Portfolio Committee on Transport

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Portfolio Committee on Transport

Department of Transport

Annual Report 2012/13

Date: 9 October 2013

Section 3: Highlights of 2012/13 Financial Statements

Section 2: Audit Outcomes for 2012/13

Section 4: Human Resource Management & Development

Section 1: Programme PerformanceReport for 2012/13

Contents

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Contents:

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Programme performance for 2012/13

• DoT Outcomes

• Highlights of the performance of the department

• Detailed Performance in 2012/13:• Per outcome • Per programme

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DoT Outcomes

Outcome 1 An effective and integrated infrastructure network that serves as a catalyst for social and economic development

Outcome 2 A transport sector that is safe and secure

Outcome 3 Improved rural access, infrastructure and mobility

Outcome 4 Improved public transport system

Outcome 5 Increased contribution to job creation

Outcome 6 Increased contribution of transport to environmental protection

Highlights of the Performance of the Department in 2012/13

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• The NATMAP Synopsis Report was developed and presented to Cabinet for approval

• Successful refurbishment and upgrade of Mthatha runway.

• The Draft Road Safety Strategy has been completed• The Road Asset Management Policy has been

developed. This will improve in quantifying & analyzing the requirements of the road networks in South Africa

• Funding was made available to 21 Rural District Municipalities to establish Road Asset Management Systems for standardized collection of road inventory data, including condition assessment and traffic data

Highlights of the Performance of the Department in 2012/13 (Continued)

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• The draft Road Accident Benefit Scheme policy has been finalized following consideration of public comments, and the legislative drafters for the no-fault policy/Road Accident Benefit Scheme have been appointed

• Cabinet approved Feasibility study on the PRASA Rolling Stock Renewal Programme

• Gibela Rail Transport Consortium was announced as the preferred bidder for the design, manufacture & supply of the PRASA new rolling stock fleet ( 5 December 2012)

• Draft Green Paper on Rail Policy

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• South Africa passed the Aviation Security Audit conducted by the United States of America (FAA)

• The development of the National Airports Development Plan is progressing as planned, Provinces & other Stakeholders have been successfully consulted

• DoT hosted the International Civil Aviation Day on 7 December 2012, which gave the youth from Rural Areas exposure on career opportunities in civil aviation.

• Two conventions on prevention of pollution by ships (MARPOL Annex iv & vi) have been approved for ratification by Cabinet

• The Inland Waterways Strategy has been introduced to the Small Vessels Committee of stakeholders for adoption


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• Successful progress was made to reduce SELI1 wreck in Blouberg Strand at no cost to the DoT

• Ports of KZN & the Eastern Cape have been successfully audited for security as per ISPS code

• The Diplomatic Conference on the Torrelimonos Convention was successfully held in Cape Town in October 2012. This Conventions seeks to protect the lives of seafarers on fishing vessels, & reduce the number of incidents & fatalities as sea

• The World Maritime Day was successfully hosted in the Eastern Cape, exposing the youth to career opportunities in the Maritime sector


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• The development of integrated public transport systems, including the bus rapid transit networks and taxi empowerment continued

• 6457 taxis were scrapped, in the taxi recapitalization project

• The Public Transport conflict resolution strategy has been developed


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4 Pieces of legislation that were tabled in Parliament:• Road Accident Fund (Transitional Provisions)

Act,2012(Act No.15of 2012• South African Maritime & Aeronautical Search & Rescue

Amendment Bill• Transport Laws & Related Matters Amendment Bill• Merchant Shipping Safe Containers Act 2011(Act No.10

of 2011)


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Detailed Performance in 2012/13 - Per programme

P2 Integrated Transport Planning (ITP)

P3 Rail Transport

P4 Road Transport

P5 Aviation

P6 Maritime

P7 Public Transport


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Programme 02: Integrated Transport Planning (ITP)Sub Programme: Research and Innovation

Key Performance Indicator Target Achieved / Not Achieved Reason

Development of Transport Energy Consumption Framework for climate change mitigation

Conduct a baseline study to ascertain levels of aggregate energy consumption along the major corridors in South Africa

Not Achieved. Work in progress Working with DoE and DEA on alignment

The Energy Consumption Framework will commence in the 2013/14 period as a result of the unforeseen delays of the alignment process between DoE and DoTThe TOR have been developed and approved and steps are underway to appoint a service provider

Development of Transport Greenhouse Gas Inventory

Develop a mitigation strategy to contribute towards the reduction of GHG by 34% as per UNFCCC commitment

Not Achieved. Tier One done but not finished Tier 2 mitigation work.

The GHG alignment process with DEA has been concluded and the project will start in the 2013/14 period. The TOR have been developed and approved

Develop a sustainable transport information portal, accessible at all tiers of government

A sustainable transport information portal Achieved None

Develop a rural accessibility/multi-deprivation index

Accessibility index conducted for 12 rural districts: Alfred Nzo, Amajuba, Amatole, Chris Hani, Joe Gqabi, O.R. Tambo, uGu, uMgungundlovu, uMkhanyakude, uMzinyathi, uThukela, and Zululand

Achieved None

Research on the impact of freight accidents on South Africa’s roads

Discussion document on the impact of freight accidents on South Africa’s roads

Not AchievedThe second round of the bidding process has commenced

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Programme 02: Integrated Transport Planning (ITP)Sub Programme: Research and Innovation

Key Performance Indicator

Target Achieved / Not Achieved Reason

Review of Transport Innovation Research Strategy; and undertake a study on main technologies and innovations to reduce accidents on roads in South Africa

Reviewed Transport Innovation Research Strategy

Not Achieved. ReprioritisedReprioritised

Development of a Transport Sector Monitoring & Evaluation Framework

Development of an internal M&E discussion documentFinal M&E Framework developed

Achieved None

Compilation of a Transport Sector Policy M&E Report for 2013/14

Approve M&E Framework and data collection Not Achieved. Coordination

with DPME on a government wide framework

Coordination with the DPME and the new framework.


