Statistics SA, Brand SA, DPME 2020/21 Annual Performance Plans; with Ministry

Public Service and Administration

08 May 2020
Chairperson: Mr T James (ANC)
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Meeting Summary

Audio: Stats SA, DPME & Brand SA 2020/21 Annual Performance Plans 

Annual Performance Plan (APP) of Government Departments & Entities 20/2021

Statistics South Africa briefing was entitled Improving Lives through Data Ecosystems. The focus was on innovation in the creating, distribution and absorption of statistics. A major challenge is technological illiteracy and ensuring that they are not leaving anyone behind. Despite National Treasury’s request to make savings, the National Census of 2021 is still ring-fenced within the budget as data about what is happening at the lowest possible level of society is crucial. They presented some official statistics on the turnover and survivability of businesses during the lockdown as well as infection rates and the ability of those needing to access chronic medication during the lockdown to do so.

In the discussion, concerns were raised about strengthening statistical co-ordination and legislative reform and if the budget allocated over the medium term was sufficient to accomplish its plans. There were concerns about when the District Development Model as a capacity-building programme for municipalities would take effect and what was being done to reach rural areas as they move surveys online. Members asked how budget constraints would affect their ability to move online as well as their legislative reform measures and the upcoming local government elections. They asked if Stats SA was assisting in producing the statistics being relied on by the Department of Health when briefing the nation.

Brand SA said that they had to reprioritise their plan owing to COVID 19. The downgrade to junk status had affected it badly as it hit just as COVID-19 impacted. Brand SA is guarding against irregular expenditure and ensuring that they do everything by the book. Its first goal is to build global investor confidence without physically going to different countries. They aim to present a positive story about what government is doing in response to any negative messaging on South Africa. It noted that governance is a sphere which South Africa has been praised as very few countries are as open about issues like state capture. Finally, they had been doing a lot of work making plans to encourage tourism to come into South Africa whilst working in a constrained economic environment, including the GDP and the downgrade. It was noted that inconsistent nation brand messaging from key stakeholders can kill the brand more than the downgrading of South Africa's creditworthiness.

Responses to these challenges included targeting international markets through the Global South Africans programme, strengthening partnerships and an analytical-driven intervention in line with nation priorities as well as identifying key stakeholders and aligning them with consistent brand messaging.

Brand SA has a new framework as the 2019-2023 Strategic Plan places emphasis on the impact that the plan aims to achieve. This plan was informed by consultation with relevant stakeholders and the Board of Trustees. From a communications and marketing perspective, its goals include elevating the value of structural reforms that are implemented and designed to lift economic growth potential and re-introducing South Africans to themselves as drivers of change through their behaviour.

Although the DPME had tabled its Annual Performance Plan in Parliament in March, it noted that it will change due to re-prioritisation caused by COVID-19. Instead DPME spoke to the work it is busy with now.
It was monitoring the Presidential hotline, which has been contacted frequently through this time with 92.8% of calls dealing with COVID-19. Most of the calls dealt with social benefits, food parcels, health benefits and travel around South Africa. These calls help to identify areas where support and interventions are needed. It presented highlights from the social cluster as most of the money during this time is allocated to this cluster. General strengths lay with the Health Sector and its ability to partner with the private sector in setting up screening and testing and preparing for the pandemic under the co-ordination of the Minister of Health. It noted technological innovations in education and the opportunities online educational platforms may provide if educational services could be zero-rated so as to be more inclusive.

General weaknesses across the sectors related to building state capacity, resources and the triple challenge of poverty, unemployment and inequality as was particularly noticeable in the basic education sector, which is unlikely to complete its curriculum. Although the higher education institutions closed momentarily and resumed online, inequality of access was still a concern.

Food security concerns are being dealt with by the relief package released by government but DPME expressed concerns that if it is not clearly communicated, there may be an expectation that relief will be granted indefinitely.

There is on-going service provision of psychosocial support through the Gender-Based Violence Command Centre. There are a good number of social workers, but there is greater demand for these services than there is the ability to supply them due to budgetary constraints.

The Medium-Term Strategic Framework (MTSF), Strategic Plan and APP will have to be re-worked and may have to be re-tabled as most of the R500bn economic relief and recovery package is targeted at economic and social relief.

