Department of Transport Portfolio Committee on Transport Expenditure to Quarter 2 of 2012/13 13 November 2012 1

Contents: Budget per programme Budget per economic classification Adjustments Virements Adjusted Budget vs Expenditure Expenditure Analysis per Programme Expenditure on Conditional Grants Expenditure on Transfers Overview of Public Entities 2

BUDGET PER PROGRAMME 3 PER PROGRAMME Voted (Main appropria-tion) Roll-overs Unforeseen/ unavoidable Virements and shifts due to savings Self-finan-cing Declared savings Significant and unforsee-able economic and financial events Total adjust-ments Adjusted appropria-tion Administration 317,473 - 14,969 1,407 16,376 333,849 Integrated Transport Planning 88,542 34,900 (5,272) 322 29,950 118,492 Rail Transport 10,298,893 2,308 163 2,471 10,301,364 Road Transport 17,928,809 4,468 297,000 428 301,896 18,230,705 Civil Aviation 70,022 450,000 284 450,284 520,306 Maritime Transport 138,543 20,000 (9,697) 173 10,476 149,019 Public Transport 9,986,670 38,700 (32,230) 353 6,823 9,993,493 Total 38,828,952 80,376 470,000 3,130 818,276 39,647,228 3

PER ECONOMIC CLASSIFICATION Voted (Main appropriation) Roll-overs Unforeseen / unavoidable Virements and shifts due to savings Self-finan-cing Declared savings Significant and unforseeable economic and financial events Total adjustments Adjusted appropriation Current Payments 848,083 80,376 20,000 (6,100) 297,000 - 3,130 394,406 1,242,489 Compensation of employees 316,129 319,259 Goods and services 531,954 391,276 923,230 Transfers and subsidies 37,976,514 450,000 4,100 (32,230) 421,870 38,398,384 Provinces and municipalities 17,324,512 Departmental agencies and accounts 9,895,405 1,000 9,896,405 Higher education institutions 9,648 Foreign governments and international organisations 6,032 3,100 9,132 Public corporations and private enterprises 10,227,905 10,677,905 Non-profit institutions 17,827 Households 495,185 462,955 Payments for capital assets 4,355 2,000 6,355 Machinery and equipment Total 38,828,952 470,000 818,276 39,647,228 4

PRG 2: INTEGRATED TRANSPORT PLANNING ADJUSTMENTS: ROLLOVERS ROLL OVER (R’000) PRG 2: INTEGRATED TRANSPORT PLANNING Funds rolled over for the National Household Travel Survey 34,900 PRG 3: RAIL TRANSPORT Funds rolled over for the development of Rail Policy and Act 2,308 PRG 4: ROAD TRANSPORT Funds has rolled over for the S'hamba Sonke programme management support service, 4,468 PRG 7: PUBLIC TRANSPORT Funds rolled over for the technical support and verification of bus contracts payments in Limpopo. 8,500 Funds rolled over for the technical support and verification of road infrastructure payments in Limpopo 30,200 TOTAL: ROLL OVER 80,376 5

UNFORESEEN AND UNAVOIDABLE PRG 7: MARITIME TRANSPORT ADJUSTMENTS: UNFORESEEN AND UNAVOIDABLE UNFORESEEN AND UNAVOIDABLE PRG 5: CIVIL AVIATION Expenditure has been approved for the refurbishment of Mthatha Airport 450,000 PRG 7: MARITIME TRANSPORT Expenditure has been approved for the removal of Seli 1 wreck from the Bloubergstrand beach near Table Bay 20,000 TOTAL 470,000 OTHER ADJUSTMENTS Adjustments due to significant and unforeseeable economic and financial events 3,130 6

ADJUSTMENTS: SELF FINANCING AND DECLARED SAVINGS PRG 4: ROAD TRANSPORT Funds collected from transaction fees and has been allocated to the department for the payment to the service provider for the maintenance and upgrade of the electronic National Traffic Information System (eNaTIs) 297,000 DECLARED SAVINGS PRG 7: PUBLIC TRANSPORT Funds has been declared as under spending on Taxi recapitalisation transfer 32,230 7

