ATC191017: Budget Review and Recommendation Report of the Portfolio Committee on Police on the 2018/19 Annual Report of the South African Police Service (SAPS), dated 16 October 2019.

Police

BUDGET REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON POLICE ON THE 2018/19 ANNUAL REPORT OF THE SOUTH AFRICAN POLICE SERVICE (SAPS), DATED 16 OCTOBER 2019.
 

The Portfolio Committee on Police, having considered the financial and service delivery performance of the South African Police Services (SAPS) for the 2018/19 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 2018/19 financial year and has tracked progress during the current financial year (2019/20). The Committee has considered quarterly expenditure reports for 2018/19 financial year.

 

The Committee was briefed on the annual performance for 2018/19 by the Department on 8-9 October 2019. The Committee also met with the Auditor-General and SAPS Audit Committee on the audit outcomes on the same day. Copies of the presentations are available from the Committee Secretary. The Committee has also considered the Directorate for Priority Crimes Investigation report for the 2018/19 Financial Year.

 

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 2018/19 financial year. 
  • Section 3: Report of the Auditor-General of SA (AGSA). 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 2018/19 Annual Report hearings.
  • Section 8: Recommendations. This section contains the recommendations made by the Committee.
  • Section 9: 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)

 

In his February 2019 State of the Nation Address, the President emphasised the fight against gender-based-violence, corruption and community orientated policing.  The President noted that the government has moved towards restoring the stability and credibility of state institutions such as the National Prosecution Authority (NPA), the South African Police Service (SAPS) and the South African Revenue Service (SARS) though appointments to the leadership, establishment of the Nugent Commission of Enquiry and the intention to re-establish the National Security Council. In addition, the government responded to calls for action by convening a Gender-Based Violence and Femicide Summit to co-ordinate the response to the scourge of gender based violence.  

The President listed five priorities for the country in the coming year:

  1. Accelerate inclusive economic growth and create jobs;
  2. Improve the education system and develop the skills that is needed now and into the future;
  3. Improve the conditions of life for all South Africans, especially the poor;
  4. Step up the fight against corruption and state capture; and
  5. Strengthen the capacity of the state to address the needs of the people.

 

With respect to safety provision, the President noted that the Community Police Strategy was launched in October 2018 which focussed on building partnerships between the community and the police and making more resources available for better communication in the fight against crime. The President announced that the Family Violence, Child Protection and Sexual Offences (FCS) units would be strengthened to improve capacity and record keeping. In view of this and the fight against gender based violence, a Gender Based Summit working group is finalising the Strategic Plan on Gender Based Violence.

The SAPS was in the process of restructuring its resources to local level in order to make the fight against crime more effective.

The President announced the establishment of an Investigating Directorate in the office of the

National Director of Public Prosecutions (NDPP) to deal with, and prosecute, serious corruption and associated offences. The Directorate will focus on the evidence that has emerged from the Zondo Commission of Inquiry into State Capture, other commissions and disciplinary inquiries.

The President pledged to work more closely with civil society organisations to realise the implementation of the decisions of the National Summit on Gender-Based Violence and Femicide.  

Lastly, the President announced that drug and alcohol abuse is tearing society apart and that taverns, shebeens and liquor outlets near school premises must be shut down.

 

  2.3      Key priority areas

            2.3.1     Ministerial Priorities

  • Develop and implement a revised policing approach that will address the core mandate of fighting crime;
  • Directed to reduce murder/attempted murder, house/business robberies, car hijackings, Cash-in-Transit (CIT) heists and crimes against women and children;
  • Retrain and capacitate all specialised units, increase police visibility, address the backlog of promotions and improve the morale of members; fight corruption, filling of vacant crucial management posts and to capacitate the Directorate for Priority Crimes Investigation (DPCI);
  • Halve crime in the next decade;
  • Prioritise Gender-Based Violence through implementation of the Gender Based Violence Strategy;
  • Prioritise the building of community police forums.

 

            2.3.2     SAPS Priorities

The SAPS, noting that 2019 is the penultimate –year of the Medium Term Strategic Framework (MTSF) which spans for 2014-2019, has prioritised a number of priority strategies for the 2018/19 financial year. These include:

 

  • Recruitment, Selection and Retention Strategy/Recruitment Strategy
  • Reviewed SAPS Transformation Plan
  • Contract Management Strategy
  • Employee Health and Wellness Strategy
  • Ethics and Anti-Corruption Strategy (Anti-Corruption)
  • Community Policing Strategy
  • Junior Leadership Concept
  • Anti-Gangsterism Strategy Implementation Plan
  • Cold Case Strategy

 

The SAPS has committed itself to achieving the National Development Plan targets prioritised in the First State of the Nation address of the Sixth Parliament. To this end, the SAPS listed the NDP targets as follows;

 

  1. Economic transformation and job creation;
  2. Education, skills and health;
  3. Consolidating the social wage, through reliable and quality basic services;
  4. Spatial integration, human settlements and local government;
  5. Social cohesion and safe communities;
  6. A capable, ethical and developmental state; and
  7. A better Africa and world.

The SAPS has identified and initiated two processes that deals with underperformance. These are availability of resources that are required to implement the short and medium-term priorities, and the targeted performance that the SAPS has set itself. The SAPS has noted that it requires an integrated approach for the acquisition, distribution and application of all resources.

 

2.4        Key priorities of the Portfolio Committee on Police

 

Subsequent to the 2018/19 budget hearings, the Portfolio Committee highlighted priorities that the newly appointed Minister and Deputy Minister of Police should focus on, which include:

 

1.         SAPS must fully resource the top 30 stations with human and material resources                         that contribute most to crime in order to ensure that it attains critical mass in the                     fight against crime.

2.         SAPS reports on all IJS projects applications to the Department and Justice and             Correctional Services.

 3.        The Committee recommends that the building programme of the SAPS in rural areas       must be accelerated.

4.         The SAPS sharpen its use of ICT by reviewing its contracts with the SITA and      developing its own technology section.

5.         The SAPS prepares a detailed strategy and operational plan to implement the     President’s target of a 50% reduction in violent crime.

6.         The SAPS develop clear plans to enhance Border Security and provide it with an update to participate in the Border Management Agency (BMA).

7.         The SAPS collaborates with the IPID and the DPCI         on investigating systemic          corruption within the ranks of the Department and provide       the IPID and DPCI with the required information required to deal with corruption.

8.         The SAPS applies vetting to all police officers responsible for dealing with domestic       violence at station level.

9.         The SAPS revises the Victim Friendly Rooms location, volunteers and equipment to        and keep proper inspection reports of domestic violence registers.

10.        The SAPS works with the Department of Basic Education and the Metro Police to           improve safety services to schools.

11.        The SAPS must do more to trace and recover stolen firearms and increases the sanction             for police officers who negligently lose their firearms.

12.        The SAPS urgently makes available human and material resources to the National Anti-    Gang Unit and train its members as a matter of priority to fight the gangs across the     country.

13.        The Department reviews its Compensation of Employees allocation against         international benchmarks and value for money. The SAPS should provide the          Committee with a breakdown of provincial budgets.

14.        The Committee recommends that the SAPS reviews its APP targets to reflect the new      requirements reduction of for violent crime set by the President.

15.        The SAPS must table the SAPS Amendment Bill as a matter of priority in order to align   the SAPS Act with the Constitution during the 2019/20 financial year.

 

  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 third qualified audit from the AGSA for the 2018/19 financial year. The opinion was based on the following:

 

  • Irregular expenditure: The AG was unable to obtain sufficient appropriate audit evidence that all irregular expenditure incurred for the current and previous years had been properly accounted for. This was due to payments made in contravention of the Supply Chain Management (SCM) requirements. Consequently, the AG was unable to determine whether any adjustment was necessary to irregular expenditure stated at R1,183 billion (2018: R1,164 billion).

