ATC151020: Budgetary Review and Recommendation Report of the Portfolio Committee on Police on the Independent Police Investigative Directorate (IPID), dated 20 October 2015

Police

THE BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE (IPID), DATED 20 OCTOBER 2015

 

The Portfolio Committee on Police, having considered the financial and service delivery performance of the Independent Police Investigative Directorate (IPID) for the 2014/15 financial year, reports as follows:

 

1. INTRODUCTION

 

The Money Bills Procedures and Related Matters Amendment Act, (Act 9 of 2009), sets out the process that allows Parliament to make recommendations to the Minister of Finance to amend the budget of a national department. As part of this process, Portfolio Committees must compile Budgetary Review and Recommendation Reports (BRRR) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them. The BRRR are also source documents for the Standing Committee on Finance when it makes recommendations to the House on the Medium-Term Budget Policy Statement (MTBPS). The annual review and analysis of performance (entailing both financial and non-financial performance indicators) also forms part of this process.

 

The Committee is guided by its interest to promote effectiveness, efficiency and professional policing in South Africa. It has a desire to see a reduction in crime. The mission of the Committee therefore is to fulfil its constitutional function to:

• Pass legislation;
• Scrutinise and oversee executive action and the organs of state including the Department of the Police, the Civilian Secretariat for Police, the Independent Police Investigative Directorate (the Directorate) and the Private Security Industry Regulatory Authority;
• Facilitate public participation and involvement in the legislative and other processes; and
• Engage, participate and oversee international treaties and protocols.

 

The Committee has overseen the performance of the Directorate though regular oversight meetings during 2014/15 and 2015/16 and has also received reports on its quarterly expenditure for 2014/15 and for the first quarter of the 2015/16 financial year. The Committee visited the Nelspruit (Mpumalanga) office of the Directorate on 06 February 2015 and the Bloemfontein office (Free State) on 25 September 2015.

 

The Committee was briefed on the annual performance for 2014/15 of the Directorate on 15 October 2015. The Committee also met with the Auditor-General on the audit outcomes on 13 October 2015. Copies of the presentations are available from the committee secretary. The Committee has already considered and reported on the respective strategic plans and budget proposals of the Directorate for 2015/16.

 

This report is structured as follows:

 

• Section 1: Sets out the mandate of the Committee, the purpose of this report (Budgetary Review and Recommendation Report) and the process to develop this report.
• Section 2: Provides an overview of the Directorate’s Vote and spending for 2014/15 as well as for part of 2015/16 (first quarter) and sets out the Directorates MTEF submission to National Treasury for 2016/17.
• Section 3: Summarises the 2014/15 report of the Auditor General for the Directorate.
• Section 4: Provides a broad overview of the changing strategic and operational environment of the Directorate for 2013/14 and 2014/15.
• Section 5: Summarises performance information per Programme for 2014/15.
• Section 6: Highlights key observations of the Committee with respect to financial and performance information for 2014/15.
• Section 7: Summarises additional information requested from the Directorate in deliberations and other reporting requirements.
• Section 8: Summarises recommendations of the Committee.
• Section 9: Conclusion.

 

1. OVERVIEW OF DIRECTORATE VOTE AND EXPENDITURE

 

1. Financial performance for 2014/15

 

The IPID received a main appropriation of R234 719 000.00 (R234.7 million) for the 2014/15 financial year, which remained unchanged during the adjustments period. However, the IPID made virements and shifts between programmes and sub-programmes to the value of R25 352 000.00 (R25.3 million) during the adjustments period mainly to address shortfalls in funding for Goods and services and Machinery and equipment. Of the total R25.3 million virements and shifts, all but R1000.00 of the funds were shifted away from Compensation of employees. These funds were shifted to three main areas:

1. A total amount of R24 233 000.00 (R24.2 million) was shifted to payments for Contractual obligations to service providers for cleaning services, the State Information Technology Agency’s (SITA) services and operating leases;
2. A total amount of R993 000.00 was shifted towards payment to effect the Implementation of Asset Management Plan; and
3. A total amount of R136 000.00 was shifted towards payments of Leave gratuities.

 

2014/15 Quarterly expenditure: As at the end of the third quarter of 2014/15 FY, spending in the Directorate was R135 million (57.5 per cent) of the available budget of R234.7 million. The Directorate had projected to spend R152.7 million thus resulting in a deviation of R17.7 million between planned and actual spending.

 

Expenditure in the Directorate increased by 56.4 per cent between the second and the third quarter of 2014/15, which was significantly lower than the expenditure increase (132.6 per cent) that was reported between the first and the second quarter of 2014/15. In percentage terms, at the end of the third quarter, lower than planned spending was visible on all four programmes but was most notable under the Legal Services programme, which had spent 21.8 per cent of the available budget against a projection of 70.7 per cent. In nominal terms, the bulk of the lower than planned spending was recorded under the Investigation and Information Management programme.

 

At the end of the 2014/15 financial year, the Directorate spent R232.4 million of its R234.7 million final appropriation, which represents 99 per cent of the total allocation. The Directorate left R2.3 million unspent at the end of the 2014/15 financial year. The expenditure recorded is a significant improvement on the expenditure recorded for the previous financial year (2013/14), in which the Directorate spent R193.1 million of its R216.9 million allocation (89 per cent of the final appropriation). 

 

Expenditure within the Departmental programmes varied significantly at the end of the 2014/15 FY. The Administration and Investigation and Information Management programmes realised an expenditure of 99.9 per cent and 100 per cent respectively. However, the Legal Services and Compliance Monitoring and Stakeholder Management programmes only realised an expenditure of 61 per cent and 95.8 per cent respectively at the end of the 2014/15 FY.

 

Unauthorised expenditure: According to the Annual Report, the Directorate did not incur unauthorised expenditure during the 2014/15 FY. The reported amount in the Directorate’s books is a prior over expenditure by programme 2 and 3 in the financial year 2008/09 and 2005/06 respectively. It was reported that the submission to request the authorisation has since been submitted to National Treasury for their consideration and by the reporting date (31 March 2015) the approval for authorisation was not yet granted.

