Department of Transport on its 2012/13 Annual Report

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Transport

09 October 2013
Chairperson: Ms N Bhengu (ANC)
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Meeting Summary

The Department of Transport (DoT) presented its 2012/13 Annual Report to the Portfolio Committee on Transport. The presentation focused on four themes; namely Programme Performance Report for 2012/13, Audit Outcomes for 2012/13, Highlights of 2012/13 Financial Statements, as well as Human Resource Management and Development. DoT’s programme performance related to DoT outcomes and highlights of the performance of DoT per outcome and programme. The performance analysis indicated that while some targets were achieved, some were in progress and others were not achieved. Part of DoT’s achievement for the financial year under review was the development and presentation to the Cabinet for approval of the National Transport Master Plan 2005-2050 (NATMAP) synopsis report, and the successful refurbishment and upgrading of the Mthatha Airport. DoT was also taken steps in dealing with issues around the alarming rate of road accident in South Africa as the Draft Road Safety Strategy had been completed and the Road Asset Management Policy which would help in quantifying and analysing the requirements of the road networks in South Africa had been developed. Funding was made available to 21 Rural District Municipalities to establish Road Asset Management Systems for standardised collection of road inventory data, including condition assessment and traffic data. The draft road Accident Benefit Scheme policy had been finalized following consideration of public comments. Cabinet had also approved the feasibility study on the PRASA Rolling Stock Renewal Programme, while Gibela Rail transport Consortium was announced as the preferred bidder for the design, manufacture and supply of the PRASA new rolling stock fleet. South Africa also passed the Aviation security audit conducted by the Federal Aviation Administration (FAA) of the United States of America. There was also the continuation of the development of the integrated public transport systems, including the bus rapid transit networks and empowerment. However, 6457 taxis were scrapped in the taxi recapitalization project and the Public Transport conflict resolution strategy had been developed. In terms of legislation, four pieces of legislation were tabled in the Parliament, and these were the Road Accident Fund Act 2012, South African Maritime and Aeronautical Search and Rescue Amendment Bill, Transport Laws and Related Amendment Bill and Merchant Shipping Safe Containers Act 2011.

Highlights of the performance of DoT per programme indicated a significant improvement compared to previous years. The targets that were achieved in the Integrated Transport Planning programme related to the development of a sustainable transport information portal that is accessible for all tiers of government for DoT, development of a rural accessibility or multi-deprivation index, development of a transport and sector monitoring and evaluation framework, the approval of the NATMAP by the Cabinet, the consolidation of the transport system data Bank user requirements framework, the development of Durban – Free State – Gauteng logistics and industrial corridor institutional framework, the development of key centres of production to support key rural economic nodes, the development of rural-specific indicators and targets to monitor freight performance within the Integrated Development Planning (IDPs) and ITPs, and the identification and development of strategic rural freight logistics infrastructure. Under the Rail Transport Programme, most targets under the Rail Infrastructure and Industry Development sub-programme were achieved as about 450 rail coaches had been completed, five out of six sections of the Phase 1 of Gauteng Train Control Nerve Centre had been completed, the feasibility of the Moloto Development Corridor had been done, budget for the procurement of the new rolling stock had been approved, while the construction of stations and perway under the Greenview – Pienarsport line extension was 50 per cent completed. There were five sub-programmes under the Road Transport programme and the programme generally recorded mixed results in terms of achievement. All of the targets under the Road Regulation sub-programme were not achieved and this related to the reduction of fatalities on road, the implementation of periodic motor vehicle testing and motor vehicle standards, the facilitation of the implementation of the Administrative Adjudication of Road Traffic Offences (AARTO). Under the Road Engineering Standards sub-programme, targets such as the review and or revision of the critical technical standards specifically the digitization of road traffic signs manual and the development of the road infrastructure safety framework was achieved, while the aim of developing road asset management policy and guidelines was not achieved. The Road Infrastructure and Industry Development sub-programme achieved two of its four targets as the target set for the both the rehabilitation of roads as well as the maintenance of South Africa’s roads in kilometers were not met.

The Civil Aviation programme achieved 12 out of its 18 objectives. The objectives that were not achieved related to the review of the airlift strategy, negotiation and review of bilateral air services agreements, liberalization of air services frameworks at Sothern Africa Development Corporation (SADC), review of regulatory framework for Air Traffic and Navigation Services (ATNS) and Airports Company of South Africa (ACSA), forecast and planning framework and the management of permission application process for ACSA and ATNS. The Civil Aviation programme objectives that were achieved in terms of meeting the targets set included among others the facilitation of an effective representation of south Africa at SADC, Africa and the civil aviation for a, promulgation of regulations on aviation safety, promulgation of regulations on aviation security, establishment of the Aviation Appeals Committee, facilitation of the Aviation Security Audit, review of the National Security Programme (NASP). The Maritime programme however had 18 objectives out of which 11 objectives were achieved. Some of the objectives achieved included among others, the preparation of a position paper on the trends in port efficiencies, operations and management, the evaluation of the implementation of Ports Act and proposed amendments, the development of a green paper on Maritime Shipping Policy, awareness campaigns on International Ship and Port Facility Security Code (ISPS Code), and the promotion of career awareness in maritime transport sector. Under the Public Transport Programme, Five objectives out of the 15 objectives across the sub-programmes of the Public Transport programme were not achieved and these were found in the Public Transport Regulation sub-programme, Public Transport Network Development sub-programme, and Rural Scholar Transport sub-programme.