Vacancies in the Department were 12.4% in January and now 11%. A quarter of these posts are waiting for date of reporting and some of them are awaiting approval by Cabinet.

The financial division of departments has been declared as an essential service so DPME can maintain its standard of not exceeding 10 days in paying suppliers as well as dealing with irregular, fruitless and wasteful expenditure as well as enforcing consequences where needed.

Risk management strategies involved having the Unemployment Insurance Fund (UIF) offices open and creating tools for social media analysis along with relying on academia to continue to produce high quality research reports.

There was a drastic reduction of non-payment of suppliers within 30 days by the end of 2019/20 financial year but the quantum is still high at R850 million. It is concentrated in a few provinces and sectors like water and sanitation, although there were positive outcomes in Gauteng Health.

Members asked about the induction of Brand SA new board, if rental for its China office continued to be paid and their strategy for addressing the United Nations Human Rights Council comments about South Africa’s "toxic lockdown culture" due to police brutality.

Meeting report

Minister in the Presidency opening remarks
Minister Jackson Mthembu, accompanied by Deputy Minister of Planning Monitoring and Evaluation: Ms Thembi Siweya, stated that they are reporting to the Committee within the context of COVID-19. Whilst they would ordinarily be reporting on the work they have done in the first quarter; it has been interrupted by COVID-19. They are accordingly unable to present their Annual Performance Plans (APPs). Government has established a National Coronavirus Command Council (NCCC) and it reports to Cabinet on a regular basis. They also have a NatJoints which is a collection of all the Directors-General which reports to the NCCC. He felt it was important to preface by saying everyone is working together. Their focus will be on the actual work they are doing as their APPs have been interrupted by the virus. Since no one planned for the virus, they intended to put to the Committee what their efforts and responses are to this emergency.

Statistics South Africa on the 2019/2024 Strategic Plan: Improving Lives through Data Ecosystems
Statistician-General, Mr Risenga Maluleke, noted three extra slides of statistics pertinent for the Committee’s attention had been added to the original presentation sent to the Committee. They have established a new direction which aims at improving lives through data ecosystems. The word ecosystem was chosen as they want an entirety of an ecosystem as a system comprising the value chain from start to finish. Their current focus is innovation. Although one of their aims was to optimise, they feel that the conditions of COVID-19 have thrust them forward into a need to innovate by including increased use of technology. When COVID-19 hit, StatsSA had a lot of field workers in the field. They alerted the Minister that they were pulling out all field workers so that there would be no negative perception about exposing their staff and the public before the lockdown was announced. Mr Maluleke remarked that there has never been a time where data has been so sought after as during this crisis, accordingly their second aim is agility. They want to deal with matters as they come at any given moment. This has been demonstrated in how the country has responded so far. Thirdly, they aim to look at transformed capabilities, meaning their ability to uniformly move together with their users, staff and respondents in creating, producing and absorbing statistics. They are currently facing the challenge of technological illiteracy and ensuring that they are not leaving anyone behind.

The 2021 Census must go ahead in the spirit of innovation, agility, insight and transformed capabilities. They wanted to send staff to collect data and talk to members of society on computer-assisted personal interviews, but this will only be done with those members of society who cannot use the links sent out. They will need a number of checks and balances in the work they are going to do.

In response to COVID-19, they have introduced online surveys which will be sent to members of society whose numbers they have collected from those who participated in their sample surveys from time-to-time. They have contacted businesses and 85% of businesses have indicated that they are not able to meet their usual turnover during COVID-19 and 54% of them have indicated that if the current lockdown continues, they will be unable to survive for longer than one to three months.At a behavioural level 3.6% of all the people they reached out to indicated they have tested positive for the virus. 2.4% indicated that they may have contracted COVID-19 as they were showing symptoms and of these 2.4%, 24% have gone for screening and/or testing. Of people with chronic conditions, 92% were able to access their medication during the lockdown. For those who could not, 45% of them were worried that if they left their house, they may contract the virus, 37% feared arrest and the rest did not have money. The survey found that 92% did not move from their regular province of residence. Limpopo had the highest movement from other provinces.

