1. CROSS-BORDER ROAD TRANSPORT AGENCY
Responding to our Strategic Challenges 24 August Portfolio Committee on Transport committee

2. Presentation Outline Staff Turn over Unrealised Value of the C-BRTA
Turnaround strategy
Resources needed to meet mandate

3. KEY EVENTS
Board Induction in November (Insufficient)
Firefighting commences
BM assigned to undertake a Status Quo Analysis
STAFF MOVEMENTS
Current Board appointed in October
2006
KEY EVENTS
Inaugural Strategy Session held in January
Board adopts C-BRTA Strategy Framework in May
6 Objectives define this Strategy
No Business/Operational Plan to guide Management
Turn Around Strategy Objective implemented
Minister briefed on progress achieved
STAFF MOVEMENTS
COO joins in February (Not part of the Strategy Session)
CEO leaves in March.
No CEO for the rest of that year.
CFO dismissed later this year.
Interviews for CEO position held
Key Appointments made:
CFO
Law Enforcement HR
Facilitation
2007
KEY EVENTS
Strategy Session held in April
Incoming CEO part of the Strategy Session (Deliberate move)
Director Induction on Corporate Governance
Operation Clean Audit is mooted.
Organised Labour part of the Strategy Session
CEO’s holds a Strategy Session later this year
STAFF MOVEMENTS
COO resigns
Company Secretary resigns
Key Appointments made:
Company Secretary
CFO
Legal Executive
2008
KEY EVENTS
Management Strategy Session in January
STAFF MOVEMENTS
CEO suspended
CEO resigns
CS’s contract expires
Some Board Members are retired and subsequently reappointed
Key Appointments made:
Strategy Executive
Corporate Affairs Executive
Company Secretary
Caretaker CEO
2009

4. Unrealised Value of the C-BRTA
The founding assumption was that the C-BRTA would finance its operations through “selling” cross-border permits and through issuing of “penalties” to those who violate permit conditions.
Experience suggests that these funding mechanisms have been inadequate in meeting operational costs and capital funding requirements of this Agency.
The costs of providing a satisfactory service far outweigh revenues generated through the provision of the function, esp. in regard to law enforcement.
What is clear is that due to its historic untenable financial position, this Agency has never been able to provide for more than the bare minimum in terms of responding to the strategic intent of its founders.

5. Unrealised Value of the C-BRTA (2)
In essence, the C-BRTA has not been able to develop the capacity to play a strategic role in driving the agenda of harmonising road transport operations in the SADC region.
It has also not been able to take up the role of championing regional integration as contemplated in Agency’s founding address of the 18th August 1998 (by Minister Mac Maharaj).
The combination of these factors have had the effect of undermining the legitimacy of this Agency as a strategic resource of the Minister of Transport in addressing and resolving SADC issues.
As a consequence of this failure, the C-BRTA’s capacity to lead in its area of operations has been diminished and its image severely tarnished.

6. Turnaround Strategy

7. Key Strategic Thrusts
The C-BRTA is called upon to focus on improving safety, security, reliability, quality and speed in the transportation of goods and people across our borders.
This Agency is expected to drive processes aimed at the realisation of regional economic integration and the harmonisation of transport systems, policies and approaches across the region
The aim of these interventions is the development of a new competitive edge for the region as a whole.
Enhance the development of the principal operational programmes, Regulation, Law Enforcement, Facilitation and Advisory
Ensure that Research and Advisory adopts issues in this slide as their primary strategic challenge and begin to develop approaches for addressing these matters (first progress report to be presented on the 6th September 2010 and every second week from that point onwards tangibles are expected to be ready within seven months from the 6th of September 2010).

