SANParks & Isimangaliso Wetland Park on Quarter 2 performance; Curbing wildlife crime & rhino poaching / killing in 2016/17: SANParks briefing

Meeting report

Election of Acting Chairperson

After a nomination and voting, Mr P Mabilo (ANC) was appointed Acting Chairperson in the absence of Mr P Mapulane (ANC).

Apologies

Apologies were received on behalf of Mr Mapulane, together with three other ANC members. Apologies were also received from the Minister (who attended another meeting) and the Deputy Minister.

The Chairperson assured Mr T Hadebe (DA) that, even though only four members of the Committee were present, they could continue for members from other Portfolio Committees were present. Those members were excused just after the meeting started.

Mr Mabilo said the issues of the day were not contingent and no voting was to take place. He gave over to SANParks to present.

Briefing by SANParks Second Quarter Performance Report and Financial Position

Opening Remarks

Ms Beryl Ferguson, Member of the Board of Directors for SANParks and Chairperson for the Human Capital Management Committee opened the presentation with a few remarks - after apologising for the Chairperson of the Board’s absence.

She assured the Committee that the Board of SANParks takes its responsibility very seriously and that they have already started to engage on the predetermined targets of Quarter Three and that many of the areas of concern, to be presented today, have already been improved upon.

Whereas now 70% of targets are met 77% are so far met in Quarter Three. The Board was especially pleased with the improvement with the figure for local black overnight visitors. That shows the efforts put in to transform the visitor profile are paying off.

The year-on-year increase in tourism numbers and revenue growth, despite difficult economic times, is noteworthy.

The increase success in dealing with Wildlife Crime, including Rhino Poaching, is also heartening.

The Board expressed concerns about the following:

• Slow progress reaching gender and disability employment targets,
• Slow progress and late funding for various Expanded Public Works Programmes (EPWP),
• Slow progress for cultural and historic sites strategic planning.

There was also mention of HR costs exceeding the budget which is attributed to equal pay for work of equal value requirements (stemming from the 2014 amendment to the Labour Relations Act) and overtime due to the fight against environmental crime, such as the fight against Rhino Poachers.

She thanked the Committee and handed over to Mr Fundisile Mketeni, CEO of SANParks, who introduced his team and presented the second quarterly report.

Presentation

The targets that were a “work in progress” or “”yellow” included:

• Only 81% of the Wetlands that had to be rehabilitated were rehabilitated – this was due to a lag in funds from the Department of Environmental Affairs (DEA) and catch up plans have been developed.
• The Consultation on SANParks Wildlife Utilasation Strategy was not completed – a workshop was scheduled and the draft document is expected to be complete by the third quarter.
• The Consultation on the SANParks cultural heritage strategy was also only partially completed and further engagements are scheduled in Quarter Three.
• Only 88% of the full-time equivalent jobs were created for the various EPW programmes – this was because there was a lag in the approval of the DEA funded projects. Remedial plans were put in place, but it is still unlikely that the target will be reached.
• The draft for the Socio-Economic Development (SED) strategy was not completed and only drafted and circulated for inputs.
• For the new Green and Blue Economy Project none of the Blue projects were completed because the DEA is still in process towards finalising controlled access for communities in Tsitsikamma (the consultation process with the identified communities is a prolonged process)
• The staff vacancy rate had to be less than 5% and it was 5.9%.
• The percentage reduction in the average number of sick leave days taken annually per capita
• The funds received from fundraising projects are also elow target.

SANParks was “off-target” or “red” with the following:

• The percentage of employees from designated groups: the percentage of Blacks, people with disabilities and women in management. Two female senior executives resigned recently.
• The percentage of employees meeting minimum requirements – although this takes a period of three years to set right.
• The percentage of the payroll spent to the skills development programme.
• There were over-expenditure of R333 million, but R320 million were for special projects thus the actual figure is R12.4 million (which is mainly due to HR costs)
• Because of not meeting the target of direct HR cost in the total expenditure - overtime within parks should be curbed. This is challenging because overtime is related to the fight against rhino poachers.

Mr Ragesh Mahabeer, CFO of SANParks closed the presentation by saying that, according to the balance sheet, SANParks is in a stable financial position and slightly ahead of budget. The challenge of depressed tourism income improving steadily is attributed to more relaxed visa requirements for overseas visitors.

