ATC100413: Report Budget Vote 8 (GCIS & Its Entities)
REPORT OF THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON ITS DELIBERATIONS ON BUDGET VOTE 8 (GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM AND ITS ENTITIES), DATED 13 APRIL 2010
The Minister in The Presidency: Performance Monitoring and Evaluation tabled the Medium Term Strategic Plan of the Government Communication and Information System (GCIS) and the Strategic Plans for the GCIS entities for 2010-2013 on 3 March 2010.
The Committee held briefings with GCIS and its entities on 9 March 2010 and 11 March 2010.
The Committee engaged with GCIS and its Entities during their presentations by questioning them regarding their policies, programmes and projects and how the allocated budget will be used to achieve these.
2. Government Communications and Information Service (GCIS)
The aim of GCIS is to provide a comprehensive communication service on behalf of government to facilitate the involvement of the majority of South Africans in governance, reconstruction and development, nation building and reconciliation.
The key objective of GCIS is to continuously communicate and inform the public on the policies and programmes of government to improve their lives.
The GCIS presentation on 9 March 2010 was done by:
Minister O.C. Chabane - Minister in the Presidency
Mr Themba Maseko - CEO GCIS
Ms Nebo Legoabe - DCEO: Provincial and Local Liaison
Ms Baby Tyawa - DCEO: Strategy and Content Management
Ms Phumla Williams - DCEO: Centralised Services
Total 2010/2011 Budget allocated to GCIS is R546 184 000.00.
The GCIS has the following programmes and medium term outputs:
(i) Programme 1: Administration - R135 697 000.00
Management and provision of support services to the department.
(ii) Programme 2: Policy and Research - R19 317 000.00
Conduct communication research to assess how government informs the public and people’s communication needs and monitors media coverage of government’s programmes from a communication perspective.
(iii) Programme 3: Government and Media Liaison - R30 539 000.00
Coordinate effective, integrated and comprehensive communication and media liaison services across government.
(iv) Programme 4: Provincial Coordination and Programme Support - R59 481 000.00
Strengthen the system of government communications and implement development communication through sound stakeholder relations and partnerships to ensure that the public is informed about government policies and programmes to improve their lives.
(v) Programme 5: Communication Service Agency - R73 322 000.00
Provide core communication services to GCIS and other government departments, both in-house and through outsourcing.
(vi) Programme 6: International Marketing and Media Development - R187 378 000.00
Market South Africa internationally and promote local media development and diversity.
(vii) Programme 7: Government Publication - R34 334 000.00
Create a communication vehicle that provides the public with information on economic and other opportunities and how these can be accessed.
(viii) Programme 8: Communication Resource Centre - R6 116 000.00
Monitor and analyse international media coverage on the country as part of the Government Communication and Information System's leadership in the strategic communication of government.
(ix) Special Focus: 2010 FIFA World Cup
As indicated in the tabled business plan, the GCIS receipts are derived mainly from the sale of publications, photos and videos, interest on outstanding debt and the sale of advertising space in the Vuk’uzenzele magazine. It is estimated that departmental revenue will be R3 million annually over the Medium Term Expenditure Framework period.
A point of concern raised by GCIS is the non-allocation of the budget for the MDDA for 2012/13 in the Estimates of National Expenditure 2010 budget published by the Minister of Finance. The Minister in the Presidency instructed GCIS to clarify the matter with national treasury as there is no decision taken anywhere that indicated MDDA should not exist in that year.
3. International Marketing Council (IMC)
IMC has the mandate to build South Africa’s Nation Brand reputation in order to improve SA’s global competitiveness.
The IMC presentation on 11 March 2010 was done by:
Ms Anitha Soni – Chairperson of the Board
Ms Chichi Maponya – Board Member
Mr Happy Ntshingila – Board Member
Dr Judy Dlamini – Board Member
Mr Lefty Mogorosi – Board Member
Ms Neela Hoosain – Board Member
Mr Thabo Mhlongo – Board Member
Ms Victoria Moloi – Board Member
Mr Paul Mackenzi – Chief Operations Officer
Mr Moeletsi Mabuku – Chief Financial Officer
Ms Margaret Dingalo – Stakeholder relations
Ms Sophie Masipa – Marketing Manager: Brand Building
Ms Naadia Davis – Office of the CEO
Total 2010/2011 Budget allocated to the IMC is R170 113 000.00.
