Department of Transport Annual Report Presentation 2015/16 NCOP 24 January 2017 1

Contents Background DoT Overall Performance Performance per Programme Provincial Focus Human Resource Management Human Resource Development DoT Equity Statistics Financial Statements 2015/16

Background Report focuses on the progress made with the implementation of programmes & projects in 2015/16 Focus was on optimal performance of deliverables in terms of the MTSF & MTEF Targets were guided by the outcomes-based approach (Outcome 4, 6, 7 & 10)

Overview of the Transport Sector for the 2015/16 Financial Year NDP emphasizes necessity of sound economic infrastructure as a pre-condition for economic growth; The APP 2015/16 highlights the DoT’s commitment to address major social and economic challenges facing the sector through interventions aimed at accelerating service delivery, increasing job opportunities, rural development and skills development; This report emphasizes the DoT’s continued restatement of the need for increased investments in public transport infrastructure, restructuring of current subsidies to promote integrated settlements and transport infrastructure projects to improve access to opportunities for the urban and rural poor.

Overall % Achievement – 90% Annual Performance Total Number of targets - 50 Targets Achieved - 45 targets Targets Not Achieved - 5 targets Overall % Achievement – 90%

Annual Performance… 88% 78% 100% 75% 90% PROGRAMME Total Number of Targets Number of Targets Achieved Number of Targets Not Achieved Percentage Performance 1. Administration 8 7 1 88% 2. Integrated Transport Planning 9 2 78% 3. Rail Transport 5 100% 4. Road Transport 4 5. Civil Aviation 6. Maritime Transport 6 75% 7. Public Transport 8. Dept. of Transport 50 45 90%

Department Of Transport (Summary of performance per programme) Total no of targets Achieved 2015/16 Year-to-Year Achieved Targets % % Achieved 2014/15 Improved or Dropped ADMINISTRATION (ODG, CFO, COO, TIS) 8 7 88% 72% ITP 9 78% 67% RAIL 5 100% ROAD 4 90% CIVIL AVIATION 75% MARITIME 6 22% PUBLIC TRANSPORT DOT (OVERALL) 50 45 73%

Key Achievements Programme 1: Administration 53 interns were appointed and placed with effect from April 2016 translating in 7.6% of staff establishment. Health and Wellness campaings conducted; 256 electronic news updated and circulated; DoT Language Policy reviewed; Engagement with Government Communication and Information System (GCIS) conducted on the DoT Corporate Identity Manual; 98% of Presidential Hotline cases resolved as at the end of Q4 International Relations Strategy approved Departmental Intranet site finalised and rolled out Implementation of action plans to address audit findings monitored on a quarterly basis; and action plans for strategic risks monitored on a quarterly basis

Key Achievements… Programme 2: Integrated Transport Planning Drafts of the frameworks for Infrastructure Funding and Transport Funding were completed and submitted for approval as targeted The Road Freight Strategy was also completed and submitted for approval The Single Transport Economic Regulator (STER) Bill was submitted to Cabinet and consultations on subsidiary regulations conducted with the Ports Regulator The Private Sector Participation (PSP) Framework was successfully developed and is being transferred to the National Treasury for inclusion (as a chapter) in the overarching PSP currently being developed by the National Treasury The draft of the Green Transport Strategy has been successfully developed as targeted during the period under review.

Key Achievements… Programme 3: Rail Transport The draft White Paper on National Rail Transport Policy has been finalised Guidelines for submission of rail economic regulatory information were completed and approved during the period under review The Branchline Strategy has been finalised and will be presented at the next sitting of the Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster The Draft National Railway Safety Regulator Bill has been successfully developed during the period under review The draft National Railway Safety Stratey has been completed and consultations on the draft strategy conducted with Passenger Rail Agency of South Africa (PRASA) and Rail Safety Regulator (RSR) during the period under review

Key Achievements… Programme 4: Road Transport The draft Green Paper on the Roads Policy has been completed and submission to Cabinet has been approved All approved Provincial Road Maintenance Grant (PRMG) projects have been monitored in line with the budget. An Annual Monitoring Report has also been compiled as submitted for quality assurance The Status Quo Analysis Report for the development of the Access Road Development Plan has been completed and submitted for quality assurance The Administrative Adjudication of Road Traffic Offences (AARTO) Amendment Bill was submitted and approved by Cabinet during the period under review. The Bill will be submitted to Parliament in the new financial year.

