Annual Report Briefing to the Portfolio Committee on Transport 10 October 2013 by Sipho G. Khumalo

Presentation Outline Mandate Strategic Tasks Audit Outcomes Review of Organisational Performance Financial Information Employment Equity Community Development Programmes Strategic Imperatives and Challenges Conclusion

Mandate The Cross-Border Road Transport Agency’s (C-BRTA) legislative mandate is to improve the flow of passengers and freight by road transport in the region, introduce regulated competition in cross-border road transport, reduce operational constraints for the cross-border road transport, trade facilitation, provide oversight and monitoring functions, and to build industry partnership to strategically reposition the work of the C-BRTA

Strategic Imperatives To improve the unimpeded flow of passenger and freight movements across regional borders To liberalise market access in respect to freight transport To introduce regulated competition in respect to passenger transport To reduce operational constraints for the cross-border road transport industry To enhance and strengthen the capacity of public sector To empower the cross-border road transport industry

Reflecting on the 10 Point Plan Item Intervention Progress 1 Recruiting suitably qualified personnel 2 Consensus on organisational mandate 3 Improve image of Agency by obtaining a clean audit 4 Resolving governance lapses at Board level 5 Developing a sound funding model 6 An organisational structure consistent with the mandate 7 Developing leadership cohesion at all levels 8 Organisational culture and values 9 Inculcating a performance driven culture 10 Developing strategic partnerships with stakeholders

Audit Outcomes The Agency attained its first unqualified audit opinion since establishment 15 years ago. 2012/13 2010/11 2011/12 UNQUALIFIED AUDIT QUALIFIED AUDIT QUALIFIED AUDIT

Audit Outcomes - 2013 Outcomes Annual financial statements unqualified – with no material misstatements Emphasis of Matter: Funding of Operations – Litigation on the increase in permits tariff Predetermined objectives unqualified - No material findings on the reliability and usefulness of the performance information Additional Matter: 32 of the 62 performance indicators not 100% achieved Reduction of Irregular expenditure from R14 million in the previous financial year to R920K in 2012/13 – mainly due to contracts entered into in the previous years

Review of Organisational Performance Performance targets Number of indicators % Obtained Performance targets fully achieved (100%) 30 48% Performance targets partially achieved (60% - 99.9%) 8 13% Performance targets not achieved (30% - 59.9%) 9 15% Performance targets not achieved (above 0% up to 29.9%) 4 6% Performance targets not achieved (0%) 11 18% TOTAL 62 100%

Review of Organisational Performance - Law Enforcement Work Activity 2011/12 2012/13 Difference % Movement Year-on-year movement Vehicle Inspections 124 624 132 372 7 748 6.2% Prosecutions 11 549 15 384 3 835 33.2% Compliance Rate 90.55% 88.79% (1.76%) (1.90%)

Review of Organisational Performance - Permits Issued Work activity 2011/12 2012/13 % Movement Year-on-year movement Total Permits issued 71 100 75 000 5.49% PERMITS ISSUED PER CATEGORY Passenger transport - Taxi 11 950 10 539 (11.81%) Passenger Transport - Buses 2 367 3 144 32.83% Freight transport 54 827 55 053 0.41% Tourist transport 1 956 1 682 (14.01%)

Permits Issued for Passenger Transport (Taxi) Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13 Country 2011/12 2012/13 % Movement Year-On-Year Movement Botswana 405 339 (16.30%) Lesotho 2,762 2,968 7.46% Malawi 2 0.00% Mozambique 5,177 4,332 (16.32%) Namibia 98 79 (19.39%) Swaziland 681 453 (33.48%) Zambia 8 40 400.00% Zimbabwe 2,729 2,312 (15.28%) Carbotage 88 14 (84.09%) Total 11,950 10,539 (11.81%)