Stats SA has a work programme that responds to their strategy, which has been challenged by COVID 19. Going forward they know they will continue to face challenges but they are still collecting data. Although field workers are not currently in the field, they have created online surveys. In facilitating a way for their field workers to work from home, they have supplied them with smart tablets to do so. When they come to the stage where field members need to make contact with society, they will take all the necessary precautions and remain within the bounds of the law.

If the nation does not have statistics, the country will not be able to respond adequately. They need numbers on GDP, prices, and this will help them understand the Consumer Price Index. There is no other time where statistics have been more needed than now.

Mr Maluleke spoke to two previous concerns raised by the Committee on its employment of people with disabilities and women. Stats SA has not made staff appointments since October 2016. When they begin to do so, they will focus their efforts on these. Women are 41% of current staff and they are aiming for 52%. People with disabilities are sitting at 1.4% and they aim to get this figure above the 2% set by government.

Discussion
Ms C Motsepe (EFF) noted Stats SA was allocated R1.36 million to strengthen statistical co-ordination and legislative reform. She asked if the budget allocated over the medium term was sufficient to drive legislation and ensure co-ordination of statistics.

Ms M Kibi (ANC) asked when the programme will take effect for capacity-building in municipalities.

Ms M Ntuli (ANC) commended Stats SA and noted that they recognise the triple challenges in the country of inequality, unemployment and education. She asked if Stats SA can recommend a long-term strategy to reach the entirety of South Africa as the country will not be the same after COVID-19.

Mr C Sibisi (NFP) welcomed the report but was concerned about what is happening in rural areas. He asked how they are ensuring that they reach these people.

Ms B Maluleke (ANC) asked what Stats SA's role is in compiling statistics to aid the Department of Health when it reports to the nation. She asked how the current situation affects the planned 2021 local government election targets.

Ms R Lesoma (ANC) suggested that in terms of legislative reform, if possible, that the back-office activities of fine-tuning the Bill should be done and ready for when Parliament resumes. She said that she stands to be corrected by the Minister, but that since government is expecting departments to cut back their budgets to ensure food security and the livelihoods of the country. Whilst this is happening, she would like them to ensure that the quality of work which they produce internationally is not compromised by budget adjustments. Although money is being spent, they should ensure financial management and compliance is upheld as there has not yet been finalisation of the 2021 budget.

Mr S Malatsi (DA) asked that given the historical budgetary constraints, how this would impact any movement into the online system for the census given the delays brought on by COVID-19.

Statistician-General's response
Mr Maluleke replied that Stats SA has finished its work on legislative reform – what remains is consultation with the Department of Planning, Monitoring and Evaluation (DPME). The only issue is that all efforts are being placed on responding to COVID-19, however, they have shared their legislative amendments with DPME so that it can then be forwarded to Parliament. At this point the cost is not yet foreseeable, as implementation of the Amendment Act which will come into their work programmes in the future will tell them what the cost will be. It will try and harness statistical processes happening in other departments under a single set of standards so that they can be regulated uniformly as well as ensuring that methods for graduating to official statistics are upheld. There may not be outright costs to Stats SA as when they harmonise, they are able to save on the duplication of statistical costs in the system as a whole.

Budget cuts
National Treasury has asked the Department to provide them with adjusted budgets in response to the need to fight COVID-19. Stats SA is responding along with all other Departments to make savings, although Treasury may not agree. However, if certain roles are not fulfilled at Stats SA, it will impact the quality of statistics available in the country. Therefore, the savings being asked for are a potential challenge; however they are engaging with Treasury about this. Stats SA commits to adhering to all prescripts.

District capacity building
The District Development Model as presented by the President will take a long time to be implemented at district level. Stats SA has begun by already making data available on districts and municipalities and local samples, but what South Africa needs is services. Additionally, district municipality leadership needs to work with Stats SA to assist them by providing their daily administrative records.

Rural Areas and Inclusivity in technology
Amongst their aims, interconnectedness is the fourth aim. They intend to remain interconnected by reaching out to everyone who supplies them with information and who uses it. They will work with other government departments to address the technology challenge.

Assisting the Department of Health
Government is the biggest user of their statistics. The information they use are part of the administrative records which institutions can release. These statistics are not official statistics as they have to first be approved by the Statistician-General. This process takes long as they have to be approved as quality statistics before being graduated to official statistics

Census
Stats SA is pulling out all stops to ensure that the census and the pilot still continue.