Key Achievements… Programme 5: Civil Aviation The National Civil Aviation Policy (NCAP) and the National Airports Development Plan (NADP) have been completed and submission to Cabinet has been approved Air service agreements were reviewed with Egypt, Guinea, Guinea-Bissau, Mauritius, Curacao, Namibia, Turkey, Australia, Israel, Austria, Serbia and Sierra Leone during period under review A draft Civil Aviation Amendment Bill was completed during Quarter 4 and submitted for quality assurance A monitoring report on the upgrade of Mthatha Airport was completed and recommendations on the transfer of the asset to the Eastern Cape Provincial Government were duly approved.

Key Achievements… Programme 6: Maritime Transport Drafts of the Cabotage Strategy and Cabotage Bill were completed and submitted for quality assurance The African Maritime Charter was approved by Cabinet in May 2015 and by Parliament in February 2016

Key Achievements… Programme 7: Public Transport The Reviewed Rural Transport Strategy has been completed and submission to Cabinet has been approved The National Learner Transport Policy was approved by Cabinet and subsequently published for implementation as targeted during the period under review A total of 3 226 old taxi vehicles were scrapped during the period under review due to the increase in demand by operators; and the Taxi Recapitalisation Programme (TRP) Review Document was developed and submission of the report to Cabinet has been approved Final draft of the Integrated Public Transport Turnaround Plan was completed and submitted for quality assurance

Provincial Focus Targeted interventions to improve rural access, infrastructure and mobility aimed at the poor and indigents The DoT has developed integrated Public Transport Networks (IPTNs) in rural municipalities of Bojanala and the OR Tambo District in the North West and Eastern Cape Provinces respectively, to improve access of public transport to the poor. The National Learner Transport Policy was approved by Cabinet in the 2015/16 financial year and has been commissioned for implementation. The implementation of this policy will ensure the provision of norms, standards and operational guidelines for leaner transportation This policy will also enhance a safe transportation environment by ensuring that operators comply with the National Road Traffic Act (Act 93 of 1996) as well as the provisions of the National Land Transport Act (Act 33 of 2009) The Shova Kalula Project distributed 3,500 bicycles to schools

Provincial Focus… Road Infrastructure Maintenance The S'Hamba Sonke programme, supports the government’s job creation drive and also provide a platform for empowerment for small contractors. With regard to the development of the integrated rural roads plan for the country, the DoT has aligned its rural gravel roads plan with that of the Department of Public Works (DPW) and the Department of Rural Development and Land Reform (DRDLR). This eliminates duplications & saves costs 66km road P64/2 between Kestel and Reitz (P64/2) in Free State was successfully rehabilitated at a value of R147 Million. 30% of the project value was set aside for local SMME’s, cooperatives and emerging contractors to create work opportunities for youth, disabled and women beneficiaries. Repair of flood-damaged road infrastructure in Lephalale was done on Roads D171, D1836 and D1959. These roads provide access to basic economic and social amenities to the rural community in Lephalale. The Thaba Nchu Public Transport Route S110 was successfully upgraded. The re-sealing and road markings for Phase 1, as part of the road rehabilitation programme were concluded in September 2015.

Provincial Focus… Improved Public Transport Systems The Department continued to support the rollout of Integrated Rapid Transport Systems (IRPTN’s) in 13 municipalities to the tune of R5,9bn during the year under review. R4,9bn was spent across the the provinces through the Public Transport Operations Grant (PTOG) A total of 3 226 old taxi vehicles were scrapped during the period under review due to the increase in demand by operators

Provincial Focus… Schools Reached to promote aviation as a career choice amongst learners (576 schools visited in 2015/16) Northern Cape Province: ZF Magcawu & John Taolo Gaetsewe Districts Career Exhibition: Schools – 33; Learners – 2 841 North West Province: TETA Career Awareness Expo: Schools – 61; Learners – 503 Gauteng Province TUT Ga-Rankuwa Open Week Exhibition: Schools – 73; Learners – 6 637 Mango Career Day & Swartkops Airshow: Schools – 11; Learners – 700 Soweto Schools Visit: Schools – 05; Learners – 191

