ATC210511: Report of the Portfolio Committee on Sport, Arts and Culture on Budget Vote 37: Department of Sport, Arts and Culture, dated 11 May 2021

Sports, Arts and Culture

Report of the Portfolio Committee on Sport, Arts and Culture on Budget Vote 37: Department of Sport, Arts and Culture, dated 11 May 2021

 

The Portfolio Committee on Sport, Arts and Culture (hereinafter referred to as “the Committee”), having considered the2019/20 – 2024/25 Strategic Plan, the 2021/22Annual Performance Plan (APP), and the budget of the Department of Sport, Arts and Culture, Vote 37, reports as follows:

                                                                                                       

  1. Introduction

Section 42(3) of the Constitution of the Republic of South Africa, 1996 bestows the oversight function over the national executive to the National Assembly (NA). The Committee considered the 2021/22 budget of the Department of Sport, Arts and Culture (DSAC) as part of its oversight function over the Department as mandated by Public Finance Management Act (Act No 1 of 1999) and Money Bills Amendment Procedure and Related Matters Act (Act No 9 of 2009). The Department briefed the Committee on its 2021/22 budget and 2021/22 APP on 04 May 2021.

 

The 2020/21 financial year is characterised by minimising the effects of the COVID-19 pandemic on the economy. The overarching focus for this financial year is to renew the economy and restore public finances, thus medium-term fiscal policy focuses on:

  • extending temporary support in response to COVID-19;
  • narrowing the budget deficit and stabilising debt; and
  • exercising continued restraint in non-interest expenditure growth, while improving the composition of expenditure.

 

This Vote 37: Sport, Arts and Culture budget vote is presented at a time when the effects of the COVID-19 pandemic are extremely pronounced.The pandemic has had a significant adverse impact on the Sport, Arts and Culture (SAC) sector due to the many restrictions placed on the movement and gatherings of people during the lockdown. Lockdowns across the world led to the cancellation of sporting and cultural events, such as athletic meetings, concerts and theatre performances. Venues such as stadiums, museums, libraries, and cultural/recreational centres were forced to close. Domestic and international travel restrictions imposed by most countries meant that sports and cultural tourism came to a standstill. This led to professionals in the SAC sector being severely affected by lost job opportunities as well as the termination of jobs that had already been planned and agreed to. These extreme, but unavoidable, measures affected the livelihoods of performers, visual artists, museum and library personnel, writers, journalists, athletes, coaches and all the associated trades that support them.

 

Through budgetary realignments, the Department has responded to the pandemic and has implemented several interventions, mainly in the form of relief funds, specifically geared towards bringing relief for the SAC sector to retain jobs and create new employment opportunities, as per the national drive. These have, and continue to happen alongside the implementation of the Mzansi Golden Economy (MGE) Strategyand support given to athletes through the scientific support programme and sports academies.

 

In addition to responding to a global pandemic, the Departmentis in the process of ensuring a successful merger. In a presentation to the Committee on 16 March 2021, the Department provided an overview of the six work streams tasked with working on the merger. These include Human Resource (HR) Management, Organisational Design, Labour Relations, Change Management;Infrastructure;Finance;Information Technology (IT); Legal Services; andCommunications and Marketing.At the time of the presentation, most key milestones set for each of the work streams either had been achieved, or were in progress and on schedule. The only two milestones that were running behind schedule were IT work stream projects that included the relocation from Regent Building to VWL Building (Sechaba House) because of delays in the physical relocation of staff and the review of Information and Communication Technologies (ICT) policies.

 

The purpose of this document, therefore, is to table the Committee report after scrutiny of the budget allocated to Vote 37: Sport, Arts and Culture in the 2021 Estimates of National Expenditure (ENE). This Budget Report thus provides a comprehensive analysis of the Department’s allocated budget.

 

  1. Purpose of the Budget Vote:37

The purpose of the Vote is to provide an enabling environment for the sport, arts and culture sector by developing, transforming, preserving, protecting and promoting sport, arts and culture at all levels of participation to foster an active, winning, creative and socially cohesive nation.

 

  1. Method

The Committee met to consider the 2020 – 25 Strategic Plans and 2020/21 APPs and budgets of the Department, the Robben Island Museum (RIM), Boxing South Africa (BSA), and the South African Institute for Drug-Free Sport (SAIDS). These were considered against the background of key Government policy documents, including, amongst others, the National Development Plan (NDP), the 2019 – 2024 Medium Term Strategic Framework (MTSF), and the 2021 State of the Nation Address (SONA). With national lockdown restrictions currently still in place, all meetings were held on virtual platforms.

 

  1. Strategic Overview of the Department of Sport, Arts and Culture

Cabinet adopted the National Development Plan: Vision 2030 (NDP) in 2012 as a long-term vision and plan for the country. This broad policy is regarded as the road map to deal with the challenges of unemployment, poverty and inequality by 2030.

 

The Vision 2030 is conceptualised as standing on three policy pillars:

  1. Achieving a more capable state;
  2. Driving a strong and inclusive economy; and
  3. Building and strengthening the capabilities of South Africans.

 

These are underpinned by seven Government priorities, as contained in the 2019-2024 Medium Term Strategic Framework (MTSF), namely:

  • Priority 1: Building a capable, ethical and developmental state
  • Priority 2: Economic Transformation and Job Creation
  • Priority 3: Education, Skills and Health
  • Priority 4: Consolidating the Social Wage through Reliable and Quality Basic Services
  • Priority 5: Spatial Integration, Human Settlements and Local Government
  • Priority 6: Social Cohesion and Safe Communities

 

Within that broad policy framework, the Department has to ensure that its outcomes and that of the entities reporting to the Minister are aligned to these seven broad policy priorities.This alignment ensures a direct focus of the work of the Department and its entities over the next five years as part of a capable, ethical and developmental state. This is a prerequisite for sector transformation, job creation and targeted strategies to facilitate nation-building and social cohesion.

