ATC170516: Report of the Portfolio Committee on Home Affairs on the Annual Performance Plan and Budget Vote 5 of the Department of Home Affairs, Dated 16 May 2017

Home Affairs

Report of the Portfolio Committee on Home Affairs on the Annual Performance Plan and Budget Vote 5 of the Department of Home Affairs, Dated 16 May 2017
 

The Portfolio Committee on Home Affairs (the Committee) having met with the Department of Home Affairs (DHA), the Electoral Commission of South Africa (IEC) and the Government Printing Works (GPW) on their Annual Performance Plans (APPs) and budgets for 2017/18, reports as follows:

1. INTRODUCTION

1.1. Parliament of the Republic of South Africa, through the Portfolio Committee on Home Affairs, conducts oversight over the DHA, the IEC and GPW.  The Committee met with the DHA on 14 March 2017 to receive a briefing on the APP and budget of the DHA for the 2017/18 financial year. The Committee further met with the IEC and the GPW on their APPs and budgets on 2 May 2017 and 9 May 2017 respectively.

2. THE DEPARTMENT OF HOME AFFAIRS

2.1. The Annual Performance Plan for 2017/18 Financial Year

2.1.1. The delegation from the DHA was led by the Director-General (DG) who made the presentation on the plans of the Department and the Chief Financial Officer made the briefing on the budget.

2.1.2. The mandate of the DHA is derived from the Constitution and various acts of Parliament and policy documents.  The DG went through the vision, mission, mandate and values of the DHA, which remain consistent with previous years.

2.1.3. The DG indicated that the DHA’s services are divided into two broad categories: civic services and immigration services. These ensure the efficient determination and safeguarding of the identity and status of citizens and foreigners, and provide for the management of immigration to ensure security, promote development and fulfil South Africa’s international obligations.

2.1.4. The Civic Affairs branch is the custodian of the National Population Register (NPR), which contains the records of all citizens and permanent residents, including changes in status such as marriage and death. Services to citizens include issuing enabling documents after their status is confirmed, such as birth and death certificates and travel documents. The verification of identity is a service that is also rendered to all government institutions, banks and other private sector institutions. Transfers to the GPW and IEC also form part of the Citizen Affairs budget sub-programme.

2.1.5. The Immigration Affairs branch determines the status and identity of foreigners, regulates immigration through the permitting and movement control systems and provides consular services abroad. Immigration officers are present at ports of entry and regional offices in provinces. The branch also has an inspectorate function which is responsible for enforcing the Immigration Act (No. 13 of 2002) and its Regulations. Immigration Affairs is also responsible for processing and determining the status of asylum seekers and refugees in terms of the Refugee Act (No. 13 of 1998) and operates centres nationally in this regard.

 

2.2. DHA Contribution to the National Development Plan and to the Medium Term Strategic Framework 2014 to 2019

2.2.1. National Development Plan (NDP)

2.2.1.1. The DHA contribute to the National Development Plan (NDP) by facilitating the acquisition of the critical skills needed for the economy. The NDP’s major focus is to confront the triple challenge of poverty, inequality and unemployment by achieving higher growth rates for the economy.

2.2.1.2. The economy can only grow if the strategy is led by a capable state staffed by professionals; corruption is reduced; and the majority of citizens feel part of the development plan.

2.2.1.3. The DHA plays a critical role in enabling the regional development by working with Southern African Development Committee (SADC) countries to establish efficient, secure and managed migration.

2.2.1.4. The inclusion of all citizens in democracy and development is enabled by providing them with a status and an identity to access rights and services.

2.2.1.5. The DHA’s Modernisation Programme will reduce fraud and cost of doing business by enabling e-government and facilitate more investment to grow the economy. Despite the limited funding to the DHA; the Smart ID Card and new passports have transitioned to using fully digital application processes at 178 offices and at 12 branches of the four major banks. The partnership with banks enables citizens to apply on-line for a Smart ID Cards and passports; pay for such documents via internet banking; schedule an appointment to take fingerprints and photos; and collect the documents. The DHA is engaging the banking sector as part of a public-private partnership with a view to roll out to more branches. The Smart ID Cards is replacing the Green Identity Book as form of identification and the DHA has issued 6 million Smart ID Cards since 2013.

