Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698140316152.pdf (South Africa)
Thursday, 4 May 2023] No 57—2023] FIFTH SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ THURSDAY, 4 MAY 2023 _____________________ TABLE OF CONTENTS ANNOUNCEMENTS National Assembly 1.

Membership of Committees ............................................................................................. 2 TABLINGS National Assembly and National Council of Provinces 1.
Speaker and Chairperson .................................................................................................. 2 2.

Minister in The Presidency .............................................................................................. 2 National Assembly 1.

Speaker ............................................................................................................................. 3 1 National Council of Provinces 1.
Chairperson ...................................................................................................................... 5 COMMITTEE REPORTS National Assembly 1.

2.

3.

4.
Transport .......................................................................................................................... 6 Basic Education .............................................................................................................. 14 Home Affairs .................................................................................................................. 70 Transport ...................................................................................................................... 107 National Council of Provinces 1.
Appropriations .............................................................................................................. 209 ANNOUNCEMENTS National Assembly The Speaker 1.

Membership of Committees (1) Ms L S Makhubela-Mashele was appointed as a member of the Joint Standing Committee on Intelligence on 04 May 2023, in terms of section 2(3)(a) of the Intelligence Services Oversight Act, 1994 (No 40 of 1994).

TABLINGS National Assembly and National Council of Provinces 1.
The Speaker and the Chairperson (a) Fourth Quarterly Performance Report of Parliament for 2022-23, tabled in terms of section 54(1) of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (Act No 10 of 2009).

(b) The Revised Annual Performance Plan and Budget of Parliament for 2023/2024.

2.

The Minister in The Presidency 2 (a) Annual Performance Plan of the Government Communication and Information System (GCIS) for 2023/24 – 2025/26.

National Assembly 1.


The Speaker (a) Letter from the President of the Republic, dated 2 May 2023, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force (SANDF) for service in cooperation with the South African Police Service for the prevention and combating of crime and maintenance and preservation of law and order in the Republic of South Africa under Operation Prosper.
3 02 May 2023 Dear Honourable Speaker, EMPLOYMENT OF MEMBERS OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR SERVICE IN COOPERATION WITH THE SOUTH AFRICAN POLICE SERVICE FOR THE PREVENTION AND COMBATING OF CRIME AND MAINTENANCE AND PRESERVATION OF LAW AND ORDER IN THE REPUBLIC OF SOUTH AFRICA This serves to inform the National Assembly that I have authorised the employment of 880 members of the South African National Defence Force (“SANDF”) for service in cooperation with the South African Police Service (“SAPS”) for the prevention and combating of crime and maintenance and preservation of law and order in the Republic of South Africa under OPERATION PROSPER.
Members of the SANDF employed will assist the South African Police Service (SAPS) in protecting Eskom power stations identified around the country.

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

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

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

I will communicate this report to the Chairperson of the National Council of Provinces and wish to request that you bring the contents of this letter to the attention of Members of the National Assembly.
Yours sincerely, Mr Matamela Cyril Ramaphosa President of the Republic of South Africa Hon Ms Nosiviwe Mapisa-Nqakula, MP Speaker of the National Assembly Parliament of the Republic of South Africa CAPE TOWN 4 National Council of Provinces 1.

The Chairperson (a) A petition requesting the National Council of Provinces (NCOP) to hold Eskom accountable for its failure to maintain its electricity infrastructure located at the Emfuleni Local Municipality, has been received from Hon.
D Ryder, MP on behalf of the concerned community members of Emfuleni Local Municipality, Gauteng Province.

Referred to Select Committee on Petitions and Executive Undertakings for consideration and report.

COMMITTEE REPORTS National Assembly 5 1.


REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON THE 2022/23 SECOND QUARTER EXPENDITURE OF THE DEPARTMENT OF TRANSPORT DATED 2 MAY 2023 The Portfolio Committee on Transport, having considered the expenditure of the Department of Transport for the Second Quarter of the 2022/23 financial year on 29 November 2022, reports as follows: 1.
INTRODUCTION The prime mandate of the Committee is governed by the Constitution of the Republic of South Africa, 1996 (“the Constitution”), in respect of its legislative and oversight responsibilities as public representatives.

It is required to consider legislation referred to it and consider all matters referred to it in terms of the Constitution, the Rules of the National Assembly or resolutions of the House.

It is also required to respond to matters referred to it by Government within its mandate.
In addition, the Committee is entrusted with considering the budgets, Strategic Plans and Annual Performance Plans of the Department and entities that fall within the transport portfolio.

This report provides an overview of the expenditure of the Department of Transport for the Second Quarter of the 2022/23 financial year, as presented to the Committee on 29 November 2022.

2.
2.

ANALYSIS OF THE 2022/23 SECOND QUARTER EXPENDITURE OF THE DEPARTMENT OF TRANSPORT In 2022/23, the budget allocation of the Department of Transport (“the Department”) stands at appropriately R71 billion.
By the end of the Second Quarter of the financial year, the Department had spent R34.7 billion (or 48.2%) of the total available budget.1 The delay in the spending of R422.9 million (or 1.2%) was largely due to the expenditure delays under the Public Transport Network Grant (PTNG), as transfers to the eThekwini municipality had been withheld for non- 1 National Treasury (2022a), p. 145.
6 compliance.2 Slow spending under the Compensation of Employees (CoE) line item also contributed to lower than planned expenditure.

As at the end of the Second Quarter of 2022/23, the Department had spent R240.1 million against the Quarter’s projection of R264.9 million on the CoE.

The Department spent R24.9 million lower than projected owing to the slow filling of vacant posts.3 The Department had 739 filled posts against a funded establishment of 813 posts.
This represented a vacancy rate of 9.1% (or 74 vacant posts).4 2.1 BUDGET EXPENDITURE PER PROGRAMME Table 1: Budget Expenditure per Programme ’ R l a u t c A 2 r e t r a u Q e r u t i d n e p x E f o % % - D I V O C Administrati 507.8 514.9 209.5 40.7% 238.3 28.7 12.1% 0.1 on Integrated 93 93 34 36.5% 36.8 2.8 7.7% 0.0 Transport Planning Rail 19 991.8 20 012.4 10 019.8 50.1% 10 035.9 16.1 0.2% 0.0 Transport g n i d n e p S r e t s a s i D 0.
0 0.

0 0.

0 2 National Treasury (2022a), p. 145.

3 National Treasury (2022a), p. 147.

4 Ibid.
’ R l a u t c A 2 r e t r a u Q e r u t i d n e p x E f o % % - D I V O C Road 33 983.4 35 822.8 18 400.8 51.4% 18 433.1 32.2 0.2% 0.0 Transport Civil 428.4 424.8 198.3 46.7% 209.3 11 5.2% 0.0 Aviation Transport Maritime 155.4 155.4 71.7 46.2% 77.6 5.9 7.6% 0.0 Transport Public 13 969.9 13 969.9 5 319.9 38.1% 5 646 326.2 5.8% 0.0 Transport Total 69 125.9 70 993.1 34 254.1 48.2% 34 677 422.9 1.2% 0.1 g n i d n e p S r e t s a s i D 2 9 4 0.
0 0.

0 0.

0 2 9 4 (Source: National Treasury (2022a).

2.1.1 Programme 1: Administration By the end of the Second Quarter of 2022/23, the Administration programme had spent R209.5 million against the Quarter’s projection of R238.3 million, indicating a delay in spending of 12.1% – equivalent to R28.7 million.
Expenditure delays were mainly on the CoE and on Goods and Services “for the bulk procurement of laptops and legal services”, as well as less than anticipated travelling.5 5 National Treasury (2022a), p. 147.

8 2.1.2 Programme 2: Integrated Transport Planning In the Integrated Transport Planning programme, the Department spent R34 million against the Second Quarter projection of R36.8 million.
The delay in the expenditure of 7.7%, equivalent to R2.8 million, was due to the slow progress on the Regional Corridor Strategy and the Autonomous Vehicles Regulations.6 2.1.3 Programme 3: Rail Transport The Department spent R10.02 billion against the Second Quarter projection of R10.04 billion in the Rail Transport programme.
The delay in the spending of 0.2%, equivalent to R16.1 million was owing to slow expenditure on Goods and Services for projects such as the establishment of the Interim Rail Economic Regulator and the CoE.7 2.1.4 Programme 4: Road Transport In the Road Transport programme, the Department spent R18.40 billion against the Second Quarter projection of R18.43 billion, indicating a delay in spending of 0.2% – equivalent to R32.2 million.
Slower spending was largely attributed to the outstanding payment to the Road Traffic Infringement Agency (RTIA) for operations and the Administrative Adjudication of Road Traffic Offences (AARTO) rollout, as well as the delayed invoice for the Road Traffic Management Corporation (RTMC).8 Additional delays emanated from slow spending on the S’hamba Sonke programme and the Development of the Road Disaster Management Plan.9 6 National Treasury (2022a), p. 146.

7 National Treasury (2022a), p. 146.

8 Ibid.


9 Ibid.

9 2.1.5 Programme 5: Civil Aviation Transport The Department spent R198.3 million against the Second Quarter projection of R209.3 million, translating into a delay in planned spending of 5.2% – equivalent to R11 million.
The delay in expenditure was mainly on the CoE and on Goods and Services for projects such as the National Aviation Transformation Strategy and the Review of the Airlift Strategy Implementation.10 2.1.6 Programme 6: Maritime Transport In the Maritime Transport programme, the Department spent R71.7 million against the Second Quarter projection of R77.6 million, translating into a slower than planned spending of 7.6% – equivalent to R5.9 million.
Spending delays were on Goods and Services and slow progress on projects such as:11 • The Ballast Water Management Bill; and • Review of the Merchant Shipping Bill.

2.1.7 Programme 7: Public Transport As at the end of the Second Quarter of 2022/23, the Department had spent R5.3 billion against the Quarter’s projection of R5.6 billion, indicating a slower than planned spending of 5.8% – equivalent to R326.2 million.
Spending delays were largely in Transfers and Subsidies as funds under the PTNG for the eThekwini municipality had been withheld due to non-compliance.12 Moreover, there was slower than planned expenditure on Goods and Services for the implementation of integrated public transport networks (IPTNs) in district municipalities, and Shova Kalula bicycle programme.13 10 Ibid.

11 National Treasury (2022a), p. 146.

12 Ibid.

13 Ibid.
12 Ibid.

13 Ibid.

10 2.2 COVID-19 RESPONSE As at 30 September 2022, the Department had spent R125 000.00 on COVID-19 related projects and business activities.
The COVID-19 spending mostly pertained to the procurement of protective equipment within the Department, as well as support to public transport operators in response to the pandemic.14 2.3 DISASTER RESPONSE By the end of the period under review, the Department had spent R249 million for flood damages from the 2019 flood disaster in KwaZulu-Natal.15 This was through the Provincial Roads Maintenance Grant (PRMG).
It was reported that the allocation for disaster repairs from the 2022 flood damages will only be reflected in the 2022 Adjustment, as part of the next year’s baseline allocation.16 3.

COMMITTEE OBSERVATIONS Members made the following observations during discussions: 3.1 3.2 3.3 3.4 There was still a misalignment between KPIs and service delivery.
The presentation did not cover the scholar transport programme and the Department was asked whether plans were in place to put the programme under one Department.

Every quarterly report has shown underspending by the programmes.

The Shova Kalula programme seemed on track, but was not well monitored and the Department had to consider opening service centres where the bicycles could be serviced.
3.5 It was noted that out of 172 beneficiaries for the Bursary scheme 0.58% were disabled persons whereas the national standard was a 2% threshold.

The Department was asked whether the bursaries contributed to its targets for employing persons with disabilities.

14 Ibid.

15 National Treasury (2022a), p. 147.

16 Ibid.


11 3.6 In terms of the implementation of the PRMG it was noted that regional roads were in a state of disrepair and that many of the recently constructed roads were of such poor condition that they would be washed away within 2 years.

3.7 Provinces were incapable of fixing roads.


It was noted that SANRAL currently received 75% of the budget for road maintenance, compared to the 25% allocated to provinces while SANRAL was responsible for the maintenance of a smaller road network.

3.8 The amount paid for taxi scrapping was small, if one considered the loss of business by the taxi owners and while the programme remains voluntary it will always be underspent and used under virements.
3.9 The Department replies to questions from members were regarded as inadequate and this should be improved on.

4.

COMMITTEE RECOMMENDATIONS The Committee recommends that the Minister, through the Department, should ensure the following: 4.1 The Department should provide reasons for expenditure delays on Goods and Services and the Compensation of Employees.

4.2 The Department should provide reasons for the under-expenditure and should indicate whether it has plans to stop the under-expenditure.
4.3 The Department should ensure alignment of the KPIs to achieve actual service delivery during the finalisation of the 2023/24 Annual Performance Plan as well as future Strategic Plans.

4.4 The Department should report back to the committee during each quarterly expenditure meeting on the progress in resolving the issues around scholar transport regulation as well as progress in delivering the Shova Kalula programme.
4.5 The Department should improve on its monitoring, audit, tracking and intervention in the implementation of the PRMG in order to improve on regional road quality and receiving quality road works that can add to the longevity of the road network.

12 4.6 The Department should ensure that measures are put in place to improve on the uptake of taxi scrapping under the Revised Taxi Recapitalisation Programme and report back during the next quarterly expenditure meeting on progress.

Report to be considered.


13 2.

Report of the Portfolio Committee on Basic Education on Budget Vote 16: Basic Education, dated, 2 May 2023.

The Portfolio Committee on Basic Education having considered Budget Vote 16: Basic Education, together with the Basic Education 2023/24 Annual Performance Plans of the Department of Basic Education and its Statutory Bodies, reports as follows: 1.
Introduction 1.1 The Portfolio Committee on Basic Education considered the 2023/24 Annual Performance Plan (APP) of the Department of Basic Education on Wednesday, 22 March 2023 as well as the review of its two statutory bodies i.e.

the South African Council for Educators (SACE) and the Council for Quality Assurance in General and Further Education and Training (Umalusi) on Tuesday, 28 March 2023.
1.2 The budget review briefings served to acquaint the 6th Parliament Portfolio Committee with the mandates, programmes and priorities of the Department.
1.3 Attendees that appeared before the Portfolio Committee during the Budget Review sessions included the following: 1.3.1 Department of Basic Education (DBE): Hon A Motshekga: Minister of Basic Education, Hon M R Mhaule: Deputy Minister of Basic Education, Mr H M Mweli: Director-General, Mr P R M Khunou: Chief Finance Officer, Mr S G Padayachee: Deputy Director-General, Dr G Whittle: Deputy Director-General, Dr S Simelane: Acting Deputy Director-General, Ms C Nuga-Deliwe: Chief Director, Mr D Ntloana: Director, Ms S Mbonambi: Director, Ms E Mmola: Director, Mr B Mpanza: Director, Dr R Poliah: Chief Director, Dr F Kumalo: Acting Chief Director, Ms Z Sattar: Personal Assistant, Mr S Mabua: Advisor, Ms S Ramohapi, Ms S Geyer: Director, Mr E Mhlanga: Chief Director, Mr D Van Der Westhuijzen: Director, Ms L Matshaba, Ms N Molai: Director, Ms T Mohlala: Parliamentary Liaison Officer, Mr L Mahada: Director , Ms L Carolissen: Liaison Officer, Ms S Lubisi: Liaison Officer and Mr M Matthews: Liaison Officer.
14 1.3.2 South African Council for Educators: Ms E Mokgalane: Chief Executive Officer, Mr M Mapindani: Chief Finance Officer, Ms V Hofmeester: Deputy Chairperson, Dr Swanepoel, Mr S Hlaise, Ms Y Lechaba: SACE Head, Ms T Sophethe: Manager, Mr T Njongo: Assistant Manager and Mr R Nkuna: Manager.
1.3.3 The Council for Quality Assurance in General and Further Education and Training (Umalusi): Dr M Rakometsi: Chief Executive Officer, Mr H van der Walt: Chief Finance Officer, Mr E Sibanda: Executive Manager, Ms Z Modimakwane: Executive Manager, Mr B Lepota: Senior Manager and Dr E Sujee and Ms S Mosimege: Senior Manager.
1.4 This report gives a brief summary of the presentation made by the Department of Basic Education (DBE) to the Committee, focusing mainly on the Department’s 2023/24 Annual Performance Plan, the 2020 Medium Term Expenditure Framework (MTEF) allocations, and the overview of allocations per programme.

The report also provides the Committee’s key deliberations and recommendations relating to the Vote.
1.5 Copies of all presentations on the Budget Review of the Department of Basic Education (DBE), SACE and Umalusi were available from the office of the Committee Secretary.

2.
2.

Department of Basic Education (DBE) Overview of the Annual Performance Plan (APP) for 2023/24 2.1 Strategic overview by the Department of Basic Education (DBE) The Minister of Basic Education, Hon A Motshekga, Deputy Minister Hon M R Mahaule and the Director-General, Mr H Mweli led a delegation from the DBE to present on the 2022-23 Annual Performance Plan and the Budget of the Department of Basic Education.
2.1.1 Size and Shape of the Basic Education Sector - The Department gave a detailed overview by outlining the shape and the size of the basic education sector giving a comprehensive breakdown of the number of learners, educators and schools in the ordinary schools and independent schools as follows: • Learners - 13 409 249 (Public: 12 706 157, Independent: 703 092) 1 15 • Educators - 447 123 (Public: 405 050, Independent: 42 073) • School - 24 894 (Public: 22 740, Independent: 2 154) 2.1.2 Background and Context - The Department outlined the approach to Government-wide NDP priorities and the Education sector priorities based on the NDP 2030, MTSF 2019-2024 and Action Plan to 2024.
The intention is to ensure programme activities in the sector to align with medium and long- term goals.

The Strategic Plan 2020/21-2024/25 is anchored on the Government’s long-term plan; the National Development Plan 2030: Our future – make it work, the MTSF 2019-2024 and the Action Plan to 2024.

The Annual Performance Plan (APP) sets out what the Department intends doing in the financial year and during the Medium-Term Expenditure Framework (MTEF) period to implement its Strategic Plan.
In fulfilling its legal obligation, the Department must produce and table an APP annually to Parliament.

The Strategic Plan should cover a period of at least five years and can be amended during the five-year period it covers.

The APP 2023/24 represents the fourth year of activities towards achieving the objectives contained in the DBE Strategic Plan 2020/21-2024/25.
2.1.3 Approach in the Strategic and Annual Performance Plans - The outcomes are broad to consolidate work contributed by the sector to encourage joint planning than working in silos by individual programmes to reflect the aspirations at an organisational level including the support to PEDs.

The approach to outcomes assists with clustering delivery areas which relate to strategic outcomes rather than just listing programmes and what they do.
Interventions that contribute to school preparedness are in different parts of the department, for example.

The strategic delivery areas and outputs bridge the gap between medium-to- long-term outcomes, short-term annual outputs and indicators in describing the intended change for the education system.

Using the Theory of Change for how the DBE can influence outcomes through its functions of developing policy, monitoring, and oversight National Education Policy (NEPA).
Results Model to identify the critical success factors and deliverables of the sector to ensure NDP and sector outcomes are achieved.

Evidence-based change in DBE, showing leadership of DBE through and with provinces.

Branches have been engaged in the development of the APP, analysis of the MTSF, MTSF gaps and their implications on the APP.

2 16 2.1.4 Key Government Priorities – The MTSF 2019–2024 translates the ruling party’s electoral mandate into government’s priorities over a five-year period.
Basic Education is critical in priority 2, 3, 4 and 6: • • • • Priority 1: A capable, ethical and developmental state.

Priority 2: Economic transformation and job creation.

Priority 3: Education, skills and health.

Priority 4: Consolidating the social wage through reliable and quality basic Services (DBE) reporting to Department of Social Development (DSD).

• Priority 5: Spatial integration, human settlements and local government (DBE reporting to Department of Sports Arts and Culture (DSAC).
• • Priority 6: Social cohesion and safe communities.

Priority 7: A better Africa and world.

2.1.5 2019 – 2024 Medium-Term Strategic Framework (MTSF) and Education Sector Priorities - The Department also detailed the following Education Outcomes for the 2019 – 2024 MTSF: • • • • • Outcome 1: Improved school-readiness of children.

Outcome 2: 10-year-old learners enrolled in publicly funded schools read for meaning.
Outcome 3: Youths better prepared for further studies and the world of work beyond grade 9.

Outcome 4: Youths leaving the schooling system more prepared to contribute towards a prosperous and equitable South Africa.

Outcome 5: School physical infrastructure and environment that inspires learners to learn and teachers to teach.
2.1.6 Council of Education Ministers (CEM) Priorities for the 6th Administration - These priorities were approved by the Council of Education Ministers to lay a solid foundation for quality education, in support of improved reading and learning outcomes: • Improving foundational skills of Numeracy and Literacy, especially reading should be underpinned by a Reading Revolution.
3 17 • Immediate implementation of a curriculum with skills and competencies for a changing world in all public schools (Three Stream Model, Fourth Industrial Revolution, Entrepreneurship, Focus Schools, etc.)
• Deal decisively with quality and efficiency through the implementation of standardised assessments to reduce failure, repetition, and dropout rates and introduce multiple qualifications such as General Education Certificate before the Grade 12 exit qualification • Urgent implementation of two years of ECD before Grade 1, and the migration of the 0 - 4 year olds from Department Social Development to Department of Basic Education.
• Complete an integrated Infrastructure Development Plan informed by infrastructure delivery and regular maintenance which is resourced.

• Work with Departments Sport and Recreation, Arts and Culture, Health, and South African Police Services to teach and promote Social Cohesion, Health and School Safety.
2.1.7 State-of-the-Nation Address (SONA) 2023 – Presidential pronouncements on the following: 2.1.7.1 Early Childhood Development (ECD • Provide young children with a foundation to read for meaning, learn and develop.

Under-resourced ECD programmes will be provided with daily activity plans and integrated learning and teaching resources.

Funding has been secured for this and the procurement process is due to start in the 2023/24 financial year.

• Increase the ECD subsidy to reach more children in need.
Up to Q3 in 2022/24; 315,198 children received the subsidy through the conditional grant, and 523,575 children received the subsidy through the equitable share • Streamline the requirements for ECD centres to access support and subsidies.

The DBE has been engaging with the Red Tape Reduction Unit in the Presidency to identify areas in which we can streamline to process of registering ECD programmes so that they can access the subsidy.
• Systems for planning developed • Quality assurance system in place • Second Children’s Amendment Bill • Evaluation of the National Integrated Early Childhood Development Policy (NIECDP) 4 18 2.1.7.2 Three Streams Model - To produce the skills our country needs to expand vocational education and training systems through the implementation of the approved curriculum of the three stream model.

Continued improvements on Technical Maths and Sciences.

Focus schools were introduced.


Increased enrolments in Technical Subjects specialisations.

New Curricula developed: E-Commerce & Entrepreneurship, Marine Sciences and Aviation studies.

2.1.7.3 Reading - Early grade reading study, functionality of school libraries and comprehension across the curriculum 2.1.7.4 Curriculum - Curriculum strengthening and recovery of learning 2.1.7.5 Inclusive Education - Mobilisation of out-of-school children/learners of school-going age.
Improvement of teacher competencies and qualifications in specialised areas of inclusion.

Implementation of SIAS 2.1.7.6 Skills for a Changing World - ICT Provision of Devices and Connectivity.

ICT Provision to Public Ordinary Schools and Coding and Robotics piloted 2.1.7.7 Infrastructure - Continued implementation of the SAFE programme.

Continued implementation of the ASIDI programme.

Dealing with overcrowding.
2.1.7.8 Social Cohesion – Social cohesion and equity, health promotion, National School Nutrition Programme and school safety 2.1.8 Progress on Selected Key Deliverables – The Department gave a detailed overview of the progress on some of the following key deliverables in respect the following 2.1.8.1.1 ASIDI overall progress per sub-programme; 2.1.8.1.2 Percentage of NSC performance 2016 – 2022; 2.1.8.1.3 Bachelor pass percentage 2016 – 2022; 2.1.8.1.4 Special needs education learners who passed NSC for 2022; 2.1.8.1.5 Workbooks delivery status (all provinces Volume 1 Grades 1 – 9 and Grade R) 2.1.8.1.6 Placement of Funza Lushaka graduates; and 2.1.8.1.7 National School Nutrition Programme 2.1.9 The DBE Annual Performance Plan 2023/24 - The Annual Performance Plan is divided into four (4) parts: • Part A – Mandate; • Part B – Strategic Focus 5 19 • Part C – Measuring our Performance • Part D – Technical Indicator Descriptions (TIDs) The activities of the Department have been structured into five programmes as elaborated in the Annual Performance Plan: • Programme 1: Administration; • Programme 2: Curriculum Policy, Support and Monitoring; • Programme 3: Teachers, Education Human Resources and Institutional Development; • Programme 4: Planning, Information and Assessment; and • Programme 5: Educational Enrichment Services.
For the 2023/24 Annual Performance Plan there was a combined total of 69 performance indicators for all five programmes of the Department – and could be broken down into 58 (84 percent) annual targets, nine (9) (13 percent) quarterly targets, one (1) (1 percent) bi-annual targets and one (1) (1 percent) bi-ennial target.
The 2023/24 APP Target Amendments were as follows: • Second Chance Matric Programme (Old target: 60 000; New target: 80 000) • Implementation of EGRA (Old target: 18; New target: 36) • ASIDI: New Schools (Old target: zero; New target: 9) • ASIDI: Sanitation (Old target: zero; New target: 350) • ASIDI: Water (Old target: zero; New target: 1) • Number of districts monitored on the implementation of the National School Safety Framework (NSSF) Programmes (Old target: 75; New target: 25 • Number of participants and stakeholders reached with dialogues, engagements and training workshops to end school-related gender-based violence (Old target: 75; New target: 4 000) The 2023/24 APP Indicator Amendments were as follows: • The following indicators were revised to be aligned with the MTSF deliverables for 2023/24: 6 20 • 2.1.2 Number of learners obtaining subject passes towards a National Senior Certificate (NSC) or Senior Certificate (amended) SC(a) supported through the Second Chance Matric Programme per year.
• 2.1.5 An Annual National Report is produced on piloting the new funding model for Early Childhood Development (ECD).

• 2.1.6 An Annual Sector Report is produced on monitoring the registration of ECD Programmes.

• 2.3.7 Number of public special schools provided with electronic devices as part of the Universal Service Access Obligations.

• The following indicator was removed for 2023/24 and monitoring will continue through the MTSF and the new indicator will be crafted for 2024/25.
• 4.3.5 Number of districts in which teacher development has been conducted as per district improvement plans 2.1.10 Programme 1 – Administration 2.1.10.1 Annual Outcome Indicators: • Number of capacity building programmes offered to the DBE officials – The target set by the Department stood at 15 capacity building programmes for 2023/24.

• Annual Performance Plan approved by 31 March each financial year – The Department’s target was to have the 2024/25 APP approved by March 2024.
2.1.10.2 Quarterly Outcome Indicators: • Percentage of valid invoices paid within 30 days upon receipt by the Department – The target set by the Department stood at 100 percent.

• Number of reports on misconduct cases resolved within 90 days – The quarterly target set by the Department stood at four (4) reports.
• Number of Schedule 4 and 5 Conditional Grants Quarterly Performance Reports submitted to National Treasury (NT) 45 days after the end of each quarter - The target set by the Department stood at 24 reports.

7 21 • Number of Quarterly Performance Reports submitted to National Treasury(NT) and the DPME 30 days after the end of each quarter – The target set by the Department stood at 4 reports.
2.1.11 Programme 2 – Curriculum Policy, Support and Monitoring: 2.1.11.1 Annual Outcome Indicators: • Number of Children/ Learners with Profound Intellectual Disability (C/LPID) using the Learning Programme for C/LPID using the Learning Programme for C/LPID – The Department’s target is set at 4 127 children/learners • An Annual National Report is produced on monitoring of the implementation of the Policy on Screening, Identification, Assessment and Support (SIAS) as a mechanism for early identification and intervention – The target was for an approved Annual National Report on monitoring of the implementation of the policy on SIAS as a mechanism for early identification and intervention.
• An Annual National Report is produced on piloting the new funding model for Early Childhood Development (ECD) - The target was for an approved Annual National Report on piloting the new funding model for ECD.

• An Annual National Report is produced on monitoring the registration of ECD Programmes - The target was for an approved Annual National Report on monitoring the registration of ECD Programmes.
• An Annual National Report is produced on developing an Early Childhood Development Human Resource Development Plan - The target was for an approved Annual National Report on the approved service delivery and HR model.

• Number of districts monitored on implementation of the National Curriculum Statement (NCS) for Grades 10 -12 – The Department’s target is set at 15 districts monitored.
8 22 • Number of provinces monitored on extra-support classes to increase the number of learners achieving Bachelor level passes - The Departments target is set at nine (9) provinces monitored.

• Number of schools monitored for implementing compulsory entrepreneurship education - The Departments target is set at 225 schools.

• An Annual National Report is produced on piloting of the General Education Certificate (GEC) – The target is an approved Annual National Report on piloting of the GEC.
• An Annual Sector Report is produced on schools that pilot and implement the Vocational Stream and Occupational Stream, respectively – The target is an approved Annual Sector Report on schools that pilot and implement the Vocational Stream and Occupational Stream, respectively • Number of schools monitored for piloting the Coding and Robotics Curriculum - The target is set at 18 schools (2 per piloting province).
• Number of schools monitored on the implementation of the reading norms - The Departments target is set at 18 schools.

• Number of schools monitored on the implementation of the Incremental Introduction to African Languages (IIAL) - The Departments target is set at 18 schools.

• Number of underperforming schools monitored on the implementation of the Early Grade Reading Assessment (EGRA) - The Departments target is set at 36 schools.
• Number of schools with multi-grade classes monitored for implementing the multi-grade toolkit - The Departments target is set at 36 schools.

• An Annual Sector Report is produced on the implementation of the National Reading Plan - The target is an approved Annual Sector Report on the implementation of the National Reading Plan.
• An Annual Sector Report is produced on the number of public schools monitored on the availability of readers - The target is an approved 9 23 Annual Sector Report on the number of public schools monitored on the availability of readers.

• Number of schools per province monitored for utilisation of Information and Communication Technology (ICT) resources - The Departments target is set at 27 schools (three per province).
• Percentage of public schools provided with Home Language workbooks for learners in Grades 1 to 6 per year, after having placed an order - The Departments target is set at 100 percent for 2023/24.

• Percentage of public schools provided with Mathematics workbooks for learners in Grades 1 to 9 per year, after having placed an order - The Departments target is set at 100 percent for 2023/24.
• Percentage of public schools provided with workbooks for learners in Grades R per year, after having placed an order - The Departments target is set at 100 percent for 2023/24.
• An Annual Sector Report is produced on the percentage of learners provided with Mathematics and English First Additional Language (EFAL) textbooks in Grades 3, 6, 9 and 12 - The target is an approved Annual Sector Report on the learners provided with Mathematics and English First Additional Language (EFAL) textbooks in Grades 3, 6, 9 and 12.
• The number of schools monitored for home languages in which Literacy Grades 1-3 Lesson Plans have been developed for terms 1 to 4 - The Departments target is set at 10 schools.

• Number of public special schools provided with electronic devices as part of the Universal Service Access Obligation - The Departments target is set at 87 public special schools.
• An Annual Sector Report is produced on the monitoring of procurement and distribution of ICT devices - The target is an approved Annual Sector Report on the monitoring of procurement and distribution of ICT devices.

• An Annual Sector Report is produced on the number of teachers trained on inclusion - The target is an approved Annual Sector Report on the number of teachers trained on inclusion.
10 24 • An Annual Sector Report is produced on the number of learners in public special schools - The target is an approved Annual Sector Report on the number of learners in public special schools.

• An Annual Sector Report is produced on the percentage of public special schools serving as resource centres - The target is an approved Annual Sector Report on the percentage of public special schools serving as resource centres.
• An Annual Sector Report is produced on the establishment of Focus Schools per PED - The target is an approved Annual Sector Report on the establishment of Focus Schools per PED.

2.1.11.2 Quarterly Outcome Indicators: • Number of Technical schools monitored for implementation of Curriculum and Assessment Policy Statements (CAPS) – The target set by the Department is 18 schools monitored.
2.1.11.3 Bi-Annual Outcome Indicators: • Number of learners obtaining subject passes towards a National Senior Certificate (NSC) or Senior Certificate (amended) supported through the Second Chance Matric Programme (SCMP) per year - The target set by the Department is 80 000 learners.
2.1.12 Programme 3: Teachers, Education Human Resources and Institutional Development 2.1.12.1 Annual Outcome Indicators: • Percentage of School Governing Bodies (SGBs) that meet the minimum criteria in terms of effectiveness – The Departments target is set at 90 percent of 1 000 sampled schools.

• Percentage of schools producing the minimum set of management documents at a required standard - The Departments target is set at 100 percent of 1 000 sampled schools.
11 25 • Number of Funza Lushaka bursaries awarded to students enrolled for Initial Teacher Education per year - The Departments target is set at 12 000 bursaries awarded.

• An Annual National Report is produced on the number of qualified teachers aged 30 and below entering the public service as teachers - The target is an approved Annual National Report on the number of qualified teachers aged 30 and below entering the public service as teachers.
• An Annual Sector Report is produced on monitoring the functionality of Provincial Teacher Development Institutes and District Teacher Development Centres – The target is an approved Annual Sector Report is produced on monitoring the functionality of Provincial Teacher Development Institutes and District Teacher Development Centres.
• An Annual Sector Report is produced on monitoring the implementation of Teacher Development Programmes by PEDs with special focus on Language, Mathematics, Physical Sciences and Accounting – The target is an approved Annual Sector Report is produced on monitoring the implementation of Teacher Development Programmes by PEDs with special focus on Language, Mathematics, Physical Sciences and Accounting.
• Number of PEDs that had their post- provisioning processes assessed for compliance with the post-provisioning norms and standards - The Departments target is set at nine.

• An Annual Sector Report is produced on the number of Grade R practitioners with NQF level 6 and above qualification - The target is an approved Annual Sector Report is produced on the number of Grade R practitioners with NQF Level 6 and above qualification.
• Number of PEDs monitored on the implementation of the Quality Management System (QMS) for school-based educators - The target is set at nine PEDs monitored.

• Number of PEDs monitored on the implementation of Education Management Service: Performance Management and Development System (EMS: PMDS) - The target is set at nine PEDs monitored.
12 26 2.1.12.2 Quarterly Outcome Indicators: • Number of quarterly monitoring reports tracking the percentage of Funza Lushaka graduates placed within six (6) months upon confirmation that the bursar has completed studies - The Department’s target is set at four reports.

2.1.13 Programme 4: Planning, Information and Assessment 2.1.13.1 Annual Outcome Indicators: • Number of new schools built and completed through ASIDI - The Department’s target is set at 9 schools.
• Number of schools provided with sanitation facilities - The Department’s target is set at 350 schools.

• Number of schools provided with water facilities through ASIDI - The Department’s target is set at 1 school.

• Number of General Education and Training (GET) test items developed in Language and Mathematics for Grades 3, 6 and 9 - The Department’s target is set at 500 test items developed.

• Number of NSC reports produced - The Department’s target is set at four reports.
• Number of question papers set for June and November examinations - The Department’s target is set at 320 question papers.

• Percentage of public schools using the South African School Administration Systems (SA-SAMs) for reporting - The Department’s target is set at 98 percent of public schools.
• An Annual National Report is produced on the number of provinces monitored for implementation of Learner Unit Record Information and Tracking System (LURITS) and EMIS priorities – The target is an approved Annual National Report on the number of provinces monitored for implementation of Learner Unit Record Information and Tracking System (LURITS) and EMIS priorities.
• An Annual National Report is produced on learning outcomes linked to a systemic study featuring in the National Assessment Framework – 13 27 The target is an approved Annual National Report on learning outcomes linked to a systemic study featuring in the National Assessment Framework.
• An Annual National Report is produced on the Early Learning National Assessment to determine school readiness - The target is an approved Annual National Report on the Early Learning National Assessment to determine school readiness.

• Number of officials from districts that achieved below the national benchmark in the NSC participating in a mentoring programme - The Department’s target is set at 60.
• Percentage of District Directors that have undergone competency assessment prior to their appointment - The Department’s target is set at 100 percent of District Directors.

• Number of underperforming secondary schools monitored at least twice a year by sector officials - The Department’s target is set at 1 000 underperforming secondary schools monitored.

• Number of District Director forums held - The Department’s target is set at three forums.
2.1.13.2 Biennial Outcome Indicators: • Percentage of school principals rating the support services of districts as being satisfactory - The Department’s target for 2023/24 was zero, with 75 percent target for 2024/25.
2.1.14 Programme 5: Educational Enrichment Services 2.1.14.1 Annual Outcome Indicators: • An Annual Sector Report is produced on the provision of nutritious meals and compliance with feeding requirements - The target is an approved Annual Sector Report on the provision of nutritious meals and compliance with feeding requirements.

• Number of PEDs with approved annual business plans for the HIV/AIDS Life Skills Education Programme - The Department’s target is set at nine PEDs with approved business plans.
14 28 • Number of professionals trained in SASCE programmes - The Department’s target is set at 900 professionals trained.

2.1.14.2 Quarterly Outcome Indicators: • Number of districts monitored in the implementation of the National School Safety Framework (NSSF) Programmes - The Department’s target is set at 25 districts monitored.