 

To this end, Department responds to Chapter 15 of the NDP: Transforming society and uniting the country. This chapter draws together what is needed to transform the South African society to be prosperous, non-sexist, non-racial and democratic which are key values enshrined in the Constitution. In relation to the national priorities for the MTSF, with the exception of Priority 4 and 7, the Department contributes to the remaining Government priorities with a sharp focus on increasing the market share of and job opportunities created in the sector, and building a diverse, socially cohesive society.

 

In its effort to translate the broad policy statements into implementable programmes, the Department has stated the following as predetermined outcomes linked to the MTSF:

  • Outcome 1: Increased market share of and job opportunities created in sport, cultural and creative industries.
  • Outcome 2: A diverse, socially cohesive society with a common identity.
  • Outcome 3: Transformed, capable and professional sport, arts and culture sector.
  • Outcome 4: Integrated and accessible SAC infrastructure and information.
  • Outcome 5: Compliant and responsive Governance/Administration.

 

In support of these outcomes, the Department has developed focus areas categorised into the following ten points:

  1.  
  2.  
  3.  
  4.  
  5.  
  6.  
  7.  
  8.  
  9.  
  10.  

 

The Department has devised a range of high impact projects to respond to the outcomes and focus areas. These include, among others, the amalgamation of entities; the provision of Government support to anti-doping agencies; support high-performance athletes to achieve success at international events; and support to practitioners through the SAC academies, centres of excellence and incubators.

 

Over the MTSF, the Department’spolicy and legislative programme is be guided by two White Papers. The White Paper for Arts and Culture needs to be implemented so that it can contribute to the transformation of the sector. The White Paper for Sport and Recreation will co-exist with that of Arts and Culture. The APP notes that the Department is in the process of developing and/or reviewing the following policies and framework documents:

  • Athletes Support Policy;
  • South African Sports Academies Strategic Framework and Policy Guidelines;
  • The Prioritisation of Sport and Recreation Bodies Policy;
  • Women in Sport Policy;
  • Infrastructure Policy;
  • Implementation Framework of the South African Language Practitioners’ Council Act;
  • National Strategy for the development and promotion of a South African literary culture;
  • Visual Arts Strategy;
  • Arts and Culture Promotion and Development (ACPD) Funding Policy;
  • Craft Strategy;
  • Cultural and Creative Industries Masterplan;
  • International Relations;
  • Repatriation and restitution of human remains and heritage objects policy; and
  • National Policy Framework on the Digitisation of Heritage Resources.

 

The Department has embarked on a process to that sees the temporary deprioritisation of some programmes and projects that do not directly support relief measures. It has refocused the integrated medium-term planning for resilience and inclusive development and has focused efforts to improve the capacity and capability of the State to deliver efficiently and effectively.The intention of the MTSF is to integrate all key plans into a results-based framework. This will assist with coordination and ensure that important interventions and milestones are monitored to support delivery and accountability.

 

  1. Summary of budget expenditure (2021/22)

The Department organises its expenditure under four programmes, these are:

  • Programme 1: Administration (R440.1 million);
  • Programme 2: Recreation Development and Sport Promotion (R1.44 billion);
  • Programme 3: Arts and Culture Promotion and Development (R1.28 billion); and
  • Programme 4: Heritage Promotion and Preservation (R2.53 billion).

The table below reflects the budget allocation for 2021/22 and over the medium term.

 

Table 1: Overall Budget Allocation 2020/21 – 2023/24

Programme

Budget

Nominal Rand Change

Real Rand Change

Nominal % Change

Real % Change

R million

2020/21

2021/22

2022/23

2023/24

2020/21 – 2021/22

2020/21 – 2021/22

1: Administration

432.7

440.1

446.9

448.7

7.4

-10.3

1.7%

-2.4%

2: Recreation Development and Sport Promotion

1 171.7

1 441.8

1 463.5

1 487.8

270.1

212.0

23.0%

18.1%

3: Arts and Culture Promotion and Development

1 537.5

1 284.8

1 311.4

1 321.3

-252.7

-304.5

-16.4%

-19.8%

4: Heritage Promotion and Preservation

 2 168.8

2 527.2

2 606.5

2 628.6

358.4

256.5

16.5%

11.8%

TOTAL

5 310.7

5 693.9

5 828.3

5 886.5

383.2

153.7

7.2%

2.9%

Source: National Treasury ENE, 2021/22

 

The following points are for noting when considering the budget over the medium term:

  • Total expenditure is expected to increase at an average annual rate of 3.6 percent, from R5.31 billion in 2020/21 to R5.89 billion in 2023/24.
  • Spending on transfers and subsidies accounts for 80.2 percent (R13.9 billion) of the Department’s budget over the MTEF period.
  • Cabinet has approved reductions to the Department’s budget of R341.6 million in 2021/22, R441.3 million in 2022/23 and R494.4 million in 2023/24. These reductions mainly affect transfers and subsidies to public entities, Mzansi Golden Economy (MGE) work streams, heritage and legacy infrastructure projects, the Mass Sport Participation and Development Grant, the Community Library Services Grant (CLSG), Compensation of employees, and Goods and services. To mitigate the effects of these reductions on Transfers and subsidies, affected public entities will be required to implement costā€saving measures and raise their own revenue, where possible.

 

Due to these reductions, the Department anticipates delays in:

  • the completion of infrastructure projects in 2023/24, when the reductions are effected on allocations to heritage and legacy infrastructure projects and CLSG;
  • the procurement of fewer library materials over the medium term; and
  • fewer mass sport participation and development programmes over the same period.

