PRESENTATION TO THE SELECT COMMITTEE ON COMMUNICATIONS AND PUBLIC ENTERPRISES DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES 2013/2014 ANNUAL REPORT 05 November 2014
Jan 12, 2016
PRESENTATION TO THE SELECT COMMITTEE ON COMMUNICATIONS AND PUBLIC ENTERPRISES
DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES
2013/2014 ANNUAL REPORT
05 November 2014
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
PERFORMANCE PER PROGRAMME
Summary of key achievements
Summary of significant under-achievements
PROJECTS CARRIED OUT ACROSS PROVINCES
FINANCIAL PERFORMANCE
Financial statements
Transfer payments
RESPONSE TO AUDITOR-GENERAL’S FINDINGS
PRESENTATION OUTLINEPRESENTATION OUTLINE
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
The Annual Report being presented is for the former Department of Communications (DoC) as it covers the period 01 April 2013 to 31 March 2104.
Significant achievements were noted in the following programmes amongst others: The Cabinet approval of the National Integrated ICT Policy Review Green Paper
which was followed by extensive public consultation. The implementation of the Policy and Legislative Programme which saw the
Cabinet approval of the following Amendment Bills: Postbank, South African Post Office SOC Ltd., Electronic Communications and ICASA.
The Cabinet approval of the National Broadband Policy referred to “SA Connect” which also contains the National Broadband Strategy and implementation approaches.
The migration of all SMS and non-SMS employees into the revised organisational structure and the process was finalized in February 2014.
The appointment of staff in critical positions such as the DDG: SOCs Oversight & Enterprise Development; DDG: Information Society Development & Research and DDG: ICT Infrastructure Support, thus ensuring a full complement of DDG’s.
OVERVIEW OF KEY ACHIEVEMENTSOVERVIEW OF KEY ACHIEVEMENTS
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
ICT Policy ReviewEstablished the ICT Policy Review Panel of experts to review the Telecommunication, e-Commerce and Broadcasting policies.Published the ICT Policy Framing Paper for public comments and also developed and tabled the ICT Policy Review Report.National Integrated ICT Policy Green Paper was developed and approved by Cabinet in December 2013 and gazetted for public consultation in January 2014.National Consultative Conference on the National Integrated ICT Policy Green Paper was held on the 3rd March 2014 and Public Hearings on the National Integrated ICT Policy Green Paper commenced in March 2014 in Provinces.
Policy and Legislative ProgrammePostbank Amendment BillPostbank Amendment Bill was introduced to Parliament after which public hearings and deliberations were held in September 2013.Postbank Amendment Bill was thereafter passed and signed by the President
ICT Policy, Research and Capacity Development
Summary of Key Achievements (1)
ICT Policy, Research and Capacity Development
Summary of Key Achievements (1)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Policy and Legislative Programme continued…South African Post Office (SAPO) SOC Ltd Amendment BillSAPO SOC Ltd Amendment Bill was approved by Cabinet in June 2013.Bill was introduced to Parliament and approved in the third quarter.Bill was signed into law and became operational in January 2014.
Electronic Communications (EC) Amendment BillEC Amendment Bill was tabled in Parliament in the first quarter.Regulatory Impact Assessment report was also aligned with the latest ECA Bill and submitted to Parliament.Department participated in the Parliamentary processes towards the enactment of the EC Amendment Bill.
ICASA Amendment BillICASA Amendment Bill was introduced to Parliament during the first quarter.RIA report was aligned with the latest ICASA Bill and was submitted to Parliament.
ICT Policy, Research and Capacity Development
Summary of Key Achievements (2)
ICT Policy, Research and Capacity Development
Summary of Key Achievements (2)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
e-SkillsTargeted e-Skills courseware were developed in line with the National e-Skills Curriculum Framework in collaboration with key stakeholders.With regards to the roll-out of the e-Skills Virtual Network, Minister launched the virtual network on 20 May 2013.In February 2014, the integrated Ikamva National e-Skills Institute was officially launched by the Minister.
e-Strategy FrameworkThe e-Strategy framework was developed in line with Electronic Communications and Transactions (ECT) Act and the National Development Plan (NDP).
