DEPARTMENT OF TRANSPORT VOTE NO. 37pmg-assets.s3-website-eu-west-1.amazonaws.com/151015dot.pdf · over 80% moving along this corridor by road) and Gauteng is South Africa’s economic

Annual Report for 2014/15 Financial Year Vote 37: Department of Transport

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DEPARTMENT OF TRANSPORT

VOTE NO. 37 ANNUAL REPORT

2014/2015 FINANCIAL YEAR


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Department of Transport

Annual Report 2014/15

The Annual Report 2014/15 for the National Department of Transport

is compiled with information from departmental and other sources.

For more information, please contact:

Strategic Planning and Cluster Coordination,

National Department of Transport

Private Bag X193

Pretoria, 0001, South Africa

Tel: +27 12 3093893

Fax: +27 12 3093590

The Annual Report will be published on www.transport.gov.za

ISBN 978-0-621-43991-5 | RP 303/2015

http://www.transport.gov.za/


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Contents

PART A: GENERAL INFORMATION .................................................................................. 5

1. DEPARTMENT GENERAL INFORMATION ..................................................................................... 6

2. LIST OF ABBREVIATIONS/ACRONYMS ......................................................................................... 7

3. FOREWORD BY THE MINISTER OF TRANSPORT ........................................................................ 12

4. STATEMENT BY THE DEPUTY MINISTER OF TRANSPORT .......................................................... 18

5. REPORT OF THE ACCOUNTING OFFICER ................................................................................... 22

6. STRATEGIC OVERVIEW .............................................................................................................. 38

7.1. Vision ................................................................................................................................. 38

7.2. Mission .............................................................................................................................. 38

7.3. Values ................................................................................................................................ 38

7. LEGISLATIVE AND OTHER MANDATES ...................................................................................... 38

8. ORGANISATIONAL STRUCTURE ................................................................................................. 40

9. ENTITIES REPORTING TO THE MINISTER ................................................................................... 41

PART B: PERFORMANCE INFORMATION ....................................................................... 44

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................................. 45

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ...................................................................... 45

2.1 Service Delivery Environment ........................................................................................... 45

2.2 Service Delivery Improvement Plan .................................................................................. 46

2.3 Organisational environment ............................................................................................. 50

2.4 Key policy developments and legislative changes ............................................................ 51

3. STRATEGIC OUTCOME ORIENTED GOALS ................................................................................. 52

4. PERFORMANCE INFORMATION BY PROGRAMME .................................................................... 54

4.1 PROGRAMME 1: ADMINISTRATION .................................................................................. 54

4.2 PROGRAMME 2: INTEGRATED TRANSPORT PLANNING (ITP) ........................................... 64

4.3 PROGRAMME 3: RAIL TRANSPORT ................................................................................... 72

4.4 PROGRAMME 4: ROAD TRANSPORT ................................................................................. 77

4.5 PROGRAMME 5: CIVIL AVIATION ...................................................................................... 83

4.6 PROGRAMME 6: MARITIME TRANSPORT ......................................................................... 91

4.7 PROGRAMME 7: PUBLIC TRANSPORT ............................................................................... 97

5. TRANSFER PAYMENTS ............................................................................................................. 105

5.1. Transfer payments to public entities .............................................................................. 105

5.2. Transfer payments to all organisations other than public entities ................................. 114


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6. CONDITIONAL GRANTS ........................................................................................................... 118

6.1. Conditional grants and earmarked funds paid ............................................................... 118

7. DONOR FUNDS ........................................................................................................................ 128

7.1. Donor Funds Received .................................................................................................... 128

8. CAPITAL INVESTMENT ............................................................................................................. 129

8.1. Capital investment, maintenance and asset management plan .................................... 129

PART C: GOVERNANCE ................................................................................................. 130

1. INTRODUCTION ....................................................................................................................... 131

2. RISK MANAGEMENT ................................................................................................................ 131

3. FRAUD AND CORRUPTION ...................................................................................................... 131

4. MINIMISING CONFLICT OF INTEREST ...................................................................................... 132

5. CODE OF CONDUCT ................................................................................................................. 133

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ..................................................................... 133

7. PORTFOLIO COMMITTEES ....................................................................................................... 133

8. SCOPA RESOLUTIONS .............................................................................................................. 134

9. PRIOR MODIFICATIONS TO AUDIT REPORTS .......................................................................... 135

10. INTERNAL CONTROL UNIT ....................................................................................................... 136

11. INTERNAL AUDIT AND AUDIT COMMITTEES ........................................................................... 137

12. AUDIT COMMITTEE REPORT ................................................................................................... 139

PART D: HUMAN RESOURCE MANAGEMENT ............................................................. 142

1. INTRODUCTION ....................................................................................................................... 143

2. OVERVIEW OF HUMAN RESOURCES ....................................................................................... 143

3. HUMAN RESOURCES OVERSIGHT STATISTICS ......................................................................... 144

PART E: FINANCIAL INFORMATION.............................................................................. 178

1. REPORT OF THE AUDITOR GENERAL ....................................................................................... 179

2. ANNUAL FINANCIAL STATEMENTS .......................................................................................... 185


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PART A: GENERAL INFORMATION


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1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: Forum Building

159 Struben Street

Pretoria

POSTAL ADDRESS: Private Bag X193

Pretoria

0001

TELEPHONE NUMBER/S: 027 12 309 3000 / 3893

FAX NUMBER: 027 12 309 3590

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.transport.gov.za

mailto:[email protected]

http://www.transport.gov.za/


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2. LIST OF ABBREVIATIONS/ACRONYMS

A

AARTO Administrative Adjudication of Road Traffic Offences Act

ABS Anti-lock Braking System

ACSA Airports Company of South Africa

AFCAC African Civil Aviation Commission

AG Auditor-General

AGM Annual General Meeting

AO Accounting Officer

APP Annual Performance Plan

ATM Air Traffic Management

ATNS Air Traffic and Navigation Services

AU African Union

AVSEC Aviation Security

B

BAS Basic Accounting System

B-BBEE Broad-Based Black Economic Empowerment

BEE Black Economic Empowerment

BRT Bus Rapid Transit System

C

CARCOM Civil Aviation Regulation Committee

C-BRTA Cross-Border Road Transport Agency

CEO Chief Executive Officer

CFO Chief Financial Officer

CI Corporate Identity

CIO Chief Information Officer

CLC Civil Liability Convention

COLTO Committee of Land Transport Officials

COO Chief Operations Officer

COP17 17th Conference of Parties to the United Nations Framework

Convention on Climate Change (UNFCCC)

COTO Committee of Transport Officials

CSIR Council for Scientific and Industrial Research

CSSS Comprehensive Social Security System

D

DBSA Development Bank of Southern Africa

DEA Department of Environmental Affairs

DG Director-General

DLCA Driver's Licence Card Account

DLCPF Driver's Licence Card Production Facility

DLTC Driving Licence Testing Centre


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DM District Municipality

DORA Division of Revenue Act

DoT Department of Transport

DPME Department of Monitoring and Evaluation

E

EC Eastern Cape

e-NATIS Electronic National Administration Traffic Information System

EPM Enterprise Portfolio Management

EPMS Electronic Performance Management System

EPWP Expanded Public Works Programme

ESB Enterprise Service Bus

EXCO Executive Committee

F

FIFA Federation Internationale de Football Association

FS Free State

G

GFIP Gauteng Freeway Improvement Project

GHG Greenhouse Gases

GP Gauteng Province

H

HOD Head of Department

HRD Human Resources Development

HR Human Resources

I

IAAIIB Independent Aircraft Accident and Incident Investigation Body

ICAD International Civil Aviation Day

ICAO International Civil Aviation Organization

ICT Information and Communication Technology

IDP Integrated Development Plan

IFMS Integrated Financial Management System

ILO International Labour Organisation

IMO International Maritime Organisation

IOPC International Oil Pollution Compensation

IPAP II Industrial Policy Action Plan

IPTNs Integrated Public Transport Networks

IR International Relations

IRER Interim Rail Economic Regulator

IRPTNs Integrated Rapid Public Transport Networks

ISPS International Ship and Port Security

IT HUB Information Technology HUB

IT Information Technology


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ITP Integrated Transport Planning

K

KSD IRTP King Sabatha Dalindyebo Integrated Rural Transport Plan

KZN KwaZulu-Natal

L

LCU Live Capture Unit

LP Limpopo Province

LRIT Long Range Identification and Tracking

M

M&E Monitoring and Evaluation

MARPOL International Convention for the Prevention of Pollution from Ships

MBMs Market Based Measures

MEC Member of the Executive Council

MEOSAR Medium Orbit Search and Rescue

MEPC Marine Environment Protection Committee

MINMEC Ministers and Members of Executive Council

MoU Memorandum of Understanding

MP Member of Parliament

MRCC Maritime Rescue Coordination Centre

MSAC Marine Safety Advisory Council

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

N

NADP National Airports Development Plan

NAMAs Nationally Appropriate Mitigation Actions

NASP National Security Programme

NATFC National Air Transport Facilitation Committee

NATMAP National Transport Master Plan

NDP National Development Plan

NDoT National Department of Transport

NC Northern Cape

NEPAD New Partnership for African Development

NGP New Growth Path Framework

NHTS National Household Travel Survey

NLTA National Land Transport Act

NLTIS National Land Transport Information System

NLTIS National Land Transport System

NMT Non-motorised Transport

NPTR National Public Transport Regulatory Entity

NREP National Rolling Enforcement Plan

NTIP National Traffic Intervention Police Unit

NTVs New Taxi Vehicles


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O

ODG Office of the Director-General

OL Operating Licence

OTV Old Taxi Vehicle

P

PCCs Ports Coordinating Committee

PCOT Portfolio Committee on Transport

PFMA Public Finance Management Act (Act No. 01 of 1999)

PFU Project Finance Unit

PIDA Programme for Infrastructure Development

PLTF Provincial Land Transport Framework

PMU Project Management Unit

POA Programme of Action

PPP Public-Private Partnership

PRASA Passenger Rail Agency of South Africa

PRE Provincial Regulatory Entity

PRMG Provincial Road Maintenance Grant

PRSA Ports Regulator of South Africa

PSP Private Sector Participation

PTIS Public Transport Infrastructure and Systems

PTOG Public Transport Operations Grant

PTS Public Transport Strategy

R

RABS Road Accident Benefit Scheme

RAF Road Accident Fund

RER Rail Economic Regulator

RFP Request for Proposals

RIFSA Road Infrastructure Strategic Framework for South Africa

RISFSA Road Infrastructure Strategic Framework for South Africa

RMC Risk Management Committee

ROI Return on Investment

RSR Railway Safety Regulator

RTIA Road Traffic Infringement Agency

RTMC Road Traffic Management Corporation

RTSSA Rural Transport Strategy for South Africa

S

SABOA Southern African Bus Operators Association

SA South Africa

SABS South African Bureau of Standards

SACAA South African Civil Aviation Authority

SACU South African Customs Union

SADC Southern African Development Community

SAMSA South African Maritime Safety Authority

SANRAL South African National Roads Agency Limited


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SANTACO South African National Taxi Council

SAR Search and Rescue

SARPs Standards and Recommended Practices

SATS South African Transport Services

SBO Small Bus Operators

SITA State Information Technology Agency

SLA Service Level Agreement

SOEs State Owned Entities

STER Single Transport Economic Regulator

STWC Standards of Training Certification and Watch Keeping

T

TETA Transport Education and Training Authority

TIS Transport Information Systems

TKC Trans Kalahari Corridor

TRP Taxi Recapitalisation Programme

U

UN United Nations

UNFCC United Nations Framework Convention on Climate Change

W

WC Western Cape


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3. FOREWORD BY THE MINISTER OF TRANSPORT

I am pleased to present the Annual Report of the Department of Transport for the 2014/15

financial year. The financial year under review marked the end of administration of

Government for the Medium Term Strategic Framework (MTSF) 2009 – 2014. It is therefore

appropriate that we assess our achievements and remaining challenges as we plan for the

next MTSF.

Single Transport Economic Regulator

The development of Single Transport Economic Regulator (STER) Bill is at an advance

stage and will be brought to Cabinet for consideration and approval in the new financial year.

Once implemented, the STER will aim to provide, enhance and guarantee private sector

investments in areas that were exclusively State sectors. The STER will also manage the

relationship between infrastructure owners and operators in a transparent manner in how

tariffs are set, open up for competition in a regulated way and provide opportunities for

access and competition for both the market and in the market.

In terms of Rail Economic Regulation, I have entered into a Memorandum of Understanding

(MoU) with my colleague at the Department of Public Enterprises to establish an Inter-

Ministerial Task Team to develop an Interim Rail Economic Regulator (IRER) for the rail

sector. The IRER will develop a nucleus of skills and capacity in the area of economic

regulation in the rail sector and provide the necessary advice and recommendations to the

Ministers of Transport and Public Enterprises on issues including price-setting, access to the

network and dispute resolution.

Private Sector Participation (PSP) Framework

The sector is still faced with the challenge of ensuring that capital investment levels are

increased for infrastructure maintenance and expansion. In an effort to enhance and harness

private sector investments in the transport sector, the Department is on course to develop

and implement the PSP Framework, which will create space for private sector to invest and

help develop additional carrying capacity in the railway and maritime environments.

N3 De Beers Pass (Harrismith Hub)

The N3 corridor between Durban and Gauteng is South Africa’s principal freight and logistics

corridor. Durban is by far South Africa’s busiest port (over 40 % of imports and exports with

over 80% moving along this corridor by road) and Gauteng is South Africa’s economic

heartland (generating over 33 % of the country’s GDP). Hence, the N3 highway and

complimentary modes are vital for South Africa’s economy and economic growth.

The upgrading of the N3 corridor and the reduction in logistics costs have been identified as

national priorities by the Presidential Infrastructure Coordinating Committee (PICC). The

Strategic Infrastructure Programme (SIP) 2 deals with the Durban-Free State-Gauteng

Logistics and Industrial Corridor. The road network system into the port is indeed a critical


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part of the logistics chain and vital to ensure the seamless flow of freight. The N3 route

forms the “backbone” of the logistics corridor between Gauteng and KwaZulu-Natal via the

Free State. In support of the priorities set by the PICC, the route is integral to achieving

those goals.

The delivery of this project, in whatever form, will have a positive impact on the economy.

During the construction phase, over 669 jobs (direct, indirect and induced) will be created.

Once completed, logistics costs will be reduced, road safety will be enhanced and accidents

will be reduced drastically. Consumer surplus of R 4.310 billion will be created, there will be

a R4.415 billion increase in GDP, household earnings will increase by R2.880 billion per

annum and additional tax revenue of R1.537 billion per annum will be realised.

Mthatha Airport: Upgrade of airport, landing aids, fencing and roads

On the terminal building and related projects around Mthatha Airport, project work started in

January 2014. To date,

Terminal Building: Structural building and curtain walls, terminal plastering, plumbing

and electrical works were completed.

Perimeter Fence: Post planting, Mesh and rail installation and concrete ground beam

were almost completed.

Perimeter Road: Concrete road panels are complete.

Car Parking: Layer works, structural brickwork and wash bay (foundation excavations,

paving and plastering and the roof have been installed.

N2 Wild Coast Highway

The Presidential Infrastructure Coordinating Committee (PICC) expressed full support for the

project and also indicated that a monetary contribution could be available from the fiscus.

Nevertheless, the Greenfields portion of the highway will be implemented as a toll road using

a hybrid funding model. Funding in the form of fiscal transfers will need to be secured for the

N2 Wildcoast Highway. The greenfields portion of the highway includes the following

sections:

Construction of a new highway Ndwalane (approx 14 km outside Port St. John’s) to

Ntafufu River, a distance of about 17 km including interchanges at Ndwalane and at

Ntafufu and a large new bridge across the Mzimvubu River.

Upgrading of the existing R61 between Ntafufu River and Lusikisiki, a distance of about

17 km. including a new interchange at Lusikisiki.

Construction of a new highway between Lusikisiki and the Mtamvuna River at the

existing R61 Mitchell bridge crossing of the Mtamvuna River, including two very large


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bridges across Msikaba and Mtentu gorges/rivers, and four large bridges to cross the

Mnyameni, Kulumbe, Mpahlane and Mzamba rivers/gorges.

The project scope and implementing parameters were presented to the PICC on a number

of occasions and Environmental Authorisation was obtained in 2010. The road, including

Msikaba and Mtentu Bridges, could be completed within 54 months.

Increase in the use of public transport

Public transport users of 2030 will require a transport system that is safe, secure, reliable,

flexible and easy to use. They would like to plan their journeys in the morning before they

leave home, taking into account information about delays, connections with other modes of

transport and alternatives available to them. They would require their journey to work to be

integrated with the places where they would want to shop and the places of education that

they sent their children to, be it day care or university. They would be sensitive and

cognisant of the impact that their travel decisions would have on the environment and would

require a public transport system that allows them to connect with the technology they are

using in their daily lives.

The Department aims to finalise the Public Transport Plan and its key feature will be how we

prioritise the investments into the right Public Transport areas. To date, public transport

network development, construction and operations are in progress in 13 cities. These

include Cape Town, Johannesburg, Tshwane, George, Rustenburg, Nelson Mandela Bay,

Ekurhuleni, eThekwini, Mangaung, Buffalo City, Msunduzi, Polokwane and Mbombela. Each

municipality will offer some different approaches to the development of the quality public

transport networks. Moving people more effectively and efficiently as they access social and

economic opportunities is the predominant reason for our investment in public transport.

The introduction of the first high-speed rapid rail link in South Africa, the Gautrain, has been

a success and has exceeded expectations in terms of the ridership, its contribution to the

Gauteng economy, transforming the way in which people live, get to places of work,

business, the airport and conducting their leisure activities.

Usage trends and uptake, between 1 April 2013 and 31 March 2014, an average of 42 456

passengers utilised the route between Pretoria and Johannesburg on business days. As a

result, the Gautrain effectively removed 24 200 would-be motorists from the Pretoria to

Johannesburg corridor every business day effectively reducing traffic congestion on this

stretch of highway by 7.5% during the week.

Given this success, the vision of the broader provision of integrated public transport

emerges, which entailed, at its core, a rapid rail link system that would multiply the current

benefits by connecting with the various other modes of transport in metropolitan areas. It

tells the story of how potential extensions to the current commuter rail networks could

connect more people, more businesses, and more parts of the country not currently being

serviced by public transport.


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Establishment and re-positioning of Public transport institutions

Cabinet, in 2014, approved the appointment of the Regulatory Committee of the National

Public Transport Regulator (NPTR). This Committee will be operationalized in the new

financial year to accredit tourist transport operators, regulate inter-provincial transport

services, oversee provincial and municipal regulatory entities, and also monitor public

transport countrywide.

As part of the land transport regulatory reforms, the previous Provincial Operating Licence

Boards (POLB) are being repositioned as Provincial Regulatory Entities (PRE’s) within the

Provincial Departments of Transport. This is done to enable better accountability and

efficient provision of services. To date, nine (8) Provincial Regulatory Entities have been

established. The PREs will regulate all road based intra-provincial public transport services.

The NPTR and PREs will also regulate and issue operating licences to enable the provision

of quality public transport services.

Regional Integration for African cooperation and development

The Department will work with the Presidency in implementing the work that continues under

the North-South Corridor, including the work on the Presidential Infrastructure Championing

Initiative (PICI) in integrating the SADC region and the Continent.

In the medium term, the DoT will develop the Regional Corridors Development Strategy for

South Africa that will guide the country in undertaking its regional corridors infrastructure

investment in the short, medium and long-term to improve regional trade following the

trajectory set by the National Development Plan.

National Transport Master Plan (NATMAP 2050)

As per Cabinet resolution of October 2013, the NATMAP alignment with the National

Development Plan is currently underway with the final NATMAP expected in the new

financial year. The NATMAP’s goal is to develop a multi-modal transportation-planning

framework, which is dynamic, long-term and sustainable in line with future transport

infrastructure supply facilities. Its proposed interventions, amongst others are:

High speed network expansion;

Laphalale-Mahalapye new rail line to link the Waterberg Coal Fields with the proposed

Trans-Kalahari corridor;

Moloto Rail Development Corridor as an intervention to deal with price, time and safety

measures, etc.

The plan seeks to respond to sector plans that rely on transport to be competitive in national

or international markets. In the mining sector, the plans seeks to enable movement from pit

to refinery for beneficiation and to port for export of processed and value-added products. In

helping agriculture, the plan seeks to move food/produce from the farmer’s gate to


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household plates in the country and the world over. Doing this means we have to have a

system that is integrated and cost-efficient such that farmers become part of the global

community.

Improving and preserving national, provincial and local road infrastructure

The Department continues to implement the S’hamba Sonke Programme, which entails

rehabilitation of roads, re-sealing of surfaced roads, patching of blacktops, and blading and

re-gravelling of gravel roads. S’hamba Sonke programme will seek to achieve the following:

60% of employment and empowerment in road infrastructure;

40 % of the S`hamba Sonke Programme (Provincial Road Maintenance Grant) to be

allocated to Operation Tselantle (pothole patching) programme;

This budgetary provision is intended to support 50% of the EPWP Infrastructure Job

Creation Targets.

The DoT has committed to create six million work opportunities during phase 3, of which the

bulk of the work will be for women, youth and people with disabilities. The Department of

Public Works, which is the driver for EPWP programme, will prioritise work opportunities in

the four different sectors, namely infrastructure, environment and culture, social, and the

non-state sector. Government will continue to assist those people who are committed in the

programme through labour-intensive programmes and would want to see these SMMES

improving within their areas.

As I conclude, we also want to reflect on the achievements made by the Department on the

recommendations of the Budgetary Review Recommendations Report (BRRR) of the

Portfolio Committee on Transport of the 22nd October 2014. I am happy to report that as per

the recommendations:

Adequate reviews were performed to ensure that our targets are in line with the SMART

principle and that our performance indicators are clear and have been defined for easy

understanding. We are currently improving our controls to ensure validity, usefulness

and reliability of all sector reports.

As per the current management and audits reports by the Auditor-General (AG),

tremendous progress has been made to address findings made by the AG in previous

years. Implementation of action plans to address critical audit findings is monitored on a

continuous basis.

Compliance to supply chain management controls and processes is monitored

continuously and the process of ensuring a full asset count and verifications has been

prioritised with the due date set for November 2015.

Advertisement and filling of vacant posts has been prioritised by the Department. Formal

recruitment processes are followed at all times.

Key steps are being taken internally to ensure that the entity oversight function is

improved. The Department is currently assessing its structural options and is

benchmarking with sister Departments for best practices.


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The DoT Strategic Plan 2015 – 2020 and Annual Performance Plan 2015/16 have been

assessed by the DPME, through the MPAT process, and found to be aligned with the

MTSF and NDP.

I wish to thank the Deputy Minister, the Director-General, the Portfolio Committee on

Transport, Select Committee of Business Development, and the dedicated staff of the

Department of Transport for the support and assistance they have provided to me over the

years. Our sincere gratitude is also extended to the Heads of Departments and staff at

Provincial Departments of Transport, Chairpersons of Boards, Chief Executive Officers and

staff at our State-Owned Entities for their cooperation and support. I am confident that this

support will continue over the term of the new administration. It has been my honour to work

with you to serve the people of South Africa.

__________________________

Hon. Minister Dipuo Peters

Minister of the Department of Transport

30 September 2015


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4. STATEMENT BY THE DEPUTY MINISTER OF TRANSPORT

As we present our Annual Report 2014/15, we take cognisance of the progress we have

made across different programmes of the Department. Notwithstanding all the achievements

made, we still need to do a lot to ensure that we provide access to a safe, secure, quality

and affordable transport system for passengers and freight users. Our country has made

significant strides in ensuring that quality and affordable transport is available to all South

Africans.

Given the more than three decades backlog of inadequate infrastructure maintenance and

expansion, a lot still needs to be done across the entire transport value chain. We have

endeavoured to develop strategic relations, both in the public and private sectors to ensure

that additional capacity is created for increased investment for all our infrastructure projects.

Operation Phakisa

In the Maritime Sector, we have moved in strides to intensify our input into Operation

Phakisa to ensure that the sector transforms and plays its optimal role within the Oceans

Economy. The Department, in the year under review, started the process of developing the

Green Paper on the Maritime Transport Policy, which aims to enhance the efficiency and

reliability of the Maritime Transport Sector. This is envisaged to be finalised in the 2015/16

financial year.

Moving road freight to rail (increase in container market share)

During the period under review, we have developed the draft Road Freight Strategy, to deal

with amongst others, the optimum split (what belongs to rail to be moved to rail and what

belongs to road remain) between road and rail cargo in order to lessen the burden on our

roads and increase the rail market share. This Strategy will ensure an increase of the rail

market share of 2% per annum (which is approximately 26 mtpa) over a period to 2019.

The Department has also initiated the amendment of the National Traffic Act Regulations to

effect the shift of rail-friendly cargo, particularly bulk non-time sensitive and dangerous

goods.

Strengthening road traffic management (reduction in accidents and fatalities)

Road fatalities remain a serious challenge facing the sector. In conjunction with the Road

Traffic Management Corporation (RTMC), the Department, during the period under review,

continued to strengthen initiatives to reduce road fatalities by half based on our 2010 figures,

as per the resolution (64/255) passed by the United Nation (UN) in 2010. Resolution 64/255

recognised road traffic injuries as a public health challenge threatening progress towards the

successful achievement of the Millenium Development Goals.

In line with the Decade of Action for Road Safety campaign, the country committed to

reducing the carnage by 50% from the 2010 baseline of 13 967 to 7 000 by 2020, with an

expected annual reduction of 700. The country has made an effort to focus on what has


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come to be known as the 4Es, namely Education, Engineering, Enforcement and Evaluation.

These continue to be implemented in line with the safe system approach. This approach

focuses on ensuring safe travelling practices and places emphasis on the importance of

human behaviour, vehicle fitness and road infrastructure for safer journeys resulting in “five

star drivers, in five star cars, on five start roads.” We further emphasised rigorous

enforcement of key priorities as identified in the Decade of Action Pilllars.

These pillars are:

Road Safety Management: The implementation of an integrated management of road

traffic information by establishing data management systems for the traffic fraternity to

strengthen reporting structures and ensure on-going monitoring and evaluation. The

focus has been to collaborate with key stakeholders such as Department of Health,

Statistics SA, Provinces and municipalities in developing functional and sustainable

traffic information management systems.

Furthermore, we are also intensifying Research and Development to ensure that road

safety solutions are informed by research capability in addressing challenges related to

road safety. A multi-pronged approach will be taken, underpinned by partnerships with

private sector, academia and research bodies.

Safe Roads and Mobility: We are also strengthening spatial development planning in

the Sector to ensure that construction of our roads addresses the tendency of road

separating communities and exposing communities to dangers when using roads.

Priority is being given to road assessment programmes in hazardous locations.

SANRAL, CSIR and RTMC remain integral in ensuring that a multi-disciplinary approach

is taken in dealing with road infrastructure to address road safety.

Safe Road User: Educating our people about dangers of the irresponsible road usage

and the need to be conscious road users has been identified as a key intervention.in this

regard, we also intend prioritising awareness campaigns that will ultimately change the

behaviour and culture of road users. Critical to this is to ensure the following:

o Road Safety forms part of the curriculum by working closely with the Department of

Education;

o Investing in Early Childhood Development programmes to ensure kids are educated

at an early stage, the partnership between the RTMC and the Department of Social

Development will go a long way in making that possible;

o Introducing learner license programme in schools across the country, to equip

students whilst in the senior schooling phase with sound driving knowledge and to

inculcate a culture of safe road usage. The Department of Education in Gauteng has

made it compulsory for all Grade 11 and 12 students to be enrolled in the programme

from January 2015;


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o Enhancing relations with Faith Based Organisations; and

o Collaborating with Department Sports and Recreation.

Furthermore, we have continued to strengthen our law enforcement efforts by increasing

capacity and visibility of our traffic police. Through the Road Traffic Management

Corporation (RTMC), we have planned to add more than 1000 traffic personnel on our

roads. These recruits will be the first intake to be trained on an improved traffic officer

curriculum aimed at developing a 21st century cadre who will hold the highest ethical and

professional conduct.

The Road Traffic Management Corporation (RTMC) continues to work closely with all

law enforcers across the country, namely SAPS, CBRTA, Home Affairs (Immigration),

SANDF to ensure an integrated approach in dealing with irresponsible behavior on our

roads.

Safe Speeds: Through regulation we are intensifying our efforts to deal with over

speeding on our roads and while at the same time determining the appropriate speed

limits given the conditions of the roads.

Safe Vehicles: We are strengthening our road worthiness mechanism to ensure the

safety of vehicles on our roads and compliance to vehicles safety standards.

Central to Road Safety is the alignment and integration of Road Safety and the Law

Enforcement mandate with the view of maximising the impact and coordination. The funding

model of the Road Traffic Management Corporation (RTMC) will be reviewed in order to

ensure promotion and execution of Road Safety initiatives.

Civil Aviation Safety and Security

In the year under review, the draft Amendment Bills for the ACSA Act and the ATNS Act

were gazetted for public comments. It is envisaged that the process will be finalised by

March 2017. In our concerted efforts to enhance civil aviation safety and security, we have

successfully investigated aircraft accidents and incidents and released quarterly reports with

safety recommendations.

The Aviation Industry Transformation Steering Committee was established in consultation

with the Aviation Industry stakeholders. A plan of action with priorities for the Aviation

Industry transformation was presented to the committee and culminated in a Ministerial

Roundtable on Aviation, which was convened in August 2014. The Department continues to

vigorously conduct awareness campaigns, career expos and exhibitions with the aim of

exposing our youth to Aviation-related career choices.

In conclusion, I wish to thank the Minister, Provincial Members of Executive Committees

(MECs) responsible for Transport, Chairpersons of Boards at our twelve Entities, local and


21

international stakeholders, the Director-General and his team in the Department of Transport

and the general public for their contribution in making it possible to implement our mandate.

________________________

Ms Sindisiwe Chikunga

Deputy Minister of the Department of Transport

30 September 2015


22

5. REPORT OF THE ACCOUNTING OFFICER

Report by the Accounting Officer to the Executive Authority and Parliament of the Republic

of South Africa.

5.1 Overview of the operations of the department

5.1.1 Results for the year

Major achievements for the year were as follows:

Marketing and Communication Strategy and the International Relations Strategy were

completed in the period under review. The two strategies are undergoing internal quality

assurance and approval processes.

134 vacant positions (against the targeted 80) were filled in the period under review to

improve departmental capacity and enhance performance. 57 interns (against the targeted

30) were appointed and placed across all branches, while nine were placed in municipalities.

The Draft Multi-Modal Transport Planning and Coordination Draft Bill was developed. The

Bill will assist in facilitating integrated Macro-Transport Systems Planning in view of guiding

investments in the sector.

Institutional Gap Analysis was conducted on the White Paper on the National Transport

Policy (1996). The analysis will assist in identifying key areas of the policy for review and

strengthening.

The draft Regional Corridor Strategy and the Reviewed National Freight Logistics Strategy

(NFLS) were developed. These strategies will seek to enhance integrated and seamless

movement of freight across all modes of transport.

The final draft study report on the impact of freight accidents on South African roads was

completed. The study was undertaken as a case study to showcase the need to move some

road freight to rail.

The fourth draft Single Transport Economic Regulator (STER) Bill was developed and

submitted to the Minister for approval to proceed to Cabinet. Once approved, STER will

address current fragmentation and inconsistent economic regulation in the sector.

The BBBEE Charter Council was approved by the Minister and launched during the period

under review. The Council will aim to improve sector transformation and economic

perfomance.

Rural accessibility / multi-deprivation index was completed. The index aims to showcase the

extent of transport access and mobility in rural space. The index aims to also show transport

infrastructure needs.


23

The final report on the energy consumption reduction study was completed in the period

under review. The study objective was to determine the energy consumption ratio of the

Transport Sector in view of the need to reduce consumption and enhance environmental

protection.

The draft White Paper on National Rail Transport Policy has been developed. The policy

aims to set rail sector institutional arrangement and drive investment and reform in the Rail

Industry.

The draft Branchline Strategy has been developed. The strategy will enhance sector

performance through reduction of direct transport costs and externality charges for the

economy, especially in rural areas.

Gap Analysis report on the National Rail Safety Strategy (NRSS) was completed. The report

highlights railway safety needs to inform the strategy. The overall goal is to improve rail

safety regulatory effectiveness.

As part of implementing the S’hamba Sonke Programme (National Support for Provincial

Road Maintenance), the DoT monitored maintenance and rehabilitation of roads in

provinces. Interventions included rehabilitation of surfaced roads (1 142 lane-km), re-sealing

of roads (2 258 lane-km), patching of blacktop (1 929 757 m2), blading (326 175) and re-

gravelling of gravel roads (4 068km).

The draft Road Infrastructure Policy was completed. The policy will aim to facilitate

investment for the implementation of the Road Infrastructure Strategic Framework of South

Africa (RISFSA) in line with the S’hamba Sonke and Road Infrastructure Asset Management

Programmes.

A needs analysis was conducted on the draft Road Safety Policy and the policy was

enhanced through comments and inputs resulting from stakeholder engagements with

Provinces, Sectors, Entities and Industry in the period under review.

DoT participated in the implementation of 365 Day Road Safety Programme in conjunction

with the Road Traffic Management Corporation (RTMC). The Programme consists of

integrated road safety projects aimed at enhancing road safety and decreasing accidents

and road fatalities.

55 456 FTEs were created and a total of 298 SMMEs were supported through the

implementation of the Provincial Road Maintenance Grant (PRMG).

Permission applications by the Airport Company South Africa (ACSA) and Air Traffic

Navigation Services (ATNS) for 2015/16 – 2019/20 were concluded and gazetted. The draft

Amendment Bills for the ACSA Act and the ATNS Act were completed and submitted to the

Minister for approval to proceed to Cabinet.


24

The National Civil Aviation Policy and National Airports Development Plan were submitted to

the Minister for Cabinet consideration. These were developed to enhance maintenance and

strategic expansion of the Civil Aviation infrastructure network for improved efficiency and

competitiveness.

Bilateral air services agreements were conducted with the Republic of Gabon, the Republic

of South Sudan, the Republic of Philippines, Namibia and Mozambique.

Awareness campaigns, career expos and exhibitions were held where 435 schools

throughout the nine provinces were exposed to aviation-related career choices.

The draft State Action Plan on Carbon Dioxide Emission Reduction developed. The

implementation of the plan will contribute to minimisation of adverse effects of aviation on

the environment.

Torremolinos Convention was submitted to the ICTS Cluster. The Convention aims to

reduce the number of accidents and incidents in the sea environment.

African Maritime Charter was submitted to the ICTS Cluster. This Charter aims to support

job opportunities within the Maritime Sector.

The MARPOL IV & VI Convention was approved by Parliament. The Convention aims to

reduce the level of pollution at sea.

The National Learner Transport Policy was amended with inputs and comments received

from stakeholder following the publication of the policy in the third quarter. The Policy was

subsequently re-submitted to Cabinet. The policy will aim to provide a policy framework to

address the challenges learners encounter on a daily basis and overall management of

learner transport.

As part of implementation of the Shova Kalula Programme, 3000 bicycles were distributed to

provinces. The programme aims to improve access and mobility, especially in rural areas.

The draft Public Transport Stakeholder Relations Framework was developed to address

conflict and improve dialogue in the public transport sector. 4 049 Old Taxi Vehicles (OTVs)

were scrapped in line with the Taxi Recapitalisation Programme (TRP). The programme

aims to eliminate old and unroadworthy taxi vehicles from the roads of South Africa and

introduce environment-friendly taxi vehicles.

Construction and operations of Integrated Public Transport Networks are in progress in 11

metropolitan municipalitiesa across provinces. The networks will improve public transport

access and reliability.

5.1.2 Challenges experienced in the year

Publishing of the Merchant Shipping Amendment Bill for commencement and compliance

was delayed. The Bill will be published after presentation to Parliament.


25

Presentation of the Adjudication of the Road Traffic Offences Amendment Bill 2014 at the

DG Cluster and Cabinet was delayed due to prolonged consultations with stakeholders.

Consultation between the DoT and PICC on the NATMAP 2050 could not be achieved as

targeted. Consultations will be prioritised in the next financial year and the NATMAP will

subsequently be re-submitted to Cabinet for approval.

The Funding Strategy for the Durban-Free State-Gauteng Logistics and Industrial Corridor

projects was completed in the period under review. The strategy will only be presented at the

Steering Committee in the 2015/16 financial year.

The Tier 2 Greenhouse Gas (GHG) inventory report was completed as targeted. However,

finalisation of the report will succeed development of the maritime transport database in the

2015/16 financial year.

The Aviation Industry Transformation Letsema (AITL) 2014 was not hosted as planned due

to resource limitations.

Submission of the Regulations on the phasing out of the Chapter 2 Aircraft to the Minister

was delayed due to prolonged stakeholder consultations.

Development of the Green Paper on the Maritime Transport Policy was delayed due to

prolonged stakeholder consultations.

Publication of the Amended Maritime Security Regulations was delayed due to prolonged

stakeholder consultations.

Development of the first draft of the Salvage Strategy was delayed due to prolonged internal

processes.

Development of the draft Reviewed Rural Transport Strategy was delayed due to prolonged

stakeholder consultations.

The development of the IPTN plan for the Sekhukhune District Municipality was withdrawn

due to a request by the District Municipality for an assurance from National Treasury to fund

the implementation of the project beyond the planning phase.

A lower number of Old Taxi Vehicles was scrapped due to low uptake by industry.

5.1.3 Significant events and projects for the year

The International Civil Aviation Day (ICAD) 2014 was hosted at the Kimberley Airport,

Northern Cape, on the 5th to 7th December 2014.

Awareness campaigns, career expos and exhibitions were held where 435 schools

throughout the nine provinces were exposed to aviation-related career choices.


26

The 365 Day Road Safety Programme festive season campaign was launched on the 28th

November 2014.


27

5.2. Overview of the financial results of the department

5.2.1 Departmental Receipts

Departmental

receipts

2014/2015 2013/2014 Estimate Actual Over/(Under) Estimate Actual Over/(Under)

Amount Collection Amount Collection

Collected Collected

R’000 R’000 R’000 R’000 R’000 R’000

Tax Receipts

- Motor vehicle

licenses

260,000 - (260,000) 245,000 - (245,000)

Sale of goods and

services other than

capital assets

546 611 65 511 449 (62)

Fines, penalties and

forfeits

70 - (70) 60 - (60)

Interest, dividends

and rent on land

150 230,734 230,584 150 74,007 73,857

Financial

transactions in

assets and liabilities

8,000 90,762 82,762 7,500 672,511 665,011

Total 268,766 322,107 53,341 253,221 746,967 493,746

The department does not charge tariffs for goods sold and/or services rendered and does

not render free services.

For motor vehicle licenses, anticipated receipts were not recovered in 2013/14 and in

2014/15 because the transaction fees levied on the renewal of motor vehicle licenses belong

to the Road Traffic Management Corporation and was not paid over to the department as

expected.

In 2013/14 and in 2014/15 more dividends were received from the Airports Company South

Africa Ltd. than expected.

Included in financial transactions in assets and liabilities is revenue from unspent conditional

grants amounting to R89.6 million that was surrendered to the department and surrendered

to the Revenue Fund.


28

5.2.2 Programme expenditure

Programme 2014/15 2013/14

Final

Appropria-

tion

Actual

expendi-

ture

(Over) /

Under

expenditure

Final

Appropria-

tion

Actual

expendi-

ture

(Over) /

Under

expenditure

R'000 R'000 R'000 R'000 R'000 R'000

Administration 390,889 377,489 13,400 333,440 315,578 17,862

Integrated

Transport

Planning

74,974 74,974 - 74,913 66,373 8,540

Rail Transport 15,035,507 15,035,507 - 11,232,843 11,232,840 3

Road

Transport

21,810,020 22,202,862 (392,842) 19,897,209 20,665,564 (768,335)

Civil Aviation 160,966 160,966 - 245,515 148,602 96,913

Maritime

Transport

101,742 99,623 2,119 103,557 102,271 1,286

Public

Transport

11,196,571 11,195,677 894 10,514,190 10,505,616 8,574

Total 48,770,669 49,147,098 (376,429) 42,401,667 43,036,844 (635,177)

Administration spent R377.4 million against a budget of R390.9 million, an under

expenditure of R13.4 million. The programme under spent R9.3 million on goods and

services, mainly because the use of consultants were reduced to address audit and legal

issues, to improve the Programme Management Unit, to develop a performance

management system and to continue the restructuring of the Road Accident Fund. R3.3

million was not transferred to higher education institutions because a university discontinued

its administration of these funds, which was requested as a rollover. R0.8 million was under

spent on compensation of employees.

Road Transport over spent its budget by R392.8 million as follows: R313.2 million was over

spent because the cost of maintenance and operations of the Electronic National Traffic

Information System (eNaTIS) could not be recovered from transaction fees that belong to the

Road Traffic Management Corporation (RTMC). R83.4 million was over spent on transfers

that were not paid to the RTMC in 2013/14, which was paid in 2014/15. The programme also

under spent a transfer payment to the Road Traffic Infringements Agency (RTIA) of R3.8

million, which was claimed late. This amount was requested as a rollover.

The department plans to transfer the maintenance and operations of the eNaTIS to the

RTMC as soon as it is able to do so to prevent the over expenditure in future.

Maritime Transport under spent its goods and services by R1.3 million because a number of

projects were not undertaken in the year. R0.8 million was under spent on foreign

membership fees that was not claimed during the year.


29

Public Transport under spent its budget by R0.9 million because the recipient under claimed

a transfer payment.

5.2.3 Virements

Summary of virements:

Programme

Compensa-

tion of

employees

Goods

and

services

House-

holds Total

Administration (17,000) (16,990) (33,990)

Integrated Transport Planning (2,782) (3,428) (6,210)

Rail Transport 950 950

Road Transport 164,733 164,733

Civil Aviation 10,564 10,564

Maritime Transport (2,321) (6,526) (8,847)

Public Transport (166) (3,589) (123,445) (127,200)

Total (22,269) 145,714 (123,445) 0

The Road Traffic Management Corporation (RTMC) collects transaction fees that are levied

on the renewal of motor vehicle licenses, and, up to April 2012, paid the transaction fees

over to the department to fund the cost of maintaining and operating the Electronic National

Traffic Information System (eNaTIS). During the previous financial year the department and

the RTMC concluded that the transaction fees belong to the RTMC. The expenditure on the

eNaTIS that is incurred by the department is therefore not budgeted for and resulted in

unauthorized expenditure in the current and previous financial years.

To reduce the resulting unauthorized expenditure, funds were shifted across programmes to

augment the budget of the programme: Road Transport as much as possible. The details of

major virements are provided below:

Compensation of employees was under spent by R22.3 million across the department

because not all posts could be filled in the year. The under expenditure was shifted across

programmes to goods and services of the programme: Road Transport.

Administration under spent its budget for goods and services mainly because the use of

consultants were reduced to address audit and legal issues, to improve the Programme

Management Unit, to develop a performance management system and to continue the

restructuring of the Road Accident Fund. Funds were also under spent on transaction

advisors for fleet and accommodation services, and on information technology. A total of

R16.99 million could be shifted to other programmes.

Integrated Transport Planning under spent on goods and services mainly because of under

expenditure on the National Transport Planning Databank, and R3.4 million could be shifted

to the programme: Road Transport.


30

Rail Transport over spent its budget by R0.9 million because of excess expenditure on the

Moloto Development Corridor. Funds were shifted across programmes to cover the shortfall.

Road Transport over spent its budget by R 557.6 million as a result of the unfunded

expenditure on eNaTIS. A total of R164.7 million could be shifted to the programme to

reduce the unauthorized expenditure that was incurred.

Civil Aviation over spent its budget by R10.6 million because the cost of repatriating bodies

of South Africans who died in a building that collapsed in Nigeria was not funded. Funds

were shifted across programmes to cover the shortfall.

Maritime Transport under spent its budget for goods and services by R7.8 million because a

number of projects were not undertaken, mainly a feasibility study on tug boat services,

policy and legislation development, a business model for regional shipping and the

implementation of a Maritime BEE Charter. Expected expenditure on two Marine Courts of

Inquiry did not materialize. As a result, an amount of R6.5 million could be shifted to the

programme: Road Transport.

Public Transport under spent R123.4 million because less taxis were scrapped in the year

than budgeted for, which was shifted to the programme: Road Transport. The programme

also under spent R3.6 million on a range of projects, which enabled the programme to shift

that amount to the programme: Road Transport from goods and services.

5.2.4 Rollovers requested

Rollovers were requested as detailed in the table below:

Programme R'000

Programme 1: Administration:

Transfers to Higher Education Institutions 3,281

Programme 4: Road Transport:

Transfer to Road Traffic Infringements Agency 3,825

Programme 5: Civil Aviation:

Review of the National Airports Development Plan 665

Total 7,771


31

5.3. Unauthorised and fruitless and wasteful expenditure

Unauthorised expenditure:

During the previous year the department and the RTMC concluded that the transaction fees

that were utilized to fund the cost of eNaTIS maintenance and operations belong to the

RTMC. The cost of eNaTIS maintenance and operations resulted in further unauthorized

expenditure of R392.8 million during the year. Transfer payments to the RTMC that were

held back in the previous financial year to reduce the unauthorized expenditure were paid in

the current financial year, increasing the unauthorized expenditure in the current year. The

unauthorized expenditure on eNaTIS, including previous financial years, amounted to a total

of R1,161,197,000 at the end of the financial year.

A further R1.2 billion of unauthorized expenditure that was incurred during 2008/09 and

2009/10 as a result of over expenditure on bus subsidies remain unresolved (refer to note 8

to the annual financial statements). The decision of Parliament regarding the over

expenditure on bus subsidies must still be implemented by the National Treasury to allocate

funds to the department against which to write off this unauthorized expenditure via a

Finance Act.

Fruitless and wasteful expenditure:

Included in receivables (note 11 to the annual financial statements) is R470,000 relating to a

fraudulent swop of the procurement of print cartridges, which was reported to the South

African Police Services.

Fruitless and wasteful expenditure that was declared and not yet transferred to receivables,

amounting to a total of R1.365 million as detailed in note 27 to the annual financial

statements, include R547,000 for services paid for but not delivered and an overseas trip

that was undertaken that exceeded the authorization by R640,000, both of which are under

investigation. Other fruitless and wasteful expenditure under investigation amounts to

R88,400, to be written off R86,700 and to be recovered R3,000.

Irregular Expenditure

A total of R102.3 million was declared as irregular expenditure, of which R98.5 million

related to prior years because a contract was extended from 1 May 2010 for a period of five

years without following procurement procedures. The matter is still being investigated. A

further R3.8 million was declared as irregular expenditure in five cases: Services were

procured without obtaining competitive quotations, an employment contract did not exist for

an extension, Public Service Regulations were not complied with, and the supplier’s

database was not used in two cases. Disciplinary steps were taken in one of the new five

cases. Four of the cases were identified during the audit.


32

5.4. Future plans of the department

The strategic outcomes over the medium term are:

Strategic Outcome-oriented Goal 1: Efficient and integrated infrastructure network

and operations that serve as a catalyst for social and economic development

Develop and implement policies and promulgate Acts that are set to drive investments for

the maintenance and strategic expansion of the transport infrastructure network, and support

the development of transport asset management systems in rural and provincial authorities.

The definitive drive of these interventions is to improve the efficiency, capacity and

competitiveness of transport operations in all modes.

Strategic Outcome-oriented Goal 2: A transport sector that is safe and secure

Develop and implement policies and strategies that seek to reduce accidents and incidents

in the road, rail, aviation and maritime environment.

Strategic Outcome-oriented Goal 3: Improved rural access, infrastructure and mobility

Increase mobility and access in rural space by improving transport infrastructure and

implementing integrated transport services.

Strategic Outcome-oriented Goal 4: Improved public transport services

Provide integrated public transport solutions through development and implementation of

legislation, policies, strategies and regulations. The definitive drive of these solutions is to

ensure safe, secure, reliable, cost-effective and sustainable public transport services.

Strategic Outcome-oriented Goal 5: Increased contribution to job creation

Create an enabling environment for employment opportunities in the transport sector through

the implementation of labour-intensive interventions and off-takes of ancillary support

programmes.

Strategic Outcome-oriented Goal 6: Increase contribution of transport to

environmental protection

Develop and implement policies that aim to mitigate climate change and adaptation

responses through reduction of greenhouse gas (GHG) emission, aviation noise and

pollution at sea.

