Department of International Relations & Cooperation Annual Report 2016/17

1. Department of International Relations & Cooperation Briefing to thePortfolio Committee on International Relations and Cooperation on the 2016/17 Annual Report 10 OCTOBER 2017

2. PRESENTATION OUTLINE • Part A – General Overview • Part B – Service Delivery and Performance Information • Part C – Financial Reporting Information

3. PART A: GENERAL OVERVIEW

4. GENERAL OVERVIEW • The Department tabled its budget proposal for consideration by the honorable Portfolio Committee on the 3rd May 2016. • The budget presented incorporated the budget reduction of R153 million in the 2016/2017 financial year which has a culminating effect of R1,8 million reduction over the MTEF period. • The 2016/2017 Annual Report reflects the collective and tireless efforts for the realization of the department’s mandate as outlined in the Medium Term Strategic Framework based on the National Development Plan 2030. • During the reporting period, DIRCO’s international relations program continued to be implemented within the global environment that was characterized by unpredictability, insecurity, a rise in terrorism, growing political volatility and right wing populism. • The international environment is compounded by the continuing hardships as a result of slow down in economic growth and lack of dwindling economic opportunities.

5. GENERAL OVERVIEW • Notwithstanding these challenges the following notable achievements are recorded: • Southern African Development Community (SADC) region remains amongst SA’s biggest trading partner. Consequently, SA’s objective of regional integration within SADC remain a priority in line with an integrated continent consistent with the African Agenda (Vision 2063) • South Africa’s Chairship of SADC for the period 2017/18 underlines its role in ensuring peace, stability and economic integration in our Region. • South Africa remains actively engaged in peace building initiatives in the region. • SA’s leadership and participation in BRICS, IBSA, FOCAC, etc., SA contributed to the realization of the NDP and the Agenda 2063 goals.

6. GENERAL OVERVIEW • SA continued to seek opportunities internationally through its leadership and participation in various sub-regional, regional and international organisations. • SA has continued to participate in the G20 to advocate the voice of Africa and the developing world. • SA continues as a member of the African Union Peace and Security Council. • As part of our active participation of the global governance agenda, SA, through its leadership of the G77, was key in the finalisation of the United Nations’ Sustainable Development Goals (SDGs), and the agreement on Financing for Development. • The breakthrough in the climate change in Durban COP17 was the foundation of the successful adoption of the Paris Agreement. • SA has consistently advocated for greater understanding of SA’s foreign policy through regular programmes of media briefings and public participation (PPPs).

7. GENERAL OVERVIEW • DIRCO continued to operate an internet based radio station with a growing listenership that extends across the Continent, and which is also available on DSTV’s audio bouquet Channel 888. • DIRCO continues to provide consular services to SA nationals abroad through its missions as well as Protocol services to the numerous visiting Heads of States and Government and foreign dignitaries and delegation remains ongoing. • During 2016/17 financial year, the construction of chanceries in Dar es Salaam, Tanzania, and Lilongwe, Malawi, as well as three staff accommodation units were completed.

8. PART B: SERVICE DELIVERY AND PERFORMANCE INFORMATION

9. 2016/17 PERFOMANCE OUTCOME • For the period under review, the Department reported a net shortfall of R6,3 million. • Compensation of employees reported an expenditure of R3,115 billion against the budget of R3,071 billion and the variance of R44 million. The variance of R44 million relates to the department exceeding the predetermined expenditure ceiling set by National Treasury. • The department continues to work on the measures to reduce the salary bill in 2017/18. • Included in the financial report is an unauthorised expenditure amounting to R33,9 million as a result of an outstanding African Union annual assessment which part payment was made in 2016/17 financial year due to the difference in the AU financial year and the department. Approval was sot to move funds which was not considered.

10. 2016/17 PERFOMANCE OUTCOME • The department continues to engaging National Treasury to align the department planning cycle with that of the AU. • The department managed to submit a credible asset register using a Nettrace system to the Auditor General of South Africa on the 31th of May 2017. • The identification of Heritage assets was completed with the assistance of the officials fro the Office of the Accountant General: National Treasury as well as expertise from a Conservator from the National Cultural History & Open Air Museum. • The Asset Register clean-up was dealt with in the main to address the challenges of existence and completeness. • The department continues to work on improving the completeness of the assets register.