The IMC has the following 6 strategies with associated projects:
i. Brand strategy Development and Management – R59 455 149.00
a. Development of new SA Brand Positioning
b. Align positioning and visual language of key sub-brands to national brand key
c. Integrated creative strategy to activate new brand positioning and launch of new Brand SA slogan
d. Implement co-ordinated and integrated channel strategy that addresses which channels we use to go to market
e. Domestic Mobilisation – development of content for mobilisation campaigns
f. E-Marketing strategy
ii. Reputation Management – R24 178 149.00
a. Agenda Setting – Influence Media Agenda
b. Issue Management
c. Refinement and implementation of Reputation Management Strategy and roll out plan
d. Tactical PR activations
e. Strategic media intelligence
iii. Brand Intelligence and Performance Management – R9 984 110.00
a. Development of the definitive knowledge management system regarding the Brand
b. Measurement of the achievement of the Brand SA Performance Dashboard
c. Global Segmentation Model
iv. Stakeholder and Partner Alignment and Integration – R37 323 071.00
a. Brand Alignment project roll out
b. Establishment of stakeholder forums
c. Relationship management and monitoring
d. Leverage Stakeholder Events
e. Thought leadership programme
v. Organisational Development – R3 400 000.00
a. Alignment of organisation to new mandate and business model
b. Ongoing enhancement of processes and systems – HR, IT, Ops, Financial
c. Board Development
d. CSI Programme
vi. Prudent Financial Management and Control – R35 772 521.00
a. Strategic Plan and Business Plan
b. IMC Funding Model
c. Risk Management and Rescue plan
d. Governance and Compliance
e. Ensure proper financial management internal control
f. Cost saving and environmental measures
As indicated in the tabled business plan, the IMC will receive a grant from GCIS ranging from R170m to R148m for the period 2010-2013. It is to be noted that the annual budget reduces by 21% from 2010/2011 to 2011/2012, due to additional allocations received in 2010/2011 for the FIFA World Cup. From 2011/2012 to 2012/2013 the annual budget increase is 6%, which is again in line with normal inflationary increases.
4. Media Development and Diversity Agency (MDDA)
The MDDA (the Agency) is a statutory development agency for promoting and ensuring media development and diversity, set up as a partnership between the South African Government and major print and broadcasting companies to assist in (amongst others) developing community and small commercial media in South Africa. It was established in 2003, in terms of the MDDA Act, No 14 of 2002 and started providing grant funding to projects on the 29th January 2004.
The MDDA presentation on 11 March 2010 was done by:
Ms Gugu Msibi - Chairperson of the Board
Mr Lumko Mtimde - CEO
Ms Ingrid Louw – Board Member
Mr Siviwe Minyi – Board Member
Dr Tanja Bosh – Board Member
Ms Nomonde Gongxeka – Board Member
Mr Guy Berger – Board Member
Mr Mshiyeni Gunqisa – CFO
Ms Lihle Mndebela – HR & Corporate Affairs Manager
Mr Harry Letsebe – Projects Director
Ms Phumla Williams – Representing Baby Tyawa – Board Member
Ms Hariet Mhlanga – Executive Secretary
Total 2010/2011 Budget allocated to the MDDA is R17 265 000.00. Total 2010/2011 income of the MDDA R39 251 907.00.
The MDDA’s 9 key result areas are:
i. Advocacy for media development and diversity – R550 000.00
To contribute towards improving the operating environment of the community and small commercial media sectors.
ii. Partnerships and stakeholder management – R840 000.00
To strengthen relations with MDDA contractual and non-contractual stakeholders.
iii. Grant and seed funding support for community and small commercial media – R20 675 431.00
To promote and strengthen the small commercial print and community media sector.
iv. Capacity building interventions for beneficiary organisations and communities including mentorship and monitoring and evaluation (Strengthening and consolidating beneficiary projects towards sustainability) – R588 017.00
To enhance the sustainability of community and small commercial media. To strengthen and consolidate beneficiary projects.
v. Research and knowledge management – R1 000 000.00
To enhance innovation and learning in the sector.
vi. Media Literacy and culture of reading – R200 000.00
To promote media literacy and the culture of reading.
vii. Communications and public awareness with regard to the sector and the MDDA in general – R648 474.00
To enhance and position the MDDA as a leader in media development and diversity.
viii. Quality programming and production in community broadcasting – R12 000 000.00
To enhance and improve programming, production and build capacity in community broadcasting sector.
ix. Fundraising and resource mobilisation – R89 564.00
To strengthen, grow and protect the MDDA capital base; accordingly increase the funding and resource base of the MDDA and its beneficiaries.
The major and critical strategic and operational risk being the non-allocation of the budget for the Agency for 2012/13 in the Estimates of National Expenditure 2010 budget published by the Minister of Finance.
As indicated in the tabled business plan, the MDDA is in receipt of applications worth more than R150m but has a budget of just between R30m and R50m.
5. Proposals and concerns raised by the Committee
The Committee deliberated and resolved as follows:
- The Committee accepted GCIS’s, IMC’s and MDDA’s presentations in principle, however GCIS and its Entities were asked to submit a document or presentation that sets out each programme with a timeframe in which the work will be done, with an allocated budget amount that matches the objective. These expanded documents were supplied and considered favourably by the committee;
- The committee expressed concern regarding the exclusion of the MDDA from the budget allocation for 2012/2013 and requested through GCIS feedback in writing from National Treasury with regard to the reasons or qualifications for the budget allocation exclusion for the MDDA for the 2012/2013 year and whether it will be restored.
The Committee recommends as follows:
(a) that the Budget Allocation of the Government Communications and Information System and the Entities accountable to it be approved for the financial year 2010/2011; and
(b) that the MDDA exclusion be rectified and that a budget allocation be made to include the MDDA for the 2012/2013 financial years.
Report to be considered.
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