annual report briefing to the portfolio committee on transport (pcot) 15 october 2014 by sipho g....
TRANSCRIPT
Annual Report Briefing to the Portfolio Committee on Transport
(PCOT)
15 October 2014by Sipho G. Khumalo
Presentation Outline
• Vision and Mission• Mandate and Strategic Imperatives• Cross border environment• Review of Organisational Performance• Progress on Strategic Projects• Strategic Partnerships• Development & Empowerment Programmes• Employment Equity• Financial Information• Audit Outcomes 2013/14 • Looking into the future• Key Challenges and Intervention Areas• Concluding Remarks
Vision and Mission Vision
To be the leading cross-border road transport Agency within the region
Mission
To spearhead social and economic development within the SADC region through facilitating unimpeded cross border road transport
Strategic Outcome Oriented Goals
Enhance organizational Performance
Facilitate Unimpeded flow of Cross Border Transport
Promote Regional integration
Promote safe and reliable cross-border transport; and
Strategic positioning to enhance organizational Sustainability
Mandate & Strategic Imperatives• To eliminate impediments in the flow of passengers and freight by road
across regional borders
• To introduce regulated competition in cross-border passenger transport
• To liberalise market access in the cross-border freight transport
• To reduce operational constraints for the cross-border road transport
industry
• To enhance and strengthen the capacity of public sector; and
• To build industry partnership and to empower the cross-border road
transport industry.
Established in terms of Act No. 4 of of 1998
iCross border environment
ORGANIZATIONAL PERFORMANCE2013/14
Review of Organisational Performance
PERFORMANCE TARGETS
NUMBER OF
INDICATORS
% OBTAINED
65% of the targets set were achieved, representing an overall performance improvement of 17% from the previous financial year
Performance targets fully achieved (100%) 40 100% and above
There was significant progress on many other indicators during the financial year. Recovery plans were put in place in some areas.
Review of Organisational Performance
Key achievements:Increase in industry development programmes implemented to support cross-border operators.Completed 8 route surveys in Zimbabwe, Zambia, Malawi, Botswana, Mozambique, Swaziland, Lesotho and Namibia – this will form basis for scientific tool improvement to regulate the cross-border market. (To assist decision on split between taxis and buses – to inform on number of permits to be issued per corridor.Launched Cross-Alive Road Safety campaigns in support of the UN Decade of Action for Road Safety.Entered into partnerships with key strategic stakeholders who play a critical role in the cross-border industry: (Department of Trade and Industry, Department of Tourism, Department of International Relations and Cooperation, Department of Home Affairs, Department of Environmental Affairs, South African Revenue Service.Formalised relationships with other stakeholders.
Review of Organisational Performance -Law Enforcement
WORK ACTIVITY 2012/13 2013/14 DIFFERENCE % MOVEMENT
YEAR-ON-YEAR
MOVEMENT
Vehicle Inspections 132,372 211,798 79,426 60%
Prosecutions 15,384 29,411 14,027 91.2%
Compliance Rate 88.79% 81% (7.79%) (8.77%)
Review of Organisational Performance -Permits Issued
WORK ACTIVITY 2012/13 2013/14 % MOVEMENT
YEAR-ON-YEAR MOVEMENT
Total Permits issued 75 000 80 034 6.7%
PERMITS ISSUED PER CATEGORY
Passenger transport - Taxi 10 539 11 095 5.30%
Passenger Transport - Buses 3 144 2 781
Freight transport 55 053 63 935 16.10%
Tourist transport 1 682 2 213 31.50%
Permits Issued for Passenger Transport (Taxi)
Permits issued per country during 2013/14Permits issued in 2012/13 and 2013/14
Country 2012/13 2013/14 %Movement
Botswana 339 437 28.90%
D.R. of Congo 0 4 400%
Lesotho 2,968 2,718 (8.40%)
Malawi 2 20 900%
Mozambique 4,332 4,390 1,30%
Namibia 79 154 94.90%
Swaziland 453 422 (6.80%)
Zambia 40 35 (12.50%)
Zimbabwe 2,312 2,882 24,60%
Cabotage 14 33 135%
Total 10,539 11,095 5.30%
Country 2012/13 2013/14 %Movement
Botswana 100 484 384%
D. R. of Congo 23 14 (39%)
Lesotho 595 506 (14.90%)
Malawi 127 167 23.90%
Mozambique 631 542 (14.10%)
Namibia 110 53 (51.80%)
Swaziland 182 73 (59.80%)
Zambia 77 65 (15.60%)
Zimbabwe 1,299 877 (32.50)
Permits Issued for Passenger Transport (Buses)
Permits issued in 2012/13 and 2013/14 Permits issued per country during 2013/14
.