HR costs is the only area of concern in terms of expenditure. This is an immediate focus area and positive impacts will be seen within three, four months.

Ms Lizz McCourt, Chief Operating Officer (COO) asked for guidance on the Quarter Three Report and asked if it can be combined or used as baseline for the Annual Performance Plan (APP)

Discussion

Mr Hadebe (DA) asked:

• What is your involvement in the management of parks for the provincial spheres of government - for example in the North West province, where high value species were donated recently?
• Which species and how many of them were affected with the recent droughts? Was in necessary to cull some of them?
• Have you considered using drones in the fight against poaching in your parks?

Mr P Ross (DA) expressed disappointment with the poor attendance of members from the governing party. It was embarrassing. He wanted to know in which areas national parks will be added and what the cost for this will be.

Mr Ross asked where are the areas of land that need to be rehabilitated. Furthermore, he asked why the target for the percentage reduction in recorded fatality of rhinos and elephants were so low (a target of 1% was set and 13.9% were achieved). He also wanted to know why so little revenue was generated through fines and why the average fine were only R597.

The Chairperson said that there were formal apologies tabled for members not attending due to circumstances beyond their control.

Ms H Kekana (ANC) asked what caused the staff to leave their employment at SANParks. “What are you doing to keep staff there? What is the specific wellness programmes taking place there?”

Ms J Edwards (DA) congratulated SANParks on achieving a 13.9% reduction in recorded fatalities for rhino and elephant poaching. She wanted to know if the setting of a 1 % quarterly and 2 % annual reduction target was pro-active. “Don’t you think that the achieved target should be the new baseline?”

Mr Mketeni thanked the members for the questions and said they will share the responses among them. He answered Mr Hadebe first. SANParks was not involved in provinces but that they do participate in government structures and thus contribute in developing policies for the whole sector. This happens through the attendance of Working Groups. SANParks had a clear process, with oversight and policy, on who they donated to. A call going out to South Africans was expected soon.

Mr Mketeni admitted that culling had to be done. Up front the numbers of Wildlife sales and reductions were approved by the Board. This had to be done for ecological and economic reasons and also to restore areas. Hippos were culled in the Kruger National Park (KNP) because the rivers were dry. It was terrible for tourists to see suffering animals. Warthogs - who breed like flies and eat everything - also had to be culled. The numbers for this and others can be provided.

Ms McCourt added that the drought the country experienced in KNP was worse than the last severe drought in 1992. Substantial rains were received, but in some areas restoration will take up to five years.

Mr Mketeni said SANParks considered using drones, but that they were not the solution. According to him the drones were not as effective in the African bush as they are in the desert where they were developed.

Addressing Mr Ross, he replied that SANParks developed a plan each year to identify areas – under-represented biomes - they wish to include in their parks. SANParks did not buy Savanah, because there was enough of it in Kruger but they want Fynbos, Bush and Thicket. He said they were opportunistic in their approach because often land owners do not want to sell. They are looking at areas around the Addo National Park and the Namakwaland National Park and negotiations and prices will be reported to the Committee.

Mr Mketeni confirmed that the achieved target of percentage reduction in recorded fatality of rhinos and elephants will become the next target.

Ms McCourt said that not all land expansion costs money. There are also contractual parks and funding used for expansion also come from game sales and a land grant from the Department.

She answered that the fines were so low because they make a specific differentiation between fines and an arrest. For key species the arrested go through a court process. SANParks used prescribed fines from the National Environmental Management Protected Areas Amendment Act (NEMPAA) and that the fines are for things like snares and finding a dog in the Park.

Ms McCourt assured the Committee that they have a very low staff turnover. People are generally happy and passionate employees to the point of having a fear of stagnation. Most people who have left recently retired. Employees at SANParks had a very high level of job satisfaction and the Wellness Programme was both pro-active and reactive and that it expanded to their families. In the implementation of equal pay for work of equal value the two lowest levels of the employed were positively affected, a good thing – although it impacted on HR costs.

She explained that the initial target for the percentage reduction in recorded fatality of rhinos and elephants where low because in the past they had problems proving that fatalities were due to poaching and not natural causes. The initial figure was based on historic improvements and new technology was not taken into account. The target and ambition are increasing substantially with the new realistic benchmark.

