SADPMR STRATEGIC PLAN FOR 2012 TO 2013 PPC – 23 May 2012

PRESENTATION OUTLINE Relevant service delivery outcomes; Vision and Mission SADPMR Strategic objectives SADPMR Strategic objectives linked to DMR and national outcomes SADPMR MTEF Plan Detailed Annual plan for the 2011/2012 Budget allocation for SADPMR Remarks/Challenges Developments within the Regulator Conclusion

RELEVANT OUTCOMES TO SADPMR Outcome 4: Decent employment through inclusive economic growth Output: To critically review our support for cooperatives & small businesses and to develop a clear plan to improve our performance in this regard Outcome 7: Vibrant, equitable, sustainable rural communities with food security for all Output: Rural job creation, skills training and promoting economic livelihoods Outcome 11: Create a better South Africa and contribute to a better and safer Africa - Output: Enhanced trade and investment and regional integration Outcome 12: An efficient, effective and development orientated Public Service and empowered, fair and inclusive citizenship - Output: Human Resource management and development - Output: Business processes, systems and decision rights and accountability - Output: Tackling corruption

VISION & MISSION VISION Regulating for business excellence, transformation and economic empowerment MISSION Render regulatory services by ensuring: compliance with legislation; skills transfer; business development support; equitable access to resources ; and local beneficiation. VALUES Integrity Respect Time management Accuracy Consistency

SADPMR: Strategic objectives To ensure competitiveness, sustainable development and job creation in the diamond and precious metals industry; To ensure effective transformation of the diamond and precious metals sectors; To ensure equitable access to resources for local beneficiation; To ensure compliance with the legislative requirements; To improve organizational capacity for maximum execution for excellence; and Ensure the promotion of corporate governance.

National OutcomeDMR ProgrammeSADPMR Strategic objective Decent employment through inclusive economic growth Programme 3: Mineral Regulation Ensure competitiveness, sustainable growth and job creation in the diamond and precious metals industries Create a better South Africa and contribute to a better and safer Africa Programme 4: Mineral policy and promotion  Ensure equitable access to resources for local beneficiation Effective, efficient and development orientated public service Programme 1: Administration  Improve organizational capacity for maximum execution of brilliance  Ensure the promotion of corporate governance Programme 3: Mineral Regulation (implement transformation policies/ legislation)  Ensure effective transformation of the diamond and precious metals sectors SADPMR Mandate  Ensure compliance with the legislative requirements Vibrant, equitable, sustainable rural communities with food security for all Programme 3: Mineral Regulation _______ SADPMR STRATEGIC OBJECTIVES LINKED TO DMR AND NATIONAL OUTCOMES 6

MTEF PLAN OF THE SADPMR 2012/ 2015

SADPMR MTEF PLAN STRATEGIC OBJECTIVE MEASURES 2012/32013/42014/5INITIATIVESEXPECTED OUTCOME Ensure competitivene ss, sustainable development and job creation in the diamond and precious metals industries Number of jobs created. Number of Skills initiatives facilitated and developed for the industries Implement Broad based socio- economic empowerment Charter and Beneficiation Strategy Implement PPPFA prescripts Establish skills development initiatives for the industries Job creation, skills development and Value addition to precious metals and diamonds Ensure compliance with legislative requirements Adherence to applicable legislation 100% complianc e to legislation Monitoring the implementation of Diamonds and Precious Metals legislation and any other applicable legislation Job creation, skills development and Value addition to precious metals and diamonds Ensure effective transformation of the diamonds and precious metals sectors Number of new and existing HDI’s in diamond and precious metals sectors Implement the Broad based socio- economic empowerment Charter Transformed diamond and precious metals industries Ensure equitable access to resources for local beneficiation Increased trade for local beneficiators Increased participation by local beneficiators Implement the Diamond legislation and Beneficiation strategy Enhanced local beneficiation and trade

SADPMR MTEF PLAN STRATEGIC OBJECTIVE MEASURES 2012/32013/42014/5INITIATIVESEXPECTED OUTCOME Improve organizational capacity for maximum execution of excellence Sound administrative systems and processes in place Developme nt of systems and processes Implementa tion Develop and implement sound administrative systems and processes An effective, efficient and development orientated Regulator Ensure the promotion of corporate governance Reduction in repeat audit findings (External and internal) 654 Implement legislations applicable to SADPMR. Enhanced /strengthen corporate governance PFMA and Companies Act compliance. 100% Implement compliance with the PFMA & TR Checklist Enhanced /strengthen corporate governance Fraud prevention and risk management implemented 100% Implement and monitor agreed mitigation/action plans. Enhanced /strengthen corporate governance

