1. DIRCO 2014/15 ANNUAL REPORT Presentation to the Select Committee Mr Kgabo Mahoai Deputy Director - General 11 November 2015

2. Presentation Outline Background Programmes performance information Financial Position as at 31 March 2015 Conclusion 2

3. Some Key Highlights African Agenda forms the backbone of our foreign policy objectives Recorded many success in pursuit of regional peace and stability as well as regional integration regional peace initiatives such mediation in Lesotho As Chair of the SADC Organ on Politics, Defence and Security Cooperation deepened democracy through supporting election observer missions in Malawi; Mozambique; Namibia: Botswana; Mauritius: Zambia and Lesotho Supported work on the SADC Free Trade Agreement which influenced signing of the SADC-East Africa Community Market for Eastern and Southern Africa Tripartite Free Trade Agreement 3

4. Some Key Highlights Used membership of AUPSC to the causes of poverty and unemployment as drivers of violence and terrorism. Continued to manage our South-South relations in formations such as BRICS, IBSA, IORA and the G77+China to advance the African Agenda. Chairing the G77+China has enabled South Africa to position itself as the voice of developing countries on critical development issues facing the global community On the home front the Department has concluded its organisational review in order to streamline its work for the achievement of its strategic objectives 4

5. Programmes performance information 5

6. Programme 1: Administration Annual targetsAchievements Compliance with corporate governance requirements for ICT: ICT Policy, Charter, Plan, Implementation Plan, Operational Plan Adhered to two aspects of ICT Corporate governance: ICT Policy & Charter 100% network availability97,37% network availability 100% consular assistance responded to as per the Service Delivery Charter 100% (1 047)of cases reported: Citizens in distress, Detainee/prisoners new cases, Mortal remains, Whereabouts, Parental child abduction, Extraditions, Service of process 100% of documents processed and legalized 100% (43 793) documents processed and legalised 100% compliance with 30-day payment period 98,25% compliance 6

7. Programme 1: Administration Annual targetsAchievements Vacant posts filled within four months after advertisements Average turnaround time for filling of vacant posts was reduced to 5,3 months. Percentage of signed SMS performance agreements 99,6% (279 of 280) of eligible SMS’s performance agreements for 2015/16 signed and filed by due date 100% lodged grievances handled within 30 days 21% (10 out of 46) of grievances handled within 30 days 100% of disciplinary cases finalized within 90 days from date of being initiated 28% (two out of 7) disciplinary cases finalised within 90 days 7

8. Programme 1: Administration Annual targetsAchievements 72 training programmes in line with Work Place Skills Plan Exceeded target by 45 training programmes Two training programmes to international participants Five training programmes to International participants 100% Protocol training100% (64) Protocol training Three publications reflecting institutional knowledge and experience Five publications reflecting institutional knowledge and experience 20 Stakeholder engagements in support of foreign policy and four research papers 23 stakeholder engagements and four research papers on (Ukraine, Islamic States, Cyber Warfare & Price of Oil) 8

9. Programme 2: International Relations PerformanceAchievement 29 out of the planned 34 structured mechanisms During our bilateral engagements we focused on socio- economic development, market access & energy, agriculture, education, science and technology Signed MoUs on Trade and Industrial Cooperation, Academic Cooperation, Health, Science & Technology, Secured commitments on strengthening cooperation in fields of energy, defence, education, the blue economy, development assistance for rural development, skills development, mining, agriculture, science and technology Financial assistance committed for Green Economy, HIV Prevention, Governance and Public Administration 9

10. Programme 2: International Relations PerformanceAchievement 32 out of 65 planned High level visits The underachievement was due mostly to the national elections The status of bilateral relations were reviewed and strengthened; continental and global development of mutual concern were also discussed Tangible outcomes: signed MoUs in the fields of higher education & training, science & technology, health & a Five-to-Ten-year Programme of Cooperation Promoted SA as an investment destination 10

