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Three YearAnnual Performance Plan
2016/17-2018/19
AbbreviationsAA - Accounting Authority
ADR - Alternative Dispute Resolution
CCMR - Consumer Credit Market Report
CEO - Chief Executive O�cer
CFO - Chief Financial O�cer
COTII - Council of Trade and Industry Institutions
DCEO - Deputy Chief Executive O�cer
dti - Department of Trade & Industry
DPSA - Department of Public Service Administration
EXCO - Executive Committee
FIN - Finance
HR - Human Resources
ICT - Information Communication Technology
MICT SETA - Media Information and Communication Technologies Sector Education
and Training Authority
NCA - National Credit Act
NCAA - National Credit Amendment Act
NCR - National Credit Regulator
NCT - National Consumer Tribunal
PDA - Payment Distribution Agents
NDP - National Development Plan
PFMA - Public Finance Management Act
SADC - Southern African Development Community
SCM - Supply Chain Management
SDIP - Service Delivery Improvement Plan
SLA - Service Level Agreement
W&RSETA - Wholesale and Retail Sector Education and Training Authority
De�nitions used to measure performanceE�ective - Successful in producing a desired or intended result
Enhance - Improve the quality of performance
Support - To give assistance
Facilitate - To make an action or process easier
Table of Contents1. NCR Organisational structure 3
2. O�cial sign-o� 4
3. Foreword by the Minister 5
4. Overview by the Accounting Authority 6
PART A: Strategic Overview 9
5. Vision 9
6. Mission 9
7. Values 9
8. Legislative and other Mandates including Constitutional Mandates 9
9. Strategic Outcome Oriented Goals 10
10. Strategic objectives 10
11. The dti key strategic focus areas 10
12. Recent Court Rulings 10
13. Situational analysis 12
State of the Credit Market 12
13.1 Performance Delivery Environment (external) 12
a) Uncertainty in the regulatory framework 12
b) Increasing complexity and sophistication 12
c) Stakeholder management 12
d) Challenges faced by the NCR 13
13.2 Organisational Delivery Environment (internal) 13
a) Processes, system and structure renewal 13
b) Human Capital 13
c) Knowledge intensity 13
13. 3 Strategic Alignment to the dti 13
14. Description of the Planning Process 14
15. Financial Plan 15
(i) Projections of revenue, expenditure and borrowings 15
(ii) Asset and Liability Management 15
(iii) Cash �ow projections 16
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(iv) Capital expenditure projects 16
(v) Infrastructure plans 16
(vi) Dividend policies 16
PART B: Programme Performance 17
16. Programme 1: 17
17. Programme 2: 20
18. Programme 3: 23
19. Programme 4: 27
20. Programme 5: 29
PART C: Links to other plans 34
21. Asset Management Plan 34
22. Information Technology Plan 34
23. Risk Management and Fraud Prevention Plan 34
23.1 Risk Management Process 34
23.2 Risk Strategy (Risk Register) 36
24. Any subsidiary of statutory body reporting to the entity 38
25. Service delivery improvement Plan 38
Annexure: Indicator Pro�les 39
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1. NCR Organisational structure 2016/2017
Manager:Compliance
Manager:Investigations &
Enforcement
Manager:Registrations
Manager:Complaints
Manager: DebtCounselling
Manager:Education &
Communication
Manager:Statistics &
Research
CEO & AA
ARMC
DeputyCEO
CompanySecretaryCFO
Manager: Human
ResourcesCOO (Vacant)
3
OutsourcedInternal Audit
4
2. O�cial sign-o�It is hereby certi�ed that this Annual Performance Plan:
Was developed by the management of the National Credit Regulator under the guidance of Ms Motshegare, who is the CEO and
Accounting Authority.
Takes into account all relevant policies, legislation and other mandates for which the National Credit Regulator is responsible.
Accurately re�ects the strategic outcome oriented goals and objectives which the National Credit Regulator will endeavour to
achieve over the period 2016/2017 – 2018/2019.
Signature:
Ms. Ayanda Mafuleka
Chief Financial O�cer
Signature:
Mr. Obed Tongoane
Deputy Chief Executive O�cer
Recommended for approval by
Signature:
Ms. Nomsa Motshegare
Chief Executive O�cer and Accounting Authority
5
3. Foreword by the MinisterThe National Credit Regulator (NCR) is established in terms of the National Credit Act No 34 of 2005 (the Act). It commenced operations in 2006. The Act was amended in 2014 (Act No.19 of 2014) and the Regulations pertaining to the Act as amended became e�ective in March 2015, except for the A�ordability Assessment Regulations which became enforceable in September 2015.
As a result of the above Regulations, the NCR is expected to focus on a number of key policy areas. These include monitoring compliance with: registration by new entrants, that is, small credit providers, payment distribution agents and alternative dispute resolution agents; Regulations relating to the collection and sale of prescribed debt; and the implementation of the A�ordability Assessment Regulations. In instances of contraventions, relevant enforcement action must be taken.
An additional key policy area the NCR must focus on, is to monitor the e�ect of the cost of credit and credit life insurance on consumers.
In the past year, the NCR embarked on various campaigns in an e�ort to raise consumer awareness and educate consumers in terms of their rights and obligations in terms of the Act as amended. This must continue, especially in predatory and deceptive advertisements where consumers are lured to take on credit with high interest rates. Consumers must also be made aware that they need to be honest in disclosing their �nancial obligations in full to credit providers for proper a�ordability assessments to be conducted.
The NCR’s achievements of its targets in the past years, and especially the last �nancial year are praiseworthy. In the 2014/15 �nancial year, the entity obtained an unquali�ed audit opinion with no matters of emphasis (clean audit).
For the three quarters up to 31 December 2015, the NCR achieved about 85% of its targets. Promoting public awareness on consumer credit matters with the aim of reaching across a broad range of consumers with varying needs, especially the vulnerable sectors of our communities is high on NCR’s agenda. Outreach programmes in the form of “Imbizos” were conducted in rural areas in the Free State, KwaZulu-Natal and Limpopo Provinces. The target audience were pensioners and self-employed people. In their proactive investigations, the NCR has mounted pressure on retailers to root out undesirable credit practices by selling unemployment insurance to consumers and levying unlawful fees that add to the indebtedness of consumers (for example, club fees).
A number of these matters and others which relate to various contraventions of the Act have been referred to the National Consumer Tribunal.
I am optimistic about the positive role that the NCR will continue to play in e�ectively regulating the consumer credit industry and protecting consumers. NCR is well on course to improve its performance with appropriate strategies and e�ective implementation of the Act as amended.
I am therefore pleased to release the NCR’s 3-year Annual Performance Plan for 2016-2019 and the 5-year Strategic Plan for 2016-2021 which set out in detail how objectives will be met with the continued support of the dti.
Dr Rob Davies, MPMinister of Trade and Industry
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4. Overview by the Accounting AuthorityAs we recognise the challenging current economic climate in
the country, the National Credit Regulator (NCR) has made
tremendous inroads in making a di�erence in the lives of
South African citizens, especially the vulnerable sector of
society by e�ectively regulating the consumer credit industry.
The priorities of the NCR are aligned with the Key Policy Areas
of the Department of Trade and Industry (dti). These focus
areas re�ect the NCR’s vision of promoting a South African
consumer credit market which is fair, transparent, accessible
and contributing to South Africa’s socio-economic
development.
The NCR operates under the ambit of the National Credit Act
No 34 of 2005 (the Act). The Act was amended in 2014 (Act No.
19 of 2014) and most of the Regulations pertaining to the Act
as amended became e�ective in March 2015, with the
exception of the A�ordability Assessment Regulations which
came into force in September 2015.
A high level situational analysis conducted identi�ed trends in
the developments that are likely to in�uence the consumer
credit industry and impact the NCR over a period of time. The
factors impacting on the regulatory environment include the
following:
The state of the credit market: - The following were some of the
most signi�cant trends in terms of credit granted for the
quarter ended September 2015: the value of new mortgage
loans granted increased by R2.50 billion (6.77%) year-on-year;
secured credit, which is dominated by vehicle �nance,
increased by R2.80 billion (7.68%) year-on-year; and unsecured
credit increased by R2.42 billion (13.28%) year-on year.
The total outstanding consumer credit balances (gross
debtor’s book) as at September 2015 was R1.63 trillion, an
increase of 4.09% year-on-year.
About 23.45 million credit-active consumers were recorded on
the credit bureau records for the quarter ended September
2015. This is an increase of 4.2% when compared to the 22.50
million in September 2014. Consumers classi�ed in good
standing increased by 1.08 million year-on-year, to 13.53
million consumers in September 2015. As a percentage of the
total number of credit-active consumers at 57.7%, this re�ects
an increase of 2.4% year-on-year.
The number of consumers with impaired records has
decreased by 138 000 year-on-year, from 10.05 million in
September 2014, to 9.91 million in September 2015. The
number of accounts increased from 81.18 million in
September 2014 to 80.60 million for the quarter ended
September 2015. The number of impaired accounts decreased
from 21.64 million to 20.24 million when compared to
September 2014, a decrease of 1.40 million year-on-year.
Stakeholder management-: the NCR established a Credit
Industry Forum to address challenges relating to the
implementation of the Act. The forum meets quarterly and is
chaired by the NCR. Representation on the forum includes the
Banking Association of South Africa, the Micro Finance South
Africa, Debt Counselling Associations, Payment Distribution
Association of South Africa, Credit Bureau Association and
Consumer representatives. Regular meetings are also held
with large credit providers individually to discuss regulatory
issues.
The NCR also engages on a regular basis with other local
regulators such as the South African Reserve Bank and the
Financial Services Board to cooperate on regulatory matters
and to share information in respect of investigations relating to
entities that are regulated by these regulators.
The NCR participates in quarterly regulatory cluster meetings
of the Council of Trade and Industry Institutions (COTII) which
facilitate sharing of information and pulling resources to work
together as regulators. These meetings are chaired by the dti.
The members of the COTII are regulators and consumer
tribunals that report to the dti.
We continue to host regulators from the Southern African
Development Community (SADC) region to share information
on the work of the NCR. The countries from the region that
have visited the NCR to date include Swaziland, Namibia,
Botswana, Uganda and Tanzania.
Consumer Education:- In terms of consumer education and
communication, the main activities that stand out include the
involvement of the NCR in a project initiated by the
Department of Public Service and Administration (DPSA) to
develop and implement a debt relief programme to relieve
government employees of high indebtedness levels. This
relationship is to be formalised in a form of a Memorandum of
Understanding.
The NCR also conducted the “Know your credit status”
campaigns jointly with credit bureaus at shopping centres,
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o�ces of the dti and the South African Revenue Services.
The NCR working jointly with local Tribal Authorities in rural
areas of the Free State, Limpopo, and KwaZulu-Natal Provinces,
conducted outreach programmes (“Imbizos”) aimed at mainly
pensioners and self employed people to create awareness
relating to undesirable practices of credit providers, especially
retailers.
Investigations:- During its investigations, the NCR discovered
that some of the retailers sold retrenchment and occupational
disability covers to pensioners and consumers receiving
government social grants such as old age, disability, foster care
and child support grants; and charged most of these
consumers a club fee which is not permitted in terms of the
Act.
The sale of retrenchment and occupational disability covers to
pensioners and consumers receiving government social grants
is unreasonable and imposes an unreasonable cost to such
consumers because they cannot claim bene�ts under these
covers.
The NCR also found that in some instances consumers
receiving disability grants from the government on account of
their permanent disability were sold occupational disability
cover at a time when they were already certi�ed permanently
disabled.
Entities found to have engaged in the abovementioned
practices were referred to the National Consumer Tribunal
(NCT) for appropriate sanctions.
Nineteen (19) matters involving credit providers (retailers,
banks, and other credit providers) were referred to the NCT
between April 2015 and September 2015. Contraventions
uncovered include over-charging of credit life insurance,
reckless lending, obtaining judgments in incorrect
jurisdictions, overcharging of fees, misleading advertisements
and others.
The enforcement of the Act is one of the key functions of the
NCR. In carrying out enforcement, the NCR conducts reactive
and proactive investigations. Reactive investigations are
informed by complaints from consumers, trends identi�ed in
the media, referrals from other institutions and on-site
compliance visits while proactive investigations target speci�c
areas following extensive information gathering.
Clean Audit Opinion: - As a result of the prudent �nancial
management and corporate governance practiced, the NCR
obtained an unquali�ed Audit Opinion without matters of
emphasis (Clean Audit) for the �nancial year 2014/15. There
were no �ndings on compliance, supply chain management
and performance information.
We recognise the �nancial challenges encountered to
implement the planned strategic activities. To achieve the
long-term goals, we will need to harness the experience and
expertise accumulated over the years.
The NCR has continuously been focusing on measures to cut
operational costs to deal with funding challenges. For
example, some of the work that was outsourced has been
internalised by providing extensive training to sta�. At the
same time, measures to supplement income have also been
identi�ed. These include proposals to increase registration fees
which have been submitted to the dti. The fee regulations have
been published by the dti.
The NCR is committed to good governance practices. The
responsibilities of the Accounting Authority vest in the Chief
Executive O�cer. An Audit and Risk Management Committee
(ARMC) is constituted in terms of the PFMA and Treasury
Regulations. The Internal Audit function is outsourced and
reports to the ARMC. The ARMC meets at least four times a
year.
The actions of the NCR have been e�ective in dealing with the
challenges as we see them today, but more work needs to be
done and �exibility coupled with creativity is going to become
crucial. The organisation has been working smartly to achieve
most of the objectives it set out to meet. By the end of
September 2015, about 85% of the targets had been either
achieved or exceeded.
For the 2016/17 �nancial year and as a result of the
Amendments and Regulations, key policy areas that the NCR
would focus on are the following: Monitoring compliance with
registration requirements - registration by new entrants, that
is, small credit providers, payment distribution agents, and
alternative dispute resolution agents; Regulations relating to
the collection and sale of prescribed debt; and
Implementation of the A�ordability Assessment Regulations.
In instances of contraventions, relevant enforcement action
will be taken.
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The NCR will also focus on monitoring the e�ect of the cost of
credit and credit life insurance on consumers.
We have aligned the key performance areas with the strategic
objectives and core themes of the dti. The vision and mission
are articulated through strategic goals. Measurable
performance indicators as well as an analysis of external and
internal factors that could a�ect the ability to achieve our goals
are indicated. Strategic risks, which we could be exposed to, as
well as possible mitigating controls, are also identi�ed. The
strategic thrusts driving the plan include: - To promote
responsible credit granting, To protect consumers from abuse
and unfair practices in the consumer credit market and
address over indebtedness; To enhance the quality and
accuracy of credit bureau information; To monitor and improve
NCR’s operational e�ectiveness; and ensure e�ective
implementation of the National Credit Act as amended.
I would like to warmly thank the NCR Executive Team,
Management and Personnel for their contribution in building a
sustainable consumer credit market and the development of
South Africa. The important lessons captured each year
prepare us to take on new challenges in the years to come. The
organisational performance ultimately depends on the
continued dedication and hard work of our employees, to
whom I personally express appreciation for their enthusiasm
while encouraging sustained service with integrity, dedication
and professionalism.
Furthermore, it is important to continue collaboration with our
key stakeholders, and in particular the dti, in spearheading
socio-economic development. As we proceed on this journey,
the unwavering and continued support of the Honourable
Minister, the dti and Parliament will be of importance to assist
us to build on our strength through our ability to adapt and
respond quickly to changes and developing trends in the
consumer credit market.
The NCR will strive to improve its e�ectiveness in the
implementation of the Act and protection of consumers. I am
grateful to the Honourable Members of the Portfolio
Committee on Trade & Industry, Honourable Members of the
Select Committee on Trade and International Relations, the
Honourable Minister of Trade and Industry, Dr Rob Davies,
Director-General, Mr Lionel October, the Group Chief
Operations O�cer, Ms Jodi Scholtz, Deputy Director-General,
Ms Zodwa Ntuli and the Acting Deputy Director-General, Mr
MacDonald Netshitenzhe for their continued support and
guidance in terms of regulating the consumer credit industry.
I would also like to extend my sincere appreciation to the
Members of the Audit & Risk Management Committee for their
support and guidance.
Ms Nomsa Motshegare
Chief Executive O�cer and Accounting Authority
PART A: Strategic Overview
5. Vision
The vision of the NCR is:
To promote a South African consumer credit market that is fair, transparent, accessible and dynamic.
6. Mission
The mission of the NCR is:
To support the social and economic advancement of South Africa, by:– • regulating for a fair and non-discriminatory market for access to consumer credit; and • promoting responsible credit granting, use and effective redress.
7. Values
The values of the NCR are:
Service Excellence We strive for service excellence that exceeds the expectations of all stakeholders.
Integrity We are committed to honesty and integrity without compromise.
Empowerment We strive for empowerment in the consumer credit market and we are also committed to employee empowerment.
Good Corporate Governance We strive to be a model of good corporate governance at all times.
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8. Legislative and other mandates including constitutional mandates
The legislative mandate of the NCR is as follows:
• To promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit improved standards for consumer information; • To prohibit certain unfair credit and credit market practices; • To promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; • To provide for debt re-organisation in cases of over-indebtedness; • To regulate credit information; and • To promote a consistent enforcement framework relating to consumer credit.
9. Strategic Outcome Orientated Goals
The NCR has six strategic outcome orientated goals. These are aligned to its �ve strategic objectives.
10. Strategic Objectives
The strategic objectives the NCR pursues are as follows:
1. To promote responsible credit granting. 2. To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness. 3. To enhance the quality and accuracy of credit bureau information. 4. To monitor and improve NCR’s operational e�ectiveness. 5. To ensure e�ective implementation of the National Credit Amendment Act (NCAA).
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11. The dti key strategic focus areas
• To facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth;• To create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner; and • To promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures e�ective and e�cient service delivery.
