conclusion in May 2023 6.2.17.
The Minister of Home Affairs and GPW should aggressively market GPW products to the African market and other parts of the world.

The GPW has engaged various countries in SADC and East Africa since 2021, such as Angola; Botswana; Lesotho; Eswatini, Namibia, Kenya and Ethiopia.

These engagements have resulted in the signing of service level agreements (SLA’s) and subsequent orders for the printing of Higher Vocational, University and Birth certificates for Eswatini and Namibia.

6.2.18.
6.2.18.

The Minister of Home Affairs and the GPW should complete reviewing all the evergreen contracts as a matter of urgency.

Furthermore, the GPW has signed a Memorandum of Agreement with the Kenyan Government Press, and plans are well underway to start printing orders.

Ethiopia has also been engaged in 2023, and there are prospects to sign an SLA with the Ethiopian State Security Printer.
The process of assessing all contracts classified as long-term/ evergreen, sole supplier and single source contracts, has been concluded by GPW.

A process of reviewing all SLA’s in GPW is underway to ensure that all contracts have definite periods.

60% review of contracts has been concluded.


60 216 6.2.19 The Committee will refer the GPW audit outcomes and loss of data to the Standing Committee on Public Accounts (SCOPA) for further oversight of its governance and the implementation of recommendations by AG, Treasury and GPW.

GPW management is in the process of implementing the MRP recommendations, and has achieved 25% to date.

The implementation of the Plan is planned for completion by March 2024.
A total of 82% audit findings by AGSA and Internal audit have been resolved by GPW management.

The remaining 18% are mainly in the Finance branch, and have a dependency on being granted an exemption by National Treasury on prior period findings due to data loss.

GPW and Minister of Home Affairs wrote to National Treasury requesting an exemption and the response is still awaited from National Treasury since 2022.
ELECTORAL COMMISSION – 6.1 ISSUES OUTSTANDING FROM THE 2021 AND PREVIOUS BUDGET REVIEW AND RECOMMENDATION REPORTS 6.1.11.

Provide detailed motivation and budgets for the procurement of permanent headquarters rather than continued payment of considerable rent prior to the end of the current lease agreement and in view of medium to long term financing.
6.1.12 The IEC in collaboration with key stakeholders will need to further improve to ensure that they meet their annual targets to register the 10 million unregistered eligible South African’s to participate in elections during the upcoming National and Provincial Elections scheduled for 2024 The budget for the procurement of a permanent national office accommodation is subject to the approval of the 2022/2023 roll-over.

Discussions in this regard have been had with National Treasury.
A formal retention of surplus application will be made upon the approval of the Annual Financial Statements.

On the other hand, the bid specification for a permanent office building are in the process of being finalised so that the procurement process can commence.

The Commission has already announced that it is planning two national registration weekends.

The first of these will be conducted on 18-19 November 2023.
Citizens will have the use of approximately 24 000 registration stations across the country.

A communication campaign will underpin the preparations for these general registration weekends.

An online registration campaign was also launched in March 2023.

This allows for citizens to register to vote online.

ELECTORAL COMMISSION – 2022 RECOMMENDATIONS 6.2.20.

The IEC must expand and report on the impact of its outreach and education to mobilize more young people to vote.
Political parties should be engaged to be more directly involved in such outreach • Civic and Democracy Education (CDE) for Institutions of Higher Learning was launched at the Rhodes University on 7 March 2023.

All institutions of higher learning will be rolling out CDE in terms of the programme.

• The Schools Democracy Week which focuses on CDE in the formal schooling system was also launched in North-West on 13 April 2023.
• The Electoral Commission is also planning 80 000 community workshops in the current financial year.

• A multi-media CDE campaign which will cover radio and television will be rolled out in the lead up to the 2024 National and Provincial Elections (NPE).

• Furthermore, social and digital media based CDE will underpin mobilization campaign for 2024 NPE.

• The Party Liaison Committees at the national, provincial and municipal level are engaged on the CDE delivery programmes.
61 217 6.2.21 The IEC must report back within 6 months on addressing the remaining R66 million in uncondoned irregular expenditure.

6.2.22.

The IEC must address the technical and training issues with the new Voter Management Devices well before the 2024 National and Provincial Election.

Training, particularly of temporary staff, should ensure that there is better uniformity of implementation of legislation and regulations at voting stations without political bias.
Of the R66 million of accumulated irregular expenditure, R 44 million has been submitted to National Treasury for condonation.

Responses are currently awaited.

• The operating system of the VMD’s (Voter Management Devices) is currently being updated.

This will optimize the functionality and improve the security of VMD’s.

• The new registration application on the VMD’s will allow them to function in an offline mode without impact on functionality.
• A mobile device management application is being on-boarded on the VMD’s.

• Two dedicated dry-runs have been planned to test the functionality of the VMD’s ahead of the registration and NPE 2024.

• Supporting hardware has been reviewed and remedial action is being undertaken.

6.2.23.

The IEC must address the issue of some voters being removed from the voters' roll without being informed.
Section 11 of the Electoral Act imposes an obligation on the Chief Electoral Officer to change the registration details of a voter if such details are incorrect or have changed.

The address of a voter must be linked to the ward in which the voter is registered.

6.2.24.

The continued IEC clean audit is commendable and focus should now be directed to improve performance against targets, which have remained at around 75% over the last few years.

6.2.25.
6.2.25.

The IEC should continue to collaborate with Government Printing Works to print as much of the ballots as possible in the upcoming National Elections.

6.2.26.
6.2.26.

The IEC must rectify that some special votes that were registered, were not visited by IEC officials to complete their votes Processes are being implemented to serve notices of intention to change registration details of voters and provide the affected voter an opportunity to make representations before changing the registration details of the affected voters.

The Commission is committed to improving overall institutional effectiveness including meeting all agreed targets.
However, there are external factors which negatively affect the achievement of some targets.

Some of these factors are as follows: o Load shedding affects network connectivity and system availability.

o Research suggests that registration of voters is also influenced by developments in the political system.

Potential voters are opting out of registration as voters and voting.
o The challenge to the Preferential Procurement regime resulted in disruptions to the supply chain process which has led to low spending levels.

The Commission takes the view that negative perceptions about the independent management of elections may abound if ballots are printed with Government Printing Works (GPW).

This is so because GPW is a government entity under the direction of a member of the national executive.
The Electoral Commission will endeavour to visit all approved applicants for home visits during special voting days.

However, there are instances where political parties apply on behalf of voters who have not requested a special vote.

This leads to a less optimal use of special votes and instances wherein voters with real need are not serviced.

Furthermore, this leads to wastage of scarce public resources.
11.3 RESPONSES ON THE 2023/24 BUDGET AND PLAN REPORT OF THE COMMITTEE The Minister of Home Affairs provided the following response to the Committee’s Budget Vote 5 Budget and Plan report on 16 October, a day before the first draft of the BRRR was considered.

62 218 Committee Recommendations Response DEPARTMENT OF HOME AFFAIRS – 11.2.
Whilst the additional allocation of funds increasing the DHA capacity is appreciated, the DHA budget should continue to increase capacity even beyond the 55% currently allowed for given the delays in services to the public.

Planning should start to possibly retain some of the youth the digitisation employed in project after their 2 year contracts.

The 11.3.
The 11.3.

Department implements decentralisation and downward delegation of Visa and Permit applications with other ad hoc and automated system checks and balances put in place to address the backlog.

11.4.

There should be ambitious time bound targets set in the annual plans and related budgets for so-called non-critical permits such as spousal permits which have a knock on effect on the reputation of the country to attract and investments.

Department 11.5.
Department 11.5.

The enhances Branch the Appointment Booking System to ensure that it accommodates the collections of documents and that walk-ins should be allowed in all offices.

Department 11.6. capacitates the Call Centre to ensure the public are assisted timeously.
that members of scarce skills The In response to the 1st capacitation business case submitted to National Treasury in the 2021/22 financial year, the Department received R837 million over the 2022 MTEF (R267 million in 2022/23; R279 million in 2023/24; and R291 million in 2024/25).

This allocation enabled the Department to fund and fill 742 additional posts, with priority given to Civic Services, and resulted in the Department reaching 39% capacity in respect of an approved establishment of 18 765 posts.
The Department has submitted the 2nd capacitation business case to National Treasury on 30 June 2023.

Should the 2nd business case be funded, it will enable the Department to reach 60% capacity.

In the 2nd business case, National Treasury was requested to increase the total establishment with an additional 3 668 posts at a cost of R1.4b.

The National Treasury requested the Department to reprioritise the capacitation requirements over a 3-year period with options.
Such a reprioritization was provided and the first option will focus on IMS (Inspectorate, permitting), Provinces (hospital clerks, mobile units, front office managers), internal audit, risk management, counter corruption & security services, and labour relations.

The Department is waiting for formal feedback from National Treasury on the 2nd capacitation business case.
The department has submitted renewed delegations for all visas and after further deliberation with the Director-General on the 8th September 2023 it was agreed that the delegations need further refinement that will allow for quicker clearance of the backlog.

This should be submitted for approval by 15 September 2023.

The Department will consider this recommendation during its planning for the next financial year 2024/25.

The Branch Appointment Booking System has been activated in 202 modernised offices.
Walk-ins are still allowed in all 202 Modernised offices, and the system has been enhanced to allow for the collection of documents from 15 September 2023 onwards.

The Department is in the process of procuring requisite systems and technologies equipped with multiple access channels including interactive self- service functionalities and robotics for easy handling and management of queries channelled to the Contact Centre.
The systems will also assist with easy management of current staff performance to ensure reduced call handling time and call abandonment rates.

The Branch: Information Services is in the process of verifying security features of the proposed system and technology prior to finalizing the procurement process and implementing the system.
63 219 Committee Recommendations Response In addition to systems and technologies, the Department finalized the recruitment of two Team Leaders to strengthen the management of contact centre consultants.

11.7.

The DHA should ensure queries sent to the Department by Committee members on behalf should be of responded to.

the public, All queries sent to the DHA are responded to by the Accounting Officer.
The Accounting Officer has implemented mechanisms to prioritise all queries received from the PC members.

There has been a nodal point appointed to collate, consolidate and report to PC members through the appropriate protocol.

The Civic Services and Immigration Services branches currently also have nodal points that are ensuring that queries are being responded to with dedicated emails and links to the Call Center.

11.8.
11.8.

The DHA should deal with long queues at its offices and be mobile procured and deployed in rural areas.

offices should The 11.9.

Department modernises its offices in rural areas to ensure the phasing out of the Green Identity Documents.

The Department received a total of 750 queries from Committees members for the period 1 April 2023 to date.

Of the queries received, 534 have been finalised and 216 are pending and still being processed by the Department.
This is for the period 1 April 2023 to 15 September 2023.

The outstanding matters are not abandoned, but still receiving attention given the complexity of the matters, some of which have legal references.

The Department through its Hybrid Access Model have identified geographical areas that will be served by traditional offices and the areas that will be served by Mobile Units.
In this regard, the department compiled the Footprint Development strategy which outlines how the plans will be executed over a short, medium and long-term in order to deal with lack of footprint in various geographical areas, in particular, rural areas.
The Hybrid Access Model identified 778 mobile visiting points across the country in geographical areas with the population of 40 000 and less which should be served by approximately 334 Mobile Units and there are 127 Mobile Units currently and the department requires 207 Mobile units to cover all 778 mobile visiting points.

The department is in the process of procuring 100 Mobile units during 2023/24 financial year and additional mobile units will be procured during the 2024/25 financial year.
Furthermore, the business case the department compiled on capacitation which was submitted to National Treasury this financial year, took into consideration the capacitation requirements for mobile units.

The department is also acquiring virtual interactive self-service machines (KIOSK) to enable clients to interact directly with the machines and this will assist in addressing capacity challenges within the department.
The Department acknowledges that long queues are as a result of communities in geographical areas where there are no modernised offices for the processing and issuance of Smart ID Cards and thus flock to these offices to access these services and providing channels for Smart ID Cards and passports.

Non- modernised offices which are mostly in rural areas will ensure equitable provision of services and contribute to the reduction of queues in modernised offices.
The department is currently planning to provide Virtual Interactive Self- service machines (KIOKS) in these offices as the alternative channel for the application of Smart ID Cards and passports.

All 123 non-modernised offices will be provided with 2 KIOSKs each for the processing of Smart ID Cards and Passports as well as the reprints for Birth, Marriage and Death certificates.
These offices will be capacitated with collection counters to allow for collection of Smart ID Cards and Passports from the office of application through the KIOSK.

64 220 Committee Recommendations Response in the space constraints Furthermore, the department has also developed a criterion for modernisation of non-modernised offices given these offices.
Modernisation of offices requires a minimum space that can accommodate end to end Live Capture process and the number of counters also determines productivity, that is, the number of clients that can be served within a day in the office with minimum space requirements.
The department has approximately 123 non-modernised offices across the country and has planned to rollout live capture system in ten (10) of these offices, namely, Temba, Stuttenheim, Molopo, Citrusdal, Orange Farm, Nkomazi Middleburg, Taung and Mapulaneng during this financial year.

for 11.10.

The Committee requested that the DHA should focus on applications Identity Documents towards the 2024 National Provincial and Elections and there should be cooperation with the IEC.

11.11.
11.11.

The DHA should ensure that its offices installed cameras for security purposes.

11.12.

The Department works faster on resolving the Late Registration of Births to ensure that all South Africans have the necessary documents while at the same time, encouraging citizens to register births within 30 days.

The Department has adopted a new small booth that mitigates the issue of space in small offices to rollout Live Capture.
We have also submitted a capacity business case to appoint more staff especially in small offices in order to cater for segregation of duties on roles given to operate Live Capture.

The project is still in progress, with 8 offices to be rolled-out during 2023/24 financial year as they meet the requirements.

The modernising of the rural offices will also be completed with the rollout of the KIOSKs in support of the strategy to eradicate the issuance of the Green Identity documents.
The DHA developed and approved a plan in partnership with IEC in order to prepare for both Voter Registrations (18-19 November 2023 & 3-4 February 2024) and Elections 2024.

There are regular meetings with relevant stakeholders to ensure that clients apply and collect their ID documents including data exchange, community outreach, advocacy and communications plan for Voter Registration and Elections 2024.

Security cameras and alarms are installed in all new DHA offices such as Menlyn Mall.
This will only be done in other offices when budget is available.

DHA established committees at various levels to ensure cases are adjudicated within specified turnaround times and outcomes are communicated to clients.

This process includes thorough investigation to ensure due diligence in protecting the integrity of the National Population Register.
As far as encouraging citizens to register births within 30 days is concerned, the DHA has developed an Early Birth Registration Strategy to proactively ensure Late Registration of Birth is reduced.

The strategy focusses on advocacy and partnering with stakeholders (DoH, DoE, COGTA) to create awareness and educate citizens/communities about the importance of early birth registration.
Furthermore, the department has embarked on a large-scale project to rollout online birth registration system in health facilities with maternity wards for the registration of birth and issuance of birth certificates on the spot.
To date, the department has capacitated 161 health facilities with the online birth registration system which are responsible for the delivery of approximately 68.35% births delivered across the country in public health facilities and thus these births will be captured as they occur.

The department plans to equip 91 health facilities this financial year which will result in a total of 251 health facilities responsible for 84% of the births delivered.
In addition, the department plans to have additional 95 health facilities equipped with online birth registration system in 2024/25 financial year which will see the coverage for birth rising to 91%.

There are also 1099 health facilities including clinics, community health centres that accounts 65 221 Committee Recommendations Response The 11.13.

The Deputy Minister should engage with VFS on the issues raised by the Committee and report back.
The Committee would then conduct an oversight visit to VFS office/s.

Department 11.14. completes as soon as possible the Public Private Partnership tender for the appointment of a new Visa Service provider, with the inclusion of inclusion of requirements to filter out incomplete applications which are now clogging the application process.
Facilitation for low birth and the department planning to provide an alternative and financial viable solution which will ensure that all children born in these clinics are also registered and are issued with a birth certificate before they are discharged.

The Deputy Minister of Home Affairs has invited the Committee to conduct oversight at VFS offices.

The department is awaiting an indicative date from the Portfolio Committee.
The Department awarded the visa facilitation services bid to VFS Global in December 2013.

The VFS contract was extended in December 2018 for 2 years, ending 31 December 2020.

The extension allowed for the development of the Biometric Movement Control System (BMCS) at ports of entry and the e-Visa system.

The contract was extended in December 2020 with another 24 months; and in December 2022 for another 24 months, ending 31 December 2024.
During the consultations with National Treasury in October 2018, it was recommended that the Department should first issue a Request for Information (RfI) to test the market for the appropriate procurement method.

The RfI was issued in December 2019 and seven responses were received by the closing date.

None of the shortlisted service providers met the technical requirements and the RfI process failed.
The Department also registered the visa facilitation services as a public private partnership (PPP) with National Treasury.

National Treasury approved the registration as a PPP on 16 January 2020.

The bid for the appointment of a transaction adviser was issued on 4 February 2022.

Prior to the signing of the SLA with the successful bidder, it transpired that the owner / director of the service provider was found guilty of fraud and corruption.
As a result, the award for the bid of transaction adviser was cancelled.

Another bid for the appointment of a project manager was issued the same time.

The evaluation process was concluded and a service provider was appointed on 24 May 2022.

The bid for the appointment of a project manager failed and was cancelled in July 2022.

A new bid for the appointment of a transaction adviser was issued following engagements with the BAC on 7 September 2022.
The bid for the appointment of a transaction adviser failed as no bids were received on the closing date of 27 January 2023.

As a result, a new bid was issued in February 2023.

This bid was successful and CTS Consortium was appointed as transaction advisor on 12 May 2023.

Immigration Services has been to the Bid Adjudication Committee to obtain permission to go to open market on this issue.

BORDER MANAGEMENT AUTHORITY 11.15.


The BMA should work closely with the National Treasury to get more funding for the full operationalisation of the BMA, expansion of its patrolling of the borderline and roll out to guarding coastal borders.
The BMA has made request for funding through the Criminal Assets Recovery Account (CARA) in order to procure specialized equipment, in this regard, the BMA has been allocated R150 Million and will be proceeding with procurement of prioritized equipment through ARSMCOR.

In addition, the BMA has recruited 400 Law Enforcement Border Guards who are currently undergoing training with the intention of deploying them along our borderline for patrolling purposes.
Furthermore, the BMA is in a process of 66 222 Committee Recommendations Response 11.16.

BMA should continually endeavour to make good on the promise that its establishment would improve the efficiency of border management beyond the from other capacity departments fiscal constraints.

despite seeded appointing 50 Maritime Coastal Boarder Guards who will be deployed at some of our vulnerable segments in our harbours.
The BMA will be officially launched by the President on the 5th October 2023 wherein the President will commission the Commissioner of the BMA and thus formally making the BMA the 3rd law enforcement authority in South Africa.

The BMA is in a capacitating journey where key positions are being filled to enable the BMA to discharge its mandate effectively and efficiently.
The BMA continues to make infrastructural developments in some of the key land borders, in this regard, the process to redevelop and redesign the 6 key land borders into One-Stop-Border-Posts has commenced wherein the Request for Proposals with regard to Public-Private Partnership (PPP) was published in this regard.

ELECTORAL COMMISSION – 11.19.


Funding provisions will need to be made for the inclusion of independent candidates in the and forthcoming National Provincial and elections forthcoming Party Funding Act amendments.

11.20.

The IEC aspires towards its initial targets set in 2019 for the registration of 29 million voters and 74% participation in elections.

& 11.21.
& 11.21.

The IEC will require additional the funding adjusted budget to allow for extensive voter education and mobilisation given the changes to the Electoral laws around independent candidates.

in National Treasury has approved the retention of surplus to the value of R 1.5 billion.

This will enable the Electoral Commission to have two registration weekends as well as additional costs for the third ballot paper introduced by the revised electoral system.
Furthermore, the cost of increased sizes of ballot papers will be covered by this retained surplus.

The fiscal allocation to the Represented Political Parties Fund (RPPF) is a matter outside the purview of the Commission.

National Treasury determines the annual allocation to the RPPF.

The amendments to the Political Parties’ Funding Act to include independent representatives within the scope of the Act are to be tabled in the National Assembly by the Minister of Home Affairs.
Two national registration weekends have been planned to offer opportunities for eligible citizens to register and eventually participate in the elections.

Furthermore, there is an online registration facility which eligible citizens can use on a 24-hour basis to register as voters.

The registration events will be supported by a communication campaign which will be launched on 26 October 2023 so that everyone in the country is aware of the registration opportunities available.
This campaign will be manifested on all communication media including social media.

Radio and television will be a key component of the delivery of the communication strategy.

For engagement with the citizenry of the country, Civic and Democracy Education have been activated.

This project is supported by Municipal Outreach Co-ordinators (MOC’s) and Democracy Education Facilities (DEF’s) who are tasked with engaging with communities on civic, democracy and voter education.
Currently, 276 MOC’s and 1241 DEF’s who have been contracted.

This on-ground human capacity will be supplemented with civic and democracy education on other media channels.

GOVERNMENT PRINTING WORKS – 11.23.

There should be a timeline provided by the GPW for the implementation of the remaining Ministerial Review Panel Report recommendations.

On 29 August 2023 GPW presented an update on the implementation of Ministerial Review Panel report recommendations.
The target is to implement the recommendations by 31 March 2024.

The presentation depicts the short, medium and long term timelines within which the GPW anticipates to complete the remaining recommendations.

GPW management is committed to adhere to these timelines.

67 223 Committee Recommendations Response timely submission 11.24.

GPW needs particular focus and oversight on ensuring the of accurate audit data to internal and and consequence management for dereliction in this regard.
external audit 11.25.

The GPW work in collaboration with National Treasury to ensure that non- payment by government clients after 30 days is addressed.

11.26.

The GPW must provide an update on its consultation on the State Printers Bill and finalise the tabling of this legislation as a matter of urgency.
technology (ICT) multi-year There are recommendations which are planned to be achieved beyond the 12 months’ period which are strategic in nature, such as the Information and roadmap, Communication Technology implementation of International Organization for Standardization (ISO), the audit of ISO, as well as the forensic investigations based on the MRP report recommendations.
The GPW has adhered to the statutory reporting requirements of the PFMA and has submitted Annual Financial Statements to this effect.

Audit data is accurate except where it relates to legacy matters and those caused by the data loss, and in this respect the Office of the Accountant General has been requested to assist with technical assistance.
The Audit Matrix has been developed and progress made in the resolution of all audit findings both from AGSA and Internal audit are reported and monitored in all governance structure meetings.

Managers are held accountable and responsible for progress made on all findings.

GPW consistently pays creditors within 30 days of receipt of the invoices.

The Bill has been consulted with seven (7) of the nine (9) provinces (i.e.
provincial government departments which are represented in the relevant clusters), with 2 of the provinces, namely the Western Cape as well as North West still outstanding.

The matter was escalated to Minister in order to obtain the audience from the two provinces.

The letters have been prepared jointly by the DHA’s legal services section and GPW for submission to Minister, and these will be sent to Offices of both Premiers of the two provinces.

12.
12.

OUTSTANDING COMMITTEE’S RECOMMENDATIONS Outstanding from the 2022 and previous Budget Review and Recommendation Reports.

The Department of Home Affairs 12.1 Strive towards a clean audit opinion and better adhere to in-year audit plans.

In particular, the impairment of departmental revenue in collecting penalties.

Progress on audit plans and the Auditor General Management Letter must continue to form part of all future quarterly performance reporting to the Committee.
12.2 The Home Affairs office must work with the Department of Basic Education and the Department of Social Development to proactively assist these children with social support and/or assist indigent fathers with free DNA testing should this be preventing the child from registering their birth.
The Government Printing Works 12.3 Ensure that the State Security Printers Bill is submitted to Parliament as soon as possible bearing in mind the stability and capacity of the organization to effect these legislative changes.

68 224 12.4 GPW should work closely with National Treasury, the DHA, SITA and the Auditor-General to ensure that the Annual Report and Financial Statements 2022-23 financials are submitted on time.
12.5 Regarding human resources in the IT environment, the committee urged GPW to develop a strategy to augment skills and capacity, to ensure sustainability in the long run.

12.6 The Minister of Home Affairs should ensure that all the recommendations of the Ministerial Review Panel Report on the Data loss at GPW are implemented, particularly the consequence management, upgrade and maintenance of IT infrastructure and multiple redundancy backups.
The Electoral Commission 12.7 The IEC in collaboration with key stakeholders will need to further improve to ensure that they meet their annual targets to register the 10 million unregistered eligible South Africans to participate in elections during the upcoming National and Provincial Elections scheduled for 2024.

12.8 The continued IEC clean audit is commendable and focus should now be directed to improve performance against targets, which have remained at around 75% over the last few years.

13.
13.

BUDGET REVIEW RECOMMENDATIONS 2023 Based on the continuous engagement with the Department of Home Affairs, the Government Printing Works and the Electoral Commission for the 2022/23 financial year, the Committee recommends the following to the Minister of Home Affairs to report back within 6 months of the tabling of this report (End of April 2024): Department of Home Affairs 13.1.
The AGSA has presented similar reports to the Committee on the DHA audit which has been Unqualified with findings since the 2018/19 financial year.

The DHA must better address monitoring the implementation of their audit action plans on compliance with applicable laws and regulations to move to the target of a clean audit.

13.2.

The DHA must continue to address long queues at DHA offices, including expanding mobile units, network reliability, quality of services by staff, and modernising offices.

13.3.
13.3.

The DHA must address gender and disability equity targets in filling positions of the DHA top management.

Account should also be given as to why this has not been done yet.

13.4.

The department was operating at 42 percent of its capacity and the Immigration Branch only met 25% of its targets in particular in the permitting unit.
The DHA should report on the feedback by National Treasury for the 2nd capacitation business case or more funding to operate at an acceptable level especially in the Immigration branch.

13.5.

Having implemented much of the Lubisi report on Immigration Permitting, report back should be given to the renewed decentralised delegation of visa and permit decisions being considered by the DG to address backlogs.

13.6.

The Department should use its limited resources and technology more efficiently.
An assessment of staff productivity over time was needed since it appears that staff were each 69 225 contributing to 18% less documents each in 2023 than 14 years ago.

More effective measures needed to be put in place to monitor the productivity of staff in this regard.

13.7.

The DHA must urgently address the long outstanding remaining impairment of R440 million in relation to the Department of International Relations and Cooperation (DIRCO).

13.8.
13.8.

The Committee noted that the DHA has IT weaknesses and there was a recommendation that the DHA should develop a roadmap to address the weaknesses.

These weaknesses allow fraud and corruption to occur, especially in the permitting unit.

13.9.

Update the Committee quarterly on the progress on the R839.9 million allocated in 2023/24 for the digitisation of records project.

13.10.
13.10.

Report on the delay in the procurement of the Passenger Name Recognition (PNR) due to the need for an open tender, and the related National Treasury un-earmarking of funds.

13.11.

Report on the appointment of CTS Consortium as transaction adviser on the Visa Facilitation Services on 12 May 2023 and on Immigration Services requesting Bid Adjudication Committee permission to go to open market on this issue.

13.12.
13.12.

Report back on the CSIR and SITA collaboration and what measures would be implemented and need funding to improve network stability at front offices.

Border Management Agency 13.13.

The BMA needs to be better funded to improve the prevention of undocumented migration.

The total of R2.9 billion over the MTEF period from 2022 to 2025 was promised for the establishment of the Border Management Authority.
However it was indicated in the Budget Presentation for 2022/23, that the BMA only received R168 million in 2022 and R278.6 million for the first quarter of 2023 year (only 15% of the three year allocation after 15 months).

13.14.

Since the BMA establishment the staff consultation revealed certain transitional issues regarding employee benefits and salaries that must be addressed and reported to the Committee as soon as possible to ensure that officials are not further adversely effected.

13.15.
13.15.

Address the delayed transfer of SAPS 6,000 officials across all ports in the country compared to the 600 officials that the BMA will have, this meant the BMA cannot fully take on the function of administering border posts.

The Electoral Commission (IEC) 13.16.

Address issues on the requirement for overseas voters to have passports and IDs for voting while South Africans in the country will only require an Identity Document.

South Africans abroad struggle to receive both documents on time.

13.17.
13.17.

For South African citizens who have lost citizenship as a result of acquiring another citizenship without informing the Minister of Home Affairs, the Constitutional Court ruled that it was unconstitutional.

The DHA, DIRCO and IEC would need to together ensure that they receive their passports and Identity Documents on time for the 2024 Elections.

70 226 13.18.
70 226 13.18.

The IEC need to report on the procurement of the building for its national office to prevent unnecessary further high expenditure on rental of its current offices.

13.19.

The IEC must address the weaknesses pointed out by the AG in the internal controls around the process of compiling and collating performance information reported in the performance report.

Government Printing Works (GPW) 13.20.


