Presentation to the Portfolio Committee on Agriculture and Land Affairs

1. Presentation to thePortfolio Committee on Agriculture and Land Affairs — ANNUAL REPORT 2005/06 — 14 November 2006 CAPE TOWN

2. The delegation • Deputy Directors-General • Chief Directors

3. Director General’s OverviewMasiphula M. Mbongwa • Agriculture Sector Plan • Old/new departmental structure • Priority areas • Alignment of programmes between the DoA and DLA • Alignment of agricultural public entities to the DoA

4. Old DoA structure MINISTER NAMC, ARC, LAND BANK, OBP LTD PPECB, NCERA FARMS (PTY) LTD DIRECTOR-GENERAL BRANCHES Agricultural Economics & Business Development Agricultural Production & Resources Management Planning, Monitoring, Evaluation & Communication Operations Management & Governance Financial Management PROGRAMMES Farmer Support & Development Agricultural Production Communication & Information Management 2 5 8 Agricultural Trade & Business Development Sustainable Resources Management & Use Programme Planning, Monitoring & Evaluation 1 3 6 9 Administration and Governance Financial Management National Regulatory Services Economic Research & Analysis 4 7

5. New DoA structure MINISTER NAMC, ARC, LAND BANK, OBP LTD PPECB, NCERA FARMS (PTY) LTD DIRECTOR-GENERAL Chief Operations Office Chief Audit Office Chief Communications Office Chief Projects Office Chief Economics Office BRANCHES Livelihoods, Economics and Business Development Bio-security and Disaster Management Production and Resources Management Sector Services and Partnerships Corporate Services CHIEF DIRECTORATES Plant Health & Inspection Services Agricultural Production Sector Services Human Resources, Legal and Security Services Livelihoods, Development Support Engineering Services and Resources Management Financial Management Trade and Business Development Food, Animal Health and Disaster Management International, Intergovernmental and Stakeholder Relations Economic and Statistical Services

6. Agricultural Priority Areas • NSP1 Broad based AgriBEE and integrated food security • NSP2 Sector investment, labour absorbing and competitive value chains • NSP3 Bio-security and disaster management • NSP4 Research, extension, education and training • NSP5 Cooperative government and building of partnerships

7. DLA/DoA Leadership Alignment Vision “A Leadership and Institutional alignment to fast track agrarian reform to achieve a new trajectory that will lead to equitable and sustainable socio –economic development”

8. 1 GOVERNMENT WIDE PRIORITIES & PROGRAMS DEPARTMENTAL PRIORITY SETTING & PERFORMANCE REVIEW PROCESS GOVERNANCE PROGRAMMATIC LEVEL INFORMATION & KNOWLEDGE MANAGEMENT POLICY RESEARCH & DEVELOPMENT 3 2 5 6 4 Alignment Pillars The following strategic pillars were identified as critical in ensuring alignment between the 2 Departments:

9. Program Types Key DLA/DoA Programs Budgetary Service Delivery Broad Governmental Proposed programs DoA Programs DLA Programs ASGISA Livelihoods, economic and business development Restitution Information & Regulatory Services Land & Tenure Reform Spatial Planning & Information Bio security & disaster Management CASP* LRAD Corporate Services Corporate Services Production & resource Management Cadastral Survey Farm Dweller Programs ISRDP Deeds Communal Areas Programs Sector services & partnerships Agrarian Development Zones Surveys & Mapping Bio fuel developmental programs * CASP has 70% contribution to LRAD

10. BRANCH: Agricultural Economics and Business Development Phil Mohlahlane PROGRAMME 2 Farmer Support and Development PROGRAMME 3 Agricultural Trade and Business Development PROGRAMME 4 Economic Research and Analysis

11. Programme 2: Objectives and indicators

12. Programme 2: Objectives and indicators

13. Programme 3: Objectives and indicators

14. Programme 4: Objectives and indicators

15. Programme 4: Objectives and indicators

16. Njabulo Nduli/Eben Rademeyer Branch: Agricultural Production and Resources Management PROGRAMME 5 Agricultural Production PROGRAMME 6 Sustainable Resources Management and Use PROGRAMME 7 National Regulatory Services

