PRESENTATION TO THE PORTFOLIO COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES SECOND QUARTER PERFORMANCE 2016/17 FINANCIAL YEAR 21 FEBRUARY 2017

INTRODUCTION The Department conducts monthly monitoring and reporting against the Operational Plans as well as quarterly monitoring, evaluation and reporting against the quarterly targets as committed to in the 2016/17 Annual Performance Plan. Presentation on the Department’s Performance for the period 01 July to 30 September 2016 focuses on: Significant Achievements Quarter 2 performance against each 2016/17 Targets as identified in the 2016/17 Annual Performance Plan; Status of progress per quarter 2 target (Achieved/Not Achieved) Reasons for no-achievement Financial performance as at 30 September 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

SIGNIFICANT ACHIEVEMENTS (1) Following the approval of the National Integrated ICT Policy White Paper, the Road map identifying and prioritising legislative amendments emanating from the National Integrated ICT Policy White Paper was developed. First drafts of the Postal services Amendment Bill and the SAPO SOC Ltd Amendment Bill was developed as planned. In line with developing a 3-year e-Services Programme, the draft e-Services Programme was developed and circulated to e-Government subcommittee members for inputs With regards to developing the National e-Strategy, extensive stakeholder consultations on the National e-Strategy discussion document were undertaken through multiple platforms. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

SIGNIFICANT ACHIEVEMENTS (2) The Department developed the draft ICT SMME Strategy, in line with ICT B-BBEE Sector Code With regards to SOC Rationalisation, the SITA SOC assessment report on rationalization was developed. In terms of promoting the RSA ICT Agenda, South Africa participated at the PAPU Plenipotentiary Conference where the Regional positions were adopted With regards to preparations for WTSA-16, the RSA position paper for International Standardisation programme was developed. Despite initial delays, the Department with regards to conducting a Climate and Culture survey, the Department concluded the development of the survey questionnaire and set up all platforms for the conducting of the actual survey. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROGRAMME 1: ADMINISTRATION SECOND QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration (1) 2016/17 TARGET: Organisational structure revised and implemented in line with strategy Q2 TARGET 1: Revised organizational structure developed, consulted and approved Partially Achieved Service Delivery Model (SDM), which informs the development of the Org. Structure, was developed and presented to Special DEC meeting on 07 July 2016 for approval. Reasons: The SDM was not approved on the basis that it was not fully aligned to the new mandate of DTPS. Hence the process of developing the structure could not commence. Current progress: The SDM is in the process of being finalised in consultation with DPSA Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration (2) 2016/17 TARGET: Climate & Culture survey conducted and Action Plan developed Q2 TARGET 2: Climate and culture survey Action Plan developed Partially Achieved Engagements were held with identified managers to enhance qualitative data . Overall themes were extracted from focus group discussions, interviews and Design Team and Project Team in order to inform the development of the survey questionnaire Reasons: Project was delayed by the late signing of the climate and culture survey contract which had a knock-on effect on the hosting of the C & C survey that would inform the development of the Action Plan Current progress: The Climate and Culture Survey has been concluded and the Department is in the process of developing the Action Plan for immediate implementation Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration (3) 2016/17 TARGET: Core business processes identified, documented, optimized and mapped so as to enable process automation Q2 TARGET: Identification, documentation and mapping of identified core business process commenced through the contracted service provider Partially Achieved Following engagements with SITA, a letter of advice from SITA was received concerning the return on investment on the project. A memo and a Contract for the appointment of the service provider was concluded. Reasons: Project delayed due to lack of sufficient funds as the actual project cost exceeded the budget which impacted on the appointment of the service provider. Current progress: CFO has identified required funds for the project within the Department, hence the project will now proceed accordingly. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration (4) 2016/17 TARGET: Enterprise Document Management and workflow system designed and developed Q2 TARGET: Designing of the Enterprise Document Management and workflow system commenced through appointed service provider Partially Achieved Through engagements with SITA, a revised proposal was received. Prepared a submission to CFO for recommendation for approval by Acting DG. Reasons: Due to financial constraints, resulting from the project costing more than the budgeted amount, the initial proposal with proprietary solution was rejected and a new proposal was received from SITA Current progress: Funds have been identified and the appointment of a service provider via SITA is in the final stages of being secured Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROGRAMME 2: INTERNATIONAL AFFAIRS SECOND QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

