Cross-Border Road Transport Agency 1 Cross-Border Road Transport Agency Budget presentation 16 March 2006 SINETHEMBA MNGQIBISA

Outline of presentation 2 Outline of presentation Mandate Status quo report Service delivery strategy Financial sustainability Budget 2006/07 Way Forward

3 Mandate   * To improve the flow of road and freight and passenger transport in the region. * To liberalise market access and to introduce regulated competition in respect of cross-border road transport industry. * To reduce operational constraints for the cross-border road transport industry. * To enforce the law in cross-border road transport industry in terms of safety, security, reliability and quality. * Provision of training and development of SMME’s in the cross-border road transport industry.

4 Status Quo Strategic direction of the organisation not aligned to mandate Provincial co-operation on issuing of permits Interpretation of law of jurisdiction between provinces and CBRTA Organisational structure not aligned to mandate Human resource capacity limited Board and CEO Management Revenue less than expenses Manual Support Systems and processes Lack of financial reporting to parliament Annual report non-compliance

Service delivery strategy 5 Service delivery strategy Continuous improvement of our safety and economic regulatory environment in the region Become a performance based service provider Maintain long term financial sustainability Improve internal controls Improve facilitation and co-operation between provinces, region and other agencies Anti-corruption strategy Implement a Human resource strategy (reduce percentage personnel/income ratio)

Financial sustainability Budget 2006/07 with Government Grant Item Budget ‘000 Forecast 06/07 07/08 08/09 Income 35,100 33,838 36,750 41,300 Permit fees 25,200 26,000 30,000 Penalty income 6,000 4,738 6,200 6,500 Other income 3,900 4,550 4,800 Expenditure (34,972) (35,772) (36,731) (38,341) Revenue lost (fraud/Provinces issuing permits) (20,000) (14,000) (7,000) Operations (10,919) (10,776) (11,355) (11,696) Salaries (24,053) (24,996) (25,376) (26,645)

Financial sustainability Budget 2006/07 without Government Grant Item Budget Forecast 06/07 07/08 08/09 Income 31,600 30,338 32,750 36,800 Permit fees 25,200 26,000 30,000 Penalty income 6,000 4,738 6,200 6,500 Other income 400 550 300 Expenditure (34,992) (35,772) (36,731) (38,341) Revenue lost (fraud/Provinces) (20,000) (14,000) (7,000) Operations (10,919) (10,776) (11,355) (11,696) Salaries (24,053) (24,996) (25,376) (26,645)

Financial sustainability 8 Financial sustainability Statistics Item Budget Forecast 06/07 Percentage increase/decrease Income 35,100 33,838 4% Permit fees 25,200 0% Penalty income 6,000 4,738 21% Other income 3,900 Expenditure (34,972) (35,772) 2% Revenue lost (fraud) (20,000) (14,000) 30% Labour cost (24,053) (24,996) Operational expenses (10,919) (10,776) 1% Depreciation (504)

Financial sustainability 9 Financial sustainability Cash Flow 06/07 Item Budget Forecast 06/07 07/08 08/09 Income 35,100 33,838 36,750 41,300 Permit fees 25,200 26,000 30,000 Penalty income 6,000 4,738 6,200 6,500 Other income 3,900 4,550 4,800 Expenditure (34,972) (35,772) (36,731) (38,341) Labour cost (24,053) (24,996) (25,376) (26,645) Operational expenses (10,919) (10,776) (11,355) (11,696) Depreciation (504) (480) (456)

Way Forward 10 Key strategic interventions Short term Long term Financial stability 31 March 2009 Provincial co-operation 31 March 2006 Electronic processes 31 March 2007 Human resource strategy Fraud prevention strategy 30 May 2006 Internal controls

11 Thank you Questions !