 

For the 2021/22 financial year, the total budget allocation is R5.69 billion. This is projected to increase to R5.83 billion in 2022/23 and to R5.89 billion in 2023/24. When comparing the nominal amounts for the budget allocation across the medium term, allocations show a year-on-year increase. However, when the projected inflation rates (2021/22: 4.2 percent; 2022/23: 4.2 percent; and 2023/24: 4.4 percent) are taken into consideration, the cumulative growth rate between 2020/21 and 2023/24 is -0.7 percent.

 

Programme 4 receives the bulk of the total budget allocation for the Department, i.e. R2.53 billion or 44.4 percent. This is mainly due to the significant transfers to the Department’s heritage institutions and the CLSG that is transferred to all nine provinces. Programme 2 that receives next highest allocation, i.e. R1.44 billion or 25.3 percent. This programme transfers subsidies to the South African Institute for Drug-Free Sport (SAIDS), Boxing South Africa (BSA) and to various capital works projects underway at entities. Programme 3 receives R1.28 billion or 22.6 percentof the vote allocation and transfers grants to, inter alia,the performing arts institutions, the Pan South African Language Board (PanSALB), the National Film and Video Foundation (NFVF), the National Arts Council (NAC), and funds the MGE strategy. The smallest proportion of the budget is allocated to Programme 1, i.e. R440.1 million or 7.7 percent of the vote allocation.

 

The report will now turn to budgetary allocations per programme.

 

Programme 1: Administration

Purpose: Provide strategic leadership, management and support services to the Department.

 

This programme plays an important role in giving effect to the first priority of the NDP, that is, to build a capable, ethical and developmental state. This priority is also expressed in the Medium Term Strategic Framework (MTSF) for the five-year term 2019-2024, as a crucial mode that is required to achieve Vision 2030. The outputs delivered in Programme 1 contribute predominately to DSAC Outcome 3: Transformed, capable and professional sport, arts and culture sector and Outcome 5: Compliant and responsive governance.

 

With the process of merging of two departments, in its APP DSAC has highlighted the following in relation to administration:

  • The two merged departments were at different levels of efficiency at the time of the merger. While SRSA obtained consecutive clean audits, DAC obtained consecutive unqualified opinions with findings. Through shared expertise and resources, the Department is working towards ensuring a clean audit for the new department.
  • Although the Department is working towards a restructuring process following the merger between SRSA and DAC, it is important that vacancies of critical postsare filled, and demographic issues such as gender and disability are given attention. These must inform HR policies and recruitment of staff.

 

For the 2021/22 financial year, the budget allocation for this programme is R440.1 million. Compared to the previous financial year, this represents a nominal increase of R7.4 million, or 1.7 percent. When considering the inflation rate of 4.2 percent into account, the allocation has decreased by R10.3 million or 2.4 percent.

 

 

Table 2: Programme 1 Budget Allocation 2020/21 – 2021/22.

Administration

Budget

Nominal Rand change

Real Rand change

Nominal percent change 2021/22

Real percent change 2021/22

R million

2020/21

2021/22

2020/21 – 2021/22

2020/21 – 2021/22

1: Ministry

5.1

5.7

0.6

0.4

11.8%

7.3%

2: Management

65.7

82.6

16.9

13.6

25.7%

20.7%

3: Strategic Management and Planning

20.8

23.3

2.5

1.6

12.0%

7.5%

4: Corporate Services

158.5

147.8

-10.7

-16.7

-6.7%

-10.5%

5: Office of the Chief Financial Officer

60.6

60.3

-0.3

-2.7

-0.50%

-4.5%

6: Office Accommodation

122.0

120.3

-1.7

-6.5

-1.34%

-5.4%

TOTAL

432.7

440.1

7.4

-10.3

1.70%

-2.4%

Source: National Treasury ENE, 2021/22

 

Programme 2: Recreation Development and Sport Promotion

Purpose: Support the provision of mass participation opportunities, the development of elite athletes, and the regulation and maintenance of facilities.

 

The outputs delivered in Programme 2 contribute predominately to DSAC Outcome 2: A diverse, socially cohesive society with a common national identity; Outcome 3: Transformed, capable and professional sport, arts and culture sector; and Outcome 4: Integrated and accessible SAC infrastructure and information.

 

Table 3: Programme 2 Budget Allocation 2020/21 – 2021/22.

Recreation Development and Sport Promotion

Budget

Nominal Rand change

Real Rand change

Nominal percent change 2021/22

Real percent change 2021/22

R million

2020/21

2021/22

2020/21 – 2021/22

2020/21 – 2021/22

1: Wining Nation

  74.9

  86.7

  11.8

  8.3

15.7%

11.1%

2: Active Nation

  450.0

  714.6

  264.6

  235.8

58.8%

52.4%

3: Sport Support

  349.3

  171.2

-178.1

-185.0

-51.0%

-53.0%

4: Infrastructure Support

  297.5

  469.3

  171.8

  152.9

57.7%

51.4%

TOTAL

 1 171.1

 1 441.8

  270.7

  212.6

23.1%

18.1%

Source: National Treasury ENE, 2021/22

 

The Programme receives a budget allocation of R1.44 billion for 2021/22. Compared to the previous financial year in which this programme was allocated R1.17 billion, this represents a nominal increase of R270.7 million, or 23.1 percent. When considering the inflation rate of 4.2 percent into account, the allocation has actually only increased by R212.6 million or 18.1 percent. The budget allocation to Sub-programme 3 decreased significantly by 53.0 percent in real terms, while the allocation to Sub-programme 2 and 4 increases notably by 52.4 percent and 51.4 percent respectively in real terms.

 

This programme will ensure that:

  • athletes are supported through a range of interventions including the scientific support programme, the sports academies and the ministerial sports bursary programme;
  • people participate in organised sport and active recreation events;
  • the Department embarks on sport and recreation promotion campaigns and events;
  • schools, hubs and clubs provided with equipment and/or attire;
  • school sport is supported at district and national level;
  • National Federations meet 50 percent or more of all prescribed Charter transformation targets; and
  • the Department supports and facilitates the implementation of sport and heritage infrastructure projects.

