TRADE AND INDUSTRY PORTFOLIO COMMITTEE PRESENTATION 11 October2012 Presenter :Ebrahim Mohamed Acting Commissioner ;NCC 1

TRADE AND INDUSTRY PORTFOLIO COMMITTEE PRESENTATION

11 October2012

Presenter :Ebrahim Mohamed Acting Commissioner ;NCC

1

ANNUAL REPORT 2011/122

NCC Delegation

–-––

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NCC DELEGATION Ebrahim Mohamed Acting Commissioner

Kgabo Mantsho Chief Financial Officer

Prudence Moilwa Head :Enforcement and Investigations

Phumeza Mlungu Head :Education Awareness and Advocacy

David Railo Head :Research

Oatlhotse Thupayatlase Head: Legal

Ntsie Netshitomboni Director :IT

Strategic Objectives

The work of the National Consumer Commission was guided by the following strategic objectives ;•To Protect Consumer from Hazards through Advocacy; Education and Awareness •Improve consumer redress as envisaged in the CPA•Protect Consumers from unethical business practices and misconducts through law enforcement and compliance•Conduct research for policy, legislative and regulatory improvement •Customer and Stakeholder Relationship Management•Ensure the establishment of a functional organization•Achieve the mandate of the NCC with an optimal staff complement•Implement an organization-wide performance management system•Create the brand of the NCC as South Africa’s consumer voice•Provision of Effective ICT infrastructure •Implement an effective and efficient financial management system

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Highlights

-Awareness: Public awareness of consumer rights for 22 557 300 consumers via print and electronic media. Provincial seminars on the CPA targeted at community based non-governmental organizations were undertaken.

-Consumer education: to schools during the Nelson Mandela 2011 birthday celebration at Sunnyside Primary School. Interacted in person with 6 708 consumers and business/NGO representatives towards consumer education on the CPA.

-Research: has been conducted into the Banking, Airlines, and Auctions Industries. Inadequate price disclosures were identified within the banking industry specifically as consumers transact via ATMs. The Commission presented these findings to banking sector and an improvement in the level of price disclosures has been observed which makes it easier for consumers to exercise their right to choose. The Airlines Industry is also responding to the research findings and has started aligning its contracts with the provisions of the CPA. A Consumer Affordability Index, a measure of affordability of various basic goods by consumers was compiled. This Index has given the Commission a glimpse into the levels of affordability of consumers of different income groups. It is expected that the Index will assist the Commission in formulating policy positions towards improving the lives of consumers.

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-Redress: The Commission assisted thousands of consumers who lodged complaints. The Commission’s interventions has translated into a total of R26 619 994 being refunded to consumers in this regard.Redress in the form of replacement and a restoration was also achieved with 405 replacements of faulty products mostly within the Retail, ICT and Motor Industry sectors. Suppliers cancelled 416 contracts entered into by consumers as a result of practices undertaken not in the spirit of the CPA. These were mostly cell phone, timeshare and fitness center contracts. Further redress also took the form of repairs, written apologies and gift vouchers as a gesture of good will. Using conciliation methods, the Commission was instrumental in restoring relationships between suppliers and consumers that had deteriorated as a result of misunderstandings or lack of communication.

-Pro-active investigations: were also conducted into the Retail and Manufacturing, ICT and open Medical Aid Schemes. Interventions in this regard have started yielding fruit as the terms and conditions of business practice within these industries are becoming more CPA compliant. The Commission has 107 compliance notices before the National Consumer Tribunal for adjudication. Seventy nine (79) of the compliance notices were objected to by suppliers whilst 28 are defaults wherein the suppliers neither objected nor complied with the notices.

-Industry Code Accreditation: Draft Guidelines on the accreditation process were developed and will be published in the new financial year .

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Performance Against the Business Plan

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To Protect Consumer from Hazards through Advocacy; Education and Awareness Strategic Objective

Measure/Indicator

Target Actual

To Protect Consumer from Hazards through Advocacy; Education and Awareness ".

