Annual Report - Provincial Government of South Africa

Annual Report2016 / 2017

Northern Cape Department of Agriculture, Land Reform & Rural Development

Annual Report 2016/2017

PR118/2017ISBN: 978-0-621-45378-2

Dep

artment of A

griculture, Land R

eform &

Rural D

evelopm

entN

orthern Cap

e Province Vote 12

Annual R

epo

rt 2016/2017

Designed & printed by SwiftPrint, Tel: 053 839 2900, Kimberley

Annual Report for 2016/17 Financial Year

| 1Department of Agriculture, Land Reform & Rural Development Northern Cape Province Vote 12


2 |Department of Agriculture, Land Reform & Rural Development Northern Cape Province Vote 12

TABLE OF CONTENTS

PART A: GENERAL INFORMATION ............................................................................................................ 4

1. DEPARTMENT GENERAL INFORMATION ............................................................................................ 5

2. LIST OF ABBREVIATIONS/ACRONYMS ............................................................................................... 6

3. FOREWORD BY THE MEC .................................................................................................................... 8

4. REPORT OF THE ACCOUNTING OFFICER .......................................................................................... 9

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ............................................................................................................................... 15

6. STRATEGIC OVERVIEW ...................................................................................................................... 16

6.1. Vision ............................................................................................................................................. 16

6.2. Mission .......................................................................................................................................... 16

6.3. Values ............................................................................................................................................ 16

7. LEGISLATIVE AND OTHER MANDATES ............................................................................................. 17

8. ORGANISATIONAL STRUCTURE ....................................................................................................... 18

9. ENTITIES REPORTING TO THE MEC ................................................................................................. 18

PART B: PERFORMANCE INFORMATION ................................................................................................ 19

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................................... 20

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE............................................................................ 20

2.1 Service Delivery Environment ....................................................................................................... 20

2.2 Service Delivery Improvement Plan .............................................................................................. 21

2.3 Organisational environment .......................................................................................................... 23

2.4 Key policy developments and legislative changes ....................................................................... 24

3. STRATEGIC OUTCOME ORIENTED GOALS ...................................................................................... 24

4. PERFORMANCE INFORMATION BY PROGRAMME .......................................................................... 39

4.1 Programme 1: Administration ....................................................................................................... 39

4.2 Programme 2: Sustainable Resource Management ..................................................................... 46

4.3 Programme 3:Farmer Support and Development ........................................................................ 60

4.4 Programme 4: Veterinary Services ............................................................................................... 73

4.5 Programme 5: Research and Technology Development Services ............................................... 90

4.6 Programme 6: Agricultural Economics Services ........................................................................ 103

4.7 Programme 7: Rural Development Coordination .........................................................................112



5. TRANSFER PAYMENTS .................................................................................................................... 122

6. CONDITIONAL GRANTS ................................................................................................................... 122

6.1. Conditional grants and earmarked funds received .................................................................... 122

7. DONOR FUNDS ................................................................................................................................ 127

7.1. Donor Funds Received ............................................................................................................... 127

8. CAPITAL INVESTMENT ..................................................................................................................... 127

8.1. Capital investment, maintenance and asset management plan ....................................................... 127

PART C: GOVERNANCE ........................................................................................................................... 127

1. INTRODUCTION ................................................................................................................................ 129

2. RISK MANAGEMENT ........................................................................................................................ 129

3. FRAUD AND CORRUPTION .............................................................................................................. 129

4. MINIMISING CONFLICT OF INTEREST ............................................................................................ 130

5. CODE OF CONDUCT ........................................................................................................................ 130

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ......................................................................... 131

7. PORTFOLIO COMMITTEES .............................................................................................................. 132

8. SCOPA RESOLUTIONS ..................................................................................................................... 132

9. PRIOR MODIFICATIONS TO AUDIT REPORTS ................................................................................ 132

10. INTERNAL CONTROL UNIT .............................................................................................................. 133

11. INTERNAL AUDIT AND AUDIT COMMITTEES.................................................................................. 133

12. REPORT OF THE AUDIT COMMITTEE ............................................................................................. 136

PART D: HUMAN RESOURCE MANAGEMENT ...................................................................................... 138

1. INTRODUCTION ................................................................................................................................ 139

2. HUMAN RESOURCES OVERSIGHT STATISTICS ............................................................................. 140

PART E: FINANCIAL INFORMATION ....................................................................................................... 167

1. REPORT OF THE AUDITOR GENERAL ............................................................................................ 169

2. ANNUAL FINANCIAL STATEMENTS ..................................................................................................174



1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 162 George Street

Kimberley

8301

POSTAL ADDRESS: Private bag X5018

Kimberley

8301

TELEPHONE NUMBER/S: +27 538389100

FAX NUMBER: +27 538389138

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.agrinc.gov.za



2. LIST OF ABBREVIATIONS/ACRONYMS

ABET Adult Basic Education & Training

AC Audit Committee

AFASA African Farmers Association of South Africa

AFS Annual Financial Statements

AGSA Auditor General of South Africa

AgriNK Agri – Noord Kaap

AO Accounting Officer

APR Agricultural Potential Reports

ARC Agricultural Research Council

BBBEE Broad Based Black Economic Empowerment

BMF Broad Management Forum

CAADP Comprehensive African Agricultural Development

CASP Comprehensive Agricultural Support Programme

CFO Chief Financial Officer

COGSTA Department of Cooperative Governance, Human Settlements & Traditional Affairs

CPA Communal Property Association

CRDP Comprehensive Rural Development Programme

CWP Community Work programme

DAFF Department of Agriculture, Forestry and Fisheries

DALRRD Department of Agriculture, Land Reform and Rural Development

DSA Descriptive Sensory Analysis

ECDC Early Childhood Development Centres

EDEC Extended Departmental Executive Committee

EPWP Expanded Public Works Programme

EIA Environmental Impact Assessment

EU European Union

FAO Food & Agriculture Organization

FMD Foot and Mouth Disease

GADI Grootfontein Agricultural Development Institute

GI Geographic Indication

HOD Head of Department

IDP Integrated Development Programme

IFSNP Integrated Food Security & Nutrition Programme

IEC Independent Electoral Commission

IFSS Integrated Food Security Strategy of South Africa

JTG John Taolo Gaetsewe

KDF Trust Karoo Development Foundation Trust

LSU Large Stock Unit

MEC Member of Executive Council



MOU Memorandum of Understanding

MIG Municipal Infrastructure Grant

MISS Management Information Security Systems

MPAT Management Performance Assessment Tool

MPL Member of the Provincial Legislature

MTSF Medium Term Strategic Framework

MTEF Medium Term Expenditure Framework

NAFU National African Farmers Union

NAMC National Agriculture Marketing Council

NCOP National Council of Provinces

NDMC National Disaster Management Centre

NDP National Development Plan

NGO Non-Governmental Organization

NICD National Institute of Communicable Diseases

OIE Office International des Epizooties

OCFO Office of the Chief Financial Officer

PA Pyrrolizidine alkaloid

PAIA Promotion of Access to Information

PAJA Promotion of Administrative Justice

PSC Public Service Commission

PDMC Provincial Disaster Management Centre

PFMA Public Finance Management Act

PPME Planning Performance Monitoring & Evaluation

PPP Public Private Partnerships

QLFS Quarterly Labour Force Survey

RADP Recapitalization and Development Programme

RMC Risk Management Committee

SASSA South African Social Security Agency

SASAE South African Society for Agricultural Extension

SCOPA Standing Committee on Public Accounts

SIP Strategic Integrated Projects

SKA Square Kilometre Array

SMME Small Medium and Micro Enterprises

SCM Supply Chain Management

SAQA South African Qualifications Authority

SDVI Standardized Difference Vegetation Index

SITA State Information Technology Agency

SDIP Service Delivery Improvement Plan

SPLUMA Spatial Planning and Land Use Management Act

SSA State Security Agency

TR Treasury Regulations

VCI Vegetation Condition Index



3. FOREWORD BY THE MEC

The annual report 2016/17 presents the work undertaken by the department in pursuit of a transformed, vibrant agricultural sector for food security and sustainable rural development. It is this vision that has guided the activities, interventions, and programmes of the department. The delivery environment was complicated by the subdued economic outlook, natural disasters such as drought, and internal constraints pertaining to the recruitment of personnel in the scarce skills category. However, prudency has enabled the department to implement and pursue its planned programmes successfully.

The department continued to prioritise and implement the Fetsa Tlala Food Production Programme as part of the food security initiatives. This programme aims to put 1 million hectares of unproductive land into production, create jobs and address challenges of food security in the Province. During the year under review, a total of 812.5 ha were planted with various crops in the province. The main crops planted were maize, wheat, oats and dry beans.

The department, in its endeavour to contribute to economic growth and creation of jobs, used the conditional grants of CASP and Ilima/Letsema to fund projects for smallholder farmers and black commercial farmers. Projects implemented through these conditional grants resulted in the creation of 708 jobs. A total of 3965 smallholder farmers were supported with the aim of increasing production and transforming the sector.

Assistance to smallholder farmers was particularly important given the impact of the drought that was experienced in parts of the province. Through funds allocated by Department of Agriculture, Forestry and Fisheries (DAFF), farmers in the affected areas were provided with feed and technical support. It remains a priority of the department to monitor the situation and to intervene timeously to avoid any catastrophe resulting from natural disasters. Accordingly, the department has established a fodder bank to support farmers affected by disasters such as drought and veld fires.

Research and technology transfer is one of the key instruments that will be used to support growth of the sector in the province. Against this backdrop, the department has implemented 13 long term projects that will potentially lead to adoption of more sustainable production technologies thereby grow and transform the sector. This is central to achieving improved livelihoods, sustainable rural development, and food security for all.

My sincerest gratitude goes to all members of staff who with the support of our partners worked tirelessly and diligently to ensure that the priorities of government are pursued through the achievement that are reported in this annual report. Together we will continue to do more in improving the quality and access of services to the public.

_________________

Mr GNJ Shushu, MPL

MEC of the Department of Agriculture, Land Reform and Rural Development

Date: 29 August 2017

Mr G.N.J Shushu

Member of the Executive Council



4. REPORT OF THE ACCOUNTING OFFICER

Overview of the operations of the department:

The 2016/2017 financial year has been an exciting and eventful year in the achievement of annual performance strategic indicators, as presented in the Annual Performance Plan (APP) 2016/2017. Despite various challenges the department continued to aggressively pursue planned targets in the interest of ensuring service delivery was not compromised or negatively impacted.

The 2011 Flood Assistance scheme has finally been concluded by 31 March 2017. Although the department envisaged in its APP to conclude on the scheme during 2015/2016, it was challenged in the EIA process for the Onseepkans bulk water supply infrastructure. The challenge to the EIA process was attributed to a decision to replace the canal with a pipeline that was not only cost effective, but considered the risk of damages to the pipeline owing to it falling beneath floodline. The proposed alternative required a re-submission of the EIA process that was issued during October 2016.

The province continues to experience recurrent droughts and continues with its mitigation strategies. In the 2016/17, following the driest year since 1904, the province was allocated an amount of R25m from a request of R163m but the implementation was centralized by national. This forced the province to prioritize the winter rainfall and transitional areas for urgent intervention and an amount of R20m was for fodder and the remaining R5m was for transportation of donated fodder.

Overview of the financial results of the department:

Departmental receipts

Departmental receipts

2016/2017 2015/2016

Estimate Actual Amount

Collected

(Over)/Under

Collection

Estimate Actual Amount

Collected

(Over)/Under

Collection

R’000 R’000 R’000 R’000 R’000 R’000

Tax Receipts

Casino taxes

Horse racing taxes

Liquor licences

Motor vehicle licences

Sale of goods and services other than capital assets

2 557 2 838 (281) 1 974 2 820 (846)

Transfers received

Fines, penalties and forfeits

Interest, dividends and rent on land

4 5 (1) 9 9 -

Sale of capital assets 648 648 -

Financial transactions in assets and liabilities

102 221 (119) 72 139 (67)

Total 3 311 3 712 (401) 2 055 2 968 (913)

Mr W.V.D Mothibi

Head of Department



The department collected R3.712 million of own revenue for the 2016/17 financial year and this represents an increase of 25 percent when compared to the previous financial year. This increase mainly is noted in the category of sale of capital assets and is related to the insurance payment received for the official vehicle of the Executive Member that was written-off after an accident.

As has been the trend over the past few years, the department has over collected on its revenue estimates. This is to some extent is deliberate in that it is difficult to reasonably forecast the incidental sale of biological assets which are used for breeding and research purposes on our research stations and the Livestock Improvement Programme (LIP).

The tariffs related to veterinary services are reviewed annually and when necessary increased with the approval of the Provincial Treasury. There were no bad debts written off during the period under review.

The list below represents those free services rendered by the department that if a fee/tariff were charged, could have yielded a significant amount of revenue.• Veterinary services• Primary animal health care (e.g. spay campaigns)• Awareness campaigns (radio talks, farmer’s days & workshops)• Vaccination campaigns• Agricultural business development• Business plan development• Feasibility studies• Training and capacity building of farmer’s• Extension and advisory services

Programme Expenditure

Programme 2016/2017 2015/2016

Final Appropri-

ation

Actual Expendi-

ture

(Over)/Under Ex-penditure

Final Appropri-

ation

Actual Expendi-

ture

(Over)/Under Ex-penditure

R’000 R’000 R’000 R’000 R’000 R’000

Pr 1: Administration 118 608 118 606 2 106 491 106 424 67

Pr 2: Sustainable Resource Management 95 698 95 444 254 97 500 97 496 4

Pr 3: Farmer Support & Development 226 885 212 071 14 814 245 596 243 345 2 251

Pr 4: Veterinary Services 44 659 44 659 - 43 017 42 682 355

Pr 5: Research & Technology Development 46 656 46 656 - 43 308 43 065 243

Pr 6: Agricultural Economics 9 061 9 043 18 9 119 8 138 981

Pr 7: Rural Development 13 638 13 630 8 12 916 12 900 16

Total 555 205 540 109 15 096 557 947 554 947 3 892

The final adjusted budget allocation of the department, including conditional grants, for the 2016/17 financial year was R555.205 million of which R540.109 million or 97 percent was spent. The unspent portion mainly related to the conditional grants however these funds were committed and rollover of funds was requested from the Provincial Treasury.

The total budget available from four conditional grants amounted to R196.466 million of which R181.634 million or 92 percent was spent. R14.810 million of the unspent funds have been requested to be rolled over to the 2017/18 financial year.



The graph below shows the overall budget and expenditure trend of the Department for the past three financial years

715 690

619 947

552 383

776 638

557 947 555 205

769 439

554 050 540 109

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

2014/15 2015/16 2016/17

Original Budget Final Budget Final Expenditure

Virements/Roll Overs

The department has effected virements between the main divisions and fund shifts within main division in terms of section 43 of the PFMA and Treasury Regulation 6.3 to defray excess expenditure in some programmes with savings from other programmes. The details of the virements are summarised in the table. The virements were approved by the Accounting Officer and the both the Executive Authority and the Provincial Treasury were informed.

Virement from Virement to

Programme / Economic classification

R thousand


R thousand

Programme 1: (297) Programme 1: 1,174

Current payments - Current payments 1,174

Compensation of employees Compensation of employees 123

Goods and services Goods and services 1,051

Transfers and Subsidies Transfers and Subsidies

Payment for capital assets (297) Payment for capital assets

Programme 2: (334) Programme 2: -

Current payments (334) Current payments -

Compensation of employees (334) Compensation of employees

Goods and services Goods and services





Virement from Virement to


R thousand


R thousand

Programme 3: (164) Programme 3: 1,099

Current payments - Current payments 1,099

Compensation of employees Compensation of employees 547

Goods and services Goods and services 552






Goods and services (85) Goods and services



Programme 5: (1,438) Programme 5: 804

Current payments (1,438) Current payments -


Goods and services (891) Goods and services


Payment for capital assets Payment for capital assets 804




Goods and services Goods and services



Programme 7: - Programme 7: 424

Current payments - Current payments 424

Compensation of employees Compensation of employees

Goods and services Goods and services 424


Payment for capital assets Payment for capital assets

The department received roll-overs on two of the conditional grants during the adjustment estimates process of the 2016/17 financial year. The details thereof are summarised in the table below. There were unspent funds of the 2016/17 financial year of conditional grants that have been requested for roll over to the 2017/18 financial year.

Grant Name R thousand

Original Budget

Roll-over Adjusted Budget

Programme 3: Farmer Support and Development

Comprehensive Agriculture Support Programme Grant (Projects & ERP)

128 364 1 560 129 924

Illima/Letsema Projects Grant 55 050 172 55 222



Unauthorised, fruitless and wasteful expenditure

There has been no unauthorised expenditure incurred during the current financial year.

The department went through a thorough exercise to ensure that all fruitless and wasteful expenditure is identified and treated appropriately. During the 2016/2017 financial year a total amount of R0.153 million was identified as fruitless and wasteful expenditure. Included in this was 76% (R0.116 million) related to costs incurred as a result of vehicle accidents, the remainder of the 24% (R0.37 million) was attributed to fines, cancellation fees and interest on accounts. Investigations to determine whether there was gross negligence or circumstances beyond reasonable care that resulted in the fruitless and wasteful expenditure is underway and expected to be finalised during the 2017/18 financial year.

Also included in the thorough investigation exercise, was the investigation of the 2015/16 financial year’s fruitless and wasteful expenditure of R0.62 million. An amount R0.014 million or 23% could be attributed to accidental incidences and an amount of R0.047 million or 77% was incurred due to traffic fines, interest and penalties on accounts or no show. The traffic fines are in progress of being recovered for the transgressors.

Thorough investigations for the remainder, indicated that there were no reason to believe that any official acted due to gross negligence or any other deliberate action to cause the fruitless and wasteful expenditure to the department, however instruction letters were sent to these officials involved to ensure that this will not be repeated in future.

Future plans of the department

None

Discontinued activities / activities to be discontinued

None

New or proposed activities

None

Supply Chain Management

The Department did not conclude any unsolicited bid for the year under review.

Immense progress was made during this financial year by the department under the watchful eye of the Internal Control unit, with regard to the identification and reporting of Irregular expenditure within the department.

Investigations for the huge backlog of cases since 2014/15 was prioritised. The outcome indicated that for most of these cases, though proper supply chain management procedures were not always followed, there were indeed justifiable circumstances that resulted in deviations being the only option, so as not to compromise the service delivery.

The investigations indicated however, that there was a huge gap in the awareness of new developments in the legislation pieces that lead to the non-adherence. The Internal Control unit and SCM unit embarked on training workshops to update officials involved. The training focused on procurement officials and other users within our department that were linked to the procurement process. The objective of the training was simple and that was to ensure that future occurrence on irregular expenditure is avoided before it enters the procurement process. This being said, the department realises that it would not be an overnight solution for various reasons, but training, updates and consequence management will be applied consistently in the endeavour to eliminate irregular expenditure completely. The note to the financial statements on irregular displays a significant reduction in irregular expenditure, indicating that significant strides have been made to reduce irregular expenditure instances.



Gifts and donation received in kind from non-related parties

No gifts and donations have been received in-kind from a non-related party.

Exemptions and deviations received from National Treasury

For the year under review, the Department did not receive any exemptions and/or deviations from National Treasury

Events after the reporting dates

There are no reportable events subsequent to the reporting date

Other

There are no other material fact or circumstances, which may have an effect on the understanding of the financial state of affairs, not addressed elsewhere in this report.

Acknowledgement/s or Appreciation

I would like to thank all the officials of the department who worked diligently and tirelessly with the support of our partners and the relevant stakeholders in the sector to ensure that our priorities are pursued unrelentingly and our goals and objectives achieved.

Conclusion

The achievements and success of the department is driven by a mindset that is shared by management and staff, to serve the agriculture sector to the best of our ability. Ensuring that the department operates in an environment that encourages economical and efficient use of resources in delivery of services that our valued by all our stakeholders. We are not perfect but we will continue to strive towards perfection, learning from the failures of our past.

Approval and sign off

The Annual Financial Statements set out on pages 175 to 266 have been approved by the Accounting Officer

_________________

Mr WVD Mothibi

Accounting Officer

Department of Agriculture, Land Reform and Rural Development




5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2017.

Yours faithfully

___________________

Accounting Officer

Mr WVD Mothibi

Department of Agriculture, Land Reform and Rural Development




6. STRATEGIC OVERVIEW

6.1 Vision

A transformed, vibrant agricultural sector for food security and sustainable rural development.

6.2 Mission

The Department as a lead agent in the sector, will champion land and agrarian transformation, promote and facilitate increased production and provide expertise for improved livelihoods, sustainable rural development and food security for all.

6.3 Values

The Department will aspire to the following values:

• Responsiveness • Sacrifice • Professionalism• Accountability• Respect • Innovation



7. LEGISLATIVE AND OTHER MANDATES

The Department of Agriculture, Land Reform and Rural Development is an integral part of the South African Public Service established in terms of section 197 of the Constitution and read with section 7 (1) and 7 (2) of the Public Services Act of 1994. In particular the following sections are relevant to the Department. Chapter 2, Sections 23, 25 and 27 Schedule 4 and 5 of the Constitution.

The Department functions under several legislative mandates, which include among others the following:• Agricultural Development Fund Act, 1993 (Act No 175 of 1993)• Agricultural Product Standards Act, 1990 (Act No 119 of 1990)• Animal Diseases Act, 1984 (Act 35 of 1984)• Agricultural Research Act, 1990 (Act No 86 of 1990)• Animal Identification Act, 2002 (Act No 6 of 2002• Animal Improvement Act, 1998 (Act 62 of 1998)• Broad Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003)• Codex Alimentarius of the World Health Organization (WHO) and Food and Agricultural Organization

(FAO) (International Code on Food Safety)• Communal Land Rights Act, 2004• Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)• Constitution of the Republic of South Africa, 1996 (Act 108 of 1996)• Disaster Management Act, 2002 (Act No 57 of 2002)• Fencing Act, 1963 (Act No 31 of 1963)• Fertilizers, Farm feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act 36 of 1947)• Genetically Modified Organisms Act, 1997 (Act 15 of 1997)• Land Reform Act, 1997 (Act 3 of 1997)• Marketing of Agricultural Produce Act, 1996 (Act 47 of 1996)• Meat Safety Act, 2000 (Act 40 of 2000)• Northern Cape Land Administration Act, 2003• Perishable Product Export Control Act, 1983 (Act 9 of 1983)• Plant Improvement Act, 1976 (Act 53 of 1976)• Public Finance Management Act, 1999 (PFMA), Act 1 of 1999 as amended by Act 29 of 1999• Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000)• Preferential Procurement Regulations of August 2001• Provincial Supply Chain Management Policy (April 2006)• South African Abattoir Corporation Act, 2005 Repeal (Act no 17 of 2005)• Subdivision of Agricultural Land Act, 1970 (Act 70 of 1970) (pending repeal)• Spatial Planning and Land Use Management Act 16 of 2013• The International Animal Health Code of the World Organization for Animal Health (OIE – Office

International des Epizooties)• The international Code for Laboratory Diagnostic Procedure for Animal Diseases of the World

Organization for Animal Health• The Sanitary and Phyto-sanitary Agreement of the World Trade Organization (WTO)• Treasury Regulations for Departments, constitutional institutions and public entities issued in

March 2005 in terms of the PFMA• Veterinary and Para-Veterinary Professions Act, 1982 (Act 19 of 1982)• Water Act, 1998



8. Organisational Structure

9. Entities Reporting to the MEC



1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Refer to page 169 of the Report of the Auditor General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

The performance environment during the year under review was characterised by a constraint economic growth; decrease in the levels of employment; and severe drought that affected parts of the country and led to a sharp increase in the food prices. These factors adversely affected the poverty levels and food security in the province. Accordingly, the department had to respond to the service delivery challenges while contributing to the broad developmental goals of government.

In terms of the global economic outlook, The International Monetary Fund projects that the world economy will grow by 3.4 per cent in 2017 and 3.6 per cent in 2018. At the national level, the GDP growth is expected to increase from 0.5 per cent last year to 1.3 per cent in 2017, and will continue to improve moderately over the medium term. This represents a very modest growth which places a strain on the government revenue and its ability to expand public services. In terms of the province, the economy grew by 2.8 percent, this is higher than growth of 2.1 percent in 2013. This rate was higher than the national growth rate of 1.5 percent in 2014. The agricultural sector in the Northern Cape grew by 3.0 percent in 2014 which was slightly lower that the 3.3 percent in 2013. This demonstrates the support from the agricultural sector towards positive provincial growth.

One of the priorities of government is the creation of decent jobs. According to the Labour Force Survey of Statistics South Africa (StatsSA), provincial employment decreased by roughly 10 000 between the third and fourth quarters of 2016 from 308 000 to 298 000. As a result, unemployment increased from 29.5 percent to 32.0 percent over that period. Employment in the agricultural sector of the Northern Cape decreased with 3 000 jobs from 56 000 to 53 000 from the third to the fourth quarter, but still significantly higher than the 43 000 of the fourth quarter of 2015.

