MTEF BUDGET 2018/19 2020/21 - Amazon Web …pmg-assets.s3-website-eu-west-1.amazonaws.com/South...3 Diamond Inspectorate Precious Metals and Beneficiation The focus of this programme

1

ANNUAL PERFORMANCE PLAN

2018/19

WITH

MTEF BUDGET 2018/19 – 2020/21

2

PART A: STRATEGIC OVERVIEW ________________________________________________

The SADPMR comprises of three programmes, namely:-

Programme 1: Administration

The purpose of this programme is to enable the SADPMR to deliver on its mandate by

providing support management services and administrative support. It consists of the

following sub-programmes:-

Finance;

Human Resources;

Corporate Governance;

Communication;

Information Communication Technology (ICT);

Legal Services and;

Security.

The main focus of this programme is to strengthen compliance and governance with the

Regulator. The priority focus areas will include:-

Improving service delivery;

Facilitating alignment of budget and spending to strategy;

Improving controls to achieve clean audit outcomes; and

Enforcing compliance with the PFMA and other governance legislation.

Programme 2: Diamond Trade

The purpose of this programme is to regulate and facilitate the buying, selling, exporting and

importing of diamonds. This is to ensure equitable access and local beneficiation of

diamonds as well as compliance with the Kimberley Process Certification Scheme (KPCS).

The programme consists of the following sub-programmes:-

Diamond Exchange and Export Centre (DEEC);

Government Diamond Valuator (GDV) and

Kimberley Process Certification Scheme (KPCS).

Programme 3: Regulatory Compliance

The purpose of this programme is to enforce compliance with the Diamond Act, Precious

metals Act as well as the Diamond Export (Administration) Levy Act. The programme

consists of the following sub-programme:-

Licensing

3

Diamond Inspectorate

Precious Metals and Beneficiation

The focus of this programme is twofold: (a) to issue licenses for diamond and precious

metals businesses for trade and beneficiation; (b) Compliance inspections to ensure

transformation and adherence to the legislation.

4

PART B: PROGRAMMES/STRATEGIC OBJECTIVES

____________________________________________________________________

Schedule of performance indicators and targets for 2018/19 to 2020/21

(a) PROGRAMME 1: ADMINISTRATION

Strategic Objective Justification/Key Activities

To enforce compliance with the legislative

requirements

INTERNAL

Comply with Legislation, policies and procedures

Improve organisational capacity for

maximum execution of excellence

Implement the approved Human Resource (HR) Plan

Implement the approved SADPMR communication policy

Implement Minimum Information Security Standards (MISS)

Develop action plans to address audit findings

Provide legal support to the Regulator

5

AUDITED ACTUAL PERFORMANCE Estimated

performance

at 31 March

MEDIUM- TERM TARGETS ACTIONS/

STRATEGIC

INITIATIVES

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021

Reduction in

the number of

repeat audit

findings

2 2 5 Less than 5 Less than 5 Less than 5 Less than 5 Implement the

recommended

corrective

measures

All programmes March

2019

Number of HR

plan pillars

implemented

Approval of the

HR plan

5 5 5 5 5 5 Implement the

following HR

pillars;

• Employer/ employee relations management

• PMDS

• HRD policy/ strategy

• OD practices

• Implement Talent Management strategy

HR March

2019

Number of

engagements

with internal

and external

stakeholders

12 12 12 12 15 17 21 Implement

communications

activities

Communication March

2019

6


performance

at 31 March


STRATEGIC

INITIATIVES

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021

Number of

Master System

Plan (MSP)

