SANParks, iSimangaliso & SANBI Q1 & 2 2022/23 Performance; with Minister

Meeting report

The Chairperson opened the meeting and welcomed all present.

South African National Biodiversity Institute (SANBI) Q1 performance

Prof Edward Nesamvuni, SANBI Board Chairperson, informed the Committee that 87% of their performance target was reached in Q1 and Q2 and improved performance of reaching 41 of the 44 targets were reported in Q3. An external audit improvement plan was finalised and irregular expenditure was addressed by implementing corrective measures. The financial position and financial sustainability of the SANBI were satisfactory, especially with additional income streams like the appointment by the South African Police Services (SAPS) for assistance with genetic forensic scientific projects.

He reported that the Human Capital development projects reached 1050 unemployed youth and a biodiversity skills and transformation strategy was in place.

Adaptation and climate change were receiving specific attention through funds accessed by the Green Climate Fund to the value of $30 million and $25 million, respectively.

Mr Shonisani Munzhedzi, SANBI CEO, briefed the Committee on the four programmes under which the SANBI aimed to fulfil its mandate. Programme 1: National Botanical Gardens and National Zoological Gardens to promote the conservation and awareness of South Africa’s biodiversity and manage the National Botanical and Zoological Gardens as centres of social cohesion and valuable nurtured recreational facilities.

Programme 2: Biodiversity Science and Policy Advice was to facilitate the conservation, restoration and sustainable management of biodiversity assets and ecological infrastructure and unlock nature’s contribution to people through providing appropriate knowledge, evidence and policy support and piloting innovative nature-based solutions toward achieving National Development goals.

Programme 3: Human Capital Development and Transformation had to contribute toward the development of the next generation of biodiversity professionals.

Programme 4: Administration had to promote sustainability through effective resource utilisation income generation and good governance.

SANBI achieved 87% of its targets which amounted to an achievement of 38 out of 44 targets. Five targets were works in progress and one target was not achieved.

Due to severe weather conditions, the number of new developments or refurbishing infrastructure projects for new botanical gardens was delayed. A catch-up plan was arranged with the contractor for implementation including increased capacity through SMMEs appointed by the contractor.

The development and implementation of the repositioning strategy and implementation plan for Nkosazana Dlamini-Zuma Municipality (NZG) were delayed due to the requirement to obtain a Preferential Procurement Policy Framework Act (PPPFA) exemption. The approval for the exemption to the PPPFA Regulations was received and the appointment of a service provider would now proceed.

Only 74 of the envisaged 90 black biodiversity professionals were accommodated through Human-Centred Design (HCD) interventions in the SANBI. This was due to some Work Integrated Learning (WIL) students that were declined due to accommodation constraints. The remaining WIL students would join the programme at a later date.

The number of Higher Education Institutes (HEI) participating in the South African Graduate Employers Association (SAGEA) was not reached as the procurement was still in progress.

The targeted revenue through resource mobilisation was not raised. The timing difference between the planned programme and the actual realisation of funds proved challenging. New resources through new initiates’ were being put in place. These would result in additional new income over the next three financial years.

The appointment of a service provider for the five year financial sustainability plan was delayed due to a delay in initiating the procurement process. The scheduled activities would be expedited to align with the annual plan.

Ms Lorato Sithole, SANBI CFO, informed the Committee that all grants had been received. There was a timing difference between the budget and the actual realisation of external funded projects. Income received during the quarter under discussion included the Covid-19 insurance claim relief. Trading conditions are improving due to the various market interventions implemented to attract local visitors and promote outdoor open spaces. Higher interest rates and slow spending contributed to higher amounts of cash being available for short-term investments.

