Overview on challenges & entities reporting to Departments

Higher Education, Science and Innovation

21 August 2019
Chairperson: Mr P Mapulane (ANC)
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Meeting Summary

The Department of Higher Education and Training (DHET) gave the Committee a wide-ranging presentation on the programmes, performance, opportunities and challenges of the various entities in its portfolio. It covered the activities of the directorates dealing with universities, technical and Vocational Education and Training (TVET) colleges, Community Education and Training (CET) colleges, examinations and assessments, infrastructure programmes, skills development and funding.

Members raised questions about the Bachelor of Technology (BTech) being phased out, how student accommodation challenges were being addressed, the fee regulation framework, the national plans for both skills development and post-school education and training, the role of student representative councils (SRCs), the inclusion of African languages in academia, and the disparities in funding allocated to universities.

Concerns were raised about universities under administration, budget cuts, CET funding, corruption and infrastructure challenges at TVET colleges, and the alignment of projected student enrolment numbers with available funding and accommodation.

The Department of Science and Innovation (DSI) presented an overview of itself and eight of its entities – the Council for Scientific and Industrial Research, the Human Sciences Research Council, the National Advisory Council for Innovation, the Academy of Science of South Africa, the National Research Foundation, the SA Council for Natural Scientific Professions, the SA National Space Agency, and the Technical Innovation Agency.

Funding challenges were an overarching issue for the DSI and its reporting entities. However, the entities still had various achievements and promising initiatives to report. Due to time constraints, the Department’s human resources (HR) matters could not be discussed. It was agreed that these issues would be dealt with at a future meeting. 

Meeting report

Mr Gwebinkundla Qonde, Director General (DG): Higher Education and Training (DHET), said the Department would be presenting on seven areas, but each programme was lengthy and therefore it would focus on four areas.

DHET presentation on Universities

Mr Lucian Kearns, Acting Chief Financial Officer (CFO), DHET, said the purpose of the University Education branch was to support and monitor the development of a quality higher education sector in South Africa. Its function was to build capacity in and for the university system through staff, student and programme development. It managed public higher education planning, funding and expansion , supported and monitored institutional governance and management, and provided sector liaison services. It developed higher education policy, supported research, and regulated the private higher education system.

The strategic focus of the branch was:

  • Effective implementation of the new bursary scheme for poor and working class students, and oversight of the National Student Financial Aid Scheme (NSFAS).

 

  • Policy development linked to the additional student funding in the system, and the need to regulate fees (student funding policy; fee regulation framework).
  • Capacity development in universities to promote quality, success and transformation (focus on students; staff; curriculum / programmes / institutions)
  • Partnerships (international and local) for the development of higher education.
  • Effective oversight of the utilisation of earmarked grants (monitoring of the system, ensuring accountability, effective disbursement of funds).
  • Implementation of the macro infrastructure framework and implementation of the Infrastructure Development Support Programme.
  • Implementation of the Human Development Index (HDI) development programme.
  • Central Applications Service (CAS) development.
  • Improved governance of the system.

Mr Kearns went through what each chief director (CD) was responsible for.

Chief Director: University Planning and Institutional Funding:

The CD was responsible for the enrolment plan (2020-25); the Higher Education Qualification Sub-Framework (HEQSF) alignment process and the last date for enrolling students on non-aligned programmes; the Macro Infrastructure Framework (MIF) and the Infrastructure Support Programme (IDSP); the Student Housing Infrastructure programme; and the establishment of Agricultural and Nursing Colleges as Higher Education Colleges.

Mr Kearns said progress was being made, more so with nursing colleges, as there were challenges with agricultural colleges.

Chief Director: Institutional Governance and Management Support CD responsibilities:

The CD was responsible for the National Plan for Post School Education and Training (NPPSET), which sets out the goals, objectives, outcomes and strategies for improving the PSET system to enable the development of skills required now and into the future; the National Student Financial Aid Scheme (NSFAS), which has been under administration since August 2018; and the governance and management of universities, including the University of Fort Hare and the Vaal University of Technology, which were currently under administration.

Chief Director: Higher Education and Policy Development and Research

The CD was responsible for the Department’s policy on African languages in higher education, and the internationalisation of higher education; the development of new policies, and arranging academic forums and conferences; assessing the state of transformation in the education system through the Transformation Oversight Committee (TOC); the development of a transformation guidebook which would serve as a tool to assist transformation practitioners and higher education transformation in general; and the development of a transformation charter framework for the system

Chief Director: Teaching Learning and Research:

The CD was responsible for the University Capacity Development Programme (UCDP), which was the umbrella programme being implemented to support universities to improve student success, develop staff and undertake innovative curriculum and programme reform. The programmes falling under this umbrella include the PSET Research Chairs Programme; the Entrepreneurship Development in Higher Education Programme; the Teaching and Learning Development Capacity Improvement Programme; the International Scholarships Programme; the Nurturing Emerging Scholars Programme (NESP); the New Generation of Academic Programmes (nGAP): the Existing Academics Capacity Enhancement Programme (EACEP): and the  Higher Education Leadership and Management Programme (HELMP).

 

 

Technical and Vocational Education and Training Colleges

Ms Gerda Magnus, Acting Deputy Director General: Technical and Vocational Education and Training (TVET) Colleges, DHET, said that in essence, the purpose of the branch was to plan, develop, implement, monitor, maintain and evaluate national policy, programmes, assessment practices and systems for these institutions.

Functional areas were:

  • Programmes and qualifications.
  • National examinations and assessment.
  • Systems planning and institutional support.
  • Financial planning.
  • Special projects.
  • Building development and maintenance -- this was a shared unit between Community Education and Training (CET) and TVET Colleges.

The Department had regional offices. In 2015, community colleges went from being a provincial competence to becoming a national competence, and in this process six regional offices were created.

During the 2019/20 medium term expenditure framework (MTEF) period, the branch would focus on the following strategic initiatives such as improving systems for effective examinations, revising the TVET funding norms, developing CET Act regulations, ensuring the provision of reliable management information and statistics on TVET college performance, and improving the academic performance of TVET colleges

Ms Magnus provided details of the responsibilities of the Chief Directors in this branch of the DHET.

CD: Programmes and Qualifications

In 2018, the Pre-vocational Learning Programme (PLP) was rolled out for the first time in eight pilot colleges, and was followed by the national roll-out in 2019 at 47 colleges. The aim of the PLP was to strengthen the pipeline of students enrolling in TVET programmes so that they completed their studies in shorter times.

  • Over 30 National Technical Education (NATED) subject curricula were updated.
  • Several partnership agreements were put in place, with key strategic partners to strengthen and deepen curriculum delivery in colleges.
  • An admissions policy for TVET colleges was recently gazetted for immediate implementation.
  • Standardised allowances for TVET students was implemented in 2019.
  • A task team was currently in place to produce a policy on disabilities.
  • Guidelines for student governance/ Student Representative Councils (SRCs) had been approved for implementation in colleges, which were aimed at reducing conflict and enhancing conflict resolution.

Proposals for the resuscitation of the South African Further Education and Training Student Association (SAFETSA) structure were already under way

Programme and qualifications challenges included inadequate expertise in the TVET sub-system to perform curriculum development functions. The planning and implementation of occupational qualifications in TVET colleges was difficult, for various reasons. A data-based integrated skills planning and funding system would help give traction to a more robust TVET system. The National Skills Fund (NSF) funding had been secured to drive some key curriculum areas that were aligned to government priorities, such as renewable energies, information communication technology (ICT) and software production, and the digital economy. However the recruitment of curriculum specialists had delayed implementation, and this was receiving urgent attention

The formulation of the colleges’ bursary rules and guidelines had become increasingly difficult against many competing student demands for financial support in the form of allowances. Compounding this was the poor administration of bursaries by some colleges, and poor capacity of NSFAS to deal with TVET colleges.

Poor capacity at regional office level militated against providing hands-on support to teaching and learning in colleges. Such efforts from the national office had neither the desired reach, nor the type of specific academic interventions required in each of the poor performing colleges and campuses

Ms Magnus said the emergence of the fourth industrial revolution had motivated several key stakeholders to show an interest in the skills developed in TVET colleges. Discussions already under way between the DHET branches showed promise of paving the way for a more integrated approach to the planning of responsive programmes to be offered at TVET colleges. The finalisation of the admissions policy was intended to improve both the enrolment process in colleges to make them more efficient, as well as to prevent students from accessing colleges only for the allowances provided through the bursary.

