Nkandla - Correspondence from President of the Republic on investigation into allegations of improper or irregular conduct relating to security upgrades at Nkandla – reprimands to Ministers.Letters of Reprimand

Friday, 22 April 2016]
No 492016] THIRD SESSION, FIFTH PARLIAMENT
PARLIAMENT
OF THE
REPUBLIC OF SOUTH AFRICA
ANNOUNCEMENTS,
TABLINGS AND
COMMITTEE REPORTS
FRIDAY, 22 APRIL 2016
TABLE OF CONTENTS
ANNOUNCEMENTS
National Assembly
1.
Correspondence from President - reprimands to Ministers .................. 1
COMMITTEE REPORTS
National Assembly
1.
2.
3.
Tourism ................................................................................................. 6
Justice and Correctional Services ....................................................... 29
Public Enterprises ............................................................................... 47
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Correspondence from President - reprimands to Ministers

(1) Correspondence from President of the Republic on investigation
into allegations of improper or irregular conduct relating to
security upgrades at Nkandla reprimands to Ministers.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016
[Friday, 22 April 2016
COMMITTEE REPORTS
National Assembly
1.
Report of the Portfolio Committee on Tourism for

Budget Vote No. 33: Tourism, dated 21 April 2016
The Portfolio Committee on Tourism, having considered Budget Vote No.

33: Tourism, together with the Strategic Plans and Annual Performance Plans
of the National Department of Tourism (NDT) and the South African
Tourism (SAT), reports as follows:
1. Introduction
The Constitution of South Africa (Act No. 8 of 1996) recognises that
Parliament has a significant role to play in overseeing the performance of
government departments and public entities. In terms of section 10 (c) of the
Money Bills Amendment Procedure and Related Matters Act (Act No. 9 of
2009), strategic plans must be tabled in Parliament after the adoption of the
fiscal framework. This being the second year of the implementation of 2014 2019 Medium Term Strategic Framework (MTSF), the Department and South
African Tourism tabled their five-year strategic plans and annual performance
plans for 2016/17. The Department of Tourism therefore complied with the
provision of the Act as the strategic plan and annual performance plan were
tabled within the stipulated period. This is commended as it gave the
Committee ample time to go through a due process of considering these
documents.
It is imperative that the Strategic Plan and Annual Performance Plan of the
Department are to government priorities and policies. This is emphasised in
the Public Service Commission (PSC) report on evaluation of department
annual reports as an accountability mechanism. The PSC stipulates that the
emphasis on measurable objectives, which should be part of the strategic
plan, is to create a contract between Parliament and the relevant Minister
regarding specific deliverables for which the Minister can be held
accountable. The strategic objectives of the Department are therefore
important to ensure that the budget appropriated for tourism is utilised
effectively and efficiently. This accentuates the significance of the process of
considering the budget and strategic plan in the calendar of Parliament, and
the necessity for departments to table these instruments on time to ensure
Parliament is provided with information required for its oversight work.
In line with the oversight mandate of the Committee, this report provides the
scrutiny of the Strategic Plans; Annual Performance Plans; and budgets of
both the National Department of Tourism and South African Tourism with
regard to their alignment to government priorities and the National
Development Plan.
2. The Committee process

The purpose of Vote No. 33 - Tourism is to promote and support the growth
and development of an equitable, competitive and sustainable tourism sector,
and enhancing its contribution to national priorities.
The national budget with the Estimates of National Expenditure (ENE)
detailing the appropriated budget for Vote 33-Tourism was tabled in February
2016. This was followed by the Department and South African Tourism
tabling their Strategic Plans and Annual Performance Plans, which provides
specific deliverables and targets for 2016/17 on the 10th March 2016. These
oversight instruments were subsequently referred to the Committee for
consideration and report on 16 March 2016. The extended briefing sessions
were scheduled for the National Department of Tourism and the South
African Tourism to proffer to them an opportunity of presenting their
strategic plans, annual performance plans and budgets respectively.
Prior these engagements, as part of the review process, the Committee had an
opportunity to engage the Office of the Auditor-General (AGSA). This
meeting was aimed at providing the Committee with audit insights on the
interim review of the Departments draft annual performance (APP) in order
to add value and enhance the oversight work.
The Committee then extensively engaged the South African Tourism, later
referred to as SAT, on the 8th April 2016, and the National Department of
Tourism, later referred to as the Department, on the 14th April 2016, on their
strategic plans and annual performance plans. The Committee engagements
simultaneously reviewed the past performances and interrogated plans for
future implementation.
3. The National Department of Tourism
The Department aims to promote and support the growth and development of
an equitable, competitive, and sustainable tourism sector in order to enhance
the Departments contribution to national priorities.
3.1
The policy environment
In the State of the Nation Address (SoNA) 2016, a continued emphasis was
placed on active monitoring and accountability measures on infrastructural
projects and marketing of South Africa as a preferred destination. This is a
welcome development as the Department had also struggled in the past to
effectively monitor infrastructural projects implemented as part of the
Expanded Public Works Programme under the Social Responsibility
Implementation (SRI) Programme. More intense oversight on these projects
would greatly assist the Department in ensuring that projects are completed
within the given framework, and has the desired impact in terms of job
creation. Challenges in the past included amongst others: incomplete projects;
poor workmanship and poor project management which resulted in criminal
charges filed with the South African Police Service (SAPS). The
pronouncement on the importance of monitoring and accountability measures
on infrastructural projects will further insure that recommendations of
forensic reports are taken into consideration and fully implemented.
It is noteworthy that a portion of the seven billion earmarked for new port
facilities will also be highly beneficial to cruise tourism and has a potential to
increase tourism revenue generation. Oversight visits undertaken by the
Committee has consistently outlined the lack of infrastructure in some
provinces as the biggest hurdle towards ensuring that the countrys tourism
potential is realised.
The policy uncertainty with regard to immigration regulations has also
negatively affected the tourism sector. A progressive policy shift in this
regard is welcomed by the Committee whereby the Inter-ministerial
committee on Visa regulations has made notable concessions such as:
Capturing of biometrics at ports of entry, starting with a pilot at OR

Tambo, King Shaka and Cape Town airports;
Introduction of an Accredited Tourism Company Programme
(ATCP) for countries like China, India and Russia;
Consideration of a long-term Multiple Entry Visa for a period
exceeding three months, up to three years, for frequent travellers (for
business meetings), business people and academics;
Letters issued by principals confirming permission for children to
travel on school tours; and
Extension of the validity of the parental consent affidavits to six
months.
The Department has identified key priorities in line with the New Growth
Path (NGP), the current SoNA, and the National Development Plan (NDP).
Since tourism is one of the priority sectors in the NGP and the NDP, the
Department is implementing interventions that seek to ensure that their
activities are well aligned and lead to desired outcomes.
3.2
Strategic goals
The strategic goals over the medium term as identified by the Department are
as follows:
Ensure economic, efficient and effective use of departmental

resources.
Enhance understanding and awareness of the value of tourism and its
opportunities.
Create an enabling legislative and regulatory environment for
tourism development and growth.
Contribute to the economic transformation in South Africa
Accelerate the transformation of the tourism sector
Facilitate tourism capacity-building programmes.
Diversify and enhance the tourism offerings.
Provide knowledge services to inform policy, planning and decisionmaking.
Develop new source markets.
Enhance regional tourism integration.
Create employment opportunities by implementing tourism projects
targeted at the unemployed.
These key priorities of the Department are aligned with the key national
priorities which seeks to significantly reduce the unemployment rate,
especially among the young people in South Africa. Through its programmes,
the Department also seeks to tackle the triple challenge of poverty, inequality
and unemployment.
3.3
Spending focus during the Medium Term Expenditure Framework

(MTEF)
The Department carries out its mandate through four programmes, namely,
Programme 1: Administration; Programme 2: Policy and Knowledge
Services; Programme 3: International Relations; and Programme 4: Domestic
Tourism. During the Medium Term Expenditure Framework (MTEF), the
Departments focus will be on encouraging domestic tourism and stimulating
transformation. It will develop new tourist attractions, and support rural
enterprises to grow tourism. The budget is expected to grow at a moderate
rate over the MTEF period reaching R2.1 billion. SATs budget is also
expected to increase by an additional R105 million allocation for 2016/17 for
the improvement of domestic marketing programmes. The expected increase
in domestic trips is 359 thousand from 2.7 million in 2015/16 to 3.05 million
in 2016/17. This is a cause for concern as during the 2013/14 financial year
domestic tourism trips reached 3.1 million without the R105 million cash
injection. It is therefore expected that the Entity would perform better than
preceding years in domestic trips. International tourist arrivals will be
expected to increase from 8.9 million in 2015/16 to 9.05 million in 2016/17.
It is expected that the increase in tourist arrivals will positively contribute
towards the broader objective of growing the GDP and creating jobs.
The Tourism Incentive Programme (TIP) has been created as a subprogramme under the Policy and Knowledge Services, the Programme will
receive a budget allocation of R575.7 million over the MTEF, and this
allocation is earmarked for the facilitation of market access for local tour
operators and tourism businesses in recognised local and overseas
exhibitions. Some of the projects for the TIP will include assistance towards
the grading of tourism establishments and retrofitting renewable energy
initiatives for sustainable tourism. The SRI Programme is expected to support
the creation of 3 488 full time equivalent jobs in 2016/17, a mere 480 full
time equivalent jobs increase when compared to 2015/16. This, however, is
not adequate seeing that funding for this sub-programme has increased from
R253 million in 2015/16 to R386 million in 2016/17. Table 1 shows the
programme allocation for the Department of Tourisms budget.
10
Table 1: Programme allocation

Programme
Budget
R million
1 Administration
2015/16
233.7
Nominal
Increase /
Decrease in
2016/17 2016/17
237.5
3.8
Real
Increase /
Decrease
in 2016/17
Nominal
Percent
change in
2016/17
Real
Percent
change in
2016/17
-10.9
1 272.6
91.4
12.6
1.63 per
cent
7.74 per
cent
15.64 per
cent
44.85 per
cent
13.6 per
cent
-4.67 per
cent
1.07 per cent
2 Policy and
1 181.2
knowledge Services
3 International
47.3
Tourism
4 Domestic Tourism 307.0
54.7
7.4
4.0
444.7
137.7
110.2
TOTAL
2 009.5
240.3
115.9
1 769.2
8.48 per cent

35.89 per
cent
6.55 per cent
Source: National Treasury (2016) Vote 33 Tourism

4
Programme Analysis
The activities of the Department of Tourism are organised in the following

programmes:
4.1
Programme 1: Administration
The purpose of this programme is to provide strategic leadership, centralised

administration, executive support and corporate services. The budget
allocation to the Administration Programme is for strategic leadership
management and support services to the Department.
The total
Administration budget has increased from R233.7 million in 2015/16 to
R237.5 million in 2016 as indicated in Table 2. However this represents a
nominal increase of 1.6 per cent, a decrease of 4.67 per cent in real terms.
This Programme constitutes 11.82 per cent of the Departments total budget,
most of which will be spent through the Corporate Affairs sub-programme
which accounts for 65.9 per cent of the Administration programme, this subprogrammes role is to enhance management oversight to create an enabling
policy and legislative environment.
Table 2: Budget allocation for Programme 1

