Presentation outline

National Youth Development AgencyPresentation to the The Portfolio Committee on Women, Youth, Children and Person’s with DisabilitiesCape Town11 August 2010

Presentation outline • Letter of invitation • Reporting to Portfolio Committee (For Minister Chabane) • Co-ordination of NYDA activities with the Department of Performance Monitoring and Evaluation ( For Minister Chabane) • NYDA progress report- Current financial year • NYDA progress report- 2009/10 (unaudited figures) • NYDA approach to mainstreaming Youth Development • NYDA loan recovery plan • Vacancies within the NYDA • Forensic Audit on former NYC

The Minister • Hon OC Chabane • Minister in the Presidency: Performance Monitoring and Evaluation • Cc: Mr A Lungisa: Chairperson of the NYDA • 27 July 2010 • Dear Hon Chabane • This letter serves to confirm that the Portfolio Committee on Women, Youth, Children and Persons with Disabilities will meet with the Minister and the National Youth Development Agency to receive a briefing on the following matters: • Clarification regarding the accountability of the National Youth Development Agency (NYDA) to Parliament, specifically the Portfolio Committee on Women, Youth, Children and Persons with Disabilities. • Clarify how the NYDA given its mandate and function co-ordinates its activities with that of the Department of Performance Monitoring and Evaluation and the National Planning Commission with specific reference to mainstreaming youth development. • Progress report on programmes offered by the NYDA along with the intended outcomes and outputs. • An indication of how the NYDA intended to mainstream youth development within Government’s existing programmes given the Committee’s prior reservations on this matter. • Progress report on the loan recovery plan, the number of intended beneficiaries that had received loans and the money recuperated to date. • Update on all vacancies and provincial offices. • Finalisation of legal matters related to the National Youth Commission and the outcome of the Auditor General forensic reports. • The Committee would also like to receive briefing on progress report related to programmes of the National Youth Development Agency. • The meeting is scheduled to take place on Wednesday, 11 August 2010 at V475, Old Assembly, Parliament from 09:30 – 11:00 in Parliament. • For enquiries contact the Committee Secretary, Neliswa Nobatana at tel:(021) 403 3840, fax: (021) 0866607716,cell: 083 709 8472 email:nnobatana@parliament.gov.za • Thank you, • ____________________________ • Ms B Thompson • Chairperson: Portfolio Committee on Women, Youth, Children and People with Disabilities

QUESTION:Clarification regarding the accountability of the National Youth Development Agency (NYDA) to Parliament, specifically the Portfolio Committee on Women, Youth, Children and Persons with Disabilities. The Presidency to respond

QUESTION: Clarify how the NYDA given its mandate and function co-ordinates its activities with that of the Department of Performance Monitoring and Evaluation and the National Planning Commission with specific reference to mainstreaming youth development. • The Presidency to respond

NYDA Progress report • On the 16th of June the NYDA celebrated its first anniversary. This was marked by an event in Thulamahashe stadium, BushBuck-Ridge, Mpumalanga. 25 000 youth attended the event. • During the period under review the NYDA also launched the Ride To School campaign in Jozini ( Kwa-Zulu Natal). 100 bicycles were handed to female learners who have to walk for more than 6km daily to and fro school. • The project is in line with the rural strategy for South Africa, led by the National Department of Transport • Over 18 000 participants were trained by the NYDA in partnership with the LOC as part of Africa’s 1st FIFA World Cup • Volunteers played a part in various ways including, welcoming visitors at the airport, showing spectators to their seats or escorting the VIP’s. • Process of establishing NYDA provincial structures currently underway, interviews held in 2 provinces, Northern Cape and Limpopo province

Progress report on programmes offered by the NYDA: outcomes and outputs: Current financial year

Progress report on programmes offered by the NYDA along with the intended outcomes and outputs.Progress Report: 2009/2010(unaudited figures)

Conti…..

