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6 th ADMINISTRATION THE PRESIDENCY ANNUAL REPORT 2019/2020 THE PRESIDENCY REPUBLIC OF SOUTH AFRICA 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 2019 to 31 March 2020. Mr Thulani Mdakane Acting Chief Operations Officer i President Cyril Ramaphosa casting his vote at Hitekani Primary School, Chiawelo, Soweto, 8 May 2019. THE PRESIDENCY Annual Report 2019/2020 TABLE OF CONTENTS PART A: GENERAL INFORMATION 5 1. DEPARTMENT GENERAL INFORMATION 6 2. LIST OF ABBREVIATIONS/ACRONYMS 7 3. FOREWORD BY THE MINISTER 8 4 FOREWORD BY THE FORMER DIRECTOR-GENERAL 11 5. REPORT OF THE FORMER ACCOUNTING OFFICER 13 6. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 21 7. STRATEGIC OVERVIEW 22 7.1. VISION 22 7.2. MISSION 22 7.3. VALUES 22 8. LEGISLATIVE AND OTHER MANDATES 22 9. ORGANISATIONAL STRUCTURE 26 PART B: PERFORMANCE INFORMATION 29 1. AUDITOR-GENERAL’S REPORT: PREDETERMINED OBJECTIVES 29 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 29 2.1 SERVICE DELIVERY ENVIRONMENT 29 2.2 SERVICE DELIVERY IMPROVEMENT PLAN 34 2.3 ORGANISATIONAL ENVIRONMENT 36 2.4 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES 37 3. STRATEGIC OUTCOME ORIENTED GOALS 37 4. PERFORMANCE INFORMATION BY PROGRAMME 47 4.1 PROGRAMME 1: ADMINISTRATION 47 4.2 PROGRAMME 2: EXECUTIVE SUPPORT 53 5. TRANSFER PAYMENTS 58 5.1. TRANSFER PAYMENTS TO PUBLIC ENTITIES 58 5.2. TRANSFER PAYMENTS TO ALL ORGANISATIONS OTHER THAN PUBLIC ENTITIES 58 6. CONDITIONAL GRANTS 58 6.1. CONDITIONAL GRANTS AND EARMARKED FUNDS PAID 58 6.2. CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED 58 7. DONOR FUNDS 58 7.1. DONOR FUNDS RECEIVED 58 8. CAPITAL INVESTMENT 58 8.1. CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN 58 PART C: GOVERNANCE 61 1. INTRODUCTION 61 2. RISK MANAGEMENT 61 3. FRAUD AND CORRUPTION 61 4. MINIMISING CONFLICT OF INTEREST 62 5. CODE OF CONDUCT 62 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 62 7. PRIOR MODIFICATIONS TO AUDIT REPORTS 63 8. INTERNAL CONTROL UNIT 64 9. INTERNAL AUDIT AND AUDIT COMMITTEES 64 10. AUDIT COMMITTEE REPORT 66 11. B-BBEE COMPLIANCE PERFORMANCE INFORMATION 68 PART D: HUMAN RESOURCE MANAGEMENT 71 1. INTRODUCTION 71 2. OVERVIEW OF HUMAN RESOURCES 71 3. HUMAN RESOURCES OVERSIGHT STATISTICS 72 PART E: FINANCIAL INFORMATION 88 1. REPORT OF THE AUDITOR-GENERAL 88 2. ANNUAL FINANCIAL STATEMENTS 94 3 6 th ADMINISTRATION THE PRESIDENCY Annual Report 2019/2020 Deputy President David Mabuza handing over land to the Seoding and Ga-Mopedi Communities in the Northern Cape, 19 April 2020. 6 th ADMINISTRATION PART A: GENERAL INFORMATION 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 6 THE PRESIDENCY Annual Report 2019/2020 PART A: GENERAL INFORMATION 2. LIST OF ABBREVIATIONS/ACRONYMS AFS Annual Financial Statements SDGs Sustainable Development Goals ARC African Regional Centre SMS Senior Management Service AU African Union SOEs State-Owned Enterprises B-BBEE Broad-based Black Economic Empowerment SONA State of the Nation Address BEEAC Black Economic Empowerment Advisory Council SOP Standard Operating Procedure BRICS Brazil, Russia, India, China and South Africa TB Tuberculosis CFO Chief Financial Officer TVET Technical Vocational and Education Training COO Chief Operations Officer UN United Nations DIRCO Department of International Relations UNGA United Nations General Assembly and Cooperation YES Youth Employment Services DG Director-General DPME Department of Planning, Monitoring and Evaluation DPSA Department of Public Service and Administration FOSAD Forum of South African Directors-General G20 Group of 20 GCIS Government Communication and Information System HOD Head of Department HRDC Human Resource Development Council IMC Inter-Ministerial Committee LOGB Leader of Government Business 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 NHTL National House of Traditional Leaders NPC National Planning Commission NYDA National Youth Development Agency OAU Organisation of African Unity OSD Occupation Specific Dispensation PCAS Policy Coordination and Advisory Services PCC President`s Coordinating Council PEP Public Employment Programme PFMA Public Finance Management Act PICC Presidential Infrastructure Coordinating Commission PSR Public Service Regulations RMCs Risk Management Committees SADC Southern African Development Community SALGA South African Local Government Association SANAC South African National AIDS Council