Provincial Focus… Schools Reached to promote aviation as a career choice amongst learners (576 schools visited in 2015/16) Northern Cape Province: NCP Department of Education Grade 12 Learners Programme: Schools – 10, Learners – 700. Limpopo Province: Phalaborwa Schools Visit & Eskom Expo for Young Scientists: Schools – 15, Learners – 300 Mpumalanga Province: Sasol Techno X 2015 – Secunda: Schools – 104, Learners – 994

Provincial Focus… Schools Reached to promote aviation as a career choice amongst learners (576 schools visited in 2015/16) Northern Cape Province: Handing over ceremony of the computer laboratory to the Colesberg Combined School & Career Awareness: Schools – 10: Learners – 573 KwaZulu Natal Province Dundee Aviation Career Expo & Air-Show: Schools – 21: Learners – 750 North West Province Aviation Career Awareness & ICAD 2015: Schools – 3; Learners –1 362

Provincial Focus… Schools Reached to promote aviation as a career choice amongst learners (576 schools visited in 2015/16) Free State: Thirteen (13) schools visited and Reached 988 learners; North West: Seventy (70) schools visited and Reached 6 777 learners; Western Cape: Three (03) schools visited and Reached 136 learners

Notable Challenges to be Prioritised for Remedial Action Programme 1: Administration Only 63 vacant posts (against a targeted 115) were filled during the period under review. The underperformance was due to budget cut on compensation of employees and a moratorium placed by the National Treasury on the filling of vacant posts Corrective measures: DoT will continue to engage the National Treasury to ensure that a solution is reached to enable the Department to fill critical vacant positions

Notable Challenges to be Prioritised for Remedial Action Programme 2: Integrated Transport Planning NATMAP 2050 was not re-submitted to Cabinet due to non-conclusion of the Presidential Infrastructure Coordinating Committee (PICC) consultation process Corrective Measure: Consultations with the PICC secretariat have commenced and the NATMAP will be prioritised at the next PICC Management Committee (MANCO) engagement. The development of the Harrismith Hub Framework was not completed. Corrective Measure: Option Analyis and Value Assessment reports were completed in collaboration with the Free State Department of Roads, Police and Transport. These reports will be tabled as the basis of the overarching Harrismith Hub Framework.

Notable Challenges to be Prioritised for Remedial Action Programme 6: Maritime Transport The Green Paper on the National Maritime Transport Policy was presented to the International Cooperation, Trade and Security (ICTS) Cluster in March 2016. Submission of the Green Paper to Cabinet was not approved by the DoT Executive Authority. Corrective Measure: DoT will prioritise the Green Paper in the new financial to ensure all outstanding issues are addressed to enable submission to Cabinet. The Cabotage Policy has been completed and included as a chapter in the Green Paper on the National Maritime Transport Policy that was presented to ICTS Cluster in March 2016. However, as with the Green Paper on the National Maritime Transport Policy, submission to Cabinet was not approved by the DoT Executive Authority. Corrective Measure: The process to develop the National Maritime Transport Policy process has been re-arranged to consider the Cabotage Policy.

Human Resource Management Vacancy Rate 53 positions filled during 2015/16 (target for the financial year was to fill 80 positions); Vacancy rate decreased from 22,16% to 19.61% Under-performance due to budgetary constraints

Human Resource Development Initiatives 68 interns were recruited and placed across Departmental branches 9 junior employees completed Project Management Learnership at NQF Level 4 152 bursaries managed during the period under review 454 employees trained across 1 052 training interventions

Employment Equity Statistics Race African – 92% (target – 79.5%) Coloured – 1.29% (target – 9%) Indian – 1.88% (target – 2.5%) White – 4.76% (target – 9%) Gender Male – 304 (44%) target = 54.20% Female – 389 (56%) target = 45.80%

Employment Equity Statistics… SMS Male – 68 (61%) Female – 44 (39%) (Target = 50% female representation in SMS) Disability Male – 3 Female – 10 DoT Disability Status – 1.88% (Target = 2%)

FINANCIAL STATEMENTS

Report of the Auditor-General Audit Report Actions taken Actions to be taken Basis for qualified opinion: The Auditor-General was unable to obtain sufficient appropriate audit evidence whether movable tangible capital assets and intangible capital assets were properly accounted for: Complete and accurate asset registers could not be provided.. The Auditor-General did not get access to certain premises where the assets were located. The above was due to the ensuing litigation against the Department, which was explained in more detail in the Report of the Accounting Officer. The eNaTIS tangible and intangible assets were disclosed as assets under investigation. The Department is in the process of obtaining a court order to compel the Department and the eNaTIS service provider to obtain and provide information on assets. After the final court judgment: The Department will conduct a due diligence on the eNaTIS assets for purposes of taking over and for the possible transfer to the RTMC should this still be the preferred option as resolved by the RTMC’s Shareholder’s Committee.

