DoC LEADERSHIP TEAM

PRESENTATION TO PORTFOLIO COMMITTEE DEPARTMENT OF COMMUNICATIONS 2011/2012ANNUAL REPORT 10 October 2012 A global leader in the development and use of Information and Communication Technologies for socio-economic development

DoC LEADERSHIP TEAM A global leader in the development and use of Information and Communication Technologies for socio-economic development

DoC VISION, MISSION & MANDATE South Africa as a global leader in the development and use of Information and Communication Technologies for socio-economic development Vision Building an inclusive information society through a sustainable world class information and communication technologies environment Mission To create a vibrant ICT Sector that ensures that all South Africans have access to affordable and accessible ICT services in order to advance socio-economic development goals, support the African Agenda and contribute to building a better world Mandate A global leader in the development and use of Information and Communication Technologies for socio-economic development

GENERAL OVERVIEW • Due to focused planning and streamlining of priorities, in the 2011/12 financial year the Department committed to achieve a total of 99 targets across its 6 programmes. • When compared to the year end performance of the 2010/11 there is a 29% improvement of targets fully achieved. • This substantial improvement in performance can be attributed to the following amongst others: • Critical decision and policies approved by Cabinet. • Interaction with Provinces and local government in terms of the IGR Act have also been improved. • Financial performance both project delivery, and accountability for the budget has surpassed other previous years. • Alignment of strategic objectives and outcomes between DOC and its Entities has occurred. • Performance has sort to achieve the targets on the Ministerial delivery agreement. • Appointment of staff in key positions in DoC as well as in Entities. • Fully functional governance structures including the Organisational Performance Assessment Board A global leader in the development and use of Information and Communication Technologies for socio-economic development

Despite the drastic improvement in performance, the Department has fallen short in fully achieving a portion of its targets. This can be largely attributed to various project specific challenges as well as the following cross-cutting challenges amongst others: Delays in funding certain key projects due to budget cuts. Community Radio Equipment provision has delayed due to legal challenges with the incumbent service provider. HR capacity in certain key areas affecting our skills base to deliver on certain areas, e.g. DTT and Broadband. Finalisation of the Organisational structure, particularly Non-SMS level took longer than anticipated. Turn-Around of the PNC into its new mandate as a Information and Research Branch in terms of the new structure led to delays in implementing certain projects. Limited focus and lack of resources to support SMME development continues to strain the growth of this sector. KEY CHALLENGES A global leader in the development and use of Information and Communication Technologies for socio-economic development

Department also made extensive strides towards fostering collaboration with the ICT Industry aimed at job creation and economic development. In this regard, the Department established an ICT Industry Working Group made up of the Captains of the ICT Industry which was further supported by 6 Work-streams. INDUSTRY COLLABORATION A global leader in the development and use of Information and Communication Technologies for socio-economic development

FLAGSHIP PROGRAMMES A global leader in the development and use of Information and Communication Technologies for socio-economic development

Flagship Programme - Broadband: • The Department developed a broadband strategy document together with the broadband implementation plan. • A service provider was appointed to conduct an analysis of the current broadband status in South Africa. The project has commenced and is currently on schedule with five reports having been produced. • Among others the Department focused on the following broadband initiatives in the provinces (Sisonke District Municipality, Msinga, Tugela Ferry, Pomeroy and Keith’s Drift etc.) • Provincial and Municipal Broadband guidelines were finalised and distributed via the Broadband Intergovernmental Implementation Committee and the implementation was monitored. • Connectivity plans for connecting schools and Health centres was developed. • The DoC continually facilitated and monitored the roll-out of DTT infrastructure - 60% of population coverage had been achieved. • The low power transmitter roll-out was facilitated and monitored. Nineteen low power stations were established. A global leader in the development and use of Information and Communication Technologies for socio-economic development