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Macro Sector Planning


Target Achieved / Not Achieved

Reason

Approved NATMAP 2050 by Cabinet

Approval of the NATMAP by Cabinet by May 2012

Synopsis report finalisedAs part of preparations to obtain Cabinet approval, NATMAP was presented to the Infrastructure Development Cluster

The need to align the NATMAP with the Rail Policy resulted in further delays with regard to seeking Cabinet approval. This resulted in further engagements

Updated Transport Master Planning Framework

Monitor and review trends and projections for Macro Planning in Eastern Cape, North West, Northern Cape, Free State and Mpumalanga by March 2013

Not AchievedProvinces were reluctant to proceed with the update of the Framework before it was approved by Cabinet

Consolidate Transport System Data Bank User Requirements Framework

Produce a user requirements framework report by March 2013

User requirements were done.

Internal consultation processes leading to the appointment of service provider took longer than anticipated


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Macro Sector Planning



Reason

National Transport Planning Forum established

Establish National Transport Forum by March 2013

Not Achieved. Provincial consultations and structures were done

Provincial consultative structures were established but not the national structure

Integrated Transport Plan (ITP) minimum requirements reviewed and aligned with the NLTA

Produce a draft report on the review of the ITP minimum requirements for alignment with the NLTA by 2013

Not Achieved Delayed by intersphere coordination matters and mandate reconfiguration.

Developed National Transport Infrastructure Planning Draft Bill

Submit the draft Bill before Parliament by March 2013

Not Achieved. The development of decision support tool, the Policy Framework, was necessary as the first step in justifying the need if any, for the development of the Bill


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Freight Logistics



Reason

Develop Logistics Hubs Framework by March 2013

Coordination of critical freight transport warehouses to support logistics hubs and spokes facilities

Not Achieved. Draft framework

Consultaionwith provinces and a draft frameworkThe Department will raise the matter at COTO and MINMEC level for an intervention

Mapped and developed key corridors, sub-corridors with associated key nodal points for integration of information flow (O-D pairs) between modes

Finalize mapping of feeder networks on secondary and tertiary corridors

Not Achieved Mapped and developed key corridors, sub-corridors with associated key nodal points for integration of information flow (O-D pairs) between modes

Durban - Free State - Gauteng Logistics and Industrial Corridor Institutional Framework by June 2012

Implement 4 hubs 2050 vision: Durban – Gauteng corridor project City Deep Harrismith Cato Ridge Musina

Achieved None

Rural Integrated Transport Plans

Identify and roll out to 3 rural provinces: Sekhukhune (LP) Kgalagadi (NC) Maluti-a-phofung (FS)

Not Achieved. Work was done but approval by Mayoral Committee

Delays in the approval of the draft KSD IRTP by KSD Mayoral Committee


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Freight Logistics



Reason

Develop and map out key centres of production to support key rural economic nodes

Link and align centres of production to feed national and sub-corridors

Achieved None

Develop rural-specific indicators and targets to monitor freight performance within IDPs and ITPs

Roll out and coordinate to other rural provinces Achieved None

Identify and develop strategic rural freight logistics infrastructure

Roll out and coordinate to other rural provinces Achieved None


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Regional Integration



Reason

Develop traffic flow optimization plans for key border posts

Grobler's Bridge; Qacha’s Nek; Ficksburg Bridge; Van Rooyen; Caledonspoort; Golela; Ramatlabama; Nakop

Not Achieved. Work done but not approved

Six plans were done but not approved

Assessment of traffic flows at gateways (air and seaports)

4 seaports:Durban; Richard's Bay; Cape Town; Saldanha Bay3 airports:OR Thambo International; Cape Town International; King Shaka International

Not AchievedReconfiguration of mandates and fucntions

Implementation plans Decongestion at Maseru Border Post

Not Achieved Delays in adopting recommendations for implementation and lack of capacity due to reallocation of staff to priority projects (i.e. NSC). Project shifted to 2013/2014


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Regional Integration



Reason

Enhanced Africa Integration through implementation of initiatives by regional institutions like NEPAD, AU, SADC, etc.

Complete study on harmonisation of vehicle and operational standards with practical recommendations

Not AchievedThe project commenced in the last quarter of the financial year.

Status of Regional Infrastructure in South Africa

Complete the study with practical recommendations

Not AchievedThe project commenced in the last quarter of the financial year.

Developing Management Instruments for Regional Corridors

Finalising North-South corridor MoUMaintaining and sustaining the TKC & SACU

Not Achieved. MOU and other work was done with DIRCO, DTI on NSC

The North-South Corridor MoU underwent the process of revision when it became apparent that it had to be aligned with the Presidential Infrastructure Coordination Initiative of the NSC as per President Zuma’s appointment by NEPAD. It is currently being negotiated with SADC counterparts and will probably be finalised during the SADC Ministers Meeting during 2013


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Economic Analysis & Modelling



Reason

Modelling and Macro Economic Analysis Reports

- Final report on macro-economic impact of transport

- Final report on land passenger transport modal shift analysis

- Final report on global competitiveness by reducing transport cost (road)

-Achieved -None

Funding Models

- Review models for transport projects under DoT Investor relations promotion

- Participate in 4 infrastructure investment projects in the provinces/municipalities

- Research and review industry policies and funding frameworks

- Sponsorship for investor conference

- Achieved- Achieved- Not Achieved- Not Achieved

- None- None- Capacity Constraints- Process halted after new

Ministerial appointment

Implementation of Integrated Transport Sector B-BBEE Codes

B-BBEE Charter Council continuously undertake the following:-Implementation, monitoring & evaluation of eight sub-sectors-Surveys on eight sub-sectors of transport to track progress of B-BBEE implementation from August 2012 to July 2013-Produce B-BBEE Annual Report

-Achieved None


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Programme 02: Integrated Transport Planning(ITP)Sub Programme: Economic Analysis & Modelling



Reason

Establishment of a Single Transport Economic Regulator (STER)

- Situational Analysis- International benchmarking- Options Analysis

-Achieved None

National Household Travel SurveyTransport statistics for 2011

- Analytical report for the NHTS published

- Transport Statistics Bulletin-Achieved None



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Programme 03: Rail TransportSub Programme: Rail Infrastructure & Industry Development


