DIRCO & African Renaissance Fund Q1 & 2 2022/23 Performance; with Deputy Ministers

Meeting report

The Committee had a moment of silence for South African rapper Kiernan “AKA” Forbes and the people of Syria and Turkey who had recently experienced a devastating earthquake.

Deputy Minister's opening remarks

Ms Candith Mashego-Dlamini, Deputy Minister of International Relations and Cooperation, said DIRCO and the African Renaissance Fund (ARF) had finally put the COVID-19 pandemic behind them and had resumed all in-person activities.

DIRCO achieved 100% of its targets in this reporting period, which built on the previous quarter’s work. Engagements undertaken during this quarter focused on DIRCO’s contribution to tackling the persistent triple challenges of poverty, unemployment and inequality. The Department would continue to utilise foreign policy to tackle domestic challenges as part of South Africa’s national interest.

 She said the ARF continued to be an important instrument supporting South African foreign policy. It was a crucial foreign policy tool that sought to enhance development assistance and cooperation with a dedicated focus on the realisation of the African Agenda. Through the ARF, DIRCO continued its commitment to the African Agenda. The project in Cabo Delgado in Mozambique would assist with socio-economic issues post-conflict in this region.

DIRCO and the ARF have made significant progress in implementing their annual performance plan targets. The allocated budget would be fully utilised by the end of the financial year, especially the allocated budget for the ARF. The presentation would give further details and set out steps on how DIRCO would deal with underperforming targets.

DIRCO's first and second quarter performance

Ms Brenda Molatlhegi, Chief Information Officer: DIRCO, said the Department had achieved all 21 of the 21 targets set for quarter one, and all 23 of the targets set for the second quarter of 2022/23.

Programme 1: Administration

• There was one progress report on implementing the digital strategy reflecting achievements against the strategic objectives to modernise data, storage, applications, network, telephony and cybersecurity infrastructure.
• The London hub infrastructure was delivered. Regarding automated digital business processes and integrated business information systems, the applicable risk assessment was finalised. In respect of securing and protecting the Department’s digital environment and users in cyberspace, Microsoft security relevant to exchange online protection, and tuning threat protection policies, were updated and applied.
• Deliveries were concluded for Africa missions. The setup of servers in the head office was completed, and the shipping of London infrastructure was concluded.
• Automated digital business processes and integrated business information systems procurement processes were initiated. Concurrence on the licensing was finalised. A response from National Treasury on the deviation request had been received.

Programme 2: International Relations

• A successful state visit by the President of Guinea-Bissau took place in April 2022, involving high-level meetings related to the renegotiation of defence cooperation through memorandums of understanding (MOUs), with agricultural and health-related cooperation and support.
• The mission participated in the Fifth Session of the South Africa-Botswana Bi-National Commission (BNC) in April 2022, where the parties agreed to new areas of cooperation such as media, information, publicity and labour. Additionally, one inter-departmental meeting was held for the BNC with Botswana on 5 April 2022.
• The mid-term review of the South Africa-Zimbabwe BNC was held in May 2022, where parties agreed to include arts, culture and police matters and the Zimbabwean mid-term as areas of cooperation. Adherence to time-frames was highlighted.
• The Ninth Egypt–South Africa Joint Commission for Cooperation led to improvements in bilateral cooperation in the sectors of agriculture, veterinary services, health and education.

High-level meetings were held during the reporting period in Zimbabwe (official visit by the Minister of Primary and Secondary Education of Zimbabwe); Botswana (commemoration of the 28 years of diplomatic relations); Lesotho (meeting with the Prime Minister of Lesotho by the High Commissioner); Cote d’Ivoire (SA-Cote d’Ivoire political and Ministerial consultations); Senegal (forthcoming elections); Burundi and Somalia (Independence Day celebrations); Uganda and Kenya (introduction of newly appointed diplomatic representatives); Eritrea (assistance with consular-related issues); and Ethiopia (meetings regarding requests for humanitarian assistance).