Flagship Programme – Broadcasting Digital Migration • Cabinet approved the scheme for ownership support in March 2012. The rollout of the scheme will only start once prospective manufacturers have • been appointed. • With regard to developing a means test for identifying poor TV owning households and infrastructure for subsidy disbursement by USAASA, the Department engaged with USAASA to monitor progress against the SOS implementation plan and finalise the qualifying criteria for the subsidy scheme. • The target was fully achieved, as Cabinet approved the STB manufacturing sector development strategy in March 2012 and its implementation has commenced. • A request for information on manufacturing was gazetted and a briefing session was scheduled for 11 April 2012. • The digital migration project office structure was developed and approved. • A technical advisor for digital migration was appointed and other key posts in the digital migration project office were advertised and interviews were conducted. • A fully functional interim DTT project management office was set up and a war room on DTT was also established • Furthermore, a BDM public awareness campaign was launched in March 2012. A global leader in the development and use of Information and Communication Technologies for socio-economic development

Flagship Programme – e-SKILLS • The Department commenced with numerous e-Skills pilot training programmes. • The five provincial hubs are currently in the process of conducting provincial audits of all e-skills across business, government, education and civil society, conducting a gap analysis to address future needs in relation to the NeSPA, NGP, MTSF 2009-2014 and MDGs and to identify auxiliary projects and develop a process for collaboration across existing initiatives. • The Department has finalised a B-Level curriculum, which is ready to be offered. • Engagements have been initiated with several Universities to establish e-skills coordination and production hubs. • The ICT Career Expo 2011 was held from 3 to 5 October 2011. The main event was held in Olifantsfontein and an estimated 1800 participants took part, including Grade 10-12 learners, IT graduates and FET college students. Parallel activities were also held in Port Elizabeth, the Free State, Durban and Cape Town. A global leader in the development and use of Information and Communication Technologies for socio-economic development

Flagship Programme – Rural Connectivity • The Department developed an ICT Rural Development Strategy which was presented to the ISAD Multistakeholder Forum and Outcome 7 Executive Implementation Committee for discussion. • The strategy was further presented at the DG’s Implementation Cluster Committee and was adopted. • An implementation plan was developed, and its implementation has commenced in identified rural sites which focuses on: • Provision of Basic ICT Services as base for Service Delivery • Build ICT Infrastructure to bring Accessibility • Affordability on services that are needed • Schools labs and connectivity • E-Health connectivity • Radio and Television services • E-Agriculture • Cultural and heritage content A global leader in the development and use of Information and Communication Technologies for socio-economic development

Flagship Programme – SAPO & Postbank • The SAPO Bill was developed and underwent a legislative • Process. The final SAPO Bill was signed into law by the President in December 2011. • The Postbank Act came into operation on the 22 July 2011 and its implementation was monitored. • Following extensive research, the Department developed the • Borrowing, Lending and Investment Policies, which underwent stakeholder consultation with the National Treasury, Postbank and SAPO. • The final Policies were submitted to the Minister of Finance for concurrence. • Job Creation: • The Department promotes and monitors job creation through various projects, the most critical being BDM. Statistics pertaining the number of potential jobs will be finalised during the implementation of the STB Manufacturing strategy which was approved in the period under review. A global leader in the development and use of Information and Communication Technologies for socio-economic development