Measure 1. 1 Consumer Protection Awareness Rate

% Baseline Established of Consumer Satisfaction Index)

-Terms of Reference for the project developed.Desktop survey/research undertaken to establish the level of awareness for consumer rights messages passed on to consumers via interviews/ articles as conducted by the NCC and published in both print and electronic media.

-Report developed indicating that 22 557 300 consumers were reached via media which far exceeded the targeted 10 million consumers.

Target Exceeded.

Measure 1.2 Information and themes on consumer protection accessed online (website ) or in print

Consumer Rights as espoused in the CPA and consumer themes

-Fact sheets targeted at educating consumers themed in line with consumer rights as stipulated in the CPA were developed and approved. These fact sheets focused on: right to privacy; - right to choose; right to disclosure of information; right to fair and responsible marketing; right to fair and honest dealings; right to fair just and reasonable terms and conditions; right to fair value, good quality and safety; supplier accountability and how to lodge a complaint.

- A booklet deconstructing the messages as encapsulated in the 8 basic consumer rights to be consumable to LSM 1-4 and providing a graphic presentation of the messages in a story form was developed. Delay in printing due to budgetary constraints.

Target

achieved

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To Protect Consumer from Hazards through Advocacy; Education and Awareness

Measure 1.2 Information and themes on consumer protection accessed online (website ) or in print

Consumer Rights as espoused in the CPA and consumer themes

-Fact sheets targeted at educating consumers themed in line with consumer rights as stipulated in the CPA were developed and approved. These fact sheets focused on:

-right to privacy; - right to choose; right to disclosure of information; right to fair and responsible marketing; right to fair and honest dealings; right to fair just and reasonable terms and conditions; right to fair value, good quality and safety; supplier accountability and how to lodge a complaint.

- A booklet deconstructing the messages as encapsulated in the 8 basic consumer rights to be consumable to LSM 1-4 and providing a graphic presentation of the messages in a story form was developed. Delay in printing due to budgetary constraints.

Target

achieved

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Measure 1.3 Number of consumer workshops, Izimbizo and conferences conducted

3 Izimbizo targeted at rural communities and designed to introduce the legislation and the protection it affords were held in the Free State, North West and Limpopo provinces. 2500 were reached.

15 consumer education workshops were conducted for the youth, women via the Stokvel clubs, children, and at church (Kagiso Faith Community Sanctuary). Communities in Soweto were also visited at the invitation of councillors, The Sunnyside Primary School was the beneficiary of consumer education during the Nelson Mandela Day were learners as well as educators participated. Government department employees were also reached for consumer workshops i.e. Public Works (3-days) and the IEC. The taxi industry has also been targeted and 1 workshop for the Centurion Taxi Association was conducted. In total 2100 consumers were reached.

Target Partially Met3 Izimbizo were hosted due to numerous challenges such as inadequate provincial support, political and traditional tensions as well as lack of funding.

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Business focused workshops design to facilitate for voluntary compliance were conducted for business associations as well as the Pretoria Post office. In total 155 participants were reached.

The Commission has also exhibited in 3 shopping malls in and around Gauteng and has participated during the dti open day exhibition as well as during the Debt Management outreach as organised by the NCR. A foot count for mall patron during the mall exhibitions was 14000 consumers.

1 Public Hearing: Consumer rights Day 2012 which took the form of a panel discussion was undertaken with participation by business, media, civil society, academia and the general public under the theme “”How have consumer rights changed for South Africans since the inception of the NCC”.

1 Meeting was held with the University of Johannesburg Universities and a proposal developed towards the inclusion of the CPA as part of the Curriculum for undergraduate studies.

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Measure 1.4 Percentage of consumers finding NCC advocacy comments useful

75% of consumers finding the NCC comments useful

-A continuous evaluation of audiences engaged for consumer workshops was undertaken and a sample taken to establish the rate of consumer finding advocacy comments useful.

