CSIR, NRF & TIA Annual Report 2021/22

Higher Education, Science and Innovation

21 October 2022
Chairperson: Ms N Mkhatshwa (ANC)
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Meeting Summary

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The Committee convened in a virtual meeting for briefings on the 2021/22 Annual Reports by the Technology Innovation Agency (TIA), National Research Foundation (NRF), and the Council for Scientific and Industrial Research (CSIR).

The Committee was concerned that the over-achievement in a number of targets, reported by the entities, was due to either conservative planning as a result of budget cuts or the setting of low targets based on poor planning processes. The Committee was advised to consider the impact that the Covid-19 pandemic had on the processes and systems of government departments and entities. The over-achievement could be attributed to the manner in which systems responded to the changing environment and was not necessarily due to under planning. The pandemic revealed the resilience of scientists, entrepreneurs and innovators who have shown the capacity to adapt to the restricted environment enforced during the lockdown periods. Technology facilitated the creation of innovative mechanisms that were accessible via online platforms to many more users than what had been anticipated during the planning stage. Changes in the circumstances have in some instances resulted in the overshooting of targets.

The decline in research and development funding was highlighted as a significant impediment to the ability of entities to deliver on their mandates. Additionally, the enforcement by National Treasury of regulations and the public procurement process was restricting entities to create an enabling environment to earn revenue within the public sector. For example, it limits state-owned entities to making use of the capability of the CSIR which is regarded as South Africa’s most significant technology asset. Despite numerous engagements, the matter remains unresolved with the effect of missed opportunities, related to projects that the TIA and CSIR were unable to deliver and funding opportunities that the NRF was unable to grant to deserving students.

The Committee was encouraged by the innovative solutions created and proactive plans implemented by entities to address societal issues. The e-certification system implemented by the TIA was widely celebrated. The entity was advised to promote the use of the system to the South African Police Service. The Committee welcomed the promotion and development of indigenous languages through the partnership between the NRF and community radio stations in rural areas. This initiative was addressing the objective of inclusivity and of leaving no one behind. The NRF/NSFAS partnership aimed at finding solutions to fund postgraduate students was highly commended. The Committee applauded the collaboration between the CSIR and TVET Learning Factories, geared towards the development of 4iR skills.

Meeting report

The Chairperson invited the Department of Science and Innovation (DSI) representatives to make opening remarks.

Dr Rebecca Maserumule, Chief Director, Hydrogen and Energy, DSI was hopeful that the new Technology Innovation Agency (TIA) Chairperson and Board would be given the time to reflect and steer the organisation in the right direction. The Ministerial TIA review had been finalised and the report was expected to be completed within the next quarter or in February 2023.

Dr Mmboneni Muofhe, Deputy Director General (DDG), Socio-economic Innovation Partnerships, DSI, stated that the term of the new Council for Scientific and Industrial Research (CSIR Board would commence within the next month. He commended the outgoing Board for a sterling job.

The Chairperson wished the new Board Chairperson of the TIA and her team all the best for the new term. She affirmed the support of the Committee in them turning the tide and playing a robust oversight role at the institution.

TIA Presentation
Ms Matshidiso Modise, Board Chairperson, TIA, said the new Board had been in office for almost a year and had integrated well into the National System of Innovation (NSI). During the past year, the Board observed shifts and changes while engaging with various stakeholders. She reported that replies to clarity-seeking questions posed by Members at the previous appearance had been formally submitted. The TIA was undergoing a review process and was ready to support the Minister in his mission to strategically reposition the entity in the ecosystem and make it fit for purpose in the South African innovation landscape. The TIA must play a key role in creating jobs and in eradicating poverty and inequality.

The Chairperson recognised Ms Modise from a previous engagement when the Annual Performance Plan of the TIA was presented. She was of the opinion that they should no longer be referred to as a new Board.

Mr Patrick Krappie, Acting CEO, TIA, stated that the entity was quite proud of the achievements and positive results which were reflected in the presentation. But it would be left to the Committee to judge. The statistics on transformation were not about the numbers but about the impact that the TIA was making across the different dimensions of society. Areas of impact included amongst others, addressing unemployment through the more than 231 jobs created; enterprise creation through the establishment of more than 12 spin-out companies; and transformation through the allocation of 20% of investment funds and 38% of uncommitted funds towards marginalised provinces and designated groups, respectively.