Report of the Auditor-General (continued) Audit Report Actions taken Actions to be taken Predetermined objectives: No material findings were identified on the usefulness and reliability of performance information for three selected Programmes. N/a Annual Financial Statements: Material misstatements in accruals and capital assets were identified. Misstatements in accruals were corrected. Obtain complete asset registers for the eNaTIS assets. Asset management: Proper control systems to safeguard and maintain assets were not implemented. The eNaTIS assets were disclosed as assets under investigation Expenditure management: Effective steps were not taken to prevent irregular and fruitless and wasteful expenditure. Cases investigated where applicable. Disciplinary steps taken and underway. Finalise disciplinary steps. Recover / condone or write off.

Report of the Accounting Officer Overview of financial results – Departmental revenue: Departmental receipts 2015/2016 2014/2015 Estimate Actual Over/ (Under) Amount Collection Collected   R’000 Tax Receipts - Motor vehicle licenses 260,000 - (260,000) Sale of goods and services other than capital assets 619 556 (63) 546 611 65 Fines, penalties and forfeits 70 (70) Interest, dividends and rent on land 150 205,644 205,494 230,734 230,584 Financial transactions in assets and liabilities 80,000 3,735 (76,265) 8,000 90,762 82,762 Total 80,839 209,935 129,096 268,766 322,107 53,341 The department did not expect to receive dividends of R205.6 million, and expected revenue from unspent conditional grants of R80 million for the year.

(Over) / Under expenditure Report of the Accounting Officer (continued) Overview of financial results – Programme expenditure: Programme 2015/16 2014/15   Final Appropria-tion Actual expendi-ture (Over) / Under expenditure R'000 Administration 422,169 420,824 1,345 390,889 377,489 13,400 Integrated Transport Planning 88,764 88,762 2 74,974 - Rail Transport 18,310,610 18,305,274 5,336 15,035,507 Road Transport 23,164,889 22,889,198 275,691 21,810,020 22,202,862 (392,842) Civil Aviation 150,383 145,284 5,099 160,966 Maritime Transport 143,674 142,674 800 101,742 99,623 2,119 Public Transport 11,334,588 11,328,571 6,017 11,196,571 11,195,677 894 Total 53,615,077 53,320,787 294,290 48,770,669 49,147,098 (376,429)

Report of the Accounting Officer (continued) Overview of financial results – Programme expenditure (cont.): Administration under spent R1.34 million after funds were shifted across programmes to cover expenditure on transport provided for State funerals. An amount of R1.3 million was under spent on the Road Accident Benefit scheme, which was requested as a rollover. Integrated Transport Planning spent its budget for the year and there were no material variances in expenditure. Rail Transport under spent on a number of projects: White Paper on Rail Transport, Establishment of a Rail Economic Regulator, National Rail Safety Amendment Bill, National Rail Safety Strategy, Branchline Strategy Review and Moloto Development Corridor.

Report of the Accounting Officer (continued) Overview of financial results – Programme expenditure (cont.): Road Transport over spent on the Electronic National Traffic Information System ( eNaTIS) by R121.4 million; over spent on operational expenditure mainly due to traveling and over spent on the S'Hamba Sonke project. Funds were shifted across programmes to cover the over expenditure. After funds were shifted, the programme under spent by R275,691,000, which was withheld from the Provincial Road Maintenance Grant for Kwa-Zulu Natal, and was requested as a rollover. Civil Aviation under spent on a number of projects and over spent on operational expenditure mainly due to traveling. The project "Watchkeeping Services" was under spent by R7.8 million, and R4.1 million was paid for the management of the Mthatha Airport project, which was covered by under expenditure on other projects.