 

Fruitless and wasteful expenditure: During the 2014/15 FY, the Directorate incurred an amount of R2 836.53 interest in various Telkom monthly payment transactions. There was also an over payment identified due to miscalculation of VAT on a supplier invoice. The identified amounts were reported in the Directorate’s ‘fruitless and wasteful expenditure register’ for further internal investigation to determine the cause and the required action.

 

Irregular expenditure: There was an amount of R4 293.24 incurred in the 2014/15 FY related to the use of prohibited service providers. The referred service providers have since been removed from the Directorate’s Supplier database to avoid recurrence.

 

1. Financial performance for 2015/16 (looking forward)

 

The IPID received a main appropriation of R234.8 million for the 2015/15 FY, which is a nominal increase of R100 thousand (0.04 per cent) compared to the R234.7 million adjusted appropriation received in 2014/15 FY. Considering inflationary costs, the Directorate’s 2015/16 budget shows a real percentage decrease of 4.54 per cent.

 

Programme R million	Budget		Nominal Increase / Decrease in 2015/16	Real Increase / Decrease in 2015/16	Nominal Percent change in 2015/16	Real Percent change in 2015/16
	2014/15	2015/16
Programme 1: Administration	78.3	74.2	-  4.1	-  7.5	-5.24 per cent	-9.58
Programme 2: Investigation and Information Management	147.5	150.8	3.3	-  3.6	2.24 per cent	-2.45
Programme 3: Legal Services	5.4	5.1	-  0.3	-  0.5	-5.56 per cent	-9.88
Programme 4: Compliance Monitoring and Stakeholder Management	3.6	4.6	1.0	0.8	27.78 per cent	21.93
Total	234.7	234.8	0.1	-  10.7	0.04 per cent	-4.54

Source: Estimates of National Expenditure 2015, Vote 20: IPID

As indicated in the Directorate’s 2015/16 APP and in the 2015 ENE, the following are the key spending priorities for the Directorate in the MTEF period:

• Strengthening investigative capacity; and
• Compliance monitoring and stakeholder management.

 

Budget cuts have, however, forced the Directorate to reprioritise. As such, the Directorate has reported in its 2015/16 APP that a number of strategic objectives during the MTSF will not be implemented, including the Expansion Strategy and the ICT Plan. More so, it was further reported that, targets in investigations as well as community outreach and stakeholder management activities will also be reduced due to budget cuts during the MTEF period. However, National Treasury has ring-fenced some funds for the establishment of the National Specialised Investigative Team (NSIT). With this ring fenced funding, the Directorate is convinced that over the MTEF period it will be able to enhance its investigative capacity and develop specialised investigative capabilities. In linking expenditure trends to the strategic goals of the Directorate over the MTSF, the Cabinet approved allocations of R22.5 million in 2015/16, R30.4 million in 2016/17 and R40.8 million in 2017/18, to ensure the strengthening of the newly established NSIT.

 

Spending for first quarter 2015/16: At the end of the first quarter of 2015/16, the total expenditure incurred by the Directorate was R53.6 million and represented 22.8 per cent of the available budget of R234.8 million. The planned spending for the first quarter was projected at R57.7 million, as such an amount of R4.1 million was reported as a deviation as at the end of the first quarter. Expenditure for the period under review has improved by 7 percentage points when compared with expenditure in the same period in 2014/15. A larger portion of the Directorate’s expenditure (i.e. 63.7 per cent) was reported under the Investigation and Information Management programme. This programme also accounted for the biggest share of the deviation in spending in the Directorate (i.e. R2.1 million). Slow spending has consistently been attributed to the non-filling of vacant posts which has consequently had a direct impact on expenditure on compensation of employees.

 

Spending on compensation of employees has slightly improved by 3.4 percentage points when compared with expenditure in the same period in 2014/15. Though this may be an indication of improved spending, it is important to note that lower than planned spending amounting to R8.1 million was reported on compensation of employees as at the end of June 2015 due to vacancies. On the contrary, higher than planned spending of R2.3 million occurred on payments for capital assets. Similarly, transfers and subsidies deviated from planned spending by 15.4 percentage points as the Directorate had no planned transfers in the first quarter but incurred expenditure amounting to R75 000.

 

It should be noted that although there was no budget allocation for payments for capital assets in 2015/16, an amount of R2.3 million was shifted from current payments (mainly goods and services) towards payments for capital assets, more specifically to machinery and equipment, in order to provide for machinery and equipment which was ordered at the end of 2014/15 but only delivered in 2015/16. Subsequent to the shifting of funds to machinery and equipment, goods and services recorded higher than planned spending of R1.8 million as at the end of the first quarter. The drawings schedule for the Directorate was revised for the months: June, July and August 2015 in order to make provision for expenditure that had initially not been budget for, specifically for machinery and equipment.

 

1. Financial needs over the medium term

 

According to the indicative medium term baseline allocations, a total of R234.8 million is allocated to the Directorate for 2015/16 (growing to R246.1 million in 2016/17 and R259.9 million for 2017/18). Owing to delays in filling posts, including appointing the 9 provincial heads of department (which has been effected during 2015/16), the Directorate underspent its total budget allocation for 2012/13 by 13 per cent and for 2013/14 by 11 per cent. This compromised the targeted turnaround time of 90 days for the completion of an investigation. There was also underspending, linked to the delays in filling posts, in goods and services and payments for capital assets. Consequently, Cabinet approved budget reductions in 2015 of R12.4 million in 2015/16, R16.2 million in 2016/17 and R17.8 million in 2017/18 in goods and services and payments for capital assets.

 

During the 2015/16 budget hearings, the Directorate presented a comprehensive Expansion Strategy to enhance its national footprint, which was to be implemented over a four year period (2015 – 2019). The Directorate requested an additional amount of R245 million over the MTEF to effect compensation for the Expansion Strategy. However, the additional funding was not approved due to the lack of filling of posts in the core programme of the Directorate.

