FREEDOM PARK PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS & CULTURE

1. PRESENTED BY THE CEO OF FREEDOM PARK MS JANE MUFAMADI FREEDOM PARK PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS & CULTURE

2. PRESENTATION OVERVIEW • REPORT ON THE CLOSURE OF THE RECONCILIATION ROAD • FREEDOM PARK UPDATES • CORPORATE GOVERNANCE • NEW APPOINTMENTS • LABOUR RELATIONS MATTERS • PROGRESS ON PERFORMANCE AGAINST SET TARGETS • KEY HIGHLIGHTS TO DATE • FINANCIAL SITUATION • CHALLENGES AND POSSIBLE SOLUTIONS

3. REPORT ON THE CLOSURE OF THE RECONCILIATION ROAD

4. CLOSURE OF THE RECONCILIATION ROAD • Freedom Park signed and started implementing an MOU with Voortrekker monument(VTM) and Die Erfstigting on the 21stJune 2006 respectively. • After signing of this MOU, several joint programmes like celebration of youth day, Reconciliation day and heritage day took place. • Other programmes include: • The annual SADF Wall of Remembrance event each year with former SADF veterans of the liberation movements and the former TBVC veterans. • The annual Muller Potgieter race • Cross referral of visitors (approximately 300 guests per month navigated through the reconciliation road) • Ubuntu and human chain events • Freedom Park staff members having lunch at VTM • The construction of the Reconciliation Road was part of the implementation of the MOU. • The Road was subsequently officially opened by the President of the Republic of South Africa, Honourable Jacob Zuma on the 16th December 2011.

5. RECONCILIATION ROAD • After the opening, it was agreed to review the MOU in order to include operations and sharing of visitors through the Reconciliation road. • On the 25th April 2014, a revised MOU was signed with Die Erfstigting • A revised MOU was also sent to the Voortrekker Monument in 2014 but they indicated that they could not sign an MOU with an Acting CEO, they would rather wait until a permanent CEO is appointed for Freedom Park. • On the 13th October 2014, Freedom Park received a letter from VTM indicating that the Reconciliation road has been closed. • A meeting was scheduled with the Management and took place on the 31st October 2014 • Freedom Park was informed that the matter is mainly between the Monument and DAC. Who made a commitment to fund the operations but did not fulfil this commitment.

6. RECONCILIATION ROAD • Seeing no solution , Freedom Park proposed that the two Councils (VTM and Freedom Park) should meet. • The meeting never took place. • Communicated the same with DAC to intervene on the matter given the significance of the road. • A meeting between DA “shadow Minister” Mr Winston Rabotapi, and his deputy Dr Allen Grootboom, Freedom Park officials Mr Khorommbi Matibe (HOD Public Participation) and Mr Regardt Gouws (CFO), Voortrekker Monument Managing Director Ms. Sonja Lombard and Mrs. Annatjie Erasmus as well as DAC Director of Heritage Mr Irwin Langerveld, took place on the 27th of February 2015 at Voortrekker Monument.

7. RECONCILIATION ROAD • After several deliberations on the matter DAC proposed the following solutions to the challenges at hand: • Transferring the funds to Freedom Park for Freedom Park to extend its security services to both the affected entrance gates • Freedom Park to enter into a MOU with Voortrekker Monument so that Voortrekker Monument invoices Freedom Park for the expenses incurred on Reconciliation Road. • DAC enters into a Public Private Partnership arrangement with Voortrekker Monument so that through the agreement, DAC can be able to release funds • DAC releases funds to Voortrekker Monument as a conditional grant. • It was further resolved that interim arrangements should be put in place get the reconciliation road opened sooner. • It was further resolved that the long term solution for the Public Private Partnership arrangement between DAC and Voortrekker Monument should be pursued however long it might take.

8. FREEDOM PARK UPDATES

9. CORPORATE GOVERNANCE • The Minister appointed the new Council with effect from the 1st of September 2015. • The new Council began its work in earnest in October 2015. • The Council is comprised of 9 members.

10. SENIOR MANAGEMENT APPOINTMENTS • The new Council appointed a permanent CEO with effect from January 2016. • New HOD Parks Operations was also appointed and commenced in January 2016. • Permanent CFO appointed and to commence duty with effect from 1st February 2016.

11. LABOUR RELATIONS MATTERS • Labour relations challenges significantly improved with a trust relations between staff and management gradually growing. • Successfully concluded all labour dispute matters both internally and at CCMA and so far all cases were ruled in favour of Freedom Park. • Have concluded all civil and legal cases, where we lost two.

