ATC181017: Budget Review and Recommendation Report of the Portfolio Committee on Police on the 2017/18 Annual Report of the South African Police Service (Saps), dated 17 October 2018

Police

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2017/18 ANNUAL REPORT OF THE SOUTH AFRICAN POLICE SERVICE (SAPS), DATED 17 OCTOBER 2018.
 

The Portfolio Committee on Police, having considered the financial and service delivery performance of the South African Police Services (SAPS) for the 2017/18 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 (BRRRs) in October of each year, containing recommendations relating to funding allocations for departments and other institutions that account to them. The BRRRs 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) 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 mandate 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 South African Police Service (SAPS), the Civilian Secretariat for Police Service (CSPS), the Independent Police Investigative Directorate (IPID) and the Private Security Industry Regulatory Authority (PSIRA);
• 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 Department through regular oversight meetings during the 2017/18 financial year and has tracked progress during the current financial year (2018/19). The Committee has considered quarterly expenditure reports for 2017/18 and for the first quarter of the 2018/19 financial year.

 

The Committee was briefed on the annual performance for 2017/18 by the Department on 09 October 2018. The Committee also met with the Auditor-General and SAPS Audit Committee on the audit outcomes on 09 October 2018. 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 2018/19.

 

This report is structured as follows:

 

• Section 1: Mandate of the Committee. This sections 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: Overview of key policy focus areas. This section includes the policy determinations of the National Development Plan (NDP), priorities stated by the President during his State of the Nation Address (SONA), key departmental policy areas and key priorities of the Portfolio Committee on Police for the 2017/18 financial year. 
• Section 3: Report of the Auditor General of SA. This section provides the key audit findings made by the Office of the AGSA. 
• Section 4: Governance. This section provides an overview of the governance structures of the Department, including risk management, fraud, corruption and consequence management, minimizing conflicts of interest, internal audit and the Audit Committee.  
• Section 5: Financial overview. This section provides an overview of the Departmental expenditure, including irregular expenditure, fruitless and wasteful expenditure and contingent liabilities.   
• Section 6: Performance overview. This section provides an overview of Departmental performance on predetermined key performance indicators and targets.
• Section 7: Committee observations: This section provides a summary of the observations made by the Committee during the 2017/18 Annual Report hearings.
• Section 8: Recommendations. This section contains the recommendations made by the Committee.
• Section 9: Reporting requirements. This section provides a summary of the reporting requirement of the Department for written responses and feedback reports.  
• Section 10: Conclusion.

 

1. Overview of the key policy focus areas

 

1. National Development Plan (NDP)

 

The SAPS in its contribution to the National Development Plan focused on four key pillars for the implementation of the National Development Plan (NDP). These pillars are listed in the Annual Report and Annual Performance Plan as follows:

 

1. Strengthening the Criminal Justice System;
2. Professionalisation of the Police;
3. Demilitarisation of the Police; and
4. Building safety using an integrated approach.

 

The implementation of the country’s Vision for 2030 (NDP) is captured in Government’s planning, budgeting and performance reporting cycle, as reflected in the Medium-Term Strategic Framework (MTSF), which extends from 2014 to 2019. The MTSF includes the following key targets towards the realisation of a South Africa in which all people are and feel safe:

1)         A reduction in the number of reported contact crimes;

2)         An increase in the proportion of citizens feeling safe when walking alone during the         day or at night, as measured in official surveys

3)         An increase in the proportion of households that are satisfied with police services in        their area, and with the way courts deal with the perpetrators of crime;

4)         Improvement in citizens’ perceptions of levels of crime and progress in reducing crime,   as measured in official surveys; and

5)         An improvement in South Africa’s ranking on the Transparency International                     Perception Index.

 

1. State of the Nation Address (SONA)

 

The President touched on various important aspects within the policing sector, relating directly to the National Development Plan (NDP) and Medium Term Strategic Framework (MTSF) 2014-2019. The following points were made:

• The President noted that fighting crime is an apex priority of Government. 
• The police will increase visible policing, based on the successes achieved during the Safer Festive Season deployments.
• The President further announced that the police will utilise specialised capabilities, including the Tactical Response Team (TRT) and National Intervention Units (NIUs) to assist the visible policing division in addressing problematic high-crime areas.
• The President highlighted the need for communities to build stronger partnerships with the police in the fight against crime and to ensure safer communities.  
• The President indicated that other measures to fight crime nationally will include the establishment of Specialised Units, focusing on drug-related crime, taxi violence and firearms and the enhanced utilisation of investigative aids such as forensic leads.
• The Police will also enhance the utilisation of the DNA Database in the identification of suspects.
• The President welcomed the decline in rhino poaching incidents since October 2015, which is for the first time in a decade. The decrease was attributed to the intensive joint operations by law enforcement agencies.

 

1. Key priority areas

 

The key priority of the Department during 2017/18 remains the implementation of the Back-to Basics Approach across the organisation to improve service delivery and professional conduct, which is also a key requirement of the NDP.

 

The Back-to-Basics Approach was introduced during the 2015/16 financial year and is based on the premise that every police member does “the right things right, every time”. This approach has been endorsed by all role-players, including the Portfolio Committee on Police. The Back-to Basics Approach on policing comprises nine (9) key dimensions. Implementing the approach is expected to improve the SAPS’s performance with regard to the prevention, detection and investigation of crime. They are:

1. The transformation of the police service;
2. Compliance with the fundamental principles of policing;
3. A culture of performance management and accountability;
4. Enhanced police visibility;
5. Thorough and responsive investigation of every crime reported;
6. Efficient use of resources in support of crime investigation;
7. Optimal use of crime intelligence in support of proactive and reactive policing;
8. Targeted and informed deployment of operational resources; and
9. Collaborative and consultative approach to policing.

 

During the previous financial year, the White Paper on Safety and Security and the White Paper on Policing were adopted by Cabinet and the Department will start implementation. The policy papers are based on the following six (6) pillars and will form the focus area for policing, safety and security going forward:

• An effective criminal justice system;
• Early intervention to prevent crime;
• Victim support;
• Effective integrated service delivery for safety, security and violence and crime preventions;
• Safety through environmental design; and 
• Active public and community participation.

 

1. Key priorities of the Portfolio Committee on Police

 

Subsequent to the 2017/18 budget hearings, the Portfolio Committee highlighted 10 priorities that the newly appointed Minister and Deputy Minister of Police should focus on, which include:

1. Stabilise the SAPS and Hawks national leadership.
2. Expeditious and thorough appointment of permanent and suitably qualified people to head the Crime Intelligence and Detective Services.
3. Urgent implementation of the SAPS recommendations contained in the National Development Plan (NDP).
4. Speedy tabling of the SAPS Amendment Bill to Parliament.
5. Implementation of the Farlam Commission recommendations.
6. Implementation of digital policing as a gateway to the future, making it easier for the public to contact the police.
7. Fast-tracking the transfer of the Community Police Forums to the Civilian Secretariat for Policing, with the appropriate funding.
8. Implementation of a new strategy to deal with illegal firearms and dangerous weapons.
9. Ensure improved safety of police officers by introducing compulsory body cams for all front-line officers and related technology.
10. Continuation of a stringent, clearly visible anti-corruption strategy in SAPS, coupled with adequate funding of the Independent Police Investigative Directorate.

 

1. REPORT OF THE AUDITOR-GENERAL OF SOUTH AFRICA (AGSA)

 

The Audit Report of the AGSA is the most important independent assessment of the quality of financial statements, including all its disclosures.

 

The SAPS received a second consecutive qualified audit from the AGSA for the 2017/18 financial year. The opinion was based on the following:

 

• Irregular expenditure: The Department did not include certain of the required information on irregular expenditure in the notes to the financial statements (note 24), as required by section 40(3)(i) of the PFMA. Payments made in contravention of the supply chain management requirements were not adequately and completely disclosed, resulting in irregular expenditure being understated by R968 million (2016-17: R284 million).

 

In addition, the Department also did not evaluate the population for similar instances of non-compliance based on the factors as communicated. Consequently, the AGSA was unable to determine the full extent of the irregular expenditure as it was impractical to do so due to management not re-visiting the population to quantify the extent of the irregular expenditure.

 

• Movable tangible assets: The AGSA was unable to obtain sufficient appropriate audit evidence to substantiate that other fixed structures within immovable tangible capital assets were completely disclosed in the financial statements (note 31). The processes that produced the asset register were not reliable. Furthermore, the process of compiling the asset register with items which related to current year, was still ongoing at the date of the report. The AGSA was unable to confirm the completeness of these assets by alternative means. Consequently, the AGSA was unable to determine whether any adjustments were necessary to immovable tangible capital assets stated at R3,232 billion (2016-17: R3,116 billion) in note 31 to the financial statements.