Ms Nosipho Ngcaba Director General of the Department of Environmental Affairs responded to Mr Ross’ question on the total area of rehabilitated land. She said SANParks was given an allocation to rehabilitate land under their control, so the rehabilitated areas are within the national parks - but not all parks have control over things such as invasive species and erosion control measures. The acquisition of new land was informed by the National Protective Area Expansion Strategy that was aligned to the Biodiversity Strategy Assessment and Action Plan.

The Chairperson asked why he did not hear anything robust about alternative or efficient energy use. He wanted clarification on the Blue Economy Project and said that the explanation that the DEA was still in process towards finalising controlled access for the communities in Tsitsikamma did not suffice. He said the issue of wetlands not being rehabilitated due to a lack of funds from DEA was contentious. He asked what the implications will be when overtime - which is an incentive and a reward- will be cut.

Mr Mketeni answered that they do have alternative energy projects in the KNP, but they are looking at the possibility of solar to supply energy for two camps. A test case was started to establish the amount of possible energy that can be generated. SANParks was also exploring possibilities to have energy supplied through the use of waste. But, because this was a new area, SANParks was trying to partner with the Private Sector. The easier route for them (because of a lack of capital) would be to have a guaranteed purchase agreement with an element in the Private Sector – who would ideally involve the community in putting up a solar plant outside the park. No exploration was done on wind energy yet. A baseline assessment of the amount of energy being used is under way.

Regarding Tsitsikamma and access for communities, the new area was open since December. SANParks was busy monitoring access and the take off.

Ms Ngcaba confirmed that there was a delay in the transfer of funds for SANParks’ Wetland Rehabilitation Programme. In the case of iSimangaliso, because of budget cuts, there had to be re-prioritisation. Partly, the challenge was to get the funds through the EPWP. Regardless of how much funds certain targets must be met for the EPWP – therefore targets had to be spread out. This delay was reported on before.

Briefing by SANParks on Strategies to curb wildlife crime (Rhino poaching)

Opening Remarks

Ms Ferguson said that the Wildlife Crime and Corruption Combatting approach was adopted last year. This yielded good results inside the KNP as well as the six other parks that contained Rhinos. The Minister was expected to make an announcement soon on the 2016 statistics. SANParks remained mindful that success was not victory and an approach involving the whole of society was necessary for the next few critical years. She mentioned the important assistance of South African Police Service (SAPS) and the South African National Defence Force (SANDF) at the Joint Operations Centre in Skukuza and said SANParks was benefiting from good co-operation from Mozambique.

In the Kruger – where half of the countries’ Rhinos are – the challenges are now met by the Ranger Core, an Air wing, a Canine Unite and Special Rangers. Appropriate technology has also been developed. Constant co-operation with the Council for Scientific and Industrial Research (CSIR) is vital.

The sourcing of funds needs to be more aggressive- although the Peace Parks Foundation and especially the Honorary Rangers have helped with this challenge.

She said that the rangers inside the park go through terrifying danger in providing the proverbial “thin green line” whilst other long term solutions such as demand reduction and community ownership are sought.

A formal Ranger Wellness Plan has been implemented to take care of the spiritual, psychological, social and physical well-being of these committed men and women.

The Chairperson said that members of the Committee had visited KNP and will do so again.

Presentation

Major General (retired) Johan Jooste, Head of Special Projects for SANParks opened the presentation by saying that the core of the Rhino Poaching problem was poverty turning into greed and end users not being under African control.

He said that only through collaborative global action that reinforces national, regional and international interventions will the country be able to effectively combat this transnational organised crime.

Holistic, integrated and multi-dimensional responses - involving all relevant government departments, including conservation authorities, enforcement and intelligence agencies, customs, the prosecuting authorities and other national, regional and international organisations and stakeholders should be implemented by all countries.

Because of the size of Kruger many solutions do not fit the picture.

The integrated approach for South Africa includes:

• Compulsory interventions,
• Long-term sustainability interventions
• Interventions to increase rhino numbers,
• Game changing interventions

Although SANParks has a good success rate they are still only “doctoring the symptoms” of Wildlife Crime and they will only win when a whole-of-government (WOG) approach is implemented.

The kingpins need to be taken out – a small number of brokers or coordinators are managing the chain. Good intelligence is needed to cut this umbilical cord.