2.2.1.6. The location of the DHA within the security cluster in March 2016 is a good step towards operating in a highly secure environment to ensure that the nation is safe and secure.

 

2.3.1. The Medium Term Strategic Framework (MTSF) 2014-2019

2.3.1.1. MTSF priorities are based on the electoral mandate including the commitment to implement the NDP. The Electoral Mandate is: decent work and sustainable livelihoods; education; health; rural development, food security and land reform and fight against crime and corruption.

2.3.1.2. The DG indicated that the DHA contributes to five of the 14 government outcomes which are outcome 3. All people in South Africa are and feel safe; outcome 4. Decent employment through inclusive growth; outcome 12. An efficient, effective and development oriented public service; outcome 13: Social protection and outcome 14: Social cohesion and nation building.

The DHA commitments in the MTSF 2014 to 2019 in support of the MTSF outcomes will focus on the following:

• The Border Management Authority (BMA) is established and operational by 2017/18 and the Integrated Border Management Strategy is developed and implemented to defend, protect, secure, and to ensure well management borders by 2018/19. The BMA will be responsible for the border law enforcement in the border environment and at ports of entry. The final White Paper on was submitted to Cabinet in April 2017. This is a critical step towards promoting national security and development and in minimising risks to the country.
• Seventy-four percent or 810 0000 births are registered within 30 days of birth by 2018/19.
• The National Identity System (NIS) should be operational by 2019/20.
• All designated ports of entry are equipped with the biometric systems by 2018/19.
• The Immigration and Refugees Bills are submitted to Parliament by 2018/19 so that they are aligned to the White Paper on International Migration.
• The DHA will ensure that three (3) Premium Visa and Permit Service Centres for Corporate Account clients and their families are opened. A Premium Visa and Permit Service Centre has been established in Sandton, in conjunction with the Gauteng Growth and Development Agency. Additional centres will be established in Pretoria, Cape Town and Durban. The Centres will offer a ‘one-stop-shop’ to potential investors. This is in line with the NDP to ensure that critical skills are attracted and retained in the country.
• The DHA Contact Centre was established in 2015/16. The Contact Centres are different from the Call Centre in that applicants are able to receive real updates on their application and Contact Centre personnel are able to assist in processing applications across the services of the DHA.
• The DHA contributes to social cohesion through providing enabling documents to citizens, migrants and vulnerable groups such as refugees.

2.4.1. The Department of Home Affairs 2016/2017 Annual Performance Plan

2.4.1.1. The DG made the presentation and he indicated that the DHA has three budget programmes namely, Administration, Services to citizens and Immigration Services. The total number of targets for 2017/18 compared to 2016/17 have been reduced to 28. The Department has two main broad categories, namely Civic Services and Immigration Services which together ensure efficient determination and safeguarding of the identity and status of the citizens and foreigners; and provide for the management of identity, civil status and immigration to ensure security, promote development and fulfil South Africa’s international obligations.

Programmes and number of targets of the DHA

Programme	2016/17 Number of targets	2017/18 Number of targets
1.Administration	19	13
2.Services to Citizens	5	5
3.Immingration Services (including BMA)	8	10
Total	32	28

 

2.4.1.2. The DG indicated that the Refugees and Immigration Bills would be reviewed in order to align them with the White Paper on International Migration. The White Paper on International Migration was finalised in April 2017. A related road map will be approved by the Minister of Home Affairs in 2017/18.

2.4.1.3. It was indicated that the DHA will introduce improved mobile offices because some DHA offices cannot be adapted for processing of Live Capture document applications in the process of replacing the Green ID Books with the Smart ID Cards.

2.4.1.4. The DHA will also introduce the trusted travellers programme in 2017/18 which would remove the necessity to stamp passports at borders such as Maseru Bridge for pre-approved travellers. The new National Identification Information System (NIIS) would have the capability of managing information of the both nationals and foreign nationals and link with other government departments.

2.4.1.5. The DHA collects revenue and deposits it in the National Revenue Fund. It would be important that the revenue collected should be reinvested in the department. Currently, the revenue is only partially returned to the DHA towards the end of the financial year.