The Northern Cape, like most provinces in South Africa, experienced 2015/16 as the driest year since 1904 with resultant percentage rise in food prices reaching 12.0% in December 2016 (December 2016 compared to December 2015). As a result of this dry period, the Department of Water and Sanitation announced water cuts for the Vaal and Orange River systems of 15% and 20% forcing farmers to revise their planting terms. Some farmers moved from planting two crops per year to only one and that affected farm incomes in the short term. The challenges of water quantities available to farmers were not the only concern as the quality of the water especially along the Vaal River System was worrying farmers. Bad quality water is as worrying as low water availability especially in the agricultural sector producing food. The possible water restrictions will have a severe negative impact. The Livestock producers were affected negatively by the drought situation and lower stock levels and rebuilding of stock numbers affects availability of marketable animals.

Drought Relief Programme

The province experienced a major drought in the 2013/14 financial year where 8 000 farmers from the JTG, Frances Baard and part of Namakwa were assisted. During 2015/16 financial year the drought extended to new parts of the Namakwa district. Loeriesfontein and Hantam areas were hard hit. However, four of the five districts; Frances Baard, John Taolo Gaetsewe, Pixley Ka Seme and biggest part of ZF Mgcawu received good, average to above average, rains during the past summer season, October 2016 – February 2017.



The areas identified during October/ November 2016 to support farmers were Namakwa district, especially the winter rainfall area, as well as an area in Khai Ma (Kenhardt) in the ZF Mgcawu district. These identified areas received very little or no rain since October 2016 and drought conditions in the Hantam area, Calvinia, Fraserburg, Sutherland, Williston, Brandvlei and Loeriesfontein actually worsened drastically. The Department of Agriculture, Forestry and Fisheries (DAFF) allocated R25 million of the total allocation of R212 million from National Treasury to the Northern Cape for the procurement of drought feed. DAFF centrally procured 73 000 bags of drought pellets at a cost of R 20,44 million from Stanch Trading of Hartswater for distribution to farmers in the identified drought stricken areas. The distribution is at present in process.

The remainder of the R25 million (R4.5 million) will be utilised for the transport of donated animal feed from various locations to further support the farmers in need. The department is also in process to make approximately 60 tons of feed from the fodderbank at Eiland Research Station at Upington available to Agri – North Cape for distribution to farmers in dire need.Furthermore, during the year under review, there was African swine fever outbreak in our neighbouring provinces. Consequently, the province had to be on standby and put measures in place for a possible outbreak and to conduct surveillance. This implied redirection of resources and personnel as farms had to be visited. Thus further, the province has not been affected and the situation is continuously being monitored.

Another challenge is the illegal slaughtering of donkeys which has become a booming business given the high demand of gelatin from donkey skins by pharmaceutical companies in China. Two high profile incidents of illegal donkey slaughtering including an organized syndicate were halted in the province by the law enforcement units. Officials from Kuruman State Vet office, together with the NSPCA and SAPS discovered a site on a farm in Olifantshoek where more than 100 donkeys had been illegally slaughtered.

2.2 Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

Main services and standards

Main services Beneficiaries Current/actual standard of service

Desired standard of service

Actual achievement

Extension and advisory Services

Farmers

Land reform beneficiaries

Communities

4258 famers and beneficiaries

2500 smallholder farmers supported with agricultural advice

1200 training in agricultural skills programmes

6 Commodity groups supported

26 projects supported with CASP(Comprehensive Agricultural Support Programme)

14 Projects supported with Ililma/Letsema

1000 work opportunities created

3965 Farmers received agricultural advice through information days, demonstrations, site visits and meeting.

1523 farmers were trained

6 Commodity groups supported

25 projects supported with CASP

14 Projects supported with Ililma/Letsema

708 work opportunities created



Main services Beneficiaries Current/actual standard of service

Desired standard of service

Actual achievement

Primary Animal HealthCare interventions using the mobile veterinary truck

Resource poor communities in the most remote and rural areas of the province with special emphasis on1. Indigent persons2. Pensioners3. Child headed

households4. Persons with

disability

At least 7 primary animal health outreach interventions to the rural poor communities in the province targeting between 20 and 40 animals sterilization at each session.

16 food safety campagins

5000 epidemiological units visited

21 000 tests performed for diagnostic services and epidemiological investigations

360 clients were serviced for animal and animal products export control

16 safety campaings and 8 community outreach programmes conducted

3055 epidemiological units visited

28720 tests performed for diagnostic services and epidemiological investigations

383 clients were serviced for animal and animal products export control

Batho Pele arrangements with beneficiaries (Consultation access etc.)

Current/actual arrangements Desired arrangements Actual achievements

• Information is disseminated to the community by Animal Health Technician and Community development workers

•Local radio and newspapers is also used to reach the people in a particular area.

•Sharing of information also takes place during tribal ,community meetings and Agricultural forum meetings

Community to be informed of visit 4 weeks in advance. Itinerary to be placed on notice board at Tribal offices, municipal offices.

Conduct food safety campaigns

•Notice of visit was communicated to the community 4 weeks in advance

• 16 Food safety Awareness campaigns conducted in 52 schools reaching 25 795 learners, 9 farmers days, 54 public institutions and 8 community outreach programme

Support all the farming communities and beneficiaries through various engagement Meetings, workshops, information sessions, individual contact sessions, Agricultural demonstrations and farmers’ days.

Support all the farming communities and beneficiaries

•3965 Farmers received agricultural advice through information days, demonstrations, site visits and meeting.

•1523 farmers were trained

Service delivery information tool

Current/actual information tools Desired information tools Actual achievements

• Information is disseminated to the community by Animal Health Technician and Community development workers.

•Local radio and newspapers is also used to reach the people in a particular area.

•Sharing of information also takes place during tribal ,community meetings and Agricultural forum meetings

•Departmental website should be updated and be accessible to clients.

•Departmental Annual Report should be made accessible to client.

•Conduct Food Safety awareness campaigns

•The website is accessible to clients for information.

•The Departmental Annual report and Quarter performance reports are published on the Departmental website

•9 Food safety Awareness campaigns conducted in 72 schools reaching 1316 learners, 7 farmers days and 54 public institutions

Meetings, workshops, information sessions, individual contact sessions, telephones

•Conduct Agricultural demonstrations, courses and farmers days

•Explore the use of Electronic media

•3965 Farmers supported through information days, demonstrations, site visits and meeting.

•1523 farmers were trained.•Use of departmental website for

information sharing



Complaints mechanism

Current/actual complaints mechanism

Desired complaints mechanism Actual achievements

•All complaints are directed to the Deputy Director: Animal Health who may refer the complaint to the Director.

•Code of conduct exits for public servants and professionals e.g. PSC code and SAVC code.

Departmental grievance procedure should be explained to clients

No formal complaints received by the Deputy Director: animal Health due to high level of service delivery satisfaction from most of our farmers.

Response given to the grievances by the Senior manager, HOD office, and the MEC to the farmers

•Shorten the turn -around time of responses and act on the grievances.

•Put in the corrective measures on grievances lodged.

Due to high level of transparency and the improved reporting system introduced by the department grievances and feedback to farmers are immediately attended to during farmers days and Agricultural demonstration days.

Reports to Director, HOD or Ministry •Reports to Director, HOD or Ministry Most of the complaints are attended and resolved during the information days and Agricultural demonstrations.

2.3 Organisational environment

The constrained economic outlook was one of the key factors that affected the organisational environment during the year under review. The South African economy experienced a sluggish growth resulting in technical budget adjustment due to mandatory budget cuts. This meant that the department had to look at innovative ways to achieve predetermined objectives. In addition, it had to explore ways to increase efficiency; implement cost saving measures; work with sector partners to pool resources; and target high impact projects.

In the ensuing years focus will be on revising Terms of Reference of the Departmental Technical Committee and Departmental Project Coordinating Committees in order to institutionalise long-term planning and provide the platform for the private sector to engage government on pooling resources and efficient implementation of high impact projects. This is to ensure that the constrained economic situation does not affect the delivery of services to the clientele of the department.

The department resources continued to be drained by replacement of material lost through theft, especially at our research stations. A Comprehensive Security plan to secure government assets has been prioritised. Theft at the research stations has resulted in some projects, especially where edible products are researched, being temporarily stopped until access control and patrols are instituted.

The audit of the 2015/16 by the Auditor-General of South Africa (AGSA) highlighted some of the administrative and compliance issues that the department must focus on. In addition, the Management Performance Assessment Tool (MPAT 1.5) enabled the department to assess the functionality of key management performance areas. These include the strategic planning; governance and accountability; human resources; and financial management.

During the year under review the department implemented an audit action plan and MPAT improvement plan in order to address the identified areas of weaknesses. Accordingly the results of MPAT 1.6 show that there has been significant improvement in the key management functionality areas. Provincially the department imporived from position nine (MPAT 1.5) to position three (MPAT 1.6).

Effective human resource management systems have been identified as some of the key priorities in improving the organisational environment. These include establishing management structures and developing policies and systems. In this respect the following committees were established: Human Resource Planning and Capability Committee; Training Committee; Leave Committee; Diversity Committee; and Women Network and Men’s Committee. In addition the Succession Plan and the Resettlement Policy were approved. These developments are expected to aid improved human resource management.



The effort to mitigate skills deficit that has also affected the delivery of services includes continuous training of staff in technical and scares skill as well as provision of bursaries to students. In this respect, it can be reported that 11 employees completed their studies in various fields of study while 6 external students graduated. It is expected that the skills base that is being built over time will be used whenever there is a need and financial resources in the department. The main objective is to ensure that the department is able to provide quality services to all its clients at all times and make a meaningful contribution to the broad development agenda of the state.

2.4 Key policy developments and legislative changes

There were no key policy and legislative changes.

3. STRATEGIC OUTCOME ORIENTED GOALS

3.1 The Department has the following goals that are linked to the MTSF 2015-2019 outcomes.

Strategic outcome oriented goal 1

EFFECTIVE AND EFFICIENT GOVERNANCE

Goal statement To ensure effective and efficient governance


SUSTAINABLE USE AND MANAGEMENT OF NATURAL RESOURCES

Goal statement To ensure sustainable use and management of natural resources


SUSTAINABLE AGRICULTURAL PRODUCTION

Goal statementOptimal and sustainable agricultural production to ensure food security


BIO-SAFETY AND BIO-SECURITY FOR THE WELLNESS OF THE PUBLIC

Goal statement To ensure bio-safety and bio-security for the wellness of the public


EXPERT AND NEEDS BASED RESEARCH AND TECHNOLOGY

Goal statementTo render expert and needs based research and technology transfer services to clients


INCLUSIVE AGRICULTURAL ECONOMIC GROWTH

Goal statement Inclusive Agricultural Economic Growth


COMPREHENSIVE RURAL DEVELOPMENT

Goal statementTo ensure the effective implementation of the Comprehensive Rural Development Programme.



Outcomes Reports

Outcome 7: Comprehensive Rural Development

The National Development Plan (NDP) 2030 vision is rural areas (in chapter 6 Inclusive rural economy) which are spatially, socially and economically well integrated across municipal, district and provincial and regional boundaries – where residents have economic growth, food security and jobs as a result of agrarian transformation and infrastructure development programmes and have improved access to basic services, health care and quality education”. By 2030 agriculture is expected to create close to 1 million new jobs, contributing significantly to reducing overall unemployment. Chapter 6 of the NDP provides for the differentiated strategy that focuses on agricultural development based on successful land reform, employment creation and strong environmental safeguards. To achieve this, irrigated agriculture and dry-land production should be expanded, with emphasis on smallholder producers where possible. Quality basic services, particularly education, health care and public transport. In areas with greater economic potential, industries such as agro-processing, tourism, fisheries (in coastal areas) and small enterprise development should be developed with market support.

This was then developed into the Medium Term Strategic Framework (MTSF) that identified 10 strategic priorities that were further developed into 14 Outcomes. The Outcome that encapsulates the renewed emphasis on rural development is Outcome 7, which calls on government to promote Comprehensive Rural Development and Food Security.”

The co-ordinating department for Outcome 7 is the Department of Agriculture Land Reform and Rural Development (DALRRD). Key government partners in this endeavour include Provincial Department of Rural Development and Land Reform, Department of Co-operative Governance and Traditional Affairs and human settlement, the Department of Social Development, the Department of Health, the Department of Environmental and Nature Conservation, the National Departments such as the Department of Water and sanitation, the Department of Energy, the Department of trade and Tourism, the Department of Small businesses and all Municipalities. See below figure;

The figure below represents the NC outcome 7 delivery partners

Provincial depart-ments

SALGA & District Municipality

• Agriculture, Land Reform Rural development

• Provincial Treasury • Economic Development and

Tourism• Social Services• Environment & Conservation • Cooperative Government,

Human Settlement & Traditional Affairs

• Roads & Public Works • Education• Health• Transport, Safety and Liaison

• National Development Agency• Independent Development

Trust (IDT)• Industrial Development

Corporation (IDC)• Development Bank of

Southern Africa (DBSA)

• Rural Development and Land Reform

• Water Affairs• Public Works• Mineral Resources• Energy

State Agencies

& DFIs

National Depart-ments



The Department of Agriculture Land Reform and Rural Development as a provincial coordinator is tasked with the coordination of all the delivery partners so the objective of Comprehensive Rural Development is achieved.

Provincial Problem Statement

The Apartheid’s spatial design (patterns) inevitably resulted in fragmented and segregated development planning, without viable economic, social and cultural linkages between the economically active and relatively prosperous commercial urban areas of the country and the rural hinterland

These patterns led to the marginalisation of the poor, with many in rural areas and households trapped in a vicious cycle of poverty. Skewed land ownership patterns such that land was in the hands of the few resulting in the majority not having means of production. Land Reform has not yet translated into the establishment of sufficient numbers of sustainable new black farmers.

Outcome 7 Delivery Agreement – an Overview

The Ministers Performance Agreement provides six key sub-outcomes that contribute to the achievement of Outcome 7: “Comprehensive Rural Development and food security”. This agreement was then cascaded to the Northern Cape Premier who delegated to the Member of the executive Agriculture, Land Reform and Rural Development to coordinate Comprehensive Rural Development and Food Security in the Province. The sub outcomes talking to the outcome are:

1. Improved land administration and spatial planning for integrated development in rural areas2. Sustainable land reform (agrarian transformation)3. Improved food security 4. Smallholder farmer development and support (technical, financial, infrastructure) for agrarian

transformation5. Increased access to quality basic infrastructure and services, particularly in education, healthcare

and public transport in rural areas6. Growth of sustainable rural enterprises and industries characterised by strong rural-urban linkages,

increased investment in agro-processing, trade development and access to markets and financial services – resulting in rural job creation.

Review by Sub-Outcome

Overall achievement

Figure 1: Represent the overall achievement of outcome 7 for the 16/17 financial year

35

Outcome 7 Delivery Agreement – an Overview The Ministers Performance Agreement provides six key sub-outcomes that contribute to the achievement of Outcome 7: “Comprehensive Rural Development and food security”. This agreement was then cascaded to the Northern Cape Premier who delegated to the Member of the executive Agriculture land Reform and Rural Development to coordinate Comprehensive Rural Development and Food Security in the Province. The sub outcomes talking to the outcome are;

1. Improved land administration and spatial planning for integrated development in rural areas

2. Sustainable land reform (agrarian transformation) 3. Improved food security 4. Smallholder farmer development and support (technical, financial,

infrastructure) for agrarian transformation 5. Increased access to quality basic infrastructure and services, particularly in

education, healthcare and public transport in rural areas 6. Growth of sustainable rural enterprises and industries characterised by strong

rural-urban linkages, increased investment in agro-processing, trade development and access to markets and financial services – resulting in rural job creation.

Review by Sub-Outcome Overall achievement

Figure 1: Represent the overall achievement of outcome 7 for the 16/17 financial year

0%

10%

20%

30%

40%

50%

60%

70%

52% 61%

58% 59%

15% 19%

7% 8%

33.3%

19%

36% 32%

Outcome 7 - Performance on POA Quarter 1 -3 Validated and Quarter 4 Preliminary 2016/17

Financial year.

Achieved 100%+

Partial achievement 50% -99%

Not achieved <50%



Sub-outcome 1: Improved land administration and spatial planning for integrated development in rural areas

This sub-outcome aims to contribute to the following:

The Developing and implementing of the spatial development framework as the basis to guide land use planning and development and to address spatial inequalities, prioritising the 27 resource-poor district municipalities

To strengthening coordination across the three spheres of government and external stakeholders to implement the Comprehensive Rural Development programme(CRDP) in line with the spatial development plans.

To this end the following targets were set by the Province for 2016/17:• A total of 26 Municipalities supported to develop SDFs; • A total of 19 Municipalities to implement Spatial planning and Land Use Management Act(

SPLUMA); and• Coordination of stakeholders to contribute to the implementation of the Comprehensive Rural

Development and Food security( technical and financial resources).

The key driver for this sub outcome is the (1) alignment to SPLUMA and (2) coordination. This sub outcome is a shared responsibility of all the three spheres of government.

Progress

Developing and implementing of the spatial development framework• A total of 13 municipalities were supported to implement spatial planning and land use

management Act (SPLUMA) in the Namakwa, Frances Baard, ZF Mgcawu and Pixley Ka Seme district Municipalities (SDF);

• A total of 9 municipalities were supported to implement spatial planning and land use management Act (SPLUMA)-land use schemes(LUS) in ZF Mgcawu.

• 100% of Municipalities were supported to implement the spatial planning and land use management Act (All 32 Northern Cape Municipalities);

• A total of 8 municipalities were supported with the implementation of SPLUMA (Spatial Planning and Land use Management Act) 8 Municipal Planning Tribunals (MPTs) for all 32 Northern Cape Municipalities; and

• A total of 4 Rural Development Plan guidelines were developed in the ZF Mgcawu, Namakwa, Pixley Ka Seme and Frances Baard.

Challenges

Challenges include:• Lack of alignment in all spheres of Government• Lack of comprehensive reporting• Poor attendance of PTIF meeting

Strategies have been put in plans to overcome challenges as per the Minmec and Mintech resolutions. To date, a service delivery workshop was held in the province for the purposes of the midterm reporting and the coordination mechanisms of the outcome. This was done so as to promote stakeholder engagement, so there is planning and reporting jointly. Herewith



Figure below illustrates the NC Service delivery workshop:

Output 2: Sustainable Land Reform contributing to Agrarian transformation

This sub outcome aims to acquire land for labour tenants, farm dwellers, smallholder farmers, AVMP and restored in terms of restitution Act). The key driver for this sub outcome is therefore acquisition of land. The targets that were set were as follows:• A total of 15,252 hectares to be acquired.• A total of 9073 hectares to be allocated to smallholder farmers• A total of 2984 hectares to be allocated to farm dwellers and labour tenants• A total of 14 Land Claims to be finalised and 15 land claims to be settled.• A total of 11 farmers should acquired to support Agri-Park• A total of 23 farms should be under recapitalisation

Progress

Hectares acquired.

A total of 36657.3518 ha of land was acquired in the Pixley Ka Seme, Frances Baard ( Kleindoornpan), John Taolo Gaetsewe, ZF Mgcawu ( Jackhauls Vley Farm no 107, Farm no 87 Bock Boerdery, WEJ Booerdery, Mosadifontein, Farm 83A and Farm 85).

A total of 3013.4181 hectares allocated to farm dwellers and labour tenants. A total of 11 Number of farms acquired to support Agri-Parks.

Land Claims Settled/ finalised

A total of 17 land claims were settled in John Taolo Gaetsewe, Frances Baard, Pixley Ka Seme and ZF Mgcawu. A total of 25 land claims were Finalised in ZF Mgcawu (Mooilaagte famly claims, Madibeng Comm claims), Pixley Ka Seme, John Taolo Gaetsewe (Keimoes Dry Erven, Zoutputs I42).

Output 3: Improved food security

This sub outcome aims to reduce the percentage of the total population that experiences hunger. The key driver for this output is therefore food security. It mainly supports the 1st phase of the



comprehensive rural development programme. It is made up of various delivery partners such as the DALRRD, DSD, DOE, DOH. The targets were set as follows:

• 1000 household should benefit from agricultural food security initiatives• 750 hectares to be cultivated for food production in communal areas and land reform projects.• 250 household gardens to be established• 5 institutional gardens to be established• 36000 vulnerable Households should accessing nutritious and affordable foods• 37000 beneficiaries who should benefitted from DSD social relief programmes• 217 school food gardens to be supported• 151 713 learners should benefit from the National School Nutrition Programme

Progress

A total of 1321 household benefitted from agricultural food security initiatives. A total of 837.5 hectares cultivated for food production in communal areas and land reform projects. A total of 574 household gardens were established. A total 17 institutional gardens were established.

A total of 290631 vulnerable Households have accessed nutritious and affordable foods. A total of 29486 beneficiaries benefitted from DSD social relief programmes.

A total of 3 new school food gardens were established in this financial year. Food gardens that are well looked after are supplementing the National School Nutrition Programme meal with the produce. Schools are also using food gardens as a living laboratory for learners. A total of 151 713 learners in 284 schools benefitted from the National School Nutrition Programme

Challenges

The coordination of food security requires a high level coordination that should be at the DALRRD and at the OTP.

Water is a scarce resource especially when communities must establish community or backyard gardens

The increasing number of vulnerable people within communities

Output 4: Smallholder producers development and support (technical, financial, infrastructure) for Agrarian Transformation

This sub-outcome is aimed at recapitalisation of farms, providing support to smallholder producer in order to ensure production efficiencies. It also provides support to farms in order to ensure production. The key driver for this sub-outcome is the support to smallholder producers. The targets were as follows:• 100% of water use authorisation applications finalised • Recapitalise farms• 500 smallholder producers should receiving supported• smallholder producers support with agricultural advice• 5000 epidemiological units to be visited for veterinary intervention• 63% percentage level of abattoir compliance to meat safety legislation • 21000 tests to be performed, the quality of which meets the ISO 17025_ and OIE requirement.• 360 clients to be serviced for animal and products export control• 50 Agricultural infrastructure to be established• 4600 hectares protected/ rehabilitated to be improve agricultural production

Progress

A total of 225 160/a (59ha) Percentage of water use authorisation applications were finalised.

A total of 574 smallholder producers supported. A total of 16 farms are under the recapitalization programme. A total of 4543 smallholder producers supported with agricultural advice. A total of 90 units of Agricultural infrastructure established. A total of 9300 hectares protected/ rehabitalised to improve agricultural production. A total of 3295 epidemiological units visited for veterinary interventions.



A total of 234.7percentage level of abattoir compliance to meat safety legislation. A total of 19721 of tests performed to the quality of which meets the ISO 17025 standard _and OIE requirements. A total of 295 Number of clients serviced for animal and animal products export control.

Challenges

Ownership of land as farmers cannot be supported without having access to land. Secondly grants can only contribute so much to farmers, they therefore need loans. These loans require security which they don’t possess as smallholder farmers.

Output 5: Increased access to quality infrastructure and functional services, particularly in education, healthcare and public transport in rural areas

This sub-outcome aims at:

Eradicating infrastructure backlogs in rural schools, Eradicate infrastructure backlogs in health facilities to meet national core standards. Provide ICT infrastructure to rural communities, Provide access to piped water in rural areas ( in the house, yard and 200m from the house, Provide access to sanitation services in rural areas, Provide access energy in rural areas, Improved transport infrastructure and public transport in rural areas. The sub-outcome is made up of various stakeholders such as DALRRD, DOE, DOH, COGHSTA, DWS, DOEnergy and Municipalities• 780 households should access to clean water – only WSIG• 24500 learners should subsidised with transport• 7 additional clinics, community health centres to be constructed and office facilities constructed• 3 additional hospitals and mortuaries to be constructed or revitalized

Progress

A total of 793 households accessed clean water - only WSIG. A total of 834 households were provided access to clean water. A total of 48693 learners subsidized with transport. A total of 5 additional clinics, community health centers constructed and office facilities constructed. A total of 4 additional hospitals and mortuaries were constructed or revitalized.

Output 6: Growth of sustainable rural enterprises and industries- resulting in rural job creation

This sub-outcome aims at;• Promoting sustainable rural enterprises and industries in areas with economic development

potential, • Promote skills development in rural areas with economic development potential.• Create job opportunities

To this end the following targets were set by the province:

11 new cooperatives to be established (agriculture);• Cooperatives to be supported;• 10 agri-Businesses should be supported with agricultural economic services to access markets; • 8 agricultural economic information responses to be provided;• 12 economic reports to be compiled;• 12 smallholder farmers should supported to access markets; • 700 clients should benefitted from agricultural economic advice provided;• A total of 135 farmers to be trained through the recapitalization and Development programme;• 240 skills development opportunities to be provided in rural development initiatives;• 1200 participants trained in agricultural skills development programmes;• 320 skills development opportunities should be provided to NARYSEC youth; • 15 agricultural graduates should deployed in rural projects;• 300 youth should be recruited through the Narysec programme;• 245 jobs to be created in rural development initiatives (REID); • 250 jobs to be created in rural development initiatives. (RID);• 1000 work opportunities to be created through EPWP (CASP and Ilima /Letsema);• 100 green jobs to be create; and • 270 jobs should be created in Land Reform farms through the Recapitalization and Development

Programme;



Progress

A total of 8 of new cooperatives established (agriculture). A total of 3 of cooperatives supported. A total of 8 of agri-Businesses supported with agricultural economic services to access markets. A total of 2 of agricultural economic information responses provided. A total of 10 economic reports compiled. A total of 3 smallholder farmers supported to access markets. A total of 474 clients benefitted from agricultural economic advice provided.

