Minister of Police & Deputy Minister of Economic Development: Executive Undertakings Progress

Meeting report

Minister of Police Progress Report on Undertakings
Minister of Police, Bheki Cele, appeared before the Committee to provide a progress report on executive undertakings made during the NCOP plenary on 23 February 2016. These were about:
• Formulas for Redistribution of Resources
• Engcobo: CCTV Project and Infrastructure
• Progress and Status of Police Facility Projects
•Vehicle Ratio.

Major General Stephanus Nelson, Head: Financial Services: South African Police Service (SAPS), said they are committed to reviewing the Resource Allocation Guide, precisely because they are extremely concerned about these discrepancies, particularly between urban and rural areas, as well as between rich and poor. It is quite concerning. See presentation document for progress report.

In the internal apportioning of funds for operational expenditures, inputs are requested from divisions / provinces. All inputs are consolidated and presented for consideration to an internal Finance Committee. The main aspects that are considered to arrive at operational expenditures for divisions / provinces, include: strategic operational priorities embedded in policy documents, such as the National Development, MTSF, JCPS, Ministerial priorities like Back-to-Basics; analysis of baseline operational expenditures, which include function shifts; specific requests from divisions / provinces for new or intensified needs. Upon approval by the National Commissioner, allocation letters are provided to the divisions/provinces, which apportion and cascade further to stations.

The Engcobo Close Circuit Television (CCTV) Project was initiated on 1 June 2018. 25 Cameras were installed at strategic areas in and around the station. Cameras are monitored on a 42” monitor, as well as on PC screens. There will be a laptop for remote viewing when network capacity is upgraded, as well as a temporary Community Service Centre (CSC). The project was concluded on 10 June 2018. Water and electricity is provided at Engcobo police station.

The status of the ratio of personnel to vehicles on 31 July 2018 is 4.07:1. One Mobile Community Service Centre (CSC) was issued in 2016/17, 14 Mobile CSC units issued were issued in 2017/18. In 2018/19 15 chassis cabs are planned for order. The distribution will be determined by the National Commissioner.

Discussion
Ms B Engelbrecht (Gauteng, DA) thanked the presenter for a detailed report. On the first undertaking, a lot of detail was given about background financial aspects but there was no reply about the undertaking by the Minister. The report spoke about reviewing the resource allocation, and talks about a first phase that will be done. Exactly when will this be completed because this undertaking was made two years ago in 2016? How far is the review of the resource allocation, and when will the first phase take place and when is that completion date? Also what development has taken place to improve police access in rural communities?

Ms G Oliphant (Northern Cape, ANC) asked why there are no CCTV cameras in police stations because it is easy for criminals to enter police stations without being noticed.

Ms T Mokwele (North West, ANC) noted that most strategic positions in the Department of Police the CFOs and acting CFOs are white people. She asked if black people are not capable of holding such strategic positions.

Ms Mokwele asked if the Department’s plan for prioritization of resources is ongoing or not because it seems the Department is not yet ready to report on the implementation of the undertaking made by the Minister two years before. This report only talks about things that will be implemented in future. She requested a detailed report with timeframes to allow them to measure the progress on what needs to happen.

Ms Mokwele asked the Minister why the Department plan is reactive rather than proactive in combating crime, which is the main objective of SAPS. There is no plan which tells them that in 15 to 20 years crime in South Africa will be reduced by a significant percentage. SAPS is reactive because it only reacts when something happens.

The Chairperson suggested that Ms Mokwele request for a proactive combating crime plan is not out of order but perhaps this can be submitted to the Chairperson of Select Committee on Security who is present in this meeting as this Committee is only looking at the specific undertakings promised by the Minister

Minister Cele replied that their Acting CFO is a young black man but he is suspended because of ill doing, including his involvement with the VFS Mutual Bank.

Minister Cele replied about combating crime, Ms Mokwele has limited the objectives of SAPS because the objective is not just to combat crime but in terms of the Constitution is to prevent, combat, investigate and make sure that all the inhabitants of South Africa are safe, and enforce the law. Therefore, that is what the South African constitution tells them and they also expand that through the police legislation. There are lot of plans that are there of prevention, there are lot of plans that are there of combating, and even if they have passed that they investigate what she calls reaction, which is a constitutional obligation that they do it. So, even if the Committee invites them to come up with those plans they will be happy to do so.