 

1. REPORT OF THE AUDITOR-GENERAL (AG) FOR 2014/15

 

The IPID received an unqualified audit opinion from the Auditor-General. The AG’s report also highlights the following:

• The financial statements of the Directorate submitted for auditing were not initially prepared in accordance with the prescribed financial reporting frame-work and supported by full and proper records as required by section 40(1) (a) and (b) of the Public Finance Management Act.
• Material misstatements of disclosure items identified by the auditors in the submitted financial statement were subsequently corrected and the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified audit opinion.
• In terms of the Internal Audit function of the IPID, the AG stated that the function did not evaluate the reliability and integrity of financial and operational information, as required by Treasury Regulation 3.2.11(b).
• In terms of leadership, the AG reported a lack of effective oversight by management with regards to processes that ensure compliance with laws and accuracy and completeness of financial and information reported.

• In terms of financial and performance management, the AG stated that management did not have adequate processes in place to ensure the accuracy of financial information reported.
• In terms of investigations, the matter regarding the lease contract of the City Forum Building from the prior year is still under investigation by the Special Investigative Unit (SIU).

 

1. OVERVIEW OF THE STRATEGIC ENVIRONMENT OF THE DIRECTORATE

 

The aim of the Independent Police Investigative Directorate is to ensure independent oversight over the South African Police Service (SAPS) and the Municipal Police Services (MPS), and to conduct independent and impartial investigations of identified criminal offences allegedly committed by members of the SAPS and the MPS, and make appropriate recommendations.

 

The mandate of the Directorate has been transformed in line with the IPID Act, 2011. In essence, the Directorate is evolving from a complaints-driven organisation to an investigative-driven organisation. In addition, the Act tightens the mandate of the Directorate to focus on more serious and priority crimes committed by members of the police services; and places strict reporting requirements on the police services on matters that must be reported to the Directorate for investigation and for the implementation of disciplinary recommendations. In terms of the Act, in addition to the requirement to investigate deaths in police custody and as a result of police action, the Directorate must also investigate: complaints on discharge of an official firearm by a police member; rape (on or off duty) by a police member; rape of any person in custody; complaints of torture or assault by a police member; corruption matters; and other matter referred from various sources.

 

The National Planning Commission of South Africa identified twelve measurable performance outcomes in 2010 to assess achievements made by government departments in terms of effective service delivery. These twelve outcomes was also incorporated in the National Development Plan (NDP), which envisages that in 2030 people living in South Africa feel safe at home, at school and at work and that they enjoy a community life free of fear. The two outcomes specifically related to the IPID are:

• Outcome 3: All people in South Africa are and feel safe and secure
• Outcome 12: An efficient, effective an development orientated public service and an empowered, fair and inclusive citizenship

 

The IPID focuses largely on outcome 3 in ensuring a more accountable police service by combating corruption within the police and thereby enhancing its effectiveness and its ability to serve its mandate to deter crime.

 

The Directorate has identified eleven (11) strategic priorities for the 2014/15 year, some of which may span over the medium term expenditure framework (MTEF):

1. Filling of all senior management positions;
2. Establishment of a consultative forum;
3. Establishment of the integrity and protection unit;
4. Continue to refocus the Directorate from a complaints driven institution to an investigation driven institution;
5. Training and capacity building of investigators;
6. Development of personnel performance management systems;
7. Obtain an unqualified Audit;
8. Establishment of a consultative forum to conduct public education;
9. Review of delegation of functions in terms of human resources and finance;
10. Influence/feed into policy development within the SAPS/MPS through recommendations; and
11. Identification and investigation of systemic corruption cases.

 

1. PERFORMANCE INFORMATION FOR EACH PROGRAMME IN 2014/15

 

1. Programme 1: Administration

 

The purpose of the Administration Programme is to provide management support to the IPID. It provides policy and strategic leadership to the Directorate. It also enhances the ability of the Directorate to deliver on government priorities and objectives.

 

During the 2014/15 financial year, the Directorate focussed on the following strategic objectives (outputs):

• Public Awareness campaigns;
• Performance Management System;
• Capacity Building; Human resource Management Plan;
• ICT and Governance Framework; and
• Realignment of organizational functions and structure.

 

The Administration Programme managed to achieve nine (9) out of 12 planned targets. In other words, the Programme achieved 75 per cent success rate on its performance targets.  Although the programme’s overall budget allocation of R78 338 million for the 2014/15 FY declined when compared to the R89 050 million allocation for 2013/14 FY, the majority of performance targets were met with the acceptable spending target of 99.9 per cent. Accordingly, a large allocation of R41 489 million for the 2014/15 FY went to Corporate Services sub-programme and as such, the bulk allocation of expenditure was also reported in the same subprogramme, more especially under Goods and Services due to the centralised Information Communication Technology (ICT) related activities such as data-lines, mainframe services, internet services and software licences. The office accommodation expenditure under devolution of rates was also accommodated and has reported 100% expenditure.

 

1. Programme 2: Investigation and Information Management

 

The purpose of the Investigation and Information Management Programme is to strengthen the Directorate’s oversight role over the SAPS and MPS by conducting investigations, within 90 days of receipt of a complaint, making appropriate recommendations on investigations in the various investigation categories within 30 days, and submitting feedback to complainants within 30 days of the closure of the investigation. The Programme also enhances efficiency in ‘case management’ over the medium term by increasing the percentage of cases registered and allocated within 72 hours of receipt from 86 per cent in 2012/13 to a projected 100 per cent in 2016/17 and maintains relationships with other state security agencies through ongoing national and provincial engagement forums.

 

During the 2014/15 FY, on this Programme, the Directorate focussed on the following strategic objectives (outputs):

• Case Management system;
• Completed investigations;
• Recommendation reports;
• Disciplinary recommendations; and
• Criminal recommendations.

 

The Investigation and Information Management programme achieved only two (2) out of 16 planned targets, which is a success rate of 12.5 per cent on its performance targets at the end of the 2014/15 FY. The Investigation and Information Management Programme underperformed on performance targets during the 2014/15 FY. Most of the targets were not met due to, amongst others, capacity constraints, vast travel distance and weaknesses in internal controls.