Programme
Budget
Real
Increase /
Decrease
in 2016/17
Nominal
Percent
change in
2016/17
Real Percent
change in
2016/17
2015/16
36.1
Nominal
Increase /
Decrease
2016/17 in 2016/17
32.4
-3.7
R million
Ministry
-5.7
18.9
150.2
28.5
19.3
156.5
29.3
0.4
6.3
0.8
-0.8
-3.4
-1.0
-10.25 per
cent
2.12 per cent
4.19 per cent
2.81 per cent
-15.81 per
cent
-4.21 per cent
-2.26 per cent
-3.56 per cent
Management
Corporate Affairs
Office
Accommodation
TOTAL
233.7
237.5
3.8
-10.9
1.6 per cent
-4.67 per cent
11
The growth in expenditure for the Administration programme is accounted

for in compensation of employees which accounts for 54.1 per cent of the
programmes budget. The Sub-programme Ministry has decreased from
R36.1 million in 2015/16 to 32.4 million in 2016/17, the decrease in
expenditure will be on goods and services specifically travel and subsistence
which has decreased from R27.1 million to R8 million.
4.2
Programme 2: Policy and Knowledge Services
The budget allocation for Programme 2 is illustrated in Table 3. The purpose

of this programme is to support sector policy development and evaluation,
research and knowledge management, promotion of transformation, and
responsible tourism.
Policy and
Knowledge
Services
R million
Policy and
Knowledge
Services
Management
Policy
Development
and Evaluation
Research and
Knowledge
Management
South African
Tourism
Tourism
Incentive
Programme
TOTAL
Nominal
Increase /
Decrease in
2015/16 2016/17 2016/17
6.8
4.7
-2.1
Real
Increase /
Decrease
in 2016/17
Nominal
Percent
change in
2016/17
Real
Percent
change in
2016/17
-2.4
-30.88 per
cent
-35.16 per
cent
21.3
27.7
6.4
4.7
30.05 per
cent
22.00 per
cent
29.9
26.4
-3.5
- 5.1
-11.71 per
cent
-17.17 per
cent
977.7
1 024.8
47.1
- 16.3
170.5
188.9
18.4
6.7
4.82 per cent -1.67 per

cent
10.79 per 3.93 per cent
cent
1 206.2
1 272.5
66.3
-12.5
Budget
5.5 per cent -1.04 per

cent

The budget allocation for the Policy and Knowledge Services Programme,
which has received the largest allocation in the budget representing 63.3 per
cent of the total Departmental budget decreased by 1.04 per cent in real terms
compared to the 2015/16 financial year. This Programme is entrusted with
ensuring strategic policy development, monitoring and evaluation, and
research and knowledge management services. The South African Tourism
(SAT) sub-programme, which is tasked with responsibility of stimulating
sustainable international and domestic demand for South African tourist
experiences, consumes 80.53 per cent of the Programmes budget. The South
African Tourism Budget will grow at an average growth rate of 5.2 per cent
over the MTEF.
Another noteworthy sub-programme growth is the Tourism Incentive
Programme (TIP), and this sub-programme has experienced an increase of
5.72 per cent in real terms. This programme experienced under expenditure
during the 2015/16 financial year of R10 million as a result of unspent funds
due to the delay experienced in the appointment of technical advisors for the
12
Robben Island renewable energy retrofitting project. It is not the first time
that the Department lost funds from TIP as during the 2014/15 financial year
the Department lost R78 million from the same programme, which was
redirected to Eskom. The Programme was introduced during 2014/15,
however, the programme did not deliver on the set mandate to help SMMEs
and established businesses to grow through improved market access. Towards
the end of 2014/15 financial year, TIP was moved to the Policy and
Knowledge services sub-programme and it became fully operational during
the 2015/16 financial year. This is worrisome as the purpose of this particular
programme is not in line with the TIP, it is however better placed within the
Domestic Tourism Programme. It is stated that the programme will support
tourism attractions to enhance destination competitiveness, however the
Estimates of National Expenditure (ENE) highlights that the Department will
develop new tourism attractions. Furthermore underutilised and unutilised
public recreational facilities and resorts will be redeveloped as tourists
attractions.
4.3
Programme 3: International Tourism
The budget allocation for Programme 3 is presented in Table 4. The purpose

of this programme is to provide strategic and policy direction for the
development of South Africas tourism potential throughout various regions
of the world.
Programme
R million
International
Tourism
management
Americas and
Western Europe
Africa and Middle
East
Asia, Australasia and
Eastern Europe
TOTAL
Nominal
Increase /
Decrease
2015/16 2016/17 in 2016/17
3.5
4.6
1.1
Real
Increase /
Decrease in
2016/17
Nominal
Percent
change in
2016/17
Real
Percent
change in
2016/17
0.8
31.43 per
cent
23.29 per
cent
17.3
20.0
2.7
1.5
14.4
16.3
1.9
0.9
12.1
13.8
1.7
0.8
47.3
54.7
7.4
4.0
15.61 per
cent
13.19 per
cent
14.05 per
cent
15.6 per
cent
8.45 per
cent
6.19 per
cent
6.99 per
cent
8.48 per
cent
Budget
National Treasury (2016) Vote 33 Tourism

The International Tourism Growth Programme is responsible for the
development and support of South Africas tourism potential throughout the
various regions of the world. This Programme increased by a noticeable
15.6 per cent in nominal terms from R47.3 million in 2015/16 to
R54.7 million in 2016/17. A significant amount of the International Tourism
budget will be focused on the Americas and Western Europe sub-programme,
as it will account for 36.6 percent of the total programme budget. The
majority of the Programmes budget will be allocated for compensation of
employees at 70.5 per cent as well as travel and subsistence at 9.3 per cent for
trips taken to analyse international tourism markets and attend multilateral
fora. The foreign governments and international organisations (which is the
Regional Tourism Organisation of Southern Africa and the United Nations
13
World Tourism Organisation) will account for 11.5 per cent of the
Programmes budget. This Programme will also focus its spending on training
South African missions abroad.
4.4
Programme 4: Domestic Tourism
The purpose of the Domestic Tourism Programme is to provide policy and

strategic direction for the development and growth of sustainable domestic
tourism throughout the South Africa.
Nominal Real
Percent
Percent
change in change
in
2016/17
2016/17
31.43 per 23.29 per
cent
cent
15.70 per 8.54 per
cent
cent
2016/17
Nominal
Increase /
Decrease
in 2016/17
Real
Increase /
Decrease in
2016/17
10.5
13.8
3.3
2.4
12.1
14.0
1.9
1.0
17.3
15.3
-2.0
-2.9
-11.56 per -17.04

cent
per cent
253.6
386.1
132.5
108.6
307.0
444.7
137.7
110.2
52.25 per
cent
44.9 per
cent
Programme
Budget
R million
2015/16
Domestic Tourism
management
Domestic Tourism
management Southern
Region
Domestic Tourism
management Northern
Region
Social Responsibility
implementation
TOTAL
42.82 per
cent
35.89 per
cent

The Departments budget allocation for the Domestic Tourism Programme
has increased by 35.89 per cent in real terms from R307.0 million in 2015/16
to R444.7 million in 2016/17 as indicated in Table 5. This programme is
responsible for the promotion, development, and growth of sustainable
domestic tourism throughout South Africa. The spending focus will mostly be
on the Social Responsibility Implementation (SRI) sub-programme, which
focuses on infrastructure projects under the EPWP programme targeting the
youth, disabled, women, and SMMEs. This sub-programme accounts for
82.6 per cent of the Programme. The expected increase to this Programme
will be highly influenced by the increase in the allocation for the SRI subprogramme, an increase in the transfers to the Strategic Partners in Tourism
and training and development. The expected jobs to be created through the
SRI programme will be 3448 for the 2016/17 financial year.
5
South African Tourism
In terms of the Tourism Act (Act No. 3 of 2014), South African Tourism is
mandated to market South Africa internationally and domestically as
preferred tourism destination and to ensure that tourist facilities and services
are of the highest standard. The organisation is also required to monitor and
evaluate the performance of the tourism sector.
14
5.1

Strategic Objectives
The strategic objectives for 2016 2021 were summarised as follows:

5.1.1 Contribute to the South African economy by increasing the
number of travellers to and within South Africa.
5.1.2 Build positive awareness of the South African experience.
5.1.3 Reposition SA Tourism to be recognised as a tourism and
business events industry leader in market intelligence,
insights and analytics.
5.1.4 Collaborate with stakeholders and partners to deliver on SA
Tourisms mandate.
5.1.5 Improve visitor experience in line with the brand promise;
and
5.1.6 Create an organisational culture of work satisfaction,
excellence and innovation to improve effectiveness and
operational efficiency.
5.2
Strategies to achieve strategic objectives
South African Tourism has developed seven new strategies aimed at

achieving the set strategic objectives. The seven strategies and measures are
as follows:
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
5.3
Invest in selected markets for leisure tourism to deliver

volume (travellers) and value (tourism revenue).
Position South Africa among the top 10 long-haul business
events destinations by 2025 while collaborating to convert
business travellers into leisure tourists.
Revamp the value proposition of tourism grading to inspire
partners and stakeholders to deliver on the brand promise and
quality visitor experience.
Work with trade partners to leverage resources to deliver
travellers to and within South Africa.
Position SA Tourism as the foremost authority in tourism and
business events, underpinned by quality assurance.
Collaborate with partners and stakeholders for tourism
growth.
Create a culture of excellence and innovation to improve
effectiveness and operational efficiency.
International Tourism Marketing
The world has changed considerably since SA Tourism completed the fifth
portfolio review in 2013. SATs fifth leisure tourism market portfolio will be
revised in 2016/17 in line with the current market insights. In order to
effectively and efficiently deliver on its mandate, SATs operating model will
be as follows:
5.4
15
Adoption of a hub approach this approach involves clustering

markets into regional hubs for ease of marketing operations and
international trade relations.
Shift from bricks to mortar to virtual offices this involves
appointing trade relations managers to service thin markets so as
to exploit the gains arising from such markets; and
General Marketing Agency this approach focuses on appointing a
marketing agency representative to service markets with high set up
costs and lengthy registration processes.
Regional Africa Marketing
The National Tourism Sector Strategy identifies the rest of Africa as the main
source of foreign arrivals for South Africa and outlines the tourism goals for
continent, and SAT will pursue the following to unlock the regional markets:
Increasing regional awareness of South Africa as a tourism and
leisure destination.
Improving market presence in key African markets; and
Implementing regional tourism programmes.
5.5
Domestic insights study
SA Tourism commissioned the study on domestic insights to revise the

approach to effectively target the domestic market, thereby growing domestic
tourism and building a culture of travel within South Africa. In order to grow
domestic holiday trips and total domestic direct spend, SAT will:
5.6
Create awareness and travel culture amongst South Africans.

Motivate the market segments to take more holiday trips by
showcasing a variety of desirable experiences through engaging rich
informative content.
Partner with and educate the channel to promote relevant VFM deals
with supporting content on activities so that prioritised segments are
motivated to book.
Promote suitable deals and travel packages to improve affordability
and seasonality; and
Maximise use of and leverage on provincial signature events through
activations and media engagements.
Working with Trade
SAT will pursue the establishment of a healthy working relationship and

collaboration with the trade through working with trade partners to leverage
resources that will deliver travellers to and within South Africa. Through
partnerships, the South African brand will be built and trade partners will be
empowered and enabled to sell South Africa in the following manner:
16
5.7
Creating awareness and positivity for South Africa as a tourism

destination.
Initiating an integrated approach between SAT and trade.
Conducting trade mapping in each market.
Educating the trade to sell South Africa better; and
Using cooperative agreements.
Business tourism
South African Tourism, through the South African National Convention

Bureau (SANCB) will position South Africa in the top ten long-haul business
events destinations according to ICCA and Union of International
Associations (UIA) ranking. SAT will also collaboratively convince key
decision-makers that South Africa can be trusted to deliver memorable
experiences and successful business events. This will require:
5.8
Reconfiguring of the SANCB to generate more quality association

leads that convert into bids, while focusing on African opportunities.
Empowering SAT offices abroad to generate leads, offer support and
facilitate incentive-driven business leads to achieve a more
integrated organisation and optimal return on investment.
Enhancing delegate-boosting platforms to leverage SA Tourisms
marketing campaigns and expertise, in order to convert the business
events delegates into leisure tourists.
Repositioning the brand to drive awareness, positivity and
consideration of South Africa as the leading meetings destination in
Africa and an appealing destination for delegates.
Continuing to explore alternative bid support strategies.
Generating sales using a sales representation model in some markets
and, in others, direct sales using in-house sales teams; and
Negotiating with and managing the strategic partner for better
positioning of the Indaba and Meetings Africa events.
Quality Assurance
The Tourism Grading Council South Africas pursuit of enhancing visitor

experience and consumer confidence in the tourism products of South Africa
will be achieved by implementing the following:
Review of policies related to grading. A committee has already been

established to undertake the process.
Drive positive perceptions and the appeal of grading in the industry
by refining the grading value proposition in line with the consumer
insights and associated communication plans per client category,
launching in April 2016.
Grow the customer base through a targeted sales strategy that
emphasises the grading value proposition in consultation with
industry associations using grading support funding; and
Retain the customer base by delivering the grading value
proposition through a Customer Relationship Framework.
5.9
17
Enhance and improve the integrity of the grading criteria and

process. A review of the grading criteria was conducted in 2015/16
to be applicable for further three years.
Implement globally benchmarked capacity-building and knowledgetransfer programmes to improve the integrity of the grading
assessors, as well as to ensure optimal transitioning from an
outsourced to an in-house assessor model; and
Partner with tourism quality assurance bodies, universities, the
tourism industry and the Culture, Art, Tourism, Hospitality and
Sports Sector Education and Training Authority (CATHSSETA) to
professionalise tourism quality assurance.
Stakeholder Engagement
Stakeholder engagement is one of the weaknesses revealed by the SAT

Review Report commissioned by the Minister of Tourism in 2015/16. SAT
will strive to strengthen its stakeholder engagement and innovatively align
strategies for tourism growth through:
5.10
The organisation implementing the organisational Stakeholder

