Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698140396915.pdf (South Africa)
Thursday, 17 October 2019] No 83 – 2019] FIRST SESSION, SIXTH PARLIAMENT 1 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA ____ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS ____ THURSDAY, 17 OCTOBER 2019 TABLE OF CONTENTS TABLINGS National Assembly 1.

Minister of Environment, Forestry and Fisheries ................................................. 1 National Council of Provinces 1.
Chairperson ........................................................................................................ 2 COMMITTEE REPORTS National Assembly 1.

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Public Service and Administration ...................................................................... 2 Public Service and Administration .....................................................................21 Public Service and Administration .....................................................................34 Social Development ...........................................................................................62 Police .............................................................................................................. 106 Police .............................................................................................................. 149 Police .............................................................................................................. 164 Police .............................................................................................................. 183 TABLINGS National Assembly 1.
The Minister of Environment, Forestry and Fisheries (a) Regulations relating to domestic trade in rhinoceros horn belonging to the species black rhinoceros and white rhinoceros, made in terms of section 97 of 1 2 the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004) (the Act); (b) Government notice prohibiting the carrying out of certain restricted activities involving rhinoceros horn belonging to the species black rhinoceros and white rhinoceros, developed in terms of section 57 of the Act; and (c) Amendment of the Alien and Invasive Species lists 2016, published under Government Notice No 864 in Government Gazette No 40166 of 29 July 2016, and the list of Critically Endangered, Endangered, Vulnerable and Protected Species, published under Government Notice No R151 in Government Gazette No 29657 of 23 February 2007, in terms of section 72 of the Act.
Referred to the Portfolio Committee on Environment, Forestry and Fisheries.

National Council of Provinces 1.

The Chairperson (a) NOTICE OF INTERVENTION ISSUED IN TERMS OF SECTION 139(1)(c) OF THE CONSTITUTION, 1996 TO MAMUSA LOCAL MUNICIPALITY, NORTH WEST.

Referred to the Select Committee on Cooperative Governance and Traditional Affairs, Water and Sanitation and Human Settlements for consideration and report.

COMMITTEE REPORTS National Assembly 1.


BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR): DEPARTMENT OF PLANNING, MONITORING AND EVALUATION (DPME), AND BRAND SOUTH AFRICA: VOTE 8 DATED 16 OCTOBER 2019 1.

BACKGROUND The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly as mandated by Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.
9 of 2009 to consider and report on the Annual Reports of the Department of 3 Planning, Monitoring and Evaluation (DPME) and Brand South Africa tabled by the Minister of Planning, Monitoring and Evaluation as follows: 2.

INTRODUCTION Parliament derives its mandate from the Constitution of the Republic of South Africa.

The strategic objectives of the Portfolio Committee are informed by five strategic goals of Parliament.
The functions of the Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation are as follows:  Participating and providing strategic direction in the development of the legislation and thereafter passing the laws;  Conducting oversight over the Executive to ensure accountability to Parliament towards achieving an effective, efficient, developmental and professional public service;  Conducting public participation and engaging citizens regularly, with the aim to strengthen service delivery; oversee and review all matters of public inter est relating to the public sector;  Monitoring the financial and non-financial aspects of departments and its entities and ensuring regular reporting to the Committee, within the scope of accountability and transparency;  Supporting and ensuring implementation of the Public Service Commission (PSC) recommendations in the entire public service  Participating in international treaties which impact on the work of the Committee.
3.

PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations on forward use of resources.
The BRRR is also a source document for the Committees on Appropriations when considering and making recommendations on the Medium Term Budget.

3 4 Moreover, 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.

3.1 Method The Portfolio Committee on Public Service and Administration compiled the 2018/19 BRRR using the following documents:  The National Development Plan: Vision for 2030.

 Medium Term Strategic Framework 2015-2020.

       State of the Nation Address 2018.


Strategic Plans of the DPME and Brand SA.

National Treasury (2019) 4th Quarter Expenditure Report 2018/19 Financial Year, Pretoria.

Annual Performance Plans of the DPME and Brand South Africa 2018/19.

Annual Report of the DPME and Brand South Africa 2018/19.

Auditor-General South Africa’s outcomes of audit findings 2018/19.

The Portfolio Committee also met with the leadership of the Department and Brand South Africa.

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4.

NATIONAL DEVELOPMENT PLAN VISION 2030 The Department of Planning, Monitoring and Evaluation supports the National Development Plan’s objective of a government that is accountable and transparent.

The Department’s focus is on strengthening accountability and improving coordination, and it works with the National Planning Commission to facilitate and monitor the implementation of the National Development Plan.
The Department is responsible for mainstreaming the National Development Plan into the work of Government by drafting the Medium Term Strategic Framework to guide Government’s programme.

The strategic framework includes 14 outcomes, which form the basis of the new performance agreements between the President and individual Members of Cabinet.

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5 5.

MANDATE OF THE DEPARTMENT OF PLANNING, MONITORING AND EVALUATION The mandate of the Department of Planning, Monitoring and Evaluation is derived from section 85(2)(c) of the Constitution which provides the President to exercise authority over Members of Cabinet by coordinating the functions of state departments and administration.

The primary aim of the Department is to improve government service delivery through planning, performance monitoring and evaluations.
The DPME has the following key mandate:  Facilitating the development of plans/delivery agreements for cross-cutting priorities or outcomes of Government, and monitor and evaluate the implementation of these plans/delivery agreements.

 Putting in place and managing guiding frameworks for strategic planning and annual performance planning in national and provincial departments.

 Monitoring the performance of individual national and provincial government departments and municipalities.
 Monitoring frontline service delivery.

 Managing the Presidential Hotline.

 Carrying out evaluations.

 Promoting good monitoring and evaluation practices in Government.

5.1 Department’s priorities over the medium-term The priorities for the 2018/19 Annual Performance Plan of the Department of Planning, Monitoring and Evaluation are informed by the National Development Plan as translated in the Medium Term Strategic Framework (MTSF) for 2014-2020.
The DPME has, through its outcomes monitoring and evaluation work, developed a number of monitoring and evaluation tools to fulfil the functions below:  Facilitating the development of plans or delivery agreements for the cross- cutting priorities or outcomes of Government.

 Assessing departmental Strategic Plans and APPs to determine and enhance their alignment with the NDP, MTSF, Delivery Agreements and the budget.

 Monitoring and evaluating the implementation of service delivery agreements.
 Monitoring the performance of individual national and provincial government departments and municipalities.

5 6  Monitoring frontline service delivery across the public service.

 Managing the Presidential Hotline.

 Carrying out evaluations.

 Promoting good monitoring and evaluation practices in Government.

 Providing support to service delivery institutions to address blockages in delivery.

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6.

DEPARTMENT’S PROGRAMME PERFORMANCE 6.1 Department of Planning, Monitoring and Evaluation 6.1.1 Budget Allocated and Expenditure 2017/18 The budget appropriated to the Department of Planning, Monitoring and Evaluation for 2018/19 financial year was R958 035 million.

Expenditure for the department was R874 754 million for all the programmes which is an estimated of 91.3% budget spent.

The variance was R83 281.


The Department’s under-expenditure was realised on compensation of employees due to delays in implementing revised organisational structure.

Under-expenditure on payments for goods and services and capital assets was primarily due to delays in securing additional office accommodation for the Department under Programme 1 and a surplus on wave of the National Income Dynamics Study under Programme 6, which impacted on expenditure on consultants in 2018/19.
In 2018/19 financial year, the Department had no rollovers and virement requested.

During the year under review the Department reported R1 035 million on fruitless and wasteful expenditure related to ICT systems development and travel.

R330 000 was still under investigation as at 31 March 2019.

The Department reported irregular expenditure of R375 000 related to travel and conferences, and R152 000 was still under investigation.
The Department’s 3-year Human Resource Plan, which is aligned to the new organisational structure, was approved and is being implemented and monitored.

The Department filled 88 posts in the 2018/19 financial year and managed to reduce the vacancy rate from 21% in March 2018 to 11.4% in March 2019.

The Department experienced challenges in the turn-around times to fill vacant posts as a result of the non-availability of selection committee members due to their busy schedules.
The Department was not able to maintain a low vacancy rate of 10% or below throughout the reporting period due to the fact that the staff establishment increased as a result of the revised organisational structure.

7 As part of workplace skills plan to ensure highly skilled staff is retained, the Department created 607 training opportunities to empower and upskill its employees.

The Department awarded bursaries to 41 employees.


In achieving 50% representation of females in Senior Management Service (SMS) and increasing the percentage of people with disabilities, female representation was at 58.6% and 47.7% females occupying SMS positions, respectively.

The percentage of women in SMS is still below the acceptable norm of 50%.

Achieving disability representation at SMS level remains a challenge despite efforts to attract disabled candidates.
The Department has reduced staff turnover as compared to the previous years from 21% in March 2018 to 12% in March 2019.

Table 1: Appropriation per programme (R’000) Programme R'000 Final Appropriation Actual Expenditure Variance/Over or under-expenditure Shifting of funds Virement 1.

Administration 170 840 151 077 19 763 2.National Coordination Planning 81 470 63 920 17 550 3.

Sector Monitoring 62 235 45 319 16 916 4.

Public Sector Monitoring & Capacity Development 44 786 36 969 5.
Frontline Monitoring 63 317 59 077 7 817 4 240 6.

Evidence and Knowledge Systems 46 763 34 104 12 659 7.
National Development Youth 488 624 484 288 4 336 Total 958 035 874 754 83 281 Source: DPME Annual Report 2018/19 6.1.2 Programme Performance - - - - - - - - - - - - - - - - The Department has seven programmes in 2018/19 financial year organised as follows: 6.1.2.1 Programme 1: Administration The main objective of the programme is to provide strategic leadership, management, administrative, financial and human resource services to enable the Department to achieve its strategic and operational goals.
The programme’s key focus is to implement revised organisational structure and recruitment of key personnel, improve the quality of performance information, maintain good financial management practices to sustain clean audit outcomes and strengthen communication around the National Development Plan.

7 8 Programme 1 has spent R151.1 million of the allocated budget of R170.8 million, which is an estimated 88.4% in 2018/19 financial year.
Programme 1 under-spent on sub-programme: Corporate Services and Financial Administration with R11.3 million, Departmental Management with R2.9 million and Ministry with R5.6 million.

The total amount of under- expenditure was R19.7 million.

The programme had seventeen (17) predetermined targets.

Of total targets, the Department achieved thirteen (13) targets and four (4) were not achieved.

The average vacancy rate was at 11.4% and was above the 10% acceptable norm in the public service.
The target was not achieved due to delays in filling some senior management posts in the sixth Administration.

The Department developed a recruitment plan to fast track the appointment process.

The Department appointed 6.9% (30 out of 430) of interns to expose graduates to the workplace and to generate a pool of candidates for filling of entry level posts.

A total of 325 out of 341 employees submitted performance agreements to the Human Resource division.
Of 317 staff, 304 employees submitted performance assessments to the Human Resource division.

The Department submitted the Annual Performance Plan to the National Treasury timeously, but not tabled in Parliament as per required schedule due to communique to table Annual Performance Plans (APPs) after the adoption of the Fiscal Framework by the sixth Administration.

Four quarterly performance reports were submitted to the Executive Authority and National Treasury within 30 days at the end of the quarter.
An annual communication plan was produced, but not approved by the Accounting Officer.

Section (1) (f) of the Public Finance Management Act, states that, “accounting officer of a department must settle all contractual obligations and pay all money owing, including intergovernmental claims, within the prescribed or agreed period”.

In view of the above, the Department achieved 100% of the payment of valid invoices within 30 days.

In fact, the Department processed payment to suppliers within 7 days.
The Department achieved 95% of Senior Management Service (SMS) disclosing financial interest in terms of Chapter 3, C.1 of the Public Service Regulations (PSRs), to their respective Executive Authorities (EAs), particulars of all their registrable interests (e.g.

companies and properties) not later than 30 April each year, in respect of the period 1 April of the previous year to 31 March of the current year.
6.1.2.2 Programme 2: National Planning Commission The purpose of the programme is to facilitate and coordinate macro and transversal planning across government and coordinate planning functions in the Department.

The key objective of 9 the programme is to institutionalise planning across government by providing guidance on short, medium and long term planning to support the implementation of the National Development Plan Vision 2030.
In addition, the programme supports the work of the National Planning Commission (NPC).

The key focus of the Department on the programme was to finalise a framework on the institutionalisation long term planning.

Furthermore, the programme must finalise the revision of planning frameworks and ensure the alignment of strategic plans, annual performance plans and Medium Term Expenditure Framework (MTEF) budget allocations with the Medium Term Strategic Framework (MTSF) priorities.
In addition, the Department continued to work with the Department of Rural Development and Land Reform (DRDLR) to finalise the transfer of the spatial planning Programme.

The Department has been working on developing the National Spatial Development Framework (NSDF) with support from the National Planning Commission in order to guide the development of sub-frameworks.
The Department worked in collaboration with National Treasury to ensure that the national budget is directed towards the National Development Plan (NDP)/MTSF priorities.

The Department was tasked to develop and implement planning frameworks to align strategic plans and annual performance plans to the frameworks and ensure the prioritisation of resources.
The Department also conducts socio-economic impact assessments on new and existing legislation and regulations to ensure alignment with the NDP to mitigate unintended new policies.

Programme 2 has spent R45.3 million of the allocated budget of R62.2 million, which is an estimated at 78.5% in the 2018/19 financial year.

The Department had fourteen (14) predetermined targets.

Of all targets, ten (10) were achieved and four (4) not achieved.
The Department had not achieved these targets: the Integrated Planning Bill, which was not finalised by March 2019, the National Spatial Development Framework and Annual Budget Mandate Paper.

The Department developed guidelines for the development of the NDP 5-year implementation plan.

Furthermore, a guideline for integrated planning was developed and an assessment report on the review of the planning cycles.

The Department achieved four research projects in support of the NPC.
The Department submitted assessment reports on the second draft Annual Performance Plans to 45 national departments.

Assessment includes the Annual Performance Reports of the departments in all nine provinces.

The Department issued Guidelines for Quarterly Performance Reporting in both the national and provincial departments.
9 10 6.1.2.3 Programme 3: Sector Planning and Monitoring The purpose of the programme is to ensure government policy coherence and to develop, facilitate, support and monitor the implementation of sector plans and intervention strategies.

The programme consists of the following two sub-programmes: Management: Sector Planning and Monitoring; Sector Monitoring and Intervention Support.
The purpose of Sub-programme Sector Monitoring and Intervention Support is to provide support to sector planning functions and ensure government policy alignment in its goals.

Also to facilitate, support and monitor the implementation of the MTSF, sector plans and of intervention strategies in priority areas.

Programme 3 has spent R45.3 million of the allocated budget of R62.2 million, estimated at 72.8% in 2018/19 financial year.
The Department had ten (10) predetermined targets, nine targets were achieved and one (1) was not achieved.

One target not achieved under Programme 3 was on comprehensive progress report on the implementation of outcomes of the Inter-Ministerial Committees which was not compiled.

The Inter-Ministerial Committees on Distressed Mining Towns meeting not being held in the quarter resulted in the report not being produced as planned.
The Department reviewed and approved guidelines for the Programme of Action (POA) Monitoring System.

The revised POA guidelines were utilised in the development of quarterly MTSF progress reports used at the Implementation Forums.

The Department reviewed and approved guidelines for Outcomes Co-ordination.

A total of 24 MTSF Outcomes reports have been produced and presented to Cabinet.
The Department has developed a framework for monitoring the State Owned Enterprises (SOEs) and Development Finance Institutions (DFIs).

The Department was responsible to coordinate and monitor government departments in implementing projects and fast-tracking services through Operation Phakisa.

The Department produced four (4) comprehensive Operation Phakisa Integrated Progress reports.
With regard to the Distressed Mining Communities, the Department pro duced three comprehensive progress reports in a form of briefing notes on Special Presidential Package for the Revitalisation of Distressed Mining Communities and Labour sending areas.
6.1.2.4 Programme 4: Public Sector Monitoring and Capacity Development 11 The purpose of the programme is to support the implementation of the NDP/Medium Term Strategic Framework (MTSF) by monitoring and improving the capacity of state institutions to develop and implement plans and provide services.

The programme has three sub-programme which are Public Service Monitoring and Support, Local Government Monitoring and Support, and Capacity Development.
Programme 4 spent R36.9 million of the allocated budget of R44.8 million, estimated at 82.5% of 2018/19 financial year.

The programme had six (6) predetermined targets and all were achieved.

Among targets achieved was four MTSF outcomes reports produced and submitted to Cabinet and six public entities and SOEs performance analysed based on the approved framework.
The Department approved a report on submission of Directors-General Performance Agreements adhering to Heads of Department Performance Management and Development System (HPMDS).

Monitoring adherence of payment of suppliers within 30 days in the public service remain the responsibility of the Department.

A total of four monitoring reports on the payment of 30 days to service providers in the public service were produced on a quarterly basis.
The Department achieved 100% of targets in the Planning Monitoring and Evaluation capacity development.

6.1.2.5 Programme 5: Frontline and Citizen-Based Service Delivery Monitoring The purpose of the programme is to facilitate service delivery improvements through frontline and citizen-based monitoring and effective resolution systems.

The programme is made of the following Sub-Programme: Citizen Based Monitoring, Executive Support Monitoring and Presidential Hotline.
Programme 5 spent R59.1 million of the allocated budget of R63.3 million, estimated at 93.3% in the 2018/19 financial year.

The Department had five (5) predetermined targets for the financial year.

Of the five total targets, four targets were achieved and one was not achieved.

The Frontline Service Delivery Monitoring (FSDM) programme aims to strengthen monitoring and evaluation practices of field-level managers.
The main aim of the FSDM was to demonstrate the value of on-site monitoring to selected types of facilities sectors.

A total 412 monitoring visits were conducted by the Department in various government facilities.

The primary aim of the Citizen-Based Monitoring (CBM) programme is to support government to strengthen the voice in monitoring service delivery.

It focuses on the experience of citizens in relation to government performance in order to improve accountability and service delivery.
Four government institution were supported through Citizen-Based Monitoring.

11 12 The Department is responsible for managing the Presidential Hotline on behalf of the Presidency and supporting citizen and community-based monitoring.

A total of 95% of targets in the Annual Presidential Hotline Enhancement Plan was achieved.

The Department intended to conduct 20 visits and to produce area profiles/briefing notes/report on Siyahlola and Izimbizo on a quarterly basis.
The Department undertook 20 visits and produced area profile/briefing notes on Siyahlola and Izimbizo.
6.1.2.6 Programme 6: Evidence and Knowledge Systems The purpose of the programme is to coordinate and support the generation, collation, accessibility and timely use of quality evidence to support performance monitoring and evaluation across government; coordinate and support the generation, collation, access and timely use of quality evidence to support Performance Monitoring and Evaluation across government.
Programme 6 spent R34.1 million of the allocated budget of R46.8 million, estimated at 72.9% in the 2018/19 financial year.

The programme had seventeen (17) targets for the financial year.

Thirteen (13) targets were achieved and four (4) were not achieved.

Targets not achieved include 2019-20 National Evaluation Plan, which was deferred for consideration by the 6th Administration to ensure it is aligned with the MTSF 2019-2024.

Two evaluation reports were not produced.


Moreover, the Department was unable to produce three (3) SOE Evaluation Plans.

Development Indicators for 2017 report was not published and the 2018 Development Indicators dataset was also not produced.

Eight improvement plans were produced from National Evaluation Plan and five Provincial Evaluation Plans covering 2018/19.

The Department verified sixty (60) Department Evaluation Plans as per MPAT assessment.
In addition, the Department produced Ministerial Implementation Forums and Technical Implementation Forums and Gender Response Evaluations.

Three National Income Dynamics Study (NIDS) research papers were developed and accessible through the DPME knowledge hub.

Moreover, the Department developed fourteen (14) papers and disseminated through the DPME website.
6.1.2.7 Programme 7: National Youth Development Programme Note: Programme migrated to new department in 2019/20 The purpose of the programme is to oversee youth development policy and its implementation and transfer funds to the National Youth Development Agency (NYDA).

The programme 13 consists of the following sub-programmes; National Youth Development, Youth Development Programmes and National Youth Development Agency.
The sub-programme: NYDA is a conduit for the transfer of budget to the National Youth Development Agency.

Programme 7 spent R484.3 million of the allocated budget of R488.6 million, estimated at 99.1% in the 2018/19 financial year.

The Department had two (2) predetermined targets, and all were achieved.

The Department produced four National Youth Policy monitoring reports and mid-term evaluation report.

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7.

BRAND SOUTH AFRICA 7.1 Mandate of Brand South Africa Brand South Africa (BSA) was established as a trust in 2002 and gazetted as a schedule 3A public entity in accordance with the PFMA No.1 of 1999.

Its purpose is to develop and implement a proactive and coordinated international marketing and communications strategy for South Africa; to contribute to job creation and poverty reduction; and to attract inward investment, trade and tourism.
BSA aims to make an indirect contribution to economic growth, job creation, poverty alleviation and social cohesion by encouraging local and foreign investment, tourism and trade through the promotion of the Nation Brand.

BSA develops and implements a proactive and coordinated international marketing and communications strategy for South Africa to contribute to job creation and poverty reduction, and to attract inward investment, trade and tourism.
7.2 Budget allocated and expenditure 7.2.1 Summary and Analysis of Annual Financial Statements Budget allocated to Brand South Africa was R201.8 million and with expenditure of R210.8 million.

Brand South Africa incurred fruitless and wasteful expenditure of R1.5million.

The majority of the disclosed fruitless and wasteful expenditure for the current year is prepayment of talent modules system (HR system) not implemented , related to Brand SA.
Brand South Africa further incurred irregular expenditure in the prior year for two items amounting to R13 537 million.

The overall staff vacancy rate was 14%.

The turnover rate is above 10% threshold, the increase in the vacancy rate is due to a combination of factors such as dismissals and the 13 14 moratorium on new appointments for the eight vacant positions, due to proposed reconfiguration process.

The overall turnover rate was 17.82% inclusive of two dismissals.
With Executive Committee (Exco) staff turnover rate at 44% due to one resignation and one dismissal.

In terms of gender representivity in Brand South Africa, 69.23% of staff is female and male was 30.77%.

At the management level, female employees are at 52.38%.

The entity currently has one employee with a disability, which translates to 2% of the people living with disability.
In an effort to increase the number of people living with disabilities in the workforce, a database of service providers that deal with such recruitments is in place.

7.2.2 Programme Performance The BSA has three programmes which are as follows: 7.2.2.1 Programme 1: Administration The programme seeks to provide management and leadership to develop standardised format of guidelines and templates to strengthen the means of verification and collecting and reporting on performance information.
The programme had six predetermined targets for 2018/19 financial year.

Of total targets, five was achieved and one not achieved.

7.2.2.2 Programme 2: Brand marketing and reputation management The programme seeks to develop and articulate a Nation Brand identity that will advance South Africa’s long-term reputation and global competitiveness.
This includes a focus to research and monitor sentiment and performance of the National Brand to analyse trends and provide insights to inform decision making and communication; and then to both proactively and reactively communicate the country’s value proposition, values and highlight progress being made.

The programme had eighteen predetermined targets in 2018/19 financial year.

All targets were achieved.


7.2.2.3 Programme 3: Stakeholder relationships The programme seeks to build and leverage collaborative partnership, to participate, to integrate and coordinate efforts and approaches to market the Nation Brand identity and promote the Nation’s value proposition and to interface meaningfully with stakeholders who drive or influence the Nation Brand and its reputation.

The programme had seven predetermined targets.

8.


AUDITOR-GENERAL OUTCOMES 8.1 Predetermined objectives 15 The Auditor-General (AG) audited the financial statements of the Department of Planning, Monitoring and Evaluation comprising of appropriation statement, the statement of financial position as at 31 March 2019.

The financial statements are in accordance with Modified Cash Standards prescribed by National Treasury and the requirements of the Public Finance Management Act (PFMA).
8.1.1 Predetermined objectives The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: National Planning Coordination, Frontline Monitoring, Evidence and knowledge systems and National Youth Development.
8.1.2 Achievement of planned targets The AG referred to the annual performance report on page (s) 29 to 66 for information on the achievement of planned targets for the year under review and explanations provided for the achievement of a number of targets.

8.1.3 Adjustment of material misstatements The AG identified material misstatements in the annual performance report submitted for auditing on the reported information.
These material misstatements were on the reported performance information of programme 2: National Planning Coordination, Programme 5: Frontline Monitoring and Programme 7: National Youth Development.

The management of the department subsequently corrected the misstatements.

The AG did not identify any material findings on the usefulness and reliability of the reported performance information.
8.1.4 Compliance with legislation The AG performed procedures to obtain evidence that the Department of Planning, Monitoring and Evaluation had complied with applicable legislation regarding financial matters, financial management and other related matters.

The AG did not identify any instances of material non- compliance with specific matters in key legislation.
8.1.5 Internal Controls 15 16 Internal controls in the department were considered to be relevant to AG audit of the financial statements, reported performance information and compliance with applicable legislation.

The AG did not identify any significant deficiencies in internal control.

9.
9.

OBSERVATIONS AND KEY FINDINGS The Committee made the following observations and findings: The Department 9.1 The Portfolio Committee notes that the Department of Planning, Monitoring and Evaluation (DPME) achieved clean audits in the consecutive years.

9.2 The Department of Planning, Monitoring and Evaluation achieved 95% of the planned targets.
The Committee notes an explanation provided by the DPME that more additional responsibilities were given through the work of the Inter- Ministerial Committees and North West Province section 100 intervention which had an impact on the Department achieving 100% set targets.

9.3 In terms of the Integrated Planning Framework Bill, the Committee notes progress made thus far with regard to the consultation processes.
The Bill seeks to stabilize and ensure synergy in government planning across three spheres of government.

The Committee urged the Department to find amicable solutions with regard to the objections raised by South African Local Government Association and Western Cape province on certain aspects in the Bill.

9.4 The Committee welcomes and notes finalisation and Cabinet approval of the 25 Year Review of government to be launched by the President and published on the website in due course.
The 25 Year Review document will this time around propose future plans and developments in relation to how government should provide services.

9.5 The Committee further notes the delay in the approval of the Mandate Paper due to the National Election 2019 and is awaiting the sixth administration to set priorities for the five-year term of government.

Mandate Paper is approved by the Ministerial Committee on Budget (MINCOMBUD) before implementation.
17 Mandate Paper is a planning framework aimed at ensuring integration, better alignment between the budget, Government Programme of Action and Medium - Term Strategic Framework.

9.6 The Committee notes the delays in transferring Spatial Planning Land Use Management Act (SPLUMA) and Spatial Planning function to the National Planning Commission, which was under the former Department of Land and Rural Development.
The Committee notes that the matter was before Cabinet on 08 October 2019 to make a determination.

Decision to be made on 16 October 2019 on the future of SPLUMA.

9.7 The Committee recognises the role played by the DPME and the Director-General in the Presidency in assessing performance of the Directors-General and Heads of Department in the public service.
Monitoring adherence of the timeframes encapsulated in the approved Policy on Performance Management and Development System for Senior Management was welcomed by the Committee as part of inculcating culture of performance in the public service.

9.8 The reduction of vacancy rate was commendable, however, the Department was encouraged to maintain acceptable vacancy rate in the public service.
9.9 The Committee welcomes the Department’s commitment to employ youth into internship programme to expose graduates to the workplace and to generate a pool of candidates for filling entry level positions.

9.10 Payment of suppliers within 7 days other than prescribed 30 days was welcomed and commendable.
The Committee urged the Department to monitor the implementation of the 30-day payment of valid invoices to suppliers in the entire public service and to share lessons on how to process payments timeously.
9.11 The Committee welcomes the undertaking by the Department to develop a strategy to minimize litigation costs to Government, on which it would report and present to Parliament Brand South Africa 17 18 9.12 The Committee notes the role of Brand South Africa in protecting the image and reputation of the country in order to attract and tourism and trade and to ensure competitiveness.
However, the Committee appeals to Brand South Africa to ensure balanced reporting in terms of indicators used by organisations like the World Economic Forum, the World Bank, Amnesty International and the Mo Ibrahim Foundation.

9.13 The Committee notes the vacancy rate at 14% in the 2018/19 financial year, and the staff turnover above 10% threshold due to moratorium on filling posts.

9.14 Brand South Africa met a target to employ 2% of people with disabilities in the agency.

which translate to 1 employee.


The Committee urged Brand South Africa to commit in appointing more people with disabilities.

9.15 The Committee was disappointed about the payment of suppliers in Brand South Africa after 56 days in 2018/19 financial as compared to 26 days in 2017/18 financial year.

The Committee will monitor such regulatory compliance on a quarterly basis to ensure payment of valid invoices within 30-days.
9.16 The Committee was disappointed about the Auditor-General audit outcomes at Brand South Africa and urged the agency to investigate and recoup all monies lost as a result of fruitless, wasteful and irregular expenditure incurred in the previous years.

9.17 The Committee noted Brand South Africa’s participation in international fora and enjoined the entity to ensure a return on investment when it selects fora to participate in.
10 RECOMMENDATIONS The Committee recommends the following: The Department 10.1 The Department of Planning, Monitoring and Evaluation should take due consideration of all fundamental issues raised by stakeholders during the consultation phase on the Integrated Planning Framework Bill.

The roles and 19 responsibility of the three spheres should be clearly specified and be in spirit of Chapter 3 of the Constitution on Cooperative Government.
10.2 The Department should ensure the finalisation and transfer of the Spatial Planning Land Use Management Act (SPLUMA) and Spatial Planning function to the National Planning Commission in order to reinforce capacity to develop and implement the National Spatial Development Framework.

The Department should ensure alignment of the National Development Plan with the National Spatial Development Framework to guide future spatial planning developments in the country.
10.3 The Department should intensify its monitoring activities in government facilities particularly in hospitals, Home Affairs, Police stations, and licensing departments.

The Department should conduct more unannounced visits as a way of improving services to the citizens.
10.4 The Department of Planning, Monitoring and Evaluation should monitor government departments in implementing the delivery outcomes and Medium Term Strategic Framework to determine whether the objectives of the National Development Plan are achieved to realise vision 2030.

10.5 The Department should ensure internal controls are effective to curb wasteful and fruitless and irregular expenditure.
10.6 The Committee requests the Department to develop case studies on Section 100 intervention of the Constitution as part of lesson learned to empower government to avoid recurrence in future concerning other provinces.

Case studies have to guide and strengthen existing policies in the legislative frameworks to ensure good governance in public administration.
10.7 The Committee requests Government across the public service to treat as a matter of urgency, where applicable, the appointment of boards immediately when they get dissolved or their term expires; and specifically the Department to finalise the process of appointing the Brand SA board.

Brand South Africa 19 20 10.8 Brand South Africa should collaborate with other institutions aimed to promote young people’s innovative ideas to business investors.
Brand South Africa should expand its reach by including more rural youth in its initiative to inspire and instil pride among South Africans.

10.9 Brand South Africa should ensure fair reporting in terms of world indicators to rank the country.

Both positive and negative world’s ratings should be acknowledged and be reported on in pursuit of marketing the country’s image and to reflect the real outlook.
10.10 Brand South Africa should investigate all cases identified in the Auditor General’s audit outcomes and report progress to the Committee in February 2020.

The Portfolio Committee 10.11 The Committee undertook to formulate the terms of reference (ToRs) on the briefing to be made by Brand South Africa on the “Play Your Part” programme.
11 CONCLUSION The Portfolio Committee commends the Department of Planning, Monitoring and Evaluation in achieving clean audits over the consecutive years up to the 2018/19 financial year.

However, the achievement of clean audits needs to be translated into improving service delivery across government through planning, monitoring and evaluation.

During the period under review, the Integrated Planning Framework Bill has been developed to streamline how government should function.
The Bill intends to establish a framework to integrate planning across government and to ensure alignment of sector plans in all spheres of government.

Brand South Africa will undertake coordinated initiatives to build South Africa’s reputation and to contribute to the country’s global competitiveness.

Brand South Africa continues to build bridges across the continent.

Report to be considered.

21 2.


BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION ON STATISTICS SOUTH AFRICA: VOTE 12 DATED 16 OCTOBER 2019 1.

BACKGROUND The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly, which is in line with Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.
9 of 2009 to consider and report on the Annual Report of the Statistics South Africa.

It should be noted that Statistics South Africa operates independently from the Executive.

The BRR Report is tabled as follows: 2.

INTRODUCTION Parliament derives its mandate from the Constitution of the Republic of South Africa.

The strategic objectives of the Portfolio Committee are informed by five strategic goals of Parliament.
The functions of the Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation are as follows:  Participating and providing strategic direction in the development of the legislation and thereafter passing the laws,  Conducting oversight over the Executive to ensure accountability to the Portfolio Committee towards achieving an effective, efficient, developmental and professional public service,  Conducting public participation and engaging citizens regularly with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector,  Monitoring the financial and non-financial aspects of departments and their entities and ensuring regular reporting to the Committee, within the scope of accountability and transparency,  Supporting and ensuring the implementation of the PSC recommendations in the entire public service 21 22  Participating in the international treaties which impact on the work of the Committee.
3.

PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT 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 assesses 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.
Moreover, 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 3.1 Method The Portfolio Committee on Public Service and Administration compiled the 2018/19 BRRR using the following documents:  The National Development Plan: Vision for 2030.
 Medium Term Strategic Framework 2015-2020.

       State of the Nation Address 2018.

Strategic Plans of the Statistics South Africa 2015-2020.

National Treasury (2019) 4th Quarter Expenditure Report 2018/19 Financial Year Annual Performance Plans 2018/19 of the Statistics South Africa.

Annual Report 2018/19 of the Statistics South Africa.

Auditor-General South Africa’s outcomes of audit findings 2018/19.

The Portfolio Committee met with the leadership of the Statistics of South Africa 23 4.
NATIONAL DEVELOPMENT PLAN VISION 2030 The National Development Plan highlights the need for South Africa to build a state that is capable of playing a developmental and transformative role.

This requires the st ate to formulate and implement policies that support that role.

The NDP and the Medium Term Strategic Framework are informed by statistical information provided by Statistics South Africa, which publishes more than 200 statistical releases per year.
The publications present statistical research that measures the development and transformation of the economy and society in a range of context.

Changing economic and societal realities have expanded the demand for statistical information: more detailed statistics are needed and more frequently if policies are to be responsive and effective.

Statistics in the public domain must be of high quality.
Responding to the increased demand for high quality statistics will require a national effort, and collaboration and partnerships between the producers and the users of statistics.

5.

MANDATE OF THE STATISTICS SOUTH AFRICA Statistics South Africa is a national government department accountable to the Minister in the Presidency: Planning, Monitoring and Evaluation.
The department’s activities are regulated by the Statistics Act (1999), which mandates the department to advance the production, dissemination, use and coordination of official and other statistics to assist organs of state, businesses, other organisations and the public planning, monitoring and decision making.

The Act also requires that the department coordinate statistical production among organs of state in line with the purpose of official statistics and statistical principles.
However, there is a legislation reform on the cards for the institution.

This legislative reform will inform the full planning cycle of government, from planning to evaluation, including the implementation of the Spatial Data Infrastructure Act.

Stats SA has started the legislative review process.

6.
6.

STRATEGIC PRIORITIES Statistics South Africa aims to contribute towards realisation of the ideals of the National Development Plan (NDP) by providing accurate data policy implementation to overcome social challenges such as inequality, poverty and unemployment.

Stats SA works in 23 24 conjunction with all stakeholders in the country to provide accurate statistical information on economic, demographic, social and environmental factors for proper NDP implementation.
The institution has identified the following strategic priorities, which are: a) To promote and inform the nation through an expansion of statistical products and services.

b) To increase statistical trust through sound quality principles that are in line with international standards.

This will ensure that users of statistics products have confidence and trust official statistics.

c) To promote partners in statistics, international cooperation and participation in statistics.
d) To invest in the learning and capable organisation.

e) To promote statistical leadership through investment in schools and tertiary programmes to increase statistical skills at grass roots level.

7.

DEPARTMENT PROGRAMME PERFORMANCE 7.1 Statistics South Africa 7.1.1 Budget Allocated and Expenditure 2018/19 The budget appropriated to the Statistics South Africa for the 2018/19 financial year was R2 271 669 billion.
The actual expenditure was R2 311 135 billion for all the programmes which is an estimated of 101.7% of the total allocated budget.

The overspending was mainly due to budget reductions on compensation of employees, which resulted in Stats SA not being able to afford the costs of filled positions, notwithstanding the fact that recruitment has been placed on hold since October 2016.
The bulk of the budget was allocated in the administration programme with R711 829 million, followed by Statistical Collection and Outreach with R627 390 million and Statistical Support and Informatics with R257 067 million.

Stats SA achieved 93% of its targets as set out in the Annual Performance Plan whils t under tremendous financial and human resource constraints.
The Department has not been able to fill any key management or other critical posts since October 2016, with the exception of that of the Statistician-General in November 2017.

25 Human capital remains the most valuable asset in Stats SA.

In order to achieve organisational strategic objectives, Stats SA needs employees with the necessary skills and competencies.

Stats SA place an emphasis on capacity building programmes for employees at all levels.
The increase in the vacancy rate was as a result of the department’s inability to recruit permanent staff due to prior year budget cuts, which were in excess of the actual costs of filled posts.

This has placed the quality of basic statistics at risk, even as the Department has done everything possible to remain professional.

However, Stats SA continues recruiting contract positions for surveys, as and when required during the financial year.
Stats SA has 2 906 staff complement with personnel cost amounting to R1 493 billion.

The vacancy rate was at 17.2% (605 of 3 511).

In terms of gender representation in the Department, female representation was at 46.4% and male at 53.6%.

Whilst the Department achieved 41.5% representation of females in SMS, which was below 50% norm in the public service.

People with disabilities’ representation in the Department was at 1.4% and below the agreed norm of 2%.
The Department experienced resignations of 40.5% of the staff complement in 2018/19 financial year.

Table 1: Appropriation per programme (R’000) Programme R'000 Final Appropriation Actual Expenditure Shifting funds of Virement Variance 1.

Administration 711 829 733 804 2.Economic Statistics 248 657 248 491 3.

Population and Social Statistics 4.

Standard and Research Methodology, 5.

Statistical Support and Informatics 6.


