ATC230920: Report of the Portfolio Committee on Sport, Arts and Culture on its consideration of the 2022/23 Fourth Quarter Financial and Non-Financial Performance of the Department of Sport, Arts and Culture, dated 19 September 2023

Sport, Arts and Culture

Report of the Portfolio Committee on Sport, Arts and Culture on its consideration of the 2022/23 Fourth Quarter Financial and Non-Financial Performance of the Department of Sport, Arts and Culture, dated 19 September 2023

 

The Portfolio on Sport, Arts and Culture, having considered the 2022/23 Fourth Quarter Financial and Non-Financial Performance of the Department of Sport, Arts and Culture, reports as follows:

 

1. Introduction

 

Section 40(1)(f) of the Public Finance Management Act (PFMA) (No. 1 of 1999) instructs the accounting officer of a department to submit all reports, returns, notices and other information to Parliament. The PFMA also stresses the need for accounting officers to regularly monitor and report on the performance of their departments against the agreed budget for the year.

 

Section 5(1)(c) of the Money Bills Amendment Procedure and Related Matters Act (Money Bills Act) (No. 9 of 2009) determines that the National Assembly (NA), through its committees, must annually assess the performance of each national department in relation to the expenditure report published by National Treasury in terms of section 32 of the PFMA.

 

One of the outcomes of the sixth Parliament is to ensure an accountable government. Hence, the Committee conducts in-year monitoring and assessment of the expenditure and achievement of performance targets as set out in the Department’s 2022/23 Budget and Annual Performance Plan (APP). The quarterly assessments of the Department’s expenditure and non-financial performance also assists the Committee in its preparation for the annual submission of the Budgetary Review and Recommendation Report (BRRR) as prescribed by Section 5(2) of the Money Bills Act.

 

1. Vote 37: Sport, Arts and Culture – 2022/23 Budget Allocation

The Department of Sport, Arts and Culture (the Department or DSAC) contributes to the national imperative of accelerating economic recovery post the COVID-19 pandemic through supporting sport and recreation bodies; realising and reemphasising the economic potential of the creative sector; creating regular work opportunities; and international cooperation.

 

Given the devastating impact of the pandemic on the sector, the Department implemented several relief interventions, in addition to the existing programmes, including three phases of relief funding including the Presidential Employment Stimulus Programme (PESP). As of the second quarter of the 2021/22 financial year, the Department put in place an Economic Recovery and Reconstruction Plan (ERRP) that is aligned to Government’s overarching plan. This plan was implemented in the 2021/22 financial year and continues into the medium-term expenditure framework (MTEF). As such, the Mzansi Golden Economy (MGE) has been earmarked as a contributor to public employment and skills diversification as the contribution of the arts extends to other sectors, such as tourism, which are reliant on cultural and heritage products.[1]

 

The Department’s planning is guided by the following strategic outcomes:

 

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 national identity.

Outcome 3:     Transformed, capable and professional sport, arts and culture sector

Outcome 4:     Integrated and accessible sport, arts and culture infrastructure and information.

Outcome 5:     Compliant and responsive governance.

 

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

1. Create job opportunities and support entrepreneurs.
2. Increase market share of sport, cultural and creative industries.
3. Capacitate and professionalise the sport, arts and culture sector.
4. Increase access to infrastructure and information.
5. Establish a common national identity.
6. Engender compliant and responsive governance.
7. Strengthen sport and cultural diplomacy.
8. Accelerate social cohesion.
9. Promote official languages.
10. Implement the emergency response plan on gender-based violence and femicide.

 

The Department’s 2022/23 budget allocation increased nominally by R547.8 million from R5.7 billion in the 2021/22 financial year to R6.3 billion. When adjusted for inflation, this represents a real increase of R276.7 million (4.8 per cent). The Department’s overall budget allocation remained unchanged at the conclusion of the adjustments budget process. In terms of economic classification, the budget allocation comprised Current Payments of R1.0 billion (16.6 per cent of the total allocation and R912.5 million in 2021/22); Transfers and Subsidies of R5.1 billion (80.1 per cent of total allocation and R4.7 billion in 2021/22); and Payments for Capital Assets of R158.7 million (2.5 per cent of total allocation and R178.8 million in 2021/22).

 

The Department’s budget funds four programmes. An overview of the budget programmes, their purpose as well as main and adjusted appropriation per programme is provided in Table 1 below.

