Department of Science and Technology on its 2nd and 3rd Quarter Performance for 2014/15

Meeting report

The Chairperson welcomed everyone to the meeting and hoped the Department would continue to do as well as they did. It was widely understood that the Department needed more money, but it was also the Department’s responsibility to show that the money, if the budget should be increased, would be spent effectively.

Second Quarter Performance
DST Director-General, Dr Phil Mjwara, said DST, as the custodial coordinator for the development of the National System of Innovation (NSI), influenced this system through key strategies such as the National Research and Development Strategy (NRDS) and the Ten-Year Innovation Plan. The measure of success would be the level to which science, technology and innovation (STI) played a driving role in enhancing productivity, economic growth and socio-economic development. An outline of the Department’s key objectives and the contribution to government outcomes were given.

DST’s performance involved a total number of 65 output targets. Of the 65 targets set for the 2014/15 financial year, in the second quarter the Department was on course with a total of 45 (69%). Six (9%) targets had been achieved and 14 (22%) were at moderate risk. The presentation gave a detailed account of the purpose of each programme within the Department, targets at moderate risk, those on course, targets achieved, and targets in danger of not being achieved . Some of the targets at moderate risk were that suppliers should be paid within 30 days after date of invoice and that the tender process should be completed within a 90 day period. The Department achieved 96.4% of invoices paid within 30 days in the second quarter and only one out of four tenders went beyond the 90 day period. It took time to obtain legal opinion on the cancellation of the tender and the project owner should take a decision on the cancellation based on legal opinion. Another second quarter target at moderate risk was the installation of the third MeerKAT antenna which should have been installed by 30 September 2014. The plan agreed between the Square Kilometre Array (SKA) project and the supplier was to have all four antennas installed before end of March 2015. Most technical risks were covered but the schedule remained under pressure.

Programme 1: Administration
This programme was on course to achieve its annual targets of having minimum 90% alignment to 2015/16 across DST planning documents submitted to Parliament by 31 March 2015. DST also wanted quarterly performance reports approved by DST EXCO and signed by the Director-General within 60 days after each quarter. This programme achieved its targets of having six communication, marketing or media plans developed by 31 March 2015, as well as achieving an unqualified audit report of financial matters by 20 September 2014.

Programme 2: Technology Innovation
Highlights of this programme included the redefined concept note of the Emerging Industries Action Plan (EIAP) and the terms of reference for the EIAP were in the developmental stages during the reporting period. There were consultations on the World Intellectual Property Organisation Initiative and the Technology and Innovation Support Centre (TISC) which were being implemented by the National Intellectual Property Management Office (NIPMO) in partnership with the Companies and Intellectual Property Commission (CIPC). As part of the planned bio-prospecting permit application process for a skin tone product, the Access and Benefit Sharing Agreement was signed between the Cosmeceuticals consortium and the community of Kundabazaki in the Eastern Cape on 25 September 2014.

Programme 3: International Cooperation and Resources
The programme achieved its quarter two target of having nine specialist or joint technical workshops, policy dialogues or conferences accessed, hosted or facilitated for participation by South African researchers and students by 30 September 2014. The annual target to have eight regional or continental initiatives promoted to strengthen STI engagement with Africa by March 2015 was on course, as well the annual target to have 19 regional or global initiatives led by South Africa by the same date. South African researcher and student participants in international capital development opportunities numbered 568 at the end of September 2014 and was on course to reach the annual target of having 1 456 researcher and student participation by 31 March 2015.

Programme 4: Research Development and Support
Highlights of this programme included the visit to the Netherlands and Belgium by DST officials, together with a team of astronomers and experts with the main aim of strengthening astronomy and “Big Data” partnerships with key interlocutors in the Netherlands and Brussels. As a result, clear collaborative opportunities have been identified that could reduce the lag in “Big Data” in South Africa, not only in scientific applications, but also around enabling policies, procedures and standards. A bibliometric analysis of South African astronomy outputs was currently underway through the Centre for Research on Evaluation, Science and Technology. The first draft of the National Research Foundation (NRF) Amendment Bill was completed with the assistance of the DST legal staff and substantive changes had been incorporated in the NRF ACT. During the reporting period, the Minister approved the development of three new Centres of Excellence in HIV/AIDS, water research and human settlements. In addition, the Minister recently approved the award of at least 20 more Research Chairs by the NRF. These 20 new Chairs would be reserved for the appointment of female South African citizens and permanent residents.

Programme 5: Socio-Economic Innovation Partnerships
The Department was on course to achieve its annual targets of having two knowledge products on technology-led opportunities for sustainable livelihoods published on the DST website by 31 March 2015 and to have 20 knowledge and innovation products added to the Intellectual Property (IP) portfolio added by the same date. The monitoring of signed contracts was ongoing and four more knowledge products had been added by 30 September 2014. Highlights of this programme included the national workshop hosted by DST with the Department of Basic Education (DBE) and the Human Sciences Research Council (HSRC) on the Integration of ICT in Basic Education (ICT4E). The workshop was attended by practitioners who were invited in order to gain insights into the current status and integration of ICTs in schools in South Africa. In support of the Department of Rural Development and Land Reform’s Comprehensive Rural Development Programme (CRDP) strategy, DST was piloting a range of innovative technology solutions to enhance service delivery through an initiative called the Innovation Partnership for Rural Development (IPRD) programme. Within the ambit of the programme, the Council for (CSIR) would be developing and piloting the Corrective Action Request and Report System (CARRS). Through CARRS, communities would be able to report water related incidents that affected their lives. The report would be routed electronically to municipal officials who would be expected to do an assessment and to implement corrective action.

