DEPARTMENT OF TRANSPORT PORTFOLIO COMMITTEE PRESENTATION 2ND QUARTER 2015/16

Organisational Health Financial Information Contents Overview Performance Analysis Organisational Health Financial Information 2

Overview Report focuses on the progress made with the implementation of programmes & projects in the period covering 01 July 2015 – 30 September 2015; Focus was on optimal performance of deliverables in terms of the MTEF 2015/16 – 2017/18; Report in compliance with relevant statutory requirements

Department Of Transport (Overall) Total Number of targets = 50 % Achievement = 43 targets (86%) % Not Achieved = 7 targets (14%)

Department Of Transport (Overall) 39,8% Women in SMS Expenditure 51% Vacancy Rate 18.9% 1,79% Disabled *Vacancy Rate, Expenditure and Equity Stats are as at end of September 2015 while Performance covers only Q2

Department Of Transport (Quarter to Quarter) PROGRAMME TOTAL NUMBER OF TARGETS ACHIEVED Q1 ACHIEVED Q2 Non / Improvement from previous quarter Number of targets % Administration Q1 = 7 / Q2 = 8 6 85.7% 7 87.5% Integrated Transport Planning 9 77.8% 100.0% Rail Transport 5 2 40.0% Road Transport 4 Civil Aviation 8 75.0% Maritime Transport 50.0% 3 37.5% Public Transport DoT (Overall ) 50 37 75.5% 43 86.0%

PERFORMANCE PER PROGRAMME

Administration: Key Notable Q2 Achievements Human Resource Development: 59 interns exposed to training intervention Upgrading of DoT internet system: Internet system upgraded and roll out will continue in the 3rd quarter Enterprise Architecture: Application and Data architectures finalised

Administration: Notable Q2 non-achievements Vacancy Rate: Only 21 vacant posts were filled during the quarter against a target of 29. The shortfall was as a result of a moratorium placed by the National Treasury on filling vacant posts due to unavailability of funding. Remedial Action: DoT is in the process of engaging the National Treasury for consideration of application for additional funds.

Administration: Carry-Over deliverable from Q1 International Relation Strategy: The draft of the International Relations Strategy was finalised in Quarter 2 and stakeholder consultations on the strategy were conducted.

ITP: Key Notable Q2 Achievements Review of the White Paper on the National Transport Policy: Policy Gap Analysis has been conducted Review of the Road Freight Strategy: Stakeholder consultations conducted with the National Transport Forum Infrastructure Funding Framework and Transport Pricing Framework: Stakeholder consultations conducted with National Taxi Association, SA Bus Operation Association Public Sector Participation Framework: Draft PSP Framework developed and consultations conducted with PRASA, Transnet, DBSA and the National Treasury

ITP: Carry-Over deliverable from Q1 Transport Pricing Framework: Inception report developed accordingly and stakeholder consultations conducted as targeted in Q2. Road Freight Strategy: Service provider appointed and consultative workshop held with the National Transport Forum as targeted in Quarter 2.

Rail Transport: Key Notable Q2 Achievements National Railway Policy: Green Paper on the National Railway Policy approved by Cabinet in August 2015. The launch and stakeholder consultations of the Green Paper took place in September 2015. National Railway Safety Regulator Bill: Draft Amendment Bill developed

Rail Transport: Carry-Over deliverable from Q1 National Railway Policy: Green Paper approved by Cabinet in August 2015 and stakeholder consultations commenced in September 2015 as targeted. National Railway Safety Regulator Bill: Scoping and needs analysis conducted; and draft Bill developed as targeted. National Railway Safety Strategy: Inception report and a draft conceptual report developed.

Road Transport: Key Notable Q2 Achievements Roads Policy: Stakeholder consultations on the Policy conducted during the quarter and are ongoing S’hamba Sonke Programme: National Support for Provincial Road Maintenance: Monitoring of projects ongoing. Progress reports on expenditure and physical indicators provided for the quarter AARTO Amendment Bill: Bill approved by JCPS Cluster in June 2015 for presentation at Cabinet .

