National Youth Development Agency performance report April-Dec 2010 and its response to State of Nation Address, with Deputy Minister in attendance

Meeting report

Introduction
Ms M Tlake (ANC, Whip) apologised for the absence of the Chairperson, Ms D Ramodibe (ANC) who was attending a conference together with the Minister. Ms Tlake was elected Acting Chairperson and officially opened the meeting and welcomed the Members and the National Youth Development Agency (NYDA) delegation.

Ms D Robinson (DA) asked how the Portfolio Committee on Women, Youth, Children and People with Disabilities (the Committee) could interrogate and hold the NYDA accountable, when the Committee did not have the mandate to do so. There should be a special Presidential Portfolio Committee to interrogate all matters which fell under the Presidency. She asked why the Presidency did not have a Committee with oversight of its work.

Mr D Kekana (ANC) said that this question had been addressed before and was complicated. Owing to the high youth unemployment rate, the NYDA was located directly under the Presidency and since it did not have a Portfolio Committee of its own, currently the Committee was responsible for oversight.

The Acting Chairperson said that a letter dated 07 February 2011 addressed to the Minister in the Presidency for Performance Monitoring and Evaluation, the Hon. Collins Chabane, from the Committee kindly requested the NYDA to report to the Committee on its quarterly performance reports and its response to the State of the Nation Address. The NYDA had been formally invited to Parliament by the Committee itself and that meant it was invited by all Members of the Committee.

Ms P Duncan (DA) said that with due respect the DA’s intent was not to call for a debate but to excuse itself from the meeting.
 
Ms A Mda (COPE) said that the issues raised had nothing to do with youth development. It was disrespectful to discuss matters of the past when the Committee had clearly summoned an institution of Government to report to Parliament.

Ms Robinson said that while she acknowledged the issues of the youth organisations in the past, in the new dispensation the Committee did not have the mandate to interrogate the work of the NYDA.

Ms Duncan said that on a point of order she loved her committee work and, with due respect, as directed by their party and, after explaining the reasons why, the DA Members would like to leave the meeting, with respect, until further notice.

The Acting Chairperson asked the DA Members to wait and listen to the other Members.

Ms G Tseke (ANC) said that she was shocked that the Members of the DA were leaving the meeting as the programme adopted the previous year had included engaging with the entity of the NYDA.

The Hon. Ms Dinah Pule: Deputy Minister in the Presidency for Performance Monitoring and Evaluation said that it was unfortunate that the Committee debated issues of Parliament in front of the Presidency and NYDA.

The Chairperson said that, because of the position of their party, the Members of the DA could recuse themselves.

The Members of the DA left the meeting.

The National Youth Development Agency (NYDA) on its quarterly performance reports from April to December 2010/11
Mr Steven Ngubeni, Chief Executive Officer: National Youth Development Agency, said that the Corporate Plan for 2010/11 had previously been submitted to the Committee and included the detailed analysis of the eight Key Performance Areas (KPAs): indicators, targets and reasons for variance for quarters 1, 2 and 3 ending December 2010 which had been submitted to National Treasury. (See handout for tabled reports.)

The eight KPAs were:
Economic Participation
Education and Skills Development
National Youth Service
Social Cohesion
Information and Communications
Policy, Lobby and Advocacy
Research, Monitoring and Evaluation
Effective and Efficient Management Resources

Mr Michael Mashinini, Acting Chief Financial Officer: National Youth Development Agency, described the financial results in relation to the quarterly reports ending December 2010. The overall financial results from a total income perspective were 5% below budget. The majority of income was the interest of R19.9 million from the loan book collected from debtors. The total expenses were 22% below budget but internal and external audit services were expected to increase expenditure figures in the last quarter. Progress Fund Repayment was a partnership with First National Bank (FNB) which had boosted NYDA cash resources with R7.8 million by the end of the third quarter.

National Youth Development Agency (NYDA)'s response to the State of the Nation Address
Ms Daphney Chuma, Director: Internal and Public Sector Communications; NYDA, presented on the NYDA's response to the 2011 State of the Nation Address regarding job creation and plans for the 2011 Financial Year. NYDA’s plan for young people and targets were limited to the allocation received by National Treasury.
The NYDA would create in excess of 26 984 jobs for the youth and issue in excess of 35 000 micro -loans to youth through out the country. The NYDA Youth Bank project would be established and the National Youth Service (NYS) Programmes with provincial and local government would be implemented with 000 young participating; 44 000 youth would participate in their communities through NYDA funded projects; the Sanitary Towel Distribution Programme would be implemented; consultative processes and programmes specifically aimed at persons with disability would be initiated; and 2 000 young people will be engaged in the matric re-write project.