Local Government elections
In supporting the Local Government elections, the last census Stats SA conducted was in 2011. This census was augmented by the 2016/17 large sample survey. This survey was of 1.5 million households and has allowed them to report at lower levels and will form the basis on which they advise the Infection Prevention and Control (IPC). Today Stats SA is presenting its five-year Strategic Plan along with its annual work programme for which they appeal for support from Parliament to take these processes forward and they will face the challenges of COVID-19 as they come. They commit to always informing Parliament and the Minister of any changes that come up.

How budgetary constraints will affect moving online
Stats SA intends to bring forward the pilot for Census 2021 and put in place all the tools for data collection. One system is to have limited assistance by field workers which will assist the elderly in particular. They also intend to implement computer-assisted web interviews (CAWI), but this will require strong call centre support at any given moment. They still have until October 2021, but in planning for the census they need all their ducks in a row up front. They are doing everything they can to ensure it continues to take place. During a time like COVID-19, a nation needs data at lowest possible reporting levels. The census gives them that.

They are engaging with National Treasury under conditions of constraint, but the budget for the census is currently ring-fenced. He hopes that this will remain the case as budgets are cut.

The Chairperson asked the Minister if he would like to comment.

Minister Mthembu replied that the Statistician-General had satisfactorily covered the topics. Brand SA will be presenting now and they have been having issues with the CEO of Brand SA, which is a matter they are still engaging in the long process of trying to conclude this. There is no Director-General for DPME. They wanted to alert Parliament and the Committee that although they intended to advertise for the post, they then saw the number of floating Directors General as a result of the amalgamation of departments, and felt that they should look at the Directors General already in the system.

Brand SA Annual Performance Plan
Ms Thulisile Manzini, Brand SA Acting CEO, said that they had to re-prioritise their plan owing to COVID 19. She noted that the downgrade affected them badly as it hit after COVID-19 impacted. they are guarding against irregular expenditure and ensuring that they do everything by the book. She presented from slide 29 although the presentation was not able to be uploaded of the Strategic Plan and on their APP.

Their first goal is to build global investor confidence. As much as this type of confidence is difficult, work is continuing without physically going to different countries. They are using SABC, ENCA, CNBC Africa to continue to promote positive stories about South Africa. They want to use radio to reach the rural areas. They were recently in Australia selling the brand of South Africa. They are the first to present a positive story about what government is doing in response to any negative messaging of South Africa. Slide 37 speaks to the Nation Brand’s spheres of influence. There are 6 elements of a successful brand. The Nation Brand’s spheres of influence include commercial and cultural products and sporting prowess, the skills of its people, and the issue of openness. Governance is a sphere which we have been praised as very few countries are as open about issues like State Capture. Finally, they had been doing a lot of work making plans to encourage investment to come into South Africa.

Challenges include the competition around middle-income countries for tourism as people need a reason to come to South Africa. There is the increasingly constrained economic environment, the GDP and the downgrade. Another challenge is inconsistent nation brand messaging when it comes from key stakeholders can kill the brand more than credit downgrading. Constraints to operational efficacy, resources and governance were other challenges faced.

Responses to these challenges include targeting international markets through programmes like the Global South African and strengthening partnerships. They also aim to segment analytical-driven interventions in line with nation priorities. Finally, they aim to align stakeholders to consistent messaging and branding by identifying key people and ensuring brand messaging is consistent, thereby raising levels of awareness.

Slide 42 addresses the further challenge of a negative narrative about South Africa. Strategic partnerships are being formed with the media by demystifying negative perceptions. There is a need to focus on all the good things we are doing well at as a country. They are co-ordinating with National Treasury in terms of the National Recovery plan, so that they can put this information into their programmes and communicate this. They are hosting webinars to further the state of the economy and reassure investor confidence. South Africa currently ranks at number 38 on the Nation Brand Index which is attributed to improved perception by its people pillar.