12. Recent Court Rulings
A brief summary of recent court cases and rulings are provided below:
Van Zyl vs NCR KwaZulu-Natal High Court: Case AR620/13.
Section 148
Bridge vs NCR North Gauteng High CourtCase No: 87768/14
Sections 55 and 57
The Applicant has applied to the High Court in order to declare sections 55 and 57 of the NCA unconstitutional. The NCR has �led its opposing papers. The matter was withdrawn.
Blue Chip vsCedric DeanRyneveldt
Supreme Court of AppealCase No: A233/14
Sections 129 and 130
The appeal was heard on 2 March 2015. The court had to rule on whether or not s129 is part of the cause of action. The High Court ruled in the a�rmitive. Blue Chip sought leave to appeal to the Supreme Court of Appeals. The set down date is being awaited.
The Appellant appealed against the decision by the Tribunal in terms of which he was �ned a R100 000 for his failure to conduct his debt counselling business in line with the provisions of the Act. The Appellant has since withdrawn the appeal resulting in the Tribunal order becoming e�ective. The Appellant has been requested to pay the �ne and NCR’s legal costs. The NCR needs to make a determination on whether it is viable to collect as the DC does not have assets.
Name Court & Case Noor Reference No
NCA Status
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Name Court & Case Noor Reference No
NCA Status
M & S Funeralsvs NCR andothers
North Gauteng High CourtCase No: 83374/14
N/A The Applicant has applied to the High court to declare the search warrant that was used by the NCR to search and seize ID Books and cash that was kept by the Applicant in the course of its business as a credit provider as unlawful. The application was brought on an urgent basis and the High Court dismissed the application. The Applicant has since �led papers to bring the application on a normal basis. The matter was heard in the North Gauteng High Court on 26 October 2015 and the application was dismissed. The matter has been referred to the NCT for the de-registration of the registrant. The date of hearing is being awaited.
North Gauteng High CourtCase No: A440/14NCT Case No: NCT9152/2013/140(1)
NCR vs Capitec Section 90; Section 92(2) read with Regulation 29(1) and Form 20.1; Regulation 42(1)(b); Section 81(2)
The NCR has appealed to the High Court against the whole of the judgment and order of the NCT. The appeal will be heard in March 2016.
North Gauteng High CourtCase No: 75195/2015
De Noon vs NCR
N/A De Noon intends appealing the decision to cancel its registration as a credit provider. The NCR has �led an application to oppose the notice to appeal. The set down date is being awaited.
North Gauteng High Court Case No: 82869/2014
Bayport vs Minister of Justice and NCR
Section 90(2)(k)(vi)(bb)
Bayport brought an application to declare consent to foreign jurisdiction as legitimate. The NCR has �led its opposing papers. The case has been set down for 03 May 2016.
Western Cape High Court
NCR vs Bank on Assets
Section 90 NCR has made an application to declare the Bank on Asset’s business model unlawful. The set down date is being awaited. The entity is under liquidation.
Regional Court for Regional Division of Gauteng: Randburg
Koshava O�ce Solutions CC vs NCR
N/A Koshava (a service provider) is suing the NCR for outstanding rental fees and the return of leased equipment. The NCR opposes the matter which is being heard in February 2016.
North Gauteng High CourtCase No: 73338/15
Developmentn-omics vs NCR
N/A Developmentnomics (a service provider) is suing the NCR for non-payment of services allegedly rendered. The NCR has �led a notice of intention to defend and refuses to pay because Developmentnomics failed to deliver in terms of the SLA. The matter is at the pleading stage.
13. Situational Analysis
A high-level assessment was undertaken to identify the most signi�cant developments in the external and internal environment that are likely to in�uence or impact the NCR over the next several years. First, a brief synopsis of the state of the credit market is provided and thereafter, the analysis of the internal and external factors impacting on the NCR.
State of the Credit Market
The total value of credit granted for the twelve months ending September 2015 amounted to R461.42 billion compared to R441.64 billion for the same period in 2014. The value of the outstanding debtors’ book increased by R64.19 billion (4.09%) for the quarter ended September 2015, when compared to the quarter ended September 2014. The value of the debtors book at the end of September 2015 was R1.63 trillion consisting of 41.29 million accounts. For the quarter ended September 2015, the total Rand value of new credit granted was R123.93 billion, with mortgages comprising R39.39 billion (31.78%). Unsecured Credit increased by 13.28% from R18.23 billion for the quarter ended September 2014 to R20.66 billion for the quarter ended September 2015.
Applications for registration of credit providers have stabilised. A total of 4 885 credit providers with 49 941 branches, 14 Credit Bureaus and 2314 debt counsellors are now registered with the NCR.
As at September 2015, about 740 500 consumers applied to be under debt review and an estimated 408 976 cases remain under “active” debt review. The total PDA distributions to credit providers from April 2015 to December 2015 was R4.9 billion. These are funds collected by PDAs from consumers under debt review.
13.1 Performance Delivery Environment (external)
The following external developments were identi�ed as the key trends or issues that are likely to a�ect the work of the NCR:
a) Uncertainty in the regulatory framework
Regulatory uncertainty creates inconsistent application of the legislation resulting in undesirable outcomes that have a negative impact on the credit market. It also leads to interpretation problems which impede regulatory certainty.
Decisions of the courts and National Consumer Tribunal have also created uncertainty in the regulatory framework when interpreting the National Credit Act. Some of the decisions for example are inconsistent with the overall purpose of the legislation.
The NCR has worked closely with the dti to close the gaps that exist currently in the legislation through the National Credit Amendment Act No.19 of 2014 and its regulations such as, A�ordability Assessment, Credit Life Insurance and Interest Rate Caps.
In addition, the NCR is empowered to issue guidelines to the industry to provide guidance on the interpretation and application of the Act as amended.
b) Increasing complexity and sophistication
The evolution of the credit market has come with innovation by the industry. This has increased the levels of complexity and sophistication in the market.
The emergence of on-line and social lending in South Africa has brought new regulatory challenges for the NCR. As a regulator, the NCR must be adept to the new challenges to ensure consumer protection.
The NCR is also closely monitoring the introduction of the new credit products and the advertising methods of credit providers in order to curb the luring of consumers into debt traps. This in turn requires improved product knowledge and understanding by the NCR to be able to monitor their compliance with legislation e�ectively.
c) Stakeholder management
The approach of the NCR towards stakeholder management is to facilitate open discussion and engagement with the industry and other stakeholders. E�orts are being made to achieve this objective while avoiding regulatory capture by the industry.
The NCR has established the Credit Industry Forum which serves as a platform for the NCR and industry to engage and reach agreement on industry issues. The forum represents all industry players and consumers. It plays an important role in resolving operational problems on the implementation of the legislation.
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The NCR is a member of the African Consumer Protection Dialogue which is facilitated by the Federal Trade Commission of the United States. This forum brings together regulators from all over the African continent to discuss consumer protection issues and share information. A formal structure for information sharing and collaboration is being explored in this forum.
The NCR also holds regular meetings with industry associations, registrants and magistrates. On-going meetings are also held with local and foreign investors as well as local �nancial institutions and other regulators including the Reserve Bank of South Africa.
The NCR has also established networks with other regulators in the SADC region, North America and the United Kingdom. More relationships will be established with other regulators across the globe.
d) Challenges faced by the NCR
The main challenge of the NCR is funding. The NCR requires additional funding for new premises to accommodate its growing sta� complement and increase sta� capacity. In addition, funding is required for compliance monitoring, consumer education, conducting workshops and enforcement.
The NCR continues to �nd creative ways to augment its budget in order to be able to execute its legislative mandate. These include, but not limited to, requesting the dti to issue regulations increasing registration fees.
13.2 Organisational Delivery Environment (internal)
The following internal developments were identi�ed as the key issues that are likely to a�ect the work of the NCR:
a) Processes, system and structure renewal
A new human resource management system and a performance management system have been introduced.
b) Human Capital
The NCR is focusing on sta� issues and ensures that sta� morale remains high.
There is a learneship programme in which �fteen (15) graduates were recruited and trained with the hope of providing additional capacity to the NCR. This is a joint project between the NCR, the WRSETA and MICSETA. The NCR has been running the learnership programme since 2011.
c) Knowledge intensity
The NCR is expected to provide guidance to stakeholders on the developments and trends in the credit market. This is achieved through measures such as issuing public notices, capacity building workshops, media statements, radio and TV interviews, outreach programmes (Imbizos) and others. In addition, the NCR also publishes statistics on a quarterly basis on the level and nature of consumer indebtedness.
13.3 Strategic Alignment to the dti
In addition to the external and internal environmental trends and issues, the need to ensure strategic alignment to priorities of government was taken into account in formulating the strategic priorities of the NCR. Government has committed itself to achieving twelve (12) outcomes.
The dti, as the NCR’s line ministry, plays a pivotal role in ensuring the achievement of Outcome 4 – Decent Employment through Inclusive Growth. A stable and e�cient �nancial sector, of which the consumer credit market is a critical component, is vital for ensuring inclusive growth and employment creation. Thus, the activities of the NCR are most closely associated with contributing to Outcome 4.
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The alignment between the outcomes that the NCR seeks to achieve, and the strategic objectives of the dti, is set out below
The dti strategic objectives and NCR outcomes:
Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth:-
• To promote responsible credit granting.• To enhance the quality and accuracy of credit bureau information.
• Reduced levels of over-indebtedness.• Affordable levels of credit promoted.• Improved consumer credit information.
Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner:-
• To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.• To ensure effective implementation of the National Credit Amendment Act (NCAA).
• Decreased levels of reckless lending practices.• Improved compliance with regulations and consumer protection.• Improved and effective regulation.
Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures e�ective and e�cient service delivery:-
• To monitor and improve NCR’s operational e�ectiveness.
E�cient service delivery.
14. Description of the Planning Process
The �rst stage begins with the Executive Committee initiating the planning process with the aim of creating the organisational strategic direction. Workshops are then held between executive members and the management team to develop the departmen-tal operational objectives. Management engages with their respective team members to develop operational objectives which are in line with the business plan of the organisation. Upon approval of the strategic and operational objectives, all employees including executive management conclude performance contracts with their respective team members.
dti Objectives NCR Objectives NCR Outcomes
15. Financial Plan
(ii) Asset and Liability Management
In terms of section 51(1)(c) of the PFMA, the Accounting Authority is responsible for the management, including the safeguarding, of the assets and the management of the revenue, expenditure and liabilities of the public entity. Within the NCR, the Asset Management Policy provides for the acquisition of assets when the need arises. Procurement processes are in line with legislative requirements as well as the NCR’s supply chain management policy. In addition, assets are e�ectively maintained and when required, disposed of in line with the requirements of the PFMA.
Financial planning and discipline are a key success factor for the NCR. With the limited �nancial resources, and the need to regulate the credit industry and enforce the NCA, it is imperative for the NCR to optimise the available funding.
This section provides an overview of the projected revenue, expenditure and cash �ow requirements over the three year period. In addition, the NCR’s assets and management strategy is provided, as well as the capital expenditure projections.
(i) Projections of revenue, expenditure, borrowings and capex
The following table provides a summary of the NCR’s projected �nancial plan for the three year period:
The NCR’s projected capital expenditure programme for the next three years focuses on the computer equipment and IT systems upgrade. The capex programme is outlined below:
Operational expenditure
Personnel costs
Administration costs
Professional/Programme costs
Total operational expenditure
Capital expenditure
Fixed assets
ICT operational system
Total capital expenditure
TOTAL EXPENDITURE
Income
Fees from registrants
Transfers from DTI
Interest
Other income
Additional Funding from DTI
TOTAL INCOME
78,988,539
18,745,941
23,545,823
121,280,303
3,903,303
2,000,000
5,903,303
127,183,606
55,106,606
69,577,000
1,500,000
1,000,000
-
127,183,606
82,924,000
18,521,113
23,752,198
125,197,310
4,020,402
1,500,000
5,520,402
130,717,712
55,161,712
73,056,000
1,500,000
1,000,000
-
130,717,712
87,070,200
18,876,746
24,437,404
130,384,350
4,141,014
1,500,000
5,641,014
136,025,364
56,816,564
76,708,800
1,500,000
1,000,000
-
136,025,364
Year 2016-2017 Year 2017-2018 Year 2018-2019
O�ce Equipment
Computer Equipment
Furniture
Software/licences
ICT operating system
Total
275,282
908,803
207,018
2,512,200
2,000,000
5,903,303
291,799
846,232
219,439
2,662,932
1,500,000
5,520,402
300,553
871,618
226,022
2,742,820
1,500,000
5,641,014
Year 2016-2017 Year 2017-2018 Year 2018-2019
15
275,282
908,803
207,018
2,512,200
2,000,000
5,903,303
291,799
846,232
219,439
2,662,932
1,500,000
5,520,402
300,553
871,618
226,022
2,742,820
1,500,000
5,641,014
Year 2016-2017 Year 2017-2018 Year 2018-2019
16
O�ce Equipment
Computer Equipment
Furniture
Software/licences
ICT operating system
Total
(iii) Cash �ow projections
Cash �ow from operating activities
Cash receipts from applicants and registered entities
Cash paid to suppliers
Cash paid to employees
Cash absorbed by operations before transfers received
Transfer received
Cash �ow absorbed by operations
Finance income
Net cash in�ows from operations activities
Cash �ows from investing activities
Additions to property, plan and equipment
New ICT system Developments, etc
Net cash out�ows from investing activities
Cash �ows from �nancing activities
Net cash in�ows from �nancing activities
Net decrease/increase in cash and cash equivalent
Year 2016-2017 Year 2017-2018 Year 2018-2019Budget
56,106,606
( 42,291,765 )
( 78,988,539 )
( 65,173,697 )
69,577,000
4,403,303
1,500,000
5,903,303
( 3,903,303 )
( 2,000,000 )
( 5,903,303 )
-
-
Budget
56,161,712
( 42,273,310 )
( 82,924,000 )
( 69,035,599 )
73,056,000
4,020,401
1,500,000
5,520,401
( 4,020,402 )
( 1,500,000 )
( 5,520,402 )
-
-
Budget
57,816,564
( 43,314,150 )
( 87,070,200)
( 72,567,786 )
76,708,800
4,141,014
1,500,000
5,641,014
( 4,141,014 )
( 1,500,000 )
( 5,641,014 )
-
-
(iv) Capital expenditure programmes
(v) Infrastructure Plans
The NCR does not have planned infrastructure projects and therefore does not have an infrastructure plan.
(vi) Dividend policies
The NCR is a schedule 3A public entity receiving a transfer payment from the dti. Hence the NCR does not declare dividends.
The NCR’s projected capital expenditure programme for the next three years focuses on the computer equipment and IT systems upgrade. The capex programme is outlined below:
17
Part
B: P
rogr
amm
e Pe
rfor
man
ce
16. P
rogr
amm
e 1:
To
prom
ote
resp
onsi
ble
cred
it g
rant
ing.
16
.1 P
urpo
se o
f the
pro
gram
me
Th
e pu
rpos
e of
this
pro
gram
me
is to
redu
ce le
vels
of c
onsu
mer
ove
r-in
debt
edne
ss b
y:
(
a) E
duca
ting
cred
it pr
ovid
ers
and
mon
itorin
g th
eir c
ompl
ianc
e w
ith th
e re
gula
tions
; and
(
b) E
nfor
cing
com
plia
nce
with
the
regu
latio
ns.
16
.2 D
escr
iptio
n of
the
prog
ram
me
Wor
ksho
ps a
nd c
ompl
ianc
e m
onito
ring
visi
ts w
ill b
e co
nduc
ted
in o
rder
to a
ssis
t cre
dit p
rovi
ders
to c
ompl
y w
ith a
�ord
abili
ty a
sses
smen
t reg
ulat
ions
and
cos
t of c
redi
t.
16
.3 P
erfo
rman
ce in
dica
tors
and
per
form
ance
targ
ets p
er p
rogr
amm
e.
Num
ber o
f
prov
ince
s vi
site
d to
mon
itor c
ompl
ianc
e
and
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
App
rove
d
rese
arch
by
Boar
d.
Repo
rts o
n
Impl
emen
tatio
n
of re
com
men
datio
ns.
1 w
orks
hop
cond
ucte
d on
a�or
dabi
lity
asse
ssm
ent
regu
latio
ns.
*7 p
rovi
nces
visi
ted
to m
onito
r
cred
it pr
ovid
er
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers
whe
re n
eces
sary
.
9 pr
ovin
ces
visi
ted
to m
onito
r cre
dit
prov
ider
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers.
9 pr
ovin
ces
visi
ted
to
mon
itor c
redi
t
prov
ider
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers
whe
re n
eces
sary
.
9 pr
ovin
ces
visi
ted
to
mon
itor c
redi
t
prov
ider
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers
whe
re n
eces
sary
.
Redu
ced
leve
ls o
f
over
-inde
bted
ness
.
Goa
l/O
utco
me
Impr
ove
com
plia
nce
with
a�or
dabi
lity
asse
ssm
ent
regu
latio
ns.
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
2012
/13
18
--
--
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
R25m
R17.
2mR5
.6m
R6.7
mR6
.8m
R7.5
m
*7
wor
ksho
ps
cond
ucte
d on
a�or
dabi
lity
asse
ssm
ent
regu
latio
ns
R6.5
mN
umbe
r of
inve
stig
atio
ns
cond
ucte
d to
enfo
rce
regu
latio
ns
and
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
Num
ber o
f
Wor
ksho
ps
cond
ucte
d on
a�or
dabi
lity
asse
ssm
ent
regu
latio
ns a
nd
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y
--
-
Dra
ft B
usin
ess
plan
app
rove
d by
Boar
d.
Fina
l fun
ctio
nal
spec
i�ca
tion
docu
men
t of t
he
NRC
A d
atab
ase
man
agem
ent
syst
em p
rodu
ced.
Esta
blis
hmen
t of
the
NCR
A s
teer
ing
com
mitt
ee.