• Number of learners, educators, parents, SGBs and other education stakeholders reached through social cohesion programmes - The Department’s target is set at 4 000.
• Number of participants and stakeholders reached with dialogues, engagements and training workshops to end school-related gender- based violence – The Department’s target is set at 4 000 participants and stakeholders 2.2 Budget Allocations – 2023 2.2.1 2023 MTEF Allocation Per Programme 2022/23 R’000 Administration 564 151 2023/24 R’000 % Var 2024/25 R’000 % Var 2025/26 R’000 538 829 5% 564 838 4% 587 439 % Var - 5% Curriculum Policy, 3 271 006 7% 3 526 130 13% 4 075 850 12% 4 637 667 Support and Monitoring Teachers, Education 1 504 132 0% 1 507 517 4% 1 567 110 4% 1 635 895 Human Resources and Institutional Development Planning, Information 15 532 764 7% 16 615 877 1% 16 710 586 4% 17 430 200 and Assessment Educational Enrichment Services 8 821 107 8% 9 594 360 5% 10 108 018 5% 10 637 472 Total 29 693 160 7% 31 782 713 4% 33 026 402 5% 34 928 673 15 29 2.2.2 2023 MTEF Allocation per Economic Classification 2022/23 R’000 % Var 2023/24 % Var 2024/25 R’000 R’000 % Var 2025/26 R’000 565 555 -1% 557 535 4% 582 081 4% 607 658 Compensation of employees Goods and services Interest and Rent on Land 2 228 503 38 553 Transfers and subsidies 24 799 298 Payments of capital assets 2 061 086 Payments of Financial 165 2 460 990 36 184 26 990 726 -24% -1% 6% 1 992 340 35 870 28 595 645 4% -2% 6% 2 079 354 35 062 30 298 497 1 737 278 5% 1 820 466 5% 1 908 102 9% -7% 8% -19% 0% Assets Total 2023 Indicative Allocation 29 693 160 7% 31 782 713 4% 33 026 402 5% 34 928 673 2.2.3 2023 MTEF Allocations 2022/23 % Var 2023/24 % Var R’000 R’000 2024/25 R’000 % Var 2025/26 R’000 29 372 764 3% 30 388 009 3% 31 406 684 4% 32 813 705 Departmental baseline 6 532 266 -5% 6 237 229 4% 6 511 698 Conditional Grants to Education 12 229 436 7% 13 094 195 2% 13 341 856 4% 13 939 571 Infrastructure Grant National School Nutrition Programme 8 504 132 4% 8 878
 942 4% 9 277 690 4% 9 693 331 16 provinces Learners with Profound Intellectual Disability Grant Early Childhood Development Maths, Science and Technology grant 30 grant HIV and AIDS (life 241 054 0% 241 653 4% 252 506 4% 263 818 skills education) grant BASELINE INCREASES Compensation of employees Buildings and other fixed structures Goods and services Machinery and equipment Departmental agencies and accounts (Umalusi) Foreign government and International organisations (ADEA) Ntataise (ECD function) Presidential Employment Stimulus: Oversight South African Congress for Early Childhood Development (ECD function) Uhambo foundation (ECD function) 73 805 67% 222 205 - -1 371% 0 0% - 0% 13 870 2 950 -13% 63% 12 247 7 970 20 000 0% 836 0% 1 083 0% 5 000 0% 826 0% 2 130 0% 2.2.4 2023 MTEF Allocation (Baseline Reduction) 2022/23 % Var 2023/24 % Var 2024/25 % Var R’000 R’000 R’000 (53 581) -834% (5 735) 14% (6 667) 29% BASELINE REDUCTIONS 2025/26 R’000 (9 381) 17 31 Interest and rent on land Machinery and equipment 0 0 100% 100% (4 525) 32% (6 667) 29% (1 210) 0% - (9 381) - Departmental Agencies (3 000) 0% and Accounts Goods and Services (24 421) 0% (Departmental Operations) Households (Funza (26 160) 0% Lushaka) 2.2.5 2023 MTEF Allocations (Adjustments to Conditional Grants) 2022/23 R’000 167 179 % Var 86% 2023/24 R’000 1 178 234 % Var 26% 2024/25 R’000 1 590 000 % Var 24% 2025/26 R’000 2 083 000 764 0% - 0% 587 000 40% 985 000 ADJUSTMENTS TO CONDITIONAL GRANTS Early Childhood development grant 778 234 400 000 -55% 20% 503 000 500 000 -1% 17% 498 000 600 000 Education Infrastructure grant 154 649 Learners with Profound Intellectual Disability Grant Maths, Science and Technology Grant HIV and AIDS (Life Skills Education) Grant 4 189 6 091 265 80% 99% 0% 0% Learners with Profound 1 221 0% Intellectual Disability Grant TOTAL ALLOCATIONS 29 560 167 7% 31 782 713 4% 33
 026 402 5% 34 928 673 2.2.6 2023 MTEF Allocation (Earmarked Amounts) 2022/23 % Var 2023/24 % Var R’000 R’000 2024/25 R’000 % Var 2025/26 R’000 EARMARKED AMOUNTS 18 32 Matric Second 58 162 Chance Uhambo Foundation (ECD function) 2 130 Ntataise (ECD -100% - - - function) SA Congress for Early Childhood Dev.
(ECD function) Workbooks Oversight of Maths, Science and Technology Grant - National Presidential Employment Stimulus – Oversight South African 15 528 0% 15 599 5% 16 434 4% 17 170 Council of Educators NSFAS: Funza 1 328 953 0% 1 334 160 4% 1 395 251 4% 1 457 758 Lushaka bursary programme Umalusi Council 162 031 1% 162 945 4% 169 365 4% 175 953 for Quality Assurance Southern and Eastern Africa Consortium for Monitoring Educational Quality National Education Collaboration Trust -1 438% 13 000 13% 15 000 National School Nutrition Programme Grant: National Learners with Profound Intellectual Disabilities Grant – National Early Childhood Development: resource package and project administration TOTAL 2 912 079 7% 3 140 310 -2% 3 080 126 ALLOCATIONS SPECIFICALLY 2 403 119 -16% 2 078 702 4% 2 172 048 4% 4% 3 220 534 2 269 351 AND EXCLUSIVELY APPROPRIATED School Infrastructure Backlogs: Indirect Grant 2 403 119 -16% 2 078 702 4% 2 172 048 4% 2 269 351 2.3 Members Observations and Questions • Some Members viewed the DBE Strategic Plan and APP as flawed as there was no understanding of the various inputs and programmes of the Department.
Members queried the impact of the inputs and outputs as presented in the reports of the Department.

There was a need for adequate research to be conducted by the Department on many aspects of the various programmes and targets of the Department.

Such research could also be conducted by independent bodies.

• Comprehensive Sexuality Education (CSE) had failed and the budget could be re-allocated to other programmes e.g.

NSNP.
NSNP.

The Department needed to submit reports on NSNP to the Committee and ensure proper monitoring and oversight of the NSNP.

• Members noted that questions had been forwarded to the Department with no responses from the 20 34 Department.

What was the turn-around time for responses to Members questions and whether the Department kept a log/record of Members questions?

• Some targets and programmes were hardly mentioned in the current reporting e.g.

school mergers/closures as well as SGB budgeting.


• Members queried whether the Department was considering paying stipends to SGB members.

• Members noted the number of Funza Lushaka graduates against the number of graduates placed.

Members queried how the Department would ensure all Funza Lushaka graduates were adequately placed in schools.

Members raised concern with the high number of Funza Lushaka graduates still unemployed – and queried time-frames for having them placed in employment.
• On school infrastructure, water and sanitation, Members queried the plans in place to ensure adequate and safe ablution facilities and water reticulation to schools.

• An ongoing concern was learner transport as many learners walked long distances to and from school.

It was noted that this did not fall with DBE in all provinces as it was still a function of the Department of Transport in other provinces.
Members queried whether the Department could review the learner transport policy and ensure that this function was fully with DBE.

• Members also queried the readiness of the Department for the compulsory Grade R moving forward.

Members queried whether the Department had adequately budgeted for the new additional function.

• Members queried the percentage of the budget assigned to teacher development outside of SACE.

– and what would such training and development entail.
What were the number of teachers identified per province for such professional training and development?

How would the professional development of teachers be monitored.

• On ECD, Members queried challenges with registration processes for ECD Centres – how was the Department assisting ECD Centres to be fully registered.

Was there a strategy to register the bulk of ECD centres.
Members also queried the number of school the new ECD funding model was being piloted – and how were these school identified for the pilot.

How did the Department factor in the independent ECD Centres?

• Members queried when the 0 – 4 year-olds would be fully migrated from Social Development to DBE • Members noted delays with infrastructure projects and queried how the Department planned to ensure budgets for infrastructure was better spent.
There was a challenge with infrastructure backlogs and the delays were not acceptable.

• Members also queried mechanisms in place to ensure consequent management for errant 21 35 officials.

• The WCED had been successful with a project of rapid-school-building.

Members queried whether the Department had studied and investigated the project in view of possible replicating it in other provinces.

Members queried the number of schools the Department was planning to build in the current financial year.
• Members noted concerns regarding the safety of the VIP toilets being used in schools.

Members queried how the Department was addressing the removal and replacement of these unsafe toilets.

Similarly, Members urged rapid and fast-tracking of the eradication of pit-toilets still used in schools.

Members queried the reason for the shifting of the deadline for eradication of all pit- toilets.

• Members also queried reasons for the Eastern Cape and Mpumalanga not having fully spent their allocated budget.
• For the number of schools with water/sanitation and reticulation challenges, Members queried the number of school that had been assisted by the Department.

• Members queried the programmes and plans in place to track, trace and retain learners who may have dropped-out of the system.

• In respect of the 3-Stream Curriculum model, Members queried whether the Department involved career counselling for learners in this regard.

How many counsellors were employed by the Department?
• Members also noted the concerns raised around teacher workload and queried how the Department was addressing this challenges and alleviating the workload of teachers by employing more Education Assistants on a permanent basis.

• The Department was queried whether they intended to consider piloting continuous assessments in future • Members also queried how the Department was addressing the serious shortage of school libraries on school premises.
• On language policy, Members queried the number of language policies that were being reviewed by the Departments – and reasons for such reviews.

Members also queried which languages were being prioritised for schools.

Members also sought clarity on the Department’s involvement in standardizing the development of indigenous languages.

• Members queried the programmes and plans for addressing learner health and wellness.
• The Department was queried on whether they had an accountability system in place for principals.

22 36 • Members also sought detail and clarity on t=how the measurement was done for enrollment of 6- year-olds for Grade R and 5-year-olds for Grade RR • Providing and delivering quality education hinged on many factors and Members queried the challenges with the infrastructure backlogs and how this was being addressed.
Members sought a detailed breakdown of the backlogs on infrastructure per province to constructively advise on the matter.

• Members also sought clarity on backlogs in school water and sanitation in provinces to be reported on.

• Members also argued for the centralisation of scholar transport to the Department of Basic Education.
• In respect of learner-drop-outs, Members requested that the Department be scheduled to present to the Committee on their scientific data, statistics and information on the matter – also share the mitigating factors for the high rate of learner drop-outs.

• The President, on numerous occasions, shared his views on the importance of migrating ECD from Social Development to DBE.
Members queried the current status of the migration and the budget analysis for ECD including ECD infrastructure • Members were in agreement that many of the issues raised by Members for reply, could be considered for separate briefing sessions by the Department in the 2nd Term of Parliament.

• Members also queried whether the budget for DBE was adequate for addressing al challenges and programmes sufficiently – and positively impact on DBE targets.
• Members queried how the Department aimed to address the issues pertaining to school overcrowding, especially in rural and township schools.

• Members also queried the total number of misconduct cases reported – and what such misconduct entailed and who the perpetrators of such misconduct were.

• Member also sought detail on the number of officials who had been capacitated per district and per province.
2.4 DBE Responses to Observations and Questions Minister, Mrs A Motshekga – The Minister, in her responses reminded Members that the Department was presenting a budget according to the necessary guidelines.

Many of the issues raised by Members were located on the Department’s business plans.

Hon Motshekga was of the view that 23 37 many of the issues raised by Members would be better explained and dealt with in a workshop.
The Department had ample and relevant data and information on many of the matters raised which could be shared with the Portfolio Committee e.g.

water and sanitation, infrastructure, NSNP, Scholar Transport etc.

The Department had weekly meetings on many of these areas of focus – with reporting.

The Minister also indicated that many of the issues raised were informed by existing polices e.g.

school closures – while others were may not be measurable as they may have social connotations.
She appreciated the inputs, observations and questions from Members but also urged the Members also informed themselves as many of the details were documented and contained on the Department’s platforms.

Deputy Minister, Dr R Mhaule - Dr Mhaule also agreed that many of the questions and observations were regularly report to the Portfolio Committee.

The Department admitted that they may not adequate resources and budget to deal with all areas – but had palns in place to deal with them.
Many of the questions and observations also leaned themselves to an Annual Report presentation of the Department.

Dr Mhaule was of the view that many of the questions be responded to in writing by the Department.

The Deputy Minister acknowledged that the Departmental budget was never sufficient for all priority areas of the Department and would require additional funding for certain programmes and targets.
Director-General, Mr H Mweli – Mr Mweli agreed that the Department be allowed to respond to all questions in writing due to time constraints.

He further agreed with previous speakers that many of the questions raised had been responded to by the Department in the past.

On issues of misconduct cases, these referred specifically to DBE official only.
He mentioned that he had requested that the Department be given a meeting slot to present on learner drop-outs – as this presentation was ready to be delivered to Members.

On the safety of ablution facilities, the Department indicated that those monitored by DBE were 100 percent safe – although there may be unsafe structures still in the system which were being addressed.

The Department focussed on appropriate, safe and dry sanitation where school had water challenges.
Mr Mweli agreed to follow-up on questions to the Department that may not have been responded to.

Members did take exception to being told what and how to ask questions to the Department -as this was part of their oversight duty as public representatives.

Where questions may be misunderstood, the Department was free to seek clarity.

The Department needed to give answers to questions raised by Members of the Portfolio Committee.
24 38 Minister Motshekga indicated that she would not come to meetings of the Portfolio Committee to be abused by the opposition – and create wrong impression.

There should be mutual respect and professionalism in engagements.

3.
3.

Overview of Strategic Imperatives and Budget Allocations of the Department’s Statutory Bodies 3.1 South African Council for Educators (SACE) SACE (the Council) presented the Council and Executive Authority approved 2023/24 Annual Performance Plan (APP) and Budget as well as the 2020 – 2025 Strategic Plan Mid- Term Review Report – outlining the pre-determined objectives as aligned to the SACE mandate and the budget programme structure.
The presentation commenced with details pertaining to the founding legislative ad policy environment SACE worked within.

The SACE Act No.31 of 2000 as amended required the Council to: • Provide for the registration of educators; • Promote the professional development of educators; • Set, maintain and protect ethical standards and professional standards for educators, by means of the functioning of the Council.
3.1.1 SACE Legislative Mandate Delivery Environment – SACE was the only Statutory Teaching Council with a total of 480 000 office and school based educators.

The sector encompassed the National Department of Basic Education, nine (9) Provincial Education Departments, 73 Education Districts and 25 000 Institutions.

SACE covered 24 public and 14 private higher education institutions as well as 12 000 TVET college lecturers and CET college lecturers.
3.1.2 Progress Towards the Achievement of 2020 – 2025 Strategic Plan Outcomes – A Mid- term Assessment Report provides information about progress on implementing the institution’s Strategic Plan after the first two and a half financial years of implementation, 25 39 with particular reference to the delivery of outcomes in relation to government priorities.

SACE has a total of five (5) outcomes that must be reported against the strategic plan i.e.
• Efficient and effective governance; • Fit-to-practice registered educators and lecturers; • Maintain ethical standards; • • Improved teacher competence; and Improved teacher professionalism.

3.1.3 Progress in Achieving 2020-2025Startegic Plan Outcomes • Efficient and effective governance – The five-year target was set at 100 percent of internal and external audit recommendations implemented.

The actual achievement as at 30 September 2022 was 78 percent.
Improvements required included setting of firm timelines for the implementation of audit recommendations and strengthen monitoring and feedback mechanisms for the implementation of audit recommendations.

• Fit-to-Practice registered educators and lecturers - The five-year target was set at 100 percent of educators and lecturers screened for fitness-to-practice.

The actual achievement as at 30 September 2022 was 87.3 percent for registered walk-ins and printing all applications.
Improvements required included increased awareness and education on the requirements to be considered as fit-to-practice.

Strengthening of working relationships with key role players such as SAQA, SAPS and Home Affairs to strengthen process of screening teachers.

Improved collaboration with HEIs to enable provisional registration of student teachers and promotion of the use of the online platform for professional registration.
• Maintained Ethical Standards - The five-year target was set at 400 000 educators who adhered to the code of professional ethics.

The actual achievement as at 30 September 2022 was 596 896 educators.

Improvements required included to employ and optimise the use of virtual disciplinary hearing sessions.

Increase the use of external investigators and panellists to deal with cases of alleged misconduct and promote improved ethical conduct among educators.
• Improved Teacher Competence - The five-year target was set at 80 percent (100 187.5) educators participating in professional development activities.

The actual achievement as at 30 September 2022 was 91.2 percent (91 413) educators.

Target is 26 40 over-achieved – however, SACE will continue to promote the value of CPTD points for educators, particularly in rural areas and among School Management Teams.
• Improved Teacher Professionalisation - The five-year target was set at implemented teacher professionalisation path to strengthen teacher education and development continuum.

The actual achievement as at 30 September 2022 was that eight focus areas were planned for the 2020-2025 financial years.

Various methods and processes have been used to implement some of the focus areas.

The Council has not yet developed the policies and frameworks that guide the implementation of this programme.
Improvements required included the development of policies and frameworks in order to implement the path and a monthly monitoring tool will be developed to monitor the process.

3.1.4 Annual Performance Plan 2023/24 Focus Areas • Professional Registration o Provisional registration of student teachers.

o Registration of Newly qualified educators who are fit to practise o Registration of more ECD practitioners and people in special categories.
• Professional Development o Quality Management of the provisioning of fit-for-purpose SACE endorsed professional development activities by the SACE approved providers; o Mandatory reporting to SACE, teachers’ participation in endorsed professional development activities and programmes by the selected providers.

o Support of educators on professional matters.
• Ethical Standards o Old and new investigations o Old and new Disciplinary Hearings o Enforcement through sanctioning 3.1.5 Financial Information MTEF Projection to 2026 27 41 Financial performance 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 in R,000 Revenue Registration fees Subscription fees Reinstatement fees Reprints of certificates Interest receivable CPTD Subsidy Sundry income Audited Audited Audited Budget Medium Term Medium Term Medium Term Financial performance in R,000 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Medium Term Medium Term Medium Term Audited Audited Audited Budget Expenditure Administration Research Professional Development Registration Code of Ethics Teacher Professionalization Surplus/Deficit • Detailed Budget 2023/24 28 42 • Notes • The council projects a decline in revenue from the current year in line with guaranteed income • Subscription fees are unstable and therefore conservatively projected • Reduction of CPTD government subsidy • The revenue is projected to be constant over the MTEF • The council is encountering budget pressure against economic difficulties • Increase in fixed costs affect the reduction of mandatory function budget 29 43 • Council has a standing decision to review its funding on an annual basis • The process is underway to review funding with the view of improving
 the service delivery • The delay was caused by amongst other factors the public sector bargaining • Stringent Cost cutting measures being implemented • There is a projected decrease in operation except due to a pressurised budget • Council will be operating the Western Cape provincial office in the first quarter while the feasibility study and operation of the Northern Cape office will be concluded with the improved funding under consideration • Council will conclude job evaluation in the first quarter of 2023/24 • This together with the funding review will improve the service delivery • The reviewed funding will influence the MTEF budget 3.1.6 Performance Information – The Programme Budget Structure was as follows: • Programme 1: Administration • Programme 2: Professional Registration • Programme 3: Ethical Standards • Programme 4: Professional Development • Programme 5: Professional Teaching Standards • Programme 6: Research 3.1.6.1 Programme 1: Administration – The purpose of this programme is to implement and manage the policy directives and priorities of the Council to ensure the functional proficiency of SACE through appropriate support services.
Sub-Programmes included • Executive and Governance • Planning, Monitoring & Evaluation and Reporting • Corporate Services • Communication and Stakeholder Relations • Financial Management • Information and Communication Technology Output Indicators: • Number of Council and EXCO meetings convened – The SACE target is set at 10 meetings convened.

30 44 • Number of approved quarterly performance reports submitted to oversight authorities – The SACE target is set at four reports submitted.
• Percentage of employees assessed for performance through performance evaluation development system – The target is set at 100 percent.

• Percentage of trained employees – The target is set at 40 percent • Number of engagements held with stakeholders within a financial year – The target is set at 16 engagements.

• Percentage of eligible invoices paid within 30 days of receipt – The target is set at 100 percent of invoices paid.
• Percentage of ICT systems enhanced within a financial year – The target is set at 50 percent.

3.1.6.2 Programme 2: Professional Registration - The purpose of this programme is to register qualified educators and create sub-registers for special categories; maintain and update the educator database, and enhance the quality of the registration of teachers by introducing standards.
• Fitness-to-Practice in terms of Professional Registration means and educator/student teacher who applied for professional registration must: o Have a satisfactory police clearance against the criminal record check with the SAPS.

o Have SAPS clearance certificate provided by the Criminal Record and Crime Scene Management of the South African Police Service and should state whether any criminal offences have been recorded against the applicant in the Republic of South Africa.
o If an applicant has a criminal record, it is analysed in terms of the Fit-to-Teach Processes and where necessary must appear before the Fit-to-Teach Committee.

o Have been screened and cleared against the Department of Justice and Constitutional Development’s National Register of Sexual Offenders.

o Have been screened and cleared against the Department of Social Development’s National Child Protection Register (Only employers have access).
31 45 o Screening of the Foreign qualifications' evaluation process as GENUINE and NOT FRAUDULENT.

o Have qualifications that have been screened and verified by SAQA against the National Learner Record Database and (Currently not happening due to financial constraints) Output Indicators: • Percentage of eligible fit-to-practice registered educators - The target is set at 100 percent of educators.
3.1.6.3 Programme 3: Ethical Standards - The purpose of this programme is to promote and maintain ethical standards in the profession • Prevailing Challenges – Challenges highlighted included the following: o Operational budget of R2m for 2023/24 for over 900 cases o Inadequate funds v/s increasing caseload and inevitable case backlogs o Reduced targets amidst the increasing caseload o Prioritisation of corporal punishment and sexual misconduct cases in 2023/24 o Possible institutional arrangements and networks to explore strategic and lawful ways of sharing evidence and resources without compromising independence/separation of powers – DBE, 9 Provincial Education Departments, Education Labour Relations Council, School Governing Bodies Associations, and Independent schooling employers.
Output Indicators: • Percentage of eligible cases investigated and finalised within a year of receipt – The SACE target is set at 40 percent of investigations.

• Percentage of disciplinary hearings finalised after ratification by the ethics committee – The target is set at 10 percent of hearings.

• Percentage of rolled-over disciplinary hearings/cases finalised – The target was set at 30 percent of roll-over hearings/cases.
3.1.6.4 Programme 4: Professional Development – The purpose of this programme is to ensure that educators engage in life-long learning to improve their professional competence.

32 46 • The SACE Act dictates that SACE “must manage a system for the promotion of continuing professional development for all educators in schools” – CPTD Management System.

Thus, SACE is not a provider of continuing professional development for teachers.
• Quality Management Role - It plays a quality management role in the provisioning of fit-for-purpose and relevant continuing professional development, in line with the NDP (2012), National Policy Framework on Teacher Education and Development (2007) and Integrated Strategic Planning Framework on Teacher Education (2011) through: o Approval of relevant, genuine and quality professional develop providers across the sector (DBE and other Government Departments, 9 Provincial Education Departments, Higher Education Institutions, Teacher Unions, Private Providers, NGOs/FBOs and others) o Endorsement of Professional Development Programmes and Activities (against quality, fit-for-purpose, and the fitness of purpose criteria).
These endorsed programmes and activities can only be provided to teachers by SACE-approved providers.

o Allocation of Professional Development Points to the endorsed professional programmes and activities against the set quality and duration criteria.
• Professional Regulation of the Maintenance of Professional Membership and Status – As part of its professional regulation, SACE must ensure that teachers as professionally registered professionals, maintain their professional membership and status through: o Professional support, education and persuasion to participate in the CPTD system and various types of relevant endorsed professional development programmes and activities; o Participation in the promoted and advocated SACE-endorsed professional development programmes and activities offered by the SACE-approved providers to the teachers; o Earning a minimum of 150 points over a cycle of three years from their participation in the SACE-endorsed professional development programmes and activities; and 33 47 o Reporting their professional development uptake and earned points to SACE periodically over the three-year CPTD cycle – As part of lifelong learning, earned points expire after every three-year cycle.
• Quality and Fit-for-Purpose Professional Development Research, Monitoring, Evaluation and Reporting - SACE monitors, researches, evaluates and reports on the following Outputs and Outcomes: o Actual provisioning of fit-for-purpose and relevant continuing professional development by the approved providers on the ground; o Professional development uptake of the SACE-endorsed professional development activities and programmes by teachers, as provided by the approved providers; o Reporting of teachers’ professional development uptake, to SACE, by Approved providers; o Completion of the three-year CPTD cycle, by teachers, from their participation in the SACE-endorsed professional development programmes and activities – and implications for their professional status; o Effect and impact of professional development uptake on teachers’ enhanced professional competence, along with improved learning outcomes and school performance.
Output Indicators: Continuing Professional Teacher Development Management System • Number of professional development providers reporting type 3 activities and programmes of educators to SACE in a year - The SACE target is set at 20 providers.

• Number of educators supported on professional matters – The SACE target is set at 30 000 educators.

• Percentage of eligible professional development providers approved within 4 months of receipt of the applications - The SACE target is set at 90 percent.
• Percentage of endorsed professional development activities- The SACE target is set at 90 percent.

• Number of endorsed professional development sessions observed- The SACE target is set at 10 sessions observed.
34 48 3.1.6.5 Programme 5: Professional Teaching Standards – The purpose of the programme is to improve and maintain the status and image of the teaching profession and ensure the quality of initial teacher education and ongoing professional development through quality assurance mechanisms and standards.

Output Indicators: • Number of professional teaching standards promoted within the teacher education continuum in a year - The SACE target is set at four (4) professional teaching standards promoted.
• Number of teacher professionalisation interventions in the teacher education and development continuum - The SACE target is set at two (2) teacher professionalisation interventions.

3.1.6.6 Programme 6: Research – The purpose of the programme is to enhance research coordination within SACE in order to strengthen its advisory role and service that is informed by policy, research, and consultative processes.
This programme also aims to promote research on professional matters and any other educational matter relevant to SACE and the educational landscape.

• Focus Areas for 2023/24 Research o The formulation of the SACE Act makes it mandatory rather than optional for SACE to provide advice to the Minister.
o Thus, it is vital that Council participates in research that informs policies so that it is better positioned to advise the Minister when needed and, most importantly, research that will enhance and regulate the status of the teaching profession.

o The programme in 2023/24, will promote research on professional matters and any other educational matters relevant to SACE and the educational landscape.
o It will furthermore provide statistical reports to inform planning and decision- making as well as share statistics with the sector at large.

o 2023/24 SACE Research Agenda includes: ü Profiling of sexual misconduct perpetrators: cases from 2019-2022; ü Teacher supply and demand: focusing on areas of specialisation; and ü Corporal punishment cases: trends and analysis.
35 49 Output Indicators (Research Reports) • Number of research reports produced within a financial year - The SACE target is set at two (2) research reports produced.

• Number of statistical reports produced on the status of the teaching profession within a financial year - The SACE target is set at two (2) statistical report produced.
3.1.7 Portfolio Committee Observations and Questions • Members queried how the Council was able to contribute to the development and professionalisation of the ECD practitioners • How was SACE able to develop plans to improve the capacity to manage its case load.

• How did SACE use the teacher assessments to improve on training and development capacity.

• SACE also dealt with trends and analysis of corporal punishment cases.
Members queried the measures in place to reduce the number of cases involving corporal punishment infringements by educators.

Was SACE able to monitor and measures these cases.

• In respect of Foreign educators.

Members queried how SACE was able to do the necessary screening of educators in respect of their fitness to practice.

What processes were in place to ensure SACE was able to identify fraudulent qualifications.
How was SACE able to ensure all educators in the system were adequately qualified to teach.

• Members queried whether SACE has any unresolved disciplinary cases to report – how effective was the SACE investigators in addressing these cases.

• Members sought clarity on the accountability measures introduced in respect of the audit action plan – and what aspects of the recommendations were not implemented.

How would SACE ensure that all recommendations were implemented and achieved.
• What was the depth of processes to address and ensure fit-for-purpose educator assessment?

• Members queried the plans in place to ensure improvement in processing of cases.

• Members queried reasons for the Department not increasing the funding of SACE to build the necessary capacity to implement its programmes and plans.
• In respect of the Professional Development of Teachers Strategy, Members queried whether this was linked with Institutions of Higher Learning – as they were responsible for initial teacher qualification.

36 50 • With the percentage of professional development achieved, Members queried how SACE was able to measure the impact of such teacher development and whether there was implementation in the classroom.
Members also alluded to successful monitoring systems used in other provinces and queried whether SACE had considered a similar system.

• With unqualified/under-qualified teachers, Members queried whether SACE had any research on the numbers in the system – and whether there were programmes to assist such teachers to gain the necessary qualifications to teach the subjects they taught.

• Members also noted there were many closed cases reported and many not being categorised.
Members sought clarity on the matter.

Members queried whether SACE could consider categorising cases in the new financial year.

Categorisation of cases would assist with effective oversight.

• Members queried how SACE was able to monitor adherence to the professional code of conduct for teachers.

• What progress had been made in development of a monitoring tool for improved teacher professionalisation.
• Although the number of cases in respect of sexual misconduct had increased, it was noted that the number of teachers struck-off had decreased.

Members sought clarity on this phenomenon.

• Members also sought a breakdown of cases per province/district currently with SACE.

• Members note in the presentation the eight (8) focus areas but had no details on these focus areas.
• Members also queried the commitment from SACE to establish offices in the Northern Cape and why this was not done as yet as the commitment featured in the previous SACE APP 2022/23.

Members sought clarity on progress in this regard.

Members queried whether the general public had adequate access to SACE in all provinces.
• Members also queried how SACE ensured that educators were able to understand the current legislation they operated in as well as amendments to the BELA Bill [B2-2022] • Members noted that SACE also used the old NQF 2008 policies in the presentation and reminded SACE of updated/new NQF August 2019 Act.

• Members also queried whether it was the mandate of SACE to verify Foreign qualifications – was this not the responsibility of SAQA?
37 51 • It was noted that a large percentage of the SACE budget was used for administration purposes.

Members queried the core functions of SACE as well as priority achievements of the Council.

3.1.8 Responses from SACE - On the legislation mentioned in the presentation, there may have been an oversight in respect of the Acts as SACE used the latest education Acts and policies.

SACE may have mentioned those Acts SACE worked directly with – and those that were relevant to the work of SACE.
With ECD practitioners, SACE did the necessary registration of educators.

With the function shift of ECD to DBE, SACE worked directly with the relevant directorate within the Department.

SACE also formed part of the committee dealing with HRD strategy for development of ECD practitioners as well as the professional registration of the sector.

SACE also worked closely with educator unions and higher education institutions in this regard.

SACE received limited cases of misconduct in the ECDE sector space.
It was noted that the National Policy Framework was limiting CPTD systems in the schooling sector.

SACE monitored and assessed, relevance and fit-for-purpose training and development programmes provided by service providers.

SACE endorsed and approved service providers of training and development programmes but needed to monitor its outcomes and contributions to teacher training and development and its impact on learner outcomes.
SACE had a relationship with higher education institutions which included the credit-bearing qualifications offered.

SACE was mandated to check fitness to practice and teach, as well as to register teachers and regulate entry into the profession.

When SACE offered certification to teach it gave clearance that the person had been screened and that the qualification was regulated and deemed not fraudulent.

SACE also ensure graduates were provisionally registered with mandatory induction of such graduates.
SACE further clarified the issues pertaining to professional standards and the eight (8) areas of focus which formed the professional framework.

SACE agreed that the development of the policy framework be monitored and speeded up.

SACE also alluded to the general issue of ethical misconduct and there was a request that the Portfolio Committee arranged a workshop for SACE to present a detailed overview of the matters relating to misconduct cases and a review of all-encompassing code of conduct and ethics.
38 52 With supply and demand database, SACE had projects that were awaiting supply and demand processing.

There seemed to be a focus on the quantitative aspects of the research.

SACE needed to understand how it was able to contribute to existing research in respect of specialisation.

On the categorisation of cases, when these cases were received by SACE, there were predetermined categories for such cases.

SACE did have the necessary databases at provincial and district levels for schools.
On the Audit Report findings, SACE had dealt with most of the audit recommendations and made progress with the implementation of the recommendations to date.

With SACE spending and administration, it was mentioned that SACE was in a unique situation as it depended on educator levies received.

There was a need for much consultation with educators when SACE considered any increase in levies.

Thus, the percentage for administrative expenses was more than the percentage for operational expenditure.
Regarding the establishment of SACE offices in the Norther Cape, the Council had worked on the feasibility study for the offices and this was almost concluded – pending a discussion on possible review of levies.

Council had aligned the project to the review of funding and needed to ensure a guarantee of revenue before making any commitments.

SACE had integration of the system with the level of IT infrastructure efficiency.
This also included the integration of development of the latest requirements and legislation.

SACE also had an initiative with the Department to share educator information on identified platforms.

SACE had received CPTD funding but these funds were not always utilised fully.

The Department was working with SACE in respect of budgets to be adequately utilised for CPTD purposes.

SACE had its own challenges pertaining to fully utilising the CPTD budget allocation better.
SACE had its jurisdiction within the teaching profession and it was more difficult to address learner issues.

SACE did assist and support with learner matters as best they were able to.

Much of the learning environment for learners in the schooling system also reported to the 39 53 criminal justice system.

SACE dealt with all they could manage as far as their mandate allowed.

There was a need to also consider how the Children’s Courts could be better utilised.
SACE did advocate on issues of corporal punishment and the professional code of conduct and ethics of educators.
3.2 The Council for Quality Assurance in General and Further Education and Training (Umalusi) 3.2.1 Mandate - The mandate of Umalusi was determined by the following: • Chapter 2 of the Constitution: Everyone has a right to education; • National Qualifications Framework: The establishment of Umalusi as a Quality Council; and • GENFETQA Act: Assigns Umalusi the responsibility for quality assurance of general and further education and training.
Umalusi is the Quality Council responsible for qualifications registered on the General and Further Education and Training Qualifications Sub-framework (GFETQSF) on the National Qualifications Framework (NQF).

The Council ensures that the providers of education and training have the capacity to deliver and assess qualifications and learning programmes and are doing so to expected standards of quality.
3.2.2 Institutional Policies – These policies included the following: • The General and Further Education and Training Qualifications Sub-framework: 2014; • Guidelines on Strategy and Priorities for the NQF 2011/2012: Minister of Higher Education and Training; • National policies governing existing qualifications (including their assessment) that are currently certificated by Umalusi; • Standard setting and quality assurance of the General and Further Education and Training Qualifications Sub-framework: Umalusi, 2014; • Council policies and directives on the conduct, administration and management of the assessments for qualifications on the GFETQSF; 40 54 • The regulations pertaining to qualifications on the GFETQSF developed by the Department of Basic Education (DBE) and Gazetted by the Minister on assessment and certification, including those promulgated by provincial legislatures and the policy framework that applies to all technical and vocational education and training (TVET) colleges declared or established by the Minister under the Continuing Education and Training Act, Act No.
16 of 2006; • The Policy and Criteria for the development, registration and publication of qualifications for the GFETQSF; • The Policy for the Re-issue of National Certificates have passed all required approval stages; • The Recognition of Prior Learning (RPL) Policy; • Policy documents and guidelines pertaining to the National Senior Certificate (NSC), Senior Certificate (amended) (SC(a)), General Education and Training Certificate (GETC), National Certificate (Vocational) (NC(V)), National Education Report 190/191 (NATED) (N1-N3) and the national curriculum statements (NCS); and any other qualifications on the General and Further Education and Training Qualifications Sub-framework (GFETQSF), as applicable; • Treasury Regulations; and • Any other appropriate legislation related to the various education and training sectors in which Umalusi is mandated to work.
3.2.3 Strategic Priorities – These priorities included the following: • • reviewing the quality assurance approach; reviewing, evaluating and appraising qualifications submitted for registration on the GFETQSF; • providing input to the legislative framework; • intensifying research on educational developments linked to the sub- framework to innovate and to advise the appropriate Ministers of Education; and • intensifying advocacy to communicate accurate and relevant messages to all stakeholders on issues relating to qualifications on our sub-framework.
3.2.4 Strategic Focus (Performance Environment) 41 55 3.2.4.1 Review of the Quality Assurance approach - The instrument for external moderation of the GETC question papers has been reviewed.
The design appropriate for this qualification is at a conceptual stage 3.2.4.2 Demand for credible qualifications - Umalusi benchmarked the NSC against five other school leaving qualifications (the AS and A levels of the Cambridge International Examination (CIE: AS and A levels), the International Baccalaureate (IB: Diploma), Kenya (Senior Secondary), the New South Wales (Senior Secondary) and Zimbabwe (Senior Secondary).

The NSC has been found to be comparable to these qualifications.
3.2.4.3 Demand for Umalusi qualifications outside South Africa - Based on legal advice, 2022 was the last year that the NSC was offered outside the borders of South Africa.
The NATED programmes (N1–N3) will also be phased out in the neighbouring countries where they are offered 3.2.4.4 Use of communication platforms by stakeholders - The organisation uses MS teams for webinars, YouTube for short videos, Facebook Live for live- streaming, digital banners on Facebook, Twitter and LinkedIn & the GCIS radio facility connecting to all community Radio stations 3.2.4.5 Quality Assurance of Assessment - Trends in QAA activities, i.e.
the moderation of question papers, monitoring of the writing of examinations, monitoring of marking centres, and verification of marking for various subjects reflect an increase in the services provided 3.2.4.6 Qualifications, Certification, and Verification - Certification numbers dropped in 2019 and 2020 but have increased again in 2021.
Verification numbers dropped in 2020/21 due to the impact of COVID-19 but went back to normal in 2021/22 3.2.4.7 Evaluation and Accreditation - Institutions granted “a window period to improve” have reduced from 190 in 2019/20 to 10 in 2022/23 due to a drop in initial site visits 3.2.4.8 Evaluation and Appraisal of New Qualification - GEC qualification: Umalusi is still awaiting the resubmission of the GEC qualification policy for quality assurance processes to be done.
3.2.4.9 Empowerment of Women, Youth and People with Disabilities - Proposals for 2023/24 under four pillars: Accountability, Social Cohesion, Economic Empowerment, and Research and Information Management 42 56 3.2.4.10 Organisational Structure and Human Resource Capacity - The organogram has increased from 138 to 150 posts.

Though the vacancy rate has been maintained under 10%, there were up to 23 resignations by the end of quarter 3.
3.2.4.11 Facilities - The construction of Thuto-Mfundo building has been completed.

The building plans for the renovation of Umalusi House have been approved to address OHS deficiencies e.g.

accessibility to people with disabilities 3.2.4.12 Financial Resources - A third clean audit for 2021/22.
The increase in fuel prices and the high inflation rate exert financial pressure on the organisation’s budget (the cost drivers for the moderation of question papers, site visits and verification of marking are flights, car rental, and accommodation) 3.2.4.13 Information and Communication Technology - ICT Network health score maintained at 97%.

The implementation of Microsoft Azure cloud addresses the risk of the aging ICT infrastructure.
Umalusi has developed an online certification replacement system 3.2.4.14 Communication Management - Umalusi added a new external communication platform, Wikipedia 3.2.5 Measuring Performance 3.2.5.1 Programme 1: Administration – The purpose of the programme is to provide strategic leadership, management and administrative services to the organisation.
Sub-programmes include: • Strategy and Governance (S&G); • Public Relations and Communications (PR&COMS); • Information and Communication Technology (ICT); • Human Capital Management (HCM); and • Finance and Supply Chain Management (F&SCM).

Programme 1 Targets: 43 57 • Number of advocacy webinars conducted – The annual target is set at eight webinars (two per Quarter).

• ICT Network health score maintained at ≥97 percent - The annual target is at ≥97 percent.
• Average vacancy rate maintained at ≤ 10 percent - The annual target is set at ≤10 percent.

• Average number of days for payment of creditors and suppliers – The target is set at 30 days for payment.

3.2.5.2 Programme 2: Qualifications and Research - The purpose of the programme is to develop and manage an efficient and effective GFETQSF within the NQF and to undertake strategic research in support of that goal.
Sub-Programmes included the following: • Qualifications, Curriculum and Certification (QCC); and • Statistical Information and Research (SIR).

Programme 2 Targets: • Number of reports produced on the management of qualifications in the sub-framework – The target is set at one report produced annually.

• Number of reports produced on the certification of learner achievements for qualifications in the sub-framework – The target is set at four reports produced annually (one per quarter).
• Number of reports produced on the verification of qualifications (certificates) in the sub-framework - The target is set at four reports produced annually (one per quarter).

• Number of research reports completed in various formats – The target is set at six research reports annually.
3.2.5.3 Programme 3: Quality Assurance and Monitoring – The purpose of the programme is to ensure that the providers of education and training have the capacity to deliver and assess qualifications registered on the GFETQSF and are doing so to the expected standards and quality.

Sub-Programmes include the following: 44 58 • Quality Assurance of Assessment: School Qualifications; • Quality Assurance of Assessment: Post-School Qualifications; and • Evaluation and Accreditation.
Programme 3 Targets: • Number of quality assurance of assessment reports published for qualifications registered on the GFETQSF – The annual target is set at 9 assessment reports.

• Percentage of question papers approved per qualification – The target is set at 100 percent of question papers approved.

• Number of assessment bodies audited for their state of readiness to conduct examinations – The annual target is set at four assessment bodies audited.
• Number of subjects for which verification of marking is conducted- The target is set at 92 subjects.

• Number of subjects for which moderation of internal assessment is conducted – The annual target is set at 195 subjects.

• Percentage of accreditation outcomes for private education institutions finalised within 12 months of the site visit – The target is set at 87 percent of accreditation outcomes.
• Percentage of identified private education institutions monitored after being granted accreditation – The target is set at 90 percent of identified institutions.
3.2.6 Priorities – Priorities for 2023/24 include: • Reviewing the quality assurance approach; • Evaluate and appraise new and reviewed qualifications; • Providing input to the legislative framework; • Intensifying research on educational developments linked to the sub-framework to innovate and to advise the appropriate ministers of education; and • Intensifying advocacy to communicate accurate and relevant messages to all stakeholders on issues relating to qualifications on our sub-framework.
45 59 3.2.7 Indicator Changes – Indicator changes for 2023/24 included the following: • Advocacy initiatives; • Average number of days for payment of service providers; • Number of reports produced on certification; and • Number of reports produced on verification of qualifications 3.2.8 Focus Areas – Focus areas for 2023/24 included the following: • GFETQSF policies & associate policies; • Offering foreign qualifications e.g.
IE; • Registering the GEC qualification; • Research on NASCA, GETCA & GEC; • Appraisal of curricula; • QAA processes in the centralised GETC: ABET exams; • Strengthening internal assessment; and • Implementing revised application process for private colleges.
3.2.9 Targets that have Changed – Targets that have changes included: • Number of advocacy webinars (8); • Number of research reports completed in various formats (6); • Number of subjects for which verification of marking is conducted (92); • Number of subjects for which moderation of internal assessment is conducted (195); and • Percentage of accreditation outcomes finalised within 12 months of a site visit (87 percent).
3.2.10 Budget Presentation (2022/24 – 2025/26) 3.2.10.1 Financial Year 2022/23 - The original approved budget amounted to R187,7 million.