 

Table 1: 2022/23 Vote 37 programmes, purpose, and main appropriation

Programme R thousand	Purpose	Main Appropriation
1: Administration	Provide strategic leadership, management and support services to the Department.	453 228
2: Recreation Development and Sport Promotion	Support the provision of mass participation opportunities, the development of elite athletes, and the regulation and maintenance of facilities.	1 462 786
3: Arts and Culture Promotion and Development	Promote and develop arts, culture and languages, and implement the national social cohesion strategy	1 749 793
4: Heritage Promotion and Preservation	Preserve and promote South African heritage, including archival and heraldic heritage; oversee and transfer funds to libraries.	2 629 321
Total		6 295 128

Source: National Treasury (2022).

 

The percentage budget allocation to the programmes remained essentially unchanged from previous financial years. Public entities reporting to the Department, libraries, sporting federations, various non-profit institutions (NPIs), etc. are funded through Programmes 2, 3 and 4. As indicated earlier, this constitutes 80.7 per cent of the total budget allocation and is in line with the expected expenditure over the MTEF.

 

1. Summary of Performance: 2022/23 First – Third Quarter
   1. First Quarter[2]

By the end of the first quarter, the Department’s spending amounted to R1.0 billion (16.2 per cent) of its available budget of R6.3 billion. In the first quarter, the Department reported lower than projected spending of R414.2 million (28.9 per cent) per cent against projections of R1.4 billion. The lower than projected spending was mainly on Transfers and Subsidies in Programme 2: Recreation Development and Sport Promotion and Programme 3: Arts and Culture Promotion and Development. Spending on personnel was R85.1 million (22.6 per cent) of the available budget of R376.4 million, with a resultant variance of R8.8 million (9.4 per cent) against first quarter projections of R93.9 million.

 

The Department spent R85.1 million (22.6 per cent) on Compensation of Employees, against the available budget of R376.4 million with expenditure being R8.8 million (9.4 per cent) lower than the second quarter projected expenditure of R93.9 million due to the Department experiencing challenges in making headway in reducing its vacancy rate after the amalgamation of the Department of Arts and Culture with the Department of Sport and Recreation. Expenditure on Goods and Services amounted to R136.1 million (21.5 per cent) of the available budget of R632.3 million. The projected expenditure for the first quarter was R152.6 million, thus the Department underspent by R16.4 million (10.8 per cent). It should be noted that by the end of the 2021/22 financial year, the Department had 670 posts on the approved establishment with 538 posts filled and a vacancy rate of 19.7 per cent.

 

Spending on Transfers and Subsidies at the end of the first quarter was R797.9 million (15.7 per cent) of the available budget, while the projected expenditure for the second quarter was R1.2 billion. Expenditure was therefore R371.9 million (31.8 per cent) lower than projected. The Department spent R100 000 (0 per cent) on Payments for Capital Assets of the available budget of R206.2 million. The projected expenditure for the first quarter was R17.2 million, thus recording a significant underspending of R17.1 million (99.7 per cent) against the quarterly projections.

 

In terms of non-financial performance, the Department achieved 20 out of 20 (100 per cent) of its planned targets for the quarter.[3]

 

1. Second Quarter[4]

Against the available budget of R6.3 billion, the overall actual expenditure amounted to R2.8 billion (44.2 per cent). The Department had projected to spend R3.2 billion by the end of the second quarter. Thus, spending was lower than projected by R433.5 million (13.5 per cent). The Department recorded lower than projected expenditure mainly due to slow spending on Payments for Capital Assets in Programme 2: Recreation Development and Sport Promotion; and Transfers and Subsidies in Programme 3: Arts and Culture Promotion and Development.

 

Lower spending on Transfers and Subsidies in Programme 3 was due to delays by entities in approving the applications and awarding funding for Phase 3 of the Presidential Youth Employment Initiative. The Department could only transfer these funds once the selected entities finalised their adjudication process. In Programme 2, delays in spending capital budgets due to challenges with the Department of Public Works and Infrastructure (DPWI) and non‐compliance by contractors with the Department’s Infrastructure Management Policy.