Savings had been realised under employee costs due to Groen Sebenza interns and critical vacancies which were still in the progress of being filled. In the meantime, temporary resources were being used to fill the gap. There was a slow start to Q1 and Q2 operating expenses. It was expected that more expenses would be flowing through in Q3 & Q4, particularly as the Groen Sebenza and Green and Open Space Management projects gained traction. A variance on capital spending was required due to the slow start of the projects planned for this financial year, impacted by the PPPFA advisory note from National Treasury. In Q2, combined efforts were made to expedite the procurement backlogs. With these efforts, a commitment of 93% of the annual budget was R77.4 million out of the R83.3 million budget allocation.

South African National Parks (SANParks) Q1&2 performance

Ms Pam Yako, Chairperson of the SANParks Board, provided an overview of the progress made by the SANParks. She indicated there had been improvements but they were striving to improve further in Q3. Performance improvements were reported regularly to the Board committees and an Audit Tracker was currently in place that was monitored by the Audit and Risk Committee of the Board. Some areas needed strengthening either due to under-performance or a need for better implementation. Transformation within the sector was also addressed through a number of projects. SANParks was looking at tourism safety and were serving on several fora to address this issue.

There has been an improvement in tourists visiting the parks both locally and internationally, but it has not returned to the pre-Covid number. The organisation has improved in its targets and was also improving in implementation abilities.

Mr Property Mokoena, Acting SANParks CEO, informed the Committee that to improve youth employment and SMME development, the SANParks has employed 100 unemployed graduates for a 2-year internship programme through the Groen Sebenza Programme, and 50% of these graduates would be absorbed. SANParks has partnered with Universities for the training of young scientists and conservationists. With the rollout of environmental education programmes targeting schools, 247 schools have visited National parks in the current financial year. The implementation of the Kids in the Park Programme in partnership with the Department of Forestry, Fisheries and Environment (DFFE) and the Department of Basic Education. To date, 5348 jobs for youth have been created through the Expanded Public Works Programme (EPWP) and 582 SMMEs had been contracted through the EPWP.

An engagement plan for stakeholder management at Table Mountain National Park (TMNP) was developed and monitored. The park forum has been established and the TMNP is functional with regular engagements taking place. Baboon strategic management has been developed and released for stakeholder comment and input.

SANParks works closely with the SAPS to enhance crime prevention and visitor safety in hotspot areas around the Kruger National Park. Signage and communication around the Park have also been improved.

The Tourism Investment Summit was held in March 2022 to expose the SANParks Public Private Partnership opportunities to investor’s communities and private sector partners. To date, seven PPP opportunities have been advertised, five have been awarded and two are at the tender stage.

The first target that was not achieved was the number of approved animals delivered to African Range States as per Ministerial approval. The Mozambique State Vet import permit required that the gaming of giraffe was to target a tour of a TB-free zone. The target was requested to be removed as part of the mid-term review.

The number of animals delivered to communities and individual emerging game farmers was not achieved because fewer animals were captured and delivered in Q2. This was due to a shortage of animals from earmarked National Parks, including some of the drought-stricken National Parks like Addo Elephant Park, Camdeboo and Mountain Zebra National Parks in the Eastern Cape and Karoo National Park in the Western Cape. Amendments to the national target from 1000 to 350 were requested in the mid-term review.

The target to improve the participation of Previously Disadvantaged Individuals (PDIs) in the SANParks business was not achieved. Only 10.96% of the tender below R1 million and 0% of the tender over R1 million was awarded to Qualifying Small Enterprises (QSEs). The under-achievement of QSEs was attributed to the halting of bids by the National Treasury. More tenders were planned for Q3 and it was anticipated that the amount required to be spent on QSEs would be met by year-end.

Only 45% of the project plan for the Organisational Re-engineering Programme was completed. The approach to the Organisational Re-engineering process has been reconsidered to be aligned with the broader Vision 2040 project. Amendment of the indicator and target would be pursued through the Mid-term review.