Mr Ismail Abdoola, CFO, TIA, reported on the financial overview of the entity. The TIA achieved clean audits for the past two years and an unqualified audit for the period under review. Achieving the eleventh consecutive unqualified audit was evidence of the commitment to maintaining a level of good governance and a healthy environment on a consistent basis. Income of more than R600 million for the 2021/22 financial year consisted of almost R447 million through the MTEF allocation and nearly R172 million from contracts that the TIA was managing on behalf of the DSI. 97% of funds received are disbursed towards project recipients and administration expenses. The target efficiency ratio is aligned to a cost maintenance level of 30%. The entity was able to maintain a 28% efficiency ratio. Procurement spending in terms of transformation targets remained an area of focus. But certain limitations were in place with regard to the maintenance of equipment where the manufacturer is the sole maintenance service provider. The TIA was working hard to identify and support black-owned, as well as women and youth-owned businesses.

(See Presentation)

NRF Presentation
Dr Nompumelelo Obokoh, Board Chairperson, NRF, stated that from a strategic perspective, the NRF sought to be South Africa’s premier enabling researcher for a better society. The entity drives this objective through the four pillars of its 2020/25 strategy, i.e. transformation, impact, excellence and sustainability. The presentation would highlight key achievements, some of the strategic partnerships forged, and additional funding leveraged over the past financial year to advance the mandate of the organisation. She thanked the Committee for the support of the work of the NRF and confirmed the commitment to advance a knowledge transferring and inspiring nation.

Prof Fulufhelo Nelwamondo, CEO, NRF, said the NRF had been tested by the Covid-19 pandemic because it had to get into spaces for which its members were not trained. He trusted that the Committee would find the performance outcomes just as pleasing as the Board. Income received increased from R3.5 billion in 2021 to R4.4 billion in 2022. All the money had been spent on projects and bursary funding. The year ended with a small surplus of R7 million. The NRF was experiencing a shortfall of R2 billion to fund the more than 5 000 students that met the requirements. He was pleased to share with the Committee that the Financial Statements reflected the position of a growing organisation and of a going concern from a cashflow perspective. The Parliamentary Grant remained flat at 20% but was declining in real terms due to inflation. Most of the income has been generated from DSI contracts and other income, e.g. isotope sales. An increase in income was needed to improve the good work that the NRF was required to deliver. A key aspect was the alignment of the NRF agenda to national imperatives to ensure that the public could experience the benefits of research. He thanked the DSI for the support.

Dr Obokoh was pleased with the achievements of the NRF Board. More than 80% of the targets were met and 65% of the targets were exceeded. She was confident that the Board-approved strategy would ensure that all targets would be met. From a transformation perspective, the NRF was gradually making a dent in the research enterprise. She was grateful for the support of the executive team, the DSI and the Committee.

(See Presentation)

CSIR Presentation
Prof Thokozani Majozi, Board Chairperson, CSIR, informed the Committee about a 2018 decision to reposition the organisation and make it more industry-focused. The strategy was beginning to reap rewards as evidenced in the performance outcomes of the 2021/22 reporting year. More than 80% of the key performance indicators (KPI’s) were achieved. The focus was on creating a balance between supporting a capable state and contributing to industrial development. The organisation achieved an unqualified audit this year, similar to the preceding years. It was the only organisation in the public sector with a level 1 B-BBEE rating. The transformation strategy is focused on increasing the science, engineering and technology (SET) base in terms of diversity, equity and inclusivity. The organisation was emphasising growth on the higher ranks of the science development ladder to assist those at the pinnacle of the research level. He was satisfied with the progress in this regard. The youth was being supported through internships and other initiatives, including the Youth Employment Service (YES) programme. Research programmes are guided by government strategies and frameworks of the South African Reconstruction and Development Plan (RDP).

Dr Thulani Dlamini, CEO, CSIR, reported a decline in performance outcomes in some areas but good progress in areas closely aligned with the new strategy around the focus on industrial development. The Parliamentary Grant remained flat over the past three years. Public sector funding decreased by 24% mainly due to the loss of almost R200 million in the prior year’s income for work in support of developing the defence capability of the country. The loss in funding from the Department of Defence (DOD) had a ripple effect on the decrease in total income. Despite the significant loss of DOD income, the CSIR achieved positive developments in terms of research, development and innovation (RDI) outcomes that were at a technology readiness level of six and above. The CSIR achieved 60% of its targets but compared to the previous reporting year, the trajectory of targets not met was moving in the right direction.