 

At the end of the second quarter, the Department spent R170.0 million (45.2 per cent) on Compensation of Employees, against the available budget of R376.4 million with expenditure being R18.2 million (9.7 per cent) lower than the second quarter projected expenditure of R188.3 million. Expenditure on Goods and Services amounted to R314.9 million (49.8 per cent) of the available budget of R632.3 million. The projected expenditure for the second quarter was R325.7 million, thus the Department underspent by R10.8 million (3.3 per cent).

 

Spending on Transfers and Subsidies at the end of the second quarter was R2.3 billion (45.1 per cent) of the available budget, while the projected expenditure for the second quarter was R2.7 billion. Expenditure was therefore R375.1 million (14.1 per cent) lower than projected. The Department spent R6.1 million (2.9 per cent) on Payments for Capital Assets of the available budget. The projected expenditure for the second quarter was R35.4 million, thus recording a significant underspending of R29.4 million (82.9 per cent) against the quarterly projections.

 

The Department had planned to achieve 28 targets in the second quarter and achieved 25 (89 per cent) while three (11 per cent) were not achieved.[5]

 

1. Third Quarter[6]

The Department’s total adjusted budget for the 2022/23 financial year was unchanged at R6.3 billion. Actual expenditure at the end of the third quarter amounted to R4.6 billion (73.3 per cent) of the available budget. The projected expenditure for the third quarter was R4.9 billion, therefore the actual expenditure was R325.8 million (5.2 per cent) lower than projected.

 

At the end of the third quarter, the Department spent R257.6 million (68.6 per cent) on the Compensation of Employees, against the available budget of R375.4 million. Expenditure was R24.5 million (6.5 per cent) lower than the third quarter projected expenditure of R282.1 million due to vacant posts. The Department had a headcount of 573 against the Human Resources Budget Plan (HRBP) target of 571. The number of filled posts was two more than the HRBP target.

 

Expenditure on Goods and Services amounted to R480.8 million (73.3 per cent) of the available budget of R655.6 million. The projected expenditure for the third quarter was R491.1 million, thus the Department underspent by R10.3 million (1.6 per cent). Spending on Transfers and Subsidies at the end of the third quarter was R3.9 billion (75.6 per cent) of the available budget, while the projected expenditure was R4.1 billion. Expenditure was therefore R222.0 million (5.4 per cent) lower than projected. The Department spent R11.6 million on Payments for Capital Assets (7.3 per cent) of the available budget of R158.7 million. The projected expenditure for the third quarter was R80.7 million. As was the case in the second quarter, the Department thus recording significant underspending of R69.1 million (85.6 per cent) against the quarterly projections.

 

With the tabling of the Medium-Term Budget Policy Statement (MTBPS) in October 2022, the Department’s budget allocation remained unchanged at R6.3 billion. Several virements and shifts within the vote were effected, totalling R37 million and R137.7 million, respectively.

 

In relation to non-financial performance, the Department had 29 performance targets for the quarter and achieved 23 (79 per cent) while six (21 per cent) targets were not achieved.

 

1. 2022/23 Fourth Quarter financial[7] and non-financial[8] performance
   1. General overview

At the end of the fourth quarter, the Department had spent R6.2 billion (98.9 per cent) of the available budget of R6.3 billion, with under expenditure amounting to R68.8 million. The underspending is mainly under, Compensation of Employees, Goods and Services and Transfers and Subsidies, mainly in Programmes 1, 3 and 4.

 

Spending on Compensation of Employees was at R353.4 million (91.6 per cent) against the final appropriation of R385.8 million. Department had projected to spend 100 per cent of this budget by end of the quarter and thus incurred under expenditure of R32.4 million (8.4 per cent) against the projections. This is attributed to the slow rate at which vacancies within the Department are being filled. As per reporting in the previous quarters, the Department is working at filling the vacancies but internal promotions and ongoing recruitment, has hampered progress. One of the key positions that remains vacant at the end of the fourth quarter is that of the Director-General. Expenditure on Goods and Services amounted to R691.9 million (99.0 per cent) against the final appropriation of R699.2 million. The Department projected to fully expend the quarterly budget and thus incurred under expenditure of R7.3 million (1.0 per cent).

 

Within the Transfers and Subsidies economic classification for which the final appropriation is R5.1 billion, the Department incurred under expenditure of R29.0 million, with R18.7 million of this due to underspending on Departmental Accounts and Agencies.