Lt Gen Nobesuthu Masiye, Head: Visible Policing, replied about how far they are in completing the review of the resource allocation guide. They have started with the resource allocation review. However, they did not implement deployment to the lower levels yet. They are still consulting with the stakeholders in SAPS before they can consult with SAPS members who may be affected when they deploy at the lower levels to capacitate police stations in both urban and rural areas.

Ms Masiye replied that all police stations will in future be installed with CCTV cameras. However, they are working on a prioritized list of police stations. The prioritization list was done by the provincial commissioners based on the threat they were experiencing at all police stations. They will be moving on a small scale until they have finalized all the police stations. Currently, they are in the processes of ensuring that all the requirements are there and they will be publishing a contract tender so that companies can be afforded a chance to tender for SAPS to ensure that the first bunch of police stations are prioritised and CCTV cameras are installed in those police stations.

Ms Masiye replied about the prioritization of human and technological resources at identified police stations. They have capacitated the Engcobo police station with human resources and the station commander post was upgraded. All the strategic posts like the strategic commander and human resource commander posts had been filled.

The Chairperson thanked the Minister and his delegation for the presentation and responses.

Deputy Minister of Economic Development Progress Report on Undertakings
Deputy Minister of Economic Development, Madala Masuku, mentioned the undertakings made during the policy debate on the Economic Development budget on 3 May 2016. These included strengthening support to provinces to unblock constraints to economic development and unlock funding for economic development programmes. He spoke about the alignment of the Provincial Annual Performance Plans with the Medium-Term Strategic Framework (MTSF). All provinces have concretized their plans and are now canvassing funding and investment for their strategic projects to realize growth and employment objectives. He gave a report on the economic activities of each of the nine provinces (see document).

IDC Investment in the provinces was outlined and the number of jobs created:
Gauteng in 2015/16 was R3 414m : 1 739 jobs and 2016/17 R4 932m : 6 345 jobs.
Eastern Cape in 2015/16 was R785m : 1 963 and 2016/17 R2 065m to 2 423 jobs.
Western Cape in 2015/16 was R1 440m : 1 086 and 2016/17 R1 606m : 829 jobs
Mpumalanga in 2015/16 R408m : 2 107 and 2016/17 R2 182m : 4 060 jobs.
Free State in 2015/16 was R658m : 1123 and 2016/17 R300m : 363 jobs.
KwaZulu-Natal in 2015/16 was R2 448m : 1 445 jobs and 2016/17 R347m : 2 419 jobs.
North West in 2015/16 was R225m : 370 and 2016/17 R103m : 323 jobs.
Northern Cape in 2015/16 was R1 159m : 973 and 2016/17 was R1 771m : 641 jobs.
Limpopo in 2015/16 was R5 172m : 6 712 and 2016/17 R1 896m : 3 478 jobs.

Highlights of the Infrastructure Projects for 2016/17 were provided for each province (see document).

Interventions to empower youth were discussed and the Youth Employment Accord (YEA) initiative. Details were provided about the Adopt-a-TVET College in Mpumalanga. In May 2015, Minister Patel had set a five-year target for the Industrial Development Corporation (IDC) Youth Funding of R5 billion in funding to youth-empowered businesses. In the first three years the IDC has approved R4.2 billion in funding to youth empowered businesses, and is on track to exceed target. In the past 12 months, the IDC approved R986 million in funding to 43 youth empowered businesses, and in the past 5 years, funding to youth empowered businesses has created and saved 7 158 jobs. In the next three years the IDC is targeting a further R3 billion in funding to youth empowered businesses.

Deputy Minister Masuku said in conclusion significant progress has been made in relation to the integration of work across sphere of government. Concrete plans are in place in clearly identified economic areas/sectors. Government is beginning to link its plans to budgets. National government is using local and provincial levels for planning but more work still needs to be done. EDD has begun to identify spatial projects that will constitute economic precincts for stimulation of the economy in South Africa. EDD is participating in IUDF, IMCs and other government wide planning and coordination committees/structures.

Discussion
Ms Engelbrecht thanked the Deputy Minister for the intensive report. She asked what the biggest economic constraints EDD has encountered as a department and what specifically they have done to reduce those constraints.