Mr Andile Mabindisa, Group Executive: Human Capital and Communication, CSIR, presented some of the highlights of the human capital strategy initiatives. This included the Bursary Programme which sponsored 488 students, with 153 at PhD level, the Graduation in Training Programme which supported 80 graduates, with 28 in permanent employment within the organisation, and the Workplace-based Learning Programme, which had been supporting 207 interns since its inception in the 2018/19 reporting year.

Mr Ashraf Dindar CFO, CSIR, reported on the financial sustainability of the organisation. The improvement in international and private sector income over the last few years, indicated the importance of income diversification considering the decline in the Parliamentary Grant and public sector funding. Income diversification allowed the organisation to increase its margins and improve profitability. The CSIR had been successful in managing costs with a below-inflation increase of 1.8%. The organisation managed to maintain financial sustainability, improve liquidity and solvency ratios, as well as increasing margins on contract-related income and yields on investment income. Key amongst the challenges impacting the ability of the organisation to assist SOEs and government departments were the constraints imposed by national procurement legislation, the decline in national R&D investment and the global geopolitical situation.

Adv Esme Kennedy, Group Executive, Legal, Compliance and Business Enablement, CSIR, said the organisation was continuously driving the eradication of irregular, and fruitless and wasteful expenditure to maintain good governance. A fully embedded compliance function was established in support of fraud prevention and risk-based compliance assessments. Staff are being trained on Supply Chain Management (SCM) practices and procedures. The safety, health and risk environments are continuously being monitored to identify risks and implement appropriate responses.

Dr Kaven Naidoo, Group Executive, Business Excellence and Integration, CSIR, presented examples of technology that was developed in collaboration with various partners, e.g. with FarmSol Holdings to support emerging farmers by digitally transforming maize farming services using unmanned aerial vehicles, satellite technologies and big data analytics. The collaboration with African counterparts involved field trials of diagnostic tests and kits to detect pathogens that affect African aquaculture.

Dr Sandile Malinga, Group Executive, Smart Society, CSIR, said the organisation was investing heavily in empowering SMMEs in partnership with the SETAs and private sector. Collaborating with the Energy and Water SETA (EWSETA) and the South African Institute of Chartered Accountants (SAICA) are good examples of such partnerships.

Dr Motodi Maserumule, Group Executive, Advanced Production and Security, CSIR, presented the Eastcape Midlands Technical and Vocational Training College as an example of the CSIR infrastructure investment capabilities. It is a customised learning platform with an appropriate curriculum that is modelled on industrial operations. The centre is geared towards the development of 4iR skills to prepare FET college students for the current and future workplace. The intention is to develop more centres throughout the country in collaboration with FET colleges and the private sector.

Dr Dlamini stated that the previous year had been successful and significant progress had been made in terms of the new strategy. The pace of growth is impacted by the increase in private-sector funding. Transformation remained a critical issue therefore a strategic fund was created to attract chief and principal researchers.

(See Presentation)

Prof Majozi thanked the CEO and the team for the presentation which covered the full ground in terms of the financial, human resources and research status. He asked to be excused to attend another engagement.

Discussion
The Chairperson briefly lost connection due to loadshedding. She agreed that the CEO of the CSIR could field the questions from Members on behalf of the entity.

The Chairperson wanted to understand how the entities were able to over-achieve in a number of targets. In some instances, the over-achievement was double the initial target. The NRF attributed the over-achievement to flexibility during the Covid-19 period. She asked if it was a planning issue and what mechanisms could be used to assist with target setting versus achievements. Planning should not be conservative and would have been easier if the budget needed for the sector was available. She noted how the CSIR was intending to remedy the regression in representation in terms of affording leadership opportunities to women. She asked how the TIA was planning to address the issue in terms of gender and race. She welcomed with enthusiasm the e-certification innovation and was counting on similar progress seen in the banking sector where the mobile phone could be used instead of a bank card. She drew attention to the huge outcry from young people and women who want their innovations to be commercialised but need support to make their products shelf-ready. She urged the entities to work collaboratively to assist young people in bringing their innovations to life in order to solve the many societal challenges. She wished that the e-certification innovation could be distributed to many police stations. She sought clarity on the implementation of the NRF target relating to the training of scientists and journalists who use indigenous languages to communicate scientific information. She wanted to know if the target should be reviewed. Not meeting the target to fund researchers remained a challenge. It was concerning that entities were reporting a low uptake when young people and scholars regularly approach the Committee for assistance to access funding. She welcomed the NSFAS partnership aimed at finding solutions to fund postgraduate students. She wanted to know if postgraduate funding could be consolidated across government entities and the public sector to get an understanding of the pool of funds available for this purpose. She acknowledged the efforts to collaborate with historically disadvantaged institutions.