(See the presentation for further details)

Programme 2: Regional Integration

• In terms of the implementation of the Regional Indicative Strategic Development Plan (RISDP) and socio-economic development, and following the approval of the RISDP 2020-30 by the Southern African Development Community (SADC) Summit in August 2021, the SADC Secretariat had worked on the costing of the implementation plan. This was undertaken in phases which included the costing of regional coordination, costing of interventions implemented at the national level, and thereafter, costing of projects and programmes.
• In implementing the regional cooperation and integration agenda, SADC was guided by the revised RISDP 2020-2030 and Vision 2050. The 42nd SADC Summit approved the RISDP national coordination cost estimates.
• In terms of political and security Integration, South Africa participated in the SADC Organ Troika Summit held in the Democratic Republic of Congo in August 2022. The Summit deliberated on political and security developments in the region, which included a report on the Kingdom of Lesotho and the Kingdom of Eswatini, amongst others.

(See the presentation for further details)

Programme 3: International Cooperation

South Africa participated in the International Migration Review Forum (IMRF) high-level event. The overall cross-cutting key issues that were highlighted throughout the IMRF deliberations included:

• The need to address structural factors through solidarity and international cooperation.
• The importance of adopting a human rights-based approach towards migration governance.
• Acknowledging global inequality and strengthening the principle of shared responsibility.
• Reducing adverse drivers of forced migration and the possibility of expanding pathways for legal migration.
• The impact of climate change on migration.

Programme 4.1: Public Diplomacy

Twelve sets of key messages were distributed to missions and the head office on domestic and global developments. Three public participation programmes were held by political principals where audiences were engaged on domestic and international developments.

Financial Performance: Quarter 1

The actual total expenditure for the first quarter of the 2022/23 financial year amounted to R1.732 billion compared to the cash drawings of R1.994 billion, representing a variance of 13% lower than what had been projected. The variances were explained as follows:

• Programme 1 spent R335.1 million against the projected expenditure of R415.1 million. The low spending was mainly attributable to the lease contract for the state protocol lounges that had not been renewed by the Department of Public Works and Infrastructure (DPWI) and property maintenance projects, as missions were finalising procurement process for property maintenance projects.
• Programme 2 spent R745.9 million of the projected expenditure of R890.7 million. The low spending was mainly on operating leases due to delays in securing permanent accommodation for transferred officials who were transferred to missions in the first quarter because of the summer months in Europe and shortages of accommodation in America, due to high demand during this season.
• Programme 3 spent R113.5 million of the projected expenditure of R135.6 million. The lower spending was mainly due to the high vacancy rate in the branch at the senior management service (SMS) level. The Department was in the process of filling the positions.
• Programme 4 spent R63.5 million of the projected expenditure of R72.0 million. The low expenditure was attributable to projected international travel which did not take place.
• Programme 5 spent R473.5 million of the projected expenditure of R480.7 million. The low spending was mainly due to the lower exchange rate on payments for the 2022 annual membership contributions to international organisations.

Financial Performance: Quarter 2

Actual total expenditure for the second quarter of the 2022/23 financial year amounted to R1.486 billion, compared to the projected expenditure of R1.621 billion, representing a variance of 8% below what had been projected. The variance analysis per programme was explained as follows:

• Programme 1 spent R350.6 million of the projected expenditure of R501.3 million. The low spending was mainly due to delays in the appointment of professionals for planned projects for renovations and maintenance. To mitigate the slow spending on capital projects, the Department signed an MOU with the Government Technical Advisory Committee (GTAC) to assist with capital projects.
• Programme 2 spent R891.4 million of the projected expenditure of R894.0 million, and was in line with the projected expenditure.
• Programme 3 spent R154.3 million of the projected expenditure of R126.6 million. The over-expenditure was mainly attributable to the education allowance paid in August 2022.
• Programme 4 spent R75.9 million of the projected expenditure of R74.8 million. The increased spending was mainly due to increased international travel.
• Programme 5 spent R13.4 million of the projected expenditure of R23.8 million. The low spending was mainly attributable to humanitarian assistance projected in the second quarter but not paid, as humanitarian assistance was mainly reactive.

ARF's first and second quarter performance

The ARF was able to achieve three out of its nine targets and four were partially achieved. There was non-achievement on two targets.

Two projects evaluated for mediation and conflict resolution were still under consideration, leading to the target not being achieved.

No project for technical assistance to support elections was received however it was anticipated that the project for technical assistance to support elections would be received and funded in the following quarters, leading to the target not being achieved.

