ATC110329: Report 2011/12 Budget Vote 20 & Strategic Plan for 2011-2015 of Department

Sports, Arts and Culture

REPORT OF THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON THE 2011/12 BUDGET VOTE 20 AND STRATEGIC PLAN FOR 2011-2015 OF THE DEPARTMENT OF SPORT AND RECREATION, DATED 29 MARCH 2011

 

1.         Background and Overview

The Portfolio Committee on Sport and Recreation, having considered the directive of the National Assembly (NA) to consider and report on the 2011/12 Budget of the Department of Sport and Recreation tabled by the Minister for Sport and Recreation in terms of the requirements of the Public Finance Management, Act 32 of 2000, reports as follows:

 

2.         Introduction

 

2.1 In compliance with the NA referral, the Portfolio Committee held budget vote hearings from 22-23 March 2011 with the Department of Sport and Recreation to consider the referred budget and strategic plan by the NA.

 

2.2 The statutory bodies and other entities that formed part of the budget hearings included: Boxing South Africa, represented by the Acting Chief Executive Officer, Mr Loyiso Mtya; ADTK Trust, represented by the Sports Development Manager, Mr A Nesengani; South African Rugby Union, Deputy President, Mr Mark Alexander; South African Sport Confederation and Olympic Committee, represented by the Chief Financial Officer, Mr Vinesh Maharaj; and the Transformation and Anti-Racism Committee, represented by the National Secretary, Dr Asad Bhorat.

 

2.3 The Executive and officials were represented by the Hon Fikile Mbalula, Minister of Sport & Recreation; Hon Gert Oosthuizen, Deputy Minister of Sport and Recreation; Ms Sumayya Khan, Acting Director General of the Department of Sport and Recreation (SRSA); Mr M Matlala, Chief Financial Officer of SRSA; Ms Lulu Sizani, Chief Director of Corporate Services; Prof Singh, Director of Special Programmes (SRSA); Ms Kelly Mkhonto, Chief Director for Mass Participation Programme; Mr Lichakane Phori, Committee Secretary; Ms N Mahlanyana, Committee Assistant; Mr Mphumza Mdekazi, Researcher for the Committee; Ms Zukiswa Jara, Executive Secretary to the Chairperson.

 

3. Briefing by the Hon Minister of Sport and Recreation, Mr Fikile Mbalula

 

Minister of Sport and Recreation, Mr Fikile Mbalula led the briefing and explained that the Department of Sport and Recreation had formulated a Strategic Plan for 2011-2015 which underpinned the strategic objectives of the department and his roadmap for optimal performance and functional excellence.

 

He highlighted the six major focus areas of his roadmap namely, (1) accelerating transformation; (2) rekindling and revitalization of schools sport; (3) remodeling the institutional architecture of the department; (4) fostering mass participation; (5) reinvigorating the recreation cohort; and (6) mobilizing sufficient funds and funding for optimal programme execution.

 

3.1. Accelerating transformation

The Minister informed the Committee that during the current financial year the Department will be hosting a national sports indaba. He stressed that this sport sector forum will provide an elaborate framework for the national sports plan to guide South African sport. This Indaba will also emerge with architecture for a Transformation Charter, to assist in a sustained and integrated transformation framework. Equally, various policies and legislative mechanisms will be overhauled during this incumbent period.

 

All stakeholders in sport and recreation will be invited to make contributions towards this transformation charter which was underpinned by the “White Paper on Sport and Recreation”. The White Paper is in its final drafting stage and the Ministry has received submissions and comments from the public. Once the final draft has been completed, the White Paper would be submitted to Parliament for comment and approval.

 

3.2. Rekindling and revitalization of schools sport

The Minister informed the Committee that school sport remains a bedrock for talent identification, nurturing and mass participation in sport. The Department was in the process of finalising the memorandum of understanding with the Department of Basic Education to make schools sport participation and development an integral part of a total scholarship.

 

3.3. Remodelling the institutional architecture of the department

The Minister pointed out that the Strategic Plan focuses on unlocking the real value of the Department’s mandate, both in policy and practical programmatic implementation. It is aimed at ensuring that as many South Africans as possible have access to sport and recreation activities, particularly those from disadvantaged communities. By the same token the Department will sharpen its resolve to support the increase in international sport successes by strengthening performances at all levels of participation.