Strategic Outcome-oriented Goal 7: Effective and efficient management and support

Improve departmental performance by strengthening internal support functions and ensuring

good governance controls.


33

5.5. Public Private Partnerships

A Transport Fleet Services Public Private Partnership was entered into during November

2006 to render vehicle fleet services to six Government departments. Services that are

provided for in the contract include long-term vehicle rentals, short-term day-to-day vehicle

rentals, short medium term vehicle rentals, a 24-hour Call Centre, chauffeur and point-to-

point driven services, an internet based fleet management system with an electronic log

book, and a fuel management system.

5.6. Supply chain management

No unsolicited bid proposals were concluded for the year under review.

Supply Chain Management processes and systems are in place to prevent irregular

expenditure.

Measures that were put in place detected the incidents of irregular expenditure, and

are aimed at preventing irregular expenditure.

Measures that were put in place to prevent and / or detect irregular expenditure are as

follows:

Where appropriate, cases of irregular expenditure are referred to the department’s

legal services to determine whether any official can be held liable for the irregular

expenditure.

Cases of irregular expenditure are referred to the department’s Directorate:

Investigations and Forensics for investigation when an investigation is required.

Relevant managers are requested to take disciplinary steps against officials who

makes or permits irregular expenditure.

The Bid Adjudication Committee will not consider condoning irregular expenditure until

a legal opinion has been obtained where applicable and disciplinary steps were

considered.

The contract management system monitors all payments against orders that are

placed, and will detect payments that exceed the contract value.

The contract management system will detect any payments that are approved for

processing for which no order was placed.

Payments for all procurements must be processed via Supply Chain Management so

that any irregular procurement can be detected before payment.

To prevent the occurrence of not completing the internal order and requisition forms,

the Supply Chain Management component does not make any approval documents or

letters of acceptance available until the internal order and requisition forms are

completed.

Initiatives to train all officials who are involved in the approval of procurement matters

will continue.


34

5.7 Sponsorships / Gifts and Donations received in kind from non related parties

The following in kind goods and services were received from parties other than

related parties during the year:

Name of organisation Nature of Gift. Donation or Sponsorship R'000

U.S. Trade and

Development Agency

Five-day training program including a three-day

course at Embry-Riddle Aeronautical University

and additional programs at Orlando

International, the Orlando International FAA Air

Traffic Control tower and Orlando Sanford

International Airport. Included meals and

accommodation for two employees.

88

African Union Commission Sponsored an employee's air ticket,

accommodation and allowance for a Meeting of

Experts to Review the Regulatory Framework

for the Implementation of the Yamoussoukro

Decision in Addis Ababa, Ethiopia.

27

Ford South Africa Inauguration: Tourneo Mini Busses 73

Audi South Africa Inauguration: A8 Security Vehicle + 5 Luxury

Vehicles

137

Mahindra South Africa Inauguration: 5x SUV / MPV seven seater 50

Hyundai South Africa Inauguration: Various vehicles (Mini bus and

support)

27

Nissan South Africa Inauguration: 10 x Nissan Infinity Luxury

Vehicles + 3 Mini Buses

99

BMW South Africa Inauguration: 150 Vehicles (3,5 and 7 Series) 2,630

Phakisa Christmas gifts chocolates, note pads 1

Deutsche Gesellshaft Fuer

Internationale

Zusammenarbeit (GiZ)

Sponsored accommodation for two officials to

attend training on Quantifying Urban Transport

Greenhouse Gas Emissions

9

Smit Amandla Gala Dinner at World Maritime Day celebration 35

International Labour

Organisation

Sponsored air travel and subsistence for an

official to attend a meeting of experts on

Maritime Occupational Safety and Health:

52

Deutsche Gesellshaft Fuer

Internationale

Zusammenarbeit (GiZ)

Sponsored traveling and accommodation for an

official to attend a transport exchange mission

to build capacity in chemicals management and

climate change:

39

International Maritime Safety

and Environment Academy

Sponsored tuition fees and accommodation for

two officials to attend a course on the ISPS

Code Implementation

56

International Centre for

Alcohol Policies

Sponsored traveling costs for an official to

attend an Africa Union Road Safety Status

meeting

11


35

Name of organisation Nature of Gift. Donation or Sponsorship R'000

Audi South Africa Test driving of Audi vehicles at the Annual

Transport Awards

5

Air Mercy Services (AMS) Sponsored a Hangar for Career Exhibitions

during the celebration of the International Civil

Aviation Day at Kimberly Airport

70

SA-USA Aviation Trade

Forum

Sponsored accommodation for 13 officials to

attend the Forum

52

TOTAL 3,339

5.8. Exemptions and deviations received from the National Treasury

None.

5.9. Events after the reporting date

On 23 June 2015, a ruling by the Gauteng North High Court was made regarding a major

contract with a service provider. The court ruled in favour of the department to set aside an

extension of the contract for a period of five years, which was declared void from the date of

the extension. The court also ruled that the department can request a transfer of the system

and related services within five days from the date of the order and that the process should

be completed within 30 days. The service provider appealed against the decision and the

outcome of the appeal is awaited.

5.10 Other

Any other material fact or circumstances, which may have an effect on the understanding of

the financial state of affairs, not addressed elsewhere in this report.

During the year, the department physically counted all assets and compared the physical

count to the asset registers. A total of 965 major assets with a cost price of R12,708,911.43

and a book value of R3,150,957.30 and a total of 4,939 minor assets with a cost price of

R5,379,050.13 and a book value of R786,762.62 could either not be directly matched or

verified against the asset register. These minor assets include 897 items that can be

deemed to be consumables with a book value of R323,273.18. A total of 979 assets with a

fair market value of R3,412,542.34 were physically counted but could not be directly

matched to the asset registers. These assets are seen as “gains” and the department is in

the process of matching these assets to assets that could not be verified or directly matched.

If all the “gains” could be matched at their fair market values, the net book value of assets

that could not be verified would amount to R525,177.58

The department is investigating all the assets that could not be verified or directly matched.

Assets under investigation was declared in notes 33 and 33.4 in the financial statements.


36

5.11 Conclusion

I would like to express my sincere gratitude to the Minister of Transport, Ms Dipuo Peters,

and the Deputy Minister, Ms Sindisiwe Chikunga, for their political leadership and guidance. I

also extend my appreciation to the Chairperson and members of the Parliamentary

Committee on Transport for their expertise and oversight. Finally, I wish to thank Public

Entities, Sector partners, the DoT management team and staff members for their hard work

and dedication in ensuring that the Transport Sector delivers on its mandate.

5.12. Approval

The Annual Financial Statements set out on pages 185 to 348 have been approved by the

Accounting Officer.

Date: 30 July 2015


37

STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as

issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash

standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for

the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control

that has been designed to provide reasonable assurance as to the integrity and reliability of the

performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial

statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human

resources information and the financial affairs of the department for the financial year ended 31 March

2015.

Yours faithfully

Date: 16 September 2015


38

STRATEGIC OVERVIEW

7.1. Vision

“Transport, the Heartbeat of Economic Growth and Social Development!”

7.2. Mission

Lead the development of efficient integrated transport systems by creating a framework of sustainable

policies and regulators and implementable models to support government strategies for economic,

social and international development.

7.3. Values

The core values of the Department are:

Maintain fairness and equity in all our operations;

Strive for quality and affordable transport for all;

Stimulate innovation in the transport sector;

Ensure transparency, accountability and monitoring of all operations; and

Ensure sustainability, financial affordability, accessibility as well as the upholding of the Batho

Pele pronciples.

6. LEGISLATIVE AND OTHER MANDATES

Legislation administered by the National Department of Transport

Railways and Harbours

South African Transport Services Conditions and Service Act,1988 (Act 41 of 1998)

Legal Succession to the South African Transport Services Act, 1989 (Act 9 of 1989)

National Railway Safety Regulator Act, 2002 (Act 16 of 2002)

National Ports Act, 2005 (Act 12 of 2005)

Roads

Advertising on Roads and Ribbon Development Act, 1940 (Act 21 of 1940)

National Roads Act,1972 (Act 54 of 1971)

National Road Safety Act,1972 (Act 9 of 1972)

South African Roads Board Act, 1988 (Act 74 of 1988)

Transport Deregulation Act, 1988 (Act 80 of 1988)

South African National Roads Agency Limited and National Roads,1998 (Act 07 of 1998)

Motor Vehicles

Road Transportation Act, 1977 (Act 74 of 1977)

Urban Transport Act, 1977 (Act 78 of 1977)

Road Traffic Act, 1989 (Act 29 of 1989)


39

Financial Supervision of the Road Accident Fund Act, 1993 (Act 8 of 1993)

Road Accident Fund Act, 1996 (Act 56 of 1996)

National Road Traffic Act, 1996 (Act 93 of 1996)

Cross Border Road Transport Act, 1998 (Act 4 of 1998)

Transport Appeal Tribunal Act, 1998 (Act 39 of 1998)

National Land Transport Interim Arrangements Act, 1998 (Act 45 of 1998)

Administrative Adjudication of Road Traffic Offences Act, 1998 (Act 46 of 1998)

Road Traffic Laws Rationalisation Act, 1998 (Act 47 of 1998)

Road Accident Fund Commission Act, 1998 (Act 71 of 1998)

Road Traffic Management Corporation Act, 1999 (Act 20 of 1999)

National Land Transport Transition Act, 2000 (Act 22 of 2000)

National Land Transport Act, 2009 (Act 05 of 2009)

Civil Aviation

Airports Company Act, 1993 (Act 44 of 1993)

Air Services Licensing Act, 1990 (Act 115 of 1990)

Air Traffic and Navigation Services Company Act, 1993(Act 45 of 1993)

Carriage by Air Act, 1946 (Act 47 of 1946)

Civil Aviation Act, 2009 (Act 13 of 2009)

Convention on the International Recognition of Rights in Aircraft Act, 1993 (Act 53 of 1993)

Convention on International Interests in Mobile Equipment Act, 2007 (Act 4 of 2007)

International Air Services Act, 1993 (Act 60 of 1993)

South African Civil Aviation Authority Levies Act,1998 (Act 41 of 1998)

South African Maritime and Aeronautical Search and Rescue Act, 2002 (Act 44 of 2002)

Convention on International Interests in Mobile Equipment Act, 2007 (Act 4 of 2007)

Shipping

Merchant Shipping Act,1951 (Act 57 of 1951)

Marine Traffic Act, 1981 (Act 2 of 1981)

Carriage of Goods by Sea Act,1986(Act 1 of 1986)

Marine Pollution (Prevention of Pollution from Ships), 1986 (Act 2 of 1986)

Shipping and Civil Aviation Laws Rationalisation Act, 1994 (Act 28 of 1994)

Wreck and Salvage Act, 1996 (Act 94 of 1996)

South African Maritime Safety Act, 1998 (Act 5 of 1998)

South African Maritime Safety Authority Levies Act, 1998 (Act 6 of 1998)

Ship Registration Act, 1998 (Act 58 of 1998)

Sea Transport Documents Act, 2000 (Act 65 of 2000)


40

7. ORGANISATIONAL STRUCTURE

Minister of Transport

Rail Regulation

Rail Operations

Communication and Stakeholder

Management

Legal Services

Rail Infrastructure & Industry Development

International Relations

Research & Innovation

Maritime Policy Development

Maritime Implementation,

Monitoring & Evaluation

Maritime Transport

Aviation Policy & Regulation

Aviation Economics & Industry

Development

Civil Aviation

Road Regulation

Road Infrastructure & Industry

Development

Driving Licence Credit Card Trading Entity

Integrated Transport Planning

Macro Sector PlanningHuman Resource Management & Development

Transport Information Systems

Maritime Infrastructure & Industry Development

Deputy Minister of Transport

Internal Audit & Fraud nvestigations

Corporate Management

Aviation Safety, Security Environment

& Search Rescue

Organisational Structure for the Department of Transport

Business Information Systems

Office of the Director-General

Public Transport Regulation

Rural and Scholar Transport

Implementation

Public Transport

Public Transport Infrastructure &

Industry Development

Modelling & Economic Analysis

Programme 2:


Programme 3:

Rail Transport

Programme 4:

Road Transport

Programme 1:

Administration

Programme 5:

Civil Aviation

Programme 6:

Maritime Transport

Programme 7:Public Transport

Architecture & Governance

Office of the Chief Financial Officer

Budgeting &

Compliance

Financial Accounting & Supply Chain Management

Strategic Planning, & Cluster Coordination

Freight Logistic

Road EngineeringStandards

PT Network Development

Transport Ministry

Programme : 1

Transport Information Systems

Regional Integration

Chief Operations

OfficerRail Transport Road Transport

Director General

Transport

Project Management Unit


41

8. ENTITIES REPORTING TO THE MINISTER

The table below indicates the entities that report to the Minister of Transport.

Name of Entity Legislative Mandate Financial

Relationship

Nature of Operations

Passenger Rail Agency

of South Africa

(PRASA)

Legal Succession to

the South African

Transport (“SATS”)

Act, 1989 (Act No. 9 of

1989)

Transfer payments To ensure that rail

commuter services are

provided in the public

interest and to provide

for long-haul

passenger rail and bus

services within, to and

from the Republic in

terms of the principles

set out in section 4 of

the National Land

Transport Act, 2000

(Act No. 22 of 2000)

Rail Safety Regulator

(RSR)

National Railway

Safety Regulator Act,

2002 (Act No. 16 of

2002)

Transfer payments To oversee and

promote safe railway

operations through

appropriate support,

monitoring and

enforcement, guided by

enabling regulatory

framework and

regulations

Road Traffic

Management (RTMC)

Road Traffic

Management

Corporation Act, 1999

(Act No. 20 of 1999)

Transfer payments To enhance the overall

quality of road traffic

services provision, and

in particular ensure

safety, security, order,

discipline and mobility

on the raods

Road Traffic

Infringement Agency

(RTIA)

Administrative

Adjudication of Road

Traffic Offences

(AARTO) Act, 1998

(Act No. 46 of 1998.

Transfer payments To promote road traffic

quality by providing for

a scheme to

discourage road traffic

contraventions;

facilitate adjudication of

road infringements;

and support the

prosecution of the road

traffic offences in terms

of national and

provincial laws relating

to road traffic


42


Relationship


Road Accident Fund

(RAF)

Road Accdent Fund

Act, 1996 (Act No. 56

of 1996)

No transfer from the

Department of

Transport

To provide for the

payment of

compensation for loss

or damages wrongfully

caused by negligent

driving of motor

vehicles within the

borders of the Republic

South African National

Roads Agency Limited

(SANRAL)

South African national

Roads Agency Limited

and National Road Act,

1998 (Act No. 7 of

1998)

Transfer payments To manage and control

the Republic’s national

roads system and take

charge amongst others

of the development,

maintenance and

rehabilitation of

national roads within

the framework of

government policy

Cross-Border Road

Transport Agency (C-

BRTA)

Cross-Border Road

Transport Agency Act,

1998 (Act No. 4 of

1998)


Department of

Transport

To provide for

cooperative and

coordinated provision

of advice, regulation,

facilitation and law

enforcement in respect

of cross-border road

transport by the public

and private sectors.

South Africa Civil

Aviation Authority

(SACAA)

South African Civil

Aviation Authority Act,

1998 (Act No. 40 of

1998)

Transfer payments To control and regulate

civil aviation safety and

security within the

Republic

Air Traffic and

Navigation Services

(ATNS)

Air Traffic and

Navigation Air Services

Company Act, 1993

(Act No. 45 of 1993)


Department of

Transport

To provide for the

establishment,

development,

provision, maintenance

mnagement and

operation of air

navigation

infrastructure, air

navigation services

Airports Company

South Africa SOC

Limited (ACSA)

Airports Company Act,

1993 (Act No.


Department of

Transport

To own and operate

the republic’s nine

principal airports,

providing airlines with


43


Relationship


world-class safe and

secure airports

infrastructure

South African Maritime

Safety Authority

(SAMSA)

South African Maritime

Safety Authority Act,

1998 (Act No. 5 of

1998)

Transfer payments To ensure safety of life

and property at sea;

prevent and combat

pollution of the marine

environment by ships;

and promote South

Africa’s maritime

interest

Ports Regulator (PR) of

South Africa

National Ports Act,

2005

Transfer Payments To regulate activities of

the ports industry in

acordance with the

policy and mandate of

the state


44

PART B: PERFORMANCE

INFORMATION


45

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs certain audit procedures on the performance information to provide

reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance

against predetermined objectives is included in the report to management, with material findings

being reported under the Predetermined Objectives heading in the Report on other legal and

regulatory requirements section of the auditor’s report.

Refer to page 179 of the Report of the Auditor General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

One of the key constraints identified by the sector, in the period under review, was low level of

investment to maintenance and the need for strategic expansion on transport infrastructure network.

In this regard, the department has started engaging the private sector to remove obstacles to

investment. Plans are apace to develop a Private Sector Participation (PSP) framework that will

inform how the sector enhances private sector investment for the medium and long term.

The key feature of the Public Transport Network Development is that construction has continued

apace in Cape Town, Johannesburg, Tshwane, George, Rustenburg and the Nelson Mandela Bay.

Four more municipalities, namely Ekurhuleni, eThekwini, Polokwane and Mbombela, have

commenced network construction. Each municipality will offer a different approach to the

development of quality of public transport networks. The predominent reason for this investment in

public transport networks is to move people more efficeintly and effectively as they access economic

opportunities.

The National Learner Transport Policy was finalised and submitted to Cabinet for approval in the

financial year. The implementation of this policy will be critical in enhancing a safe transportation

environment by ensuring that learner transport operators comply with the Road Traffic Act (Act No. 93

of 1996), as well as the provisions of the National Land Transport Act (Act No. 33 of 2009). Through

the Shova Kalula Programme, which is aimed at improving transport access and mobility for learners

in rural areas, 3 000 bicycles were distributed in rural district municipalities.

In its quest to improve and preserve South Africa’s road network, the department continued to

implement the S’hamba Sonke Programme, which entails road maintenance and rehabilitation. In the

period under review, 1142 lane-km of surfaced roads were rehabilitated, 2 258.58 lane-km of surfaced

roads were resealed, 4 068 km of gravel roads were re-gravelled, 1 929 757m2 of blacktops were

patched (including pothole repairs) and 326 175.2 km of gravel roads were bladed. In addition,

170 065 Work Opportunities and 55 456 Full Time Equivelent (FTE) jobs were created.

The department through the Road Traffic Management Corporation coordinated the implementation of

the 365 road safety programme, which seeks to reduce road fatalities. As part of the programme,

various law enforcement and road safety operations were conducted. Some of these operations

include speed operations, drunken driving operations, vehicles stop and checks and weighing of

heavy vehicles. Central to road safety, was the need to align and integrate road safety interventions

with the law enforcement mandate in order to maximise impact and coordination. This effort will be

enhanced to ensure achievement of the United Nation Decade of Action resolutions.


46

The introduction of the first high speed rapid rail link in South Africa, the Gautrain, has been a

success and has exceeded expectations in terms of commutership and its contribution to the Gauteng

economy. This mode of transport has also succeeded in removing would be motorists, thus effectively

reducing traffic congestions between Pretoria and Johannesburg.

As part of the Rail Rolling Stock Acquisition Programme, a number of obsolete train coaches have

been brought back to service. A manufacturing factory will be established in Nigel to spearhead the

manufacturing of rolling stock locally. R123 billion has been budgeted over 20 years and the

programme is envisaged to create about 33 000 direct and indirect jobs in the next 10 years. The first

batch of test trains was delivered in January 2015.

The programme to modernise, upgrade and brand about 134 stations in preparation for the new

rolling stock, which includes signalling and telecommunication systems, stations, perway, speed

gates, asset protection as well as train control nerve centres, is under way. The successful

implementation of this programme will enhance sector performance and further improve rail transport

efficiency.

In the period under review, the DoT has reveiwed the National Freight Logistics Strategy to deal with,

amongst others, the optimum split between road and rail cargo in order to lessen the burden on our

roads. The strategy aims to increase rail market share by moving rail friendly cargo from road to rail.

The target for the medium term to 2019 is to increase rail market share by approximately 26 mtpa (2%

per annum).

Planning, designing and construction of a rapid rail project for the Moloto Development Corridor is

underway. A feasibility study has been completed into a transport solution to problems experienced

along the Moloto Corridor. The Moloto Development Corridor is now a registered Public Private

Partnership (PPP) and discussions are at an advanced stage between the DoT and National

Treasury. Interim measures of upgrading the R573 have been handed over to SANRAL. These

measures include intersection capacity and safety improvement, improvement of bus bays (position

and capacity), widening of structures (bridges), storm water and drainage structures, pedestrian and

non-motorised transport facilities, weigh bridges and vehicle testing centres.

The Single Transport Economic Regulator (STER) Bill was submitted to Cabinet for approval in the

period under review. The STER aims to provide, enhance and guarentee private sector investment in

areas that were exclusively State sectors. It will also manage the relationship between infrastructure

owners and operators in a transparent manner in which tariffs are set, enhance regulated competition

and provide opportunities for access to markets.

2.2 Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables below highlight the service

delivery plan and the achievements to date.

Main services and standards

Main services Beneficiarie

s

Current / Actual standard of

service

Desired standard

of service

Actual

achievement

Enhance all

services related

to Driving Licence

Testing Centres

RSA Citizens > 18 years of age

Quantity:

Daily: 5 days a

week

Render

Render driver’s

licence

services at 387

DLTC’s by:


47


s


service

Desired standard

of service

Actual

achievement

in the country by

providing:

New application

for Learner’s

Licence

New application

for Driver’s

Licence

Renewal of

Driver’s Licence

New application

for Professional

Driver’s License

Permit (PrDP)

Replacement of

PrDP

Replacement of

Learner’s

Licence

Replacement of

Driver’s Licence

Renew or

exchange of

Foreign Licence

Learners > 16 years of age

Foreigners > 18 years of age

driver’s licence

services at

387 DLTC’s

An average of

167

transactions

are concluded

per day (at

387 DLTC’S)

(transactions

include all the

different

services

Reducing

queuing times

Improve driver

training with

50%

Reduce

accidents

Computerise

processes e.g

computerised

learner’s licence

test

Take services to

the people

(driver training

and testing to

schools)

Reduce queuing

and waiting times

i.e client waits for

an average of 30

minutes

Improve driver

training by an

average of 100%

Reduce accidents

by an average of

75%

Computerise

processes by an

average of 100%

Take services to the

people by an

average of 100%

Reduced

queuing and

waiting times

with one hour i.e

client waits for an

average of 3

hours

Improve driver

training by an

average of 50%

Reduce

accidents by an

average of 40%

Computerise

processes by an

average of 60%

Take services to

the people by an

average of 5%

Quality:

Legal

standards if

applicable

(including

Standard

Operating

Procedures

sops)

National Road

Traffic Act ,

1996 (Act No.

93 of 1996)

Minimum

Service Delivery

Standards

Service level

agreements

Assessment on

baseline of service

standards

Review Minimum

Service Delivery

Standards to suit

the needs of the

public

Poor to Fair

Publish Minimum

Service Delivery

Standards on

Government

Gazette

Openess &

transparency

Annual reports

Information on

request

available

Website

Website

Brochures

Call Centre Reports

Survey Statistics

Feedback to clients

Outcome of

complaints

Annual reports

Information on

request available

Website

Redress Presidential

Hotline

Inspections

Inspections

Help Desk with

Feedback system to

customer

Call Centre Reports

Service Level

Agreements with all

DLTC’s

Presidential

Hotline

Inspections


48


s


service

Desired standard

of service

Actual

achievement

Complaints

addressed

through:

Complaint book

/ suggestion box

Station Manager

Municipality

Province

National

Department

Complaints

addressed

through:

Complaint

addressed /

suggestion box

Station Manager

Municipality

Province

National

Department

Complaints

addressed

through:

Complaint book /

suggestion box

Station Manager

Municipality

Province

National

Department

Questionnaires

Consultation 1 Help Desk

No relieve

system for

officers

(understaffed)

No visible

overseeing of

processes

Provinces

Municipalities

Station

Managers

National Help Desk

Improved work

processes

Frontline Trained

staff

Provinces

Municipalities

Station Managers

Create centralised

call centre at the

DoT

1 Help Desk

No relieve

system for

officers

(understaffed)

No visible

overseeing of

processes

Provinces

Municipalities

Station

Managers

Courtesy None

Security Officer

Customer

satisfaction surveys

Address complaints

and provide

feedback

Queue marshals to

assist the elderly

and physically

challenged

Customer

satisfaction

surveys

Queue marshals

to assist the

elderly and

physically

challenged

Access Services only

available at 387

DLTCs

No signage in

CBDs

Unclear Signage

Services available

at 387 DLTCs

Services at

participating

Schools for new

learner drivers

Signage for all

municipal and

provincial DLTCs

Services only

available at 387

DLTCs

Signage in some

municipal and

provincial DLTCs


49


s


service

Desired standard

of service

Actual

achievement

/not visible/None

No Service

Charters on

Display

No Service

Charters on

Display

Built in ramps in

some DLTCs

Draft Minimum

Service Delivery

Standards

Extended

business hours

Erect clear and

visible signage

Display standard

Service Charters

across 387 DLTCs

Built in ramps in

some DLTCs

Publish Minimum

Service Delivery

Standards for

comments

(Government

Gazette)

Extended business

hours

Unclear Signage

/not visible/None

No Service Some

Non standard

Charters on

Display

Built in ramps in

some DLTCs

Draft Minimum

Service Delivery

Standards

Extended

business hours

Information Website

No Brochures

available

No sign

language visible

No National

Help Desk/ Call

Centre

Website updated

Brochure printed

and distributed to all

DLTC’s

Improved access to

information

National Help Desk

implemented

Service Charters

Website

No Brochures

available

No sign language

visible

No National Help

Desk/ Call

Centre

Value for

money

None Reduced time spent

in DLTC’s

Reduce corruption

in DLTCs through

improved processes

Improved

Process (money

and time for

customers)

Computerised

System - (time

and efficiency)

Time: Target Achieved

by: 40%

Target Achieved by:

100%

Target Achieved

by: 40%

*Cost: Fees for

services vary

according to the

provinces

Fees will be

standardised

through all

pronivinces

Fees for services

vary according to

the provinces


50


s


service

Desired standard

of service

Actual

achievement

Human

Resources:

Training to:

DLTC

Inspectorate

Road Safety

Officers

Customer

Service Officials

Cashiers

Develop draft

training plan

National Help Desk

Assistants

Information

Sessions to all 9

Provinces

Training Centre for

e-Natis in KZN and

Western Cape

DLTC Inspectorate

Road Safety

Officers

Customer Service

Officials

Cashiers

Implement training

plan

Information

Sessions to all 9

Provinces

Training Centre

for e-Natis in

KZN and

Western Cape

Finalise training

plan

Batho Pele arrangements with beneficiaries (Consultation access etc.)

Current/actual arrangements Desired arrangements Actual achievements

Suggestion Boxes Suggestion Boxes Suggestion Boxes

Complaints Register Complaints Register Complaints Register

Call centre (provincial and

national)

Service delivery information tool

Current/actual arrangements Desired arrangements Actual achievements

Provincial Websistes Service Charters Provincial Websistes

SA Learners Website Information Brochures SA Learners Website

Some Service Charters Websites Some Service Charters

National Call Centre

Complaints mechanism

Current/actual complaints

mechanism

Desired complaints

mechanism

Actual achievements

Complaints Register Call centre (provincial and

national)

Call centre (provincial and

national)

2.3 Organisational environment

In order to respond to its service delivery mandate, the department aligned and optimised its use of

resources. No structural modifications were made during the financial year and this ensured stability

and economic, effiecient and effective performance. The current DoT structure puts extensive


51

emphasis on the various modes of transport. Complementing this modal approach are two

programmes that seek to provide strategic support to the key programmes of the DoT, namely

Administration and Integrated Transport Planning.

Programme 1: Administration – This programme comprises the Ministry, Office of the Director-

General (ODG), Chief Operations Officer (COO), Chief Financial Officer (CFO) and Transport

Information Systems (TIS)

Programme 2: Integrated Transport Planning

Programme 3: Rail Transport

Programme 4: Road Transport

Programme 5: Civil Aviation

Programme 6: Maritime Transport

Programme 7: Public Transport

Within the period under review, the department has worked diligently to reduce the number of vacant

posts that exist. 134 vacant posts were filled through improvements in internal processes that allowed

for a better success rate in filling of posts in a timely manner. Crucial to the success of the department

was the appointment of a new Director-General during the last quarter of the financial year which

would bring stability and a consistent strategic trajectory. The department will continue to strive

towards reducing the vacancy rate from 23.34% to 10% in the 2015/16 financial year.

2.4 Key policy developments and legislative changes

The Draft Multi-Modal Transport Planning and Coordination Draft Bill was developed. The Bill will

assist in facilitating integrated Macro-Transport Systems Planning in view of guiding investments in

the sector.

The fourth draft Single Transport Economic Regulator (STER) Bill was developed and

submitted to the Minister for approval to proceed to Cabinet. Once approved, STER will

address current fragmentation and inconsistent economic regulation in the sector.

Institutional Gap Analysis was conducted on the White Paper on the National Transport Policy (1996).

The analysis will assist in identifying key areas of the policy for review and strengthening.

The draft Regional Corridor Strategy and the Reviewed National Freight Logistics Strategy (NFLS)

were developed. These strategies seek to enhance integrated and seamless movement of freight

across all modes of transport.

The draft White Paper on National Rail Transport Policy has been developed. The policy aims to set

institutional arrangement to drive investment and reform in the Rail Industry.

The draft Branchline Strategy has been developed. The strategy will enhance sector performance

through reduction of direct transport costs and externality charges for the economy, especially in rural

areas.

The draft Road Infrastructure Policy was completed. The policy aims to facilitate investment for the

implementation of the Road Infrastructure Strategic Framework of South Africa (FISFSA) in line with

the S’hamba Sonke and Road Infrastructure Asset Management Programmes.


52

The draft Road Safety Policy was enhanced through comments and inputs resulting from stakeholder

engagements with Provinces, Sectors, Entities and Industry in the period under review.

National Civil Aviation Policy was submitted to the Minister for Cabinet consideration. This was

developed to enhance the maintenance and strategic expansion of the Civil Aviation infrastructure

network for improved efficiency and competitiveness

The Amendment Bills for ACSA and ATNS was submitted to the Minister for consideration.

The 8th Amendment of the Civil Aviation Regulation (which includes the non-addition of Chapter 2

Aircrafts to the Aircraft Register) was submitted to the Minister for consideration.

The National Learner Transport Policy was amended after comments were received following the

publication of the policy in the third quarter and re-submitted to Cabinet. The policy aims to provide a

policy framework to address the challenges learners encounter on a daily basis and overall

management of learner transport.

LEGISLATIONS PROMULGATED DURING THE YEAR 2014/15

No legislations were promulgated during the period under review.

3. STRATEGIC OUTCOME ORIENTED GOALS

The work of the department for the 2014/15 financial year was implemented under the following

strategic outcome oriented goals:

1. An efficient and integrated infrastructure network that serves as a catalyst for social and

economic development

To achieve this goal, the DoT developed policies and promulgated legislation that are set to drive

investments for the maintenance and strategic expansion of the transport infrastructure network; and

support the development of transport asset management systems in rural and provincial authorities.

The drive of these interventions was to improve the efficiency, capacity and competitiveness of all

modes of transport.

2. A transport sector that is safe and secure

The DoT continued to promote and ensure implementation of policy interventions and strategies that

sought to reduce accidents and incidents in the road, rail, aviation and maritime environments.

3. Improved rural access, infrastructure and mobility

Through the scholar transport and non-motorized transport interventions, the DoT aimed to increase

mobility and rural access in rural district municipalities.

4. Improved public transport systems

The DoT ensured an effective, efficient, affordable and accessible public transport system in urban

and rural areas through the development and implementation of integrated public transport networks,

establishment and strengthening of regulatory entities, refurbishment and acquisition of new rail


53

rolling stock and upgrading priority passenger rail corridors.

5. Increased contribution to job creation

Implementation of BBBEE and commissioning of labour-intensive projects by the DoT increased the

creation of jobs in the sector.

6. Increased contribution of transport to environmental protection

Reduction of greenhousegas emissions through the use of more energy efficient modes of freight and

passenger transport and promoting the use of cleaner fuels ensured that the impact of the sector on climate

change ws minimised.


54

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 PROGRAMME 1: ADMINISTRATION

Purpose of programme

The programme exists to provide leadership, strategic management and administrative support to the department. This is achieved through continuous

refinement of organisational strategy and structure in line with appropriate legislation and best practice.

Branches

1. Office of the Director-General (ODG)

2. Office of the Chief Operations Officer (COO)

3. Office of the Chief Financial Officer (CFO)

Programme Strategic Objectives

1. Strategic Objective 7.1: Provide key strategic support and corporate services to the Department of Transport (DoT)

2. Strategic Objective 7.2: Ensure good governance and a sound control environment


55

Administration: Performance against Pre-determined Targets

Strategic Objective 7.1: Provide key strategic support and corporate services to the Department of Transport (DoT)

Objective Statement: To coordinate functions of human resource management and development, communications, legal and strategic planning in

support of DoT programmes

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET

ACTUAL PERFORMANCE AGAINST

TARGET

REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS

Integrated

Communications

and Marketing

Strategy

approved by June

2015

Integrated

Communication

and Marketing

Strategy

submitted to

EXCO for

approval

The draft Marketing and Communication

Strategy was developed. The strategy was

presented to Transport Communicators and

DoT Branch representatives on 28th August

2014 and DoT EXCO on the 23rd of March

2015.

No deviation. None

Departmental

Legislation

processed to

Parliament for

adoption annually

Merchant

Shipping

Amendment Bill,

2014 published

The Merchant Shipping Amendment Bill

was submitted to the Speaker of the

National Assembly and the Chairperson of

the NCOP for debate in Parliament in the

second Quarter of the financial year.

Publication of the Merchant Shipping Amendment

Bill is dependant on the Bill being presented in

Parliament, which is a process beyond the control

of the Department.

The DoT will await an invitation from Parliament to present the Merchant Shipping Amendment Bill.

Adjudication of

the Road Traffic

Offences

Amendment Bill

2014 submitted

to parliament for

approval

The final draft of the Adjudication of the

Road Traffic Offences Amendment Bill was

submitted to NEDLAC and the Minister

approved for the Amendment Bill to be

submitted to Cabinet.

The Bill could not be presented at the DG Cluster

and Cabinet due to prolonged consultations with

stakeholders.

The process will be fast tracked in the 2015/16 financial year for conclusion.

International International The draft International Relations Strategy No deviation None


56




PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


Relations (IR)

Strategy

approved by

March 2015

Relations

Strategy

submitted to

EXCO for

approval

was developed in the first Quarter of the

financial year. Stakeholder consultations on

the draft strategy commenced in the third

Quarter of the financial year and the final

draft was presented to EXCO on the 23rd of

March 2015.

Number of

vacancies filled

annually

80 vacancies

filled

134 vacancies were filled within the

financial year.

Over performance was mainly due to an improvement with the number of shortlisting and interviews undertaken and the higher success rate of successful candidates who accepted their offers.

None

Transport Sector

Human Resource

Development

Strategy

approved by June

2015

Transport Sector

HRD Strategy

submitted to

EXCO for

approval

Extensive stakeholder engagements were

conducted and a draft Transport Sector

HRD Strategy was developed. Draft

Chapters were submitted to stakeholders

for final inputs and adoption with a due date

28 February 2015.

Prolonged stakeholder engagements. Stakeholder engagements will be concluded in the first Quarter of the 2015/16 financial year. The strategy will then be finalised and submitted to EXCO.

DoT HRD

Strategy

Framework

implemented

30 interns

selected and

placed

57 interns were selected and placed across

all branches.

Additional funding to the amount of R1.7m from

Transport Education & Training Authority (TETA)

Discretionary Grant contract no:

TETA14/RF/DG030 complimented the

None


57




PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


annually Department’s allocated budget which allowed for

27 more interns to be appointed.

Transport Sector

Drug Master Plan

approved by

March 2015

Transport Sector

Drug Master Plan

submitted to the

Minister for

approval

A draft Transport Sector Drug Master Plan

2013 – 2017 has been developed.

Extensive stakeholder consultations on the

draft plan were conducted. The plan was

submitted to EXCO on 30th March 2015.

Prolonged consultation process. Stakeholder engagements will be concluded in the first Quarter of the 2015/16 financial year and the Transport Sector Drug Master Plan will be submitted to the Minister.

DoT Strategic

Plan and Annual

Performance Plan

tabled in

Parliament

annually

DoT Strategic

Plan 2015 – 20

and Annual

Performance

Plan 2015/16 –

2017/18

submitted to

Parliament

The DoT Strategic Plan 2015 – 20 and

Annual Performance Plan 2015/16 –

2017/18 were submitted to and tabled in

Parliament on the 11th March 2015.

No deviation. None


58




PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


DoT Quarterly

and Annual

Performance

Reports tabled in

Parliament

DoT quarterly

reports and

Annual Report

2013/14

submitted to

Parliament

The DoT Quarterly Performance Reports for

Quarter 4 of the 2013/14 financial year and

Quarter 1, 2 and 3 of the 2014/15 financial

year were submitted to the Department of

Planning, Monitoring and Evaluation

(DPME) and presented to the Parliament

Portfolio Committee on Transport (PCOT).

The DoT Annual Report 2013/14 was

finalised and submitted to Parliament for

tabling on the 30th September 2014.

No Deviation.

None

Strategic Objective 7.2: Ensure good governance and a sound control environment

Objective Statement: To render financial administration, supply chain management, risk management, budgeting and management accounting

services to the DoT

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET

REASON FOR DEVIATION CORRECTIVE

MEASURE &

ADDITIONAL

COMMENTS

Financial

governance

compliance and

control improved

Action plans to

address audit

findings

developed and

Action plans to address the audit findings

for the 2013/14 financial year were

developed and tabled at the Audit

Committee on 21st August 2014.

No deviation. None


59



services to the DoT

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

monitored

Progress reports on action plans to address

the audit findings for the 2013/14 financial

year were tabled at Audit Committee

meetings of 18th November 2014 and 12th

March 2015.

DoT financial

performance

monitored

annually

DoT budget and

expenditure

monitored

Monthly reports on expenditure were

compiled for each month of the 2014/15

financial year.

No deviation. None

Management

accounting and

supply chain

management

improved

Supplier

database

updated

The supplier database was updated on a

quarterly basis.

The annual advertisement to suppliers was

published on 8th August 2014 and a total of

862 applications were received. 837

applications were screened through CIPRO

and 781 were captured on the database.

Non-complying applications were referred

back to suppliers.

No deviation. None

DoT assets

verified and

reconciled

Asset reconciliation reports were compiled

for March 2014 – February 2015.

An annual verification report was compiled.

No Deviation. Asset reconciliation

project to verify

physical assets to

asset register and


60



services to the DoT

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

correct all

differences is

underway. Lists of

unverified major

assets were

handed out to

Programmes to

verify the assets,

which are awaited.

Bid and quotation

processes

coordinated

A total of five Bid Adjudication Committee

(BAC) meetings were held in the financial

year. Where BAC meetings did not take

place, bids were approved on a Round

Robin basis.

The targeted number of BAC meetings did not

take place due to the Committee not forming a

Quorum.

A new BAC was

appointed and will

become operational

after training is

provided for new

members.

DoT risk profile

updated annually

Risk mitigation

plans developed

and monitored in

line with

predetermined

objectives

The Risk Management Policy and Strategic

Framework was reviewed to inform the

Department’s future endeavour of risk

identification, assessment and monitoring.

Progress on the implementation of risk

mitigation plans monitored as targeted and

the DoT risk profile has been updated.

No Deviation. None


61



services to the DoT

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

DoT Internal

Audit Charter

reviewed and

implemented

annually

Audits conducted Audits were conducted within the financial

year.

Assurance and Performance Audit Reports

were issued.

No Deviation. None

Internal Audit

Charter and audit

plans approved

Internal Audit Plans (Three year and

Annual) were tabled and provisionally

approved by the Audit Committee.

The Internal Audit Charter was revised and

approved by the Audit Committee (AC) on

the 12th March 2015

No Deviation. None

STRATEGY TO OVERCOME UNDER-PERFORMANCE

As part of the Department’s continued endeavor to improve performance, measures will be put into place to ensure that best practices with regard to

performance information are incorporated into the processes of the Department. As a first step, the DoT Planning, Monitoring and Reporting Guidelines will

be reviewed and strengthened to address pertinent issues that lead to under-performance in various programmes. A number of performance standards have

been identified and will be discussed at various structures for approval to be incorporated into the Guidelines.

For the next planning period, improvements will be made to the Technical Indicator Descriptions, which will better assist the Department in ensuring that

performance is better managed; and that portfolios of evidence for all quarterly and annual targets are pre-determined and explicitly defined.

A separate plan will be developed to ensure that the annual targets, which were not achieved in the 2014/15 financial year, will be monitored and reported on.


62

Progress updates will be made to EXCO on a quarterly basis until all targets are achieved.

The Department will continue to proactively identify and address potential areas of non-performance through continuous monitoring and consultations with

respective programmes.

Capacity challenges, as a result of the Departmental high vacancy rate, will continue to receive attention to ensure that affected programmes have the

necessary resources to achieved predetermined targets.

Prolonged stakeholder consultations were the main reason for under-performance in the programme. Whilst these consultations are vital, the programme

needs to ensure that they are better planned and project managed. This will be taken into cognisance in planning for the 2015/16 financial year.

In addressing the underperformance experienced in Bid and Quotation processes, a new Bid Adjudication Committee (BAC) was appointed in the period

under review and will become operational after training is provided for new members.

CHANGES TO PLANNED TARGETS

No changes were made to planned targets in the 2014/15 Annual Performance Plan.


63

Linking performance with budgets

Programme Expenditure

Sub- Programme Name

2014/15 2013/14

Final Actual (Over) / Under Expenditure


Appropria-tion Expenditure Appropria-tion Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

1.1: Ministry 35,949 35,571 378 34,413 33,049 1,364

1.2: Management 53,731 44,748 8,983 48,754 48,425 329

1.3: Corporate Services 209,224 205,347 3,877 166,545 166,469 76

1.4: Communications 41,713 41,700 13 43,961 33,710 10,251

1.5: Office Accommodation 50,272 50,272 - 39,767 33,925 5,842

390,889 377,638 13,251 333,440 315,578 17,862


64

4.2 PROGRAMME 2: INTEGRATED TRANSPORT PLANNING (ITP)


The programme exists to manage and facilitate national transport planning, related policies and strategies; and coordinate regional as well as inter-sphere

relations including providing economic modelling and analysis of the sector.

Sub-Programmes

1. Transport Planning

2. Regional Integration

3. Modeling and Economic Analysis

4. National Freight Logistics

5. Research and Innovation


1. Strategic Objective 1.1: Facilitate integrated macro-transport systems planning to guide investments in the sector

2. Strategic Objective 1.2: Promote local, regional and continental integration of transport infrastructure and operations

3. Strategic Objective 1.3: Improve economic transformation and performance of the transport sector

4. Strategic Objective 6.1: Reduce GHG emissions in the transport sector (National Reduction Target = 34% by 2020)


65

Integrated Transport Planning: Performance against Pre-determined Targets

Strategic Objective 1.1: Facilitate integrated macro-transport systems planning to guide investments in the sector

Objective Statement: To formulate and implement national transport macro-planning legislation, policies and strategies

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Multimodal

Transport

Planning and

Coordination Bill

enacted

by March 2017

Draft Multimodal

Transport

Planning and

Coordination Bill

developed

The Project Technical Committee approved

the draft Inception & Status Quo reports on

the 23rd February 2015.

The Draft Multi-Modal Transport Planning

and Coordination Draft Bill was developed

and presented to the National Transport

Forum held on the 12th March 2015.

No Deviation. None

NATMAP 2050

approved by June

2015

NATMAP

submitted to

Cabinet for

approval

The NATMAP 2050 document has been

updated with IMC recommendations and

the NATMAP 2050 Synopsis Draft

discussion document was completed.

The PICC could not be consulted on the

NATMAP 2050.

The DoT will

consult with the

PICC and submit to

Cabinet in the

2015/16 financial

year.

National

Transport Policy

approved by

March 2018

Institutional audit

and the

respective

functionality

between 1996

and 2014

conducted

Developed the Project Inception Report

which was approved by the Steering

Committee and conducted the Institutional

Audit / Gap Analysis.

No Deviation. None


66

Strategic Objective 1.2: Promote local, regional and continental integration of transport infrastructure and operations

Objective Statement : To develop and implement of strategies aimed at enhancing seamless movement of freight across all modes of transport

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Durban-Free

State-Gauteng

Logistics and

Industrial Corridor

projects

implemented by

March 2019

Funding Strategy

submitted to the

Steering

Committee for

approval

An Integrated Priority Project Schedule was

developed.

Engagements between DoT and the Free

State Province on N3 De Beers Pass and

Harrismith alignment of the Maluti-A-

Phofung SEZ was conducted.

The draft Funding strategy was completed

and submitted to EXCO.

The Steering Committee meeting scheduled for

March 2015 did not take place according to the

project plan.

The Funding

Strategy will be

finalised in the

2015/16 financial

year.

Regional Corridor

Strategy

approved by June

2015

Draft Regional

Corridor Strategy

developed

The Project Steering Committee was

established in the second Quarter. The

Desktop review report and benchmark

exercise was submitted to the Steering

Committee meeting held on the 24th

November 2014.

The draft Regional Corridor Strategy was

developed.

No Deviation. None

The Study report

on the impact of

freight accidents

on South African

roads finalised by

March 2015

The draft study

report on the

impact of freight

accidents

developed

The final draft study report including a

literature review, situational analysis,

accident procedures investigation &

economic analysis was developed.

The report was submitted to EXCO on the

No Deviation. None


67

Strategic Objective 1.2: Promote local, regional and continental integration of transport infrastructure and operations

Objective Statement : To develop and implement of strategies aimed at enhancing seamless movement of freight across all modes of transport

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

31st March 2015.

Reviewed

National Freight

Logistics Strategy

(NFLS) approved

by March 2016

Draft National

Freight Logistics

Strategy

developed

The draft National Freight Logistics Strategy

Report was developed.

No Deviation. None

Strategic Objective 1.3: Improve economic transformation and performance of the transport sector

Objective Statement: To facilitate investments in all transport value chains and increase competitiveness of the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Single Transport

Economic

Regulator (STER)

established

through

promulgation of

legislation by

December 2015

The STER Bill

submitted to

Cabinet for

approval

The draft position paper was finalised and

submitted to the Minister for approval.

Stakeholder consultations were conducted

with SANRAL, DPE, TNPA, TPT, Transnet

Group, ACSA, PRSA and TFR.

The fourth draft STER Bill was developed

and submitted to the Minister for approval

to proceed to Cabinet.

No Deviation. None

Transport

B-BBEE Charter

Business plan for

the BBBEE

The BBBEE Charter Council was approved

by the Minister in the first Quarter of the

No Deviation. None


68

Strategic Objective 1.3: Improve economic transformation and performance of the transport sector

Objective Statement: To facilitate investments in all transport value chains and increase competitiveness of the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Council

established by

March 2015

Charter Council

submitted to the

Minister for

approval

financial year and launched in December

2014. The Business Plan for the Charter

Council was then developed and submitted

to the Minister.

Rural accessibility

/ multi-deprivation

index approved

by March 2015

Rural

accessibility /

multi-deprivation

index submitted

to EXCO for

approval

A field survey was conducted in 8

Provinces. Computation of the index,

capturing and coding of the data was

completed.


in October 2014 to discuss the preliminary

project findings.

The rural accessibility / multi-deprivation

index report was submitted to EXCO on

the 27th March 2015.

No Deviation. None

Strategic Objective 6.1: Reduce GHG emissions in the transport sector (National Reduction Target = 34% by 2020)

Objective Statement: To develop and monitor implementation of interventions aimed at reducing emission in the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Energy Final report on The draft report on the energy No Deviation. None


69

Strategic Objective 6.1: Reduce GHG emissions in the transport sector (National Reduction Target = 34% by 2020)

Objective Statement: To develop and monitor implementation of interventions aimed at reducing emission in the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Consumption

Reduction

Strategy

developed by

March 2016

the energy

consumption

reduction study

submitted to

EXCO for

approval

consumption reduction study was

developed and stakeholders were

consulted.

The final report was submitted to EXCO.