The Committee recommended that there be more frequent meetings between the Committee, GPW, National Treasury and the GPW Internal Audit to find solutions to the outstanding Ministerial Review Panel recommendations around the GPW data loss.

13.21.

Refer recommendations to SCOPA???

13.22.

Update the Committee on reports in its budget that there are no costs budgeted for data recovery whereas there were significant challenges in auditing due to lost data.

13.23.
13.23.

GPW needed to work proactively to ensure that it finalises its already late 2022/23 Annual Report as soon as possible after receiving its audited report back from the AGSA.

13.24.

Address the critical issues raised by AGSA in relation to GPW implementation of their Audit Action plans.

Particularly in the areas of ICT and Business Development where 20% or less of 87 targets were resolved.

13.25.
13.25.

The Committee would need to convene a meeting with the GPW, National Treasury and the Internal Audit and engage with the Minister to assess the effectiveness and accountability of GPW management.

13.26.

Microsoft patches are not sufficient to secure the IT environment whilst GPW was waiting for the tender to procure IT services.

GPW should undertake all possible routes to ensure that the systems were secured after the data loss and address the backups to return to secure document printing.
Report to be considered.

71 227 6.

THE PORTFOLIO COMMITTEE ON SPORT, ARTS AND CULTURE ON THE PERFORMANCE OF THE NATIONAL DEPARTMENT AND ITS ENTITIES, DATED 20 OCTOBER 2023 The Portfolio Committee on Sport, Arts and Culture (“Committee”), having considered the performance of the Department of Sport, Arts and Culture (DSAC or “Department”) for the 2022/23 financial year, reports as follows: 1.
INTRODUCTION The beginning of the 2022/23 financial year coincided with the lifting of the National State of Disaster declared in response to combatting the COVID-19 pandemic.

While the ravaging physical effects of the pandemic have subsided, the lingering impact on the global economy is still being felt.
In the South African context and as of 03 January 2020, the World Health Organisation recorded around 4.1 million cases of COVID-19 with 102 595 deaths.1 The pandemic was a major disruption in Government’s efforts to address the triple challenges of unemployment, poverty and inequality and has had a devastating effect on the most vulnerable population groups.
In its Ten-Year Review of the National Development Plan (NDP), the National Planning Commission (NPC) interrogated factors that affected the implementation of NDP since its adoption.
Along with the COVID-19 pandemic, the NPC also cites the “civil unrest in Gauteng and KwaZulu-Natal in July 2021, the Russia- Ukraine war, the energy crisis, and the severe flooding and landslides in KwaZulu-Natal and Eastern Cape in April 2022” as further contributing factors2 The ongoing impact of climate change resulting in major natural disasters as well as the latest war between Israel and Gaza will undoubtedly intensify existing international tensions and further weigh on the global economy.
The Sport, Arts and Culture (SAC) sector has the potential to create employment opportunities and stimulate the economy.

Further, through the central role it plays in driving the cause for social cohesion, nation-building and safer communities, the work of the Department of Sport, 1 World https://covid19.who.int/region/afro/country/za, accessed 12 October 2023) 2 National Planning Commission, Ten-Year Review of the NDP: 2012 – 2022 (Pretoria: NPC, 2023), p.2.
Organization, Dashboard: COVID-19 (WHO: Health South Africa 1 228 Arts and Culture (the “Department”) and its entities is vital to breaking through barriers that entrench racial, class, gender, and spatial divisions which are deeply embedded and persistent and hinder the attainment of national priorities.

It is against this backdrop that the review and assessment of the performance of the Department and the SAC sector is evaluated.
The Department has been in existence in its current form since the beginning of the 2020/21 financial year and has experienced a change in ministers towards the end of the 2022/23 financial year, however this has not necessarily brought about instability in the Department.

However, following the expiry of the former Director-General’s (DG) contract, the post has been vacant since September 2022.
Between 10 and 17 October 2023, the Committee was briefed by the Department on its 2022/23 Annual Report; the Auditor-General of South Africa (AGSA), other structures/entities as detailed in this report.

1.1 Mandate of the Portfolio Committee The Committee is mandated by the Constitution and the Rules of Parliament to oversee the activities and performance of the Department and the entities that report to it.
Furthermore, the Committee is also required to consider, amend and/or initiate legislation; consider international agreements and provide a platform for the public to participate and present views on issues and/or legislation specific to the sport, arts and culture sectors.

To enhance Parliament’s oversight role, the Money Bills Amendment Procedure and Related Matters (Money Bills) Act (No.
9 of 2009) was promulgated to provide Parliament with a procedure to make recommendations to the Minister of Finance to amend the budget of a national department.

A key provision of this Act is that Portfolio Committees must annually compile Budgetary Review and Recommendation (BRR) Reports.

These BRR Reports provide an assessment of service delivery performance given available resources; evaluates the effective and efficient use of resources; and may make recommendations on the forward use of resources.
The BRR Reports also acts as a mechanism to measure service delivery and identify areas that require urgent intervention.

The BRR Reports are also source documents for the Committees on Appropriations when they make recommendations to the Houses of Parliament on the Medium-Term Budget Policy Statement (MTBPS).
2 229 1.2 Purpose of and method to develop the 2022 Budgetary Review and Recommendation Report of the Portfolio Committee on Sport, Arts and Culture The purpose of the BRR Report is to account, in accordance with the National Assembly (NA) Rules 339 and 340, for work done by the Committee in considering the 2022/23 Annual Reports of the Department and entities, which were tabled in accordance with Section 40(1) of the Public Finance Management Act (PFMA) (No.
1 of 1999) and referred by the Speaker to the Committee for consideration and report.

In preparation for the BRR Report, the Committee considered the Department and entities’ prevailing Strategic Plans, the 2022/23 budget allocations and Annual Performance Plans (APPs), the quarterly performance and expenditure trends, and conducted oversight by having briefings on specific initiatives and programmes.
On 10 October 2023, the Committee invited the AGSA to provide an in-depth overview of the 2022/23 audit outcomes of the Department and the entities.

The Committee considered the Department’s 2022/23 Annual Report on 17 October 2023.
The Committee’s in-year oversight activities also included the consideration of the annual reports of two entities, namely the South African Heritage Resources Agency (SAHRA) and the South African Institute for Drug-Free Sport (SAIDS); the constitutional institution in the name of the Pan South African Language Board (PanSALB); and one national sport federation, namely Athletics South Africa (ASA).
1.3 Relevant policy focus areas National Development Plan The NDP envisions a South African society in 2030 that will embrace its diversity rather than highlight observable differences along the contours of race, class, gender, religion, culture, and other social constructs.

Underpinning the NDP vision are social cohesion and nation-building, which are critical to the objectives of the developmental state.
The Constitution entrenches non-racialism, non-sexism, democracy, equality before the law, and prosperity for all and requires social actors to work collectively in the realisation of this national vision.

The Department, as a lead department in has put in place a range of interventions that seek to build a socially cohesive society with a common identity with the aim to fulfil the national goal of social cohesion and safe communities.
The sport, arts and culture (SAC) sector also works in pursuance of the vision of the NDP to address the triple challenges of unemployment, poverty and inequality.

3 230 Revised White Paper on Arts, Culture and Heritage (2017, endorsed in 2020) In August 2018, Cabinet approved a new White Paper on Arts, Culture and Heritage which revokes elements of the 1996 White Paper.
It is a culmination of the review of the 1996 White Paper, which appreciated the achievements in all the facets of arts, culture and heritage and reflected on areas that remained a challenge in advancing nation-building and social cohesion.

The White Paper aims for a dynamic, vibrant and transformed South African arts, culture and heritage sector that will contribute towards nation-building, social cohesion and socio- economic inclusion.
White Paper on Sport and Recreation for the Republic of South Africa The White Paper on Sport and Recreation for the Republic of South Africa (2011) is the third in a series of official policies on sport and recreation since the establishment of the democratic Government in 1994.
Its purpose is to transform the delivery of sport and recreation by ensuring equitable access, development and excellence at all levels of participation and to harness the socio-economic contributions that can create a better life for all South Africans.

2022 State of the Nation Address3 In February 2022, the President, Mr Ramaphosa addressed the South African citizens during the delivery of his State of the Nation Address (SONA).
The key focus of SONA 2022 continues to build on the foundation of the Economic Reconstruction and Recovery Plan (ERRP), which remains the common programme to rebuild the economy.

As such the 2022 SONA focuses on the priorities identified in the 2021 SONA, namely: • Overcoming the COVID-19 pandemic; • A massive rollout of infrastructure; • A substantial increase in local production; • An employment stimulus to create jobs and support livelihoods; and • The rapid expansion of our energy generation capacity.
The President highlighted that the Social Employment Fund, introduced through the second phase of the Presidential Employment Stimulus Programme (PESP), which aimed to create a further 50 000 work opportunities using the capability of organisations beyond Government, 3 MC Ramaphosa, State of the Nation Address by President of the Republic of South Africa, Mr Cyril Ramaphosa (Cape Town, 10 February 2022).
4 231 in areas such as urban agriculture, early childhood development, public art and tackling gender- based violence.

The SONA 2022 highlights intensification of the fight against gender-based violence (GBV).

The implementation of the emergency response plan on GBVF is one of ten focus areas in support of the strategic outcomes devised by the Department.

2.
2.

RESPONSE TO THE PREVIOUS FINANCIAL YEAR RECOMMENDATIONS OF THE COMMITTEE AND THE SELECTED 2023/24 BUDGET VOTE REPORT RECOMMENDATIONS 2.1 2022 BRR Report Recommendations In accordance with section 7(4) of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No.
9 of 2009), which provides the following: “The Minister must submit a report to the House at the same time as tabling the Bills referred to in subsections (1) and (3), explaining how the Division of Revenue Bill and the national budget give effect to, or the reasons for not considering, the recommendations contained in the reports referred to in section 5(2), 6(7) and 6(12).

Accordingly, the Report of the Minister of Finance was tabled to Parliament.
The Committee’s 2022 BRR report made one recommendation to the Minister of Finance.

The Committee recommended that the Minister of Finance should prioritise adequate funding and allocation towards the implementation of the White Paper on Arts, Culture and Heritage over the MTEF period.

In response to this recommendation, the Minister indicated, “As noted, there is little scope to provide additional funding at this time.
The Department of Sport, Arts and Culture is advised to reprioritise funds in order to implement the white paper in a phased manner.4 The Committee also made recommendations to the Department.
The following are selected recommendations from the 2022 BRRR: • In response to the leadership instability and the vacancy rate, the Committee recommended that the Department to provide a comprehensive overview of vacancies in key leadership positions and the timeframes associated with the filling of these by the end of the fourth quarter of 2022/23.

4 National Treasury, Budget Review 2023 (Pretoria, National Treasury), p.105.
5 232 • The Department should strengthen its oversight function over its entities to ensure that they have adequate measures in place to prevent irregular expenditure.

The Committee therefore requests a comprehensive overview of the audit action plans for the portfolio by the end of the fourth quarter of 2022/23.
• The Committee noted delays in the finalisation of heritage legacy infrastructure projects and recommended the Department to provide quarterly reports on the projects that have been delayed and thus overdue.

• The Department, in cooperation with national federations should continue to work on ensuring that township and rural schools are adequately supported to create conditions that will increase the uptake of minority sporting codes.
Additionally, more effort should be placed on securing private sponsorship which will lead to improved transformation in sports.

• The Department should continue to work alongside the entities that have regressed in the audit opinion to ensure audit action plans are implemented and that there is an improvement in their audit outcomes by the end of the 2022/23 financial year.
2.2 2023/24 Committee Budget Vote 37 Report This section provides a summary of the selected 2023/24 Committee Budget Vote 17 Report Recommendations.
Table 1: Recommendations by the Committee to the Minister with corresponding responses5 Committee Recommendations DSAC Action Social Cohesion and Nation Building Compact: The Department together with National Economic Development and Labour Council (NEDLAC) should ensure that this Compact is urgently signed to prevent the stalling of efforts to build a socially cohesive nation.
The Department of Sport, Arts and Culture has developed the National Social Compact for Social Cohesion and Nation Building, which includes the Implementation Plan and the Monitoring Framework.

The purpose of the Social Compact is to ensure that all the key sectors of our society, that includes business and civil society play a meaningful role to foster social cohesion and nation-building, a task that cannot be solely carried out by the government.
Although drafted, the Social Compact is undergoing the final consultative processes to ensure buy-in by the key social partners, including NEDLAC.

This process will be followed by approval through 5 Department of Sport, Arts and Culture, Response to the Speaker of the National Assembly on the adopted 2023 Budget Vote Recommendations (communication via email, 2023).
6 233 Committee Recommendations DSAC Action and NEDLAC DSAC devise a plan to establish an internal infrastructure Project Management Unit before the beginning of the next financial year to ensure successful the implementation of infrastructure projects as these projects not only transform the sporting and heritage landscape but also contribute to the economy job creation as through envisaged by the ERRP.
Mzansi Golden Economy Strategy: The Department should that applicants and beneficiaries are provided with adequate support.

ensure heed the DSAC recommendations of AGSA to improve audit outcomes across the portfolio The Market Theatre Foundation to keep DSAC and the Committee abreast of the implementation of the recommendations outlined by the forensic report on governance and legal matters Karate SA continues with its raising to encourage initiatives awareness Cabinet processes.
It is anticipated that the resultant accord, that is the Social Compact, will contribute substantially to providing the conducive economic and socio-political conditions for social cohesion to thrive in South Africa.

Formulation of the Terms of Reference for appointment of the PMU has started and the planned date for finalisation and approval is the 7th of July 2023.
R6.5 million is set over the 2023 MTEF for appointment and services of the PMU which will provide project management support in terms of project identification as per mandate and service delivery priorities of the department, project preparation and funding, procurement and implementation and monitoring to ensure timeous completion of all funded projects.

Jobs created will be a standing variable that will be reported per each project to be implemented.
The Department is in the process of implementation of the recently approved Cultural and Creative Industry Masterplan.

Consultation on the implementation have been conducted with all provinces; and the Department has also commenced with alignment of the Master Plan to the Annual Performance Plan to inform the next MTSF.

Further, the review of the current MGE has been done; and a revised Funding Model has been finalised.
Internal Audit will continue to provide assurance on the adequacy and effectiveness of the management action plan on the AGSA findings.

Internal Audit will report progress thereof to the Executive Management and Audit Committee on a quarterly.

The Department is closely monitoring the implementation of recommendations of a forensic report.

The Market Theatre is required to report to the Department on these and other matters quarterly.
The Department, as part of the financial allocation discussions with National Federations will consider the resolution and 7 234 Committee Recommendations DSAC Action in with to expedite more women and girls to acquire the empowering skills that Karate offers.

DSAC and Boxing South Africa continue working together the implementation of the audit implementation plan.
to endeavours DSAC of address issue the gender imbalances representation as a matter of urgency the appointment of the next the Council considering increase in the popularity of women’s boxing.
The matter of laboratories that have lost World Anti- Doping Agency (WADA) accreditation is addressed urgently to prevent SAIDS from incurring unnecessary expenditure import to could that services potentially be provided domestically request Karate SA to include it in their Business Plan for the Departments funding consideration.

Boxing SA submit the Audit Implementation plan to the Department on a quarterly basis.
This implementation plan is monitored by the Department to ensure that findings are resolved and do not repeat in the next audit.

The issue of gender imbalance is noted by the Department.

Efforts will be made to ensure that the next Board, which will be appointed this year, is balanced in terms of gender representation.

The accreditation of the South African Doping Control Laboratory (SADoCOL) based in Bloemfontein has long been reinstated.
The Department has assisted SADoCOL to prepare a turnaround strategy which assisted in regarding their accreditation.

Financial assistance has been provided to the laboratory as part of the PESP allocation, further the Department has recognised the laboratory as an entity eligible for funding.

This is the only testing laboratory in Africa and the Regional Anti-Doping Organisation (RADO) in member countries have been encouraged to support the laboratory instead of using those in other continents.
It is important to note that while one of the budget vote report recommendations centred on the emerging risks highlighted by SAIDS which included obsolete legislation which is not in alignment with the WADA codes.

The Committee recommended that the Department’s Task Team which was established to work with SAIDS on the matter of the obsolete legislation should ensure that the Institute is provided with adequate support to stave off the potentially negative impacts of the malalignments with the WADA codes.
This recommendation was not responded to in the communication sent to Parliament.

8 235 3.

OVERVIEW OF THE KEY RELEVANT POLICY FOCUS AREAS 3.1 Mandate of the Department The mandate and/or function of the Department is derived from the Constitution of the Republic of South Africa (the “Constitution”), including the Preamble and Founding Provisions, and in sections 16(1), 30 and 32 which respectively deal with the rights pertaining to freedom of expression; language and culture; and access to information.
Further, the Constitution affirms the democratic values of human dignity and equality.

In line with these Constitutional imperatives, the Department has been assigned the powers and functions to develop and implement national policies and programmes relating to sport, arts, culture, heritage and recreation in the country.
3.2 Strategic objectives The 2019-2024 Medium-Term Strategic Framework (MTSF) represents the second five-year phase of implementation of the NDP which commits Government to 14 key outcomes.

The Department is responsible for coordination the implementation of Outcome 14 of the NDP, ‘a diverse, socially cohesive society with a common national identity’.
Accordingly, the Department’s ongoing and principal objective is to provide an enabling environment to cultivate an active, creative, winning and socially cohesive nation.

Government has committed to the seven priorities in the NDP five-year implementation plan over the MTSF.
These priorities are economic transformation and job creation; education, skills and health; consolidating the social wage through reliable and quality basic services; spatial integration, human settlements and local government; social cohesion and safe communities; a capable, ethical and developmental state; and a better Africa and world.
As such, the Department’s Strategic Plan which outlines five outcomes which will see efforts and resources are thus directed toward achieving a transformed, active, creative and winning nation.
These outcomes are linked to the priorities of Government as set out below: Table 2: Link between the Department of Sport, Arts and Culture outcomes and Government priorities DSAC Outcomes Outcome 1: Increased market share of and job opportunities created in sport, cultural and creative industries Government Priorities Economic transformation and job creation 9 236 DSAC Outcomes Outcome 2: A diverse, socially cohesive society with a common national identity Outcome 3: Transformed, capable and professional SAC Sector Outcome 4: Integrated and accessible SAC infrastructure and information Outcome 5: Compliant and responsive governance Source: DSAC, Strategic Plan 2020 – 2025 (Pretoria, DSAC, 2020).
Government Priorities Social cohesion and safe communities Education, skills and health Spatial integration, human settlements and local government Building a capable, ethical and developmental State The Department is mandated to develop and implement national policies and programmes relating to SAC in the country.
This means that the Department needs to provide leadership to the SAC sector to accelerate its transformation; oversee the development and management of sport, arts and culture in South Africa; legislate on sports participation, sports infrastructure and safety; improve South Africa’s international ranking in selected sports through a partnership with the SASCOC; preserve, develop, protect and promote the cultural, heritage, and linguistic diversity and legacy of South Africa; lead nation building and social cohesion through social transformation; enhance archives and records management structures and systems; and promote access to information.
The Department is responsible for administering 22 pieces of legislation and overseeing 28 public entities.

The Committee oversees both the Department and its entities.

The sector focus for the public entities reporting to the Department include Development (Funding) Bodies; Performing Arts Institutions; Museums; Heritage; Libraries; Language; Professional Boxing; and Drug-Free Sport.

4.
4.

OVERVIEW AND ASSESSMENT OF THE FINANCIAL AND NON- FINANCIAL PERFORMANCE FOR THE PERIOD 01 APRIL 2022 TO 31 MARCH 2023 This section of the report provides an overview and analysis of funds appropriated, the rate of predetermined objectives achieved, and human resources as at 31 March 2023.

4.1 Financial performance The Department’s final appropriation for the 2022/23 financial year was R6.31 billion.

Actual expenditure for the period under review was R6.24 billion.
The expenditure rate is thus 98.9 per cent.

For the 2021/22 financial year, final appropriation was R5.75 billion with actual 10 237 expenditure amounting to R5.64 billion, which represents 98.2 per cent of the budget.

The Department has thus increased its expenditure against appropriation with unspent funds decreasing from R103.6 million in 2021/22 to R68.9 million in 2022/23.
The Department’s budget funds four programmes; namely Programme 1: Administration; Programme 2: Recreational Development and Sport Promotion; Programme 3: Arts and Culture Promotion and Development; and Programme 4: Heritage Promotion and Preservation.

The purpose and final appropriation for each programme is tabulated below.

Collectively, Programmes 2 to 4 received 91.3 per cent of the Department’s total budget allocation.
Table 3: DSAC budget programmes, purpose and 2022/23 final appropriation Purpose Programme Final % of total Appropriation allocation R’000 549 631 8.7% 1 344 440 21.3% 1 761 017 27.9% 1.

Administration To provide strategic opportunities, leadership, management and support services to the Department.

To support the provision of mass- the participation development of elite athletes, and the regulation of facilities.

To develop and promote arts, culture and the language, and national cohesion strategy.
and maintenance implement 2.

Recreation Development and Promotion Sport 3.

Arts and Culture Promotion and Development 4.

Heritage Promotion and Preservation To preserve and promote South African heritage, including archival and heraldic heritage; as well as to oversee and transfer funds to libraries.

2 650 365 42.0% 6 305 453 100% Source: DSAC, Annual Report 2022/23 (Pretoria: DSAC, 2023), p.24.
11 238 Table 4: DSAC 2022/23 Expenditure by Programme and Economic Classification Final Actual appropriation expenditure Expenditure as Variance % of final appropriation R’000 Programme 1.

Administration 549 631 533 900 15 731 2.

Recreation Development 1 344 440 1 337 273 7 167 and Sport Promotion 97.1% 99.5% 3.

Arts and Culture Promotion 1 761 017 1 743 089 17 928 99.0% and Development 4.
Heritage Promotion and 2 650 365 2 622 404 27 961 98.9% Preservation TOTAL Economic classification 6 305 453 6 236 666 68 787 98.9% Current payments 1 084 949 1 045 308 39 641 Transfers and subsidies 5 143 903 5 105 927 28 976 Payments for capital assets 84 347 84 177 Payments for financial assets 1 254 1 254 170 - TOTAL 6 305 453 6 236 666 68 787 Source: DSAC, Annual Report 2022/23 (Pretoria: DSAC, 2023), modified.
96.3% 99.4% 99.8% 100.0% 98.9% In terms of the economic classification, the Department’s expenditure comprised of mainly transfers and subsidies (81.8 per cent), current payments (operational expenses) (16.8 per cent), and payments of capital and financial assets (1.4 per cent).

Table 4 above reflects that overall under-expenditure amounts to R68.7 million or 1.1 per cent of the final appropriation.

Under-expenditure in 2021/22 amounted to R103.6 million or 1.8 per cent of the final appropriation.
Therefore, this indicates a year-on-year improvement in unspent funds.

The Table 5 below provides an outline of the unspent funds per economic classification.

Table 5: Outline of unspent funds per economic classification for 2022/23 Economic classification Compensation of employees (CoE) The variance of R32.4 million was caused by vacant positions that are at different stages of the selection process.
The variance is due to the saving R’000 32 383 12 239 Economic classification accumulated throughout the financial year as advertised posts were not filled by the beginning of the financial year.

The Department filled many of the advertised positions through internal promotion thus resulting in small margin in salaries.

The vacant positions due to the internal promotion, could not be filled before the end of the period under review.
Goods and services The variance of R7.3 million was mainly attributed to: • • • the service provider for the procurement and installation of ICT equipment for the operationalisation of the OR Tambo Garden of Remembrance had not completed the tasks in line with the SLA, the SA Sport Awards invoices for travelling and accommodation were not yet received by the end of March 2023, and the South African Cultural Observatory (SACO) invoice was based on work done.
Departmental agencies and accounts (Current/Capital) The variance of R18.7 million was mainly attributed to: • a transfer to the National Museum for the implementation of the PESP was not fully transferred as the entity was not able to attract the anticipated applications in its three funding categories, • a transfer to the National Library of SA for the Community Library Services Grant was not fully transferred due to slow progress on projects, which results in recurring under expenditure, • Amazwi SA Museum of Literature and Die Afrikaanse Taalmuseum – funds could not be spent as the DPWI indicated that they could not include the infrastructure project on their procurement plan as the project was allocated to them during the financial year by DSAC, and Iziko Museums of South Africa – payments were made in line with invoices received from the DPWI.
• Higher education institutions The variance of R45 000 was due to failure by the university implementing an MGE project to submit compliance documents to facilitate the last tranche, and the approved funding to universities implementing human language technology projects was less than the allocation Foreign government organisations The variance of R378 000 was mainly attributed to fluctuation in the rand to pound and dollar exchange rate at the time of processing payments for annual subscription/ membership fees to foreign governments and international organisations.
Public corporations (Current/Capital) The variance of R4.3 million was mainly attributed to second tranche payments that could not be made to some MGE beneficiaries whose events were implemented in March 2023.
Non-profit institutions (NPIs) (Current/Capital) The variance of R2.8 million was mainly attributed to: R’000 7 258 18 689 45 378 4 264 2 844 13 240 Economic classification R’000 • second tranche payments that could not be made to some MGE • beneficiaries whose events were implemented in March 2023; the implementation of target groups projects was delayed, resulting in commencement of implementation in mid-March 2023; consequently, beneficiaries were unable to complete the projects and report, resulting in non-payment of second tranches; and • a request for financial assistance from the province for the annual commemoration of Isandlwana was received after the event.
Households The variance of R2.8 million was attributed to: 2 755 • second tranche payments that could not be made to cultural and • creative industries development and MGE beneficiaries, and implementation of the placement strategy of unemployed graduates in the internship programme and placing them in the heritage sector will only be to misclassification of the budget.
the 2023/24 financial year due implemented in Machinery and equipment The variance of R171 000 was attributed to an invoice for the procurement of laptops that was not submitted by the service provider by the end of the financial year.

Total 171 68 787 Source: DSAC, Annual Report 2022/23 (Pretoria: DSAC, 2023) pp.24-25.

For the period under review all programmes spent above 95 per cent of the total appropriation.

As in the last financial year, the conditional grants, viz.
the Mass Participation and Sport Development Grant and the Community Library Conditional Grants, of R603.5 million and R1.57 billion, respectively, have both been fully paid to the provinces.
4.1.1 Unauthorised Expenditure, Irregular, and Fruitless and Wasteful incurred in the 2022/23 financial year Section 38(1)(c) (ii) of the PFMA states that the accounting officer of a department, trading entity or constitutional institution must take effective and appropriate steps to prevent unauthorised as well as irregular, fruitless and wasteful expenditure resulting from criminal conduct.
The financial statements as presented in the DSAC 2022/23 Annual Report reflect the following: 14 241 • Unauthorised expenditure: No unauthorised expenditure was incurred in the period under review.

• Irregular expenditure: The opening balance for irregular expenditure at the beginning of 2022/23 was R451.0 million.

There were no amounts incurred as irregular expenditure in the period under review, thus the closing balance is R451.0 million.
An amount of R7.2 million was disclosed as under assessment in the 2022/23 financial year.

This relates to the supplier who scored the highest points during the evaluation process but was not awarded due to the price offered not being market related and deviation which was found not be justifiable.

The Department has lodged a dispute with National Treasury to assess if meets the requirements to be disclosed as irregular expenditure.
• Fruitless and wasteful expenditure: The opening balance for fruitless and wasteful expenditure at the beginning of the financial year was R70.9 million.

There were no amounts incurred as fruitless and wasteful expenditure during the 2022/23 financial year.

• Contingent liabilities: The opening balance at the beginning of the financial year was R120.5 million.
Liabilities incurred during the period under review amounts to R28.5 million, resulting in a closing balance of R149.0 million at the end of the financial year.

• Contingent assets: A contingent asset amounting to R13.1 million has arisen from unplanned and unexpected events not under the control of the Department.
An inflow of resources will become virtually certain when their existence is confirmed and finalised by courts involved and then the related asset will be recorded as a receivable for departmental revenue in the notes.

4.1.2 Auditor-General’s report on the Department and the portfolio 4.1.2.1 Department of Sport, Arts and Culture6 The AGSA raised the following matters: • Financial statements: The financial statements submitted for auditing were prepared in accordance with the Modified Cash Standard (MCS).
o Contingent liabilities: With reference to contingent liabilities of R212.9 million (comprised of the closing balance of R149.0 million and R63.9 million for intergovernmental payables) disclosed in the notes to the financial statements, the 6 DSAC, Annual Report 2022/23 (Pretoria: DSAC), pp.163-167.

15 242 AGSA notes that the Department is the defendant in various claims and lawsuits, which they are opposing.
The ultimate outcome of these matters could not be determined and no provision for any liability that may result was made in the financial statements.