The revenue target through the sale of wildlife was not reached as the number of animals available for sale had to be revised down due to challenges brought about by prevailing drought in the Eastern Cape. This delayed the appointment of the Culling Service provider and the appointment of an Online Auctioneer. The culling tender process was on target and would be awarded in Q3 allowing the culling process to be undertaken within the same quarter. The online auction process was also on target, with a service provider being appointed.

The Human Capital Management strategy was not approved in time and could therefore not be implemented. Following a workshop with EXCO, the strategy would be implemented after Board approval.

The number of succession planning interventions was not reached as divisional development plans were still outstanding. This would be corrected in Q3.

The SANParks Digital Strategy was not implemented as the system configuration was still in progress and technical designs had to be reviewed. This would be done in Q3.

The Phases of Enterprise Resource Planning (ERP) could not be implemented as the specifications still had to be workshopped with all divisions. This would be finalised in Q3.

The actual revenue amounted to R1 592 billion against a target of R1 567 billion resulting in a positive variance of R25 205 million. The positive variance was attributable to better-than-expected performance from exchange transactions reflecting a total of R1 080 billion against a budget of R1 052 billion.

The total expenditure for the period under review was R1 352 billion against a budget of R1 468 billion resulting in a positive variance of R129 811 million mainly due to savings on operating expenses. The total expenditure would increase as the year progressed.

The SANParks realised a net surplus of R171 654 million against a budgeted net surplus of R16 880 million, reflecting a positive variance of R154 775 million.

Briefing of the iSimangaliso Wetland Park Authority Q1 performance

Inkosi MI Tembe, iSimangaliso Board Chairperson, informed the Committee that of the 44 output targets 42 was achiev, resultinged in a 96% success rate. One target was not achieved and the other was a work in progress.

Mr Sibusiso Bukhosini, Isimangaliso CEO, indicated that the floods impacted on visitors and revenue generators. Out of the expected 95% target, only 81% was achieved.

A total of 2500ha of the land was under water and adaptable management was put in place to enable them to move forward. This required a review of the estuary management and maintenance plan for which a consultant was appointed and should be finalised by August 2023.

The cleaning of vegetation continued around the estuary after the necessary appointments were made and engagements with farmers were completed.

Ms Qhamu  Mntambo, Isimanaliso CFO, indicated that the R13 million targets for revenue in Q1 and Q2 were reached. The expenditure over the same period was maintained and the entity is liquid.

See attached for full presentations

Discussion

Ms H Winkler (DA) asked the SANBI how much they received from the Green Climate fund, what it was spent on and how much they were still waiting for. She also asked if their targets were adjusted to be in line with the COP 30x30 targets.

She referred the SANParks to the issue of the high number of rhino poaching occurring at the Kruger National Park. This was reflected in an independent report on corruption which was rife at the Kruger National Park. This report alleged that as much as 70% of the staff was corrupt. She raised her concern about the targets and asked if they were still aligned with the COP 30x30 targets. She also wanted to know what they did to support emerging farmers.

Ms Winkler asked Isimangaliso what the next step in the estuary management plan was and wanted to know if they had considered calling a state of disaster as conducting an Environmental Impact Assessment would not be necessary. It was necessary to have a long term management plan.

Ms A Weber (DA) requested that the SANParks prepare a full presentation to the Committee on land claims. It was reported that 50% of interns are training; what is the future or plans for the remaining 50%? She expressed her support for the project that allowed schools to visit the SANParks facilities for free. However, it was aimed at the poorer community schools, and it was a concern that with the cost of travel, accommodation, and meals, she was not sure it was accessible for the intended schools. In view of recent incidences at the Kruger National Park, what were the arrangements for cooperation between rangers and the SAPS to ensure the safety of the tourists?

Ms Weber expressed her concern about the target of donations to emerging farmers not being reached due to the unavailability of animals. She wanted to know why no animals were available, what effect the drought had on the availability of animals, what plan was in place and how many animals died due to the drought. She also asked what criteria and assessments were used to determine which emerging farmers would receive donations.