-D
evel
op p
ropo
sal
on a
�ord
abili
ty
asse
ssm
ent
guid
elin
es.
---
--
-
Stud
y co
nduc
ted
to re
view
the
curr
ent l
evel
s of
the
cost
of c
redi
t
and
mak
e
reco
mm
enda
tions
to th
e dt
i.
R9.5
m
*15
inve
stig
atio
ns
cond
ucte
d an
d
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R10.
4m
Cond
uct 4
0
inve
stig
atio
ns a
nd
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R11m
Cond
uct 5
0
inve
stig
atio
ns a
nd
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
Cond
uct a
revi
ew o
f
the
leve
ls o
f the
cost
of c
redi
t and
mak
e
reco
mm
enda
tions
to th
e dt
i.
R11.
2m
Cond
uct 6
0
inve
stig
atio
ns
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R11.
4m
A�o
rdab
le le
vels
of
cred
it pr
omot
ed.
Incr
ease
com
plia
nce
with
prov
isio
ns
pert
aini
ng to
the
tota
l cos
t of
cred
it.
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
16
.4 Q
uart
erly
Mile
ston
es fo
r Pro
gram
me
1
Redu
ced
leve
ls of
over
-inde
bted
ness
.
Impr
ove
com
plia
nce
with
a�or
dabi
lity
asse
ssm
ent
regu
latio
ns.
Num
ber o
f
prov
ince
s visi
ted
to m
onito
r
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
*7 p
rovi
nces
visit
ed to
mon
itor
cred
it pr
ovid
er
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers.
9 pr
ovin
ces v
isite
d
to m
onito
r cre
dit
prov
ider
com
plia
nce
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
on
non-
com
plia
nt
cred
it pr
ovid
ers.
R6.7
m
1 R0.8
m
3 R1.9
m
3 R2.5
m
2 R1.5
mA�
orda
ble
leve
ls
of c
redi
t
prom
oted
.
Incr
ease
com
plia
nce
with
regu
latio
ns
pert
aini
ng to
the
tota
l cos
t of c
redi
t.
Num
ber o
f
inve
stig
atio
ns
cond
ucte
d to
enfo
rce
regu
latio
ns a
nd
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
*15
inve
stig
atio
ns
cond
ucte
d an
d
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
Cond
uct 4
0
inve
stig
atio
ns a
nd
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R11m
8 R2.4
m
12 R3.1
m
12 R3.1
m
8 R2.4
m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Base
line
2016
/17
Ann
ual T
arge
tQ
uart
erly
Mile
ston
es
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
19
20
Curr
ent p
aym
ent
Com
pens
atio
n of
em
ploy
ees
Goo
ds &
ser
vice
s, et
c.
R11m
R8m
R12m
R6.6
m
R4m
R13m
R8.6
m
R8.3
m
R9m
R8.7
m
R9.1
m
R8.9
m
R9.6
m
R9.3
m
--
--
--
-Pa
ymen
ts o
f cap
ital a
sset
s
Build
ing
and
othe
r �xe
d st
ruct
ures
Mac
hine
ry a
nd e
quip
men
t
Oth
er c
lass
i�ca
tions
--
--
--
-
Econ
omic
Cla
ssi�
cati
on
Prog
ram
me
Nam
e:
2012
/13
R ’0
00
Expe
ndit
ure
Out
com
e
2013
/14
R ’0
0020
14/1
5R
’000
2015
/16
R ’0
00
Adj
uste
dA
ppro
pria
tion
2016
/17
R ’0
0020
17/1
8R
’000
2018
/19
R ’0
00
Med
ium
-Ter
m E
xpen
ditu
re E
stim
ate
16.5
Fin
anci
al P
lan
(Exp
endi
ture
est
imat
es fo
r pro
gram
me
1)
17. P
rogr
amm
e 2:
To
prot
ect c
onsu
mer
s fr
om a
buse
and
unf
air p
ract
ices
in th
e co
nsum
er c
redi
t mar
ket a
nd
a
ddre
ss o
ver-
inde
btne
ss.
17
.1 P
urpo
se o
f the
pro
gram
me
Th
e pu
rpos
e of
this
pro
gram
me
is to
dec
reas
e th
e pr
actic
e of
reck
less
lend
ing
by c
redi
t pro
vide
rs. T
his
will
be
impl
emen
ted
by c
ondu
ctin
g in
vest
igat
ions
and
taki
ng e
nfor
cem
ent
a
ctio
n on
non
-com
plia
nt c
redi
t pro
vide
rs.
17
.2 D
escr
iptio
n of
the
prog
ram
me
In
vest
igat
ions
will
be
cond
ucte
d pr
oact
ivel
y by
the
NCR
. Com
plai
nts
repo
rts
that
are
lodg
ed b
y co
nsum
ers
and
repo
rts
of n
on-c
ompl
ianc
e re
port
ed b
y Ac
coun
ting
O�
cers
and
au
dito
rs w
ill b
e in
vest
igat
ed th
roug
h re
activ
e m
echa
nism
s. A
ppro
pria
te e
nfor
cem
ent a
ctio
n w
ill b
e ta
ken
whe
re n
eces
sary
.
Num
ber o
f cre
dit
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
- R30m
- R39.
2m
15 c
ompl
ianc
e
notic
es/
com
plia
nce
cert
i�ca
tes
whe
re n
eces
sary
.
R35m
*40
cred
it
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
R28.
3m
60 c
redi
t
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
28.5
m
70 c
redi
t
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
29.2
m
80 c
redi
t
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
30.1
m
Dec
reas
ed le
vels
of
reck
less
lend
ing
prac
tices
.
Goa
l/O
utco
me
Cond
uct r
eckl
ess
lend
ing
inve
stig
atio
ns
and
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
Num
ber o
f
mul
timed
ia
awar
enes
s
cam
paig
ns
(radi
o/TV
/inte
rvie
ws/
new
s prin
t)
cond
ucte
d
misl
eadi
ng o
n
adve
rtise
men
ts.
--
--
30 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int o
n
mis
lead
ing
adve
rtis
emen
ts.
R1.1
m
35 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int o
n
mis
lead
ing
adve
rtis
emen
ts.
R1.2
m
40 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int o
n
mis
lead
ing
adve
rtis
emen
ts.
R1.3
m
Impr
ove
awar
enes
s on
mis
lead
ing
adve
rtis
emen
ts
and
hone
st
disc
losu
res
by
cons
umer
s on
a�or
dabi
lity
test
s.
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
17
.3 P
erfo
rman
ce in
dica
tors
and
per
form
ance
targ
ets p
er p
rogr
amm
e.
21
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
17
.4 Q
uart
erly
Mile
ston
es fo
r Pro
gram
me
2
Dec
reas
ed le
vels
of re
ckle
ss le
ndin
g
prac
tices
.
Cond
uct r
eckl
ess
lend
ing
inve
stig
atio
ns a
nd
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
Num
ber o
f cre
dit
prov
ider
s
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
*40
cred
it
prov
ider
s’
inve
stig
atio
ns
cond
ucte
d an
d
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
60 c
redi
t pro
vide
rs
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R28.
5m
15 R7.3
m
16 R7.5
m
13 R6m
2 R1.5
mIm
prov
e
awar
enes
s on
misl
eadi
ng
adve
rtise
men
ts
and
hone
st
disc
losu
res b
y
cons
umer
s on
a�or
dabi
lity
test
s.
Num
ber o
f
mul
timed
ia
awar
enes
s
cam
paig
ns
(radi
o/TV
/
inte
rvi w
s/ne
ws
prin
t) co
nduc
ted
on m
isle
adin
g
adve
rtis
emen
ts.
-30
of a
ny o
f the
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s prin
t on
mis
lead
ing
adve
rtis
emen
ts.
R1.1
m
6 R0.2
m
10 R0.4
m
6 R0.2
m
8 R0.3
m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Base
line
2016
/17
Ann
ual T
arge
tQ
uart
erly
Mile
ston
es
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
22
23
Curr
ent p
aym
ent
Com
pens
atio
n of
em
ploy
ees
Goo
ds &
ser
vice
s, et
c.
R12m
R27.
2m
R14m
R21m
R16m
R13m
R15.
6m
R12.
7m
R16.
2m
R13.
4m
R16.
7m
R13.
m
R17.
4m
R14m
Oth
er c
lass
i�ca
tions
--
---
--
-
Econ
omic
Cla
ssi�
cati
on
Prog
ram
me
Nam
e:
2012
/13
R ’0
00
Expe
ndit
ure
Out
com
e
2013
/14
R ’0
0020
14/1
5R
’000
2015
/16
R ’0
00
Adj
uste
dA
ppro
pria
tion
2016
/17
R ’0
0020
17/1
8R
’000
2018
/19
R ’0
00
Med
ium
-Ter
m E
xpen
ditu
re E
stim
ate
17.5
Fin
anci
al P
lan
(Exp
endi
ture
est
imat
es fo
r pro
gram
me
2)
18.
Prog
ram
me
3: T
o en
hanc
e th
e qu
alit
y an
d ac
cura
cy o
f cre
dit b
urea
u in
form
atio
n.
18
.1 P
urpo
se o
f the
pro
gram
me
Th
e pu
rpos
e of
this
pro
gram
me
is to
incr
ease
com
plia
nce
by c
redi
t bur
eaus
thro
ugh
com
plia
nce
mon
itorin
g an
d in
vest
igat
ions
and
by
taki
ng a
ppro
pria
te e
nfor
cem
ent a
ctio
n
w
here
nec
essa
ry.
18
.2 D
escr
iptio
n of
the
prog
ram
me
In
vest
igat
ions
and
com
plia
nce
mon
itorin
g w
ill b
e co
nduc
ted
proa
ctiv
ely
by th
e N
CR. C
ompl
aint
s th
at a
re lo
dged
by
cons
umer
s w
ill b
e in
vest
igat
ed th
roug
h re
activ
e
m
echa
nism
s. Ba
sed
on th
e ou
tcom
e of
the
inve
stig
atio
ns, a
ppro
pria
te e
nfor
cem
ent a
ctio
n w
ill b
e ta
ken
whe
re n
eces
sary
.
--
--
--
-Pa
ymen
ts o
f cap
ital a
sset
s
Build
ing
and
othe
r �xe
d st
ruct
ures
Mac
hine
ry a
nd e
quip
men
t
Num
ber o
f cre
dit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
2 cr
edit
bure
aus
inve
stig
atio
ns
cond
ucte
d &
enfo
rcem
ent
actio
n ta
ken
in
term
s of
sec
tions
43,7
0,71
,72
and
regu
latio
ns 1
7 to
20 o
f the
NCA
.
R11.
4m
2 cr
edit
bure
aus
inve
stig
atio
ns
cond
ucte
d &
enfo
rcem
ent
actio
n ta
ken
in
term
s of
sec
tions
43,7
0,71
,72
and
regu
latio
ns 1
7 to
20 o
f the
NCA
.
R6.2
m
2 cr
edit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R14m
*2 c
redi
t bur
eaus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R14.
9m
3 cr
edit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R14.
15m
4 cr
edit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R15m
5 cr
edit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R15.
4
Impr
oved
cons
umer
cre
dit
info
rmat
ion.
Goa
l/O
utco
me
Incr
ease
com
plia
nce
by c
redi
t bur
eaus
in re
spec
t of
cons
umer
cre
dit
info
rmat
ion.
Num
ber o
f cre
dit
bure
aus
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
--
- R6.2
m
14 c
redi
t bur
eaus
audi
ted
repo
rts
revi
ewed
and
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R9.6
m
All
regi
ster
ed
cred
it bu
reau
s
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R10m
All
regi
ster
ed
cred
it bu
reau
s
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R10.
5m
All
regi
ster
ed
cred
it bu
reau
s
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R10.
8m
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
18
.3 P
erfo
rman
ce in
dica
tors
and
per
form
ance
targ
ets p
er p
rogr
amm
e.
24
25
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
18
.4 Q
uart
erly
Mile
ston
es fo
r Pro
gram
me
3
Impr
oved
cons
umer
cre
dit
info
rmat
ion.
Incr
ease
com
plia
nce
by c
redi
t bur
eaus
in re
spec
t of
cons
umer
cre
dit
info
rmat
ion.
Num
ber o
f cre
dit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
*2 c
redi
t bur
eaus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
3 cr
edit
bure
aus
inve
stig
ated
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R14
.15m
Obt
ain
appr
oval
of
the
3 cr
edit
bure
aus
inve
stig
atio
ns.
R0.3
m
Com
men
ce
inve
stig
atio
n of
the
3 cr
edit
bure
aus.
R1.5
m
Cont
inue
with
inve
stig
atio
n of
the
3 cr
edit
bure
aus .
R8m
Fina
lise
inve
stig
atio
ns o
f
the
3 cr
edit
bure
aus a
nd ta
ke
appr
opria
te
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
R4.3
5mN
umbe
r of c
redi
t
bure
aus a
udite
d
repo
rts r
evie
wed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
*14
cred
it bu
reau
s
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
14 c
redi
t bur
eaus
audi
ted
repo
rts
revi
ewed
and
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R10m
Revi
ew a
udito
rs’
repo
rts f
rom
cre
dit
bure
aus a
nd
appr
opria
te
corr
ectiv
e ac
tion
take
n w
here
nece
ssar
y.
R1.4
m
Cont
inue
to ta
ke
appr
opria
te
corr
ectiv
e ac
tion
whe
re n
eces
sary
.
R3m
- R3m
- R2.6
m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
reBa
selin
e20
16/1
7A
nnua
l Tar
get
Qua
rter
ly M
ilest
ones
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
Curr
ent p
aym
ent
Com
pens
atio
n of
em
ploy
ees
Goo
ds &
ser
vice
s, et
c.
Paym
ents
of c
apita
l ass
ets
Build
ing
and
othe
r �xe
d st
ruct
ure
Mac
hine
ry &
equ
ipm
ent
R5m
R6.6
m
R7m
R5.4
m
R9m
R14.
6m
R9m
R14.
9m
R9.5
5m
R14.
6m
R10.
5m
R15.
0m
R11m
R15.
2m
--
---
--
-
Econ
omic
Cla
ssi�
cati
on
Prog
ram
me
Nam
e:
2012
/13
R ’0
00
Expe
ndit
ure
Out
com
e
2013
/14
R ’0
0020
14/1
5R
’000
2015
/16
R ’0
00
Adj
uste
dA
ppro
pria
tion
2016
/17
R ’0
0020
17/1
8R
’000
2018
/19
R ’0
00
Med
ium
-Ter
m E
xpen
ditu
re E
stim
ate
18.5
Fin
anci
al P
lan
(Exp
endi
ture
est
imat
es fo
r pro
gram
me
3)
Oth
er c
lass
i�ca
tions
--
---
--
-
26
19 P
rogr
amm
e 4:
To
impr
ove
NCR
’s op
erat
iona
l e�
ecti
vene
ss
19.1
Pur
pose
of t
he p
rogr
amm
e
The
purp
ose
of th
is p
rogr
amm
e is
to im
prov
e th
e N
CR’s
oper
atio
nal e
�ci
ency
and
ser
vice
del
iver
y.
19
.2 D
escr
iptio
n of
the
prog
ram
me
Th
is w
ill b
e do
ne th
roug
h co
ntin
uous
impr
ovem
ent o
f the
ICT
syst
ems.
19
.3 P
erfo
rman
ce in
dica
tors
and
per
form
ance
targ
ets p
er p
rogr
amm
e.
% o
f upt
ime
avai
labi
lity
of th
e
ICT
(Reg
istr
atio
ns
and
Com
plai
nts)
syst
ems.
R30m
R45m
Impl
emen
tatio
n of
reco
mm
enda
tions
of th
e IC
T
asse
ssm
ent.
R44.
1m
*95%
upt
ime
of
the
ICT
syst
em.
R39.
6m
96%
upt
ime
of th
e
ICT
syst
em.
R36.
6m
97%
upt
ime
of
the
ICT
sys
tem
.
R37.
1m
98%
upt
ime
of
the
ICT
syst
em.
R38.
6m
E�ci
ent s
ervi
ce
deliv
ery.Goa
l/O
utco
me
Impr
ove
oper
atio
nal
e�ci
ency
thro
ugh
auto
mat
ed
proc
esse
s.
SDIP
app
rove
d an
d
impl
emen
ted.
Serv
ice
Del
iver
y
Impr
ovem
ent
Plan
.
--
--
SDIP
201
6-20
19
appr
oved
,
impl
emen
ted
and
repo
rt p
rodu
ced.
R4.2
m
Cont
inue
with
impl
emen
tatio
n
of S
DIP
.
R4.3
4m
Iden
tify
new
impr
ovem
ent
area
and
dev
elop
the
new
SD
IP fo
r
2018
/19
–
2020
/21.
R4.5
m
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
27
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
19
.4 Q
uart
erly
Mile
ston
es fo
r Pro
gram
me
4
E�ci
ent s
ervi
ce
deliv
ery.
Impr
ove
oper
atio
nal
e�ci
ency
thro
ugh
auto
mat
ed
proc
esse
s.
% o
f upt
ime
avai
labi
lity
of th
e
ICT
(Reg
istra
tions
and
Com
plai
nts)
syst
ems.
*95%
upt
ime
of th
e
ICT
syst
em.
96%
upt
ime
of th
e
ICT
syst
em.
R36.
6m
96%
upt
ime
of th
e
ICT
syst
em.
R8.3
m
96%
upt
ime
of th
e
ICT
syst
em.
R8.4
m
96%
upt
ime
of th
e
ICT
syst
em.
R9.4
m
96%
upt
ime
of th
e
ICT
syst
em.
R10.
5mSD
IP, a
ppro
ved
and
impl
emen
ted.
Serv
ice
Del
iver
y
Impr
ovem
ent P
lan
-N
ew S
DIP
2016
-201
9
appr
oved
,
impl
emen
ted
and
repo
rt p
rodu
ced.
