Department of Justice & Constitutional Development 2009/10 Annual Report; Medium Term Strategic Framework 2010/11 – 2014/15; 2011 Legislative Programme; Criminal Assets Recovery Account and the Guardian's Fund

Meeting report

Department of Justice and Constitutional Development 2009/10 Annual Report
Dr Khotso De Wee, Chief Operating Officer, Department of Justice and Constitutional Development (DOJCD), led the briefing on the Department’s annual report for the 2009/10 fiscal year (see attached document).

The presentation covered an introduction to the mandate, vision and mission, core functions, key strategic measurable objectives, the five national expenditure programmes and the operational highlights.  Budgetary constraints affected the completion of twelve court infrastructure programmes and the impact on service delivery was a major concern.  The vacancy rate was reduced to 10.7% and 3,094 appointments were made during 2009/10.  A total of 192 training programmes were presented to 5,613 officials.  The Integrated Case Management System (ICMS) was rolled out and a total of 11,328,000 transactions were processed through the system.

Adv Pieter Du Rand, Chief Director, DOJCD, presented the briefing on the improvement of the resolution of civil and criminal cases recorded during the year and the successful implementation of the administration of justice during the 2010 FIFA Soccer World Cup.

Dr De Wee reported on the protection and promotion of the rights of vulnerable groups and highlighted the implementation of the Children’s Act and the Child Justice Act.  The number of awaiting trail children was reduced to less than 300.  Statistical data was provided for domestic violence cases and maintenance cases processed by the courts.  The activities of the Department in developing and promoting the Constitution and in public education and communication were summarised.

Adv Lothian Basson, Acting Chief Master, DOJCD, gave an outline of the initiatives introduced to improve access to the services of the Master, the growth in beneficiary receipts and payments from the Guardian’s Fund and the supervision of the administration of deceased and insolvent estates.

Dr De Wee presented an overview of the legal advice service and the protection of organs of State and the transformation of the legal system.

Adv Du Rand covered the activities of the Justice Crime Prevention and Security (JCPS) Cluster.  The programmes were developed to give effect to Outcomes 1 and 3 and to reduce the levels of crime in the country.

Mr Johan Johnson, Chief Director: Third Party Funds, DOJCD, presented the financial report for the 2009/10 fiscal year.  The Department had spent 99.8% of its budget of R7.5 billion.  The Department received significantly less than the requested funding of R18 billion.

A breakdown of the expenditure of each of the five programmes, the expenditure per economic classification, departmental revenue and transfer payments were provided.  The Department had received qualified audit reports from the Auditor-General since 2001/02.  The qualified audit report for 2009/10 related to Third Party Funds and irregular expenditure resulting from non-compliance with the Preferential Procurement Policy Framework (PPPFA).  A summary of the audit opinions, the achievements in implementing the turnaround plan and the initiatives developed to address the audit opinions and qualifications were provided.

A summary of the electronic finds transfer (EFT) payments per province was included.  A detailed explanation of the new audit qualification concerning non-compliance with the PPPFA was provided.  The seven key initiatives developed to achieve clean audit reports were outlined.

The briefing included medium term expenditure estimates for the period 2010/11 to 2012/13.  A breakdown of the estimated budget allocations per programme and per economic classification was provided.  The presentation was concluded with a summary of the spending pressures for the Medium Term Expenditure Framework (MTEF) period.

2011 Legislative Programme of the Department of Justice and Constitutional Development
Adv Deon Rudman, Deputy Director-General, DOJCD presented the operational highlights during 2009/10 for the development of legislation as well as the legislative programme for 2011 (see attached document).

The Traditional Courts Bill, the Constitution Seventeenth Amendment Bill (Municipal functions, the Protection of Personal Information Bill, the Prevention and Combating of Trafficking in Persons Bill, the Protection from Harassment Bill and the Criminal Procedure Amendment Bill were already before Parliament. 