• Usefulness and reliability of performance information: The AGSA evaluated the usefulness and reliability of performance information reported under Programme 2 and Programme 3.

A material finding was made on the indicator “Percentage of National Federations meeting 50 per cent or more of all prescribed charter transformation targets”.
The finding is that while the indicator was included in the approved annual performance plan and strategic plan but was not clearly defined during planning processes.

It was also not determined how the related target would be measured and what evidence would be needed to support the achievement.

Consequently, the information might be less useful for measuring performance.
• Compliance with legislation: The AGSA made the following material findings: o Transfer of funds: Appropriate measures were not maintained to ensure that transfers and subsidies to entities were applied for their intended purposes, as required by National Treasury regulation 8.4.1. o Consequence management: The AGSA was unable to obtain sufficient appropriate evidence that disciplinary steps were taken against officials responsible for incurring irregular expenditure as investigations into some irregular expenditure were not performed.
• Internal control deficiencies: Leadership did not exercise adequate oversight responsibility over compliance with applicable legislation.

Effective and adequate preventative controls were not implemented timeously, this resulted in instances of non- compliance with key legislation.

Management did not ensure that methods of measurement were defined in a manner that allows the performance indicator to have a clear meaning for measuring performance.
• Material irregularities: The AGSA noted that the Department made transfer payments amounting to R7.5 million to a beneficiary for implementation of a project in broadcasting.

This agreement was entered into in 2018 and the Department paid three tranches between June 2018 and June 2019 and the beneficiary spent the transferred funds.

The Department however did not implement timely and appropriate procedures to monitor the usage of funds by the beneficiary.
No evidence could be provided to 16 243 confirm that the funds were used for the project as agreed between the Department and the beneficiary.

This resulted in non-compliance with Treasury regulation 8.4.1. and a financial loss of R7.5 million to the Department.
A forensic investigation into the matter was concluded in October 2022, and based on the outcomes of this investigation, the accounting officer (AO) reported a criminal case of theft, fraud and misrepresentation to the South African Police Service (SAPS) in November 2022.

The AO is taking appropriate disciplinary action against as well as pursuing civil recovery from the responsible official.
• Investigations: The AG further notes, “internal audit unit referred some matters relating to legacy projects for further investigation by the Directorate for Priority Crime Investigations (Hawks)”.

These investigations were with the National Prosecuting Authority (NPA) still in progress when the AG’s report was concluded.
Irregular, fruitless and wasteful expenditure The AGSA in its presentation to the Committee provided an overview of the changes to the National Treasury requirements for reporting on irregular, fruitless and wasteful expenditure (IFWE).

• National Treasury Instruction No.


4 of 2022/2023: PFMA Compliance and Reporting Framework (Instruction) which came into effect on 03 January 2023, was issued in terms of section 76(1)(b), (e) and (f), (2)(e) and (4)(a) and (c) of the PFMA; • The new framework brought significant changes in relation to the disclosure of IFWE.

These changes are as follows: o Movement in the disclosure note of IFWE has been moved from annual financial statements to the annual report.
o PFMA institutions will only disclose IFWE incurred in the current year, with a one-year comparative analysis.

o Historical balances (i.e., opening balances) have been completely removed from the annual financial statements.
• The AGSA has subsequently refined its audit approach to uphold transparency by continuing to audit the IFWE disclosure in the annual report and has signalled to the Committee that this change removes the disclosure of the historical balances for IFWE means that the oversight structures may not be able to fully exercise their oversight 17 244 roles.

Furthermore, no audit assurance will be provided on the additional disclosures that have been moved from the AFS.
4.1.2.2 Snapshot of the portfolio7 In its presentation to the Committee, the AGSA provided a snapshot of the audit across the portfolio.

The AGSA noted that while the portfolio has 29 entities, including the Department, it had completed audits of 28 auditees for the 2022/23 financial year.

One entity, namely the Mandela Bay Theatre Complex (MBTC), submitted the AFS late and the audit is undergoing for two financial years since this is the first time the entity is being audited by the AGSA.
The MBTC will thus not be considered in the summary below.

The portfolio achieved nine clean audits (32 per cent of the portfolio).

Sixteen auditees (57 per cent of the portfolio) received financially unqualified audit opinions with findings.

Three auditees (11 per cent of the portfolio) received financially qualified audit opinions, with the National Library of South Africa (NLSA) and Iziko Museums of South African (“Iziko Museums”) having repeat qualifications.
As per the AGSA’s presentation, there was an overall slight regression from the first year of administration in 2019/20.

Movement in audit opinion • Unqualified with no findings: nine (9) out of 29 auditees o Seven auditees retained its clean audit, namely William Humphreys Art Gallery; National Museum Bloemfontein; the Afrikaanse Taalmuseum en -monument (ATM); SAIDS; Kwa-Zulu Natal Museum; SAHRA Theatre; and the Playhouse Company.
o Two entities, namely the South African State Theatre (SAST) and the War Museum of the Boer Republics (“War Museum”), improved their audit opinions from qualified with findings and unqualified with findings, respectively.
• Unqualified with findings: 16 out of 29 auditees o Thirteen auditees retained their unqualified with findings audit opinion, including DSAC; Market Theatre Foundation; National Film and Video 7 Auditor-General of South Africa, Budgetary Review and Recommendations Report (03 October 2023).
18 245 Foundation (NFVF); the Performing Arts Centre of the Free State (PACOFS), National Arts Council (NAC); Amazwi Museum for Literature; Luthuli Museum; Boxing South Africa (BSA); Nelson Mandela Museum (NMM); Robben Island Museum (RIM); National Heritage Council (NHC); South African Library for the Blind (SALB) and Ditsong Museums of South Africa (“Ditsong Museums).

o It is concerning that three entities have regressed in their audit outcomes.
ArtsCape Theatre; uMsunduzi Museum; and the PanSALB regressed from an unqualified with no findings (clean) to an unqualified with findings audit opinion.

• Qualified: three out of 29 auditees o Two entities, namely the NLSA and Iziko Museums have retained their qualified audit opinions.

o Freedom Park regressed from a previously unqualified audit opinion with findings to a qualified audit opinion.
• Outstanding audits: one (1) of the 29 auditees o As indicated above, the MBTC did not submit its annual financial statements by the deadline.

The AGSA further reported on the following: • Financial statements: Of the 28 auditees, 25 (or 89 per cent) presented financially unqualified financial statements to the AGSA, after audit adjustments.

The qualification areas for Iziko Museums and NLSA were Heritage Assets.

Freedom Park had three qualification areas, i.e.


Property, plant and equipment; Cash flow statement; and Statement of comparison of budget and actual amounts.

The AGSA also noted that weak control environment such as inadequate in-year and year-end reporting processes (e.g.

lack of adequate review of financial statements and supporting schedules) have impacted the quality of the financial statements submitted for audit.
Eight (8) auditees that attained unmodified opinions were only able to do so after processing material adjustments to the financial statements submitted for audit, this represents 29 per cent of the portfolio auditees.

• Performance planning and reporting: A total of 23 auditees (83 per cent) presented performance reports that were free from findings after adjustments.

Before audit 19 246 adjustments, this figure was 55 per cent.
The AGSA made findings on planning for service delivery for the Department, NMM and NAC.

The AGSA also made findings on reporting for NMM and Freedom Park.

Challenges with the credibility of performance information may affect planning, while there is a disjuncture in planned targets and actual achievement reported may negatively affect service delivery.
• Compliance with key legislation: The number of auditees that presented with material findings increased from 18 (64 per cent) in 2021/22 to 19 (68 per cent) in 2022/23.

This figure has raised significantly from 2020/21 when only eight out of 28 auditees (26 per cent) presented with material findings.
The most common areas of non-compliance identified include procurement and contract management; quality of financial statements; prevention of irregular, unauthorised, and fruitless and wasteful expenditure; and effecting consequences.

These areas of non-compliance remain unchanged from the 2021/22 financial year.
Irregular, fruitless and wasteful expenditure In keeping with its commitment to transparency, the AGSA reported the total amount of irregular expenditure for the portfolio was R72.0 million in irregular expenditure was incurred during the 2022/23 financial year across the portfolio.

This is a decrease from 2021/22 when irregular expenditure amounted to R105.2 million.
The top contributors in 2022/23 were RIM (R30.5 million); Ditsong Museums (R12.8 million); SAST (R6.1 million); SAIDS (R6.0 million) and the NHC (R4.6 million).

The analysis of the non-compliance indicated that entities had breached one or more of five pillars of procurement equitable, fair, cost effective, transparent and competitive.
This is evidenced across 19 auditees (68 per cent) including NAC, Ditsong Museums, Boxing SA, Luthuli Museum, Freedom Park, Market Theatre, NHC, SAST, PanSALB, Iziko Museums, SAIDS, SAST, NFVF, RIM, NLSA, ATM, NMM, and Artscape.

For the NAC, R3.6 million (96.6 per cent) of the irregular expenditure of R3.7 million relates to non-compliance to the budget framework, i.e.

the entity’s expenditure exceeded its budget.


Other key insights The AGSA provided key insights into infrastructure projects and the Mzansi National Philharmonic Orchestra (MNPO).

20 247 • Community Library Services Grant: The provincial departments underspent grants by R 149.3 million (9 per cent) of the R 1.6 billion funds transferred.

North West and Limpopo had the highest percentage of underspending at 20 per cent respectively, and Gauteng at 18 per cent.
• Infrastructure projects: In the 2021/22 financial year, the AGSA reported on delays in infrastructure projects.

In the period under review, the AGSA followed up on two projects, namely the JL Dube House and the Enyokeni Cultural Precinct.

The Enyokeni project was still on hold while the JL Dube House project commenced, but continued delays were hindering its completion.
• MNPO: Through a memorandum of understanding (MoU) with the NAC, the Department transferred ringfenced funds from the NAC to the newly established MNPO.

The Committee has to date done its due diligence and has dealt with this matter in several committee meetings during the period under review.

The AGSA has noted that the Department did not provide adequate oversight over the use of funds transferred to the MNPO, resulting in non-compliance with Treasury regulation 8.4.1.
This was because the Department did obtain comprehensive quarterly reports to support the spending by the MNPO as provided for in the MoU with the NAC.

The Department also allowed the NAC to disburse a higher tranche payment that was not aligned with the MoU.

The AGSA further noted a potential conflict of interest The chief executive and artistic director of the MNPO (which allocates funding to orchestras, including Johannesburg and KZN Orchestras), holds similar positions in these orchestras.
The only safeguard in place is the declaration of interest and recusal from decision making.

Additionally, the expenditure report provided by the MNPO advisory board did not include a breakdown of the nature of expenditure nor were invoices provided.

As a result, the AGSA were unable to confirm what the amount was used for.

4.1.1 DSAC HUMAN RESOURCES OVERVIEW8 In its 2022/23 Annual Report, the Department indicates that its has 712 posts on the approved establishment.
In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee.

Therefore, the vacancy rate of 20.5 per cent reflects the percentage of posts that are not filled.

8 DSAC, Annual Report 2023 (Pretoria: DSAC, 2023), pp.117-153.

21 248 The Department experienced a staff turnover rate of 5.6 per cent in the 2022/23 financial year, which was due to natural attrition and 40 per cent was due to resignations.
The Department was not able to maintain a vacancy rate of less than 10 per cent.

The vacancy rate was 19.7 per cent as at 31 March 2023.The Department advertised 50 positions in November 2022 and at the time of finalising the Annual Report have started with shortlisting and interviews for some.

The Department did not achieve the set target of 50 per cent for women appointed at senior management service (SMS level).

The representation of women at SMS was 45.3 per cent as at 31 March 2023.
This remains unchanged from the last financial year.

The percentage of people with disabilities as at 31 March 2022 was 2.42 per cent.

This also remains unchanged the last financial year.

The submission rate of performance agreements for the 2022/23 financial year was 98.5 per cent for salary level 1-12 and 96.0 per cent for the senior management service.

For the salary level 1-12, this is an improvement from the 90 per cent submission rate in 2021/22.
Out of 65 SMS members, only the Director-General (DG) did not conclude the performance agreement by the deadline of 31 May 2022.

The Director-General was still negotiating the content of his performance agreement with the executing authority on 31 May 2022.

His employment contract eventually expired on 31 August 2022.

A total of eight disciplinary hearings were finalised by the end of the 2022/23 financial year.
One resulted corrective counselling; four written warnings and one final written warning were issued; one employee was dismissed; and one employee was found not guilty.

There were no cases of disciplinary action initiated for the period under review.

This is a reduction in the number of incidents compared to the 2021/22 financial year, when one incident was reported.

4.2 Non-financial performance The Department planned to implement and achieve 46 performance targets in the 2022/23 financial year.
At the end of the period under review, 40 out of 46 (87 per cent) of the planned targets were achieved and six out of 45 (13 per cent) were not achieved.

This is an improvement from the 2021/22 financial year when the success rate for the implementation of targets was 76 per cent (34 out of 45).

22 249 4.2.1 Overview of overall programme performance The Department’s Programmes, with their related achievement against the performance targets for the 2022/23 financial year, are shown in Table 6.
Table 6: The Department’s programme performance for the 2022/23 financial year Programme APP Targets 2022/23 Achieved Not Achieved % Achieved % Budget Spent 1 2 5 9 Sport 6 11 83% 82% 1: Administration 2: Recreation Development and Promotion Recreation Development and Sport Promotion 3: Arts Culture Promotion and Development 4: Heritage Promotion and Preservation Total Source: DSAC, Briefing on the 2022/23 Annual Report (Presentation to the Committee, 17 October 2023).
100% 87% 84% and 40 10 19 10 46 16 6 3 0 99.0% 98.9% 98.9% 97.1% 99.5% Programme 1: Administration Five out of six planned targets were achieved.

The following target was not achieved: • Number of services modernised (processes automated) The Department failed to achieve the target which sought to modernise two services and achieved only 50 per cent.

The development of the Database for the Sport, Arts and Culture.was completed.

The second one planned was a Public Entities Reporting System.
This was not achieved as there was no response to the advertised tender.

The tender followed an unsuccessful attempt of incorporating the project in a State Information Technology Agency (SITA) transversal system, recommended by the National Treasury.

Noteworthy achievements include: • Percentage of interns enrolled against funded posts: 6.09 per cent (35/574) against a planned target of five (5) per cent of interns were enrolled against funded posts in the 2022/23 financial year.
• Percentage of councils/boards that are fully constituted: All boards/councils (28) were fully constituted during the period under review.

23 250 Programme 2: Recreation Development and Sport Promotion Recreation Development and Sport Promotion Out of the eleven targets planned, nine were achieved.
The two targets not achieved are: • Percentage of National Federations meeting 50 per cent or more of all prescribed Charter Transformation targets This target was not achieved even though 16 out of 19 National Federations submitted their data sheets, they could not be assessed; as such, none of them could be declared as having met 50 per cent or more of all prescribed charter transformation targets.
The transformation status could not be assessed due to late or non-submission of datasheets by the National Federations.

Three National Federations, namely: Chess SA, Basketball SA and South African Football Association (SAFA), were outstanding at the end of the financial year.
• Number of heritage legacy facilities (including the Resistance and Liberation Heritage Route [RLHR] sites) developed and/or maintain to transform the national heritage landscape The planned target for this indicator was three heritage legacy facilities.

However, only one facility, the Dr JL Dube Amphitheatre, was developed and/or maintained to transform the national heritage landscape.
The Environmental Impact Assessment (EIA) for the Enyokeni (Isibhubhu) Cultural Arena was not approved pending further engagements with traditional leadership in KwaZulu-Natal Province.

In the meeting with the Committee, the Department indicated that engagements with the traditional leadership had indeed taken place post the finalisation and tabling of the Annual Report.
At the Sarah Baartman Centre of Remembrance, the contractor terminated a contract and vacated site in July 2021 due to contractual disputes with the implementing agent, i.e.

DPWI.

Selected achievements for this programme include: • Number of athletes supported by sports academies A total of 5 289 (against a planned target of 3 700) athletes were supported by sports academies.

This is an overachievement of 1 589 athletes supported.
The athletes that come through to the district and provincial academies are emerging to high performance.

Therefore, when the need arises for athletes to improve their performance, they seek assistance from the academies and academies respond as required.

Also, 24 251 because of their higher targets, some provinces were able to contribute more to the national achievement against this target.
• Number of learners in the National School Sport Championship per year Against the planned target of 5 000, 5 204 learners participated in the National School Sport Championship.

This overachievement of 204 learners is the result of added efforts to support the programme in the fourth quarter of 2022/23.
• Number of municipalities provided with technical and/ or management support during construction A total of 62 municipalities against a planned target of 50 municipalities were provided with technical and/or management support during construction.

Apart from supporting municipalities that were allocated Municipal Infrastructure Grant (MIG) support in 2022/23, the Department also supported municipalities whose projects started in the previous years but were not completed.
As planned, the support to municipalities ran throughout the construction cycle, because the Department’s support is meant to enable alignment to the set norms and standards for sport facilities.

Programme 3: Arts and Culture Promotion and Development Three out of the nineteen planned targets were not achieved.

These include: • Number of Gender-Based Violence and Femicide initiatives financially supported While three GBVF initiatives were planned to be financially supported, only two were supported.
The third initiative, namely the Silapha Wellness Intervention Programme, was regarded as not achieved, because of insufficient evidence.

• Number of monitoring reports on the implementation of a social compact for social cohesion and nation building.

Two monitoring reports were planned to be produced during 2022/23 the financial year, but none were produced.
The implementation is dependent on the existence of a Social Compact for social cohesion and nation-building, a project that has not been finalised (signed off) because of dependency on other stakeholders.

• Number of projects through which target groups are supported.

While eight projects were planned for the period under review, the achievement was zero.

Although eight (8) NPOs were appointed, no projects were completed.
The Department provided insight into the deviation and noted that due to departmental processes and decisions, such as the change of funding model mid-year, the 25 252 implementation of projects was delayed resulting in commencement of implementation mid- March 2023.

Consequently, the eight appointed NPOs were unable to complete the projects and report to the Department.
Some of the programme achievements include: • Number of bursaries awarded for the development of qualified language practitioners as per year A total of 312 bursaries, against a planned target of 250 bursaries, were awarded for the development of qualified language practitioners.

An additional 62 students were supported because some universities have a cheaper fee structure than others.
• Number of local and international market access platforms financially supported The planned target of 15 market access platforms was fully achieved.

• Number of Moral Regeneration Movement Projects financially supported While the attainment of this target has been problematic in previous financial years, in 2022/23 all five planned moral regeneration movement projects were financially supported.
• Number of projects in the creative industry supported through the Mzansi Golden Economy programme Against a planned target of 67 projects, a total of 86 projects in the creative industry were supported through the MGE programme.

This resulted from the high number of applications received and subsequently approved by the Department.

Programme 4: Heritage Promotion and Preservation All ten planned targets were achieved.
The following selected highlights for this programme include: • Number of students awarded with heritage bursaries The planned target of awarding 45 heritage bursaries was fully achieved.

• Number of Progress reports on Resistance and Liberation Heritage Route Sites The two planned annual progress reports were developed.

• Number of libraries financially supported per year.

The planned target was 29 libraries supported.


An additional two projects were financially supported from the roll-over funding of 2021/22 financial year, bringing the total achievement to 31 libraries supported in the period under review.

26 253 5.
26 253 5.

OVERVIEW AND ASSESSMENT OF THE FINANCIAL AND NON- FINANCIAL PERFORMANCE FOR THE FIRST QUARTER OF THE 2023/24 FINANCIAL YEAR, 01 APRIL TO 30 JUNE 2023 This section provides a comparison between the DSAC’s planned targets in its APP against its performance set out in its first quarter report for the 2023/24 financial year.

The information on financial performance is extracted from the report by National Treasury to the Standing Committee on Appropriations.
5.1 Financial performance The appropriation for the 2023/24 financial year was R6.36 billion.

By the end of the first quarter, the Department had spent R1.43 billion (22.4 per cent) of the available budget.

This is R229.5 million or 13.9 per cent lower that the projection of R1.66 billion.
Slow spending was mainly on Goods and services and Transfers and subsidies in Programme 1: Administration and in Programme 2: Recreation Development and Sport Promotion and Programme 3: Arts and Culture Promotion and Development, respectively.
Table 7: 2023/24 First Quarter Expenditure by Programme Programme (R’000) Available budget Year-to-date Q1 Projected expenditure Q1 Actual expenditure % Budget Available % Variance from projected expenditure 8.8% 17.3% 1 791.2 126.4 275.4 115.3 227.7 74.6% 84.3% 454.7 1 448.9 1.

Administration 2.

Recreation Development and Sport Promotion 3.

Arts and Culture Promotion and Development 4.


Promotion Preservation 77.6% Total Source: National Treasury, Report to the Standing Committee on Appropriations: 2023/24 1st Quarter Expenditure Heritage and 2 662.9 1 426.9 1 656.4 6 357.7 13.9% 23.0% 70.0% 79.5% 698.5 537.9 556.0 546.0 1.8% Report (Pretoria, National Treasury, 2023).

27 254 5.1.1 Expenditure analysis per programme Programme 1: Administration The available budget for this programme is R454.7 million.
By the end of the first quarter, the Department spent R155.3 million against a projected expenditure of R126.4 million.

Spending was lower than projected by R11.1 million (8.8 per cent) mainly on Goods and services due to lower than projected invoices for marketing activities for Freedom Day and Africa Month celebrations and lower than projected invoices for municipal service charges by the Department of Public Works and Infrastructure (DPWI), which is based on actual usage.
The lower than projected spending was also due to delays of appointing a service provider to develop DSAC’s website and intranet.

Programme 2: Recreation Development and Sport Promotion Programme 2 has an available budget of R1.45 billion.

Expenditure at the end of the first quarter was R227.7 million against projected expenditure of R275.4 million.

Spending was lower than projected by R47.8 million (17.3 per cent) mainly on Transfers and subsidies and Payment for capital assets.
The slow spending under Transfers and subsidies was due to withheld tranche payments to the Sport Trust for operations, and to the South African State Theatre (SAST), South African Library for the Blind (SALB), South African Heritage Resource Agency (SAHRA), ATM for capital projects due to non‐compliance with the Department’s transfer policy.
The transfer for the Sarah Baartman Museum Exhibition Planner was not processed due to disputes between project managers at the University of Cape Town (UCT) which resulted in revisions to the implementation plan on the development of the research report.

This delayed the submission of invoices by UCT for the completed research report and concept document.
The slow spending under Payment for capital assets was due to delays in the finalisation of the implementation of the National Archives facilities management contract.

The Department is also awaiting invoices from the project manager on work done on the Winnie Madikizela Mandela Clinic project.

Programme 3: Arts and Culture Promotion and Development This programme has an available budget of R1.79 billion.

Projected expenditure for the first quarter was R698.5 million.
The Department however spent R537.9 million during the period under review.

Spending was thus lower than projected by R160.6 million (23 per cent) mainly on Transfers and subsidies.

This was mainly due to transfers to the NFVF for the implementation of the Presidential Employment Stimulus Programme (PESP) not being made 28 255 due to the adjudication for the projects being completed late.

This has been scheduled for August.


The slow spending was also due to the non‐submission of audited Annual Financial Statements by the University of Kwa‐Zulu Natal, North West University and Free State University for the implementation of Human Language Technologies projects.

Delayed invoicing by Nelson Mandela University, the South African Cultural Observatory (SACO), and the late finalisation of the adjudication of Arts and Social development projects also contributed to slow spending.
Programme 4: Heritage Promotion and Preservation Programme 4 was appropriated a total budget of R2.66 billion at the beginning of the financial year.

Projected spending for the first quarter was R556.0 million while the actual expenditure by the end of the first quarter was R546.0 million.

The lower than projected spending by R10 million (1.8 per cent) was mainly on Transfers and subsidies and Compensation of employees.
The slow spending on Transfers and subsidies was mainly due to the withholding of transfers due to non‐submission of required documentation by universities for the implementation of the heritage bursaries as well as delays with the appointment of a service provider to produce five books on the five selected living human treasures.

The lower than projected spending under Compensation of employees is mainly due to vacant posts at different levels.
5.1.2 Expenditure by economic classification In terms of economic classification, the largest expenditure item in the first quarter was Transfers and subsidies followed by Goods and services; and Compensation of employees.
Table 8: 2023/24 First Quarter Expenditure by Economic Classification (R’000) Available budget Q1 Projected expenditure Year-to-date Q1 Actual expenditure % Variance from projected expenditure % Budget Available Economic Classification Current Payments Compensation of employees Goods and Services 999.0 385.3 613.7 257.8 237.3 8.0% 76.2% 96.6 91.3 5.4% 76.3% 161.3 146.0 9.5% 76.2% 29 256 (R’000) Available budget Q1 Projected expenditure Year-to-date Q1 Actual expenditure % Variance from projected expenditure % Budget Available 0.0 0.0 0.0 5 027.7 Interest and rent on land Transfers and subsidies Payments for capital assets Payment of financial - assets Total 77.6% Source: National Treasury, Report to the Standing Committee on Appropriations: 2023/24 1st Quarter Expenditure 0.0 1 656.4 0.0 1 426.9 0.0 6 357.7 - 13.9% 1 187.8 1 393.9 61.1% 99.4% 14.8% 76.6% 286.0 1.8 4.7 - - Report (Pretoria: National Treasury, 2023).
5.2 Non-financial performance The Department planned to implement 19 performance targets during the first quarter reporting period.

Eighteen (95 per cent) of the planned targets were achieved.
Table 9: 2023/24 First Quarter Programme Performance Programme APP Targets 2023/24 Achieved Not Achieved % Achieved 2 3 1 1: Administration 2: Recreation Development and Sport Promotion Recreation Development and Sport Promotion 3: Arts and Culture Promotion and Development 4: Preservation Total Source: DSAC, First Quarter Performance Report (Presentation to the Committee, 10 October 2023).

Promotion Heritage 6 19 6 18 0 1 and 0 5 5 0 5 5 67% 100% 100% 100% 95% 6.
PUBLIC ENTITIES AND SPORT AND RECREATION BODIES OF THE DEPARTMENT OF SPORT, ARTS AND CULTURE The Committee considered the 2022/23 annual reports for selected entities reporting to the Department.

These include the SAHRA, the PanSALB, ASA and the SAIDS.

The section of 30 257 the report provides an overview assessment of the service delivery performance for each of these entities.
6.1 South African Heritage Resources Agency SAHRA is an agency of the Department of Sport, Arts and Culture; and established in terms of the National Heritage Resources Act (No.

25 of 1999).

SAHRA is a schedule 3A public entity as defined in the PFMA.

It is responsible for the identification, conservation, protection, and promotion of South Africa’s heritage resources for the greater good of our society and humanity.
In doing this, SAHRA contributes to Outcome 14 of the NDP which outlines the national strategy for social cohesion and nation-building.

6.1.1 Overview and assessment of SAHRA’s 2022/23 service delivery performance9 SAHRA has five budget programmes, Administration and Governance; Strategic Coordination; Public Engagement; Business Development and Transformation; and Economic Empowerment.

The entity achieved 100 per cent against the 2022/23 annual performance plan targets.
Selected key achievements for the 2022/23 financial year include: • The finalisation of the Heritage Resources Management Coordination Plan (HRMCP), comprehensive and forward-looking plan for the period 2023-2028.

This plan is a critical step towards ensuring that those who should be playing a role in effective management of our heritage resources actively participate in matters concerning identification, protection, and conservation of national heritage resources.
• A total of 24 knowledge dissemination activities with 12 additional activities from the planned 12 activities conducted during the 2022/23 financial year.

These activities stem from one of SAHRA’s which is to promote and regulate heritage by disseminating knowledge at hosted or participatory events.
• The assessment 12 sites for grading and declared nine heritage resources, including the serial assessment of 11 kramats and the serial declaration of eight sites at District Six in fulfilment of SAHRA’s mandate of inclusive identification, conservation, promotion, and management of heritage resources.

9 South African Heritage Resources Agency SAHRA 2022/23 Annual Report (Presentation to the Committee, 11 October 2023).
31 258 6.1.2 Overview and assessment of SAHRA’s 2022/23 budget and expenditure For the 2022/23 financial year, SAHRA’s total revenue was R75.7 million, which includes a transfer of R62.8 million from the Department.

The balance is comprised of, amongst others, interest; rent revenue generated by properties owned by SAHRA; permit fees and other income; and realisation of deferred income.

The entity noted that due to budgetary constraints, it has significantly reduced its expenditure.
The Department’s allocation to SAHRA in 2021/22 was R58.7 million.

Employee costs for 2022/23 amounted to R43.4 million, i.e.