A total of 247 farmers trained through the recapitalization and Development programme. A total of 319 skills development opportunities provided in rural development initiatives. A total of 4513 participants were trained in agricultural skills development programmes. A total of 347 skills development opportunities provided to NARYSEC youth. A total of 10 agricultural graduates deployed in rural projects. A total of 179 youth recruited through the Narysec programme.

A total of 408 jobs created in rural development initiatives (REID). A total of 370 jobs created in rural development initiatives. (RID). A total of 708 work opportunities created through EPWP (CASP and ILIMA /LETSEMA). A total of 181 green jobs created. A total of 367 jobs were created in Land Reform farms through the Recapitalization and Development Programme.

Challenges

Stringent processes to register cooperatives/ enterprises. Job opportunities are limited as projects are in debt for example the Eskom high rates, making projects hire fewer people to save money.

Discussion

Coordination challenges

Difficulties include:• Non-alignment of institutions for planning and reporting purposes • Inadequate administrative support for the coordination of the outcome• Limited budget to participate in outcome 7 sessions at national, provincial and district level

Proposals

The following are the main proposals to emerge out of this Review :• Land reform must be better integrated with infrastructure and water provision and with agricultural

extension (farmer support) and marketing services• Enhancing inter-governmental relations through improved programme co-ordination amongst

Government Departments • Create monitoring, evaluation and enforcement mechanisms at the highest level for joint resource

allocation and implementation.

Outcome 4: Decent Employment through Inclusive Growth

Background and Basis for Outcome #4 Analysis

In response to achieving the objectives of the National Development Plan (NDP) which its vision includes better integration of the country’s rural areas, achieved through successful land reform, job creation and poverty alleviation, the Department of Agriculture, Land Reform and Rural Development, has developed a five-year vision or Medium Term Strategic Framework that spans from the financial year 2015 to 2020. The following key strategic indicators have been identified by the department as catalyst to achieve the 30-year ultimate goal of NDP in agriculture, fisheries and forestry sector: • Access to markets by both smallholder and commercial farmers, • Access to finance, • Co-operative formation and support, • Penetration of export markets particularly by the smallholder farmers,• Employment creation,

As well as rendering necessary support to all aspiring individuals in the sector including vulnerable groups of the society such as youth, female and people with disability.

Comparative analysis of the performance indicators between the two financial years, viz. 2015/2016 and 2016/2017 is done to with a view to track progress made with regard to achieving the NDP 2030 vision.



Access to Markets: Market Linkages Created

Figure1: Number of Agri-Businesses Supported to Access Markets

44

Access to Markets: Market Linkages Created Figure1: Number of Agri-Businesses Supported to Access Markets

The figure above indicates that there has been a huge decrease in the number of agricultural economic services given to agribusinesses with a view to help them access markets. The percentage decrease from 2015/2016 to 2016/2017 financial year has been recorded at 28%. In terms of the Medium Term Strategic Framework or vision 2015-2020 of the Department of Agriculture, Land Reform and Rural Development, only 32.4% of the targets have been achieved so far as opposed to 47.1% expected from the two years under review. This outlook is attributed to the fact that most projects are unable to meet market requirements due to quantity and quality of the produce as well as lack of their own transports to take produce to the market place. These factors as a result are caused them not to access sustainable markets. Access to Finance: Micro-Agricultural Finance Institution of South Africa (MAFISA)

During the financial years 2015/2016 and 2016/2017, the total amount of money disbursed to 65 MAFISA applicants was only R3, 725,000. The amount of money disbursed relative to the number of applications looks so small and this is attributed to the fact that fewer applications were received resulting in fewer screening committee meetings being held (see Figure 2 below) due to drought conditions experienced in the province, poor repayment rate by the farmers and some famers totally not meeting their financial obligations to the scheme resulted in National

6 5 -1

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Planned Target(s) Actual Achievement Deviation %Achievement

Access to Markets

The figure above indicates that there has been a huge decrease in the number of agricultural economic services given to agribusinesses with a view to help them access markets. The percentage decrease from 2015/2016 to 2016/2017 financial year has been recorded at 28%. In terms of the Medium Term Strategic Framework or vision 2015-2020 of the Department of Agriculture, Land Reform and Rural Development, only 32.4% of the targets have been achieved so far as opposed to 47.1% expected from the two years under review. This outlook is attributed to the fact that most projects are unable to meet market requirements due to quantity and quality of the produce as well as lack of their own transports to take produce to the market place. These factors as a result are caused them not to access sustainable markets.

Access to Finance: Micro-Agricultural Finance Institution of South Africa (MAFISA)

During the financial years 2015/2016 and 2016/2017, the total amount of money disbursed to 65 MAFISA applicants was only R3, 725,000. The amount of money disbursed relative to the number of applications looks so small and this is attributed to the fact that fewer applications were received resulting in fewer screening committee meetings being held (see Figure 2 below) due to drought conditions experienced in the province, poor repayment rate by the farmers and some famers totally not meeting their financial obligations to the scheme resulted in National Emergent Red Meat Producers Organisation (NERPO) as an intermediary suspending the scheme.

Figure 2: Number of Screening Committee Meetings Held to Process Applications

45

Emergent Red Meat Producers Organisation (NERPO) as an intermediary suspending the scheme. Figure 2: Number of Screening Committee Meetings Held to Process Applications

Establishment of New Co-operatives During the two financial years under review, the department has achieved 100% of the planned targets (see Figure 3 below). This translates to 46.3% progress made towards achieving departmental 5-year vision as expected. Figure 3: Number of New Co-operatives Established

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Access to Finance

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Co-operatives Established



Establishment of New Co-operatives

During the two financial years under review, the department has achieved 100% of the planned targets (see Figure 3 below). This translates to 46.3% progress made towards achieving departmental 5-year vision as expected.

Figure 3: Number of New Co-operatives Established

45

Emergent Red Meat Producers Organisation (NERPO) as an intermediary suspending the scheme. Figure 2: Number of Screening Committee Meetings Held to Process Applications

Establishment of New Co-operatives During the two financial years under review, the department has achieved 100% of the planned targets (see Figure 3 below). This translates to 46.3% progress made towards achieving departmental 5-year vision as expected. Figure 3: Number of New Co-operatives Established

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Co-operatives Established

Export Markets

Figure 4: Number of Export Opportunities Created

46

Export Markets Figure 4: Number of Export Opportunities Created

During the two financial years under review, the department has achieved far beyond planned targets (i.e. 500% and 250%) financial years 2015/2016 and 2016/2017 respectively. (see Figure 4 above). However, it should be noted that these are not necessarily actual linkages to export markets but exposure given to smallholder farmers to various potential international investors. Support to the Vulnerable Groups Support to the Youth and Female Farmers The government is committed to promote the inclusion of both youth and women owned agricultural enterprises with a view to address the issue of gender based inequality, poverty, unemployment amongst women and youth, improve food security as well as stimulating local economies. During the two financial years under review, the department made considerable strides to support many youth farmers as possible. It has achieved far beyond planned targets (i.e. 102% and 184%) financial years 2015/2016 and 2016/2017 respectively. (see Figure 5 below). This translates to 65% progress made towards achieving departmental 5-year vision against expected target of 53.4%.

1 5 4

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Export Markets

During the two financial years under review, the department has achieved far beyond planned targets (i.e. 500% and 250%) financial years 2015/2016 and 2016/2017 respectively. (see Figure 4 above). However, it should be noted that these are not necessarily actual linkages to export markets but exposure given to smallholder farmers to various potential international investors.



Support to the Vulnerable Groups

Support to the Youth and Female Farmers

The government is committed to promote the inclusion of both youth and women owned agricultural enterprises with a view to address the issue of gender based inequality, poverty, unemployment amongst women and youth, improve food security as well as stimulating local economies. During the two financial years under review, the department made considerable strides to support many youth farmers as possible. It has achieved far beyond planned targets (i.e. 102% and 184%) financial years 2015/2016 and 2016/2017 respectively. (see Figure 5 below). This translates to 65% progress made towards achieving departmental 5-year vision against expected target of 53.4%.

Figure 5: Number of Youth Farmers Supported

47


Figure 6: Number of Female Farmers Supported

As for the support rendered to the female farmers, the was a huge improvement from the financial year 2015/2016 to 2016/2017 (see Figure 6 above). This translates to 59% progress made towards achieving departmental MTSF targets against expectation of 38%.

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183

73

166

210

325

115

155

0

50

100

150

200

250

300

350


Female Farmers Supported


47




160 163

3

102

50

92

42

184 210

255

45

121

0

50

100

150

200

250

300

Planned Target(s) ActualAchievement

Deviation %Achievement

Youth Farmers Supported

100

142

42

142 110

183

73

166

210

325

115

155

0

50

100

150

200

250

300

350


Female Farmers Supported


Employment Creation

The Northern Cape Department of Agriculture, Land Reform and Rural Development finds its expression within the NDP vision 2030 and trajectory that aim to support all employment intensive programmes and initiatives especially those that target the youth and women. Investment in new sources of growth



as clearly defined in the NDP statement of intention will be encouraged and incentivised. The NDP provides a long-term vision through 2030 for accelerating GDP growth so that unemployment and inequality can be reduced and for creating a more inclusive society (National Planning Commission, 2011).

Jobs from Expanded Public Work Programme (EPWP)

The figure below indicates that year-on-year, there was a percentage drop of 27% on jobs created through CASP and Ilima-Letsema. This is attributed to poor quality of evidence submitted from districts, during implementation of projects in the financial year 2016/2017. So far, only 34% progress has been made towards achieving the MTSF target as opposed to 40% expected from the two years under review.

Figure 7: Number of Jobs Created through EPWP

48

Employment Creation The Northern Cape Department of Agriculture, Land Reform and Rural Development finds its expression within the NDP vision 2030 and trajectory that aim to support all employment intensive programmes and initiatives especially those that target the youth and women. Investment in new sources of growth as clearly defined in the NDP statement of intention will be encouraged and incentivised. The NDP provides a long-term vision through 2030 for accelerating GDP growth so that unemployment and inequality can be reduced and for creating a more inclusive society (National Planning Commission, 2011). Jobs from Expanded Public Work Programme (EPWP) The figure below indicates that year-on-year, there was a percentage drop of 27% on jobs created through CASP and Ilima-Letsema. This is attributed to poor quality of evidence submitted from districts, during implementation of projects in the financial year 2016/2017. So far, only 34% progress has been made towards achieving the MTSF target as opposed to 40% expected from the two years under review. Figure 7: Number of Jobs Created through EPWP

Green Jobs As for the green jobs, despite the performance regression experienced in the financial year 2016/2017 yielding the percentage drop year-on-year of 42.4% (see Figure 8 below). There was a progress witnessed in terms of meeting the MTSF target as recorded at 51.1% against 40% expected from two financial year.

1000 1032

32 103

1000 708

292 74

2000 1790

324 90

-500

0

500

1000

1500

2000

2500


Employment Created Through EPWP (CASP & Ilima-Letsema

Green Jobs

As for the green jobs, despite the performance regression experienced in the financial year 2016/2017 yielding the percentage drop year-on-year of 42.4% (see Figure 8 below). There was a progress witnessed in terms of meeting the MTSF target as recorded at 51.1% against 40% expected from two financial year.

Figure: 8: Number of Jobs Created through Green Jobs

49

Figure: 8: Number of Jobs Created through Green Jobs

Outcome 6: An efficient, competitive and responsive economic infrastructure network


According to the Planning Commission on the National Development Plan (Vision 2030) South Africa needs to invest in a strong network of economic infrastructure designed to support the country’s medium and long-term economic and social objectives. This economic infrastructure is a precondition for providing basic services such as electricity, water, sanitation, telecommunications and public transport, and it needs to be robust and extensive enough to meet industrial, commercial and household needs.

In response to achieving the objective of outcome#6 which seeks to address the issue of lack of growth stimulating infrastructure, the Department of Agriculture, Land Reform and Rural Development made considerable strides in the following farmers’ fundamental and developmental areas: Projects implemented through Comprehensive Agricultural Support Programme (CASP) ,Ilima-Letsema as well as agricultural infrastructure established.

100

243

143

243 200

140

-60

70

300

383

83 128

-100-50

050

100150200250300350400450


Green Jobs

2015/2016 2016/2017 Total



Outcome 6: An efficient, competitive and responsive economic infrastructure network


According to the Planning Commission on the National Development Plan (Vision 2030) South Africa needs to invest in a strong network of economic infrastructure designed to support the country’s medium and long-term economic and social objectives. This economic infrastructure is a precondition for providing basic services such as electricity, water, sanitation, telecommunications and public transport, and it needs to be robust and extensive enough to meet industrial, commercial and household needs.

In response to achieving the objective of outcome#6 which seeks to address the issue of lack of growth stimulating infrastructure, the Department of Agriculture, Land Reform and Rural Development made considerable strides in the following farmers’ fundamental and developmental areas: Projects implemented through Comprehensive Agricultural Support Programme (CASP) ,Ilima-Letsema as well as agricultural infrastructure established.

Comparative analysis of the performance indicators between the two financial years, viz. 2015/2016 and 2016/2017 is done to with a view to track progress made with regard to achieving the NDP 2030 vision.

Support to Smallholder Farmers

During the two financial years under review, the department has achieved 100% of the planned targets (see Figure 1 and 2 below). This translates to 51% progress made towards achieving departmental 5-year vision as expected on CASP and 41.3% on Ilima-Letsema.

Implementation of Comprehensive Agricultural Support Programme (CASP) Projects

Figure 1: Number of CASP Projects Implemented

50

Comparative analysis of the performance indicators between the two financial years, viz. 2015/2016 and 2016/2017 is done to with a view to track progress made with regard to achieving the NDP 2030 vision. Support to Smallholder Farmers During the two financial years under review, the department has achieved 100% of the planned targets (see Figure 1 and 2 below). This translates to 51% progress made towards achieving departmental 5-year vision as expected on CASP and 41.3% on Ilima-Letsema. Implementation of Comprehensive Agricultural Support Programme (CASP) Projects Figure 1: Number of CASP Projects Implemented

Implementation of Ilima-Letsema Projects Figure 2: Number of Ilima-Letsema Projects Implemented

25 25

0

100

25 25

0

100

50 50

0

100

0

20

40

60

80

100

120



CASP CASP CASP



Implementation of Ilima-Letsema Projects

Figure 2: Number of Ilima-Letsema Projects Implemented

51

Establishment of Agricultural Infrastructure The department achieved targets planned in both financial years under review with more strides made during 2016/2017. This has translated into 56% progress made in an effort to achieve the 5-year departmental vision against expectation of 41% from the two years. Figure 3: Number of Agricultural Infrastructure Established

17 17

0

100

14 14

0

100

31 31

0

100

0

20

40

60

80

100

120



2015/2016 2016/2017 Total

54 54

0

100

50

88

38

176

104

142

38

137

020406080

100120140160180200


Establishment of Agricultural Infrastructure

2015/2016 2016/2017 Total


The department achieved targets planned in both financial years under review with more strides made during 2016/2017. This has translated into 56% progress made in an effort to achieve the 5-year departmental vision against expectation of 41% from the two years.

Figure 3: Number of Agricultural Infrastructure Established

51

Establishment of Agricultural Infrastructure The department achieved targets planned in both financial years under review with more strides made during 2016/2017. This has translated into 56% progress made in an effort to achieve the 5-year departmental vision against expectation of 41% from the two years. Figure 3: Number of Agricultural Infrastructure Established

17 17

0

100

14 14

0

100

31 31

0

100

0

20

40

60

80

100

120



2015/2016 2016/2017 Total

54 54

0

100

50

88

38

176

104

142

38

137

020406080

100120140160180200



2015/2016 2016/2017 Total



4. Performance Information by Programme

4. 1 Programme 1: Administration

Purpose: The purpose of this programme is to manage and formulate policy directives and priorities and, to ensure there is appropriate support service to all other programmes with regard to finance, personnel, information, communication and procurement.

Sub- Programmes:• Office of the MEC• Senior Management• Corporate Services• Financial Management• Communication Services

Strategic Objectives: • To determine policy and set priorities for the department• To provide strategic leadership and support throughout the organization• To ensure effective human resource management of 624 employees• To provide sound financial and risk management support services to the department• To provide communication services and Information Technology support

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives:

Programme: 1 Administration

Strategic objective Actual Achievement2015/2016

Planned Target 2016/2017

Actual Achievement 2016/2017

Deviation from planned target to Actual Achievement for 2016/12017

Comment on deviations

To determine policy and priorities for the department

- 4 3.7 1 -0.3 The requirements for level 4 in 3 out of 10 standards were not met.

To provide strategic leadership and support throughout the organization

6 4 3.8 2 -0.2 The requirements for level 4 in 1 out of 4 standards were not met.

To ensure effective human resource management of 624 employees

- 3 2.4 3 -0.6 The requirements for level 3 in 7 out of 11 standards were not met.

To provide sound financial and risk management support services to the department

- 3 3.3 4 3 The requirements for level 3 in 2 out of 9 standards were not met.

To provide communication services and Information Technology support

- 4 4 0

1 The output has been calculated by averaging all the sores under the Governance and Accountability KPA2 The output has been calculated by averaging all the sores under the Strategic Management KPA3 The output has been calculated by averaging all the sores under the Human Resource Management KPA4 The output has been calculated by averaging all the sores under the Financial Management KPA



Performance Indicators

Sub-programme: 1.2. Senior Management

Performance Indicators Actual Achieve-ment 2013/2014

Actual Achieve-ment 2014/2015

Actual Achieve-ment2015/2016



Devia-tion from planned tar-get to Actual Achieve-ment for 2016/12017

Comment on devia-tions

1.2.1 Number of performance reports Produced

5 5 5 5 5 0

1.2.2 Number of performance plans developed

1 2 2 2 2 0

1.2.3 Number of evaluations conducted

- 1 0 1 1 0

1.2.4 Number of monitoring reports produced

- - - 3 3 0

Sub-programme : 1.3 Corporate Services






Devia-tion from planned target to Ac-tual Achieve-ment for 2016/12017


1.3.1 Percentage of employees Performance Agreement and assessment captured on Persal

- - - 80% 99% 19% Target was over achieved as all employees are expected to submit EPMDS documents

1.3.2 Submission of the approved employee health wellness operational plan

- - - 1 1 0

1.3.3 Number of Agricultural Higher Education And Training graduates

- - - 5 6 1 The target was over achieved due to one student that had to graduate in the previous year only completed his studies in 2016

1.3.4 Number of officials to be vetted

- 58 62 80 80 0

1.3.5 Number of PAIA reports produced

- - 3 4 3 -1 In quarter 1 we could not conduct intended training program due to unavailability of targeted officials.

1.3.6 Number of PAJA reports produced

- - 3 4 3 -1 In quarter we could not conduct intended training program due to unavailability of targeted officials.

1.3.7 Number of implementation plans on Management of diversity

- - - 4 4 0



Sub-programme : 1.3 Corporate Services






Devia-tion from planned target to Ac-tual Achieve-ment for 2016/12017


1.3.8 Repot on the analysis of the exit interviews

- - - 1 1 0

Strategy to overcome areas of under performance

Regular joint meetings by all sub directorates to review performance of each unit in Corporate Services. Constant reviews of implementation plans and strategies. Enforcement and application of consequence management on any matters of ill-discipline (late coming, absenteeism, poor work performance etc.)

Sub-programme : 1.4 Financial Management







Comment on devia-tions

1.4.1 Number of In-Year Monitoring reports

- - - 12 12 0

1.4.2 Number of MTEF budget submissions

- - - 1 1 0

1.4.3 Number of expenditure and revenue projection reports

- - - 1 1 0

1.4.4 Number of monthly compliance certificates on or before due date

10 12 - 12 12 0

1.4.5 Number of annual and interim financial statements

5 5 - 3 3 0

1.4.6 Number of risk management reviews conducted

- - - 4 4 0

1.4.7 Number of statistical reports regarding procurement submitted to the provincial treasury on or before due date

8 12 - 12 12 0

1.4.8 Number of DAMP reports submitted to the provincial treasury on or before due date

- - - 12 12 0

1.4.9 Number of reports on verified and reconciled asset registers

4 1 - 4 4 0


Sub-programme : 1.5 Communication Services








1.5.1 Communication plan developed

1 1 1 1 1 0



Sub-programme : 1.5 Communication Services








1.5.2 Number of publications produced

50 46 25 52 50 -2 The publication of the weekly brief are always produced on a Friday, due to some of the shorter weeks in the year (e.g. Easter week), information of the shorter week was combined in the information of the week that followed

1.5.3 Number of media campaigns

16 17 29 15 30 15 Due to proactive action efficient planning by the unit.Due to ad-hoc activities not in the original plan.

1.5.4 Number of ICT support provided

200 566 661 1400 1124 -276 Minimal use of helpdesk portal by the end users.


The unit is going to have one on one meeting with all directorates to discuss matters in relation to information sharing. Monthly informative notices will be send out to all end users on how to utilize the Helpdesk Portal.

Changes to planned targets

None

Linking performance with budgets

Sub programme expenditure

Pr 1: Administration: 2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Office of the MEC 12 680 12 680 - 11 018 10 999 19

Senior Management 22 454 22 452 2 20 356 20 356 -

Corporate Services 45 658 45 658 - 41 600 41 600 -

Financial Management 27 908 27 908 - 24 185 24 184 1

Communication Services

9 908 9 908 - 9 332 9 333 -1

Total 118 608 118 606 2 106 491 106 472 19

SERVICE DELIVERY HIGHLIGHTS

4.1.1 Human Resource Management

The department currently employs a total of 606 employees, of which 570 are permanent employees and 36 are on a contractual basis. Staff vacancy rate was 8.1.



We confirm that all filled vacancies can be accounted for due to our monthly payroll certifications confirmed by the different program managers, therefor the PERSAL system reflects all warm bodies in the department. In the previous financial year, 2015/16, Human Resources coordinated the provincial biometrics headcount. The department then embarked on a departmental headcount in an attempt to ensure accountability for value of capital resources.

To ensure that employees perform optimally and that they remain motivated they are continuously encouraged to further their studies. For the year under review a total of 21 employees were awarded bursaries in different study fields. The bursary scheme also assists the unemployed youth to further their studies in various fields. A total number of 44 were funded and 6 graduates from the previous group. The later initiative is to continue expanding our pool of technical fields to narrow the gap of skill scarcity in the department.

The EPMDS Compliance has improved and the department complied with signing and capturing of PA’s for all the 9 SMS members on PERSAL in accordance with MPAT requirements.

We have seen an increase of officials’ participation in the Health and Wellness programme in terms of celebration of wellness awareness days for the financial year in review. We held four (4) wellness days in collaboration with GEMS and the Department of Health wherein officials tested for blood pressure, diabetes, cholesterol, IBM measurements and HIV/AIDS.

The use of sick leave in the department has decreased as opposed to the previous financial year. This may be attributed to the intensive assessments and rejection of temporary incapacity cases by the Health Risk Manager, Pro-Active Health Solutions.

Management of leave remains a challenge, however, control measures were put in place to attempt to achieve our goal. HRM established a leave advisory panel in districts in order to strengthen controls in leave management.

4.1.2 Legal Services and Logistics

PAJA mainstreaming was embarked on to review PAJA compliance on veterinary business processes. Workshops conducted with project leaders on the legal implications of service level agreements.

Workshops on the implementation, application and implications of Promotion of Administrative Justice act (PAJA) and Promotion of Access to Information Act (PAIA) reaching more than one hundred (100) officials across the province from different levels.

The department managed to purchase its Head Office building it previously rented from Delta Properties which realised a saving of about R350 000. 00 per month. The transport policy was also reviewed.

4.1.3 Security Management

We have coordinated vetting of officials and submitted eighty (80) security clearance forms to SSA this year. It remains the responsibility of the Security Management unit to conduct the pre - screening of applicants as part of assistance to the recruitment process. A name list of eleven (11) applicants was submitted to SSA.

4.1.4 Records Management

The procurement and installation of steel bulk filing shelves for the registry office at Head Office was done. This process was done to incorporate the records of the HOD and Human Resources Director into the system at registry.

Following the approved DESTRUCTION REGISTER by the Provincial Archivist we were required to complete for signature by the accounting officer a disposal procedure and regulation. The guideline or register will indicate which records were destroyed and which records will be disposed of in that year. The departmental disposal certificate which is being issued after the destruction of records was issued.



4.1.5 Gender

The unit managed to host four (4) gender forum meetings, three (3) gender capacity building sessions in Frances Baard, Upington and Namakwa District. Outreach programmes were held in Namakwa, John Taolo Gaetsewe, Pixley Ka Seme, Frances Baard and ZF Mgcawu for the community (farmers) and officials. A Departmental Plan and Report for 2016/17 was compiled, approved and forwarded to DPSA.

