Report: Deliberations on the Budget Vote 9: Government Communication & Information System (GCIS), & Media Development & Diversity Agency (MDDA), dated 26 April 2012

Communications and Digital Technologies

Report of the Portfolio Committee on Communications on its deliberations on the Budget Vote 9: Government Communication and Information System (GCIS), and Media Development and Diversity Agency (MDDA), dated 26 April 2012

Report of the Portfolio Committee on Communications on its deliberations on the Budget Vote 9: Government Communication and Information System (GCIS), and Media Development and Diversity Agency (MDDA), dated 26 April 2012

The Portfolio Committee on Communications, having considered the Strategic Plans and Budgets of GCIS and the MDDA, reports as follows:

1. Introduction

Section 55(2) of The Constitution of the Republic of South Africa, Act 108 of 1996, states that the National Assembly must provide for mechanisms (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; and (b) to maintain oversight of (i) the exercise of national executive authority including the implementation of legislation; and (ii) any organ of state. In terms of the Public Finance Management Act, 1999, the Accounting Officers must provide Parliament or the relevant legislature with their respective institution’s medium-term strategic plan and where applicable with its annual performance.

The Money Bills Amendment Procedure and Related Matters Act was promulgated in 2009, by which it vests powers to Parliament to reject or recommend budgets of departments, it also makes provision for the implementation of recommendations emanating from the committees oversight.

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 entity (MDDA) for 2012-2017 on 7 March 2012. The Committee held briefings with GCIS and its entity on 9 March 2012.

In performing its constitutional mandate, the Committee scrutinized the alignment of strategic plans (2012-2017) of GCIS and its entity with the following key government objectives, (i) 2012 State of the Nation Address; (ii) budget statement; (iii) government’s five priorities (health, education, employment, rural development, fighting crime and corruption); and (iv) National Development Path.

In doing so, the Committee would ultimately ensure the writing of the new story of South Africa , “the story of how, working together, we drove back unemployment and reduced economic inequality and poverty,” as reiterated by our President Jacob Zuma in his State of the Nation Address.

The above fundamental objective served as government’s underlying programme of action. The Committee wanted to establish whether the funds allocated would help to transform programmes into actual service delivery action plans throughout the country, particularly in rural and underserviced areas, and beyond.

Oversight visits conducted by the Committee in 2011-2012 to the Eastern Cape, Free State, KwaZulu-Natal, Northern Cape, Western Cape, Limpopo and Mpumalanga remained an important tool to measure service delivery in practice toward requisite budget allocations. The transformation of print media Indaba and the ongoing discussions with the advertising industry also assisted the Committee to respond to issues emanating from the above-cited oversight visits.

2. Government Communication and Information System ( GCIS) – R429 095 000.00

The GCIS Chief Executive Officer, Mr Jimmy Manyi , presented an overview of the Strategic Plan of the GCIS. The mandate of the GCIS is to provide strategic leadership in government communication and coordinate a government-wide communication system that ensures that the public is continuously informed of government programmes and policies in a manner that would improve their lives. This would essentially ensure alignment with the national government agenda to support the five priorities of government, which are the key focus areas for the GCIS programmes.

In addition to the Deputy Minister in the Presidency, Honourable Obed Bapela, the following officials from the GCIS appeared before the Committee on 9 March 2012:

Mr Jimmy Manyi - Chief Executive Officer (CEO): GCIS

Mr Vusi Mona – Deputy CEO: GCIS

Ms Phumla Williams – Deputy CEO: GCIS

Chief Directors of various programmes.

The GCIS has the following programmes with their allocated budget and medium term outputs:

2.1 Programme 1. Administration – R170 839 000.00

The purpose of the programme is to provide overall management and support for the GCIS, through sub-programmes, which include: strategic planning and programme management; human resources; information management and technology; the Chief Financial Officer who provides the financial; and supply chain management services and internal auditing to improve risk management, control and governance processes.

2.2 Programme 2. Communication and Content Management – 109 087 000.00

The purpose of the programme is to provide strategic leadership in government communication to ensure coherence, coordination, consistency, quality, impact and responsiveness of government communication. It focuses on government communication training and development, policy and research, content and writing, as well as marketing and distribution.

2.3 Programme 3. Government and stakeholder Engagement – 116 524 000.00

The purpose of the programme is the implementation of development communication through mediated and unmediated communication, as well as sound stakeholder relations and partnerships. The programme functions include provincial and local liaison, oversight responsibility to the Media Development and Diversity Agency (MDDA), cluster supervision which coordinates Cabinet cluster communications including advice and support to departments, as well as media engagement which is the key driver of interaction between government and the media. The media engagement sub programme further seeks to ensure effective liaison between ministers and media, good relationships with foreign and independent media, as well as good relations with South African missions and the Brand South Africa (BSA) country managers, with the view of dissemination of government information.

2.4 Programme 4. Communication Service Agency – 32 645 000.00

The purpose of the programme is to provide media bulk-buying services and media production for the entire national government. Its functions are composed of two sub programmes being media production and media bulk buying. The media production produces graphic designs, videos, photographs and radio programmes in support of government communication programmes, whereas the media bulk buying sub programme provides media bulk buying expertise to government communication programmes, GCIS, together with other government departments.