8. Championing the development of One-Stop Border Posts (OSBP)
Interventions (1)
Define the role of the C-BRTA in reducing operational constraints at ‘targeted’ border posts
Championing the development of One-Stop Border Posts (OSBP)
Actively engage with processes of turning Southern Africa into a regional economic force
ACTION ITEMS:
Research and Advisory to champion bullet 1 above: First report expected within 6 months from the 1st August 2010, which will be the 1st February Noticeable progress in the realisation of the objective articulated in bullet 1 is expected from 1st August 2011.
Facilitation and Advisory is expected to champion the development of thinking pertaining to bullet 2 above: First report is expected within 6 months from the 1st August 2010, which will be the 1st February Noticeable progress towards the realisation of the objective articulated in bullet 2 above is expected from the 1st August 2011.
Facilitation and Advisory is expected to champion the development of thinking pertaining to bullet 3 above: First report is expected within 3 months from the 1st August 2010, which will be the 1st December Noticeable progress, i.e. the establishment of the first OSBP within South African borders must be realised not later than the 1st June 2011.
Research and Advisory is expected to lead thinking in regard to the realisation of this objective and to produce their first report not later than the 1st April Tangible progress in regard to the realisation of the objective articulated in bullet 4 above is expected by not later than 1st October 2011.

9. Interventions (2)
Crystallise the role of the C-BRTA in driving regional integration
Provide leadership on the harmonisation of transport models with the SADC region
Obtain agreement on the use of commercial principles in the public sector and identify opportunities within our mandate
We need to review the composition of the Board as prescribed in the Act
There is a need for strengthening the Agency’s legislative framework in order to protect the internal integrity of the C-BRTA
The principles of corporate governance are aimed at constraining our fallibility as human beings. They are designed to prevent us from looking for opportunities to serve our own interests. The experience of the C-BRTA has taught us that human beings act in their own best interests, and rarely do they act in the best interests of an organisation.
The Act does not prescribe corporate governance principles and it does not curtail the vagrancies of the human element;
It does not prescribe a clear line of differentiation that limits the role of the Board in regard to operational matters;
The Act assumes that people appointed to the Board of the C-BRTA would be knowledgeable about public sector governance issues and that they would be experts on regional transport operational issues.

10. Interventions in Law Enforcement
To enable the division to fulfil its strategic mandate and to achieve optimal performance:
Increase the visibility of cross-border law enforcement functions by increasing the number of personnel in the law enforcement division to 299 (from 74!)
Develop standard operating procedures aimed at rationalising road transport law enforcement
Strategic location of cross-border law enforcement functions at border posts
Integration of processes with Finance to enable the implementation of an accrual based accounting system;
Establishment of a Law Enforcement Database and an Inspection Database;

11. Interventions in Law Enforcement (2)
To develop a sustainable funding model for the law enforcement function:
Immediate (current financial year): Secure the R60 million grant to address immediate imperatives in the law enforcement division
Short term (next financial year): Obtain agreement on the need for Govt to subsidise the provision of the law enforcement function
Medium term (over the next 3 years): Increase the number of personnel in the law enforcement division to 299 (from 74!)

12. Strategic Tasks in Regulatory Function
To enable the division to fulfil its strategic mandate and to achieve optimal performance:
Obtain permission to increase tariffs by 25% for 2010/11
Finalise the development of a Regulatory Model to support the work of the Regulatory Committee in adjudicating on cross-border permit applications
Development of standard minimum requirements for cross-border vehicles
Improve the accessibility of the C-BRTA by providing some of the functions from within the regional offices
Explore and develop the concept of “electronic application” for cross-border permits
Change Regulations to secure the right to adjust permit fees

13. Strategic Tasks in Regulatory Function (2)
To enable the division to fulfil its strategic mandate and to achieve optimal performance:
Drive the full implementation of the C-BRTA Amendment Act by ensuring the transfer of cross-border functions from the Operator Licence Boards to the C-BRTA
Develop mechanisms for detecting fraudulent permits and improve security features on cross-border permits
Revise the C-BRTA Regulations to transfer the authority for permit revision to the Agency from 2011 onward
Exploring the possibility of expanding the mandate of the C-BRTA in regard to the regulation of long distance or interprovincial transport operations
Engaging the Shareholder on the need for the continued existence of the Operator Licence Boards

14. Facilitation & Industry Development
To drive the harmonisation of road transport and regional integration within SADC:
Obtain agreement in regard to the liberalisation of market access within the SADC region
Obtain consensus on interventions aimed at reducing cross-border operational constraints, including the role of transport in championing the establishment of One-Stop Border Posts
Establish and maintain consultative structures for road transport management with regard to cross-border operations
Develop programmes and toolkits aimed at supporting emerging cross-border operators
To develop and market professional seminars, industry development workshops, information manuals, intelligence on transport needs and opportunities, etc.

