Select Committee on Public Services Department of Transport Annual Report 2010/11 Director-General Mr George Mahlalela Date: 07 February 2012 1 PCMS_GENERAL_n397155_v1_Presentation_DoT_Annual_Report_2010_2011_Feb2012.ppt

Select Committee on Public Services

Department of Transport

Annual Report 2010/11

Director-GeneralMr George MahlalelaDate: 07 February 2012

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PCMS_GENERAL_n397155_v1_Presentation_DoT_Annual_Report_2010_2011_Feb2012.ppt

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Contents

Section 3: Highlights of 2010/11 Financial Statements

Section 2: Audit Outcomes for 2010/11

Section 4: Human Resource Management & Development

Section 1: Programme PerformanceReport for 2010/11


• Highlights of the performance of the Department

• Selected performance indicators

• Detailed Performance in 2010/11:• Per outcome • Per programme

Section 1: Programme Performance Report for 2010/11

3


Highlights of the Performance of the Department in 2010/11

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• The development of integrated public transport systems, including the bus rapid transit networks and taxi empowerment continued

• Investments continued in rail infrastructure, stations and rolling stock and the Gautrain rapid rail link

• The long distance bus company, Autopax, was recapitalised.• Investment in the national road network and the focus on asset

preservation and maintenance has continued• Completed the national master plan, and the 2020 public transport

action plan• Two Chapters of the South African Maritime Chamber were

established in Kwa-Zulu Natal and the Eastern Cape with the intention of organising one voice of BEE companies and to meet the requirements in bilateral negotiations

• The process of ratifying the African Union Maritime Charter has progressed successfully


5

• A draft version of the Maritime Transport Policy was tabled and is currently being reviewed

• Phase one operational plans to support the public transport strategy were developed in five cities. Three other cities developed draft operational plans

• Technical reviews of transport were undertaken in Cape Town, Johannesburg, Tshwane, Nelson Mandela Bay and Buffalo City

• The Gautrain project was 99,1% complete by the end of February 2011, compared to 99,8% planned

• The draft Road Accident Benefit Scheme policy has been revised and finalised following consideration of public comments, and the legislative drafters for the no-fault policy / Road Accident Benefit Scheme have been appointed

• Public Transport Integration Committees were established in all provinces.

• Draft 9 of the performance based quality contract model for the Public Transport operations grant was developed and consulted

Highlights of the Performance of the Department in 2010/11 (Continued)

6

Rea Vaya Phase 1A Starter Service:• Commenced on 31 August 2009• Operates on 25 kilometers of trunk route• Passenger numbers increased from a daily average of 11,800 in

September 2009 to highs of 20,000 per day in January 2010• A total of 28 articulated buses with a carrying capacity of 117

passengers and 6 complementary buses with a carrying capacity of 81 passengers are used to operate 203 trips per day

• The City of Johannesburg handed over Rea Vaya operations to the Taxi Operators Investment Company, formally taking control of the Bus Rapid Transport's bus operating company to operate Rea Vaya’s Phase 1A



7

Legislation implemented:• Implemented legislation to have buses tested for roadworthiness

every 6 months• Transport Acts Repeal Bill

Legislation approved by Parliament• Safe Container Bill• Merchant shipping (Safe Containers) Bill

Legislation processed for debate in Parliament:• South African Maritime Aeronautical Search and Rescue

Amendment Bill 2010• Maritime Transport Security Bill 2010



8


Legislation to be approved by the Minister and Cabinet:• The Civil Liability Convention Bill• Oil Pollution Compensation Bill• Electronic Fare Collection Regulations• Merchant Shipping Civil Liability Convention Bill 2010• Merchant Shipping International Oil Pollution Compensation Fund

Contribution Bill 2010

(Continued)


9


The following studies were finalised:• The feasibility of the development of a Transport Data Act• The contribution of civil aviation to the South African economy• The post implementation practicalities of inter-modal transport• The socio-economic impact of open skies / Yamassoukro

Declaration• The socio-economic benefits of roads on the South African

economy• The development of car ownership and use in South Africa

(Continued)


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Selected performance indicators

Indicators Annual performance Notes

Past Current Projected

2008/09 2009/10 2010/11 2011/12 2012/13 2010/11

Number of integrated rapid public transport network and operational plans developed per year in metros and large cities

4 5 3 2 2 I running

2 operational plans

Greater Kei Municipality

Number of taxis scrapped per year

9,208 11,616 9,164 8,682 9,117 5,908

Number of fatal road accidents per year

10,488 9,439 8,495 7,646 6,881 10,902

Number of bicycles procured and distributed per year

21,600 15,000 15,000 15,000 15,800 15,000 Procured

1,340 Distributed

Total number of districts with improved rural transport in integrated sustainable rural development nodes per year

3 3 3 4 6 3

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Detailed Performance in 2010/11 - Per outcome

Outcome 1 An effective and integrated infrastructure network that serves as a catalyst for social and economic development