Ms Weber asked what the relation was between the culling of animals vs unavailability and who took that decision. She raised her concern about the number of rhinos and elephants that were poached. She asked how any poaching could be an acceptable rate. Finally, she requested a list of animals that were culled, the value of the animals and the reasons for the culling.

Mr N Paulsen (EFF) askeSANBI how many jobs were created through the green fund and if there was coordination with the Department of Science and Technology.

He asked the SANParks how many donated animals went to black farmers and what assistance was provided to them. He asked Isimangaliso how many farmers were affected by the floods and what was done to assist them.

Mr D Bryant (DA) asked the SANBI where the majority of the revenue that would come in would come from.

Mr Bryant also referred to the Julian Rademeyer Report. He asked if a presentation could be arranged for the Committee with the Minister of Police and the Portfolio Committee on Police also present.

He mentioned that the SANParks CEO process was concluded in November 2022 and in March 2023, there was still an Acting CEO. When would the appointment be finalised? He also asked when the high level panel would finalise the implementation, as that was necessary before there could be any progress. There was a report on a Human Capital plan; he asked when that would be implemented. He also supported the question by Ms Weber about the appointment of rangers and found it concerning that these posts were not seen as a priority or urgent posts.

Ms N Gantsho (ANC) asked SANBI if any steps were taken around accommodation constraints that resulted in the WIL students declining the programme. She also asked what measures were in place for the safety of visitors to parks and if these measures were effective.

Ms Gantsho asked the SANParks about their relationship with universities and if the youth was interested in joining the conservation field. She also wanted to know if the school visits were successful.

Ms T Mchunu (ANC) asked SANParks, with their target not met to donate animals due to a lack of animals, what their strategy was to ensure animal species do not diminish. She raised her concern about Tuberculosis (TB) in parks and wanted to know if they managed to control the spread of TB. She also asked given the time it took to appoint a CEO, was there a plan to deal with Human Resources and what the standard norm was to appoint staff.

She expressed her appreciation to iSimangaliso for the progress they made and the assistance they were providing to farmers.

Ms Winkler stated that in one of the presentations, it was mentioned that the Department commented on the Draft Basic Assessment Report for the proposed Fuleni mine. She asked if the Committee could receive the report with the recommendations and similarly for the proposed Josini Quarry report as it was important to understand what the approach to that was. She also asked what the project plan was regarding emerging farmers after they received animals from the parks.

The Chairperson asked if there was a direct link between target achievements and underspending. He felt that there should be underspending if targets were not achieved. He also asked what the assimilation rate of the people that attended the Groen Sebenza programme was.

He asked the SANParks about the allegations in the media and who commissioned the report as allegations in the report were concerning, where it was stated that half of the law enforcement officials were corrupt. He also wanted to know if appointments were made and why people were still ‘Acting’.

Responses by the Minister
Minister of Forestry, Fisheries and the Environment, Barbara Creecy, informed the meeting that she signed the recommendation for the appointment of the SANPark CEO. The process was concluded in December thereafter verifications had to be completed. The appointment would be made by the end of March.

She indicated that rhino poaching statistics were released every January and July. They had some successes and interventions like displacements and de-horning were continuing.

She acknowledged that some staff in both national and provincial parks worked with syndicates. There were some arrests at the Kruger National Park. They were in the process of doing polygraph tests on all staff and they were in negotiations with organised labour. In the meantime, they would do it voluntarily, as guilty parties put their colleagues at risk.

Minister Creecy indicated that iSimangaliso had serious setbacks due to the flooding. They were working with the community and suggestions from commercial farmers were very helpful. The Department would support the disaster management process and they were currently waiting for COGTA to proceed with the interventions.

SANBI response
Mr S Munzhedzi, CEO, indicated that the Groen Sebenza target was 1050 and the majority of the participants would either find employment where they were deployed or in another facility. The Greening and Open Space Programme also provided a number of opportunities in different fields. The establishment of gardens was a core function that required staff.