Statistical Collection Outreach and 169 193 168 916 73 306 73 166 257 067 248 186 627 390 662 154 7.
Survey Operations 184 257 176 418 Total Stats SA Annual Report 2019 2 271 699 2 311 135 0 0 0 0 0 0 0 0 7.2 Programme Performance 25 33 245 (21 975) (259) 166 (14 712) 277 (1 721) 140 (22 354) 8 881 11 359 (34 764) (5 558) 7 859 0 (39 436) 26 Statistic South Africa has seven programmes, namely: (a) Programme 1: Administration The purpose of the programme is to provide strategic leadership management and support services to the department, and capacity building.
This programme aims to lead the development and coordination of the statistical production system among organs of state.

Secondly, the programme provides direction and leadership through driving strategic and operational planning and monitoring.

It also provides corporate support services on an ongoing basis.

The programme has achieved 92.3% of its annual targets as scheduled in the Work Programme and 7.7% were not achieved.
The programme has contributed to providing strategic direction to the organisation, planning and monitoring its performance, leading the development and coordination of the national statistics system and to enhancing corporate governance and administration.

The programme has spent R733.8 million of the allocated funds.

Of the total expenditure, an amount of R224.0 million was spent on compensation of employees, whilst an amount of R236.8 million was spent on goods and services.
The Programme overspent on compensation of employees by R22.1 million due to budget reductions.

The programme spent 103.1 of its allocated budget.

Stats SA conducted client satisfaction survey and an intervention strategy will be developed based on the outcome of the survey.

Succession planning was not institutionalised as planned due to a proposed restructuring of the organisation and the implementation of Computer-Assisted Personal Interview (CAPI).
The redeployment of staff affected by CAPI has been postponed to 2019/20 and will be undertaken with the full implementation of CAPI.

The appointment of interns is under review due to budget constraints in the organisation.

Stats SA has achieved 100% of financial disclosure for Senior Management Service (SMS), Middle Management Service (MMS) and other designated employees, which were submitted to the Department of Public Service and Administration (DPSA).
(b) Programme 2: Economic Statistics The Economic Statistics programme produces economic statistics to inform evidence - based economic development and transformation in line with internationally recognised 27 practices.

Its main objectives are to expand the economic statistics information base by increasing the depth, breadth and geographic spread for evidence based planning.

Programme Management for Economic Statistics provides strategic direction and leadership.
The programme has achieved 100% of its annual targets, as scheduled in the Annual Performance Plan.

The programme spent R248 491 million of the allocated funds.

Of the total expenditure, an amount of R230 296 million was spent on compensation of employees whilst an amount of R17 412 million was spent on goods and services items such as consultants, travel and subsistence and operating payments.
The programme’s actual expenditure when compared against the benchmark was 99.9% when applying straight-line analysis.

Key achievements included monthly, quarterly and annual releases in line with the international Special Data Dissemination Standards.
The programme informed economic planning, monitoring and decision-making by providing accurate, relevant and timely statistical information on the level of economic activity in relation to the primary, secondary and tertiary sectors of the economy, financial information on private sector businesses and government and information on sustainable resource use and management.
(c) Programme 3: Population and Social Statistics The purpose of the programme is to produce population, demographic, labour market and social statistics to meet user requirements in line with internationally recognised practices.

Population and social statistics inform evidence based socio -economic development and transformation in line with internationally recognised practices.
Programme 3 contributes to strategic objective in an effort to expand the statistical information base by increasing its depth, breadth and geographic spread.

Stats SA achieved 92.9% of its targets as scheduled in the Annual Performance Plan, of which 7.1% were not achieved.

The programme spent R168 916 million of its allocated budget.
Of the total expenditure, an amount of R134 794 million was spent on compensation of employees, whilst an amount of R26 720 million was spent on goods and services such as travel and subsistence and operating payments.

Actual expenditure compared against the benchmark spending was 99.8%.
27 28 The programme contributed to informing social and economic development planning, monitoring and decision-making by providing relevant, timely and accurate statistical information on living conditions, population dynamics, vital events, employment, crime and poverty levels.

Stats SA has encountered late publications in relation to the quality of administrative data received from Home Affairs.
Stats SA continues to collaborate and support the Department of Home Affairs to improve the quality of administrative records.

During the year under review, Stats SA key outputs include mid-year population estimates at national, provincial, district council and metro levels, thematic demographic report s on cohort fertility and labour market outcomes of migrant communities.
The local municipality and household estimates were not published due to data and system challenges and thematic reports on the South Africa Demographic and Health Survey (SADHS) were not compiled due to the late release of the survey by the Department of Health (February 2019).

(d) Programme 4: Methodology, Standards and Research The purpose of the programme is to provide expertise on quality and methodology for official statistics, standards for conducting surveys, and business sampling frames.
This will be done by improving the comparability and accuracy of statistical information and by ensuring accurate and reliable statistical information for users.

Additionally, this programme conducts policy research and analysis on emerging policy matters.

Therefore, this programme provides statistical support and advice to policy makers by annually conducting policy research and analysis.
Stats SA achieved 100% of its targets as scheduled, of which 87.5% were achieved as scheduled and 12.5% were achieved earlier than scheduled.
The programme contributed to improving the credibility, comparability and accuracy of statistical information by applying appropriate quality criteria, standards, classifications and procedures, providing methodological and system support services, developing standards, researching current and international best practice and ensuring an updated sample frame for the collection of economic statistics.

The programme spent R73 166 million of the budget allocated.
Of the total expenditure, an amount of R70 569 million was spent on compensation of employees, whilst an amount of R2 152 million was spent on goods and services.

The main cost drivers are travel and 29 subsistence, operating and machinery and equipment.

Actual expenditure as compared against the benchmark spending was 99.8%.
Key achievements, in the year under review, include the developments of standards on determining the need for information, data linking, tabulation plan, the provision of preliminary and final sampling frames and a report on further implementation of the unit’s model.

Stats SA produced three research reports on government’s socioeconomic planning, two research reports on spatial analysis and a research report on demographic dividend analysis.
(e) Programme 5: Statistical Support and Informatics This programme aims to enable service delivery programmes by using technology in the production and use of official statistics.

This includes promoting coll aboration with potential stakeholders in building and maintaining reliable household surveys.

This programme further assists in modernising business processes and supporting the department’s production of official statistics.
The Stats SA has achieved 83,3% of its annual targets and 16.7% were not achieved.

The programme contributed to improving the measurement of the economy and society by providing and maintaining a frame for accurate sampling of household surveys and a complete and up-to-date database of dwellings for planning and conducting of surveys and censuses.

The programme provided editing, publishing and distribution services.

The programme has spent R248 186 million of the allocated budget.
Of the total expenditure, an amount of R136 457 million was spent on compensation of employees, whilst an amount of R86 713 million was spent on goods and services.

The main cost drivers on the programme include publication services such as the payment of computers and contractors.

(f) Programme 6: Statistical Collection and Outreach The purpose of the programme is to provide statistical information to support policymakers.

It manages stakeholders to provide effective communication services.
It also promotes statistical development and cooperation in South Africa, Africa and the World.

The programme contributes in enhancing public confidence and trust in statistics; improving productivity and service delivery; leading the development and coordination of statistical production within the South African National Statistical System (SANSS); 29 30 investing in the learning and growth of the organisation; and promoting international cooperation and participants in statistics.
Stats SA achieved 88.6% of its annual targets and 11.4% were not achieved.

The programme spent R662 158 million of the allocated funds.

Of the total expenditure, an amount of R526 358 million was spent on compensation of employees, whil st an amount of R129 327 million was spent on goods and services.

The programme overspent on compensation of employees by R26 270 million due to budget reductions.

The programme spent 105.5% of its allocated budget.
The programme contributed to increasing awareness and marketing, and communicating and disseminating official statistics to relevant stakeholders through effective stakeholder management, internal communication and public and media relations.
Furthermore, the programme contributed towards expanding the statistical information database through integrated fieldwork, continuous data collection, stakeholder management, increased collaboration and strengthening partnership within SANSS, promoting the harmonisation of statistics in Africa, strengthening statistical capacity on the continent, promoting international statistical best practice and building international partnerships.
(g) Programme 7: Survey Operations The purpose of the programme is to provide collection and processing support to produce official statistics.

The programme also conducts independent household survey monitoring and evaluation activities.

The programme contributes in improving productivity and service delivery.

In this programme, Stats SA achieved 95% of the targets of the Annual Performance Plan, 5% were achieved later than scheduled and 5% were not achieved.
The programme contributed to informing social and economic development, planning, monitoring and decision-making and to increase the efficiency and effectiveness of survey operations.

The programme has spent R184 257 million of the allocated funds.

Of the expenditure, an amount R150 659 million was spent on compensation of employees, whilst an amount of R25 396 million was spent on goods and services items such as communication, operating payments and travel and subsistence.
The programme spent 95.7% of its allocated budget.

31 Stats SA conducts periodic population censuses and large-scale population surveys.

During the year under review, Stats SA reports on processing and editing of questionnaires and implementation of phase 2 of digital data collection.

The Department received death notification forms for the Mortality and Causes of Death Survey later than scheduled from the Department of Home Affairs.

Stats SA achieved 83% of the targets and 17% were not achieved.
The programme contributed to informing social and economic development, planning, monitoring and decision-making and to increase the efficiency and effectiveness of survey operations.

8.

AUDITOR-GENERAL OUTCOMES The Auditor-General has audited the financial statements of the Statistics South Africa, set out on pages 157 to 246, which comprise appropriation statement, t he statement of financial position as at 31 March 2019.
The statement of financial performance, statement of changes in net assets and cash flow for the year ended as well as the notes to the financial statements including a summary of significant accounting policies.

The Auditor General opinion indicates financial statements are present fairly, in all material respects, the financial position of Statistics South Africa and its financial performance and cash flows for the year are in accordance with the Modified Cash Standard and the requirement of the PFMA.
Statistics South Africa received an unqualified audit in consecutive days.

8.1 Predetermined objectives The Auditor-General performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents.

The AG did not identify any material findings on the usefulness and reliability of the reported performance information on programme 2: Economic Statistics.
8.2 Adjustment of material misstatements The AG identified material misstatements in the annual performance report submitted for auditing on the reported information for Programme 5: Statistical Support and Informatics and programme 6: Statistical Collection and Outreach.

Management subsequently 31 32 corrected the misstatements.

The AG did not identify any material findings on the usefulness and reliability of the reported performance information.
8.2.1 Unauthorised expenditure The Department incurred unauthorised expenditure to the value of R57 140 000, mostly on compensation of employees due to budget reductions that exceeded the vacancy rate in the 2018-19 financial year.

This resulted in the department not being able to afford the cost of filled positions.

8.3 Internal Control The AG did not identify any significant deficiencies in the internal control.

9.
9.

OBSERVATIONS AND KEY FINDINGS The Portfolio Committee made the following observations: 9.1 The Portfolio Committee notes that Statistics South Africa received an unqualified audit in the consecutive years.

The Committee encourages the Department to move towards achieving a clean audit.

The Committee commended Stats SA for good performance, although operating under tough financial and human resource constraints.
9.2 Budget allocation for compensation of employees was significantly reduced with R179 548 million in 2018/19 financial year.

This resulted in the department overspending by R48 865 million on compensation of employees at the end of the 2018/19 financial year.

The Committee was disappointed with the financial status at Stats SA, which is not their doing, but allocations from the National Treasury.
9.3 Stats SA incurred unauthorised expenditure of R121.2 million mainly as a result of overspending on the budget earmarked for the compensation of employees.

The Committee noted a budget shortfall of R2.7 million in Stats SA.

9.4 In preparation of Census 2021, Stats SA would commence with piloting of the census in 2019/20 financial year.

Stats SA will brief the Committee after piloting the project.
9.5 The Committee was concerned about budget shortfalls experienced, which impact on the human resources and further resulting in discontinuation of crucial 33 statistical series such as Poverty, Quarterly Labour Force Survey and Living Conditions Survey.

9.6 Critical posts in Stats SA have become vacant for a long period as a result of budget cuts.

The vacancy rate was at 17,2% in 2018/19 financial year as compared 13.9% 2017/18 financial year.

There is a high turnover rate in middle management.
Stats SA can no longer afford to appoint competent and capable personnel due to financial constraints, which will in a long term compromise quality of statistics.

10.
10.

RECOMMENDATION The Portfolio Committee recommends that: 10.1 The Minister in the Presidency for Planning, Monitoring and Evaluation and the Minister of Finance should urgently resolve the budget shortfall on compensation of employees and critical surveys at Stats SA so that crucial and quality statistics get generated to the country and Government’s benefit, if an ideal resolution cannot be found, the Minister is requested to escalate the matter to the Presidency.

11.
11.

CONCLUSION The Department was able to spend the entire allocated budgets, and even went beyond the allocation, due to budget cuts by the National Treasury.

The Department’s funding must be given urgent attention to prevent the shortfall that occurred during the financial year.

Statistics South Africa continues to play a critical role in South Africa and internationally.
Statistical releases give meaning to the evidence-based policy making, decision making, planning and allocation of the budget in the country.

Currently, the institution experiences funding challenges, which hamper its effectiveness in the production of the quality, reliable and timely statistics.

The institution continues to exercise its mandate of producing basic statistics under inadequate human resource and financial constraints.
Without Stats SA being adequately funded, government and other entities, will not be able to plan and realise the main objective of the National Development Plan, maintain a stable economy, maintain a strong Gross Domestic Product (GDP), determine the interest rates, and even influence the private sector to regulate its affairs.

All this leads to building a capable and developmental 33 34 state.

Funding challenges might erode the independence of the institution.
The Committee appeals to the MINCOMBUD to urgently attend to budget shortfalls before the Department loses even more competent and capable statisticians.

Report to be considered.

3.


BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION ON THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION (DPSA), PUBLIC SERVICE COMMISSION (PSC), NATIONAL SCHOOL OF GOVERNMENT (NSG) AND THE CENTRE FOR PUBLIC SERVICE INNOVATION (CPSI): VOTE 10 DATED 16 OCTOBER 2019 1.
BACKGROUND The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly, which is in line with Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

9 of 2009 to consider and report on the Annual Reports of the Department of Public Service and Administration, and entities as well as Public Service Commission (independent body), reports as follows: 2.
INTRODUCTION Parliament derives its mandate from the Constitution of the Republic of South Africa.

The strategic objectives of the Portfolio Committee are informed by five strategic goals of Parliament.
The functions of the Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation are as follows:  Participating and providing strategic direction in the development of the legislation and thereafter passing the laws;  Conducting oversight over the Executive to ensure accountability to th e Parliament towards achieving an effective, efficient, developmental and professional public service; 35  Conducting public participation and engaging citizens regularly, with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;  Monitoring the financial and non-financial aspects of departments and its entities and ensuring regular reporting to the Committee, within the scope of accountability and transparency;  Supporting and ensuring implementation of the Public Service Commission (PSC) recommendations in the entire public service  Participating in international treaties which impact on the work of the Committee.
3.

PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.

9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations reports (BRRR) that assesses 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.
3.1 Method The Portfolio Committee on Public Service and Administration compiled the 2018/19 BRRR using the following documents:  The National Development Plan: Vision for 2030.

 Medium Term Strategic Framework 2015 - 2020.

  State of the Nation Address 2018.

Strategic Plans of the PSC, the Department and entities.

35 36      National Treasury (2019) 4th Quarter Expenditure 2018/19 Financial Year.

Annual Performance Plans of the PSC, the Department and entities.
Annual Reports 2018/19 of the PSC, the Department and entities.

Auditor-General South Africa’s outcomes of audit findings 2018/19.

The Portfolio Committee also met with the leadership of the PSC, the Department and entities under budget vote.

4.
4.

NATIONAL DEVELOPMENT PLAN VISION 2030 The Department of Public Service and Administration is required to implement and coordinate interventions aimed at achieving an efficient, effective and development oriented public service, which is an essential element of a capable and developmental state as envisioned in the National Development Plan (NDP) 2030.

In relation to the National Development Plan 2030, the Department has the following strategic priorities:  Measures to advance women’s equality.
 Graduate recruitment scheme for the public service to attract highly skilled people.

 Realising a developmental, capable and ethical state to ensure a dignified treatment of citizens.

 Addressing unevenness in state capacity to deal with uneven performance in local, provincial and national government.

 Professionalisation of the public service in order to:  Put in place the Administrative Head of the Public Service.

 Introduce a hybrid system for the appointment of Heads of Department (HoDs).
 Establish delegations of authority and principles on human resource matters.

 Address the shortage of scarce skills.

 Solve skills shortage at technical and managerial levels.

 Improve intergovernmental relations.

 Fight and eliminate corruption in the public service.

 Foster leadership and inculcate responsibility throughout society.

 Put responsibility for human resource matters on the shoulders of the HoDs.

37 5.
37 5.

MANDATE OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION The mandate of the Department of Public Service and Administration is derived from Section 195(1) of the Constitution to implement basic values and principles that the public service should adhere to, and the Public Service Act (PSA) of 1994, as amended.
In terms of the PSA, the Minister for the Public Service and Administration is responsible for establishing norms and standards relating to:  The functions of the public service,  Organisational structures and establishment of departments and other organisational and governance arrangements in the public service,  Labour relations, conditions of service and other employment practices for employees,  The Health and wellness of employees,  Information management,  Electronic government in the public service,  Integrity, ethics, conduct and anti-corruption; and  Transformation, reform, innovation and any other matter to improve the effectiveness and efficiency of the public service and its service delivery to the public.
5.1 Strategic Goals The priorities for the Department of Public Service and Administration over the medium term period are informed by the National Development Plan objectives, which are therefore translated into the Medium Term Strategic Framework (MTSF) 2015-2020.
The Department highlighted the following priorities to the Portfolio Committee: (i) A stable political-administrative interface Promoting stability of leadership in the top levels of bureaucracy which is central to building a capable and developmental state by introducing clear delegations, effectively managing the political-administrative interface, improving public confidence in the process and quality of appointments.
(ii) A public service that is a career of choice 37 38 Promoting the public service as a career of choice by adopting a more long term approach to developing the skills and professional ethos that underpin a development oriented public service, recruiting young professional into the public service, ensuring that the work environment is conducive for learning to take place on the job and by adhering to the Constitutional principles that guide personnel practices.
(iii) Efficient and effective management and operations systems Improving management and operations systems to challenges frontline staff face in delivering quality services to citizens by clarifying responsibilities, introducing efficient and effective work processes, including IT systems that are tailored to specific areas of service delivery and by delegating greater authority to resolve day-to-day problems.
(iv) Increased responsiveness of public servants and accountability to citizens Improving accountability as set out in the Batho Pele Principles and the Public Serv ice Charter by strengthening accountability to citizens, particularly at the point of delivery, increasing the responsiveness of public servants to the views and concern raised by citizens and other service user and by developing the capacity to monitor th e quality of service provision and effecting the required improvements.
(v) Improved mechanisms to promote ethical behaviour in the public Improving confidence in the integrity of the public service through strengthening the fight against corruption by effecting amendments to the relevant codes of legislation in order to limit the scope for conflicts of interest, preventing public servants from doing business with the state and by building the capacity of departments to investigate issues relating to ethics, integrity and implement disciplinary actions on cases where there is a possible or actual conflict of interest.
6.

DEPARTMENT AND ENTITIES’ PROGRAMME PERFORMANCE 39 6.1 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION 6.1.1 Budget Allocated and Expenditure 2018/19 The Department of Public Service and Administration spent R926 million or 97.4 per cent of its 2018/19 budget allocation of R950.6 million as at the end of March 2019.

The R926 million in actual spending was R24.6 million or 2.6 per cent lower than the projected expenditure for the period under review.
The lower than anticipated spending was mostly reported under the compensation of employees’ budget due to vacant positions, and goods and services’ budget due to delays in establishing the Government Employees Housing Scheme.

The main cost drivers of the total Vote budget are: Administration (R248.3 million); Service Delivery Support (R258.3 million) and Governance of Public Administration (R307.0 million).
The Department incurred irregular expenditure of R310 000 as disclosed in note 24 to the annual financial statements, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

The irregular expenditure was caused by goods and services with a transaction value below R500 000 which were procured without obtaining the required price quotations.
The number of posts on the establishment of the Department decreased in the 2018/2019 reporting year from 498 (of which 54 were additional employment) in 2017/18 to 482 (of which 59 were additional employments) in 2018/2019.

A total 420 of these posts were filled.

The decrease was attributed to the implementation of the cost containment measures in that the Department’s compensation budget for the MTEF period has been cut.
The Department spent 96.7% of the total voted expenditure for compensation, with more spending realised in salary levels 13-14.

As of 31 March 2019, the DPSA had a total of 59 posts additional to the establishment, included in the total of 420 employees.

The vacancy rate decreased from 13.85% (2017/2018) to 12.90% in the reporting year.

Vacancy rate on SMS level remained the highest.


The representativity of females at SMS levels (levels 13-16) remained at 41% as compared to the previous reporting period, a deficit of 9% to reach the national target of 50% women on SMS level.

The Department met the national target of 2% in the previous reporting year, the percentage of people living with disability increased from 3% to 3.57% at the end of current reporting period.
Appropriation per programme (R’000) 39 40 Programme R’000 Final Expendit Varian Viremen Percenta appropriati ure ce t ge on 1.

Administration 248 344 242 34 6 036 7 821 97.6% 2.

Policy Development, 32 432 31 432 722 (1 954) 97.8% Research and Analysis 3.

Labour Relations and 81 296 67 452 13 844 3 268 83.0% Human Resource Management 4.

Government Chief 21 201 20 549 652 (1 240) 96.9% Information Officer 5.

Service Delivery Support 258 372 257 210 1 162 (4 009) 99.6% 6.
Governance of Public 309 253 307 027 2 226 (3 886) Administration Total (DPSA) 950 656 926 014 24 642 - 97.4% Source: DPSA 2018/19 Annual Report 6.1.2 Programme Performance The Department has six programmes which are as follows: (a) Programme 1: Administration The purpose of the programme is to manage overall strategic and operational functions of the Department which include policy direction; strategic leadership; coordination and facilitation of multilateral and bilateral programmes; integrated planning and programme support; provisioning of financial and human resource management services; security and facilities management; communication and ICT management; coordination of the provisioning of internal legal advice services, as well as , and audit and risk management oversight.
The programme had six predetermined targets in 2018/19 financial year.

Of total targets, five (5) were achieved and one (1) not achieved.

The programme reported an expenditure of R242.3 million or 97.6 per cent of the programme’s 2018/19 available budget of R248.3 million as at the end of the fourth quarter of 2018/19.

The reported expenditure was R6.0 million or 2.4 per cent lesser than the projected expenditure of R248.3 million for the period under review.
The spending is also as a result of the Department settling its payments for rental and maintenance costs for its office accommodation for the 41 2018/19 financial year, as well as for the two previous financial years it, at the time, did not have sufficient funding to pay the Department of Public Works.

The main cost drivers of the Programme are: The Ministry (R40.3 million); Corporate Services (R82.6 million) and Office Accommodation (R66.8 million).
(b) Programme 2: Policy, Research and Analysis The purpose of this programme is to research, analyse, monitor and evaluate the formulation, development and review of policies and policy reform through a cogent policy and research agenda and strategy for public administration discourse and reforms, based on both national and international trends, using capacity and functionality assessments; providing Public Service productivity measurement instruments; investigating appropriate and alternative pubic administration delivery models through knowledge management and best practices; managing and evaluating transformation programmes; in order to enhance access to public services through feasibility and continuity studies.
The programme had achieved all seven (7) planned targets.

The programme reported an actual expenditure of R31.4 million or 97.7 per cent of its 2018/19 budget allocation of R32.1 million as at the end of March 2019.

The expenditure was R722 000 or 2.3 per cent lower than the programme’s projected expenditure of R32.1 million for the period under review.

The low expenditure is evident in the budget for goods and services due to invoices received which were lower than projections.
The main cost driver of the Programme is: Public Service Performance, Monitoring and Evaluation (R13.4 million).

The Public Administration Management Act (PAMA) was signed into law by the President in 2014.

The Act seeks to provide a legal framework across the three spheres of government for bringing some degrees of uniformity in the public administration pillars, transversal institutions, Human Resource, Information Communication Technology and systems.
Regulation are drafted which will bring into effect the Act.

To give effect to PAM Act, the Department held consultations on draft Strategic Framework for Norms and Standards which inform the structure, governance and functioning of the Office of Standards with the national and provincial departments.
41 42 Under this programme, the Department drafted the business case research report on the legislative instruments, structure, functions, governance and envisaged operationalisation of the Office of Standards in terms of the Public Administration Management Act.

Moreover, the Department submitted compliance report on the monitoring of selected Public Service Norms and Standards by line departments.
As part of Macro-configuration of government, the Department drafted and submitted proposed model for the configuration of the Centre of national government.

The Department conducted consultations on the draft White Paper for the Transformation and Modernisation of public administration linked to the social vision of the NDP and provisions of PAMA of 2014.

Productivity is key in delivery of quality services.

The final Productivity Measurement Tool was approved by the Minister of the Department.
The Department conducted eleven (11) workshops to support the Department on the application of the Productivity Measurement Tool.

The Department submitted Public Administration Organisational Functionality Assessments (OFA) tool for approval.
(c) Programme 3: Labour Relations and Human Resource Management The purpose of the programme is to develop, implement and monitor human resources policies and functions, by managing labour relations negotiations, employee relations, discipline and work environment management, designing remuneration and job grading policy frameworks; as well as, support the implementation of human resource development and planning strategies, systems and practices.
The programme had six predetermined targets in 2018/19 financial year.

Of total targets, four were achieved and two not achieved.

The programme spent R67.4 million or 83.0 per cent of its 2018/19 budget allocation of R81.2 million as at the end of March 2019.

The expenditure of R67.4 million was R13.8 million or 17.0 per cent lower than the projected expenditure of R81.2 million over the period under review.
The Department experienced low spending on its budget for goods and services linked to the Government Employees Housing Scheme due to delays in the establishment of the scheme.

The low spending is mainly evident in consumables: stationery, printing and offices supplies, operating payments and training and development items.
The main cost drivers of the Programme are: Remuneration and Job Grading (R22.0 million); Employee Benefits (R27.9 million) and Human Resource Planning, Employment Practices and Performance Management (R11.5 million).

43 A public service that is career of choice is among the objectives of the National Development Plan (NDP).
The NDP proposes a number of interventions aimed at ensuring public service becomes a career of choice, that attracts and retains appropriate skills and expertise necessary to deliver on the goals and mandate of government.

In this regard, the Department is responsible to monitor and report on the average percentage of funded vacant posts on PERSAL against 10% or less.
The Department submitted report to the Minister on the average percentage of funded vacant posts on Personnel and Salary Administration System (PERSAL).

The Department provided policy support through engagements with selected national and provincial departments on the revised Performance Management Development System for Heads of Departments (HODs).

Among targets not achieved was the drafting of the annual report on support provided to departments to implement the Graduate Recruitment Scheme Framework.
In addition, The Department submitted the annual report on the appointment of persons into developmental programmes within the public service.

In terms of 2015/2020 Medium Term Strategic Framework (MTSF) a total of 100 000 youths have to be appointed into Learnership, Internship, and Artisan programmes by 2019.

The Department has worked closely with departments to ensure that a target of 20 000 is met.
Circulars clarifying the targets, scope and funding sources, applicable legislation and implementation mechanisms were also issued.

The Department conducted Human Resource Development Forum workshops with national and provincial departments to support the appointment of youths into learnership, internship and apprenticeship programmes.

The Department is also responsible to monitor the average number of days taken to resolve disciplinary cases by all national and provincial departments.
The Department did not achieve this critical target over the consecutive years due to late submission of reports by the departments for 2017/18 on the average number of days taken to resolve disciplinary cases.

In 2018/19, the Department submitted first and second quarterly reports on the average number of days taken to resolve disciplinary cases by national and provincial departments.
Government and Organised Labour concluded a collective agreement in 2015, signed at the PSCBC, to establish a Government Employee Housing Scheme (GEHS).

According to clause 4.1.3 of the Resolutions7 of 2015 the employer is responsible to operate, administer and manage the GEHS with consideration of Labour as a key partner in the governance of the 43 44 Scheme.

The Department has on an interim measure, established a Project Management Office for the GEHS.
Progress on the implementation of the services of the GEHS as at March 2016 is as follows: Housing Allowance Administration  A housing allowance of R1200 per month to qualifying employees to assist them towards accommodation.
 R300 of the housing allowance for Tenants saved in the GEHS Saving facility in order to assist employees accumulate a deposit required for buying houses In 2016/17 financial year, 527 038 employees had enrolled to receive the new GEHS housing allowance and 417 338 employees who do not own houses (i.e.

tenants) have a portion of their housing allowance diverted and accumulated into a saving facility.

To date, nearly R2 4 billion has been accumulated by employees.
In 2018/19 financial year, the Department submitted four (4) quarterly reports on the implementation of the GEHS to the Minister.

(d) Programme 4: Government’s Chief Information Officer The purpose of this programme is to promote and manage the use of ICT’s as a strategic tool in the design and delivery of citizen-centred services within government, by coordinating and consolidating public service ICT policies, strategies, costs, risk assessments, as well as ICT Governance matters.
The programme had achieved all five predetermined targets.

The programme spent R20.5 million or 96.9 per cent of its 2018/19 total available budget of R21.

2 million as at the end of March 2019.

The spending translated into a R653 000 or 3.1 per cent lower than anticipated expenditure for the same period mainly on the budget for goods and services.

The main cost drivers of the Programme are: Public Service ICT E-enablement (R6.2 million) and Public Service ICT Stakeholder (R7.2 million).
The programme submitted the Public Service Digitalisation Strategic Framework and the Public Service Cloud Policy to the Director-General.

The aim of the Framework is to assist the Public Service in planning how to improve service delivery to the citizens through leveraging data as well as Information and Communication.
In order to reduce high costs of procuring ICT products and services, the Department submitted a report on progress made by all national and provincial departments in managing the cost relat ed to IT procurement within the public service.

Moreover, the Department submitted to the Director-General the Public Service ICT Value Management Framework, the Public Service 45 ICT Security Assessment Standard and revised Corporate Governance of ICT Assessment Standard.
(e) Programme 5: Service Delivery Support The purpose of this programme is to manage and facilitate the improvement of service delivery in government by supporting and monitoring Operations Management and Service Delivery Planning; Frontline service delivery, including Service centre oversight; integrated citizen participation through African Peer Review Mechanism (APRM), the Open Government Partnership (OGP), as well as the implementation of community development programme.
The programme had seven predetermined targets in 2018/19 financial year.

Of all total targets, four targets were achieved and three not achieved.

The programme reported a total expenditure of R257.2 million against an available budget of R258.3 million as at the end of March 2019.
The expenditure was R1.1 million or 0.4 per cent lower than the projected expenditure of R258.3 million for the same period, mainly due to the following reasons: the postponement of the second review of the African Peer Review Mechanism, more cost effective management of spending on public participation (Izimbizo), as well as lower than projected spending on Open Government Partnership.

The low spending on Open Government Partnership was due to the project being run from the Office of the Minister.
Accordingly, the traveling costs were paid from the operational budget of the Office of the Minister in programme 1, and not from programme 5 (as was originally planned).

The main cost drivers of the Programme are: Service Delivery Initiatives (R15.2 million); Centre for Public Service Innovation (R36.0 million) and National School of Government (R169.0 million).

The Department submitted a report on the implementation of the Operations Management Framework by three prioritised departments.
In addition, the Department submitted 2017/18 and 2018/19 assessment reports on the implementation of the Batho Pele standards by national and provincial departments.

The Public Service Charter is a pledge of commitment between the employer and labour representatives to work together to improve service delivery.

It aims to improve service delivery by ensuring adherence to basic values and principles of service provision.
The Department submitted a report on the implementation of the Public Service Charter by departments.

The Community Development Workers Programme seeks to improve the dissemination of information to the poor about benefits and services to which all citizens are entitled, assist the 45 46 poor to access and benefit from the services that could materially improve their lives and improve interface between municipalities and communities.
The Department developed a framework towards the improvement of implementation of the Community Development Workers Programme.

The Department had provided support to national and provincial departments to improve the quality and implementation of the Service Delivery Improvement Plans.

A report on the implementation of the SDIP by all national and provincial departments was produced.

The Department was unable to develop framework for the establishment, promotion and maintenance of service centres.
(f) Programme 6: Governance for Public Administration The Department drives this programme to manage and develop policies, strategies and programmes on Public Service ethics, integrity and leadership; intergovernmental relations; macro organization of the state, including organisational design; strategic planning frameworks; as well as, monitor government intervention programmes and Human Resource information systems.

The programme had eight (8) predetermined targets for 2018/19 financial year.
Of total targets, seven (7) were achieved and one (1) not achieved.

The programme spent R307.0 million or 99.3 per cent of its available budget of R309.2 million as at the end of March 2019.

The expenditure was R2.2 million or 0.7 per cent lower than the projected spending of R309.2 million.
The lower than anticipated spending was mainly due to delays by the State Information Technology Agency regarding a review of the proposal fo r the development of a database for chairpersons and members of Commissions, and lower than projected spending on the e-disclosure system due to the SITA invoices for March 2019, which were submitted late and were only processed in April 2019.
The main cos t drivers of the Programme are: Ethics and Integrity Management (R15.6 million) and Public Service Commission (R264.4 million).

The Department was unable to develop the report on the adherence by national and provincial departments to the Directive on Public Administration and Management Delegations.

The directive on standardized delegation principles and templates was issued and workshops were held nationally and provincially.
47 The Department submitted a report on the implementation of the guideline on mentoring and peer support mechanism for senior managers by the departments to the Director-General.

A report on the lessons learnt from the pilots was submitted to the Minister.

The Department is expected to monitor the implementation of the competency assessments practice for the senior management services.
The Department is responsible for producing annual statistical fact sheets on the average time spent by the HODs in a post.

T he fact sheet on the average time spent by the HODs in a post was submitted to the Minister.

The Department had supported national and provincial departments to strengthen their internal Human Resources Capacity.

Chapter 3 of the Public Service Regulations provides for the electronic submission of disclosure of financial interests, which had been revised.
A revised determination was drafted to address conflict of interest arising from public servants doing business with the State.

The Public Service Regulations have been amended to prohibit public servants from doing business with the State, and have been aligned with the Public Administration Management Act.
In 2018/19 financial year, the Department submitted a report on the adherence by designated employees from national and provincial departments to the legislative framework regarding electronic disclosure of financial interests (e-Disclosure System).

Furthermore, a report on the implementation of the Directive on Other Remuneration Work was submitted to the Director-General.
The amendment of the Protected Disclosure Act created a need to strengthen the protection of Public Servants reporting on corruption an unethical conduct.

To give effect to regulations 13 (e) and 14 (g) the Regulations 2016, the Department drafted a framework for the management of Protected Disclosure for Public Service employees.

The Department conducted five consultative workshops to support national and provincial departments with the implementation of Framework for management of Protected Disclosure.
6.2 THE PUBLIC SERVICE COMMISSION (PSC) The PSC derives its mandate from Sections 195 and 196 of the Constitution, 1996.

Section 195 sets out the values and principles governing public administration, which should be promoted by the PSC, as well as powers and functions.

The PSC is required by the Constitution to exercise its powers and to perform its functions without fear, favour or prejudice.
The Constitution links the PSC’s independence firmly with its impartiality and 47 48 no organ of state may interfere with the functioning of the PSC.

The Public Service Commission gets its budget through a transfer from the budget vote of the Department of Public Service and Administration.

The budget allocated for 2018/19 financial year was R264 399 million with an expenditure of R263 895, estimated of 99.8%.
6.2.1 Programme Performance (a) Programme 1: Administration The main aim of this sub-programme is to provide overall management of the PSC and its Office.
The activities of this sub-programme are structured to meet the following objectives: assisting the Head of Department with the delivery of functions and responsibilities, assigned by legislation, providing strategic support and administrative services, providing continuous and adequate support service to the PSC and its Office towards achieving its strategic and operational objectives.
The programme was allocated a budget of R129.9 million and spent R129.8 million, which was an estimated 99.9% expenditure.

The budget under this programme was used to implement the Information and Communication Technology infrastructure at the new National Office of the PSC.

The procurement of Wi-Fi for Provincial Offices was also concluded.

This was aimed at ensuring that Commissioners and employees get the best user’s experience on the network.
During the year under review, the PSC maintained a vacancy rate of 6.5% (18 of 274) and six critical posts were filled at SMS level, with four of these posts filled by women in an effort to attain the 50% representation of women at SMS level.

The PSC approved Terms of Reference for Employment Equity Consultative Forum and a workshop on the Employment Equity Act was conducted to enable the Human Resource Practitioners to compile the Employment Equity plan with the correct Employment Equity benchmarks.
The PSC forged relationships with organisations for People with Disabilities to enable the PSC to meet 2% target for PWD.

An internal newsletter titled Mafhungo was published on a monthly basis as well as a quarterly publication called Izwi lase OPSC, which covered internal events and activities.

In profiling the work of the PSC, during the year under review, the PSC used social media 49 platforms such as Facebook and Twitter to communicate key activities of the Organisation.
Quarterly media briefings based on the PSC’s operations titled, the Pulse of the Public Service, were held, resulting in the PSC reviewing extensive media coverage.

(b) Programme 2: Leadership and Management Practices The purpose of the Programme is to promote sound public service leadership, human resource management, labour relations and labour practices.

The budget allocated for the programme was R42.5 million and the programme spent R42.2 million.

All planned targets were achieved.


Labour relations management forms an integral part of management in a labour intense organisation such as the Public Service.

The PSC is mandate in terms of Section 196 (f) (ii) of the Constitution to investigate grievances of employees in the Public Service.

The concluded 505 (88%) of the 571 grievance cases were registered on its database while 66 (12%) remained pending.
Of the 505 concluded grievance cases, 413 (82%) were concluded within the prescribed timeframes of the Grievance Rules, that is 30 days for levels 1-12 and 45 days for the SMS from date of receipt of the cases.

The PSC is committed to reducing the percentage of cases that remain pending by the end of the financial year through the implementation of an electronic grievance management system that will enhance monitoring processes.
The Constitution further mandates the PSC to monitor and evaluate personnel practices in the public service.