SADPMR STRATEGIC PLAN 2012/ 2013

Support Services STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Improve organizational capacity for maximum execution of excellence Develop and implement a Human Resource (HR) Plan Approved and implemented Human Resource (HR) Plan Impleme nted HR Plan Effective Performance management and development system HRD policy and strategy Promote sound employer- employee relations Review, develop and implement HR policies and practices Develop and implement Talent Management system Implement OD practices SADPMR to be employer of choice Better attraction and retention of skills within the Regulator Improved services through skilled employees Communicate the SADPMR policies and programmes amongst internal and external stakeholders Develop and impleme nt policies Increase internal and external stakeholder relationship Increase brand awareness Cultivate positive organizational culture Monitor and engage Media Participate and influence international engagements on Kimberley Process and related matters Branding of the SADPMR Fostered relations between diamond and precious metals industries and SADPMR Strategic role of SA in Kimberley Process matters

SUPPORT SERVICES STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Develop and Implement Master System Plan (MSP) Approved and Implemente d Master System Plan (MSP Implement ed MSP Plan Develop and implement MSP for the Regulator ICT infrastructure implemented Implemented Data Recovery Plan Business applications implemented SLAs developed and implemented State of the art technology for Regulator to service local and international clients Ensure the implementation of MISS, MPSS and OHSA Number of approved compliance standards and guidelines Three(3) standards implement ed Develop and implement investigation Guidelines Develop and implement Contingency Plan Develop and implement Security breaches register Secured premises compliant to all legislative requirements Ensure the implementation of national vetting strategy Number of security clearance certificates issued Twenty employees vetted Implementation of National vetting strategy Identify critical post List post as per risk Protocol Issue z204 and forward to SSA Security competency of all employees (ethics, integrity, sound financial management)

SUPPORT SERVICES STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure the implementatio n of transport management policies and practices Approved and implemented policy and procedures Approved policy Impleme nted policy Implement transport policy and directives Effective and optimum utilisation of state assets (prioritization of inspections in the diamond and precious metals industries) Ensure competitivene ss, sustainable development and job creation in the diamond and precious metals industries Facilitate the recruitment of interns and learners within the Regulator Facilitate skills development initiatives for the industries Number of interns and learners appointed Number of skills initiatives facilitated and developed for the industries 5555 Recruitment of Learners and Interns Skills development initiatives; Training on Rough diamond valuation skills Training on Polished diamond grading skills Training on KPCS administering skills Training on Diamond’s processing of imports and exports Training on Precious metals’ processing of imports and exports Contribution to job creation and imparting of practical experience Improved and skilled employees who can render professional services

OFFICE OF THE CHIEF FINANCIAL OFFICER STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME To ensure compliance with legislative requirements  Correct the identified deficiencies from the audit report(s)  Develop and review policies/ procedures and guidelines Reduction in repeat audit findings (External and internal) Policies developed and reviewed 5656 Implement relevant and applicable legislations Develop following policies: Losses management, Asset Disposal, Petty cash management, Supply Chain Management, Cell phone Delegations of authority Clean audit by AG and internal auditor Compliance to legislations Ensure the promotion of corporate governance  Develop and implement supply chain processes  Implement Preferential procurement regulation Compliance with PFMA and PPPFA. 100% compliance Implement and facilitate compliance with PFMA and Treasury Regulation checklist Compliance to legislations

OFFICE OF THE CHIEF FINANCIAL OFFICER STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure competitivenes s, sustainable development and job creation in the diamond and precious metals industries Increase participation in provision of goods and services by BEE owned companies Number of BEE owned companies awarded bids 10Implement database for bids awarded to BEE owned companies Contribute to job creation

DIAMONDS AND PRECIOUS METALS STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure competitivenes s, sustainable development and job creation in the diamond and precious metals industries Promote entrepreneurial development Facilitate skills development initiatives for the industries Number of new businesses facilitated Number of skills initiatives facilitated and developed for the industries 10 5 Implementation of the Broad Based socio-Economic Empowerment Charter Skills development initiatives; Provide training on GDV planning machines; Facilitate training in Jewellery making skills Facilitate training in Diamond cutting and polishing Facilitate training in Precious metals beneficiation skills Contribute to job creation Skills development Employment Equity Contribute to skills development within the diamond and precious metals industries

DIAMONDS AND PRECIOUS METALS STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure equitable access to resources for local beneficiation Oversee the development and implementation of the diamond marketing strategy of the DEEC Oversee diamond exchange and exports for the Regulator  Number of clients base from both local and international arena  Number of polished diamonds trade transactions by small businesses  Increased trade for local beneficiators Implementation of Beneficiation Strategy Marketing of polished diamonds to local and international trade Promote local beneficiation by allocating certain viewing rooms to beneficiators Compete with international counterparts on the trade of diamonds Promote SMMEs dealing with polished diamonds Promote and boost local beneficiation