12. PROGRESS ON PERFORMANCE AGAINST SET TARGETS 2015/16 • Freedom Park has shown significant improvement and maintained an average achievement of 71% against the set targets thus far this financial year: • April to June 2015: 69,5% • July to September 2015: 71% • October to December 2015: 72,4%

13. PERFORMANCE OVER THE LAST 3 YEARS Freedom Park achieved an 8% increase from the 2013/14 (65%) to 2014/15 year (73%)

14. KEY HIGHLIGHTS TO DATE

15. KEY HIGHLIGHTS • 288 names were approved for inscription on the Wall of Names at Freedom Park • Completed 8 research paperswith 6 of them presented at national and international conferences • 6 opinion pieces were published at National media channels • Launched the Freedom Park book entitled: “Freedom Park, a place of Emancipation and Meaning” • Successfully hosted a media networking function which attracted a whole host of media houses • Hosted the Ambassadorial networking session, updating diplomatic missions on Freedom Park programmmes and activities and inviting Missions to collaborate with Freedom Park on issues central to our mandate

16. KEY HIGHLIGHTS • Archived and loaded 1078 archival materials on Vernon Electronic archiving system. • Successfully implemented our time travels programmes for the following: • 50 Year Celebration of the Freedom Charter in Kliptown – Soweto; workshops in Kimberly, KZN and Western Cape; Jopie Fourie Primary School and Rebanelaka in Mamelodi • Successfully launched an exhibition on the 30th anniversary of the Mamelodi Massacre in partnership with Mamelodi community and Ditsong. • Received a donation for our archives from Former President Kaunda of Zambia • Hosted highly successful dialogues with several veterans of the struggle, including Prof. Dennis Goldberg.

17. FINANCIAL SITUATION

18. REVENUE PROJECTIONS Operational Grant Freedom Park’s operational grant has not increased in line with its organisational development as well as inflation. The grant allocation has decreased by 7% from the 2014/15 year to the 2016/17 year. Therefore, alternative funding is essential for the sustainability of Freedom Park. Fundraising efforts will be intensified from the 2016/17 year onwards. The following graph depicts the growth trajectory of the grant received from DAC:

19. EXPENDITURE TRENDS – GRANT vs. OPERATIONAL COST • Due to the increase in the operational capacity of Freedom Park the operational expenditure of the Park has also increased together with the increases in employee costs. • The following table indicates the increases in operational and total expenditure of the Park for the next 4 years:

20. EXPENDITURE TRENDS – GRANT vs. OPERATIONAL COST • Operating expenditure has been reduced drastically over the MTEF period to cover the reduction in the operating grant. • This has left Freedom Park with a low budget to fund strategic objectives and growing maintenance costs. • Operating expenditure is only increased from the 2017/18 year matching the forecasted higher revenue targets.

21. OTHER INCOME SOURCES • Although Freedom Park revenue grew substantially percentage wise year on year, it was not enough to cover the over expenditure incurred on the operational grant. • Interest revenues generated by the capital grant were utilised to compensate for operational expenditure and inflation on projects. • The following table indicates the revenue projections for the next 3 years:

22. 2016/17 BUDGET

23. BUDGET COMPARISON

24. AUDIT REPORT

25. RESOURCE MOBILISATION (FUNDRAISING) • Identified fundraising as a key opportunity to unlocking funding for Freedom Park • Elevated the responsibilities to the CFO • Identified funding opportunities • Now busy with procurement processes to recruit a fundraising company on a commission based approach

26. KEY CHALLENGES & POSSIBLE SOLUTIONS • Infrastructure maintenance: maintenance and repair costs continue to increase dramatically due to increased wear and tear on Phase 1 structures and //hapo. Solution: Interest revenue accrued from capital budget to be allocated for infrastructure maintenance just to keep the park going. • High staff costs: only fill key strategic vacant posts and save costs from other posts • Increasing operational expenditure: continue to implement cost cutting measures as directed by National Treasury • Low revenue: invest significantly on marketing to increase tourist volumes and double the hosting of high premium events • Legal matters: expedite the conclusion of all legal matters

27. KEY CHALLENGES & POSSIBLE SOLUTIONS • Financial sustainability of Freedom Park: Explore alternative revenue sources including fundraising to fill the revenue gap • Accessibility and affordability: Creating a balance between revenue generation and access to the Park by ordinary South Africans • Misalignment of staff: undertake an internal realignment and deployment for staff (in progress). • Closure of the Reconciliation Road: Implement the DAC proposed solutions to the challenges without delay

28. THANK YOU