Report of the Accounting Officer (continued) Overview of financial results – Programme expenditure (cont.): Maritime Transport over spent its budget mainly due to R36.6 million paid to the International Oil Pollution Fund, and under spent on a number of projects, mainly the Feasibility Study on Tug Boat Services (R6.8 million). The shortfall was covered by shifting funds across programmes. Public Transport under spent on a number of projects, mainly the Review of the Taxi Recapitalisation Model (R55 million) and the Implementation of Integrated Public Transport Network Plans in District Municipalities (R28.8 million). The programme also under spent R82.6 million on the scrapping of taxis. A total of R184.3 million was shifted to other programmes to cover over expenditure on State funerals, eNaTIS and the International Oil Pollution Fund.

Com-pensation of em-ployees Machinery & Equip-ment Report of the Accounting Officer (continued) Overview of financial results – Virements: Programme Com-pensation of em-ployees Goods and services Machinery & Equip-ment Foreign Govern-ments House-holds Total Administration - 32,800 5,511   401 38,712 Integrated Transport Planning 573 54 681 Rail Transport (754) Road Transport 122,192 Civil Aviation 857 Maritime Transport (1,384) (12,667) 36,636 22,585 Public Transport 389 (102,640) (82,022) (184,273) (319) 39,685 5,565 (81,567)

Report of the Accounting Officer (continued) Overview of financial results – Virements (continued): Compensation of employees: Programmes experienced relatively low over and under expenditure on compensation of employees, which was shifted across programmes to compensate for the shortfalls. Goods and services was over spent in Administration due to the cost of State funerals, and in Road Transport due to the cost of eNaTIS, both of which were not budgeted for. Funds were shifted from Maritime Transport and Public Transport to cover the shortfalls. Machinery and equipment was over spent because leases for photocopy machines are classified as capital expenditure while the expenditure was budgeted as goods and services, mainly in Administration. The over expenditure was covered by shifting funds within and across programmes.

Report of the Accounting Officer (continued) Overview of financial results – Virements (continued): Foreign governments was over spent due to R36.6 million paid to the International Oil Pollution Fund, which was not budgeted for. Funds were shifted across programmes to cover the cost. Households was under spent because less taxis were scrapped than budgeted for and funds were shifted to other programmes to cover costs.

Report of the Accounting Officer (continued) Overview of financial results – Rollovers requested: Programme R'000 Programme 1: Administration:   Road Accident Benefit Scheme 1,300 Programme 4: Road Transport: Provincial Road Maintenance Grant withheld from Kwa-Zulu Natal Province 275,691 Total 276,991 The rollover of R275.7 million for the Provincial Road Maintenance Grant withheld from Kwa-Zulu Natal Province was approved on the Adjusted Budget for 2016/17.

Report of the Accounting Officer (continued) Unauthorised, Fruitless and Wasteful and Irregular Expenditure: Unauthorised expenditure: Unauthorised expenditure amounted to R2,368,571,000 at 31 March 2016: Unauthorised expenditure incurred during 2008/09 and 2009/10 as a result of over expenditure on bus subsidies R1,207,374,000. The Standing Committee on Public Accounts recommended the approval of the amount as a direct charge against the National Revenue Fund. Over spending of Road Transport in 2013/14 and 2014/15 because eNaTIS is unfunded R1,161,197,000. No further unauthorised expenditure was incurred in 2015/16 because the over expenditure on eNaTIS could be covered by the shifting of funds across programmes and because the Road Traffic Management Corporation (RTMC) carried the cost of eNaTIS from May 2015 onwards.

Report of the Accounting Officer (continued) Unauthorised, Fruitless and Wasteful and Irregular Expenditure (continued): Fruitless and wasteful expenditure: Fruitless and wasteful expenditure that was declared and not yet transferred to receivables, amounting to a total of R1.436 million is made up as follows: Services paid for but not delivered for which litigation is underway R546,945. An overseas trip that was undertaken that exceeded the authorization by R639,725, which is under investigation. Other fruitless and wasteful expenditure under investigation R61,253. To be written off R87,708. To be recovered R100,230.

Report of the Accounting Officer (continued) Unauthorised, Fruitless and Wasteful and Irregular Expenditure (continued): Irregular expenditure: A total of R123,044,000 was declared as irregular expenditure in 2015/16: Relating to prior years: Contract extended for a period of five years without following procurement procedures R121,429,000. The case was investigated and is still under investigation by the Special Investigating Unit. Relating to prior years: Advertisement placed without following procedures R55.803. The responsible employee is no longer in the employ of the Department and the responsible component was requested to make representations to the Bid Adjudication Committee.. Relating to the current year: Five cases were declared as irregular totalling R1,559,231 because the scope of two contracts and the period of three contracts were extended without approval. Disciplinary steps were taken in two cases and were requested for three cases.