Twenty Bills would be introduced to Parliament during 2011, including the Superior Courts Bill and the accompanying Constitutional Amendment Bill, the Legal Practice Bill, the State Liability Amendment Bill, the Constitutional Amendment Bill (Part A of Schedule 4 of the Constitution), the Judicial Matters Amendment Bill, the Muslim Marriages Bill, the Sheriffs Amendment Bill, the Prohibition of Racism, Hate Speech, Xenophobia and Related Intolerance Bill, the South African Human Rights Commission Amendment Bill, the Legal Aid Amendment Bill, the Prevention and Combating of Torture Bill, the National Prosecuting Authority Amendment Bill, the Executive Members’ Ethics Amendment Bill, the Insolvency and Business Recovery Bill, the Administration of Estates Amendment Bill, the Criminal Procedure Amendment Bill, the Regulation of Interception of Communications and Provision of Communication- related Information Amendment Bill, the Extradition Bill, the Administration of Courts Bill and the Judicial Matters Second Amendment Bill.

Department of Justice and Constitutional Development Medium Term Strategic Framework 2010/11 to 2014/15
Ms Lebo Mphahlele, Chief Director: Strategy, Monitoring and Evaluation, DOJCD presented the briefing on the Department’s Medium Term Strategic Framework for the MTEF period 2010/11 to 2014/15 (see attached document).

The presentation included an outline of the planning process, the legislative mandate, the Minister’s priorities, stakeholder factors and core ideology of the DOJCD.  Details were provided of the planned 37 outputs under Programme 1 (Administration), Programme 2 (Courts Services) and Programme 3 (Legal Services).

Under Programme 1 (Administration), the DOJCD planned to improve corporate governance to comply with the Public Finance Management Act (PFMA); to improve internal control systems; to provide sound management of State resources; to expand justice to townships and rural areas; to lead the JCPS Cluster and strengthen the oversight mandate; to increase public understanding of justice and Constitutional issues and to protect victims from the impact of apartheid and crime.

The outputs under Programme 2 (Courts Services) included providing support to the judiciary; to review the criminal and civil justice systems; to ensure qualitative, quantitative and timely justice services; to provide support and leadership to regional offices, to improve the delivery of services in compliance with the principles of Batho Pele and to protect and promote the rights of vulnerable groups.

The outputs under Programme 3 (Legal Services) included to promote the Constitution and to strengthen participatory democracy; to improve the provision of legal services to organs of State and to administer probate services, the Guardian’s Fund and liquidation services.

Report on the Criminal Assets Recovery Account (CARA)
Mr Suresh Bhikha, Director: CARA, DOJCD presented the briefing on the Criminal Assets Recovery Account (see attached document).

The presentation covered the background to the establishment of CARA, the 2009 CARA Project, the status of the resolutions passed by the Select Committee on Public Accounts (SCOPA) and the issues concerning the accounting basis.

The current developments concerning CARA involved the application of the funds in CARA.  As at 31 December 2010, an amount of R240 million was available for allocation to law enforcement agencies and organisations rendering assistance to victims of crime.

The 2009/10 annual financial statements reflected a surplus of R51,223,000 for the year.  The total accumulated surplus amounted to R206,225,000.  Total cash assets amounted to R206,671,000.  CARA received an unqualified audit report from the Auditor-General.

As at 31 December 2010, contingent assets and liabilities indicated estimated net proceeds of R111.7 million.  The net proceeds from forfeited assets amounted to R34.4 million.  The total accumulated surplus was R240.6 million.

Report on the Guardian’s Fund
Adv Basson presented the report on the Guardian’s Fund to the Committee (see attached document).

The presentation included an overview of the background to the Fund and the financial management response to the issues plaguing the Fund.  The Guardian’s Fund received qualified audit reports or disclaimers from the Auditor-General from 1993 to 2006/07.  Since 2007/08, the Fund had received unqualified audit reports.  The report listed the accounting challenges faced by the Fund.

The Fund declared a surplus of R119.1 million in the 2009/10 financial year.  A graph illustrating the growth in beneficiary receipts and payments from 2005/06 to 2010/11 (second quarter) was included.  Total receipts in 2009/10 were R1,048,563 and the volume total was 24,006.  Total payments during the same year were R753,950 and the total volume was 52,776.  Graphs to illustrate transaction volumes and receipts and total assets vs. beneficiary liabilities were included.

A breakdown of the investments in the Public Investment Corporation (PIC) was provided.  The total amount invested at the end of 2009/10 amounted to R5.9 billion (R6.6 billion as at 31 December 2010).

The presentation concluded with the achievements, highlights and service delivery outcomes of the Fund.