In order to contribute towards effective performance in the public service, the PSC engages with the Executive Authority, Heads of Department and various other stakeholders on key topical issues, monitors human resource practices and priorities strategic research projects in order to address challenges and best practices that can be replicated in the public service.
(c) Programme 3: Monitoring and Evaluation The programme is responsible for establishing a high standard of service delivery, monitoring and good governance in the Public Service.

There are two sub-programmes under the programme, which are Governance Monitoring and Service Delivery and Compliance Evaluations.

The budget allocated to the programme was R39.6 million and the expenditure was R39.5 million.

A total of 100% of the targets were achieved.


49 50 Section 196 (4) (e) of the Constitution requires the PSC to provide an evaluation of the extent to which the values and principles set out in Section 195 are complied with.

These evaluations are meant to go beyond compliance and determining whether the intention of the public administration values and principles are achieved at outcome level.

The Constitutional Values and Principles were designed as a key instrument for governing public administration.
Through, its work on the CVPs, the PSC has mainly focused on the evaluation of national and provincial departments towards an efficient and effective public service that responds to the developmental needs of the society.

The key outputs produced in the year under review include eleven (11) qualitative reports on the Social Development Sector covering National and selected provincial departments of Social Development, Human Settlements (National) and National Treasury.
Furthermore, hundred quantitative reports on the adherence to the CVPs covering selected national and provincial departments.

The PSC further produced the “State of the Public Service” report, which the PSC produces in terms of section 196(4)(e) of the Constitution.
(d) Programme 4: Integrity and Anti-corruption The programme is responsible for undertaking public administration investigations, promoting a high standard of professional ethical conduct amongst public servants and contributing to the prevention and combating of corruption.

There are two sub-programmes; which are Public Administration Investigations and Professional Ethics.

The programme was allocated R52 410 million and spent R52 361 million.
The PSC has the mandate in terms of section 196(4) of the Constitution to investigate either of its own accord or on receipt of any complaint of personnel and public administration practices and to reports to the relevant EAs and legislatures.

The demands on the PSC to conduct investigations have increased over the years.
Broadly, these investigations relate to personnel practices (irregular appointments, transfer, qualifications and compensation related allegations, Supply Chain Management practices and poor service delivery.

In relation to complaints lodged with the PSC, as at March 2019, a total of 283 complaints/request for investigations were on the database of the PSC.

Of the 283 complaints, 193 (68%) were finalised and 90 (32%) were in progress.
a breakdown of the 51 nature of the 283 complaints handled by the PSC during the financial year 2018/19 indicates that 128 complaints (46%) relate to personnel practices and 155 complaints (54%) relate to public administration.

The National Anti-Corruption Hotline plays an integral part to combat corruption in the Public Service.

The PSC registered a total of 51 581 incoming calls and of these, 1278 investigated case reports were generated.
Of the 1278 cases, 1076 warranted further investigations in terms of the existing PSC protocols.

Out of these 1076 cases, 1075 were referred to national and provincial departments and public entities within seven (7) days for investigation.

Of the 1076 cases, 727 cases were referred to the South African Social Security Agency and closed on the Case Management System (CMS) of the NACH as these cases fall outside the mandate of the PSC.
The PSC monitors the implementation of the Financial Disclosure Framework in the public service as part of promoting a high standard of professional ethics.

Section 18(1) mandates all members of the SMS in the public service to disclose all their registrable interests annually to their respective HoDs by no later than 30 April each year and HoDs submit to Executive Authority within 30 days of receipt thereof.
The PSC has scrutinized a total of 10 253 of the financial disclosure forms during the year under review.

The PSC further found that SMS members in departments are still engaged in Remunerative Work Outside the Public Service (RWOPS).

The PSC advised EAs and HoDs to consult with SMS members who did not provide proof of approval to engage in RWOPS to determine if such approval was granted, and if not, consider taking appropriate steps in terms of section 31 of the Public Service Act as amended.
51 52 6.2.2 Auditor-General’s Report for 2017/18 on the PSC (a) Opinion The Auditor-General issued an unqualified audit opinion in respect of the Entity for the 2018/19 financial year.

The Auditor-General reported that financial statements present fairly in all material respects the financial position of the Public Service Commission as at 31 March 2019.
The PSC’s financial performance and cash flows for the 2018/19 were in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act (PFMA).

However, the Auditor-General reported the following matters: Procurement and contract management  One contract relating to IT goods and services, classified as mandatory, was not procured through SITA as required by treasury regulation 16A6.3(e) and section 7(3) of the SITA Act.
Similar non-compliance was also reported in the prior year  Some of the goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by treasury regulation 16A6.1.

Expenditure management Effective and appropriate steps were not taken to prevent irregular expenditure amounting to R980 000, 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 supply chain management regulations relating to a contract identified as irregular in the prior year.

6.3 NATIONAL SCHOOL OF GOVERNMENT The National School of Government received its budget appropriation through budget vote 12 of the Department of Public Service and Administration.
The appropriated funds for the 2018/19 financial year was R168 979 million with the expenditure of R166 802 million which was an increase from R153.9 million budget allocated in 2017/18 financial year.

The National School of Government received clean audit and the NSG Trade Account received an unqualified audit from the Auditor-General.

The School of Government operates a Trading Account for its training operations.
The Department submits separate financial statements for the NSG Training Trading Account 53 (TTA), a trading entity established in terms of the Public Finance Management Act (PFMA).

Course fees are determined on a cost-recovery basis in accordance with Treasury Regulations 19.5.2.

The tariffs are assessed annually and revised as deemed necessary as part of the on-going NSG financial status reviews and in accordance with Treasury Regulation 19.5.3.
6.3.1 Programme Performance (a) Programme 1: Administration The programme governs the overall management of the School and provides for organisational support services enabling the Director-General/Principal, Branch Heads and all employees in the NSG to carry out their responsibilities within an effective governance system.

The responsibilities of this programme include providing administrative, legal, human resource and financial management, across the Department.
The programme comprises of the following sub-programmes: Office of the Principal and Corporate Management.

The programme was allocated R98.8 million for 2018/19 and spending patterns, compared to the 2017/18 financial year.

Expenditure on the programme was R96.6 million.

Compensation of employees for the vote-funded staff component of NSG increased by 6.8% from R50.5 million (2018/19) to R54.2 million, due to salary adjustments.
Goods and services increased by 7.9% from R37.2% million (2017/18) to R40.4 million in 2018/19.

Expenditure on capital assets decreased by 21.0% from R2.3 million (2017/18) to R1.9 million in 2018/19.

The decrease was related to office furniture procurement.

The School developed a five-year Strategic and Annual Performance Plan, which was tabled timeously to the National Treasury, Department of Planning, Monitoring and Evaluation and Parliament.
The vacancy rate was at 9.2% by the end of the 2018/19 financial year.

The average number of days for debt collection was reduced from 48 days in 2017/18 to 46 days in 2018/19 financial year.

Total revenue collected was R146.9 million, which was an increase as compared to R117 million in the 2017/18 financial year.

The School continues to pay all its suppliers within 30 days of receipt of a valid invoice.

However, only one invoice was not paid on time.


The School implemented two agreements supporting international exchanges and capacity building initiatives.

53 54 (b) Programme 2: Public Sector Organisational and Staff Development The main aim of the Public Sector Organisational and Staff Development Programme is to facilitate transfer of payments to the Training Trading Account for management development and the training of public sector employees.
The programme caters for the School Training Trading Account, which comprises of the following three sub- components: the Training Policy and Planning; Training Management and Delivery; and Specialised Services.

The transfer of funds from the Vote to the TTA was R70.2 million in the 2018/19 financial year.

Total revenue (including the transfer of funds from the vote appropriation for this financial year) increased by R45.8 million from R178.6 million (2017/18) to R224.5 million (2018/19).
Income from course fees increased by R33.3% from R101.1 million (2017/18) to R146.8 million (2018/19).

The National School of Government maintained the status of being an accredited training provider by the relevant accrediting bodies.

The School published eight research projects of the targets set in the year under review.

The school completed eight training need s analyses to inform training and development opportunities in the public service.
The School further completed 70 evaluations and 4 applications of learning studies.

As part of ensuring quality assurance, the School developed a curriculum programme and qu ality assured 17 programmes by the Quality Assurance Committee.

Over 25 e-learning interventions were offered to the public servants.

A total of 61 005 current and potential public servants were trained on compulsory and demand –led training on the School curriculum and programmes.
The School had hosted seven research colloquia workshops.

In addition, two articles and three papers published to promote thought leadership knowledge creation and dissemination.

A total of 12 coaches were enrolled to the Executive Coaching Programme by the end of financial year.

In addition, 12 coaches (learners) have been paired with 8 coaches and have completed all the coaching sessions.
A total of 56 614 new and current trained on the Compulsory Induction Programme (CIP) in 2018/19 financial year, which was an increase from 49 050 of public servants in the previous year.

Moreover, a total of 4391 unemployed youth graduates and interns were trained through the Breaking Barrier 2 Entry (BB2E) programme.
This included Political 55 Education Programme for NARYSEC Youth (PEPNAY) for its National Rural Youth Services Corps (NARYSEC) training numbers through the Department of Rural Development and Land Reform partnership.

6.4 Centre for Public Service Innovation The Centre for Public Service Innovation (CPSI) is an entity of the Ministry for the Public Service and Administration established to entrench and drive service delivery innovation across all sectors.
Chapter 3 of the National Development Plan (NDP) states that “Innovation across state, business and social sectors should start to become pervasive”.

The NDP stipulates that innovation should also focus on improved public service delivery and on goods and services aimed at low-income sectors.

The CPSI is bridging the gap between the world of science and technology driven by the National System of Innovation led by the Department of Science and Technology.
The National System of Innovation includes entities such as National Advisory Council on Innovation (NACI), the Innovation Hub and the Technology Innovation Agency (TIA).

The CPSI’s Strategic Plan is aligned to the Government priority outcomes.

The budget of the CPSI is transferred through the budget vote of the Department of Public Service and Administration.
In the 2017/18 financial year, the final appropriation was R36 030 million with the actual expenditure of R33 722 million, which represents 93.6% of budget well spent.

The CPSI was audited by the Auditor-General of South Africa.

During the year under review, the vacancy rate increased to 11% compared to 5% in the 2017/18 financial year.
The employment equity statistics at the end of the financial year were 5.8% in respect of persons with disabilities and 66.67% in respect of women at senior management service (SMS) level.

7.

AUDITOR-GENERAL OUTCOMES 7.1 Audit Opinion The Auditor-General presented the Department with an unqualified audit opinion for the 2018/19 financial year.

This means that the Department’s financial statements present fairly, in all material respects, the financial position of the Department as at 31 March 2019.
The Department’s financial performance and cash flows for the 2018/19 were in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the 55 56 Public Finance Management Act (PFMA).
The Auditor-General, however, drew attention to the following matters: 7.1.1 Irregular expenditure Effective and appropriate steps were not taken to prevent irregular expenditure to R310 000, as disclosed in note 24 to the annual financial statements, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

The irregular expenditure was caused by goods and services with a transaction value below R500 000 which were procured without obtaining the required price quotations.

7.
7.

2 Compliance with legislation In accordance with the PAA and the general notice issued in terms thereof, Auditor-General have a responsibility to report material findings on the compliance of the Department with specific matters in key legislation.

Auditor-General performed procedures to identity findings but not to gather evidence to express assurance.
7.3 Internal control Auditor-General considered internal control relevant to audit of the financial statements, reported performance information 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 findings on compliance with legislation included in the report.
Adequate internal processes were not implemented to prevent non-compliance with certain applicable laws and regulations pertaining to selected supply chain management practices.

8.

OBSERVATIONS AND KEY FINDINGS The Committee made the following observations: 8.1 The Committee notes that the Department of Public Service and Administration and entities received unqualified audit outcomes for 2018/19 financial year.

The National School of Government received clean audit in programme 1.
The Department and the Public Service Commission were advised to lead by example to achieve a clean audit status in future.

8.2 57 The Committee notes the Department’s achievement of 33 out of its 40 (83%) annual targets, while seven were not achieved.

The Department’s performance declined in two consecutive financial years (2017/18 and 2018/19) as compared to the 2016/17 financial year.
Performance decline was attributed to instability in leadership positions at Ministerial level and the Director-General position.

The Committee advised the Department to redouble its efforts in achieving set targets particularly in Programme 5: Service Delivery Support.

8.3 Vacancy rate decreased from 13.85% (2017/18) to 12.90% in the reporting year.

The Committee notes the high vacancy rate at SMS level at 24% in 2018/19 financial year.
The Committee advised the Department to fill such positions once the new organisational structure is approved by the Minister, except urgently in the case of critical posts.

8.4 The Department is lagging behind in terms of gender representivity.

Currently, the Department has 41% of females in SMS level as compared to the previous years which were higher.

The Committee advised the Department to lead by example in achieving 50% of women at SMS levels.
The Committee commends Department for exceeding a national target of 2% employing people with disabilities.

8.5 In light of the Auditor-General’s audit findings, the Department and its entities were required to develop an action plan to address matters raised to avoid recurrence of similar issues in the 2019/20 financial year.

The Committee further advised the Department to develop policy to deal with misconduct.
8.6 With regard to the Public Service Graduate Recruitment Scheme, the Committee was disappointed with the implementation of the framework.

Only 19 departments are implementing the Graduate Recruitment Schemes in the Public Service.

The combined total investment for the 2018/19 and 2019/20 financial years was in excess of R300 million, which has benefited 5 000 graduates.
8.7 The Committee notes the total number of youth appointed in the development programmes from 2014 to 2018 was 149 411 in the public service.

The Committee advised the Department to report annually on the actual number of 57 58 youth appointed per financial year in order to monitor set target against performance on developmental programmes.

8.8 Human Resource Management divisions in the public service have been identified as an area in need of interventions as per MPAT reports.
The Department was advised to identify departments struggling and develop mechanisms to assist with a view to strengthening their human resource capacity.

8.9 The Committee compliments the Department for resolving to induct Executive Authorities of the new Administration in 2019 and beyond, on the issue of Executive delegations to Accounting Officers.

This resulted in improvement on the signing of performance agreements to 127 out of 165 directors- general/Heads of Department.
However, the Committee requests to see a 100% improvement in this regard.

8.10 The Committee was disappointed with the fact that some disciplinary cases drag beyond the set time of 90 days to finalise, in as much as there was improvement in a majority of cases.

However, the costs involved in precautionary suspensions are still high at R27.

1 million nationally and R19.0 in provinces, respectively.
8.11 The Committee compliments the Department for not moving forward with the idea of making the Government Employees Housing Scheme a separate entity in recognition of the economic outlook of the country and Government.

8.12 The Committee noted with delight that the Ministry and the Department are proficiently handling the reconfiguration phases with utmost care for the welfare of public servants affected and for the good of the public service.
8.13 The Committee welcomes the news that the Office of Standards and Compliance is being set up to take care of matters concerning criminality, unethical behaviour and non-compliance with prescripts of good governance.
However, the Committee is disappointed that the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit, which is meant to provide technical assistance and support to institutions in all spheres on the management of ethics, 59 integrity and disciplinary matters relating to misconduct, is still not set up as well.

8.14 The Committee was disappointed that there were still officials doing business with the State when there is legislation succinctly preventing them from doing so.
8.15 The Committee regretted that there were officials who would not attend training when courses were prepaid.

Public Service Commission 8.16 The Committee noted that the setup of administrative process hampers the independence and integrity of the Commission as important governance matters that should be handled by the Commission get relegated to being management issues.
8.17 The Commission expressed unhappiness about their budget coming through the Department and not through Parliament where the Commission accounts.

The previous Portfolio Committee on Public Service and Administration of the Fourth Parliament also expressed its unhappiness about the situation.

8.18 The Committee highlighted that the Commission’s recommendations are useful, and they would change the outlook of the public service if they would be efficiently carried out.
National School of Government 8.19 The Committee noted the work done by the School in ensuring training of public servants and expressed its compliments.

Centre for Public Service Innovation 8.20 The Committee noted the efficacy of the innovation projects and outcomes within the Centre and the public service.

9.
9.

RECOMMENDATIONS 59 60 The following recommendations are proposed: DPSA Legislative and governance matter 9.1 With the legislation in place, the Public Service Regulations 2016 must be amended to empower the Department to institute disciplinary action on its own accord, once officials who continue to do business with the State are found, without waiting on other departments to do so, as it has been proven that they do not normally do so.
Administrative matters 9.2 The Department should urgently improve on its vacancy rate, as this affects service delivery.

9.3 There must be proper controls where permission had been granted to officials to do other remunerative work to ensure that primary employment and service delivery are not affected by the practice.

9.4 The Department should develop systems to properly manage sick and disability leave to prevent abuse by employees.
9.5 Procurement protocol and contract management regarding obtaining requisite quotes, per Treasury Regulations, should be strictly monitored to avoid irregular expenditure.

9.6 The Department should ensure that it issues a defined timeline and to strictly monitor it, once it is informed that certain officials have been placed on precautionary suspension.

This will ensure that the cost of precautionary suspension is minimised or completely prevented.
PSC 9.7 The policy and procedure gaps regarding supply chain management must be addressed to ensure compliance with legislation.

9.8 61 The PSC should evaluate the impact of transfer or movement of the Accounting Officers from one department to the other during Cabinet reshuffling or on account of any other reason on performance in the public service.
NSG 9.9 There must be a mechanism to assess the impact of training courses and programmes offered by the School, besides accreditation, by outsourcing this project to a credible institution, to follow through the cohort of officials who attended programmes, to measure their performance against the programmes they had attended.

9.10 The School must, at the finalisation of all due processes, present to the Committee the curriculum of the Nyukela Programme.
CPSI 9.11 The Committee enjoined the Centre to ensure the replication of innovation outcomes across the public service in order to deliver a better, quicker and less costly service.

THE PORTFOLIO COMMITTEE 9.12 The Committee will strictly monitor and follow through with the recommendations of the Public Service Commission, by calling on departments to account to it on such recommendations, especially where there is no improvement on issues affecting the recommendations.
9.13 The Committee will look into the possibility of amending legislation in order to make recommendations of the Commission legally binding.

9.14 The Committee, with the assistance of the Public Service Commission, will look into delineating governance matters from administrative matters, through amending legislation, so that matters that the Commission wants to address at its level are not relegated to the Office of the Public Service Commission by default of administrative processes.

61 62 10.
61 62 10.

CONCLUSION The Department of the Public Service and Administration has in the 2018/19 financial year continued to implement and coordinate interventions aimed at achieving an efficient, effective and development-oriented public service, which is an essential element of a capable and developmental state.

The Department and entities were able to spend almost their entire allocated budgets, which is commendable.
There must be proper internal controls regarding procurement and contract management processes at the Department and the Public Service Commission.

Report to be considered.

4.
Budgetary Review and Recommendation Report (BRRR) of the Portfolio Committee on Social Development, on the performance of the Department of Social Development and its entities for the 2018/19 financial year, dated 16 October 2019 The Portfolio Committee on Social Development, having considered the performance and the submission to the National Treasury for the medium term period of the Department of Social Development, the South African Social Security Agency (hereafter SASSA or the Agency), and the National Development Agency (hereafter the NDA or Agency) reports as follows: 1.
Introduction The Portfolio Committee on Social Development as an extension of the National Assembly of Parliament is tasked with a mandate to conduct oversight over the Department of Social Development and its entities the South African Social Security Agency (SASSA) and the National Development Agency (NDA).
The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising 63 and overseeing the department’s action, that is driven by the ideal of realising a better quality of life for all people of South Africa.
It is also required to facilitate public participation, monitoring and oversight over the legislative processes relating to social development and also to confer with relevant governmental and civil society organs on social development matters.

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

It monitors whether the Department of Social Development fulfils its mandate according to priorities.
The Committee also has a mandate to perform the following:  Considers legislation referred to it;  Conducts oversight of any organ (s) of the state and constitutional institution(s) falling within its portfolio;  Facilitates appointment of candidates to entities;  Considers international agreements; and  Considers budget of department and entities falling within its portfolio.
For the current medium term (2014 – 2019), the Committee’s oversight focuses on the department and its entities performance with regard to the implementation of the priorities set in the National Development Plan and in the Medium Term Strategic Framework.

The Committee also conducts oversight over the department’s performance in implementing the priorities of the State of the Nation Address (SONA).
National Development Plan (NDP) These are the priorities of the NDP that the Committee focuses on:  establishment of a social floor which outlines an acceptable or decent standard of living,  bringing the informal sector into the mandatory contributory scheme,  expanding social welfare system,   reviewing funding to not-for-profit organisations, training more welfare professionals and community workers,  expanding public employment programmes,  promoting opportunities for youth employment.
 use of social audits to enhance accountability in the welfare system, and 63 64  the integration of all databases of people who receive different forms of social security services.
The Medium Term Strategic Framework (MTSF) These are the priorities of the MTSF that the Committee focuses on:  provision of quality and universal early childhood development (ECD) accessib le to all young children and their caregivers,  universal access to social assistance benefits, at least to 95% of eligible people;  strengthening of community development emphasizing the roles of community- based planning and  profiling of communities, in the process identifying vulnerable households.
2018 State of the Nation Address The 2018 SONA outlined the following policy objectives in the area of Social Development:  The Reducing income poverty by providing social assistance to eligible individuals; Improving service delivery; Improving internal efficiency; and Institutionalising social grants payment system within SASSA.

   1.2 Purpose of the BRRR As part of exercising its oversight work, the Committee considered the 2017/2018 annual reports of the department and its entities.
This BRRR reports on the financial and non- financial performance of the department and its entities.

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

of 2009, the National Assembly (NA) through its committees must annually assess the performance of each national department.
Portfolio Committees must thus annually submit Budget Reviews and Recommendation Reports (BRRRs) for tabling in 65 the NA in order for Parliament to compile a report for the Medium Term Budget Policy Statement.

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

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

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

2.

Methodology The BRRR culminated from a very intense and thorough analysis and interaction with the Department and its entities.
These included a briefing from the Department of Social Development on its quarterly reports, briefings on the annual reports of the department and its entities and a briefing from the Office of the Auditor-General on the audit outcomes of the department’s financial and non-financial performance in the year under review (2018/2019).

3.
3.

Mandate of the Department of Social Development The department derives its mandate from several pieces of legislation and policies, including the White Paper for Social Welfare (1997) and the Population Policy (1998).
The constitutional mandate of the department is to provide sector-wide national leadership in social development by developing and implementing programmes for the eradication of poverty and social protection and development amongst the poorest of the poor and most vulnerable and marginalized.
The department’s mission is “to ensure the provision of comprehensive social protection services against vulnerability and poverty within the constitutional and legislative framework, and to create an enabling environment for sustainable development’’.

The 65 66 Department further aims to deliver integrated, sustainable and quality services, in partnership with all those committed to building a caring society.
The vision of the department is to create a caring and integrated system of social development services that facilitates human development and improves the quality of life.
4.Strategic overview of 2018/19 4.1 Strategic Priorities of Government National Development Plan The vision of the NDP is that by 2030 South Africa would have a comprehensive system of social protection that includes social security grants, mandatory retirement service, risk benefits such as unemployment, death and disability benefits, as well as volu ntary retirement savings.
It proposes, amongst others, defining a social floor, which outlines an acceptable or decent standard of living, bringing the informal sector into the mandatory contributory scheme, expanding public employment programmes, and promoting opportunities for youth employment.

Further, it focuses on expanding social welfare services, reviewing funding to not -for- profit organisations (NPOs), and training more welfare professionals and community workers.
The NDP also proposes the use of social audits to enhance accountability in the welfare system, and the integration of all databases of people who receive different forms of social security services.
The 2018 State of the National Address (SONA) outlined key policy objectives in the area of Social Development; namely to:  Continue expanding Early Childhood Development (ECD) programme;  Create youth employment opportunities;  Support the emerging rural and township SMMEs and cooperatives;  Support and improve interface between the state and non-governmental organisations (NGOs);  Expand economic opportunities for people with disabilities; and  Enforce Batho Pele principles.
67 Medium Term Strategic Framework (MTSF) 2014-2019 The MTSF builds on the significant achievements of the first two decades of democracy.

The MTSF (2014-2019) provides key targets pertaining to the Department and state that:  By 2024, an essential age- and developmentally stage-appropriate package of quality early childhood development (ECD) services is available and accessible to all young children and their caregivers.
 Universal access (at least 95% of eligible people) to social assistance benefits by 2019; notably the child support grant, disability grant and old age pension.

 Work on community development will be strengthened, emphasising the roles of community-based planning and community profiling, in the process identifying vulnerable households.

Support will be provided to establish community-based structures, including cooperatives.
Department of Social Development Strategic Plan (2015-2020) The Department’s Strategic Plan (2015-2020) aims to (a) strengthen community development interventions and child protection services, (b) improve the quality of (i) ECD services, (ii) social crime prevention and victim empowerment in order to reduce the incidence of crime and substance abuse, (c) facilitate the provision of support services to target groups, and (d) strengthen social welfare service delivery through legislative and policy reforms by 2019.
The Department focused on the following key priorities over the 2016/17 -2018/19 Medium Term Expenditure Framework (MTEF):   Increasing access to social assistance; Investing in and increasing access to effective early childhood development services;  Reforming and standardising the social welfare system;  Expanding social development services;  Improving household access to food and nutrition; and  Strengthening community participation in service delivery.

67 68 5.
67 68 5.

Quarterly performance of the department 2018/19 As per the provisions of the Money Bills Amendment Procedures and Related Matters Act, No.

of 2009, the National Assembly committees are required to scrutinise quarterly reports of the department.

The section below highlights the key findings of the Committee over the quarterly performance of the department.
5.1 Programme performance – quarterly achievement of targets & expenditure Table 1: Achievement of targets per quarter Quarters Set Achieved Partially Not Allocated Budget targets targets achieved achieved budget expenditure Quarter 1 55 39 (69%)* 6 (11%) 10 (20%) R391.7 R42.2 targets targets million million (22.4%) Quarter 2 56 26 (65%) 7 (13%) 12 (22% R162.

9 R42.

7 billion billion (24.7%) Quarter 3 56 35 (63%) 10 (18%) 19 (22%) R1.
3 R43.7 million million (25.2%) Quarter 4 55 42 (75%) 5 (9%) 8 (16%) R392.3 R43.9 million million (25.4%) Total 222 142 28 (13%) 49 (22%) R172.8 R172.6 (63%) billion billion (98%)  The department reported 79% achievement in reporting of subsequent quarters 69 The department set to achieve 222 annual targets for the year under review.

For quarters 1 and 4 it set to achieve 55 targets and 56 targets for quarters 2 and 3 respectively.
The achievement of targets in quarters 1 and 4 demonstrated a high performance of 69% and 75% respectively.

For quarters 2 and 3, the achievement of targets dropped to 65% and 63% respectively.

Quarter 2 had a lowest performance at only 26%.

It must however be noted that the department reported on different percentages for Quarter 1 in its programme performance trend when reporting for Quarters 2 – 4.
It reported that the department managed to achieved 79% of planned targets, partially achieved 10.5% (instead of 11%) and not achieved 10.5% (instead of 20%).

It makes it difficult to have an accurate assessment of the department’s performance during Quarter 1.

It indicates a huge discrepancy in the reporting.


5.3 Committee recommendations on quarterly reports 5.3.1 The Minister of Social Development must ensure that:  The department fast-tracks the process to finalise the White Paper on Social Welfare as most of its programmes are linked to this paper.

 The department’s set targets on its quarterly report should reflects timeframes to achieve certain targets.
 The department develops a cost saving business plan to use it as a tool to save costs on certain programmes.

It cautioned that a lot of money was spent on accommodation and S&T for officials.

The department must look at making use fieldworkers to carry out certain projects.
 The department expands its target to present the National Plan of Action for Children in the National Children’s Rights Interpectoral Coordinating Committee to other five remaining provinces, namely, Gauteng, Limpopo, North West, Western Cape and Free State.

69 70  The South African Social Security Agency (SASSA) and the National Development Agency (NDA) should also report on their quarterly performance as from the 2019/2020 financial year.

6.
6.

Annual performance of the department 2018/19 6.1 Programme performance The department’s Annual Report is analysed in conjunction with its 2015–2020 Strategic Plan, which provides valuable information on its annual plans and achievements.

The report also provides information on the operational successes of the department in relation to its programmes and sub-programmes.
The department indicated in its annual report that it reconsidered some of its 2018/19 APP targets, and an errata APP was developed to reflect the revised commitment.

As a results of this revised commitment, Programme has 2 extra targets while Programme 3 has 2 targets not reported on.

The following percentages are therefore based on the initial APP 2018/19 targets that were presented before the Portfolio of Social Development Committee last year on the 25th April 2018.
6.1.1 Programme 1: Administration Objective: To provide leadership, management and support services to the Department and the social development sector.
Table 2: Programme 1: Administration Total targets set Annual Performance Plan (APP) Total targets reflecting in the Annual Report Targets achieved in Annual Report Targets not achieved 6 7 3 3 Targets not reported on/additional 1 additional target from APP Performance success rate 42.9% (as per Annual Report Total budget spent targets) R361.367 million (92.2%) 71 The department’s targets under the Administration programme increased from 6 to 7 as part of the revision of its 2018/19 APP.
The department met 3 out of 7 targets set – resulting in a 42.9% success rate.

The department failed to finalise its organizational structure and that impacted negatively on two targets related to achieving a governance and oversight framework for departmental entities.

None of these two targets were achieved.

The department also failed to achieve its target to establish a National Integrated Social Information System (NISIS) governance framework and to enhance the existing data sources.
This was attributed to the lack of cooperation from identified Social Protection Cluster departments.

The department committed to ameliorate the situation by formalising the NISPIS governing at political level and at steering committee level.

It will also request National Treasury to ring fence a budget for this purpose.

For the year under review, this Programme spent a total of 92.2% as opposed to 99.4% in 2017/2018 financial year.
6.1.2 Programme 2: Social Assistance Objective: To provide social assistance to eligible beneficiaries in terms of the Social Assistance Act 13 of 2004, and its regulations.
Table 3: Programme 2: Social Assistance Total targets set Annual Performance Plan (APP) Total targets reflecting in the Annual Report Targets achieved in Annual Report Targets not achieved Performance success rate Total budget spent 8 8 6 2 75% R162.709 billion (99.9%) This Programme achieved a performance rate of 75%, compared to a 100% achievement in the previous financial year.

It was reported that reasons for non-achievement were beyond the department’s sphere of control.
For an example, the War Veterans Grant depends on the person’s life span, while the Social Relief of Distress (SRD) depends on qualifying criteria, which are needs driven.

71 72 The department set a target to reach 252 833 beneficiaries of SRD for 2018/19 and it reached 443 687 beneficiaries.

This is despite the fact that actual achievement in 2017/2018 amounted to more than double (573 196) the targeted number of 500 000.
This raises a question of how realistic are the department’s projections and setting of targets This Programme spent 99.9% of its allocated budget compared to 98.41% in the previous financial year.

The under-expenditure mainly related to slow spending on SRD and the War Veterans Grant due to lower than anticipated projected beneficiaries.

Some considerations on Social Grants  The South African Social Security Agency (SASSA) is responsible for the administration of social assistance grants.
In the year under review, social grants increased from 17.5 million in the previous financial year to more than 17.8 million.

Out of the 17.8 million beneficiaries receiving social grants, 12.4 million are children benefiting from the Child Support Grant and 3.5 million are older persons.

 Critics have indicated that grants are not indexed against inflation.
The benefit amounts were adjusted during the Medium-Term Budget Policy Statement (MTBPS) to counter inflation, with an average increase of 6% for most grants, which was above inflation.

 The Financial and Fiscal Commission (FFC) indicated that research shows l ittle evidence that an alternative use of resources invested in social grants will lower the poverty head count, poverty gap and poverty severity.
However, some studies indicate that social grants have a positive impact and the CSG in particular, on alleviating poverty and promoting child well-being.

 South Africa has a high unemployment rate, social grants, together with access to quality education, health and social services and other measures, support families to care for their children, and are an essential component of broader social protection strategies to enable all children to realise their full potential.
It is imperative to note that the NDP calls for inclusive economic growth and employment creation as key strategies for tackling the structural causes of poverty and inequality in the country.

Social grants are more likely to reduce economic 73 inequality.

Studies on the impact of the social grant show that it plays a role in lowering the cost of health services and agriculture and food products.
Moreover, the High Level Panel on the Assessment of Key Legislation and the Acceleration of Fundamental Change (HLP) has found that, there is a lack of coordination between the social grant system, community workers and community works programme.
In its report to the Committee on its responses to the HLP findings and recommendations, the department reported that it was working with other government departments with the aim to find strategies and models on how can government services can be linked at both policy level and systems level.

6.1.3 Programme 3: Social Security Policy and Administration Objective: To provide for social security policy development, administrative justice of social grants, and the reduction of incorrect benefits payments.
Table 4: Programme 3: Social Security Policy and Administration Total targets set Annual Performance Plan (APP) Total targets reflecting on the Annual Report Targets achieved in Annual Report Targets not reported on in Annual Report 5 3 3 2 Performance success rate 100% (as per Annual Report Total budget spent Key issues targets) R7.840 million (99.5%)  As stated previously, the department indicated that it reconsidered some of its targets and an errata APP was developed to reflect the revised commitment.
 Out of 5 targets set in the 2018/19 APP, a total of 2 targets were not reported on in the Annual Report.

The following two targets that were not reported: 73 74 o Submit policy on mandatory cover for retirement, disability and survivor benefits to Cabinet approval.

o Submit policy on voluntary inclusion of informal sector workers in social security to Cabinet for approval.
 While the overall programme achieved a 99.5% expenditure rate, the highest under-expenditure was recorded in the Social Security Policy Development sub- programme, which spent 63.7% of its final appropriation.
6.1.4 Programme 4: Welfare Services Policy Development and Implementation Objective: To create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and the provision of support to the implementation agencies.
Table 5: Programme 4: Welfare Services Policy Development and Implementation Total targets set Annual Performance Plan (APP) 23 Total targets reflecting on the Annual Report Targets achieved Targets not achieved Performance success rate Total budget spent 23 14 9 60.9% R1.277 billion (98.2%) The department reported on all 23 targets set under this programme.

Out of the total of 23 targets, 14 were achieved, resulting in 60.9% success rate.
Out of the nine (9) targets not achieved, 6 were linked to actual performance requiring either submission to, or approval by Cabinet.

These include:  The Programme of Action (POA) for Addressing Gender Based Violence due to Cabinet submission order to link it with Femicide Presidential National Submit outcomes.

 The National Drug Master Plan was not submitted to Cabinet because the new Minister recommended for further consultation.
 The National Plan of Action for Children was held back from Cabinet approval to align it with the 6th Administration of government.

75  The Child Care and Protection Policy was not submitted to Cabinet but to the relevant Cabinet committee, which returned it with recommendations.

 The White Paper on Social Development was not submitted to Cabinet.

It will be subject for further stakeholder engagement as directed by MINMEC.
 The National Strategic Framework on Disability Rights awareness campaigns was not submitted to Cabinet for approval.

This was attributed to a moratorium on the filling of posts.

 A final report on the costing of the Victim Empowerment Support Service Bill was not achieved due to the fact that technical experts only commenced their services during the third quarter of the financial year.
Achievements  In terms of Early Childhood Development, the department has set itself a target of monitoring the implementation of the National Integrated Implementation Plan on ECD policy.

The department achieved this target and quarterly progress reports were produced.

 The Children’s Act implementation was monitored as envisaged and the department produced a report on the findings.
Under this Programme, the department spent 98.2% of its allocated budget compared to 95.8% in the previous financial year.

6.1.5 Programme 5: Social Policy and Integrated Service Delivery Objective: To support community development and promote evidence-based policy making in the Department and the Social Development Sector.
Table 6: Programme 5: Social Policy and Integrated Service Delivery Total targets set on Annual Performance Plan (APP) Total targets reflecting on the Annual Report Targets not stated in APP Targets achieved in Annual Report Targets not achieved Success rate 75 18 15 3 13 2 86.7% (as per Annual Report targets) 76 Total budget spent R390.312 million (99.5%) Under this Programme, the department set to achieve 18 targets in the APP but this was revised to 15 targets in the Annual Report.
It managed to achieve 15 targets, marking 86.7% success rate.

It exceeded its target to reach 415 000 vulnerable individuals with food parcels through its Community Nutrition and Development Centres (CNDCs).

It reached 1 160 433 million individuals.

The variation was due to high demand for food by vulnerable people.

The department should thus consider to what extent its targets are realistic to the actual demand.
The department managed to link only 678 cooperatives against a target of 1 000, to its economic opportunities.

This was attributed to the implementation of the National Treasury Reclassification Circular 21 which reviewed the funding model.

It requires that cooperatives to be funded under Goods and Services.

The department reported that cooperatives were significantly affected as they are not acquainted with SCM processes.
The department did not achieve its target of submitting the NPO Amendment Bill to Cabinet due to the delays in phase two of the Socio-Economic Impact Assessment System (SEIAS).

This target was carried over to 2019/20 financial year.

6.2 Conditional grants: anti-substance abuse The department funded four provincial departments, namely; Eastern Cape, Free State, Northern Cape and North West.
The Free State Provincial Department received a total amount of R31 945 million and only spent R272 000, the reason for this under expenditure is that the treatment centre only became fully operational in February 2019.

The appointment of the first staff members took place in September 2018.

7.
7.

Report of the Auditor-General (AG) The department received a qualified audit opinion due to the following findings:  Annual financial statements: 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.
Material misstatements identified by 77 the auditors in the submitted financial statements were not adequately corrected, which resulted in the financial statements receiving a qualified opinion.

 Expenditure management: some payments were not made within 30 days or an agreed period after receipt of an invoice, as required by treasury regulation 8.2.3.
 Procurement and contract management: some of the contracts and quotations were awarded to bidders based on preference points that were not allocated and/or calculated in accordance with the requirements of the Preferential Procurement Policy Framework Act and its regulations related to the awarding of BBBEE points.

 The expenditure relating to social assistance grants was not supported by accurate, sufficient and appropriate evidence.
 Management did not review and monitor compliance with applicable legislation in terms of preferential procurement as the policies and procedures were not updated with the new requirements.

 Noted that Hawks is currently performing investigations on social assistance grants fraud.

The investigations are ongoing.

7.1.