PostbankThe application for a Banking License was submitted to the Registrar of Banks.Names of Board members that were recommended by SAPO were approved by the Minister of Communications and submitted to the Reserve Bank for the fit and proper assessment.
ICT Policy, Research and Capacity Development
Summary of Key Achievements (3)
ICT Policy, Research and Capacity Development
Summary of Key Achievements (3)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Community Broadcasting Support Strategy
The draft Community Broadcasting Support strategy was developed and internally consulted however it could not be finalised as the strategy needed to include financial implications.
However, in the 2014/15 financial year, the Department has finalised the draft Community Broadcasting Support strategy which is ready for public consultation.
ICT Policy, Research and Capacity Development
Significant Under-achievements
ICT Policy, Research and Capacity Development
Significant Under-achievements
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
BroadbandThe Department undertook the process of revising the National Broadband Policy.The revised National Broadband Policy, referred to as “SA Connect”, was approved by Cabinet in December 2013. SA Connect also contains the National Broadband Strategy and implementation approaches through a four-pronged approach:
o Digital Readiness o Digital Developmento Digital Futureo Digital Opportunity
ICT Infrastructure Support
Summary of Key Achievements (1)
ICT Infrastructure Support
Summary of Key Achievements (1)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Radio Frequency The National Radio Frequency Plan was approved by Minister and gazetted by
the Authority. National Radio-Frequency incorporates radio spectrum requirements of security
services. The spectrum requirements for exclusive allocations for Security Services was
compiled and approved by Minister for incorporation by ICASA in the National Radio-Frequency Plan.
Broadcasting Digital Migration (BDM) The Department reviewed the BDM Policy, largely with a view to make the use
of Set Top Box (STB) Control non-mandatory. With regards to National Digital Terrestrial Television (DTT) coverage, through
Sentech, 100% coverage was achieved via Direct To Home (DTH)-Satellite tranmission.
The Satellite transmission platform was launched in September 2013.
ICT Infrastructure Support
Summary of Key Achievements (2)
ICT Infrastructure Support
Summary of Key Achievements (2)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Cybersecurity Although the National Cyber Security Advisory Council (NCAC) was appointed and
the Virtual Cyber Security Hub was established, the Department was unable to establish the Cyber Security Hub as planned.
This was largely due to the reallocation of funds to other priority projects. However, in terms of progress thus far, as an interim measure, the Department has
commenced the process of operationalising the Virtual Cyber Security Hub.
Broadcasting Digital Migration The Department did not achieve all planned elements of the BDM Programme such
as the allocating 1.5-million subsidized STBs to subsidy scheme recipients, providing of STB installer training and the establishment of a National Call Centre.
Underperformance was due to delays in the broader BDM programme which was largely due to the contention on the STB control system amongst broadcasters as well certain manufacturers.
However in terms of progress to date, the Department has finalised the revised BDM Policy which is awaiting final approval.
ICT Infrastructure Support
Significant Under-achievements
ICT Infrastructure Support
Significant Under-achievements
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Africa ICT Infrastructure Programmes With regards to coordinating the implementation of the Southern African
Development Community (SADC) ICT Infrastructure Master Plan, SA participated in the Committee that developed a short-term action plan for 18 projects which were adopted by SADC Ministers. The SADC regional and national integrated broadband infrastructure project was the flagship project.
DoC participated in the SADC convened workshop on the Regional Internet Exchange Point (RIXP). South Africa has made substantive progress in establishing its own Internet Exchange Points which are in Cape Town, Durban, Grahamstown, Helderberg, Johannesburg and Centurion.
With regards to the dot.Africa domain name, official approval was received from the Internet Corporation for Assigned Names and Numbers (ICANN) for .ZACR to operationalise dot.Africa. The signed Agreement between .ZACR and ICANN took place on 27 March 2014 in Singapore.
Advancing RSA ICT Position South Africa chaired the Universal Postal Union Council (UPU) of Administration
Committee on Strategy as well as the Pan African Postal Union (PAPU) committee on strategy.
ICT International Affairs
Summary of Key Achievements (1)
ICT International Affairs
Summary of Key Achievements (1)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Advancing RSA ICT Position (continued…) South Africa continued its role as Chair of the Africa group for International
Telecommunications Union (ITU) in both World Telecommunications Standardisation Assembly (WTSA) and World Conference on International Telecommunications (WCIT) Africa report back meetings.
