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The Presidency Annual Report 2018-2019

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The Presidency Annual Report 2018-2019 2YEARS of DEMOCRACY5 THE PRESIDENCY ANNUAL REPORT 2018 / 2019 THE PRESIDENCY REPUBLIC OF SOUTH AFRICA 2YEARS of DEMOCRACY5 VOTE NO. 1 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 2018 to 31 March 2019. Ms Lusanda Mxenge Acting Chief Operations Officer i THE PRESIDENCY Annual Report 2018/2019 2 President Cyril Ramaphosa delivering his State of the Nation Address in a joint sitting of the opening of Parliament. 2YEARS of DEMOCRACY5 TABLE OF CONTENTS PART A: GENERAL INFORMATION 4 1. DEPARTMENT GENERAL INFORMATION 4 2. LIST OF ABBREVIATIONS/ACRONYMS 5 3. INTRODUCTION BY THE MINISTER 6 4. FOREWORD BY THE DIRECTOR-GENERAL 8 5. OVERVIEW BY THE COO 11 6. REPORT OF THE ACCOUNTING OFFICER 15 7. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 24 8. STRATEGIC OVERVIEW 27 8.1 VISION 27 8.2 MISSION 27 8.3 VALUES 27 8.4 LEGISLATIVE AND OTHER MANDATES 27 9 ORGANISATIONAL STRUCTURE 30 PART B: PERFORMANCE INFORMATION 33 1. AUDITOR-GENERAL SOUTH AFRICA’S REPORT: PREDETERMINED OBJECTIVES 33 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 33 2.1 SERVICE DELIVERY ENVIRONMENT 33 2.2 SERVICE DELIVERY IMPROVEMENT PLAN 34 2.3 ORGANISATIONAL ENVIRONMENT 34 2.4 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES 35 3. STRATEGIC OUTCOME ORIENTED GOALS 35 4. PERFORMANCE INFORMATION BY PROGRAMME 47 4.1 PROGRAMME 1: ADMINISTRATION 47 4.2 PROGRAMME 2: EXECUTIVE SUPPORT 57 5. TRANSFER PAYMENTS 60 5.1 TRANSFER PAYMENTS TO PUBLIC ENTITIES 60 5.2 TRANSFER PAYMENTS TO ALL ORGANISATIONS OTHER THAN PUBLIC ENTITIES 60 6. CONDITIONAL GRANTS 60 6.1 CONDITIONAL GRANTS AND EARMARKED FUNDS PAID 60 6.2 CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED 60 7. DONOR FUNDS 60 7.1 DONOR FUNDS RECEIVED 60 8. CAPITAL INVESTMENT 60 8.1 CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN 60 PART C: GOVERNANCE 63 1. INTRODUCTION 63 2. RISK MANAGEMENT 63 3. FRAUD AND CORRUPTION 63 4. MINIMISING CONFLICT OF INTEREST 64 5. CODE OF CONDUCT 64 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 64 7. PRIOR MODIFICATIONS TO AUDIT REPORTS 65 8. INTERNAL CONTROL UNIT 66 9. INTERNAL AUDIT AND AUDIT COMMITTEES 66 10. AUDIT COMMITTEE REPORT 67 PART D: HUMAN RESOURCE MANAGEMENT 69 1. OVERVIEW OF HUMAN RESOURCES 69 1.1 HUMAN RESOURCES OVERSIGHT STATISTICS 70 PART E: FINANCIAL INFORMATION 86 1. REPORT OF THE AUDITOR-GENERAL SOUTH AFRICA 86 2. ANNEXURE: AUDITOR-GENERAL SOUTH AFRICA’S RESPONSIBILITY FOR THE AUDIT 90 3. ANNUAL FINANCIAL STATEMENTS 93 4. ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS 131 1 THE PRESIDENCY Annual Report 2018/2019 2 2YEARS of DEMOCRACY5 President Cyril Ramaphosa and Deputy President David Mabuza. 3 THE PRESIDENCY Annual Report 2018/2019 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: Union Buildings Government Avenue Pretoria POSTAL ADDRESS: Private Bag x1000 Pretoria 0001 TELEPHONE NUMBER: +27 (0)12 300 5200 FAX NUMBER: +27 (0)12 323 8246 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.thepresidency.gov.za 4 2YEARS of DEMOCRACY5 2. LIST OF ABBREVIATIONS/ACRONYMS AFS Annual Financial Statements PEP Public Employment Programme AGSA Auditor-General South Africa PFMA Public Finance Management Act APP Annual Performance Plan PIC Public Investment Corporation APRM African Peer Review Mechanism PICC Presidential Infrastructure Coordinating Commission ARC African Regional Centre POA Programme of Action AU African Union PRASA Passenger Rail Agency of South Africa B-BBEE Broad-based Black Economic Empowerment PRS Policy and Research Services BEEAC Black Economic Empowerment Advisory Council PSCBC Public Service Coordinating Bargaining Council BES Biodiversity Economy Strategy PSR Public Service Regulations BNC Bi-National Commission RMC Risk Management Committees BRICS Brazil, Russia, India, China and South Africa SACU South African Customs Union CIPC Companies and Intellectual property Commission SADC Southern African Development Community CFO Chief Financial Officer SALGA South African Local Government Association COGTA Cooperative Governance and Traditional Affairs SANAC South African National AIDS Council COO Chief Operations Officer SAPS: South African Police Service CRL Commission for the Promotion and Protection of the SARS: South African Revenue Service Rights of Cultural, Religious and Linguistic Communities SAS Special Audit Services CSD Central Supplier Database SCM Supply Chain Management DEA Department of Environmental Affairs SDG Sustainable Development Goals DG Director-General SMS Senior Management Service DDG Deputy Director-General SOEs State-Owned Enterprises DPME Department of