SAS Special Audit Services SCM Supply Chain Management 7 6 th ADMINISTRATION Mr Jackson Mthembu Minister in The Presidency 3. INTRODUCTION BY THE MINISTER The manifesto of the governing party led to South Africans Since coming into office, President Ramaphosa has championed convincingly voting for the party that is to govern this country economic growth through the second SA Investment for another five years. As the Sixth Administration, we want Conference held in November 2019 and Job Summits to continue to work with our people to grow South Africa among other successfully initiated projects in the year under together. It is only through our collective efforts that we will be review. The Digital Economy Summit which took place in able to build the nation we want and deserve. July reaffirmed government’s commitments to providing the required infrastructure to enable our digital ascendancy in The sixth national and provincial elections in May 2019 order to better serve our people. demonstrated that democracy and constitutionalism are well entrenched in South Africa. The institutions that have The Presidential Economic Advisory Council came into effect been established since 1994 are strong, durable and enjoy from October 2019. The Council constitutes expertise in the confidence and support of the South African people. international economics, macroeconomics (including fiscal The May 2019 general elections were the sixth free, fair policy and monetary economics) and socio-economic matters and democratic elections held since the end of Apartheid such as labour, education, poverty and inequality as well as urban in 1994. The segregation of responsibilities divided between development. Other areas of insights entail microeconomics the three different interdependent arms of the State, namely with a focus on network industries, regulation and competition, the Executive (Cabinet), the Legislature (Parliament) and the trade, energy and climate change. The Council will continue to Judiciary (Courts of Law), and the role of the Constitutional serve as a forum for in-depth and structured discussions on Chapter 9 institutions, deepens and ensures the sustainability emerging global and domestic developments, economic and of our democracy. development policies, and facilitate the socialisation and diligent execution thereof. South Africa inaugurated its sixth democratically elected President, His Excellency President Cyril Matamela Ramaphosa, In view of government’s own recognition of shortcomings on 25 May 2019. The inauguration took place under the theme in service delivery and in response to demands by citizens “Together Celebrating Democracy: Renewal and Growth for a and institutions of civil society for improved delivery, Cabinet Better South Africa”, reinforcing that everyone has a role to play has adopted a new integrated District Development Model in building a brighter tomorrow. Its emphasis was on building (DDM) to streamline development in the 44 districts and towards our achievements and working even harder to tackle eight metros that constitute the country. The DDM aims to the triple challenges of poverty, inequality and unemployment. address service delivery and economic development challenges through the synchronisation of planning across all spheres of 8 THE PRESIDENCY Annual Report 2019/2020 government, working alongside social partners such as business complement and support other national activities relating to and communities. From planning to implementation in each the 4IR. Among these national initiatives is the establishment by district, government will consult social partners to ensure President Ramaphosa of the Presidential Commission on the that development meets the needs of local communities and 4IR. During the year under review, the President appointed 30 stakeholders and ensure that the local, provincial and national members of the Presidential Commission on the 4IR to assist spheres have a shared plan to drive development in the district government in taking advantage of the opportunities presented concerned. Implementation will entail localised procurement by the digital revolution and to identify relevant policies, and job creation to ensure that local businesses participate in strategies and action plans that will position South Africa as a and benefit from development, and that citizens in the district
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