Financial Performance Quarter 1& 2

Ms Molatlhegi referred Members to slide 8 of the presentation, which broke down the total budget allocations for the ARF.

The agricultural project considered in Q2 was subsequently funded in Q3 for R34 million. The receivable from Cuba was payable bi-annually in June and December, and the June repayment was received as per the agreement. Total liabilities were made up of committed projects and amounts payable to DIRCO for project implementation.

Deputy Minister Mashego-Dlamini emphasised that there was a process currently underway to use underutilised ARF funds.

Discussion

Mr W Faber (DA) said he still did not understand why Cuba had received an ARF loan, as ARF funds should be used on the African continent. He asked what the duration of the Cuba loan was, and how much had been repaid so far.

Mr D Bergman (DA) said he previously raised questions about DIRCO's and ARF’s goals and objectives, and whether they were measuring the right things. The Department had still not aligned its goals and objectives. DIRCO was still choosing the easy way out, but with the new Director-General, it had a chance to align its performance indicators to better measure performance. DIRCO needed to look at how it would grow as an organisation and establish performance indicators to measure growth. He urged the Director-General to relook at their performance indicators.

He said nothing in this APP had addressed the trouble DIRCO was having with its ambassadors and heads of mission regarding its properties. DIRCO was currently having trouble finding properties for ambassadors and consul generals, specifically in the USA for Chicago and Washington. He asked if DIRCO had found a property for the ambassador, and how much this property would cost. He also asked whether the High Commissioner in Germany had a residence. These were the kind of indicators that the Committee should do oversight on. These would tell the real story of what was happening in DIRCO. There was no need to report on what speeches were made and what events were attended.

South Africa should also start looking at the free world. DIRCO needed to go after economies such as the USA, UK and Europe, rather than countries engaged in war. Russian warships were docking in Durban, and South Africa would have to relook at some of the relationships and partnerships it had formed and whether they were getting any benefit from them. There needed to be a fair balance so South Africa could benefit from its relationships. DIRCO needed to put into action what was outlined in the national interest document.

There were ambassadors from other countries in South Africa that had not presented their credentials, and this was embarrassing. This should not be happening in South Africa, and DIRCO should ensure that ambassadors present their credentials to the President.

The performance indicators were indicative of what was happening in DIRCO. He suggested the Committee look at key performance indicators, and make a recommendation to the Department.

Mr B Nkosi (ANC) welcomed both reports on the progress made. He asked in what way the work DIRCO and the ARF were doing was related to the African Continental Free Trade Agreement (AfCTA) and if there was a link between the work DIRCO was doing and what the Department of Trade Industry and Competition (DTIC) was currently doing. What role did DIRCO play in ensuring partners endorsed the roles of AfCTA? He said the achievements highlighted the work done by DIRCO, but he asked to what extent it worked with other departments regarding bilateral meetings, and what roles other departments played.

He said a focused meeting needed to be held with DIRCO on information communication technology (ICT) matters and on the progress made on the South African Active Disabled People's Association (SAADPA). DIRCO needed to report on progress to the Committee every quarter.

He said South Africa would align with anyone who benefited South Africans, and it did not help it to continue with colonial relationships that were not beneficial to South Africa, and Africa as a continent.

Ms T Msane (EFF) recommended a proper meeting be set up between DIRCO and the Committee to discuss Programme 2, emphasising meetings and the outcomes concerning agreements and MOUs signed. The way DIRCO presented its performance indicators was done by ticking boxes, and was not in-depth as to what was happening and what progress had been made on programmes. She asked if DIRCO had had to rescue any South Africans from Turkey or Syria, and what role South Africa played in assisting Syria and Turkey. The Committee had previously asked DIRCO to submit a report on the multilateral positions held by South Africans, but it had failed to submit the report. There were currently 63 South Africans holding these positions, but the Committee did not know in which organisations. She asked DIRCO to submit a list and what their roles were.

She said this performance report was rushed, and did not reflect or account properly for issues DIRCO had dealt with during these last two quarters, and what had been presented did not do justice to what the issues were in the Department. No progress or information was given on properties sold or missions that had been closed.