57.3 per cent of the total revenue and 69.1 per cent of the Department’s allocation.
The entity noted that “the decrease in Government subsidies over recent few years exacerbated by the advent of COVID-19 and overall Government decrease of income on the fiscus with the added expected MTEF budget cuts, it is projected that personnel expenditure will increase to 80 per cent of the total budget allocation (excluding project funding) in the 2024/25 financial year only magnifies the challenges brought about due to the underfunding of the entity’s mandate”.10 It should also be noted that no employee received performance bonuses in the period under review.
The Committee was briefed on labour challenges regarding salary increases and SAHRA’s interventions.

With the assistance of the Department, SAHRA was able to identify savings and has managed to offer staff a three per cent salary increase and a proposed three per cent once-off bonus.

At the end of the financial year, the entity’s operating surplus amounted to R5.2 million.

The entity’s total net assets amounted to R137.8 million.
6.1.3 Irregular and fruitless and wasteful expenditure11 There was no opening balance for irregular expenditure at the beginning of the 2022/23 financial year and nothing further was incurred in the period under review.

SAHRA however had an opening balance of R140 000 for fruitless and wasteful expenditure at the beginning of the period under review.
The entity incurred R65 000 during the 2022/23 financial year, and R63 000 was removed after SAHRA had received an abatement to this 10 SAHRA 2022/23 Annual Report (Cape Town: SAHRA 2023), p.73.

11 SAHRA 2022/23 Annual Report (Cape Town: SAHRA 2023), pp.85-88.

32 259 amount.

The closing balance for fruitless and wasteful expenditure at the end of the 2022/23 financial year is R142 000.
6.1.4 2022/23 Audit Outcomes SAHRA’s audit opinion remained unchanged at unqualified (clean) for the 2021/22 and 2022/23 financial years.

It should be noted that SAHRA has improved on its audit outcome of unqualified with findings achieved in 2020/21.

6.2 Pan South African Language Board The PanSALB is a constitutional institution as defined by the PFMA.

It which derives its mandate firstly from section 6(5) of the Constitution of the Republic of South Africa and secondly from PanSALB Act (No.
59 of 1995, as amended by the PanSALB Amendment Act, No.

10 of 1999).

The Board, established by the PanSALB Act as a juristic person, has the responsibility of language promotion, the defence of linguistic rights and creating conditions for the development and equal use of all languages used in South Africa.
PanSALB, while not a Chapter 9 institution, is regarded as a state institution supporting democracy along with structures such as the Constitutional Court, the Financial and Fiscal Commission, and the National Youth Development Agency.

6.2.1 Overview and assessment of PanSALB’s 2022/23 service delivery performance PanSALB works to fulfil its mandate across two budget programmes, namely Programme 1: Administration and Institutional Support; and Programme 2: Language Use, Development and Equitability.
During the financial year 2022/23 PanSALB had 25 targets and managed to achieve 16 (64 per cent) of the set target whereas 9 (36 per cent) of the annual targets were not achieved.

Programme 1 had seven targets for the financial year of which six (86 per cent) were achieved and one (14 per cent ) was not achieved.

Programme 2 had 18 targets, of which 10 (56 per cent) were achieved and eight (44 per cent) were not achieved during the financial year.
Selected achievements for the entity during the period under review include:12 12 Pan South African Language Board Briefing by PanSALB to the Portfolio Committee on Sport, Arts and Culture (Presentation to the Committee, 11 October 2023).

33 260 • A total of 12 cases related to linguistic human rights attended to and resolved.

The finalised report was tabled in Parliament after the conclusion of the 2022/23 financial year for noting by the Committee.
• A linguistic human rights dialogue that focused on the use of official languages within the South African Justice System was conducted.

• The vacancy rate as of 31 March 2023 was at 13 per cent measured against the target of 20 per cent or below which is attributed to a recruitment drive following the approval of the new organisational structure.
• PanSALB has initiated the establishment of Khoi and San community language schools as a pilot project with the aim to improve the teaching and learning of Nama in the Eastern Cape, Western Cape, Gauteng, and Northern Cape, as well as Khwedam and !Xuntali in the Northern Cape.

At the end of the financial year, around 12 community schools were in the early stages of operation.
6.2.2 Overview and assessment of PanSALB’s 2022/23 budget and expenditure13 For the period under review, PanSALB had a total revenue of R126.7 million.

The primary source of revenue for PanSALB is the Government grant, transferred via the Department, which amounted to R123.1 million for the 2022/23 financial year (2021/22: R120.9 million).

This equates to 97.2 per cent of the institution’s total revenue.
Additional revenue of R198 000 was received from the National and Provincial Governments to administer the disbursement of COVID-19 relief funding and promoting the PanSALB mandate within the Mpumalanga province.

Interest received from bank deposits amounted to R3.3 million.

Treasury approved a roll-over of funds of R57.3 million which was utilised to execute Information and Communication Technology (ICT) infrastructure, language promotion projects and job creation.
PanSALB recorded expenditure of R149.3 million in the 2022/23 financial year (2021/22: R148.5 million) which represents 82.7 per cent of the MTEF budget of R123.1 million and the approved roll over funds of R57.3 million.

Transfer to National Lexicography Units of R27.3 million was paid in 2022/23 (2021/22: R34.5 million).

The total compensation of employees increased from R51.9 million in 2021/22 to R61.0 million in 2022/23.
This represents an 13 PanSALB Annual Report 2022/23 (Pretoria: PanSALB, 2023), pp.34.

34 261 increase of 17.6 per cent.

Expenditure on personnel thus amounted to 49.6 per cent of the total DSAC transfer.

At the end of the financial year, the institution’s accumulated surplus amounted to R44.2 million.
In its 2022/23 annual report, the PanSALB notes that its management has “embarked on a strategic planning exercise and developed a fundraising strategy, which includes identifying new avenues for generating additional revenue”.14 6.2.3 Irregular and fruitless and wasteful expenditure15 In respect of irregular expenditure, PanSALB had an opening balance of R58.7 million at the beginning of the 2022/23 financial year.

An additional R2.3 million was added during the period under review.
A total of R60.8 million was under assessment at the end of the financial year.

However, no irregular expenditure was condoned, removed, or written off leaving a closing balance of R61.0 million at the end of the financial year.

6.2.4 2022/23 Audit Outcomes Given that the entity has had a long history of dysfunction and instability it is noteworthy that PanSALB’s performance appears to be on an upward trajectory.
The entity has moved from a qualified audit opinion in 2018/19 and has, since then put measures in place to improve this outcome with PanSALB achieving an unqualified (clean) audit opinion in 2021/22.

This is however regressed in 2022/23 to an unqualified with findings audit opinion.
6.3 Athletics South Africa Athletics South Africa (ASA) is the national governing body (national federation) for the sport of athletics (including track and field, cross country, road running and race walking) in South Africa, recognised by the World Athletics, and also a member of Confederation of African Athletics.

The organisation reports to the South African Sports Confederation and Olympic Committee (SASCOC).

ASA falls under Programme 2 of the Department as a Departmental agency.
In 2022, ASA reported that it comprises 17 provincial associations (with the nine 14 PanSALB Annual Report 2022/23 (Pretoria: PanSALB, 2023), p.155.

15 PanSALB, Annual Report 2022/23 (Pretoria: PanSALB, 2023), pp.92-94.

35 262 provinces), 1 012 athletics clubs, 304 000 registered athletes and approximately 500 000 unregistered athletes.
The organisation is controlled by a board of directors led by a president.16 From its inception in 1992, ASA focused on four main objectives:17 • To unify all athletics in South Africa; • To develop the sport of athletics in South Africa, particularly at grassroots level; • To facilitate the participation of previously disadvantaged communities in athletics; and • To prepare athletes for participation in international events.
6.3.1 Overview and assessment of ASA’s 2022/23 service delivery performance The ASA, as were all other sporting federations were severely affected by the COVID-19 pandemic and the restrictions places on the sector as a result of the series of lockdowns.

Federations have however returned to play and with the possibility to host and participate major sporting events resumed.
The following events flagged as highlights for 2023:18 • The SA National Championships (Juniors and Seniors) held in Germiston and Potchefstroom in March and April 2023, respectively; • Competed at the Budapest World Athletics Championships between 19 and 27 August 2023.

South Africa however did not medal at this event; • Competed at the 2023 Africa under-18 and under-20 Championships in Athletics hosted by Zambia between 29 April and 03 May 2023.
South Africa placed first winning a total of 65 medals; • Competed in the World Athletics Road Running Championships in Riga, Latvia from 28 September to 01 October 2023, and attained an overall position of third place with one bronze medal.

6.3.2 Overview and assessment of ASA’s 2022/23 budget and expenditure During the 2022/23 financial year, an amount of R 6.0 million was transferred to ASA by the Department.
An amount of R 2.0 million was set aside for administration, while the remaining R4.0 million was budgeted for programmes and projects.

On the matter of higher than usual administrative costs for federations, the Department in its presentation to the Committee, noted 16 Athletics South Africa, 2022/2023 Annual Performance Plan (Presentation to the Committee, 19 April 2022).

17 Ibid.

18 DSAC, Overview Briefing: ASA Federation (Presentation to the Committee, 13 October 2023).
36 263 that this was accepted during the COVID-19 pandemic.

This was to ensure that federations were not severely affected by the decreases in their revenue streams.

The 2023/24 financial year is the last year that such high administrative costs are approved as most of the funding should be directed towards programme implementation.

This was communicated to all federations in March 2023.
This flexibility will therefore lapse from 01 April 2024 onwards.19 For the period under review, the ASA had a total revenue of R30.4 million (2021: R30.1 million) which in addition to the Government transfer, in the main includes revenue derived from SuperSport broadcasting rights (R11.3 million); membership income (R5.7 million); and sponsorship income (R3.4 million).
In its review of financial results and activities, the ASA noted that it had successfully secured broadcasting rights with SuperSport for a 4-year term.

They had also experienced growth in membership and increase in participation which resulted in an increase in licenses issued.

ASA recorded operating expenses of R34.9 million for the 2022 financial year (2021: R28.9 million).
The major expenses were that of event expenses at R18.7 million (53.6 per cent); an amount of R4.2 million (12.0 per cent) ring-fenced for legal expenses; salaries and wages at R3.7 million (10.5 per cent); and marketing, media and consulting at R2.7 million (8.3 per cent).

The federation recorded a total deficit of R4.4 million (2021: R1.5 million surplus).

The deficit resulted from the R6.0 million grant that was delayed and paid in early January 2023.
6.3.3 Progress and challenges20 The ASA indicated that is has made progress in several areas including an increase in national teams participating internationally; increased domination of youth and junior teams at an international level; and more women are participating in athletics.
They however also highlighted the challenges faced by the federation which includes a lack of equipment and training facilities; the matter of pressure on living costs faced by professional athletes as they need to be in training on a full-time basis; and the overwhelming demands of training camp and medical and recovery/rehabilitee costs related to sports injuries.

19 Ibid.

20 ASA, Athletics South Africa’s Presentation (Presentation to the Committee, 13 October 2023).
37 264 The Federation also indicated that it will continue to focus on a number of areas to increase their rate of success, including: • Strategic planning; • Coaching and athletes support; • Competition exposure; and • Collaboration with stakeholders.

6.4 South African Institute for Drug-Free Sport The South African Institute for Drug-Free Sport (SAIDS) is a public entity established by the SAIDS Act (No.

14 of 1997, as amended by the SAIDS Amendment Act No.

25 of 2006).
25 of 2006).

Its mandate is to promote the participation in sport free from the use of prohibited substances or methods intended to artificially enhance performance, thereby rendering impermissible doping practices, which are contrary to the principles of fair play and medical ethics, in the interest of the health and well-being of sportspersons; and to provide for matters connected therewith.
As a regulatory agency, SAIDS also provide technical obligations for the country to UNESCO; the WADA; and the African Union.

SAIDS must ensure compliance at the international level through adhering to the UNESCO Convention Against Doping in Sport; the WADA Code (“Code”); and the International Standardization Organization (ISO) 9001, which is the internationally recognised standard for Quality Management Systems (QMS) and pertains to the scientific rigor required in the drug testing programme.
The performance environment of SAIDS is also influenced by the independent WADA accredited laboratory in South Africa, the SA Doping Control Laboratory in Bloemfontein, which is the only such laboratory on the African continent.
6.4.1 Overview and assessment of SAID’s 2022/23 service delivery performance The following are selected achievements for the 2022/23 financial year: • Co-hosted the African Anti-Doping Education Workshop February 2023 in Johannesburg; • Hosted 194 in-person and virtual anti-doping education events across the country; and • Analysed 3194 urine and blood samples.

One of the challenges SAIDS is currently facing is the matter of compliance with the revised WADA Code which came into force in 2021.
The 2021 Code includes the new and revised 38 265 international standards that anti-doping agencies must comply with.

These international standards are the International Standard for Education; the International Standard for Testing and Investigations; and the International Standard for Results Management.

The WADA requires all member countries to countries to align their national anti-doping acts/policies with the revised Code.
The consequences of non-compliance include not being awarded the right to host nor fly its flag regional, continental and World Championships, and Events organised by Major Event Organizations, until SAIDS is reinstated.

An additional consequence is that the non-complaint member country’s flag may not be flown at Olympic Games and Paralympic Games.
During the briefing to the Committee, the Department and SAIDS provided an in-depth overview of the matter of the potential sanctioning of South Africa (through SAIDS) from WADA.

In November 2022, SAIDS received a warning from WADA notifying the entity that its legislation (as amended by the Act No.

25 of 2006) is outdated and must be aligned to the revised Code to avoid being sanctioned.
To summarise the interventions, it is necessary to state that while SAIDS and DSAC are actively addressing the challenge of the outdated legislation.
The following important points are important to consider:21 • South Africa received feedback from WADA noting that the latest draft of the amended legislation appears to be in line with the Code and International Standards (25 September 2023); • The Department submitted the final draft to the Office of the Chief State Law Advisor (25 September 2023) and the Department’s Legal Services are in contact with this and other relevant stakeholders to fast track the promulgation of the SAIDS Bill; • The Department submitted a Cabinet memo for consideration in Cabinet at its meeting of 04 October 2023.
The Minister presented the SAIDS amendment bill which was subsequently approved by Cabinet and will be tabled in Parliament.

6.4.2 Overview and assessment of SAID’s 2022/23 budget and expenditure For the 2022/23 financial year, the entity had a total revenue of R35.1 million (2021/22: R30.1 million).

The total revenue is largely comprised of the DSAC grant of R29.2 million (2021/22: 21 DSAC, (2023).

Overview Presentation: SAIDS (Presentation to the Committee, 13 October 2023).

39 266 R28.1 million).


This grant thus represents 83.1 per cent of the entity’s total revenue in 2022/23.

Other major sources of revenue for the 2022/23 financial year included a grant received from the National Lotteries Commission (R746 000) and doping control sales (R4.2 million).

SAIDS recorded total expenditure of R44.2 million in the 2022/23 financial year (2021/22: R27.0 million).

The total expenses relating to doping control amounted to R22.0 million (2021/22: R11.5 million).
Staffing costs for the period under review amounted to R9.2 million (2021/22: R8.7 million).

This represents an increase of 5.7 per cent.

Expenditure on staff in 2022/23 thus amounted to 31.5 per cent of the total DSAC transfer.

The third biggest contributor to the total expenditure was the SAIDS anti-doping education programme.

The expenditure relating to this programme was R4.1 million in the period under review (2021/22: R532 000).
At the end of the financial year, the entity recorded a deficit of R9.1 million (2021/22: R3.9 million surplus).

The main driving factors for this deficit include the full resumption of sports post the COVID-19 pandemic; the increased demand for testing and anti-doping education; and the utilisation of the entity’s retained surplus.

The surplus of R11.5 million emanates from underspending in 2020/21 and 2021/22 due to the COVID-19 pandemic.

The entity declared the surplus to National Treasury.
SAIDS applied for the surplus to be retained and National Treasury approved the retention and utilisation of the surplus funds.

6.4.3 Irregular and fruitless and wasteful expenditure At the beginning of the 2022/23 financial year, SAIDS had an opening balance for irregular expenditure amounting to R6.0 million.

An additional R12.6 million was added to the register in the period under review.
The 2022/23 financial statements indicate that R10.3 million was under assessment and R2.3 million under investigation.

The closing balance at the end of the 2022/23 financial year was R18.6 million.

6.4.4 2022/23 Audit Outcomes SAIDS achieved a clean audit opinion for the 2022/23 financial year, which remains unchanged since 2019/20.

40 267 7.
40 267 7.

ISSUES RAISED DURING DELIBERATIONS The following concerns were raised in relation to the performance of the Department and its entities during the Committee’s deliberations: 7.1 Leadership instability and vacancies The Committee noted with concern that while the contract for the Department’s Director- General ended in August 2022, the post still remains vacant even there have been efforts to fill the position.
The Department’s vacancy rate remains high and at the end of the 2022/23 financial year was recorded at 20.5 per cent due to internal promotions resulting in vacant positions that could not be filled before the end of the period under review.

The Committee also questioned when ASA will appoint a permanent CEO as having an acting CEO at the helm exposes the federation to leadership instability.
7.2 Expenditure rate The Committee commended the Department on spending 98.9 per cent of the total allocated budget but, as noted earlier, is concerned that R32.4 million out of R68.8 million that was underspent (40 per cent) stems from vacant positions that were not filled.

7.3 Audit outcomes for the Sport, Arts and Culture portfolio The Committee notes with concern the slight regression in the overall audit outcomes for the portfolio.
It further is concerned the basis for two of the three entities that received qualified audit opinions with findings because of repeat findings.

The annual financial statements for both the National Library of South Africa and Iziko Museums of South Africa were qualified on the heritage assets not being accounted for properly.

The regression in audit opinion from unqualified with findings in 2021/22 to qualified with findings in 2022/23 for Freedom Park is also worrying.
7.4 Late submission of annual financial statements In its engagement with the AGSA, the Committee was informed that the most recently declared cultural institution and entity of the Department, the Mandela Bay Theatre Complex, missed the deadline of submission of annual financial statements for auditing.

This is the first time that the entity is being audited by the AGSA.
The late submission resulted in a regression for the portfolio for the submission of financial statements by the legislated date from 100 per cent in 2021/22 to 97 per cent in 2022/23.

41 268 7.5 Irregular expenditure and consequence management The Committee notes that there has been a decrease in irregular expenditure for the period under review.

However, the Committee also expressed concern yet again with the delays in the implementation of consequence management.
While some investigations are underway, the AGSA flagged that the closing balance of irregular expenditure continues to increase across the portfolio.

At the end of the 2022/23 financial year the balance was R1.17 billion, with the Department contributing R450 million to this balance.

Investigations into irregular expenditure amounting to R23.7 million incurred by the Department were not performed as required by the PFMA.
7.6 Implementation of the Revised White Paper on Arts, Culture and Heritage In the briefing by SAHRA on its Annual Report to the Committee, SAHRA noted that it was still unclear as to how the imminent merger with the NHC will affect the entities.

7.7 Infrastructure projects The Committee expressed dissatisfaction with the protracted nature of the implementation of certain infrastructure projects, including the Enyokeni Cultural Arena and the Sarah Baartman Centre of Remembrance.
7.8 Gender representivity in councils The Committee questioned the composition of the council of SAHRA given that the council only has one female member.

7.9 Transformation in sport The Committee expressed its ongoing concern on the matter of transformation in sport.

The outstanding Eminent Persons Group (EPG) report will assist the Committee in ensuring that all facets of sports in South Africa is transforming.
7.10 Development and promotion of sport in townships and rural areas In its engagement with ASA, the Committee underscored its concern regarding the promotion and development of sport in townships and rural areas.

This concern also encompasses the ability to access sporting facilities, the affordability of club membership fees, support for coaches and athletes, and making scholarships to talented athletes from these communities.
42 269 7.11 South African Cultural Observatory research The Committee expressed its appreciation for the research conducted and reports produced by SACO.

It further welcomed the expansion of SACO’s research mandate to include sport.

7.12 Outstanding policies and legislation The Committee noted with concern the matter of the outdated SAIDS legislation and the potential impact of non-compliance with the WADA Code.
Additionally, the Committee questioned the progress made on the development of policies such as the Women in Sport Policy, noting that the review of public comments on the policy was in progress at the end of the 2022/23 financial year.

7.13 Governance of PanSALB The Committee noted with appreciation the work done by the management and PanSALB Board in turning the institution around.

The term of the current board expires in the 2023/24 financial year.
The Committee welcomed the decision by the Minister to include the Committee in the establishment of the ad hoc committee that will initiate the process that will culminate in the appointment of a new board.

7.14 Inadequate financial allocation to the sector Upon engaging with the entities, the growing outcry of inadequate financial allocation has become more pronounced.
7.15 Mzansi National Philharmonic Orchestra The Committee notes the insight provided by the AGSA on matter of the MNPO which relates to the Memorandum of Understanding which was to facilitate the transfer of ring-fenced funds from the NAC to the newly established orchestra.

8.
8.

COMMITTEE RECOMMENDATIONS The Committee recommends that the Minister of Sport, Arts and Culture consider the following: 8.1 Leadership instability and vacancies The Department to provide the Committee with a comprehensive overview of its recruitment strategy, with specific reference to the Director-General post, by the end of the fourth quarter of 2023/24.

The filling of vacant posts will also further reduce underspending.
43 270 The ASA and the Department should provide the Committee with an update on the matter of filling the CEO vacancy by the end of the 2023/24 financial year.

8.2 Expenditure rate The Department should strive to continue its trajectory of expending its allocated budget to ensure that it implements service delivery.
8.3 Audit outcomes for the Sport, Arts and Culture portfolio The Department should provide the Committee with its action plans and other corrective measures to ensure improvement in the portfolio audit outcomes by the end of the third quarter of 2023/24.

This will allow the Committee to track progress on commitments made and strengthen its oversight and allow for deeper scrutiny of service delivery.
8.4 Late submission of annual financial statements The Department should provide the Committee with an update on the status of the audit for the Mandela Bay Theatre Complex by the end of the third quarter of 2023/24.

8.5 Irregular expenditure and consequence management The Department should strengthen its internal controls as well as its oversight function over its entities to curtail the growing balance of irregular expenditure for the portfolio.
The Committee therefore reiterates its request for a comprehensive overview of the audit action plans for the portfolio by the end of the third quarter of 2023/24.
8.6 Implementation of the Revised White Paper on Arts, Culture and Heritage While the Department is scheduled to provide the Committee with an update on the implementation of the White Paper during the third quarter of 2023/24, the Committee recommends regular reporting on the matter, including what financial allocations have been prioritised and allocation for the project.
8.7 Infrastructure projects The Department should provide a progress report on all infrastructure projects that have been delayed due to various reasons by the end of the third quarter of 2023/24.

44 271 8.8 Gender representivity in councils As far as possible, the matter of gender representivity in councils should be addressed and considered when council members are appointed.
8.9 Transformation in sport Noting the challenges the Department experienced in obtaining the required information from selected sporting federations, the Committee once again calls for the Department to fast-track obtaining the required, outstanding information and to expedite the process of compiling the EPG Report.

The Committee requests further updates on the matter by the end of the third quarter of 2023/24.
The Committee further recommends that the Department redefines the performance indicator which aims to measure the degree to which National Federations have met the prescribed Transformation Charter targets as this will clarify the required level of performance.

8.10 Development and promotion of sport in townships and rural areas The Department and the National Federations should continue to strengthen their efforts to increase participation in sport in marginalised communities.
8.11 South African Cultural Observatory research The Committee recommends that SACO research into the impact on the economy of sport, inclusive of all sport codes to assist the better allocation of funding and resources.

8.12 Outstanding policies and legislation The Department should provide the Committee with an update on the draft amendments that have been passed to the Office of the State Law Advisor.

This update should be submitted before the end of the third quarter of 2023/24.
The Department should provide the Committee with an overview of progress made in relation to policies that have been drafted and in the process of being finalised.

The updated should be submitted by the end of the fourth quarter of 2023/24.

8.13 Governance of PanSALB The Committee recommends that the Department provides an update by the end of the third quarter of 2023/24 on the establishment of the ad hoc committee.
Once established, the 45 272 Department should provide the Committee with the names of the individuals selected to serve on the said committee.

8.14 Mzansi National Philharmonic Orchestra The Committee recommends that the Department provides a progress report on the matter raised by the AGSA in respect of monitoring the implementation of the spending by the MNPO and obtain outstanding reports to confirm if monies were spent in line with the objectives.
This report should be submitted by the end of the third quarter of 2023/24.

The Committee recommends that the Minister of Finance consider the following: 8.15 Inadequate financial allocation to the sector The Department of Sport, Arts and Culture requires additional funding for operational transfers to entities.

The overwhelming majority of the entities have expressed concerns about insufficient budget allocation to implement their legislative mandates.
As per the 2023 ENE, the total expenditure estimate for the Department will decrease to R6.16 billion in 2024/25 followed by an increase to R6.44 billion in 2025/26.

Given the vast mandate of the sector, there is a growing outcry that the allocation to entities is insufficient to ensure a comprehensive approach to the promotion and development of the sector, and the safeguarding of heritage assets.

9.
9.

CONCLUSION The Committee will endeavour to monitor the Department and its entities with respect to the implementation of recommendations made by the AGSA.

The Committee notes with concern that it last conducted physical oversight in June 2021.

Furthermore, the Committee notes that the reservation by the Democratic Alliance.

In conclusion, the Committee urges the Department to heed its recommendations and to implement these expeditiously.

10.
10.

APPRECIATION The Chairperson wished to acknowledge the Members of the Portfolio Committee of Sport, Arts and Culture for being resolute in the role they play in conducting oversight of the work of the Department and its entities and sporting federations.

The Committee noted and valued the cooperation and contributions by the Department and its entities during this process.
The 46 273 Committee also appreciates the support of staff of the Office of the Auditor-General of South Africa as well as its support staff for their assistance in preparing this report.

Report to be considered.

47 274 7.

BUDGET REVIEW AND RECOMMENDATIONS REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2022/23 ANNUAL REPORT OF THE SOUTH AFRICAN POLICE SERVICE (SAPS), DATED 20 OCTOBER 2023.
The Portfolio Committee on Police, having considered the annual financial and service delivery performance of the South African Police Services (SAPS) for the 2022/23 financial year on 11 October 2023, 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).
1 275 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 2022/23 by the Department on 11 October 2023 and also met with the Auditor-General on the audit outcomes on the same date.

The Committee also received briefings from police unions POPCRU and SAPU and stakeholder IPUSA.

Structure of the Report • 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), and key priorities of the Portfolio Committee on Police for the 2022/23 financial year.

• Section 3: Report of the Auditor General of South Africa (AGSA).

This section provides the key audit findings made by the Office of the AGSA.

2 276 • 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: Inputs by police unions and stakeholders.
This section provides a summary of the inputs made by police unions and stakeholders on the 2022/23 SAPS Annual Report.

• Section 7: Committee observations.

This section provides a summary of the observations made by the Committee during the 2022/23 Annual Report hearings.

• Section 8: Recommendations.

This section contains the recommendations made by the Committee.

• Section 9: 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 3 277 • 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 • 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 2022/23 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 seventh State of the Nation Address (SONA) during a Joint Sitting of the National Assembly (NA) and the National Council of Provinces (NCOP) on 09 February 2023.
The key focus areas of the 2023 SONA related to the South African Police Service (SAPS), were additional personnel and funding to the SAPS, establishment of 4 278 specialised policing units to address economic sabotage and related crimes, dedicated units to address specialised crimes such as kidnapping, introduction of evidence-based policing, the capacitation of 10111 call centres and community-orientated policing.
During the 2023 SONA, President Ramaphosa highlighted the following priorities related to the policing sector: Corruption and theft at power stations: The SAPS has established a dedicated team with senior leadership to deal with the pervasive corruption and theft at several power stations that contributed to the poor performance of these stations.

According to the President, intelligence- driven operations at Eskom-related sites have resulted in several arrests.
Regulatory framework for the hemp and cannabis sector: A regulatory framework for a whole plant, all legitimate purposes approach for complimentary medicines, food, cosmetics, and industrial products, aligned to international conventions and best practices, is being finalised by Government, which will be enforced by the SAPS.
Additional police resources: The President announced the strengthening the SAPS to prevent crime, which includes increased visible poling and the setting up specialised teams that will focus on specific types of crime.

To enable these interventions, additional funding will be made available in the 2023/24 budget for the SAPS.

Similar to the previous financial year, a further 10,000 new SAPS personnel will be recruited and trained this year.
Specialised police teams: Specialised police teams are already established to address crimes like kidnapping, extortion and illegal mining.

Economic sabotage and related crimes: Multi-disciplinary Economic Infrastructure Task Teams have been established in 20 identified hotspots.

Cable theft has a detrimental effect on the country’s electricity system, train lines and other public infrastructure.
In December, Government introduced a temporary ban on the export of scrap copper cable and certain metals to disrupt criminal syndicates and enable a new trading system to be put in place.