Civil Aviation: Key Notable Q2 Achievements National Civil Aviation Policy: Stakeholder consultations conducted in July 2015 and stakeholder comments incorporated in August 2015. The Policy was presented at the ESEID Cluster in September 2015. National Airports Development Plan: Stakeholder inputs discussed and incorporated in August 2015 and presented to the ESEID Cluster. Accident and Incident Investigations: 30 occurrence reports published with 13 safety recommendations and 2 emergency recommendations made.

Civil Aviation: Carry-Over deliverable from Q1 ACSA and ATNS Amendment Bills: Stakeholder consultations ongoing. Regulations for the phasing out of the Chapter 2 Aircraft: Legal vetting process complete and draft regulations submitted to Minister for approval as targeted.

Maritime Transport: Key Q2 Notable Achievements Merchant Shipping Bill: Bill approved by the PCOT and NCOP; and will be presented at the National Assembly African Maritime Charter: Charter presented to PCOT in September 2015

Maritime Transport: Notable Q2 non-achievements National Maritime Transport Policy: The Green Paper could not be finalised for submission to the ICTS Cluster due to capacity constraints Remedial Action: Service provider to be appointed to finalise the Green Paper and the submission to ICTS will be fast-tracked Cabotage Policy: The appointment of the service provider has not yet been finalised Remedial Action: Fast tracking the appointment of the service provider

Maritime Transport: Notable Q2 non-achievements Cabotage Strategy and Bill: The appointment of the service provider has not yet been finalised Remedial Action: Fast tracking the appointment of the service provider Inland Waterway Strategy: Stakeholder inputs still being captured Remedial Action: Stakeholder meeting to be convened in Q3 to finalise inputs

Maritime Transport: Carry-Over deliverable from Q1 Recommendations of mock audit findings: Red Flag: The audit is complete and the report has been finalised. Initiating process of stakeholder consultations 1st and 2nd quarter targets missed.

Public Transport: Key Notable Achievements Rural Transport Strategy: Reviewed strategy submitted to MinMEC Integrated Public Transport Turnaround Plan: Draft plan presented to Provinces and Bus Industry in July 2015

Public Transport: Notable Q2 non-achievements Land Transport Amendment Bill: Bill submitted to Cabinet in Q1. Cabinet recommended further consultations with CoGTA, which were subsequently held in July 2015. Bill currently being processed for re-submission to Cabinet. Remedial Action: Bill will be submitted to State Law Advisors once approved by Cabinet.

Organisational Health Vacancy Rate Current vacancy rate is 18%. Down by 0.58% from 1st Quarter. Notable high vacancy rates in ODG (21%), TIS (26%), Road Transport (28%), Civil Aviation (21%) and Maritime Transport (21%) Total of 38 vacant positions in SMS

Organisational Health Employment Equity Female representation in SMS level stands at 40% Of the 38 vacant SMS positions, 30 are earmarked for females 2 SMS members who have disabilities (1.8%)

Governance Risk Management Risk Management Strategy developed and approved. Responses to Audit Findings Action plans to address 2014/15 Audit Findings developed and implemented.

Factors Affecting Performance Government-wide policy decisions (E.g. National Treasury moratorium on filling of vacant posts) Non-availability of evidence to support reported information Evidence submitted not in line with approved Technical Indicator Descriptions Capacity constraints (skills and vacancies) External dependencies beyond DoT control Prolonged procurement processes

FINANCIAL INFORMATION

Contents Expenditure per Programme to 30 September 2015 Expenditure per Economic Classification to 30 September 2015 Transfer Payments Provincial Road Maintenance Grant Public Transport Operations Grant