15. Facilitation & Industry Development (2)
To facilitate structured engagements between the C-BRTA and its stakeholders:
Convene a Cross-Border Road Transport Indaba to engage all our stakeholders regarding their expectations on our changing role and strategic functions
Champion the development of partnerships between government and transport operators, users and other interest groups through forums such as the International Corridor Working Groups and the Joint Route Committees.
Drive engagements within the SADC region aimed at the review of transport agreements entered into between S.A. and her regional counterparts – towards a SADC multilateral agreement
Develop a Programme of Action for monitoring and evaluating the success of the C-BRTA in engaging with our counterparts and cross-border operators

16. Introducing Research and Advisory
To improve the quality of strategic insight in reports produced by the C-BRTA
Develop insights on the country’s policy stance in areas of trade facilitation and liberalisation of market access in order to guide the work of the Agency
Provide strategic support to the Minister of Transport in his engagements with the SADC counterparts
To conduct route utilisation assessments and to develop guidelines for determining need/demand analysis
Continuous strategic assessment of the impact of the value-add of the work undertaken by each of the four core functions and the overall strategic positioning of the Agency

17. Introducing Research and Advisory (2)
Develop the Agency’s research and technical capabilities to support its strategic tasks
Position the Agency as a driver of strategic thinking aimed at developing the region as an economic powerhouse
Develop strategic partnerships and spearhead cross-border transport issues in the region
Drive the regional road safety programme on behalf of the Minister of Transport

18. Operation Clean Audit 2012
Developing a register of all the Audit qualifications and a work-plan for the systematic resolution of these matters
Carefully monitoring progress in regard to progress achievement in the execution of the work-plan and ensure monthly reporting on progress achieved
Address other non-compliance issues:
Establish a functioning Supply Chain Management unit;
Establish a Risk Management Unit and a risk management framework for the C-BRTA
Introduce proper delegations and other internal control measures, etc.
Make an effort to resolve all audit issues within the current financial year.
Address other internal weaknesses in the H.R. and the Finance Departments

19. Operation Clean Audit 2012 (2)
Complete the business reengineering process and develop job profiles, segregation of duties and related management control systems using the information derived from this exercise
Development of Standard Operating Procedures (SOPs) for law enforcement and regulatory functions
Implement performance information and reporting systems
Create a conducive working environment with a view to arresting the high turnover at senior management level
Allow for the development of administrative systems and operational stability in the Agency

20. The Cross-Border Road Transport System
Developing a business case for funding of a new Cross-Border Road Transport Management System (for the SADC region)
Explore the possibility of obtaining donor funding for the development of a CBRTMS for SADC

22. Resources needed to meet mandate

23. Funding Imperatives (1)
To strategically reposition the C-BRTA to provide strategic and technical leadership in the SADC region:
Secure support of the Ministry in regard to the emerging strategic tasks of the C-BRTA
Secure funding for supporting the emerging strategic tasks of the C-BRTA
Explore alternative funding avenues for supporting the work of the C-BRTA, e.g. the World Bank, USAID, DBSA, etc.
Using commercial principles, think creatively about other possible means of generating revenues for the Agency.

24. Funding Imperatives (2)
Immediate funding challenges:
Obtain the Minister’s approval for the 25% revision of permit application tariffs
Obtain agreement on the need for a R200 million cash injection over a 3 year timeframe to enable the C-BRTA to recapitalise itself and to develop secure systems
Secure the right to revise C-BRTA’s permit tariffs
PROPOSED ACTION ITEMS:
Bullet 1: Regulation and Legal Services to champion this item and to start reporting on progress from the 31st August 2010.
Bullet 2: Regulation and Legal Services to champion this item as well and to start reporting on progress from the 31st August 2010.
Bullet 3: Financial Services Division to champion this item and to start reporting on progress from the 17th August 2010.

25. I THANK YOU
24th August 2010