The President stated that through fighting economic sabotage and organised crime, the country’s infrastructure will be more secure and businesses will be able to operate more freely.
5 279 10111 Call centres: The capacity of 10111 centres will be strengthened to support the proper functioning of the 10111 help line, through partnering with the private sector.

Evidence-based policing: The President announced that the SAPS will use data driven methods (also known as evidence-based policing) in a more sophisticated way to identify and target crime hotspots.
Community involvement in the fight against crime: Functioning Community Policing Forums (CPFs) will enable citizens “to count on the protection of the state”.

Gender-based violence: The fight against gender-based violence and femicide (GBVF) will be intensified through implementation of the National Strategic Plan on GBVF and other measures to promote the empowerment of women.
This should include preventative measures, such as the implementation of new laws on protection orders and society-wide programmes to involve men in tackling patriarchal attitudes and toxic masculinity.

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.

6 280 • 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.

2.5.
Key priorities of the Portfolio Committee on Police During the 2022/23 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; • Panel of Experts Report on Policing and Crowd Management; • Infrastructure and capital works projects; • Gender-based Violence and implementation of the Domestic Violence Act (DVA); • Critical Infrastructure Protection Act Regulations; • Protection of Constitutional Democracy against Terrorist and Related Activities Amendment Act (POCDATARA); • National Policing Plan; • Police Recruitment and Training; 7 281 • • Integrated Crime and Violence Prevention Strategy (ICVPS); Implementation of Zondo Commission Recommendations; • Resourcing of Public Order Policing Units; • IPID Expansion Strategy and Capacitation; and • Underspending on the SAPS budget; • Crime Statistics; and • Petitions.
3.

REPORT OF THE AUDITOR-GENERAL OF SOUTH AFRICA (AGSA) The Department received an unqualified audit with an emphasis of matter and several material findings on performance information, compliance to legislation and internal control deficiencies in 2022/23.

The AG raised an emphasis on an uncertainty relating to the future outcome of exceptional litigation.

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.

This is a repeat finding and was raised as an emphasis of matter in the previous financial year.

At year-end, the SAPS had civil claims to the value of R108.7 billion, which is more that the Department’s total annual budget.

Please see section 4.4 of this paper for more information on civil claims.
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 ending in March 2023: The material findings in respect of the usefulness and reliability of the Visible Policing Programme are as follows: 8 282 Based on audit evidence, the actual achievements for two indicators did not agree to what was reported.
The AG could not determine the actual achievements, but estimated them to be materially less.

Consequently, the targets were not achieved, the under achievements on the targets were more than reported and the achievements against the targets were lower than reported (both repeat findings).

These are: • Number of identifiable stolen/lost SAPS owned firearms recovered; and • Number of stolen/robbed vehicles recovered.
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 reported contact crimes; 2) Percentage reduction in the number of contact crimes against women (18 years and above); 3) Percentage reduction in the number of contact crimes against children (18 years and below); 4) Percentage of identified illegal liquor outlets closed; 5) Percentage reduction in the number of reported contact crimes at the top 30 high contact crime weight stations.
In terms of the percentage reduction in the number of reported contact crimes at the top 30 high contact crime weight stations, the AG stated that an achievement of 5,6% increase in reported contact crime was reported against a target of 8,18% reduction of reported contact crime.

However, some supporting evidence was not provided for auditing; and, where it was, the AG identified material differences between the actual and reported achievements.
Consequently, the achievement might be more or less than reported and was not reliable for determining if the target had been achieved.

In terms of the percentage of identified illegal liquor outlets closed, the AG stated that an achievement of 100% of identified illegal liquor outlets closed was reported against a planned target of 100%.
The calculation of this achievement consist of two components namely the number of identified liquor outlets closed as a percentage of the illegal liquor outlets identified.

Although the AG could verify the reliability of the identified liquor outlets closed, the AG 9 283 could not determine if the number of illegal liquor outlets identified was correct, as adequate supporting evidence was not provided for auditing.
Management indicated that it is impractical to determine the complete population of illegal outlets identified.

Consequently, the overall percentage achievement might be less than reported and was not reliable for determining if the target had been achieved.
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; 2) Percentage of outstanding crime to crime-to-crime DNA investigative leads finalised; 3) Percentage of outstanding crime to person-to-crime DNA investigative leads finalised; 4) Percentage of the outstanding integrated ballistics identification systems investigative leads finalised; 5) Detection rate for crimes against children; and 6) Percentage of outstanding wanted persons already circulated at the tip 30 high contact crime weight stations 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 pre-qualification criteria that were not stipulated and differed from those stipulated in the original invitation for bidding, in contravention of the 2017 Preferential Procurement Regulation 4(1) and 4(2).
• Expenditure management: Effective and appropriate steps were not taken to prevent irregular expenditure 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 Preferential Procurement regulation 9(2) where subcontracting was not stipulated in the bid invitation/ bid documents.
10 284 • Consequence management: The AG was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular expenditure in prior years, as required by section 38(1)(h)(iii) of the PFMA.

This was because investigations into irregular expenditure were not performed.

Disciplinary steps were not taken against some of the officials that had incurred and permitted irregular expenditure as required by section 38(1)(h)(iii) of the PFMA.
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.

4.

FINANCIAL OVERVIEW 4.1.


Appropriation statement The SAPS had a Final Appropriation of R102.55 billion in 2022/23, of which the Department had spent R102.49 billion or 99.9% thus recording underspending of R55.07 million at year- end.

This is a significant improvement compared to the previous two financial years, during which the Department underspent with R878.4 million (2020/21) and R4.07 billion (2021/22).
The Department made significant use of virements and shifts during the fourth quarter of the 2022/23 financial year to achieve its expenditure outcome of 99.9% at year-end.
Although these changes to budget allocations are allowed during the last quarter of the financial year, it falls outside the scope of Parliamentary scrutiny as Parliament only oversees the adjustments made to Departmental budget allocations during the Adjusted Budget period when the Minister of Finance announces, and tables the Adjusted Estimates of National Expenditure (AENE) in October each year.
In this regard, specific note should be taken of the changes made to the budget allocation for buildings and other fixed structures throughout the period under review.

At the start of the 2022/23 financial year, R960.9 million was allocated to buildings and fixed structures.

During 11 285 the appropriations period, the allocation was reduced with R216.6 million through virements and shifts which gave this item an Adjusted Appropriation of R744.1 million.
During the last quarter of the 2022/23 financial year, the allocation was further reduced by R278.0 million to a Final Appropriation of R374.5 million, of which R2.5 million was not spent at year-end.

In total, R517.4 million originally allocated to buildings were not spent as projected at year-end.
If expenditure was measured on the originally allocated budget at the start of the 2022/23 financial year, thus not taking in-year adjustments into account, less than half of the allocation would have been spent at year-end (46.1%).

At year-end, the target for the construction of police stations was not achieved.
Table 1: Appropriation statement for 2022/23 Adjusted Final Actual Appropriation Appropriation Expenditure Expenditure Variance as % of final appropriation R’000 Programme Administration 20 511 990 20 247 725 20 244 603 3 122 100.0% Visible Policing 53 062 384 53 286 001 53 286 001 0 100.0% Detective Services 20 853 955 20 942 890 20 890 934 51 956 99.8% Crime Intelligence PSS Total Economic Classification Current payments 97 822 645 97 653 822 97 601 333 52 489 99.7% Compensation of employees 81 028 831 80 864 575 80 864 051 524 100.0% Goods and Services 16 793 814 16 789 247 16 737 282 51 965 99.7% Transfers and subsidies Payments of capital assets 1 259 399 1 533 747 1 533 747 0 100.0% 3 472 918 3 292 630 3 290 041 2 589 99.9% 12 286 R’000 Adjusted Final Actual Appropriation Appropriation Expenditure Expenditure Variance as % of final appropriation Buildings and other fixed structures 744 192 446 127 443 538 2 589 99.4% Buildings 634 527 Other fixed structures 109 665 377 092 69 035 69 035 374 503 2 589 100.0% Machinery and equipment 2 681 607 2 728 478 2 728 478 Transport equipment 1 884 711 1 706 104 1 706 104 Biological Assets 7 581 4 732 4 732 Software and other intangible assets 39 538 113 293 113 293 0 0 0 0 0 100.0% 100.0% 100.0% 100.0% 100.0% Total 102 554 962 102 554 962 102 499 884 55 078 99.9% Source: SAPS 2022/23 Annual Report 4.2.
Expenditure at Programme level Programme 1: Administration.

At the end of the 2022/23 financial year, the Programme had spent R20.244 billion of its Final Appropriation of R20.247 billion, thus recording a slight underspending of R3.12 million at year-end.

The underspending was recorded under the Corporate Services subprogramme.

Programme 2: Visible Policing.

At the end of the 2022/23 financial year, the Programme had spent R53.2 billion or 100% of its available budget of R53.6 billion.
The Programme recorded no underspending.

The Programme made significant use of virements and shifts during the last quarter of the financial year to achieve the 100% expenditure.

Programme 3: Detective Services.

At the end of the 2022/23 financial year, the Programme had spent R20.89 billion of its available budget of R20.94 billion, thus recording underspending of R51.9 million at year-end (99.8% expenditure).

The underspending was recorded in the Criminal Record Centre subprogramme.
The subprogramme spent 98.1% of its 13 287 Final Appropriation, of which the bulk of underspending was under Goods and services, which spent only 80.2% of its available funds.

Programme 4: Crime Intelligence.

At the end of the 2022/23 financial year, the Programme had spent R4.3 billion or 100% of its available budget of R4.3 billion, recording no underspending.

Programme 5: Protection and Security Services.


At the end of the 2022/23 financial year, the Programme had spent R3.7 billion or 100% of its available budget of R3.7 billion, recording no underspending.

4.3.

Unauthorised, Irregular and Fruitless and wasteful expenditure In 2022/23, the Department incurred no unauthorised expenditure, but did incur irregular expenditure of R185.9 million and fruitless and wasteful expenditure of R1.4 million during the financial year.
At the end of 2022/23, the Department had a closing balance of R2.07 billion in irregular expenditure.

4.4.

Exemptions and deviations received from National Treasury The following four procurement-related deviations were condoned by National Treasury, in 2022/23: • Accommodation for police trainees: Northern Cape.

• Supply and delivery of two armoured vehicles (BMWs x 5).

• SAPS/Council for Scientific and Industrial Research: Creation of a cybercrime information hub.
• Provisioning of voice and data services for the SAPS.

4.5.

Civil claims Over the past four financial years, the number of new civil claims and the total number of pending civil claims have fluctuated, but the number remains significantly high.

During 14 288 2022/23, a total number of 12 842 new civil claims were registered.

Although this is a decrease compared to the previous financial year, it shows an increased compared to 2020/21.
Despite the fluctuation in the number of claims, the value thereof has increased significantly and consistently across the past years.

The amount of pay-outs increased by 76.4% between 2020/21 and 2022/23.

In 2020/21, R367.2 million were paid out, which increased to R470.4 million in 2021/22 and increased significantly to R647.9 million in 2022/23.

This is despite the number of new claims decreasing in 2022/23 compared to the previous financial year.
In 2022/23, a total of 4 243 payments (court orders and settlements), valued at R647 927 115.60 (R647.9 million) were made, of which arrest and detention claims were the highest pay outs (R548.7 million).

At year-end, the SAPS had a total number of 51 085 claims, valued at R108.7 billion.

The value of pending claims is more that the total annual budget of the SAPS.

The AG has raised the exceptional liability as a matter of emphasis for two consecutive years.

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 Performance between 2018/19 and 2022/23 The overall performance of the Department achieved an average performance rate of 70% over the past five financial years.

In 2020/21, the performance of the Administration Programme increased significantly compared to the previous financial year, but has since stagnated at a performance rate of around 80% across the past three financial years.
The performance of Visible Policing Programme has stagnated over the past five financial year at around 70% and remains fairly low.

The achievement rates of the Crime Intelligence Programme had improved consistently over the past five financial years, while that of the Protection and Security Services Programme has regressed from its performance in 2019/20 and 2020/21.
Across the past five financial years, the performance of the Detective Services Programme has consistently regressed to a very low achievement rate of 43% recorded in 2022/23.
15 289 ( 2 0 1 8 / 1 9 - 2 0 2 2 / 2 3 ) % 1 8 % 0 8 % 8 7 % 4 7 % 3 7 % 1 7 % 1 7 % 0 7 % 2 8 % 7 6 % 7 4 % 9 6 % 7 6 % 3 6 % 8 5 % 2 5 % 3 4 % 0 0 1 % 1 9 % 3 8 % 0 0 1 % 0 0 1 % 9 7 % 1 7 % 1 7 % 4 7 % 3 6 % 4 7 % 0 7 % 2018/19 2019/20 2020/21 2021/22 2022/23 5.2 Overall performance for 2022/23 At the end of the 2022/23 financial year, the Department achieved 67.7% of its performance targets (65 from 96 targets), which shows a decrease in performance compared to the 70.1% achievement rate in the 2021/22 financial year.
The figure below provides a summary of the Department’s performance at the end of the 2022/23 financial year against that of the previous financial year.

The performance on predetermined targets of the Administration Programme declined slightly from 80% in 2021/22 to 78% in 2022/23.

The performance of the Visible Policing Programme decreased from 71% in 2021/22 to 70% in 2022/23.

The Programme’s performance also declined in 2021/22 compared to an achievement of 73.1% in 2020/21.
The continued decline in the achievement of predetermined targets in the Detective Services Programme remains concerning.

The Programme recorded an achievement rate of only 43% in 2022/23.

The low performance is due to the Criminal Record Centre and Forensic Science Laboratory subprogrammes achieving none of its predetermined performance targets in 2022/23.

The achievement rate of the Crime Intelligence Programme increased from 91% in 2021/22 to 16 290 100% in 2022/23.
The performance of the Protection and Security Services Programme remained unchanged at 71% in 2022/23 compared to the previous financial year.
O V E R A L L P E R F O R M A N C E I N 2 0 2 2 / 2 3 V S 2 0 2 1 / 2 2 % 0 8 % 8 7 % 1 7 % 0 7 2021/22 2022/23 % 0 0 1 % 1 9 % 2 5 % 3 4 % 1 7 % 1 7 % 0 7 % 5.3 Programme performance for 2022/23 5.1.1.
Programme 1: Administration At the end of the 2022/23 financial year, the Administration Programme achieved 18 of its 23 targets (78.2%), thus five targets were not achieved.
The following should be noted: Targets not achieved during the 2022/23 financial year Number of SAPS-owned The number of new police Number of identified firearms reported as stations established, as per Closed-Circuit Television stolen/lost the SAPS Infrastructure sites implemented • Target: Reduce to 600 Development Programme • Target: 102 CCTV sites (10%) • Target: 3 implemented • Achieved: 742 • Achieved: 1 • Achieved: 45 • Deviation: -142 • Deviation: -2 • Deviation: -57 AG Finding: Material irregularity Reason for deviation The delegation of Information and Communication 17 291 Technology (ICT) procurement processes for CCTV to the SAPS, inclusive of the awards made on prioritised sites, in Gauteng and the Free State, was dealt with late in the financial year, to enable the SAPS to establish a CCTV contract and complete the CCTV installations on the set target.
Percentage decrease in the Percentage of audits number of incidents of completed, in terms of confirmed fruitless and the Internal Audit Plan wasteful expenditure.

• Target: 100% • Target: 80% decrease • Achieved: 94.48% (137 • Achieved: Increased by from a total of 145) 207.62% from 105 • Deviation: -5.52% confirmed incidents in 2021/22 to 323 in 2022/23.
• Deviation: Increased by 207.62% 5.3.1.1 Police Infrastructure In 2022/23, the SAPS had earmarked three projects for the construction of new police stations.

The completion of the initial three new police stations, namely; Muyexe, in the Limpopo Province, Dwarsberg, in the North West Province and Riemvasmaak Police Station, in the 18 292 Northern Cape Province, was scheduled for 2022/23.
However, these projects were not completed, due to non-performance by the contractor and professional services, lengthy legal processes for the termination of the previously appointed service providers (contractors and consultants), challenges encountered by contractors in procuring skilled labour and sourcing building materials and ongoing project interruptions by interested parties.
The following are the reasons for deviations from planned targets and underperformance: • Limpopo Province: Muyexe Police Station: The formal termination of the previous contractor at the Muyexe Police Station was delayed due to the mediation process.

The advertised bid was awarded, in December 2022 and the site was handed over, on 9 February 2023.

• North West Province: Dwarsberg Police Station: Delay in obtaining the legal opinion on the previous contract, which was not obtained until 11 May 2022.
The bid for the appointment of a contractor was advertised and closed on 17 January 2023 and is still being evaluated.

• Northern Cape Province: Riemvasmaak Police Station: The contractor’s performance was impacted by inclement weather (heat wave), in January and February 2023.

Non-performance of the appointed contractor and consultant (civil and structural engineer), as well as difficulties in acquiring building materials further impacted negatively on performance.
• KwaZulu-Natal Province: Osuthu Police Station: The police station was earmarked for completion, in 2023/24, but was completed, in 2022/23.

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.

During 2022/23, safety upgrades at 218 police stations and other police facilities were completed.
Over the medium-term, R25 million has been allocated for the enhancements to safeguard police stations.

5.1.2.

Programme 2: Visible Policing 19 293 At the end of the 2022/23 financial year, the Visible Policing Programme achieved 17 from 24 performance targets (70.8%) (7 targets not achieved).
Targets not achieved during the 2022/23 financial year per subprogramme Subprogramme: Crime Prevention: Achieved 8 from 15 targets (7 not achieved) Percentage of new firearm Percentage reduction in the Percentage reduction in the license applications number of contact crimes number of contact crimes finalised within 120 working • Target: 9.21% (552 057) at Top 30 High Contact days • Achieved: Reported Crime Weight Stations • Target: 90% contact crimes increased, • Target: Decrease to 78 • Achieved: 58.20% (108 by 7.7% from 608 059, in 515 (8.18%) 553 finalised from a total 2021/22 to 654 761, in • Achieved: Reported of 186 525 received) 2022/23.
contact crimes at the • Deviation: -31.8% points • Deviation: Increased by identified Top 30 High 7.7% Contact Crime Weight Stations increased by AG Finding: Material 5.6% from 85 510, in irregularity 2021/22 to 90 291, in 2022/23.
Deviation: Increased by 5.6% AG Finding: Material irregularity Number of escapes from Percentage of functional Percentage reduction in the custody police stations rendering a number of contact crimes • Target: Decrease to 562 victim-friendly service to against women (18 years (2%) victims of crime, including and above) • Achieved: A total of 564 GBVF • Target: Decrease to 159 persons escaped from • Target: 100% compliant 891 (9.17%) police custody.
• Achieved: 91,63% (1 062 • Achieved: Reported • Deviation: -2 from a total of 1 159 contact crimes against 20 294 Subprogramme: Crime Prevention: Achieved 8 from 15 targets (7 not achieved) police stations were women increased by Note: In 2022/23, 13 SAPS compliant with all of the 8.1% from 179 208 in members were found guilty 3 set criteria).

2021/22 to 193 669 in of aiding an escapee.

• Deviation: -8.37% 2022/23.


• Deviation: Increased by 8.1% AG Finding: Material irregularity Percentage reduction in the number of contact crimes against children (below 18 years) • Target: Decrease to 35 779 (7.36%) • Achieved: Reported contact crimes against children increased by 2.1% from 45 197 in 2021/22 to 46 165 in 2022/23.
• Deviation: Increased by 2.1% AG Finding: Material irregularity Specialised Interventions subprogramme 100% of targets achieved in 2022/23 (4 targets) Border Security subprogramme 100% of targets achieved in 2022/23 (5 targets) 21 295 Subprogramme: Crime Prevention: Achieved 8 from 15 targets (7 not achieved) AG Finding: Material irregularity 5.1.3.
Programme 3: Detective Services The Detective Services Programme achieved 13 of its 30 performance targets (43.3%), thus not achieving 17 targets at the end of the 2022/23 financial year.

As in the previous 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 2022/23 (also 0% achievement in 2021/22).
The Directorate for Priority Crime Investigation (DPCI) or Special Investigations subprogramme achieved 85.7% of its targets in 2022/23 (6 from 7 targets), which is a decline in performance compared to the previous financial year during which all targets were achieved.
Targets not achieved during the 2022/23 financial year per subprogramme Subprogramme: Crime Investigations: Achieved 7 from 14 targets (50.0%) Detection rate for contact Detection rate for contact Detection rate for crimes crimes crimes at the identified 30 committed against women • Target: 51% high crime weight stations 18 years and above (murder, • Achieved: 46.28% (415 • Target: 45% attempted murder, all sexual 091 from a total of 896 • Achieved: 33.05% (43 offences, common assault 976) 180 from a total of 130 and assault GBH) • Deviation: -4.72% points 659) • Target: 71% • Deviation: -11.95% • Achieved: 70.07% (163 points 833 from a total of 233 804) • Deviation: -0.93% points Detection rate for crimes Percentage of identified Percentage of identified committed against children drug syndicates neutralised organised Criminal groups under 18 years (murder, with arrests neutralised with arrests attempted murder, all sexual • Target: 70% • Target: 70% offences, common assault and assault GBH) 22 296 • Target: 65% • Achieved: 10% (4 from a • Achieved: 20.41% (10 • Achieved: 62.95% (39 total of 40) with 26 from a total of 49) with 628 from a total of 62 arrests 50 arrests 950) • Deviation: -60% • Deviation: -49.45% • Deviation: -2.05% points Reason for deviation AG Finding: Material During the interim audit, in Reason for deviation irregularity 2022/23, it was determined Under-capacitation of units that the calculation method in the organised crime in the Technical Indicator environment.
Description yielded inaccurate results.

The Inadequate development of calculation method was members within the revised for the 2023/24 organised financial year.

crime environment.
Percentage of outstanding case dockets related to contact crimes older than 3 years finalised • Target: 15.09% • Achieved: 13.45% (5 929 from a total of 44 085) • Deviation: -1.64% AG Finding: Material irregularity Subprogramme: Criminal Record Centre: Achieved 0 from 3 targets (0%) Percentage of results of trial Percentage of results of trial Percentage of original updated in respect of guilty updated in respect of not previous conviction reports verdicts guilty verdicts generated 23 297 • Target: 95% of results of • Target: 95% of results of • Target: 95% original trial (guilty) updated, trial (not previous conviction within 20 calendar days guilty/withdrawn) reports generated, within • Achieved: 91,29% (149 updated, within 20 15 calendar days 024 from a total of 163 calendar days • Achieved: 81,36% (802 236) of results of trial • Achieved: 93.94% (737 239 from a total of 985 (guilty) updated, within 169 from a total of 784 980) of original previous 20 calendar days.
725) of results of trial conviction reports • Deviation: -3.71% (not guilty/ withdrawn) generated, within 15 updated, within 20 calendar days.

calendar days.
• Deviation: -13.64% • Deviation: -1.06% points Reason for deviation The presence of communication errors between systems Automated Fingerprint Identification System (AFIS) and the Criminal Records System, rebooting of the system is monotonous, network challenges, dependency on suppliers to resolve escalated queries, unscheduled down times of AFIS, load shedding and a shortage of personnel are significant concerns that impacted on the efficiency and effectiveness of the Criminal Record Centre.
Subprogramme: Forensic Science Laboratory: Achieved 0 from 6 targets (0%) Percentage of routine case Percentage of case exhibits Percentage of non-routine exhibits (entries) finalised (entries) not yet finalised case exhibits (entries) • Target: 75,00% within 35 exceeding the prescribed finalised calendar days time frame • Target: 70,00% within • Achieved: 20.10% (55 • Target: Backlog not 113 calendar days 927 from a total of 278 exceeding 10% of • Achieved: 66.09% (3 299 244) registered case exhibits from a total of 4 992) • Deviation: -54.9% points (entries) • Deviation: -3.91% points • Achieved: 29.63% (195 605 from a total of 660 - 102) 24 298 • Deviation: -19.63% points Percentage of Ballistics Percentage of Biology DNA Percentage of DNA case Intelligence (IBIS) case Intelligence case exhibits exhibits (entries) not yet exhibits (entries) finalised (entries) finalised finalised exceeding the • Target: 95,00% within 35 • Target: 80,00% within 90 prescribed time frames calendar days calendar days • Target: Backlog not • Achieved: 86.28% (67 • Achieved: 62.42% (282 exceeding 10% of 126 from a total of 77 211 from a total of 452 registered case exhibits 797) 092) (entries) • Deviation: -8.72% points • Deviation: -17.58% • Achieved: 13.97% (55 681 from a total of 398 439) • Deviation: -3.97% points The performance of the Forensic Science Laboratory subprogramme has seen a consistent decrease over the past five financial years, with the backlog in DNA analysis rising sharply to unacceptably high levels of case
 exhibits not finalised within 90 days.
At the end of March 2023, the overall backlog of forensic laboratories was 29,63%, down from 57,46%, in 2021/22, which is a reduction of 27,83%.

The DNA examination backlog was reduced by 61,2% from 143 795, in the first quarter of the reporting period to 55 681 at the end of the fourth quarter.

The laboratory registered 660 102 cases/entries during the reporting period, compared to 536 350 cases/entries during the previous financial year.
In 2022/23, 813 125 or 123,18% of cases/entries were finalised, compared to 457 990 or 85,39%, in 2021/22.

A total of 278 244 routine cases were received, of which 55 927 (20,10%) were finalised within 35 calendar days, down from 30 746 (22,75%) in the previous year.

25 299 5.1.4.

Directorate for Priority Crime Investigations (DPCI) The Directorate for Priority Crime Investigations (DPCI) achieved 6 from 7 performance targets and recorded an achievement of 85.7% with most targets over-achieved.
During 2022/23, the following successes were attained: • A total of 2 852 arrests were made, compared to 2 809 arrests, in 2021/22, an increase of 43 arrests.

• Drug seizures totalling R1.3 billion were made, along with counterfeit goods, precious metals and endangered species valued at R244 million.

A total of 232 firearms, 8 393 rounds of ammunition and 6 577 explosives were seized, as well as 266 vehicles worth R122 605 951 forfeited to the State.
• A total number of 266 orders, inclusive of preservation, restraint and confiscation forfeiture orders and 155 of criminal network assets were issued to the amount of R356 million.

5.1.5.

Programme 4: Crime Intelligence The Crime Intelligence Programme achieved 12 of its 12 performance targets of the 2022/23 financial year (100%), which is a performance rate of 100%.
It should be noted that a high achievement rate on performance indicators does not indicate that the Crime Intelligence Division operated optimally during the 2022/23 financial year.

In terms of specific capacitation in the SAPS Crime Intelligence Division, numerous vacancies were filled, including the appointment of a Divisional Commissioner.

Significant capacitation was realised within the Crime Intelligence Division.
The Division has also deployed two operatives per police station, at all Top 30 National High Weight Stations for Contact Crime, to provide for proactive and reactive operational intelligence products on prioritised crime threats.

5.1.6.

Programme 5: Protection and Security Services 26 300 The Protection and Security Services Programme achieved five of its seven performance targets for 2022/23 (71.4%), thus not achieving two targets in the Government Security Regulator subprogrammes (both PSS and PPS).
Targets not achieved in 2022/23 Protection and Security Services Presidential Protection Services Government Security Regulator Government Security Regulator Percentage of National Key Points Percentage of National Key Points evaluated evaluated • Target: 100% (217) • Target: 100% (10) • Achieved: 99.07% (213 from a total of • Achieved: 90% (9 from a total of 10) 215) • Deviation: -0.93% • Deviation: -10% Reason for deviation Reason for deviation Access was denied to Killarney Residence, Two NKPs were declassified.
As a result, in these evaluations were discounted from the Gauteng, due to the lack of implementation target.

of security measures by the National Two evaluations were not conducted, due to Department of Public Works and a budget reduction.

Infrastructure (NDPWI).

Provision of in-transit protection During 2022/23, 71 national and 133 provincial dignitaries, as well as 25 ad-hoc and 48 foreign dignitaries who visited South Africa, during 2022/23, received in-transit protection.
There were a total of 35 757 movements of South African VIPs within and outside the country’s borders.

Provision of static protection A total of 14 Static Units provided 84 745 protection services to 73 VIP residences, 30 strategic installations dispersed throughout South Africa and 11 SAPS-occupied buildings, in 2022/23.

There were no security breaches during protection duties.
Government Security Regulator 27 301 During 2022/23, the following regulatory functions were performed: • A total of 1 334 applications for security guard positions for NKPs were processed.

In accordance with Regulation 4(a) to (g) of the NKP Act, 1980 (Act No.

102 of 1980), it was determined that two applicants had criminal records, while none were deemed incapable.

• Evaluated 213 from a total of 215 NKPs.

Two NKPs that were deregistered were not evaluated.
• A total of 126 providers of security services and security training were evaluated and 69 were not evaluated, of which 21 were deregistered and one was suspended.