Permits Issued for Passenger Transport (Buses) Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13 Country 2011/12 2012/13 % Movement Year-On-Year Movement Botswana 36 100 177.78% DRC 23 0.00% Lesotho 468 595 27.14% Malawi 207 127 (38.65%) Mozambique 339 631 86.14% Namibia 113 110 (2.65%) Swaziland 17 182 970.59% Zambia 115 77 (33.04%) Zimbabwe 989 1,299 31.34% Total 2,307 3,144 36.28%

Permits Issued for Freight Transport Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13 Country 2011/12 2012/13 % Movement Year-On-Year Movement Botswana 8,785 7,769 (11.57%) DRC 4,275 4,950 15.79% Lesotho 4,423 4,315 (2.44%) Malawi 1,130 1,322 16.99% Mozambique 7,351 8,463 15.13% Namibia 5,680 5,800 2.11% Swaziland 5,899 5,357 (9.19%) Zambia 8,154 8,574 5.15% Zimbabwe 8,426 8,432 0.07% Carbotage 704 71 (89.91%) Total 54,827 55,053 0.41%

Permits Issued for Tourist Transport 2011/2012 2012/2013 % Movement Year-On-Year Movement Regional 1,956 1,682 (14.01%)

Financial Performance 2012/13 2011/2012 REVENUE Permit Income R165,93m R164,89m Penalty Income R20m R15,07m Other Income R2,14m R 3,15m Interest Received R4,92m R 2,45m EXPENSES Employee Costs R101m R70,75m Operating Expenses R57,58m R44,49m SURPLUS R34,50m R71,05m

Financial Position 2012/13 ASSETS LIABILITIES 2012/13 2011/2012 R3,81m CURRENT ASSETS Receivables R3,81m R2,69m Cash and Cash Equivalents R125,46m R84,65m NON-CURRENT ASSETS Property, Plant and Equipment R8,27m R7,57m Intangible Assets R1,15m R1,07m TOTAL ASSETS R138,68m R96m 2012/13 2011/2012 CURRENT LIABILITIES Lease obligations R0,68m R0,76m Payables R18,20m R12,57m Provision R9,06m R6,19m NON-CURRENT LIABILITIES Retirement benefit obligation R1,65m R1,88m TOTAL LIABILITIES R29,59m R21,40m ACCUMULATED SURPLUS R109,10m R74,60m

Employment Equity RACE GENDER

Community Development Programmes Recruited 21 Trainee Inspectors for a 12 months Training in 2013 Intake of 10 Internship Students in 2013 Development of a Women-In-Transport programme aimed at introducing women operators to cross-border road transport On-Going SMME Development Programmes For Aspiring Cross-Border Operators Donated Furniture to Rakgotso High School in Mamelodi

Strategic Imperatives Activation of the mandate to enable seamless and efficient passenger and freight logistics in South Africa, Regionally and Globally – positioning of our borders as trade facilitation points! Need to resolve ‘misunderstandings’ pertaining to the mandate and role of the C-BRTA Strengthening Partnerships with SARS and other Border Authorities Appreciating the changing dynamics in border towns and the need to respond to provincial imperatives

Key Challenges & Intervention Areas Addressing the question of unroadworthy cross-border vehicles and the review of SADC vehicle standards Need for protection S.A. domestic operators in regard to conditions obtaining in our neighbouring countries – need for review of Bilateral Agreements & implementation of the SADC Protocol Provision for dealing with overloaded cross-border vehicles (below 3.5 tons) and use of bus trailers for the transportation of goods Resolution of the Lesotho/Free State Cross Border passenger transport issue On-going litigation on the increase of permit tariffs

Concluding Remarks The C-BRTA is geared to demonstrate its commitment to adding public value through its strategic interventions. This Agency is also poised to support the National Programme of Action of government of industrialization and job creation. The Agency has broken the cycle of audit qualifications and attained an unqualified audit opinion Going forward, the C-BRTA is gearing itself to expand its service offerings to our provincial offices, thus taking our services to the people.

i thank you