1 390 rail coaches generally overhauled and upgraded

450 coaches completed Achieved None

Completion of Phase 1: Gauteng Train Control Nerve Centre

5 of 6 sections completed Achieved None

Moloto Development Corridor Feasibility study Achieved None

Bridge City line extension Construction of stations and perway

Not Achieved Variance in project due to labour protest on site


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Programme 03: Rail TransportSub Programme: Rail Infrastructure & Industry Development


Bridge City line extension Construction of stations and perway

Not Achieved Variance in project due to labour protest on site

Budget approval – Procurement of new rolling stock Request for Proposal (RFP) preparation

Budget approved. Procurement and RFP preparation. RFP process and evaluation

Achieved None

Greenview – Pienarspoort line extension

Construction of stations and perway 50% completed

Achieved None


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Programme 03: Rail TransportSub Programme: Rail Operations


Performance Monitoring and Evaluation – successful development and implementation of National Service Level Agreement

Development of National Service Level Agreement and pilot DoT & PRASA

Achieved None


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Programme 03: Rail TransportSub Programme: Rail Regulation


Rail Policy Green Paper Green Paper published Not Achieved Green Paper not published – delay in internal stakeholder engagement process

Established Interim Rail Economic Regulator (IRER)

Interim capacity established Not Achieved IRER not establishedIRER in the process of being established

Finalised accident and incident status report

Status quo report completed Achieved None


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Programme 04: Road TransportSub Programme: Road Regulation


Reducing of fatalities during the year (per province/nationally)

30% (4 200)Not Achieved

There is gross violation of road traffic rules by drivers, continuous drunk driving and pedestrian jay-walkingThe 2006 Road Safety Strategy is under review and development of road safety strategy programmes

Implementation of periodic motor vehicle testing


Not Achieved Implementation could not take place due to prolonged public participation

Implement motor vehicle safety standards

Incorporation of comments to National Road Traffic Act

Not Achieved Public consultation in progress


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Programme 04: Road TransportSub Programme: Road Regulation


Reducing of fatalities during the year (per province/nationally)

30% (4 200)Not Achieved

There is gross violation of road traffic rules by drivers, continuous drunk driving and pedestrian jay-walkingThe 2006 Road Safety Strategy is under review and development of road safety strategy programmes



Not Achieved Implementation could not take place due to prolonged public participation

Implement motor vehicle safety standards

Incorporation of comments to National Road Traffic Act

Not Achieved Public consultation in progress

Facilitate the implementation of Administrative Adjudication of Road Traffic Offences (AARTO)

Implementation of enabling legislation for the national roll-out of AARTO

Not Achieved The AARTO Bill is in the Parliamentary processes


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Programme 04: Road TransportSub Programme: Road Engineering Standards


Road asset management policy & guidelines developed

COTO & MINMEC approval Not Achieved Awaiting COTO & MINMEC approval

Critical technical standards & norms reviewed and revised

Digitised Road Traffic Signs Manual and Route Numbering document updated

Achieved None

Road Infrastructure Safety Framework developed

Develop Road Infrastructure Safety Framework

Achieved None


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Programme 04: Road TransportSub Programme: Road Infrastructure & Industry Development


Number of kilometres/m2 roads maintained

7 484 303 m2 surfaced roads resealedRe-gravel (km): 2 793Black-top patching (m²): 1 357 488Roads bladed (km): 601 156

Not Achieved Continuous changes in provincial project list (b/plans) resulting in delaying the procurement of services

2 156 km of roads rehabilitated 55 km in Mpumalanga118 km national routes35.31 km in Gauteng

Not AchievedDelays in the procurement processes in Mpumalanga and shortage of bitumen for Gauteng and SANRAL

120 000 full-time equivalent (FTEs) jobs created

90 000 FTEs created

Achieved None

To improve rural access and mobility by assisting 21 district municipalities in developing Non-Motorised Transport Infrastructure and facilities by 2014

Facilitate the establishment of rural stakeholder forumsDevelop database of schools and clinics requiring proper access roads

Achieved None


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Programme 04: Road TransportSub Programme: Driving Licence Card Account


Number of driving licence cards produced according to demand

2 001 000 Achieved None

Turnaround time for delivery of driver’s licence cards ordered by provinces measured in calendar days and number of cards ordered per day

Turnaround time for delivery of driver’s licence cards 24 days for 7 201–8 400 cards per day

Achieved None

Number of forged driver's licence cards

0 Achieved None

Collected debts 60 days and older

R13 million Achieved None

Improved ratio of current assets to current liabilities

Ratio of current assets to current liabilities 1:1

Achieved None


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Programme 04: Road TransportSub Programme: Driving Licence Card Account


Collected debts 60 days and older

R13 million Achieved None

Improved ratio of current assets to current liabilities

Ratio of current assets to current liabilities 1:1

Achieved None

Delegations specific to DLCA Review delegations Achieved None

Risk assessment done 1 assessment Achieved None

Asset management and verification plan

- Asset management plan approved and implemented

- Asset verification plan completed and verification conducted

Achieved None

Debt collection strategy reviewed and implemented

Implementation of debt collection strategy, monitoring and review

Achieved None


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Programme 04: Road TransportSub Programme: Road Entity Oversight


Approved Strategic Plans and Annual Performance Plans (APPs) of 5 roads public entities annually

Approval of final Strategic Plans and APPs by the Executive Authority (EA) by 31 March 2012

Achieved No deviations

Reports on analysis of quarterly reports against the APP

Approval of quarterly reports by the EA per quarter


Report on analysis of Annual Reports prepared for the AGMs

Approval of analysis reports by the EA by end of September 2012


Implementation of Electronic Performance Management System (EPMS) for all 12 public entities

Implementation and monitoring of EPMS

Achieved Re-engineering of DoT IT infrastructure and capacity to accommodate the EPMS


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Programme 05: CIVIL AVIATION


Reviewed Airlift Strategy Approval by Cabinet The draft Airlift Strategy has been finalized and is ready for submission to Cabinet for approval.