 

In as far as performance and/or delivery on planned targets is concerned, the 2014/15 Annual Report also highlights the following:

• Nine hundred and fifty (950) matters were put on the court rolls in 2013/14, as a result, investigators spent more time attending trials in the courts. This situation resulted in less time being available for completion of investigations during the reporting period;
• Of the matters that were finalised in the courts, there were fifty-eight (58) convictions in criminal matters;
• Two hundred (200) disciplinary matters were finalised by the SAPS. The sentences ranged from verbal warnings to dismissals from services; and
• The Directorate in the current reporting period achieved a completion rate of 48% while in the previous financial year it achieved a 56 per cent completion rate. This means that there was 8% decrease on the completion of cases.

 

At the end of the 2014/15 FY, the Programme spent 100 per cent (R147.4 million) of its R147.4 million final appropriation. An insignificant amount of R6 thousand was left unspent. 

 

1. Programme 3: Legal Services  

 

The purpose of the Legal Services Programme is to ensure that investigations are conducted efficiently and within the ambit of the law by providing investigators with adequate legal advice and guidance on an ongoing basis, during and after completion of investigations.

 

During the 2014/15 FY, on this Programme, the Directorate focussed on the following strategic objectives (outputs):

• Legal support and Administration;
• Investigation Advisory Services; and
• Legal and Litigation Services.

 

The Legal Service Programme managed to achieve only three (3) out of its 10 planned targets at the end of the 2014/15 FY, which represents an success rate of 30 per cent of its performance targets. In terms of expenditure, the Directorate spent R3.2 million of its R5.3 million final appropriation, which is 61.0 per cent of its budget at the end of the 2014/15 FY (an amount of R2 million was left unspent). Compared to the previous reporting period (2013/14 FY), the service delivery performance improved as the Programme achieved only one (1) out of its 16 predetermined targets (16.6 per cent). However, in term of financial performance, the Programme regressed as the Programme spent 74.3 per cent of allocated budget.  

 

1. Programme 4: Compliance Monitoring and Stakeholder Management

 

The purpose of the Compliance Monitoring and Stakeholder Management Programme is to safeguard the principles of cooperative governance and stakeholder management through ongoing monitoring and evaluation of the quality of recommendations made to the SAPS and MPS and also reporting on the police service’s compliance with reporting obligations in terms of the IPID Act (2011).

 

During the 2014/15 FY, on this Programme, the Directorate focussed on the following strategic objectives (outputs):

• Public Awareness Campaigns;
• Stakeholder Management;
• Recommendation reports; and
• Compliance Monitoring.

 

The Compliance Monitoring and Stakeholder Management Programme managed to achieve 5 out of 7 planned targets. In other words, the Programme achieved 71.4 per cent success rate on its performance targets at the end of the 2014/15 FY. The Programme managed to spend R3.4 million of its R3.5 million final appropriation, which is 95.8 per cent expenditure. 

 

1. COMMITTEE OBSERVATIONS

 

The following are key observations of the Committee with regard to the Directorate’s financial performance and service delivery performance for 2014/15:

 

1. Financial performance

 

Material misstatements: The Committee raised the repeat findings by the AG on financial misstatements as a serious concern and that the AG stated that the Directorate only received an unqualified audit opinion because they were able to correct all the misstatements identified during the audit process. The Committee indicated that it was not convinced by the presentation by the Directorate that the identified challenges can be adequately addressed. The failure to prepare financial statements in accordance with the prescribed financial reporting framework, was identified as a significant risk to the ability of the Directorate to effect efficient service delivery.

 

The Committee further indicated that the identified root cause for the deficient financial statement was inadequate skills and should be addressed as a matter of urgency by the Directorate. The Committee indicated that it supports the recommendations made by the AG that the different assurance levels providers (management, accounting officer and audit committee) should timeously and adequately review the financial statements and compare these to the supporting documentation. The Committee suggested that the Directorate should consider the use of external stakeholders, like experts from National Treasury to assist the Directorate with the upskilling of staff and also to perform these assurances until the Directorate is able to perform these functions independently. The Committee also indicated that the continuous inadequacy in financial statements is unacceptable and urgent intervention is needed to address the situation and prevent a repeat finding in the 2015/16 FY.     

 

In response, the Directorate indicated that the Director: Internal Audit has been appointed earlier this financial year (2015/16) and is expected to have a positive impact on the accurate reporting on financial statements and adherence to the prescribed reporting framework. The Directorate further indicated that it will consider the suggestion made by the Committee to engage National Treasury for assistance in its financial component and also the upskilling of staff. The Directorate further indicated that the capacity constraints experienced in 2014/15, have been addressed to a large extent, but that it will continue to focus on the capacitation of its financial environment.    

 

Underspending: The Committee noted the gains made by the Directorate to reduce its overall underspending at the end of the 2014/15 FY (99 per cent) compared to the underspending recorded in 2013/14 (89 per cent). However, the Committee noted with concern the variance in expenditure levels within the individual programmes, specifically the significantly low expenditure recorded under the Legal Services programme (61 per cent). The Committee indicated that the Legal Services programme provides a key support service to the Directorate’s core programme (Investigation and Information Management programme) and should increase its performance both in terms of financial and service delivery performance.

 

Irregular expenditure: The Committee noted the achievement of the Directorate in the significant reduction of irregular expenditure from R512 thousand in 2013/14 to R4 thousand in 2014/15. Even though the amount incurred in 2014/15 is low, the Committee raised concern about the use of prohibited service providers, which led to the irregular expenditure recorded and requested the Directorate to indicate what corrective step have been taken by the Directorate to mitigate against the use of prohibited service providers in future.

 

The Directorate indicated that a two-pronged approach has been followed to correct and prevent the recurrence of the use of prohibited service providers. Firstly, the specific service providers have been removed from the supplier database and secondly, staff was sensitised to always confirm whether a proposed supplier is listed on the Treasury supplier database. The Committee urged the Directorate to continue its performance on irregular expenditure in future.

 

Unauthorised expenditure: The Committee raised concern regarding the unauthorised expenditure of R891 thousand that was incurred in the 2005/06 and 2008/09 financial years and is still reflecting of the financial statements of the Directorate in the 2014/15 FY. The Directorate indicated that they have submitted a request for authorisation to the National Treasury, but has not received feedback by the end of 31 March 2015. The Committee registered its concern about the long lead time this amount is taking to clear.   