This budget consists of a DBE R162 million (86%) grant and R25 million (14%) own revenue.

As of 28 February 2023, the DBE grant was received in total, and R30 million of own income.

Umalusi will therefore exceed its annual revenue budget.
The infrastructure project commenced during the previous financial year, 2021/22, with most of the work performed during the 2022/23 financial year.

The total expenditure on this project amounts to R39,5 million, representing 89% of the total contract value, and the final account is still outstanding.

The practical completion certificate has been received, and the facility is being 46 60 used.
The internal financial year-end (2022/23) process has started to ensure the financial year can be closed successfully and reporting requirements can be achieved.

The total budget for 2023/24 amounts to R 197 Million.

The Department of Basic Education (DBE) grant allocation was R 162.9 Million, an increase of 0.56 percent.

Own revenue stood at R 34.5 Million, an increase of 9.54 percent.
The following were the primary revenue contributors: • Verification - Is the process followed by Umalusi to establish the authenticity of qualifications or certificates.

Over the past six years, 250,593 verifications were done annually on average.

• Accreditation - Umalusi accredit private education institutions to ensure compliance with Section 29(3)(c) of the South African Constitution to ensure that independent educational institutions maintain standards.
(Independent schools, private FET colleges and private AET colleges) • Certification - Is the process followed by Umalusi to issue certificates to candidates who have successfully complied with the requirements for a qualification.

Over the past six years, 1,124,767 certificates were issued annually on average.
• Quality Assurance of Assessment - Charges from Independent Examinations Board (IEB) and the South African Comprehensive Assessment Institute (SACAI) • Interest received - Investment of available funds 3.2.10.2 Total Revenue Description DBE Allocation Verification Accreditation Certification Quality Assurance Interest Rent 2021/22 R’000 2022/23 R’000 2023/24 R’000 2024/25 R’000 2025/26 R’000 R157,400 R11,934 R5,195 R5,695 R2,534 R2,403 R1,023 162,031 R12,452 R4,139 R2,049 R4,696 R1,269 R1,087 R162,945 R169,365 R176,953 R13,249 R10,796 R2,776 R3,782 R2,068 R1,812 R14,097 R11,120 R2,954 R4,024 R2,212 R1,921 R15,061 R11,824 R3,205 R4,343 R2,368 R2,220 Total Revenue R186,184 R187,723 R197,428 R205,693 R215,974 3.2.10.3 Expenditure 47 61 Financial Year 2021/22 2022/23 2023/24 2024/25 2025/26 Compensation R'000 R85 506 R92 599 R99 367 R103 527 R108 703 Compensation % of Total Budget 48% 48% 50% 50% 50% Goods & Services + Other R'000 R93 795 R100 578 R98 061 R102 166 R107 271 Goods & Sertvices + Other % of Total 52% 52% 50% 50% 50% Total Budget R'000 R179 301 R193 177 R197 428 R205 693 R215 974 3.2.10.4 Comments on the 2023/24 Budget • Compensation of Employees (CoE) aligns with the Department of Public Service and Administration (DPSA).
The Umalusi Council has approved twelve additional posts for filling during the 2023/24 year to relieve some of the work pressure.

• 59% of the total expenditure is allocated to the national operations (programmes 2 and 3) of Umalusi, whereas the administration takes 41% of the total budget.
o Programme 1 = 41% - R80,050 million (CoE) = R44,4 million, Other = R35,6 million) o Programme 2 = 17% - R32,853 million (CoE) = R21,7 million, Other = R11,1 million) o Programme 3 = 43% - R84,525 million (CoE) = R33,1 million, Other = R51,4 million) • Goods and services are expected to remain mainly the same because some processes will continue to be performed online as a cost-saving and efficiency measure.
o National operations utilise 64% of the budget - A large portion of this funding relates to contract and seasonal workers’ remuneration o Administration utilises the remaining 36 % of the budget for activities such as: ü External Audit ü Outsourced Internal Audit ü Building maintenance ü Operational expenditures such as diesel for generators, municipal accounts, copiers etc.

3.2.11 Portfolio Committee Observations and Questions o The important contribution of the Entities could not go unnoticed.
Members raised the ongoing challenges faced by Umalusi and DBE in respect of examination leakages and queried what the attributing factors could be and how was this being arrested.

48 62 o Regarding the Umalusi research undertaken, Members queried whether there had been additions to the APP from the research findings in key areas of work.
o Regarding the development of the General Education and Training Certificate, Members queried the measures in place to ensure adequate quality assurance of the qualification.

Did Umalusi have the necessary capacity for this additional responsibility?

o Members also queried the capacity and resources to quality assure the ECD practitioners and care-givers who may not have the necessary qualification.

o Members queried whether Umalusi had been able to fill all vacancies in the organisation.
o Members also queried the findings and recommendations to strengthen quality education within the current financial year.

o With the anticipated budget cuts coupled with an increased mandate, Members queried how this affected the functions of Umalusi.

How realistic was the Umalusi targets and indicators?

o Members noted that some of the indicators and targets had been changes e.g.

payment of service providers within 30 as well as the percentage of errors in printing certificates.
Members queried reasons for the change and also whether service providers were being paid outside of the stipulated timeframe.

o On advocacy, Members queried the main areas of advocacy work of Umalusi – and how did they go about educating the general public on the quality of the Matric Certificate.

How did Umalusi address continued attacks on the quality of the NSC Examination and certification.

It was also noted that many did not know about of the existence of Umalusi.
o Members also queried reasons for the NSC no longer being taken-up abroad.

o On assessment methods, Members queried the understanding of Umalusi in respect of the various assessment methods used at the exit points in other countries.

Had Umalusi done any research on various assessment methods to be used.

o Regarding the General Education and Training Certificate, Members queried the timelines for the Department to resubmit the policy on the new qualification.
49 63 o Members also queried whether Umalusi also quality assured and regulate the private, online and blended learning schooling programmes.

o With the budget constraints on Umalusi, Members queried whether this did not manifest in work-overload for Umalusi staff.

How was Umalusi addressing this challenge.

3.2.12 Responses from Umalusi – With matters related to the examination leakages, it was mentioned that this phenomenon was informed purely by a criminal element in the system.
In 2022 there were no leakages and the Department was able to arrest the problem adequately.

However, there had been further irregularities in the last examination but these were not too serious.

Umalusi had shared the Benchmarking Report with the Portfolio Committee in the recent past and the benefit derived from the report was that Umalusi was able to defend the currency of the NSC examination and certification.

Members of the public were able to gain confidence in the qualification.
Umalusi was in the process of further analysing the Report and its recommendations and provide the Department with research recommendations.

In respect of the General Education and Training Certificate, Umalusi had reported its recommendations to the Department to strengthen the qualification.

Umalusi was awaiting the re-submitted qualification from the Department for considerations.

If satisfied, Umalusi would submit the qualification for registration with SAQA.
The nature and limitations of the GEC was the exclusion of certain subjects for assessment.

Umalusi did have the capacity to quality assure the GEC but lacked the necessary resources due to an increase in the mandate of Umalusi – there had been no increase in the budget to Umalusi while the mandate increased.

The policy was also silent on the subjects offered at Schools of Skills for the GEC that needed to be addressed.
Further to this, Umalusi also battled with limited resources and budget for the ECD practitioners Recognition of Prior Learning (RPL).

With regards to Umalusi vacancies, it was mentioned that this remained a moving target as staff resigned periodically – even when posts were filled.

Umalusi did the necessary processes for advertising and filling of posts as per protocols.

The Council had also approved 12 new posts to be filled and Umalusi was starting early with recruitment and appointment.
50 64 As applicable to matters related to assessment bodies, Umalusi also issued quality assurance reports on areas of non-compliance for improvements.

Assessment bodies also submitted their reports to Umalusi who conducted the necessary monitoring.

With the reduced budget of Umalusi, this undermined the mandate of Umalusi.

Staff were overworked and overloaded and many resigned due to burn-out.

This also led to a loss of institutional memory.


However, Umalusi indicated that targets were realistic and achievable with the current budget.

There was much misinformation regarding the quality assurance of the NSC and Umalusi did the necessary advocacy to educate the general public on the mandate of Umalusi.

With homeschooling, Umalusi raised the challenge that students could be found wanting.

Umalusi needed to do more work in this area.


With the NSC being offered outside the borders of South Africa, the challenge remained the laws, jurisdiction and sovereignty of the country – as there may be unintended consequences of the NSC offered in other countries.

In respect of the assessment approaches cited from other countries, it was mentioned that such countries (UK, New South Wales, Kenya, and Zimbabwe) had many similarities with Umalusi assessment methods.
In respect of online-schooling, the matter was being discussed and addressed and Umalusi had made representation in this regard.

Umalusi did much advocacy work but was not able to reach everybody and focussed on engagement with Universities Education Faculties, Provincial Legislature and SGB Association.

Umalusi continued with expansion of its advocacy pool and establish ambassadors.

Umalusi also utilised webinars to reach more stakeholders and reach as many as possible.
It was also mentioned that targets for verification and certification also formed part of Umalusi reporting as well as reporting on misrepresented qualifications to SAQA.

Umalusi also explained the rationale for the changing of some of the indicators and targets, specifically in respect of payment of service providers in stipulated timeframes.
It was reported that with the changes, there had been significant improvement in the turnaround time for paying service providers through the strengthening of controls.

Improved turn- around time for payment of service providers also allowed for value for money.
51 65 4 Portfolio Committee Recommendations: The Portfolio Committee on Basic Education, having considered Budget Vote 16: Basic Education, together with the Annual Performance Plan of the Department of Basic Education recommends that the Minister of Basic Education ensure the following: 4.1 Department of Basic Education (DBE) • The Department should ensure that it is able to consider adequate research to be conducted on many aspects of the various DBE programmes and targets of the Department.
• The Department is urged to strengthen submission of regular reports on the NSNP to the Portfolio Committee and ensure proper monitoring and oversight of the NSNP.

• Ensure all Members questions and queries to the Department received the necessary attention and responses within 30 days after adoption of this report • The Department should consider the possibility of paying stipends to SGB members.

• Ensure that all Funza Lushaka and all other graduates are adequately placed in schools.
• The Department must ensure that issues of school infrastructure, water and sanitation are addressed to supply schools with adequate, safe ablution facilities and water reticulation as a matter of urgency.

The Department should present a progress report to Parliament during the 2023/24 first quarterly reporting.
• Challenges with scholar transport for learners ought to be addressed – and the policy must be reviewed and ensure that the function is fully aligned with DBE by end of the 2023/24 financial year.

• The DBE must ensure there is adequate funding and is ready for compulsory Grade R implementation.

• The Department must closely monitor ECD challenges in respect of registration of the bulk of ECD Centres, including independent ECD Centres within 30 days of adoption of this report.
• Ensure that budgets utilised for infrastructure projects are better spent and infrastructure backlog delays are limited.

• The Department needs to address, eradicate, and replace any unsafe toilets utilised in schools.

• The Department must also fast-track the eradication of pit-toilets still used in schools, and consider the possibility of Mobile toilets as a temporary measure while the eradication 52 66 process is in progress.
A report outlining plan of action for eradication of pit latrines should be submitted to the Committee within 90 days of adoption of this report • Prioritize to put programmes and plans in place to adequately track, trace and retain learners who may have dropped-out of the system.

• Ensure programmes and plans are in place to better address the current teacher workload and alleviate the workload on teachers.

• The Department should consider the possibility of piloting continuous assessments in future.
• The Department needs to address the challenges with shortages of libraries in schools, where possible consider piloting usage of mobile libraries as a temporary measure before the end of 2023/24 financial year.

• The Department should ensure the standardization and development of indigenous languages.
• The Department must follow up on issues pertaining to learner-drop-outs (scientific data, statistics and information including mitigating factors) and be allowed to present such issues to the Portfolio Committee • The Department needs to address issues pertaining to school overcrowding, especially in rural and township schools before the end of 4th term 2023.
4.2 South African Council for Educators (SACE) • Ensure that SACE is adequately capacitated, resourced to improve the development and professionalisation of educators as well as address its case load.

• Improve utilization of resources to ensure that SACE is able to build the necessary capacity to implement its programmes and plans.
• Closely monitor, and put measures in place to reduce the number of cases involving corporal punishment infringements by educators within 60 days of adoption of this report • Ensure all unresolved disciplinary cases receive the necessary attention and effective investigation to conclude them within 90 days of adoption of this report • Put in place monitoring and accountability measures in respect of the audit action plan to ensure all aspects of the recommendations are implemented within 90 days of the adoption of this report .
• Ensure that systems are in place towards improvement in processing of cases within 60 days of adoption of this report 53 67 • Members recommended that SACE should able to research the number of unqualified/under-qualified teachers in the system and ensure that there are programmes/initiatives to assist such teachers to gain the necessary qualifications to teach the subjects they taught • Categorize all cases reported to SACE to assist with proper oversight within 40 days of adoption of this report • SACE must consider development of a monitoring tool for improved teacher professionalisation within 60 days of adoption of this report • Based on the previous commitment, ensure that an office in Northern Cape is established and resourced before end of 2023/24 financial year to ensure that educators in the province have adequate access to SACE • The Annual Performance Plan 2023/24 is revised and re-submitted to the Portfolio Committee 4.3 Council for Quality Assurance in General and Further Education and Training (Umalusi) • The Council must ensure that systems are improved so that examination leakages are curbed.
• The Council should ensure that a report is presented to the Portfolio Committee outlining steps taken by the Council to prevent leakage of the examination question papers.

Such a report must be submitted two months’ prior the examination proceeds.

• Umalusi should be considered for additional funding, capacity and resources for the additional responsibilities in respect of its extended/increased mandate.

• Ensure all vacancies within the Umalusi organogram are filled as soon as possible.
• Ensure Umalusi advocacy programmes are improved and geared to educating the general public on the work of the Council and the quality of the NSC Examination and Certification.

• In collaboration with the Department, consider conducting research on the alternate methods of assessment at exit points in the system.

• Ensure the General Education and Training Certificate policy and framework for the new qualification is concluded and is ready for implementation by 2024/25.
54 68 5 Conclusion Having satisfied itself in its engagement with the Department of Basic Education and Statutory Bodies on their Annual Performance Plan and the Budget, the Portfolio Committee on Basic Education recommends that Budget Vote 16: Basic Education be adopted and that the House approves Budget Vote 16: Basic Education.

The Democratic Alliance (DA) reserved their rights in support of the Portfolio Committee Report on budget Vote 16: Basic Education.

Report to be considered.

55 69 3.


REPORT OF THE PORTFOLIO COMMITTEE ON HOME AFFAIRS ON BUDGET VOTE 5 AND ANNUAL PERFORMANCE PLANS OF THE DEPARTMENT OF HOME AFFAIRS AND ENTITIES, DATED 2 MAY 2023.

The Portfolio Committee on Home Affairs, having considered the budgets and APPs of the DHA and entities reports as follows 1.

Introduction.

The Portfolio Committee on Home Affairs (the Committee) met on Budget Vote 5 on 28 February and held a Strategic Planning Session on 29 and 31 March 2023.
On 30 March 2023, the Committee conducted an oversight visit to the Department of Home Affairs Head Office Permitting Unit and the new Menlyn Shopping Mall Office.

In the Budget Committee meeting, it was briefed on the budget allocations for the Department of Home Affairs (DHA), the Border Management Authority (BMA), the Government Printing Works (GPW) and the Electoral Commission (IEC) for the 2023/24 financial year.
In the Strategic Planning Session on 29 March 2023, the Committee again invited the DHA, BMA, GPW and IEC to present their Annual Performance Plans for the 2023-2024 financial years, progress on their 2019 to 24 strategic targets, the operationalisation of the BMA and IEC preparations for the National and Provincial Elections in 2024 as well the on electronic voting systems.
On 30 March 2023, the Committee conducted an oversight visit to the Department’s Head Office and the newly opened Menlyn Shopping Mall Office.

The purpose of the visit to the Head Office was to interact with staff that were adjudicating Temporary Residency Visa (TRV) and Permanent Residency Permits (PRP).

The DHA and media had previously reported that there was a backlog in the processing of these applications due to the Covid-19 pandemic as well as a funded project to address it.

2.
2.

BUDGET VOTE 5 2.1 Opening and Welcome.

The Chairperson officially opened the meeting and indicated that the Department of Home Affairs (DHA), the Electoral Commission (IEC), the Border Management Authority (BMA) and the Government Printing Works (GPW) would brief the Committee on their budget allocations for 2023- 24 financial year.

70 2.2 .
70 2.2 .

Briefing by the DHA, BMA, GPW and IEC on their 2023-24 budget allocations DHA DHA Chief Financial Officer, Mr Gordon Hollamby, presented the budget indicating that the expenditure from the past 8/9 years had been at 100% of its allocation.

There is capacity to spend and since 2013-14 no unauthorised expenditure has been incurred.

In the current financial year, as of January 2023, the overall spending is at 74 percent, this is slightly under the projections for the current financial year.
This underspending projection is due to the late receipt of funds for the digitization project.

Alongside the passenger name recognition project that has not progressed, leaving an amount of R200 million that has not been used.

The compensation of employees (CoE) remains the biggest cost driver, sitting at 36 percent.

The ceiling for CoE is capped at R3.9 billion.


As of January 2023, CoE is at 75% of its target, this places the Department in a less pressurised position – allowing the offices of the Department to open later and pay overtime including for the festive deployment periods.

Allocations for the 2023/24 budget are increased and are expected to drop in 2024/25.

This is due to specific baseline reductions and baseline increases of about R1 billion.
This is largely in programme 4: Institutional Support and Transfers for BMA and IEC.

Self-financing is a mechanism that allows the Department to retain some of the generated revenue, and use it for the purpose defined by the National Treasury.

The Department uses these funds for the costs incurred for the generation of this revenue, these include but are not limited to cash-in-transit activities, hospital connectivity, property look and feel, financial accounting, and archives management.
The overall self-financing allocation is R987 million and this will be used for expenses incurred should Treasury allow the Department to do so.

Mr Hollamby reported that for the 2023-24 financial year, the DHA’s allocations were R10.863 billion for the four DHA programmes as follows: • Programme 1: Administration – R2.719 billion.

• Programme 2: Citizen Affairs – R3.361 billion.

• Programme 3: Immigration Affairs – R858.59 million.
• Programme 4: Institutional Support and transfers – R3.924 billion (BMA: R1.342 billion and IEC: R2.232 billion).

• BMA Dr Mike Masiapato, the BMA Commissioner made the presentation and he indicated the BMA was still to be established by 1 April 2023 as a separate entity from the DHA.

The staff consultation has 2 71 been conducted in preparation for 1 April 2023.
He also reported that the Audit and Risk Committee with four members and the Remuneration and Human Capital Committee with three members have been established and were appointed by the Minister for three years with effect from 1 February 2023.

He indicated that the budget for 2022-23 was R78 million and the BMA has already spent about R47 million which translates to 60 percent.

There was a commitment of R13 million for February and March 2023.
An estimated amount of R18 million would be unspent from the COE.

The transfer of staff and functions from the Departments of Home Affairs; Health; Agriculture, Land Reform and Rural Development and Forestry, Fisheries and Environment would contribute about R1 billion to the BMA budget.

The initial budget request by BMA for 2023-24 was R2.686 billion and over the MTEF period the budget was R10.6 billion.

Because of budget pressures, the BMA would outsource most of its corporate functions to DHA.
IEC IEC Chief Electoral Officer, Mr Sy Mamabolo, indicated that based on the 2024 Election, the 2023/24 financial year budget is R2.2 billion housed in four programmes bearing 14 outputs.
The IEC budget will provide for: - two registration weekends - one in 2023 and the other in 2024 - revisions to electoral information communication technology - voter registration - launch of communication campaigns - staff expansion programme - an incremental capacity increase of the institution - recruitment and training of 50 000 registration staff for the upcoming registration weekends - expansion of the local delivery model and local storage sites - identification and contracting of registration stations - maintenance of the network of offices countrywide.
Taking note of the recently passed Electoral Amendment Bill, the IEC is looking to accommodate the operational and financial implications of this.

This includes the re-writing of ICT business applications, particularly the candidate nomination system to take account of independent candidates and signature requirements; the logistics information system; and the results system.
The IEC has some funding pressures, particularly in: (i) workshops and training, 3 72 (ii) the projected increase of ballot papers by about 50% to accommodate the regional ballot, (iii) the expected increase in the number of contestants resulting in longer ballots and possible reconfiguration of ballot papers, (iv) a public education programme of the revised electoral system and (v) workshops for new electoral contestants.
IEC Chief Financial Officer, Ms Dawn Mbatha, said the IEC has had to absorb cuts of about R240 million in the current year.

The estimated budget for 2023/24 is R2.2 billion.

Importantly, National Treasury has provisionally approved the retention of any 2022/23 budget allocation surpluses to assist with funding pressures.

The IEC programme financial breakdown is: - The administration programme accounts for R820 million which includes CoE.
- Electoral Operations is the core programme accounting for R1.2 billion.

- The Outreach programme is R258 million.

- The Party Funding and Liaison programme is R25 million.

- The recruitment of staff in the Political Parties Funding Unit has been slowed down for the IEC to get a more realistic sense of the volume and intensity of work in this unit.
GPW Ms Alina Fosi, the Chief Executive Officer; Ms Constance Shibambo, Director: Internal Audit and Mr Ian Van Der Merwe, Chief Financial Officer made the presentation.

In her presentation, Ms Fosi indicated some projects were implemented at GPW.

Some of these projects are as follows: • The development of change management and GTAC has been appointed.

• Modernisatiion of GPW.

• Business continuity after the loss of data.

• The implementation of Ministerial Review Panel Report Recommendations.
• The Security Printing Bill.

• The appointment of the Ministerial Advisory Board.

• A case study to establish a polycarbonate printing assembly.

• Critical infrastructure projects.

The newly approved organisational structure was implemented on 1 April 2022.

It was reported that 417 new positions were added to the new structure and 74 positions have been reassigned.

4 73 Ms Mbambo indicated that GPW was addressing the audit findings.
There were 595 findings and 77 percent of these findings have been resolved.

Mr Van Der Merwe indicated that GPW revenue was forecasted to increase at an average annual rate of 16 percent from R1.426 billion in 2022/23 to 1.654 billion in 2023/24.

GPW was set to generate R5.51 billion in revenue over the medium term through business operations.

Expenditure was forecasted to increase at an average annual rate of 15.54% from R1.288 billion in 2022/23 to R1.488 billion in 2023/24.
The total estimated expenditure over the medium term will be R4.960 billion.

2.3 Budget Deliberations In relation to the budget presentations, the members of the Committee raised the following concerns and questions: DHA 2.3.1.

What is the plan for the DHA to fill the unfunded vacancies?

2.3.2.

Has the budget of the DHA taken into consideration load shedding in its offices and has provision been made for generators and alternative power?

2.3.3.
2.3.3.

What are the key project milestones to ensure the R839 million digitisation project is completed on time?

And how will the process be accelerated given its late start?

2.3.4.

The Committee received a report on 12 July 2022 on the review of permits issued since 2014.

The report indicates serious problems such as widespread fraud and fake users created on DHA systems, identity theft and staff operating visa fraud syndicates.
An information technology project is critical to address the gaps that permit fraud syndicates to operate in DHA - is there such a project?

2.3.5.

What are the remaining goods and services to be procured for the Who Am I project for 2023?

2.3.6.

What is DHA's intention with interns after serving on the digitisation project as it is set to be completed in one year?

BMA 2.3.7.
BMA 2.3.7.

What is the current budget shortfall for BMA for full implementation, what functions are not funded and what will be done to address this?

2.3.8.

It is undeniable that South Africa has porous borders, the new officials – boots on the ground – that will be deployed by BMA seem to be positioned at the border posts and not along the borders to stop persons illegally coming into the country.

What is the financial outlook for neglected internal enforcement in the medium term?

2.3.9.
2.3.9.

The Committee was concerned that there was a decrease in the funding of the Immigration Services programme and the BMA.

The funding of the BMA will affect its operations.

5 74 2.3.10.

There was concern with regard to the intentions for integration between SAPS and the Border Guards.

IEC 2.3.11.

The Committee wanted to ascertain if and when electronic voting would be piloted and what finances were being planned for it.

2.3.12.
2.3.12.

Have there been any donations to the Multi-Party Democracy Fund, if so how much?

How is the IEC planning to distribute these donations, considering the 2024 independent candidates?

2.3.13.

On financial investments for the communication campaign -– while it is important to ensure the youth and as many people are registered to vote.

What is the targeted number of voters it should be increasing from the current 26 million registered voters.

2.3.14.
2.3.14.

Will the IEC be in a position to implement the Electoral Amendment Bill to include independent candidates in the National and Provincial Elections with a decreased budget?

2.3.15.

The Committee has continually raised concerns about voter education to which the IEC would respond that not much could be done due to budgetary constraints.
Can the IEC and the Committee not ensure there is sufficient allocation given the upcoming election and Amended Electoral Amendment Act; extensive voter education is crucial.

2.3.16.

How long are the 7 000 additionally recruited staff for the elections to be employed by IEC as they seem to be budgeted for both 2022/23 and 2023/24?

GPW 2.3.17.

There should be a turnaround time on the implementation of the Ministerial Review Panel Report Recommendations.

2.3.18.
2.3.18.

On plans for GPW to have an imprint in other countries, what sort of revenue has been received from those initiatives?

What marketing plans are there to ensure the success of this African initiative?

Is there a budget allocation for marketing?

2.3.19.

Previously GPW had challenges in ensuring audits are timeously conducted so what is being done to ensure this is improved?

2.3.20.

GPW is still owed payments for services rendered to government departments and entities.

2.3.21.
2.3.21.

With regard to data loss, how much, if any, has been recovered?

2.3.22.

On consultation on the Security Printing Bill, GPW should also consult with the private sector.

2.4.

Responses by the DHA, BMA, IEC and GPW DHA 2.4.1.

The decrease in the DHA Immigration branch budget is due to the functional shift of Immigration to the BMA.

All immigration officials at the ports of entry will move to BMA with 6 75 their salaries.
Therefore for the 2024/25 financial year, these remuneration budgets will move to BMA, because of the functional shift.

2.4.2.

In the DHA Immigration branch budget, there are funds of about R450 million for goods/services and these will assist the Home Affairs team with deportation.

2.4.3.

The Committee had suggested Home Affairs work on a business case due to understaffing as the DHA staffing level was sitting at about 36%.
National Treasury had approved funds of R260 million which enabled DHA to fill about 762 vacant positions with a focus on services which placed it at a 42% staffing level.

The Department is further looking at increasing the capacity to at least 55%.

Whilst this is far below acceptable measures, DHA is looking at improving the staffing levels.

2.4.4.

The budget will not be impacted by mobile trucks as the mobile footprint is being increased.
The DHA is anticipating the receipt of 20 more trucks by the end of February 2023.

Moreover, on the recommendation of the Committee, DHA is going to order 100 more trucks to be deployed and service the more rural areas.

2.4.5.

The digitisation programme is set to continue for the next two years due to the late receipt of funds, therefore the interns will still be in the digitisation project.

The digitisation programme is under consideration, with expected full running in March and April.
More graduates are expected to be employed in this.

The key milestones of the project will be indicated quarterly.

The minimum set of records should be demonstrable at the end of March 2023.

On the anticipated unspent money for the digitisation project, due to late receipt of the funding allocation, DHA has engaged National Treasury for a rollover, of which the Treasury has been supportive.

2.4.6.
2.4.6.

The Passenger Name Recognition (PNR) is allocated about R228 million, the system is a sub- component of the Advanced Processing System.

This system allows DHA to tell you when a person books a ticket to South Africa which establishment they will be staying at, track the banking system of the traveller, and how the traveller intends to leave South Africa.
Unfortunately, this system is provided by a sole supplier – a Swiss-based company – and National Treasury declined the application to engage and appoint this service provider for the PNR.

The Department was advised to go on an open tender, and the process has been started.

As a result, DHA will be unable to spend the R228 million in this current financial year, National Treasury has been requested to un-earmark the funds.

2.4.7.
2.4.7.

Home Affairs Deputy Minister, Njabulo Nzuza, stated that the DHA human resources issue will be reported on and emailed to the Committee.

2.4.8.

Overall DHA has managed prudent financial systems in the past and there has been consistent performance.

The aim now is to improve and receive a clean audit.

Efforts to lobby for funding 7 76 for the BMA will continue as this has been continually committed to by the Portfolio Committee that funding for the security cluster needs to be improved.
Border Management Authority response 2.4.9.

The BMA operates in two distinct areas: (i) the port of entry, which is inside the port, and (ii) the law enforcement area, which is outside the port.

Outside the port is legally defined as 10 kilometres, going sideways at the borderline, and 10 kilometres inside South Africa.

The other specialised area which is part of law enforcement is the vulnerable segment on the borderline.
This refers to areas where there are border communities, these are areas where the borderline competes with civilian activities in that area.

These areas have at times what is called the foot and mouth fence, which deals with animal movement.

The BMA will be taking over this work from the DHA of Agriculture.

2.4.10.

Understanding the above, issues about the South African Police Services (SAPS); the BMA Act indicates that border law enforcement work will be done by BMA officials.
The intention was to ensure there is no confusion about duties.

Whilst this work is currently being done by the SAPS, when the BMA Act comes into effect it will be done by the Border Management Authority.

2.4.11.

The initial intention of BMA was to ensure officers deployed at the port environment by SAPS are controlled by BMA and those officials are integrated into the BMA.
It quickly became clear this would not succeed as the funds allocated for border control will have to be transferred to the BMA, Treasury did not allow this.

This meant BMA will not have the capacity to do all the work.

Although the BMA will be doing some aspect of the work based on the current 200 border guards and 400 that will be brought on in the coming financial year.

As it stands the SAPS is utilising 6,000 officials across all ports in the country.
Compared to the 600 officials that the BMA will have, this meant the BMA cannot fully take on the function.

The SAPS will continue this work and BMA will gradually take responsibility when their border guards increase.

There are still ongoing discussions with the relevant Ministers regarding the matter.

2.4.12.
2.4.12.

The BMA is looking at utilising drone technologies to complement the boots on the ground, unfortunately, with the allocation of only R250 million, BMA will not be able to deploy this at this stage.

In the interim, the BMA will try and tap into the drone technologies that the South African National Defence Force had indicated they intend to use for border management during the 2023 Budget Speech, with the hopes that the BMA will be granted additional resources.

2.4.13.
2.4.13.

Presently the BMA will cover all the main ports, which include land ports, sea, and airports.

In terms of the line, only landline ports will be covered, and no sea port line covering.

BMA has not put effort into the sea line ports, let alone budgetary consideration.

The bringing in of the 8 77 coastline guards will be the second phase of the BMA plans.

In summary, the shortfall is R10bn over five years.

For the current year, BMA asked for R2.6bn but got R250m.
Government Printing Works response 2.4.14.

To date, GPW has started printing for all spheres of government.

In identifying revenue- generating clients, progress has been made.

A multi-faceted approach has been adopted for the revenue quantum for the expansion plan.

Since the advent of Covid-19, there have been numerous online engagements with SADC countries and the greater African continent to ensure the marketing of GPW products.
This has yielded some results, as these countries have come on official visits to view GPW services, intending to return for business.

Central to this strategy have been efforts to engage embassies and high commissions in Pretoria to ensure there is wider engagement, without having to spend much on travelling costs.

2.4.15.

Regarding the data loss, several companies have been engaged for data recovery and no costs have been incurred.
To date, there are no costs budgeted for data recovery, as systems are being recreated and there are efforts to re-automate the previously crashed system.

2.4.16.

On an economic impact assessment for potential business losses by the private sector, it is important to note that GPW is part of Printing SA.
Printing SA is a coordinating body for all printing, publication and manufacturing sectors within the country, therefore the GPW model has never competed with the private sector; it supports small, micro, and macro enterprises.

SMMEs have been granted business by being contracted to print certain products on behalf of GPW, to ensure their development and sustainability.

IEC response 2.4.17.


Voter education plans have a combination of integrated activities, the target is the young electorate of the country – particularly first-time voters.

Given the new electoral system, every electoral member becomes a target for voter education and the communication campaign.

One of these integrated activities is the community approach – the capacity is being put on the pool of staff members that will be at municipal duty stations.
The hope is that communities are reached broadly within communities, this will be at a voting district level.

2.4.18.

The second focal activity deals with vulnerable groups, particularly persons living with disabilities, where there will be similar community engagements with these groups for voter education and information.

2.4.19.
2.4.19.

Radio-based engagements for voter information and engagement will continue, using community-based radio stations as the medium has still been found to be relevant and effective.

Digital media is a new medium and the IEC will be making use of these.

The key areas include information sharing through animation, chatbots, and conferencing facilities to create dialogue for participants to engage with the IEC content.
The partnership with the South African 9 78 Broadcasting Corporation does include radio and television where educational material will be shared, extending to all SABC channels.

2.4.20.

The IEC also has a focused school curriculum where civic education and duty are encouraged, coupled with the annual campaign in April which is voter education month.

The context of voter education in South Africa is still about why people should participate and vote.
This is a question that needs to be answered in dialogue and interactions.

The electorate needs to have a purpose in participating and to understand their responsibility in participating in the electoral democracy.

2.4.21.

The IEC can execute all four programmes depending on the National Treasury approval of the anticipated rollover.

The Electoral Amendment Bill was also factored into the budget allocation process.

2.4.22.
2.4.22.

The electoral process is becoming an expensive exercise as there is the amendments in the Electoral Amendment Bill to consider; enhancements to technology; and efforts in automating the election process.

Moreover, the IEC procures in the open market and prices are affected by external factors such as inflation.

2.4.23.
2.4.23.

Donations to the Multi-Party Democracy Fund are indeed a strategic innovation in the party funding regulatory environment, as it allows corporates and the citizenry to contribute to entrenching multi-party democracy.

Contributions to date have been to the value of R7.5 million.

Quite admirably two citizens have made contributions.

The need is there and the IEC is engaging all corporates and citizens who can contribute.
A process of engaging with high net worth individuals is underway to enthuse them about contributing to the fund.

This is distributed in a defined formula contained in the electoral prescripts in both an equity and proportional manner.

2.4.24.

The IEC is intending to open the total fleet of 23 000 voting stations for two registration weekends – one in late 2023 and another in early 2024.

This is an important modality as voting stations are the most accessible for people.
It is a modality that is not dependent on a cell phone as you merely walk to a voting station to register.

It serves as an equalising opportunity for all South African citizens.

To supplement this, the IEC has an online 24/7 accessible voter registration platform.

This is an attractive feature, particularly for young voters, who are the key target.

Civic education programme was launched last year for students in all tertiary institutions which is also important as it is an opportunity to register.

3.
3.

ANNUAL PLANS AND MEDIUM TERMS TARGET PROGRESS 3.1 Introduction 10 79 The Chairperson opened the Strategic Planning Session.

He requested Adv.

BT Bongo to make remarks.

Adv.

BT Bongo indicated that the purpose of the Session was to take stock from the DHA on Medium Term Strategic Framework (MTSF) from 2019 until 2023 and to receive briefings on the Annual Performance Plans of the DHA and the entities.
The Committee would also have an opportunity to conduct oversight of the Permitting Unit of the DHA.

There had been challenges to the backlog in the processing of the applications and members of the public were contacting the Committee to intervene on their behalf.

One other challenge was that when these queries were sent to the DHA, the officials did not respond.

3.2 Department of Home Affairs (DHA).

Mr T Makhode, the Director-General (DG) of the DHA made the presentations.
He re-emphasised the vision, mission, mandate, values and outcomes of the DHA.

The DHA envision South Africa where identity, status and citizenship are key enablers of citizen empowerment and inclusivity, economic development and national security.

The DHA carries out its mission in line with its commitment to citizen empowerment and inclusivity, economic development and national security, by: • Being an efficient and secure custodian of citizenship and civil registration.
• Securely and strategically managing international migration.

• Efficiently managing asylum seekers and refugees.

• Efficiently determining and safeguarding the official identity and status of persons.

The DHA’s mandate is divided into two broad categories namely Civic Service and Immigration Services.

There are three (3) mandates, which are to manage citizenship and civil registration, the management of international migration and the management of refugee protection.
These are values of the DHA and it is committed to being: • People-centred and caring • Patriotic • Professional and showing leadership • Effective, efficient and innovative • Ethical and having integrity • Security conscious • Development oriented 11 80 The DHA has five (5) Outcomes to accomplish its vision and these are: • Secure management of international migration resulting in South Africa’s interests being served and fulfilling international commitments.
• Secure and efficient management of citizenship and civil registration to fulfil constitutional and international obligations.

• Efficient asylum seeker and refugee system in compliance with domestic and international obligations.

• Secure population register to empower citizens, enable inclusivity, economic development and national security.

• DHA is positioned to contribute positively to a capable and developmental state.
3.3 The DHA contribute to the achievement of the National Development Plan (NDP) 2030 objectives: • The inclusion of all citizens in democracy and development is enabled by providing them with a status and an identity that gives them access to rights and services.

This must be done in an efficient, effective, professional and secure manner.
• A further priority for the DHA is to facilitate the acquisition of the critical skills needed for economic growth as determined by the Department of Higher Education and Training (DHET) to build our own skills base.

• The DHA must continue to drive integrated and coordinated border management to ensure our borders are effectively protected, secured and well-managed.
• The DHA plays a key role in enabling regional development by working with SADC countries through the Department of International Relations and Cooperation (DIRCO) to establish efficient, secure and managed migration.

• The DHA is central to harnessing the fourth (4) industrial revolution and building a capable state.

The modernization programme of the DHA can reduce fraud and the cost of doing business by enabling e-government, which will attract more investment into the country.
The NDP aims to eliminate poverty and reduce inequality by 2030 and the major focus of the NDP is to confront the triple challenge of poverty, inequality and unemployment by achieving higher growth rates.

3.4.

State of the Nation (SONA) 2023 commitments.

The DHA made the following commitments after the President’s SONA: 12 81 • More than 340 million paper-based civic records are to be digitized by about 10,000 unemployed young people who would be appointed by the DHA.
• Establish a more flexible points-based system to attract skilled immigrants, implement a trusted employer scheme to make the visa process easier for large investors and streamline application requirements.

• Introducing remote worker visas and special dispensation to high-growth start-ups.

3.5.

Key Development and Critical Success Factors for 2023-2024.
• The DHA will continue to support the Border Management Authority (BMA) as a public entity through systems, legislation, policies and standard operating procedures that form part of the broader approach to managing migration within the RSA.

• The Digitization Programme to modernize civic services as announced by the President in the 2022 SONA has commenced and the 2023/24 financial year will digitize around 36 million birth records.
• The Automated Biometric Identification System (ABIS) went live in November 2022.

The DHA is in the process of implementing phase 2, which will include additional functionalities such as Iris, infant footprint and palm-print backend recognition capability.

• The Biometric Movement Control system (BMCS) rollout to 72 ports of entry will be completed in the 2023/24 financial year.

• The DHA has developed an implementation plan to deal with the Vulindlela Task Team policy and process recommendations.
• A multi-disciplinary task team has been appointed to deal with the Lubisi Report recommendations.

• The implementation of the DHA Repositioning Programme is underway and around 30 projects form part of the Programme Management Office.

• To deal with long queues: - The DHA Menlyn office in the Menlyn Shopping Mall in Pretoria was opened in March 2023 with more malls to follow.

- The Branch Appointment Booking System (BABS) has been rolled out to all 200 modernized offices.
- DHA is in the process of procuring an additional 100 mobile offices to cover the 778 visiting points to augment the DHA access model and strategy.

• The procurement process for the Passenger Name Record (PNR) has started.

The bid specification process is underway.

The PNR system data elements include passenger data from airline reservation systems like payment details, travel itinerary and baggage information.

The PNR is a key component of a risk-based approach to immigration.
13 82 • DHA has made significant progress with the implementation of POPIA.