Outcome 2 A transport sector that is safe and secure

Outcome 3 Improved rural access, infrastructure and mobility

Outcome 4 Improved public transport system

Outcome 5 Increased contribution to job creation

Outcome 6 Increased contribution of transport to environmental protection PCMS_GENERAL_n397155_v1_Presentation_DoT_Annual_Report_2010_2011_Feb2012.ppt

Planned output Actual performance (2010/11)

Key transport facilities developed

Completed Institutional Framework, identification of projects and implementation plan for the 2050 Vision for the Durban-Gauteng Transport Corridor

Maintenance and preservation of critical roads improved

• Road maintenance construction summit held in May 2010.• Terms of Reference being finalised for a review of current

funding and proposals for the maintenance of road maintenance fund

Resource utilisation plan developed for coal haulage roads

• Alignment of reclassification guideline with Road Access Management System complete.

• Draft reclassification guideline circulated

Priority passenger rail corridors developed and upgraded

• JHB-DBN High Speed Steering Committee and Secretariat established

• Awaiting Cabinet approval for endorsement of the High Speed Rail

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Outcome 1: An effective and integrated infrastructure network that serves as a catalyst for social and economic development


Enhance efficiencies and reliability in rail freight sector

• Ministerial Task Team on economic regulation was appointed

• Draft rail policy at consultative stage

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Outcome 1: An effective and integrated infrastructure network that serves as a catalyst for social and economic development (Continued)


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Outcome 2:A transport sector that is safe and secure


Safe rail infrastructure and equipment ensured

All planned railway police stations complete and handed over to the relevant authority

Accident & incident rates on roads reduced

• Periodic Vehicle Testing started off with implementation of six monthly testing of buses

• Feasibility study regarding the number of current registered vehicles completed

• Regulations published in terms of the National road Traffic Act

• Road Safety Councils established in 3 provinces• Draft SADC vehicle testing and overload standards

finalised

Road Accident Fund transformed into the Comprehensive Social Security System

• Consultation process finalised• The draft policy has been revised and finalised • The legislative drafter for the no-fault policy / Road

Accident Benefit Scheme has been appointed

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Outcome 2:A transport sector that is safe and secure (Continued)


Maritime transport safety and security improved

• Maritime security plans were approved• Certificates of Compliance were sent to the ports• Maritime security Bill in draft• Small vessel campaigns were conducted

Air transport safety and security improved

• Notice of re-issuing of Civil Aviation Regulations in terms of the Civil Aviation Act was published

• Aviation Safety Investigation Board in process of being appointed

• Committee to appeal decisions of the S.A. Civil Aviation Authority in process of being appointed


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Outcome 3:Improved rural access, infrastructure and mobility


Non-Motorised Transport (NMT) facilities, infrastructure & services improved

• Draft NMT policy developed• Final draft report presented on feasibility study for

Bicycle Manufacturing Plant – work being extended in 2011/12

Integrated Rural Public Transport Networks (IPTNs) rolled out in rural districts

• Not achieved due to budget constraints. A Rural accessibility mapping atlas similar to this had earlier been worked on for six (6) districts

Procure and distribute 15,000 bicycles

15,000 bicycles procured and 1,340 distributed


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Outcome 4:Improved public transport system


Integrated Rural Public Transport Networks (IPTNs) rolled out: Target was 3

• 1 running• 2 operational plans Greater Kei Municipality• Johannesburg launched new Phase 1a operating

company• Amended the Public Transport Infrastructure and

Systems Grant Framework to include the requirement for cities to have a specialist capacity to plan and implement these projects

Public Transport Industry formalised

• Successful upgrade of the current National Land Transport Information system (NLTIS) to comply with National Land Transport Act (NLTA)

• Provincial Regulatory Entity established in 1 province and being established in another. One province setting up a pilot project

• Data on small bus operators captured on the departmental database for 8 provinces

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Outcome 4:Improved public transport system (Continued)


Establish Public Transport Integration and Intermodal Planning Committees in all Provinces and Metros and an active Public Transport Integration Committee Forum at National level

• Public Transport Integration Committees established in all provinces

• Reviewed the structural composition of the 9 Committees

• A phase-in approach of incorporating only affected Municipalities in the Committee structure was adopted and implemented

• Re-structured committees started functioning actively in Northern Cape, Western Cape, eThekwini & Free State

2010 Transport arrangements coordinated

• Command centre was established and fully functional for the duration of the Soccer World Cup

• Infrastructure legacy projects that were funded from Public Transport Infrastructure and Systems Grant were all completed and in operation during the Soccer World Cup

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Outcome 5:Increased contribution to job creation


Job creation targets for transport sector set and achieved

• Job targets set for Provinces• Preliminary discussions held with S.A. Local

Government Association on establishing processes for engagement with municipalities on a range of roads development processes to identify best practice EPWP programmes

National procurement promoted

• Steering Committee consisting of the department, the Department of Trade and Industry, the Department of Public enterprises, National Treasury and the Passenger Rail Agency of South Africa is fully functional