DoC PROGRAMMES The 2011/12 targets were allocated to the following 6 Programmes within DoC: • Programme 1: Governance & Administration • Programme 2: ICT International Affairs & Trade • Programme 3: ICT Policy Development • Programme 4: ICT Enterprise Development • Programme 5: ICT Infrastructure Development • Programme 6: Presidential National Commission on ISAD • The Presentation provides a high-level summary in terms of achievement of key targets per Programme however the details are available in the printed 2011/12 Annual Report. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT POLICY DEVELOPMENT • Purpose: Develop ICT policies and legislation that support the development of an ICT sector that creates favourable conditions for the accelerated and shared growth of the economy. Develop strategies that increase the uptake and usage of ICTs by the majority of the South African population, thus bridging the digital divide. • This programme consist of the following six (6) sub-programmes • ICT Policy Development drafts legislation, regulations, policy and guidelines that govern the broadcasting, telecommunications, postal and IT sectors, thus ensuring broad based economic development within the ICT sector. • Economic Analysis, Market Modelling and Research is responsible for economic analysis of the broadcasting, telecommunications, postal and IT sectors to determine trends and make growth projections. The sub-programme also undertakes market research to explore areas which require policy intervention. • ICT Uptake and Usage ensures that the ICT industry adheres to and implements policy and legislation and undertakes research to determine the extent to which policies are being implemented in the broadcasting, telecommunications, postal and IT sectors. • Intergovernmental Relations advises, coordinates and facilitates intergovernmental relations with all spheres of government in carrying out the departmental mandate. • South African Broadcasting Corporation: Community Radio Stations focuses on extending signal distribution to reach all communities and extending community multimedia services at selected nodal points. • South African Broadcasting Corporation: Programme Production makes transfers to the South African Broadcasting Corporation and other entities for producing programmes with local content on issues relating to youth, women, children the disabled, and HIV and AIDS, for commercial and community radio stations. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT POLICY DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Policy and Legislation • The integrated ICT policy framework, for a converged ICT environment was approved. • Through the legislative process necessary changes were effected, to the SAPO Bill after which the final SAPO Bill was signed into law by the President in December 2011. • The Postbank Act came into operation on the 22 July 2011 and the Department monitored the implementation of the Postbank Act through actively participating in the Postbank working Committee and Operations Committee. • With regards to the ICASA Amendment Bill, extensive consultations were undertaken as well as benchmarking after which the Department developed a comprehensive discussion document on improving the capacity of the regulator, which included the proposed areas for amendment to effect the desired impact of ICASA. • In terms of the White Paper on Broadcasting Policy, due diligence was conducted, after which a position paper on public broadcasting services was developed. • With regards to Postbank, following extensive research, the Department developed the Borrowing, Lending and Investment policies, which underwent stakeholder consultation with the National Treasury, Postbank and SAPO. The final Policies were submitted to the Minister of Finance for concurrence. • During the reporting period, the Department developed the PMS for ICASA councilors. The ICASA PMS was tabled in Parliament and subsequently approved. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT POLICY DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Broadcasting Digital Migration • Cabinet approved the scheme for ownership support in March 2012. The rollout of the scheme will only start once prospective manufacturers have been appointed. The Department engaged with USAASA to monitor progress against the SOS implementation plan and finalise the qualifying criteria for the subsidy scheme. • Cabinet approved the STB manufacturing sector development strategy in March 2012 and its implementation has commenced. • Furthermore, a BDM public awareness campaign was launched in March 2012. • Cost to Communicate • A process to enter into an MoU has been initiated with ICASA to implement a programme of action on cost of telephony in South Africa. • Research on international best practice on business processing outsourcing was conducted and a development pricing strategy was developed with the DTI. • Furthermore, an ICT data warehouse portal has been developed and populated with relevant ICT data regarding the performance of the ICT sector in general. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT POLICY DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • E-Skills • The Department introduced new short courses relevant to e-skills needs as well as established a national research for e-skills network across five local universities. • This impacted in the increase in the number of short courses relevant to e-skills capacity development needs; an increase in the intake in relevant e-skills aligned to and accepted by industry, government and educational needs and targeting rural and peri-urban communities. Furthermore, it increased the awareness of e-skills evidence-based research. • The ICT Career Expo 2011 was held from 3 to 5 October 2011, in line with the expansion model. Parallel activities were also held in Port Elizabeth, the Free State, Durban and Cape Town. • A formal national e-Skills Multi-Stakeholder Collaborative network established with formal commitment from key stakeholders across government, business, education and civil society to respond to the NeSPA. • Engagements have been initiated with North West University, the University of the Free State and University of Johannesburg to establish e-skills coordination and production hubs in the North West, Free State and Mpumalanga Provinces. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT POLICY DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Intergovernmental Relations • In implementing the IGR engagement framework, the Department engaged all provinces over the reporting period and established 7 structures where the Department can participate to promote the ICT agenda. • The implementation of the IGR engagement framework was monitored through the operationalisation of the various committees proposed by the framework and successful and constructive functioning of these structures • Various other IGR related initiatives were successfully undertaken across numerous provinces in relation to a multitude of projects. • The Department provided IGR advice and support to Minister and Deputy Minister and supported the public participation programmes. The Department supported 17 events as part of the Minister and Deputy Minister’s public participation programme during the reporting period, as well as the work of the SOEs. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INFRASTRUCTURE DEVELOPMENT • Purpose: Promote investment in robust and reliable, secure and affordable ICT infrastructure that supports and enables the provision of a multiplicity of applications and services. • ICT Infrastructure Development programme has the following sub-programmes: • Applications and Research is responsible for technology research and analysis, applications and content development; analysis of the legal environment to promote infrastructure technologies and managing the use of the National Frequency spectrum. • Meraka Institute: DoCmakes transfers to Meraka Institute to conduct research and develop ICT applications in the national interest. Transfers to the entity ended in 2009/10. • 112 Emergency Call Centre provides a single national emergency number, from which all emergency calls will be routed to the most suitable local response unit. • .za Domain Name Authority is responsible for administering and managing the .za domain name space. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INFRASTRUCTURE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Broadband • Broadband study conducted on cost, penetration and coverage to inform interventions going forward. • The Department focused on various broadband initiatives in the provinces (broadband pilot project in Sisonke District Municipality, Msinga resulting in stimulation of social economic activities) • Legal provisions in support of BB Infrastructure deployment was developed • Provincial and Municipal Broadband guidelines were finalised to support a coordinated approach to BB rollout. • Conduct Frequency spectrum audit to inform intervention with regards to efficient spectrum utilisation. • The Department developed a broadband strategy document together with the broadband implementation plan. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INFRASTRUCTURE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Connectivity to Health Centres and Schools • Connectivity plan for schools was developed to coordinate the deployment of BB connectivity for schools. • Draft Health centres connectivity plan was developed to coordinate and guide the deployment of BB connectivity for Health facilities. • DTT Infrastructure Roll-out • 60% population coverage of DTT rollout achieved to facilitate digital migration and freeing spectrum for BB. • 19 low power stations were established, positively impacting of household that do not access to some of the broadcasting services. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INFRASTRUCTURE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • Cybersecurity • The National Cybersecurity Policy Framework was approved by Cabinet on March 2012. • Establishment of a Cybersecurity Hub to contribute to combating cyber crime and making cybersecurity secure has commenced. • WRC -12 • Influenced the global radio conference through influencing SADC and African common proposals to WRC 12 such as the extension of digital dividend. A global leader in the development and use of Information and Communication Technologies for socio-economic development