• DHA will continue with the implementation of the DHA Plan to promote gender-based violence and femicide (GBV&F) as well as gender, youth and persons with disability issues.

Specific focus to be placed on: - Increase awareness on issues of harassment through the launch of women’s forums across the DHA.

- Undertake a survey on different issues related to GBV&F.

- Strengthen the DHA Sexual Harassment Policy.


- Host sessions aimed at empowering employees on issues of harassment, especially lower- level employees.

- Create a dedicated email for reporting cases of harassment.

• Central to the DHA improving its organizational performance and quality of service delivery, is the issue of capacity.

The funding received from the National Treasury as part of the Capacitation Business Case has already shown a positive impact on target setting for 2023/24.
The DHA will strive to improve its HR capacity from 46% to at least 55% over the medium term in conjunction with National Treasury.

• The DHA will continue in its endeavours to find durable solutions for long-lasting systemic challenges such as system downtime through working closely with SITA and other service providers.

3.6.

Summary of the Annual Performance Plan (APP) Targets for 2023/24.
In the Civic Services programme, the DHA plans to register 800 000 births within 30 days a calendar year and 2.5 million Smart Cards to be issued to citizens 16 years of age and above.

The DHA plans to issue 90 percent of the machine-readable passports issued within 13 for applications collected and processed in South Africa per year.

The DHA would also issue 90 percent of machine-readable passports issued within 18 days for applications collected and processed in South Africa per year.
In the Immigration Services, the DHA plans to conduct 1 296 DHA-led law enforcement inspections to ensure there was compliance with the immigration legislation per year.
These operations would focus on restaurants; security companies; manufacturing; transport companies; automotive industry such as car dealerships, towing, scrap yards, and recycling; retail outlets; farms; DHA-led operations or roadblocks and mines The DHA plans also to adjudicate 85 percent of permanent residence applications for critical skills (S27b), general work (S26a) and business (S27c) within eight (8) months for the 14 83 applications collected within South Africa per year.
The DHA would adjudicate 95 percent of critical skills visa applications within 4 weeks for applications processed within the RSA per year, 90 percent of business visa applications adjudicated within 8 weeks for applications processed within the RSA per year and 90 percent of general work visa applications adjudicated within 8 weeks for applications processed within the RSA per year.

To achieve the above, the DHA has 16 adjudicators who would start on 1 April 2023.
The DHA was training 62 adjudicators who would be posted to the South Africa missions abroad.

These 62 adjudicators would assist with the backlog for two (2) months before being posted abroad.

Under the Administration programme, there are sub-programmes such as the Information Service; the Director-General’s Office; the Institutional Planning and Support; Counter Corruption and Security Services and Human Resource Management and Development.

Below are the targets under the Administration programme.
3.6.1.

The Information Service Biometric Movement Control System (BMCS) implemented at 38 ports of entry and the implementa- tion of BMCS will eliminate a lot of fraud and identity theft as has been the case using only photographs as a means of biometric testing.

The use of fingerprint technology will make it increasingly difficult for fraudsters to enter the country anonymously.
Automated Biometric Identification System (ABIS) Phase 2 is operational: Iris, infant footprint and palm-print backend recognition capability is deployed into production.

ABIS started in January 2016.

It is a modern IT system based on commodity hardware.

This modern IT system will integrate with other relevant systems, inside and outside Home Affairs, to allow for one holistic view of the status of clients.
It will serve as a single source for biometric authentication of citizens and non-citizens across state institutions and private sector entities.
The DHA would pilot the IMS Case Management System modules for Inspectorate and Deportations to be piloted in four (4) offices (Head office, Epping Refugee Reception Centre, Pretoria Large Office and Lindela Repatriation Centre) The DHA would implement the Asylum Seeker Management and Refugee System at five (5) refugee reception offices and 2 statutory bodies (Refugee Appeals Authority of South Africa - RAASA and the Standing Committee on Refugees Affairs - SCRA) 3.6.2.

Digitisation of Records.


Target for 2023/24: 15 84 - 36 million records digitised (birth records) - 18 000 Microfilm indexed Target for 2024/25: - 152 million records digitised Target for 2025/26: - 152 million records digitised.
3.6.3 Legislation Target for 2023/24: - White Paper on the Management of Citizenship, International Migration and Refugee Protection submitted to Cabinet for approval Target for 2024/25: - Citizenship, Immigration and Refugees Bill submitted to Cabinet for approval Target for 2025/26: - Citizenship, Immigration and Refugees Bill tabled in Parliament - White Paper on the Management of Citizenship, International Migration and Refugee Protection submitted to Cabinet for approval The Immigration Regulations will be amended to incorporate remote working/digital nomad visas as a priority under one of the existing visa categories.
Consultations with the Department of Trade Industry and Competition are underway on this matter.

The Regulations will be presented to the Minister of Home Affairs by the end of May 2023.

The DHA also planned to table to Parliament the DHA Bill; the National Identification and Registration; Marriage Bill and One Stop Border Post Bills would be submitted to Cabinet and therefore tabled in Parliament for processing.
The DHA would have 20 engagements with the media; will have six (6) outreach programmes and three (3) campaigns.

These targets are intended to communicate and publicise the DHA’s core functions and mandate, while also engaging with the stakeholders to solicit their support and buy-in for the work of the institution.

3.6.4 Institutional Planning and Support.
The 2023 State of the Nation Address commitments such as the establishment of a more flexible points-based system to attract skilled migration, implementing a trusted employer scheme to make the visa process easier for large investors and streamlining application requirements as well 16 85 as introducing a remote worker visa and special dispensation for high-growth start-ups will be covered in the White Paper on the Management of Citizenship, International Migration and Refugee Protection.
The Service Delivery Model (SDM) implementation Framework approved by the Director- General and the User Asset Management Plan (U-AMP) 2024/25 was submitted to National Treasury and copied to the Department of Public Works and Infrastructure (DPW &I.

The DHA would submit approved strategic accommodation requirements for 2025-2026 to DPW&I and budget requirements and options analysis for DHA Hybrid Access Model presented to National Treasury to secure funding for Access Model.
The DHA would digitise 36 million records digitised (birth records); 18 000 Microfilm indexed.

3.6.5.

Counter Corruption and Security Services Under the Counter Corruption and Security Services, the DHA would review 16 Business processes to identify vulnerabilities to fraud, corruption and security breaches (per year).

Seventy-five percent of reported cases of fraud and corruption were finalized within 90 working days (per year).
Forty Threat and Risk Assessments (TRAs) are conducted per year in accordance with the requirements of Minimum Information Security Standards (MISS) and/or Minimum Physical Security Standards (MPSS).

Four hundred and fifty vetting files were finalized and referred to State Security Agency (SSA) for evaluation.

3.6.6.

Human Resources Management and Development .

DHA Gender-based Violence and Femicide Plan were implemented and 70 percent of misconduct cases were concluded within 90 working days per year.
In addition, the Department of Home Affairs reported on the upcoming legislation and update the policy to amend consequential legislation to the Electoral Amendment Bill.

The DHA reported that the Electoral Commission Act, the Electronic Communications Act, the Political 17 86 Party Funding and the Financial Management of Parliament and Provincial Legislatures Act were being drafted together with the Electoral Commission (IEC).

The document was yet to be finalised.


The project of moving Refugees Reception Centres (RROs) closer to the borders has been shelved due to the unavailability of funds.

With the One-Stop-Border-Post (OSBP), the Public-Private Partnership (PPP), the DHA must obtain approval from the National Treasury (NT).

The DHA was granted Treasury Approval (TAI) on 10 August 2017 to start drafting the Request for Proposal (RfP).
The draft RfP and the draft PPP Agreement were concluded on March 2022 and submitted to NT on 18 March 2022.

The DHA engaged with the NT draft on the RfP, the draft PPP and this resulted in the revised RfP that was re-submitted to NT in December 2022, and final amendments are expected to be completed by 31 March 2023.

The RfP would be issued to the market before the end of April 2023.
In March 2025, the construction would commence in phases and could take up to 3 years for each of the six (6) ports of entry.

3.6.7 Vulindlela Report During the February 2022 SONA, the President announced that South Africa would review its visa regime to make it easier for foreigners to travel to the country for tourism, business and work.

Operation Vulindlela delivered to the DHA a report with eight recommendations broken down into Process Recommendations and Policy Recommendations.
The Immigration Services Branch has studied the report and was finalising the draft Implementation Plan.

Recommended Required Actions Target date 1.

Streamline documentation required for work visa ap- plications.

2. Review need for additional capacity in the Immigration Amend sections 9, 14 and 18 of the Immigration Regulations.

This would classify documents into those necessary to adjudicate the application and those required for entering the country.
Removal of the Radiology report as a requirement for all visa types.

Amend the years for which a Police report must be submitted to the last 5 years where a person resided.

Develop a new organisational structure, taking into account required technological innovations.

Advocate for necessary human resources and appoint qualified professionals.

18 Review of the Regulations and the Gazetting of the revised delegations affecting the recommended changes by 15 March 2023.
Draft regulations submitted to legal for their input.

Copy shared with the Presidency team for in- puts Immigration Regulations and SOP are to be amended by the end of May 2023.

Phase 1: DHA submitted a Business Case for Capacitation of the Department (Phase 1) to National Treasury in October 2021 for 762 positions, 18 of which were for adjudicators for the IMS Branch and they Who DHA DHA 87 Recommended Required Actions Target date Who Services branch.

Draft structure for Permitting concluded.

3.


Modernise IT systems and introduce automation Approve business case for capacitation for the IS branch.

Upgrade connection speeds within the DHA from 512kbps to min 30Mbps.

Develop business cases and secure resources for upgrading IT infrastructure.

Appoint a dedicated team of IT specialists to support the platform.

4.

Upgrade the Employment Services of SA (ESSA) database Upgrade and automate the ESSA database.
Presidency to send a letter to DEL to obtain buy-in updating the ESSA database.

5.

Create a Trusted Employer scheme 6.

Introduce a points-based system to streamline Amend the Immigration Regulations to introduce the scheme as an additional approach to securing a work visa.

Use the existing CAU list to create a trusted employer database.

Identify the requirements that need to be verified by the employer.
( SAQA, Professional body registration, Foreign Police Clearance, previous work experience, DEL letter).

DHA will verify current employment and current visa.

Include penalties/ blacklist for false verification and any fraud.

Create criteria for who will make the trusted Employer database, e.g.

financial threshold of employer, sector, multinationals, etc.

Amend the Immigration Regulations to introduce the points system as an additional approach to securing a work visa.
19 have been appointed to commence on the 1 March 2023.

Phase 2: For a semblance of normality in our frontline offices, we need a minimum of 60% (2917 positions) or at worse 55% (1 937 positions) for both Civic and Immigration Services.

The Business Case for phase 2 of the Capacitation of the Department has been finalized.

Revised capacity and structure submitted to the presidency for comments.
The Department is in the process to sign an MOU with the CSIR to assist with the automation of systems in the IMS.

This will commence with an activity of doing a thorough diagnosis of the current system infrastructure with the view of developing an integrated, single-view system for Immigration Services.

An analysis of the current environment will determine the scope of work as well as the duration of the project.

The expectation is that the automation of all systems will require 3-5 years to complete.
The work visa application process requires the testing of the labour market on government platforms such as the ESSA database.

The recommendation to upgrade and automate the ESSA database has been shared with the Department of Employment and Labour to solicit their input in this regard.

The Vulindlela team from Presidency will engage DoEL and DTIC to obtain buy-in and their support.
The Department has in place a list of trusted Corporate Accounts Clients which has similarities with a trusted employer scheme.

A comprehensive study will be done to establish the parameters for the scheme, including monitoring of compliance by trusted Employers.

Incorporating the scheme/list will require the amendment of the Immigration Regulations.

The review of the Regulations will include public participation and consultation with the various government clusters which will be concluded 31 May 2023.
DHA & CSIR DoEL DHA A system to apply for visas might not require a change of legislation.

The Points- Based system is already currently part of the Green Paper on International DHA 88 Recommended Required Actions Target date Who existing visa categories and introduce greater flexibility.

7.

Update the Critical Skills List frequently & is informed by national strategic industries.

8.

New visa categories cater to remote workers and start-ups.
Introduce a manual Points base system to the current SOP, while the electronic system is being developed.

We need to determine the final score to qualify to apply for a work visa, e.g.

considering Qualification, experience, salary threshold, etc.

Consultation with DEL,DTIC.

DHET, SAQA to take place to determine the scores.

Include necessary steps for Critical Skills List updates in the annual plans of the DHA & DHET.

Engage DTIC for their input.


Specify timelines in advance to ensure that the consultative process is clear and accommodated by various stakeholders.

Specify requirements for a remote work visa and start-up visa (incl.

for partners & children) Amend sections 11 and 14 of the Immigration Regulations Introduce We can also amend regulation 11(1)(b)(iv) to include this as one of the categories.

This is quicker and also safer as the visa can be issued for 3 months with the option to extend if the need arises.
We need to determine the specific requirements for both categories ( Minimum amount R1m pa for Remote Visa), Start Up visa – e.g.

R5 million from aboard transferred to SA.

DTIC approval for which sector is critical.

Migration.

The Department will engage CSIR to assist with the development of an easy to use point based system as part of the MOU.

Completion date March 2024.

Consultation with Legal Services on this process and its implications to be done.
Regulation 18 must be amended to include the points base system The Department will develop a document that details the steps required in the drafting of the critical skills list, including the consultative processes required.

DHA Target date: April 2023 DHA This recommendation requires a consultative process between the DTIC, DoEL, SARS, Organised Labour, NEDLAC and Business Community.
This item, as well as the current multiple visa categories, are part of the current discussions on the Green Paper on International Migration Policy.

A stakeholder consultative workshop was held on 23 March 2023.

The following Departments attended, (DOEL, DTI, and DHET).

Formal inputs will be received from these Departments.

4.
4.

BMA 2023 – 2025 Strategic Plan and 2023-2024 Annual Performance Plan The Commissioner reported that the development of the BMA Strategic and Annual Plans involved the Department of Planning, Monitoring and Evaluation (DPME); the DHA; Department of Agriculture, Land Reform and Rural Development (DALRRD); the Department of Health (DoH); the Department of Forestry, Fisheries and Environment (DFFE); the Cross- Border Road Transport Agency (C-BRTA) and the South African Police Service(SAPS).
During the BMA Strategic Planning Sessions, he reported that the Strategic Plans (2020-2025 and APPs 2022-2023) of the DHA; DoH; DFFE and DALRRD were scrutinised.

These departments would cede selected functions to the BMA.

The DPME guarded the BMA in the development of the Strategic Plan and APPs with inputs from NT and the Auditor-General of South Africa (AGSA).
20 89 Section 5 of the BMA Act, the Authority is expected to fulfil the following legislated mandate: a) Facilitate and manage the legitimate movement of persons within the border law enforcement area and at ports of entry; b) Facilitate and manage the legitimate movement of goods within the border law enforcement area and at ports of entry; c) Co-operate and coordinate its border law enforcement functions with SAPS, SARS & SANDF, border communities or any other persons.
Section 4 (2) emphasizes that border law enforcement functions should be exclusively performed by the officers of the BMA and BMA’s is overseen by the Border Technical Committee (BTC) & Inter-Ministerial Consultative Committee (IMCC) – (No Board).

The Minister of Home Affairs would chair the IMCC and the Commissioner would report to the Minister of Home Affairs.

The Commissioner is the Commander of the Border Guard, the Accounting Officer, the Accounting Authority and the Chairperson of the BTC.
The vision of the BMA creation of a world class integrated border law enforcement Authority partnering for a safe and prosperous South Africa.

The mission is to be a credible provider of highly efficient, integrated, well-coordinated and technology-driven border law enforcement services that contribute to national security and socio- economic development by inculcating an ethical culture that empowers teams for service excellence.
Value proposition: A world-class coordinated and integrated Border management platform with a Single Command and Control that supports Secure Borders, Safe Travel, and Trade Facilitation, which promotes Socio-economic Development.

The BMA has four key outcomes and these outcomes are aligned with the outcomes of the Medium-Term-Strategic-Focus (MTSF) priorities.
• Outcome 1: Institutional excellence distinguished by good corporate governance and ethical leadership; - Priority 1 - A capable, ethical and developmental state.

- Priority 2 - Economic transformation and job creation.

- Priority 6 - Social cohesion and safer communities.
21 90 • Outcome 2: Secure borders that protect national interests and enhance national security; - Priority 6 - Social cohesion and safer communities - Priority 2 - Economic transformation and job creation • Outcome 3:Enhanced trade and socio-economic development; Priority 1 - A capable, ethical and developmental state.

Priority 2 - Economic transformation and job creation.

Priority 7 - A better Africa and world.


• Outcome 4:Strengthened coordination and cooperation amongst stakeholders within the border management environment.

Priority 1 - A capable, ethical and developmental state.

Operating Model The BMA has signed service level agreements with the DHA; DoH; DFFE and DALRLD.

F Functions, staff and assets of these departments at the border environment would be transferred to BMA.
The core functions of the BMA are land border law enforcement; maritime border law enforcement and Aviation Border law enforcement.

There would be Head office nine (9) regional offices.

The border guards would be deployed at the vulnerable segment of the borderline, 53 land ports of entry, 11 avian ports of entry and nine (9) maritime ports of entry.
Furthermore, there are stakeholders such as the South African National Defence Force (SANDF), the South African Revenue Services (SARS) and the South African Police Services (SAPS) that would cooperate under the implementation protocol.

The C-BRTA and South African Health Products Regulatory Authority (SAHPRA) would operate under the basic Memorandum of Understanding.
The BMA would also work with the local and international communities; the border communities; the law enforcement community, travellers and neighbouring countries.

BMA Operationalisation 22 91 The President has signed Section 97 Proclamation shift function to BMA.

The Ministers, Directors-General and the Chief Financial Officers of the four (4) Departments (DHA; DoH; DFFE and DALRRD) signed the joint submission in December 2022.
The Ministry of Public Service and Administration (MPSA) approved the determination for the transfer of resources and NT concluded budget shifts.

The Agreement of the transfer and integration of staff into the BMA was signed by Government and the organized labour and staff migration plan endorsed by National Macro-Organizational Government (NMOG) Streams and implemented.

The BMA signed a Shared Services Agreement with the Department of Home Affairs for assistance with corporate services support.
As indicated, the BMA has four (4) outcomes and four (4) targets for five (5) years to accomplish 15 targets.

The five-year targets are as follows: • • Integrated good governance framework for the BMA established.

Intelligence and risk capability established and implemented.

Six Priority land ports of entry functional as secure trade- and travel-friendly one-stop border posts.

• Eleven (11) agreements with stakeholders were signed and implemented.
The targets for the BMA are as follows: • Business process reviews are conducted to detect system and process-related vulnerabilities to fraud and corruption.

• 100 percent of valid invoices are paid within 30 days.

• Three (3) quarterly approved reports were submitted to DPME as prescribed.

• Gender-based Violence and Femicide Plan implemented as per approved implementation plan.

• Disaster Management plan approved.


• National Targeting Centre (NTC) was established as per the proposed operating model (business case).

• The BMA rolled out in phases along additional two (2) segments of the land border law enforcement area • The BMA rolled out to one (1) additional community crossing point (CCP).
• Thirty (30) PoEs rendering port health services in compliance with International Health Regulations (2005) and National Environmental Health Norms and Standards • 100 percent of detected illegal persons at the ports of entry are processed for deportation.

• 100 percent of pre-booked CITES consignments that go through the PoE endorsed.

23 92 • The facilities at 22 identified PoEs audited for transfer to the BMA.

• The OSBP: Bid adjudication for selection of preferred bidders concluded.
• Three (3) signed Implementation protocols (with SAPS, SARS & SANDF) were monitored for implementation.

• 25 percent of cooperation agreements signed and implemented.

5.

Electoral Commission (IEC) 5.1.

Annual Performance Plan for 2023-2024 Financial Year.

The Chief Electoral Officer (CEO) made the presentation.

He indicated that the IEC received a budget of R2.2 billion with four (4) programmes and 14 targets for the 2023-2024 financial year.
These programmes are as follows: • Programme 1: Administration.

The purpose of Programme 1 is to achieve the strategic outcome of strengthening institutional effectiveness at all levels of the organization.

It also provides the overall strategic management of the Electoral Commission, as well as centralized support and financial management services.

This programme has four (4) targets.

• Programme 2: Electoral Operations.


Programme 2 focuses on the strategic outcome of managing and delivering free and fair elections by striving for excellence at the voting station level; ensuring accessibility and suitability of voting facilities and processes; managing results; maximising electoral justice for all stakeholders in the electoral process; enhancing the credibility of the voters’ roll; ensuring compliance with legal prescripts; and continuously improving the legislative framework.
• Programme 3: Outreach.

This programme focuses on the strategic outcome of informing and engaging citizens and stakeholders in electoral democracy.
The programme fosters participation in electoral democracy by providing civic and democracy education continuously; voter and balloting education as may be required by each election; strategic and thought leadership on matters pertaining to electoral democracy; broadening our research agenda and issuing publications; increasing visibility through proactive consultation, effective communication, and presence among our stakeholders and communities; facilitating platforms for political dialogue; cultivating an environment conducive for the holding of free and fair elections; and constantly engaging the media.
24 93 • Programme 4: Party Funding.

This programme focuses on the strategic outcome of contributing to the enhancement of transparency in elections and party funding.

The programme manages party funding and donations in the: o Compliance with legislation, and strengthens cooperative relationships by providing consultative and liaison platforms between the Electoral Commission and political parties and candidates, using systems, people and processes that are sustainable.
- It also provides effective management of the registration of political parties and processing of the nomination of candidates for various electoral events.
5.2 National and Provincial Elections 2023 Critical Milestones 25 94 5.3 The IEC indicated that consequential amendments that require attention would be: • Section 236 of the Constitution provides that “to enhance multi-party democracy, national legislation must provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis”.

• The Political Parties Funding Act is to be amended to bring independent MPs within the scope of the Bill.
• Other optimization amendments to the Political Parties Funding Act.

5.4.

Briefing on Electronic Voting Model (e-voting).

The IEC reported that it undertook study visits over the years and in 2010-2011, the IEC commissioned a desktop study into electronic voting.

In March 2013, the Electoral Commission convened a conference on e-Voting and Members of political parties represented in Parliament were invited to participate, together with interested civil society organisations.
The IEC defined an electronic voting system as an integrated device that utilizes an electronic component for one or more of the following functions: ballot presentation, recording of votes and tabulation of votes cast.

It was indicated that E-Voting might be conducted in an environment that is under the control of the Electoral Management Body (EMB) such as the IEC, or an environment that is not controlled by an EMB such as the IEC.
E-Voting in a controlled environment, such as a polling station, includes EVMs (electronic voting machines of India) and direct recording electronics (DREs) in Brazil 26 95 E-Voting in uncontrolled environments includes internet voting, mobile phone voting, fax and email voting (France, Canada, Japan, Estonia & USA).

E-Voting in a controlled environment EVMs and DREs are located inside the polling station and administered by voting staff.
The voter directly enters their choice into electronic storage using the touch-screen, push buttons, keypad or similar device and votes cast are stored onto a memory cartridge, diskette or smart card.

This system is used in India, Brazil, Venezuela, France, Russia, Japan and some states in the USA.
DRE VVPAT - Voter Verifiable Paper Audit Trail in a controlled environment: an e-voting machine with added facility of printing pieces of paper showing the ballot choice of voters which are then placed in a physical ballot box and this allows for a manual recount of ballots (audit trail) if votes are disputed In effect, DRE VVPAT involves the use of electronic voting machines in parallel to the paper ballot voting method, with the latter as a backup should results be disputed and subject to re- count, which is not possible if only an e-voting machine is used.
Optical scans are electronic counting machines.

The votes are cast on paper ballots and fed into an optical scanner that tabulates votes cast and the system was used in the Philippines in the 2010 elections.

Voters can vote through Internet voting and the system would be available at polling stations or any location with access to the Internet (remote Internet voting).

The system was used in Estonia, Canada & France.


The voters’ choice is encrypted by the voting application and placed in the inner envelope.

The manufacturers of e-voting machines are mainly located in the US, Canada, India and Brazil.

The costs of EVM without VVPAT: $100 in India to $7 000 in New York EVM with VVPAT: additional $1 500 to the cost of EVM.

6.

Government Printing Works (GPW).

6.1.

Annual Performance Plan for 2023-2024 Financial Year.
Ms Alinah Fosi, the Chief Executive Officer made the presentation and indicated that the APP outlines all the outcomes, outcome indicators and performance targets for the 2023-2024 financial year and the targets are aligned with the Strategic Plan 2020-2025.

The APP was further 27 96 developed on the revised Framework for Strategic Plans and Annual Performance Plans with the assistance of the Department of Planning, Monitoring and Evaluation.
She indicated that the GPW contributes to the following MTSF: • Building a capable, ethical and developmental State.

• Economic transformation and job creation.

• Social cohesion and safe communities.

• A better Africa and world.

• Education, skills and health.

• Consolidating the social wage through reliable and quality basic services.

• Spatial integration, human settlements and local government.

6.2.

Progress on the 2019 to 2024 Strategic Framework Targets demonstrates that GPW performed well.
• GPW has successfully maintained and achieved the quality measure of producing security- printed documents at 100% compliance against client quality and quantity specifications.

As at the mid-term reporting period a total number of 432 905 identity documents/cards and 1 432 738 passports were produced.

• In contributing to the “economic transformation and job creation” strategic outcome, GPW has been implementing the youth and women through its Artisan and Graduate skills programme.
Of the 100 planned for achievement over the MTSF period, a total of 54 have already been taken through this programme.

• GPW received a disclaimer audit opinion for the 2019/20 and 2020/21 financial years, as a result of the challenges that emanated from the system crash that led to the loss of critical finance data.

GPW has been implementing a migration plan to stabilise and sustain all operations, particularly in ICT and Finance.
• GPW’s focus on business continuity, risk management and resolution of audit findings remain a priority to strengthen internal controls and ensure clean governance, given the challenges experienced in the past financial years.

6.3.

Critical Projects.

• GPW repositioning: change management and culture change.
GTAC appointed and busy with the development of a turnaround strategy and provide support on the implementation of HR recommendations based on the MRP Report and change management 28 97 • Modernisation of GPW- a renewed focus on ICT interventions in the wake of 4IR.

A migration plan is being implemented to ensure the stabilisation and sustainability of the ICT environment.
• Business continuity of all operations and sustainability of GPW, given the challenges that GPW has been experiencing in ICT and its facilities • A conscious journey towards a clean audit rests upon the following crucial pillars: - Quality of oversight processes in GPW- to realise the imperative of achieving a clean audit - Strengthening and monitoring internal controls to ensure their relevance and effectiveness - Financial probity and culture that supports probity with our procurement processes being efficient and compliant with legislation, having integrity, equitable and fair - Overall governance: leadership, management responsibility and effectiveness of governance structures such as EXCO, MANCO, Audit and Risk Committee within the combined assurance framework • Implementation of Ministerial Review Panel Report recommendations: Action plan being implemented based on the short-term, medium-term and long-term activities and milestones.
• Security Printing Bill: The Provincial consultative sessions on the Bill are ongoing.

GPW in partnership with the DHA team has already presented to all Provinces, except for North West and Western Cape.

Engaging them on dates to finalize consultation.

• Appointment of the Ministerial Advisory Board (MAB).

Governance structure to advise Minister and EXCO on overall GPW operations.

• Strengthening systems of employee wellness and occupational health and safety.
Implementation of policies, procedures and plans to create and sustain a caring environment • Critical Infrastructure Projects: New Head Office (ABSA) building refurbishment) and Masterplan (initiation of construction plan): both projects approved for implementation.

• DBSA has been appointed as the implementing agent and has begun with administrative processes towards the refurbishment and construction of these critical facilities.
• Implementation of ISO 9001, ISO 14001, ISO 45001, ISO 27001, ISO 22301, ISO 18788 and ISO 14298: Research and development, including support and service maintenance for 5 years post implementation • Conduct a polycarbonate printing and assembly plant techno-economic study: agile printing facility, which is ready for expected future trends in technology and the printing industry.

7.

National Treasury (NT) on funding allocations for Home Affairs portfolios.
Ms Gillian Wilson noted the lack of funding for the BMA and the lack of capacity at the DHA.

She indicated that funding for the IEC had been adjusted in anticipation of the Provincial and 29 98 National Elections and Amendments to the related legislation.

She encouraged the DHA and BMA to develop proper business cases and cash flow management in line with National Treasury with policy and advice.

8.

Oversight visit to the Head Office of the DHA and the Menlyn Shopping Mall office.
On 30 March 2023, the Committee conducted an oversight visit to the Department of Home Affairs Head Office, in particular the Permitting Unit.

The Committee then visited the newly opened DHA office at the Menlyn Shopping Mall.

8.1.

Permitting Unit at the Head Office.

The Acting Deputy Director-General for Immigration Service, Mr Yusuf Simons, welcomed the delegation.

He took the delegation to the Adjudication Hub and explained how applications were received from the Visa Facilitation Services (VFS).
He reported that the process would start with the applicant applying online to VFS for a visa or permit.

Once that has been done, the applicant makes an appointment with VFS for biometrics and submission of their application.

VFS would get the application and forward it to the Department of Home Affairs and it is received at the Adjudication Hub at the Head Office.

The Hub was created during the Covid-19 period in 2021.
The VFS system generates a reference number for the application and is packaged by VFS to the DHA.

Four Assistant Directors received the applications through the DHA ICT.

They would then assign the applications to adjudicators.

There were 24 adjudicators and there would be a further 62 adjudicators to be assigned to assist with the backlog.

These 62 adjudicators would work at the Hub for two (2) months and thereafter would be posted in the missions abroad.
It was reported that an official is supposed to finalise about 15 a day applications if the applications have all the supporting documents.

The adjudicators have to confirm the authenticity of the supporting documents and it can take as little as 15 minutes.

The Committee was concerned about where the delay was and if it can take this short.

The challenge was working with external stakeholders such as the banks to confirm the bank statements, because of the Protection of Personal Information Act.
The applicant has to give consent to the DHA to confirm their bank statements.

The banks do not have dedicated employees to verify the statements.

There is slow or no response from other stakeholders such as former employers or consulates.

The Section also 30 99 has to interact with internal stakeholders such as the inspectorate.

It was reported that the bulk of the applications were for spousal visas.

The inspectorate has to check if the marriage is of good faith.
This process takes time and that was causing the delay.

The DHA reported that the backlog in the processing of visas and permits was from 2022 backward and was anything over eight (8) months.

It was also indicated that there was no backlog at the level of the adjudicators.

The adjudicators have made recommendations for approval or rejection.
All the applications have to go to the Director, Chief Director, Acting Deputy Director and the Director-General, irrespective of whether the application had been recommended for rejection.

The Committee was concerned that when applicants apply for VFS, the DHA sometimes would reject the application on the basis that certain documents such as a copy of the valid passport are missing.

VFS should not have accepted an incomplete application.
The DHA indicated that VFS is not allowed to refuse to take an application.

There has been a court judgement in connection with this since the contract with VFS is not a Public Private Partnership and the DHA cannot delegate its functions to a private company.

VFS has a checklist of all the applications and the desk manager there would indicate to the applicant there was a document missing.

The applicant sometimes insists that VFS should apply with the missing supporting documents.
The process at VFS is quick but the delay in processing the applications was with the DHA.

The tender for VFS would end.

The DHA has advertised a tender to appoint a Transitional Adviser and the closing date was 31 March 2023.

The work of the Transactional Adviser is to advertise a tender in the market to find a service provider.

The tender with the new service provider would be different from the current VFS because it would be PPP.
In the past, the DHA advertised the tender for Transactional Adviser and it was found that Transactional Adviser was charged with corruption.

For the second advertisement, there was no response and the third tender is the one that closed on 31 March 2023.

After the Lubisi Report, the DHA increased the level of control.

The delegations for Temporary Residency Visas (TRV) were increased to four (4) and for the Permanent Residency Permit (PRP), the delegations were increased to six (6).
Before the Lubisi report, an adjudicator would finalise the TRV.

The DHA was planning to decrease the delegations of the TRV from four (4) to two (2) and for the PRP from six (6) to four (4).

This would assist with the faster processing of the applications and deal with the backlog.

31 100 Prior to the recommendations of the Lubisi Report, all DHA officials had access to the VAS system, even some who were no longer in the employ of the DHA.
All officials were disconnected and those who needed access to the system had to reapply.

The Lubisi report flagged about 45 000 permits and visas that could have been obtained irregularly.

There was a multi-disciplinary team that was appointed and it would look into all the 45 000 cases and the work had already started.

The Committee expressed concern with the slow or no response to the queries that were sent to the DHA on behalf of the members of the public.
The Minister of Home Affairs had assigned an official in Cape Town where the Committee could send their queries.

The official is doing his best but the colleagues at the Head Office were not responding to him.

The DHA indicated that it has identified a person who would only deal with queries from Parliament and the email would be sent through to an official in Cape Town.
The Committee also indicated that it was concerned that if the application was incomplete and it was recommended at the first level of quality assurance, why clog the system by passing it to the last person to reject, instead of rejecting it at the first instance.

These would add to the backlog.

The applicant would sometime receive the rejection after three (3) years and thereafter start the process of appealing.

8.2.

Menlyn Shopping Mall DHA Office.


The delegation proceeded to the Menlyn Shopping Mall Office together with the Deputy Minister of Home Affairs.

The Acting Provincial Manager welcomed the delegation and took everyone inside the office.

He indicated that the applicants would make an appointment for the application of passports and Smart ID Cards through the Branch Appointment Booking System (BABS).

The system would indicate an appointment for example that it would be between 10:00 and 11:00.
When the applicant arrives, they would be given a ticket number and asked to sit down.

The system would call them one by one.

The people would be served within an hour.

For applicants who want to make an appointment but do not have data; the office has a tablet that they can use to make an appointment.

BABS does not allow making an appointment for the collections, however, the office has segregated the functions.
There is also an e-channel where applicants can both apply for Smart ID Cards and passports and make an appointment with the office for biometrics to be taken.

Walk-in applications are also allowed.

32 101 It was further indicated to the Committee that there were three booths where photos are taken for passports and ID Smart Cards.

The Provincial Manager reported that the province had 34 offices.
Of the 34 offices, it was only Temba, Mabopane and Carletonville offices that were not modernised due to the space required for the photo booths.

The Deputy Minister indicated that 200 offices were not modernised countrywide due to space.

The DHA was piloting a simple solution where the photo booth would be compressed into a small box at the Cape Town Refugee Reception Office and it would use the LTE connection.

9.

Committee observations and responses by the DHA and entities 9.1.
Committee observations.

9.1.1.

The Committee expressed a concern that there were DHA offices that have the Branch Booking Appointment System (BABS) and in most cases, the system does not work properly.

There were reports that in some offices, walk-ins were not assisted.

They were told to book an appointment through BABS.

Some people are not able to make the bookings through the system.

9.1.2.
9.1.2.

The Call Centre at the Department was not working properly and often was not answered and this frustrates clients who want to make enquiries.

9.1.3.

The queries that are forwarded to the Department by members of Parliament and in particular members of the Committee on behalf of the members of the public were not responded to.

The officials that were not responding to members of the Committee and the public, should face consequences and improved management.

9.1.4.
9.1.4.

The Department was conducting many operations and inspections on undocumented migrants but it still appears that the DHA was unable to track undocumented migrants or persons whose papers had expired and to deal with companies that employed undocumented migrants.

9.1.5.

The Committee was concerned about the long queues at DHA offices.

The downtime at DHA offices was still a concern as this contributes to long queues and frustration for members of the public.
There are mobile offices that did not have generators; therefore, when there was load shedding, the mobile offices were unable to process documentation.

It was also pointed out that those offices were experiencing network challenges with or without load shedding.

An example is given of the East London office.

The DHA is at the centre of service delivery and queues should be resolved as soon as possible.

9.1.6.
9.1.6.

The DHA offices in the rural areas were not all modernised to ensure that people could apply for Smart ID Cards.

9.1.7.

The DHA was struggling to deal with the Late Registration of Births (LRB) and the backlog should be cleared.

33 102 9.1.8.

Some people were applying for passports through the eHomeAffairs system; the system would not link the payment to the applications.

In some instances, the client would go to the office to make payment because they need the passport urgently.
The client would be struggling to get a refund for the additional payment.

9.1.9.

The DHA was planning to eradicate the issuance of the Green Identity Book; however, the issue of people who are applying from overseas has not been resolved.

The DHA’s target to process a passport application is 13 days while there was no target for an application that was applied for overseas.

9.1.10.
9.1.10.

The Committee requested that the DHA should focus on applications for Identity Documents towards the 2024 National and Provincial Elections and there should be cooperation with the IEC.

9.1.11.

Several Home Affairs offices around the country did not have cameras and the Committee recommended the installation of cameras during the July 2021 unrest as part of the security measures.

9.1.12.

The Committee was concerned about the backlog at the Permitting Section at the Department of Home Affairs.
9.1.12.

The Committee noted and appreciated the work that was done by the Civic Branch of the DHA but the issue of LRB should be resolved and sorted out.

9.1.12.

The BMA should have a plan to deal with the corruption at the Ports of entry and it would be difficult to secure the borderline because in some areas there was no fence.

9.1.13.

The Committee noted that the BMA was underfunded and more border guards and surveillance technology were needed on the ground.

9.1.14.
9.1.14.

The Committee commended the BMA on combating stock theft; intercepted 55 stolen vehicles through the Lebombo and Beitbridge Ports of Entry and intercepted 13 630 undocumented migrants en route to South Africa.

9.2.

Responses by DHA and entities 9.2.1.

The DHA indicated that there were modernized offices in the townships and that there was no biased towards urban areas.
The concern with the East London office was reported to the new Office Manager and it operates from 06:00 to deal with the large volume of people.

9.2.2.

The DHA reported that there were 178 412 Zimbabwean Special Permit (ZEP) holders.

It was reported that 27 799 had applied for waivers and 5 905 had applied for a mainstream visa.

The ZEP was meant to end on 31 December 2022; however, the deadline was extended to 30 June 2023.
The DHA also indicated that another programme for Lesotho citizens called the Lesotho Special Permit would also end on 31 December 2023.

34 103 9.2.3.

The DHA indicated that LRB was prioritised and the Department want a model that would be applied across the country.

9.2.4.

The DHA indicated that immigration is a global challenge.

Most countries after covid-19 pandemic are not coping with migration and were considering suggestions to automate more aspects of permitting.

9.2.5.
9.2.5.

The DHA reported that about 720 000 people had used the BABS system so far to make appointments and it was stated that the poor are not excluded by using the system.

For those who want to make an appointment but do not have the gadget to do so, the DHA has tablets to assist or could walk in and they would be assisted.

The DHA conceded that BABS would indicate errors because it was overloaded.

9.2.6.

With regards to the Call Centre, the DHA reported that the Centre had 120 lines with 92 agents.
It was stated that 72 were taking calls while 20 agents deal with emails.

9.2.7.

The DHA reported that all mobile units have generators to operate during load-shedding.

11.

Recommendations DHA 11.1.

An update on all outstanding report recommendations contained in the interim legacy report of the Committee will be required by the third quarter of 2023.

11.2.
11.2.

Whilst the additional allocation of funds increasing the DHA capacity is appreciated, the DHA budget should continue to increase capacity even beyond the 55% currently allowed for given the ongoing delays in services to the public.

Planning should start to possibly retain some of the youth employed in the digitisation project after their 2 year contracts.

11.3.
11.3.

Whilst the additional caution introduced to prevent fraud in applications for Visas and permits is important, there must be decentralisation and downward delegation of applications with other ad hoc and automated system checks and balances put in place to address the backlog.

11.4.
11.4.

There should be ambitious time bound targets set in the annual plans and related budgets for so-called non-critical permits such as spousal permits which have a knock on effect on the reputation of the country to attract scarce skills and investments.

11.5.

The Branch Appointment Booking System should be enhanced to ensure that it accommodates the collections of documents and that walk-ins should be allowed in all offices.

11.6.
11.6.

The DHA should capacitate the Call Centre to ensure that members of the public are assisted timeously.

11.7.

The DHA should ensure queries sent to the Department by Committee members on behalf of the public, should be responded to.

35 104 11.8.

The DHA should deal with long queues at its offices and mobile offices should be procured and deployed in rural areas.

11.9.

DHA offices in rural areas should also be modernised to ensure the phasing out of the Green Identity Documents.

11.10.
11.10.