Dr Krishnee Kissoonduth, Brand SA Director of Corporate Services, picked up from slide 32 on the planning process. The most important aspect of the new framework for the Strategic Plan is on the impact that the plan aims to achieve. This plan was informed by consultation with the relevant stakeholders, including the Office of the Executive Authority, the Board of Trustees, external stakeholders and Brand SA employees. The Board came on board later in the year and for much of the period there was only one trustee, but when the Board was appointed, they involved themselves in the plan so that the Strategic Plan incorporated their inputs. The emphasis of this plan is the impact it aims to create though the targets outlined in the APP.

The APP draws on the Strategic Plan and was drafted in consultation with their employees so that they collectively own the deliverables they have committed to for 2020/21. It also allows employees to appreciate the line of sight from their individual performance contracts through the operational plan, right through to the APP. Both the APP and the Strategic Plan will be reviewed as a result of the impact of COVID-19.

They have an internal plan for market-related deliverables as well as a plan for internal readiness, covering the preparation of the organisation outwardly and inwardly. This preparation is to look after their employees as they engage outwardly. Slide 59 speaks to the current structure approved in 2014. Structure review is currently in progress through a supply chain management process and the bid evaluation is scheduled to evaluate the tender responses received.

At Brand SA there are 57 permanent posts with 48 warm bodies and nine vacant posts. They have a vacancy rate of 15. 8%. Of the nine vacant posts, seven have been advertised and are at different stages of the recruitment process. Finalisation has been affected by COVID-19; however, they are looking at innovative ways of finalising appointments during Level 4. Of the two remaining posts, they have finalised the advertisements for the CFO and Supply Chain Manager. From an employment equity point of view, they are over-represented by African females and under-represented in terms of coloured, Indian, white and African males as well as coloured and white females. There are currently no disabled people in their structure but the aim is to meet the government target. Posts are being advertised on the Disabled People SA website whilst continuing to advertise on other platforms to ensure they bring the most qualified person into the job.

Ms Sithembile Ntombela, Brand SA Acting Chief Marketing Officer, said that from a communications and marketing perspective, the goal is elevating the value of structural reforms implemented to lift economic growth potential and re-introducing South Africans to themselves as drivers of change through their behaviour. They intend to act with a social purpose to remind citizens of who they are and what they are capable of. The Play your Part programme was created for this purpose to rally South Africans at home and abroad who are proud and patriotic across all sectors. Now more than ever the nation needs to stand together. The nation’s value system has always been about ubuntu, resilience, collaboration and survival.

In a BBC article last month, Sarah Reed ranked South Africa as one of the top four countries in the world with a tradition of kindness and generosity. This is the lens with which we should view ourselves. Communication efforts must bring back trust and pride and the spirit of collaboration as active citizens to help rebuild what we have lost during this time.

They have also prepared an international campaign called Prepare, Protect, Prosper. Prepare refers to leveraging and showcasing our role as the African Union chair and member of G20, BRICS and SADC for the benefit of repositioning the continent and the country. The Continental Free Trade Agreement is a mechanism which will be used to promote regional trade. Protect refers to our position as a serious global player that can compete for tourism and investments, therefor communication campaigns must have the agility to counter negativity at all times. Prosper refers to the aim that the country prospers and the economy grows again. Since the world will not be the same after Corona, communication strategies need to be more aggressive to respond to the post COVID-19 world.

Department of Planning Monitoring and Evaluation (DPME) briefing
Mr Stanley Ntakumba, Acting DPME Director General, noted that the Strategic Plan and APP tabled in Parliament in March will change owing to the pandemic re-prioritisation. He instead spoke to the work they are busy with now. He noted that Minister Mthembu is responsible for the Government Communication Information System (GCIS) and co-ordinates communication. From a DPME perspective, the Minister Mthembu sits in all the clusters, including the National Command Council, the Presidential Co-ordinating Council and co-ordinates the work of government including through planning, monitoring and evaluation.

The Presidential Hotline has been contacted frequently through this time with 92.8% of calls dealing with COVID-19 such as social benefits, food parcels, health benefits and travel around South Africa. These calls help them identify areas where support and interventions are needed.The DPME is well-embedded into the work of government through the NatJoints and the work of the different clusters. There are five clusters: governance, justice, international relations, economy and the social cluster. They intend to present the highlights from the social cluster as most of the money during this time is allocated to this cluster.

