DEPARTMENT OF TRANSPORT PORTFOLIO COMMITTEE ON TRANSPORT PERFORMANCE AND EXPENDITURE FIRST QUARTER 2016 / 17 1

Contents Overall Performance Overview Analysis Per Programme Areas of Non Achievement Expenditure Per Programme Expenditure Per Economic Classification Transfer Payments

Overall Performance Number of Planned Targets: 50 Number of Targets Achieved: 32 Number of Targets Not Achieved: 18 Overall Percentage: 64%

Overall Performance Contd.

Analysis Per Programme TOTAL NUMBER OF Q1 TARGETS NUMBER OF TARGETS ACHIEVED NUMBER OF TARGETS NOT ACHIEVED PERFORMANCE LEVEL ADMINISTRATION (ODG, COO, TIS, CFO) 9 6 3 67% INTEGRATED TRANSPORT PLANNING 2 4 33% RAIL TRANSPORT 5 60% ROAD TRANSPORT 10 50% CIVIL AVIATION 8 75% MARITIME TRANSPORT PUBLIC TRANSPORT 7 100% TOTAL 50 32 18 64%

Analysis Per Programme Contd.

Areas of Non Achievement: Programme 1 PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 1.3.1.2 Status report on the transport sector socio-economic empowerment programmes for GDYC developed Status report on the transport sector socio-economic empowerment programmes developed Conduct stakeholder consultations and compile a draft status report Coordinated information on the status of women socio economic empowerment programme in the DoT and Entities via email - Achieved Evidence submitted contrary to the TID

Areas of Non Achievement: Programme 1: Administration PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 7.1.1.2 Integrated Communications and Marketing Strategy implemented Integrated Communications and Marketing Plan implemented Monitor the implementation of the Integrated Communications and Marketing Plan Organised National Assembly and National Council of Provinces Budget Vote 2016 stakeholder events; Provided logistics, protocol and branding support for events attended by the Minister and Deputy Minister; Profiled the work of the department through media (Website, social media, statements/alerts, Opinion Piece); Drafted language policy. One Colloquium with staff organised; Resolved and communicated Presidential Hotline resolutions to the Presidency. Report Signed by the Chief Director not submitted as evidence

Areas of Non Achievement: Programme 1: Administration PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 7.2.1.2 DoT Risk Management Strategy implemented DoT Risk Management Strategy developed and monitored Review the Risk Management Strategy Risk management strategy reviewed and developed in Septemberr 2015

Programme 2: ITP PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 1.1.2.2 White Paper on the National Transport Policy submitted to Cabinet by March 2017 Submit the White Paper on the National Transport policy to Cabinet Facilitate publication of the reviewed White Paper in the government gazette Reviewed White Paper was presented to the DoT EXCO on the 13th June 2016 Not Achieved Inputs from Internal stakeholders delayed the process Revised specific deadlines in the 2nd and 3rd quarter such that 1st quarter target will be achieved 1.2.2.3 Harrismith Hub framework implementation plan submitted to Cabinet by March 2017 Harrismith Hub Framework Implementation Plan submitted to Cabinet Submit the Cabinet Memorandum for the draft Harrismith Hub Framework to the Minister Draft ToR to appoint the service provider has been finalised Framework not yet developed. Task team will be appointed to fast track the project, A roadmap will be presented to Act DDG for approval,

Programme 2: ITP PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 1.3.2.2 Road Tariff determination Framework submitted to Cabinet by March 2018 Road Tariff Determination Framework developed Develop inception report for the Road Tariff Determination Framework. ToR completed and prospective service provider approached by SCM to the briefing session on 10/05/2016. Not Achieved On the scheduled date of Compulsory Briefing session only one bidder attended, that resulted on Re-advertisement Re-advertisement of the bid on 08/07/2016. Catch up on outstanding deliverables in the first and second quarters. 1.6.2.1 Green Transport Strategy submitted to Cabinet by March 2017 Green Transport Strategy to Cabinet Conduct stakeholder consultations on the draft Green Transport Strategy with IGCC and National Committee on Climate Change (NCCC) Three stakeholder consultations meetings/workshops conducted. NCCC did not have a scheduled meeting on the 1st quarter NCCC have scheduled a meeting on the 15 July 2016 in which GTS is scheduled to be presented