Role players and stakeholders were not readily available during the consultation process

Negotiated and reviewed bilateral air services agreements

Identify and engage a minimum of 8 key countries

Signed Air Services frameworks with South Korea, Namibia, Maldives and Nigeria

Moratorium on International Travel

Liberalized air services frameworks at SADC and in Africa

Facilitate the establishment of the institutional framework

Ongoing implementation of the Yamoussoukro Declaration (YD)

Moratorium on International Travel/Late confirmations of dates for consultations

Reviewed regulatory framework for ACSA and ATNS

Incorporate the funding model and regulations into the Permission Application Processes

The funding model completed and adopted in principle by the industry. The Airports Company Act Draft Bill and the Air Traffic and Navigation Services (ATNS) Act Bill are ready for consultation with the industry

The delay with the appointment of the Regulating Committee

Forecast and planning framework

Collect and analyse data to monitor industry performance/forecast industry performance

Benchmark and continuous collaboration with stakeholders are currently underwayData is continuously collected and tested against the different approach to forecasting and planning

The delays in the procurement of the specialized forecasting computer software licence


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Managed Permission Application Process for ACSA and ATNS

Facilitate the "Approach to the Permission" process and the Permission Application Process

The regulated companies (ACSA and ATNS) accepted the tariffs as approved by the regulator for the 2010/11 to 2014/15 fourth and fifth year

The delay with the appointment of the Regulating Committee

Facilitate the effective representation of South Africa at SADC, Africa and international civil aviation fora

SA represented at SADC, AFCAC and ICAO

- South Africa was represented in 3 African Meetings

- South Africa was represented in 8 International Meetings

South Africa was not at 3 African Meetings due to late and none approval of submissionsSouth Africa was not represented on 3 International Meetings due to late and none approval of submissions

Promulgated regulations (aviation safety)

Review and update regulations in line with the ICAO SARPS

Achieved None

Established Aviation Appeals Committee

Fully functional Aviation Appeals Committee

Achieved None


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Promulgated regulations(Aviation security)

Review and update regulations in line with the ICAO SARPS

Achieved None

Aviation Security (AVSEC) Audit facilitated

Closing of findings Achieved None

Reviewed National Security Programme (NASP)

Amendment and approval of the NASP

Achieved None

Facilitated the establishment of a One-stop Aviation Security System within the region

Presentation to the SADC - Civil Aviation Committee Conduct a security risk assessment

Achieved None

Promoted aviation awareness Visited 221 schools in Limpopo, Free State, Gauteng, Mpumalanga, KwaZulu-Natal and Eastern Cape provinces

Achieved None

Airport/airspace Slot Coordination Framework

Complete research on the appropriate model for the Slot Coordination Framework to be implemented within South Africa

Achieved None


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Programme 05: CIVIL AVIATIONPublic Entity Oversight


Approved strategic/ corporate plans and annual performance plans (APPs) of 3 public entities annually

Facilitate submission and approval of ACSA and ATNS Corporate Plans and SACAA’s Strategic Plan by the Executive Authority by 31 March 2013

Achieved None

Approved reports on analysis of quarterly reports against the annual performance plans (APPs)

Facilitate submission of quarterly reports, prepare analysis report and provide feedback to Boards of public entities, quarterly

Achieved None

Reports on analysis of annual reports prepared for the Annual General Meetings (AGMs)

Facilitate submission of annual reports by 31 AugustPrepare analysis report for the AGMs by end September

Achieved None


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Programme 06: MARITIME TRANSPORT


Position paper on the trends in port efficiencies, operations and management

Papers on the current levels of port efficiency and recommendations on best practices and regulatory measures to be adopted

Achieved None

Evaluate implementation of Ports Act and proposed amendments

Increase in the number of ships registered in the South African Register

Achieved None

Evaluate implementation of Ports Act and proposed amendments

Approved amendments on section 3(2) of the National Ports Act

Achieved None

Evaluate efficiency of freight logistics and cargo tracking

Freight Logistics Database developed

Not Achieved Delays in SCM Processes


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Develop a Green Paper on Maritime Shipping Policy (coastal, trans-shipment, ship repair registration, recycling, etc.)

Green Paper on shipping policy approved and ready for launch

Achieved None

Review draft merchant shipping by completing IOPC, CLC, Ballast Water Act, safety regulations, MLC 2006 legislation

Approved IOPC and CLC Bill and compliance to IMO Conventions

Achieved None

ISPS Code Awareness Campaigns

Awareness campaign in all ports

Achieved None

Develop an Inland Waterway Strategy

Inland waterway strategy ready for publication

Not Achieved Awaiting outstanding comments from key stakeholders.


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Audit & evaluate implementation of safety regulations and compliance with international conventions and standards

Maritime Transport Safety Compliance established

Achieved None

Framework for reporting on safety incidents defined and quarterly report available

Maritime Transport safety report established

Achieved None

Develop and monitor regional agreement on LRIT

Regional cooperation on maritime safety in place

Achieved None

Promote career awareness in maritime transport sector

Increase awareness and participation in the Maritime Sector. Promote the Port of Ngqura as the new deep water port in the Southern Africa

Achieved None

Audit rate of employment creation in maritime transport sector over past 3 years and ongoing trend (emphasis on seafarers)

Report on rate of job creation in maritime transport sector

Not Achieved Lack of resources


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Negotiate bilateral agreements to improve rate of employment of seafarers globally

Leverage globalisation to improve SA maritime transport sector and develop the industry locally and internationally

Achieved None

Develop business case for a coastal shipping line between Nqgura and Richard's Bay (type of cargo, duration, cost, benefits)

To establish feasibility of domestic coastal shipping

Not Achieved Lack of Capacity

Develop business case for ship acquisition and operations (sustainability based on cargo, crew, destinations, ROI, etc.)