There were some very good practices at TVET colleges around student support services, and teaching and learning that could be replicated at other colleges through a system of partnering and support. This had already started on a small scale. The intention was to use this approach to build a critical mass of expertise within the TVET college system.

CD: Examination and Assessments

This directorate conducted state of readiness monitoring across six regions, and 15 campuses were visited. The sampled campuses demonstrated the capacity to manage credible examinations. They had basic requirements such as strong rooms, storage rooms, suitable classrooms, computers labs, qualified lecturers and security personnel, and IT specialists. Members of the National Examination Irregularities Committee had been appointed, and the regulations pertaining to the conduct, management and administration of assessment for the National Certificate Vocational (NCV), and the General Education and Training Certificate (GETC) development, had been finalised and were ready to be gazetted for public comment.  

The Department, in collaboration with Government Printing Works, had introduced automation of printing and packaging of question papers, with no human intervention, and this had significantly improved the security of question papers. The leakage of question papers had been eliminated since the April 2018 examinations to date. The establishment of nodal and distribution points ensured that question papers were delivered to private colleges on day of the writing.

The Department had intervened in the reduction of the certification backlog, and a total number certificates that were processed for Quarter 1 of 2019/20 amounted to 77 517 certificates. The credibility of examinations had improved significantly and all public examination centres that participated in the April 2019 engineering examination had released their results in accordance with the management plan. The Executive Council of Umalusi had applauded the Department for managing a successful and credible examination.

Ms Magnus referred to some examination and assessment challenges.

She said the legacy IT system was managed by the State Information Technology Agency (SITA), and the system was not able to reconcile student records across examination cycles, thereby leading certification backlogs. Some centres did not submit the marks for Internal Continuous Assessment (ICASS) and internal examinations on time, and this led to late resulting and certification. This problem was widespread in the private colleges

Another challenge was the management of private colleges, which required additional security and dedicated examination personnel to conduct resident monitoring in order to contain irregularities that were prevalent in most private colleges. There was also a lack of capacity to manage examination and assessment in regions. Extra capacity was required to beef up the skeletal personnel in the regions to strengthen the conduct and management of examinations

Ms Magnus said implementation of regulations pertaining to the conduct, management and administration of assessment of the NC(V) would promote the credibility of examinations and enhance public confidence in the system. There had been development of an integrated examination information technology system by an appointed service provider. Substantial progress had been made with modules for access and security; student management; examination centre management; payments; results and certification; timetables, examination preparation and irregularities. The new system would address the certification backlog and students would receive their results and certificates on time

CD: Systems Planning and Institutional Support

Ms Magnus highlighted the following aspects of systems planning and institutional support:

  • All TVET colleges had Ministerial appointment in terms of section 10(4)(b).
  • 49 TVET colleges had completed processes of advertising vacancies for section 10(6) council members and were now in the process of selecting the new suitable candidates.
  • Intervention measures had been instituted against all matters that impacted negatively on effective teaching and learning through investigations at several TVET colleges.
  • A number of colleges had undertaken international educational trips aimed at strengthening TVET college partnerships in the past 12 months. A report had been compiled for the attention of the Minister.
  • A number of TVET branch officials from national and regional offices of the TVET branch had also undertaken international trips in the past 12 months, and a report had been sent to the Minister.
  • An unqualified audit opinion had been obtained from the Auditor General (AG) in 2016 and 2017 for student datasets reported to the Technical and Vocational Education and Training Management Information System (TVETMIS)

Challenges included the introduction of new nomination and selection measures, which had created delays in the process of appointing council members. Capacity and expertise was required for conducting investigations at colleges. Colleges were reluctant to adhere to submission due dates and to comply to the international travel policy document. The new strategic planning cycle, with its emphasis on performance and implementation, required change of mind-set in the college sector. Integrity of data remained a focal point -- both in the TVET Management Information System (TVETMIS) and in performance reports. Inaccurate or wrong data was still being declared by principals

Opportunities for systems planning and institutional support included the implementation of a standard process on enrolment, which meant online applications, selection and admission in line with admission policy, registration and enrolment management. Regional managers would be requested to assist/intervene in the process of appointment of Council members in terms of Section 10(6), and the Department would follow-up with colleges regarding their Council appointments regularly. The Department would finalise the development of the College Council Handbook, and would distribute Council induction manuals and workbooks to regional offices for further distribution once regional induction workshops dates had been confirmed. Remedial measures were being taken to restore effective teaching and learning in some colleges through the appointment of acting principals or administrators. Reports received from colleges and officials who undertook international trips in respect of partnerships reflected a positive impact of the international partnership relationship with the Branch

CD: Financial Planning

The Department was receiving a Capital Infrastructure and Efficiency Grant (CIEG) allocation from National Treasury (NT) aimed at addressing infrastructure maintenance and the repair backlog at TVET colleges

The baseline allocations over the MTEF) were:

  • 2018/19 - R1.3 billion
  • 2019/20 - R1.484 billion
  • 2020/21 - R1.647 billion
  • 2021/22 - R1.737 billion

To date R1.628 billion had been allocated to all 50 TVET colleges for maintenance and repairs. Funds had been transferred to separate interest-bearing bank accounts, and the colleges had appointed project managers or service providers to manage the capital projects. The MTEF allocation highlighted an increase of TVET college direct transfers (including NSFAS tuition) of R800 million over the period. This was based on the commitment made by the government to phase in “fee-free education” based on available resources. It must be noted, however, that there was still a TVET funding shortfall of approximately R635 million in 2020/21, R568 million in 2021/22 and R645 million in 2022/23. This shortfall would gradually disappear as resources were made available by the state, but TVET enrolment was capped

The Department had developed 29 financial policies for college councils to adopt and/or adapt, and the colleges had to submit statistics on the adoption of policies -- resolution/s had to be submitted as evidence of their adoption. The recommended policies were accessible on the DHET portal

The Department was encountering the following financial planning challenges:

  • CIEG funds appropriated for repairs and maintenance of TVET colleges were in some instances utilised for college operational purposes and the compensation of employees (CoE). The Department enforces disciplinary actions against managers of offending colleges.
  • TVET colleges were required to report quarterly on the utilisation of CIEG funding by attaching bank statements that correspond with the balance as reflected in the quarterly expenditure report. Colleges were not attaching bank statements when reporting
  • A low expenditure rate on the allocated CIEG funds by colleges. Currently only 2.7% (R39.765 million) of the approved work packages from the maintenance plans had been spent.
  • Colleges were struggling to compile maintenance plans due to lack of capacity
  • TVET enrolments had been capped at 664 748, as the required 80% funding level had not been achieved

The Department said that the maintenance and repairs of TVET colleges through CIEG funds would allow for well renovated colleges that would make the colleges higher education institutions of choice. Well refurbished colleges would create an enabling environment for improved teaching and learning. The CIEG allocation to colleges would enable college management to manage regular maintenance to improve the structural integrity of college infrastructure. Revitalised and well equipped colleges would limit student unrest and strikes. TVET colleges were permitted to establish or increase ablution facilities where they were required. Funds could also be utilised for other basic urgent needs, such as disasters,or water and electricity supplies.

CD: Infrastructure Development and Maintenance

Nine new campuses sites were under construction and scheduled for completion in 2020. These were at Sterkspruit, Aliwal North, Graaff-Reinet, Ngqungqushe, Umzimkhulu, Greytown, Msinga, Nongoma and Kwagqikazi. Contracts would be awarded for a further four new campus sites in 2019/20 in Balfour, Giyani, Nkandla B, and Vryheid. Construction would commence with a new campus site for Mitchells Plain in 2020.

Because of funding considerations, the project had been downscaled to fit R2.5 billion, with three sites being moved to other funding programmes. The cost to complete the remaining 13 sites was estimated at R370 million, and a National Skills Fund (NSF) application was in process. Progress was being affected by civil disruptions (labour and procurement) and escalation in costs due to delays.

The approach to providing student accommodation was based on the Treasury prescripts for public private partnerships (PPPs), and “Build, Operate and Transfer” (BOT) over a capital recovery period of 20 or more years. There were three pilot initiatives at King Hintsa, Northlink and Lephalale for 3 000+ beds, while Northlink and Lephalale were in the feasibility study stage.

