2008/2009 Annual Report Labour Portfolio Committee Session 10 November 2009

1. 2008/2009 Annual ReportLabour Portfolio Committee Session 10 November 2009 JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

2. Overview • Background • 2008/9 Developments • Performance against 2008-2009 SLA • Financial Performance • Cash Resources • Audit Findings • Challenges • Training Lay-off Scheme • Impact of Skills Development

3. Background • Accounting Authority appointed in April 2008. • Mechanisms for good corporate governance put in place. • Executive Management Team appointed. • New organizational structure implemented in July 2008. • Strategic plan developed to , inter alia, curb over-expenditure, improve performance and enhance compliance. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

4. 2008/9 Achievements • Compliance with AGSA, Dept of Labour and SAQA requirements. • Impact of strict financial controls on over-expenditure. • R38 million DG Call. • Mandatory Grant payment backlog eradicated. • R28,5 million disbursed against pre – 2008/9 projects. • Strides made on provider accreditation and learner achievement. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

5. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Performance against 2008-9 SLA

6. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Performance against 2008-9 SLA

7. Financial Performance

8. Financial Performance (Cont’d) Record of Surplus/(Deficit )

9. Cash Resources

10. Audit findings Audit findings based on three factors: Inaccuracies of records maintained during 2007/2008 which were highlighted in the Audit Report for the year ended 31 March 2008; Inadequate hand-over of the MAPPP-SETA affairs from the Administrator to SETA Management; and Initial staff instability during the appointment of the new Accounting Authority. Significant portion of irregular expenditure of R 4,651m, whilst incurred during 2008/2009 financial year, resulted from service providers engaged by the Administrator prior to completion of their term of office and can thus be considered as a continuation of the costs incurred whilst the SETA was under administration.

11. Annual General Meeting • Section 51(1)(a) of the PFMA states that “An Accounting Authority for a public entity must ensure that the public entity has and maintains effective, efficient and transparent systems of financial and risk management and internal control”. • The SETA is required to provide its stakeholders with information on its progress insofar as financial and non-financial performance. • The SETA must gain acceptance and approval of its Annual Report from the stakeholders. • To comply with the above, the SETA held an Annual General Meeting on 28th November 2009 to which stakeholders were invited. • The cost of attending to this requirement was R22 681,11 for the hire of the venue

12. Challenges • Communication. • Battered image. • Limited revenue. • Board and staff development. • Apprenticeship administration. • Review of trades and qualifications. • Certification backlog. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

13. Training Lay-off Scheme • R5 million seed funding and infrastructure committed to TLS Project. • Project Team appointed and project plan put in place. • Board TLS Task Team appointed to serve a sounding board to the Project Team. • Service provider to assist with pilot and skills transfer appointed. • Working relationship established with CCMA and NSF. • CCMA updates received weekly. To date no companies in our sectors have applied for enrolment into TLS. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

14. Training Lay-off Scheme (Cont’d) • Research on companies in distress underway to determine required information to feed into the CCMA process. To this end, following has been done: • Advocacy campaign which commenced on 2 November 2009. • Development of an instrument for measuring the impact of the recession. • A sample of 60 potential participant companies identified for assessment. • Assessment to commence on 5 November 2009. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

15. Impact of Skills Development • 3850 learners certificated to date for 2005/2009 period. • The provincial spread of these learners is as follows: Eastern Cape - 436; Gauteng – 1115; Free State - 58; KwaZulu Natal - 519; Limpopo - 231; Mpumalanga - 265; Northern Cape - 271; North West - 316; Western Cape – 639. • Verification of results of approximately 2900 learners currently underway after a campaign of closing a large number of old projects. • Newly funded projects on course to deliver more learner results in near the future. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

16. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Impact of Skills Development

17. Impact of Skills Development • . JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

18. Impact of Skills Development • . JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

19. Impact of Skills Development • . JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

20. Impact of Skills Development • . JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

21. Impact of Skills Development (Cont’d) • Zanele Zondi says: I joined DRAFTFCB as an intern in November 2007 … I worked on brands such as Eskom, Toyota, SABC… I have since been working on more brands such as Lexus, City Press, Sportstake, Adcock Ingram, Tiger Brands, FNB . I was fortunate enough to win myself a silver Loerie Award this year. • Feziwe Tobi and Ncediswa Makuleni are running their own production house called Alpine Media with exclusive rights for making music videos as well as filming live performances for Hidden Prospects, a private music label producing 10 Digits (a hip hop group) in Uitenhage. • 5 learners, Yvonne , Phumla, Ncumisa, Mantombi, and Nomfundo got together to form their own clothing and design business called Abenzi Clothing. These learners were on the Craft Enterprise and Craft Operations Management learnerships last year. ATI provided them space for about 6 months to start-up their business. Thereafter they moved to their own offices in North End. They are making casual wear ,bedding, curtains and African wear for all age groups. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319 CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

22. Thank You!!!