R4.2
m
Dra
ft SD
IP fo
r
2016
-201
9 a
nd
subm
it to
dti
for
revi
ew a
nd in
puts
.
Inco
rpor
ate
inpu
ts
from
the
dti a
nd
subm
it to
Acco
untin
g
Auth
ority
for
appr
oval
.
R1.4
m
Com
men
ce
impl
emen
tatio
n of
the
SDIP.
R1.4
m
Fina
lise
impl
emen
tatio
n
and
prod
uce
a
repo
rt.
R1.4
m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Base
line
2016
/17
Ann
ual T
arge
tQ
uart
erly
Mile
ston
es
Curr
ent p
aym
ent
Com
pens
atio
n of
em
ploy
ees
Goo
ds &
ser
vice
s, et
c.
Paym
ents
of c
apita
l ass
ets
Build
ing
and
othe
r �xe
d st
ruct
ure
Mac
hine
ry &
equ
ipm
ent
R10m
R14.
3m
R10m
R39.
1m
R12m
R29m
R13.
8m
R20.
7m
R13.
9m
R20.
8m
R14.
55m
R21.
09m
R15.
4m
R22m
R2.3
mR1
4.7m
-R5.9
mR5
.1m
R6.1
mR5
.8m
R5.7
m
Econ
omic
Cla
ssi�
cati
on
Prog
ram
me
Nam
e:
2012
/13
R ’0
00
Expe
ndit
ure
Out
com
e
2013
/14
R ’0
0020
14/1
5R
’000
2015
/16
R ’0
00
Adj
uste
dA
ppro
pria
tion
2016
/17
R ’0
0020
17/1
8R
’000
2018
/19
R ’0
00
Med
ium
-Ter
m E
xpen
ditu
re E
stim
ate
19.5
Fin
anci
al P
lan
(Exp
endi
ture
est
imat
es fo
r pro
gram
me
4)
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
Oth
er c
lass
i�ca
tions
--
---
--
-
28
20. P
rogr
amm
e 5:
To
ensu
re e
�ec
tive
impl
emen
tati
on o
f the
Nat
iona
l Cre
dit A
men
dmen
t Act
(N
CAA
)
20.1
Pur
pose
of t
he p
rogr
amm
e
The
purp
ose
of th
is p
rogr
amm
e is
to e
nsur
e im
prov
ed c
ompl
ianc
e w
ith th
e re
gula
tions
and
incr
ease
d co
nsum
er p
rote
ctio
n.
20
.2 D
escr
iptio
n of
the
prog
ram
me
Im
plem
enta
tion
will
be
done
thro
ugh
awar
enes
s ca
mpa
igns
, com
plia
nce
mon
itorin
g an
d in
vest
igat
ions
and
app
ropr
iate
enf
orce
men
t act
ion
will
be
take
n w
here
nec
essa
ry.
20
.3 P
erfo
rman
ce in
dica
tors
and
per
form
ance
targ
ets p
er p
rogr
amm
e
Num
ber o
f
wor
ksho
ps
cond
ucte
d w
ith
rele
vant
stak
ehol
ders
on
NCA
A.
--
82 w
orks
hops
with
rele
vant
stak
ehol
ders
.
*40
wor
ksho
ps
with
rele
vant
stak
ehol
ders
.
R9.4
m
45 w
orks
hops
with
rele
vant
stak
ehol
ders
.
R9.6
m
50 w
orks
hops
with
rele
vant
stak
ehol
ders
.
R9.9
m
55 w
orks
hops
with
rele
vant
stak
ehol
ders
.
R10.
2m
Impr
oved
com
plia
nce
with
regu
latio
ns a
nd
cons
umer
prot
ectio
n.
Goa
l/O
utco
me
Impr
ove
awar
enes
s an
d
com
plia
nce.
Num
ber o
f
mul
timed
ia
awar
enes
s
cam
paig
ns
(rad
io/T
V/in
terv
iew
s/ne
ws
prin
t)
cond
ucte
d on
NCA
A.
--
77 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
inte
rvie
ws
-New
s pr
int.
*40
of a
ny o
f the
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int.
R1.8
m
50 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int.
R1.9
5m
55 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int.
R2m
60 o
f any
of t
he
follo
win
g:
-Rad
io
-TV
-inte
rvie
ws
-New
s pr
int.
R2.2
m
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
29
Num
ber o
f out
reac
h
prog
ram
mes
and
exhi
bitio
ns (m
all
activ
atio
ns/O
utsi
de
Broa
dcas
t/ R
oad
show
s/ Im
bizo
s)
cond
ucte
d on
NCA
A.
--
18 o
f any
of
the
follo
win
g
activ
ities
:
-exh
ibiti
ons
-mal
l act
ivat
ions
-Out
side
Broa
dcas
t (O
B)
-Roa
d sh
ows.
*8 o
f any
of t
he
follo
win
g:
-mal
l act
ivat
ions
/
exhi
bitio
ns/ O
B/
Road
sho
ws/
Imbi
zos
in p
eri
urba
n an
d ru
ral
area
s.
R1.4
3m
11 o
f any
of t
he
follo
win
g:
-mal
l act
ivat
ions
/
exhi
bitio
ns/ O
B/
Road
sho
ws/
Imbi
zos
in p
eri
urba
n an
d ru
ral
area
s.
R1.5
m
15 o
f any
of t
he
follo
win
g:
-mal
l act
ivat
ions
/
exhi
bitio
ns/ O
B/
Road
sho
ws/
Imbi
zos
in p
eri
urba
n an
d ru
ral
area
s.
R1.5
6m
18 o
f any
of t
he
follo
win
g:
- mal
l
activ
atio
ns/
exhi
bitio
ns/ O
B/
Road
sho
ws/
Imbi
zos
in p
eri
urba
n an
d ru
ral
area
s.
R1.8
mN
umbe
r of s
peci
al
inve
stig
atio
ns
cond
ucte
d an
d
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
Impr
oved
com
plia
nce
with
regu
latio
ns a
nd
cons
umer
prot
ectio
n.
Cond
uct s
peci
al
inve
stig
atio
ns
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
--
Cond
uct 4
raid
s in
one
prov
ince
and
take
app
ropr
iate
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
*Con
duct
raid
s in
thre
e (3
)
prov
ince
s an
d
take
app
ropr
iate
enfo
rcem
ent
actio
n w
here
nece
ssar
y.
R1.7
7m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e
follo
win
g:
- Rai
ds in
four
(4)
prov
ince
s
- Pr
escr
ibed
deb
t in
4 ci
ties
-Gar
nish
ee o
rder
s in
4 ci
ties
-Unr
egist
ered
new
entr
ants
(cre
dit
prov
ider
s, AD
Rs,
PDAs
) in
4 ci
ties
and
take
app
ropr
iate
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
R1.8
m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e
follo
win
g:
- Rai
ds in
four
(4)
prov
ince
s
- Pre
scrib
ed d
ebt i
n
4 ci
ties
-Gar
nish
ee o
rder
s
in 4
citi
es
-Unr
egist
ered
new
entr
ants
(cre
dit
prov
ider
s, AD
Rs,
PDAs
) in
4 ci
ties
and
take
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re
nece
ssar
y.
R1.9
m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e
follo
win
g:
- Rai
ds in
four
(4)
prov
ince
s
- Pre
scrib
ed d
ebt i
n
4 ci
ties
-Gar
nish
ee o
rder
s
in 4
citi
es
-Unr
egist
ered
new
entr
ants
(cre
dit
prov
ider
s, AD
Rs,
PDAs
) in
4 ci
ties
and
take
appr
opria
te
enfo
rcem
ent a
ctio
n
take
n w
here
nece
ssar
y.
R2.2
m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Aud
ited
Act
ual P
erfo
rman
ce
2012
/13
2013
/14
2014
/15
Esti
mat
edPe
rfor
man
ceM
ediu
m T
erm
Tar
gets
2015
/16
2016
/17
2017
/18
2018
/19
30
20
.4 Q
uart
erly
Mile
ston
es fo
r Pro
gram
me
5
Impr
oved
co
mpl
ianc
e w
ith
regu
latio
ns a
nd
cons
umer
pr
otec
tion.
Impr
ove
awar
enes
s an
d co
mpl
ianc
e.
Num
ber o
f w
orks
hops
co
nduc
ted
with
re
leva
nt
stak
ehol
ders
on
NCA
A.
*40
wor
ksho
ps
with
rele
vant
st
akeh
olde
rs.
45 w
orks
hops
w
ith re
leva
nt
stak
ehol
ders
R9.6
m
10 R1.8
5m
12 R2.9
5m
11 R1.8
5m
12 R2.9
5mN
umbe
r of
mul
timed
ia
awar
enes
s ca
mpa
igns
(r
adio
/TV/
in
terv
iew
s/ne
ws
prin
t) c
ondu
cted
on
NCA
A.
*40
of a
ny o
f the
fo
llow
ing:
-Rad
io
-TV
-in
terv
iew
s-N
ews
prin
t.
50 o
f any
of t
he
follo
win
g:-R
adio
-T
V
-inte
rvie
ws
-New
s pr
int.
R1.9
5m
12 0.45
m
15 0.62
m
11 R0.4
3m
12 0.45
mN
umbe
r of
outr
each
pr
ogra
mm
es a
nd
exhi
bitio
ns (m
all
activ
atio
ns/
Out
side
Br
oadc
ast/
Roa
d sh
ows/
Imbi
zos)
co
nduc
ted
on
NCA
A.
*8 o
f any
of t
he
follo
win
g:-m
all a
ctiv
atio
ns/
-exh
ibiti
ons
-OB/
Roa
d sh
ows/
Im
bizo
s in
per
i ur
ban
and
rura
l ar
eas.
11 o
f any
of t
he
follo
win
g:-m
all a
ctiv
atio
ns/
-exh
ibiti
ons
-OB/
Roa
d sh
ows/
Im
bizo
s in
per
i ur
ban
and
rura
l ar
eas.
R1.5
m
3 R0.4
08m
3 R0.4
08m
2 R0.2
76m
3 R0.4
08m
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Base
line
2015
/16
2016
/17
Ann
ual T
arge
tQ
uart
erly
Mile
ston
es
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
31
*Bas
ed o
n th
e es
timat
ed a
nnua
l per
form
ance
targ
ets
for 2
015/
16 �
nanc
ial y
ear
Impr
oved
co
mpl
ianc
e w
ith
regu
latio
ns a
nd
cons
umer
pr
otec
tion.
Cond
uct s
peci
al
inve
stig
atio
ns a
nd
take
app
ropr
iate
en
forc
emen
t ac
tion
whe
re
nece
ssar
y.
Num
ber o
f spe
cial
in
vest
igat
ions
co
nduc
ted
and
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re.
*Con
duct
raid
s in
th
ree
(3)
prov
ince
s an
d ta
ke a
ppro
pria
te
enfo
rcem
ent
actio
n w
here
ne
cess
ary.
Goa
l/O
utco
me
Out
put
Perf
orm
ance
Indi
cato
r/m
easu
re
Base
line
2016
/17
Ann
ual T
arge
tQ
uart
erly
Mile
ston
es
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e
follo
win
g:
- Rai
ds in
four
(4)
prov
ince
s
- Pre
scrib
ed d
ebt i
n
4 ci
ties
- Gar
nish
ee o
rder
s
in 4
citi
es
- Unr
egis
tere
d ne
w
entr
ants
(cre
dit
prov
ider
s, A
DRs
,
PDA
s) in
4 c
ities
and
take
appr
opria
te
enfo
rcem
ent a
ctio
n
whe
re n
eces
sary
.
1.7m
Plan
ning
and
in
form
atio
n ga
ther
ing.
R0.1
m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e fo
llow
ing:
- Rai
ds in
two
(2)
prov
ince
s -
Pres
crib
ed d
ebt
in 2
citi
es
-Gar
nish
ee o
rder
s in
2 c
ities
-U
nreg
iste
red
new
ent
rant
s (c
redi
t pro
vide
rs,
AD
Rs, P
DA
s) in
2
citie
san
d ta
ke
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R0.8
m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e fo
llow
ing:
- R
aids
in o
ne (1
) pr
ovin
ces
- Pr
escr
ibed
deb
t in
1 c
ity
-Gar
nish
ee o
rder
s in
1ci
ty
-Unr
egis
tere
d ne
w e
ntra
nts
(cre
dit p
rovi
ders
, A
DRs
, PD
As)
in 1
ci
ty a
nd ta
ke
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R0.
450m
Cond
uct s
peci
al
inve
stig
atio
ns
rela
ting
to th
e fo
llow
ing:
- R
aids
in o
ne (1
) pr
ovin
ces
- Pr
escr
ibed
deb
t in
1 c
ity
-Gar
nish
ee o
rder
s in
1ci
ty
-Unr
egis
tere
d ne
w e
ntra
nts
(cre
dit p
rovi
ders
, A
DRs
, PD
As)
in 1
ci
tyan
d ta
ke
appr
opria
te
enfo
rcem
ent
actio
n ta
ken
whe
re n
eces
sary
.
R0.4
50m
1st Q
uart
er2nd
Qua
rter
3rd Q
uart
er4th
Qua
rter
32
Curr
ent p
aym
ent
Com
pens
atio
n of
em
ploy
ees
Goo
ds &
ser
vice
s, et
c.
Paym
ents
of c
apita
l ass
ets
Build
ing
and
othe
r �xe
d st
ruct
ure
Mac
hine
ry &
equ
ipm
ent
--
R10.
8m
R4m
R9.6
m
R4.8
m
R9.8
5m
R5m
R10.
26m
R5.1
m
R10.
9m
R5.5
m
--
---
--
-
Econ
omic
Cla
ssi�
cati
on
Prog
ram
me
Nam
e:
2012
/13
R ’0
00
Expe
ndit
ure
Out
com
e
2013
/14
R ’0
0020
14/1
5R
’000
2015
/16
R ’0
00
Adj
uste
dA
ppro
pria
tion
2016
/17
R ’0
0020
17/1
8R
’000
2018
/19
R ’0
00
Med
ium
-Ter
m E
xpen
ditu
re E
stim
ate
20.5
Fin
anci
al P
lan
(Exp
endi
ture
est
imat
es fo
r pro
gram
me
5)
Oth
er c
lass
i�ca
tions
--
---
--
-
33
34
PART C: Links to other plans21. Asset Management Plan
The NCR continues to manage and safeguard its assets. The NCR has implemented electronic scanning and have appointed departmental asset champions to verify �xed assets on a monthly basis. The Finance Department is responsible for conducting veri�cation spot checks on a quarterly basis. Each department has an assets veri�cation champion. Obsolete and redundant assets are disposed in line with the NCR’s policy and Treasury regulations. The Facilities Department is responsible for repairs and maintenance of the NCR’s assets.
22. Information Technology Plan
The NCR makes extensive use of ICT systems to deliver on its mandate. It is also in the process of developing a new ICT system which will enhance its e�ciency and e�ectiveness for service delivery. The NCR is aligning its ICT Governance Framework to the Department of Public Service Administration (DPSA). The ICT Strategic Plan is in place.
23. Risk Management and FraudPrevention Plan 23.1 Risk Management Process: The NCR Fraud Prevention Plan has been developed within the context of the Risk Management Framework with the aim to reduce fraud to an absolute minimum and e�ect policies and procedures to maintain the risk of fraud within tolerable levels, and preferably, to secure transparency, accountability and management of revenue, assets, and liabilities within a spirit of good corporate governance, of the institutions to which the NCA applies. zero, at all times.
The Public Finance Management Act, Act No.1 of 1999 (PFMA), as amended, has as its prime objective
The main objectives of the plan include:
• To create an anti-fraud culture in which countering fraud is the joint responsibility of all stakeholders.
• To ensure that the totality of anti-fraud measures represents the strongest deterrent possible to those perpetrating or considering perpetrating fraud.
• To develop the most e�ective measures to prevent fraud by developing systems with administrative and technical features, which make the NCR less vulnerable to fraud.
• To establish the most e�ective processes to detect fraud by ensuring that departments have the ability to detect
existing and new types of fraud e�ectively and timeously and implementing e�ective liaison procedures to ensure that prompt action is taken to minimise losses to the NCR.
• To take appropriate legal action and apply realistic sanctions where an investigation reveals fraud by ensuring that there is integration of risk management, ownership of the control environment, investigative and legal skills.
• To use all possible means to seek redress in respect of money and assets lost to fraud, by ensuring that the recovery of defrauded money and assets forms an essential part of our overall strategy, in order to ensure that committing fraud does not pay.
The main principles of the plan are:
• The NCR’s creating a fraud intolerant culture; • Fraud Prevention; • Fraud Detection; • Fraud Investigation; • Appropriate action (e.g. prosecution, disciplinary action, etc) and • Appropriate recovery or the application of sanction.
The Code of Conduct contains the fundamental ethical principles which sta� members and those who render services to the NCR on a contract basis, must adhere to. The principles are categorised as:
• Professionalism and integrity; • Obligations to stakeholders; and • Conduct in relation to others.
Basic internal controls to prevent and detect fraud and the training of employees in internal controls and their day-to-day duties are critical to the success of this plan. The systems, policies and procedures of the NCR prescribe various controls, which, if e�ectively implemented, would limit the risk of fraud. These controls are categorised as:
• Prevention controls:
- Authorisation - Custody of assets - Detection controls - Physical Supervision - Management information - Segregation of duties
• Physical and information security:
- Physical security - Information security
35
The fraud detection and investigation process involves the following: • Internal audit • Ongoing risk assessment and management • Fraud detection • Reporting and monitoring • Fraud policy
Implementation and maintenance of the fraud prevention plan includes:
• Creating awareness • Communication • On-going maintenance and review
The Accounting Authority is responsible for ensuring that a formal risk assessment is undertaken at least annually for the purpose of making its public statement on risk management.