CD: Centres of Specialisation

The Centres of Specialisation address the demand for priority trades needed for the implementation of government’s National Development Plan (NDP) in general, and its National Infrastructure Plan (NIP) in particular. They contributed towards the building of the capacity of the public TVET college system to deliver occupational trade qualifications, with employers as partners

The Department had implemented newly developed occupational qualifications across 13 priority trades. These qualifications were supported by the National Occupational Curriculum Content (NOCC) to ensure that the implementation of the training of artisans consisted of highly integrated theory, practical and workplace components. There were 26 Centres of Specialisation in 19 colleges, upgraded to meet industry standards, with 55 facilitators employed and trained on the latest technology. Four employer organisations – the Retail Motor Industry (RMI), the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the Institute of Plumbing South Africa (IOPSA) and the South African Institute of Welding (SAIW) -- were assisting as occupational team conveners. 130 employers were participating, and 797 apprentices had been recruited.

Challenges with the programme included aligning the Sector Education and Training Authority (SETA) grants with contracting and payments to employers. In addition, high wages limit the participation of small employers, and learning material for occupational programmes was not yet available. However, there were opportunities to expand the Centres of Specialisation to more TVET colleges, more employers and recruiting more apprentices, and to align the programmes to the Fourth Industrial Revolution (4IR)

DHET: Skills Development Planning

The DHET said the purpose of the programme was to promote and monitor the national skills development strategy, to develop a skills development policy and provide a regulatory framework for an effective skills development system.

The key policy and legislative framework components were:

  • Skills Development Act
  • Skills Development Levies Act
  • National Qualifications Framework
  • Public Finance Management Act
  • National Skills Development Strategy;
  • White paper for Post School Education and Training
  • National Development Plan
  • National Skills Development Strategy III
  • Regulations on the SETA standard constitution

The framework covered the regulations for the conditions of service and appointment of Chief Executive Officers of SETAs; grant regulations regarding monies received by a SETA; the Council on Higher Education (CHE) work-integrated learning (WIL); implementing WIL at TVET colleges; the policy for a generic national artisan learner grant funding and administration system; publication of trade test regulations; and criteria and guidelines for the artisan Recognition of Prior Learning (RPL) policy.

The skills development directorate was made up of SETA Coordination and Artisan Development Directorates, as well as the National Skills Authority (NSA) and NSF branches.

CD: SETA Coordination

There were 22 entities reporting to the CD in terms of performance, planning and reporting.

The CD was responsible for the following functions:

  • Facilitating the development and implementation of SETA strategic plans, annual performance plans and sector skills plans.
  • Providing support to SETAs to implement various learning programmes including, but not limited to, learnerships, work integrated learning, apprenticeships etc.
  • Managing annual service level agreements between the Department and SETAs and monitoring their implementation
  • Developing and reviewing skills development legislation, regulations, policies, systems and guidelines.
  • Performing oversight on the Quality Council for Trade and Occupations.
  • Maintaining and updating an accurate and accessible organising framework for an occupations list.

Key challenges included meeting the targets of some SETAs, governance challenges at some SETAs, and improving SETA audit outcomes.

The main priorities included the implementation of the National Skills Development Plan (NSDP) by 1 April 2020, and finalising and aligning the SETA strategic plans (SPs) and annual performance plans (APPs) with Government’s MTSF priorities; appointing SETA Accounting Authorities, their chairpersons and CEOs for the period 1 April 2020 to 31 March 2024.

The Service Level Agreement Framework would be reviewed to support the implementation of the NSDP, to deliver, amongst others, occupations in high demand, and support government initiatives such Job Summit agreements, Operation Phakisa; strategic infrastructure projects (SIPs), and the Public-Private Growth Initiative (PPGI), etc.

The Skills Development Act and SETA standard constitution regulations were in the process of being amended, with a clear directive for SETA Accounting Authorities to focus on oversight and governance whilst the SETA Chief Executive Officers and management focused on the implementation of the entities’ strategies and APPs

An independent assessor would be introduced at SETAs where there were financial and /or governance challenges, similar to the universities.

A panel of external experts would be appointed to review plans (sector skills plans, strategic plans, APPs) and quarterly and annual reports produced by SETAs, including where appropriate governance related reviews, with the intention of continuously improving quality

CD: Artisan Development

The CD was responsible for coordinating artisan development in the country, developing and implementing the artisan development strategy, regulations, standards, policies and guidelines, developing and implementing accreditation and quality assurance systems for artisan development providers, and coordinating World Skills South Africa in support of improving the quality of artisan development

Challenges included the funding of artisan development by the national fiscus, momentum with the decade of the artisan, and meeting the artisan development targets for 2030.

The priorities for artisan development were:

  • Alignment of the MOU between the Department of Public Enterprises and the MTSF.
  • Implementation of the automated Artisan Trade Test System (ATTS) which would be used by all accredited trade test centres to facilitate access to trade testing.
  • The first phase of the ATTS would be rolled out on 1 April 2020, which would target the legacy trade testing processes, resulting in improved credibility, quality and security of trade testing conducted nationally, as well as improving the turnaround time on national trade test applications and the certification process.
  • Rolling out of artisan recognition of prior learning (ARPL) as an access route to trade testing would be prioritised, noting the success rate of those tested through this route had been at 75.9% of 460.
  • Assisting TVET colleges with the implementation of ARPL and trade testing.
  • The following workshops would be prioritised inline with the Strategic Infrastructure Project’s (SIP’s) priority trades -- plumbing, electrical, bricklaying, boiler making and diesel mechanics. Indlela was accredited for the trade testing for the new occupational electrical trade.

National Skills Authority (NSA)

The NSA reported to the skills branch, but was responsible for managing the constituency in terms of their functions.

The functions the NSA was required to fill, according to the Skills Development Act, was to provide advice to the Minister in relation to various skills policies, report to the Minister on the NSDS implementation progress, liaise with SETAs and the Quality Council for Trades and Occupations (QCTO), consultancy work on various skills related policies, as well as other functions such as conducting investigations.

One of the NSA’s key priorities was to align its role with the NSDP. It would be restructured and refocused to play the monitoring and evaluation role of the SETAs. It would also provide of advice to the Minister, especially regarding the envisaged amendment of the Skills Development Act and new regulations aligned with the NSDP.

National Skills Fund

The National Skills Fund (NSF) was responsible for providing funding for skills development projects of national priority, as per NSDP, skills development projects for the achievement of the Skills Development Act (SDA) within the discretion of the Director-General, and activities to achieve the national standard of good practice in skills development, as determined by the Minister of Higher Education and Training

It was a catalytic fund which enabled government to drive key skills strategies as well as meet the training needs of the unemployed, non levy-paying cooperatives, non-governmental organisations (NGOs), community structures and vulnerable groups. It was a national resource which initiates as well as responds to national skills priorities.

Key challenges were the need to improve audit outcomes, strengthen monitoring and evaluation, and strengthen inter-governmental cooperation for projects in response to national skills priorities

 

Key priorities included:

  • Implementation and alignment of NSF interventions to the NSDP by1 April 2020. Priority would be given to the CET sector.
  • Finalising and aligning the NSF strategic plan (SP) and APPs with the government’s MTSF priorities.
  • Implementation of the business excellence model to support and improve effectiveness and efficiencies in operations, monitoring and evaluation, and innovation in skills development

Community Education and Training (CET)

The Department said the 2019/20 financial year marked the fifth year of existence of the Community Education and Training (CET) system. The mandate of the branch was informed by Section 29(1)(a) of the Constitution of the Republic of South Africa as well as the injunctions of the National Development Plan, in terms of which the government committed to increase youth and adult participation in CET programmes to 1 000 000 by 2030. In the past five years, the focus had been on building capacity of CET colleges by developing policies and putting systems in place to ensure functionality

The functions of the CET programme included:

  • Managing the delegated administrative and financial responsibilities, and coordinating the monitoring and evaluation function of the programmes.
  • Supporting management and councils, as well as monitoring and evaluating the CET system performance against set indicators.
  • Providing leadership in the development of CET college strategic plans and APPs.
  • Providing leadership for CET colleges to enter into partnerships for the use of infrastructure for college sites.
  • Setting up financial management systems and developing financial management capacity of CET colleges.
  • Managing and determining the fair distribution of funding to CET colleges.
  • Monitoring compliance with supply chain management prescripts, and the financial performance of the CET colleges.
  • Managing and coordinating curriculum development processes, and ensuring the development of quality learning and teaching materials.
  • Monitoring and supporting curriculum delivery and assessments in CET colleges.
  • Monitoring and supporting the development of lecturers

In 2015, 3 276 centres were integrated from the provinces and were then clustered into community college groups. The process was to test the efficiency of the managed areas to ensure that there could be consolidation. The outcomes for the National Plan for Post School Education and Training (NPPSET) were aligned with CET sector plan strategic objectives.