 

The Department has revised one indicator under this programme. This is the “Number of heritage legacy facilities (including the Resistance and Liberation Heritage Route [RLHR] sites) developed and/or maintained to transform the national heritage landscape”. For the current financial year, efforts will be concentrated on three heritage legacy projects, namely Isibhubhu Cultural Arena (Enyokeni); the Sarah Bartmann Centre of Remembrance and the Dr John L Dube House.

 

Programme 3: Arts and Culture Promotion and Development

Purpose:Promote and develop arts, culture and languages, and implement the national social cohesion strategy.

 

The outputs delivered in Programme 3 contribute to all five departmental outcomes. These outputs will ensure:

  • the promotion and development of official languages, and the support to efforts to increase qualified language practitioners through language bursaries;
  • the development of the Cultural and Creative Industries (CCIs) through supporting practitioners and their enterprises in various cultural and creative sectors to gain access to both local and international markets;
  • capacity-building projects are financially supported to enhance the ability of practitioners and enterprises to participate effectively in various stages of the value chain of their sector;
  • provincial community arts development programmes have implemented that position and organise, community arts development to align with the overarching Government objectives of access and participation in the arts by South Africans; and
  • the coordination of international engagements on the continent and globally;
  • the promotion and support of programmes and partnerships that foster nation-building and social cohesion, including Gender-Based Violence (GBV) and anti-femicide programmes;
  • the increase in support to the creative industry, including placement of artists in schools to promote and support arts education through the MGE Strategy.

 

Table 4: Programme 3 Budget Allocation 2020/21 – 2021/22.

Arts and Culture Promotion and Development

Budget

Nominal Rand change

Real Rand change

Nominal percent change 2021/22

Real percent change 2021/22

R million

2020/21

2021/22

2020/21 – 2021/22

2020/21 – 2021/22

1: National Language Services

53.8

56.2

2.4

0.1

4.5%

0.2%

2: Pan South African Language Board

110.8

120.9

10.1

5.2

9.1%

4.7%

3: Cultural and Creative Industries Development

67.9

91.2

23.3

19.6

34.3%

28.9%

4: International Cooperation

31.4

42.9

11.5

9.8

36.6%

31.1%

5: Social Cohesion and Nation Building

58.4

93.2

34.8

31.0

59.6%

53.2%

6: Mzansi Golden Economy

149.4

323.0

173.6

160.6

116.2%

107.5%

7: Performing Arts Institutions

306.9

291.3

-15.6

-27.3

-5.1%

-8.9%

8: National Film and Video Foundation

325.3

145.9

-179.4

-185.3

-55.1%

-57.0%

9: National Arts Council

433.6

120.1

-313.5

-318.3

-72.3%

-73.4%

TOTAL

1 537.5

1 284.8

-252.7

-304.5

-16.4%

-19.8%

Source: National Treasury ENE, 2021/22

 

Programme 3 receives an allocation of R1.28 billion for 2021/22. This represents a nominal decrease of R252.7 million, or 16.4 percent, compared to the allocation of R1.54 billion it received in the previous financial year.Upon consideration of the inflation rate of 4.2 percent, the allocation has decreased significantly by R304.5 million or 19.8 percent in real terms. The once off funding allocated to Sub-programmes 8 and 9 in 2020/21 for the Presidential Employment Stimulus Programme (PESP), has resulted in an apparent decrease in allocations to these programmes by 57.0 percent and 73.4 percent respectively in real terms.

 

Of the total budget allocation of R1.28 billion for this Programme, the allocation for Transfers and subsidies amount to R1.03 billion or 80.0 percent. Through its sub-programmes, this programme funds among others, PanSALB, the NFVF, the NAC, and performing arts institutions such as the State Theatre, the Performing Arts Centre of the Free State (PACOFS), and the Artscape.

 

New indicators under this Programme are:

  • Number of monitoring reports on the implementation of a social compact for socialcohesion and nation building. Two reports are planned for 2021/22.
  • Number of films and documentaries supported telling stories of the history of liberation, cultural and heritage importance. For this financial year, the Department will support a total of ten films and documentaries.

 

Programme 4: Heritage Promotion and Preservation

Purpose: Preserve and promote South African heritage, including archival and heraldic heritage. Oversee and transfer funds to libraries.

 

The outputs delivered in Programme 4 contribute predominately to DSAC Outcome 2: A diverse, socially cohesive society with a common national identity; Outcome 3: Transformed, capable and professional sport, arts and culture sector; and Outcome 4: Integrated and accessible SAC infrastructure and information.

 

Through its sub-programmes, this Programme will:

  • support and implement a range of projects including awarding heritage bursaries; books documenting Living Human Treasures; development of heritage policies, as well as the promotion of national identity utilising the flag at national days, major cultural and sporting events in schools, the Monument Flag Project and “I am the Flag Campaign”;
  • upgrade national archives infrastructure to address infrastructure challenges in relation to space, technology and processes;
  • financially support newly built and/or modular libraries; and
  • transform and standardise geographical names.

 

Table 5: Programme 4 Budget Allocation 2020/21 – 2021/22.