Expenditure per Programme to 30 September 2015 Original Budget Virements and Additional funding Adjusted budget Cashflow projection Expenditure Available Under / (Over) spent % Spent   R'000 R'000   1. Administration 383 457 - 175 527 195 222 188 235 (19 695) 51% 2. Integrated Transport Planning 80 583 7 500 88 083 40 457 35 228 52 855 5 229 40% 3. Rail Transport 18 311 364 10 965 870 10 960 744 7 350 620 5 126 60% 4. Road Transport 22 784 917 257 780 23 042 697 11 972 285 12 090 117 10 952 580 (117 832) 52% 5. Civil Aviation 149 526 81 200 70 905 78 621 10 295 47% 6. Maritime Transport 111 089 10 000 121 089 55 203 45 933 75 156 9 270 38% 7. Public Transport 11 536 361 (17 500) 11 518 861 3 941 837 3 796 600 7 722 261 145 237 33% Total Department 53 357 297 53 615 077 27 232 379 27 194 749 26 420 328 37 630 The Department has a total adjusted budget of R 53 615 billion. To date of reporting the department has spent R27 1995 billion or 51% of the allocated budget.

Expenditure per Economic Classification Original Budget Virements and Additional funding Adjusted budget Cashflow projection Expenditure Available Under / (Over) spent % Spent   R'000 R'000     R'000 Compensation of Employees 378 606 11 200 389 806 180 594 188 716 201 090 (8 122) 48% Goods and Services 682 835 (3 571) 679 264 319 664 376 567 302 697 (56 903) 55% Transfers & Subsidies 52 291 723 248 567 52 540 290 26 729 599 26 624 166 25 916 124 105 433 51% Machinery and Equipment 4 133 1 584 5 717 2 522 5 256 461 (2 734) 92% Payment for financial assets - 44 (44) 0% Total Department 53 357 297 257 780 53 615 077 27 232 379 27 194 749 26 420 328 37 630 Compensation of Employees: Overspent due to salary increase, an amount of R11.2 million has been allocated to cover the shortfall which was lower than what the Department required. The National Treasury has requested the Department to stop the filling of vacancies. Goods and Services: Overspending due to the cost of maintaining and operating the eNatis, state funerals and AU conference. Transfers and Subsidies: Underspent due to slow spending in the Taxi Recapitalisation project, however a journal of an amount of R52 million has been processed and the expenditure will reflect in the October report. Machinery and Equipment: Reclassification of operating leases due to modified cash standards, funds will be shifted from goods and services to cover the overspending. NOTE: Cashflow projections has not yet been revised for adjusted budget It will be revised after adjusted appropriation bill.

Expenditure per Economic Classification: Programme 1 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent   R'000 Compensation of Employees 170 812 5 000 175 812 78 487 87 848 87 964 (9 361) 50% Goods and Services 197 777 (3 647) 194 130 91 640 100 015 94 115 (8 375) 52% Transfers & Subsidies 12 490 (1 853) 10 637 3 762 3 998 6 639 (236) 38% Machinery and Equipment 2 378 500 2 878 1 638 3 353 (475) (1 715) 117% Payment for financial assets 8 (8) 0% Total 383 457 - 175 527 195 222 188 235 (19 695) 51% Compensation of Employees: Overspent due to salary increase. Goods and Services: Overspent due to the transport costs for the state funerals, AU conference. Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Expenditure per Economic Classification: Programme 2 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent   R'000 Compensation of Employees 39 780 2 700 42 480 19 893 21 443 21 037 (1 550) 50% Goods and Services 40 591 4 366 44 957 20 444 13 196 31 761 7 248 29% Transfers & Subsidies - 9 (9) 0% Machinery and Equipment 212 434 646 120 557 89 (437) 86% Payment for financial assets 23 (23) Total 80 583 7 500 88 083 40 457 35 228 52 855 5 229 44% Compensation of Employees: Overspent due to salary increase . Goods and Services: Underspent due to the delay of invoices on the following projects: White paper on National Transport Policy, NATMAP, Transport Policy Framework, National Transport Planning Databank and Single Transport Economic Regulator. Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending

Expenditure per Economic Classification: Programme 3 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent R'000 Compensation of Employees 20 187 500 20 687 10 094 9 981 10 706 113 48% Goods and Services 15 751 (650) 15 101 7 921 2 727 12 374 5 194 18% Transfers & Subsidies 18 275 426 150 18 275 576 10 947 855 10 947 887 7 327 689 (32) 60% Machinery and Equipment -   149 (149) 0% Payment for financial assets Total 18 311 364 10 965 870 10 960 744 7 350 620 5 126 Goods and Services: Underspent due to the delayed invoices on the following projects: National Rail Policy Green Paper and the draft National Railway amendment bill. Machinery and Equipment:Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Expenditure per Economic Classification: Programme 4 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent R'000 Compensation of Employees 50 284 - 24 134 21 971 28 313 2 163 44% Goods and Services 48 416 23 822 143 588 (95 172) (119 766) 297% Transfers & Subsidies 22 685 586 257 780 22 943 366 11 923 993 11 924 132 11 019 234 (139) 52% Machinery and Equipment 631 336 416 215 (80) 66% Payment for financial assets   11 (11) 0% Total 22 784 917 23 042 697 11 972 285 12 090 118 10 952 579 (117 833) 53% Compensation of Employees:Underspent as a result of vacancies. Goods and Services: Overspent due to the cost of maintaining and operating eNatis as a result of a court order. Transfers and Subsidies: Overspent due to leave gratuities Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Expenditure per Economic Classification: Programme 5 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent R'000 Compensation of Employees 34 854 - 16 649 16 093 18 761 556 46% Goods and Services 75 653 (140) 75 513 39 566 29 297 46 216 10 269 39% Transfers & Subsidies 38 599 140 38 739 24 775 25 133 13 606 (358) 65% Machinery and Equipment 420   210 382 38 (172) 91% Total 149 526 81 200 70 905 78 621 10 295 47% Compensation of Employees: Underspent as a result of vacancies. Goods and Services: Underspent due to the delayed invoices: National Airport Development plan, Telkom watch keeping services. Transfers and Subsidies: Overspent due to once off payments of foreign membership fees. Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Expenditure per Economic Classification: Programme 6 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent R'000 Compensation of Employees 21 728   10 865 9 232 12 496 1 633 42% Goods and Services 69 709 34 934 27 266 42 443 7 668 39% Transfers & Subsidies 19 317 10 000 29 317 9 236 9 171 20 146 65 31% Machinery and Equipment 335 168 264 71 (96) 79% Total 111 089 121 089 55 203 45 933 75 156 9 270 41% Compensation of Employees: Underspent as a result of vacant posts. Goods and Services: Underspent due to the delays in the appointment of the services providers on the following projects: The White Paper on the Maritime Transport Policy, Cabotage Strategy, Review of the Merchant Shipping African Maritime Charter and Feasibility study on the TUG boat services. Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Expenditure per Economic Classification: Programme 7 Original Budget Virements and Additional funding Adjusted budget Cashflow projection 2nd quarter Expenditure Available Under / (Over) spent % Spent R'000 Compensation of Employees 40 961 3 000 43 961 20 472 22 149 21 812 (1 677) 50% Goods and Services 234 938 (3 500) 231 438 101 337 60 363 171 075 40 974 26% Transfers & Subsidies 11 260 305 (17 500) 11 242 805 3 819 978 3 713 838 7 528 967 106 140 33% Machinery and Equipment 157 500 657 50 248 409 (198) 38% Payment for financial assets -   2 (2) 0% Total 11 536 361 11 518 861 3 941 837 3 796 600 7 722 261 145 237 Compensation of Employees: Overspent due to salary increase. Goods and Services: Underspent due to the following projects: Implementation of the IPTN in district municipalities and taxi review model. Transfers and Subsidies: Underspent due to slow spending on the Taxi Recapitalisation programme. Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