Health Sector
Before lockdown, there was 42.7% growth in the spread of COVID-19 before 23 March and 4.9% growth during the lockdown. Case fatality is about 1.9% compared to the global average of 7.9%. These statistics have been recognised by the World Health Organisation. Service delivery has been accelerated, such as the delivery of water and the hope is that this is maintained. The social relief and economic recovery package, along with the goodwill of civil society and the private sector, has been able to cushion vulnerable people.

General weaknesses across the sectors
The state’s capacity is still being built, and the triple challenge of poverty, unemployment and inequality are being seen and are particularly noticeable in the basic education sector.

Basic Education Sector
Strengths include that the Department of Basic Education was able to adapt quickly and extend the holiday before the pandemic affected schools.

Weaknesses include the inability to complete the curriculum and the fact that learners will not be ready for post school-education. Inequality is evident as those who are well-resourced and geographically well-resourced areas can continue studies through the use of information and communication technology (ICT). There are opportunities to zero-rate educational websites across the country which will help students who do not have money for data.

Post Schooling Education Sector (PSET)
The Department of Higher Education and Training closed all higher education institutions and then re-opened them online. This may mean that they are able to complete the curriculum; however, inequality remains present when the poor and the rich are considered. There are opportunities to maximise the use of technology and in trying to deal with issues of inequality.

Social Development Sector:
Food security is being dealt with through the relief package and the grant that was put in place, which provide almost universal coverage to the vulnerable and needy.

Weaknesses include co-ordination with social partners who are providing food parcels out of generosity, but the approach is piece-meal and measures are being put in place to mitigate this. Secondly, state capacity building includes new ICT systems to support the distribution of the social relief package. This will enable them to strengthen the archive system they already have - SOCPEN, and there is an opportunity to use these databases as a full social protection database which includes the Unemployment Insurance Fund (UIF) and the South African Revenue Service (SARS) and allows for reaching out to the unemployed and the unbanked in a more comprehensive way. There are high expectations that the social relief will continue forever and that is not necessarily the plan, so if not managed, the environment may fuel unrest around these expectations.

There is on-going psychosocial support, particularly the Gender-Based Violence Command Centre. There are a good number of social workers, but there is greater demand for these services than there is the ability to supply these due to budgetary constraints. Trauma in society has been elevated during this time. They aim to deal with this head on. Responses to gender-based violence are being implemented led by the Presidency and the Ministry.

DPME way forward - emerging ideas
They have had to rethink their medium-term strategic framework (MTSF). Most of the economic relief and recovery package of R500bn is targeted at economic recovery and social relief. From a planning point of view, they have to reprioritise, which will affect Strategic Plans and APPs which may have to be re-tabled. When the President announced the package, he said that after disaster management the country will not be the same as it was pre-COVID. Therefore, DPME recognises the impact of COVID-19 and that it is beyond the Health sector. The main focus from now until 2022 relates to survival.

Vacancy rate
It was 12.4% in January and now it is 11%. A quarter of these posts are waiting for a reporting date and some of them are awaiting approval by Cabinet, particularly the Deputy Director General post.

30-day payment of suppliers
This is an intervention in collaboration with National Treasury. They have emphasised to all departments that payments to suppliers must continue even during COVID-19 with legitimate invoices. By the close of the financial year there was a drastic reduction of non-30 day payment but the quantum was still high at R850 million. This is concentrated in a few provinces and sectors like water and sanitation. They see positive outcomes in Gauteng Health, which used to be a hotspot for non-payment of suppliers due to medico-legal claims and population migration from other provinces and abroad.

Demographics
DPME currently has 382 staff members with 59.4% female and 40.6% are male. Senior management is 48% male and 52% female. Disability target is 2% and they are at 2.1%.

In conclusion, Mr Ntakumba reiterated that the Strategy and APP will change.

Discussion
Ms Ntuli welcomed both presentations and commended the work they are doing under these circumstances. She asked Brand SA if South Africa is being seen as doing better in managing the pandemic. She asked what strategy have they created to market South Africa for tourism and other areas so that it is seen as a home and a safe place for people to visit. Secondly, they cannot overlook South Africans and she asked how they can give hope to emerging businesses such as B&Bs. She commended DPME on the Hotline because it is important to communicate with the community on the ground in this situation. Making use of the floating DGs is a good suggestion and she wished them the best in this effort. She asked how they envisage controlling irregular expenditure in a time where processes are dictated by the circumstances.