 

Accruals:  The Committee raised concern about the increase of accruals in 2014/15 (R5.3 million) compared to the previous financial year (R3.5 million). The accruals was mainly due to the late submission of invoices. Recently, government has prioritised the payment of invoices within 30 days and the non-compliance to this directive is seen in a serious light by the Committee. The Directorate acknowledged that this has been a challenge in the past, but indicated that the invoice system has been centralised at head office, which promises to ensure improved control on the timeous payments of invoices within the regulatory prescripts. 

 

1. Service delivery performance

 

The Committee raised a number of fundamental concerns with the performance of the Directorate during the 2014/15 FY. However, the Committee noted that the Directorate is the only Department within the police portfolio that did not have any material findings from the AG on the usefulness and reliability of its predetermined performance targets, which is a great achievement. The AG did however identify findings in terms of the reliability of predetermined performance targets during the audit process, which could be corrected by the Directorate (as such no material findings were stated). In spite of the achievements on the reliability and usefulness of its targets, the Committee stated that this achievement was largely negated by the repeat findings of the AG on financial misstatements and the underperformance of the Directorate in 2014/15. The Department achieved less than half of its overall predetermined targets (42 per cent). Additionally, the Committee noted that a number of performance targets of the Directorate were set too low and should be increased, as to have an increased positive impact on the behaviour of the SAPS and MPS.     

 

1. Programme 1: Administration

 

Despite the fact that the Directorate stated that they had achieved most of their targets (and were thus satisfied with their performance in this Programme a number of serious concerns were raised by the Committee with regard to performance in this Programme. The Committee raised a fundamental problem with the fact that indicators and targets do not measure the outcome/effect of the initiative. As a result, while performance may look ‘good’ on paper, in practice there are in fact serious problems.

 

Underperformance on employment equity (gender): The Committee raised concern about the underperformance on the Directorate’s predetermined performance indicator to attain 50 per cent female representation in senior management at the end of 2014/15. The Committee noted that although it was a slight deviance of 4.5 per cent and a significant improvement on the performance of the previous financial year, the Directorate should endeavour to meet this target. The Directorate indicated that the Employment Equity Strategy has been approved and should have a positive impact on the equity on the above mentioned categories.

 

Performance rewards: The Committee raised significant concern about the payment of performance rewards to 42 per cent of the Directorate’s staff during 2014/15, especially in the light of its underperformance on predetermined performance targets. The Committee stated that if the Directorate received a clean audit, the high number of performance reward could have been less challenging (albeit still too high) The Committee indicated that, in the year under review, the SAPS paid no performance rewards and the CSP rewarded 14 per cent of its staff during the year under review.

 

The Directorate indicated that the management representatives could not account for the performance rewards as it was approved in 2013/14, but only paid in 2014/15 and as such is reflecting in the 2014/15 Annual Report and financial statements. The Committee took issue with this statement and indicated that it is the responsibility of the accounting officer to account to Parliament, regardless whether he or she was in charge at the time of the occurrence. The Committee further indicated that it will closely monitor the payment of performance rewards for the 2014/15 FY, as it will presumably be reflected in the 2015/16 Annual Report of the Directorate. The Committee cautioned the Directorate that if the Directorate did not improve its performance, the awarding of performance rewards will be troublesome and further urged the Directorate to be discerning on the approval of performance reward. The Committee stated that once the Review Committee of the Directorate has completed its work, the amount and names of recipients should be furnished to the Committee (both for 2013/14 and 2014/15).

 

Disability target: The Committee questioned the seemingly low target to employ two (2) per cent (of total employees) with disabilities and raised concern that this low target was not achieved. The Directorate indicated that the two (2) per cent target represents the minimum number of employees with disabilities to be employed and that it does not prohibit them from employing a larger percentage of persons with disabilities. The Directorate further indicated that the figure has improved from the previous year and that the representation of people with disabilities will be addressed with the implementation of its Employment Equity Plan in the 2015/16 FY. The Committee indicated that the progress on this target will be closely monitored in future and further urged the Directorate to achieve this target in 2015/16. 

 

Head Office lease: The Committee raised concern about the lengthy lead time it is taking to conclude the challenges around the lease of the its head office in the City Forum building and requested a progress report, especially in terms of the finalisation thereof. The Directorate indicated that it has furnished the Department of Public Works (DPW) with a notice to vacate the office. This process normally takes up to 18 months to resolve. The Directorate indicated that the response from DPW is still pending and that the lease expires towards the latter part of the current financial year (2015/16), which places a measure of urgency on the issue to be resolved. The Directorate has engaged with DPW and requested an urgent meeting to resolve the lease agreement and also to secure new office accommodation. The Directorate indicated that they are unable to indicate when the process will be finalised prior to the meeting scheduled with DPW. The Committee indicate that the Directorate should provide a progress report on the finalisation of the engagements with DPW and whether alternative office accommodation was secured.

 

Information technology governance: The Committee noted with concern the findings of the AG around the lacking information technology control environment of the Directorate in 2014/15 and indicated that this environment needs improvement. The Committee further indicated that this inadequate control presumably led to various information leaks to the public domain and that the security of information should be held in very high regard by the Directorate. The Directorate conceded that its current information technology system, especially in terms of security is lacking, but that the Directorate has taken measures to address these challenges. The Directorate has requested the assistance from the State Security Agency (SSA) to identify the most critical gaps in the ICT environment. The Directorate indicated that the SSA did assist in this regard and that a report has been furnished.

 

Vacancies: As at the end of June 2015, a total of 347 out of 395 posts were filled and the overall vacancy rate was 12.2 per cent. The Investigation and Information Management programme reported a larger share of the vacancies (33 vacant posts) when compared to other programmes. Overall, the vacancy rate in the Directorate was reduced by 0.4 percentage points when compared with the same period in 2014/15.