South Africa also successfully hosted a meeting of the Global Standards Initiative for (Internet Protocol Television (IPTV) of Study Group 16 (South Africa through CSIR is vice-chair), to address IPTV and e-health. The meeting is part of a continuing project to look at global IPTV standards through IPv6.
South Africa is the first African country to host an IPTV test bed. This has provided an opportunity for CSIR to showcase its IPTV technology, and to participate in the development of global standards in this area.
South-South Relations With regards to BRICS ICT programmes, South Africa drafted a position paper on
the operationalisation of Cooperation on the BRICS Cybersecurity, which was adopted with comments in the Ministerial meeting in Russia, Moscow.
ICT International Affairs
Summary of Key Achievements (2)
ICT International Affairs
Summary of Key Achievements (2)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
South-South Relations (continued….) In terms of negotiating and developing two bilatera programmes with countries
of the South, a Memorandums of Understanding between South Africa and Brazil as well as South Africa and India were negotiated and agreed with the respective counterparts.
ICT Trade and Investment An ICT Trade and Investment Strategy together with the implementation plan
were consulted with Members of the Economic Cluster and approved for submission to Cabinet.
The DoC participated in the SA-SADC on-going trade negotiations, which focused on opening up markets in the audio visual sector.
With regards to facilitating the implementation of the SA-EU work programme, the Department hosted the SA-EU Dialogue on the Information Society and ICTs which provided for an exchange of ideas and experience in implementing key priorities for the development of the information society in the areas of Broadband, DTT, Spectrum Management, Research programmes, as well as access to Europian Union research funding. Agreement was reached on a number of possible outcomes for future cooperation.
ICT International Affairs
Summary of Key Achievements (3)
ICT International Affairs
Summary of Key Achievements (3)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Ratification of International Telecommunications Regulations Although planned for, the Department was unable to submit the International
Telecommunications Regulations to Cabinet for approval. Delays were due to the prolonged waiting period for the International
Telecommunications Regulations from the ITU so as to commence with the ratification process. Such challenges are not directly in the Department’s control however the Department has taken into consideration the implications of reliance on external stakeholders, such as the ITU, during its planning processes.
ICT International Affairs
Significant Under-achievements
ICT International Affairs
Significant Under-achievements
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
ICT SMME Programme
Training workshops on the Small Medium Micro Enterprises (SMME) e-Commerce platform were conducted in 4 provinces, Limpopo, North West, Gauteng and Eastern Cape. A total of 129 SMMEs were capacitated on the use of the e- Commerce Platform and their business profiles and offerings were uploaded on the platform. Sectors covered includes travel and tourism, accommodation, arts and craft.
With regards to the development of reports on Job creations, from April 2013 to March 2014, 865 jobs were created. 63.4% (549) of these individuals were youth. Only 1.7 % of the total employed consists of people living with disabilities. Of the total jobs, 37.7% (326) were females and 37.9% (328) were males. It is also critical to note that 21.3% (185) of these individuals were employed on a permanent basis, while 54.2% (469) were employed on a temporary basis.
Broadcasting, Communications Regulation and Support
Summary of Key Achievements (1)
Broadcasting, Communications Regulation and Support
Summary of Key Achievements (1)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
SOC Oversight The Medium Term Expenditure Framework (MTEF) requests of all SOCs were
facilitated and all SOCs participated in the Medium Term Expenditure Committee (MTEC) process.
In order to ensure alignment and integrated planning, all SOCs participated in the DoC strategic planning workshop while the DoC participated in all SOC planning workshops. Furthermore, joint DoC/SoC Strategic Work sessions were hosted.
SoCs quarterly reports were analysed to determine the actual performance against planned targets and through engagements with executive management of SoCs, Departmental feedback was provided.
Analyses of the 2012/13 Annual Reports were conducted within 30 days of receipts.
The submission of unaudited financial statements to the external auditors was facilitated for all entities.
Monitoring of adherence to good Governance practices was undertaken on a quarterly basis and all SOCs completed King 3 compliance scorecards.
Drawdown schedulesof all entities were finalised and the payments effected as well as expenditure monitored on a quarterly basis.