Ms J Mananiso (ANC) urged all the entities to work hard on improving their recruitment strategies. She felt that people living with disabilities needed to be mainstreamed because not enough attention is being paid to their situation. The entities should include all marginalised groups in their plans. She welcomed the presentations as a reflection of good news in the science, technology and innovation space. She was hopeful that despite the financial constraints, the management of and good governance at the entities would impact positively on the daily lives of people. She welcomed the responsibility that the TIA took to deal with issues of gender-based violence and femicide and was hoping that other entities would follow the example. She requested the TIA to provide a breakdown in terms of the geographics of the 231 jobs that were created. It was important that provinces and regions be accommodated in all of these empowerment initiatives. She emphasised the need to apply the District Development Model in the plans of the entities to decentralise services throughout all nine provinces. She highlighted the importance of including targets related to indigenous languages because she believed that information is the first enabler of transformation. She noted that emphasis is placed on empowering black people and women and advised the NRF to include targets related to youth and people living with disabilities in the 2020-25 strategic plan. She welcomed the NSFAS partnership to increase funding opportunities and felt that it should be monitored to ensure that it is allocated to deserving students. Advancing diversity, equity and inclusivity could only be achieved if public awareness and participation programmes are strengthened because it was important that even people in rural areas should be aware of what has happened in the NSI space. She requested the CSIR submit an action plan to mitigate the decline in funding. She asked for the submission of a program of action to address the targets not met. She welcomed the human capital strategy and reiterated the need to be inclusive. She requested a breakdown of where in the Department the 28 graduates have been permanently employed. She welcomed the targeting of TVET institutions for 4iR skills development. She asked for an indication of how many students have benefitted from the programme and at which institutions and provinces the skills development centres are located. She pointed out that demographics and designations were omitted from the report. She sought clarity on how the Gauteng household travel survey had been conducted and if it was a value-for-money survey. The Impact Catalyst indicated 20 provincial partners in five provinces. She wanted to know in which provinces the partners were located. She was hopeful that the healthy financial report would translate into benefits for the citizens and wished the entities all the best with their future plans.

Ms D Sibiya (ANC) asked how the TIA was using accelerators and incubators to massify its reach to ensure accessibility in rural provinces. She wanted to know what the gaps in the innovation ecosystem were and what interventions were required to enhance the ecosystem. She asked what the economic value of commercialised innovations was. She wanted to understand how the NRF was prioritising research in terms of support and grant allocations. She asked how the DSI was planning to address the shortfall in funds which is limiting the support for research projects. She wanted to know if the NRF was partnering with other stakeholders to negate the impact of budget adjustments that resulted in the lowering of targets. She asked what the reasons were for the decline in female chief researchers from 18% in 2019 to 13% in 2022 at the CSIR. She wanted to know what the potential socio-economic impact could be if capacity-building opportunities are not taken advantage of. She asked how the CSIR was addressing impediments that are preventing state entities such as ESKOM to benefit from its capabilities.

The Chairperson requested an update on the appointment of the CEO from the Chairperson of the TIA.

TIA response
Ms Modise replied that the ability to appoint the CEO was linked to the outcome of the current Ministerial Review process. The new CEO should be a fit-for-purpose individual who can deliver on the direction of the organisation, post the review. She acknowledged the huge funding gap for early-stage start-ups. The TIA was playing a proactive role in terms of sourcing venture capital and training black venture capitalists through the Innovation Fund and the Industry Matching Fund that was piloted in 2019. The TIA positioned itself as a de-risker of innovations. Entrepreneurs regularly approach the TIA and acknowledge that the commercialisation of their ideas would not have been possible without support from the TIA.

