South African National Parks on its 2013/14 Annual Report

Meeting report

Briefing by SANParks

Dr Nomvuselelo Songelwa, SANParks Acting Chief Executive Officer, told the Committee that the Audit Report of the Auditor-General gave the entity an unqualified opinion with no matter of emphasis. A corrective active plan was being rolled out to address issues the Auditor-General raised. For example, all processes and transactions relating to the issues of the audit outcome are being reviewed and adjusted according to the required financial reporting standards. Personnel recruitment was being reviewed to ensure better financial reporting and operational efficiencies. The acquisition of a suitable financial application was being considered to enhance financial reporting. All these issues were expected to be completed by 31 March 2015. Specific weaknesses and shortcomings had already been identified and addressed to prevent any re-occurrence of stated findings. This was set to be completed by 30 November 2014.

Financially, SANParks recorded a 2.3% improvement against the budget. The entity made an income which amounted to R540 million against a budget of R528 million. It attributed this to retail, tourism and concession that realised more than budget, interest earned, sales of fauna and flowers and disclosure in terms of GRAP 23.

The entity over budgeted by approximately R310 million (22.9%). This meant the expenditure amounted to R598 million against a budget of R585 million. This translates to 2, 3% more than the budget. This was attributed to additional rangers and insourcing of security services. The operating tourism revenue year-on-year improved by 13.4% (R141.9 million) compared to last year. This meant reaching R425 million against a budget of R409 million. Graphs and tables were presented to the Committee to illustrate financial breakdown.

On growing societal support and providing access and benefit sharing, the total number of learners participating in Environmental Education Programme improved by 22.6% (39 652) compared to the planned annual targets. The following projects were implemented:

• Kudu Green School Initiative
• Kids in Parks (including take Kruger to Kasie Project)
• Park Based Environmental Education Programme
• Imbewu Youth Project

During the period under review, the number of visitors who visited the parks totaled 24 330. This meant more visitors than the previous financial year. Since 2006 more than 136 000 people had been granted access to the national parks. This had resulted in improved data recording for free entrants than the year before and has led to an increase in public programmes.

The accommodation occupancy of SANParks had recorded an improvement compared to last year. It moved from 70.0% to 70.9%.  The tourism revenue improved by 13.4% compared to the previous year. The occupancy rate was relatively higher than the general South African tourism industry occupancy rating for the year under review. Concession occupancy improved by 10% year-on-year to 59.7%. Domestic Black visitors had improved by 13.6%. Against a target of 423 300 the number achieved was 56 018. The total number of visitors had improved by 5.9% (293 398) compared to last year.

In its effort to improve the conservation estate, the entity had achieved 98% in the implementation of the 10 biodiversity monitoring programmes. The following key activities, amongst others, were completed:

• water quality surveys
• resource use reporting
• monitoring drivers of climate change
• management of alien and invasive species
• development of the biodiversity reporting framework
• rhino demography profiling survey in the Kruger National Park

SANParks had completed the oral history collection in Kruger National Park, and preparatory work had been completed for the Thulamela nomination as a National Heritage site. Negotiations with the University of Pretoria, SAHRA and SANParks were on going regarding the custodianship of the Mapungubwe collection. Progress report on Integrated Management Plan (IMP) had been submitted to UNESCO.

SANParks had lost 615 rhinos due to poaching. 323 suspects had been arrested nationally, of which 118 were arrested in the Kruger National Park. The implementation of the Kruger National Park Intensive Protection Zone Initiative was in place.

Concerning land acquisition, SANParks had secured 3, 267.5 ha of land. The following land was added to the national parks system:

• Addo Elephant National Park – 306, 46 ha
• Namaqua National Park – 2, 219.61 ha
• West Coast National Park – 741, 38 ha

Not reaching the target of 8, 726 ha was largely blamed on lengthy land acquisition negotiations and unaffordable market-related land prices.

In enhancing organisational reputation, the following areas were key focus for media reporting:

• rhino poaching incidents especially in Kruger National Park
• public donation to support anti-poaching initiatives
• new restaurants and other strategic retail operators in national parks
• reputational events such as the Kudu Awards and the SA National Parks Week.

Consultation with the GCIS was in progress to align media and reputational reporting and to develop a suitable tool to quantify media rating.