The Committee requested that the DHA should focus on applications for Identity Documents towards the 2024 National and Provincial Elections and there should be cooperation with the IEC.

11.11.

The DHA should ensure that its offices installed cameras for security purposes.

11.12.

The DHA should work faster on resolving the Late Registration of Births to ensure that all South Africans have the necessary documents while at the same time, encouraging citizens to register births within 30 days.
11.13.

The Deputy Minister should engage with VFS on the issues raised by the Committee and report back.

The Committee would then conduct an oversight visit to VFS office/s.

11.14.

The Public Private Partnership tender for the appointment of a new Visa Facilitation Service provider should be completed as soon as possible with the inclusion of requirements to filter out incomplete applications which are now clogging the application process.

BMA 11.15.
BMA 11.15.

The BMA should work closely with the National treasury to get more funding for the full operationalisation of the BMA, expansion of its patrolling of the borderline and roll out to guarding coastal borders.

11.16.

The BMA should continually endeavour to make good on the promise that its establishment would improve the efficiency of border management beyond the capacity seeded from other departments despite fiscal constraints.

11.17.
11.17.

An update on all outstanding report recommendations contained in the interim legacy report of the Committee will be required by the third quarter of 2023.

IEC 11.18.

An update on all outstanding report recommendations contained in the interim legacy report of the Committee will be required by the third quarter of 2023.

11.19.
11.19.

Funding provisions will need to be made for the inclusion of independent candidates in the forthcoming National and Provincial Elections and forthcoming Party Funding Act amendments.

11.20.

The IEC should aspire towards its initial targets set in 2019 for the registration of 29 million voters and 74% participation in elections.

36 105 11.21.
36 105 11.21.

The IEC will require additional funding in the adjusted budget to allow for extensive voter education and mobilisation given the changes to the Electoral laws around independent candidates.

GPW 11.22.

An update on all outstanding report recommendations contained in the interim legacy report of the Committee will be required by the third quarter of 2023.

11.23.
11.23.

There should be a timeline provided by the GPW for the implementation of the remaining Ministerial Review Panel Report Recommendations.

11.24.

GPW needs particular focus and oversight on ensuring the timely submission of accurate audit data to internal and external audit and consequence management for dereliction in this regard.

11.25.

The GPW should work in collaboration with National Treasury to ensure that non- payment by government clients after 30 days is addressed.

11.26.
11.26.

The GPW must provide an update on its consultation on the State printers bill and finalise the tabling of this legislation as a matter of urgency.

Report to be considered.


37 106 4 REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON BUDGET VOTE 40: TRANSPORT AND THE STRATEGIC PLAN AND ANNUAL PERFORMANCE PLAN 2023-24 OF THE DEPARTMENT OF TRANSPORT, DATED 2 MAY 2023 The Portfolio Committee of Transport, having considered the revised Strategic Plan, Annual Performance Plans and Budget (Vote 40: Transport) of the Department of Transport, reports as follows: 1.
INTRODUCTION The Portfolio Committee on Transport (“the Committee”) considered the 2023/24 budget of the Department of Transport (“the Department” or “DoT”) on 18 April 2023.

In preparation for this report, the Committee was briefed on the revised Strategic Plan (2020-2025), 2023/24 Annual Performance Plan (APP) and 2023/24 Budget Allocations of the Department.

The Committee further hereto engaged with the South African National Rail Agency Limited (SANRAL) on its 2023/24 APP and budget.
The Committee could not engage with all of the Department’s entities prior to compiling this report due to limited meeting time before the scheduled Budget Vote Debate of the Department, however, it had received the Strategic/Corporate Plans and APPs from most of the entities of the Department, except the APPs/Corporate Plans of the Passenger Rail Agency of South Africa (PRASA) and the Road Accident Fund (RAF) at the time of the consideration of the APP and Budget of the Department.
This report provides an overview of the 2023/24 budget and APP of the Department.

It concludes by capturing the observations and recommendations made by the Committee in this regard.

The report on the budget of the Department is based on information accessed through: • The 2023 State of the Nation Address (SONA); 1 107 • The Department’s APP for 2022/23 and 2023/24 and its Budget Allocation outlined in the Budget Review for 2023/24; and • The National Development Plan (NDP).

2.
2.

MANDATE OF THE DEPARTMENT OF TRANSPORT The Constitution of the Republic of South Africa, 1996, identifies the legislative responsibilities of different levels of Government pertaining to airports, roads, traffic management and public transport.

At a policy level, the National White Paper on Transport, 1996, defines the infrastructure and operations of rail, pipelines, roads, airports, ports and the intermodal operations of public transport and freight.
To this effect, the function of transport, in its entire value chain, is legislated and executed at the three spheres of Government (national, provincial and local (municipal).

To ensure integrated planning and coordination between the three spheres of Government, the South African Inter-Governmental Relations Framework Act (No.

13 of 2005) emphasises that they are distinctive, interdependent and interrelated.

They are thus autonomous.


Notwithstanding their autonomy, the three spheres must plan together for the utilisation of scarce resources, as well as to ensure the achievement of Government priorities.

At a national level, the Department is responsible for the formulation of legislation and policies for all transport sub-sectors.
The Department is therefore entrusted with:1 • Conducting sector research; • Formulating legislation and policies to set the strategic direction of sub-sectors; • Assigning responsibilities to public entities and other spheres of Government; • Regulating through setting norms and standards; and • Monitoring implementation.

1 Department of Transport (2023), pp.

29-30.


2 108 The implementation of transport functions takes place through public entities that have been established to enhance implementation and support service delivery.

Each entity has a specific delivery mandate, as specified in its founding legislation.

The Department is tasked with the oversight of the regulation and delivery of transport through these entities.

The other leg of the implementation of transport functions lies with provinces.
In this regard, the Department has concurrent functions of public transport and transport regulation with provinces.

Public transport is a concurrent schedule 4A function between national and provincial spheres, and provincial roads and traffic are an exclusive schedule 5A provincial function.
To ensure that there is uniformity in planning and reporting towards the achievement of Government and/or sector priorities, the Department needs to coordinate the development and implementation of standardised/customised indicators.

These indicators, developed in consultation with all relevant stakeholders, must reflect key applicable deliverables of the sector plan and/or the Medium Term Strategic Framework (MTSF).
Once developed, accounting officers of relevant provincial departments that are responsible for the implementation of these indicators must then approve such prior to their inclusion in their respective Strategic Plans (SPs) and APPs.

Provinces would then gazette and report on standardised indicators on a quarterly and annual basis, with the National Department playing an oversight role over provinces.
This is intended to ensure that standardised indicators respond to the legislative and policy direction of the sector.

Commencing from the 2022/23 financial year, customised indicators for the transport sector had been finalised and were to be implemented by all provinces.

As part of oversight, the Department should receive reports from provinces on a quarterly basis.
Customised indicators were approved for implementation for the 2022/23 – 2024/25, in line with the performance period of the Strategic Plan.2 2 Department of Transport (2023), p. 30.

3 109 At a local (municipal) level, coordination and integration takes place through the development of integrated transport plans, which are facilitated through municipalities’ integrated development planning (IDP) processes.

Municipal transport is a concurrent schedule 4B function falling in the local government sphere.
Municipal roads, traffic and parking are exclusive 5B municipal functions.

2.1 ORGANISATIONAL STRUCTURE OF THE DEPARTMENT In an endeavour to discharge its mandate effectively and efficiently, the Department is structured as follows:3 • Programme 1: Administration; • Programme 2: Integrated Transport Planning; • Programme 3: Rail Transport; • Programme 4: Road Transport; • Programme 5: Civil Aviation Transport; • Programme 6: Maritime Transport; and • Programme 7: Public Transport.
The Department’s organisational structure was approved in September 2011, and it was implemented from November 2011.4 The structure comprises four transport modes (rail, road, civil aviation and maritime transport), as well as public transport and integrated transport planning.

Support functions, particularly in the Office of the Director-General (DG), Office of the Chief Operations Officer (COO) and the Office of the Chief Financial Officer (CFO) fall under the Administration programme.
3 Department of Transport (2023), p. 87.

4 Ibid.
4 110 2.2 STRATEGIC OUTCOMES ORIENTED GOALS OF THE DEPARTMENT The Department has identified the following eight (8) areas that it will continue to prioritise in 2023/24, in response to the MTSF (2019 – 2024):5 1) Safety (and security) as an enabler of service delivery; 2) Public transport that enables social emancipation and an economy that works; 3) Infrastructure build that stimulates economic growth and job creation; 4) Building a maritime nation, elevating the oceans economy; 5) Accelerating transformation towards greater economic participation; 6) Innovation that advances efficiencies and supports a continuous improvement model; 7) Environmental protection – Recovering and maintaining a healthy natural environment; and 8) Governance – Greater efficiency, effectiveness and accountability.
The Strategic Plan and the accompanying APP of the Department are aligned with the MTSF, and also articulate the long-term vision of the NDP 2030.
To that effect, the table below shows a schematic illustration of the alignment between the MTSF pillars, apex priorities of the 6th Administration and the strategic focus areas of the Department:6 Table 1: Alignment between the MTSF Pillars, Apex Priorities of the 6th Administration and the Strategic Focus Areas of the Department MTSF Pillars Apex Priorities Department’s 1.
Achieving a more capable State • Priority 1: A capable, ethical • Governance – and developmental State Greater efficiency, Strategic Focus Areas effectiveness and accountability 5 Department of Transport (2023), pp.

33-86.

6 Department of Transport (2023), pp.

28-29.


5 111 MTSF Pillars Apex Priorities Department’s Strategic Focus Areas • Priority 6: Social cohesion • Safety (and and community safety security) as an enabler of service delivery • Priority 7: A better Africa • Building a maritime and the world nation, elevating the oceans economy • Environmental protection – Recovering and maintaining healthy natural environment 2.
Driving a strong and inclusive • Priority 2: Economic • Infrastructure build economy transformation and job that stimulates creation economic growth and job creation • Building a maritime nation that, elevating the oceans economy • Accelerating transformation towards greater economic participation • Priority 5: Spatial • Public transport that integration, human enables social 6 112 MTSF Pillars Apex Priorities Department’s Strategic Focus Areas settlements and local emancipation and government an economy that works 3.
Building and strengthening • Priority 1: A Capable, • Governance – capabilities of South Africans ethical and developmental Greater efficiency, state effectiveness and accountability • Priority 3: Education, skills • Improved efficiency and health and effectiveness of support services (Source: Department of Transport (2023)) 2.3 PROGRAMME AND SUB-PROGRAMME PLANS (ANNUAL AND QUARTERLY TARGETS) 2.3.1 Programme 1: Administration The Administration programme provides leadership, strategic management and administrative support to the Department.
It achieves this through continuous refinement of organisational strategy and structure, in line with appropriate legislation and best practice.

For 2023/24, the planned annual and quarterly targets in the Administration programme are the following:7 Sub-Programme: DG Administration 7 Department of Transport (2023), pp.

104-119.
7 113 Table 2: Sub-Programme: DG Administration: Indicators, Annual and Quarterly Targets Functional, efficient and integrated government Percentage 100% - implementation of implementation the stakeholder plan of the 2 r e t r a u Q - stakeholder plan 3 r e t r a u Q - 4 r e t r a u Q Annual status report on the implementation of the stakeholder plan • 100% implementation Percentage responses 100% responses - Bi-Annual - Annual Report on to parliamentary to questions within parliamentary stipulated timelines questions Report on the status responses of to parliamentary questions • 100% responses within stipulated timelines the status responses of to parliamentary questions • 100% responses within stipulated timelines (Source: Department of Transport (2023)) Sub-Programme: Strategic Planning, Monitoring and Evaluation Table 3: Sub-Programme: Strategic Planning, Monitoring and Evaluation: Indicators, Annual and Quarterly Targets 8 114 2 r e t r a u Q - 3 r e t r a u Q - Functional, efficient and integrated government Revised DoT Approved - gender- Revised DoT responsive gender- Strategic Plan responsive approved by Strategic Plan Executive Authority (2020-2025) implemented 4 r e t r a u Q • Progress Report on the implementation of the Revised DoT gender- responsive Strategic Plan (2020- 2025) DoT gender- DoT gender- - - Draft APP • Approved DoT responsive responsive Annual Annual Performance Performance Plan approved by Plan (APP) Executive Authority (2024/25) approved 2024/25 submitted gender- responsive APP to the 2024/25 Department submitted to of Parliament for Planning, tabling Monitoring and Evaluation (DPME) DoT gender- DoT gender- Draft DoT Approved - - responsive responsive gender- DoT Annual Report Annual Report responsive gender- approved by (2022/23) Annual responsive Executive Authority tabled in Report Annual Parliament (2022/23) Report submitted to (2022/23) 9 115
 the Office of submitted the Auditor- to General of Parliament South Africa for tabling (AGSA) (Source: Department of Transport (2023)) Sub-Programme: Chief Audit Executive (CAE) Table 4: Sub-Programme: CAE: Indicators, Annual and Quarterly Targets Functional, efficient and integrated government Percentage 95% resolution of - Bi-Annual - Annual Report resolution of reported incidents reported incidents of of corruption corruption Report on the status of reported on the status of reported incidents of incidents of corruption in the corruption in the DoT DoT (Source: Department of Transport (2023)) Sub-Programme: Human Resource Management and Development 10 116 Table 5: Sub-Programme: Human Resource Management and Development: Indicators, Annual and Quarterly Targets Functional, efficient and integrated government 3 r e t r a u Q 4 r e t r a u Q Number of 90 posts filled 25 posts filled 25 posts filled 20 posts filled 20 posts filled vacant positions filled Ethics Operations of - Bi-Annual - committees departmental established and ethics operationalised committees monitored Report on the operations of ethics committee in the Department Annual Report on the operations of ethics committee in the Department % of employees 30% of 5% of 15% of 25% of 30% of trained, in line employees employees employees employees employees with the trained exposed to exposed to exposed to exposed to Workplace Skills Plan (WSP) skills-based skills-based skills-based skills-based training, as per training, as per training, as per training, as per the WSP the WSP the WSP the WSP Number of 160 bursaries - (First Bi-Annual - (Second Annual Report bursaries managed managed semester
 Report on the semester on the status of advertisement status of advertisement existing of bursaries existing of bursaries bursaries issued) bursaries issued) Implementation Annual status Appointment Quarterly Quarterly Annual Status of the report on the and placement Status Report Status Report Report on the internship implementation of interns on the on the implementation programme of the completed Implementation Implementation of the 11 117 r o t a c i d n I t u p t u O l a u n n A t e g r a T internship programme of Internship of Internship Internship Programme Programme Programme • 50 interns • 50 interns employed employed and placed and placed (Source: Department of Transport (2023)) Sub-Programme: Budgeting and Compliance Table 6: Sub-Programme: Budgeting and Compliance: Indicators, Annual and Quarterly Targets Functional, efficient and integrated government Percentage 100% - implementation of implementation action plans to of action plans address finding audit to address audit finding 2 r e t r a u Q - 12 3 r e t r a u Q 4 r e t r a u Q Action Annual Report plans to on the address implementation audit of action plans findings to address audit raised by findings raised the by the AGSA AGSA for for the 2022/23 the financial year 2022/23 118 financial year developed Percentage 100% - Bi-Annual - Annual Report reduction in cases reduction of fruitless and (elimination) of wasteful cases of expenditure fruitless and wasteful expenditure Report on fruitless and wasteful expenditure in the Department on fruitless and wasteful expenditure in the Department Percentage 75% reduction - Bi-Annual - Annual Report reduction in cases of cases of of irregular irregular expenditure expenditure Report on irregular expenditure
 in the Department on fruitless and wasteful expenditure in the Department Percentage 100% - Bi-Annual - Annual Report reduction of cases reduction of unauthorised (elimination) of expenditure cases of unauthorised expenditure (Source: Department of Transport (2023)) Report on unauthorised expenditure in the Department on unauthorised expenditure in the Department Sub-Programme: Financial Administration and Supply Chain Management 13 119 Table 7: Sub-Programme: Financial Administration and Supply Chain Management: Indicators, Annual and Quarterly Targets Functional, efficient and integrated government Percentage 100% - Bi-Annual - Annual compliance to 30-day compliance to payment requirement 30-day payment requirement (Source: Department of Transport (2023)) Report on compliance to the 30- day payment requirement Report on compliance to the 30-day payment requirement 2.3.2 Programme 2: Integrated Transport Planning The Integrated Transport Planning programme seeks to integrate and harmonise key transport sector strategic interventions through continuous development and refining of macro-transport sector policies, strategies and legislation; coordination of development of sector related policies, coordination of sector research activities; coordination of regional and inter-sphere relations; facilitation of sector transformation; and provision of sector economic modelling and analysis.
For the 2023/24 financial year, the Department has set itself the following annual and quarterly targets in the Integrated Transport Planning programme:8 8 Department of Transport (2023), pp.

120-132.
14 120 Sub-Programme: Research and Innovation Table 8: Sub-Programme: Research and Innovation: Indicators, Annual and Quarterly Targets Reduction in Greenhouse Gas Emissions and Pollution Transport Sector Draft Transport Concept Note Gap Analysis Inception Draft Just Transition Sector Just on the on the Report for the Transport Plan approved by Transition Plan Transport Transport development of Sector Just Cabinet developed Sector Just Sector Just the Transport Transition Transition Plan Transition Plan Sector Just Plan conducted conducted Transition Plan developed developed Implementation Framework for Public Public Public Report on of the Carbon Electrical awareness awareness awareness public Emission Transition monitored Vehicle campaigns campaigns campaigns awareness on Regulation conducted on conducted on conducted on the published the Framework the Framework the Framework Framework for Electrical for Electrical for Electrical for Electric • Public Vehicles (EVs) Vehicles (EVs) Vehicles (EVs) Vehicles awareness campaigns Regulations - Regulations - Regulations - (EV) (Three (03) (Three (03) (Three (03) Regulations conducted on provinces) provinces) provinces) developed approved Framework for Electric Vehicles 15 121 (EV) Regulations (Source: Department of Transport (2023)) Sub-Programme: Modelling and Economic Analysis Table 9: Sub-Programme: Modelling and Economic Analysis: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets Economic Regulation Transport - (NCOP - (NCOP - (NCOP - (NCOP of Transport (ERT) Economic Process) Process) Process) Process) Bill approved by Regulator Parliament (TER) established Economic Transport Regulation Economic of Transport Regulator (ERT) Bill established9 approved by the NCOP Regulations Draft Draft - of the Regulations Regulations Regulations of the Transport 9 The establishment of the TER is dependent on the approval of the TER Bill by Parliament and subsequent assent of the Bill into law.
16 122 r o t a c i d n I t u p t u O l a u n n A t e g r a T Transport 1 r e t r a u Q of 2 r e t r a u Q 3 r e t r a u Q the of the Economic Transport Transport Regulator Economic Economic (TER) Act Regulator Regulator developed (TER) Act (TER) Act developed finalised 4 r e t r a u Q Economic Regulator (TER) Act approved (Source: Department of Transport (2023)) 4.2.3 Sub-Programme: Regional Integration Table 10: Sub-Programme: Regional Integration: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets Regional Integration Regional Regional - (Cabinet - (Cabinet - (Cabinet Strategy approved by Integration Integration Processes) Processes) Processes – Cabinet Strategy Strategy approved by submitted Cabinet to Cabinet (Source: Department of Transport (2023)) 17 Regional Integration Strategy approved by Cabinet) 123 Sub-Programme: Freight Logistics Table 11: Sub-Programme: Freight Logistics: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 3 r e t r a u Q 4 r e t r a u Q Freight Migration Freight Freight Intervention Freight Annual Status Plan (Road to Migration Plan Migration Analysis Report Migration Report on the Rail) developed (Road to Rail) Information to guide Plan (Road migration of finalised Hub Implementation to Rail) freight from established to Plan developed approved road to rail • Annual conduct gap Status Report analysis developed on the migration of 10% of freight from road to rail (Source: Department of Transport (2023)) 2.3.3 Programme 3: Rail Transport The Rail Transport programme facilitates and coordinates the development of sustainable rail transport policies, rail economic and safety regulation, infrastructure development strategies; and systems that reduce system costs and improve customer service.
The programme also monitors and oversees the Railway Safety Regulator (RSR) and the Passenger Rail Agency of South Africa (PRASA).

In addition, it seeks to ensure that the implementation of integrated rail services is planned through the lowest competent sphere of Government.
18 124 The planned annual and quarterly targets in the Rail Transport programme in the 2023/24 financial year are as follows:10 Sub-Programme: Rail Regulation Table 12: Sub-Programme: Rail Regulation: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Safer Transport Systems Railway Railway (Parliamentary (Parliamentary (Parliamentary Bi-Annual Status Safety Bill Safety Bill Processes) Processes) Processes) Report on the approved by approved by Parliament Parliament Status Report on the Railway Safety Bill progression in Parliament Railway Safety Bill progression in Parliament Status Report on the Railway Safety Bill progression in Parliament Competitive and Accessible Markets National Rail National Stakeholder Stakeholder National Rail National Rail Bill Bill Rail Bill consultations inputs Bill submitted to submitted to approved by approved for conducted on the considered and Department of Economic Parliament submission National Rail incorporated in Planning, Sectors, to Cabinet Bill the Draft Monitoring Investment, Evaluation Employment and 10 Department of Transport (2023), pp.
133-149.
19 125 National Rail (DPME) for Infrastructure Bill Socio-Economic (ESIEID) Cluster Impact Assessment National Rail Bill (SEIAs) process approved (final phase) submission for to Cabinet (Source: Department of Transport (2023)) Sub-Programme: Rail Infrastructure and Industry Development Table 13: Sub-Programme: Rail Infrastructure and Industry Development: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Private Sector PSP Framework PSP Governance PSP Stakeholder Stakeholder Participation (PSP) Implementation documents Framework consultations inputs Framework Plan developed developed Implementation conducted on considered and approved by Cabinet 20 Plan developed the Draft PSP incorporated in Framework PSP Implementation Framework Plan Implementation Plan 126 High-Speed Rail HSR Corridor HSR Corridor Preliminary Stakeholder Stakeholder (HSR) Corridor Framework Framework matrix of HSR engagements inputs Framework Implementation Implementation corridor conducted on considered and approved by Plan developed Plan developed prioritisation the HSR incorporated in Cabinet developed Corridor the HSR of Annual Final (2022/23) - Bi-Annual Preliminary Framework Implementation Implementation Plan Plan Number correctly Monitoring Report Annual configured train on the General Monitoring (2023/24) Annual Monitoring (2023/24) sets (old and new) Overhaul Report on the Report on the Monitoring Programme General Overhaul General Report of the Programme Overhaul General Programme Overhaul Programme (2023/24) • 215 configured • 131 • 215 • 215 train sets configured train sets (67 old trains, 64 new trains) configured configured train sets train sets Number of
 jobs Annual Final (2022/23) - Bi-Annual Preliminary created through Monitoring Report Annual PRASA on jobs created Monitoring (2023/24) Annual Monitoring (2023/24) Infrastructure through PRASA Report on jobs Report on jobs Report on jobs Programmes created through created through created through 21 127 Infrastructure PRASA Programmes Infrastructure Programmes PRASA PRASA Infrastructure Infrastructure Programmes Programmes • 3 000 direct • 3 288 direct • 3 000 direct • 3 000 jobs jobs jobs direct jobs Commuter Train Commuter Train Stakeholder Business case Market Draft Manufacturing Manufacturing consultations for the Demand Commuter Master Plan Master Plan conducted on the development of Analysis Train developed developed Commuter Train the Commuter conducted on Manufacturing Manufacturing Train the Commuter Master Plan Master Plan Manufacturing Train developed Master Plan Manufacturing Master Plan • PRASA • Department of Trade, Industry and Competition (DTIC) Number of new Annual Final Annual - 2023/24 Bi- Preliminary electric multiple Monitoring Report (2022/23) unit (EMU) train on the Rolling Monitoring Annual Annual Monitoring (2023/24) sets manufactured Stock Fleet Report on the Report on the Monitoring Renewal Rolling Stock Rolling Stock Report of the Programme Fleet Renewal Fleet Renewal Rolling Stock Programme Programme Fleet Renewal Programme (2023/24) 22 128 • 52 EMU train • 40 EMU train • 52 EMU • 52 EMU sets sets train sets train sets % completion of Annual Final Annual Bi-Annual Preliminary the PRASA Monitoring Report (22/23) Signalling on PRASA Rail Monitoring (23/24) Annual Monitoring (2023/24) Improvement Signalling Report on PRASA Report on Monitoring Programme Improvement Rail Signalling PRASA Rail Report on Programme:
 Improvement Signalling PRASA Rail Programme • Testing and commissioning of six (6) line Improvement Signalling Programme Improvement Programme Number of stations Annual Final (2022/23) - Bi-Annual Preliminary revitalised (through Monitoring Report Annual on the Station Monitoring (2023/24) Annual Monitoring (2023/24) functionality Modernisation Report on the Report on the Monitoring improvements, Programme Station Station Report of the rebuilding and commercialisation) Modernisation Programme Modernisation General Programme Overhaul • 50 stations • 187 stations • 50 stations • 50 stations (Source: Department of Transport (2023)) Programme (2023/24) Sub-Programme: Rail Operations 23 129 Table 14: Sub-Programme: Rail Infrastructure and Industry Development: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Number of rail Annual Final (2022/23) - corridors Monitoring Annual Monitoring Bi-Annual (2023/24) Preliminary Annual (2023/24) rehabilitated Report on the Report on the Rail Monitoring Report Monitoring Rail Corridor Corridor Recovery on the Rail Report on the Rail Recovery Programme Corridor Recovery Corridor Programme Programme Recovery Programme • Eighteen • Thirteen (13) • Eighteen (18) • Eighteen (18) (18) PRASA lines PRASA lines PRASA lines PRASA recovered recovered recovered lines in operation Public Transport Number of Annual Final (2022/23) - PRASA rail Monitoring Annual Monitoring Bi-Annual (2023/24) Preliminary Annual (2023/24) passenger trips Report on Report on PRASA Monitoring Report Monitoring PRASA Rail Rail Passenger on PRASA Rail Report on the Passenger Trips Passenger Trips PRASA Rail Trips • 18 million rail passenger trips 24 Passenger Trips • 13 million rail • 18 million rail passenger trips passenger trips 130 r o t a c i d n I t u p t u O l a u n n A t e g r a T Safer Transport Systems 1 r e t r a u
t e g r a T Safer Transport Systems PRASA Rail Annual Final (2022/23) - Safety Monitoring Annual Monitoring Bi-Annual (2023/24) Preliminary Annual (2023/24) Occurrences Report on the Report on the Monitoring Report Annual number of number of reported on the number of Monitoring reported rail rail safety reported rail safety Report on the safety occurrences occurrences occurrences Percentage 100% Final (2022/23) - implementation implementation Annual Monitoring Bi-Annual (2023/24) of rail number reported safety occurrences Preliminary Annual (2023/24) of the national of the national Report on the Monitoring Report Monitoring strategic plan to strategic plan to implementation of on the national Report on the end gender- end gender- the national strategic plan to national strategic based violence based violence strategic plan to end gender-based plan to end and femicide in and femicide in end gender-based violence and gender-based the rail the rail violence and femicide in the rail violence and transport sector transport sector femicide in the rail transport sector femicide in the (Metrorail (Metrorail transport sector operations) operations) (Metrorail (Metrorail operations) (Source: Department of Transport (2023)) operations) rail transport sector (Metrorail operations) 2.3.4 Programme 4: Road Transport 25 131 The Road Transport programme develops and manages an integrated road infrastructure network.
In addition, the programme regulates road transport, and ensures safer roads.