A skilled and capable workforce to support an inclusive growth path would include:
Provision of technical skills training to 500 youth
Provision of job preparedness training to 11000 youth
Provision of life skills training to 11 000 youth
Enrolment of 200 youth in the Youth Build South Africa projects
Training of 10 000 youth in the entrepreneurial and business management skills
Training of 300 youth in the Buy Youth Campaign. 
Entrepreneurship and business management skills to 20 000 young people.

NYDA would increase its access points through out the country by establishing provincial and regional offices: nine NYDA Provincial Offices would be established in partnership with provinces and Premier’s offices; the NYDA would continue to provide its full suite of products and services; continue to champion the course for youth development; ensure the participation of  500 entrepreneurs in social entrepreneurship interventions; and mobilise youth within 30 local municipal level to participate in the local government elections.

National Youth Development Agency (NYDA)'s update on status of its Provincial Advisory Boards
Mr Ngubeni said that one of the items of the Corporate Plan was the establishment of the Provincial Advisory Boards (PABs). These were an extension of the NYDA Board and would report directly to the NYDA Board – they provided additional capacity to the Board, enabling reach all provinces and did not have any fiduciary or autonomous status as this was assigned to the NYDA Board by the NYDA Act, nor would they be involved in the operations of the NYDA as these were the responsibility of the CEO and the officials.

Each province had a PAB and each PAB consisted of seven members, two of whom were full time and the rest were part time. The 18 full time members would constitute a National Board Committee which would be chaired by an NYDA National Board member and have its own charter as with other board committees. The PABs would act on an advisory capacity to the NYDA Board on matters pertaining to youth development in the respective provinces. (Refer to handout for detail on roles and responsibilities of PABs.)

Discussion
The Acting Chairperson said that the NYDA had responded comprehensively on the progress and expenditure trends, information on the Advisory Boards and the responses to the State of the Nation Address.

Mr Kekana said that in the midst of the global economic decline, South Africa had formed new alliances with South America, India and China and paved its own way in economic development. The issue of debt collection would not be a problem if skills were in line with the economy. Focus on textile, manufacturing, mining and production skills and assistance with opening small factories to use these skills would empower young individuals in line with the economy needs of the country.

Mr Ngubeni said that due to the economic needs, NYDA had no choice but to focus on creating a job force in line with those needs. Currently 500 youth were being interviewed in four provinces to be trained as welders, plumbers, boiler makers, carpentry and so forth.

Mr Kekane asked if the NYDA had offices in all the provinces and if they functioned properly.

Mr Andile Lungisa, Executive Chairperson: National Youth Development Agency, replied that NYDA had offices in almost all provinces, but NYDA's plan, which was based on the current legislation, was to offer services to the youth at each and every municipality. This would take a number of years and the impact hoped to create a paradigm shift. The funding of NYDAs new mandate was not sufficient. A number of programmes had been initiated with private stakeholders and detail thereof would be included in the next report given to the Committee.

Ms M Nxumalo (ANC) asked what marketing mechanism was used to ensure that the youth in informal settlements were aware that they could go to NYDA Offices to get advice.

Mr Ngubeni said that NYDA was implementing projects to respond to the needs of informal settlements areas.

Mr Kekane also asked if Sector Education and Training Authorities (SETAs) had been explored as an option for skills development.

Mr Ngubeni replied that some SETAs were going into partnership with NYDA and, at institutions which were accredited by SETA - where NYDA trained the youth using the NYDA budget, SETA was paying NYDA back. However the reason why the matric re-write project had been reduced from 5 000 to 2 000 participants was because SETA’s mandate was not to pay for matriculants. NYDA was trying to encourage SETAs to understand that matriculants were necessary to feed the programmes and projects.

Ms P Peterson-Maduna (ANC) asked how NYDA was managing loans and how sustainable those loans were.

Mr Ngubeni replied that the loans management and sustainability had been partly covered in the portfolio at risk matter.

Mr Mishishini said that when a loan was not performing, the investment officers liaised with the counterpart with whom the account was issued to pay back the outstanding amount or extend the period for recovery of the amount. In some cases, the matter would be forwarded to the legal team to ensure that collection was occurring as that money was needed to inject into other projects and also affected the portfolio at risk.

The Acting Chairperson asked if the students in their final year who were performing well had to pay back their student loans.

Mr Ngubeni explained that a University loan which was registered in the first year would be reflected as a bursary in the final year if the student passed well.

Ms Peterson-Maduna asked for future statistics to distinguish between females, males and persons with disability enrolled in youth programmes.

Mr Ngubeni replied that the matter, as well as the need to break down statistics in terms of provinces, was raised in a previous meeting with the Committee. By the next financial year, statistics would be reflected both provincially and in terms of gender and people with disabilities.

Ms Peterson-Maduna asked if the 13 young people had been identified for the Turkey scholarship and how they were identified.

Mr Ngubeni said that the 13 young people had been identified and were currently representing South Africa in Turkey. The criteria were set according to certain calibre requirements stipulated by the Turkish Government, which was funding the project for the university in Turkey. Candidates were taken from all over South Africa.

