Presented by SG Khumalo

Presentation Outline

• Part 1: The Mandate and Strategic Goals

• Part 2: Review of Performance in the FY11/12

• Part 3: Annual Financial Statements and Audit Outcomes

• Part 4: Challenges and Interventions

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Mandate

The C-BRTA was established by the Cross-Border Road Transport Act 4 of 1998 to provide for co-operative and co-ordinated provision of advice, regulation, facilitation and law enforcement in respect of cross-border road transport by the public and private sectors.

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Legislated MandateLegislated MandateThe functions as per the legislated mandate are as follows:To improve the unimpeded flow of freight and passengers in the region;To introduce regulated competition in respect of cross-border passenger road transport;To reduce operational constraints for the cross-border road transport industry as a whole; To liberalize market access progressively in respect of cross-border freight road transport;To enhance and strengthen the capacity of the public sector in support of its strategic planning, enabling and monitoring functions;To empower the cross-border road transport industry to maximize business opportunities and to regulate themselves incrementally to improve safety, security, reliability, quality and efficiency of services.

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Core Functional AreasCore Functional AreasThis role is carried out through the following functions:Facilitation - ensures that consultations and partnerships with other key role players within South Africa and SADC are fostered and maintainedLaw Enforcement - monitors the carriers through country-wide inspections and ensures that carriers operate within the prescribed legal parametersRegulatory - responsible for the issuing and facilitation of all cross border permits Advisory - advises the Minister of Transport and the DoT on regional road transport imperatives and challenges. This function also monitors and counteracts any restrictive measures that may be implemented by other states in the SADC region.

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Strategic goalsStrategic goals Goal 1: Strategic positioning to enhance organisational

sustainability;

Goal 2: Facilitate unimpeded flow of cross-border transport;

Goal 3: Promote regional integration;

Goal 4: Promote safe and reliable cross-border transport; and

Goal 5: Enhance organisational performance.7

Strategic ProjectsStrategic Projects The following key projects are the key drivers of our

strategy and dependent on collaborative partnerships:

Strategic Value Proposition Plan (SVPP); Industry Partnership Development Plan (IPDP); Operator Compliance Accreditation Scheme (OCAS); Business Model for Streamlining Border

Management Practices; and Market Access Regulation (MAR).

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Review of Performance in the FY11/12Law Enforcement

WORK ACTIVITY 2011/12 2010/11 DIFFERENCE

PERCENTAGE

Vehicle Inspections 124 624 65 400 59 224 91%

Prosecutions 11 549 15 486 (3 937) (25%)

Compliance Rate 91% 76% 14% 14%

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Review of Regulatory Permits FY11/12WORK ACTIVITY 2011/12 2010/11 PERCENTAG

E

Total Permits issued 71 100 94 133 (25%)

PERMITS ISSUED PER CATEGORYPassenger transport -Taxi 11 950 11 979 (0.24%)

Passenger Transport – Buses 2 367 3 409 (31%)

Freight transport 54 827 76 844 (29%)

Tourist transport 1 956 2 358 (16%)11

Taxi Permits Issued – per Country Taxi Permits Issued – per Country 2011/20122011/2012

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Table 2: Permits issued for passenger transport (buses)

Country 2010/2011 2011/2012 % Movement

Botswana 211 36 (83%)

Democratic

Republic of Congo

3 23 667%

Lesotho 712 468 (34%)

Malawi 251 207 (18%)

Mozambique 668 399 (40%)

Namibia 73 113 55%

Swaziland 138 17 (88%)

Zambia 86 115 34%

Zimbabwe 1 267 989 (22%)

Total 3 409 2 367 (31%)

Bus Permits Issued – per Country 2011/2012Bus Permits Issued – per Country 2011/2012

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Table 4: Permits issued for tourist transport

Country 2010/2011 2011/2012 %

Movement

Regional 2 328 1 956 (16%)

Table 3: Permits issued for freight transport

Country 2010/2011 2011/2012 % Movement

Botswana 12 667 8 785 (31%)

Democratic Republic

of Congo

4 779 4 275 (11%)

Lesotho 6 469 4 423 (32%)

Malawi 1 797 1 130 (37%)

Mozambique 10 064 7 351 (27%)

Namibia 7 934 5 680 (28%)

Swaziland 9 344 5 899 (37%)

Zambia 8 727 8 154 (7%)

Zimbabwe 11 676 8 426 (28%)

Cabotage 3 387 704 (79%)

Total 76 844 54 827 (29%)

Freight Permits Issued – per Country 2011/2012Freight Permits Issued – per Country 2011/2012

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Employment Equity per Race

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Employment Equity per Gender

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Summary of Key AchievementsSummary of Key Achievements• Introduction of performance management system

across all organizational layers • Industry development strategy was developed and

approved.• Cross Border Operators Forum was initiated and

became operational • Visibility of road transport inspectorate was

significantly improved resulting in improved compliance

• Improved fraud and corruption detection and prevention interventions led to the seizure of fraudulent permits and arrests .