DoT’s audit outcomes was an indication that the Department had made significant improvement in terms of its audit outcomes especially relating to the drivers of internal control that were leadership, financial and performance management as well as governance. Also, the audit opinion for DoT was unqualified with emphasis of the matter. The emphasis of the matter related to a lawsuit in which DoT was a defendant and this concerned the extension of a contract, as well as the R704 million expenses incurred on E-Natis and this had been included in debtors and possibility of recovering the amount was uncertain. There were no material finding concerning the usefulness and reliability of information and a total 47 per cent of planned targets were not achieved.

The Department also noted that there had been improvements in terms of Human Resources Management and Development but there were also persisting challenges. A total number of 773 posts was available at DoT out of which 566 posts had been filled, and this implied a 26.78 per cent vacancy rate. Some DoT staff had also left the Department but the total number of employees who left as a percentage of the total employment as at 1st of April 2012 was 9.96 per cent. In terms of employment equity, 252 employees of DoT were male, while 314 DoT employees were female. At the senior managerial level however, 66 employees were men and 40 were women. The DoT was thus giving priority to female applicants in the filling of the vacant posts at the senior managerial level.

The Department also expanded on the highlights of it Financial Statement for 2012/13, and these included the analyses of expenditure, major under (over) expenditure, transfer payments, shifted or reprioritised funds as well as requested rollovers. The sum of R39.6 billion was the budgetary allocation of the Department of Transport in the 2012/13 fiscal year but the percentage of funds spent as a proportion of the total budget allocation was 91.2 per cent. The total money spent at the end of the fourth quarter was R39.3 billion and this left a variance of R319 million as savings and under expenditure. Under spending was recorded in all of DoT’s programmes and some funds were also shifted or reprioritised after adjusted budget with the most prominent being the sum of R450 million shifted from transfer payments to goods and services, specifically Mthatha Airport. Various programmes that under spent had requested for partial or full rollovers of funds they did not utilise and the total sum of the rollovers requested across programmes amounted to R187.9 million. Out of all the rollovers requested however, the amount under spent in the Mthatha Airport refurbishment under the Civil Aviation Programme was the only fund approved as rollover to the DoT for the next financial year.

Members commended the comprehensiveness of DoT’s presentation. They however expressed concern about the inadequate attention being given to rural transport infrastructure and the National Scholar Transport initiative. Members inquired about specific places where rural transport infrastructure had been put in place. Members also frowned at the contestation by different government departments over the contracting rights to the National Scholar Transport initiative as they believed the initiative was a transport issue aimed at improving access to schools for South Africa’s students. The rationale for qualifying a job provided for six months as a full time job under the notion of Full Time Equivalent (FTE) was also questioned as Members believed that this was not solving South Africa’s employment conundrum. Members expressed concern on the process for obtaining airworthiness for aircrafts as they noted that the process was cumbersome. The Department was also strongly advised by the Committee to tighten its internal control mechanisms on other entities under its coordination.

Meeting report

Opening Remarks
The Chairperson welcomed everyone present for the session with the Department of Transport (DoT), stating that the engagement was important in order to reflect on the achievements and challenges of the transport sector. She noted that the role and responsibility of the Department in terms of government’s focus on service delivery provision could not be overstated. The Committee was always concerned about the impact of expenditures on communities. The impact of the absence of transport infrastructure could not be directly measured like education and health and this served as a justification for a coordinated approach to service delivery such as the experience of the 2010 World Cup. The Committee made an oversight visit to the Passenger Rail Agency of South Africa (PRASA) to see how funds for infrastructure development was being utilised. The Committee’s visit to China also led to a preparation of a report which recommended the need to build the capacity of the state to develop and manage transport infrastructure and this recommendation was also reflected in the National Development Plan (NDP). It was a fact that PRASA would always look towards the private sector for rail infrastructure as long as the quality of work done by Transnet could not meet PRASA’s expectations. She asked if DoT had looked into the report that came out of the Committee’s visit to China.

Mr Mawethu Vilana, Acting Director General, DoT, replied that the Department had not read the report but would do so and attempt an analysis of the report.

Ms R Motsepe (ANC) remarked that the failure of the DoT to consider the report was disappointing as it gave an impression that the Committee only went to China for pleasure.

The Chairperson also expressed her displeasure noting that it was not good enough. She invited DoT to present its Annual report and financial statements for the 2012/13 financial year.
Briefing by Department of Transport briefing on 2012/13 Annual Report
Mr Vilana stated that the presentation would focus on four themes, namely Programme Performance Report for 2012/13, Audit Outcomes for 2012/13, Highlights of 2012/13 Financial Statements, as well as Human Resource Management and Development. The Programme Performance highlighted the outcomes and the performance of the Department per outcome and programme. DoT’s first outcome was an effective and integrated infrastructure network that served as catalyst for social and economic development, and this related to the important potential role of DoT in South Africa’s economy. Outcome 2 related to having a safe and secure transport sector while outcome 3 focused on improved rural access, infrastructure and mobility. Outcomes 4, 5 and 6 respectively related to improved public transport system, increased contribution to job creation, and increased contribution of transport to environmental protection. DoT was also conscious and working towards responding to the five key priorities of the government which were health, education, rural development, creation of decent jobs and crime.