 

An amount of R16 000 was recorded by the Department for COVID‐19 related activities against Consultants: Business and Advisory Services for the work done by the COVID-19 advisory committee for the relief funding to artist and athletes.

 

Out of the 43 performance targets set for the fourth quarter, the Department achieved 35 (81 per cent) and did not achieve eight (19 per cent) of these targets. In its presentation to the Committee, the Department elaborated on the reasons for deviation from the planned targets as well as corrective measures taken. These are detailed in the section of this report that provides an overview per programme.

 

Table 2: Vote 37: Sport, Arts and Culture – 2022/23 Budget and Expenditure summary

R million	Main Appropriation	Adjusted Budget	Available Budget	Year End Actual Expenditure	Expenditure as % of Available budget	Underspending / overspending	% Under / overspending	COVID-19 Spending
Programme
1. Administration	453.2	457.9	545.2	533.8	97.9%	11.4	2.1%	0.0
2. Recreation Development and Sport Promotion	1 462.8	1 427.0	1 343.4	1 337.3	99.5%	6.1	0.5%	0.0
3. Arts and Culture Promotion and Development	1 749.8	1 752.1	1 765.7	1 7431	99.2%	13.5	0.8%	0.0
4. Heritage Promotion and Preservation	2 629.3	2 668.6	2 660.2	2 622.4	98.6%	37.8	1.4%	0.0
Total	6 295.1	6 305.5	6 305.5	6 236.6	98.9%	68.9	1.1%	0.0
Economic Classification
Current payments	1 008.7	1 054.3	1 087.3	1 045.3	96.1%	42.0	3.9%	0.0
Compensation of employees	376.4	385.8	385.3	353.4	91.6%	32.4	8.4%	0.0
Goods and services	632.3	668.5	701.5	691.9	98.6%	9.6	1.4%	0.0
Interest and Rent on Land	0.0	0.0	0.0	0.0	0.0%	0.0		0.0
Transfers and subsidies	5 080.2	5 092.5	5 134.9	5 105.8	99.4%	29.0	0.6%	0.0
Payments for capital assets	206.2	158.7	83.3	84.2	101.1%	-0.9	-1.1%	0.0
Payments for financial assets	0.0	0.0	0.0	1.3	0.0%	-1.3		0.0
Total	6 295.1	6 305.5	6 305.5	6 236.6	98.9%	68.9	1.1%	0.0

Source: National Treasury (2023).

 

1. Overview per programme

Programme 1: Administration

The actual expenditure amounted to R533.8 million (97.9 per cent) of the available budget of R545.2 million. Programme 1 underspent by R11.4 million (2.1 per cent), mainly under Compensation of employees due to delays in filling posts, on Payments for capital assets due to the delayed submission of invoices by the service provider for laptops procured by the department and on Goods and services due to lower than anticipated cost than budgeted for both auditing fees and property payments (municipal service charges).

 

Regarding non-financial performance, this programme achieved five (83 per cent) of the six targets for the quarter. The following target was not achieved:

 

Target	Actual achievement as at 31 March 2023	Reason for deviation	Corrective action
Two prioritised manual services mordenised	Project 1: The database for the Sport, Arts and Culture was completed and the portal implemented within the DSAC servers and is accessible to the public.	Nil responses to the advertised tender for Project 2:  Public Entities Reporting System	The project will be moved to the new financial year

 

Programme 2: Recreation Development and Sport Promotion

Actual expenditure amounted to R1.3 billion (99.5 per cent) of the available budget of R1.3 billion. The programme underspent on its budget by R6.1 million (0.5 per cent) mainly under Goods and Services and Transfers and Subsidies and largely due to the delayed submission of invoices by the travel agency for travel and subsistence related to the SA Sports Awards which were hosted in March 2023. Underspending on Transfers and Subsidies is due to the late submission of infrastructure plans by the Department resulting in DPWI excluding these projects from the infrastructure plan which resulted in underspending.