QUESTION: Anindication of how the NYDA intended to mainstream youth development within Government’s existing programmes given the Committee’s prior reservations on this matter. • The NYDA Act and National Youth policy are both instructive on the NYDA’s role of mainstreaming youth development. To further this intention, the NYDA has undertaken a process to lobby all government departments to ensure that youth development issues are taken into account during the planning and implementation of activities. • The NYDA has developed and submitted guidelines for the establishment of youth directorates in government departments, whose role will be to ensure that youth development activities are integrated into government department activities. The guidelines have been submitted to Minister Baloyi and Minister Chabane. • The Development of the IYDS will further support and provide more guidance to government departments and other role players in the youth development sector on priority areas and sectors for effective youth development in the country • In additions, the NYDA continues to convene the Inter-Departmental Committee (IDC) on youth development. Government departments have representatives on this structure

QUESTION: Progress report on the loan recovery plan, number of beneficiaries that had received loans and the money recuperated to date • For the part two years the loan book has been deteriorating and management has identified key contributors to this deterioration and duly implemented measures to address these contributors; • Key contributors amongst other factors: • Poor administration of the loan book and after-care at the branch level; • Target market the NYDA is operating in (mostly start up businesses are funded); • Entitlement mentality of young people that this is Government money and therefore no need to repay; • Performance management of Enterprise Finance lending staff not directly linked to performance of loan book; • Market deterioration where NYDA clients operating making it difficult for them to repay loans; • Business failure • Inadequate supervision and support at the branch level • Time lag in loan processing The next table gives a high level analysis of the impairment provision for the last 3 to 4 years;

LOAN IMPAIRMENT ANALYSIS FOR PAST THREE(3) YEARS

LOAN IMPAIRMENT ANALYSIS FOR PAST THREE(3) YEARS (Continued)

LOAN REPAYMENT AND WRITE OFFS ANALYSIS FOR PAST FIVE (5) YEARS

Loan recovery plan: Micro Finance Measures have been put in place to improve loan recovery processes, i.e. • Credit policy - improved efficiency with a number of bottlenecks addressed through the policy. The collection process is outlined below • The engagement of an attorney to handle all loans above R30, 000. (the message sent out is that young people must be responsible for their actions) • The engagement of debt collectors who are paid a commission based on collections • New tools have been introduced that emphasise closer monitoring

Conti….. • There are currently 2146 active clients of which 1,760 are delinquent. • Number of debtors handed over to debt collectors and attorney

Additional measures to be implemented • Appropriate staffing structure – adequate staff is required for aftercare, loan officer support and supervision • Linking clients within the same value chain • Linking the microfinance clients to potential opportunities through the internal BOSS program • On the job training to be provided to field staff • An improved loan analysis process with a quick turnaround time • Arrangement with the relevant government departments for the cession of payments for contract loans (NB in the past contract loans were the worst performing where youth who had obtained loans absconded after pay-out)

Loan Recovery Plan: SME • The following measures have been put in place to address the issue of delinquent loans:

Cont……

Recovery measures to be Implemented on the SME Book • Legal action through attorneys with a reputable experience in collections • The implementation of interventions through other products available at the NYDA including BOSS, mentorship and vouchers • Reschedule the some loans to cater for smaller installments in line with the capacity of the business • Close monitoring through frequent visit • Close monitoring of the collection agents • Clients whose businesses have failed completely will have their loans written off • Linking the clients to opportunities within the NYDA

Vacancies • Due to the restructuring of the organisation, NYDA has put on hold any recruitment of full time employees until the process is completed. • To date, only the executive structure has been finalised and approved; and this will result in the appointment of 27 employees either internally or externally. These positions are what can technically be referred to as vacancies at this juncture

QUESTION: Finalisation of legal matters related to the National Youth Commission and the outcome of the Auditor General forensic reports. • The National Youth Commission Act, No 19 of 1996 was repealed on the 5th March 2010 and subsequently the National Youth Commission (NYC) ceased to exist. As required by the NYDA Act, particularly Section 21(2) the NYC assets, rights, obligations and liabilities have been transferred to the NYDA effective 1 October 2009. • The statutory audit was conducted on NYC as of the 31st March 2010 and the audited accounts will be included in the annual report of the NYDA. To date the opinion will likely be a qualification due to the fact that the comparatives were disclaimed in the prior year.

QUESTION: Outcome of auditor general forensic report • There has been no forensic audit performed on the former NYC by the Auditor General of South Africa • Given the concerns raised by the committee, the NYDA has commenced a process of conducting the forensic audit on the former NYC. • This process will be completed by 30th September and will be reported to committee during our next appearance

THANK YOU!!!!

Presentation outline