Greenhouse Gas

(GHG) Emission

Inventory Report

developed by

March 2016

Tier 2 GHG

inventory report

submitted to

EXCO for

approval

Emission indicators have been identified

and a database to input the emissions data

was developed.

Indicators were populated and the draft

report was compiled.

The draft report could not be submitted as there

exists no Maritime database that could be used.

The process to develop Maritime database has

been initiated.

The development of

the Maritime

database will be

finalised in 2015/16

and then the Tier 2

GHG inventory

report will be

finalised in the

2015/16 financial

year.


In the period under review, prolonged stakeholder consultations were one of the common reasons for under performance in the programme. Whilst these

consultations are vital, the programme needs to ensure that they are better planned and project managed. This will be taken into cognisance in planning for

the 2015/16 financial year.

Consultations with the PICC will be fast tracked in the 2015/16 financial year to allow submission of the NATMAP to Cabinet.

The funding strategy for the Durban – Free State – Gauteng logistics and industrial corridor projects will be presented to the Steering Committee and

finalised in the 2015/16 financial year.


70

The Tier 2 Greenhouse Gas Emission Inventory Report will be finalised in the 2015/16 financial year following the development of the Maritime database.




71


Sub-programme expenditure

Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

2.1: Macro Sector Planning 13,291 13,291 - 9,307 8,992 315

2.2: Logistics 13,545 13,548 (3) 16,039 16,038 1 2.3: Modeling and Economic

Analysis 19,779 19,781 (2) 22,928 21,808 1,120

2.4: Regional Integration 7,688 7,688 - 6,105 6,105 -

2.5: Research and Innovation 14,104 14,104 - 14,467 7,364 7,103 2.6: Integrated Transport Planning

Administration Support 6,567 6,562 5 6,067 6,066 1

74,974 74,974 - 74,913 66,373 8,540


72

4.3 PROGRAMME 3: RAIL TRANSPORT


The programme exists to facilitate and coordinate 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; and to monitor and oversee the Railway Safety Regulator and

the Passenger Rail Agency of South Africa; and the implementation of integrated rail services planned through the lowest competent sphere of government.

Sub-Programmes

1. Rail Regulation

2. Rail Infrastructure and Industry Development

3. Rail Operations


1. Strategic Objective 1.5: Enhance performance, efficiency and reliability of the rail transport sector

2. Strategic Objective 2.1: Ensure a safe railway and conducive regulatory environment


73

Rail Transport: Performance against Pre-determined Targets

Strategic Objective 1.5: Enhance performance, efficiency and reliability of the rail transport sector

Objective Statement: To develop and implement interventions aimed at improving rail operational performance levels and increasing rail market

share through the reduction of logistical cost of freight movement and increase in passenger rail volumes

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

National Rail

Transport Policy

approved by

March 2016

Draft White Paper

on the National

Rail Transport

Policy developed

Extensive consultations were conducted on

the National Rail Transport Green Paper.

Stakeholders included Rail experts, the

Department of Public Enterprises, National

Treasury, the Department of Trade and

Industry and Transnet Freight Rail (TFR).

The revised Green Paper was then

presented to the National Rail Policy

Steering Committee on 21st October 2014

for permission to submit to Cabinet.

The draft White Paper on National Rail

Transport Policy was then developed based

on issues emanating from the draft Green

Paper.

No Deviation. None

Branchline

Strategy

approved by

March 2016

Draft Branchline

Strategy

developed

Strategic branchlines were defined and

identified; and the Draft Branchline Strategy

was developed

No Deviation. None


74

Strategic Objective 1.5: Enhance performance, efficiency and reliability of the rail transport sector

Objective Statement: To develop and implement interventions aimed at improving rail operational performance levels and increasing rail market

share through the reduction of logistical cost of freight movement and increase in passenger rail volumes

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Interim Rail

Economic

Regulatory

capacity

established by

March 2015

Ministerial task

team for the

regulatory

capacity

appointed

International benchmarking on regulatory

information was conducted and a

Memorandum of Understanding (MoU) was

signed between the Ministers of Transport

and Public Enterprises.

A Gap Analysis on rail economic regulatory

information was conducted and the draft

guideline for the submission of rail

economic regulatory information was

completed.

No Deviation. None

Detailed design

of the Moloto Rail

Development

Project

completed by

March 2018

Application of the

Treasury

Approval 1

submitted to the

National Treasury

Treasury Approval 1 was submitted to

National Treasury on 30th October 2014

and the application is currently under review

by the currently under review by the PPP

Unit in National Treasury.

No Deviation. None


75


In the period under review, prolonged stakeholder consultations were a key challenge for the programme. The Green Paper on the National Rail Policy will be

published for public comments and concluded in the new financial year.



Strategic Objective 2.1: Ensure a safe railway and conducive regulatory environment

Objective Statement: To develop and implement interventions aimed at enhancing rail transport safety

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

National Rail

Safety Strategy

(NRSS) approved

by March 2017

Safety Gap

Analysis Report

finalised and

submitted to the

Strategic

Management

Committee (SMC)


on the preliminary Railway Safety

Regulation Gap Analysis.

The Gap Analysis Report was then finalised

and approved by EXCO on 23rd March

2015 for submission to SMC.

No Deviation. None


76



Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

3.1: Rail Regulation 10,394 10,394 - 5,624 5,624 - 3.2: Rail Infrastructure and Industry

Development 13,741 13,740 1 14,932 14,930 2

3.3: Rail Operations 9,918 9,919 (1) 4,215 4,215 -

3.4: Rail Oversight 14,998,036 14,998,036 - 11,205,628 11,205,628 -

3.5: Rail Administration Support 3,418 3,418 - 2,444 2,443 1

15,035,507 15,035,507 - 11,232,843 11,232,840 3


77

4.4 PROGRAMME 4: ROAD TRANSPORT


The programme exists to develop and manage an integrated road infrastructure network, regulate road transport, ensure safer roads, and oversee road

agencies.

Sub-Programmes

1. Road Engineering Standards

2. Road Infrastructure and Industry Development

3. Road Regulation

4. Project Management and Financial Administration

5. Public Entity Oversight

6. Drivers Licence Card Entity


1. Strategic Objective 1.4: Ensure a sustainable transport infrastructure network

2. Strategic Objective 2.2: Regulate and enhance road transport safety

3. Strategic Objective 5.1: Contribute to job creation in the transport sector


78

Road Transport: Performance against Pre-determined Targets

Strategic Objective 1.4: Ensure a sustainable transport infrastructure network

Objective Statement: To maintain and rehabilitate key national, provincial and local road infrastructure

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

National,

provincial and

local roads

improved and

preserved

annually

Monitor

rehabilitation of

1 100 lane-km of

surfaced roads by

provinces

Rehabilitation of 1 100 lane-km of surfaced

roads by provinces monitored.

No Deviation. None

Monitor resealing

of 3 000 lane-km

of roads by

provinces

Resealing of 3 000 lane-km of roads by

provinces monitored.

No Deviation. None

Monitor re-

gravelling of

3 000 km of

gravel roads re-

gravelled by

provinces

Re-gravelling of 3 000 km of gravel roads

re-gravelled by provinces monitored.

No Deviation. None

Monitor patching

of 810 000 m2 of

blacktop by

provinces

(including

potholes)

Patching of 810 000 m2 of blacktop by

provinces (including potholes) monitored.

No Deviation. None


79

Strategic Objective 1.4: Ensure a sustainable transport infrastructure network

Objective Statement: To maintain and rehabilitate key national, provincial and local road infrastructure

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Monitor blading of

350 000 km of

gravel roads by

provinces

Blading of 350 000 km of gravel roads by

provinces monitored.

No Deviation. None

Road

Infrastructure

Policy for SA

approved by

March 2016

Draft Road

Infrastructure

Policy submitted

to EXCO for

approval

Needs analysis conducted and policy

framework compiled. Stakeholder

consultations on the draft were conducted.

The draft Road Infrastructure Policy was

presented to EXCO on the 30th March

2015.

No Deviation. None

Strategic Objective 2.2: Regulate and enhance road transport safety

Objective Statement: To develop and monitor implementation of integrated road safety policies and programmes aimed at decreasing the number

of accidents, incidents and fatalities (2% reduction annually to 2019)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Road Safety

Policy approved

by March 2016

Needs analysis

and stakeholder

consultations

conducted on the

development of

the Road Safety

Needs analysis and consultations with

RTMC, RTIA, CBRTA, and Gauteng

Province were conducted in the third

Quarter of the financial year.

Further engagements were conducted with

No Deviation. None


80

Strategic Objective 2.2: Regulate and enhance road transport safety

Objective Statement: To develop and monitor implementation of integrated road safety policies and programmes aimed at decreasing the number

of accidents, incidents and fatalities (2% reduction annually to 2019)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Policy Provinces, Sector Organisations, Public

Entities and Industry.

Implementation of

the 365-Day

Road Safety

Programme

monitored

annually

365 road safety

programmes

implemented

Festive season campaign launched on the

28th November 2015 and Provincial Multi-

Disciplinary Roadblocks monitored in

KwaZulu-Natal, Gauteng, Mpumalanga,

Free State and Western Cape.

Progress Report on Implementation of

Road Safety Programmes completed.

No Deviation. There is a need

to intensify the

implementation

of the 365-Day

Road Safety

Programme in

all Provinces.

Strategic Objective 5.1: Contribute to job creation in the transport sector

Objective Statement: To create job opportunities through the implementation of road transport programmes and internships

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Number of Full

Time Equivalent

(FTE) Jobs

created through

the

implementation of

the PRMG

60 100 FTEs

created

55 456 Interim report pending verification by Public Works Baseline to be

reviewed based

on type of

projects

Provinces are

implementing.


81


Objective Statement: To create job opportunities through the implementation of road transport programmes and internships

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

projects annually

Number of

SMMEs

supported

through the

implementation of

the PRMG

projects annually

40 SMMEs

supported

A total of 298 SMMEs were supported

through the implementation of the PRMG.

These include 58 contractors who attended

the Contractor Development Workshop in

December 2014 and the 240 SMMEs

supported through Contractor Development

Programme (CDP)

The Contractor Development Programme (CDP)

supported and employed more SMMEs than

anticipated.

None


Coordination of the concurrent function of rehabilitation and maintenance of road infrastructure needs to be improved. A structured stakeholder engagement

process with clear responsibilities and timelines will be agreed between the DoT and Provincial Departments.




82



Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

4.1: Road Regulation 208,751 521,945 (313,194) 369,815 1,222,035 (852,220) 4.2: Road Infrastructure and

Industry Development 35,837 35,837 - 34,033 34,032 1

4.3: Road Oversight 21,546,277 21,625,925 (79,648) 19,480,276 19,396,802 83,474

4.4: Road Administration Support 6,678 6,678 - 6,729 6,340 389

4.5 Road Engineering Standards 12,477 12,477 - 6,356 6,355 1

21,810,020 22,202,862 (392,842) 19,897,209 20,665,564 (768,355)


83

4.5 PROGRAMME 5: CIVIL AVIATION


The primary purpose of the programme is to facilitate 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; and to oversee aviation public entities.

Sub-Programmes

1. Aviation Regulation

2. Aviation Infrastructure and Industry Development

3. Aviation Safety and Security

4. Aviation Oversight

5. Aviation Administration Support

6. Mthatha Airport

Programme Strategic objectives

1. Strategic Objective 1.5: Enhance performance, efficiency and reliability of the transport sector

2. Strategic Objective 2.3: Regulate and enhance civil aviation safety and security


4. Strategic Objective 6.1: Contribute to environmental protection in the transport sector


84

Civil Aviation: Performance against Pre-determined Targets

Strategic Objective 1.5: Enhance performance, efficiency and reliability of the transport sector

Objective Statement: To promulgate and implement legislation, policies and strategies aimed at ensuring effective air transport and local, regional

and international cooperation

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Permission application process for ACSA and ATNS levies approved by March 2015

2015/16 –

2019/20

Permission

promulgated

The approach document, incorporating the

funding model, was developed in the

second Quarter of the financial year.

The 2015/16 – 2019/20 Permission was

promulgated in the Government Gazette.

No Deviation. None

Amendment Bills for the ACSA Act and ATNS Act approved by March 2017

Draft Amendment

Bills submitted to

the Minister for

approval

The draft Amendment Bills for the ACSA

Act and the ATNS Act were gazetted for

public comments in the third Quarter.

Comments were incorporated and the draft

Amendment Bills were submitted to the

Minister on the 18th March 2015.

No Deviation. None

1st Amendment

of the Civil

Aviation Act,

2009

promulgated by

March 2016

Submit Draft

Amendment Bill

to the Minister for

approval


on the Civil Aviation Amendment Bill in the

second and third Quarter of the financial

year.

The Amendment Bill was submitted to the

Minister for consideration.

No Deviation. None

National Civil National Civil Stakeholders were consulted on the draft No Deviation. None


85




PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Aviation Policy

(NCAP) approved

by Cabinet by

March 2016

Aviation Policy

submitted to the

Minister for

approval

National Civil Aviation Policy (NCAP) during

the third Quarter.

The NCAP was submitted to the Minister.

National Airports

Development

Plan (NADP)

approved by

Cabinet by March

2016

NADP submitted

to Minister for

approval

Stakeholders were consulted on the draft

National Airports Development Plan

(NADP) during the third Quarter.

The NADP was submitted to the Minister.

No Deviation. None

Number of

bilateral air

services

agreements

negotiated

5 agreements

negotiated

Air services negotiations were held

between RSA and the Republic of Gabon in

Libreville on 3rd and 4th September 2014.

A MoU was signed between the RSA and

the Republic of South Sudan to establish air

services arrangements following

negotiations that took place on 28th and

29th August 2014 in Juba, South Sudan.

A MoU was signed between RSA and the

Republic of Philippines to review the air

services arrangements between the two

countries following negotiations that took

No Deviation. None


86




PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

place on 12th and 13th August 2014 in

Pretoria.

Air services negotiations with Namibia and

Mozambique were conducted in March

2015.

Strategic Objective 2.3: Regulate and enhance civil aviation safety and security

Objective Statement: To investigate and report on aircraft accidents and incidents

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Safety

recommendations

generated from the

investigation of

aircraft accidents

and incidents

Investigate

aircraft

accidents and

incidents and

release reports

Investigated aircraft accidents and incidents

and released reports with safety

recommendations for each Quarter of the

financial year.

No Deviation. None


87


Objective Statement: To create job opportunities in the civil aviation sector through the promotion of aviation at schools, the transformation

Letsema and the commemoration of the International Civil Aviation Day (ICAD)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Aviation Industry

Transformation

promoted annually

Aviation Industry

Transformation

Letsema (AITL)

2014 hosted

The Aviation Industry Transformation

Steering Committee was established on the

2nd April 2014 in consultation with the

Aviation Industry.

The Plan of Action with priorities for the

Aviation Industry transformation over the

next three years, 2014/15 – 2016/2017,

was presented at the Aviation Industry

Transformation Steering Committee

meeting on 8th May 2014.

The Ministerial Roundtable on Aviation Transformation 2014 was held on the 25th August 2014. A draft report on the Ministerial Roundtable that incorporates recommendations of the meeting was developed.

Resource limitation – especially financial

resources linked to the hosting of the Ministerial

Roundtable in the 2nd Quarter of the financial

year.

The AITL is

planned for

August 2015.

International Civil

Aviation Day

(ICAD)

commemorated

annually

International

Civil Aviation

Day (ICAD)

2014

commemorated

ICAD 2014 was hosted at the Kimberley

Airport, Northern Cape, on the 5th to 7th

December and the ICAD 2014 report was

developed.

No Deviation. None

Number of schools 110 schools Awareness campaigns, career expos and Over achievement due to the nature of the events None


88


Objective Statement: To create job opportunities in the civil aviation sector through the promotion of aviation at schools, the transformation

Letsema and the commemoration of the International Civil Aviation Day (ICAD)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

visited to promote

aviation as a

career of choice

amongst learners

visited in 9

provinces

exhibitions were held where 435 schools

throughout the nine provinces were

exposed to aviation-related career choices.

held.

Strategic Objective 6.2: Contribute to environmental protection in the transport sector

Objective Statement: To minimise aviation noise, emissions and disaster risks

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Draft State Action

Plan on Carbon

Dioxide Emission

Reduction

developed by

March 2015

Consolidated

draft State Action

Plan


during the second and third Quarter of the

financial year.

The Draft State Action Plan was developed

and submitted to the Minister.

No Deviation. None

Regulations on

the phasing out of

the Chapter 2

Aircraft submitted

to the Minister for

approval


on the 12th September 2014.

The Regulations were drafted and

submitted to CARCOM. CARCOM

approved the regulations with amendments.

Prolonged stakeholder consultations. There is a need

to speed up the

process of

verification by

Legal Services.


89


Objective Statement: To minimise aviation noise, emissions and disaster risks

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

The Draft Regulations for phasing out of

Chapter 2 Aircraft (9th Amendment) have

been submitted to the Minister through

Legal Services.


The process of verification of regulations of the phasing out of the Chapter 2 Aircraft by legal services will be fast-tracked to permit the regulations to be

submitted to the Minister in the 2015/16 financial year.




90



Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

5.1: Aviation Policy and Regulations 26,081 26,101 (20) 27,410 27,408 2 5.2: Aviation Economic Analysis

and Industry Development 9,048 9,048 - 8,483 8,482 1 5.3: Aviation Safety, Security

Environment and Search and Rescue 64,651 64,651 - 61,796 61,795 1

5.4: Aviation Oversight 38,246 37,789 457 35,395 35,051 344

5.5: Aviation Administration Support 20,809 23,377 (2,568) 7,669 7,669 -

5.6: Mthatha Airport 2,131 - 2,131 104,762 8,197 96,565

160,966 160,966 - 245,515 148,602 96,913


91

4.6 PROGRAMME 6: MARITIME TRANSPORT


The programme exists to coordinate the development of a safe, reliable and economically viable maritime transport sector through the development of

policies, strategies, monitoring of the implementation plan and oversight of maritime related public entities, namely The Ports Regulator (PR) and South

African Maritime Safety Authority (SAMSA).

Sub-Programmes

1. Maritime Policy Development

2. Maritime Infrastructure and Industry Development

3. Maritime Infrastructure Monitoring and Evaluation



2. Strategic Objective 2.4: Regulate and enhance maritime transport safety


4. Strategic Objective 6.1: Contribute to environmental protection in the transport sector


92

Maritime Transport: Performance against Pre-determined Targets


Objective Statement: To promulgate and implement legislation, policies and strategies aimed at improving sector performance

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

National Maritime

Transport Policy

approved by

March 2016

Green Paper on

the Maritime

Transport Policy

developed

Internal stakeholders were consulted on the

draft Maritime Transport Policy in the third

Quarter of the financial year and a National

Workshop was held in Durban in February

2015 to develop the Green Paper.

Prolonged stakeholder consultations. The process will

be concluded in

the 2015/16

financial year

Strategic Objective 2.4: Regulate and enhance maritime transport safety

Objective Statement: To ensure reduced number of accidents and incidents in sea environment through development and enforcement of

regulations

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Amended

Maritime Security

Regulations

published by

March 2015

Amended

Maritime Security

Regulations

published

The Maritime Security Regulations were

amended and stakeholder consultations

were conducted.


be concluded in

the 2015/16

financial year

Mock Audit (in

preparation of

future compulsory

audits) conducted

by March 2015

Draft Mock Audit

Report submitted

to the Accounting

Officer for

approval

Site visits were successfully conducted.

A Memorandum of Cooperation was

developed with stakeholders including

SAMSA, SA Navy, Office of the


be concluded in

the 2015/16

financial year


93

Strategic Objective 2.4: Regulate and enhance maritime transport safety

Objective Statement: To ensure reduced number of accidents and incidents in sea environment through development and enforcement of

regulations

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Hydrographer and TNPA.

Legal representatives of the victims were

afforded additional time to prepare.

Cape Town

Agreement

(2012) on the

Implementation of

the provisions of

the Torremolinos

Protocol (1993)

ratified by March

2016

Torremolinos

Convention

submitted to the

ICTS Cluster for

approval

The Convention was submitted to State

Law Advisors of the Department of Justice

and DIRCO; and a Legal Opinion was

obtained.

The Convention was submitted to the ICTS

Cluster.

No Deviation. None


Objective Statement: To ensure creation of job opportunities through implementation of relevant charter and legislation (Maritime Labour Act)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

African Maritime

Charter ratified by

March 2016

African Maritime

Charter submitted

to the ICTS

Cluster for

The Charter was submitted to the ICTS

Cluster on 2nd December 2014 and on the

3rd March 2015.

No Deviation. None


94


Objective Statement: To ensure creation of job opportunities through implementation of relevant charter and legislation (Maritime Labour Act)

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

approval

Maritime Labour

Regulations

developed by

March 2016

Maritime Labour

Regulations

submitted to the

Minister for

approval

Consultations were conducted on the draft

Maritime Labour Regulations in the second

and third Quarter of the financial year.

Due to unexpected capacity constraints. The process will

be concluded in

the 2015/16

financial year.


Objective Statement: To reduce level of pollution at sea through implementation of conventions and legislation

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Interventions to

reduce pollution

levels at sea

implemented

First draft of the

Salvage Strategy

developed

A business case and gap analysis was

developed.

Prolonged internal processes. The process will

be concluded in

the 2015/16

financial year.

MARPOL IV & VI

Convention

submitted to

Parliament for

approval

The MARPOL IV & VI Convention was

submitted to PCOT on the 29th July 2014

and approved on the 19th August 2014.

No Deviation. None

HNS Fund and

Bunkers

HNS Fund was presented to the GGC on

the 24th November 2014.

Prolonged stakeholder consultations.

The process will

be concluded in


95


Objective Statement: To reduce level of pollution at sea through implementation of conventions and legislation

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Convention

submitted to

Parliament for

approval

The Bunkers Convention was submitted to

the GGC on the 13th March 2015.

the 2015/16

financial year.


Capacity challenges in the programme will continue to receive attention to ensure that programme has the necessary resources to achieve predetermined

targets.

Prolonged stakeholder consultations proved to be a common reason for under performance in the programme.

The Green Paper on the Maritime Transport Policy will be finanlised in the 2015/16 financial year.

Amended Maritime Security Regulations will be published in the 2015/16 financial year.

Mock Audit will be concluded in the 2015/16 financial year.

First draft of the Salvage Strategy will be finanlised in the 2015/16 financial year.

HNS Fund and Bunkers Convention will be finanlised in the 2015/16 financial year.




96



Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

6.1: Maritime Policy Development 11,388 11,069 319 9,247 9,246 1 6.2: Maritime Infrastructure and

Industry Development 6,491 6,453 38 5,921 5,921 - 6.3: Implementation, Monitoring and

Evaluations 58,795 58,763 32 60,086 60,085 1

6.4: Maritime Oversight 19,727 18,638 1,089 24,763 23,480 1,283 6.5: Maritime Administration

Support 5,341 4,700 641 3,540 3,539 1

101,742 99,623 2,119 103,557 102,271 1,286


97

4.7 PROGRAMME 7: PUBLIC TRANSPORT


The programme exists to transform land transport systems by legislation, institutional building, planning and capacitation in the medium term; to facilitate and

promote the provision of sustainable public transport through the use of safe and compliant vehicles and to develop empowerment systems within the public

transport sector; to improve public transport access and reliability by facilitating the development of Integrated Public Transport Networks and monitor and

evaluate progress in this regard; and to improve the management of scholar transport and ensure provision of quality public transport in rural areas.

Sub-Programmes

1. Public Transport Network Development

2. Public Transport Regulation

3. Public Transport Industry Development

4. Rural and Scholar Transport



2. Strategic Objective 3.2: Provide quality rural public and learner transport

3. Strategic Objective 4.1: Promote sustainable public transport

4. Strategic Objective 4.2: Improve public transport access and reliability



98

Public Transport: Performance against Pre-determined Targets


Objective Statement: To regulate public transport systems through legislation, institutional building and planning

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Revised Public

Transport

Planning

Requirements

approved by

March 2016

Consultations on

the draft public

transport planning

requirements

conducted with

nine (9) provinces

and selected

municipalities

The draft Minimum Requirements were

developed and submitted to the Department

of Arts and Culture for translation.

Consultations with provinces and selected

municipalities on draft Minimum Planning

Requirements were conducted on 23rd

October 2014.

The draft Minimum Planning Requirements

were published for public comments in

November 2014.

No Deviation None

Number of

appeals

processed in

terms of the

Transport Appeal

Tribunal Act

30 appeals 34 appeals processed. Demand driven targets. None


99

Strategic Objective 3.2: Provide quality rural public and scholar transport

Objective Statement: To improve the management of scholar transport and ensure provision of quality public transport in rural areas

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

National Learner

Transport Policy

approved by

March 2015

National Learner

Transport Policy

submitted to

Cabinet for

approval

Inter-Ministerial consultations were

conducted between the Ministers of

Transport and Basic Education on 9th June

2014 and the draft Policy was approved by

the Minister for submission to Cabinet.

The Policy was submitted to and approved

by Cabinet for public comments on the

22nd October 2014.

Public comments were received and

incorporated into the policy following

publication and the policy was re-submitted

to the Minister for approval to proceed to

Cabinet.

No Deviation. None

Number of

bicycles

distributed

annually (Shova

Kalula

Programme)

3 000 bicycles

distributed to

provinces

3 000 bicycles were distributed to the

provinces.

No Deviation. None

Reviewed Rural

Transport

Strategy

approved by

Draft Reviewed

Rural Transport

Strategy

submitted to

The draft reviewed Rural Transport

Strategy produced and submitted to EXCO.

No Deviation. None


100

Strategic Objective 3.2: Provide quality rural public and scholar transport

Objective Statement: To improve the management of scholar transport and ensure provision of quality public transport in rural areas

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

March 2016 EXCO for

approval

Integrated Public

Transport

Network (IPTN)

plans developed

in two (2) district

municipalities

(Bojanala

Platinum DM and

Sekhukhune DM)

by March 2015

Draft operational

plans developed

for two district

municipalities

(Bojanala

Platinum DM and

Sekhukhune DM)

Consultations with Sekhukhune District

Municipality and Bojanala Platinum District

Municipality were conducted in April 2014.

The MoA was signed with Bojanala

Platinum District Municipality and the first

draft of the Integrated Public Transport

Network Plan was developed.

The development of the IPTN plan for the

Sekhukhune District Municipality was withdrawn

due to a request by the District Municipality for an

assurance from National Treasury to fund the

implementation of the project beyond the planning

phase.

None

Strategic Objective 4.1: Promote sustainable public transport

Objective Statement: To facilitate and promote the provision of sustainable public transport, through the use of safe and compliant vehicles and

developing empowerment systems for the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS


101

Strategic Objective 4.1: Promote sustainable public transport

Objective Statement: To facilitate and promote the provision of sustainable public transport, through the use of safe and compliant vehicles and

developing empowerment systems for the sector

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Public Transport

Stakeholder

Relations

Framework

developed by

March 2015

Develop draft

Public Transport

Stakeholder

Relations

Framework

Consultations were conducted with

Provinces and the draft Public Transport

Stakeholder Relations Framework was

developed.

No Deviation. None

Number of Old

Taxi Vehicles

(OTVs) scrapped

annually in line

with the Taxi

Recapitalisation

Programme

(TRP)

7 500 old taxi

vehicles scrapped

4 049 Old Taxi Vehicles were scrapped. Demand driven target based on applications from

operators.

The Taxi

Recapitalisation

Programme will

be reviewed

within the

Medium Term

Strategic

Framework.

Public Transport

Cooperative

Model developed

by March 2015

Public Transport

Cooperative

Model submitted

to EXCO for

approval

A benchmarking exercise and status quo

analysis were conducted.

The Cooperative Model for Public Transport

in South Africa was finalised and submitted

to EXCO on the 9th March 2015.

No Deviation. None


102

Strategic Objective 4.2: Improve public transport access and reliability

Objective Statement: To facilitate the development and implementation of Integrated Public Transport Networks (IPTNs) in identified

municipalities

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Integrated Public

Transport

Networks (IPTNs)

developed in

thirteen (13)

municipalities by

March 2019

Construction of

Integrated Public

Transport

Networks

monitored at

thirteen (13)

municipalities

Construction is in progress in 11

municipalities. Construction has not

commenced in 2 municipalities.

Buffalo City: Due to legal processes.

Mangaung: Still completing their planning

phase.

No Deviation. None


Objective Statement: To ensure creation of job opportunities through training and placement of interns

PERFORMANCE

INDICATOR

2014/15

ANNUAL

TARGET


TARGET


MEASURE &

ADDITIONAL

COMMENTS

Number of interns

trained and

placed in

municipalities

annually

9 interns placed

and trained in

selected

municipalities

9 interns were selected and placed in

municipalities.

No Deviation. None


For all demand-driven targets, projected targets over the MTEF will be based on performance trends of previous financial years.


103


The annual target for scrapping of Old Taxi Vehicles (OTVs) was revised to 4 000 during the financial year due to low uptake by the industry. The revision

was approved by the Minister.

The development of the Integrated Public Transport Network (IPTN) plan for the Sekhukhune District Municipality was withdrawn due to a request by the

District Municipality for an assurance from National Treasury to fund the implementation of the project beyond the planning phase. The revision of the

target was approved by the Minister.


104



Sub- Programme Name

2014/15 2013/14




R’000 R’000 R’000 R’000 R’000 R’000

7.1: Public Transport Regulation 13,970 13,970 - 16,931 12,930 4,001 7.2: Rural and Scholar Transport 13,743 13,744 (1) 10,930 7,216 3,714 7.3: Public Transport Industry

Development 118,350 118,362 (12) 111,679 111,678 1 7.4: Public Transport Oversight 11,022,062 11,021,155 907 10,350,786 10,350,785 1 7.5: Public Transport Administration

Support 21,826 21,826 - 19,525 18,669 856 7.6: Public Transport Network

Development 6,620 6,620 - 4,339 4,338 1

11,196,571 11,195,677 894 10,514,190 10,505,616 8,574


105

5. TRANSFER PAYMENTS

5.1. Transfer payments to public entities

Public entities receive sizeable transfer payments from government and are often the front-line providers of

services on behalf of government. It is therefore important to understand the impact of these services on the

community. Departments are requested to provide information on the services provided by these public

entities, transfer payments to the public entities, the actual amount spent from the transfer received by the

public entities, strategic achievements of the public entity. Departments must also comment on monthly

monitoring systems or the lack thereof to monitor spending on such transfer payments. If such monitoring

did take place, departments must provide details of difficulties experienced and what steps (if any) were

taken to rectify such difficulties.

Name of Public Entity

Services rendered by the public

entity

Amount transferred to the public entity

R’000

Amount spent by the public entity

R’000

Achievements of the public entity

Airports Company South Africa (ACSA)

Maintenance and upgrading of airports infrastructure and enhancing of related operations

No transfer from the Department of Transport

- Job opportunities created 22 063 (FY2014 – 20 977) Employment Equity Index as per BBBEE Code 14.06 [out of 15] (FY2014 – 13.77) Employee Satisfaction Survey 3.73 [out of 5] (FY2014 – 3.60) On time departures 89% (FY2014 – 88%) Skytrax Airport Awards – Best Airports in Africa: 1st OR Tambo, 2nd Cape Town and 3rd King Shaka International Airports. Air Cargo Africa 2015 African Airport of the Year Award – OR Tambo International Airport. Business Awards

SA Top Employer Certification

Chartered Secretaries Integrated Reporting Awards – Winner in the category State Owned Companies

Environmental Awards- BirdLife


106



entity


R’000


R’000


South Africa Owl Awards – long term involvement promoting a healthy environment and sustainable conservation

Air Traffic and Navigation Services (ATNS)

Provision of air traffic management solutions and associated services


- ATNS achieved BBB-EE level 2 from level 5 with an investment of R5.4 million of Small & Medium Enterprise. ATNS has been retained again as the preferred supplier of the SADC VSAT and NAFISAT communication network in Africa for the next 7 years

Cross-Border Road Transport Agency (C-BRTA)

Regulation of cross border road transport freight and passenger industry


- The Agency managed

to conduct 220 273

inspections;

• Issued a total of 78

884 permits;

• A market access

report template was

developed to

operationalise the

findings of the Market

Access Regulation

(MAR) study by

providing the

Regulatory

Committee members

with sufficient

information on the

number of valid

permits in the market

to make informed

decisions on market

demand and supply

per route;

• A number of

stakeholder

consultations for the

Operator Compliance

Accreditation scheme

(OCAS) were

conducted and the

Business Rules and

Standards approved

at the end of financial

year;

• A 63% client


107



entity


R’000


R’000


satisfaction level was

achieved on the

survey that was

conducted by the

Agency; and

• Two (2) cooperatives were established by the Agency so as to empower women, youth and people with disabilities.

Road Accident Fund (RAF)

Compensation of users of SA roads for loss of damage caused by negligent driving of motor vehicles within the borders of SA


- 183 933 claims worth R21,466 billion were paid. In addition, 9,628 claims with the value of R6,7 billion were finalised but could not be paid due to the lack of funds. The RAF’s flagship marketing programme “ RAF On The Road” took RAF services to 27 880 Claimants in disadvantaged communities countrywide. The previlance of direct claims continues to increase. 30% of the new claims were direct claims

Road Traffic Infringement Agency (RTIA)

Facilitation of adjudication of traffic infringements

11, 475 11,475 99.63% representations adjudicated. Total of 132 962 representations adjudicated.

R307m revenue

collected against

R240m annual

target.

100% valid Enforcement orders served (Total of 556 775 Enforcement orders were served)

Strategic

partnerships

established with the

following entities:

RTMC, RAF,


108



entity


R’000


R’000


SAPO, Autopax,

NICSA and

SAVRALA. (Other

strategic

partnerships

established include:

MUARC, BACSA,

TETA, HWESTA,

UNRSC and

Interfaith

Movement)

28 public

awareness

campaigns and

community

outreach

programmes

conducted against

annual target of 22

public awareness

campaigns and

community

outreach

programmes

A Traffic

Rehabilitation

Schools model has

been completed as

per set target

Infrastructure

support

programmes

implemented

Concept document

on Youth Enterprise

Development

Programme

developed

AARTO Monitoring and Evaluation Framework with the monitoring tool developed and piloted.

International Benchmarking Report completed, submitted and presented to the Minister


109



entity


R’000


R’000


A resource centre with online service capabilities to enable access to CSIR library materials has been set up.

A call centre with 10 call centre agents is in place and operational.

Road Traffic Management Corporation (RTMC)

Road traffic management through coordination of traffic law enforcement and road safety interventions

259,481 259,481 The Corporation

conducted 5 flagship

programmes namely:

Roll out of six

JTCCs in three

provinces

National Road

Safety School

Debates

Participatory

Education

Technique(P.E.T)

International Driver

of the year

Completion

Safe Kids Walk this

Way

1. The corporation

managed to reach

rural schools by

conducting 1 444

road safety

presentations.

2. RTMC developed

31 educational

products that are

conceptualised to

enhance the

intended message

for road safety.

3. Six youth

programmes and

five women

programmes were

conducted by the

corporation in the

2014/15 financial

year

4. Learner Licence

programme which

enrolled 47 schools


110



entity


R’000


R’000


in previously

disadvantaged

areas

5. Appointment of

Divisional Head:

Road Safety

Law enforcement

achievements:

The corporation

was central to road

safety operations in

the country with the

entity unfolding a

coordinate road

safety approach

involving provinces,

municipal police,

traffic authorities,

SAPS, transport

entities and Military

police with the

intention of

amplifying efforts to

ensure heightened

impact and reach.

RTMC

spearheaded the

road safety festive

launch in Harrismith

on the 28th of

November 2014

where they

conducted law

enforcement

operations and

exhibited their

service offering by

education and

creating awareness

on road safety.

Up skill Training for

traffic officers which

took place from the

25th of October to

the 14th of

December 2014

The corporation

identified several

law enforcement

interventions for the

different provinces

and integrated and


111



entity


R’000


R’000


coordinated law

enforcement

intervention to

ensure unity and

maximise impact in

dealing with the

carnage on the

road. In this regard

1,355,948 vehicles

were stopped and

checked and 133

high impact

operations

conducted.

The corporation as

a lead agency in

road safety

together with other

authorities

successfully held a

heightened Easter

campaign in

Mpumalanga;

Bushbuckridge on

the 27th of March

2015. The

corporation filled a

strategic position of

Executive: Law

Enforcement in the

2014/15 financial

year.

The corporation further implemented five Corporate Social Investment programmes to give back to our community.

Rail Safety Regulator (RSR)

Oversight and promotion of railway safety

51,504 51,504 Conducted 133 Inspections, 92 audits and 34 investigations Conducted 19 Education Awareness Campaigns on safety and 12 Profiling campaigns Hosted the Railway Safety Conference Implemented 11 Co-operative Agreements


112



entity


R’000


R’000


with external parties.

Passenger Rail Agency of South Africa (PRASA)

Provision of commuter rail solutions

14,946,301 12,019,040 PRASA have managed to transport 519 560 000 paying passengers based on tickets purchased per annum in 2014/15 financial year (516 010 000 passengers for Metroral, 840 000 passengers for MLPS and 2 710 000 pasengers for Autopax).

Ports Regulator (PR) of South Africa

Regulation of ports industry activities in accordance with applicable policy and legislation

16,852 16,852 PR has successfully completed a Medium term Tariff Methodology and the tariff strategy was published by March 2015. Tarff strategy for SA Port Systems is in place to determine tafiffs for services and facilities offered by the Transnet National Ports Authority (TNPA), mainly to support TNPA infrastructure programme. Report published on the Annual Global Tariff Comparator Study for at least 5 commodity types, i.e. coal, iron ore, automotives, liquid bulk and containers. This study sought to benchmark SA port prices againts its global peers and to ensure that SA ports remain (are) competitive and at standard global port efficiency levels BBBEE status review of all s56 and s57 port facilities and service providers for all SA (commercial) ports, compliance findings report published by 31 March 2015.

South African Civil

Promotion, regulation and

19,239 19,239 Aircraft accidents and incidents have been


113



entity


R’000


R’000


Aviation Authority (SACAA)

enforcement of civil aviation safety and security standards

investigated and reports with safety recommendations have been released. There is a decrease in the number of accidents and fatalities during the reporting period. The number of accident decreased by 17% and the number of fatalities decreased by 41%. This decrease is as a result of the interventions introduced by the Cross Functional Accident Reduction Prevention Plan as well as many other promotional campaigns that the Regulator initiated during the reporting period such as the Hello Winter/Summer campaign and the Safety First campaign championed jointly by the industry and the Regulator. The SACAA was at the forefront of the successful delivery of the International Civil Aviation Day 2014 which took place in Kimberly, Northern Cape. The event attracted learners from 50 schools from various districts in the province and exposed the Kimberly and surrounding community to an air show.

South African Maritime Safety Authority (SAMSA)

Promotion, regulation and enforcement of maritime transport safety and security standards

6,887 6,887 During the year 2014/15, the MRCC responded to 504 alerts. 164 lives were saved due to the coordination actions of the MRCC The MRCC assisted with 76 medical advice incidents and coordinated the


114



entity


R’000


R’000


evacuation of 59 crew/passengers from vessels offshore to local hospitals The MRCC maintains a beacon registration database with ± 5751 beacons The MRCC passed on 12609 pre arrival messages from ships to the Maritime Security Coordination Centre (MSCC) The MRCC handled 227 Maritime Assistance (MAS) Service incidents the period.

South African National Roads Agency Limited (SANRAL)

Maintenance, upgrading and expansion of national road network

11,916,947 11,916,947 100% national road network maintained

All targets on road condition indices have been met

Remedial measures determined for 18 pedestrian locations

19 820 jobs created on SANRAL projects

368 scholarships awarded

105 external bursaries awarded

5.2. Transfer payments to all organisations other than public entities

This section provides information on transfer payments made to provinces, municipalities, departmental

agencies (excl. public entities), higher education institutions, public corporations, private enterprises, foreign

governments, non-profit institutions and households. This excludes payments to public entities as it is

included in the previous section. In this section also provide information on where funds were budgeted to

be transferred but transfers were not made and the reasons for not transferring funds.

Departments are requested to provide the name of the transferee, the purpose for which these funds were

transferred, did the department comply with S38 1(j), the amount transferred, the amount spent from the

transfer received by the transferee, (excluding individuals or social grant payments) and the reasons for

unspent funds by the transferee. Departments must also comment on monthly monitoring systems or the


115

lack thereof to monitor spending on such transfers. If such monitoring did take place, departments must

provide details of difficulties experienced and what steps (if any) were taken to rectify such difficulties.

The table below reflects the transfer payments made for the period 1 April 2014 to 31 March 2015

Name of transferee Type of

organisation

Purpose for which the

funds were used

Did the dept. comply with s 38 (1) (j) of

the PFMA

Amount transferred

(R’000)

Amount spent by the

entity (R’000)

Reasons for the funds

unspent by the entity

University of Stellenbosch

University Capacity development

3,597 3,597 -

North West University University 1,496 1,496 -

Tshwane University of Technology

University 487 487 -

University of Johannesburg

University 1,210 1,210 -

University of South Africa

University 720 720 -

COSPAS / SARSAT International organisation

Membership fees

Did not submit certificate

401 401 -

International Civil Aviation Organisation

International organisation


3,690 3,690 -

Indian Ocean Memorandum of Understanding


Yes R292 R292 -

International Maritime Organisation


Yes 1 324 1 324 -

African Civil Aviation Commission



3,915 3,915 -

National Sea Rescue Institute

Non Profit Institution

Search and rescue

Certificate submitted

2,000 2,000 -

Off Road Rescue Unit Non Profit Institution


77 77 -

The Mountain Club of South Africa



77 77 -

National Emergency Communications Division of the South African Radio League



77 77 -

K9 Search and Rescue Association



77 77 -

SANTACO Non Profit Institution

Taxi Council Administration

Yes 17,500 17,500 -

Taxi Scrapping Agency Household Scrapping of Old Taxi Vehicles

Yes 300,063 300,063 -

Leave gratuity Households Leave pay 591

Gifts and donations Households Gifts 105

George Municipality Public Transport Infrastructure

N/A 70,308 18,111 The municipal financial

Polokwane Municipality N/A 200,000 72,745


116


organisation


funds were used


the PFMA

Amount transferred

(R’000)

Amount spent by the

entity (R’000)



Nelson Mandela Bay Municipality Grant (PTIG) N/A 167,500 117,257 year starts (July) and ends (June) 3 months later than the national financial year hence a 3 months’ time-lag.

City of Cape Town Metropolitan

Municipality N/A 1,069,140 403,034

City of Johannesburg Municipality N/A 553,571 531,936

City of Tshwane Municipality N/A 867,571 699,189

Ekurhuleni Metropolitan Municipality N/A 250,000 103,857

Ethekwini Municipality N/A 654,751 120,573

Mangaung Metropolitan Municipality N/A 30,000 -

Mbombela Municipality Municipality N/A 195,191 72,312

Msunduzi Municipality N/A 100,000 40,884

Alfred Nzo Municipality Rural road asset management

N/a 2,104 969

Amajuba Municipality N/a 2,020 1,572

Amatole Municipality N/a 2,708 1,905

Bojanala Platinum Municipality N/a 3,264 1,067

Cacadu Municipality N/a 2,110 1,265

Capricorn Municipality N/a 2,184 1,042

Central Karoo Municipality N/a 1,497 -

Chris Hani Municipality N/a 2,979 1,525

Dr Kenneth Kaunda Municipality N/a 1,801 300

Dr Ruth Segomotsi Mompati

Municipality N/a 4,172 1,062

Ehlanzeni Municipality N/a 1,843 1,127

Fezile Dabi Municipality N/a 1,709 164

Gert Sibande Municipality N/a 2,063 887

iLembe Municipality N/a 2,120 784

John Taolo Gaetwewe Municipality N/a 1,725 1,093

Lejweleputswa Municipality N/a 1,775 1,281

Mopani Municipality N/a 1,995 1,075

Ngaka Modiri Molema Municipality N/a 2,775 743

Nkangala Municipality N/a 1,950 922

OR Tambo Municipality N/a 2,686 454

Sekhukhune Municipality N/a 2,063 -

Sisonke/Harry Gwala Municipality N/a 2,044 1,111

Thabo Mofutsanyana Municipality N/a 1,885 780

Ugu Municipality N/a 2,430 1,653

Ukhahlamba / Joe Gqabi

Municipality N/a 2,084 924


117


organisation


funds were used


the PFMA

Amount transferred

(R’000)

Amount spent by the

entity (R’000)



uMgungundlovu Municipality N/a 2,303 799

Umkhanyakude Municipality N/a 2,440 205

Umzinyathi Municipality N/a 2,128 1,435

Uthukela Municipality N/a 2,315 1,325

uThungulu Municipality N/a 2,305 1,048

Vhembe Municipality N/a 1,948 1,214

Waterberg Municipality N/a 1,779 1,353

Xhariep Municipality N/a 1,852 1,339

Zululand Municipality N/a 2,167 858

KwaZulu-Natal Province Coal Haulage grant

N/a 63,000 63,000 -

Mpumalanga Province N/a 740,002 740,002 -

Eastern Cape Province Disaster management grant

N/a 155,457 155,457 -

Free State Province N/a 33,282 40,633 -

Gauteng Province N/a 1,431 1,431 -

KwaZulu-Natal Province N/a 52,194 52,194 -

Limpopo Province N/a 79,613 82,901 -

Mpumalanga Province N/a 76,310 76,310 -

Northern Cape Province N/a 93,204 93,204 -

North West Province N/a 8,073 8,155 -

Western Cape Province N/a 86,948 86,948 -

Eastern Cape Provincial Road Maintenance Grant

N/a 1,123,083 1,019,834 -

Free State N/a 992,400 1,211,596 -

Gauteng N/a 513,472 513,459 -

KwaZulu-Natal N/a 1,672,964 1,672,964 -

Limpopo N/a 1,047,697 1,090,960 -

Mpumalanga N/a 778,528 778,527 -

Northern Cape N/a 547,268 547,268 -

North West N/a 681,932 688,855 -

Western Cape N/a 598,901 598,901 -

Eastern Cape Public Transport Operations Grant

N/a 195,282 195,277 -

Free State N/a 215,900 215,774 -

Gauteng N/a 1,819,854 1,786,648 -

KwaZulu-Natal N/a 904,783 984,952 -

Limpopo N/a 291,852 289,643 -

Mpumalanga N/a 491,418 490,061 -

Northern Cape N/a 43,937 40,273 -

North West N/a 90,318 89,315 -

Western Cape N/a 779,365 779,365 -


118

The table below reflects the transfer payments which were budgeted for in the period 1 April 2014 to 31 March 2015, but no transfer payments were made.

Name of transferee


funds were to be used

Amount budgeted for

Amount transferred Reasons why funds were not

transferred

(R’000) (R’000)

University of Kwa-Zulu Natal

Capacity development

3,281 - The university discontinued its administration of these funds

International Maritime Organisation

Membership fees

1,324 496 Foreign membership fees was budgeted but not claimed during the year.

SANTACO Taxi operations 18,407 17,500 Transfer payment not claimed

Taxi Scrapping Agency (TSA)

Scrapping of Old Taxi Vehicles

423,604 300,063 Transfer payment not claimed

Road Traffic Infringements Agency

Traffic infringements

15,300 11,475 Transfer payment claimed late

Public Sector SETA Training 173 - Due to an instruction from National Treasury not to disburse the amount.

6. CONDITIONAL GRANTS

6.1. Conditional grants and earmarked funds paid

The table below describes each of the conditional grants and earmarked funds paid by the

department from the 1st April 2014 to 31st March 2015.

Conditional Grant 1: Public Transport Operating Grant (PTOG)

Department to whom the grant has been transferred

Provincial Departments of Transport: East Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West and Western Cape Purpose of the grant To provide supplementary funding towards public transport services provided by provincial departments of transport

Expected outputs of the grant The provision of public transport services in terms of contracts which are kilometre based and affordable to the users of services.