-Data gathered during the 6 consumer education workshops undertaken

-Report on NCC Advocacy Comments revealed that 77.2% found the information useful and 93.2% said they would attend a similar workshop again.

Target Exceeded

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Measure 1.5 Established Standing Advisory Committees in terms of Sec 3(1)(b

3 standing Advisory Committees

( Vulnerable groups, Stakeholders; and provinces)

-Terms of Reference for the 3 Standing Advisory Committees designed to set the rules by which the SAC are to be governed were developed and approved. 1 workshop for the SAC on provincial coordination was conducted with 6 provinces participating. Engagement with MECs on the TOR underway. 1 Meeting was held with the Disabled Person of South Africa towards soliciting nominees to serve on the SAC for vulnerable groups. Advertisement placed with the Sunday Independent to invite nominations for persons to serve on the Committees. BUSA contacted to nominate representatives on SAC on industry and civil society stakeholders. Continuous engagement with the SADC headquarters and SADC counterparts ongoing towards sharing information on the CPA to encourage that SADC as whole moves at a similar pace as far as consumer protection is concerned. The NCC attended 2 SADC Competition and Consumer Policy Committee workshop held in Botswana. Road show on the CPA undertaken to Zimbabwe.

-Presentation on the CPA were made to the following stakeholders: Eastern Cape Provincial House of Traditional Leaders, Franchise Association of South Africa, USAID, South African Institute of Auctioneers, UNISA Bureau of Market Research Meeting with FSB, Dept. of Health, German Embassy, Dept. of Tourism and COTTI Regulatory Cluster, New Era Consumer Rights Alliance, The National Consumer Forum, ESST, were hosted/ attended.Teleconferences held with the Federal Trade Commission of the US, African DialogueFTC technical assistance secured for three months residency within the NCC.

Target met: Nominations received for representation on the SAC not enough to form a quorum.

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To Protect Consumer from Hazards through Advocacy; Education and Awareness Improve consumer redress as envisaged in the CPA

Measure 2.1: Percentage of complaints timely processed and successfully resolved.

90-95% of complaints received

73 959- calls attended to via the Call Centre 16 831- Matters received 16831 –Complaints Processed 374- Compliance Notices Issued 2937 Consent agreements concluded 3597- conciliations conducted during quarter 206 –Referrals

Target achieved

Measure 2.2:percentage of consumer satisfaction with the NCC complaints Handling system

% baseline established

-Standard Operating Procedure developed and Implemented -received Letters of Satisfaction from Consumers -World Consumer Rights Day –Positive Feedback from consumers Business

Target achieved

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Measure 2.3 Number of accredited ADR Practitioners

3 Consumer protection sectors: ADR agents x 2 i.e conciliation – appointed.3 Consumer Protection Groups and NGOs

-Two external conciliator joined the NCC on contract, increasing the number of qualified conciliators to three.-5 trainee conciliators appointed on non- complex/Simple complaints under supervision

-TOR setting out the study developed and approved.

- 9 NGO focused seminars were conducted throughout the 9 Provinces aimed at introducing the CPA and generate interest towards accreditation as consumer protection groups. 108 individuals participated.

-An analysis was conducted to ascertain the state of readiness for NGO to render services in line with the provisions of the CPA. A was questionnaire developed and site visits to 29 NGOS to conduct a configuration analysis. A Database of 196 NGO was developed as possible to act as CPGs in terms of section 77 and 78 of CPA. A report on the “State of Readiness of NGOs was completed and capacity building programs recommended.

-Letters were drafted and forwarded to 114 NGOs to raise awareness of the accreditation process.

Target revised. Upon completion of the report it was realized accreditation may be premature in view of the limitations identified within the NGO sector.