 

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

 

  • Movable tangible assets: The AG was unable to obtain sufficient appropriate audit evidence for the restatement of the corresponding figure for immovable tangible capital assets. As described in note 31 to the financial statements, the restatement was made to rectify a prior year misstatement, but the restatement could not be substantiated by sufficient and appropriate supporting audit evidence. The AG could not confirm the restated and current year amounts by alternative means. Consequently, the AG could not determine whether any adjustment was necessary to the other fixed structures within immovable tangible capital assets figure stated at R3,643 billion (2018: R3,643 billion), in note 31 to the financial statements.

 

An emphasis of matter was highlighted on the material underspending of R1,131 billion in the Detective Services Programme.

The AG made material findings on the reliability of reported performance information and non-compliance with legislation. The material findings on reported performance information was largely related to an inadequate performance management system, lack of supporting evidence and lack of an adequate record keeping system. Significant material findings were made in the Visible Policing, Detective Services and Crime Intelligence Programmes.

Further, in terms of material findings on compliance with legislation, the AG indicated the following -

  • The financial statements submitted for auditing were not supported by full and proper records as required by section 40(1)(a) of the PFMA. The supporting records could not be provided subsequently, which resulted in the financial statements receiving a qualified opinion.
  • 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 with a transaction value above R500 000 were procured without inviting competitive bids, and deviations were approved by the Accounting Officer, despite it being practical to invite competitive bids, contrary to Treasury regulations 16A6.1 and 16A6.4. Similar non-compliance was also reported in the prior year.
  • 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 the 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.
  • In some instances, disciplinary steps were not taken against officials who had incurred and permitted irregular expenditure, as required by section 38(1)(h)(iii) of the PFMA. No investigations had been conducted and/or finalised by management in some of the cases, while some of these cases had been carried forward from prior years.

 

In terms of internal control deficiencies, the AG found -

  • Leadership did not take the appropriate action for irregular expenditure incurred by the Department, resulting in a lack of consequences for certain transgressions of legislation, related to SCM.
  • Leadership did not exercise oversight responsibility regarding financial and performance reporting and compliance as well as related internal controls.
  • The Department developed an action plan to address 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 relating to reporting on performance information and SCM.
  • Weaknesses in the internal controls relating to systems of maintaining proper records and accessibility to support daily and monthly processing of transactions, resulted in the regressed audit outcomes of predetermined objectives.
  • Senior management was slow to implement key controls and address risk areas related to performance information and financial statements, which resulted in uncorrected material misstatements.
  • Management did not adequately implement proper preventative reviewing and monitoring controls to prevent non-compliance with legislation, relating to SCM. The resultant irregular expenditure was also not fully detected and disclosed.

 

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

 

 

  1. GOVERNANCE

 

4.1        Performance Management

The SAPS Audit Committee reported on the performance information management and concluded that the performance management system in its current form did not provide sufficient assurance as to the accuracy and completeness of performance information was concerning. The Audit Committee flagged the programmes 2,3 & 4 with respect to extracting crime statistics supporting information from information technology systems. The Audit Committee has committed to further investigate the matter.

Consequence management in the SAPS needs to be addressed as it appears that it did not significantly have the required effect and lead to behaviour change within the department.

The Audit Committee will monitor the department through a structured accountability process, to gauge the progress of the SAPS management with respect to instilling a culture of ownership within the organisation. 

 

 

  1.       Risk Management

The SAPS has faced a number of risks throughout the year under review and the Enterprise Risk Management Committee (ERMC) has not been effective in meeting its obligations. The ERMC has only met once out of four designated times during the year under review.

Despite the organisational structure of the ERMC being approved with its reporting line directly to the Accounting Officer, the Committee has not been effective, which contributed to the inability of the SAPS to effectively respond to risks within the department.

The composition of the ERMC should be reconstituted to ensure compliance to the Public Sector Framework, whereby the majority of members should be external members, as opposed to the current state. The process of appointing a Chief Risk Officer and risk practitioners need to be expedited. It is also important that the Accounting Officer and the entire leadership of the SAPS vigorously drive the agenda of risk management within the organisation

 

4.3        Combined Assurance

During the previous financial years of 2016/2017, as well as 2017/2018, the process of combined assurance was put on hold. This was due to the changes within leadership of the SAPS where the responsible persons involved within this process were rotated to other areas where they were needed. A resolution was taken on 1 August 2018 for the process to be resuscitated, but it was not implemented. The Audit Committee has again advised management to implement the resolution.

 

4.4        Supply Chain Management, Procurement and Contract Management 

 

The SAPS Audit Committee has identified that the policies and internal control systems and policies within the Procurement environment is outdated with respect to prescripts from the National Treasury. As a result, the SAPS has not been able to detect instances of non-compliance and this resulted in significant fruitless, irregular and wasteful expenditure.

The Audit Committee has noted that the SAPS has to legally enforce compliance through a clear action plan with timeframes.

 

4.5        Financial Management

The SAPS internal Committee has noted that despite, its many recommendations, the be department has not fully addressed and implemented the concerns and recommendations with respect to defined management areas.

The SAPS Management has provided assurance that effective corrective action will be implemented, in respect of all internal control weaknesses. The Audit Committee has requested the Department to review the current Business Agreement with SITA, in order to clarify the roles and responsibility of each one of the parties to the agreement.  This has been a major problem for the SAPS with respect to the immovable tangible assets receiving a qualified audit for the second year in a row. 

    

  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 term of the Audit Committee has come to an end on 1 August 2018 and have been appointed on a month to basis until a new Committee is appointed.

 

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 08 October 2019, the Audit Committee commented on the SAPS internal plan by noting the following:

 

  • The Accounting Officer hosted a workshop which was attended by all members of the Board of Commissioners of SAPS and members of the Audit Committee
  • The aim of the workshop was to develop an action plan to address audit findings / outcomes of both AGSA and Internal Audit
  • The discussions centered around the following
  1. Identification of root causes
  2. Development of relevant and viable responses (action plans) to the audit outcomes
  3. Responsibilities and accountability
  4. Consequence management
  5. Best practices where clean audits were achieved
  6. Requirements to achieve a clean audit
  • The Audit Committee was of the opinion that the action plans, if implemented and monitored, would address the matters raised by the auditors and prevent the same of recurring in future. However, it noted that some of the implementation dates do not seem to be realistic and this was discussed with management
  • The Audit Committee approved the amendment of the Internal Audit Plan to assist management in improving internal controls in respect of procurement.

 

The Audit Committee made the following recommendations:

  1. The established Audit Steering Committees meet on a 2-weekly basis to inter alia monitor the implementation of audit action plans
  2. Management to discuss revising the business agreement with SITA to clarify the roles and responsibilities of each of the parties regarding ownership and control as well as the basis relating to the valuation of the assets
  3. Regular monitoring of progress with the implementation of audit action plans as it is one of the items on the agenda of the Audit Committee
  4. The high level responsibility of the Audit Committee is to assist the Accounting Officer with the effectiveness of the department assurance functions and services with particular focus on combined assurance. In this regard, a member of the Audit Committee to provide guidance regarding combined assurance and implementation thereof will be availed
  5. We will continue monitoring management’s responses to and implementation of internal audit recommendations
  6. Insist on more effective consequence management processes that could include:
  • Disciplinary proceedings
  • Recovery of losses due to irregular expenditure, fruitless and wasteful expenditure, etc.
  • Dismissals
  • Training and development

 

  1. FINANCIAL OVERVIEW

 

  1. Appropriation statement

When considering the financial statements of the SAPS, it is important to keep some perspective on the size thereof. At R91.4 billion (R91 428 742 000.00) it is the second largest allocation in government and about R1 billion (R916 million) represents 1% of the SAPS budget. For instance, in 2018/19, the Civilian Secretariat for Police had a budget of R131.2 million and the Independent Police Investigative Directorate (IPID) R315.1 million, which is 0.14% and 0.35% of the SAPS budget respectively.