The following is leading to success:

• Reaching out to Mozambique
• Surveillance, Early Warning, Detection and Tracking (SEDT) Technology combined with system integration technology are enabling superior situational awareness that enhances early detection.
• The Wildlife crime Combatting Coordinating Centre that involves, among others, Technology and research (“think tank”) and Strategic communication also have a role to play.
• Then there is also a new Zoning Approach that allows for using different strategies in three different zones inside the KNP.
• Tactical capabilities were also improved by expanding air services, training Special Rangers, building canine capability for three years and night enhancement.

The figure for August 2016 (458 Rhinos poached) shows a decline against August 2015 (557 Rhinos poached). More firearms were also recovered and more poachers (177 for Aug 2016) were arrested. This is in the light of poacher activity increasing (2119 for Aug 2016 compared to 1654 in Aug 2015)

Maj Gen (ret) Jooste closed by saying that SANParks know they must improve this and that this was not victory yet.

Discussion

Ms Edwards said that there is a little bit of hope. She referred to famous people such as Jackie Chan and Richard Branson who started campaigns when Rhino Poaching became massive. She wanted to know if it would not help if South Africa, the main supplier, will do a pro-active campaign. She asked what the process was when a poacher was caught red handed in the KNP. Are there loopholes for them to get loose? Seeing that the demand for Rhino Horn, from the East, was increasing – how can we manage that demand when the demand is not here? Is there any way or direction to go to manage that?

Mr Ross said his burning question was: Is Kruger losing more Rhino than it can currently breed? He wanted clarification on the lead departments in fighting Rhino Poaching and asked if fundraising efforts are linked to certain projects. He also wanted clarification on the percentage of foreign visitors and asked if there were different pricing strategies. What is the line of work of the various Small, Medium and Micro Enterprises (SMME’s) in SANParks? The budget variance of R320 million for special projects, does that include the protection zone in the South? He asked Maj Gen (ret) Jooste why he said that over a 1 000 poachers were arrested this year when it said only 177 on the graph in the presentation.

Mr Hadebe said this was an exciting presentation that looked well, especially on paper. Why does it not show on the ground where it matters? Who is the “brainbox” behind the scene making these strategies? Are they sworn to secrecy? He suggested that perhaps there are leaks from inside when, because even with all the available technology, the poachers are still able to succeed. Who is the Top Management who have been arrested recently?

He asked if SANParks will extend the sustainability threshold to other species - for example doing research on increasing demand from the China for donkey hides in the North West and the Northern Cape? By spending only 4% of the total payroll on skills development SANParks was not meeting that target. Does SANParks have a strategy to improve that and what is it?

The Chairperson said he welcomed the strategy to curb wildlife crime especially Rhino poaching. The Committee had been waiting for this strategy for a long time. He could not understand why the poachers are not deterred seeing the harsh consequences they could face and in the light of improved technology. What will be a concrete acceptable number or percentage for Rhino Poaching?

Mr Mketeni said the sensationalising of Rhino killings – the non-government organisations (NGO’S), the media and some South Africans are recruiting the poachers themselves. When people say Rhino’s are going to be extinct tomorrow the message to the poachers is go and collect as much as you can. When saying what the price of a Rhino horn is, villagers get attracted to the “good money”. According to him the reason ten Rhinos were killed that previous week was because a poor person will take that risk. The message that you will rot in jail or get killed if you enter the KNP unlawfully is not being heard.

Mr Mketeni said even people working in the EPWP, for example clearing alien plants, get attracted to poaching when they compare their current salary to what they can get for the horn of the animals they often see.

South Africa was not losing more Rhinos than we can breed. This is not based on what is happening in KNP – but on a metapopulation approach. Rhinos are taken from Kruger to safer parks and to private people, in whose hands they are still safe. There - babies are being dropped and that is still SANParks animals.

The SAPS is leading the campaign. SANParks’ mandate currently involves seeing to it that, also on the outside, work is done so that those with a plan to poach can be picked up before they even enter the park. More campaigns and intelligence work outside is therefore needed.

Pricing is the same for foreigners as it is for South-Africans, but that there are different concessions inside the park to also cater for the upper end of the market. There is a Wild Card for South Africans to get a discount.