Actual outputs achieved Subsidy per trip operated Subsidy per kilometre operated Subsidy per passenger Subsidy per vehicle Number of vehicles subsidised Number of cumulative annual vehicles subsidised Number of scheduled trips Number of trips operated Passengers per kilometre operated Passengers per trip operated Employees per vehicle

Amount per amended DORA


119

Amount transferred (R’000)

4,832,709 Eastern Cape 195, 282 Free State 215, 900 Gauteng 1,819, 854 KwaZulu Natal 904, 783 Limpopo 291, 852 Mpumalanga 491, 418 Northern Cape 43, 937 North West 90, 318 Western Cape 779, 365

Reasons if amount as per DORA not transferred

None

Amount spent by the department/ municipality (R’000)

4,871, 308 Eastern Cape 195, 277 Free State 215, 774 Gauteng 1,786, 648 KwaZulu Natal 984, 952 Limpopo 289, 643 Mpumalanga 490, 061 Northern Cape 40, 273 North West 89, 315 Western Cape 779, 365

Reasons for the funds unspent by the entity

Monitoring mechanism by the transferring department

The provincial spending was monitored through the monthly and quarterly reports submitted by provincial departments, Provinces given opportunity to verify and provide confirmation regarding the spending.

Conditional Grant 2: Provincial Roads Maintenance Grant (PRMG)

Department to whom the

grant has been transferred

Provincial Departments of Transport: East Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West and Western Cape

Purpose of the grant To supplement provincial investments for preventative, routine and emergency maintenance and road rehabilitation of provincial road networks, To ensure all roads are classified as per RISFSA and the Road Classification and Access Management (RCAM) guidelines To implement and maintain road asset management systems To supplement provincial projects for the repair of roads and bridges damaged by declared natural disasters To improve the state of the road network serving electricity generation infrastructure To construct rural pedestrian access bridges

Expected outputs of the grant Number of lane-km of surfaced roads rehabilitated – 1 100 lane/km Number of square meters of surfaced roads resealed – 3 000 lane/km Number of kilometres of gravel roads re-gravelled - 3 000km Number of square meters of blacktop patching (including pothole repairs) - 810 000m2 Number of kilometres of gravel roads bladed - 350 000km Submission of updated road condition data/report by 29 August 2014 Number of Work Opportunities – 212 662 Number of FTE – 60 100


120

Actual outputs achieved Number of lane-km of surfaced roads rehabilitated – 1142 lane-km Number of square meters of surfaced roads resealed – 7 905 019.8 m2 which translate to 2 258.58 lane-km using 3.5m as lane width Number of kilometres of gravel roads re-gravelled – 4 068 km Number of square meters of blacktop patching (including pothole repairs) - 1 929 757m2 Number of kilometres of gravel roads bladed - 326 175.2 km All provinces submitted latest road condition data and department busy verifying. Number of Work Opportunities – 170 065 Number of FTE – 55 456

Amount per amended DORA No adjustment were made during the 2014/15 financial year

Amount transferred (R’000) 9,361 , 498 was transferred

Reasons if amount as per

DORA not transferred

N/A

Amount spent by the

department/ municipality

(R’000)

9,052 , 000 was spent by provinces 97%



Delayed procurement of services

Monitoring mechanism by the

transferring department

PMU unit was utilised for monthly and quarterly monitoring of activities in the province. Site visits are arranged with all provinces where a selection of provinces in the provinces was attended.

The main reason for deviation of set target are :

Target setting – Quarterly Performance Report targets are set on incremental basis not on project

type selection. This leads to unrealistic target setting. Processes must be aligned with the

budgeting process and project lists are only finalised after budgets are confirmed during

February/March

The delay in procurement of services leads to non-achievement of set targets

More pothole defects found leading in focus on paved roads

Outputs of multi-year projects only realised in the outer years

There are no clear guidelines to review targets as there can be factors influencing performance

but target remains the same though conditions change especially on work opportunities and Full

Time Equivalents (FTE).

Conditional Grant 3: Rural Roads Asset Management Systems Grant (RRAMSG)

Municipality to whom the grant has been transferred

Alfred Nzo

Chris Hani

OR Tambo

Cacadu Amathole Joe Gqabi

Xhariep Fezile Dabi

Purpose of the grant

To assist rural district municipalities to set up rural RAMS, and collect road and traffic data on municipal road networks in line with the Road Infrastructure Strategic Framework for South Africa (RISFSA)


121

Expected outputs of the grant

• Road inventory data • Condition assessment, traffic data and rural access bridges • Pavement and bridge management systems compatible with national standards

Actual outputs achieved

90% paved roads, 96% unpaved roads, 100% structures inspections and 100% traffic counts assessed






100%paved roads, 100% unpaved roads, 100% structures inspections and 93% traffic counts assessed

Outputs unknown due to non-submission of quarterly evaluation reports.

Amount per amended DORA(R'000)

2,104 2,979 2,687 2,110 2,707 2,083 1,85 1,709

Amount transferred (R'000)

2,104 2,979 2,687 2,110 2,707 2,083 1,85 1,709


N/A N/A N/A N/A N/A N/A N/A N/A

Amount spent by the department/ municipality (R'000)

969 1,525 453 1,265 1,905 924 1,339 164


• Monthly financial performance review. • Bi-monthly progress meetings with receiving officers. • Quarterly financial and non-financial performance review. • Annual financial and non-financial performance review. • Annual RRAMS Grant Workshop.


Letshweleputswa

Thabo Mofutsanyana

Uthukela

uMgungundlovu

Zululand Amajuba

Ilembe Harry Gwala




122






Paved: 97 Unpaved:24 Structure: 0 Traffic Counts:90

Paved: 100 Unpaved: 71 Structure: 0 Traffic Counts: 73

Paved: 40 Unpaved:15 Structure:96 Traffic Counts:100


Paved:100 Unpaved:100 Structure: 0 Traffic Counts:100

Paved:100 Unpaved:100 Structure: 0 Traffic Counts:100

Amount per amended DORA (R'000)

1,775 1,885 2,315 2,303 2,167 2,021 2,120 2,044


1,775 1,885 2,315 2,303 2,167 2,021 2,120 2,044


N/A N/A NA NA NA NA NA NA


1,281 780 1,325 799 858 1,572 784 1,111




Ugu Uthungulu

Umkhanyakude

Umzinyathi Vhembe Mopani Waterberg

Sekhukhune




123









Paved: 100 Unpaved:100 Structure: 0 Traffic Counts: 0




2,430 2,305 2,440 2,128 1,948 1,995 1,779 2,063


2,430 2,305 2,440 2,128 1,948 1,995 1,779 2,063


N/A N/A N/A N/A N/A N/A N/A N/A


1,653 1,048 205 1,435 1,214 1,075 1,353 0




Capricorn

Ehlanzeni

Gert Sibande

Nkangala

John Taolo

Bojanala Dr Ruth Segomotsi

Ngaka Modiri Molema

Dr Kenneth Kaunda






124


Paved: 100 Unpaved: 100 Structure: 30 Traffic Counts:90



Paved: 61 Unpaved:9 Structure: 100 Traffic Counts : 0




Paved:1 7 Unpaved: 6 Structure: 0 Traffic Counts: 0

Paved: 7 Unpaved: 0 Structure: 30 Traffic Counts:0


2,184 1,843 2,063 1,950 1,725 3,264 4,172 2,775 1,801


2,184 1,843 2,063 1,950 1,725 3,264 4,172 2,775 1,801


N/A N/A N/A N/A N/A N/A N/A N/A N/A


1,042 1,122 887 922 1,093 1,067 1,062 743 300


•Monthly financial performance review. • Bi-monthly progress meetings with receiving officers. • Quarterly financial and non-financial performance review. • Annual financial and non-financial performance review. • Annual RRAMS Grant Workshop.


Central Karoo






0

Amount per amended DORA

1,497


125


1,497


N/A


0


FY still underway


•Monthly financial performance review. •Bi-monthly progress meetings with receiving officers. •Quarterly financial and non-financial performance review. •Annual financial and non-financial performance review. •Annual RRAMS Grant Workshop.

Conditional Grant 4:Public Transport Network Operations Grant (PTNOG)


Nelson Mandela Bay, City of Joburg, City of Tshwane, Ethekwini, City of Cape Town,George

Purpose of the grant To provide operational funding to support the planning, regulation, control and management of municipal public transport networks and services.

Expected outputs of the grant Number of average weekday passenger trips carried on Public Transport Network Operations Grant (PTNOG) funded systems.

Actual outputs achieved Cape Town, Jo’burg, Tshwane and George municipalities at full operation mode in respect of at least the initial phases of the transport network.

Amount per amended DORA (R’000)

1, 192, 814

Amount transferred (R’000) 1, 192, 814


N/A

Total amount spent by PTNOG Receiving Officers (municipalities) (R’000)

397, 053


The municipal financial year starts (July) and ends (June) 3 months later than the national financial year hence a 3 months’ time-lag.


126


Disburse PTNOG funds and monitor PTNOG expenditure. Monitor IRPTN/IPTN implementation progress in line with the NLTA and the PTS.

Verify reports from municipalities by conducting at least one site visit per annum.

Allocate the funds based on stated priorities through an allocation mechanism agreed to by the NDoT and National Treasury. Evaluate the performance of the grant annually.

Conditional Grant 5: Public Transport Infrastructure Grant (PTIG)


Nelson Mandela Bay, Mangaung, Ekurhuleni,City of Joburg, City of Tshwane, Ethekwini, Msunduzi, Polokwane, Mbombela, Rustenburg,City of Cape Town, George

Purpose of the grant To provide for accelerated planning, construction and improvement of public and non-motorised transport infrastructure.

Expected outputs of the grant Public transport infrastructure including the development, and upgrading of bus lanes, routes, stations, depots, control centres and related information technology, fare systems and vehicle purchases subject to Department of Transport (DoT) approval Non-Motorised Transport (NMT) infrastructure that supports network integration (e.g. sidewalks, cycle ways, cycle storage at stations) Plans related to the above including: network operational plans including universal design access plans business and financial plans (including financial modelling, economic evaluation, and operator transition plan) institutional network management plan engineering and architectural preliminary and detailed designs public transport vehicle and technology plans marketing and communication plans

Actual outputs achieved Cape Town, Jo’burg, Tshwane, George have complete and operational first stages for network infrastructure and still in the process to rollout next stages of the network infrastructure. Whilst eThekwini, Ekurhuleni, Nelson Mandela Bay, Rustenburg, Mbombela, Polokwane are implementing the initial stages of the network infrastructure.

Amount per amended DORA (R’000)

4, 678, 032

Amount transferred (R’000) 4, 678, 032


N/A

Total amount spent by the PTIG Receiving Officers (R’000)

2, 175, 453

Reasons for the funds unspent by the PTIG Receiving Officers (municipalities)

The municipal financial year starts (July) and ends (June) 3 months later than the national financial year hence a 3 months’ time-lag.


127


Disburse PTIG funds and monitor PTIG expenditure. Monitor IRPTN/IPTN implementation progress in line with the NLTA and the PTS. Verify reports from municipalities by conducting at least one site visit per annum. Allocate the funds based on stated priorities through an allocation mechanism agreed to by the NDoT and National Treasury. Evaluate the performance of the grant annually.


128

7. DONOR FUNDS

7.1. Donor Funds Received

Donor Fund: TETA Contract No. TETA14/RF/DG030

Name of donor Transport Education and Training Authority

Full amount of the funding R 2,430, 000.00

Period of the commitment 30 April 2014 to 31 March 2016

Purpose of the funding Sponsored 45 interns for workplace experience

Expected outputs Graduates with work-place experience ready for the labour

market

Actual outputs achieved 21 interns got contract and permanent appointment within and

outside the Department of Transport

Amount received in current period (R’000) 729

Amount spent by the department (R’000) 729

Reasons for the funds unspent N/A

Monitoring mechanism by the donor Qurterly monitoring reports, Site visits and compliance

with the disbursement requirements in line with the

contract

The department received a number of sponsorships in kind, which are detailed in the table below:

Name of sponsor Amount (R'000) Purpose

U.S. Trade and Development Agency 88 Five-day training program including a three-day course at Embry-Riddle Aeronautical University and additional programs at Orlando International, the Orlando International FAA air traffic control tower and Orlando Sanford International Airport. Included meals and accommodation for two employees

African Union Commission 27 Sponsored an employee's air ticket, accommodation and allowance for a Meeting of Experts to Review the Regulatory Framework for the Implementation of the Yamoussoukro Decision in Addis Ababa, Ethiopia.

Ford South Africa 73 Inauguration: Tourneo Mini Busses

Audi South Africa 137 Inauguration: A8 Security Vehicle + 5 Luxury Vehicles

Mahindra 50 Inauguration: 5x SUV/ MPV seven seater

Hyundai SA 27 Inauguration: Various vehicles (Mini bus and support)

Nissan SA 99 Inauguration: 10 x Nissan Infinity Luxury Vehicles + 3 Mini Buses


129

Name of sponsor Amount (R'000) Purpose

BMW SA 2,630 Inauguration: 150 Vehicles (3,5 and 7 Series)

Passenger Rail Agency of South Africa 1,984 Inauguration: Provision of 30x 60 Seater buses

Phakisa 1 Christmas gifts chocolates, note pads

Deutsche Gesellshaft Fuer Internationale Zusammenarbeit (GiZ)

9 Sponsored accommodation for two officials to attend training on Quantifying Urban Transport Greenhouse Gas Emissions

Smit Amandla 35 Gala Dinner at World Maritime Day celebration

International Labour Organisation 52 Sponsored air travel and subsistence for an official to attend a meeting of experts on Maritime Occupational Safety and Health


39 Sponsored traveling and accommodation for an official to attend a transport exchange mission to build capacity in chemicals management and climate change

International Maritime Safety and Environment Academy

56 Sponsored tuition fees and accommodation for two officials to attend a course on the ISPS Code Implementation

International Centre for Alcohol Policies 11 Sponsored traveling costs for an official to attend an Africa Union Road Safety Status meeting

Audi South Africa 5 Test driving of Audi vehicles at the Annual Transport Awards

Air Mercy Services (AMS) 70 Sponsored a Hangar for Career Exhibitions during the celebration of the International Civil Aviation Day at Kimberly Airport

SA-USA Aviation Trade Forum 52 Sponsored accommodation for 13 officials to attend the Forum

Air Traffic and Navigation Services Company Ltd.

3 Sponsored the cost of accommodation for the first Kwa-Zulu Natal Regional Airport Awareness Workshop

Total 5,448

8. CAPITAL INVESTMENT

8.1. Capital investment, maintenance and asset management plan

Assets of the department comprises of furniture and fittings, office equipment and computer equipment. Assets are replaced when they are no longer useful or when they become technologically outdated.

All assets have been captured in the asset register. A proper fixed asset register was established

during 2004/05, and an asset management unit was established within the Supply Chain

Management component of the department during that year. The department complied with the

minimum requirements of the asset management reforms since 2004/05.


130

PART C: GOVERNANCE


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1. INTRODUCTION

The Department of Transport is committed to maintaining the highest standards of governance to

ensure that public finances and resources are managed economically, effectively and efficiently.

Good governance structures have been put in place to utilise state resources in a responsible way.

Assessments have been conducted in areas where control measures are lacking or still need to be

established, or improved. Where a lack of capacity has been identified to improve services, new posts

have been created on the department’s establishment in the specific units.

2. RISK MANAGEMENT

A departmental risk register for strategic and operational risks was compiled for the financial year

2014/15. The register highlighted a number of risk areas within the various branches in the

department. A risk management plan, which identified key controls and mitigation strategies, was also

developed and implemented.

Risks assessments were conducted on a quarterly basis to ascertain the effectiveness of mitigation

plans and to identify the emergence of new or secondary risks. The Risk Management and Security

Committee held its meetings on a quarterly basis accordingly and risk management was incorporated

into the performance management practices of the Department. Risk management was a standing

item in Executive Committee meetings and the department reported quarterly to the Audit Committee

on risk management issues.

3. FRAUD AND CORRUPTION

The Department’s Fraud Prevention Plan and Strategy is premised on the following four (4)

conventional pillars, namely:

Fraud Prevention. This is in recognition of the fundamental reality that “Prevention is better

than cure”. In addition to actively promoting an anti-fraud environment through hosting “Fraud

Awareness” workshops and promoting a “whistleblowing” culture, the Department also relies on

Internal Controls, Risk Management, screening and vetting of prospective employees and

Consultants etc. in this regard. The right “Tone at the Top” is still evolving;

Fraud Detection. In recognition that irrespective of attempts geared at creating an anti-fraud

environment as referred to above, the Department recognises that fraud and corruption might still

manifest and hence the need to detect these once they occur. Our primary detection “tool” are the

employees in our Department as they more often than not witness these crimes when committed.

In other instances, Internal Audit serves as a detection tool in that they cover suspicious

fraudulent transactions, which they refer to Forensic Investigation. The focus is therefore placed

on training employees on both the common law crimes of fraud as well as on the Prevention and

Combating of Corrupt Activities Act etc.

In addition, the Department has acquired Audit Command Language (ACL) software so as to

proactively conduct data interrogation and analysis.

Fraud Response. The Department has made strides during this Financial Year and flowing

from investigations into different acts of misconduct, an Executive Manager tendered his/her


132

resignation. Several other investigations have also been conducted. A qualitative transition made

during this Financial Year has been to treat offences in terms of the PFMA with the seriousness

that they deserve and not merely as “childishness”.

Remediation. This function resides in the office of the Chief Operations Officer. It is handled in

terms of the Department’s Disciplinary Code and Procedures. Cases are also reported to law

enforcement agencies and currently, there are cases being investigated by the Directorate:

Priority Crimes and also, the Special Investigations Unit is seized with the process of seeking a

Presidential Proclamation in respect of other cases.

Mechanisms in place to report fraud and corruption and how these operate.eg: Whistle blowing - The

need for officials to make confidential disclosure about suspect fraud and corruption

In addition to reporting directly to the Public Service Commission via the National Anti-

Corruption Hotline (NACH), employees report directly to the Directorate: Forensic Investigations.

There are also employees who report especially conscientious Deputy Directors General and

these (DDGs) in turn channel such reports to the Directorate: Forensic Investigations. Employees

and other stakeholders are permitted to report anonymously.

How these cases are reported and what action is taken

Employees and other stakeholders have the latitude to either report anonymously or, to report

in person. They can either report internally within the Department and also, externally. Besides

reporting to the Public Service Commission, some stakeholders have also used the avenue of the

Public Protector’s Office.

4. MINIMISING CONFLICT OF INTEREST

The Department has implemented a number of measures to minimise conflict of interest. In supply

chain management (SCM) specifically:

The implementation of Standard Bidding Documents, including the SBD 4 Form – Declaration of

interest for all procurement as a measure to minimise conflict of interest in SCM; and the SBD 9

Form – Suppliers’ previous performance with government. SBD Forms are required for all

procurements above R500 000.00. Prospective suppliers or service providers are required to

declare any interest and previous performance and this considered in evaluation and adjudication

processes.

Members of Bid Evaluation and Adjudication Committees are also required to sign necessary

declaration of interest forms prior to participating in evaluation and adjudication processes. Where

interest is declared, respective members are requested to recuse themselves from participating in

SCM processes.

The Financial Disclosure Framework is guided by key principles in the Code of Conduct, Chapter

2 of the Public Service Regulations, 2001. In accordance with Chapter 3 of the Public Service

Regulations, 2001, all members of the SMS were sensitised to disclose their financial interests.

The objective was to identify any conflict of interest in order to promote just and fair administrative

actions of officials in senior positions and thereby to protect the public service from actions that

may be detrimental to its functioning and that may constitute unlawful administrative actions as a

result of ulterior motives. Any SMS member who fails to disclose a financial interest or who wilfully

provides incorrect or misleading details will be found guilty of misconduct.


133

5. CODE OF CONDUCT

The Code of Conduct serves as a guideline to employees as to what is expected of them from an

ethical point of view, both in their individual conduct and in their relations with others. Compliance with

the Code is expected to enhance professionalism and to help ensure confidence in the public service.

New appointees are inducted on the Code of Conduct and SMS members are also trained on

disciplinary matters related to violation of the Code of Conduct.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

The workplace should be maintained and protected as far as is reasonably practicable against

health hazards attached to the activities.

The quality of the work environment should be such that, employees and those who may be

affected by their activities be free from health hazards

There should be provision of first aid personnel to render first aid services to any injured person

whilst at work

OHS policy should be developed and enforced to ensure compliance

Legal appointments (Health and safety representatives; first aiders; evacuation wardens; fire

fighters) should be done to ensure compliance

Health hazards should be identified (unsafe acts/ condition) and control measures be applied to

mitigate hazards and risks in the workplace

A Health and safety committee should be formalize to discharge its duties (making

recommendations to management on health and safety related matters)

Ensure the provision and maintenance of fire-fighting equipment (required to fight fire in case of

fire eruption)

Emergency plan and procedure should be developed to address any emergency situations

(provision of emergency equipment such as evacuation-chair for people who are physically

challenged)

Effects it may have on the department

Unsafe acts might result in injuries if not addressed

Lack of training or information on health hazards that might be attached to the work activities

might results in unnecessary injuries

Poor participation on emergency evacuation exercises/ drills might cause chaos during

emergency situation

Contravention of the OHS Act if legal appoints not done; policy not enforced; committees not

discharging its duties (non-compliance risk)

Non-compliance risk if no first aid personnel appointed to render or administer prompt first aid

treatment.

7. PORTFOLIO COMMITTEES

The prime mandate of the Portfolio Committee on Transport (PCOT) is governed by the Constitution

of the Republic 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


134

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, Stategic and Annual Performance Plans of the Department

and entities that fall within the transport portfolio.

The Portfolio Committee on Transport, having considered performance of the Department of

Transport (DoT) and its Entities for the 2012/13 and 2013/14 financial years, as reported in respective

Annual Reports for the period under review, produced the Budgetary Review Recommendations

Report, dated 22 October 2014. The review sought to establsh whether the Department of Transport

and its Entities were achieving their aims and objectives; and also whether they were fulfilling their

constitutional mandates.

The Committee recommended that the mInister ensure the following:

That adequate reviews are performed to ensure that targets are in line with the SMART principle.

Performance indicators should be clear and easy to understand and controls should be put in

place to ensure that information reported by public entities is valid, adequate and complete.

The Committee was concerned that recommendations on findings that had been made by the

Auditor-General in previous financial years had not been implemented and therefore recommends

that all recommendations made by the Auditor-General be implemented. Action plans and their

implementation by the Department and entities are to address the critical audit findings. The

Committee reiterated during its deliberations that audit committees in the Department and public

entities should monitor risks and quarterly progress. The finance departments of the Department

and entities should further be capacitated with the appropriate skills to prepare credible financial

statements.

That established controls and processes are adhered to at all times in the Department and

entities when procuring goods and services. The contract management system should be

implemented to allow for a full asset count. Officials in the SCM units should be adequately

trained on the latest applicable prescripts. Adequate corrective measures should be put in place

to address transgression of the applicable prescripts.

That the eNaTIS system transfer progress plan be monitored. The Committee will request regular

feedback on the progress made to take over the system ftrom the service provider.

The advertising and filling of the vacant posts, especially key vacant posts, be prioritised in the

Department and that the prescribed recruitment processes be followed at all times. The Portfolio

Committee will monitor the progress of the Department in filling key vacancies.

The Committee further recommennds that the Minister monitors the process with regard to

oversight over the public entities and would request regular feedback on key concerns at these

entities.

That the financial sustainability of entities be prioritiesd. The Minister has to ensure that entities

have adequate human and financial resources available to achieve predetermined objectives. The

Committee will engage with National Treasury on this matter.

That the Strategic Plans and Annual Performance Plans of the Departmant and entities are

aligned to the NDP.

Legislative delays should be addressed as a matter of urgency. The Committee will regularly

request updates from the Departmnet on outstanding legislation.

The Committee commends the unqualified and clean audits received by the Department and its

entities, but recommends an increased focus on the servive delivery.

8. SCOPA RESOLUTIONS

Nil.


135

9. PRIOR MODIFICATIONS TO AUDIT REPORTS

Nature of matters of non-

compliance

Financial

year in

which it first

arose

Progress made in clearing / resolving the

matter

The financial statements were

not prepared accordance with

the prescribed financial

reporting framework as required

by section 40(1)(b) of the Public

Finance Management Act.

2013/14 Material misstatements of current assets

and disclosure items were subsequently

corrected and the supporting documents

were provided subsequently.

Effective and appropriate steps

were not taken to prevent

overspending of the budget, to

prevent unauthorised

expenditure and the department

was committed to liabilities for

which money had not been

appropriated as required by

sections 39(2) (a), 38(1) (c) (ii)

and 38(2) of the Public Finance

Management Act and Treasury

Regulation 9.1.1.

2008/09 Bus subsidies were subsequently

amended to a conditional grant to prevent

further over expenditure.

The department entered into litigation to

enable the department to take steps to

prevent the overspending of the

programme: Road Transport.

Effective steps were not taken

to prevent irregular and fruitless

and wasteful expenditure, as

required by section 38(1) (c) (ii)

of the Public Finance

Management Act and Treasury

Regulation 9.1.1.

2008/09 Mechanisms that were put in place to

prevent and / or detect irregular

expenditure are reported on in the Report

of the Accounting Officer, paragrapgh 5.6.

Some details of remaining irregular

expenditure is reported below.

Fruitless and wasteful expenditure is dealt

with by a Loss Control Committee and

recovered as far as possible. Material

cases are being investigated as reported

in the Report of the Accounting Officer.

paragrapgh 5.3.

Contractual obligations and

money owed by the department

were not settled within 30 days

or an agreed period, as required

by section 38(1) (f) of the Public

Finance Management Act and

Treasury Regulation 8.2.3.

2013/14 All late payments must be accompanied

by an explanation. Disciplinary steps are

taken against officials who are

responsible for late payments. Records

are kept of late payments and the

department intends to implement a more

effective invoice tracking system.

Money was spent without the

approval of the Accounting

Officer, as required by Treasury

Regulation 8.2.1 and 8.2.2.

2013/14 Officials were sensitised not to process

payments that are not properly

authorised.

Positions in senior management were vacant for more than 12

2012/13 Officials were instructed to advertise and


136

Nature of matters of non-

compliance

Financial

year in

which it first

arose

Progress made in clearing / resolving the

matter

months, and vacant positions in senior management were not advertised within six months.

fill vacant posts.

A new appointee did not have the required qualifications and experience for the position, and the prescribed selection and approval processes were not followed for the appointment.

2013/14 Responsible officials were sensitised to

ensure that short listed candidates have

the required qualifications and experience

for the position, and to follow the

prescribed selection and approval

processes.

Further details of irregular expenditure:

Fifteen cases of irregular expenditure remain as at 31 March 2015, which are summarised as follows:

Number of cases

Summary of

15 cases

Investi-

gations

Disciplinary

steps taken

Disciplinary

steps not

yet taken

Notes on disciplinary steps

not yet taken

Investigated 6 4 2 Charges were drafted and

disciplinary steps are still in

process

Under

investigation

4 2 2 Awaiting outcome of

investigations

Not

Investigated

5 1 4 Four new cases were

identified during the audit

for which disciplinary steps

were not yet taken and

investigations were not yet

decided upon

15 7 8

10. INTERNAL CONTROL UNIT

During the financial year, the Directorate: Internal Control and Compliance played a vital role in

facilitation of audits conducted by the Office of the Auditor-General. The Internal Control and

Compliance unit managed the administration of audit queries issued by the Auditor- General, and

developed action plans to address weaknesses identified in the final management report of the Office

of the Auditor-General for the previous financial year. The unit followed up on the implementation of

the action plans to address weaknesses and reported the progress on the implementation of the

action plans to the Risk Management & Security Committee, Executive Committee and Audit

Committee. The Directorate also coordinated Audit Steering Committee meetings during the audit as

and when requested by the Office of the Auditor-General.

The Directorate: Internal Control and Compliance also performed compliance reviews on compliance

with the Public Finance Management Act, Treasury Regulations, Division of Revenue Act (DORA),

financial policies and Supply Chain Management prescripts in the form of post-checking of payment


137

batches and compliance checklists. The consolidated internal control manual which includes all

departmental circulars, policies and procedures, business flow charts and forms was periodically

updated on the intranet where all staff can easily access it.

The Directorate: Internal Control and Compliance also facilitated meetings of the Loss Control

Committee and followed resolutions taken by the Committee. The Directorate also managed the

safekeeping of payment batches.

11. INTERNAL AUDIT AND AUDIT COMMITTEES

The strategic objective

To provide an independent and objective assurance and consulting service designed to add value

and improve DoT’s operations through evaluations of internal control, risk management and

governance processes.

The following core Internal Audit functions were undertaken in order to achieve the above strategic

objective:

The review of compliance with laws, regulations, institutional instructions and standard

operational procedures;

The review of effectiveness of operations;

The review of reliability and integrity of financial and operational information;

Safeguarding of assets;

Risk review and assessments;

Performance reviews (economical, efficient and effective use of resources);

Review of Information systems environment

Special assignments (management requests); and

Forensic Investigations

Summary of audit work done

The internal audit has undertaken reviews on the following areas, which fall under Assurance,

Performance or IT Audits:

Leave Management Review

Supply Chain Management Review

Parliamentary Questions Review

Security Management Review

Financial Statement Review (Interim & Annual)

Recruitment & Selection Process Review

MPAT Review

Performance Information and Quarterly Reporting Reviews (all four quarters)

Road Infrastructure Development Review

Road Regulation Review

ICT Governance – Software Maintenance Review

Related Parties Review

Security of personnel information Review

Photocopying Machines Review


138

Change Management follow-up

Public Entity Oversight follow-up

Governance Review follow-up

DORA Compliance follow-up

AGSA Findings follow-up

Key activities and objectives of the audit committee

The audit committee operates in terms of its approved written terms of reference and reviews the

following:

The effectiveness of the internal control systems;

The effectiveness of the internal audit function;

The risk areas of the department to be covered in the scope of internal and external audits;

The adequacy, reliability and accuracy of the financial information provided to management;

Any accounting and auditing concerns identified as a result of internal and external audits;

The department’s compliance with laws, regulations, institutional instructions and standard

operational procedures; and

The activities of the internal audit function, including its annual work programme, co-ordination

with the external auditors, the reports of significant investigations and the responses of

management to specific recommendations.

Attendance of audit committee meetings by audit committee members (Tabular form)

The Audit Committee consists of the members listed hereunder and should meet at least four times

per annum as per its approved terms of reference. During the current year 10 (ten) meetings were

held by the Audit Committee. The current Audit Committee was appointed effective from 01 August

2013 when the term of office of the previous Audit Committee expired.

The table below discloses relevant information on the audit committee members:

Name Qualifications Internal or

external

If internal,

position in

the

department

Date

appointed

Date

Resigned

No. of

Meetings

attended

Ms Pumla

Mzizi

(Chairperson)

CA (SA), B.Compt

(Hons) CTA, BCOM

(Hons) Transport

Economics,

BBusSci Finance

(Hons)

External N/A 22 July 2013 N/A 9

Mr Banda

Mwelase

B.Sc, M.Sc

(Computer

Science), Diploma:

Project

Management


Mr Reginald

Haman

Higher Diploma,

Post-Graduate Dipl.

In Business

Management, MBA

(Enterprise Risk

Management

Framework),

Graduate Diploma

(Governance &



139

Strategy)

Ms Maemili

Ramataboe

CA (Lesotho), MBA,

Accredited

Associate of the

Institute of

Independent

Business (UK),

Management

Development

Programme (UK)


Adv. Frans

Van Der

Westhuizen

Dip Iuris, B.Iuris,

LLB


12. AUDIT COMMITTEE REPORT

We are pleased to present our report for the financial year ended 31 March 2015.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from Section

38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The

Audit Committee also reports that it has adopted appropriate formal terms of reference as its

Audit Committee Charter, has regulated its affairs in compliance with this charter and has

discharged all its responsibilities as contained therein, except that we have not reviewed

changes in accounting policies and practices.

The Effectiveness of Internal Control

Our review of the findings of the Internal Audit work, which was based on the risk

assessments conducted in the department revealed certain weaknesses, which were then

raised with the Department.

The following internal audit work was completed during the year under review:

Leave Management Review

Supply Chain Management Review

Parliamentary Questions Review

Interim Financial Statements Review

Recruitment and Selection Review

Performance Information and Quarterly Reporting Review [All four (4) Quarters]

Road Regulation Review

Road Infrastructure Development Review

ICT Governance- Software Maintenance Review

The following follow-up audits were completed during the year under review:

Change Management Review

Public Entity Oversight Review


140

Governance Review

DORA Compliance Review

AGSA – 2013/14 Management Letter

The following ad-hoc audits were completed during the year under review:

Related Parties Review

Security of Personnel Information Review

Procurement and Utilisation Photocopying Machines Review

The following were areas of concern:

Inadequate management attention and responsibility to ensure the following:

a. proper reporting procedures are adhered to;

b. vacant positions are advertised and filled timeously; and

c. adequate oversight of public entities;

Software license management framework had not yet been adopted, adapted and

implemented

Lack of maintenance of security management and occupational health and safety

systems and operating equipment

Capacity challenges or vacant positions

Poor document management and/ or filing system

Delays to provide information by relevant officials for purposes of consolidating reports

to National Treasury and/or responses to Parliament

Non-compliance with prescripts, policies and procedures

Ineffective Controls regarding recruitment and selection, leave management and public

entity oversight

Inadequate review or monitoring

a. of strategic plans to ensure completeness of required information

b. of public entities

Delays in the facilitation of approval of policies and procedures by responsible officials

and committees

In-Year Management and Monthly/Quarterly Report

The department has reported monthly and quarterly to the Treasury as is required by the

PFMA.

Evaluation of Financial Statements

The Audit Committee has:

reviewed and discussed the external audit outcomes on the audited annual financial

statements to be included in the annual report with the Auditor General South Africa

and the Accounting Officer;

reviewed the Auditor General South Africa’s management report and management’s

responses thereto; and


141

reviewed significant adjustments resulting from the audit.

Auditor General’s Report

We have reviewed the department’s implementation plan for audit issues raised in the

previous year and we are satisfied that the matters have been adequately resolved except

for the following:

Payments made after 30 days

Non-compliance with SCM laws and regulations regarding extension of contract

Remunerative work outside the Department not approved

Vacancies not advertised within 6 months and not filled within 12 months

Reported targets not consistence with targets in annual performance plan

Insufficient evidence provided to verify reliability criteria for predetermined objectives

Non-compliance with PFMA regarding the annual budget process for public entities

The Audit Committee concurs and accepts the conclusions of the Auditor-General on the

annual financial statements and is of the opinion that the audited annual financial statements

be accepted and read together with the report of the Auditor-General.

P Mzizi

_______________________________ Ms Pumla Mzizi CA (SA)

Chairperson of the Audit Committee


Date: 12 August 2015


142

PART D: HUMAN RESOURCE

MANAGEMENT


143

1. INTRODUCTION

The information contained in this part of the annual report has been prescribed by the Minister for the

Public Service and Administration for all departments in the public service.

2. OVERVIEW OF HUMAN RESOURCES

134 posts were filled (including 36 internal promotions) and the annual target of 80 posts (20

posts per quarter) was exceeded by 52 posts. Vacancy rate was reduced from 26.52% to

22.16%.

Achieved 100% compliance the SMS Disclosure Framework.

New Delegations of authority were implemented.

The Medium Term Expenditure Framework Human Resource Plan and Employment Equity

Plan was approved and is being implemented.

The Department has committed to reduce the vacancy rate to 10% by the end of the 2015/16

financial year.

Employment equity targets will be prioritised especially females at Senior Management

Service and People with Disabilities.

The Retention Strategy is being finalised.

All employees on salary level 12 & below were moderated and finalised during the 2013/14

cycle.

98 SMS members (levels 13 & 14), were moderated for the 2013/14 Performance Cycle, 77

were confirmed and finalised and 21 were referred back by the MODCOM members for

Portfolios of Evidence (POE). Another MODCOM meeting date will be confirmed in order to

finalise the 21 outstanding cases.

Rendering a comprehensive Employee Health and Wellness Service to all DoT staff and their

immediate families where they receive assistance and support on problems that affect work

performance. The external service provider ICAS has been contracted to provide this service.

Around 69 sessions of face-to-face counselling were provided to Department of Transport

through ICAS 2014/2015.Life Management services increased from 23.6 to 31.5% during the

last 3 months of the year 2014. Life Management addresses issues of life and work balance,

relationship and communication enhancement, life transitions, financial and business stability.

A Flu Vaccination drive was conducted on the 16th May 2014, 33 staff members were

vaccinated by nurses from Medirite Pharmacy and given information on how to protect

themselves from the flu virus with the aim of reducing absenteeism due to illness.

Nutritional supplements such as E-pap and Life Boost pills are being distributed to all staff as

per need to boost their immune system.

Blood donation drive is held every quarter to enable staff to donate on site.

The Wellness Expo Week was held in September 2014 where various psycho social issues

were tackled, and the employees participated in Health Risk Assessment and HCT.

An Executive wellness was held during the Departmental strategic planning, executives

participated in different Wellness activities and they visited the exhibition stands.

EHW Newsletters were developed, printed and distributed to all staff.

Successfully hosted the Transport Sector Workshop for the review of the National

Operational Plan 2014-2015 and development of the 2015-2016 plan for the implementation

of HIV/AIDS, STI and TB in the transport sector.

Transport Sector HIV & AIDS & TB Operational Plan developed and awaiting approval.

The Annual Review Report for Gender Sensitive and Rights Based HIV / AIDS, STI and TB

Operational Plans 2014/2015 has been submitted to DPSA.


144

The Transport Sector World AIDS Day was successfully commemorated at Bosman station

targeting commuters and people trading around the station.

Departmental events have been hosted in line with the National Health Calendar events such

as Condom Week and Pregnancy Week.

Access to HIV Counselling and Testing has been created for all departmental employees

through HCT Campaign in the workplace and through referrals. Promoted and coordinated

access of confidential client-focused HIV and AIDS Testing and counselling (HCT Campaign)

in the workplace.

The Department was represented on HIV&AIDS and Wellness issues in the Interdepartmental

Departmental Committees and other relevant structures (Immigration and Migrant Task

Team, etc.)

Marketing and promotion of Employee Health and Wellness issues in the department was

done through information (E-mails, Posters, etc circulated) and Orientation/Induction sessions

conducted regularly.

The Employee Health and Wellness Team serves as the Secretariat to the Transport Sector

HIV and AIDS Coordinating Committee

EHW days are arranged and attended by all levels in the department.

The EHW Sports Day was successfully.

Employees and their supervisors frequently consult the Sub-Directorate: EHW for assistance

with different psychosocial issues but not limited to : Absenteeism, HIV and AIDS, substance

abuse, family and financial problems, mental illness, stress, domestic violence; and child

care. Consultations and counselling with both line managers and staff with regard to

psychosocial problems are handled professionally and confidentially. Although there are

challenges with regard to human and financial resources, the employees concerned are

making good progress and job performance is enhanced.

3. HUMAN RESOURCES OVERSIGHT STATISTICS

3.1. Personnel related expenditure

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2014 and 31 March 2015

Programme Total

expenditure (R’000)

Personnel expenditure

(R’000)

Training expenditure

Professional and special

services expenditure

(R’000)

Personnel expenditure as

a % of total expenditure

Average personnel cost per

employee (R’000)

(R’000)

Administration 377 154 155000 0 0 41.10% 224


74 599 36 585 0 0 49% 53

Rail Transport 15 035 507 20151 0 0 0.10% 29

Road Transport 22 202 818 40905 0 0 0.20% 59

Civil Aviation 160 807 32382 0 0 20.10% 47

Maritime Transport 99 528 19 598 0 0 19.70% 28

Public Transport 10 895 519 41271 0 0 0.40% 60

TOTAL 49 146 690 345 891 0 0 0.70% 499


145

Table 3.1.2 Personnel costs by salary band for the period 1 April 2014 and 31 March 2015

Salary band Personnel

expenditure (R’000)

% of total

personnel

cost

No. of

employees

Average

personnel cost

per employee

(R’000)

Lower skilled (Levels 1-2) 0 0 0 0

Skilled (level 3-5) 10 211 2.80% 59 173 068

Highly skilled production (levels

6-8) 58 491 16.10% 230 254 309

Highly skilled supervision (levels

9-12) 136 985 37.80% 262 522 844

Senior and Top management

(levels 13-16) 121 206 33.50% 113 1 072 619

Contract (Levels 3-5) 45 0% 0 0

Contract (Levels 6-8) 1 307 0.40% 13 100 538

Contract (Levels 9-12) 3 000 0.80% 5 600 000

Contract (Levels 13-16) 11 292 3.10% 11 1 026 545

Periodical Remuneration 10 285 2.80% 128 80 352

Total 352 822 97.40% 821 429 747

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the

period 1 April 2014 and 31 March 2015

Programme

Salaries Overtime Home Owners

Allowance Medical Aid

Amount (R’000

Salaries as a % of

personnel costs

Amount (R’000)

Overtime as a % of personnel

costs

Amount (R’000)

HOA as a % of

person-nel

costs

Amount (R’000)

Medical aid as a

% of personnel

costs

Administration 1119 89.20% 0 0% 0 0% 0% 0%


29 048 72.80% 0 0% 703 1.80% 710 1.80%

Rail Transport 15 681 78.70% 5 0% 396 2% 396 2%

Road Transport 34 029 69.50% 0 0% 799 1.60% 1013 2.10%

Civil Aviation 23 558 69.30% 0 0% 514 1.50% 797 2.30%

Maritime Transport

13 272 77.70% 0 0% 376 2.20% 327 1.90%

Public Transport 32 206 74.70% 24 0.10% 812 1.90% 896 2.10%

TOTAL 262 659 72.50% 1167 0.30% 6914 1.90% 7778 2.10%


146

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the

period 1 April 2014 and 31 March 2015

Salary band

Salaries Overtime

Home Owners

Allowance

Medical Aid

Amount

(R’000

Salaries

as a % of

personnel

costs

Amount

(R’000)

Overtime

as a % of

personnel

costs

Amount

(R’000)

HOA as a

% of

personnel

costs

Amount

(R’000)

Medical

aid as a

% of

personnel

costs

Skilled (level 1-

2)

0 0 0 0 0 0 0 0

Skilled (level 3-

5)

6 411 61.40% 412 3.90% 528 5.10% 792 7.60%

Highly skilled

production

(levels 6-8)

41 083 69.90% 444 0.80% 1867 3.20% 3010 5.10%

Highly skilled

supervision

(levels 9-12

104 417 73.40% 306 0.20% 1933 1.40% 2615 1.80%

Senior

management

(level 13-16)

95 745 77% 0 0% 2557 2.10% 1343 1.10%

Contract

(Levels 3-5)

40 88.90% 0 0% 0 0% 0 0%

Contract

(Levels 6-8)

1 248 95.30% 4 0.30% 3 0.20% 0 0%

Contract

(Levels 9-12)

2258 74.70% 0 0% 25 0.80% 17 0.60%

Contract

(Levels 13-16)

10 495 92.20% 0 0% 0 0% 0 0%

Periodical

Remuneration

961 9.10% 0 0% 0 0% 0 0%

TOTAL 262 658 72.50% 1166 0.30% 6913 1.90% 7 777 2.10%

3.2. Employment and Vacancies

Table 3.2.1 Employment and vacancies by programme as on 31 March 2015

Programme Number of

posts on

approved

establishment

Number of

posts filled

Vacancy Rate Number of employees

additional to the

establishment

Programme 1

(Transport Ministry,

Office of the Deputy

Minister, Office of

the Director-

General, Office of

the Chief Operations

Officer, Office of the

Chief Financial

Officer & Transport

Information

Systems)

421 326 22.56% 25

Programme 2

(Integrated

Transport Planning)

78 70 10.26% 5

Programme 3 41 38 7.32% 0


147

(Rail Transport)

Programme 4

(Road Transport)

125 84 32.80% 2

Programme 5

(Civil Aviation)

75 57 24% 2

Programme 6

(Maritime Transport)

44 28 36.36% 0

Programme 7

(Public Transport)

78 68 12.82% 4

Total 862 671 22.16% 38

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2015

Salary band Number of

posts on

approved

establishment

Number of

posts filled


additional to the

establishment

Lower skilled ( 1-2) 0 0 0% 0

Skilled(3-5) 67 60 10.45% 2

Highly skilled

production (6-8) 298 233 21.81% 20

Highly skilled

supervision (9-12) 346 265 23.41% 5

Senior management

(13-16) 151 113 25.16% 11

Total 862 671 22.16% 38

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2015

Critical occupation Number of

posts on

approved

establishment

Number of

posts filled


additional to the

establishment

Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

Total Not Applicable Not Applicable Not Applicable Not Applicable

Notes

The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

Critical occupations are defined as occupations or sub-categories within an occupation –

(a) in which there is a scarcity of qualified and experienced persons currently or

anticipated in the future, either because such skilled persons are not available or they

are available but do not meet the applicable employment criteria;

(b) for which persons require advanced knowledge in a specified subject area or science

or learning field and such knowledge is acquired by a prolonged course or study

and/or specialised instruction;

(c) where the inherent nature of the occupation requires consistent exercise of discretion

and is predominantly intellectual in nature; and

(d) in respect of which a department experiences a high degree of difficulty to recruit or

retain the services of employees.


148

3.3. Filling of SMS Posts

The tables in this section provide information on employment and vacancies as it relates to members

of the Senior Management Service by salary level. It also provides information on advertising and

filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps

taken.

Table 3.3.1 SMS post information as on 31 March 2015

SMS Level Total

number of

funded

SMS posts

Total

number of

SMS posts

filled

% of SMS

posts filled

Total number of

SMS posts vacant

% of SMS posts

vacant

Director-General/

Head of

Department

1 1 100% 0 0%

Salary Level 16 0 0 0% 0 0%

Salary Level 15 10 5 50% 5 50%

Salary Level 14 36 25 69.44% 11 30.56%

Salary Level 13 104 82 78.85% 22 21.15%

Total 151 113 74.84% 38 25.16%

Table 3.3.2 SMS post information as on 30 September 2014

SMS Level Total

number of

funded

SMS posts

Total

number of

SMS posts

filled

% of SMS

posts filled

Total number of

SMS posts vacant

% of SMS posts

vacant

Director-General/

Head of

Department

1 0 0% 1 100%


Salary Level 15 10 8 80% 2 20%

Salary Level 14 36 27 75% 9 25%

Salary Level 13 104 83 79.81% 21 20.19%

Total 151 118 78.14% 33 21.86%

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2014 and 31 March 2015

SMS Level Total

number of

funded

SMS posts

Total

number of

SMS posts

filled

% of SMS

posts filled

Total number of

SMS posts vacant

% of SMS posts

vacant

Director-General/

Head of

Department

1 1 100% 0 0%


Salary Level 15 10 5 50% 5 50%

Salary Level 14 36 25 69.44% 11 30.56%

Salary Level 13 104 82 78.85% 22 21.15%

Total 151 113 74.84% 38 25.16%

Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within

6 months and filled within 12 months after becoming vacant for the period 1 April 2014 and 31 March

2015


149

Reasons for vacancies not advertised within six months

Some SMS posts are in the process of being reviewed hence the delay in advertising them

Reasons for vacancies not filled within six months

Unavailability of panel members to shortlist and interview candidates.

Some SMS posts are in the process of being reviewed hence the delay in filling them.

Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS

posts within 12 months for the period 1 April 2014 and 31 March 2015

Reasons for vacancies not advertised within six months

Not applicable

Reasons for vacancies not filled within six months

Not applicable

Notes

In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate

good cause or reason for not having complied with the filling of SMS posts within the prescribed

timeframes. In the event of non-compliance with this regulation, the relevant executive authority or

head of department must take appropriate disciplinary steps in terms of section 16A(1) or (2) of

the Public Service Act.


150

3.4. Job Evaluation

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job

in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must

be evaluated before they are filled. The following table summarises the number of jobs that were

evaluated during the year under review. The table also provides statistics on the number of posts that

were upgraded or downgraded.

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2014 and 31 March 2015


posts on

approved

establishment

Number

of Jobs

Evaluated

% of

posts

evaluated

by salary

bands

Posts Upgraded Posts downgraded

Number % of

posts

evaluated

Number % of

posts

evaluated

Lower Skilled

(Levels1-2) 0

N/A N/A N/A N/A N/A N/A

Skilled (Levels 3-5) 67 0 0 0 0 0 0

Highly skilled

production (Levels

6-8)

298

9 3 % 0 0 0 0

Highly skilled

supervision

(Levels 9-12)

346

16 4.6% 0 0 0 0

Senior

Management

Service Band A

104

8 7.7% 0 0 0 0

Senior

Management

Service Band B

36 0 0% 0 0 0 0

Senior

Management

Service Band C

10 0 0% 0 0 0 0

Senior

Management

Service Band D

1 0 0% 0 0 0 0

Total 862 34 3.9% 0 0

The following table provides a summary of the number of employees whose positions were upgraded

due to their post being upgraded. The number of employees might differ from the number of posts

upgraded since not all employees are automatically absorbed into the new posts and some of the

posts upgraded could also be vacant.