To establish financial sustainability of ship ownership and operations

Not Achieved Lack of Capacity

Study on carbon footprint in SA maritime domain

Report on the extent of pollution by ship transportation in SA waters

Not Achieved Duplication of roles in the Department

Facilitate the implementation of multilaterals on environmental protection within maritime transport

Regional cooperation on marine environmental protection established

Not Achieved Stakeholders engagements still in process


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Programme 07: PUBLIC TRANSPORTSub Proramme: Public Transport Regulation


NLTA Amendment Bill Process Amendment Bill through Parliament

Not Achieved Consultations on the crafting of solutions took far more time than anticipated

Train and place interns in municipalities and district municipalities

Initially, there were 19 intern intakes. However, 4 found employment in the course of the year. Hence. 15 interns were fully trained. Based on request by district municipalities, the programme was extended by 3 months and ended in June 2013

Achieved None

Number of interprovincial and tourism OL applications processed by the national regulatory entity

The number of operating licences could not be processed as the sign off for the establishment of the NPTR only occurred on 22 February 2013 as indicated above

Not Achieved Due to change of Minister in July 2012, the establishment of the NPTR was significantly delayed


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Programme 07: PUBLIC TRANSPORTSub Proramme: Public Transport Industry Development


Developed systems to ensure full participation of small bus operators in the public transport operations

Convene a national elective conference for small bus operators

Achieved None

Managed roll-out and monitoring of taxi recapitalization project and introduce environmentally friendly taxi vehicles

7 857 taxis to be scrapped. Achieved None

Developed a public transport conflict resolution strategy

Develop and workshop the strategy amongst stakeholders and finalize its development

Achieved None

Manage & Monitored the Public Transport contracts & institute subsidy management systems

Approval of final funding strategy

Achieved None


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Programme 07: PUBLIC TRANSPORTSub Proramme: Public Transport Network Development


Rea Vaya Phase 1B launched

Advanced preparations to operate Phase 1B, Phase 1C detailed planning completedIncremental roll-out of Phase 1 into a full Phase 1 service in December 2013

Not AchievedCity has had delays in pre-negotiations with affected operatorsNegotiations with current operators are proofing difficult to conclude, e.g. City of Cape Town was in a fierce legal battle with the current bus operator over market share in operations

Libhongo Lethu (NMB) Phase 1

25 bus pilot project launched and operational

Achieved None

Draft operational plans for Msunduzi, Ekurhuleni and Mangaung

Draft operational plans for Msunduzi, Ekurhuleni and Mangaung

Not Achieved Delays in SCM processes in Mangaung

Number of average week-day bus rapid transit passengers

Rea Vaya at 50 000 and My Citi at 15 000

Estimates show that Rea Vaya achieved 42 000 and My Citi achieved 12 000

Bus Operator strikes


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Programme 07: PUBLIC TRANSPORTSub Proramme: Rural Scholar Transport


National Scholar transport policy & framework finalised and implementedNational Scholar transport policy & framework finalised and implemented

Scholar transport policy finalised and implemented.

Not Achieved Stakeholders contested the location of contracting authority

Develop Scholar Transportation framework inclusive of operating standards and safety guidelines

Achieved None

A reviewed Rural Transport Strategy to address provincial implementation PTN plans

A questionnaire and a preliminary status quo report were developed

Achieved None

Number of Provinces migrated scholar transport from education to transport

9 Provinces 5 Provinces achieved The migration of transport function is determined by the Provincial Legislatures in terms of the draft policy.Stakeholders contest the location of the contracting authority.

Contents:

Drivers of Internal Control

Emphasis of matter

Report on other Legal and Regulatory Requirements Human Resource management and compensation

Other Findings• Expenditure management• Internal control - Leadership

Other Reports

Details of Irregular Expenditure

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Audit Outcomes for 2012/13

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Drivers of Internal Control

47

Drivers of Internal Control(Continued)

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Drivers of Internal Control (Continued)

Audit Report

Audit Report Actions taken Actions to be taken

The audit opinion was unqualified with emphasis of matter

Emphasis of matter:

The Department is the defendant in a lawsuit concerning the extension of a contract

A forensic investigation regarding the extension is underway

Await outcomes of the lawsuit and investigation to determine further steps

Included in debtors is R704 million expenses incurred on eNaTIS. It is uncertain whether the amount will be recovered

On 30 July 2013 the Minister of Transport instructed the RTMC to pay over transaction fees

On 16 September the RTMC agreed to pay fees as it can afford to

Treasury was requested to appoint the Treasury Advisory Unit to:

• Develop funding scenario’s for the RTMC

• Develop a plan of how RTMC will repay the Department

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Audit Report (Continued)


Report on other Legal and Regulatory Requirements:

Predetermined objectives:

There were no material findings concerning the usefulness and reliability of information

A total of 47% of planned targets were not achieved

A number of projects were carried forward to the next financial year

Quarterly performance reports indicate progress on projects carried forward

Posts must be filled to address capacity constraints

Setting of targets to be realistic

Procurement:

Goods and services above R500,000 were procured without inviting competitive bids.

Please refer to the slides on Irregular Expenditure.

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Human Resource management and compensation:

Positions in senior management were vacant more than 12 months and not advertised in 6 months

Line managers were instructed to advertise posts

Disciplinary steps to be taken

Vacancy status will be monitored

Recruitment staff working overtime

Obtain additional capacity for Recruitment staff

Other findings:

Expenditure management:

The accounting office did not take effective and appropriate steps to prevent irregular expenditure

Please refer to the slides on Irregular Expenditure.


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Internal control – Leadership:• Lack of coordination and

effecive oversight over a major capital project

• Lack of effective human resource management to ensure that adequate and sufficiently skilled resources are in place

National Treasury condoned the irregular procurement of Eastern Cape Department of Transport

Instructions were issued to advertise all posts

Further procurement to be regularised by the Province

Obtain additional capacity for recruitment staff

Other Reports:

Various investigations are being conducted to evaluate compliance with supply chain management prescripts

Some investigations were concluded and disciplinary steps have commenced

The investigations indicate that management attends to issues of non-compliance

Irregular Expenditure

Added in the 2012/13 financial year:

(P 205, Note 27.1 and P206, Note 27.2)

Amount

(R’000)

Notes

Irregular expenditure relating to prior year:

Change Note signed with a service provider without a delegated authority and without considering the invitation of bids.