PRESIDENTIAL NATIONAL COMMISSION • Purpose: Facilitate the development of an inclusive information society by promoting the uptake and usage of ICT for improved socio-economic development and research. • Planning, Coordination and Evaluation (PCE) ensures that South Africa has proactive and progressive national plans on Information Society and Development, with sectoral, provincial and local government inputs. It also assesses whether policies and legislation are conducive to development of an inclusive Information Society, and assesses the impact of ICT programmes and projects. • Information Society and Development (ISAD) Cluster supports the effective and efficient functioning of the ISAD institutional mechanisms such as the Inter-Ministerial Committee on ISAD, the ISAD Inter-Governmental Relations Forum (IGRF), FOSAD ISAD Cluster, and the IGRF Technical Committee. • e-Applications facilitates the implementation of Information Society related projects and programmes in order to attain the sectoral targets of the ISAD Plan and maximises the benefits of the Information Society for the development of women, children, youth, people with disabilities as well as poor communities. • Presidential National Commission Operations provides responsive, timely and comprehensive strategic and administrative support that strengthens the PNC on ISAD as a knowledge-driven organisation. A global leader in the development and use of Information and Communication Technologies for socio-economic development

PRESIDENTIAL NATIONAL COMMISSION KEY ACHIEVEMENTS SUMMARY • ICT Rural development • The ICT Rural Development Strategy was developed and presented to the ISAD Multi-stakeholder Forum and Outcome 7 Executive Implementation Committee for discussion. The strategy was further presented at the DG’s Implementation Cluster Committee and was adopted. • An implementation plan was developed, and its implementation has commenced. • e-Applications for health • The consultations with the national and provincial Departments of Health resulted in buy-in by provinces and the national Department of Health on the project. This led to the Department of Health providing information required for the audit on e-applications. • An audit on current e-applications in health was conducted in provincial Departments of Health and an audit report was prepared and analysed. • The proof of concept (the primary health care information system solution that was developed) for e-applications was tested on Jooma Open Source and in the internal test environment it was demonstrated to be feasible. A global leader in the development and use of Information and Communication Technologies for socio-economic development

PRESIDENTIAL NATIONAL COMMISSION KEY ACHIEVEMENTS SUMMARY • e-Literacy training for youth • e-Literacy training programme of young people was implemented. 1050 young people participated in the e-literacy training programme during the reporting period. • WSIS related programmes • The WSIS coordinating mechanism was developed and key WSIS (ISAD) programmes were collated. • WSIS related programmes based on the outcomes of WTDC-10 were developed together with the implementation plan and institutional mechanism. • A National Report on WSIS (ISAD) Programmes was developed. • Country Information Society Readiness report • The Country information society report was prepared and published in August 2011. • The report included primary studies in sectors where secondary data were unavailable. A global leader in the development and use of Information and Communication Technologies for socio-economic development

