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Annual Report 2016 ANNUAL REPORT 2016 - 2017 This annual report of the Media Development and Diversity Agency (MDDA) describes and details the activities of the Agency for the period 1 April 2016 to 31 March 2017. This report has been prepared for submission to the Executive Authority and the Parliament of South Africa in line with the requirements of the Public Finance Management Act (No 1 of 1999) and the MDDA Act (No 14 of 2002). The Media Development and Diversity Agency (MDDA) is a statutory development agency for promoting and ensuring media development and diversity, set up as a partnership between the South African Government and major print and broadcasting companies to assist in (amongst others) developing community and small commercial media in South Africa. It was established in 2003, in terms of the MDDA Act No. 14 of 2002, and started providing grant funding to projects on 29 January 2004. MDDA ANNUAL REPORT 2016 - 2017 1 TABLE OF CONTENTS Vision 4 PART ONE: INTRODUCTION 5 Mission 4 1.1 Minister of Communications Foreword 6 1.2 Chairperson’s Statement and Foreword 7 Values 4 1.3 Chief Executive Officer’s Executive Summary and Overview 2016/2017 10 MDDA Value Proposition 4 1.4 MDDA Board 15 Overall Objective 4 1.5 Mandate of the MDDA 18 Mandate 4 PART TWO: PERFORMANCE FOR 2016/2017 20 2.1 Service Delivery Environment 21 2.2 Performance Against Objectives 23 2.3 Summary of Projects Supported for the Financial Year 34 PART THREE: ENVIRONMENTAL LANDSCAPE AND FUNDING 61 3.1 Growth and Development of Local Media 62 3.2 Advertising Revenue 62 3.3 Socio-Economic Impact and Return on Investment 71 3.4 Funding of the Agency 71 PART FOUR: HUMAN RESOURCES 73 4.1 Staff Complement 74 4.2 Employee Relations 74 4.3 Learning and Development 74 4.4 Remuneration and Benefits 74 4.5 Occupational Health and Safety 74 4.6 Tabulated Staff Head Count 75 4.7 Declaration of Directors Emolument (Excluding Non Executive Directors) 76 4.8 Allowances 76 4.9 Expenditure 76 4.10 Employment and Vacancies 77 4.11 Job Evaluation 78 MDDA ANNUAL REPORT 2016 - 2017 2 4.12 Employment Changes 80 4.13 Employment Equity 81 4.14 Performance Rewards 81 4.15 Foreign Workers 81 4.16 Labour Relations 81 PART FIVE: GOVERNANCE 82 5.1 The Board 83 5.2 Code of Ethics 83 PART SIX: ANNUAL FINANCIAL STATEMENTS 86 6.1 Statement of Responsibility and Approval 87 6.2 Audit and Risk Committee Report 88 6.3 Accounting Authority's Report 90 6.4 Report of The Auditor General to Parliament on The Media Development and 91 Diversity Agency 6.5 Statement of Financial Position 95 6.6 Statement of Financial Performance 96 6.7 Statement of Changes in Net Assets 97 6.8 Cash Flow Statement 98 6.9 Statement of Comparison of Budget And Actual Amounts 99 6.10 Accounting Policies 101 6.11 Notes to the Annual Financial Statements 113 MDDA ANNUAL REPORT 2016 - 2017 3 Vision MDDA Value Proposition An accessible, transformed and diversified media. “Integrated development services and resources that enable media development and diversity”. Mission Overall Objective Leading media development, transformation and diversification in South Africa through: “To ensure that all citizens can access information in a language of their choice and to • The creation of a vibrant, innovative and people-centered media. transform media access, ownership and control patterns in South Africa”. • A sustained community media through resourcing, skills development and capacity building. Mandate • Working towards a knowledge-based media through proactive research. • Serving, leading and anticipating the social, economic, technological and The Media Development and Diversity Agency (MDDA) mandate is to: environmental needs of communities. • Create an enabling environment for media development and diversity which reflects the needs and aspirations of all South Africans. Values • Redress exclusion and marginalisation of disadvantaged communities and persons from access to the media and the media industry. • Accountability • Promote media development and diversity by providing support primarily to We are responsible for our actions, decisions and policies as well as reporting and community and small commercial media projects. communicating our outcomes. • Encourage ownership and control of, and access to, media by historically • Inclusivity disadvantaged communities as well as by historically diminished indigenous We embrace and celebrate the richness of diversity and recognize the differing language and cultural groups. skills, experiences and perspectives of each beneficiary/community. • Encourage the development of human resources and training, and capacity building, • Integrity within the media industry, especially amongst historically disadvantaged groups. We are honest, transparent, reliable, fair, accountable and responsible for • Encourage the channelling of resources to the community media and small our actions. commercial media sectors. • Ubuntu • Raise public awareness with regard to media development and diversity issues. We are empathetic, courteous, appreciative and respectful to our staff and clients alike. • Professionalism We are