11. Programme 2: International Relations Areas targetedAchievements ECONOMIC DIPLOMACY Trade and investment seminars; Chambers of commerce; Government ministries; Potential investors; and Tourism promotion events Promoted exports in agro processing; renewable energy; various sectors such as banking; mining; automotive components; fruits; cosmetics; military equipment Explored possible collaboration in food processing; aviation; transport and infrastructure, science and technology and education Created awareness of SA products and promoted SA as a favourable investment destination through 111 trade and investment seminars; 122 engagements with various chambers of commerce; 52 engagements with different government ministries; 96 meetings with potential investors and 96 tourism promotion events 11

12. Programme 3: International Cooperation Focus area of the Targets Achievement Promotion & protection of human rights Negotiated and influenced the adoption of resolutions on: the implementation of the International Decade on People on African Descent Right of Palestinian people to self determination Right to development Disarmament, nuclear security and Non- proliferation Continued the promotion of peaceful uses of nuclear energy and the safety and security of nuclear energy. Post-2015 Development Agenda and Sustainable Development Extensive work done on South Africa’s position on the Post 2015 Development Agenda and the Sustainable Development Goals, to ensure alignment with the NDP, Agenda 2063 and NEPAD 12

13. Programme 3: International Cooperation Focus area of Targets Achievement UNGA and its Committees President’s participation to advance SA’s positions on: SA’s policy position on the Palestinian question and Western Sahara Reform of the UNSC Negotiated and influenced resolutions in the UNGA Main Committees including committees on Disarmament and International Security; Economic and Finance; Humanitarian and Cultural and Legal. Climate Change Extensive work done in preparation for COP21 where a new legal instrument under the UN Framework Convention on Climate Change will be negotiated G20President’s participation at G20 Summit resulting in the adoption of the Brisbane Action Plan 13

14. Programme 3.2:Continental Cooperation Focus areas of targets Achievement Peace and stability; socio- economic development; good governance and democracy Advanced Africa Agenda through participation at AU structures, providing a national account on efforts to promote and protect human rights, adoption of 2014 as Year of Agriculture and Food Security and national consultations towards Agenda 2063 Utilised AUPSC membership to promote peace and security on the continent, including discussions on the modalities for effective operationalization of the ACIRC Participated in seven election observer missions Provided support to the President at NEPAD Summits and the updates given on progress on Presidential Infrastructure Championing Initiative SADC Regional Integration In capacity as Chair of the Organ convened various Summits to address peace and security challenges, particularly in Lesotho, DRC and Madagascar Contributed to the adoption of the Draft Declaration on SADC Infrastructure Development 14

15. Programme 3: South –South and North – South Cooperation Focus areas of targets Achievement BRICSSixth BRICS Summit that saw the signing of the first formal BRICS intergovernmental agreements, the Agreement on the New Development Bank with its regional centre in South Africa IBSAContributed to IBSA fund that allowed for the timeous response of projects on rebuilding Palestine as well as aid to Ebola affected countries IORASouth Africa assumed Vice-Chair of IORA, hosted first international workshop on the Blue Economy Contact Group EUConcluded EPA negotiations and initialled the EU-SADC Economic Partnership Agreement US-Africa Leaders’ Summit Positioned South Africa as key trade and investment destination and renewal of AGOA 15

16. Focus areas of targetsAchievement Media briefings, statements and opinion pieces Utilized various platforms to articulate SA’s foreign policy positions on international affairs: 32 over the target of 24 media briefings; 229 out of 240 targeted media statements; 24 over the target of 11 opinion pieces Publications20 out of 19 targeted publications Public Participation programmes 17 out of the 12 targeted Public Participation Programmes undertaken to create greater awareness of SA’s foreign policy priorities 16 Programme 4 Sub-programme 4.1: Public Diplomacy