Ms Kibi noted that COVID-19 is digging deeply into the coffers of the government and commended them for the work they were going. She asked if DPME has developed a risk management strategy yet, as when last asked, they had not. She also asked for DPME for an update on appointments to vacancies, particularly DG posts. The Auditor-General had raised findings about Brand SA's supply chain management and incorrect appointment of suppliers, she asked what measures had addressed these challenges. She asked what Brand SA’s campaign is to correct the perception about the applications of foreign nationals for relief grants during the pandemic.

Mr Malatsi asked what more needs to be done to bring finality to the prolonged process of the suspended Brand SA CEO. He asked if the Minister can commit to a timeline on this. What more needs to be done?

Ms Lesoma said that in the last few weeks DPME has proved the need to co-ordinate different departments. The induction of the new Brand SA board needs to include more emphasis on good governance. She asked if they have been inducted and how compliance with COVID-19 regulations and good governance were ensured. She asked if the China office of Brand SA is empty and if the lease contract is still being paid as it may be considered as fruitless and wasteful expenditure by the Auditor General. She asked about the robustness of the Hotline and how many calls have been dealt with. The DG appointment is important and a very strong performance assessment must be put in place to ensure the new DG is not a non-performer.

Dr L Schreiber (DA) asked about the United Nations Human Rights Council (UNHRC) branding the SA lockdown approach as a "toxic lockdown culture". It expressed concern about some measures implemented, the police brutality and the employment of 75 000 new soldiers. He asked what Brand SA thinks about how to speak about South Africa and what damage this may have on thinking about this being one of the hardest lockdowns in the world. He asked the Minister for clarification as the Minister was at the Communications Portfolio meeting earlier today. He asked the Minister if the statement made by the DPSA DG at a meeting with this Committee two days ago was correct that the lockdown level will be reviewed every 14 days.

Minister's response
Minister Mthembu replied about the UNHRC comment that as he is not the Minister of Public Service and Administration and he is not familiar with the statement, he would have to gain clarity for himself on the matter. He said that a lockdown is intended to give the desired outcomes at a particular level. If the desired outcomes are not reached, they may either, remain at that level or increase the level in particular areas. As discussed at the National Coronavirus Command Council (NCCC), they have considered if they should have the whole country at Level 4 or if they should look at differentiated architecture which takes into account areas at high risk and those where there is semblance of reduced infections. These matters are up for discussion but he is not familiar with the discussion on re-evaluation every 14 days. There has not been such a discussion of this at the NCCC. However, there may have been such discussion at the NatJoints but he is not sure as he does not sit on that. If there has been such discussion at NatJoints, it has not filtered through to the NCCC.

Brand SA response
Ms Manzini replied that they are creating a marketing plan to encourage tourism. In dealing with South Africans they communicate the positive work done by government. B&Bs and hotels fall within the ambit of the Department of Tourism which will come and present its own strategy.

Irregular expenditure
National Treasury has been very helpful in this period in communicating about procurement and what can result in irregular and wasteful expenditure by explaining how to guard against this.

Supply chain measures
They are putting measures in place to deal with supply chain as Auditor-General South Africa (AGSA) made findings on this matter. Previously supply chain consisted of a bid specification committee (BSC) then bid evaluation committee (BEC) and then it would proceed straight to the bid adjudication committee (BAC). Now, just before the tender is awarded, they take the tender for internal audit which is outsourced to an external audit company called BDO before they award tenders. They continue to train committees and those who participate in supply chain so they do not encounter such audit findings again.

New Board Induction
The new board was inducted. The board meetings contain a standing agenda item on new legislation and the company secretary presents any new developments in government.

The Minister asked for clarity on the China office.

China office rental
Mr Kgomotso Seripe, Acting CFO of Brand SA, responded that there is no contract so there will be no fruitless expenditure. In the US and the UK, they are currently at home; therefore, they do not have any fruitless expenditure. Regarding suppliers, they use Treasury's Central Supplier Database (CSD) to ensure that the suppliers appointed are compliant. They are putting preventative measures in place and are working closely with National Treasury in taking their considerations into account.