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Protect Consumers from unethical business practices and misconducts through law enforcement and compliance Protect Consumers from unethical business practices and misconducts through law enforcement and compliance

Measure 3.1 Number of industry identified for investigations

Three industries. Medical and pharmaceutical:Medical Aid Schemes(Ensure compliance with the CPA

Open Medical Aid Schemes The aim of the Investigation was to determine whether the medical scheme rules of various medical aid schemes as well as membership application forms/contracts provided for in terms of Section 29 of the Medical Schemes Act 131 of 1998 are in compliant with the provisions of the Consumer Protection Act 68 of 2008 by conducting an in-depth analysis into those rules and membership application forms/contracts. Top 4 Open medical schemes were analysed:-FedHealth Medical Scheme-Bonitas Medical Fund-Momentum Health Medical Scheme -Medshield Medical Scheme RulesMeeting held with Department of HealthMeeting held with Council for Medical Schemes- agreed that all schemes to align with CPA- SteerCo being established to develop Industry Code recommendations on the Open Medical Aid Scheme Investigation Consulted with sector regulator(Council for medical Aid Schemes Process of referral to Equality Court under way

Submitted Analysis of the top 4 closed medical Aid Scheme-BANK and Compliance Notice MED , POLMED , TRANSMED and GEMS

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Protect Consumers from unethical business practices and misconducts through law enforcement and compliance

2. Information and Communication Technology(Ensure compliance with the CPA)

Mobile and Fixed-Line Subscriber Agreements Compliance with the CPA -Conducted an investigation into subscriber agreements –at the end of the investigation Issued (5) five Compliance Notices to MTN; VODACOM; CELL C TELKOM 8.ta and TELKOM Giving directive for compliance with the CPA -Revised terms and conditions issued to consumers To ensure 100% compliance – the Compliance Notices still stand Pay TV -Investigation into Pay TV Subscriber agreements Concluded Issued Compliance Notices to MULTICHOICE and Top TV -Revised terms and Conditions issued to consumers -Analysis of the revised terms and conditions to be finalized in 2012/13 Financial Year Mobile operators Compliance with section 63 -7 Identified 7 ICT entities that have terms and conditions for Data Bundle service that provide for a shorter expiry period than that the one three years envisaged by the Act. Entities Identified- G-Connect, Vodacom, MTN, FNB Connect, I BURST and Telkom -8ta •IBURST – Comply•G-Connect- requested extension TO COMPLY •FNB Connect – revised policy – Comply •Cell C,MTN ,MTN and Vodacom – On going

Target achieved

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SOUTH AFRICAN BROADCASTING CORPORATIONS

-Investigation into the SABC terms and conditions completed

The investigation by the NCC revealed that the SABC had previously not developed and disclosed television license terms and conditions to all television licensee. Contrary to the manner and quality that such licensees are generally entitled to expect.

The Television license terms and conditions where then jointly developed by the SABC and NCC,

The NCC Recommended that

The SABC to publish the said television licence terms and conditions mentioned herein before on its website

bring the said terms and conditions to the attention of all television licensees;

-The Commission has sent a copy of the draft consent agreement in order to conclude the investigation

Target achieved

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3.Retail and Manufacturing sector Compliance with the CPA

48 Sample inspections, in and around Pretoria. Sections of the Act that the NCC focused on were: -Disclosure of prices of goods and services in terms of section 23;-Consumer’s right to return goods in terms of section 20 read together with section 56.-Lay – byes in terms of section 62 and regulation 34; -Disclosure of reconditioned or grey goods in terms of section 25Compliance letters sent to companies PRODUCT SAFETY RECALL GUIDELINES FINALISED •Comments assessed •Revised guidelines finalized GENETICALLY MODIFIED ORGANISMS •Compliance with section 24(6) and regulation 7 of the CPA ,0•The Commission establishing a task team comprising of : •The Department of Trade and Industry •The Department of Agriculture Forestry and Fisheries •The Department of Health •The Department of Science and Technology To develop GMO guidelines

Target

achieved

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Measure 3.2. Percentage of investigate complaints(filed cases by the ncc) successfully

50 – 60% of the cases.

