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Years of Nelson Mandela & Albertina Sisulu years of Nelson Mandela & Albertina Sisulu THE PRESIDENCY ANNUAL REPORT 2017 / 2018 THE PRESIDENCY REPUBLIC100 OF SOUTH AFRICA THE PRESIDENCY ANNUAL REPORT 2017/2018 years of Nelson Mandela & Albertina Sisulu VOTE NO. 1 100 THE PRESIDENCY REPUBLIC OF SOUTH AFRICA SUBMISSION OF THE ANNUAL REPORT TO THE EXECUTIVE AUTHORITY To the President of the Republic of South Africa, His Excellency President Cyril Ramaphosa, I have the honour of submitting to you, in terms of Section 40 of the Public Finance Management Act (PFMA), 1999 (Act 1 of 1999), the Annual Report of The Presidency for the period 1 April 2017 to 31 March 2018. Ms Lusanda Mxenge Acting Chief Operations Officer i THE PRESIDENCY ANNUAL REPORT 2017/2018 2 THE PRESIDENCY ANNUAL REPORT 2017/2018 years of Nelson Mandela TABLE OF CONTENTS & Albertina Sisulu PART A: GENERAL INFORMATION 4 DEPARTMENT GENERAL INFORMATION 4 INTRODUCTION BY THE MINISTER 1004 FOREWORD BY THE DIRECTOR-GENERAL 7 OVERVIEW BY THE ACCOUNTING OFFICER 10 REPORT OF THE ACCOUNTING OFFICER 15 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 23 STRATEGIC OVERVIEW 25 ORGANISATIONAL STRUCTURE 28 PART B: PERFORMANCE INFORMATION 31 AUDITOR-GENERAL’S REPORT: PREDETERMINED OBJECTIVES 31 OVERVIEW OF DEPARTMENTAL PERFORMANCE 31 STRATEGIC OUTCOMES ORIENTED GOALS 34 PERFORMANCE INFORMATION BY PROGRAMME 47 Programme 1: Administration 47 Programme 2: Executive Support 57 PART C: GOVERNANCE 63 INTRODUCTION 63 RISK MANAGEMENT 63 FRAUD AND CORRUPTION 64 MINIMISING CONFLICT OF INTEREST 64 CODE OF CONDUCT 65 HEALTH SAFETY AND ENVIRONMENTAL ISSUES 65 PRIOR MODIFICATIONS TO AUDIT REPORTS 66 INTERNAL CONTROL UNIT 67 INTERNAL AUDIT AND AUDIT COMMITTEES 67 AUDIT COMMITTEE REPORT 68 PART D: HUMAN RESOURCE MANAGEMENT 71 OVERVIEW OF HUMAN RESOURCES 71 HUMAN RESOURCES OVERSIGHT STATISTICS 73 PART E: FINANCIAL INFORMATION 89 REPORT OF THE AUDITOR-GENERAL 89 ANNUAL FINANCIAL STATEMENTS 95 LIST OF ABBREVIATIONS/ACRONYMS 143 1 THE PRESIDENCY ANNUAL REPORT 2017/2018 2 THE PRESIDENCY ANNUAL REPORT 2017/2018 years of Nelson Mandela & Albertina Sisulu 100 3 THE PRESIDENCY ANNUAL REPORT 2017/2018 South Africa recently marked the 5th anniversary of the launch of the National Development Plan (NDP). The plan has been our consistent touchstone as we navigate the difficult global economic environment, delivering economic stability and favourable conditions for foreign and domestic investment. We are more confident that in the medium to long term, the citizenry will reap sustained economic benefits. The success of the NDP and other government interventions is premised to a large extent on active citizenry and the direct involvement of people from all sectors of society, for which we are humbled and grateful. At the same time, government believes that the consistent attention given to the building of a capable developmental state is fundamental to the execution of the mandate given to it by the electorate. Yet, of equal importance is Dr Nkosazana Dlamini Zuma the global and regional environment and domestic policy certainty. Minister in The Presidency for Planning, Monitoring and Evaluation For these reasons, much effort has gone into aligning our own national plans to the United Nation’s 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063 - “The Africa we want” - which is its plan for African renewal. INTRODUCTION BY THE MINISTER It is therefore no surprise that South Africa participates actively in continental efforts to silence the guns and end all conflicts by 2020. Peace is a fundamental requirement for growth and development for us, as it is for all of Africa. Accordingly, South Africa is involved in peace-keeping, mediation and peace-negotiations in its sister nations, such as South Sudan, Lesotho, the Central African Republic, the DRC, and Mali. South Africa’s aims of combatting inequality, eradicating poverty and addressing unemployment through sustainable and inclusive economic growth embodied in our NDP and our Vision 2030, permeates the AU’s Agenda 2063 and the UN’s 2030 Agenda for Sustainable Development. Through South Africa’s participation in UN processes to finalise the Sustainable Development Goals (SDG’s) of the UN’s 2030 Agenda for Sustainable Development - primarily in the capacity as Co-chair of the Group of 77 with China - the country was able to lead and protect the interests of its citizens and that of the developing world. To a large extent, the current global policy environment is thus favourably aligned with our national priorities. One of the major developments in the 2017/18 financial year was the launch of the Africa Regional Centre (ARC) of the New Development Bank (NDB) in South Africa. The launch of the BRICS’s ARC further demonstrates government’s