DIRCO 2014/15 ANNUAL REPORT

Presentation to the Select Committee

Mr Kgabo Mahoai

Deputy Director - General 11 November 2015

Presentation Outline

• Background

• Programmes performance information

• Financial Position as at 31 March 2015

• Conclusion

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Some Key Highlights

• African Agenda forms the backbone of our foreign policy objectives

• Recorded many success in pursuit of regional peace and stability as well as regional integration regional peace initiatives such mediation in Lesotho

• As Chair of the SADC Organ on Politics, Defence and Security Cooperation deepened democracy through supporting election observer missions in Malawi; Mozambique; Namibia: Botswana; Mauritius: Zambia and Lesotho

• Supported work on the SADC Free Trade Agreement which influenced signing of the SADC-East Africa Community Market for Eastern and Southern Africa Tripartite Free Trade Agreement

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Some Key Highlights• Used membership of AUPSC to the causes of poverty and

unemployment as drivers of violence and terrorism.

• Continued to manage our South-South relations in formations such as BRICS, IBSA, IORA and the G77+China to advance the African Agenda.

• Chairing the G77+China has enabled South Africa to position itself as the voice of developing countries on critical development issues facing the global community

• On the home front the Department has concluded its organisational review in order to streamline its work for the achievement of its strategic objectives

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Programmes performance information

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Programme 1: AdministrationAnnual targets Achievements

Compliance with corporate governance requirements for ICT: ICT Policy, Charter, Plan, Implementation Plan, Operational Plan

Adhered to two aspects of ICT Corporate governance: ICT Policy & Charter

100% network availability 97,37% network availability

100% consular assistance responded to as per the Service Delivery Charter

100% (1 047)of cases reported:Citizens in distress, Detainee/prisoners new cases, Mortal remains, Whereabouts, Parental child abduction, Extraditions, Service of process

100% of documents processed and legalized

100% (43 793) documents processed and legalised

100% compliance with 30-day payment period

98,25% compliance

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Programme 1: AdministrationAnnual targets Achievements

Vacant posts filled within four months after advertisements

Average turnaround time for filling of vacant posts was reduced to 5,3 months.

Percentage of signed SMS performance agreements

99,6% (279 of 280) of eligible SMS’s performance agreements for 2015/16 signed and filed by due date

100% lodged grievances handled within 30 days

21% (10 out of 46) of grievances handled within 30 days

100% of disciplinary cases finalized within 90 days from date of being initiated

28% (two out of 7) disciplinary cases finalised within 90 days

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Programme 1: AdministrationAnnual targets Achievements

72 training programmes in line with Work Place Skills Plan

Exceeded target by 45 training programmes

Two training programmes to international participants

Five training programmes to International participants

100% Protocol training 100% (64) Protocol training

Three publications reflecting institutional knowledge and experience

Five publications reflecting institutional knowledge and experience

20 Stakeholder engagements in support of foreign policy and four research papers

23 stakeholder engagements and four research papers on (Ukraine, Islamic States, Cyber Warfare & Price of Oil)

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Programme 2: International RelationsPerformance Achievement

29 out of the planned 34 structured mechanisms

During our bilateral engagements we focused on socio-economic development, market access & energy, agriculture, education, science and technology

Signed MoUs on Trade and Industrial Cooperation, Academic Cooperation, Health, Science & Technology,

Secured commitments on strengthening cooperation in fields of energy, defence, education, the blue economy, development assistance for rural development, skills development, mining, agriculture, science and technology

Financial assistance committed for Green Economy, HIV Prevention, Governance and Public Administration

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Programme 2: International RelationsPerformance Achievement

32 out of 65 planned High level visits

The underachievement was due mostly to the national elections The status of bilateral relations were reviewed and strengthened; continental and global development of mutual concern were also discussed

Tangible outcomes: signed MoUs in the fields of higher education & training, science & technology, health & a Five-to-Ten-year Programme of Cooperation

Promoted SA as an investment destination

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Programme 2: International RelationsAreas targeted Achievements

ECONOMIC DIPLOMACY

Trade and investment seminars;

Chambers of commerce;

Government ministries;

Potential investors; and

Tourism promotion events

Promoted exports in agro processing; renewable energy; various sectors such as banking; mining; automotive components; fruits; cosmetics; military equipment

Explored possible collaboration in food processing; aviation; transport and infrastructure, science and technology and education

Created awareness of SA products and promoted SA as a favourable investment destination

through 111 trade and investment seminars; 122 engagements with various chambers of commerce; 52 engagements with different government ministries; 96 meetings with potential investors and 96 tourism promotion events

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Programme 3: International CooperationFocus area of the Targets

Achievement

Promotion & protection of human rights

Negotiated and influenced the adoption of resolutions on:•the implementation of the International Decade on People on African Descent•Right of Palestinian people to self determination•Right to development

Disarmament, nuclear security and Non-proliferation

Continued the promotion of peaceful uses of nuclear energy and the safety and security of nuclear energy.