The years started with a huge matter of City of Johannesburg fought at the NCT. Although the tribunal rules against the NCC on technicality, consumers saw value out of that process because the City is now attending conciliations regularly where many matters are settled. There has been a marked attempt to avoid having too many matters on the roll of the Tribunal for litigious purposes simply because the NCC runs its own Litigation Department and only out-source less than 2 percent of the work. Most of the matters that are currently pending before the Tribunal are only with regards to points in limine that are raised by business sector and not substantive issues of compliance. The NCT has found in favour of the NCC on the MTN Matter only in as far as point in limine is concerned. We still waiting for a ruling in the Vodacom matter also on a technical point and the Cell C matter is resuming on the 19th June 2012. The Multichoice and Top TV ruling was that the consultation with the Regulatory authority was not sufficient and we have to do it again. BMW matter we still await a ruling on application for consolidation and all others are still to be set down.We have issued 28 applications for default judgments.Business in most of these matters have come back to the NCC and said they needed to talk to us more on issues that are pending before the tribunal. Most have made further serious changes to their contracts and litigious issues are being minimized. Consumers have seen value of out of these processes because contracts have been amended substantially and refunds policy is working well for consumers As stated, although many of these matters are pending before the Tribunal, we are in constant talks with business sectors and many concessions are being made with regard to compliance. Many issues have been resolved and levels of compliance have gone up by more than 80%. The issues that remains for example in the medical scheme sector is the issue of discrimination of pregnant woman and premium payable by the elderlies, in the ITC sector is the forfeiture of airtime, in the broadcast sector is the issue of product bundling and airline industry is the issues of differences between delayed and cancelled flight. In the transport sector forfeiture of money paid in advance for trips

>90% of the projects completed. There has been a slow pace from the Tribunal in setting matters down and a slow pace in getting judgments. Many matters are still pending

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Measure 3.3Percentage of investigated complaints timely finalized

>90% GAUTRAIN –

Investigation into the Compliance with section 63 of the CPA

Gautrain requested seven months to comply with section 63 or more time to apply to the Minister of Trade and industry for a stay in the issuance of compliance notices by the Commission

Road Transportation

The Commission discover that the 449 bus companies policies on refunds do not comply with the provisions of section 63(2)

Interactions with SABOA , and the Department of Transport and individual entities to continue in the next financial year

Target

achieved

Measure 3.3Percentage of investigated complaints timely finalized

>90% SANRAL The Commission Analyzed the terms and conditions of E tag , against provisions of the Consumer Protection Act 68 of 2008 and found that about eighteen (18)Clauses were in contravention of the provisions of the CPA-The Commission held consultation meetings with the Board of SANRAL -As well as a workshop on the analysis by the Commission to clarify the Commission’s concerns about the terms and conditions of Etag -SANRAL has amended its terms and conditions to comply with the CPA -Outstanding issues of Tariffs to be addressed with the Department of Transport

Target

achieved

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Measure 3.4 Clarification and advisory opinions

Approved guidelines Hundreds of consumer have received legal advice from our highly under-resourced legal department One can simply say that the achievement is 100% because as indicated, no consumer walk in and is not provided with an advisory opinion The plan was and still is to have a system where we are able to record all the opinions that we provide to hundreds of consumers telephonically and walks in everyday but we do not have a system to date. Most consumers who ask for opinions simply come and they are attended to and some ultimately lodge and some do not.

Target achieved.

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Measure 3.5 Number of industry codes in terms of sec 93(1) of the CPA (I) Use of plain language (II) Standard means of communicating (III) Alternative dispute Resolution

3 Guidelines on Code of good practice and plain language in terms of section 93 developed and approved by the Commissioner The codes have been completed and published for public comments

Target met

3.6 Number of Industry Codes of Conduct in terms of section 82

3 Industry codes of conduct.

The codes have been published for public comments

Target achieved

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CONDUCT RESEARCH FOR POLICY LEGISLATION

Conduct

research for

policy,

legislative and

regulatory

improvement

Measure

4.1: Number

of consumer

research

studies

conducted

3

CONSUME

R STUDIES.