Programme 3: Rail Transport PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 2.1.3.1 Draft National Railway Safety Regulator Bill submitted to cabinet by March 2017 Draft National Railway Safety Regulator Amendment Bill submitted to cabinet Conduct stakeholder consultation on the Draft national Railway Safety Regulator Amendment Bill Draft National Railway Safety Regulator Amendment Bill finalized Not Achieved Unavailability of key stakeholders Dates with stakeholders secured for July 2016 and National Consultative workshop planned for August 2016 2.1.3.2 National Railway safety Strategy submitted to Cabinet by March 2017 National Railway Safety Strategy submitted to cabinet Conduct stakeholder consultation on the National Railway safety strategy No consultations were conducted There need to be alignment on key strategic issues Stakeholder engagements secured for August and September 2016

Programme 4: Road Transport PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 1.4.4.1 White Paper on the Roads Policy submitted to Cabinet by March 2019 Draft White Paper on the Roads Policy developed Facilitate gazetting of the Cabinet Approved Green Paper on the Roads Policy for South Africa The proposed Green Paper on the Roads Policy for South Africa has not yet been gazetted. The team worked on the preparation of the Social Environmental Impact Assessment (SEIA) for submission to the Department of Monitoring and Evaluation. Not Achieved Delay in sourcing input from DPME prior Cabinet approval. The necessary SEIAs forms and supporting documents en route to DP ME

Programme 4: Road Transport PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 1.4.4.3 Access Road Development Plan submitted to Cabinet by March 2018 Draft Access Road Development Plan (ARDP) developed and consultations on the draft ARDP conducted in provinces Complete the draft ARDP and conduct consultations in KZN and EC provinces Completed the draft ARDP Conducted consultations in KZN Local authorities consulted through monthly progress meetings as well as National RRAMS workshop Not Achieved Rescheduled consultation for EC to second quarter. EC consultation to be lumped with MP, FS and GP provinces in the second quarter 2.1.4.2 Road Accident Benefit Scheme (RABS) submitted to Cabinet by March 2017 Road Accident Benefit Scheme (RABS) Bill submitted to Cabinet Conduct consultations with the National Treasury to finalise the proposed funding model Consultation with the National Treasury conducted Achieved - Proof of Consultation not submitted (Attendance register and minutes)

Programme 4: Road Transport PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 2.1.4.3 Road Safety Strategy for South Africa submitted to Cabinet by September 2016 Road Safety Strategy submitted to Cabinet Finalise the draft of the Road Safety Strategy Draft Road Safety Strategy finalise and presented to NEDLAC Achieved - Proof of consultation/Reports Attendance register 2.1.4.4 Founding legislations of Road Entities (CBRTA,RAF,RTMC & SANRAL) reviewed by March 2018 Inception Report for the Review of Founding Legislations of Road Entities developed Develop technical specifications for the review of founding legislations of Road Entities and conduct consultations with Road Entities Technical Specifications developed and Road Agencies consulted Attendance register for RTIA not submitted as per TID

Programme 5: Civil Aviation PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 2.1.5.1 Civil Aviation Amendment Bill submitted to Parliament by March 2017 Civil Aviation Amendm ent Bill sub- mitted to Cabinet and Parliame nt Publish the Civil Aviation Amendment Bill in the Government Gazette for public comments Publication of the Bill delayed Not Achieved Consultations elicited major internal comments that needed further consultations on comments received. This delayed the publication of the Bill Publication anticipated for September 2016

Programme 5: Civil Aviation PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 6.2.5.1 Regulations for the phasing out of the Chapter 2 Aircraft implemented Monitor implementation of the regulations for the phasing out of the Chapter 2 Aircraft Request and analyse aircraft moveme nt data from ATNS and ACSA to monitor the presence of Chapter 2 Aircraft in the SA The information has been requested from ATNS and DoT on monitoring Chapter 2 Aircrafts in SA airspace - Evidence not submitted

Programme 6: Maritime Transport PERFORMANCE INDICATOR 2016/17 ANNUAL TARGET QUARTER 1 TARGET PROGRESS SELF-ASSESSMENT REASON FOR DEVIATION CORRECTIVE MEASURE & ADDITIONAL COMMENTS MODERATED ASSESSMENT PERFORMANCE RATING 2.1.6.3 IMO World Maritime Day Parallel Event hosted by March 2020 Project Plan for the 2020 IMO World Maritime Day Parallel Event developed Establish the Steering Committee for the IMO 2020 World Maritime Day Parallel Event Submission for the Establishment of the Steering committee submitted for Ministerial approval on the 29th June 2016. Database for the steering committee is also attached in the submission. Not Achieved More time was spent identifying relevant stakeholders as it will be the first time South Africa hosting the World Maritime Day parallel event. A comprehensive database was compiled to ensure that the entire maritime industry is fully represented. 2.1.6.4 Infrastructure support for Operation Phakisa Ocean Economy established by March 2017 Infrastructure for the DoT Marine Manufacturing Delivery Unit established Conceptualise institutional arrangements for Operation Phakisa Office Space is secured and furnished, Achieved - Concept document for institutional arrangements for Operation Phakisa not submitted