Summary and analysis of annual financial statements Virements At the close of the 2018/19 financial year, the department made no virements.
77 78 Unauthorised, fruitless and wasteful expenditure  During this financial year, 2018/19, the department identified irregular expenditure to the value of R7 611 million compared to R904 million in 2017/18.

The reason for this was (the same as the last financial year) non-compliance to the Public Financial Management Act, 1999 (Act No.

1 of 1999) and National Treasury Practice Notes: SCM processes were not followed.
The department indicated that there was an unforeseen and unavoidable need for additional goods or services during departmental activities.

 Fruitless and wasteful expenditure amounted to R713 million (compared to R528 the previous year).

Increase in the current year relates to hotel no-shows, camera and damage to hired cars.
Steps taken to address and prevent recurrence  Engage with affected officials;  Reviewed financial policies and delegations in line with the National Treasury Practice Notes and Circulars;  Issued circulars to sensitise officials in the Department on the implications of financial misconduct;  Reviewed and strengthened controls where they were found to be weak;  Facilitated, coordinated and provided guidance and advisory services in terms of audit queries through the implementation and monitoring of audit action plans.
Tested the environment to ensure compliance and implementation of actions;  Instituted disciplinary action against officials found liable for irregular, fruitless and wasteful expenditure; and  Recovered expenditure from officials who were found liable for financial misconduct.

8.
8.

Committee observations on the 2018/19 annual report of the department Having considered the briefing by the department, the Committee made the following observations: Service delivery 79  The report of the department did not have enough focus on interventions against gender based violence (GBV) in its APP and annual report.

GBV is a serious matter facing the country.


The department for instance, has an important role to play in the Thuthuzela Care Centres in terms of provision of psychosocial services to the victims of gender based violence.

A Member of the Committee made reference of Thuthuzela Care Centre in Khayelitsha hospital as an example.

The centre only has one (1) social worker, who reported that there was no adequate protection for her especially when perpetrators follow the victims to the centre.
There was also lack of clarity on what services she is expected to render.

In addition, the Committee cautioned the department to not only focus its implementation of programmes against gender based violence on poor areas but on affluent areas as well.

GBV affects all levels of society.

 The report of the department was found wanting with regard to the SMART principle (the relevant tangibles as they relate to the situation of needs of the people).
The programmes of the department focus only on intervention not on the intended change in the lives of the people as far as addressing their vulnerabilities.

Governance  There was a disjuncture between the report of the AG report, the department’s report and the opening remarks of the Minister.

Minister’s remarks resonated with the AG’s findings.

The presentation from the department seemed to paint only a good picture.

9.
9.

Annual assessment of performance of South African Social Security Agency (SASSA or Agency) The mandate for South African Social Security Agency (SASSA) is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.

SASSA sets its performance plans in line with Government Outcome 13 of the Medium Term Strategic Framework (MTSF).

(special focus on items highlighted): 1.

Improved quality of basic education.

2.


A long and healthy life for all South Africans.

79 80 3.

All people in South Africa are and feel safe.

4.

Decent employment through inclusive economic growth.

5.

A skilled and capable workforce to support an inclusive growth path.

6.

An efficient, competitive and responsive economic infrastructure network.

7.

Vibrant, equitable and sustainable rural communities and food security for all.

8.
8.

Sustainable human settlements and improved quality of household life.

9.

A responsive, accountable, effective and efficient local government system.

10.

Environmental assets and natural resources that is well protected and continually enhanced.

11.

Create a better South Africa and contribute to a better and safer Africa and World.

12.

An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship.
The priorities of SASSA for 2014-2019 Medium Term Strategic Framework (MTSF) are as follows:  Reducing income poverty by providing social assistance to eligible individuals;    Improving service delivery; Improving internal efficiency; and Institutionalising social grants payment system within SASSA.

The State of the Nation Address (SONA) also identifies annual priorities which government departments and their entities should base their annual plans on.
There were three (3) priorities that related to the work of SASSA, namely:  creation of youth employment opportunities,  support of emerging rural and township Small Medium & Micro Enterprises (SMMEs) and cooperatives, and  enforcement of Batho Pele principles.
9.1 Overall performance and financial expenditure Table 7: Budget expenditure per programme R’000 Programme 1: Programme 2: Total Administration Benefits Admin 81 R’000 2018/19 Budget 3 046 346 Allocation Support R’000 4 716 532 R’000 7 762 878 2018/19 Actual 2 878 215 3 583 836 6 462 052 (83%) Spent Variance -168 131 -1 132 696 -1 300 827 The overall budget of SASSA for the period under review was R7.

7 billion.

The actual expenditure for the year under review was R6.
4 billion, which was an under expenditure of R1.

3 million.

In the previous year SASSA had an over expenditure of R10 .

9 million out of the actual budget was R7.

2 billion.

Table 8: Achievement of targets Planned Targets 40 Achieved Targets not Targets not Revised Targets Achieved Reported on Targets 29 Percentage 72.5% 11 27.5% 2 5% 2 5% In total, for the year under review, SASSA had set to achieve 40 targets but managed to achieve 29 targets, meaning 11 targets were not achieved.
However, two (2) targets were reported on in the Annual Report but were listed in the Annual Performance Plan (APP).

These are targets to conduct 18 Mikondzo service delivery interventions and implement Integrated Communication and Marketing Strategy.

In the APP, SASSA had set a target to reduce cash pay points by 8%.

It had also set to reduce beneficiaries paid through cash channel by 8%.

Both of these targets were increased to 20%.


It was reported that these targets were increased due to a decision to use South African Post Office for all payments including cash distribution.

The performance of the Agency based on the achievement of targets demonstrates an improvement compared to 2017/2018 financial year.

In that year, it managed to achieve 64% (27) of its 42 planned targets, meaning 15 targets were not achieved.

In 2018/19, it achieved 72.5% of its planned targets.
81 82 9.2 Performance information by programme The Agency functions through two main programmes, namely, Programme 1: Administration and Programme 2: Benefits Administration and Support.

Analysis of the Agency’s performance will be aligned to the achievement of the priorities of the MTEF mentioned earlier as well as the 2018 State of the Nation Address priorities.

These are also aligned to the National Development Plan priorities.
9.2.1 Programme 1: Administration The purpose of this programme is to provide leadership, management and support services to SASSA.

Under this programme, SASSA had planned to achieve 21 targets and it managed to achieve 16 targets.

Linking the achievements of targets to government priorities (including SONA) listed above, SASSA performed as follows:  Improving service delivery: It achieved the target to review its Human Resource Plan as planned.
With the current transition period from outsourced payment of social grants to an in-house payment system it is important for the Agency to ensure that its human resource capacity is able to take over and perform functions previously done by Cash Paymaster Services (CPS).

This function is in the interim done by South African Post Office (SAPO), commercial banks and merchants.

Linked to the above target, was the target to fill 95% of funded posts.
Even though this target is reported as not achieved, the Agency managed to fill 92% of these posts, which marks a deviation of only 3%.

SASSA also achieved its target to finalize its Ten Year Infrastructure Plan.

One of the big challenges faced by SASSA has been lack of appropriate infrastructure at its pay points, service offices and office spaces.

Some regional offices share office space with the Department of Social Development.
Some service offices have been operating in park homes, which compromised confidentiality of beneficiaries’ sensitive information.

These challenges also affected service delivery as these spaces are not ideal to serve a large number of people.

 Improving internal efficiency: 83 To improve efficiency, SASSA achieved its target to conclude the co-sourcing of beneficiary records project which was started in 2016/17 financial year.
For the MTSF, SASSA had set itself a target of automating its business processes and systems to improve efficiency.

This also included scanning hardcopy files of beneficiaries.

It achieved its target of implementing the Enterprise Business Intelligence, which enables it to collect data from internal and external source systems to create monthly reports.

It also achieved the target to upgrade network connectivity infrastructure at its offices.
A total of 116 offices were targeted for upgrade but the Agency managed to upgrade connectivity at 252 offices.

This target was not achieved in 2017/2018 due to a prolonged industrial action at Telkom, which delayed the implementation of this project.

Only Head Office, Regional Offices and Registries were upgraded.

SASSA however, did not achieve the target to implement the Biometric Identity Access Management System for SOCPEN users and beneficiaries due to an internal industrial action.
This target was also not achieved in 2017/18 financial year.

The reason given for the non-achievement was that this project was included in the overall New Insourcing Payment Model as part of SASSA’s Transition Programme.

This critical project has now been delayed for two (2) years.
The project is critical in preventing fraudulent activities in the social payment system, with the recent fraudulent activities involving SASSA officials tampering with beneficiaries’ data and divert payments to unknown beneficiaries.

The non-achievement of this target also delayed preparations towards the institutionalisation of the social grants payment system as was announced as a priority in the 2018 SONA.
Network connectivity of offices, infrastructure upgrades, taking over of the biometric function from CPS, human resource capacity, data management, these are critical functions towards institutionalisation of the social grant payment system.

Nevertheless, SASSA achieved its target to develop a Data Governance Framework, which is aimed at safeguarding the personal information of beneficiaries.
9.2.2 Programme 2: Benefits Administration and Administration and Support 83 84 The purpose of this programme is provide a grant administration service and ensures that operations within SASSA are integrated.

It also ensures implementation of the f ull value chain of grants administration.

For the year under review SASSA had set to achieve 19 targets under this programme.

It managed to achieve 14 targets.


Linking the achievements of targets to government priorities (including SONA) listed above, SASSA performed as follows:  Reducing income poverty by providing social assistance to eligible individuals: SASSA contributes towards poverty alleviation through the payment of social grants, including Social Relief of Distress (SRD).

For the year under review SASSA over achieved its target of increasing grants in payment from 17 509 995 in 2017/18 to 17 811 745.
It awarded SRD to 443 687 applications instead of a target of 252 833.

In terms of alleviating child poverty, SASSA over achieved its target of processing 560 000 applications for social grants for children aged 0 – 1 by processing 702 306 applications.

This age cohort has been prioritised because a 2016 study commissioned by the Department of Social Development, SASSA and UNICEF found that there was a slow uptake (or exclusion) on Child Support Grant of children aged 0 -1.
At the time of reporting there were about 2.5 million children in this age cohort who were excluded due to various reasons including lack of understanding of the means test and lack of documentation.

Ever since the publication of the study, SASSA had made concerted effort to reach these children.

SASSA also achieved its target of processing 130 976 Foster Care Grant reviews by processing 131 341 reviews.

This was however a decline compared to processing 181 305 reviews in 2017/2018 financial year.
This was attributed to systematic management foster care system which result in the lapsing of children who are no longer eligible for the FCG.

 Creation of youth employment opportunities – through SRD As far back as 2010/11 – 2012/13 strategic plan, SASSA identified as a priority to recruit relevant skills from the social grants beneficiaries list in order to fulfill its priority of linking social assistance beneficiaries to sustainable livelihood.
SASSA is implementing this priority by developing economic opportunities and small business through SRD programme.

For the year under review, SASSA awarded R110 million (26.8%) instead of planned R410 million of total SRD rand value through cooperatives.

85 During the past five years, SASSA has ensured that a portion of its SRD awards is through co-operatives (in particular school uniforms and vegetables for food parcels).

The co- operatives used were identified and trained by the NDA.
It is however, not clear whether who benefits from this initiatives, whether the cooperatives are run by youth or women?

 Support of emerging rural and township Small Medium & Micro Enterprises (SMMEs) and cooperatives SASSA contributes to this priority through linking of cooperatives to the SRD programme.
In the Annual Report Foreword Minister Zulu reports that the department, SASSA and the NDA will work together as a portfolio to enhance service delivery with the aim to empower communities to become active citizens.

This will involve partnering with other government departments and state entities.

Government’s procurement and investment will be used in the social assistance programme by linking cooperatives to the SRD programme.
In implementing this priority, SASSA set a target to award 30% (R123 million) of total SRD rand value through cooperatives.

SASSA however managed to award 26.8% (R11 0 163 341) of total rand value.

This was due to some applications processed late in the fourth quarter and so expenditure will be reported in the first quarter of 2019/2020 financial year.

SASSA did not achieve the target to appoint 45 2 nd tier merchants and Cooperative Financial Institutions as alternative pay points.
This model was discontinued because SAPO took on the responsibility to pay grants at pay points.

10.

Findings of the Auditor General (AG) SASSA obtained unqualified audit opinion with findings on compliance from the AG, for the 2018/19 financial year.

This was an improvement from a qualified audit opinion in 2017/18 financial year.
10.1 Summary and analysis of annual financial statements Irregular expenditure 85 86 SASSA incurred an irregular expenditure of R67 million due to payments made on unapproved lease contract extensions and deviations of contract.

The AG found that no appropriate steps were taken to prevent irregular expenditure.
Fruitless and wasteful expenditure The AG also found that steps were no taken to prevent fruitless and wasteful expenditure of R77.8 million which occurred due to payment on services that were not utilized or rendered.

Internal controls The AG found that leadership did not implement effective controls to ensure accurate financial reporting.

It also did not exercise adequate oversight responsibility over compliance with legislation.
These resulted in in material adjustments made to the financial statements as well as instances of irregular expenditure and fruitless and wasteful expenditure not being prevented.

11.

Overview and assessment of performance of the National Development Agency (the NDA or Agency) The NDA is a public entity established by the National Development Agency Act, (No.

108 of 1998) as amended, and reports to Parliament through the Minister of Social Development.
It is listed under Schedule 3A of the Public Finance Management Act (No.

1 of 1999).

The NDA’s primary mandate is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations (CSOs) to among others:  Implement development projects in poor communities, and  Strengthen the institutional capacity of CSOs that provide services to poor communities.
The NDA’s secondary mandate is to:  Promote consultation, dialogue and sharing of development experience between CSOs and relevant organs of state,  Debate development policy, and  Undertake research and publication aimed at providing the basis for development policy.

87 11.1 National Development Agency policy priorities The NDA Board identified four (4) strategic objectives of the NDA for MTSF.
They are as follows:  To develop and strengthen internal systems, processes and human capability to deliver efficiently and effectively on the NDA mandate.

 To conduct CSO engagements, assessments, and needs analysis in the identified prioritised wards.

 To increase accessibility to capacity strengthening interventions to CSOs with the aim of improving the quality of services.

 To conduct, collate and disseminate research and evaluations that inform the national development agenda.
11.2 Overall performance and financial expenditure During the year under review (2018/19), the NDA’s actual expenditure was R226.6 million compared to R230.1 million in the previous year (2017/18).

The entity underspent R20.8 million from its budget of R247.47 million.

Overall expenditure for the 2018/19 financial year amounted to 91.6%.

The NDA raised a revenue of R216 million for 2018/19, which included a transfer of R202 million.
Expenses for the year totalled R226.6 million, resulting in a deficit of R5.123 million.

Administrative expenses for 2018/19 included R54 990 for increase in allowance for losses relating to outstanding debtors, which were approved for being written off.

The NDA had a total number of 17 targets as per APP 2018/19.

As per the annual report, only 10 targets were achieved whilst 7 targets were not fully achieved.

Some targets were exceeded.


The NDA can be commended for its achievements especially where targets were exceeded; however, it must be borne in mind that this may be an indication of poor planning and or low targets set.

In terms of marketing and communication, the Agency managed to reach over 80 000 digital media users through its social media platforms.
These platforms were used to distribute NDA information and to share useful information that could be of benefit to social media visitors who had an interest in NDA operations.

87 88 11.3 Performance information by programme The NDA executes its mandate through 3 programmes.

These are:  Programme 1 - Governance and Administration;  Programme 2 - CSO Development; and  Programme 3 - Research.
11.3.1 Programme 1: Governance and Administration The focus of this programme is on promoting and maintaining organisational excellence and sustainability through effective and efficient administration that includes performance management, employee well-being, as well as cost containment and brand recognition.
Table 12: Programme 1 - Performance on planned targets Total targets set (APP) Targets reported in AR Targets achieved Targets not achieved Performance success rate Total budget spent Expenditure rate 2018/19 4 4 1 3 25 % R101.7 million 91.9% Table above depicts that NDA had set itself a total of 4 targets in the 2018/19 APP and it reported on the same number in its annual report reflects.

The entity in the past has not reported on some targets in annual reports.
NDA achieved one (1) target as reported in the AR.

A total of R101.7 million, or 91.9% was spent during 2018/19 financial year under this programme.

Challenges  The Integrated Human Resource Strategy and Development was developed, but not approved as envisaged in the APP.

The reasons given for this was the absence of the approving authority although it had gone through all the management processes.
89 In terms of Integrated ICT System, the civil society organisation (CSO) Database  was not developed as planned.

 The programme did not comply with all legislation (100%) as it has envisaged; it only achieved 86%.
11.3.2 Programme 2: Civil Society Organisation (CSOs) Development This Programme provides a comprehensive package aimed at developing CSOs to their full potential so as to ensure that CSOs, especially those operating in poor communities, have capabilities to provide quality services to the communities they are serving.
Programme 2 is implemented through four sub-programmes, namely: CSO mobilisation and formalisation; institutional capacity building; resource mobilisation and grant funding; and linkages for sustainability.
Table 13: Programme 2 - Performance on planned targets Total targets set (APP) Targets reported in AR Targets achieved Targets not achieved Performance success rate Total budget spent Expenditure rate 2018/19 9 9 4 5 44.4% R116.8 million 92.4% Programme 2 achieved 4 targets (44.4%) and 5 (55.6%) targets were not fully achieved.

Of targets achieved, most were exceeded.

The expenditure for this programme was 92.4% of its revised budget of R126.4 million.
Achievements  The NDA exceeded its target of 4000 by training 4455 CSOs to comply with registration legislations per year.

This was due to wide access by CSOs of the NDA services.

 It over achieved its target of raising R50 million by raising R147 million during this current financial year.
89 90 Challenges  The target of ensuring that CSOs (7% in disability) receive grant funding per year was not achieved due to delays in concluding assessment and review of proposals submitted for grant funding in this financial year.

 Delays in the finalisation of referrals per year made NDA not to achieve the target of referring CSOs to sustainable resources opportunities.
11.3.3 Programme 3: Civil Society Organisation Capacity-building This Programme focuses on action research and impact evaluative studies that is used to inform Programme planning, implementation and management of NDA CSOs development programmes.

In addition, the Programme promotes and informs national development policy debates and engagements with the CSO sector and stat e organs on issues relating to development and poverty alleviation in general.
It also produces publications and standards for effective best practice in the CSOs sector to promote sharing of lessons and good practice in the social development sector.

Table 14: Programme 3- Performance on planned targets Total targets set (APP) Targets reported in AR Targets achieved Performance success rate Total budget spent Expenditure rate 2018/19 4 4 4 100 % R8.096 million 78.4% Programme 3 achieved 100% of its planned targets, of which 3 exceeded the targets set.
Expenditure under this programme was R8,096 million, but expenditure was 78.4%.

There appears to be some disjuncture between expenditure and performance; the NDA under Programme 3 met all target; yet underspent by 21.6% of its financial resources budgeted.

Achievements 91  The target of producing 23 research reports, and policy briefs per year was achieved.

 The target of providing empirical information from research and evaluation studies was achieved.
The target was achieved through the formation of Umzamo Wethu cooperative, which has shown sustainability of the cooperative business.

The study was done to inform national development policy formulation, debates and engagements between the CSO, public and private sectors.

11.4 Human resources As at 31 March 2018, the NDA employed 196 employees within its total workforce.

The table below summarises the audited expenditure and provides an indication of personnel cost per programme and salary band.
Table 15: Personnel cost by programme Programme Total Personnel Personnel Number Average expenditure expenditure expenditure of personnel for the entity (million) as % of employees cost per (million) programme expenditure employee (R’000) Programme 101.704 47.187 46.4 61 1 Programme 116.817 73.969 63.3% 128 2 Programme 8.096 6.377 78.8% 7 3 Total 226.617 127.533 56.3% 196 773 578 911 651 In terms of personnel cost by programme, the highest expediture is recorded in programme 2 to the value of R74 million, which is 63.3% of the allocated budget.
This is followed by programme 1 which spent R47.2 million on personnel, which is 46.4% of its allocated budget.

Programme 3 expenditure constituted 78.8% of its budget on personnel.

Personnel constitutes a significant proprtion of the NDA’s expenditure; i.e.

56.3%.

91 92 For the period under review, the NDA had a vacancy rate of 10% as opposed to 19% in the previous year 2017/18.

The vacancies are recorded as follow: in Programme 1(5 vacancies) , Programe 2 (20 vacancies) and Programme 3 (1 vacancy).
When these vacancies are broken down, it is represented as: top management (1); senior management (1); professional qualified (12); skilled (5); and unskilled (7).

11.5 Report of the Auditor-General The NDA received an unqualified audit opinion with findings for the 2018/19 financial year.

This means that the AG could obtain audit evidence that is sufficient and appropriate to be able to present an Audit Opinion.
Below, were matters emphasised:  Correction of prior errors: corresponding errors for 2017/18 were restated as a result of an error in financial statements of 2018/19.

 Contingent liabilities: The NDA is facing various litigation cases, which it is opposing.

The ultimate outcome of these ongoing cases could not be determined, and no provision for any liability (in future) was thus made in the financial statements.
Performance information The material findings in respect of the usefulness and reliability of the selected programme are as follows: Various indicators The source information and method of calculation of the achievement of the planned indicators were not clearly defined for the indicators listed below.

Due to these signi ficant inconsistencies, the AG was unable to obtain sufficient appropriate audit evidence for the variance between the planned target and the reported achievement in the annual report.
Furthermore, the supporting evidence did not agree to the reported achievements in the annual performance report.

Consequently, the AG was unable to determine whether any adjustments were required to the reasons for the variances and whether any adjustments were required to the reported achievements in the annual performance report.

Indicator: Number of CSOs (7% in disability) that receive grant funding per year.

93 The indicator was initially approved in the annual performance plan as 250.
However, the indicator was changed without approval and reported in the annual performance report as 250 (18).

The source information and method of calculation for the indicator were not clearly defined and the type of disability was not specified.

Due to these signi ficant inconsistencies, the AG was unable to obtain sufficient appropriate audit evidence to support the reported achievement of 124 (7% in disability 7) CSOs that received grant funding per year.
This was due to inadequate technical indicator descriptions that predetermined how the achievement would be measured, monitored and reported.
The AGSA was unable to confirm the reported achievement of the indicator by alternative means and consequently was unable to determine whether any adjustments were required to the achievement of 124 as reported in the annual performance report Compliance with Legislation The AG found the material findings on compliance with specific matters in key legislation as follows: Annual financial statements  Financial statements were not submitted for auditing within two months after the end of financial year, as required by section 55(1)(c)(i) of the PFMA.
 The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA.
Material misstatements of the cash flow statement, accounting policies and disclosure notes identified by the auditors in the submitted financial statements were corrected and the supporting records were provided, resulting in the financial statements receiving an unqualified audit opinion.

Expenditure management Effective and appropriate steps were not implemented to prevent irregular expenditure amounting to R18 million – mostly caused by non-compliance with SCM processes.
93 94 Consequence management Proper and complete records were not kept as evidence to support investigations into irregular, fruitless and wasteful expenditure.

The AGSA was unable to obtain sufficient evidence of disciplinary steps taken against the relevant officials.
Internal control deficiencies Internal deficiencies are listed due to resulting in finding in annual performance report and compliance with legislation, as identified by the AGSA:  Effective controls were not implemented to ensure accurate financial and performance reporting, and leadership did not exercise adequate oversight responsibility over compliance with applicable legislation.

 Management did not implement proper record keeping in timely manner.
 Management did not prepare regular, accurate and complete financial and performance reports – which were supported and evidence by reliable information.

12.

Committee observations on AG report on the Social Development portfolio Expenditure  The Committee noted with concern the observation of the AG that SASSA conducted investigations on irregular expenditure but these investigations were not concluded.
Although SASSA appeared to be conducting investigations but it accounts for the largest portion of irregular expenditure, which is R1.8 billion.

This tends to be similar to where there is no investigation.

 The Committee was further concerned over the AG finding that the Social Development portfolio regressed in improving key controls and addressing risk areas.

This was the root cause of non-compliance with applicable legislation, policies and directives.
This led to the occurrence of irregular, fruitless and wasteful expenditure.

Senior management at DSD and at its entities (from political/executive to administrative level) failed to respond with the required urgency to AG’s messages to address risks and improve internal controls.

The AG also found that there was a regression in senior management at DSD, SASSA and NDA providing assurance.

95 The Committee is of the opinion that the above findings point to total disregard by management of audit reports.
The findings constitute as huge indictment against the management.

The findings of the AG are a serious matter as they are the basic requirements that management needs to make sure they are in place.

 The Committee was equally concerned about the AG’s finding that instability and prolonged vacancies in key positions at DSD and SASSA can cause a competency gap and affect the rate of improvement in audit outcomes.
It cautions that even though government departments and entities need to be mindful about the fiscal position of the country this should not affect filling in of critical vacancies.

 The Committee was also seriously concerned that the AG found that in the NDA officials who deliberately or negligently ignored their duties and contravened legislation were not held accountable for their actions.

Officials may see such behaviour as acceptable and tolerated.
The Committee emphasised that there is n o self-respecting institution that can carry on like this.

 The AG also found that that audit committees at DSD, SASSA and NDA provided 100% assurance.

However, at senior management level there was 100% non - assurance.

Executive authority provided some assurance.

The Committee felt that this meant senior managers are not influenced by the reports of the internal audit committees.

This translated to similar findings of the AG.

13.
Summary of previous (2017/2018) key financial and performance recommendations of committee and progress made The Portfolio Committee on Social Development, having considered the performance and the submission to the National Treasury for the medium term period of the Department of Social Development, the South African Social Security Agency (hereafter SASSA or the Agency), and the National Development Agency (hereafter the NDA or Agency) reports as follows: 13.1 Department of Social Development  Service delivery Recommendation 95 96 The Minister must ensure that the Department revise its projections on the number of Foster Care and Old Age Grants beneficiaries.
It must make sure that the budget allocation for these grants is accurately aligned to these projections so as to prevent under expenditure in Programme 3: Social Assistance.

The Department should report to Parliament on how it revised these projections on its progress report on the implementation of this report.

Progress: The projections on the number of social grants beneficiaries are done in conjunction with National Treasury.

The methodology used allows a 5% margin of error.


Recommendation The Minister must ensure that the Department prioritises the completion of the construction of the Substance Abuse Centre in the Free State.

The construction should be completed before the end of the current financial year (2018/2019).

Progress: The department is closely monitoring the construction of the Substance Abuse Centre in the Free State.
The Province has recently appointed a new contractor due to poor workmanship of the initial contractor.

Recommendation The Minister must monitor progress and ensure that the Department, as a temporary measure, explores alternative ways to render the needed substance abuse services to the communities.

The Department must make sure that this centre is operational.

The Department should partner with Community Based Organisations (CBOs) who render these services.
This will ensure that the Department does not underspend on operational costs payments.

Progress: No community based organization was appointed as yet, however the National department continues to support the province to be able to provide the much needed service while 97 completing the centre.
There are various organizations available in the province that can play the role of providing the treatment services, this requires the province to identify and appoint one of them to provide the treatment services required .The province has just operationalized substance abuse half way house in Clarence as part of its efforts to fight substance abuse Recommendation The Minister must ensure that the Department strengthens its oversight over SASSA.
Focus should be on ensuring that SASSA complies with Supply Chain Management legislation in its administration of the Social Relief of Distress.

This will avoid the Department incurring irregular expenditure under this programme.

Steps taken by the Department to strengthen its oversight should be reported in the progress report to Parliament on the implementation of the recommendations contained in this report.

Progress: The department has developed the Entity Oversight Framework.
Entity oversight has been prioritised in the Annual Performance Plan for 2019/20.

The Framework will allow the Department to improve its oversight responsibilities over its entities.

Plans are under way to elevate the quarterly Social Assistance Service Delivery Assurance Committee(SASDAC) to perform the oversight function over SASSA, pending the processing of the Social Assistance Amendment Bill to establish the Inspectorate for Social Assistance as a government component, and the.
Finalisation of the review of the SASSA Act to address the governance weaknesses in that legislation.

Furthermore the Department will conduct a forensic audit of the expenditure on Social Relief of Distress to identify and address the specific weaknesses in its implementation.

Recommendation The Minister must make sure that the Department only procures goods from suppliers who meet prescribed minimum threshold for local production and content.
Progress: The procurement of goods from suppliers who meet prescribed minimum threshold for local production and content was also raised by the Auditor General of South Africa 97 98 (AGSA) in their report issued in July 2018.

The Department has since ensured that it procures goods from suppliers who meet prescribed minimum threshold for local production and content.
Recommendation The Minister must ensure that the Department improves under-spending in critical programmes such as Programme 2: Social Assistance.

Particular focus should be on spending on Foster Care Grant.

Progress: The projections on the number of social grants beneficiaries are done in conjunction with National Treasury.

The methodology used allows a 5% margin of error.


Recommendation The Minister must make sure that the Department discontinue the practice of making virements from core programmes to fund non-core activities, such as Subsistence and Travel (S&T) and outreach programmes under Programme 1, sub-programme Ministry.

Progress: Recommendations were implemented and as a result no virements were done in 2018/2019 year end.
Recommendation The Minister must ensure that transfers to the provincial departments for the absorption of social workers is utilised accordingly so as to ensure that the backlog is eliminated.

The national department should improve its monitoring and evaluation and reporting by the provincial departments on this matter.

Progress: This has been escalated into a conditional grant and its implementation is closely monitored on quarterly basis.
All 566 social workers were appointed using the conditional grant.

The national treasury agreed to earmark the funds once they are transferred to 99 equitable share next financial year so that it continues to be used for the purpose it is intended for, that is paying salaries of the absorbed social workers  Governance Recommendation The Minister must make sure that the Department improves its oversight responsibility over its entities.
Oversight should focus on ensuring that SASSA and the NDA address the AG’s audit findings over the regression in the status of internal controls.

Steps taken to improve oversight should be reported to Parliament as part of the progress report on the implementation of the recommendations of this report.

Progress: The department has developed the Entity Oversight Framework.

Entity oversight has been prioritised in the Annual Performance Plan for 2019/20.
The Framework will allow the Department to improve its oversight responsibilities over its entities.

Plans are under way to elevate the quarterly Social Assistance Service Delivery Assurance Committee(SASDAC) to perform the oversight function over SASSA, pending the processing of the Social Assistance Amendment Bill to establish the Inspectorate for Social Assistance as a government component, and the.

Finalisation of the review of the SASSA Act to address the governance weaknesses in that legislation.
Furthermore th e Department will conduct a forensic audit of the expenditure on Social Relief of Distress to identify and address the specific weaknesses in its implementation.

Recommendation The Minister must ensure that the Department during the 2018/2019 financial year develops and implements consequence management policies to hold those responsible for non-compliance with PFMA and SCM regulations, as found by the AG.
Progress: The Department has in place mechanisms to deal with irregular, unauthorized, fruitless and wasteful expenditure.

The Loss Control Committee has been established to deal with all reported cases of financial misconduct.

Consequence management is applied where officials are found guilty if financial misconduct.
13.2 South African Social Security Agency (SASSA) 99 100  Governance Recommendation The Minister must ensure that SASSA puts in place mechanisms to improve the status of its internal controls for risk management and leadership controls.

Progress: a) In 2018/19, SASSA developed measures to improve its internal controls and reduce irregular expenditure.

The measures included amongst others implementation of prevention mechanisms, consequence management, pre-audit of new contracts.
As a result of the intervention, we have seen reduction in the current irregular expenditure (2018/19) which stands at R66 million compared to the previous financial year (2017/18) where the irregular expenditure stood at R224 million.

In addition, the number of financial misconduct cases finalised were increased.
b) During 2019/20 financial year, SASSA will start with the organisational review including review of the service delivery model in order to address the organisational inefficiencies and the capacitation model Recommendation The Minister must ensure that the Agency strives to meet the requirement to employ at least 2% requirement of people with disabilities within its establishment.
Progress: a) In the beginning of the 2018/19 financial year, a decision to place a moratorium on the filling of positions for both Head Office and Regions was made.

The purpose was to improve efficient utilization of existing staff as well as conduct an Organisational review.

The moratorium was later (February 2019) partially uplifted to appoint staff at selected service delivery posts such as SCM and Grant Administrators at local office level.
The moratorium had an effect on the SASSA objective to have at least 95% of the funded posts filled closing the year with only 92% of the funded posts filled.

The moratorium had a knock on effect on the realization of the employment equity quotas.

101 b) By the end of March 2019, the disability quota stood at 1.9% of the filled fund ed posts, which is 153 persons with disabilities in employment against a total of 8 269.
 Expenditure Recommendation The Minister must ensure that SASSA puts in place mechanisms that will hold officials accountable for hotel ‘no shows’ which resulted in fruitless and wasteful expenditure of R419 000.

Focus should be on ensuring that this kind of expenditure is totally avoided.

Progress: a) SASSA incurred R67 579 fruitless and wasteful expenditure relating to Hotel no- shows for the year 2017/18.

This expenditure is comprised of 41 cases.


All Hotel on-show cases of fruitless and wasteful expenditure were investigated and finalized except two that are still being investigated.
The outcome has been detailed below: Progress on Fruitless and Wasteful expenditure: Hotel on-shows: 2017/18 Case Status Write-off Recovery Credit Note Not fruitless (concluded after investigation) Appeal Still under investigation TOTAL number of cases Amount 23 12 1 2 1 2 41 25 409,50 19 718,93 1 575,00 13 000,00 1 460,50 6 415,50 67 579,43 b) The Agency is taking the financial misconducts very seriously and has focused its efforts to implement consequence management accordingly.
The Acting Chief Executive Officer (ACEO) and Chief Financial Officer (CFO) between 19 October 2018 and 02 November 2018 conducted Regional visits to all the 9 regions and Head Office engaging senior managers on their responsibilities to ensure the cases of irregular expenditure, fruitless and wasteful expenditure as well as losses and 101 102 damages should be ceased and those employees who commit these acts are being disciplined.
Recommendation The Minister must also make sure that SASSA’s Supply Chain Management checklist is effectively implemented.

It must achieve its desired intention to completely end irregular expenditure due non-compliance to Supply Chain Management policies.

Steps taken to ensure that this checklist achieves its purpose should be reported to Parliament as part of progress report over the implementation of the BRRR recommendations.
Progress: a) The reviewed SCM compliance checklist was implemented from the 01st April 2018, the review of the checklist is done on a regular basis to address any updates and instruction notes by National Treasury in SCM environment.

b) Oversight function by Head Office has been strengthened as follows:-  Quarterly visits that involves reviews of transactions to ensure that the checklist is implemented and implemented correctly.
 The developed and approved Supply Chain Management (SCM) checklists were used to review existing running contracts for compliance to Supply Chain Management prescripts and procedures.

 The checklist is also used to pre-audit all new contracts within the Agency.

 Contracts and payment batches are reviewed to detect any irregular expenditure for correct disclosure.

 Monthly reporting of Irregular expenditure (IE) by the Regions is a mandatory process.
Recommendation The Minister must ensure that the Agency develops mechanisms to improve the collection of debtors as this has the potential to cause problems in the futur e. Progress: a) The Agency is in a process to conclude appointment of a service provider that will provide a data-based business intelligence that will provide relevant and current 103 information on both businesses, and consumers across economies.
This will ass ist the Finance branch responsible for the collection of debtors to do data cleansing and remove wrong and outdated addresses from both BAS and ORACLE systems; and also access the economic status of both the staff and social assistance debtors.
The Terms of reference has been approved by Bid Adjudication Committee and it is expected that the SCM process will be finalized by 30 April 2019. b) The Agency has done a research on the drivers that influence the increase of the debt book, some of these will require amendment of legislation and policy while certain intervention are being implemented without any delay.

This is meant to reduce the growth of wrong payment by the grant administration processes which lead to increase of the debt book.
The emphasis is on prevention strategies against debt book growth while intensifying recovery initiatives and processes.

c) The Agency is engaged with the process of organizational development, in particular with the establishment of the Debt structure to ensure that approved debt policies and procedures are complied with fully; these are meant to assist in debt collection.

The Organizational Development unit is currently busy with the necessary processes to finalise a due debt management structure.
d) The Finance Branch and Legal department held a workshop to improve and streamline debt management processes.

This workshop held in November 2018 agreed to engage the office of the State Attorney to prioritise collection of debts in particular on those employees that have left the organisation.
13.3 National Development Agency(NDA) Governance Recommendation The Minister must ensure that the NDA strengthens the implementation of leadership control as was highlighted as an area of concern by the Auditor General.

Progress: The Minister has appointed the Board and the CEO of the Agency.

The CEO and the Board have appointed Executives in vacant positions.
103 104 Recommendation The Minister must ensure that the NDA puts mechanisms in place to address the regression in the internal controls relating to financial and performance management in record keeping, as well as performance reporting and compliance with regulations.

These mechanisms should be reported to Parliament as part of the progress report on the implementation of the recommendations of this report.
Progress: The Agency has strengthened the functions of internal audit and appointed a Manager for Risk Management to improve internal controls of the Agency.

The Agency has furthermore implemented an improved organisational performance management system for record keeping and accurate reporting.
Recommendation The Minister must ensure that the NDA improves on its oversight responsibility over the preparation of financial statements, implementation of Human Resource Management, actions plans and policies and procedures.

Progress: The Agency has reviewed some of its financial management and human resources policies and procedures to ensure and enhance the oversight functions of the Minister over the Agency.
Recommendation The Minister must ensure that the NDA take steps to prevent irregular expenditure by ensuring that officials follow all the bidding processes.

The NDA should develop policies and regulations.

Progress: The Agency has reviewed its SCM policies to align to National Treasury regulations and SCM framework to prevent unnecessary irregular expenditure due to noncompliance.

SCM officials have been trained on SCM to improve their understanding of regulations and compliance requirements.

14.
14.

Committee recommendations for 2018/19 BRR Report 105 Having deliberated and made observations on the department and its entities’ annual reports, the Committee recommends the following: Department of Social Development, SASSA and the NDA Reporting on committee recommendations  The Minister must make sure that the department and its entities develop an action plan of implementing the recommendations of the committee.

The action plan should be presented to the committee in its next meeting.
The implementation of the plan should also form part of the quarterly reports of the department and its entities.

Performance reporting  The Minister must ensure that the department reports to the Committee on its mandate and its role in the fight against gender based violence.

