1. NATIONAL CONSUMER TRIBUNAL
Briefing on the Annual Report 2016/17 of the
NATIONAL CONSUMER TRIBUNAL
Presented by:
Prof Joseph M. Maseko
Executive Chairperson
Date: 14 February 2018

2. The NCT’s Mandate
To adjudicate on applications and referrals under the National Credit Act, No 34 of 2005 (NCA), the National Credit Amendment Act 19 of 2014, and the Consumer Protection Act, No 68 of 2008 (CPA), as amended.
In terms of Sec 142 of the National Credit Act, the Tribunal’s guiding principles in its approach to adjudication are:
Inquisitorial;
Expeditious;
Informal; and
In accordance with the principles of natural justice.

3. Strategic Overview
Vision – “To be recognised as an independent and fair adjudicator in promoting and advancing the socio-economic welfare of South Africans”
Mandate – “The provision of accessible adjudication and redress on matters referred to the NCT in terms of the National Credit Act and the Consumer Protection Act.”
Guiding Principles – Inquisitorial, Expeditious, Informal and In accordance with the principles of natural justice.

4. Strategic Overview Values – Define and Shape NCT’s culture:
Honesty and Integrity
Approachability
Accessibility
Ethical Behaviour
Transparency
Accountability
Respect
Recognition
Responsiveness

5. Organisational Environment
Case load growth – 22.83% increase from 2015/16 and % from 2014/15. Received 22,673 cases (35,553 including withdrawals and duplicate filings)
Organisational structure and adjudicative resources remained largely the same (42 approved positions and 13 Tribunal members)
Financial Resources – R52,8 million
Governance Committees operated effectively (ie. ARC; HRPM; IT)

6. Strategic Goals
Goal 1: To effectively and efficiently manage and adjudicate on matters brought to the NCT
Goal 2: To contribute to an efficient and effective Consumer Regulatory environment
Goal 3: To ensure effective and efficient Organisational Management
According to the numbers of cases filed. This is not reflective of the time and resources required to manage these two types of cases to finality. Included in the number of Non-DRA applications is 5 duplicate filings.

7. Core Programs
Adjudication – Provide the necessary administrative and adjudicative and other related services to ensure that the NCT delivers successfully on its legislative mandate
Administration – Provide strategic leadership to the Tribunal to ensure the successful implementation of its legislative mandate through flexible, efficient and sustainable resource solutions and supporting services.

8. Performance Against Predetermined Objectives (Adjudication)
Strategic Objective
Output
Performance Indicator
Annual Target
Performance
To expedite service delivery through the expeditious finalisation of complete debt re-arrangement applications
Responsive, timeous service to stakeholders in line with mandate
Average number of days from date of filing of DRA to date of issuing order to filing parties
<100 days
71.35 days
To expedite service delivery through the expeditious finalisation of complete non-debt re-arrangement applications
Average number of days from date of close of pleadings of non-DRA to date of issuing notice of set down to filing parties.
< 30 days
16.49 days

9. Performance Against Predetermined Objectives (Adjudication)
Strategic Objective
Output
Performance Indicator
Annual Target
Performance
To expedite service delivery through the expeditious finalisation of complete debt re-arrangement applications
Responsive, timeous service to stakeholders in line with mandate
Average number of days from date of final adjudication of non-DRA to date of issuing judgment to filing parties
<40 days
22.13 days
To ensure that NCT decisions are substantively and procedurally correct
Ensuring that NCT decisions are substantively and procedurally correct and creating jurisprudence in consumer and credit matters
% of decisions overturned on appeal or review
< 5% 0%
2 decisions out of 21, 494 matters.

10. Case Management
Registrar’s Office is mainly responsible for the management of the case process, including legal support, research and records management.
Motion Courts, introduced during 2015/16 assisted in the managing of the NCT’s caseload, resulting in only 11,041 cases being brought forward into 2016/17 which is approximately 1 Quarter’s filings.
The Motion Courts further reduced the cost of adjudication by creating specialised processes.

11. Case Management
Innovative measures were further introduced to save on costs and to introduce efficiencies and service delivery improvement – for example, setting down numerous matters on the same day for hearings, also utilising various venues for hearings.
Digitisation of records remained a focus area, especially with high reliance on ICT interventions

12. Debt Re-Arrangement Applications:
Case Management
Debt Re-Arrangement Applications:
35, 553 (including duplicates and withdrawals) were received
36,158 applications finalised as per the table:

13. Case Management Non-Debt Re-Arrangement Applications:
476 new applications were received
454 applications finalised as per the table:

14. Case Management
Breakdown of 476 Non-DRA Applications:

15. Case Management
Breakdown of 476 Non-DRA Applications:

16. Appeals & Review
As at 31 March 2017:

17. Performance Against Predetermined Objectives (Administration)
Strategic Objective
Output
Performance Indicator
Annual Target
Performance
To ensure cooperation and partnership amongst external stakeholders through ongoing engagement
Co-operation and partnership between stakeholders
Number of structured engagements with external stakeholders including events, structured meetings and joint forums
12 engagements
33 engagements
To build Tribunal capacity through research papers or approved briefing papers on consumer protection and credit related matters, added to the NCT’s knowledge database
Increased knowledge
Number of research and approved briefing papers on consumer protection and credit related matters added to the NCT knowledge database 24
31 Research and approved briefing papers

18. Performance Against Predetermined Objectives (Administration)
Strategic Objective
Output
Performance Indicator
Annual Target
Performance
To ensure that the Tribunal has adequate human resources to deliver in accordance with its mandate
Adequate Human Resources to fulfil NCT Mandate
Percentage positions filled on approved organisational structure
85%
88.98%
To enhance operational efficiency by implementing an enabling ICT architecture
An ICT Enterprise Architecture that supports, enables and meets NCT’s requirements
Number of identified project deliverables implemented
Implement NCT Website interface to enable access to CMS by filing parties for status updates on cases filed with the NCT
Achieved. Completed system deployed into production environment for filing party access.

19. Performance Against Predetermined Objectives (Administration)
Strategic Objective
Output
Performance Indicator
Annual Target
Performance
To effectively and efficiently manage the financial resources of the NCT
Reliable budgeting and forecasting model developed, implemented and enhanced
Reliable budgeting and forecasting model developed, implemented and enhanced – as approved by the Executive Chairperson
Implement approved model
Achieved. Approved model implemented
To expand economic opportunities for historically excluded and vulnerable groups
Youth with employable skills and experience
Number of interns employed through structured opportunities created for youth development 4
6 Youth Appointed

20. HR & Facilities Management
Goal 1: To attract, develop and retain the right people to ensure that the right skills are available in the right place at the right time to deliver the NCT’s mandate.
Recruitment of a competent and capable workforce key priority
Filled 88.98% of positions on structure, 13 youths appointed into contingent pool and 6 interns provided with learning opportunities.
Developed Recruitment Strategy

21. HR & Facilities Management
Goal 2: To develop an enabling framework and working environment that optimises the potential for employee engagement and wellness:
Conducted an electronic and confidential organisational and engagement survey;
Commenced process to implement an employee wellness and health programme; and
Conducted an HR review by an external service provider

22. HR & Facilities Management
Goal 3: To shape a values-based culture that champions service excellence:
Performance managed in terms of NCT performance management system;
Monitored working hours and overtime; and
Flexible resourcing strategies utilised to include temporary resources in instances that workload spiked to ensure a healthy and sustainable work distribution.

23. HR & Facilities Management
Goal 4: To ensure compliance with all relevant employment and OHS related policies, legislation and regulations
All policies reviewed to ensure compliance
Established an Employee Representative Forum
Goal 5: To establish user-friendly HR systems to facilitate and inform HR data and reporting
Implemented an automated performance management system utilised for the bi-annual performance reviews.

24. HR Management HR Review Conducted by external service provider
Outcome of Process:
The NCT is a well-balanced organisation and the systems that have been put in place are functioning to their optimum. The new overall structure and reporting lines within the NCT have been well received by Employees and Managers in general.
Employees feel included in the processes and feel that their voices are heard when the need arises.
Complaints should be dealt with in a more timely manner in the future to eradicate any doubt within the minds of the Employees.
Employees have been included in communication platforms such as the Employee Representative Forum and direct communication with their Managers on areas that concern them both from a personal and professional perspective.
Policies and procedures are in place and the organisation can move from strength to strength with the support of the HR Department

25. HR Management

26. ICT Interventions Automated case management (CMS) ICT Security
Development of:
registrations subsystem for external e-filers.
E-filing submissions subsystem on CMS.
Epurse subsystem for electronic payments.
query management subsystem in CMS.
new look and feel NCT website
ICT Security
Installation of latest generation firewall for superior intrusion detection.
Cyber security audit including extensive penetration testing of the NCT network infrastructure.
Network segmentation to reconfigure the network to improve entry barriers to.
Weekly virus/malware scans, reporting and patch management introduced.

27. ICT Interventions ICT Systems’ Availability ICT Governance
Two successful disaster recovery tests done with all NCT Business units.
Generator installed to ensure continuity of systems in the event of Eskom power grid failure.
Network cluster infrastructure detailed monitoring resulting in > 98% up time of systems over the period.
ICT Governance
NCT governance COBIT framework dimensions progress reviewed quarterly by governance committee with no major findings.
ICT Capacity risk managed through appointment of an applications specialist and SLAs in place with Infrastructure and applications support service providers.
CMS change management risk managed by training programs held with critical users.