 

The AGSA made the following material findings on the usefulness and reliability of reported performance information:

 

Programme 2: Visible Policing (9 indicators)

• Percentage of applications for new firearm licenses finalised within 90 days (repeat finding from 2015/16);
• Average national police reaction time to Alpha, Bravo and Charlie complaints (repeat finding from 2011/12);
• Number of stolen/lost and illegal firearms recovered (repeat finding from 2011/12);
• Number of  SAPS owned firearms reported as stolen/lost (New indicator);
• Number of identifiable stolen/lost SAPS firearms recovered (New indicator);
• Number of stolen/robbed vehicles recovered (New indicator);
• Number of rural and rural/urban mixed police stations implementing the set criteria of the four pillars of the Rural Safety Strategy (repeat finding from 2016/17); and
• Percentage of School Safety Programmes implemented at identified schools (repeat finding from 2013/14).

 

Programme 3: Detective Services

• Detection rate for cybercrime-related case charges (DPCI) (repeat finding from 2016/17);
• Detection rate for serious commercial crime-related charges (DPCI) (repeat finding from 2015/16);
• Percentage of trial-ready case dockets for serious commercial-related crime charges (DPCI) (repeat finding from 2015/16);
• Percentage of results of trial updated in respect of a guilty verdict (New).

 

Programme 4: Crime Intelligence

This is the first year in which the AGSA audited the reported achievement on targets for the Crime Intelligence Programme. As such, there is no repeat findings within the programme. The AGSA stated that management corrected only some of the misstatements. Those that were not corrected are reported below:

• Number of network operations conducted;
• Number of threat and risk assessment reports generated for pro-active policing;
• Number of early warning reports generated for pro-active policing;
• Percentage of pro-active intelligence reports that were operationalised; and
• Percentage of physical security assessments finalised as per the Physical Security Annual Assurance Schedule.

 

In terms of compliance with legislation, the AGSA made the following material findings on non-compliance with specific matters in key legislation:

 

Annual financial statements and annual performance report

• Material misstatements identified were not adequately corrected and/or the supporting records could not be provided, which resulted in the financial statements receiving a qualified opinion.

 

Procurement and contract management

• Some of the goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations as required by Treasury regulation 16A6.1.

 

• Some of the goods and services of a transaction value above R500 000 were procured without inviting competitive bids and deviations were approved by the accounting officer, but it was practical to invite competitive bids as required by Treasury regulations 16A6.1 and 16A6.4. Similar non-compliance was also reported in the prior year.

 

• In some instance persons in service of the Department who had a private or business interest in quotations awarded by the Department failed to disclose such interest, as required by Treasury regulation 16A8.4 and the Public Service regulations 18(1) and/or (2). Similar non-compliance was reported in the previous year and disciplinary action was not taken against the officials involved.

 

• In some instances, persons in service of the Department whose close family members, partners or associates had a private or business interest in quotations awarded by the Department failed to disclose such interest, as required by Treasury regulation 16A8.4. Similar non-compliance was reported in the previous year and disciplinary action was not always taken against the officials involved.

 

• Some of the contracts were extended or modified without the approval of a properly delegated official as required by section 44 of the PFMA and Treasury regulations 8.1 and 8.2.

 

Expenditure management

• Effective and appropriate steps were not taken to prevent irregular expenditure as required by section 38(1)(c)(ii) of the PFMA and Treasury regulation 9.1.1. As reported in the basis for qualified opinion, the full extent of the irregular expenditure could not be quantified. The majority of the irregular expenditure disclosed in the financial statements was caused by competitive bidding process not being followed as required by Treasury regulations.

 

• Effective internal controls were not in place for the approval and processing of payments as required by Treasury regulation 8.1.1. Although supply chain delegations were in place, related payments were made without financial delegations.

 

Consequence management

• In some instances, disciplinary steps were not taken against some of the officials who had incurred and permitted irregular expenditure as required by section 38(1)(h)(iii) of the PFMA. There were no investigations conducted and/ or finalised on these cases by management and some of these cases had been carried forward from the prior years.

 

• In some instances, disciplinary steps were not taken against some of the officials who had incurred or permitted fruitless and wasteful expenditure as required by section 38(1)(h)(iii) of the PFMA. Similarly, there were no investigations conducted and/ or finalised on these cases by management and some of these cases had been carried forward from the prior years.

 

Leadership

• Leadership did not take the appropriate action in relation to irregular expenditure incurred by the Department resulting in a lack of consequences for certain transgressions in contravention of legislation related to supply chain management.

 

• The Department developed an action plan to address internal and external audit findings, but the appropriate level of management did not monitor adherence to the plan in a timely manner, resulting in certain repeat findings, especially related to reporting on performance information.

 

Financial and performance management

• The Department did not have a signed delegation of authority relating to financial delegations which should deal with processing of payments by providing for threshold values per designated level.

 

• Management did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting. Requested information relating to audit of compliance with legislation, financial statements and annual performance report was also provided by management on average after 19 days, despite the agreed to 5 days per the signed engagement letter.

 

• Senior management have been slow in implementing key controls and addressing risk areas related to performance information and financial statements which resulted in uncorrected material misstatements.

 

• Management did not adequately implement review and monitoring controls to prevent non-compliance with legislation, relating to supply chain management. The resultant irregular expenditure was also not fully disclosed.

 

The AGSA further indicated that various investigations relating to various instances of transgressions of supply chain management legislation in previous years. These investigations have been ongoing for several years with no indicated completion date and recommendations for implementation with regard to disciplinary and/ or criminal proceedings against transgressors.

 

1. GOVERNANCE

 

The combined assurance model seeks to combine internal and external oversight processes. During the course of the 2016/2017 and 2017/2018 financial years, the process of implementing a fully-fledged combined assurance model, as envisaged by the National Treasury (including certain risk principles), was delayed. This was due to certain changes within leadership, where the responsible persons involved, within this process, were rotated to other areas.

 

The SAPS Audit Committee found that except for Internal Audit and Management Intervention, other management assurance providers’ efforts were not engaged in the combined assurance model, but that a resolution was concluded in August 2018 to refine the process further and allocate the required resources and that the systems would be advanced.

 

The necessary level of success in preventing repeat and recurring findings was not achieved. This was mainly attributed to the fact that the Department did not perform proper root cause analysis of the underlying cause, which led to the internal and external audit finding. Furthermore, timely follow-up to monitor adherence to the plan was absent in many instances.

 

1. Risk Management

 

The 2017/18 Annual Performance Plan identified a number of risks that impact on the strategic and operational objectives and priorities. A key set of risks have been identified for mitigation over the MTSF period. The Department has re-established its National Enterprise Risk Management Committee (ERMC), after a lapse in governance associated with risk management. A Station Risk Response Plan has been developed for implementation in the 2017/18 financial year, which identifies the organisational controls that must be implemented for specific functionaries at police stations in order to prevent the identified strategic risks from occurring or mitigating their impact (should it occur).

 

The SAPS Audit Committee stated that more work has been done, such as the development of the Enterprise Risk Management (ERM) Strategy, an approved Risk Management Policy and the Annual ERM Implementation Plan, to get risk management processes within the SAPS to be at a level that will set risk management at the right standing within the organisation.

 

However, there are still a number of critical issues that requires more attention and a concerted effort from management, particularly the Accounting Officer, such as capacity building (i.e. in terms of the human resource and infrastructure) within the ERM environment and ERM Committee members at national and provincial level, the attendance of risk management committee meetings by the senior management and the composition of the ERM Committee, to ensure compliance with requirements of King IV and other best practices.

 

1. Fraud, corruption and consequence management 

 

The AGSA made several material findings on non-compliance with legislative prescripts and lack of consequence management in the 2017/18 financial year, as well as the previous financial year.

 

In compliance with Chapter 2 of the Public Service Regulations (2016), the SAPS established an Integrity Management Service (IMS), during 2016/17. During 2017/18, fraud and corruption related charges were brought against 315 members, which is a decrease against the 345 cases of the previous year. In 2016/17, the largest category of fraud and corruption was aiding an escapee (152 from a total of 345). This figure decreased significantly to 109 in 2017/18. Corruption was the largest contributor in 2017/18 with 113 cases. Of concern is the drastic increase in the number of cases involving defeating the ends of justice (46.9% increase) and bribery (66% increase).

 

The lack of consequence management is a key risk to the Department, especially irregular expenditure, which could be related to fraud and corruption. The Department sought a legal opinion which indicated that the real test is not when the misconduct occurred but when the employer became aware of the misconduct. If it was known to the employer for an extended period, i.e. anything beyond six months, such delay becomes problematic for the Department. The SAPS Audit Committee stated that consequence management needs to be taken to the next level, in order to ensure accountability.