2.4.1.6. Birth registration is still a challenge and the he DHA will be receiving a report from the Department of Planning, Monitoring and Evaluation on the issue. There are 178 of 400 offices which have been move d to electronic application processes. The DHA reported that it was puzzling that the South African Social Security Agency (SASSA) gives grants to mothers without birth certificates and the Department of Education is able to register children without births certificates. The members of the Committee requested that the DHA should conduct further outreach programmes on the need for registration within 30 days after births. The DHA should put up more posters at health facilities to raise awareness with regard to the registration of births.

2.4.1.7. In 2017/18 there will be more time spent on drafting the Immigration and Refugees Bill to be aligned with the White Paper. The management of foreign nationals would now not only be a matter of the DHA but the whole of government and the society.

2.4.1.8. The DG indicated that DHA needed to get out of being required to use the State Information Technology Agency (SITA) and/or get another service provider. The DHA is also dependent on the Department of Public Works for office accommodation. This dependency on SITA and DPW hampers DHA service delivery.

2.4.1.9. The DHA needs to convert 200 million records and it has only received R10 million to do so, which would only be sufficient to convert 5 million records. If the DHA needs to fight corruption properly, all documents must be digitised.

2.4.1.10. The DG indicated that the Government Printers’ Bill has been finalised and it would be going to Cabinet for approval. The Bill will be submitted to Parliament in 2017/18. The Government Printing Works (GPW) will provide more information on this when they brief the Committee on their APP.

2.4.1.11. The DG reported that the DHA will conduct 100 law enforcement operations in 2017/18. The DHA will also automate the amendments and citizenship application processes. The DHA will ensure that 70 percent of disciplinary cases are finalised satisfactorily.

2.4.1.12. The infrastructure at Musina Refugees Reception Office will be improved and renovations done. The zoning of the land at the Lebombo border for the construction of a Refugee Reception Office (RRO) has been done. The DHA will start with the process of constructing this RROs closer to the border.

2.4.1.13. The DHA will maintain its vacancy rate below 10 percent. In 2016/17, the DHA did not fill any vacant positions as directed by the National Treasury. The department wants to ensure that there is no office without an office manager. The interns who served an internship in 2016/17 will be given an opportunity to fill the vacant funded posts. It is important to note that these interns will be employed based on merit. They will have to apply like everybody else when the positions are advertised. There are approximately 502 posts that will be advertised in 2017/18.

3. THE ELECTORAL COMMISSION OF SOUTH AFRICA (IEC)

3.1. The Chairperson of the Electoral Commission of South Africa led the delegation from the IEC. The Minister of Home Affairs was also in attendance of the meeting.  Both the Minister of Home Affairs and the IEC Chairperson made opening remarks. The Deputy CEO for Corporate Services made the presentation on the Annual Performance Plan and budget and the report on the 2016 was done by the Acting Chief Electoral Officer.

3.2. The IEC Chairperson indicated that the contract of the Chief Electoral Officer ended in February 2017 and it was extended by a month, while negotiating with him for another five-year term which he decided not to renew. The Deputy CEO was requested to act as the Chief Electoral Officer.

3.3. In terms of the Constitution of the Republic of South Africa, the Electoral Commission must manage elections of national, provincial and municipal bodies in accordance with legislation; ensure that those elections are free and fair; and declare the results of those elections within a period that is prescribed by national legislation and that is as short as reasonably possible.

3.4. The Deputy CEO indicated that the IEC has three programmes; namely; Administration, Electoral Operations and Outreach. These have three Strategic Outcome-oriented Goals listed below with the number of targets:

Programme	Budget 2017/18 R000s	Strategic Outcome-oriented Goal	Number of targets
Programme 1: Administration	555 013	Strengthening governance, institutional excellence, professionalism and enabling business processes at all levels of the organisation.	11
Programme 2: Electoral Operations	501 302	Achieving pre-eminence in the area of managing elections and referenda, including the strengthening of a cooperative relationship with political parties.	7
Programme 3: Outreach	116 498	Strengthening electoral democracy.	5
Total	1 172 813		23

 

3.5. The Committee was concerned that in one of the targets, the IEC aimed for an unqualified audit instead of a clean audit opinion. Although an explanation was given that the complexities of elections logistics made this almost impossible; the Committee indicated that the IEC should, nonetheless, strive for a clean audit.