With regard to Research and Development, 621 new research projects had been evaluated of which 462 complied with the set criteria of essential and important to SANParks business. SANParks achieved 74.4% in this area against a target of 70%. Information published in peer reviewed journals (national and international) resulted in a presence and credibility in the academic domain.

On the issue of facilitating socio-economic development, SANParks had created 1,094, 961 Person-days on temporary jobs created through the Expanded Public Works Programme (EPWP). 13 141 temporary jobs had been created through the EPWP while 624 SMMEs had been supported through the EPWP to the tune of R144, 0 million. Nine community based socio-economic initiatives have been implemented at a cost of R6.2 million. Post matric bursaries totaling R700 00 were offered to 27 learners over a period of five years. Science and Computer Laboratories have been developed in Free State, Northern Cape, Limpopo, Eastern Cape and Mpumalanga.

Lastly, regarding the promotion of effective management of human capital, figures indicated a creation of 241 permanent jobs and 114 temporary ones. The percentage of women in management positions was standing at 32.0% while that of the disabled was at 0.4%.

Discussion

The Chairperson remarked that the entity had received an unqualified audit for many years. But the issues raised in this opinion were of a concern on both performance and finances. The Auditor-General found the entity wanting but it agreed to correct matters. Further, he felt the entity had summarised its presentation too much. For example, not much was said on the issue of rhino poaching. Nothing was said about measure to curb rhino poaching yet this problem was escalating.

Dr Songelwa explained that there was progress on attempts to curb rhino poaching. The Intensified Protection Zone had been finalised. If a person approached the zone with a cellphone, that was detected. Even a bullet shot close to the zone was also detected. An extra helicopter had been bought, and time to get to the area had been reduced. Now it took 20 minutes instead of an hour. There were also learning exercises that had been learnt from poaching. An engagement with the security cluster is on-going and a strategy had been developed so that all affected parties were on the same wavelength on this issue. A cost estimate for fighting rhino poaching together with an implementation plan was in place. It was estimated the whole exercise would amount to a cost of R400 million.

Mr T Hadebe (DA) asked what would happen to the unused money earmarked for land acquisition.

Dr Songelwa replied that money was still available for land acquisition. The only outstanding thing was to complete the land negotiation processes which were proving to be lengthy. SANParks was not prepared to make the rich richer. A three year strategy was in place to address the issue.

Ms T Stander (DA) wanted some clarity on the serious allegations of in-fighting within SANParks, stories that abound about rhino translocations and contracts that got declared null and void yet they were signed.

Dr Songelwa replied that the issue of in-fighting was just an allegation. The translocation of rhinos was still happening. There was an implementation plan that was costed and agreed to by cabinet. Translocation was a complex process. Animals were being moved out of the danger and risk zones to SANPark parks and some of these parks had been assessed to see if they were suitable to house some of these animals. She further noted that the Board never approved contracts for the translocation of rhinos. The contracts never existed in the first place. Policies were reviewed when the issue of contracts surfaced and individuals got suspended. A member of staff was facing a disciplinary hearing and was expected to be fined a six digit figure. During the October 2013 Board strategic session, one executive member was found to have communicated with Northern Cape farmers on translocations without the knowledge of the Board. The executive committee confronted the individual. The committee decided to make those contracts null and void because he acted without the authority of the Board.

Ms Stander remarked that the Department of Environmental Affairs did not seem to know how to handle information in the form of having a spokesperson and a communication strategy because there were so many stories about rhino translocations.

Mr P Mabilo (ANC) asked what alternative recruitment strategies were there to ensure that those who were not technologically advanced were accommodated because it appeared that SANParks had saved on the recruitment budget due to the use of technology.

Dr Songelwa indicated that there were many different strategies available that could be tailored to suit their needs. She also noted that another strategy in place was to grow people internally and those who were located around the national parks.

Mr T Bonhomme (ANC) wanted to establish what the conviction rate was for rhino poaching.

Dr Songelwa said in 2013, 69 arrests were made and 36 offenders were imprisoned while in 2014 there were 8 convictions and 50 were jailed.

Ms Stander asked about critical areas which were likely to be affected by the looming budget cuts.

Dr Songelwa replied that cuts would be on entities, operational budget and infrastructure grants.

Mr Mabilo wanted clarity on the three actual significant targets which the Auditor-General emphasized.

Dr Songelwa explained that these referred to the Standard Operating Procedure; natural death and poached animals; and how to recruit Black visitors. She said the details would be sent to the Committee.

The meeting was adjourned.