ATC140711: Joint Report of the Portfolio Committees on Communications and on Telecommunications and Postal Services on their deliberations on Budget Vote 9: Government Communication and Information System (GCIS), and its entity, Media Development and Diversity Agency (MDDA), dated 11 July 2014
Sport, Arts and Culture
Joint Report of the Portfolio Committees on Communications and on
Telecommunications and Postal Services on their deliberations on Budget Vote 9:
Government Communication and Information System (GCIS), and its entity, Media
Development and Diversity Agency (MDDA), dated 11 July 2014
The
Portfolio Committees on Communications and on Telecommunications and Postal
Services, having considered the Strategic Plans, Budgets and Annual Performance
Plans (APPs) of GCIS and MDDA, report 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 (PFMA), 1999, the Accounting Officers must provide Parliament or the
relevant legislature with their respective institutions medium-term strategic
plan and where applicable with its annual performance.
The Money Bills Amendment
Procedure and Related Matters Act was promulgated in 2009, and provides Parliament
with powers to reject or recommend the approval of budgets of departments. It
also makes provision for the implementation of recommendations emanating from
the committees oversight.
The aim of the report is to
provide an overview of the 2014/15 Budget and APPs of GCIS and MDDA who
appeared before the Committee as follows:
Department
|
Date of Appearance
|
GCIS
|
1 July 2014
|
MDDA
|
4 July 2014
|
Their strategic plans were
referred to the PCC for consideration and report in the Announcements, Tablings
and Committee Reports (ATC) Parliamentary Paper on Friday, 27 June 2014.
2.
Government Communications and
Information System (GCIS)
The Government Communication and Information
Systems mandate is derived from section 195(g) of the Constitution of South
Africa (1996), which stipulates that the public should be provided with
information that is timely, accurate and accessible, in support of the
constitutional principles of freedom of expression and transparency and
openness of government.
The Government Communication and Information
System was established in terms of section 7 of the Public Service Act (1994)
as a strategic unit located in the Presidency to meet the demands of the
broader democratic human rights environment, and to find ways of alleviating
the isolation of citizens who, through apartheid, poverty and current
circumstance are being deprived of the information that can help them take
control of their lives and engage in dialogue with government.
GCIS
strategic goals over the medium term are to:
·
ensure coherent, responsive and cost effective
communications services for all government programmes;
·
ensure that it is a responsive, cost effective,
compliant and business-focused organization;
·
professionalise the government communication system,
build a reliable knowledge base and enhance related communication products;
·
maintain and strengthen a well functioning
communication system that proactively informs and engages the public;
·
provide efficient and effective communication services
for government; and
·
enhance the image of government and that of the state. Underlining these
strategic goals would be the theme celebration of 20 Years of Freedom
Campaign.
2.3
Policy Priorities for 2014/15
In
accordance with the outcomes based performance management framework adopted by
government, GCIS contributes to the
development
of an efficient, effective and development-orientated public service and an
empowered, fair and inclusive citizenship
(Outcome 12). It responds by
implementing programmes that communicate market and publicize governments
infrastructure-led economy as well as other national policy frameworks (
National Growth Path and National
Development Plan
) in every corner, street and avenue of the country through
its various programmes, activities, as well as online and print publications.
2.3.1
2014 State of the National Addresses (SoNAs)
Every citizen irrespective
of their social class (where-ever located, rural or urban, poor or rich) should
have access to a choice of a diverse range of media and impart information.
This is guaranteed by Chapter two, the Bill of Rights of the countrys
Constitution. Access to communications and information empowers citizens to
facilitate participatory democracy, and assists in defending, advancing and
deepening democracy.
On the 13
th
of
February 2014, in his first State of the Nation Address (SoNA) President Zuma
pronounced that liberation and democracy have created space for an active
civil society and a free media. In the second SoNA, President Jacob Zuma
dedicated his speech on the economy, particularly the successful implementation
of National Infrastructure Plan in which the department participates. The
President pronounced,
we will expand,
modernise and increase the affordability of information and communication
infrastructure and electronic communication services including, broadband and
digital broadcasting
.