 

Programme 2 achieved six (60 per cent) of its ten targets for the quarter. The following four targets were not achieved:

 

Target	Actual achievement as at 31 March 2023	Reason for deviation	Corrective action
89.5 per cent of national federations meeting 50 per cent or more of all prescribed Transformation Charter targets	0 per cent of the national federations were declared as having met 50 per cent or more of all prescribed Transformation Charter targets.	The transformation status could not be assessed due to late or non-submission of the datasheets by the national federations. Of the 19 federations due for submission, only 16 have submitted their data sheets and three (3) were outstanding at the end of the reporting period.	The Department sent reminders to federations with outstanding information as the achievement of this target is dependent on compliance by the national federations. The Department will fast-track the appointment of a service provider to compile the Eminent Persons Group (EPG) report.
90 000 people actively participating in organised sport and active recreation events	55 736 people actively participated in organised sport and active recreation events.	The protected strike of NEHAWU which lasted for two weeks in provinces during the fourth quarter hindered implementation of the programme.	While the quarterly target was not achieved, the Department has overachieved on the annual target of 315 000 people participating in the programme. Mitigation plans will be considered to overcome the effects of unplanned external factors.
1 000 schools, hubs and clubs provided with equipment and/ or attire as per the established norms and standards	625 of the schools, hubs and clubs were provided with equipment and/or attire as per the established norms and standards.	Delays in procurement due to expiry of the transversal tender and the NEHAWU strike affected the attainment of the fourth quarter target.	The Department will finalise the transversal tender and also improve oversight on implementation of and reporting against customised indicators.
Three (3) heritage legacy facilities (including the Resistance and Liberation Heritage Route [RLHR] sites) developed and/or maintained to transform national heritage landscape	One facility, the Dr JL Dube Amphitheatre, was developed and/or maintained to transform the national heritage landscape.	The Environmental Impact Assessment (EIA) for the Enyokeni (Isibhubhu) Cultural Arena was not approved pending further engagements with traditional leadership in KwaZulu-Natal Province.	Enyokeni (Isibhubhu) Cultural Arena The matter was escalated to Ministry to facilitate a meeting with the traditional leadership in the province.
		At the Sarah Baartman Centre of Remembrance, the contractor terminated a contract and vacated site in July 2021 due to contractual disputes with the implementing agent, i.e. DPWI.	Sarah Baartman Centre of Remembrance: The Department will follow up with DPWI regarding the formal acceptance of the project by the Development Bank of South Africa (DBSA) as the new implementing agent.

 

Programme 3: Arts and Culture Promotion and Development

Programme 3 achieved 16 (89 per cent) of its 18 targets for the quarter. The following two targets were not achieved:

 

Target	Actual achievement as at 31 March 2023	Reason for deviation	Corrective action
One (1) of monitoring reports on the implementation of a Social Compact for social cohesion and nation-building	0	The implementation is dependent on the existence of the Social Compact for social cohesion and nation-building, itself, a project that has not been finalised (signed off) because of dependency on other stakeholders.	The Department will set the target upon finalisation of the Social Compact and its implementation plan.
Eight (8) projects implemented through which target groups are supported.	0 While eight (8) non-profit organisations (NPOs) were appointed, the implementation of the projects could only commence mid-March 2023.	Because of departmental processes and decisions such as the change of funding model mid-year, the implementation of projects was delayed. Consequently, the eight appointed NPOs were unable to complete the projects and report.	The Department will finalise the revised plan for programme implementation, ensure assessment of proposals is moved forward to the first quarter of each year to give sufficient time for implementation and monitoring of beneficiary projects over the year, and provide necessary support to ensure adequate reporting.

 

Programme 4: Heritage Promotion and Preservation

Programme 4 achieved eight (89 per cent) of its nine targets for the quarter. The following two targets were not achieved:

Target	Actual achievement as at 31 March 2023	Reason for deviation	Corrective action
9 Treason Trial dictabelts and 24 Truth and Reconciliation Commission (TRC) Audio Tapes	0 Treason Trial dictabelts were digitised.	The archeophones were faulty and had to be taken for repairs and servicing in France.	Archeophones have subsequently been repaired and work should continue accordingly.
	322 Truth and Reconciliation Audio Tapes records were digitised.	The Department had increased capacity through the involvement in the project of an intern on a 24-month contract.

 

 

 

 

1. Fourth quarter selected performance highlights

Selected performance highlights include:

• One of the driving forces behind transformation in sport is the promotion of school sports. It should be noted that the annual target of 75 000 learners participating at the district school sport tournaments had already been achieved by the end of the third quarter. Against the target of 5 000 learners participating in tournaments in the fourth quarter, the actual achievement was 44 347.