The Department had contracted the South African Institute of Chartered Accountants (SAICA) from 1 March 2018 until 28 February 2021, to provide financial management support to CET colleges. The support included the development and implementation of a financial management system for CET colleges, support with compiling the annual financial statements for the period 2015 to 2018, and placement of interim finance staff in colleges. There was collaboration with the South African Catholic Bishops Conference through the Catholic Institute of Education for infrastructure utilisation and offering of CET programmes, and a partnership with Project Literacy in implementing the CET sector plan. There was collaboration with the Department of Basic Education regarding the Second Chance Matric project.

Strategic areas of work to be implemented by the branch in 2019/20, including new initiatives, were:

  • Rationalisation and consolidation of the current number of centres to achieve quality and efficiency.
  • Developing financial management systems for CET Colleges so that they comply with the standards set in the Public Finance Management Act (PMFA) and its regulations.
  • Improving strategies for increasing access to, and success in, community education and training programmes.
  • Diversification of the CET college programme qualification mix.
  • Establishing and strengthening the capacity of the 54 pilot centres to pilot the CET concept.
  • Monitoring the implementation of governance policies by CET colleges, including their compliance.

2019 MTEF Programme 6: Funding and Financing

The Department said the programme was greatly underfunded. The programme had a total budget of R2.5 million for this year, R2.7 million for the next year and R2.8 million for the following year. When the branch wanted to change the direction of the programme, government had made funding available, but the branch still required additional funding

At the root of most of the challenges confronting the system was under-funding. The challenges manifested themselves in the following:

  • Lack of appropriate infrastructure for hosting centres and skills training.
  • Lack of adequate training, learning and teaching support materials.
  • Disparate conditions of service and benefits, with consequential labour instability,
  • Absence of the requisite human resource capacity to execute basic administrative functions and procedures.
  • Unqualified, under-qualified and inappropriately qualified lecturers.
  • Limited time-on-task, which compromised teaching, learning, training and development.
  • Inability to administer, manage and conduct CET examinations.
  • Disparate regional human resource (HR) capacity to support CET colleges.

 

Office of Chief Financial Officer

Mr Kearns gave a brief overview of the composition of the department, and its six programmes. These were:

Programme 1: Administration - Office of the Director-General and Departmental support functions;

Programme 2: Planning, Policy and Strategy -- Responsible for the development, implementation and monitoring of Departmental policies, international relations, legal services and the human resource development (HRD) strategy.

Programme 3: University Education -- Responsible for the university sector, NSFAS, CHE and national institutes for higher education.

Programme 4: TVET - Responsible for the TVET sector and examination services.

Programme 5: Skills development -- Responsible for the skills sector, including the national skills development strategy, skills development policy and the management of the skills levy to SETAs and the NSF.

Programme 6: Community Education and Training -- Responsible for the CET sector

The combined budget for the Department for 2019/20 was R89 billion. With the addition of the skills levy, it was R108 billion. Programme 1 (Administration) was allocated 0.51%, and Programme 3 (University Education) was allocated 82.02% of the budget.

Mr Kearns said the MTEF budget indicated that there was a budget cut, and it depicted how this cut affected the Department. The increase to the baseline of R120 million and the R260 million decrease to baseline were illustrated. He said in real terms the Department was short of about R140 million due the adjustments in baseline allocations.

Compensation of employees totaled R9.6 billion, goods and services totaled at R662 million, transfers and subsidies were R79 billion, and payments for capital assets were T12 million.  This amounted to R89.4 billion and with the skills levy of R18.7 billion, the grand total becomes approximately R108 billion.

The transfer payments were NSFAS R30.8 billion; public entities R261.4 million; Education, Training, Development Practices SETA R18.9 million; universities R42.3 billion; TVET colleges R5.5 billion; Community Education Colleges R148.7 million; Universities South Africa (Higher Education and Training HIV/Aids(HEAIDs) R18.7 million; National Institute for the Humanities and Social Sciences(NIHSS) R36.1 million; and Common Wealth of Learning and Indian Brazil South Africa(IBSA) R3. 8 million; making a total of R79.1 billion.

The Chairperson asked where the R42 billion allocated for universities went.

Mr Kearns said it was mainly subsidies paid to universities.

The Chairperson asked for clarity on the amounts transferred, and to which universities they were transferred.

Mr Kearns said he did not have the information on the slides, and the Chairperson asked him to continue with the presentation.

2019/20 Skills Levy

The skills levy was included in the budget as “direct charges”. This was a direct commitment from the National Revenue Fund. In the case of the skills levy, it represented the revenue collected by the South African Revenue Service (SARS) for the SETAs and the NSF. The skills levy was not categorised as normal voted funds, and may not be utilised for any other purpose. The skills levy allocation based on Treasury’s estimated collection trends, would amount to R18.8 billion for the 2019/20 financial year, with R15.006 billion from the SETAs and R3.752 from the NSF.  n; Total: R18.758 billion

2019/20 Budget

If the Skills Levy allocation was taken away from the R108 billion budget, the Department had a budget of R89.4 billion. If the transfers, CoE and earmarked funds were deducted, the Department remained with a budget of R602 million for its operational costs. The budget percentage for operational costs of the department was extremely small in relation to the entire budget.

The financial overview for 2018/19 showed that overall spending of the Department amounted to R72.924 billion. This had resulted in an under-spending of R200.3 million (0.27%). The under-spending would be surrendered to NT in accordance with the PFMA. The under-spending occurred in CoE, cost saving in operational activities, exchange rate savings with transfer payments, and unclaimed ad hoc grants by universities:

Mr Kearns said the financial challenges facing the Department were:

  • The limited Departmental baseline for normal operational activities (R602million). Tthe Department was consulting with Treasury on how to address the matter, as well as consider future budget cuts.
  • Current reliance on NSF for operations. It was engaging the Fund on exit strategies for operational funding.
  • A key risk remained non-compliance to legislative requirements.
  • Though drastically reduced, there were isolated cases of non-compliance to the 30-days payment requirement. This would be addressed by implementing an electronic invoice system.

The Chairperson asked for detailed information on enrolment planning, and differing costs of operating programmes offered, such as engineering and earmarked funds.

Discussion

Ms D Sibiya (ANC) said 200 000 new university beds had been mentioned, and asked how many beds there were currently and how many new beds there would be.

Regarding community education, she sought clarity on the new infrastructure at Nongoma and Kwagqikazi -- was this referring to two universities or one?

Mr W Boschoff (FF+) asked about the difference between universities of technology and academic universities. Was the BTech degree disappearing completely, or just certain ones? What was the status of the BTech degree? He said would it not make sense for universities of technology to be regarded as separate universities -- or was the amalgamated universities category more appropriate?

On the pipeline created for academics, he wanted to know if there were provisions for women who had been out of the working place due to maternity leave or child-caring, and wanted to return.

On community education, he asked if the initiative could come from the community, such as businesses saying they had specific skills they wanted to teach to community members. He asked if the initiative could come only from the Department, or if the community could create its own initiatives.

A Member asked if the CFO had calculated how much bank fees were paid. If his information was correct, this was the last year for registering for a BTech degree -- those students would continue, but new registrations next year would be for the Advanced Diploma. He asked why there was a move away from the BTech, and how this would affect those who currently had BTech degrees.

He asked for an update on the case of the NSFAS student who had been allocated millions of rands incorrectly.

He was concerned about the number of foreigners attending local institutions, and wanted to know much was being allocated to foreign students’ fees. He was not xenophobic, but concerned.

He hoped the Department would give details on the universities and TVET colleges under administration. He was also concerned about students who had written exams but had not received their results after several months.

Regarding maintenance and repair for TVET colleges, he asked if there were monitoring systems in place to ensure that those appointed carried out the work, and if they fitted the transformation agenda.

He asked for a breakdown of the 50 colleges that were given funds -- how much did each college receive, and was it value for money? Were the CET numbers not proportional to population sizes in the provinces?

Ms N Mkhatshwa (ANC) referred to the fee regulation framework, and asked if it mentioned a percentage, and how it took the “missing middle” into consideration. In the annual review, there had been about 360 000 students that were in the missing middle. She asked when the draft bill on Central Applications would be shared with the Committee.

On the accommodation crisis and collaborating with the Department of Transport to alleviate pressure by transporting students, she asked if there had been discussions.

On universities under administration, she asked what a sustainable solution would be to address these universities’ challenges.

On the appointment of an Administrator for NSFAS, and the Ministerial Committee of Inquiry, she asked for clarity as to when the appointments would be finalised.

What did the Higher Education Act mention in terms of participation in the university councils?

She said if African languages were to become a medium of instruction in universities, it had to be done correctly and there had to be collaboration between the Higher Education and Basic Education departments.