2.3.2
The National Development Plan (NDP)
Among governments key
policies the NDP aims to eliminate poverty and reduce inequality by 2030. South
Africa can realise these goals by drawing on the energies of its people,
growing an inclusive economy, building capabilities, enhancing the capacity of
the state, and promoting leadership and partnerships throughout society.
Underpinning the NDP in the communication sector will be the development of the
dynamic and connected information society and a vibrant knowledge economy that
is more inclusive and prosperous.
The more citizens are
informed about government programmes, plans and activities, the more they are
empowered to hold government accountable to improve on service delivery. The
department therefore contributes to citizen participation by facilitating
two-way interaction between government and the public by organising Imbizo
public engagement programmes and publicising governments development-related
initiatives through the media. The department will continue to use community
and stakeholder liaison visits for the effective communication of Cabinet
decisions.
The department has, over the past five years,
working with other government departments, continued to communicate and
facilitate communication campaigns informed by the following priorities: job
creation, education, health, rural development, and the fight against crime and
corruption. The department will also continue to provide strategic
communication support to government departments through transversal
communication campaigns that place special emphasis on national priorities.
The department will further support
government in building a capable state by maintaining good relations at
provincial and local government levels, and establishing and strengthening
provincial and district communication forums. The department also aims to
professionalise the government communication and information system through the
development of training course content and identifying, coordinating and
implementing effective training programmes for government communicators. This
will ensure more coordinated efforts in communicating government plans,
programmes and achievements.
Lastly, the department aims
to take a direct role in communicating the NDP by conducting research to
measure the willingness and participation of citizens in their own development.
2.3.3
The New Growth Path (NGP)
The medium term policy
plan, NGP is the government's key programme to take the country onto a higher
growth trajectory. The NGP is about creating the conditions for faster growth
and employment through government investment, microeconomic reforms that lower
the costs of business (cost of communications for poor households and
business), competitive and equitable wage structures, and the effective
unblocking of constraints to investment in specific sectors.
In an
effort to communicate market and publicize governments infrastructure-led economy
as well as the national policy frameworks of governments NGP, the Industrial
Policy Action Plan (IPAP) and the NDP, GCIS developed a five-year National
Communication Strategy (NCS) in line with the Cabinet and public needs, which
was endorsed by Cabinet. The NCS is developed to drive the communication
priorities of the Medium Term Strategy Framework (MTSF) and is updated annually
to ensure that it remains relevant and highlights communication priorities that
may have arisen in the course of the year. NCS is also cascaded down to all
national and provincial departments to ensure uniformity.
The spending focus over the
medium term will be on implementing the NCS, which was approved by Cabinet in
June 2014. The strategy tasks GCIS with working with other departments to align
their communication campaigns and programmes with the strategic priorities of
government. GCIS is also responsible for taking the lead in communicating
projects and programmes of strategic significance to government, which include
providing advertising and media bulk buying expertise to other government
departments over the medium term. GCIS will continue to conduct information
campaigns, such as the state of the nation address; develop communications
activities aligned with the government communication programme, coordinate the
Imbizo government programme; and produce government publications such as the
South Africa Yearbook, over the same period.
Almost 63.7 per cent of the
departments allocation over the medium term is spent in the Administration and
Intergovernmental Coordination and Stakeholder Management programmes, most of
which is on compensation of employees and goods and services, see Graph 1 and
Graph 2 below.
2.4.1
Compensation of Employees
The anticipated increase in
spending on compensation of employees over the medium term is to provide for
annual salary adjustments as the departments funded establishment is expected
to remain at 514 posts, including 24 contract workers. Over the same period, expenditure
in the Administration programme is expected to decrease due to the completion
and occupation of the new head office building, for which funds were provided
between 2010/11 and 2013/14.
The department had 12
vacant posts at the end of November 2013, mainly as a result of retirements,
resignations and transfers to other government departments. Contrastingly, by
30 September 2012, the Department had 23 vacant posts; this represents a
significant decrease in vacant posts based on this statistic and this should be
commended.
The recruitment process to fill these vacant posts has begun.
The department had 505
funded posts in 2012/13. In addition the department has annual plans to employ
25 interns over the medium term to support skills development. But only 23
interns participated in the internship programme in 2013/14. The ratio of
support staff to line function staff was 1:3 therefore it is assumed that
status quo remains in this regard.