During this financial year the Research Division completed

three (3) Consumer Research Studies. These three

Consumer Research Studies are on:

Vulnerable Consumers; Lower LSM; and Upper LSM.

The Division used the Consumer Affordability Index to

conduct these Consumer Research Studies. The Consumer

Affordability Index is an instrument that tracks the ability of

consumers of various socio-economic groups to afford

proposed or announced increases of certain essential goods

and services without incurring financial difficulties or without

risk of undesirable consequences. The Consumer

Affordability (CAI) Index was divided into three studies for

vulnerable consumers, for lower LSM and for upper LSM

respectively.

CONSUMER RESEARCH STUDY 1: VULNERABLE

CONSUMERS

Consumer Research Study on vulnerable Consumers is

covered by a report on Quintile 1 of the CAI. It was

concluded in this study that quintile 1 consumers are the

ones most affected by the rise in prices especially for basic

food stuff. This quintile is the most vulnerable and their only

means of income are the social grants.

Target

achieved

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CONSUMER RESEARCH STUDY 2: LOWER LSM

Consumer Study on lower LSM is covered by a research that deals with

Quintile 2 and Quintile 3 of the CAI.

The Global Economic Crisis exerted a notably negative impact on the

ability of households in the lower LSM group. To be specific for this lower

LSM group, affordability of their different basket of goods and services

decreased by 10% between the beginning of 2008 and 2009. By the

middle of 2009, the baskets were 4% less affordable than the average for

2008 as a whole. There was a sharp dip in relative affordability between

May 2011 and July 2011 and a slight recovery thereafter. In conclusion,

the study revealed that the lower LSM group was hit very hard by the

economic depression as compared to the upper LSM as will be shown

below.

CONSUMER RESEARCH STUDY 3: UPPER LSM

Consumer Research Study on the Upper LSM is covered by Quintile 4

and Quintile 5 of the CAI. The report concluded that the upper LSM group

is not affected negatively by the Global Economic Crisis. The research

further highlights that increase in price of regulated prices and food does

not affect the upper LSM group negatively, this group can easily afford all

baskets that it afforded before and during the recession.

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Measure

4.2:

Industry

research

3 SECTOR

INDUSTRIES

During this financial year the Research Division completed three (3) sector industry

researches in the following sector industries:

Airline Industry Banking industry; and Auction Industry

INDUSTRY 1: AIRLINE

We did an industry research on the Airline Industry. We did a research to find out if

the terms and conditions of the contracts of the airline industry are in line with the

sections of the CPA. The study was completed and it was found that the contracts

of the airline industry are not in line with the sections of the CPA.

INDUSTRY 2: BANKING

During this financial year, we also did an industry research on the banking industry.

In this research the focus was on the ATM fees and charges for the returned debit

orders. The study concluded that disclosure of the ATM fees is inadequate and is

contrary to Section 23 of the CPA. We also made a research to find out if there is

any justification for the high bank charges for the returned debit orders or not. The

industry research was completed on time and it was found that there is no

justification for the high charges paid for returned debit orders.

INDUSTRY 3: AUCTION

During this financial year. We also did an industry research study on the Auction

Industry. The research was triggered by the complaint lodged about Auction

Alliance during the auction held in Stellenbosch on 10 December 2011. Our

research was about the use of Ghost bidders in the Auction Industry. It was

concluded that indeed Auction Alliance used a Ghost Bidder in the particular

auction and we issued a Compliance Notice to reverse the auction in compliance

with the CPA.

Target

achieve

d

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Measure 4.3:

Conducted

testing on

products

identified as

hazardous to

consumers

Number of products to

test established

During this financial year the Research Division

tested the Trust Condoms that a Consumer bought

from Pick n’ Pay. We took the condoms for testing

at the SABS. The SABS concluded that there is

nothing wrong with the condoms.

