ATC130503: Report of the Portfolio Committee on Home Affairs on the Annual Performance Plan and Budget Vote 4 of the Department of Home Affairs and its Entities, dated 30 April 2013

REPORT OF THE PORTFOLIO COMMITTEE ON HOME AFFAIRS ON THE ANNUAL PERFORMANCE PLAN AND BUDGET VOTE 4 OF THE DEPARTMENT OF HOME AFFAIRS AND ITS ENTITIES, DATED 30 APRIL 2013

The Portfolio Committee on Home Affairs having met with the Department of Home Affairs (DHA), Government Printing Works (GPW), Film and Publication Board (FPB) and the Electoral Commission (EC) reports as follows:

1. Introduction

The Portfolio Committee on Home Affairs has a mandate to conduct oversight over the Department of Home Affairs and its entities (GPW; FPB and EC). The Committee met with the Department of Home Affairs on 19 March 2013, Government Printing Works and the Film and Publication Board on 26 March 2013 and the Electoral Commission on 16 April, 2013 to scrutinize their Strategic Plans, Annual Performance Plans and budgets. This was in order to ensure that their budgets were aligned with their respective Strategic Plans, Annual Performance Plans and priorities of Government.

2. Presentation by the Department of Home Affairs (DHA)

The mandate of DHA is derived from various acts of Parliament and policy documents. The DHA’s services are categorised into two broad categories, namely; Civic Services and Immigration Services. These two broad categories must ensure the efficient determination and safeguarding of the identity and status of citizens and provide for the regulation of immigration to ensure security, promote development and fulfil South Africa ’s international obligations.

2.1. The DHA’s Strategic goals/ outcomes over the medium term were to:

· Secure South African citizenship and identity through regulating and overseeing the provision of enabling documents such as identity documents and passports and maintaining the National Population Register (NPR).

· Ensure effective and secure management of immigration to facilitate the movement of people through ports of entry.

· Provide services to the public that are efficient, accessible and corruption free.

The above are in line with the three Outcomes of Government that apply to the DHA; namely;

Outcome 3: All people in South Africa are and feel safe.

Outcome 5: A skilled and capable workforce to support an inclusive growth path.

Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

Under each outcome, the department set strategic objectives in order to achieve that particular outcome.

Strategic objectives for Outcome 1: To Secure South African citizenship and identity:

· To ensure that the registration at births is the only entry point for South Africans to the NPR. The DHA planned to ensure that 642 000 births were registered within 30 days; 40 additional health facilities were operational for online birth registration and eight additional stakeholder forums were launched and functional during the financial year 2013/14. The Late Registration of Births (LRB) was reported as a major problem and the DHA planned to ensure that a strategy was developed and implemented in nine (9) provinces to reduce LRB.

· To issue Identity Documents (IDs) to citizens turning 16 years of age and above. The DHA target is to issue 100 000 ID Smart Cards in 2013/14 financial year. The DHA piloted with 100 ID Smart Card in 2012. The initial target for piloting was 2000 ID Smart Card in 2012 and it was reduced to 100 ID Smart Card so that the DHA could manage the pilot efficiently. The ID Smart Cards will replace the current green ID . It was reported that the rollout of the ID Smart Cards will be done in 2013. The Minister of Home Affairs will detail the rollout plan during the Budget Vote briefing scheduled to take place on 9 May 2013. By 2015/16 the DHA will have issued 8 million ID Smart Cards to citizens.

· To ensure the registration and identification of all South African citizens and foreign nationals to enhance the integrity and security of identity. In order to implement the ID Smart Card, offices of the DHA will rollout Live Capture functionality for passports and IDs to 70 offices nationally.

Strategic Objectives for Outcome 2: Immigration managed effectively and securely in the national interest including economic, social and cultural development:

· To ensure a secure, responsive and flexible immigration regime in support of national security, priorities and interests. The DHA planned to develop an immigration and refugee policy for consultation. The policy will deal with management of asylum seekers and refugees and economic migrants within Southern African Development Community (SADC) and attracting and retention of migrants with critical skills.