Report of the Accounting Officer (continued) Other (Continued): The Office of the Auditor-General indicated via an audit finding that the department should disclose eNaTIS assets in its financial statements in accordance with the provisions of the Modified Cash Standard. Numerous court orders interdicts the department from interfering with the business of the eNaTIS service provider A dispute was raised with the Office of the Accountant-General regarding the disclosure of the assets in the financial statements. The Accountant-General indicated that a departure on the disclosure on eNaTIS assets would impact on the fair presentation criteria for the tangible and intangible assets disclosure notes, and the department disclosed the assets in the financial statements. Because the department could not obtain detailed lists of all the assets, the eNaTIS assets have been disclosed as assets under investigation in the financial statements.

Statement of Financial Performance 2015/16 2014/15 Note R'000 REVENUE Annual appropriation 1 53,615,077 48,770,669 Departmental revenue 2 209,935 322,107 TOTAL REVENUE 53,825,012 49,092,776 EXPENDITURE Current expenditure Compensation of employees 3 382,866 345,900 Goods and services 4 701,351 1,059,155 Total current expenditure 1,084,217 1,405,055 Transfers and subsidies 6 52,219,379 47,706,799 Expenditure for capital assets Tangible assets 7 10,512 34,984 Intangible assets 3,354 - Total expenditure for capital assets 13,866 Payments for financial assets 5 3,325 260 TOTAL EXPENDITURE 53,320,787 49,147,098 SURPLUS/(DEFICIT) FOR THE YEAR 504,225 (54,322) Reconciliation of Net Surplus/(Deficit) for the year Voted Funds – Annual Appropriation 294,290 (376,429) Departmental revenue and NRF Receipts 14

Expenditure Breakdown for 2015/16 Transfer Payments 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 PRASA 18,222,047 SANRAL 12,843,488 Provincial Roads Maintenance Grant 9,531,744 Public Transport Network Grant 5,953,090 Public Transport Operations Grant 4,939,448 Other transfers (next slide) 729,562

Expenditure Breakdown for 2015/16 (continued) Transfer Payments (continued) 50,000 100,000 150,000 200,000 250,000 Other Transfers Taxi recapitalisation 248,402 Rural Road Asset Management Grant 96,842 Foreign organisations 46,824 Non Profit Institutions 21,669 Bursaries and Households 10,908 Total of Transfer Payments (97.9% of expenditure) 52,219,379

Expenditure Breakdown for 2015/16 (continued) Other expenditure 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Goods and Services 701,351 Compensation of Employees 382,866 Machinery & Equipment 13,866 Payments for Financial Assets 3,325

Statement of Financial Position 2015/16 2014/15 Note R'000 ASSETS Current Assets 2,446,028 2,446,667 Unauthorised expenditure 8 2,368,571 Cash and cash equivalents 9 31 2,833 Prepayments and advances 10 46,286 42,359 Receivables 11 31,140 32,904 Non-Current Assets 6,089,441 Investments 12 TOTAL ASSETS 8,535,469 8,536,108 LIABILITIES Current Liabilities 2,445,488 2,446,205 Voted funds to be surrendered to the Revenue Fund 13 294,290 16,413 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 136 128 Bank overdraft 15 2,148,564 2,427,064 Payables 16 2,498 2,600 Non-Current Liabilities 17 49 29 TOTAL LIABILITIES 2,445,537 2,446,234 NET ASSETS 6,089,932 6,089,874 Represented by: Capitalisation reserve Recoverable revenue 491 433 TOTAL

Statement of Financial Position (continued) No further unauthorised expenditure was incurred. Prepayments and advances include R38.3 million paid in advance for the scrapping of taxis. Receivables include R22.2 million owing by the South African Maritime Safety Authority and R6.8 million owing by the Road Traffic Management Corporation. The bank overdraft decreased by R278.5 million due to under expenditure against the budget, mainly the amount of R275.7 million that was withheld from the Provincial road Maintenance Grant for Kwa-Zulu Natal.

Thank you