Department of Sport, Arts and Culture 2021/22 Quarter 2 Performance

Meeting report

This meeting was held the day after the State of the Nation Address by President Cyril Ramaphosa. The COVID-19 pandemic had negative impacts including loss of jobs, loss of lives and economic downturn. The Chairperson pointed out that some of the mentioned challenges now form the mandate of the Committee. It was noted that the Deputy Minister could not attend the meeting due to her involvement in post-SONA stakeholder engagements and the Minister could not attend because he was preparing for the International Mother Language Day.

Department of Sports, Arts and Culture (DSAC) Quarter 2 performance
Mr Vusi Mkhize, DSAC Director General, remarked that the Department, the Netball World Cup Committee and the Netball SA have started an awareness programme to ensure that the country is informed about the Netball World Cup held in South Africa in 2023. DSAC launched the programme, Netball Friday, on 4 February 2022 to ensure that South Africans are actively informed about the event.

The purpose of this report to the Portfolio Committee is for accountability to enable the Committee to perform oversight of the Department it monitors. The Department serves as a delivery agent and works with provinces and entities to ensure social cohesion and nation building. This helps to integrate people from all walks of life as enshrined in the Constitution. The COVID-19 pandemic negatively affected some of the Department's programmes and it developed measures to deal with some of the limitations imposed by the pandemic. It implemented some programmes virtually or else it adopted a blended approach (hybrid) in certain circumstances. Social distancing in the form of attendance numbers was considered in each gathering to curb the transmission of the virus.

The target achievement for each performance indicator from 1 July 2021 to 30 September 2021 was presented:

Programme 1 Administration
The Department achieved 100% of its three targets. This included number of invoices paid within 30 days. The Department paid 126 invoices in July 2021 (R18.2 million), 125 invoices in August 2021 and 153 invoices in September 2021. Businesses stayed afloat because they received timely payments. DSAC ensured the appointment of board members for councils and boards that were due in Quarter 2 which included the KZN Museum, Freedom Park and the National Museum.

Programme 2 Recreation Development and Sports Promotion
The programme supports the provision of mass participation opportunities, the development of elite athletes and the regulation and maintenance of facilities. The sub-programmes include Winning Nation, Active Nation, Sport Support and Infrastructure Support. The Department supported 36 athletes, compared to a target of 30, through scientific support. More athletes submitted claims in Quarter 2 because they were part of TeamSA to the Tokyo Olympics and Paralympics. The Department supported 2 054 athletes, compared to the target of 1 000 athletes through various sports academies. The over achievement resulted from the extra support athletes got from provinces.

DSAC underachieved in target 3 (27 572 people instead of 100 000 people). The under performance resulted from restrictions on the number of participants at gatherings in Level 2.

It achieved 100% of its targets for the number of sport and recreation promotion campaigns and events implemented in Quarter 2. It also over-achieved (758 schools, hubs and clubs provided with equipment / attire based on established norms and standards compared to a target of 750).

The Department did not achieve its target (2 500 learners per year) for the number of learners in the National School Sport Championship due to COVID-19 restrictions. Similarly it had only 20 245 learners participating at District School Sport Tournaments compared to a target of 25 000. DSAC provided 50 municipalities with technical support during construction.

Programme 3 Arts and Culture Promotion and Development
The programme has five sub-programmes namely:
- National Language Services
- Cultural and Creative Industries Development
- International Cooperation
- Social Cohesion and Nation Building
- Mzansi Golden Academy.

DSAC received, translated and edited 163 documents. It gave financial support to two local and international market access platforms: Crafts Competition Awards and South African Music Awards (SAMAs). It only coordinated one out five international engagements in Quarter 2. DSAC did not give financial assistance to the Moral Regeneration Movement due to the failure of the implementing agency to provide adequate reports after repeated requests. The Department facilitated nine community conversations/dialogue against the initial target of five. It could not assist any youths in the Arts Development Programmes due to a number of administrative delays. The Social Cohesion Advocates implemented 22 advocacy platforms on Social Cohesion compared to a target of five.

Programme 4 Heritage Promotion and Preservation
The sub-programmes include
- Heritage Promotion
- National Archive Services
- Public Library Services.