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded

for the period 1 April 2014 and 31 March 2015

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

The following table summarises the number of cases where remuneration bands exceeded the grade

determined by job evaluation. Reasons for the deviation are provided in each case.


151

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by

occupation for the period 1 April 2014 and 31 March 2015

Occupation Number of

employees

Job

evaluation

level

Remuneration

level

Reason for deviation

Administrative

Workers

5 4

4

6

6

6

5

5

7

7

7

Retention purposes

Retention purposes

Retention purposes

Counter offer

Counter offer

Assistant Director 2 6

10

9

11

Retention purposes

Retention purposes

Deputy Director 4 11

12

12

12

12

13

13

13

Retention purposes

Counter offer

Counter offer

Counter offer

Director 5 13

13

13

13

14

14

14

14

Counter offer

Retention purposes

Retention purposes

Counter offer

Deputy Director-

General

1 15 16 Retention purposes

Total number of employees whose salaries exceeded the level

determined by job evaluation

17

Percentage of total employed 2.53%

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job

evaluation for the period 1 April 2014 and 31 March 2015

Gender African Asian Coloured White Total

Female 6 0 0 1 7

Male 9 1 0 0 10

Total 15 1 0 1 17

Employees with a disability 0 0 0 0 0

Notes

If there were no cases where the salary levels were higher than those determined by job evaluation,

keep the heading and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine by job

evaluation

None


152

3.5. Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates

provide an indication of trends in the employment profile of the department. The following tables

provide a summary of turnover rates by salary band and critical occupations (see definition in notes

below).

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2014 and 31 March 2015


employees at

beginning of period-

1 April 2014

Appointments

and transfers

into the

department

Terminations

and transfers

out of the

department

Turnover rate

Lower skilled ( Levels 1-2) 0 0 0 0%

Skilled (Levels 3-5) 55 12 1 1.82%

Highly skilled production (Levels

6-8)

198 39 20 10.10%

Highly skilled supervision (Levels

9-12)

245 38 16 6.53%

Senior Management Service

Bands A

80 8 8 10%


Bands B

26 0 3 11.54%


Bands C

9 0 2 22.22%


Bands D

0 1 0 0%

Contracts 41 14 0 0%

Total 654 112 50 9.33%

Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2014 and 31 March

2015

Critical occupation Number of employees at

beginning of period-April 2014

Appointments

and transfers

into the

department

Terminations

and transfers

out of the

department

Turnover rate

Not applicable Not applicable Not applicable Not applicable Not applicable

Not applicable Not applicable Not applicable Not applicable Not applicable

TOTAL Not applicable Not applicable Not applicable Not applicable

Notes












153


retain the services of employees.

The table below identifies the major reasons why staff left the department.

Table 3.5.3 Reasons why staff left the department for the period 1 April 2014 and 31 March 2015

Termination Type Number % of Total Resignations

Death 1 2%

Resignation 20 40%

Expiry of contract 11 22%

Dismissal – operational changes 0 0%

Dismissal – misconduct 0 0%

Dismissal – inefficiency 0 0%

Discharged due to ill-health 0 0%

Retirement 2 4%

Transfer to other Public Service Departments 16 3.14%

Other 0 0%

Total 50 7.45%

Total number of employees who left as a % of total employment 7.45%

Table 3.5.4 Promotions by critical occupation for the period 1 April 2014 and 31 March 2015

Occupation Employees 1

April 20YY

Promotions to

another salary

level

Salary level

promotions as a

% of employees

by occupation

Progressions

to another

notch within a

salary level

Notch

progression as a

% of employees

by occupation

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

TOTAL Not applicable Not applicable Not applicable Not applicable Not applicable


154

Table 3.5.5 Promotions by salary band for the period 1 April 2014 and 31 March 2015

Salary Band Employees

1 April

2014

Promotions

to another

salary level

Salary bands

promotions

as a % of

employees

by salary

level

Progressions

to another

notch within

a salary level

Notch progression as a %

of

employees by salary

bands

Lower skilled

( Levels 1-2)

0 0 0% 0 0%

Skilled

(Levels 3-5)

55 5 9.09% 37 67.27%

Highly skilled

production

(Levels 6-8)

198 15 7.57% 116 58.58%

Highly skilled

supervision

(Levels 9-12)

245 14 5.71% 160 65.31%

Senior

Management

(Level 13-16)

115 2 1.74% 76 66.09%

Total 613 36 5.87% 389 63.46%

3.6. Employment Equity

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following

occupational categories as on 31 March 2015

Occupational

category

Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators,

senior officials

and managers

49 1 3 6 28 0 2 2 91

Professionals 20 0 0 1 20 1 0 2 44

Technicians and

associate

professionals

113 3 2 4 129 1 5 8 265

Clerks 57 2 0 1 152 1 0 12 225

Service and

sales workers 17 0 0 0 3 0 0 0 20

Plant and

machine

operators and

assemblers

3 0 0 0 0 0 0 0 3

Elementary

occupations 10 1 0 0 12 0 0 0 23

Total 269 7 5 12 344 3 7 24 671

Employees with

disabilities 2 0 0 4 0 0 6 12

Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following

occupational bands as on 31 March 2015

Occupational Male Female Total


155

band African Coloured Indian White African Coloured Indian White

Top

Management 6 0 0 0 0 0 0 0 6

Senior

Management 53 1 4 6 36 0 3 4 107

Professionally

qualified and

experienced

specialists and

mid-management

108 2 1 5 135 2 4 8 265

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

63 3 0 1 154 1 0 11 233

Semi-skilled and

discretionary

decision making

39 1 0 0 19 0 0 1 60

Unskilled and

defined decision

making

0 0 0 0 0 0 0 0 0

Total 269 7 5 12 344 3 7 24 671

Table 3.6.3 Recruitment for the period 1 April 2014 to 31 March 2015

Occupational

band

Male Female Total


Top

Management

1 0 0 0 0 0 0 0 1

Senior

Management

4 0 0 0 4 0 0 0 8

Professionally

qualified and

experienced

specialists and

mid-management

23 0 0 0 15 0 0 0 38

Skilled technical

and academically

qualified workers,

junior

management,

supervisors,

foreman and

superintendents

14 0 0 0 25 0 0 0 39

Semi-skilled and

discretionary

decision making

11 0 0 0 1 0 0 0 12

Unskilled and

defined decision

making

0 0 0 0 0 0 0 0 0

Total 53 0 0 0 45 0 0 0 98


156

Employees with

disabilities

0 0 0 0 0 0 0 0 0

Table 3.6.4 Promotions for the period 1 April 2014 to 31 March 2015

Occupational band Male Female Total


Top Management 0 0 0 0 0 0 0 0 0

Senior Management 0 0 0 0 0 0 0 0 0

Professionally

qualified and

experienced

specialists and mid-

management

4 0 0 0 7 0 0 0 11

Skilled technical and

academically qualified

workers, junior

management,

supervisors, foreman

and superintendents

6 0 0 0 14 0 0 3 23

Semi-skilled and

discretionary decision

making

0 0 0 0 2 0 0 0 2

Unskilled and defined

decision making

0 0 0 0 0 0 0 0 0

Total 10 0 0 0 23 0 0 3 36

Employees with

disabilities

0 0 0 0 0 0 0 0 0

Table 3.6.5 Terminations for the period 1 April 2014 to 31 March 2015

Occupational band Male Female Total


Top Management 0 0 0 0 0 0 1 1 2

Senior Management 4 0 0 0 6 0 0 1 11

Professionally

qualified and

experienced

specialists and mid-

management

10 1 0 0 4 0 0 0 15

Skilled technical and

academically qualified

workers, junior

management,

supervisors, foreman

and superintendents

5 0 0 0 17 0 0 0 22

Semi-skilled and

discretionary decision

making

0 0 0 0 0 0 0 0 0

Unskilled and defined

decision making

0 0 0 0 0 0 0 0 0

Total 19 1 0 0 27 0 1 2 50

Employees with

Disabilities

0 0 0 0 0 0 0 0 0


157

Table 3.6.6 Disciplinary action for the period 1 April 2014 to 31 March 2015

Disciplinary action Male Female Total


3 0 1 0 1 0 0 0 5

Table 3.6.7 Skills development for the period 1 April 2014 to 31 March 2015

Occupational

category

Male Female Total


Legislators, senior

officials and

managers

35 1 1 2 41 0 1 6 87

Professionals 44 0 0 0 48 1 3 2 98

Technicians and

associate

professionals

0 0 0 0 0 0 0 0 0

Clerks 91 3 0 2 144 0 1 4 245

Service and sales

workers

0 0 0 0 0 0 0 0 0

Skilled agriculture and

fishery workers

0 0 0 0 0 0 0 0 0

Craft and related

trades workers

0 0 0 0 0 0 0 0 0

Plant and machine

operators and

assemblers

9 1 0 0 2 0 0 0 12

Elementary

occupations

28 0 0 0 10 0 0 1 39

Employees with

disabilities

2 0 0 0 4 0 0 2 8

Total 209 5 1 4 249 1 5 15 489

3.7. Signing of Performance Agreements by SMS Members

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information

regarding the signing of performance agreements by SMS members, the reasons for not complying within the

prescribed timeframes and disciplinary steps taken is presented here.

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2014

SMS Level Total number of

funded SMS

posts

Total number of

SMS members

Total number of

signed

performance

agreements

Signed performance

agreements as % of

total number of SMS

members

Director-General/

Head of

Department

Salary Level 16 1 1 N/A (newly

appointed)

N/A

Salary Level 15 5 5 4 80%

Salary Level 14 24 24 23 96%

Salary Level 13 84 84 76 90%

Total 114 114 103


158

Notes

In the event of a National or Provincial election occurring within the first three months of a

financial year all members of the SMS must conclude and sign their performance agreements for

that financial year within three months following the month in which the elections took place. For

example if elections took place in April, the reporting date in the heading of the table above

should change to 31 July 20ZZ.

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on

31 March 2015

Reasons

Director-General was appointed effective from 01 March 2015, in terms of Chapter 4 of the SMS

Handbook, and subsequent DPSA directives all newly appointed SMS members must conclude and sign

Performance Agreements within first three months of appointment. The Director-General will be due to

submit the 2015/16 Performance Agreement by 31 May 2015.

Reasons for non-submission of the SMS member’s Performance Agreement were not provided to the

Directorate: HRD & PMDS, which is then regarded as non-compliance in terms of the DPSA prescripts.

Notes

The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance

agreements as on 31 March 2015

Reasons

Several communication from Directorate: HRD & PMDS are sent to all the non-compliant SMS members

Finally, disciplinary letters signed by the Director-General were sent to all the non-compliant SMS

members

Non-compliant SMS members were serves with disciplinary letters signed by the Director-General. DPSA

directive dated 05/07/2012 it indicates that SMS who do not comply with the submission of the

Performance Agreement as required shall not qualify for performance incentives, being it cash bonus or

pay progression for the relevant performance cycle, (2014/15 performance cycle in this case ).

Subsequent to the 2014/15 SMS annual evaluations by MODCOM, all the non-compliant SMS members

forfeited any performance incentives, i.e. pay progression and cash bonus for the 2014/15 performance

cycle in line with the DPSA directives mentioned above.

Notes

The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

3.8. Performance Rewards

To encourage good performance, the department has granted the following performance rewards during

the year under review. The information is presented in terms of race, gender, disability, salary bands and

critical occupations (see definition in notes below).

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2014 to 31

March 2015

Beneficiary Profile Cost


159

Race and Gender Number of

beneficiaries

Number of

employees

% of total

within group

Cost

(R’000)

Average

cost per

employee

African

Male 140 284 49.3% 4 639 33 137

Female 225 343 65.6% 6 433 28 589

Asian

Male 2 5

40% 112 55 773

Female 6 8

75% 412 68 662

Coloured

Male 7 8

87.5% 138 19 688

Female 3 3

100% 97 32 217

White

Male 11 13

84.6% 884 80 376

Female 19

23

82.6% 696 36 646

Employees with a disability 3 6 50% 72 24 165

Total 416 693 60% 13 483 32 410

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service

for the period 1 April 2014 to 31 March 2015

Salary band

Beneficiary Profile Cost Total cost as

a % of the

total

personnel

expenditure

Number of

beneficiaries

Number of

employees

% of total

within salary

bands

Total Cost

(R’000)

Average cost

per employee

Lower Skilled

(Levels 1-2)

0 0 0 0 0

Skilled (level

3-5)

41 59 69.5% 463 11 293

Highly skilled

production

(level 6-8)

146 230 63.5% 2 433 16 664

Highly skilled

supervision

(level 9-12)

176 262 67.2% 6 160 35 000

Contract

(Levels 6-8)

0 13 0 0 0

Contract

(Level 9-12)

3 5 60% 109 36 333

Periodical

Remuneration

0 128 0 0 0

Total 366 697 52.5% 9 165 25 041

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2014 to 31 March 2015

Critical occupation

Beneficiary Profile Cost

Number of Number of % of total Total Cost Average cost


160

beneficiaries employees within

occupation

(R’000) per employee

Administrative related 48 60 80 2 131 44 396

Agriculture related 0 1 0 0 0

Appraisers-valuers

and related

professionals

1 1 100 54 54 000

Aviation related 10 11 90.9 327 32 700

Biologists botanists

zoologists & rel

professional

1 2 50 37 37 000

Client inform

clerks(switchboard

receptionist inform

clerks)

3 6 50 41 13 667

Communication and

information related

1 4 25 9 9 000

Computer

programmers

1 2 50 20 20 000

Computer system

designers and

analysts

2 3 66.7 81 40 500

Diplomats 0 1 0 0 0

Engineers and related

professionals

1 1 100 38 38 000

Finance and

economics related

0 2 0 0 0

Financial and related

professionals

1 3 33.3 131 131 000

Financial clerks and

credit controllers

20 33 60.6 424 21 200

Food services aids

and waiters

7 9 77.8 68 9 714

Head of

department/chief

executive officer

0 4 0 0 0

Human Resources &

Organisational

Development & relate

prof

0 2 0 0 0

Human Resources

clerks

12 18 66.7 284 23 667

Human Resources

related

9 9 100 435 48 333

Language

practitioners

interpreters & other

Communications

0 1 0 0 0

Legal related 3 5 60 139 46 333


161

Librarians and related

professionals

1 1 100 15 15 000

Library mail and

related clerks

5 5 100 73 14 600

Light vehicle drivers 2 3 66.7 20 10 000

Logistical support

personnel

1 3 33.3 11 11 000

Material-recording and

transport clerks

1 2 50 12 12 000

Messengers porters

and deliverers

10 14 71.4 107 10 700

Natural sciences

related

1 2 50 43 43 000

Other administrative &

related clerks and

organisers

50 64 78.1 1 410 28 200

Other administrative

policy and related

officers

105 199 52.8 3 186 30 343

Other information

technology personnel.

10 11 90.9 137 13 700

Other occupations 1 3 33.3 43 43 000

Regulatory inspectors 0 1 0 0 0

Risk management and

security services

0 1 0 0 0

Secretaries & other

keyboard operating

clerks

59 101 58.4 963 16 322

Security guards 13 18 72.2 170 13 077

Senior managers 36 85 42.4 3 064 85 111

Trade labourers 1 1 100 11 11 000

Trade/industry

advisers & other

related professionional

0 1 0 0 0

Total

416 693 60 13484 32413

Notes












162


retain the services of employees;

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management

Service for the period 1 April 2014 to 31 March 2015

Salary

band

Beneficiary Profile Cost Total cost as a

% of the total

personnel

expenditure

Number of

beneficiaries

Number of

employees

% of total

within salary

bands

Total Cost

(R’000)

Average cost

per employee

Band A 38 83 45.8 2 974 78 263 80 739

Band B 11 30 36.7 1 230 111 818 35 821

Band C 1 7 14.3 112 112 000 11 907

Band D 0 4 0 0 0 0

Total 50 124 40.3 4316 86 320 128467

3.9. Foreign Workers

The tables below summarise the employment of foreign nationals in the department in terms of salary band

and major occupation.

Table 3.9.1 Foreign workers by salary band for the period 1 April 2014 to 31 March 2015

Salary band 01 April 2014 31 March 2015 Change

Number % of total Number % of total Number % Change

Lower skilled 0 0% 0 0% 0 0%

Highly skilled

production

(Lev. 6-8)

0 0% 0 0% 0 0%

Highly skilled

supervision

(Lev. 9-12)

1 20% 1 33.33% 0 0%

Senior

Management

(Lev 13-16)

2 40% 1 33.33% 1 50%

Contract

(level 9-12)

1 20% 0 0% 1 50%

Contract

(level 13-16)

1 20% 1 33.34% 0 0%

Total 5 100% 3 100% 2 100%

Table 3.9.2 foreign workers by major occupation for the period 1 April 2014 to 31 March 2015

Major

occupation

01 April 2014 31 March 2015 Change

Number % of total Number % of total Number % Change

Administrative

Office Workers

2 40% 1 33.33% 1 50%

Professionals

and Managers

3 60% 2 66.67% 1 50%

TOTAL 5 100% 3 100% 2 100%

3.10. Leave utilisation


163

The Public Service Commission identified the need for careful monitoring of sick leave within the

public service. The following tables provide an indication of the use of sick leave and disability leave.

In both cases, the estimated cost of the leave is also provided.

Table 3.10.1 Sick leave for the period 1 January 2014 to 31 December 2014

Salary band Total days % Days with

Medical

certification

Number of

Employees

using sick

leave

% of total

employees

using sick

leave

Average

days per

employee

Estimated

Cost (R’000)

Lower Skills (Level 1-

2)

0 0% 0 0% 0 N/A

Skilled (levels 3-5) 326 84.40% 41 8.30% 8 196

Highly skilled

production

(levels 6-8)

1309 78.50% 179 36.20% 7 1 285

Highly skilled

supervision

(levels 9 -12)

1301 77.90% 188 38.10% 7 2 458

Top and Senior

management

(levels 13-16)

502 84.50% 79 16% 6 1 756

Contract (levels 9-12) 11.5 43.50% 4 0.80% 3 24

Contract

(levels 13 -16)

39 97.40% 3 0.60% 13 122

Total 3488.50 79.70% 494 100% 7 5 841

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2014 to 31

December 2014

Salary band Total days % Days with

Medical

certification

Number of

Employees

using

disability

leave

% of total

employees

using

disability

leave

Average

days per

employee

Estimated

Cost

(R’000)

Lower skilled

(Levels 1-2)

0 0% 0 0% 0 N/A

Skilled (Levels 3-5) 0 0% 0 0% 0 N/A

Highly skilled production

(Levels 6-8)

46 100% 3 23.10% 15 52

Highly skilled supervision

(Levels 9-12)

110 100% 8 61.50% 14 197

Senior management

(Levels 13-16)

54 100% 2 15.40% 27 173

Total 210 100% 13 16% 16 422


164

The table below summarises the utilisation of annual leave. The wage agreement concluded with

trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of

accrued leave being paid at the time of termination of service.

Table 3.10.3 Annual Leave for the period 1 January 2014 to 31 December 2014

Salary band Total days taken Number of Employees

using annual leave

Average per

employee

Lower skilled (Levels 1-2) 0 0 0

Skilled Levels 3-5) 1120 54 21

Highly skilled production

(Levels 6-8)

4701 228 21

Highly skilled supervision

(Levels 9-12)

5834 264 22

Senior management

(Levels 13-16)

2862 124 23

Contract (Levels 3-5 18 1 18

Contract (Level 6-8) 16 4 4

Contract (Level 9-12) 63.92 8 8

Contract (Level 13 -16) 170 12 14

Total 14784.92 695 21

Table 3.10.4 Capped leave for the period 1 January 2014 to 31 December 2014

Salary band Total days of

capped leave

taken

Number of

Employees using

capped leave

Average number

of days taken per

employee

Average capped

leave per

employee as on

31 December 2014

Lower skilled

(Levels 1-2)

0 0 0 0

Skilled Levels 3-5) 9 3 3 39

Highly skilled

production

(Levels 6-8)

0 0 0 0

Highly skilled

supervision

(Levels 9-12)

13 2 7 48

Senior management

(Levels 13-16)

8 8 4 52

Total 30 13 5 46.33


165

The following table summarise payments made to employees as a result of leave that was not taken.

Table 3.10.5 Leave payouts for the period 1 April 2014 and 31 March 2015

Reason Total amount

(R’000)

Number of

employees

Average per

employee

(R’000)

Leave pay out for 2014/15 due to non-utilisation of

leave for the previous cycle

517 15 34 467

Capped leave payouts on termination of service

for 2014/15

1 075 26 41 346

Current leave payout on termination of service for

2014/15

231 12 19 250

Total 1 823 53 34 396

3.11. HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting

HIV & related diseases (if any)

Key steps taken to reduce

the risk

All employees are classified as being at high risk of contracting HIV and

related diseases, that is why all irrespective of their employment levels are

provided with Employee Health and Wellness cards to access counselling

services.

The HIV/AIDS Policy and

operational plan is being

implemented in the

department. Employees and

Peer Counsellors have been

trained on HIV/AIDS.

Confidentiality underpins the

HIV/AIDS programme through

policy and its implementation.

Workshops and Seminars are arranged for all categories of employees

indiscriminately. Strategic Planning sessions for SMS members are used to

provide HCT and other Health Risk Assessments. They are then advised on

their health and referred for further intervention as per need.

Information is circulated

through e-mail; lift news, and

posters and education

sessions to dispel myths and

misconceptions about

HIV/AIDS.

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and

provide the required information)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS

to implement the provisions contained in Part VI E of

Chapter 1 of the Public Service Regulations, 2001? If so,

provide her/his name and position.

Mr Moses Maswanganye Director:

Organisational Development and

Change Management

2. Does the department have a dedicated unit or has it

designated specific staff members to promote the health

and well-being of your employees? If so, indicate the

number of employees who are involved in this task and

the annual budget that is available for this purpose.

Yes, there is a Sub-directorate

(Employee Health and Wellness)

which is designated for health and

wellbeing of employees.

There are three employees

dedicated to this task

Deputy Director: Employee

Health and Wellness;


166

Wellness Officer, and

Wellness Assistant:

The Budget is Grossly

insufficient

3. Has the department introduced an Employee

Assistance or Health Promotion Programme for your

employees? If so, indicate the key elements/services of

this Programme.

Yes, the Department has

introduced a Wellness

Programme with the following

elements:

Provide an effective

framework for health

promotion and preventative

mechanism amongst

employees;

Provide a confidential and

professional counselling

service to all employees and

members of their immediate

families through a 24/7

telephone call centre and

face-to-face psycho-social

counselling external service

provider (ICAS)

Promote improvements in the

workplace that increase the

opportunity for enhanced

performance and service

delivery

Enhance the general

wellbeing of employees

through the implementation of

a range of health and wellness

interventions such as, Health

Risk Assessments, Disease

Management, Stress

Management, Financial

Management, family care

matters such as Bereavement

support etc

HIV/AIDS & TB Management

Programme

Prevent unnecessary

absenteeism and lowered

productivity caused by social,

physical and psychological

factors; and Provide

orientation with regard to the

functioning of the EHW.

Trauma Debriefing Sessions

arranged for traumatized

employees as per need.

Bereavement support offered

to employees and their

families.

4. Has the department established (a) committee(s) as

contemplated in Part VI E.5 (e) of Chapter 1 of the Public

Service Regulations, 2001? If so, please provide the

Transport Sector HIV/AIDS

Committee has been

established


167

names of the members of the committee and the

stakeholder(s) that they represent.

Mr M Maswanganye, Ms V.

Mofokeng, Ms D. Bohlolo, Ms

P. Ramakhale - Department of

Transport

Mr J. Phiri- SAMSA

Ms Sibanyoni- WrHI

Ms M. Mangold- SANAC

Mr T. Mthombeni- Trucking

Wellness /Corridor Empower

Mr A. Shrivastav– FHI 360

Ms T. Mogashoa - TETA

Ms O. Nkosi - ILO

Ms L. Kwini - PRASA

Ms K. Gaula - RAF

Ms F. Modutwane- UNTU

Ms T Odame-Takyi - Gauteng

Provincial Department of

Transport

5. Has the department reviewed its employment policies

and practices to ensure that these do not unfairly

discriminate against employees on the basis of their HIV

status? If so, list the employment policies/practices so

reviewed.

HIV/AIDS and TB

Management Policy

Bereavement Policy

Sports and Recreation Policy

6. Has the department introduced measures to protect

HIV-positive employees or those perceived to be HIV-

positive from discrimination? If so, list the key elements

of these measures.

HIV and AIDS &TB

Management Policy which

describes the Department’s

commitment to addressing the

epidemic are reviewed in light

of latest developments, to

ensure compliance with

relevant Laws.

HIV and AIDS &TB

Management Programme is

popularized and promoted to

staff and they are being taught

about their rights through the

Peer Education /Wellness

Promotion Programme.

Peer Educators/ Wellness

Promoters are appointed from

across the spectrum of

employees, they receive on-

going training.

Disclosure Management and

Confidentiality Training

promote non-discrimination,

openness and trust for safe

HIV disclosure.

No cases of discrimination on

the basis of being HIV positive

have been reported.

All employment policies do not

discriminate against people

with HIV/Status

7. Does the department encourage its employees to DoT Employees are encouraged


168

undergo Voluntary Counselling and Testing? If so, list the

results that you have you achieved.

to undergo HIV Counselling and

Testing (HCT) at all levels 104

employees were tested for HIV

during the 2014/15 financial year.

361 employees were screened for

Health Risk Assessment.

8. Has the department developed measures/indicators to

monitor & evaluate the impact of its health promotion

programme? If so, list these measures/indicators.

Conducting of regular health risk

screenings and HCT and reporting

on these.

On-going psycho-social

counselling offered and self as

well as managerial referral to

the contracted EHW external

Service provider as well as

Executive Wellness and

Wellness Expo held annually

as part of the EHW

Programme for employees;

and

Monitoring of the programme

through feedback from

beneficiaries.

An internal audit for the HIV

and AIDS& TB Management

Programme and Employee

Health & Wellness has been

conducted.

ICAS, the DOT service

provider gives the department

quarterly reports in terms of

the services provided.

The monitoring and evaluation

tool developed by DPSA is

used.

The review is done with

stakeholders in the transport

sector in terms of progress

made before the new

operational plan is developed.

3.12. Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 2014 and 31 March 2015

Total number of Collective agreements None

Notes

If there were no agreements, keep the heading and replace the table with the following:

Total number of Collective agreements None

The following table summarises the outcome of disciplinary hearings conducted within the department for

the year under review.


169

Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2014 and 31 March

2015

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0%

Verbal warning 0 0%

Written warning 0 0%

Final written warning 5 83.33%

Suspended without pay 0 0%

Fine 0 0%

Demotion 0 0%

Dismissal 0 0%

Not guilty 0 0%

Case withdrawn 1 16.67%

Total 6 100%

Notes

If there were no agreements, keep the heading and replace the table with the following:

Total number of Disciplinary hearings finalised None

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2014 and

31 March 2015

Type of misconduct Number % of total

Misrepresentation, dishonesty, financial misconduct and definition

of duty

3 100%

Total 3 100%

Table 3.12.4 Grievances logged for the period 1 April 2014 and 31 March 2015

Grievances Number % of Total

Number of grievances resolved 15 65.22%

Number of grievances not resolved 8 34.78%

Total number of grievances lodged 23 100%

Table 3.12.5 Disputes logged with Councils for the period 1 April 2014 and 31 March 2015

Disputes Number % of Total

Number of disputes upheld 3 100%

Number of disputes dismissed 0 0%

Total number of disputes lodged 3 100%

Table 3.12.6 Strike actions for the period 1 April 2014 and 31 March 2015

Total number of persons working days lost N/A

Total costs working days lost N/A

Amount recovered as a result of no work no pay (R’000) N/A

Table 3.12.7 Precautionary suspensions for the period 1 April 2014 and 31 March 2015

Number of people suspended 4


170

Number of people who’s suspension exceeded 30 days 3

Average number of days suspended 120 days

Cost of suspension(R’000) R 618 744.38

3.13. Skills development

This section highlights the efforts of the department with regard to skills development.

Table 3.13.1 Training needs identified for the period 1 April 2014 and 31 March 2015

Occupational category Gender Number of

employees

as at 1 April

2014

Training needs identified at start of the reporting

period

Learnerships Skills

Programmes

& other

short

courses

Other

forms of

training

Total

Legislators, senior officials

and managers

Female 43 1 63 1 108

Male 70 0 173 9 252

Professionals Female 23 0 63 39 125

Male 21 0 90 20 131

Technicians and associate

professionals

Female 143 0 0 0 143

Male 122 0 0 0 122

Clerks Female 165 3 143 38 349

Male 58 2 34 9 103

Service and sales workers Female 3 2 0 0 5

Male 17 0 0 3 20


fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades

workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine

operators and assemblers

Female 3 0 3 0 6

Male 3 0 1 0 4

Elementary occupations Female 12 0 4 1 17

Male 11 0 0 0 11

Sub Total Female 392 6 276 79 753

Male 302 2 298 41 643

Total 694 8 574 120 1396

Table 3.13.2 Training provided for the period 1 April 2014 and 31 March 2015

Occupational

category

Gender Number of

employees

as at 1 April

2014

Training provided within the reporting period

Learnerships Skills

Programmes

& other

short

courses

Other

forms of

training

Total

Legislators, senior

officials and managers

Female 43 1 38 1 66

Male

70 0 47 9 112

Professionals Female 23 0 104 39 139


171

Male 21 0 83 20 111

Technicians and

associate

professionals

Female 143 0 0 0 0

Male

122 0 0 0 0

Clerks Female 165 3 226 38 315

Male

58 2 158 9 205

Service and sales

workers

Female 3 2 2 0 0

Male 17 0 15 3 0


fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related

trades workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine

operators and

assemblers

Female 3 0 3 0 0

Male 3 0 1 0 0

Elementary

occupations

Female 12 0 5 1 32

Male 11 0 0 0 73

Sub Total Female 392 6 378 79 552

Male 302 2 304 41 501

Total 694 8 682 120 1053

3.14. Injury on duty

The following tables provide basic information on injury on duty.

Table 3.14.1 Injury on duty for the period 1 April 2014 and 31 March 2015

Nature of injury on duty Number % of total

Required basic medical attention only 1 100%

Temporary Total Disablement 0 0%

Permanent Disablement 0 0%

Fatal 0 0%

Total 1 100%


172

3.15. Utilisation of Consultants

The following tables relates information on the utilisation of consultants in the department. In terms of the

Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which

provides in terms of a specific contract on an ad hoc basis any of the following professional services to a

department against remuneration received from any source:

(a) The rendering of expert advice;

(b) The drafting of proposals for the execution of specific tasks; and

(c) The execution of a specific task which is of a technical or intellectual nature, but excludes an

employee of a department.

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2014

and 31 March 2015

Project title

Total number of

consultants that

worked on project

Duration Contract value in

(work days) Rand

Multi Modal Transport Planning and

Coordination Draft Bill 1 300 5,386,000

Up scaling of S'hamba Sonke Road

Program: Cluster A(Gauteng, North

West & Limpopo)

1 300 11,244,960


Program: Cluster C(KZN &

Mpumalanga)

1 300 9,931,680


Program: Cluster B(Northern Cape &

Free State)

1 300 22,019,199


Program: Cluster D(Eastern Cape &

Western Cape)

1 300 19,587,508

Technical and Secretariat Services for

the NTPF 1 300 5,621,700

Development of Regional Corridor

Development Strategy 1 300 2,727,337

Advocate to draft legislation for the No-

Fault Policy/Road Accident Benefit

Scheme (RABS)

1 300 2,312,000

Support to Regulating Committee on

Fees and Charges by ACSA and ATNS 1

120 2,400,623

Update of the National Freight Logistics

Strategy 1 100 2,272,704

Update of the National Freight Databank 1 300 8,941,873

Finalize the Draft White Paper on NADP 1 120 2,436,164

Review White Paper on National

Transport Policy of 1996 1

300 3,357,518

Assist in developing a Branch-line

Strategy and Pilot program 1

230 3,038,123

Forensic Analysis of Putco Sandfontein

Contract 1

60 2,259,266

Internal Audit Services for DLCA 1 40 1,784,546


173

Project title

Total number of

consultants that

worked on project


(work days) Rand

Assist Internal Audit with Audit Report

Audits 2

30 948,158

Natural Continuation: NATMAP 2050

Review and Update 1

90 3,538,560

Competency Assessment 3 30 132,264

Natural Continuation - BBBEE Alignment

Project 3

120 345,826

Job Evaluation 1 60 379,420

Revision of SA Road Traffic Sign Manual 6 180 499,384

Green Paper on National Rail Policy 1 120 495,102

Extension: Provision of Legal Advisory

for the Department of Transport's

intervention in Limpopo

1

300

3,200,000

Rural Accessibility/Multi Modal

Deprivation Index Project 1

300 1,509,702

Extension of:

Feasibility Study: Moloto Development

Corridor

1

230

1,034,666

Establishment of the single source

Transport Economic Regulator through

Developing Policy, Legislation and

Implementation Plan

1

300

1,500,240

Transaction Advisor for PPP -

Government Fleet 1 300 4,900,000

Investigate Issuance of Fraudulent Road

Worthy Certificates 1 300 5,482,256

To Develop, Establish & Manage the

Scrapping Administration Agency (TSA). 1 300 286,979,397

Integrated Transport Sector BBBEE

Annual Survey 2 300 3,636,486

Feasibility study on Traffic Decongestion

at Maseru Bridge Border Post 1 230 2,741,358

Formulation and Implementation of SA

Road Infrastructure Policy 1 90 2,985,820

Marine Pollution Prevention & Response

Vessel capability (Standby Tug) 1 300 46,500,305

Transport Energy Consumption Study

and Reduction Strategy 2 60 1,781,716

Impact of Freight Accidents on SA

Roads 1 120 0

Develop a Green House Gas Inventory,

Database and Emission Reduction

Model for the Transport Sector

1 120 1,325,802

Rail Safety Regulatory Gap Analysis 1 300 2,500,000

National Land Transport Strategic

Framework 1 100 1,975,586

National Guidelines for Rural Transport

Plans 1 230 907,668

Global Competitiveness Study to

Reduce Transport Costs 1 120 1,658,164


174

Project title

Total number of

consultants that

worked on project


(work days) Rand

Correction Factors for ACSA and ATNS

for 2012 and 2013 1 230 395,523

National Operational Guidelines for

Norms and Standards for Learner

Transport

1 100 585,675

NLTA Bill Amendment 1 180 3,905,754

Review of Rural Transport Strategy 1 120 592,800

Non-motorized Transport Facility

Guideline 1 230 1,000,920

Decade Of Action For Road Safety 2 30 854,220

National Land Transport Act 1 120 400,000

DG Consultants 1 180 640,881

TRP Review Option Analysis 1 30 135,432

Review Airlift Strategy 1 120 303,806

Establishment Of NPTR 1 30 23,358

Rail Safety Gap Analysis 1 60 283,591

Technical Oversight & Support 1 300 2,383,541

Forensic Investigations 2 120 232,013

Private Sec Participation Framework 1 60 187,644

Study On Alternatives To Regulate 1 300 311,393

Enatis 1 300 325,680,286

Maritime TRP Policy & Legislation 1 60 329,000

Finalise Policy & Draft Bill RAF 1 30 89,408

Total 74 10,900 820,614,326

Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically

Disadvantaged Individuals (HDIs) for the period 1 April 2014 and 31 March 2015

Project title Percentage ownership by HDI

groups

PANEL. Appointment of Service Provider to Develop a Cooperative

Model Level 4 Score 5

Non-motorized Transport Facility Guideline Level 4 Score 5

Review Road based Subsidized Transport Service Level 2 Score 9

Multi Modal Transport Planning and Coordination Draft Bill Level 3 Score 8

Up scaling of S'hamba Sonke Road Program: Cluster A(Gauteng, North

West & Limpopo) Level 4 Score 5

Up scaling of S'hamba Sonke Road Program: Cluster C(KZN &

Mpumalanga) Level 4 Score 5

Up scaling of S'hamba Sonke Road Program: Cluster B(Northern Cape

& Free State) Level 4 Score 5

Up scaling of S'hamba Sonke Road Program: Cluster D(Eastern Cape &

Western Cape) Level 4 Score 5

Technical and Secretariat Services for the NTPF Level 3 Score 8


175


groups

Development of Regional Corridor Development Strategy Level 2 Score 9

Advocate to draft legislation for the No-Fault Policy/Road Accident

Benefit Scheme (RABS) N/A

Support to Regulating Committee on Fees and Charges by ACSA and

ATNS Level 2 Score 9

Update of the National Freight Logistics Strategy Level 3 Score 8

Update of the National Freight Databank Level 2 Score 9

Finalize the Draft White Paper on NADP Level 4 Score 5

Review White Paper on National Transport Policy of 1996 Level 4 Score 5

Assist in developing a Branch-line Strategy and Pilot program N/A

Forensic Analysis of Putco Sandfontein Contract Level 1 Score 10

Internal Audit Services for DLCA Level 2 Score 9

Assist Internal Audit with Audit Report Audits Level 2 Score 18

Natural Continuation: NATMAP 2050 Review and Update Level 2 Score 9

Competency Assessment N/A

Natural Continuation - BBBEE Alignment Project N/A

Job Evaluation N/A

Revision of SA Road Traffic Sign Manual Level 3 Score 16

Green Paper on National Rail Policy Level 4 Score 12

Extension: Provision of Legal Advisory for the Department of Transport's

intervention in Limpopo Level 3 Score 8

Rural Accessibility/Multi Modal Deprivation Index Project Level 3 Score 8

Extension of: Feasibility Study: Moloto

Development Corridor Level 4 Score 5

Establishment of the single source Transport Economic Regulator

through Developing Policy, Legislation and Implementation Plan Level 2 Score 9

Transaction Advisor for PPP - Government Fleet N/A

Investigate Issuance of Fraudulent Road Worthy Certificates N/A

To Develop, Establish & Manage the Scrapping Administration Agency

(TSA). Level 4 Score 5

Establishment of the Single Source Transport Economic Regulator

through Developing Policy, Legislation and Implementation Plan Level 2 Score 9

Integrated Transport Sector BBBEE Annual Survey Level 3 Score 8

Feasibility study on Traffic Decongestion at Maseru Bridge Border Post N/A

Formulation and Implementation of SA Road Infrastructure Policy Level 4 Score 5

Marine Pollution Prevention & Response Vessel capability (Standby Tug) Level 3 Score 8

Transport Energy Consumption Study and Reduction Strategy Level 3 Score 8

Impact of Freight Accidents on SA Roads Level 4 Score 5


176


groups

Develop a Green House Gas Inventory, Database and Emission

Reduction Model for the Transport Sector Level 1 Score 10

Rail Safety Regulatory Gap Analysis Level 3 Score 8

National Land Transport Strategic Framework Level 2 Score 9

National Guidelines for Rural Transport Plans Level 3 Score 16

Global Competitiveness Study to Reduce Transport Costs Level 4 Score 5

Correction Factors for ACSA and ATNS for 2012 and 2013 Level 4 Score 12

National Operational Guidelines for Norms and Standards for Learner

Transport Level 1 Score 20

NLTA Bill Amendment Level 4 Score 5

Review of Rural Transport Strategy Level 3 Score 16

Non-motorized Transport Facility Guideline Level 3 Score 8

Decade Of Action For Road Safety Level 3 Score 16

National Land Transport Act Level 4 Score 12

DG Consultants N/A

TRP Review Option Analysis N/A

Review Airlift Strategy Level 4 Score 12

Establishment Of NPTR Level 4 Score 12

Rail Safety Gap Analysis N/A

Technical Oversight & Support Level 4 Score 5

Forensic Investigations N/A

Private Sec Participation Framework Level 4 Score 12

Study On Alternatives To Regulate Level 4 Score 12

Enatis Level 4 Score 5

Maritime TRP Policy & Legislation Level 4 Score 12

Finalise Policy & Draft Bill RAF Level 1 Score 20

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2014 and 31

March 2015

Project title Total Number of

consultants that worked on

project

Duration

(Work days)

Donor and contract value in

Rand

N/A N/A N/A N/A

Total number of projects Total individual consultants Total

duration

Work days

Total contract value in Rand

N/A N/A N/A N/A


177

Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically

Disadvantaged Individuals (HDIs) for the period 1 April 2014 and 31 March 2015

Project title Percentage ownership by

HDI groups

Percentage management

by HDI groups

Number of consultants

from HDI groups that

work on the project

N/A N/A N/A N/A

3.16. Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2014 and 31

March 2015


applications

received

Number of

applications

referred to the

MPSA

Number of

applications

supported by

MPSA

Number of

packages

approved by

department

Lower skilled

(Levels 1-2)

Not applicable Not applicable Not applicable Not applicable

Skilled Levels 3-5) Not applicable Not applicable Not applicable Not applicable

Highly skilled

production (Levels

6-8)


Highly skilled

supervision(Levels

9-12)


Senior management

(Levels 13-16) Not applicable Not applicable Not applicable Not applicable

Total Not applicable Not applicable Not applicable Not applicable


178

PART E: FINANCIAL INFORMATION


179

1. REPORT OF THE AUDITOR GENERAL

Auditor’s report

National Department of Transport

3 1 M a r c h 2 0 1 5


180

Report of the auditor-general to the Parliament on

vote no. 37: Department of Transport

Report on the financial statements

Introduction

1. I have audited the financial statements of the Department of Transport set out on pages 185 to 325, which comprise the appropriation statement, the statement of financial position as at 31 March 2015, the statement of financial performance, statement of changes in net asset and cash flow statement for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting Officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard and the requirements of the Public Finance Management Act of South Africa (Act no.1 of 1999)(PFMA ) and the Division of Revenue Act of South Africa( Act no. 2 of 2013)(DoRA) and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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


181

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Transport as at 31 March 2015 and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standard and the requirements of the Public Finance Management Act of South Africa. ( Act no .1 of 1999) and the Division of Revenue Act of South Africa.( Act no. 2 of 2013)

Emphasis of matter

7. I draw attention to the matters below. My opinion is not modified in respect of these

matters.

8. Note 33 to the financial statements indicate that the total of the movable capital assets per

the assets register include assets that are under investigation. The reason why assets are

under investigation is that during a physical asset count, the assets under investigation could

not be directly matched or verified to the asset register. The department is investigating all

the assets that could not be verified or directly matched.

9. The supplementary information set out on pages 326 to 348 does not form part of the

financial statements and is presented as additional information. I have not audited these

schedules and, accordingly, I do not express an opinion thereon.

Report on other legal and regulatory requirements

10. In accordance with the Public Audit Act of South Africa, 2004 (Act no. 25 of 2004)(PAA)

and the general notice issued in terms thereof, I have a responsibility to report findings on

the reported performance information against predetermined objectives for selected

programmes presented in the annual performance report, non-compliance with legislation

and internal control. The objective of my tests was to identify reportable findings as

described under each subheading but not to gather evidence to express assurance on these

matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the

reported performance information for the following selected programmes presented in the

annual performance report of the department for the year ended 31 March 2015:

Programme 3: Rail Transport on pages 72 to 76

Programme 4: Road Transport on pages 77 to 82

Programme 7: Public Transport on pages 97 to 104


182

12. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

13. I evaluated the usefulness of the reported performance information to determine whether

it was presented in accordance with the National Treasury’s annual reporting principles and

whether the reported performance was consistent with the planned programmes. I further

performed tests to determine whether indicators and targets were well defined, verifiable,

specific, measurable, time bound and relevant, as required by the National Treasury’s

Framework for managing programme performance information (FMPPI).

14. I assessed the reliability of the reported performance information to determine whether it

was valid, accurate and complete.

15. The material findings in respect of the selected programmes are as follows:

Reliability of reported performance information


16. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and

store performance information to ensure valid, accurate and complete reporting of actual

achievements against planned objectives, indicators and targets. Significantly important

targets were not reliable when compared to the source information or evidence provided.

This was due to a lack of frequent review of the validity of reported achievements against

source documentation.

17. I did not identify any material findings on the usefulness of the reported performance

information for programme 4: Road Transport.

18. I did not identify any material findings on the usefulness and reliability of the reported

performance information for the following programmes:

Programme 3: Rail Transport.

Programme 7: Public Transport.

Additional matter

19. I draw attention to the following matter:


183

Achievement of planned targets

20. Refer to the annual performance report on pages 54 to 104 and 105 to 127 for

information on the achievement of the planned targets for the year. This information should

be considered in the context of the material findings on the reliability of the reported

performance information for the selected programmes reported in paragraphs 11 to 18 of

this report.

Compliance with legislation

21. I performed procedures to obtain evidence that the department had complied with

applicable legislation regarding financial matters, financial management and other related

matters. My findings on material non-compliance with specific matters in key legislation, as

set out in the general notice issued in terms of the PAA, are as follows:

Strategic planning and performance management

22. A five year strategic plan that covers current financial year was not prepared by the

Accounting Officer as required by Treasury Regulation 5.1.1.

Annual financial statements

23. The financial statements submitted for auditing were not supported by full and proper

records as required by section 40(1) (b) of the Public Finance Management Act. Material

misstatements of non-current assets and disclosure items identified by the auditors in the

submitted financial statements were subsequently corrected and the supporting records

were provided subsequently, resulting in the financial statements receiving an unqualified

audit opinion.

Expenditure management

24. Effective steps were not taken to prevent unauthorised, irregular, fruitless and wasteful

expenditure, as required by section 38(1) (c) (ii) of the Public Finance Management Act and

Treasury Regulation 9.1.1. The irregular expenditure incurred was as a result of the contract

that was extended without following prescribed procurement process. It was a matter

identified during the prior year audit.

25. Funded vacant posts were not filled within 12 months as required by Public Service

Regulation 1/VII/C.1A.2.


184

Internal control

26. I considered internal control relevant to my audit of the financial statements, annual

performance report and compliance with legislation. The matters reported below are limited

to the significant internal control deficiencies that resulted in the findings on the annual

performance report and the findings on non-compliance with legislation included in this

report.

Leadership

27. Inadequate reviews performed on the financial and performance information and

inadequate monitoring over compliance with laws and regulations.

Financial and performance management

28. Inadequate systems were in place to support the information disclosed in the annual

financial statements.

29. Inadequate controls to ensure that accurate and reliable information was maintained to

support the reported information.

Other reports

Investigations

30. Investigations are being performed on the matters related to contract management. The

investigation covers the period 1 April 2014 to 31 March 2015. These investigations are still

in progress.