17. Programme 4 Sub-programme 4.2: State Protocol Focus areas of targetsAchievement Provided Protocol services for state and ceremonial events, incoming and outgoing state visits Provided protocol services at four special events; Facilitated 28174 dignitaries through the State Protocol Lounges; 148 requests for ceremonial services; 191 requests for incoming and outgoing international visits Provide immunities and privileges for the Diplomatic Corps Provided diplomatic immunities and privileges in the following areas: Issued 6015 diplomatic passports & visas; Responded to 7887 requests for Diplomatic accreditation; Responded to 2350 requests for Diplomatic privileges 17

18. FINANCIAL POSITION AS AT 31 MARCH 2015 18

19. 19 APPROPRIATION STATEMENT Adjusted Appropriation Virement Final Appropriation 2014/15 Actual VarianceExpenditu re as % 2013/14 Actual R'000 % Administration 1 419 569(72 789) 1 346 7801 247 94398 83792,7%1 263 110 International Relations 3 047 45175 473 3 122 9243 119 8823 04299,9%2 892 877 International Cooperation 504 400(19 071) 485 329485 154175100,0%451 689 Public Diplomacy And State Protocol 309 297(22 718) 286 579275 86110 71896,3%281 553 International Transfers 823 60739 105 862 712 -100,0%977 981 Subtotal 6 104 324 - 5 991 552112 77298,2%5 867 210

20. 2014/15 APPROPRIATION STATEMENT 20

21. 21 2014/15 Expenditure Outcome …continued Adjusted Appropriation Shifting of Funds VirementFinal Appropriatio n 2014/15 Actual VarianceExpenditure as % 2013/14 Actual Compensation of employees 2 581 79956 82774 0352 712 6612 709 7492 91299,9%2 433 733 Goods and services 2 414 835(91 658)(111 746)2 211 4312 197 84213 58999,4%2 208 968 Interest and rent on land -46 598- 46 5908100,0%35 745 Transfers & subsidies 833 713(469)35 732868 976868 96214100,0%984 330 Payment for capital assets 273 977(11 298)1 979264 658168 40996 24963,6%203 980 Payment for financial assets -------- Total 6 104 324-- 5 991 552112 77298,2%5 991 552

22. 2014/15 APPROPRIATION STATEMENT 22

23. 2014/15 Expenditure Analysis Virements: Virement of funds amounting to R114, 6 million was shifted from programmes 1, 3 and 4 to defrayment of over expenditure in Programme 2 and Programme 5 due the depreciation of the Rand against major foreign currencies, thus increasing operational costs incurred in missions abroad as well as the assessed contribution within Programme 5 as a result of foreign exchange fluctuation. The department could not request additional funding from National Treasury as the depreciation of the Rand was after the adjustment estimates were concluded 23

24. 2014/15 Expenditure Analysis Programme 1: Administration 1.The expenditure for 2014/15 expenditure of R1.3 billion has increase as compared to the 2013/14 of R1.2 billion. This is as a result of payment for construction projects which were planned to paid in 2013/14 were only paid in 2014/15 due to unforeseeable delays with the capital projects. Programme 2: International Relations 1.The expenditure for 2014/15 expenditure of R3,1 billion has increase as compared to the 2013/14 of R2,9 billion. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad. 24

25. 2014/15 Expenditure Analysis Programme 3: International Cooperation 1.The expenditure for 2014/15 of R485 million has increase as compared to the 2013/14 expenditure of R452 million. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad. Programme 4: Public Diplomacy and State Protocol 1.The expenditure for 2014/15 expenditure of R276 million has decrease as compared to the 2013/14 of R281 million. This was due to a once off expenditure in 2013/14 relating to the facilitation of the hosting of the 2014 Presidential Inauguration with regard to the protocol services provided to the invited Heads of State and Government. 25

26. 2014/15 Expenditure Analysis Programme 5: International Transfers 1.The expenditure for 2014/15 expenditure of R863 million has decrease as compared to the 2013/14 of 978 million. This was due to the department containing cost in relations to voluntary transfer payments, which would have resulted in an unauthorised expenditure. 26