Mr Vilana highlighted the performance, noting that while a number of targets were achieved, some were in progress and others were not achieved. The National Transport Master Plan 2005-2050 (NATMAP) synopsis report was developed and presented to the Cabinet for approval and the Mthatha Airport had been successfully refurbished and upgraded. DoT had taken steps in dealing with issues around the alarming rate of road accidents in South Africa. The Draft Road Safety Strategy had been completed. The Road Asset Management Policy, which would help in quantifying and analysing the requirements of the road networks in South Africa, had been developed. Funding was made available to 21 Rural District Municipalities to establish road Asset Management Systems for standardized collection of road inventory data, including condition assessment and traffic data. The draft road Accident Benefit Scheme policy had been finalised following the consideration of public comments. Cabinet had also approved the feasibility study on the PRASA Rolling Stock Renewal Programme, while Gibela Rail transport Consortium was announced as the preferred bidder for the design, manufacture and supply of the PRASA new rolling stock fleet. South Africa also passed the Aviation security audit conducted by the Federal Aviation Administration (FAA) of the United States of America. The Kwazulu-Natal and Eastern Cape ports had been successfully audited for security as per the International Ship and Port Facility Security Code (ISPS code) while the World Maritime Day was successfully hosted in the Eastern Cape, exposing the youth to career opportunities in Maritime sector. DoT also hosted the International Civil aviation Day on 7th December 2012, which afforded the youth from rural areas some exposure on career opportunities in civil aviation. The development of the National Airports Development Plan was progressing as planned and the Inland Waterways Strategy had been introduced to the Small Vessels Committee of Stakeholders for adoption. There was also the continuation of the development of the integrated public transport systems, including the bus rapid transit networks and empowerment. However, 6457 taxis were scrapped in the taxi recapitalisation project and the Public Transport conflict resolution strategy had been developed. In terms of legislation, four pieces of legislation were tabled in the Parliament. These were the Road Accident Fund Act 2012, South African Maritime and Aeronautical Search and Rescue Amendment Bill, Transport Laws and Related Amendment Bill and Merchant Shipping Safe Containers Act 2011.

The Department expanded on the performances of the different programmes under its portfolio, and these programmes comprised Integrated Transport Planning (ITP), Rail Transport, Road Transport, Aviation, Maritime and Public Transport. Mr Vilani noted that in terms of its own analysis a target would be noted to have been achieved if it was at least 80 % done and a lesser figure would indicate that the target was not achieved. The targets that were achieved in the ITP programme related to the development of a sustainable transport information portal that was accessible for all tiers of government for DoT, development of a rural accessibility or multi-deprivation index, development of a transport and sector monitoring and evaluation framework, the approval of the NATMAP by the Cabinet, the consolidation of the transport system data Bank user requirements framework, the development of Durban – Free State – Gauteng logistics and industrial corridor institutional framework, the development of key centres of production to support key rural economic nodes, the development of rural-specific indicators and targets to monitor freight performance within the Integrated Development Planning (IDPs) and ITPs, and the identification and development of strategic rural freight logistics infrastructure. The Economic Analysis and Modelling sub-programme under the ITP recorded significant achievements as targets such as the preparation of the modeling and macro economic analysis reports, implementation of Integrated Transport B-BBEE Codes, establishment of a Single Transport Economic Regulator (STER), conduct of a national household travel survey transport statistics for 2011 were all achieved, while the development of funding models was partly achieved. The DoT’s targets that were not achieved under the ITP programme included amongst others, the development of  a transport energy consumption framework for climate change mitigation, the development of transport greenhouse gas inventory, research on the impact of freight accidents on South Africa’s roads, review of transport innovation research strategy and research on main technologies and innovations to reduce road accidents in South Africa, updating of transport master planning framework, establishment of a national transport planning forum, development of a National Transport Infrastructure Planning Draft Bill, development of logistics hubs framework, development of a rural integrated transport plans. The targets under the regional integration sub-programme of the ITP were also not achieved.

Mr Vilana also highlighted the performance under the Rail Transport programme. He noted that most targets under the Rail Infrastructure and Industry Development sub-programme were achieved. About 450 rail coaches had been completed, five out of six sections of the Phase 1 of Gauteng Train Control Nerve Centre had been completed, the feasibility of the Moloto Development Corridor had been done, budget for the procurement of the new rolling stock had been approved, while the construction of stations and perway under the Greenview – Pienarsport line extension was 50 per cent completed. The targets that were not met under the Rail infrastructure and Industry Development sub-programme however related to the construction of stations and perway under the Bridge City line extension project. The key targets under the Rail Operations sub-programme was achieved as the financial year witnessed the development of a National Service Level Agreement between DoT and PRASA. In terms of the Rail Regulation sub-programme, only the aim of preparing an incident and accident status report was achieved while the targets of preparing a rail policy green paper and establishing the interim Rail Economic Regulator (IRER) were not achieved.