programmes

implemented

Master System

Plan approved

Master System

Plan approved

2 2 3 3 3 Implementation of Disaster recovery plan

Development and implementation of Web admin system

ICT March

2019

Risk mitigation

measures

implemented

relating to

physical

security

3 3 3 3 3 3 3 Conduct Emergency evacuation drills

Submit employees security-vetting forms to SSA

Implementation of vetting procedures

Security March

2019

Percentage of

matters

referred for

100% 100% 100% of

requests

received and

100% of

requests

received

100% of

requests

received

100% of

requests

received

100% of requests received and addressed

Provide legal

advice to the

Regulator

Legal services March

2019

7


performance

at 31 March


STRATEGIC

INITIATIVES

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021

legal advice

and opinions

addressed

within 30 days

addressed and

addressed

and

addressed

and

addressed

Percentage of

legal opinions

obtained on

behalf of the

SADPMR

n/a 100% of requests

received and

addressed

100% of

requests

received and

addressed

100% of

requests

received and

addressed

100% of

requests

received

and

addressed

100% of

requests

received

and

addressed

100% of

requests

received and

addressed

Facilitate legal

opinions on

behalf of the

Regulator


2019

Percentage of

Contracts and

SLA’s vetted

within 30 days

100% 100% 100% of

contracts and

SLA’s vetted

100% of

contracts and

SLA’s vetted

100% of

contracts

and SLA’s

vetted

100% of

contracts

and SLA’s

vetted

100% of

requests

received and

addressed

Review and

advice on all

contracts

received


2019

Quarterly Targets

Performance

Indicator(s)

2018/19 Q1 Q2 Q3 Q4 Actions /Strategic initiatives Who When

Reduction in the

number of repeat

5 0 0 3 2 Develop or review Policies,

procedures/guidelines

All programmes March 2019

8

Performance

Indicator(s)


audit findings

Number of HR plan

pillars implemented

5 5 5 5 5 Implement the following HR

pillars;

• Employer/ employee relations management

• PMDS

• HRD policy/ strategy

• OD practices

• Implement Talent Management strategy

HR March 2019

Number of

engagements with

internal and external

stakeholders

15 4 4 3 4 Develop an communication

plan for internal and external

stakeholders

Communication March 2019

Number of MSP

programmes

implemented

3 0 1 1 1 Implementation of Disaster recovery plan

Development and implementation of Web admin system

ICT March 2019

Risk mitigation

measures

implemented relating

to physical security

3 0 1 1 1 Conduct Emergency evacuation drills

Implementation of vetting procedures

Security March 2019

Percentage of matters

referred for legal

advice and opinions

addressed within 30

100% of

requests

received and

100% of

requests

received and

100% of

requests

received and

100% of

requests

received and

100% of

requests

received

and

Drafting, reviewing commenting, and recommending

Legal Services March 2019

9

Performance

Indicator(s)


days addressed addressed addressed addressed addressed

Percentage of legal

opinions obtained on

behalf of the SADPMR

100% of

matters

addressed

100% of

matters

addressed

100% of

matters

addressed

100% of matters

addressed

100% of

matters

addressed

Facilitate the review of the Codes of Good Practice applicable to diamonds and precious metals

Legal Services March 2019

Percentage of

Contracts and SLA’s

vetted within 30 days

100% of

contracts

vetted

100% of

contracts

vetted

100% of

contracts

vetted

100% of

contracts vetted

100% of

contracts

vetted

Drafting , reviewing, comment, and recommending of contracts

Legal Service March 2019

10

(b) PROGRAMME 2: DIAMOND TRADE


To improve competitiveness, sustainable development and job creation in the diamond and precious metals industry

COMPETITIVENESS

DEEC - Facilitate diamond trade

SUSTAINABLE DEVELOPMENT

Facilitate skills development initiatives for the industries

To promote equitable access to resources for local beneficiation

Increase access to diamonds for local beneficiators

Implement the diamond marketing strategy of the DEEC

To enforce compliance with the legislative requirements

Provide diamond valuation services

11


performance

at 31 March

MEDIUM- TERM TARGETS Actions/ Strategic

Initiatives

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Number of skills

initiatives facilitated

for the industries

2 2 2 2 5 5 5 • Provide training on GDV planning machines;