Management Plan that will have defined and measurable outcomes.
SAT together with NDT collaborating with trade on key projects
focused on branding (PR and messaging), marketing, market access,
business tourism and transformation.
Building a case for tourism as a key pillar for accelerated economic
growth and job creation, both in the short-term and in the long-term.
SA Tourism continuing to collaborate with provincial and city
tourism agencies on initiatives to improve the seasonality and
geographic spread of travel, drive domestic tourism.
SA Tourism and the provinces continuing to leverage on Joint
Marketing Agreements (JMAs) and market access platforms both
locally and international markets to find synergies, eliminating
duplications and creating efficiencies in how government funding is
spent.
Energising and empowering people to innovate for excellence
Tourism is an ever changing sector that requires SAT to be a highly

innovative organisation with motivated staff that keep up with international
trends. To achieve innovation:
The organisations staff complement will remain the cornerstone of

its success. The management and the Board will continue to create
an environment conducive to high performance and excellence.
SA Tourism will implement a human resources strategy that is
aligned to its overall business strategy.
As part of building an inspiring and energised organisation, SAT
will implement the Leadership Development Programme
underpinned by an executive mentoring and coaching programme.
18
5.11
Culture Alignment Programmes will form part of the full Brand

Ambassador Programme, including training, orientation and reorientation as well as new-leader on boarding.
The implementation of the Brand Ambassador will create a
commonly shared organisation DNA / culture for the effective
delivery of strategies.
SA Tourism will reconfigure itself to deliver on strategy by
conducting capacity assessment, organisational development and
resource placement.
Implementing an Integrated Talent Management Plan and a
Succession Planning Programme, including a revision of the
organisations remuneration philosophy. This will be underpinned
by workforce planning, staff retention and work skills planning; and
The focus of all the programmes will be based on the strategic thrust
of re-establishing the organisation as a high performance and
innovative environment and defending SAT as a research-led
destination marketing organisation, while energising and
empowering its people and partners to innovate for excellence and
tourism growth.
Positioning SAT as the foremost authority in tourism and business
events
To deliver the strategy that positions South Africa as a preferred destination

for leisure and business events, SAT will perform the following activities:
5.12
Rebrand, expand and resource its strategic research function to

market intelligence, insights and analytics. Market intelligence and
insights will be taken into account in strategic planning and
decision-making.
Partnerships with tourism-related and other industries, such as
airlines and airports, will also be forged to ensure that new data
feeds are utilised.
Expand the partnership with Statistics South Africa to include
domestic surveys; and
Invest in online and offline platforms for the packaging and sharing
of integrated market intelligence, insights, data reports and analytics
for leisure, business and events and grading.
Organisational Risk Management
At the time of finalising the Strategic Plan, SA Tourism was embarking on a

risk assessment to identify risks that might have a negative impact on the
achievement of its strategic objectives. This process was concluded by the
end of March 2016. The top three risks identified are as follows:
Currency loss and increased costs of doing business abroad;
Possible decline in tourism industry performance; and
Lack of assurance over tourism statistical data.

5.13
19
Sources of revenue for South African Tourism
The total budget for SAT in the 2016/17 financial year is R1 221 835 billion.
The budget is drawn from the following sources:
Government Grant is R1 024 847 billion

TOMSA Levy is R99 450 million.
Indaba and Meetings Africa R54 506 million.
Grading Fees is R20 098 million.
Sundry revenue is R 22 934 million
Committee observations
The Committee synthesised all the presentations received from the AuditorGeneral, National department of Tourism into observations that will form the
basis of its oversight programme in the 2016/17 financial year. The
observations outlined below are categorised into service delivery and budget
related matters. Observations are also categorised according to the work of
the Department and activities of South African Tourism.
6.1
Observations on the National Department of Tourism
The observations made in relation to the Department are as follows:

6.1.1
Service delivery related observations
The service delivery observations are based on the non-financial

factors that contribute to the poor performance of the sector. These
include internal factors under the purview of the Department and
external factors beyond its control that should however be coordinated
by the Department.
6.1.1.1 Cooperative governance
The Committee observed that despite good programmes presented to
the Committee from time to time, there were still challenges with
regard to cooperative governance and implementation of programmes
at a local constituency level. These pertain to programmes that should
have been implemented, but there was no progress due to lack of
cooperative governance amongst stakeholders. This mostly affects
attractions such as the Mandela Capture Site in KwaZulu-Natal where
a project was implemented by the Department of Cooperative
Governance and Traditional Affairs in KZN but there is no signage
from the N3 to the site. This was a matter also identified by the
Committee when undertaking an oversight visit to KwaZulu-Natal in
the 2015/16 financial year. The Committee acknowledges that there is
an interdepartmental committee that addresses these issues, but the
concern is that there are no tangible outcomes on the ground. A call
was made to the departmental to address this challenge through the
coordination of activities at a professional level through recognised
structures such as the Forum of South African Director-Generals
(FOSAD).
20

6.1.1.2 Handling of tourism complaints
The Committee observed that in the past financial year the
Department received thirty four complaints and that a bulk of these
were related to issues of refund between the service providers and the
complainants. Some complaints related to consumer dissatisfaction
with the experience related to breach of product promise when the
experience was purchased. The Committee sees this as a far reaching
matter in terms of the mandate and services provided by the Tourism
Grading Council with regard to establishments complying with
offering standards at an appropriate grading status. The Committee
therefore urges the Department and the Tourism Grading Council to
work closely with the trade associations to ensure that their members
ethically deliver on the brand and product promise to meet consumer
expectations.
6.1.1.3 Capacity building in rural communities
The Committee observed that some rural areas have a potential for
tourism development, particularly those adjacent to busy tourism
attractions. However, communities in these areas are observers and
not participants in the local tourism economy as if they are off the
beaten track to tourists. The Department is urged to look into
possibilities of introducing capacity building programmes to involve
local communities, including converting their homesteads to
homestays. It is acknowledged that the Department has undertaken a
benchmarking study tour to Malaysia in this regard and some
communities, such as the Moruleng in Pilanesberg, have started
reaping the benefits. However, the Department is encouraged to roll
out a nationwide programme to reach as many communities as
possible.
6.1.1.4 Planning for projects
The Committee observed that the Department operates in a fluid
multidisciplinary environment and always plans its projects in
partnership with other partners to maximise impact and stretch its
budget. Infrastructure related projects go through a 14 days cycle
which delays inception and commencement of projects. In other
instances, such as implementation of signage in World Heritage Sites,
the Department had to go through a lengthy process of signing
Memoranda of Agreement that detail responsibilities for various
organisations. The challenge always arises when procurement has to
be done by partner organisations whereby delays are experienced,
thus affecting the implementation and achieving targets set in the
Annual Performance Plan. The Committee is concerned that
continued failure to meet time frames in the Memoranda of
Agreement would result in failure to meet targets in the Annual
Performance Plan thus leading to poor service delivery. The
Department is urged to develop checks and balances to ensure proper
planning and implementation of projects.
21
6.1.1.5 Marine and Coastal Tourism

The Committee noted that the Department has introduced the Blue
Flag Beaches programme aimed at facilitating the implementation of
Blue Flag Beaches across the coastal cities and towns in the country.
This Committee further noted that this is in line with the
recommendations made by the Committee when the Department
tabled the 2015/16 Annual Performance Plan. The Committee had
identified that the Department was missing an opportunity in
leveraging on Operation Phakisa as there was nothing on marine
tourism. The Committee commends the Department for implementing
its recommendations to develop a programme that links to Operation
Phakisa by introducing the Blue Flag Programme. However, the
Department is urged to develop a comprehensive strategy that will tap
into wider marine tourism development opportunities presented by the
almost 3000 km coastline of South Africa. The Committee
acknowledges that the Department will be embarking on a marine
tourism consultation process with a number of stakeholders and urges
the Department to facilitate an outcome of a comprehensive and
inclusive Marine Tourism Strategy.
The Committee also acknowledges that the global cruise tourism
industry has increased and cities such as Durban, Port Elizabeth and
Cape Town were planning to increase their participation in the sector
through having dedicated cruise terminals. The type of development
in cruise terminals such as that in the Cape Town Waterfront was
using a mixed model that caters for seasonality as well. It was noted
that the Minister admitted that the Department traditionally did not
consider cruise tourism a priority, and was aware that cruise tourism
was a growing industry. The Committee notes that the Department
acknowledges that this is a short term thinking and cruise tourism
would be investigated, and if found viable, will be one of the priorities
of the departmental strategies.
6.1.2
Budget related observations
The Committee made the following budget related observations with

regard to the Department:
6.1.2.1 Controls on the budget transferred to South African
Tourism
The Committee noted that 83.3 percent of the budget appropriated to
Programme 2 is transferred to South African Tourism. A significant
transfer of more than 50 percent of the SAT budget allocation is
transferred upfront to deal with issues of currency exposure, which
has been a challenge for SAT for a number of years. The Committee
commends the Department and SAT for addressing this issue which
has caused SAT to lose more than R350 million of its marketing
budget in the past five years.
22

The Committee recognises that South African Tourism has a new
Board that looks poised to delivering on their mandate in terms of
both strategy and financial management. However, the Department
should have proper controls in place to ensure that the budget
allocated to SAT is used appropriately as it takes a large portion of
funds appropriated to Vote 33: Tourism. The Department should also
ensure that South African Tourism produces and delivers on
marketing strategy that will maximise return on investment from the
appropriated budget.
6.1.2.2 Compensation of employees
The Committee observed that as part of cost cutting measures, the
Cabinet has approved reductions of R17.5 million in 2017/18 and
R26.6 million in 2018/19 to the departments compensation of
employees budget as part of its decision to lower the national
aggregate expenditure ceiling. The Department has also been directed
to not exceed 530 employees in its establishment. The Committee
notes that currently the staff establishment is 550 and the Department
has to decide, if posts become vacant, whether to fill or remove them
from the establishment. The Committee is concerned that this might
lead to the Department failing to fulfil its mandate in future if staffing
matters are not handled with care. The Department is therefore urged
to ensure that the critical posts are always filled to effectively and
efficiently deliver on its mandate. The target of maintaining the
8 percent vacancy rate is also highly commended given the high
unemployment rate in the country.
6.1.2.3 Capital assets
It was observed that there was a steep increase in the capital assets of
the Department from R6.0 million, which accounted for 0.3 percent of
the budget of the Department in 2015/16, to R112.3 million in
2016/17 which accounts for 5.6 percent of the budget. This emanated
from the reclassification of the Expanded Public Work Programme
under Programme 4: Domestic Tourism as capital assets. The
Committee notes that this has settled the matter that has been a
concern for the Committee in the past financial years and which led to
the Auditor-General giving an ultimatum for compliance by the
Department in the 2015/16 or else risk getting a qualified audit.
6.2
Observations for South African Tourism
The Committee observations with regard to South African Tourism include

both the budget considerations and the service delivery environment. The
observations are as follows:
6.2.1
SAT country offices
The Committee observed that the model of operating country offices

has been proven to be expensive and not cost-effective. South African
Tourism is commended for initiating a process of implementing a hub
strategy which will use virtual offices and ensure that one office in the
23
region services a number of markets/ countries. The Committee noted

that in the past, country offices have resulted in overhead costs that
tended to gradually increase due to currency exposure. The Hub
Strategy will lead to closure of some country offices and release the
money for the marketing mandate. The Committee urges South
African Tourism to implement the hub strategy to cover as many
markets as possible to ensure the presence of South Africa globally
and address issues in emerging markets, including watch-list markets.
6.2.2 Relationship of SAT with foreign missions
South African Tourism is commended for training the Department of
International Relations and Cooperation (DIRCO) staff that is sent to
the missions abroad. The Committee noted that the DIRCO staff is
trained on a similar course that is provided to tour operators, which
capacitates them to be tourism ambassadors in their respective
embassies. It was noted that the DIRCO staff is also hosted every
year at Indaba and they are trained on how to identify tour operators
they can work with, and programmes they can implement with the
media. Secondly, the staff is introduced to local products at Indaba so
that they can get information that could be used when interacting with
tour operators in their own countries.
The SAT had previously briefed the Committee that it was impossible
to use tourism attachs in missions abroad. However, the Committee
noted that some countries in SADC, such as Mozambique, had
tourism attachs stationed at their embassies. The Committee urges
South African Tourism to explore the possibility of using tourism
attachs to maximise on a partnership already established with
DIRCO.
6.2.3
Maximising interventions of the South African National