Discussion
Mr T Beyleveldt (DA, Western Cape) asked what progress had been made in resolving the issues concerning the alignment of magisterial boundaries with municipal boundaries.  He asked what assistance was provided to municipal courts to clear the backlog of bylaw cases.

Dr De Wee replied that there were difficulties in signing memoranda of understanding and service level agreements with municipalities.  He offered to provide a detailed report to the Committee on the matter of the boundaries.

Adv Du Rand advised that the municipalities had requested the establishment of special courts dedicated to hearing cases concerning bylaws.  The Department was considering the request and had provided assistance to the courts in the Western Cape.  A lack of capacity was identified as a constraint.  The Department was in the process of developing the policy on magisterial boundaries.

Mr A Matila (ANC, Gauteng) referred to the objective of the Department to increase access to justice in the rural areas and townships.  He recalled that there had been plans to build a court in Mamelodi and funds were allocated but had been unable to find out why the project had not been implemented.  He was concerned about the distances people had to travel to the courts and the heavy case loads of magistrates caused by a lack of resources.  As a result, many cases were postponed.  The President had urged all Government departments to fill vacant positions and he wanted to know why the Department still had a high vacancy rate.

Mr L Nzimande (ANC, KwaZulu Natal) asked if it was explained to beneficiaries of the Guardian’s Fund when payments would cease.  He wanted to know if all the problems experienced by the Fund had been resolved.  He asked what progress had been made to establish a High Court in Mpumalanga.  He asked if the issues concerning access to the High Court in Grahamstown had been resolved.  He asked if the Department could provide a breakdown of the 500 Equality Court cases as the efficacy of this court had been questioned.  He stated that persons with disabilities continued to experience major difficulties in accessing justice.  He wanted to know what financial support was provided for Legal Aid South Africa and if the services provided would be expanded.

Mr B Nesi (ANC, Eastern Cape) noted that there were few women in the delegation from the DOJCD.  He asked what plans were in place to increase the number of women in the Department.  He asked if court proceedings were held in the local languages to implement the programme to rationalise the courts.

Dr De Wee replied that the plans to establish a court in Mamelodi had to be cancelled because of the budget cuts imposed on the Department.  The substantial increase in electricity tariffs by ESKOM also had a severe detrimental effect on the budget of the Department.  The DOJCD had established courts in rural areas to improve the access to justice.

Mr Matila interrupted Dr De Wee and said that there was no balance between the funds spent on the courts in urban areas (for example Pretoria Central) and the money spent on facilities in the rural areas.  The budget for the Mamelodi court had been approved prior to the budget cuts.  He asked what the rationale was for the mobile courts in rural areas as people living in those areas were just as much victims of crime.

Dr De Wee replied that courts were provided in rural areas, for example Ashton, Colesberg and Lutzville.  Increased migration to the urban centres had resulted in increased pressure in the cities as well, for example the facilities in South Gauteng and the Supreme Court in Bloemfontein were no longer adequate.  The lack of funding was a major challenge and the Department was not in a position to provide all the facilities necessary.  Projects had to be prioritised and certain programmes had to be cancelled.  The DOJCD had reduced the vacancy rate from 13% in 2008/09 to 10% in 2009/10.  The current vacancy rate was 9%.  The Department had a plan in place to fill the remaining vacant positions.  The Director-General had made the improvement in the gender and disabled representation of the Department a priority, despite the challenges experienced.

Adv Du Rand replied that the use of local languages in court proceedings was introduced as a pilot project in 2009.  Currently, the local language was used in 31 district courts.  The Department was developing a policy in the use of foreign language interpreters, which had become a major issue in South African courts.  For example, 60% of the cases heard in the Roodepoort court involved foreign nationals and required interpreters.  The experience gained during the 2010 FIFA Soccer World Cup had been useful.  Plans to establish the court in Mpumalanga were at an advanced stage.  During the first phase, premises were leased for a period of five years and occupancy was expected later in 2011.  The plans for the construction of the court had been finalised and the tender process would commence in the near future.  Construction was expected to commence in 2012/13.  A report would be submitted to the Committee on the alignment of the boundaries of the lower courts with municipal boundaries.