· To implement effective and efficient asylum seeker and refugee management strategies and systems. The DHA will ensure that One Status Determination Committee (SDC) with a minimum of two subcommittees is established and operational in three Refugee Reception Offices (RROs) in the country.

· To facilitate the efficient movement of bona fide traveller to support national interests, and to prevent and prohibit the movement of undesirable persons in the interest of national security. The Border Management Agency (BMA) will be established under the responsibility of the DHA and it will ensure that an operating model was developed for approval by Cabinet. A Draft Bill for the BMA will be submitted to Cabinet for approval.

The DHA will roll out an infrastructure development programme to 11 priority ports of entry to improve residential and office accommodation. An additional 13 ports of entry will be equipped with the Enhanced Movement Control System (EMCS) and biometric technology will be piloted at the OR Tambo International Airport (ORTIA). The e-permitting system will be designed and approved in 2013.

· To contribute towards realising a positive skills migration trend of around 50 000 migrants annually. The DHA will approve a strategy to facilitate the attraction and retention of foreign migrants with critical skills and issue 20 000 permits as per approved skills list during 2013/14.

Strategic Objectives for Outcome 3: A service that is efficient, accessible and corruption free

· To transform the culture of the organisation in support of securing identity, citizenship and international migration. The DHA will enrol and train 600 newly appointed officials in the National Certificate: Home Affairs Services. It will further train 100 managers at senior, middle and junior management in leadership development programmes.

· To ensure ethical conduct and a zero tolerance approach to corruption the DHA Investigations Case Management System will be customised and tested and ready for implementation and accessible to all Justice, Crime Prevention and Security (JCPS) stakeholders. The DHA will conduct an anti-corruption awareness campaign. It is planned that 85% of the misconduct cases will be finalised within 60 working days.

· To obtain a clean audit report. The target was for the DHA to receive an unqualified audit report for the 2013/14 financial year. A target of 100% of valid invoices is to be settled within 30 days of being certified.

· To ensure secure, effective, efficient and accessible service delivery to clients. The DHA planned to ensure that 15 offices were refurbished and vacant funded posts were filled within six (6) months. It was reported that 95% of first issue IDs and 95% of re-issued IDs will be issued within 54 and 47 working days respectively for all applications within South Africa .

The DHA will ensure that 95% of machine readable passports (manual process) and 97% of machine readable passports (electronic process) will be issued within 24 and 13 working days respectively for applications within South Africa .

Fifty Percent (50%) of permanent residence permits will be issued with within eight months for applications collected in South Africa and 85% of temporary residence permits for critical skills are to be issued within eight weeks for applications processed within South Africa and abroad.

2. 2 significant achievements during 2012/13 financial year

· The DHA was on target to achieve the annual target of 594 000 births registered within 30 days and the annual target of 80 additional health facilities connected for online registration of births and deaths is likely to be achieved.

· Between October and December 2012, the DHA finalised 27 750 Late Registration of Births cases out of the 30 900 received.

· The DHA issued 787 949 IDs to the 16 year olds and above by the end of the third quarter. Progress was made in developing specifications and testing of the ID Smart Card.

· The unabridged birth certificate was launched on 4 March 2013.

· The DHA contributed to the successful hosting of the African Cup of Nations (AFCON) in January 2013.

· The DHA secured office accommodation at Cape Town Harbour that will house all departments that function in the maritime environment.

· The Home Affairs Learning Academy , working with providers delivered several certificate courses of high quality to officials. This included a National Certificate: Home Affairs Services which had been piloted with 272 officials.

· The settlement of invoices within 30 days had increased from 54% to 86% following the introduction of an invoice/payment tracking register.

2. 3 Key Strategic Priorities over the Next three Years were reported as follows:

· New policy and legislation on immigration.

· Asylum seeker management.

· Establishing the Border Management Agency (BMA).

· Permit Transformation.

· Infrastructure at Ports of Entry.

· Eradication of the Late Registration of Births and duplicates.

· Ensure all citizens of 16 years and older apply and receive IDs.

· The Department of Home Affairs and its officials take steps to protect the NPR.

· Implement Live Capture, ID Smart Card, E-document management, a paperless environment and the National Identification System.

· Ensuring that all necessary controls, processes and systems are in place.

