Annual Report 2016/2017
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CONTENTS PART A: GENERAL INFORMATION 1. GENERAL INFORMATION ................................................................................... 6 2. LIST OF ABBREVIATIONS/ACRONYMS ............................................................. 7 3. PRESENTATION OF THE MAYIBUYE TRANSPORT CORPORATION ANNUAL REPORT 2016/2017 ............................................................................................. 8 4. FOREWORD BY THE CHAIRPERSON .............................................................. 10 5. OVERVIEW BY THE CHIEF EXECUTIVE OFFICER ......................................... 12 6. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ............................................................................. 22 7. STRATEGIC OVERVIEW ................................................................................... 24 8. LEGISLATIVE AND OTHER MANDATES .......................................................... 26 9. ORGANISATIONAL STRUCTURE ..................................................................... 27 PART B: PERFORMANCE INFORMATION 1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES ................................. 30 2. SITUATIONAL ANALYSIS .................................................................................. 30 3. PERFORMANCE INFORMATION BY PROGRAMME ........................................ 36 Sub-Programme 1.1: Executive Office ................................................................ 36 Sub-Programme 1.2: Financial Management ...................................................... 39 Sub-Programme 1.3: Corporate Services ........................................................... 41 Divison 1.3.1: Human Resource Management .................................................... 41 Divison 1.3.2: ICT Management .......................................................................... 45 Sub-Programme 3.3: Marketing Management .................................................... 46 Programme 2: Operations Management ............................................................. 50 4. REVENUE COLLECTION ................................................................................... 57 5. CAPITAL INVESTMENT ..................................................................................... 57 2 CONTENTS PART C: GOVERNANCE 1. INTRODUCTION ................................................................................................ 60 2. THE ACCOUNTING AUTHORITY / BOARD ....................................................... 60 3. FRAUD AND CORRUPTION .............................................................................. 69 4. CODE OF CONDUCT ......................................................................................... 69 5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ......................................... 70 6. COMPANY SECRETARY ................................................................................... 71 7. SOCIAL RESPONSIBILITY ................................................................................. 72 8. AUDIT AND RISK COMMITTEE REPORT ......................................................... 73 PART D: HUMAN RESOURCE MANAGEMENT 1. INTRODUCTION ................................................................................................. 78 2. HUMAN RESOURCE OVERSIGHT STATISTICS .............................................. 82 PART E: FINANCIAL INFORMATION 1. REPORT OF THE EXTERNAL AUDITOR .......................................................... 88 2. ANNUAL FINANCIAL STATEMENTS ................................................................. 98 3 GENERAL INFORMATION Registered Name Mayibuye Transport Corporation Registration Number: Not Applicable PFMA Status: Schedule 3 D Public Entity Postal Address: P.O. Box 19596, Tecoma, 5214 Email Address: [email protected] Website Address: www.mayibuyetransport.co.za External Auditors: Auditor General of South Africa Bankers: Standard Bank Company Secretary (Acting): Mr Simphiwe Mbabane Head Office: Physical Address Shop 15, Beacon Bay Crossing, Cnr N2 and Bonza Bay Road, Beacon Bay, East London, Province of the Eastern Cape, 5241 Telephone Numbers - 081 289 5008, 081 253 2350, 081 259 6411 Fax Number - 043 745 2586 Alice Depot: Physical Address 6 Thompson Road, Alice, Province of the Eastern Cape, 5700 Telephone Numbers - 040 653 1371 Fax Number - 040 653 0003 Queenstown Depot: Physical Address 8 Faraday Road, Queendustria, Queenstown, Province of the Eastern Cape, 5320 Telephone Numbers - 045 858 8826 Fax Number - 045 858 8290 Reeston Depot: Physical Address Corner of Drummond and Mdantsane Access Roads, East London Province of the Eastern Cape, 5247 Telephone Numbers - 043 745 2582 Fax Number - 043 745 