 

Integrity: The Committee raised concern about the recent allegations of unfair labour practices, within the Directorate that lead to several court challenges. The Committee wanted assurance that the Directorate is operating with integrity and follows due process within human resource processes. The Directorate indicated that its integrity is beyond reproach and that it follows human resource prescripts as provide by government and public service legislation in terms of disciplinary actions strictly. The Directorate indicated that the prescripts allows two options, which includes either a precautionary suspension or a transfer. As such, the Directorate indicated that the proper procedure was followed as the court challenge also found in favour of the IPID. The internal investigation in relation to these cases are still ongoing.   

 

1. Programme 2: Investigation and Information Management

 

The core business of the Directorate resides in Programme 2, and this Programme is thus key to measuring performance of the Directorate. The significantly overall underperformance on predetermined performance targets during 2014/15, was raised as a significant concern of the Committee.

 

Professional police service: The Committee requested the Directorate to expand on the measures it has taken (and will take in future) to impact positively on the realisation of the NDP goal to increase the professionalism of the police service. In terms of the draft White Paper on Police, professionalism is underpinned by adherence to the SAPS Code of Conduct, which guards against the abuse of police powers. However, in 2014/15 there has been an upward trend of cases involving deaths in police custody, which points towards a possible abuse of power and subsequently a non-adherence to the SAPS Code of Conduct. The Committee indicated that the IPID can play a positive role in increasing police professionalism by effectively addressing these kinds of transgressions and abuse of power by the SAPS as provided for in the IPIDs enabling legislation.

 

The Directorate indicated that it is indeed a large responsibility and that they are confident that they will be able to assist in realising these goals of the NDP. It was stated that a vital organ in this is the Consultative Forum established between IPID and the CSP, but noted that the engagements were not strategic in nature and that in future, these engagements will become more strategic to identify the collective measures the IPID and CSP can take, as primary oversight bodies over the SAPS, to affect positive changes in the behaviour of SAPS members. The Directorate further indicated that scheduled interactions with the SAPS on awareness training during station lectures will be prioritised.    

 

Marikana investigation: The Committee requested an update on the IPID investigations regarding the incident that occurred in Marikana during August 2012, where several striking mine workers were killed during an altercation with the SAPS. The Directorate indicated that the investigation is conducted jointly by the IPID and investigators from the Office of the National Director of Public Prosecutions (NDPP). The investigation is ongoing.

 

Independence of investigations: The Committee asked whether the cooperation between the Directorate, the Directorate for Priority Crime Investigation (DPCI) and Crime Intelligence component of the SAPS during investigation impedes or has the possibility to compromise the independence of the Directorate during investigations. The Committee further indicated that even if these external agencies are only used in an advisory capacity, it has the capacity to affect the independence. The Committee requested assurance that the possible blurring of lines will be addressed. The Directorate indicated that the Crime Intelligence component of the SAPS is used when a need for intelligence gathering arises, as SAPS is one of the two agencies legislated to collect information. And that it is illegal for the Directorate to gather intelligence. The DPCI is used when there arises a need for the arrest of civilians, as the policing powers given to IPID investigators extends only to the arrest of SAPS members and not civilians. The Directorate further indicated that sometimes independent forensic and ballistic experts are used when they are unable to use the capabilities of the SAPS or Department of Health. The Directorate indicated that the ideal would be to have internal capacity of these functions, but that budgetary constraints prohibits the establishment of these capabilities. It was further noted that external agencies are used in a minority of cases and that the use of these agencies does not impede the independence of the Directorate in any manner.       

 

Capacity constraints/vacancies: The Committee raised significant concern about the lack of capacity and the high vacancy rate within the Investigation and Information programme. The programme recorded a vacancy rate of 18 per cent (47 posts) at the end of 31 March 2015. The lack of adequate personnel was raised as the reason for the underperformance on predetermined performance targets during the 2014/15. The Committee noted that some gains have been made in this regard at the end of the first quarter of the 2015/16 FY (ending in June 2015), as the vacancy rate within this programme was reduced to 12.5 per cent (33 vacant posts). However, it was noted that this vacancy rate is still too high and should be addressed as it will no doubt impact negatively on the successful achievement of targets at the end of the 2015/16 FY.

 

Linkages in terms of statistics: A central concern of the Committee was that there was no attempt made by management to link the information contained in the statistics provided for the different stages of a case (i.e. from number of complaints and notifications received, number of investigations completed, number of recommendations made to courts/NPA, number of recommendations made to SAPS, number of withdrawals and number of convictions/no conviction). It is only by linking the information, that trends and problems can be uncovered, and an accurate picture of the performance of the Directorate ascertained. For example, of the 983 cases referred to the NPA, the majority of cases (765 cases) are still awaiting response from the NPA, 52 cases were cleared for prosecution, additional information on three (3) cases was requested and only one (1) guilty verdict was imposed.  

 

The Committee questioned whether the outcomes, especially in terms of one (1) guilty verdict and additional information requested, were as a result of poor investigations. The Directorate indicated that these outcomes are not due to poor quality of investigations and further indicated that in 2014/15, a total of 58 convictions were made. The Committee indicated that this figures contradicted the figures of the Annual Report and urged the Directorate to report the appropriate and correct figures applicable to the financial year under review.

 

In terms of the three (3) cases in which the NPA requested additional information, the Directorate conceded that some junior investigators need additional training. The Directorate stated that this is not to say that these junior investigators are not trained, but pointed more towards a lack of experience. Under the mandate of the Independent Complaints Directorate (ICD) (prior to the establishment of the IPID and review of its mandate), Case Workers and Case Analysts posts existed. These two groups of people needed to be incorporated into the IPID and are currently trained as investigators.  

 

Decentralisation model: The Directorate indicated that its current national footprint is limited and that it has only a provincial and satellite office in each province, with the Mpumalanga and Free State provinces having two satellite offices. However, the additional satellite offices in these provinces were established in partnerships with other government departments, such as the Department of Justice and Constitutional Development, which provides a room at the court building in Mpumalanga province for the use of investigators and as such, IPID does not incur any costs. The acting Executive Director stated that he has requested other provincial offices, especially the Eastern Cape, to follow similar innovations to partner with other departments to expand the footprint of the Directorate. In terms of the decentralised work model presented during the 2015/16 budget hearings, the acting Executive Director indicated that the model is currently piloted and based on the outcomes of this pilot, the further roll out of this model will be evaluated.