 

In 2018/19, the SAPS had an Adjusted and Final Appropriation of R91.68 billion, of which 98.6% was spent at year-end (R1.255 billion unspent). During 2018/19, the Department made various in-year adjustments to the budget. The largest of which was a R679.8 million virement from the Administration Programme to defray excess expenditure in the other budget programmes of the Department. These funds were used to increase the allocation of the Visible Policing Programme with R246.6 million, the Detective Services Programme with R297.6 million, Crime Intelligence Programme with R77.5 million and the Protection and Security Services Programme with R58 million. Despite the in-year shifts, the Department still underspent.

 

 

Table 1: Appropriation statement for 2018/19

Programmes

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual Expenditure

Variance

% Exp. of Final Appropriation

Administration

19 403 113

(679 872)

18 723 241

18 600 634

122 607

99.3%

Visible Policing

46 872 313

246 654

47 118 958

47 117 278

1 680

100%

Detective Services

18 661 647

297 651

18 959 298

17 828 235

1 131 132

94%

Crime Intelligence

3 804 713

77 522

3 882 235

3 882 235

0

100%

Protection and Security Services

2 942 375

58 054

3 000 429

3 000 429

0

100%

Total

91 684 161

0

91 684 161

90 428 742

1 255 419

98.6%

     Source: SAPS 2018/19 Annual Report

It is concerning that despite the movement of funds within and amongst the different Programmes to defray excess expenditure and to realise 100% expenditure at year-end, significant underspending of R1.255 billion was still recorded (unspent funds are returned to Treasury). The under expenditure together with the R150 million saving declared during the adjustments period is unacceptable in light of the current crime situation in South Africa.

 

Irregular expenditure

In 2018/19, the Department had an opening balance of R1.163 billion in irregular expenditure. This is a significant increase from an opening balance of R20.7 million in the previous financial year. The SAPS ascribes this to improved processes and controls to detect and confirm alleged irregular transactions in respect of contracts entered into in prior years.

The Department incurred irregular expenditure of R3.565 million in 2018/19, compared to R320 000.00 in the previous financial year. During 2018/19, insignificant amounts have been condoned, leaving a closing balance of R1.183 billion in irregular expenditure.

The qualified audit opinion of the AG was in part based on an inability to obtain sufficient audit evidence that all irregular expenditure incurred in the 2018/19 and previous years had been properly accounted for. This was due to payments made in contravention of the SCM requirements. The Department also did not evaluate the population for similar instances of non-compliance based on the factors as communicated. Consequently, the AG 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.

 

 

Fruitless and Wasteful Expenditure

The Department had an opening balance of R8.110 million in fruitless and wasteful expenditure at the start of the 2018/19 financial year. During 2018/19, the Department incurred R285 000 in fruitless and wasteful expenditure, which is a decrease from R496 000 in the previous financial year. During 2018/19, R455 000 was resolved and R134 000 transferred to receivables for recovery. At year-end, the Department had a closing balance of R8.302 million in fruitless and wasteful expenditure. This means that the Department has significant historic fruitless and wasteful expenditure that has not yet been cleared. During the year under review, 186 disciplinary steps and liability investigations were launched.

 

Contingent Liabilities/Civil Claims

In 2018/19, the Department allowed for R7.560 billion in contingent liabilities, of which R6.790 billion is for claims against the Department. During 2018/19, R42.090 million was paid in civil claims. As part of actions initiated to curb the increase of civil claims, a Management Intervention Project was initiated during 2016. The project identified 38 root causes, of which many lead to civil claims, including (amongst others) -

  • 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 control and 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.

An out-of-court settlement was reached between the SAPS and those representing the Marikana victims and these payments resulted in more expenditure on civil claims than estimated.

 

  1. Programme Expenditure

At the end of 2018/19, the Department spent R90.428 billion of its Final appropriation of R91.684 billion. At year-end, the Department recorded a material underspending of R1.255 billion.

 

    5.2.1 Programme 1: Administration

The Administration Programme had an Adjusted Appropriation of R19.403 billion in 2018/19, which was decreased with R679.87 million through various in-year Virements. The Final Appropriation was R18.724 billion of which R18.6 billion was spent (99.3%), leaving an amount of R122.6 million unspent. The largest Virements of R658.8 million was made from the Corporate Services sub-programme.

 

Table 2: Appropriation statement: Administration Programme for 2018/19

Sub

programme

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual expenditure

Variance

% Expenditure

Ministry

61 592

(11 399)

50 193

50 193

-

100%

Management

80 921

(11 656)

69 265

69 265

-

100%

Corporate Services

19 129 381

(658 817)

18 472 564

18 349 957

122 607

99.3%

Civilian Secretariat

131 219

0

131 219

131 219

-

100%

Total

19 403 113

(679 872)

18 723 241

18 600 634

122 607

99.3%

                                                                                    Source: 2018/19 SAPS Annual Report

 

The underspending realised, as a result of decreased spending within the implementation of the 7-Point Criminal Justice System (CJS) Plan (more specifically, the Integrated Justice System (IJS) projects), State Information Technology Agency (SITA) service level agreements and hosting, as well as network upgrades within the information technology environment.

 

 5.2.2    Programme 2: Visible Policing 

The VISPOL Programme had a Main Appropriation budget of R46.87 billion at the start of the 2018/19 financial year, which was half (51%) of the total allocation of the Department. During the adjustments period no changes were made to the allocation and the Adjusted Appropriation remained unchanged. However, later in-year adjustments were made for R246.64 million –

  • The allocation of the Crime Prevention sub-programme was increased by a Virement of R194.57, which brought the Final Appropriation to R36.47 billion at year-end.
  • The allocation of the Border Security sub-programme was reduced with R79.64 million to a Final Appropriation of R2.021 million.
  • The Specialised Interventions sub-programme’s budget was increased by a R256.12 million Virement to a Final Appropriation of R4.63 billion. The sub-programme recorded an underspending of R1.68 million. Despite this, the Department recorded 100% expenditure because the amount was so small.

 

Table 3: Appropriation statement: Visible Policing Programme for 2018/19

Sub

programme

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual expenditure

Variance

Crime Prevention

36 278 902

194 576

36 473 478

36 473 478

-

Border Security

2 101 127

(79 640)

2 021 487

2 021 487

-

Specialised Interventions

4 383 690

256 120

4 639 810

4 638 130

1 680

Facilities

4 108 594

(121 411)

3 984 183

3 984 183

-

Total

46 872 313

246 645

47 118 958

47 117 278

1 680

Source: SAPS 2018/19 Annual Report

 

  1. Programme 3: Detective Services 

The Detective Services Programme had a Main Appropriation of R18.811 billion at the start of the 2018/19 financial year. During the adjustments period, R150 million in unspent funds was declared on the budget of the Detective Services for the implementation of the criminal justice system 7-point plan. This was due to projected underspending as the Department was still in the process of requesting Cabinet’s approval to change the project scope for the programme.

 

The declared saving led to an Adjusted Appropriation of R18.661 billion. The Programme’s budget allocation increased by effected virements of R297.6 million throughout the year and had a Final Appropriation of R18.959 billion. At year-end, R17.828 billion was spent leaving R1.131 billion unspent. The AG highlighted the material underspending.

 

All sub-programmes, except the DPCI, underspent its budget allocation for 2018/19. The largest underspending was in the Forensic Science Laboratory sub-programme (R751.35 million underspending), followed by the Criminal Record Centre sub-programme (R263. 78 million underspending) and the Crime Investigations sub-programme (R115.99 million underspending).