 

1. Minimising conflict of interest

 

The Department appeared before the Standing Committee on Public Accounts (SCOPA) on 13 June 2017. During the meeting, it emerged that 23 active police officers had traded with the SAPS during the 2015/16 financial year. According to the AGSA, the SAPS has the highest number of civil servants doing business with the State. This practice was criminalised from 2017, through section 13(c) of the Public Service Regulations, 2016. The practice of officials doing business with the state was again raised by the AGSA during the 2017/18 financial year.

 

1. Internal Audit and Audit Committee

 

The Audit Committee comprises of the following members:

• Ms B Ngunjiri (External);
• Mr T Boltman (External);
• Mr JE van Heerden (External)(Chairperson);
• Mr M Mokwele (External); and
• Mr M Karedi (External). 

 

The findings of the Audit Committee are included deficiencies in the following areas:

• Risk management;
• Performance information management;
• Procurement and supply chain management;
• Contract management;
• Asset management; and
• Leadership stability.

 

During the presentation of the Audit Committee on 09 October 2018, the Audit Committee made the following recommendations:

1. Appointment of fulltime members to Audit Steering Committees at an appropriate executive level.
2. Request for National Treasury to allocate a representative to the Audit Committee.
3. The disciplinary hearing of the CFO should be finalised as soon as possible in order to bring about stability as far as financial internal control in concern.
4. Audit Committee awaits final internal audit reports on contract management and procurement.
5. Finalise the appointment contracts of all the members of the Audit Committee.
6. Finalise the orientation workshop as agreed to between AGSA and the Accounting Officer.
7. Arrange a follow-up meeting with National Treasury in order to agree on the way forward on current term contract based on special operational needs of SAPS.
8. Table a status report on the Network Assets project which was supposed to have been completed by 30 September 2018.
9. Annual Financial Statements and appropriate schedules should be tabled regularly to the Audit Committee in addition to current management reports.
10. Monitor the implementation of the Performance Management and Development System (consequence management) as required by the Department of Public Service and Administration (DPSA Circular 15 of 2017) implementation date of 1 April 2018.
11. The leadership of risk management should be capacitated with adequate resources.
12. Recommend an independent review of high level contracts prior to approval.

 

1. FINANCIAL OVERVIEW

 

1. Departmental receipts

 

The Department collected R677.686 million in revenue, which is R89.1 million more revenue than anticipated during the 2017/18 financial year. The positive deviation was most prominent in the sale of capital assets (deviation of R60.5 million). The revenue is surrendered to the National Revenue Fund and is largely derived from services rendered to the public (such as firearm license applications, photocopies of accident reports and statements), disposal of departmental assets at auctions, forfeits (as a result of criminal activities) and the recovery of debt raised.

 

• Sales of goods and services produced by the Department: The Department collected R333.1 million for the sale of goods and services rendered against an estimate of R312.4 million. The positive deviation of R20.6 million, is due to the increase of commission on insurance deductions on PERSAL (R2.5 million), the increase in police services rendered (R2.8 million), the increase in the sale of scrap (R2.8 million), as a result of more auctions for non-capital assets, as well as an increase of R10.4 million on boarding fees for residential accommodation.

 

• Fines, penalties and forfeits: The Department collected revenue of R31.3 million from fines, penalties and forfeits against an estimate of R18.5 million. The positive deviation of R12.8 million is mainly due to money forfeited to the State during the latter part of the financial year that was not foreseen.

 

• Sale of capital assets: The revenue collected amounted to R160.4 million against an estimate of R99.8 million. The positive deviation of R60.565 million, is mainly due to more auctions held on transport equipment, especially during the latter part of the reporting period.

 

• Financial transactions in assets and liabilities: The revenue collected amounted to R151.3 million against an estimate of R156.5 million. The negative deviation of R5.1 million is mainly due to lower levels of debt recovery related to previous financial years, than estimated.

 

1. Programme expenditure

 

The SAPS received a final appropriation of R86.761 billion during the 2017/18 financial year, of which the Department spent R86.6 billion which represents a spending rate of 99.8%. An amount of R156.080 million remained from the voted allocation for the financial year. The underspending was realised in the Administration, Visible Policing and Detective Services Programmes by R58 million, R13.6 million and R84.3 million respectively.

 

During the adjustments period, funds were reprioritised from the Administration and Visible Policing Programmes to the rest of the budget programmes, of which the Crime Intelligence received the largest amount (R158.7 million).   

 

Table 1: Departmental Allocation and expenditure for 2017/18

Programmes	Adjusted Appropriation	Virement	Final Appropriation	Actual Expenditure	Variance	% Variance
	R’000	R’000	R’000	R’000	R’000
Administration	18 636 413	(136 640)	18 500 073	18 441 973	58 100	-0.73%
Visible Policing	44 100 008	(153 713)	43 946 295	43 939 665	13 630	-0.35%
Detective Services	17 670 597	100 435	17 771 032	17 686 682	84 350	0.57%
Crime Intelligence	3 546 002	158 755	3 704 787	3 704 787	0	4.48%
Protection and Security Services	2 808 078	30 863	2 838 941	2 838 942	0	1.10%
Total	86 761 128	-	86 761 128	86 605 048	156 080	-

Source: 2017/18 SAPS Annual Report

 

In terms of expenditure management, the AGSA stated that the Department did not have a signed delegation of authority relating to financial delegations which should deal with processing of payments by providing for threshold values per designated level. This is a serious infringement and a leading cause for irregularities in supply chain management and challenges with contract management.

 

1. Programme 1: Administration

 

The Administration Programme received an Adjusted Appropriation of R18.636 billion and realised expenditure of R18.441 billion. As such, a net underspending of 0.73% was realised at year-end. A virement of R135.6 million was made to bring the Final Appropriation to R18.5 billion. The R58.1 million underspending was largely due to a decreased spending within the implementation of the Criminal Justice System (CJS) Seven Point Plan (more specifically the Integrated Justice System (IJS) projects), for hosting and network upgrades within the information technology environment. Capital works building projects could also not utilise funding available for such.

 

1. Programme 2: Visible Policing 

 

The Visible Policing Programme received an Adjusted Appropriation of R44.1 billion and realised expenditure of R43.94 billion at year end, which resulted in a net underspending of 0.35%. A virement of R153.7 million was made to the Programme, which resulted in a Final Appropriation of R43.946 billion and underspending of R13.6 million. The underspending was mainly as a result of lower spending on goods and services due to lower levels of spending on reimbursements to Public Works, which is based on invoices received in the facilities environment (devolved functions).

 

1. Programme 3: Detective Services 

 

The Detective Services Programme received an Adjusted Appropriation of R17.6 billion during the 2017/18 financial year and realised an expenditure of R17.686 billion at year-end, which was an overspending of 0.57%.  A virement of R100.4 million was affected, which brought the Programme’s Final Appropriation to R17.77 billion. Thereafter, the Programme showed under expenditure of R84.3 million.

 

1. Programme 4: Crime Intelligence 

 

The Programme received an Adjusted Appropriation of R3.546 billion and realised expenditure of R3.704 billion, which is an overspending of R158,7 million (4.48%). A virement to that amount was made, which brought the Final Appropriation to R3.704 billion. The overspending on the Crime Intelligence Programme was realised as a result of increased spending on compensation of employees and additional investment in transport assets within the payments of capital assets category. Compensation of employees contributed to almost 91% of expenditure in this Programme.

 

1. Programme 5: Protection and Security Services 

 

The Programme received an Adjusted Appropriation of R2.808 billion and realised spending of R2.838 billion, which is a net overspending of 1,10%. A virement of R30.8 million was made, which brought the Final Appropriation to R2.838 which resulted in a full spending of its budget.

 

1. Irregular expenditure

 

The Department incurred irregular expenditure of R320 000.00 in 2017/18. However, the opening balance for irregular expenditure was R20.7 million and the closing balance was R19.9 million at year-end. As such, the Department has significant historic irregular expenditure that has not been condoned.

 

The qualified audit opinion of the AGSA was in part based on understatements of irregular expenditure. The AGSA stated that the Department did not include certain of the required information on irregular expenditure in the financial note in the financial statements (note 24), as required by section 40(3)(i) of the PFMA.

 

The AGSA further stated that payments made in contravention of the supply chain management requirements were not adequately and completely disclosed, resulting in irregular expenditure being understated by R968 million (2016-17: R284 million).

 

Additionally, the AGSA stated that the Department also did not evaluate the population for similar instances of non-compliance based on the factors as communicated. Consequently, the AGSA was unable to determine the full extent of the irregular expenditure as it was impractical to do so due to management not re-visiting the population to quantify the extent of the irregular expenditure.   

 

1. Fruitless and wasteful expenditure

 

The Department incurred R290 thousand fruitless and wasteful expenditure during the 2017/18 financial year. However, the Department had an opening balance of R8.4 million and a closing balance of R7.9 million at year-end. This means that the Department has significant historical fruitless and wasteful expenditure unresolved. A greater effort should be made to clear the amounts related to prior financial years. A lack of consequence management and disciplinary steps taken against officials who incur or permit fruitless and wasteful expenditure has been continuously raised by the Committee, as well as the AGSA.