3.6. The IEC Chairperson indicated that the matter of inclusion of addresses in the voters’ roll was not budgeted for. The IEC requested an amount of R145 million from National Treasury, but was only given R71 million for this purpose. There were approximately 16 million households in the country that did not have addresses for the 2016 Local Government elections and the number has been brought down to approximately 6 million. There are households that do not have addresses at all and others have incomplete addresses. The addresses should ultimately be linked to the Voting District through Geo-Locations (GPS). It was reported that the IEC is on track in getting addresses despite the financial challenges.

3.7. Members of the Committee noted that the outreach programme is the least funded whilst it is very important to ensure free and fair elections as well as promoting the need for collection of addresses.

3.8. It was indicated how the seat allocation and seat calculation is done. The Committee was extremely concerned about illegal campaigning on the Election Day. There are political parties which would have tables and tents close to the voting stations. Legislation should have repercussions for those campaigning on Election Day and spreading false news, especially by electronic means. The IEC explained that it would be difficult to implement because such fake news often originates outside South Africa.

4. THE GOVERNMENT PRINTING WORKS (GPW)

The Acting Chief Executive Officer made a presentation of the Budget and Annual Performance plan of the GPW to the Committee. The Minister of Home Affairs also attended and made contributions at the meeting.

4.1. The Government Printing Works is South Africa’s state security printer with experience spanning more than 125 years. The major clients are the Department of Home Affairs (DHA), Department of Justice, Department of Transport and National Treasury. The GPW prints DHA forms, birth certificates, license forms, court forms and Road Traffic Offences documents.

4.2. The GPW has Regional offices in the Eastern Cape, Northern Cape and Limpopo Province. GPW will also be printing gun licenses for the South African Police Service (SAPS) and it is in discussion with Swaziland and Lesotho to print their security documents. GPW is the only security printer on the African continent and it has an opportunity to expand its work in the region.

4.3. The GPW accounts to the Executive Authority of the DHA and its Chief Executive Officer is the accounting officer. Government has 14 national outcomes and the GPW contributes to three of the 14 outcomes which are outcome 6: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship, outcome 11: Create a better South Africa and contribute to a better and safer Africa and World and outcome 12: A skilled and capable workforce to support an inclusive growth path.

4.4. GPW was established as a Government Component on 9 October 2009. The GPW is preparing to become a State-Own Company (SOC). GPW is repositioning itself to assist the DHA become a security cluster department. It is the responsibility of GPW that security documents are administered securely and there is as little human interference when these documents are printed.

4.5. GPW has three strategic outcome orientated goals which are to:

• Develop the Government Component to become a State-Own Company,
• Optimise processes and facilities
• A developed workforce

 

4.6. The State Printers Bill has been separated into the conversion of the GPW into SOC and regulating security printing in South Africa. There are two Bills that are being prepared to be tabled in Parliament. The drafting of the Bills is done in conjunction with the DHA. The SOC Bill will be tabled in August 2017; while the Security Printing Bill will follow the same process as the SOC Bill before introduction to Parliament.

4.6. The GPW is self-funded for the past four years (it does not receive funding from National Treasury). For the 2015/16 financial year, revenue generated was R1.138 billion. Revenue above costs has significantly grown (12%) from previous years and the budget for 2017/18 is R1.45 billion. The main revenue drivers are printing of passports, Smart ID Cards and A4 Bond Paper.

4.7. It was reported that the construction of Pavilion 3 will be completed at the end of 2017 at the cost of R257 million. Pavilion 3 will be used to print Smart ID Cards, examination papers and other security documents. The GPW Head Office is also being renovated at a cost of R49 million and the planned completion is December 2017/January 2018. GPW will not able to acquire new machinery until the completion of the buildings.

