PRESENTATION TO PORTFOLIO COMMITTEE OF DMR 2011 / 12 ANNUAL REPORT 17 OCTOBER 2012

PRESENTATION TO PORTFOLIO COMMITTEE OF DMR 2011 / 12

ANNUAL REPORT

17 OCTOBER 2012

BRRR 2011 Responses

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BRRR Recommendations & Responses

PPC Recommendations relating to Corporate Services:

• The Department of Mineral Resources should fast-track the filling of vacant posts, especially the vacant funded posts

• The Department of Mineral Resources should fast-track the implementation of the talent management strategy to reverse the tide of staff-turnover.

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Due to the introduction of Resolution 3 of 2009 the department struggled to retain or attract qualified Inspector of mines hence the increase in vacancies in the Mine Health and Safety Inspectorate. OSD for Legal is also a challenge in this regard.

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STATUS ON VACANCIESStatus

BRANCH

PostsTotal vacancies as at 1 October 2011

 Total vacancies as at 1 October 2012 Variance

Office of the Director- General

280

38

26  12

(Chief Directorate Ministerial

and Parliamentary Services,Office of the COOChief Directorate Audit Services,Directorate Minerals and Mining Development Board

Corporate Services  

Financial, Information and  Supply Chain Management 134 17    12 5

Mineral Regulation Branch 358 24   22 2

Mineral Policy and Promotion  Branch     126 8   10 -2

Mine Health and Safety Branch 308 55   64 -9

TOTAL     1206 142   134 8

DMR responses to BRRR corporate services recommendations:

TALENT WITHIN THE DMR IS MANAGED ON THREE LEVELS:

1.RECRUITMENT LEVEL  1.1 Acquisition is the second level (after planning) of Talent Management in any organization.

1.2 The Department has an approved Recruitment and Selection Policy which has just been reviewed.

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DMR responses to BRRR corporate services recommendations cont’d

1.3 Following the approval of the Recruitment and Selection Policy, a Recruitment Strategy is in the process of being developed which will address areas such as how to acquire staff in order to meet Employment Equity targets.

1.4 The strategy will include, amongst other things, the possibility of the department moving to the concept of targeted selection, however, this can take long to implement as it requires funding for training of managers and HR personnel.

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DMR responses to BRRR corporate services recommendations cont’d

• Working together with the Mine Health and Safety Inspectorate, Corporate Services will also look into the possibility of reviewing qualifications requirements of Inspectors of Mines for possible future effective recruitment in these occupations.

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DMR responses to BRRR corporate services recommendations cont’d

2. DEVELOPMENT LEVEL

2.1 A workplace skills plan (WSP) and the Human Resource Development Implementation Plan

have been developed. The DMR in partnership with MQA have implemented various strategies;

2.2 A skills pipeline has been established where internal and external bursary scheme is implemented to close the scarce skills gap

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DMR responses to BRRR corporate services recommendations cont’d

2.3 A scholarship programme has also been established in order to attract young talent.

2.4 The internship programme as well as the Learner inspector programme has been established and high flyers are identified from the pool of learners in the engineering field.

2.5 SMS members are also sent for competency assessments to develop managerial skills

2.6 Leadership programmes are compulsory for Occupations that require supervision.

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DMR responses to BRRR corporate services recommendations cont’d

3. RETENTION LEVEL

3.1 In 2008, the Department developed a Proposed Career and Salary Dispensation for Occupational Classes: Mineral Laws Administration and Environmental Officers, and this was approved in March 2009.

3.2 The dispensation was successfully implemented and was beginning to bear positive fruit until beginning of 2010 when it could no longer be implemented due to the implementation of PSCBC Resolution 3 of 2009.

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DMR responses to BRRR corporate services recommendations cont’d

3.3 With the recent introduction of PSCBC Resolution 1 of 2012, it is believed that the Department will be able to retain skills in Mineral Laws and Environmental occupations by using this dispensation. This can

also be customized to cover other occupations in the Department.