Heritage Promotion and Preservation

Budget

Nominal Rand change

Real Rand change

Nominal percent change 2021/22

Real percent change 2021/22

R million

2020/21

2021/22

2020/21 – 2021/22

2020/21 – 2021/22

1: Heritage Promotion

50.5

59.4

  8.9

  6.5

17.6%

12.9%

2: National Archive Services

52.3

58.8

  6.5

  4.1

12.4%

7.9%

3: Heritage Institutions

547.7

605.7

  58.0

  33.6

10.6%

6.1%

4: National Library Services

195.5

143.1

-52.4

-58.2

-26.8%

-29.7%

5: Public Library Services

1 179.9

1 524.6

  344.7

  283.2

29.2%

24.0%

6: South African Heritage Resources Agency

73.3

58.2

-15.1

-17.4

-20.6%

-23.8%

7: South African Geographical Names Council

2.7

5.2

  2.5

  2.3

92.6%

84.8%

8: National Heritage Council

67.0

72.2

  5.2

  2.3

7.8%

3.4%

TOTAL

2 168.8

2572.2

403.4

299.7

18.6%

13.8%

Source: National Treasury ENE, 2021/22

 

Programme 4 receives an allocation of R2.53 billion for 2021/22. This represents a nominal increase of R403.4 million, or 18.6 percent, compared to the allocation of R2.17 billion it received in the previous financial year. Upon consideration of the inflation rate of 4.2 percent, the allocation has increased significantly by R299.7 million or 13.8 percent in real terms.

 

The budget allocation to Sub-programme 4 decreased significantly by 58.2 percent in real terms. This sub-programme funds libraries and institutions such as the National Library of South Africa, the South African Library for the Blind, and Blind South Africa; and develops related policy. The allocation to Sub-programme 6 has also seen a decrease of 17.4 percent. This sub-programme funds the South African Heritage Resources Agency (SAHRA) whose mandate is to formulate national principles, standards and policy for the identification, recording and management of the national estate in terms of which heritage resource authorities and other relevant bodies must function in relation to South African heritage resources.

 

Of this Programme’s allocation for 2021/22, R2.4 billion, or 95.6 percent, is classified as Transfers and subsidies. Through this programme, the Department funds a significant number of entities including, but not limited to, national museums, the National Heritage Council (NHC), the SAHRA, and public library services. The latter (Sub-programme 5 in the budget structure), transfers funds to Provincial Departments for conditional allocations to community library services for constructing and upgrading libraries, hiring personnel and purchasing library materials, i.e. the CLSG.The main aim of the CLSG is to transform urban and rural library infrastructure and services through targeting previously disadvantaged communities. This Grant primarily contributes to Government Priority 6: Social cohesion and safe communities. The allocation for 2021/22 is R1.5 billion, or 59.3 percent, of the total budget allocation for this programme.

 

The Department plans to build 87 new libraries, upgrade 120 community libraries and procure 290 000 library materials over the medium term at an estimated cost of R4.6 billion through the CLSG. For the current financial year, the following outputs are planned as per the division of revenue:

 

  • 290 000 items of library materials (books, periodicals, toys etc.) purchased;
  • Library information and communication technology infrastructure and systems software installed and maintained in all provinces;
  • New services established for the visually impaired at 25 identified community libraries in all provinces;
  • 22 new library structures completed;
  • 4 new library services established for dual-purpose libraries;
  • 13 upgraded library structures;
  • 22 maintained library structures;
  • 2 473 existing contract library staff maintained in all provinces;
  • Number new staff appointed for dual-purpose libraries;
  • 68 new staff appointed at public libraries to support the shifting of the function to provinces;
  • Capacity building programmes for public librarians;
  • Number of units of personal protective equipment procured (by type);
  • Litres of sanitisers procured; and
  • Community libraries deep cleaned due to COVID-19.

 

Under this Programme, there are two revised indicators and one new indicator. These are as follows:

  • Revised indicator: Number of books documenting living human treasures published. The number of books increases from two to five to be published by the end of the financial year.
  • Revised indicator: Number of heritage legacy projects where exhibition content is developed. Content will be developed for three sites, namely the Sarah Bartmann Centre of Remembrance; Winnie Mandela Brandfort House Memorial; and the OR Tambo Garden of Remembrance.
  • New indicator: Number of workshops hosted to advance knowledge of national symbols. Ten workshops are planned for this financial year.

 

  1. Engagements with entities and/or federations

The Committee engaged three entities and one national federation that receive transfers from the Department toenable them to contribute towardsimplementing the mandate of theDepartment as an extension of its service delivery network. An overview of these engagements is presented below.

 

  1. Robben Island Museum (RIM)

The RIM is a schedule 3A public entity established in terms of the Cultural Institutions Act (Act No. 11 of 1998).The Robben Island Museum (RIM) was established in 1997. It functions as the Management Authority responsible for responsible for managing, maintaining, developing and marketing Robben Island as a National Heritage and World Heritage Site, i.e. the Robben Island World Heritage Site (RIWHS), in terms of the National Heritage Resources Act (NHRA) (No. 25 of 1999) and the National World Heritage Act of 1999.

 

The entity’s vision is to preserve and promote Robben Island as an inspirational national treasure and World HeritageSite that symbolises thetriumph of the human spiritover extreme adversity and injustice.

 

RIM carries out its mandate through the following key programmes:

  • Programme 1: Business Development - aims of this programme include to protect and conserve cultural and natural values of the Island; maintain the site’s outstanding universal value; undertake research; promote; promote, brand and market the Island; maintain the ferry service; improve visitor experience; and protect and maintain the built environment.
  • Programme 2: Public Engagement - provides a visitor experience through an integrated and holistic narrative of the island;access to academic scholarship, research and training through postgraduate programme; andinclusive access to information through outreach programmes.
  • Programme 3: Administration - endeavours to strengthen governance to ensure effective management.

 

RIM briefed the Committee on its 2021/22 APP and other related matters on 05 May 2021.

 

  1. RIM Budget Overview 2021/22

The entity’s projected total income for the 2021/22 financial year amounts to R107.3 million. The Department will transfer a grant amounting to R87.1 million or 81.1 percent of this total income. The Government grant thus represents the bulk of the income for this entity.The overall DSAC transfer is projected to increase from R87.1 million in 2021/22 to R88.8 million in 2022/23 and to R89.1 million in 2023/24. However, when considering inflation, the transfer is estimated to decrease slightly from R83.6 in 2021/22 to R81.6 million in 2022/23 and to R78.6 million for 2023/24, i.e. a real decrease is observed over the MTEF.

