1. SIYAKHA TRANSFORMATION PROGRAM

2. Siyakha In 2000 SARS, undertook comprehensive diagnosis of the state of the organisation revealed that there was substantial scope for improvement. In order to improve SARS performance, Siyakha program involved introduction of Standardised business processes benefits of economies of scale overall management changes, teaming,and the development of staff achieving employment equity objectives embedding of a service culture. and, fundamental organisational redesign and new Infrastructure establishing a platform for technology enablement. And a number of projects to improve business performance

3. Siyakha: Progress Standardised business processes rolled-out in KZN and WC. This process has started in Gauteng This platform has enabled us to indentify further process improvements which are being implemented Concentration of assessment activities have resulted in improved turnaround times More than 3000 staff have been trained in service and functional expertise Employment Equity has been improved To date the working environment of more than 20 SARS locations have been improved. This includes Excise, Revenue and Customs

4. Siyakha: Activities 04/05 Implementation of the following at Megawatt Park Enforcement Centre, outbound Call Centre, SARS Academy, Central Enforcement Unit, Tax Court & SARS Corporates Office Continue with the development of the Gauteng South & North Campus facility for assessment and enforcement centres Implement new processes in Branch offices in Gauteng

5. Specific Projects / Areas for 2004 Cargo Scanners Customs Transformation incl. Customs Act Rewrite Customs Permit Certificate Control Industrial Development Zone (IDZ) MAS Passenger Processing System SARS Corporate Office WCO Harmonised System Data Base Restructuring Excise Financial system (Kopano) Phase 1 National Facilities Management SADC TransKalahari Corridor & One Stop Borders Advance Rulings

6. New Transformation program (Siyakha phase 2) Transforming technology Improved operational effectiveness Transforming skills, infrastructure and processes Transforming people and culture Long term transformation and product innovation

7. RISK MANAGEMENT

8. Risk Management SARS has set up a Risk Management Unit to: Develop a comprehensive risk assessment of SARS Create a Business intelligence and analysis capability New Data mining capability and risk profiling tools Develop a single revenue / compliance risk rating mechanism develop a methodology to re-designing tax and customs processes with the view to reducing risk

9. Risk Management: Achievements Business Intelligence Unit provided SARS with a National Industry Risk Assessment that provides strategic/operational guidance Contributed to revenue collection through identifying high risk cases for investigation Conducted internal corruption investigations that resulted in disciplining and dismissal of SARS employees. Successfully apprehended perpetrators who attempted burglaries and theft at various SARS offices.

10. Risk Management: KPA’s 1. To develop and maintain a risk management strategy 2. To establish a business intelligence unit 3. To establish an ethics office to promote high levels of employee integrity 4. To ensure the physical security of all SARS people and assets.

11. PEOPLE

12. HR: Achievements Significant employment equity gains have been made at all levels of the organisation. By March 2004, the representation of blacks in the organisation stood at 53% and approaches 50% at management and supervisory level. Special programmes have been in place to fast track the development of tax and Customs officers from black communities. New opportunities are also being created in the call centres and in special projects. A SARS Academy has been established to develop both South African and Southern African tax and Customs administrators, managers, and leaders.

13. HR: Systems and Basic Training Total April ’03 - March ‘04 Systems 2349 VAT3060 Income Tax4200 Customs 816 Assessment/TPS2179 Enforcement2079

14. Female Male 2726 2272 725 454 448353 4537 1585 Female AfricanColouredIndianWhite Employment Equity - April 2004

15. HR: KPAs To develop, implement and maintain an integrated, progressive, innovative Human Resources strategy To build and maintain a high performance, diverse, learning organization To ensure compliance with spirit and letter of labour legislation To increase efficiency of HR function to provide a high quality service to all areas of business and to all staff To build productive relationships with and show caring for employees To ensure high quality relationships with ALL stakeholders – unions, staff and management