Report to the Parliamentary Portfolio Committee: Arts and Culture Presenter: Prof. Mbulungeni Madiba Chairperson’s Report (04/08/2015)

Table of Contents 1.Purpose 2.PanSALB’s Mandate 3.Prescribed functions of PanSALB 4.Main challenges 5.Progress Report 6.Way forward 2

3 Purpose of the presentation To give PanSALB’s progress report since the last meeting held in June 2013 with the Parliamentary Portfolio Committee.

4 The Pan South African Language Board was created by the Constitution of the Republic of South Africa Act 108 of In terms of section 6(5) of the said Constitution, it states that a Pan South African Language Board be established by national legislation which must: (a)Promote and create conditions for, the development and use of- (i)all official languages; (ii)the Khoi, Nama and San languages; and (iii)South African Sign language; and (b)Promote and ensure respect for- (i)all languages commonly used by communities in South Africa. PanSALB Mandate

Prescribe functions of PanSALB PanSALB was established as an independent statutory body by an Act of Parliament (Act 59 of 1995) as amended with the following explicit aim (Section 8 of the Act): (a) make recommendations with regard to any proposed or existing legislation, practice or policy dealing directly or indirectly with language matters at any level of government, and with regard to any proposed amendments to or the repeal or replacement of such legislation, practice or policy; 5

(b) make recommendations to organs of state at all levels of government where it considers such action advisable for the adoption of measures aimed at the promotion of multilingualism within the framework of the Constitution; (c) actively promote an awareness of multilingualism as a national resource; 6

(d) actively promote the development of the previously marginalized languages; (e) initiate studies and research aimed at promoting and creating conditions for the development and use of (i) all the official languages of South Africa, (ii) the Khoe and San languages and (iii) South African Sign Language; 7

(f) promote and ensure respect for all other languages commonly used by communities in South Africa; (g) advise on the coordination of language planning in South Africa; (h) facilitate cooperation with language planning agencies outside South Africa; 8

(i) establish provincial language committees and national language bodies to advise it on any language matter affecting a province or a specific language; and (j) establish national lexicography units to operate as companies limited by guarantee under section 21 of the Companies Act (No. 61 of 1973), and to allocate funds to the units for the fulfilment of their functions. 9

Main challenges 1.Vacant executive leadership 2.Underperformance 3.Bloated and unmandated organisational structure 4.Financially-compromised organisation 10

5. Irrelevant Strategic Plan 6. Litigation problems 7. Low staff morale and infighting 11

PROGRESS REPORT 1.Vacant Executive Leadership: CEO & CFO The Board appointed Dr Mpho Monareng as the new CEO of PanSALB The Board requested the new CEO to start the process of appointing the CFO even though it is still working on restructuring The Board will be involved in the selection process as this is a senior position. 12

2. Underperformance The current Acting CEO put measures in place to develop staff critical capabilities and improve performativity The Board has also established committees to assist the organisation with some expertise 13

3. Bloated unmandated orgnaisational structure The Board has disregarded the previous bloated organisational put in place by Mr Zwane It has decided to use the 2012 Organisational structure which was approved by the National treasury while developing a new one which will be learner and suitable for PanSALB mandate. Structure In the meantime, the Board has decided that all senior executive cavant position should not be filled until a new organisational structure is put in place. 14

4. Steps to address financial challenges The organisation still faces financial challenges due financial irregularities and debts incurred in the past. Steps to deal with the problem –Review of the existing contracts and service providers –Forensic Audit –Financial structures –Control systems and measures 15

4.1. Contracts with service providers Payments to a service provider known as Computer Service and Forensic Solutions were cancelled as there was no valid contract between the entity and the Board. An R11 Million contract between the Board and Sithole Mzumbo Consulting was cancelled as there was no budget for the expense amongst other reasons. Outstanding payments to these two entities were frozen as there was no justification of payments. Another entity by the name of Ink and Feather for the development of fund raising strategy was also canned. A contract with Zanenza was also canned although the company is suing the Board for outstanding commission is playing itself out in the North Gauteng High Court. 16

Sithole-Mzumbo Consulting was paid more than R and according to them about R is still owing. Both companies had no contracts entered into with the organization while Sithole Mzumbo was billing the organization monthly for services which were not covered in any contractual agreement. A contract entered into with this company is in respect of a project of establishing a server room for the purposes of hosting the facilities of the organization and this contract was about R11 million and communication was sent to both companies that we will no longer honour payments of the outstanding invoices. The combined figure accumulating for the organization in respect of internet and services amounted to more than R per month. 17