On the policy of internationalisation of higher education in the context of decolonisation, she said entrepreneurship development had been mentioned in the higher education programme, and wanted to know if efforts could be made so that students could practice their entrepreneurship at higher education institutions.

Regarding decolonisation and the African continent, she wanted to know if efforts could be made with other African states have discussions to bring about change.

Mr B Nodada (DA) asked how the Department supported private universities. On the BTech, he asked if it would be phased out completely and if programmes would be adjusted. He said BTech students did not get funding from NSFAS and if they did get it, it was only a portion of the funding. Based on yesterday’s presentation, it was indicated that there were certain levels of education -- where would Advanced Diplomas fall in terms of post-graduate and under-graduate?

He asked how the targets for future student enrollment and accommodation were aligned. There seemed to be a gap in terms of the goal for the number of students to be enrolled and available accommodation.

The absorption of agricultural colleges into the sector was very important.

On timelines, he asked when the NPPSET document would be finalised.

He said about R30 billion was allocated to NSFAS, and he asked what the sustainability of giving this funding, and the funding model used, was.

The University of Fort Hare was under administration, and he asked if he could have a background of what was happening there and what the key focus of the administration was. He believed there had to a push where previously disadvantaged universities must be held accountable for reporting, as a lot of money had been pumped into these organisations.

On the promotion of entrepreneurship in universities, he asked if there would be an undergraduate programme as well.

Since TVET colleges were under the DHET, what role did managers and bodies such as councils play?

There had to be a discussion around the curriculum. He wanted to know what the timelines around the TVET curriculum and its finalisation were. Once the curriculum was finalized, the focus had to be on the development of lecturers. He wanted to know what systems were in place to monitor lecturers in TVET colleges to determine their level of qualification, and timelines for developing their skills.

He was concerned about TVET colleges not using the new equipment they had, and lecturers being unable to teach or test students using this equipment.

On TVET allowances, he was concerned as it seemed TVET students did not receive the same amounts as universities, and he wanted to know what the plan to resolve this was.

He asked what the role of the SRCs at TVET colleges was, and whose responsibility it was to ensure they were representative.

He wanted to know who distributed funding, and if the money was sent directly to the colleges, or if it was to NSFAS. Who took responsibility for the payment of salaries, as salaries were paid but not student allowances at some colleges?

What were the timelines for ensuring that there was one system for TVET colleges so that certificates were not issued late and records were be kept?

He wanted to know if there were oversight mechanisms in place to check the disability friendliness of campuses being built, as many TVET colleges were not owned by the government and it was difficult to change infrastructure.

Mr P Keetse (EFF) referred to the previous day’s discussion on student representation, and said it was not correct for the Department to just assume all students were irresponsible just because they were young and could not correctly represent themselves.

He was concerned about so many of the officials at universities that were in acting positions, and the short terms of registrars. He was concerned at the situation at the University of South Africa (UNISA), where students could not re-register due to a lack of capacity. He was concerned about the requirements in the prospectus, such as higher grade for English, but without consideration of other languages. If this gave an advantage to white or English-speaking people, this was not fair and did not support transformation, as it excluded other language speakers. This had to be investigated so that it did not disadvantage students.

The problem with TVET colleges was corruption. Money was being spent on infrastructure and developing these colleges, but when Members went to these colleges they were a mess. In some cases money for infrastructure was taken to pay for services and workers. Where was the money that was supposed to be spent on renumeration? It was not a secret that TVET principals were looting funds. He said matters would not improve if the root cause was not addressed.

He said students did not aspire to go to TVETs, as they looked like dumping sites and were a mess, so serious action had to be taken.

On the composition of SRCs in TVET colleges, he said there was no structure for running SRCs in many colleges.

He said parents had to be informed and educated so that they could not be taken advantage of by TVET principals. An educated nation could hold colleges accountable.

He wanted to know who provided services to SETAs, and who owned them. There was corruption when it came to SETA delivery, and he asked who was monitoring these providers.

He said UNISA had to be summoned before the Committee due to their lack of capacity, which led to students being unable to register.

Ms J Maniso (ANC) said she was concerned about corruption in TVET colleges, and there had to be accountability. On the issue of 200 000 university beds, she asked for more information.

She agreed with her colleague, and wanted more oversights for TVET colleges.

Had any cases had been opened regarding financial irregularities?

On centres of specialisation, the report indicated there were challenges related to the contracting and payments to employers. She asked how this impacted on learners.  

On SETA challenges, she asked what was meant by governance challenges.

She applauded the Department for its skills development efforts at CET colleges. CET needed serious attention, as it was important and needed adequate resources.

Mr B Yabo (ANC) referred to the capacity challenges at regional offices which affected providing hands-on support to teaching and learning in colleges, and said if capacity was an issue, what was being done to address it? What did the capacity challenge entail -- was it administrative, or mainly teaching and learning issues?

He said money was not always an answer to a capacity problem -- capacity had to be developed and then further funding had to be given. Good leadership was important, and needed to be developed as well.

On TVET colleges, he said public funds could not be used as slush funds at the expense of required outputs. The lack of consequences and accountability could not continue.

He believed that a TVET branch was not substandard to a university branch, and its status had to be uplifted as skills development was important for the country’s future. South Africa was becoming a consumer nation and not a producer nation because it had not developed skilful workers or innovators. The regional offices had to be capacitated, as this challenge affected the entire country.

He wanted to see a breakdown of the money disbursed from the Department to the universities, as well as the money generated by the universities themselves versus the amount of money it took to sustain an institution. He believed that donor money was higher at previously advantaged institutions than previously disadvantaged organisations, and these matters had to be monitored to determine if there was a causal relationship between higher donations and outcomes.

Mr S Ngcobo (IFP) raised a concern about the CET programme. He believed that this was one of the most important aspects of the Department, but it lacked financial resources. He wondered if the lack of resources affected outcomes of the programme. If everything had been done to receive additional funds from sources but to no success, he believed the Committee would have to find ways of intervening to address the funding issues.

He wanted to know when the issue of the certification backlogs at TVET colleges would be addressed, as it was inconveniencing students.

The Chairperson said he also wanted more information about the appointment of the NSFAS administrator, and was also concerned about the TVET certification backlog. How was the Department going to address the backlog issue?

He said there seemed to be poor implementation of the infrastructure allocations at TVETs. What were the issues around this poor implementation, and what was the intervention plan? He wanted the allocated money to be spent, and not be sent back to Treasury.

What was the oversight work the Department was implementing to ensure the money allocated to SETAs and TVETs was used correctly? Was there an oversight body, and if not, why not?

On universities, had the implementation of the National Plan regime been mapped out? If not, how long would it take?

Regarding the 2020 student enrolment, he said one of the Chief Directorates had to be responsible. Year after year there were lots of problems about admissions and exclusions. Based on this, how effective was the planning on the back-end at universities?

He noted that UNISA had been experiencing lots of problems. He had received a letter from the Secretary General of the National Students Representative Council, and it would be marching to the Department on 23 August. It would demand equal funding for UNISA students, meals, transport and accommodation and incidental allowances.

The Chairperson said he wanted to know if there had ever been a forum where the Department had engaged with the leadership of UNISA, as engagement was important.

DHET response

Mr Kearns said responded on university funding, and said there was a funding framework which dictated how universities were funded. Every year in October, the Department engaged with universities to discuss projections for the next financial year. Another good source of information was the universities’ own reports which would depict what was coming from the DHET and what was self-generated by the universities.

It was common knowledge that the previously advantaged universities were receiving much more donor and private funding than the more rural or previously disadvantaged universities. A report was being created on the matter, but determining universities’ non-DHET funding did rely on university reporting.

On the BTech degree, he said it arose from the publication of the HEQF which replaced the first higher education framework, which had a whole range of qualifications that could be offered by institutions not governed by a qualifications framework. Once the HESQ qualification framework came into place, all providers of qualifications had to align and could only offer qualifications within the framework. He said it was not just the BTech, but also other qualifications that were being discontinued. The Advanced Diploma was replacing the BTech in terms of purpose. Even though the BTech would be phased out, it would still be recognised, as was the case with all legacy qualifications.

He said there were three types of Universities -- general universities, universities of technology, and comprehensive universities that were a combination of both general and universities of technology. The notion of rural and urban was a traditional characterisation that allowed the Department to understand different contexts. The notion of HDI was also a different kind of categorisation. Universities’ historical pasts had to be taken into account.

He said money was not the problem, as the Member had said, and that was why it was not an Historically Disadvantaged Institution (HDI) grant, but and HDI development programme which was about building capacity for the utilisation of the funding, so that a difference could be made.