Pretoria

31 July 2015

185

2. ANNUAL FINANCIAL STATEMENTS


Vote 37

Annual Financial Statements

for the year ended 31 March 2015

Appropriation Statement 186

Notes to the Appropriation Statement 274

Statement of Financial Performance 279

Statement of Financial Position 280

Statement of Changes in Net Assets 281

Cash Flow Statement 282

Accounting Policies 283

Notes to the Annual Financial Statements 292

Statement of Conditional Grants paid to the Provinces 319

Statement of Conditional Grants paid to the Municipalities 323

Annexures 326

DEPARTMENT OF TRANSPORT VOTE 37

APPROPRIATION STATEMENT


186

Appropriation per programme

2014/15 2013/14

Voted funds and Direct charges

Adjusted Appro-priation

Shifting of funds

Virement Final Appro-priation

Actual Expen-diture

Variance Expenditure as % of

final appro-priation

Final Appro-priation

Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Programme

1. Administration 424,879 - (33,990) 390,889 377,489 13,400 96.6% 333,440 315,578

2. Integrated Transport Planning 81,184 - (6,210) 74,974 74,974 - 100.0% 74,913 66,373

3. Rail Transport 15,034,557 - 950 15,035,507 15,035,507 - 100.0% 11,232,84

3 11,232,840

4. Road Transport 21,645,287 - 164,733 21,810,020 22,202,862 (392,842) 101.8% 19,897,20

9 20,665,564

5. Civil Aviation 150,402 - 10,564 160,966 160,966 - 100.0% 245,515 148,602

6. Maritime Transport 110,589 - (8,847) 101,742 99,623 2,119 97.9% 103,557 102,271

7. Public Transport 11,323,771 - (127,200) 11,196,571 11,195,677 894 100.0% 10,514,19

0 10,505,616

TOTAL

48,770,669 - - 48,770,669 49,147,098 (376,429) 100.8% 42,401,66

7 43,036,844

Reconciliation with Statement of Financial Performance

Add:

Departmental receipts 322,107

746,967

Actual amounts per Statement of Financial Performance (Total Revenue)

49,092,776

43,148,634

Actual amounts per Statement of Financial Performance Expenditure

49,147,098 43,036,844




187

Appropriation per economic classification

2014/15 2013/14


Shifting of funds


Actual Expen-diture

Variance Expenditure as % of final

appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments 1,006,450 (2,050) 123,445 1,127,845 1,430,042 (302,197) 126.8% 1,275,023 1,996,526

Compensation of employees 382,880 (13,914) (22,269) 346,697 345,900 797 99.8% 304,459 304,359

Salaries and wages 345,415 (13,024) (20,617) 311,774 310,365 1,409 99.5% 272,564 272,494

Social contributions 37,465 (890) (1,652) 34,923 35,535 (612) 101.8% 31,895 31,865

Goods and services 623,570 11,864 145,714 781,148 1,084,142 (302,994) 138.8% 970,564 1,692,167

Administrative fees 1,299 537 - 1,836 1,281 555 69.8% 1,446 1,455

Advertising 24,079 11,037 (468) 34,648 34,418 230 99.3% 27,993 27,881

Minor assets 3,459 (1,337) 129 2,251 1,820 431 80.9% 1,879 1,757

Audit costs: External 9,262 (1,880) (1,816) 5,566 5,429 137 97.5% 7,208 7,208

Bursaries: Employees 2,291 (1,065) - 1,226 1,226 - 100.0% 1,778 1,768

Catering: Departmental activities 1,659 178 14 1,851 1,744 107 94.2% 1,455 1,295

Communication (G&S) 59,998 300 256 60,554 60,471 83 99.9% 60,964 60,803

Computer services 7,815 122 - 7,937 7,937 - 100.0% 12,944 12,933 Consultants: Business and advisory services 311,102 (9,072) 135,867 437,897 743,473 (305,576) 169.8% 689,801 1,431,545

Legal services 4,683 4,300 - 8,983 8,983 - 100.0% 4,220 4,170

Contractors 3,285 (496) - 2,789 2,553 236 91.5% 3,461 2,519 Agency and support / outsourced services 580 792 - 1,372 1,372 - 100.0% 737 744

Entertainment 720 (291) - 429 429 - 100.0% 382 216 Inventory: Clothing material and accessories - 36 - 36 36 - 100.0% - -




188


2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Consumable supplies 1,403 (252) 4 1,155 1,027 128 88.9% 3,867 2,589 Consumable: Stationery, printing and office supplies 6,464 (572) 209 6,101 4,895 1,206 80.2% 8,562 8,387

Operating leases 52,077 3,052 685 55,814 55,123 691 98.8% 45,533 38,603

Property payments 5,167 (380) - 4,787 4,787 - 100.0% 4,861 4,861 Transport provided: Departmental activity - 630 - 630 630 - 100.0% - -

Travel and subsistence 99,988 12,863 (4) 112,847 111,757 1,090 99.0% 58,618 57,875

Training and development 5,762 (1,723) 97 4,136 4,004 132 96.8% 3,132 2,760

Operating payments 2,911 5,901 10,717 19,529 21,973 (2,444) 112.5% 3,122 2,220

Venues and facilities 19,566 (10,816) 24 8,774 8,774 - 100.0% 28,601 20,578

Transfers and subsidies 47,755,817 455 (123,445) 47,632,827 47,706,799 (73,972) 100.2% 41,105,484 41,020,379

Provinces and municipalities 20,140,276 - - 20,140,276 20,140,276 - 100.0% 18,892,482 18,892,482

Provinces 14,194,207 - - 14,194,207 14,194,207 - 100.0% 13,290,296 13,290,296

Provincial Revenue Funds 14,194,207 - - 14,194,207 14,194,207 - 100.0% 13,290,296 13,290,296

Municipalities 5,946,069 - - 5,946,069 5,946,069 - 100.0% 5,602,186 5,602,186

Municipal bank accounts 5,946,069 - - 5,946,069 5,946,069 - 100.0% 5,602,186 5,602,186

Departmental agencies and accounts 12,203,888 - - 12,203,888 12,283,363 (79,475) 100.7% 10,783,518 10,700,044

Social security funds 978 - - 978 978 - 100.0% 919 918 Departmental agencies (non-business entities) 12,202,910 - - 12,202,910 12,282,385 (79,475) 100.7% 10,782,599 10,699,126

Higher education institutions 10,790 - - 10,790 7,509 3,281 69.6% 10,179 10,179 Foreign governments and international organisations 10,082 - - 10,082 8,783 1,299 87.1% 9,525 7,900




189


2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Public corporations and private enterprises 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Public corporations 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113 Subsidies on products and production (pc) 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Non-profit institutions 20,715 - - 20,715 19,808 907 95.6% 18,880 18,880

Households 423,765 455 (123,445) 300,775 300,759 16 100.0% 231,787 231,781

Social benefits 161 446 - 607 591 16 97.4% 886 881

Other transfers to households 423,604 9 (123,445) 300,168 300,168 - 100.0% 230,901 230,900

Payments for capital assets 8,402 1,595 - 9,997 9,997 - 100.0% 21,160 19,859

Buildings and other fixed structures - - - - - - 0.0% 8,200 8,197

Other fixed structures - - - - - - 0.0% 8,200 8,197

Machinery and equipment 8,402 1,595 - 9,997 9,997 - 100.0% 12,960 11,662

Other machinery and equipment 8,402 1,595 - 9,997 9,997 - 100.0% 12,960 11,662

Payment for financial assets - - - - 260 (260) 0.0% - 80

Total 48,770,669 - - 48,770,669 49,147,098 (376,429) 100.8% 42,401,667 43,036,844




190

Programme 1: Administration

2014/15 2013/14


Shifting of funds


Actual Expen-diture

Variance Expen-diture as % of final

appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Ministry 38,560 (2,611) - 35,949 35,571 378 98.9% 34,413 33,049

2. Management 66,721 (400) (12,590) 53,731 44,748 8,983 83.3% 48,754 48,425

3. Corporate Services 229,984 (640) (20,120) 209,224 205,347 3,877 98.1% 166,545 166,469

4. Communications 43,098 (105) (1,280) 41,713 41,551 162 99.6% 43,961 33,710

5. Office Accommodation 46,516 3,756 - 50,272 50,272 - 100.0% 39,767 33,925

424,879 - (33,990) 390,889 377,489 13,400 96.6% 333,440 315,578

Economic classification

Current payments 406,781 (239) (33,990) 372,552 362,417 10,135 97.3% 313,021 295,664

Compensation of employees 172,805 - (17,000) 155,805 155,008 797 99.5% 141,464 141,377

Salaries and wages 155,670 - (15,492) 140,178 138,769 1,409 99.0% 126,426 126,368

Social contributions 17,135 - (1,508) 15,627 16,239 (612) 103.9% 15,038 15,009

Goods and services 233,976 (239) (16,990) 216,747 207,409 9,338 95.7% 171,557 154,287

Administrative fees 1,239 529 - 1,768 1,243 525 70.3% 1,436 1,436

Advertising 20,677 9,933 - 30,610 30,418 192 99.4% 22,986 22,986

Minor assets 2,239 (1,179) - 1,060 630 430 59.4% 778 673





191


2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Bursaries: Employees 2,291 (1,065) - 1,226 1,226 - 100.0% 1,768 1,768

Catering: Departmental activities 763 (110) - 653 596 57 91.3% 885 791

Communication (G&S) 4,485 599 - 5,084 5,084 - 100.0% 5,574 5,574

Computer services 7,032 (742) - 6,290 6,290 - 100.0% 10,947 10,936

Consultants: Business and advisory services 26,550 (3,049) (15,174) 8,327 3,033 5,294 36.4% 17,185 17,133

Legal services 4,683 4,300 - 8,983 8,983 - 100.0% 4,220 4,170

Contractors 1,347 929 - 2,276 2,068 208 90.9% 2,344 1,457

Agency and support / outsourced services 580 792 - 1,372 1,372 - 100.0% 737 737

Entertainment 720 (293) - 427 427 - 100.0% 382 216

Consumable supplies 865 (147) - 718 594 124 82.7% 2,845 1,510

Consumable: Stationery, printing and office

supplies 4,808 (1,542) - 3,266 2,081 1,185 63.7% 4,796 4,670

Operating leases 49,803 2,231 - 52,034 51,412 622 98.8% 41,921 35,710

Property payments 5,167 (380) - 4,787 4,787 - 100.0% 4,861 4,861

Travel and subsistence 70,425 3,086 - 73,511 72,947 564 99.2% 24,655 24,655

Training and development 5,222 (2,035) - 3,187 3,187 - 100.0% 2,428 2,428

Operating payments 1,943 (166) - 1,777 1,777 - 100.0% 1,272 1,146

Venues and facilities 13,875 (10,050) - 3,825 3,825 - 100.0% 12,524 4,417

Transfers and subsidies 12,102 34 - 12,136 8,682 3,454 71.5% 11,558 11,556

Departmental agencies and accounts 1,151 - - 1,151 978 173 85.0% 919 918

Social security funds 978 - - 978 978 - 100.0% 919 918




192


2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Departmental agencies (non-business entities) 173 - - 173 - 173 0.0% - -

Higher education institutions 10,790 - - 10,790 7,509 3,281 69.6% 10,179 10,179

Households 161 34 - 195 195 - 100.0% 460 459

Social benefits 161 29 - 190 190 - 100.0% 457 456

Other transfers to households - 5 - 5 5 - 100.0% 3 3

Payments for capital assets 5,996 205 - 6,201 6,201 - 100.0% 8,861 8,287

Machinery and equipment 5,996 205 - 6,201 6,201 - 100.0% 8,861 8,287

Other machinery and equipment 5,996 205 - 6,201 6,201 - 100.0% 8,861 8,287


Total 424,879 - (33,990) 390,889 377,489 13,400 96.6% 333,440 315,578




193

Subprogramme: 1.1: Ministry

2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments 37,535 (2,654) - 34,881 34,501 380 98.9% 33,568 32,188

Compensation of employees 16,621 - - 16,621 16,241 380 97.7% 15,521 15,520

Salaries and wages 15,734 15,734 14,733 1,001 93.6% 14,156 14,156

Social contributions 887 887 1,508 (621) 170.0% 1,365 1,364

Goods and services 20,914 (2,654) - 18,260 18,260 - 100.0% 18,047 16,668

Administrative fees 2 2 2 - 100.0% - -

Advertising 619 (619) - - - 0.0% - -

Minor assets 575 (500) 75 75 - 100.0% 21 21

Catering: Departmental activities 251 41 292 292 - 100.0% 184 184

Communication (G&S) 1,530 (408) 1,122 1,122 - 100.0% 890 890

Computer services 63 (63) - - - 0.0% 12 1

Consultants: Business and advisory services 500 (500) - - - 0.0% 4 -

Legal services - - - - 0.0% 50 -

Contractors 466 (441) 25 25 - 100.0% 579 579

Agency and support / outsourced services - 65 65 65 - 100.0% - -

Entertainment - 74 74 74 - 100.0% 260 94

Consumable supplies 400 (291) 109 109 - 100.0% 426 74

Consumable: Stationery, printing and office supplies 235 (36) 199 199 - 100.0% 193 67




194

Subprogramme: 1.1: Ministry

2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Operating leases 580 (486) 94 94 - 100.0% 642 334

Property payments - - - - 0.0% 1 1

Travel and subsistence 14,576 318 14,894 14,894 - 100.0% 14,077 14,077

Training and development - 6 6 6 - 100.0% 11 11

Operating payments 297 84 381 381 - 100.0% 300 174

Venues and facilities 820 102 922 922 - 100.0% 397 161

Transfers and subsidies - 4 - 4 4 - 100.0% 18 18

Households - 4 - 4 4 - 100.0% 18 18

Social benefits - - 0.0% 16 16

Other transfers to households - 4 4 4 - 100.0% 2 2

Payments for capital assets 1,025 39 - 1,064 1,064 - 100.0% 827 826

Machinery and equipment 1,025 39 - 1,064 1,064 - 100.0% 827 826

Other machinery and equipment 1,025 39 1,064 1,064 - 100.0% 827 826

Payment for financial assets - 2 (2) 0.0% - 17

Total 38,560 (2,611) - 35,949 35,571 378 98.9% 34,413 33,049




195

Subprogramme: 1.2: Management

2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 66,158 (1,102) (12,590) 52,466 43,453 9,013 82.8% 46,964 46,957


Salaries and wages 35,338 (7,550) 27,788 27,786 2 100.0% 26,343 26,339

Social contributions 3,266 (50) 3,216 3,207 9 99.7% 2,990 2,990

Goods and services 27,554 (1,102) (4,990) 21,462 12,460 9,002 58.1% 17,631 17,628

Administrative fees 545 545 20 525 3.7% 243 243

Advertising 220 116 336 336 - 100.0% 46 46

Minor assets 667 667 237 430 35.5% 315 315

Audit costs: External 262 18 280 280 - 100.0% 373 373

Catering: Departmental activities 190 190 133 57 70.0% 110 110

Communication (G&S) 813 101 914 914 - 100.0% 658 658

Computer services 102 83 185 185 - 100.0% 101 101

Consultants: Business and advisory services 14,419 (2,555) (4,990) 6,874 1,580 5,294 23.0% 8,564 8,561

Contractors 214 214 6 208 2.8% 30 30

Consumable supplies 231 231 114 117 49.4% 53 53

Consumable: Stationery, printing and office supplies 2,019 2,019 834 1,185 41.3% 1,632 1,632

Operating leases 960 960 338 622 35.2% 97 97

Property payments - - - - 0.0% 179 179

Travel and subsistence 6,296 6,296 5,732 564 91.0% 3,901 3,901




196

Subprogramme: 1.2: Management

2014/15 2013/14


Shifting of funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Training and development 50 61 111 111 - 100.0% 49 49


Venues and facilities 519 980 1,499 1,499 - 100.0% 1,210 1,210


Households - 41 - 41 41 - 100.0% 119 118

Social benefits - 40 40 40 - 100.0% 118 117

Other transfers to households - 1 1 1 - 100.0% 1 1

Payments for capital assets 563 661 - 1,224 1,224 - 100.0% 1,671 1,341

Machinery and equipment 563 661 - 1,224 1,224 - 100.0% 1,671 1,341

Other machinery and equipment 563 661 1,224 1,224 - 100.0% 1,671 1,341


Total 66,721 (400) (12,590) 53,731 44,748 8,983 83.3% 48,754 48,425




197

Subprogramme: 1.3: Corporate Services

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance

Expen-diture as % of final

appro-priation


Actual Expen-diture


Current payments 213,849 (239) (20,120) 193,490 192,954 536 99.7% 149,198 149,080



Social contributions 12,009 (1,330) 10,679 10,679 - 100.0% 9,959 9,959

Goods and services 107,625 (239) (12,000) 95,386 95,249 137 99.9% 60,528 60,483

Administrative fees 692 529 1,221 1,221 - 100.0% 1,193 1,193

Advertising 4,048 77 4,125 4,125 - 100.0% 4,105 4,105

Minor assets 739 (447) 292 292 - 100.0% 332 332


Bursaries: Employees 2,291 (1,065) 1,226 1,226 - 100.0% 1,768 1,768

Catering: Departmental activities 252 (88) 164 164 - 100.0% 441 441

Communication (G&S) 1,921 883 2,804 2,804 - 100.0% 3,831 3,831

Computer services 6,857 (762) 6,095 6,095 - 100.0% 10,834 10,834

Consultants: Business and advisory services 11,631 (10,184) 1,447 1,447 - 100.0% 8,617 8,572

Legal services 4,683 4,300 8,983 8,983 - 100.0% 4,170 4,170

Contractors 667 1,332 1,999 1,999 - 100.0% 845 845

Agency and support / outsourced services 580 613 1,193 1,193 - 100.0% 737 737

Entertainment 720 (367) 353 353 - 100.0% 122 122




198

Subprogramme: 1.3: Corporate Services

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Consumable supplies 224 144 368 368 - 100.0% 1,381 1,381

Consumable: Stationery, printing and office supplies 1,809 (793) 1,016 1,016 - 100.0% 1,879 1,879

Operating leases 1,627 (960) 667 667 - 100.0% 1,334 1,334

Property payments 5,167 (381) 4,786 4,786 - 100.0% 4,681 4,681

Travel and subsistence 47,626 1,292 48,918 48,918 - 100.0% 4,393 4,393

Training and development 5,172 (2,102) 3,070 3,070 - 100.0% 2,364 2,364

Operating payments 1,279 (593) 686 686 - 100.0% 371 371


Transfers and subsidies 12,102 (52) - 12,050 8,596 3,454 71.3% 11,350 11,349

Departmental agencies and accounts 1,151 - - 1,151 978 173 85.0% 919 918

Social security funds 978 978 978 - 100.0% 919 918

Departmental agencies (non-business entities) 173 173 - 173 0.0% - -

Higher education institutions 10,790 10,790 7,509 3,281 69.6% 10,179 10,179

Households 161 (52) - 109 109 - 100.0% 252 252

Social benefits 161 (52) 109 109 - 100.0% 252 252

Payments for capital assets 4,033 (349) - 3,684 3,684 - 100.0% 5,997 5,997

Machinery and equipment 4,033 (349) - 3,684 3,684 - 100.0% 5,997 5,997

Other machinery and equipment 4,033 (349) 3,684 3,684 - 100.0% 5,997 5,997


Total 229,984 (640) (20,120) 209,224 205,347 3,877 98.1% 166,545 166,469




199

Subprogramme: 1.4: Communications

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 42,723 - (1,280) 41,443 41,237 206 99.5% 43,524 33,514



Social contributions 973 (128) 845 845 - 100.0% 724 696

Goods and services 31,367 - - 31,367 31,168 199 99.4% 35,584 25,583

Advertising 15,790 10,359 26,149 25,957 192 99.3% 18,835 18,835

Minor assets 258 (232) 26 26 - 100.0% 110 5



Computer services 10 10 10 - 100.0% - -

Consultants: Business and advisory services - 6 6 6 - 100.0% - -

Contractors - 38 38 38 - 100.0% 890 3


Consumable: Stationery, printing and office supplies 745 (713) 32 32 - 100.0% 1,092 1,092


Property payments - 1 1 1 - 100.0% - -


Training and development - - - - 0.0% 4 4


Venues and facilities 11,896 (11,179) 717 717 - 100.0% 10,427 2,556




200

Subprogramme: 1.4: Communications

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture



Households - 41 - 41 41 - 100.0% 71 71

Social benefits 41 41 41 - 100.0% 71 71

Payments for capital assets 375 (146) - 229 229 - 100.0% 366 123

Machinery and equipment 375 (146) - 229 229 - 100.0% 366 123

Other machinery and equipment 375 (146) 229 229 - 100.0% 366 123


Total 43,098 (105) (1,280) 41,713 41,551 162 99.6% 43,961 33,710




201

Subprogramme: 1.5: Office Accommodation

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 46,516 3,756 - 50,272 50,272 - 100.0% 39,767 33,925

Goods and services 46,516 3,756 - 50,272 50,272 - 100.0% 39,767 33,925

Operating leases 46,516 3,756 50,272 50,272 - 100.0% 39,767 33,925

Total 46,516 3,756 - 50,272 50,272 - 100.0% 39,767 33,925




202


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Macro Sector Planning 14,565 (1,274) - 13,291 13,291 - 100.0% 9,307 8,992

2. Logistics 16,770 203 (3,428) 13,545 13,548 (3) 100.0% 16,039 16,038

3. Modeling and Economic Analysis 22,231 (1,773) (679) 19,779 19,781 (2) 100.0% 22,928 21,808

4. Regional Integration 8,039 614 (965) 7,688 7,688 - 100.0% 6,105 6,105

5. Research and Innovation 13,722 1,520 (1,138) 14,104 14,104 - 100.0% 14,467 7,364

6.

Integrated Transport Planning Administration Support

5,857 710 - 6,567 6,562 5 99.9% 6,067 6,066

81,184 - (6,210) 74,974 74,974 - 100.0% 74,913 66,373


Current payments 80,955 (688) (6,210) 74,057 74,057 - 100.0% 73,708 65,493

Compensation of employees 39,382 (15) (2,782) 36,585 36,585 - 100.0% 31,678 31,676

Salaries and wages 36,122 (503) (2,662) 32,957 32,957 - 100.0% 28,476 28,474

Social contributions 3,260 488 (120) 3,628 3,628 - 100.0% 3,202 3,202

Goods and services 41,573 (673) (3,428) 37,472 37,472 - 100.0% 42,030 33,817

Advertising 523 660 - 1,183 1,183 - 100.0% 1,791 1,785

Minor assets 123 43 - 166 166 - 100.0% 260 210




203


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Audit costs: External - - - - - - 0.0% 195 195

Catering: Departmental activities 102 2 - 104 104 - 100.0% 59 59

Communication (G&S) 233 344 - 577 577 - 100.0% 591 538

Computer services 24 (16) - 8 8 - 100.0% 155 155

Consultants: Business and advisory services 34,886 (4,026) (3,428) 27,432 27,432 - 100.0% 29,888 22,612

Contractors 20 10 - 30 30 - 100.0% 324 324

Entertainment - 2 - 2 2 - 100.0% - -

Consumable supplies 88 15 - 103 103 - 100.0% 395 395

Consumable: Stationery, printing and office supplies

120 164 - 284 284 - 100.0% 1,141 1,104

Operating leases 204 33 - 237 237 - 100.0% 192 192

Travel and subsistence 3,494 1,755 - 5,249 5,249 - 100.0% 5,053 4,272

Training and development 150 249 - 399 399 - 100.0% 15 15

Operating payments 430 481 - 911 911 - 100.0% 522 522

Venues and facilities 1,176 (389) - 787 787 - 100.0% 1,439 1,439

Transfers and subsidies - 223 - 223 207 16 92.8% 114 114

Households - 223 - 223 207 16 92.8% 114 114

Social benefits - 223 - 223 207 16 92.8% 114 114

Payments for capital assets 229 465 - 694 694 - 100.0% 1,091 761

Machinery and equipment 229 465 - 694 694 - 100.0% 1,091 761

Other machinery and equipment 229 465 - 694 694 - 100.0% 1,091 761




204


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000


Total 81,184 - (6,210) 74,974 74,974 - 100.0% 74,913 66,373

Subprogramme: 2.1: Macro Sector Planning

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 14,565 (1,509) - 13,056 13,056 - 100.0% 8,766 8,705

Compensation of employees 6,672 (1,341) - 5,331 5,331 - 100.0% 5,561 5,560

Salaries and wages 6,160 (1,332) 4,828 4,828 - 100.0% 4,983 4,982


Goods and services 7,893 (168) - 7,725 7,725 - 100.0% 3,205 3,145

Advertising 4 (2) 2 2 - 100.0% 1 1

Minor assets 19 (13) 6 6 - 100.0% 92 92

Catering: Departmental activities 10 (10) - - - 0.0% - -


Computer services 8 (7) 1 1 - 100.0% 6 6




205

Subprogramme: 2.1: Macro Sector Planning

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Consultants: Business and advisory services 7,228 (382) 6,846 6,846 - 100.0% 2,272 2,214

Contractors 20 (20) - - - 0.0% 9 9

Consumable supplies 6 15 21 21 - 100.0% 77 77 Consumable: Stationery, printing and office supplies 29 56 85 85 - 100.0% - -


Travel and subsistence 335 80 415 415 - 100.0% 470 468

Training and development 50 52 102 102 - 100.0% - -

Operating payments - 4 4 4 - 100.0% 7 7



Households - 104 - 104 104 - 100.0% 45 45

Social benefits - 104 104 104 - 100.0% 45 45

Payments for capital assets - 131 - 131 131 - 100.0% 496 239

Machinery and equipment - 131 - 131 131 - 100.0% 496 239

Other machinery and equipment - 131 131 131 - 100.0% 496 239

Payment for financial assets - - 0.0% - 3

Total 14,565 (1,274) - 13,291 13,291 - 100.0% 9,307 8,992




206

Subprogramme: 2.2: Logistics

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 16,770 108 (3,428) 13,450 13,450 - 100.0% 15,932 15,931

Compensation of employees 7,746 1,162 - 8,908 8,908 - 100.0% 6,966 6,965

Salaries and wages 7,008 946 7,954 7,954 - 100.0% 6,231 6,230

Social contributions 738 216 954 954 - 100.0% 735 735

Goods and services 9,024 (1,054) (3,428) 4,542 4,542 - 100.0% 8,966 8,966

Advertising 3 15 18 18 - 100.0% 1 1

Minor assets 2 37 39 39 - 100.0% 54 54

Catering: Departmental activities 30 (30) - - - 0.0% 3 3




Contractors - - - - 0.0% 4 4

Consumable supplies 2 (2) - - - 0.0% 25 25 Consumable: Stationery, printing and office supplies - 12 12 12 - 100.0% 2 2

Operating leases 9 33 42 42 - 100.0% 29 29

Travel and subsistence 901 294 1,195 1,195 - 100.0% 1,572 1,572






207

Subprogramme: 2.2: Logistics

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Venues and facilities 45 (31) 14 14 - 100.0% 52 52




Payment for financial assets - 3 (3) 0.0%

Total 16,770 203 (3,428) 13,545 13,548 (3) 100.0% 16,039 16,038




208

Subprogramme: 2.3: Modeling and Economic Analysis

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 22,231 (1,937) (679) 19,615 19,615 - 100.0% 22,715 21,667

Compensation of employees 9,659 (878) (679) 8,102 8,102 - 100.0% 6,314 6,314

Salaries and wages 8,855 (958) (679) 7,218 7,218 - 100.0% 5,574 5,574



Advertising 502 74 576 576 - 100.0% 1,774 1,774

Minor assets - 30 30 30 - 100.0% 50 6

Audit costs: External - - - - 0.0% 195 195

Bursaries: Employees - - - - 0.0% 10 -





Contractors - 22 22 22 - 100.0% 3 3

Entertainment - 1 1 1 - 100.0% - -

Consumable supplies 10 23 33 33 - 100.0% 264 264 Consumable: Stationery, printing and office supplies 22 67 89 89 - 100.0% 1,070 1,070

Operating leases 26 44 70 70 - 100.0% - -




209

Subprogramme: 2.3: Modeling and Economic Analysis

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture






Transfers and subsidies - - - - - - 0.0% 7 7

Households - - - - - - 0.0% 7 7






Total 22,231 (1,773) (679) 19,779 19,781 (2) 100.0% 22,928 21,808




210

Subprogramme: 2.4: Regional Integration

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 8,039 578 (965) 7,652 7,652 - 100.0% 6,048 6,048

Compensation of employees 4,320 - (965) 3,355 3,355 - 100.0% 3,174 3,174

Salaries and wages 3,886 (816) 3,070 3,070 - 100.0% 2,892 2,892


Goods and services 3,719 578 - 4,297 4,297 - 100.0% 2,874 2,874

Advertising 4 (3) 1 1 - 100.0% 2 2

Minor assets - 27 27 27 - 100.0% 2 2


Computer services 3 3 3 - 100.0% - -

Consultants: Business and advisory services 3,200 547 3,747 3,747 - 100.0% 2,459 2,459

Contractors - 6 6 6 - 100.0% 96 96

Consumable supplies - 2 2 2 - 100.0% 20 20 Consumable: Stationery, printing and office supplies - 34 34 34 - 100.0% 11 11


Travel and subsistence 447 (61) 386 386 - 100.0% 199 199

Operating payments - - - - 0.0% 1 1






211

Subprogramme: 2.4: Regional Integration

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture




Total 8,039 614 (965) 7,688 7,688 - 100.0% 6,105 6,105




212

Subprogramme: 2.5: Research and Innovation

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 13,722 1,430 (1,138) 14,014 14,014 - 100.0% 14,375 7,272

Compensation of employees 7,816 - (1,138) 6,678 6,678 - 100.0% 5,627 5,627




Advertising 8 (7) 1 1 - 100.0% 10 4

Minor assets 32 14 46 46 - 100.0% 11 5

Catering: Departmental activities 27 (17) 10 10 - 100.0% - -



Consultants: Business and advisory services 5,306 559 5,865 5,865 - 100.0% 7,401 1,177

Contractors - 2 2 2 - 100.0% - -

Consumable supplies 20 (1) 19 19 - 100.0% 7 7 Consumable: Stationery, printing and office supplies 39 (39) - - - 0.0% 37 -


Travel and subsistence 371 780 1,151 1,151 - 100.0% 1,108 331

Training and development - 14 14 14 - 100.0% - -





213

Subprogramme: 2.5: Research and Innovation

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture






Total 13,722 1,520 (1,138) 14,104 14,104 - 100.0% 14,467 7,364




214

Subprogramme: 2.6: Integrated Transport Planning Administration Support

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments 5,628 642 - 6,270 6,270 - 100.0% 5,872 5,870





Advertising 2 583 585 585 - 100.0% 3 3

Minor assets 70 (52) 18 18 - 100.0% 51 51



Computer services 2 2 4 4 - 100.0% 143 143

Consultants: Business and advisory services - 188 188 188 - 100.0% - -

Contractors - - - - 0.0% 212 212

Entertainment - 1 1 1 - 100.0% - -

Consumable supplies 50 (22) 28 28 - 100.0% 2 2 Consumable: Stationery, printing and office supplies 30 34 64 64 - 100.0% 21 21



Training and development 100 (100) - - - 0.0% - -

Operating payments 430 (386) 44 44 - 100.0% - -




215

Subprogramme: 2.6: Integrated Transport Planning Administration Support

2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture



Transfers and subsidies - 119 - 119 103 16 86.6% 62 62

Households - 119 - 119 103 16 86.6% 62 62

Social benefits - 119 119 103 16 86.6% 62 62





Total 5,857 710 - 6,567 6,562 5 99.9% 6,067 6,066




216


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Rail Regulation 13,869 (3,475) - 10,394 10,394 - 100.0% 5,624 5,624

2.

Rail Infrastructure and Industry Development

10,825 1,966 950 13,741 13,740 1 100.0% 14,932 14,930

3. Rail Operations 7,108 2,810 - 9,918 9,919 (1) 100.0% 4,215 4,215

4. Rail Oversight 14,997,805 231 - 14,998,036 14,998,036 - 100.0% 11,205,628 11,205,628

5. Rail Administration Support 4,950 (1,532) - 3,418 3,418 - 100.0% 2,444 2,443

15,034,557 - 950 15,035,507 15,035,507 - 100.0% 11,232,843 11,232,840


Current payments 36,179 23 950 37,152 37,151 1 100.0% 27,018 27,013

Compensation of employees 20,270 (119) - 20,151 20,151 - 100.0% 13,402 13,400

Salaries and wages 18,571 (504) - 18,067 18,067 - 100.0% 11,956 11,954

Social contributions 1,699 385 - 2,084 2,084 - 100.0% 1,446 1,446

Goods and services 15,909 142 950 17,001 17,000 1 100.0% 13,616 13,613

Advertising 5 22 - 27 27 - 100.0% - -

Minor assets 35 316 - 351 350 1 99.7% 20 19

Catering: Departmental activities 37 (14) - 23 23 - 100.0% 27 27

Communication (G&S) 900 (589) - 311 311 - 100.0% 234 233




217


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Computer services - 1 - 1 1 - 100.0% 65 65

Consultants: Business and advisory services

13,383 104 950 14,437 14,437 - 100.0% 12,032 12,032

Contractors 100 (24) - 76 76 - 100.0% 2 2

Consumable supplies 153 (93) - 60 60 - 100.0% 183 183


95 19 - 114 114 - 100.0% 31 31

Operating leases 116 53 - 169 169 - 100.0% 59 58

Travel and subsistence 968 279 - 1,247 1,247 - 100.0% 793 793



Venues and facilities 65 7 - 72 72 - 100.0% 160 160

Transfers and subsidies 14,997,805 - - 14,997,805 14,997,805 - 100.0% 11,205,626 11,205,626

Departmental agencies and accounts 51,504 - - 51,504 51,504 - 100.0% 46,513 46,513

Departmental agencies (non-business entities)

51,504 - - 51,504 51,504 - 100.0% 46,513 46,513

Public corporations and private enterprises

14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Public corporations 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Subsidies on products and production (pc)

14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113



Other machinery and equipment 573 (23) - 550 550 - 100.0% 199 199




218


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Heritage assets - - - - - - 0.0% - -


Total 15,034,557 - 950 15,035,507 15,035,507 - 100.0% 11,232,843 11,232,840




219

Subprogramme: 3.1: Rail Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture







Advertising - 27 27 27 - 100.0% - -

Minor assets - - - - 0.0% 14 14

Catering: Departmental activities 2 2 2 - 100.0% 2 2

Communication (G&S) - 113 113 113 - 100.0% 86 86

Consultants: Business and advisory services 6,798 (3,536) 3,262 3,262 - 100.0% 700 700

Contractors - - - - 0.0% 2 2

Consumable supplies - - - - 0.0% 20 20

Consumable: Stationery, printing and office supplies - 17 17 17 - 100.0% 17 17

Operating leases - - - - 0.0% 55 54




Payments for capital assets - - - - - - 0.0% 91 91




220

Subprogramme: 3.1: Rail Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Machinery and equipment - - - - - - 0.0% 91 91

Other machinery and equipment - - 0.0% 91 91

Payment for financial assets - - 0.0% - 2

Total 13,869 (3,475) - 10,394 10,394 - 100.0% 5,624 5,624




221

Subprogramme: 3.2: Rail Infrastructure and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 10,825 1,917 950 13,692 13,691 1 100.0% 14,921 14,919


Salaries and wages 4,259 1,017 5,276 5,276 - 100.0% 4,067 4,066


Goods and services 6,200 766 950 7,916 7,915 1 100.0% 10,458 10,457

Minor assets - 23 23 22 1 95.7% - -



Consultants: Business and advisory services 5,985 740 950 7,675 7,675 - 100.0% 10,199 10,199

Consumable supplies - 1 1 1 - 100.0% 3 3







Total 10,825 1,966 950 13,741 13,740 1 100.0% 14,932 14,930




222

Subprogramme: 3.3: Rail Operations

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture






Goods and services 708 3,189 - 3,897 3,897 - 100.0% 1,362 1,362

Minor assets - - - - 0.0% 1 1


Consultants: Business and advisory services 600 2,900 3,500 3,500 - 100.0% 1,133 1,133




Operating payments - - - - 0.0% 2 2




Total 7,108 2,810 - 9,918 9,919 (1) 100.0% 4,215 4,215




223

Subprogramme: 3.4: Rail Oversight

2014/15 2013/14


Shifting of

funds

Virement


Actual Expen-diture

Variance


appro-priation


Actual Expen-diture


Current payments - 231 - 231 231 - 100.0% 2 2

Compensation of employees - 196 - 196 196 - 100.0% - -

Salaries and wages - 174 174 174 - 100.0%

Social contributions - 22 22 22 - 100.0%

Goods and services - 35 - 35 35 - 100.0% 2 2


Travel and subsistence - 31 31 31 - 100.0%

Transfers and subsidies 14,997,805 - - 14,997,805 14,997,805 - 100.0% 11,205,626 11,205,626


Departmental agencies (non-business entities) 51,504 51,504 51,504 - 100.0% 46,513 46,513

Public corporations and private enterprises 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Public corporations 14,946,301 - - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Subsidies on products and production (pc) 14,946,301 - 14,946,301 14,946,301 - 100.0% 11,159,113 11,159,113

Total 14,997,805 231 - 14,998,036 14,998,036 - 100.0% 11,205,628 11,205,628




224

Subprogramme: 3.5: Rail Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture






Goods and services 1,901 (596) - 1,305 1,305 - 100.0% 660 659

Advertising 5 (5) - - - 0.0% - -

Minor assets 35 293 328 328 - 100.0% 5 4


Communication (G&S) 900 (864) 36 36 - 100.0% 39 39

Computer services - 1 1 1 - 100.0% 65 65

Contractors 100 (24) 76 76 - 100.0% - -


Consumable: Stationery, printing and office supplies 95 2 97 97 - 100.0% 14 14



Training and development 50 51 101 101 - 100.0% - -

Operating payments 2 2 4 4 - 100.0% - -





225

Subprogramme: 3.5: Rail Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture





Total 4,950 (1,532) - 3,418 3,418 - 100.0% 2,444 2,443




226


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Road Regulation 30,788 13,230 164,733 208,751 521,945 (313,194) 250.0% 369,815 1,222,035

2.

Road Infrastructure and Industry Development

40,495 (4,658) - 35,837 35,837 - 100.0% 34,033 34,032

3. Road Oversight 21,550,663 (4,386) - 21,546,277 21,625,925 (79,648) 100.4% 19,480,276 19,396,802

4. Road Administration Support 10,378 (3,700) - 6,678 6,678 - 100.0% 6,729 6,340

5. Road Engineering Standards 12,963 (486) - 12,477 12,477 - 100.0% 6,356 6,355

21,645,287 - 164,733 21,810,020 22,202,862 (392,842) 101.8% 19,897,209 20,665,564


Current payments 99,657 (148) 164,733 264,242 577,429 (313,187) 218.5% 417,038 1,269,252


Salaries and wages 45,329 (8,845) - 36,484 36,484 - 100.0% 30,659 30,657

Social contributions 5,270 (849) - 4,421 4,421 - 100.0% 3,910 3,910

Goods and services 49,058 9,546 164,733 223,337 536,524 (313,187) 240.2% 382,469 1,234,685

Administrative fees 30 7 - 37 37 - 100.0% 10 19

Advertising 808 34 - 842 842 - 100.0% 1,363 1,257

Minor assets 120 48 - 168 168 - 100.0% 37 64




227


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Catering: Departmental activities 180 290 - 470 470 - 100.0% 127 94

Communication (G&S) 905 (195) - 710 710 - 100.0% 622 593

Computer services 659 947 - 1,606 1,606 - 100.0% 1,585 1,585


33,197 9,099 164,733 207,029 520,216 (313,187) 251.3% 363,746 1,215,963

Contractors 21 (14) - 7 7 - 100.0% 30 3

Agency and support / outsourced services

- - - - - - 0.0% - 7

Inventory: Clothing material and

accessories - 36 - 36 36 - 100.0% - -



366 1,189 - 1,555 1,555 - 100.0% 399 440

Operating leases 595 (420) - 175 175 - 100.0% 200 284

Travel and subsistence 8,589 534 - 9,123 9,123 - 100.0% 7,540 7,578



Venues and facilities 3,000 (2,126) - 874 874 - 100.0% 6,247 6,332

Transfers and subsidies 21,544,976 44 - 21,545,020 21,624,668 (79,648) 100.4% 19,479,314 19,395,839


Provinces 9,361,498 - - 9,361,498 9,361,498 - 100.0% 8,737,775 8,737,775


Municipalities 75,223 - - 75,223 75,223 - 100.0% 52,205 52,205




228


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Municipal bank accounts 75,223 - - 75,223 75,223 - 100.0% 52,205 52,205



12,108,255 - - 12,108,255 12,187,903 (79,648) 100.7% 10,689,130 10,605,657

Households - 44 - 44 44 - 100.0% 204 202

Social benefits - 44 - 44 44 - 100.0% 204 202

Payments for capital assets 654 104 - 758 758 - 100.0% 857 471

Machinery and equipment 654 104 - 758 758 - 100.0% 857 471

Other machinery and equipment 654 104 - 758 758 - 100.0% 857 471


Total 21,645,287 - 164,733 21,810,020 22,202,862 (392,842) 101.8% 19,897,209 20,665,564




229

Subprogramme: 4.1: Road Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 30,788 13,153 164,733 208,674 521,861 (313,187) 250.1% 369,755 1,221,973



Social contributions 2,290 (2) 2,288 2,288 - 100.0% 2,159 2,159

Goods and services 10,278 13,732 164,733 188,743 501,930 (313,187) 265.9% 351,281 1,203,500

Advertising 55 782 837 837 - 100.0% 982 982

Minor assets - 8 8 8 - 100.0% - -



Computer services 309 1,279 1,588 1,588 - 100.0% 1,576 1,576

Consultants: Business and advisory services 4,320 9,145 164,733 178,198 491,385 (313,187) 275.8% 336,185 1,188,404

Contractors 1 3 4 4 - 100.0% - -

Consumable supplies - 46 46 46 - 100.0% - -


155 1,127 1,282 1,282 - 100.0% 262 262




Operating payments 199 (40) 159 159 - 100.0% 172 172

Venues and facilities 50 (33) 17 17 - 100.0% 6,090 6,090




230

Subprogramme: 4.1: Road Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Transfers and subsidies - 44 - 44 44 - 100.0% - -

Households - 44 - 44 44 - 100.0% - -

Social benefits - 44 44 44 - 100.0%





Total 30,788 13,230 164,733 208,751 521,945 (313,194) 250.0% 369,815 1,222,035




231

Subprogramme: 4.2: Road Infrastructure and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture





Social contributions 1,228 (438) 790 790 - 100.0% 607 607


Administrative fees 10 (7) 3 3 - 100.0% - -

Advertising - - - - 0.0% 10 10

Catering: Departmental activities - 54 54 54 - 100.0% 2 2


Computer services - 1 1 1 - 100.0% - -


Contractors - 1 1 1 - 100.0% - -

Inventory: Clothing material and accessories - 36 36 36 - 100.0% - -

Consumable supplies 3 1 4 4 - 100.0% - -



Travel and subsistence 1,305 (79) 1,226 1,226 - 100.0% 656 656





232

Subprogramme: 4.2: Road Infrastructure and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture



Venues and facilities - 524 524 524 - 100.0% 58 58


Households - - - - - - 0.0% 71 71





Total 40,495 (4,658) - 35,837 35,837 - 100.0% 34,033 34,032




233

Subprogramme: 4.3: Road Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture

Variance


appro-priation


Actual Expen-diture




Salaries and wages 4,285 (3,185) 1,100 1,100 - 100.0% 909 909


Goods and services 1,000 (914) - 86 86 - 100.0% 64 64


Contractors 10 (10) - - - 0.0% - -


15 (15) - - - 0.0% - -

Operating leases 60 (60) - - - 0.0% 19 19


Operating payments 10 (10) - - - 0.0%

Venues and facilities 100 (100) - - - 0.0%

Transfers and subsidies 21,544,976 - - 21,544,976 21,624,624 (79,648) 100.4% 19,479,184 19,395,710


Provinces 9,361,498 - - 9,361,498 9,361,498 - 100.0% 8,737,775 8,737,775

Provincial Revenue Funds 9,361,498 9,361,498 9,361,498 - 100.0% 8,737,775 8,737,775

Municipalities 75,223 - - 75,223 75,223 - 100.0% 52,205 52,205

Municipal bank accounts 75,223 75,223 75,223 - 100.0% 52,205 52,205




234

Subprogramme: 4.3: Road Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture

Variance


appro-priation


Actual Expen-diture




12,108,255 12,108,255 12,187,903 (79,648) 100.7% 10,689,130 10,605,657

Households - - - - - - 0.0% 74 73


Total 21,550,663 (4,386) - 21,546,277 21,625,925 (79,648) 100.4% 19,480,276 19,396,802




235

Subprogramme: 4.4: Road Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture



Compensation of employees 4,021 300 - 4,321 4,321 - 100.0% 4,396 4,395




Administrative fees 20 8 28 28 - 100.0% 10 19

Advertising 753 (751) 2 2 - 100.0% 328 222

Minor assets 120 38 158 158 - 100.0% 36 63




Contractors 10 (8) 2 2 - 100.0% 30 3

Agency and support / outsourced services - - - - 0.0% - 7





Training and development 120 (41) 79 79 - 100.0% 250 56




236

Subprogramme: 4.4: Road Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Operating payments 70 (62) 8 8 - 100.0% - 11

Venues and facilities 2,850 (2,572) 278 278 - 100.0% 89 174


Households - - - - - - 0.0% 59 58




Other machinery and equipment 654 52 706 706 - 100.0% 699 313

Total 10,378 (3,700) - 6,678 6,678 - 100.0% 6,729 6,340




237

Subprogramme: 4.5: Road Engineering Standards

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 12,963 (486) - 12,477 12,477 - 100.0% 6,356 6,355





Administrative fees - 6 6 6 - 100.0% - -

Advertising - 3 3 3 - 100.0% 43 43

Minor assets - 2 2 2 - 100.0% 1 1

Catering: Departmental activities - 12 12 12 - 100.0% - -


Consultants: Business and advisory services 2,550 463 3,013 3,013 - 100.0% 176 175



Travel and subsistence 1,240 259 1,499 1,499 - 100.0% 870 870




Total 12,963 (486) - 12,477 12,477 - 100.0% 6,356 6,355




238


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Aviation Policy and Regulations 23,422 2,659 - 26,081 26,101 (20) 100.1% 27,410 27,408

2.

Aviation Economic Analysis and Industry Development

11,333 (2,285) - 9,048 9,048 - 100.0% 8,483 8,482

3.