 

• The development of South African sport and athletes is implemented through a coordinated academy system which contributes to the Department’s overall focus area to capacitate and professionalise the sport, arts and culture sector. At the end of the fourth quarter the Department overachieved its planned target of supporting 1 000 athletes by sports academies. The overachievement of 1 032 athletes supported was due to more district athletes requiring support and services from the provincial academies.

 

• The Mzansi Golden Economy (MGE) programme was initiated by the Department of Arts and Culture (DAC) in 2011 to unlock the potential of the arts, culture and heritage (ACH) sectors to create sustainable employment opportunities, contribute to economic development, and also promote and support arts education in schools through the placement of artists in schools. Projects that are supported through the MGE Programme in the creative industry include flagship projects, cultural events, public art, and touring ventures productions (including Africa Month). In the fourth quarter, thirty-six (36) projects in the creative industry were supported through the MGE programme while the planned target was 29 projects supported. The high number of applications received and the positive response from the Department led to a higher number of approved applications. Additionally, 322 artists were placed in schools to advance art education in schools.

 

• Despite challenges encountered with the finalisation of the Social Compact, the Department continues to implement projects and programmes that contribute to the overall national imperatives to build a socially cohesive nation. This is evidenced in the fourth quarter through, for example, the achievement of the support of the three planned moral regeneration projects, the implementation of seven (against a planned quarterly target of five) community dialogues/conversations as well as the implementation of nine social cohesion advocacy platforms (against a quarterly target of five) by the Social Cohesion Advocates. The latter overachievement was in response to relentless national challenges such as racism, femicide and gender-based violence.

 

• Monitoring and evaluating Government initiatives in the ACH sectors and the Cultural and Creative Industries (CCIs) are essential to developing meaningful programmes and projects which positively impacts the lives of practitioners while addressing social cohesion. The research arm of the Department, the South African Cultural Observatory (SACO) was established to a develop a comprehensive cultural information system which continuously captures cultural data and evaluate the implementation of a range of initiatives. SACO has produced 16 reports during the fourth quarter, thus achieving the planned quarterly and annual target.

 

1. Committee Observations
   1. Acknowledged the Department’s rate of expenditure but also expressed concerns about only achieving 81 per cent of the planned targets and noted that these need to be achieved fully for the benefit of the Sports, Arts and Culture Sector.
   2. Raised concerns about the Department’s vacancy rate and queried the progress made on filling vacancies, including that of the Director-General (DG).
   3. Enquired about the challenge to implement an automated system for reporting by public entities.
   4. Enquired about the obstacles in finalising and monitoring the Social Compact with social partners in the private sector, civil society and organised labour.
   5. Requested clarity on the matter of transformation in sporting federations.
   6. Required further insight from the Department on its sports academies programme.
   7. Enquired about the timeframes for the completion of heritage infrastructure projects, namely the Sarah Baartman Centre of Remembrance and Enyonkeni / Isibhubhu Cultural Arena.
   8. Sought further clarity on the Downtown Music Hub matter.

 