VIREMENTS 8 FROM: TO: Programme by economic classification Motivation   TO: Programme by economic classification Motivation R thousand Programme 1 Goods and services Funds shifted from the sub-programme: Ministry due to the reprioritization on goods and services. (2,000) Machinery and equipment Funds shifted within the sub- programme to fund the purchases of the new vehicle for the Minister. 2,000 Programme 2 Funds shifted from Programme 2: Integrated Transport Planning in the sub-programme: Macro Sector Planning due to a departmental reprioritization process. (5,272) Funds shifted to Programme 1: Administration in the sub-programme: Management to fund the consultants to address the Auditor-General's report 5,272 8

VIREMENTS CONTINUED 9 FROM: TO: Programme by economic classification   TO: Programme by economic classification Motivation R thousand Programme 5 Goods and services Funds shifted from the sub-programme: Aviation Safety and Security. Funds were initially reprioritized for the International Civil Aviation day on goods and services   (1,000) Departmental agencies and accounts Funds shifted to the sub-programme: Aviation Oversight to fund the International Civil Aviation Day. Funds will increase the transfer to the South African Civil Aviation Authority. 1,000 Funds shifted from the sub-programme: Aviation Regulation  which were initially reprioritized on goods and services to fund the SADC Safety and Airworthiness (3,100) Foreign governments and international organisations Funds shifted to the sub-programme: Aviation Oversight to fund the SADC Safety and Airworthiness Funds will increase the transfer to the International Civil Aviation Authority 3,100 9

VIREMENTS CONTINUED 10 FROM: TO: Programme by economic classification   TO: Programme by economic classification Motivation R thousand Programme 6 Programme 1 Goods and services Funds shifted from Programme 6: Maritime Transport in the sub-programme: Implementation, monitoring and evaluation due to a departmental reprioritisation process. (9,697) Funds shifted to Programme 1: Administration in the sub-programme: Management to fund the consultants to address the Auditor-General's report a and the International Maritime Organisation Diplomatic conference 9,697 10

ADJUSTED BUDGET VS EXPENDITURE PER PROGRAMME Adjusted Appropriation Total Expenditure April to Sept 2012 Expenditure as % of Adjusted Appropriation Available budget Administration 333,849 166,799 50.0% 167,050 Integrated Transport Planning 118,492 28,402 24.0% 90,090 Rail Transport 10,301,364 5,142,026 49.9% 5,159,338 Road Transport 18,230,705 9,397,997 51.6% 8,832,708 Civil Aviation 520,306 32,609 6.3% 487,697 Maritime Transport 149,019 53,002 35.6% 96,017 Public Transport 9,993,493 2,890,415 28.9% 7,103,078 Total 39,647,228 17,711,250 44.7% 21,935,978 11

ADJUSTED BUDGET VS EXPENDITURE CONTINUED PER ECONOMIC CLASSIFICATION Adjusted Appropriation Total Expenditure April to Sept 2012 Expenditure as % of Adjusted Appropriation Available budget Current Payments 1,242,489 391,321 31.5% 851,168 Compensation of employees 319,259 149,820 46.9% 169,439 Goods and services 923,230 241,501 26.2% 681,729 Transfers and subsidies 38,398,384 17,316,269 45.1% 21,082,115 Provinces and municipalities 17,324,512 7,043,942 40.7% 10,280,570 Departmental agencies and accounts 10,346,405 4,968,200 48.0% 5,378,205 Higher education institutions 9,648 4,876 50.5% 4,772 Foreign governments and international organisations 9,132 3,231 35.4% 5,901 Public corporations and private enterprises 10,227,905 5,113,953 50.0% 5,113,952 Non-profit institutions 17,827 8,000 44.9% 9,827 Households 462,955 174,067 37.6% 288,888 Payments for capital assets 6,355 3,660 57.6% 2,695 Machinery and equipment 3,597 56.6% 2,758 Payments for financial assets - 63 N/A (63) Total 39,647,228 17,711,250 44.7% 21,935,978 12

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME Programme 1: Administration The programme has been allocated a total adjusted budget of R333.8 million. To date the programme has spent R166.8 million or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R149.7 million or 45%. 13