Lastly,
Consultants in this
programme are mainly used for legal advice relating to labour relations,
translations and transcriptions of programme products, qualification
verifications and audit committees.
Spending on goods and
services over the medium term is expected to be primarily on operating leases,
travel and subsistence and operating expenses related to the publication of
monthly Vukuzenzele newspaper and the South African Yearbook. 20.4 million
Vukuzenzele copies are set to be produced in 11 official languages and
distributed monthly over the medium term. In addition, GCIS plans to issue 42
cluster reports on perceptions of government delivery and performance, conduct
8 250 community and stakeholder liaison visits and align 6 552 development
communication projects with the government communication programme over the
medium term. It is also projected that 3 846 media, photographic, video and
graphic design products will be produced over this period.
The transfer to the Media
Development and Diversity Agency (MDDA) accounts for 5.1 per cent of the
departments total expenditure over the medium term. R68.2 million is allocated
to the agency over this period to enable historically disadvantaged communities
and individuals to gain access to the media.
Although
construction process of the
GCIS new building was completed at the end of November 2013, instead of the end
of July 2013, as was anticipated; d
elays were mainly caused by the need to install
additional ICT infrastructure, such as cabling for voice over internet protocol
and fire suppression devices. Although the building project began in 2011/12,
legal and logistical delays resulted in funds of R20 million being rolled over
to 2012/13. Additional allocations of R50 million towards the project were made
in 2012/13, with R18.3 million being shifted in 2012/13 from the Office
Accommodation sub-programme in the Administration programme to the project to
fund the purchase of additional ICT infrastructure.
Total project expenditure
at the end of November 2013 was approximately R101 million, used mainly for
ICT. Project shortfalls were funded through the reprioritisation of funds
across the four departmental programmes.
2.5
Programme Allocation and Expenditure
Trends
2.5.1
Programme 1 Administration (R141.4 million)
The purpose of this
programme is to provide overall support services to the Department. In 2014/15
financial year the programme has been allocated R141.3 million compared to
R132.6 million allocated in the 2013/14 financial year. Overall, Programme 1
accounts for 34.2 per cent, which is the biggest share of all four programmes
of the total allocation for the Department,
see
Graph 1
above
.
The focus
over the medium term will be on deploying robust Information Technology (IT)
infrastructure and systems in the new head office, and addressing the office
accommodation and corporate service needs of the department. The Corporate
Services, Financial Administration and Office Accommodation sub-programmes
therefore constitute the bulk of this programmes allocation over the medium
term. The funds are mainly allocated towards compensation of employees,
operating leases and computer services.
Programme expenditure
increased between 2010/11 and 2013/14, mainly due to a once-off allocation of
R50 million in 2012/13, rollover funds of R20 million from 2011/12 to 2012/13
and R39.8 million between 2012/13 and 2013/14 in respect of the new head
office. This resulted in a significant increase in spending on buildings and
other infrastructure, which comprised of building, ICT and data line costs; as
well as increased spending on assets valued at less than the capitalisation
threshold for the purchase of office furniture.
With the new head office
now complete, it is projected that programme expenditure will decrease at an
average annual rate of 5 per cent over the medium term. The increase in
expenditure on operating leases over the same period is due to the increased
lease cost of the new building.
2.5.2
Programme
2 - Content Processing and Dissemination (R99.9 million)
The purpose of this
programme is to provide strategic leadership in government communication to
ensure coherence, coordination, consistency, quality, impact and responsiveness
of government communication.
During the previous three
financial years (2011/12; 2012/13; 2013/14) and the current financial year this
programme received the third largest allocation (as illustrated in Graph 1
above), which constitutes on average 25 per cent of the total budget. In the
current financial year (2014/15), the programme has been allocated R99.9
million in comparison to R97.0 million allocated in 2013/14 financial year.
The spending focus over the
medium term will be on providing strategic leadership and support in government
communication through media monitoring, research, surveys and analysis in order
to better understand the communication environment. These activities will be
conducted in the Policy and Research sub-programme, while the Products and
Platforms sub-programme will be responsible for enhancing government
communication products to strengthen the voice of government.
The main achievements for this programme
between 2010/11 and 2013/14 included the production of media content and the
provision of support for the 2010 FIFA World Cup event, reports on government
delivery and performance and media coverage, and reviews of the assessment of
the media landscape reports.