Adv Du Rand agreed that the matter concerning the Grahamstown court could have been handled with more sensitivity.  The Minister had visited the court and had held talks with the Chief Justice of the Eastern Cape.  He anticipated that the Minister would make an announcement in his budget vote speech.  The focus of the Department was to improve access to justice in the rural areas and most of the smaller courts were situated in these areas.  He undertook to provide a breakdown of the cases before the Equality Court to the Committee.

Adv Rudman added that the provisions for the rationalisation of the High Court were included in the Superior Courts Bill, which had been approved by the Cabinet and was currently with the State Law Advisers.  The matters concerning the Mpumalanga court were dealt with in the Traditional Matters Amendment Bill, submitted to the Cabinet for approval on 16 February 2011.

Adv Basson responded to the questions on the Guardian’s Fund.  He advised that the previous manual system had been replaced by an electronic system and information was currently immediately available to beneficiaries.  The Office of the Master had initiated a public awareness campaign, which focused on improving communication with the beneficiaries of the Fund.  The Fund had been targeted by syndicates with the intention to defraud and it was necessary to remain vigilant and detect any future fraudulent activities.  The Fund had recruited people to assist with the tracing of beneficiaries and the completion of documents.  The Office of the Master worked closely with the Department of Home Affairs to identify and verify the identity of beneficiaries.  In Pietermaritzburg, the Fund paid R20 million to R25 million per month to 1,000 beneficiaries.  A substantial amount of money flowed through the Guardian’s Fund and the Office of the Master was focused on improving efficiency and communication.  The action taken to address the qualified audit opinions and disclaimers in previous years had been successful.

Mr Johnson said that the Legal Aid Board had an excellent financial record.  The Legal Aid budget would be increased to R1.3 billion.  Matters had improved since the compensation paid to personnel had improved and parity with the salaries paid by the DOJCD was introduced.  An additional staff budget of R40 million in 2012/13 would allow the appointment of an additional 60 Legal Aid practitioners.  He suggested that the Legal Aid Board briefed the Committee on the plans to deploy the additional personnel.

Adv Du Rand added that there were currently 64 Legal Aid justice centres plus 64 satellite offices located throughout the country.  Legal Aid services were available at most courts.  The National Treasury had made additional funds available to address the backlog in appointments.  Legal Aid had received unqualified audit reports for nine consecutive years.

The Chairperson asked if the DOJCD had a strategy in place to fill vacancies for submission to the Planning Department.

Dr De Wee replied that the recruitment of financial management personnel was a priority to ensure that all funds were properly accounted for.  There was insufficient staff to reconcile the money handled by courts on a daily basis.  In addition, the capacity at magistrates’ courts needed to be strengthened.  Reliance on the Department of Public Works to maintain court infrastructure had to be reduced.  Assistance was required to collate information and compile statistical data.  The achievement of gender and disabled employment targets was a priority.

Mr Matila was pleased to hear that the employment equity issue was being addressed by the Department.  He asked what role was played by the Magistrates’ Commission.  He asked that the actual number of vacancies rather than a percentage was provided in future.

Mr Nzimande asked when the vacancy for the Chief Master would be filled.  He wanted to know what progress had been made in filling the vacant posts for magistrates in the Northern Cape Province.

Dr De Wee replied that the Chief Master post had been advertised.  Although applicants had been interviewed, there had not been any suitable candidates.  He anticipated that the position would be filled by March 2011.

Mr Du Rand advised that the Magistrates’ Commission was engaged in finalising the planning process for the rationalisation of district and regional courts and reducing the workload of magistrates.  Discussions had been held with the relevant role players.  He undertook to investigate the situation in the Northern Cape and report back to he Committee.  He said that the criteria applicable to employment equity targets were taken into account when making new appointments.  There were currently 662 female and 423 male employees in the Office of the Master.  A similar trend was encouraged in the rest of the Department.

Mr Johnson advised that the DOJCD currently employed 17,402 personnel (excluding judges and magistrates).  The 9% vacancy rate equated to approximately 1,560 posts.

The Chairperson thanked the Department for the input provided.  He gave the assurance that the Committee would take the challenges faced by the DOJCD into consideration when carrying out its oversight responsibilities.  He urged the Department to address the concerns raised by the Members with regard to the gender and persons with disability employment targets.

The meeting was adjourned.