27. ASSET MANAGEMENT AUDIT FINDING 1. Recording of assets acquired prior 2002 2. Classification of assets – Heritage assets 3. Physical existence and completeness of asset register OUTCOME 1. Missions and Business Unit performs physical verification. 2. Immovable assets procured prior 2002 have been revaluated. 3. All missions are recording all assets procured and disposed off in the web-based mission register. MEASURES IMPLEMENTED 1.Introduced a web-based asset register for each mission to safeguard and maintain assets. 2.Introduced electronic verification system. 3. Revaluation of works of arts 4. Revaluation of immovable assets acquired prior 2002. 27

28. PROCUREMENT MANAGEMENT AUDIT FINDING 1. Goods and services with a transaction value below and above R500 000 were procured without obtaining the required price quotations, as required by treasury regulation 16A6.1. OUTCOME 1. No audit finding on procurement of goods and services for 2013/14 and 2014/5 procurement to the value of above R500 000. 2. Non compliance was as a result of extension of contract which were acquired in line with procurement process. 3. Revised Financial Delegation of Authority. MEASURES IMPLEMENTED 1. Centralised procurement committees for goods and services 2. Established and Implemented procurement committees. 3. Conducted training of Supply Chain Management to all members serving in the committees. 28

29. EXPENDITURE MANAGEMENT AUDIT FINDING 1. Effective steps were not taken to prevent irregular, fruitless and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1. OUTCOME 1. Investigations underway (by internal audit section) and further action will be implemented upon receipt of the reports. 2. Revised the Financial Delegation of Authority. MEASURES IMPLEMENTED 1. Implemented a system to detect the irregular, fruitless and wasteful expenditure. 2. Keeping irregular, fruitless and wasteful expenditure register (missions and head office)for reporting. 3. Investigate matters reported and detected for further action. 29

30. REVENUE MANAGEMENT AUDIT FINDING 1. Effective and appropriate steps were not taken to collect all money due, as required by section 38(1)(c)(i) of the PFMA and treasury regulations 11.2.1, 15.10.1.2(a) and 15.10.1.2(e) OUTCOME 1. Revenue collected is clearly recorded and reported accordingly. 2. Revenue collected on behalf of Dept. of Home Affairs will be recorded and directly deposited to the National Revenue Fund. MEASURES IMPLEMENTED 1. Opened separate bank accounts in missions for revenue collection. 2. Opened separate line items for revenue collected on behalf of Dept. of Home Affairs. 3. Transfer of revenue collection and reporting function by Dept. of Home Affairs to DIRCO. 30

31. CONCLUSION 1.The financial position of the department is healthy, however, the department remained exposed to Rand fluctuations as a result of that the department had to contain costs and defer some of the expenditure to avoid unauthorised expenditure. 2.The department will continue to engage National Treasury for a permanent or long term solution to assist the department to be able to perform as per the plans. 3.The department will continue to put more effort in addressing all audit issues – action plan has been developed and will be monitored by the office of the Chief Operating Officer. 31

32. AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ANNUAL REPORT 2014/15 Presentation to Select Committee 11 November 2015

33. Introduction I am pleased with the steady progress we are making in utilizing the ARF to meet policy and strategic objectives of our government. The ARF has made significant strides in moving away from transfer payments to recipient countries towards ensuring that goods and services are procured locally. This new approach has led to a significant decrease in disbursement due to strengthening of governance structures. The Lesotho humanitarian project provided assistance to Basotho people while ensuring that there was a significant contribution to South African farmers. All commodities were procured locally and 40% of grain for production on maize meal was procured from small holder farmers. South Africa continues to be at the forefront of promotion of democracy and good governance by participating in SADC Election observer missions. Observers were deployed for elections in Mozambique, Botswana, Namibia, Zambia and Mauritius. 33

34. 34 ARF Annual Performance report 2014/15 Performance indicatorsTarget ACTUAL ACHIEVEMENT AGAINST TARGET 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. Twenty one (21) Project Proposals have been reviewed and submitted to committee meetings. 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 meeting to consider project proposals for recommendation Five meetings held to consider project proposals for recommendation. Democracy and good governance 100% of approved disbursement to support democracy and good governance processed timeously as per the objective of the project plan. Processed payments totalling R 3 440 949.52 with respect to South African deployment of election observer mission to Mozambique, Botswana, Namibia, Zambia and Mauritius.