SANParks will frustrate itself and everyone if it tries to protect all the species. It is reluctant to extend the sustainability threshold because it wanted to see the impact on the species they have identified first. If success is to be had with the pangolin, for example, they will move on to other species. Also their approach is an eco-system approach which is bad news for research on donkeys as SANParks will not help the donkey. He said Society for the Prevention of Cruelty to Animals (SPCA) must venture there.

The Chairperson asked SANParks to be mindful of the time as iSimangaliso Wetland Park also had to present.

Ms McCourt said the Department of Rural Development and the Department of Social Development should be included in addressing the poverty issue for neighbouring communities.

She said the breakdown of visitors to each park can be provided, but that around 30% were foreigners. KNP was very popular for Germans and the Chinese liked to visit Table Mountain.

Conservation fees are lower for South Africans but the accommodation fee is the same as for foreigners. Regarding the sustainability threshold, data from the Red Data list are taken into account as well as if SANParks control a sufficient enough part of the population. Therefore abalone (less than 5% of population) will not be on the list whereas penquins (90% of them in SANParks’ control) are on the list. The monitoring of Lions and Wild Dogs are to be included in the plan for next year.

The skills development plan is only linked to a very minimal percentage to the minimum skills requirements of employees. The percentage spent on skills development is beyond tertiary education. This includes annual training in health and safety and labour relations. Internal problems with regards to engagement with South African State Information Technology Agency (SITA) in having the Skills Development Plan approved have been corrected.

Mr Mahabeer answered that the point is not to eliminate over time, but to bring it under control.

Maj Gen (ret) Jooste answered that a pro-active campaign is long overdue. He said that the final victory is in the courts after poachers are handed to police. He clarified that the figure of 1 000 poachers arrested was for over the past four years. He said that all fundraising projects are very formal and specific to add certain value and that all of them are all forensically traceable.

Mr Shonisani Munzhedzi, Deputy Director General: Biodiversity and Conservation, DEA, said the Department had never been at a better time than now - specifically for Rhino Poaching - when it comes to an integrated approach and the nature of collaboration as they have all the relevant sectors working in a structured manner.

Chief Ranger Nicolus Funda had the last say for SANParks. He said that of the rangers that got arrested on his birthday last year, 29 July the highest ranking was a regional ranger. The message is clear – irrespective of your rank, you will be arrested by your own people.

Briefing by iSimangaliso Wetland Park on Second Quarter Performance Report

Opening remarks

Ms Terri Castis, Acting CEO, iSimangaliso Wetland Park, personally apologised for the absence of any Board members. It was her fault as she sent the wrong date for the Committee meeting to them. That mistake was only discovered the previous day. The Chairperson of the Board was with the KwaZulu-Natal Member of the Executive Council (MEC) for Education on that day. She assured the Committee that they take their governance role very serious.

The Chairperson said they will accept the apology for that day.

Presentation

Ms Castis explained that iSimangaliso Wetland Park was not “off target” or “red” with any of their indicators. iSimangaliso was on target with 27 indicators and on a “work in progress” or “yellow” level with five indicators.

These were:

• None of the 3750 hectares that had to be rehabilitated for the annual target of 15 000 hectares were rehabilitated. Although funding was received in the second quarter implementation was further delayed due to problems with tax clearance and the motor vehicle certification of the contractors. Corrective measures included administrative issues to be addressed proactively.
• Only 162 of the 440 temporary jobs were created. Although iSimangaliso were below target for quarter two they were above target for year-to-date. All third-party contracts contain job creation targets. If not achieved these attract penalties used for generating jobs. It is anticipated that the annual target will be achieved.
• The number of training days were 108 less that the target on 1092 with a 1200 indicator. This is the result of delays in land care roll-out as well as withdrawal of a procurement process due to inconsistencies in quotations. It is anticipated that the annual target will be achieved.
• The visitor entry target was also not achieved – the actual figure was 114 948 when the target was125 000. There has been a partial recovery in visitor numbers due to the World AIDS conference.
• No visitor market surveys were done in the second quarter – when one should have been done. These have been deferred to the third quarter to neutralise the effects of the unusual visitor numbers resulting from the World AIDS conference to ensure greater comparability of results

Ms Abeeda Kadir, CFO, iSimangaliso Park, shared with the Committee that the income exceeded the budget by R96,8m for the period April to September 2016. This difference was due to differences in preparation of the budget – the modified cash basis as required by the Public Finance Management Act (PFMA) and the financial statements [Generally Recognised Accounting Practice (GRAP) as required by the PFMA and the application of GRAP23]

Other income decreased by R2.9m due to lower recoveries of administration and elated fees recovered from certain projects as a result of late receipt of funding. This has a knock on effect on various other line items for example personnel costs which are 14% above budget. This will even out as the projects are implemented and concluded by the end of March 2017.