Summoning NSFAS would be the best option for interrogation. The DG would speak about the appointment of the NSFAS administrator.

The question about international students was a matter of concern. According to the data, the actual percentage of foreign students in universities at the under-graduate level was low, as 95.4% of students were South African. There was a protocol in place with the South African Development Community (SADEC), where SA had a role to play.

The Fee Regulatory Framework was a work in progress, and a study was being undertaken across the higher education system to determine what it meant to produce graduates in different contexts and programmes. He could not confirm what the percentage was yet, as it was still at the beginning stage.

On the inclusion of the “’missing middle,” it was a work in progress.

Regarding language as a selective mechanism, he acknowledged that language did play a role, as language competence was used as a proxy for academic competence, which should not be the case. The language and education policy would be about addressing that and making more possibilities in higher education available. The Department would have to robustly engage around the issue of language and education and its implementation in higher education, to ensure barriers were removed, not just in terms of access but success as well.

On how the DHET supported private universities, he said private higher institutions were not allowed to call themselves universities and had to be called private higher institutions. The country had a high number of private higher institutions, and the DHET did not fund them, but did play a referee role in terms of regulations and required criteria. The amendments to the Higher Education Act that took place last year allowed private higher institutions to gain university status provided they met specific criteria.

On the BTech students and funding, he said funding was prioritised for under-graduate funding and first time qualifications, and the BTech was a postgraduate qualification to a certain extent, hence the lack of funding commitment. The issue of funding the post-graduate level needed to be addressed. and was one of the reasons why the number of South African students at post-graduate level was not as high as it ought to be.

The number of university owned beds referred to beds the universities were able to develop through state funding. At present, there were approximately 155 000 university-owned beds, and this did include private accredited spaces. The target was to more than double the number in the next ten years, and put in 200 000 more beds. There was substantial funding available towards this project that would come from the infrastructure and efficiency grant, but creating partnerships to allow for additional beds was also important.

The Chairperson asked for clarity on the number of beds.

Mr Kearns responded that 200 000 beds was more than a doubling what was currently in existence. The number of existing beds, plus the 200 000 beds, would make about 355 000 beds university beds against the projected student enrolment of 1.2 million. The number of beds would be about a quarter of the total enrolment, but the nature of higher education was not just contact education, but distance learning as well.

The Chairperson asked if the cost for the beds was known yet.

Mr Kearns responded that the Department had norms for what the costs would be, but not what the exact projection would be.

The Chairperson asked how much it would cost over the 10 year period.

Mr Kearns responded it could be calculated using norms. The beds had been priced on the basis of research conducted in 2010, where the Department looked at the capacity of institutions across the country. It had been established that only about 20% of the student population was housed in university-owned accommodation, and on that basis the Department had funded 100 000 beds. In 2017 there had been 103 000 beds, and the Department was now above 140 000 beds.

The question of funding was a challenge, as there were many Parliamentary processes to adhere to. As much as it could be said university funding was not enough, it still received the biggest tranche of the Department’s budget, and TVETs were grossly under-funded. As the Department went forward, it was important to consider how resources would be made available for the two critical sectors.

Mr Kearns said the decolonisation agenda was an approach to internationalisation and partnership for SA in Africa and the world. An agenda for regional partnerships had to be developed with a focus on African partnerships. International students were funded in the system the same way in terms of subsidies. International students did not benefit from bursaries, and were either funded by their governments or in their own capacity.

The National Plan’s finalisation was still being working on and being reviewed.

Referring to students from the diaspora in the country, the DG said according to the system there were 15 000 from the diaspora and 25 000 students from Zimbabwe. Due to the Southern African Development Community, similar status was given to students from the region’s countries. The only challenge was that SA students did not have an appetite to study in other African countries, and SA was on the opposite end as the recipient of students.

It was correct that UNISA had a number of challenges, and the Department was engaging to assist the institution. At the beginning of the year, schools had opened and there was issues due to students registering for a programme that was not registered on the SAQA database.

The Department had to assist the institution address the accreditation needs. The social work programme could not be assisted, as it was too late and the institute did not have the internal capacity for that programme. There were about four areas that required attention for the programme to be accredited. The number of teaching staff and teaching content for the programmes had to be addressed for accreditation.

On the management of institutions, he said that with the appointment of the current management, the push came from both the labour and the student components. Institutions had to take accountability for who they appointed.

Regarding institutions placed under administration, he said there was an Higher Education Act that made it very clear it was in response to a collapse of governance, poor financial management or irregularities in terms of upholding the principles of Higher Education which would then require the appointment of assessor to compile a report and then place institutions under administration.

The Department was looking at how African languages could become a language of academia, but the issue was funding, as funds were required to develop African languages for academia.

On the UNISA march, the Department said it always engaged with all stakeholders and it had engaged at UNISA in the beginning of year and issues had been resolved. The current concerns were around funding, but it had to be noted that UNISA’s funding model was different to other universities due to its distance learning nature. The Department would engage with UNISA.

The Chairperson said the UNISA issue would be dealt with another time.

He asked about academics from SADC countries who were taking over posts at universities.

The DG responded that the Department was engaging with institutions to address the matter to achieve a balance in terms of representation.

Ms Magnus referred to the question about Nongoma and Kwagqikazi, and said the projects had different purposes. One was a more technical campus, and the other was more business orientated.

On infrastructure allocations to TVET colleges, said the colleges received equal allocations for year one, which was about R27 million per college.

The Department did ask colleges for maintenance plans, and it was understood that some rural campuses had greater infrastructure needs than some of the more urban colleges. The Department wanted to understand what the needs were per college according to the maintenance plans, and perhaps in years two and three the allowances would not be allocated equally, but according to needs.

The Department was not involved in the procurement process at colleges. It wanted to see the maintenance plans so it knew where resources would be going, and to check cost estimates provided to achieve value for money. Once the plan was approved, the college could carry out its procurement processes. There was an existing procurement policy according to Treasury that colleges had to follow.

The Chairperson said unanswered questions had to be prepared in writing, and Members should propose areas that they wanted to engage in depth on, and the Department could then brief the Committee at the next meeting. Alternatively, the Department could forward unanswered questions in writing to the Committee.

Department of Science and Innovation

Mr Phil Mjwara, DG, Department of Science and Innovation (DSI) said the DSI would give an overview of its challenges, looking at its programme and broader white paper challenges. Information about the entities that reported to the ministry would also be given, as well as the challenges that they faced. The synergies or anticipated areas of collaboration between the DSI (including entities) and DHET would also be discussed. The CFO would provide the Committee with a financial briefing.

The DST and science and technology environment (STI) policy environment included:

  • The National Research and Development Strategy (NRDS, 2002);
  • The Ten Year Innovation Plan (TYIP, 2008-2018);
  • The White Paper on Science, Technology and Innovation (STI WP, 2019), which replaced the White Paper on Science and Technology, 1996;
  • A number of sector-based strategies, such as. the Advanced Manufacturing Technologies Strategy (AMTS) and the bio-economy strategy;
  • Strategies of STI-relevant strategies of other government departments, such as the Industrial Policy Action Plan (IPAP) and the National Skills Plan.

The policy mandate of the then Department of Science and Technology involved:

  • Coordinating the development and implementation of country-level science, technology and innovation (STI) policies.
  • Creating systems and structures to coordinate the STI-related work of government departments and agencies.
  • Developing measurement systems and undertaking analyses to improve the performance of the National System of Innovation (NSI). Every two years, the National Advisory Council of Innovation published statistics on the NSI, and there were a few indicators. A couple of weeks ago the latest report was provided, and it could be given to the Committee or presented by the entity.
  • Optimising the governance of the publicly-funded STI institutions reporting to the Department to support government’s priority outcomes.
  • Supporting the development of high-level STI human capabilities for South Africa.
  • Supporting the research system and emerging research areas.
  • Developing technological solutions and supporting innovation.

The Department had branches for institutional planning and support, corporate services, international cooperation and resources, research development and support, and socio-economic innovation partnerships.

Programme 1: Administration -- Represents all Departmental support functions, including the Office of the Director-General and the Ministry;

Programme 2: Technology Innovation -- Drives strategic research, development and innovation in space science and technology, energy, the bioeconomy, and the emerging and converging areas of nanotechnology, robotics, photonics and indigenous knowledge dystems (IKS). It promotes the realisation of commercial products, processes and services from these RDI initiatives.