· Establishing sound leadership, management and organisational discipline at all levels and build a strong Monitoring and Evaluation function supported by reliable management information.

2.4 Budget of the Department of Home Affairs

The DHA has three budget programmes, namely, Administration; Citizens Affairs and Immigration Services.

2.4.1. Programme 1: Administration

The programme provides leadership, management and support services to the Department of Home Affairs.

2.4.2. Programme 2: Citizens Affairs

The programme provides secure, efficient and accessible services and documents for citizens and lawful residents. The programme provides the management of the branch for both the head office and frontline offices and regulates all matters relating to the NPR. These include maintaining an accurate register of all citizens and immigrants who had acquired the right to permanent residence; registering births, deaths and marriages; providing travel and citizenship documents; providing financial assistance to citizens abroad who wish to return to South Africa but have no means and determining and granting citizenship. The DHA also develops, manages and coordinates the departmental footprint in relation to opening new offices; deploying registration facilities at health facilities; and deploying mobile offices in rural areas where Home Affairs does not have permanent offices.

The programme also provides for all civic, immigration and refugee affairs functions in all the provinces. The transfers to Government Printing Works, Film and Publication Board and Electoral Commission also fall within this programme.

2.4.3. Programme 3: Immigration Services

The programme facilitates and regulates the secure movement of people through ports of entry into and out of South Africa ; determines the status of asylum seekers; and regulates refugee affairs.

The programme facilitates the entry and departure of persons into South Africa in line with the Immigration Act (2002). It records their movements on the Movement Control System (MCS) and controls the processing of applications for permanent and temporary residence permits, including work, study, business and other permits. Immigration Services also deals with the immigration matters in foreign countries and detects and deports illegal immigrants in terms of the Immigration Act (2002). In addition, this programme issues enabling documents to refugees. The Head Office is responsible for providing strategic leadership for refugee reception office operations.

2.4.4. Budget Expenditure Trends

The DHA received a total allocation of R6.56 billion in 2013/14. This was a 22.7% increase in nominal terms from its 2012/13 budget. When the nominal increase for 2013/14 was considered against the 5.6% projected inflation for the year, the real increase to the budget of DHA was 16% (R866 million). This increase was primarily due to the 72% growth in real allocation to the Electoral Commission amounting to R624.2 million (R707 million in nominal terms). This increase was to allow for the preparations for the 2014 Provincial and National elections. If the increase to the Electoral Commission is omitted, the increase to the overall budget of the DHA is 5.4% in real terms. In contrast, the overall government expenditure for 2013/14 was projected to grow by 8.9%.

Spending over the medium term will mainly focus on the following:

· Implementing the modernisation programme of the DHA.

· Developing and implementing a risk based approach to immigration and other policies in support of national priorities.

· Strengthening the effectiveness and efficiency of the refugee status determination and refugee management processes.

· Establishing the Border Management Agency (BMA), and

· Establishing and maintaining secure identity systems and issuing of enabling documents.

By spending as indicated above, the department will contribute to the achievement of the three departmental outcomes which in turn contribute to the three government outcomes that have implications to the work of the department.

DHA Budget per Programme change (Rm)

Programme	Budget		Nominal increase in 2013/14	Real increase in 2013/14	Nominal % change in 2013/14	Real % change in 2013/14
	2012/13	2013/14
Programme 1: Administration	R1 572.5	R1 871.6	R299.1	R199.8	19.02%	12.71%
Programme 2: Citizens Affairs	3 203.3	4 048.7	845.4	630.7	26.39%	19.69%
Programme 3: Immigration Affairs	577.2	647.5	70.3	36	12.18%	6.23%
Total	5 353.0	6 567.8	1 214.8	866.5	22.7%	16.19%

Programme 1: Administration accounted for the 28.5% of the DHA budget and it received 12.7% or R199.8million more for 2013/14. This was due to the significant increase in allocation for office accommodation (37%) and Transversal Information Technology (22%).