Mr Chris Hlabisa, Deputy Director-General: Road Transport, DoT, presented the performance update on the Road Transport programme. He remarked that there were five sub-programmes and the programme generally recorded mixed results in terms of achievement. All of the targets under the Road Regulation sub-programme were not achieved and this related to the reduction of fatalities on road, the implementation of periodic motor vehicle testing and motor vehicle standards, the facilitation of the implementation of the Administrative Adjudication of Road Traffic Offences (AARTO). Under the Road Engineering Standards sub-programme, targets such as the review and or revision of the critical technical standards specifically the digitisation of road traffic signs manual and the development of the road infrastructure safety framework was achieved, while the aim of developing road asset management policy and guidelines was not achieved. The Road Infrastructure and Industry Development sub-programme achieved two of its four targets as the target set for the both the rehabilitation of roads as well as the maintenance of South Africa’s roads in kilometers were not met. The intention under the sub-programme was to reseal about 7 484 303 square metres, re-gravel 2 793 kilometre, black-top patch 1 357 488 and blade 601156 kilometre of roads but all of these were not achieved. However the targets of improving rural access and mobility by assisting 21 district municipalities in developing non-motorised transport infrastructure by 2014 through the faciclitation of rural stakeholder forums and the development of database of schools and clinics requiring proper access roads, and creating full-time equivalent (FTEs) jobs were both achieved and 90 000 FTEs were eventually created. All of the targets under the Driving License Card Account and Road Entity Oversight sub-programmes were achieved.

Mr Zakhele Thwala, Deputy Director-General: Civil Aviation, DoT, gave the performance update of the Civil Aviation programme, noting that it achieved 12 out of its 18 objectives. The objectives that were not achieved related to the review of the airlift strategy, negotiation and review of bilateral air services agreements, liberalisation of air services frameworks at Sothern Africa Development Corporation (SADC), review of regulatory framework for Air Traffic and Navigation Services (ATNS) and Airports Company of South Africa (ACSA), forecast and planning framework and the management of permission application process for ACSA and ATNS. The Civil Aviation programme objectives that were achieved in terms of meeting the targets set were the facilitation of an effective representation of south Africa at SADC, Africa and the civil aviation for a, promulgation of regulations on aviation safety, promulgation of regulations on aviation security, establishment of the Aviation Appeals Committee, facilitation of the Aviation Security Audit, review of the National Security Programme (NASP), facilitation of the establishment of a One-stop aviation Security System within the SADC region, and the promotion of aviation awareness which targeted rural areas where it was discovered that science and mathematics teachers were sometime lacking. Other achievements were the development of the airport or airspace Slot Coordination Framework, the approval of strategic or corporate plans and annual performance plans (APPs) of three public entities annually, the approval of reports on analysis of quarterly reports against the APPs, as well as the preparation of reports on analysis of annual reports for the Annual General Meetings (AGMs).

Mr Thwala also presented the performance update of the Maritime programme, noting that it had achieved 11 out of its 18 objectives. The objectives that were not achieved included among others, the evaluation of the efficiency of freight logistics and cargo tracking, the development of an inland waterway strategy, the analysis of the audit rate of employment creation in maritime transport sector over the past three years, and the development of a business case for a coastal shipping line between Nqgura and Richard’s Bay. On the other hand, some of the objectives achieved included the preparation of a position paper on the trends in port efficiencies, operations and management, the evaluation of the implementation of Ports Act and proposed amendments, the development of a green paper on Maritime Shipping Policy, awareness campaigns on International Ship and Port Facility Security Code (ISPS Code), and the promotion of career awareness in maritime transport sector.

Mr Vilana also provided explanation on the achievement or non-achievement of targets set under the Public Transport programme. Five objectives out of the 15 objectives across the sub-programmes of the Public Transport programme were not achieved. The Public Transport Regulation sub-programme achieved one out of its three objectives and this related to the training and placing of interns in municipalities and district municipalities. The objectives to amend the National Land Transport Act (NLTA), and the determination of the number of interprovincial and tourism operating license applications processed were not achieved. All the objectives under the Public Transport Industry Development sub-programme were achieved and these included among others the development of systems to ensure full participation of small bus operators in the public transport operations, the management and monitoring of the taxi recapitalisation project. The Public Transport Network Development sub-programme however achieved two out of its four objectives. In the Rural Scholar Transport sub-programme, the achievement of the objective to develop a National Scholar Transport Policy and Framework was mixed. The Scholar Transportation framework inclusive of operating standards and safety guidelines had been developed but the Scholar transport policy had not been finalised and implemented due to the fact that stakeholders especially the Departments of Transport and Education were contesting the location of contracting authority. The remaining two objectives under the Rural Scholar Transport sub-programme were achieved as the rural transport strategy had been developed and a number of provinces had migrated scholar transport from education to transport departments.

Mr Vilana expanded on the audit outcomes, noting that the Department had significantly improved in terms of its audit outcomes especially relating to the drivers of internal control that were leadership, financial and performance management as well as governance. The analysis of the audit outcomes was done utilising the concept of the traffic light, with green indicative of a clean and desired state, yellow indicated an average performance, while red was indicative of poor performance. The overall movement from previous assessment in terms of leadership as a driver of internal control was positive. The DoT, in the previous year, was yellow in terms performance against objectives and compliance as it related to the provision of effective leadership but this had changed as DoT had moved to the green zone. DoT programmes such as Rail Transport, Road Transport, Civil Aviation and Maritime Transport had all moved to the green zone in terms of their financial, performance against objectives and compliance as it related to leadership as a driver of internal control. In terms of financial and performance management as a driver of internal control, DoT had improved significantly but there were still persisting problems around compliance as well as its review and monitoring using applicable laws and regulations. Governance as a driver of internal control had witnessed significant improvement as appropriate risk management activities were being implemented and there had been improvement in ensuring that there was an adequately resourced and functioning internal audit unit.

