Annual Report 2004/05 Presentation to the Portfolio Committee on Foreign Affairs Dr A Sooklal Acting Director-General Cape Town 9 November 2005.

Annual Report 2004/05

Presentation to the

Portfolio Committee on Foreign Affairs

Dr A Sooklal

Acting Director-General

Cape Town

9 November 2005

Foreign Policy Principles

Human rights and democracy

Justice and international law in international relations

Peace and conflict resolution

Africa in world affairs

Economic development

Foreign Policy Guidelines Promotion of security and quality of life of all South Africans Working to safeguard South Africa’s territorial integrity and sovereignty Interact with partners as equals in Africa and pursue friendly relations with the world Honour UN obligations and responsibilities, and contribute to world peace Commitment to African Renaissance (AU / NEPAD) Economic development (Regional integration/development in SADC and SACU)

Eradication of poverty MDGs by 2015

Implementation of WTO Doha Development Agenda/FfD/WCAR/WSSD

Peace making and conflict prevention Active commitment to international peace and security through

UN/NAM/AU/SADC/Commonwealth/other multilateral fora

Multilateralism / rules-based international system Reform of UN and Bretton Woods Institutions WTO / rules-based international trading regime Combat racism, sexism, xenophobia and related intolerance Agenda of the South (South-South Cooperation/South-North partnerships) Sustainable people-centred development Alleviate plight of refugees Positive image of South Africa

Action on Key Strategic Priorities for 2004/05

Consolidation/Implementation of the African Agenda

South-South Cooperation

South-North Dialogue/Partnerships

Multilateral Diplomacy

Projecting Positive/Accurate Image of South Africa/Africa

Consolidation/Implementation of the African Agenda Establishment of AU Commission / Pan-African Parliament / PSC

Launch of the AU Peace and Security Council / SA elected to 3-year term Inauguration of second session of the Pan-African Parliament ECOSOCC’s statutes finalised / SA’s chapter launched Operationalisation of AU organs Preparations for SA APRM review

NEPAD As significant driver of NEPAD, work continued on implementation of NEPAD in priority sectors National structures identified to champion, coordinate, popularise and implement NEPAD Host to 3-year Review Multi-Stakeholder Dialogue

SADC SA in SADC Troika: restructuring largely completed / strengthening of governance/capacity to ensure

successful implementation of Regional Indicative Strategic Development Plan (RISDP) Peace, Stability and Security

AS Chair of SADC Organ on Politics, Defence and Security: work on peacekeeping efforts / implementation of regional African Standby Force / early warning system

Peace processes and post-conflict reconstruction: Burundi; Côte d’Ivoire; DRC; and SA as Chair of AU Committee on Post-Conflict Reconstruction in Sudan

Strong strategic partnerships established with Burundi, DRC, Tanzania and Rwanda

Full diplomatic recognition to Sahrawi Democratic Republic Strengthening of SA representation on the Continent -> New missions (Eritrea; Equatorial Guinea)

South-South Cooperation

Second IBSA Ministerial Trilateral Forum in Cape Town / launch of IBSA Business Council / work on IBSA website

AASROC II co-hosted with Indonesia in Durban / groundwork for Bandung Asia-Africa Summit / launch of New Africa-Asian Strategic Partnership (NAASP)

Strengthening of bilateral relations with key countries of the South

Ongoing free trade negotiations -> SACU/China, SACU/India, SACU/MERCOSUR

Consolidation of SA relations with CARICOM

African Diaspora solidarity initiative: first South Africa-African Union-Diaspora Conference (Senegal); hosting of African Diaspora Summit; South Africa/Caribbean Diaspora Conference (Jamaica)

Continued engagement with G77+China / IOR-ARC

Continued improvement of relations with MERCOSUR member countries in Latin America

Strengthening of SA representation -> 3 new missions (Eritrea, Equatorial Guinea, Philippines)

South-North Dialogue/Partnerships

Continued relations with main South-North dialogue partners: G8; EU; USA; Japan; WEF; Commonwealth; OECD