 

In addition, the Minister stressed that these epic objectives required that the Department work together with all stakeholders, including Parliament, the South African Sports Confederation and Olympic Committee (SASCOC), national federations as well as our communities, to ensure that our value proposition is fully unlocked.

 

3.4. Fostering mass participation

 

The Minister pointed out that the Strategic Plan focuses on unlocking the real value of the Department’s mandate, both in policy and practical programmatic implementation. It is aimed at ensuring that as many South Africans as possible have access to sport and recreation activities, particularly those from disadvantaged communities.

 

By the same token the Department will sharpen its resolve to support the increase in international sport successes by strengthening performances at all levels of participation. The Minister explained that the above can be achieved through youth camps as strategic anchor to foster social cohesion in order to ensure that young people work co-operatively across race, ethnicity, gender, geographical location, class, language and creed.

 

3.5. Reinvigorating the recreation cohort

 

The Minister explained that the above can be achieved through youth camps as a strategic anchor to foster social cohesion in order to ensure that young people work co-operatively across race, ethnicity, gender, geographical location, class, language and creed.

 

3.6. Mobilizing sufficient funds and funding for optimal programme execution.

 

The Minister emphasized that all the above strategic programmes will not be realised unless sufficient resources were made available. The Department will do everything possible to secure additional financial resources, but primarily, the baseline allocation from National Treasury will have to be increased. Sport is an economy that continues to contribute immensely to our Gross Domestic Product.

 

4. Presentation on the Strategic Plan 2011-2015 of the Department of Sport and Recreation

 

The Director General of the Department of Sport and Recreation, Ms Sumayya Khan led the presentation of the Department’s Strategic Plan for 2011-2015 to the Portfolio Committee. Ms Khan indicated that the Department had received a new format from National Treasury.  The outcomes oriented approach had been followed in the formulation of the Strategic Plans.  The performance plan was in effect the business plan for the Department.  The 2011 – 2015 strategic plans were focussed on increasing participation and the level of international competition.  The plan included inputs from previous strategic plans. 

 

Ms Khan also listed the statutory bodies that fell under her department such as SAIDS and BSA.  The PFMA regulated financial activities.  The next part of the strategic plan dealt with legislation being processed. The most significant piece of legislation to be enacted will be the SA Combat Sports Bill during the year under review.

 

Ms Khan said that there were invaluable international relationships in place.  SRSA took note of the United Nations resolutions on the role of sport and physical education.  The Department was guided by the Olympic Sport Convention.  Government had various outcomes.  SRSA was outlined to Government's Outcome 12.  The benefits of sport would contribute to an inclusive and involved citizenship.  Sport would be used as a means of securing national cohesion.

 

Ms Khan cited the strategic imperatives of the Department, namely transformation, school sport, institutional mechanisms, mass mobilisation, recreation and funding.  Transformation required that other role players should be involved.  SASCOC was developing its own transformation charter.  Their document and that of SRSA had been merged and they were now working towards a single, unified document.  In terms of school sport, there had been considerable discussion already. The Department was working closely with national sports federations.  It had developed a document and was currently interrogating it.  It should be ready to be presented to the political principals soon.

 

Ms Khan informed the Committee that there had been discussions on the MIG with DHS and COGTA. There had been fruitful discussions on maintenance and integrated planning.  Additionally, much debate took place over the Sports Councils. Furthermore a discussion was needed with SASCOC. The Department realised that the academy system was ineffective. Demographics were not being addressed adequately. Coaching was a key element to success. SASCOC was taking the lead. A coaching conference had been held which had led to a draft framework. It would impact on the way school sport would move forward. The draft framework was expected to be complete by November 2011.

 

The presentation focused on the three key strategic programmes of the Department namely, Mass Participation, Sports Development and High Performance.

 

4.1. Mass Participation Programme

4.1.1 Ms Khan stated that Sport and Recreation South Africa (SRSA) should continue to pursue initiatives that increase the number of participants in Sport and Recreation. The Department has to broaden its focus to the area of recreation and strengthen its relationship with the Department of Basic Education on the delivery of the school sports programme. He further indicated that the department intends to increase the mass participation base through effective sports promotion programmes and intensive media campaigns.