Mr Vilana indicated that the audit opinion was unqualified with emphasis of the matter. The emphasis of the matter related to a lawsuit in which DoT was a defendant and this concerned the extension of a contract, as well as the R704 million expenses incurred on E-Natis and this had been included in debtors and possibility of recovering the amount was uncertain. There were no material finding concerning the usefulness and reliability of information and a total 47% of planned targets were not achieved. Goods and services above R500 000 were procured without inviting competitive bids although this had been investigated and condoned by the National Treasury. There were also issues around irregular expenditure as the accounting office did not take effective and appropriate steps to prevent irregular expenditure and compliance with supply chain management prescripts was proving problematic. Issues relating to internal control particularly leadership posed some challenges as the report emphasized inadequate coordination and effective oversight over a major capital project as well as lack of effective human resource management to ensure that adequate and sufficiently skilled resources were put in place as positions in senior management were vacant for more than 12 months and not advertised within six months of vacancy.

Mr Vilana discussed the Human Resources Management and Development, indicating that there was a total number of 773 posts. Of those, only 566 posts had been filled, and this meant that the Department had a 26.78% vacancy rate. The number of posts per salary band indicated that lower skilled (levels 1-2), skilled (levels 3-5), highly skilled production (levels 6-8), highly skilled supervision (levels 9-12) and senior management (levels 13-16) respectively had 0, 64, 245, 317 and 147 posts at the DoT. However, the vacancy rates per salary band for lower skilled (levels 1-2), skilled (levels 3-5), highly skilled production (levels 6-8), highly skilled supervision (levels 9-12), and senior management (levels 13-16) salary bands were 0%, 17.19 %, 23.26 %, 31.23 % and 27.21 % respectively. Some staff had also left the Department and the reasons for this included death, resignation, expiration of contract, ill-health, retirement and transfers to other Public Service Departments which accounted for a significant number of departures from the DoT. However, the total number of employees who left as a percentage of the total employment as at 1st of April 2012 was 9.96 %. In terms of employment equity, 252 employees were male, while 314 employees were female. At the senior managerial level however, 66 employees were men and 40 were women. The DoT was thus giving priority to female in the filling of the vacant posts at the senior managerial level.

Mr Dan Pretorius, Chief Director: Financial Administration and Supply Chain Management, DoT, presented the highlights of the 2012/13 Financial Statement. This included the analyses of expenditure, major under (over) expenditure, transfer payments, shifted or reprioritised funds as well as requested rollovers. Mr Pretorius stated that the sum of R39.6 billion was the budgetary allocation in the 2012/13 fiscal year. The percentage of funds spent as a proportion of the total budget allocation was 91.2 %. The total money spent at the end of the fourth quarter was R39.3 billion. This left a variance of R319 million as savings and under expenditure. Expenditure was segregated into programmes with administration and integrated transport planning receiving R390.9 million and R110.1 million respectively. Rail transport, road transport, civil aviation, maritime transport and public transport were allocated R10.29 billion, R18.23 billion, R520 million, R137 million and R9.96 billion respectively.

Mr Pretorius further noted that PRASA got the highest allocation in terms the 2012/13 expenditure as about 26.01 % of the total expenditure went to the agency. The breakdown of other expenditure for 2012/13 indicated that the South Africa National Roads Agency (SANRAL), Provincial Roads Maintenance, Public Transport Infrastructure and Systems, Public Transport Operations, Goods and Services, Taxi Recapitalisation, Buildings and fixed structures, Compensation of Employees received, as a percentage of the total expenditure, 24.73 %, 20.3 %, 12.42 %, 10.98 %, 2.24 %, 1.03 %, 0.88 %and 0.73 % respectively. The remaining 0.68 %of the total expenditure went to other agencies, rural grant, non profit institutions, universities, foreign memberships, machinery and equipment, financial transactions as well as leave gratuity and sponsorships. It was important to note that Goods and Services, Compensation of Employees, machinery and equipment, financial transactions as well as leave gratuity and sponsorships were however internal expenditure of the DoT.

Mr Pretorius expanded on the Department’s projects where funds allocated were under (over) spent. A sum of R105.2 million was under spent under the Goods and Services appropriation. The Mthatha Airport project under spent a sum of R104.8 million on the airport’s refurbishment. The payment for the Public Transport Infrastructure and Systems to a city was stopped as a result of persistent under spending; hence a sum of R103.7 million was under spent on the project. The sum of R9.5 million was saved on additional funds allocated to remove the Seli 1 wreck. A number of projects were delayed after prioritising R49.5 million from the Taxi Recapitilisation transfer payment across Programmes during the year while a number of projects were delayed after prioritising R24.1 million from Office Accommodation. In terms of under or over expenditure per programme, the sums of R31.3 million, R6.6 million, R11 million, R1.3 million, R109 million, R12.4 million, R147.2 million was under spent under the Administration, Integrated Transport Planning, Rail Transport, Road Transport, Civil Aviation, Maritime Transport and Public Transport programmes respectively.