4.9. The e-gazette was launched in 2012 and customers apply for the publication of the gazettes online. This has also saved GPW the cost of printing tonnes of paper of gazettes that it used to send to its customers at little to no profit to the GPW. Customers print the pages that they want themselves or request specific gazettes from the GPW.

4.10. The GPW has the following priorities for 2017/18:

• Manage the SOC conversion process until is approved by Cabinet and Parliament.
• Continue to implement the MTEF Strategic Plan and APP commitments.
• Implement the asset capitalisation and optimisation of facilities programme.
• Ensure return on investment and sound financial management and sustainability.
• The long term vision is that it becomes the State Security printer of choice in Southern African Region and African continent.
• Capacitate and train the workforce to meet the market and client demands.

 

4.11. The Portfolio Committee on Home Affairs supported the conversion of GPW into a SOC.

 

5. BUDGET OF THE DEPARTMENT

5.1. The Chief Financial Officer (CFO) of the DHA presented on the budget. The total budget of the DHA is R7.167 billion for the 2016/17 financial year. This includes transfers to the IEC.

5.2. The CFO indicated that the budget for the DHA is R7.055 billion. The allocation to citizen affairs will increase for 2018/19 because of the allocation to the Electoral Commission of South Africa (IEC) for elections that will take place in 2018/19 financial year. The average increase to the Compensation to Employees is by 7.1 percent over the medium term budget. It was responded in relation to a questions that the allocation to BMA will be requested in August 2017 in the Medium Term Budget Policy Statement.

Table: Budget per programme

Programme	Budget
R million	2016/17	2017/18
Programme 1: Administration	2 222.9	2 259.5
Programme 2: Citizen Affairs	3 901.6	3 574.7
Programme 3: Immigration	1 042.7	1 221.3
Total	7 167.2	7 055.5

5.3. Over the MTEF period, spending on the Compensation on Compensation of employees’ (CoE) budget and goods and services will decrease due to fiscal constraints.

5.4. In 2016/17 to 2018/19, the MTEF allocation has reduced the Compensation of employees’ budget by R254 million for 2017/18 and R397 million for 2018/19. The allocation to CoE for 2017/18 to 2018/19 has further been reduced by R56 million for 2017/18, R37.3 million for 2018/19 and R39.4 million for 2019/20.

5.5. The goods and services budget has been reduced by R28.2 million for 2016/17 and R30.6 million for 2018/19 which would be taken from the Lindela Detention Centre.  The goods and services is further reduced by R20.3 million for 2017/18, R18.3 million for 2018/19 and R23.4 million for 2019/20. These severe austerity measures have necessitated the DHA to review its strategic and operational planning and budget. As a result, services delivery has been affected.

The following have been identified as the main cost drivers at DHA:

• The Modernisation Programme including maintenance costs and upgrades
• The contractual obligations such as the Advanced Passenger Processing system
• Increases in contractual obligations due to weakness of the Rand
• Deportations
• Leases
• The implantation of the Immigration White Paper
• Deployment of officials abroad
• Payment for the use of data lines

 

6. COMMITTEE OBSERVATIONS

The Committee appreciated the presentations made by the DHA, IEC and GPW and engaged with them making the following observations:

6.1. The Department of Home Affairs (DHA).

6.1. 1The requirement for registration of births within 30 days, together with its benefits, has not been publicised enough to the public by the DHA.

6.1. 2The Department of Education continues to enrol children at school without birth certificates and the South African Social Security Agency (SASSA) gives children grants without birth certificates.

6.1. 3There are people who still have identity numbers blocked by the DHA.

6.1. 4There is a frequent breakdown in connectivity affecting service delivery at Home Affairs offices. The DHA depends on the State Information Technology Agency (SITA) for connectivity at its offices.

6.1. 5A significant part of the challenges relating to DHA office accommodation, particularly in remote areas, relates to the limitations of the Department of Public Works (DPW) as well as budgetary constraints.

6.1. 6There are 200 million records that need to be digitised in order to assist the DHA in fighting fraud and corruption.

6.1. 7The payment requirement to suppliers within 30 days by the DHA is not yet fully compliant.

6.1. 8The White Paper on International Migration needs engagement on an intergovernmental and regional level to facilitate its implementation.