 

4.2Sports Development

4.2.1 Ms Khan indicated that the Department intends to focus on facilitating the transition from mass based programmes to high performance through coordinating and monitoring the important areas of talent identification and development as well as the delivery of scientific support to national development athletes. The development programmes would be supported by an effective national athlete tracking system. Furthermore the Department intends to roll out a national sport facilities plan. The sport facilities plan would enable the department to monitor the use of facilities and ensure proper maintenance thereof.

 

4.3. High Performance

4.3.1 Ms Khan informed the Committee that the Department intends to improve working relations with its key strategic partner in nourishing talent in high performance sport in our country. Therefore SASCOC becomes the relevant strategic partner of the department since its mandate is to deliver in the focus area of high performance.

 

The department intends to improve South Africa’s international ranking through giving adequate scientific support to our athletes.  In conclusion, she further stated that the Department realised that the above strategic focus areas needed to be supported by strong a regulatory framework, adequate financial resources, reliable sports information and functional sports academies. The Department will continue to work closely with departments such as Basic Education, Tourism and Health in order to promote the spirit of corporative governance. The department further intends to finalise the White Paper on sport and recreation that will set the tone for the blueprint for sport in South Africa. The key focus of this policy document would be the transformation of sport and the promotion of excellence in sport.

 

5. Budget Allocations and Variances in Expenditure: 2011/2012

 

The Committee was informed that the 2011/12 Sport and Recreation Budget is essentially divided into five programmes namely: Administration, Sport Support Services, Mass participation, International Liaison and Events, and Facilities Coordination, which differs from the previous year.

 

Programme

Budget

 

 

 

NominalRandchange

RealRandchange

Nominal % change

Real % change

R million

2010/11

2011/12

2012/13

2013/14

 2010/11-2011/12

 

 2010/11-2011/12

 

Administration

  88.9

  110.7

  112.6

  121.5

  21.8

  16.7

24.52 per cent

18.82 per cent

Sport Support Service

  104.3

  158.6

  182.9

  208.4

  54.3

  47.0

52.06 per cent

45.10 per cent

Mass Participation

  473.2

  502.1

  524.3

  551.0

  28.9

  5.9

6.11 per cent

1.25 per cent

International Liaison and Events

  22.2

  23.0

  24.3

  25.7

  0.8

-  0.3

3.60 per cent

-1.14 per cent

Facilities Coordination

  6.7

  8.2

  8.3

  8.9

  1.5

  1.1

22.39 per cent

16.78 per cent

2010 FIFA World Cup

  560.1

 

 

 

-  560.1

-  560.1

-100.00 per cent

-100.00 per cent

 

 

 

 

 

 

 

 

 

TOTAL

 1 255.4

  802.6

  852.4

  915.5

-  452.8

-  489.6

-36.07 per cent

-39.00 per cent

 

 

 

 

 

 

 

 

 

1. Source: 2010 Estimates of National Expenditure (ENE)

 

5.1 Programme 1Administration

5.1.1Administration has been allocated R 110.7 million, which represents an average nominal increase of 24.52 per cent compared to the 2010/11 financial year. Expenditure has increased from R 88.9 million in 2010/11 to R110.7 million in 2011/12. In the last financial year the percentage of increase was at an average annual rate of 24 per cent, mainly due to the merger of the former South African Sports Commission with Sport and Recreation South Africa in 2007/08.

 

It remained unclear as to why this expenditure repeatedly recurred over the years without stop. Additionally, the spending on compensation of employees grew at an average rate of 33.6 per cent due to this merger. However, spending slowed in 2008/09 and 2009/10 due to a number of unfilled vacant posts.

 

5.2 Programme 2Support Services Programme

5.2.1 Support Services programme has been allocated R102.1 million, which represented an average nominal increase of -17.79 per cent compared with the 2009/10 financial year. The reason was because this programme increased substantially from R 81.3 million in 2006/07 to R 124.2 million in 2009/10, at an average annual rate of 15.1 per cent. The 42.7 per cent growth in spending in 2009/10 was due to the rollover of R 15 million from 2008/09 for the training of volunteers for the 2010 FIFA World Cup. The Portfolio Committee on Sports could make a follow up on what these volunteers yielded both in terms of the impact on the ground and the transfer of skills.