Participated in G8 Sea Island Summit; WEF/Davos and WEF Africa Summit/Maputo; London meetings of Commonwealth Executive Committee and Board of Governors

Multi-departmental engagement with OECD for more structured relationship

Europe/EU

TDCA ratified and operationalised / EU/SACU free trade negotiations Hosted 4th SA/Russia ITEC Central/Eastern Europe: expanded relations in new markets/increased dialogue

North America

Continued support to NEPAD; regional peace, security and stability initiatives; economic development and cooperation (US/SACU free trade negotiations; extension of AGOA to 2015)

Multilateral Diplomacy - Peace and Security Palestine-Israel conflict

Continued support and encouragement of peace initiatives Continued engagement as member of NAM Committee on Palestine Hosting of NAM Ministerial meeting on Palestine Hosting of UN Africa meeting in Support of Inalienable Rights of the Palestinian People High-level SA participation in ICJ proceedings on Separation Wall Assistance to Palestinian national election process Continued engagement of both Palestinians and Israelis at high government level

Iraq Agreement on Iraqi Ambassador to SA

UN/Security Council reform In-depth analyses of reports on UN reform Common African Position on proposed reform (Ezulwini Consensus)

Non-Aligned Movement Hosted XIV NAM Ministerial Conference Preparations for Havana Summit (September 2006)

Combating international terrorism and implementation of UNSC resolutions Ratification of nine UN conventions on terrorism

Disarmament and non-proliferation

Continued preparations for NPT Review Conference Continued engagement with IAEA on Iran

Kimberley Process

Multilateral Diplomacy - Socio-economic Development/Cooperation Millennium Development Goals (MDGs)

Ongoing work to finalise SA country report to the UN, which will highlight extent to which MDGs have been achieved in SA

WTO

Multilateral trade talks - Doha round

Bretton Woods Institutions

Continued dialogue on progress on MDGs / effects of globalization / reform of institutions South Africa as Chair of the World Bank Development Committee

WSSD

Follow-up work CSD 12/13

Beijing Declaration / Platform for Action

Progress reviewed at UN Conference on the Status of Women

Human Rights Involvement in the elaboration of human rights instruments:

Convention of the Rights and Dignity of Persons with Disabilities Convention on Involuntary Disappearances Optional Protocol to the International Covenant on Economic, Social and Cultural Rights

Work undertaken on process to update and strengthen the International Convention on the Elimination of All Forms of Discrimination

Human rights emphasis finds its expression through ongoing involvement in: the promotion of democracy, good governance and the rule of law the development of the agenda of the South membership in democracy forums close interaction with domestic stakeholders ongoing involvement with the WCAR Durban Declaration and Programme of Action / Beijing

Declaration and Programme of Action

Humanitarian Support Disaster management support was provided to:

Darfur Madagascar Mali Caribbean: in the aftermath of Hurricane Ivan Indonesia, Sri Lanka, the Maldives, Seychelles and Somalia: in the wake of the December

tsunami

Hosted the African Regional Consultation Conference on Disaster Reduction and coordinated SA participation in the World Conference on Disaster Reduction in Kobe/Japan

Humanitarian assistance provided in terms of financial support to UN agencies involved with vulnerable groups in Africa as well as in respect of food security

Projecting Positive/Accurate Image of South Africa/Africa

Protocol Ceremonial (Diplomatic Guesthouse; Presidential Guesthouse; Ceremonial)

Assistance through JIA State Protocol lounge (major renovations completed)

Diplomatic appointments and offices of several international entities established in SA

Support to increased number of incoming and outgoing international visits

Protocol support to second and third tiers of government

Services to the diplomatic corps in South Africa

Media research and support

Management of the dfa’s official website and contribution to government’s Batho Pele Gateway Project

Hosting of successful London Conference that launched global 10 Years of Freedom celebrations 2010 Fifa Soccer World Cup bid

Support to SA participation at Athens Olympic Games

Support to SA participation at 2005 World Expo AICHI, Japan

Continued work to expand SA tourism opportunities

Support to SA’s bid to host the Square Kilometre Array

Consular and Agency Services

Provision of world-class consular service to SA citizens abroad

Assistance rendered to SA citizens following Hurricane Ivan in the Caribbean and the tsunami in South-East Asia