Job Access

A Job Access departmental plan and report were compiled, approved and submitted to DPSA. An awareness session was hosted in Frances Baard District for Human Rights of lesbians, gays, bisexual, and transgender (LGBT

4.1.6 Communication and ICT

Offices visited during the period under review

Kuruman Vet, Springbok, De Aar, De Aar vet, Colesberg, Victoria West, Prieska, Carnarvon, Calvinia, Calvinia Vet and Hope Town. Most of the computers were checked for virus updates and configured to be inventoried on Spice Works.

Progress with the Website revitalisation

The website http://agrihelpdesk.ncpg.gov.za was created and is active for fault reporting on spice works and is working very well. We have sent out numerous mails informing personnel to log faults on the website and or either send an email to [email protected] for IT assistance.

We are in consultation with Microsoft Partners through Microsoft SA on further deployment of Microsoft Cloud Infrastructure including the Active Directory and a workshop will be held.

This workshop will prepare our IT staff to support and manage Microsoft cloud infrastructure after the deployment.

Tabular representation of the performance and call resolution of all Presidential Hotline queries/cases (October 2016 to March 2017)

Department No. of Open Calls

No. of Resolved Calls

Avg. Time to Resolve (Gov. Bus. Hrs)

Total Calls

% Resolved 31 March 2017

% Resolved Oct 2016 - Feb 2017

NC Dept. of Agriculture, Land Reform and Rural Development

1 39 2386 40 97,5% 100%

We had two Imbizo for farmers during the period under review addressed by deputy minister of Agriculture, Forestry and Fisheries, General Bheki Cele in the Phokwane municipal district.

Taking up slots on agricultural topics at most community radio stations and Interviews conducted by radio and TV on Agricultural matters.

Francis Baard Farmers Day Communication Support to Farmers of the District during their interactions.

State of the Province Address by Premier Lucas, Kimberley

Branding and Exhibitions

Premier’s Youth Launch, Upington Branding and Exhibitions

Minister Jeff Radebe’s Visit to Kimberley Branding and Exhibitions

Niewoudtsville Community Meeting Communication and Technical Support

MEC Shushu Community Outreach Programme (Sanitary Towels and School Uniform) Leratong Park.

Communication and Technical Support



4.2 Programme 2: Sustainable Resource Management

Purpose: The purpose of the programme is to provide agricultural engineering support service to farmers in order to ensure sustainable development and management of agricultural resources.

Sub- Programmes:• Engineering Services;• LandCare;• Land Use Management; and• Disaster Risk Management.

Strategic Objectives:• To provide engineering support (planning, development, monitoring and evaluation) with regards to

irrigation technology, on-farm mechanization, value adding, farm structures, resource conservation management, operation and maintenance of farm equipment, machinery, tools, and implements solutions;

• To plan and coordinate the implementation of 25 LandCare projects;• To Promote sustainable use of natural resources through the implementation of regulated land use

Act (Act 43 of 1983, Act 70 of 1970, and related legislation); and• To provide agricultural disaster risk management support services to clients/farmers by

implementing programmes on disaster plans for droughts, veld fires and floods.



Programme: 2 Sustainable Resource Management






To provide engineering support (planning, development, monitoring and evaluation) with regards to irrigation technology, on-farm mechanization, value adding, farm structures, resource conservation management, operation and maintenance of farm equipment, machinery, tools, and implements solutions.

54 50 88 38 All 50 planned, funded projects were completed. At final planning and design stage it became clear that for some projects the infrastructure can best be established by more than one tender. Each tender need a final completion certificate. This resulted in more completion certificates issued than the target.

To plan and coordinate the implementation of 25 LandCare projects

- 6 6 0

To Promote sustainable use of natural resources through the implementation of regulated land use Act (Act 43 of 1983, Act 70 of 1970, and related legislation)

- 25 22 -3 Demand driven, Less application received.

To provide agricultural disaster risk management support services to clients/farmers by implementing programmes on disaster plans for droughts, veld fires and floods

- 1 1 0



Performance indicators

Sub-programme: 2.1 Engineering Services








2.1.1 Number of Agricultural infrastructure established

- - 54 50 88 38 All 50 planned, funded projects were completed. At final planning and design stage it became clear that for some projects the infrastructure can best be established by more than one tender. Each tender need a final completion certificate. This resulted in more completion certificates issued than the target.


None

Sub-programme: 2.2 LandCare






Deviation from planned target to Ac-tual Achieve-ment for 2016/12017


2.2.1 Number of hectares protected/rehabilitated to improve agricultural production

- 2000 7363 4600 4700 100 Surplus material was utilised to rehabilitate an additional 100ha of rangeland prone to soil erosion at the Pixley Ka Seme Soil Care project situated in Richmond (Ubuntu local municipality)

2.2.2 Number of green jobs created

221 188 243 100 153 53 Bush control projects in the John Taolo Gaetsewe and Z.F Mgcawu districts; commenced late in the financial year which necessitated the project team to increase the number of workers in order to complete the project on scheduled time and set out targets.

2.2.3 Number of awareness campaigns conducted on LandCare

1 2 2 2 2 0

2.2.4 Number of capacity building exercises conducted within approved LandCare projects

2 2 2 2 2 0



Sub-programme: 2.2 LandCare








2.2.5 Number of beneficiaries adopting/practising sustainable production technologies & practices

6 100 100 100 100 0


None

Sub-programme: 2.3 Land Use Management








2.3.1 Number of hectares of agricultural land protected through guiding subdivision/rezoning/change of agricultural land use

- - 1591 200 16609 16409 Indicator demand driven. Very high output is result of applications received for rezoning for mining rights for large areas


None

Sub-programme: 2.4 Disaster Risk Management








2.4.1 Number of disaster risks reduction programme managed

12 12 12 12 12 0

2.4.2 Number of disaster relief schemes managed

3 1 1 1 1 0


None


None





Pr 2: Sustainable Resource Management:

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Engineering Services 7 126 7 126 - 4 944 4 941 3

Land Care 9 320 9 306 14 7 440 7 439 1

Land Use Management 15 055 14 815 240 16 789 16 789 -

Disaster Risk Management

64 197 64 197 - 68 327 68 327 -

Total 95 698 95 444 254 97 500 97 496 4


This programme provides essential engineering and land use management support to the 5 mega-investment projects of the department and their outputs will cut across various other departmental programmes.

4.2.1. Engineering Support for Development of Infrastructure and Mechanisation Systems to Increase Production, Food and Product Processing and Marketing

4.2.1.1 Namakwa Irrigation Development

The Namakwa Irrigation Development is an NDP compliant initiative to Expand Irrigated Agriculture by 2030 and is one of the five long-term provincial mega-investment projects of the Department worth R1.7 billion along the lower Orange River. The entire project when fully developed, has potential to generate R521 million per annum in value of production and create 3 447 direct jobs.

The project scope is to develop 3 200 Ha high potential arable land in the Namakwa district along eleven distinct

riverine areas and with Onseepkans as the anchor. In the year under review, the plan for Onseepkans was to develop 40 Ha of vineyards, install the Bulk Water distribution system for the water distribution to the 268 Ha plots (118 Ha of which belong to emerging farmers), finalise the EIA process for the construction of the solar powered pump station and reservoir, initiate the EIA process for the further development of the 260 Ha of table grapes on virgin lands.

In terms of progress, the department established an implementation committee made up of the department, implementing agent and consulting engineers for the entire Namakwa Irrigation Development initiative to monitor on the ground progress.

Trellising and Irrigation systems were installed for the planned 40 Ha and only 23 Ha were planted with raisin vineyards. The window for planting in Onseepkans is very narrow and heavily dependent on the weather. The risk became high to plant the remaining portions due to high temperatures.



Progress regarding the installation of the mother pipes as well as the temporary pump station was also completed in the year under review. These pipes essentially replaces the earth canal of Onseepkans and modernizes the irrigation infrastructure of Onseepkans.

The Implementation committee had regular meetings to monitor the work of the implementing agents and the consulting engineers with various onsite inspection meetings throughout the year.

In terms of the EIAs, the Record of decision (ROD) for the solar-driven pump station and reservoir was issued in the 3rd of quarter of the financial year and the plans for the construction were finalised.

The EIA for the 260 HA virgin land for table grapes is also at an advanced stage of completion but it is likely to be concluded in the 2017/18 financial year. Soil surveys and mapping of the area is complete.

In other areas of the Namakwa Irrigation Development, micro-irrigation systems were installed at Pella for the development of 15 Ha of vineyards, trellising system was installed at Coboop for the development of 10 Ha of vineyards.



4.2.1.2 Rooibos Development

The programme continues to give engineering support to the Nieuwoudtville Rooibos Factory and although the factory is running independently as a private business, the department is giving guidance regarding the development of further value added products as part of the 9 point plan and Revitalization of Agriculture and Agro-processing Value-Chain (RAAVC).

In the year under review, the factory embarked on the construction of a concentrate / extract and aroma factory as well as product development of beauty products. The intention being to further develop SMMEs in the downstream.

The concentrate and aroma factory was completed and commissioned in November 2016 and due to immediate availability of tea dust, the factory could immediately produce some concentrate and aroma.

Concentrate / extract is a high value product and news of our production sparked interest in international buyers.

The factory together with government, is looking at further SMME development in the compost / coal and executive tea boxing areas. Discussions are at an advanced stage and a complete plan will be presented in the next financial year with possible sources of funding.

The factory has expanded its reach firmly into the Western Cape and in the year under review, secured tea from the Wuppertal emerging farmers and a community of 1500 members with over 200 years of tea producing heritage.



4.1.2.3 Vanderkloof Trout Cage Culture and Inland Fisheries

This mega-investment project will see the development of Vanderkloof Dam as the hub of trout farming in the country with the capacity to produce 11 000 tonnes of trout when compared to 1500 tonnes current national production. It is also in line with the NDP. Further progress details of the Trout Cage culture project will be reported under programme 5.

Engineering support was provided for the Inland Fisheries project in Vanderkloof for the upgrading of an existing building into a small scale fish processing facility.

Further support was provided for the Aquaculture Research project which seeks to upgrade and convert existing reservoirs at the Vaalharts Research Station in order to research the feasibility of inland fish production.

4.2.1.4 Vaalharts Revitalization Scheme

Revitalization of the Vaalharts / Taung Irrigation Scheme is a multi-year, Strategic Integrated Project 11 (SIP11) worth R4 billion and was also identified as one of the 5 provincial mega-investment projects with Ganspan as the anchor. This project is consistent with the aspirations of the NDP’s expansion of irrigated agriculture objectives as well as water conservation policies.

In the year under review, the plan was to engage strategic partners and commodity groups involved in the Pecan nuts industry currently involved in the Ganspan community development with a proposal to work towards a common goal.

Contact was made with the South African Pecan nuts Association (SAPPA) who are currently utilizing 20% of their levies for developing 20 households of Ganspan with Pecans.

This group presented their plan to the departmental technical meeting and joint discussions proposed making the Vaalharts Research Station the centre of Pecan nuts research in the country while developing the Ganspan area. 120 Ha of the research station was identified for such a research initiative and engineering services developed the irrigation infrastructure plan for such an eventuality.



In terms of Ganspan, 210 plots have 0.85 Ha water entitlement but the current infrastructure is inadequate to support such an initiative. The plan was therefore to present a total infrastructure revamp plan costed at R88m and involve various role-players for a 3 year funding plan. In the year under review, such a plan was presented and included in future CASP funding.

The pink coloration of some plots indicates where trees are already planted.

In terms of the general progress with regards to the Vaalharts Revitalization scheme, 2944m of communal main drainage pipelines were installed to service 720 hectares of sub-surface drainage water for irrigation areas adjacent to Jan Kempdorp and plots of block I6. A total of 28 plots were surveyed and sub- surface systems designed to drain 900 ha and this includes the 200 ha water logged land to be drained at Ganspan.

Concrete lined reservoirs were constructed at Kalkputs and VH20 to irrigate 57 and 20 Ha respectively. Furthermore, subsurface drainage system to service 25.6 hectares of irrigation land was completed at Plot 7h14.

4.2.1.5 Vineyards Development Scheme

The Vineyards Development Scheme is primarily coordinated by Programme 3 of the department but substantial engineering support was provided by Programme 2. The role of engineering services is to survey and design irrigation systems associated with the scheme and design and construction of storage and processing facilities.



To that end, engineering services assisted as follows:• Blocuso - Design one raisin drying facility, security fence and install a 9ha micro-irrigation system

to establish vineyards.• Eiland Women project – Construction of security fence completed. • Lemoendraai - A storage facility was constructed.• Nomalanga – Complete soil preparation to establish 10 ha vineyards.• Silver Moon – Construction of raisin drying facilities and security fence completed and recommend

mechanisation package.• Vaaldrift – Install netting, trellis and micro-irrigation systems to develop 40 ha irrigation.

4.2.2 LANDCARE

The LandCare programme is a community based and government supported approach to the sustainable management of the utilisation of agricultural natural resources and was conceptualised by the South African Government in 1997.

The LandCare programme is currently one of Government’s key programmes that addresses presidential outcomes 4, 7 and 10 and for the 2016/17 financial year, was funded to the tune of R9, 302 m.

4.2.2.1 Rangeland protected/rehabilitated to improve agricultural production

A total of 4700ha was rehabilitated by implementing a total of six (6) projects across the province. The following projects were implemented during the 2016/2017.

Project name Local municipality

John Taolo Gaetsewe VeldCare Joe Morolong

Pixley Ka Seme SoilCare Ubuntu

Z.F Mgcawu VeldCare Dawid Kruiper

Niekerkshoop Prosopis control Siyathemba

Northern Cape LandCare awareness All districts

LandCare administration All districts

4.2.2.2 Creation of Green Jobs

The term “green jobs” is used to classify job opportunities created under the environmental sector. The provincial LandCare programme created a total of 153 jobs during the implementation of projects.

The job specs included amongst others the implementation of a veld management program, fencing, application of herbicides and implementation of a bio-engineering program aimed at curbing soil erosion.



4.2.2.3 Promotion of LandCare Awareness

The LandCare programme hosted two (2) LandCare awareness days to heighten the knowledge of farming and none farming communities about conservation of natural resources.

A land-users (Farmers) focused LandCare awareness campaign on rangeland management practices was also conducted. These LandCare awareness days were held in the John Taolo Gaetsewe and Frances Baard districts and was attended by councilors, traditional authority, Farmer’s unions, LandCare committees.

4.2.2.4 7th Biennial National LandCare Conference, 2016

The Biennial National LandCare conference is a National Awareness event encapsulated in the awareness strategy to halt land degradation.

The importance of this countrywide awareness on land degradation is anchored within the vision that people are the custodians of the land and are therefore key for any sustainable interventions and livelihoods.

The LandCare National conference was co-hosted by the Department of Agriculture, Forestry and Fisheries (DAFF) in partnership Provincial Department of Agriculture, Land Reform and Rural Development and it is held once every two (2) years.

National LandCare Conference 2016

Junior LandCare



The 7th Biennial National LandCare Conference was held in Kimberley from the 3rd-6th October 2016 and was attended by 1031 delegates; consisting of: • Farmers from nine provinces (including Junior LandCare participants).• District and local municipalities.• MECs, mayors, traditional authority and councilors (politicians).• Department of Agriculture, Forestry and Fisheries management and officials.• Provincial departments of agriculture and other relevant departments.• African LandCare Networks members (ALN).• Natural Resource Management consultants and NGOs.• South African and international public.• Agricultural Research Council (ARC). • Media fraternity.• Food security ambassadors.

4.2.3. SUSTAINABLE LAND USE MANAGEMENT

Engineering inputs were delivered to ensure sustainable utilisation of agricultural resources as provided for in the Conservation of Agricultural Resources Act; Act 43 of 1983.

4.2.3.1 Subdivision/rezoning/change of agricultural land use

Distribution of adequate stock water on rural and land reform farms is one of the limiting factors to ensure effective utilisation of rangeland by emerging stock farmers.

Stock water systems were designed, service providers appointed and construction of stock water systems completed: Support towards development of stock water:

District Number of projects/ Farms Serviced

Boreholes Drilled

Pumps Installed

Windmills Installed/ Upgraded

Stock Water Systems Installed/ Upgraded

Area Serviced with Stock Water (Ha)

John Taolo Gaetsewe

42 17 16 7 17 71 089

ZF Mgcawu 6 11 29 700

Pixley Ka Seme 11 7 12 1 12 9526

Namakwa 4 4 24 7 24 159 877

Frances Baard 4 3 3 2 1 401

Total 61 34 66 18 55 271 593

4.2.3.2 Sub-Surface Drainage and Lining of Irrigation Dams

To solve the problem of water logging and salinization of irrigation land a programme was implemented to support farmers to install sub-surface drainage systems and to line old leaking irrigation dams.

ZF Mgcawu –

Three farm plans with all relevant documents were compiled for one sub-surface drainage system (5 works) with a total length of 729 m on 5 land partials to be installed at a total value of R 531 740.

Vaalharts Revitalisation –

Install 2944m of communal main drainage pipelines to service 720 hectares of sub-surface drainage water for irrigation areas adjacent to Jan Kempdorp and plots of block I6.

Plot 7H14 – Installation of a subsurface drainage system to service 25.6 hectares of irrigation land was completed.



A total of 28 plots were surveyed and sub- surface systems designed to drain 900 ha. This includes the 200 ha water logged land to be drained at Ganspan.

Ten communal main drainage pipelines were designed to service 1350 ha of sub-surface systems on irrigation plots.

4.2.4 DISASTER MANAGEMENT

4.2.4.1 Disaster Risk Reduction

The department implemented programmes aimed to minimize the agricultural vulnerabilities and disaster risks. It includes prevention, mitigation, adaptation, prediction and early warning systems. The following activities were implemented in support during the year:

Early warning system –

Twelfth (12) early warning reports have been generated for the whole province and disseminated to farmers through extension services and communication as an integral component of an effective Early Warning System.

Awareness campaigns -

The objective of the campaigns is to promote a culture of risk avoidance among stakeholders by capacitating them through integrated education, training and public awareness programmes informed by scientific research.

The disaster unit conducts annual disaster training for extension officials in order to capacitate them regarding hazard specific risks for Agriculture.

African Centre for Disaster Studies was contracted to conduct and facilitate an accredited course in Basic Disaster Management for extension officials. Training was conducted from the 6th – 8th December 2016 in Upington for 16 extension officials.

4.2.4.2 Agricultural Disaster Management Veld Fire Plan

The department has embarked on a process of conducting and completing disaster management hazard specific plans (Floods, Drought and Veld Fires).

The purpose of the whole project is to be pro-active towards disaster risks affecting the agricultural sector and to ensure a well-coordinated planning and response to disasters. Stakeholder workshops were held and final workshop took place on the 1st of December 2016 and final inputs and amendments were captured and booklets, cd’s, USB developed.

4.2.4.3 Disaster Relief Schemes Implemented

Drought Aid Schemes

Severe drought conditions that developed during 2015 continued and the province was classified as a provincial state of drought disaster on 12 of April 2016 by National Disaster Management Centre.

The conditions deteriorated during 2016 and NDMC through DAFF has allocated R25 million to the Northern Cape Department of Agriculture for drought relief.

Four of the five districts; Frances Baard, John Taolo Gaetsewe, Pixley Ka Seme and biggest part of ZF Mgcawu received good rains during the summer season of October 2016 – February 2017.

In January 2017 it was assessed that the Namakwa district and a small area in the west of ZF Mgcawu district (Kenhardt) did received very little to no rain since October 2016.DAFF procured 73 000 bags of drought pellets at a cost of R20.44 million for distribution to farmers in the identified drought stricken areas of Namakwa district.



The distribution is at present in process.

The remainder of the R25 million (R4.5 million) will be utilised for the transport of donated animal feed from various locations to further support the farmers in need.

Flood Assistance Scheme

In November 2015 an amount of R64 million was suspended to be made available in the 2016/2017 financial year to complete the following work that could not be completed by 31 March 2016:

• Onseepkans bulk water supply infrastructure – An EIA – ROD was issued by Department of Nature Conservation and Environment in October 2016.

• A distribution pipeline of 9.77 km replacing the old earth canal was installed. Construction of river pump station and dam will be done during 2017/ 2018 after issuing of a Water Use Licence by Department of Water and Sanitation.

• Blocuso Islands - Repair of 38 small bridges and roads for farmers to access their irrigation lands on the islands were completed.

• Eksteenskuil farms – A total length of 3930m of river streams that silted up during the flood, supplying irrigation water to the farmers, were cleaned with excavating machines.

• Sub-surface drainage systems were installed to service 36.8 ha water logged irrigation lands. In total 10 626m of drainage pipes were installed.

• Repair of flood walls along the banks of the Orange River in ZF Mgcawu district continued with the completion of 27 flood diversion works on 31 land partials. A total length of 17 515 meters of walls were constructed at a cost of R 39.103 million.



4.3 Programme 3: Farmer Support and Development

Purpose: The purpose of the programme is to provide support to farmers and rural communities through agricultural development programmes.

Sub- Programmes:• Farmer settlement and development;• Extension and advisory services; and• Food security.

Strategic Objectives:• To provide agricultural support to 8400 smallholder and commercial producers for sustainable

agricultural development;• To provide extension and advisory services to 25 000 farmers; and• To provide support to 10 000 food insecure households by 2020.



Programme: 3 Farmer Support and Development

Strategic objective Actual Achieve-ment2015/2016





To provide support to 8400 smallholder and commercial producers for sustainable agricultural development

2622 1650 773 -877 Less producers were supported due to commercial farmers are depending primarily on private institutions. E.g Griekwaland West Kooperasie (GWK),Orange River Wine Cellars(ORC) and commodity groups

To provide extension and advisory services to 25 000 farmers

4390 5000 5494 494 More producers supported due to completion of most projects at district level.

To provide support to 10 000 food insecure households by 2020

1895 2000 1899 -101 Some of the beneficiaries migrated from their original address and it became difficult to locate them.

Performance indicators:

Sub-programme: 3.1 Farmer Settlement and Development

Strategic objective Actual Achieve-ment 2013/2014







3.1.1 Number of smallholder producers receiving support

209 222 2622 500 773 273 More producers supported due to completion of most project s at district level

3.1.2 Number of municipalities supported to manage commonages

23 12 27 27 27 0

3.1.3 Number of landholding institutions provided with support

12 16 20 16 16 0




The aim is now to revive the commonage with support of organised agriculture, municipality and the department. Proper monitoring has been put into place to ensure the proper running of the committee

Sub-programme: 3.2 Extension and Advisory Services








3.2.1 Number of smallholder producers supported with agricultural advice

5963 3897 2685 2500 3965 1465 Additional advice was provided by other farming stakeholders and commodity partners. E.g. SAPA & GWK

3.2.2 Number of participants trained in Agricultural skills development programmes

- - 1372 1200 1523 323 The target was over achieved due to participation from stakeholders. E.g. ARC, GWK, SAPA, GADI & officials from Department of Land Reform & Rural Development.

3.2.3 Number of commodity groups supported

- - 6 6 6 0

3.2.4 Number of Projects Supported with CASP

19 22 25 25 25 0

3.2.5 Number of Projects Supported with Ilima/Letsema

13 19 17 14 14 0

3.2.6 Number of youth farmers supported

26 151 163 50 98 48 Youth farmers received production inputs( Fetsa Tlala ) , infrastructure and training

3.2.7 Number of female farmers supported

59 122 142 110 183 73 More female farmers received production inputs & requested advice on agricultural production and training

3.2.8 Number of work opportunities created through EPWP (CASP & Ilima/ Letsema)

1046 1046 1032 1000 708 -292 Less work opportunities were created due to Richtersveld crop production project not being implemented.


More jobs will be allocated to construction projects.



Sub-programme: 3.3 Food Security








3.3.1 Number of households benefiting from agricultural food security initiatives

558 693 1157 1000 1322 320 More households were supported due to collaboration and assistance from Department of Agriculture, Forestry and Fisheries (DAFF) with provision of starter packs.

3.3.2 Number of hectares cultivated for food production in communal areas and land reform projects

- - 1308.44 750 812.5 62.5 Contribution and support from stakeholder’s such ARC Potchefstroom with planting of beans led to more hectares achieved.

3.3.4 Number of household gardens established

500 353 698 250 574 324 More households requested garden starter packs to address the increase in food prices by establishing their own food gardens.

3.3.5 Number of institutional gardens established

20 12 20 5 17 12 More request received from different institutions for establishment of gardens to support beneficiaries with balanced diet e.g. soup kitchens


None


None



Pr 3: Farmer Support & Development

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Farmer-Settlement and Development

4 411 4 411 - 4 108 4 108 -

Extension and Advisory Services

217 754 202 940 14 814 236 073 233 822 2 251

Food Security 4 720 4 720 - 5 415 5 415 -

Total 226 885 212 071 14 814 245 596 243 345 2 251




4.3.1 Smallholder Producers Receiving Support

Support was in the form of production inputs especially for Fetsa Tlala Food Production Programme where farmers from districts received seeds, fertilizer and diesel. The following projects received inputs; Kamiesberg Grain Project, all 16 projects under Fetsa Tlala in the Frances Baard District and 4 projects in Pixley Ka Seme.