The bimonthly Vukuzenzele magazine was also
converted to a monthly newspaper, which resulted in efficiency gains on
operating payments for the printing and distribution costs. These savings
allowed the department to publish the Vukuzenzele newspaper more regularly.
The Vukuzenzele newspaper comprises 54 per cent of the average annual
expenditure of the
Products and Platforms
sub-programme.
Expenditure in the
Policy and Research
sub-programme
over the medium term is set to increase in line with projected inflation
escalation. The main cost drivers of these activities are agency and outsourced
services and operating payments.
Consultants in this programme are mainly used
for translating the Vukuzenzele newspaper into the 11 official languages and
Braille, and assisting in the production of the South African Yearbook and
other departmental publications and media products. Therefore spending on
consultants is expected to increase over the medium term to provide additional
capacity for translation services
Lastly, efficiency measures
that will be implemented to ensure minimal negative impact on service delivery
include limiting hotel accommodation, air travel and car-hire expenses and
using the head office instead of private venues for meetings
2.5.3
Programme
3. Intergovernmental Coordination and Stakeholder Management (R121. 7
million)
The purpose of the
programme is to implement development communication through mediated and
unmediated communication and sound stakeholder relations and partnerships.
Furthermore, this programme also transfers funds to the Media Development and
Diversity Agency (MDDA).
The Programme which is the
second biggest receives 30 per cent of the total Departmental budget and is
allocated R121.7 million compared to the previous financial year allocation of
R120.0 million. In nominal rand change, Programme 3s allocation increased by R1.7
million or 1.4 per cent, however, the real rand change shows a decrease of R
5.4 million or a decline of 4.5 per cent in the programme allocation for the
current financial year.
Out of the total amount of
R121.7 million allocated to Programme 3, sub-programme Provincial and Local
Liaison
is allocated R73.5 million
compared to the R69.9 million of the
previous financial year. The allocation received in this current financial year
equates to 60 per cent of the programmes allocation. A transfer to Media
Development and Diversity Agency in the current financial year amounts to R21.8
million compared to the previous financial years amount of R20.8 million. The
MDDA allocation of R21.8 million equates to 17.9 per cent of Programme 3s
budget and 5.3 per cent of the total GCIS budget.
The bulk of the allocation falls under current payments
(goods and services and compensation of employees), a small portion is
allocated to consultants while the remaining balance is allocated to public
corporations and private enterprises as transfers and subsidies
.
The spending focus over the
medium term will be on ensuring that provincial and local government
departments and entities are aligned with the government communication strategy
in order to maintain and strengthen a well-functioning communication system
that proactively informs and engages the public. This is primarily the task of
the Provincial and Liaison sub-programme, which uses 60 per cent of the
Programmes allocation over the medium term. With these funds, the programme
expects to conduct 2 750 community and stakeholder liaison visits and 1 860
community media and outreach platforms each year over the medium term, and make
more effective use of community media platforms linked especially to the public
participation programmes of the President, Deputy President and Members of the
Executive. The aim is to increase the reach of citizens from all areas and
living standards measure groups.
Expenditure increased between 2010/11 and
2013/14 mainly due to a once-off allocation of R10 million for advertising and
communication in 2012/13 related to the preparations for the 2013 Africa Cup of
Nations as well as advertising activities related to the countrys hosting of
the African Nations Championships, which took place in the first quarter of
2014.
Lastly, Expenditure in the
Media
Development and Diversity Agency
sub-programme is expected to increase over
the medium term to cover the agencys operations going forward
2.5.4
Programme 4. Communication Service Agency
(R50.1 million)
The purpose of this
programme is to provide media bulk buying services and media production
services to national government.
Of R50.1 million allocated
to this programme, sub-programme
Marketing,
Advertising and Media Buying
in the current financial year was allocated R28.6
million compared to last financial years R27.3 million.
The current allocation of R28.6 million
represents 57.1 per cent.
Of the R50.1 million
allocated to Programme 4, sub-programme
Media
Production
received R21.5
million compared to R19.8 million which was allocated in the previous financial
year. The allocation received by the sub-programme in this financial year
equates to a depreciating percentage of 41.9 per cent.