 

For the 2021/22 financial year, RIM generates the remaining income of R20.2 million mainly through tours, and also museum shop sales, rental income, among other sources.Programme 1: Business Development receives the bulk of the total budget, R118.8 million or 66.5 percent. Programme 3: Administration receives R49.2 million or 27.5 percent. Programme 2: Public Engagement receives the smallest allocation, i.e. R10.7 million or 6.0 percent.

 

Personnel costs for the 2021/22 financial year amounts to R120.8 million. This is R33.7 million greater than the grant of R87.1 million received from the Department.

 

COVID-19 has negatively impacted revenue generation.RIM was not able to operate for six months of the 2020/2021 financial year. Furthermore, due to various lockdowns across the world, foreign visitors, whom constitute almost 80 percent of RIM’s visitor numbers, was not able to travel. Thus an estimate of only 18,800 tickets were sold against an initial planned number of 322,000 which constitutes less than 6 percent of required sales.This has severely impacted on RIM’s financial stability and sustainability as all reserves were utilised to service contractual (including an unfunded mandate relating to diesel in order to produce electricity and water on the Island) and employment commitments.

 

  1. Boxing South Africa (BSA)

BSA is a public entity that reports to the Department. The South Africa Boxing Act (Act No.11 of 2001) mandates BSA to accomplish the followingfunctions:

  • Provide a new structure for professional boxing in the Republic.
  • Ensure effective and efficient administration of professional boxing in the Republic.
  • Recognise amateur boxing and create synergy between professional and amateur boxing.
  • Promote interaction between associations of boxers, managers, promoters, trainers, officials and Boxing SA.

 

The entity’s vision is to be a leading sport code in South Africa and a world-classboxing authority.

 

BSA carries out its mandate through the following programmes:

  • Programme 1: Governance and Administration - ensures compliant corporate governance and reporting, prudent financial management and procurement of goods and services and ensures that governance structures perform its strategic oversight and leadership functions, monitoring performance and manage and mitigate entity risks and drive complianceassurance.
  • Programme 2: Boxing Development – ensures that that there are capacity development programmes developed and implemented in the sector for the benefit and development of licensees across all categories ensuring that they meet and fulfil compliance requirements The programme also seeks to ensure that there is compliance in all spheres of boxing administration particularly in sanctioning of tournament, rating of boxers in various weight divisions, andalways promoting health and safety
  • Programme 3: Boxing Promotion – raises the public profile of BSA and boxing and to increase its brand value to such an extent that the public and sponsors will compete for a space boxing programmes and enlist theirsupport and resources for its development further.

 

  1. BSA Budget Overview 2021/22

The Committee met with the entity on 05 May 2021 to scrutinise its APP and budget for the 2021/22 financial year.

 

Boxing South Africa’s main long-term revenue base is its annual allocation from the Department totaling R19.1 million for the current financial year. In addition to the money appropriated from the fiscus, a total projected income of R3.5 million comes from internally generated revenue sources that include licensing, sanctioning levies, penalties and interests from the investment revenue. Collectively this brings the total budget for 2021/22 to R22.7 million.Programme 1: Governance and Administration receives the bulk of the total budget, R16.7 million or 73.6 percent. Programme 2: Boxing Development receives R3.4 million or 15.0 percent. Programme 3: Boxing Promotion receives the smallest allocation, i.e. R2.5 million or 11.0 percent. The total expenditure is expected to increase to R23.4 million in 2022/23 and to R23.8 million in 2023/24.

 

The total budget for this financial year will be spent as follows: R8.9 million or 39.2 percent on Compensation of employees; R12.9 million or 56.8 percent on Goods and services; and R870 000 or 3.8 percent on Capital expenses.

 

The following are some of the challenges flagged by BSA:

  • Insufficient funding vis à vis total mandate as per Boxing Act.
  • Insufficient personnel capacity to deliver on strategic objectives.
  • Resistance to change by licensees.
  • Unaligned financial assistance by most municipalities and provincialdepartments when sponsoring boxing tournaments.
  • Diminished boxing broadcasting.
  • Few programmatic relations between BSA and the South African National Boxing Organisation (SANABO).

           

  1. South African Institute for Drug-Free Sport (SAIDS)

The South African Institute for Drug-Free Sport (SAIDS) is a public entity established by the SAIDS Act (Act No. 14 of 1997) to “promote participation in sport free from the use of prohibited substances or methods intended to artificially enhance performance, thereby rendering impermissible doping practices which are contrary to the principles of fair play and medical ethics, in the interest of the health and well-being of sportspersons; and to provide for matters connected therewith”.SAIDS is a non-profit organisation. As such, no dividends are declared to any members or outside parties and all funds received are utilised for the furtherance of the Institute’s objectives as outlined in Section 10 of the Act. The entity receives the majority of its funding from the Department.

 

SAIDS carries out its mandate through the following programmes as per the ENE:

  • Programme 1: Administration
  • Programme 2: Doping Control
  • Programme 3: Education
  • Programme 4: International Relations

 

  1. SAIDS Budget Overview

On 06 May 2021, the Committee engaged SAIDS on its APP for 2021/22.

 

For this financial year, SAIDS will receive a total budget of R28.6 million. Expenditure and revenue is expected toincrease at an average annual rate of 4.3 percent, from R26.8 million in 2020/21 to R30.3 million in 2023/24.The institute is set to derive 98.2 percent (R87.1 million) of its revenue over the MTEF period through transfers from the Department. Spending on goods and services accounts for an estimated R62.2 million or 70.2 percent of the institute’s expenditure over the medium term as it to meet national sports federations’ demand for testing services to comply with their respective international obligations.