 

 

Table 4: Appropriation statement: Detective Services Programme for 2018/19

Sub

programme

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual expenditure

Variance

% Expenditure

Crime Investigations

12 789 920

(18 103)

12 771 817

12 655 818

115 999

99.1%

Criminal Record Centre

2 551 836

77 883

2 629 719

2 365 938

263 781

90%

Forensic Science Laboratory

1 702 384

227 902

1 930 286

1 178 934

751 352

61.1%

Specialised Investigations (DPCI)

1 617 507

9 969

1 627 476

1 627 476

0

100%

Total

18 661 645

297 651

18 959 298

17 828 166

1 131 132

94.0%

Source: SAPS 2018/19 Annual Report

 

5.2.4     Directorate for Priority Crime Investigation (DPCI)

Establishment and mandate

The DPCI was established as an independent Directorate within the SAPS, in terms of Section 17C of the SAPS Act, 1995 (Act No 68 of 1995), as amended. The insert below reflects the establishment and composition of the DPCI, in terms of Section 17C. In terms of Section 17D of the SAPS Act, 1995 (Act No 68 of 1995), the mandate of the DPCI is as follows:

 

(1) The functions of the Directorate are to prevent, combat and investigate —

            (a) National Priority Offences, which in the opinion of the National Head of the     Directorate need to be addressed by the Directorate;

            (Aa) offences referred to in Chapter 2 and Section 34 of the Prevention and Combating   of Corrupt Activities Act, 2004 (Act No 12 of 2004); and

(2) If, during the course of an investigation by the Directorate, evidence of any other crime is detected and the National Head of the Directorate considers it in the interests of justice or in the public interest, he or she may extend the investigation so as to include any offence which he or she suspects to be connected with the subject of the investigation.

Performance

Despite capacity constraints, the DPCI achieved 100% of its seven performance indicators for the 2018/19 financial year. A permanent National Head of the DPCI was appointed in May 2018.

 

DPCI Budget allocation

Since the establishment of the Directorate there has been significant challenges in its reporting. Section 17K of the SAPS Act prescribes clear reporting requirements by the DPCI to Parliament for oversight. It states -

17K (2) The National Commissioner shall include in the annual report to Parliament in terms of section 40 (d) of the Public Finance Management Act, 1999 (Act 1 of 1999), a report in respect of the performance of the Directorate compiled by the National Head of the Directorate as a separate programme.

(2A) The budget report to Parliament shall include a full breakdown of the specific and exclusive budget of the Directorate.

(2B) The National Head of the Directorate shall make a presentation to Parliament on the budget of the Directorate.

 

The section dealing with the DPCI in the 2018/19 Annual Report does not provide a specific and clear breakdown of the budget of the Directorate. Although it is included in the Appropriation Statement of the Department (p. 364 of the Annual Report), the breakdown should be included in the DPCI section for ease of reference and public record.

 

The DPCI received an Adjusted Appropriation of R1.617 billion in 2018/19. An in-year virement of R9.96 million was made to increase the allocation of the DPCI to a Final Appropriation of R1.627 billion at year-end of which 100% was spent. In terms of changes to the budget, the following should be noted –

  • R6.6 million was moved from Goods and services to Households, but a virement of R5.8 million was made back to Goods and services.
  • R8.6 million virement was made to Compensation of employees.

The table below shows the shift and virements to the 2018/19 budget allocation of the DPCI.

 

Table 5: DPCI Budget and expenditure for 2018/19

Sub programme

R’000

Adjusted Appropriation

Shifts

Virement

Final Appropriation

Actual expenditure

Variance

% Expenditure

Current payments

1 563 534

(6 611)

14 456

1 571 379

1 571 379

0

100%

Compensation of employees

1 321 982

0

8 600

1 330 582

1 330 582

0

100%

Goods and services

241 552

(6 611)

5 856

240 797

240 797

0

100%

Transfers and subsidies

12 662

6 611

0

19 273

19 273

0

100%

Provinces and municipalities

1 048

(68)

0

980

980

0

100%

Households

11 614

6 679

0

18 293

18 293

0

100%

Payment for capital assets

41 311

0

(4 487)

36 824

36 824

0

100%

Buildings and other fixed structures

0

0

0

0

0

0

100%

Machinery and equipment

41 311

0

(4 487)

36 824

36 824

0

100%

Total

1 617 507

0

9 969

1 627 476

1 627 476

0

100%

     Source: SAPS 2018/19 Annual Report

 

 

  1. Programme 4: Crime Intelligence 

The Programme received an Adjusted Appropriation of R3.804 billion in 2018/19. During the latter part of the financial year, R77.5 million was move to the Programme, which increased the allocation towards a Final Appropriation of R3.88 billion at year-end. The largest increase was made to the Intelligence and Information Management sub-programme (R54.56 million).

 

Table 6: Appropriation statement: Crime Intelligence Programme for 2018/19

Sub

programme

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual expenditure

Crime Intelligence Operations

1 567 498

22 956

1 590 454

1 590 454

Intelligence and Information Management

2 237 215

54 566

2 291 781

2 291 781

Total

3 804 713

77 522

3 882 235

3 882 235

      Source: SAPS 2018/19 Annual Report

 

  1. Programme 5: Protection and Security Services 

The Protection and Security Services Programme received an Adjusted Appropriation of R2.942 billion in 2018/19. Through the year, the allocation of the Programme increased with R58.054 million (virements), of which R45 million was for VIP Protection and R19.2 million to Static and Mobile Security. Most of funds moved to the VIP Protection sub-programme came from the Government Security Regulator (R27.5 million). This sub-programme received a main allocation of R112.1 million at the start of the 2018/19 financial year, which decreased to R82.2 million at the end of the financial year.

 

Table 7: Appropriation statement: Protection and Security Services Programme 2018/19

Sub programme

R’000

Adjusted Appropriation

Virement

Final Appropriation

Actual expenditure

VIP Protection

1 528 343

45 030

1 573 373

1 573 373

Static and Mobile Security

1 062 132

19 283

1 081 415

1 081 415

Government Security Regulator

84 676

(2 425)

82 224

82 224

Operational Support

267 224

(3 807)

263 417

263 417

Total

2 942 375

58 054

3 000 429

3 000 429

Source: SAPS 2018/19 Annual Report

Increased spending on compensation of employees necessitated the virement (1.97% of the total). Compensation of employees contributes to a weight of more than 89% of the Protection and Security Services Programme. Budget reductions on compensation of employees introduced in a previous MTEF, overtime payable to, regrading of protectors and housing rental allowance delinked and extended to spouses, in terms of a PSCBC agreement, contributed towards the compensation pressures. National Treasury’s approval was obtained to shift funding from perceived underperforming projects in other programmes to compensation of employees in Programme 5.

 

 

  1. SERVICE DELIVERY AND PERFORMANCE OVERVIEW 2018/19

 

  1. Overall performance

 

The overall performance of the Department on defined performance targets declined from 78.3% in 2017/18 to an achievement rate of 74.1% in 2018/19. The programme performance of three of the five SAPS programmes showed a decline in attaining performance targets. The Administration, Visible Policing and the Protection and Security Services programmes all showed regression in their performance. The Detective Services and Crime Intelligence programmes showed a slight improvement on the previous year’s achievement

The Administration programme spent 95.8% of its budget allocation resulting in a net underspending of 3.5%, Visible Policing programme marginally overspent by 0.35%, the Detectives programme overspent by 1.59%, the Crime Intelligence programme by 2.04% and the Protection and Security programme overspent by 1.97%.

The point should be made that the programme performance does not follow the financial spending and budget on its programme. The focus of oversight should be placed on the quality of performance indicators and targets and whether these measure an improvement in service delivery.

 

  1. Programme 1: Administration

The Administration programme has achieved 20 out of 30 performance targets, giving it an achievement rate of 66.7%. This is a significant decrease from 79% in 2017/18 to 66.7% in 2018/19.

In 2018/19, the key (and historic) areas of underperformance in the Administration Programme was on capital works and maintenance projects. In terms of capital works projects, four out of 12 projects were completed and 38 from 85 maintenance projects completed. None of the four targeted detention facilities was maintained.

