A BRIEFING TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS: NCR STRATEGIC PLAN 2015/16...
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Transcript of A BRIEFING TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS: NCR STRATEGIC PLAN 2015/16...
A BRIEFING TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS:
NCR STRATEGIC PLAN 2015/16 – 2019/20 & 3 YEAR ANNUAL
PERFOMANCE PLAN 2015/16 – 2017/18
PRESENTED BY NCR CEO, MS NOMSA MOTSHEGARE
10 June 2015
1
It is established in terms of the section 12 of the National Credit Act (NCA).
Its main purpose is to regulate consumer credit, monitor compliance and enforce the NCA.
The National Credit Amendment Act (NCAA): assented to and signed by the President on 19 May 2014; Regulation published on 13 March 2015
2
OVERVIEW OF THE PRESENTAION
Vision and Mission NCR Programmes: Snapshot Government Priorities Dti Priorities: outcome 4 Programmes 1-5 3 Year annual performance plan 2015-2018 Budget: 2015/16 – 2019/20 Possible challenges for programmes 1-5 Remedies for challenges to programmes 1-5
3
VISION & MISSION
VISIONTo promote a South African consumer credit market that is fair, transparent, accessible and dynamic.
MISSIONTo support the social and economic advancement of South Africa, by:regulating for a fair and non-discriminatory market for access to consumer credit; and promoting responsible credit granting, use and effective redress.
4
PROGRAMMES
8
PROGRAMS DTI NCR
Program 1 Facilitate broad-based economic participation through targeted interventions to achieve more inclusive economic growth
To promote responsible credit granting
Program 2 Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner
To protect consumers from abuse and unfair practises in the consumer credit market and address over-indebtedness.
To ensure effective implementation of the NCAA.
PROGRAMMES CONTINUED
9
PROGRAMS DTI NCR
Program 3 Facilitate broad-based economic participation through targeted intervention to achieve more inclusive economic growth
To enhance the quality and accuracy of credit bureau information
Program 4 Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures effective and efficient service delivery
To promote NCR’s operational effectiveness
Program 5 Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures effective and efficient service delivery
To ensure effective implementation of the NCAA
Programme 1: To promote responsible credit granting.
Goal/ Outcome Output Performance
Indicator/ measure
Estimate Performance Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Reduced levels of
over-indebtedness.
Improve
compliance with
affordability
assessment
regulations.
•Number of
workshops
conducted on
affordability
assessment
regulations and
appropriate
enforcement
action taken where
necessary.
1 workshop • 9 workshops
conducted on
affordability
assessment
regulations.
9 provinces
visited to
monitor credit
provider
compliance
and appropriate
enforcement
action taken on
non-compliant
credit providers
where
necessary
9 provinces
visited to
monitor credit
provider
compliance
and appropriate
enforcement
action taken on
non-compliant
credit providers
where
necessary.
3 YEAR ANNUAL PERFOMANCE PLAN
10
Goal/ Outcome
Output Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Reduced levels of
over-
indebtedness.
Improve
compliance with
affordability
assessment
regulations.
•Number of
provinces visited
to monitor
compliance and
appropriate
enforcement
action takenwhere
necessary.
Budget R6.6m
•9 provinces
visited to
monitor credit
provider
compliance
and
appropriate
enforcement
action taken on
non-compliant
credit
providerswhere necessary
R7.0mR7.6m R8.4m
3 YEAR ANNUAL PERFOMANCE PLAN
Programme 1: To promote responsible credit granting
11
Goal/ Outcome Output Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Affordable levels ofcredit promoted.
Increase compliancewith regulationspertaining to thetotal cost of credit
•Number of
investigations
conducted to
enforce regulations
and appropriate
enforcement action
taken where
necessary
Budget
Conduct a studyto review thecurrent levels ofthe total cost ofcredit.
R10.4m
Conduct 10investigationsand appropriateenforcementaction takenwhere necessary.
R11.1m
Conduct 15investigationsand appropriateenforcementaction takenwhere necessary.
R12m
Conduct 18investigationsand appropriateenforcementaction takenwhere necessary
R12.8m
Programme 1: To promote responsible credit granting
3 YEAR ANNUAL PERFOMANCE PLAN
12
Quarterly Milestones for Programme 1Goal/
OutcomeOutput Performance
Indicator/ measure
Baseline 2015/16Annual Target
Quarterly Milestones
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterReduced levels ofover-indebtedness
Improve compliancewith affordabilityassessmentregulations.