The support included:• Supply and delivery of chicken feed in different poultry projects at John Taolo Gaetsewe;• Construction of fencing on livestock farms at Kareeberg Farms in Pixley Ka Seme District;• Supply and delivery of production inputs on various projects;• Supply and delivery of trellis material on vineyard projects at ZF Mgcawu & Namakwa Districts;• Supply and delivery of fencing material for construction and completion of 7km of border fence at

Masselfontein & Katlani in Douglas and another 20km at Bontheuwel in Grikwastaad at Pixley Ka Seme District;

• Construction of 10km border fence and supply and delivery of 9 mobile handling facilities at Umsobomvu Commonage in Colesberg; and

• Construction of stock handling at Mier Livestock Project for proper livestock management. The two piggery projects in Phillipstown received 275 bags of feed.

Installation of stock water system was done at the following projects:• Installation of water pipes at Waterfall, Groenville, Middleplaas and Borrelskop Commonage Farms

in Frances Baard District where water pipes were installed for improved livestock production in the district;

• Drilling of 12 boreholes and testing 8 at Siyathemba Livestock Infrastructure Project in Niekerkshoop and Koegas; as well as at Driehoek Farm and Colesburg Commonage in Pixley Ka Seme District;

• The support continued at Geselskapbank Project in Namakwa and Eksteenfontein at ZF Magcawu District;

• Installation of windmill, reservoir and 600m pipeline to supply 75 households with drinking water at Babatus in John Taolo Gaetswe District; and

• Installation of 3 solar and submersible pumps to support Reries CPA with livestock water in Gasegonyana Municipality. Solar pumps at Vredebron farm to support 10 farmers with livestock water in Gamagara Municipality.

4.3.2 Smallholder Producers Supported With Agricultural Advice

A total of 3965 farmers received agricultural advice on various aspects of production to improve their yield and income through farmer’s days, information days and demonstrations, site visits and meetings. All this extension techniques aims at increasing the level of knowledge as well as skills of farmers to increase production. The advice included the following application to request a farm of Land through Department of Rural Development and Land Reform, Grazing Management on livestock farms, How to apply for MAFISA, Record keeping in farming business, Safety and health issues in handling of raisins, Milk Goat Production, Mentorship Programme, Drought Relief, Calibration of planter and boom sprayer, Departmental Funding Programmes, Vegetable Production

4.3.3 Commodity Groups Supported

A total of 6 commodity groups were supported (Poultry; Warrenton Super chicken, Red meat; Nguni Farmers, Wine and raisins; Blocuso, Grain ; Fetsa Tlala Projects in , Pixley and Frances Baard, Deciduous fruit; ZF Mgcawu were supported during the quarter in the various districts through technical support, supply of production inputs and infrastructure development on livestock farms

Support was in the form of fence, supply and delivery of production inputs; seed, fertilizer, diesel, on grain projects. SA GAP training was provided to Blocuso Trust Grain projects received production inputs in the form of seed, fertilizer, diesel, pesticides through Fetsa Tlala Food Production Programme. The aim of this support was to improve the production and farm profit on different commodities



4.3.4 Farmers Trained

Training was provided to 1 615 farmers in all 5 districts. Officials from the Department including, Extension officials, Economists, Animal Health Technicians and other officials from Department of Land Reform & Rural Development, GADI, SAPA, GWK & ARC conducted various training sessions on the following topics:

Lucerne Production; Financial Record keeping; Irrigation Scheduling; Hydroponics Management; Small stock Management; Cattle Production; Integrated Pest Management; Safe handling of chemicals & Crop rotation; Pig Farming; Establishment of Food Garden; Control of blackthorn; Construction of fence; Herd Health Management and principles of Livestock pricing and marketing; Maize Production under Irrigation; PPECB Principles and Good Agricultural Practices (GAP) Farmworker training; Application of pesticides; Animal Husbandry; Animal Health management for large stock; Vegetable Production; Broiler Production; Herd Health management and principles of livestock; Veldt Management; and Re-seeding methods.

4.3.5 Youth Farmers Supported

Department focused the support to Youth in the Province through infrastructure development, supply of production inputs and training. In total, 98 young farmers were supported during 2016/17 financial year and amongst them, 54 of them received production inputs through Fetsa Tlala Programme for planting of wheat and maize at Pniel and Windsorton Small farmers (Kalkput). Pniel Youth Cooperative managed to produce wheat at 1st grade and was marketed at GWK in Barkley West

Youth farmers supported with inputs at Kalkput Farm Frances Baard

4.3.6 Female Farmers Supported

Through departmental funding programmes, 187 female farmers received support through technical advice, training establishment of household food gardens, mechanization, Livestock Improvement Programme, Vaccination Programmes, and infrastructure development through CASP & Illima/ Letsema Funding. Some of the Women benefited from provision of production inputs for planting of wheat and maize through Fetsa Tlala Food Production Programme.

Female Entrepreneur Awards (FEA) is an instrument and platform through which women’s contribution to fight against poverty is being recognized. It also seeks to appreciate women who are leaving an indelible mark in the sector.The 2016/17 Provincial FEA was held at Keimoes in the ZF Mgcawu District on the 11th of August 2016 with 45 participated in various categories. Unfortunately the export farmer, Ms Dina Strauss passed on before



Provincial Winners

45 participants vied for glory in the following categories, and the winners were:

CATEGORY NAME OF WINNER PRIZES

Best Female Worker in the sectors Ms Denise Smith R 50 000

Best Subsistence Producer in the SectorsRunner up

Ms Annah GaetseweMs Maria Lombaard

R 75 000R 25 000

Top Entrepreneur in the Sectors: SmallholderRunner up

Ms Maria Kantwan Bomme ke Nako

R125 000R 32 000

Top Entrepreneur Processing in the SectorsRunner up

Warrenton Super ChickenCoboop Agric Co-op

R125 000R 32 000

Top Entrepreneur in the Sectors: CommercialRunner up

Ms Martha SawaalMs Margret Francis

R125 000R 32 000

MEC Special Award/s (Youth) (Disabled)

Ms Candice BostanderMs Lena Kotze

R 50 000R 50 000

Overall Winner Ms Maria Kantwan R250 000

Total R971 000

All 6 the winners represented the province at the National Female Entrepreneur Awards in Polokwane Limpopo Province, were Ms Candice Bostander was the Best Youth in the Ministerial Award and Warrenton Super Chicken, Best Entrepreneur in Processing Category. Prize money for the Ministerial Award amounted to R100 000, and for Best Entrepreneur Processing was R250 000. The winners also received a subscription of Extension Suite on Line and tablet each.

Martha Saawal- provincial winner commercial Category

4.3.7 Job Creation through CASP & Illima/ Letsema

708 temporary jobs were created in all 5 districts through implementation of CASP & Illima projects in the Province.

Activity Number of jobs District

Vineyard Development 361 ZF Mgqawu & Namakwa

Irrigation Infrastructure 73 ZF Mgqawu & Frances Baard

Fencing Construction 49 Pixley Ka Seme & John Taole Gaetsewe

Stock Water reticulation 10 Frances Baard

Vaalharts Revilization 76 Frances Baard

Crop Production 82 Frances Baard, John Taole Gaetswe & Pixley Ka Seme

Stock Handling Facilities 4 ZF Mgqawu



Construction of stock handling facilities at Kalkput

Some of the 59 casual workers during harvesting of grapes at Blocuso Trust

4.3.8 Fetsa Tlala Food Production Programme

This initiative aims at putting 1million hectares of unproductive land into production job creation and to address challenges of food security in the Province. A total of 812.5 ha were planted with various crops in the province. The main crops planted were Maize, wheat, oats and dry beans. The achievement are indicated in the table below

District Product/ Crop Ha Yield per ton Price per ton Total tonnage

Frances Baard

Maize 379 11ton/ha 2 500 1 422

Wheat 237 10ton/ha 3 400 2 200

Dry beans 5 2ton/ha 12 000 10

Pixley Ka SemeMaize 126 10ton/ha 2 600 1 386

Wheat 20 11ton/ha 3 500 700

Namakwa Oats 25 1ton/ha 25

ZF MgcawuRaisin Grapes 17 3.5ton/ha 25 000 1 419.5

Wine Grapes 3.5 40ton/ha 1 400 56 000

Total 812.5

Planting of 24ha of maize & newly installed centre pivot at Kalkput Farm



Progress on growth stages of maize at Plot 7H14 Ms Fourie Frances Baard

Combined harvester harvesting wheat at Pardenkamp Farm in Frances Baard

Centre pivots at Kalkput

Centre pivot at Lechwiti Farm both in Frances Baard



4.3.9 Vineyard Development Programme

The following activities were completed at the different projects.

Irrigation systems:

A micro Irrigation system for 9.03 ha is completed at Blocuso Trust and in Nomalanga a bulk irrigation system for 70ha is completed. At Lemoendraai the supply, delivery and construction of the pipelines to replace the canal system is completed.

Harvesting in Process at Blocuso Trust

Harvested grapes and drying of raisins at Blocuso Trust

Drying Facility.

All the fencing material to fence off the drying facilities at Eksteenskuil as well as the upgrading and construction of the drying facilities at Silver Moon is completed.

Soil preparations

The soil preparation for 10 ha at Eksteenskuil as one of the vineyard project at ZF Mgcawu is completed for expansion of the vineyard development and this will increase and improve farm profit of farmers.

Storing facilities & Trellis material

The store at Lemoendraai is completed for safety and security of the implements, tractors and production inputs and trellis for planting of 10ha at Nomalangha was delivered to prepare the planting process.Completed Drying facility at Silvermoon

Vineyard Project



4.3.10 Namakwa Irrigation Development

Pella Vineyard Project

Construction of Trellis and irrigation system for vineyard development is at completion and soil preparation of 15ha for expansion of the 2nd phase is also completed. Planting of the 15ha land is completed.

Coboop Vineyard Project

Trellis system 10ha constructed, 10ha of vineyard cuttings are planted and trellis material for planting of second phase is delivered. Construction of bulk water system for proper irrigation is in completed.

43.11 Mechanization Programme

Different mechanization items were procured and delivered to the following projects through CASP & Illima Funding; Plot 7H14 Female farmer in Frances Baard District and Delivery of tractor at Eiland Wine Project. (Tractor & implements). Supply and delivery of 2 x 65kw tractors and disc plough at Kamiesberg Grain Development and one 6 ton trailer at Kharkams in Namakwa District. Supply and delivery of new tractor and implements at Eiland Women Wine Project

4.3.12 Livestock Production & Development Programme

The programme is aimed at genetic improvement of livestock farmer flock by introduction of genetic material or breeds for quality and optimal livestock production and sustainable utilisation of resources to enhance farming profit. During the year under review, 86 farmers were supplied with subsidized animals to improve genetic. In total, 83 farmers were supported with breeding stock. The support was as follows

Number of Breeding Livestock Supplied to Farmers

District Type of Animals Total

Frances Baard Bonsmara BullsBonsmara Heifers

726

Pixley Ka Seme Bonsmara BullsMerino EwesMeri no Rams

450015

John Taolo Gaetsewe Bonsmara BullsHeifers

1320

ZF Mgcawu Bonsmara Heifers 15

Total Animals 604

The Richmond Opkomende Boere Cooperative project in Ubuntu municipality received 500 stud merino ewes and 15 merino rams in order to improve the quality and quantity of wool production in the district

Livestock Infrastructure

Siting, testing and drilling of boreholes in Collesburg, Madibeng, Bendel, Babatas, Dikgweng CPA, Churchil, Gamopedi CPA and Loopeng.

Three livestock handling facilities were constructed at Esparenza, Padstow, and Occidental Ranch in John Taolo Gaetsewe



Stock water system at Umsobomvu Commonage

4.3.14 Extension Recovery Plan (ERP)

Pillar 2: Promote Professionalism and Improve Image

17 officials attended the 50th Commemorative Conference of the South African Society for Agricultural Extension (SASAE) held in Gauteng. The theme of the conference was “Quo Vadis (Where are you going?) and 12 Extension practitioners received SACNASP membership certificates

Of the 67 Extension officials in the Province, 4 of them and 2 managers attended Extension Conferences in North West & Free State and the other 4 officials attended Intermediate Poultry Production Training through KZN Poultry Institute to acquire more knowledge on Poultry Production and transfer skills to different poultry Projects beneficiaries in the Province.

Pillar 4: Re-skilling & Re-orientation

Advanced computer training was attended by 11 Extension officials and the duration of the training course was ten days and was held in Kimberly at SMME Centre. The course was offered at an NQF level 3 by Harvex Computer Solutions.

Three officials mainly from John Taole Gaetsewe and ZF Mgcawu completed their studies in the following:• 2 officials- Project Management,• 4 officials- Advanced Diploma in Agricultural Extension,• officials -Management Development Programme

The objective of these qualifications is to improve officials on Extension work

4.3.15 Food Security

World Food Day Commemoration

The Food and Agriculture Organization (FAO) of the United Nations has been celebrating the World Food Day (WFD) on 16th October for the past 35 years, therefore the Department celebrates this initiative where one district is identified where the event takes place. A successful world food day event was hosted by Frances Baard District in Pampierstad; Phokwane Municipality. In total, 2000 local people and farmers from neighbouring villages attended in line with the theme “Climate is changing. Food and agriculture are too”.

Department distributed 30 garden starter packs. These included different vegetable seedlings, garden equipment, various vegetable seeds, beetroot, spinach, carrots and cabbage. As part of the build-up campaign, 70 household gardens from neighbouring villages were established. MEC Mr Shushu together with Local Mayor and Councillors visited three projects:



• 7H14 Plot for Ms Fourier where the Department assisted with funding for procurement of inputs through Fetsa Tlala Programme, Procurement of implements, construction of overnight dam and installation of sub surface drainage system and centre pivots through Ilima/ Letsema funds

• Moso Irrigation Project in Jan Kempdorp was visited where Department assisted four farmers through conditional grant and procurement of Fetsa Tlala Production inputs. Unfortunately the farm burned down during December 2015 where all implements and storage facility were totally destroyed.

• Oreratile Ostrich Project in Pampierstad was visited. The project has 4 beneficiaries and received funding through CASP for procurement of equipment, ostrich houses, truck, construction of fence, procurement of production inputs and wages

Household & Institutional Gardens Established

Through the integrated food security initiatives, 1 322 households were supported with poultry and garden starter packs to address challenges of food insecurity and in addition 574, household gardens were established to improve the nutritional status of beneficiaries. 17 institutional gardens were established at different municipalities as part of the integrated food security initiative approach and to support affected communities.

Establishment of institutional garden at Plaatfontein Local Church

New shade structure at Bomme Ke Nako Community Food Garden Project at JTG



4.4 Programme 4: Veterinary Services

Purpose: The purpose of the programme is to provide veterinary services to clients in order to ensure healthy animals, safe animal products and welfare of people of South Africa

Sub- Programmes:• Animal Health• Export Control• Veterinary Public Health • Veterinary Laboratory Services

Strategic Objectives:• To prevent, control and eradicate animal diseases for 6,5 million animals through surveillance

programmes, vaccination, inspections and training;• To provide 1000 health certifications for import and export of animals and animal products;• To promote the safety of meat and meat products at harvesting level through the registration and

monitoring of abattoirs; and• To provide diagnostic services (150 000 tests) to veterinary personnel, farmers, food processing

plants and private veterinarians.



Programme: 4 Veterinary Services






To prevent, control and eradicate animal diseases for 6,5 million animals through surveillance programmes, vaccination, inspections and training

6.5M 6.5M 6.5M 0

To provide 1000 health certifications for import and export of animals and animal products

304 360 396 36 The increase in certification is due the increase in the exporting of meat particularly from Beefmaster to China. Beefmaster was approved to export frozen beef meat to China by the Chinese delegation that visited the country

To promote the safety of meat and meat products at harvesting level through the registration and monitoring of abattoirs

76% 63% 80.2% 17.2% Regular stringent visits were conducted to ensure that the abattoirs comply with the act.

To provide diagnostic services (150 000 tests) to veterinary personnel, farmers, food processing plants and private veterinarians

23195 21000 28356 7356 The laboratory was recommended for SANAS accreditation in the last quarter. More samples were subsequently received in the last quarter because Private veterinarians and farmers had confidence in the test results as a result of the accreditation.



Performance indicators

Sub-programme: 4.1 Animal Health

Performance Information Actual Achieve-ment 2013/ 2014

Actual Achieve-ment 2014/ 2015

Actual Achieve-ment2015/ 2016

Planned Target 2016/ 2017

Actual Achieve-ment 2016/ 2017



4.1.1 Number of epidemiological units visited for veterinary interventions

- - 2083 5000 3055 -1945 Attention and focus was on controlling the spread of ASF outbreak in Pniel during the last quarter. Officials spent more time visiting the area as part of disease control than other farms. The BLNS protocol allows for imports of animals from neighbouring countries almost weekly and veterinary officials have to be present during offloading to break the seal and do physical count. Visitation to these abattoir count only once.


The performance indicator for 4.1.1 has been reviewed for 2018/19 going forward by DAFF. From 2018/19, the performance indicator will refer to number of visits to epidemiological units and not epidemiological units visited.

Sub-programme: 4.2 Export Control

Performance Indicator Actual Achieve-ment 2013/2014







4.2.1 Number of clients serviced for animal and animal products export control

145 125 304 360 383 23 The increase in certification is due the increase in the exporting of meat particularly from Beefmaster to China. Beefmaster was approved to export frozen beef meat to China by the Chinese delegation that visited the country


None

Sub-programme: 4.3 Veterinary Public Health








4.3.1 % level of abattoir compliance to meat safety legislation

- - 76% 63% 80.2% 17.2% Regular stringent visits to abattoirs by VPH officials ensured that non-conformances were rectified in time

4.3.2 Number of Food Safety Campaigns conducted

14 12 12 16 16 0




None

Sub-programme: 4.4 Veterinary Lab Services

Strategic objective Actual Achieve-ment 2013/2014







4.4.1 Number of tests performed the quality of which meets the ISO 17025 standard and OIE requirements

28346 25108 23195 21000 28720 7720 Number of samples wincreased in the last quarter after the laboratory was recommended for SANAS accreditation. Private veterinarians and farmers showed confidence in the lab by sending their samples to the lab.

4.4.2 Number of audits reports

1 1 - 6 10 4 More pre-audits were conducted in preparation for the SANAS accreditation in order to ensure that non-conformances were rectified before the SANAS audit.


None


None



Pr 4: Veterinary Services

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Animal Health 31 604 31 604 - 29 999 29 665 334

Export Control 96 96 - 1 564 1 562 2

Veterinary Public Health 5 653 5 653 - 5 227 5 228 -1

Veterinary Laboratory Services

7 306 7 306 - 6 227 6 227 -

Total 44 659 44 659 - 43 017 42 682 335




4.4.1 Animal Health

Over the past few years, the country has experienced an increase in demand for veterinary services among small scale farmers. Government responded by introducing the Compulsory Community Service (CCS) and Primary Animal Health Care (PAHC) programmes.

The programmes offer newly qualified veterinarians the opportunity to provide accessible and affordable primary animal health care services to rural communities in the province. Prieska which is mainly a sheep farming area and De Aar abattoir will each receive a CCS veterinarian starting from January 2017.

Kuruman and Kimberley also received 2 CCS vets. This brings the total number of CCS vets in the province to 6. The CCS vets have already participated in a number of spay campaigns, farmers days and assisted at the Tankwa goat project with the sampling of genetic material from feral goats.

This financial year, we received 4 LWB 4x4 bakkies from the Department of Agriculture Forestry and Fisheries to be used by the CCS veterinarians in the province during call-outs.



Surveillance for Peste des Petite Ruminant (PPR) also known as ‘goat plague’ in the high risk areas of the province is on-going. The surveillance information is needed to confirm South Africa’s freedom from PPR.

So far, the samples collected from susceptible species in the province came back negative. Awareness campaigns on the disease are on-going.

As indicated in the previous annual report, the roll out of the national Veterinary Public Health food safety project for 2016/17 to the rest of the districts began on the 1st April 2017. To date, 75 meat handling outlets have been profiled ranging from butcheries to supermarkets. This was a joint effort with Environmental Health unit from the local municipalities.



Revamp of UBALO system to improve our reporting and data capturing was completed successfully. The new look system is user-friendly and makes reporting very easy. Training was arranged for officials and this initiative is already starting to yield the desired outcomes.

4.4.1.1 Animal Disease Control

One case of mortalities in Clarias gariepinus (African Catfish) was undertaken after a report from a concerned citizen.

These mortalities were occurring in the Homestead sewerage treatment plant settler tanks. Due to the advanced stages of autolysis in the carcasses, no post mortem was carried out. The area is fenced out and the public health concerns from these fish is minimal.

The outflow of treated effluent to the Kamfers dam is negligible exacerbating the drying off of the dam. The water levels have drastically fallen and the flamingos have departed from the dam. The dam now resembles a dry pen. Monitoring of Kamfers dam is continuing.

The border fence inspection in the Upington area took place from 31 October 2016 till 3 November 2016. The inspection of the border fence during the indicated timeframe was done after numerous complaints were received from farmers along the border.

The concerns were referred to the Department of Agriculture Forestry and Fisheries (DAFF) since border fence maintenance is the function performed by officials from DAFF. The farming community were requested to alert the DAFF official of any problems on the fence. The involvement of the farming community along the border to keep the fence in good condition is appreciated.

4.4.1.2 Controlled and Notifiable Diseases

Due to the good rains we had this year, state veterinarians and animal health technicians were inundated with reports of horses dying due to African Horse Sickness.

Control measures applied brought the disease under control. We also had to deal with high numbers of vector-borne diseases such as Lumpy Skin, Ephemeral fever as well as parasitic conditions. Farmers were advised to vaccinate their animals and to treat with insecticides.

Figure 1: Map generated from UBALO report



4.4.1.2.1 African Swine Fever (ASF)

Two separate cases of African Swine Fever (ASF) were reported last year in Schweizer Reneke in the North West province and on a farm near Koffiefontein in the Free State. The veterinary services undertook a survey of the pig population and production systems as a response to the African Swine Fever (ASF) outbreak in North West and Free State Provinces. The province shares common borders with these 2 provinces. No evidence of exposure to ASF was picked up during the survey.

Few month later, the department received a report that pigs were dying in numbers in Pniel. This is a small community with free ranging pigs. African Swine Fever (ASF) was suspected and samples were collected and sent to Onderstepoort Veterinary Institute (OVI) for confirmation.

The disease was confirmed positive by polymerase chain reaction (PCR) by the OVI OIE (World Organization for Animal Health) reference laboratory. This is the first case of ASF to be reported in the province, prompting Veterinary Service to impose movement restriction of live pigs and pig products in Pniel.

Molecular typing of the virus is similar to the Koffiefontein strain and confirms the suspicion that there was definitely introduction of the virus from outside. Stamping out of pigs was successfully executed. Fourteen (14) pigs were euthanized and approximately eighty pigs died overall.

We are continuing with awareness campaign and at the same time intensifying surveillance on all nearby premises to determine the extent of the spread. We are working with the Agricultural Research Council on a project to establish if the warthogs played a role in the transmission of the disease (sylvatic cycle).

4.4.1.2.2 Bovine Tuberculosis

One buffalo was euthanized for post mortem following suspicious reactions to the comparative intradermal tuberculin test. The culture results came back positive for Mycobacterium tuberculosis and Mycobacterium bovis. The variable number of tandem repeats (VNTR) of the M. bovis revealed a general strain.

The National Institute for Communicable Diseases helped in the 24 loci VNTR of the M. Tuberculosis and it is a strain not known.

Currently five farms are under quarantine and three farms that had suspicious reactions were cleared as non-specific reactions probably due to non-tuberculous mycobacteria (NTM) and the quarantine was lifted.

The industry is expected to grow and to demand more services. More farms are being registered to keep buffaloes.

4.4.1.2.3 Rabies

During the rabies month celebration, our officials did not only focus on the vaccination of animals against rabies but also saw the need to educate the nursing staff from various clinics in the province about the rabies treatment protocol and the importance of the disease. This important zoonotic disease is 100% preventable and September month is celebrated internationally as rabies month.



4.4.1.2.4 Anthrax

The annual anthrax vaccination campaign in the anthrax endemic area of Schmidtsdrift as well as Heuningvlei and Springbok areas. The campaign in Schmidtsdrift involved collection of blood for testing of bovine brucellosis. An initial survey had shown a spiking prevalence of 20.1% (national average 1.8%). Public health awareness campaigns on the zoonotic potential of brucellosis had been undertaken in the area. The control of bovine brucellosis using the test-and-slaughter method remains a challenge in communal set ups. Resistance to slaughter is great and since most of these animals are one epidemiological unit, selective culling in willing households is futile. The response to the zoonotic threat of bovine brucellosis seems apathetic in the least within the community.

4.4.1.2.5 Avian influenza (AI)

Surveys for avian influenza (AI) have been on-going during this period. Two cases of H6N8 in chickens were noted in Epoch in Kimberley and Modderivier. Although it is known to be non-virulent, studies have shown increased circulations of H6N8 in chickens before outbreaks of virulent avian influenza in ostriches. The challenge of re-assortment of the AI virus especially when they jump species is still a cause of concern.