Mr Krappie stated that the background to the over-achievement in some of the targets could be traced back to the 2020-25 Strategic Plan that was compiled before the Covid-19 period. The initial plans contained larger targets but the budget had to be prioritised to accommodate what was achievable in the context of the pandemic and lockdowns. Ambitions had to be scaled down and expectations needed to be moderated. The targets in the Annual Performance Plan (APP) were aligned with the reduced budget. Changes in the circumstances could have resulted in overshooting the targets. In the context of the strategic cycle, the internal management indicators applied an element of conservative planning. Covid-19 brought to the fore the resilience of entrepreneurs and innovators who have shown their ability to rise up to a challenge. It affirmed confidence in the calibre of people that the TIA was supporting. Government is under pressure to perform and achieve more than what had been committed. The focus for the TIA is on impact and less on the numbers because people are interested in their challenges being solved.

On the issue of spatial transformation and making sure all provinces receive support, Mr Krappie, advised that the DSI was spearheading the Development of Local Innovation Systems. Not getting support could be attributed to the economic structure of some provinces and the inability to access funds and support programmes. Specific interventions were needed to expand the geographical footprint, e.g. the Living Labs Programme led by Dr Muofhe, which are centres that allow entrepreneurs access and support for their innovations. Another example is the Grass Roots Innovation Programme for people in marginalised communities who are operating outside the formal innovation systems. Over the past four years, 150 entrepreneurs had been on-boarded. The TIA was committed to assisting people in the designated groups. The Youth Technology Innovation Programme, which had been decommissioned due to lack of funding, is being re-established. Plans were in place to launch innovation programmes involving women, youth and people living with disabilities. However, proper funding was needed for these purposefully designed interventions. He undertook to return with a breakdown of locations and demographics of the number of jobs created. He explained that the footprint is massified through implementing partners, i.e. accelerators and incubators because the organisation did not have a presence in all nine provinces. The TIA was working with implementing partners, e.g. Technology Transfer Officers at universities, who source opportunities across the country and manage the projects, funded by the TIA. The SMME Seed Fund is used to fund implementing partners with the capacity to support technology entrepreneurs. At the time of reporting, the TIA was supporting 15 partners who have the responsibility to select the most deserving causes within the available budget. The Sefako Makgatho Health Sciences University would soon be on-boarded as an implementing partner in health sciences. In response to the funding cap issue, he added that the regulatory environment needed to be considered as a factor. He acknowledged that not enough is being done to support more venture capitalists and said commercialisation efforts had taken a knock.

NRF response
Dr Obokoh noted the comments and would consider them for continuity and future planning. She called on the CEO and CFO to respond to operational matters.

Prof Nelwamondo explained that KPI targets were set in the year before the impact of Covid-19 was clear. Changes had to be made without knowing how the system would respond. The cohort of young scientists were found to be very interactive and tech-savvy which significantly increased the number of people that could be reached through online engagements. It could not have been foreseen how many people would be able to interact with the NRF in the online space, at the time when the targets were set. The over-achievement was not necessarily due to under planning but came as a result of how the system responded to the changing environment. He stated that the issue of young people and people living with disabilities was included in the 2020-25 Strategic Plan but it was unfortunately not included in the summary reflected in the presentation. The funding for students living with disabilities depended on the size of the pool that required funding. He acknowledged that the resources available were not enough to fund research projects. He called on the Department to reflect on the approaches followed to address the funding gap. The budget cut of R763 million affected a number of aspects that were not foreseen.

Dr Beverley Damonse, Group Executive: Science Engagement and Corporate Relations, NRF, agreed that the NRF was not in the business of training journalists. But the organisation does support and drive science communication and there was no better time than during the Covid-19 pandemic to do so. The issues of trust and integrity in science come to the fore through all media platforms on a daily basis. Communication with the public depended on the level, type and integrity of communication. With the support of the DSI, a Youth Science Technology Journalism Programme had been developed long before the Covid-era to sway the level of science and technology content within the media. It is important for the public to critically engage with science if societal issues were going to be addressed. Science graduates and unemployed young people are being trained in the protocol and application of journalism skills in partnership with other entities including the Media Development Agency and the World Science Journalism Forum. The aim is to develop graduates with a science background to talk and write about science. The NRF had partnered with community radio stations, largely in rural areas and found that the programme was starting to make a difference in the engagement value of the different languages in which the articles are being produced.

