Department of Communications2004/05 Annual Report

Presentation to Portfolio Committee8 November 2005

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

THE DoC LEADERSHIP TEAM

Gerda Gräbe: COO

Harry Mathabathe: CFO

Gift Buthelezi: Acting DDG: Strategic Policy Co-ordination, Integration and International Relations

Norman Munzhelele: Acting DDG: Policy Development

Mthobeli Tengimfene: Acting DDG: Innovative Applications and Research

Peter Zimri: CD: Technology and Research: Frequency Spectrum

Basani Baloyi: CD: Human Resources

Farhad Osman: CD: Strategic Planning and Monitoring

Brenda Ntombela: CD: DG’s Office

VISION

A global leader in harnessing Information Communication

Technologies for Socio-economic development

MISSION

To enhance the well being of the peoples of South Africa, the African continent and the world through

the creation of a sustainable and enabling Information Communication Technology

environment.

We shall through leveraging our world class knowledge, skills and experience, deliver on our

social contract to the people in a professional manner reflective of our national value system

informed by the Batho Pele.

MANDATETo create a favourable ICT environment that ensures South Africa has capacity to advance its socio-economic development goals, support the renewal of Africa and build a better world.

Core functions:

• To develop ICT policies and legislation that stimulates and enhances the sustainable economic development of the South African 1st and 2nd economy and positively impact on the social well being of all our people

• To evaluate the economic social and political implementation impact, outcomes and processes of the said policies

• To exercise oversight on State Owned Enterprises (SOE’s)

• To fulfil South Africa’s continental and international responsibilities in the ICT field

KEY PERFORMANCE AREA:Policy Development

1. Broadcasting Policy• Restructuring and conversion of the SABC into a public

company• Cabinet approved the restructuring of Channel Africa into a

subsidiary company of the SABC• Commissioned feasibility study on a funding model for the

public regional language television service• Infrastructure funding of the SABC• Commenced with the development of a Digital Policy Framework• Commenced with process for the connection of all community

radio stations to Parliament and amongst themselves• 4-year agreement to subsidise signal distribution fees for

community radio stations to optimally cover their licensed areas

2. Telecommunication Policy• Policy determinations around Voice over IP, Resale

of Spare Capacity, E-rate and VANS to acquire facilities from other licensees

• Licensing of SNO progressed• 7 USALs licensed and invitation was issued to apply

for licenses in 14 additional districts• ICASA issued 1800 and 3G Frequency Spectrum

licenses to Vodacom and MTN• Publication of the Convergence Bill

KEY PERFORMANCE AREA:Policy Development (cont)

3. Postal Policy• Extended SAPO’s exclusivity period for a further

3 years• Commenced with the development of an

information booklet on the role and functions of the Regulator and complaints handling procedure

• Appointed postal inspectors

KEY PERFORMANCE AREA:Policy Development (cont)

4. Universal Service and Access to ICT Services in SA• ICT BEE charter at an advanced stage• Reported on the Government ad-spend as

part of its marketing• Cabinet approved a strategy to support local

content production in the film and broadcasting industries

KEY PERFORMANCE AREA:Policy Development (cont)

• Commenced with PPP feasibility study on the 112 Emergency Call Centre

• Implementation of the Electronic Communications and Transaction Act Published draft regulations on the cryptography service

providers registry Published draft guidelines for the establishment of a body of

information system service providers Published the draft regulations for the Accreditation Authority Established the .za Domain Name Authority Commenced with the establishment of the Register of Critical

databases

• Rolled out the satellite data acquisition and the space weather prediction projects (ISSA)

KEY PERFORMANCE AREAS:Innovative Applications and Research

1. DOC contribution to the Integrated Sustainable Rural Development Programme and Urban Renewal Programme• Awareness campaigns to inform government

structures on the role of ICTs in service delivery• Rolled out ICT facilities in the nodes – in partnership

with portfolio organisations – telecentres, cyberlabs, public internet terminals (PiTs) and community radio stations

• PiT kiosks rolled out to every nodal point – each district municipality has a minimum of 5 terminals

KEY PERFORMANCE AREA:Strategic Policy Co-ordination, Integration

and International Affairs (SPCIIA)

2. International• Supported NEPAD ICT Programme - e-Africa

Commission; e-schools; ICT infrastructure programme

• Participated in preparations for the World Summit on Information Society (WSIS) – November 2005

• Participated in key international conferences

KEY PERFORMANCE AREA:SPCIIA (cont)

3. Bilaterals• SA/South Korea: agreed on 6 areas of co-operation• SA/India: ICT MoU signed• SA/Cuba: Joint Bilateral Commission established• SA/Algeria: 4th session of the Bi-National

Commission; draft MoU on Expedited Mail Services• IBSA Forum: Hosted IBSA Working Group on the

