DIRECTOR-GENERAL: MKUSELI APLENI BRIEFING OF THE STANDING COMMITTEE ON APPROPRIATIONS ON THE 2017 ADJUSTMENTS APPROPRIATION BILL DIRECTOR-GENERAL: MKUSELI APLENI PRESENTED BY: 22 NOVEMBER 2017

BACKGROUND   During the 2009/10 financial year, the incoming administration inherited a bankrupt Department in that the Department was being litigated by service providers who had not been paid for services already rendered. In this regard, the following interventions were implemented: Department approached National Treasury outlining the challenges it faced and sought funding to settle all valid debts. National Treasury agreed and supported the Department to over-spent its budget resulting in unauthorised expenditure of R1 billion, which was approved through an Appropriation Bill during the 2016/17 financial year.

BACKGROUND (Continued)   Due to fiscal pressures, additional funding requests were not granted. However, an alternative funding model in a form of Self Financing was approved and implemented during the 2013/14 financial year; Self financing works on the basis that revenue collected by DHA is allocated back to the DHA during the Adjustment Estimate of National Expenditure (AENE). Furthermore, DHA had challenges to implement its modernisation project (Who Am I Online (WAIO)), which resulted in a re-negotiated contract. The following commitments were agreed to: Original WAIO scope will be implemented as planned; The project will be funded through earmarked funds.

ORIGINAL WAIO SCOPE INTEGRATION ID Smart Card & HANIS & EDMS NIIS New NPR Live Capture ID’s & Passports Births & Deaths Permits & Visas Citizenship Adoption Marriages Movement Control System Frequent Traveller System ID Smart Card & EDMS Original WAIO Scope Excluded from WAIO Scope HANIS & NIIS R ,283 Billion New Tender Budget req. Existing System INTEGRATION Excluded from WAIO Scope - Existing DHA Systems

DHA Revised Modernisation Road Map April 2013 April 2014 April 2015 April 2016 April 2017 April 2018 April 2019 ID’s - 1st Issue + Re-issue Passports – Tourist, Minor, Maxi, Crew, Official, Doc for Travel Purposes Supp Doc Imaging & BQMS Rollout Live capture to 140 Offices Phase 1 Ph EMCS Enhancements and Rollout to all Land and Air Ports of Entry eVisa – Adjudication System Design and specified the HANIS for National Identification System eHome Affairs Portal for Live Capture System Further Rollout Live Capture in various models and footprint Phase 2 Phase 3 Automate civic services business processes Phase 1: Births; Amendments Pilot eHA and Live Capture system at Banks Contact Centre system development Automate Civic services processes, Phase 2: registration of Marriages, Divorces, Deaths, and Citizenship End to end eVisa system Inspectorate Case Management Biometrics eMCS development and Rollout Permit system – Asylum Seeker Management Trusted Traveller NPR – New NIS Phase 4

WAIO BUDGET ALLOCATIONS AND EXPENDITURE Modernization Budget Allocation : As at 16 November 2017 DESCRIPTION ALLOCATION EXPENDITURE BAS COMMITMENT ORDERS NOT YET RAISED MAINTENANCE AND SUPPORT 205 000 000 113 427 608 64 319 056 27 253 336 LICENCES 75 060 871 52 796 467 22 264 404 - TECHNOLOGY REFRESH 107 326 097 43 308 700  - 64 017 397 PROJECTS/ SYSTEMS DEVELOPMENT & SERVICES 131 528 032 34 877 158 41 960 195 54 690 679 TOTAL 518 915 000 244 409 933 128 543 655 145 961 412

WAIO Budget Allocations and Expenditure Orders to be Raised - Commitments of the Available Budget DESCRIPTION AMOUNT Progress Update Routers and switches Maintenance contract 8 000 000 Final process of Procurement. Required for upgrade of Network Routers and Switches in offices. Live Capture, eHome Affairs and DRS Hosting 24 520 648 Final process of procurement. Urgent to migrate all systems from SARS to DHA. Smart ID Card Applets Contractual Obligation. Order in process of being issued. Intrusion prevention system 14 000 000 Final Process of Procurement. Required to monitor the DHA Network. Servers Upgrade (SAN and ACP at Centurion) 30 000 000 Final procurement process. Required for ePermit and Visa system to go live in March as per DHA APP. Mobile Units 22 000 000 For systems development, procurement of Mobile Units, configuration and Pilot. National Identity System 39 440 763 SITA has already appointed CSIR for system requirements, design and specifications. TOTAL 145 961 411