6.1. 9There has been a negative impact on the service delivery by the DHA due to the Treasury moratorium on filling of vacancies.

6.1. 10The DHA has piloted a project of partnering with banks for the delivery of passports and smart ID cards.

6.1. 11The DHA has not set a clean audit as an annual target.

 

6.2. The Electoral Commission of South Africa (IEC).

6.2. 1The Committee noted that the IEC will be preparing for the 2019 Provincial and National Elections.

6.2. 2The IEC has planned for an unqualified audit target in their APP for 2017/18 and the outer years.

6.2. 3On election days, there are political parties that continue to campaign, particularly on electronic and print media.

6.2. 4The IEC is still facing challenges with the proper procurement of goods and services.

6.2. 5The IEC is making progress on the gathering of address on the voter’s roll despite being significantly underfunded.

 

6.3. The Government Printing Works (GPW).

6.3. 1The GPW has planned to maintain an unqualified audit opinion for 2017/18 and the outer years.

6.3. 2The GPW facility is a National Key Point and security guards protecting its property have not been vetted.

6.3. 3GPW is losing artisans and skilled staff to the private sector due to salary disparities.

6.3. 4The construction of the Pavilion 3 will be completed in 2017.

6.3. 5The staff complement at GPW is only 563, which might be problematic if it gets more work in the African continent to meet the demand.

6.3. 6The GPW is yet to appoint a full time new CEO.

 

7. RECOMMENDATIONS

Based on the continuous engagement with the Department of Home Affairs, the Government Printing Works and the Electoral Commission, the Committee recommends the following:

 

7.1. The Department of Home Affairs (DHA).

7.1. 1The DHA should conduct more outreach programmes such as posters at health facilities, training clinic staff and seeking out the contact details of parents to promote registration within 30 days of birth.

7.1. 2The DHA should engage the Department of Education (DoE) and SASSA on the documentation of children at schools and  for child support grants respectively.

7.1. 3The DHA should be given consideration for an exemption from using SITA.

7.1. 4The DHA and DPW should continuously engage to resolve the issue of office and residential accommodation.

7.1. 5The DHA should motivate for more funding to National Treasury for digitisation of its remaining 195 million records in order to curb corruption.

7.1. 6The DHA should meet the requirement to pay all suppliers within 30 days of receipt of invoices.

7.1. 7The approved Migration White Paper, must be engaged on an intergovernmental and regional level to provide a policy framework for the drafting of new immigration and refugee legislation.

7.1. 8Given the broad scope of its services and the impact on service delivery, the DHA need to continue to engage Treasury on exemptions from the moratorium on filling of vacancies.

7.1. 9The DHA should strive towards a clean audit in its annual plans.

 

7.2. The Electoral Commission of South Africa (IEC).

7.2. 1The IEC should table amendments to the Electoral Act as soon as possible in preparations for the 2019 Provincial and National Elections.

7.2. 2The IEC should strive for a clean audit in their Annual Performance Plans.

7.2. 3The IEC should consider amending legislation to include repercussions and improve the definition of campaigning done on voting days; particularly through various media.

7.2. 4The IEC need to address its procurement challenges prior to the tabling of its Annual Report.

7.2. 5The IEC should be allocated sufficient funding to complete the gathering of addresses on the voter’s roll prior to the court appointed date of the next election.

 

7.3. The Government Printing Works (GPW).

7.3. 1GPW should strive to receive a clean audit for 2017/18 and the outer years.

7.3. 2GPW should vet all personnel who work at its premises.

7.3. 3The private security company utilised by the GPW should be vetted.

7.3. 4The Bill to convert GPW into a SOC should be tabled to Parliament as soon as the consultation process has been completed.

7.3. 5The asset recapitalisation by GPW should commence as soon as possible prior to facilities being completed due to the time taken for the process of procuring assets.

7.3. 6GPW should ensure that all 105 posts are filled in the current financial year.

7.3. 7The GPW must appoint a suitable CEO as a matter of urgency to make the transition to a well governed State Owned Company.

 

8. The Committee recommends that the House approves the 2017/18 Budget of the Department of the Home Affairs.

 

Report to be considered.