 

The Scientific Support sub-programme allocation was projected to grow at a much slower average annual rate of 24.3 per cent over the medium term, due to increased expenditure on consultants to train more athletes through the sport science institute in preparation for the 2012 Olympics and for research on medical and scientific interventions. If this is a case, the committee should be concerned with the culture of hiring consultants, while academies and high performance centres are seen as a spring board circumventing athletes in the annual report. During this year the budget for this programme moved from 104.3 to 158 million, with a nominal increase of 52.06 per cent due to the above stated reasons. This is a programme that is intended to provide support to public entities.

 

5.3 Programme 3: Mass Participation Programme

5.3.1 The Mass participation programme grew at an average annual rate of 45.1 per cent from 2006/07 to 2009/10, mainly due to the expansion of a mass participation grant and additions to the conditional grant for school sport projects in 2006/07 and the 2010 legacy projects in 2007/08. This, together with additions for mass mobilisation and the legacy project, increased the budget for the Community Mass Participation sub-programme by an average annual rate of 50.5 per cent between 2006/07 and 2009/10. Expenditure in the sub-programme is expected to grow at a slower average annual rate of 5.4 per cent over the medium term, due to the completion of the 2010 mass mobilization programme.

 

5.3.2 School Sport sub-programme budget decrease at an average annual rate of 9.9 per cent over the MTEF period. This is because the costs of accommodation and transport for learners in national competitions, previously carried by the national department, will in future be shared by provincial departments. The Portfolio Committee should enquire about this as it is not reflecting the same facts from the annual report. This shift is evident in the decline in projected expenditure on venues and facilities from R 25.5 million in 2009/10 to R 4 million in 2010/11 and on transport provided from R 7 million in 2009/10 to R 4.5 million in 2010/11. The Portfolio Committee will be expected to enquire about the nexus between basic facilities and school sport programme. This year there has been an increase in the budget of between 473.2 to 502 million for this program, with a nominal increase of 6.11 per cent. Mass participation is a programme intended to promote programmes by focusing on increasing the number of participants in sport and recreation.

 

5.4 Programme 4: International liaison and events

5.4.1International liaison and events is meant to negotiate government-government agreements and manages the ensuing programmes of cooperation. Spending in this programme was projected to grow to R 26.8 million at an average annual rate of 42.8 per cent between 2009/10 financial year and the current year. This was due to the addition of promoting sport tourism to sub-programme’s international sport commitments. This entails organising hospitality centres during major events such as the Olympics, Paralympics and All Africa Games as well as the promotional activities at the 2010 FIFA World Cup. This year the budget moved from R22.2 million to R23.0 million, with a nominal increase of 3.60 per cent and the real change of -1.14 per cent.

 

5.5 Programme 5: Facilities Coordination     

5.5.1 The role of facilities coordination was planning and lobbying for the provision of sport and recreation facilities by municipalities, in accordance with the national sport and recreation facilities plan last year. There was a sub-programme which was also involved in overseeing the donor funds received from the German development bank, for developing the infrastructure associated with the youth development against violence through sport project. Funding here was used mainly for the compensation of department employees and other personnel related costs. Local authorities and other relevant stakeholders for constructing and managing facilities are supposedly in place to ensure compliance with national standards. This year the programme received R8.2 million compared to the R6.7 million received in 2010/11. This transpires with a nominal percentage change of 22.39 per cent.

 

5.5.2 The 2010 FIFA World Cup Unit dealt with infrastructure related to the 2010 FIFA World Cup and transfers the 2010 World Cup stadiums development grant to municipalities. As part of the national consultative technical team, it liaised with FIFA and the South African local organising committee’s technical committees on stadium development requirements. These include: ensuring that stadium authorities and host cities comply with conditional grant requirements for developing stadiums; providing guidance on and monitoring the rollout of infrastructure projects, such as transport networks, ICT and other support services, municipalities and relevant departments; coordinating and resolving any problems likely to hinder progress in meeting deadlines for delivering infrastructure and using funds to settle the final accounts related to stadium construction (2010 ENE). For the current financial year there has been a dramatic decrease of -560.1 per cent in both real changes in Rands and in nominal change. 