DIAMONDS AND PRECIOUS METALS STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure compliance with legislative requirements Oversee the provision of diamond valuation services Number of valuations conducted at fair market value 100% of diamonds offered/ presented Implement the Diamonds Act and related legislation All diamond parcels to be of fair market Improve organizational capacity for maximum execution of excellence Oversee the compilation of the monthly Diamond price book Updated Diamond price book 12 Monitoring trends in international and local diamond prices Accessible Diamond price book Ensure compliance with legislative requirements Oversee the provision of inspection services within the diamond and precious metals sectors Oversee the administration of KPCS and related matter Increased inspection services rendered Compliance to KPCS and relevant legislation % compliance Implement the Diamond and precious metals legislation Implement KPCS statutes and related legislation Compliance to Diamond Act and Precious Metals Act Compliance to KPCS requirements

LEGAL & COMPLIANCE STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure effective transformation of the diamond and precious metals sectors Process and issue licenses in line with the BBSEEC Number of application s granted 500 Implement the BBEEC  Licenses, certificates and permits Contribute to job creation Transformed industry Ensure compliance with legislative requirements Oversee the provision of the compliance inspection/audits on licensees Provision of compliance inspection/ audits implement ed 450 Implement the Diamond Act  Assess ownership (HDSA)  Skills development Transformation in the diamond industry Oversee the provision of legal support to the Regulator Legal guidance provided to the Regulator 100%  Provide researched legal opinions and advice on diamonds and precious metals related matters  Implement PAJA and PAIA Minimised litigations against the Regulator Promote Access to information

LEGAL & COMPLIANCE STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure competitivene ss, sustainable development and job creation in the diamond and precious metals industries Oversee the provision of issuing of beneficiation licenses Facilitate skills development initiatives for the industries Number of beneficiati on licenses issued Number of skills initiatives facilitated and developed for the industries 500 Implement the Diamond Act Beneficiation licenses (diamonds and precious metals) Skills development initiatives; Facilitate the development of diamond’s core and portable skills Facilitate the development of precious metal’s core and portable skills Promotion of local beneficiation Contribute to skills development in the diamond and precious metals industries

CORPORATE GOVERNANCE AND INTERNAL AUDIT STRATEGIC OBJECTIVE KEY ACTIVITIESMEASURES ANNUAL TARGET INITIATIVESEXPECTED OUTCOME Ensure the promotion of corporate governance Ensure the implementation of the Companies Act and King Code III for the Regulator. % compliance to Companies Act and King Code III 80% Implement the Companies Act and King Code III Good corporate governance Implement Fraud prevention and risk management strategy and plan. Number of workshops on fraud prevention Reviewed and update risk manageme nt register Implement Fraud prevention strategy Implement risk management strategy Increased awareness within the organization Better mitigation/ prevention of certain risks within the organization Ensure compliance with legislative requirements Conduct follow up on audit findings and ensure implementation of corrective measures Reduction in repeat audit findings 6 Implement the audit charter and plan Good corporate governance Assess and monitor implementation of risk mitigation and action plan. Number of audit conducted 10Implement the audit charter and plan Good corporate governance

BUDGET vs ALLOCATION FOR SADPMR ORGANIZATIONFINANCIAL YEAR – 2012/13 FINANCIAL YEAR – 2013/14 FINANCIAL YEAR – 2014/15 BudgetR 65,521 millionR65,959 millionR69,917 million AllocationR40,990 millionR43,321 millionR45,791 million

REMARKS/ CHALLENGES Shrinking budget allocation; Declining/ shrinking diamond industry; Complexities with regards to the beneficiation of precious metals; Lack of access of rough diamonds by beneficiators;

REMARKS/ DEVELOPMENTS SADPMR implementing service charges in line with legislation; Increased trade transactions (unpolished and polished diamonds) at the Diamond Export and Exchange Centre; Decreased litigations against the Regulator; and Strengthened relations between the Regulator and the diamond and precious metals industries.

Conclusion In conclusion, it is important to report that the SADPMR Board has established a special transformation team through the Licensing Committee to develop special strategic mechanisms as an intervention to address those areas that there has been little or no achievements in terms of the Regulator’s strategic objectives as informed by key national priorities. The following are some of the areas that the plan seek to address; Job creation Access to rough diamonds Marketing of polished diamonds (trading floor for SMMEs) Skills development The Regulator has commenced with the implementation of the plan by engaging diamond producers to avail rough diamonds for local beneficiators, as well as the consideration of establishing a trading floor for polished diamonds.

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