Aviation Safety, Security Environment and Search and Rescue

68,167 (3,516) - 64,651 64,651 - 100.0% 61,796 61,795

4. Aviation Oversight 39,729 (1,483) - 38,246 37,789 457 98.8% 35,395 35,051

5. Aviation Administration Support 5,620 4,625 10,564 20,809 23,377 (2,568) 112.3% 7,669 7,669

6. Mthatha Airport 2,131 - - 2,131 - 2,131 0.0% 104,762 8,197

150,402 - 10,564 160,966 160,966 - 100.0% 245,515 148,602


Current payments 113,075 (590) 10,564 123,049 123,473 (424) 100.3% 202,330 105,765


Salaries and wages 33,226 (4,049) - 29,177 29,177 - 100.0% 28,116 28,114

Social contributions 2,834 371 - 3,205 3,205 - 100.0% 3,162 3,162

Goods and services 77,015 3,088 10,564 90,667 91,091 (424) 100.5% 171,052 74,489

Administrative fees - 1 - 1 1 - 100.0% - -

Advertising 255 426 - 681 681 - 100.0% 849 849




239


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Minor assets 252 (41) - 211 211 - 100.0% 277 277

Catering: Departmental activities 177 (10) - 167 167 - 100.0% 194 194

Communication (G&S) 52,907 51 - 52,958 52,958 - 100.0% 53,072 53,072



14,186 (6,652) - 7,534 5,403 2,131 71.7% 100,342 3,780

Contractors 1,690 (1,393) - 297 297 - 100.0% 656 656



595 (282) - 313 313 - 100.0% 439 439

Operating leases 419 1,213 - 1,632 1,632 - 100.0% 1,207 1,207

Transport provided: Departmental activity

- 173 - 173 173 - 100.0% - -

Travel and subsistence 6,324 3,509 - 9,833 9,833 - 100.0% 7,196 7,196

Training and development 50 (41) - 9 9 - 100.0% 68 68

Operating payments - 5,442 10,564 16,006 18,561 (2,555) 116.0% 65 65

Venues and facilities 90 701 - 791 791 - 100.0% 6,449 6,448

Transfers and subsidies 36,900 114 - 37,014 36,556 458 98.8% 34,231 33,887



26,126 - - 26,126 26,126 - 100.0% 24,652 24,652

Foreign governments and international organisations

8,466 - - 8,466 8,008 458 94.6% 8,000 7,658

Non-profit institutions 2,308 - - 2,308 2,308 - 100.0% 1,515 1,515




240


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Households - 114 - 114 114 - 100.0% 64 62

Social benefits - 14 - 14 14 - 100.0% 64 62

Other transfers to households - 100 - 100 100 - 100.0% - -

Payments for capital assets 427 476 - 903 903 - 100.0% 8,954 8,950


Other fixed structures - - - - - - 0.0% 8,200 8,197



Payment for financial assets - - - - 34 (34) 0.0% - -

150,402 - 10,564 160,966 160,966 - 100.0% 245,515 148,602




241

Subprogramme: 5.1: Aviation Policy and Regulations

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture





Social contributions 1,043 280 1,323 1,323 - 100.0% 1,359 1,359


Advertising - 31 31 31 - 100.0% 38 38

Minor assets 70 46 116 116 - 100.0% 75 75



Computer services - 1 1 1 - 100.0% 1 1


Contractors 1,500 (1,329) 171 171 - 100.0% 152 152



Operating leases 70 1,369 1,439 1,439 - 100.0% 943 943



Venues and facilities - 484 484 484 - 100.0% 5,792 5,792




242

Subprogramme: 5.1: Aviation Policy and Regulations

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture



Households - - - - - - 0.0% 42 41






Total 23,422 2,659 - 26,081 26,101 (20) 100.1% 27,410 27,408




243

Subprogramme: 5.2: Aviation Economic Analysis and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture







Advertising 30 519 549 549 - 100.0% 626 626

Minor assets 5 7 12 12 - 100.0% 116 116



Computer services - - - - 0.0% 34 34


Contractors - - - - 0.0% 1 1




Transport provided: Departmental activity - 63 63 63 - 100.0% - -

Travel and subsistence 524 183 707 707 - 100.0% 1,102 1,102





244

Subprogramme: 5.2: Aviation Economic Analysis and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Operating payments - 398 398 398 - 100.0% - -



Households - 114 - 114 114 - 100.0% 10 10

Social benefits - 14 14 14 - 100.0% 10 10

Other transfers to households - 100 100 100 - 100.0%




Total 11,333 (2,285) - 9,048 9,048 - 100.0% 8,483 8,482




245

Subprogramme: 5.3: Aviation Safety, Security Environment and Search and Rescue

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture







Advertising 220 (119) 101 101 - 100.0% 185 185

Minor assets 72 (39) 33 33 - 100.0% 73 73


Communication (G&S) 52,585 2 52,587 52,587 - 100.0% 52,666 52,666

Computer services - 7 7 7 - 100.0% - -

Consultants: Business and advisory services 3,743 (3,623) 120 120 - 100.0% 142 142

Contractors 100 6 106 106 - 100.0% 439 439






Training and development 50 (50) - - - 0.0% - -




246

Subprogramme: 5.3: Aviation Safety, Security Environment and Search and Rescue

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture





Households - - - - - - 0.0% 12 11





Total 68,167 (3,516) - 64,651 64,651 - 100.0% 61,796 61,795




247

Subprogramme: 5.4: Aviation Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture




Salaries and wages 2,225 (1,234) 991 991 - 100.0% 896 895


Goods and services 400 (206) - 194 194 - 100.0% 159 158

Administrative fees - 1 1 1 - 100.0% - -

Minor assets 80 (43) 37 37 - 100.0% 4 4







Transfers and subsidies 36,900 - - 36,900 36,442 458 98.8% 34,167 33,825



Foreign governments and international organisations 8,466 8,466 8,008 458 94.6% 8,000 7,658

Non-profit institutions 2,308 2,308 2,308 - 100.0% 1,515 1,515




248

Subprogramme: 5.4: Aviation Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture






Total 39,729 (1,483) - 38,246 37,789 457 98.8% 35,395 35,051




249

Subprogramme: 5.5: Aviation Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 5,483 4,618 10,564 20,665 23,220 (2,555) 112.4% 7,516 7,516




Goods and services 1,684 3,948 10,564 16,196 18,751 (2,555) 115.8% 2,222 2,222

Advertising 5 (5) - - - 0.0% - -

Minor assets 25 (12) 13 13 - 100.0% 9 9




Contractors 90 (70) 20 20 - 100.0% 64 64

Consumable supplies 20 6 26 26 - 100.0% 11 11



Travel and subsistence 1,014 (430) 584 584 - 100.0% 1,363 1,363


Operating payments - 4,804 10,564 15,368 17,923 (2,555) 116.6% 1 1





250

Subprogramme: 5.5: Aviation Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture






Total 5,620 4,625 10,564 20,809 23,377 (2,568) 112.3% 7,669 7,669




251

Subprogramme: 5.6: Mthatha Airport

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 2,131 - - 2,131 - 2,131 0.0% 96,562 -

Goods and services 2,131 - - 2,131 - 2,131 0.0% 96,562 -

Consultants: Business and advisory services 2,131 2,131 - 2,131 0.0% 96,562 -

Payments for capital assets - - - - - - 0.0% 8,200 8,197


Other fixed structures - - 0.0% 8,200 8,197

Total 2,131 - - 2,131 - 2,131 0.0% 104,762 8,197




252


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Maritime Policy Development 11,252 1,736 (1,600) 11,388 11,069 319 97.2% 9,247 9,246

2.

Maritime Infrastructure and Industry Development

10,920 (1,733) (2,696) 6,491 6,453 38 99.4% 5,921 5,921

3.

Implementation, Monitoring and Evaluations

62,606 (190) (3,621) 58,795 58,763 32 99.9% 60,086 60,085

4. Maritime Oversight 20,657 - (930) 19,727 18,638 1,089 94.5% 24,763 23,480

5. Maritime Administration Support 5,154 187 - 5,341 4,700 641 88.0% 3,540 3,539

110,589 - (8,847) 101,742 99,623 2,119 97.9% 103,557 102,271


Current payments 91,774 (204) (8,847) 82,723 81,445 1,278 98.5% 79,057 79,055


Salaries and wages 21,628 (1,019) (2,794) 17,815 17,815 - 100.0% 14,967 14,965

Social contributions 495 815 473 1,783 1,783 - 100.0% 1,565 1,565

Goods and services 69,651 - (6,526) 63,125 61,847 1,278 98.0% 62,525 62,525

Administrative fees 30 - - 30 - 30 0.0% - -

Advertising 1,651 65 (468) 1,248 1,210 38 97.0% 848 848

Minor assets 300 (275) 129 154 154 - 100.0% 254 254




253


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Catering: Departmental activities 350 - 10 360 310 50 86.1% 91 91

Communication (G&S) 315 (139) 189 365 282 83 77.3% 283 283

Computer services - - - - - - 0.0% 5 5


60,095 - (7,700) 52,395 52,209 186 99.6% 52,946 52,946

Contractors 45 - - 45 17 28 37.8% 63 63

Consumable supplies 10 - 3 13 9 4 69.2% 143 143


190 - 203 393 372 21 94.7% 633 633

Operating leases 790 3 685 1,478 1,409 69 95.3% 1,015 1,015

Travel and subsistence 4,880 (6) 302 5,176 4,650 526 89.8% 5,228 5,228

Training and development 150 - 97 247 115 132 46.6% 153 153

Operating payments 175 - 153 328 217 111 66.2% 165 165

Venues and facilities 670 352 (129) 893 893 - 100.0% 698 698

Transfers and subsidies 18,468 40 - 18,508 17,667 841 95.5% 23,876 22,593



16,852 - - 16,852 16,852 - 100.0% 22,304 22,304


1,616 - - 1,616 775 841 48.0% 1,525 242

Households - 40 - 40 40 - 100.0% 47 47

Social benefits - 40 - 40 40 - 100.0% 47 47




254


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000




110,589 - (8,847) 101,742 99,623 2,119 97.9% 103,557 102,271

Subprogramme: 6.1: Maritime Policy Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 11,252 1,702 (1,600) 11,354 11,035 319 97.2% 9,095 9,094




Goods and services 5,888 - (1,600) 4,288 3,969 319 92.6% 3,603 3,603




255

Subprogramme: 6.1: Maritime Policy Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Minor assets - 45 45 45 - 100.0% 97 97




Consultants: Business and advisory services 3,383 (2,721) 662 508 154 76.7% 560 560

Contractors 45 45 17 28 37.8% 3 3



Operating leases 600 668 1,268 1,268 - 100.0% 779 779

Travel and subsistence 1,480 1,480 1,343 137 90.7% 1,362 1,362



Venues and facilities - - 0.0% 5 5


Households - 34 - 34 34 - 100.0% - -





Total 11,252 1,736 (1,600) 11,388 11,069 319 97.2% 9,247 9,246




256

Subprogramme: 6.2: Maritime Infrastructure and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 10,920 (1,751) (2,696) 6,473 6,435 38 99.4% 5,781 5,781

Compensation of employees 5,869 (1,751) (296) 3,822 3,822 - 100.0% 3,346 3,346

Salaries and wages 5,759 (2,023) (296) 3,440 3,440 - 100.0% 3,002 3,002



Advertising 1,101 (450) 651 613 38 94.2% 710 710

Minor assets - 75 75 75 - 100.0% 68 68



Consultants: Business and advisory services 2,500 (2,171) 329 329 - 100.0% - -


Consumable: Stationery, printing and office supplies - - - - 0.0% 1 1

Operating leases - 12 12 12 - 100.0% 9 9








257

Subprogramme: 6.2: Maritime Infrastructure and Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture



Households - 6 - 6 6 - 100.0% - -





Total 10,920 (1,733) (2,696) 6,491 6,453 38 99.4% 5,921 5,921




258

Subprogramme: 6.3: Implementation, Monitoring and Evaluations

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 62,606 (204) (3,621) 58,781 58,749 32 99.9% 59,901 59,900


Salaries and wages 6,013 (204) (1,475) 4,334 4,334 - 100.0% 4,225 4,224



Advertising 500 (18) 482 482 - 100.0% 137 137

Minor assets - 9 9 9 - 100.0% 34 34




Consultants: Business and advisory services 54,212 (2,808) 51,404 51,372 32 99.9% 52,084 52,084

Contractors - - - - 0.0% 17 17



Operating leases - 5 5 5 - 100.0% - -

Travel and subsistence 1,710 71 1,781 1,781 - 100.0% 2,434 2,434






259

Subprogramme: 6.3: Implementation, Monitoring and Evaluations

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture




Households - - - - - - 0.0% 47 47





Total 62,606 (190) (3,621) 58,795 58,763 32 99.9% 60,086 60,085




260

Subprogramme: 6.4: Maritime Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 2,189 - (930) 1,259 1,011 248 80.3% 912 912

Compensation of employees 1,899 - (930) 969 969 - 100.0% 831 831

Salaries and wages 1,878 (1,023) 855 855 - 100.0% 734 734


Goods and services 290 - - 290 42 248 14.5% 81 81

Minor assets - - - - 0.0% 22 22



Travel and subsistence 290 (6) 284 36 248 12.7% 45 45

Transfers and subsidies 18,468 - - 18,468 17,627 841 95.4% 23,829 22,546



Foreign governments and international organisations 1,616 1,616 775 841 48.0% 1,525 242




Total 20,657 - (930) 19,727 18,638 1,089 94.5% 24,763 23,480




261

Subprogramme: 6.5: Maritime Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 4,807 49 - 4,856 4,215 641 86.8% 3,368 3,368




Goods and services 2,000 - - 2,000 1,359 641 68.0% 1,251 1,251

Administrative fees 30 30 - 30 0.0% - -

Advertising 50 65 115 115 - 100.0% 1 1

Minor assets 300 (275) 25 25 - 100.0% 33 33

Catering: Departmental activities 50 50 - 50 0.0% 4 4

Communication (G&S) 290 (142) 148 65 83 43.9% 121 121


Consultants: Business and advisory services - - - - 0.0% 302 302

Contractors - - - - 0.0% 43 43


Consumable: Stationery, printing and office supplies 190 190 169 21 88.9% 82 82

Operating leases 190 190 121 69 63.7% 220 220

Travel and subsistence 450 450 309 141 68.7% 254 254

Training and development 150 150 18 132 12.0% 20 20

Operating payments 120 120 9 111 7.5% - -






262

Subprogramme: 6.5: Maritime Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture




Total 5,154 187 - 5,341 4,700 641 88.0% 3,540 3,539




263


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme

1. Public Transport Regulation 20,865 (6,895) - 13,970 13,970 - 100.0% 16,931 12,930

2. Rural and Scholar Transport 13,118 791 (166) 13,743 13,744 (1) 100.0% 10,930 7,216

3. Public Transport Industry Development 121,454 (77) (3,027) 118,350 118,362 (12) 100.0% 111,679 111,678

4. Public Transport Oversight 11,145,566 (59) (123,445) 11,022,062 11,021,155 907 100.0% 10,350,786 10,350,785

5.

Public Transport Administration Support

10,755 11,071 - 21,826 21,826 - 100.0% 19,525 18,669

6. Public Transport Network Development 12,013 (4,831) (562) 6,620 6,620 - 100.0% 4,339 4,338

11,323,771 - (127,200) 11,196,571 11,195,677 894 100.0% 10,514,190 10,505,616




Salaries and wages 34,869 1,896 331 37,096 37,096 - 100.0% 31,964 31,962

Social contributions 6,772 (2,100) (497) 4,175 4,175 - 100.0% 3,572 3,571

Goods and services 136,388 - (3,589) 132,799 132,799 - 100.0% 127,315 118,751

Advertising 160 (103) - 57 57 - 100.0% 156 156

Minor assets 390 (249) - 141 141 - 100.0% 253 260

Catering: Departmental activities 50 20 4 74 74 - 100.0% 72 39




264


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Communication (G&S) 253 229 67 549 549 - 100.0% 588 510



128,805 (4,548) (3,514) 120,743 120,743 - 100.0% 113,662 107,079

Contractors 62 (4) - 58 58 - 100.0% 42 14

Consumable supplies 105 (62) 1 44 44 - 100.0% 172 143


290 (120) 6 176 176 - 100.0% 1,123 1,070

Operating leases 150 (61) - 89 89 - 100.0% 939 137

Transport provided: Departmental activity

- 457 - 457 457 - 100.0% - -

Travel and subsistence 5,308 3,706 (306) 8,708 8,708 - 100.0% 8,153 8,153



Venues and facilities 690 689 153 1,532 1,532 - 100.0% 1,084 1,084

Transfers and subsidies 11,145,566 - (123,445) 11,022,121 11,021,214 907 100.0% 10,350,765 10,350,764


Provinces 4,832,709 - - 4,832,709 4,832,709 - 100.0% 4,552,521 4,552,521


Municipalities 5,870,846 - - 5,870,846 5,870,846 - 100.0% 5,549,981 5,549,981

Municipal bank accounts 5,870,846 - - 5,870,846 5,870,846 - 100.0% 5,549,981 5,549,981

Non-profit institutions 18,407 - - 18,407 17,500 907 95.1% 17,365 17,365




265


2014/15 2013/14


Shifting of funds

Virement Final

Appro-priation

Actual Expen-diture

Variance


appro-priation


Actual Expen-diture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Households 423,604 - (123,445) 300,159 300,159 - 100.0% 230,898 230,897

Social benefits - 96 - 96 96 - 100.0% - -

Other transfers to households 423,604 (96) (123,445) 300,063 300,063 - 100.0% 230,898 230,897




Payment for financial assets - - - - 13 (13) 0.0% - -

Total 11,323,771 - (127,200) 11,196,571 11,195,677 894 100.0% 10,514,190 10,505,616

Subprogramme: 7.1: Public Transport Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture







266

Subprogramme: 7.1: Public Transport Regulation

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture



Social contributions 1,940 (801) 1,139 1,139 - 100.0% 987 986


Advertising - - - - 0.0% 44 44

Minor assets - - - - 0.0% - 7

Catering: Departmental activities - - - - 0.0% 50 18



Consumable: Stationery, printing and office supplies - - - - 0.0% 107 64


Travel and subsistence 1,000 (632) 368 368 - 100.0% 1,025 1,025



Total 20,865 (6,895) - 13,970 13,970 - 100.0% 16,931 12,930




267

Subprogramme: 7.2: Rural and Scholar Transport

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 13,118 791 (166) 13,743 13,743 - 100.0% 10,877 7,163



Social contributions 1,477 (208) (497) 772 772 - 100.0% 632 632


Minor assets - - - - 0.0% 12 12

Catering: Departmental activities - 8 8 8 - 100.0% - -



Consultants: Business and advisory services 5,593 1,091 6,684 6,684 - 100.0% 4,585 888

Contractors 2 (2) - - - 0.0% - -

Consumable supplies - 1 1 1 - 100.0% 7 -

Consumable: Stationery, printing and office supplies - - - - 0.0% 10 -









268

Subprogramme: 7.2: Rural and Scholar Transport

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture




Total 13,118 791 (166) 13,743 13,744 (1) 100.0% 10,930 7,216

Subprogramme: 7.3: Public Transport Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture





Social contributions 1,750 (455) 1,295 1,295 - 100.0% 1,077 1,077

Goods and services 109,912 (1,200) (3,027) 105,685 105,685 - 100.0% 101,359 101,358

Minor assets - - - - 0.0% 1 1

Catering: Departmental activities - 4 4 4 - 100.0% 1 -






269

Subprogramme: 7.3: Public Transport Industry Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Contractors - - - - 0.0% 2 2

Consumable supplies - 1 1 1 - 100.0% - -





Households - 96 - 96 96 - 100.0% - -






Total 121,454 (77) (3,027) 118,350 118,362 (12) 100.0% 111,679 111,678




270

Subprogramme: 7.4: Public Transport Oversight

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments - 37 - 37 37 - 100.0% 21 21

Goods and services - 37 - 37 37 - 100.0% 21 21

Communication (G&S) 5 5 5 - 100.0% 21 21

Travel and subsistence 32 32 32 - 100.0%

Transfers and subsidies 11,145,566 (96) (123,445) 11,022,025 11,021,118 907 100.0% 10,350,765 10,350,764


Provinces 4,832,709 - - 4,832,709 4,832,709 - 100.0% 4,552,521 4,552,521

Provincial Revenue Funds 4,832,709 4,832,709 4,832,709 - 100.0% 4,552,521 4,552,521

Municipalities 5,870,846 - - 5,870,846 5,870,846 - 100.0% 5,549,981 5,549,981

Municipal bank accounts 5,870,846 5,870,846 5,870,846 - 100.0% 5,549,981 5,549,981

Non-profit institutions 18,407 18,407 17,500 907 95.1% 17,365 17,365

Households 423,604 (96) (123,445) 300,063 300,063 - 100.0% 230,898 230,897

Other transfers to households 423,604 (96) (123,445) 300,063 300,063 - 100.0% 230,898 230,897

Total 11,145,566 (59) (123,445) 11,022,062 11,021,155 907 100.0% 10,350,786 10,350,785




271

Subprogramme: 7.5: Public Transport Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture







Advertising 160 (103) 57 57 - 100.0% 112 112

Minor assets 390 (249) 141 141 - 100.0% 240 240




Consultants: Business and advisory services 1,500 3,012 4,512 4,512 - 100.0% 4,736 4,115

Contractors 60 (2) 58 58 - 100.0% 40 12


Consumable: Stationery, printing and office supplies 290 (120) 170 170 - 100.0% 1,000 1,000




Training and development 20 22 42 42 - 100.0% 215 37




272

Subprogramme: 7.5: Public Transport Administration Support

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Operating payments 55 (30) 25 25 - 100.0% 12 12

Venues and facilities 690 553 1,243 1,243 - 100.0% 681 681




Total 10,755 11,071 - 21,826 21,826 - 100.0% 19,525 18,669

Subprogramme: 7.6: Public Transport Network Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Current payments 12,013 (4,831) (562) 6,620 6,620 - 100.0% 4,339 4,338



Social contributions 1,060 (776) 284 284 - 100.0% 241 241




273

Subprogramme: 7.6: Public Transport Network Development

2014/15 2013/14


Shifting of

funds


Actual Expen-diture


appro-priation


Actual Expen-diture


Goods and services 5,500 (2,384) (562) 2,554 2,554 - 100.0% 434 434

Catering: Departmental activities - - - - 0.0% 2 2


Consultants: Business and advisory services 5,000 (2,054) (562) 2,384 2,384 - 100.0% - -




Total 12,013 (4,831) (562) 6,620 6,620 - 100.0% 4,339 4,338


NOTES TO THE APPROPRIATION STATEMENT


274

1 Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies and Annexure 1 (A-H) to the Annual Financial Statements.

2 Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3 Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Financial Statements.

4 Explanations of material variances from Amounts Voted (after virement):

4.1 Per programme: Final Appropriation

Actual Expenditure

Variance Variance as a %

of Final Approp.

R’000 R’000 R’000 %

Programme name

Administration 390,889 377,489 13,400 3.4%

The programme under spent R9.3 million on goods and services, mainly because the use of consultants were reduced to address audit and legal issues, to improve the Programme Management Unit, to develop a performance management system and to continue the restructuring of the Road Accident Fund. R3.3 million was not transferred to higher education institutions because a university discontinued its administration of these funds, which was requested as a rollover. R0.8 million was under spent on compensation of employees.

Programme name

Integrated Transport Planning 74,974 74,974 - 0.0%

Under expenditure in the programme was shifted to to the programme: Road Transport. Before the virement, goods and services was under spent mainly because of under expenditure on the National Transport Planning Databank, and R3.4 million could be shifted to the programme: Road Transport.




275

Per programme: Final Appropriation

Actual Expenditure

Variance Variance as a %

of Final Approp.

R’000 R’000 R’000 %

Programme name

Rail Transport 15,035,507 15,035,507 - 0.0%

Rail Transport over spent its budget by R0.9 million because of excess expenditure on the Moloto Development Corridor. Funds were shifted across programmes to cover the shortfall.

Programme name

Road Transport 21,810,020 22,202,862 (392,842) -1.8%

The programme over spent its budget by R392.8 million as follows: R313.2 million was over spent because the cost of maintenance and operations of the Electronic National Traffic Information System (eNaTIS) could not be recovered from transaction fees that belong to the Road Traffic Management Corporation (RTMC). R83.4 million was over spent on transfers that were not paid to the RTMC in 2013/14, which was paid in 2014/15. The programme also under spent a transfer payment to the Road Traffic Infringements Agency (RTIA) of R3.8 million, which was claimed late. This amount was requested as a rollover.

Programme name

Civil Aviation 160,966 160,966 - 0.0%

The budget was over spent by R10.6 million because the cost of repatriating bodies of South Africans who died in a building that collapsed in Nigeria was not funded. Funds were shifted across programmes to cover the shortfall.

Programme name

Maritime Transport 101,742 99,623 2,119 2.1%

The budget for goods and services was under spent by R1.3 million because a number of projects were not undertaken in the year. Foreign membership fees were underspent by R0.8 million that was not claimed during the year.




276

Per programme: Final

Appropriation Actual

Expenditure Variance Variance as a

% of Final Approp.

R’000 R’000 R’000 %

Programme name

Public Transport 11,196,571 11,195,677 894 0.0%

The budget was under spent by R0.9 million because a non-profit institution under claimed a transfer payment. Under expenditure in the programme was shifted to the programme: Road Transport as follows: Less taxis were scrapped in the year than budgeted for causing an under expenditure of R123.4 million, and goods and services was under spent by R3.6 million on a range of projects.

4.2 Per economic classification: Final Appropriation

Actual Expenditure

Variance Variance as a %of Final Approp.

R’000 R’000 R’000 %

Current expenditure

Compensation of employees 346,697 345,900 797 0.2%

Goods and services 781,148 1,084,142 (302,994) -38.8%

Transfers and subsidies

Provinces and municipalities 20,140,276 20,140,276 - 0.0%

Departmental agencies and accounts

12,203,888 12,283,363 (79,475) -0.7%

Higher education institutions 10,790 7,509 3,281 30.4%

Public corporations and private enterprises

14,946,301 14,946,301 - 0.0%


10,082 8,783 1,299 12.9%

Non-profit institutions 20,715 19,808 907 4.4%

Households 300,775 300,759 16 0.0%

Payments for capital assets

Machinery and equipment 9,997 9,997 - 0.0%

Payments for financial assets 260 (260) N/a

Compensation of employees:

Compensation of employees was under spent because not all posts could be filled.




277

Goods and services:

Goods and services was over spent because the cost of maintenance and operations of the Electronic National Traffic Information System (eNaTIS) is not budgeted for.

Transfers and subsidies:

Departmental agencies and accounts:

R83.4 million was over spent on transfers that were not paid to the Road Traffic Management Corporation in 2013/14, which was paid in 2014/15. The programme also under spent a transfer payment to the Road Traffic Infringements Agency (RTIA) of R3.8 million, which was claimed late. This amount was requested as a rollover.

Higher education institutions:

R3.3 million was not transferred to higher education institutions because a university discontinued its administration of these funds.

Foreign governments and international organisations:

Foreign membership fees of R1.3 million were not claimed during the year.

Non-profit institutions:

A non-profit institution under claimed a transfer payment by R907,000.

Households:

Households was under spent by R123.4 million because less taxis were scrapped in the year than budgeted for. The amount was shifted to the programme: Road Transport to reduce its unauthorised expenditure.

Payments for financial assets:

The department incurred losses totaling R260,000 due to theft of equipment (R178,000), a legal settlement (R50,000), the write off of equipment (R13,000), and losses written off for travel and subsistence (R11,000) and overpayments (R8,000).




278

4.3 Per conditional grant Final Appropriation

Actual Expenditure

Variance Variance as a %of Final Approp.

R’000 R’000 R’000 %

Provincial Road Maintenance - Coal Haulage Grant

803,002 803,002 - 0.0%

Provincial Road Maintenance - Disaster Management Grant

602,251 602,251 - 0.0%

Provincial Road Maintenance Grant

7,956,245 7,956,245 - 0.0%

Public Transport Operations Grant 4,832,709 4,832,709 - 0.0%

Public Transport Infrastructure and Systems Grant

4,678,032 4,678,032 - 0.0%

Public Transport Network Operations Grant

1,192,814 1,192,814 - 0.0%

Rural Road Asset Management Grant

75,223 75,223 - 0.0%


STATEMENT OF FINANCIAL PERFORMANCE


279

2014/15

2013/14

Note

R'000

R'000

REVENUE Annual appropriation

1

48,770,669

42,401,667

Departmental revenue

2

322,107

746,967

TOTAL REVENUE

49,092,776

43,148,634

EXPENDITURE

Current expenditure

Compensation of employees

3

345,900

304,359

Goods and services

4

1,084,142

1,692,167

Total current expenditure

1,430,042

1,996,526



6

47,706,799

41,020,379

Total transfers and subsidies

47,706,799

41,020,379

Expenditure for capital assets

Tangible assets

7

9,997

19,859

Total expenditure for capital assets

9,997

19,859

Payments for financial assets

5

260

80

TOTAL EXPENDITURE

49,147,098

43,036,844

SURPLUS/(DEFICIT) FOR THE YEAR

(54,322)

111,790

Reconciliation of Net Surplus/(Deficit) for the year

Voted Funds

(376,429)

(635,177)

Annual appropriation

(376,429)

(635,177)

-

Departmental revenue and NRF Receipts

14

322,107

746,967

SURPLUS/(DEFICIT) FOR THE YEAR

(54,322)

111,790


STATEMENT OF FINANCIAL POSITION


280

2014/15

2013/14

Note

R'000

R'000

ASSETS

Current Assets

2,446,667

2,052,350

Unauthorised expenditure

8

2,368,571

1,975,729

Cash and cash equivalents

9

2,833

57

Prepayments and advances

10

42,359

41,339

Receivables

11

32,904

35,225

Non-Current Assets

6,089,441

6,089,441

Investments

12

6,089,441

6,089,441

TOTAL ASSETS

8,536,108

8,141,791

LIABILITIES

Current Liabilities

2,446,205

2,051,622

Voted funds to be surrendered to the Revenue Fund

13

16,413

127,575

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

14

128

272,336

Bank overdraft

15

2,427,064

1,651,499

Payables

16

2,600

212

Non-Current Liabilities Payables

17

29

540

TOTAL LIABILITIES

2,446,234

2,052,162

NET ASSETS

6,089,874

6,089,629

Represented by: Capitalisation reserve

6,089,441

6,089,441

Recoverable revenue

433

188

TOTAL

6,089,874

6,089,629


STATEMENT OF CHANGES IN NET ASSETS


281

NET ASSETS

2014/15

2013/14

Note

R'000

R'000

Capitalisation Reserves Opening balance

6,089,441

6,089,441

Closing balance

6,089,441

6,089,441

Recoverable revenue Opening balance

188

209

Transfers

245

(21)

Debts revised

(33)

(31) Debts recovered (included in departmental receipts)

(128)

(197)

Debts raised

406

207

Closing balance

433

188

TOTAL

6,089,874

6,089,629


CASH FLOW STATEMENT


282

2014/15

2013/14

Note

R'000

R'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

48,868,979

43,074,701

Annual appropriated funds received

1.1

48,770,669

42,401,667

Departmental revenue received

2.1; 2.3

91,373

672,960

Interest received

2.2

6,937

74

Net (increase)/ decrease in working capital

(389,153)

(92,681)

Surrendered to Revenue Fund

(721,890)

(793,717)

Current payments

(1,037,200)

(1,228,171)


(260)

(80)

Transfers and subsidies paid

(47,706,799)

(41,020,379)

Net cash flow available from operating activities 18

(986,323)

(60,327)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets

7

(9,997)

(19,859)

Net cash flows from investing activities

(9,997)

(19,859)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received

223,797

73,933

Increase/ (decrease) in net assets

245

(21)

Increase/ (decrease) in non-current payables

(511)

511

Net cash flows from financing activities

223,531

74,423

Net increase/ (decrease) in cash and cash equivalents

(772,789)

(5,763)

Cash and cash equivalents at beginning of period

(1,651,442)

(1,645,679)

Cash and cash equivalents at end of period

19

(2,424,231)

(1,651,442)


ACCOUNTING POLICIES for the year ended 31 March 2015

283

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the

usefulness of the financial statements and to comply with the statutory requirements of the

Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and

the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue

Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash

Standard.

2 Going concern

The financial statements have been prepared on a going concern basis.

3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is

also the functional currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one

thousand Rand (R’000).

5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African

Rands using the exchange rates prevailing at the date of payment / receipt.

6 Comparative information

6.1 Prior period comparative information

Prior period comparative information has been presented in the current year’s financial

statements. Where necessary figures included in the prior period financial statements

have been reclassified to ensure that the format in which the information is presented is

consistent with the format of the current year’s financial statements.



284

6.2 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each

programme and economic classification is included in the appropriation statement.

7 Revenue

7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges

against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the

date the appropriation becomes effective. Adjustments made in terms of the

adjustments budget process are recognised in the statement of financial performance

on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at

the reporting date is recognised as a payable / receivable in the statement of financial

position.

7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when

received and is subsequently paid into the relevant revenue fund, unless stated

otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a

payable in the statement of financial position.

7.3 Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in

the notes to the financial statements when:

it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and

the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts

receivable from collecting agents.



285

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the

date of payment.

8.1.2 Social contributions

Social contributions made by the department in respect of current employees are

recognised in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified

as transfers to households in the statement of financial performance on the date of

payment.

8.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments

for capital assets) is recognised in the statement of financial performance on the date of

payment. The expense is classified as a capital expense if the total consideration paid

is more than the capitalisation threshold.

8.3 Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the financial statements when

the goods are received or, in the case of services, when they are rendered to the

department.

Accrued expenditure payable is measured at cost.

8.4 Leases

8.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current

expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements.



286

8.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital

expenditure in the statement of financial performance on the date of payment.

The finance lease commitments are recorded in the notes to the financial statements

and are not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured

at the lower of:

cost, being the fair value of the asset; or

the sum of the minimum lease payments made, including any payments made to

acquire ownership at the end of the lease term, excluding interest.

9 Aid Assistance

9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance

when received. In-kind aid assistance is recorded in the notes to the financial

statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid

assistance that are required to be refunded to the donor are recognised as a payable

in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date

of payment. Aid assistance payments made prior to the receipt of funds are recognised

as a receivable in the statement of financial position.

10 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash

on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

11 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when

the department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

Prepayments are expensed when the service was delivered and invoiced.



287

12 Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus

accrued interest, where interest is charged, less amounts already settled or written-off.

13 Investments

Investments are recognised in the statement of financial position at cost.

14 Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the

reduction in the recorded carrying value, to reflect the best estimate of the amount of

the future economic benefits expected to be received from that asset, is recorded in the

notes to the financial statements.

15 Payables

Loans and payables are recognised in the statement of financial position at cost.

16 Capital Assets

16.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at

the end of the capital project unless the immovable asset is recorded by another

department in which case the completed project costs are transferred to that

department.

16.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.




288

Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Biological assets are subsequently carried at fair value. [Add this sentence on biological assets if the department has elected to revalue its biological assets at reporting date]


the end of the capital project unless the movable asset is recorded by another

department/entity in which case the completed project costs are transferred to that

department.

16.3 Intangible assets

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.

Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.


Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.


the end of the capital project unless the intangible asset is recorded by another

department/entity in which case the completed project costs are transferred to that

department.

17 Provisions and Contingents

17.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present

legal or constructive obligation to forfeit economic benefits as a result of events in the

past and it is probable that an outflow of resources embodying economic benefits or

service potential will be required to settle the obligation and a reliable estimate of the

obligation can be made. The provision is measured as the best estimate of the funds

required to settle the present obligation at the reporting date.



289

17.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is

a possible obligation that arises from past events, and whose existence will be

confirmed only by the occurrence or non-occurrence of one or more uncertain future

events not within the control of the department or when there is a present obligation

that is not recognised because it is not probable that an outflow of resources will be

required to settle the obligation or the amount of the obligation cannot be measured

reliably

17.3 Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible

asset arises from past events, and whose existence will be confirmed by the

occurrence or non-occurrence of one or more uncertain future events not within the

control of the department

17.4 Commitments

Commitments are recorded at cost in the notes to the financial statements when there

is a contractual arrangement or an approval by management in a manner that raises a

valid expectation that the department will discharge its responsibilities thereby incurring

future expenditure that will result in the outflow of cash

18 Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

approved by Parliament with funding and the related funds are received; or

approved by Parliament without funding and is written off against the appropriation in the statement of financial performance; or

transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised

expenditure.

19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is

expected to be recoverable and are de-recognised when settled or subsequently

written-off as irrecoverable.



290

20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when

confirmed. The amount recorded is equal to the value of the irregular expenditure

incurred unless it is impracticable to determine, in which case reasons thereof are

provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the

relevant authority, transferred to receivables for recovery or not condoned and is not

recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be

recoverable and are de-recognised when settled or subsequently written-off as

irrecoverable.

21 Changes in accounting policies, accounting estimates and errors

Changes in accounting policies that are effected by management have been applied

retrospectively in accordance with MCS requirements, except to the extent that it is

impracticable to determine the period-specific effects or the cumulative effect of the

change in policy. In such instances the department shall restate the opening balances

of assets, liabilities and net assets for the earliest period for which retrospective

restatement is practicable.

Changes in accounting estimates are applied prospectively in accordance with MCS

requirements.

Correction of errors is applied retrospectively in the period in which the error has

occurred in accordance with MCS requirements, except to the extent that it is

impracticable to determine the period-specific effects or the cumulative effect of the

error. In such cases the department shall restate the opening balances of assets,

liabilities and net assets for the earliest period for which retrospective restatement is

practicable.

22 Events after the reporting date

Events after the reporting date that are classified as adjusting events have been

accounted for in the financial statements. The events after the reporting date that are

classified as non-adjusting events after the reporting date have been disclosed in the

notes to the financial statements.



291

23 Capitalisation reserve

The capitalisation reserve comprises of financial assets originating in a prior reporting

period but which are recognised in the statement of financial position. Amounts are

recognised in the capitalisation reserves when identified in the current period and are

transferred to the National Revenue Fund when the underlying asset is disposed and

the related funds are received.

26 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous

financial year becomes recoverable from a debtor in the current financial year.

Amounts are either transferred to the National Revenue Fund when recovered or are

transferred to the statement of financial performance when written-off.

27 Related party transactions

A related party transaction is a transfer of resources, services or obligations between

the reporting entity and a related party. Related party transactions are recorded in the

notes to the financial statements when the transaction is not at arm’s length.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015

292

1 1.1 Annual Appropriation

2014/15

Funds not

Appropriation

Final Actual Funds requested/

Received

Appropriation Received

not received

2013/14

Programmes

R'000 R'000 R'000

R'000

Administration 390,889 390,889 -

333,440

Integrated Transport Planning 74,974 74,974 -

74,913

Rail Transport 15,035,507 15,035,507 -

11,232,843

Road Transport 21,810,020 21,810,020 -

19,900,278

Civil Aviation 160,966 160,966 -

245,515

Maritime Transport 101,742 101,742 -

103,557

Public Transport 11,196,571 11,196,571 -

10,511,121

Total

48,770,669 48,770,669 -

42,401,667

2014/15

2013/14

Note R'000

R'000

2 Departmental Revenue

Sales of goods and services other than capital assets 2.1 611

449

Interest, dividends and rent on land

2.2 230,734

74,007

Transactions in financial assets and liabilities

2.3 90,762

672,511

Departmental revenue collected

322,107

746,967

2.1

Sales of goods and services other than capital assets 2

Sales of goods and services produced by the department

609

446

Sales by market establishment

93

74

Administrative fees

320

270

Other sales

196

102

Sales of scrap, waste and other used current goods

2

3

Total

611

449

2.2 Interest, dividends and rent on land

2

Interest

6,937

74

Dividends

223,797

73,933

Total

230,734

74,007



293

2014/15

2013/14

Note R'000

R'000

2.3 Transactions in financial assets and liabilities 2

Other Receipts including Recoverable Revenue

90,762

672,511

Total

90,762

672,511

3 Compensation of Employees

3.1 Salaries and wages

Basic salary

220,226

193,052

Performance award

14,156

7,608

Service Based

802

645

Compensative/circumstantial

5,658

5,306

Periodic payments

6,624

8,481

Other non-pensionable allowances

62,899

57,402

Total

310,365

272,494

3.2 Social Contributions

3

Employer contributions

Pension

27,777

24,285

Medical

7,716

7,545

Bargaining council

42

35

Total

35,535

31,865

Total compensation of employees

345,900

304,359

Average number of employees

636

584



294

2014/15

2013/14

Note R'000

R'000

4 Goods and services

Administrative fees

1,281

1,455

Advertising

34,418

27,881

Minor assets

4.1 1,820

1,757

Bursaries (employees)

1,226

1,768

Catering

1,744

1,295

Communication

60,471

60,803

Computer services

4.2 7,937

12,933


743,473

1,431,545

Legal services

8,983

4,170

Contractors

2,553

2,519

Agency and support / outsourced services

1,372

744

Entertainment

429

216

Audit cost – external

4.3 5,429

7,208

Inventory

4.4 36

-

Consumables

4.5 5,922

10,976

Operating leases

55,123

38,603

Property payments

4.6 4,787

4,861

Transport provided as part of the departmental activities 630

-

Travel and subsistence

4.7 111,757

57,875

Venues and facilities

8,774

20,578

Training and development

4,004

2,760

Other operating expenditure

4.8 21,973

2,220

Total

1,084,142

1,692,167

4.1 Minor assets

4

Tangible assets

1,820

1,757

Heritage assets

26

56

Machinery and equipment

1,794

1,701

Total

1,820

1,757

4.2 Computer services

4

SITA computer services

1,897

2,023

External computer service providers

6,040

10,910

Total

7,937

12,933



295

2014/15

2013/14

Note R'000

R'000

4.3 Audit cost – external

4

Regularity audits

5,429

7,208

Total

5,429

7,208

4.4 Inventory

4

Clothing material and accessories

36

-

Total

36

-

4.5 Consumables

4

Consumable supplies

964

2,589

Uniform and clothing

201

42

Household supplies

21

57

Building material and supplies

11

11

Communication accessories

2

2

IT consumables

568

1,743

Other consumables

161

734

Stationery, printing and office supplies

4,958

8,387

Total

5,922

10,976

4.6 Property payments

4

Other

4,787

4,861

Total

4,787

4,861

4.7 Travel and subsistence

4

Local

94,459

45,006

Foreign

17,298

12,869

Total

111,757

57,875

4.8 Other operating expenditure

4

Professional bodies, membership and subscription fees

918

475

Resettlement costs

822

209

Other

20,233

1,536

Total

21,973

2,220



296

2014/15

2013/14

Note R'000

R'000

5 Payments for financial assets

Material losses through criminal conduct

178

43

Theft

5.3 178

43

Other material losses

-

-

Other material losses written off

5.1 63

7

Debts written off

5.2 19

30

Total

260

80

5.1 Other material losses written off

5

Nature of losses

Legal settlement

50

-

Missing equipment

13

-

Refund of insurance excesses

2

Vehicle hire and accommodation - no show

5

Total

63

7

5.2 Debts written off

5

Nature of debts written off


11

25

Overpayments and State guarantees

8

5

Total

19

30

Total debt written off

19

30

5.3 Details of theft

5

Nature of theft

Stolen stationery

43

Stolen laptops, cellular telephones and 3G devices

178

-

Total

178

43



297

2014/15

2013/14

Note R'000

R'000

6 Transfers and Subsidies

Provinces and municipalities

38,39, ANNEXURE 1A 20,140,276

18,892,482

Departmental agencies and accounts ANNEXURE 1B 12,283,363 10,700,044

Higher education institutions

ANNEXURE 1C 7,509 10,179

Foreign governments and international organisations ANNEXURE 1E 8,783 7,900

Public corporations and private enterprises ANNEXURE 1D 14,946,301 11,159,113

Non-profit institutions

ANNEXURE 1F 19,808 18,880

Households

ANNEXURE 1G 300,759 231,781

Total

47,706,799 41,020,379

7 Expenditure for capital assets

Tangible assets

9,997

19,859

Buildings and other fixed structures 35 -

8,197


33 9,997

11,662

Total

9,997

19,859

7.1 Analysis of funds utilised to acquire capital assets - 2014/15

Voted Funds

Aid assistance

TOTAL

R'000 R'000

R'000

Tangible assets

9,997 -

9,997


9,997

9,997

Total

9,997 -

9,997

7.2 Analysis of funds utilised to acquire capital assets - 2013/14

Voted Funds

Aid assistance

TOTAL

R'000 R'000

R'000

Tangible assets 19,859 -

19,859

Buildings and other fixed structures 8,197 -

8,197


11,662 -

11,662

Total

19,859 -

19,859



298

2014/15

2013/14

Note R'000

R'000

7.3 Finance lease expenditure included in Expenditure for capital assets

Tangible assets


3,730

3,312

Total

3,730

3,312

8 Unauthorised Expenditure

8.1 Reconciliation of unauthorised expenditure

Opening balance

1,975,729

1,207,374

Unauthorised expenditure - discovered in the current year 392,842

768,355

Unauthorised expenditure awaiting authorisation / written off 2,368,571

1,975,729

8.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

Current

2,368,571

1,975,729

Total

2,368,571

1,975,729

2014/15

2013/14

8.3

Analysis of unauthorised expenditure awaiting authorisation per type R'000

R'000

Unauthorised expenditure relating to overspending of the vote or a main division within the vote 2,368,571

1,975,729

Total

2,368,571

1,975,729

8.4 Details of unauthorised expenditure - current year 2014/15

Incident

Disciplinary steps taken/criminal proceedings R’000

Over expenditure of the Programme: Road Transport because the Electronic National Traffic Information System (eNaTIS) is unfunded

None yet. The matter is being investigated by the Special Investigating Unit

392,842

Total

392,842



299

2014/15

2013/14

Note R'000

R'000

9 Cash and Cash Equivalents

Disbursements

12

-

Cash on hand

28

28

Cash receipts

2,793

29

Total

2,833

57

10 Prepayments and Advances


32

55

Prepayments

36,731

36,793

Advances paid

10.1 5,596

4,491

Total

42,359

41,339

10.1 Advances paid

National departments

Annex 7A 3,715

2,731

Provincial departments

Annex 7A 631

-

Other institutions

Annex 7A 1,250

1,760

Total

5,596

4,491

2014/15

2013/14

Less than one year

One to three years

Older than three years

Total

Note R’000 R’000 R’000 R’000

R’000

11 Receivables

Claims recoverable 11.1

1,865 22,304 6,793 30,962 34,006

Annex 4

Recoverable expenditure 11.2 220 86

306

91

Staff debt 11.3 151 120 260 531

259

Fruitless and wasteful expenditure

11.5

470

470

470

Other debtors

11.4 356 34 245 635

399

Total

2,592 23,014 7,298 32,904

35,225



300

2014/15

2013/14

Note R'000

R'000

11.1 Claims recoverable

11

National departments

1,972

443

Provincial departments

31

156

Public entities

28,959

33,407

Total

30,962

34,006

2014/15

2013/14

Note R'000

R'000

11.2

Recoverable expenditure (disallowance accounts) 11

Salary overpayments

306

91

Total

306

91

11.3 Staff debt

11

Overpayments and State guarantees

246

53

Subsistence and travel

63

31

Other

222

175

Total

531

259

11.4 Other debtors

11

Ex personnel - overpayments and State guarantees

263

123

Subsistence and travel

2

2

Other

370

274

Total

635

399

11.5 Fruitless and wasteful expenditure 11

Opening balance

470

470

Less amounts recovered

18

43

Less amounts written off

7

3

Transfers from note 27 Fruitless and Wasteful expenditure

(25)

(46)

Total

470

470

11.6 Impairment of receivables

Estimate of impairment of receivables

267

221

Total

267

221



301

2014/15

2013/14

Note R'000

R'000

12 Investments

Non-Current

Shares and other equity

Passenger Rail Agency of South Africa Ltd.

4,248,259

4,248,259

Airports Company Ltd.

559,492

559,492

Air Traffic and Navigational Services Company Ltd.

190,646

190,646

S.A. National Roads Agency Ltd.

1,091,044

1,091,044

Total

6,089,441

6,089,441

Total non-current

6,089,441

6,089,441

Opening balance

6,089,441

6,089,441

Closing balance

6,089,441

6,089,441

12.1 Impairment of investments

Estimate of impairment of investments 31 3,698,196

2,517,467

Total

3,698,196

2,517,467

13 Voted Funds to be Surrendered to the Revenue Fund

Opening balance

127,575

313,410

Transfer from statement of financial performance (as restated)

(376,429)

(635,177)

Add: Unauthorised expenditure for current year 8 392,842

768,355

Paid during the year

(127,575)

(319,013)

Closing balance

16,413

127,575

14

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

Opening balance

272,336

73

Transfer from Statement of Financial Performance (as restated)

322,107

746,967

Paid during the year

(594,315)

(474,704)

Closing balance

128

272,336

15 Bank Overdraft

Consolidated Paymaster General Account

2,427,064

1,651,499

Total

2,427,064

1,651,499



302

2014/15

2013/14

Note R'000

R'000

16 Payables - current

Amounts owing to other entities

-

26

Clearing accounts

16.1 2,483

146

Other payables

16.2 117

40

Total

2,600

212

16.1 Clearing accounts

16

(Identify major categories, but list material amounts)

Income tax

2,460

141

Pension fund

22

5

Bargaining Councils

1

-

Total

2,483

146

16.2 Other payables

16

Salary claims over paid

73

-

Receipts and salary deductions to allocate to debt

39

-

Other

5

40

Total

117

40

2014/15

2013/14

One to two

years

Two to three years

More than three years Total

Note R'000 R'000 R'000 R'000

R'000

17 Payables – non-current

Other payables 17.1 29

29

540

Total

29 - - 29

540



303

2014/15

2013/14

Note R'000

R'000

17.1 Other payables

Appeal deposits 17 29

540

Total

29

540

18 Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial Performance

(54,322)

111,790

Add back non cash/cash movements not deemed operating activities

(932,001)

(172,117)

(Increase)/decrease in receivables – current

2,321

944,353

(Increase)/decrease in prepayments and advances

(1,020)

(19,935)

Increase/(decrease) in payables – current

2,388

(248,744)

Expenditure on capital assets

9,997

19,859

Surrenders to Revenue Fund

(721,890)

(793,717)

Other non-cash items

(223,797)

(73,933)

Net cash flow generated by operating activities

(986,323)

(60,327)

19 Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account

(2,427,064)

(1,651,499)

Disbursements

12

-

Cash on hand

28

28

Cash with commercial banks (Local)

2,793

29

Total

(2,424,231)

(1,651,442)

20 Contingent liabilities and contingent assets

20.1 Contingent liabilities

Liable to

Other guarantees

Annex 3A 32,483,727

23,958,538

Claims against the department

Annex 3B 34,272

117,328

Intergovernmental payables (unconfirmed balances)

Annex 5 -

26

Total

32,517,999

24,075,892

A brief description on the uncertainties relating to the amount or timing of any outflow: Guarantees: The potential financial effect amounts to the amount of guarantees issued of R32,483,727,000. The amount and timing of any outflow is uncertain and will depend on whether the South African National Roads Agency (SOC)Ltd. and the Passenger Rail Agency of South Africa Ltd. honour the obligations that are guaranteed. Claims against the Department represent the amounts of litigation against the Department as detailed in Annexure 3B. The amount and timing of any outflow is uncertain and will depend whether legal action against the Department succeeds.



304

A brief discussion on the possibility of any reimbursement: For guarantees issued, there is no possibility of any reimbursement. For claims against the Department, there is a possibility of the reimbursement of legal costs, depending on a court order.

2014/15

2013/14

Note R'000

R'000

21 Commitments

Current expenditure

Approved and contracted

377,565

506,434

Approved but not yet contracted

-

2,759

377,565

509,193

Capital Expenditure

Approved and contracted

1,209

930

Approved but not yet contracted

-

85

1,209

1,015

Total Commitments

378,774

510,208

Committed for longer than a year: Current expenditure approved and contracted R25,228,954.