• Implementation frameworks for increasing local spend were work-shopped internally, with transport public entities and provinces

• Draft Framework document to establish a B-BBEE Charter Council was finalised

• Draft Maritime policy and strategy were finalised• National Airports Development Plan finalised

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Outcome 6:Increased contribution of transport to environmental protection


Impact of transport on climate change reduced

• Literature review for emissions model complete and a business plan was developed

• Energy efficient framework report submitted to the United Nations 18th session of Commission on Sustainable Development

• Business plan for a strategy for noise reduction in all transport systems was developed


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Detailed Performance in 2010/11 - Per programme

P2 Transport Policy, Research and Economic Analysis

P3 Transport Regulation and Accident and Incident Investigation

P4 Integrated Planning and Inter-sphere Co-ordination

P5 Freight Logistics and Corridor Development

P6 Public Transport

P7 Public Entity Oversight and Border Operations and Control


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Detailed Performance in 2010/11Transport Policy, Research and Economic Analysis


Update travel analysis zone in preparation for National Household Survey

Travel analysis zones updated

Publication of Transport statistical Survey Bulletin

Bulletin for 2009 was completed

Successful provincial road shows on B-BBEE

Conducted 6 provincial road shows

Monitoring and Evaluation Framework and System for all policies, programmes and projects

Finalised the draft Monitoring & Evaluation Framework for the department

Guidelines for Target Setting

Finalised the draft Target Setting Framework for all modes of transport


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Detailed Performance in 2010/11Transport Regulation and Accident and Incident Investigation


Accident and incident rates on roads reduced

• inspected all Driving License Testing Centres on record (377)

• Evaluated 7 new sites

Maritime transport safety and security improved

• Two chapters of the South African Maritime Chamber were established in KZN and Eastern Cape

• Draft Maritime Transport Policy tabled for review

Air transport safety and security improved

South Africa was re-elected to the Council of the International Civil Aviation Organisation for 3 years


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Detailed Performance in 2010/11Integrated Planning and Inter-sphere Co-ordination


Finalise Scholar Transport Policy

Draft policy completed

S.A. National Women In Transport (SANWIT) structures and women owned business supported

• National and 7 provincial structures finalised

• Conducted skills workshops in three provinces

• 291 women audited and skills improved


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Detailed Performance in 2010/11Freight Logistics and Corridor Development


Harrismith Freight Logistics Hub

Completed Conceptual Document

Road Freight Strategy Draft Strategy completed

Rail Branch Line Strategy Draft Strategy Completed

Freight Border Optimisation Plans

Inception Report completed

Provincial Freight Forums Forums established in all nine provinces

Road Freight Strategy Final draft strategy awaiting approval


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Detailed Performance in 2010/11Public Transport


Reported under Outcome 4


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Detailed Performance in 2010/11Public Entity Oversight and Border Operations and Control


Electronic Performance Management System

Workflow models were finalised

Conclude Shareholder’s Compacts and Performance Agreements

Aligned Shareholder’s Compacts and Performance Agreements and concluded all

Border Control Oversight Framework developed

The Framework was finalised

Quarterly financial and performance oversight over public entities

Done for each quarter

Analysis reports issued for each quarter

Review tariff regimes Permit income for the Cross Border Road Transport Agency was reviewed to ensure financial sustainability

Risk Registers for Public Entities

• Draft guidelines finalised• Risk identification formed part of strategic Plans

REPORT ON LEGAL AND REGULATORY REQUIREMENTS

• Predetermined objectives • Reliability of information

• Compliance with laws and regulations:• Irregular expenditure

• Fruitless and wasteful expenditure

INTERNAL CONTROL• Leadership

COMMITMENTS TO ADDRESS INTERNAL CONTROL DEFICIENCIES

Section 2: Audit outcomes for 2010/11

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Predetermined objectives and reliability of information

Audit Report Actions taken Actions to be taken

Performance information was deficient in measurability:

Targets were not time bound in specifying the time period or deadline for delivery

• Targets in the strategic plan for 2011/12 to 2013/14 were time bound

• Annual and Quarterly Performance Plans were compiled for 2011/12

• Annual and Quarterly Performance Plans must be formally finalised for 2011/12

• Performance reports must be done for each quarter

Reliability of performance information:

For two specific outcomes, the validity of 25% of the reported targets could not be established as sufficient audit evidence and relevant source documentation could not be provided

• Commitments were made to the auditors to address deficiencies in internal control

• An implementation plan was developed to implement the commitments, containing the responsible officials and timelines for implementation

• Quarterly performance reports will be tabled for review at Executive Committee and Audit Committee meetings

• Programme Managers must sign off performance reports to ensure quality 29

Irregular expenditure

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5 cases were reported in 2010/11 amounting to R20,646,052-00

• Affected components must obtain legal opinions and take disciplinary steps before the case can be condoned

• Legal opinions were obtained in 2 cases amounting to R18,68m

• 1 Case amounting to R1,535,352 was not paid yet and the claim is disputed by the department

• The Accounting Officer indicated that disciplinary steps should be taken in all the remaining cases

Disciplinary steps were taken in 4 cases. One case not paid – claim disputed by the Department.

