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DIRCO AND ARF PERFORMANCE AND FINANCIAL REPORT Quarter 2 & 3 Presentation to Portfolio Committee. 04 March 2015. TABLE OF CONTENTS. DIRCO reports on: 1.1 performance information Quarter 2 & 3 1.2 financial report: Quarter 2 1.3 financial report: Quarter 3
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DIRCO AND ARF PERFORMANCE AND FINANCIAL REPORTQuarter 2 & 3 Presentation to Portfolio Committee 04 March 2015
TABLE OF CONTENTS • DIRCO reports on: • 1.1 performance information Quarter 2 & 3 • 1.2 financial report: Quarter 2 • 1.3 financial report: Quarter 3 • African Renaissance fund (ARF): Quarter 2 &3
Programme 1: Administration • Forty five (45) vacancies filled, some within the four months turn around time, has also introduced e-recruitment to assist with the turn around times. • Completed the Organisational Functional Assessment. • Continued with its commitment to provide capacity building, provided seventy four (74) training programmes of which four (4) to international participants. • Continued to deliver consular services including the legalization of documents. • Improved the payment of suppliers with an average of 99% of suppliers paid within 30 days. • Submitted the MPAT self assessment.
Programme 2: International Relations Twenty structured bilaterals and eighteen high level visits with various countries with outcomes that includes : • Commitments to strengthen cooperation with Turkey in areas of Energy; Defence; Education and skills development • Agreed on Academic Cooperation (Mexico) and Action Plan for future engagements with Mexico and Canada • Commitment for financial assistance in green economy, HIV Prevention, Governance Public Administration was made by Germany • Explore areas for further cooperation in education, science and technology, health and arts and culture with Czech republic • Intensified cooperation in mining, the blue economy, science and technology and agriculture
Programme 2: International Relations Economic diplomacy work included meetings with chamber of commerce (52), targeted government ministries(20), high-level potential investors and importers(33) which covered areas such as: • technical matters impacting on the export of South African horticultural products as well as the way forward regarding South Africa’s Country of recognition Application were discussed. Discussions also centred on possible areas of cooperation w.r.t. SA’s infrastructure and development • the import of South African fruit and meat as well as country-specific training in the defence area • possible collaboration in areas of agriculture, food processing, aviation, transport infrastructure and science and education • Engagements included the likes of Mondi, Nestle, Shell and stakeholders in the canned and frozen foods industry
Programme 3: International Cooperation (APP) Participate and play an active role in international organisations and institutions in line with South Africa’s national values and foreign policy objectives in order to influence outcomes and resolutions in order to promote an equitable and just System of Global Governance in areas such as: • Peace and security (UNSC, Disarmament, peace building) • Sustainable Development (social, economic and environment) (Climate Change issues, post - 2015 development agenda, SA member of the Economic and Social Council (ECOSOC), G20 & Commission on Population & Development) • Human Rights and Humanitarian Affairs (SA Member of UN Human Rights Council (HRC), UN High Commission for Refugees Executive Committee (UNHCREXCOM), Convention on Rights of Persons with Disabilities (UNCRPD), Sessions of the UN Commission on the Status of Women & other
Programme 3: International Cooperation • Participated in UNGA elections to elect members of the principle organs and subsidiary bodies of the UN • Advanced SA’ positions in the Regular Sessions of UNGA main Committees from Oct-Dec 2014 • Participated in the 27th Session of the Human Right Council in Geneva from 8-26 September 2014 • SA led budgetary negotiations on behalf of the Africa Group in COP12 and G77+China in COP 12 and COP/MOP1 • Handed over chair of the Group of like-Minded Mega bio-diverse Countries to Guatamala
Programme 3: International Cooperation • Advanced SA’s position on nuclear disarmament, nuclear Non-Proliferation and peaceful uses of nuclear energy during the International Atomic Energy Agency Board of Governance (IAEA) • Advanced SA’s positions in support of its domestic imperatives and regional initiatives through Contributing to the Ministerial Declaration on Sustainable Development Goals (SDGs) during the ECOSOC High-Level Segment, Annual Ministerial Review & Ministerial High-Level Political Forum
Programme 3:Continental Cooperation (APP) • Participate and play active role in continental and regional structures to contribute and enhance efforts for sustainable development and peace and security • With particular focus on: • Strengthening the AU and its structures • Participating in peace missions, and (Peace, Conflict, Reconstruction and Development (PCRD) initiatives • Democracy, Good Governance (APRM) & Human Rights • New Partnership for Africa’s Development (NEPAD) • Regional Integration to increase intra-Africa trade
Programme 3:Continental Cooperation • Convened three national consultative sessions ( Youth; Academia and women) on AU Agenda 63: • Advanced SA’s positions on Border control issues; Transnational crimes; Funding for terrorist and foreign involvement in Africa and the Establishment of specialized counter-terrorism unit in Africa at the AUPSC Summit in September 2014 • SA participated in Four SADC Election Observer Missions Mozambique; Botswana; Namibia and Mauritius • South Africa was elected chair of the SADC Organ on Peace, Security and Defense Cooperation during the 34th Ordinary Session of the SADC Summit held in August 2014