On 30 November 2014, BCX, a company that used to host the organization severed its ties with the organization for non-payment as it is owed about R which was made up of R monthly instalments. As a result thereof, for the month of December 2014, the organization had no internet and connection. A new contract was entered into with Telkom to provide the same services at a reduced cost of about R per month. The service is presently operational. A number of contracts were cancelled due to financial constraints and because they added no value to the organization. 18

4.2 Forensic Investigation Because of the scale and number of financial irregularities and contracts uncovered, the Board, in consultation with DAC requested a forensic investigation from the National Treasury. A preliminary report was forwarded to the ACEO and we are awaiting a final report.. 19

4.3 National Lottery Project The chairperson and the acting CEO held a meeting with the National Lottery Board on 23 February 2015 to discuss the grant given to PanSALB and how it can be prioritised to focus on areas relevant to the Board’s mandate The Neville Alexander Scholarship is going on well, and the other two have been halted. It is hoped that the grant if managed properly by the organisation instead of third parties it will boost the staff morale and capabilities to deliver of the organisation’s mandate 20

4.4 Other measures to improve financial management Appointment of internal auditors(Governance and internal controls) For the financial year 2014/2015, PanSALB was able to advertise and appoint an effective Audit firm (PWC) to perform the internal audit function. These internal auditors managed to produce Internal Charter as required by legislation. Appointment of Audit, Risk and ICT committee(Internal Oversight) For the financial year 2014/2015, PanSALB was able to advertise and appoint an Audit, Risk and ICT Committee as required by legislations. This Committee convened on 7 November 2014 and made some recommendations in a bid to stabilize PanSALB. Risk assessment workshop conducted as per legislations The strategic risk assessment workshop was conducted and the report was submitted to the Board and management. 21

5. Strategic Plan The Board’s responsibility is to provide strategic direction or framework for the development of the Strategic Plan The Board assisted the Management in developing the Strategic Plan Two meetings were also held with the Minister of Arts and Culture to discuss the strategic plan The strategic plan was completed and submitted to the department of Arts and Culture and feedback is still awaited 22

6. Litigation against the Board The Board is currently facing several litagations from some service providers demanding payment for services they claim to have rendered to the Board and also from the affected members whose contracts were disregarded. Despite the fact that communication was sent to service providers informing them of the financial situation of the Board and the queries the Board has with regard to their contracts, some of them have opted to litigate against the Board. 23

Litigation against the Board: the case of affected individuals As all affected individuals refused to recognize and to comply with the Board resolution, they continued to litigate against the Board On 11 December 2014, a Labour Court case challenging the resolution of the Board by the affected individuals was dismissed for lack of urgency. Although the individuals never pursued the matter further, it remains pending before the Labour Court. On 8 May 2015, a similar application was again dismissed for lack of urgency before the labour Court and this application too is pending before the labour Court. 24

The referral involving the 10 of the affected individuals was is ongoing at the CCMA in Pretoria and attempts were made to settle the matter although the affected individuals reneged from that which they agreed on. Update on the progress in the matter will be given once real progress is made. On 30 June 2015, a fresh application was served on the Board in terms of which the individuals seek the Pretoria High Court to force the minister to dissolve the Board as well as nullifying my appointed as the Acting CEO

This matter came before court on 21 July 2015 and the parties are expected to meet with the Deputy Judge President to arrange a date for the hearing of the matter. In this matter both the Minister of Finance and the Minister of Arts and Culture are cited as respondents and are both opposing the matter. An update will be provided when the matter is finally concluded. The Minister of Arts and Culture also requested the Board to get a second legal opinion from the State Attorneys. The Legal opinion is completed and has been sent to the Minister. 26

7. Other achievements The Board under the leadership of Adv Feni has also made several achievements in the last few months 27

7.1 Memorandum of Incorporation The new Companies act requires that the articles of association between the Board and the section 21 companies be changed to memoranda of incorporation. Copies of memoranda of incorporation were sent to the NLUs for consideration and input. There has been no response from the NLUs as yet. Follow up will have to be made in this regard. 28

7.2 Board sub-committees In terms of the Act, the Board has established four sub-committees. 29

7.3. Kader Asmal report Correspondence from the speaker of the national assembly to the effect that the report need to be debated to consider its recommendations. To this effect workshops were planned to allow the four affected institutions an opportunity to make a presentation on their views on their merger as recommended in the report and that these institutions should meet to come up with a common view in the matter as to how best to take the process forward. A meeting which was held between the four institutions 31 July

8. Way forward The new CEO started on 1 July 2015 He has so far taken several initiatives to take the organisation forward He has organised meetings with managers and the staff He has attended the last Board meeting The Board welcomed him and wished him all best as he takes the organisation forward CEO to report on his vision and strategic direction 31

THANK YOU Enkosi Ndaa! 32