The NCR recognises that the consistent and e�cient application of disciplinary measures is an integral component of e�ective fraud prevention. The NCR will continue to pursue the following steps to expedite the consistent, e�cient and speedy application of disciplinary measures:
• Creating awareness amongst employees of forbidden conduct in terms of the disciplinary code and regular monitoring and review of application of discipline with the objective of improving weaknesses identi�ed.
• Where managers are found to be inconsistent and/or ine�cient in the application of discipline, the NCR will consider �rm action.
• The management of the NCR will improve awareness and knowledge of the relevant systems, policies and procedures. In the pursuit hereof, the NCR will create awareness of existing and new policies and procedures to ensure that all employees are made aware of, and adequately trained in, the implementation of the policies and procedures relevant to their duties and responsibilities.
• Line management must be held accountable for complying with, and implementing, the NCR’s systems, policies and procedures and for preventing fraud. This will continually be addressed by reviewing job description and performance appraisal processes and aligning this to the entity’s strategy. Where managers are found to be inconsistent and/or ine�cient in the application of discipline, the NCR will consider �rm action.
• The Fraud Prevention Policy, central to the Plan, addresses the stance of the NCR, including the response mechanisms in
place to report, investigate and resolve incidents of fraud impacting the NCR. A critical component of the policy addresses the practical execution phases and guidelines for decision-making at di�erent stages of the investigation.
• The role of the NCR’s Deputy Chief Executive O�cer (with the assistance of the Risk O�cer) includes the ongoing maintenance and review of the Plan, amongst other tasks.
Ongoing maintenance includes:
- Steering and taking responsibility for the Plan;
- Reviewing and making appropriate amendments to the Code and Fraud Policy;
-Considering fraud threats to the NCR and making recommendations to other appropriate committees or management;
- Evaluating fraud reports;
- Considering criminal activity threatening the NCR and making fraud prevention recommendations with regard to areas for examination;
- Monitoring action taken to implement recommendationsrelating to incidents of fraud;
-Amending the awareness programme as necessary, and implementing the changes; and
- Ensuring that ongoing communication and implementation strategies are developed and implemented.
The Plan will be reviewed on an annual basis, with quarterly implementation and progress reviews.
- All reports or allegations received by the DCEO are to be investigated on their merits, with a copy to the Internal Auditor.
- In the event that there is merit in the allegations, these must be recorded and reported to the CEO and investigated.
- If the CEO is involved, the allegation must be referred to the Minister of Trade and Industry for a decision.
- If the person involved is an EXCO member, the allegations must be reported to the Chairperson of the NCR Audit Committee who must decide on the course of action to be taken.
The above processes ensure that uninvolved parties are not negatively a�ected by malicious reports and that the intent to cause such damage is dealt with and disciplinary action taken where necessary.
36
23.2 Risk Strategy (Risk Register)
The NCR manages the key strategic risks it faces on a regular basis. The continuous review includes the update of both the strategic and operational risks on a periodic basis.
The following table provides a summary of the NCR’s key strategic risks, as well as the control improvement plan to mitigate the risks.
Risk Name Risk Control ActionInherentImpact
Financial Critical-Monthly variance reports to compare - Budget mid-term reviews and re-allocation of funds;- Approval of budget by EXCO & Audit Committee - Invoicing of all registrants a month before fees are due; - Submissions of additional funding requests to the dti; - Prepared and submitted budget e�ciency plan to the dti; - Provision for bad debt policy in place; - Lapsing of non-paying registrants; and -Raised the challenge with the portfolio committee.
Control improvement action plans 1. Remove registration threshold for credit providers in line with the NCAA. 2. Continue to engage with the dti for additional funding;3. Start the process of registration of PDAs 4. Imposition of penalties for late renewals 5. Issue registration certi�cates annually upon renewal and not once o�; and 6. Review of registration fees;Progress on action plans1. Awaiting publication of the notice by the dti. 2. Ongoing engagements with the dti regarding additional funding continue;3. The registration process for PDAs has commenced;4. A document for imposition of penalties has been drafted;5. A procurement process for the appointment of a service provider to issue window decals has begun; and6. Awaiting publication of the notice by the dti.
Service delivery
- Entered into MOU with Credit Ombud - Regular consumer education campaigns - Regular engagements with provincial a�airs o�ces; - Capacity building workshops; - Ongoing improvement on the IT infrastructure - Ongoing compliance monitoring and enforcement action; - Impact assessment studies; and- Procedure manual for invoice payments in place.
Control improvement action plans1. To develop the service delivery improvement plan;2. Ongoing improvement on IT infrastructure;3. SMS noti�cation for application for registration;4. Bulk noti�cation for registration & renewals;5. Automatic service rating of the call Centre agents;6. Special funding request from the dti for special projects; and7. Obtain approval from the dti to utilise PDA interest for consumer education and litigation.Progress on action plans1. The service delivery improvement plan is being developed for review and �nalisation by EXCO;3 &4 Bulk noti�cation for registration & renewal is in process;5. Automatic service rating of the call centre agents is being developed;6. Awaiting feedback from the dti regarding special funding request; and7. Approval to utilise PDA interest obtained from the dti.
Major
-Monthly variance reports to compare - Budget mid-term reviews and re-allocation of funds;- Approval of budget by EXCO & Audit Committee - Invoicing of all registrants a month before fees are due; - Submissions of additional funding requests to the dti; - Prepared and submitted budget e�ciency plan to the dti; - Provision for bad debt policy in place; - Lapsing of non-paying registrants; and -Raised the challenge with the portfolio committee.
Control improvement action plans 1. Remove registration threshold for credit providers in line with the NCAA. 2. Continue to engage with the dti for additional funding;3. Start the process of registration of PDAs 4. Imposition of penalties for late renewals 5. Issue registration certi�cates annually upon renewal and not once o�; and 6. Review of registration fees;Progress on action plans1. Awaiting publication of the notice by the dti. 2. Ongoing engagements with the dti regarding additional funding continue;3. The registration process for PDAs has commenced;4. A document for imposition of penalties has been drafted;5. A procurement process for the appointment of a service provider to issue window decals has begun; and6. Awaiting publication of the notice by the dti.
37
Risk Name Risk Control ActionInherentImpact
Information Technology
Major- Assessment of the new ICT infrastructure and implementation to date; - Amended the audit and risk terms of reference to cater for king 3 requirement on ICT governance;- Back-up by Metro�le;- Internal auditors ensure oversight role; - NCR COBIT/King III Governance Implementation plan documented; - Network infrastructure improved; - Additional servers acquired e.g. SAP, Operational system;- Network monitoring tool has been acquired; and - Network �rewall and anti-virus.
Control improvement action plans1. Review of the Business Continuity plan for all critical business applications; 2. Implementation of Control Objectives for Information Technology (COBIT); 3. Implement recommendations of PWC; 4. To implement the ICT disaster recovery plan; and 5. Implement recommendations of the ICT skills audit. Progress on action plans1. Service provider appointed to conduct the review; 2. A key foundation element of COBIT, namely Governance, has been implemented. The ICT Governance Framework was adopted in September 2015; 3. Implementation has commenced;4. Awaiting review of the BCP and additional funding; and5. In process of procuring skills of an ICT manager to address the capacity challenges and ICT sta� will attend Microsoft related training as part of up skilling
Human Resources
Signi�cant- HR policies in place (career development and succession planning policies) - Wellness programs in place - Learnership programme established - Work place forum established. - Some vacant positions have been and are �lled. - Retention and succession strategy.
Control improvement action plans1. Engagements with the dti for additional funding to continue in order to employ more sta� and obtain new o�ce space; and2. To �nalise the review of other HR policies Progress on action plansHR policies were reviewed by Internal audit. Inputs have been taken into consideration for �nal approval by the Accounting Authority.
Business Continuity
Signi�cant- Risk assessment on security was performed Currently implementing the recommendations of the assessment - Emergency exit ,staircase & �re extinguishers. - Information security policy in place - Insurance cover in place - NCR Security Policy is in place and signed o�. - IT asset register updated, monitored and reviewed regularly. - Supervisor Facilities and Security appointed. - Health and Safety Committee / Disaster Recovery Team established - CCTV surveillance, Electric fence, perimeter lighting, access control and alarm system are in place. - Security scanner in place. - Request for extension for current premises approved until 30 April 2017. - Fire drills are conducted - Drainage system in place; -Proper signage in place.
Control improvement action plans1. O�ce space or building to be identi�ed with disability friendliness; 2. Ongoing data encryption for new laptops; 3. Ongoing training for health and safety Committee / Disaster Recovery Team; 4. Installation of tracking devices for laptops; 5. Ongoing engagement with dti to address the funding challenges; and6. DRP to be approved.Progress on action plans1. Dependant of funding from the dti;2. Data encryption for new laptops is ongoing; and3. Training of the OHS Committee members was conducted in 2015.
- Entered into MOU with Credit Ombud - Regular consumer education campaigns - Regular engagements with provincial a�airs o�ces; - Capacity building workshops; - Ongoing improvement on the IT infrastructure - Ongoing compliance monitoring and enforcement action; - Impact assessment studies; and- Procedure manual for invoice payments in place.
24. Any subsidiary of statutory body reporting to the entityNot applicable: The NCR does not have subsidiaries.
25. Service delivery improvement PlanThe draft Service delivery plan for 2016-2019 is in place.
Materiality Signi�cant Framework
- Assessment of the new ICT infrastructure and implementation to date; - Amended the audit and risk terms of reference to cater for king 3 requirement on ICT governance;- Back-up by Metro�le;- Internal auditors ensure oversight role; - NCR COBIT/King III Governance Implementation plan documented; - Network infrastructure improved; - Additional servers acquired e.g. SAP, Operational system;- Network monitoring tool has been acquired; and - Network �rewall and anti-virus.
Control improvement action plans1. Review of the Business Continuity plan for all critical business applications; 2. Implementation of Control Objectives for Information Technology (COBIT); 3. Implement recommendations of PWC; 4. To implement the ICT disaster recovery plan; and 5. Implement recommendations of the ICT skills audit. Progress on action plans1. Service provider appointed to conduct the review; 2. A key foundation element of COBIT, namely Governance, has been implemented. The ICT Governance Framework was adopted in September 2015; 3. Implementation has commenced;4. Awaiting review of the BCP and additional funding; and5. In process of procuring skills of an ICT manager to address the capacity challenges and ICT sta� will attend Microsoft related training as part of up skilling
- HR policies in place (career development and succession planning policies) - Wellness programs in place - Learnership programme established - Work place forum established. - Some vacant positions have been and are �lled. - Retention and succession strategy.
- Risk assessment on security was performed Currently implementing the recommendations of the assessment - Emergency exit ,staircase & �re extinguishers. - Information security policy in place - Insurance cover in place - NCR Security Policy is in place and signed o�. - IT asset register updated, monitored and reviewed regularly. - Supervisor Facilities and Security appointed. - Health and Safety Committee / Disaster Recovery Team established - CCTV surveillance, Electric fence, perimeter lighting, access control and alarm system are in place. - Security scanner in place. - Request for extension for current premises approved until 30 April 2017. - Fire drills are conducted - Drainage system in place; -Proper signage in place.
Control improvement action plans1. O�ce space or building to be identi�ed with disability friendliness; 2. Ongoing data encryption for new laptops; 3. Ongoing training for health and safety Committee / Disaster Recovery Team; 4. Installation of tracking devices for laptops; 5. Ongoing engagement with dti to address the funding challenges; and6. DRP to be approved.Progress on action plans1. Dependant of funding from the dti;2. Data encryption for new laptops is ongoing; and3. Training of the OHS Committee members was conducted in 2015.
Section interms of
PFMA51(1)(g)
RequirementQuantitative Qualitative
Material & Signi�cance
An accounting authority for a public entity.
Must promptly inform the National Treasury of any new
entity which that public entity intends to establish, or in the
establishment of which it takes the initiative, and allow the
National Treasury a reasonable time to submit its decision
prior to formal establishment.
R1,179,891(2% of total assets at
31/03/15)
Any transaction of this nature that
causes any interest (equity or loans)
to be taken by the public entity in the
company to be established requires
approval from the Executive
Authority irrespective of its
materiality or signi�cance.54(2) Before a public entity concludes any of the following
transactions, the Accounting Authority for the public entity
must promptly and in writing inform the relevant treasury
of the transaction and submit relevant particulars of the
transaction to its Executive Authority for approval of the
transaction:
a) Establishment or participation in the establishment of a
company;
b) Participation in a signi�cant partnership, trust, unincor-
porated joint venture or similar arrangement;
c) Acquisition or disposal of a signi�cant shareholding in a
company;
d) Acquisition or disposal of a signi�cant asset;
e) Commencement or cessation of a signi�cant business
activity; and
f ) A signi�cant change in the nature or extent of its interest
in a signi�cant partnership, trust, unincorporated joint
venture or similar arrangement.
R1,179,891 (2% of total assets at
31/03/15)
Any transaction of this nature that
causes any interest (equity or loans)
to be taken by the public entity in the
company to be established requires
approval from the Executive
Authority irrespective of its
materiality or signi�cance.
Where ownership is control is
a�ected.
All acquisitions/disposals not
included in the NCR’s strategic
plan/budget; and /or
All acquisitions/disposals not in the
ordinary course of the NCR’s
business/mandate.
A business activity that falls outside
of a public entity’s core business
should be regarded as signi�cant. 55(2) The annual report and �nancial statements referred to in
subsection 55(2) must include particulars of:
a) any material losses through criminal conduct and any
irregular expenditure and fruitless and wasteful expendi-
ture that occurred during the �nancial year; and
b) any losses recovered or written-o�.
R1,179,891 (2% of total assets at
31/03/15)
38
Items (SO1)
1. Indicator title
Guide
Number of provinces visited to monitor compliance and appropriate enforcement action taken where necessary
2. Short de�nition To monitor non-compliances in di�erent provinces
3. Purpose/importance To combat reckless credit and over-indebtedness
6. Data limitations Incomplete or inaccurate information provided by the credit providers
7. Type of indicator Output
8. Calculation type Percentages and numbers
9. Reporting cycle Quarterly and Annually
10. New indicator Continues without change from previous year
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Compliance
5. Method of calculation • Attendance registers signed by the compliance officers and credit providers visited,• Compliance monitoring reports (provincial visit reports)• Copies of compliance notices issued (signed compliance notices)• Notice of complete filing from the National Consumer Tribunal (NCT)
4. Source/collection of data • To measure the level of affordability among consumers• To monitor the level of compliance by credit providers to the provisions of the Act
Items (SO1) Guide
1. Indicator title Number of investigations conducted to enforce regulations and appropriate enforcement action taken where necessary
2. Short de�nition Enforcement of regulations through investigations
3. Purpose/importance To decrease the levels of non-compliance with provisions of the Act
4. Source/collection of data • Investigation reports• Media reports• Court applications and affidavits• Court judgments/orders
Annexure: Indicator Pro�le
6. Data limitations Resources and capacity
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly and Annually
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
11. Desired performance Improved compliance with the Act and consumer redress
12. Indicator responsibility Manager: Investigations and Enforcement
39
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates.• Investigations reports
Items (SO2)
1. Indicator title
Guide
Number of credit provider’s investigated and appropriate enforcement action taken where necessary
2. Short de�nition To decrease the levels of non-compliance with provisions of the Act.
3. Purpose/importance To combat reckless credit and over-indebtedness.4. Source/collection of data • Investigation reports
• Tribunal/Court applications and affidavits • Tribunal/Court judgments/orders• Investigation database • Media reports
6. Data limitations Resources – capacity and expertise Tribunal and Tribunal rules National O�ce enforcing country-wide
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Investigations and Enforcement
Items (SO2)
1. Indicator title
Guide
Number of multimedia awareness campaigns (radio/TV/interviews/news print) conducted on misleading advertisments
2. Short de�nition A report on a number of multimedia awareness campaigns conducted on the misleading advertisements
3. Purpose/importance To educate and create public awareness for consumers on the amendments of the Act through multimedia awareness campaigns
5. Method of calculation • Media briefs• News Clippings• Interviews clips• E – Boards
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Media Briefs, Press Clippings and e-boards (for live interviews)
40
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
Items (SO3)
1. Indicator title
Guide
Number of credit bureaus investigated and appropriate enforcement action taken where necessary
2. Short de�nition Indicator seeks to assess the e�ectiveness of the implemented enforcement strategy. To ensure successful enforcement throughout the whole NCR
3. Purpose/importance To ensure co-ordinated and successful enforcement of the NCA by using all remedies provided by the NCA against both registrants and non-registrants who contravene NCA.
4. Source/collection of data • Investigation reports • Tribunal/Court applications and affidavits • Tribunal/Court judgments/orders• Investigation database • Media reports
Guide
6. Data limitations Resources – capacity and expertise Tribunal and Tribunal rules National O�ce enforcing country-wide
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Investigations and Enforcement
Items (SO3) Guide
7. Type of indicator Output8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
1. Indicator title Number of credit bureaus audited reports reviewed and appropriate corrective action taken where necessary
2. Short de�nition The indicator seeks to highlight non compliances identi�ed by the auditors
3. Purpose/importance To decrease the levels of non-compliance with provisions of the Act.
4. Source/collection of data • Annual Compliance Reports• Audit reports
6. Data limitations Resources and capacity
5. Method of calculation • Received credit bureaus audited reports• Received completed Annual Compliance Reports from credit bureaus• Referral memos to investigations department• Compliance notices issued and inspection certificates received.