• Facilitate training in diamond valuation

GDV March

2019

Number of

Beneficiators

accessing the DEEC

176 131 135 180 5% of the

previous

baseline

8% of the

previous

baseline

8% of the previous baseline

• Implementation of the diamond marketing strategy of the DEEC

• Promote local beneficiation by allocating certain viewing rooms to Beneficiators

DEEC March

2019

Number of clients

accessing DEEC

1234 3546 2845 2860 2880 2885 2890 Implement the DEEC

Marketing strategy

DEEC March

2019

12

Percentage of

valuations conducted

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

Implement the Diamonds

Act and related legislation

GDV March

2019

% of disputes on

valuations regarding

fair market value

lodged

n/a n/a 0% Maximum of

2% disputes

Maximum of 2%

disputes Maximum of

2% disputes Maximum of

2% disputes Implement the Diamonds

Act and related legislation

GDV March

2019

% compliance to KPCS

requirements

100%

complianc

e with

KPCS

minimum

requirem

ents

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

requirements

100%

compliance

with KPCS

requirements

100%

compliance

with KPCS

requirements

Implement KPCS statutes

and related legislation

Issuing of KPCS certificates

Submission of quarterly reports (statistics)

DEEC

KPCS

March

2019

Quarterly Targets

Performance Indicator(s) 2018/19 Q1 Q2 Q3 Q4 Actions /Strategic initiatives Who When

Number of skills initiatives

facilitated for the industries

5 2 1 1 1 Provide training on GDV planning machines;

Facilitate training in diamond valuation

GDV March 2019

Increase in numbers

Beneficiators accessing at the

DEEC

5% of previous

Baseline

1% of

previous

Baseline

2% of

previous

Baseline

1% of

previous

Baseline

1% of

previous

Baseline

Implementation of the diamond marketing strategy of the DEEC

Promote local beneficiation by allocating certain

DEEC March 2019

13

Performance Indicator(s) 2018/19 Q1 Q2 Q3 Q4 Actions /Strategic initiatives Who When

viewing rooms to Beneficiators

Number of clients accessing

DEEC

2880 720 720 720 720 Implement the DEEC Marketing

strategy DEEC March 2019

% of valuations conducted at

fair market value

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

100% of

diamonds

offered/

presented

Implement the Diamonds Act

and related legislation GDV March 2019

% of disputes on valuations

regarding fair market value

lodged

Maximum of





2% disputes Implement the Diamonds Act

and related legislation GDV March 2019

% compliance to KPCS and

relevant legislation

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

100%

compliance

with KPCS

minimum

requirements

Implement KPCS statutes and

related legislation

Issuing of KPCS certificates

Submission of quarterly reports (statistics)

DEEC

KPCS

March 2019

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(c) PROGRAMME 3: REGULATORY COMPLIANCE


To improve competitiveness, sustainable development and job creation in the diamond and precious metals industry

COMPETITIVENES

Issue licenses to enable diamond and PM trade.

SUSTAINABLE DEVELOPMENT

BUSINESS SUSTAINALIBITY - Assist prospective entrepreneurs and inactive beneficiation licensees in the diamond and precious metals industries

Facilitate skills development initiatives for the industries

JOB CREATION

Oversee the provision for issuing of beneficiation licenses

To enforce compliance with the legislative requirements

EXTERNAL

Oversee the provision of the compliance audits on licensees

Oversee the provision of inspection services within the diamond and precious metals sectors

To transform the diamonds and precious metals industries

Promote participation of HDSAs in the diamond and precious metals industries

Decrease the number of inactive businesses of the historically disadvantaged individuals

15


performance at

31 March


Initiatives

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Number of licenses

issued within 60

working days based

on the completeness

of the applications

136 195 195 196 75%

applications

received

80% of

applications

received

85% of applications received

Implement the Broad Based Socio-Economic Empowerment Charter

Licensing March

2019

Number of license

renewals processed

within 60 working

days based on

completeness of the

applications

N/A 90 90 91 100% of

applications

received

100% of

applications

received

100% of applications received

Implement the Broad Based Socio-Economic Empowerment Charter

Licensing March

2019

Number of new

entrepreneurs

assisted

8 9 9 9 12 14 16 Assist new entrepreneurs in line with new licence issued

Precious Metals

March

2019

Number of BBSEEC

compliance

inspection/audits

conducted

405 408 408 409 471 481 491 Implement the

Diamonds Act and

Precious Metals

Act

Assess ownership (HDSA)