Due to budget constraints, 47 security service providers and security training providers were not evaluated.

• A total of 45 new security service and training providers have been registered.
Presidential Protection Services Physical protection was provided to 22 presidential VIPs, who participated in 77 visits outside the borders of South Africa.

A total of 52 foreign heads of state or government were protected.

No security breach occurred during protection duties in South Africa or abroad, at significant events, or when foreign heads of state visited the country, either in South Africa or abroad.

6.
6.

HUMAN RESOURCE MANAGEMENT 5.4 Establishment and personnel changes At the end of the 2022/23 financial year, the SAPS had 179 502 employees against a year-end establishment of 178 708.

As such, the Departments has 794 more employees that is funded and has a negative vacancy rate of 0.4%.

The Administration, Crime Intelligence, and Protection and Security Programmes have more personnel that is allowed.
The Visible Policing and Detective Services programmes had vacancy rates of 0.5% and 2.7%, respectively at the end of March 2023.

It must be noted that the Protection and Security Services Programme had 1 578 employees more that its year-end establishment.

During the 2022/23 financial year, the SAPS recorded total expenditure of R80.86 billion on compensation of employees, which is 78.9% of the Department’s expenditure.
In terms of vacancies by critical occupation, the SAPS had a vacancy rate of 54.6% in engineers and related professionals, a 33.3% vacancy rate in 28 302 architects, town and traffic planners and a vacancy rate of 28.7% in psychologists and vocational councillors.

At the end of the 2022/23 financial year, 10 005 persons were recruited into the SAPS, while 5 733 personnel left the employment of the Department, which is an employee turnover rate of 3.3%.
The majority of reasons why employees left the Department were due to retirement (2 139), followed by resignations (1 913) and death (798).

5.5 Police/Population Ratio In 2022/23, the Department had a fixed establishment of 179 502 employees, of which 145 246 were SAPS Act employees and 34 256 were Public Service Act employees.

Over the last nine years (2014/15 to 2022/23), the police/population ratio 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 417 citizens (1:417) in 2022/23.
The table below illustrates the increase in the police/population ratio over the past eight years between 2014/15 and 2022/23: 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 2022/23 SAPS Act Employees Police/Population ratio 150 950 151 834 151 651 150 791 150 855 147 035 144 253 139 901 145 246 1:358 1:362 1:369 1:375 1:383 1:400 1:413 1:430 1:417 Source: SAPS Annual Reports 2014/15 – 2022/23 5.6 Section 35 Terminations 29 303 The SAPS did not award any section 35 terminations during 2022/23.
5.7 Regulation 47 Appointments/promotions In 2022/23, the SAPS made seven 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.

7.

INPUTS BY UNIONS AND STAKEHOLDERS 7.1.
South African Policing Union (SAPU) SAPU raised concerns on the following areas: 1) Report of the Accounting Officer, 2) Strategic focus over the short to medium-term period, 3) Exemptions and deviations received form the National Treasury, 4) Strategic overview, 5) Legislative and other mandates, 6) Organisational structure, 7) Overview of Departmental performance, 8) Service delivery performance, 9) Police safety, 10) Risk management, 11) Human resources and 12) Employment changes.
A copy of the submission is available from the Committee Secretary.

7.2.

Police and Prisons Civil Rights Union (POPCRU) POPCRU highlighted concerns on the following areas: 1) Performance on various programmes, 2) human resources, 3) physical resources, 4) police killings and attacks on police stations, 5) Community-orientated Policing and Community Police Forums, 6) Gender-based Violence and Femicide, and 7) PFMA Compliance.

30 304 A copy of the submission is available from the Committee Secretary.

7.3.
7.3.

Independent Police Union of South Africa (IPUSA) IPUSA highlighted concerns on the following areas: 1) Confusing reporting lines on the organogram of the SAPS, 2) Output indicators on firearm management; 3) Non-achievement of targets in the Detective Services Programme is a result on capacity constraints; 4) Output indicators and actual performance of the Crime Intelligence Programme are not aligned; and 5) Confusion around the difference between National Key Points and Strategic Installations.
A copy of the submission is available from the Committee Secretary.

8.

COMMITTEE OBSERVATIONS The Committee made the following observations: 1) The Committee noted a misalignment between the achieved performance of the Department and expenditure at year-end.

While the Department had spent 100% of its available budget, only 67% of predetermined performance targets were achieved.
The misalignment is most significant in the Visible Policing and Detective Services Programmes, which are the two core service delivery programmes of the Department.

Concerns were also raised that performance indicators do not measure the lived experiences of citizens and that performance targets across different programmes do not complement each other.
An example was made that while the Crime Intelligence Programme achieved all of its performance targets, it seemingly does not support other divisions or functionaries of the Department.

2) The Committee expressed concern that the Department is not ensuring value for money or return on its investments, especially in terms of capital works projects and ICT projects.
Specific attention was given to the ineffective operation of various IT systems currently in use by the SAPS, including the ICDMS and the 10111 call centres, as well as significant delays in building projects to bring police services closer to communities.

The Committee noted further that the SAPS must engage in smarter and digital policing 31 305 solutions to assist them in the fight against crime and align with the Fourth Industrial Revolution (4IR).
3) The Committee raised concern about the repeat material findings made by the AGSA, especially in terms of adherence to legislation and internal controls.

Members noted that the repeat findings point towards ineffective management and leadership in the Department and that police members are not disciplined for transgressions and non- adherence to policies and procedures.

Members further noted that consequence management is lacking in the Department.
The Minister acknowledged that consequence management is problematic in the Department and that it is more difficult to deal with senior ranking officers in the SAPS.

4) The Committee questioned the AGSA’s relationship with the Internal Audit Committee to identify and address repeat audit findings.

Member indicated that various Audit Recovery Plans have been developed but that these remain ineffective as repeat findings persist.
The Committee questioned whether the Office of the AGSA monitors whether Departments are on the right track through in-year monitoring.

The Office of the AGSA noted that it will adopt a district approach to continuously monitor the controls put in place to ensure positive audit outcomes as part of a larger accountability ecosystem.

This approach will be rolled-out to more districts in future.
Generally, the Office of the AGSA has good relationships with the Internal Audit Divisions and Audit Committees to ensure alignment.

5) The Committee raised concerns about apparent deficiencies in the Department’s record keeping systems and that the root causes seem to stem from failures in the lower levels of accountability at station level with police members not complying with instructions.
Members questioned whether the root cause lies with ineffective IT systems, ineffective training or the lack of consequence management for officials failing to report or keep record.

Members raised the fact that the Office of the AGSA stated that systems put in place to mitigate repeat findings often do not trickle down to lower levels of management, especially station management.
6) The Committee raised concern about the continuous and consistent decline in the Detective Services Programme, which is most evident in the Forensic Science 32 306 Laboratory subprogramme.

It was stated that, in 2017, the Department had about 26 000 Detectives, which had reclined to about 17 600 in 2022.

The under capacitation and lack of skills were provided as reason for various targets not being achieved.
The Committee noted that the Department had previously committed to the re-enlistment of retired detectives and questioned the progress in this regard.

The Committee further highlighted the concern raised by the AGSA that forensic leads are not followed up by Detectives and that storage facilities are inadequate which can lead to the loss of case dockets.

The Department indicated that budget cuts will affect the environment, specifically in terms of allowances to Detectives.
The Department indicated that newly trained recruits have been allocated to the Detective Services Programme.

However, Members raised concern about the lack of experience and questioned whether the newly appointed constables are mentored by experienced Detectives in the Detective Services Programme.

7) 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 Minister of Police indicated that proper IT systems are desperately needed by the SAPS, such as basic equipment including power backup systems or generators in times of power outages.

Extensive engagements have been ongoing with sister departments without much results.

The Committee noted that all Departments are experiencing the same frustrations with the DPWI and SITA and indicated that Cabinet must intervene and develop solutions to address these challenges.
8) The Committee raised concerns about the increase in the number and monetary value of civil claims brought against the Department during the 2022/23 financial year.

The Department indicated that processes are underway to decrease the number of civil claims and to identify stations that are contributing the most to civil claims.

The Department further noted that claim amounts are beyond the control of the Department and that claims do not indicate the actual amounts that will be paid.
The SAPS Inspectorate has started implementing a mitigating strategy in July 2022 to address the escalation in civil claims.

A National Steering Committee and eight Provincial Steering Committees have been appointed to drive and implement the strategy.

The Inspectorate has identified cases of collusion between police members and legal firms that impact 33 307 civil claims.

The impact of the strategy will be felt over time.


The Deputy Minister indicated that the use of body-worn cameras will assist in this regard to capture (and prove) instances where police members acted within the confines of the law.

9) 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 to book.
The Committee noted that delays in DNA analysis results are resulting in the withdrawal of cases or cases being struck off the court roll.

The Committee further questioned whether all contacts in the FSL environment are in place, including maintenance of machinery and procurement of consumables.

10) Members raised concern about the funding of the Criminal Justice System (CJS) revamp and the Integrated Justice System (IJS) projects.
Members questioned whether value for money had been attained and requested a breakdown of expenditure since the projects’ inception in 2012.

The Department indicated that a written response will be provided.

11) Members raised concern about the significant increase in kidnappings in the Eastern Cape province and that especially business owners are targeted.
The Committee requested that the Department should indicated what steps are being taken to address this especially in light of police members allegedly being involved.

The Department indicated that steps are taken and that it is jointly addressed with the cooperation of the DPCI.

12) The Committee raised concern about the ongoing challenges with the availability of vehicles and excessive time spent is garages for repairs.
The Committee further noted that the vast majority of vehicle repairs are done under RT46 contracts, meaning that repairs are done by external service providers.

Members questioned whether SAPS garages will be bolstered to do repairs in-house.

Members further raised concern about the exemption from procurement regulations approved by National Treasury to procure two armoured vehicles (BMWs).
The Department stated that garages have been decentralised to provinces in order to lessen outsourcing and promote skills development in the Department.

Further, approximately 900 vehicles from the SAPS 34 308 fleet of 46 000 have been out of commission for more than a year for major repairs.

The Department noted that panel beating is specifically problematic and all such services are outsourced.

The two BMW armoured vehicles were procured for transporting the President and Deputy President.
13) The Committee raised significant concern about the lack of Public-Private Partnerships (PPPs) in the Department, especially when a whole-of society approach is touted as the only response to the escalating crime rates in South Africa.

The need for PPPs was specifically raised by the President to address the backlog in DNA analysis, yet no such partnerships have been realised.

14) Members agreed with comments made by IPUSA that the administration of firearms licensing should not be a SAPS mandate.
Previously, a Member had suggested that the administration of firearms should be taken out of SAPS and done through a PPP agreement.

In a Parliamentary response, the Minister committed to explore this possibility.

Members requested an update on this commitment.

15) The Committee noted that civilians face severe consequences when their firearms are either lost or stolen, but equal importance is not given to SAPS members whose firearms are lost or stolen.
Members questioned whether investigations are done and whether a proper inventory are kept on firearms as assets of the State.

Members raised concern that the Department’s asset register is not properly kept and questions how the Department accounts for the loss of state assets.

16) Members raised significant concern about the under capacitation of the DPCI, which is currently operating on an available workforce of only 52% of what is needed.
The Committee expressed its appreciation of the successes achieved by the DPCI despite the lack of sufficient personnel.

Members noted that a solid plan must be put in place to address the capacitation of the DPCI over the short to medium term.

It was noted that section 17G of the SAPS Act, 1995 should be amended to retain personnel in DPCI.
17) Members raised concern about the apparent over-capacitation of personnel in the PSS Programme and noted that additional personnel to the post establishment should be better utilised in the Department’s core service delivery Programmes.

35 309 18) The Committee noted that the funding allocation to CPFs must be equitably spread across provinces and that CPFs should account for expenditure.

The Department should ensure that value for money is gained from this investment.
19) The Committee raised concern about the continued attacks on police members and questioned whether members are adequately trained to defend themselves in dangerous situations.

Members indicated that housing should be allocated to police members staying in informal settlements as this poses a significant threat to the safety of police members.
Members highlighter the point made by SAPU that police officers are scared to use their firearms in fear of possible backlash, and the point made by POPCRU that section 49 of the Criminal Procedures Act should be amended to account for policing needs in terms of self-defence.

9.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS 9.1.
Recommendations to National Treasury The Committee recommends the following: 1) Funds for the recruitment of additional personnel should be made available as the balance left between staff attrition and the 10 000 recruits does not address the needs of the Department.

9.2.
9.2.

Recommendations on service delivery performance The Committee recommends the following: 1) 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.

The Department should ensure alignment between the achievement of targets in the AR and lived experience of citizens over the MTSF.
2) The SAPS should measure the achievement of forensic evidence targets from the date evidence is taken and captured on the system and not from the date that samples were 36 310 submitted for analysis.

Real delays and the impact on the criminal justice value chain is not measured through current metrics.

3) The SAPS should include and enforce penalty clauses in all contracts.
Financial penalties in the Service Level Agreement with SITA should be enforced in terms of the agreement, when deliverables are not fulfilled within the agreed timelines.

4) The record-keeping system of the Department should be simplified to ensure reliable information and police members failing to keep adequate record should be disciplined.

5) The SAPS must identify projects on which return on investment can be measured and shown.
This could include infrastructure and IT projects and their time-frames, funds allocated and whether the desired outcomes were realised as intended.

6) The Department should expedite consequence management steps against employees incurring irregular, and fruitless and wasteful expenditure.

7) The National Commissioner Should ensure full implementation of critical systems and infrastructure (i.e.

10111 function and ICDMS) to enhance crime prevention and response strategies.
8) The SAPS must conduct an analysis of call centers to identify and correct all the key matters causing dropped calls.

This must be prioritised and align to the commitments made by the President in his 2023 State of the Nation Address.

9) The capacitation of the DPCI should be prioritised to ensure the fulfilling of the Directorate’s mandate.

10) Funding to CPFs must be spread equitably across provinces and expenditure should be monitored to ensure value for money and return on investment.
11) The Department should explore the outsourcing of firearm management through a PPP to ensure the effective administration of firearms and alleviate personnel and funding pressures on the SAPS.

Progress on the implementation of recommendations above should be submitted to the Committee by 01 February 2024.

Progress should also be presented to the Committee as part of the Department’s 2024/25 APP presentation during the 2024/25 budget hearings.

9.3.
9.3.

Reporting requirements The Committee requests the following information to be submitted: 37 311 1) Report detailing the Department’s resource requirements (needs analysis) over the short to medium term.

This report should be submitted by 24 November 2023.
2) Report on solutions to address ongoing challenges experience in capital works projects, especially the long outstanding completion of police stations, specifically the Muyexe (Giyane) station in the Limpopo province and the Riemvasmaak station in the Northern Cape comprehensive feedback report to enable escalation.

3) Report on CJS/IJS expenditure and outputs since the project’s inception in 2012.

4) Breakdown of implementation and successes of the Safer Cities project.
5) Breakdown of the personnel establishment in the PSS Programme.

6) Report on the outcome of the review of the promotion policy when concluded in the Safety and Security Sectoral Bargaining Council (SSSBC).

7) Report on solutions to address the continued challenges to provide housing to police members to ensure their safety and accommodate them closer to their police stations where they are employed.
8) Analysis of the organisational structure of SAPS to identify possible challenges and areas where the structure can be streamlined.

9) Breakdown of vehicles and other assets donated to the Department by Provincial Governments and other entities and how the Department accounts for these donations.

Written submissions, except the first report, should be submitted by 19 October 2023.

10.
10.

CONCLUSION The Committee expresses its appreciation to the Ministry of Police, Deputy Minister of Police, the National Commissioner, SAPS Management and support team, the Office of the Auditor General and labour unions for their participation during the Annual Report hearings.

The Democratic Alliance (DA) reserves their rights on the report.

Report to be considered.

38 312 8.


BUDGET REVIEW AND RECOMMENDATIONS REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE CIVILIAN SECRETARIAT FOR POLICE SERVICES (CSPS) PERFORMANCE FOR THE 2022/2023 FINANCIAL YEAR DATED 20 OCTOBER 2023.

The Portfolio Committee on Police, having considered the Annual Report and financial information of the Civilian Secretariat for Police Service for the 2022/23 financial year on 11 October 2023, 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).
Mandate of the Committee The mandate of the Committee therefore is to fulfil its constitutional function to: • Pass legislation; 1 313 • 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.

• 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 2022/23.

• Section 3: Report of the Auditor-General of SA (AGSA).
This section provides a summary of the audit outcome of the Department for the 2022/23 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 2022/23 Annual Report hearings.
• Section 7: Committee recommendations.

This section provides the recommendations made by the Committee following the 2022/23 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 2022/23 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; 2 314 • 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.
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 • 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 3 315 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.

REPORT OF THE AUDITOR GENERAL OF SOUTH AFRICA (AGSA) The Department received an unqualified audit opinion with no material findings on performance, no material findings on non-compliance with legislative requirements, and no material findings on internal control deficiencies.
Based on these findings, the Department received a clean audit.

This is an improvement compared to the previous financial year in which a matter of emphasis was raised on material underspending.

4.

FINANCIAL OVERVIEW 2022/23 4.1.


Overall financial performance At the end of the 2022/23 financial year, the CSPS had spent R152.6 million or 97.9% of its Final Appropriation budget of R155.920 million, thus recording underspending of R3.2 million at year-end (this is a significant decrease in the underspending recorded in the previous financial year of R12.6 million).
The slight underspending was recorded in all four budget programmes of the Department: • Programme 1: Administration: - R1.1 million • Programme 2: Inter-Sectoral Coordination and Strategic Partnerships: - R12 000.00 • Programme 3: Legislation and Policy Development: - R874 000.00 • Programme 4: Civilian Oversight, Monitoring and Evaluations: -R1.2 million The bulk of the underspending on all Programmes resulted from vacant posts and an amount of R2,997 million on Compensation of Employees represents 91.4% of the total underspending of R3,279 million.
The main vacancy which could not be filled during the financial year is that of the Secretary for Police Service.

The table below shows the financial performance of the Department at the end of the 2022/23 financial year.

4 316 Table 1: Appropriation statement 2022/23 Programme R’000 Adjusted Appropriati on Viremen t Final Actual appropriati Expenditur on e Varianc % e Spent 1.

Administration 71 340 2 810 74 150 73 049 1 101 98.5% 2.
Intersectoral Coordination and 27 155 (1 685) 25 470 25 458 12 100.0% Strategic Partnerships 3.

Legislation and Policy Development 4.


Civilian Oversight, 23 586 (1 886) 21 700 20 826 874 96.0% Monitoring and 33 839 767 34 600 33 308 1 292 96.3% Evaluations Total 155 920 - 155 920 152 641 3 279 97.9% Source: 2022/23 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).
However, in 2022/23, the Department had recorded the best spending outcome across nine financial years.

The significant underspending recorded in 2021/22 was due to the re-location of offices that did not materialise.
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 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% 5 17 403 1 292 11 152 6 328 7 355 5 617 317 Financial year 2020/21 2021/22 2022/23 Underspending on total final appropriation Expenditure as a % of total final appropriation Variance on total final appropriation (R’000) 95.9% 91.6% 97.5% 5 624 12 636 3 279 Source: CSPS Annual Reports: 2014/15 to 2022/23 At economic classification level, the Department recorded underspending as follows: • Current payments: Spent 98.0% • Transfers and subsidies: Spent 94.7% • Payments for capital assets: Spent 93.7% In 2022/23, R107 462.00 was transferred to the South African Safety and Security Education and Training Authority (SASSETA).
4.2.

Expenditure against performance The table below shows financial performance against service delivery performance across the past six financial years.

Ideally, there should be a close correlation between funds spent and the achievement of predetermined performance targets at year-end.

Between 2017/18 and 2020/21, the Department had recorded significantly higher spending against performance.
The closest correlation between spending and performance can be seen in 2021/22 where performance was higher than expenditure, but this shifted again in 2022/23 where the correlation widened-up again.

6 318 Performance vs Expenditure (2017/18 to 2022/23) 94,4% 94,4% 81,2% 78,1% 96,3% 95,9% 86,0% 86,0% 92,0% 91,6% 89,2% 97,5% 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Performance Expenditure 4.3.
Expenditure per Programme Programme 1: Administration: The Programme had an Adjusted budget of R71.340 million, which increased to a Final appropriation of R74.150 million (plus R2.810 million during budget adjustments) of which the Programme had spent R73.049 million or 98.5%.

Thus underspending of R1.101 million was recorded at year-end.
Programme 2: Intersectoral Coordination and Strategic Partnerships: The Programme had an Adjusted appropriation of R27.155 million, which was increased to a Final appropriation of R25.470 million (less R1.685 million during the budget adjustments), of which the Programme had spent 100%.

A slight underspending of R12 000.00 was recorded at year- end.

The monetary value of the underspending is too small to be recorded as a percentage of underspending).
Programme 3: Legislation and Policy Development: The Programme had an Adjusted appropriation of R23.586 million, which was decreased to a Final appropriation of R21.700 million (less R1.886 million during the budget adjustments), of which the programme had spent 96.0% of its allocation, thus underspending by R874 000.00 at year-end.
7 319 Programme 4: Civilian Oversight, Monitoring and Evaluations: The Programme had an Adjusted appropriation of R33.839 million which was reduced slightly to a Final appropriation of R34.600 million (less R761 000.00 during the budget adjustments), of which the Programme had spent 96.3%, thus leaving R1.292 million unspent at year-end.
It must be noted that under this Programme, the Police Performance, Conduct and Compliance subprogramme overspent by R1.066 million at year-end, located mainly in Compensation of Employees (105.6% spent) and Goods and services (109.2% spent).

The overspending was offset by underspending in Office of the Directorate for Priority Crime Investigation (DPCI) Judge and the National Forensic Oversight and Ethics Board (DNA Board) subprogrammes.
It is concerning that the Office of the DPCI Judge and the DNA Board recorded significant underspending at the end of the 2022/23 financial year.

The Office of the DPCI Judge spent R6.226 million (83.9%) of its Final Budget, thus underspending by R1.192 million.

The DNA Board spent 72.8% of its Final Appropriation of R3.780 million, thus underspending R1.027 million at year-end.
The main underspending in the Office of the DPCI Judge was on machinery and equipment (only 40.9% spent), and in the DNA Board the main underspending was under compensation of employees (65.6% spent).

4.4.

Unauthorised expenditure The Department did not incur any unauthorised expenditure during 2022/23, but continues to have a large amount of historical unauthorised expenditure awaiting authorisation (R5.6 million) due to overspending of appropriated funds in 2015/16.
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 incurred R1.129 million in irregular expenditure in 2022/23.

At year-end, the Department had a closing balance of R28.6 million in irregular expenditure of which the majority is carried over from previous financial years.

8 320 4.6.
8 320 4.6.

Fruitless and wasteful expenditure The Department did not incur any fruitless and wasteful expenditure in the 2022/23 financial year.

At year-end, the Department had a closing balance of R32 000.00 stemming from previous financial years.

5.

PERFORMANCE OVERVIEW 2022/23 The overall performance of the Department declined from 92.3% achievement on predetermined targets in 2021/22 to 89.2% in 2022/23.
Two of the budget programmes achieved 100% of their performance targets (many of which recorded over-achievement), while the Administration and Intersectoral Coordination and Strategic Partnerships Programmes did not achieve all performance targets.

Although the change on performance in percentage value seems large, the Department only failed to achieve three targets (one additional to the previous financial year in which only two performance targets were missed).
At year end, the Department achieved 25 from a total of 28 targets in 2022/23.
The graph below / 1 9 T O 2 0 2 2 / 2 3 120% 100% 80% 60% 40% 20% 0% % 6 6 % 0 6 % 0 5 % 0 5 % 8 3 % 0 0 1 % 0 0 1 % 0 0 1 % 8 8 % 5 7 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 0 9 % 6 8 % 6 8 % 2 9 % 9 8 % 8 7 2018/19 2019/20 2020/21 2021/22 2021/22 , 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 shows the progression in budget programmes between 2018/19 and 2022/23.
5.1.

Programme 1: Administration The Administration Programme achieved 60% of planned targets and had spent 98.5% (R1.1 million unspent) of its budget allocation.
9 321 Planned Actual Indicator target Achievement Deviation Corporate Services Subprogramme 2022/23 2022/23 Reason for deviation Vacancy rate of not more Not more 7% 0 N/A than 7% of the total post than 7% establishment Percentage implementation 100% 83% (17%) Certain key of the Human Capital Strategy activities in the implementation plan could not be executed due to inadequate human resources in specialist areas such as labour relations and employee health and wellness Percentage implementation 100% 100% 0 N/A of the Information and Communication Technology (ICT) Strategy Financial Administration Subprogramme Percentage of payments 100% 99% (1%) The target could not made to creditors within 30 days be achieved due to the unavailability of systems caused by a breakdown of the fibre-line.
10 322 Indicator target Achievement Deviation Planned Actual 2022/23 2022/23 Reason for deviation Percentage of expenditure 98% 98% 0% N/A in relation to budget allocated 5.2.

Programme 2: Intersectoral Coordination and Strategic Partnerships The Intersectoral Coordination and Strategic Partnerships Programme achieved 88.8% of its annual performance targets and had spent 100% (small amount of R12 000.00 unspent, which does not register) of its allocated budget.
Indicator target Achievement Deviation Planned Actual 2022/23 2022/23 Reason for deviation Intergovernmental, Civil Society and Public-Private Partnerships Subprogramme Number of memorandum of 2 2 0 N/A understanding (MoU) signed with stakeholders per year to build safer communities Number of MoUs implemented to build safer communities Number of workshops facilitated with provincial secretariats and municipalities on the establishment of Community Safety Forums (CSFs) per year 3 9 3 0 N/A 13 +4 The additional achievement was as a result of the high demand for workshops on the establishment of CSFs.
11 323 Indicator target Achievement Deviation Planned Actual 2022/23 2022/23 Reason for deviation Number of provincial 9 13 +4 The anti-crime capacity-building workshops held on crime prevention policies per year campaigns conducted were timely responses to the fight against gender-based violence and femicide, and social crime prevention measures taken to address this challenge.

This contributed to the over-achievement of the indicator.
Number of Anti-Crime 3 4 +1 The increase in Campaigns conducted per year reported GBV and gang-related cases, and the demand for additional campaigns, resulted in the over- achievement of the indicator.

Number of assessment 2 0 -2 There was no CPF reports on implementing Community Policing Forum (CPF) regulations/ standards approved by the Secretary for Police per year 12 assessment report received at the time of reporting.
324 Indicator target Achievement Deviation Planned Actual 2022/23 2022/23 Reason for deviation Number of provincial CPF 9 9 0 N/A training workshops facilitated on the civilian oversight role of CPFs Community Outreach Subprogramme Number of Izimbizo/public 8 17 +9 There was a need to participation programs held with communities to promote community safety per year conduct additional Izimbizo for the period under review.
Number of response plans 3 3 0 N/A on the Izimbizo / public participation programmes held to promote community safety (feedback to communities) In terms of Community Safety Forums (CSFs), the Department facilitated 13 CSF workshops in municipalities.

5.3.

Programme 3: Policy Development and Research 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 96.0% of its allocated budget (R874 000.00 unspent).
Planned Actual Indicator target Achievement Deviation Policy Development and Research Subprogramme 2022/23 2022/23 Reason for deviation 13 325 Number of draft National 1 1 0 N/A Policing Policies submitted to the Secretary for Police Service for approval per year Number of research reports 1 1 0 N/A on policing and safety approved by the Secretary for Police Service per year Percentage implementation 100% 100% 0 N/A of the Knowledge and Information Management Strategy Legislation Subprogramme Number of Bills submitted 2 2 0 N/A to the Minister for Cabinet approval per year During 2022/23, the Criminal Law (Forensic Procedures) Amendment Bill was assented to and signed by the President in December 2022.
A signed Proclamation was published in the Gazette on 24 February 2023, which outlined 3 March 2023 as the date of commencement of the Bill.

The Protection of Constitutional Democracy Against Terrorist and Related Activities (POCDATARA) Amendment Bill was assented to and signed by the President on 29 December 2022 and published in the Gazette.

The Proclamation Notice to put the Bill into operation was published in the Gazette on 4 January 2023.
The Department conducted a joint oversight project with Provincial Secretariats to determine the alignment of provincial safety strategies with the 2016 White Paper on Safety and Security (WSS) and the Integrated Crime and Violence Prevention Strategy (ICVPS).

Further, the Department conducted research on the analysis of murder case dockets.

14 326 5.4.
14 326 5.4.

