1. NATIONAL CREDIT REGULATOR
Annual Report 2013/2014
First Quarter Performance Report 2014/2015
Presentation to the Portfolio Committee on Trade & Industry
By Ms Nomsa Motshegare, NCR CEO
Date:

2. OVERVIEW OF PRESENTATION
Performance against Annual Targets 13/14
First Quarterly Performance Report 14/15
Financial Information
Key Successes and Challenges

3. PERFORMANCE AGAINST ANNUAL TARGETS
Strategic Objective 1 (SO1) To promote increased access to credit through responsible credit granting.
Output
Targets to be delivered by 31 March 2014
Actual Achievement
Implementation plan of the research recommendations.
Report on implementation of recommendations.
Achieved
Establishment of the National Register of Credit Agreements (NRCA) database.
- Produce final functional specification document of the NRCA
- Establish NCRA Steering Committee.
Proposal on Affordability Assessment Guidelines.
Develop proposal on affordability assessment guidelines.

4. PERFORMANCE AGAINST ANNUAL TARGETS cont.
Strategic Objective 2 (SO2) To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness
Output
Targets to be delivered by 31 March 2014
Actual Achievement
Implementation report of the consumer rights awareness strategy.
Produce a report on implementation of the strategy.
Achieved
Implementation report of the approved Enforcement strategy.
Implementation report of the stakeholder strategy.

5. PERFORMANCE AGAINST ANNUAL TARGETS cont.
Strategic Objective 3 (SO3) To continually enhance a consumer credit market regulatory framework
Output
Targets to be delivered by March 2014
Actual Achievement
Credit bureau compliance Assessment reports.
2 credit bureaus’ investigations conducted & enforcement action taken in terms of section 43, 70, 71 , 72 and regulations 17 to 20 of the NCA. (Registration; receipt & retention of info.)
Achieved
Approved and implemented on-site visit guidelines.
On-site guidelines to be approved and 12 on site visits to be conducted.
Exceeded
On-site visit guidelines approved and 14 on-site visits conducted.
On-site guidelines approved and implemented a month in advance.
Reason for variance

6. Performance against the annual performance plan
PERFORMANCE AGAINST ANNUAL TARGETS cont.
Strategic Objective 4 (SO4) To monitor and improve NCR’s effectiveness in fulfilling its mandate
Output
Performance measure or indicator
Targets to be delivered by 31 March 2014
Actual Achievement
Stakeholder assessment surveys conducted to improve service delivery.
Percentage of the positive
response rate.
50% positive response rate.
Achieved
Functional new Information and Communication Technology (ICT)
System.
-Functional Complaints ICT sub system.
-Go live report on registrations sub system.
-Go live registrations sub system.
Not achieved
Registrations sub system did not go live as planned.
ICT technical problems identified. Project on hold.
Reason for variance

7. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR
Output
Performance Measure or Indicator
Annual Targets
1st Quarter milestone
Actual Achievement
SO 1: To promote increased access to credit through responsible credit granting
Increase awareness of affordability assessment regulations.
No. of workshops conducted.
9 workshops conducted on affordability assessment regulations.
N/A
- Affordability assessment regulations not yet in force
- Were published for comment in August 2014.
Reduce cost of credit for consumers
Study conducted on Levels of the cost of credit.
Conduct a study to review the current levels of the cost of credit.
Procure the services of a service provider to conduct the review.
Achieved

8. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
Output
Performance Measure or Indicator
Annual Targets
1st Quarter milestone
Actual Achievement
SO 2: To protect consumers from abuse and unfair practice in the consumer credit market and address over-indebtedness
Conduct reckless lending investigations and issue notices/compliance certificates where applicable.
No. of compliance certs/ notices issued.
15 Compliance notices.
3 Compliance notices
Exceeded
6 compliance notices issued.
Implemented new strategy to combat unlawful advertisements
Reason for variance

9. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
Output
Performance Measure or Indicator
Annual Targets
1st Quarter milestone
Actual Achievement
SO3: To enhance a consumer credit market regulatory framework
Conduct investigations and take enforcement action on credit bureaus.
Number of investigations and enforcement action taken.
2 Credit bureaus investigated and enforcement action taken.
Draft terms of reference.
Achieved
Conduct compliance on site visits
Number of compliance on-site visits conducted.
18 on site visits to be conducted.
* 6 on site visits to be conducted
* Focus areas: Ads & marketing material; Affordability assessments; Removal of adverse consumer credit information.

10. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
Output
Performance Measure or Indicator
Annual Target
1st Quarter milestone
Actual Achievement
SO 4: To improve NCR's operational effectiveness
Improve operational efficiency through automated processes.
ICT recommendations implemented.
Implementation of recommendations of the ICT assessment
Conduct an assessment on the current ICT system.
Achieved
Increase the number of leaners recruited and trained
Number of learners recruited and trained. 20
Placement and training of learners

11. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
Output
Performance Measure or Indicator
Annual Target
1st Quarter milestone
Actual Achievement
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Create awareness of the NCAA.
Number and nature of awareness campaigns conducted.
30 workshops with relevant stakeholders and monitor compliance with the NCAA.
10 workshops
Exceeded 52 workshops
The workshops were mainly on the removal of adverse consumer credit information.
18 Radio / TV interviews/ News print and monitor compliance with the NCAA.
8 Radio / TV interviews/ News print.
Exceeded 50 radio/TV Interviews/news print.
Removal of adverse consumer credit information was a topical issue.
Reason for variance
Reason for variance

12. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA) (continued)
5 of the following activities:
- Exhibitions Mall activations Outside broadcast (OB) Road shows and monitor compliance with the NCAA.
2 activities
Exceeded
13 exhibitions /road shows.
Removal of adverse consumer credit information was a topical issue.
Conduct special investigations and take enforcement action where applicable.
Number of raids conducted on unregistered credit providers.
Conduct 2 raids in any province and take enforcement action where applicable.
Commence with planning for the raids.
Achieved
Reason for variance

13. FIRST QUARTER PERFORMANCE REPORT 2014/15 FINANCIAL YEAR cont.
Output
Performance Measure or Indicator
Annual Target
1st Quarter milestone
Actual Achievement
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Conduct special investigations and take enforcement action where applicable.
Number of investigations conducted on removal of adverse consumer credit information regulations.
10 investigations on large credit providers.
Investigate 5 entities.
Achieved
Number of investigations conducted on unsolicited credit provision and enforcement action taken 15
N/A

14. FINANCIAL INFORMATION
Financial Performance /14
2013/14
(Budget)
2013/14 (Actual)
2012/13
(Actual)
R million
R million
Total Income
99,2
94,9
93,5
Expenditure
(124,9)
(121,0)
(109,2)
(Deficit) for the year
*(25,7)
(26,0)
(15,7)
Total Assets
19,9
64,0
70,4
* Deficit funded by reserves
Report of Auditor-General
Unqualified opinion
No findings on compliance and supply chain management
No findings on performance information

15. FINANCIAL INFORMATION cont.
Budget
2014/15 (R)
2013/14 (R)
Variance (R)
Operations
117,761,427
117,479,709
281,718
Capex
11,692,717
19,918,172
(8,225,455)
Total budget
129,454,144
137,397,881
(7,943,737)
Less funding deficit
(15,652,801) -
Actual budget
113,801,343
(23,596,538)
Funding of deficit – 2014/15 (R)
Bytes - suspended
7,000,000
HR savings
4,000,000
2014 Premises
Professional fees (Imp. Assess.)
4,652,801
15,652,801

16. FINANCIAL INFORMATION cont.
Actual
Budget
Variance
June
Remaining budget R  %
Income
Fees from registrants*
6,659,620
5,654,112
1,005,508
17.78
38,387,132
DTI Transfers
38,307,000
38,307,066
-66
25,538,044
Other income
925,786
669,000
256,786 38
2,331,000
TOTAL INCOME
45,892,406
44,630,178
1,262,228
2.83
66,256,176
Expenditure
Personnel costs
16,610,454
15,877,986
-732,468
-4.61
55,732,307
Professional fees
868,636
1,004,000
135,364
-12.96
15,634,425
Counsumer education
1,351,368
1,524,384
173,016
11.35
4,608,343
Debt relief
93,307
239,737
146,430
83.92
3,539,015
Other expenses
3,641,647
3,659,529
17,882
-13
15,745,533
TOTAL EXPENDITURE
22,565,412
22,305,636
-259,776 -1
95,259,623
Highlights
* Fees collected from registrants exceeded budget by R1mil.
* Personnel overspent due to filling of existing vacancies sooner than had budgeted for (timing differences)

17. FINANCIAL INFORMATION cont.
Items
Spent (R)
Annual Budget (R)
Variance
(R)
Variance (%)
Remaining for the year
Capital expenditure
855,991
3,971,263
3,115,272
78%
Projects-ICT* -
7,721,454
100%
TOTAL
11,692,717
10,836,726
93%
Highlights
*ICT system currently on hold.

18. KEY SUCCESSES AND CHALLENGES
Established Credit Industry Forum
Enforcement Action:
Rolled out 3rd Learnership Programme 
23 referrals to the Tribunal
CHALLENGES
Fines imposed of R1.8million
Funding
Raids conducted in 3 provinces
Office Space
Consumer education:
Consumer Education: Rural and semi- urban areas
Advertising Value Equivalent of >R200m: Across all media channels
49 exhibitions, activations, road shows
Education workshops: Provincial Consumer Protection Desks; Trade Unions, Universities, Church Groups, Tribal Authorities

19. Thank You!