 

1. Contingent liabilities/ civil claims

 

In 2017/18, the Department allowed for R6.509 billion in contingent liabilities in terms of claims against the Department. A major spending pressure in the Administration Programme was more expenditure on civil claims than estimated.

 

As part of actions initiated to curb the increase of civil claims, a Management Intervention Project was initiated during 2016. The aim was to address the root causes, establish ownership and accountability for the prevention of incidents leading to civil claims.

 

The first phase of the project commenced, on 5 June 2016 and ended, on 30 April 2017. The project consisted of 107 activities, to address 38 root causes that were identified. Some of the root causes that lead to civil claims are as follows:

• Unlawful arrests, unlawful detention, damage to property and state property, assault and shooting incidents, due to a lack of compliance with rules and regulations, recruitment choices, poor training and poor command and control, as well as political condonation of police violence.
• Motor vehicle accidents (negligence), due to a lack of compliance with rules and regulations.
• Loss of state property, due to a lack of compliance with rules and regulations, resulting from lack of consequences, recruitment choices, poor training and poor command and control.

 

1. SERVICE DELIVERY AND PERFORMANCE OVERVIEW 2017/18

 

1. Overall performance

 

The overall performance of the Department improved from 74.5% achievement on performance targets in 2016/17 to 78.3% achievement in 2017/18. The improved performance in largely due to significant improvements in the Administration and Visible Policing Programmes. Achievements on performance targets declined in the Detective Services, Crime Intelligence and Protection and Security Services Programmes. Despite this decline in performance, the Crime Intelligence and Protection and Security Services Programmes recorded overspending on their budget allocations.

 

The achievement of performance indicators in the Administration Programme improved from 69% in 2017/18 to 79% in 2017/18. Achievement on performance indicators in the Visible Policing Programme improved from 69% in 2016/17 to 83% in 2017/18.

 

1. Programme 1: Administration

 

The achievement on performance indicators in the Administration Programme improved from 69% in 2017/18 to 79% in 2017/18.  The six performance indicators that underperformed and which targets were not achieved are of strategic performance to the Department. These were:

1. Complete 80% of planned maintenance; 
2. Reduce material findings of the AGSA by 50%;
3. Modernise and maintain 95% of identified ICT infrastructure sites;
4. Appointment of persons with disabilities;
5. Initiate 100% of recommendations made by the IPID; and
6. Finalise 90% of disciplinary cases relating to IPID investigations within 60 days.   

 

1. Supply Chain Management (SCM)

 

Public procurement is the responsibility of government to deliver goods, services and infrastructure to enable government departments to perform their functions effectively and efficiently. The AGSA and Audit Committee identified significant challenges in the SCM environment. The AGSA stated that payments made in contravention of the supply chain management requirements were not adequately and completely disclosed, resulting in irregular expenditure being understated by R968 million (2016-17: R284 million).

 

The Department of National Treasury published a review on the public sector SCM in 2015, which found various deficiencies with the current public sector SCM system. Treasury stated that many of the challenges found in the SCM environment stem from poor governance practices. Good governance ensures transparency, accountability, efficiency and upholding of the rule of law in all processes. National Treasury states that common governance and compliance failures result in corrupt activities. These include fronting, bribery, nepotism, collusion, cover quoting, conflicts of interest, forgery and tender splitting. These are largely the result of:

• Poor demand and procurement planning, resulting in large deviations and price escalations;
• Poor development of specifications;
• Dysfunctional bid committees;
• Weakly-skilled SCM practitioners; and
• Poor contract and supplier management.

 

 

 

 

1. Capital Works

 

During 2011/2012, the NMF approved the building of 30 new police stations in deep rural areas where there was no infrastructure previously. These police stations were to be built during the 2018/2019 – 2020/2021 period. Despite challenges and after negotiations with Government and non-government role players, sites were identified and cleared for the construction of these new police stations.

 

From the 30 new police stations, eight new police stations were prioritised for completion, during 2017/2018, but only one of the eight rural police stations, namely Mareetsane in the North West Province was completed. In October 2018, two stations are expected to be constructed, one in Pholile and Qhasa (Eastern Cape) and another completed in November 2018 in Muyexe (Limpopo).

 

During the 2017/2018 financial year, Facility Management did not have any interventions/contingency plan projects activated, due to the fact that all funds linked to possible under-expenditure, were transferred to various components for utilisation, within the SCM Division.

 

In 2017/18, the Department had an Adjusted Appropriation of R891.5 million for buildings. The Department effected an in-year shift of R1.2 million and a further virement of R324.6 million. In total, an amount of R325.8 million were moved away from the buildings budget allocation, which is 36.5% of the original adjusted appropriation. After the in-year shift and virement were made, the final appropriation was R565.5 million of which the Department spent 100%.

 

The national profile of the SAPS indicates that SA has 1 146 police stations compared to 1 144 stations in the previous financial year, which means that two new police stations were added to the national profile. Yet, only one police station was built during the 2017/18 financial year.

 

In 2017/18, the Department accepted donor funding from Salandra Ondernemings to the value of R23 000.00 for repairs to an existing cell block at Kleinmond Police Station. The repairs were executed by the donor and included the following:

• Repairs to warm water cylinder;
• Faulty electrical wires;
• Painting; and
• Plumbing repairs.

 

1. Human resource management

 

The 2017/18 organisational structure of the Department shows various vacancies in key areas, many of which have been addressed in the current financial year (2018/19). Key vacancies are that of the Divisional Commissioners for Technology Management Services, Divisional Commissioner for Forensic Services and Financial Management Services (CFO), both of whom are currently suspended and facing disciplinary action. Significant irregularities exist in these areas, as the qualified audit opinion is based on financial misstatements and SCM relating to technology projects. 

 

In 2017/18, the Department had a fixed establishment of 193 297 employees, of which 150 791 are SAPS Act employees and 42 506 are Public Service Act employees. Compared to the previous financial year, the Department’s fixed establishment decreased with 1 307 employees. Proportionally, the number of PSA employees have decreased more than that of SAPS members.  The table below shows the changes in the fixed establishment of the SAPS in 2017/18 compared to the previous financial year.

 

Table 2: Changes in SAPS fixed establishment

Fixed establishment	2016/17	2017/18	Difference
SAPS Act employees	151 651	150 791	860
PSA Act Employees	42 954	42 506	448
Total	194 604	193 297	1 307

Source: SAPS Annual Report 2017/18

 

Over the last five years (2013/14 – 2017/18), the police/population ratio increased year-on-year. The United Nations benchmark is one police officer to 500 people, as such, the SAPS is within the benchmark.

 

In 2013/14, the police/population ratio was one police member to 346 citizens (1:346) compared to a police/population ratio of one police member to 375 citizens (1:375) in 2017/18. According to the 2013 mid-year estimate, the SA population was 52 982 000 and grew to 56 521 948 in 2017. Despite the increase in population figures over the past five years, the fixed establishment of the SAPS decreased and is currently the lowest over the five-year period. The table below illustrates the changes in police/pollution ratio between 2013/14 and 2017/18.    

 

Table 3: Changes in the police/population ration over five years

Financial year	2013/14	2014/15	2015/16	201617	2017/18
Fixed Establishment	194 852	193 692	194 730	194 605	193 297
Police/Population ratio	1:346	1:358	1:362	1:369	1:375

Source: SAPS Annual Reports 2013/14 – 2017/18

 

During the 2017/18 financial year, the Department spent R67.1 billion of its R86.6 billion adjusted appropriation on Compensation of Employees (COE) (77.5%). Of the expenditure on COE, R34.3 billion was on salaries (64.6%), R740 million on overtime (1.1%), R2.76 billion on home owners allowances (4.1%) and R7.7 billion on medical assistance provided to members (11.5%). Additionally, the Department spent R2.4 billion on training, which was defrayed from the Administration Programme.

 

The Department had an overall vacancy rate of 0.1%. The largest portion of vacancies were located in the Senior Management Structure (SMS) salary band. Of the year-end establishment of 931 positions, 924 positions were filled, which is a vacancy rate of 0.8% (seven positions). 

 

In terms of critical occupations, the Department had a 50.7% vacancy rate in psychologists and vocational councillors. Of the year-end establishment of 217 positions, only 107 positions were filled.

 

In 2017/18, 211 jobs evaluations were concluded, which is 0.1% of the total establishment of 193 297. Of the 211 job evaluations, 141 evaluations were conducted in the highly skilled supervision salary band (levels 9-12), which is 66.8% of the total evaluations.

 

A total of 5 168 employees left the Department, of which 2 039 employees resigned (39.5%), 1 412 employees retired (27.3%) and 862 employees passed away (16.7%).