Finally, it oversees road agencies.
For 2023/24, the planned annual and quarterly targets in the Road Transport programme are the following:11 4.4.1 Sub-Programme: Road Transport Regulation Table 15: Sub-Programme: Road Transport Regulation: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Safer Transport Systems Percentage Annual Final Annual Final (2023/24) Final (2023/24) Final (2023/24) reduction of Monitoring (2022/23) Analysis Quarter One (Q1) Quarter Two Quarter Three road crash Report on the Monitoring Report Analysis (Q2) Analysis (Q3) Analysis fatalities implementation of on the Monitoring Report Monitoring Monitoring the National Road implementation of on the Report on the Report on the Safety Strategy the National Road implementation of implementation implementation (NRSS) Safety Strategy the National Road of the National of the National (NRSS) developed Safety Strategy Road Safety Road Safety • 5% reduction (NRSS) developed Strategy Strategy (NRSS) from the 2019 baseline - reduction of 646 fatalities 11 Department of Transport (2023), pp.
150-171.
26 (NRSS) developed developed 132 (nationwide) per annum Turnaround • 14 days - Bi-Annual - time issuance for of driving licence card Number of Annual Status - provinces Report on the achieving number of classification provinces of road traffic achieving policing as 7- classification of day, 24-hour road traffic job policing as a 7- day, 24-hour job • Five (05) provinces Monitoring Report on the turnaround time for issuance of driving licence cards Bi-Annual Status - Report on the of number provinces achieving classification of road traffic policing as a 7- day, 24-hour job Annual Monitoring Report on the turnaround time for issuance of driving licence card Annual Status Report on the number of provinces achieving classification of road traffic policing as a 7- day, 24-hour job General Laws Draft General Draft General Laws Internal Internal Final quality Amendment Laws Amendment Amendment Bill consultations stakeholder vetting of the Bill approved Bill finalised reviewed and conducted on the comments Draft General by Parliament incorporation of Draft General Laws considered and Laws comments completed Amendment Bill incorporated Amendment Bill into the Draft conducted and General Laws draft Bill finalised 27 133 • Selected DoT Amendment Branches Bill • DoT Executive Committee Road Traffic Annual Status Consolidation of Consolidation of Stakeholder Stakeholder Law Report to the Driving License DLCA and RTIA consultations comments Enforcement integration of Card Account assets and liabilities conducted on considered and Entities Road Traffic Law (DLCA) and Road finalised and a final the an Annual Status integrated into Enforcement Traffic consolidated report Consolidated Report to the one Entities Infringement developed DLCA and integration of developed Agency (RTIA) RTIA Assets Road
 Traffic assets and liabilities and Liabilities Law initiated Report Enforcement • Department Entities of Labour, developed and • National Treasury National Road Annual Status (Parliamentary (Parliamentary (Parliamentary (Parliamentary Traffic (NRT) Report on the Processes) Processes) process - processes - Amendment National Road Bill approved Traffic by Parliament Amendment Act National Road National Road Traffic Traffic (NRT) Amendment Act Amendment Bill • Regulations of • Regulations of approved by proclaimed) the National the National Road Traffic Road Traffic Parliament) 28 134 Amendment Amendment Act gazetted Act gazetted (Source: Department of Transport (2023)) Sub-Programme: Road Infrastructure and Industry Development Table 16: Sub-Programme: Road Infrastructure and Industry Development: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 2 r e t r a u Q Percentage • 100% Annual (2022/23) - compliance compliance at Status Report on with the user- conventional compliance with pay principle toll plazas the user-pay • Gauteng principle 3 r e t r a u Q - Freeway Improvement Project (GFIP) Funding and Tariff Structure finalised 4 r e t r a u Q Preliminary Annual (2023/24) Status Report on compliance with the user- pay principle Road Draft Road Stakeholder Final Socio- Draft Road Draft Road Infrastructure Infrastructure consultations Economic Infrastructure Infrastructure Funding Policy Funding Policy conducted on the Impact Funding Policy Funding Policy 29 135 approved by approved for Draft Road Assessment submitted to the approved for Cabinet Draft submission to Infrastructure (SEIAs) Economic Sectors, submission to Road Cabinet Funding
 Policy conducted on Investment, Cabinet Infrastructure Funding Policy approved for the draft Road Employment and Infrastructure Infrastructure Funding Development Policy (ESIEID) Cluster Kilometres of Annual Monitoring Final 2022/23 Final 2023/24 Final 2023/24 Final 2023/24 the national Report on the Annual Monitoring Quarter One Quarter Two (Q2) Quarter Three road network SANRAL Road Report on the (Q1) Monitoring Report (Q3) maintained / Maintenance SANRAL Road Monitoring on the SANRAL Monitoring upgraded/ Programme Maintenance Report on the Road Maintenance Report on the expanded Programme SANRAL Programme SANRAL • 23 563 km Road Maintenance Programme Road Maintenance Programme (2023/24) 2023/24 Bi-Annual 2023/24 Monitoring Report Preliminary on the SANRAL Annual Road Maintenance Monitoring Programme Report on the SANRAL Road Maintenance Programme 30 136 • Cumulative Q1 • Cumulative and Q2 Report Q1, Q2 and Q3 Report % of provincial Annual Monitoring Final Annual Final Final (2023/24) Final road network Report on the (2022/23) (2023/24) Quarter Two (Q2) (2023/24) maintained Provincial Road Monitoring Report Quarter One Monitoring Report Quarter Three Maintenance on the Provincial (Q1) on the Provincial (Q3) Programme Road Maintenance Monitoring Road Maintenance Monitoring • 5% of the Programme Report on the Programme Report on the provincial road network maintained Provincial Road Maintenance Programme Bi-Annual (2023/24) Provincial Road Maintenance Programme Preliminary Annual Monitoring Report (2023/24) on the Provincial Monitoring Road Maintenance Report on the Programme Provincial Road Maintenance Programme • Cumulative Q1 • Cumulative and Q2 Report Q1, Q2 and Q3 Report National Annual Monitoring Final Annual - Bi-Annual Preliminary Pothole Repair Report on the (2022/23) (2023/24) Report Annual 31 137 r o t a c i d n I t u p t u O l a u n n A t e
137 Programme National Pothole Monitoring Report on the National (2023/24) (Vala Zonke) Repair Programme on the National Pothole Programme Monitoring Report on the National Pothole Repair Programme implemented Pothole Repair programme • Issuance of a revised PRMG Practice Note • Revision and updating of PRMG Formula • Updating of the S’hamba Sonke Programme Implementation Plan • Vala Zonke Funding Plan Number of Annual Monitoring Final Annual - Bi-Annual Preliminary bridges Report on the (2022/23) (2023/24) Report Annual constructed Welisizwe Rural Monitoring Report on the Welisizwe (2023/24) through the Bridges on the Welisizwe Rural Bridges Monitoring Welisizwe Programme Rural Bridges Programme Report on the Rural Bridges Programme Programme Welisizwe Rural Bridges Programme 32 138 • 48 bridges • 24 bridges • 48 bridges • 48 bridges completed completed completed completed • 24 bridges in planning and construction stages Number of jobs Annual Monitoring Final Annual - created through Report on jobs (2022/23) Bi-Annual (2023/24) Preliminary Annual public created through the Monitoring Report Monitoring Report (2023/24) infrastructure SANRAL Road on jobs created on jobs created Monitoring projects Maintenance through the through the Road Report on jobs (SANRAL Programme SANRAL Road Maintenance created Road Maintenance Maintenance Programme Programme through the SANRAL Programme) • 12 000 jobs • 12 000 jobs Road Number of jobs Annual Monitoring Final Annual - created through Report on jobs (2022/23) Bi-Annual (2023/24) Maintenance Programme • Cumulative Q1, Q2 and Q3 Preliminary Annual public created through the Monitoring Report Monitoring Report (2023/24) infrastructure Provincial Road on jobs created on jobs created Monitoring projects Maintenance through the through the Report
 on jobs (Provincial Programme Provincial Road Provincial Road created Road 33 through the 139 l a u n n A t e g r a T r o t a c i d n I t u p t u O Maintenance Programme) 1 r e t r a u Q Maintenance Programme • 165 584 jobs 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Maintenance Provincial Programme Road • 165 584 jobs Maintenance Programme • Cumulative Q1, Q2 and Q3 Number of jobs Annual Monitoring Final Annual - Final Annual Preliminary created through Report on jobs (2022/23) (2023/24) Annual Welisizwe created through Monitoring Report Monitoring Report (2023/24) Rural Bridges Welisizwe Rural on jobs created on jobs created Monitoring Programme Bridges through the through the Report on jobs Programme Welisizwe Rural Welisizwe Rural created Bridges Programme Bridges through the Programme Welisizwe • 6 270 jobs • 6 270 jobs • 6 270 jobs (Source: Department of Transport (2023)) Rural Bridges Programme Sub-Programme: Road Engineering Standards Table 17: Sub-Programme: Road Engineering Standards: Indicators, Annual and Quarterly Targets 34 140 Competitive and Accessible Markets 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Rehabilitation Annual Final Annual - Bi-Annual Preliminary of flood- Monitoring (2022/23) (2023/24) Annual (2023/24) damaged Report on the Monitoring Monitoring Monitoring Infrastructure Rehabilitation Report on the Report on the Report on the monitored of flood- rehabilitation of rehabilitation of rehabilitation of damaged floods-damaged flood-damaged flood-damaged infrastructure infrastructure infrastructure infrastructure Road inventory Provincial and Final Annual - Bi-Annual Preliminary data monitored municipal (2022/23) (2023/24) Annual (2023/24) and analysed Road Asset Analysis Report Analysis Report Analysis Reports Management on Road Asset on Road Asset on Road Asset (RAMS) data Management Management Management analysed System System System (Source: Department of
 Transport (2023)) 2.3.5 Programme 5: Civil Aviation Transport The Civil Aviation Transport programme facilitates the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards through regulations and investigations.
It also oversees aviation public entities.
35 141 The Department has set itself the following annual and quarterly performance targets in the Civil Aviation Transport programme in the 2023/24 financial year:12 Sub-Programme: Aviation Policy and Regulation Table 18: Sub-Programme: Aviation Policy and Regulation: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets Revised National Draft National Cost-Benefit Draft Draft National - Civil Aviation Civil Aviation Analysis for National Civil Aviation Policy approved by Policy Socio- Civil Policy Cabinet submitted to Economic Aviation submitted to Cabinet Impact Policy the Economic Assessment submitted to Sectors, (SEIAs) DPME for Investment, conducted on SEIAs Employment the Draft process and National Civil Aviation Policy Infrastructure Development (ESIEID) Cluster Draft National Civil Aviation 12 Department of Transport (2023), pp.
172-177.
36 142 Policy submitted to the Justice, Crime Prevention and Security (JCPS) National Airports Draft Updated Internal Stakeholder Stakeholder Draft Updated Development Plan NADP review and consultations inputs NADP finalised (NADP) approved developed update of the conducted considered by Cabinet NADP on the Draft and the NADP (Source: Department of Transport (2023)) conducted Updated updated NADP Sub-Programme: Aviation Safety, Security, Environment and Search and Rescue Table 19: Sub-Programme: Aviation Safety, Security, Environment and Search and Rescue: Indicators, Annual and Quarterly Targets Safer Transport Systems Percentage reduction Annual Final (2022/23) - Bi-Annual Preliminary in fatal accidents in the (2023/24) Annual (2023/24) Annual Aviation sector Monitoring Monitoring Monitoring (2023/24) 37 143 Report on the Report on the Report on the Monitoring implementation implementation of implementation Report on the of the Aviation the Aviation of the Aviation implementation Safety Strategy Safety Strategy Safety Strategy of the Aviation • 25% reduction in fatal accidents in General Aviation Safety Strategy An independent ASIB Board Publish adverts in Application Approval of the Shortlisting of Aviation Safety established Media and Shortlisting potential Investigation Board (ASIB) established • Consultation nomination Panel by the candidates for with National of ASIB Minister recommendation Treasury for Board Category members Classification facilitated to Parliament Aeronautical and Draft SEIAs conducted - Draft AMSAR Draft AMSAR Maritime Search and Aeronautical on the Draft Bill submitted to Bill approved for Rescue Bill approved and Maritime AMSAR Bill the
 JCPS Cluster submission to by Parliament Search and Cabinet Rescue (AMSAR) Bill approved for submission to Cabinet 38 Draft AMSAR Bill submitted to the JCPS Cluster Draft AMSAR Bill submitted to the International 144 Cooperation, Trade and Security (ICTS) Cluster Draft AMSAR Bill submitted to the ESIEID Cluster (Source: Department of Transport (2023)) Sub-Programme: Aviation Economic Analysis and Industry Development Table 20: Sub-Programme: Aviation Economic Analysis and Industry Development: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Reviewed Draft - Development of the Stakeholder Draft Reviewed National Aviation Reviewed National Transformation Aviation inception report for consultations on National Aviation affirmation of project the Draft Transformation brief and outlining of National Civil Strategy finalised Strategy Transformation timeframes Aviation approved by Strategy Cabinet finalised 39 Transformation Strategy 145 Development of the Status Quo Report to review the draft Civil Aviation Transformation Strategy Number of jobs Annual Final Annual - Bi-Annual Preliminary created through Monitoring (2022/23) Monitoring Annual (2023/24) the ACSA (2023/24) Monitoring Report on jobs Monitoring Infrastructure Report on jobs Report on supported Report on jobs Programme created through jobs created through the supported through ACSA through the ACSA ACSA Infrastructure ACSA Infrastructure Infrastructure Programme Infrastructure Programme Programme Programme • 18 275 jobs • 17 064 • 18 275 jobs • 18 275 jobs (Source: Department of Transport (2023)) jobs 2.3.6 Programme 6: Maritime
 Transport The Maritime Transport programme implements the Comprehensive Maritime Transport Policy (CMTP) to ensure promotion and coordination; as well as infrastructure and industry development and achieve compliance through monitoring, evaluation and oversight and collaboration with maritime related public entities, namely, the Ports Regulator (PRSA), National Ports Authority; South African Maritime Safety Authority (SAMSA) industry and international bodies.
40 146 The set annual and quarterly targets in the Maritime Transport programme for the 2023/24 financial year are as follows:13 Sub-Programme: Maritime Policy and Legislation Table 21: Sub-Programme: Maritime Policy and Legislation: Indicators, Annual and Quarterly Targets Competitive and Accessible Markets 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q National Ports Draft National SEIAs Stakeholder Draft National Draft National Amendment Ports conducted on the consultations Ports Amendment Ports Bill approved Amendment Draft National conducted on the Bill submitted to Amendment by Parliament Bill developed Ports Draft National the State Law Bill finalised Amendment Bill Ports Advisers Amendment Bill Maritime Draft Maritime - (Cabinet - (Cabinet - (Cabinet Draft Maritime Development Development Processes) Processes) Processes) Development Fund Bill Fund Bill approved by Cabinet (Source: Department of Transport (2023)) Fund Bill approved by Cabinet Sub-Programme: Maritime Infrastructure and Industry Development 13 Department of Transport (2023), pp.
191-198.
41 147 Table 22: Sub-Programme: Maritime Infrastructure and Industry Development: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Competitive and Accessible Markets Operation Annual Monitoring Final Annual - - Preliminary Annual Phakisa Oceans Report on the (2022/23) Economy Three- implementation of the Monitoring Foot Plan Operation Phakisa Report on the monitored Oceans implementation Economy Three-Foot of the Operation Plan • Boat Phakisa Oceans Economy Three- Manufacturing Foot Plan Master Plan developed (2023/24) Monitoring Report on the implementation of the Operation Phakisa Oceans Economy Three-Foot Plan National Shipping Business Case for a Draft Business case - Business case for National Shipping Memorandum of for a National National Shipping Company Company submitted to Understanding Shipping established Cabinet (MoU) between Company Company approved for submission to DoT and developed Cabinet Annual Status Report Development on the Boegoebaai Bank of South Port and Small Africa (DBSA) Harbours development developed Transport Corporatisation of the - Bi-Annual - Annual Status Report National Ports TNPA Authority (TNPA) 42 Status Report on the on the Corporatisation of the TNPA 148 corporatized in implemented in line line with with the National Ports provisions of the Act, 2005 National Ports Act (2005) 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Corporatisation of the TNPA Investment Annual Status Report - - - Annual Status Report unlocked in new on investment and existing port unlocked in new and infrastructure existing port (for boat infrastructure building, ship & • R14.6 billion offshore vessels Sector GDP construction, oil contribution rig and ship repair facilities on investment unlocked in new and existing port infrastructure • R14.6 billion Sector GDP contribution Number of jobs Annual Status Report - - - Annual
 Status Report created through on jobs created Maritime Transport through Maritime Transport Manufacturing Manufacturing Initiative Initiatives • 50 000 jobs created on jobs created through Maritime Transport Manufacturing Initiatives • 50 000 jobs created % localisation of Annual Status Report - - - Annual Status Report the Maritime on the localisation of Transport the MTM supply chain 43 on the localisation of 149 r o t a c i d n I t u p t u O Manufacturing (MTM) supply l a u n n A t e g r a T chain • 60% localisation the MTM supply chain • 60% localisation Number of Annual Status Report - - - Annual Status Report vessels on vessels registered registered on the on the South African South African Ship Register Ship Register for • 10 vessels coastal and international shipping developed (Source: Department of Transport (2023)) on vessels registered on the South African Ship Register • 10 vessels Sub-Programme: Maritime Implementation, Monitoring and Evaluation Table 23: Sub-Programme: Maritime Implementation, Monitoring and Evaluation: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Safer Transport Systems % reduction in Annual Monitoring Final Annual - Bi-Annual Preliminary Maritime Safety Report on Maritime (2022/23) Incident Rate Safety Accidents Monitoring (2023/24) Annual Monitoring (2023/24) and Incidents Report Maritime Report on Monitoring 44 150 Safety Accidents and Incidents • 50% reduction from the 2019 baseline Maritime Safety Report on Accidents and Maritime Incidents Safety Accidents and Incidents • 50% • 50% reduction reduction from 2019 baseline the from the 2019 baseline Reduction in GHG Emissions and Pollution % reduction in Annual Monitoring Final Annual -
 Bi-Annual Preliminary Maritime Report on Maritime (2022/23) Pollution Rate Pollution Rate Monitoring (2023/24) Annual Monitoring (2023/24) Report on Report on the Monitoring Maritime Pollution Rate Maritime Report on the Pollution Rate Maritime Pollution Rate • 50% reduction • 50% reduction • 50% • 50% from the 2019 from the 2019 reduction reduction from 2019 baseline the from the 2019 baseline baseline baseline (Source: Department of Transport (2023)) 2.3.7 Programme 7: Public Transport 45 151 The Public Transport programme ensures the provision and regulation of safe, secure, reliable, cost-effective and sustainable public transport services in South Africa through legislation, policies and strategies.
The Department has set itself the following annual and quarterly performance targets in the Public Transport programme in 2023/24:14 Sub-Programme: Public Transport Network Development Table 24: Sub-Programme: Public Transport Network Development: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Public Transport Number of cities Status Report on Concept Report Draft Review Stakeholder Final Review assisted in the review of the on the review of Report of the Consultations Report of the planning and Integrated Public the IPTN IPTN conducted on the IPTN Approach operating Transport Approach Approach Draft Review developed integrated public Network (IPTN) developed developed Report of the transport networks Approach IPTN Approach Ten (10) cities Bilateral progress Bilateral Bilateral Bilateral progress assisted in engagements progress progress engagements planning and conducted in five engagements engagements conducted in five operating (05) selected conducted in conducted in five (05) selected integrated public operating cities five (05) (05) selected operating cities transport networks selected operating cities 14 Department of Transport (2023), pp.
209-221.
46 152 operating cities 4 r e t r a u Q Annual Report on - Bi-Annual - the status of readiness for the re-admission of the three (3) cities into the Public Transport Network Grant (PTNG) Report on the status of readiness for the re- admission of the three (3) cities into the PTNG Annual Report on the status of readiness for the re-admission of the three (3) cities into PTNG Number of 180 000 average (Average week Bi-Annual (Average week Preliminary average weekday weekday day passenger trip Monitoring day passenger Annual (2023/24) passenger trips in database Report on trip database Monitoring passenger trips ten (10) cities updated)15 average updated) Report on average across cities operating IPTNs weekday passenger trips in operating cities Revised BRT Implementation of Final Annual - - specifications the IPTN norms (2022/23) and technical and standards Monitoring norms and monitored in ten Report on the standards (10) cities implementation of weekday passenger trips in operating cities 2023/24 Preliminary Annual Monitoring Report on the implementation of 15 Updating of the database is not a performance target.
Quarter 1 and Quarter 3 are thus zero-targeted.
47 153 r o t a c i d n I t u p t u O implemented in ten (10) cities IPTNs norms and standards Percentage 75% compliance - - - compliance with with spatial spatial referencing of referencing on IPTN Programme IPTN Programme Percentage 100% compliance - - - compliance with with universal universal design design norms and norms and standard standards • Ten (10) operating cities Operating hours 20 hours - - - of BRTs 48 IPTNs norms and standards 2023/24 Preliminary Annual Monitoring Report on the compliance with spatial referencing of IPTN Programme developed 2023/24 Preliminary Annual Monitoring Report on IPTN programme compliance with universal design norms and standards 2023/24 Preliminary Annual Monitoring Report on 154 Competitive and Accessible Markets Number of jobs Annual - - - created through Monitoring the Integrated Report on jobs Public Transport created through Networks the IPTN Programme Programme • 2 000 jobs Innovation operational hours of BRTs 2023/24 Preliminary Annual monitoring Report on jobs created through the IPTN Programme Integrated Pilot Pilot phase roll Pilot phase Pilot phase roll Pilot phase of Single Ticketing implementation of out of Integrated roll out of out of Integrated Integrated Single System the Integrated Single Ticketing Integrated Single Ticketing Ticketing System approved and Single Ticketing System monitored Single System on subsidised implemented System rolled out in two (02) cities Ticketing monitored in two public transport on subsidised public transport operations System (02) cities operations monitored in two (02) cities implemented (Source: Department of Transport (2023)) Sub-Programme: Public Transport Regulation Table 25: Sub-Programme: Public Transport Regulation: Indicators, Annual and Quarterly Targets 49 155 r o t a c i d n I t u p t u O l a u n n A t e g r a T
Public Transport 2 r e t r a u Q 3 r e t r a u Q 4 r e t r a u Q Transport Appeal Draft TAT Internal Stakeholder Final Draft Tribunal (TAT) Regulations for Amendment consultations on inputs considered Regulations for Amendment Bill the TAT Act Draft the Draft TAT and the Draft TAT the TAT approved by Amendment Regulations Amendment Act Amendment Act Amendment Act Parliament Act developed developed Regulations Regulations developed Number of Annual Status Annual - - Preliminary conducted updated Appeal cases Report on (2022/23) processed in terms Appeal Cases Status Report of the Transport processed in on Appeal Appeal Act terms of the Cases TAT Act processed in terms of the TAT Act Annual (2023/24) Status Report on Appeal Cases processed in terms of the TAT Act Standard Operating Standard Stakeholder Stakeholder Monitoring Monitoring Operating consultations inputs considered Report on the Report on the Procedures for Procedures for conducted on and incorporated implementation of implementation of National Public NPTR and the draft into the Standard the Standard the Standard Transport PREs Standard Operating Operating Operating Regulator (NPTR) implemented Operating Procedures Procedures for Procedures for and Provincial Procedures for NPTR and PREs NPTR and PREs NPTR and PREs Regulatory Entities (PREs) implemented NPTR and PREs 50 156 Operating Licence Operating Concept Draft Operating Stakeholder Final Operating Local Licence Local document on Licence Local consultations Licence Local Government Government the Operating Government conducted on the Government Assignment Assignment Licence Local Assignment Operating Licence Assignment Framework Framework Government Framework Local Framework developed developed Assignment developed Government developed Framework developed Assignment Framework (Source: Department of Transport (2023))
 Sub-Programme: Public Transport Industry Development Table 26: Sub-Programme: Public Transport Industry Development: Indicators, Annual and Quarterly Targets r o t a c i d n I t u p t u O l a u n n A t e g r a T Public Transport Public Public Transport Draft Public Draft Public - Draft Public Transport Subsidy Policy Transport Transport Subsidy Policy submitted to Subsidy Policy Subsidy Policy submitted to Cabinet submitted to submitted to Transport Subsidy Policy submitted to Cabinet ESIEID Cluster Social Protection, Cabinet Community and Human 51 157 Development (SPCHD) Cluster Public Public Transport Stakeholder Further Legal, Public Transport Funding Model inputs considered stakeholder constitutional Transport Funding Model approved and incorporated consultations on and financial Funding Model developed in the Public the updated implications of finalised Transport Public Transport the Public Funding Model Funding Model Transport • National Funding Model Treasury considered Framework for Allocation of - Bi-annual - the taxi 60% equity in industry Taxi Scrapping empowerment South Africa model issued to taxi implemented industry • (60% ownership of the Taxi Scrapping Entity) Monitoring Report on the implementation of the taxi industry 60% ownership of the Taxi Scrapping Entity Annual Monitoring Report on the implementation of the taxi industry 60% ownership of the Taxi Scrapping Entity Taxi Industry Taxi Industry Concept Draft Taxi Stakeholder Final Taxi Formalisation Formalisation document on the Industry consultations Industry Framework Framework Taxi Industry Formalisation conducted on Formalisation developed developed Formalisation Framework the Taxi Framework Framework developed Industry developed developed 52 158 r
Formalisation Framework Safer Transport Systems Number of old Annual Quarterly Quarterly Quarterly Quarterly taxi vehicles Monitoring Monitoring Monitoring Monitoring Monitoring scrapped Report on Progress Report Report on old Progress Report on old projected taxis on old taxis taxis scrapped Report on old taxis scrapped scrapped scrapped taxis scrapped Annual (2023/24) Monitoring Progress Report on projected taxis scrapped (Projected (Projected (Projected (Projected (Projected scrapping of 3 scrapping of 750 scrapping of 750 scrapping of scrapping of 750 000 old taxis old taxi vehicles) old taxi vehicles) 750 old taxi old taxi vehicles)16 vehicles) vehicles) Implementation Annual Monitoring Monitoring Monitoring Annual of identified Monitoring Report on the Report on the Report on the Monitoring Taxi Industry Report on the implementation implementation implementation Report on the Commercial implementation of identified Taxi of identified Taxi of identified implementation Projects of identified Taxi Industry Industry Taxi Industry of identified monitored Industry Commercial Commercial Commercial Taxi Industry Projects Projects Projects 16 The number of old taxi vehicles projected for scrapping is dependent on the uptake by the industry.
Projected targets are based on the analysis of past performance.
53 159 r o t a c i d n I t u p t u O l a u n n A t e g r a T Commercial Projects 1 r e t r a u Q 2 r e t r a u Q 3 r e t r a u Q • Taxi Broad- • Funding 4 r e t r a u Q Commercial Projects mobilised for identified Taxi Industry Commercial Projects Based Ownership Structures • 24-Hour Service Centres • Container Retail Solutions • Alternative Fuels (LPG) • Virtual Association Mobile Application Number of Dedicated Public Stakeholder Bi-Annual Status - Annual Provinces with Transport Law consultations (2023/24) Report dedicated Enforcement conducted with on the public transport Model approved three (3) establishment of law • Dedicated provinces that do dedicated public enforcement public not have transport law capacity transport dedicated public enforcement law transport law capacity in enforcement provinces 54 (2023/24) Status Report on the establishment of dedicated public transport law enforcement capacity in provinces 160 capacity enforcement established capacity in nine (9) • Western province Cape • North West • Northern Cape % Annual - Bi-Annual - Implementation Monitoring of the national Report on the strategic plan to implementation end gender- of programmes based violence addressing and femicide violence against (GBVF) in the women, youth taxi industry and persons with disabilities in the taxi industry Monitoring Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the taxi industry (Source: Department of Transport (2023)) Sub-Programme: Rural and Scholar Transport Implementation Annual Monitoring Report on the implementation of programmes addressing violence against women, youth and persons with disabilities in the taxi industry Table 27: Sub-Programme: Rural and Scholar Transport Implementation: Indicators, Annual and Quarterly Targets 55 161 r o t a c i d n I t u p t u O Public Transport Number of bicycles 8 000 bicycles 1 500 bicycles 1 500 bicycles 2 000 bicycles 3 000 bicycles distributed in rural distributed distributed distributed distributed distributed municipalities (Source: Department of Transport (2023)) 3.
BUDGET ANALYSIS: VOTE 40: DEPARTMENT OF TRANSPORT 3.1 OVERVIEW OF THE 2022/23 FINANCIAL YEAR17 3.1.1 First Quarter Expenditure of 2022/23 Table 28: 2022/23 First Quarter Expenditure % % e r u t i d n e p x E g n i d n e p S 9 1 - D I V O C Administration 507.8 507.8 Integrated Transport 93 93 83.6 14.2 16.5% 111 15.3% 15.5 27.4 1.3 24.7% 8.2% 0.0 0.0 Planning Rail Transport 19 991.8 19 991.8 5 046.2 25.2% 5 047.4 1.2 0% 0.0 17 It should be underscored that this section only covers the first Three Quarters of 2022/23, as the Fourth Quarter was not yet available at the time of the analysis.. 56 162 % Road Transport 33 983.4 33 983.4 8 963.6 26.4% 8 927.7 -35.9 Civil Aviation 424.8 424.8 89.5 21.1% 93.7 4.3 Transport Maritime Transport 155.4 155.4 29.1 18.7% 33.1 4 Public Transport 13 969.9 13 969.9 1 357.4 9.7% 1 479.5 122.1 d e t c e j o r P m o r f e c n a i r a V % e r u t i d n e p x E -0.4% 4.5% 12% 8.3% Total 69 125.9 69 125.9 15 583.6 22.5% 15 707.9 124.3 0.8% (Source: National Treasury (2022a)) g n i d n e p S 9 1 - D I V O C 0.0 0.0 0.0 0.0 0.0 In 2022/23, the budget allocation of the Department prior to adjustment stood at R69.1 billion.
By the end of the First Quarter of the financial year under review, the Department had spent R15.6 billion (or 22.5%) of the total available budget.18 The Department had projected that it would have spent R15.7 billion by this time, and this translated into the delay in spending of R124.3 million (or 0.8%).
The slower than projected spending was largely due to expenditure delays under the Taxi Recapitalisation Programme (TRP) and various Goods and Services across programmes.19 As at the end of the First Quarter of 2022/23, the Department had spent R118.6 million against the Quarter’s projection of R126.6 million on the Compensation of Employees (CoE).
The Department spent R8 million (or 6.3%) slower than projected mainly owing to the slow filling of vacant posts.20 The Department had 732 filled posts against a funded establishment of 813 posts.

This represented a vacancy rate of 10% (or 81 vacant posts).21 18 National Treasury (2022a), p. 143.

19 National Treasury (2022a), p. 144.

20 National Treasury (2022a), p. 145.

21 Ibid.
57 163 3.1.2 Second Quarter Expenditure of 2022/23 Table 29: 2022/23 Second Quarter Expenditure % Administration 507.8 514.9 209.5 40.7% 238.3 93 93 34 36.5% 36.8 Integrated Transport Planning % g n i d n e p S 9 1 - 28.7 2.8 12.1% 7.7% 0.1 0.0 0.0 0.0 Rail Transport 19 991.8 20 012.4 10 019.8 50.1% 10 035.9 Road Transport 33 983.4 35 822.8 18 400.8 51.4% 18 433.1 Civil Aviation 428.4 424.8 198.3 46.7% 209.3 16.1 32.2 11 0.2% 0.2% 5.2% 0.0 0.0 0.0 0.0 294 0.0 Transport Maritime Transport 155.4 155.4 71.7 46.2% 77.6 5.9 7.6% 0.0 0.0 Public Transport 13 969.9 13 969.9 5 319.9 38.1% 5 646 326.2 5.8% 0.0 0.0 Total 69 125.9 70 993.1 34 254.1 48.2% 34 677 422.9 1.2% 0.1 294 (Source: National Treasury (2022b)) By the end of the Second Quarter of 2022/23, the Department had spent R34.3 billion (or 48.2%) of the total available budget of approximately R71 billion after adjustment.22 The delay in the spending of R422.9 million (or 1.2%) was largely due to the expenditure delays under the Public 22 National Treasury (2022b), p. 145.
58 164 Transport Network Grant (PTNG), as transfers to eThekwini had been withheld for non- compliance.23 Slowing spending under the CoE also contributed to lower than planned expenditure.

As at the end of the Second Quarter of 2022/23, the Department had spent R240.1 million against the Quarter’s projection of R264.9 million on the CoE.
The Department spent R24.9 million lower than projected owing to the slow filling of vacant posts.24 The Department had 739 filled posts against a funded establishment of 813 posts.
This represented a vacancy rate of 9.1% (or 74 vacant posts).25 3.1.3 Third Quarter Expenditure of 2022/23 Table 30: 2022/23 Third Quarter Expenditure % % - D I V O C g n i d n e p S r e t s a s i D Administration 507.8 517.8 517.8 332.5 64.2% 372.3 39.8 10.7% 0.1 0.0 Integrated 93 93 93 54.9 59.1% 66.1 11.2 16.9% 0.0 0.0 Transport Planning Rail Transport 19 991.8 20 012.4 20 012.4 14 992.4 74.9% 15 031.9 39.5 0.3% 0.0 0.0 23 Ibid.
24 National Treasury (2022b), p. 147.

25 National Treasury (2022b), Ibid, p. 147.
59 165 % % - D I V O C g n i d n e p S r e t s a s i D Road Transport 33 983.4 59 954.5 59 954.5 26 651.5 44.5% 26 832.8 181.3 0.7% 0.0 416.5 Civil Aviation 424.8 424.8 424.8 279.5 65.8% 312.1 32.6 10.4% 0.0 0.0 Transport Maritime 155.4 158.2 158.2 110.9 70.1% 113.7 2.9 2.5% 0.0 0.0 Transport Public 13 969.9 13 973.6 13 973.6 7 848.2 56.2% 9 027 1 178.8 13.1% 0.0 0.0 Transport Total 69 125.9 95 134.2 95 134.2 50 269.9 52.8% 51 755.9 1 486 2.9% 0.1 416.5 (Source: National Treasury (2022c)) By the end of the Third Quarter of 2022/23, the Department had spent R50.3 billion (or 52.8%) of the adjusted budget of R95.1 billion, against a projection of 51.8 billion.26 The slower than planned spending was R1.5 billion (or 2.9%).
As at the end of the Third Quarter of 2022/23, the Department had spent R376.1 million against the Third Quarter projection of R395.5 million for the CoE.

The Department spent R18.4 million lower than projected mainly owing to the slow filling of vacant posts.27 The Department had 733 filled posts against a funded establishment of 813 posts.
This translated into a vacancy rate of 9.8% (or 80 vacant posts).28 The vacancy rate of the Department increased by 0.7%, from 9.1% (or 74 26 National Treasury (2022c), p. 153.

27 National Treasury (2022c), p. 155.

28 Ibid.
60 166 vacant posts) in the Second Quarter of 2022/23.29 During that period, the Department had 739 filled posts against a funded establishment of 813 posts.30 3.2 POLICY PRIORITIES FOR 2023/24 AND ALIGNMENT WITH NATIONAL, REGIONAL, CONTINENTAL AND GLOBAL AGENDAS 3.2.1 National Development Plan (NDP) and the Medium Term Strategic Framework (MTSF) The Department has identified the following eight areas that it will continue to prioritise over the remainder of the five year MTSF period, in response to the MTSF (2019 – 2024):31 1) Safety as an enabler of service delivery; 2) Public transport that enables social emancipation and an economy that works; 3) Infrastructure build that stimulates economic growth and job creation; 4) Building a maritime nation, elevating the oceans economy; 5) Accelerating transformation towards greater economic participation; 6) Innovation that advances efficiencies and supports a continuous improvement model; 7) Environmental protection – Recovering and maintaining a healthy natural environment; and 8) Governance – Greater efficiency, effectiveness and accountability.
The policy priorities of the Department are aligned with the MTSF, and also articulate the long- term vision of the NDP 2030.

To that effect, Table 1 above shows a schematic illustration of the alignment between the MTSF pillars, apex priorities of the 6th Administration and the strategic focus areas of the Department.32 29 National Treasury (2022b), p. 147.

30 Ibid.

31 Department of Transport (2023), pp.

33-86.

32 Department of Transport (2023), pp.

28-29.
28-29.

61 167 A key proposal in the NDP is to improve the country’s economic infrastructure such as roads and rail transport to boost growth and create employment.33 Over the medium-term, the Department plans to give effect to these policy priorities by focusing on:34 • Cultivating an enabling environment for the maintenance of national and provincial road networks; • Facilitating integrated road-based public transport services; and • Revitalising passenger rail services.
Delivering his 2023 SONA, President Ramaphosa accentuated three areas that the Department will be zeroing in on in 2023/24 as he committed Government to:35 • Restructuring that is underway at the Passenger Rail Agency of South Africa (PRASA), with 13 railway lines that have been reopened, significantly reducing the cost of travel for many workers; • Constructing the Msikaba Bridge and Mtentu Bridge and making travelling in the Eastern Cape much better; and • Constructing rural bridges as part of the Welisizwe programme to enable residents to easily and safely reach schools, workplaces and amenities.
Since appointing a new Board of Control (BOC) on 27 October 2020, PRASA contended that a wide-scale audit of the company’s employees had revealed 3 000 “ghost employees” drawing pay cheques, but whose existence could not be verified.36 The payments to these mystery employees is part of R28 billion in irregular expenditure reported to the National Treasury.

The BOC is embarking on a complete restructuring of PRASA’s structure, starting with the appointment of a permanent Chief Executive Officer (CEO).
According to the Chairperson of the PRASA Board, “the structure of the organisation is top heavy and unwieldy.

It is therefore unable 33 National Planning Commission (2012).

34 Department of Transport (2023), pp.

101-103.

35 Ramaphosa (2023).

36 Parker (2022).

62 168 to move quickly.

This has required a complete reassessment of the PRASA business model to improve agility”.37 The construction on the Msikaba Bridge deck, located near Lusikisiki in the Eastern Cape, was started in December 2022.
This 580m bridge will, when completed, cross the 195m deep Msikaba River gorge making it the longest span cable-stayed suspension bridge in South Africa.38 According to SANRAL, the anticipated completion date of the project is the end of 2024.

On completion the Msikaba Bridge will play a crucial role in improving travel time, connecting previously divided communities in the region, and opening opportunities in business and community-based tourism for the Wild Coast.
The completed bridge will improve the travel time between Durban and East London by up to three hours for heavy freight and, by providing a high mobility route through an area that is extremely isolated and under-served by road infrastructure.

The route will have significant social and economic benefits and will act as a catalyst for local and regional development.
The Mtentu Bridge is which expected to be Africa’s tallest bridge, will run across the Mtentu River in Mbizana in the Winnie Madikizela-Mandela Municipality, rising 223m into the Eastern Cape sky.

SANRAL awarded the tender to the Chinese Communications Construction Company (CCCC)-MECSA joint venture, after it was cancelled in May 2022 and re-advertised for fresh bidding.39 Construction is expected to start in March 2023, creating 2 500 full time equivalent jobs.
Over R1.8-billion will be expended on targeted local enterprises.

This will be derived from the sub-contracting to be undertaken by the main contractor on the bridge structure, as well as the construction of associated roads.

The Mtentu Bridge forms part of the N2 Wild Coast Road (N2WCR) project, which is the SANRAL’s flagship project in the Eastern Cape.

37 Parker (2022).

38 Engineering News (2022).

39 Engineering News (2022).


63 169 The Welisizwe programme is part of Government’s response to address mobility challenges in the rural areas.
Starting in 2020/21, fourteen (14) bridges were erected in various communities in KwaZulu-Natal, providing access to schools, work and clinics.40 The programme has contributed to skills development, with graduates appointed as bridge assessment, project management and maintenance teams.41 It also provides Expanded Public Works Programme (EPWP) job opportunities in the surrounding areas where bridges are erected.42 3.2.2 United Nations Decade of Action for Road Safety 2020-2030 (UNDA) South Africa is a participant to the second United Nations Decade of Action for Road Safety 2020- 2030 (UNDA).
Consequently, it has endorsed the global undertaking seeking to build on the gains of the first Decade of Action for Road Safety 2011-2020.
The objective is to promote a coordinated effort towards sustaining the attainment of the road safety goals to save up to 5 million lives, and to contribute to the prevention of up to 50 million serious injuries by 2030 using 2020 as a baseline.43 In accordance with this commitment, the National Road Safety Strategy (NRSS), which was approved by Cabinet in 2017, sets a new path for creating a “safe and secure road environment in South Africa”.44 The primary strategic target of the NRSS is to ultimately reduce fatal crashes by 50% by the year 2030.
The NRSS is based on a safe system approach that looks at a holistic view of the road transport system and interactions among roads, and roadsides, travel speed, vehicles and the road user.

A perusal of the Department’s budget allocation for 2023/24 lends credence to its continued commitment to national, regional, continental and global imperatives.

This is evidenced by strong investments in Road, Rail and Public Transport programmes respectively.
It is a truism that an efficient transport infrastructure provides social and economic benefits to both advanced and emerging economies by improving market accessibility.

In addition, it ensures 40 Defence Web (2022).

41 Ibid.

42 Ibid.

43 Department of Transport (2022), p. 38.

44 Ibid.

64 170 balanced regional, continental and global economic development.

Finally, an efficient transport infrastructure creates employment, promotes labour mobility, and connects communities.
3.3 2023/24 BUDGET ANALYSIS The section below analyses the budget allocation for the Department for the 2023/24 financial year.
Table 31: Overall Budget – Transport Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Administration 517.8 516.4 Integrated Transport 93.0 89.4 - 1.4 - 3.6 - 25.5 - 7.8 -0.3% -3.9% Planning Rail Transport 20 012.4 20 592.9 580.5 - 381.4 2.9% Road Transport 59 954.5 42 611.1 - 17 343.4 - 19 333.8 -28.9% Civil Aviation Transport 424.8 314.5 - 110.3 - 125.0 -26% -4.9% -8.4% -1.9% -32.3% -29.4% Maritime Transport 158.2 379.2 221.0 Public Transport 13 973.6 15 048.9 1 075.3 203.3 372.3 139.7% 128.5% 7.7% 2.7% TOTAL 95 134.2 79 552.4 - 15 581.8 - 19 297.8 -16.4% -20.3% (Source: National Treasury (2023)) For 2023/24, the Department receives R79.6 billion (excluding direct charges) – constituting 7.4% of the R1.1 trillion national budget vote.45 Nominally (without inflation), the Department’s budget decreases by 16.4% from the previous financial year, and it decreases by 20.3% when one takes cognisance of inflation (real terms).
The significant decrease is in the Road Transport programme, 45 National Treasury (2023), p. xvii.

65 171 which declines by 32.3% (above inflation), and decreases nominally by 28.9% (without inflation).
The reduction in the budget allocation for the Road Transport programme begs the question as to whether this will have no bearing on the attainment of one of the Department’s policy priorities for 2023/24, namely, “cultivating an enabling environment for maintaining road networks”.46 In terms of economic classification, transfers and subsidies comprise R77.9 billion (or 97.9%) of the departmental budget, and the bulk is allocated to the following bodies:47 • Provinces and municipalities (R30.2 billion); • Departmental agencies and accounts (R26.7 billion); and • Public corporations and private enterprises (R20.5 billion).
The overall allocation to the CoE stands at R547.5 million, down from R558.4 million in the previous financial year (2022/23).

This financial year, expenditure on consultants (business and advisory services) is set to increase from R473.9 million in 2022/23 to R645.4 million in 2023/24.
The exponential increase in the use of consultants (business and advisory services) is in the Maritime Transport programme that increases from R13.3 million in 2022/23 to R210.1 million in 2023/24, translating into an increase of 93.7%.

The Public Transport programme continues to have the biggest funding for the use of consultants, that is sitting at R250 million in the current financial year.
The use of consultants in the programme resonates with the Department’s plan to operationalise “the business case for the national public transport regulator, pilot and monitor the single ticketing system for all government-subsidised public transport operators”.48 In addition, the consultants in the Public Transport programme will assist the Department in “monitoring the implementation of an integrated public transport network in 10 municipalities on an ongoing basis”.49 46 National Treasury (2023), p. xvii.
47 Ibid.

48 Department of Transport (2023), p. 232.

49 Ibid.

66 172 However, it is worth noting that the allocation to the use of consultants in the Public Transport programme decreases from R263.9 million previously, indicating a reduction of 5.3% in real terms.

3.4 Programme Analysis As stated in the introduction, the Department has seven programmes.
What follows below is an analysis of the budget allocation for each programme, and where relevant or necessary, it refers to the programmes’ sub-programmes.

3.4.1 Programme 1: Administration The Administration programme is entrusted with providing strategic leadership, management and support services to the Department.
The programme comprises five sub-programmes, as illustrated in the table below: Table 32: Programme 1: Administration Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Ministry 43.6 40.4 - 3.2 Management 94.7 96.1 1.4 Corporate Services 261.4 258.1 - 3.3 Communications 41 Office Accommodation 77 42.4 79.5 1.4 2.5 - 5.1 - 3.1 - 15.4 - 0.6 - 1.2 -7.3% 1.5% -1.3% 3.4% 3.3% -11.7% -3.3% -5.9% -1.4% -1.6% TOTAL 517.8 516.4 - 1.4 - 25.5 -0.3% -4.9% (Source: National Treasury (2023)) The Administration programme receives R516.4 million in 2023/24, translating into a -4.9% below inflation decrease from the previous financial year.
The noticeable decrease is in the Ministry sub- 67 173 programme that records the -11.7% below inflation in 2023/24, down from 43.6 million in the previous financial year to R40.4 million currently.

Though the budget allocations for the Communications sub-programme and Office Accommodation sub-programme increase nominally by 3.4% and 3.3% respectively, their increases are in, effect, below inflation at -4% and -1.6% respectively.
3.4.2 Programme 2: Integrated Transport Planning The Integrated Transport planning programme integrates and harmonises macro-transport sector policies, strategies and legislation.

In addition, it coordinates and develops sector-related policies, research activities, as well as regional and inter-sphere relations.

The programme also facilitates sector information and provides sector economic modelling and analysis.
Table 33: Programme 2: Integrated Transport Planning Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Macro Sector Planning 17.6 17.7 Freight Logistics 18.4 18.3 Modelling and Economic 21.4 21 0.1 - 0.1 - 0.4 Analysis Regional Integration 8.8 9.1 0.3 Research and Innovation 17.9 14.4 - 3.5 Integrated Transport Planning 8.9 8.9 0 Administration Support - 0.7 - 1 - 1.4 - 0.1 - 4.2 - 0.4 0.6% -0.5% -1.9% -4.1% -5.2% -6.5% 3.4% -1.4% -19.6% -23.3% 0% -4.7% TOTAL 93 89.4 - 3.6 - 7.8 -3.9% -8.4% (Source: National Treasury (2023)) The budget for the Integrated Transport Planning programme decreases nominally by -3.9%, and by -8.4% below inflation.
The allocation totals R89.4 million in 2023/24, down from R93 million 68 174 in the previous financial year.

The reduction in the allocation to the programme begs the question as to how the Department will achieve the twin objectives that it has set itself to achieve over the Medium Term Expenditure Framework (MTEF) period.
These include, the facilitation of “the reduction of greenhouse gas emissions by implementing the green procurement guidelines for land transport, establishing an autonomous vehicle technology infrastructure readiness country-wide for electric vehicle regulation”.50 Secondly, the Department has undertaken to improve the “competition and access in the transport sector by establishing an economic regulator for the transport sector as well as finalising the regional integration strategy and implementation of the freight migration plan (Road to Rail)”.51 The highest decrease is in the Research and Innovation sub-programme whose allocation goes down from R17.9 million in 2022/23 to R14.4 million in the current financial year.
The sub- programme’s allocation decreases nominally by -19.6% and by -23.3% below inflation (real terms).

Conversely, the allocation to the Regional Integration sub-programme increases by 3.4% in nominal terms, but decreases by -1.4% below inflation.
This sub-programme is entrusted with managing, coordinating and facilitating “the development of strategies for engagements in the Southern African Development Community and the rest of Africa”.52 3.4.3 Programme 3: Rail Transport The Rail Transport programme facilitates and coordinates the development of sustainable rail transport policies, rail economic and safety regulation, and infrastructure development strategies that reduce system costs and improve customer service.
In addition, it oversees rail public entities and the implementation of integrated rail services.

Five sub-programmes fall under this programme.

50 Department of Transport (2023), p. 131.

51 Department of Transport (2023), p. 131.

52 National Treasury (2023).
69 175 Table 34: Programme 3: Rail Transport Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Rail Regulation 21.8 Rail Infrastructure and 42 20.4 19.7 - 1.4 - 22.3 - 2.4 - 23.2 -6.4% -53.1% -10.8% -55.3% Industry Development Rail Operations 11.3 18.9 7.6 6.7 67.3% Rail Oversight 19 931.4 20 527.9 596.5 - 362.4 3% Rail Administration 6.1 6.0 - 0.1 - 0.4 -1.6% 59.4% -1.8% -6.2% Support TOTAL 20 012.4 20 592.9 580.5 - 381.4 2.9% -1.9% (Source: National Treasury (2023)) Constituting 25.9% of the Department’s budget, the Rail Transport programme is the second largest departmental spending area, after the Road Transport programme.
The programme’s budget goes up from R20 billion previously, to R20.6 billion in 2023/24.

This translates into a below inflation increase of -1.9% and an increase of 2.9%, nominally.

The Rail Oversight sub-programme receives the biggest allocation of the programme’s budget, i.e.

99.7%.

Moreover, this sub-programme’s budget increases from R19.9 billion in the previous financial year to R20.5 billion in 2023/24.

This indicates a below inflation increase of -1.8%.
The allocation augurs well for PRASA’s “shift in focus towards implementing its strategic corridor recovery programme and continuing with its rolling stock renewal drive”.53 Transfers to PRASA to the value of R20.5 billion, and R76.1 million to the RSR are funded from this sub-programme.54 53 Department of Transport (2023), p. 148.

54 Ibid.

70 176 The Rail Operations sub-programme records an above inflation increase of 59.4%, up from R11.3 million in 2022/23 to R18.9 million in the current financial year.
This sub-programme “coordinates the implementation of integrated rail services, and monitors and analyses service delivery challenges facing the rail industry”.55 Its budget increase resonates with the Department’s commitment to addressing “the deterioration of passenger rail services”.56 In addition, it is in line with PRASA’s “shift in focus towards implementing its strategic corridor recovery programme and continuing with its drive to renew rolling stock”.57 Conversely, the allocation to the Rail Infrastructure and Industry sub-programme decreases drastically from R42 million in 2022/23 to R19.7 million in the current financial year.
This translates into a below inflation decrease of -55.3%.
The Rail Infrastructure and Industry sub- programme “coordinates the development and maintenance of, and investment in, rail infrastructure”.58 Transfers to PRASA totalling R20.5 billion are divided up as per the tables below: Table 35: PRASA Transfers: Current Entity/Programme Budget R million Metrorail (Operations) 2022/23 R5 billion 2023/24 R5.3 billion Mainline passenger services (Operations) R1 257.6 billion R1 263.9 billion Rail maintenance operations and inventories R962.1 million R958.2 million TOTAL R7.2 billion R7.5 billion (Source: National Treasury 2023)) Table 36: PRASA Transfers: Capital 55 National Treasury (2023), p. 10.
56 National Treasury (2023), p. 3.

57 Ibid.

58 National Treasury (2023), p. 10.
71 177 Entity/Programme Budget R million Other capital programmes Rolling Stock Fleet Renewal Signalling 2022/23 2023/24 R3.4 billion R2.4 billion R6.8 billion R6.9 billion R935.8 million R1.8 billion Metrorail (Refurbishment of coaches) R1.4 billion R1.7 billion Mainline Passenger Service (Refurbishment of coaches) R79 million R190.6 million TOTAL R12.6 billion R12.9 billion (Source: National Treasury (2023)) 3.4.4 Programme 4: Road Transport The Road Transport programme is entrusted with developing and managing an integrated road infrastructure network, as well as regulating transport and ensuring safer roads.
Moreover, it oversees road transport public entities.

The programme is divided into five sub-programmes.
Table 37: Programme 4: Road Transport Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Road Regulation 56.3 Road Infrastructure and 37.3 47.6 36.7 - 8.7 - 0.6 - 10.9 - 2.3 -15.5% -19.4% -1.6% -6.2% Industry Development Road Oversight 59 811.0 42 479.3 - 17 331.7 - 19 316.0 -29% -32.3% Road Administration 10.7 10.3 - 0.4 - 0.9 -3.7% -8.2% Engineering 39.2 37.2 - 2 - 3.7 -5.1% -9.5% Support Road Standards 72 178 TOTAL 59 954.5 42 611.1 - 17 343.4 - 19 333.8 -28.9% -32.3% (Source: National Treasury (2023)) The total expenditure for the Road Transport programme declines from approximately R60 billion in 2022/23 to R42.6 billion in 2023/24.
This constitutes a below inflation decrease of -32.3%.