Conventions Bureau
South Africa is ranked number one in the African continent with

regard to business tourism. The Committee observed that the rating of
the South African National Conventions Bureau (SANCB) was linked
to the International Congress and Convention Association (ICCA) and
that South Africa hosted an average of 120 business events per
annum.
The Committee is however concerned that the SANCB activities are
mostly concentrated around the three major cities, namely,
Johannesburg, Durban and Cape Town. The Committee notes that the
average size of business events in South Africa was 700 to
800 delegates and that not all cities in the country have the capacity to
host such huge events. The Committee will be conducting close
oversight on the NCB to monitor whether smaller meetings are hosted
in smaller towns or big cities. This will be done to track the
implementation of the commitment made by the NCB that some
events in 2016 will be hosted in Mpumalanga and Grahamstown to
address geographical spread and seasonality.
24

6.2.4
Improving airlift
The Committee noted that the Western Cape Province had finalised
their Airlift Strategy and KwaZulu-Natal was also working on theirs.
It is commended that SAT had advised the two provinces on the four
core markets being pursued in the marketing strategy, in assisting
them to align their airlift strategies with activations in these markets.
The Committee also recognises that direct routes to the destination are
important and resuscitating direct flights such as the one that used to
exist between Johannesburg and Mumbai would be important for
increasing arrivals from India. The SAT and the Department are urged
to continuously engage the Department of Transport on the prospects
of developing a national airlift strategy that will assist other provinces
and towns in improving international and domestic tourist arrivals.
South African Tourism is also encouraged to engage airlines to open
more direct routes to South Africa.
6.2.5
Addressing challenges in the grading scheme
The Tourism Act (Act No. 3 of 2014) outlines grading as a voluntary

scheme. The Committee has observed that there are numerous
challenges plaguing the grading scheme and there is a need for a
policy review to investigate amongst other things, a possibility of a
free but compulsory system. The Committee notes that the Tourism
Grading Council of South Africa is currently not fully implementing
grading as outlined in the Act as not all tourism services, facilities and
products are being graded. Grading is only limited to the
accommodation sector and has not been extended to other tourism
touch points such as attractions and transportation. The Committee is
concerned that the Tourism Grading Council of South Africa
(TGCSA) considers the extended mandate of the Tourism Grading
Council in Act as unfunded and therefore comprising quality
assurance for destination South Africa. The TGCSA is urged to
engage the Department on funding constraints with regard to the
extended mandate as prescribed in the Act to include all facilities in
the tourism value chain in the grading scheme.
6.2.6
Improving Indaba as Africa prime tourism show
The Committee has over the years raised concerns about the waning
impact of Indaba as South Africas number one tourism show. This
was based, among other things, on the format of the show, quality of
buyers, value-for-money for participants and lack of tourism research
aspect/ seminars in the show. The Committee is pleased to note that
the decision to have a partner that will plan and coordinate Indaba on
behalf of South African Tourism has not changed. The SAT is
commended for having started with the tender process which is at
advanced state and that the announcement on the successful bidder to
plan and coordinate Indaba would be made soon.

6.2.7
25
Prospects for tourism growth in 2016
The tourism industry has been distressed in South Africa due to a

number of factors, including the visa regime and Ebola epidemic in
West Africa. However, the Committee has observed that the industry
has seen an encouraging recovery as tourist arrivals in January 2016
started to increase. The recent statistics released by Stats SA indicate
that there were 1 012 641 tourist arrivals which amounts to 15 percent
growth compared to January 2015. The growth was observed in all
major markets with China growing at 93 percent, Germany improving
by 22 percent, United Kingdom growing at 16 percent and America
by 11 percent. This was a positive start and the indicators were
considered positive for a continued growth in 2016. The Committee
notes that the SAT has a forecast of 2 percent growth in the Annual
Performance Plan for 2016/17 but the growth is optimistically going
to be above 2 percent based on the favourable exchange rate which
positions South Africa as an affordable and value-for-money
destination for foreign markets. The Committee is confident that the
speedy amendment of the unabridged birth certificates requirement in
the immigration regulations as recommended by the Inter-Ministerial
Committee will also have a huge positive impact to the increase in
tourist arrivals.
6.2.8
The role of private sector in marketing South Africa
The Committee noted that South African Tourism has recently signed
a three-year Memorandum of Understanding with TOMSA Levy
which details how the funds will be utilised. It is noted a 15 percent
collaborative fund has been set aside to be implemented by TOMSA
Levy. However, all the initiatives implemented using TOMSA Levy
are done collaboratively with the Tourism Business Council of South
Africa. The levy is used for two key projects. Firstly, there is a short
term project which deals with marketing and promotion in four major
markets, namely Germany, UK, US, and China. The 15 percent
collaborative fund will also be used for PR and branding. It is also
noted that a global campaign is on the cards for a reputational
campaign. Secondly, a domestic campaign called The Finders
Keepers has been implemented in partnership with the Sunday
Times. The project highlights the nine provinces and their Hidden
Gems. The Committee is however concerned that the TOMSA Levy
collectors are declining and that many establishments are not
contributing to the levy. This might necessitate a policy review with
regard to the contributions made by the private sector to the marketing
initiatives. The Committee would therefore be commissioning an
internal benchmarking research to gain insights on how other
countries are dealing with this matter, including possibilities of policy
and legislative review proposals for a compulsory tourism tax.
26

6.2.9
Unleashing domestic tourism potential
The Committee welcomes the recommendations of panel review

report of South African Tourism commissioned by the Minister. The
panel identified a gap in the relationship between the nature-based
tourism, SanParks and other provincial agencies in terms of
affordability and accessibility of these attractions to the citizens. The
Committee notes that the SAT has had discussions with SanParks on
domestic tourism discounts, such as using the wild card. This will
make nature-based tourism, including game reserves, nature reserves,
and botanical gardens affordable to citizens. Another area that has
been neglected is arts and culture and it is noted that the SAT has had
discussion with relevant agencies to map out the cultural, arts and
heritage strategy to leverage on these aspects of domestic tourism.
The Committee had also identified this missed opportunity and hence
initiated and undertook a joint oversight visit with the Portfolio
Committees on Arts and Culture and Environment. This was based on
the fact that arts and culture is very important for domestic tourism,
but is not well developed and marketed.
In the insights provided by the Minister of Tourism, improvement of
cultural tourism is based partly on marketing and partly experience,
and the combination of both makes cultural tourism attractions. The
cultural villages, for example, need attention to provide a memorable
experience. The SAT is currently in the process of finalising domestic
consumer insights. The research has come up with findings that the
inspirational campaign My First Time Campaign aimed at
encouraging South Africans to travel was successful. Furthermore,
SAT has partnered with organisers of domestic events such as the
biking event that takes place in Limpopo to increase domestic
tourism. The Minister alluded that they are working with the industry
to ensure that domestic tourism is affordable to South Africans. The
private sector should come to the table to make domestic tourism
accessible and affordable.
The Committee also observed that there are municipal resorts that are
dilapidated and not functioning optimally, and that if these resorts are
renovated they could make domestic tourism affordable. However,
there is not enough budget to make significant contribution to
upgrading municipal resorts. The Committee noted that the Minister
also agreed that municipal resorts could be the solution to addressing
the affordability of accommodation, and that there needed to be a
collaboration with the provinces to address this matter.
6.2.10
Improving implementation of
Implementation (SRI) projects
Social
Responsibility
The Committee has observed over the years that there was a challenge
in implementing the Expanded Public Works Programme or Social
Responsibility Projects (SRI) projects as part of the programmes
undertaken by the Department. It was noted that the Minister also
alluded that implementing community projects in rural areas was
27
sometimes difficult and the failure rate was high. The Department had
commissioned forensic audits and some cases were served before the
courts. The Committee commends the interventions of the Department
whereby efforts were being shifted from developing ad hoc
community projects towards destination enhancement, which will
improve tourist experiences in destination South Africa. The
Committee notes that community projects in the future will be
carefully selected to enhance product mix, and that products such as
cultural villages could also be an option as cultural diversity is part of
South Africas uniqueness.
6.2.11
Ease of travel and accreditation of tour operators abroad
In the update provided by the Minister, the Committee noted that

Brazil does not need visas and the Minister of Home Affairs recently
announced that Russian citizens who want to travel to South Africa
for leisure reasons would be exempted from Visa requirements. This
is a new dispensation and will address the difficulty of travelling from
Russia, which has been a large visa requiring geographical area.
Furthermore, the accreditation of tour operators is no longer a
requirement from visa exempt countries for leisure tourists. In China,
the need for in-person application is no longer a challenge as all tour
operators are accredited. People wanting to travel to South Africa as
leisure tourists can now apply for their Visa through the accredited
tour operators. It is noted that the same applies in India, but the
outstanding issue in India is the capacity of Home Affairs to process
Visa applications. The Committee welcomes the Cabinet
announcement that Home Affairs will be exempting travellers from
the BRICS countries who hold Visas from countries such as US, UK,
Schengen and all other countries who apply stringent visa application
processes. These tourists will be issued a Visa on arrival. The
Committee, however, notes that this was only a policy statement at a
time and not a decision yet, but it is a matter that will be given serious
attention by Cabinet. The one outstanding matter from the IMC
recommendations is the amendment to the Immigration Regulations
that deals with the requirement of the unabridged birth certificates,
especially from visa exempt countries.
7
Conclusion
The Committee recognises that the tourism industry is impacted by a
number of internal and external factors. Most of the external factors are
fluid and the government has no control over them nor do they fall within
the purview of the private sector. The fluidity of the international tourism
trends in the sector compel well-coordinated efforts between the state and
the private sector. The Department of Tourism and South African
Tourism are therefore charged with a demanding task of ensuring that
they develop strategies that leverage on favourable factors and mitigate
the negative effects to destination South Africa. Some of the favourable
factors are exchange controls that have nonetheless not been harnessed to
give mileage to the country as a preferred and value-for-money
destination.
28

The Committee commends the Department and South African Tourism
for stretching the appropriated budget for tourism through a number of
partnerships they have forged with both the public and private sector
partners. Tourism thrives in partnerships and the number of partnerships
realised in the current financial year epitomises the kind of collaboration
that is desirable to grow the sector. The proposed partnerships with regard
to heritage, arts and culture organisations in particular, will be tracked by
the Committee with keen interest to monitor how the Department unlocks
domestic tourism to address affordability and accessibility by the citizens.
The Committee is satisfied with how the Department and South African
Tourism will be spending the appropriated budget as outlined in the
Annual Performance Plans for the 2016/17 financial year. The Strategic
Plan and Annual Performance Plan tabled by South African Tourism has
introduced numerous improvements on how the Entity will be conducting
its business in the future. This is a welcome improvement as it gives
effect to the mandate of South African Tourism to market the country
domestically and internationally. The quarterly reports will afford the
Committee an opportunity to conduct oversight on regular basis to track
expenditure patterns and see if the new plans take the sector to a growing
trajectory.
8.
Recommendations
The Committee observations led to a number of recommendations that
are consolidated in line with the Committee Strategic Plan and Annual
Performance Plan for the 2016/17 financial year. These
recommendations have both short-term and long-term ramifications.
The Committee recommends that:
8.1
The Minister ensures that the Department devises innovative ways to

ensure the implementation of their Human Resources Strategy
within the confines of the compensation of employees budget
approved by the National Treasury, without compromising service
delivery and mandate of the Department.
8.2
The Minister ensures that the Department properly plans for

projects, and that partner organizations implementing projects on
behalf the Department adhere to agreed time-frames to avoid delays
in the implementation of projects and achieving targets in the
Annual Performance Plan.
8.3
The Minister ensures that the Department works closely with other
government departments and agencies through intergovernmental
structures and professional fora to unblock hindrances with regard to
providing signage to major tourist attractions throughout the country
and report to the Committee within six months of adoption of this
report on progress made in this regard.
8.4
The Minister persuades colleagues within the Cabinet for a speedy

and holistic implementation of the IMC recommendations to resolve
all outstanding Visa-related issues, including the requirement for
29
unabridged birth certificates, and Cabinet announcement on Visa

exemptions for BRICS countries, to ease travel and increase tourist
arrivals to the country and report to the Committee within three
months of adoption of this report on progress made.
8.5
The Minister ensures that the South African Tourism finalises

negotiations with the National Treasury and other partners on
final solution to mitigate currency losses and reports to
Committee within six months of the adoption of this report
progress made.
the
the
the
on
8.6
The Minister ensures that the Grading Council of South Africa

conducts a policy review of its mandate as espoused in the Tourism
Act (Act no. 3 of 2014) and presents the policy proposals to the
Committee during the legislative review process.
8.7
The Minister ensures that the National Conventions Bureau

provides a quarterly breakdown of the 138 meetings planned for
2016/17 and specify the expected number of delegates and revenue
to be generated by each meeting; indicate in which provinces, cities,
or towns the meetings will be held, and a plan to deal with
geographic spread and submit this addendum to the Committee when
South African Tourism comes for the first quarter reporting for
2016/17 financial year.
8.8
The Minister considers a policy review on TOMSA Levy collection

and investigates other modalities for private sector funding of
tourism in South Africa.
Report to be considered.
2.
REPORT OF THE PORTFOLIO COMMITTEE ON JUSTICE