Another key area relates to Information Systems (IS) and Information Technology and Communication (ITC) infrastructure. In 2018/19, the Department aimed to enhance IS and ICT to support the business objectives of the SAPS, however –

  • The planned target to achieve 95% of ICT infrastructure deliverables was not achieved (73% actual achieved),
  • The planned target to have 85% of IS Solutions developed, implemented and maintained was not achieved (actual achievement was 78%); and
  • The planned target to have 85% of IS/ICT governance deliverables was not achieved (actual achievement was 78%).

 

The underperformance on IS/ICT project deliverables hampers the SAPS to police smarter and prohibits the SAPS to fully engage in the Fourth Industrial Revolution.

The impact of SAPS’s dependence on external stakeholders, like DPW and SITA must be addressed as a matter of urgency and solutions found. But, it should be noted that evidence-based research done by the Parliamentary Research Unit shows that delays in the completion of capital works projects remain constant regardless of a police station being devolved from DPW or not. In fact, police stations built by the SAPS often have longer time delays and higher cost escalations.

The Programme was unable to finalise the targeted 90% of firearm applications within 90 working days. At year-end, 70.31% (69 770 from 99 236) of applications received were finalised. The underperformance was ascribed to the slowness of the ICT system during peak-hours.

The underspending realised, as a result of decreased spending within the implementation of the 7-Point Criminal Justice System (CJS) Plan (more specifically, the Integrated Justice System (IJS) projects), State Information Technology Agency (SITA) service level agreements and hosting, as well as network upgrades within the information technology environment.

 

            6.3.1     Human Resource Management

The SAPS staff establishment and human resources exceeded the set target of maintaining a minimum workforce of 98%, in terms of the approved establishment which was 192 431. At the end of the financial year on 31 March 2019, the SAPS maintained 99.92% of the target and had a staff establishment of 192 277.

The following facts of the Human Resource Management of the SAPS pertains:

  • The Department managed to maintain a staff compliment of 99,92% or 192 277, in relation to the planned target of 192 431.
  • During the 2018/19 financial year, the Department spent R71.28 billion on Compensation of employees.
  • During 2018/2019, the average employee turnover rate was 3,0%. This represents a marginal increase from 2,7%, in 2017/2018. The loss of critical skills is monitored, on a monthly basis, by means of workforce analysis by the respective environments, to direct proactive interventions. The filling of critical vacancies within six months after the post became vacant, is prioritised.
  • Resignations contributed significantly towards the number of exits recorded in the 2018/2019 financial year, followed by retirements. Resignations increased from 2 039, in 2017/2018, to 2 180, in 2018/2019.
  • Retirements increased from 1 412, in 2017/2018, to 1 781, in 2018/2019.
  • Sick and incapacity leave days taken by employees, during January 2018 to December 2018 decreased with 149 942 days (8,9%), from 1 676 391 days, during January 2017 to December 2017, to 1 526 449 days, during January 2018 to December 2018.

 

In 2018/19, the Department had a fixed establishment of 192 277 employees, of which 150 855 are SAPS Act employees and 41 22 are Public Service Act employees. Compared to the previous financial year’s establishment of 193 297, the Department’s current fixed establishment decreased.

 

Over the last six years (2013/14 – 2018/19), the police/population ratio increased year-on-year. The generally accepted benchmark is one police officer to 450 people, as such, the SAPS is within the benchmark. However, the police/population ratio is highly dependent on the crime level of an individual country and one size (or ratio) does not fit all.

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 383 citizens (1:383) in 2018/19. The table below illustrates the changes in police/pollution ratio between 2013/14 and 2018/19.

 

Table 8: Changes in the police/population ration over five years

Financial year

2013/14

2014/15

2015/16

201617

2017/18

2018/19

Fixed Establishment

194 852

193 692

194 730

194 605

193 297

192 277

Police/Population ratio

1:346

1:358

1:362

1:369

1:375

1:383

Source: SAPS 2018/19 Annual Report

 

In 2018/19, 5 742 employees left the Department, of which 2 180 employees resigned, 1 781 employees retired and 909 employees passed away.

In 2017/18, Section 35 terminations were awarded to three Lieutenant Generals (one less than the previous financial year). The amount paid by SAPS to the employees amounted to R12 948 075.20 (R12.9 million). The payment included leave-gratuity, pro-rata service bonuses, severance package and notice period.

 

Two Regulation 45 appointments/promotions were made in 2018/19. One promotion was from a Constable to a Warrant Officer and the other from a Warrant Officer to a Captain. 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. This section of the Employment Regulations has been an area of serious contention in the past. 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.

 

  1. Programme 2: Visible Policing

The Visible Policing programme is the biggest programme in the Department and has the biggest budget. The Visible Policing programme achievement on performance indicators decreased from 83% in 2017/18 to 73.5% in 2018/19. While the Border Security and Specialised Interventions Sub-programmes achieved 100% of its predetermined performance targets, the Crime Prevention Sub-programme only achieved 14 from 23 targets (69.8% achievement rate).

 

The performance of the Visible Policing (VISPOL) Programme should be read together with the 2018/19 crime statistics, as crime prevention falls within the ambit of the programme. Overall, a 0.7% increase has been recorded on the 17-Community Reported Serious Crimes in 2018/19.

Target to reduce reported serious crimes, contact crimes, crimes against women, crimes against children and contact-related crimes could not be realised, as increases were recorded in these categories of crime.

The target to increase the number of crimes for unlawful possession and dealing in drugs by 47.36% to 480 385 cases was not achieved.

The VISPOL Programme aimed to maintain the number of stolen/robbed vehicles recovered at 36 548, but this was not realised. At year-end, 28 418 vehicles were recovered (8 130 less). The underperformance is based on inadequate intelligence-driven operations.

The Programme was unable to finalise the targeted 90% of firearm applications within 90 working days. At year-end, 70.31% (69 770 from 99 236) of applications received were finalised. The underperformance was ascribed to the slowness of the ICT system during peak-hours.

 

  1.  Detective Services programme

The performance of the Detective Services Programme increased from 74% in 2017/18 to 82.1%. The Programme achieved 32 from 39 performance targets. The Specialised Investigations sub-programme houses the Directorate for Priority Crime Investigation (DPCI)(Hawks). The DPCI achieved 100% of its predetermined performance targets.

The Crime Investigations sub-programme underperformed on four performance targets, these were –

  • Target to achieve a detection rate of 37% for serious crime was not realised (actual achievement was 36.37%)
  • Target to achieve a detection rate of 55% for contact crime was not realised (actual achievement was 50.58%)
  • Target to achieve a detection rate of 70% for crimes committed against children (under the age of 18) was not realised (actual achievement was 69.19%)
  • Target to achieve a detection rate of 36.75% for other serious crimes was not realised (actual achievement was 36.16%)

 

The Criminal Record Centre sub-programme achieved 100% of predetermined performance targets.

The Forensic Science Laboratory sub-programme underperformed on three performance targets, including –

  • Target to finalise 75% of routine case exhibits (entries) within 35 calendar days was not realised (actual achievement was 71.92%)
  • Target to finalise 95% of Ballistics (IBIS) Intelligence case exhibits was not realised (actual achievement was 90.66%)
  • Target to finalise 80% of DNA intelligence cases within 90 calendar days was not realised (actual achievement was 79.58%)

 

            6.6 Directorate for Priority Crimes Investigation

Despite capacity constraints, the DPCI achieved 100% of its seven performance indicators for the 2018/19 financial year. A permanent National Head of the DPCI was appointed in May 2018.

 

            6.6.1     Specialised units

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 South African Police Service (SAPS) was conducting 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.

 

            6.6.2     Personnel

In 2009, a fixed establishment of 3 366 was granted to the Directorate, from which only 2 517 personnel were appointed, which is a deficit of 25,2%. Post an evaluation by the National Head and the Organisational Development Component of the SAPS, it was determined that a fixed establishment of 5 332 is required, in order to optimally fulfil the mandate of the Directorate.