Mr Pretorius stated that funds were also shifted or reprioritised after adjusted budget. The sums of R17.7 million and R28.8 million were shifted from compensation of employees and taxi recapitalisation respectively, to goods and services to cover projects. The sum of R450 million was shifted from transfer payments to goods and services, specifically Mthatha Airport, while R14 million was shifted to the Road Traffic Infringements Agency. Funds were also shifted across programmes to administration and this was in the region of R57 million. Funds spent as a proportion of respective total allocations indicated that administration spent 92 percent of its allocation, while integrated transport planning spent 92.6 %. Correspondingly, rail transport, road transport, civil aviation, maritime transport and public transport spent 99.9 %, 100 %, 79.1 %, 92.0 % and 98.5 % of their respective allocations.

Mr Pretorius remarked that the various programmes that under spent had requested for partial or full rollovers of funds they did not utilise. In total, the programmes requested for a sum of R187.9 million as rollovers. The Administration programme requested for R30.73 million in rollover while the Integrated Transport Planning programme requested for a rollover of R1.5 million. The Rail Transport, Road Transport, Civil Aviation and Public Transport programmes also respectively requested for the sums of R8 million, R2.6 million, R112 million, and R33 million. Integrated transport planning requested for rollover of the funds designated for the development of a transport rural accessibility or multi-deprivation index, rail transport requested for rollover for the Moloto Development Corridor, while road transport asked for rollover for its project on investigations into the issuance of fraudulent roadworthy certificates. For public transport programme  which under spent on the Public Transport Infrastructure and Systems grant, the development of a Scholar Transport Framework, a migration plan for Scholar Transport as well as on the implementation of the ‘Shova Kalula’ (bicycle transport) programme in provinces, for rollovers in areas where funds were unspent or under spent were requested and these included the development of a national transport regulator, the implementation of the taxi recapitalisation 2020 strategy, the oversight of integrated rapid public transport networks, and the development of a national transport information systems. However, out of all the rollovers requested, the amount (R104.8 million) under spent in the Mthatha Airport refurbishment was the only fund approved as rollover to the DoT.

Discussion
Ms N Ngele (ANC) welcomed the Civil Aviation Day and awareness initiative as it would make a difference in the lives of the children in rural areas. She lamented the lack of Science and Mathematics teachers especially in the rural areas as this was denying the young people their dreams of becoming pilots, noting that the challenge must be addressed. Some people were also making money out of this lack by organising after school classes for the kids. The funding to 21 rural district municipalities to establish Road Asset Management Systems for collection of data might not be effective as adequate monitoring was lacking. She requested clarity on the meaning of FTE and the jobs it generated. Lastly, she asked how Outcome 3 would be achieved and an itemisation of the rural access DoT had improved.

Mr Vilana replied that DoT was expanding its role in terms of rural transport infrastructure. The Department was consolidating its role to attend to the deficit around rural transport infrastructure.

Mr Hlabisa added that the systems put in place were assisting the Department to capture the data relating to the 21 rural district municipalities. It was a given that the Department’s effort at assisting rural municipalities would be better enhanced if there was captured data as it would be able to approach the National Treasury with the facts captured. Rural transport infrastructure should be taken seriously and perhaps, there was a need to revisit the issue of Equitable Share Allocation. It was not enough to rely on the funds coming from the Provincial Road Maintenance Grant (PRMG) in addressing rural transport infrastructure. The DoT also noted that the monitoring and evaluation had not been happening and this was the justification for the recent clustering of provinces in order to address each cluster holistically.

Ms Ngele responded that DoT must give examples of what was being done at specific places the next time it reported to the Committee. It was difficult to believe if examples were not given of places where rural transport infrastructure had been put in place.

Mr P Mbhele (DA) remarked that there was nothing like a partly achieved target. It was either a target was achieved or not. He asked for clarifications on what constraints DoT was facing were and how it intended to address them. He further asked why there was a high dropout level at the civil aviation colleges and enquired about the level of disciplinary process concerning the 23 % misconduct cases that had not been completed.Finally, he asked DoT to specify the names of the provinces that made up the eight provinces in Further Education and Training (FETs).

Mr Vilana replied that the constraint related to the capacity constraint in the Internal Audit Unit. The capacity in previous year was red but had improved to green as a result of increased personnel at the Internal Audit Unit.

Ms Dipsy Wechdemang, Acting Chief Operating Officer, DoT, stated that there were initially five aviation colleges but this had been increased to eight. The initiative started with 497 students but there were presently 1037 students under the initiative. The dropout however was caused by insufficient background in Maths and Technology. 14 immobile and 29 mobile laboratories had been developed. The mobile laboratories were intended to reach the rural areas where learners could be supported and DoT was partnering with the private sector to actualise this. Decisions would be taken soon on some misconduct cases as five forensic investigations had been analysed and concluded.

Ms Ngele commended the FET initiative, noting that the introduction of transport related disciplines at the FETs would help to absorb more qualified personnel into the industry.  

Mr G Krumbock (DA) noted that almost half of the aircrafts in South Africa were grounded because of the process and conditions attached to the renewal of air worthiness. The aircraft and airport owners believed it was completely wrong to review the air worthiness annually and he was not convinced that the regulations that had been put in place were helping the industry. The drawing up of regulations was not as important as the outcomes as regulations were only a means to an end. He wondered why the document was not speaking to end products. It also was not clear from the report that there was critical shortage of personnel in the Civil Aviation Authority (CAA). There was a lack of trained mechanic in the aviation sector and saving R2.2 million was not an achievement in the establishment of the Aviation Safety Regulation Board project. It was expedient to ensure that South Africa’s sky was safer instead making savings.