Broadcasting, Communications Regulation and Support
Summary of Key Achievements (2)
Broadcasting, Communications Regulation and Support
Summary of Key Achievements (2)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
SMME Programme
With regards to the implementation of ICT SMME Programme delays regarding the participation of SMME’s in the BDM value chain were related to the delays in the implementation of the broader BDM programme. Of most significance was the non-achievement of the roll-out of STBs due to the contention on the STB control system amongst broadcasters as well certain manufacturers. This had a direct negative impact on the participation of SMME’s in the BDM value chain.
However in terms of progress thus far, the Department has commenced with a baseline study on SMMEs in the Broadcasting, Postal and Electronic Manufacturing sub-sectors. To date, relevant data for approximately 100 SMMEs have been gathered and is currently being analysed.
Broadcasting, Communications Regulation and Support
Significant Under-achievements
Broadcasting, Communications Regulation and Support
Significant Under-achievements
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
BDM Public Awareness In an effort to bring about public awareness regarding BDM, a Media Plan for
the BDM awareness campaign was developed and the BDM awareness programme was implemented through numerous public events, media platforms, billboards, radio stations, exhibitions and literature distribution as well as key stakeholder engagements.
Organisational change and transformation With regards to implementation of the approved migration plan focusing of
placement of staff from the current to the new organisational structure, all SMS and non-SMS employees were migrated into the revised organisational structure and the process was finalized in February 2014.
Staff in critical positions were appointed such as the DDG: SOCs Oversight & Enterprise Development; DDG: Information Society Development & Research and DDG: ICT Infrastructure Support, thus ensuring a full complement of DDG’s.
Furthermore, the Chief Financial Officer (CFO); Chief Director: HRM, Chief Director: Internal Audit and Risk Management.
Administration
Summary of Key Achievements (1)
Administration
Summary of Key Achievements (1)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
BDM Public Awareness The optimal roll-out of the BDM public awareness programme was affected by the
delays in the broader BDM programme largely due to the STB control dispute which delayed the manufacturing and distribution of STBs. This had a knock on effect on the BDM awareness programme.
However in an attempt to resuscitate the BDM public awareness programme, taking into consideration the limited resources available, the Department has established a multi-stakeholder framework. This allows the Department to leverage on the available resources of other stakeholders.
Organisational change and transformation The Department did not implement the leadership development programme as planned
largely due to HR capacity constraints. Furthermore, the culture and climate survey could not be conducted as it was
dependant on the completion of the migration process. However, going forward, in addressing the organisational change and transformation
interventions, a more holistic approach has been taken through developing and implementing an internal control framework which will improve compliance and optimise the functioning of multiple functional areas across the Department.
Furthermore, preparations are underway to conduct the climate and culture survey.
Administration
Significant Under-achievements
Administration
Significant Under-achievements
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SCHOOLS CONNECTIVITYThe department completed connectivity to the following 1650 schools by connecting
them to the Wide Area Network.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (1)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (1)
No Province District/Circuit(s) Districts Schools
Dinaledi schools
1 North West Rekopantswe & Kagisano Molopo Area Offices
94 88
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2 Mpumalanga Witbank 1,2,3 and Middelburg 1,2,3 Circuits, Nkangala Region
148 19
3 Gauteng Tshwane South District 175 14 4 Western Cape Cape Winelands District 195 5 Free State Motheo District 136 8 6 KwaZulu-
Natal Hammersdale & Umhlathuze Circuits, Pinetown District
199 29
7 Limpopo Vhembe District 200 12 8 Northern
Cape Siyanda District 101 3
9 Eastern Cape Lady Frere and Queenstown Districts 189 22 Total 1525 125
e-SKILLSThe department undertook the following e-Skills related initiatives across identified Provinces.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (2)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (2)
PROGRAMMES INDICATORS Eastern Cape Gauteng KwaZulu-Natal
Limpopo Northern Cape
Western Cape
National
ICT for Rural Development
Creative New
Media Industries
e-Enablement of Effective Service Del.