 

In 2017/18, four section 35 terminations were awarded, compared to the eight section 35 terminations approved during the previous financial year. The amount paid by SAPS to the employees amounted to R10.195 million and included leave-gratuity, pro-rata service bonuses, severance package and notice period.

 

Regulation 45(9) of SAPS Employment Regulations of 2008, provides that the National Commissioner may promote an employee into a post without advertising it, and without following a selection process. During 2017/18, the Acting National Commissioner made 47 Regulation 45 Promotions. Although this is significantly less than the previous financial year’s 83 promotions, the number remains high. It is comparable to the 41 such promotions made in 2015/16. But in 2014/15, only 10 such promotions were made and only one was made in 2013/14. During a Portfolio Committee meeting that focused on SAPS promotions, POPCRU stated that regulation 45 proportions are grossly misused and that the careers of many police members had been stifled by this misuse.

 

The following should further be noted in human resource management: 

• Performance rewards: No performance rewards were awarded to employees.
• Foreign workers: The Department employed 35 foreign workers.
• Suspensions: A total of 154 employees were suspended, which is a decrease compared to the 412 suspensions during the 2016/17 financial year.
  • Of the 154 suspensions, 85 exceeded 60 days.
  • The average number of days suspended were 58 days.
  • The suspensions cost the Department R5 million during the 2017/18 financial year.  

 

1. Programme 2: Visible Policing

 

The Department’s achievement on performance indicators in the Visible Policing Programme improved from 69% in 2016/17 to 83% in 2017/18. However, key performance indicators were not achieved, many of which relate to the reduction of serious crime, notably relating to crimes against women and children. The Programme had repeat material findings on several performance indicators, which dates back as far as 2011/12.  The AGSA made material findings on eight performance indicators as reported achievement on targets could not be verified.

 

1. Programme 3: Detective Services

 

The performance of the Detective Services Programme decreased from 79% in 2016/17 to 74% in 2017/18. The AGSA made material findings on four performance indicators as reported achievement on targets could not be verified.  The Department underperformed on the following performance indicators:

• Detection rate for serious crime;
• Detection rate for contact crimes;
• Detection rate for crimes committed against women;
• Detection rate for crimes committed against children;
• Conviction rate for contact-related crimes; and
• Conviction rate for crimes dependent on police action for detection.

 

From the total number of complaints received by the SAPS during the 2017/18 financial year on serious crimes (1 668 903 complaints), convictions were made in 126 924 thereof, which is 7.6%.  From the total of contact-related crimes, there was only a 4.5% rate and from the total of property-related crimes there was only a 3.2% conviction rate. 

 

Table 4: Criminal justice value chain

Priority Crimes	Total number of complaints reported	Complaints Detected	Complaints trial-ready	Convictions
Contact crimes	601 985	391 528	190 017	44 754
Contact-related crimes	116 017	63 706	19 740	5 315
Property-related crimes	510 627	92 450	40 767	16 804
Other serious crimes	440 274	200 206	71 693	60 051
Total	1 668 903	747 890	322 217	126 924

Source: SAPS Annual Report 2017/18

 

The conviction rate of the SAPS is used as a performance indicator to measure the effective investigation of serious crime. This is in support of Chapter 12 of the NDP and Outcome 3 of the Medium Term Strategic Framework: 2014-2019, namely that ‘All people in South Africa are and feel safe’ and determines the following:

• The impact of thorough and quality investigations on successful prosecutions;
• Ensure that criminals are brought to justice; and
• Restore the trust and faith of the communities in the ability of SAPS to investigate crime, deliver quality services and create a safe and secure environment.

  

1. Directorate for Priority Crime Investigation (DPCI)

 

The DPCI identified six performance indicators for the 2017/18 financial year, of which all targets were successfully achieved. However, the AGSA made material findings on the usefulness and reliability of several performance indicators.

 

A permanent National Head of the DPCI was appointed in May 2018 and is expected to bring much needed stability to the Directorate. 

 

The DPCI received an adjusted appropriation of R1.52 billion in the 2017/18 financial year. In-year, a R23.9 million virement was made to the subprogramme, bringing the final appropriation to R1.55 billion for the 2017/18 financial year, of which 100% of the funds were spent.

 

Towards mid-2016, the National Bureau for Illegal Firearm Control and Priority Violent Crime (NBIFCPVC) and South African Narcotics Enforcement Bureau (SANEB) were established with an interim capacity. The units fall under the command of the Serious Organised Crime Investigation Division of the DPCI. In March 2017, the Organisational Development Component of the SAPS conducted a work-study to determine the organisational structure of the Specialised DPCI Units. The work-study has been completed, as the Component is currently in the process of optimising the capacity of the units. However, the capacitation of the units, both in terms of financial and human resources, remains a key challenge for the DPCI.

 

Significant challenges were identified regarding the office accommodation of the DPCI, including:

1. Western Cape Province

• Pinnacle Building (Bellville): A month-to-month lease is in place up until the Department of Public Works has concluded the process of engaging the landlord to conclude the lease agreement.   
• Old SARS Building (Bellville): This is a state owned building and has been condemned by the Department of Labour. 

1. North West Province VM Building (Klerksdorp): There is valid contract which will expire on 31 March 2017. The SAPS will engage with NDPW to address the additional office accommodation. 
2. Eastern Cape Province (Mthatha): There is a valid lease contract for this building until 31 July 2017. The landlord is currently busy with renovations. 
3. Limpopo Province (106 Hans van Rensburg, 70 Grobler Street, 21 Market Street and Thoyandou Office): There is currently insufficient office accommodation and the matter will be escalated to the NDPW. 
4. Security/Access: With the assistance of the Division Protection and Security Services (PSS) of the SAPS, requirements for security and access to these buildings will be determined.

 

1. Programme 4: Crime Intelligence

 

The performance of the Crime Intelligence Programme decreased from 75% in 2016/17 to 73% in 2017/18. A permanent Divisional Head was appointed in the current financial year (2018/19), which will bring much needed stability to the CI Division. The AGSA made material findings on the reliability of performance information on five performance indicators. The capacitation of the Crime Intelligence (CI) Division of the South African Police Service (SAPS) has come under intense scrutiny over the past financial year.

 

1. Programme 5: Protection and Security Services

 

The performance of the Protection and Security Services Programme decreased from 100% in 2016/17 to 86% in 2017/18. Although this seems like a significant decrease, it is due to the small number of performance indicators. Of the seven performance indicators, the Programme underperformed on one performance target.

 

1. COMMITTEE Observations

 

The Committee made the following observations:

 

1. INTERNAL AND EXTERNAL AUDITS

 

Adverse audit findings: The Committee expressed significant concern about the second consecutive qualified audit of the Department and questioned whether the management team is strong enough to improve audit outcomes and move towards a clean audit opinion. The Department acknowledged that the situation cannot continue and assured the Committee that a process has been started to improve the strength of the management team.

 

Scope and terms of external audit: The Committee raised significant concerns about the continuous differences in the interpretations of Treasury Regulations and Circulars by the Department and the Office of the AGSA. The Committee indicated that the pre-audit phase is critically important and that the management letter must clearly define the scope and terms of the audit. Where exemptions are granted by National Treasury, this must be clearly and timeously communicated to the Office of the AGSA to avoid differences in interpretation.

 

Time delays in responses on audit queries: The Committee raised concern about the delays experienced by the Office of the AGSA when responses to audit queries were required. The Department was given three days for response, but this was seldom adhered to.

 

Recommendations of the Audit Committee: The Committee noted the recommendations made by the Audit Committee on improving the audit outcomes of the Department. Particular focus was placed on the recommendation to have independent reviews performed on all contracts entered into by the Department. The Audit Committee stated that this practice was abruptly stopped in 2012 for unknown reasons. The National Commissioner indicated that the reasons for the termination of the practice would be investigated and committed that the independent review of contracts would be reinstated as a matter of priority.

 

Combined assurance model: The Committee requested elaboration on the implementation of the combined assurance model of the SAPS. The Audit Committee indicated that the SAPS must reinvest in the model. The instability and mobility of senior personnel impacted negatively on the successful implementation of the model.

 

Attendance of Audit Committee meetings: The Committee asked whether the National Commissioner and Chief Financial Officer attend Audit Meetings. The Audit Committee indicated that the meetings were attended by Deputy National Commissioners. The Committee indicated that the National Commissioner and CFO must attend meetings and that the authority should not be delegated. The attendance was essential to mitigate possible adverse audit findings. The Committee further raised concern about the fact that the Audit Committee has not met with the Minister of Police to discuss audit outcomes.    

 

Powers of the Audit Committee: The Committee asked whether the Audit Committee has any power to enforce remedial action on adverse audit findings. The Audit Committee indicated that it functioned as an advisory body and not an oversight body and that the Accounting Officer remained responsible for the implementation of recommendations. The Minister of Police could be approached if the Audit Committee felt that its role was not taken seriously by the Department.