Programme 4: Civilian Oversight, Monitoring and Evaluation The Civilian Oversight, Monitoring and Evaluation Programme achieved 100% of its annual performance targets in 2022/23 and spent 96.3% of its allocated budget at year-end (R1.29 million unspent).
Planned Actual Indicator target Achievement Deviation 2022/23 2022/23 Reason for deviation Police Performance, Conduct and Compliance Monitoring Subprogramme 3 1 Number of Police Oversight initiatives undertaken Number of SAPS Budget and Programme Performance Assessment Reports approved by the Secretary per year Number of assessments 2 reports on Complaints Management approved by the Secretary per year Number of reports on SAPS 2 Implementation of IPID Recommendations approved by the Secretary per year Number of assessments on police conduct and integrity undertaken Number of monitoring reports on compliance and implementation of the Domestic Violence Act by 1 2 3 1 2 2 1 2 15 0 0 N/A N/A 0 N/A 0 N/A 0 N/A 0 N/A 327 Indicator target Achievement Deviation Planned Actual 2022/23 2022/23 Reason for deviation SAPS approved by the Secretary per year Number of reports on the 2 2 0 N/A implementation of and compliance to legislation and policies approved by the Secretary per year Number of reports on the 4 4 0 N/A functioning of the National Forensic DNA Database assessed per year Policy and Programme Evaluations Subprogramme Number of assessment reports on SAPS programmes Number of evaluation reports on legislation and policies 1 1 1 1 0 N/A 0 N/A In terms of oversight monitoring and evaluation, the Department conducted an evaluation of the implementation of the Second-Hand Goods Act of 2009 to assess whether the Act is being implemented as intended.
The findings of this evaluation will be used in the amendments to the Second-Hand Goods Act.

The Department conducted a pilot of the national monitoring and domestic violence assessment tool at 34 police stations, in preparation for the 2023/24 Police Station Census Project.

5.5.

Human Resource Management 16 328 At the end of the 2022/23 financial year, the Department had filled 146 of its 157 post establishment, resulting in a vacancy rate of 7%.
The Department remained compliant with the legislated employment equity targets, having exceeded the 50% target of the number of female appointments in the senior management echelon; the 2% target of persons employed with disabilities, and at least 30% of the staff complement comprising of youth.
Despite the fact that the Department has an overall vacancy rate of 7% (thus achieving an appropriate vacancy rate as stipulated for Government Departments), it is concerning that the highest vacancy rate is in the Senior Management salary band (levels 13-16).

The Department had five vacancies in this level (vacancy rate of 15.63%), of which the Accounting Officer is one (Secretary for Police/Director-General).

This position has been vacant for almost two years (22 months).
All six Chief-Director positions are filled, while four Director positions are vacant.

In the 2022/23 financial year, the Department had an overall turnover rate of 6.29%, of which the highest turnover was within the Senior Management Service Bands A (L13) at 13.04% turnover.
In total, 15 employees (10.27% of the total number of employees) left the employment of the Department, of which the majority of employees were appointed and transferred into the Department (12) and nine terminations and transfers to other Public Service Departments.

In terms of labour relations, the Department had three grievances and four disputes logged.

6.
6.

COMMITTEE OBSERVATIONS The Committee made the following observations during the 2022/23 Annual Report hearings of the Department: 1) The Committee noted that the Department had previously committed to review the SAPS Disciplinary Regulations and questioned the progress made in this regard, especially in terms of the implementation of IPID recommendations and consequence management.
Members stated that without such a review and subsequent amendments, the IPID will remain impotent to effectively fulfil its mandate and enforce recommendations, and by implication consequence management in the SAPS will remain weak.

The Department indicated the review has been completed and findings 17 329 were shared with the SAPS.

However, the implementation and further consultations must be led by the SAPS as it involves internal labour relations.
Any amendments to the Disciplinary Regulations must also be consulted at the Safety and Security Sectoral Bargaining Council (SSSBC).

2) The Committee questioned whether the recommendations made by the Department and the IPID to SAPS are monitored to verify the implementation thereof.

The Department indicated that they had some challenges in the past, but that through various engagements with the SAPS Management the challenges had been resolved to some extent.
The Department indicated that, going forward, they will brief the Board of Commissioners on a quarterly basis on the implementation of recommendations and also the SAPS management.

The SAPS Audit Committee has also requested a compendium of recommendations to monitor the implementation thereof.

The Department has established an internal component to exclusively monitor the implementation of recommendations.
3) Members highlighted the concerns raised by the AG in that the Department and its mandate are not visible to the broader society and questioned whether the Department can develop a broader marketing strategy to advertise its services and mandate.

Members indicated that citizens do not understand the Department’s mandate and various complaints have been received that questioned the impact of the Department on the performance and professionalisation of the SAPS.
The Department indicated that the concern raised by the AG has been noted and that a marketing strategy is being developed.

However, the implementation of such strategy is dependent on available funds.

Despite limited resources, the Department will improve its visibility to the broader citizenry.

The Department indicated that its impact is made through forwarding public complaints to the SAPS and monitoring whether complaints are addressed.
4) The Committee questioned an output indicator for the Legislation Subprogramme which measures the achievement of constitutionally compliant legislation submitted to the Minister and Cabinet.

Members indicated that this target was not achieved as IPID Amendment Bill was not certified as constitutionally compliant by the Office of the State Law Advisor.
The Committee questioned whether the Department had informed the Minister of Police that the IPID Amendment Bill was unconstitutional and that 18 330 despite this, the Amendment Bill was submitted to Parliament.

The Deputy Minister highlighted aspects of previous engagements on the issue in that an external legal opinion was sought on the constitutionality of the Amendment Bill but that it was received after the Bill was already introduced in Parliament.
5) The Committee questioned whether sufficient impetus is given to employee wellness programmes and stated that these programme must be strengthened to assist employees to deal with stress resulting from the nature of the work done by the Department.

The Department noted that the budget allocation is insufficient, but that an external service provider does provide the necessary support services to employees.
The Department clarified that these services are only for their personnel and not that of the SAPS as the SAPS has their own Employee Health and Wellness programmes.

7.

COMMITTEE RECOMMENDATIONS The Committee recommends the following: 1) The Committee recommends that greater attention should be given to monitor the implementation of recommendations made to the SAPS.

Recommendations issued by CSPS are not being adequately tracked/monitored to ensure an impact on the service delivery of the SAPS.
2) The Department should have agreed upon timelines and processes with the SAPS on how recommendations will be tracked and followed up.

3) The Department should ensure that all legislation produced are constitutionally compliant to avoid a repeat of the challenges created by the IPID Amendment Bill, 2023 in future.

4) The Department should develop strategies to drive a bigger impact on police performance and professionalism.
5) The Department should improve its marketing strategies to the public to bring about awareness of the role that the CSPS plays in police accountability.

Progress on the implementation of recommendations should be submitted to the Committee by 01 February 2024.

Progress should also be presented to the Committee as part of the Department’s 2024/25 APP presentation during the 2024/25 budget hearings.

19 331 8.
19 331 8.

CONCLUSION The Committee expresses 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 2022/23 financial year.

The Committee encourages 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.
The Democratic Alliance (DA) reserves their rights on the report.

Report to be considered.

20 332 9.

BUDGET REVIEW AND RECOMMENDATIONS REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY (PSIRA) PERFORMANCE FOR THE 2022/23 FINANCIAL YEAR DATED 20 OCTOBER 2023.
The Portfolio Committee on Police, having considered the annual financial and service delivery performance of the Private Security Industry Regulatory Authority (PSIRA) for the 2022/23 financial year on 13 October 2023, 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.
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.
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 1 333 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.
The Committee was briefed on the Annual Report for 2022/23 by the Private Security Industry Regulatory Authority on 13 October 2023.

This report is structured as follows: Section 1: Mandate of the Committee.

This section 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 2022/23 Section 3: The section provides a summary of the AGSA Report for 2022/23 Section 4: Financial overview 2022/23 The section provides an overview of the financial performance of the Authority.

Section 5: Performance against predetermined targets for 2022/23.

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: Committee observations.

The section provides the key observations made by the Committee during engagements on the 2022/23 Annual Report of the Authority.

2 334 Section 8: Committee recommendations.

The section provides the recommendation made by the Committee.

Section 9: Conclusion 2.


OVERVIEW OF THE PRIVATE SECURITY INDUSTRY 2022/23 At the end of March 2023, South Africa had 577 444 registered active security officers and 15 113 active security businesses.

According to the Authority, there has been a 31% increase in the number of registered active security businesses in 2022/23 compared to the previous financial year.
Over the last 10 years, active security businesses have grown by 86% from 8 144 security businesses in 2014 to 15 113 security businesses in 2022/23.

In 2022/23, there has been a slight decrease of 1% in the number of active security officers compared to the previous financial year.

Across 10 years, the number of security officers have grown by 19% from 487 058 security officers in 2014 to 577 444 security officers in 2023.

In 2022/23, 77% of active security officers were males and 23% were females.
The table blow provides a breakdown of security officers and businesses as at the end of 2022/23.
Total number of registered security businesses 19 019 Total number of registered and active security businesses 15 113 Total number of registered security officers 2 816 638 Total number of registered and active security officers 577 444 Total number of inactive security officers 2 239 194 In 2022/23, the Authority conducted 43 642 compliance inspections of security service providers were conducted or inspections as part of investigations by the Enforcement Department compared to 37 595 inspections for the same period the previous year.
This is a 16% increase in the total number of compliance inspections when compared to the previous financial year.

During the 2022/23 financial year, 4 250 investigations were finalised compared to 3 918 investigations for the same period the previous year (8% increase in the number of investigations compared to the previous year).

During 2022/23, 106 joint operations were conducted with South African Police Service, the Department of Employment and Labour, and the Department of Home Affairs.
3 335 During 2022/23, the Authority opened 1 680 cases of improper code of conduct cases against security businesses, of which 828 cases involved security businesses failing to pay the statutory minimum wage to security officers.

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.
In 2022/23, the audit opinion has changed to an unqualified audit with emphasis of matters.

In terms of the emphasis of matters, the AG made a finding on trade receivables.

Material impairments to the amount of R27 862 086 were provided for trade receivables and are potentially irrecoverable.

Furthermore, material losses to the amount of R14 255 895 were incurred as a result of a write-off of irrecoverable trade receivables.
The AG did not make any material findings on the annual performance report of the Authority in terms of the reliability of achievements on performance indicators.

In terms of material findings on compliance with legislation, the AG found that financial statements were not fully prepared in accordance with the prescribed reporting framework.
Material misstatements of payable from exchange transactions, other receivables and risk management disclosure note identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified audit opinion.
In terms of internal control deficiencies, the AG noted that management incorrectly interpreted the Generally Recognised Accounting Practice (GRAP) standards, which resulted in the incorrect accounting in disclosure line items in the annual financial statements.

Additionally, the AG noted that management did not implement adequate procurement processes to ensure compliance with Supply Chain Management (SCM) laws and regulations.
The table below show the audit outcomes for PSIRA over the past 13 years (2009/10 to 2022/23).
4 336 Financial year Audit outcome 2009/10 Qualified 2010/11 Unqualified with material findings 2011/12 Unqualified with material findings 2012/13 Qualified 2013/14 Unqualified with material findings 2014/15 Unqualified with material findings 2015/16 Unqualified with material findings 2016/17 Unqualified with material findings 2017/18 Unqualified with material uncertainty relating to the entity’s ability to continue as a going concern.
2018/19 Unqualified with no material misstatements and findings (Clean audit).

2019/20 Unqualified with no material misstatements and findings (Clean audit).

2020/21 Unqualified with no material misstatements and findings (Clean audit).

2021/22 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 2022/23 4.1.Financial position PSIRA’s financial sustainability increased in 2022/23 compared to the previous financial year.

At year-end, PSIRA closed with a surplus of R69.7 million and an accumulated surplus of R192 million.

This has to a large extent addressed the ongoing concern issues that were highlighted by the AG over the past three financial years.
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.
5 337 The table below provides a breakdown of the Authority’s financial performance in 2022/23 compared to the previous financial year.
Table 1: Statement of Financial Performance Financial year Assets Liabilities Revenue 2022/23 2021/22 363 440 941 264 348 149 162 794 633 133 401 373 Total revenue from exchange transactions 431 726 859 379 568 755 Revenue from non-exchange transactions 20 720 782 28 174 231 Total Revenue Expenditure 425 447 641 407 715 986 (382 748 107) (319 418 528) Surplus/ (Deficit) for the year 69 699 543 88 297 458 Source: 2022/23 PSIRA Annual Report During the year under review, the Authority’s total revenue increased from R407.7 million in the previous financial year to R425.4 million.
PSIRA’s expenditure increased from R319.4 million in 2021/22 to R382.7 million in 2022/23.

At the end of 2022/23, the debt impairment was R27.8 million which is an increase compared to the previous financial year in which debt impairment was R22.6 million.

Bad debt recovered is 45% below budget.

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 R4 920 000 (R4.9 million) as at 31 March 2023, which is a decrease compared to the previous financial year (R5.53 million).

The Authority incurred irregular expenditure valued at R451 101 during the 2022/23 financial year, and R82 000.00 in fruitless and wasteful expenditure.

4.2.Expenditure per programme 6 338 In 2022/23, the Authority spent R385.6 million of its R409.5 million budget, which is an underspending of R23.8 million at year-end.
It should be noted that these funds are not surrendered back to National Treasury as funds are not appropriated to it by the State, but collected by the Authority as it is a revenue-generating public entity.

The largest underspending was recorded in the Training and Communication Programme (less R11.9 million), followed by the Law Enforcement Programme (less R8.1 million), the Registration Programme (less R3.4 million) and the Administration Programme (less R268 000).
Table 2: Expenditure per programme Programme Administration Law Enforcement Budget R’000 213 866 134 720 Training and Communication 37 172 Registration Total 23 782 409 5089 385 685 Source: 2022/23 PSIRA Annual Report Actual (Over)/Under Expenditure expenditure R’000 212 598 126 523 25 215 20 349 R’000 268 8 197 11 957 3 433 23 855 5.
PEFORMANCE AGAINST PREDETERMINED TARGETS 5.1.Performance across five financial years The graph below illustrates PSIRA’s overall performance rate between 2018 and 2022 as well as performance per programme.

The performance of the Administration Programme increased from 2018/19 to 2020/21, where after it stabilised in 2021/22, but decreased in 2022/23.

The Law Enforcement Programme’s performance remained at 100% for three financial years (2018/19 to 2020/21) and declined substantially to 86% in 2021/22.
However, in 2022/23, the performance has reached 100% again.

The Communication and Training Programme’s performance rate has stabilised at an average of 85% between 2020/21 and 2022/23.

The Authority should be cautioned not to stagnate in its performance in this Programme, but to 7 339 improve performance.

The Registration programme was only established in the 2020/21 financial year and has recorded fluctuating performance over the past three financial years.
Comparative performance between 2018/19 and 2022/23 per programme ( 2 0 1 9 - 2 0 2 3 ) % 1 9 % 1 9 % 6 8 % 1 8 % 5 7 % 0 0 1 % 0 0 1 % 0 0 1 % 0 0 1 % 6 8 % 0 0 1 % 9 7 % 6 8 % 8 8 % 3 8 % 6 9 % 6 8 % 6 8 % 3 8 % 4 8 % 0 5 % 0 5 % 3 3 % 0 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 : : R E G I S T R A T I O N T O T A L 2018/19 2019/20 2020/21 2021/22 2022/23 5.2.Overall performance in 2022/23 Achieved 21 from 25 targets 84.0% Achievement rate The Authority has achieved 84% of its predetermined performance indicator targets at the end of the 2022/23 financial year (21 targets achieved from 25), which is a slight improvement in performance compared to an 83% achievement rate in 2021/22.
Note: In 2020/21, the Authority : 2 0 2 2 / 2 3 V S 2 0 2 1 / 2 2 % 1 9 % 1 8 % 0 0 1 % 6 8 % 8 8 % 3 8 % 3 8 % 4 8 % 0 5 % 3 3 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 : : R E G I S T R A T I O N T O T A L 2021/22 2022/23 8 340 split the Communication, Training and Registration Programme into two separate Programmes, namely Programme 3: Communication and Training and Programme 4: Registration.
The graph below illustrates PSIRA’s performance rate in 2022/23 compared to the previous financial year.

The performance of the Administration programme decreased from 91% in 2021/22 to 81% in 2022/23.

Similarly, the performance of the Communication and Training programme decreased from 88% in 2021/22 to 83% in 2022/23.

The performance of both the Law Enforcement Programme and Registration Programmes improved in 2022/23 compared to the previous financial year.
Although the percentage achievement in the Registration Programme is low, it represents the achievement of one target from a total of two targets.

5.3.Administration Programme Purpose: Provide leadership, strategic management and administrative support to the Authority.
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.

Achieved 9 out of 11 performance targets 81.8% Achievement Rate The Administration Programme achieved nine out of 11 performance targets, which is an achievement rate of 81.1%, which is a decline in performance compared to the previous financial year.
The two targets that were not achieved are: • 90% implementation of the approved Strategic Risk Mitigation Plan.

At the end of March 2023, 82% of the Plan was implemented (this is the second consecutive year in which this target was missed).

According to the Authority, delays were primarily encountered in the risk actions dealing with the appointment of the service provider for 9 341 the development of an online assessment platform because the bidder did not meet the minimum requirements.
• The Authority did not submit the Draft Transformation Charter for the Private Security Industry for approval.

Once approved the Transformation Charter not submitted to the Minister of Trade, Industry and Competition.
5.4.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.
Achieved 6 out of 6 performance targets 100% Achievement rate The Law Enforcement Programme achieved 100% of its predetermined performance targets at the end of the 2022/23 financial year.

In terms of performance, the following should be noted: • The Authority planned to inspect 5 325 security businesses to enforce compliance with applicable legislation.

At year-end, 7 236 security businesses were inspected resulting in an overachievement of 1 911 inspections.
• The Authority planned to inspect 27 930 security officers to enforce compliance with applicable legislation.

At year-end, 36 406 security officers were inspected resulting in an overachievement of 8 476 inspections.

• The Authority planned to inspect 1 650 security businesses licenced for firearms.

At year-end, 2 285 security businesses licensed for firearms were inspected resulting in an overachievement of 635 inspections.
5.5.Communication and Training Programme 10 342 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.

Achieved 5 out of 6 performance targets 83.3% Achievement rate The Communication and Training Programme achieved five out of six performance targets for 2022/23, which is an 83.3% achievement rate, and a decline compared to an 88% achievement rate of the previous financial year.

The Authority failed to have 20% of learners completing on-line external assessments.
At year-end, no learners completed the self-assessment due to the delay in the appointment of the on-line assessment service provider due to non-responsiveness on tenders.

It should be notated that in 2020/21, a concept document on online external assessment was approved and the initial target set for 2021/22.

In 2021/22, the target to have 20% of learners complete on-line self-assessments was also not achieved due to the service provider not being appointed to develop online assessment system.
The tender was re- advertised because the bidders did not meet the minimum requirements.

5.6.Registration Programme Purpose: Ensure the registration of industry businesses and security officers are done in accordance with the PSIR Act.

Measurable Objectives: The programme aims to ensure the private security industry is efficiently registered and transformed.
Achieved 1 out of 2 performance targets 50% Achievement Rate 11 343 The Registration Programme achieved one out of two performance targets, which is an achievement rate of 50%, which is an increase compared to achievement rate recorded in 2021/22.

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 2022/23 (also not achieved in 2021/22).
The average turnaround time achieved was 38 working days, which is a deviation of 26 days.

In 2021/22, the average turnaround achieved was 18 working days.

As such, the Authority is regressing on this target.

According to the Authority, implementation challenges with the launch of the digital platform also impacted on the turnaround time.

6.
6.

HUMAN RESOURCES At the end of March 2023, the PSIRA had 333 permanent staff members, of which most are attached to Law Enforcement (184 staff), followed by Finance and Administration (108 staff), Communication and Training (28 staff) and Registrations (13 staff).

PSIRA also employed 31 interns during the 2022/23 and 23 employees on a fixed-term contract.

Personnel expenditure constitutes 54% of the Authority’s total expenditure in 2022/22.
As at 31 March 2023, the average vacancy rate for the Authority was 6.58%, which is the same as the previous financial year.

The highest percentage vacancies were in the Finance and Administration Programme (14% vacancies).

During the 2022/23 financial year, 29 personnel left the employment of PSIRA, of which 17 employees resigned, one staff member was dismissed for misconduct, one staff member retired and one staff member passed away.

7.
7.

COMMITTEE OBSERVATIONS The Committee made the following key observations during the 2022/23 Annual Report hearing: Training: The Committee questioned whether cash-in-transit was included as part of training programmes and if so, what are the new challenges they are dealing with in terms of training that involves the environment of cash-in-transit.

PSIRA is intending to ensure that part of the online assessment in future will include cash-in-transit in the curriculum.
However, they have indicated that the challenges in terms of cash-in-transit are not related squarely on training.

12 344 Particularly, the cash-in-transit sector is in danger of creating monopolies in which a few companies transport excessive amounts of cash, which makes them more susceptible to robberies.
Criminal records: The Committee questioned whether PSIRA is frequently verifying the criminal records on those members that are registered after registration and also asked about the impact of criminality on the industry.

The Committee wanted to know what sanctions can be imposed, both on individual members found to have a criminal record, as well as on the companies that employ individuals with criminal records.
PSIRA stated that the issue of checking the criminal records after registration is assisting them as an organisation although there are some challenges impeding their mandate.

The PSIRA Amendment Act provides for the renewal of registrations which will entail the reassessment of criminal records, but the Amendment Act has not yet been operationalised and as such the section cannot be fully enforced.

Despite this, PSIRA is continuously checking the criminal records on all of those that are re-registering.
Arrests: The Committee noted that PSIRA mentioned that there were 991 arrests made for certain offenses, of which 859 was referred for prosecutions.

The Committee wanted to know if there were any convictions secures and on what type of offences.

In relation to this, the Committee requested PSIRA to elaborate on the outcomes on those cases.

PSIRA explained that the offenses were related to unregistered security guards and undocumented foreign nationals employed in the private security industry.
The outcomes of these action by PSIRA are prosecutions.

As it was mentioned in their report, they attained a 100% prosecution rate on the cases of security service providers that are non-compliant and fines were issued on those security companies.

PSIRA indicated that in the previous financial year there was an amount of R14 million in fines imposed on non-compliant security service providers.

There were approximately 203 security businesses registrations that were withdrawn due to non- compliance.
Compliance Inspections: The Committee wanted to know if PSIRA is conducting frequent inspections at private security companies to ensure that security officers are registered.

The Committee further wanted to know what steps are taken against those service providers who are employing unregistered security officers.

PSIRA indicated that they have conducted several inspections over the period under review to monitor compliance on the registration of security 13 345 officers.
PSIRA had established the Special Operation Unit that is working during weekends, public holidays, and at night to conduct operations, because most contraventions are committed during these periods as it is believed that PSIRA Inspectors are not working during weekends and at night.
PSIRA admitted that they have a challenge of under reporting of security guards employed and, as a result, they have advised the security officers to check themselves online if they appeared as unlinked and report this via the PSIRA hotline.

Firearms: The Committee noted that PSIRA was in the process to intensify the law enforcement operations particularly on firearm compliance.

The Committee wanted to establish if there were any convictions connected to firearm-related criminal cases.
PSIRA indicated that they did not have the information at hand and requested to submit a written response.

Irregular Expenditure: The Committee referred to the AGSA report on the audit outcomes of PSIRA that there was irregular expenditure of R79 million related to the non-adherence to Supply Chain Management controls and procedures.

The Committee wanted to know what are the corrective measures that are put in place to turn around the situation.
PSIRA explained that the issue arose out of the contract that they have entered into with a service provider that was delivering services in terms of the UIF project.

The UIF came to them with service providers that needed to be appointed to render these services as it was mentioned on the audit report.

One of the issues that had been identified and highlighted was that PSIRA failed to conduct due diligence on the process in terms of appointing the service providers.
The irregular appointment remains with them because they have a contract with the service providers.

PSIRA said that most of the irregular expenditure was related to the contracts they had with those service providers under the UIF project.

Payment for services not rendered: Related to the above, the Committee referred to the AGSA finding that was made against PSIRA on the payment of the service provider for services that were not rendered.
The Committee was extremely concerned about the payment of R30 million to a service provider for training that did not materialise.

PSIRA explained that there was an issue of the repayment of R30 million which the auditors subsequently cleared, however they still have some issue because of delays in the finalisation of the project.

PSIRA noted that they foresee a potential material loss of the repayment that was made to one of the service providers.
PSIRA provided the details of the project that started in 2019 but was 14 346 delayed due to the COVID-19 pandemic and subsequent lockdown.

The project has since resumed.

PSIRA indicated their commitment to ensure that due diligence will be done on any future appointments of service providers and that they will not rely on third parties.

PSIRA is closely monitoring the service provider in terms of the revised plan on training that should be completed by December 2023.
Appointment: The Committee asked PSIRA if it was normal procedure to allow another entity to dictate who should be appointed as the service provider.

PSIRA responded that it was not normal to allow another entity to dictate for them on the appointment of service providers.

The lapse occurred because they were supposed to conduct due diligence on what the UIF has followed in terms of the procurement process.

PSIRA assumed that the UIF had followed the due process.
Transformation: The Committee noted that PSIRA did not perform well on the areas that deal with transformation.

The Committee wanted to know the challenges they are experiencing and how this situation can be turned around to resolve the challenges.

PSIRA had conducted the transformation analysis for the entire sector and made some findings that sought to elevate the level of the proposed Transformation Charter.
PSIRA said that the process was very challenging because the skills and expertise of putting together the Charter are not readily available.

PSIRA attempted several times to go through a tender process, however they have identified some of the issues during the investigation on the sector transformation.

PSIRA stated that they envisage completion by the end of 2025.

8.
8.

COMMITTEE RECOMMENDATIONS The Portfolio Committee on Police recommends the following: 1) The Committee recommends that PSIRA should develop a curriculum that include training on the transportation of cash (cash-in-transit).
2) The Committee recommends that PSIRA should enhance its contract management system to follow appropriate supply chain management policies on the appointments of 15 347 the service providers, to avoid the occurrence of being ordered by the other entities in terms of who should be appointed to render the services.
3) The Committee recommends that PSIRA should strengthen its system to enforce compliance with the security businesses as well as the security office as prescribed by the regulations of the industry.

4) The Committee recommends that PSIRA should strengthen its internal controls and take effective steps to prevent irregular expenditure.
5) The Committee recommends that PSIRA should constantly verify the criminal records of security officers to ensure that the industry does not employ people with criminal records.

9.

CONCLUSION The Committee greatly appreciates the work that was done by the entity and noted the improvement made on certain aspects.

The Committee congratulated the entity for achieving an unqualified audit although there were findings that were made on their audit outcome.
The Committee encourages PSIRA to put more efforts in place to achieve all the set targets.

The Committee believes that the entity will work hard to improve the areas that were identified as a matter of concern by the AGSA.

PSIRA should strive towards achieving a clean audit in the next financial year.

The Democratic Alliance (DA) reserves their rights on the report.

Report to be considered.

16 348 10.


BUDGET REVIEW AND RECOMMENDATIONS REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE (IPID) PERFORMANCE FOR THE 2022/2023 FINANCIAL YEAR DATED 20 OCTOBER 2023.

The Portfolio Committee on Police, having considered the Annual Report and financial information of the Independent Police Investigative Directorate (IPID) for the 2022/23 financial year on 13 October 2023, 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).
Mandate of the Committee The mandate of the Committee therefore is to fulfil its constitutional function to: • Pass legislation; 1 349 • 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.

• 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 2022/23 financial year.

• Section 5: Performance overview.

This section provides an overview of Departmental performance on predetermined key performance indicators and targets during the 2022/23 financial year.

• Section 6: Committee observations.


This section provides a summary of observations made by Members of the Committee during the 2022/23 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) 2 350 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 3 351 • 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; 4 352 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.

3.

REPORT OF THE AUDITOR –GENERAL OF SOUTH AFRICA (AGSA) The IPID received an unqualified audit opinion with no material findings on the usefulness and reliability of the reported performance information, compliance with legislation, or internal control deficiencies.

This is the first clean audit obtained by the Department.

4.

FINANCIAL OVERVIEW 4.1.


Overall expenditure The IPID had a Final Appropriation of R363.5 million in 2022/23, of which R359.0 million was spent at year-end, which is 98.8% of the Final Appropriation (underspent with R4.5 million).

The main contributing factor for the recorded underspending was the high rate of vacancies that could not be filled.
Table 1: Appropriation statement 2022/23 Programme Appropriat R’000 ion Adjusted Final Actual Appropriat Appropriat Expendit ion ion ure Varian % ce Spent Administration 104 557 114 446 111 033 107 701 3 332 97.0% Investigation Information 231 675 Management 222 743 231 296 230 701 595 99.7% 5 353 Programme Appropriat R’000 ion Legal and Investigation 7 046 Advisory Services Compliance Monitoring 13 949 Adjusted Final Actual Appropriat Appropriat Expendit ion ion ure Varian % ce Spent 6 046 6 168 5 577 591 90.4% and Stakeholder Management Total 13 991 15 032 15 031 1 100.0% 357 227 357 226 363 529 359 010 4 519 98.8% Source: 2022/23 IPID Annual Report In terms of economic classification, the following should be noted: • The Department spent 95.9% of its Final Appropriation for Compensation of employees.
At year-end, the Department underspent with R9.5 million.