OUTSTANDING WAIO PROJECTS New NPR – National Identity System (Back-end System) Permit – Asylum Seeker Management System (end to end) Trusted Traveller Programme Original WAIO Scope New NPR Live Capture ID’s & Passports Births & Deaths Permits & Visas Citizenship Adoption Marriages Movement Control System Frequent /Trusted Traveller Additional due to Modernisation Scope Smart ID Card EDMS Contact Centre Case Management system Infrastructure/ Network Upgrade

DEPARTMENTAL BUDGET VS EXPENDITURE Note: The R12 million unspent at the end of 2016/17 was allocated during the 2016 AENE process for implementation of video conferencing and VoIP, of which roll-over was approved in the 2017/18 financial year. DEPARTMENTAL BUDGET EXPENDITURE AVAILABLE % SPENT    R’000 2013/14 6 994 617 6 992 551 2 066 100% 2014/15 7 223 957 7 223 328 629 2015/16 7 348 725 7 343 378 5 347 2016/17 8 155 806 8 143 524 12 282* 99,8%

WAIO BUDGET VS EXPENDITURE FINANCIAL YEAR BUDGET R’000 EXPENDITURE AVAILABLE % SPENT 2013/14 348 993 345 224 3 769 99% 2014/15 325 000 324 716 284 100% 2015/16 125 000 124 991 9 2016/17 448 925 448 923 2

HISTORIC PERFORMANCE OVERVIEW Annual performance plan Audit outcomes  

BUDGET VERSUS EXPENDITURE AS AT 30 SEPTEMBER 2017 PER PROGRAMME CURRENT BUDGET COMMITMENT EXPENDITURE AVAILABLE % SPENT R'000 R‘000 % ADMINISTRATION 2,109,847 255,939 981,875 1,127,972 46.5% CITIZEN AFFAIRS 1,821,809 55,942 1,471,765 350,044 80.8% IMMIGRATION AFFAIRS 1,226,576 73,062 531,490 695,086 43.3% PROVINCES 1,897,307   923,000 1,130,249 48.6% TOTAL 7,055,539 384,943 3,908,130 3,303,351 55.4% EARMARKED FUNDS ELECTORAL COMMISSION 1,299,912 - 699,570 716,937 53.8% REPRESENTED POLITICAL PARTIES FUND 141,204 70,602 50.0% 1,441,116 770,172 787,539 53.4% WHO AM I ON LINE (WAIO) 518,915 116,214 198,123 320,792 38.2% DHA VOTE ONLY 5,095,508 268,729 2,939,835 2,195,020 57.7% SELF FINANCING COUNT CORRUP SELF FINANCING 16,500 3,013 13,487 18.3% PROPERTY SELF FINANCING 108,900 26,129 82,771 24.0% CIVICs (PASSPORTS & ID’S) 945,400 1,172 520, 248 358,229 59.1% GRAND TOTAL 1,070,800 549,390 520,238 51.3%

HANIS / ABIS HANIS is a biometric system that stores fingerprints and photos and enables identification and verification of citizens and non citizens. The system has reached end of life and end of support since 2014; DHA has since redesigned an automated biometric information system (ABIS) that will enable other forms of biometrics; i.e. Facial recognition, palm and IRIS technologies. Funding was secured from SAPS (264mil) in the current FY, and IJS (85mil) for FY 2018/19. Service Provider to upgrade the system has been appointed.

2017 AENE

IMPLICATIONS FOR R100 M REDUCTION Overspending of the budget as there are already contractual obligations with service providers Non-delivery of the WAIO project and loss of gains already achieved in collaboration with other stakeholders (SARS, SAPS, banks, etc.) Defeats the efforts of the DHA to improve business processes for efficient and effective service delivery as well as turnaround times Hampering the elimination of fraudulent and corrupt activities by continuous utilization of paper processes Continued increased costs of operations as modernisation brings down cost

ANNEXURES Preliminary allocation letter 30 October 2017.pdf R100 million.declared unspent funds.with annexures.DG let.31 Oct 2017.pdf R100m.response NT.G Wilson.3 Nov 2017.pdf R100m.DG DHA reply.9 Nov 2017.pdf

Ndiyabulela Ngiyabonga Dankie Ndo livhuwa Thank you Ke a leboha Ke ya leboga Inkomu