Expenditure 1st quarter Expenditure per Programme Programme Budget Cashflow projection Expenditure 1st quarter Available Under / (Over) spent % Spent   R'000 1. Administration 394 763 95 900 63 936 330 827 31 964 16% 2. Integrated Transport Planning 78 954 18 729 13 370 65 584 5 359 17% 3. Rail Transport 18 985 533 3 768 623 3 766 146 15 219 387 2 477 20% 4. Road Transport 24 525 567 6 422 606 6 589 760 17 935 807 (167 154) 27% 5. Civil Aviation 253 223 44 364 35 689 217 534 8 675 14% 6. Maritime Transport 121 733 35 450 14 679 107 054 20 771 12% 7. Public Transport 11 655 390 1 088 879 989 825 10 665 565 99 054 8% Total Department 56 015 163 11 474 551 11 473 405 44 541 758 1 146 19

Expenditure per Programme (Continued) Administration Under expenditure of R35 million was mainly due to outstanding invoices for the lease of office accommodation and “Arrive Alive” campaigns. Integrated Transport Planning Under expenditure of R4 million is mainly due to outstanding invoices for services rendered on the “Multi Modal Transport Planning and Coordination Act” project as well as other projects. Rail Transport Under expenditure of R2 million was mainly due to the delays in the appointment of the service provider for the “Interim Rail Economic Regulatory Capacity” project. 20

Expenditure per Programme (Continued) Road Transport Under expenditure of R3.2 billion is mainly due to delays in transfer payments: The Provincial Road Maintenance Grant (PRMG) payments were scheduled to be paid in July. Due to cash flow problems of National Treasury the payment date was moved to August. The revision of the payment schedule for the Rural Road Asset Management Grant (RRAMS). Goods and Services was over spent due to R136.6 million paid for Electronic National Traffic Information System (eNaTIS) services. The function relating to eNaTIS could not be transferred to the Road Traffic Management Corporation (RTMC) from May 2015 due to subsequent litigation. Civil Aviation The under expenditure of R10.4 million was mainly due to delays in transfer payments to the South African Maritime Safety Authority (Maritime Rescue Coordination Centre) as well as the African Civil Aviation Commission. An amount of R100 million was included in the budget for 201617 for a new Satellite Tracking System. The programme indicated that it might not be able to spend the amount by the end of the financial year (earmarked allocation). 21

Expenditure per Programme (Continued) Maritime Transport Under expenditure of R29 million was mainly due to: Delays in a number of projects (feasibility study on tug boat services; training on UN dangerous goods, boat building repairs and skippers; salvage strategy; Maritime transport policy and legislation). Under expenditure on the oil pollution prevention project due to outstanding invoices. Funds of R40 million will have to be shifted to cover shortfalls as a result of the cost of incidents that the service provider had to respond to if funds are not allocated on the Adjusted Budget. Public Transport The under expenditure of R 250 million was mainly due to: The revised payment schedule for Public Transport Network Grant (PTNG) Rejected transfer payment for Public Transport Operations Grant (PTOG) for Western Cape Province Slow spending in taxi recapitalisation which is demand driven Delays in other projects on goods and services. 22

Expenditure 1st quarter Expenditure per Economic Classification Per Economic Classification Budget Cashflow projection Expenditure 1st quarter Available Under / (Over) spent % Spent   R'000 Compensation of Employees 437 139 108 926 94 444 342 695 14 482 22% Goods and Services 754 915 143 869 222 818 532 097 (78 949) 30% Transfers & Subsidies 54 818 777 11 220 053 11 155 072 43 663 705 64 981 20% Machinery and Equipment 4 332 1 703 1 069 3 263 634 25% Payment for financial assets - 2 (2) 0% Total Department 56 015 163 11 474 551 11 473 405 44 541 758 1 146 23

Expenditure per Economic Classification (Continued) Compensation of Employees Under spent by R20 million mainly due to the non-implementation of the salary increments for senior managers (implemented august 2016); pay progression (due to late finalisation of assessments) as well as a saving which was as a result of once off additional funding for filling of critical posts. Goods and Services Over spending of R62 million was mainly due to the cost of the unfunded mandate of maintaining and operating the Electronic National Traffic Information System (eNaTIS). The Department is under spending on other projects across programmes as indicated under Expenditure per Programme. Transfers & Subsidies Under spent due to the revision of payment schedules for conditional grants, a rejected transfer payment, slow spending on taxi recapitalisation and delays in other transfer payments. 24