Post-2015 Development Agenda and Sustainable Development

Extensive work done on South Africa’s position on the Post 2015 Development Agenda and the Sustainable Development Goals, to ensure alignment with the NDP, Agenda 2063 and NEPAD

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Programme 3: International CooperationFocus area of Targets

Achievement

UNGA and its Committees

President’s participation to advance SA’s positions on:•SA’s policy position on the Palestinian question and Western Sahara•Reform of the UNSCNegotiated and influenced resolutions in the UNGA Main Committees including committees on Disarmament and International Security; Economic and Finance; Humanitarian and Cultural and Legal.

Climate Change

Extensive work done in preparation for COP21 where a new legal instrument under the UN Framework Convention on Climate Change will be negotiated

G20 President’s participation at G20 Summit resulting in the adoption of the Brisbane Action Plan

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Programme 3.2:Continental CooperationFocus areas of targets

Achievement

Peace and stability; socio-economic development; good governance and democracy

Advanced Africa Agenda through participation at AU structures, providing a national account on efforts to promote and protect human rights, adoption of 2014 as Year of Agriculture and Food Security and national consultations towards Agenda 2063

Utilised AUPSC membership to promote peace and security on the continent, including discussions on the modalities for effective operationalization of the ACIRC

Participated in seven election observer missions

Provided support to the President at NEPAD Summits and the updates given on progress on Presidential Infrastructure Championing Initiative

SADC Regional Integration

In capacity as Chair of the Organ convened various Summits to address peace and security challenges, particularly in Lesotho, DRC and Madagascar Contributed to the adoption of the Draft Declaration on SADC Infrastructure Development 14

Programme 3: South –South and North –South Cooperation

Focus areas of targets

Achievement

BRICS Sixth BRICS Summit that saw the signing of the first formal BRICS intergovernmental agreements, the Agreement on the New Development Bank with its regional centre in South Africa

IBSA Contributed to IBSA fund that allowed for the timeous response of projects on rebuilding Palestine as well as aid to Ebola affected countries

IORA South Africa assumed Vice-Chair of IORA, hosted first international workshop on the Blue Economy Contact Group

EU Concluded EPA negotiations and initialled the EU-SADC Economic Partnership Agreement

US-Africa Leaders’ Summit

Positioned South Africa as key trade and investment destination and renewal of AGOA

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Focus areas of targets Achievement

Media briefings, statements and opinion pieces

Utilized various platforms to articulate SA’s foreign policy positions on international affairs:•32 over the target of 24 media briefings;•229 out of 240 targeted media statements; •24 over the target of 11 opinion pieces

Publications 20 out of 19 targeted publications

Public Participation programmes

17 out of the 12 targeted Public Participation Programmes undertaken to create greater awareness of SA’s foreign policy priorities

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Programme 4Sub-programme 4.1: Public Diplomacy

Programme 4Sub-programme 4.2: State Protocol

Focus areas of targets Achievement

Provided Protocol services for state and ceremonial events, incoming and outgoing state visits

• Provided protocol services at four special events;

• Facilitated 28174 dignitaries through the State Protocol Lounges;

• 148 requests for ceremonial services;• 191 requests for incoming and outgoing

international visits

Provide immunities and privileges for the Diplomatic Corps

Provided diplomatic immunities and privileges in the following areas: •Issued 6015 diplomatic passports & visas; •Responded to 7887 requests for Diplomatic accreditation;•Responded to 2350 requests for Diplomatic privileges

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FINANCIAL POSITION AS AT 31 MARCH 2015

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APPROPRIATION STATEMENT

 

Adjusted Appropriation

Virement

Final Appropriation

2014/15 Actual

Variance Expenditure as %

2013/14 Actual

 

R'000 R'000 R'000 R'000 R'000 %

Administration1 419 569 (72 789) 1 346 780 1 247 943 98 837 92,7% 1 263 110

International Relations 3 047 451 75 473 3 122 924 3 119 882 3 042 99,9% 2 892 877

International Cooperation 504 400 (19 071) 485 329 485 154 175 100,0% 451 689

Public Diplomacy And State Protocol

309 297 (22 718) 286 579 275 861 10 718 96,3% 281 553

International Transfers 823 607 39 105 862 712 862 712 - 100,0% 977 981

Subtotal6 104 324

- 6 104 324 5 991 552 112 772 98,2% 5 867 210

2014/15 APPROPRIATION STATEMENT

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2014/15 Expenditure Outcome …continued