Target

achieved

Strategic Objective 5: Customer and Stakeholder Relationship Management

Measure 5.1 Number formalized MOUs/SLAs with Stakeholder Groups

MOUs/SLAs formalized with stakeholders 3 NGOs

- Draft MOU’s with the National Consumer Forum, SA National Consumer Union and Consumers International developed and approved. Meeting held with NCF with regards to cooperation.

Target Achieved

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7 Regulators. The Memorandum were prepared and sent to eight Regulatory Authorities: MOU with Icasa, EAAB, NERSA, NPA, SABS, SARS, NRCS and ASA done and sent for signature to all of them.

Target Exceeded

MOU`s/ SLA`s formalized with stakeholder 7 regulators ,

Concluded MOUs with -SABS and the Competition Commission in order to give effect to section 97(1)b of the Consumer Protection Act 68 of 2008 .which provides that - The Commission may negotiate agreements with any regulatory authority to- Coordinate and harmonize the exercise of jurisdiction over consumer matters with the relevant industry sector-To ensure the consistent application of the principles of the CPA THE SABS,The organization established in terms of the Standards Act 24 of 1945 continuing to be in existence in terms of Act 8 of 2008 to provide standardization, conformity assessment, inspection training and all certification services in its jurisdiction; and Rational e for the MOU Cooperation is Areas of amongst others , Testing to give effect to the Consumer’s rights to safe and good quality goods Implied warranty of quality Competition Commission The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy

Target Achieved

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National Prosecuting Authority –The Act provides that ; the Commission may refer matters to the NPA -During the year under review the Commission met with the Director of National Public Prosecutor and established referral protocols -critical input acquired for prosecution strategy in collaboration with relevant stakeholders. Collaborated with the South African Police services , the Estate Agency Affairs Board on the Auction Alliance Investigation Requested the SABS to assisting with the opinion on a complaint by Jooste v/s Caster Ladders And requested the SABS to conduct a test on the quality of the leather seats on the complaint by Sicwetsha v/s Volvo SA SARS –NCC collaborated with SARS in the issuance of compliance notices at the ports to ensure enforce Section 24 of the CPA (Product labeling provisions)

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Ensure the establishment of a functional organization

Ensure the establishment of a functional organization

Measure 6.1Developed policies with standard operating procedure (including corporate values)

All critical policies with SOPs in line with best practices

Approved and implementation of HR policies and standard operating procedures, policies are on the implementation phase

Target Achieved

Measure 6.2

A functional NCC organization envisaged in the Act

Approved structure in line with the strategy and best practices

Operational structure approved

Target Achieved

Achieve the mandate of the NCC with an optimal staff complement

Measure 7.1 Ratio of female appointments versus male

50%

57% of employees are females in the NCC.

We have exceeded our predefined target by 7%

Target Achieved

Measure 7.2 Percentage of persons with disability working for the NCC

1% 2% Target Achieved

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Measure 7.3 Specialist or expert employees recruitment (according to the NCC organizational structures)

The Organization have identified the special skills required within the organization to optimize the performance of the organization such as statistician, Engineers,

The specialized skills where acquired although it was for a short term basis on contract.

Duration was shortened because we couldn’t afford to have them full time due to budget. We have acquired Conciliators, and the economic expert to do a study on the banking industry

Target Achieved

Implement an organization-wide performance management system

Measure 8.1Number of employees with performance contracts

100% No employees entered into a performance agreement for the last financial year

Varience: the minister failed to sign Commissioner’s performance contract.

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Measure 8.2 Number of employees completing sponsored training

Skills audit report

Due to financial constraints and as a new organization we needed to begin to build an organizational team and established a performance culture, and the approach was to conduct a climate survey and go on employee team building

Varience: the target was changed and replaced with a new target due to operational requirements i.e climate survey.

Create the brand of the NCC as South Africa’s consumer voice

Measure 9.1: Brand Awareness Index ( consumer voice) link with ADR

40% Band awareness

-A survey was conducted in Sunnyside and Irene shopping malls to establish the awareness rate of South African able to associate the NCC brand as the country’s consumer voice.