• Significant overspending was recorded on Advertising (+R1.7 million).

At year-end, the Department had spent 170.3% of its Final Appropriation on this item.

• Significant overspending was recorded on Payments for capital assets (+R5.0 million), of which the bulk was on vehicles (+R4.98 million).

At year-end, the Department had spent 137.0% of its Final Appropriation on vehicles.
The over-expenditure was offset by underspending of several other items, such as Compensation of employees (underspent with R9.5 million).

4.2.

Expenditure per programme Administration Programme: The Programme had actual expenditure of R107.7 million against a Final Appropriation of R111.0 million, which translated to 97.0% expenditure as a percentage of the Final Appropriation at year-end.

The Programme underspent with R3.3 million, mainly under Compensation of employees.
Programme 2: Investigation and Information Management: The Programme had actual expenditure of R230.7.0 million against a Final Appropriation of R231.2 million which translates to 99.7% expenditure as a percentage of the final budget at year-end.

The Programme 6 354 realised a significant overspending on vehicles (transport equipment) at year-end.

The Programme overspent with R5 million on this item and realised expenditure of 201.1% as a percentage of the final budget.
Programme 3: Legal and Investigation Advisory Services: The Programme had actual expenditure of R5.5 million against a Final Appropriation of R6,1 million, which translates to 90.4% expenditure as a percentage of the final budget at year-end.

Underspending was mainly under Compensation of employees – only 89.2% of the final budget for this item was spent at year-end.
Programme 4: Compliance Monitoring and Stakeholder Management: The Programme had actual expenditure of R15.0 million against a Final Appropriation of R15.0 million, which resulted in 100.0% expenditure at year-end.

The Programme recorded significant overspending on Advertising at year-end (overspent with R1.8 million / 182.4% of its available budget).
The overspending was offset by underspending on Compensation of employees on which only 83.3% of its available budget was spent (underspending of R1.8 million).

4.3.

Irregular expenditure The Department did not incur irregular expenditure during the 2022/23 financial year.

However, the Department has 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.

Unauthorised expenditure The Department did not incur any unauthorised expenditure in the 2022/23 (same as the three previous financial years).

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.

7 355 4.5.
7 355 4.5.

Fruitless and wasteful expenditure During the year under review, the IPID incurred R10 000.00 in fruitless and wasteful expenditure, of which no funds were recovered.

The Department has historic fruitless and wasteful expenditure of R382 000.00 from previous financial years.

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.
This was significantly less in the 2022/23 financial year, during which new claims to the amount of R3.7 million was registered.

At year-end, the IPID had a closing balance of R110.56 million in civil claims against the State.

The reduction of legal claims against the Department is at 36%.

According to the Department, the reduction was as a result of matters that were dormant for over three years.
Such matters were removed from the contingent liability list in line with the approved Contingent Liabilities Policy.

During 2022/23, the Department spent R17.6 million in liabilities that were paid, cancelled and/or reduced.

5.
PERFORMANCE OVERVIEW 120% 100% 80% 60% 40% 20% 0% 86% 55% 20% Administration PERFORMANCE ON TARGETS: 2020/21 to 2022/23 92% 92% 69% 100% 100% 75% 100% 100% 87% 94% 79% 73% Investigation and Information Management Legal and Investigation Advisory Services Compliance Monitoring and Stakeholder Management TOTAL 2020/21 2021/22 2022/23 8 356 Overall, the performance of the Department declined during the 2022/23 financial year, achieving 79% of its performance targets compared to the 94% overall achievement in the previous financial year.
Although the decline is across all Programmes, the largest decline is in the Administration Programme, which only achieved half of its performance targets.

5.1.

Programme 1: Administration The Administration Programme achieved five from nine performance indicator targets, which represents 55.5% of targets achieved, which a significant decline in performance from the performance recorded in the previous financial year.
Table 2: Achievement on Performance targets by the Administration Programme Percentage implementation Percentage implementation Percentage implementation of the Information and of the risk mitigation of Youth Development Communication strategies Strategy Technology (ICT) Strategy • Target: 70% • Target: 80% • Target: 60% • Achievement: 65% • Achievement: 92% • Achievement: 70% (17/26) (24/25) (35/50) • Deviation: -5% • Deviation: +12% • Deviation: +10% Reason for deviation: Reason for deviation: Reason for deviation: Target is not achieved due to Target exceeded due to Target is exceeded due to some of the mitigations implementation of catch-up additional funding that was being partially implemented, plan.
allocated to ICT projects.

dependency on external stakeholders and others were still at a planning phase.
Percentage vacancy rate per Percentage implementation Percentage representation year of annual Internal Audit of youth in the Department • Target: <10% Plan per year per year • Achievement: 9% • Target: 90% • Target: 19% (37/397) 9 357 • Deviation: 1% • Achievement: 97% • Achievement: 13% Reason for deviation: • Deviation: +7% • Deviation: -6% (31/32) (46/360) Target exceeded due to implementation of catch-up Reason for deviation: Reason for deviation: plan.
Target exceeded due to Target is not achieved due implementation of catch-up limited vacant posts at salary plan.

level 5-12 to attract youth.

The recruitment and selection process for 14 positions that became vacant from December 2022 was still in progress by end of the financial year.
Percentage representation Percentage representation Percentage procurement of of women at senior of persons living with goods and services from management service (SMS) disabilities in the women-owned enterprises per year Department per year per year • Target: 50% • Target: 3% • Target: 30% • Achievement: 57% • Achievement: 2% • Achievement: 26% (17/30) (8/360) (R19.7m/R75.2m) • Deviation: +7% • Deviation: -1% • Deviation: -4% Reason for deviation: Reason for deviation: Reason for deviation: Target achieved The recruitment strategy for A bulk procurement to the salary level 5 - 12 is value of R7.1 million of internal, thus no additional motor vehicles that were people with disability to be procured through the appointed.
Treasury RT Contract had an impact on the performance and none of the 10 358 service providers met the criteria.

5.2.

Programme 2: Investigation and Information Management The Programme achieved 12 from 13 performance targets in the 2022/23 financial year, which represents an achievement rate of 92.3%.

This is the same performance recorded in the previous financial year.
Most of the targets were exceeded at year-end because they were reduced in 2022/23 to account for the challenges experienced during the COVID-19 pandemic.

These targets were increased in the Department’s 2023/24 Annual Performance Plan (APP).

The target that was not achieved in 2022/23, was on the number of investigations of corruption that were decision ready.

The target was set at 70 cases of which 52 cases were completed (decision-ready) which is 18 cases less than planned.
According to the Department, the National Specialised Investigation Team (NSIT) will assist with the investigation of corruption cases to address the underperformance recorded in the 2022/23 financial year.
Table 2: Achievements on targets: Investigation and Information Management Programme Number of investigations of Number of investigations of Number of investigations of deaths in police custody death as a result of police discharge of an official cases that are decision ready action that are decision firearm by a police officer per year • Target: 80 ready per year that are decision ready per year • Achievement: 196 • Target: 240 • Target: 370 • Deviation: +116 • Achievement: 246 • Achievement: 498 • Deviation: +6 • Deviation: +129 Reason for deviation: During planning for the Reason for deviation: Reason for deviation: 2022/2023 targets were During planning for the During planning for the revised downward 2022/2023 targets were 2022/2023 targets were 11 359 considering the challenges revised downward revised downward that were being encountered considering the challenges considering the challenges during the COVID-19 that were being encountered that were being encountered pandemic; however, during the COVID-19 during the COVID-19 performance was optimised pandemic; however, pandemic; however, to ensure service delivery performance was optimised performance was optimised and reduction of backlog.
to ensure service delivery to ensure service delivery and reduction of backlog.

and reduction of backlog.
Number of investigations of Number of investigations of Number of investigations of rape by police officer that rape while in police torture that are decision are decision ready per year custody that are decision ready per year • Target: 30 ready per year • Target: 80 • Achievement: 101 • Target: 1 • Achievement: 148 • Deviation: +71 • Achievement: 4 • Deviation: +68 • Deviation: +3 Reason for deviation: Reason for deviation: During planning for the Reason for deviation: During planning for the 2022/2023 targets were During planning for the 2022/2023 targets were revised downward 2022/2023 targets were revised downward considering the challenges revised downward considering the challenges that were being encountered considering the challenges that were being encountered during the COVID-19 that were being encountered during the COVID-19 pandemic; however, during the COVID-19 pandemic; however, performance was optimised pandemic; however, performance was optimised to ensure service delivery performance was optimised to ensure service delivery and reduction of backlog.


and reduction of backlog.
Number of investigations of Number of investigations of Number of investigations assault that are decision corruption that are decision of other criminal and ready per year • Target: 2 000 ready per year • Target: 70 misconduct matters referred • Achievement: 2 565 • Achievement: 52 12 360 • Deviation: +565 • Deviation: -18 to in section 28 (1)(h) of IPID Reason for deviation: Reason for deviation: Act that are decision ready During planning for the Target is not achieved due to per year 2022/2023 targets were the complexity of corruption • Target: 30 revised downward cases and investigations • Achievement: 130 considering the challenges takes longer to complete.
• Deviation: +100 that were being encountered during the COVID-19 pandemic; however, performance was optimised to ensure service delivery and reduction of backlog.

Reason for deviation: During planning for the 2022/2023 targets were revised downward considering the challenges that were being encountered during the COVID-19 pandemic; however, performance was optimised to ensure service delivery and reduction of backlog.
Number of approved Number of investigations of Percentage of dockets systemic corruption cases offences referred to in referred to the National that are decision ready per section 33 of the IPID Act Prosecuting Authority that are decision ready per within 30 days of being year • Target: 1 year • Achievement: 2 • Target: 15 signed off per year • Target:90% • Deviation: +1 • Achievement: 30 • Achievement: 96% (1 • Deviation: +15 999/2 093) Reason for deviation: • Deviation: +6% Investigations for cases that Reason for deviation: were registered in the During planning for the Reason for deviation: financial year were 2022/2023 targets were prioritised and concluded.
revised downward 13 361 considering the challenges Target exceeded due to that were being encountered improved monitoring during the COVID-19 processed pandemic; however, performance was optimised to ensure service delivery and reduction of backlog.
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: 92% (2 132/2 318) • Deviation: +2% Reason for deviation: Target exceeded due to improved monitoring processed 5.3.

Case intake: 2022/23 During 2022/23, 5 274 cases were reported to the IPID, which is a decrease of 21 cases (statistically this is a decrease of 0%) compared to the previous financial year.
Of the total case intake, 4 969 cases involved the SAPS, 90 cases involved the MPS and four cases involved civilians.

14 362 The figure below shows changes in case intakes in the various categories in 2022/23 compared to the previous financial year.

Categories that recorded a decrease include, death in police custody (-1%), death as a result of police action (-4%), complaint of the discharge of an official firearm (-5%), assault (-2%) and non-compliance with section 29 of the IPID Act (-26%).
Cases of rape by a police officer increased by 23% and rape in police custody increased by 100% (four cases compared to two cases), torture increased by 19%, cases related to other criminal matters and misconduct increased by 16% and cases of systemic corruption increased by 100% (one case compared to nil in the previous financial year.
In 2022/23, the Western Cape Provinces recorded the highest number of cases (1 038 from 5 274), of which the majority of cases involved assault (851 from 1 038, representing 82% of the total provincial case intake).

The Gauteng Province recorded the second largest number of cases (976 from 5 274), followed by KwaZulu-Natal (644 from 5 274).
Table 3: Changes in annual intake of cases per category Annual intake 2021/22 2022/23 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 223 410 744 99 2 192 3 407 59 124 - 35 221 393 710 122 4 228 3 354 71 144 1 26 Total 5 295 5 274 Source: IPID 2022/23 Annual Report Percentage changes -1% -4% -5% +23% +100% +19% -2% +20% +16% 100% -26% 0% As in previous financial years, assaults remain the predominant category of cases (3 354 from 5 274), despite the overall number of cases decreasing slightly by 2%, it accounts for 64% of 15 363 all cases recorded by the IPID in 2022/23.
It should be noted that the IPID Amendment Act, 2023 (currently serving before Parliament) proposes that the category for assault be changed to only included assault with the intent to cause serious bodily harm.

Cases of death in police custody showed a slight decrease of 1% in 2022/23 compared to the previous financial year.

While some provinces recorded a decrease, the following provinces recorded increases: Eastern Cape (+23%), Gauteng (+30%), Limpopo (+28%), and Mpumalanga (+8%).
Most deaths in police custody was a result of injuries sustained prior to custody (80 cases) (leading to death while in custody), followed by natural causes (65 cases) and suicide by hanging (53 cases).

The IPID only reported one case of death in police custody due to police action involving a vehicle collision.

The number of suicides in police custody decreased by 15% in 2022/23 compared to the previous financial year.
According to the Department, items such as clothing and blankets were the main instruments used to commit suicide while in police custody.

In terms of deaths as a result of police action, 393 cases were recorded, which is a slight decrease of 4% compared to the previous financial year.

The 393 cases included 448 deceased persons, as one incident can lead to multiple deaths.

The Northern Cape Province recorded a decrease of 78% in 2022/23 compared to the previous financial year.
The largest percentage increase was recorded in the Limpopo Province (+16%).

Of the 393 incidents, 164 involved the death of a suspect during the course of a crime, and 117 incidents involved the death of a suspect during the course of arrest.

In terms of the latter, 10 suspects died as a result of assault, and 98 were shot with a service firearm.

It is concerning to note that 26 suspects were killed during the course of an investigation, of which one died due to suffocation.
During 2022/23, 9 people were killed during crowd management incidents, which is a significant decrease compared to the 21 persons fatally shot by police during crowd management incidents in the previous financial year.

In 2022/23, the IPID recorded 122 incidents of rape by a police officer, of which 43 rapes were perpetrated by officers on duty and 79 rapes by officers while off duty, which is an increase of 23% compared to the previous financial year.
The number of rape by a police officer while on duty decreases by 12%, while the number of rapes by a police officer while off-duty increased by 58%.

It is unclear whether the 122 incidents included a larger number of victims – as one 16 364 incident can involve multiple victims.

In 2022/23, four cases of rape in police custody were reported which is an increase of 100% (two additional cases).
The number of cases relating to other criminal matters and misconduct (not stipulated in the IPID Act) increased from 124 cases to 144 cases in 2022/23 compared to the previous financial year, which is an increase of 16%.

In 2021/22, these cases increase to 124 from 30 cases (313% increase).

This consistent increase is concerning.

The total active cases of the IPID as at the end of 2022/23 were 17 988 cases and 28 345 post decision ready cases.

Overall the IPID has a workload of 46 333 cases.


This is a significant backlog in cases still pending across various financial years.

The IPID should provide an age analysis of the backlog cases showing the oldest cases.

At the end of 2022/23, a total of 3 594 cases were closed, of which 1 823 cases were declined and 1 281 cases were closed undetected.

These two categories account for a total of 3 104 cases or 86% of the total number of cases closed during 2022/23.
Of the 3 594 cases closed in 2022/23, only 50 cases were done so with a conviction, which is 1.4% of all cases closed during this period.

5.3.1.

Criminal referrals to the NPA The IPID made 2 093 criminal referrals to the National Prosecuting Authority (NPA) for decision, of which 1 347 of referrals are still waiting for response, prosecution was declined for 684 cases, 53 cases were approved for prosecution and nine cases were withdrawn.
At the end of March 2023, a total of 56 criminal convictions were reported (three carried over from previous financial year), of which the majority was in cases of deaths in police custody (17 convictions), followed by deaths as a result of police action (13 convictions) and assault (12 convictions).

At the end of March 2023, the IPID was awaiting response from the NPA on 64% (which is an increase compared to 57.7% cases awaiting decision in the previous financial year).
The NPA took a decision on 737 cases (684 declined to prosecute plus 53 decisions to prosecute), of which the NPA declined to prosecute in 92.8% of cases.

Only 7.1% of cases on which the NPA took a decision were to prosecute.

17 365 5.3.2.
17 365 5.3.2.

Disciplinary recommendations to SAPS and MPS The IPID made 2 277 recommendations to SAPS during the period under review, which comprised of 794 recommendations where the IPID recommended to SAPS to discipline its member(s) (negative recommendations) and 1 483 recommendations where the IPID recommended no disciplinary action to SAPS members (positive recommendations).
Thus, in 65.1% of cases, no action was recommended to be taken against SAPS members and in 34.8% of cases, disciplinary actions were recommended Of the total referrals for disciplinary action (794), 191 disciplinary cases were initiated of which 116 led to a guilty verdict, 39 led to a not-guilty verdict, in 63 cases no steps were taken and seven cases were withdrawn.
During 2022/23, 257 disciplinary convictions were secured of which the majority led to a written warning (93), followed by dismissal (40%), final written warning (55), corrective counselling (17), verbal warning (20) and salary suspensions (32).

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.
The IPID made 43 recommendations to MPS during the period under review, which comprises of 17 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 (11/17), followed by the Johannesburg Metro Police Department (3/17) and the Durban Metro Police Department (52/17).
No recommendations were made to the City of Cape Town Metro Police Department and the Nelson Mandela Bay Metro Police Department.

5.4.

Programme 3: Legal and Investigation Advisory Services At the end of the 2022/23 financial year, the Legal and Investigation Advisory Services Programme achieved 3 from 4 performance targets, giving the Programme an achievement rate of 75%.
18 366 Percentage of legal advice provided to Percentage of legal advice provided to the investigators within 2 working days of Department within 30 working days of receipt per year (not achieved) receipt per year • Target: 95% • Target: 70% • Achievement: 92% (11/12) • Achievement: 100% (8/8) • Deviation: -3% • Deviation: +30% Reasons for deviation: Reasons for deviation: The performance was off track during the Target is exceeded due to the prioritisation second quarter due to the non-availability of of requests that were received.
responsible officials.

All requests received in other quarters were finalised within the timeframe.
Percentage of litigation matters referred Percentage of contracts and service level with instructions to the state attorney within agreements finalised within 30 working 10 working days of receipt per year days of request per year • Target: 100% • Target: 90% • Achievement: 100% (18/18) • Achievement: 100% (13/13) • Deviation: N/A • Deviation: +10% Reasons for deviation: N/A Reasons for deviation: Target is exceeded due to urgency of requests that were received.

5.5.
5.5.

Programme 4: Compliance Monitoring and Stakeholder Management At the end of the 2022/23 financial year, the Compliance Monitoring and Stakeholder Management Programme achieved 7 from 8 performance targets giving the Programme an achievement rate of 87.5%.
19 367 Number of formal engagements held with Number of media programmes held per key stakeholders per year year • Target: 166 • Achievement: 167 • Deviation: +1 • Target: 6 • Achievement: 6 • Deviation: N/A Percentage of recommendations referred Percentage of criminal referrals forwarded to the SAPS and MPS that are analysed per to the NPA that are analysed per year year • Target: 80% • Target: 80% • Achievement: 100% (1 887) • Achievement: 99% (2 089/2 090) • Deviation: +20% • Deviation: +19% Reasons for deviation: Target is exceeded due to regular Target is exceeded due to regular performance monitoring Reasons for deviation: performance monitoring Percentage of responses from the SAPS Percentage of responses from the NPA that and MPS that are analysed within 30 days are analysed within 30 days of receipt per of receipt per year • Target: 70% year • Target: 70% • Achievement: 79% (493/621) • Achievement: 95% (1 057/1 106) • Deviation: +9% • Deviation: +25% Reasons for deviation: Reasons for deviation: Target is exceeded due to regular Target is exceeded due to regular performance monitoring performance monitoring Number of station lecture awareness Percentage implementation of Access and training conducted per year Awareness Rural Strategy per year • Target: 40 • Achievement: 71 • Deviation: +31 • Target: 60% • Achievement: 29% • Deviation: -31% 20 368 Reasons for deviation: Reasons for deviation: Some activities Target is exceeded due to the SMS were delayed.
deployment programme to all provinces.

5.6.

Human Resource Management As at 31 March 2023, the Department had a total of 382 filled positions, against an approved establishment of 419 posts, which is a vacancy rate of 9%.

The largest number of vacancies remain in the Investigation and Information Management Programme (17 vacant positions).
The Department had a turnover rate of 6.6% in 2022/23 (24 employees left the employment of the Department and 41 employees were appointed or transferred into the Department).

The highest contributing factor was resignations (19).

Disciplinary action was taken against 12 employees during 2022/23, of which the sanctions included five final written warnings, three written warnings, one corrective counselling, two suspensions without pay and one dismissal.
The Department reported two injuries on duty during 2022/23.

6.

COMMITTEE OBSERVATIONS The Committee made the following observations: 1) The Committee welcomed the unqualified audit opinion without any material findings (clean audit), which shows that proper financial systems and internal controls were in place during the 2022/23 financial year.

Members commended the Department for this achievement.
Despite the audit outcome, Members indicated that this does not mean that the Department is free from serious challenges, especially in terms of capacity constraints to effectively deliver on its mandate.

2) Members noted the slight decline in the overall performance of the Department, especially in the Administration Programme, and questioned the root causes for the decline when compared to the previous financial year.
21 369 3) Members noted that the Department underspent on its budget allocation for Compensation of Employees (COE), yet the Department has insufficient capacity to manage its caseload.

Members further noted that funds were shifted from the COE budget allocation to that of Capital Assets to procure vehicles, and questioned whether this shift was approved by National Treasury.
The Department was further requested to explain the intended purpose of the vehicles that were procured in the 2022/23 financial year.

The Department indicated that the appointment of staff was delayed due to certain dependencies on other agencies for background and criminal record checks, which led to the underspending on the budget allocation for COE.

The Department further indicated that attrition rate of staff is high, which also impacts negatively on expenditure on COE.
The Department is currently reviewing its policy to reward employees, which will lead to improvements in the retention of staff members.

The Department indicated that the current vehicle fleet is old and needs replacement to ensure that Investigators have sufficient and serviceable vehicles to attend crime scenes and conduct investigations.
4) Members noted the significant overspending recorded on advertising at year-end and questioned whether these funds could not have been allocated to a different budget items where funds are needed such as COE for the appointment of additional Investigators.

The Department indicated that many posts were advertised throughout the 2022/23 financial year, which led to the overspending recorded on advertising.
The Department, in collaboration with the Department of Government Communication and Information Systems (GCIS), also embarked on a radio campaign which ran for three months to communicate the mandate of IPID and raise awareness on how to access IPID services, especially in rural areas.

The Department received positive feedback on the campaign from various stakeholders including the AGSA.
The Department stated that additional funds are needed to embark on further awareness campaigns to strengthen the IPID’s mandate and visibility.

5) Members noted the increase in civil claims against the Department during the 2022/23 financial year compared to the previous financial year and requested the Department to indicate the manner in which further increases will be stemmed and down-managed.
The Department noted that it is sighted as second respondents in many cases (not first 22 370 respondent) and further that contingent liabilities are being monitored.

The Department is reviewing its contingent liabilities register and dormant cases are being cleared.

The Department indicated that no funds are budgeted for contingent liabilities.
6) Members welcomed the funds allocated towards youth development, but requested additional details on the spending under this item and whether the desired outcomes are achieved.

The Department indicated that focus was placed on the employment of youth as interns.

7) Members raised concern about the increase in backlog cases and noted that the total caseload of IPID was in excess of 46 000 cases at year-end.
Members indicated that the IPID will not be able to down manage the active caseload with its current capacity and recommended that serious interventions must be made to assist the Department to effectively deal with new intakes and backlog cases.

Members requested the Department to provide an age breakdown of active cases and further that the Department conduct a needs analysis to assist the Committee to advocate for additional funding to the Department.
Members further indicated that capacity constraints will be ongoing for the foreseeable future.

The Committee suggested that the IPID must build their own pool of investigators to draw from in future.

The Department acknowledged that the backlog is growing but that it is employing retired detectives to address the backlog.

The Department stated that 60 per cent of its caseload are assault cases and that these are consuming the Department and its limited capacity.
The Department noted that its Expansion Strategy was presented to Committee previously and needs to be funded.

The Department stated that Investigators are currently appointed at Level 7 but that the suggestion to build an internal selection pool is an innovative way to address recruitment challenges and the Department will consider appointing junior investigators at lower salary levels.
8) Members noted that the bulk of the IPID’s intake is related to assault cases and requested a breakdown of cases relating to assault common and assault with the intent to inflict serious bodily harm.

Members highlighted that the Department’s limited resources could be used to investigate cases of corruption, which will have a greater impact on the achievement of performance indicators.
Members further asked whether 23 371 the Department is engaging with other government agencies to overcome some of their capacity challenges.

9) 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 referrals.

The Departments is continuously analysing dockets that are declined for prosecution to identify areas for improvement.
The Quality Assurance Framework has been developed and appointed quality assurers to assist and give guidance to investigators, but additional Quality Assurers must be appointed to address withdrawals and nolle prosequi cases.

The IPID is working jointly with the Investigative Directorate (ID) and the Directorate for Priority Crime Investigations (DPCI) to assist with complex corruption cases.
10) The Committee requested the Department to provide more detail on the incidences of rape in police custody and rape by police officers.

The Committee requested the Department to indicate the places where rapes were committed by police officers and requested a breakdown of the conviction rates for rape by a police member.

11) Members raised concern about the number of deaths in police custody of people who sustained injuries prior to detention.
Members questioned whether arrestees are not sent for medical attention when they have visible injuries during processing.

The IPID indicated that they are unable to respond to this question on behalf of SAPS.

The question has been forwarded to the SAPS for response.
12) Members questioned whether the IPID conducts any preventative visits to police detention cells as part as South Africa's National Preventive Mechanism under the Optional Protocol to the Convention against Torture and other Cruel, Inhumane or Degrading Treatment or Punishment (OPCAT).

The Department is conducting cell inspection as part of South Africa’s National Preventive Mechanism (NPM).

7.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS 7.1.
Recommendations to National Treasury 24 372 The Committee recommends the following: 1) The Committee recommends that National Treasury considers an increase to the IPIDs budget allocation over the medium-term to fund the Department’s Expansion Strategy, specifically for the appointment of IPID Investigators to improve the ratio between police officers and IPID Investigators.

Consideration should be given to the development of entry-level investigator posts.

7.2.
7.2.

Recommendations on service delivery performance The Committee recommends the following: 1) The Department should develop a comprehensive needs analysis to indicate the ideal number of Investigators needed to effectively deal with the Department’s active caseload.

This should include a review of the Department’s existing Expansion Strategy to find a balance between available funds and return on investments.
2) The Department should improve its budget baseline management to align it with existing fiscal pressures.

3) The Department should conduct spending reviews to monitor the efficient use of existing resources, such as ICT spending.

4) The Department should prioritise the filling of critical vacant posts.

5) The Department should have powers to enforce certain recommendations and/or be included in the SAPS disciplinary processes relating to investigations conducted by IPID.
6) The Department should reassess timelines of completion of investigations based on the types of investigations, complexities, and requirements.

This should be aligned to budget allocations across the Department’s Budget Programmes.

7) The Department should improve its marketing strategies to the public to bring about awareness of the role of IPID in police accountability.
8) The Department should continue its preventive inspection visits to police detention facilities/cells under South Africa’s OPCAT obligation as and part of South Africa’s NPM.

Progress on the implementation of recommendations should be submitted to the Committee by 01 February 2024.

Progress should also be presented to the Committee as part of the Department’s 2024/25 APP presentation during the 2024/25 budget hearings.

25 373 7.3.
25 373 7.3.

Reporting requirements The Committee requests the following information to be submitted: 1) The Department must provide a comprehensive age analysis of its active cases (total active caseload), including backlog cases.

The Committee would like to consider the oldest cases still open as well as the average completion time of cases in all categories under section 28 of the IPID Act, 2011.
2) The Department must provide a breakdown of assault cases in categories of assault common and assault with the intent to cause grievous bodily harm (GBH).

The report should further explain the manner in which the IPID distinguishes between the two categories of assault.

3) In terms of rape committed by members of the SAPS and MPS (on and off duty) and rape committed in police custody, the Department must submit a report on the success rate of prosecutions and convictions on the aforementioned cases.
The report should include possible reasons for low prosecution and conviction rates.

The requested reports must be submitted to the Committee by no later than 05 November 2023.

8.

CONCLUSION The Committee expresses 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 2022/23 financial year.
The Committee encourages the Department to improve its performance during the 2023/24 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.

The Democratic Alliance (DA) reserves their rights on the report.

Report to be considered.

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