The spending focus over the
medium term will be on consolidating the media production, media bulk buying
and advertising agency functions for government departments. This includes:
buying media for campaigns; producing radio advertisements and dramas, video
programmes and live broadcasts on community radio stations; and providing
photographic coverage and cost effective and efficient electronic media
products and services. To support these objectives, funds are mainly allocated
to compensation of employees, advertising, travel and subsistence and operating
payments.
The expected increase in
spending on operating payments in 2016/17 is mainly due to an increase in costs
related to the distribution of Vukuzenzele newspaper and the South African
Yearbook. Expenditure in this programme is expected to increase marginally over
the medium term mainly to cater for allocations for improved conditions of
service and other inflation related adjustments.
The number of personnel in this programme is
expected to increase from 50 in 2012/13 to 55 by 2016/17, mainly due to the
filling of vacant posts. There were 5 vacant posts at the end of November 2013
as a result of resignations and transfers to other government departments.
These posts are in the process of being filled. The allocation will increase by
R1.2 million over the medium term.
In sum,
the Department aims to
implement efficiency measures that will ensure that there is minimal
negative impact on service delivery including limiting hotel accommodation, air
travel and car-hire expenses and using the head office instead of private
venues for meetings from all its Programmes.
3.
General
Findings / Observations
The Committee noted with
concern that: (i) GCIS had an acting Chief Executive Officer (CEO) for almost
two years; (ii) the position of Deputy Chief Executive Communication Service
Agency remains unfunded for almost three financial years, consecutively; and
(iii) the GCIS had non-quantifiable targets
.
The Committee recommended
that the Department must make available to the Committee the National
Communication Strategy (NCS).
4.
Entities
Reporting to the Department
Media Development and Diversity Agency R57 695 000
MDDA budget consists of the
following: transfers from GCIS R21 815 000, Broadcast Media R24 502 000, Print
Media R4 000 000, and other income R7 378 000
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.
The mandate of MDDA is to:
(i) create an enabling environment for media development and diversity which
reflects the needs and aspirations of all South Africans; (ii) redress the
exclusion and marginalisation of disadvantaged communities and people 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. The overall objective of MDDA is 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 MDDAs strategic focus
over the medium term will be:
·
maintaining and enhancing ownership of small commercial and community
media, controlling and encouraging access to information and content production
by communities;
·
enhancing ownership and control by independent media entrepreneurs;
·
developing and strengthening a vibrant, innovative, people-centred and
diversified media;
·
cultivating an environment and capabilities that deliver the agencys
value products and services;
·
enhancing the agencys brand as a leader in media development and
diversity,
·
enhancing the agencys governance and accountability standards; and
·
strengthening, growing and protecting the funding base of the agency in
order to deliver on its mandate.
The MDDA has the following
programmes:
4.1.1
Sub-programme A1: Community Media
R26.9 million
The
purpose of this programme is to provide technical, non-financial and financial
support to diverse media platforms owned and controlled by communities. Its
strategic objective is the ownership, control and access to information and
content production by communities.
4.1.2
Sub-programme A2: Small Commercial Media
R7.5 million
The purpose of this
programme is to provide technical, non-financial and financial support to
diverse media platforms owned and controlled by independent publishers. Its
strategic objective is the enhancement of ownership and control by independent
media entrepreneurs.
4.1.3
Sub-programme A3: Research, Training and
Development R5.1 million
The
purpose of this programme is to create and enhance a body of knowledge
regarding the media landscape and capacity for a diverse media industry. Its
strategic objective is a vibrant, innovative and people-centred media.
4.1.4
Sub-programme A4: Monitoring and Evaluation
R1.3 million
The
purpose of this programme is to assess grant agreement compliance and impact of
MDDA funded projects. Its strategic objective is to strengthen and promote a
vibrant, innovative and people-centred and diversified media.
4.2
Programme B: Legal and Contract Monitoring R61 000
The
purpose of this programme is to provide legal support and advice, and contract
management service to the MDDA. Its strategic objective is creating a legally
sound contract management and litigation free agency.
4.3
Programme C: Human Resources and
Corporate Services R2.5 million
The purpose of this
programme is to develop MDDA human capital so as to deliver products and
services that meets the expectations of stakeholders. Its strategic objective
is the creation of an environment and capabilities that deliver MDDA value
products and services.