 

Integrated Justice System (IJS) Revamp project: The Committee expressed concern about the adverse findings made on the expenditure and performance of the Department in relation to the IJS Revamp project. The Committee requested the Department to explain why vehicles were procured from IJS funds. The Committee further requested the Department to indicate whether there is dedicated project manager attached to oversee the IJS Revamp projects. The Department indicated that it should have a Project Registrar and indicated that there was an officer overseeing the project at the level of a Major General, but that Divisional Commanders would also account for performance and expenditure.

 

Supply Chain Management (SCM): The Committee indicated that the deficiencies in the SCM Division pose a significant risk to the Department and must be addressed as a matter of priority. The Department indicated that forensic investigators have been appointed to investigate the challenges in procurement. The delegations were clear within the SCM Division, but a need was identified for a central accountability structure in the office of the CFO as a standard practice. The Department further indicated that investigations into transgressions in SCM have been initiated and that value chains have been established. The process would be chaired by the National Commissioner.

 

1. ADMINISTRATION PROGRAMME

 

Performance management system: The Committee highlighted the findings of the Office of the AGSA that identified challenges in the current performance management system of the SAPS in providing accurate and reliable performance information. The Department indicated that a review of key performance indicators and targets was underway to identify gaps and the optimisation of the performance management system would be prioritised. The Department indicated that the review aim at identifying whether targets were set without the appropriate resources attached thereto to successfully deliver on the set target.  

 

Investigation of the CFO: The Department stated that the investigation has been escalated to an expeditious process in terms of section 9 of the 2016 SAPS Discipline Regulation, but the process was interdicted.  

 

Bid Committees: The Committee requested the Department to indicate whether members of the Bid Adjudication Committee (BAC) are vetted to mitigate against irregularity in bid processes. The Department indicated that the BAC constituted six members of which five members have been vetted. The outstanding member was recently appointed and the vetting process is underway.  

 

Disclosure of SITA Assets: The Committee raised concern about the second consecutive finding by the AGSA on the nondisclosure of SITA assets on the Asset Register. The Committee requested the Department to explain the situation and also indicate what remedial action will be taken. The Department indicated that numerous engagements were held with SITA and the AGSA. An investigation was launched and would be reported to the Committee.

 

Infrastructure: The Committee raised concern about the lack of basic infrastructure at police stations, like operational telephones and telephone lines. An example was made of the Lwandle Police Station where communities are unable to phone the station to report cases. The Department indicated that a team from Management Intervention was sent to the station to investigate the incident. The telephone cables were stolen twice before and Telkom indicated that the cables will not be reinstated, which leaves the station without a working telephone. An alternative method of communication was established and the Department committed that all police stations would be evaluated for basic infrastructure.    

 

Death grant policy: The Committee requested the Department to explain the changes made to the Death Grant Policy. The Department indicated that changes have also been made to the Education Fund of the SAPS, but that the status quo remained in place until consultations with the Minister of Police were concluded.

 

Claims against the Department: The Committee requested the Department to indicate what led to the reduction in claims against the Department. The Department indicated that various strategies were implemented to mitigate against the increase in civil claims against the Department. The claims have decreased both in numbers and monetary value.

 

Interns: The Committee questioned whether there are sufficient interns to make a significant contribution at police stations or whether the number should be increased. The Department indicated that there were not sufficient interns and that the Department was constrained by the availability of funds. Interns were not paid salaries, but were given stipends. 

 

Capital works and safety at police stations: The Committee requested the Department to indicate what progress has been made on infrastructure development and safety measures at police stations. The Department indicated that the development of police infrastructure received continuous attention due to historic underperformance. A Building Strategy was developed to standardise the design of police stations to ensure uniformity and easier identification of requirements. Safety at police stations formed part of infrastructure development and would be rolled-out to the most vulnerable police stations. 

 

1. VISIBLE POLICING PROGRAMME

 

Community Policing Forums (CPFs): The Committee highlighted the necessity of CPFs as a crucial element in a holistic approach to crime prevention. The reactive nature of policing was highlighted during the recent protest action, namely “Operation Shutdown”. Effective CPF structures could have assisted in a proactive role in the early identification of community dissatisfaction. The Department indicated that CPFs were established before the CPF Strategy was developed and implemented. This resulted in a lack of emphasis on community-orientated policing and the role of CPFs. The Department indicated that engagements were held and that the Civilian Secretariat for Police Service (CSPS) had developed the CPF Policy and that the Strategy would build on the policy direction given by the CSPS. 

 

Victim friendly rooms (VFRs): The Committee requested an explanation for the unavailability of VFRs at some police stations. The Committee highlighted the need for victims of sexual crime to feel safe when reporting to the SAPS and the importance of a victim friendly service in order to reduce secondary victimisation. The Department indicated that although not all police stations had VFRs, they were linked to other support structures. VFRs would be incorporated in the proposed Building Strategy of the Department to standardise the design of police stations.    

 

Special allowances for divers and members of the K9 Units: The Committee requested the Department to indicate whether special allowances are given to divers and members of the K9 (dog) Unit as is the case with other specialised units, like the TRT and NIU. The Department indicated that a purification and regrading process was underway to reposition all specialised units in the organisation. This was in an effort to honor the dedication of members attached to specialisied units. The Department further indicate that the process was running concurrent to labour processes in the SSSBC. 

 

Classification of urban, rural and urban/rural mix police stations: The Committee asked the Department to explain the challenges experienced in the classification of police stations as urban, rural or urban/rural mix stations. The Department indicated that it was difficult to determine as a variety of factors must be taken into account in determinations. The Department further indicated that collaboration with Statistics SA was underway to address the challenges.

 

Reporting of more crimes against women and children: The Committee requested the Department to explain whether the increase in reported crimes against women and children can be attributed to an increased willingness of victims to report crimes to the SAPS or whether the Department should increase efforts to stem these crimes. The Department indicated that various additional structures have been established to encourage the reporting of crimes against women and children. The Victims of Crime Survey suggested an underreporting of sexual offences and the data from the SAPS and Statistics SA must be reconciled to provide a comprehensive understanding of the increase in crimes against women and children.

 

Reservists: The Committee requested the Department to provide the number of reservists currently attached to the SAPS. Specific reference was made to discrepancies in figures provided in the Annual Report and figures reported by the Minister of Police in response to a parliamentary question. The Department indicated that its attitude towards reservists was very positive as reservists are considered as a force multiplier. The Department indicated that a review of the Reservist Policy was initiated and would be concluded in the 2018/19 financial year. The Department indicated that a written response would be given to differentiate between the two categories of reservists.     

 

Reaction times: The Committee requested the Department to indicate whether police reaction times to reported incidents are solely based on entries in pocketbooks. The Department indicated that the main indicator was independent from stations through complaints logged at 10111 centres. Pocketbooks were only part of the verification process for audit processes. It was indicated that pocketbooks were not correctly filled in for various reasons, including a continuous need of officers to attend to complaints that does not allow time for the completion of pocketbook entries.  

 

Lost and stolen firearms: The Committee requested the Department to indicate the number of firearms lost or stolen separately. The Department reported that during 2017/18, 6 435 civilian firearms were reported lost or stolen. The Committee highlighted the fact that the figure only represents those reported to the police and could be much higher. The Committee further raised concern about the poor recovery of these firearms and the growth in the illegal pool of firearms and the effect thereof on violent crime levels in SA.  

 

Escapes from custody: The Committee requested the Department to indicate what number of the 785 arrestees that escaped from custody were rearrested. The Department indicated that a total of 784 persons were rearrested and that one was still at large and sought by the SAPS.  

 

1. DETECTIVE SERVICES PROGRAMME

 

Difference in conviction rates: The Committee raised concern about discrepancies between conviction rates reported by the SAPS and the National Prosecuting Authority (NPA). The Department explained that its conviction rate was based on charges whereas that of the NPA was based on the person found guilty. 

 

Detection rates for violent crime: The Committee raised concern about the low target set for detection of serious crime and the gradual decrease in performance on the target over the past couple of years. The Department indicated that the performance would be improved through the review process of performance indicators and targets. Corrective measures have been initiated and progress would be reported to the Committee.

 

Low detection rate for property crime: The Committee raised significant concern about the low detection rate for property crimes. During discussions, the Department explained that the target was based on the performance of the previous year. The Department further indicated that a review process was initiated and that case dockets would not be closed in less than three weeks from the complaint/crime being registered. The Committee took issue with this statement, as it pointed to the Department not taking property-related crime seriously. The Committee further highlighted the impact on people when stolen items are not recovered. The Department committed to improve the detection rate.