AND CORRECTIONAL SERVICES ON BUDGET VOTE 18:
CORRECTIONAL SERVICES, DATED 21 APRIL 2016
The Portfolio Committee on Justice and Correctional Services, having

considered the Department of Correctional Services 2016/17 budget (Vote
18) and the annual performance plan, reports as follows:
30
1.
INTRODUCTION
1.1
Section 27 of the Public Finance Management Act (No. 1 of 1999)

makes provisions for a minister to table the annual budget for a
financial year in the National Assembly before the start of that
financial year. Section 10(1)(c) of the Money Bills Amendment
Procedures and Related Matters Act (No. 9 of 2009) makes provision
for ministers to table strategic and annual performance plans for their
respective departments, public entities or institutions, which must be
referred to the relevant portfolio committee for consideration and
report.
1.2
The above-mentioned budget and planning documents were tabled in

March 2016. The Committee subsequently received a political
overview of the budget from the Minister of Justice and Correctional
Services (the Minister), Adv. Michael Masutha, and a briefing led
by the National Commissioner for Correctional Services (the
National Commissioner), Mr Zach Modise, on the 2016/17 APP and
budget allocation.
1.3
The DCSs mandate is derived from the Correctional Services Act

(No. 111 of 1998), as well as the white papers on Correctional
Services (2005) and Remand Detention Management in South Africa
(2014). The legislation and policies inform all the DCSs efforts
towards achieving the safe and humane detention of offenders and
remand detainees, and their rehabilitation and reintegration into
communities.
1.4
The DCSs strategic planning is informed by the above-mentioned

legislative and policy provisions, as well as the government-wide
Medium-Term Strategic Framework (MTSF) 2014-19, which is
geared towards the implementation of the National Development
Plans (NDP) Vision 2030.
31
2. POLITICAL OVERVIEW BY THE MINISTER OF JUSTICE

AND CORRECTIONAL SERVICES
2.1
According to the Ministers foreword in the DCSs 2016/17 Annual

Performance Plan (APP), the DCS is making steady progress as far as
the transformation of the correctional system from a punitive system
aimed at punishing offenders, to one that provides rehabilitation
programmes to address offending behaviour, and prepare offenders to
be law-abiding citizens once their sentences have expired.
2.2
In his overview of issues affecting the DCS, the Minister highlighted

the review of the parole regime, the need to reduce recidivism,
developments with regard to the DCSs IT capabilities and proposals
for how the DCSs challenges with regard to infrastructure
development and minor maintenance work may be addressed.
2.3
The above-mentioned shift in focus has necessitated several reviews

of the DCSs policies and practices. For instance, several weaknesses
in the correctional supervision and parole regime have been detected.
The National Council for Correctional Services (NCCS) has therefore
reviewed the entire parole regime. They are expected to present their
findings and recommendations to the Ministry in the near future.
2.4
The correctional system has to be especially responsive to the needs

of young offenders who had to be equipped with skills to
reduce/prevent recidivism. Many ex-offenders complain that their
inability to secure employment contributed to their recidivism. A
criminal record prohibited them from seeking employment in certain
sectors. However, there were many other sectors in which exoffenders with could seek employment despite having a criminal
record. Employers had to be sensitised to the difficulties ex-offenders
were confronted with owing to the stigma attached to having been
incarcerated. Society at large, too, has to open up to offenders.
Recidivism would only be reduced through cooperation between
communities, business, civil society and the government.
32
2.5

The DCSs Information and Communications Technology (ICT)
environment remained a cause for concern. The DCS is key roleplayer
to the success of the Integrated Justice System (IJS), which seeks to
create digital synchrony and modernisation of the Criminal Justice
System (CJS). This modernisation of ICT infrastructure and systems
was recommended by the Criminal Justice Review Committee, and
forms part of the Seven Point Plan aimed at enhancing the CJS. The
DCS was in the process of procuring an integrated inmate
management system (IIMS) which is a fully automated transversal
system designed to feed into the IJS. The IIMS will, for the first time,
connect the DCSs approximately 240 correctional centres, thereby
ensuring that inmate information is instantly and seamlessly
accessible to all relevant stakeholders in the value chain.
2.6
On infrastructure, the Minister reminded the Committee that in the

past the DCS had been almost entirely self-sufficient as far as capital
works projects and maintenance were concerned. Given the
constraints the Department of Public Works (DPW) was contending
with, and in light of the continued government-wide austerity
measures, it may be appropriate to consider restoring the DCSs
capacity to, as far as is practical, deliver its own infrastructural
projects, and be responsible for maintaining existing infrastructure.
3.
STRATEGIC GOALS FOR 2016/17
3.1
According to its 2015/16 to 2019/20 strategic plan, the DCSs mission

is to contribute to a just, peaceful and safer South Africa through the
effective and humane incarceration of inmates, and the rehabilitation
and social reintegration of offenders. The DCS committed to playing
its role to ensure that the MTSF and the NDPs strategic outcomes are
achieved. The overarching goal is to build a safer South Africa where
all people are and feel safe.

3.2
33
To this end the DCS has committed to:

-
providing all remand detainees and sentenced offenders with

safe, secure and humane conditions of detention and
incarceration;
ensuring
that
remand
detainees
attend
court
as
prescribed/required, and that they are provided with services

responding to their needs, including personal wellbeing
programmes; and
-
attending to sentenced offenders health care, rehabilitation

and social reintegration needs.
4.
Overview of the DCSs budget
4.1
The JCPS cluster will receive approximately R166,892 billion in

2016/17. This constitutes 23 per cent of the total national budget.
Table 1 illustrates the allocation across the cluster.
Justice, Crime Prevention and Security
2016/17
Cluster
(R000)
Correctional Services
21 577.3
13%
Defence and Military Veterans
47 169.7
28%
Independent Police Investigative Directorate 246.1
% of Cluster Vote
0.14%
16 049.7
9.6%
865.0
0.52%
Police
80 984.9
48.5%
Total for Cluster
166 892.7
Total appropriation by Vote
721 148.2
Justice and Constitutional Development

Office of the Chief Justice and Judicial
Administration
4.1
23.1% of national
budget
As illustrated above, the DCS received approximately R21,577 billion

i.e. 3 per cent of the national budget, and 13 per cent of the JCPS
clusters allocation. Expenditure is projected to increase by 6.3 per cent
annually, to approximately R24,7 billion by 2018/19.
34
4.2
The DCSs budget is distributed across the following five

programmes:
Administration
(Programme
1),
Incarceration
(Programme 2), Rehabilitation (Porgramme 3), Care (Programme 4),

and Social Reintegration (Programme 5).
4.3
As in previous years, the bulk of the allocation, about 81 per cent,

goes towards the Administration and Incarceration programmes
which receive 18 per cent and 63 per cent respectively. The
Rehabilitation and Social Reintegration programmes again receive the
lowest allocations, which when combined only amount to 9.6 per cent
of the total DCS budget 0.8 per cent less than in 2015/16. As in the
previous year, the Care programme will receive 9 per cent of the
budget. This trend will continue over the medium-term, as is
illustrated in Table 2 below.
PROGRAMME
2016/17
2017//18 2018/19
2016/17 to 2018-19
3 876,2
4 199,5
12 533,9
Programme 2: Incarceration
13 700,9 14 498,4 15 624,2
43 823,5
Programme 3: Rehabilitation
1 217,3
1 439,2
1 541,4
4 197,9
Programme 4: Care
1 975,1
2 010,7
2 122,8
6 108,6
901,1
954,2
2 663,1
Programme 5: Social Reintegration 807,8

Total Expenditure Estimates
4 458,2
21 577,3 23 048,9 24 700,8
69 327,0
Table 2: Projected spending over the medium-term

5. Overview of allocations per programme
5.1
5.1.1. The Administration programme provides for the functions that

underpin the DCSs service delivery, and comprises administrative,
management, financial, information communication and technology,
research, policy co-ordination and good governance support
functions. The sub-programmes in this programme have increased
from seven to eight: Ministry, Judicial Inspectorate for Correctional
Services (new), Management, Human Resources, Finance, Internal
Audit, Information Technology and Office Accommodation.
35
5.1.2. This programme receives the second largest allocation i.e.

R3,9 billion, which amounts to a 4.92 per cent increase on the
previous years allocation. The bulk of the allocation will again go
towards the compensation of employees (76 per cent) with goods
and services and computer services receiving 19 per cent and
3 per cent respectively. Table 3 illustrates the budget allocation
across this programme
PROGRAMME
2015/16 2016/17
Nominal Real
(R000) (R000)
Changes Change change

(%)
Programme 1:
Nominal
Real change
(Rand)
(%)
(Rand)
-1-58%
181.7
-58.3
2.0%
-2.0
-044
26.56%
16.9
12.9
3 697.3
3 876.2
4.92%
32.6
34.6
6.13%
48.4
65.3
34.92%
Management
717.2
739.9
3.17%
-3.22%
22.7
-23.1
Human Resources
1 516.9
1 670.3
10.11%
3.30%
22.7
-23.1
Finance
990.9
957.0
-3.42%
-9.40%
-33.9
-93.2
Internal Audit
89.7
95.3
6.24%
-0.33%
5.6
-0.3
Information Technology
238.7
235.3
-1.42%
-7.53%
-3.4
-18.0
Office Accommodation
60.2
78.5
30.40%
22.33%
18.3
13.4
Administration
Sub-programmes
Ministry
Judicial Inspectorate for
Correctional Services
Table 3: Administration programme
6.1.4 Key targets for 2016/17 include:

-
filling 92 per cent of funded posts;
increasing the number of officials trained in line with the

Workplace Skills Plan (WSP), by 1 850 to 20 000; and
5.2.
reducing audit qualifications to zero.
5.2.1. The Incarceration programme provides for services and wellmaintained physical infrastructure that support safe and secure
conditions of detention consistent with protecting the human dignity
of inmates, personnel and the public. It also provides for profiling,
36

compilation of Correctional Sentence Plans (CSPs), administration
and other interventions. It comprises four sub-programmes: Security
Operations, Facilities, Remand Detention and Offender Management.
5.2.2 Over the MTEF, expenditure on this programme is projected to

increase
significantly
from
R13,1
billion
in
2015/16
to
R15,624 billion in 2018/19. The programme continues to receive the

largest allocation R13,7 billion, constituting a 4.98 per cent increase
on the previous financial year. The largest share of the allocation will
go towards the Security Operations sub-programme, which will
receive 49 per cent of the allocation. The Facilities, Offender
Management and Remand Detention sub-programmes will receive
29 per cent, 17 per cent and 5 per cent respectively.
5.2.3 Spending on this programme is projected to reach R15,6 billion by

2018/19, an increase which is largely ascribed to increases to the
compensation of employees item, and increased expenditure on
capital assets. Table 4 illustrates the allocation across the programme.
PROGRAMME
2015/16 2016/17 Nominal Real

(R000) (R000) changes
(%)
Programme 2:
13 051.5 13 700.9 4.98%
Nominal Real
change Change
change
(%)
(Rand)
(Rand)
-1.52
649.4
-198.9
Incarceration
Sub-programmes
Security Operations 6 528.0
6 775.7
3.79%
-2.63%
247.7
-171.8
Facilities
3 827.9
3 949.6
3.18%
-3.21%
121.7
-122.8
Remand Detention
821.8
684.5
-16.71%
-21.86% -137.3
-179.7
Offender
1 926.5
2 291.0
18.92%
11.56% 364.5
222.7
Management
Table 4: Incarceration programme
5.2.4. Key targets for 2016/17 include:

-
reducing the percentage of inmates allegedly injured in

assaults to 3.7 per cent;