 

Adjusted Appropriation

Shifting of Funds

Virement Final Appropriation

2014/15 Actual

Variance Expenditure as %

2013/14 Actual

Compensation of employees 2 581 799 56 827 74 035 2 712 661 2 709 749 2 912 99,9% 2 433 733

Goods and services 2 414 835 (91 658) (111 746) 2 211 431 2 197 842 13 589 99,4% 2 208 968

Interest and rent on land - 46 598 - 46 598 46 590 8 100,0% 35 745

Transfers & subsidies 833 713 (469) 35 732 868 976 868 962 14 100,0% 984 330

Payment for capital assets 273 977 (11 298) 1 979 264 658 168 409 96 249 63,6% 203 980

Payment for financial assets - - - - - - - -

Total 6 104 324 - - 6 104 324 5 991 552 112 772 98,2% 5 991 552

2014/15 APPROPRIATION STATEMENT

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2014/15 Expenditure Analysis

Virements:

•Virement of funds amounting to R114, 6 million was shifted from

programmes 1, 3 and 4 to defrayment of over expenditure in

Programme 2 and Programme 5 due the depreciation of the Rand

against major foreign currencies, thus increasing operational costs

incurred in missions abroad as well as the assessed contribution within

Programme 5 as a result of foreign exchange fluctuation.

•The department could not request additional funding from National

Treasury as the depreciation of the Rand was after the adjustment

estimates were concluded

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2014/15 Expenditure Analysis

Programme 1: Administration

1.The expenditure for 2014/15 expenditure of R1.3 billion has increase as

compared to the 2013/14 of R1.2 billion . This is as a result of payment for

construction projects which were planned to paid in 2013/14 were only paid in

2014/15 due to unforeseeable delays with the capital projects.

Programme 2: International Relations

1. The expenditure for 2014/15 expenditure of R3,1 billion has increase as

compared to the 2013/14 of R2,9 billion. This is due to the depreciation of the

rand against other major currencies on expenditure to be incurred in foreign

currency in missions abroad.

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2014/15 Expenditure Analysis

Programme 3: International Cooperation

1. The expenditure for 2014/15 of R485 million has increase as compared to

the 2013/14 expenditure of R452 million. This is due to the depreciation of

the rand against other major currencies on expenditure to be incurred in

foreign currency in missions abroad.

Programme 4: Public Diplomacy and State Protocol

1. The expenditure for 2014/15 expenditure of R276 million has decrease as

compared to the 2013/14 of R281 million. This was due to a once off

expenditure in 2013/14 relating to the facilitation of the hosting of the 2014

Presidential Inauguration with regard to the protocol services provided to the

invited Heads of State and Government.

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2014/15 Expenditure Analysis

Programme 5: International Transfers

1. The expenditure for 2014/15 expenditure of R863 million has decrease as

compared to the 2013/14 of 978 million. This was due to the department

containing cost in relations to voluntary transfer payments, which would have

resulted in an unauthorised expenditure.

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ASSET MANAGEMENT

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PROCUREMENT MANAGEMENT

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EXPENDITURE MANAGEMENT

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REVENUE MANAGEMENT

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CONCLUSION1. The financial position of the department is healthy, however, the department

remained exposed to Rand fluctuations as a result of that the department

had to contain costs and defer some of the expenditure to avoid

unauthorised expenditure.

2. The department will continue to engage National Treasury for a permanent

or long term solution to assist the department to be able to perform as per

the plans.

3. The department will continue to put more effort in addressing all audit issues

– action plan has been developed and will be monitored by the office of the

Chief Operating Officer.

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AFRICAN RENAISSANCE AND

INTERNATIONAL CO-OPERATION FUND

ANNUAL REPORT

2014/15

Presentation to Select Committee

11 November 2015

Introduction • I am pleased with the steady progress we are making in utilizing the ARF to

meet policy and strategic objectives of our government.

• The ARF has made significant strides in moving away from transfer payments to recipient countries towards ensuring that goods and services are procured locally.

• This new approach has led to a significant decrease in disbursement due to strengthening of governance structures.

• The Lesotho humanitarian project provided assistance to Basotho people while ensuring that there was a significant contribution to South African farmers. All commodities were procured locally and 40% of grain for production on maize meal was procured from small holder farmers.

• South Africa continues to be at the forefront of promotion of democracy and good governance by participating in SADC Election observer missions. Observers were deployed for elections in Mozambique, Botswana, Namibia, Zambia and Mauritius.

