Department budget: briefing by Director General

Meeting report

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
28 February 2001
DEPARTMENT BUDGET: BRIEFING

Chairperson: Mr E Ebrahim

Relevant Documents:
Strategic Priorities of Department of Foreign Affairs (See Appendix)
Foreign Affairs Budget 2001/2

SUMMARY
The Foreign Affairs Department's plea to the Portfolio Committee is that it advocates for increased funding for the department. The Director General outlined the objectives of the Department and the Chief Director of Finance showed how current funding is insufficient to reach these goals. The Department must open new missions, especially in Africa, and international conferences are increasingly being hosted here, among other expenses.

MINUTES
The Director General, Mr Sipho Pityana, outlined the current vision and objectives of the Department. Priorities listed were:
- repositioning of Africa in global economic relations (Millenium African Programme)
- advance goal of peace and security
- promote stability
- positively project South Africa's image abroad
- multilateral priorities
- bilateral priorities

Key priority countries listed in terms of promoting internal stability were Lesotho, Zimbabwe and the Comoros. Major continental initiatives listed were the SADC and the African Union. Capacity building within the Department is also a major objective.

The Department's Chief Financial Officer presented the Department's 2001/2 budget, explaining that more funds are needed if the projected objectives are to be met. The Department wants to increase the number of its missions in Africa and the country is increasingly hosting international conferences, such as this year's World Conference on Racism. The estimated cost of the conference is R36 million. These goals cannot be accomplished only with funds donated from the United Nations. At the same time, the Department admitted that 51% of its budget goes to paying Departmental salaries.

Discussion
A DP committee member noted that while the upcoming World Conference on Racism would cost a significant amount, it was a once-off expense and would not be a regular expenditure item. He asked if it was typical for government department salaries to take 51% of the budget.

The Department's Chief Director of Finance answered that he had heard some departments spent 80% of their budgets on salaries, but he could not confirm this.

The Director General commented that to reduce the income of diplomats would be a drastic and very unpopular intervention.

Another committee member wanted to know why the conference is being funded through the Department budget. He also asked how the Department can influence decisions to make more impact on budget allocation.

The Chief Financial Officer agreed that the Conference on Racism is a "one time only" affair but reminded the Committee that South Africa is invited to host many important conferences. She said the Department is under-funded for the World Conference on Racism and cannot rely on UN donations to make the event happen. He added that the Department is dependent on the Treasury for funding allocations in that it cannot make financial decisions on its own.

Professor Mabeta (UDM) asked about the renting of buildings by the Department to accommodate itself, the UN and its agencies. He also noted that the Department needs funds to open new missions in Africa. He believed these were urgent problems that impact on capacities and precipitate unforeseen expenses.

The Deputy Director General said that the Department hopes to be housed in one building in three or four years' time. As to the question of whether they should own or rent, he said the Department does not have enough funding to enter into public/private partnerships. The Department's capacity has to be increased in order for it to meet its objectives. He said South Africans working at missions abroad have to be able to maintain a "South African" standard of living. Anything less would be to be "sub-standard" working conditions. They must be able to live at the same standard as they do in South Africa.

The Chief Financial Officer said the Department is obliged to carry out political decisions therefore missions must be opened. Training is also important, and funding needs to substantiate this importance.

The meeting was adjourned.

Appendix:
STRATEGIC PRIORITIES OF DEPARTMENT OF FOREIGN AFFAIRS
PRESENTATION TO THE FOREIGN AFFAIRS PORTFOLIO COMMITTEE
by
SIPHO M PITYANA DIRECTOR GENERAL: FOREIGN AFFAIRS

28 FEBUARY 2001

Introduction
- Recognise changing world environment
- Opportunities for advancing foreign policy objectives
- Constraints in this regard
- Comprehensive strategy + 4 year programme
- Focus on 2001/2

VISION
South Africa shall strive for peace, stability, democracy and development in an African continent, which is non-sexist, prosperous and united, contributing towards a world that is just and equitable.

MISSION
The Department of Foreign Affairs is committed to promoting South Africa's national values, the African Renaissance and the creation of a better world for all.

VALUES
In the realisation of its Vision and the execution of its Mission, the Department of Foreign Affairs will be guided by the core values of loyalty, dedication, ubuntu, equity and professional integrity.