First phase completed of customised Consular Software Management System

Capacity building in the dfa

Continued work on the repositioning / strengthening of the Foreign Service Institute

Recruitment of 234 new staff members / bias towards women

DFA / Missions Hosting of full Heads of Mission Conference, Somerset West

Transformation of the Foreign Service Institute

• Transformation and repositioning of the FSI enjoyed high priority during 2004/2005

• The appointed Task Team made various recommendations based on international best practice

• Recommendations included reviewing the organisational placement and structure of the FSI, its programmes, curricula, entry requirements and assessments.

Recommendations

• Finances• An additional budget of R7m was made available to carry out the

transformation recommendations

• Placement and Structure• The Task Team recommended that the Institute should initially continue to

resort under the mandate of the Department.

• This mandate is subject to periodic review.

• The FSI structure was revisited and the Institute was upgraded from a Chief Directorate to a Branch.

• A DDG was appointed to head the FSI.

• Additional posts were created and critical vacancies filled

• Two directorates were added to the structure viz. Research Unit and Quality Assurance Unit.

Recommendations cntd.

• Entry requirements• Pre-course assessments have been implemented.

• An understanding of SA’s foreign policy is required to enter into foreign service training.

• A minimum of a Bachelor’s degree is a pre-requisite for diplomatic and mission administration training.

Recommendations cntd.

• Curriculum• A Curriculum Committee was established to look into the training

programmes.

• The diplomatic training programme was revised.

• More emphasis on economic diplomacy was recommended and implemented.

• The new programme also includes mission visits as a practical component of training.

• The Task Team recommended that diplomatic training be preceded by a Foundation Course to be offered to all new employees of the Department.

• The Foundation Course was then designed and implemented.

Recommendations cntd.

• Curriculum cntd.• The Management Consultancy Unit reviewed the Mission Administration

Training.

• Recommendations enhancing the efficiency and effectiveness of financial management training were implemented.

• Another recommendation was to streamline all training in the Department.

• Protocol training was relocated from the Branch Protocol to the FSI.

• In view of SA’s role in the AU it was recommended that SA diplomats should be proficient in French language.

• An accelerated French language training programme was initiated and implemented.

HR Management

Establishment as at 31 March 2005

Head Office and Missions

Total number of posts 2849Filled 1875Funded vacancies 486Unfunded vacancies 488

Steps taken to fill funded vacancies:Advertised: 463

Filled: 355 Breakdown:

239 external appointments116 internal appointments(Promotions)

HR Management

Establishment as at 31 March 2005

Missions

Total number of posts: 895Filled 499Vacant and funded 83Vacant and unfunded 313 Therefore there are 582 funded

posts As new Missions are opened

unfunded vacancies will be used

Steps taken to fill funded vacancies: 2 Placement drives annually Current HoM intake Current placement drive

Heads of Mission: Intake since 1 April 2004 = 39

Capacity of DFA

Recruitment Cycles takes place twice a year - February and July

Recruitment cycles for 2005 completed 359 posts advertised and 119 filled

Next recruitment drive will be in February/ March

By then the Department would have settled in employees coming in December, January and February (231)

Recruitment Methods to ensure Quality Candidates

Adverts specific with regard to requirements (qualifications and Competencies)

Panels constituted to ensure equity and functional balance

A specific method of interviewing is utilised (Targeted Selection) Ensures candidates demonstrate proven knowledge and experience as opposed to theorising

We have established a competency assessment center which focus on assessing specific competencies that cannot be fully determined in an interview e.g.

Writing skills Analytical thinking Leading and Managing others Problem solving Managing work

Candidates are recommended based on the average of the interview and competency assessment score.

Since using this approach we have employed talented people and feedback from managers has been positive.