 

            6.6.3     Workload

Approximately 18 086 case dockets with an estimated 83 736 charges are being investigated by the Directorate. These investigations are against approximately 17 338 accused persons. As at 31 March 2019, approximately 1 800 dockets were submitted to the NPA for decision.

 

            6.6.4     Office accommodation.

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

1) Western Cape Province

  • Pinnacle Building (Bellville): A monthly 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.

2) North West Province VM Building (Klerksdorp): Expiry of lease contract and insufficient office accommodation.

3) Eastern Cape Province (Mthatha): Disruptive renovations.

4) Limpopo Province (106 Hans van Rensburg, 70 Grobler Street, 21 Market Street and Thoyandou Office): Insufficient office accommodation.

5) 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.

 

            6.7 Crime Intelligence programme

 The performance of the Crime Intelligence Programme declined compared to the previous financial year. In 2017/18, the Programme achieved 73% compared to 66.6% in 2018/19. The Programme achieved 12 from 18 performance targets. Despite the appointment of a permanent Divisional Head during the period under review, performance did not improve. The Intelligence and Information Management sub-programme only realised half of its performance targets.

Significant concerns were raised by the Committee on the lack of Crime Intelligence in dealing decisively with information and reacting proactively to security threats that lead to instability and not having a positive impact on crime reduction.

The Programme was unable to conduct network operations to infiltrate criminal groupings and collect intelligence on priority threats. During 2018/19, 311 network operations were terminated in relation to 879 identified. This is a deviation of 64.63% of the planned target.

The Programme was unable to operationalise 39.68% of proactive intelligence reports. During 2018/19, 48 517 from 80 428 reports were operationalised. This is ascribed to inadequate application of internal control measures within the Department. Furthermore, the Programme failed to operationalise more than half (56.1%) of reactive intelligence reports, which was also ascribed to inadequate application of internal controls.

 

The performance targets on the number of global threat assessments and persons of interest report generated by the Programme is based on reports received by the SAPS Liaison Officers. In 2018/19, one less report was received in both areas, which led to the underperformance.

 

 

            6.8   Programme 5: Protection and Security Services

 

The performance of the Protection and Security Services Programme decreased from 86% in 2017/18 to 78.6% in 2018/19. In 2018/19, 11 from 14 performance targets were achieved. The Protection and Security Services component achieved 75% of its targets, while the Presidential Protection Services component achieved 66.6% of its performance targets.

The underperformance of the Presidential Protection Services components is due to only nine from 14 National Key Points (NKP) that were evaluated. One NKP is on sale and the process of declassifying is underway. One NKP was not assessed due to the lack of DPW implementing the SAPS security recommendations.

The underperformance in the Protection and Security Services component was due to three static security breaches at government installations and VIP residences. These breaches included -

  • Housebreaking at the residence of the Deputy Minister of Trade and Industry;
  • Shooting incident at the Parliamentary precinct; and
  • Shooting at the Pan African Parliament, Midrand.

 

  1. COMMITTEE Observations

 

The Committee made the following observations:

 

  1. INTERNAL AND EXTERNAL AUDITS

 

Adverse audit findings:  During 2017/18 financial year, the Committee expressed its misgivings about the Department’s ability to turn the adverse audit opinion around and devoted its entire session to the financial management and response to the AGSA and Audit Committee findings and recommendations. During the 2018/19 financial year, the SAPS has again attained a qualified audit opinion. The Committee was addressed by the Audit Committee who agreed with the AGSA findings. The Committee noted that there were elements of disjuncture between the SAPS Audit Committee and the AGSA as a result of the apparent unwillingness of the SAPS management to authorize a data dump for the AGSA to verify the authenticity of transactions.

 

Full Disclosure on Irregular Expenditure: The Committee noted that the AGSA has stated that it doubted the SAPS has made full disclosure with respect to all Irregular Expenditure it has incurred. This is concerning in view of the fact that the AGSA noted in the prior financial year (2017/18) that the Irregular Expenditure was not a full disclosure.

 

Consequence Management on Irregular Expenditure: The Committee wanted to know in view of the astronomical amount for irregular expenditure, whether the SAPS would be applying consequence management. The Committee also questioned the AGSA about the AGSA’s new power to make remedial action recommendations and submit a letter of debt. The Committee was concerned that the SAPS is not implementing the AGSA recommendations for a third year in row.

 

IJS Revamp Spending: The Committee raised concern about the report of the AGSA which stated that the SAPS did not apply the necessary financial controls with respect to spending for projects in the Integrated Justice System. Of the 13 projects, the SAPS did not achieve 11 and made changes to the projects without the approval of the IJS Board. It appeared to the AGSA that the SAPS operated autonomously and did not subject themselves to scrutiny.

 

SAPS Audit Committee: The Committee noted that the term of the SAPS Audit Committee had come to an end in August 2018 and was concerned about the fact that Audit Committee members were appointed on a month to month basis.  Although SAPS responded by saying that the adverts were placed for a new Audit Committee, the Committee was not satisfied that it operated for a year without a fully constituted Audit Committee.  A new Audit Committee will be appointed by 1 November 2019.

 

Combined Assurance Model: The Committee noted that the SAPS Audit Committee has supported the re-establishment of the Combined Assurance model as previously requested. One of the reasons for the disclaimer according to the Audit Committee, is that the department’s procurement and supply chain management systems are outdated and cannot detect irregular expenditure.  

 

Enterprise Risk Management Committee: The Committee noted the report of the Audit Committee that the ERMC, although having been resuscitated, has only had one meeting. Members expressed their misgivings that the Committee was reporting directly to the Accounting Officer and not to the Chief Financial Officer. The SAPS was urged by the Committee to make sure that the Chief Risk Practitioner is appointed and that the ERMC meets regularly as required.

 

Supply Chain Management (SCM): The Committee expressed its concerns about the significant risk the SCM poses to the Department with respect to its management of procurement processes. It was clear that the recommendations from the previous Committee Budget Review and Recommendation Report was not implemented. Members of the Committee noted that the AGSA was not able to audit R9.3 million because of missing information from SCM.

 

Data retrieval for AGSA: The Committee noted that the was a difference of opinion between the request of the AGSA for the SAPS to perform a data transfer and the response of the SAPS Audit Committee who indicated that it would require the CAS system to shut down for take three days to make it the data transfer possible as it involve millions of transactions. The Committee noted that the information was required for the AGSA to verify the transactions.

 

 

  1. ADMINISTRATION PROGRAMME

 

Performance management information: The Committee noted the question of the reliability and accuracy of the performance management information. The AGSA noted that the Crime Intelligence division did not have adequate record keeping system as it was highly dependent on manual systems in the CI environment. The Committee noted that the SAPS has a comprehensive readiness plan in which they respond to the AGSA and the SAPS has asked all Divisional Commissioners to respond by 21 October 2019.

 

Supply Chain Management: The Department reported that Supply Chain Management and Technology Management sections were undergoing a process of corporate renewal and that the FDA contracts are being disposed of. The Committee noted that the SAPS as per the SCOPA decisions, would take over four ICT systems and the process is being ratified by National Treasury. The Committee demanded that the SAPS display robust leadership with the suppliers as non-delivery of supplies directly affects service delivery. There had to consequences for suppliers who do not deliver.

 

Data migration: The Committee noted the response by the SAPS that data migration to the AGSA has inherent security risks associated with it. However, the Committee was of the opinion that the data should be made available to AGSA from SITA. 

 

Disclosure of SITA Network Assets: The Committee noted the third consecutive finding by the AGSA on the non-disclosure of SITA network assets on the Asset Register. The Committee notes that no remedial action was taken and again this resulted in a qualification from the AGSA. The Committee must place on record that it requires of the SAPS to take seriously the findings of the AGSA and to implement the recommendations. The Committee noted that it will meet with SITA to address this matter.

 

Chief Risk Officer: The Committee noted that the Department will appoint a Chief Risk Officer by 1 November 2019 and this will assist with the Department of implementing an Enterprise Risk Management Strategy.