22 Accruals and payables not recognised

Listed by economic classification 30 days 30+ days Total

Total

Other 586 53 639 1,417

Goods and services

51,011 51,075 102,086

138,491

Capital assets

7 7

41

Total

51,597 51,135 102,732

139,949

2014/15

2013/14

Listed by programme level

R'000

R'000

Programme 1

4,618

49,515

Programme 2

8,233

3,471

Programme 3

87

29

Programme 4

82,308

81,998

Programme 5

1,059

2,176

Programme 6

794

1,615

Programme 7

5,633

1,145

Total

102,732

139,949

Material accruals include the lease for premises, travel expenditure, claims from other departments, and work done by consultants that was not yet paid for at the end of the period.



305

2014/15

2013/14

Note R'000

R'000

Confirmed balances with departments

Annex 5

81

Total

-

81

23 Employee benefits

Leave entitlement

35,826

36,474

Service bonus (Thirteenth cheque)

8,258

7,292

Capped leave commitments

11,192

11,257

Total

55,276

55,023

24 Lease commitments

24.1 Operating leases expenditure

2014/15

Buildings and other fixed structures

Machinery and

equipment

Total

R'000 R'000

R'000

Not later than 1 year 66,205 28

66,233

Later than 1 year and not later than 5 years 330,012

330,012

Later than five years 49,091

49,091

Total lease commitments 445,308 28

445,336

2013/14


Machinery and

equipment

Total

R'000 R'000

R'000

Not later than 1 year 60,738 105

60,843

Later than 1 year and not later than 5 years 302,763 28

302,791

Later than five years 142,545 -

142,545

Total lease commitments 506,046 133

506,179



306

Operating leases comprise of leases for premises and 3G devices. The lease for premises expires on 30 September 2020 with no option for renewal. The Department does not have an option to cancel the lease before the expiry date. A tenant's installation allowed the Department to upgrade the premises at R450 per square meter, amounting to R15 million. There are no encumbrances on the lease. For 3G devices, a one-month notice must be given to end the lease at the end of the lease period of 24 months, after which the 3G devices become the property of the Department. The Department has an option to continue the lease of 3G devices on a month-to-month basis after expiry of the lease period. An early settlement penalty is levied if a lease for a 3G device is cancelled before expiry of the lease period.

24.2 Finance leases expenditure **

2014/15


Machinery and

equipment

Total

R'000 R'000

R'000

Not later than 1 year

3,073

3,073

Later than 1 year and not later than 5 years

2,859

2,859

Later than five years

-

Total lease commitments - 5,932

5,932

2013/14


Machinery and

equipment

Total

R'000 R'000

R'000

Not later than 1 year - 2,942

2,942

Later than 1 year and not later than 5 years - 1,667

1,667

Later than five years - -

-

Total lease commitments - 4,609

4,609

Material leasing arrangements are leases of photocopy machines and cellular telephones. For photocopy machines, the Department has an option to renew the lease after the initial period of 36 months for another 24 months with a 75% reduction in the original lease price. For cellular telephones, a one-month notice must be given to end the lease at the end of the lease period of 24 months, after which the cellular telephones become the property of the Department.



307

2014/15

2013/14

Note R'000

R'000

25 Accrued departmental revenue


433

188

Total

433

188

25.1 Analysis of accrued departmental revenue

Opening balance

188

209

Less: Amounts received

161

197

Add: Amounts recognised

406

207

Less: Amounts written-off/reversed as irrecoverable -

31

Closing balance

433

188

26 Irregular expenditure

26.1 Reconciliation of irregular expenditure

Opening balance

1,645,486

56,545

Add: Irregular expenditure - relating to prior year 995

475,443

Add: Irregular expenditure - relating to current year 101,344

1,121,695

Less: Prior year amounts condoned

(8,197)

Irregular expenditure awaiting condonation 1,747,825

1,645,486

Analysis of awaiting condonation per age classification

Current year

101,344

1,121,695

Prior years

1,646,481

523,791

Total

1,747,825

1,645,486

2014/15

26.2 Details of irregular expenditure - current year R'000

Incident

Disciplinary steps taken / criminal proceedings

Further expenditure on a contract that was extended without following procedures

None yet. The extension is being investigated by the Special Investigating Unit 98,478

Services procured without obtaining competitive quotations

Verbal warnings 57

No contract for employment extension

None yet 751

Non-compliance with Public Service Regulations

None yet 154

Insufficient evidence that supplier’s database was used

None yet 652

Supplier's database was not used to obtain quotes

None yet 1,252

101,344



308

2014/15

26.3 Details of irregular expenditure under investigation R'000

Incident

Contract extended without following procedures 5,979

Contract extended without following procedures 1,042,991

Services procured without obtaining competitive quotations 57

1,049,027

2014/15

2013/14

Note R'000

R'000

27 Fruitless and wasteful expenditure

27.1

Reconciliation of fruitless and wasteful expenditure

Opening balance

1,294

683

Fruitless and wasteful expenditure – relating to prior year

640

Fruitless and wasteful expenditure – relating to current year

96

20

Less: Amounts resolved

(3)

Less: Amounts transferred to receivables for recovery 12 (25) - (46)

Fruitless and wasteful expenditure awaiting resolution

1,365

1,294

27.2

Analysis of awaiting resolution per economic classification

Current

1,365

1,294

Total

1,365

1,294

27.3

Analysis of Current Year's Fruitless and wasteful expenditure 2014/15

Incident

Disciplinary steps taken/criminal proceedings R’000

Five cases of "no shows" Under investigation 3

Overseas trip cancelled None 7

Booking for a VIP lounge cancelled Under investigation 19

Cancellation of some bookings for a conference Under investigation 67

Total

96



309

2014/15

2013/14

Note R'000

R'000

28 Related party transactions

Revenue received


4,314

48,873

Total

4,314

48,873

Payments made

Goods and services

3,733

38


3,797

7,750

Total

7,530

7,788

Year end balances arising from revenue/payments

Receivables from related parties

29,739

30,495

Total

29,739

30,495

Guarantees issued/received

S.A. National Roads Agency Ltd.

32,435,517

23,866,100


48,210

92,438

Total

32,483,727

23,958,538

2014/15

R'000

In kind goods and services provided/received

The Passenger Rail Agency of South Africa sponsored 30 buses (60-seater) for the Presidential Inauguration

1,984

Total

1,984

Related party relationships:

Name of related party

Relationship Types of transaction Elements of transaction

Air Traffic and Navigation Services Company Ltd.

Public Entity Not applicable Not applicable

South African National Roads Agency Ltd.

Public Entity Transfer payments Transfer payments

Road Traffic Management Corporation

Public Entity Transfer payments and transactions in financial assets and liabilities

Transfer payments and transactions in financial assets and liabilities

South African Civil Aviation Authority

Public Entity Transfer payments, goods and services and transactions in financial assets and liabilities

Transfer payments, Annual Transport Awards prize and transactions in financial assets and liabilities



310

Related party relationships:

Name of related party

Relationship Types of transaction Elements of transaction

South African Maritime Safety Authority


Driving License Card Account

Trading Entity Salary claims and transactions in financial assets and liabilities

Salary claims and transactions in financial assets and liabilities



Railway Safety Regulator Public Entity Transfer payments and goods and services

Transfer payments, asset register, conference fees and training

Ports Regulator Public Entity Transfer payments Transfer payments



Airports Company Ltd. Public Entity Not applicable Not applicable

Cross Border Road Transport Agency

Public Entity Not applicable Not applicable

Road Accident Fund Public Entity Goods and services Annual Transport Awards prize

2014/15

2013/14

No. of R'000

R'000

29 Key management personnel

Individuals

Political office bearers

2 4,067

3,808

Officials:

Level 15 to 16

12 12,584

14,752

Level 14 (incl CFO if at a lower level) 34 35,174

32,100

Family members of key management personnel

-

Total

51,825

50,660



311

2014/15

2013/14

Note R'000

R'000

30 Public Private Partnership

Contract fee paid

54,345

8,393

Indexed component

54,345

8,393

Analysis of indexed component

54,345

8,393

Goods and Services (excluding lease payments)

54,345

8,393

Summary of the significant terms of the agreement, the parties to the agreement, and the date of commencement: A Transport Fleet Services Public Private Partnership was entered into during November 2006 to render vehicle fleet services to seventeen Government departments. Services that are provided for in the contract include long-term vehicle rentals, short-term day-to-day vehicle rentals, short medium term vehicle rentals, a 24-hour Call Centre, chauffeur and point-to-point driven services, an internet based fleet management system with an electronic log book, and a fuel management system.

31 Impairment: other

Investments - refer Annexure 2A: Net Asset Value of PRASA less than investment

3,698,196

2,517,467

Debtors

267

221

Total

3,698,463

2,517,688

32 Provisions

No shows

87

9

Long service awards

210

81

Provision for performance bonus

5,200

4,567

Total

5,497

4,657

32.1 Reconciliation of movement in provisions - 2014/2015

Long service awards No shows

Performance bonuses

Total provisions

R'000 R'000 R'000

R'000

Opening balance

81 9 4,567

4,657

Increase in provision 210 78 5,200

5,488

Settlement of provision (81)

(4,567)

(4,648)

Closing balance

210 87 5,200

5,497



312

Reconciliation of movement in provisions - 2013/2014

Additional leave

Long service awards No shows

Performance bonuses

Total provisions

R'000 R'000 R'000 R'000

R'000

Opening balance

- - 509 4,339

4,848

Increase in provision

81

228

309

Settlement of provision

(30)

(30)

Unused amount reversed

(470)

(470)

Closing balance

- 81 9 4,567

4,657

Nature of each obligation and the expected timing of any resulting outflows of economic benefits or service potential:

Long service award: Provision was made for employees who will receive long service awards in the next financial year. No shows represent fruitless and wasteful expenditure that may not be recoverable but that were not yet written off. It is expected that these amounts will be written off in the next financial year. Performance bonuses: The Provision for performance bonuses was increased for performance bonuses due but not yet paid. It is expected that the performance bonuses will be paid in the next financial year.

33 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Additions Disposals

Closing balance

R'000

R'000 R'000

R'000

MACHINERY AND EQUIPMENT 42,979

6,847 1,400

48,426

Transport assets

3,597

- 735

2,862

Computer equipment

25,320

4,755 411

29,664

Furniture and office equipment 9,573

1,388 24

10,937

Other machinery and equipment 4,489

704 230

4,963

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 42,979

6,847 1,400

48,426



313

Movable Tangible Capital Assets under investigation

Number

Value

Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:

R'000


965

12,709

Reasons why assets are under investigation and actions being taken to resolve matters: During a physical asset count, the assets under investigation could not be directly matched or verified to the asset register. All officials were provided with a list of their assets that are under investigation and were requested to provide reasons why the assets could not be found. The reasons that were provided are being followed up, and attempts continue to find the assets that were not counted during the physical asset count.

Additions

33.1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Cash Non-cash

(Capital work-in-progress current

costs and finance lease

payments)

Received current, not paid

(Paid current year,

received prior year

Total

R'000 R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT 9,997 539 (3,730) 41

6,847

Computer equipment

4,702 12

41

4,755

Furniture and office equipment 4,136 180 (2,928)

1,388

Other machinery and equipment 1,159 347 (802)

704

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 9,997 539 (3,730) 41

6,847

Disposals



314

33.2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Sold for cash

Transfer out or

destroyed or

scrapped Total

disposals

Cash received Actual

R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT - 1,400 1,400

-

Transport assets

735 735

Computer equipment

411 411

Furniture and office equipment 24 24

Other machinery and equipment 230 230

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 1,400 1,400

-

33.3 Movement for 2013/14

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Prior period error Additions Disposals

Closing balance

R'000 R'000 R'000 R'000

R'000

MACHINERY AND EQUIPMENT 34,704 (37) 8,374 62

42,979

Transport assets

3,597 - -

3,597

Computer equipment

20,115

5,218 13

25,320

Furniture and office equipment 7,837

1,757 21

9,573

Other machinery and equipment 3,155 (37) 1,399 28

4,489

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 34,704 (37) 8,374 62

42,979



315

33.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Intan-gible

assets

Machinery and

equipment

Total

R'000 R'000

R'000

Opening balance

6 17,441

17,447

Additions

1,894

1,894

Disposals

117

117

TOTAL MINOR ASSETS

6 19,218

19,224

Intan-gible

assets

Machinery and

equipment

Total

Number of R1 minor assets

41

41

Number of minor assets at cost

21 13,328

13,349

TOTAL NUMBER OF MINOR ASSETS

21 13,369

13,390

Minor Capital Assets under investigation

Number

Value

Included in the above total of the minor capital assets per the asset register are assets that are under investigation:

R'000


4,939

5,379

Reasons why assets are under investigation and actions being taken to resolve matters: During a physical asset count, the assets under investigation could not be directly matched or verified to the asset register. All officials were provided with a list of their assets that are under investigation and were requested to provide reasons why the assets could not be found. The reasons that were provided are being followed up, and attempts continue to find the assets that were not counted during the physical asset count.



316

Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Intan-gible

assets

Machinery and

equipment

Total

R'000 R'000

R'000

Opening balance

6 15,820

15,826

Additions

- 1,733

1,733

Disposals

- 112

112

TOTAL MINOR ASSETS 6 17,441

17,447

Intan-gible

assets

Machinery and

equipment

Total

Number of R1 minor assets

- 41

41

Number of minor assets at cost

21 12,459

12,480

TOTAL NUMBER OF MINOR ASSETS

21 12,500

12,521

34 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Additions Disposals

Closing balance

R'000 R'000 R'000

R'000

SOFTWARE

305 - -

305

TOTAL INTANGIBLE CAPITAL ASSETS 305 - -

305

Movement for 2013/14

34.1 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Prior period error

Additions Disposals

Closing balance

R'000 R'000 R'000 R'000

R'000

SOFTWARE

305 - - -

305

TOTAL INTANGIBLE CAPITAL ASSETS 305 - - -

305



317

35 Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Additions Disposals

Closing balance

R'000 R'000 R'000

R'000

BUILDINGS AND OTHER FIXED STRUCTURES

353,434 - -

353,434

Other fixed structures

353,434 - -

353,434

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

353,434 - -

353,434

Movement for 2013/14

35.1 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening balance

Prior period error

Additions Disposals

Closing balance

R'000 R'000 R'000 R'000

R'000

BUILDINGS AND OTHER FIXED STRUCTURES 345,237 - 8,197 -

353,434


345,237 - 8,197 -

353,434

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 345,237 - 8,197 -

353,434

S42 Immovable assets

35.2 Assets subjected to transfer in terms of S42 of the PFMA - 2014/15

No of Assets

Value of Assets

R'000


1

353,434


1

353,434

TOTAL

1

353,434



318

Assets subjected to transfer in terms of S42 of the PFMA - 2013/14

No of Assets

Value of Assets

R'000


1

353,434


1

353,434

TOTAL

1

353,434

36 Mthatha Airport Runway

The department acted as an agent on behalf of the Eastern Cape Department of Transport for the upgrade and refurbishment of the Mthatha Airport runway. The improvements to the asset are subject to transfer in terms of section 42 of the Public Finance Management Act. The department did not receive any revenue for acting as an agent in this regard.

37 Prior period errors

37.1 Correction of prior period errors

2013/14

Note

R'000

Assets: (e.g. Receivables, Investments, Accrued departmental revenue, Movable tangible capital assets, etc.)

The comparative amounts in Note 12.1 and Note 31 (Impairment of investments) were restated as follows:

The amount of impairment of investments was increased after the audited financial statements of the Passenger Rail Agency of South Africa Ltd. was received. 12.1; 31 212,692

Net effect 212,692

Liabilities: (e.g. Payables current, Voted funds to be surrendered, Commitments, Provisions, etc.)

The comparative amount in Note 32 (Provisions) was restated as follows:

The provision for leave after 10 years was removed because the amount is already reflected under employee benefits in Note 25. 32

376

Net effect

376



319

38 STATEMENT OF CONDITIONAL GRANTS PAID TO THE PROVINCES

GRANT ALLOCATION TRANSFER SPENT 2013/14

NAME OF PROVINCE/GRANT

Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withhel

d

Re-allocations by National Treasury or

National Department

Amount received by department

Amount spent by

department

% of available

funds spent by dept

Division of Revenue Act

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % R'000

Summary by province Eastern Cape 1,489,561 - - 1,489,561 1,489,561 - - 1,489,561 1,370,568 92% 1,476,350

Free State 1,241,582 - - 1,241,582 1,241,582 - - 1,241,582 1,468,003 118% 1,528,705

Gauteng 2,334,757 - - 2,334,757 2,334,757 - - 2,334,757 2,301,538 99% 2,369,592

KwaZulu-Natal 2,692,941 - - 2,692,941 2,692,941 - - 2,692,941 2,773,110 103% 2,375,853

Limpopo 1,419,162 - - 1,419,162 1,419,162 - - 1,419,162 1,463,504 103% 847,276

Mpumalanga 2,086,258 - - 2,086,258 2,086,258 - - 2,086,258 2,084,900 100% 1,952,319

Northern Cape 684,409 - - 684,409 684,409 - - 684,409 680,745 99% 740,874

North West 780,323 - - 780,323 780,323 - - 780,323 786,325 101% 746,987

Western Cape 1,465,214 - - 1,465,214 1,465,214 - - 1,465,214 1,465,214 100% 1,252,340

14,194,207 - - 14,194,207 14,194,207 - - 14,194,207 14,393,907 13,290,296

Summary by grant Provincial Road

Maintenance - Coal Haulage Grant 803,002 - - 803,002 803,002 - - 803,002 803,002 100% 808,900 Provincial Road Maintenance - Disaster Management Grant 602,251 - - 602,251 602,251 - - 602,251 597,233 99% 409,387 Provincial Road Maintenance Grant 7,956,245 - - 7,956,245 7,956,245 - - 7,956,245 8,122,364 102% 7,519,488



320




Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withhel

d


National Department


Amount spent by

department

% of available

funds spent by dept


R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % R'000

Public Transport Operations Grant 4,832,709 - - 4,832,709 4,832,709 - - 4,832,709 4,871,308 101% 4,552,521

14,194,207 - - 14,194,207 14,194,207 - - 14,194,207 14,393,907 13,290,296

Provincial Road Maintenance - Coal Haulage Grant

Gauteng

-

900

KwaZulu-Natal 63,000

63,000 63,000

63,000 63,000 100% Mpumalanga 740,002

740,002 740,002

740,002 740,002 100% 808,000

803,002 - - 803,002 803,002 - - 803,002 803,002 808,900

Provincial Road Maintenance - Disaster Management Grant

Eastern Cape 171,196

171,196 171,196

171,196 155,457 91% 124,765

Free State 33,282

33,282 33,282

33,282 40,633 122% 33,361

Gauteng 1,431

1,431 1,431

1,431 1,431 100% 1,435


52,194 52,194

52,194 52,194 100% 47,190

Limpopo 79,613

79,613 79,613

79,613 82,901 104% 65,629

Mpumalanga 76,310

76,310 76,310

76,310 76,310 100% 18,313

Northern Cape 93,204

93,204 93,204

93,204 93,204 100% 93,427

North West 8,073

8,073 8,073

8,073 8,155 101% 8,092



321




Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withhel

d


National Department


Amount spent by

department

% of available

funds spent by dept


R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % R'000

Western Cape 86,948

86,948 86,948

86,948 86,948 100% 17,175

602,251 - - 602,251 602,251 - - 602,251 597,233 409,387

Provincial Road Maintenance Grant

Eastern Cape 1,123,083

1,123,083 1,123,083

1,123,083 1,019,834 91% 1,167,625

Free State 992,400

992,400 992,400

992,400 1,211,596 122% 1,291,962

Gauteng 513,472

513,472 513,472

513,472 513,459 100% 652,913

KwaZulu-Natal 1,672,964

1,672,964 1,672,964

1,672,964 1,672,964 100% 1,476,338

Limpopo 1,047,697

1,047,697 1,047,697

1,047,697 1,090,960 104% 506,715

Mpumalanga 778,528

778,528 778,528

778,528 778,527 100% 663,080


547,268 547,268

547,268 547,268 100% 606,057

North West 681,932

681,932 681,932

681,932 688,855 101% 653,813

Western Cape 598,901

598,901 598,901

598,901 598,901 100% 500,985

7,956,245 - - 7,956,245 7,956,245 - - 7,956,245 8,122,364 7,519,488

Public Transport Operations Grant

Eastern Cape 195,282

195,282 195,282

195,282 195,277 100% 183,960

Free State 215,900

215,900 215,900

215,900 215,774 100% 203,382

Gauteng 1,819,854

1,819,854 1,819,854

1,819,854 1,786,648 98% 1,714,344


904,783 904,783

904,783 984,952 109% 852,325



322




Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withhel

d


National Department


Amount spent by

department

% of available

funds spent by dept


R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % R'000

Limpopo 291,852

291,852 291,852

291,852 289,643 99% 274,932

Mpumalanga 491,418

491,418 491,418

491,418 490,061 100% 462,926


43,937 43,937

43,937 40,273 92% 41,390

North West 90,318

90,318 90,318

90,318 89,315 99% 85,082

Western Cape 779,365

779,365 779,365

779,365 779,365 100% 734,180

4,832,709 - - 4,832,709 4,832,709 - - 4,832,709 4,871,308 4,552,521

It is certified that all transfers were deposited into the primary bank account of a province or, where appropriate, into the CPD account of a province.



323

39 STATEMENT OF CONDITIONAL/UNCONDITIONAL GRANTS PAID TO MUNICIPALITIES

GRANT ALLOCATION TRANSFER

NAME OF MUNICIPALITY


Roll Overs Adjustments Total Available Actual Transfer Funds Withheld


National Department

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Cape Town 1,376,688 - - 1,376,688 1,376,688 Ekurhuleni 250,000 - - 250,000 250,000 Ethekwini 775,571 - - 775,571 775,571 George 122,254 - - 122,254 122,254 Johannesburg 1,065,571 - - 1,065,571 1,065,571 Mangaung 30,000 - - 30,000 30,000 Mbombela 195,191 - - 195,191 195,191 Msunduzi 100,000 - - 100,000 100,000 Nelson Mandela 230,000 - - 230,000 230,000 Polokwane 200,000 - - 200,000 200,000 Rustenburg 520,000 - - 520,000 520,000 Tshwane 1,005,571 - - 1,005,571 1,005,571 Alfred Nzo 2,104 - - 2,104 2,104 Amajuba 2,020 - - 2,020 2,020 Amatole 2,708 - - 2,708 2,708 Bojanala Platinum 1,767 - 1,497 3,264 3,264 Cacadu 2,110 - - 2,110 2,110 Capricorn 2,184 - - 2,184 2,184 Central Karoo 1,497 - - 1,497 1,497



324







National Department

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Chris Hani 2,979 - - 2,979 2,979 Dr Kenneth Kaunda 1,801 - - 1,801 1,801 Dr Ruth Segomotsi Mompati 2,225 - 1,947 4,172 4,172 Eden 1,947 - (1,947) - - Ehlanzeni 1,843 - - 1,843 1,843 Fezile Dabi 1,709 - - 1,709 1,709 Gert Sibande 2,063 - - 2,063 2,063 iLembe 2,120 - - 2,120 2,120 John Taolo Gaetwewe 1,725 - - 1,725 1,725 Lejweleputswa 1,775 - - 1,775 1,775 Mopani 1,995 - - 1,995 1,995 Ngaka Modiri Molema 2,312 - 463 2,775 2,775 Nkangala 1,950 - - 1,950 1,950 OR Tambo 2,686 - - 2,686 2,686 Sekhukhune 2,063 - - 2,063 2,063 Sisonke/Harry Gwala 2,044 - - 2,044 2,044 Thabo Mofutsanyana 1,885 - - 1,885 1,885 Ugu 2,430 - - 2,430 2,430 Ukhahlamba / Joe Gqabi 2,084 - - 2,084 2,084 uMgungundlovu 2,303 - - 2,303 2,303



325







National Department

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Umkhanyakude 2,440 - - 2,440 2,440 Umzinyathi 2,128 - - 2,128 2,128 Uthukela 2,315 - - 2,315 2,315 uThungulu 2,305 - - 2,305 2,305 Vhembe 1,948 - - 1,948 1,948 Waterberg 1,779 - - 1,779 1,779 West Coast 1,960 - (1,960) - - Xhariep 1,852 - - 1,852 1,852 Zululand 2,167 - - 2,167 2,167

5,946,069 - - 5,946,069 5,946,069 - -

It is certified that all transfers in terms of the Division of Revenue Act were deposited into a primary bank account of the municipalities


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2015

326

Annexure 1A STATEMENT OF CONDITIONAL GRANTS PAID TO

MUNICIPALITIES



Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withheld


National Department

Amount received by Municipality

Amount spent by

municipality

% of available

funds spent by

municipality


R'000 R'000 R'000 R’000 R'000 R'000 R'000 R'000 R'000 % R'000

Buffalo City - - - - -

- -

20,000

Cape Town 1,376,688 - - 1,376,688 1,376,688

1,376,688 499,382 36% 1,298,762

Ekurhuleni 250,000 - - 250,000 250,000

250,000 109,682 44% 243,543

Ethekwini 775,571 - - 775,571 775,571

775,571 144,830 19% 578,761

George 122,254 - - 122,254 122,254

122,254 26,879 22% 265,019

Johannesburg 1,065,571 - - 1,065,571 1,065,571

1,065,571 450,267 42% 1,111,766

Mangaung 30,000 - - 30,000 30,000

30,000 - 0% 20,000

Mbombela 195,191 - - 195,191 195,191

195,191 82,474 42% 123,762

Msunduzi 100,000 - - 100,000 100,000

100,000 46,122 46% 100,846

Nelson Mandela 230,000 - - 230,000 230,000

230,000 184,719 80% 185,000

Polokwane 200,000 - - 200,000 200,000

200,000 66,036 33% 198,761

Rustenburg 520,000 - - 520,000 520,000

520,000 158,544 30% 630,000

Tshwane 1,005,571 - - 1,005,571 1,005,571

1,005,571 803,571 80% 773,761

Alfred Nzo 2,104 - - 2,104 2,104

2,104 969 46% 1,795

Amajuba 2,020 - - 2,020 2,020

2,020 1,572 78% 1,706

Amatole 2,708 - - 2,708 2,708

2,708 1,905 70% 2,347

Bojanala Platinum 1,767 - 1,497 3,264 3,264

3,264 1,067 33% -

Cacadu 2,110 - - 2,110 2,110

2,110 1,265 60% 1,902

Capricorn 2,184 - - 2,184 2,184

2,184 1,042 48% 1,880



327


MUNICIPALITIES



Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withheld


National Department


Amount spent by

municipality

% of available

funds spent by

municipality


R'000 R'000 R'000 R’000 R'000 R'000 R'000 R'000 R'000 % R'000

Central Karoo 1,497 - - 1,497 1,497

1,497 - 0% -

Chris Hani 2,979 - - 2,979 2,979

2,979 1,525 51% 2,589

Dr Kenneth Kaunda 1,801 - - 1,801 1,801

1,801 300 17% -

Dr Ruth Segomotsi Mompati 2,225 - 1,947 4,172 4,172

4,172 1,062 25% 1,914

Eden 1,947 - (1,947) - -

- - N/a -

Ehlanzeni 1,843 - - 1,843 1,843

1,843 1,127 61% 1,710

Fezile Dabi 1,709 - - 1,709 1,709

1,709 164 10% -

Gert Sibande 2,063 - - 2,063 2,063

2,063 887 43% 1,822

iLembe 2,120 - - 2,120 2,120

2,120 784 37% 1,807

John Taolo Gaetwewe 1,725 - - 1,725 1,725

1,725 1,093 63% 1,465

Lejweleputswa 1,775 - - 1,775 1,775

1,775 1,281 72% -

Mopani 1,995 - - 1,995 1,995

1,995 1,075 54% 1,726

Ngaka Modiri Molema 2,312 - 463 2,775 2,775

2,775 743 27% 1,985

Nkangala 1,950 - - 1,950 1,950

1,950 922 47% 1,602

OR Tambo 2,686 - - 2,686 2,686

2,686 454 17% 2,290

Sekhukhune 2,063 - - 2,063 2,063

2,063 - 0% 1,781

Sisonke/Harry Gwala 2,044 - - 2,044 2,044

2,044 1,111 54% 1,814

Thabo Mofutsanyana 1,885 - - 1,885 1,885

1,885 780 41% -

Ugu 2,430 - - 2,430 2,430

2,430 1,653 68% 2,089



328


MUNICIPALITIES



Division of Revenue

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

Funds Withheld


National Department


Amount spent by

municipality

% of available

funds spent by

municipality


R'000 R'000 R'000 R’000 R'000 R'000 R'000 R'000 R'000 % R'000

Ukhahlamba / Joe Gqabi 2,084 - - 2,084 2,084

2,084 924 44% 1,778

uMgungundlovu 2,303 - - 2,303 2,303

2,303 799 35% 2,018

Umkhanyakude 2,440 - - 2,440 2,440

2,440 205 8% 2,101

Umzinyathi 2,128 - - 2,128 2,128

2,128 1,435 67% 1,966

Uthukela 2,315 - - 2,315 2,315

2,315 1,325 57% 1,999

uThungulu 2,305 - - 2,305 2,305

2,305 1,048 45% 1,746

Vhembe 1,948 - - 1,948 1,948

1,948 1,214 62% 1,667

Waterberg 1,779 - - 1,779 1,779

1,779 1,353 76% 1,571

West Coast 1,960 - (1,960) - -

- - N/a -

Xhariep 1,852 - - 1,852 1,852

1,852 1,339 72% 1,269

Zululand 2,167 - - 2,167 2,167

2,167 858 40% 1,866

5,946,069 - - 5,946,069 5,946,069 - - 5,946,069 2,605,787

5,602,186

It is certified that all transfers in terms of the Division of Revenue Act were deposited into a primary bank account of the municipalities



329

ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

TRANSFER ALLOCATION TRANSFER 2013/14

DEPARTMENT/AGENCY/ACCOUNT

Adjusted appropriation

Roll Overs Adjustments Total Available

Actual Transfer % of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000

South African National Roads Agency Ltd. 11,916,947

11,916,947 11,916,947 100% 10,497,184

Railway Safety Regulator 51,504

51,504 51,504 100% 46,513

South African Civil Aviation Authority 19,239

19,239 19,239 100% 18,155

South African Maritime Safety Authority 6,887

6,887 6,887 100% 12,901

Transport Education and Training Authority 978

978 978 100% 919

Road Traffic Management Corporation 176,008

176,008 259,481 147% 166,946

Ports Regulator 16,852

16,852 16,852 100% 15,900

Road Traffic Infringements Agency 15,300

15,300 11,475 75% 25,000

Public Sector Education and Training Authority 173

173 - 0%

-

12,203,888 - - 12,203,888 12,283,363

10,783,518



330

ANNEXURE 1C STATEMENT OF TRANSFERS TO HIGHER EDUCATION

INSTITUTIONS

TRANSFER ALLOCATION TRANSFER 2013/14

INSTITUTION NAME



Actual Transfer

Amount not transferred

% of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 R'000 % R'000

University of Stellenbosch 3,597

3,597 3,597 - 100% 4,203

University of Kwa-Zulu Natal 3,281

3,281 - 3,281 0% 2,445

North West University 1,496

1,496 1,496 - 100% 1,517

Tshwane University of Technology 486

486 486 - 100% 521

University of Johannesburg 1,210

1,210 1,210 - 100% 856

University of South Africa 720

720 720 - 100% 637

10,790 - - 10,790 7,509 3,281

10,179



331

ANNEXURE 1D STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

TRANSFER ALLOCATION EXPENDITURE 2013/14

NAME OF PUBLIC CORPORATION/PRIVATE ENTERPRISE


Act


Actual Transfer

% of Available

funds transferred

Capital Current Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000

Public corporations Transfers Passenger Rail Agency of South

Africa Ltd. 14,946,301

14,946,301 14,946,301 100.0% 12,019,040 8,637,435 11,159,113

TOTAL 14,946,301 - - 14,946,301 14,946,301 100.0% 12,019,040 8,637,435 11,159,113



332

ANNEXURE 1E STATEMENT OF TRANSFERS TO FOREIGN GOVERNMENT AND INTERNATIONAL ORGANISATIONS


FOREIGN GOVERNMENT / INTERNATIONAL ORGANISATION


Act

Roll Overs

Adjustments Total Available

Actual Transfer

% of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers COSPAS / SARSAT 438 438 404 92% 413

International Civil Aviation Organisation 3,721 3,721 3,690 99% 3,510

Indian Ocean Memorandum of Understanding 292 292 278 95% 276

International Maritime Organisation 1,324 1,324 496 37% 1,249

African Civil Aviation Commission 4,307 4,307 3,915 91% 4,077

Total 10,082 - - 10,082 8,783

9,525



333

ANNEXURE 1F STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS


NON-PROFIT INSTITUTIONS


Act

Roll Overs Adjustments Total Available Actual Transfer % of Available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers National Sea Rescue Institute 2,000 2,000 2,000 100% 1,223

SANTACO 18,407 18,407 17,500 95% 17,365

Off Road Rescue Unit 77 77 77 100% 73

The Mountain Club of South Africa 77 77 77 100% 73

National Emergency Communications Division of the South African Radio League

77 77 77 100% 73

K9 Search and Rescue Association 77 77 77 100% 73

Total 20,715 - - 20,715 19,808

18,880



334

ANNEXURE 1G STATEMENT OF TRANSFERS TO HOUSEHOLDS


HOUSEHOLDS


Act

Roll Overs Adjustments Total Available Actual Transfer % of Available funds

transferred

Appro-priation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers Taxi recapitalisation 423,604

(123,541) 300,063 300,063 100% 230,898

Leave gratuity 161

446 607 591 97% 886

Gifts and donations -

105 105 105 100% -

Total 423,765 - (122,990) 300,775 300,759

231,784



335

ANNEXURE 1H STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

2014/15 2013/14

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R'000 R'000

Received in cash Transport Education and Training Authority Sponsored 45 interns for workplace experience 729

Subtotal

729 -

Received in kind

South African Maritime Safety Authority Sponsored studies at World Maritime University for an official 256

DataDot Technology SA Sponsored four officials to visit their facility 27

Global Environment Facility through the UNDP Stipend payments to Young Professionals in District Municipalities 4,746

Global Environment Facility through the UNDP Training and mentoring of Young Professionals in District Municipalities 1,342

Global Environment Facility through the UNDP Development of Sustainable Transport Information Portal 3,247

Global Environment Facility through the UNDP Evaluation Report for a High Occupance Vehicle Lane 391

Global Environment Facility through the UNDP Preparation of an Integrated Urban Realm and Movement Plan 3,679

Global Environment Facility through the UNDP Evaluation of assisted Integrated Public Transport System 447

Global Environment Facility through the UNDP Non-Motorised Transport Evaluation Studies Activities 852

BMW South Africa Vehicles utilized during the funeral of the late President Mandela 6,900

MTN Foundation Sponsored squeeze bottle gifts for motorists and passengers for Rest Stops Activations

90

Think Pedestrian - Eqstra Fleet Mgmt Hosted World Remembrance Day for victims of road accidents and provided promotional material

440

Pick n Pay Provided mineral water bottles to hand to drivers at Rest Stops 15

MTN Foundation Cold drinks for public transport driver safety campaigns 100



336


2014/15 2013/14


Imperial Holdings Funded the Torch of Peach event and provided scholar safety material for a school

100

German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

Funded research on climate friendly transport technologies and measures 200

Government of Singapore Sponsored a Search and Rescue Administration course 48

U.S. Trade and Development Agency Five-day training program including a three-day course at Embry-Riddle Aeronautical University and additional programs at Orlando International, the Orlando International FAA air traffic control tower and Orlando Sanford International Airport. Included meals and accommodation for two employees

88

African Union Commission Sponsored an employee's air ticket, accommodation and allowance for a Meeting of Experts to Review the Regulatory Framework for the Implementation of the Yamoussoukro Decision in Addis Ababa, Ethiopia.

27

Ford South Africa Inauguration: Tourneo Mini Busses 73

Audi South Africa Inauguration: A8 Security Vehicle + 5 Luxury Vehicles 137

Mahindra Inauguration: 5x SUV/ MPV seven seater 50

Hyundai SA Inauguration: Various vehicles (Mini bus and support) 27

Nissan SA Inauguration: 10 x Nissan Infinity Luxury Vehicles + 3 Mini Buses 99

BMW SA Inauguration: 150 Vehicles (3,5 and 7 Series) 2,630

Passenger Rail Agency of South Africa Inauguration: Provision of 30x 60 Seater buses 1,984

Phakisa Christmas gifts chocolates, note pads 1


Sponsored accommodation for two officials to attend training on Quantifying Urban Transport Greenhouse Gas Emissions

9

Smit Amandla Gala Dinner at World Maritime Day celebration 35



337


2014/15 2013/14


International Labour Organisation Sponsored air travel and subsistence for an official to attend a meeting of experts on Maritime Occupational Safety and Health

52


Sponsored traveling and accommodation for an official to attend a transport exchange mission to build capacity in chemicals management and climate change

39

International Maritime Safety and Environment Academy Sponsored tuition fees and accommodation for two officials to attend a course on the ISPS Code Implementation

56

International Centre for Alcohol Policies Sponsored traveling costs for an official to attend an Africa Union Road Safety Status meeting

11

Audi South Africa Test driving of Audi vehicles at the Annual Transport Awards 5

Air Mercy Services (AMS) Sponsored a Hangar for Career Exhibitions during the celebration of the International Civil Aviation Day at Kimberly Airport

70

SA-USA Aviation Trade Forum Sponsored accommodation for 13 officials to attend the Forum 52

Air Traffic and Navigation Services Company Ltd. Sponsored the cost of accommodation for the first Kwa-Zulu Natal Regional Airport Awareness Workshop

3

Subtotal

5,448 22,880

TOTAL

6,177 22,880



338

ANNEXURE 1I

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP 2014/15 2013/14

R'000 R'000

Made in kind

Flowers and fruit baskets for hospitalised employees 2 3

Wreaths for funerals of employees and their families 3 Sponsorship of South African Women in Aviation 100 TOTAL 105 3



339

ANNEXURE 2A

STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITES

NAME OF PUBLIC ENTITY

State Entity’s PFMA

Schedule type (state year

end if not 31 March)

Number of shares held Cost of investment R'000

Net Asset Value of investment

R'000

Profit/(Loss) for the year R'000

Los-ses gua-rante

ed

% Held 14/15

% Held 13/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

Yes/No

National/Provincial Public Entity

Passenger Rail Agency of South Africa Ltd. 3B 100.0% 100.0% 4,248,258,440 4,248,258,440 4,248,259 4,248,259 550,063 1,730,792 (1,180,729) 285,175 No Airports Company Ltd. 2 74.6% 74.6% 372,994,884 372,994,884 559,492 559,492 13,089,754 11,654,184 1,680,194 1,541,660 No Air Traffic and Navigation Services Company Ltd. 2 100.0% 100.0% 190,646,000 190,646,000 190,646 190,646 1,903,561 1,626,356 277,205 244,262 No S.A. National Roads Agency Ltd. 3A 100.0% 100.0% 4,000 4,000 1,091,044 1,091,044 232,384,267 233,390,518 (299,382) (2,776,431) No Road Traffic Management Corporation 3A

562,103 796,161 (234,058) 373,922 No

Cross Border Road Transport Agency 3A

65,999 62,580 3,420 (46,516) No

Road Accident Fund 3A

(115,695,912) (90,797,758) (24,898,451) (17,229,566) No

Railway Safety Regulator 3A

19,522 4,501 15,020 2,919 No

South African Maritime Safety Authority 3A

(45,628) 28,206 (79,490) (140,296) No



340

ANNEXURE 2A

STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITES

NAME OF PUBLIC ENTITY

State Entity’s PFMA

Schedule type (state year

end if not 31 March)

Number of shares held Cost of investment R'000

Net Asset Value of investment

R'000

Profit/(Loss) for the year R'000

Los-ses gua-rante

ed

% Held 14/15

% Held 13/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

Yes/No

South African Civil Aviation Safety Authority 3A

158,549 129,645 26,264 1,297 No

Ports Regulator 3A

6,550 8,299 512 9 No Road Traffic Infringements Agency 3A

100,720 60,116 40,603 47,225 No

Subtotal

4,811,903,324 4,811,903,324 6,089,441 6,089,441 133,099,548 158,693,600 (24,648,892) (17,696,340)



341

ANNEXURE 2B

STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO ENTITES (continued)

NAME OF ENTITY Nature of business

Cost of investment R'000 Net Asset Value of investment R'000

Amounts owing to Entities R'000

Amounts owing by Entities R'000

2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

Controlled entities

Passenger Rail Agency of South Africa Ltd. Public transport 4,248,259 4,248,259 550,063 1,730,792

Airports Company Ltd. Airports 559,492 559,492 13,089,754 11,654,184

Air Traffic and Navigation Services Company Ltd. Air traffic control 190,646 190,646 1,903,561 1,626,356

S.A. National Roads Agency Ltd. Roads 1,091,044 1,091,044 232,384,267 233,390,518

Road Traffic Management Corporation Road traffic

562,103 796,161

7,574

Cross Border Road Transport Agency Cross border

65,999 62,580

Road Accident Fund Road accidents

(115,695,912) (90,797,758) Railway Safety Regulator Rail safety

19,522 4,501

South African Maritime Safety Authority

Maritime safety regulation

(45,628) 28,206

22,322

South African Civil Aviation Safety Authority

Civil Aviation safety regulation

158,549 129,645

286

Ports Regulator Ports regulation

6,550 8,299

25


Road traffic infringements

100,720 60,116

Driving License Card Account Driving license cards

239,748 191,984

442

TOTAL

6,089,441 6,089,441 133,339,96 158,885,584 - - - 30,649



342

ANNEXURE 3A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2015 - LOCAL

GUARANTOR INSTITUTION Guarantee in respect of

Original guaranteed

capital amount

Opening balance 1 April 2014

Guarantees draw downs during the

year

Guaranteed repayments/ cancelled/ reduced/ released

during the year

Revaluations Closing balance 31 March 2015

Guaranteed interest for year ended 31 March

2015

Realised losses not

recoverable i.e. claims paid out

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Motor Vehicles

Stannic

4,020 -

-

Subtotal 4,020 - - - - - - -

Housing

ABSA

183 -

- First National Bank

35 -

-

African Bank

21 -

- NBS

42 -

-

Nedcor (Nedbank)

186 -

- Saambou Bank

21 -

- Standard Bank

43 -

-

VBS Mutual Bank

81 -

-

612 - - - - - - -

Other

S.A. National Roads Agency Ltd. Capital Market loans 31,910,000 16,081,000 11,069,068 1,250,000 25,900,068 361,883 S.A. National Roads Agency Ltd. N1 Loan 1,036,523 735,415 109,450 625,965 67

S.A. National Roads Agency Ltd. SZ Bonds & Money Market Loans

6,000,000 5,679,000 1,278,150 4,400,850 -

S.A. National Roads Agency Ltd. EIB Loan 1,146,702 1,146,702 16,484 1,130,218 16,466 Passenger Rail Agency of South Africa Ltd.

Obligations of Autopax (Pty) Ltd. for inter-city buses

1,216,776 92,064 50,508 41,556 6,654

Subtotal 41,310,001 23,734,181 11,069,068 2,704,592 - 32,098,657 385,070 -

TOTAL

41,314,633 23,734,181 11,069,068 2,704,592 - 32,098,657 385,070 -



343

ANNEXURE 3B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2015

Nature of liability

Opening balance 1 April 2014

Liabilities incurred

during the year

Liabilities paid/

cancelled/ reduced

during the year

Liabilites recoverable

(Provide details

hereunder)

Closing balance

31 March 2015

R'000 R'000 R'000 R'000 R'000

Claims against the department Motor vehicle damages 160 45 22

183

Claim for emotional shock 711

711

Claims for unlawful arrest 540

540

-

Claim for developing a policy 13,500

13,500

Claim for services rendered 433 159

592

Claim against Road Accident Fund prescribed 9,843 775

10,618

Claim for transfer payments withheld 83,473

83,473

-

Claim for traveling costs 8,668

8,668

Claim for exhibition stand not paid for

27 27

-

TOTAL 117,328 1,006 84,062 - 34,272



344

ANNEXURE 4 CLAIMS RECOVERABLE

Confirmed balance

outstanding Unconfirmed balance

outstanding Total Cash in transit at year end

2014/15*

GOVERNMENT ENTITY 31/03/2015 31/03/2014 31/03/2015 31/03/2014

31/03/2015 31/03/2014

Receipt date up to six (6)

working days after year end Amount

R'000 R'000 R'000 R'000 R'000 R'000

R'000

DEPARTMENTS Department of Energy

169 - 169 Department of Basic Education

18 - 18

Department of Cooporative Government and Traditional Affairs

14 - 14 Department of Correctional Services

75 132 75 132

Department of Home Affairs

- - Department of International Relations and Cooperation

191 2 191 2

Department of Justice and Constitutional Development

2 3 2 3 Department of Public Service and Administration

11 - 11

Department Of Public Works

67 - 67 S.A. National Defense Force

3 2 3 2

South African Police Services

488 25 488 25 Gauteng Department of Community Safety

23 - 23

Gauteng Department of Education

18 18 18 18 Gauteng Department of Transport

- -

Kwa-Zulu Natal Department of Human Settlements

52 - 52 North West Department Of Public Works

13 13 13 13

Kwa-Zulu Natal State Attorney

50 - 50 Department of Labour

161

161 -

Department of State Security

190

190 - Department of Small Business Development

82

82 -



345

ANNEXURE 4 CLAIMS RECOVERABLE

Confirmed balance



2014/15*

GOVERNMENT ENTITY 31/03/2015 31/03/2014 31/03/2015 31/03/2014

31/03/2015 31/03/2014

Receipt date up to six (6)

working days after year end Amount

R'000 R'000 R'000 R'000 R'000 R'000

R'000

Sub total - 1,223 599 1,223 599

-

OTHER GOVERNMENT ENTITIES Driving License Card Account

780 442 780 442 Independent Ports Regulator

25 25 25 25

Natal Sharks Board

438 - 438 Road Traffic Management Corporation

6,766 7,574 6,766 7,574

Roads Agency Limpopo

2,474 - 2,474 S.A. Civil Aviation Authority

286 - 286

S.A. Maritime Safety Authority

22,168 22,168 22,168 22,168 Sub total 29,739 33,407 29,739 33,407 -

Total - - 30,962 34,006 30,962 34,006

-



346

ANNEXURE 5 INTER-GOVERNMENT PAYABLES

Confirmed balance



2014/15*

GOVERNMENT ENTITY 31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014

Payment date up to six (6) working days before year

end Amount

R'000 R'000 R'000 R'000 R'000 R'000

R'000

DEPARTMENTS Current The Presidency

46

- 46 Department of Water Affairs

35

- 35

Total Departments - 81 - - - 81

-

OTHER GOVERNMENT ENTITY Current Special Investigating Unit

15 - 15 State Attorney Pretoria

11 - 11

Total Other Government Entities - - - 26 - 26

TOTAL INTERGOVERNMENTAL - 81 - 26 - 107



347

ANNEXURE 6

INVENTORY

2014/15 2013/14

Quantity R'000 Quantity R'000

Inventory

Opening balance

491 47

385 29

Add/(Less): Adjustments to prior year balances

Add: Additions/Purchases - Cash

11,073 9,973

16,625 13,687

Add: Additions - Non-cash

(Less): Disposals

(Less): Issues

(11,071) (9,978)

(16,520) (13,679)

Add/(Less): Adjustments

1 10

Closing balance

493 42

491 47



348

ANNEXURE 7A

INTER-ENTITY ADVANCES PAID (note 10.1)

ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding

Total

31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014

R'000 R'000 R'000 R'000 R'000 R'000

NATIONAL DEPARTMENTS

Department of International Relations and Cooperation

3,715 2,731 3,715 2,731

Subtotal - 3,715 2,731 3,715 2,731

PROVINCIAL DEPARTMENTS

Northern Cape Provincial Government

631

631 -

Subtotal - 631 - 631 -

OTHER INSTITUTIONS

- -

Government Communications and Information Services 1,760 1,250

1,250 1,760

Subtotal 1,760 1,250 - 1,250 1,760

TOTAL - 1,760 5,596 2,731 5,596 4,491