30-day payment of suppliers
They have moved their manual systems online so that they can pay suppliers within 30 days. They now have a tracking register from the day of submission of invoice so if they pick up any errors they can communicate with suppliers and still pay within the 30-day period.

Minister Mthembu said that the Department of Social Development would be better placed to answer if foreign nationals are able to receive food and under what circumstances. Alternatively, Ms Kibi can craft the question to the Minister directly.

UNHCR on toxic lockdown culture and police brutality
They have meetings with the media to ensure correct reporting. They appreciate the efforts by the different ministers as they give their briefings. Brand SA appreciates their handling of the issues but it focuses on correcting reporting when there is fake news. However, she thought that the Minister would have more to say as he is known as the face of COVID-19.

Minister's response
Minister Mthembu said that they should appreciate the comments made by Mr Schreiber. He was looking at the numbers of those who have passed on as a consequence of COVID-19, which is currently 161 people. There are other countries which are standing at thousands and thousands of deaths. Some may argue that these are drastic lockdown measures. Some countries that started the lockdown almost at the same time have seen many more deaths. Although they are not saying it will not happen here, we want to ensure that when we reach a peak, we are prepared as a country. PPE is now being brought in in abundance. The lockdown has given enough time to prepare as a country. At the moment only 36 people need ICU attention for COVID, but there will be a time where we will need more ICU beds. Although others may disagree, as government they know that they did the best that they could under the circumstances.

The first step was announcing the State of Disaster. They then introduced the first lockdown and the second lockdown which lasted 35 days altogether at Level 5. We are now Level 4 of the lockdown in its fourth day. Had they not taken these measures, including the screening under the coordination of the Minister of Health, they believe there would have been more deaths in the country. When he speaks of those affected, he is not concerned about a particular ethnicity as one life lost is one life too many. Had they not brought in soldiers and police, the infection and death rates would be higher. Where the police and soldiers have done something wrong, since we are a democracy, no one is above the law.

DPME response
DPME Director-General Ntakumba thanked the Committee for their encouraging words.

Vacancies
The DG office became vacant on 31 January this year. The Minister is at work with Cabinet to fill the role as soon as possible by looking at the floating DGs in the system, due to the National Macro Organisation of Government (NMOG) project after the 2019 elections, which is likely to be faster than advertising. Vacancies were 12.4% in January and they have since filled some posts, including two DDGs. Of the 11% remaining, 50% are waiting or the date of assumption of duties. Others are at different recruitment levels - either interviewing or short-listing and in some cases advertising. Some posts are being filled by internal candidates, therefore those vacated posts need to be advertised.

Irregular expenditure
As Brand SA noted their audit action plan for this, which is similar for DPME; he did not dwell on this. He did however note that this area is monitored very closely. The entire financial division has been declared as an essential service so that they can maintain their standard of not exceeding 10 days in paying suppliers and dealing with irregular, fruitless and wasteful expenditure as well as enforcing consequences where needed.

Risk management strategy
All UIF offices are open, innovative tools such as social media analysis are being created and there has been good response from academia to assist with pro-bono research for the different country reports required internationally.The monitoring mechanisms will change dramatically as they will be following the money in terms of the R500bn relief package.

Minister Mthembu replied to the question on Brand SA's compliance with COVID-19 rules. All non-essential services have to be conducted from home and all meetings held online. Those who needed to come to the office were at a minimum, and before going to an office, sanitizers were in place and now masks are mandatory. These measures do not apply only to Brand SA, but to all people so that there is no physical contact within the public service. Those who can work from home should do so across all departments. What they have learnt up to now is that South Africans have worked together to save lives. They have seen health workers committed to the oath they have taken. In general, the majority of South Africans are adhering to the measures put in place by government, irrespective of political and socio-economic backgrounds.

Ms Lesoma said that the COVID-19 lessons from the turnaround of service delivery should be taken into consideration post COVID-19. She asked that in overseeing government entities if the Committee can give questions arising from the presentation documents before the meeting so the entities can respond to them.

The Chairperson closed the meeting by thanking the Minister, Deputy Minister and all the delegates.
 

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