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Annual Report 2017/18

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Annual Report 2017/18 ANNUAL REPORT 2017/18 Railway Safety Regulator Annual Report 2017/18 1 Railway Safety Regulator Annual Report 2017/18 2 Contents page PART A: GENERAL INFORMATION ..................................................................4 Foreword by the Board Chairperson ................................................................................. 7 Chief Executive Officer’s report ................................................................................. 9 Statement of responsibility ................................................................................. 10 Strategic overview .........................................................................................11 Values ...................................................................................................... 12 Legislative and other mandates ........................................................... 13 Our leaders ...................................................................................... 15 Board of Directors ......................................................................... 16 Organisational structure ............................................................. 17 PART B: PERFORMANCE INFORMATION......................... 19 PART C: GOVERNANCE ...................................... 41 Introduction .......................................................................... 42 The Board ............................................................................ 42 Resport of the Audit & Risk Committee ............................... 48 Conflict of interest ................................................................ 53 PART D: HUMAN RESOURCE MANAGEMENT.. ............. 57 Introduction .......................................................................... 58 PART E: FINANCIAL INFORMATION ................. 65 Annual Financial Statements .................................................. 71 Auditor-General’s report .......................................................... 74 NOTES ....................................................................... 123 Railway Safety Regulator Annual Report 2017/18 3 Information Registered name of the public entity Railway Safety Regulator Registered office address 1 Gordon Hood Avenue, Centurion, 0157 Postal address P O Box 11202, Centurion, 0051 Contact telephone numbers 012 848 3000 Website address http://www.rsr.org.za External Auditors information Auditor-General of South Africa 300 Middel Street, Brooklyn Banker’s information ABSA Company Secretary Mr Hulisani Murovhi Railway Safety Regulator Annual Report 2017/18 4 Glossary of terms NDP National Development Plan AFS Annual Financial Statements NIMS National Information Monitoring System APP Annual Performance Plan NIOH National Institute of Occupational Health AGSA Auditor-General South Africa PFMA Public Finance Management Act ASB Accounting Standards Board PLTC Provincial Level Crossing Committee CCMA Commission for Conciliation, PRASA Passenger Rail Agency of South Africa Mediation and Arbitration PTI Platform -Train Interface CEO Chief Executive Officer RAF Road Accident Fund COO Chief Operations Officer RIA Regulatory Impact Assessment DBE Department of Basic Education RSR Railway Safety Regulator DoT Department of Transport SABPP South African Board of People Practices DPSA Department of Public Service Administration SADC The Southern Africa Development Community EAP Employee Assistance Programme SANS South African National Standard ERM Enterprise-Wide Risk Management SARA Southern African Railways Association FOT Federal Office ofTransport SDIX Service Delivery Index FY Financial Year SMS Safety Management System GOE Guides to Operational Excellence SSP Sector Skills Plan GRAP Generally Recognised Accounting Practice TCO Train Control Officer IC Information Communication Technology TETA Transport, Education and Training Authority KPI Key Performance Indicator TFR Transnet Freight Rail MQS Management Quality System TOR Terms of Reference MTSF Medium-Term Strategic Framework NATMAP National Transport Master Plan Railway Safety Regulator Annual Report 2017/18 5 We are under no illusion about the enormity of the challenges facing the rail fraternity and the great task that awaits us all in reclaiming ‘the glory of our railways Railway Safety Regulator Annual Report 2017/18 6 Chairperson’s Foreword t is a singular honour and great privilege to present to you the Railway Safety Regulator’s Annual Report for the 2017/18 Financial Year. The IReport lays bare the Regulator’s performance for the year under review, which saw the organisation achieve 13 of the 18 annual cumulative targets set, translating regime in the SADC region, the RSR continues to be a into a 72% overall performance. member of SARA. It would be remiss of me not to acknowledge that One of the roles played by the Regulator in SARA is this performance is the lowest when compared to the to provide advice and guidance in aligning the Railway performance over the past five years. While we, as the Safety Management Standards adopted by the region. The Board of the RSR, are grateful to the employees of Regulator also guides and advises on the identification the Regulator for their selfless efforts in achieving this of the new standards to be harmonised throughout the kind of performance, we are under no illusion about the SADC region. To this end, the RSR spearheaded the enormity of the challenges facing the rail fraternity and establishment of the SARA Safety and Risk Committee the great task that awaits us all in reclaiming the glory and was elected as the inaugural Chair of the Committee of our railways. in the 2017/18 FY. During the year, the RSR showed signs of financial distress due to lower than expected revenue collection During this period, a total of 10 Railway Safety and unexpected costs. This triggered the Board to Management Standards have been harmonised and develop a financial recovery plan in order to mitigate adopted as SARA Regional Standards. the ongoing cash flow risks. The development of this These are but some of the RSR’s interventions in plan, therefore, came with a view that the long and the ensuring that the zero occurrences vision gradually short term interventions contained therein would yield a becomes a reality. positive financial turnaround. I wish to reiterate my earlier assertion that as the Board With all the macro investments in the rail of the RSR, we are grateful to all the men and women environment, the introduction of new technologies and under the employ of the Regulator, for diligently executing infrastructure is inevitable. This places the Regulator their responsibilities, no matter their rank. at a vantage point to work closely with interested and I would also like to express gratitude to the RSR Board affected stakeholders to provide guidance in mitigating and the National Department of Transport, under the the railway safety risks resulting from the introduction of stewardship of Minister Blade Nzimande, for being torch- new technologies into the rail system. In line with this, bearers and carrying the organisation on their shoulders. the RSR has conducted several technology reviews during the year under review. These include, inter alia, the system review of the Pienaarspoort-Pretoria corridor in Gauteng, as part of the trial phase of the introduction of PRASA’s Electric Multiple Units (EMU) trains. _______________________________________ In advancing our mandate to promote and improve Dr Nomusa Zethu Qunta harmonisation and integration of the railway safety CHAIRPERSON: RSR BOARD Railway Safety Regulator Annual Report 2017/18 7 Implementing these three strategic outcomes, which ultimately culminated in the RSR achieving a 72% overall ‘performance Railway Safety Regulator Annual Report 2017/18 8 CEO’s Foreword t is with great pleasure and a sense of accomplishment that I submit the 2017/18 Annual Report of the Railway Safety Regulator. This Report is a reflection of our Iperformance during the year under review and gives feedback A lot of effort and time was invested in implementing these about the initiatives implemented to address challenges. three strategic outcomes, which ultimately culminated in In preparation for the 2017/18 FY, the Regulator saw it politic the RSR achieving a 72% overall performance. Important to to review the 2016/17 industry railway safety performance, as highlight, however, is that the year under review was not without reported in the 2016/17 Annual State of Safety Report. While its challenges. Cash flow remained a cause for concern for certain operational occurrence trends continued to decrease, the better part of the year and this was attributable to, among there was no progress in reducing the number of some types others, the following factors of the high-risk occurrences such as level crossings, people • Unfunded accruals at the end of March 2017, which struck by trains, and platform-train interface occurrences. A exceeded the outstanding receivables and available further cause for concern was the continued identification of cash; human factors as one of the leading root causes behind these • Under-recovery of budgeted revenues, high cost of occurrences. employment and contractual commitments which To reduce the risks associated with the top five operational impacted the 2017/18 budget; and occurrences, as reported in the annual State of Safety Report, • Under-recovery of technology review fees due to it was important that risk management be strengthened at both disputes raised by operators
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