efficient, effective, service delivery orientated, punctual and performance driven and work collectively. MDDA ANNUAL REPORT 2016 - 2017 4 PART ONE: INTRODUCTION MDDA ANNUAL REPORT 2016 - 2017 5 1.1 MINISTER OF COMMUNICATIONS FOREWORD It gives me great pleasure as the Executive Authority to submit the 2016/2017 Annual Report of the Media Development and Diversity Agency (MDDA). This report describes and details the activities of the Agency for the period 1 April 2016 to 31 March 2017. A free, independent and diverse media remains the lifeblood of our democracy. It ensures the right to expression of different viewpoints and rigorous public debate and, most importantly, plays a pivotal role in the reconstruction and development of our nation. Media development encapsulates promoting and creating an enabling environment to help redress exclusion and marginalisation of groups and interests from access to media - as audiences, owners, managers and producers of media. As a result, people in more places can create, distribute, access, and apply knowledge in the form of media content - and, so armed, drive development. Media development and diversity also form part of the priorities Government is pursuing. To this extent, there is recognition that much still needs to be done to deepen media transformation and ensure that disadvantaged communities directly partake in all aspects of media development and management. The success of our democracy, the National Ms Ayanda Dlodlo, MP Development Plan, the massive infrastructure development drive and the hopes of our Executive Authority people are dependent on access to information in languages of their choice. Minister of Communications Since the establishment of the Agency with the passing of the act in 2002, and with its first funded projects in 2004 through the partnership with government as a major priorities and the Constitution Act, 1996 (Act No. 108 of 1996), which are to promote shareholder and private sector, the MDDA has rolled out small commercial, community media development and diversity, media freedom, the right to freedom of expression publications and community radios in areas that have been historically denied access and freedom to receive and impart information or ideas. to media and information before. Our historically disadvantaged (HD) communities are now empowered to own their media and to have their own voice through the support of I hereby formally table this Annual Report to Parliament. the Agency, which includes capacity building and research in all areas that need to be improved as they learn how to manage these media houses. Young people are able to get training and job opportunities, which makes these entities a breeding ground for future development. Ms Ayanda Dlodlo, MP The policy foundations that have guided the MDDA activities are set out clearly in Executive Authority the MDDA Act. The objectives of the MDDA Act are in line with the national policy Minister of Communications MDDA ANNUAL REPORT 2016 - 2017 6 1.2 CHAIRPERSON’S STATEMENT AND FOREWORD It is with great pleasure that I present this Annual Report of the Media Development and Diversity Agency (MDDA) on behalf of the Board. The 2016/2017 financial year started with the community media sector in the midst of exciting changes, together with the concomitant challenges, in South Africa’s media landscape. Media, like the rest of society, has had to undergo profound changes whilst striving to be relevant in a fast changing world brought about by globalization and technological developments. Such developments are having a significant impact on community media and have reinforced the important role the MDDA plays in leading discussions and championing necessary changes for the sector. As a result, the MDDA, in its strategic planning, has committed to strengthening its position as a change and social transformation agent for the sector, providing leadership that will ensure the sustainability of community media in such dynamic times. This has required that the Agency expands its activities to reach a much wider audience through innovative means and public platforms. This includes the promotion of indigenous languages and making a contribution to community development and the alleviation of poverty and inequality. Language development is therefore an Phelisa Nkomo increasingly important area of concern, while the MDDA is also directing greater Chairperson attention to vulnerable groups, such as women, children, with a focus on child rights, and people with disabilities. An important initiative, which is gaining momentum, is the use of a shared broadcast platform as a means of breaking down barriers between and integrating communities. The initial initiative arose from a commitment made by the President of South Africa to enable the community of Eersterus to have access to their own community radio station. Poort FM, which provides a shared broadcast platform for the communities of Mamelodi and Eersterus, held its first annual general meeting in 2016 and progress is also advanced in developing a similar model for the communities of Khayelitsha and Gugulethu.
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