commitment to providing access to capital for infrastructure projects in Africa and other developing countries. Government is of the view that the NDB must be responsive to emerging and developing markets and to Africa in particular, and assist in taking forward the 4 THE PRESIDENCY ANNUAL REPORT 2017/2018 years of Nelson Mandela PART A: GENERAL INFORMATION & Albertina Sisulu INTRODUCTION BY THE MINISTER developmental agenda of the continent. Areas in which it would The Presidential Infrastructure Coordinating Commission like to see infrastructure investment include energy, transport, (PICC) brings together the leadership of the three spheres water and other productive sectors where deficiencies currently of government to discuss the planning and implementation100 of impede competitiveness in the broader global landscape. infrastructure programmes across the country. The President launched the People’s Train in Tshwane in March 2017, which On the domestic front, government is making significant boasts both comfort and safety for rail passengers, and the progress in achieving policy certainty and consistency in the Trans Africa locomotive in April. interest of creating a favourable investment environment. To this end, consultation on the revised Mining Charter is at an Subsequent to the Heher Commission on Higher Education advanced stage. Government has paid particular attention to Funding - which was established by the President after student engagements with affected communities across the country, protests in favour of free higher education - presenting its convinced that consensus and collaboration are crucial for the report, government paid the fee increase, which was capped at growth and development of this industry. Once finalised, the 8%, for all qualifying registered students (i.e. those with a gross Charter will balance the need for meaningful transformation in combined family income of up to R600 000 per annum for the the sector with the need to increase investment, employment 2017 academic year). Government also made arrangements and sustainability in the industry. through the National Student Financial Aid Scheme (NSFAS) for the payment of the upfront registration fees payable by Cabinet introduced a total of 33 bills to Parliament, the majority NSFAS-funded students at universities and TVET colleges. It is of which pertained to the economy, transport, finance, labour, appropriate that in this year of Nelson Mandela and Albertina education, registration of deeds, telecommunications, science Sisulu, both of whom put much store on education, that and technology, and rural development. government should reach another milestone on the path to universal free education. In terms of the promotion of small businesses and cooperatives – which government believes can be a major force for job- The Deputy President leads government’s efforts in the fight creation - the National Treasury gazetted new regulations on against HIV and AIDS as Chairperson of the South African preferential procurement in January 2017 to ensure that 30% National AIDS Council (SANAC). Government can continue of all government procurement goes to these enterprises. to report the significant progress being made in saving the lives Government will give further attention to ensuring that small and ensuring a better life for those living with HIV through businesses and cooperatives are not strangled by government its education and treatment programmes. It is through these regulations or red tape or by undue delays in being paid by interventions that the South African HIV and Aids infection rate government departments. The Black Economic Empowerment has been declining year by year from 1.77% in 2002 to 1.27% Advisory Council (BEEAC) advises the President and in 2016. government on general broad-based economic empowerment interventions to further level the playing field and facilitate entry Although under difficult fiscal conditions, government is working into all sectors of the economy. At the same time government to consolidate fiscal debt and rein in public expenditure through is contending with the practise of fronting, which impedes the careful consideration of expenditure and spending patterns and gains of transformation, through the BBBEE Commission. priorities. It has initiated measures to set the economy on a new path of growth, employment and transformation. With At programme level, government launched the Youth approximately R50 billion budget deficit as reported by the Employment Service (YES) in March 2018. This programme South African Revenue Service (SARS), inflation estimated aims to bridge the critical gap between education and the to be 4.6% (by June 2018), the rate of economic growth workplace through work experience for young
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