Ms I Ditshetelo (ANC) asked what the difference was between the 2010/11 targets of R10 million funding and opportunities accessed and the R20 million business opportunities sourced.

Mr Ngubeni replied that the R10 million accessed related to loans given to youth businesses and the other related to the actual business income opportunity after being granted a voucher through the NYDA.

Ms Ditshetelo asked if the 26 984 job opportunities were within the Expanded Public Works Programme.

Ms Chuma said that the jobs for the next financial year would be created by small and medium enterprise (SME), micro-funding and business support programmes sourced through the NYDA.

Ms Ditshetelo asked what measures NYDA had taken to address the recommendations made by the Auditor-General in the 2009/10 report.

Mr Ngubeni replied that the recommendations were considered on a quarterly basis by the Internal Audit Committee and progress could be presented to the Committee.

The Acting Chairperson asked what the rationale was for having different targets for the first and last quarter.

Mr Ngubeni said that the reason for the changes was NYDA’s response to the Auditor-General's recommendations, which included the need to revise targets so that they were measurable, simple, real and binding.

Ms Ditshetelo asked what the cost and outcome was of the 13-21 December 2010 Youth Festival.

Mr Lungisa replied that the report on the Youth Festival could not be divulged at the current time. The issue had been in the media and would be tabled in the last quarter and then discussed with the Committee. [Part of his response was inaudible.]

Ms Ditshetelo asked what criteria were used for deciding where the 100 bicycles would go.

Mr Ngubeni replied that there was no formal programme for donation of the 100 bicycles to schools. Where there was no scholar transport and children had to walk long distances, NYDA saw the need to intervene. The Department of Transport was being encouraged to assist in this regard.
 
Mr G Mokoro (ANC) asked for the basis on which NYDA made decisions on how many young people would be enrolled for specific projects, recent job creation and loans awarded.

Ms Mda suggested that the areas where targets were not achieved should be intensified and attained as speedily as possible as they were affecting the youth. She asked for clarification on how the 749 young people in business were being mentored, how young people and institutions or companies were identified, what intervention methods were used, what costs were incurred and how, in terms of personnel, these services were capacitated.

The above two Members’ questions were not answered in the meeting.

Ms Mda asked when NYDA envisaged submitting the Youth Development Strategy Final Draft for approval by Cabinet and when the Committee could engage with the Draft.

Mr Lungisa said that the mandate for NYDA under the Presidency was to develop an Integrated Youth Strategy for South Africa. As indicated in the report, the process had been started internally and in March 2011, NYDA would engage on the Youth Development Strategy Draft with all youth organizations in all nine provinces and thereafter submitted to Cabinet for approval in June. The strategy would emphasize skills development, as in the past NYDA did not have the adequate funds to do this. Each of 22 SETAs had committed over R2 million for matric programmes the previous year, but the problem was that at the time of collection, the funds were not released. Young people constituted more than 42% of the population and NYDA had to move fast to employ them. Another problem was that in the past SETAs had focused on short learnership programmes for which the young person received no qualifications. NYDA would make more of a direct call to the Committee regarding the target and budget for skills development. 
 
Support from the Committee was required with regard to fast tracking the amendment of Section 75 and Section 76 in the NYDA Act. The current Act had gaps and the youth was impatient and needed support.

Mr Kekane suggested that since NYDA was in the Office of the Presidency, it should consult with the Minister of Labour to fast track collection of money from SETAs. He also encouraged NYDA to provide both international and national programmes to motivate and mobilize the youth. International programmes had operated in the past and possibly only needed to be revised.

Ms Mda asked if the responsibility of the Provincial Advisory Board in the NYDA was advisory only and how the two institutions would interact.

This question was not answered in the meeting.

Ms Mda said that the Members were in agreement that the operational budget was inadequate. She added that NYDA should address education-focused programmes beyond the re-write programme; encourage skills development in the field of sport and the creative industry such as those offered leading up to the 2010 World Cup; in the next meeting with the Committee the NYDA should be able to describe how Government Learnership Internships ensured that the trained youth did not return to re-join the unemployed youth. The NYDA should also provide an audit of the previous NYS volunteers and explain how they were integrated and registered with the new NYDA undertaking.

Mr Ngubeni thanked the Committee for its input and encouraged participation particularly in relation to the Youth Development Projects.

The Deputy Minister in the Presidency added that the Presidency was working on the budget with National Treasury and thanked the Members for their contributions.

The Acting Chairperson commended the NYDA for its growth and achievements and said that the Committee wished to see the results not only at National level but at grass roots level. Partnership with NYDA was important in terms of Parliament's addressing constituencies where the youth needed to be informed of the NYDA activities. At times the Committee would request NYDA to assist with giving informative presentations to the youth on relevant matters.

The meeting was adjourned.