2152 Zwelitsha Depot: Physical Address Mount Coke Road, Zwelitsha, King William’s Town Province of the Eastern Cape, 5608 Telephone Numbers - 040 654 1351 Fax Number - 040 655 1907 6 LIST OF ABBREVIATIONS /ACRONYMS AFS Annual Financial Statements AGSA Auditor-General of South Africa AO Accounting Officer BBBEE Broad Based Black Economic Empowerment CEO Chief Executive Officer CFO Chief Financial Officer COO Chief Operations Officer CSI Corporate Social Investment DoT Department of Transport DM Divisional Manager EM Executive Manager EWP Employee Wellness Policy FMS Fleet Management System GAAP Generally Accepted Accounting Practices GDP Gross Domestic Product HRD Human Resource Development HRM Human Resource Management IA Internal Audit IAS International Accounting Standard ICT Information and Communication Technology MEC Member of the Executive Council MTC Mayibuye Transport Corporation MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NTR National Treasury Regulations OD Organisational Development OHSA Occupational Health and Safety Act (No. 85 of 1993) PFMA Public Finance Management Act (No. 1 of 1999 as amended) PGDP Provincial Growth and Development Plan PMDS Performance Management and Development System SABEA South African Bus Employer’s Association SABOA South African Bus Operator’s Association SCM Supply Chain Management SCOPA Standing Committee on Public Accounts SLA Service Level Agreement 7 PRESENTATION OF THE MAYIBUYE TRANSPORT CORPORATION ANNUAL REPORT 2016/2017 In terms of the requirements of section 55(1) Department of Transport. We declare that of the Public Finance Management Act, Act the Annual Report fairly presents the state of 1 of 1999, the Accounting Authority presents affairs of the MTC, its business, financial the Annual Report of the Mayibuye results, performance against predetermined Transport Corporation (MTC), for the period objectives and financial position as at the 1 April 2016 to 31 March 2017, to the end of the financial period under review. Executive Authority, the Eastern Cape 8 9 FOREWORD BY THE CHAIRPERSON whom indicated that they are aware of the MTC’s brand. A total of 63% of the respondents stated that they are likely to recommend the MTC as a public transport service provider, proving that we are well on our way to becoming a public transporter of choice. It is evident that, despite the tough environment aggravated by limited economic growth, the MTC has begun to Welcome to the Mayibuye Transport position itself to take advantage of every key Corporation 2016-2017 Annual Report. The opportunity that presents itself. In this regard report theme is “Pursue New Roads”, words the innovative Park and Ride service that well describe the innovative and between Bhisho and East London, which improved MTC. We are focused more than uses semi-luxury buses to transport mainly ever on expanding the desirability of the employees of government, is operating at MTC and bringing more people in. full capacity. A new Park and Ride service Ultimately, our theme for this report re- between Alice and Bhisho has also been affirms that the Corporation is a new established and is operating at full capacity. organisation with a new way of thinking. It is Similar projects are planned for Amalinda an acknowledgement that the Eastern Cape and Gonubie. is progressing and so is the MTC. One of the strategic goals of the MTC has Guided by the MTC’s Strategic Plan, the been to establish a highly effective and entity has shown to make significant strides efficient operating model. This remains a key towards becoming an attractive investment focus area which is continually subjected to space for all its stakeholders. Among the refinement and improvement. The Board successes the MTC realised during 2016/17, commissioned a complete organisation we note that two of our depots in the redesign supported by a comprehensive Amathole and Chris Hani District skills audit and suitable personnel Municipalities were revamped. In line with placement programme. It is the expectation our goal to provide a safe and reliable that this initiative will result in the MTC service – no fatalities were reported. comprising of highly qualified, skilled and experienced professionals who have the Exceptional service delivery remains at the passion, commitment and expertise to core of all we do. A Customer Satisfaction successfully manage and deliver projects Survey was conducted on all active duties, across all service delivery areas. With its the results of which indicate that 92% of unique depth of local knowledge combined customers are satisfied with the service they with continuously improving technical receive from the MTC. This is a fantastic 7% capability, the MTC is ideally positioned to increase from the prior year. A Brand respond to all our