3. Challenges

Challenges that were identified remain the public perception of government performance pertaining to the five priorities. A further critical constraint is office space, which the GCIS seek to address as it will be relocating to new premises by May 2012. The insufficient media bulk buying is endeavoured to be significantly improved through an in-house media buying for government, whereby the infrastructure development programme include public-private partnership where government will extensively procure from the private sector and in the process, create employment and contribute to the better life of all South African.

4. Financial management

There is an overall increase of 17.8% of the total budget for all four government programmes for 2012/13. This is mainly as a result of the relocation of official headquarters from Pretoria to the new business hub in Hatfield, as well as the salary adjustments. The high salary is an indication of the caliber of staff in the GCIS.

Included in the communication and content management budget is: (i) the cost of tracker system to monitor media coverage and evaluate impact of government’s message, and (ii) content generation mainly meant for Vuk’uzenzele newspaper and Public Sector Manager Magazine (PSM).

The method of distribution of the Vuk’uzenzele is currently being reviewed.

5. Media Development and Diversity Agency (MDDA) - R 52 208 000.00

Transfers received: R44 834 000.00 & Non-tax revenue: R7 374 000.00

The MDDA was set up in terms of the MDDA Act, 2002 (Act 14 of 2002) to enable historically disadvantaged communities and individuals to gain access to the media. Its mandate is to: (i) create an enabling environment for media development and diversity which reflects the needs and aspirations of all South Africans, (ii) redress exclusion and marginalisation of disadvantaged communities and persons from access to the media and the media industry, and (iii) promote media development and diversity by providing support primarily to community and small commercial media projects.

Its objectives are to ensure that all citizens can access information in a language of their choice and to transform media access, ownership and control patterns in South Africa .

The following officials from the MDDA appeared before the committee:

Ms Gugu Msibi – Chairperson of MDDA

Mr Lumko Mtimde – Chief Executive Officer

Mr Jimmy Manyi – Board Member

Nadia Bulbulia – Board Member

Thato Mahapa – Board Member

Phenyo Nonqane – Board Member

Renee Alicia Smith – Board Member

Ingrid Louw – Board Member

Phelisa Nkomo – Board Member

Mshiyeni Gungqisa – Board Member

Nkopane Maphiri – Programs Director

Hariet Mhlanga – Executive Secretary.

The MDDA has the following key result areas:

5.1 KRA 1: Grant funding – R30 654 000.00

Emphasis is placed on projects funded and licensing of ICASA, together with strengthening content development. This is toward promoting and strengthening the small commercial print and community media to enhance its sustainability, as well as adopt capacity building interventions for beneficiary organizations and communities together with mentorship.

5.2 KRA 2: Fundraising and resource mobilization – R4 495 000.00

To strengthen, grow and protect the MDDA capital base, therefore increase the funding and resource base of the MDDA and its beneficiaries, also to strengthen relations with MDDA contractual and non-contractual stakeholders. Strategic focus is placed on increasing the level of transfers and funding revenue streams, and also access more funding from SETA for training and engagement in this regard has taken place with Nemisa and Institutions of Higher Education.

5.3 KRA 3: Research, knowledge management, monitoring and evaluation –

R3 593 000.00

This is toward enhancing innovation and learning in the sector. Research seminars, dissemination of research reports, publishing of two journals annually, conduct learning forums with project beneficiaries, and very importantly track legislative and policy issues pertaining to the media.

5.4 KRA 4: Advocacy for media development and diversity – R2 720 000.00

To contribute towards improving the operating environment of the community and small commercial media sectors, enhance and position the MDDA as a leader in media development and diversity, and to promote media literacy and the culture of reading. In this instance the MDDA particularly seeks to address the review of ICASA regulations governing the community broadcasting sector, possible amendments to the Media Development and Diversity Agency Act 14 of 2002, develop partnerships with the Marketing and Advertising and Communications (MAC) Charter Council process and Advertising Media Association of South Africa (AMASA) to lobby advertising and marketing industry, as well as engage AMASA on advertising training programmes.

During the Committee oversight visits to various provinces a number of challenges amongst others definition of community media were identified and recommendations were made by the Committee, wherefore the MDDA endeavours to address in this area.

5.5 KRA 5: Other Objectives – R10 746 000.00

To enhance and improve programming, production and build capacity in community broadcasting sector.

6. Challenges

Sustainability of funded projects remain an ongoing challenge mainly due to insufficient financial support by mainstream print media to the community print, as well as insufficient financial support from all spheres of government to sustain the community media through placing of advertisements that advocates government programmes and activities. The poaching of staff by well established media houses remains a risk to the sustainability of community media.

This was also identified during the Committee’s oversight visits in 2011-12 to the Eastern Cape , KwaZulu-Natal , Free State , Northern Cape , Western Cape , Limpopo and Mpumalanga provinces, in its quest to measure service delivery on ground level.

7. Recommendations

7.1 The Committee is satisfied with the GCIS Strategic Plan 2012-2017 and accordingly support it.

7.2 The Committee supports the MDDA Strategic Plan and Budget MTEF 2012-2015, however recommends that:

· Government departments, municipalities and state entities should contribute a certain percentage of their advertising budget allocation towards advertising through community media to support its long-term sustainability; and

· Legislative and policy review should be conducted, particularly to address challenges in the sector, related to sustainability and licence conditions.

Report to be considered.

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