Skills development

Licensing March

2019

16


performance at

31 March


Initiatives

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Monitoring of fronting through audit inspections

Number of

inspections conducted

1444 1478 1478 1479 1615 1620 1625 Implement the Diamond and precious metals legislation

Precious Metals


March

2019

Number of

Beneficiation licences

issued

63 66 66 67 5% of

achieved

baseline

5 % of

achieved

baseline

5% of achieved

baseline

Implement the

Diamonds Act and

Precious Metals

Act

Process license applications as per legislative requirements

Licensing March

2019

Business Case

Document Developed

(State Bourse)

n/a n/a Establish

baseline

Consultation

with

stakeholders

Obtain

approval

from the

DMR for

Bourse

Drafting

and

approval of

business

case

Marketing and

branding of the

Bourse

CEO March

2019

17


performance at

31 March


Initiatives

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Workshops and

information

conducted

n/a Establish

baseline

4 4 6 8 10 Implement

transformation

plan for the

Diamonds and

PMs Process

license

applications as per

legislative

requirements

Licensing March

2019

Number of inactive

businesses engaged 22 31 31 32 36 41 46 Facilitate a

workshop for

inactive licensees

with regards to:

Diamond and Precious metal product suppliers, import and export and beneficiation.

Where and how diamonds and precious metal may be accessed


March

2019

18


performance at

31 March


Initiatives

Who When

Performance

Indicator(s)

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Existing Gold loan and platinum advance schemes

Inspection Checks conducted on business premises for approval

Facilitate partnerships with lending institutions

Number of skills


for the diamond and

precious metals

industries

3 3 3 3 5 5 5 Facilitate

experiential

training for cutting

and polishing as

well as jewellery

manufacturing

Precious Metals


March

2019

Number of licencees

verified against their

commitments

n/a Establish

baseline

70 70 80 85 90 Transformation Team

March

2019

19

Quarterly Targets

Performance

Indicator(s)


Number of new

licences issued within

60 working days

based on

completeness of the

applications

5% of

previous

baseline

2% of

previous

baseline

1% of

previous

baseline

1% of

previous

baseline

1% of

previous

baseline

Implement the legislation


Licensing March 2019

Number of license

renewals processed

within 60 working

days based on

completeness of the

applications

100% 100% 100% 100% 100% Implement the legislation



Number of BBSEEC

compliance

inspections/audits

conducted

471

117 117 117 120 Implement the Diamonds Act

and Precious Metals Act

Assess ownership (HDSA)

Skills development

Monitoring of fronting through audit inspections


Number of

inspections conducted

1615 403 404 403 405 Implement the Diamond and precious metals legislation

Precious Metals


March 2019

20

Performance

Indicator(s)


Number of

Beneficiation licences

issued

5% of the

previous

baseline

2% of the

previous

baseline

1% of the

previous

baseline

1% of the

previous

baseline

1% of the

previous

baseline

Implement the Diamonds Act




Business Case

Document Developed

(State Bourse)

Consultati

ons with

Stakehold

ers

Consultation

with

Government

Consultation

with

Government

Consultation

with external

stakeholders

Consultation

with external

stakeholders

CEO March 2019

Workshops and

information

conducted

6 2 2 1 1 Implement the Diamonds Act


Process license applications as

per legislative requirements


21

Performance

Indicator(s)


Number of inactive

businesses engaged

36 9 9 9 9 Facilitate a workshop for

inactive licensees with regards

to:






March 2019

Number of skills


for the industries

5 1 2 1 1 Focus on facilitating development of platinum jewellery-making skills

Assist jewellery manufacturing & design graduates with Trade Test preparation and completion by partnering with MQA