Strategic Priorities
- Repositioning of Africa in global economic relations (MAP)
- Advance goal of peace and security
- Promote stability
- Positively project South Africa's image abroad on
- Multilateral priorities
- Bilateral priorities

1. Africa Economic Development Programme
Focus on three issues
- Progress made in development strategy
- Opportunities to advance the programme
- Possible strategies to be considered to advance the programme

Possible Strategies to Advance
- Build world consensus on map
- WEF - Davos (January 2001)
- Endorsement by African leadership - Libya OAU Special Summit (March 2001)
- MAP redefines ECOSOC agenda / programme (May 2001)
- Development calabash of CSSDCA (S.A. to host) (May 2001)
- World Conference on Sustainable Develop- ment 2002
- Advance implementation of programmes e.g DOT force, debt reduction cancellation for HIPC
- Use important fora to advance MAP e.g World Bank/IMF, WTO negotiations, G8 EU
- South Africa's role in OAU leadership - 2001/3

2. Peace and Security in Africa
- Recognition of progress made in achieving peace in Africa
- Key priorities - Angola, DRC and Burundi - by 2001
- Challenge of other areas - Sierra Leone, Sudan

Angola
1. Dialogue MPLA/UNITA
2. Working visit by Presidents
3. Understand Angola government conditions underwhich they would be prepared to re-open negotiations
4. ANC - MPLA discussions
5. Africa's contact group
6. President's envoy to specific countries
7. Continue to provide visible humanitarian assistance to Angola
8. Influence SADC/OAU positions
9. Enforcement of UN resolutions (sanctions)
10.Interaction with external role players

DRC
- Successful implementation of Lusaka agreement
- Commitment to Lusaka by new leader
- Send Presidential envoy
- Convene Summit by Pres. Chiluba to review situation in DRC
- DRC, Zimbabwe, Rwanda - Defence Ministers convened by South Africa
- Facilitor to intensify his efforts
- OAU - SG assist restore facilitators role
- Success of the Maputo process
- Prepare for participation in MONUC
Economic co-operation in rebuilding DRC economy

3. Promoting Internal Stability
- Internal conflicts
- Key priority areas (countries) identified (Lesotho, Zimbabwe, Comoros)
- Political re-alignment in the region (opposition forces)

Lesotho
- SADC Assistance in successful elections 2001 (May)
- Agreement on electoral model and technology used
- Assist materially and logistically
- Redefine structure of relationship with Lesotho (economic development)

Political re-alignment in SADC region
- Emergence of opposition bloc (RENAMO, MDC etc.)
- Understand underlying factors that account for its emergence
- Maintain channels of communication with these and monitor them and influence them
- Joint search and destroy operations

Positive Projection of South Africa
- Investment promotion
- Trade promotion
- Tourism promotion
- Improve knowledge of South Africa's environment
- Targeted initiatives in 2001/2
Role of IMC (26/01/2001) and IIC (February) (collaborative)

Major Continental Initiatives
- Restructuring of SADC
- Finalise SADC restructuring - adopt Minister's recommendations (March 2001)
- Review of SADC institutions implemented - by regular Summit
- SADC Defence PACT - by end of 2001
- Strengthen sector co-ordinating units
- Clarify mandates of Cluster, Executive Secretary and Secretariat - by regular Summit
- Implement SADC protocols
- Ratification and implementation of FTA - by end of 2001
- Africa Union established - by regular Summit of OAU
- CSSDCA

Multilateral
- EU and the Swedish Presidency
- Endorsement and programmatic support for MAP
- Implementation of Cotonou Agreement (ACP)
- Ratification of TDCA (EU/SA FTA)
- Complete outstanding negotiations
* Fisheries
* Wines and Spirits
- Take forward Skagen and Cairo declarations
- Engage Belgium as successor to Sweden as from July 2001

WTO Round
- Launch a new round of negotiations
- Liaise with key partners to achieve common strategy
- Advance development agenda for Africa (MAP)
- Focus on development issues

G7 of South
- South Africa, Nigeria, Egypt, India, Brazil, Malaysia and Saudi Arabia
- Formally establish this group by middle of 2001
- Convene Summit - September 2001

Targeted Bilateral Relations
USA, Canada, Brazil, UK, France, Germany, Nigeria, Russia, China, Algeria, India, Japan, Saudi Arabia and Egypt

USA
- Interact with US, Administration, Congress business and investor communities
- AGOA
- BNC
- Possible working visit by Presidents

Brazil
- JBC
- FTA - MERCUSUR
- South - South co-operation (G7)

Russia
- Convene joint inter-governmental Trade Economic Committee (ITEC)
- Science and Technology co-operation signed 2001
- State visit by President Putin

CAPACITY BUILDING
- Align the departments' delivery mechanisms with our strategic plan
- To identify specific areas of capacity needs
- To produce a document/report on required departmental core competencies to deliver on the objectives
- To qualify financial resources required for delivering departmental objectives.
- To identify specific ICT infrastructure needs and costs
- To delineate specific roles for the different levels in terms of decision-making.
- To identify internal control weaknesses
- To clarify roles of Head Office vis a vis Missions and the extent to which they are positioned to achieve stated objectives
- To clarify relations between multilateral and bilateral at micro and macro level

Heads of Mission
- Culmination of IRPS planning process
- Align mission programme to IRPS agenda and priorities
- Agree on an integrated programme of implementation
- Bring on board key stakeholders
- Define and agree on programme monitoring and evaluation system