17. Programme 5: Objectives and indicators

18. Prog 6: Objectives and indicators

19. Programme 7: Directorate Plant Health OUTPUT STATUS Plant pest risk management systems and legislation • Status workshops – seed • Standard import condition Lesotho and Swaziland • Exotic fruit fly detection program • Plant health policy for SA • Plant Pest Act revision • Citrus Foundation Block, cotton regulations

20. Programme 7: Directorate SAAFQIS OUTPUT STATUS Effective and improved border control, national plant and plant product inspection services and plant and animal quarantine • SADC engagement on ISPM 15 – local packaging material • EC – small farmers – Mthatha Fresh Produce Market • Six manuals and SOP • Reports services rendered / retained regulated articles

21. Programme 7: Animal Health OUTPUT STATUS • Avian Influenza • Eradicated from the Eastern and Western Cape. Regained the free status • National surveillance programme • Bio-security measures for keeping poultry • Amendment import requirements for live birds, ostriches and products • Drafted and finalised the A1 contingency plan (in consultation with DoH) Animal Diseases risk management systems, policies, legislation, standards, protocols and agreements

22. Programme 7: Animal Health OUTPUT STATUS • Classical Swine Fever • Contained in the Eastern Cape through road blocks, movement control, public awareness. Great effort put in coordinating out control efforts with Lesotho due to Proximity to infected areas • Drafted SOP’s compartments with an effort to facilitate trade to our neighboring countries.

23. Prog 7: Food Safety & Quality Assurance OUTPUT STATUS • Published for comments 2nd time and consultations with role players held Jan-March, comments incorporated in final document. • Publication of Pesticide Policy and the Animal Feed for public comments approved by the Minister. • Stock Remedies policy recommended by DEXCO for publication for public comments/consultation. • Internal processes of Fertiliser policy development on-going Liquor Products Amendment Bill Review of Act No. 36 of 1947

24. Prog 7: Food Safety & Quality Assurance OUTPUT STATUS A task team to develop a Food control system for SA was established made up of the three key stakeholders – DoH, DoA and the dti Food Control legislation

25. Ms Vangile Titi BRANCH: Planning, Monitoring, Evaluation & Communication PROGRAMME 8 Communication and Information Management PROGRAMME 9 Programme Planning, Monitoring and Evaluation

26. Programme 8: Objectives and indicators

27. Programme 8: Objectives and indicators

28. Programme 9: Objectives and indicators

29. Tommie Marais ADG: FINANCIAL MANAGEMENT PROGRAMME 1 Administration

30. ACTUAL SPENDING PER PROGRAMME PROGRAMME ACTUAL % OF SPENDING TOTAL R’000 • Administration 159 758 8,5 • Farmer support 696 728 37,1 • Agricultural trade 38 764 2,1 • Economic research 17 760 0,9 • Agricultural production 414 250 22,1 • Sustainable resources 168 206 9,0 • Regulatory services 267 331 14,2 • Communications 108 716 5,8 • Programme planning 6 495 0,3 Total 1 878 008 95,4 Less: Appropriation 1 967 768 Underspending 89 760 4,6

31. UNDERSPENDING - Attributed to the following • Vacancies • Carry through effect on spending items such as administration, inventories and equipment • Invoices not submitted timeously • Outstanding claims for classical swine fever • Steps taken to prevent a reoccurrence

32. REPORT OF THE AUDITOR-GENERAL • VOTE 26: AGRICULTURE - Unqualified report - Emphasis of matter • Revenue AGRICULTURAL DEBT ACCOUNT - Qualified report Does not comply with International Accounting Standards - Steps taken to rectify the situation

33. AUDIT COMMITTEE REPORT Monitored the following: • Compliance with the internal audit charter • Compliance with PFMA requirements • Audit plan and risk assessment • Interacted with the external auditors • Adequacy of internal controls Reports of the Internal Audit Unit were reviewed. No serious problems with regard to internal controls or cases of non-compliance with the PFMA were revealed.

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