4.4.1.2.6 Rift Valley Fever (RVF)

The De Aar reported a case of Rift Valley fever on a farm in Colesburg. The Polymerase Chain Reaction test result was positive for RVF but upon further investigation, it was concluded that this was purely vaccine strain reaction and not the wild strain reaction. As a result, no control measures were put in place. However farmers are still advised to vaccinate their livestock against RVF as a preventative measure.

4.4.1.2.7 Malignant Herd Catarrhal Fever

An interesting case of Malignant Herd Catarrhal Fever was noted in a buffalo. On polymerase chain reaction (PCR), this was noted as sheep-derived.

4.4.2 Veterinary Public Health

4.4.2.1 Training, extension and Liaison

Schools No of learners reached

Food-Safety

Public institutions

Farmers days

Community out-reach programs

Calvinia 1 10 0 3 0 0

De Aar 9 9118 1 12 1 1

Kimberley 1 0 1 2 0 2

Kuruman 11 10260 1 8 2 1

Mothibistad 16 2477 2 9 6 1

Springbok 9 1285 1 4 0 2

Upington 5 2645 1 4 0 1

Grand Total 52 25795 7 42 9 8



4.4.2.2 Distribution of Abattoirs

123

7.1.2 Veterinary Public Health

7.1.2.1 Training, extension and Liaison Schools No of

learners reached

Food-Safety Public institutions

Farmers days

Community out-reach programs

Calvinia 1 10 0 3 0 0

De Aar 9 9118 1 12 1 1

Kimberley 1 0 1 2 0 2

Kuruman 11 10260 1 8 2 1

Mothibistad 16 2477 2 9 6 1

Springbok 9 1285 1 4 0 2

Upington 5 2645 1 4 0 1

Grand Total 52 25795 7 42 9 8

7.1.2.2 Distribution of Abattoirs

A total of 198 routine abattoir inspections were carried out at the 60 (49 red meat and 11 poultry) abattoirs throughout the year. Two brand new slaughter facilities were registered in ZF Mgcawu (Desert Beef abattoir) and Frances Baard (Muttlam abattoir) respectively. The unit deems this in a very positive light given the socioeconomic challenges of the province.

Kimberley De Aar Kuruman Calvinia Upington Mothibstad Springbok

Red Meat 10 12 6 8 6 1 6Poultry 5 1 3 0 2 0 0

02468

101214

Distribution of Abattoirs 2016 - 2017

A total of 198 routine abattoir inspections were carried out at the 60 (49 red meat and 11 poultry) abattoirs throughout the year.

Two brand new slaughter facilities were registered in ZF Mgcawu (Desert Beef abattoir) and Frances Baard (Muttlam abattoir) respectively. The unit deems this in a very positive light given the socioeconomic challenges of the province.

4.4.2.2.1 Slaughter Statistics

124

De Aar Kimberley Calvinia Kuruman Upington Springbok Mothibistad Total2014/15 40 87 0 59 246 42 0 4742015/16 92 0 0 85 165 6 91 4392016/17 152 123 16 68 333 11 12 715

0

100

200

300

400

500

600

700

800

BSE samples 2014 - 2016


Due to the severe drought the number of sheep slaughtered increased a lot towards the end of 2016. It will be interesting to see what this does in the new-year. The graph clearly shows that the slaughter figures for other species including poultry are not picking up. The reasons for such a decline are mainly due to the economics of this commodity in relation to global markets. 7.1.2.2.2 Bovine Spongy Encephalopathy (BSE) Sampling

715 brain samples were collected from cattle at various abattoirs in the province by Veterinary Public Health officials.

7.1.2.2.3 Illegal Slaughtering

010000002000000300000040000005000000600000070000008000000

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Cattle Goats Pigs Poultry Sheep Venison Ostriches

Due to the severe drought the number of sheep slaughtered increased a lot towards the end of 2016. It will be interesting to see what this does in the new-year.

The graph clearly shows that the slaughter figures for other species including poultry are not picking up. The reasons for such a decline are mainly due to the economics of this commodity in relation to global markets.



4.4.2.2.2 Bovine Spongy Encephalopathy (BSE) Sampling

124

De Aar Kimberley Calvinia Kuruman Upington Springbok Mothibistad Total2014/15 40 87 0 59 246 42 0 4742015/16 92 0 0 85 165 6 91 4392016/17 152 123 16 68 333 11 12 715

0

100

200

300

400

500

600

700

800

BSE samples 2014 - 2016


Due to the severe drought the number of sheep slaughtered increased a lot towards the end of 2016. It will be interesting to see what this does in the new-year. The graph clearly shows that the slaughter figures for other species including poultry are not picking up. The reasons for such a decline are mainly due to the economics of this commodity in relation to global markets. 7.1.2.2.2 Bovine Spongy Encephalopathy (BSE) Sampling



010000002000000300000040000005000000600000070000008000000

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Cattle Goats Pigs Poultry Sheep Venison Ostriches



Illegal slaughtering of donkeys has become a booming business given the high demand of the gelatin from donkey skins by pharmaceutical companies in China. Two high profile incidents of illegal donkey slaughtering including an organized syndicate were halted in the province by the law enforcement units.

Officials from Kuruman State Vet office, together with the NSPCA and SAPS discovered a site on a farm in Olifantshoek where more than 100 donkeys had been illegally slaughtered. Two individuals were arrested and have been charged in terms of the Animals Protection Act and the Meat Safety Act”

Veterinary Public Health unit in the Namakwa region hosted a successful illegal slaughtering seminar with all roles players with the aim of stream lining roles and responsibilities envisaged by the Meat Safety Act and different applicable national legislations. However the challenge remains to be the penalties imposed by the legislation.

4.4.2.3 Hygiene Assessment Score

A total of 84 Hygiene Assessment System Audits were done throughout the financial year ending 31 March 2017. The compliance level with regard to Meat safety Act 40 of 2000 is sitting at 79% with 15% attributed to issues relating to carcass marking and poor meat inspection incisions.

Figure 2: Workshop on illegal slaughtering in Namakwa



4.4.2.3.1 Residue and Microbiological sampling

The unit remains committed to the commitment made by the Department of Agriculture Forestry and Fisheries to our international trade partners through the implementation of the National Residue Monitoring Programme.

A total of 87 residue samples were collected from the 7 participating abattoirs within the province.

4.4.2.3.2 Instructions

A total of 4 instructions were issued to 4 abattoir for failing to abide by the law related to the handling and disposal of condemned material as envisaged in the Red Meat Regulation.

4.4.2.3.3 Independent Meat Inspection

The long standing issue of Independent Meat Inspection (IMI) in South Africa is at the advanced stage.

The Meat Inspection Scheme was signed on the 30 Nov 2016 by the Minister paving the way for the implementation of the independent meat inspection. The Meat Inspection Scheme ensures that the meat inspection service provider has no interest in the abattoir other than the rendering of a meat inspection service.

4.4.2.4 Export Control

Despite a difficult year, the export unit managed to ensure that our clients were serviced when required and assistance provided whenever clients explored new markets.

The onus is now on the farmers to ensure that their production systems are of such a level that they can supply the abattoir for the huge demand that is expected to follow.

During this period, two taxidermies and two dip and pack facilities were inspected and approved for the annual re-registration. African San Taxidermy remains the major player in processing and export of game trophies.

4.4.2.4.1 Certification

126

The Meat Inspection Scheme was signed on the 30 Nov 2016 by the Minister paving the way for the implementation of the independent meat inspection. The Meat Inspection Scheme ensures that the meat inspection service provider has no interest in the abattoir other than the rendering of a meat inspection service. 7.1.2.4 Export Control Despite a difficult year, the export unit managed to ensure that our clients were serviced when required and assistance provided whenever clients explored new markets. The onus is now on the farmers to ensure that their production systems are of such a level that they can supply the abattoir for the huge demand that is expected to follow. During this period, two taxidermies and two dip and pack facilities were inspected and approved for the annual re-registration. African San Taxidermy remains the major player in processing and export of game trophies. 7.1.2.4.1 Certification

There number of health attestations can be seen picking up in 2016/17 compared to 2015/16. Beef exports are mainly being done through Beefmaster abattoir with export certifications on a daily basis to different destinations including Egypt, Dubai, Hong Kong, Kuwait, Qatar and Mauritius.

7.1.2.4.2 Live Animal Exports

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

Total Health Attestation 1243 1306 1160 1280 1288 1180 804 1091

0200400600800

100012001400

Certification 2009 - 2017

There number of health attestations can be seen picking up in 2016/17 compared to 2015/16. Beef exports are mainly being done through Beefmaster abattoir with export certifications on a daily basis to different destinations including Egypt, Dubai, Hong Kong, Kuwait, Qatar and Mauritius.



4.4.2.4.2 Live Animal Exports

127

The implementation of the BLNS SOP (Botswana, Lesotho, Namibia and Swaziland Standard Operating Procedures) has resulted in huge number of live animals imports. The protocol allows for imports of animals from these neighbouring countries almost weekly and veterinary officials have to be present during offloading to break the seal and do physical count. Per consignment, the cattle are usually about 75 and the sheep about 700. This in itself is a full time job resulting in other regulatory activities being compromised. Cattle and goat exports are mainly focused on stud breeds mainly to Botswana although we had a recent export of Boer goats to Uganda. Horses are mainly destined for Namibia and Botswana. There has been an increase in exports of wildlife (sable and roan antelope) to Namibia.

7.1.2.4.3 Trophies

The Namibian market has become lucrative for overseas trophy hunters. Hunters prefers to hunt in Namibia than in South Africa. 7.1.2.4.4 Feed and Lucerne exports

020000400006000080000

100000120000140000

Bovine Ovine Caprine

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17Trophies Units 2208 3799 5038 4737 4884 5489 5987 3412

01000200030004000500060007000 Trophies Units 2009 - 2016

The implementation of the BLNS SOP (Botswana, Lesotho, Namibia and Swaziland Standard Operating Procedures) has resulted in huge number of live animals imports. The protocol allows for imports of animals from these neighbouring countries almost weekly and veterinary officials have to be present during offloading to break the seal and do physical count. Per consignment, the cattle are usually about 75 and the sheep about 700.

This in itself is a full time job resulting in other regulatory activities being compromised. Cattle and goat exports are mainly focused on stud breeds mainly to Botswana although we had a recent export of Boer goats to Uganda. Horses are mainly destined for Namibia and Botswana. There has been an increase in exports of wildlife (sable and roan antelope) to Namibia.

4.4.2.4.3 Trophies

127

The implementation of the BLNS SOP (Botswana, Lesotho, Namibia and Swaziland Standard Operating Procedures) has resulted in huge number of live animals imports. The protocol allows for imports of animals from these neighbouring countries almost weekly and veterinary officials have to be present during offloading to break the seal and do physical count. Per consignment, the cattle are usually about 75 and the sheep about 700. This in itself is a full time job resulting in other regulatory activities being compromised. Cattle and goat exports are mainly focused on stud breeds mainly to Botswana although we had a recent export of Boer goats to Uganda. Horses are mainly destined for Namibia and Botswana. There has been an increase in exports of wildlife (sable and roan antelope) to Namibia.

7.1.2.4.3 Trophies

The Namibian market has become lucrative for overseas trophy hunters. Hunters prefers to hunt in Namibia than in South Africa. 7.1.2.4.4 Feed and Lucerne exports

020000400006000080000

100000120000140000

Bovine Ovine Caprine

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17Trophies Units 2208 3799 5038 4737 4884 5489 5987 3412

01000200030004000500060007000 Trophies Units 2009 - 2016

The Namibian market has become lucrative for overseas trophy hunters. Hunters prefers to hunt in Namibia than in South Africa.



4.4.2.4.4 Feed and Lucerne exports

128

Feed and Lucerne exports are expected to increase in the following year. Already cattle feed in excess of 2 000 tons has been exported from Luberne Voere based in Hartswater to Mauritius in the last quarter of 2016. The Lucerne is mainly destined for Zambia and Mauritius with the recent inclusion of the Reunion Islands. 7.1.2.4.5 Export of milk and milk products

The import permit is granted to Suide Koelkamers of Namibia for the imports of milk and milk products produced in Clover S.A. and send to the mentioned company in Keetmanshoop in Namibia.

7.1.2.4.6 Beef and Lamb exports

0

5000000

10000000

15000000

20000000

25000000

30000000

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Feed and Lucerne exports 2009 - 2016 (Kg)

Feed Kilograms Lucerne Kilograms

0100002000030000400005000060000700008000090000

Export of milk and milk products

Milk Butter Yogurt Juice

Feed and Lucerne exports are expected to increase in the following year. Already cattle feed in excess of 2 000 tons has been exported from Luberne Voere based in Hartswater to Mauritius in the last quarter of 2016. The Lucerne is mainly destined for Zambia and Mauritius with the recent inclusion of the Reunion Islands.

4.4.2.4.5 Export of milk and milk products

128

Feed and Lucerne exports are expected to increase in the following year. Already cattle feed in excess of 2 000 tons has been exported from Luberne Voere based in Hartswater to Mauritius in the last quarter of 2016. The Lucerne is mainly destined for Zambia and Mauritius with the recent inclusion of the Reunion Islands. 7.1.2.4.5 Export of milk and milk products



0

5000000

10000000

15000000

20000000

25000000

30000000

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Feed and Lucerne exports 2009 - 2016 (Kg)

Feed Kilograms Lucerne Kilograms

0100002000030000400005000060000700008000090000

Export of milk and milk products

Milk Butter Yogurt Juice





129

Figure 3: Dr Kegakilwe presenting to the China delegation

The increase in the exporting of meat particularly from Beefmaster is very encouraging. Beefmaster abattoir is amongst the three abattoirs in the country that got selected after a visit from officials from China to export frozen beef to the People’s Republic of China. This is a massive achievement for the red meat industry as well as for the Province. The European Union (EU) delegation visited the country in the February 2017 to evaluate the veterinary control measures that are in place in EU approved facilities. Moreson’s abattoir in De Aar registration was suspended by Department of Agriculture Forestry and Fisheries before the European Union’s visit due to non-conformances. The Moreson abattoir was also audited by the EU and even though the abattoir itself managed to impress the delegation, the absence of a permanent official veterinarian at the plant is currently a major stumbling block in the abattoir’s way to be registered for EU exports of venison and ostrich meat. Resuming exports to the EU will play an important role in curbing job losses at this abattoir which currently employs 35 permanent workers.

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

Ovine Meat 50 5400 0 0 0 2771 32796 16000Bovine Meat 190674 194328 59763 109967 313420 436992 1600450 2317000

0

500000

1000000

1500000

2000000

2500000

Beef and Lamb Exports 2009 - 2016 (Kg)

The increase in the exporting of meat particularly from Beefmaster is very encouraging. Beefmaster abattoir is amongst the three abattoirs in the country that got selected after a visit from officials from China to export frozen beef to the People’s Republic of China. This is a massive achievement for the red meat industry as well as for the Province.

The European Union (EU) delegation visited the country in the February 2017 to evaluate the veterinary control measures that are in place in EU approved facilities. Moreson’s abattoir in De Aar registration was suspended by Department of Agriculture Forestry and Fisheries before the European Union’s visit due to non-conformances.

The Moreson abattoir was also audited by the EU and even though the abattoir itself managed to impress the delegation, the absence of a permanent official veterinarian at the plant is currently a major stumbling block in the abattoir’s way to be registered for EU exports of venison and ostrich meat. Resuming exports to the EU will play an important role in curbing job losses at this abattoir which currently employs 35 permanent workers.

4.4.3 Veterinary Laboratory Services and Epidemiology

The Northern Cape Provincial Veterinary Laboratory has scored a number of successes in its quest to compete with the best laboratories in the world. A state of the art carcass incinerator has been commissioned at the laboratory with the training of the end users. The facility has been advertised to stakeholders through the departmental website and has been fully operational since January 2017 after the issuance of a provisional air emission license. The license was only issued after a rigorous Environmental Impact Assessment which expires in June 2017. Plans are at advanced stage to comply with the requirements for a full license.

Figure 3: Dr Kegakilwe presenting to the China delegation



The Northern Cape Provincial Veterinary Laboratory has been on the path to establish itself as a world class veterinary laboratory since 2014 and had targeted 2019 for SANAS (South African National Accreditation System) accreditation. Hard work and dedication of laboratory personnel brought forward the accreditation dates. The provincial Veterinary Laboratory applied for initial assessment for ISO17025 accreditation by the South African National Accreditation (SANAS) after a successful document review.

The Laboratory was finally assessed on the 14th and 15th March 2017 and recommended for accreditation of 5 diagnostic methods it had applied for on condition that it clears the 10 non-conformances raised before the end of June 2017.

Once the non-conformances are cleared the Northern Cape Provincial Veterinary Laboratory will be the first laboratory to be accredited for sheep scab in the country.

The laboratory has shown its competitiveness through its performance in Proficiency testing schemes where it has proven to be one of the best performing laboratories among the 15 participants.

The Provincial Veterinary laboratory has overshot its targets for the year under review by over 6000 partly due its national performing standard and recent recommendation for SANAS accreditation.

4.4.4 Training & Extension

Staff development is important because it ensures that personnel continue to be competent in the profession. It is an ongoing process and continues throughout a professional’s career. Each year we hold a Scientific Meeting in Upington and were invite experts in the field of veterinary science to give a presentation.

This year we invited the president of the South African Veterinary Council, Dr Clive Marwick, and National Director: Animal Health, Acting Director: VPH, Dr Molefe and Mr Nel. The pinnacle of the presentation was around disease outbreak investigation.

Employees who served government for longer than 10 years were presented with certificates. Community Service vets also received certificates for having completed the programme successfully.

Figure 13: Molecular Laboratory Section Figure 14: Serology laboratory



Dr Lea Shuda and Franciska Einkamerer attended a Climate change workshop at the JTG District Municipality. Several role players took part in this brainstorming session.

Dr Petty from DAFF gave training on PAPA (Performing Animal Performance Amendment Bill. Once the act is enacted, it removes the responsibility from the magistrate to issue permits for performing animal performance and places it on the state veterinarians.

Drs Maja, Molefe and Marwick listening to the presentations

Dr Gayakaya presenting on Foot & Mouth Disease testing



4.5 Programme 5: Research and Technology Development Services

Purpose: The purpose of the programme is to render expert and needs based research, development and technology transfer services impacting on development objectives.

Sub-Programmes:• Research• Technology Transfer Services• Infrastructure Support Services

Strategic Objectives:• To improve the agricultural production through conducting, facilitating and coordinating 13 medium

to long term research and technology development projects;• To disseminate information on research and technology developed to clients, peers and scientific

community;• To provide and maintain 7 infrastructure facilities for the line function to perform their research and

other functions.



Programme: 5 Research and Technology Development Services






To improve the agricultural production through conducting, facilitating and co-ordinating 13 medium to long term research and technology development projects

13 13 13 0

To disseminate information on research and technology developed to clients, peers and scientific community

- 5 8 3 Publications in scientific as well as popular media is not within the control of the department, although requests are made for when documents should be published the final decision is that of the editors of the specific media.

To provide and maintain 7 infrastructure facilities for the line function to perform their research and other functions

6 6 6 0




Sub-programme: 5.1 Research








5.1.1 Number of research and technology development projects implemented to improve agricultural production

13 13 13 13 13 0

5.1.2 Number of scientific investigations conducted

- - 8 8 8 0


None

Sub-programme: 5.2 Technology Transfer Services








5.2.1 Number of research presentations made nationally or internationally

6 5 9 6 7 1 More than one presentation was made at the annual grassland society conference this year.

5.2.2 Number of scientific papers published nationally or internationally

2 2 2 2 4 2 Two papers were published in the first quarter. Part of the master’s research of the candidate scientist was published and the department as her new employer was acknowledged. The other publication was as a co-author.

5.2.3 Number of presentations made at technology transfer events

7 10 12 8 11 3 More requests were received from districts to present research information than had been planned for. The programme also held a successful farmer’s day on milk goat production.

5.2.4 Number of articles in popular media

3 4 3 3 3 0

5.2.5 Number of spatial datasets and maps created

12 12 16 16 16 0



Sub-programme: 5.2 Technology Transfer Services








5.2.6 Number of development projects/programmes supported

11 12 11 10 10 0

5.2.7 Number of reports on support provided to KKC

- - - 4 4 0


None

Sub-programme: 5.3 Infrastructure Support Services

Performance indicator Actual Achieve-ment 2013/2014







5.3.1 Number of research infrastructure managed

- - 6 6 6 0


None


None



Pr 5: Research & Technology Development Services

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Research 26 256 26 256 - 23 842 23 842 -

Technology Transfer Services

18 18 - - - -

Infrastructure Support Services

20 382 20 382 - 19 466 19 223 243

Total 46 656 46 656 - 43 308 43 065 243




4.5.1 Research

4.5.1.1 Key Deliverables:

The development of veldt condition and degradation indices using Unmanned Aerial Vehicle (UAV) technologies.

One of the primary objectives of rangeland monitoring is to determine whether grazing management strategies meet the goals for sustainable resource utilization and to prevent rangeland degradation from taking place. Monitoring, however is an ongoing process needed to determine whether progress is being made towards the achievement of objectives on given variables such as prolonged droughts, veld fires, grazing pressures, land-use and climate change. Ground surveys can be time consuming, labour intensive, logistically challenging in remote areas and, therefore, very expensive. Depending on the scale, the objectivity and representativeness of ground based assessments can at times be questioned since surveys cannot be conducted at the frequency required for proper analysis and monitoring of trends due to high cost implications and inaccessibility. Therefore, a significant weakness in ecological research and rangeland monitoring in southern Africa’s rangelands remains its inability to easily track changes in vegetation structure and composition resulting from management strategies, land-use and climate change. This can further be attributed to the lack of access to high resolution geospatial data sets. Ground resolutions and sensor capabilities of satellites have improved immensely within recent years. While remote sensing technologies are evolving at a rapid rate, most researchers currently rely on satellite based remote sensing for mapping and monitoring. Even though certain low resolution satellite images are freely available (e.g. Landsat and MODIS), other sub-meter resolution images (such as IKONOS, Worldview and Quickbird) can be extremely costly and may not always offer timely high resolution images to fulfil the objectives required. Remote sensing images from satellites are also often obscured by cloud cover, preventing any real-time monitoring.

The drought event of 2015/16 across large parts of South Africa has emphasized the importance of sustainable livestock production in a variable climate characterised by extreme events. A lack of

rainfall and excessive heat characterised much of the early-to-mid summer (2015/16) period over the Northern Cape. Rain towards the latter part of the summer rainfall season however did result in an improvement in the grazing conditions in some areas. We consider the varied responses over the Savannah biome over the northern to central parts of the Northern Cape, focussing on vegetation response to rainfall events after the extremely dry period and how it relates to indications of land degradation. A time series spanning the period 2000 – 2016 of coarse-resolution vegetation monitoring data from the MODIS instrument is used towards identifying potentially degraded areas within the background of climate variability, based on anomalous vegetation trends within areas of relatively homogeneous land cover. The “Spearman’s Rank Correlation” map shows areas where significant trends have been noted over the past 16 years - in vegetation activity. These indicators of gradual change, together with tree cover products, will be used to inform anomalies depicted in the operational drought products - such as the PASG (percentage average seasonal greenness).



With the introduction of affordable remotely piloted aircrafts (RPA’s), also known as unmanned aerial vehicles (UAV’s), one can now safely acquire timely hyper-resolution aerial images at low altitudes. Currently the National Aeronautics and Space Administration as well as the National Oceanic and Atmospheric Administration have Unmanned Aircraft Systems Programs. RPA’s provide low operational complexity and costs, compared to manned aerial photography. Remote sensing sensors placed in RPA’s furthermore provides the capacity to combine high spatial resolution and quick turnaround times in order to meet critical requirements of spatial, spectral and temporal resolution at budget cost.

RPA’s have the potential to bridge the gap between ground-based surveys and remote sensing data acquired from satellites or manned aircrafts. Ground surveys provide only the information required to develop high resolution maps and allow monitoring of vegetation changes in small areas. Remote sensing data acquired from satellites are sufficient to produce maps and monitor vegetation activity over areas of a much larger extent; however, limitations arise in terms of lower spatial resolution and operational flexibility. It becomes expensive to monitor features at a finer-scale from satellite derived remote sensing images on a routinely basis. However, with fully autonomous GPS-guided RPA’s, mapping and monitoring changes on a routinely basis at an intermediate spatial scale is possible. The RPA is capable of producing high quality ortho-rectified and geo-referenced images (Figure 1) which can be used for mapping purposes as well as a tool to verify course scale satellite data in order to conduct ground truthing on vegetation indexes calculated from near-infrared images, such as; the Normalized Difference Vegetation Index (NDVI) and Enhanced Vegetation Index (EVI) (Figure 2).

a) b)

Figure 1: High quality geo-referenced image captured by a RPA (a) with a clear distinction possible between individual grass tufts compared to (b) a lower quality satellite image with only larger woody plants barely visible as darker patches.

