1. DIRCO AND ARF PERFORMANCE AND FINANCIAL REPORT QUARTER 4 PRESENTATION TO PORTFOLIO COMMITTEE 03 JUNE 2015

2. Table of Contents 2 1.DIRCO reports on: 1.1Performance information Quarter 4 1.2 Financial report: Quarter 4 2.African Renaissance fund (ARF): Quarter 4

3. 3 Performance Information Quarter 4

4. Programme 1: Administration Forty (40) vacancies filled and (ten)10 of these within the four months turn around time. Thirty (30) could not be filled within four months due to unavailability of panel members and delays in finalizing approvals New Structure of the department was approved following Completion of the Organisational Functional Assessment Continued with its commitment to provide capacity building, provided twenty seven(27) training programmes of which one (1) to international participants Continued to deliver consular services including the legalization of documents Improved the payment of suppliers with an average of 99% of suppliers paid within 30 days Submitted the MPAT self assessment 4 Programmes Final Appropriation ProjectionActualVariance Administration 1,346,779 1,419,569 1,238,370 181,199

5. Programme 2: International Relations (APP) Performance IndicatorAnnual TargetAchieved by end of Q4 Utilise the structured mechanisms (BNCs, JCCs, JNCs and others) to advance national priorities, to strengthen relations, to lobby for support for multilateral engagements and common positions 34 Structured bilateral mechanisms 65 High level visits 29 38 Economic diplomacy to reflect the work that missions undertake in order to increase value added exports; attract Foreign Direct Investment to priority sector (NGP and IPAP);promote tourism; promote the removal of non tariff barriers 155 chamber of commerce 17 government ministries 17 potential investors and importers 122 52 92 5 Programmes Final Appropriation ProjectionActualVariance International Relations 3,122,925 3,047,451 3,122,566 (75,115)

6. Programme 2: International Relations Five structured bilaterals and Eleven high level visits with various countries with outcomes that includes : Commitments to strengthen cooperation with Chile in areas of Trade; Agriculture; Education; science and technology Agreed on trade and investment cooperation, Blue Economy, training programmes for SA officials with Singapore Identified new areas of cooperation with the ambit of Blue economy; local government and trilateral cooperation with Sweden Reaffirmed bilateral and investment cooperation with Algeria and Switzerland High-level visits utilized to strengthen bilateral relations while focusing on cooperation in the pursuit global and continental agenda High level visits with Uruguay and Colombia culminated in the signing of MoUs on bilateral cooperation and political consultations respectively 6

7. Programme 2: International Relations Economic diplomacy work included meetings with chamber of commerce (31), targeted government ministries(17), high-level potential investors and importers(28) which covered areas such as: Renewal of AGOA, South Africa’s Country of recognition Application, infrastructure development and enhancing science and technology cooperation Created awareness about South African products and promoted the country as investment destination Missions showcased South Africa’s latest tourism products and networked with tourism industry players Potential investors and importers engaged include included the likes of Citropak, ELMED, Wein&Co, SPAR, TOTAL, LINPAK, Chrysssalis Prodema and Shuvan Wholesale, among others 7

8. Programme 3: International Cooperation Advanced national priorities, the African Agenda and the agenda of the South through participation in international organisations and mechanisms in order to influence outcomes and resolutions in pursuit of an equitable and just System of Global Governance in areas such as: –Human rights ( High Level Segment of the 28 th Session of the Human Rights Council) dealing with issues such as right to food, Palestine and rights of persons with albinism –Social Development (53 rd Session of the UN Commission for Social Development) and addressed social, economic, environmental Climate Change, NEPAD and post - 2015 development agenda as chair of G77 –Provided substance support to SA delegation to the World Economic Forum, Davos in January 2015 which focused on Africa’s Growth Ambitions and Global Infrastructure Investment, among others 8

9. Programme 3:Continental Cooperation Participated in the 24 th AU Summit in Addis Ababa in January 2015 under the theme “ Year of Women’s Empowerment and Development towards Africa’s Agenda 2063” - South Africa was endorsed as host of the 25 th AU Summit in June 2015 Advanced SA’s positions on peace and security issues during the AU PSC Ministerial and Summit meetings on the margins of the AU January 2015 Summit. - Focused on development in South-Sudan, the DRC, the Middle East and Boko Haram insurgency in West Africa SA participated in two SADC Election Observer Missions namely Zambia (20 January 2015) and Lesotho (28 February 2015) 9

