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ANNUAL REPORT for the Year Ended 31 March 2016 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 DEPARTMENT OF TRANSPORT VOTE NO. 35 ANNUAL REPORT 2015/2016 FINANCIAL YEAR 1 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 Department of Transport Annual Report 2015/16 The Annual Report 2015/16 for the National Department of Transport is compiled with information from departmental and other sources. For more information, please contact: Strategic Planning and Cluster Coordination, National Department of Transport Private Bag X193 Pretoria, 0001, South Africa Tel: +27 12 3093893 Fax: +27 12 3093590 The Annual Report will be published on www.transport.gov.za ISBN 978-0-621-44902-0 | RP 326/2016 2 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 Contents PART A: GENERAL INFORMATION .................................................................................. 5 1. DEPARTMENT GENERAL INFORMATION ..................................................................................... 6 2. LIST OF ABBREVIATIONS/ACRONYMS ......................................................................................... 7 3. FOREWORD BY THE MINISTER..................................................................................................... 8 4. DEPUTY MINISTER STATEMENT ................................................................................................. 14 5. REPORT BY THE ACCOUNTING OFFICER….................................................................................16 6. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ...................................................................................................................................... 33 7. STRATEGIC OVERVIEW ............................................................................................................... 34 7.1 Vision ................................................................................................................................. 34 7.2 Mission .............................................................................................................................. 34 7.3 Values ................................................................................................................................ 34 8. LEGISLATIVE AND OTHER MANDATES ....................................................................................... 34 9. ORGANISATIONAL STRUCTURE ................................................................................................. 36 10. ENTITIES REPORTING TO THE MINISTER/MEC .......................................................................... 36 PART B: PERFORMANCE INFORMATION ....................................................................... 40 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................................. 41 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ...................................................................... 41 2.1 Service Delivery Environment ........................................................................................... 41 2.2 Service Delivery Improvement Plan .................................................................................. 45 2.3 Organisational environment ............................................................................................. 49 2.4 Key policy developments and legislative changes ............................................................ 49 3. STRATEGIC OUTCOME ORIENTED GOALS .................................................................................. 49 4. Performance Information by Programme……………………………………………………………..................51 Programme 1: Administration ................................................................................................... 51 Programme 2: Integrated Transport Planning .......................................................................... 57 Programme 3: Rail Transport.…………………………………………………………………………..………………....65 Programme 4: Road Transport .................................................................................................. 70 Programme 5: Civil Aviation ...................................................................................................... 74 Programme 6: Maritime Transport ........................................................................................... 81 5. TRANSFER PAYMENTS ............................................................................................................... 93 5.1. Transfer payments to public entities ................................................................................ 93 3 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 5.2. Transfer payments to all organisations other than public entities ................................... 94 6. CONDITIONAL GRANTS .............................................................................................................. 98 6.1. Conditional grants and earmarked funds paid ................................................................. 98 6.2. Conditional grants and earmarked funds received ......................................................... 125 7. DONOR FUNDS ........................................................................................................................ 126 7.1. Donor Funds Received .................................................................................................... 126 8. CAPITAL INVESTMENT ............................................................................................................. 129 8.1. Capital investment, maintenance and asset management plan .................................... 129 PART C: GOVERNANCE ................................................................................................. 130 1. INTRODUCTION ....................................................................................................................... 131 2. RISK MANAGEMENT ................................................................................................................ 131 3. FRAUD AND CORRUPTION ....................................................................................................... 131 4. MINIMISING CONFLICT OF INTEREST ...................................................................................... 132 5. CODE OF CONDUCT ................................................................................................................. 133 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ..................................................................... 133 7. PORTFOLIO COMMITTEES ....................................................................................................... 134 8. SCOPA RESOLUTIONS .............................................................................................................. 136 9. PRIOR MODIFICATIONS TO AUDIT REPORTS ........................................................................... 136 10. INTERNAL CONTROL UNIT ....................................................................................................... 137 11. INTERNAL AUDIT AND AUDIT COMMITTEES ........................................................................... 138 12. AUDIT COMMITTEE REPORT .................................................................................................... 141 PART D: HUMAN RESOURCE MANAGEMENT ............................................................. 145 1. INTRODUCTION ....................................................................................................................... 146 2. OVERVIEW OF HUMAN RESOURCES........................................................................................ 146 3. HUMAN RESOURCES OVERSIGHT STATISTICS ......................................................................... 147 PART E: FINANCIAL INFORMATION.............................................................................. 184 1. REPORT OF THE AUDITOR GENERAL ....................................................................................... 185 2. ANNUAL FINANCIAL STATEMENTS .......................................................................................... 191 4 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 PART A: GENERAL INFORMATION 5 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: 159 Forum Building Struben Street Pretoria POSTAL ADDRESS: Private Bag X193 Pretoria 0002 TELEPHONE NUMBER/S: 027 12 309 3000 / 3893 FAX NUMBER: 027 12 309 3590 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS : www.transport.gov.za 6 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 2. LIST OF ABBREVIATIONS/ACRONYMS AARTO Administration Adjudication of Road Traffic Offences AGSA Auditor General of South Africa AO Accounting Officer BBBEE Broad Based Black Economic Empowerment CFO Chief Financial Officer MEC Member of Executive Council HOD Head of Department PFMA Public Finance Management Act TR Treasury Regulations MTEF Medium Term Expenditure Framework NCAP National Airports Development Plan SMME Small Medium and Micro Enterprises SCM Supply Chain Management EU European Union SITA State Information Technology Agency SDIP Service Delivery Improvement Plan STER Single Transport Economic Regulator 7 DEPARTMENT OF TRANSPORT VOTE 35 ANNUAL REPORT for the year ended 31 March 2016 3. FOREWORD BY THE MINISTER
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