Connected Health
Knowledge Society (e-literacy/ e-astuteness)
e-Inclusion and Social Innovation
Multi-stakeholder Collaboration 206 150 67 6 12 111 552 Provincial stakeholder members (n) 200 150 67 6 12 100 535 Partnerships formalised (n) 6 0 0 0 0 11 17Teaching and Learning 1605 276 1064 169 266 118 3498 Targeted courses developed and
implemented (n)2 5 7 1 1 4 20
Learners trained including mobile apps & eliteracy (n)
1600 268 1054 156 262 110 3450
Smart Community Knowledge Centres (n) 3 3 3 12 3 4 28Research and Innovation 8 70 21 1 3 43 146 Research projects initiated/completed -
masters, honours (n)0 25 3 0 3 8 39
PhD students (n) 0 10 2 1 0 0 13 Publications - journals/conference papers
(n)5 18 16 0 0 11 50
Mobile apps developed/initiated (n) 3 17 0 0 24 44Advocacy and Awareness 7 1401 3 3 1 106 1521 Campaigns/workshops (n) 6 0 3 3 1 0 13 Mobile Apps Development Campaign (n) 1 1 0 0 1 3 No of Mobile Apps Development learners 0 1400 0 0 0 105 1505Aggregation 1 0 0 0 0 1 2 1827 1897 1155 179 282 379 5719
e-SKILLSThe following are the key highlights across Provinces:
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (3)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY DoC (3)
Province KEY HIGHLIGHTSEastern Cape Focus Area: ICT for Rural
Development
• In terms of Multi-stakeholder collaboration, 200 provincial stakeholder members were consulted and 6 partnerships have been formalised.
• 1600 learners have been trained which includes mobile apps and e-literacy.GautengFocus Area: Creative New
Media Industries
• In terms of Multi-stakeholder collaboration, 150 provincial stakeholder members have been have been consulted.
• 268 learners have been trained which includes mobile apps and e-literacy.• Advocacy and awareness campaigns were targeted at 1400 Mobile apps
development learnersKwaZulu-Natal Focus Area: e-Enablement of Effective Service Delivery
• In terms of Multi-stakeholder collaboration, 67 provincial stakeholder members have been have been consulted.
• 1054 learners have been trained which includes mobile apps and e-literacy. Limpopo Focus Area: Connected Health
• 156 learners have been trained which includes mobile apps and e-literacy.• 12 Smart Community Knowledge Centres were established
Northern Cape Focus Area: Knowledge Society
(e-Literacy / e-Astuteness)
• 262 learners have been trained which includes mobile apps and e-literacy.• 3 Smart Community Knowledge Centres were established
Western Cape Focus Area: e-Inclusion and
Social Innovation
• 110 learners have been trained which includes mobile apps and e-literacy.• 24 Mobile apps were developed/initiated.• Advocacy and awareness campaigns were targeted at 105 Mobile apps
development learners
STATE INFORMATION TECHNOLOGY AGENCY (SITA)
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (1)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (1)
PROVINCE PROJECTS
Gauteng Completed Central Server Platform Renewal Projects for Department of Defence
Established Social Media on cloud for SITA Product Investment Portfolio
e-Disclosure Project implemented on pilot site for the declaration of the conflict of interest for SITA Product Investment Portfolio
Developed the Prototype Lab for innovation and research Projects for SITA Research Portfolio
Concluded development of deployment systems of the SA Navy in achieving their goal of operating and managing the weapons system and support by means of a single integrated Naval Logistic Information System for South African Navy.
STATE INFORMATION TECHNOLOGY AGENCY (SITA) continued…
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (2)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (2)
PROVINCE PROJECTS
KwaZulu-Natal
Concluded the installation and configuration of Commvault software and seeding of data for 14 sites for the Dept’s. of Agriculture, Environmental Affairs and Rural Development
Developed of User Registration System for Department of Public Works
Developed IT Governance services for the Department of Sport and Recreation
Developed ICT Governance Services for KZN Department of Transport
Concluded the Fleet Management System Testing project for the Dept. of Transport
Developed a Disaster Recovery Plan for KZN Office of the Premier
Completed Business Process re-engineering for the KZN Gaming and Betting Board
Developed an IT Governance Framework for Umzimkhulu Municipality
Developed an IT Strategy Plan for uMzimkhulu Municipality
Developed a Business Continuity Plan & Disaster Recovery Plan for the uMzimkhulu Municipality
Developed an ICT Strategic Plan for Dr. Kenneth Kaunda District Municipality
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
SENTECH
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (3)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (3)
PROVINCE PROJECTS
Eastern Cape
Established Internet Connectivity to:•23 computers at Dumalisile Junior Secondary School•Thubalethu Senior Secondary School•Sakela Junior Secondary School
Established Low Power Transmission at Cala for SABC 1,2,3 & Umhlobo Wenene FM.