4.4
Programme D: Risk Management and Internal
Audit R1.7 million
The purpose of the programme
is to limit the negative impact of organizational and environmental risks by
enhancing governance and accountability standards of the MDDA.
4.5.1
Sub-programme E1: Finance and Supply Chain
Management R7.1 million
The purpose of this
programme is to provide MDDA with overall financial and supply chain
management, and guide management in complying with legislative requirements,
budget planning, financial management and administration. The strategic
objective is to strengthen, grow and protect the MDDA funding base.
4.5.2
Sub-programme E2: Information Technology
The
purpose of the programme is to strengthen the MDDAs Information Management
System. Its strategic objective is to standardize the basic IT infrastructure
and to ensure that it complies with industry standards.
4.6
Programme F: Communications CEOs Office,
Branding and Stakeholder Management R5.3 million
The
purpose of the programme is to enhance the MDDA brand as a leader in media
development and diversity. Its strategic objective is to create a well-known,
valued and reputable brand.
4.7
Expenditure Trends of the MDDA
The MDDA is funded mainly
by transfers from GCIS and grants from broadcast and print media. Areas of
funding are divided into four broad categories; Community Media - 60 per cent;
Small Commercial Media - 25 per cent; Research Projects - 5 per cent and other
is allocated 10 per cent. In addition, the agency also earns non-tax revenue
from interest generated on short term investments. Between 2010/11 and 2012/13,
transfers received increased due to a service level agreement with both print
and broadcast media stakeholders. The total annual average revenue generated is
anticipated to remain stable over the medium term.
The agencys spending focus
over the medium term will shift from taking on new projects to ensuring the
sustainability of existing projects by maintaining their level of funding.
Community media and small commercial media grants are the largest item of
expenditure over the medium term as the agency continues to carry out its core
function of developing the sector. Between 2010/11 and 2013/14, spending on
transfers and subsidies for approved grand applicants averaged 3.9 per cent of
expenditure, with an average annual growth of 18.5 per cent. The increase was a
result of retained surplus and increased contributions from the print and
broadcast media. Spending increased significantly over this period in order to
meet the agencys grant making objective of promoting and strengthening the
small commercial print and community media sectors.
Accordingly, the number of
funded community media projects increased from 20 in 2012/13 to 24 in 2013/14.
Spending on transfers and subsidies to small commercial and community media
grant recipients is expected to decrease by an average of 2.6 per cent over the
medium term, and covers an average of 73 per cent of the total expenditure. As
the medium term focus is on existing projects, the number of small commercial
media sector and research and training projects is expected to decrease
slightly in 2014/15 and 2015/16. This is the consequence of smaller
contributions from the print sector. The number of projects supported in any
given year depends on the quality and quantity of the applications received,
and has averaged 431 from 2010/11 to 2013/14.
Between
2010/11 and 2013/14, spending on compensation of employees grew at an average
annual rate of 15.5 per cent as a result of the expansion of the organizational
structure. The number of personnel is expected to increase from 21 in 2012/13
to 26 in 2016/17, mainly due to the expected filling of 5 critical vacant posts
by the end of the 2013/14. In addition, expenditure on compensation of
employees over the medium term is expected to grow at an average annual rate of
7.4 per cent, driven mainly by improvements in conditions of service.
The agency
aims to retain its skilled workforce by offering and maintaining competitive
salaries over the medium term. Consultants provide internal audit and risk
management services, as the agency does not have the personnel to perform these
tasks. Spending on consultants over the medium term therefore is expected to be
R682 000.
MDDA identified the
following internal challenges:
-
The
level of organizational skills and capacity both in terms of numbers,
knowledge and skills given the broad spectrum of projects across the
country;
-
The
more the beneficiary numbers increase, the less capacity of MDDA to
manage, monitor and evaluate, and report adequately;
-
The
inadequacy of the MDDA financial resources which limit the Agencys
ability to recruit and retain appropriate and the best staff the market
can offer;
-
Five
Board members term of office expire in December 2014;
-
Positioning
the Agency in the context of new technologies and innovation; and
·
Using cutting edge technologies to enhance
efficiencies.