10. Programme 3: South –South and North –South Cooperation Participated in the 14 th IORA Council of Ministers in Perth from 6-9 October 2014 -The meeting endorsed SA as vice-chair of IORA for period 2015/17 and chair from 2017 to 2019 - Meetings considered the BRICS draft strategy for Economic Partnership and adopted the BRICS chairship Terms of Reference, among others 10 Programmes Final Appropriation ProjectionActualVariance International Cooperation 485,329 504,400 485,155 19,245

11. Programme 4: Public Diplomacy and State Protocol services (APP) Performance IndicatorAnnual TargetAchieved by end of Q4 Media briefings, statements, opinion pieces and Public participation programmes (PPP) 24 media briefings 12 PPP 11 opinion pieces 32 17 24 Protocol services for state and ceremonial events, incoming and outgoing state visits Immunities and privileges provided for the Diplomatic Corps Respond to 100% of requests Responded to 16,591 requests, including requests for diplomatic accreditation and diplomatic privileges 11 ProgrammesFinal AppropriationProjectionActualVariance Public Diplomacy and Protocol 286,579 309,297 275,901 33,396

12. Programme 4: Public Diplomacy and State Protocol services Principals held nine (9) Media Briefings to articulate SA’ positions on international affairs Two (2) Public Participation Programmes were undertaken Continued to render State Protocol services 12

13. 13 FINANCIAL REPORT QUARTER 4

14. 14 Vote Expenditure per programme (R’000) Programmes Adjusted Appropriation Virement of funds Final Appropriation Quarter 4 ProjectionActualVariance Administration 1 396 255 (72,790) 1,346,779 1,419,569 1,238,370 181,199 International Relations 3 054 713 75,474 3,122,925 3,047,451 3,122,566 (75,115) International Cooperation 512 500 (19,071) 485,329 504,400 485,155 19,245 Public Diplomacy and Protocol 317 249 (22,718) 286,579 309,297 275,901 33,396 International Transfers 823 607 39,105 862,712 823,607 862,711 (39,104) Total 6 104 324 - 6,104,324 5,984,703 119,621 Economic Classification Compensation of employees 2,581,799 131,537 2,713,336 2,581,799 2,712,841 (131,042) Goods and services 2,414,835 (156,808) 2,258,027 2,414,835 2,246,252 168,583 Transfer payments 833,713 35,263 868,976 833,713 868,961 (35,248) Payments for capital assets 273,977 (9,992) 263,985 273,977 156,649 117,328 Total 6,104,324 - 5,984,703 119,621 Expenditure/projection as % of total budget100%98%

15. Vote Expenditure continued… Total expenditure for the department as at the end of the forth quarter amounts to R5.9 billion or 98% of the appropriation. This expenditure is 2% lower than the projected expenditure for the period which represent a net underspending of R119.6 million. The department recorded foreign exchange losses due to expenditure incurred in missions abroad and payment of membership contribution to international organisation of which South Africa is a member. The department also recorded under-spending on its capital infrastructure projects due to unforeseen and unavoidable circumstances. The unspent operational budget has been shifted to cover overspending in Programme 2 and 5. 15

16. Vote Expenditure continued… Programme 1: Administration The underspending is as a results of the following: 1.The Hague project was delayed due to the following: the request from the contractor to increase the contract cost by more than 30 per cent as allegedly attributable to the fact that they have under quoted the adjudicated bid. the uncovering of asbestos during the demolition phase, which the contractor declared a dispute and subsequently served notice to cancelled the contract with cost 2.Dar es Salaam was delayed due to: a dispute with the service provider on payment of the advance payment (deposit) by the department which led to the suspension of the project by the services 16

17. Vote Expenditure continued… 3.Lilongwe was delayed due to: Unexpected flooding that took place over a period of 22 days of which the construction was called off during that period. Programme 2: International Relations The programme had recorded an overspending as a result of depreciation of the Rand against other major currency. Consequently the expenditure for programme 2 has exceeded the adjusted appropriation. The overspending was covered from the unspent funds of Programme 1 due to insufficient cash flow available to meet the department's operational needs due to the impact of the foreign exchange rate fluctuation. 17