Programme 3: International Cooperation and Resources (ICR) -- Develops, promotes and manages international partnerships that strengthen the NSI and enable an exchange of knowledge, capacity and resources between South Africa and its international partners, with a focus on supporting STI capacity-building in Africa, and supporting South African foreign policy through science diplomacy.

Programme 4: Research Development and Support (RDS) -- Provides an enabling environment for research and knowledge production that promotes the strategic development of basic sciences and priority science areas, through science promotion and human capital development (HCD), and the provision of research infrastructure and relevant research support, in pursuit of South Africa's transition to a knowledge economy.

Programme 5: Socio-economic Innovation Partnerships (SEIPs) -- Enhance the growth and development priorities of government through targeted S&T-based innovation interventions and the development of strategic partnerships with other government departments, industry, research institutions and communities.

The DST strategic plan, 2015 to 2020, was structured around five strategic outcome orientated goals. These were a responsive, coordinated and efficient NSI, increased knowledge generation, human capital development, using knowledge for economic development, and knowledge utilisation for inclusive development

The formation of the new DSI would facilitate the implementation of the 2019 White Paper on STI, thereby helping to increase the positive impacts of STI on society, the economy and the environment. The merger of the two former ministries (Higher Education and Training, and Science and Technology) would enable a step change in the expansion and transformation of the human capabilities of the NSI and SA.

Challenges facing the DSI include:

  • How, within its current budget, to take the additional innovation mandate on board.
  • How to coordinate and align innovation budgets across government.
  • How to unlock the innovative capacity of other government departments and play a strategic innovation role across government—for example, on agenda setting, innovation instruments, monitoring and evaluation (M&E), and international cooperation.
  • How to upscale its science and technology initiatives to make the required impact on government, society and industry.
  • How the DSI could support the necessary expansion of the human capabilities of the economy, working with its new sister department in the Ministry, the DHET.
  • What role it should play in the governance of science councils not currently in the DSI family.
  • Given the new mandate, what additional expertise was required by the DSI to enable strong S&I leadership across government, such as economists and local innovation experts.
  • What should the DSI structure be?

The entities reporting to the DST were the the Academy of Sciences of South Africa(ASSAf), the National Advisory Council on Innovation(NACI), the South African Council for Natural Scientific Professions(SACNASP), the Council for Scientific and Industrial Research(CSIR), the National Research Foundation(NRF), the Technology Innovation Agency(TIA), the Human Sciences Research Council (HSRC), the South African National Space Agency(SANSA), the Special Service Delivery Unit (SSDU) from the National Intellectual Property Management Office (NIMPO).

Overarching challenge facing all DSI entities was under-funding, especially for the relatively new entities such as SANSA and the TIA. The DG added under-funding was perennial issue across the entities. The Department provided the entities with a Parliamentary grant. The norm internationally was that the entities had to do work on behalf of the government, and therefore should receive at least 50% of their budget from the state and then get other sources of funding. Over the years, almost all of the entities were receiving less than 50% from the state, with the exception of the HSRC.

Council for Scientific and Industrial Research (CSIR)

The CSIR was listed as Schedule 3B public entity in the PFMA. It obtained approximately one-third of its operational budget from the NT, and the remainder of income was derived from contract income.

The CSIR mandate states: “The objects of the CSIR are, through directed and particularly multi-disciplinary research and technological innovation, to foster, in the national interest and in fields which in its opinion should receive preference, industrial and scientific development, either by itself or in co-operation with principals from the private or public sectors, and thereby to contribute to the improvement of the quality of life or the people of the Republic, and to perform any other functions that may be assigned to the CSIR by or under this Act.”

This mandate meant better utilisation of the resources of the Republic,  manpower training to improve the productive capacity of its population, improvement of technical processes and methods to improve industrial production, and the promotion and expansion of existing, as well as the establishment of new industries.

The CSIR’s strategic objectives were to:

  • Conduct research, development and innovation, localise transformative technologies and accelerate their diffusion;
  • Collaboratively improve competitiveness of high impact industries to support South Africa’s re-industrialisation;
  • Drive socioeconomic transformation through RD&I which supports the development of a capable state;
  • Build and leverage human capital and infrastructure;
  • Diversify income, maintain financial sustainability and good governance.

The CSIR strategy was depicted in a diagram that presented its two strategic clusters -- Priority Sectors and Priority Technologies. There were industry advancement clusters, with areas of future production like chemicals, manufacturing and mining, and this would be the work the CSIR would be doing to develop capabilities and align with the 4th Industrial Revolution. The entity was also looking at next generation health, defence and security above advanced food and agriculture technologies. Under Industry and society enabling clusters, smart logistics, next generation enterprises and institutions, and smart places were identified.

Human Sciences Research Council (HSRC)

The mandate of the HRSC was to provide for the promotion of research in the field of human sciences in order to improve understanding of social conditions and the process of social change; to provide for the continued existence of the Human Sciences Research Council; and to provide for matters connected therewith.

The HSRC objectives were to:

  • Address developmental challenges in the Republic, elsewhere in Africa and in the rest of the world by means of strategic basic and applied research in human sciences;
  • Inform effective formulation and monitoring of policy, and evaluate the implementation thereof;
  • Stimulate public debate through effective dissemination of fact-based research results;
  • Help build research capacity and infrastructure for the human sciences;
  • Foster research collaboration, networks and institutional linkages;
  • Respond to the needs of vulnerable and marginalised groups in society through its research; and
  • Develop and make available data sets underpinning research, policy development and public discussion of developmental issues.

The HSRC trajectory from its traditional mandate to its threefold public purpose mandate had been closest to that of the CSIR. It was distinguished, however, from the CSIR’s expression of its threefold mandate by a much more deliberate focus on understanding the causes of, and finding solutions to, poverty, inequality and unemployment, and responding to the needs of vulnerable and marginalised groups in society. This was what distinguished the HSRC from all the other science, engineering, technology and innovation (SETI) institutes within the NSI, and gave it its unique mandate.

The HSRC worked in three big areas, which were inclusive economic development, human and social capabilities, and a developmental, capable and ethical state. There were various institutions within the HSRC which assisted it to deliver its strategic approach. The institutions were the Africa Institute of South Africa, the Centre for Science, Technology and Innovation Indicators, Democracy, Governance & Service Delivery, Economic Performance and Development, Education and Skills Development, Research Use and Impact Assessment, and Social Aspects of Public Health.

National Advisory Council on Innovation (NACI)

The NACI mandate was to advise the Minister of Science and Technology and, through the Minister, the Cabinet on the contribution of science, mathematics, innovation and technology to promoting and achieving national objectives. These were to improve and sustain the quality of life, develop human resources for science and technology, build the economy, and strengthen the country’s competitiveness.

NACI, consisting of the Council and the Secretariat, was not a listed entity in the PFMA. The Secretariat staff work for the Department, which also provides shared services, such as HR, IT, finance and communications.

The Academy of Science of South Africa (ASSAf)

The ASSAf mandate was to honour distinguished scholars in all fields of scientific enquiry, and to generate evidence-based solutions to national and global challenges. Its goals include recognition and reward for excellence, and the promotion of innovation and scholarly activity, effective, evidence-based scientific advice, public interest in and awareness of science and science education, and national, regional and international linkages

National Research Foundation (NRF)

The object of the NRF was to contribute to national development by:

  • Supporting and promoting research and human capital development, through funding and the provision of necessary infrastructure, in order to facilitate the creation of knowledge, innovation and development in all fields of science and technology, including humanities, social sciences and indigenous knowledge;
  • Developing, supporting and maintaining national research facilities;
  • Supporting and promoting public awareness of, and engagement with, science;
  • Promoting the development and maintenance of the national science system and supporting government priorities.

With regard to the human capital development of students, black representation at Honours/BTech level had increased from 79% in 2011/12, to 90% in 2017/18. Black representation at Masters level had increased by 40%, at Doctoral level by 24%, and by 36% at post- Doctoral level since 2011/12.

Female representation had increased by 10% at Honours/BTech level, 19% at Masters level, 21% at Doctoral level and 30% at post-Doctoral level over the same period.

Black representation among researchers had increased by 35%, and female representation had increased by 15% since 2011.

There was a total of 55 053 research and instructional staff at universities. 13 055 research and instructional staff had doctoral degrees, and 4 708 researchers were supported.

Strategic programme: 14 Circles of Excellence

The DG said the Department would be happy to come and present a productivity review on the 14 entities which were doing very well for the transformation agenda.

Strategic programme: research chairs

The programme gave researchers special resources to focus on publications. A graph depicted the spread of research chairs across South African universities. The historically advantaged universities were rewarded with more chairs and the racial distribution was skewed towards white chair holders, and this was a challenge had to be addressed. The gender distribution was skewed towards male chair holders, but there had been an increase in female representation over the last few years.