PRESIDENTIAL NATIONAL COMMISSION KEY ACHIEVEMENTS SUMMARY • ISAD Research Framework Adopted • The ISAD Research Framework was prepared and adopted during the reporting period. • 5-10 year Foresight and Planning • An analysis of the top ten ICT countries in the world was completed for benchmarking. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INTERNATIONAL AFFAIRS & TRADE • Purpose: Ensure alignment between South Africa’s international activities and agreements in the field of ICT and South Africa’s foreign policy. • This programme is divided into two (2) sub-programmes: • International Affairs coordinates the functions and responsibilities of the department to meet South Africa’s international ICT obligations. • ICT Trade/Partnerships develops and advances South African interests in international trade forums through participation in World Trade Organisation ICT-related initiatives and other international trade agreements. The sub-programme also promotes the interests of the South African ICT sector and developing countries through these forums. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INTERNATIONAL AFFAIRS AND TRADE KEY ACHIEVEMENTS SUMMARY • Strengthening of SADC ICT Structures • The Department developed a position paper on the SADC programme of action in relation to interconnection and a regulatory framework. • The Department actively participated in the SADC ICT Ministerial meeting in Gaborone, Botswana. The meeting adopted ten positions, out of which the DoC was appointed to the Africa desk as the Programme Management Officer (PMO) to lead the programme of SADC decisions. South African interests were reflected in the decisions of the SADC meeting. • The DoC hosted the 1st Southern African Internet Governance Forum as per mandate of the SADC ICT Ministerial decision in preparation for the Global IGF hosted by Kenya in September 2011. • South Africa developed the DTT draft terms of reference (TORs) for the establishment of the BDM Desk within the SADC Secretariat. • With regard to Regional Connection, South Africa also hosted the SADC regional infrastructure development master plan workshop to update the RSIDP. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INTERNATIONAL AFFAIRS AND TRADE KEY ACHIEVEMENTS SUMMARY • Strengthening of African Multilateral Organisations • The DoC developed a position paper for the AU Ministers of Communications and Information Technology (CIT) with the primary focus on the implementation of the Oliver Tambo Declaration. • The DoC played a key role in South Africa’s position provided to the AU Commission (AUC) on the draft AU framework on cyber legislation. • In July 2011 the DoC participated at the PAPU Administration Council and African Support Committee, which South Africa chairs. A key outcome was the development of the PAPU programme of action before the next UPU Congress in 2012. • The Department participated at the ATU Digital Migration and Policy Summit in Nairobi, Kenya from 29 November to 01 December 2011, where it showcased South Africa’s progress in digital migration as well as positioned the country favourably as an electronic manufacturing hub. • Strengthening Bilateral Relations with priority countries • The Department engaged various countries (Egypt, Algeria, Angola, Ghana, Tunisia) to strengthen relations further through the formation and implementation of strategic partnerships. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INTERNATIONAL AFFAIRS AND TRADE KEY ACHIEVEMENTS SUMMARY • Strengthening South-South and North-South bilateral relations • Substantial progress was made with regard to the South Africa/Cuba agreement on cooperation, which will pave the way for the implementation of the proposed training programme. • A South African training programme needs assessment was conducted with a view to centralising ICT training and capacity-building at NEMISA. The training programme was implemented and officials attended training on e-Skills, broadband and DTT in partner countries. • Furthermore, the implementation of the first phase of the training programme by South Koreans was facilitated and monitored and as a result two senior officials of the DoC were sent to Korea for training in broadband and digital convergence policy. • Trade and Investment • The Department developed an ICT trade and investment strategy which was consulted with the Trade & Investment South Africa (TISA) in the DTI so as to ensure alignment with the ICT trade related projects that the DTI is involved in. • Areas of ICT trade cooperation within Africa bilateral and multilateral were identified with Angola, Ghana and Egypt. MOU’s of the above-mentioned countries were signed and Programmes of Cooperation (POC) for Egypt and Angola were developed and communicated to counterparts and the DoC is currently awaiting feedback from them. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT INTERNATIONAL AFFAIRS AND TRADE KEY ACHIEVEMENTS SUMMARY • Participation in International Fora • DoC participated in the UPU Council meetings in Berne and thereafter hosted the African Support Committee meeting in preparation for the UPU Congress. • South Africa hosted the ITU-Kaleidoscope conference which took place in December 2011. This event was intended to stimulate interest amongst academia in the work of the ITU, and included awards for selected academic papers on standardization issues. • The Department participated in the ITU Council meeting which dealt with a number of the preparations for the World Radio Conference, the WCIT and WTSA and implementation of the decisions of the PP-10 conference. • A SADC Position paper for WRC-12 was developed and the SA position was incorporated into the SADC position paper. DoC participated in the WRC 2012 with a delegation led by the Minister. • Draft African position papers for WCIT and WTSA were also developed and South Africa was the Vice Chair of the WCIT and WTSA African Preparatory Meeting in Egypt. • South Africa hosted and chaired the African Support committee in preparation for the UPU Congress. SA made key inputs for the UPU towards the development of a common African position. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT ENTERPRISE DEVELOPMENT • Purpose: Oversee and manage government’s shareholding interest in public entities. Facilitate growth and development of the small, medium and micro enterprises (SMMEs) in the ICT sector. • The programme consists of two sub-programmes: • Public Entity Oversight provides oversight over state owned enterprises by managing government’s shareholder interests in public enterprises in a manner that supports the attainment of key national goals and strategic priorities. • Small Medium and Micro Enterprise Development focuses on facilitating the growth and development of ICT SMMEs. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT ENTERPRISE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • SOE OVERSIGHT • As part of strengthening oversight within the state-owned entities we have prioritized the filling in of vacancies at the leadership level including the appointment of boards. • Amongst other activities that were undertaken as part of an on-going oversight and monitoring consisted of three critical areas, i.e. Planning process, monitoring and compliance, corporate governance and financing of entities . • Planning Process, Monitoring and Compliance • This process was undertaken to ensure that the Departmental plans and those of entities are aligned to avoid areas of duplication and create synergies that will assist the entire portfolio with the effective utilization of resources. • Shareholder compacts were signed and regular monitoring was performed to ensure that the entities were able to execute projects and programmes in line with their plans. • Monitoring was performed through analysis of quarterly reports and engagement with entities through bilateral meetings to address areas of concerns. • Annual reports and financial statements were submitted and tabled in parliament. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT ENTERPRISE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • SOE OVERSIGHT (continued…) • Corporate Governance • Corporate governance remains a critical component to ensure the effective performance and sustainability of the SOEs. In the regard, we have: • Reviewed the articles of association of the entities to ensure that they are aligned to the New Companies Act and Good Governance prescripts. • Facilitated the development of action plans to address specific audit findings of all entities to prevent recurrence of adverse audit findings and PFMA transgressions. • We continue to monitor compliance levels at the entity level and ensure that the entities are operating in line with the new developments in the legislative environment. • Finance of Entities • During the year under review we have facilitated the following: • Development of budgets for entities and also ensured that their additional funding requirements were submitted to National Treasury • Funds due to the entities were all transferred in line with the requests. A global leader in the development and use of Information and Communication Technologies for socio-economic development