DSAC awarded 54 students with Heritage Bursaries against a target of 65 students due to delay in submission of compliance documents by the universities due to university officials working from home. The Department held 12 public awareness activations on the "I am the flag" campaign against a target of six. The Unit partnered with the Social Cohesion Unit to roll out more campaigns. 41 flags were provided to schools against a target of 30 flags. It achieved 100% performance in the number of workshops conducted.

The Department digitised 104 Treason Trial dictabelts and 32 Truth and Reconciliation Commission audio tapes compared to 25 and 20, respectively. It gave financial support to 26 new or modular libraries. It published two government gazettes on Standardized Geographical Names.

Financial Report as at 30 September 2021
Acting CFO, Mr Sibongile Mondile, noted that the Department had spent R2.6 billion, which represents 45.3% against a budget of R5.7 billion as at 30 September 2021. This was a decline of 3.5% compared to spending of the previous financial year. It spent R215.4 million on Goods and Services (40.4%). It recorded an over expenditure of 2.3% as a result of the payment made to Ditsong Museum in September 2021 and 50% of Quarter 4 tranches The Acting CFO provided details for each programme and for the transfers to department entities and provinces and municipalities to fund programmes such as community libraries and mass mass-participation events (see document).
 
Discussion
Mr M Zondi (ANC) asked how the Department intends to achieve its outstanding targets. Will the Department achieve the outstanding targets within the remaining three months of the financial year? What are the measures in place to avoid underspending in 2021/22?

Ms V Malomane (ANC) commended the DSAC for 100% performance in Programme One. It is commendable that the Department paid all invoices within the 30-day cycle to keep businesses afloat. She urged the Department to fast-track the appointment of a permanent CFO.

Ms Malomane suggested the Department should also look at measures to improve spectator attendance in stadia throughout the country. It should provide MPs with the Netball World Cup 2023 T-shirts as this will further facilitate awareness in their various constituencies. She asked for clarity on the payment made to Ditsong Museum.

She stressed the need for an effective Moral Regeneration Movement to rescue youths from various social ills and to bring out the best in them. The young people are the leaders of tomorrow and they need to be properly integrated into nation building. Has the Department received the reports on the turnaround plan from the relevant role players? She asked the fate of the 300 artists the Department posted to various schools. How is their performance and is there value for money? The Department must be able to present a report that details the activities and progress of the artists. She also spoke about the importance of heritage promotion, flags and national symbols. The flag, for example, is a symbol of pride and should be treated respectfully. DSAC should seek to instill a sense of ownership into host communities for their heritage sites and other important facilities like libraries. This incentivizes the communities to guard and protect the facilities against destruction and vandalism, particularly during service delivery protests.

Ms R Adams (ANC), in a written comment, commended DSAC for achieving 100% of its targets in Programme 1. How does it plan to achieve outstanding targets? Has it fixed the challenges encountered during online application to a programme? How will it manage the failure of the Moral Regeneration Movement to deliver its programme?

Mr D Joseph (DA, Western Cape) commended the Department's decision to adequately fund netball in the country. It is important to ensure that the money is spent on the intended purposes at all levels of government. He also commended the decision of government to host the Two Oceans Marathon event to be held on Easter weekend. The event will potentially attract a huge number of participants. DSAC should work with all stakeholders to boost spectator attendance at the event. It is equally important to develop means to relax the various Covid-19 restrictions. He asked about the Sports Development Grants. He urged DSAC to provide a list of municipalities that benefited from its Technical and Management Support initiative. What type of support did the municipalities get? He asked for more clarity on the need to bolster indigenous languages in higher education institutions.

Ms V van Dyk (DA) asked about the Mzansi Golden Academy Award. How many projects did DSAC support since the COVID-19 pandemic began? She asked the number of schools it supported, particularly in her constituency.

Mr T Mhlongo (DA) commended the decision to provide flags to schools across the country. When will those flags get to the various schools? The Committee and other stakeholders must support the Netball Friday initiative to increase awareness about the Netball World Cup 2023. DSAC must provide MPs with T-shirts, which should be worn every Friday. What is it doing to pay outstanding grants to affected athletes? What criteria does DSAC consider to fund and benefit heritage sites across the country? He cited the bursary received by an actress called Natasha Thahane and asked what measures had been taken by DSAC to pay out outstanding bursaries.

The Chairperson urged DSAC to bring Netball SA to the next meeting on 22 February 2022. She noted it is important that the Department develops the means to spend its money to prevent fiscal dumping at financial year end.