 The Minister must ensure that the department commissions an investigation into the state of psychosocial services at Thuthuzela Care Centres.
 The Minister must also ensure that the department employs people with disabilities to at least exceed the 2% target of government.

This is important because the department is entrusted with the constitutional mandate of protecting the rights of vulnerable people.

 The Minister must ensure that the Social Development portfolio in its re - imagination of social transformation aligns its targets to its mandate.
 The Minister must make sure that the Social Development portfolio moves towards evidence based outcomes approach to deliver on its mandate.

The portfolio must strengthen monitoring and evaluation.

It must work with the Departm ent of Planning, Monitoring and Evaluation.

Some of this responsibility must be placed in the Office of the Minister.
Expenditure 105 106  The Minister must ensure that the department, SASSA and the NDA develop an action plan to address control deficiencies and other recommendations of the AG.

This plan should be tabled and presented to the Committee during its next meeting.

It should be submitted to the Committee in advance so that Committee Members can go through it before the meeting.

The implementation of the action plan should form part of the quarterly reports to the committee.
 The Minister should also ensure that the department, SASSA and the NDA finalise investigations on irregular, fruitless and wasteful expenditure.

The report on the outcomes should be submitted to the Committee.

 The Minister should also ensure that the financial expenditure reports are aligned with the non-financial performance or mandate of the department and its entities.

They should indicate how the funds were allocated and spent towards the achievement of performance targets.
Report to be considered 5.

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2018/19 ANNUAL REPORT OF THE SOUTH AFRICAN POLICE SERVICE (SAPS), DATED 16 OCTOBER 2019.

The Portfolio Committee on Police, having considered the financial and service delivery performance of the South African Police Services (SAPS) for the 2018/19 financial year, reports as follows: 1.
INTRODUCTION The Money Bills Procedures and Related Matters Amendment Act, (Act 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.

As part of this process, Portfolio 107 Committees must compile Budgetary Review and Recommendation Reports (BRRRs) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them.
The BRRR s are also source documents for the Standing Committee on Finance when it makes recommendations to the House on the Medium-Term Budget Policy Statement (MTBPS).

The annual review and analysis of performance (entailing both financial and non-financial performance indicators) forms part of this process.

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:  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 has overseen the performance of the Department through regular oversight meetings during the 2018/19 financial year and has tracked progress during the current financial year (2019/20).

The Committee has considered quarterly expenditure reports for 2018/19 financial year.

The Committee was briefed on the annual performance for 2018/19 by the Department on 8-9 October 2019.

The Committee also met with the Auditor-General and SAPS Audit Committee on the audit outcomes on the same day.
Copies of the presentations are available from the Committee Secretary.

The Committee has also considered the Directorate for Priority Crimes Investigation report for the 2018/19 Financial Year.

This report is structured as follows: 107 108  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), priorities stated by the President during his State of the Nation Address (SONA), key departmental policy areas and key priorities of the Portfolio Committee on Police for the 2018/19 financial year.

 Section 3: Report of the Auditor-General of SA (AGSA).

This section provides the key audit findings made by the Office of the AGSA.

 Section 4: Governance.


This section provides an overview of the governance structures of the Department, including risk management, fraud, corruption and consequence management, minimizing conflicts of interest, internal audit and the Audit Committee.

 Section 5: Financial overview.

This section provides an overview of the Departmental expenditure, including irregular expenditure, fruitless and wasteful expenditure and contingent liabilities.

 Section 6: Performance overview.


This section provides an overview of Departmental performance on predetermined key performance indicators and targets.

 Section 7: Committee observations: This section provides a summary of the observations made by the Committee during the 2018/19 Annual Report hearings.

 Section 8: Recommendations.

This section contains the recommendations made by the Committee.

 Section 9: Conclusion.

2.

OVERVIEW OF THE KEY POLICY FOCUS AREAS 2.1.


National Development Plan (NDP) The SAPS in its contribution to the National Development Plan focused on four key pillars for the implementation of the National Development Plan (NDP).

These pillars are listed in the Annual Report and Annual Performance Plan as follows: 1) Strengthening the Criminal Justice System; 2) Professionalisation of the Police; 3) Demilitarisation of the Police; and 4) Building safety using an integrated approach.
109 The implementation of the country’s Vision for 2030 (NDP) is captured in Government’s planning, budgeting and performance reporting cycle, as reflected in the Medium -Term Strategic Framework (MTSF), which extends from 2014 to 2019.
The MTSF includes the following key targets towards the realisation of a South Africa in which all people are and feel safe: 1) 2) A reduction in the number of reported contact crimes; An increase in the proportion of citizens feeling safe when walking alone during the day or at night, as measured in official surveys 3) An increase in the proportion of households that are satisfied with police services in their area, and with the way courts deal with the perpetrators of crime; 4) Improvement in citizens’ perceptions of levels of crime and progress in reducing crime, as measured in official surveys; and 5) An improvement in South Africa’s ranking on the Transparency International Perception Index.
2.2.

State of the Nation Address (SONA) In his February 2019 State of the Nation Address, the President emphasised the fight against gender-based-violence, corruption and community orientated policing.
The President noted that the government has moved towards restoring the stability and credibility of state institutions such as the National Prosecution Authority (NPA), the South African Police Service (SAPS) and the South African Revenue Service (SARS) though appointments to the leadership, establishment of the Nugent Commission of Enquiry and the intention to re- establish the National Security Council.
In addition, the government responded to calls for action by convening a Gender-Based Violence and Femicide Summit to co-ordinate the response to the scourge of gender based violence.

The President listed five priorities for the country in the coming year: 1.

Accelerate inclusive economic growth and create jobs; 2.

Improve the education system and develop the skills that is needed now and into the future; 109 110 3.

Improve the conditions of life for all South Africans, especially the poor; 4.
Step up the fight against corruption and state capture; and 5.

Strengthen the capacity of the state to address the needs of the people.

With respect to safety provision, the President noted that the Community Police Strategy was launched in October 2018 which focussed on building partnerships between the community and the police and making more resources available for better communication in the fight against crime.
The President announced that the Family Violence, Child Protection and Sexual Offences (FCS) units would be strengthened to improve capacity and record keeping.

In view of this and the fight against gender based violence, a Gender Based Summit working group is finalising the Strategic Plan on Gender Based Violence.

The SAPS was in the process of restructuring its resources to local level in order to make the fight against crime more effective.
The President announced the establishment of an Investigating Directorate in the office of the National Director of Public Prosecutions (NDPP) to deal with, and prosecute, serious corruption and associated offences.

The Directorate will focus on the evidence that has emerged from the Zondo Commission of Inquiry into State Capture, other commissions and disciplinary inquiries.
The President pledged to work more closely with civil society organisations to realise the implementation of the decisions of the National Summit on Gender-Based Violence and Femicide.

Lastly, the President announced that drug and alcohol abuse is tearing society apart and that taverns, shebeens and liquor outlets near school premises must be shut down.
2.3 Key priority areas 2.3.1 Ministerial Priorities  Develop and implement a revised policing approach that will address the core mandate of fighting crime;  Directed to reduce murder/attempted murder, house/business robberies, car hijackings, Cash-in-Transit (CIT) heists and crimes against women and children;  Retrain and capacitate all specialised units, increase police visibility, address the backlog of promotions and improve the morale of members; fight corruption, filling of vacant crucial management posts and to capacitate the Directorate for Priority Crimes Investigation (DPCI);  Halve crime in the next decade; 111  Prioritise Gender-Based Violence through implementation of the Gender Based Violence Strategy;  Prioritise the building of community police forums.
2.3.2 SAPS Priorities The SAPS, noting that 2019 is the penultimate –year of the Medium Term Strategic Framework (MTSF) which spans for 2014-2019, has prioritised a number of priority strategies for the 2018/19 financial year.
These include:  Recruitment, Selection and Retention Strategy/Recruitment Strategy  Reviewed SAPS Transformation Plan  Contract Management Strategy  Employee Health and Wellness Strategy  Ethics and Anti-Corruption Strategy (Anti-Corruption)  Community Policing Strategy  Junior Leadership Concept  Anti-Gangsterism Strategy Implementation Plan  Cold Case Strategy The SAPS has committed itself to achieving the National Development Plan targets prioritised in the First State of the Nation address of the Sixth Parliament.
To this end, the SAPS listed the NDP targets as follows; 1) Economic transformation and job creation; 2) Education, skills and health; 3) Consolidating the social wage, through reliable and quality basic services; 4) Spatial integration, human settlements and local government; 5) Social cohesion and safe communities; 6) A capable, ethical and developmental state; and 7) A better Africa and world.

The SAPS has identified and initiated two processes that deals with underperformance.
These are availability of resources that are required to implement the short and medium - term priorities, and the targeted performance that the SAPS has set itself.

The SAPS has 111 112 noted that it requires an integrated approach for the acquisition, distribution and application of all resources.
2.4 Key priorities of the Portfolio Committee on Police 113 Subsequent to the 2018/19 budget hearings, the Portfolio Committee highlighted priorities that the newly appointed Minister and Deputy Minister of Police should focus on, which include: 1.

SAPS must fully resource the top 30 stations with human and material resources that contribute most to crime in order to ensure that it attains critical mass in the fight against crime.

2.
2.

SAPS reports on all IJS projects applications to the Department and Justice and Correctional Services.

3.

The Committee recommends that the building programme of the SAPS in rural areas must be accelerated.

4.

The SAPS sharpen its use of ICT by reviewing its contracts with the SITA and developing its own technology section.

5.

The SAPS prepares a detailed strategy and operational plan to implement the President’s target of a 50% reduction in violent crime.

6.
6.

The SAPS develop clear plans to enhance Border Security and provide it with an update to participate in the Border Management Agency (BMA).

7.

The SAPS collaborates with the IPID and the DPCI on investigating systemi corruption within the ranks of the Department and provide the IPID and DPCI with the required information required to deal with corruption.

8.

The SAPS applies vetting to all police officers responsible for dealing with domestic violence at station level.

9.
9.

The SAPS revises the Victim Friendly Rooms location, volunteers and equipment to and keep proper inspection reports of domestic violence registers.

10.

The SAPS works with the Department of Basic Education and the Metro Police to improve safety services to schools.

11.

The SAPS must do more to trace and recover stolen firearms and increases the sanction for police officers who negligently lose their firearms.

12.
12.

The SAPS urgently makes available human and material resources to the National Anti-Gang Unit and train its members as a matter of priority to fight the gangs across the country.

113 114 13.

The Department reviews its Compensation of Employees allocation against international benchmarks and value for money.

The SAPS should provide the Committee with a breakdown of provincial budgets.

14.
14.

The Committee recommends that the SAPS reviews its APP targets to reflect the new requirements reduction of for violent crime set by the President.

15.

The SAPS must table the SAPS Amendment Bill as a matter of priority in order to align the SAPS Act with the Constitution during the 2019/20 financial year.

3.
3.

REPORT OF THE AUDITOR-GENERAL OF SOUTH AFRICA (AGSA) The Audit Report of the AGSA is the most important independent assessment of the quality of financial statements, including all its disclosures.

The SAPS received a third qualified audit from the AGSA for the 2018/19 financial year.
The opinion was based on the following:  Irregular expenditure: The AG was unable to obtain sufficient appropriate audit evidence that all irregular expenditure incurred for the current and previous years had been properly accounted for.

This was due to payments made in contravention of the Supply Chain Management (SCM) requirements.

Consequently, the AG was unable to determine whether any adjustment was necessary to irregular expenditure stated at R1,183 billion (2018: R1,164 billion).
In addition, the Department did not evaluate the population for similar instances of non- compliance based on the factors as communicated.

Consequently, the AG was unable to determine the full extent of the irregular expenditure as it was impractical to do so, due to management not revisiting the population to quantify the extent of the irregular expenditure.
 Movable tangible assets: The AG was unable to obtain sufficient appropriate audit evidence for the restatement of the corresponding figure for immovable tangible capital assets.

As described in note 31 to the financial statements, the restatement was made to rectify a prior year misstatement, but the restatement could not be substantiated by sufficient and appropriate supporting audit evidence.

The AG could not confirm the restated and current year amounts by alternative means.
Consequently, the AG could 115 not determine whether any adjustment was necessary to the other fixed structures within immovable tangible capital assets figure stated at R3,643 billion (2018: R3,643 billion), in note 31 to the financial statements.

An emphasis of matter was highlighted on the material underspending of R1,131 billion in the Detective Services Programme.

The AG made material findings on the reliability of reported performance information and non- compliance with legislation.
The material findings on reported performance information was largely related to an inadequate performance management system, lack of supporting evidence and lack of an adequate record keeping system.

Significant material findings were made in the Visible Policing, Detective Services and Crime Intelligence Programmes.
Further, in terms of material findings on compliance with legislation, the AG indicated the following -  The financial statements submitted for auditing were not supported by full and proper records as required by section 40(1)(a) of the PFMA.

The supporting records could not be provided subsequently, which resulted in the financial statements receiving a qualified opinion.
 Some of the goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury regulation 16A6.1.

 Some of the goods and services with a transaction value above R500 000 were procured without inviting competitive bids, and deviations were approved by the Accounting Officer, despite it being practical to invite competitive bids, contrary to Treasury regulations 16A6.1 and 16A6.4.
Similar non-compliance was also reported in the prior year.

 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.

As reported in the basis for the qualified opinion, the full extent of the irregular expenditure could not be quantified.
The majority of the irregular expenditure disclosed in the financial statements was caused by competitive bidding process not being followed as required by Treasury regulations.

 Effective internal controls were not in place for the approval and processing of payments as required by Treasury regulation 8.1.1.

Although supply chain delegations were in place, related payments were made without financial delegations.
115 116  In some instances, disciplinary steps were not taken against officials who had incurred and permitted irregular expenditure, as required by section 38(1)(h)(iii) of the PFMA.

No investigations had been conducted and/or finalised by management in some of the cases, while some of these cases had been carried forward from prior years.
In terms of internal control deficiencies, the AG found -  Leadership did not take the appropriate action for irregular expenditure incurred by the Department, resulting in a lack of consequences for certain transgressions of legislation, related to SCM.

 Leadership did not exercise oversight responsibility regarding financial and performance reporting and compliance as well as related internal controls.
 The Department developed an action plan to address audit findings, but the appropriate level of management did not monitor adherence to the plan in a timely manner, resulting in certain repeat findings especially relating to reporting on performance information and SCM.

 Weaknesses in the internal controls relating to systems of maintaining proper records and accessibility to support daily and monthly processing of transactions, resulted in the regressed audit outcomes of predetermined objectives.
 Senior management was slow to implement key controls and address risk areas related to performance information and financial statements, which resulted in uncorrected material misstatements.

 Management did not adequately implement proper preventative reviewing and monitoring controls to prevent non-compliance with legislation, relating to SCM.

The resultant irregular expenditure was also not fully detected and disclosed.
The AG further indicated various investigations relating to instances of transgressions of SCM legislation in previous years.

These investigations have been ongoing for several years with no indicated completion date and no recommendations for implementation with regard to disciplinary and/ or criminal proceedings against transgressors.

4.
4.

GOVERNANCE 4.1 Performance Management 117 The SAPS Audit Committee reported on the performance information management and concluded that the performance management system in its current form did not provide sufficient assurance as to the accuracy and completeness of performance information was concerning.

The Audit Committee flagged the programmes 2,3 & 4 with respect to extracting crime statistics supporting information from information technology systems.
The Audit Committee has committed to further investigate the matter.

Consequence management in the SAPS needs to be addressed as it appears that it did not significantly have the required effect and lead to behaviour change within the department.

The Audit Committee will monitor the department through a structured accountability process, to gauge the progress of the SAPS management with respect to instilling a culture of ownership within the organisation.
4.2 Risk Management The SAPS has faced a number of risks throughout the year under review and the Enterprise Risk Management Committee (ERMC) has not been effective in meeting its obligations.

The ERMC has only met once out of four designated times during the year under review.
Despite the organisational structure of the ERMC being approved with its reporting line directly to the Accounting Officer, the Committee has not been effective, which contributed to the inability of the SAPS to effectively respond to risks within the department.

The composition of the ERMC should be reconstituted to ensure compliance to the Public Sector Framework, whereby the majority of members should be external members, as opposed to the current state.
The process of appointing a Chief Risk Officer and risk practitioners need to be expedited.

It is also important that the Accounting Officer and the entire leadership of the SAPS vigorously drive the agenda of risk management within the organisation 4.3 Combined Assurance During the previous financial years of 2016/2017, as well as 2017/2018, the process of combined assurance was put on hold.
This was due to the changes within leadership of 117 118 the SAPS where the responsible persons involved within this process were rotated to other areas where they were needed.

A resolution was taken on 1 August 2018 for the process to be resuscitated, but it was not implemented.

The Audit Committee has again advised management to implement the resolution.
4.4 Supply Chain Management, Procurement and Contract Management The SAPS Audit Committee has identified that the policies and internal control systems and policies within the Procurement environment is outdated with respect to prescripts from the National Treasury.

As a result, the SAPS has not been able to detect instances of non-compliance and this resulted in significant fruitless, irregular and wasteful expenditure.
The Audit Committee has noted that the SAPS has to legally enforce compliance through a clear action plan with timeframes.

4.5 Financial Management The SAPS internal Committee has noted that despite, its many recommendations, the be department has not fully addressed and implemented the concerns and recommendations with respect to defined management areas.

The SAPS Management has provided assurance that effective corrective action will be implemented, in respect of all internal control weaknesses.
The Audit Committee has requested the Department to review the current Business Agreement with SITA, in order to clarify the roles and responsibility of each one of the parties to the agreement.

This has been a major problem for the SAPS with respect to the immovable tangible assets receiving a qualified audit for the second year in a row.
4.6 Internal Audit and Audit Committee The Audit Committee comprises of the following members:  Ms B Ngunjiri (External);  Mr T Boltman (External);  Mr JE van Heerden (External)(Chairperson);  Mr M Mokwele (External); and  Mr M Karedi (External).

119 The term of the Audit Committee has come to an end on 1 August 2018 and have been appointed on a month to basis until a new Committee is appointed.
The findings of the Audit Committee are included deficiencies in the following areas:  Risk management;  Performance information management;  Procurement and supply chain management;  Contract management;  Asset management; and  Leadership stability.
During the presentation of the Audit Committee on 08 October 2019, the Audit Committee commented on the SAPS internal plan by noting the following:  The Accounting Officer hosted a workshop which was attended by all members of the Board of Commissioners of SAPS and members of the Audit Committee  The aim of the workshop was to develop an action plan to address audit findings / outcomes of both AGSA and Internal Audit  The discussions centered around the following 1.

Identification of root causes 2.


Development of relevant and viable responses (action plans) to the audit outcomes 3.

Responsibilities and accountability 4.

Consequence management 5.

Best practices where clean audits were achieved 6.

Requirements to achieve a clean audit  The Audit Committee was of the opinion that the action plans, if implemented and monitored, would address the matters raised by the auditors and prevent the same of recurring in future.
However, it noted that some of the implementation dates do not seem to be realistic and this was discussed with management  The Audit Committee approved the amendment of the Internal Audit Plan to assist management in improving internal controls in respect of procurement .

The Audit Committee made the following recommendations: 119 120 1.

The established Audit Steering Committees meet on a 2-weekly basis to inter alia monitor the implementation of audit action plans 2.
Management to discuss revising the business agreement with SITA to clarify the roles and responsibilities of each of the parties regarding ownership and control as well as the basis relating to the valuation of the assets 3.

Regular monitoring of progress with the implementation of audit action plans as it is one of the items on the agenda of the Audit Committee 4.
The high level responsibility of the Audit Committee is to assist the Accounting Officer with the effectiveness of the department assurance functions and services with particular focus on combined assurance.

In this regard, a member of the Audit Committee to provide guidance regarding combined assurance and implementation thereof will be availed 5.

We will continue monitoring management’s responses to and implementation of internal audit recommendations 6.
Insist on more effective consequence management processes that could include:  Disciplinary proceedings  Recovery of losses due to irregular expenditure, fruitless and wasteful expenditure, etc.

 Dismissals  Training and development 5.

FINANCIAL OVERVIEW 5.1.

Appropriation statement When considering the financial statements of the SAPS, it is important to keep some perspective on the size thereof.
At R91.4 billion (R91 428 742 000.00) it is the second largest allocation in government and about R1 billion (R916 million) represents 1% of the SAPS budget.

For instance, in 2018/19, the Civilian Secretariat for Police had a budget of R131.2 million and the Independent Police Investigative Directorate (IPID) R315.1 million, which is 0.14% and 0.35% of the SAPS budget respectively.
In 2018/19, the SAPS had an Adjusted and Final Appropriation of R91.68 billion, of which 98.6% was spent at year-end (R1.255 billion unspent).

During 2018/19, the Department made various in-year adjustments to the budget.

The largest of which was a R679.8 million virement from the Administration Programme to defray excess 121 expenditure in the other budget programmes of the Department.
These funds were used to increase the allocation of the Visible Policing Programme with R246.6 million, the Detective Services Programme with R297.6 million, Crime Intelligence Programme with R77.5 million and the Protection and Security Services Programme with R58 million.

Despite the in-year shifts, the Department still underspent.
Table 1: Appropriation statement for 2018/19 Programmes R’000 Adjusted Appropriati on Virement Final Appropriati on Actual Expenditur e Variance Administration Visible Policing Detective Services Crime Intelligence Protection and Security Services Total 19 403 113 46 872 313 (679 872) Source: SAPS 2018/19 Annual Report 1 255 419 % Exp.
of Final Appropriati on 99.3% 100% It is concerning that despite the movement of funds within and amongst the different Programmes to defray excess expenditure and to realise 100% expenditure at year -end, significant underspending of R1.255 billion was still recorded (unspent funds are returned to Treasury).

The under expenditure together with the R150 million saving declared during the adjustments period is unacceptable in light of the current crime situation in South Africa.
Irregular expenditure In 2018/19, the Department had an opening balance of R1.163 billion in irregular expenditure.

This is a significant increase from an opening balance of R20.7 million in the previous financial year.

The SAPS ascribes this to improved processes and controls to detect and confirm alleged irregular transactions in respect of contracts entered into in prior years.
The Department incurred irregular expenditure of R3.565 million in 2018/19, compared to R320 000.00 in the previous financial year.

During 2018/19, insignificant amounts have been condoned, leaving a closing balance of R1.183 billion in irregular expenditure.

121 122 The qualified audit opinion of the AG was in part based on an inability to obtain sufficient audit evidence that all irregular expenditure incurred in the 2018/19 and previous years had been properly accounted for.
This was due to payments made in contravention of the SCM requirements.

The Department also did not evaluate the population for similar instances of non-compliance based on the factors as communicated.

Consequently, the AG was unable to determine the full extent of the irregular expenditure as it was impractical to do so due to management not re-visiting the population to quantify the extent of the irregular expenditure.
Fruitless and Wasteful Expenditure The Department had an opening balance of R8.110 million in fruitless and wasteful expenditure at the start of the 2018/19 financial year.

During 2018/19, the Department incurred R285 000 in fruitless and wasteful expenditure, which is a decrease from R496 000 in the previous financial year.

During 2018/19, R455 000 was resolved and R134 000 transferred to receivables for recovery.
At year-end, the Department had a closing balance of R8.302 million in fruitless and wasteful expenditure.

This means that the Department has significant historic fruitless and wasteful expenditure that has not yet been cleared.

During the year under review, 186 disciplinary steps and liability investigations were launched.

Contingent Liabilities/Civil Claims In 2018/19, the Department allowed for R7.560 billion in contingent liabilities, of which R6.790 billion is for claims against the Department.
During 2018/19, R42.090 million was paid in civil claims.

As part of actions initiated to curb the increase of civil claims, a Management Intervention Project was initiated during 2016.
The project identified 3 8 root causes, of which many lead to civil claims, including (amongst others) -  Unlawful arrests, unlawful detention, damage to property and state property, assault and shooting incidents, due to a lack of compliance with rules and regulations, recruitment choices, poor training and poor command and control, as well as control and political condonation of police violence.

 Motor vehicle accidents (negligence), due to a lack of compliance with rules and regulations.
 Loss of state property, due to a lack of compliance with rules and regulations, resulting from lack of consequences, recruitment choices, poor training and poor command and control.

123 An out-of-court settlement was reached between the SAPS and those representing the Marikana victims and these payments resulted in more expenditure on civil claims than estimated.

5.2.

Programme Expenditure At the end of 2018/19, the Department spent R90.428 billion of its Final appropriation of R91.684 billion.
At year-end, the Department recorded a material underspending of R1.255 billion.

5.2.1 Programme 1: Administration The Administration Programme had an Adjusted Appropriation of R19.403 billion in 2018/19, which was decreased with R679.87 million through various in -year Virements.

The Final Appropriation was R18.724 billion of which R18.6 billion was spent (99.3%), leaving an amount of R122.6 million unspent.

The largest Virements of R658.8 million was made from the Corporate Services sub-programme.
Table 2: Appropriation statement: Administration Programme for 2018/19 Adjusted Sub Appropriat programme ion R’000 Ministry 61 592 Management 80 921 Corporate Services Civilian Secretariat Total 131 219 19 403 113 19 129 381 Virement (11 399) (11 656) (658 817) Final Appropriati on 50 193 69 265 18 472 564 Actual expenditur e 50 193 69 265 18 349 957 Variance % Expenditur e 100% 100% 99.3% - - 122 607 0 131 219 131 219 - 100% (679 872) 18 723 241 18 600 634 122 607 Source: 2018/19 SAPS Annual Report 99.3% The underspending realised, as a result of decreased spending within the implementation of the 7-Point Criminal Justice System (CJS) Plan (more specifically, the Integrated Justice System (IJS) projects), State Information Technology Agency (SITA) service level agreements and hosting, as well as network upgrades within the information technology environment.
5.2.2 Programme 2: Visible Policing The VISPOL Programme had a Main Appropriation budget of R46.87 billion at the start of the 2018/19 financial year, which was half (51%) of the total allocation of the Department.

During the adjustments period no changes were made to the allocation and 123 124 the Adjusted Appropriation remained unchanged.
However, later in-year adjustments were made for R246.64 million –  The allocation of the Crime Prevention sub-programme was increased by a Virement of R194.57, which brought the Final Appropriation to R36.47 billion at year-end.

 The allocation of the Border Security sub-programme was reduced with R79.64 million to a Final Appropriation of R2.021 million.

 The Specialised Interventions sub-programme’s budget was increased by a R256.12 million Virement to a Final Appropriation of R4.63 billion.
The sub - programme recorded an underspending of R1.68 million.

Despite this, the Department recorded 100% expenditure because the amount was so small.
Table 3: Appropriation statement: Visible Policing Programme for 2018/19 Sub programme R’000 Crime Prevention Border Security Specialised Interventions Facilities Total Adjusted Appropriatio n 36 278 902 Virement 194 576 Final Appropriatio n 36 473 478 Actual expenditure Variance 36 473 478 - - 2 101 127 (79 640) 2 021 487 2 021 487 4 383 690 256 120 4 639 810 4 638 130 1 680 4 108 594 46 872 313 Source: SAPS 2018/19 Annual Report 3 984 183 47 118 958 3 984 183 47 117 278 (121 411) 246 645 - 1 680 5.2.3 Programme 3: Detective Services The Detective Services Programme had a Main Appropriation of R18.811 billion at the start of the 2018/19 financial year.
During the adjustments period, R150 million in unspent funds was declared on the budget of the Detective Services for the implementation of the criminal justice system 7-point plan.

This was due to projected underspending as the Department was still in the process of requesting Cabinet’s approval to change the project scope for the programme.

The declared saving led to an Adjusted Appropriation of R18.661 billion.
The Programme’s budget allocation increased by effected virements of R297.6 million throughout the year and had a Final Appropriation of R18.959 billion.

At year -end, R17.828 billion was spent leaving R1.131 billion unspent.

The AG highlighted the material underspending.

125 All sub-programmes, except the DPCI, underspent its budget allocation for 2018/19.
The largest underspending was in the Forensic Science Laboratory sub-programme (R751.35 million underspending), followed by the Criminal Record Centre sub-programme (R263.

78 million underspending) and the Crime Investigations sub-programme (R115.99 million underspending).
Table 4: Appropriation statement: Detective Services Programme for 2018/19 Sub programme R’000 Crime Investigation s Criminal Record Centre Forensic Science Laboratory Specialised Investigation s (DPCI) Total Adjusted Appropriation Virement 12 789 920 (18 103) Final Appropriati on 12 771 817 Actual expenditure Variance % Expenditure Source: SAPS 2018/19 Annual Report 1 131 132 5.2.4 Directorate for Priority Crime Investigation (DPCI) Establishment and mandate The DPCI was established as an independent Directorate within the SAPS, in terms of Section 17C of the SAPS Act, 1995 (Act No 68 of 1995), as amended.
The insert below reflects the establishment and composition of the DPCI, in terms of Section 17C.
In terms of Section 17D of the SAPS Act, 1995 (Act No 68 of 1995), the mandate of the DPCI is as follows: (1) The functions of the Directorate are to prevent, combat and investigate — (a) National Priority Offences, which in the opinion of the National Head of the Directorate need to be addressed by the Directorate; (Aa) offences referred to in Chapter 2 and Section 34 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No 12 of 2004); and (2) If, during the course of an investigation by the Directorate, evidence of any other crime is detected and the National Head of the Directorate considers it in the interests of 125 126 justice or in the public interest, he or she may extend the investigation so as to include any offence which he or she suspects to be connected with the subject of the investigation.
Performance Despite capacity constraints, the DPCI achieved 100% of its seven performance indicators for the 2018/19 financial year.

A permanent National Head of the DPCI was appointed in May 2018.

DPCI Budget allocation Since the establishment of the Directorate there has been significant challenges in its reporting.

Section 17K of the SAPS Act prescribes clear reporting requirements by the DPCI to Parliament for oversight.
It states - 17K (2) The National Commissioner shall include in the annual report to Parliament in terms of section 40 (d) of the Public Finance Management Act, 1999 (Act 1 of 1999), a report in respect of the performance of the Directorate compiled by the National Head of the Directorate as a separate programme.

(2A) The budget report to Parliament shall include a full breakdown of the specific and exclusive budget of the Directorate.
(2B) The National Head of the Directorate shall make a presentation to Parliament on the budget of the Directorate.

The section dealing with the DPCI in the 2018/19 Annual Report does not provide a specific and clear breakdown of the budget of the Directorate.

Although it is included in the Appropriation Statement of the Department (p. 364 of the Annual Report), the breakdown should be included in the DPCI section for ease of reference and public record.
The DPCI received an Adjusted Appropriation of R1.617 billion in 2018/19.

An in-year virement of R9.96 million was made to increase the allocation of the DPCI to a Final Appropriation of R1.627 billion at year-end of which 100% was spent.

In terms of changes to the budget, the following should be noted –  R6.6 million was moved from Goods and services to Households, but a virement of R5.8 million was made back to Goods and services.

 R8.6 million virement was made to Compensation of employees.
The table below shows the shift and virements to the 2018/19 budget allocation of the DPCI.
Table 5: DPCI Budget and expenditure for 2018/19 Adjusted Appropriati on 1 563 534 Shifts Virement (6 611) 14 456 Final Appropriati on 1 571 379 Actual expenditure Variance 1 571 379 1 321 982 0 8 600 1 330 582 1 330 582 241 552 (6 611) 5 856 240 797 240 797 12 662 6 611 1 048 (68) 0 0 19 273 19 273 980 980 11 614 41 311 6 679 0 0 (4 487) 18 293 36 824 18 293 36 824 0 0 0 0 0 0 0 0 0 0 0 0 0 127 % Expenditur e 100% 100% 100% 100% 100% 100% 100% 100% Sub programme R’000 Current payments Compensati on of employees Goods and services Transfers and subsidies Provinces and municipaliti es Households Payment for capital assets Buildings and other fixed structures Machinery and equipment Total 41 311 0 (4 487) 36 824 36 824 0 100% 1 617 507 0 9 969 1 627 476 100% Source: SAPS 2018/19 Annual Report 1 627 476 0 5.2.5 Programme 4: Crime Intelligence The Programme received an Adjusted Appropriation of R3.804 billion in 2018/19.
During the latter part of the financial year, R77.5 million was move to the Programme, which increased the allocation towards a Final Appropriation of R3.88 billi on at year-end.

The largest increase was made to the Intelligence and Information Management sub - programme (R54.56 million).
Table 6: Appropriation statement: Crime Intelligence Programme for 2018/19 Sub programme R’000 Crime Intelligence Operations Intelligence and Information Management Total Adjusted Appropriation Virement Final Appropriation Actual expenditure Source: SAPS 2018/19 Annual Report 5.2.6 Programme 5: Protection and Security Services 127 128 The Protection and Security Services Programme received an Adjusted Appropriation of R2.942 billion in 2018/19.
Through the year, the allocation of the Programme incr eased with R58.054 million (virements), of which R45 million was for VIP Protection and R19.2 million to Static and Mobile Security.

Most of funds moved to the VIP Protection sub-programme came from the Government Security Regulator (R27.5 million).

This sub- programme received a main allocation of R112.1 million at the start of the 2018/19 financial year, which decreased to R82.2 million at the end of the financial year.
Table 7: Appropriation statement: Protection and Security Services Programme 2018/19 Sub programme R’000 VIP Protection Static and Mobile Security Government Security Regulator Operational Support Total Adjusted Appropriation 1 528 343 1 062 132 Virement 45 030 19 283 Final Appropriation 1 573 373 1 081 415 Actual expenditure 1 573 373 1 081 415 84 676 (2 425) 82 224 82 224 267 224 (3 807) 263 417 263 417 2 942 375 58 054 3 000 429 3 000 429 Source: SAPS 2018/19 Annual Report Increased spending on compensation of employees necessitated the virement (1.97% of the total).
Compensation of employees contributes to a weight of more than 89% of the Protection and Security Services Programme.

Budget reductions on compensation of employees introduced in a previous MTEF, overtime payable to, regrading of pro tectors and housing rental allowance delinked and extended to spouses, in terms of a PSCBC agreement, contributed towards the compensation pressures.
National Treasury’s approval was obtained to shift funding from perceived underperforming projects in othe r programmes to compensation of employees in Programme 5.

6 SERVICE DELIVERY AND PERFORMANCE OVERVIEW 2018/19 129 6.2 Overall performance The overall performance of the Department on defined performance targets declined from 78.3% in 2017/18 to an achievement rate of 74.1% in 2018/19.

The programme performance of three of the five SAPS programmes showed a decline in attaining performance targets.
The Administration, Visible Policing and the Protection and Security Services programmes all showed regression in their performance.
The Detective Services and Crime Intelligence programmes showed a slight improvement on the previous year’s achievement The Administration programme spent 95.8% of its budget allocation resulting in a net underspending of 3.5%, Visible Policing programme marginally overspent by 0.35%, the Detectives programme overspent by 1.59%, the Crime Intelligence programme by 2.04% and the Protection and Security programme overspent by 1.97%.
The point should be made that the programme performance does not follow the financial spending and budget on its programme.

The focus of oversight should be placed on the quality of performance indicators and targets and whether these measure an improvement in service delivery.

6.3 Programme 1: Administration The Administration programme has achieved 20 out of 30 performance targets, giving it an achievement rate of 66.7%.

This is a significant decrease from 79% in 2017/18 to 66.7% in 2018/19.
In 2018/19, the key (and historic) areas of underperformance in the Administration Programme was on capital works and maintenance projects.

In terms of capital works projects, four out of 12 projects were completed and 38 from 85 maintenance projects completed.

None of the four targeted detention facilities was maintained.

Another key area relates to Information Systems (IS) and Information Technology and Communication (ITC) infrastructure.
In 2018/19, the Department aimed to enhance IS and ICT to support the business objectives of the SAPS, however –  The planned target to achieve 95% of ICT infrastructure deliverables was not achieved (73% actual achieved),  The planned target to have 85% of IS Solutions developed, implemented and maintained was not achieved (actual achievement was 78%); and 129 130  The planned target to have 85% of IS/ICT governance deliverables was not achieved (actual achievement was 78%).
The underperformance on IS/ICT project deliverables hampers the SAPS to police smarter and prohibits the SAPS to fully engage in the Fourth Industrial Revolution.

The impact of SAPS’s dependence on external stakeholders, like DPW and SITA must be addressed as a matter of urgency and solutions found.
But, it should be noted that evidence-based research done by the Parliamentary Research Unit shows that delays in the completion of capital works projects remain constant regardless of a police station being devolved from DPW or not.

In fact, police stations built by the SAPS often have longer time delays and higher cost escalations.

The Programme was unable to finalise the targeted 90% of firearm applications within 90 working days.
At year-end, 70.31% (69 770 from 99 236) of applications received were finalised.

The underperformance was ascribed to the slowness of the ICT system during peak-hours.
The underspending realised, as a result of decreased spending within the implementation of the 7-Point Criminal Justice System (CJS) Plan (more specifically, the Integrated Justice System (IJS) projects), State Information Technology Agency (SITA) service level agreements and hosting, as well as network upgrades within the information technology environment.
6.3.1 Human Resource Management The SAPS staff establishment and human resources exceeded the set target of m aintaining a minimum workforce of 98%, in terms of the approved establishment which was 192 431.

At the end of the financial year on 31 March 2019, the SAPS maintained 99.92% of the target and had a staff establishment of 192 277.
The following facts of the Human Resource Management of the SAPS pertains:  The Department managed to maintain a staff compliment of 99,92% or 192 277, in relation to the planned target of 192 431.

 During the 2018/19 financial year, the Department spent R71.28 billion on Compensation of employees.

 During 2018/2019, the average employee turnover rate was 3,0%.

This represents a marginal increase from 2,7%, in 2017/2018.
The loss of critical skills is monitored, on a monthly basis, by means of workforce analysis by the respective 131 environments, to direct proactive interventions.

The filling of critical vacancies within six months after the post became vacant, is prioritised.

 Resignations contributed significantly towards the number of exits recorded in the 2018/2019 financial year, followed by retirements.

Resignations increased from 2 039, in 2017/2018, to 2 180, in 2018/2019.
 Retirements increased from 1 412, in 2017/2018, to 1 781, in 2018/2019.