National research facilities

The country’s national research facilities provide unique and specialised infrastructure, with capabilities and services for competitive research, and human capacity development in science, engineering and technology in partnership with higher education institutions (HEIs).

 

Five national facilities were managed by the NRF:

  • iThemba LABS -- a multi-disciplinary research facility based on development, operation and use of particle accelerators and related research equipment;
  • The South African Radio Astronomy Observatory (SARAO) -- managing all radio astronomy initiatives, such as the Square Kilometre Array (SKA) and Hartebeesthoek Radio Astronomy Observatory (HartRAO).
  • The South African Astronomical Observatory (SAAO) -- promotes astronomy and astrophysics in Southern Africa.
  • The South African Environmental Observation Network (SAEON) - in-situ environmental observation network that produces data for scientific research and informs decision-making.
  • The South African Institute for Aquatic Biodiversity (SAIAB) - aquatic environment from marine offshore to continental fresh water catchment.

 

Science engagements were undertaken by the South African Agency for Science and Technology Advancement (SAASTA) to promote a scientifically literate society. District municipalities were reached through public science events, such as the National Science Week. There were 34 science centres across eight provinces. Mathematics and science at the school level were promoted through educator development activities, Olympiads and competitions, career profiling and role modelling, science camps and workshops.

Challenges facing the NRF were related mostly to transformation of human capital development, with too few black post-graduate students, especially at the PhD level, and researchers not being representative of the demographics. The research infrastructure was ageing due to funding constraints. More benefits could be derived from international cooperation.

The DST’s integration with the DHET would benefit the NRF through human capital development (bursaries and knowledge production), added research infrastructure, science maths at the school level, and international cooperation.

SA Council for Natural Scientific Professions (SACNASP)

SACNASP was established in terms of the Natural Scientific Professions Act, 2003, to register and regulate natural science practitioners in South Africa.  It was a professional body not listed with the PFMA. The SACNASP Act was currently being amended.

South African National Space Agency (SANSA)

The objects of SANSA were to:

  • Promote the peaceful use of space;
  • Support the creation of an environment conducive to industrial development in space technology;
  • Foster research in space science, communications, navigation and space physics;
  • Advance scientific, engineering and technological competencies and capabilities through human capital development outreach programmes and infrastructure development; and
  • Foster international co-operation in space-related activities.

SANSA was a 3A listed public entity in the PFMA. It collaborates with national and global partners and drives the transformation of the country towards a knowledge-based economy through the use of space products and services.

The DG said he was not sure if the Department had the chance to share the information about the work the entity was doing. SANSA had been appointed as one of the agencies from the African continent to collect space weather information, and the Department was looking at how it could provide resources for this. He offered an invitation to see the impressive work SANSA was doing.

SANSA had four strategic goals:

Goal 1: The development of a suite of space application products and services that directly respond to user needs.

Goal 2: The building of core space infrastructure, both ground and space based, that would enable the delivery of essential space services. The DG reminded Members that in the first election, there were long queues, but SANSA had worked with the Independent Electoral Commission (IEC) to look at how using space satellites could reduce long queues;

Goal 3: The generation of space-relevant knowledge that supports the developmental agenda;

Goal 4: The development of requisite human capacity that was needed for the implementation of key space initiatives.

SANSA’s financial sustainability was under threat due to sub-optimal levels of funding – a Parliamentary grant of R143.5 million compared to a budget projection of R2.5 billion (National Space Strategy). SANSA had been hit by another budget cut of R3.2 million, which had put additional pressure on its operations. Staffing costs amounted to 87% of the Parliamentary grant. There were no funds for capitalisation or recapitalisation, and it was currently sweating old assets to generate revenue. The mandate scope was limited – currently there was no focus on telecommunications or navigation and positioning applications and technologies.

Technology Innovation Agency (TIA)

The TIA’s mandate was to support the state in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovation.

The TIA was formed by the merging of various entities such as the Biotechnology Regional Innovation Centres (BRICs), the Innovation Fund, and the Advanced Manufacturing Technology Strategy (AMTS).

There was a network of 18 TIA technology stations based at universities of technology. The stations did a variety of activities, such as testing and analytical services, rapid prototyping and manufacturing, consultation, technology audits and feasibility studies, research and development, applied development, engineering and design, and technology demonstration and training

The TIA identifies, funds and supports entities to acquire and deploy high end infrastructure and expertise for use by various innovators, to conduct technology development and commercialisation

There were various platforms across the nine provinces. The platform services were analytical services, prototype development, technology scale up, technology validation, quality assurance, data generation, data analysis and advisory services.

The TIA Youth Technology Innovation programme was aimed at young Innovators (18-30 years old), students, researchers at HEIs and SC, entrepreneurs and individuals. Its objects were:

  • Funding the development and commercialisation of innovative ideas;
  • Contributing to a sustainable technology innovation ecosystem in SA, to support innovation and entrepreneurship;
  • Supporting social innovation amongst young people in rural areas; and
  • Cultivating the culture of innovation

The programme offerings were prototype development, technology development funding, incubation support, testing and certification, and subsistence allowance.

There were four innovation clusters to promote and catalyse a vibrant and lively market place by strengthening the ecosystem. The clusters were animal health, beef genomics, dairy genomics and uyilo: eMobility.

The new cluster initiatives were the forest molecular genetics programme, active pharmaceutical ingredients, nuclear medicines programme, and the medical devices cluster programme.

TIA Innovation for Inclusive Development (IID) programme supports the development of innovative solutions that solve societal challenges, particularly facing indigent communities in rural and township environments. Its focus areas were the grassroots innovation programme, innovation for service delivery, and innovation for local economic development. The budget was a R54 million investment. The funding instruments were the Grassroots Innovation, Living Labs Fund, the Technology Acquisition & Deployment Fund and Innovation for Service Delivery.

TIA opportunities were increased innovation activity in the NSI, growing private sector interest in innovation as a driver for competitiveness, government use of innovation for service delivery, and increased international interest in South Africa as an innovation hot-spot. Challenges included inadequate baseline funding, gap funding (R250m) for unfunded opportunities, negative stakeholder sentiment, and organisational capability.

TIA’s future positioning was informed by the 2019 White Paper on STI.  The strategic focus areas place emphasis on implementing its mandate, including the bio-economy, intensifying its commercialisation focus and ramping up the Technology Stations Programme. 

DSI financial overview

Ms Pretty Makukule, CFO, DSI, said Programme 4 (Research and Development Support) had received the biggest allocation, at 56% of the budget. Programme 5  (Socio-Economic Innovation Partnerships) followed with a 22% allocation, and Programme 2 (Technology Innovation) was allocated 15% of the budget. These three programmes rendered the core functions in the Department. Programme 1 (Administration) got 5% and Programme 3 (Internal cooperation and resources) received 2%. She said 5% of the budget was allocated for CoE, 3% for goods and services, and 92% for transfer payments. There was no payment for capital assets.

The 2019 MTEF budget cuts had resulted in the baseline being reduced by R265 million, of which R97 million was related to the current financial year. The reduction was mainly from entities’ baselines (wage freeze and 1% reduction on goods and services). Budget cuts of R24.8 million and a reprioritisation of R58 million had been effected with the SKA budget. Budget cuts of R1.6 billion were expected over the 2020 MTEF period.

The budget would result in an inability to fill some critical vacancies; a wage freeze, reduced salary increases and no bonuses; a reduced number of post-graduate students supported; and fewer research infrastructure grants. MTEF targets had been lowered for graduates and students placed in the Department’s funded work preparation programmes in SETI institutions.

 

Mr Mjwara concluded by referring to collaboration with other departments, and said he hoped the Committee would assist the Department, because some of the work at this level might require inter-portfolio committee interaction.

Regarding transformation challenges, the Department would work with its colleagues from the DHET, but there was a likelihood that resolving the challenges would be hindered by the resource allocation at the level of both the students and researchers. He was concerned that the budget cuts would affect the Department and its capability to do its work.

Conclusion

The Chairperson said the section on human resources (HR) matters had not been presented, and at the next the presentation the Department had to conclude on the matter.

He said that the last time the Committee engaged with the Department it could be recalled that it had indicated that the Department’s financial presentation had been inadequate, and therefore further engagement was needed. He was concerned about the big reduction in the Department’s allocation.

Members agreed that the Department would have to return, as there was insufficient time to discuss critical issues. A Member said the amount budgeted for the compensation of employees had to be discussed.

The meeting was adjourned.

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