 

Training: The Committee indicated that independent qualifications for investigators must be developed and registered with the South African Qualifications Authority (SAQA). This will further establish the independence of the Directorate and requested that the Directorate should provide an update on the progress made with various tertiary institutions in the development of an independent qualification.  

 

Trend analysis: The Committee questioned whether the Directorate is currently conducting trend analysis of investigations to identify specific environments where the proportion of cases of assault etc. is higher than in other environments, like in public protests. The Committee inquired whether these analyses are given to the SAPS to inform areas or environments where specific interventions are needed. The Directorate indicated that these analyses are not currently being conducted, but acknowledged that such analyses would be useful, especially to contribute to the professionalising of the police service.     

 

Case intake: The Committee raised concern about the disjoint between the insignificant increase of two (2) per cent in case intake of 2014/15 and 2013/14 against the significant decrease in performance over the same period. The Directorate indicated that various measures to improve performance have been implemented, including the prioritisation of a brought forward monitoring tool and increased supervision of management.    

 

Increase in torture cases: The Committee raised concern about the significant increase in the intake of cased of torture in term of Section 28(1)(f) of the IPID Act, 2011. Specifically, the increase in torture cases possibly points towards an increase in the abuse of power by members of the SAPS, especially since these incidents happen in police custody.

 

Decrease in cases of systemic corruption: The Committee raised concern about the 75 per cent decrease in cases of systemic corruption investigated by the Directorate in 2014/15. Also, the Committee further indicated that the Directorate should prioritise the border safeguarding environment, as allegations of systemic corruption are rife. The Directorate acknowledged this recommendation and indicated that focus will be placed on this area in order to assist government in realising its MTSF priorities to reduce corruption across the public service sector.  

 

1. Programme 3: Legal Services

 

Legal fees: The Committee requested the Directorate to indicate whether the Department is paying the legal fees/council of the Executive Director. The Directorate indicated that R500 thousand in legal fees were paid during 2014/15 regarding the above, but that the existing contract with Adams and Adams Attorneys that was entered into to represent the Executive Director in his suspension case was terminated by the Acting Executive Director of IPID and that it is not expected to incur any additional costs in this regard in future. The Acting Executive Director indicated that the amount (R500 thousand) is currently still in the suspense account of the Directorate. The Acting Executive Director further stated that the investigation of the Public Service Commission has been finalised and that the Directorate will deal with the recommendations and findings.    

 

Capacity: The Committee noted with concern that capacity constrains within the Legal Service programme was stated as the main driver of underperformance in this programme during the 2014/15 FY. The Committee urged the Directorate to fill the vacancies as a matter of urgency as this programme provides crucial support to its core programme. The lack of support from this programme impacts negatively on the ability of investigators to effectively discharge their duties.

 

1. Programme 4: Compliance Monitoring and Stakeholder Management

 

Community outreach: The Committee raised the underachievement on the target for community outreach events as a concern. The Directorate planned to conduct 306 community outreach events in 2014/15, but only managed to conduct 232 events, which is 74 events less than planned. The Directorate indicated that investigators from Programme 2: Investigation and Information Management is currently performing this function as the Directorate does not have a dedicated component in provinces to deal with events. The Directorate further indicated that this function is not included in the job function of investigators and as such, the core function of investigators was prioritised during the 2014/15 FY, which led to the non-achievement of this target. It was further stated that the target for 2015/16 was adjusted downwards to 216 events, as the Directorate does not have the capacity to conduct these events. The Directorate stated that a Communications and Marketing officer is needed in each province to address these challenges.

 

1. SUMMARY OF DIRECTORATE’S REPORTING REQUIREMENTS

 

The following table provides a summary of the additional information requested from the Directorate during the hearings and other reporting requirements.

 

REPORTING MATTER	ACTION REQUIRED	TIMEFRAME
Findings of the AG	Action plans to address the repeat findings made by the AG on material misstatements, including action steps, timeframes and targets.	Submitted by 20 November 2015
	Monthly progress reports on actions taken as per the action plan together with financial targets  achieved	First report due on 15 January  2015
	Action plan to address the stagnation within the information technology environment	Submitted by 30 October 2015.
	Action plan to address the deficiencies with Internal Audit	Submitted by 30 October 2015.
	Action plan to address the deficiencies with Risk Management	Submitted by 30 October 2015.
Underspending	Quarterly expenditure reports	One (1) month after the end of each financial quarter
	Action plan to address variances in quarterly expenditure and bring it in line with linear benchmark set by Treasury.	Submitted by 20 November 2015
Vacancies	Action plan in the filling of funded vacancies within the Directorate, especially the vacancies within the Investigation and Information Management programme.	Submitted by 30 October 2015.
City Forum building lease contract	Report back on the engagement with DPW on vacating the premises and securing of new office accommodation.	Submitted by 30 October 2015.
Performance rewards	A breakdown of the recipients of performance bonuses for 2012/13 and 2014/15, together with the amounts, salary bands and post of individual recipients.	The list for 2013/14 must be submitted by 30 October 2015. The list for 2014/15 should be submitted upon completion of the Review Committee process.
Station lectures to create awareness on police professionalism	List of scheduled engagements for the remainder of the 2015/16 FY (station lectures).	Submitted by 30 October 2015.
	Summary of the content of awareness talks given at station lectures.	Submitted by 30 October 2015.
	Narrative on how these lectures are received by members of the SAPS and indicate the manner in which impact will be assessed.	Submitted by 30 October 2015.
Linkages of statistical information	Breakdown of all Section 28 case categories, including recommendations and outcomes, for 2013/14 and 2014/15 in order for the Committee to develop an understanding on the number of cases that span various financial years.	Submitted by 30 October 2015.
Training	Progress report on the development of an independent qualification for IPID Investigators.	Submitted by 30 October 2015.
	A breakdown of the number of Case Workers and Case Analysts (from ICD era) taken up by the Investigations programme, including the efforts made to increase the training provided to these individuals to become investigators.	Submitted by 30 October 2015.
Torture cases	Analysis of the significant increase in torture cases during 2014/15 compared to 2012/13. The report should also include the number of cases registered to date.	Submitted by 30 January 2015.
Trend analysis	Identify areas or environments where specific cases are higher than others.	Submitted by 30 January 2015.
Municipal Police Service	Report delineating all instances (total case intake, provincial case intake, comparisons, provincial breakdown for all section 28 categories, completion of cases, recommendations and outcomes) reported in statistical report section of the IPID Annual Report between the SAPS and the MPS.	Submitted by 30 October 2015.