5 cases remained from previous years amounting to R693,363-29

• 1 Case was condoned• Disciplinary steps taken in 2 cases• In 2 cases, the responsible official

left the employ of the Department before disciplinary steps could be taken

The remaining 4 cases should be condoned: Disciplinary steps were already taken where possible and no losses occurred

Fruitless and wasteful expenditure


Year ended 31 March 2011:

26 new cases incurred in the year amounting to R50,113-52

• Recovered R1,307-00• Transferred to debt R44,527-62• Being recovered R1,689-90• Outstanding: 2 cases amounting

to R2,589-00

Representations obtained for “No Show” Committee to consider remaining 2 cases: The amounts to be written of

Outstanding at 31 March 2009/10 (excl. interest on bus subsidies):

19 cases amounting to R150,470-03

• Recovered 5 cases R25,623-65• Transferred to debt 7 cases

R28,828-83• Resolved 1 case R58,918-00• To write off 1 case R5,100-00• 5 outstanding cases R31,999-55

5 outstanding cases amounting to R31,999-55 to be resolved: 4 cases handed to Legal Services, 1 case still being investigated

Interest from 2008/09:

Interest on late payment of bus subsidies R2,173,000

Included in request for approval with funding in the Finance Act

Await Finance Act

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Internal Control: Leadership


• There was no review done on reported performance to ensure that there is compliance with applicable guidelines

• There was ineffective oversight over the reporting of predetermined objectives

• Leadership did not exercise its oversight responsibility over compliance and related controls. This resulted in irregular and fruitless and wasteful expenditure being incurred

An action plan was developed to implement commitments made by the Director-General to the auditors

A compliance checklist for reporting was developed and approved at the Executive Committee

An official was given the responsibility to oversee quarterly reporting until the post of Director: Strategic Planning and Monitoring can be filled

Programme Managers will be required to sign off on quarterly performance reports

Performance reports will be tabled for review at Executive and Audit Committee meetings

Performance reporting and compliance will be made part of performance contracts

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• Auditor’s Dashboard Report on the drivers of internal control

• Commitments to address deficiencies in internal control:

• Leadership • Financial and performance management

• Governance

• Compliance Template

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Commitments to address internal control deficiencies

Dashboard report

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DRIVERS

Good

In progress

Intervention required

LEADERSHIP

1.a Provide effective leadership based on a culture of honesty, ethical business practices and good governance, protecting and enhancing the best interests of the entity

1.b Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls

1.c Implement effective HR management to ensure that adequate and sufficiently skilled resources are in place and that performance is monitored

1.d Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes, and responsibilities

1.e Develop and monitor the implementation of action plans to address internal control deficiencies

1.f Oversight over public entities

1.g Establish an IT governance framework that supports and enables the business, delivers value and improves performance

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NOASSESSMENT

Dashboard report (continued)

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DRIVERS

Good

In progress


FINANCIAL AND PERFORMANCE MANAGEMENT

2.a Implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting

2.b Implement controls over daily and monthly processing and reconciling of transactions

2.c Prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information

2.d Review and monitor compliance with applicable laws and regulations

2.e Design and implement formal controls over IT systems to ensure the reliability of the systems and the availability, accuracy and protection of information

NO

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ASSESSMENT


Dashboard report (continued)

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DRIVERS

Good

In progress


GOVERNANCE

3.a Implement appropriate risk management activities to ensure that regular risk assessments, including consideration of IT risks and fraud prevention, are conducted and that a risk strategy to address the risks is developed and monitored

3.b Ensure that there is an adequately resourced and functioning internal audit unit that identifies internal control deficiencies and recommends corrective action effectively

3.c Ensure that the audit committee promotes accountability and service delivery through evaluating and monitoring responses to risks and providing oversight over the effectiveness of the internal control environment including financial and performance repor

NO

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ASSESSMENT

Commitments: Leadership

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Commitments:• Table performance reports (EXCO,• Audit Committee)• Part of performance agreements• Penalty regime• Compliance template

• Report actions taken to EXCO and Audit Committee

• Governance audit• Each Programme responsible• Report to EXCO on Board meetings• Minister to meet Chairpersons

• Develop integrated IT policy and address shortcomings per IT audit

Dashboard:

Performance reportingPerformance monitoring

Implement action plans to address weaknesses

Oversight over public entities

IT governance framework

Commitments: Financial and performance management

38

Commitments:

• Sign off on reports• Process for filing project reports• Filing on E-DOT

• Reports substantiated by evidence• Report poor performance to EXCO

• Establish a Compliance Unit• Develop compliance template• Report to EXCO on compliance

• Review eNaTIS system and database logs• Update Disaster Recovery Plan• Implement actions to address finding of the IT audit

Dashboard:

Performance reporting

Evidence of performance

Monitor compliance

Controls over IT systems

Commitments: Governance

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Commitments:

• Review framework, policy, strategy and risk management structures • Involve senior managers• Flatter specialised structure• Standing item on EXCO and OPC

• Flatter specialised structure• Training and skills transfer

Dashboard:

Risk management

Strengthen Internal audit

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Compliance template

The Executive Committee approved a detailed compliance template against which the status of high level compliance matters and reporting can be checked. The compliance template covers the following:

• Standing governance structures and procedures

• General reporting and other requirements

• Annual Report – high level requirements

• Budgeting

• Ad hoc reporting

• Reporting in terms of the Division of Revenue Act

• Reporting in terms of the Division of Revenue Act Frameworks

• Reporting by public entities

• Adjusted budget 2010/11 • Reprioritisation in 2010/11 • Under (over) expenditure in 2010/11 • Breakdown of expenditure in 2010/11

Section 3: Highlights of 2010/11 Financial Statements

41

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Adjusted Budget 2010/11

Details R’000

Original budget for 2010/11 25,086,262

Funds rolled over from the previous year: 9,981

Project management office for 2010 FIFA World Cup Intercity Bus Services

8,336

Bus contract model 1,300

Performance management system 345

Significant and unforeseeable economic and financial events: 6,800

Salary and housing allowance increase

Self financing amounts: 186,040

eNaTIS transaction fees

Total of Adjusted Budget 25,289,083

Reprioritisation in 2010/11

43

Amounts shifted to / (from): (Amounts in R'000)

Programme Compensation Goods & Services

Capital Totals

Administration 2,271 17,043 19,314

Transport Policy and Economic Regulation

(3,674) (3,674)

Transport Regulation and Accident and Incident Investigation

4,035 2,867 6,902

Integrated Planning and Inter-sphere Co-ordination

(3,970) 31,141 (37,650) (10,479)

Transport Logistics and Corridor Development

(2,249) (2,249)

Public Transport (9,344) (9,344)

Public Entity Oversight and Border Operations and Control

(470) (470)

Totals (13,401) 51,051 (37,650) -

Reprioritisation in 2010/11(Continued)

44

Programme Shifts

R’000

Reasons for shifts

Administration 19,314 Cover over expenditure on compensation, traveling, information technology, communications and legal services

Transport Policy and Economic Regulation

(3,674) Savings on compensation of employees

Transport Regulation and Accident and Incident Investigation

6,902 Cover over expenditure on compensation of employees (Licensing Councils and Regulating Committee) and an unbudgeted call centre for the 2010 Soccer World Cup

Integrated Planning and Inter-sphere Co-ordination

(10,479) Savings shifted: After R37,65 million was shifted from capital to cover the cost of assisting host cities for the 2010 Soccer World Cup

Transport Logistics and Corridor Development

(2,249) Savings on compensation of employees

Public Transport (9,344) Savings on compensation of employees

Public Entity Oversight and Border Operations & Control

(470) Savings on compensation of employees

Under / (over) expenditure per Programme 2010/11

45

Programme Expenses Budget Variance % Variance1 245,383,834 253,034,000 7,650,166 3.02%2 38,868,846 42,251,000 3,382,154 8.00%3 398,076,240 398,077,000 760 0.00%4 6,966,573,436 6,978,571,000 11,997,564 0.17%5 20,980,818 25,867,000 4,886,182 18.89%6 17,259,340,893 17,441,869,000 182,528,107 1.05%7 145,821,165 149,414,000 3,592,835 2.40%

Grand Total 25,075,045,234 25,289,083,000 214,037,766 0.85%

Major under expenditure:P1: Savings on office accommodation RK7,649

P2: Delayed work on establishment of the Rail Economic Regulator R1,7m and Compensation of Employees

P4: Savings after R37,65m was shifted from capital

P5: Delay in Sustainable Rural Development and Transport Plan R3,5M and savings

P6: Under spent on scrapping of taxis R158,7m, under spent and savings

P7: Under spent R1,8m and savings R1,7m

Under / (over) expenditure per economic classification 2010/11

46

PercentageSTANDARD ITEM Expenses Budget Variance Variance

Current: 930,547,693 983,894,000 53,346,307 5.42%

Compensation of Employees 250,757,397 252,764,000 2,006,603 0.79%Goods and Services 678,292,042 731,130,000 52,837,958 7.23%Financial transactions 1,498,254 0 (1,498,254) N/a

Capital: - Machinery and Equipment 1,888,119 3,914,000 2,025,881 51.76%

Transfers: 24,142,609,422 24,301,275,000 158,665,578 0.65%

Departmental Agencies & Accounts 6,985,744,000 6,985,930,000 186,000 0.00%Foreign memberships 4,732,608 5,420,000 687,392 12.68%Households 339,957,397 497,740,000 157,782,603 31.70%Non Profit Institutions 15,981,000 16,017,000 36,000 0.22%Provincial & Local Governments 8,022,293,000 8,022,293,000 0 0.00%Public Corporations & Private Enterprises 8,765,206,000 8,765,206,000 0 0.00%