Satellite derived remote sensing has already been used in various previous studies to depict land-cover change, the impact of fires and grazing systems on plant biomass, biodiversity science and for assessing drought events and the relationship that exists between biophysical climate variables and vegetation indices. Unmanned Aerial Vehicles’, therefore offer a range of new opportunities in high resolution applications in rangeland research.

a) b)

Figure 2: a) Remotely sensed image of a drainage line running down the middle of the image, b) Enhanced Vegetation Index calculated from Near-infrared image captured by a RPA indicating, in white, photosynthetic activity of the vegetation layer in and along the drainage lines.



Figure 3: Mosaic image indicating individual woody shrubs and trees (i.e. white dots) that can be exploited to identify and monitor shrub encroached areas as seen on the bottom left of the image.

These technologies are being used in a long term trial established on the Carnarvon Research Station where vegetation change under the four different treatments, have been monitored for over 28 years using descending point line surveys. The most recent results using conventional vegetation survey techniques could find no significant differences between stocking density treatments with regard to plant height, cover and, ecological- and grazing index scores. In order to confirm the accuracy of these outcomes, remotely sensed, high-resolution spectral images of this long term trial will be analysed. By determining the spectral signatures of the plants, the density cover of each species can accurately be calculated across the entire trial area. The impact of climate on vegetation conditions can be monitored on a routinely basis.

Preliminary results from the data obtained by the RPA highlight, not only, the lack of previously perceived uniformity in vegetation, but also the implications of site selection for surveys. While the overall outcomes suggest that the three camp system provides an adequate rest period for vegetation under these stocking rates, high resolution remote sensed data do provide new and interesting perspectives regarding species distribution and the influence of soil properties. This has been reported at two conferences and a scientific paper has been forwarded for publication in the African Rangeland Journal.

RPA’s together with the appropriate multispectral sensors are emerging as essential monitoring and quantitative research tools that have the ability to enhance objective measurement of rangeland dynamics.

The development of a comprehensive project footprint linked to the Northern Cape Agricultural information system (NCAIS).

The development of the Northern Cape Agricultural Information System (NCAIS) is a tool to track and monitor the extent of the department’s intervention on development projects. The Department of Agriculture, Land Reform and Rural Development in the Northern Cape Province decided to have a location based, electronic filing system that will employ both Microsoft programs and ArcGIS to store and retrieve information. NCAIS has been developed to look at the footprint of the Department in the Province. The main focus was to establish how much has already been spent, and how the funds were spent. Further, also linking the amount to a land parcel and sum it up to Local- or District Municipality level. In order to determine where the department has been more visible and where there has been a lack of support. This filing system will help to indicate the distribution of beneficiaries by gender, age group and location. The current aim is to collect historical data and convert it from the old hardcopy documents to a digital format. This system will enhance the reporting of the department at different management levels.



Technology development and transfer in the field of sustainable crossbreeding with beef cattle in semi-arid areas of South Africa

The crossbreeding project with specialized sire lines on Landrace and tropical adapted beef cattle breeds as a collaborative project between the ARC, Northern Cape Department of Agriculture, Land Reform and Rural Development and the University of the Free State continued with the dam lines being the Afrikaner, Bonsmara and Nguni and the sire lines the Afrikaner, Bonsmara, Nguni, Angus and Simmentaler. This study will supply baseline information that can be used; 1) to evaluate how effective the current crossbreeding systems in South Africa are and 2) information on the possible advantages of structured crossbreeding.

A scientific paper by the collaborative team: ‘A critical analyses of cow-efficiency in extensive beef production systems’ (Appl. Anim. Husbandry & Rural Dev. 2016, Vol 9 pp 11-20) eludes to selection criteria that could possibly increase the weaning weight of calves in relation to a cow LSU unit in extensive beef production systems. Another alternative could be to use the relationship between weight of calf produced and the estimated feed inputs (by using LSU) required to sustain the cow and allowing her to provide for the calf. It is also reported and illustrated in Table 1 that cow efficiency can be increased by up to 46% without additional herd costs to the farmer through proper designed crossbreeding systems, thereby promoting climate smart beef production systems and reducing the carbon footprint.

Table 1 The estimated cow efficiency for the different genotypes as percentage deviation from the Afrikaner genotype

Dam breed

Sire Breed

Afrikaner Brahman Charolais Hereford Simmentaler (S) Average

(A) (B) (C) (H) (%)

A 11.8% 15.5% 5.5% 13.6% 11.6%

B 4.5%

C -16.3%

H 8.2%

S 31.8%

BA 1.8% 5.5% 20.9% 14.5% 20.9% 12.7%

CA 19.1% 34.5% 30% 28.1% 32.7% 28.9%

HA 28.1% 40.9% 45.5% 33.6% 46.4% 38.9%

SA 16.4% 25.5% 30% 28.8% 20.9% 22.9%

A three phase study on bulls from Vaalharts Research Station with the aim to identify possible genes that can lead to a difference in the growth of Nguni (and other indigenous breeds) and Bonsmara fed with different rations. The M.Sc. study (by Dina van der Linde from ARC) will verify the assumption that the Nguni performs better on a lower energy ration in a first research project where gene expression will be used to study growth related genes of animals in a feedlot system.

Of the presentations and popular publications which emanated from the crossbreeding research, the most significant was: ‘The Afrikaner in crossbreeding systems’ and was presented at the national symposium of the ARC, Pretoria (25 August 2016) and published in ‘The Afrikaner breed of cattle: South Africa’s heritage for food security’ (ISBN978-0-621-44740-8).



4.5.1.2 Aquaculture and inland fisheries

Aquaculture is the fastest growing animal production sector in the world and the NC has the resources that can be exploited for both fresh and salt water aquaculture and fisheries development. This includes the nutrient rich waters of the west coast where the Department is supporting small scale fishermen and a number of commercial aquaculture enterprises are contributing to the development of the area. The NC also has access to two of the biggest rivers in South Africa linked to a number of dams. These resources are currently utilised by subsistence and recreational fishermen, but have the potential to support much larger fishery and aquaculture development.

The development of management plans for small scale and kraal fisheries at Vanderkloof Dam have gone through a rigorous consultation process and both documents are close to finalisation. Implementation will start in the new financial year. The trout cage culture in Vanderkloof has been registered under Operation Phakisa and a pilot study will start in the 2017/18 financial year. Furthermore, the Department facilitated the establishment of a NC Mariculture Working Group which meets quarterly. The Department is also represented on the Provincial Coastal Committee and actively participates in activities in this regard. Important legislation that will assist the development of these industries is in various stages of finalisation and this will include an Aquaculture Bill and an Inland Fishery Policy.

The Strategic Environmental Assessment for Aquaculture Development in South Africa (SEA) has started and the purpose of the SEA is to promote and support the growth of the aquaculture industry in South Africa through:

(i) identifying suitable areas where environmentally sustainable aquaculture development can be prioritised and incentivised; and

(ii) providing a streamlined and integrated management and regulatory framework to reduce compliance complexities and improve decision-making processes

This process is currently in its 2nd phase or screening phase which includes a national scale review and mapping of aquaculture facilities, environmental attributes, specific siting criteria, alien fish invasion, biodiversity risks, key issues/impacts and licensing/permits.

The Department has agreed to develop an aquaculture plan for Vaalharts Irrigation Scheme that will address the:• establishment of an aquaculture research facility at Vaalharts Research Station;• completion of a comprehensive desktop study to determine the potential of aquaculture on

Vaalharts Irrigation Scheme;• monitoring of water parameters at selected sights on the irrigation scheme (expand to other

localities in the Province);• determination of irrigation dam capacities, water fluctuations and flushing rates;• evaluation of suitable species in terms of growth rates, mortalities and other factors; and• examination of critical success factors for example access to fingerlings, feed and markets

4.5.1.3 Monitoring of fruit-fly infestation in Lower Orange area

The purpose of the fruit fly project is to investigate the occurrence and population dynamics of fruit flies on fruit crops such as grapes (table, dry, wine, citrus etc.) in the Lower Orange River area, as well as to determine possible hot spots and overwintering/alternative hosts for the fruit flies. The study area consists of eight locations from Upington to Blouputs and at each location eight variables are being monitored. Variables include table grape vineyards, wine/dry grape vineyards, raisin floor, cellars/packhorse, riverine vegetation, outcrops away from the river, home vegetable/fruit tree gardens and orchards. The collected fly specimens were counted taxonomically identified. The numbers for the Mediterranean fruit fly (Ceratitis capitata) increased as the season progress towards March 2015. It is evident from the results that there is movement of especially vinegar flies from the table grape orchard to pack houses and from pack houses to wine grape orchards as the season progressed and fruit ripened accordingly. Fruit fly populations were monitored over two years in order to track the population density and migration. In the first phase, BioLure® and methyl eugenol (ME) were used as lures in yellow bucket traps. BioLure® was used to monitor fruit fly diversity and ME was used to lure Bactrocera invadens males. After this phase Ceratitis capitata was identified as a major threat, no B. invadens individuals were collected. During phase two sex specific lures (Capilure and Questlure) targeting C. capitata were used in census traps, while we continued using methyl eugenol in bucket traps in case of B. invadens emergence.



142

8.1.1.2 Fodder bank This directorate implemented a fodder bank concept with the aim to provide a

support service to the Disaster Management Unit through the production and

storage of fodder crops such as lucerne and yellow maize on research stations.

While still in the planning and development phase (development of 40ha at

Vaalharts Research Station, 60ha at Rietrivier Research Station and 20ha at

Eiland Research Station) the fodder bank was already able to provide assistance

to farmers during the 2016/17 financial year with lucerne that was established

during the spring of 2016.

142

8.1.1.2 Fodder bank This directorate implemented a fodder bank concept with the aim to provide a

support service to the Disaster Management Unit through the production and

storage of fodder crops such as lucerne and yellow maize on research stations.

While still in the planning and development phase (development of 40ha at

Vaalharts Research Station, 60ha at Rietrivier Research Station and 20ha at

Eiland Research Station) the fodder bank was already able to provide assistance

to farmers during the 2016/17 financial year with lucerne that was established

during the spring of 2016.

4.5.1.4 Fodder bank

This directorate initiated a fodder bank concept with the aim to provide a support service to the Disaster Management Unit through the production and storage of fodder crops such as lucerne and yellow maize on research stations. While still in the planning and development phase (development of 40ha at Vaalharts Research Station, 60ha at Rietrivier Research Station and 20ha at Eiland Research Station) the fodder bank was already able to provide assistance to farmers during the 2016/17 financial year with lucerne that was established during the spring of 2016. As part of the Drought Relief Initiative of the Department during November 2016, approximately 18 tons of fodder bank lucerne was donated to farmers affected by the drought in the Namakwa District while 32 tonnes of maize and 10 tonnes of lucerne were donated to farmers in JTG. Another 3 tonnes of maize and 1 ton of lucerne were donated to farmers in Ganspan as part of drought mitigation.

Farms in the Roggeveld region of the Northern Cape was severely affected by veldt fires over the New Year period. In support of the affected farmers, 22 tonnes of lucerne was donated from the fodder bank on the 3rd of January 2017.



By the end of March 2017, another 64 tonnes of lucerne were donated to farmers in the drought stricken vicinity of Calvinia.

The fodder bank is expected to be in full production by September 2017.

4.5.2 Technology Transfer Services

A very successful milk goat farmer’s day was held on May 2016 where farmer who attended got to share information and ideas with experts in the milk goat industry. Presentations included topics such as the basic management principles and its effect on milk production, value adding through measuring (animal quality etc), management of animals during times of drought and then more technical aspects such as animal handling, handling of vaccines etc as well as the maintenance of equipment and an introduction to new technologies.

Farmers attending the milk goat farmer’s day.

Right: A representative from Delaval, discussing the maintenance and management of the milking equipment.

Fifteen youth from the Maths and Science Leadership Academy attended a career information workshop and job shadowing in June.

In June, the programme hosted the grade 11 students from the Maths and Science Leadership Academy for a career awareness workshop and job shadowing. Fifteen students attended where they were exposed to different careers offered in Agriculture, such as engineering, environmental risk management, animal production and animal health technician. They then had the opportunity to be exposed to the actual activities on a research farm as well as the veterinary laboratory.



The above is part of the report received from the youth on their experience at the Department.

4.5.3 Infrastructure Support Services

The Department currently has six research stations actively supporting research and the research animals. Except for Carnarvon and Rietrivier Research Stations, theft of both research material and equipment at the other four research stations places a heavy burden on what the Department can deliver in terms of research results.



4.6 Programme 6: Agricultural Economics Services

Purpose: The purpose of the programme is to provide timely and relevant agricultural economic services to the sector in support of sustainable agricultural and agri-business development to increase economic growth.

Sub- Programmes:• Agri-business Support and Development• Macroeconomics Support

Strategic Objectives:• To provide Agri-Businesses support through entrepreneurial development, marketing services,

value adding, production and resource economics.• To provide macroeconomic and statistical information on the performance of the agricultural

sector in order to inform planning and decision making


Strategic objectives:

Programme: 6 Agricultural Economics Services






To provide Agri-Businesses support services through entrepreneurial development, marketing services, value adding, production and resource economics.

52 32 32 0

To provide macroeconomic and statistical information on the performance of the agricultural sector in order to inform planning and decision making

1 14 14 0


Sub-programme: 6.1 Agri-business Support and Development








6.1.1 Number of agri-Businesses supported with agricultural economic services to access markets

7 5 5 10 6 -4 Projects unable to meet market requirements due to quantity and quality of the produce as well as lack of their own transports to take produce to the market place. These factors as a result are causing them not to access sustainable markets











6.1.2 Number of clients who have benefitted from agricultural economic advice provided

509 458 878 700 835 135 An increased demand for economic advice was requested by farmers and extension officials.

6.1.3 Number of agricultural economic studies conducted

24 25 11 15 15

0

6.1.4 Number of information sessions on marketing

- 9 18 12 15 3 Additional requests were made for information sessions.

6.1.5 Number of MAFISA screening committee meetings held to process applications

- 8 5 10 4 -6 During the 2nd and 3rd Quarter of the financial year, new MAFISA applications were halted by National Emergent Red Meat Producers Organisation (NERPO) citing a reason that most farmers are failing to meet their financial obligations. This resulted in no screening committee meetings taking place.

6.1.6 Number of export opportunities created

0 3 5 2 5 3 There was an agreement between the local Department of Economic Development and Tourism and Agriculture, Land Reform and Rural Development to bring three projects to participate at the South African International Trade Exhibition (SAITEX) which resulted in an increase in the number of opportunities created.

6.1.7 Number of new co-operatives established

14 10 8 11 10 -1 one cooperative could not be registered due to incorrect /incomplete applications forms











6.1.8 Number of workshops conducted to promote affiliation to commodity organisations by smallholder farmers

- 5 12 10 13 3 Additional requests were made to conduct workshops on commodity affiliations

6.1.9 Number of smallholder farmers supported to access markets

- 23 0 12 14 2 More small holder farmers were assisted to sell their Lucerne in the 3rd quarter resulting in over performance of planned targets

6.1.10 Number of co-operatives supported

- - - 15 16 1 The over performance was due to the increase in the need for business plan training in the Province.


One of the endeavours is to ensure that we assist agri-business entities with the necessary support to access market. To this end, we will continue to work closely with Farmer Support and Development Programme of the Department to develop production strategy that will address the challenge of quantity and quality of farmers produce such that they appeal to potential buyers. Another strategy is to ensure that we continue to assist farmers to get compliance certificates in order for their produce to be market ready and compliant

In order to ensure that stakeholders benefit from agricultural economic studies, outreach programmes will be intensified with a view to stimulate interest to aspirant farmers in the province across all vulnerable groups of the society such as the youth, females as well as people living with disabilities

During the financial year under review, the plans made for assisting farmers to access MAFISA could not be realised. During the 2nd and 3rd Quarter of the financial year, all new MAFISA applications were halted by National Emergent Red Meat Producers Organisation (NERPO) citing a reason that most farmers are failing to meet their financial obligations. This resulted in no screening committee meetings taking place. The Department will make proposals to Department of Agriculture, Forestry and Fisheries (DAFF) as part of a general solution to affected provinces with failure by their respective farmers to meet their financial obligations to NERPO. The envisaged solution strategy will look at amongst other ways, the best repayment method that will suit both farmers and NERPO,

In assisting sector beneficiaries with cooperative registrations, the department will strive to ensure that it stays abreast of any new developments of registration processes and requirements in order to ensure maximum beneficiation of beneficiaries.



Sub-programme: 6.2 Macroeconomic Support








6.2.1 Number of agricultural economic information responses provided

5 5 10 8 8 0

6.2.2 Number of economic reports compiled

14 12 12 12 12 0

6.2.3 Number of new enterprise budgets (combuds) developed

6 5 5 4 4 0

6.2.4 Enterprise budgets (combuds) annual prices updated and report generated

1 1 1 1 1 0

6.2.5 Functional statistical economic database available

1 1 1 1 1 0


None


None



Pr 6:Agricultural Economics

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Agric-Business and Development

2 987 2 987 - 3 544 2 861 683

Macroeconomics Support

6 074 6 056 18 5 575 5 277 298

Total 9 061 9 043 18 9 119 8 138 981


4.6.1 Marketing

Rekgarathile BEE Project, ZF Mgcawu District

The project, initially funded by Kolomela Mines in Postmasburg was established and registered in 2009, in the ZF Mgcawu district. It started with six beneficiaries and they have since added an additional six members. The farmers are producing and packaging pure honey. They sell to the Skeyfontein and Postbmasburg local community at R60.00 per 500g bottle. If they sell to businesses, they sell at R35.00 per 500g bottle.The members have had basic training in Bee-keeping and how to run a small business. The department has linked the project to various markets in Postmasburg (Save Rite, Vintage Skiek); Danielskuil (KaapAgri Express, Danielskuil Spar); and Kuruman (Geel Kombuis, Kalahari Supermarket, Kuruman Superspar, Kalahari Bilton and Kuru Kuru Guest house).



Skeyfontein Vegetable Garden

This project was established in 2002 and in 2009 legally registered as an agricultural cooperative and is based in the ZF Mgcawu district. It is comprised of seven female beneficiaries who are producing vegetables in four tunnels including spinach, cabbage, lettuce, tomatoes and green peppers. For the period under review, the project was linked to various markets Postmasburg including African Supermarket, Save Rite, Shoprite and Jimbos.

Emthanjeni Hydroponics

Emthanjeni was linked to Veggie on Line, a marketer of vegetables. An agreement (a Letter Of Intent) was signed between the project and the marketer with specification on quantities and frequencies of delivery

Reetsang Agricultural Cooperative

Retsang Agricultural Cooperative in Barkly West was linked with Pick n Pay in Galeshewe, Kimberley to sell vegetables including cabbage, beetroot and carrots. These transactions took place in the second quarter of the financial year under review.A Letter of Intent to purchase future produce was also signed. In the 3rd quarter, the department was again able to assist the cooperative to sell its produce to Spesbona and the Santos Kitchen. Vegetables were sold to Santos Kitchen while Lucerne was sold to Spesbona. For the 2016/17 financial year, the department was able to link the cooperative to three different markets.

Coboop Cooperative

The cooperative has been struggling to secure formal markets to sell its mangoes and has been selling to informal markets. The department was able to link Cooboop with OK Supermarket in springbok. A Letter of Intent was signed specifying issues such as the quality, distribution and packaging of the mangoes

Rooival Cooperative

The Rooival cooperative was linket to a market in Cape Town through the assistance of Maysen Boerdery CC. The project is currently planting chillies and brinjal in Viooldrift. This market linkage resulted after department approached the Maysen Boerdery CC the as well as the women beneficiaries of Plot 156 with the aim of forming a joint venture that will benefit both parties. Maysen Boerdery consists of two well-known commercial farmers in Vioolsdrift. These farmers specialize in vegetable production for export as well as national markets.

Pella Small-holder farmers

The Pella Small-holder farmers were linked to Pioneer Foods and OK for their table grapes. Even though the produce will only be harvested and available for market in two years’ time, the department will continue to ensure that communication between these parties continue and that each honour the commitments they made to each other.

Small-holder Farmers from Namakwaland

Small-holder farmers from Nama-Khoi, Richtersveld, Khai-Ma and Kamiesberg were assisted by the department to sell their produce to Nam-lam Abattoir, which is a formal market. These farmers have been struggling to access the formal markets of Nam-lam and Nam Meat abattoirs. The department will ensure that the agreements reached by these parties are sustainable and that these small-holder farmers continue to supply to these abattoirs.

Information Sharing Session

A total of fourteen information sharing sessions were held during this financial year. The information that was disseminated in these sessions focused around agricultural marketing, commodity associations, access to finance, cooperatives formation, business plans development and financial management. The information sharing sessions took place in the following areas:



MARKETING INFORMATION SHARING SESSIONS IN 2016/2017

No. PLACE DISTRICT DATE

1 Danielskuil ZF Mcgawu 02 June 2016

2 Kuruman John Taolo Gaetsewe 12 May 2016

3 Olifantshoek ZF Mcgawu 13 May 2016

4 Victoria West Pixley Ka Seme 31 May 2016

5 Delportshoop John Taolo Gaetsewe 28 July 2016

6 Noupoort Pixley Ka Seme 29 September 2016

7 Hartswater Frances Baard 06 October 2016

8 Petrusville Pixley Ka Seme 16 October 2016

9 Brandvlei Namakwa 25 October 2016

10 Calvinia Namakwa 27 October 2016

11 Loxton Pixley Ka seme 15 February 2017

12 Upington ZF Mcgawu 28 February 2017

13 Keimoes ZF Mcgawu 01 March 2017

14 Pniel Frances Baard March 2017

4.6.2 MAFISA

Four MAFISA screening committee meetings were held during this financial year, wherein 34 application forms were screened and recommended to NERPO head office for approval. The total amount of money applied for by these farmers was R2, 035,000.00.

4.6.3 Cooperative establishment and support

Cooperatives established

REGISTERED COOPERATIVES 2016/17

No. NAME LOCATION

1 Skobi Project Primary Cooperative Kimberley, Frances Baard

2 Itireleng Ma Africa Agricultural Cooperative Windsorton, Frances Baard

3 Hopetown Piggery Primary Cooperative Hopetown, Pixely Ka Seme

4 Tshepano Primary Cooperative Batlharos, John Taolo Gaetsewe

5 Bokgoni Cooperative Kimberley, Frances Baard

6 Katemo Agricultural Primary Cooperative Kimberley, Frances Baard

7 Eyabantu Livestock Agricultural Cooperative Petrusville, Pixley Ka Seme

8 Oteng Agricultural Cooperative Kuruman, John Taolo Gaetsewe

9 Mo- Afrika Organic Farming Pampierstad, Frances Baard

10 Marang a Lesedi agricultural primary cooperative Kuruman, John Taolo Gaetsewe

Cooperative Support

Seventeen cooperatives were supported through either Farm Together Training or business plan training conducted by Departmental Economists. The training sessions conducted by the Farm Together took place over two weeks whereby cooperatives were trained on financial management, cooperative governance, team work, conflict management and business plan development. The business plan training conducted by the Department official was over a two day period.



The following cooperatives were supported with training during this financial year:

No COOPERATIVE NAME DISTRICT TYPE OF TRAINING

1 Cholofelo Ntle Agricultural Cooperative Frances Baard Farm Together Training

2 Tshepanang Agricultural Cooperative Frances Baard Farm Together Training

3P-Niel Youth Development Agricultural Cooperative

Frances Baard Farm Together Training

4Chicken project & Trading Agric Cooperative

Frances Baard Farm Together Training

5 Lemoendraai Agricultural Cooperative ZF Mcgawu Business Plan Training

6 Victory Farmers Cooperative ZF Mcgawu Business Plan Training

7 Morning Star Cooperative ZF Mcgawu Business Plan Training

8 Gamagula Agricultural Cooperative ZF Mcgawu Business Plan Training

9 Vertrou Ons Cooperative Pixley Ka Seme Business Plan Training

10Itireleng Ma Afrika Agricultural Cooperative

Frances Baard Business Plan Training

11 Mo-Afrika Organic Farm Frances Baard Business Plan Training

12 Lithelihle Piggery Pixley Ka Seme Business Plan Training

13 Umsombovu Fresh Produce Cooperative Pixley Ka Seme Business Plan Training

14 Itireleng Dipudi Agricultural Cooperative John Taole Gaetsewe Business Plan Training

15 Tirisano Livestock Breeders Cooperative John Taole Gaetsewe Business Plan Training

16 Thou-Boswa agricultural cooperative John Taole Gaetsewe Business Plan Training

4.6.4 Export

South African International Trade Exhibition (SAITEX)

The 23rd South African International Trade Exhibition took place in June 2016 at the Gallagher Convention Centre in Midrand. The Department together with the Department of Economic Development and Tourism came together to set-up a Northern Cape Pavilion whereby opportunities were given to eight projects from the Province. The aim for the Pavilion was to market as well as secure potential national and international market linkages. The Department brought four agricultural projects to exhibit namely; Niewoudtville Rooibos, Emthanjeni Hydroponics, Henkries and Warrenton Superchicken. The trade exhibition was extremely beneficial as there were numerous interests in all four projects both from national and international markets.