The highest decrease is for the Road Oversight sub-programme whose allocation goes down from R59.8 billion in 2022/23 to R42.5 billion in 2023/24, resulting in a -32.3% below inflation.

It remains to be seen whether the decline in the sub-programme’s allocation will not have a negative effect on the maintenance of the country’s national and provincial networks.
However, notwithstanding the decrease, the Road Oversight sub-programme dominates the programme’s overall budget, comprising 99.7%.

The Road Oversight sub-programme reviews and analyses the performance of road transport public entities and monitors their compliance with regulations and legislation.

It also transfers funds to SANRAL, the Road Traffic Management Corporation (RTMC), and RTIA.

Moreover, the sub-programme makes provision for the Provincial Roads Maintenance Grant (PRMG).
The Road Regulation sub-programme is the second sub-programme that records a marked decrease of -19.4% below inflation, down from R56.3 million in the previous financial year to R47.6 million in 2023/24.
This sub-programme “synchronises road safety and traffic management legislation, and oversees the inspectorate for driving licences and vehicle testing stations”.59 Major transfers from the Road Transport programme are as follows:60 Table 38: Major Transfers from the Road Transport Programme 59 National Treasury (2023).

p. 12.

60 Ibid.
73 179 Entity/ Programme Budget R million RTMC 2022/23 2023/24 R224.2 million R220.1 million SANRAL: Gauteng Freeway Improvement Project (GFIP) R4.4 billion R692.9 million RTIA SANRAL SANRAL: Non-toll network R175 million R153 million R7.2 billion R7.5 billion R8.9 billion R15.8 billion SANRAL: Moloto Road upgrade R885.8 million R923.8 million SANRAL: N2 Wild Coast R1 190.4 million R1 241.5 million Rural Roads Asset Management Systems (RRAMS) Grant R115 million R115.5 million PRMG: Roads maintenance component R10.8 billion R11.3 billion PRMG: Welisizwe Rural Bridges Programme R388.9 million R1 billion PRMG: Refurbishment component - R2.9 billion (Source: National Treasury (2023)) Expenditure under Programme 4 lends credence to policy priorities for 2023/24.
The Road Transport programme facilitates activities pertaining to the maintenance of the country’s national and provincial road network.

This is in keeping with Government’s urgent objective of igniting the economy, creating jobs, as well as improving the standard of living of many of the marginalised.
3.4.5 Programme 5: Civil Aviation Transport The Civil Aviation Transport programme facilitates the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards through regulations and investigations.

In addition, it oversees aviation transport public entities.
Table 39: Programme 5: Civil Aviation Transport 74 180 Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Aviation Policy and 39.8 35.5 - 4.3 - 6 -10.8% -15% Regulations Aviation Economic Analysis 18.7 16 - 2.7 - 3.4 -14.4% -18.4% and Industry Development Aviation Safety, Security, 91.6 87.5 - 4.1 - 8.2 -4.5% -8.9% Environment, and Search and Rescue Aviation Oversight 267.9 169 Aviation Administration 6.7 6.5 - 98.9 - 0.2 - 106.8 -36.9% -39.9% - 0.5 -3% -7.5% Support TOTAL 424.8 314.5 - 110.3 - 125.
-26% -29.4% (Source: National Treasury (2023)) For the 2023/24 financial year, the allocation to the Civil Aviation Transport programme equals R314.5 million, down from R424.8 million previously, translating into a decrease of -29.4% below inflation.

The major decrease is in the Aviation Oversight sub-programme that constitutes a -39.9% decrease below inflation.

The sub-programme’s allocation declines from R267.9 million in 2022/23 to R169 million in 2023/24.
The second decrease (-18.4% below inflation) is in the Aviation Economic Analysis and Industry Development sub-programme, going down from R18.7 million in 2022/23 to R16 million in 2023/24.

For its part, the Aviation Policy and Regulations sub-programme declines from R39.8 million previously to R35.5 million in 2023/24.

This indicates a below inflation decrease of -15%.


The sub-programme “develops and maintains the civil aviation regulatory regime to respond to the national imperatives and international norms, standards and protocols”.61 61 National Treasury (2023), p. 14.

75 181 3.4.6 Programme 6: Maritime Transport The Maritime Transport programme promotes a safe, reliable and economically maritime transport sector through the development and implementation of policies and strategies.
In addition, the programme oversees maritime public entities.

Five sub-programmes fall under the Maritime Transport programme.
Table 40: Programme 6: Maritime Transport Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Maritime Policy Development 12.6 12.5 Maritime Infrastructure and 19.5 15 - 0.1 - 4.5 - 0.7 - 5.2 -0.8% -5.4% -23.1% -26.7% Industry Development Implementation, Monitoring 75.1 300.6 225.5 211.5 300.3% 281.6% and Evaluation Maritime Oversight 45.4 45.1 Maritime Administration 5.6 5.9 - 0.3 0.3 - 2.4 0 -0.7% 5.4% -5.3% 0.4% Support TOTAL 158.2 379.2 221.0 203.3 139.7% 128.5% (Source: National Treasury (2023)) The budget allocation for the Maritime Transport programme increases exponentially by 139.7% nominally and by 128.5% above inflation, up from R158.2 million previously to R379.2 million in 2023/24.
The biggest budget increase is in the Implementation, Monitoring and Evaluation sub- programme that goes up from R75.1 million in 2022/23, to R300.6 million in the current financial year.

This translates into an above inflation increase of 281.6%.

This sub-programme ensures that 76 182 legislation, policies and strategies pertaining to maritime safety, security and environmental protection are implemented.
Conversely, the expenditure on the Maritime Infrastructure and Industry Development sub- programme declines from R19.5 million in 2022/23 to R15 million in 2023/24.

This indicates a below inflation decrease of -26.7%.

This sub-programme facilitates the development of integrated maritime infrastructure and a maritime industry.
3.4.7 Programme 7: Public Transport The Public Transport programme is tasked with providing and regulating safe, secure, reliable, cost-effective and sustainable public transport services in South Africa through legislation, policies and strategies.

The Public Transport programme comprises six sub-programmes.
Table 41: Programme 7: Public Transport Programme Budget Nominal Real Nominal Real R million 2022/23 2023/24 Decrease in Decrease in Change in Change in Increase / Increase / Percent Percent 2023/24 2023/24 2023/24 2023/24 Public Transport 58.4 51.2 - 7.2 - 9.6 -12.3% -16.4% Regulation Rural and Scholar 45.9 39.4 - 6.5 - 8.3 -14.2% -18.2% Transport Public Transport 207.5 199.4 - 8.1 - 17.4 -3.9% -8.4% Industry Development Public Transport 13 607.6 14 704.3 1 096.7 409.8 8.1% 3% Oversight Public Transport 13.1 14.3 1.2 0.5 9.2% 4.1% Administration Support 77 183 Public Transport 41.2 40.3 - 0.9 - 2.8 -2.2% -6.8% Network Development TOTAL 13 973.6 15 048.9 1 075.3 372.3 7.7% 2.7% (Source: National Treasury (2023)) In 2023/24, Programme 7 receives R15 billion, up from approximately R14 billion in 2022/23, indicating a 2.7% above inflation increase.
The increase in the budget for the Public Transport programme resonates with the Department’s strive “to achieve a seamless integration of all modes of public transport to deliver an efficient, safe and reliable public transport system”.62 The biggest increase in the allocation is in the Public Transport Administration Support sub- programme which receives R14.3 million in 2023/24, up from R13.1 million previously, indicating an increase of 4.1% above inflation.
This sub-programme provides strategic leadership and administrative support to the programme.

The Public Transport Oversight sub-programme comes second, as far as the increase in allocation is concerned, recording a 3% above inflation increase.

The expenditure on the sub-programme grows up from R13.6 billion in 2022/23 to R14.7 billion in the current financial year.
The Public Transport Oversight sub-programme “oversees the use of public transport subsidies and grants”.63 In addition, it “monitors compliance with the annual Division of Revenue Act in terms of the transferring of funds, reporting, allocations and adjustments”.64 On the contrary, there is a drastic decrease in the allocation to the Rural and Scholar Transport sub-programme that goes down from R45.9 million in the previous financial year to R39.4 million in the current financial year.
This indicates a decrease of -18.2% that does not keep track with the effects of inflation.

62 National Treasury (2023), p. 3.

63 National Treasury (2023), p. 18.

64 Ibid.

78 184 Similarly, the expenditure on the Public Transport Regulation sub-programme records a below inflation decrease of –16.4%, down from R58.4 million in 2022/23 to R51.2 million in 2023/24.

This sub-programme manages the development and maintenance of policy, legislation and regulation.
It also coordinates and facilitates implementation.
Moreover, the sub-programme is responsible for managing public transport information on public transport systems developed in terms of the National Land Transport Act (No.5 of 2009).65 Selected transfers in the Public Transport programme are as follows:66 Table 42: Selected Transfers in the Public Transport programme Entity/Programme Budget R million 2022/23 2023/24 Taxi Recapitalisation Programme (TRP) R476.8 million R478.7 million South African National Taxi Council (SANTACO) R27.5 million R28.7 million Public Transport Network Grant (PTNG) R6 billion R6.8 billion Public Transport Operations Grant (PTOG) R7.1 billion R7.4 billion TOTAL R13.6 billion R14.7 billion (Source: National Treasury (2023)) 4.
ESTIMATES OF NATIONAL EXPENDITURE PER ENTITY: VOTE 40 OF 2023/24 Table 43: Entity Budget as expressed in the Estimates of National Expenditure: Vote 40 of 2023/24 Entity Budget as expressed in the Estimates of National Current Annual Expenditure 65 National Treasury (2023), p. 18.

66 National Treasury (2023).


79 Budget (R thousand) per DoT Budget 185 Airports Company Airports Company South Africa was established in terms of the No transfer from the South Africa Airports Company Act (1993) and is listed as a schedule 2 public DoT.

entity in terms of the Public Finance Management Act (1999).
The company owns and operates 9 principal South African airports, including OR Tambo International Airport in Johannesburg, Cape Town International Airport, and King Shaka International Airport in Durban.

Over the medium term, the company will focus on building and replacing infrastructure, and plans to invest approximately R1 billion in each year over the medium term on capital expenditure projects.
This focus was deferred during the COVID‐19 pandemic, which saw a significant decrease in commercial air travel, resulting in financial instability.

Total expenditure is expected to increase at an average annual rate of 1.1 per cent, from R5.2 billion in 2022/23 to R5.4 billion in 2025/26, with goods and services accounting for 45.3 per cent (R7.2 billion) of this spending.
Revenue is expected to increase at an average annual rate of 8.5 per cent, from R5 billion in 2022/23 to R6.4 billion in 2025/26, driven by the expected increase in passenger numbers as the air travel industry continues its recovery from the pandemic.
Passenger Rail Agency The Passenger Rail Agency of South Africa was established in R20 451 827 of South Africa terms of the Legal Succession to the South African Transport Services Amendment Act (2008) with the primary mandate of providing rail commuter services within, to and from South Africa in the public interest.

The agency also provides long‐haul passenger rail and bus services within, to and from South Africa.
Over the medium term, the agency will focus on ensuring the recovery of commuter rail services by implementing it strategic corridor recovery programme and modernising its core infrastructure, which includes the replacement of old rolling 80 186 stock and investment in signalling infrastructure.

As part of its strategic corridor recovery programme, the agency aims to restore services on Cape Town’s central line and Tshwane’s Mabopane line.
To support this, capital expenditure is expected to increase at an average annual rate of 21.8 per cent, from R12.5 billion in 2022/23 to R22.6 billion in 2025/26.

The agency also expects to acquire 176 new train sets towards its rolling stock fleet renewal programme.
Total expenditure is expected to increase at an average annual rate of 5.1 per cent, from R14.6 billion in 2022/23 to R17 billion in 2025/26, with 66.8 per cent (R32.5 billion) of this spending earmarked in the Metrorail and mainline passenger service programmes.

Compensation of employees accounts for an estimated 38.8 per cent (R18.8 billion) of total spending over the period ahead.
Departmental transfers account for an estimated 89.2 per cent (R64.1 billion) of the agency’s revenue over the next 3 years.

Other sources of income include the sale of train and bus tickets, rental income from leasing properties, on‐board sales and interest.

Total revenue is expected to increase at an average annual rate of 4 per cent, from R22.2 billion in 2022/23 to R25 billion in 2025/26, driven mainly by a projected recovery in ticket sales as more commuter lines come back online.
The agency expects to run surpluses over the medium term.

However, trade and other payables is expected to increase from R8.9 billion in 2022/23 to R25.4 billion in 2025/26, which suggests that the agency could face challenges in paying service providers and meeting targets over the period ahead.

Road Accident Fund The Road Accident Fund Act (1996) provides for the No transfer from the establishment of the Road Accident Fund, which is mandated to DoT.
RAF funded compensate South African road users for losses or damages 81 187 caused by motor vehicle accidents within the borders of South through the fuel Africa.

levy.

Over the medium term, a change in the settlement policy of loss‐ of‐income claims from lump sum to annuity will see a moderation in the payment of claims to match the fund’s pay‐as‐ you‐go principle.
Accordingly, the total value of claims paid out over the MTEF period is expected to decrease from R43.3 billion in 2022/23 to R35.9 billion in 2025/26 at an average annual rate of 6.1 per cent.

The entity derives revenue from the road accident fund levy in terms of the Customs and Excise Act (1964).
Transfers received through the levy are expected to increase at an average annual rate of 0.5 per cent, from R48.1 billion in 2022/23 to R48.9 billion by 2025/26, in line with an expected increase in fuel sales.

South African National The South African National Roads Agency was established in R26 123 630 Roads Agency terms of the South African National Roads Agency Limited and National Roads Act (1998) and is listed as a schedule 3A public entity in terms of the Public Finance Management Act (1999).
The agency is responsible for the planning, design, construction, operation, management, control, maintenance and rehabilitation of the South African national road network, including the financing of these functions, for both toll and non‐toll roads.

Over the medium term, the agency’s focus remains on the construction, maintenance and preservation of the national road network.
It plans to increase the length of the network in active strengthening and resurfacing contracts from 1 500 kilometres in 2022/23 to 3 000 kilometres in 2025/26.

As a result, planned capital expenditure is expected to increase from R15.8 billion in 2022/23 to R38 billion in 2025/26 at an average annual rate of 34 per cent.
Although the agency’s number of personnel is expected to remain unchanged at 695 over the MTEF period, 82 188 spending on compensation of employees is expected to increase at an average annual rate of 5.5 per cent, from R748.4 million in 2022/23 to R878.9 million in 2025/26.
This is driven by an expected change in the composition of personnel, with more professionals and specialists, specifically project managers and procurement specialists, set to join the establishment to improve procurement processes and reduce the road maintenance backlog.

The special allocation of R23.7 billion in 2022/23 is expected to provide the agency with sufficient funds to service several large debt redemptions and related maintenance in 2023/24.
Expenditure is expected to decrease at an average annual rate of 2.2 per cent, from R27.5 billion in 2022/23 to R25.8 billion in 2025/26.

This is due to moderation in spending from R35.4 billion in 2024/25 as the agency accelerates road maintenance projects to deal with the backlog in the first 2 years of the MTEF period.
The agency is set to receive 72.3 per cent (R75.7 billion) of its revenue over the MTEF period through transfers from the department and 17.5 per cent (R17.6 billion) through toll fees, concession income and rental income from investment properties.

Revenue is expected to increase at an average annual rate of 9.6 per cent, from R29 billion in 2022/23 to R38.1 billion in 2025/26.
The Air Traffic and The Air Traffic and Navigation Services Company is a schedule No transfer from the Navigation Services 2 public entity in terms of the Public Finance Management Act DoT.

Company (1999) and was established in terms of the Air Traffic and Navigation Services Company Act (1993).
The company is mandated to provide safe, orderly and efficient air traffic navigational and associated services to the air traffic management community, and in accordance with the standards 83 189 set out by the International Civil Aviation Organisation and the civil aviation regulations issued in terms of the Civil Aviation Act (2009).
The Air Traffic and Navigation Services Company maintains its focus on providing safe, efficient and cost-effective air traffic management solutions and related services, with an estimated 78 per cent (R4.4 billion) of the entity’s budget over the MTEF period expected to be used on communication, surveillance and simulator systems.

Compensation of employees comprises 58.3 per cent (R3.3 billion) of total expenditure over the period ahead, while goods and services accounts for 26.6 per cent.
R823.9 million over the MTEF period is earmarked for capital expenditure.

Total expenditure is expected to increase at an average annual rate of 10.6 per cent, from R1.5 billion in 2022/23 to R2 billion in 2025/26.

The company generates its own revenue through the provision of aeronautical services to the aviation industry such as en‐route and approach fees, aerodrome and area fees, and terminal manoeuvring area fees.
Total revenue is expected to increase at an average annual rate of 18.2 per cent, from R1.3 billion in 2022/23 to R2.1 billion in 2025/26, as the company returns to normal operations after the lifting of COVID‐19 restrictions.

The Cross-Border Road The Cross‐Border Road Transport Agency was established in No transfer from the Transport Agency terms of the Cross‐Border Transport Agency Act (1998).

Over DoT.
Over DoT.

the next 3 years, the agency will continue to facilitate an unimpeded flow of freight and passenger road transport across the region.

To this end, the agency plans to conduct an average of 245 843 inspections to enforce cross‐border road traffic law over this period.
Expenditure is expected to increase at an average annual rate of 4.4 per cent, from R274.2 million in 2022/23 to R312.5 million 84 190 in 2025/26, mainly driven by spending on administration, law enforcement, and research and regulatory services.

The agency expects to derive 84.2 per cent (R757.4 million) of its revenue over the MTEF period from administrative fees.

Revenue is set to increase in line with spending.


The Driving Licence The driving licence card account was established in terms of the Budget Vote does Card Account Public Finance Management Act (1999) to manufacture driving not specify the licence cards based on orders received from driving licence current budget for testing centres across South Africa.

the DLCA.

Over the MTEF period, the entity will focus on improving data collection, and design and introduce a new format for driving licence cards.
It will also invest in new machinery to ensure optimal manufacturing productivity.

As a result, spending on production and infrastructure is expected to account for 63.2 per cent (R357.3 million) of the entity’s budget over the medium term.

Total expenditure is expected to decrease at an average annual rate of 2.4 per cent, from R208.7 million in 2022/23 to R194 million in 2025/26, due to the accelerated depreciation of the current card production machine, which is nearing the end of its usable lifespan.
The entity generates revenue through the sale of licence cards, increasing at an average annual rate of 3.2 per cent, from R225.7 million in 2022/23 to R248.1 million in 2025/26.

The Ports Regulator of The Ports Regulator was established in terms of section 29 of the R42 564 South Africa National Ports Act (2005) to regulate South Africa’s port infrastructure system.
The regulator sets tariffs for the National Ports Authority and oversees complaints and appeals to preserve fairness, transparency and competitive practices for ports infrastructure.

The regulator will continue to focus on strengthening the economic regulation of ports infrastructure and compliance with 85 191 the ports regulatory framework over the medium term.
In doing so, its expenditure is expected to increase at an average annual rate of 2.9 per cent, from R44.5 million in 2022/23 to R48.5 million in 2025/26.

The regulator derives its revenue from departmental transfers, which are set to increase at an average annual rate of 2.7 per cent, from R43 million in 2022/23 to R46.6 million in 2025/26.

Total revenue is set to increase in line with expenditure.
The Railway Safety The Railway Safety Regulator was established in terms of the R76 086 Regulator National Railway Safety Regulator Act (2002).

The regulator is mandated to oversee railway operations, monitor operators and enforce a safe operating environment.

This includes rail operators from neighbouring countries with operations that enter South Africa.

Over the medium term, the regulator will focus on its primary business of issuing safety permits to railway operators.
It also plans to conduct 48 safety initiatives in 2023/24.

These include education and awareness campaigns, community involvement programmes and training for safety ambassadors.

Expenditure is expected to increase at an average annual rate of 3.6 per cent, from R263.2 million in 2022/23 to R292.5 million in 2025/26.

This mainly covers operational expenses such as compensation of employees, office rental, professional fees and capital expenditure.
The regulator expects to generate 70 per cent (R591.1 million) of its revenue over the period ahead from administrative fees and the remainder through transfers from the department.

Revenue is expected to increase in line with spending.

The Road Traffic The Road Traffic Infringement Agency was established in terms R152 997 Infringement Agency of the Administrative Adjudication of Road Traffic Offences (AARTO) Act (1998).
The agency was established to administer 86 192 procedures to discourage the contravention of road traffic laws, R9 468 - Operations adjudicate infringements, enforce penalties for the contravention R143 529 – of road traffic laws, provide specialised prosecution support AARTO roll out services, and carry out community education and awareness programmes in road safety‐related matters.
The agency’s activities over the medium term are focused on administration, adjudication and support, and the rollout programme.

Expenditure is expected to increase at an average annual rate of 4.5 per cent, from R487 million in 2023/24 to R555.6 million in 2025/26, with goods and services accounting for an estimated 60.8 per cent (R969.8 million) of this spending.

The agency derives its revenue mainly through administrative fees and transfers from the department.
Revenue is set to increase in line with expenditure.

The Road Traffic The Road Traffic Management Corporation was established in R220 104 Management Corporation terms of the Road Traffic Management Corporation Act (1999).

Its mandate is to provide national road traffic strategic planning and law enforcement, and pool public sector resources for the provision of road traffic management.
Over the medium term, the corporation plans to promote road traffic safety through education and awareness campaigns, manage road traffic data and information through the automation of processes in driving licence testing centres, maintain the electronic national traffic information system, and improve the coordination of road traffic law enforcement.
Accordingly, spending on operations, the training of traffic personnel, strategic services and law enforcement is expected to account for 91.1 per cent (R5.4 billion) of the corporation’s total spending over the period ahead.

Expenditure is expected to increase at an average annual rate of 8.3 per cent, from R1.6 billion in 2022/23 to R2 billion in 87 193 2025/26, mainly driven by spending on compensation of employees.
The corporation derives revenue mainly through transaction fees, which account for 65.6 per cent (R3.7 billion) of total projected revenue over the period ahead.

Revenue is set to increase in line with spending.

The South African Civil The South African Civil Aviation Authority was established in R85 801 Aviation Authority terms of the South African Civil Aviation Authority Act (1998) and is governed by the Civil Aviation Act (2009).
The authority is mandated to oversee the safety and security of the civil aviation industry and ensure compliance with and adherence to the standards and recommended practices of the International Civil Aviation Organisation.

Over the medium term, the authority will focus on implementing safety and security programmes in line with the standards and recommended practices issued by the organisation and civil aviation regulations in South Africa.
Accordingly, it plans to conduct 229 air safety infrastructure investigations and 1 374 air safety operation inspections per year over the MTEF period.

The projected increase in capital expenditure from R10 million in 2022/23 to R225.6 million in 2025/26 is driven by the replacement of the inspection aircraft and calibration equipment.

Expenditure is expected to increase at an average annual rate of 6.9 per cent, from R862.3 million in 2022/23 to R1.1 billion in 2025/26.
Revenue, which is set to increase in line with spending, is mainly generated through passenger safety charges, user fees and the aviation fuel levy.

The South African The South African Maritime Safety Authority was established in No transfer from the Maritime Safety terms of the South African Maritime Safety Authority Act (1998) DoT.

Authority and is listed as a schedule 3A public entity in terms of the Public Finance Management Act (1999).
The authority is mandated to 88 194 ensure the safety of life and property at sea, and prevent and combat marine pollution.

Over the next 3 years, the authority will continue to focus on ensuring safety and preventing pollution at sea.

Spending on these activities accounts for an estimated 71.9 per cent (R1.1 billion) of expenditure over the period ahead.

Total expenditure is expected to increase at an average annual rate of 4 per cent, from R487.1 million in 2022/23 to R548.4 million in 2025/26.
The authority generates revenue through levies, fees and user charges.

Revenue is expected to increase at an average annual rate of 3.9 per cent, from R490.8 million in 2022/23 to R550.9 million in 2025/26, in line with inflationary adjustments to levies.

(Source: National Treasury Estimates of National Expenditure (2023)) 5.
COMMITTEE OBSERVATIONS Members made the following observations during the discussions: 5.1 The APP of the Department had a refreshed focus as it provided an assessment of what worked/did not work in terms of the priority areas and its alignment.

5.2 The Road Maintenance Funding strategy, Operation Vala Zonke and the programme for bridge repairs were welcomed.
5.3 The current backlog in issuing of driving licences remains a concern, the turnaround target period for issuing of driving licences was questioned, as well as progress regarding the plans by the Department to replace the current card printing machine; 5.4 Concerns were raised regarding the targets set for environmental protection programmes, with specific reference to the Road to Rail programme.

5.5 Having noted Public Protector Report No.
37 of 2018-29 on the illegal conversion of panel vans, the question was put to the Department whether it was content with the number of 89 195 illegally converted vehicles as mentioned in the Public Protector report given that there are allegations of many more such vehicles on the roads, and if not, what could be done about the estimated 4 000 other illegally converted vehicles and ambulances; why was the focus on taxis and not also the alleged illegally converted ambulances, tourism vehicles, labour and staff transport vehicles; and whether expanding the scope to determine these exact figures and remove these vehicles from the roads was a priority for the Department.
The Department was asked how certain it was that parts were not removed from Mini-bus Taxi vehicles earmarked for scrapping and brought back into the industry or recycled and back onto the roads.

5.6 Members expressed concern regarding the filling of DoT vacancies, entity management vacancies, as well as Board appointments.

This also had to coincide with an improvement in the monitoring of the functionality and performance by the various Boards.
5.7 Having noted the passenger trips targets for the IPTNs in the APP, it was noted that more information was needed on plans to increase revenue from the BRT systems.

5.8 It was noted that the move from road transportation of freight to rail would be challenging since the use of trucks to transport goods had increase by forty per cent from 2004 to 2021 and that there had been an increase in container growth, with Transnet Freight Rail (TFR) now having 17% of this market share.
5.9 Concern was expressed about the downgrade of the radio and air traffic and navigation services at airports following recent audits, as well as about the Department’s budget that did not include a budget allocation for replacing or repairing some of the aviation equipment.

5.10 Concerns still remains over the poor state of the provincial and municipal roads and apparent lack of routine maintenance of these roads to and from strategic economic nodes.
The view was again expressed that the responsible departments are not ensuring speedy repairs to potholes or regular maintenance of roads, leading to an increase in pothole numbers and size.

The proposed ring-fencing of provincial allocated funds to ensure these grants are only spent on the specified services per the grant conditions is welcomed.
The Committee remains of the view that there is a clear need to receive regular quarterly reports 90 196 on the implementation of the following grants: Provincial Roads Maintenance Grant (PRMG), Rural Road Asset Management Systems Grant (RRAMS), Municipal Infrastructure Grant (MIG), Expanded Public Works Programme Integrated Grant for Municipalities, and Public Transport Network Grant (PTNG).
5.11 Considering the challenges highlighted by the Department on the Welisizwe Rural Bridges Programme during its briefing to the Committee on the 2023/24 Budget, as well as the 3rd Quarter Expenditure, the Committee was of the view that there is an urgent need to clarify the reporting lines and functional relationship to ensure the project is successful.
For this reason, the Committee resolved that there was a need to schedule a joint meeting with its relevant counterpart Committees responsible for oversight over the Department of Defence, as well as the Department of Public Works and Infrastructure in order to consider how these challenges may be remedied and what recommendations could be made on the way forward.
5.12 The provision of scholar transport in a non-uniform manner throughout the country remains a concern and could be directly linked to the fact that there is still no explicit decision regarding the lead department for the provision of this service to scholars.

The Committee noted the explanation provided by the Department on why this programme falls under either the Department of Basic Education or the Transport Department of each provincial administration and the constitutional powers linked thereto.
However, the Committee remains of the view that greater co-ordination is possible if these matters can be addressed by the Presidency within the MINMEC structures and if there are national standards set for the provision of these services.

5.13 Due to the continued slow uptake of the Taxi Recapitalisation Programme, the Committee resolved to schedule a meeting with the various taxi industry associations (i.e.
SANTACO and the National Taxi Alliance (NTA) and the Department in order to find possible solutions to the bottlenecks causing the delays in vehicle scrapping.

5.14 Concerns remain that there is not enough done to ensure universal access to all modes of public transport to ensure the safe transportation of persons with disabilities, as well as youth, women and the elderly.
91 197 5.15 There remains a need to receive regular feedback from the Department on the work done to address the 2020 National Taxi Lekgotla Resolutions, especially work done towards the formalisation of the industry.

6.
6.

COMMITTEE RECOMMENDATIONS The Committee recommends that the Minister, through the Department, ensure the following: 6.1 The Department must provide the Committee with quarterly reports on the filling of Board vacancies so that Board memberships are filled well in time to have functioning Boards in order to prevent a recurrence of the Annual Report delays, as well as to ensure effective and efficient control over and fiduciary duty fulfilment in all entities of the Department.
6.2 The Department should give quarterly reports on the filling of vacancies in senior positions within the Department and its entities.

6.3 The Department should provide quarterly reports on the implementation of the following grants: PRMG, RRAMS, MIG, Expanded Public Works Programme Integrated Grant for Municipalities and PTNG.
These reports must indicate the past 5-year budget allocation for these grants to each province and municipality benefitting from these, what projects have benefitted from these grants in the past 5 years, what projects are projected to benefit from these grants in the next 5 years, status of projects (planning phase/in progress/completion dates), details for each project on ensuring universal access design, as well as functional universal access infrastructure, if grant allocations were suspended give reasons for the suspensions and possible grounds or conditions for re-admission, progress on ring-fencing of provincial allocations of provincial departments who are poor performers, if funds are ring-fenced or suspended there must be an indication of which projects would be affected by such and what these original budget allocations were.
6.4 The Department and the DLCA must provide quarterly reports on progress on narrowing the backlog of driving licence card production, as well as progress on the Cabinet process towards the new card format.

92 198 6.5 The Department and PRASA must provide quarterly reports on progress on bringing the full passenger rail service back online, as well as the progress on new train roll-out and depot finalisation to store these trains safely.
This report must also contain information on the appointment and roll-out of the security plans to prevent vandalism of, theft of and encroachment onto PRASA infrastructure and rail reserves.
6.6 The Department must provide a quarterly road maintenance report on the national, provincial and municipal road maintenance work and expenditure, this must also include: the road number and location, the responsible sphere, the assessed condition of the road (good/fair/poor), information on when the last maintenance was of the road and what work was done and the cost/expenditure on this work, future planned maintenance projects with budget allocations.
6.7 The Department must provide quarterly reports on the various municipal, provincial and national projects, with the specific focus on pothole repairs.
This report should also include the available platforms or methods for reporting potholes to the responsible sphere, the quarterly expenditure on pothole specific repairs, any public-private partnership (PPP) or community partnerships in place for ensuring pothole repairs, as well as the legal or departmental expenditure by each sphere on claims against the sphere for vehicle damage or personal injury claims due to potholes.
6.8 The Department and SANRAL must provide quarterly reports on the Moloto Road and other Moloto Corridor projects (if any) and progress on the road infrastructure projects, public transport provision along the corridor and expenditure on these for each quarter.

6.9 The Department should submit quarterly reports to the Committee on progress made on the Road Maintenance Funding strategy, Operation Vala Zonke and the Welisizwe Rural Bridges Programme.
6.10 The Department should submit quarterly reports to the Committee on progress made to remove all identified illegally converted panel vans identified per the Public Protector’s Report from the road network.

It should furthermore submit a report to the Committee, within a month of adoption of this report, on the number of other illegally converted vehicles identifiable on the eNaTIS system and indicate what strategy is in place to remove illegally converted vehicles off the national roads.
93 199 6.11 The Department should submit quarterly reports to the Committee on current figures for passenger trips on the various IPTNs identified in the APP, in order to indicate how close operators are coming to reaching the targets set in the APP.
6.12 The Department together with ACSA and ATNS must provide quarterly reports to the Committee on work done to improve radio and air traffic and navigation services at airports following recent audits, as well as indicate what budget allocations are made and spent for replacing or repairing some of the aviation equipment.
6.13 The Department, together with PRASA, must provide quarterly reports on rolling stock fleet renewal programme, the refurbishment of coaches, as well as the upgrading of signalling systems.

6.14 The Department must provide quarterly reports on the progress to address the 2020 National Taxi Lekgotla Resolutions.

7.
7.

SUMMARY OF REPORTING REQUESTS The Committee requested additional matters for the Department to report on: Table 44: Additional Reporting Requests Reporting matter Action Timeframe required The Department should submit the following reports: Written By the end of the - Annual Status Report on IPTN Programme reports from 2023/24 financial year compliance with universal access design norms the and standards; Department.
- Annual Status Report on operational hours of BRTs; and - Annual Monitoring Report on public transport.

The Department, together with the RAF, should submit Written By the end of the the following reports: reports from 2023/24 financial year 94 200 - Annual Report must be tabled for the 2021/22 the Financial Year, which is overdue; Department.
- Annual Report on steps taken to ensure resolution of reported incidents of fraud and corruption; - Annual Report on the implementation of action plan to address audit findings raised for the 2019/20 financial year and any findings raised in the 2020/21 and 2021/22 report once it is tabled; - Annual Report on efforts taken to achieve an unqualified audit report with no significant findings; - Annual Report on efforts taken to reduce wasteful and fruitless expenditure; and - Annual Report on steps taken to reduce irregular expenditure.
The Committee recommends that the National Assembly approve the budget of the Department.

Report to be considered.
95 201 ANNEXURE A: LIST OF ABBREVIATIONS/ACRONYMS Abbreviation/Acronym Meaning AARTO ACSA AFCAC AGM AGSA AI AIC AIMO ANSP APP ARDP ASO ATM ATNS ATS ATSO AU AvSec BAC BARSA B-BBEE BRICS BRRR BRT CANSO CAPEX Cat C-BRTA 96 Administrative Adjudication of Road Traffic Offences Airports Company South Africa African Civil Aviation Commission Annual General Meeting Auditor-General of South Africa Aviation Infrastructure Aeronautical Information Circular Aeronautical Information Management Officer Air Navigation Service Provider Annual Performance Plan (Draft) Access Road Development Plan Aviation Security Operations Air Traffic Management Air Traffic Navigation Services Air Traffic Services/ Aircraft Tracking Systems Air Traffic Service Officer African Union Aviation Security Bid Adjudication Committee Board of Airlines Representatives of South Africa Broad-Based Black Economic Empowerment Brazil, Russia, India, China and South Africa Budget Review and Recommendations Report Bus Rapid Transport Civil Air Navigation Organisation Capital Expenditure Civil Aviation Technical Cross-Border Road Transport Agency 202 C-BRTRF Cross-Border Road Transport Regulators Forum CEO CFO CNG CNS CoE COTO CPO DCA DG DGEC DDG DGOs DLCA DLTC DPE DPME DPSA EDL EE EI eNaTIS EoV ESEID EXCO FIU FMPPI FOSAD 97 Chief Executive Officer Chief Financial Officer Compressed Natural Gas Communications, Navigation and Surveillance Compensation of Employees Committee of Transport Officials Chief Procurement Office Director of Civil Aviation Director-General Directors-General of the Economic Cluster Deputy-Director General Dangerous Goods Operators Driving Licence Card Account Driving Licence Testing Centres Department of Public Enterprises Department of Planning, Monitoring and Evaluation Department of Public Service and Administration Examiner of Driving Licences Employment Equity Effective Implementation Electronic National Traffic Information System Examiner of Vehicles Economic Sectors, Employment and Infrastructure Development Executive Committee
 Flight Inspection Unit Framework for Managing Programme Performance Information Forum of South African Directors-General 203 GA GFIP GHG GDP GDYC GTS HR/HRD IA ICAD ICAO ICT IMO IPAP IPTNs IPTTP IRERC IT KPI LDV LEU LPG General Aviation Gauteng Freeway Improvement Project Greenhouse Gas Gross Domestic Product Gender, Disability, Youth and Children Green Transport Strategy Human-Resource/Human-Resource Development Issuing Authority International Civil Aviation Day International Civil Aviation Organisation Information and Communications Technology International Maritime Organisation Industrial Policy Action Plan Integrated Public Transport Networks Integrated Public Transport Turnaround Plan Interim Rail Economic Regulatory Capacity Information Technology Key Performance Indicator Light Delivery Vehicle Live Enrolment Unit Liquefied Petroleum Gas MARPOL International Convention for the Prevention of Pollution from Ships Members of the Executive Council Medium Earth Orbit Search and Rescue Maritime and Training Long Distance (Main Line) Passenger Service Master Oversight and Surveillance Plan Memorandum of Understanding Maritime Rescue and Coordination Centre MECs MEOSAR MET MLPS MOSP MOU MRCC 98 204 MTEF MTP MTSF MTT M&E NA NADP NAFISAT NATMAP 2050 NCAP NCLB NCCRS NCOP NDP NEDLAC NGO NICRO NIP NLTA NQF NRSS NRTA NRTLEC NSRI NT PEPFRA PFMA PICC PMDS 99 Medium-Term Expenditure Framework Comprehensive Maritime Transport Policy Medium-Term Strategic Framework (2014-19) Ministerial Task Team Monitoring and Evaluation National Assembly National Airports Development Plan North East Africa Indian Ocean VSAT Network National Transport Master Plan 2050 National Civil Aviation Policy No Country Left Behind National Climate Change Response Strategy National Council of Provinces National Development Plan National Economic Development and Labour Council Non-governmental Organisation South African National Institute for Crime Prevention and the Reintegration of Offenders National
 Infrastructure Plan National Land Transport Act National Qualifications Framework National Road Safety Strategy National Road Traffic Act National Road Traffic Law Enforcement Code National Sea Rescue Institute National Treasury Ports Economic Participation Framework Public Finance Management Act Presidential Infrastructure Coordinating Commission Performance Management and Development System 205 PPP PRASA PRSA PRMG PSC PSP PTNG PTOG RABS RAF RFS ROD ROS RPAS RSA RSR RTIA RTMC RTRP SAAF SAATM SABC SABOA SACAA SACU SADC SAMSA SANRAL SAPS SARAP 100 Public-Private Partnership Passenger Rail Agency of South Africa Ports Regulator of South Africa Provincial Roads Maintenance Grant Passenger Safety Charge Private Sector Participation Public Transport Network Grant Public Transport Operations Grant Road Accident Benefit Scheme Road Accident Fund Road Freight Strategy Record of Decision Regulatory Outcomes Strategy Remotely Piloted Aircraft Systems Republic of South Africa Railway Safety Regulator Road Traffic Infringements Agency Road Traffic Management Corporation Revised Taxi Recapitalisation Programme South African Air Force Single African Air Transport Market South African Broadcasting Corporation Southern African Bus Operations Association South Africa Civil Aviation Authority Southern African Customs Union Southern African Development Community South African Maritime Safety Authority South African National Roads Agency Limited South African Police Services South African Road Assessment Program 206 SARPS SARS SASAR SCM SDIP SEIAs SIDS SIP SLA SMART SMME SMS SmS SMSR SOC SOEs SONA SRAB STARS STER TAT TETA TFR TNPA ToR TRP TVET UN USOAP VSAT 101 Standards and Recommended Practices South African Revenue Service South African Search and Rescue Organisation Supply Chain Management Service Delivery Improvement Plan Socio Economic Impact Assessment System Standard Instrument Departures Strategic Infrastructure Programme Service Level Agreement Specific, Measurable, Achievable,
 Realistic and Timely Small, medium and micro enterprises Senior Management Service Safety Management System Safety Management System Report State-Owned Company State-owned Enterprises State of the Nation Address Starting Regulatory Asset Base Standard Terminal Arrival Routes Single Transport Economic Regulator Transport Appeals Tribunal Transport Education and Training Authority Transnet Freight Rail Transnet National Ports Authority Terms of Reference Taxi Recapitalisation Programme Technical Vocational Educational and Training United Nations Universal Security Audit Programme Very Small Aperture Terminal 207 VTC WEGO WHO Vehicle Testing Centres Weighted Efficiency Gains from Operations World Health Organisation 102 208 National Council of Provinces 1.
REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE DIVISION OF REVENUE BILL [B2 - 2023], DATED 03 MAY 2022 The Select Committee on Appropriations, having considered the Division of Revenue Bill [B2 – 2023] (National Assembly-Section 76(1)), referred to it and classified by the JTM as a Section 76(1) Bill, reports as follows: 1.
Introduction and background Section 214(1) of the Constitution of the Republic of South Africa requires that every year a Division of Revenue Act should determine the equitable division of nationally raised revenue between national, provincial and local government.