Universities & Technicons 8,695,417 8,669,000 (26,417) (0.30)%

Grand Total 25,075,045,234 25,289,083,000 214,037,766 0.85%

Under / (over) expenditure in 2010/11Details of major amounts under / (over) spent R’000

Compensation of employees under spent due to a moratorium on filling posts pending the restructuring of the department

2,006

Goods and Services:

P1: Savings on office accommodation 7,649

P1: Other savings 235

P2: Delayed work on establishment of the Rail Economic Regulator 1,702

P3: Savings after shifts from other programmes 217

P4: Savings after R37,65m was shifted from capital 11,482

P5: Delay in Sustainable Rural Development and Transport Plan 3,500

P5: Savings 799

P6: Delay in Automated Fare Collection project 5,000

P6: Delay in Implementation of Accessible Transport Corridors 1,500

P6: Delay in Implementation of Public Transport Operations Grant project 8,000

P6: Saved on Project Management Office for the 2010 Soccer World Cup 2,200

P6: Savings 7,09247

Under / (over) expenditure in 2010/11 (Continued)

Details of major amounts under / (over) spent R’000

Goods and Services (continued):

P7: Under spent on border operations and control 400

P7: Under spent on Modeling and Integration of the Electronic Performance management System projects

1,400

P7: Savings 1,662

Under spent on Transport Education and Training Authority 186

Over spent on transfer to University of Kwa-Zulu Natal (26)

Savings on foreign memberships 687

Savings on transfers to Non-Profit Institutions 36

Under spent on scrapping of taxis 158,734

Over spent on leave and donations (951)

Under spent on capital due to not filling all posts 2,026

Write off of overpayments, “no shows”, irregular expenditure and thefts (1,498)

Net under expenditure for 2010/11 214,038

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Under / (over) expenditure per Programme and classification

49

Programme (Amounts in R’000)

Classification 1 2 3 4 5 6 7 Total

Compensation - 1,313 - 6 682 1 4 2,006

Goods & Services 7,884 1,702 217 11,482 4,299 23,792 3,462 52,838

Transfers (492) (79) 651 (29) - 158,624 (9) 158,666

Capital 417 462 456 539 (95) 111 136 2,026

Fin transactions (158) (16) (1,324) - - - - (1,498)

Totals 7,651 3,382 - 11,998 4,886 182,528 3,593 214,038

Notes Ear-marked 7,650

Limit 8%

Shifted R37,7m

from capital

Limit 8%

Balance that could still have been shifted across Programmes

0 0 0 11,969 0 23,904 3,584

Expenditure breakdown for 201011

50

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

PRASA SANRAL

Public Transport Operations Public Transport Infrastructure & Systems

Goods and Services Gautrain

Taxi recapitalisation Compensation of Employees

Other agencies

35,0%

27,3%

15,4%14,8%

2,7%

1,8% 1,4% 1,0%

0,6%

Total 99,78%

Expenditure breakdown for 2010/11 (continued)

51

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Non Profit Institutions Overload Control Rural Universities

Foreign memberships Capital expenditure Financial transactions Households

0,06%

0,04%

0,04%

0,03%

0,02%

0,008% 0,006%0,004%

Total 0,22%

• Personnel Establishment • Vacancy Management • Employment Equity Figures • Organisational Development and Employee

Health and Welness • Capacity Development and Gender,

Disability, Youth and Children (GDYC) annual achievements for 2010/11

• Internal training achievements

Section 4: Human Resource Management & Development

52

Personnel Establishment

53

• Total Establishment: 677 posts

• 524 posts filled (77.40%)

• 153 posts vacant (22.60%)

•Vacancy rate is 22.60%: (excluding 98 contract

employees)

•Contract Employees are appointed additional to the

establishment: 98 contract employees

22.60%

Filled

Vacant

77.40% Vacancy Rate 31/03/2010= 21.64%31/03/2011=22.60%

Measures that were introduced to reduce the vacancy rate

54

Vacancy Rate 31/03/2010=21.64%31/03/2011= 22.60%

• Concurrent headhunting with normal recruitment process has been introduced and implemented;

• Retention Strategy was approved and implemented, (Counter offer targets women, people with disabilities, rewarding of above average performance, people development and capacity building, empowerment of managers on Labour relations matters);

• Appointment of second appointable candidates who are women or people with disabilities;

• All vacant Office Administrators posts (PA/Secretaries) have been advertised and the interviews are in process;

• Approval has been granted to access & advertise identified posts on Job Access to accelerate the appointment of persons with disability;

Measures that were introduced to reduce the vacancy rate (Continued)

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Vacancy Rate 31/03/2010=21.64%07/10/2011= 22.60%

• The pro forma submission for the filling of posts has been improved to include Branch EE status updates;

• SMS Members will be assessed in terms of meeting the EE targets under the People Management and Empowerment CMC which carries a weighting of 20% ;

• Contract employees have been temporarily placed against vacant posts as per EXCO directive.