Planning, Monitoring and Evaluation SOP Standard Operating Procedure DPSA Department of Public Service and Administration SONA State of the Nation Address DIRCO Department of International Relations and Cooperation SSA State Security Agency DSBD Department of Small Business Development STI Sexually Transmitted Infection EU European Union TB Tuberculosis FOSAD Forum of South African Directors-General TVET Technical Vocational and Education Training 4IR Fourth Industrial Revolution UAE United Arab Emirates G20 Group of 20 UN United Nations GCIS Government Communication and Information System UNGA United Nations General Assembly GDP Gross Domestic Product UPF Universal Peace Federation HOD Head of Department WEF World Economic Forum HRDC Human Resource Development Council YES Youth Employment Services ICT Information and Communications Technology ZCC Zion Christian Church IGAD Intergovernmental Authority on Development IMC Inter-Ministerial Committee LOGB Leader of Government Business MEC Member of the Executive Council MPAT Management Performance Assessment Tool MPSA Ministry of Public Service and Administration MRM Moral Regeneration Movement MTEF Medium-Term Expenditure Framework MTSF Medium-Term Strategic Framework NDP National Development Plan NEDLAC National Economic Development and Labour Council NGO Non-Governmental Organisation NHI National Health Insurance NHTL National House of Traditional Leaders NMOG National Macro Organisational of Government NPA National Prosecuting Authority NPC National Planning Commission NSG National School of Governance NYDA National Youth Development Agency OAU Organisation of African Unity OSD Occupation Specific Dispensation PAIA Promotion of Access to Information Act, 2000 PCC President’s Coordinating Council PCAS Policy Coordination and Advisory Services 5 THE PRESIDENCY Annual Report 2018/2019 Jackson Mthembu Minister in The Presidency 3. INTRODUCTION BY THE MINISTER During the past year our citizenry, under the guidance of greatest potential for growth and job creation. Government government, devoted themselves to the realisation of the introduced a range of measures to ignite economic activity, vision of a democratic, just and equitable society. In our glorious restore investor confidence, support employment and address diversity, and despite our many differences, our people have the urgent challenges that affect the lives of vulnerable members answered the call of Thuma Mina. of our society. During the year under review, government begun to rebuild The President launched the Youth Employment Service in a durable social compact with key stakeholders towards which unemployed youth are recruited into paid internships fundamental social and economic transformation. Through in companies across the economy. Government also did away various forms of dialogue and engagement with social with the requirement for work experience at entry-level in partners, government has aimed to restore the bonds of trust, state institutions in order to give young people opportunities dialogue and cooperation by reaching out to parts of our to start in the world of work with one less impediment. society that ostensibly have become disaffected, disinterested or marginalised. Government responded to the dire situation at several State-Owned Enterprise (SOE), where mismanagement and Working together with our partners in organised labour, corruption had severely undermined their effectiveness, business, civil society, and in communities, government focused with decisive measures to improve governance, strengthen its efforts on reigniting growth and creating jobs while removing leadership and restore stability. the constraints to inclusive growth and greater levels of investment. A Presidential Jobs Summit was successfully held The President has addressed concerns about the effects of that agreed on far-reaching measures that addressed concerns state capture on public institutions which are vital to a healthy about policy uncertainty and inconsistency, and approved national life, especially the law enforcement agencies, whose tangible agreements between government and the partners integrity and ability to fulfil their mandate were eroded in which is, when fully implemented, expected to nearly double recent years. Action was taken to stabilise and restore the the number of jobs being created in the economy each year. credibility of the South African Revenue Service (SARS), the State Security Agency (SSA), the South African Police Service During the year under review, government has had to confront (SAPS) and the National Prosecuting Authority (NPA). Of a technical recession in the economy. Government responded significance
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