28. Communications Communications added value as follows:
To increase awareness and access to the Tribunal services.
Monitor and improve stakeholder perceptions of the Tribunal brand.
The Tribunal had 33 engagements with, dti, Provincial Consumer Affairs Offices, Regulators (NCC & NCR), Courts, Filing Parties, Professional associations (SAJEI, DCSA, PDA’s, ADR’s, BASA, Media Houses, Publishers, Universities), and hosted an African Dialogue conference.

29. Communications
Additional engagements were necessary to, inter alia, manage stakeholders’ service delivery expectations in view of a continuous increased caseload, to increase efficiencies and ensure better coordination with filing parties, increase access points (motion courts), change management to encourage electronic filing of cases, cohesion in consumer credit market, continuous research of effective adjudicative mechanisms and business re-engineering.
Increased awareness and knowledge of consumer protection policies (Academic- Youth Development and Publishers engagements).

30. Communications
The Tribunal co-hosted together with various South African Regulators the African Dialogue conference in Johannesburg, from August 2016 held under the theme Advancing Consumer Protection in Africa. The purpose of the conference was to:
Build agency capacities and cooperation so as to develop synergies and strategies for effective consumer protection and competition policies, and
Encourage information sharing about cross border commercial activities affecting consumers, and encourage cooperation among law enforcement agencies in Africa, US and rest of the world.

31. Audit Outcome Tribunal received its 5th successive clean audit.
Reasons:
Strict Adherence to Well-developed Policies and Procedures
Skilled /Motivated staff who ensured compliance with the policies & procedures
Highly skilled core management team that controls the process
The clean audit status will be maintained through maintaining and enhancing the current internal control systems.

32. Financial Management Revenue Collection
Income from filing fees is increasing as a result of the increase in the number of cases being filed.
2015/16 (Actual)
2016/17 (Actual)
2017/18
(Forecast)
Grant income
R43,029,000
R46,151,000
R48,459,000
Roll-over
R 3,000,000
R 9,817,000
Rnil
Filing fees revenue
R 2,172,000
R 4,440,600
R 5,404,000
Interest earned
R 1,473,000
R 2,193,000
R2, 736,000

33. Financial Management Expenditure
The increase in expenditure from to is mainly due to the implementation of motion courts and the number of cases being adjudicated on.
Employee cost decreased between and due to vacancies that existed at EXCO level. These have been filled by January 2018. 33

34. Financial Management Irregular Expenditure
Irregular expenditure of R was incurred during the financial year as a bid was awarded based on a copy of a B-BBEE certificate. The original certificate was later received. This irregular expenditure has subsequently been condoned by the National Treasury.
The NCT received the required goods together with value in this instance.

35. Financial Management
NCT ‘s financial resources in respect of the next MTEF period from 2017/18 to 2019/20 should be sufficient, despite current increased caseload, due to:
Implementation of motion courts;
Hearing more than one Non-DRA matter per day and increasing the number of DRAs per day;
Increase in filing fee (effective from 4 February 2016)
Anticipated future ICT enhancements;
Cost-saving on other line items, i.e. travelling, digitization
Approval of roll-over funds by National Treasury to be used for future operational cost requirements. 35

36. Governance
The 3 Governance Committees operated effectively during the year under review, exercising independent oversight over the governance, risk management and control processes a the NCT.

37. Risk Management
As at 31 March 2017, the NCT had 16 Strategic Risks on its register.
Those risks associated with constant and rapid increase in the NCT’s Caseload as well as insufficient funding to meet operational requirements were prioritised.
The Risks pertaining to cyber security further received a significant amount of attention.
At the end of the financial period, the NCT implemented 100% of the Risk Action Plans that were due for implementation.

38. Internal Control
the NCT provides a stringent and focused approach in ensuring effective internal controls.
Various Standard Operating Procedures were developed and implemented.
Compliance with these SOP’s is strictly and constantly monitored

39. Internal Audit
Internal Audit provides management with independent assurance services designed to add value and to continually improve the operations of the NCT. The critical function of Internal Audit is to:
Assess and make recommendations for improving the governance processes in order to achieve the NCT’s objectives
Evaluate the adequacy and effectiveness of the risk management process
Assist the Accounting Authority to maintain efficient and effective controls

40. Compliance
The NCT ensures compliance with the applicable legislation and regulations through its automated compliance monitoring system, known as Exclaim.
Compliance Checklists are completed via Exclaim which allows for the generation of quarterly compliance reports for the Audit and Risk Committee

41. NCT Judgments
All judgments of the NCT are available on

42. Our contact details Office Hours:
Monday to Friday, excluding public holidays, from 09:00 to 16:00.
Postal Address:
Private Bag X 110
CENTURION
0046
Physical Address:
The National Consumer Tribunal
Ground Floor, Building B,
272 West Avenue
Lakefield Office Park
Centurion, Pretoria
Telephone: (012)
Facsimile: (012)

43. THANK YOU
Q&A