1. Responses to issues raised by the Committee
   1. The Department noted that the DG vacancy was advertised the shortlisting panel was formed however, it failed to find suitable candidates who met the criteria to move on to the next phase of the interviews. Through the guidance of Human Resources (HR) Policy on recruitment and selection, the Department is following the process which guides it should there be no suitable candidates available. The Department assured the Committee that it is expediting the appointment of the DG. In response to the overall vacancy rate, the Department reported that by the end of March 2023, the vacancy rate was 20.5 per cent. In the fourth quarter there were 43 exits/resignations and only nine (9) appointments. The Department is promoting employees internally and this does not aid in its efforts to reduce the vacancy rate however, through recruitment efforts, the current vacancy rate is 19.1 per cent. Not all posts are advertised at once as the Department is prioritising critical posts. Approximately 96 contract workers, who are qualified graduates have been recruited to minimise under expenditure on the CoE budget.
   2. While the Department followed due procedure, there was response to the tender to call for bids for an automated reporting system for public entities. Two issues have been identified in relation to the lack of responses, namely insufficient information in the proposal and the timing of the advertisement of the tender. The State Information Technology Agency (SITA) was approached to advertise the tender on behalf of the Department. In the meantime, SITA is assisting with the implementation of the system and has committed to having it live and functional within the current financial year.
   3. The monitoring of the Social Compact depends on the finalisation of the compact itself. This is a contract that requires all stakeholders, labour, civil society, business sector, to use their own resources to build a socially cohesive nation. The National Economic Development and Labour Council (NEDLAC) raised concerns around streamlining the process. The Department notes that perhaps the task of finalising the Social Compact is improperly placed and the Presidency is probably a better suited space for this function.
   4. On the matter of the transformation targets, the Department reported that at the end of the financial year, when it carried out an assessment, the South African Football Association (SAFA) had submitted the outstanding information. However, Chess SA and Basketball SA has indicated that they are experiencing challenges. Failure to comply comes with penalties including federations not being able to bid to host international events and the Department withholding funding. The Department is aware that the gathering of information is a cumbersome process for the federations and as such the Department’s IT function is working to reduce this burden.
   5. The Department is working with the provinces to identify athletes either at the national level or the federal level. There are instances where many athletes are performing outstandingly at international events, however the code is not really transforming in terms of demographics. Despite this challenge, several promising athletes are being supported through the academies programme. The Department is also reviewing the programme to eliminate some of the deficiencies identified.
   6. The Department is in the process of appointing a new contractor to complete the Sarah Baartman project. Work is underway to address the challenges in respect of the Enyokeni / Isibhubhu project. The Department also cited the example of under expenditure in Limpopo Province on the Conditional Grant infrastructure due to the appointment of alternate contracts to flag that infrastructure development is a challenge across all provinces. This is mainly due to contractors who are unable to complete the task and challenges such as work stoppages and community disruptions.
   7. The Department confirmed that R6 million is transferred annually to the Downtown Music Hub. There are however matter pertaining to the building and asset ownership that need to be settled. A team consisting of the National Arts Council (NAC), the Department and Downtown Music Hub has been put together to work through these challenges.

 

1. Recommendations
   1. Noting the challenges the Department experienced in obtaining the required information from selected sporting federations, the Department should fast-track obtaining the required, outstanding information and expedite the process of compiling the Eminent Persons Group (EPG) report.
   2. The Committee, being cognisant of the fact that the country is still divided across racial lines and that we have still not achieved true cohesion, encouraged the Department to continue its work in the sport, arts and culture sector to build social cohesion.
   3. The Committee called on the Department to continue with its efforts to reduce its current vacancy rate.

 

1. References

National Treasury. (2022). Estimates of National Expenditure. Pretoria, National Treasury.

National Treasury. (2022a). 2022/23 1st Quarter Expenditure Report to the Standing Committee on Appropriations. Pretoria, National Treasury.

National Treasury. (2022b). 2022/23 2nd Quarter Expenditure Report to the Standing Committee on Appropriations. Pretoria, National Treasury.

National Treasury. (2023). 2022/23 4th Quarter Expenditure Report to the Standing Committee on Appropriations. Pretoria, National Treasury.

Department of Sport, Arts and Culture. (2022). Annual Performance Plan 2022/23. Pretoria, Department of Sport, Arts and Culture. Pretoria, National Treasury.

Department of Sport, Arts and Culture. (2022a). First Quarter 2022/23 Performance Report. Presentation to the Portfolio Committee on Sport, Arts and Culture, 23 August 2022.

Department of Sport, Arts and Culture. (2023). Second Quarter 2022/23 Performance Report. Presentation to the Portfolio Committee on Sport, Arts and Culture, 18 April 2023.

Department of Sport, Arts and Culture. (2023a). Third Quarter 2022/23 Performance Report. Presentation to the Portfolio Committee on Sport, Arts and Culture, 18 April 2023.

Department of Sport, Arts and Culture. (2023b). Fourth Quarter 2022/23 Performance Report. Presentation to the Portfolio Committee on Sport, Arts and Culture, 05 September 2023.

 

The Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) reserved their rights in support of the Portfolio Committee Report on the 2022/23 fourth quarter financial and non-financial performance of the Department of Sport, Arts and Culture

 

Report to be considered.

 

---

[1] Department of Sport, Arts and Culture (2022).

[2] National Treasury (2022a).

[3] Department of Sport, Arts and Culture (2022a).

[4] National Treasury (2022b).

[5] Department of Sport, Arts and Culture (2023).

[6] Department of Sport, Arts and Culture (2023a).

[7] National Treasury (2023).

[8] Department of Sport, Arts and Culture (2023b).