Information Society• PIAC on ISAD: 4th PIAC meeting, made

recommendations on education, health, SMMEs, e-government, local content

KEY PERFORMANCE AREA:SPCIIA (cont)

4. Special programmes• Gender

Launched a Women in ICTs portal

• Youth Facilitated, with the National Youth Commission,

SA youth’s participation in the ITU African Telecom Youth Forum

Contributions to the Annual Youth Guide of the National Youth Commission

KEY PERFORMANCE AREA:SPCIIA (cont)

• Restructured the Department in order to more effectively carry out its mandate in a changing sector

• Strategic Plan 2004-2009 developed and tabled

• 4 major pieces of legislation developed and submitted to Parliament – Telecommunications Amendment Act; Convergence Bill; ICASA Amendment Bill; Postal Services Amendment Bill

• In collaboration with ISSA, started investigating the viability of open source software within the Department

• 327 posts on the establishment of which 283 are filled• Staff turnover rate – 11.6• Employment equity:

KEY PERFORMANCE AREA:Organisational Excellence and Operations

Male Female TotalAfrican Coloured Indian White African Coloured Indian White

90 (1 disabled)

2 6 22 (1 disabled)

126 11 7 19 283 (2 disabled)

KEY PERFORMANCE AREA:Financial and Shareholder Management

• Unqualified audit report for third consecutive year

• Established Supply-Chain Management Business Unit

• Implemented policies aligned with supply chain management

• Implemented LOGIS as a procurement instrument

• Facilitated strategic linkages between departmental policy objectives and SOE’s strategic and corporate plans

• Developed a framework for interacting with SOE’s, in the form of planning cycle

• Commenced process of corporatising the Post Bank

• Reviewed shareholder compacts of entities

• Facilitated the finalisation of SAPO’s materiality frameworks the doc

Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

Budget vs Actual Performance

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

Appropriation per Programme

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

2004/05

Final Appro-priation

R’000

Actual Expenditure

R’000

Variance

R’000

Expenditure as % of final appropriation

1. Administration 98 209 94 045 4 164 95.8%

2. Telecommunication Policy

148 586 145 412 3 174 97.9%

3. Postal Services 1 086 784 1 081 879 4 905 99.5%

4. Multimedia Policy 339 548 326 668 12 880 96.2%

5. Auxiliary & Associated Services

6 790 1 935 4 855 28.5%

Total 1 679 917 1 649 939 29 978 98.2%

Administration consist of other

programs e.g Legal,

international & other support.

Administration consist of other

programs e.g Legal,

international & other support.

Appropriation per Economic Classification

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

2004/05

Final Appro-priation

R’000

Actual Expenditure

R’000

Variance

R’000

Expenditure as % of final appropriation

Current Payments 231 020 215 933 15 087 99.4%

Transfers and subsidies

1 441 572 1 430 841 10 731 99.9%

Payment on capital assets

7 325 3 165 4 160 56%

Total 1 679 917 1 649 939 29 978 98.2%

15 0ps 85 trfs

Disc 750 = 25 ops 75 trf’s

15 0ps 85 trfs

Disc 750 = 25 ops 75 trf’s

Variance Analysis

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

Final Appropriation 1 679 917

Expenditure 1 649 939

BALANCE 29 978

Roll-over requested 23 206

Approved roll-over 14 180

Deficit/ Surplus 15 798

Saving as % of budget 1.8%

Details of transfer payments

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Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

Adjusted Appropriation

Act

R’000

Actual Transfer

R’000

Variance

USA 15 884 15 884 -

USF 26 230 26 230 -

ICASA 186 928 186 928 -

NEMISA 17 803 17 803 -

.za Domain Name Authority 1 500 1 500 -

SABC: Public Broadcaster 47 400 47 400 -

SABC: Channel Africa 27 865 27 865 -

Details of transfer payments (cont)

Adjusted Appropriation

Act

R’000

Actual Transfer

R’000

Variance

SABC: Programme Production

28 500 28 500 -

SABC: Community Radio Stations

16 576 6 500 10 076

SA Post Office: Recapitalisation

750 000 750 000

SA Post Office: Subsidy 300 000 300 000

African Advanced Institute for ICT

13 000 13 000 -

Funding requirements for the 2004/05 MTEF

• Challenges to overcome without funding (limited to four options):- Regional Television Broadcasting- Advanced Institute for ICT- Sentech - Presidential National Commission

• Others- Universal Service fund- ICASA For VAT

Challenges request vs budget. 245 b vs 60 b

Challenges request vs budget. 245 b vs 60 b

Other Funding Challenges

Levying of VAT on transfer payments• SA Post Office• SABC licences• ICASA

CONCLUSION

Although we have not achieved all that we set out to achieve during the 2004/05 financial year, we are poised to became the employer of choice in the public sector and the preferred place in the ICT sector for intellectual stimulation, leadership growth and national service.

THANK YOU