12. Indicator responsibility Manager: Compliance
41
Items (SO4) Guide
1. Indicator title SDIP approved and implemented
2. Short de�nition The indicator seeks to improve the operational e�ciency of the NCR
3. Purpose/importance To improve service delivery
4. Source/collection of data Report from the systems
5. Method of calculation Signed SDIP document
6. Data limitations • Capacity• Resources (ICT systems)
7. Type of indicator Output
8. Calculation type N/A
10. New indicator New
9. Reporting cycle Quarterly reports
11. Desired performance To ensure e�ective and e�cient service delivery
12. Indicator responsibility Manager: Complaints
Items (SO4)
1. Indicator title
Guide
Percentage of uptime availability of the ICT system
2. Short de�nition The indicator seeks to highlight the system availability rate to improve operational e�ciency
3. Purpose/importance To assess the down time and uptime availability of the system
5. Method of calculation ICT network monitoring report (Registrations and Complaints ICT system)
6. Data limitations • Non commitment of service provider, stakeholders and/or users.• Out-dated ICT hardware• Capacity
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Chief Financial O�cer
4. Source/collection of data Report from the systems
42
Items (SO5)
1. Indicator title
Guide
Number of workshops conducted with relevant stakeholders on NCAA
2. Short de�nition A report on workshops conducted for stakeholders
3. Purpose/importance To educate and create public awareness to consumers on the amendments of the Act through workshops
5. Method of calculation Attendance registers
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Invites for workshops, Registers for workshops conducted and emails from organisers for exhibitions or larger workshops.
Items (SO5)
1. Indicator title
Guide
Number of multimedia awareness campaigns (radio/TV/interviews/news print) conducted on NCAA
2. Short de�nition A report on a number of multimedia awareness campaigns conducted on amendments of the Act
3. Purpose/importance To educate and create public awareness for consumers on the amendments of the Act through multimedia awareness campaigns
5. Method of calculation • Media briefs• News Clippings• Interviews clips• E – Boards
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Media Briefs, Press Clippings and e-boards (for live interviews)
43
Items (SO5) Guide
1. Indicator title Number of special investigations conducted and appropriate enforcement action taken where necessary
2. Short de�nition Investigations on various unregistered credit providers operating in a particular province.
3. Purpose/importance To combat the granting of credit by unregistered credit providers
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To enhance NCR’s e�ectiveness in enforcing the NCA
12. Indicator responsibility Manager: Investigations & Enforcement
4. Source/collection of data Implementation of the amendments by various NCR departments.
Items (SO5) Guide
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
1. Indicator title Number of outreach programmes and exhibitions (mall activations/ Outside Broadcast/ Road shows/ Imbizos) conducted on NCAA
2. Short de�nition A report on a number of outreach programmes and exhibitions conducted on amendments to the Act
3. Purpose/importance To educate and create awareness for consumers on the amendments of the Act
5. Method of calculation Attendance registers
4. Source/collection of data Invitation of the outreach and/or email from the organiser
44
Notes
Notes
Five YearStrategic Plan
2016/17-2020/21
O�cial sign-o�It is hereby certi�ed that this Strategic Plan:
Was developed by the management of the National Credit Regulator under the guidance of Ms Motshegare, who is the CEO and
Accounting Authority.
Takes into account all relevant policies, legislation and other mandates for which the National Credit Regulator is responsible.
Accurately re�ects the strategic outcome oriented goals and objectives which the National Credit Regulator will endeavour to
achieve over the period 2016/2017 – 2020/2021.
Signature:
Ms. Ayanda Mafuleka
Chief Financial O�cer
Signature:
Mr. Obed Tongoane
Deputy Chief Executive O�cer
Recommeded for approval by:
Signature:
Ms. Nomsa Motshegare
Chief Executive O�cer and Accounting Authority
Table of Contents1. Foreword by the Minister 50
2. Overview by the Accounting Authority 51
3. Strategic Overview 54
3.1. Vision 54
3.2. Mission 54
3.3. Values 54
3.4. Legislative and other mandates including constitutional mandates 54
3.5. Strategic Outcome Oriented Goals 55
3.6. Strategic Objectives 55
3.7. The dti key strategic focus areas 56
4. Situational analysis 56
State of the Credit Market
4.1. Performance Delivery Environment (external) 57
a) Uncertainty in the regulatory framework 57
b) Increasing complexity and sophistication 57
c) Stakeholder management 57
d) Challenges faced by the NCR 57
4.2. Organisational Delivery Environment (internal) 58
a) Processes, system and structure renewal 58
b) Human Capital 58
c) Knowledge intensity 58
4.3. Description of the Planning Process 58
5. Services
6. Key programmes aligned to the dti’s priorities 58
7. Financial Plan 60
7.1. Projections of revenue, expenditure and borrowings 60
7.2. Asset and liability management 61
7.3. Cash �ow projections 61
7.4. Capital expenditure projects 61
7.5. Infrastructure Plans 61
56
58
7.6. Dividend policies 61
8. Governance 62
9. Links to other plans 63
9.1. Strategic Risk Register 63
9.2. Fraud Prevention Plan 65
9.3. Materiality Signi�cance Framework 66
Annexure: Indicator Pro�les 67
AbbreviationsADR - Alternative Dispute Resolution
CCMR - Consumer Credit Market Report
CEO - Chief Executive O�cer
CFO - Chief Financial O�cer
COTII - Council of Trade and Industry Institutions
DCEO - Deputy Chief Executive O�cer
dti - Department of Trade & Industry
DPSA - Department of Public Service Administration
EXCO - Executive Committee
FIN - Finance
HR - Human Resources
ICT - Information Communication Technology
MICT SETA - Media Information and Communication Technologies Sector Education
and Training Authority
NCA - National Credit Act
NCAA - National Credit Amendment Act
NCR - National Credit Regulator
NCT - National Consumer Tribunal
PDA - Payment Distribution Agents
NDP - National Development Plan
PFMA - Public Finance Management Act
SADC - Southern African Development Community
SCM - Supply Chain Management
SDIP - Service Delivery Improvement Plan
W&RSETA - Wholesale and Retail Sector Education and Training Authority
De�nitions used to measure performanceE�ective - Successful in producing a desired or intended result
Enhance - Improve the quality of performance
Support - To give assistance
Facilitate - To make an action or process easier
50 50
1. Foreword by the MinisterThe National Credit Regulator (NCR) is established in terms of the National Credit Act No 34 of 2005 (the Act). It commenced operations in 2006. The Act was amended in 2014 (Act No.19 of 2014) and the Regulations pertaining to the Act as amended became e�ective in March 2015, except for the A�ordability Assessment Regulations which became enforceable in September 2015.
As a result of the above Regulations, the NCR is expected to focus on a number of key policy areas. These include monitoring compliance with: registration by new entrants, that is, small credit providers, payment distribution agents and alternative dispute resolution agents; Regulations relating to the collection and sale of prescribed debt; and the implementation of the A�ordability Assessment Regulations. In instances of contraventions, relevant enforcement action must be taken.
An additional key policy area the NCR must focus on, is to monitor the e�ect of the cost of credit and credit life insurance on consumers.
In the past year, the NCR embarked on various campaigns in an e�ort to raise consumer awareness and educate consumers in terms of their rights and obligations in terms of the Act as amended. This must continue, especially in predatory and deceptive advertisements where consumers are lured to take on credit with high interest rates. Consumers must also be made aware that they need to be honest in disclosing their �nancial obligations in full to credit providers for proper a�ordability assessments to be conducted.
The NCR’s achievements of its targets in the past years, and especially the last �nancial year are praiseworthy. In the 2014/15 �nancial year, the entity obtained an unquali�ed audit opinion with no matters of emphasis (clean audit).
For the three quarters up to 31 December 2015, the NCR achieved about 85% of its targets. Promoting public awareness on consumer credit matters with the aim of reaching across a broad range of consumers with varying needs, especially the vulnerable sectors of our communities is high on NCR’s agenda. Outreach programmes in the form of “Imbizos” were conducted in rural areas in the Free State, KwaZulu-Natal and Limpopo Provinces. The target audience were pensioners and self-employed people. In their proactive investigations, the NCR has mounted pressure on retailers to root out undesirable credit practices by selling unemployment insurance to consumers and levying unlawful fees that add to the indebtedness of consumers (for example, club fees).
A number of these matters and others which relate to various contraventions of the Act have been referred to the National Consumer Tribunal.
I am optimistic about the positive role that the NCR will continue to play in e�ectively regulating the consumer credit industry and protecting consumers. NCR is well on course to improve its performance with appropriate strategies and e�ective implementation of the Act as amended.
I am therefore pleased to release the NCR’s 3-year Annual Performance Plan for 2016-2019 and the 5-year Strategic Plan for 2016-2021 which set out in detail how objectives will be met with the continued support of the dti.
Dr Rob Davies, MPMinister of Trade and Industry
51
2. Overview by the Accounting AuthorityAs we recognise the challenging current economic climate in
the country, the National Credit Regulator (NCR) has made
tremendous inroads in making a di�erence in the lives of
South African citizens, especially the vulnerable sector of
society by e�ectively regulating the consumer credit industry.
The priorities of the NCR are aligned with the Key Policy Areas
of the Department of Trade and Industry (dti). These focus
areas re�ect the NCR’s vision of promoting a South African
consumer credit market which is fair, transparent, accessible
and contributing to South Africa’s socio-economic
development.
The NCR operates under the ambit of the National Credit Act
No 34 of 2005 (the Act). The Act was amended in 2014 (Act No.
19 of 2014) and most of the Regulations pertaining to the Act
as amended became e�ective in March 2015, with the
exception of the A�ordability Assessment Regulations which
came into force in September 2015.
A high level situational analysis conducted identi�ed trends in
the developments that are likely to in�uence the consumer
credit industry and impact the NCR over a period of time. The
factors impacting on the regulatory environment include the
following:
The state of the credit market: - The following were some of the
most signi�cant trends in terms of credit granted for the
quarter ended September 2015: the value of new mortgage
loans granted increased by R2.50 billion (6.77%) year-on-year;
secured credit, which is dominated by vehicle �nance,
increased by R2.80 billion (7.68%) year-on-year; and unsecured
credit increased by R2.42 billion (13.28%) year-on year.
The total outstanding consumer credit balances (gross
debtor’s book) as at September 2015 was R1.63 trillion, an
increase of 4.09% year-on-year.
About 23.45 million credit-active consumers were recorded on
the credit bureau records for the quarter ended September
2015. This is an increase of 4.2% when compared to the 22.50
million in September 2014. Consumers classi�ed in good
standing increased by 1.08 million year-on-year, to 13.53
million consumers in September 2015. As a percentage of the
total number of credit-active consumers at 57.7%, this re�ects
an increase of 2.4% year-on-year.
The number of consumers with impaired records has
decreased by 138 000 year-on-year, from 10.05 million in
September 2014, to 9.91 million in September 2015. The
number of accounts increased from 81.18 million in
September 2014 to 80.60 million for the quarter ended
September 2015. The number of impaired accounts decreased
from 21.64 million to 20.24 million when compared to
September 2014, a decrease of 1.40 million year-on-year.
Stakeholder management-: the NCR established a Credit
Industry Forum to address challenges relating to the
implementation of the Act. The forum meets quarterly and is
chaired by the NCR. Representation on the forum includes the
Banking Association of South Africa, the Micro Finance South
Africa, Debt Counselling Associations, Payment Distribution
Association of South Africa, Credit Bureau Association and
Consumer representatives. Regular meetings are also held
with large credit providers individually to discuss regulatory
issues.
The NCR also engages on a regular basis with other local
regulators such as the South African Reserve Bank and the
Financial Services Board to cooperate on regulatory matters
and to share information in respect of investigations relating to
entities that are regulated by these regulators.
The NCR participates in quarterly regulatory cluster meetings
of the Council of Trade and Industry Institutions (COTII) which
facilitate sharing of information and pulling resources to work
together as regulators. These meetings are chaired by the dti.
The members of the COTII are regulators and consumer
tribunals that report to the dti.
We continue to host regulators from the Southern African
Development Community (SADC) region to share information
on the work of the NCR. The countries from the region that
have visited the NCR to date include Swaziland, Namibia,
Botswana, Uganda and Tanzania.
Consumer Education:- In terms of consumer education and
communication, the main activities that stand out include the
involvement of the NCR in a project initiated by the
Department of Public Service and Administration (DPSA) to
develop and implement a debt relief programme to relieve
government employees of high indebtedness levels. This
relationship is to be formalised in a form of a Memorandum of
Understanding.
The NCR also conducted the “Know your credit status”
campaigns jointly with credit bureaus at shopping centres,
52 52
o�ces of the dti and the South African Revenue Services.
The NCR working jointly with local Tribal Authorities in rural
areas of the Free State, Limpopo, and KwaZulu-Natal Provinces,
conducted outreach programmes (“Imbizos”) aimed at mainly
pensioners and self employed people to create awareness
relating to undesirable practices of credit providers, especially
retailers.
Investigations:- During its investigations, the NCR discovered
that some of the retailers sold retrenchment and occupational
disability covers to pensioners and consumers receiving
government social grants such as old age, disability, foster care
and child support grants; and charged most of these
consumers a club fee which is not permitted in terms of the
Act.
The sale of retrenchment and occupational disability covers to
pensioners and consumers receiving government social grants
is unreasonable and imposes an unreasonable cost to such
consumers because they cannot claim bene�ts under these
covers.
The NCR also found that in some instances consumers
receiving disability grants from the government on account of
their permanent disability were sold occupational disability
cover at a time when they were already certi�ed permanently
disabled.
Entities found to have engaged in the abovementioned
practices were referred to the National Consumer Tribunal
(NCT) for appropriate sanctions.
Nineteen (19) matters involving credit providers (retailers,
banks, and other credit providers) were referred to the NCT
between April 2015 and September 2015. Contraventions
uncovered include over-charging of credit life insurance,
reckless lending, obtaining judgments in incorrect
jurisdictions, overcharging of fees, misleading advertisements
and others.
The enforcement of the Act is one of the key functions of the
NCR. In carrying out enforcement, the NCR conducts reactive
and proactive investigations. Reactive investigations are
informed by complaints from consumers, trends identi�ed in
the media, referrals from other institutions and on-site
compliance visits while proactive investigations target speci�c
areas following extensive information gathering.
Clean Audit Opinion: - As a result of the prudent �nancial
management and corporate governance practiced, the NCR
obtained an unquali�ed Audit Opinion without matters of
emphasis (Clean Audit) for the �nancial year 2014/15. There
were no �ndings on compliance, supply chain management
and performance information.
We recognise the �nancial challenges encountered to
implement the planned strategic activities. To achieve the
long-term goals, we will need to harness the experience and
expertise accumulated over the years.
The NCR has continuously been focusing on measures to cut
operational costs to deal with funding challenges. For
example, some of the work that was outsourced has been
internalised by providing extensive training to sta�. At the
same time, measures to supplement income have also been
identi�ed. These include proposals to increase registration fees
which have been submitted to the dti. The fee regulations have
been published by the dti.
The NCR is committed to good governance practices. The
responsibilities of the Accounting Authority vest in the Chief
Executive O�cer. An Audit and Risk Management Committee
(ARMC) is constituted in terms of the PFMA and Treasury
Regulations. The Internal Audit function is outsourced and
reports to the ARMC. The ARMC meets at least four times a
year.
The actions of the NCR have been e�ective in dealing with the
challenges as we see them today, but more work needs to be
done and �exibility coupled with creativity is going to become
crucial. The organisation has been working smartly to achieve
most of the objectives it set out to meet. By the end of
September 2015, about 85% of the targets had been either
achieved or exceeded.
For the 2016/17 �nancial year and as a result of the
Amendments and Regulations, key policy areas that the NCR
would focus on are the following: Monitoring compliance with
registration requirements - registration by new entrants, that
is, small credit providers, payment distribution agents, and
alternative dispute resolution agents; Regulations relating to
the collection and sale of prescribed debt; and
Implementation of the A�ordability Assessment Regulations.
In instances of contraventions, relevant enforcement action
will be taken.
5353
The NCR will also focus on monitoring the e�ect of the cost of
credit and credit life insurance on consumers.
We have aligned the key performance areas with the strategic
objectives and core themes of the dti. The vision and mission
are articulated through strategic goals. Measurable
performance indicators as well as an analysis of external and
internal factors that could a�ect the ability to achieve our goals
are indicated. Strategic risks, which we could be exposed to, as
well as possible mitigating controls, are also identi�ed. The
strategic thrusts driving the plan include: - To promote
responsible credit granting, To protect consumers from abuse
and unfair practices in the consumer credit market and
address over indebtedness; To enhance the quality and
accuracy of credit bureau information; To monitor and improve
NCR’s operational e�ectiveness; and ensure e�ective
implementation of the National Credit Act as amended.
I would like to warmly thank the NCR Executive Team,
Management and Personnel for their contribution in building a
sustainable consumer credit market and the development of
South Africa. The important lessons captured each year
prepare us to take on new challenges in the years to come. The
organisational performance ultimately depends on the
continued dedication and hard work of our employees, to
whom I personally express appreciation for their enthusiasm
while encouraging sustained service with integrity, dedication
and professionalism.
Furthermore, it is important to continue collaboration with our
key stakeholders, and in particular the dti, in spearheading
socio-economic development. As we proceed on this journey,
the unwavering and continued support of the Honourable
Minister, the dti and Parliament will be of importance to assist
us to build on our strength through our ability to adapt and
respond quickly to changes and developing trends in the
consumer credit market.
The NCR will strive to improve its e�ectiveness in the
implementation of the Act and protection of consumers. I am
grateful to the Honourable Members of the Portfolio
Committee on Trade & Industry, Honourable Members of the
Select Committee on Trade and International Relations, the
Honourable Minister of Trade and Industry, Dr Rob Davies,
Director-General, Mr Lionel October, the Group Chief
Operations O�cer, Ms Jodi Scholtz, Deputy Director-General,
Ms Zodwa Ntuli and the Acting Deputy Director-General, Mr
MacDonald Netshitenzhe for their continued support and
guidance in terms of regulating the consumer credit industry.
I would also like to extend my sincere appreciation to the
Members of the Audit & Risk Management Committee for their
support and guidance.