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 2: Integrated Transport Planning The programme has been allocated a total adjusted budget of R118.5 million. The programme has spent R28.4 million to date or 24% of the allocated adjusted budget, against the benchmark expenditure drawings target of R44.3 million or 37%. The under spending is mainly due delays on projects such as the National Household Travel Survey, the update of the National Freight databank, and cross border optimization plan. The service level agreements have been signed on most of the projects and the expenditure is expected to escalate in the coming months. 14

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 3: Rail Transport A total adjusted budget of R10.301 billion has been allocated. The programme has spent R5.142 billion to date or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R5.149 billion or 50%. The under spending of R7 million against the expenditure drawings target was mainly due in the following goods and services projects; Feasibility Study Rail Manufacturing, Rail Economic Regulator, Rail safety gap analysis and Institutional Reform in Republic of South Africa (RSA) project and the delay in the approval of Rail Policy & Act. Expenditure is expected to escalate in the coming months. 15

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 4: Road Transport A total adjusted budget of R18.231 billion has been allocated. The programme has spent R9.398 billion to date or 52% of the allocated adjusted budget, against the benchmark expenditure drawings target of R9.406 billion or 52%. The under spending is mainly due delays on the following projects: Decade of Action for Road Safety, and review of drivers training manual. The programme is busy with the process to appoint the service providers and expenditure is expected to escalate in the coming months. 16

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 5: Civil Aviation A total budget of R520.8 million has been allocated. The programme has spent R32.6 million to date or 6.3% of the allocated adjusted budget, against the benchmark expenditure drawings target of R37.7 million or 7.2%. The under spending is mainly due to delays in the establishment of Regulating Committee and the establishment of the Civil Aviation Safety Investigation Board. 17

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 6: Maritime Transport A total adjusted budget of R149 million has been allocated. The programme has spent R53 million to date or 36% of the allocated adjusted budget and against the benchmark expenditure drawings target of R67.5 million or 45%. The under spending is mainly due to delays in concluding the contract for the watchkeeping services and late invoices for oil pollution prevention. 18

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.) Programme 7: Public Transport A total adjusted budget of R9.993 billion has been allocated. The programme has spent R2.890 billion to date or 30% of the allocated adjusted budget and against the benchmark expenditure drawings target of R2.970 billion or 30%. The under spending is mainly due to lengthy administration process with regard to the transfer payment for Taxi recapitalisation. The under spending on goods and services was mainly due to delays in the following projects: the development of the scholar transport framework, the development of migration plan for scholar transport and integrating the Shova Kalula into scholar transport services. Expenditure is expected to escalate in the coming months of the financial year. 19

EXPENDITURE ON CONDITIONAL GRANTS Details of Grants Cumulative amounts (R’000) Quarter 1 July August Sept Payment Schedules: Rural Roads Asset Management 37,295 Public Transport Infrastructure & Systems 228,000 458,000 Provincial Roads Maintenance 1,995,463 4,390,017 Public Transport Operations 1,122,490 1,467,870 1,813,250 2,158,630 Payments made: 31,967 158,000 4,211,580 Variances: 5,328 70,000 178,437 20

EXPENDITURE ON CONDITIONAL GRANTS (Cont.) Details of Grants Cumulative amounts (R’000) Quarter 1 July August Sept Variances: Rural Roads Asset Management 5,328 Public Transport Infrastructure & Systems 70,000 Provincial Roads Maintenance 178,437 Public Transport Operations Variances in July 2012 were due to payments that were rejected on the SafetyNet system: Rural Roads Asset Management Grant: Bank accounts were amended - payments were rejected and paid in August 2012: Uthungu, Amajuba and Umgungundlovu District Municipalities Rm 1,776 each Public Transport Infrastructure & Systems Grant: Payments to Metropolitan Municipalities were rejected and paid in August 2012: Ekhurhuleni R10m, Nelson Mandela Bay R10m and Johannesburg R50m Provincial Roads Maintenance Grant: The payment to North West Provincial Treasury was rejected and paid in August 2012 21

EXPENDITURE ON CONDITIONAL GRANTS (Cont.) Provincial Roads Maintenance Grant: Summary 2011/12 to Quarter 2 of 2012/13 R’000 % Total paid to Provinces 10,847,371 100.00% Total spent by Provinces 8,591,723 79.2% Unspent to Quarter 2 of 2012/13 2,255,648 20.8% Public Transport Operations Grant: Summary 2010/11 to Quarter 2 of 2012/13 R’000 % Total paid to Provinces 10,185,936 100.0% Total spent by Provinces 9,732,449 95.55% Unspent to Quarter 2 of 2012/13 453,487 4.45% 22