DSAC response
On the appointment of a permanent CFO, the DSAC Chief of Staff replied that this had already been completed and the new CFO will assume office on 1 March 2022. The implementing agency for the Moral Regeneration Movement has developed an improvement plan to achieve the outstanding targets. However, DSAC continues to struggle to get proper reporting from this agency. The Department takes steps to ensure that the agency complies with the relevant standards.

The Department was optimistic that the amount of underspent funds will be minimal at year end because spending has already improved for the various programmes since the end of Quarter 2. It should be noted DSAC could save a significant amount on the Compensation of Employees (CoE) due to a number of unfilled vacant positions. It is important to know that virements occurred in various categories during the budget adjustment process. DSAC works closely with National Treasury to secure all necessary funds, which will be disbursed to the relevant entities by end of February or early March 2022. DSAC would provide the Committee with a written list of the entities that benefited from the various grants.

Ms Sumayya Khan (DDG: Recreation Development and Sports Promotion) noted that Quarter 2 of 2021/22 coincided with various levels of lockdown restrictions. There were restrictions on the number of people that could gather indoors or outdoors. This adversely affected sporting activities in schools. Therefore, programmes involving school sports might experience underspending. The savings will be shifted to areas where the funds are needed.

DSAC works with relevant role players to improve spectator attendance at sports events, while considering health and safety measures at the same time. An indoor facility can accommodate 6 000 vaccinated people but not exceed 50% capacity, whereas an outdoor facility can accommodate a maximum of 20 000 vaccinated people, not exceeding 75% capacity. DSAC maintains that proper protocols must be followed at all sport events. It continues to find ways to improve spectator attendance at sport events, especially after the State of Disaster is lifted. The organizers of the various events such as Two Oceans Marathon, Sanlam Cape Town Marathon and Johannesburg Cycling Race have developed relevant blueprints to improve safety of the events. DSAC engages the services of NGOs particularly in the area of mass participation in sports. Almost 50% of the Department budget is spent on this purpose.

The grants are allocated to the nine provinces using a specific formula that ensures fair distribution of resources. All the 19 sport federations sign appropriate agreements with DSAC to ensure effective implementation of the various programmes. The entities have to adequately report to DSAC at the end of the financial year on the status of transformation in various areas.

Some potential beneficiaries could not get the Sports Development Grants because of inadequate documentation, particularly a lack of audited financial statements. DSAC is working with these entities to encourage compliance with these requirements. It underspent in various mass sport events due to the restrictions experienced in Quarter 2. Some events scheduled for Quarter 2 were shifted to the Quarters 3 and 4. This will ensure the participation of about 5 000 schools, which enables DSAC to spend the allocated funds.

Dr Cynthia Khumalo (DDG: Arts and Culture Promotion and Development) noted that three of its programmes were undertaken and implemented through an open-call process, where the programmes were advertised on various media platforms.

DSAC is working with relevant entities to address some of the challenges associated with the open-call process. It received about 4 000 applications against the target of a maximum of 1 000 applications in 2021/22. It will develop measures to deal with the challenges of timelines and have a process map that is adhered to in order to address the different red flags.

Mr Vusithemba Ndima (DDG: Heritage Promotion and Preservation) said that DSAC collaborates with other departments, especially the Department of Basic Education (DBE) to increase awareness and the need to promote national symbols. Together with DBE, it published a book titled My Country South Africa, Celebrating Our National Symbols, and the book was printed in 2006 and 2008. Posters and other national symbols were produced and distributed to schools. DSAC has infused some initiatives, to bolster national symbols, into the school curriculum. It has produced a booklet titled National Identity Passport of Patriotism, which also covers national symbols.

Mr Mkhize said that DSAC only funds heritage sites that comply with the Cultural Institutions Act. This is the reason some of the heritage sites got grants but others were rejected. He replied that DSAC paid a total of R350 000 to Natasha Thahane as opposed to the R1 million reported in the media.

The Director General said that DSAC aims to achieve economic reconstruction and recovery. The Minister prioritises economic recovery, with plans around stabilization, consolidation and expansion so that the sector becomes self-sustainable. He promised to provide Netball World Cup T-shirts in appropriate sizes to each MP on the Committee.

Committee minutes of 3 December 2021 and 25 January 2022 were adopted.

The Chairperson thanked the delegation from DSAC and the MPs for active participation and contribution in the meeting.

The meeting was adjourned.