HR Management

Representivity: Employment Equity Table

Male FemaleOccupational BandA C I W A C I W

Total

Top management 7 0 3 0 2 1 0 1 14Senior management 84 6 14 35 38 3 1 14 195

Middle Management 208 27 24 190 168 15 20 177 829

Below Assistant Director 273 15 10 29 326 25 23 136 837

Total 572 48 51 254 534 44 44 328 1875

Disability 6 2 0 10 2 0 1 3 24

Gender BreakdownRepresentivity: Employment Equity Table- Mission and Heads of Mission

Male FemaleOccupational BandA C I W A C I W

Total

Top management 1 0 0 0 0 0 0 0 1Senior management 52 2 7 9 17 2 1 3 145

Middle Management 79 16 9 100 44 1 4 36 289

Below Assistant Director 37 2 6 13 51 12 11 46 178

Total 169 20 22 122 112 15 16 85 561

Heads of Mission 50 3 6 10 20 2 0 3 94

HR Management

Representivity: Issues of Concern

Issue How it is being addressed Few women on

Management levelCurrent recruitment drive placesemphasis on women, in particularblack women. (209 women out of355 appointments)

Under-representation ofblacks on the DeputyDirector level

Current recruitment drive hasaddressed the problem to someextent

Under-representation ofpeople with disabilities

Strategies in place to target andattract people with disabilities. TheDepartment to conduct a review onwhy strategies implemented and inpractice are not yielding desiredoutcomes.

Performance Management and Development SystemOutcomes of the 2003/4 Appraisals

Performance Category Number of Employees

Unsatisfactory 9

(Notch increase)Satisfactory

293

Commendable5% bonus

503

Outstanding11% bonus

228

1033 Employees appraised

HR Management

Other HR Interventions

New Interventions

Developed Robust Multipurpose Job Profiles

Launched a Voluntary Counselling and Testing Program

Generic Training Framework for new employees Aligned Recruitment, Selection and Placement process

Enhanced Interventions

Implementation of the Performance Management and Development System

Affirmative-action measures in various HR processes

e.g., Recruitment and Selection, Placement and Training and Development Implementation of the Workplace Skills Plan

Streamlined recruitment and selection process

A well established Employee Wellbeing Centre in place

Implemented the Foreign Service Dispensation

HR Management

Programme for 2005/06

Conducting skills audit

Developing and Implementing a Talent Management strategy

Developing a DFA competency framework

Entrenching the PMDS focusing on correct and meaningful application

Conducting a Culture and Climate survey

Developing and implementing a Leadership Development Programme for SMS

Facilitating Gender Mainstreaming

Implementing a Coaching and Mentoring Programme as part of Learnerships

Implementing two more Leanerships

Initiate an investigation on the appropriate Foreign Service Dispensation

Developing and implementing a new Employment Equity plan

DFA - Annual Financial Statements

Revenue

Annual Allocation R 2,546,649 billion

Other Revenue R37 million

Actual Expenditure 2004/05 Financial Year

Budget Actual VarianceProgrammesR’000 R’000 R’000

Programme 1: AdministrationProgramme 2: Foreign RelationsProgramme 3: Public Dip & ProtocolProgramme 4: InternationalTransfers.

492,4371,598,119

157,108

298,985

425,6151,510,540

140,846

275,924

66,82287,57916,262

23,061

Total (92,39% expended) 2,546,649 2,352,925 193,724

Actual Expenditure per Economic Classification

Budget Actual VarianceEconomic classificationR’000 R’000 R’000

Current payments

Transfers and Subsidies

Payment on Capital Assets.

2,073,187

333,766

139,696

1,901,123

311,688

140,114

172,064

22,078

-418

Total (92,39% expended) 2,546,649 2,352,925 193,724

Savings Realised -2004/05

Vacant funded posts

Capital works projects

Strengthening of the Rand against the major currencies

Opening of new missions towards the end of the financial year

Savings in the Presidential Inauguration

Revision of scale of assessment for the UN contribution

Rollover of funds to the value of R73,045 million were approved for the following

projects: Capital projects: Foreign Mission R 31,845 m

SA Government Tsunami Fund R 13,000 m

Transaction Advisor (Head Office Building) R 6,000m

Progressive Governance R 14,200m

Mali Project R 8,00m

(Actual Savings: 193 724 - 73 045 = 120 679)

Options Analysis and Feasibility Study : Procurement options abroad

• The Department is currently represented in 108 countries abroad• Representation is increasing annually• The Department owns:

– 29 Official Residences

– 22 Chanceries

– 51 Staff residences

• The Department rents 440 other properties • Annual rent cost is approximately R 260 million per annum.