Dr H Mateme (Limpopo, ANC) asked what type of jobs are those as indicated in the report because she cannot find the correlation between the money spent and the number of businesses and jobs created. Some provinces have more money but few businesses and few jobs. Other provinces have less money but more businesses and more jobs. Why is there no correlation here?

Ms Mokwele referred to what had been allocated to provinces in slide 15 and asked them to explain the discrepancies in the numbers. Does EDD have a monitoring tool after money has been allocated to provinces to measure progress in economic development projects because some projects are used to loot money? On EDD interacting with TVET colleges, how does the Department ensure that local people benefit from companies that do business with government to ensure that skills are transferred to local people. She asked the Deputy Minister to move out of Mpumalanga and concentrate on other provinces.

Ms Oliphant asked if government has a programme for stokvels because stokvels work for those who want to save money.

Mr S Mthimunye (Mpumalanga, ANC) noted that some years back stokvels came together and established a bank. He does not know what happened to that bank. Stokvels need to be encouraged.

Deputy Minister Masuku replied about unblocking economic constraints say the economy is worrisome with concerns about policy certainty and corporate governance. It should be recalled that the President has set up a committee to drive business confidence and to interact with investors inside and outside the country. At the same time the Minister of Cooperative Governance is interacting with municipalities looking at best practice, addressing red tape, corruption, strengthening corporate governance and planning at local level. There are interventions coming from Cabinet. Cabinet is mobilised to be able to start grouping themselves on how they should assist local government in a structured and very focused manner to identify key items needed relating to electricity and water supply and other matters. They are also addressing other factors that affect economic development such as administering of prices - whether the export authority is charging correctly to prevent constraining the movement of goods, and what laws need changing to address these challenges.

Deputy Minister Masuku said two important events are coming soon in October, one is the Job Summit and the other is the Investment Conference. There are committees currently working on those two events and even working at the local level and interacting with industry to say collectively what it is they need to do to get themselves ready for these two events. Therefore, when they go to the Job Summit and the Investment Conference they will have a blueprint that identifies the public and private sector moving together.

The Deputy Minister replied about the lack of correlation between fund allocation size and the number of projects and employment created. EDD has identified what areas they are spending money on that gives them more traction and those areas that do not. Based on the discussions it appears that more money will be going to agriculture because the value chain gives bigger volumes. Also more money will be going to small business development and local industry because those industries give bigger volumes. They will also be looking at more intensive industries. If they look at how much they put into the motor industry compared to how much they put in agriculture there is a disparity, yet the motor industry is doing less.

Development in technology is important and the focus is on young innovators. Young people are coming with start-ups and most of them are technologically advanced. This gives them more traction, more money but the number of people that are participating are smaller.

Deputy Minister Masuku spoke about monitoring, saying that the development finance institutions (DFIs) are sharp, business oriented and focused. For other programmes such as infrastructure in government one has the Presidential Infrastructure Coordinating Commission (PICC) performing differently. The Department of Performance Monitoring and Evaluation is actually intensifying its monitoring. It has already started in North West to monitor government work. 

The Deputy Minister replied about the monitoring of looting that the Presidency has already started intensifying this with Minister Dlamini-Zuma doing that. He said their major focus in the TVET colleges is to get industry involved and to know that TVETs are their own colleges because the production of capacity is necessary and they have to influence the content. They do not want to hear companies talking about retrenchment because they are thinking of employing a new technology. Government is saying that industry must influence the curriculum, it must allow exposure of educators and students to the industry, they must provide resources to bring in the new technology they use. They need companies to come in and assist the TVETs.

Deputy Minister Masuku replied about stokvels, saying they were invited to Umhlanga in KZN to look at spaza shops which were closing down and what the challenges were there. They have identified a few things that cause the closing down of spaza shops and one of them are the malls which are being developed in the townships. These malls cause the downfall of spaza shops. There are also foreign nationals who come in and rent a shop and bring prices down to the detriment of spaza shops. What they have realised is that some of the spaza shops were owned by stokvel members. They link their stokvel to the business and the intention of the stokvel is to focus on the business and maximize its profits. At the end of the year they buy groceries for each member of the stokvel. Government will be looking at the stokvel and see how government can assist in developing a bank for the stokvels so that the money that is generated can circulate amongst the community where stokvels are operating. They will have continual engagement with the stokvels so as to develop a relationship that will generate economic growth within the community.

The Chairperson thanked the Deputy Minister for the presentation and responses

The meeting adjourned.