 Sick and incapacity leave days taken by employees, during January 2018 to December 2018 decreased with 149 942 days (8,9%), from 1 676 391 days, during January 2017 to December 2017, to 1 526 449 days, during January 2018 to December 2018.

In 2018/19, the Department had a fixed establishment of 192 277 employees, of which 150 855 are SAPS Act employees and 41 22 are Public Service Act employees.
Compared to the previous financial year’s establishment of 193 297, the Department’s current fixed establishment decreased.

Over the last six years (2013/14 – 2018/19), 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 2013/14, the police/population ratio was one police member to 346 citizens (1:346) compared to a police/population ratio of one police member to 383 citizens (1:383) in 2018/19.

The table below illustrates the changes in police/pollution ratio between 2013/14 and 2018/19.
Table 8: Changes in the police/population ration over five years Financial year Fixed Establishment Police/Population ratio 2013/14 194 852 1:346 2014/15 193 692 1:358 2015/16 194 730 1:362 201617 194 605 1:369 2017/18 193 297 1:375 2018/19 192 277 1:383 Source: SAPS 2018/19 Annual Report In 2018/19, 5 742 employees left the Department, of which 2 180 employees resigned, 1 781 employees retired and 909 employees passed away.
In 2017/18, Section 35 terminations were awarded to three Lieutenant Generals (one less than the previous financial year).

The amount paid by SAPS to the employees amounted 131 132 to R12 948 075.20 (R12.9 million).

The payment included leave-gratuity, pro-rata service bonuses, severance package and notice period.

Two Regulation 45 appointments/promotions were made in 2018/19.

One promotion was from a Constable to a Warrant Officer and the other from a Warrant Officer to a Captain.
Regulation 45(9) of SAPS Employment Regulations of 2008, provides that the National Commissioner may promote an employee into a post without advertising it, and without following a selection process.

This section of the Employment Regulations has been an area of serious contention in the past.

During a Portfolio Committee meeting that focused on SAPS promotions, POPCRU stated that regulation 45 proportions are grossly misused and that the careers of many police members had been stifled by this misuse.
6.4.

Programme 2: Visible Policing The Visible Policing programme is the biggest programme in the Department and has the biggest budget.

The Visible Policing programme achievement on performance indicators decreased from 83% in 2017/18 to 73.5% in 2018/19.

While the Border Security and Specialised Interventions Sub-programmes achieved 100% of its predetermined performance targets, the Crime Prevention Sub-programme only achieved 14 from 23 targets (69.8% achievement rate).
The performance of the Visible Policing (VISPOL) Programme should be read together with the 2018/19 crime statistics, as crime prevention falls within the ambit of the programme.

Overall, a 0.7% increase has been recorded on the 17-Community Reported Serious Crimes in 2018/19.

Target to reduce reported serious crimes, contact crimes, crimes against women, crimes against children and contact-related crimes could not be realised, as increases were recorded in these categories of crime.
The target to increase the number of crimes for unlawful possession and dealing in drugs by 47.36% to 480 385 cases was not achieved.

The VISPOL Programme aimed to maintain the number of stolen/robbed vehicles recovered at 36 548, but this was not realised.

At year-end, 28 418 vehicles were recovered (8 130 less).

The underperformance is based on inadequate intelligence-driven operations.

The Programme was unable to finalise the targeted 90% of firearm applications within 90 working days.
At year-end, 70.31% (69 770 from 99 236) of applications received were 133 finalised.

The underperformance was ascribed to the slowness of the ICT system during peak-hours.

6.5.

Detective Services programme The performance of the Detective Services Programme increased from 74% in 2017/18 to 82.1%.

The Programme achieved 32 from 39 performance targets.

The Specialised Investigations sub-programme houses the Directorate for Priority Crime Investigation (DPCI)(Hawks).
The DPCI achieved 100% of its predetermined performance targets.
The Crime Investigations sub-programme underperformed on four performance targets, these were –  Target to achieve a detection rate of 37% for serious crime was not realised (actual achievement was 36.37%)  Target to achieve a detection rate of 55% for contact crime was not realised (actual achievement was 50.58%)  Target to achieve a detection rate of 70% for crimes committed against children (under the age of 18) was not realised (actual achievement was 69.19%)  Target to achieve a detection rate of 36.75% for other serious crimes was not realised (actual achievement was 36.16%) The Criminal Record Centre sub-programme achieved 100% of predetermined performance targets.
The Forensic Science Laboratory sub-programme underperformed on three performance targets, including –  Target to finalise 75% of routine case exhibits (entries) within 35 calendar days was not realised (actual achievement was 71.92%)  Target to finalise 95% of Ballistics (IBIS) Intelligence case exhibits was not realised (actual achievement was 90.66%)  Target to finalise 80% of DNA intelligence cases within 90 calendar days was not realised (actual achievement was 79.58%) 6.6 Directorate for Priority Crimes Investigation Despite capacity constraints, the DPCI achieved 100% of its seven performance indicators for the 2018/19 financial year.
A permanent National Head of the DPCI was appoint ed in May 2018.

133 134 6.6.1 Specialised units Towards mid-2016, the National Bureau for Illegal Firearm Control and Priority Violent Crime (NBIFCPVC) and South African Narcotics Enforcement Bureau (SANEB) were established with an interim capacity.

The units fall under the command of the Serious Organised Crime Investigation Division of the DPCI.
In March 2017, the Organisational Development Component of the South African Police Service (SAPS) was conducting a work-study to determine the organisational structure of the Specialised DPCI Units.

The work-study has been completed, as the Component is currently in the process of optimising the capacity of the units.

However, the capacitation of the units, both in terms of financial and human resources, remains a key challenge for the DPCI.
6.6.2 Personnel In 2009, a fixed establishment of 3 366 was granted to the Directorate, from which only 2 517 personnel were appointed, which is a deficit of 25,2%.

Post an evaluation by the National Head and the Organisational Development Component of the SAPS, it was determined that a fixed establishment of 5 332 is required, in order to optimally fulfil the mandate of the Directorate.
6.6.3 Workload Approximately 18 086 case dockets with an estimated 83 736 charges are being investigated by the Directorate.

These investigations are against approximately 17 338 accused persons.

As at 31 March 2019, approximately 1 800 dockets were submitted to the NPA for decision.

6.6.4 Office accommodation.


Significant challenges were identified regarding the office accommodation of the DPCI, including: 1) Western Cape Province  Pinnacle Building (Bellville): A monthly lease is in place up until the Department of Public Works has concluded the process of engaging the landlord to conclude the lease agreement.

 Old SARS Building (Bellville): This is a state owned building and has been condemned by the Department of Labour.
2) North West Province VM Building (Klerksdorp): Expiry of lease contract and insufficient office accommodation.

3) Eastern Cape Province (Mthatha): Disruptive renovations.

135 4) Limpopo Province (106 Hans van Rensburg, 70 Grobler Street, 21 Market Street and Thoyandou Office): Insufficient office accommodation.

5) Security/Access: With the assistance of the Division Protection and Security Services (PSS) of the SAPS, requirements for security and access to these buildings will be determined.
6.7 Crime Intelligence programme The performance of the Crime Intelligence Programme declined compared to the previous financial year.

In 2017/18, the Programme achieved 73% compared to 66.6% in 2018/19.

The Programme achieved 12 from 18 performance targets.

Despite the appointment of a permanent Divisional Head during the period under review, performance did not improve.

The Intelligence and Information Management sub-programme only realised half of its performance targets.
Significant concerns were raised by the Committee on the lack of Crime Intelligence in dealing decisively with information and reacting proactively to security threats tha t lead to instability and not having a positive impact on crime reduction.

The Programme was unable to conduct network operations to infiltrate criminal groupings and collect intelligence on priority threats.

During 2018/19, 311 network operations were terminated in relation to 879 identified.
This is a deviation of 64.63% of the planned target.

The Programme was unable to operationalise 39.68% of proactive intelligence reports.

During 2018/19, 48 517 from 80 428 reports were operationalised.

This is ascrib ed to inadequate application of internal control measures within the Department.

Furthermore, the Programme failed to operationalise more than half (56.1%) of reactive intelligence reports, which was also ascribed to inadequate application of internal cont rols.
The performance targets on the number of global threat assessments and persons of interest report generated by the Programme is based on reports received by the SAPS Liaison Officers.

In 2018/19, one less report was received in both areas, which led to the underperformance.

6.8 Programme 5: Protection and Security Services 135 136 The performance of the Protection and Security Services Programme decreased from 86% in 2017/18 to 78.6% in 2018/19.

In 2018/19, 11 from 14 performance targets were achieved.
The Protection and Security Services component achieved 75% of its targets, while the Presidential Protection Services component achieved 66.6% of its performance targets.

The underperformance of the Presidential Protection Services components is due to o nly nine from 14 National Key Points (NKP) that were evaluated.

One NKP is on sale and the process of declassifying is underway.

One NKP was not assessed due to the lack of DPW implementing the SAPS security recommendations.
The underperformance in the Protection and Security Services component was due to three static security breaches at government installations and VIP residences.

These breaches included -  Housebreaking at the residence of the Deputy Minister of Trade and Industry;  Shooting incident at the Parliamentary precinct; and  Shooting at the Pan African Parliament, Midrand.
7 COMMITTEE OBSERVATIONS The Committee made the following observations: 7.2 INTERNAL AND EXTERNAL AUDITS Adverse audit findings: During 2017/18 financial year, the Committee expressed its misgivings about the Department’s ability to turn the adverse audit opinion around and devoted its entire session to the financial management and response to the AGSA and Audit Committee findings and recommendations.

During the 2018/19 financial year, the SAPS has again attained a qualified audit opinion.
The Committee was addressed by the Audit Committee who agreed with the AGSA findings.

The Committee noted that there were elements of disjuncture between the SAPS Audit Committee and the AGSA as a result of the apparent unwillingness of the SAPS management to authorize a data dump for the AGSA to verify the authenticity of transactions.
Full Disclosure on Irregular Expenditure: The Committee noted that the AGSA has stated that it doubted the SAPS has made full disclosure with respect to all Irregular Expenditure it has incurred.

This is concerning in view of the fact that the AGSA noted 137 in the prior financial year (2017/18) that the Irregular Expenditure was not a full disclosure.
Consequence Management on Irregular Expenditure: The Committee wanted to know in view of the astronomical amount for irregular expenditure, whether the SAPS would be applying consequence management.

The Committee also questioned the AGSA about the AGSA’s new power to make remedial action recommendations and submit a letter of debt.

The Committee was concerned that the SAPS is not implementing the AGSA recommendations for a third year in row.
IJS Revamp Spending: The Committee raised concern about the report of the AGSA which stated that the SAPS did not apply the necessary financial controls with respect to spending for projects in the Integrated Justice System.

Of the 13 projects, the SAPS did not achieve 11 and made changes to the projects without the approval of the IJS Board.

It appeared to the AGSA that the SAPS operated autonomously and did not subject themselves to scrutiny.
SAPS Audit Committee: The Committee noted that the term of the SAPS Audit Committee had come to an end in August 2018 and was concerned about the fact that Audit Committee members were appointed on a month to month basis.

Although SAPS responded by saying that the adverts were placed for a new Audit Committee, the Committee was not satisfied that it operated for a year without a fully constituted Audit Committee.

A new Audit Committee will be appointed by 1 November 2019.
Combined Assurance Model: The Committee noted that the SAPS Audit Committee has supported the re-establishment of the Combined Assurance model as previously requested.

One of the reasons for the disclaimer according to the Audit Committee, is that the department’s procurement and supply chain management systems are outdated and cannot detect irregular expenditure.
Enterprise Risk Management Committee: The Committee noted the report of the Audit Committee that the ERMC, although having been resuscitated, has only had one meeting.

Members expressed their misgivings that the Committee was reporting directly to the Accounting Officer and not to the Chief Financial Officer.

The SAPS was urged by the 137 138 Committee to make sure that the Chief Risk Practitioner is appointed and that the ERMC meets regularly as required.
Supply Chain Management (SCM): The Committee expressed its concerns about the significant risk the SCM poses to the Department with respect to its management of procurement processes.

It was clear that the recommendations from the previous Committee Budget Review and Recommendation Report was not implemented.

Members of the Committee noted that the AGSA was not able to audit R9.3 million because of missing information from SCM.
Data retrieval for AGSA: The Committee noted that the was a difference of opinion between the request of the AGSA for the SAPS to perform a data transfer and the response of the SAPS Audit Committee who indicated that it would require the CAS system to shut down for take three days to make it the data transfer possible as it involve millions of transactions.

The Committee noted that the information was required for the AGSA to verify the transactions.
7.3 ADMINISTRATION PROGRAMME Performance management information: The Committee noted the question of the reliability and accuracy of the performance management information.

The AGSA noted that the Crime Intelligence division did not have adequate record keeping system as it was highly dependent on manual systems in the CI environment.
The Committee noted that the SAPS has a comprehensive readiness plan in which they respond to the AGSA and the SAPS has asked all Divisional Commissioners to respond by 21 October 2019.

Supply Chain Management: The Department reported that Supply Chain Management and Technology Management sections were undergoing a process of corporate renewal and that the FDA contracts are being disposed of.
The Committee noted that the SAPS as per the SCOPA decisions, would take over four ICT systems and the process is being ratified by National Treasury.

The Committee demanded that the SAPS display robust leadership with the suppliers as non-delivery of supplies directly affects service delivery.

There had to consequences for suppliers who do not deliver.

139 Data migration: The Committee noted the response by the SAPS that data migration to the AGSA has inherent security risks associated with it.
However, the Committee was of the opinion that the data should be made available to AGSA from SITA.

Disclosure of SITA Network Assets: The Committee noted the third consecutive finding by the AGSA on the non-disclosure of SITA network assets on the Asset Register.

The Committee notes that no remedial action was taken and again this resulted in a qualification from the AGSA.
The Committee must place on record that it requires of the SAPS to take seriously the findings of the AGSA and to implement the recommendations.

The Committee noted that it will meet with SITA to address this matter.

Chief Risk Officer: The Committee noted that the Department will appoint a Chief Risk Officer by 1 November 2019 and this will assist with the Department of implementing an Enterprise Risk Management Strategy.
Capital Works programme: The Committee expressed concern over the fact that the Department only were able to identify four building projects in the Capital Works programme.

It was concerning that not one of the projects were completed and at the current pace, it will take a very long time for the Department to complete.

The Committee urged the SAPS to do proper project planning and execute it timeously.
The Committee, while noting the challenges faced by the SAPS with partners, called on the SAPS to make the necessary arrangements to ensure that police stations and mobile police stations are provided, especially in areas that require them.

In addition, the Committee noted the fact that the SAPS have prioritised upgrading at the cells at police stations, when police stations require upgrading as there was a police station without a roof.
The Committee questioned whether there was a problem with the Department of Public Works with provision of services and wanted to know whether the Department of Defence and Military Veterans could be used to complete the buildings.

Co-operation on Cybercrime: The Committee appealed to the SAPS management to invest its resources in fighting cybercrime through co-operation with other departments.

It implored the SAPS to go to London to do another study on cyber-crime and the methods used to fight it.
The Committee asked the SAPS to prepare a document as to what the Committee could do to assist the Department in fighting crime and make it available.

The 139 140 Committee pledged to assist the SAPS by meeting the Department of Home Affairs to share data in order to make the fight against crime more effective.

Employment of people with disabilities: The Committee noted that the SAPS did not reach the set target of 2% employment of people with disabilities.
The Committee urged the SAPS to do more to make it possible for people with disabilities to join the ranks of the SAPS.

It was not good enough for the Department to say it did not reach its target when disabled people are victims of crime themselves.

The Committee urged the Department to meet with non-governmental organisations to make it possible.
Quarterly Monitoring of Underspending: The Committee noted that it will engaged in rigorous quarterly monitoring of quarterly reports with respect to underspending of the budget.

7.4 VISIBLE POLICING PROGRAMME Community Policing Forums (CPFs): The Committee noted that the CPFs are essential partners in the fight against crime.

The National Drug Master plan is designed to deal with the scourge of drugs in the community and amongst the youth of the country.
The Committee urged the SAPS to include the CPFs in the planning of awareness programmes to ensure that the communities are engaged to assist in the fight against crime.

The Department was also urged to include the CPFs in its outreach programmes.

CPF and Neighbourhood Watches (NHW): The Committee questioned the inclusivity and legal framework for the operation of the CPFs and structures such as the NHWs.
The Department responded by indicating that the CPF is a police-led and recognised structure and takes precedence.

The NHW only exist within the framework of the CPF.

A provincial community police strategy workshop will be held in the Western Cape which will clarify the policy framework which resort under the umbrella of the national community policing policy framework.

Victim friendly rooms (VFRs): The Committee questioned the provision of Victim Friendly Rooms at police stations across the country.
The Committee wanted answers on how many VFRs there were at police stations, whether they equipped with human a nd 141 material resources to provide assistance to victims and survivors of crime.

Members were concerned about the state of such rooms as victims of rape and sexual abuse required privacy when relating their cases.
The Department reported that 984 out 1140 stations has had VFS training of members Reservists: The Committee questioned whether the SAPS still wanted to have reservists in view of the fact that the number of reservists has decreased to 10 144.

Reservists were essential in fighting crime and the Committee wanted to know if there was a different training capacity required to fight crime.
The National Commissioner reported that the Department viewed the reservists as critical and he had issued call up instructions and R15 million was set aside for the maximum recruitment drive.

Police Firearms: The Committee was surprised to hear from the SAPS that it firearms issued to members from stock was not dot-peen marked.
A total number of 5 269 pistols (3 745) and R5 Assault Rifles (1 524) were distributed from the buffer stock, but were not dot-peen marked or Integrated Ballistic Identification System (IBIS) tested.

This serious cause for concern and the Committee questioned how the SAPS could have issued these firearms when they were not IBIS tested or dot-peen marked.

Firearms Control: The Committee raised serious concerns about the Central Firearms Registry’s ability to effectively process firearm applications.
The Committee noted that the North West Province provided a directive on renewal of firearm licenses, which was not in line with other provinces.

The training of Designated Firearm Officers (DFO’s) was questioned as they are providing different directives in different provinces.

Members also questioned what happens with people who did not apply in time for their licenses.
The SAPS pointed out that it had a turnaround strategy dealing with firearms and the CFR and would require more time to present it to the Committee.

The SAPS reported that a new instruction will be put out to all DFO’s in a few days’ time.

The DFOs are trained and capacitated.

High profile cases: The Committee expressed its concern that in high profile cases where the accused were business people, lawyers and a well- known person, the police treated the accused differently.
These individuals in cases of rape for example comes with high powered lawyers and the SAPS do not in some cases, open cases against them.

This was 141 142 of serious concern to the Committee and asked that the Department apply equal treatment to all the accused, despite their social class or standing.

Crime Pattern Analysis: Members challenged how the SAPS was compiling and using the crime pattern analysis to deploy its resources to fight crime.
Members pointed to the fact that Brown’s Street in Mamelodi is well known for being where you can buy the drug Nyaope, and the fact that this is still happening despite the police knowing about it, shows that the crime pattern analysis is not used by SAPS.

School Safety: The Committee pointed out that school safety was critical to ensure a healthy learning and teaching environment.
The SAPS has pointed out that it has deployed police officers to all schools and the Committee indicated that it did not see the results of this as violence and shooting were still happening at schools.

The Committee asked that the SAPS provide the names of schools where they deployed members.

Top 30 Stations for violent crime: The Committee noted its serious concern that there appear to be little movement on the stations that are on the top 30 crime stations.
In order to see progress in the fight against crime, the SAPS ought to be working towards a situation where some of the stations are removed from the list.

The SAPS reported that they have instructed their crime statistics practitioners to convene a round-table discussion and get to the root causes.

The Committee noted that the SAPS reported that there are also top 30 and top 40 stations in the provinces and that a few stations have been removed from the list.
The focus of the SAPS is to remove them from the list.

Foreigners and crime: Members raised concerns about the number of foreign nationals involved in crime.

They wanted answers as to how many foreigners have entered the country and whether the SAPS was managing the situation.

The SAPS reported that they have compiled such figures, but have provided it to the International Relations Minister when requested.

They did not want to divulge such figures publicly given the xenophobic outbursts.
Rural Safety strategy: The Committee noted that the Department was launching a new Rural Safety Strategy in Limpopo province.

The Committee was invited to attend.

Members of the Committee thanked the SAPS for its commitment to work towards rural safety and involving local community members in the initiative.
143 Provincial Reports: The Committee noted that there must be regular reports from the Provincial Commissioners about the state of crime in their provinces, budgets, spending patterns and attainment of key performance areas (KPAs).

The Committee requires a closed report of all their KPAs not attained and the reasons for not reaching quarterly targets.
7.5 DETECTIVE SERVICES PROGRAMME Detection rates for violent crime: The Committee raised concern about the low target set for detection of serious crime and felt that it was far too low to make a meaningful dent in the high crime rates.

The Committee called on the SAPS to review the detection rates.

Results of toxicology tests: The Committee was not satisfied that the SAPS is waiting between 1-10 years for toxicology reports in cases of violent crime.
This was unacceptable to the Committee and the department was asked to speed up the results by drastically reducing the waiting period.

The SAPS responded by indicating that toxicology reports for blood results is normally handled by the Department of Health and they interact with the department.

The Department went on to explain that that there are backlogs with inquest dockets and long winded investigations takes time.
As far as DNA analysis are concerned, one machine costs R33 million for only one part of the evidence collection chain.

Availability of forensic science laboratory consumables (DNA kits): The Committee noted the shortage of DNA rape kits at police stations and raised its concerns with respect to victims of crime.

The Department responded that plans have been put in place to confirm that all police stations have an adequate number of kits currently available.
Involvement of parolees in crime: The Committee heard the department indicate that parolees are involved in further crimes and that in one case, a convicted offender was sentenced to 15 years in prison for a crime.

He was released in parole and shot another man who drive into his wall during his parole period.

This was a huge concern to the SAPS as they are now experiencing problems with parolees returning to crime.
143 144 Directorate for Priority Crimes Investigation (DPCI): The Committee noted that the DPCI was understaffed and was operating at 50% capacity in its investigations.

Despite this it achieved 100% of its targets.

The Committee welcomed the performance and indicated that the DPCI must be fully resourced in order to make a meanin gful contribution to reducing organised crime and corruption.

The SAPS responded that they were focusing on repetitive practices with respect to illicit money flows.
The DPCI needs judicial discretion as they have to prove extenuating circumstances in the state capture investigations.

High profile investigations: The Committee questioned the progress in the high profile investigations such as the Steinhoff investigation.

The DPCI responded by noting that they still have to appoint a chartered accountant to the investigations team.
7.6 CRIME INTELLIGENCE PROGRAMME Low Targets: The Committee questioned the efficacy of the Crime Intelligence if its targets were as low as 1/3 of their capacity.

It was made clear that the situation was unwelcome and that the situation should change as it was expected for the big criminal syndicates to be investigated and brought down.

The Department responded by saying that it has identified 879 syndicates which is being investigated.
It was pointed out that the Annual Report was unfortunate in only noting areas of under-achievement.

It takes three to six months to do the investigation and they would continue with this year’s financial term investigations.

Crime Intelligence will stop all registrations by end of November to prevent the carryover and they are responsible for identifying threats through early warning systems.
Part of this has been working with other units and they were able to issue over 40 000 early warnings on possible crimes.

They are now following up with the units how they processed the early warning systems.

Vetting: The Committee indicated that the vetting of personnel must be enhanced.

The Committee also asked that Crime Intelligence consider vetting the members of the CPFs.
7.7 PROTECTION AND SECURITY SERVICES PROGRAMME 145 Security at Parliament: The Committee questioned how firearms were smuggled into the parliamentary precinct and why it was undetected that led to the death of a parliamentary staff member.

8.

COMMITTEE RECOMMENDATIONS The Committee recommends the following: 1) The SAPS must urgently implement its Audit Action plan to address the qualified audit opinion.

The SAPS must report on a quarterly basis to the Committee on implementation progress.
2) National Commissioner must meet with the Audit Committee on a quarterly basis.

This responsibility should not be delegated to Deputy National Commissioners.

3) The SAPS must make full disclosure with respect to all Irregular Expenditure to the AGSA.

4) The SAPS should implement consequence management for those involved and authorised Irregular Expenditure.

5) The SAPS must provide a full report on why it did not implement the eleven IJS Revamp projects.
6) The SAPS must appoint a new Audit Committee and it should be in place not later than 1 November 2019.

7) The Enterprise Risk Management Committee must meet at least four times every year and must report to the CFO and the National Commissioner.

8) The SAPS must appoint a Chief Risk Officer before the end of the financial year.

9) The SAPS must re-establish the Combined Assurance Model to mitigate the outdated procurement and supply chain management systems that did not pick up irregular expenditure.
10) The SAPS must urgently revise the Supply Chain management systems and make the necessary ICT changes that would allow it flag suspicious procurement processes.

A review of performance indicators and target must be prioritised to ensure that they reflect Departmental performance and encourage service delivery.
11) The Department should find ways and means to provide the required data to the AGSA in order for them to verify the accuracy of transactions without compromising the security of the data held by the SAPS.

The SAPS should 145 146 negotiate with SITA and the AGSA for a smooth data retrieval process without closing down the CAS system.
ADMINISTRATION PROGRAMME 12) The Department should provide the AGSA with all the required information in order to ensure the accuracy and reliability of the performance management system by end of October 2019.

13) The Department should display robust leadership with suppliers who do not meet delivery deadlines and end contracts, especially those relating to ICT contracts.

The Committee supports the SAPS in taking over the four ICT contracts previously held by FDA.
14) The SAPS should take responsibility for the fact that it received a disclaimer from the AGSA on the non-disclosure of network assets.

The Committee recommends that consequence management must be applied to the SAPS personnel who do not implement the recommendations of the AGSA.

15) The Department should prioritise the Capital works building programme and complete the incomplete building projects.
The Department should apply consequence management for project managers who do not oversee the progress of the projects.

16) The Department should investigate using the Department of Defence and Military Veterans to complete building projects that have stalled.

17) The Department should meet with non-governmental organisations to source people with disabilities in order to achieve its target of a 2% employment .
18) The Department should co-operate with other government departments on cybercrime and research what the standards of other countries are dealing with cybercrime as it poses a real threat to the country.

The Committee will meet with the Department of Home Affairs to consider the integration of the databases of the two departments.

19) The Department must compile a document that the indicates what the Committee could do to assist the SAPS to fight crime.
VISIBLE POLICING PROGRAMME 20) The Department must include community police forums in all its outreach and awareness planning and events.

147 21) The Department must work with the Civilian Secretariat for Police Services to finalise the role of Neighbourhood watches within the CPF.

The Department must assist in reducing the tensions between NHWs and CPFs.

22) The Department must provide and equip all victim friendly rooms with required equipment and staffing resources, particularly community counsellors.
23) The SAPS should recruit more reservists to assist in the fight against crime.

24) The Department should make sure that all police stock firearms must be dot -peen marked and sent for ballistic testing before being issued to members.

All the firearms not dot-peen marked and issued should retrieved from members and the firearms must be dot-peen marked and sent for ballistic testing before being re- issued.
25) The Department should make its turnaround plan for the Central Firearms Registry available to the Committee and present on it.

26) The Department should reduce the number of stations on the Top 30 station list and move towards permanently removing them from such a list.

The Department requires solid action plans for each of the stations listed on the Top 30 station list.
27) The Department must reconsider how it uses the crime pattern analysis and deployment of resources as the drug dealing in Brown Road in Mamelodi still continues.

28) The Department must make available the list of all the schools where police officers have been deployed around the country.

29) The Committee welcomed the re-launch of the Rural Safety Strategy.

DETECTIVES PROGRAMME 30) The Department must review the way high profile cases are treated from an investigative process.
The Committee noted that victims of crime are not considered when high profile individuals are accused of rape.

The Department must make sure that complainants are treated with due care and all accused must treated equally, and not receive preferential treatment due to their social standing or public status.

31) The Department must review the low detection rates set as targets for the detectives.
The detection rates are too low and require upward revision if there is to be a significant dent in crime and if the President’s call for halving of violent crime is to be implemented.

147 148 32) The Department must speed up the resources to make toxicology results available in a far shorter time.

The Department must develop an action plan after meeting with the department of health in this regard.
33) The Department must take all available measures to make sure that all police stations have DNA rape kits.

34) The Department must meet with its partners in Correctional Services and the Justice and Correctional Services Department to consider strategies to deal with parolees getting involved in crimes.

35) The Department should speed up the Steinhoff investigation by appointing a Chartered accountant to the investigative team.

The Department must start processing the Zondo Commission investigations.
36) The DPCI must fill all outstanding vacancies in its staff establishment.

CRIME INTELLIGENCE 37) The Department must address the very targets in the crime intelligence environment with a view of moving it upwards.

38) The Department must make preparations implement vetting of CPF executive committees.
PROTECTION AND SECURITY SERVICES PROGRAMME 39) The Department should provide a review of the security procedures at National Key-Points such as Parliament in view of the shooting of one of the staff members who was able to smuggle a firearm onto the premises.

8 CONCLUSION The Committee emphasised the need for the SAPS to improve its audit outcomes and welcomed the audit action response plan of the Department.
The Committee pledged to hold the Department to quarterly meetings where it will account for its implementation of such audit action plans.

The Committee pledged to work closely with the SAPS management to assist with the Department receiving a clean audit in the next financial year.

Report to be considered.

149 6.

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE CIVILIAN SECRETARIAT FOR POLICE SERVICE (CSPS) 2018/19 ANNUAL REPORT, DATED 16 OCTOBER 2019.
The Portfolio Committee on Police, having considered the financial and service delivery performance of the Civilian Secretariat for Police Services (CSPS) for the 2018/19 financial year, reports as follows: 1.

INTRODUCTION The Money Bills Procedures and Related Matters Amendment Act, (Act 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.
As part of this process, Portfolio Committees must compile Budgetary Review and Recommendation Reports (BRRR s) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them.

The BRRRs are also source documents for the Standing Committee on Finance when it makes recommendations to the House of Parliament on the Medium-Term Budget Policy Statement (MTBPS).
The annual review and analysis of performance (entailing both financial and non-financial performance indicators) forms part of this process.

The Committee is guided by its interest to promote effectiveness, efficiency and professional policing in South Africa.
The mandate of the Committee is therefore to fulfil its constitutional function through the following means:  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 149 150  Engage, participate and oversee international treaties and protocols.
The Committee has overseen the performance of the Civilian Secretariat for Police Service (CSPS) through regular oversight meetings during the 2018/19 financial year and has tracked progress during the current financial year (2019/20).

The Committee has considered quarterly expenditure reports for 2018/19.

The Committee was briefed on the annual performance for 2018/19 by the Department on 10 October 2019.
The Committee also met with the Auditor-General of South Africa (AGSA) on the audit outcomes on 8 October 2019.

The Committee has already considered and reported on the respective strategic plans and budget proposals of the Directorate for 2018/19.

The National Forensic Oversight and Ethics Board did not submit its 2018/19 Annual Report to Parliament.

This report is structured as follows:  Section 1: Introduction.
The section sets out the mandate of the Committee, the purpose of this report and the process to develop this report.

 Section 2: Overview of key policy focus areas.

The section includes an overview of the strategic goals of the Department, the outcomes of the Medium Term Strategic Framework (MTSF) and the Department’s contributions to the National Development Plan (NDP).

 Section 3: Report of the Auditor General of South Africa.
The section provides the key audit findings made by the Office of the AGSA.

 Section 4: Governance.

The section provides an overview of the governance structures of the Department.

 Section 5: Financial overview 2018/19.

The section provides an overview of the Departmental expenditure, including irregular expenditure, fruitless and wasteful expenditure and contingent liabilities.

 Section 6: Performance overview 2018/19.


The section provides an overview of Departmental performance on predetermined key performance indicators and targets.

 Section 7: Committee observations.

The section provides a summary of the observations made by the Committee during the 2018/19 Annual Report hearings.

151  Section 8: Recommendations and reporting requirements.
The section contains the recommendations made by the Committee as well as written responses reports requested during the Annual Report hearings.

 Section 9: Conclusion.

The section contains concluding remarks of the Committee.

2.

KEY STRATEGIC PRIORITIES The strategic goals of the Department are:  A well advised and supported Minister for a service delivery oriented police service that is accountable.
 Quality, timeous, evidence-based strategic research, policy advice and legislative support to the Minister  Deepened public participation in the fight against crime.

 Enhanced accountability and transformation of the police service.
The work of the Department is guided by the following outcomes of the Medium Term Strategic Framework (MTSF):  Outcome 3: All people are and feel safe;  Outcome 12: An efficient, effective and development oriented public service; and  Outcome 14: Nation building and social cohesion.
The contribution of the Department to the National Development Plan focuses on the following areas:  Strengthening the Criminal Justice System;  Professionalisation of the Police Service; and  Demilitarisation of the police service.

 Building safety using an integrated approach, and  Build community participation in safety 3.

REPORT OF THE AUDITOR GENERAL OF SA (AGSA) The CSPS received an unqualified opinion with no material findings (clean audit) in 2018/19.
This the second consecutive year that the Department achieved the objective of an unqualified audit with no material findings.

151 152 The Department received a second consecutive unqualified opinion with no material findings (clean audit) in 2018/19.

A clean audit means that the Department had:  Credible and reliable financial statements that are free of material misstatements;  Useful and reliable performance as measured against predetermined objectives; and  Compliance with key legislation.
In terms of matters of emphasis, the AG identified material underspending of the budget in that the Department materially underspent the budget by R1.365 million on Programme 1, R2.369 million on Programme 2 and R2.615 million on Programme 4.

The AG made no material findings on the reliability and usefulness of reported performance.
Material misstatements were identified in the reported performance information of Programme 2: Intersectoral Coordination and Strategic Partnerships, but was corrected and as such, the AGSA did not raise a material finding thereon.

This is a significant improvement from the nine material findings of the previous financial year.

The AGSA found no significant deficiencies in internal control mechanisms.

4.
4.

GOVERNANCE The mandate of the Civilian Secretariat for Police Service is derived from Section 208 of the Constitution of the RSA,1996 and the Civilian Secretariat for Police Service Act, 2011.

The broad mandate of the Civilian Secretariat for Police Service is to:  Provide the Minister with policy advice and research support.

 Develop departmental policy through qualitative and evidenced-based research.
 Provide civilian oversight of the police service through monitoring and evaluating overall police performance.

 Mobilise role-players, stakeholders, and partners outside the department through engagements on crime prevention and other policing matters.
Based on the Department’s mandate, it is ideally placed to assist in the realisation of Vision 2030, to create a more professional police service in SA and to foster a strong community-policing platform through Community Safety Forums (CSFs) and Community Policing Forums (CPFs).

An increased focus is placed on a holistic approach to crime fighting, seeing violent crime as a societal problem and not a ‘police pr oblem’ alone.
153 The Department relies heavily on output performance targets as opposed to outcome performance targets.

Throughout 2018/19, the Department entered into public -private partnerships, hosted several community outreach programmes and produced many reports.

These are all measurable outputs that do not measure the outcomes and the impact on crime prevention or police conduct.

The Department has filled 140 of its 150 vacant posts by the end of the year under review, resulting in a vacancy rate of 6.67%.
In terms of the status of the Employment Equity, of the total number of positions filled, persons with disabilities constituted 0,74% as there was only one person with a disability at the end of the financial year.

In terms of gender differences, 75 out of the total positions filled comprised of females, which translates into 56%, while 65 or 44% were males.

Women occupied only 13 or 43.33% of the senior management positions within the department, while males occupied 17 or 56.67%.

5.
5.

FINANCIAL OVERVIEW 2018/19 5.1.

Departmental expenditure The Secretariat received a Final Appropriation of R131.219 million in the 2018/19 financial year, of which R123.865 million was spent.

A material underspending of R7 335 million was recorded (94.4%), which is the same percentage expenditure of the previous financial year, in which 94.4% expenditure was realised.

The unspent funds will be surrendered to the revenue fund.

Table 1: Appropriation statement 2018/19 Programme R’000 1.
Administration 2.

Intersectoral Coordination and Strategic Partnerships 3.

Legislation and Policy Development 4.
Civilian Oversight, Monitoring and Evaluations Total Adjusted Appropriatio n 54 415 Virement 22 Final appropriatio n 54 437 Actual Expenditure Variance % Spent 53 072 1 365 97.5% 24 416 (71) 24 345 21 976 2 369 90.3% 21 392 - 21 392 20 386 1 006 95.3% 30 996 49 31 045 28 430 2 615 91.6% 131 219 - 131 219 123 864 7 335 94.4% Source: 2018/19 CSPS Annual Report 153 154 In terms of spending per Programme, the following can be noted –  The Intersectoral Coordination and Strategic Partnerships Programme recorded the largest underspending.
The Programme had a Final Appropriation of R24.345 million, of which R21.976 million was spent at year-end (90.3%), leaving a variance of R2.369 million, despite a virement from the Programme.

 The Civilian Oversight, Monitoring and Evaluations Programme had a Final Appropriation of R31.045 million in 2018/19, of which R28.430 million was spent at year-end (91.6%), leaving a variance of R2.615 million.

 The Legislation and Policy Development Programme spent R20.386 million of its R21.
392 million (95.3%), leaving a variance of R1.006 million at year -end.

 The Administration Programme had a Final Appropriation of R54.437 million in 2018/19, of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end.

The Virement from Programme 2: Intersectoral Coordination and Strategic Partnerships of R1.667 million was mainly from Goods and Services and was to defray overspending on payment for capital assets in the other three programmes.
Spending on Compensation of employees (COE) is concerning.

In 2018/19, the Department had a Final Appropriation for COE of R97.433 million, of which R91.446 million was spent at year-end (93.9%), leaving a variance of R5.987 million in unspent funds.

The Department is labour-intensive and had a vacancy rate of 6.67% in 2018/19, yet performance remained similar to the previous financial year.
The Department did not incur any unauthorised expenditure during 2018/19, but has a large amount of historical unauthorised expenditure awaiting authorisation (R5.6 million) due to overspending of appropriated funds in 2015/16.

The amount was restated in the current financial year.

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 Department has not incurred additional irregular expenditure in 2018/19, but the R39.305 million has not been condoned.

The bulk of the irregular expenditure originated in 2014/15 up to 2016/17 on two contacts namely Wings/Naledi Travel Management and Routledge Modise for legal fees.