 

6.         Public Hearing on the Budget Vote 20

The Committee called for oral submissions on the 2011/12 Sport and Recreation Budget and various sport stakeholders made submissions. The summary of the submissions follows hereunder:

 

6.1 South African Rugby Union: The submissions during the hearing were made by SA Rugby Deputy President, Mr Mark Alexander. SA Rugby received an allocation amounting to R100 000 annually from the department. Nonetheless, SA Rugby was still waiting for the transfer of the allocations into its coffers and the delays were hampering development of rugby in the rural areas. Mr Alexander submitted that SA Rugby had established a good working relationship with the Department of Sport and Recreation through the leadership of the new Minister, Hon Fikile Mbalula.

 

6.2 South African Sport and Olympic Committee: The allocations made towards support for high performance sport were fairly satisfactory compared with other countries competing in the international Olympics for team preparation. SASCOC noted that there were continuing discussions between itself, LoveLife and the Department of Sport & Recreation. The Confederation intended to lead the campaign to educate athletes about the scourge of HIV/AIDS and life skillsThe Confederation further expressed its concern over the fact that the Department was allocating massive funding to the LoveLife programme without value for sports development. The Confederation further informed the Committee that sports kits and equipment in most provinces were being bought and stored and not given to sports people to utilise them as was intended.

 

6.3 Boxing South Africa: Boxing South Africa was represented at the hearings by its Acting Chief Executive Officer, Mr Loyiso Mtya. He indicated that the organisation was not satisfied with the R10.5 million allocated to BSA by the department for the financial year 2011/2012. Although the budget allocated to the BSA had increased tremendously by about 70% in comparison to the previous financial year. The BSA had to comply with its tax obligations towards the South African Revenue Services which was owed a substantial amount of R4.5 million. Therefore a mere 17 % of the budget allocation went towards the development of boxing and its administration. However there remains a shortfall regarding the need to revive the project of “Baby Champs” with annual costs of approximately R1, 6 million.

 

6.4 Transformation and Anti-Racism Committee: The submissions during the hearings were made by Mr Asad Bhorat, Secretary for TARC. Dr Bhorat’s submission on the budget was clearly aimed at re-aligning the key programmes of the department with the transformation imperative. He stressed the need for a wholesale transformation drive which comprises players, quotas, composition of boards, administration and refereeing. He noted that racism and other forms of discrimination still persist in sports, particularly rugby and they needed to be eradicated through concerted efforts by the state and all progressive sporting sectors.

 

6.5 ATDK School Sports Facilities Initiative: The presentation on behalf of ATDK was submitted by the Managing Director, Mr A NesenganiHe stated that ATDK was a construction company which sought to solicit funding for the building of sports facilities in schools from disadvantaged and rural schools. The company hoped to solicit funding through the South African Football Association (SAFA) coffers which were received from the 2010 FIFA Legacy Projects.

 

The company aimed at building about 158 multi-purpose sports centres around the country. They informed the Committee that they had held discussions with the SAFA executive about this infrastructure development initiative. The project for building school sports facilities will ignite more interest in sport and recreation amongst school children and the unemployed youth in our country. The Committee was further informed that maintenance costs for building these basic sports facilities were relatively low.

 

7. Committee Concerns and Challenges

 

7.1 The Committee raised serious concern over the fact that the strategic plan of the department was not underpinned by the measurable business plans.

 

7.2 The Committee expressed concern that the department had no monitoring mechanism to ensure that federations and other sports bodies were implementing the resolutions of the “Sports Indaba”.

 

7.3 The Committee further expressed a serious concern over the lack of consultation and cooperation between the Departments of Basic Education and Sport and Recreation in the implementation of a better school sports programme.

 

7.4 The Committee further expressed serious concern over the budget decrease for school sport during the year under review in relation relative to the total number of schools in disadvantaged and rural communities.

 

7.5 The Committee further expressed its concerns around the lack of monitoring and control of foreign sports personnel plying their trade in South Africa by the Department of Sport and Recreation.

 

7.6 The Committee expressed its concern over the Department’s lack of a monitoring tool to ensure that legislation passed by Parliament was complied with by national federations and related civil society sports bodies.

 

7.7 The Committee further expressed concern over the allocation given to the Love-Life programme. The R27 million allocation to Love-Life was unjustified since no tangible evidence existed to support the view that such allocations were beneficial towards sport development and the fight against HIV and AIDS amongst our youth.