 

Capital Works programme: The Committee expressed concern over the fact that the Department only were able to identify four building projects in the Capital Works programme. It was concerning that not one of the projects were completed and at the current pace, it will take a very long time for the Department to complete. The Committee urged the SAPS to do proper project planning and execute it timeously. The Committee, while noting the challenges faced by the SAPS with partners, called on the SAPS to make the necessary arrangements to ensure that police stations and mobile police stations are provided, especially in areas that require them. In addition, the Committee noted the fact that the SAPS have prioritised upgrading at the cells at police stations, when police stations require upgrading as there was a police station without a roof.

 

The Committee questioned whether there was a problem with the Department of Public Works with provision of services and wanted to know whether the Department of Defence and Military Veterans could be used to complete the buildings.  

 

Co-operation on Cybercrime: The Committee appealed to the SAPS management to invest its resources in fighting cybercrime through co-operation with other departments. It implored the SAPS to go to London to do another study on cyber-crime and the methods used to fight it.  The Committee asked the SAPS to prepare a document as to what the Committee could do to assist the Department in fighting crime and make it available. The Committee pledged to assist the SAPS by meeting the Department of Home Affairs to share data in order to make the fight against crime more effective.

 

Employment of people with disabilities: The Committee noted that the SAPS did not reach the set target of 2% employment of people with disabilities. The Committee urged the SAPS to do more to make it possible for people with disabilities to join the ranks of the SAPS. It was not good enough for the Department to say it did not reach its target when disabled people are victims of crime themselves. The Committee urged the Department to meet with non-governmental organisations to make it possible.

 

Quarterly Monitoring of Underspending: The Committee noted that it will engaged in rigorous quarterly monitoring of quarterly reports with respect to underspending of the budget.

 

 

  1. VISIBLE POLICING PROGRAMME

 

Community Policing Forums (CPFs): The Committee noted that the CPFs are essential partners in the fight against crime.  The National Drug Master plan is designed to deal with the scourge of drugs in the community and amongst the youth of the country. The Committee urged the SAPS to include the CPFs in the planning of awareness programmes to ensure that the communities are engaged to assist in the fight against crime. The Department was also urged to include the CPFs in its outreach programmes.

 

CPF and Neighbourhood Watches (NHW): The Committee questioned the inclusivity and legal framework for the operation of the CPFs and structures such as the NHWs. The Department responded by indicating that the CPF is a police-led and recognised structure and takes precedence. The NHW only exist within the framework of the CPF. A provincial community police strategy workshop will be held in the Western Cape which will clarify the policy framework which resort under the umbrella of the national community policing policy framework.

 

Victim friendly rooms (VFRs): The Committee questioned the provision of Victim Friendly Rooms at police stations across the country. The Committee wanted answers on how many VFRs there were at police stations, whether they equipped with human and material resources to provide assistance to victims and survivors of crime. Members were concerned about the state of such rooms as victims of rape and sexual abuse required privacy when relating their cases. The Department reported that 984 out 1140 stations has had VFS training of members

 

Reservists: The Committee questioned whether the SAPS still wanted to have reservists in view of the fact that the number of reservists has decreased to 10 144. Reservists were essential in fighting crime and the Committee wanted to know if there was a different training capacity required to fight crime. The National Commissioner reported that the Department viewed the reservists as critical and he had issued call up instructions and R15 million was set aside for the maximum recruitment drive.     

 

Police Firearms: The Committee was surprised to hear from the SAPS that it firearms issued to members from stock was not dot-peen marked. A total number of 5 269 pistols (3 745) and R5 Assault Rifles (1 524) were distributed from the buffer stock, but were not dot-peen marked or Integrated Ballistic Identification System (IBIS) tested. This serious cause for concern and the Committee questioned how the SAPS could have issued these firearms when they were not IBIS tested or dot-peen marked.

 

Firearms Control: The Committee raised serious concerns about the Central Firearms Registry’s ability to effectively process firearm applications. The Committee noted that the North West Province provided a directive on renewal of firearm licenses, which was not in line with other provinces. The training of Designated Firearm Officers (DFO’s) was questioned as they are providing different directives in different provinces. Members also questioned what happens with people who did not apply in time for their licenses. The SAPS pointed out that it had a turnaround strategy dealing with firearms and the CFR and would require more time to present it to the Committee. The SAPS reported that a new instruction will be put out to all DFO’s in a few days’ time.  The DFOs are trained and capacitated.

 

High profile cases: The Committee expressed its concern that in high profile cases where the accused were business people, lawyers and a well- known person, the police treated the accused differently. These individuals in cases of rape for example comes with high powered lawyers and the SAPS do not in some cases, open cases against them. This was of serious concern to the Committee and asked that the Department apply equal treatment to all the accused, despite their social class or standing.

 

Crime Pattern Analysis: Members challenged how the SAPS was compiling and using the crime pattern analysis to deploy its resources to fight crime. Members pointed to the fact that Brown’s Street in Mamelodi is well known for being where you can buy the drug Nyaope, and the fact that this is still happening despite the police knowing about it, shows that the crime pattern analysis is not used by SAPS.

 

School Safety: The Committee pointed out that school safety was critical to ensure a healthy learning and teaching environment. The SAPS has pointed out that it has deployed police officers to all schools and the Committee indicated that it did not see the results of this as violence and shooting were still happening at schools. The Committee asked that the SAPS provide the names of schools where they deployed members.

 

Top 30 Stations for violent crime: The Committee noted its serious concern that there appear to be little movement on the stations that are on the top 30 crime stations. In order to see progress in the fight against crime, the SAPS ought to be working towards a situation where some of the stations are removed from the list. The SAPS reported that they have instructed their crime statistics practitioners to convene a round-table discussion and get to the root causes. The Committee noted that the SAPS reported that there are also top 30 and top 40 stations in the provinces and that a few stations have been removed from the list. The focus of the SAPS is to remove them from the list.

 

Foreigners and crime:  Members raised concerns about the number of foreign nationals involved in crime. They wanted answers as to how many foreigners have entered the country and whether the SAPS was managing the situation. The SAPS reported that they have compiled such figures, but have provided it to the International Relations Minister when requested. They did not want to divulge such figures publicly given the xenophobic outbursts.

 

Rural Safety strategy: The Committee noted that the Department was launching a new Rural Safety Strategy in Limpopo province. The Committee was invited to attend.  Members of the Committee thanked the SAPS for its commitment to work towards rural safety and involving local community members in the initiative.

 

Provincial Reports: The Committee noted that there must be regular reports from the Provincial Commissioners about the state of crime in their provinces, budgets, spending patterns and attainment of key performance areas (KPAs). The Committee requires a closed report of all their KPAs not attained and the reasons for not reaching quarterly targets.    

 

 

  1. DETECTIVE SERVICES PROGRAMME

 

Detection rates for violent crime: The Committee raised concern about the low target set for detection of serious crime and felt that it was far too low to make a meaningful dent in the high crime rates. The Committee called on the SAPS to review the detection rates.

 

Results of toxicology tests: The Committee was not satisfied that the SAPS is waiting between 1-10 years for toxicology reports in cases of violent crime. This was unacceptable to the Committee and the department was asked to speed up the results by drastically reducing the waiting period. The SAPS responded by indicating that toxicology reports for blood results is normally handled by the Department of Health and they interact with the department. The Department went on to explain that that there are backlogs with inquest dockets and long winded investigations takes time. As far as DNA analysis are concerned, one machine costs R33 million for only one part of the evidence collection chain.

 

Availability of forensic science laboratory consumables (DNA kits): The Committee noted the shortage of DNA rape kits at police stations and raised its concerns with respect to victims of crime. The Department responded that plans have been put in place to confirm that all police stations have an adequate number of kits currently available.

 

Involvement of parolees in crime: The Committee heard the department indicate that parolees are involved in further crimes and that in one case, a convicted offender was sentenced to 15 years in prison for a crime. He was released in parole and shot another man who drive into his wall during his parole period. This was a huge concern to the SAPS as they are now experiencing problems with parolees returning to crime.