Dr Mjwara gave an outline of the budget allocation per programme, as well as an outline of the National Treasury economic classifications. The budget confirmed that about 94% of the Department’s budget allocation of approximately R6 billion get distributed to the entities. By the end of the second quarter, almost 56% of the budget had been spent.

Third Quarter Performance (1 October to 31 December 2014) and Financial Report
DST’s performance for the third quarter continued in the same manner and it showed the Department was on course with 69% of it targets, while achieving 15%. There were seven innovation support interventions developed by NIPMO to support key strategic areas, notably the 26% ‘at risk’ targets. The Department was working very hard to secure STI funds for knowledge building and it was a big challenge across the portfolio. The science community was concerned that there was no framework in place that supported basic science and that the work of the Department was moving towards innovation at the expense of basic sciences. A framework had been developed that could be used by all in the support of basic sciences and the progress was on course for the third quarter. Cabinet had approved the IKS Bill and call had been made for public engagement.

Dr Mjwara gave an overview of the targets on course and achieved by the Department in programmes one to four. South African researcher and student participants in international capital development opportunities numbered 204 for the third quarter and the Department was working hard to reach the annual target of having 1 456 researcher and student participation by 31 March 2015. Through Programme 4, the Department continued to fund students through bursaries and the preliminary report on the continuous challenge of a lack of postgraduate students was underway. This report would eventually be shared with the Committee and hopefully would address the challenges the Department faced in trying to attract postgraduate students.

In agreement with the NRF on how the funds would be distributed, R400 million was allocated to the next generation of researchers. The idea was not only would the Department fund bursaries for basic sciences, but also fund students going into industries to create a balance between sciences and applied technology. For Programme 5, a Research Development and Innovation Roadmap on Water had been developed, in collaboration with CSIR. It was an exciting initiative and it would bring all the smaller projects the Department had been initiating together in a much bigger effort to address water challenges.

Discussion
Mr C Mathale (ANC) requested more information on what was done to change the status of some targets from ‘red’ to ‘moderate risk’. He commended DST for their efforts in spite of the challenges the Department faced.

DST Deputy Director-General: Technology Innovation, Mr Mmboneni Muofhe replied that Mr Mjwara had already asked that updates on the targets should be more regularly updated. DST looked at the previous financial year of the same quarter to see if the risks were higher or lower at the same time in the life of the target. The status of the target was determined to be relatively equal to the previous financial year and was currently at 70%-80% achievement. DST was also trying to get more concrete commitments in terms of service delivery to achieve the targets.

Ms L Maseko (ANC) referred to slide 19 of the Third Quarter Report and asked why the ‘seven support intervention developed’ target was ‘red’, but classified as ‘moderate risk’.

Mr Muofhe replied that there were interventions in place to make sure the target was achieved and the status was in fact incorrectly captured.

Dr Mjwara said capturing the status of a target should be reflective of the whole year and not just for that specific quarter.

Ms Maseko asked whether the targets not achieved would be achieved by the fourth quarter and if not, what would be the main reason for not achieving. In terms of the cosmeceuticals consortium, she asked if the Mnyeshe Village had also been considered.

Dr Mjwara replied that DST was confident in achieving the targets, because even those targets indicated at a low achievement percentage needed to be managed and prioritised to move up to the 70% -80% achievement rate. Some of the targets were linked to the Department’s entities and in the previous financial year the Department accepted targets of an entity without interrogating it for viability and without ensuring that the strategies to mitigate the risks were in place. In other cases unrealistic targets were set in unchartered areas, but it was lessons learned and those lessons needed to be applied.

Mr Muofhe was not aware as to whether the Mnyeshe Village had been considered for this project. In the sphere of getting knowledge indigenous aspects, DST had been working with the Department of Environmental Affairs to identify communities classified as ‘knowledge holders’. After identification, work continued with the Department of Environmental Affairs to develop the Community Trust where all the proceeds of this knowledge would be saved to benefit those communities. Communities were identified in Limpopo and Gauteng to undergo the process. It could be that Mnyeshe Village was supported by DST, but had not reached a stage where specific pronouncements could be made, but DST would make follow-up inquiries and report to the Committee.

Dr Mjwara added that DST took note of the importance of working with the Department of Rural Development and Land Reform, because it was important that rural areas benefited in terms of employment opportunities form discoveries in rural areas.

The Chairperson said the challenges were that in most cases, people not from those communities also wanted to benefit from innovations and politicians often worked towards leaving a legacy rather than focusing on the people. It should be about the people and the country, because innovation was the pillar of the economy.

Ms Maseko asked if DST also worked with China in the same vein as it had been working with Taiwan.

Dr Mjwara replied that there was a programme in the IKS programme that focused on working with China in terms of how the Chinese developed and packaged their traditional medicine. More information would be provided to the Committee.

The Chairperson thanked everyone for their input and the meeting was adjourned.