Ms Nomsa Motshegare
Chief Executive O�cer and Accounting Authority
3. Strategic OverviewThis section describes the vision, mission, values, strategic goals and objectives of the National Credit Regulator (NCR). Further-more, it provides an overview of the products and services, recent court rulings and an environmental scan of the key develop-ments likely to in�uence the work of the NCR.
3.1 Vision
The vision of the NCR is:
To promote a South African consumer credit market that is fair, transparent, accessible and dynamic.
3.2 Mission
The mission of the NCR is:
To support the social and economic advancement of South Africa, by:– • regulating for a fair and non-discriminatory market for access to consumer credit; and • promoting responsible credit granting, use and effective redress.
3.3 Values
The values of the NCR are:
Service Excellence We strive for service excellence that exceeds the expectations of all stakeholders.
Integrity We are committed to honesty and integrity without compromise.
Empowerment We strive for empowerment in the consumer credit market and we are also committed to employee empowerment.
Good Corporate Governance We strive to be a model of good corporate governance at all times.
3.4 Legislative and other mandates including constitutional mandates
The legislative mandate of the NCR is as follows:
• To promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit improved standards for consumer information; • To prohibit certain unfair credit and credit market practices; • To promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; • To provide for debt re-organisation in cases of over-indebtedness; • To regulate credit information; and • To promote a consistent enforcement framework relating to consumer credit.
54
3.5 Strategic Outcome Orientated Goals
The NCR has six strategic outcome orientated goals. These are aligned to its �ve strategic objectives.
3.6 Strategic Objectives
1. To promote responsible credit granting. 2. To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness. 3. To enhance the quality and accuracy of credit bureau information. 4. To monitor and improve NCR’s operational e�ectiveness. 5. To ensure e�ective implementation of the National Credit Amendment Act (NCAA).
55National Credit Regulator - 5 Year-Strategic Plan 2016/17 - 2020/21
The strategic objectives the NCR pursues are as follows:
Programme 1 To promote responsible credit granting
Programme statement The purpose of this programme is to reduce levels of consumer over-indebtedness by:(a) Educating credit providers and monitoring their compliance with the regulations; and(b) Enforcing compliance with the regulations.
Description of the programme Workshops and compliance monitoring visits will be conducted in order to assist credit providers to comply with a�ordability assessment regulations and cost of credit.
Baseline *Seven (7) workshops conducted on a�ordability assessment regulations. Seven (7) provinces visited to monitor credit provider compliance, �fteen (15) investigations conducted appropriate enforcement action taken on non-compliant credit providers where necessary, 15 investigations conducted and appropriate enforcement action taken where necessary.
Programme 2
Programme statement The purpose of this programme is to decrease the practice of reckless lending by credit providers. This will be implemented by conducting investigations and taking enforcement action on non-compliant credit providers
Description of the programme Investigations will be conducted proactively and reactively by the NCR. Complaints reports that are lodged by consumers and reports of non-compliance reported by Accounting O�cers and Auditors will be investigated through reactive mechanisms. Appropriate enforcement action will be taken where necessary.
Baseline *Forty (40) credit providers investigated and appropriate enforcement action taken where necessary.
To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.
Programme 3
Programme statement The purpose of this programme is to increase compliance by credit bureaus through compliance monitoring and investigations and by taking appropriate enforcement action where necessary.
Description of the programme Investigations and compliance monitoring will be conducted proactively by the NCR. Complaints that are lodged by the consumers will be investigated through reactive mechanisms. Based on the outcome of the investigations, appropriate enforcement action will be taken where necessary.
To enhance the quality and accuracy of credit bureau information.
*Based on the estimated annual performance targets for 2015/16 �nancial year
3.7 The dti key strategic focus areas
• To facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth;• To create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner; and • To promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures e�ective and e�cient service delivery.
Baseline *2 credit bureaus investigated and appropriate enforcement action taken where necessary. All registered credit bureaus audited reports reviewed and appropriate corrective action taken where necessary.
Programme 4
Programme statement The purpose of this programme is to improve the NCR’s operational e�ciency and service delivery
Description of the programme This will be done through continuous improvement of the ICT systems, and the development and implementation for the Service Delivery Improvement Plan (SDIP).
Baseline *95% uptime of the ICT system
To monitor and improve NCR’s operational e�ectiveness.
56
Programme 5
Programme statement The purpose of this programme is to ensure improved compliance with the regulations and increased consumer protection.
Description of the programme Implementation will be done through awareness campaigns, improved compliance through compliance monitoring, investigations and appropriate enforcement action will be taken where necessary.
Baseline *40 workshops with relevant stakeholders were conducted, 40 of any of the following: Radio, TV, interviews and news print conducted, 8 of any of the following: mall activations/ exhibitions/ OB/ Road shows/ Imbizos in peri urban and rural areas. Special investigations in the form of raids in three (3) provinces conducted and appropriate enforcement action where necessary.
To ensure e�ective implementation of the National Credit Amendment Act (NCAA)
*Based on the estimated annual performance targets for 2015/16 �nancial year
4. Situational Analysis
A high-level assessment was undertaken to identify the most
signi�cant developments in the external and internal
environment that are likely to in�uence or impact the NCR over
the next several years. First, a brief synopsis of the state of the
credit market is provided and thereafter, the analysis of the
internal and external factors impacting on the NCR.
State of the Credit Market
The total value of credit granted for the twelve months ending
September 2015 amounted to R461.42 billion compared to
R441.64 billion for the same period in 2014. The value of the
outstanding debtors’ book increased by R64.19 billion (4.09%)
for the quarter ended September 2015, when compared to the
quarter ended September 2014.
The value of the debtors book at the end of September 2015 was R1.63 trillion consisting of 41.29 million accounts. For the quarter ended September 2015, the total Rand value of new credit granted was R123.93 billion, with mortgages comprising R39.39 billion (31.78%). Unsecured Credit increased by 13.28% from R18.23 billion for the quarter ended September 2014 to R20.66 billion for the quarter ended September 2015.
Applications for registration of credit providers have stabilised. A total of 4 885 credit providers with 49 941 branches, 14 Credit Bureaus and 2314 debt counsellors are now registered with the NCR. As at September 2015, about 740 500 consumers applied to be under debt review and an estimated 408 976 cases remain under “active” debt review.
57
The Total PDA distributions to credit providers from April 2015 to December 2015 was R4.9 billion. These are funds collected by PDAs from consumers under debt review.
4.1 Performance Delivery Environment (external)
The following external developments were identi�ed as the key trends or issues that are likely to a�ect the work of the NCR:
a) Uncertainty in the regulatory framework
Regulatory uncertainty creates inconsistent application of the legislation resulting in undesirable outcomes that have a negative impact on the credit market. It also leads to interpretation problems which impede regulatory certainty.
Decisions of the courts and National Consumer Tribunal have also created uncertainty in the regulatory framework when interpreting the National Credit Act. Some of the decisions for example are inconsistent with the overall purpose of the legislation.
The NCR has worked closely with the dti to close the gaps that exist currently in the legislation through the National Credit Amendment Act No.19 of 2014 and its regulations such as, A�ordability Assessment, Credit Life Insurance and Interest Rate Caps.
In addition, the NCR is empowered to issue guidelines to the industry to provide guidance on the interpretation and application of the Act as amended.
b) Increasing complexity and sophistication
The evolution of the credit market has come with innovation by the industry. This has increased the levels of complexity and sophistication in the market.
The emergence of on-line and social lending in South Africa has brought new regulatory challenges for the NCR. As a regulator, the NCR must be adept to the new challenges to ensure consumer protection.
The NCR is also closely monitoring the introduction of the new credit products and the advertising methods of credit providers in order to curb the luring of consumers into debt traps. This in turn requires improved product knowledge and understanding by the NCR to be able to monitor their compliance with legislation e�ectively.
c) Stakeholder management
The approach of the NCR towards stakeholder management is to facilitate open discussion and engagement with the industry and other stakeholders. E�orts are being made to achieve this objective while avoiding regulatory capture by the industry.
The NCR has established the Credit Industry Forum which serves as a platform for the NCR and industry to engage and reach agreement on industry issues. The forum represents all industry players and consumers. It plays an important role in resolving operational problems on the implementation of the legislation.
The NCR is a member of the African Consumer Protection Dialogue which is facilitated by the Federal Trade Commission of the United States. This forum brings together regulators from all over the African continent to discuss consumer protection issues and share information. A formal structure for information sharing and collaboration is being explored in this forum.
The NCR also holds regular meetings with industry associations, registrants and magistrates. On-going meetings are also held with local and foreign investors as well as local �nancial institutions and other regulators including the Reserve Bank of South Africa.
The NCR has also established networks with other regulators in the SADC region, North America and the United Kingdom. More relationships will be established with other regulators across the globe.
d) Challenges faced by the NCR
The main challenge of the NCR is funding. The NCR requires additional funding for new premises to accommodate its growing sta� complement and increase sta� capacity. In addition, funding is required for compliance monitoring, consumer education, conducting workshops and enforcement.
The NCR continues to �nd creative ways to augment its budget in order to be able to execute its legislative mandate. These include, but not limited to, requesting the dti to issue regulations increasing registration fees.
4.2 Organisational Delivery Environment (internal)
The following internal developments were identi�ed as the key issues that are likely to a�ect the work of the NCR:
a) Processes, system and structure renewal
A new human resource management system and a performance management system have been introduced.
b) Human Capital
The NCR is focusing on sta� issues and ensures that sta� morale remains high. There is a learneship programme in which �fteen (15) graduates were recruited and trained with the hope of providing additional capacity to the NCR. This is a joint project between the NCR, the WRSETA and MICSETA. The NCR has been running the learnership programme since 2011.
c) Knowledge intensity
The NCR is expected to provide guidance to stakeholders on the developments and trends in the credit market. This is achieved through measures such as issuing public notices, capacity building workshops, media statements, radio and TV interviews, outreach programmes (Imbizos) and others.
In addition, the NCR also publishes statistics on a quarterly basis on the level and nature of consumer indebtedness.Management engages with their respective team members to develop operational objectives which are in line with the business plan of the organisation. Upon approval of the strategic and operational objectives, all employees including executive management conclude performance contracts with their respective team members.
4.3 Description of the Planning Process
The �rst stage begins with the Executive Committee initiating the planning process with the aim of creating the organisational strategic direction. Workshops are then held between executive members and the management team to develop the departmental operational objectives.
Management engages with their respective team members to develop operational objectives which are in line with the business plan of the organisation. Upon approval of the strategic and operational objectives, all employees including executive management conclude performance contracts with their respective team members.
5. ServicesThe NCR renders the following services, in accordance with the requirements of the NCA.
• Register credit providers, credit bureaus, PDAs, ADRs and debt counsellors, and monitor their compliance with the Act. • Educate and create awareness of the protection that the NCA offers; • Research the credit market and its trends, monitor access to credit and the cost of credit to identify factors that may unde mine access to credit, competitiveness in the credit market and consumer protection; • Advise government on policy and legislation; • Receive and investigate complaints and ensure that consumer rights are protected; and • Enforce the NCA and take action against contravening entities.
6. Key Programmes Aligned to dti’s prioritiesIn addition to the external and internal environmental trends and issues, the need to ensure strategic alignment to priorities of government was taken into account in formulating the strategic priorities of the NCR. Government has committed itself to achieving twelve (12) outcomes.
The dti, as the NCR’s line ministry, plays a pivotal role in ensuring the achievement of Outcome 4 – Decent Employment through Inclusive Growth. A stable and e�cient �nancial sector, of which the consumer credit market is a critical component, is vital for ensuring inclusive growth and employment creation. Thus, the activities of the NCR are most closely associated with contributing to Outcome 4.
58
The dti strategic objectives and NCR outcomes
dti Objectives NCR Objectives NCR Outcomes
Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth:-
• To promote responsible credit granting.• To enhance the quality and accuracy of credit bureau information.
• Reduced levels of over-indebtedness.• Affordable levels of credit promoted.• Improved consumer credit information.
Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner:-
• To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.• To ensure effective implementation of the National Credit Amendment Act (NCAA).
• Decreased levels of reckless lending practices.• Improved compliance with regulations and consumer protection.• Improved and effective regulation.
Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures e�ective and e�cient service delivery:-
• To monitor and improve NCR’s operational e�ectiveness.
E�cient service delivery.
59
60
7. Financial Plan
7.2 Asset and Liability Management
In terms of section 51(1)(c) of the PFMA, the Accounting Authority is responsible for the management, including the safeguarding, of the assets and the management of the revenue, expenditure and liabilities of the public entity. Within the NCR, the Asset Management Policy provides for the acquisition of assets when the need arises. Procurement processes are in line with legislative requirements as well as the NCR’s supply chain management policy. In addition, assets are e�ectively maintained and when required, disposed of in line with the requirements of the PFMA.
Financial planning and discipline are a key success factor for the NCR. With the limited �nancial resources, and the need to regulate the credit industry and enforce the NCA, it is imperative for the NCR to optimise the available funding.
This section provides an overview of the projected revenue, expenditure and cash �ow requirements over the three year period. In addition, the NCR’s assets and management strategy is provided, as well as the capital expenditure projections.
7.1 Projections of revenue, expenditure, borrowings and capex
The following table provides a summary of the NCR’s projected �nancial plan for the �ve year period
Operational expenditure
Personnel costs
Administration costs
Professional/Programme costs
Total operational expenditure
Capital expenditure
Fixed assets
ICT operational system
Total capital expenditure
TOTAL EXPENDITURE
Income
Fees from registrants
Transfers from DTI
Interest
Other income
Additional Funding from DTI
TOTAL INCOME
78,988,539
18,745,941
23,545,823
121,280,303
3,903,303
2,000,000
5,903,303
127,183,606
55,106,606
69,577,000
1,500,000
1,000,000
-
127,183,606
82,924,000
18,521,113
23,752,198
125,197,310
4,020,402
1,500,000
5,520,402
130,717,712
55,161,712
73,056,000
1,500,000
1,000,000
-
130,717,712
87,707,200
18,876,746
24,437,404
130,384,350
4,141,014
1,500,000
5,641,014
136,025,364
56,816,564
76,708,800
1,500,000
1,000,000
-
136,025,364
Year2016-2017
Year2017-2018
Year2018-2019
Year2019-2020
Year2020-2021
91,423,710
19,205,820
25,170,526
135,800,056
4,265,245
1,500,000
5,765,245
141,565,301
58,521,061
80,544,240
1,500,000
1,000,000
-
141,565,301
95,994,896
19,781,995
25,678,053
141,454,943
4,393,202
1,500,000
5,893,202
147,348,145
60,276,693
84,571,452
1,500,000
1,000,000
-
147,348,145
61
7.3 Cash �ow projections
The following table provides a summary of the projected cash�ows
7.5 Infrastructure Plans
The NCR does not have planned infrastructure projects and therefore does not have an infrastructure plan.
7.6 Dividend policies
The NCR is a schedule 3A public entity receiving a transfer payment from the dti. Hence the NCR does not declare dividends.
7.4 Capital expenditure programmes
The NCR’s projected capital expenditure programme for the next �ve years focuses on computer equipment and IT systems upgrade. The capex programme is outlined below:
275,282
908,803
207,018
2,512,200
2,000,000
5,903,303
291,799
846,232
219,439
2,662,932
1,500,000
5,520,402
300,553
871,618
226,022
2,742,820
1,500,000
5,641,014
309,569
897,767
232,804
2,825,105
1,500,000
5,765,245
318,857
924,700
239,788
2,909,858
1,500,000
5,893,202
O�ce Equipment
Computer Equipment
Furniture
Software/licences
ICT operating system
Total
Year2016-2017
Year2017-2018
Year2018-2019
Year2019-2020
Year2020-2021
Cash �ow from operating activities
Cash receipts from applicants and registered entities
Cash paid to suppliers
Cash paid to employees
Cash absorbed by operations before transfers received
Transfer received
Cash �ow absorbed by operations
Finance income
Net cash in�ows from operations activities
Cash �ows from investing activities
Additions to property, plan and equipment
New ICT system Developments, etc
Net cash out�ows from investing activities
Cash �ows from �nancing activities
Net cash in�ows from �nancing activities
Net decrease/increase in cash and cash equivalent
Budget
56,106,606
( 42,291,765 )
( 78,988,539 )
( 65,173,697 )
69,577,000
4,403,303
1,500,000
5,903,303
( 3,903,303 )
( 2,000,000 )
( 5,903,303 )
-
0
Budget
56,161,712
( 42,273,310 )
( 82,924,000 )
( 69,035,599 )
73,056,000
4,020,401
1,500,000
5,520,401
( 4,020,402 )
( 1,500,000 )
( 5,520,402 )
-
0
Budget
57,816,564
( 43,314,150 )
( 87,070,200)
( 72,567,786 )
76,708,800
4,141,014
1,500,000
5,641,014
( 4,141,014 )
( 1,500,000 )
( 5,641,014 )
-
0
Budget
59,521,061
( 44,376,346 )
( 91,423,710 )
( 76,278,995 )
80,544,240
4,265,245
1,500,000
5,765,245
( 4,265,245 )
( 1,500,000 )
( 5,765,245 )
-
0
Budget
61,276,693
( 45,460,048 )
( 95,994,896 )
( 80,178,250 )
84,571,452
4,393,202
1,500,000
5,893,202
( 4,393,202 )
( 1,500,000 )
( 5,893,202 )
-
0
Year2016-2017
Year2017-2018
Year2018-2019
Year2019-2020
Year2020-2021
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8. GovernanceThe NCR is committed to good governance practices. It complies with the precepts of the Public Finance Management Act (PFMA) and with the 2009 King III on Code of Governance Principles for South Africa (King III Code) in so far as the requirements of the Code can be applied to the NCR. Responsibility for ensuring good corporate governance lies with Parliament, the Minister of Trade and Industry and the Accounting Authority.
8.1 Executive Authority
The Minister of Trade and Industry is the Executive Authority of the NCR.