- Findings reveal that at least 36 % of those interviewed could associate the NCC brand with the work that the Commission does. This is despite the brand having not been launched nor a campaign undertaken around the brand.

-Report report developed and approved.

Target Achieved.

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Measure 9.2: Number of media Briefings/engagements

8 Media Briefings

Written Media responses:

-The New Age: Successes and Challenges since NCC inception

-Rapport: ADSL Bundling

-Cape Argus : Status of the NCC

-Strategic Marketing issues : The NCC

-Independent Newspapers : Groupon Type Business Model

-e-tv : NCC Investigations

-Fox International Channels :Multi Choice and Top TV: Terms & Conditions

-SABC: TV License terms & conditions

-Sunday Times: False advertising (grading)

-Sunday Times: Promotional Competitions

-Sunday Times: Bundling in the Medical Professions

-Sunday Times: Bundling of Goods

-

Targets Exceeded

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The Star newspaper: E-tag: Terms & Conditions

-SABC : Unreasonable cancellation penalty

-SAFM :Billing Charges: Vodacom

- Mail & Guardian: Opt out Register

- Capricorn FM: Mobile phone Contract

- Sunday Times: Court Application SANRAL

-Sunday Times: Promotional Competitions

-IT Web: Bundling and Pay TV service Providers

Media Interviews: Electronic: e-TV ;Radio 702 ; Ilungelo Lakho ; Legwala-gwala ;Carte Blanche; SAFM; Radio 702 ;Lesedi FM; Kaya FM; Motsweding FM; Carte Blanche ; SABC News; Umhlobo Wenene; Radio 2000, CNBC Africa; Fin24; e-TV 24. Morning live.

Print: Sunday Times ;BHF COSA Media ;The Times; The New Age ;Mail and Guardian ;Rapport ;IT Web; The Commuter Magazine ;Information on Consumer Expenditure (SARS); Business Day ; Business Report ; House Check; All 4 woman; Mail and Guardian ; Pretoria News; Cape Times; City Press; The Star ; Money Web; Financial Times; Sowetan; Drum Magazine; Independent Newspapers; Financial Mail; Move Magazine, Commuter SA; Consumer Fair Magazine. Media Conference State of the NCC as at December 2011.Auction Alliance

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Provision of an effective ICT Infrastructure

Measure 9.3: NCC Service Charter

NCC Service Charter

Service Standards set for customers interfacing with the NCC and charter developed and approved

Target Achieved

Provision of an effective ICT Infrastructure

Measure 10.1Availability of information technology system

35% of all systems should be available.

Server Room completed.LAN and VOIP phones are functional.Website is live.DRP has been developed.No intranet.Payroll and Financial systems implemented.

Budgetary constraints hindered development of Intranet.Website is managed by Service Provider without NCC.

Measure 10.2 Consumer satisfaction rate finding NCC information technology useful

Over 75% of consumers finding the NCC useful

Report on Advocacy reveals 72% find it useful and 92 % would attend its forums.

Advocacy report is used for research until a new web based research tool is in place.

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Implement an effective and efficient financial management system

Implement an effective and efficient financial management system

Measure 11.1 Audit report (Auditors financial statement audit result)

Unqualified Audit

Financial policies have been adopted by MANCO and approved. Continuous monitoring is in place to ensure that the NCC is up to date with standards. Accpack financial system is up and running.

Target Achieved

Measure 11.2 Percentage of the NCC Divisions with effective risk-based internal controls

100%

Risk assessment has continuously been done by the Risk Manager to check effectiveness of internal controls. Internal Audit has been outsourced to identify weaknesses and enhance internal controls. Risk strategy has been developed

Target Achieved

Documents

TRADE AND INDUSTRY PORTFOLIO COMMITTEE PRESENTATION 11 October2012 Presenter :Ebrahim Mohamed Acting Commissioner ;NCC 1