 

The budget of R28.6 million for this financial year will be spent as follows: Programme 1: Administration receives the bulk of the total budget, R13.5 million or 47.2 percent; Programme 2: Doping control receives R13.2 million or 46.1 percent; Programme 3: Education receives R1.7 million or 5.9 percent; and Programme 4: International relations receives the smallest allocation of R290 000 or 1.0 percent.

 

Over the MTEF, the SAIDS intends to focus on implementing processes to ensure stricter compliance with the 2021 World Anti-Doping Code. One of the international standards, the International Standard for Testing and Investigations (ISTTI) in the Code requires a minimum level analysis on banned substances in specific sports.This will see a projected minimum of 1100 increasing to 1600 drug tests conducted on South African athletes each year over the medium term. The full accreditation to the Bloemfontein Laboratory was restored in September 2018 and SAIDS resumed sending all its drug testing samples to the South African Laboratory and savings in courier costs will be realised through additional tests.

 

The effect of the national lockdown on the Laboratory and subsequent shutdown of sport has not yet been fully determined with respect to the resumption of full operations. The revenue generated from testing analyses funds the Laboratory. Should the Laboratory close, in the medium term, due to financial constraints, SAIDS’ expenditure will be significantly affected due to samples having to be sent overseas for analysis. The testing expenditure will be subjected to the volatility of the South African Rand with respect to other international currencies.

 

  1. Committee observations

Having considered and examined the Departmental and above-mentioned entities’ 2020/21 – 2024/25 Strategic Plans and 2020/21 Annual Performance Plans with associated budgets, the Committee made the following observations:

 

Observations in relation to the Department of Sport, Arts and Culture

  1. Consequence management:The Committee noted the matter of consequence management to deal with transgressions within the Department and its entities and sought further insight into how the Department implements consequent management.
  2. Collaboration:In a previous engagement with the Department, the Committee agreed to adopt schools yet to receive national flags as part of the Department’s Flags in Schools project. The Committee enquired about the status of this resolution.
  3. The Cultural & Creative Industries Federation of South Africa (CCIFSA):The Committee noted that artists are displeased with the Federation to the extent that some artists do not wish to be affiliated to it. The Committee sought further clarity on this matter and wished to know what budgetary support the Department provides to CCIFSA.
  4. Merging of the two departments: The Committee noted that while the process of merging the DAC with SRSA is currently still underway, it sought further clarity on the finalisation of the process.
  5. Organisational stability and human resources:Given that the Department is newly merged, the Committee enquired about the Department’s plan to fill vacancies.
  6. Governance of entities: Some council members who have a record of poor performance have been moved to other entities. The Committee asked how the Department is going to rectify this issue.
  7. LoveLife: The Committee asked why LoveLife is still funded by the Department given that in an engagement with the Committee, it surfaced that the targets set are not measureable.
  8. Costs related to governance of entities: The Committee noted that the Department spends a significant amount on board politics and asked about plans to reduce such costs.
  9. Outstanding legislation: The Committee requested information on the status of this and sought further clarity on legislation the Department will prioritise and fast track.
  10. Support for sector practitioners in light of the COVID-19 pandemic: The Committee asked that in light of the its recent oversight visit to follow up on the concerns of disgruntled artists if the Department could provide further insight into how it goes about to provide training to artists.
  11. Library function: The Committee noted that a large percentage of the budget for Programme 4 is transferred for the provision of library services and noted that this function is hidden within the Programme that, to some extent, hampers oversight.
  12. Support for Caster Semenya: The Committee is of the view that more should be done to support Ms. Semenya.
  13. Soccer Indaba: The Committee noted that a Soccer Indaba is urgently needed.
  14. Cricket South Africa (CSA) and the Sports Confederation and Olympic Committee (SASCOC): The Committee noted with concern the challenges that hamper these organisations.

 

Observations in relation to the Robben Island Museum

  1. Reduced ability to generate revenue: The Committee notes with concern that the RIM has been severely affected by the COVID-19 pandemic to the point where it has failed to generate a significant portion of its budgeted revenue during the last financial year.
  2. Business rationalisation: The Committee notes with concern that due the budgetary constraints, the RIM has embarked on a process of business rationalisation and has invoked Section 189 of the Labour Relations Act as final resort after requesting staff to take salary cuts.
  3. Internal/external audit function: Due to financial constraints, the Committee expressed its unease with the fact that some audits could not go ahead as planned.
  4. Investigation in alleged corruption and mismanagement: The Committee is appreciative of the fact that consequent management is currently being implemented at the RIM stemming from this investigation.

 

Observations in relation to the Boxing South Africa

  1. Sanctioning fees: The Committee expressed concern over the poor collection on sanctioning fees by BSA.
  2. Development of boxing nationally: The Committee showed concern that the boxing development and tournaments were concentrated in one province, i.e. the Eastern Cape and inquired if there is a roll-out for boxing to take place in the rest of the provinces, with particular emphasis on rural areas.
  3. Collaboration and partnerships:The Committee was concerned about the relationship between BSA and SANABO and need to do follow-up as to whether the two organisations have a good working relationship.
  4. Planning: The Committee noted that BSA should try to stay the course with the strategic plan set out at the Boxing Indaba in 2013 and continue an upwards trajectory, by implementing the resolutions of their indaba.
  5. Women’s boxing: The Committee expressed concern regarding the development and lack of funding over women’s boxing and would like to see more support for female boxing.
  6. Popularity of the sporting code: The Committee noted with concern that boxing in SA was not popular among the public and called for BSA to speed up the process of acquiring a licence with the National Broadcaster (SABC) in order for it to broadcast live professional boxing matches.

 

Observations in relation to the South African Institute for Drug-Free Sports

  1. Doping in school sports: The Committee wishes to see an increased rollout of Sports Doping Education at the school level given that there has been an increased steroid use among high school students and athletes.
  2. Drug testing at schools: The Committee noted that there needs to be some form of legislation allowing for increased drug testing at the school level without the interference of parents and coaches.
  3. Irregular expenditure: The Committee is concerned over the increased level of irregular expenditure at SAIDS.