18. Vote Expenditure continued… Programme 3: International Cooperation The underspending is as a result of the office accommodation for PAP that has not be concluded. Programme 4: Public Diplomacy and Protocol The underspending is as a result of late claims received from partner department for the 2014 Presidential Inauguration activities. The amount has been requested for roll over. Programme 5: International Transfers Programme 5 had an overspending as well resulting from foreign exchange rates losses in relations to the payment of membership fees and South Africa's compulsory assessment contribution to the international organisations. 18

19. Vote Expenditure continued… The overspending was also covered from unspent funds of programme 1 and 4 resulting from insufficient cash flow available to meet the department's operational needs due to the impact of the foreign exchange rate fluctuation. 19

20. The Asset portfolio of the Department consists of the following: Immovable assets: Consist of Chanceries (Offices), Official Residences and staff accommodation Movable assets – Major (economic value over R5000): Consist of motor vehicle, office and domestic furniture, office and domestic equipment Movable assets – Minor (economic value less than R5000): Consist of office and domestic furniture, office and domestic equipment, audio visual and gardening equipment. Intangible Assets – Consist of software applications and patent. 20

21. The Asset portfolio of the Department consists of the following: Description Total Number of Assets Total Number of Locations Total Number of Custodians Total value R ’million Immovable1359475 1073 Movable: Major203635 1753 122 500 Intangible4543 27 Movable: minor145 9608 1784 347 104 Grand Total166 50313 4517 547 1 704 21

22. Status of the Assets Register The value of the immovable assets have been reduced from R5,1 billion to R1,0 billion, The reason for reduction was due to the following: All Assets that were procured prior 2002 and have no cost available have been recorded at R1. All assets that were procured prior 2002 and the purchase price documents are available have been recorded at cost using the exchange rate prevailing during that period, In the previous financial years, all these assets were recorded at the fair value based on the re-evaluation that was conducted by the department, This adjustments are based on the new Modified Cash Standards. 22

23. African Renaissance Fund (ARF) 23

24. 24 ARF Performance Report - Quarter 4 Performance indicatorsTarget ACTUAL PERFORMANCE AGAINST TARGETS Percentage of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Board meetings 100% of requests received responded to timeously as per objectives of the project plan. Two (2) Project Proposals processed for ARF Board meeting. Number of ARF structures and processes convened to identify and recommend projects in compliance with the ARF Act, 2000 and PFMA, 1999 Four Advisory Committee meetings to consider project proposals for recommendation Scheduled meeting was held. Democracy and good governance 100% of approved disbursement to support democracy and good governance processed 100% of approved disbursement to support democracy and good governance processed

25. 25 ARF Performance Report Performance indicatorsAnnual Target ACTUAL PERFORMANCE AGAINST TARGETS PCRD 100% of approved disbursement for PCRD processed 100% of approved disbursement to support PCRD processed Capacity-building 100% of approved disbursement to support capacity-building processed 100% of approved disbursement to support capacity-building processed

26. 26 ARF Financial Report R'000 Accumulated surplus1 864 871 Appropriated funds277 560 Interest received112 547 Committed funds – existing projects659 413 Approved Grants for disbursement 189 900 Available funds1 405 665

27. ARF Financial Report 2014/15 Approved projects are as following projects: (a) Humanitarian assistance to South Sudan (R15 million); (b) Humanitarian assistance for drought relief in Namibia (R100 million); (c) Humanitarian assistance to Palestine women and children (R11, 2 million); (d) Humanitarian Assistance for Ebola virus disease outbreak in West Africa and other African countries (R32,5 million); (e) South Africa’s pledge to the African-led International Support Mission to the Central African Republic (MISCA) (R11, 2 million; 27

28. ARF Financial Report (f) South Africa’s additional assessed membership contribution (R17 million) (g) SA’s Mediation support to Kingdom of Lesotho peace process (R3 million); and (h) South Africa’s participation in AU/SADC led Election Observation Missions (R13, million) 28

29. 29 THANK YOU