Limpopo Installed Computer Lab with Internet Connectivity to 23 computers at Ramphelane Secondary School.
Established Low Power Transmission at Ga-Modjadji for SABC & Thobela FM.
Established Low Power Transmission at Makgaung for SABC & Thobela FM.
Established Low Power Transmission at Ga-Mafefe for SABC, Thobela FM & Munghana Lonene FM.
Established Low Power Transmission at Ga-Phooko for SABC & Thobela FM .
Established Low Power Transmission at Giyani for SABC 1,2,3 & Munghana Lonene.
Mpumalanga Installed Computer lab with Internet Connectivity, to 23 Computers at Zenzele Secondary School.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
SENTECH continued…
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (4)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (4)
PROVINCE PROJECTS
KwaZulu- Natal
Concluded Digital Terrestrial Television infrastructure installation at Ulundi
Northern Cape
Concluded Digital Terrestrial Television infrastructure installation at Colesberg
Concluded Digital Terrestrial Television nfrastructure installation at Pofadder
Concluded Digital Terrestrial Television infrastructure installation at Kuruman Hills
Western Cape
Concluded Digital Terrestrial Television infrastructure installation at Oudtshoorn
Concluded Digital Terrestrial Television infrastructure installation at Riversdale
Concluded Digital Terrestrial Television infrastructure installation at Uniondale
Concluded Digital Terrestrial Television infrastructure installation at Uniondale Town
Concluded Digital Terrestrial Television infrastructure installation at Willowmore
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Broadband Infraco
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PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (5)
PROJECTS CARRIED OUT ACROSS
PROVINCES BY SOC’s (5)
PROVINCE PROJECTS
KwaZulu-Natal
With regards to the establishment of the Durban Teraco Points of Presence (PoP) project, the secondary fibre installation was completed.
Gauteng Concluded the establishment of 2 new Open Access PoP sites in Pretoria East (located at the CSIR Innovation Hub) and Pretoria West (located at Gijima’s Rust Building)
Concluded establishment of the Parklands – Bryanston Open Access PoP Site which includes the installation of transmission equipment; installation of Optic Fibre Tie Cable; and Installation of Auxiliary Equipment.
North West Concluded the establishment of the Open Access PoP Site at Ramatlabama Border and an optic fibre link of 30km from the Mafikeng PoP to provide connectivity to Botswana and the SADC region.
Concluded the Mafikeng (Link) which entailed upgrading the existing system from hiT7070 to hiT7080 due to end of life for the system and upgrading of capacity to address the current and future capacity requirements.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
FINANCIAL PERFORMANCE
FOR THE 2013/14 FINANCIAL YEAR
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
STATEMENT OF FINANCIAL PERFORMANCE (1)STATEMENT OF FINANCIAL PERFORMANCE (1)
2013/14 2012/13
REVENUE R’000 R’000
Annual appropriation 2 372 117 1 655 024
Departmental revenue 1 711 942 2 052 037
Direct Exchequer receipts - -
Aid assistance - -
TOTAL REVENUE 4 084 059 3 707 061
Current expenditure
Compensation of employees 169 682 157 512
Goods and Services – operational exp. 589 042 277 917
Interest and rent on land 6 23
Financial transactions in assets & liabilities 555 343
Total current expenditure 759 285 435 795
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
2012/13 2011/12
R’000 R’000
Transfers and subsidies * 1 600 775 1 209 324
Expenditure for capital assets
Tangible capital assets 2 654 5 723
Software & other intangible assets 72 369
Total expenditure for capital assets 2 726 6 092
TOTAL EXPENDITURE 2 362 786 1 651 211