ICT ENTERPRISE DEVELOPMENT KEY ACHIEVEMENTS SUMMARY • SMME Development • The Department has adopted a deliberate program of ensuring that SMMEs in all provinces and Cooperatives are afforded an opportunity to grow and develop in the ICT sector. Some of key projects included: • Development of plans to ensure that SMMEs are able to benefit from the STB manufacturing value chain. • Exploration of models to built incubation hubs in under-served provinces to ensure that the growth and sustainability of SMMEs in these areas is enhanced • Training of young people to run and operate e-cooperatives, i.e. internet cafes, computer refurbishment and re-sale outlets. A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE & ADMINISTRATION • Purpose: Strategic support to the ministry and overall management of the department. • Key Functions: • Human Resource Management • Strategic Planning and Monitoring • Communications and Marketing • Intergovernmental Relations • Financial Management A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE AND ADMINISTRATION KEY ACHIEVEMENTS SUMMARY • Human Resource Management • The Department undertook an extensive organizational structure review which was approved by Minister and submitted for MPSA concurrence. • The following HR Policies were reviewed: • Performance Management, • Education, Training and Development, Bursary Policies, Career Management and Internship • Recruitment and Selection, • Special Leave. • The Department’s Internship Programme was successfully rolled-out. • With regard to the target of 50% gender representation at SMS level as per cabinet directive, the Department has achieved 40% female representation at SMS level. • With regard to the target of 2.2% people with disabilities, the Department achieved 1.6% representation of people with disabilities within the Department. • Annual assessments for the 2010/11 financial year were concluded and 223 out of 306 employees received performance incentives. • 190 staff members attended one or more training interventions although only 181 were planned as per the WSP. • Although the Department did not fully implement the Leadership Development Programme, extensive work was done in this regard and the programme will be fully rolled-out in the 2012/13 financial year. A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE AND ADMINISTRATION KEY ACHIEVEMENTS SUMMARY • Strategic Management • The Department complied with the requirements of the PFMA with regards to the evaluation of the organisational performance, which includes the submission of the quarterly performance reports, against strategic plan, to the Executive Authority. • The Department also established a fully functional Organisational Assessment Board which assessing organisational performance against the strategic plan on a quarterly basis and makes recommendation to improve performance. • The Department further complied with the requirement of the National Treasury with regards to the Framework for the development of the Strategic Plans and Annual Performance Plans. • The 2010/11 Annual Report was timeously developed and table in Parliament. • Although delays were experienced with the roll-out of the Electronic Performance Management System (e-OPMS), the Department, substantial progress was made and the e-OPMS will be fully rolled out in the 2012/13 financial year. • Internal and external communications • The Department developed and implemented the Communications Strategy through relevant interventions in both Internal and external Communications plans to supports the priorities and focus areas of the Department and government. Such intervention include amongst others: A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE AND ADMINISTRATION KEY ACHIEVEMENTS SUMMARY • Financial Management • In an effort to Implement and ensure compliance with sound financial management practices and other related services, within prescribed legislative requirements, the Department has reviewed relevant financial, delegations and procedures and ensured that all transactions were undertaken in line with provisions of the PFMA. • Furthermore, the following polices were reviewed: • The cell phone policy • The entertainment and catering policy • The debt management policy • Banking and cash policy, • The Assets management strategy and the Acquisition Plan was approved and incorporated into the strategic plan of the department. • The 2010/11 Annual Financial Statements were compiled and submitted to Treasury and Auditor General. A global leader in the development and use of Information and Communication Technologies for socio-economic development