Concerning the projects funded by the Green Planet fund, he indicated that the National Department was the designated authority, but projects would follow a specific process defined by the fund. He informed the Committee that SANBI worked under the guidance of the Department to align targets to the COP 30 x 30 targets.

Mr Munzhedzi informed the Committee that the lack of accommodation for students was a concern to the SANBI; they have adjusted the stipends upwards. The SANBI does not have accommodation and it is important for alternative accommodation to be close enough that students do not require transport.

Mr Munzhedzi informed the Committee that their target, as prescribed by the Minister, was 80% and SANBI was on course to reach over 90%. He noted that programmes were multi-year and correlated with other departments like the Department of Science and Innovation.
Ms Carmel Mbizvo, Head: Biodiversity Science and Policy Advice: informed the Committee that they were making progress on the Green Climate Fund projects as seven proposals were under development. Revenue generation work was linked to donor funding and in collaboration with the Department of Science and Innovation, a number of innovations fell within this.
 

SANParks response
Ms Yako informed the Committee that the article about the SANParks corruption allegations looked at numbers. They acknowledged that there was a level of staff involvement. The board approved policies of integrity testing and implementation were set for 1 April. The SANParks funds were not enough and they were busy mobilising resources.

The framework of the 30 x 30 expansion was taken into consideration. They were looking at different models. They hoped to appoint a CEO as soon as possible. The previous CEO took up a position elsewhere and the position was advertised.

The land claims on the Kruger National Park were reported on and Judge Mosekene would be the independent facilitator to take the process forward.

Mr Mokoena informed the Committee that safety and security were dealt with in collaboration with other entities. SANParks, the SAPS, the relevant provincial Safety and Security MEC and communities worked together on this matter. He explained that the drought greatly impacted animals as they might not be as strong as was expected. He informed the Committee that auctioneering was always the first option before culling was considered. He said that TB stayed a risk in an area even if it was contained and an area was placed under quarantine.
Concerning donations of animals, it was explained that the process includes a pre-visit to ensure the area is suitable for the kind of animal that was requested. The ownership of the farm, management of the farm, security and other matters were considered. The final assessment and recommendation of the applicant was shortlisted and presented to the board. Follow-up meetings after the donation were done to ensure that the animals were cared for.
He ensured the Committee that rangers were undergoing awareness programmes, counselling and other forms of support. Counselling was also extended to the families of rangers and a hotline was available.

Ms Lize McCourt, the SANPark COO, informed the Committee that the HR expenditure was capped at 56% by the board. However, the provincial cap may differ as the nature of the work and needs may be different. A new benchmarking exercise was on the way.

Ms McCourt reported that there was a very good working relationship with universities both around students and with scientists and providing access to sites for research to be done. She said the filling of ranger positions was prioritised and some appointments had already been made.
Inkosi Tembe informed the Committee that they received support from various departments. The traditional leaders also contacted them for assistance and a plan around their involvement was being developed.

Mr Bukhosini informed the Committee that they would finalise the adaption of the management plan, but a state of disaster was still considered. The scrutiny and adaption of the maintenance plan were important to ensure that future situations were planned for and a repeat of the backflow was avoided.

Ms Winkler reiterated that climate change had a huge impact on the lives of people. She asked if a broader strategy underpinned the projects taking safety and resilience into consideration.

Ms Nomfundo Tshabalala, DG, DFFE, indicated that the department acknowledged that the issue of climate change must be taken into consideration. Resources were requested from National Treasury and they were not only relying on donor funding as the matter was prioritised in projects and taken into consideration when planning.

Mr Munzhedzi informed the Committee that existing projects were enhanced and that resilience was considered through adjustments. Lessons learned and interventions were documented and used as and when required.

The Chairperson thanked the entities for their presentations.

The meeting was adjourned.