A request for condonation was submitted to National Treasury in March 2019 and feedback is awaited.
155 The Department has not incurred fruitless and wasteful expenditure in the 2018/19 financial year, however the Department has historic fruitless and wasteful expenditure of R193 000, which relates to interest incurred for a delayed payment made to South African Revenue Service (SARS) due to the unavailability of computer systems.

An amount of R30 000.00 from the previous financial year for DVDs paid but not delivered is still under investigation.
The Department indicated that the unconfirmed fruitless and wasteful that originated in 2016/17 and 2017/18 is still under investigation and/or determination has not year been made although early indications do not confirm the possibility of fruitless and wasteful expenditure.

5.2.

Expenditure per programme 5.2.1.


Administration Programme The Administration Programme received an Adjusted Appropriation of R54.4 million in the 2018/19 financial year of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end.

The percentage expenditure decreased from 98.7% in 2017/18 to 97.5% in 2018/19.

5.2.2.
5.2.2.

Intersectoral Coordination and Strategic Partnerships Programme The Intersectoral Coordination and Strategic Partnerships Programme recorded the largest underspending.

The Programme had a Final Appropriation of R24.345 million, of which R21.976 million was spent at year-end (90.3%), leaving a variance of R2.369 million, despite a virement from the Programme.

The Programme only slight increased expenditure from 90.1% in 2017/18 to 90.3% in 2018/19.

5.2.3.
5.2.3.

Legislation and Policy Development Programme The Legislation and Policy Development Programme spent R20.386 million of its R21.

392 million (95.3%), leaving a variance of R1.006 million at year-end.

The Programme recorded expenditure of 95.3% in 2018/19, which is an improvement when compared to the 94.4% expenditure recorded in the 2017/18 financial year.

5.2.4.
5.2.4.

Civilian Oversight, Monitoring and Evaluation Programme 155 156 The Civilian Oversight, Monitoring and Evaluation Programme received an Adjusted Appropriation of R30.9 million and a Final appropriation of R31.045 million in 2018/19, of which R28.430 million was spent at year-end (91.6%), leaving a variance of R2.615 million.

The 91.6% expenditure recorded in the 2017/18 financial year remains the same in the 2018/19 financial year.

6.

Performance overview 2017/18 6.1.


Overall performance The overall performance of the Department declined in 2018/19 when compared to the previous financial year.

In 2018/19, the Department achieved 78.1% of the predetermined targets against an 81.2% achievement on performance indicators in the 2017/18 financial year.

Of the total 32 performance targets, the Department met its targets on 25 indicators and underperformed on seven indicators.
The decline in performance is due to a significant decline in the performance of the Administration Programme, more specifically the Financial Administration sub-programme did not achieve any of its performance targets (0% achievement rate).

6.2.
6.2.

Administration Programme The Administration Programme achieved three from eight predetermined targets during the 2018/19 financial year, which is an overall performance rate of 37.8%, which is a significant decline from the achievement rate of 77.7% in 2017/18 and 93.3% in 2016/17.

While both performance and spending declined, there is a significant disparity, as the Programme spent 95% of its budget but only met 37.8% of its targets.
There should be some alignment between performance and expenditure.

The significant decline in performance is ascribed to the fact that the Financial Administration sub-programme failed to achieve any of its performance targets.
The targets were missed by a narrow margin –  100% of payments to creditors were not made in 30 days (Actual achievement was 98%);  100% of internal audit recommendations were not 157 implemented (Actual achievement was 90%);  100% of external audit recommendations could not be implemented (actual achievement was 50%); and  95% of expenditure in relation to budget allocation was not realised (Actual achievement was 94%).
The Administration Programme had a Final Appropriation of R54.437 million in 2018/19, of which R53.072 million was spent (97.5%), leaving a variance of R1.365 million at year-end.

6.2.1.

Human resource management In 2018/19, the Department spent R91.446 million of its Final Appropriation of R124.864 million on Compensation of employees.

This represents 73.2% of the total budget, which is an increase compared to the 70.32% of the previous financial year.
At the end of March 2019, the Department had filled 140 of its 150 posts, which represents an overall vacancy rate of 6.67%.

The Partnerships Programme had a vacancy rate of 16.6% and the Legislation and Policy Development Programme had a vacancy rate of 15.6%.
Furthermore, the Department had 14 posts filled additional to the establishment In the 2018/19 financial year, the Department had an overall turnover rate of 5%, which was most pronounced in the Highly Skilled Production (Levels 6-8) salary bands with a turnover rate of 9.68%.

6.3.
6.3.

Intersectoral Coordination and Strategic Partnerships Programme The Programme achieved six of eight performance indicators, which is a 75% achievement on performance indicators - a decline when compared to the achievement rate of 86% in the previous financial year.

The Department achieved its target to sign two memoranda of Understanding (MOUs) to build safer communities.

However, the Department provides very little details on these MOUs.
One of them is with Aware!org to establish a formal partnership regarding the promotion of responsible alcohol trade and consumption in the fight against crime.

The Intersectoral Coordination and Strategic Partnerships Programme recorded the largest underspending.

The Programme had a Final Appropriation of R24.345 million, of which R21.976 million was spent at year-end (90.3%), leaving a variance of R2.369 million, despite a virement from the Programme.

157 158 6.4.
157 158 6.4.

Policy Development and Legislation Programme The Policy Development and Legislation Programme achieve 100% of its predetermined performance indicators in 2018/19.

This is a significant improvement from previous years.

The Policy Development and Research sub-programme submitted two policies to the Minister for approval.

One was the policy framework on the Single Police Service (SPS) that was approved by the Minister on the 26 March 2019.
The purpose of the framework is to outline the parameters for integration, cooperation and collaboration of SAPS, Municipal Police Service (MPS), and traffic policing where relevant with the aim of improving uniformity, efficiency and effectiveness within the law enforcement value - chain.

It is unclear what the other policy framework entailed.

The sub-programme indicated that two research reports on policing were approved by the Secretary during the 2018/19 financial year.
No details on the reports were provided in the 2018/19 Annual Report of the Department.

Similarly, no details are provided for the bills and regulations submitted to the Minister during the 2018/19 financial year.

The Legislation and Policy Development Programme spent R20.386 million of its R21.

392 million (95.3%), leaving a variance of R1.006 million at year-end.

6.5.
6.5.

Civilian Oversight, Monitoring and Evaluation Programme The Civilian Oversight, Monitoring and Evaluation Programme achieved 1 1 from 11 predetermined targets, which is a performance rate of 100%.

This is an improvement from the 85% achievement rate of the previous financial year.

This is the most crucial Programme of the Department, as it directly evaluates police performance and conduct.
The Police Performance, Conduct and Compliance Monitoring sub-programme achieved 100% of its predetermined performance targets in 2018/19.
The Secretary approved the following -  A Police Station Oversight Report  A Police Station Service Delivery Trend Analysis Reports  Two Assessment Reports on Complaints Management  Two reports on SAPS implementation of IPID Recommendations  Two Compliance Reports on the implementation of the Domestic Violence Act by the SAPS  A report in the implementation of and compliance with legislation and policies  An assessment report on Litigation Management 159  Two monitoring reports on police stations’ implementation of the school safety protocol The Policy and Programme Evaluations sub-programme produced an assessment report on the functionality of CSFs and a customer satisfaction survey report in the 2018/19 financial year.
The Civilian Oversight, Monitoring and Evaluations Programme had a Final Appropriation of R31.045 million in 2018/19, of which R28.430 million was spent a t year-end (91.6%), leaving a variance of R2.615 million.
Office of the DPCI Judge sub-programme The Office of the Directorate for Priority Crime Investigations (DPCI) Judge was established according to section 17L of the South African Police Service (SAP S) Act, 1995 (Act 68 of 1995) to provide for a complaints mechanism to deal with alleged abuses of power by members of the DPCI as well as alleged interferences with the work of DPCI members.
As such, the Office of the DPCI Judge provides an important over sight mechanism for the conduct of the DPCI as well as the independence of the Directorate.

The Office of the DPCI Judge is funded through monies appropriated by Parliament in the budget of the Department.

In 2018/19, the sub-programme had a Final Appropriation of R5.139 million in 2018/19, of which R4.032 million was spent thus leaving a variance of R1.107 million.
Although it forms a sub-programme of the Department, it reports separately to Parliament and submits an Annual Report.

7.

COMMITTEE OBSERVATIONS The Committee made the following observations: AGSA audit opinion: The Committee congratulated the Department for its achievement of a clean audit.

The Committee noted that there were some challenges with respect to performance, but was generally satisfied with the unqualified audit with material findings.
The Committee encouraged the Department to build on the findings and maintain it.

Budget: The Committee noted the material underspending of the budget by R1.365 million on Programme 1, R2.369 million on Programme 2 and R2.615 million on Programme 4.

At the end of the 2018/19 financial year.

recorded at the end of the 2017/18 159 160 financial year.

The department spent R123.864 million or 94.4% of its allocated budget of R131.219 million.
The department underspent its budget by R7.355 million or 5.6% which is 0.5% less compared to the previous year as the underspending was 5.1%.

The underspending was mainly due to vacant funded posts.

Irregular expenditure: The Committee noted that the Department did not incur irregular expenditure during the 2018/19 financial year, but was carrying a historic amount of R39.3 million that was incurred in the 2014/15 up to 2016/17 financial years.
The two contracts were for Wings/Naledi Travel Management and Routledge Modise for legal fees and requires condonation from the National Treasury.

A request for condonation was submitted to National Treasury in March 2019 and feedback is awaited.

Support model – DNA Board and DPCI Judge: The Committee noted that the DPCI Judge submitted its Annual Report, but the DNA Board did not submit its Annual Report for consideration by the Committee.
The Department responded by noting that both the DPCI Judge and DNA Board underspent allocated funds for the financial year.

The money is ring-fenced, but they did not make appointments and the funds were surrendered to National Treasury.

Filling of vacancies: The Committee noted that the filling of vacancies was below the 10% requirement, but that it was still high.

The Committee did not accept the question of office accommodation as an excuse as all government departments has accommodation problems.
The Department was urged to fill the outstanding vacancies.

In its response the Department invited the Committee to visit its offices to establish the seriousness of the office accommodation.

Management and Gender balance: The Committee noted that while the employment of females in the Department was at 56%, the number of women in management (13 or 43.33%) was lower than that of men (17 or 56.67%) and urged the Department to change this.
The Committee was also not happy that only 0.47% of people with disabilities have been employed.

The Department responded that from its view it was doing very well since it was established as it only had 30% representivity of women.

161 Office Accommodation: The Committee noted that the Department intended moving to a new building during the previous financial year.
The Department responded that they would have moved to the Department of Arts and Culture building, but with the change in government after the elections and the merging of departments, they were informed that the space was no longer available and have to start from scratch.

As a result of the overcrowding in the space, the morale of the staff is not good.
School Safety Protocol: The Committee was aware of the School Safety Protocol report which was compiled after the Department visited and researched 30 schools to consider safety at school.

Given the nature of school violence, the Committee wanted to know if the report was shared with the SAPS and for the Committee to receive a copy.

The Department noted that the School safety protocol was signed in 2011 by the Ministers of Police and Basic Education.
There are however challenges as not all schools have safety plans and there are a number of schools not linked to the police stations.

Community Police Forums: The Committee questioned what the policy of the CPFs were around neighbourhood watches given the emerging disputes between neighbourhood watches and CPFs.

The Department noted that they were trying to resolve it and they had a draft policy approved by MINMEC which talks about CPFs being migrated to the CSPS.
It could not happen until the SAPS Act is amended and it has to come with the funding we are busy with the assessment on the funding implications for the SAPS Act review CPF Training: The Committee questioned what training the CPFs have received as some CPFs have not been trained and this causes problems for the relationship between the SAPS and the communities they police.
The Department responded by noting that for the CPF training the department was still in the process of developing the training manual.

According to the Department, there are people who have not gone beyond grade 7 who have not been accommodated in the course manual developed by WITS University.

This is no being changed as many of the people in CPFs in poorer communities are not well educated.
The Department approached SASSETA and asked for guidance on the curriculum and they were told to do a call for proposals.

There was no response after 10 months and they then formulated a programme and pitched at a high level.

The SAPS, CSPS and WITS evaluated the training.

The SASSETA reported that it will only be paying of people for matric plus, and the Department should take responsibility for the rest.
The 161 162 Department has invited all the HODs, CPF Boards and Provincial Secretariat on 5/6 November and they will indicate what the training content should be.

Criminal Law (Forensic Procedures) Amendment Bill: The Committee noted that the Minister must ensure that the Criminal Law Forensic Procedures Amendment Bill must be tabled in Parliament for processing as a matter of urgency.
Single Police Service: The Committee questioned the Department on the responses of the Metro Police Chiefs to the Single Police Service policy and wanted to know if there were any objections and what the progress in the implementation of the policy was.

Irregular expenditure investigation: The Committee noted that an investigation in the irregular expenditure was undertaken into the companies Wings-Naledi Travel and Routledge Modise attorneys.
The Committee wanted to know what the progress of the investigation was and whether criminality has been established.

The Department noted that they have applied to National Treasury to authorise the expenditure and also condonation by Parliament.

The investigation started after the person had already left and the Wings-Naledi matter was reported to the Hawks and there is a criminal investigation underway.
Station oversight visits: The Committee was concerned about the fact that the Department has undertaken so few station visits and wanted the Department to make available the station reports.

The Department indicated that they develop after visiting all the police stations.

The approach is that a report for every police station, we having an agreement and will be focussing on the top thirty stations nationally and provincially.
There are oversight protocols and have guidelines together with a national monitoring tool.

8.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS 8.1.

Recommendations The Committee recommends the following: 163 1) The Department should continue its performance regarding the clean audit opinion of the AGSA and maintain it for the 2019/20 financial year.

2) The Department should fill vacancies in order to address and mitigate material underspending in the 2019/20 financial year.
3) The Department should spend its allocated budget in all programmes and fill all vacant posts on the staff establishment.

4) The Department should address the challenges regarding inadequate office space.

The Department should engage the National Treasury to reallocate the funds for office accommodation to the Department.

5) The Department should fast-track the condonation of the historical Irregular Expenditure by the National Treasury.
6) The Department should finalise the internal investigation into the Wing-Naledi contract and make the report available to the Committee.

7) The Executive Authority should table the Annual report of the DNA Board in Parliament.

8) The DPCI Judge and the DNA Board should fill all its vacancies and avoid having to send funds back to the National Treasury.

9) The Department should make the Schools Safety protocol available to the Committee and the SAPS monitor its implementation.
10) The Department should finalise the training module for Community Police Forums and implement the training together with the SAPS for all CPFs.

11) The Single Police Service Policy must be made available to the Committee and an implementation plan should be developed after the SAPS Act is amended.

12) The Department must make its report of station visits available to the Committee.

9.
9.

CONCLUSION The Civilian Secretariat for Police Services is a critical department that has a responsibility to ensure that police services comply with its service delivery obligations.

Its role in policy development and the monitoring of relevant policies cannot be over - stated.
The need for the Department to overhaul the role, function and training of community police forums is critical and the should as a matter of urgency negotiate the mandate and budget form the SAPS to prepare for its new mandate.

The Committee congratulates the Department of attaining a clean audit for the second year in a row.

Report to be considered.

163 164 7.


BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE (IPID), DATED 16 OCTOBER 2019 The Portfolio Committee on Police, having considered the financial and service delivery performance of the Independent Police Investigative Directorate (IPID) for the 201 8/19 financial year, reports as follows: 1.
INTRODUCTION The Money Bills Procedures and Related Matters Amendment Act, (Act 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.

As part of this process, Portfolio Committees must compile Budgetary Review and Recommendation Reports (BRRR) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them.
The BRRR s are also source documents for the Standing Committee on Finance when it makes recommendations to the House of Parliament on the Medium-Term Budget Policy Statement (MTBPS).

The annual review and analysis of performance (entailing both financial and non -financial performance indicators) forms part of this process.

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 is therefore to fulfil its constitutional function through the following means:  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); 165  Facilitate public participation and involvement in the legislative and other processes; and  Engage, participate and oversee international treaties and protocols.
The Committee has overseen the performance of the Department through regular oversight meetings during the 2018/19 financial year and has tracked progress during the current financial year (2019/20).

The Committee has considered quarterly expenditure reports for 2018/19.

The Committee was briefed on the Department’s annual performance for 2018/19 on 10 October 2019.

The Committee also met with the Auditor-General of South Africa (AGSA) on the audit outcomes of the Department on 09 October 2019.
Copies of the presentations are available from the committee secretary.

The Committee has already considered and reported on the respective strategic plans and budget proposals of the Directorate for 2018/19.

This report is structured as follows:  Section 1: Introduction.

This sections sets out the mandate of the Committee, the purpose of the BRRR and the process to develop this report.

 Section 2: Internal and External Audit Reports.


This section provides a summary of the 2017/18 AGSA and Audit Committee’s Reports.

 Section 3: Expenditure and Performance.

This section provides a summary of the expenditure and performance of the Directorate during the 2018/19 financial year.

 Section 4: Committee Observations.

This section provides a summary of the key observations made by the Committee during the 2018/19 Annual Report hearings.

 Section 5: Recommendations.


This section contains the recommendations of the Committee.

 Section 6: Reporting Requirements.

This section provides a summary of the reporting requirements of the Directorate together with timeframes.

 Section 7: Conclusion.

165 166 2.

INTERNAL AND EXTERNAL AUDIT REPORTS 2.1.

Report of the Auditor-General of South Africa (AGSA) for 2018/19 The IPID received an unqualified audit opinion with no material findings on performance.
The AG made material findings on compliance with legislation.

The AG raised two emphases on matters in the 2018/19 financial year, these were:  Restatement of corresponding figures: There was a change in accounting estimates for contingent liabilities.

The change resulted in the contingent liabilities balance for the current year decreasing significantly by R40 036 000 from the previous year.
 Payables not recognised: Payables not recognised of R4 303 000 exceeded the payment terms of 30 days, as required in Treasury regulation 8.2.3.

This amount, in turn, exceeded the R282 000 voted funds to be surrendered by R4 021 000 as per the statement of constituted unauthorised expenditure had the amounts been paid on time.
Performance on predetermined performance targets The AG identified material misstatements in the annual performance report submitted for auditing (Programme 2), but the misstatements were subsequently corrected.

Therefore, the AG did not make any material findings on the usefulness and reliability of the reported performance information.
Annual financial statements, performance and annual reports The financial statements submitted for auditing were not fully prepared in accordance with the prescribed financial reporting framework as required by sect ion 40(1)(b) of the PFMA.

Material misstatements of expenditure and disclosure items identified by the auditors in the submitted financial statement were corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified opinion.
Material findings on compliance with legislation Annual financial statements The financial statements submitted for auditing were not prepared in accordance with prescribed financial reporting framework and/or supported by full and proper records.

Material misstatements on commitments identified by auditors in the submitted 167 financial statements were corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualif ied opinion.
Expenditure Management Effective and appropriate steps were not taken to prevent irregular expenditure amounting to R1 824 000 disclosed in note 23 to the annual financial statements.

The majority of the irregular expenditure was caused by the appointment of officials without following the Department of Public Service and Administration regulations.
Internal control deficiencies Management did not implement adequate controls over the preparation and review of the annual performance report to ensure that all reported performance indicators/ measures are free from material misstatements.

Additionally, management did not implement adequate controls to review and monitor compliance with laws and regulations, which resulted in irregular expenditure.

2.2.

Report of the Audit Committee The IPID Audit Committee consisted of the following members:  Mr. M.I.
Motala (Chairperson) (External)  Ms. A. Badimo (External)  Ms. L. Mvuyana (External)  Mr. NS Nkonzo (External)  Mr. RJ McBride (Executive Director, Ex- Officio, until 28/02/2019) (Employment contract ended)  Mr. VO Senna (Chief Financial Officer, Ex Officio)  (Acting Executive Director from 01 March 2019) 00  Mr. PM Setshedi (Acting Chief Financial Officer from 01 March 2019 00 (Ex- Officio) The Audit Committee recorded the following findings: The IPID Audit Committee conducted Provincial Audit Reviews in the following provinces: • Mpumalanga - Investigation Management • Free State - Investigation Management 167 168 • KwaZulu Natal – Investigation Management • North West - Investigation Management • Limpopo - Investigation Management Based on the approved 2018/2019 annual internal audit plan setting out the scope, control objectives and risks, for the period covered, various reports were submitted by the internal auditors.
The management report of the Auditor General (SA) on the annual financial statements was also submitted to and discussed by the Committee.

 Internal Audit did not manage to fully implement the IA Plan for the year under review, with one (01) planned project namely Review of 3rd Quarter Financial Statements not done.

The assurance risk was however mitigated through the AGSA’s high level review of those statements.

Issues were identified and corrected.


 The Committee considered management’s responses to address the matters raised by Internal Audit and Auditor General (SA) and to facilitate corrective actions, improvements and monitoring the controls and procedures.

The Committee, however, noted that not all the findings and recommendations of Internal Audit were implemented.

 The Committee also noted that the audit action plan was not fully implemented.
The Committee recommended that additional effort should be made to implement the recommendations which contribute significantly to an improved audit outcome.

 The Audit Committee noted progress in the sourcing of an ICT audit assurance provider, who had been appointed in March 2019, to commence work in the new financial year.
It would assist in addressing the concern of the Committee that no assurance could be provided with respect to the ICT environment because the internal audit function lacked capacity in this regard.

The Audit Committee was supplied with all quarterly financial reports prepared and issued by the Department during the year under review in compliance with the statutory reporting framework.
With the exception of certain nominal deficiencies, the Committee was satisfied with the quality of these reports, even-though were not timeous.
The IPID Audit Committee noted that: 169  The Department has drafted its Risk Management Strategy, Fraud Prevention, and Compliance Implementation Plans for approval in an effort to strengthen its future identification and mitigation of risks and particularly improve its compliance with Treasury Regulation 3.2.1;  No fraud allegations were reported as at end of 2018/19 financial year; and  The MISS requirement for safe storage of classified documents could not be adhered to due to prevalent Departmental budgetary constraints which impeded the sourcing of sufficient storage.
3.

FINANCIAL EXPENDITURE AND PERFORMANCE 3.1.

Overall expenditure and performance In the Annual Report’s foreword by the Minister of Police, he stated that to achieve the National Development Plan (NDP) vision 2030 relating to the professionalization of the SAPS and strengthening accountability, IPID should be supported and appropriately funded.

Continuous efforts have been made to increase the budget allocation of the Department.
At 0.35% of the budget of the SAPS, and a fraction of the personnel, the capacity (in terms of budget and personnel) of the Department should be increased to effectively oversee and investigate police conduct.

Overall, the performance of the Department improved during the 2018/19 financial year.

The Department achieved 82.8% on predetermined targets compared to 64.7% in the previous financial year.
The improvement was most noticeable in the Administration Programme and the Investigation and Information Management Programme.

The performance of the Administration Programme increased from 80% in 2017/19 to 85.7% in 2018/19.

The performance of the Investigation and Information Management Programme improved from 59% in 2017/18 to 76.1%.

The performance of the Compliance and Stakeholder Management Programme remained at 100% in 2017/18 and 2018/19.
The Department had a Final Appropriation of R315.113 million in 2018/19, of which R314.831 million was spent at year-end.

The Department underspent with R141 000 in the Administration Programme, thus at the end of the 2018/19 financial year, the Department had spent 99.9% of its budget.

169 170 Table 1: Appropriation statement IPID Programmes R’000 1.

Administration 2.

Investigation and Information Management 3.
Compliance Monitoring and Stakeholder Management Total Adjusted Appropriatio n 106 504 Virement (273) Final Appropriatio n 106 231 Actual Spent Variance % Spent 106 000 141 99.9% 192 215 - 196 215 196 215 - 100.9% 12 394 273 12 667 12 526 141 98.9% 315 113 - 315 113 314 831 Source: IPID 2018/19 Annual Report 99.9% 282 In terms of economic classification, the following should be noted –  Goods and services had an Adjusted Appropriation of R109.374 million, of which R14.768 million was shifted away from the item and a further R273 000 was moved through a virement.
This left Goods and services with a Final Appropriation of R94.333 million, of which R102.134 was spent at year-end, thus resulting in an overspending of R7.8 million (108% expenditure of the allocation).

 Operating leases had an Adjusted Appropriation of R29.3 million, of which R5.025 million was shifted from the item, leaving a Final Appropriation of R24.345 million, of which R30.747 million was spent, thus realising an overspending of R6.402 million at year-end (126% expenditure against allocation).
 Travel and subsistence had an Adjusted Appropriation of R16.406 million, of which R3.715 million was shifted from the item, which left a Final Appropriation of R12.691 million, of which R14.159 million was spent, resulting in an over expenditure of R1.468 million (111.6% expenditure against the allocation).

Machinery and equipment had an Adjusted Appropriation of R7.535 million, of which R13.908 million was added to the item (through shifts) and led to a Final appropriation of R21.493 million.
At year-end, expenditure was higher that the allocation overspent with R1.711 million (108% of the allocation).

Ideally, the percentage of targets achieved should be in-line with the percentage of departmental expenditure.

The table below shows that there is a misalignment between achievement of targets and expenditure of the Department.
The table shows that between 171 2013/14 and 2015/16, there was a large misalignment with the Department achieving less than 50% of performance targets, while spending close to the full budget allocation.

The alignment improved in 2015/16, but then regressed again between 2016/17 and 201 7/18.

The 2018/19 financial year shows a closer alignment between expenditure and achievement.

It is the closest alignment since the establishment of the IPID.
Table 2: IPID Expenditure and performance between 2014 and 2019 Financial year 2013/14 2014/15 2015/16 2016/17 2017/18 2918/19 Source: IPID 2018/19 Annual % Targets achieved 27% 42.2% 74.5% 35.1% 64.7% 82.8% % Budget Spent 89% 99% 99.7% 99.8% 99.8% 99.9% Report Irregular expenditure The Department has registered irregular expenditure amounting to R1, 824, 000 in the 2018/19 financial year, which is made up as follows: 1) Irregular appointment of Fidelity Security without following proper Supply Chain Management Processes - R615 000 (Amount can only be condoned by the National Treasury after IPID has implemented consequence management against af fected officials) 2) Irregular Appointment of Ms Theresa Botha – R1, 143, 000 (This amount is increasing monthly for as long as Ms Botha is employed by the IPID until such time that the appointment is either set aside or regularised by the Labour Court) The closing balance for irregular expenditure was R30.026 million at the end of 2018/19.
Unauthorised expenditure The Department did not incur any unauthorised expenditure in the 2018/19 financial year.

The reported amount in the 2018/19 financial statements consists of prior over- expenditure by the then Independent Complaints Directorate (ICD) in Programme 3 and 2 for the financial year 2005/06 and 2008/09 respectively.

The Department made a submission with the supporting documents requesting the authorisation of the disclosed amount since been submitted to SCOPA through National Treasury.
171 172 Fruitless and wasteful expenditure The Department has historic fruitless and wasteful expenditure of R2.236 million.

In 2018/19, fruitless and wasteful expenditure of R8 000 was recorded, of which R7 000 was resolved.

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.

Programme Performance 3.2.

Administration Programme The Administration Programme achieved six from seven performance indicator targets, which represents 85.7% of targets achieved, which is an improvement on the previous year in which 80% of targets were achieved.

The performance indicator that was not achieved was to maintain a vacancy rate less than 10%, as the Department had a vacancy rate of 13.49% at year-end.
The Administration Programme had an adjusted Appropriation of R106.

504 million in 2018/19.

An in-year virement of R273 000 from the Corporate Service sub-programme brought the Final Appropriation to R106.231 million, of which R106.090 million was spent at year-end, leaving R141 000 unspent.

Funds totalling R6.4 million were shifted from the Departmental Management, Internal Audit and Finance Services sub-programmes to the Corporate Services sub-programme.
Table 3: Financial performance of the Administration Programme 2018/19 Administrat ion subprogram mes R’000 Departmenta l Management Adjusted Appropriati on Shifts Virement Final Appropriati on Actual Spent Variance % Spent 18 261 (3 523) - 14 738 14 644 94 99.4% - - 6 408 ((273) 12 450 48 150 54 280 54 280 Corporate Services Office Accommodat ion Internal Audit Finance Services Total Source: IPID 2018/19 Annual Report 106 231 106 090 106 504 (2 429) 12 450 20 407 12 450 20 407 22 864 4 309 4 309 4 779 (456) (273) 141 28 13 5 - - - - 100% 99.7% 99.9% 173 100% 100% 3.2.1.
Human Resource Management The Department had an approved establishment of 415 posts, of which 359 posts were filled at the end of March 2019.

This means that the Department had 56 vacancies and a vacancy rate of 13.4%.

The vacancy rate is above the 10% vacancy rate recommended by government.
The highest number of vacancies was in the Compliance Monitoring and Stakeholder Management sub-programme (31.8%), followed by the Administration Programme (16.8%) and the Investigation and Information Management Programme (10.4%).

There are 185 males and 174 females’ employees at all levels.

In the Senior Management Structure (SMS), there were 11 vacancies, which was most pronounced in the salary level 13 (10 vacancies).
At year-end, 77.5% of SMS posts were filled During 2018/19, the Department awarded 90 performance rewards to the total value of R1.7 million.

Of the 90 recipients, 21 were in skilled salary band, 35 in the highly skilled production band and 32 in the highly skilled salary band.

The Department had four disciplinary hearings during the 2018/19 financial year, of which two led to a dismissal.

The cases related to dishonesty, contravention of policy, negligence and leaking of information.
During the 2018/19 financial year, 13 grievances were lodged, of which nine were resolved and four were not resolved.

During 2018/19, the Department appointed three consultants to a total contract value of R613 482.66.
In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source: 173 174 a) The rendering of expert advice; b) The drafting of proposals for the execution of specific tasks; and c) The execution of a specific task, which is of a technical or intellectual nature but excludes an employee of a department.
Table 4: Consultants appointed using appropriated funds Project title Alexander Forbes ICAS Wellness Fidelity – Cell Phone Analysis Service Number of consultants that worked in the project 1 1 1 Duration Contract value On-going On-going Six months R53 720.30 R217 762.36 R342 000.00 3.3.
Programme 2: Investigation and Information Management The Programme achieved 16 from 21 performance targets in the 2018/19 financial year, which represents an achievement rate of 76.1%, which is an improvement from the 58.8% achievement rate of the previous financial year.

The achievement is further significant as the Department achieved only 17.6% of identified targets in the 2016/17 financial year.
In terms of Section 28(1) of the IPID Act, Act 1 of 2011, the IPID is obligated to investigate the following matters: 1) Any deaths in police custody; 2) Deaths as a result of police actions; 3) Any complaint relating to the discharge of an official firearm by any police officer; 4) Rape by a police officer, whether the police officer is on or off duty; 5) Rape of any person while that person is in police custody; 6) Any complaint of torture or assault3 against a police officer in the execution of his or her duties; 7) Corruption matters within the police initiated by the Executive Director on his or her own, or after the receipt of a complaint from a member of the public, or referred to the Directorate by the Minister, an MEC or the Secretary, as the case may be; and 8) Any other matter referred to it as a result of a decision by the Executive Director, or if so requested by the Minister, an MEC or the Secretary as the case may be, in the prescribed manner.
175 In terms of Section 28(2) of the IPID Act 1 of 2011, the IPID may investigate matters relating to systemic corruption involving the police.

In addition, section 29 of the Act places an obligation on members of the South African Police Service (SAPS) and Municipal Police Service (MPS), to report all matters referred to in Section 28(1) (a) to (f) to the IPID immediately upon becoming aware of such a matter.

These must be reported in writing within 24 hours.


During 2018/19, 5 829 cases were reported to the IPID, which is a 3% increase compared to the previous financial year.

The majority of the cases reported were within Section 28(1) (a) to (h).

Of these, 3 835 were assault cases, 770 were cases of complaints of discharge of an official firearm, 393 were cases of deaths as a result of police action followed by 214 cases of deaths in police custody.
Of the total 5 829 cases, 5 691 cases involved the SAPS members and 126 cases involving the MPS on various criminal offences.

The remaining 13 cases involved the civilians.

During 2018/19, 2 044 criminal cases were referred to the NPA, of which 55 cases were prosecuted.

During 2018/19, the Department referred 2 337 recommendations to the SAPS, of which 1 464 recommended no disciplinary action (positive recommendations) and 873 were negative recommendations in which disciplinary action was recommended.
As the offences listed above must be investigated by the Department, performance indicators and targets have been developed to measure performance on this statutory obligation.

The table below provides achievement of selected targets in comparison to the actual achievement thereof.

However, there is a major problem with the reported achievement on predetermined targets for 2018/19.
The targets are set as absolute numbers and not percentages of the case intake, which does not provide an accurate assessment of the IPID’s performance.

In addition, IPID does not identify whether the number of cases achieved related to cases reported in the 20018/19 financial year (or including backlogs cases).

For instance, the Department ‘exceeded’ the target for the number of rapes in police custody cases that are decision ready.
In 2018/19, 12 cases from a target of 10 cases were finalised, which is two more that targeted.

Yet, 13 case of rape in police custody was reported in 2018/19.4 This clearly shows that backlog cases are included in reporting on targets and not only an assessment of the financial year under review.

175 176 Additionally, the target to finalise 80 cases of other criminal matters and misconduct was not achieved, as only 57 cases were decision-ready.

However, 35 cases were reported in 2018/19.


Ideally, the Department should report achievements on targets for the year under review against the case intake within that period and report separately on closing of backlog cases in the same category of offences.

The table below shows performance on the mandatory cases for investigation that are decision-ready (finalised) against predetermined cases, but also the number of case intake for the 2018/19 financial year.
Table 5: Performance on selected performance indicators Section of IPID Act Investigated 2018/19 Target 2018/19 Achieved % deviation 28(1)(a) 28(1)(b) 28(1)(c) 28(1)(d) 28(1)(e) 28(1)(f) 28(1)(f) 28(1)(g) 28(1)(h) 150 154 4 130 175 27 500 337 -163 65 100 35 10 60 12 81 2 21 2000 1 794 -206 60 80 60 57 - -23 Number of deaths in police custody cases that are decision- ready Number of deaths as a result of police action cases that are decision- ready Number of complaint of the discharge of official firearms(s) cases that are decision- ready Number of rape by police officer (on or off duty) cases that are decision-ready Number of rape in police custody cases that are decision-ready Number of torture cases that are decision- ready Number of assault cases that are decision- ready Number of corruption cases that are decision- ready Number of other criminal matter(s) and misconduct cases 2018/19 Comments on reported achievements Target exceeded 2018/19 case intake: 214 Target exceeded 2018/19 case intake: 393 Target not achieved.
2018/19 case intake: 770 Target exceeded 2018/19 case intake: 124 Target exceeded 2018/19 case intake: 13 Target exceeded 2018/19 case intake: 270 Target not achieved 2018/19 case intake: 3 835 Target achieved 2018/19 case intake: 108 Target not achieved 2018/19 case intake: 35 28(2) that are decision- ready Number of systemic corruption cases that are decision- ready 2 4 2 177 Target exceeded 2018/19 case intake: 1 Source: IPID 2018/19 Annual Report The Investigation and Information Management programme received an Adjusted Appropriation of R196.2 million in 2018/19.
No virements were made, which maintained the Final Appropriation at R196.2 million, of which 100% was spent at year -end.

Funds were shifted from the Information Management sub-programme to the Investigation Management and Investigation Services sub-programmes.

These shifts increased the budget of the Investigation Management sub-programme from R18.06 million to R18.4 million and the Investigation Services from R173.5 million to R174.4 million.
The Information Management sub-programme’s budget decreased with R1.3 million to a Final Appropriation of R3.2 million.
Table 6: Investigation and Information Management Programme Shifts Virement Sub- programmes R’000 Investigation Management Investigation Services Information Management Total Adjusted Appropri ation 18 066 406 173 504 980 4 645 (1 386) 196 215 - - - - - Final Appropria tion 18 472 Actual Spent 18 472 174 484 174 484 3 259 3 259 Variance % Spent - - - 100% 100% 100% 196 215 Source: IPID 2018/19 Annual Report 196 215 - 100% In terms of economic classification within the Investigation and Information Programme, the following should be noted:  Contractors: An in-programme shift was made from this item, leaving R49 000.00 as the Final Appropriation.
At year-end, R152 000.00 was spent, thus overspending by R103 000.00 (310.2%)  Consultants: The Department spent 155.6% of the Final Appropriation of the item.

3.4.

Programme 3: Compliance Monitoring and Stakeholder Management 177 178 The Programme achieved a second consecutive achievement rate of 100% on performance targets.
In 2018/19, the Programme achieved seven from seven performance target s. Furthermore, all the predetermined performance indicator targets were exceeded by a wide margin during the 2018/19 financial year (same as previous financial year).
1) 26 more community outreach events were held (106) 2) 10 more formal engagements with key stakeholders were held (138) 3) 1 366 more disciplinary recommendations were referred to the SAPS and MPS (2 366) 4) 1 020 more criminal referrals were forwarded to the NPA (1 950) 5) 13% more responses from the SAPS and MPS were analysed (target was 50% and 63% was achieved 386 of 608) 6) 9% more responses from the NPA were analysed (target was 50% and 59% were achieved at 326 of 554) The Compliance Monitoring and Stakeholder Management Programme had an Adjusted Appropriation of R12.3 million in 2018/19, which increased the Final Appropriation slightly with R273 000 to R12.6 million at year-end.
The Programme recorded an underspending of R141 000, which means that 98.9% of the budget was spent at the end of the 2018/19 financial year.
Table 7: Compliance Monitoring and Stakeholder Management Programme Sub- programmes R’000 Compliance Monitoring Stakeholder Management Total Adjusted Appropri ation 7 366 Shifts Virement (1 406) - Final Appropria tion 5 960 Actual Spent Variance % Spent 5 819 141 97.6% 5 028 1 406 12 394 - 273 273 6 707 6 707 - 100% 12 667 Source: IPID 2018/19 Annual Report 12 526 141 98.9% 4.
PORTFOLIO COMMITTEE OBSERVATIONS 179 The Committee made the following observations: Manipulation of IPID Statistics: The Committee noted the various media reports around the manipulation of statistics and asked the Acting Executive Director to explain.