STATEMENT OF FINANCIAL PERFORMANCE (2)STATEMENT OF FINANCIAL PERFORMANCE (2)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
2013/14 2012/13
R’000 R’000
Voted funds surrendered 14 072 3 813
Departmental revenue 1 711 942 2 052 037
Direct Exchequer receipts - -
Transferred to National Treasury
1 726 014 2 055 850
STATEMENT OF FINANCIAL PERFORMANCE (3)STATEMENT OF FINANCIAL PERFORMANCE (3)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
APPROPRIATION STATEMENT APPROPRIATION STATEMENT
2013/14 2012/13
Programme
Final Appro-priation
Actual Expen-diture Variance
Expendi-ture as % of final
appro-priation
Final Appro-priation
Actual Expen-diture
1. Administration 212 083 210 444 1 639 99.2% 196 011 195 959
2. ICT International Affairs and Trade
36 664 41 405 (4 741) 112.9% 47 866 44 190
3. ICT Policy Development
88 965 88 793 172 99.8% 95 270 95 185
4. CT Enterprise Development
1 075 010 1 062 749 12 261 98.9% 1 209 035 1 209 035
5. ICT Infrastructure Development
959 395 959 395 - 100% 70 765 70 765
TOTALTOTAL 2 372 1172 372 117 2 362 7862 362 786 9 3319 331 99.6% 1 655 0241 655 024 1 651 2111 651 211
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
SUMMARY OF ECONOMIC CLASSIFICATIONSUMMARY OF ECONOMIC CLASSIFICATION
2013/14 2012/13
Economic Classifi-cation
Final Appropria-
tion
Actual Expen-diture
Variance
Variance as
% against final
allocation
Final Appro-priation
Actual Expenditure
Current payments
758 398 759 285 (887) (0,1)% 435 106 435 795
Transfers and subsidies
1 608 417 1 600 775 7 642 0.5% 1 213 826 1 209 324
Payments for capital assets
5 302 2 726 2 576 48.6% 6 092 6 092
TOTALTOTAL 2 372 1172 372 117 2 362 7862 362 786 9 3319 331 0,4%0,4% 1 655 0241 655 024 1 651 2111 651 211
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
DETAILS OF TRANSFER PAYMENTS (1)DETAILS OF TRANSFER PAYMENTS (1)
Adjusted Appropriation Act
R’000
Actual Transfer
R’000
Variance
USAASA 60 090 60 090 -
USAF 45 046 45 046 -
USAF – Set Top Box Subsidy 240 000 240 000 -
ICASA 390 661 390 661 -
NEMISA 50 746 50 746 -
Sentech – Digitisation 529 304 529 304 -
Sentech – AFCON 6 000 6 000 -
SABC: Public Broadcaster 127 055 127 055 -
SABC- Channel Africa 44 673 44 673 -
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
Adjusted Appropriation
Act
R’000
Actual Transfer
R’000
Variance
SABC: Digital Migration Project 76 000 76 000 -
SABC: Programme Production 10 550 - 10 550
SABC: Community Radio Stations 8 842 8 842 -
.za Domain Name Authority 1 583 - 1 583
Sector Education and Training Authority: ISETT-SETA
249 - 249
International Telecommunications Union
10 826 14 212 (3 386)
DETAILS OF TRANSFER PAYMENTS (2)DETAILS OF TRANSFER PAYMENTS (2)
35
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
• Content – First level• Second level
• Third level
Adjusted Appropriation
Act
R’000
Actual Transfer
R’000
Variance
Universal Postal Union 3 555 4 667 (1 112)
African Telecommunication Union 710 853 (143)
Pan African Postal Union 680 753 (73)
Commonwealth Telecommunication Organisation
281 - 281
Organisation for Economic and Cultural Development
109 417 (308)
DETAILS OF TRANSFER PAYMENTS (3)DETAILS OF TRANSFER PAYMENTS (3)
36
RESPONSE TO AUDITOR-GENERAL’S FINDINGS
RESPONSE TO AUDITOR-GENERAL’S FINDINGS
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In the annual report for 2013/2014, the Auditor-General has raised
the following key matters:
•Payment of Suppliers
•Human resources management
•Information Technology (IT)
•Supply Chain Management
•Governance
•Expenditure Management
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Payment of Suppliers Payment of Suppliers
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Action Plan Status
Payment of suppliers in 30 days
• The Department is currently implementing invoice receipt register.