35. 35 ARF Annual Performance report 2014/15 Performance indicatorsAnnual Target ACTUAL PERFORMANCE AGAINST TARGETS Socio – economic development 100% of approved disbursement to support social – economic development processed timeously as per the objectives of the project Processed payment of R 5 369 000 for implementation of Cuban Medical Brigade Project in Sierra Leone. Processed payment of R 4 251 709.71 for Rice and Vegetable Production Project in Guinea (Conakry). Capacity-building 100% of approved disbursement to support capacity-building processed timeously as per the objectives of the project Processed payment of R 7 100 000 for African Ombudsman Research Centre Project to the Public Protector

36. 36 ARF Annual Performance report 2014/15 Performance indicatorsAnnual Target ACTUAL PERFORMANCE AGAINST TARGETS To provide humanitarian assistance and disaster relief 100% of approved disbursement to humanitarian assistance processed timeously as per the objectives of the project Processed payment of R 141 000 as final payment for humanitarian assistance to Niger. To contribute to PCRD 100% of approved disbursement to support PCRD processed timeously as per the objectives of the project Processed payment of R 18 230 000 as South Africa’s contribution to the SADC Secretariat for the Lesotho peace process.

37. 37 ARF Financial report 2014/15 R'000 Accumulated surplus as at 31 March 20141 470 662 Appropriated funds277 560 Interest received112 547 Approved Grants for 2014/15 (189 900) Available funds as at 31 March 20151 670 869

38. ARF Financial report 2014/2015 2014/15 Approved projects: (a) Humanitarian assistance to South Sudan R 15 000 000 (b) Drought relief in Namibia R 100 000 000 (c) Humanitarian assistance to Palestine R 11 200 000 (d) Emergency relief to Ebola disease R 32 500 000 (e) South Africa contribution to Lesotho peace process R 20 000 000 38

39. Governance structures RolePerformance Portfolio CommitteeOversight on public entity The chairperson of ARF briefed the committee three times in the financial year Executive AuthorityPerformance monitoring The ARF submitted the Strategic Plan 2015 - 2017, APP2015/16, four quarterly reports, Annual report and Financial statements 2014/15 ARF Advisory committeeRecommendation of projects to the Executive Authority Held five meetings, processed 21 project proposals and recommended 10 project proposals. Risk CommitteeProvides advice to Accounting Authority of effectiveness of enterprise wide risk management Developed the risk management policy and strategy. Audit CommitteeReview of financial and performance information Held 6 meetings is during the financial year to review quarterly reports, financial statements and audit outcomes. 39

40. Governance The fund is managed through the control of the DG of DIRCO. The DG established a full time secretariat to monitor and evaluate projects, facilitate agreements and disbursements and provide secretarial services to Advisory Committee. The Advisory Committee, through the Secretariat, regularized the relationship between Fund and department by means of Operational Framework. The terms of reference for the Advisory committee and Secretariat were finalized and signed. The risk and audit committees were established during the financial year. 40

41. Governance The irregular expenditure incurred in the financial year was condoned by the Accounting Authority. It relates to projects that are long running with contracts that were irregular from previous periods. We are addressing the challenge of procurement in remote areas where it is not possible to comply with SCM prescripts. Finalization of agreements with recipient countries is an on- going challenge which affects the disbursement of funds. 41

42. SADPA/PFD bill The department is perusing efforts to review the legislative framework in order to consolidate international assistance provided by South African government. The draft Partnership for Development Fund is planned to the tabled before parliament in the 2016/2017 financial year. The objective of the bill is to support South Africa’s outgoing development cooperation policy by providing funding and technical support for development initiatives. 42

43. 43 THANK YOU