Race Representation:524 Filled Posts

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Africans

Coloured

Indian

White

(A) Req 79.2% Act 67.50%

(W) Req: 9.2%Act: 5.76%

(I) Req: 2,6% Act: 2.66%

(C) Req: 9%Act: 1.48%

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Gender Representation on 100 SMS Posts Filled

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Directors

CDs

DDGs

DG

Directors=73Women=39.73%Male=60.27%

DG/DDGs:8Women=25%

Male=75%

CDs=19Women=42.11%Male=57.89%

Total SMS: 100 Women = 39 (9.41% Under represented)

Gender Representivity & Turnover at all levels (only on permanent filled posts excluding contract employees)

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Total filled posts Women Male Variance

(Women)

Transfers & Terminations(April 09–Mrch 10)

Level 16 1 0% 100% 0% 1 (100%)

Levels 15 6 33.33% 66.67% 16.67% 0

Levels 14 19 42.10% 57.89% 7.90% 0Levels 13 74 41.89% 58.11% 8.11% 6 (8.11%)

Level 12 111 44.14% 55.85% 5.86% 7 (6.31%)

Level 10 103 48.11% 51.89% 1.89% 7 (6.80%)

Levels 3-8 215 65.12% 34.88% -15.12% 39 (13.04%)

Total 529 54.63% 45.37% -4.63% 60 (9.79%)

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Appointments/Internal Promotions& Lateral transfers: 26

Service Terminations: 38

Staff mobility 1 April 2010 to 31 March 2011

Employment Equity Status31/03/2011

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National Requirements -

DOT Status

Filled: 524

Total DOT

Establishment : 677

Action Required: Total

Africans (79.20%) 67.50% (457) 79.20% (536) Internal promotions targeting women – (Add 79)

Coloured (9%) 1.48% (10) 9% (61) Add 51

Indians (2.60%) 2.66% (18) 2.60% (18) Target reached

Whites (9.20%) 5.76% (39) 9.20% (62) Add 23

Women (50%) 41.95% (284) 50% (339) Add 55

Disabled (2%) 1.48% (13) 2% (14) Add 1

Challenges and interventions

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CHALLENGES:

• Indians are over-represented whereas all other race groups are under-represented, i.e. Africans (11.70%), Coloureds (7.52%), Whites (3.44%) and people with disabilities (0.52%) should still be appointed to reach the targets set in terms of the National Demographics.

• More attention is now being given to under-represented groups when appointments are made.

• Women are under-represented by 8.05% based on national demographics, this group is also still under-represented at Senior Management level.

• DPSA’s target for women at SMS level is 50% and the department is at 41.95%.

• National target for People with disabilities is 2% and the Department is at 1,84%.

INTERVENTIONS:

• SMS members are held responsible for ensuring and achieving EE in their components,

• Advertisements are tailor made to attract people with disabilities. Furthermore, Job Access are requested to assist the Department to recruit people with disabilities.

ORGANISATIONAL DEVELOPMENT AND EMPLOYEE HEALTH AND WELNESS

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Job Evaluation (Table 4) Health Promotion & HIV and AIDS

Programme (Table 12)

Job Evaluation

Table 4.1 Job Evaluation, 1 April 2010 to 31 March 2011

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Salary Band Number of posts as on

31 March 2010

Number of jobs

evaluated

% Posts evaluated by salary bands

Posts upgraded Posts downgraded

Number %of posts evaluated

Number %of posts evaluated

Salary levels 1-2 0 0 0% 0 0% 0 0%

Salary levels 3-5 60 2 3.33% 0 0% 0 0%

Salary levels 6-8 209 5 2.39% 1 20% 0 0%

Salary levels 9-12 271 5 1.85% 1 20% 0 0%

Senior Management Service (Band A)

91 0 0% 0 0% 0 0%

Senior Management Service (Band B)

35 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 677 12 1.77% 2 16.67% 0 0%

Job Evaluation

Table 4.2 Profile of employees absorbed in an upgraded post, 1 April 2010 to 31 March 2011

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Total number of employees absorbed in an upgraded post

Beneficiaries African Asian Coloured White Total

Female 0 0 0 2 2

Male 0 0 0 0 0

Total 0 0 0 2 2

Employees with a disability

0 0 0 0 0

Job Evaluation

Table 4.3 Remuneration levels that exceeded the grade determined by job evaluation, 1 April 2010 to 31 March 2011 (in terms of PSR V, C.3)

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Total Number of Employees whose salaries exceeded the grade determined by the job evaluation in 2009/2010

0

Health Promotion & HIV and AIDS Programme

Table 12. HIV/AIDS & Health Promotion Programmes

Table 12.1 – Steps taken to reduce the risk of occupational exposure

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Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

None None

Health Promotion & HIV and AIDS ProgrammeTable 12.2. Details of Health Promotion and HIV/AIDS Programme

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Question Yes No Details, if yes

1. Has the department designated a members of the SMS to implement the provision contained in part VI E of Chapter 1 of the Public Service Regulatory, 2001? If so provide, her/his name and position.