International Affairs (1) 2016/17 TARGET: RSA position for UPU developed towards regulations of ETOEs, promoting postal services as a driver for socio-economic inclusion Q2 TARGET: RSA position advanced through participation in Regional Postal conferences and outcomes report developed. Achieved South Africa participated at the PAPU Plenipotentiary Conference and Regional positions were adopted. 2016/17 TARGET: RSA position for WTSA developed to promote access to technology, manufacturing, conformance and interoperability for ICT SMME development Q2 TARGET: RSA position paper for International Standardisation programme developed and submitted for approval. RSA position paper was developed and submitted as planned. 2016/17 TARGET: RSA positon for SADC ICT Ministerial meeting promoting access to affordable ICT infrastructure, services and regional integration Q2 TARGET: RSA position advanced through participation in Regional SADC forums and outcomes report developed RSA Position was approved by the Minister and advanced at the SADC ICT Sub-Sector Committee (SCOM) meeting Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

International Affairs (2) 2016/17 TARGET: RSA position for BRICS developed focusing on skills development, R&D for innovation, and internet governance programmes Q2 TARGET: Draft RSA POA for implementation of BRICS ICT Agenda consulted with relevant stakeholders and submitted for approval Partially Achieved The DTPS BRICS TEAM was established and convened by International on 8 September to discuss and consider the proposed outline for the plan of action. Further to this, bilateral meetings were held with the Indian and Chinese Embassies to present our thoughts on RSA's plans for BRICS Reasons: Due to conflicting meeting schedules, DTPS could not meet with all relevant stakeholders as planned i.e. Brazil and Russia Current progress: The scheduled meetings took place in November 2016 in the form of the BRICS Ministers of Telecommunications meeting as well as the meeting of the BRICS Working Group on ICT Cooperation. Following the meetings, an Outcomes Report including recommendations for implementation was developed. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

International Affairs (3) 2016/17 TARGET: Country Position for International Internet Public Policy developed Q2 TARGET: Consultation on draft RSA position concept note on International Internet Public Policy Achieved National IGF held from 22 - 23 September 2016 and the Draft RSA position concept note on International Internet Public Policy position was advanced. 2016/17 TARGET: 1 South African placement in an identified Global ICT Governance Institution to influence the system of global governance Q2 TARGET: MoU with DIRCO negotiated for placement of official MoU with DIRCO was negotiated as planned and a final draft submitted. 2016/17 TARGET: 1 seat in Global ICT Governance Institution maintained Q2 TARGET: Consultations conducted on draft Strategy for elections in Global ICT Governance Institution Consultation on the draft strategy were undertaken with DIRCO for South African candidature for the UPU Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROGRAMME 3: POLICY, RESEARCH AND CAPACITY DEVELOPMENT SECOND QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Policy, Research and Capacity Development (1) 2016/17 TARGET:Draft ICT Legislation developed Q2 TARGET: Identification and prioritisation of legislative amendments finalised Achieved Road map identifying and prioritising legislative amendments emanating from the National Integrated ICT Policy White Paper was developed and approved. 2016/17 TARGET:Postal Services Amendment Bill developed Q2 TARGET: First Draft Postal Service Amendment Bill developed First draft Postal services Amendment Bill was developed as planned 2016/17 TARGET: South African Post Office Amendment Bill developed Q2 TARGET: First Draft South African Post Office Amendment Bill developed First Draft SAPO SOC Ltd Amendment Bill was developed as planned 2016/17 TARGET: ICT SMME Strategy developed in line with ICT B-BBEE Sector Code Q2 TARGET: Draft ICT SMME Strategy developed The Draft ICT SMME Strategy was developed as planned Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Policy, Research and Capacity Development (2) 2016/17 TARGET: 3 year e-Service Programme developed Q2 TARGET: Draft 3-year e-Services Programme developed Achieved Collated data for the development of second draft e-services programme. The draft e-Services Programme was developed and circulated to e-Government subcommittee members for inputs. 2016/17 TARGET: National e-Strategy developed Q2 TARGET: National consultation on National e-Strategy discussion paper conducted National e-Strategy Consultative Workshop was held at the Saint George Conference Centre on the 25th and 26th of August 2016. Academic consultative workshop on the National e-Strategy was held on the 11th of August 2016 at the Hatfield campus of the University of Pretoria. Consultative sessions on the National e-Strategy discussion document were held all DTPS branches on the 28th of September 2016. The National e-Strategy Inter-departmental Working Committee workshop was held on the 30th of September 2016 at the DTPS. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROGRAMME 4: ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT SECOND QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Enterprise Development and SOE Oversight 2016/17 TARGET: SOC Rationalisation assessment conducted and consolidated report developed (BBI, SITA, SENTECH and SAPO) Q2 TARGET: Assessment Report on rationalisation of additional SOC developed and submitted Achieved SITA SOC assessment report on rationalization was developed. Committees were revived with all SOCs participating. 2016/17 TARGET: Performance and compliance of SOC against strategic plans and relevant prescripts monitored and evaluated Q2 TARGET: Consolidated State of SOCs report for 2016/17 Quarter 1 developed and submitted State of SOCs report for 2016/17 Quarter 1 was developed and submitted as planned. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROGRAMME 5: ICT INFRASTRUCTURE SUPPORT SECOND QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Infrastructure Support (1) 2016/17 TARGET: Project Manage the roll-out of the Broadband connectivity Implementation Plan (Phase 1) towards connecting 2700 sites Q2 TARGET: Connectivity to an additional 675 identified sites project managed and monitored Not Achieved Progress: None Reasons: The Department has not yet connected the identified government institutions as planned due to challenges related to the finalisation of the appointment of the broadband connectivity service provider. Current progress: Following the withdrawal of the SITA tender, the Department is exploring available options to secure the appointment of the broadband connectivity service provider. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Infrastructure Support (2) 2016/17 TARGET: National Radio Frequency Plan (NRFP) reviewed and updated taking into consideration the outcomes of WRC-15 & national policies Q2 TARGET: Consultation conducted with relevant stakeholders related to NRFP requirements (Government Services) Partially Achieved Consultation with Government Security Services has commenced. Engagements have been held with Department of Defence and SAPS. Reasons: Delays with regards to response from relevant stakeholders in the Security Cluster Current progress: Following the receipt of relevant responses, the department was able to develop the draft NRFP, inclusive of spectrum for Government services, which was gazetted in December 2016, via ICASA Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FINANCIAL INFORMATION PERIOD: 01 JULY TO 30 SEPTEMBER 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Appropriation Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Appropriation Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