-
37
reducing the percentage of escapes from correctional and

remand centres from 0.025 per cent to 0.024 per cent;
5.3
reducing the percentage of unnatural deaths to 0.033 per cent;
creating 925 additional bed spaces; and
down-managing overcrowding to 32 per cent.
5.3.1 The Rehabilitation programme provides for needs-based programmes

and interventions to facilitate offenders rehabilitation and eventual
reintegration. It comprises three sub-programmes: Correctional
Programmes, Offender Development and Psychological, Social and
Spiritual Services.
5.3.1
Although the allocation reflects a nominal increase of 5.37 per cent,

the programme again receives the second lowest allocation 5.6 per
cent of the DCSs overall allocation. Most of the allocation will go
towards compensation of employees. The largest allocation
R795,6 million will go towards the Offender Development subprogramme. Sub-programmes Psychological, Social and Spiritual
Services and Correctional Programmes receive R371 million and
R51 million respectively. Table 5 illustrates the allocation across the
programme.
PROGRAMME
2015/16
2016/17
Nominal
Real
Nominal
Real
(R000)
(R000)
changes
Change
change
change
(%)
(%)
(Rand)
(Rand)
62.0
-13.4
1 155.3
1 217.3
5.37%
-1.16%
47.0
50.7
7.87%
1.19%
Offender Development 757.3
795.6
5.06%
Psychological, Social
371.0
5.70%
Programme
3:Rehabilitation
Sub-programmes
Correctional
Programmes
351.0
and Spiritual Services
Table 5: Rehabilitation programme
38
5.3.2

The DCS states that it is committed to reducing recidivism, and
recognises that rehabilitation programmes improve offenders
chances of reintegration. Key targets include:
-
increasing the number of sentenced offenders subjected to

correctional programmes from 68 per cent to 72 per cent;
increasing the number of offenders involved in Further

Education and Training (FET) programmes from 548 in 2015/16
to 603 in 2016/17; and
maintaining participation in skills development programmes at

80 per cent.
5.3.4 The target for involvement in psychological services has increased

from 15 per cent to 16 per cent in 2016/17. In 2014/15 the DCS had
exceeded the target in relation to spiritual service by almost 30 per
cent. The DCS nevertheless increased the target for 2015/16 by only
1 per cent to 56 per cent, and for 2016/17 to 57 per cent.
5.4 Programme 4: Care
5.4.1
The Care programme provides needs-based programmes and

services aimed at maintaining the personal well-being of offenders.
It comprises two sub-programmes: Nutritional Services, and Health
and Hygiene Services.
5.4.2
The programme will receive just over R1,97 billion of the DCSs
total allocation i.e. about 9 per cent of the total allocation. In
2016/17 the bulk of the allocation will go towards the Nutritional
Services sub-programme. Over the medium term spending will focus
on increasing the percentage of inmates tested for HIV and those
receiving antiretroviral therapy to 99 per cent in 2018/19. Table 6
illustrates the budget allocation across this programme.

PROGRAMME
Programme 4:
Care
39
2015/16 2016/17 Nominal
Real
Nominal
Real
(R000) (R000)
change
Change
change
change
(%)
(%)
(Rand)
(Rand)
3.15%
178.8
56.5
1 796.3
1 975.1
9.95%
1 130.8
19.24%
11.86%
182.5
112.5
844.3
-041%
-6.58%
-3.5
-55.8
Sub-programmes
Nutritional Services 948.3
Health & Hygienic
Services
847.8
Table 6: Care programme
5.4.3
Key targets for 2016/17 include:

-
increasing the percentage of inmates tested for HIV to 99 per

cent;
increasing the percentage of inmates receiving antiretroviral

therapy to 98 per cent; and
maintaining the TB cure rate at 85 per cent.
5.5 Programme 5: Social Reintegration
5.5.1
The Social Reintegration programme provides services focussed on

offenders preparation for release; for the effective supervision of
parolees; and for offenders reintegration into society. It comprises
three sub-programmes: Supervision; Community Reintegration; and
Office Accommodation (Community Corrections). The programme
receives 4 per cent of the DCSs total budget.
5.5.2
Over the medium term spending is projected to grow to

R951,6 million owing to, in the main, the rollout of the electronic
monitoring system (EMS). In 2016/17 the programme will receive
R807,8 million i.e. 9.3 per cent less than in 2015/16. The
Supervision sub-programme will receive 91 per cent of the
allocation, while the Community Reintegration and Office
Accommodation (Community Corrections) sub-programmes will
receive 5 per cent and 4 per cent respectively. Table 7 illustrates the
budget allocation across this programme.
40
PROGRAMME
2015/16
2016/17 Nominal
Real
Nominal
(R000)
(R000)
change
Change change
change
(%)
(%)
(Rand)
(Rand)
Real
Programme 5: Social
891.0
807.8
-9.34 %
-14.95% -83.2
-133.2
Supervision
751.3
733.4
-2.38%
-8.43%
-17.9
-63.3
Community Reintegration
42.8
42.7
0.23%
-6.41
-0.1
-2.7
44.2
31.7
-12.5%
-14.5
-28.28
-32.72
Reintegration
Sub-programmes
Office Accommodation:
Community Corrections
Table 7: Social Reintegration programme
5.5.3
Key targets for 2016/17 include:

-
increasing the number of probationers and parolees reintegrated

through halfway house partnerships by 30 to 140;
increasing the restorative justice programmes by offenders,

victims, parolees and probationers to 9 000;
increasing the percentage of parolees without violations to 96 per

cent, and the percentage of probationers without violations to 95
per cent;
increasing the number of service points established in

community corrections offices by 1 to 24; and
maintaining
the
number
of
persons
being
monitored
electronically at 1 000.
6. Observations and recommendations
6.1
Programme 1:Administration
6.1.1 The Committee notes the efforts underway to transform the DCS so as
to ensure that it executed its functions effectively. Given the size of
the Justice and Correctional Services-portfolio, the Committee hopes
that sufficient support is received from the Deputy Minister:
Correctional Services who has since June 2014 not yet meaningfully
interacted with the Committee on the portfolio he is responsible for.
The Minister had to be able to rely on, and have the support of his
41
deputies. Challenges experienced in this regard should be brought to

the Committees attention.
6.1.2 The Committee welcomes the appointment of the National

Commissioner and the Chief Deputy Commissioner: Strategic
Management, but notes with concern that the Chief Deputy
Commissioner: Human Resources post became vacant towards the
end of the 2015/16 financial year. Given the DCSs long-unresolved
challenges with regard to, for example, the occupational specific
dispensation, filling of vacancies, implementation of the seven day
establishment and the attraction and retention of professional
services, the vacancy should be filled as a matter of urgency.
6.1.3 We remain concerned about the fact that correctional services officials
are appointed in terms of either the Public Service Act (No 103 of
1994), or the Correctional Services Act. Officials appointed in terms
of the Public Service Act were barred from performing any duties at
correctional centres e.g. they cannot be re-deployed when centres
were under-staffed, making it difficult for the DCS to alleviate
pressures at centre-level. We again recommend that the Public Service
Commissions advice be sought with regard to the feasibility of
appointing all correctional services officials in terms of one act. The
Committee should be informed of progress made in this regard within
30 days of the adoption of this report.
6.1.4 In our Budgetary Review and Recommendation report dated
22 October 2015, we welcomed the proposal to establish nine regions
that mirror South Africas provinces, which was receiving the
Ministers attention at that time. We had then recommended that the
relevant authorities investigate the desirability of the devolution of
power to regional/provincial management offices. To date, little
progress has been reported in this regard. As previously recommended
the Committee should be provided with a comprehensive report on the
weaknesses of the current structure and how these would be
addressed in the DCSs new organisational arrangement. This
42

information should reach us within 30 days of the adoption of this
report. In addition, all future quarterly reports should include a
detailed assessment of the performance of each of the regions.
6.1.5 The Committee notes that the JICS is now a dedicated subprogramme, instead of a mere line item in the DCSs budget. We also
note the increase to the JICSs budget, the bulk of which will be spent
on filling long-standing vacancies. We believe that this development
should address some of the concerns raised regarding the JICSs
reliance on the DCS.
6.1.6 We believe that the recent appointment of Judge Johan van der
Westhuizen as the Inspecting Judge should bring some stability to the
organisation. We are also confident that given his academic record,
and vast experience as a judge he will bring new insights to how the
JICS may be strengthened. Related to this, we recommend that the
appointment of a suitably qualified Chief Executive Officer be fasttracked.
6.1.7 Given the increase to its budget, it is imperative that the JICS reports
regularly on its activities and performance. As recommended in the
past, the JICS should provide the Committee with detailed quarterly
reports outlining progress made as far as achieving its strategic
objectives and related targets.
6.1.8
The Auditor General of South Africa has persistently raised concerns

about the DCSs internal audit and control environment and its
perennial audit qualifications. The Committee therefore notes with
concern that the Internal Audit sub-programme, whose purpose is to
provide systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control and governance processes
does not have any performance indicators through which to measure
progress made. In 2015/16 the DCS spent R89,714 million on the subprogramme. This amount is projected to increase to R95,286 million
in 2016/17. In our view it is imprudent to, despite the large allocation
43
to be spent on this sub-programme, neglect to put in place measures to

monitor performance.
The DCS should develop measurable
performance indicators for this critical sub-programme. Such

indicators could include, for instance, submission of quarterly
Internal Audit and Risk Management performance reports to the Audit
and Risk Committee, reporting on the implementation of annual
Internal Audit plans, submission of interim and annual financial
statements to National Treasury and the Auditor-General timeously.
The DCS should provide the Committee with the indicators it has
developed within 30 days of the adoption of this report, and these
should be included in all quarterly reports.
6.1.9 The Committee notes the demarcation of the Information Technology

as a sub-programme, and the plans to roll out the IIMS. We have also
noted that a tender for the IIMS was awarded, and that National
Treasury disputed whether the DCS had adhered to the applicable
procurement processes. The Committee emphasises that procurement
processes and procedures should be adhered to at all times. Failure
to do so causes unnecessary delays in the completion of projects,
which in turn impacts on service delivery. In this case, further delays
in the delivery of an electronic tool for managing the inmate
population, will impact on the DCSs capacity to perform its role in
the IJS.
6.2
6.2.1 The DCS has for several years been unable to meet targets set in
relation to the creation of bed-spaces. This has largely been due to
long delays in the completion of capital infrastructure projects. We
note with interest the targeted number of bed-spaces to be created in
2016/17.
44
6.2.2 The Minister had in 2015 indicated that bi-laterals between himself
and the Minister of Public Works were underway to resolve
challenges as far as the DPWs delivery of infrastructure to the DCS.
It appears as though those discussions have borne little fruit. The
Minister is advised to, in order to ensure that his vision for the DCS is
executed, seek intervention from the relevant authority.
6.2.3
We agree that it may be necessary for the DCS to again assume

responsibility for its infrastructure and maintenance works. This
should be done through innovative and creative means that take into
account the economic situation and continued austerity, and must be
executed in line with principles of good governance, prescripts
related to supply chain management and excellent project
management.
6.2.4 The remand detention population remains a major contributor to

overcrowding. Although the remand population has decreased
dramatically
since
2009/10,
cluster-wide
efforts
to
reduce
overcrowding must be redoubled. Effective use should be made of all

applicable legislative provisions including bail protocols and section
49G of the Correctional Services Act which seeks to limit the period
of time accused were remanded in detention. In addition, every effort
should be made to accelerate the rollout of the electronic monitoring
system which, if properly managed, had the potential to drastically
reduce the inmate population. All future quarterly reports should
include updates on progress made as far as down-managing
overcrowding.
6.2.5 The Committee notes that allegations of assault, excessive force,
torture and inhumane conditions of detention and incarceration
continue to be levelled against the DCS. As in the past, we
recommend that the DCS give serious consideration to the use of
technology to increase safety within their facilities. The DCS should
provide the Committee with a detailed report on the feasibility of such
interventions. The information should reach us within 30 days of the
45
adoption of this report. In addition all future quarterly reports should

include a breakdown of all such allegations, the status of
investigations and remedies implemented to prevent them in future.
6.2.6
Related to the above, the JICS should ensure that the Committee is
provided with all their investigation reports in respect of assaults, use
of excessive force, unnatural deaths and torture.
6.3
6.3.1 The
White
Paper
on
Corrections
places
rehabilitation
and
reintegration at the centre of the DCSs activities. We have again

noted that although budgets for the Administration and Incarceration
programmes increased incrementally each year, increases to
programmes targeting offending-behaviour and offender development
remain miniscule, and go mostly towards the compensation of
employees, and other basic services. These programmes are key to
reducing the risk of recidivism which is the only true measure of the
DCSs success. We therefore recommend that the DCS explores
innovative ways in which the resources allocated and available to the
Rehabilitation and Reintegration programmes may be supplemented.
6.3.2 The growing number of youth in conflict with the law, is the result of
growing moral degeneration within the South African society. The
DCS only deals with the fallout of this degeneration. Corrections
should be treated as a societal responsibility, and all sectors should
play a role in addressing it.
6.3.3
Efforts to reintegrate offenders will only succeed if their rehabilitation

needs are met. The DCS should develop a comprehensive strategy to
address offenders rehabilitation needs. The DCS will not be able to
deliver such programmes on its own, and must as a matter of urgency
intensify efforts to partner with stakeholders in the private sector,
non-governmental organisations, faith-based and community-based
structures as well as the Moral Regeneration Movement (MRM).
46
6.4