She asked the Committee to welcome the joint naval drill that would be happening in Durban. She said certain people want to speak to terms aligned only with them, not the country. The Committee needed to have a special meeting for Members to unpack their South African alliances and what South Africa stands for.

Mr T Mpanza (EFF) welcomed the performance of DIRCO and the ARF. There would always be disagreements on the loan to Cuba, but that spoke to the dynamics of the Committee. The ARF had an emphasis on Africa, but did not exclude other countries -- it was not only an African fund. ARF could fund any sensible programme around the world.

He agreed with other Members that the targets were not in line with SMART (specific, measurable, achievable, relevant and time-bound) principles. Some of the targets were things that were beyond the ARF's control, and some of them were not realistic.

He asked what progress was being made with the African Free Trade Agreement. DIRCO had been asked previously to outline how investment meetings and engagements benefited ordinary South Africans. He agreed there should be a focused meeting on Programme 2 and what the engagements meant.

DIRCO's response

Mr Clayson Monyela, Acting Director-General, DIRCO, responded that South Africa was providing assistance and aid to Syria and Turkey, and had deployed search and rescue teams. It also provided sniffer dogs through the K-9 team. DIRCO was also assisting through the humanitarian aid directorate, and this was going through approval processes within the Department to provide aid to organisations on the ground. It also looked at how the ARF could aid Turkey and Syria.

He said underspending was a problem across directorates in the Department, and senior management was dealing with the matter. This was a serious issue, since only weeks of the financial year were left. External factors had also contributed to underspending, but senior management had prioritised this issue. ICT was one area where management was looking at addressing challenges.

He agreed that there needed to be a dedicated session with the Portfolio Committee for DIRCO to present on the work that was being done, including the issue of expenditure. The Department would also speak on progress it had made on key projects.

DIRCO had noted the recommendation on targets and indicators, and would incorporate the changes in the new financial year. There would be a special focus on making performance indicators speak more to the business of the Department and the consular services rendered.

DIRCO had noted all the issues raised, and would submit a list of all multilateral positions held by South Africans.

Deputy Minister's response

Deputy Minister Mashego-Dlamini thanked the Chairperson, and expressed appreciation for all the issues raised by Members.

She said the issue raised on the Cuban loan had been answered several times by the Minister, the Director-General and the President. In 2017, Cuba was loaned R147.6 million, and they paid back R63 million. It would settle the loan in full in June 2026. She was aware the DA was aggrieved over this issue, and had indicated they would take this matter further -- and had the right to do so. This loan had been done through ARF and was signed off by President Zuma in 2010, with Cabinet's agreement. This deal was done through the right protocols, and the ARF had followed all the relevant legislation.

She asked Members to appreciate the work DIRCO did, and said it would work to ensure its key performance indicators (KPIs) were in line with the work being carried out by the Department. The Director-General addressed these issues through strategic planning sessions, which would be addressed in the 2023/24 financial year.

The report on the accommodation of ambassadors and consul generals was not part of the first and second quarter reporting, but DIRCO was willing to present on this matter if the Committee needed information on it.

Some of the issues raised were issues involving line departments, and there were reports on these matters. Many MOUs had been signed but were not operational, and DIRCO was reviewing all the MOUs and agreements.

She said the accreditation of ambassadors' process did not take longer than six months in South Africa. Sometimes there were instances of countries not submitting all the accreditation information --for example, sometimes, an ambassador would have personal businesses and own properties in the country, and this information would often not be submitted and this delayed the accreditation process.

There would be a progress report on SAADPA. Top management discussed the report, which would be taken to Cabinet and presented to Parliament soon.

She said Cabinet had not yet discussed how to support Syria and Turkey, and DIRCO appreciated what the Gift of the Givers was doing in this regard. Syria was under sanctions, and it was currently difficult to provide aid to this country.

DIRCO had a very slow pace of filling vacancies. The Director-General was in the process of sorting out this matter, since it might become an audit finding. The Department would give a progress report on this, on properties sold and missions closed so far.

The Chairperson thanked both Deputy Ministers for attending the meeting, and Members for participating in this accountability exercise.

He said Cuba was not defaulting on the loan, and the Committee must congratulate Cuba on honouring this agreement.

The meeting was adjourned.