1,606 Investigation completed and disciplinary steps have commenced

Overpayment to University recovered (27) Resolved

Sub total 1,579

Irregular expenditure relating to current year:

Publication arranged without following procedures

492 Investigation completed and disciplinary steps are underway

Quotation accepted based on price 61 Acting DDG: Information Technology is investigating

Bids not invited for a construction project 345,237 Investigation completed and condoned by National Treasury

Sub total 345,790

Total 347,369

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Irregular Expenditure (Continued)

Remaining Irregular Expenditure at

31 March 2013: (P 205, Note 27.1)

Amount

(R’000)

Notes

Change Note signed with a service provider without a delegated authority and without considering the invitation of bids.

43,458 Investigation completed and disciplinary steps have commenced

Bidder selected based on functionality 12,407 Being investigated by Public Protector. Own investigation is being started

Publications arranged without following procedures

619 Investigation completed and disciplinary steps are underway

Quotation accepted based on price 61 The Acting DDG is investigating before disciplinary steps will be taken

Total 56,545

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Contents:

• Adjusted Budget 2012/13• Expenditure in 2012/13 per Programme• Expenditure in 2012/13 per Economic Classification• Funds shifted in 2012/13• Under / (Over) expenditure in 2012/13• Under / (Over) Expenditure per Programme in 2012/13• Expenditure Breakdown• Rollovers to 2013/14

55

Highlights of 2012/13 Financial Statements

Details R’000

Original budget for 2012/13 38,828,952

Funds rolled over from the previous year: 80,376

National Household Travel Survey 34,900

Development of rail policy and act 2,308

Technical support and verification of bus contract payments 8,500

Technical support and verification of road infrastructure payments 30,200

S’Hamba Sonke Programme Management support 4,468

Significant and unforeseeable economic and financial events:

Higher personnel remuneration increases than the main budget provided for

3,130

Adjusted Budget 2012/13

56

Details R’000

Unforeseeable and unavoidable expenditure: 470,000

Removal of the Seli 1 wreck from the Bloubergstrand beach 20,000

Refurbishment of Mthatha Airport 450,000

Self financing amounts: 297,000

Transaction fees for vehicle registrations

Savings: (32,230)

Under spending on taxi recapitalisation transfer

Total Adjustments 818,276

Total Adjusted Budget 39,647,228

Adjusted Budget 2012/13 (Continued)

57

Per Programme Budget Expenditure Variance %

R'000 R'000 R'000 Spent

1. Administration 390,899 359,582 31,317 92.0%

2. Integrated Transport Planning

110,094 103,480 6,614 94.0%

3. Rail Transport 10,297,633 10,286,554 11,079 99.9%

4. Road Transport 18,230,705 18,229,358 1,347 100.0%

5. Civil Aviation 520,807 411,788 109,019 79.1%

6. Maritime Transport 137,097 124,666 12,431 90.9%

7. Public Transport 9,959,993 9,812,787 147,206 98.5%

TOTAL 39,647,228 39,328,215 319,013 99.2%

58

Expenditure for 2012/13per Programme

Per Economic Classification

Budget Expenditure Variance %

R'000 R'000 R'000 Spent

Compensation of Employees 289,259 287,765 1,494 99.5%

Goods and Services 984,998 879,760 105,238 89.3%

Provinces and Municipalities 17,324,512 17,220,810 103,702 99.4%

Departmental Agencies and Accounts

9,910,405 9,910,198 207 100.0%

Universities and Technikons 9,648 9,406 242 97.5%

Foreign Governments and International Organisations

9,132 8,693 439 95.2%

Public Corporations and Private Enterprises

10,227,905 10,227,905 - 100.0%

Non-profit Institutions 17,827 17,827 - 100.0%

Households 414,097 408,064 6,033 98.5%

Gifts and donations 25 24 1 96.0%

Buildings and fixed structures 450,000 345,237 104,763 76.7%

Machinery and Equipment 9,420 7,569 1,851 80.4%

Payment for financial assets - 4,957 (4,957) N/a

TOTAL 39,647,228 39,328,215 319,013 99.2%59

Expenditure for 2012/13per Economic Classification

60

Funds shifted in 2012/13

Programme (Amounts in R’000)

Classification 1 2 3 4 5 6 7 Total

Compensation (8,750) (1,750) (3,731) (9,000) 501 (4,270) (3,000) (30,000)

Goods & Services 62,985 (6,973) (130) (5,075) (92) (7,757) 18,810 61,768

Agencies - - - 14,000 (450,000) - - (436,000)

Taxi Scrapping - - - - - - (49,500) (49,500)

Other 295 265 75 2 30 - 667

Capital 2,520 60 130 90 75 190 3,065

Fixed structures - - - - 450,000 - - 450,000

Totals 57,050 (8,398) (3,731) - 501 (11,922) (33,500) -

Programme (Amounts in R’000)

Classification 1 2 3 4 5 6 7 Total

Compensation 208 326 21 485 12 8 434 1,494

Goods & Services 34,449 5,569 10,988 1,166 4,689 11,104 37,273 105,238

Transfers 582 19 - 7 (636) 1,076 109,576 110,624

Capital 554 703 70 89 104,954 243 1 106,614

Fin transactions (4,476) (3) - (400) - - (78) (4,957)

Totals 31,317 6,614 11,079 1,347 109,019 12,431 147,206 319,013

Rollovers requested 30,727 1,510 8,000 2,600 112,063 - 33,000 187,900

Under / (Over) Expenditure per Programme and Classification

Major under expenditure:P1: A number of projects were delayed after reprioritizing R24.1m from Office AccommodationP5: Under spent R104.8m on the refurbishment of Mthatha AirportP6: Saved R9.5m on additional funds allocated to remove the Seli 1 wreckP7: A number of projects were delayed after reprioritizing R49.5m from the Taxi Recapitalisation transfer payment across Programmes during the yearP7: Transfer payment withheld due to under spending by a City R103,7m