 

7.8 The Committee expressed serious concern over the glaring conflict of interest within the Distribution Agency of the National Lotteries Board. The composition of the members of distribution agency responsible for funding for sports was, in the main officials of numerous sports federations who are supposed to adjudicate on applications from same federations.

 

7.9 The Department continued to be faced with the challenge of a disjuncture between its mandate and what it actually does on the ground in the delivery of sports and recreation services to the country.

 

7.10 The Committee raised serious concern regarding substance abuse by the youth in our country and urged the Department to partner with South African Institute for Drug Free Sport (SAIDS) and Department of Basic Education in order to facilitate easy access to schools for drug testing.

 

7.11 The Committee expressed serious concern over the continued funding of Love Life programmes from the budget of Sport and Recreation notwithstanding the lapse of the agreement with Kaiser Foundation.

 

8. Committee’s Deliberations and Recommendations

 

Having deliberated on the 2011/12 Budget Vote 20, the Portfolio Committee on Sport and Recreation recommends as follows

 

8.1 The Director General for Sport and Recreation should table quarterly progress reports to Parliament in respect of the departmental performance in the various Provinces which were beneficiaries of the DORA Grant. The Department should appoint staff personnel dedicated to all nine provinces in order to monitor the use of conditional grants for sports development.

 

8.2 The quality of data compilation with regard to service delivery in the arena of sport development in the Provinces should be improved by the Department of Sport and Recreation.

 

8.3 The Department of Sport and Recreation should provide a comprehensive report on the allocation made through Love Life funding for the sports clubs and organisations dedicated to the development of sport at grassroots level and in rural areas.

 

8.4 The Department should continue to engage with the Department of Basic Education in an endeavour to revive and improve the standard of sport in public schools. The Committee further expressed a serious concern over the budget decrease for school sport during the year under review relative to the total number of schools in disadvantaged and rural communities.

 

8.5 The Department of Sport and Recreation should assist municipalities in the Province to improve critical skills shortages and the filling of vacant positions through sports tourism and programmes aimed at producing sports facilities managers

 

8.6 The Committee expressed the view that all sports facilities had to comply with norms and standards set out in the regulations and guidelines by the Ministry of Sport and Recreation.

 

8.7 The Committee recommended that the School Sports facilities initiative be deferred to the Department of Sport and Recreation which will in consultation with the Department of Public Works consider this initiative aimed at building sports facilities in our schools.

 

8.8 The Committee strongly recommended that the Minister of Sport and Recreation in collaboration with the Minister of Trade and Industry should find a mechanism to resolve the glaring conflict of interest within the Distribution Agency of the National Lotteries Board.

 

8.9 The Committee recommended that the Department needed to find a mechanism to coordinate the mass participation programmes with Sports Councils, School Governing Bodies and SA Rugby to share the costs of funds allocated for school sports.

 

8.10 The Department should consider increasing the allocations made for the support of high performance sport to assist our team of athletes to perform better in the international arena.

 

8.11The Department should integrate the resolutions of the “Sports Indaba” into their strategic objectives and closely monitor the implementation thereof by the sports bodies and federations. The proposed second national “Sports Indaba” must not become a mere talk-shop but review previous resolution and design an effective implementation and monitoring strategy.

 

8.12 The Department needed to fill all vacant posts within its ranks in line with President Zuma’s clarion call for job creation and reward good performance. The continued lack of permanent appointments at higher level within the Department was a major challenge which called for urgent corrective measures.

 

8.13 The Committee strongly recommended that National Treasury should increase the baseline allocation for sport and recreation given the immense contribution made by sporting activities to Gross Domestic Product of the country.

 

8.14 The Committee strongly recommended that the Department should submit its Operational Plans with costs implications to the Portfolio Committee.

 

8.15 The Committee strongly recommended that a levy of one rand should be collected from each ticket sold during sports events and levies saved towards sport development programmes to emulate countries such as Canada and Australia.

 

9. Conclusion

 

Having considered the budget vote and strategic plan of the Department of Sport and Recreation, the Portfolio Committee recommends that the House endorse the 2011/12 Budget Vote of the Department of Sport and Recreation.

 

Report to be considered

Documents

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