1. MARINE AND COASTAL MANAGEMENT (MCM) – MARINE LIVING RESOURCES FUND (MLRF) Annual Report 2009/10 - Summary Oceans and Coasts information March 2011

2. Presentation overview Mandate related objectives Key Legislation applicable to activities of the MLRF (MCM). The transfer of fisheries to DAFF. Achievements & Challenges of MLRF(MCM)  Financials  Performance Information Concluding comment. 2

3. The mandate Related Objectives of MLRF GOAL To promote the conservation and sustainable use of marine and coastal resources. AIM To manage the development, sustainable use and orderly exploitation of marine and coastal resources. To protect the integrity and quality of marine and coastal ecosystems. 3

4. Key pieces of Legislation  National Environmental Management Act, 1998 – regulatory framework for the management and protection of environmental resources and coordination in relation thereto.  Marine Living Resources Act, 1998 (Act No. 18 of 1998) - deals with the long-term sustainable utilisation of marine living resources and the orderly access to exploitation, utilisation and protection of certain marine living resources. 4

5. Key pieces of Legislation cont  National Environmental Management: Integrated Coastal Management Act, 2008 (Act No. 24 of 2008) - establishes a system of integrated coastal and estuarine management so to ensure that development and the use of natural resources within the coastal zone is socially and economically justifiable and ecologically sustainable, as well as control of dumping at sea and pollution in the coastal zone.  National Environmental Management: Protected Areas Act, 2003- Regulates protected areas in South Africa. 5

6. The transfer of fisheries to DAFF Presidential Proclamation of Feb 2010 transferred the fisheries function, including management and administration of the MLRF to the Department of Agriculture, Forestry and Fisheries (DAFF with effect from 1 April 2010). MCM Branch ceased to exist after 31 March 2010 and mandate, functions and activities previously performed by MCM were split between the DAFF and the DEA. Following components remained; –The Chief Directorate: Integrated Coastal Management, –Biodiversity and Ecosystem Research (BER) which includes oceanography, as well as ecosystem utilisation, –South African National Antarctica Programme(SANAP), and –Proportional support staff for the above. 6

7. …Achievements & Challenges 7

8. UNQUALIFIED AUDIT REPORT  Auditor-General expressed an unqualified audit opinion:  What does this mean?  The 2009/2010 annual financial statements present fairly, in all material respects, the financial position of the MLRF as at 31 March 2010 and its financial performance and cash flows for the year.  Procurement system given a ‘clean bill of health’  No negative key governance responsibilities or other matters reported. 8 Year 05/06Year 06/07Year 07/08Year 08/09 & 09/10 20 Qualifications = R247m misstated (Disclaimed opinion) 7 Qualifications = R26m misstated 0 Qualification s (Unqualified opinion) 0 Qualifications (Unqualified opinion maintained) (Qualified opinion)

9. UNQUALIFIED AUDIT REPORT (cont.)  Key governance responsibilities (met in 2009/10) include; No significant deficiencies in internal controls relating to financial and risk management and compliance with applicable laws and regulations. Appropriate information systems in place. Clear trail of supporting documentation easily available. High quality annual financial statements. SCM – Procurement systems effective and efficient. Operational fraud prevention plan in place. 9

10. STATEMENT OF FINANCIAL PERFORMANCE Total revenue of R366 million (GG from DEAT = R218m) Total expenditure of R373 million (VOC = R152m) Net deficit of R6.8 million Prior year net deficit of R10.2 million 33.5% decrease in net deficit over the prior year. 6.2% increase in total expenditure. 7.4% increase in total revenue. 10

11. Achievements for MLRF (MCM) cont. Development of climate change strategy for South Africa’s ocean and coast was initiated. Several oil spill preparedness exercises were carried out. A suite of local oil spill contingency plans were reviewed. Close control and monitoring of dumping at sea had been undertaken. Policies and TAEs for both BBWW and WSCD were approved by new Minster and published in July 2009 11

12. Achievements for MLRF (MCM) All planned relief voyages to Antarctica, Marion and Gough Islands were successfully carried out, Oceanographic and biodiversity research observation voyages were undertaken. Population estimates of top marine predators (seals & seabirds) were conducted. Research towards the establishment of the first offshore Marine Protected Area in the immediate exclusive economic zone was published (Rationale and evaluation for the need). 12

13. Achievements for MLRF (MCM) cont. Intention to declare the Prince Edward Island Marine Protected Area was gazetted for comment. Studies and long-term monitoring of the physical marine environment conducted and published in an internal bi-annual State of the Marine Environment Report. Integrated Coastal Management Act, 2008 was promulgated in December 2009. Water quality guidelines for recreational use of coastal waters were revised and updated. Policies for BBWW and WSCD were approved by Minister and published in July 2009 13

14. Challenge for MLRF (MCM) The new Marion Island base could not be completed as scheduled, though it will now be launched in March 2011. 14

15. THE END THANK YOU 15