Corporate & Business Plan 2012/13 Financial Year Presentation to Portfolio Committee on Communications, March 2012

Introducing the Team 1.Themba Phiri [ Executive Caretaker] 2.Sam Vilakazi [ Executive Caretaker] 3.Winile Lamani [ Acting Exec: BDS Division] 4.Linda Ngcwembe [ Acting CFO ] 5.Vusi Zoko [ SM: Legal Services] 2

Presentation Overview  State of the Organization since our last appearance to the Committee  Considerations of the current strategic and business plans –Previous AG Findings –Previous comments by PPC –Comments received during oversight visits –Minister’s Delivery Agreements –Alignment with the DoC and other SoE’s plans  Key Projects  Spending plans  What will USAASA do differently [ Short term & Future] 3

Governance & Status Quo Since Last Appearance  Non Executive Board Members – Released from duty  Technical Advisor resigned with effect from: 08 Nov  Executive Caretakers appointed in November 2011  Forensic Investigations completed in December 2012 Value for money audit is currently being conducted on Projects that were awarded to various Service Providers CFO -Disciplinary hearing in progress Exec: BDS -Disciplinary hearing in progress Exec: Perf - Disciplinary hearing in progress SM: SCM -Disciplinary hearing in progress SM: ICT -Precautionary Suspension NB. a) Acting appointments on key positions b) There will be huge under spending due to the fact internal control measures had to be put in place. 4

Considerations of Business Plan Previous AG Findings Measurable objectives and indicators – Received help from DoC and AG to ensure SMART indicators in current business plan Strategic planning not held – Strategy session was held which resulted in the current strategic plan document Asset reconciliation not in place – A process of appointing a service provider to fully complete the asset verification is underway Irregular expenditure – Tender Committees ( Specification, Evaluation and Adjudication) have been appointed to ensure proper SCM processes are followed Fruitless & wasteful expenditure [ RE: Capped leave] – Person who authorised no longer with USAASA : Condonement will be sought 5

Previous comments by the Portfolio Committee members 6 Whether USAASA has the necessary skills  - Skills Audit is underway Why there are more managers than operational personnel  The process of USAASA’s repositioning and operational structural review will address this Whether USAASA can function in its current state and structure  The last slide deals with repositioning of USAASA Why is USAASA not working closely with MDDA and deploy computer centres where there are community radio stations?  Repositioning process will clearly indicate the relationship between a new USAASA and the MDDA How far is the partnership of USAASA and SAPO regarding delivery of USAASA projects  Partnership has been initiated to first focus on STB subsidies and further projects will be included in the MoU

Strategic Context Department of Communications ICT Public Sector ICT Private Sector ICASA International Partnerships USAASAUSAASA 7

Key USAF Projects for 2012/13 … Minister’s Performance Agreement & Associated delivery agreements Outcome 4 Decent employment through inclusive growth Outcome 4 Decent employment through inclusive growth Output 6 Improved support to small business and cooperatives Output 6 Improved support to small business and cooperatives Job creation initiatives through SMMEs and Entrepreneurship initiatives Deploy 100 community access centres through an entrepreneurship model Convert existing ICT centres to e- hubs Train 200 centre personnel on e- skilling Deploy 100 community access centres through an entrepreneurship model Convert existing ICT centres to e- hubs Train 200 centre personnel on e- skilling BudgetUSAASA Plan DoC Plan Minister’s Performance Outputs R12.4M USAF 8

Context of Business Plan Minister’s Performance Agreement & Associated delivery agreements Outcome 1 Improved quality of basic education Outcome 1 Improved quality of basic education Output 1 Improve the quality of teaching & learning Output 1 Improve the quality of teaching & learning Connect schools to broadband infrastructure Promote ICTs in teaching & learning through E-skilling Connect schools to broadband infrastructure Promote ICTs in teaching & learning through E-skilling Connect 18 FET Colleges Connect 200 Schools on internet Connect 18 FET Colleges Connect 200 Schools on internet Budget USAASA Plan DoC Plan Minister’s Performance Outputs R9 M USAF R9 M USAF 9