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ARF Annual Performance report 2014/15

Performance indicators Target

 ACTUAL ACHIEVEMENT

AGAINST TARGET 

Percentage of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Board meetings

 100% of requests received responded to timeously as per objectives of the project plan. 

Twenty one (21) Project Proposals have been reviewed and submitted to committee meetings.

 Number of ARF structures and processes convened to identify and recommend projects in compliance with the ARF Act, 2000 and PFMA, 1999

Four Advisory Committee meeting to consider project proposals for recommendation

 Five meetings held to consider project proposals for recommendation.  

Democracy and good governance 

 100% of approved disbursement to support democracy and good governance processed timeously as per the objective of the project plan.

 Processed payments totalling R 3 440 949.52 with respect to South African deployment of election observer mission to Mozambique, Botswana, Namibia, Zambia and Mauritius.

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ARF Annual Performance report 2014/15

Performance indicators Annual Target

 ACTUAL PERFORMANCE AGAINST

TARGETS 

 Socio – economic development 

 100% of approved disbursement to support social – economic development processed timeously as per the objectives of the project

 Processed payment of R 5 369 000 for implementation of Cuban Medical Brigade Project in Sierra Leone.

Processed payment of R 4 251 709.71 for Rice and Vegetable Production Project in Guinea (Conakry). 

 Capacity-building

 100% of approved disbursement to support capacity-building processed timeously as per the objectives of the project

 Processed payment of R 7 100 000 for African Ombudsman Research Centre Project to the Public Protector

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ARF Annual Performance report 2014/15

Performance indicators Annual Target

 ACTUAL PERFORMANCE AGAINST

TARGETS 

 To provide humanitarian assistance and disaster relief

 100% of approved disbursement to humanitarian assistance processed timeously as per the objectives of the project

 Processed payment of R 141 000 as final payment for humanitarian assistance to Niger.

 To contribute to PCRD

 100% of approved disbursement to support PCRD processed timeously as per the objectives of the project

 Processed payment of R 18 230 000 as South Africa’s contribution to the SADC Secretariat for the Lesotho peace process.

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ARF Financial report 2014/15

R'000

Accumulated surplus as at 31 March 2014 1 470 662

Appropriated funds 277 560

Interest received 112 547

Approved Grants for 2014/15 (189 900)

Available funds as at 31 March 2015 1 670 869

ARF Financial report 2014/2015

2014/15 Approved projects:

(a) Humanitarian assistance to South Sudan R 15 000 000

(b) Drought relief in Namibia R 100 000 000

(c) Humanitarian assistance to Palestine R 11 200 000

(d) Emergency relief to Ebola disease R 32 500 000

(e) South Africa contribution to Lesotho peace

process R 20 000 000

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Governance structures Role Performance

Portfolio Committee Oversight on public entity

The chairperson of ARF briefed the committee three times in the financial year

Executive Authority Performance monitoring

The ARF submitted the Strategic Plan 2015 - 2017, APP2015/16, four quarterly reports , Annual report and Financial statements 2014/15

ARF Advisory committee Recommendation of projects to the Executive Authority

Held five meetings, processed 21 project proposals and recommended 10 project proposals.

Risk Committee Provides advice to Accounting Authority of effectiveness of enterprise wide risk management

Developed the risk management policy and strategy.

Audit Committee Review of financial and performance information

Held 6 meetings is during the financial year to review quarterly reports, financial statements and audit outcomes.

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Governance • The fund is managed through the control of the DG of DIRCO.

• The DG established a full time secretariat to monitor and evaluate projects, facilitate agreements and disbursements and provide secretarial services to Advisory Committee.

• The Advisory Committee, through the Secretariat, regularized the relationship between Fund and department by means of Operational Framework.

• The terms of reference for the Advisory committee and Secretariat were finalized and signed.

• The risk and audit committees were established during the financial year.

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Governance

• The irregular expenditure incurred in the financial year was condoned by the Accounting Authority. It relates to projects that are long running with contracts that were irregular from previous periods.

• We are addressing the challenge of procurement in remote areas where it is not possible to comply with SCM prescripts.

• Finalization of agreements with recipient countries is an on-going challenge which affects the disbursement of funds.

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SADPA/PFD bill

• The department is perusing efforts to review the legislative framework in order to consolidate international assistance provided by South African government.

• The draft Partnership for Development Fund is planned to the tabled before parliament in the 2016/2017 financial year.

• The objective of the bill is to support South Africa’s outgoing development cooperation policy by providing funding and technical support for development initiatives.

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THANK YOU