Dr Aldo Stroebel, Executive Director: Strategic Partnerships, NRF, focused on the low uptake of researchers. There is a huge demand for funding for researchers. Due to limited funding, not all applicants get approved. There is an annual funding inadequacy of R150 million for established researchers in some specialised areas. Covid-19 had the effect of multi-year funding for beneficiaries and was still having an impact on the system. Many countries stopped funding during the pandemic hence the lower uptake of matching funds. A general challenge was the low uptake of specialised research areas either due to a low base of researchers or in areas of strategic and geographic advantages that guide investment. Part of the responsibility of the NRF is to work closely with the research community to identify areas where an increase in quality is needed. In collaboration with the DSI, the NRF will in 2023, announce stronger university programmes for longer-term engagements in areas of need and the expansion of the quality and quantity of research output. The quality of applications to the NRF must be improved in order for higher qualifications or refundable rates for researchers. The low number of persons living with disability cohort could be linked to the reporting aspect of NRF grant applications. A review is underway to ensure that applications of persons living with disabilities is recorded in order to have an understanding of the true number and to report accordingly.

Dr Bishen Singh, CFO, NRF, noted that funding constraints were a reality in the public sector. Thanks to NT and the government, the R763 million budget cut had been restored. The NRF was focusing on aggressive revenue diversification models through local and internal partnerships and was expecting to break the R5 billion income mark for the first time in the current financial year. The NRF embarked on an extensive range of initiatives to bolster the revenue stream for students and researchers.

The Chairperson remarked that she had lost connection and missed out on a great deal of the responses. She was trusting that the Secretariat had adequately captured the responses. Questions not sufficiently responded to would be followed up in writing.

CSIR response
Prof Majozi said some of the comments by the TIA and NRF about the over and under achievement of targets also applied to the CSIR. Setting realistic targets was a topic of discussion between the executive and the board at the last strategic session. The year started with a secured income of between 40 and 50% which meant that a significant level of risk was factored into the plan that was submitted to the shareholder. This aspect must be considered when the performance is interpreted. The CSIR generally undergo a vigorous planning process to determine realistic targets informed by historical performance, existing risks and ambitions in terms of the goals of the organisation. For example, the Patent Granted target was exceeded by 100% but the process was outside the control of the organisation. The target not met in relation to female researchers is attributed to the resignation of one researcher which reduced the outcome from 20% to 13%. The NRF regards the issues of gender and race as important and was committed to creating more opportunities in areas where students living with disabilities could be accommodated. Factors outside the control of the CSIR, e.g. economic growth of 2%, had a ripple effect throughout the system. In an environment of declining income, the NRF is forced to do cost containment, which meant that the organisation was able to do less. The issue of impediments for SOEs to use the services of the CSIR had been raised with the Committee before. The most significant impediment for the CSIR to deliver on its mandate is the public procurement process which NT was vigorously enforcing. It limits the capacity of the state to use the capability that was created by the government. The CSIR would have a far greater impact if this issue could be addressed. However, unlocking this issue was a constant battle in terms of missed opportunities related to projects that the CSIR was unable to deliver. The matter remained unresolved but was outside the control of the CSIR.

Mr Mabindisa said the organisation was placing a deliberate focus on gender mainstreaming. Recruitment efforts and specific programmes directed towards women’s empowerment over the past two years resulted in a 39% increase in the number of female researchers. Strategic activities, to educate employees on the issue of GBV and femicide, are being addressed through comprehensive wellness programmes and various forums, ranging from the Men’s Conference to the Women’s and Youth Forums. Various research development programmes are in place to mitigate the decline in Chief and Principal Researchers and to grow senior researchers with a focus on transformation. A framework had been created to retain the cohort of Chief and Principal Researchers. The 28 graduates were employed in various fields, including mechatronics, electrical and chemical engineering throughout the nine clusters of the Department. The journey with the TVET Learning Factories started two years ago when the Master Learning Factory was piloted at the Eastcape Midlands Technical and Vocational Training College. The college was partnering with the automotive industry, e.g. Volkswagen and Continental Tyres to train students interested in this field of study. The model would be replicated in the remaining 17 TVET colleges. The plan is to have at least two Learning Factories in each province.

Dr Malinga explained that the Gauteng survey was outsourced to an external company under the supervision of the CSIR. The CSIR was overseeing the collection of data at taxi ranks to ensure its credibility and validity. The analysis, interpretation of data and compilation of the report that was published was done by the CSIR. The second edition of this work would soon be launched. Outsourcing allows the CSIR to extend the work by involving young unemployed people to collect and record the data. The interpretation and big data analysis are done by the CSIR.