Options Analysis and Feasibility Study : Procurement options abroad

• Acquisitions are currently done through the traditional budgeting process which does not adequately address the Department’s needs.

• Department wanted to investigate more cost effective/efficient ways to acquire accommodation that in the long term would reduce its expenditure on rent.

• Consultants were appointed to conduct a study for the Department. • The objectives of the study are:

– Regional options analysis addressing the condition of the property market, procurement and funding options in a particular country.

Options Analysis and Feasibility Study : Procurement options abroad

– Comprehensive feasibility study on selected cities addressing the procurement and funding options. (Tokyo, Beijing, New Delhi, Riyadh, Nairobi, Luanda, New York, Brussels, Geneva, Moscow and Tel Aviv)

• Desired outcome of the study:

Comprehensive Options Analysis report which will guide the Department’s property procurement strategy and will include:

– Regional options analysis that will be broad based and cover the following:• State of the property market in the identified regions and cities

• Legal environment influencing property acquisition and ownership with specific reference to diplomatic missions

• Restrictions on foreign ownership of properties

• Financial, capita and banking environment

• Procurement options available (I.e. short term rent, lease, purchase, leasehold, PPP, etc.)

• Restrictions placed on ownership.

Options Analysis and Feasibility Study : Procurement options abroad

– Feasibility study for specific cities that will address detail such as:• Property location analysis

• Property market analysis

• Property law and taxation analysis

• Property procurement options (I.e. short-term rent, long-term lease, cash purchase, bonded purchase, leasehold, public private partnership (PPP) and other innovative methods of procurement)

• Property management analysis

• Property investment analysis including life cycle costing and affordability analysis

• Property investment risk analysis.

Options Analysis and Feasibility Study : Procurement options abroad

• Way forward – Visits to cities and regions finalised– Reports are being finalised– Final report due by end January 2006 – Funding request submitted to National Treasury during

current budget cycle.

Auditor-General’s Report - Emphasis of Matter

Inadequate debt management

Inadequate asset management

Receivables- African Renaisance Fund and International Co-operation Fund

Clearing of Control accounts/suspense account

Follow up of the information systems audit of the general controls

Late submission of the financial statements

Programme of Action

Debt Management unit strengthened within the Finance Directorate. Debt Management Policy

has been developed and approved by Management. Debt Management Committee has been

established to oversee the management of the debt portfolio of the Department.

2004/05 Department implemented HardCat Asset Management System at Head Office. Teams

are currently at missions to implement the same system. Asset Register for the Department will

be finalised by March 2006

The advisory Committee of the African Renaissance Fund has put processes to fast track the

approvals of projects. The Audit of the Mali Trust Fund has been finalised waiting for the Auditor

General’s Report.

Project Plan developed and approved( Accounts to be finalised by end February 2006). The

Department will also Implement Phase 2 of the financial system in missions

Programme of Action (cont…)

The following Information Communication Technology Projects have been identified for

implementation, which will address the issues raised by the Office of the Auditor-

General: -

Converged Network(VoIP)

Windows 2003 server

BI/Data warehousing

Workflow (DIAP and CAS)

African Renaissance and International Cooperation FundAnnual Financial Statements as at 31 March 2005 Income and Expenditure

Income R 69,733 million

Expenditure R 67,083 million

Auditor-General’s Report

Payables - Department of Foreign Affairs

Africa Cup of Nations soccer tournament

Long-term loans

Programme of Action

The advisory Committee of the African Renaissance Fund has put processes to fast

track the approvals of projects. The Audit of the Mali Trust Fund has been finalised

waiting for the Auditor General’s Report.

The Department has identified and categorised the long term loans in terms of their

recoverability. A proposal for write-off of long term loans, will be submitted to the

Ministers of Foreign Affairs and Finance for approval.

THE END

THANK YOU