Transfer Payments Transfer Payments (R'000) Adjusted budget Expenditure Available % Spent Conditional Grants:   Provincial Roads Maintenance 9 807 435 5 449 001 4 358 434 56% Public Transport Operations 4 939 448 2 133 260 2 806 188 43% Public Transport Network 5 953 090 1 511 718 4 441 372 25% Rural Road Asset Management 96 842 100% Public Corporations: Passenger Rail Agency of South Africa (PRASA) 18 222 047 10 894 474 7 327 573 60% Departmental Agencies & Accounts: S.A. National Roads Agency 12 843 488 6 280 384 6 563 104 49% Road Traffic Management Corporation 184 104 92 052 50% Railway Safety Regulator 53 379 S.A. Civil Aviation Authority 20 124 10 062 Ports Regulator of South Africa 27 627 8 814 18 813 32% Road Traffic Infringements Agency 11 497 5 749 5 748 Maritime Rescue Co-ordination Centre 7 205 3 603 3 602 Transport SETA 1036 1 036 0% Total 52 167 322 26 539 338 25 627 984 51%

Transfer Payments Transfer Payments (R'000) Adjusted budget Expenditure Available % Spent Other:   Taxi scrapping 331 013 52 360 278 653 16% Non Profit Institutions 2 415 2 335 80 97% South African National Taxi Council 19 254 16 500 2 754 86% Higher Education Institutions(Bursaries to non-employees) 9 433 3 910 5 523 41% International Organisations 10 685 9 194 1 491 Leave pay and donations 168 529 (361) 315% Sub-total 372 968 84 828 288 140 23% Total 52 540 290 26 624 166 25 916 124 51%

Provincial Road Maintenance Grant Original budget Adjustments Adjusted budget Transfer Spent by Province Variance % R'000 % Eastern Cape 1 289 151 (41 104) 1 248 047 733 567 376 887 57% Free State 1 142 796 589 949 567 654 52% Gauteng 455 821 (10) 455 811 228 530 133 942 50% KwaZulu-Natal 1 779 255   961 087 494 867 54% Limpopo 994 762 574 740 224 498 58% Mpumalanga 1 719 418 (1) 1 719 417 961 943 604 911 56% North West 788 060 398 655 293 232 51% Northern Cape 822 430 (2 105) 820 325 471 054 109 727 Western Cape 858 962 529 476 322 006 62% Overall Total 9 850 655 (43 220) 9 807 435 5 449 001 3 127 724 55% The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

PUBLIC TRANSPORT OPERATIONS GRANT PUBLIC TRANSPORT OPERATIONS GRANT Original budget Transfer Spent by Province Variance %   R'000 % Eastern Cape 199 595 90 725 71 333 45% Free State 220 669 93 520 70 624 42% Gauteng 1 860 049 803 155 605 859 43% KwaZulu-Natal 924 766 403 315 379 777 44% Limpopo 298 298 122 599 95 394 41% Mpumalanga 502 271 215 149 170 265 North West 92 313 18 550 27 561 20% Northern Cape 44 907 39 248 16 702 87% Western Cape 796 580 346 999 262 921 Total 4 939 448 2 133 260 1 700 436 The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

PUBLIC TRANSPORT NETWORK GRANT   Budget Transfer Spent by Municipality Variance % R'000 % EC: Buffalo City EC: Nelson Mandela Bay 372 256 93 064 921 25% FS: Mangaung 0% GT: City of Tshwane 931 609 232902 43380 GT: Ekurhuleni 339 296 100 000 6 333 29% GT: City of Johannesburg 1 151 368 287 842 16 138 KZN: Msunduzi 213 271 30 000 605 14% KZN: eThekwini 882 168 220 542 143 467 LP: Polokwane 184 189 46 047 MP: Mbombela 116 540 24 945 1 555 21% NW: Rusternburg 552 567 150 000 80 150 27% WC: George 116 325 53 000 5 358 46% WC:City of Cape Town 1 093 501 273 376 76 941 Overall Total 5 953 090 1 511 718 374 848 The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

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