EXPENDITURE PROGRAMME BUDGET R'000 % PROJECTED BUDGET TO 30 SEPTEMBER 2016 R'000 EXPENDITURE R'000 VARIANCE R'000 AVAILABLE TO YEAR END R'000 % Spent Administration 193 337 8% 98 584 109 699 (11 115) 83 638 57% ICT International Affairs 44 710 2% 3 5 955 35 280 675 9 430 79% Policy Research and Capacity Dev 95 618 4% 47 390 40 681 6 709 54 937 43% ICT Enterprise Develop and SOE Oversight 891 801 37% 789 365 765 450 23 915 126 351 86% Infrastructure Suppport 1 191 946 49% 461 375 428 253 33 122 763 693 36% Total 2 417 412 100% 1 430 669 1 379 363 51 306 1 038 049 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development A global leader in the development and use of Information and Communication Technologies for socio-economic development

Expenditure per Branch Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Expenditure per Economic Classification Budget Expenditure Available Budget to year end % Spent Compensation of employees 213 713 99 639 114 074 47% Goods and services 494 583 81 913 412 670 17% Transfers & Subsidies 1 054 148 541 059 513 089 51% Payments for Capital Assets 4 968 6 720 (1 752) 135% Payment for Financial Assets 650 000 650 032 (32) 100% Total 2 417 412 1 379 363 1 038 049 57% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development A global leader in the development and use of Information and Communication Technologies for socio-economic development

Expenditure per Economic Classification Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Transfers to entities and International Organisations Entity / International Organisation Appropriation Actual Transfer Available to Year End % Spent Foreign governments and international organisations 23 363 26 136 (2 773) 112% National Electronic Media Institute of South Africa 77 200 38 100 39 100 49% Universal Service and Access Agency of South Africa 69 045 34 522 34 523 50% Universal Service and Access Fund 55 156 27 262 27 894 South African Post Office: Broadcasting Digital Migration 240 000 120 000 Universal Service and Access Fund: Broadcasting Digital Migration 589 384 294 692 TOTALS 1 054 148 540 712 513 436 51% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Transfers Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

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