11. PROGRAMME 2: INTERNATIONAL RELATIONS

12. PROGRAMME 2: INTERNATIONAL RELATIONS

13. PROGRAMME 2: INTERNATIONAL RELATIONS SOUTH AFRICA’S ECONOMIC DIPLOMACY

14. PROGRAMME 2: SADC

15. PROGRAMME 3: INTERNATIONAL COOPERATION

16. PROGRAMME 3: INTERNATIONAL COOPERATION

17. PROGRAMME 3: CONTINENTAL COOPERATION

18. PROGRAMME 3: SOUTH-SOUTH COOPERATION

19. PROGRAMME 3: SOUTH-SOUTH COOPERATION

20. PROGRAMME 3: NORTH-SOUTH COOPERATION

21. PROGRAMME 4: SUB-PROGRAMME 4.1: PUBLIC DIPLOMACY • 18 targeted media briefings; • 186 over the target of 160 media statements; • 14 over the target of 10 opinion pieces Setting the agenda • Five statutory and 10 internal publications produced • Nine over the target of four stakeholder publications produced • Ubuntu magazine available in digital format and SAA business lounges Own platforms PUBLIC DIPLOMACY Promotion and Branding SA and DIRCO • 19 over the targeted 12 Public Participation Programmes undertaken to create greater awareness of SA’s foreign policy priorities • Hosted the Annual Diplomatic Fair • Hosted the 3rd Annual Ubuntu awards

22. PROGRAMME 4 4.2: STATE PROTOCOL

23. PART C: FINANCIAL REPORTING INFORMATION

24. ANNUAL APPROPRIATION STATEMENT

25. ANNUAL APPROPRIATION STATEMENT

26. ANNUAL APPROPRIATION STATEMENT

27. ANNUAL APPROPRIATION STATEMENT

28. ANNUAL APPROPRIATION STATEMENT

29. ANNUAL APPROPRIATION STATEMENT

30. ANNUAL APPROPRIATION STATEMENT

31. AUDIT FINDINGS AND PROPOSED ACTIONS

32. ACTIONS IN RESPECT OF MATTERS ARISING FROM THE AGSA REPORT • Irregular expenditure Incidents of irregular expenditure as recorded in the register are being analysed to determine appropriate treatment relevant to each of the cases based on the findings of the AGSA as outlined below: • Minimum number of written quotations not obtained; • Competitive bidding not invited relating to renewals of operational contracts; • Inadequate contract performance measures and monitoring; and • Preference point system not applied or incorrectly applied.

33. ACTIONS IN RESPECT OF MATTERS ARISING FROM THE AGSA REPORT Steps being taken: • Investigations have been conducted and recommendations are being implemented in line with the NT Guidelines on Irregular Expenditure as well the disciplinary code and good procedure in the Public Service. • Implementation of progressive discipline will be done in cases where it is found that the non compliance was as a result of unintended action while full disciplinary process will be undertaken where negligent and disregard for SCM prescripts is found to have been the factor. • Rolling out of the MARVAL system on contract management. • PFMA delegations have been developed and are being implemented to ensure that accountability is clearly determined • NT to pilot e-learning system on financial delegation with the department.

34. ACTIONS IN RESPECT OF MATTERS ARISING FROM THE AGSA REPORT 2. Fruitless and Wasteful Expenditure Incidents of wasteful expenditure as recorded in the register are also being analysed to determine the appropriate treatment relevant to each of the cases based on the findings of the AGSA as outlined below: • Rates and taxes for redundant properties abroad; • Security services for redundant properties abroad; • Upkeep services for redundant properties abroad; and • Cancellation of tickets without appropriate reason; • Penalties on late payments

35. ACTIONS IN RESPECT OF MATTERS ARISING FROM THE AGSA REPORT Steps being taken: • Investigations have been conducted and recommendations are being implemented in line with the guidelines on wasteful expenditure as well the disciplinary code and good procedure in the Public Service. • Implementation of full disciplinary process where negligent and disregard of SCM prescripts. • The department finalized its acquisition property strategy in August 2017. • Engagements with DPW and other stakeholders on the utilisation of the identified redundant properties are continuing.

36. ACTIONS IN RESPECT OF MATTERS ARISING FROM THE AGSA REPORT • Corrected misstatements: • Inadequate post review of daily transactions. • Absence of an integrated financial management system. The absence of an integrated financial management system result in a delay of a month in the review of daily transactions. Steps being taken: • A workflow on work-study investigation for Branch: Financial & Asset management has been concluded and ready to be utilized for skills assessment to match competencies with required skills for officials assigned with review of daily transactions. • Continued engagement with National Treasury to be part of the pilot on integrated financial management system and response awaited.