Programme 4: Care
6.4.1 We note the targets set in relation to HIV-testing, anti-retroviral

therapy provided and the TB cure rate, and hope that these will assist
as far as curbing the spread of communicable disease, especially in
congested facilities.
6.4.2
The above-mentioned targets should form part of a comprehensive

strategy aimed at ensuring a healthier correctional environment and
should include adequate screening upon admission and upon release,
employing sufficient medical professionals to attend to inmates
needs, as well as well-managed and well-equipped pharmacies and
hospital sections.
6.4.3 The Committee acknowledges that the DCS is not equipped to

provide end-of-life interventions and palliative care to very sick
inmates. All inmates who are too sick and unlikely to recover should
be informed of their right to apply for medical parole, and be assisted
to do so. Applications should be tracked, and the relevant authority
informed of unnecessary delays in the finalisation of applications.
6.4.4
All future quarterly reports should include information on natural

deaths per quarter e.g. total number of deaths, causes and where
applicable measures in place to prevent them. The reports should
include information related to the number and status of medical
parole applications.
6.5
Programme 5: Social Reintegration
6.5.1 The services rendered under the Incarceration, Rehabilitation and

Reintegration programmes are key to the DCSs service delivery, and
key to reducing recidivism. As stated in previous reports, the DCSs
success in the rehabilitation and reintegration of offenders can only be
measured by determining the rate and circumstances of recidivism.
47
The continued failure to measure performance in this regard makes it

virtually impossible to measure the true impact of its rehabilitation
and reintegration activities. The DCS should provide the Committee
with a detailed report on progress made as far as developing a tool
whereby recidivism may be measured. The report should reach the
Committee within 30 days of the adoption of this report.
Report to be considered
3.
Report of the Portfolio Committee on Public Enterprises on the

Budget Vote 9: Public Enterprises and the annual performance
plan for 2016/17 of the Department of Public Enterprises, dated
20 April 2016
The Portfolio Committee on Public Enterprises, having received a briefing

from the Department of Public Enterprises on the strategic plan and the
budget vote reports as follows:
1.
Introduction
Guided by the Rules of Parliament, promulgated in terms of the Constitution,

the Portfolio Committee on Public Enterprise plays an oversight role on the
Ministry, Department and the entities. The Committee has to scrutinise the
strategic plan and annual performance plan of the Department and its entities
in order to see if the funds requested are aligned to the objectives as stated in
the respective strategic plan documents.
48
1.1
Background
The State has a developmental role to play and uses state-owned companies
as the primary tools to deliver on its developmental role. The developmental
role should support a number of economic and development goals including;
delivery of strategic infrastructure that will unlock growth potential in the
country; support of the wider economy and marginal business sectors and
support of economic recovery where needed. The State requires strategic,
organisational and operational capacity to play its developmental role. SOCs
fulfil the States operational role in this requirement, acting as the
implementing agents for national strategy.
1.2
Strategic Context
The current state of the economy presents a major challenge that needs to be
actively addressed by the State. The poor performance of the global
economy has exposed weaknesses in the domestic economy, which include:
Economic Outlook
Greater dependency on the commodities that are vulnerable to

changes in the global economy;
Level of concentration in the economy that undermines new

entrants;
Infrastructure network that is geared for commodities and not

support regional integration and industrialization;
Limited participation of the larger part of society which limits the

vicious cycle of sustained growth;
Investment in the Economy
Investments in the economy has remained below the National

Development Plan target;
The productive sectors of the economy has been worst affected with
investments in mining and manufacturing leveling off;
49
This present a major challenge for the economy and the investment
driven growth approach presented by Government in the New
Growth Path and National Development Plan;
This is requiring Government and its institutions to play a leading

role in the short to the medium term;
In 2005 investment by the public sector amounted to just over

R80 billion per annum;
Over a period of 10 years this has increased to R261 billion;
While private sector investment still represents a greater proportion

of total investment in the economy;
In 2013 private sector invested R412 billion but this has declined
between 2014 and 2015 and falling below the R400 billion level;
Private sector investments still dominated by mining and financial

services;
2.
Investment by manufacturing remains weak.

Strategic Plan of the Department of Public Enterprises
The Department of Public Enterprises presented their Strategic Plan to the

Portfolio Committee on Public Enterprises and elaborated a separate Annual
Performance Plan. The department described the overarching policy and
strategic direction and priorities of Government, as articulated in the State of
the Nation Address by the President, Budget Speech, and National
Development Plan.
2.1
Mandate of the Department of Public Enterprises
The mandate of the Department is to ensure that state-owned companies

within its portfolio are directed to serve Governments strategic objectives as
outlined in the National Development Plan and further articulated in the New
Growth Path, and the Industrial Policy Action Plan. The Department exercise
shareholder responsibility over the six state-owned companies. The
Department aims to ensure the financial sustainability of the state-owned
companies and supports the governments strategic priorities of economic
growth, expanding employment and developing infrastructure.
50
2.2

Strategic Objectives of the Department
The strategic objectives of the department has changed to place greater

emphasis on supporting the re-industrialisation programme of Government;
strengthening inter-governmental relations; greater joint planning and
execution between the Department and its portfolio of SOCs; active
engagement with society to make SOCs and Department more accountable to
the public as part of building confidence in the state and its institutions;
pursuing fewer high impact targets with greater influence in the
transformation of the economy and capacity building programmes to support
other spheres of Government.
The Department is focusing on implementing the National Development Plan

during the 2015/16 financial year. The main goal of the Department is to
ensure that the state-owned companies support the implementation of the
National Development Plan and contribute to the achievement of outcomes
outlined in the plan.
The Departments strategic goals over the medium term are to:
focus on improving the performance of the portfolio to ensure that
the companies can efficiently and effectively carry out their
mandates;
recognise the role that SOCs needs to play in the current economic
context to support the aspirations of the developmental state;
build on the progress that has been made in the Department to
promote good governance to turnaround the portfolio;
Build the capacity of the shareholder through internal reorganisation using existing resources;
Review the shareholder oversight to ensure alignment of SOC to
developmental outcomes;
Promote good corporate governance;
Stabilise SOCs by the strengthening of balance sheets and funding
options;
51
Drive economic infrastructure investment to enhance the capacity of

the economy with emphasis on the Strategic Integrated Projects;
Leverage SOCs procurement spend to support industrialisation and
transformation.
Table 1:
Illustration of Strategic Objectives, Outputs and

Impact
52
2.3

Policy Priorities for 2015/16
As a shareholder representative of Government, the Department does not

have the mandate for developing policies. However, some of the powers and
duties of the Department are intertwined with those of other Government
Departments who are key role players in the SOC regulatory environment.
These include the Department of Energy, the Department of Transport, and
the Department of Mineral Resources, among others.
However, the
Department and its SOCs are required to align with various other economic
policies such as the National Development Plan (NDP), the New Growth Path
(NGP), the Industrial Policy Action Plan and various other charters.
The Department does not directly execute programmes but seeks to leverage
off state ownership in the economy to support the delivery of key outcomes
outlined in the NDP and governments 2014-2019 Medium Term Strategic
Framework. Through its mandate, the department contributes to the NDPs
objectives through outcome 4 (decent employment through inclusive
economic growth) and outcome 6 (an efficient, competitive and responsive
economic infrastructure network). Over the medium term, the Department has
oversight of Alexkor, Denel, Eskom, The South African Forestry Company
(SAFCOL), South African Express (SAX) Airways and Transnet.
The Departments medium term focus will be on facilitating a conducive

environment for repositioning SOCs to advance their developmental mandate,
and enhance their financial ability. It will also prioritise enhancing the
efficiency of strategic transport corridors, including monitoring Transnets
Market Demand Strategy (MDS) to expand rail and pipeline capacity and
improve ports productivity. The Department will also prioritise the
implementation of governments support package for Eskom. Governments
support package to Eskom is intended to both improve Eskoms financial
sustainability and ensure that the build programme is delivered within the
timeframes specified. The stability of the electricity grid and the finalisation
of the build programme was highlighted in the Presidents State of the Nation
Address in February 2015. The Department will oversee the implementation
of catalytic projects that form part of strategic integrated projects, and it will
53
oversee the Competitive Supplier Development Programme (CSDP) as part

of deepening industrial capabilities.
The programme Administration gets the largest portion of the budget with
57.7 per cent, down from 59.3 per cent in the previous year. This is due to
the labour intensive nature of the Department, where most of the subprogrammes located here cuts across all the programmes. Programme 3:
Portfolio Management and Strategic Partnerships makes up the second largest
budget at 32.8 per cent, an increase on the 31.8 per cent received in the
previous financial year. The programme oversees the implementation of the
strategic integrated projects as well as the CSDP. The programme budget
increases to R93.9 million over the medium term. The Transnet and Eskom
oversight function is also located in this programme. Programme 2: Legal and
Governance receives the least with R26 million or 9.5 per cent of the
R274 million budget received in the 2016/17 financial year.
The majority of the Departments spending is on compensation of employees
at 60.5 per cent over the medium term. The number of personnel is expected
to remain constant at 226, excluding graduates and interns, over the medium
term.
The Department had similar policy priorities for the previous financial year of
2015/16, however the current priorities are more defined and aligned with the
priorities outlined in the State of the Nation address, including the
identification of non-core assets for disposal in order to strengthen the
balance sheets of the SOCs. This outcome will have to be added to the
Departments 2016/17 Annual Performance Plan, as it is a new objective and
was not mentioned in the 2015/16 Annual Performance Plan.
54
3.
Programmes of the Department
3.1
The purpose of this programme is to provide strategic leadership,

management, and support services to the Department.
The Departments core functions require significant administrative support,
and a substantial portion of the budget is in the Administration programme,
which has cross-cutting sub-programmes providing for intergovernmental and
international relations, strategic planning, monitoring and evaluation, and
communications.
Over the medium term, the majority of the allocation is within compensation
of employees, which will provide technical and administrative support to the
Department. Expenditure on compensation of employees constitutes 51.2 per
cent over the medium term. Expenditure on compensation of employees
increased between 2012/2013 and 2015/16 by 10.8 per cent due to funding
received for improved conditions of service.
Over the medium term,
expenditure on compensation of employees grows by 4.4 per cent from

R77.2 million to R87.9 million. The number of personnel is expected to
remain constant at 127 employees over the medium term.
Spending on consultants is expected to decrease by 12.6 per cent over the

medium term due to Cabinet approved reductions, however, consultants
remains 7.8 per cent of the budget over the medium term. Goods and services
constitute 46.3 per cent of the budget over the medium term. Travel and
subsistence constitute 10.2 per cent of the budget, and increases by 4.7 per
cent over the medium term, which is required by the programme to carry out
its oversight function of the state-owned companies, situated throughout
South Africa.
3.2
Programme 2: Legal Governance
The purpose of this programme is to provide legal services and corporate

governance systems, as well as facilitating the implementation of all legal
aspects of transactions that are strategically important to the Department and
55
state-owned companies, and ensures alignment with Governments strategic

intent by, among others, monitoring the performance indicators of SOCs.
The spending focus over the medium term will be on increasing the
programmes capacity to provide legal services, and transactions and contract
management support; and on facilitating the creation of a legislative
framework for the Departments mandate to ensure compliance with
applicable legislation and enhance corporate governance procedures by stateowned companies. The programmes average budget has stayed the same
over the 2012/13 - 2015/16 period. The programmes budget is expected to
increase by 5.8 per cent from R23.5 million in 2015/16 to R27.9 million in
2018/19.
The sub-programme Legal constitutes the largest unit of the programme at