 

1. SUMMARY OF RECOMMENDATIONS

 

1. 2016/17 additional funding: The Committee recommends that it is unable to support requests for additional funding over the MTEF (2014-2019) before the present funded vacant posts are filled in the Directorate, especially within the Investigation and Information Management programme, which is the core programme of the Directorate.
2. Material misstatements: The Committee indicated that it supports the recommendations made by the AG that the different assurance levels providers (management, accounting officer and audit committee) should timeously and adequately review the financial statements and compare these to the supporting documentation. The Committee recommends that the Directorate should consider the use of external stakeholders, like experts from National Treasury to assist the Directorate with the upskilling of staff and also to perform these assurances until the Directorate is able to perform these functions independently.   
3. Underspending: The Committee welcomes the improved spending recorded by the Directorate at the end of the 2014/15 FY compared to the previous financial year. The Committee recommends that internal control around the quarterly expenditure of the Directorate must be strengthened in future to ensure that quarterly expenditure is closely aligned to the linear expenditure benchmarks set by National Treasury to mitigate against a disproportionate expenditure in the fourth quarter of any particular financial year.   
4. Irregular expenditure: The Committee recommends that the Directorate must provide continuous training of staff and awareness in order to ensure that personnel do not use prohibited service providers when procuring services and always verify the supplier against the National Treasury Supplier Database.
5. Unauthorised expenditure: The Committee recommends that the Directorate must endeavour to address the outstanding unauthorised expenditure incurred in the 2005/06 and 2008/09 financial years without delay and enter into renewed engagements with National Treasury to clear this expenditure.
6. Delay in payments of invoices: The Committee recommends that the Directorate must pay invoices within the stipulated timeframes and also recommends that the Directorate take the necessary care to prevent further delays with the new centralised approach to invoice payment.
7. Underperformance: The Committee recommends that the Directorate must address the overall underperformance on predetermined performance targets in future years. The disjoint between expenditure (high at 99 per cent) and performance (low at 42 per cent) should be brought in line with each other.
8. Employment equity: The Committee recommends that the Directorate must increase its representation of people with disabilities within the organisation and also the representation of females in senior management.
9. Performance rewards: The Committee recommends that the Directorate must review its performance rewards structure and ensure that performance rewards are only awarded when deserved. There should be alignment between performance achieved (as presented in the Annual Report) and performance rewards awarded.
10. Vacancies: The Committee recommends that funded vacancies must be filled as a matter of urgency, especially in the Investigation and Information and Legal Services programmes. 
11. Information technology: The Committee recommends that the Directorate must ensure the safety of electronic information and strengthen the governance of the IT environment.
12. Training: The Committee recommends that the Directorate must prioritise the development of an independent qualifications for IPID Investigators and that this qualification must be registered at SAQA.
13. Independence: The Committee recommends that the independence of the Directorate must be protected while cooperating with the NPA, DPCI and SAPS in conducting investigations.
14. Trend analysis: The Committee recommends that the Directorate should conduct a trend analysis of cases to identify areas or environments where specific categories of crimes (as per section 28 of the IPID Act, 2011) are proportionally higher than others to assist the SAPS in identifying specific areas where intervention in terms of behaviour is needed.
15. Stakeholder management: The Committee recommends that stakeholder management should be prioritised, especially in terms of higher level engagements with Provincial Members of the Executive Council (MECs) and Provincial Minister (Western Cape) responsible for community safety and respective Heads of Departments (HODs).
16. Systemic corruption: The Committee recommends that the Directorate must prioritise known environments where systemic corruption is regarding to be widespread, especially in the border environment.
17. City Forum Building: The Committee recommends that the Directorate must prioritise the engagements with DPW regarding the finalisation of the City Forum lease and that new office accommodation is secured as soon as possible.
18. Reporting on figures: The Committee recommends that the Directorate should report the correct figures applicable to the financial year under review in Annual Reports, like the challenges identified regarding to the figures of performance rewards and linkages in statistical information. The Directorate could consider the use of footnotes to clarify issues around data presented in the Annual Report.
19. Reporting on Municipal Police Services (MPS): The Committee recommends that the Directorate must report separately on all data for the SAPS and MPS (total case intake, provincial case intake, comparisons, provincial breakdown for all section 28 categories, completion of cases, recommendations and outcomes) captured in the statistical report section of its Annual Report in all future Annual Reports (starting in 2015/16).

 

1. CONCLUSION

 

The inability of the Directorate to submit financial statements for auditing that is prepared in accordance with the prescribed financial performance frameworks for the third consecutive  financial year forms the key concern of the Committee on performance of the IPID during the 2014/15 financial year. The fact that the misstatements could be corrected is the only reason for the Directorate not receiving a qualified audit opinion in the year under review. The deficiencies that lead to the material misstatement, mainly inadequate skills, should be address by the Directorate as a matter of urgency. The Committee also reiterates the importance for the improvement of first and second levels of assurance, specifically in terms of the internal audit unit capacity of the Directorate.

 

The second key concern of the Committee relates to the underperformance of the Directorate on predetermined performance targets, which was mainly due to capacity constrains exacerbated by the failure to fill critical vacancies within its core programme.

 

The Committee strongly indicated that the IPID can make a significantly positive contribution to increase the professionalism of the SAPS as the Directorate holds the legislative mandate to impact on the behaviour of members of both the SAPS and Municipal Police Service. The IPID must realise the full potential of its mandate and address criminality within the national and municipal police services without fear or favour.   

 

Report to be considered.