Transfer Payments Transfer Payments (R'000) Budget Expenditure Available % Spent Conditional Grants:   Provincial Roads Maintenance 10 202 503 2 586 903 7 615 600 25% Public Transport Operations 5 400 292 935 728 4 464 564 17% Public Transport Network 5 592 691 0% Rural Road Asset Management 101 514 Public Corporations: Passenger Rail Agency of South Africa (PRASA) 18 890 267 3 702 742 15 187 525 20% Departmental Agencies & Accounts: S.A. National Roads Agency 13 915 586 3 797 722 10 117 864 27% Road Traffic Management Corporation 193 862 48 465 145 397 Railway Safety Regulator 55 987 100% S.A. Civil Aviation Authority 21 191 5 298 15 893 Ports Regulator of South Africa 28 561 7 141 21 420 Road Traffic Infringements Agency 10 093 2 523 7 570 Maritime Rescue Co-ordination Centre 7 586 Transport SETA 1105 1 105 Total 54 421 238 11 142 509 43 278 729 25

Transfer Payments (Continued) Transfer Payments (R'000) Budget Expenditure Available % Spent Other:   Taxi scrapping 353 442 0% Non Profit Institutions 2 542 South African National Taxi Council 20 275 6 000 14 275 30% Higher Education Institutions 9 939 801 9 138 8% International Organisations 11 163 5 641 5 522 51% Leave pay and donations 178 121 57 68% Sub Total 397 539 12 563 384 976 3% Total 54 818 777 11 155 072 43 663 705 20% 26

SPENT BY THE PROVINCES TO JUNE 2016 % ON TRANSFERRED EXPENDITURE Provincial Road Maintenance Grant PROVINCES ALLOCATION TRANSFERRED BY JUNE 2016 SPENT BY THE PROVINCES TO JUNE 2016 AVAILABLE BUDGET % ON TRANSFERRED EXPENDITURE   R'000 R’000  Eastern Cape 1 245 877 303 928 342 024 903 853 24% Free State 1 245 600 503 212 288 882 956 718 40% Gauteng 505 696 101 448 138 400 367 296 20% KwaZulu-Natal 1 912 947 422 288 414 799 1 498 148 22% Limpopo 994 630 247 983 285 029 709 601 25% Mpumalanga 1 637 077 365 577 348 947 1 288 130 Northern Cape 955 021 297 957 205 718 749 303 31% North West 865 778 176 560 134 335 731 443 Western Cape 839 877 212 950 158 001 681 876 Unallocated TOTAL 10 202 503 2 631 903 2 316 135 7 886 368 26% 27

SPENT BY THE PROVINCES JUNE 2016 % ON TRANSFERRED EXPENDITURE Public Transport Operations Grant PROVINCES ALLOCATION TRANSFERRED BY JUNE 2016 SPENT BY THE PROVINCES JUNE 2016 AVAILABLE BUDGET % ON TRANSFERRED EXPENDITURE Eastern Cape 218 217 63 514 38 877 154 703 29% Free State 241 257 63 247 55 403 178 010 26% Gauteng 2 033 588 524 741 330 333 1 508 847 KwaZulu-Natal 1 011 045 264 945 150 917 746 100 Limpopo 326 129 80 567 50 784 245 562 25% Mpumalanga 549 133 141 694 130 595 407 439 Northern Cape 49 097 12 626 10 092 36 471 North West 100 926 26 707 9 235 74 219 Western Cape 870 900 232 430 138 194 638 470 27% Unallocated -   Total 5 400 292 1 410 471 914 430 3 989 821 28

SPENT BY THE MUNICIPALITIES TO JUNE 2016 Public Transport Network Grant MUNICIPALITY ALLOCATION SPENT BY THE MUNICIPALITIES TO JUNE 2016 AVAILABLE BUDGET % ON TRANSFERRED R'000 EC: Buffalo City - 0% EC: Nelson Mandela Bay 186 128 8 862 177 266 5% FS: Mangaung 48 128 12 874 35 254 27% GT: City of Tshwane 931 609 601 497 330 112 65% GT: Ekurhuleni 339 296 180 408 158 888 53% GT: City of Johannesburg 1 151 368 442 923 708 445 38% KZN:Msunduzi 213 271 31 628 181 643 15% KZN: eThekwini 1 232 168 789 954 442 214 64% LP: Polokwane 184 189 105 742 78 447 57% MP: Mbombela 116 540 57 652 58 888 49% NW: Rusternburg 552 567 334 828 217 739 61% WC: George 116 325 64 429 51 896 55% WC:City of Cape Town 516 745 35 822 94% Total 5 624 156 3 147 542 2 476 614 56% 29

Thank you 30