Programme 2: Citizen Affairs is the biggest programme of the DHA and accounted for 61.6% of the DHA budget. The programme allocation increases by 26% or R845.4million in nominal terms. This was due to the significant increase allocated to the EC. The budget allocation for the FPB showed an increase of 12% (R8.5 million in real terms) and the budget allocation for the GPW declined by 6% in real terms.

Without the EC budget allocation, the increase to Citizen Affairs was only 0.3% above

inflation in 2013/14. This must be considered against the fact that Citizen Affairs declined by 14% in real terms or R306.3 million from 2011/12 to 2012/13.

Programme 3: Immigration Affairs accounted for 10% of the budget received by DHA. The programme received a 6.23% increase in 2013/14 compared to a 4.2% decrease from 2011/12 to 2012/13. This equated to a R36 million real increases (R70 million in nominal terms). The increase was mostly due to the 22% (R43.4 million) real increase in the allocation to the Administration Services sub-programme. The largest sub-programme (Immigration Services) only received 0.4% real increase. The smallest two sub-programmes: Immigration Management and Asylum Seekers both received a real percentage cut of, of around 10%.

In terms of economic classification, ‘Compensation of Employees’ accounted for 41% of DHA spending. It received a 6.2% increase (only 0.8% above inflation). Despite the expansion of offices and staff shortages, the projected personnel numbers for the three year medium term, show no growth in the staff compliment of 10 716.

3. Entities of the Department Home Affairs

3.1. Government Printing Works (GPW)

The mandate of the GPW is to provide security printing to the South African government and it was converted to a full government component in terms of the Public Service Act (1999) in 2009, enabling it to start operating on sound business principles. The entity’s main strategic objective is to establish itself as the printer of choice in the SADC region by assisting its customers to effectively combat the complex problems of identity theft and document fraud.

It has three key strategic priorities that had been identified for the medium term:

· Develop the printing works as government component organisation that performs flexibly and within regulated parameters, as a sustainable ring fenced business entity.

· Optimise processes and facilities to increase operational effectiveness and improve customer service.

· Develop an efficient, effective, well trained and appropriately remunerated workforce.

The GPW has four branches with 18 strategic objectives as follows:

· Operations and Production.

- Strategic Objective 1: Functional and secure production facilities. The current building is not suitable for development of secure printing facility.

- Strategic Objective 2: Secure Production equipment.

- Strategic Objective 3: Production of security printed materials.

- Strategic Objective 4: Operational and control processes.

· Strategic Management.

- Strategic Objective 5: Coordination and distribution of government information. GPW also distributes government gazettes through its website.

- Strategic Objective 6: Availability of Information Computer Technology (ICT).

- Strategic Objective 7: Secure ICT environment.

- Strategic Objective 8: Continuous printing process improvement.

- Strategic Objective 9: ICT support services.

- Strategic Objective 10: Awareness of GPW. Although the Marketing branch had not been established, GPW wants to raise awareness of its products and services.

- Strategic Objective 11: Production diversification. To ensure the sustainability and growth of business.

- Strategic Objective 12: Develop and implement a marketing strategy. GPW wants to retain and grow the market already developed

- Strategic Objective 13: Security Risk Management system. GPW is in the process of developing a secure risk management plan.

- Strategic Objective 14: Provide independent and objective assurance and consulting services to management.

· Financial Services.

- Strategic Objective 15: Financial and supply chain management. The GPW aims to achieve an unqualified audit opinion.

· Human Resources.

- Strategic Objective 16: Ensure an adequate and trained workforce

- Strategic Objective 17: Special remuneration dispensation. GPW was losing critical skills to the private sector and it had requested a special dispensation from the Department of Public Service and Administration

- Strategic Objective 18: Develop and implement labour relations and employee wellness management policies, processes and programmes.

The GPW generates revenue mainly from printing materials such as examination papers, identity documents and passports as well as from non-security documents such as statistical reports, annual reports, brochures and standard office stationery. The GPW will not require funding from government from 2014/15 onwards. This is because the GPW will make sufficient profit to sustain itself.

The spending over the medium term will focus on the following:

· The asset replacement programme

· Developing the entity’s production facility. The facility will provide office accommodation.

The following were mentioned as key projects to be undertaken by the GPW:

· Installation and commission of new security printing division.