MDDA identified the
following external challenges:
-
Limited
funding, especially in the area of print media where funders have signed the
same R1.2 million support for the first three years and R1 million for the
last two years. Print and Digital Media of South Africa (PDMSA) have
indicated their non-commitment to renewing their contributions until a
policy review on media development and diversity is completed. The
decision makes MDDA budget for 2014/19 R4 million less;
-
The
market environment for print media development is constrained, because of
difficulty regarding the value chain (printing and distribution), costs of
running the business and funding support;
·
Loss of skills from small commercial and community
media to the more lucrative commercial / private media and public broadcasting
sector;
·
National Treasury needs to facilitate the transfer
of the allocations of support for capacity building of community radio
programme production in Vote 27 (Communications) to Vote 9 (GCIS) for MDDA;
-
Limited
exposure of small commercial and community media to marketing and
advertising revenues;
-
Sustainability
challenges and mobility skills; and
·
Limited number of mentors and people business
administration skills.
5.
Observations
and Recommendations
The
Committee noted:
(i)
that National Treasury needs to
facilitate the transfer of the budget allocation for the purpose of capacity
building of community radio programme production from Budget Vote 27 to Budget
Vote 9;
(ii)
that not all national departments
comply with the Committees 2012/13 recommendations to use community media when
advertising;
(iii)
the slow pace towards legislative
and policy review which needed to be conducted in order to address sectoral
challenges which relate to sustainability and tariffs;
(iv)
the findings of report by the
Print and Digital Media of South Africa (PDMSA) on the lack of Transformation
of Print and Digital media;
(v)
the 2013/14 Third Quarter
Expenditure of GCIS was 74 per cent which is an improvement from the same
period in the previous financial year which at 57 per cent;
(vi)
that the 2014/15 Strategic Plan of
GCIS did not contain the CommTask Reports recommendation of introducing a
qualification for government communicators;
(vii)
that GCIS 2014/15 Strategic Plan
does not cater for the two major issues in the sector; (a) transformation of
the Advertising Industry and (b) the transformation of the print
media(newspapers, print and distribution value-chain);
(viii)
the work-in-progress by the MDDA
to ensure accountability of boards in the community media sector;
(ix)
the growth of community media
sector and the disjuncture between potential community projects requiring
governments assistance and the actual government transfers to the MDDA; and
(x)
that GCIS and MDDA Accounting
Officer positions were all vacant and occupied by personnel in acting capacities
which brings about leadership instability in the institutions.
The
Committee recommends that the Minister:
(i)
must expedite legislation and
policy review given the challenges facing community media particularly in terms
of Transformation;
(ii)
conducts an audit of compliance of
national departments about the Committee recommendations that national
government departments and state owned entities should include advertising
through community media;
(iii)
provides a breakdown of funding
for existing and new community media projects of MDDA;
(iv)
ensures that GCIS and MDDA
expedite Transformation of the Print Media and take note of the report of
PMDSA;
(v)
ensures
that GCIS and MDDA work with Advertising
Standards of South Africa (ASA), and the Department of Trade and Industry (DTI)
to expedite Transformation of the Advertising Industry;
(vi)
ensures that GCIS and MDDA work
with provincial and municipal governments to directly place their
advertisements with community media;
(vii)
ensures that GCIS and MDDA work
with stakeholders like the South African Audience Research Foundation (SAARF)
and the Audit Bureau of Circulation (ABC) to ensure accuracy of audience and
readership figures in order to attract private and public advertisement;
(viii)
ensures that MDDA works with
community media as well the South African Music Rights Organisation (SAMRO) to
find a solution which will result in the
payment of royalties to artists by community broadcasters even at
discounted rates should such a mechanism exist;
(ix)
ensures that GCIS and MDDA fill
all funded vacancies, especially those at Senior Management Service (SMS) level;
(x)
encourage an MDDA funding model
that includes the promotion and prioritization of community media that uses
indigenous languages; and
(xi)
ensures that measures are put in
place to capacitate community media to diversify its advertising.
The
Committees are satisfied with the GCIS and MDDA Strategic Plans 2014 2019 and
their APPs for 20142015, and accordingly support its implementation.
The Democratic
Alliance and the Economic Freedom Fighters reserved their position on the
report.
Report to be considered.
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