Context of Business Plan… Minister’s Performance Agreement & Associated delivery agreements Outcome 6 An efficient, competitive and responsive economic infrastructure network Outcome 6 An efficient, competitive and responsive economic infrastructure network Output 5 Information and Communication Output 5 Information and Communication Increase Broadband penetration in South Africa Facilitate DTT infrastructure rollout Increase Broadband penetration in South Africa Facilitate DTT infrastructure rollout 2 Underserviced Municipalities connected with Broadband infrastructure through B/B I/G Impl. Comm Subsidize 469, 387 STB’s 2 Underserviced Municipalities connected with Broadband infrastructure through B/B I/G Impl. Comm Subsidize 469, 387 STB’s Budget USAASA PlanDoC Plan Minister’s Performance Outputs R16,885 M USAF R16,885 M USAF R230 M USAF R230 M USAF 10

Context of Business Plan… Minister’s Performance Agreement & Associated delivery agreements Outcome 6 Vibrant,equitable & sustainable rural communities & food security for all Outcome 6 Vibrant,equitable & sustainable rural communities & food security for all Output 3 Rural services & sustainable livelihoods Output 3 Rural services & sustainable livelihoods Finalise the ICT rural development strategy Monitor and evaluate the implementation of the definitions targets quarterly. Publish progress reports. Budget USAASA Plan DoC Plan Minister’s Performance Outputs R2.85 M USAASA 11

Spending Plans on Projects 12 ProjectQ1Q2Q3Q4Comment E- connectivity R3 Million USAF Manual R290, Internal Processes R2,56 Million Rapid Deployment Appoint SPR6,2 Million Future Planning STB SubsidiesPre- applications Pre- Applications R110 MillionR120 Million B/Band subsidies AssessmentsAppoint SPR16,885 MProject review

USAF: Key Projects and Budget Summary 2012/132013/142014/15 Revenue 000 Department of Communication Total revenue Expenses Audit costs Bank Charges Project Costs Projects Strategy document and USAF Manual E-connectivity Rapid Deployment STB subsidies Broadband infrastructure Total expenses

USAASA: Budget Summary 2012/132013/142014/15 Revenue Other income Executive Authority (Type in Department name e.g. Home Affairs) Total revenue Expenses Salary & Wages Social Contributions (employer contributions only) Administrative fees Advertising Agency and support / outsourced services Assets less than R Audit costs Bank Charges Board Costs Bursaries (employees)

USAASA Budget… 2012/132013/142014/15 Expenses contd… Catering: internal activities Communication Computer services Consultants Contractors Entertainment Inventory Lease payments Legal fees Non life insurance Printing and Publication Repairs and maintenance Research and development Training and staff development

USAASA Budget… 2012/132013/142014/15 Expenses contd… Travel and subsistence Venues and facilities Other expenditure Sundries Organisational Development Subscriptions Marketing costs Employee wellness Interest Total expenses Capex Total Budget

High Level MTEF Allocation 17

Social Spin-Offs Anticipated 5000 community members trained in ICT Anticipated 200 jobs (or more) and job opportunities and more created as a result of training Greater employability of general citizenry 18

Repositioning of USAASA

Short Term interventions… Pool of mixed skills to exercise necessary fiduciary duties and efficiencies as per Institute of Directors’ guidelines Full sector skilled executive management compliment Built-in due diligence capacity/mechanisms improved and strengthened across organization [ Tender Committees and necessary delegation ] Clear project-aligned shareholder reporting lines Frequent Ministerial interaction/ bilaterals 20 GOVERNANCE

Short Term interventions 21 OPERATIONS Integration of activities

Medium-Long Term interventions Reposition USAASA into a new entity – Process of conducting a review of USAASA to inform its re-positioning will commence in the beginning of the new financial year. – A process of conducting skills audit has also commenced. – Reports on skills audit and USAASA review will be shared with the Department and Portfolio Committee once completed. 22

THANK YOU ! 23