• Invoices are date stamped upon receipt.• Monthly follow up on outstanding commitments is
done• RR101 report is used to monitor the payment
progress of invoices received and captured.• Follow ups on long outstanding invoices are
done and exception reports submitted to National Treasury.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Human Resources Management (1) Human Resources Management (1)
Action Plan
Status
Filling in of critical and funded vacancies
• Critical positions as Non-SMS and SMS levels have been identified and advertised. Interviews and appointments are at various stages in terms of progress. A detailed report on vacancies is available in this regard.
• The current vacancy rate of funded positions is 11.2%, which represents a significant reduction from 34% last year.
• Staff in critical positions were appointed such as the DDG: SOCs Oversight & Enterprise Development; DDG: Information Society Development & Research and DDG: ICT Infrastructure Support, thus ensuring a full complement of DDG’s. (DDG: ISAD & Research has since resigned)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
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Action Plan Status
Verification and pre-screening of applicants
• Pre-screening on all appointments are currently conducted through the assistance of State Security Agency prior to appointment.
Signing of Performance Agreements
• Performance agreements for 2014/2015 have been signed with the exception of 2 officials. Disciplinary steps are being taken against both the officials.
• Furthermore, Internal Audit has conducted an audit on submission of performance agreements for the current 14/15 FY with minimal findings as compared to the previous FY.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Human Resources Management (2) Human Resources Management (2)
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Action Plan Status
Appointment of the Chief Financial Officer
• The CFO was appointed in January 2014 and resigned in March 2014. The position was advertised and the suitable candidate could not be found. The head hunting process has commenced and interviews are scheduled to take place by Mid November 2014.
• The previous CFO’s non-disclosure was discovered before his appointment however it was not reported by an HR official who has since been charged and released from the employment of the Department
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Human Resources Management (3) Human Resources Management (3)
Information Technology Information Technology
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Action Plan Status
Implementation of Disaster Recovery (DR)
• The DR infrastructure has been implemented at SITA.
• The upgrade of the infrastructure by SITA will be implemented to ensure compatibility with the DR.
Upgrade of the ageing IT infrastructure
SITA has conducted an assessment on the existing infrastructure and will be recommending appropriate upgrades and lead the actual implementation.
Implementation of password controls to prevent users from being locked-out
• The appropriate anti-virus software has been purchased and installed.
• This was subsequently audited by the Internal Audit and the AG with no findings.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Supply Chain Management (SCM) Supply Chain Management (SCM)
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Action Plan Status
Prevention and detection of irregular expenditure
• Compliance reviews are conducted on all transactions pre and post procurement to ensure that there is full compliance with policies and procedures of the Department.
• Internal audit conducts regular checks on compliance with SCM policies and procedures
• All suppliers in the Department are subjected to pre-screening by State Security.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Governance Governance
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Action Plan Status
Review of Departmental policies and procedures
• The Operations Committee (OPSCOM) was established to review all the policies of the Department.
• The OPSCOM has reviewed key policies which have been approved.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Expenditure vs Performance Expenditure vs Performance
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Action Plan Status
All projects were costed and budgeted in the beginning of the financial year
Expenditure on projects are currently monitored on a monthly basis to ensure that funds are used in line with the allocation.
The Department reported 100% expenditure of its budget due to the following reasons:
•Prior year commitments •Ad hoc projects which were not budgeted for•Reprioritization of funds •Transfers•Currency fluctuations on international organizations membership fees
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Resolved Audit Findings (2012/13) Resolved Audit Findings (2012/13)
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Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
Findings Status
Management of leave Leave is currently being monitored to ensure that proper approval procedures are observed. HR regularly conducts quality checks on all leave files to ensure compliance. Two audits on leave are conducted annually by Internal Audit and Human Resources.
Overtime The Overtime policy has been approved and a 30% threshold has been implemented on Persal.
Management of fixed assets
Internal controls have been introduced to ensure that the department keeps an accurate and updated asset register.
Appointments made on unfunded positions
Measures have been put in place to ensure that only the funded positions are advertised and filled.
Targets were not specific and measurable
The Department has developed a technical indicator description for its 2013/14 APP. Going forward the DoC engaged further with National Treasury so as to improve the Technical Indicator description for the 2014/15 APP thus improving the measurability of targets.
Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development
THANK YOU
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