Precious Metals


March 2019

22

Performance

Indicator(s)


Number of new

entrepreneurs

assisted

12 3 3 3 3 Provide information and advice

on:






Precious Metals March 2019

Number of licences

verified against their

commitments

80 20 20 20 20 Transformation Team March 2019

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DETAILED BUDGET Table A.3 South African Diamond and Precious Metals Regulator

Statement of financial performance

Budget Audited

Outcome Budget Audited

Outcome Budget Audited

Outcome Budget

estimate Revised estimate

Outcome/

Budget Averag

e %

Averag

e growth

rate (%)

Expen- diture/

total: Average

(%) Medium-term estimate

Average growth

rate (%)

Expen- diture/

total: Average

(%)

R thousand 2014/15 2015/16 2016/17 2017/18 2014/15-2017/18 2018/19 2019/20 2020/21 2017/18 - 2020/21

Revenue

Tax revenue – – – – – – – – – – – – – – – –

Non-tax revenue 34 440 39 742 38 147 42 568 41 398

41 398 46 068 46 068 43.7% 5.0% 44.0% 53 385 56 375 59 475

8.9% 45.9%

Sale of goods and services other than capital assets

33 350 34 442 36 353 36 302 37 653

37 653 40 290 40 290 40.5% 5.4% 38.5% 47 855 50 535 53 314

9.8% 40.9%

of which:

Administrative fees – – – – – – – – – – – – – – – –

Sales by market establishment

33 350 34 442 36 353 36 302 37 653

37 653 40 290 40 290 40.5% 5.4% 38.5% 47 855 50 535 53 314

9.8% 40.9%

Other sales – – – – – – – – – – – – – – – –

Other non-tax revenue

1 090 5 300 1 794 6 266 3 745

3 745 5 778 5 778 3.3% 2.9% 5.5% 5 530 5 840 6 161

2.2% 5.0%

Transfers received 45 878 47 810 50 527 50 527 53 205

53 205 55 865 65 865 56.3% 11.3% 56.0% 59 105 62 415 5 848

-0.0% 54.1%

Total revenue 80 318 87 552 88 674 93 095 94 603

94 603 101 933 111 933 100.0% 8.5% 100.0% 112 490 118 789 25 323

3.8% 100.0%

Expenses

Current expenses 72 570 92 535 88 318 86 676 93 215

93 215 98 633 98 633 99.9% 2.2% 99.9% 109 247 115 365 121 710

7.3% 99.9%

Compensation of employees

52 109 59 008 67 574 64 608 70 535

70 535 75 919 75 919 75.1% 8.8% 72.6% 84 231 88 948 93 840

7.3% 77.0%

Goods and services 18 817 32 488 20 719 22 031 19 852

19 852 20 375 20 375 22.8% -14.4% 25.6% 23 080 24 372 25 713

8.1% 21.0%

Depreciation 1 610 1 004 – – 2 828

2 828 2 339 2 339 1.9% 32.6% 1.6% 1 936 2 044 2 157

-2.7% 1.9%

Interest, dividends and rent on land

34 35 25 37 – – – – 0.0% -100.0% 0.0% – – – – –

Transfers and subsidies

97 101 121 128 121

121 135 135 0.1% 10.2% 0.1% 145 153 162

6.2% 0.1%

Total expenses 72 667 92 636 88 439 86 804 93 336

93 336 98 768 98 768 100.0% 2.2% 100.0% 109 392 115 518 21 871

7.3% 100.0%

Surplus/(Deficit) 7 651 (5 084) 235 6 291 1 267

1 267 3 165 13 165 -237.3% 3 098 3 271 3 451

-36.0%

24

Documents

MTEF BUDGET 2018/19 2020/21 - Amazon Web …pmg-assets.s3-website-eu-west-1.amazonaws.com/South...3 Diamond Inspectorate Precious Metals and Beneficiation The focus of this programme