X Mr Moses MaswanganyeDirector: Organisational Development and Employee Health and Wellness

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.

X There is a Sub-directorate (Employee Health and Wellness) which is designated for health and wellbeing of employees.There are two employees dedicated to this taskDeputy Director: Employee Health and Wellness; andAdmin Assistant: Employee Health and Wellness

3.Has the department introduced an Employees Assistance or Health Promotion Programme for your employees? If so, indicate the elements/Service of this programme.

X • Providing an effective framework for health promotion and preventative mechanism amongst employees;

• Provide a confidential and professional counseling service to all employees and members of their immediate families

• 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 and AIDS Programme, as part of prevention both male and female condoms are distributed and proper use is promoted.

• 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.• Bereavement support offered to employees and their families.

Health Promotion & HIV and AIDS ProgrammeTable 12.2. Details of Health Promotion and HIV/AIDS Programme (Continued)

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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 names of the members of the committee and the stakeholder(s) that they represent.

X Transport Sector HIV/AIDS Committee• Mr M Maswanganye - Department of Transport• Ms D Bohlolo - Department of Transport• Ms V Mofokeng - Department of Transport• Ms S Ngqase - IOM• Mr N Bopape - National Bargaining Road Freight Council• Ms T Mogashoa - TETA• Mr L Mojanaga - ILO• Ms M Van Rooyen - PRASA• Ms J Barret - SATAWU• Ms L Peter - RAF• Ms A Mokoena - UTATU• Mr A Gangia – SARCC • Ms O Nkosi - 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

The following policies are in the process of being reviewed and awaiting approval:HIV/AIDS PolicyEmployee Health and Wellness PolicySubstance and Alcohol Abuse Policy Bereavement and Hospitalization Policy and Sports and Recreation policy already being developed awaiting approval


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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.

X • HIV/AIDS Policy which describes the Department’s commitment to addressing the epidemic is reviewed in light of latest developments, to ensure compliance with relevant Laws.

• HIV/AIDS Programme is popularized and promoted to staff and they are being taught about their rights through the Peer Education Programme.

• Peer Educators are appointed from across the spectrum of employees, they receive ongoing training.

• Disclosure Management Training for Managers/ Supervisors has been planned to take place before the 2011/2012 financial year ends. This will promote non-discrimination, openness and trust for safe HIV disclosure.

• No cases of discrimination on the basis of being HIV positive have been reported.


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7.Does the department encourage its employees to undergo Voluntary Counseling and Testing? If so, list the results that you have achieved

X During the World TB Day 46 employees tested for both HIV and TB. Women’s Day 59; Executive Wellness Day 19 tested; in September 2010 during the Wellness Expo’ 143 employees undertook VCT; World Aids Day 35 in December 2010; HIV Counselling and Testing (HCT Transport Sector Campaign) in Harrismith Truck stop 625 undertook HCT

8.Has the department development measures/indicators to monitor & evaluate the impact of it’s health promotion programme? If so, list these measures/indicators

X • Conducting of regular health risk screenings and HCT and reporting on these.

• On-going counseling offered and referral to outside health providers 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 Programme and Employee

Health & Wellness has been conducted.

CAPACITY DEVELOPMENT & GDYC ANNUAL ACHIEVEMENTS 2010/11

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The department addressed issues of scarce and critical skills as follows:

– Transport FET Curriculum and Programme has been approved for introduction in FET Colleges for 2012.

– 16 students are pursuing their pursue transport-related careers in Prague under the Departmental scholarship.

– Interns including COD graduates: Fifty eight (58) interns i.e. (48) transversal and (10) transport related interns were placed within the department.

– The department has prioritised bursary funding for transport related qualifications for employees ( 97 bursaries were awarded for the year)

– Seven (7) Outreach programmes have been conducted at rural areas to address transport related scarce and critical careers (

CAPACITY DEVELOPMENT & GDYC ANNUAL ACHIEVEMENTS 2010/11 (Continued)

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• A Human Resource Development Strategy Implementation plan for 2010-2011 was developed that addresses capacity development initiatives for the department.

• 86.7% of staff trained on various training programmes.• 2010 World Cup Skills Development project was successfully

conducted with the assistance of R1,8 m from UNDP.• Registered and funded 450 COD students during 2010/11. • Capacity building & GDYC policies were developed, reviewed and

sent for approval• Gender forum was established within the department to address

gender issues as well as to assist in mainstreaming gender in other transport related projects.

• Mainstreaming of GDYC programmes was conducted

86.70%

11%

17.60%

No. trained

Internships

Bursaries

Internal training achievements

73

Thank you

74

Documents

Select Committee on Public Services Department of Transport Annual Report 2010/11 Director-General Mr George Mahlalela Date: 07 February 2012 1 PCMS_GENERAL_n397155_v1_Presentation_DoT_Annual_Report_2010_2011_Feb2012.ppt