Budget vs Actual Performance for the 2011/12 Financial Year 40 A global leader in the development and use of Information and Communication Technologies for socio-economic development

STATEMENT OF FINANCIAL PERFORMANCE 41 A global leader in the development and use of Information and Communication Technologies for socio-economic development

APPROPRIATION STATEMENT 44 A global leader in the development and use of Information and Communication Technologies for socio-economic development

SUMMARY OF ECONOMIC CLASSIFICATION 45 A global leader in the development and use of Information and Communication Technologies for socio-economic development

DETAILS OF TRANSFER PAYMENTS 46 A global leader in the development and use of Information and Communication Technologies for socio-economic development

DETAILS OF TRANSFER PAYMENTS 47 A global leader in the development and use of Information and Communication Technologies for socio-economic development

ADDITIONAL INFORMATION FOLLOWING AG’s PRESENTATION • Additional information pertaining to the following areas: • Governance • Irregular Expenditure • Clean Audits • Leadership • Human Resources • Performance Agreements • Vacancies • Organizational Structure 48 A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE (1) • Organisational Performance Assessment Board • Chaired by the DG and attended by all DDGs • Purpose: Met at the end of every quarter to interrogate quarterly performance information with specific reference to quarterly targets that are delayed or where there is no to minimal progress. Makes recommendations to urgently address bottlenecks and implementation challenges. • In the 2010/11, this area has an audit finding however it has been rectified and the OPAB has had a positive impact in the measurement of performance information. • Audit Committee • The effectiveness of the Audit Committee was raised as a concern by the AG in the 2010/11 FY which has now been corrected. • Has 3 independent members from outside the public service • Met five times • Complied with oversight requirements of PFMA i.e. • Reviewed reliability of financial statements & quarterly performance reports • Reviewed effectiveness of internal controls, governance and risk management • Supervised internal audit • Liaised with Auditor-General, Senior Management & Executive Authority 49 A global leader in the development and use of Information and Communication Technologies for socio-economic development

GOVERNANCE (2) • Risk Management Committee(RMC) • Has two independent members from outside the public service. One is Chairperson • Already met twice • Shares its report with the Audit Committee • Focus is on embedding risk management throughout the Dept: • Focused strategy, risk assessments and risk mitigation plans, monitoring of implementation. • Organisational Performance Improvement Plan • The Department is currently implementing an Organisational Performance Improvement Plan (OPIP) which is aimed at improving Organisational Performance as a whole through implementing and monitoring interventions in the following key focus areas: • Strategic Management • Organisational Culture • Leadership and Management Development • Governance 50 A global leader in the development and use of Information and Communication Technologies for socio-economic development

DoC LEADERSHIP TEAM