Country 2012/13 2013/14 %Movement
Botswana 7,769 8,180 5.30%
D.R. of Congo 4,950 3,328 (32.70%)
Lesotho 4,315 4,026 (6.70%)
Malawi 1,322 1,814 27.10%
Mozambique 8,463 10,625 25,50%
Namibia 5,800 6,234 7.50%
Swaziland 5,357 5,281 (1.40%)
Zambia 8,574 13,721 60%
Zimbabwe 8,432 10,666 26.50%
Cabotage 71 60 (15.50%)
Permits Issued for Freight Transport
Permits issued in 2012/13 and 2013/14 Permits issued per country in 2013/14
Permits Issued for Tourist Transport
2012/2013 2013/2014%
Movement
Regional 1,682 2,213 31.50%
CHANGING GEARS
STRATEGIC PROJECT
PROJECT OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Strategic
Value
Proposition
Plan
To outline the
future strategic
value of the
Agency within
the transport
industry
• Situational analysis
completed
• Industry
environmental
scanning and
stakeholder
engagements on-
going; and
• Integration of all
strategic projects.
• Present a plan to DoT and the
Minister of Transport (Shareholder
with defined roles and strategic
value propositions for the Agency in
the cross border industry;
• Support the DoT in drafting
legislation that may be required to
change the mandate of the C-BRTA;
• Progressive implementation of the
Strategic Value Proposition Plan in
the cross border industry.
Progress on Strategic Projects (1)
CHANGING GEARS
STRATEGIC PROJECT
PROJECT OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Operator
Compliance
Accreditation
Scheme (OCAS)
Accreditation of
cross-border
operators based
on their risk
profiles to reduce
transit delays.
• Identifying the key OCAS
system requirements;
• On-going technical
stakeholder engagements;
• Benchmarking and tailoring
completed;
• Draft Design Framework of
OCAS governance approved
by Regulatory Committee;
and
• Development of business
rules.
• Strategic stakeholder
engagements with the
regional stakeholders to
formally adopt OCAS at a
regional level;
• Piloting – 2016.
Progress on Strategic Projects (2)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS TO DATE FUTURE PLANS
Market Access
Regulation
(MAR)
Scientific
determination
of supply and
demand within
cross-border
corridors.
• Draft Market Access
Regulation Model finalised;
• The MAR Model has been
expanded to cater for six (6)
major cross border routes
and is scheduled has been
completed.
• Pilot and refine the MAR
model in 2014/15; and
• Fully implement the MAR
tool from 2015 onwards.
25
Progress on Strategic Projects (3)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS
TO DATE
FUTURE PLANS
Business Case
for corridor and
cross- border
management
reforms
To define the
role of the C-
BRTA in border
management
and corridor
management
reforms.
Project
Completed
• Engage cross border industry stakeholders
on proposed corridor and border
management reforms and impact, 2014/15;
• Feasibility study on the recommended
corridor and border management reforms.
• Share findings and recommendations with
key stakeholders
• Development of implementation plans
Progress on Strategic Projects (4)
CHANGING GEARS
STRATEGIC
PROJECT
PROJECT
OBJECTIVE
PROGRESS
TO DATE
FUTURE PLANS
Industry
Partnership
Development
Plan (IPDP)
To create
mutually
beneficial
partnerships
with industry
stakeholders
Stakeholder
mapping
Completed
C-BRT
stakeholder
forum
launched
• Build strong stakeholder relationships and
partnerships in the cross border industry
aimed at reducing operational constraints; and
• Drive initiatives on the development of
SMMEs and empowerment of the historically
disadvantaged individuals.
Progress on Strategic Projects (5)
REGIONAL: SADC Secretariat, Joint Committees, Joint Route Management Groups (JRMGs);
NATIONAL: Participation in Border Control Operational Coordinating Committee (BCOCC), Inter-Agency Clearing Forum (IACF), Department of Home Affairs (DHA), South African Revenue Service (SARS); National Intelligence Coordinating Committee (NICOC), National Joint Operational and Intelligence Structure (NATJOINTS);
PROVINCIAL: Transport MECs, HODs (Provincial Transport Departments);
LOCAL LEVEL: Metros and Municipalities;
Strategic partnerships (1)
INTERNAL: Route Committees, Operator Forums, Stakeholder Forums, Joint law Enforcement Initiatives, SMME development initiatives
Strategic partnerships (2)
Development of a Women-In-Transport programme aimed at introducing women operators to cross-border road transport.
On-Going SMME Development Programmes for aspiring Cross-Border Operators.
Training of inspectors on the C-BRT Act, Administrative Adjudication of Road Traffic Offices (AARTO, National Land Transport Act (NLTA), Professional conduct and law enforcement.