Discussion

Ms Kekana asked how the Department ensures that third parties are not abusing their temporary workers by paying less than required.

Mr Ross wanted to know if the dredging spoils were exempt from Environmental Impact Assessments (EIA’s). He asked what the percentage of foreigners to locals was with regards to visitor entries. He was concerned about the decrease in other income and wanted more detail.

The Chairperson commented that yellow (work in progress) for indicators was not expected from iSimangaliso. He wanted to know what the impact of the World Aids Conference was to understand the relevance of it being mentioned in the report as an attribute to partial recovery of visitor numbers. The delay on the completion of the road contract was also worrying. What was the delays impact on service delivery and was there punitive measures taken against the contractor?

He said issues with contractors’ tax clearance and the motor vehicle certification- resulting in the rehabilitation of wetlands target not being achieved - are clear grounds for the contractor’s disqualification. Why do you run after them? Why do you not come on strongly against them?

He asked if the issue of the expenditure being below the budget suggested poor planning. What is the implication for service delivery?

Ms Edwards asked whether iSimangaliso will be able to catch up or partially catch up on the target of Wetland rehabilitation.

Ms Castis answered that for third party contractors there were contractual conditions on the number of jobs that must be created and the number of SMME’s that must be used. If those targets are not achieved the contractor is penalized and the penalties are used to generate the shortfall of the jobs.

In terms of monitoring what people are paid, the rates that apply are from the EPWP and there is a Project Liaison Committee for each project where communities are represented.

She answered the dredging question by saying that historically the St Lucia estuary was kept artificially open through a process of dredging. A large amount of dredge spoil was deposited to obstruct the flow of the Umfolozi River into the estuary. The thinking at the time was that silt was problematic for estuaries. Extensive research – using money that was given to iSimangaliso by the World Bank and the Global Environment Facility – to assess what is going on in the estuary was done, because especially during drought, there is a high mortality and it has a big impact on the livelihood of communities and also on prawn- and line fisheries up and down the coast.

It was discovered that silt was not a damaging factor and it was important for the benthos (the flora and fauna found on the bottom of the estuary) That is why iSimangaliso is in the process of removing the dredge spoil and attempting to restore the estuary to its normal functioning. The whole process around the removal followed an EIA and the Department is extensively involved in that.

The land rehabilitation that is done involves the removal of alien plants and coastline cleaning.

Visitor entries are 60% domestic and 40% international.

The impact of World Aids Day was that it brought in a huge international contingent to Durban – therefore in July and August the iSimangaliso Wetland Park was fully booked. It helped to make up the gap in visitor shortfall.

The delay in the completion of roads is more a delay in the handover of roads. iSimangaliso is unhappy with the level of snagging and has issues for the contractor to address. Therefore they have not taken handover. Service delivery is on track. Where there have been delays there were penalties. The International Federation of Consulting Engineers (FIDIC) Red Book is used to guide them. The project experiencing a delay due to tax clearance and the motor vehicle certification is 100% local SMME’s. Therefore iSimangaliso is going the extra mile, but pre-planning should have been done.

The Chairperson assured her that that is a sufficient explanation.

Ms Castis answered that the decrease in other income was the result of the recoveries in administration and fees received. It was a percentage of expenditure with regards to the Working for Water and the Working for Wetlands project. Because this funding was received late this affected the other income. Around 7% of fees were received from Working for Water and Working for Wetlands and about 3% of the fees were received with regards to administration.

The 12% below budget expenditure was due to the capitalization of the roads. That should iron itself out by the end of March.

The Chairperson said the Committee did not have many issues with iSimangaliso and that they, as a Committee just have to play their oversight role to make sure the Park sustains its good performance.

He asked if there were any closing comments from the members. There were none.

He thanked the Committee, the DG and the entity. Arrangements were made for transport to the following SANBI oversight visit to Kirstenbosch.

The meeting was adjourned.