EXPENDITURE ON CONDITIONAL GRANTS (Cont.) Public Transport Infrastructure and Systems Grant: Summary 2005/06 to Quarter 2 of 2012/13 R’000 % Total paid to Municipalities 16,113,446 100.0% Total spent by Municipalities 11,467,244 71.2% Unspent to Quarter 2 of 2012/13 4,646,202 28.8% Rural Road Asset Management Grant: Summary 2011/12 to Quarter 2 of 2012/13 R’000 Total paid to Municipalities 72,734 100% Total spent by Municipalities collectively 2,727,851 100%+ Notes: Of the 21 Municipalities: 9 Spent much more than the grant that was received on road asset management 4 Did not yet spend funds received 6 Started spending in the 1st Quarter of 2012/13 – No funds were transferred in the 1st Quarter 23

EXPENDITURE ON TRANSFERS (EXCL. CONDITIONAL GRANTS) Recipient Transfer (R’000) Phased Budget Phased Variance Notes Passenger Rail Agency of S.A. 5,113,953 S.A. National Roads Agency 4,864,026 Road Traffic Management Corporation 61,809 41,206 (20,603) Advance payment Railway Safety Regulator 19,675 S.A. Civil Aviation Authority 8,013 Ports Regulator 7,535 Marine Rescue Co-Ordination Centre 3,078 3,079 1 S.A. Maritime Safety Authority 1,565 Road Traffic Infringements Agency 2,500 Transport Education & Training Authority 104 Await training schedules S.A. National Taxi Association 8,000 8,230 230 Search and Rescue organisations 684 Await reports Universities 6,207 8,295 2,088 Paid per schedules Foreign memberships 3,231 3,016 (215) Most fees already paid Taxi Recapitalisation 173,841 247,521 73,680 Less taxis scrapped excl Sept 2012 Leave pay and donations 2 (2) To shift funds TOTALS 10,273,435 10,329,402 55,967 24

Cash and Cash Equivalents Cash increase (decrease) OVERVIEW OF PUBLIC ENTITIES R’000: As at 30 September 2012 - Financial Year 2012/13 Entity Retained Earnings Surplus (Deficit) Cash and Cash Equivalents Cash increase (decrease) Net Current Assets ACSA 9,957,849 703,829 3,196,171 1,215,786 2,832,518 ATNS 1,105,546 151,253 582,640 56,971 560,330 RAF (46,056,084) 411,713 5,494,011 1,249,000 (4,506,612) Of which 41,688,126 Provision for outstanding claims PRASA Group (2,305,191) (523,561) 4,130,842 (329,234) 3,084,468 SANRAL (7,073,602) (925,909) 6,154,232 (3,077,699) 2,934,318 SACAA 67,023 16,086 185,534 (4,982) 99,570 SAMSA 176,346 (53,778) 171,863 56,607 165,202 C-BRTA 101,610 27,012 111,139 26,488 94,313 RSR 22,488 11,150 8,658 7,370 29,211 RTMC (207,457) (4,283) 212,366 81,925 (215,184) RTIA 15,785 9,077 1,668 15,015 PR 8,518 3,049 8,032 2,272 7,592 25

ABBREVIATIONS Abbreviation Meaning PRASA Passenger Rail Agency of South Africa Ltd. RSR Railway Safety Regulator SANRAL South African National Roads Agency SOC Ltd. RTMC Road Traffic Management Corporation CBRTA Cross Border Road Transport Agency RTIA Road Traffic Infringements Agency RAF Road Accident Fund ACSA Airports Company of South Africa Ltd. ATNS Air Traffic and Navigation Services Company Ltd. SACAA South African Civil Aviation Authority SAMSA South African Maritime Safety Authority PR Ports Regulator of South Africa PRMG Provincial Roads Maintenance Grant PTIS Public Transport Infrastructure and Systems Grant PTOG Public Transport Operations Grant BEE Black Economic Empowerment SADC Southern African Development Community 26

Thank you 27