Number ofworkshopsconducted onaffordabilityassessmentregulations andappropriateenforcementaction takenwherenecessary.
Number ofprovinces visited tomonitor complianceand appropriateenforcementaction takenwherenecessary.
- 9 workshopsconducted onaffordabilityassessmentregulations.
1 3 3 2
- 9 provincesvisited to monitorcredit providersand appropriateenforcementaction takenwherenecessary.
Budget
1 3 3 2
R0.7m R1.8m R2.7m R1.8m
13
Quarterly Milestones for Programme 1
Goal/ Outcome
Output Performance Indicator/ measure
Baseline 2015/16Annual Target
Quarterly Milestones
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterAffordablelevelsofcredit promoted.
Increasecompliancewithregulationspertaining to thetotal cost of credit
Number ofinvestigationsconducted andappropriateenforcementaction takenwherenecessary.
Study conductedto review thecurrent levels of thecost of credit andrecommendationsto the dti.
Budget
Conduct 10investigationsAndappro-priateenforcementaction taken wherenecessary.
2 3 3 2
R11.1m R2.3m R3.25m R3.25m R2.3m
14
3 YEAR ANNUAL PERFOMANCE PLAN
Goal/ Outcome Output Performance Indicator/ measure
Estimate Performance Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Decreased levelsof reckless lendingpractices.
Conductreckless lendinginvestigationsand appropriateenforcementaction wherenecessary.
Number of creditproviders investigatedand appropriateenforcement actiontaken where necessary.
Budget
15 Compliancenotices/compliancecertificates wherenecessary.
R29m
20 creditprovidersinvestigatedandappropriateenforcementactiontaken wherenecessary.
R30.4m
25
R32.9m
30
R35.6m
Programme 2: To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.
15
Quarterly Milestones for Programme 2
Goal/ Outcome Output Performance Indicator/ measure
Baseline 2015/16Annual Target
Quarterly Milestones1st
Quarter2nd Quarter 3rd Quarter 4th Quarter
Decreased levels ofreckless lendingpractices.
Conduct recklesslending investigationsand appropriateenforcement actionwhere necessary.
Number of creditproviders investigatedand appropriateenforcement actiontaken where necessary.
15 Compliance noticesissued and compliancecertificate wherenecessary.
Budget
20 creditprovidersinvestigatedand appropriateenforcementactiontaken wherenecessary.
4 6 5 5
R30.4m R5.9m R9.7m R7.4m R7.4m
16
3 YEAR ANNUAL PERFOMANCE PLAN
Goal/ Outcome Output Performance
Indicator/ measure
Estimate Performance Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Improvedconsumer creditinformation.
Increasecompliance bycredit bureausin respect ofconsumer creditinformation.
Number ofcredit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.
Budget
2 credit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.
2 credit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.
2 credit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.
2 credit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.
R14m R16m R17m R18.5m
Programme 3: To enhance the quality and accuracy of credit bureau information
17
3 YEAR ANNUAL PERFOMANCE PLAN
Goal/ Outcome Output Performance
Indicator/ measure
Estimate Performance Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Number of creditbureau auditedReports reviewedand appropriateenforcementaction takenwhere necessary.
Budget
14 credit bureauaudited reportsreviewed.
14 credit bureauaudited reportsreviewed andappropriateenforcementaction takenwhere necessary.
14 credit bureauaudited reportsreviewed andappropriateenforcementaction takenwhere necessary.
14 credit bureauaudited reportsreviewed andappropriateenforcementaction takenwhere necessary.
R10.3m R11.5m R12.3mR9.6m
18
Quarterly Milestones for Programme 3
Goal/ Outcome
Output Performance Indicator / measure
Baseline 2015/16Annual Target
Quarterly Milestones
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Improvedconsumer creditinformation.
Increasecompliance bycredit bureausin respect ofconsumer creditinformation.
Number ofcredit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.
2 credit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.Budget
2 credit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.
Draft Terms ofReference.
Appoint Serviceprovider andcommenceinvestigation.
Continue withinvestigation andfinalise.
Take appropriateenforcementaction wherenecessary.