 

Availability of forensic science laboratory consumables (DNA kits): The Committee raised significant concern about the unavailability of DNA testing kits at police stations countrywide. The Committee had several meetings during the year to address concerns, specifically related to procurement challenges in the FSL Division. The Department indicated that the situation had received attention and that DNA kits have been reprioritised to police stations that had run out of kits. The Department confirmed that all police stations have an adequate number of kits currently available. The Department further stated that police stations and provinces were required to submit a needs request, as all police stations did not have an equal demand for DNA testing kits.

 

Rotation policy: The Committee reiterated the need for Detectives to be rotated to mitigate against possible collusion with criminal elements. The Department indicated that permanent relocation of members are problematic, as it impacts on various areas in terms of members’ families and has labour implications. The Department indicated that possible collusion was mitigated by sending task-teams to environments of concern and high probability for collusion, like airports and that this initiative had been successful. The Department further indicated that rotation can have a disruptive impact on stations that are performing well.

 

Railway crime/train sabotage: The Committee raised concern about the negative economic impact of train sabotage, especially in the Cape Town metropolitan area. The Department indicated that it needed a multi-disciplinary approach and that the Provincial Commissioner of the Western Cape was closely involved in the approach to address train sabotage. A task-team had been established and arrests have been made. The Department was focused on a stabilisation process and engagements with the Department of Transport have been initiated to perform a root cause analysis on the factors driving train sabotage. The Department indicated that the involvement of crime intelligence would be increased to play a more proactive role in possible prevention of incidents of train sabotage.   

 

Investigations into possession of cannabis for personal use: The Committee questioned the process going forward on cases already being investigated for the possession of cannabis subsequent to the Constitutional Court judgement legalising the personal use of the drug. The Department indicated that an internal directive had been issued regarding the use and possession of dagga that states that persons may not be arrested for the use, cultivation or possession of cannabis. This directive would remain in place until Parliament decides on the amount an individual may carry.     

 

1. DIRECTORATE FOR PRIORITY CRIME INVESTIGATION (DPCI)

 

Budget allocation: The Committee reiterated its support for the DPCI to become a separate Budget Vote. The Committee acknowledged the need for an amendment to the SAPS Act, 1995 (Act No 68 of 1996) to realise the establishment of a separate Vote, but requested the Directorate to indicate whether any progress has been made in engagements with National Treasury to lay the groundwork thereto. The National Head indicated that documents and a costing proposal have been compiled and presented to National Treasury.

 

Corruption in specialised units: The Committee indicated that the DPCI has done well in arresting members on corruption and requested the National Head of the DPCI to indicate what additional steps can be taken to further mitigate against corruption in specialized units. The National Head indicated that more scrutiny was applied during the recruitment process of members and that this process includes fingerprint analysis to identify any previous convictions. The National Head further indicated that vetting was done and that members were tested for drugs and alcohol on an ad hoc basis. The National Head highlighted the necessity for members of the DPCI to be beyond reproach.   

 

Corruption in the Justice Crime Prevention and Security (JCPS) Cluster: The Committee highlighted the need for investigations of alleged criminality in the JCPS Cluster to be prioritised in order to promote public trust in the judiciary. The National Head of the DPCI indicated that these crimes are prioritised and that gains have been made during the 2017/18 financial year. The National Head further committed that crimes in the JCPS Cluster will continue to enjoy priority in future.       

 

Capacitation of specialised firearms units: The Committee drew a connection between the high murder rate and number of firearms lost and stolen during the 2017/18 financial year. The Committee highlighted the effect that the illegal pool of firearms had on violent crime in SA. Coupled thereto, the Committee noted the delays in the Firearms Control Amendment Bill and the Firearms Amnesty. The Committee request an update on the capacitation of the National Bureau for Illegal Firearm Control and Priority Violent Crime (NBIFCPVC). The National Head of the DPCI confirmed that the unit had been established and had 240 members countrywide. However, the members were not permanently attached to the DPCI, as several members were seconded from the SAPS. The National Head further indicated that the NBIFCPVC was also involved in addressing crash-in-transit robberies.      

 

Equipment and vehicles: The Committee requested the Directorate to indicate whether the DPCI has sufficient equipment, specifically cellphones, vehicles and investigation tools. The Directorate indicated that it has sufficient cellphones, but is experiencing challenges in budget limits abused in isolated incidents. However, challenges are experienced in the timely delivery of vehicles and the extended time vehicles spend in garages. It was further indicated that most vehicles are old and nearing end of service. The National Head further indicated that the DPCI is less than 1% of the Department, yet it is not well resourced.     

 

Office accommodation: The Committee requested the Directorate to indicate whether the challenges with office accommodation have been addressed, specifically noting the Pinnacle and old SARS buildings. The Directorate indicated that little progress had been made and highlighted the need for a central building to accommodate all members of the DPCI (at National level). The Directorate further indicated that the housing of members in different buildings posed a high risk. The National Commissioner indicated that the office accommodation of the DPCI formed part of the newly developed Building Strategy of the Department.   

 

Financial investigators: The Committee requested the Directorate to indicate whether it has an adequate number of financial investigators to address serious commercial crime. The Directorate indicated that there were 66 investigators nationally, but that the ideal number was 165 investigators. The Directorate confirmed that additional financial investigators would be recruited to fully capacitate this specialised area of investigation. 

 

Rhino poaching: The Committee raised concerns about the manner in which cases of rhino poaching were investigated citing a well publicised case. The Department indicated that although investigations into rhino poaching (and all endangered species) were investigated by task-teams, a specific docket was allocated to one officer to take the case through court once the investigation is finalised.

 

Overtime: The Committee requested the Department to explain the manner in which the overtime policy was applied to specialised units. The Department indicated that the overtime budget for specialised units and multi-disciplinary task teams were located nationally in order to prevent some members being paid and others not due to the availability of funds in one division as opposed to another.

 

1. CRIME INTELLIGENCE PROGRAMME

 

Corporate Renewal Strategy: The Committee requested the Department to indicate what progress has been made on the implementation of the Strategy. The Department indicated that it was an ambitious plan and that the timeframe for the implementation spans the MTEF period. It was further stated that the crime intelligence team was being built. It was highlighted that various aspects regarding the availability of technology needed further attention.   

 

Stability in the division: The Committee highlighted the fact that instability in the division was provided as reasons for deviations from predetermined performance targets and requested the Department to indicate whether stability has been restored. The Department indicated that it was a work in progress, but that gains had been made.

 

Vetting: The Committee requested the Department to report progress on the vetting and especially to explain what happens when clearance is denied. The Department stated that the current policy did not allow for the dismissal of members who fail security screening, but that a new policy was being developed to address the gap. The Department indicated that vetting would be made part of employment contracts in future. It was further stated that a permanent vetting panel would be established to address the large amount of vetting applications. The panel was being convened on an ad hoc basis countrywide.   

 

Security of e-vetting system: The Committee questioned the security of the e-vetting system and sought assurance from the Department that personal documents are protected. The Department indicated that the system was more secure that the courier system previously used. The Department indicated that encrypted emails were used for communication and transmission of documents. The Department stated that some challenges existed, but that it had received attention.

 

Capacitation of Crime Intelligence Division: The Committee requested the Department to provide assurance that the Division will be adequately capacitated with skilled personnel. The Department indicated that a resource plan had been developed for the division and that a specific need for research capacity was identified. It was further stated that Crime Intelligence capacity had been displaced elsewhere in the organisation, thus removing skilled personnel from the Division. The Department indicated that 360 posts from the fixed establishment would be shifted to the Crime Intelligence Division and that reenlistment would be considered where appropriate candidates were identified. A number of positions had been advertised for specialists in vetting. The additional capacity was necessary as the Department had in excess of 18 000 applications for vetting.   

 

Role of Crime Intelligence in Operational Command Centers: The Committee requested the Department to explain the current role played by crime intelligence in Operational Command Centres. The Department indicated that a roll-out plan had been developed and incorporated the Visible Policing Division, which formed part of the Safer City Concept. 

 

Representation on the International Criminal Police Organisation (Interpol): The Committee requested the Department to indicate whether international representation in other Interpol jurisdictions has been addressed and is sufficiently capacitated. The Department indicated that a Threat Management System had been implemented to improve collaboration. A root cause analysis was done to identify new countries from which threats emanate. A challenge in representation in different countries was the fact that recruitment could only be done from within the Crime Intelligence Division, but approval had been granted to recruit from the whole of the SAPS.

 

Proactive intelligence reports operationalised: The Committee questioned the significant underperformance on the target to operationalise proactive intelligence reports due to organisational and operational challenges. The Committee indicated the need for a proactive crime intelligence approach and the non-utilisation of these products is a serious concern. The Department stated that the indicator was introduced in the 2017/18 financial year, to measure performance on the number of reports operationalised. Information was generated at a cost to the Department and must produce products to account for expenditure. The Department assured the Committee that consequence management would be implemented against members not using the proactive reports where an incident happens that could have been avoided. The Department indicated that it would focus on the capacity to activate reports.   