· The new ID Smart Card.

· Implementation of the E-Gazette.

· Create capacity to print passport visa pages in-house.

· Implementation of new ERP system

· Development of the new facility at Visagie Street .

· Polycarbonate card manufacturing plans.

3.2. Film and Publication Board (FPB)

The FPB derives its mandate from the Films and Publication Board Act (1996) with the Deputy Minister of Home Affairs as its executive authority. The Chairperson of the FPB council is the administrative head of the board. The board is mandated to regulate the creation, production, possession and distribution of films, games and certain publications. Among other provisions, the act prohibits the use of children in pornographic films or publications or on the internet. The board is also responsible for monitoring age restricted business premises for compliance with their licence and registration terms.

The FPB’s strategic goals over the medium term were to:

· Provide consumer advice that will enable adults to make informed viewing, reading and gaming choices for themselves and the children in their care.

· Protect children from exposure to disturbing and harmful materials and from premature exposure to adult experiences.

· Make punishable the use of children in or their exposure to, pornography.

The FPB main source of revenue is a transfer from the DHA and other sources of revenue include fees from classifying films and publications, registration fees for new distributors and annual renewals of distribution licences.

Over the medium term, spending will focus on expanding activities aimed at preventing child pornography on the internet. This will mean working closing with international organisations; researching human trafficking trends; classifying films and ensuring that internet users, especially children were warned of sites containing pornographic material; and monitoring distributors and traders for compliance.

3.3. Electoral Commission (EC)

The Electoral Commission is a Chapter 9 institution reporting to Parliament and it was established in terms of the Electoral Commission Act (1996).In terms of section 190(1) of the Constitution, the Electoral Commission manages the national, provincial, local elections. It ensures that the elections are free and fair and declares the election.

The EC had identified five strategic goals:

· Achieving the pre-eminence in the area of managing elections and referenda.

· Strengthening electoral democracy.

· Strengthening a cooperative relationship with political parties.

· Strengthening institutional excellence and professionalism at all levels of the organisation.

· Strengthening institutional governance.

Each strategic goal has a number of strategic objectives which are listed as follows as per:

Strategic Goal 1: Achieving the pre-eminence in the area of managing elections and referenda.

- Strategic Objective 1.1: Ensure accessibility and sustainability of voting facilities and processes by establishing and applying infrastructure to meet operational demands for each electoral event.

- Strategic Objective 1.2: Ensure efficient electoral processes by defining, specifying and procuring election materials and equipment for all electoral events.

- Strategic Objective 1.3: Increase voter participation in elections.

- Strategic Objective 1.4: Maximise electoral justice for all stakeholders in the electoral processes.

- Strategic Objective 1.5: Enhance the credibility of the voters’ roll.

- Strategic Objective 1.6: Improve compliance with legal prescripts.

- Strategic Objective 1.7: Continuously improve the legislative framework.

Strategic Goal 2: Strengthening electoral democracy.

- Strategic Objective 2.1: Encouraging citizen participation by providing continuous education.

- Strategic Objective 2.2: Providing strategic and thought leadership.

- Strategic Objective 2.3: Broadening research agenda and issuing publications.

- Strategic Objective 2.4: Increasing visibility through proactive consultation, effective communication and presence.

- Strategic Objective 2.5: Facilitating platforms for political dialogue.

- Strategic Objective 2.6: Cultivating an environment for free and fair elections.

- Strategic Objective 2.7: Constantly engaging the media

Strategic Goal 3: Strengthening a cooperative relationship with political parties.

- Strategic Objective 3.1: Conducting a predetermined number of liaison sessions, commensurate with the prevailing electoral phases, with political parties on national level, on provincial level and municipal level.

- Strategic Objective 3.2: Annually ensuring that the funding in respect of political parties from Parliament is distributed as defined in the relevant legislation.

Strategic Goal 4: Strengthening institutional excellence and professionalism at all levels of the organisation.

- Strategic Objective 4.1: Strengthening risk management.

- Strategic Objective 4.2: Maintaining sound industrial relations.

- Strategic Objective 4.3: Striving to comply with national climate change policies.

- Strategic Objective 4.4: Building institutional memory.