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Summary of Key AchievementsSummary of Key Achievements• Establishment of the Project Management Office (PMO) to

manage key strategic projects• Conducted a Study on the Model for Trade Supply Chain

Analysis: This model is part of the development of the business case for border modernization.

• Conducted a study on the analysis of business processes at the borders focusing on the freight supply chains at the two borders. The study focused mainly on the analysis of business processes, identification of impediments, international benchmarking, compliance checks and requirements, SARS customs modernization programme, etc.

• Assessment of South African transport corridors focusing on freight flows along the Durban-Lebombo (N4) and Durban- Beitbridge (N1) corridors was conducted

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Summary of Key AchievementsSummary of Key Achievements

• Report on the assessment of route utilization and impediments to passenger flow along the Durban-Lebombo and Durban-Beitbridge corridors was finalized:- The report talks to the passenger and driver impediments, route utilization and a model for market access.

• A report on liberalising market access for road freight was finalized.

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Highlights: Financial Performance2011/2012 2010/2011

INCOMEPermit Income R164.89m R42.50mPenalty Income R15.07m R15.76mOther Income R 3.15m R0.78mInterest Received R 2.45m R0.59m

EXPENSESEmployee Costs R70.75m R42.61mOperating Expenses R44.49m R25.46m

(LOSS) / SURPLUS R71.05m (R8.43m)24

Highlights: Financial Position

2011/2012 2010/2011CURRENT ASSETSReceivables R2,69m R2.15mCash and Cash equivalents R84.65m R3.01m

NON-CURRENT ASSETSProperty, plant and Equipment R7.57m R6.40mIntangible assets R1.07m R0.49m

TOTAL ASSETS R96.00m R12.06m

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Highlights: Financial Position 2011/2012 2010/2011

CURRENT LIABILITIESLease obligations R0,76m R0.55mPayables R12.57m R6.30mProvision R6.19m -

NON-CURRENT LIABILITIESRetirement benefit obligation R1.88m R1.66m

TOTAL LIABILITIES R21.40m R8.52m

ACCUMULATED SURPLUS R74,60m R3.55m26

Audit Outcomes AUDIT OPINION BASIS OF OPINIONQualified audit opinion

During 2010/11 there were inadequate systems of controls to satisfy completeness of penalty revenue and related receivables for the year ended 31 March 2011.

Therefore unable to determine the extent of the understatement of the opening balance of accumulated surpluses and receivables

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Audit Outcomes

EMPHASIS OF MATTERS DETAILSSignificant uncertainties The increase of permit tariffs which

became effective in April 2011 currently under litigation and still on-going as at reporting period

Restatement of corresponding figures

Comparative figures restated with errors identified during the reporting period – restatement of penalty revenue and related receivables

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Audit Outcomes COMPLIANCE WITH LAWS

DETAILS

Strategic planning and performance management

Revised strategic plan not approved by the Executive Authority

Annual financial statements

Correction of the annual financial statements subsequent to submission to the Auditor-General (mainly a change in accounting policy for permit revenue and bonus provision)

Procurement and contract management

Non-compliance with PPPFA and Practice notes in relation to quotations, preferential point system, advertisement of bids, etc.

Expenditure management

The agency incurred irregular expenditure of R14 million due to non-compliance with procurement prescripts and R456K in fruitless and wasteful expenditure

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Challenges and Interventions

KEY CHALLEENGESNormalisation of the Lesotho/South Africa Border Operations – this situation remains unresolved as at year end. However, concerted and renewed efforts were initiated leading to the formation of a Task Team and some progress made.

Audit qualification. The agency received an audit qualification for the current year audit. However, there is improvement in that the current year penalty revenue is not qualified, creating an opportunity to break the cycle of historical audit qualification.

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Challenges and Interventions KEY INTERVENTIONS

Action plans developed for all the significant audit findings with clear deadlines and responsible persons Developed and managing a dashboard of all the Audit findings to fast track the systematic resolution of these matters.Elevations of business performance, internal control and risk management through capacitation of the function Capacitating Internal Audit function Enhancing performance management systems and in-year monitoring Performance contracts of executives being amended to include key risks and findings identified in the audit report

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In ConclusionIn Conclusion

• The C-BRTA is geared to demonstrate its commitment to adding public value through its strategic interventions.

• This Agency is also poised to support the National Programme of Action of government of industrialization and job creation.

• The executive committee is geared towards breaking the cycle of audit qualifications

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i thank youi thank you

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