The IPID noted that they have started a disciplinary process to deal with the accusations of premature closure of cases and performance statistics.

The allegations started in 2012 and a complaint was first registered in 2012.
The Public Protector found that there was no merit in the allegations.

It came back in 2014 and in 2016, the same complaints were made by the Ethics Officer.

The Gauteng Office was involved and two officials were involved.

One resigned and the other faced a case of defeating the ends of justice.

The then ED then extended the investigation to all provinces.

A report has been drafted and will be released to the Minister and the Committee on 18 October 2019.
The Committee noted that it will not allow for the manipulation of the IPID statistics and looked forward to the report being issued.

The Chairperson of the Committee noted that the Committee would be averse to making any judgement and wait for the report.

A reputation risk and confidence deficit has developed together with a trust deficit that should be restored.
The Committee views the reports in a serious light and IPID must create the opportunity for the public to restore its confidence in the Department.

AGSA Audit Opinion: The Committee welcomed the maintenance of the AGSA Audit Opinion of an unqualified audit with material findings.

The IPID reported that there were 51 findings in the Audit outcome to which they have already developed an action plan for implementation.
Irregular Expenditure: The Committee noted that the IPID must investigate the Irregular Expenditure to the tune of R1.824 million which was incurred in 2017 and only audited in 2019.

It involved the irregular appointment of Fidelity Security (R615 000) and the appointment a cell-phone analyst (R1.143 million).

The Committee supported IPID to implement consequence management and recovery of the amounts.

The IPID has indicated that it has finalised an internal disciplinary case.
179 180 Ministry of Police support: The Committee noted that the Ministry of Police has pledged to support the IPID in attainment of their Audit outcome planning.

The Deputy Minister of Police assured the Committee that IPID is doing good work and that they require support.

Under-funded Mandate: The Committee noted that the IPID is seriously under-funded in order to execute its mandate and implement Section 23 of the IPID Act.
The Committee noted that the Minister should make sure that the IPID is sufficiently funded so that all vacancies of its establishment is filled.

Given the work of IPID to investigate corruption, the mandate of the IPID must be taken seriously and it should not intentionally be under - funded.

Permanent Executive Director of IPID: The Committee raised serious questions as to when the Committee can expect the nomination of the candidate for the position of the Executive Director of IPID.
The post was advertised and the shortlisting process ha s started.

Low conviction rates: The Committee noted that it was concerned about the low conviction rates and wanted to know why the National Prosecution Authority (NPA) always declines to prosecute cases referred by the IPID.

The quality of the IPID investigations should be beyond reproach.

The IPID responded by saying that there is a huge backlog of cases at the NPA in that it referred a total of 2044 cases to the NPA and secured 91 convictions.
There were 2073 recommendations to the SAPS of which 1464 were “positive” recommendations and 873 were “negative”.

The IPID was engaging with the NPA on the case backlogs.

Performance Targets: The Committee expressed concerns that despite the lack of budget and under-resourcing of the Department, the IPID has achieved a remarkable improvement with respect to reaching their targets.

Members were surprised with the remarkable improvement in performance.
The IPID responded by indicating that the staff morale was quite low as five satellite offices were closed; workloads for staff had increased considerably and the ratio of the IPID investigator to police was 1:1130.

While there was stability in the senior management service, at lower level of the department, there was a high turnover.

Despite this, the department has improved from 65% to 83% on its set performance targets.
181 Irregular appointment of staff member: The Committee expressed its concern on whether the appointment of the telephone call analyst was done in line with Department of Public Service and Administration (DPSA) guidelines.

The Committee called for corrective action.

The IPID indicated that it approached the Labour Court for a decision.
Investigation of rape by police officers: The Committee noted that it was concerned about the investigations of rape by police officers and whether the perpetrators were successfully prosecuted.

It was concerned about the quality of such investigations as such police officers understood the investigation procedures and could sabotage it.
The Department indicated that once an investigation is completed, the criminal case is referred to the NPA, while the departmental misconduct case is referred to the SAPS.

The IPID indicated that it was unlikely that other police officers will report their colleagues and cases are declined because the victims are in contact with the police.

Cases where the victim /survivor cannot identify the police officer are not referred to the NPA.
Backlog of cases: The Committee notes the high backlog of cases at the NPA and calls on the NPA to speed up the process of reducing the case backlog.

The IPIDs own investigators should clear up the backlog in the process.

Implementation of Section 23 of the IPID Act: The Committed questioned whether the IPID was implementing Section 23 of the IPID Act.

The Department indicated that the last Court Order on the implementation of section 23 was on 20 August 2019.
The Department was given a certain period for the implementation of section 23 and every implementation of a section 23 instruction an explanation has to be provided.

The labour unions have been approached to form part of the task team as the IPID was given three months to implement Section 23.

5.
5.

RECOMMENDATIONS BY THE PORTFOLIO COMMITTEE ON POLICE The Portfolio Committee on Police recommends the following: 1) The Audit Action Plan must be strengthened and implemented as a matter of priority in order to ensure that the Department improve on its audit outcomes in the 2019/20 financial year.

It is recommended that the Department provide 181 182 quarterly reports to the Committee on the implementation all 51 findings of the Auditor General in the Audit Action Plan.
2) The Directorate must make the report of its investigation into the manipulation of the IPID crime statistics, available to the Committee at the end of October 2019.

3) The Directorate must review its annual performance indicators and targets to ensure they reflect performance and encourage service delivery.

4) The Directorate must implement consequence management against officials who make or permit irregular or fruitless and wasteful expenditure.
5) The Committee welcomes the support of pledged by the Ministry of Police to ensure IPIDs succeeds with the implementation of the Audit Action Plan.

6) The Directorate must finalise the shortlisting of the candidates for the appointment of a permanent Executive Director for the IPID.

7) The Department address the low conviction rates of IPID cases and meet with the NPA to consider strategies to increase the conviction rates.
8) The Department should review its performance targets and should aim to improve on its performance of 83% for the 2019/20 financial year.

9) The Department should hold officials responsible for irregular, wasteful and fruitless expenditure to account by recovering funds.

10) The Department should address the backlog of cases together with the NPA and develop strategies for speeding up the trials of accused.
11) The Department should develop strategies for dealing with investigations that centre on rape by a police officer with a view to building water-tight cases against such officers.

12) The Department should fast-track the implementation of Section 23 of the IPID Act and make sure that trade unions support the implementation as a matter of urgency.

6.
6.

REPORTING REQUIREMENTS The Department should submit quarterly reports on the implementation of the Audit Action Plan to address the adverse findings of the AGSA.

7.

CONCLUSION 183 The IPID as an independent police oversight body requires stability in its leadership and investigations.

It is a critical part of the quality assurance that is needed to ensure public trust in police officials and if it is to succeed, requires the support of all partners given the huge task it faces.
The Portfolio Committee is certain that it will continue to support the IOPD as an independent oversight agency of democratic policing to ensure police accountability.

Report to be considered.

8.

REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2018/19 ANNUAL REPORT OF THE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY (PSIRA), DATED 16 OCTOBER 2019.
The Portfolio Committee on Police, having considered the financial and service delivery performance of the Private Security Industry Regulatory Authority (PSIRA) for the 2018/19 financial year, reports as follows: 1.

INTRODUCTION The Authority was established in terms of Section 2 of the Private Security Industry Regulation Act, No.

56 of 2001.
56 of 2001.

Its mandate is to regulate the private security industry and to exercise effective control of security service providers in the public and national interest and the interest of the security industry itself.

The private security industry is worth between R50 and R55 billion and is one of the largest employers in South Africa.

The industry has grown significantly over the past decade and as such needs effective and efficient regulation.
In 2018/19, the performance of PSIRA increased in all aspects when compared to the previous financial year.

The Authority – 183 184  received its first clean audit opinion from the Auditor General since the Authority’s establishment 18 years ago;   improved achievement on predetermined performance targets from 83% to 86%; improved its financial sustainability from a year end deficit of R12.4 million in 2017/18 to a year-end surplus of R3.2 million in 2018/19.
As part of its oversight function, the Committee considers the Annual Report of the Authority on an annual basis and believes that the engagements with the Authority have been robust throughout the 2018/19 financial year.

Hearings were held with the Authority on 11 October 2019 during which the Authority presented on its performance for 2018/19, in terms of both service delivery targets, as well as financial statements.
The Committee has also engaged with the Auditor-General of South Africa (AGSA) on the audit outcomes of the Authority on 08 October 2019.

This report is structured as follows: Section 1: Introduction.

The section provides an overview of the establishment of the Authority and the Committee’s oversight mandate.

Section 2: Overview of the Private Security Industry 2018/19 Section 3: Key Achievement and Challenges.

Section 4: Governance.


The section provides a summary of the establishment and mandate of the PSIRA Council as the Accounting Authority of the Authority.

Section 5: The section provides a summary of the AGSA Report for 2018/19.

Section 6: Financial overview 2018/19.

The section provides an overview of the financial performance of the Authority.

Section 7: Performance against predetermined targets for 2018/19.
The section provides an analysis of the Authority’s performance against predetermined performance indicators and targets.

Section 8: Human Resources.

The section provides for an organisational development initiative.

Section 9: Committee observations and reporting requirements.

The section provides the key observations made by the Committee during engagements on the 2018/19 Annual Report of the Authority.

Section 10: Committee recommendations.


The section provides the recommendation made by the Committee.

Section 11: Conclusion.

The section provides closing remarks by the Committee.

185 2.

OVERVIEW OF THE PRIVATE SECURITY INDUSTRY 2018/19 The graph below shows that South Africa has 2 395 794 registered security officers and 9 539 registered security businesses.

However, the mandate of PSIRA largely extends to active officers and businesses.
In terms thereof, less than a quarter of the total number of security officers are actively registered (534 289 officers).

Of the 9 539 registered security businesses, 9 447 are registered as active.

Since 2012, active security businesses increased from 7 456 to 9 447 in 2019 (26.7%) and active security officers increased from 427 174 to 534 289 (25.1%).
The number of active security guards increased with 5% in 2018 compared to 2017, while the number of active security businesses decreased slightly with 79 businesses.

However, in 2019 the number of security businesses increased with 6% to 9 447.

Of the 9 447 active security businesses, the largest portion of businesses rendered security guard and response services: In 2019, the private security industry remained male dominated, comprising of 78% male officers and 22% female officers.
Compared to the previous year, the number of female 185 186 officers increased slightly more (2.4% increase) compared to male officers (2.1% increase) in 2019.

The largest concentration of active security officers and businesses are located in Gauteng, KwaZulu-Natal and the Western Cape.

Together the three provinces accounts for 67% of all active security guards (355 146 officers) and 69% of all active security businesses (6 550 businesses).

3.
3.

KEY ACHIEVEMENTS AND CHALLENGES Key achievements in the 2018/19 financial year include - Strategic partnerships:  PSIRA has been accepted as a member of the International Association of Security and Investigative Regulators (IASIR), which will enable PSIRA to be a major role player and advocate of private security regulation in Africa and beyond.

 PSIRA entered into a strategic partnership with DCAF, a Geneva-based Centre for Security Sector Governance.
 PSIRA strengthened its established strategic partnerships with Universities South Africa Forum (USAF) and TVET Colleges Governors’ Council in the education and training space, including on contracting of security services at Universities and TVET Colleges.

 Clean audit: PSIRA received its first unqualified audit report from the Auditor General (AG).
The AG did not identify any material misstatements and material findings on performance information  Accredited training providers: The training moratorium on the accreditation of security training providers was imposed in 2007 and lifted at the end of June 2018.

This has increased the total number of security training providers to 480 as at the end of March 2019.

The lifting of the moratorium allowed PSIRA representation on the Board of the Safety and Security Sector Training Authority (SASSETA ).
 Fourth Industrial Revolution: PSIRA became a leader in the Fourth Industrial Revolution by launching the PSIRA Online App and geo-mapping software in September 2018.

187  Firearm control: A collaborative Unit was established between the SAPS and PSIRA to investigate security businesses licenced to process firearms, which lead to an increase of inspections.
Key challenges in the 2018/19 financial year and going forward include - Private Security Industry Levies Act, 2002: In 2018/19, PSIRA engaged the National Treasury regarding its unsustainable and inequitable funding model with a view to introducing the Private Security Industry Levies Act, 2002, which was passed by Parliament and assented to by the President, but never proclaimed to come into operation.
These engagements are continuing for a review of the Act into a Money Bill in terms of section 77 of the Constitution to be re-introduced in Parliament by National Treasury as the custodian of all Money Bills.

The finalisation of this process will assist in dealing with the legacy problems created under the current annual fee-funding model inherited from the repealed Security Officers Act, 1987.
 Private Security Industry Regulation Amendment Act, 2012: The Amendment Act was passed into law by Parliament on 05 March 2014 and submitted to the President for assent.

The Act has not yet come into operation and will greatly improve the regulatory power of PSIRA.

 Funding model: The introduction and operationalisation of the Private Security Industry Levies Act, 2002 will address the liquidity concerns of PSIRA to continue as a going concern.
 Transformation: The Chairperson of the PSIRA Council stated that transformation is not only about redress, but also about creating opportunities for all in the industry through equal and fair economic participation.

The introduction of the Transformation Charter and the Guarantee Fund will address this challenge.
As part of its oversight function, the Committee considers the Annual Report of the Authority on an annual basis and believes that the engagements with the Authority have been robust throughout the 2018/19 financial year.

Hearings were held with the Authority on 11 October 2019 during which the Authority presented on its performance for 2018/19, in terms of both service delivery targets, as well as financial statements.
The Committee has also engaged with the Auditor-General of South Africa (AGSA) on the audit outcomes of the Authority on 08 October 2019.

187 188 4.

GOVERNANCE The Authority is governed and controlled by the PSIRA Council, which is appointed in terms of Section 6 of the Private Security Industry Regulatory Act 56 of 2001 by the Minister of Police in consultation with Cabinet.

The Council forms the Accounting Authority of PSIRA and it is accountable to Parliament.
PSIRA acts through the Council and all act of the Council are regarded as act of the Authority.
According to section 51 of the PFMA, 1999, the Accounting Authority for a public entity must ensure that the public entity has and maintains the following (amongst others):  Effective, efficient and transparent systems of financial risk management and internal control;  A system of internal audit under the control and direction of an audit committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77; and  An appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost-effective.
 The composition of the Council must include a Chairperson, a Vice Chairperson and three additional Councillors.

The current PSIRA Council constitutes the following members: The composition of the Council must include a Chairperson, a Vice Chairperson and three additional Councillors.

The current PSIRA Council constitutes the following members: • • • • Mr N Ngubane (Acting Chairperson) Mr T Oliphant; Maj Gen C Philison; and Mr Z Zulu.
The Councillor’s three year-term started in January 2017 and will expire at the end of December 2019.

The Council is currently not fully constituted, as it is one member short.

The Minister of Police appointed the current Acting Chairperson on 20 April 2018 when the Chairperson’s term expired.

5.
5.

Report of the Auditor General of South Africa (AGSA) PSIRA received a clean audit in 2018/19, meaning that the financial statements were 189 free of material misstatements and there are no material findings on reporting on performance objectives or non-compliance with legislation.

The AG identified two matters of emphasis that the Authority should address, both of which were previous identified.
These are –  Material impairment: Provision for an impairment to the amount of R38 770 242 was raised on trade debtors.

This is an improvement from the R55 768 534 provided for in 2018.

 Uncertainty relating to litigation: PSIRA is a defendant in several legal actions Estimated liability amounts to R1 050 000.

The table below show the audit outcomes for PSIRA over the past decade (2009/10 to 2018/19).
PSIRA has made significant gains to clear previous material findings, especially in terms of its financial sustainability.
Table 1: Audit Outcomes for PSIRA Financial year Audit outcome 2009/10 2010/11 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Qualified Unqualified with material findings Qualified Unqualified with material findings Unqualified with material findings Unqualified with material findings Unqualified with material findings Unqualified with material uncertainty relating to the entity’s ability to continue as a going concern.

2018/19 Unqualified with no material misstatements and findings (Clean audit).

6.
6.

FINANCIAL OVERVIEW 2018/19 Statement of financial performance 189 190 PSIRA’s financial sustainability improved in 2018/19 compared to the previous financial year.

At year-end, PSIRA closed with a slight surplus of R3 million against the R12.4 million deficit in the previous financial year.

The financial turnaround strategy allowed an improvement in going concern issues and allowed the Authority to increase its revenue by 19% while the expenditure increased by 12%.
During the year under review, the Authority collected R268 168 075 in revenue, which is a 19% increase compared to the R240.9 million revenue of the previous financial year.

The overall increase in revenue was mainly due to a significant increase of 103.2% from non-exchange transactions (2019: R38 036 183; 2018: R18 709 6564).

The main driver of this increase was revenue collected from Fines and Penalties, which increased from R14 887 573 in 2017/18 to R32 415 689 in 2018/19 (117.7% increase).
This is indicative of successes made through the turnaround strategy.

Additionally, Bad debt recoveries increased from R394 457 in 2017/18 to R710 297 in 2018/10 (80% increase).

The surplus fund of the Authority decreased drastically from R31.1 million in 2015/16, to R6.6 in 2016/17 and a net loss of R12.4 million in 2017/18.

This has improved significantly in 2018/19 with a year-end surplus of R3.28 million.
The expenditure of PSIRA increased from R253 341 246 in 2017/18 to R262 622 608 in 2018/19 (12% increase).

Although the expenditure increases, revenue had a higher increase, which stabilised the Authority’s financial sustainability.

Cost containment was realised on decreased expenditure on Lease rentals on operating lease (16.8% decrease), Bad debt impairment (6.4% decrease) and Finance costs (86.2% decrease).
The net deficit recorded for 2017/18 pushed the Authority to implement the Private Security Industry Levies Act, 2002 to address and eliminate the going concern challenges.

It is believed that the levies funding model will bring a balanced and equitable contribution from all service providers.
The table below provides a breakdown of the Authority’s financial performance in 2018/19 compared to the previous financial year Table 2: Statement of Financial Performance Financial year Operating Revenue 2018/19 2017/18 Financial year 2018/19 2017/18 191 Sale of goods Rendering of services Annual fees Infrastructure re-assessment Course reports Registration fees Total revenue from exchange transactions Revenue from non-exchange transactions Bad debt recoveries Sundry income Interest received Fines Total revenue from non-exchange transactions Total Revenue Operating Expenditure Employee costs Other operating expenditure Bad debts Finance costs Depreciation and amortisation Total operating expenditure Operating surplus (deficit) Profit/(Loss) on disposable assets Surplus/ (Deficit) for the year (156 876 249) (95 622 043) (24 132 218) (1 813) (3 943 658) (282 622 608) (132 863 844) (88 672 292) (25 788 648) (13 187) (3 641 553) (253 176 246) 3 545 467 (258 901) (12 378 016) (95 447) 3 286 566 (12 378 463) Source: 2018/19 Annual Report The provision for debt impairment was lowered from R55.7 million in 2017/18 to R38.7 million in 2018/19.
In terms of contingent liabilities, the Authority is a defendant in a number of legal actions.

The cases are yet to be brought before the court.

It is not possible to determine the losses that PSIRA would suffer in the event that the Court found against PSIRA.

The estimated liability amounts to R1 050 000 in 2018/19.

The Authority did not incur irregular expenditure during the 2017/18 financial year.

This is the third consecutive year in which irregular expenditure was not incurred.
191 192 During the 2018/19 financial year, fruitless and wasteful expenditure decreased significantly from R216 428 in 2018 to R20 958 in 2019, which was realised through a R191 570 recovered from SARS and R21 989 previous fruitless and wasteful expenditure written off.

The fruitless and wasteful expenditure incurred in 2018/19 was because of missed flights, traffic fines, damage of rented car and late payment of creditors.

7.
7.

PEFORMANCE AGAINST PREDETERMINED TARGETS FOR 2017/18 The Authority has achieved 86% of its predetermined performance indicator targets at the end of the 2018/19 financial year (22 targets achieved from 26).

Despite the steady decline recorded between 2015 and 2018, performance improved in 2019.

A similar trend is visible in the Administration and Communication, Training and Registration Programmes.
The performance of Programme 2: Law Enforcement continued a 100% achievement rate over the past two financial years, which is especially important as it is the core service delivery programme of the Authority.
The graph below shows a visual representation of performance between 2015 and 2019.10.12 Table 3: Comparative performance between 2015/16 and 2018/19 Source: PSIRA 2018/19 Annual Report 193 7.1 Administration Programme The purpose of the programme is to 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.

 The Administration Programme achieved six out of eight performance targets, which is an achievement rate of 75%, which is similar to the previous financial year.
Areas of underperformance included –  The Guarantee Fund was not established and implemented during the 2018/19 financial year.

The concept paper will be presented to the Council in the 2019/20 financial year (reportedly in April 2019).

 The Internal Training Academy for employees was not established.

The application to accredit the Academy was provisionally declined pending the finalisation of the learning material.

A company has been recommended to develop the learning material.
Although PSIRA indicated that the application will be re - submitted in 2019/20, the performance indicator and target was removed from the 2019/20 Annual Performance Plan of PSIRA.

7.2 Law Enforcement Programme Purpose: Ensure that there are effective regulations in the security industry and enforcement of law and compliance to the regulations.
Measurable Objectives: The programme aims to ensure that Security Service Providers comply with the regulations by doing regular inspections for both security officers and security businesses and ensure that those who are not complying with the regulations are charged and prosecuted.

193 194 The Law Enforcement Programme achieved 100% of its nine predetermined performance targets at the end of the 2018/19 financial year, most of which were exceeded.
It is the second consecutive year in which 100% of the performance targets were achieved.
Specific areas of over-achievement were –  733 more security businesses were inspected, which was achieved through joint operations with other State Law Enforcement Agencies;  4 969 more security officers were inspected, which were achieved by conducting operations outside normal working hours, especially in respect of the event security sector;  4% more investigations were finalised and criminal cases opened;  148 more security businesses were licenced to possess firearms due to increased participation by the SAPS in inspections of security providers to process firearms;  42% more debt collection files were referred for litigation; and  23 more security businesses were inspected using dogs.
7.3.

Communication, Training and Registration Programme Purpose: Provide effective stakeholder engagement.

Ensure that training standards are adhered to and the registration process is done in accordance with the PSIR Act.

Measurable Objectives: Ensure effective and meaningful stakeholder communication.

Ensure that all training institutions are aligned to the required standard of training.

Ensure that the registration process is effective and authentic.
Continuous research to support core business initiatives and policy development.

The Communication, Training and Registration Programme achieved seven out of nine performance indicator targets, which is an achievement of 79%.

The performance improved compared to the 73% achievement rate of the previous financial year.
PSIRA underperformed on the following two performance indicators: 195  The target of an average turnaround time of 12 working days for registration applications for security officers missed by four days.

This was due to delays with fingerprint verifications for criminal records.

 The target to increase the number of training providers to 200 was missed by 78.

At year-end, 112 more training service providers was accredited with PSIRA.
Although 206 applications were received (which would have exceeded the target) not all applications had the necessary documentation or proof of payment.

There are currently 480 accredited training service providers registered with PSIRA.

8.

Human Resource Management During the year under review, the division has undertaken the organisational dev elopment (OD) initiative that led to the functional structure being revised to strengthen the organisation’s mission of fulfilling its set objectives.
This will ultimately revise the macro and the microstructures.

The implementation will be finalised in 2020/21.

At the end of March 2019, the PSIRA had 305 permanent staff members, of which most is attached to the Law Enforcement (168 staff), followed by Finance and Administration (98 staff) and Communication and Training (39 staff).

PSIRA further has 11 emp loyees on a fixed-term contract and 52 interns.

In 2018/19, the staff complement of PSIRA increased with 41 new staff members.
Personnel expenditure constitutes 55% (R156 876 249) of the Authority’s budget which provides for remuneration and other additional benefits which are paid to employees.

During the year under review, the Authority has reviewed the salaries of staff by 7% across the board with the exception of the Executives members.

The largest portion of personnel expenditure to total personnel cost is in the semi-skilled level (40%), followed by skilled level (31%).
As at 31 March 2018, the vacancy rate for the Authority was 1% overall, which represents three vacancies.

During the 2018/19 financial year, 10 employees resigned and three were dismissed on charges of misconduct 9.

COMMITTEE OBSERVATIONS 195 196 9.1 The Committee made the following key observations during the 2018/19 Annual Report hearing: Audit Opinion: The Committee congratulated and appreciated the Authority for obtaining a clean audit during the 2018/19 financial year.
The Members of the Committee expressed satisfaction with positive audit outcomes of the Authority.

The Members further encouraged the Authority to remain consistent in achieving clean audit outcomes.

Female Security Officers: The Committee welcomed the increase in the registration of female security officers in the industry.
The Committee further applauded the industry for improving particular in growing numbers of female employees, and also encouraged the Authority for improving gender based equality within the industry.

The Authority indicated that the number of the female security officers who are currently registered in the industry at 568 300.
Revenue: The Committee was impressed with the manner in which the Authority has presented its revenue strategy and also appreciated the fact that it was clearly state on how the Authoring will increase its revenue.

It was noticed that in the expenditure one of the key performance target was not achieved on the staff cost.

The Committee noticed that the was a planning of an academy that was supposed to be done internal ly.

The Committee highlighted the issue of turnaround strategy of 52 days.
Public Awareness campaign: The Committee noted that the number of 160 awareness campaigns was achieved.

The Authority did not specify the number of public awareness campaign which were initially targeted for.

The Authority was requested to provide the information on the number of public awareness campaigns target.

The Authority indicat ed that the target of public awareness campaign was 140, and it has exceeded the target by 160.
Social responsibility: The Committee noticed that the Authority did not mention anything about its role and responsibility in the communities.

The Committee r equested for an explanation of what role and responsibility its play in assisting to the communities.

The Authority indicated that it has recently visited one of the community areas in Tzaneen 197 in the Limpopo province, where it has donated security paroles, jackets, radios, shoes and torches.
The Authority referred to its Annual Report were it has shown the events and activities which were held for various communities.

The Authority highlighted a number of academic achievements of the security officers.

The Authority has given the security officers an award for recognising achievements.

The Authority has partnered with different stakeholders such as Passenger Rail Agency of South Africa to offer discounts on train tickets for security officers provided that they are wearing their uniforms.
The Authority also partnered with the OK grocery store for discounted food items that they purchase whenever they present their PSIRA identification cards.

The Authority will be launching a golf day event for the first time for the purpose of raising funds for the widows of the deceased security officers, where the proceeds will be donated to their families.
Compliance inspection: The Committee wanted to know whether the Authority is ensuring that companies are adhering to the minimum requirements for processes that needs to be undertaken when the business is given a permission prior its operations.

The Committee strongly believed that it was necessary for the Inspectors to conduct an inspection prior to the companies coming into operation.
The Authority indicated that it would check all the companies who are in the market, if there are registered with P SIRA.

The Law Enforcement inspectors conducts regular visitations to companies to check compliance with rules and regulations.

The Authority is also responsible for ensuring that the regulations and prescripts are properly applied by all the companies.
Stakeholders: The Committer requested the Authority to provide details of the agencies who were assisting them when they were conducting inspections.

The Authority highlighted three Departments which it utilises for various purposes, it also included the involvement and matters which each department was responsible for.
the Department of labour dealing with issues relating to exploitation of security officers, Home affairs which deals with undocumented illegal security officers and SAPS assist with firearm inspection.

Power to arrest: The Committee wanted an indication whether the Authority has powers to arrest.

The Committee requested the Authority to provide information on the types of contraventions that were committed by businesses.
The Authority indicated that there were companies and individuals who were operating without being registered by the Authority and that if the Authority discovers that there a such companies operating 197 198 without the required registration it will open a criminal case with the South African Police Service, and it also make follow- ups in ensuring that those individuals are charged.
The Authority indicated that when it was conducting an inspection the presence of the South African Police Service was required, particularly when the arrest are expected.

The Authority does not have the transportation facilitation to carry people during the arrest .

PSIRA would request the SAPS to assist them with transporting offenders who were found to be in violating its regulations.
Training: The Committee wanted to know the type of training offered to PSIRA Inspectors who are responsible for arrests.

The Committee also questioned whether those people who were effecting arrest were properly trained and adhering to the Criminal Procedure Act.

The Authority indicated that the majority of its inspectors were coming from the South African Police Service, and those who were not coming from the SAPS went through a vigorous training.
Governance: The Committee requested clarification on car guarding especially in the areas where more than one guard operates in the same area.

The Committee wanted to know whether the Authority has proper controls and systems.

The Committee wanted to know whether there is a relevant training that is particularly offered for the car guards.
The Committee also asked whether the security companies that deploys security officers at schools are screened and vetted, and whether proper training was conducted to those guards who are deployed at schools.

The Authority was requested to provide information on the standards needed to comply with the training requirements at schools.

The Authority provided reasons which led to increase in the number of foreign national who are working as car guards.
It indicated that the is lack of inspection conducted due to shortages of staff but it intends to employ more staff Breaking of windows: The Authority indicated that it has been previously experiencing challenges of arresting innocent people who were not car guards.
The Authority has decided to engage with property management companies who are responsible for deploying the car guards to assist with ensuring proper training and registration Appointment of Council Members: The Committee strongly believed that it was important for them to get an indication on the appointment of new Council.

The 199 Committee asked whether the process of filling the position of Council Member has commenced and when it will be finalised.
The Committee wanted to know the time period that Council Members serve in the Council.

The Authority indicated that the Minister of Police has approved an advert of the appointment of Council Members.

The advert will be published in the newspapers on the following week in order to allow interested people to apply for this positions.

The Authority explained that the Council Members can serve for the second term and however it should not exceed a period of nine years.
Guarantee fund: The Committee questioned whether it was realistic for the Authority to implement the Levies Act.

The Authority provided an explanation on the aspect of the guarantee fund where it has commissioned a firm of Actuaries to assist them in putting together a concept document, and a progress report is underway.

The Authority engaged with the Council Members to looked at the possible ways and methods that can be used to implement the guarantee fund.
It also made an example that it can either partner with insurance service providers in terms of establishing a guarantee fund the law makes a provision for that aspect.

Training Academy: The Committee asked the Authority whether it has its own Training Academy.

The Committee noticed that the Authority did not achieve on the establishment of training academy.

The Committee requested the Authority to elaborate on the timeframe it has given itself to finalise the entire process.
The Committee asked who is responsible for learning material.

The Authority was asked whether it was satisfied with the person who is providing training.

The Authority noted that it did not achieve the target because it was in relation to evidence which was not put in order by the team who was responsible for priorities.

According to the requirements the team should have started by presenting the material before it proceeded with the application.
The application was rejected on thosebasis of not following the correct process.

The Authority did not have sufficient time to re -present the application for this current financial year and did not achieve the target, however it plans to reapply in the next financial year.

Small Security Companies.

The Committee wanted to know the number of small security companies who are currently existing and operating.

The Committee referred to the given 199 200 current economic challenges the country is facing.
The Committee wanted to know what assistance is provided by the Authority to small companies who are still struggling to secure contracts and owing them.

The Committee asked what measures are put in place in ensuring that the revenue is collected from the small companies.

The Authority indicated that the number of the small companies that currently active are 10784.

The Authority indicated that the majority of the fines are generated from small companies which is boosting its revenue.
The Authority indicated that the law allows them to assist the small companies on a yearly basis, there is an agreement which is reached in terms of payment with small companies.

The small companies can make arrangements for their payments within a period of six months and big companies for one month.

The minimum amount that is paid by the small companies at R6000.

Reservist: The Committee wanted to establish whether the Authority and security companies has a program that caters for reservist.
The Committee took into consideration the fact that the Authority was also assisting in preventing crime activities in its environment.

The Committee strongly felt that it needed to look at the programs that will include reservist and it can be perused for the future purposes.

The Authority indicated that it does not have any data on the reservists.

If there were any of the companies who were utilising reservists, they should declare it.
Audit Opinion: The Committee noted the concern raised on the Audit outcomes about the action plan to address findings.

The Committee was of the view that the Authority would have included the measures that will be put in place to monitor the implementation and progress in terms of action plan on the audit findings.

The Authority indicated that it has included three action plan to address findings in the documentation.
The Authority indicated that it has received two emphases of matters on the material impairments and significant uncertainties.

It did not receive any finding in terms of the financial year.

It has received an administrative finding and the action plan has been developed that is being monitored by the oversight structures.

The Administrative finding has been raised in the interim finding audit report not in the final audit report.
Accreditation process: The Committee noticed that there were still challenges in the accreditation process.

The Authority was asked about the measures that are put in place in ensuring that the process is effective.

The Committee raised concerns on accreditation 201 and registration process referred to instances where the security officers will be using the accreditation that does not belong to them and how it happens in the security companies.
The Authority indicated that there are two important requirements needed to be done on the accreditation process, namely registration and training, therefore a proof has to be produced.

It referred to the most common abuses that usually happens to security officers who are supposed to attend trainings and find themselves not receiving it from the accredited service providers.

It also mentioned that there is a tendency in the industry of buying the certificates from the service providers.
The Authority has decided to take over that part of issuing certificates of the security officers.

In the future it will allow service providers to conduct training and assessment online.

The Authority is in the process of procuring an online systems and is still underway.

It would also need people who will be responsible for issuing certificate of accreditation on training instead of the service provider.

The certificates will be digitised.


The Authority will also be looking at the curriculum to ensure that there is accountability in terms of weight of the training with regard t o certain issues that are experienced on the ground by security officials.

Research The Committee requested the Authority to elaborate more on the research paper which has been finalised.

The committed asked whether the Authority has engaged with Civilian Secretariat for Police on the research it has done on School Safety.
The Authority indicated that part of the research has touched on people who are guarding children at schools.

The Authority would need a specific training for securities who are guardi ng at schools.

The Committee referred to incidents were the security officers were involved in crimes at schools for doing wrong things to children.
The Committee emphasised that the Authority should equip security officers in doing the right things, and also should ensure that the suitable people are deployed at schools with the necessary skills.

The Committee made a proposal to the Authority to submit a research document to the Minister of Police on school safety.
Community Policing Forum (CPF) The Committee indicated that during the engagements with the Civilian Secretariat for Police, the Department reported that it was 201 202 struggling to find training courses for the Community Police Forums.

There were no partners who wanted to come on board.

The Committee asked whether the Authority can be able to assist SAPS in training the CPF.

The Authority indicated that Community Policing Forums do not fall within their mandate, but that of the SAPS.
The Authority indicated that it would be looking at types of training they can provide, after agreement with the departments that will assist community patrols as well as neighbourhood watches.

The Authority was of the view that most of the CPF and NHW clashes are happening due to lack of understanding laws, particular in the Western Cape Province.

People with disabilities: The Committee requested the Authority to provide numbers and percentages on the targets.
The Committee wanted to know the number of disabled security officers that are current employed.

The Authority has a small number of disabled employees who are currently working at their offices.

The Authority indicated that there is a lot of disabled security officer who are registered.

It was unfortunate that the Authority did not have the statistics of the disabled officers.

The Authority would ensure that the data is gathered for people with disabilities in the industry.
The disabled security officers are mostly deployed in the monitoring environment.

The Committee requested the Authority to consider people who are using sign language.

The Committee indicated that there are number of people that would be found in the public areas on daily basis who requires their services.

The Authority should look at the organisations that are responsible for people with disability.
The Authority will look at the training programs that will be covering issues related to customer services and human rights.

Employment of Foreign Nationals: The Committee noted that the majority of the people who car guards are foreign national and was concerned about South African people who wished to work in that environment.
The Authority indicated that there are sections in the law that allows the foreign nationals to receive employment in the industry provided that the person hold a permanent residence in South Africa.

The Authority did not have the numbers of the foreign nationals who are working in the industry.

The Authority would only be able to provide numbers on those security officers who are registered.
The 203 requirement process of the Foreign Nationals was to produce a clearance on criminal record from their country of origin.

School security: The Committee reported that all the Departments have presented about the plans on school safety.

The Committee was extremely worried that there is high number of murder incidents that are happening at schools were the learners are committing violence against each other.
The Committee strongly believed that the Authority should convene a submit on school safety, it should invite all the relevant stakeholders, government bodies and Department of police.

The Authority indicated that there is a need to review the strategy at schools.

The Authority made an example that in some instance the community will choice a person from the areas to be a security at the local school.

The private schools are safe because are able to set aside a budget for security matters.
The Authority will engage with the Department Basis Education to consider allocating budget for school security safety.

Leaves: The Committee requested the Authority to indicate whether the security officers are entitled to take leave.
The security officers are entitled to take leave in line with the basic condition of employment act and the applicable labour relation act Provident Fund: The Committee wanted to know whether the Authority has a provident fund scheme for security guards who are killed on the line of duty.

The Authority indicated that there is a provident fund which is covering for the security officers who are injured in line of duty.
The provident fund covers for the following; life cover and funeral cover offered if a member dies on duty.

There is specific insurance that is responsible f or dealing with this issue.

10.

COMMITTEE RECOMMENDATIONS AND REPORTING REQUIREMENTS 10.1 Recommendations The Portfolio Committee on Police recommends the following: 1) The Authority should fill the vacancies of the Council Members as matter of urgency.
203 204 2) The Authority should implement all aspects of the Audit Action Plan to ensure that the 2019/20 audit outcomes are improved.

3) The Authority should further encourage the entrance of female security officers to the private security industry.

4) The Authority should ensure continuous consultation on the Private Security Industry Regulation Amendment Bill, as it enhances the regulatory mandate of the Authority.
5) The Authority should address corruption that is taking place in the security companies where the security officers are using accreditation which does not belong to them.

6) The Authority should improve the accreditation process and ensure that the companies are adhering to the regulations.

7) The Authority should improve a training program of the security officers w ho are deployed at schools to reduce violence against learners.
8) The Authority should strengthen the regulations on implementation of car guards.

11.

CONCLUSION The Committee believes that there is a positive improvement in the service delivery and financial and performance of the Authority and indicated that the Authority should continue to make progress in the areas that requires attention.

The Committee congratulated and appreciated the Authority for obtaining a clean audit during the 2018/19 financial year.
The Members of the Committee expressed satisfaction with positive audit outcomes of the Authority.

The Members further encouraged the Authority to remain consistent in achieving the clean audit outcomes.

The Committee further highlighted the importance of the PSIRA Council as the Accounting Authority and that the vacant position should be filled.

Report to be considered.