8.2 The Accounting Authority
The responsibilities of the Accounting Authority vests in the Chief Executive O�cer.
9. Links to other plans9.1 Strategic Risk Register
The NCR manages the key strategic risks it faces on a regular basis. The continuous review includes the update of both the strategic and operational risks on a periodic basis.The following table provides a summary of the NCR’s key strategic risks, as well as the control improvement plan to mitigate the risks.
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Risk Name Risk Control ActionInherentImpact
Financial Critical-Monthly variance reports to compare - Budget mid-term reviews and re-allocation of funds;- Approval of budget by EXCO & Audit Committee - Invoicing of all registrants a month before fees are due; - Submissions of additional funding requests to the dti; - Prepared and submitted budget e�ciency plan to the dti; - Provision for bad debt policy in place; - Lapsing of non-paying registrants; and -Raised the challenge with the portfolio committee.
Control improvement action plans 1. Remove registration threshold for credit providers in line with the NCAA. 2. Continue to engage with the dti for additional funding;3. Start the process of registration of PDAs 4. Imposition of penalties for late renewals 5. Issue registration certi�cates annually upon renewal and not once o�; and 6. Review of registration fees;Progress on action plans1. Awaiting publication of the notice by the dti. 2. Ongoing engagements with the dti regarding additional funding continue;3. The registration process for PDAs has commenced;4. A document for imposition of penalties has been drafted;5. A procurement process for the appointment of a service provider to issue window decals has begun; and6. Awaiting publication of the notice by the dti.
Service delivery
- Entered into MOU with Credit Ombud - Regular consumer education campaigns - Regular engagements with provincial a�airs o�ces; - Capacity building workshops; - Ongoing improvement on the IT infrastructure - Ongoing compliance monitoring and enforcement action; - Impact assessment studies; and- Procedure manual for invoice payments in place.
Control improvement action plans1. To develop the service delivery improvement plan;2. Ongoing improvement on IT infrastructure;3. SMS noti�cation for application for registration;4. Bulk noti�cation for registration & renewals;5. Automatic service rating of the call Centre agents;6. Special funding request from the dti for special projects; and7. Obtain approval from the dti to utilise PDA interest for consumer education and litigation.Progress on action plans1. The service delivery improvement plan is being developed for review and �nalisation by EXCO;3 &4 Bulk noti�cation for registration & renewal is in process;5. Automatic service rating of the call centre agents is being developed;6. Awaiting feedback from the dti regarding special funding request; and7. Approval to utilise PDA interest obtained from the dti.
Major
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-Monthly variance reports to compare - Budget mid-term reviews and re-allocation of funds;- Approval of budget by EXCO & Audit Committee - Invoicing of all registrants a month before fees are due; - Submissions of additional funding requests to the dti; - Prepared and submitted budget e�ciency plan to the dti; - Provision for bad debt policy in place; - Lapsing of non-paying registrants; and -Raised the challenge with the portfolio committee.
Control improvement action plans 1. Remove registration threshold for credit providers in line with the NCAA. 2. Continue to engage with the dti for additional funding;3. Start the process of registration of PDAs 4. Imposition of penalties for late renewals 5. Issue registration certi�cates annually upon renewal and not once o�; and 6. Review of registration fees;Progress on action plans1. Awaiting publication of the notice by the dti. 2. Ongoing engagements with the dti regarding additional funding continue;3. The registration process for PDAs has commenced;4. A document for imposition of penalties has been drafted;5. A procurement process for the appointment of a service provider to issue window decals has begun; and6. Awaiting publication of the notice by the dti.
- Entered into MOU with Credit Ombud - Regular consumer education campaigns - Regular engagements with provincial a�airs o�ces; - Capacity building workshops; - Ongoing improvement on the IT infrastructure - Ongoing compliance monitoring and enforcement action; - Impact assessment studies; and- Procedure manual for invoice payments in place.
Risk Name Risk Control ActionInherentImpact
Information Technology
Major- Assessment of the new IT infrastructure and implementation to date; - Amended the audit and risk terms of reference to cater for king 3 requirement on IT governance;- Back-up by Metro�le;- Internal auditors ensure oversight role; - NCR COBIT/King III Governance Implementation plan documented; - Network infrastructure improved; - Additional servers acquired e.g. SAP, Operational system;-Network monitoring tool has been acquired; and - Network �rewall and anti-virus.
Control improvement action plans1. Review of the Business Continuity plan for all critical business applications; 2. Implementation of Control Objectives for Information Technology (COBIT); 3. Implement recommendations of PWC; 4. To implement the ICT disaster recovery plan; and 5. Implement recommendations of the ICT skills audit. Progress on action plans1. Service provider appointed to conduct the review; 2. A key foundation element of COBIT, namely Governance, has been implemented. The ICT Governance Framework was adopted in September 2015; 3. Implementation has commenced;4. Awaiting review of the BCP and additional funding; and5. In process of procuring skills of an ICT manager to address the capacity challenges and ICT sta� will attend Microsoft related training as part of up skilling
Human Resources
Signi�cant- HR policies in place (career development and succession planning policies) - wellness programs in place - learnership programme established - Work place forum established. - Some vacant positions have been and are �lled. - Retention and succession strategy.
Control improvement action plans1. Engagements with the dti for additional funding to continue in order to employ more sta� and obtain new o�ce space; and2.To �nalise the review of other HR policies Progress on action plansHR policies were reviewed by Internal audit. Inputs have been taken into consideration for �nal approval by the Accounting Authority.
Business Continuity
Signi�cant- Risk assessment on security was performed Currently implementing the recommendations of the assessment - Emergency exit ,staircase & �re extinguishers. - Information security policy in place - Insurance cover in place - NCR Security Policy is in place and signed o�. - IT asset register updated, monitored and reviewed regularly. - Supervisor Facilities and Security appointed. - Health and Safety Committee / Disaster Recovery Team established - CCTV surveillance, Electric fence, perimeter lighting, access control and alarm system are in place. - Security scanner in place. - Request for extension for current premises approved until 30 April 2017. - Fire drills are conducted - drainage system in place; -Proper signage in place.
Control improvement action plans1. O�ce space or building to be identi�ed with disability friendliness; 2.Ongoing data encryption for new laptops; 3. Ongoing training for health and safety Committee / Disaster Recovery Team ; 4. Installation of tracking devices for laptops; 5. Ongoing engagement with dti to address the funding challenges; and6 .DRP to be approved.Progress on action plans1. Dependant of funding from the dti;2. data encryption for new laptops is ongoing; and3. Training of the OHS Committee members was conducted in 2015.
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9.2 Fraud Prevention Plan: The NCR Fraud Prevention Plan has been developed within the context of the Risk Management Framework with the aim to reduce fraud to an absolute minimum and e�ect policies and procedures to maintain the risk of fraud within tolerable levels, and preferably zero, at all times.
The Public Finance Management Act, Act No.1 of 1999 (PFMA), as amended, has as its prime objective, to secure transparency, accountability and management of revenue, assets, and liabilities within a spirit of good corporate governance, of the institutions to which the NCA applies. The main objectives of the plan include:
• To create an anti-fraud culture in which countering fraud is the joint responsibility of all stakeholders.
• To ensure that the totality of anti-fraud measures represents the strongest deterrent possible to those perpetrating or considering perpetrating fraud.
• To develop the most e�ective measures to prevent fraud by developing systems with administrative and technical features, which make the NCR less vulnerable to fraud.
• To establish the most e�ective processes to detect fraud by ensuring that departments have the ability to detect e x i s t i n g and new types of fraud e�ectively and timeously and implementing e�ective liaison procedures to ensure that prompt action is taken to minimise losses to the NCR. • To take appropriate legal action and apply realistic sanctions where an investigation reveals fraud by ensuring that there is integration of risk management, ownership of the control environment, investigative and legal skills.
• To use all possible means to seek redress in respect of money and assets lost to fraud, by ensuring that the recovery of defrauded money and assets forms an essential part of our overall strategy, in order to ensure that committing fraud does not pay.
The main principles of the plan are:
• The NCR’s creating a fraud intolerant culture; • Fraud Prevention; • Fraud Detection; • Fraud Investigation; • Appropriate action (e.g. prosecution, disciplinary action, etc) and • Appropriate recovery or the application of sanction.
The Code of Conduct contains the fundamental ethical principles, which sta� members and those who render services to the NCR on a contract basis, must adhere to. The principles are categorised as:
• Professionalism and integrity; • Obligations to stakeholders; and • Conduct in relation to others.
9.3 Materiality Signi�cant Framework
Section interms of
PFMA51(1)(g)
RequirementQuantitative Qualitative
Material & Signi�cance
An accounting authority for a public entity.
Must promptly inform the National Treasury of any new
entity which that public entity intends to establish, or in the
establishment of which it takes the initiative, and allow the
National Treasury a reasonable time to submit its decision
prior to formal establishment.
R1,179,891(2% of total assets at
31/03/15)
Any transaction of this nature that
causes any interest (equity or loans)
to be taken by the public entity in the
company to be established requires
approval from the Executive
Authority irrespective of its
materiality or signi�cance.54(2) Before a public entity concludes any of the following
transactions, the Accounting Authority for the public entity
must promptly and in writing inform the relevant treasury
of the transaction and submit relevant particulars of the
transaction to its Executive Authority for approval of the
transaction:
a) Establishment or participation in the establishment of a
company;
b) Participation in a signi�cant partnership, trust, unincor-
porated joint venture or similar arrangement;
c) Acquisition or disposal of a signi�cant shareholding in a
company;
d) Acquisition or disposal of a signi�cant asset;
e) Commencement or cessation of a signi�cant business
activity; and
f ) A signi�cant change in the nature or extent of its interest
in a signi�cant partnership, trust, unincorporated joint
venture or similar arrangement.
R1,179,891 (2% of total assets at
31/03/15)
Any transaction of this nature that
causes any interest (equity or loans)
to be taken by the public entity in the
company to be established requires
approval from the Executive
Authority irrespective of its
materiality or signi�cance.
Where ownership is control is
a�ected.
All acquisitions/disposals not
included in the NCR’s strategic
plan/budget; and /or
All acquisitions/disposals not in the
ordinary course of the NCR’s
business/mandate.
A business activity that falls outside
of a public entity’s core business
should be regarded as signi�cant. 55(2) The annual report and �nancial statements referred to in
subsection 55(2) must include particulars of:
a) any material losses through criminal conduct and any
irregular expenditure and fruitless and wasteful expendi-
ture that occurred during the �nancial year; and
b) any losses recovered or written-o�.
R1,179,891 (2% of total assets at
31/03/15)
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Items (SO1)
1. Indicator title
Guide
Number of provinces visited to monitor compliance and appropriate enforcement action taken where necessary
2. Short de�nition To monitor non-compliances in di�erent provinces
3. Purpose/importance To combat reckless credit and over-indebtedness
6. Data limitations Incomplete or inaccurate information provided by the credit providers
7. Type of indicator Output
8. Calculation type Percentages and numbers
9. Reporting cycle Quarterly and Annually
10. New indicator Continues without change from previous year
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Compliance
5. Method of calculation • Attendance registers signed by the compliance officers and credit providers visited,• Compliance monitoring reports (provincial visit reports)• Copies of compliance notices issued (signed compliance notices)• Notice of complete filing from the National Consumer Tribunal (NCT)
4. Source/collection of data • To measure the level of affordability among consumers• To monitor the level of compliance by credit providers to the provisions of the Act
Items (SO1) Guide
1. Indicator title Number of investigations conducted to enforce regulations and appropriate enforcement action taken where necessary
2. Short de�nition Enforcement of regulations through investigations
3. Purpose/importance To decrease the levels of non-compliance with provisions of the Act
4. Source/collection of data • Investigation reports• Media reports• Court applications and affidavits• Court judgments/orders
Annexure: Indicator Pro�le
6. Data limitations Resources and capacity
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly and Annually
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
11. Desired performance Improved compliance with the Act and consumer redress
12. Indicator responsibility Manager: Investigations and Enforcement
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5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates.• Investigations reports
Items (SO2)
1. Indicator title
Guide
Number of credit provider’s investigated and appropriate enforcement action taken where necessary
2. Short de�nition To decrease the levels of non-compliance with provisions of the Act.
3. Purpose/importance To combat reckless credit and over-indebtedness.4. Source/collection of data • Investigation reports
• Tribunal/Court applications and affidavits • Tribunal/Court judgments/orders• Investigation database • Media reports
6. Data limitations Resources – capacity and expertise Tribunal and Tribunal rules National O�ce enforcing country-wide
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Investigations and Enforcement
Items (SO2)
1. Indicator title
Guide
Number of multimedia awareness campaigns (radio/TV/interviews/news print) conducted on misleading advertisments
2. Short de�nition A report on a number of multimedia awareness campaigns conducted on the misleading advertisements
3. Purpose/importance To educate and create public awareness for consumers on the amendments of the Act through multimedia awareness campaigns
5. Method of calculation • Media briefs• News Clippings• Interviews clips• E – Boards
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Media Briefs, Press Clippings and e-boards (for live interviews)
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5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
Items (SO3)
1. Indicator title
Guide
Number of credit bureaus investigated and appropriate enforcement action taken where necessary
2. Short de�nition Indicator seeks to assess the e�ectiveness of the implemented enforcement strategy. To ensure successful enforcement throughout the whole NCR
3. Purpose/importance To ensure co-ordinated and successful enforcement of the NCA by using all remedies provided by the NCA against both registrants and non-registrants who contravene NCA.
4. Source/collection of data • Investigation reports • Tribunal/Court applications and affidavits • Tribunal/Court judgments/orders• Investigation database • Media reports
Guide
6. Data limitations Resources – capacity and expertise Tribunal and Tribunal rules National O�ce enforcing country-wide
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Manager: Investigations and Enforcement
Items (SO3) Guide
7. Type of indicator Output8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
1. Indicator title Number of credit bureaus audited reports reviewed and appropriate corrective action taken where necessary
2. Short de�nition The indicator seeks to highlight non compliances identi�ed by the auditors
3. Purpose/importance To decrease the levels of non-compliance with provisions of the Act.
4. Source/collection of data • Annual Compliance Reports• Audit reports
6. Data limitations Resources and capacity
5. Method of calculation • Received credit bureaus audited reports• Received completed Annual Compliance Reports from credit bureaus• Referral memos to investigations department• Compliance notices issued and inspection certificates received.
12. Indicator responsibility Manager: Compliance
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Items (SO4) Guide
1. Indicator title SDIP approved and implemented
2. Short de�nition The indicator seeks to improve the operational e�ciency of the NCR
3. Purpose/importance To improve service delivery
4. Source/collection of data Report from the systems
5. Method of calculation Signed SDIP document
6. Data limitations • Capacity• Resources (ICT systems)
7. Type of indicator Output
8. Calculation type N/A
10. New indicator New
9. Reporting cycle Quarterly reports
11. Desired performance To ensure e�ective and e�cient service delivery
12. Indicator responsibility Manager: Complaints
Items (SO4)
1. Indicator title
Guide
Percentage of uptime availability of the ICT system
2. Short de�nition The indicator seeks to highlight the system availability rate to improve operational e�ciency
3. Purpose/importance To assess the down time and uptime availability of the system
5. Method of calculation ICT network monitoring report (Registrations and Complaints ICT system)
6. Data limitations • Non commitment of service provider, stakeholders and/or users.• Out-dated ICT hardware• Capacity
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year9. Reporting cycle Quarterly and Annually
11. Desired performance Improved compliance with the Act
12. Indicator responsibility Chief Finance O�cer
4. Source/collection of data Report from the systems
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Items (SO5)
1. Indicator title
Guide
Number of workshops conducted with relevant stakeholders on NCAA
2. Short de�nition A report on workshops conducted for stakeholders
3. Purpose/importance To educate and create public awareness to consumers on the amendments of the Act through workshops
5. Method of calculation Attendance registers
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Invites for workshops, Registers for workshops conducted and emails from organisers for exhibitions or larger workshops.
Items (SO5)
1. Indicator title
Guide
Number of multimedia awareness campaigns (radio/TV/interviews/news print) conducted on NCAA
2. Short de�nition A report on a number of multimedia awareness campaigns conducted on amendments of the Act
3. Purpose/importance To educate and create public awareness for consumers on the amendments of the Act through multimedia awareness campaigns
5. Method of calculation • Media briefs• News Clippings• Interviews clips• E – Boards
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
4. Source/collection of data Media Briefs, Press Clippings and e-boards (for live interviews)
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Items (SO5) Guide
1. Indicator title Number of special investigations conducted and appropriate enforcement action taken where necessary
2. Short de�nition Investigations on various unregistered credit providers operating in a particular province.
3. Purpose/importance To combat the granting of credit by unregistered credit providers
5. Method of calculation • Notice of complete filing from the National Consumer Tribunal (NCT)• Copies of compliance notices issued (signed compliance notices)• Inspection certificates• Investigations reports
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To enhance NCR’s e�ectiveness in enforcing the NCA
12. Indicator responsibility Manager: Investigations & Enforcement
4. Source/collection of data Implementation of the amendments by various NCR departments.
Items (SO5) Guide
6. Data limitations Training, capacity and funding
7. Type of indicator Output
8. Calculation type Percentages and numbers
10. New indicator Continues without change from previous year
9. Reporting cycle Quarterly
11. Desired performance To increase the level of public awareness on the NCA
12. Indicator responsibility Manager: Education & Communication
1. Indicator title Number of outreach programmes and exhibitions (mall activations/ Outside Broadcast/ Road shows/ Imbizos) conducted on NCAA
2. Short de�nition A report on a number of outreach programmes and exhibitions conducted on amendments to the Act
3. Purpose/importance To educate and create awareness for consumers on the amendments of the Act
5. Method of calculation Attendance registers
4. Source/collection of data Invitation of the outreach and/or email from the organiser
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Notes
Notes