In line with Section 7(1)(3) of the Money Bills and Related Matters Act No.

9 of 2009, as amended by Act No.

13 of 2018 (the Money Bills Act); Section 27(1) of the Public Finance Management Act No.
1 of 1999, as amended by Act 29 of 1999 (the PFMA), and Section 10(1) of the Intergovernmental Fiscal Relations Act No.

97 of 1997, the Minister of Finance, Mr E Godongwana, tabled the 2023 annual national Budget, including the Division of Revenue Bill [B2 – 2023] (the Bill) in the National Assembly on 22 February 2023.
The purpose of the Bill is to provide for – (a) the share of each sphere of government of the revenue raised nationally for the relevant financial year; (b) each province’s share of the provincial share of that revenue; and any other allocations to the provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations are or must be made.

2.
2.

Legislative framework guiding processing, consultations and public participation According to the above-mentioned legislative frameworks, the Bill must be processed following the procedure established by Section 76(1) of the Constitution.

On 23 March 2023, the Bill was passed by the National Assembly and referred to the National Council of Provinces (NCOP) and the Committee for consideration and report as required by Section 9(2) of the Money Bills Act.
As per the practise, the Committee invited all provincial portfolio committees on Finance and/or Treasury to be part of the briefing by National Treasury, on 08 March 2023.
The same approach was followed on 15 March 2023, when the Committee, in compliance with 1 209 Section 15 of the Money Bills Act, was briefed by the Parliamentary Budget Office (PBO) and, in compliance with Section 214(2) of the Constitution and Section 10(4) of the Intergovernmental Fiscal Relations Act, consulted with the Financial and Fiscal Commission (FFC).
Furthermore, during a virtual meeting on 22 March 2023, in compliance with Section 214(2) of the Constitution, the Committee consulted with the South African Local Government Association (SALGA).

As per Section 72 (1)(2) of the Constitution and 9(5)(b) of the Money Bills Act, the Committee facilitated public participation while processing the Bill.

To this end, advertisements calling for public submissions were published on the Parliamentary website and in print media in all 11 official languages.
Despite these efforts the Committee received only one written submission from the Congress of South African Trade Unions (COSATU), who also made an oral presentation during the meeting of 22 March 2023.

The NCOP, through the Committee Members, briefed provinces on the Bill between 17 and 21 April 2023.

The Committee received and considered the provincial negotiating mandates on 26 April 2023 and final mandates on 03 May 2023.
This served as an indication that provinces had fully participated in the processing of the Bill, as envisaged in Section 214(2) of the Constitution.

3.

Overview of the Bill The 2023 Budget remains steadfast in maintaining expenditure within the bounds of the medium-term fiscal framework, which is aimed at reducing the budget deficit and stabilising debt.
Consequently, any growth in allocations to the three government spheres for the 2023/24 financial year is incremental, in line with the fiscal policy priority of minimising expenditure growth.

The Budget prioritises additional allocations to address immediate spending pressures; setting aside a portion of higher-than-expected revenue to narrow the budget deficit; and implementing reforms to support economic growth.
The Budget makes provision for additional funding to the provincial equitable share (PES) over the 2023 Medium Term Expenditure Framework (MTEF) period to provide for the carry-through costs of the 2022/23 public service wage agreement; and to the local government equitable share (LGES) to increase the coverage of the provision of free basic services.
The 2023 Budget amounts to R2.03 trillion, which is a nominal increase of R10.4 billion or 0.5 percent from the adjusted allocation of R2.02 trillion in 2022/23.

Over the 2023 MTEF period, 2 210 the budget is projected to increase to R2.3 trillion by 2025/26 at an average rate of 5.5 percent.

as can be seen in Table 1 below.


Table 1: Equitable Division of Revenue Raised Nationally Spheres of Government Forward Estimates Column A Column B 2023/24 R’000 2024/25 R’000 2025/26 R’000 National allocations1,2 1 370 506 087 1 446 672 800 1 542 867 018 Provincial allocations 567 527 713 587 499 698 614 270 842 Local government 96 546 258 103 772 035 109 368 064 allocations Total allocations 2 034 580 058 2 137 944 533 2 266 505 924 1.
National share includes conditional allocations to provincial and local spheres, general fuel levy sharing with metropolitan municipalities, debt-service costs, the contingency reserve and provisional allocation 2.
The direct charges for the provincial equitable share are netted out Source: National Treasury (Division of Revenue Bill: 2023) As can be further seen in Table 1, for 2023/24, the national government receives R1.37 trillion, which is a decrease of R5.5 billion or 0.4 percent from the 2022/23 adjusted allocation of R1.38 trillion.

The provincial government sphere receives R567.5 billion and the local sphere, R96.5 billion.
Proportionally, the national share of the total nationally raised revenue, equals 67.4 percent, followed by provinces with a share of 27.9 percent, and local government with a share of 4.7 percent.

However, when excluding the contingency reserve and debt service costs the national government actually receives 49.1 percent of nationally raised revenue; the actual provincial share increases to 41.2 percent and the local government share to 9.1 percent.

4.
4.

Provincial allocations Table 2 below shows that total transfers to provinces in 2023/24 amount to R605.0 billion, of which R567.5 billion is the equitable share and R127.5 billion is conditional grants.

Included in the conditional grant funding is an unallocated amount of R146 million.

Table 2 also shows 3 211 the forward estimated allocations which are R587.5 billion in 2024/25 and R614.2 billion in 2025/26.
Table 2: Provincial equitable share and conditional grant allocations Column A Column B Equitable Conditional Forward Estimates Provinces share Grants 2023/24 2024/25 2024/25 2025/26 R’000 R’000 R’000 R’000 Eastern Cape 73 291 569 14 637 000 76 021 540 79 620 090 Free State 31 379 647 9 280 000 32 369 234 33 734 911 Gauteng 120 752 474 27 437 000 125 437 722 131 095 406 KwaZulu-Natal 115 947 671 26 320 000 118 858 268 123 812 221 Limpopo 65 349 432 11 329 000 67 973 726 71 502 229 Mpumalanga 46 674 214 9 734 000 48 436 625 50 751 835 Northern Cape 15 150 291 5 095 000 15 717 510 16 463 455 North West 40 096 285 9 093 000 41 764 581 43 842 665 Western Cape 40 096 285 14 474 000 60 920 492 63 448 030 Unallocated - 146 000 000 - - Total 567 527 713 127 545 000 587 499 698 614 270 842 4.1 Proposed changes to provincial equitable share allocations 4.1.1 Responding to existing spending pressures • A proposed total of R20 billion is added to help provincial health departments to cover the shortfall in the compensation budget: R5.7 billion in 2023/24; R6.7 billion in 2024/25; and R7.6 billion in 2025/26.
4 212 • A proposed total of R23.5 billion is added to provincial health departments for compensation of employees; health services backlogs including antiretroviral therapy and TB; laboratory services; medicine and other goods and medical supplies: R7.5 billion in 2023/24; R7.8 billion in 2024/25; and R8.1 billion in 2025/26.
• A proposed total of R31.1 billion is added for the carry-through costs of the implementation of the 2022/23 public service wage increase: R10.2 billion in 2023/24; R10.4 billion in 2024/25; and R10.5 billion in 2025/26.

• A proposed total of R631 million is added to fund arrears in the compensation of izinduna in KwaZulu-Natal.
4.1.2 Budget approved through the Budget Facility for Infrastructure (BFI) • A proposed total of R1.8 billion is added through the Budget Facility for Infrastructure (BFI) for the Coega Special Economic Zone for building of a new bulk sewer connection pipeline, upgrading bulk infrastructure and building critical water (return affluent) infrastructure: R298 million in 2023/24; R632 million in 2024/25; and R848 million in 2025/26.
4.2 Proposed changes to provincial grant allocations 4.2.1 Additions to baselines • R152 million is added to the Comprehensive Agriculture Support Programme (CASP) Grant baseline over the next three years through the Budget Facility for Infrastructure (BFI) for agri-hubs in KwaZulu-Natal.
• R1.6 billion is added to the Early Childhood Development (ECD) Grant over the MTEF to increase the number of children accessing the ECD subsidy, provide pre-registration support to ECD centres, and pilot a nutrition support programme and a results-based service delivery model.
• R1.8 billion is added to the Education Infrastructure Grant, of which R1.5 billion is over the next three years through the BFI for the Gauteng Schools Project; and R283 million is added in 2023/24 for repairing school infrastructure damaged by the April 2022 floods in KwaZulu- Natal and the Eastern Cape.

• R 1.5 billion is added to the National School Nutrition Programme Grant over the next three years to ensure that the meals provided to almost 9 million learners meet the nutritional requirements.
• R10.8 billion is added to the Provincial Roads Maintenance Grant over the next three years, of which R6.8 billion is to address the refurbishment backlog of provincial roads; R3.7 5 213 billion is to build rural bridges under the Welisizwe Rural Bridges Programme through the BFI; and R307 million is for the carry-through costs of the repair of provincial roads in the Eastern Cape and KwaZulu-Natal, damaged during the April 2022 floods.
• R1 billion is added to the indirect National Health Insurance Grant baseline in the latter two years of the 2023 MTEF, that is R432 million in 2024/25 and R569 million in 2025/26.

The additional funding has been brought forward by the rescheduling of the Health Facility Revitalisation Grant component within the Grant that is funded by the BFI.

4.2.2 Reduction to baseline A reduction of R372 million is made to the indirect National Health Insurance Grant baseline in 2023/24.
However, when taking into account the above-mentioned R1 billion addition, the net effect is an addition of R629 million over the MTEF.

4.2.3 Discontinuation of Grant The Provincial Emergency Housing Grant is discontinued and the funding of R1.1 billion is shifted to the Department of Human Settlements, reportedly to allow the Department to respond quickly in the event of an emergency housing need.

5.
5.

Local government allocations Over the MTEF, national transfers to local government increases from R164 billion in 2023/24 to R174.4 billion in 2024/25, growing at an annual average of 7.4 percent per annum to R183.3 billion in 2025/26.

Over the MTEF, a total of R309.7 billion is allocated through the local government equitable share (LGES), whilst a total of R163.6 billion is allocated through conditional grants.
The general fuel levy sharing with the metropolitan municipalities amounts to a total of R48.4 billion, increasing at an annual average of 3.2 percent over the same period.

In 2023/24, R164 billion is allocated as direct transfers to local government, while a further R8.5 billion is allocated to be spent by national departments on behalf of municipalities.
Of the direct transfers, 68.3 percent will be transferred as unconditional funds for municipalities to use according to the priorities determined by their councils through their budget processes.

The remaining 31.7 percent will be transferred through conditional grants.

In 2023/24, government is funding free basic services to 11.2 million households at a cost of R70.9 billion.
5.1 Changes to local government equitable share The LGES for 2023/24 amounts to R96.5 billion, which is R9.2 billion more than the R87.3 billion allocated in 2022/23.

The LGES also receives an additional R8.1 billion over the 6 214 medium term, aimed at increasing the coverage of the provision of free basic services for indigent households.

The LGES is projected to grow at an average nominal rate of 6.4 percent over the 2023 MTEF to R109.4 billion by 2025/26.
5.2 Changes to local government grants 5.2.1 Additions to baselines • R2.2 billion is added to the Urban Settlements Development Grant over the next three years through the BFI, to fund the implementation of projects in the eThekwini Metropolitan Municipality and the City of Johannesburg.
eThekwini is allocated R88 million in 2023/24 and R118 million in 2024/25 for the implementation of Phase 1 of the Avoca Node Programme, involving upgrading roads and storm water infrastructure; and Johannesburg is allocated R385 million in 2023/24, R654 million in 2024/25 and R963 million in 2025/26 for the implementation of the Lufhereng Mixed Use Development Programme, specifically to build municipal connection links for bulk electrical, water, sanitation, roads and storm water infrastructure that will serve 30 000 housing units.
• R461 million is added to the Public Transport Network Grant over the next three years through the BFI, to align funding with the revised implementation plan and cash flow projections for the City of Cape Town’s MyCiTi Public Transport Network Project, of which R105 million is allocated in 2023/24, R40 million in 2024/25 and R316 million in 2025/26.
• R3.5 million is added to the direct Regional Bulk Infrastructure Grant baseline over the next three years, through the BFI; with R1.2 billion being allocated to Sol Plaatje Local Municipality to refurbish and renew old water supply infrastructure; R1.4 billion going to Drakenstein Local Municipality to upgrade sanitation infrastructure; and R988 million being allocated to Nelson Mandela Bay Metropolitan Municipality to avert the water supply crisis from the ongoing drought over the short term, including fixing water leaks, upgrading water treatment works, borehole exploration and development, and upgrading a bulk water pipeline.
5.2.2 Reductions to baselines • A reduction of R21 million is made to the Public Transport Network Grant baseline over the two outer years of the 2023 MTEF; and will be reprioritised to fund the roll-out of the Single Integrated Ticketing System.

When the previously mentioned addition of R461 million is taken into account, the net effect is an addition of R440 million for the 2023 MTEF.
7 215 • A reduction of R136 million is made to the direct Regional Bulk Infrastructure Grant baseline in 2023/24, to align funding with the revised implementation plan and cash flow projections for the George Local Municipality’s Potable Water and Remedial Works Project, funded through the BFI.

Taking into account the previously mentioned addition of R3.5 billion, the net effect is an addition of R3.4 billion for the 2023 MTEF.
5.2.3 Discontinuation of Grant The Municipal Emergency Housing Grant is discontinued and the funding of R574 million is shifted to the Department of Human Settlements, reportedly to allow the Department to respond quickly in the event of an emergency housing need.

6.
6.

Substantive changes to Bill Clauses The following substantive changes to Clauses are proposed: • Subsection (3) of Section 5: Equitable division of local government share among municipalities is amended to allow for the amendment of LGES payment dates if the transfer of funds is stopped in terms of section 216(2) of the Constitution.
• In line with the change made in the 2022 Division of Revenue Amendment Act, Clauses are added to Section 7: Conditional allocations to provinces to allow for the pledging of provincial grants.
• Subsection (1)(g) of Section 13: Duties of receiving officer in respect of infrastructure conditional allocations to provinces is amended to include the transferring officer and relevant provincial treasury in the submission of final reports on infrastructure programmes partially or fully funded from the relevant grants.
• Subsection (3) of Section 16: Expenditure in terms of purpose and subject to conditions is amended to require that transfers made to other organs of state by receiving officers are gazetted before the transfers are made; and to make it explicit that if unspent, these allocations are subject to section 21(1) and must revert to the National Revenue Fund, unless approved for a roll-over.
• A clause is added to Section 18: Stopping of allocations to put deadlines in place for the submission of requests by transferring officers, provincial treasuries and receiving officers to stop allocations; and subsection (2)(b) is amended to include transferring officers in the National Treasury’s notification informing provincial treasuries of its intention to stop allocations.
8 216 • Subsection (2) of Section 22: Payment requirements is amended to include paragraph (e) to allow for amendments to the LGES amounts determined in terms of paragraph (a) if the transfer of funds is stopped in terms of section 216(2) of the Constitution or offset in terms of section 21(4)(a)(ii).
• Section 31: Liability for costs incurred in violation of principles of cooperative governance and intergovernmental relations is amended to include a Clause requiring that, where an organ of state decides to institute judicial proceedings against another organ of state, it must, within 10 working days of its decision, notify the National Treasury, the relevant provincial treasury, the Department of Cooperative Governance and the Auditor-General, of the details of compliance with Chapter 4 of the Intergovernmental Relations Framework Act, 2005, including an explanation of the failure to resolve the dispute.
7.

Changes to Schedules As a consequence of the shifting of the function and funds for the Municipal and Provincial Emergency Housing Grants from municipalities and provinces to the Vote of the Department of Human Settlements, the grants are omitted from Schedule 7, Parts A and B.

8.
8.

Submissions by stakeholders 8.1 South African Local Government Association (SALGA) While noting the increase of R14 billion in the allocation to local government, the South African Local Government Association (SALGA) indicated that the structural under-funding of the local government sphere and the realisation of the aspirations contained in the White Paper on Local Government of 1998 could not be addressed by a slight increase, considering the financial pressures facing municipalities.
Following a resolution at the 2022 Local Government Summit, SALGA had been working with the Financial and Fiscal Commission (FFC) to determine the ideal fiscal allocation to the local government sphere.

Thus far, a base document had been produced, that made recommendations on the horizontal allocation of nationally raised revenue.
The outstanding work included a study on the cost of running the business of a municipality; determining the ideal percentage of nationally raised revenue to be allocated to local government; and finalising a project plan to consult all stakeholders on intergovernmental fiscal relations (IGFR).

Preliminary findings would be presented at the Budget Forum in September or October 2023.
The current equitable share model underestimated the cost of providing services and overestimated the contribution of own revenues to funding these.

The current under-funding of local government and its consequent financial distress were a direct result of 9 217 the assumptions made in the White Paper on Local Government of 1998, many of which had proven to be incorrect or had not been implemented as envisaged.
SALGA supported the refinement of the LGES formula in an effort to arrive at a cost-reflective basis for rendering basic municipal services.

Despite this, the revenue adjustment factor applied to the community services component had not been revised.

SALGA submitted that it participated in the LGES Working Group undertaking reforms to refine the LGES formula.
SALGA welcomed the proposed debt relief measures for municipalities as they related to the Eskom debt take-over and awaited the envisaged National Treasury Circular with conditions for municipalities.

SALGA indicated that it expected to be consulted for comments on this Circular.
It further welcomed the LGES cushioning with additional funding against shortfalls due to the approved Eskom tariff increase of 18.65 percent; which it felt completely obliterated municipalities' ability to generate revenue from electricity services.
SALGA indicated that the proposed tax incentive for the installation of solar panels would encourage more migration from the grid to renewable energy and thus erode the most important revenue source for municipalities; while only benefiting the middle class, who were high energy consumers and made up a significant portion of reliable ratepayers, who are major contributors to cities’ electricity revenue.
Poor households would have to remain on the grid using prepaid and conventional metering, which already had above-inflation tariff increases.

An increased uptake of renewable energy and changes in consumer demand for electricity would affect not only a city’s finances but also its ability to cross-subsidise low-income residential customers.

To regulate this, SALGA recommended that it be consulted on the norms and standards for municipal surcharges on electricity.
Furthermore, SALGA submitted that it had launched a nation-wide citizen responsibility campaign, Asisho!

Let’s Say It!

The campaign aims to educate members of local communities about their duties and obligations towards the social and economic upliftment of their local areas by paying for municipal services rendered.

This would be extended to government and the private sector.
SALGA supported initiatives and efforts to review laws to improve governance in municipalities, as it would lead to better financial management and provision of services; and was further participating in all intergovernmental forums aimed at improving the performance of municipalities.

10 218 SALGA welcomed the updating of the municipal borrowing policy framework as well as the approval of the Municipal Fiscal Powers and Functions Amendment Bill.
According to SALGA, this would enable municipalities to charge development charges without regulatory obstacles.

However, SALGA expressed disappointment that the budget made no mention of government interventions to address debts owed to municipalities by government departments, as these departments did not prioritise budgeting for their municipal debts.
SALGA was further concerned that the horizontal budget allocations to municipalities located on the borders of the country did not take into account the fiscal and service delivery strain these municipalities were under due to uncontrolled and illegal immigration.

SALGA also noted with concern the national government's drive to convert municipal grants to Schedule 6 indirect grants.
SALGA welcomed the inclusion of technology and innovation as part of the Municipal Infrastructure Grant, the Regional Bulk Infrastructure Grant and the Water Services Infrastructure Grant; and stated that it would work collaboratively with the relevant departments to facilitate the implementation of the provisions.

SALGA recommended that the 2024/25 budget consultation process should address the following: • Government debt owed to municipalities.
• Fiscal and service delivery pressures on border municipalities.

• The reversal of the Municipal Emergency Housing Grant to local government.

• Any consolidation of conditional grants to be Schedule 5 grants.

8.2 Financial and Fiscal Commission (FFC) The Financial and Fiscal Commission (FFC) submitted that the upwards revision in the total allocation for provinces in the 2023 Budget was mainly in the provincial equitable share (PES).
This was to accommodate the 2022/23 public service wage increase costs, with a total of R31.1 billion being added for compensation of employees (COE) over the 2023 MTEF.

While adjustments had been implemented in both the 2022 and 2023 MTEF, they remained marginal and in the main were for COE and infrastructure repairs as a result of flooding.
The FFC further indicated that the small increase in the allocation for the Human Settlements Development Grant, implied a continued delay in reducing housing backlogs and improving housing and living conditions of poor households.

The FFC expressed concern over the shifting of the Provincial Emergency Housing Grant from provinces to the national Department of Human Settlements.
It was of the view that provinces were better placed to understand the need and implement than the national government, which is expected to play a monitoring role.
The FFC 11 219 was also concerned over the decrease of 7.6 percent in the allocation to the District Health Programmes Grant, given the expanded and important role of the Grant in supporting HIV/AIDS prevention programmes and specific interventions which include counselling and testing, prevention of mother-to-child transmission, ARV treatment and homebased care.
The FFC made the following recommendations with regard to provincial allocations: • The Department of Health should indicate how the reduced resources for the District Health Programmes Grant were likely to affect service delivery and how this tighter budget would be managed, especially given the expanded scope of the district health programme.
• While supporting funding for emergency housing needs as a result of flooding, the FFC reiterated its previous recommendation that provinces and municipalities should develop and implement adaptation and mitigation strategies to address natural disasters in the long term.

• Shifting conditional grants from provincial and local government spheres to the national sphere should be the last resort, as lower spheres of government are better positioned to understand delivery needs.
The FFC welcomed the additional allocation to local government as it would assist with alleviating some of the pressures municipalities were faced with.

However, it emphasised the national and provincial spheres' role in supporting municipalities in fulfilling their constitutional mandate.

The FFC further welcomed efforts to keep LGES growth rates above inflation, indicating that the positive real growth rate would go a long way in offsetting the ever-increasing cost of delivering basic services.
However, the FFC pointed out that the marginal increase placed added pressure on municipalities' ability to deliver services, given the current economic situation.

The FFC welcomed additions to the baselines of certain direct conditional grants over the 2023 MTEF; but pointed out that during the 2023 MTEF, municipal conditional grant baselines were expected to be reduced by over R735 million, of which R574 million would come from direct grants.
This was due to the discontinuation of the Municipal Emergency Housing Grant and the funding being shifted to the national Department of Human Settlements.

The FFC indicated that the steady decline in real growth rates of municipal conditional grants in 2023/24, with no growth in the outer years of the MTEF, would negatively impact on the outcomes of the economic recovery plan which was based on infrastructure-led growth programmes.
The FFC further noted the changes made to the Municipal Infrastructure 12 220 Grant, with the establishment of an indirect component, and the basis of identifying municipalities needing support.
The FFC made the following recommendations with regard to local government allocations: • While noting the proposed increase in the total allocation to the LGES over the medium term, the FFC re-emphasised its previous recommendation for a fundamental review of local government transfers, especially from the perspective of the vertical division of revenue.

This review should also include a proper re-examination of the assumptions used in the Local Government White Paper of 1998.
• Capacity-building efforts should be comprehensively consulted on with, and agreed to by, municipalities.

Capacity-building actions should be linked to a municipality-specific diagnosis of capacity challenges or deficits.

National Treasury should consider the consolidation of local government conditional grants into an integrated financial flow.
• The roles and functions of the role players in the District Development Model as well as its funding requirements and responsibilities, should be clearly determined, to eliminate any ambiguity.
8.3 Parliamentary Budget Office (PBO) The Parliamentary Budget Office (PBO) indicated that, for the 2023/24 financial year, 82 percent of the R695 billion allocated to provincial government was in the form of the provincial equitable share (PES) and 18 percent in conditional grants; while the local government allocation of R147.8 billion was made up of 59 percent equitable share, 32 percent in conditional grants and 9 percent in general fuel levy sharing with metropolitan municipalities.
The PBO stated that the total average annual increase in the PES over the MTEF was 2.5 percent.

The largest average annual increase was 3.1 percent to Limpopo.

Overall, the estimated total of increases was between R10 billion and R11.4 billion, mainly to provide for the carry- through effect of the 2022/23 public service wage increase.

The PBO highlighted that it was important to note the decrease in the total allocation in 2023/24 from the 2022/23 estimate.
The PBO submitted that most conditional grants had increased since the revised estimates in the 2022/23 financial year, and highlighted the following: • The District Health Programme Grant decreased by R2.2 billion.

• The National Tertiary Services Grant decreased by R282 million.

13 221 • The Education Infrastructure Grant increased by R1.4 billion.

• The Human Settlements Development Grant increased by R688 million.

• The Provincial Roads Maintenance Grant increased by R3.2 billion.
Regarding the transfers to local government, the PBO observed that in the 2023/24 financial year, R164 billion was allocated as direct transfers, while a further R8.5 billion was to be spent by national departments on behalf of municipalities.

PBO added that of the direct transfers, 68.3 percent would be transferred as unconditional grants funds for municipalities to use according to the priorities determined by their councils through their budget processes.
The remaining 31.7 percent would be transferred through conditional grants.

Furthermore, government was funding free basic services to 11.2 million households at a cost of R70.9 billion in 2023/24.
8.4 Congress of South African Trade Unions (COSATU) While the Congress of South African Trade Unions (COSATU) noted the positive budgetary allocations contained in the Bill, it was deeply concerned that the Bill continued along the path of seeking to balance the books by stealing from nurses, teachers and other hard working public servants.
COSATU was further concerned that provincial governments responsible for key expenditure departments, routinely engaged in fiscal dumping in the final quarter of the financial year.

COSATU found it unacceptable that the Social Relief of Distress (SRD) Grant had not been adjusted for inflation since its inception in 2020; stating that the Grant needed to be retained beyond 2024 and be increased to the food poverty line of R624.
COSATU found it concerning that National Treasury and the Department of Social Development had failed to address the administrative challenges of this Grant that had led to under-spending.

It recommended that grant recipients be paid electronically and also be placed in skills training and employment placement programmes; and that the Grant be the foundation for the introduction of a basic income grant.
While welcoming the additional funding for local government, COSATU bemoaned the lack of decisive intervention by the Department of Cooperative Governance and SALGA in the 90 percent of municipalities experiencing financial distress.

Local government was in real trouble with many rural municipalities no longer being able to provide basic services.

Furthermore, up to 20 municipalities in the Northern and Eastern Cape, North West and Free State routinely 14 222 failed to pay their employees.
In addition, there was no indication as to what the proposed additional funding was for, which municipalities would receive it and how it would be used to re-capacitate local government.

9.

Provincial mandates The Committee met on 26 April and 03 May 2023, respectively, to consider negotiating and final mandates from provinces.

National Treasury’s written responses to issues raised in negotiating mandates were sent to provinces on 28 April 2023.

9.1.

Negotiating mandates 9.1.1.


Eastern Cape supported the Bill and made comments and recommendations.

9.1.2.

Free State supported the Bill and made comments.

9.1.3.

Gauteng supported the Bill and made recommendations.

9.1.4.

KwaZulu-Natal supported the Bill.

9.1.5.

Limpopo supported the Bill and made recommendations.

9.1.6.

Mpumalanga supported the Bill.

9.1.7.

Northern Cape supported the Bill, subject to the consideration of proposed amendments.

9.1.8.
9.1.8.

North West supported the Bill and made recommendations.

9.1.9.

Western Cape did not support the Bill and provided reasons.

9.2.

Final mandates 9.2.1.

Eastern Cape supported the Bill.

9.2.2.

Free State supported the Bill.

9.2.3.

Gauteng supported the Bill.

9.2.4.

KwaZulu-Natal supported the Bill.

9.2.5.

Limpopo did not submit a final mandate.

9.2.6.

Mpumalanga supported the Bill.

9.2.7.

Northern Cape supported the Bill.

15 223 9.2.8.

North West did not submit a final mandate.


9.2.9.

Western Cape did not support the Bill.

10.


Findings and Observations Having deliberated and considered all the submissions made by the above stakeholders on the Division of Revenue Bill [B2 - 2023], the Select Committee on Appropriations made the following findings and observations: 10.1 The Committee welcomed the Bill, which proposes spending to the amount of R2.03 trillion, with a nominal increase of R10.4 billion or 0.5 percent from the adjusted allocation of R2.02 trillion in 2022/23.
Moreover, the Committee noted that the budget is projected to increase to R2.3 trillion by 2025/26 at an average rate of 5.5 percent.

10.2 The Committee noted that the Bill proposes a total transfer of R605 billion to provinces in 2023/24, of which R567.5 billion is the equitable share and R127.5 billion, conditional grants.
Moreover, the Committee noted that the conditional grant funding includes an unallocated amount of R146 million; and that forward estimated provincial allocations are R587.5 billion in 2024/25 and R614.2 billion in 2025/26 respectively.
10.3 The Committee welcomed the fact that the Bill made provision for additional funding to the provincial equitable share (PES) over the 2023 Medium Term Expenditure Framework (MTEF) period to provide for the carry-through costs of the 2022/23 public service wage agreement; and to the local government equitable share (LGES) to increase the coverage of the provision of free basic services.
10.4 The Committee remained concerned about the National Treasury’s inability to include additional resources to assist local government to address the negative impact of load shedding on municipal infrastructure, maintenance and provision of basic services; including dealing with instances of theft during electricity blackouts.
10.5 The Committee was concerned about the fact that the compensation of izinduna in KwaZulu-Natal, amounting to R631 million which was added to the PES, had been in arrears for ten years, since the Presidential Proclamation in 2013; and the fact that KwaZulu-Natal had been the only province who did not implement this timeously and only started paying salaries from 15 December 2016.
16 224 10.6 While welcoming the fact that government has taken lessons from the KwaZulu-Natal and Eastern Cape floods, which occurred in April 2021, and has put in place interventions to ensure that there are mechanisms to promptly respond to such disasters and that temporary housing for victims can reportedly be procured quicker and more cost effectively; the Committee noted the concern expressed by various stakeholders over the shifting of the Provincial and Municipal Emergency Housing Grants to the national Department of Human Settlements.
10.7 The Committee was concerned about the fact that there was no additional funding earmarked to assist some provincial health departments to address medico-legal claims, which are seemingly absorbing large amounts of health budgets in various provinces, resulting in opportunity cost for other medical treatments and negatively impacting on patients.
10.8 Whilst the Committee welcomed the R3.7 billion added to the Provincial Roads Maintenance Grant for the building of modular steel bridges in rural areas, it remained concerned about the fact that there had been delays in certain provinces submitting project plans in order to benefit from this funding; and further noted that a portion of this funding remained unallocated.
10.9 The Committee expressed concern that the Budget, and specifically the division of revenue, did not seem to reflect what was contained in the Economic Recovery and Reconstruction Plan (ERRP); the National Development Plan (NDP); and the Medium Term Strategic Framework (MTSF), and specific reference was made to the President’s announcement of an infrastructure- led economic recovery.
10.10 The Committee was concerned about the lack of urgency in allocating additional resources in the 2023 Budget to deal decisively with the Gauteng e-toll challenges as it had been resolved that the Province would pay 30 percent of the debt from its own revenues while the national government would assist with 70 percent.
10.11 The Committee noted the fact that there were government programmes in place targeting provinces, to see how connectivity could be rolled out in schools across the country, particularly in rural areas.

It also noted that the implementation of ICT and broadband plans was a function of the Department of Communications and Digital Technologies, who had the mandate and the funding to accelerate this process.
17 225 10.12 The Committee noted the fact that the National Treasury, in addition to issuing a set of regulations and circulars for municipalities, had developed guidelines as well as conducted extensive training for municipalities, and welcomed the fact that through the Financial Management Improvement Programme, National Treasury had placed advisers in various municipalities to improve municipal finances.
10.13 The Committee noted the real challenge of many municipalities living beyond their means and experiencing budgeting and cash flow challenges; and welcomed the attempts by SALGA, together with relevant government departments, to arrest the situation, which had resulted in the decline of unfunded budgets from 112 to 106 currently.
10.14 While the Committee was concerned that the cost of fuel was not included when calculating the cost of providing basic services in municipalities, it noted that National Treasury was working with national sector departments annually to get such information.

However, it also noted that more work needed be done to refine this and that an LGES task team was looking at how the actual cost of providing basic services could be determined going forward.
10.15 The Committee was concerned about the R461 million added over the MTEF to the Public Transport Network (PTN) Grant for the City of Cape Town’s MyCiti public transport network project, given the project’s reported under-expenditure for the past years; and also about other cities who had reportedly under-spent on this Grant.

10.16 The Committee remained concerned about the lack of urgency to address the huge amount of monies owed to municipalities by government departments, households and businesses.
The Committee agreed with SALGA, which was of the view that such government departments and business people in particular, should be setting a good example in assisting municipalities to address the culture of non-payment to improve revenue collection.
10.17 The Committee was concerned about the impact and role of the Budget Forum in ensuring that issues affecting local government are addressed and the fact that National Treasury had consulted the national Department of Human Settlements without the involvement of SALGA with regards to shifting parts of the Municipal Infrastructure Grant (MIG) to an indirect grant.

The Committee believed that this was not in keeping with the spirit of intergovernmental relations.
18 226 10.18 The Committee expressed serious concern over the reported 90 percent of municipalities currently in financial distress and in particular the 27 who are failing to pay salaries and transfer deductions, as cited by COSATU’s submission, and believed that decisive action needed to be taken to arrest the current situation.

11.
11.

Recommendations The Select Committee on Appropriations, having considered submissions from various stakeholders on the Division of Revenue Bill [B2 - 2023], recommends as follows: 11.1 The Minister of Finance should gazette the allocations in the Division of Revenue Bill [B2-2023], which amounts to R2.03 trillion of nationally raised revenue, with a nominal increase of R10.4 billion or 0.5 percent from the adjusted allocation of R2.02 trillion in 2022/23.
When gazetting, National Treasury should amend the necessary health conditional grant frameworks in terms of Section 16, to allow funds to be used to address the measles outbreak in a number of provinces.

The National Treasury, together with provincial treasuries, should ensure that all provinces develop proper systems to manage the expenditure of their provincial allocation for 2023/24 according to approved plans and grant frameworks.
11.2 The National Treasury, together with the Department of Cooperative Governance and the South African Local Government Association (SALGA), should quantify the impact of load shedding on municipalities with a view to make additional resources available during the adjustments budget for municipalities to ensure that interruptions of basic services during the electricity blackouts are minimised and criminal elements are addressed.

Parliament should continue to monitor progress in the next budget cycle.
11.3 The National Treasury, together with the Department of Traditional Affairs, the KwaZulu-Natal Department of Cooperative Governance and the Provincial Treasury, should work out a process to ensure that the long overdue compensation of izinduna is paid out immediately, especially given the fact that the Presidential Proclamation was issued ten years ago.
Whilst the Committee recognises the impact of budget cuts, it is of the view that for izinduna not to be compensated as agreed for the past 10 years is highly unacceptable.
19 227 11.4 The National Treasury, together with the Department of Health, provincial health departments and provincial treasuries, should work out mechanisms to address the issue of medico-legal claims, which are absorbing some of the provincial health departments’ budgets at the expense of other important medical treatments budgeted for.
11.5 The National Treasury, together with the Department of Health, should expedite the process of finalising discussions around the funding of a plan to address maintenance and all health infrastructure backlogs as recently identified by the Department across all provinces.

The Committee is of the view that maintenance of health infrastructure and facilities has been a challenge for government and this should be urgently addressed.

Parliament should continue to monitor progress.


11.6 The Department of Basic Education, together with provincial education departments, should develop a clear plan and monitoring mechanisms to ensure that pit latrines are eradicated in all schools across the country.
The Committee recognises the fact that the School Infrastructure Backlogs Grant has been merged with the Education Infrastructure Grant, however implores the education sector to work together to find an urgent solution with specific timeframes to address this problem.
11.7 Whilst the Committee welcomes the finalisation of the function shift of Early Childhood Development (ECD) from the Department Social Development to the Department of Basic Education, it is of the view that the R1.6 billion added to the ECD Grant should also assist to improve remuneration packages for caregivers as part of improving their working conditions.
11.8 The National Treasury and the Department of Transport, together with provincial treasuries, should ensure that mechanisms are put in place to assist provincial departments of transport to fast-track their project plans to apply for funding through the Provincial Roads Maintenance Grant for the building of modular steel bridges in rural areas, particularly in areas which have been badly affected by floods and where school children still travel long distances without scholar transport.
11.9 The National Treasury, together with Cabinet and the Gauteng Province, should ensure that decisive action is taken to implement the resolution on e-tolls, where the Province would pay 30 percent of the debt from its own revenues while the national government would assist with 70 percent.

The Committee believes that this matter is long overdue and needs to be addressed expeditiously by all affected parties.
20 228 11.10 The National Treasury, together with the Department of Communications and Digital Technologies, should ensure that public service institutions located in rural and township areas are prioritised in the roll-out of broadband to accelerate implementation of connectivity programmes for schools and other similar institutions where poor communities across the country would benefit.
11.11 There is a need to accelerate the pace at which the development of the coastal line is progressing in the Eastern Cape in order to address the impact of the triple challenges and the development of the oceans economy to benefit the local people.

The Committee is of the view that this should form part of the district development model (DDM), if government is to make the necessary impact on the ground.
11.12 The National Treasury should continue to issue regulations, circulars and guidelines to assist municipalities as well as to conduct training sessions for municipal officials through the Financial Management Improvement Programme, in order to improve financial management and compliance in local government in line with the Auditor- General’s recommendations.

Parliament should continue to monitor progress in the next budget cycle.
11.13 The National Treasury, together with the Department of Cooperative Governance, the South African Local Government Association (SALGA) and the local government equitable share (LGES) task team, should expedite the process of mapping out the modalities to ensure that the cost of providing basic services in municipalities is accurately reflected in municipal budgets.

Parliament should continue to monitor progress in the next budget cycle.
11.14 While welcoming the decision by government to streamline the process to promptly respond to disasters and floods based on the KwaZulu-Natal experience, the Committee is of the view that the National Treasury needs to ensure that proper consultation is conducted with all stakeholders, including the South African Local Government Association (SALGA), when such changes affect other spheres of government.
The Committee believes that the Budget Forum is also an important structure that needs to dedicate enough time to discuss issues affecting local government.

11.15 The National Treasury, together with the Department of Transport, provincial treasuries and cities earmarked for the Public Transport Network Grant, should ensure that mechanisms are developed for municipalities to improve expenditure as well as comply 21 229 fully with the Grant Framework.
Parliament should continue to monitor progress in the next budget cycle.
11.16 The National Treasury, together with the Department of Cooperative Governance, provincial cooperative governance departments and the South African Local Government Association (SALGA), should continue to develop the necessary interventions to assist the 90 percent of municipalities in financial distress; and in particular the 27 that, according to the Congress of South African Trade Unions (COSATU), are not able to pay salaries for workers and transfer deductions.
Parliament should continue to monitor progress in this regard.

11.17 The Committee believes that a proper review of local government transfers is needed, especially of the vertical division of revenue, taking into account the increasing number of dysfunctional and financially distressed municipalities across the country, the factors of geography and rurality and the nature of local development; to ensure proper equitable sharing of nationally raised revenue amongst the three spheres of government.
This should include re-examining the assumptions in the Local Government White Paper of 1998, testing their current relevancy.

The Committee supports the proposed increased allocations to rural municipalities to deal with historic infrastructure backlogs; and believes that provinces with such backlogs need more investment in rural communities to fight the harsh realities of the triple challenges, causing an influx into the big cities.
11.18 The Committee reiterates its previous recommendation that any shifting or restructuring of conditional grants from direct to indirect grants, requires a clear case-by-case analysis instead of using a blanket approach, as well as proper consultations with local government, with capacity to implement at the centre.
A big portion of the increased grant allocations to local government is in the form of indirect grants, meaning that municipalities will not have control over the funds, and this may result in a function shift without due processes.

National Treasury should consider the South African Local Government Association’s (SALGA’s) input on this, as well as the study conducted by the Financial and Fiscal Commission (FFC) on this matter, to enhance the process.

12.
12.

Committee decision 22 230 The Select Committee on Appropriations, having considered the Division of Revenue Bill [B2 – 2023] (National Assembly-Section 76(1)) referred to it and classified by the Joint Tagging Mechanism as a Section 76 Bill, reports that it has agreed to the Bill without any proposed amendments.

The Democratic Alliance (DA), the Economic Freedom Fighters (EFF) and the FF Plus (FF+) reserved their positions on the Report.

Report to be considered.

23 231