R16m R0.500m R2m R9m R4.5m
Number of creditbureau auditedreports reviewedand appropriateenforcementaction taken wherenecessary.
14 credit bureauaudited reportsreviewed.
Budget
14 credit bureauaudited reportsreviewed andappropriateenforcementaction taken wherenecessary
Review auditorsreports from creditbureaus.
Take appropriateenforcement actionwhere necessary interms of the auditreports.
Continue totake appropriateenforcementaction wherenecessary.
Continue totake appropriateenforcementaction wherenecessary.
R10.3m R1.5m R3.15m R3.15m R2.5m19
3 YEAR ANNUAL PERFOMANCE PLAN
Goal/ Outcome Output Performance
Indicator/ measure
Estimate Performance Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Efficient servicedelivery.
Improveoperationalefficiencythroughautomatedprocesses.
% of uptimeavailability of theIT system.
Budget
Implementation ofrecommendationsof the ICTassessment.
95% uptime ofthe IT system.
96% uptime ofthe IT system.
97% uptime ofthe IT system.
R44.1m R42.8m R46.3m R50.1m
Programme 4: To improve NCR’s operational effectiveness
20
Quarterly Milestones for Programme 4
Goal/ Outcome Output Performanc
e Indicator / measure
Baseline 2015/16Annual Target
Quarterly Milestones
1st Quarter 2nd Quarter
3rd Quarter
4th Quarter
Efficient service delivery.
Improve operational efficiency through automated systems
% of uptime availability of the IT system
Implementation of recommendations of the ICT assessment
95% uptime of the IT system.
95% uptime of the IT system.
95% uptime of the IT system.
95% uptime of the IT system.
95% uptime of the IT system.
Budget R42.8m R9.8m R10m R10.9m R12.1m
21
3 YEAR ANNUAL PERFOMANCE PLANProgramme 5: To ensure effective implementation of the National
Credit Amendment Act (NCAA)Goal/ Outcome Output Performance
Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Improvedcompliancewith regulationsand consumerprotection
Improveawareness andcompliance
Number ofworkshopsconductedwith relevantstakeholders.
Budget
30 workshopswith relevantstakeholdersand monitorcompliance with the NCAA.R9.3m
40 workshopswith relevantstakeholders
R10m
45 workshopswith relevantstakeholders
R10.8m
50 workshopswith relevantstakeholders.
R11.2m
Number ofmultimediaawarenesscampaigns (radio/TV/interviews/news print)conducted.
Budget
18 of any of the
following:-Radio-TV-Interviews-News print and
monitor
compliance with
the NCAA.
R2.3m
30 of any of thefollowing:- Radio- TV- Interviews- News print
R2m
30 of any of thefollowing:- Radio- TV- Interviews- News print
R2.1m
30 of any of thefollowing:- Radio- TV- Interviews- News print
R2.5m
22
Goal/ Outcome
Output Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Improvedcompliancewith regulationsand consumerprotection
Improveawareness andcompliance
Number of
outreach
programmes and
exhibitions (mall
activations/
Outside
Broadcast/
Roadshows/
Imbizos)
conducted.
Budget
5 of any of the
following
activities:-Exhibitions-Mall activations-Outside
Broadcast (OB)-Road shows and
monitor
compliance with
the NCAA.
R1.6m
8 of any of the
following:
- Mall activations/
exhibitions/ OB/
Road shows/
Imbizos in peri
urban and rural
areas.
R1.55m
11 of any of the
following:
-Mall activations/
exhibitions/ OB/
Road shows/
Imbizos in peri
urban and rural
areas.
R1.75m
15 of any of the
following:- Mall
activations/
exhibitions/ OB/
Road shows/
Imbizos in peri
urban and rural
areas.
R2m
3 YEAR ANNUAL PERFOMANCE PLANProgramme 5: To ensure effective implementation of the National
Credit Amendment Act (NCAA)
23
Goal/ Outcome
Output Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15 2015/16 2016/17 2017/18
Improvedcompliancewith regulationsand consumerprotection
Conduct specialinvestigationsand appropriateenforcementaction takenwhere necessary
Number of raidsconducted andappropriateenforcementaction takenwhere necessary
Budget
Conduct 2 raids inone province andtake appropriateenforcementaction wherenecessary.