Dr Maserumule said the Impact Catalyst has a presence in the four provinces where there are mining activities, i.e. Limpopo, Mpumalanga, North West and Northern Cape. The 20 partners are spread through multiple towns where operating entities are supporting the local schools and businesses to improve the quality of the lives of mining communities.

DSI response
The Chairperson called on the Department to respond to some of the comments made by the entities. In addition, she wanted to know at what stage the TIA Ministerial Review was. The issue of NT enforcing regulations was an ongoing concern because it was restricting the CSIR to create an enabling environment to earn revenue within the system. She encouraged the entities to create synergy within the system by aligning their plans to the Decadal Plan. She asked if the CSIR Board had a proper plan in place to ensure that there is no disjuncture between the end and beginning of the terms of the Boards. She understood that Dr Obokoh’s term at the NRF was coming to an end and wanted to be reassured that the transition process would be seamless.

Dr Muofhe replied that the Ministerial Review had been concluded. The Minister would be communicating the recommendations with the Board in the near future. The CSIR and NRF Board processes would be concluded by the end of November 2022. The current Boards had received extension letters to cover the end of their terms and to ensure a seamless transition process.

Dr Muofhe remarked that the CSIR is the most significant technology asset of the country but we seem not to value the asset in the same way as other countries. The CSIR is the first port of call for technology in South Africa. The Department was working with the CSIR team to package their capabilities in terms of lost opportunity costs in terms of services not being utilised to the benefit of government departments and entities. He explained that the opening up of online platforms during the Covid-19 lockdown period resulted in the explosion of targets linked to training. However, the planning and target setting of some departments and entities were found to be poor and in need of improvement.

Dr Muofhe noted that political commentators started commenting on health matters which was not helpful. Young graduates are being trained in science communication to help the Department deal with fake news. He drew attention to the launch of the Square Kilometre Array (SKA) when training in science journalism provided the Department with trained people who successfully communicated the value and importance of the project.

Dr Muofhe said the Department was committed to spatial transformation including the transformation of women, youth and people living with disabilities. The Department had demonstrated that working with partners, science, technology and innovation could contribute towards the improvement of society, therefore more funding was needed.

Dr Maserumule said most of the reporting on gender equality and social inclusion had in the past focused on the issue of procurement. Engagements over the past two to three months shifted the focus on the incorporation of broader issues into the plans of entities in order to do comprehensive reporting for the Department. The indicators should consequently improve over time. On the issue of over-achievement of targets, she stated that scientists were by nature modest individuals and were more likely to under-promise and over-deliver in order to not lose credibility around missing targets. She explained that R&D funding had not increased since the 2008 economic downturn. South Africa should therefore change its approach to responding to challenges. For example, the number of people going without food increased during the Covid-19 period. The state responded through feeding schemes. She argued that a two-pronged approach was needed by increasing funding towards immediate hunger but it would be more effective to ensure that hunger does not occur in the first place. She was pleased with e-verification system that was introduced by the TAI and commended the entity for moving in the right direction in addressing issues that were relevant to the South African people.

Chairperson’s closing remarks
The Chairperson thanked colleagues from all the entities as well as the Members who participated in the engagements. She also thanked the citizens who were watching proceedings on the various platforms and those who continuously raise concerns that enabled the Committee to hold themselves accountable because the Members were an extension of the citizens that they were representing in Parliament. She encouraged the entities to always strive for clean audits, coupled with impact because good governance and good management were meaningless if it does not change the lived realities of citizens. She found it refreshing that the Department was moving beyond dealing with issues of governance and management to a more robust discussion about impact. The Committee was expecting the Annual Performance Plans to reflect how matters of irregular expenditure, vacancies and regression in representation would be fixed. In reflecting on the performance of departments and entities, the Committee needs to ascertain what improvements were needed going forward. For this reason, she wanted to understand the issue of science journalism and reporting in indigenous languages to better correlate planning and outcomes. The Committee was aware of the budget cuts hence the question was raised of whether conservative planning was due to budget constraints. She was expecting the observations and recommendations to be considered and reflected in the action plans for the next financial year guided by the Auditor-General’s recommendations. She urged the entities to ensure that no one is left behind with all the great innovations. Developments need to be informed by inclusivity, representation and impact. The CEO’s should be promoting their innovations in engagements with other departments and utilise the platform to lobby and promote the sciences. The audit action plans should be submitted to the Committee within a month after the finalisation of the Committee Report on the Budgetary Review and Recommendation process.

The meeting was adjourned.
 

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