Programme 3: South –South and North –South Cooperation (APP) • Pursue cooperation among countries and groupings of the South and the development of common positions on political, economic, social and human rights issues and to harness emerging collective political and economic influence of countries of the South in pursuit of the Development Agenda. • With particular focus on: • BRICS; IBSA • EU; TICAD
Programme 3: South –South and North –South Cooperation • SA participated in the inaugural US-Africa Leaders Summit in Washington where the importance of AGOA for Africa’s development was discussed • Contributed to the Ministerial declaration on special developmental needs of Africa during the negotiations of G77 Ministerial outcomes on 26 September 2014 where SA was also elected chair of G77 during the meeting • Participated in the BRICS leaders Summit where the meeting agreed on the need for ratification the Agreement on the New Development Bank and the treaty on establishment of a Contingent Reserve Arrangements
Programme 4: Public Diplomacy and State Protocol services (APP)
Programme 4: Public Diplomacy and State Protocol services • Principals held (17) Media Briefings to articulate SA’ positions on international affairs • Twelve (12) Public Participation Programmes were undertaken • Continue to render State Protocol services
Vote Expenditure continued… Total expenditure for the Department as at the end of the second quarter amounted to R2.716 billion or 44.5% of the appropriation. The main cost drivers are as follows: • Compensation of employees • Cost of living allowance paid to transferred officials serving abroad and Locally Recruited Personnel salaries as well as benefits • Goods and Services • Operational expenditure for missions that is operating lease paid for the provision of accommodation in terms of office, residential and staff for transferred officials abroad, education allowances in relations to transferred staff abroad.
Vote Expenditure continued… • Transfers and Subsidies • Recapitalisation of the African Renaissance and International Cooperation Fund • Assessed membership contributions to international organisations which are US dollar denominated namely; • African Union • United Nations • Southern African Development Community • Commonwealth
Foreign exchange impact continued… • The department projects a shortfall amounting to R500 million based on the prevailing rates due to the depreciation of the rand against other major currencies on expenditure incurred in foreign currency in missions abroad as well as transfer payments to international organisations. • This imposes a major risk with regard to the management of the department’s budget, as the Department has no control over the fluctuation of both Rand against major foreign currencies as well as local currencies against major currencies. It also poses reputational risk to the department and the country.
Projected expenditure for the year • The department projects to spend all it budget however the projections are showing that the department will have budget shortfall of R195 million by the end of financial year due to foreign exchange loss. • The National Treasury has been informed of the projected budget shortfall as result of the exchange.
The Asset portfolio of the Department consists of the following: • Immovable assets: Consist of Chanceries (Offices), Official Residences and staff accommodation • Movable assets – Major (economic value over R5000): Consist of motor vehicle, office and domestic furniture, office and domestic equipment • Movable assets – Minor (economic value less than R5000): Consist of office and domestic furniture, office and domestic equipment, audio visual and gardening equipment. • Intangible Assets – Consist of software applications and patent.
The Asset portfolio of the Department consists of the following:
1. MANAGEMENT OF ASSETS Recurring Findings: • Existence: Assets not physically verifiable. • Completeness: Assets not recorded in the fixed asset register.
1. MANAGEMENT OF ASSETS Measures implemented: • The department set up an oversight task team consisting of 3 audit committee members, CFO and senior managers from Financial and Supply Chain Management. • Developed turn around strategy on assets management • Review the asset procedure manual • Conducted three days workshop with Corporate Service Managers(Heads of Administration at missions) • Appointment of asset controllers at Head Office. • Enforced the verification of assets using a scanning device (HARDCAT) • Introduced consequence management letters. • Quality assurance teams were sent to missions identified as high risk and non preforming. • Decentralisation of functions of asset register maintenance.
ARF Financial report 2014/15 Approved projects are as following projects: (a) Humanitarian assistance to South Sudan (R15 million); (b) Humanitarian assistance for drought relief in Namibia (R100 million); (c) Humanitarian assistance to Palestine women and children (R11, 2 million);
ARF Financial report (d) Humanitarian Assistance for Ebola virus disease outbreak in West Africa and other African countries (R32,5 million); (e) South Africa’s pledge to the African-led International Support Mission to the Central African Republic (MISCA) (R11, 2 million;
ARF Financial report (f) South Africa’s additional assessed membership contribution (R17 million) (g) SA’s Mediation support to Kingdom of Lesotho peace process (R3 million); and (h) South Africa’s participation in AU/SADC led Election Observation Missions (R13, million)