Strategic Goal 5: Strengthening institutional governance.

- Strategic Objective 5.1: Refining institutional governance arrangements (including the Commission’s structures and committees.

- Strategic Objective 5.2: Exercising oversight: monitoring, evaluation and support.

Spending focus for the EC over the medium term will be on the 2014 national and provincial elections and registration drives that will be conducted during the elections. The expenditure by the EC increased from R806 million in the 2012/13 financial year to R1.49 billion in 2013/14 and over the medium term. The expenditure is expected to increase to R1.6 billion by 2015/16 due to preparations for the 2014 national and provincial elections and 2015 local elections. The largest programme with the budget allocation of 60% of the EC budget is the Corporate Services which included human resources, staff development, Information Technology, financial and facilities management. The budget allocation for this programme increased by R336 million or 55% after inflation from 2012/13 to 2013/14 financial year. The second largest programme is the Electoral Operations, which comprised 20% of the total budget of the EC, increased from R149 million in 2012/13 financial year and the largest growth was in the Outreach programme which received an additional R164 million.

4. Recommendations

Based on the engagement between the Portfolio Committee on Affairs and Department of Home Affairs (DHA) as well its entities, the Committee recommend the following to the Minister of Home Affairs:

4.1. Consider ways of preventing the increase of spending on the deportation of illegal foreigners.

4.2. Ensure that the outstanding issues on the Foreign Affairs Trading Account are finalised.

4.3. Ensure that vacant funded posts in the Department of Home Affairs (DHA) are filled within four months as directed by the President during the State of the Nation Address (SONA).

4.4. Ensure that the DHA expedite the employment of persons with disability in order to work towards achieving the benchmark of 2% set by government.

4.5. Ensure that the Department’s Annual Performance Plan is better aligned with the National Development Plan (NDP).

4.6. Ensure that mobile offices are functional in order to assist in eradicating late registration of birth, especially in the rural areas.

4.7. Ensure that there is a better working relationship between the DHA and the Department of Health on online registration of births in health facilities.

4.8. Ensure that the DHA works with other government departments in the Justice, Crime Prevention and Security (JCPS) cluster in order to protect the coastline. The DHA should have more accurate numbers of undocumented migrants.

4.9. There should be considerable planning in the establishment of Border Management Agency (BMA) by the DHA as it has significant responsibilities.

4.10. Ensure that the DHA reduces the amount of time taken for processing Permanent and Temporary Residence Permits. The DHA should brief the Portfolio Committee on Home Affairs on any plans to privatise Visa/Permit applications.

4.11. The IT systems of the DHA were still not sufficiently integrated. The Information Technology (IT) Modernisation Project of the DHA should be prioritised.

4.12. Ensure that the DHA addresses the audit findings raised by the Auditor-General (AG) in the Annual Report for 2011/12.

4.13. Ensure that the DHA in future submits the Draft APP/Strategic Plan to the Portfolio Committee before it is tabled to Parliament.

4.14. Ensure that measures are taken to address court rulings on the closure of Refugee Reception Offices.

4.15. The Government Printing Works (GPW) should market itself better.

4.16. The GPW’s Annual Performance Plan needs to have outcomes based strategies and to consider the National Development Plan.

4.17. The respective roles of the Film and Publication Board (FPB) and other stakeholders involved in the fight against child pornography need to be formalised.

4.18. The Electoral Commission (EC) should consider having plans with regard to political intimidation when training staff during elections.

4.19. The EC should work towards strengthening the Political Liaison Committees (PLCs).

4.20. The EC should be innovative in attracting voters to come to voting stations during elections.

4.21. Voter education of the EC should be simpler and focus on what voters need to know.

4.22. The EC should address the audit findings raised by the Auditor-General during 2011/12.

5. Conclusion

The Portfolio Committee on Home Affairs would like to thank the Minister of Home Affairs, Deputy Minister of Home Affairs, and the Chief Executive of the Government Printing Works, the Council of the Film and Publication Board and the Commissioners of the Electoral Commission for showing good leadership over their respective areas of work.

The Committee accepts the Annual Performance Plan of the Department and its entities.

Report to be considered.