 

Community participation: The Committee raised concern about the perception that communities are able to identify criminal elements (like location of drug dens) before crime intelligence and that this points towards a disjuncture in the intended proactive approach of the Crime Intelligence Division. The Department indicated that the concern was being addressed and the community concerns regarding criminal activities in their areas should be addressed before it escalates into protest action.   

 

Involvement in the WC Anti-Gang Strategy: The Department indicated that a strategy had been developed and that the task-team appointed in the Western Cape would benchmark against the gang strategy deployed in the Eastern Cape Province, as it yielded desired results. It was further stated that the understanding of gangs needs to be redefined.  

 

Counter-intelligence Strategy: The Committee requested elaboration on the proposed development of a Counter-intelligence Strategy. The Department indicated that it could not provide much detail on the Strategy, but would do so in a closed meeting. The aim of the strategy would be to protect the Department from inside amongst others.

 

1. PROTECTION AND SECURITY SERVICES PROGRAMME

 

Review of security measures at National Key Points (NKPs): The Committee requested the Department to indicate whether security measures at all NKPs will be reviewed in order to mitigate against the recurrence of the incident at the Parliamentary precinct where an official fatally shot himself. The Department stated that the need for a review would be discussed in various NKP discussion forums and that emergency plans were being reevaluated.  

 

Readiness for implementation of the Critical Infrastructure Protection Bill: The Committee requested the Department to indicate whether processes have been developed to implement the provisions of the Critical Infrastructure Protection (CIP) Bill once enacted. The Department indicated that the Regulations and internal directives have already been developed. One of the requirements of the CIP Bill was that the commencement of the Act should happened simultaneously with the implementation of the Regulations. 

 

Regrading process: The Committee raised concern about the regrading process currently underway in the Department, especially cautioning against sowing discontent as funds made available by the Minister of Police was intended for promotions of members previously not considered for promotion. The Department indicated that there was a backlog of approximately 66 000 promotions and that the Personnel Strategy being developed would also include a promotion plan. The Department explained that various positions, especially in specialised units must be regraded as the training associated thereto dictates the entry level of officers. 

 

Unfunded mandate: The Committeee raised concern about the unfunded mandate of SAPS to provide protection and security services at events held the Department of International Relations and Cooperation (DIRCO). The Department indicated that according to the current policy, DIRCO must request a quotation from the SAPS for protection and security services to be delivered at a specific event. However, there was most often a refusal from DIRCO to pay the fees at the last minute, but in terms of the mandate of SAPS the services cannot be refused. The Department indicated that this remained a challenge and took significant resources away from the Department that could have been more effectively used in alternative areas of performance.

 

Risk Information Management Support System (RIMAS): The Committee asked whether the review of the RIMAS Policy has been completed. The Department indicated that the review had been completed and submitted to the Minister of Police to be taken forward for discussions in Cabinet. 

 

Budget allocation: The Committee questioned the year-on-year increase in the budget allocation of the VIP Protection Division. The Department indicated that the budget allocation was dependent on the number of requests for risk assessments. Interventions were implemented to mitigate the risks.

 

Underperformance: The Committee took issue with the fact that on NKP was not evaluated because an appointment with the owner of the building could not be secured. The Department indicated that various attempts were made to complete the evaluation and that letters were sent to request appointments. However, it was indicated that an intervention was made to clarify the role of the Minister of Police in this regard, for him to engage with his counterparts to assist when Departments were nonresponsive to requests to perform evaluations.

 

1. COMMITTEE Recommendations

 

The Committee recommends the following:  

1. The National Commissioner must meet with the Audit Committee on a quarterly basis. This responsibility should not be delegated to Deputy National Commissioners.
2. The Audit Committee meetings must be attended by both the National Commissioner and the Chief Financial Officer (CFO) of the Department. 
3. The Executive Authority and Audit Committee should meet annually to discuss adverse audit findings.
4. The Department and the Office of the AGSA must clarify the manner in which Treasury regulations, prescripts and circulars are interpreted during the pre-audit phase and must be stipulated in the Management Letter. This will avoid adverse audit findings based on differences in interpretation by the Department and the AGSA.        
5. Funds allocated to the Integrated Justice System (IJS) Revamp project should be allocated correctly between operational and non-operational functions.
6. The Department should reinvest in the effective implementation of a fully-fledged Combined Assurance Model as a key internal control mechanism.  
7. A review of performance indicators and target must be prioritised to ensure that they reflect Departmental performance and encourage service delivery.
8. The Department should engage with the Department of Health to enter into a Service Level Agreement to expedite all toxicology analysis reports to effect improved conviction rates for crimes dependent on police action for detection.   
9. Investigations on alleged criminality in the JCPS Cluster should be prioritised to improve public trust in the judiciary.
10. Efforts to address vandalism and sabotage of trains, especially in the Western Cape Province, should be increased to mitigate the negative economic impact thereof.
11. Initiatives to address the escalation of gang-violence should be increased, especially in the Western Cape Province. 
12. The policy on the provision of protection and security services rendered to DIRCO must be revised and engagement should be prioritised to ensure that the unfunded mandate of SAPS is addressed.
13. The Department should prioritise the independent review of high level contracts prior to approval.
14. The Department should improve its record keeping systems to support financial and performance reporting.
15. The Department should respond to audit queries within the stipulated timeframes to avoid adverse audit findings that could have been prevented. 
16. Investigations into transgressions resulting in irregular, unauthorised and fruitless and wasteful expenditure should be prioritised and conducted effectively. Consequence management must be applied to prevent repeat transgressions.

 

1. reporting Requirements

 

1. Written responses

 

The Department must provide written responses before or on 02 November 2018 on the following:

 

1. Feedback report on the improvement plans to address the declining financial health of the Department.
2. Feedback report on the review of the performance management system in relation to the determination of performance indicators and targets in order to ensure that it reflects performance and encourage service delivery.
3. Report on the action steps taken to address the misstatement of SITA Network Assets.
4. Report on the methodology used to classify police stations as rural, urban or rural/urban mix stations.
5. Report on the current number of reservists in the SAPS, including a breakdown in the two categories of reservists as per the National Instruction of the SAPS (3/2014). 
6. Report on implementation steps to improve the detection rate for serious crime.
7. Report on the initiatives taken to address railway crime, particularly the sabotage of trains.
8. Report on progress made on the organisational restructuring of the Crime Intelligence Division.

 

1. Progress reports

 

The Department should provide the following feedback reports:

1. Quarterly reports on the implementation of action plans to address adverse audit outcomes.
2. Quarterly reports on the status of the investigations and actions taken against the transgressors on non-compliance instances and implementation of preventative controls over the supply chain management transgressions.
3. Quarterly report on the progress made to incorporate mandatory security screening in the employment contracts of SAPS members.

 

1. Discontinuation of historic feedback reports

 

The Department should provide final consolidated reports on the previously requested regular reports by the Committee. These reports must be submitted on or before 30 November 2018 and should state the progress made since the request date. The reports should also highlight what initiatives were implemented to address the concerns raised by the Committee. These include: 

1. Annual report on senior managers who do business with the SAPS;
2. Bi-annual reports on the Use of Force.
3. Bi-monthly reports on the rotation of key staff at stations countrywide;
4. Monthly progress reports on the CFR turnaround strategy; and
5. Monthly reports on the Supply Chain Management (SCM) deviations and transgressions and what action steps were taken against officials who fails to comply with SCM policies.
6. Quarterly reports on the implementation of consequence management;
7. Quarterly reports on the expenditure of funds allocated to the Integrated Justice System and Criminal Justice Revamp projects;
8. Quarterly reports on implementation of the Criminal Law (Forensic Procedures) Amendment Act (DNA Act).
9. Quarterly reports on the progress made on the implementation of the Integrated Case Docket Management System (ICDMS);
10. Quarterly reports on the establishment of specialised units such as the FCS and organised crime and anti- corruption units in particular;
11. Quarterly reports on action steps to address pocket books not correctly filled in to support performance on police reaction time;
12. Quarterly reports on the progress of the roll-out strategy of Public Order Policing;
13. Quarterly reports on the filling of vacancies in the Senior Management Structure;
14. Quarter reports on organisational restructuring;
15. Quarterly reports on the capacitation of the of the Crime Intelligence Division and crime intelligence service rendered at station level;
16. Quarterly reports on the implementation of Lifestyle Audits on its senior management, with special emphasis on supply chain management; and
17. Quarterly reports on progress made in forensic investigations on Supply Chain Management (SCM): Information and Communication Technology (ICT) and contract management.

 

1. CONCLUSION

 

The Committee highlighted the need for an improvement on audit outcomes and indicated that the Department should aim for a clean audit in future. The importance of early engagement with National Treasury and the Office of the AGSA is crucial during the pre-audit phase. Focus should be prioritised on the effective and efficient implementation of consequence management and improved internal controls.  

 

Report to be considered.