Department of Transport Support to the C-BRTA Presentation to the PPCOT 20/04/2010

1. Department of Transport Support to the C-BRTA Presentation to the PPCOT 20/04/2010

2. Presentation Outline • Background • DoT Support to the C-BRTA • Structured DoT Forums to support the entities

3. Background The C-BRTA Legislative Mandate The Act provides for the co-operative and co-ordinated provision of advice, regulation, facilitation and law enforcement in respect of cross-border road transport by the public and private sectors, and to provide for the establishment of the Cross-Border Road Transport Agency so as to: • Improve the flow of freight and passengers in the region; • Introduce regulated competition in cross border road transport; • Reduce operational constraints for the cross border road transport industry as a whole; • Improve and strengthen the capacity of the public sector in support of its strategic planning, Enabling and monitoring functions; and • Empower the cross border road transport industry to maximise business opportunities.

4. Background Objectives of the C-BRTA • Through the Act, the C-BRTA objectives are regulation, facilitation, law enforcement and providing advice to the Minister in respect of cross-border road transport by the public and private sectors. The role of Public Entity Oversight (PEO) Branch • The PEO was created to oversee public entities’ compliance with government policy in relation to their strategies, business plans, corporate governance, financial management and operational plans through monitoring and evaluation processes. • In executing its oversight role, the public entities that are facing challenges that affect its service delivery need to be assisted to execute their mandates.

5. DOT SUPPORT TO THE C-BRTA Governance Matters Appointment of the Chief Executive Officer • CBRTA has been without a CEO since the departure of its CEO in May 2009. • A temporal intervention was made by the Board by resolving to appoint one of the members of the Board (Ms Nobuhle Ally) to act in the position until the process of appointing a new CEO has been finalized. • The Board commenced with the recruitment process to fill-in the position in July 2009 and completed it in October 2009. • Mr Sipho Khumalo has been appointed as the CEO of CBRTA during the April 2010. Filling in of vacancies in the Board of C-BRTA • The process of appointment of the new members for the Board of the CBRTA commenced in August 2009. 5

6. DOT SUPPORT TO THE C-BRTA Due Diligence/ review of the C-BRTA The C-BRTA faces challenges that require the Department of Transport intervention in taking the organisation forward. Some of the challenges facing the C-BRTA as outlined in the 2009/10 Strategic Plan are the following:  • High Management turnover; • Higher increase on overhead costs than revenue; • Limited revenue streams; • Non compliance with corporate governance matters; • Resources deteriorating and reinvestment plan non existent; • Lack of planning, risk management and performance culture; • Qualified audits in the past years since 1998. The purpose of the review is assess the extent of the challenges facing the C-BRTA with an emphasis on the future role of the C-BRTA within the transport industry. 6

7. S DOT SUPPORT TO THE C-BRTA The review will take into account the following issues: • The C-BRTA’s performance since 1998 taking into account its history and past performance as measured against its mandate, objectives and functions. • Asses whether the advice provided by the C-BRTA to the Minister on cross border road transport policy is relevant, informed, independent as well as its impact and usefulness. • Assess the level and the existence of collaborations and partnership with other stakeholders within South Africa and SADC and whether they are fostered and maintained. • Assess the future role of the C-BRTA within the Transport industry. • Assess the C-BRTA’s previous and current corporate business plans, particularly with regard to the C-BRTA’s strategic thrusts. • The role played by the Board of the C-BRTA in providing strategic direction to C-BRTA. • Quality of management of the C-BRTA. • The C-BRTA’s operations as well as the structure and competences required from the staff. 7

8. DOT SUPPORT TO THE C-BRTA Border Control Framework The aim was to: • Review the existing mandates relating to border control, including the roles, responsibilities and inter-relationships between the various organs of state and governance structures regarding border control and management. • It also discusses the key international and regional agreements and protocols on this matter as well as national policies and procedures. • Implementation gaps and challenges were identified, based on the analysis of documents and the results of interviews with key stakeholders. 8

9. DOT SUPPORT TO THE C-BRTA Findings and recommendations relating to the C-BRTA •  C-BRTA is not represented at the One Stop Border Post (OSBP) programme. The aim of the OSBP is to enhance border security and trade chain security to reduce waiting time for vehicles at borders and reduce transport costs. Implementation of the OSBP involves developing separate facilities for processing passenger and freight traffic and putting in place multinational coordinating structures to integrate and streamline cross-border freight management and to make it more efficient (Lebombo/Ressano-Garcia border post with Mozambique). • C-BRTA is not represented at the BCOCC • In terms of issuing permits/ licences to taxis a strategy is required to have advanced information in terms of road traffic. An information system should be in place to ensure proper allocation of resources and management of traffic flows to avoid congestion and possibility of corrupt practices. • In terms of traffic flow and management, a model is in the process of being developed to manage traffic flows at the Lebombo, Beitbridge and Maseru borders. This will culminate in Standard Operating Procedures that may serve as a model for other border posts. The DoT and C-BRTA should play a leading role in this regard.

10. Structured Forums to support the public entities Public Entity Oversight Committee (PEOC) • The PEOC is a sub-committee of the DoT EXCO has been established to address and integrate matters of oversight over public entities with line managers and DoT representatives on Boards of public entities. • The PEOC’s are held to allow entities to present their strategic plans and Performance Agreements to the line function and public Entity Oversight Branch. • It is chaired by the DDG Public Entity Oversight and Border Control Operations. • PEOC meetings are also held to address the specific challenges facing the entities.

11. Structured Forums to support the public entities Governance Forum • Chaired by the DDG PEO&BC and attended by Company Secretaries of entities. Meetings are held per quarter. • The issues discussed are related to governance of entities and challenges experienced by entities in this regard. DG/CEO Forum • Chaired by the DG and attended by the CEO’s of the entities. • With the appointment of the DG the forum has now been formalised. • Two meetings were held. During the first meeting the strategic priorities of the DoT were presented to the CEO’s of entities. The other meeting was held to discuss inputs to the Budget Vote of the DoT. It was suggested that the meetings will be held at the end of each quarter where CEO’s will present the performance progress with regard to the performance targets outlined in the Performance Agreements.

12. Structured Forums to support the public entities Minister/Chairperson Forum • It is chaired by the Minister of Transport and attended by the Chairpersons Boards of entities. One meeting was held in March with entities to brief the Minister on the core business of each entity, their challenges and the required intervention from the DoT. DoT Representative on the Board of the C-BRTA • The Minister has appointed a DoT representative on the Board of the C-BRTA to provide support and to ensure alignment of C-BRTA strategic direction with the DoT.

13. THANK YOU