Mr Thwala replied that air worthiness referred to certification, and was not necessarily about regulation. The need to certify aircrafts before they could fly was important and an aircraft could not have a license if it was not airworthy. In terms of regulations, all departments were supposed to have regulations that aligned with relevant legislation. There was also a committee known as the Civil Aviation Regulation Committee. Aircraft owners and operators were members of this committee and agreed to the regulations. Stakeholders must adhere to regulations when they were passed. Maintenance must be done on aircrafts and an appeal provision existed if an operator was not satisfied with a decision on airworthiness. The CAA was noted for safer skies, safer aircrafts and competent pilots. It was commendable that the CAA grounded aircrafts because it saved lives. The under spending in the CAA was there because funds was moved to the DoT as the former could not be the player and the referee at the same time. The issue of filling of vacancy at the Civil Aviation authority was being dealt with by the Authority and not DoT.

Mr I Ollis (DA) responded that he had received complaints from aircraft owners. It was not about the issuing of licenses but about the bureaucratic challenges and time spent processing the airworthiness certificate. In previous years, the aircraft owners used to get a monthly memorandum but they were not getting that anymore as the system had changed and the process was now more cumbersome.

The Chairperson asked for clarification on what the S’hamba Sonke programme was doing and what FTE meant.

Mr Vilana replied that FTE stood for Full Time Equivalent, and was a unit measure utilised to determine the employment opportunities created that lasted for more than six months. Jobs that were classified as FTEs were created under the S’hamba Sonke programme.

The Chairperson remarked that the notion of FTEs was making a situation look like it was gone while it was still there. If a job was created and lasted for a particular period, it was not a full time job. The notion of FTE was misleading and a seven to eight months job should not be called full time.

Mr Vilana replied that the notion of FTE was a measure used across the public service especially the Department of Public Works.

The Chairperson responded that it was wrong for the Department of Transport to follow Public Works’ example. DoT and the Transport Portfolio must have its own definition of the types of jobs that should be created. The Committee also went to some provinces and could not see any jobs being created or work done under the S’hamba Sonke programme.

Mr Vilana replied that work was being done under the S’hamba Sonke programme. To ensure that meaningful progress was always recorded, the DoT was pushing other entities under it even as the Committee was pushing DoT.

Mr Hlabisa added that the Committee’ sentiments on job creation and the S’hamba Sonke programme was well received. The DoT was contending with some challenges including the S’hamba sonke programme and the issue relating to FTE jobs. It was trying to introduce the element of Cooperatives Movement through which a household would be engaged in a contract with the government for a year, and which would also be reviewable. There was however the need for policy makers to look into the prescripts of some policies particularly FTE and the Expanded Public works Programme (EPWP). Policy makers needed to put in place policies that would lead to sustainable outcomes.

The Chairperson requested clarifications on the objectives of the S’hamba Sonke programme.

Mr Hlabisa replied that S’hamba Sonke was mainly for the maintenance of roads based on the cadastral assessment of roads that had been done. It was focused on major rehabilitations; fixing flood damaged roads and potholes, as well as the enhancement of capacity at the provincial level. However, it was imperative to amend the Division of Revenue Act, 2013 (DORA Act) to consider issues of access to schools, clinics and other social facilities especially in the rural areas. There was a need to review the new formula which utilised traffic volume to make decisions on whether a particular road needed to be attended to.

Ms Ngele asked if the S’hamba Sonke would be implemented in all provinces.

Mr Hlabisa replied that the programme would be implemented in all provinces.

Ms Ngele responded that Eastern Cape Province was not being reached by S’hamba Sonke as she had not seen anything, and that was why monitoring was important.

The Chairperson remarked that the Committee needed to have a clear understanding of what S’hamba Sonke was doing so that it could focus on what was being done. Rural areas did not have infrastructures and this was why the S’hamba Sonke programme should not be taken lightly.

 Mr Ollis expressed concern about the absence of the Minister or Deputy Minister at the meeting, stating that a new Acting Director General was sent to the Committee without any explanation about the absence of the two principals. Officials were not accountable first to the Committee but to the Minister or the Deputy Minister, but the Minister and the Deputy Minister were accountable to the Committee.

Mr Ollis noted that the report was detailed. He was however worried about the quality of financial controls in the entities other than the DoT. DoT had the responsibility to oversee and it must pay careful attention to the entities by also tightening up on the internal controls. He asked for clarifications on the funding models in the Economic Analysis and Modelling sub-programme of the ITP, the overhauling of 1390 rail coaches, the kilometres of roads maintained under the Road Infrastructure and Industry Development sub-programme of the Road Transport programme, the R704 million spent on E-Natis, and transaction fees for vehicle registrations under DoT’s budget. He also requested clarity on the purported achievement of the completion of the Feasibility Study on Moloto Road Corridor as it was gathered that the study had been sent back for revision. He asked when the Single Transport Economic Regulator (STER) would be implemented. He expressed doubt about the issuing or renewal of the drivers’ license card which the report indicated was being done within 24 hours, noting that his renewal had taken more than six weeks to be processed.

