PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS 7 NOVEMBER 2012 PRESENTED BY DEPARTMENT OF COMMUNICATIONS Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

OVERVIEW Introduction Non completion of 112 emergency Call Centres Shift of funds Virements Expenditure Transfers to SOE’s and subsidies Conclusion Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

DELEGATION Ms. Rosey Sekese : Director General Dr. Sam Vilakazi : DDG- Administration Mr. Rebolang Soldaat : Director: Finance Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Introduction The Department has been allocated a budget of R1, 712 billion for the 2012/13 financial year. During the adjustment estimates, the Department made submission to National Treasury to fund AFCON as well as other projects within the department. No funds were made available from Treasury. 112 Emergency Call Centre and Broadband allocations were reprioritised to fund AFCON, DTT awareness, establishment of Set-Top-Boxes testing facilities and some of the projects in the Department. National Treasury further requested the Department to surrender R58 million from 112 Emergency Call Centre as part of savings. An additional R1,6 million was allocated through the adjusted budget for salary adjustments. The adjusted budget amounts to R1,655 billion.   The expenditure as at 30 September 2012 amounts to R 763,628 million, which represents 46% of the allocation. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Non Completion of the 112 Emergency Call Centres The Department has been allocated R123,4 million for 112 Emergency Call Centre (112 ECC) in the current financial year. The 112 Emergency Call centre was put out on an open tender as a Public Private Partnership. The Tender is currently being evaluated. The Delays were caused by the fact with PPP projects, Transaction Advisors have to be appointed. In this regard Deloitte is assisting with this project. A service provider will be appointed from 1st December 2012. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Shifting of funds An amount of R20 million was shifted from 112 Emergency Call Centre to cover the establishment of the Set Top Box Testing facility as the South African bureau of Standards (SABS) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

The Virements The Department requested approval to Virement R100 million from Broadband and R44,413 million from the 112 Emergency Call Centre allocations as follows: R65 million to SABC and R16 million ICASA for Afcon Funding; R10 million for advisory Transaction advisor for Telkom transaction R6 million to ISAD Cluster ICT Colloquium; R3 million ICT Trade/Partnerships; R 44,413 million for DTT awareness campaign. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Expenditure as at 30 September 2012 PROGRAMME Adjusted Appropriation Actual Expenditure as at 30/09/2012 Percentage spent Administration 197 009 95 769 63% ICT International Affairs and Trade 41 046 19 944 52% ICT Policy Development 90 292 42 328 48% ICT Enterprise Development 1 213 855 543 369 ICT Infrastructure Development 76 870 43 537 16% Presidential National Commission 35 952 18 681 62% Total 1 655 024 763 628 46,1% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2012/13 Expenditure cont. Programme Adjusted Appropriation QTR 1 QTR 2 Total to 30 September 2012 1 ADMINISTRATION 197 009 49 951 45 818 95 769 2 ICT INTERNATIONAL AFFAIRS AND TRADE 41 046 7 949 11 995 19 944 3 ICT POLICY DEVELOPMENT 90 292 20 850 21 478 42 328 4 ICT ENTERPRISE DEVELOPMENT 1 213 855 248 835 294 534 543 369 5 ICT INFRASTRUCTURE DEVELOPMENT 76 870 10 282 33 255 43 537 6 PRESIDENTIAL NATIONAL COMMISSION 35 952 10 634 8 047 18 681 1 655 024 348 501 415 127 763 628 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Expenditure as at 30 September 2012   2012/13 Economic Classification Adjusted Appropriation Actual Expenditure as at 30/09/2012 Percentage spent Current payments 437 197 235 214 54% Transfers and subsidies 1 212 936 526 601 43% Payment of capital assets 4 891 1 756 36% Payment of financial assets -  56 TOTAL 1 655 024 763 628 46.1% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Budget vs. Expenditure Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Transfers to SOEs and Subsidies . Transfers and Subsidies to SOEs Adjusted Appropriation Actual transfer as at 30/09/2012 Percentage transferred in QTR 2 Available Budget USAASA 59 801 30 847 52% 28 954 USAASA – SET TOP BOXES 230 000 -   USAF 43 977 4 486 10% 39 491 ICASA 405 797 184 471 47% 221 326 SAPO: Subsidy 51 965 41 964 81% 10 001 SABC: Public Broadcaster 172 533 43 373 25% 129 160 SABC: Channel Africa 43 292 32 191 74% 11 101 Sentech: Digitisation 165 834 100% Nemisa 34 116 22 744 67% 11 372 .ZA Domain Name Authority 1 500 0% Nepad 3 885 Skills development levy 236 Total 1 212 936 525 910 43 687 026 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Transfers to SOEs (millions) and Subsidies Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Conclusion Given the pressure on the fiscus, the Department opted to prioritize key and critical projects by identifying funds from within. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development