 

Directorate for Priority Crimes Investigation (DPCI): The Committee noted that the DPCI was understaffed and was operating at 50% capacity in its investigations. Despite this it achieved 100% of its targets. The Committee welcomed the performance and indicated that the DPCI must be fully resourced in order to make a meaningful contribution to reducing organised crime and corruption. The SAPS responded that they were focusing on repetitive practices with respect to illicit money flows. The DPCI needs judicial discretion as they have to prove extenuating circumstances in the state capture investigations.

 

High profile investigations: The Committee questioned the progress in the high profile investigations such as the Steinhoff investigation. The DPCI responded by noting that they still have to appoint a chartered accountant to the investigations team.

           

 

  1. CRIME INTELLIGENCE PROGRAMME

 

Low Targets: The Committee questioned the efficacy of the Crime Intelligence if its targets were as low as 1/3 of their capacity. It was made clear that the situation was unwelcome and that the situation should change as it was expected for the big criminal syndicates to be investigated and brought down. The Department responded by saying that it has identified 879 syndicates which is being investigated. It was pointed out that the Annual Report was unfortunate in only noting areas of under-achievement. It takes three to six months to do the investigation and they would continue with this year’s financial term investigations. Crime Intelligence will stop all registrations by end of November to prevent the carryover and they are responsible for identifying threats through early warning systems. Part of this has been working with other units and they were able to issue over 40 000 early warnings on possible crimes. They are now following up with the units how they processed the early warning systems. 

 

Vetting: The Committee indicated that the vetting of personnel must be enhanced. The Committee also asked that Crime Intelligence consider vetting the members of the CPFs.

 

 

  1. PROTECTION AND SECURITY SERVICES PROGRAMME

 

Security at Parliament: The Committee questioned how firearms were smuggled into the parliamentary precinct and why it was undetected that led to the death of a parliamentary staff member.

 

8.         COMMITTEE Recommendations

 

The Committee recommends the following: 

  1. The SAPS must urgently implement its Audit Action plan to address the qualified audit opinion. The SAPS must report on a quarterly basis to the Committee on implementation progress.
  2. National Commissioner must meet with the Audit Committee on a quarterly basis. This responsibility should not be delegated to Deputy National Commissioners.
  3. The SAPS must make full disclosure with respect to all Irregular Expenditure to the AGSA. 
  4. The SAPS should implement consequence management for those involved and authorised Irregular Expenditure.
  5. The SAPS must provide a full report on why it did not implement the eleven IJS Revamp projects.         
  6. The SAPS must appoint a new Audit Committee and it should be in place not later than 1 November 2019.
  7. The Enterprise Risk Management Committee must meet at least four times every year and must report to the CFO and the National Commissioner.
  8. The SAPS must appoint a Chief Risk Officer before the end of the financial year.
  9. The SAPS must re-establish the Combined Assurance Model to mitigate the outdated procurement and supply chain management systems that did not pick up irregular expenditure.
  10. The SAPS must urgently revise the Supply Chain management systems and make the necessary ICT changes that would allow it flag suspicious procurement processes. A review of performance indicators and target must be prioritised to ensure that they reflect Departmental performance and encourage service delivery.
  11. The Department should find ways and means to provide the required data to the AGSA in order for them to verify the accuracy of transactions without compromising the security of the data held by the SAPS. The SAPS should negotiate with SITA and the AGSA for a smooth data retrieval process without closing down the CAS system.

 

 

 

ADMINISTRATION PROGRAMME 

  1. The Department should provide the AGSA with all the required information in order to ensure the accuracy and reliability of the performance management system by end of October 2019.
  2. The Department should display robust leadership with suppliers who do not meet delivery deadlines and end contracts, especially those relating to ICT contracts. The Committee supports the SAPS in taking over the four ICT contracts previously held by FDA.    
  3. The SAPS should take responsibility for the fact that it received a disclaimer from the AGSA on the non-disclosure of network assets. The Committee recommends that consequence management must be applied to the SAPS personnel who do not implement the recommendations of the AGSA.
  4. The Department should prioritise the Capital works building programme and complete the incomplete building projects. The Department should apply consequence management for project managers who do not oversee the progress of the projects.
  5. The Department should investigate using the Department of Defence and Military Veterans to complete building projects that have stalled.
  6. The Department should meet with non-governmental organisations to source people with disabilities in order to achieve its target of a 2% employment.
  7. The Department should co-operate with other government departments on cybercrime and research what the standards of other countries are dealing with cybercrime as it poses a real threat to the country. The Committee will meet with the Department of Home Affairs to consider the integration of the databases of the two departments.
  8. The Department must compile a document that the indicates what the Committee could do to assist the SAPS to fight crime.

 

VISIBLE POLICING PROGRAMME 

 

  1. The Department must include community police forums in all its outreach and awareness planning and events.
  2. The Department must work with the Civilian Secretariat for Police Services to finalise the role of Neighbourhood watches within the CPF. The Department must assist in reducing the tensions between NHWs and CPFs.
  3.  The Department must provide and equip all victim friendly rooms with required equipment and staffing resources, particularly community counsellors.
  4. The SAPS should recruit more reservists to assist in the fight against crime.
  5. The Department should make sure that all police stock firearms must be dot-peen marked and sent for ballistic testing before being issued to members. All the firearms not dot-peen marked and issued should retrieved from members and the firearms must be dot-peen marked and sent for ballistic testing before being re-issued.
  6. The Department should make its turnaround plan for the Central Firearms Registry available to the Committee and present on it.
  7. The Department should reduce the number of stations on the Top 30 station list and move towards permanently removing them from such a list. The Department requires solid action plans for each of the stations listed on the Top 30 station list.  
  8. The Department must reconsider how it uses the crime pattern analysis and deployment of resources as the drug dealing in Brown Road in Mamelodi still continues.
  9. The Department must make available the list of all the schools where police officers have been deployed around the country.
  10. The Committee welcomed the re-launch of the Rural Safety Strategy.

 

DETECTIVES PROGRAMME

  1. The Department must review the way high profile cases are treated from an investigative process. The Committee noted that victims of crime are not considered when high profile individuals are accused of rape. The Department must make sure that complainants are treated with due care and all accused must treated equally, and not receive preferential treatment due to their social standing or public status.     
  2. The Department must review the low detection rates set as targets for the detectives. The detection rates are too low and require upward revision if there is to be a significant dent in crime and if the President’s call for halving of violent crime is to be implemented.
  3. The Department must speed up the resources to make toxicology results available in a far shorter time. The Department must develop an action plan after meeting with the department of health in this regard.
  4. The Department must take all available measures to make sure that all police stations have DNA rape kits.
  5. The Department must meet with its partners in Correctional Services and the Justice and Correctional Services Department to consider strategies to deal with parolees getting involved in crimes.
  6. The Department should speed up the Steinhoff investigation by appointing a Chartered accountant to the investigative team. The Department must start processing the Zondo Commission investigations.
  7. The DPCI must fill all outstanding vacancies in its staff establishment.

 

CRIME INTELLIGENCE

  1. The Department must address the very targets in the crime intelligence environment with a view of moving it upwards.
  2. The Department must make preparations implement vetting of CPF executive committees.

 

PROTECTION AND SECURITY SERVICES PROGRAMME

  1. The Department should provide a review of the security procedures at National Key-Points such as Parliament in view of the shooting of one of the staff members who was able to smuggle a firearm onto the premises.

 

 

  1. CONCLUSION

 

The Committee emphasised the need for the SAPS to improve its audit outcomes and welcomed the audit action response plan of the Department. The Committee pledged to hold the Department to quarterly meetings where it will account for its implementation of such audit action plans. The Committee pledged to work closely with the SAPS management to assist with the Department receiving a clean audit in the next financial year.

 

Report to be considered.

 

 

Documents

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