 

  1. Recommendations

It is requested that the Minister of Sport, Arts and Culture considers the following recommendations and reports back to the Committee within six months of the adoption of the budget.

 

Recommendations in relation to the Department of Sport, Arts and Culture

It is recommended that the Minister:

 

  1. Consequence management: The Committee notes with appreciation the progress the Department has already made with implementing consequence management within the Department and its entities and requests that this work continues.
  2. Collaboration: The Department should provide Members with a list of schools still requiring flags and provide said flags for Members to deliver to schools within their constituency areas. The DBE will then take responsibility of the hoisting and maintenance of the flags.
  3. CCIFSA: As the Department noted that CCIFSA is a work in progress, the Department should provide the Committee with CCIFSA’s current status and keep the Committee informed on further developments.
  4. Merging of the two departments: The Department should keep the Committee abreast of developments on this front.
  5. Organisational stability and human resources: The Department to provide the Committee with regular updates on the filling of vacancies to ensure that service delivery happens effectively.
  6. Governance of entities: The Department should look into into the matter of consequence management for board members who are not bringing value..
  7. LoveLife: The Committee has resolved to meet with LoveLife again to strengthen oversight.
  8. Costs related to governance of entities: The Department to provide the Committee with a report on the costs of litigation stemming from board politics.
  9. Outstanding legislation: The Department to provide a list of all outstanding legislation that it has prioritised.
  10. Support for sector practitioners in light of the COVID-19 pandemic: The Department should look into providing more capacity building opportunities for artists.
  11. Library function: The Department to consider moving this function to become a standalone programme.
  12. Support for Caster Semenya: The case of Caster Semenya should be fully supported by the Department at the European Court for Human Rights.
  13. CSA and SASCOC: The Minister should continue to monitor the work of Cricket South Africa (CSA) and the South African Sports Confederation and Olympic Committee SASCOC given the challenges the organisations have been facing.
  14. Soccer Indaba: The Department must ensure that this Indaba is hosted as a matter of urgency.

 

Recommendations in relation to the Robben Island Museum

  1. Reduced ability to generate revenue: The RIM should look creatively at generating revenue through alternate meansthrough specifically focusing on marketing to promote the Island.
  2. Business rationalisation: While in the last financial year, additional resources have been allocated to retain staff, the Department and the entity should work together on a viable solution to stave off possible retrenchments.
  3. Internal/external audit function: The Department should assist the entity to ensure that all audit functions are carried out to reduce the risk of an unfavourable audit outcome.
  4. Investigation in alleged corruption and mismanagement: The Department should keep the Committee updated on the progress made in respect of the consequent management that has been initiated and currently underway.

 

Recommendations in relation to the Boxing South Africa

  1. Sanctioning fees: The accounting authority must implement consequence management and there must be an action plan to deal with investigations for cases of irregular, fruitless and wasteful expenditures to ensure that matters of discipline, financial misconduct and recovery are dealt with.
  2. Development of boxing nationally: The Committee would like to see the rollout of boxing development and tournaments throughout the country, especially in rural areas, as boxing is currently concentrated in one province.
  3. Collaboration and partnerships: BSA should strengthen and maintain good working relationships with SANABO.
  4. Planning: BSA should stay on course with the strategic plan set out at the Boxing Indaba in 2013 by implementing the resolutions of their Indaba.BSA should familiarise itself with the Framework for Managing Strategic Plans and Annual Performance Plan (FSAPP) and Framework for Managing Programme Performance Information (FMPPI).BSA should make sure that their performance indicators and targets are clearly defined, measurable, and specific to the overall strategy of the organisation.
  5. Women’s boxing: BSA should put more effort into the development of women’s boxing, especially in cases where tournaments receive State funding.
  6. Popularity of the sporting code:The Committee calls for BSA to speed up the process of acquiring a licence with the SABC in order for live professional boxing matches to be broadcasted on the National Broadcaster.

 

Recommendations in relation to the South African Institute for Drug-Free Sports

  1. Doping in school sports: With the assistance from the Department through school sport and community sport programmes, SAIDS must consider reaching out to townships and rural areas to implement the anti-doping education projects specific to youth sports and this point was raised in the previous financial years.
  2. Drug testing at schools: Through engagements with the Department, SAIDS needs to look at drafting legislation that will address drug testing at school sport level to avoid resistance from coaches and parents.
  3. Irregular expenditure: SAIDS needs to update its Supply Chain Management (SCM) and Procurement Policy to include the requirements for local production and content, and continue with the strict compliance practices currently in place.

 

 

  1. Conclusion

The Committee welcomes the 2020 – 25Five-year Strategic Plans and the 2020/21 Annual Performance Plans of the Department of Sport, Arts and Culture and the entities and federation with which it engaged.

The Committee acknowledges the importance of the mandate of the Department of Sport, Arts and Culture in building and uniting South Africa. It further acknowledges that through various programmes, the Department plays a vital role in facilitating job creation in the sector as well as developing and capacitating sport, arts, culture and heritage practitioners. Struggling sport federations should continue to be provided with financial assistance through sports trust, especially those affected by the postponements and cancellation of events during lockdown. This is crucial in light of the current economic climate as many sector practitioners have been adversely affected through loss of income and/or job opportunities.

 

The Committee further notes that the Department should prioritise the issue of transformation in sport, given the slow pace in some sporting codes. The development of school sport and community sport clubs programmes can be facilitated by fast tracking and implementing the Memorandum of Understanding (MoU) between both the Department and the Department of Basic Education.

 

The Committee recommends that the House adopt the Budget Vote Report of Vote 37: Department of Sport, Art and Culture.

 

 

Report to be considered.

 

Documents

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