3.4 More career paths will be developed for other occupations in core skills of the Department

3.5 A mentorship programme to retain retirees’ talents and to transfer skills is to be implemented in 2013.

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BRRR Recommendations & Responses

PPC Recommendations relating to Mineral Regulation:

• Resources should be obtained to populate the approved enforcement and compliance structure.

DMR Response:• A presentation has been made to National Treasury for

additional Resources for the approved enforcement and compliance structure. The Branch is awaiting final allocation from National Treasury for the 2013/14 MTEF.

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BRRR Recommendations & Responses

PPC Recommendations relating to Mineral Regulation cont’d:

• The Department of Mineral Resources should ensure that inspections of projects that impact vulnerable groups are conducted.

DMR Response:

The Branch has separated the Social and Labour Plan inspections from Charter inspections to ensure that there is specific focus on vulnerable groups.

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BRRR Recommendations & Responses

PPC Recommendations relating to Mineral Regulation cont’d:

• The Department of Mineral Resources should develop the compliance levels monitoring tool.

DMR Response:

The Branch is in the process of sourcing a service provider to develop a mining Charter and MPRDA compliance monitoring tool

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BRRR Recommendations & Responses

Recommendations relating to Mineral Policy:

• The Department of Mineral Resources should fast-track the quantification of government liability with regard to the Rehabilitation of Derelict and Ownerless Mines.

DMR Response:

Preparation for full scale re-assessment is underway to ensure that the rehabilitation liability provides an accurate reflection of the Department’s obligation in respect of derelict and ownerless mine. To this extent, the original database of the derelict and ownerless mine sites will be subjected to an iterative desktop verification and field investigations to verify the quantum and extent of rehabilitation.

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BRRR Recommendations & Responses

Recommendations relating to CFO:

• The Department of Mineral Resources should address the issues raised by the Auditor General in his 2010/11 financial year report.

DMR Response• The department developed and implemented action plans to

address all issues raised by the AG in the 2010/2011 financial year. Refer to the next 2 slides

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BRRR Recommendations & Responses

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No AG finding Action Plan Statusas at 30/09/2012

1. Receivable for Departmental Revenue, Payables and Provision

Develop an accounting system that will assist with the calculations in respect of interest and receivables.

Implemented.Revenue system in place, and able to calculate interest

2. Invoices not paid within 30 days of receipt

Enhance expediting of orders and monitor progress on a monthly basis

Implemented.To date 96% of all invoices have been paid within 30 days.

3. Irregular expenditure incurred not reported in the disclosure notes

Implement corrective measures against transgressors

Implemented96.31% of reported IE relates to expenditure from the previous FY.

Dept to continue monitoring IE to reducing it to 0%

BRRR Recommendations & Responses

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No AG finding Action Plan Statusas at 30/09/2012

4. Contingent Liability – obligation for the rehabilitation of derelict and ownerless mines not provided for

Appoint Council for Geosciences to finalise the quantification of priority sites and estimated cost thereof

Implemented.Estimated cost provided by an actuary as disclosed in the AFS

5. Accruals – exceeded funds to be surrendered and would have constituted unauthorised expenditure had payment be made in time

Introduce further cost containment measures on Good and Services

Continued implementation ofCost containment measures

6. Reporting of irregular expenditure to NT

Report to be submitted to NT upon discovery of IE

Implemented.Reports are send to NT as and when applicable

BRRR Recommendations & Responses

Recommendations relating to CFO:

• The Department of Mineral Resources should strive for an unqualified audit opinion in the 2011/12 financial year.

DMR Response• The department obtained an unqualified audit report - refer to

the 2011/2012 annual report

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BRRR Recommendations & Responses

Recommendations relating to CFO:

• A downward adjustment for the Payment of Capital Assets should be considered in order to mitigate a possible over expenditure on Transfers and Subsidies.

DMR Response• The department has implemented spending plans to ensure

that capital expenditure is aligned to projections/budget.

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BRRR Recommendations & Responses

Recommendations relating to CFO:• An upward adjustment for the Mineral Regulation programme

should be considered in view of the over expenditure in the first quarter of the 2011/12 financial year.

DMR Response• The department has a plan in place to utilize savings from

other programmes to cover any possible over expenditure identified within programmes.

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Thank you

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