53.9 per cent of the budget over the medium term, followed by the subprogramme Governance at 33.6 per cent. The Legal unit increases by 7.2 per
cent from R12.2 million in 2015/16 to R15.1 million in 2017/18.
Over the medium term, 75.6 per cent of the programmes budget is allocated
to be spent on compensation of employees over the medium term, with the
number of personnel expected to remain constant at 20 employees over the
medium term. Compensation of employees increases by 3.3 per cent over the
medium term, from R18.5 million in 2015/16 to R20.4 million in 2018/19.
Expenditure on consultants is expected to increase by 24.2 per cent over the
medium term from R1.7 million in 2015/16 to R3.3 million in 2018/19. Legal
services increase by 6.2 per cent over the medium term, from R2.1 million in
2015/16 to R2.5 million in 2018/19. Travel and subsistence decreased by
27.5 per cent from 2012/13 to 2015/16, travel and subsistence however,
increases by 11.5 per cent to R1.5 million over the medium term.
3.3
Programme 3: Portfolio Management and Strategic Partnerships
The purpose of the programme is to align the strategies of the SOCs with
government policy and strategy, and monitor and benchmark their financial
and operational performance and capital investment plans. Align shareholder
56
oversight with overarching government economic, social and environmental

policies and build focused strategic partnerships between the SOCs, strategic
customers, suppliers and financial institutions.
Over the period 2011/12 and 2014/15, Energy Enterprises and Manufacturing
enterprises constituted approximately 90 per cent of the programmes budget.
This was due to the following transfers:
R118.3 million in 2012/13, R57.3 million in 2013/14, R63.1 million

in 2014/15 and R33.1 million in 2015/16 to Denel for indemnity
claims and a further R700 million in 2012/13 to recapitalise the
company in the Manufacturing sub-programme; and
R350 million in 2012/13 to Alexkor in order to address obligations

in terms of the deed of settlement in the Manufacturing subprogramme.
Eskom will receive R23 billion for the enhancement of electricity

generation capacity and security of supply, as mentioned above.
Over the medium term, the programmes budget decreases by 84.0 per cent
from R23.1 billion in 2015/16 to R93.9 million in 2018/19. The decrease is
due to the Department projecting not to make any further transfers to the
state-owned companies in the foreseeable future. The programme, however,
remains the departments most significant programme, with a budget of
R275.2 million over the medium term.
Through this programme, the
department will support governments build programme and the overall

strengthening of the SOCs balance sheet by developing innovative funding
structures and designing the associated compacts with SOCs. The Department
will also support the IPAP by enhancing the CSDP as part of governments
localisation scheme.
3.3.1
Sub-programmes
The sub-programme Energy Enterprises purpose is to strengthen the

departments oversight role by ensuring the alignment of shareholder
strategic intent in relation to the SOCs role in achieving government
objectives in the energy sector, on an on-going basis. The Department will
57
oversee Eskoms support package and ensure that the entities build
programme contributes to the countries growth objectives. The budget for
Energy is expected to decrease by 90.7 per cent over the medium term, from
R23 billion in 2015/16 to R18.4 million in 2018/19. The budget decrease
over the medium term is skewed due to the once-off Special Appropriation of
R23 billion in the 2015/16 financial year. Over the next three financial years
until 2018/19, the programme constitutes 19.7 per cent of the total
programme expenditure.
The sub-programme Manufacturing Enterprises oversees the SOCs in the

defence, mining and forestry sectors, these being Denel, Alexkor and
SAFCOL. The budget decreases from R52.7 million in 2015/16 to
R21.7 million in 2018/19, a decrease of 25.6 per cent in nominal terms. The
decrease is due to the R33.1 million the sub-programme received during the
Adjusted Appropriations for the indemnity payment to Denel. Thus the
budget of R20.7 million in 2016/17 may not be a true reflection of the subprogrammes budget if another indemnity payment is made to Denel during
the 2016 Adjusted Estimates of National Expenditure (AENE).
The sub-programme Transport Enterprises oversees the Transnet and South

African Express Airways. The Department has prioritised enhancing the
efficiency of strategic transport corridors which includes the monitoring of
Transnets market demand strategy to expand rail and pipeline capacity and
improve ports productivity. They will continue to enter into compacts with
Transnet on improving efficiency and on capital projects aimed at creating
capacity. In consultation with the Department of Transport and Transnet, the
Department will review the impact of pricing in freight logistics.1 The budget
for the sub-programme constitutes 27.1 per cent over the medium term of the
programme budget. The sub-programme budget increased in nominal terms
by 2.7 per cent from R23.1 million in 2015/16 to R25.1 million in 2018/19.
The nominal increase is due to the shift of South African Airways to the
National Treasury.
58
The sub-programme Economic Impact and Policy Alignment ensures

policy alignment of SOCs sustainability, economic and social transformation
agendas, and compliance with environmental laws, conducts macroeconomic
modelling and research as well as economic impact assessments of the SOCs.
The sub-programmes budget constitutes 15.9 per cent of the programmes
budget over the medium term. The sub-programmes budget increases in
nominal terms by 2.2 per cent from R14.3 million in 2015/16 to R15.3
million in 2018/19.
The sub-programme Strategic Partnerships oversees the implementation of

catalytic projects, the implementation of innovative funding structures, and
implementation of the competitive supplier development programme. It also
supports the coordination of the strategic infrastructure projects led by the
SOCs in its portfolio. The sub-programme constitutes 14.3 per cent of the
programme over the medium term. The sub-programmes budget increases in
nominal terms by 10.6 per cent from R10 million in 2015/16 to R13.5 million
in 2018/19.
Compensation of employees constitutes 70.9 per cent of the programmes

budget over the medium term, with goods and services accounting for
29.1 per cent. Compensation of employees increases by 4.3 per cent from
R57.5 million in 2015/16 to R65.2 million in 2018/19. Personnel in the
programme is projected to remain constant at 79 over the medium term.
Goods and services is expected to increase by 3.2 per cent over the medium
term from R26.1 million in 2015/16 to R28.6 million in 2018/19.
The
Department makes use of consultants for specialised services in transport,

manufacturing and energy sectors, which is still a necessity, thus consultants
increase by 9.5 per cent over the medium term from R16.1 million in 2015/16
to R21.1 million in 2018/19. Consultants accounts for 21.0 per cent of the
budget over the medium term. This increase in consultants is allowed by the
decrease in consultants in Programme 1: Administration.

3.4
59
Budget
As stated above over the medium term the Department will focus on
strengthening its oversight functions, increasing the public sectors
investment in the economy, reducing SOCs reliance on the fiscus, and
ensuring the financial sustainability of SOCs.
Table 2
Nominal
Rand
change
Budget
Programme
R million
Nominal Real %
% change change
2016/17 2017/18
2018/19
2015/16-2016/17
2015/16-2016/17
Programme 1:
Administration 151.9
158.0
161.4
168.2
6.1
-3.7
4.02 per
cent
-2.42 per
cent
Programme 2:
Legal and
Governance
23.5
26.0
26.7
27.9
2.5
0.9
10.64 per
cent
3.79 per cent
Programme 3:
Portfolio
Management
and Strategic
Planning
23 107.2
90.0
91.4
93.9
-23 017.2 -23 022.8
-99.61 per -99.63 per

cent
cent
289.9
-23 008.6 -23 025.6
-98.82 per -98.90 per

cent
cent
TOTAL
2015/16
Real
Rand
change
23 282.6
274.0 279.5
Table 2 describes the changes in allocations from the years 2015/16 and
2016/17, and the outer years of the MTEF. From this the following can be
concluded. Programme 1: Administration, has a nominal increase of 4.0 per
cent in 2016/17, with real decrease of 2.4 per cent. Programme 1 accounts for
the largest allocation of the Departments overall budget with 57.7 per cent of
the budget in 2016/17. Programme 2: Legal and Governance receive the
smallest allocation of 9.5 per cent in 2016/17. The programme increases by
10.6 per cent in 2016/17 or in real terms by 3.8 per cent. Programme 3:
Portfolio Management and Strategic Partnerships accounts for the second
largest allocation of the budget, accounting for 32.9 cent of the budget in
2016/17. Programme 3 allocations has decreased by 99.6 per cent in nominal
terms and 99.6 per cent in real terms from R23.1 billion in 2015/16 to
R90.0 million in 2016/17.
This large decrease is due to the Special
Appropriation of R23 billion received by the Department in aid of Eskom.

60
Overall the Departments budget decreases by 98.8 per cent in real terms
from R23.3 billion in 2015/16 to R274.0 million in 2016/17.
Compensation of employees amounts to 60.5 per cent of the total budget over
the medium term, with goods and services amounting to 38.0 per cent over
the medium term.
4.
Committee Observations:
4.1
The Committee made the following observations:
4.1.1 the personnel budget of the department is too biased towards the
administration rather than sector specific specialists required for
oversight.
4.1.2 the process of introducing the Shareholder Management Bill has been
too slow, and nothing has been brought to Parliament since the tabling
of the Presidential Review Committee (PRC) recommendations.
4.1.3 SOCs have not done enough to create black industrialists and local
industries, furthermore there is a need for a more radical approach to
advance localization and beneficiation.
4.1.4 SOCs are excluded from incentives provided to the private sector for
job creation and do not receive any assistance from development
finance institutions.
4.1.5 the absence of remuneration standards for SOCs exacerbates the
inequalities and inconsistencies in parastatals as a whole.
4.1.6 the non-issuing of shareholder compacts to the Committee have an
adverse impact on the oversight work of the Committee.
4.1.7 the vacancies in the executive positions of SOCs need to be filled
expeditiously as they have an impact on the stability of the
companies.
4.1.8 the corporate social investment programmes of SOCs have not yet
adequately reached out to rural and poor communities.
4.1.9 the high level of policy uncertainty created by the non-implementation
of the Presidential Review Committee recommendations jeopardises
the future of the Department of Public Enterprises.
61
4.1.10 the department is still too dependent on the use of consultants, and
expenditure will be increasing over the medium term.
4.1.11 there is a lack of progress in the implementation of the
recommendations of the Presidential Review Committee on SOCs.
4.1.12 there is a lack of public communication strategies by the SOC to
inform the country of the work they are doing to assist the South
African economy.
5.
Recommendations
The Committee recommended that the Minister of Public Enterprises should

ensure that the Department of Public Enterprises:
5.1
implements all the recommendations of the Presidential Review

Committee that are relevant to the Department of Public Enterprises,
in particular the remuneration standards of SOCs.
5.2
considers fast-tracking the shareholder management bill to empower

the Department to execute its shareholder management responsibility
and oversight over SOCs.
5.3
considers introducing a comprehensive plan to expand the corporate

social investments of SOCs to rural parts of the country.
5.4
develops a communication strategy for all SOCs, in order to promote

the companies, educate and inform the public and rural communities
about the work of SOCs and opportunities that they offer.
5.5
considers reallocating part of the budget allocated for the programme

administration to the sector oversight programmes, specifically
regarding compensation of employees.
5.6
fills all vacancies in executive positions of SOCs and within the

Department of Public Enterprises within an agreed timeframe.
5.7
reduces the use of consultants and invests in building internal capacity

through incentivizing scarce and critical skills and investing in a skills
development programme to ensure that the department is properly
resourced.
62
5.8

makes the shareholder compacts available to the Committee to enable
the Committee to effectively execute its oversight responsibility over
SOCs.
5.9
engages the National Treasury and the Department of Trade and

Industry with regard to SOCs accessing the incentives provided to the
manufacturing sector and developmental finance institutions.
6.
Conclusion
Having considered the budget vote and the strategic plan of the Department
of Public Enterprises, the Committee recommends that the House passes the
budget.
Report to be considered.

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Friday, 22 April 2016]

No 492016] THIRD SESSION, FIFTH PARLIAMENT

REPUBLIC OF SOUTH AFRICA

Correspondence from President - reprimands to Ministers .................. 1

Correspondence from President - reprimands to Ministers

[Friday, 22 April 2016

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

[Friday, 22 April 2016

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

[Friday, 22 April 2016

Report of the Portfolio Committee on Tourism for

The Portfolio Committee on Tourism, having considered Budget Vote No.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]

2. The Committee process

The policy environment

[Friday, 22 April 2016

Capturing of biometrics at ports of entry, starting with a pilot at OR

Ensure economic, efficient and effective use of departmental

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]

Spending focus during the Medium Term Expenditure Framework

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

[Friday, 22 April 2016

Table 1: Programme allocation

8.48 per cent

Source: National Treasury (2016) Vote 33 Tourism

The activities of the Department of Tourism are organised in the following

The purpose of this programme is to provide strategic leadership, centralised

Table 2: Budget allocation for Programme 1

1.6 per cent

-4.67 per cent

Source: National Treasury (2016) Vote 33 Tourism

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]

The growth in expenditure for the Administration programme is accounted

Programme 2: Policy and Knowledge Services

The budget allocation for Programme 2 is illustrated in Table 3. The purpose

4.82 per cent -1.67 per

5.5 per cent -1.04 per

Source: National Treasury (2016) Vote 33 Tourism

[Friday, 22 April 2016

Programme 3: International Tourism

The budget allocation for Programme 3 is presented in Table 4. The purpose

National Treasury (2016) Vote 33 Tourism

Friday, 22 April 2016]

Programme 4: Domestic Tourism

The purpose of the Domestic Tourism Programme is to provide policy and

-11.56 per -17.04

Source: National Treasury (2016) Vote 33 Tourism

South African Tourism

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

[Friday, 22 April 2016

The strategic objectives for 2016 2021 were summarised as follows:

Strategies to achieve strategic objectives

South African Tourism has developed seven new strategies aimed at

Invest in selected markets for leisure tourism to deliver

International Tourism Marketing

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 492016

Friday, 22 April 2016]