61

Programme 1: Administration Rm

Invoices not received: Contribution for premises 6.0

Invoices not received: Operational plans for Africa Cup of Nations 3.0

Invoices not received: Monitoring Tool 0.2

Funds committed but unspent: Developing a Policy for Road Accident Benefit Scheme 6.1

Funds committed but unspent: PABX 5.7

Funds committed but unspent: New Public Private Partnership for fleet services 4.8

Funds committed but unspent: Transaction Advisors for new premises 3.6

Funds committed but unspent: Board Rooms and door numbers 1.0

Under spent: Furniture and equipment due to vacant posts 0.6

Under spent: The Transport Sector Education Authority was not paid 0.2

Under spent: Compensation of employees 0.2

Under spent: A University discontinued its programme 0.2

Under spent on Communications (funds shifted to cover losses) 4.2

Thefts and losses not budgeted for (4.5 )

Total 31.3

Under / (Over) Expenditure per Programme for 2012/13

62

Programme 2: Integrated Transport Planning Rm

Under spent: Consolidating the National Transport Databank 2.0

Under spent: Greenhouse Gas Inventory 1.0

Under spent: Transport Sector Economic Regulator 0.7

Under spent: Macro Planning Framework 0.7


Under spent: Study on Macro Economic Impact of Transport 0.6

Under spent: Energy Consumption Framework 0.5


Saved on operational costs 0.1

Total 6.6


63

Programme 3: Rail Transport Rm

Under spent but committed: Feasibility Study on Moloto Corridor 8.0

Under spent: Develop a Service Level Agreement with the Passenger Rail Agency of S.A

1.5


Saved on operational expenditure 0.8

Saved on development of a Rail Policy and Act 0.6

Total 11.0

Programme 4: Road Transport Rm

Saved on investigations on issuing of fraudulent roadworthy certificates 0.8



Total 1.3


64


65

Programme 5: Civil Aviation Rm

Under spent: Upgrade of Mthatha Airport 104.8

Under spent: Regulating Committee to develop tariffs for aviation agencies 2.9

Under spent: Establishment of Aviation Safety Investigation Board 2.2

Under spent: Establishment of Appeals Committee 1.3

Over spent on international membership fees (0.6)

Over spent on Air Services Licensing Council (1.6)

Total 109.0

Programme 6: Maritime Transport Rm

Savings on funds allocated to remove the Seli 1 wreck from the Bloubergstrand beach 20.0

Over spent: Oil pollution services (10.1 )

Over spent: Watch keeping services (0.4 )

Under spent: Development of a Ship Clearance System 1.5


Saved on international membership fees 1.1

Saved on operational expenditure 0.1

Total 12.4


66

Programme 7: Public Transport Rm

Under spent: Stopped a Public Transport Infrastructure and Systems Grant due to consistent under spending

103.7

Under spent: Less taxis scrapped than budgeted for (after reprioritizing R49.5m to other projects)

5.8

Under spent: Implementing the "Shova Kalula" (bicycle transport) programme in provinces

1.7

Under spent: Migration Plan for Scholar Transport 1.5

Under spent: Development of a Scholar Transport Framework 1.5

Funds committed but unspent: Develop National Land Transport Information Systems 15.0

Funds committed but unspent: Developing a National Public Transport Regulator 7.0

Funds committed but unspent: Implementing the Taxi TR2020 Strategy 6.0

Funds committed but unspent: Oversight of Integrated Public Transport Networks 5.0

Total 147.2

Expenditure Breakdown for 2012/13

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

PRASA SANRAL

Provincial Road Maintenance Grant Public Transport Infrastructure & Systems

Public Transport Operations Goods and Services

Taxi recapitalisation Buildings and fixed structures

Compensation of Employees

Total 99.32%26.01%

24.73%

20.3%

12.42%10.98%

2.24% 1.03% 0.88% 0.73%

Internal

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Expenditure Breakdown for 2012/13 (Continued)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Other agencies Rural Grant Non Profit Institutions

Universities Foreign memberships Machinery and equipment

Financial transactions Leave gratuity and sponsorships

Total 0.68%0.46%

0.09%

0.05%0.024% 0.022% 0.019% 0.013% 0.002%

Internal

68

69

Goods and Services: Major expenditure Programme R'000

Corporate Services Administration 56,849

Communications Administration 34,747

Administration – other Administration 30,947

Consultants Office of the Director-General Administration 29,587

Office Accommodation Administration 29,504

Ministry Administration 21,432

National Household Travel Survey Integrated Transport Planning 41,895

Integrated Transport Planning – other Integrated Transport Planning 30,777

Rail Transport Rail Transport 6,498

eNaTIS maintenance and operations Road Transport 297,000

Programme Development S'Hamba Sonke Road Transport 31,120

Road Transport – other Road Transport 17,937

Civil Aviation Civil Aviation 12,110

Oil Pollution Prevention Maritime Transport 45,517

Watchkeeping services Maritime Transport 30,909

Maritime Transport – other Maritime Transport 8,350

Taxi Scrapping Administrator Public Transport 93,192

Technical support and verification of bus contract and road infrastructure payments

Public Transport 43,937

Public Transport - other Public Transport 17,452

Total Goods and Services 879,760

Expenditure Breakdown for2012/13 (Continued)

Details (R’000) Requested Approved

Programme 1: Administration:

Road Accident Benefit Scheme Policy 6,116 -

Office Accommodation 6,000 -

Supply and installation of the PABX system 5,679 -

Transaction Advisor for a new Public Private Partnership for fleet management services

4,766 -

Appointment of a Transaction Advisor for new premises 3,593 -

Programme Management Unit operational plans for the Africa Cup of Nations 2013 3,013 -

Supply and installation of door numbers and names 615 -

Supply and installation of microphones in the Boardrooms 468 -

Transfer to University of Stellenbosch 242 -

Programme Management Unit monitoring and Evaluation tool 235 -

Sub total 30,727 -

Programme 2: Integrated Transport Planning:

Development of a transport rural accessibility/multi-deprivation index for South Africa

1,510 -

Programme 3: Rail Transport:

Moloto Development Corridor 8,000 -

70

Rollovers to 2013/14

Details (R’000) Requested Approved

Programme 4: Road Transport

Conducting investigations into the issuance of fraudulent roadworthy certificates 2,600 -

Programme 5: Civil Aviation:

Mthatha Airport refurbishment 104,762 104,762

Regulating Committee 2,900 -

Establishment of the Aviation Safety Investigation Board 2,150 -

Appeals Committee 1,325 -

National Airports Development Plan 926 -

Sub total 112,063 104,762

Programme 7: Public Transport:

National Land Transport Information Systems 15,000 -

National Public Transport Regulator 7,000 -

Taxi Recapitalisation 2020 (TR3 2020) strategy 6,000 -

Oversight of Integrated Rapid Public Transport Networks 5,000 -

Sub total 33,000 -

Total 187,900 104,762

71

Rollovers to 2013/14

Human ResourceManagement & Development

72

Programme Number of posts Number of posts filled

Vacancy Rate

Number of posts filled additional to the establishment (Contract employees)

Programme 1(Transport Ministry, Office of the Deputy Minister, Office of the DG, Branches: Office of the Chief Operations Officer, Financial Services & Transport Information Systems)

376 286 23.94% 36

Programme 2(Integrated Transport Planning)

65 47 27.69% 7

Programme 3(Rail Transport)

36 24 33.33% 1

Programme 4(Road Transport)

112 74 33.93% 3

Programme 5(Civil Aviation)

71 54 23.94% 9

Programme 6(Maritime Transport)

36 24 33.33% 0

Programme 7(Public Transport)

77 57 25.97% 5

TOTAL 773 566 26.78% 61

Employment and vacancies by programme, 31 March 2013

73

Salary band Number of posts

Number of posts filled

Vacancy rate

Number of posts filled additional to the establishment (Contract employees)

Lower skilled (Levels 1-2) 0 0 0% 0

Skilled (Levels 3-5) 64 53 17.19% 8

Highly skilled production(Levels 6-8)

245 188 23.26% 24

Highly skilled supervision (Levels 9-12)

317 218 31.23% 11

Senior management (Levels 13-16)

147 107 27.21% 18

Total 773 566 26.78% 61

Employment and vacancies by salary bands, 31 March 2013

74

Salary band

Number of employees as per band as on 1 April 2012

Appointments and transfers into the Department

Terminations and transfers into the Department

Turnover rate

Lower skilled (Level 1-2)

0 0 0 0%

Skilled Levels (Level 3-5)

50 15 4 8%

Highly skilled production (Level 6-8) 160 64 22 13.75%

Highly skilled supervision (Level 9 – 12)

201 32 14 6.96%

Senior Management Service Band A(Level 13)

71 13 9 12.68%

Senior Management Service Band B(Level 14)

20 4 1 5%

Senior Management Service Band C(Level 15)

9 1 0 0%

Senior Management Band D(Level 16)

1 2 1 100%

Total 512 131 51 9.96%

Annual turnover rates by salary band for the period 1 April 2012 to 31 March 2013

75

Termination Type Number % of totalDeath 2 0.39%

Resignation 10 1.95%

Expiry of contract 10 1.95%

Dismissal – Operational changes 0 0%

Dismissal – misconduct 0 0%

Dismissal - inefficiency 0 0%

Discharged due to ill-health 1 0.19%

Retirement 1 0.19%

Transfers to other Public Service Departments 27 5.27%

Others 0 0%

Total 51 9.96%

Total number of employees who left as a % of the total employment as on 1 April 2012

9.96%

Reasons why staff are leaving the department

76

Salary Band

Employees 1 April 2012

Promotions to another salary level

Salary bands promotions as a % of employees by salary level

Progressions to another notch within a salary level

Notch progression as a % of employees by salary band

Lower skilled (levels 1-2)

0 0 0% 0 0%

Skilled (Level 3-5) 50 0 0% 44 88%

Highly Skilled Production (Level 9-12)

160 25 15.62% 122 76.25%

Highly skilled supervision (Levels 6-8)

201 15 7.46% 193 96.02%

Senior management (Levels 13-16)

101 7 6.93% 64 63.37%

Total 512 47 9.18% 423 2.62%

Promotions by salary band

77

Occupational category

Male Female

African Coloured

Indian White African Coloured

Indian White Total

Legislators, senior officials and managers

52 1 5 8 32 0 4 4 106

Professionals 54 0 0 3 47 1 3 6 114

Technicians and associate professionals

42 2 0 2 57 0 1 1 105

Clerks 79 1 0 1 143 0 0 8 232

Service and sales workers

0 0 0 0 0 0 0 0 0

Skilled agriculture and

0 0 0 0 0 0 0 0 0

fishery workers

0 0 0 0 0 0 0 0 0

Employment EquityTotal number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013

Occupational category

Male Female African

ColouredIndian White African

ColouredIndian White Total

Craft and

related trades workers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations

0 0 0 0 0 0 0 0 0

Total 227 6 5 14 279 2 8 25 566

Employees with disabilities

3 0 0 0 3 0 0 5 11

Employment Equity Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013

80

Abbreviations

Abbreviation Meaning

eNaTIS Electronic National Traffic Information System

PRASA Passenger Rail Agency of South Africa Ltd.

RSR Railway Safety Regulator

SANRAL South African National Roads Agency SOC Ltd.

RTMC Road Traffic Management Corporation

CBRTA Cross Border Road Transport Agency

RTIA Road Traffic Infringements Agency

RAF Road Accident Fund

ACSA Airports Company of South Africa Ltd.

ATNS Air Traffic and Navigation Services Company Ltd.

SACAA South African Civil Aviation Authority

SAMSA South African Maritime Safety Authority

PR Ports Regulator of South Africa

AARTO Administrative Adjudication of Road Traffic Offences

ICAO International Civil Aviation Organisation

Thank you

81

Documents

Portfolio Committee on Transport