Conduct raidsin three (3)provinces andtake appropriateenforcementaction wherenecessary
Conduct raidsin four (4)provinces andtake appropriateenforcementaction takenwhere necessary
Conduct raidsin four (4)provinces andtake appropriateenforcementaction takenwhere necessary.
R1.6m R1.55m R1.75m R2m
3 YEAR ANNUAL PERFOMANCE PLAN
Programme 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
24
Quarterly Milestones for Programme 5Goal/
OutcomeOutput Performance
Indicator / measure
Baseline 2015/16Annual Target
Quarterly Milestones1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Improvedcompliancewith regulationsand consumerprotection
Improve awarenessand compliance
Number of
outreach
programmes
and
exhibitions
(mall
activations/
Outside
Broadcast/
Road shows/
Imbizos)
conducted.
5 of any of the
following
activities with
special focus on
peri urban and
rural areas:-Exhibitions-Mall activations-Outside
Broadcast (OB)-Road shows
Imbizos and
monitor
compliance with
the NCAA.
Budget
8 of any of the
following:-Mall activations-Exhibitions/-OB/ Road shows/ Imbizos in periurban and rural areas.
R1.55m
2
R0.225m
2
R0.550m
2
R0.225m
2
R0.550m
25
Goal/ Outcome
Output Performance Indicator / measure
Baseline 2015/16Annual Target
Quarterly Milestones
1st Quarter 2nd Quarter
3rd Quarter 4th Quarter
Improvedcompliancewith regulationsand consumerprotection
Conduct specialinvestigations andtake appropriateenforcement actionwhere necessary.
Number of raidsconducted andappropriateenforcementactions taken wherenecessary.
Conduct 2 raids inone province andtake appropriateenforcement actionwhere necessary.
Budget
Conduct raidsin three (3)provinces andtake appropriateenforcement actionwhere necessary
Planning andinformationgathering.
Conduct 1 raidin one provinceand appropriateenforcementaction taken wherenecessary
Conduct 1 raidin one provinceand appropriateenforcementaction taken wherenecessary
Conduct 1 raidin one provinceand appropriateenforcementaction taken wherenecessary
1.55m R0.550m R0.225m R0.550m R0.225m
Quarterly Milestones for Programme 5
26
POSSIBLE CHALLENGES FOR PROGRAMMES 1-5
Lack of understanding of the NCAA
Inefficient service delivery
Funding
REMEDIES FOR CHALLENGES TO PROGRAMMES 1-5
Compliance monitoring: Affordability assessment Targeted consumer awareness & education initiatives Coordination with other regulators Regular compliance monitoring of registrants and enforcement of
the Act Funding Challenge: to find creative ways to perform some
functions: Consumer education & research; fees from new registrants; penalties for late renewals; introduce new fee regulations.
Engagement with registrants & key stakeholders Improve operational efficiency through improved automated
processes
28
BUDGET FOR THE 2015/16- 2019/20
YEAR 2015-2016 YEAR 2016-2017 YEAR 2017-2018 YEAR 2018-2019 YEAR 2019-2020
Operational expenditurePersonnel costs 82,231,124 88,809,614 95,914,383 103,587,534 111,874,537 Administration Costs 20,282,813 22,311,093 24,542,202 26,996,422 29,696,063 Professional/Programme costs 22,904,094 25,194,503 27,713,953 30,485,349 33,533,884
Total operational expenditure 125,418,031 136,315,211 148,170,539 161,069,305 175,104,484
Capital Expenditure
Fixed assets 4,239,539 4,239,539 4,239,539 4,239,539 4,239,539 ICT operational system 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Total capital expenditure 7,239,539 7,239,539 7,239,539 7,239,539 7,239,539
TOTAL EXPENDITURE 132,657,570 143,554,750 155,410,078 168,308,844 182,344,023 INCOME
Fees from registrants 55,051,555 56,251,555 57,451,555 58,651,555 59,851,555 Transfers from the DTI 65,727,000 69,577,000 73,056,000 78,900,480 85,212,518 Interest 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Other income 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Additional Funding from DTI 8,879,015 14,726,195 21,902,523 27,756,809 34,279,950 TOTAL INCOME 132,657,570 143,554,750 155,410,078 168,308,844 182,344,023
31