Mr Vilana replied that DoT was engaging on how to better do its oversight work. DoT would be more specific about the things it wanted to see reflected in the report of the entities especially financial performance and governance. The issue about the funding model took cognisance of the discourse in public spaces that transport infrastructure funding had been wrong. The funding model was looking at ways of maximising the ability of grants to deal with transport infrastructure deficiencies, while also considering how to create a symbiotic relationship among the DoT’s different programmes so as to ensure that efficiency in a programme was not complemented by inefficiency in another. The draft bill concerning STER was being finalised and would be considered under the next Medium Term Expenditure Framework (MTEF), while the 1390 rail coaches referred to the new rollstock programme. The feasibility study on the Moloto Road Corridor had initially been done but National Treasury said the study was insufficient.

Mr Pretorius added that the R704 million was the expenditure DoT incurred on the maintenance of the E-Natis system  

Ms R Motsepe (ANC) requested an update on the Shova Kalula and National Scholar Transport initiatives, and employment equity between male and female at DoT.

Mr Vilana replied that employment equity was still a challenge but the DoT had improved on this. DoT was broadening its intern intake to include more female.

Mr L Suka (ANC) remarked that as detailed as the report was, time frames were lacking in it and DoT was conspicuous by its silence in that regard. There was a need for a paradigm shift to move it away from being a conveyor of funds to other entities to being a Department that was proactive. It was not acceptable that 97 % of the budget went to entities and DoT might be incapacitated in its coordination of the entities with the remaining 3% of the total budget. The Committee was ready to look into whether there was a need for a bill that would give DoT more power. Underspending was not acceptable because it served as an indication that works were not done or plans were incoherent. There was a lack of stability at the human resource level of the DoT. The matter of stability at the senior management level at the DoT should be urgently addressed because the senior managers were in charge of a very big budget. DoT should be more specific in terms of numbers of jobs created and where they were created. DoT’s Outcome 4 was very important as a statistic of 40 000 annual deaths on road too much. South Africa needed to be creative in providing safety for all road users. DoT needed to collaborate with other sister departments to raise awareness on road safety. Perhaps, it was imperative for Dot and the Department of Basic Education to work together to raise road safety awareness. Automotive devices such as Black box should be incorporated in road safety initiatives. The progress recorded regarding South Africa’s national roads was commendable but the challenge lied in the access and rural roads where DoT must collaborate with provinces to improve rural and access roads.

Mr Vilana replied that time frames were not used in the Annual Report but the measurable targets and time frames were utilised in the Annual Performance Plan (APP) and Strategic Plan. The instability noted in human resources was at the level 6-10 salary band but there was stability at the Director level. The majority of the Deputy Director Generals had been there for about five years.  

The Chairperson remarked that it was unfortunate that the provincial and national government and their departments and entities were undermining the process of intergovernmental relations framework and the integrated national development planning. There was no reason why coordination should be ineffective as the instruments for adequate coordination had been put in place. DoT must urgently strengthen its coordinator role. The institutional arrangement of DoT must also be seriously considered as it was inappropriate for the Department of Public Works to have oversight on transport projects as this oversight ought to be done by DoT. The issue with the National Scholar Transport with the DoT and the Department of Basic Education contesting for the tender and contracting right was unacceptable. Education was to teach and transport was there to provide transportation. It would be a failure for DoT if it did not make clear that transporting was its business. The Committee had been asking for the policy documents so that the Committee could engage with the Portfolio Committee for Basic Education and ask how the latter intended to provide oversight. The key issue should not be about contracting but the safety and comfort of South Africa’s children. The process of developing the National Scholar Transport Policy had already taken more than 7 years and this was unacceptable.

Mr Vilana replied that the comment on DoT’s coordinator role was well received and DoT would take the comment as a guide in subsequent financial years. The initial approach on the National Scholar Transport framework needed improvement and the document was at the stage where it was going to the Minister and then later to the Committee. The drafting should be completed by the end of the financial year.

The Chairperson responded that drafting a policy should not take over seven years. It was disappointing that the policy was still at the drafting stage.

Mr Suka requested that DoT should provide a progress report on the National Scholar Transport initiative in the next meeting with the Committee.

Ms Ngele added that a progress report on Shova Kalula should also be provided by DoT

Mr Vilana replied that DoT would provide the progress reports as requested by the Committee.  

The Chairperson stated that it was important for DoT to conduct an inventory on the number of schools and clinics that were not accessible in all weather conditions because giving bicycles without putting adequate infrastructures in place would not have the desired effect. She asked if DoT had read the Committee’s oversight report on S’hamba Sonke and PRASA. She questioned the rationale for the regulation which stated that 200 vehicles must be plying the road, noting that the policy was not good for the rural areas because the determining factor should not be the number of cars but the economic potential of the community. She wondered why PRASA could not take a cue from China by building its own trains and enhancing the local capacity of South Africa’s populace. She asked why the technology that could monitor the behaviour of drivers in the form of Black Box could not be adopted to help expose the violators of road traffic laws. She further asked why the process of producing national driver’s license card was been outsources as the process was not complicated. There was no low cost structure in South Africa’s aviation and this was against the principle of Universal Access to Aviation as it seemed like aviation was only accessible to the rich and some certain races in the nation.

The Chairperson remarked that the Committee would compare the Auditor-General South Africa’s (AGSA) report with DoT’s report after the presentation by the entities and use all the reports and feedbacks to engage with DoT at a later date.

The meeting was adjourned. 
 

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