A significant number of senior management (8) within the Agency attended and successfully completed a Senior Management Development Programme.
Development & Empowerment Programmes
HUMAN RESOURCES
Employment Equity
RACE GENDER
FINANCIAL OVERVIEW
Financial Performance 2013/142012/13 2013/2014
REVENUE
Permit Income R165,93m R96,46m
Penalty Income R20m R35,05m
Other Income R2,40m R 3,33m
Interest Received R4,92m R 5,98m
EXPENSES
Employee Costs R101m R118m
Operating Expenses
R57,58m R69,01m
SURPLUS / (DEFICIT)
R34,50m (R46,52m)
Financial Position 2013/14
ASSETS LIABILITIES
2012/13 2013/14
CURRENT ASSETS
Receivables R3,81m R3,91m
Cash and Cash Equivalents
R125,46m R120,31m
NON-CURRENT ASSETS
Property, Plant and Equipment
R8,27m R7,97m
Intangible Assets R1,15m R1,67m
TOTAL ASSETS R138,68m R133,86m
2012/13 2013/14
CURRENT LIABILITIES
Lease obligations R0,68m R0,52
Payables R18,20m R55,46m
Provision R9,06m R13,75m
NON-CURRENT LIABILITIES
Retirement benefit obligations
R1,65m R1,56m
TOTAL LIABILITIES R29,59m R71,28m
ACCUMULATED SURPLUS
R109,10m R62,58m
Irregular, Fruitless & Wasteful Expenditure
2011/12 2012/13 2013/14
Fruitless and Wasteful Expenditure
R456, 823 R11, 689 R2,224
Irregular Expenditure R14, 265, 818 R920, 010 R827, 753
Fruitless & wasteful expenditure relate to interest paid to Telkom on overdue accounts.
Irregular expenditure relate payment on month to month contracts entered into for regional office accommodation and security in the previous financial years .
AUDIT OUTCOMES
Audit Outcomes - 2014 Outcomes
Audit Opinion Unqualified audit opinion No material audit adjustments to the annual financial
statements
Emphasis of matter
Funding of Operations – Court action was instituted by cross-border hauliers, challenging the new fees for cross-border road transport permits, which was effective from 01 April 2011. The outcome of this court action might have an impact on C-BRTA’s ability to generate the budgeted revenue levels.
Conclusion on pre-determined objectives
Usefulness of reported performance information: - 50% of Strategic Support targets and indicators were not
verifiable Reliability of reported performance information
- Significant targets within Road Transport Inspectorate and Strategic support were not reliable when compared with reported information.
Audit Outcomes – 2014 - continue
Outcomes
Compliance with legislation
Contract management ineffective resulting in irregular expenditure
2014/15 & BEYOND
Looking into the Future (1)
Introduction of the Operator Compliance Accreditation Scheme within S.A. and the SADC region
Implementation of Operator Value-Orientated Strategy. Need for protection of S.A. domestic operators in regard to
conditions obtaining in our neighbouring countries – need for review of Bilateral Agreements & implementation of the SADC Protocol.
Harmonization of Regulatory Systems between the C-BRTS & OLAS. Need to focus on the funding model as it is evident that the current
model is not sustainable.
Looking into the Future (2)
Need to develop the capability and competency for addressing the question of un-roadworthy cross-border vehicles and the review of SADC vehicle standards.
Strengthening Partnerships with the South African Revenue Service (SARS) and other Border Authorities.
Appreciating the changing dynamics in border towns and the need to respond to provincial imperatives (on-going engagements with Provinces).
Refining the work of the Profiling unit to provide intelligence to support the cross-border transport industry.
Achieve a clean audit opinion (clean administration)
KEY CHALLENGES
Key Challenges & Intervention Areas
Resolution of the Lesotho/Free State Cross Border passenger transport issue.
Provision for dealing with overloaded cross-border vehicles (below 3.5 tons) and use of bus trailers for the transportation of goods.
On-going litigation on the increased permit tariffs in 2011 and the newly increased tariffs in 2014.
Concluding Remarks
The Agency is poised to support the National Development Plan by championing objectives articulated in Chapter 3 (Gaining Global Market Share & S.A. as an integral part of regional growth); Chapter 4 (Regulation and Transport); and Chapter 7 (Positioning S.A. in the globalising world) of the NDP.
Going forward, the C-BRTA is gearing towards developing and implementing an “Operator Value -Orientated Strategy”
The C-BRTA is geared to demonstrate its commitment to adding public value through its strategic interventions.
All future plans are aligned to the Medium Term Strategic Framework (MTSF) 2014-2019 objectives.
i thank you