Exhibition at the Intra-African Investment Symposium

On the 3rd of November 2016, the Department attended an Intra-African Investment Symposium at Mittah Seperepere Convention Centre. The Department exhibited the Niewoudtville Rooibos tea in order to create a possible market linkage to the Tanzanian market. The Tanzania Minister of Trade and Industry showed interest in the Rooibos tea. Even though no Memorandum of Understanding has been signed between the two parties, communication lines will be continued to ensure that this type of networking eventually yields some results for the farmers of the Rooibos tea

Export Certification Training

Three SA-GAP export trainings were conducted together with the Perishable Products Export Control Board (PPECB). The training sessions were conducted as a requirement of the export certification process. The following projects were trained:



NAME OF PROJECT LOCATION DATE TRAINED

Eksteenskuil Keimoes, ZF Mgcawu District 12TH, 13TH May 2016

Henkries Springbok, Namakwa District 08th February 2017

Blocuso Trust Upington, ZF Mgcawu District 02nd March 2017

Introduction to Export and Incoterms Training with the Department of Trade and Industry

The Department of Trade & Industry together with the Department of Economic Development & Tourism arranged a three day ‘Introduction to Export’ in Kimberley during August 2016. The Department arranged that two projects be brought to this training. Two farmers from Warrenton Super chicken and Henkries attended. The training aimed to introduce the basic concepts and information on exporting as well as understanding the relevant INCOTERMS (International Commercial Terms) to smallholder farmers. The training was both theoretical as well as practical where all attendees were requested to complete the necessary questions in order to successfully pass the training.

Exhibiting at the 7th Biennial LandCare Conference

The 7th Biennial LandCare Conference took place during October 2016. The department exhibited six projects at the afore-mentioned event in order to create brand awareness as well as to network with potential buyers/markets. The six projects that exhibited were; Niewoudtville Rooibos, Warrenton Superchicken, Manyeding, Emthanjeni Hydroponics, Henkries, Chikaina and Tshwaraganang.

4.6.5 Financial Record Keeping Training

Training on financial record keeping is provided to Districts through the Farmer Training and Capacity Building programme. Training was provided to 149 farmers during 10 training events held in the Districts of Frances Baard (3events), JTG (2 events), ZF Mgcawu (2 events) and Namakwa (3 events). From the farmers attending, 40 (27%) were youth and 77 (52%) were females.

4.6.6 Economic Studies

Fifteen economic studies were conducted and reports produced during this financial year:

NAME OF STUDY

1 Patryskraal Portion 1 – Agricultural Potential Report (APR)

2 Patryskraal Portion 2 – APR

3 Food Cost Review in Rural Areas

4 Agricultural Commodities Price Analysis (Quarter 2)

5 Commonages in Carnavon – APR

6 Commonages in Van Wyksvlei – APR

7 Commonage in Vosburg – APR

8 Metsi Botshelo Business Plan


10 Vooruit Boerdery Ltd: Lucerne Establishment Business Plan

11 Oteng Cooperative: Poultry Business Plan

12 Food price Monitoring in rural areas of the Northern Cape Province




4.7 Programme 7: Rural Development Coordination

Purpose: The purpose of the programme is to co-ordinate the intervention programmes of all departments and institutions in rural areas to ensure that the land and agrarian reform and rural development mandate is achieved. To coordinate joint planning, identify specific areas for targeted interventions, and monitor progress with CRDP implementation plans in the province.

Sub- Programmes:• Development Planning and monitoring• Social Facilitation

Strategic Objectives:• To ensure Comprehensive Rural Development;• To support development structures at CRDP Sites; and • To facilitate provision of services to 2500 farmworkers and dwellers.



Programme: 7 Rural Development Coordination

Strategic objective






To ensure Comprehensive Rural Development

13 5 5 0

To support development structures at CRDP Sites

11 5 5 0

To facilitate provision of services to 2500 farmworkers and dwellers.

603 500 855 355 Engagement with other departments’ e.g SASSA conducting poverty relief program for farmworkers resulted in more farmworkers been reached.


Sub-programme: 7.1 Development Planning

Performance Indicator Actual Achieve-ment2013/2014







7.1.1 Number of CRDP implementation plans developed per site

1 5 5 5 5 0

7.1.2 Number of technical forum meetings convened

- - - 5 3 -2 There were attendance challenges. This committee has been aligned and will report under Outcome 7



Sub-programme: 7.1 Development Planning








7.1.3 Number of CRDP progress reports compiled

12 4 4 4 4 0

7.1.4 Number of reports on outcome 7

4 4 4 4 4 0


The reason for these targets not been achieved is that they are dependent on various stakeholders contributing to their achievement. The Department experienced challenges with non-attendance of stakeholders, misaligned participants to meetings. These structures have been aligned and will report under the Outcome 7 Technical Implementation Forum.

Sub-programme: 7.2 Social Facilitation








7.2.1 Number of structures establish to achieve social cohesion and development

12 0 3 5 4 -1 The Kamiesberg Local Municipality could not confirm date for the establishment of the Council of Stakeholders

7.2.2 Number of structures supported to achieve social cohesion and development

- 15 11 5 5 0

7.3.1 Number of farmworker advocacy sessions held

14 16 22 20 21 1 SASSA poverty relief program for farmworkers resulted in convening more sessions than planned.

7.3.2 Number of Provincial delivery forum meetings held

- 4 3 4 3 -1 The meeting was convened but couldn’t continue due to fewer stakeholders attending

7.3.3 Number of farm workers and dwellers assisted to access government services

403 554 581 500 860 360 SASSA poverty relief program for farmworkers resulted in more farmworkers been reached.




The reason for these targets not been achieved is that they are dependent on various stakeholders contributing to their achievement. The Department experienced challenges with non-attendance of stakeholders, misaligned participants to meetings.


None



Pr 7: Rural Devlopment

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Rural Development Coordination

13 638 13 630 8 12 916 12 900 16

Total 13 638 13 630 8 12 916 12 900 16


4.7.1 Comprehensive Rural Development Program (CRDP)

The Department continued to implement facets of the CRDP during the year under review. The CRDP framework seeks to improve the livelihood of people in rural areas by amongst others: dealing effectively with state land administration; improvement or development of economic infrastructure; providing basic needs for farm dwellers and workers, social mobilisation to enable rural communities to take initiative in their development and delivery partners to achieve an integrated and inclusive rural economy.

4.7.2 Agricultural Potential Reports (APR)

The Department conduct APR`s for farms that must be purchased for land reform purposes. This report determines whether the farm is suitable for agricultural purposes or not. It highlights the conditions of the existing infrastructure in order to negotiate for a better price. During the period under review the following APR’s were completed and send to Department of Rural Development and Land Reform for consideration.



DISTRICTS APR’S received Extent (ha) Land Use

Frances Baard •Newlands farm •59.8097 Mixed farming (livestock and crop production)

•Melkvlei •1532.584 Mixed farming (livestock and crop production)

•Portion 1 of Farm no. 113 •2567.0080 Mixed farming (livestock and crop production)

•Karolusdrift •1060.9926 Mixed farming (livestock and crop production)

•Rus en Vrede •834.3736 Mixed farming (livestock and crop production)

•Remaining extent of portion 3 (Onverwag) of the farm Elandsdrift no. 159

•513. 9213 Mixed farming

•Portion 11 and remaining extent of portion 21 of Roodepan no. 70

•59.8097 Crop production

•Remainders of farm Zoelenslaagte 158 and farm Holpan Hotel 364

•1846.0485 Mixed farming

•Portion 2 of farm 134 (Weltevreden)

•712.2777 Livestock production

•Farm Kalkfontein •783.6982 Livestock production

•VH32 •606.6542 Livestock production

Namakwa •Matjeskloof •3991 Livestock production

•Remhoogte •5193.4271 Livestock production

•Kromkolk •4677.4310 Livestock production

•Jobskolk •8822.3971 Livestock production

•Brakfontein No 266 •7510.085 Livestock production

•Portion 1 of farm Kromkolk 338 •4677.4310 Livestock production

•Farm 508 of Onverwag •1879.9984 Livestock production

•Mosquito kraal •4338.3145 Livestock production

•Bloubos •11032.9816 Livestock production

Z.F Mgcawu •Kalk Bult •6031.6813 Livestock production

•Remainder of Farm Avilion No. 325 & portion 1 of the farm Kalkpoort landgoed No. 627

•16 857 Livestock production

•Remaining of portion 1 Welgelegen Farm Rooiputs

•6637 Livestock production



The Department participated in the District Land Reform Committees in all districts. The following farms were purchase during financial year 2016/17:

Prov-ince

District Farm name

Property description

Hectares Commodity Allocated to

Target group

NC Pixley ka Seme

Goodhope Portion 2 (Good Hope) of the Farm Naauwe Kloof Nr 122

2587.2562 Red meat Mr Gerhardus Timotheus Saaiman

Smallholder

NC Pixley ka Seme

Duurwater Portions 23 & 26 (Duurwater) Farm Readsdrift No. 74

1832.4963 Red meat Mr Cornellius Townsend

Smallholder

NC Frances Baard

Plot 84 Plot 84, Portion of plot 1 Vaalharts Settlement B

43,8072 Crop Production

Mr Wilson Giel

Smallholder (youth)

NC ZF Mgcawu

Droehout Portion 4 of the Farm Hedley Plain Number 266

6589. 9237 Livestock Production

Mr Franklin Heinrich Benade

Youth

NC Frances Baard

Witbank Portion 2 (Witbank) of Farm no 118

856.5320 Livestock Production

Ms Gairu Beukes

Smallholder

Prov-ince

District Farm name



Target group

NC John Taolo Gaet-sewe

Compton Ptn 0 of the farm No 169 (Compton)

1 960.2634 Livestock Production

Mr Tetelo Waiting Kgopodith-ate

Youth

NC Pixley ka Seme

Kleindoor-npan

Portion 4 of the Farm Kleindoorn-pan no 123.


Mr Piet Kerneels Jan Wilson

Farm dweller

NC Frances Baard

VH32 Plot 1043 of plot 393 Vaalharts Settlement B

606.6542 Crop & Livestock Production

Mr Thapelo Tlhokwe

Agricultural Graduate



Prov-ince

District Farm name



Target group

NC ZF Mg-cawu

Brulkolk Remain-der of farm Brulkolk No. 154 and Portion 1 (De Dam) of farm Longziek-Vlei No. 151


Mr Jo-hannes Van Wyk

Smallhold-er

NC Namak-wa

Breek Been Kolk

Breek Been Kolk (Por-tion 4 of farm Zwart Kolk no 253; Portion 2 of farm Breek Been no 293; portion 3 of the farm Breek Been no 293


Mr Karel Jacobus Jonkers

Smallhold-er

NC Namak-wa

Avoca Portion 1 (Avoca) of the Farm Uit-vlugt No.90


Mr. Jan van Wyk

Smallhold-er

Total 36657.0487

4.7.3 Providing Basic Needs for Farm Dwellers and Workers

The Department facilitated the donation of Gazebos, Chairs and tables from the Mme Re Ka Thusa Trust Fund to enable dwellers from Loopeng, Maphiniki and Seoding to establish their own small businesses. 20 female farmworkers in the John Taolo Gaetsewe District were assisted by the Trust to acquire drivers’ licences. This programme was aimed at empowering rural women so that they can become employable. Mme Re ka Thusa advised farm workers on available funding for projects and also on procedures to follow to access the funding.

The National Youth Development Agency (NYDA) provided the Department with sanitary towels. They were distributed to farmworkers, farm dwellers and their children.

The Department assisted the community of Deurwaard after there was an outcry of shortage or lack to access of portable consumable water. The matter was escalated to the municipality for their urgent intervention. After this intervention by the Department, water was provided to the community.

The Department in October 2016 held a successful Conference on Farmworkers Equity Schemes in the Province. This was necessitated by cases reported to the Department regarding the abuse of these schemes that resulted in beneficiaries loosing almost all their shares, dismissed from farms they had shares and evicted from the farms. The Conference was addressed by representatives from National Prosecuting Authority, Lawyers for Human Rights, AFASA, NAFU, Department of Agriculture Land Reform and Rural Development, Department of Rural Development and Land Reform, and representatives from different Farm Equity Schemes. A Task Team composed of all stakeholders was established to seek recourse and justice for farm workers who participated in these BBBEE schemes. A program of action was developed and the task team meets quarterly to monitor and assess the implementation of resolutions taken at the conference.



BACKGROUND TO FARMWORKERS EQUITY SCHEMES

CONTRIBUTIONS and %

SCHEMES COMMERCIAL FARMER FARMWORKERS NUMBER OF BENEFICIARIES

Vaallus 75% Property

25% R6m

95

Jonker Water 51% Property valued at R 1.2m

49% R 480 000. 00

32

Rekopane 75% Property value at R 56m

25% R 14m

65

Sonvrucht 55% R 7.7m

45% R6.3m

42

Opwag Farm 25% 75% R 542 500

58

Sheep power 34% R4.59m

66% R8.9m

10

4.7.4 Advocacy Sessions

The Department for the financial year under review focused on the farmworkers children learner transportation. The Department of Transport, Safety and Liaison was engaged to attend to the problems referred. Stakeholders were mobilised and inducted on the importance of the provision of this service as it contributed immensely to the education and development of the most vulnerable and the poor children in farming communities.

Farm workers and farm dwellers were work shopped on the 2010 Farm Workers Summit Resolutions which focused on Social Determinants, Health, Education and Training . Sessions were held in the following areas:• Magobing Communal Area• Madibeng Communal Area• Vergenoeg Communal Area• Babathas Restituted Farm• Kono Restituted Farm• Kuruman ( farm dwellers from different areas)

At these sessions, Mme Re Ka Thusa educated communities on how to start their own businesses and the funding available for these projects. Local Government Councilors also utilized these sessions to listen and attend to issues of service delivery as raised by communities mentioned above. The Department of Justice and the Department of Social Development educated communities about domestic violence, morality, family relationships and marriage and this became part of commemorating 16 Days of Activism against Gender Based Violence Awareness.

4.7.5 Government Services

Due to lack of formal skills training for farm workers in the province, the Department organized programmes aimed at ensuring that the knowledge they have acquired should be recognised assist in creating job opportunities with the skills acquired. These workers were trained on Tractor Maintenance and Welding Skills. They received certificates after the training. The Training Sessions were held in the following Districts: • Frances Baard - Phokwane • ZF Mgcawu – Kai Garib• Pixley Ka Seme – Siyancuma• John Taolo Gaetsewe.

The Local Councillors informed workers about Basic Municipal Services and procedures they needed to follow in order to raise governance issues.



The Department in collaboration with SASSA managed to register 596 farm workers in the ZF Mgcawu and John Taolo Gaetsewe Districts for poverty relief programme in order for them to get food parcels. Lawyers for Human Rights took up a case of eviction of farm workers who were illegally evicted from the Rekopane Farm in the ZF Mgcawu District. This case was reported at the Farm Equity Conference that was held in Upington.

4.7.6 Provincial Delivery Forum

The Provincial Delivery Forum was established to ensure that relevant state departments, commercial farmers unions and non-governmental organisations meet on a quarterly bases to discuss matters affecting the industry. The Department decided to approach farmers as stakeholders in their endeavour to stabilise the farming sector given tensions that are always there between farmers, farm workers and farm dwellers. Farmers in the Frances Baard District were invited to the PDF meeting in Phokwane where the Department together with the Department of Labour briefed farmers on services available for farm workers and farm dwellers. Farmers were also informed of the importance of complying with the law, Sectorial Determination, importance of registering their employees and the dangers of employing illegal immigrants in their farms.

4.7.7 Social Mobilisation

The Department initiated the process in collaboration with National Department of Public Works to register 5 Cooperatives namely: Oteng Agricultural Coop, Metsi Botshelo Primary Coop, Ratanang Primary Coop, Tshiamo Primary Coop & Marang A Lesedi Primary Coop in Maphiniki.

A total number of 4 Council of Stakeholders(CoS) were established for the Noupoort and Navalspond communities in the Umsobomvu Municipality, Pixley ka Seme District Municipality, Kenhardt and Eksteenskuil in the Khai Garib Municipality, Z.F Mgcawu District Municipality. The CoS which was established in the previous quarter was inducted on the CoS roles and responsibilities. The Department supported a smallholder farmer and a community garden with seeds in Noupoort.

The Riemvasmaak Council of Stakeholders was provided with vegetable seeds to supply to emerging farmers. The Ditsa IMN and Adams Boerdery in Sending were beneficiaries of these vegetable seeds.

The Department held a meetings with the Eksteenskuil and Riemvasmaak Cos and Khai Garib municipality. The meeting resolved that all resolutions of the CoS must serve on the agenda of the Municipal Council meeting for processing.

The two Council of stakeholders for Riemvasmaak and Eksteenskuil were also supported by conducting induction on roles and responsibilities.

Community garden in Riemvasmaak- Sending



Council of Stakeholders: Riemvasmaak Council of Stakeholders: Eksteenskuil

4.7.8 Outcome 7

Outcome 7 still remains an important mechanism of coordinating developmental contributions of all 3 spheres of government in the rural space.

It an important objective of the NDP in its quest to the reduction of poverty, unemployment levels and equality for the MTSF period. The MTSF has 6 priorities areas namely;• Improved land administration and spatial planning for integrated development with a bias towards

rural areas;• Sustainable land reform (agrarian transformation);• Improved food security;• Smallholder farmer development and support (technical, financial, infrastructure) for agrarian

transformation; Increased access to quality basic infrastructure and services, particularly in education, healthcare and public transport in rural areas;

• Growth of sustainable rural enterprises and industries characterised by strong rural-urban linkages, increased investment in agro-processing, trade development and access to markets and financial services– resulting in job creation.

The Department as coordinator of Outcome 7 is tasked with the coordination of the planning, implementation and monitoring process of the outcome. The following delivery partner contribute to the outcome: Department of Social Development, Department of Sports Arts and Culture, Department of Health, Department of Education, Department of Transport, Safety and Liaison, Department of Environmental and Nature Conservation, Department of Cooperative Government Human Settlement and Traditional Affairs, Department of Economic Development and Tourism, Department of Roads and Public Works. National Departments such as the Department of Water and Sanitation, Department of Energy, Department of Land Reform and Rural Development, Department of Small Business and all the District Municipalities in the Province.

Following the MinTech and MinMec resolutions, the Department hosted a Service Delivery Workshop on 28-29 March 2017 to report on the midterm status of the outcome 7(Comprehensive Rural Development and food security). This workshop also focused on the coordination mechanism of the outcome.

Picture: Outcome 7 Service Delivery Workshop



Outcome 7 project visit – Iphemeleng Irrigation farm

4.7.9 State Land Administration

The Alheit Haartebees Kleinboere are currently leasing 12 Ha from the national Department of Public Works. An application for implements and land for storage submitted to Public Works and the Department. Their application for funding has been approved for procurement of implements for the financial year 2017/18. The unit Macro-economics and statistics also assisted by conducting workshops on financial record keeping.

Vastrap portion 97 and Klaarkry portion 96 situated in ZF Mgcawu District. The farm is ± 3300 Ha in extend, divided into 6 camps and two emerging farmers appointed as caretakers. The emerging farmers have divided the camps equally according to the availability of water. The Department assisted Drie Plotte women’s project in Frances Baard by installing a centre pivot. The women have planted lucerne.

During the state land visit at Vioolsdrift the farmers were advised to consolidate two plots namely: plot 62 that is under the caretakeship of one of the farmers and plot 156 which is leased to two farmers in order be able to increase production and generate profit.

Eiland Women’s Project

The farmers have been allocated additional 10 Ha of irrigation land for cash crop production in order to sustain the project.

Massakloutjie

The farm was allocated to three emerging farmers under a mentorship programme in 2005 until 2011. After the mentorship programme farmers were given two years lease contracts which were renewable. The project experienced a lot of challenges like overstocking and illegal occupants. The farm was issued with directives (legal notice of instruction to either reduce stock or rest some camps) because of poor land use management. Two beneficiaries were evicted as result of non-payment of rental, water and for sub-letting some camps without permission from the state. The Department in collaboration with National Department of Public Works applied for a court order to evict an illegal occupant who refused to vacate the farm. The matter is currently with the Office of the State Attorney.

A meeting was convened with National Department of Public Works to address the issue of outstanding lease agreements as well as high rental charged on state land leased out by Public Works. The high rental is creating challenges for merging farmers. The meeting resolved that the province should come up with a standard formula for the calculation of rental on state land and also to engage with other stakeholders like Municipalities and the Department of Rural Development and Land Reform to determine rental that shouldn’t disadvantage emerging farmers.



5. TRANSFER PAYMENTS

The table below reflects the transfer payments made to public entities for the period 1 April 2016 to 31 March 2017

Name of Public Entity

Services rendered by the public entity Amount transferred to

the public entity (R’000)

Kalahari Kid Corporation

• Management of the production farm• Marketing of animals and animal products• Marketing of animals from co-operatives and

procurement of goods from emerging farmers

R2 550

National Agricultural Marketing Council

• Market and economic research• Statutory measures• Agricultural trust• Agri-business development

R32 405

6. CONDITIONAL GRANTS

6.1 Conditional grants and earmarked funds received:• An overview of grants received, including types and total amount received.• An indication of the total amount of actual expenditure on all allocations.• Confirmation that all transfers were deposited into the accredited bank account of the Provincial

Treasury.• An indication of the extent to which the objectives were achieved, with a comparative analysis of

provincial performance against targets. Where performance fell short of expectations, outline the reasons and measures taken to improve performance in the coming years if the grant is continuing.

• An overall assessment of compliance with the Act, and an explanation of any measures taken in situations where there was non-compliance

Conditional Grant 2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

1. Comprehensive Agricultural Support Programme Grant

129 924 118 314 11 610 135 768 134 127 1 641

2. Illima / Letsema Projects Grant

55 222 52 022 3 200 69 460 69 288 172

3. LandCare Programme Grant: Poverty Relief and Infrastructure Development

9 320 9 306 14 7 302 7 256 46

4. Expanded Public Works Programme Integrated Grant

2 000 1 992 8 2 000 1 999 1

Total 196 466 181 634 14 832 214 530 212 670 1 860



The total budget allocation for the 2016/17 financial year amounted to R196.466 million of which R181.634 million or 92 percent was spent. The full amount that was appropriated to the department was received and none of the funds were withheld by any of the transferring departments. All the funds of the conditional grants that were appropriated to the department were transferred into the accredited bank account of the Provincial Treasury and then subsequently transferred into the bank account of the department.

The unspent portions of the CASP and Ilima/Letsema were requested for rollover to the 2017/18 financial since these funds were committed to identifiable projects. The specific performance of each grant is discussed in detail under the relevant programme that administers and implements the grants

The table/s below details the conditional grants and ear marked funds received during for the period 1 April 2016 to 31 March 2017.

Comprehensive Agricultural Support Programme Grant

Department who transferred the grant

National Department of Agriculture, Forestry and Fisheries

Purpose of the grant

To provide effective agricultural support services, promote and facilitate agricultural development by targeting beneficiaries of land restitution and redistribution, and other black producers who have acquired land through private means and are engaged in value-adding enterprises domestically, or involved in exportsTo address damage to infrastructure caused by floods.

Expected outputs of the grant

• Farmers supported per category (subsistence, smallholder and black commercial farmers)

• Youth, women and farmers with disabilities supported through CASP• On - and off - farm infrastructure provided and repaired• Land under agricultural production (crop and livestock)• Yields per unit area• Beneficiaries of CASP trained on farming methods or opportunities along the value chain• Beneficiaries of CASP accessing markets• Jobs created• Extension personnel recruited and maintained in the system• Extension officers upgrading qualifications at various institutions• Agriculture Information Management System (AIMS) implemented in all 9 provinces



Actual outputs achieved

Farmers supported per category (subsistence, smallholder and black commercial farmers)• Subsistence:534• Smallholder:2203• Commercial:209

Youth, women and farmers with disabilities supported through CASP• Youth: 996• Women:1657• Farmers with disabilities: 3

On - and off - farm infrastructure provided and repaired• Inner Fencing 89 km • Border Fencing 153km

Stock handling facility e.g. Crush Pens structures 29Stock water systems/structures 29Number: Boreholes (drilled & tested)60 (28 drilled)Land under agricultural production (crop and livestock)Crop 308 45Yields per unit area Oats 1 ton/haBeneficiaries of CASP trained on farming methods or opportunities along the value chainCourses in small stock production, veldt management, crop production & financial management, etc.1200• Farmers days 650

Demonstration tours to experimental farms 75Mentorship 93

Beneficiaries of CASP accessing markets• 1884 female• 418 male

Jobs created • Male• Female• Youth

Extension personnel recruited and maintained in the system• Salary payment of 46 Extension Officials • No new officials appointed

Extension officers upgrading qualifications at various institutions• officials obtained advanced diplomas in agricultural extension• 1 official obtained a B Tech in project management.

Agriculture Information Management System (AIMS) implemented in all 9 provinces

Amount per amended DORA

R129.924 million

Amount received (R’000) R129.924 million

Reasons if amount as per DORA was not received

Not applicable

Amount spent by the department (R’000)

R118.314 million

Reasons for the funds unspent by the entity

Reasons for deviations on performance

none

Measures taken to improve performance

Implementation of projects within the financial year

Monitoring mechanism by the receiving department

Monthly reporting and quarterly reporting



Ilima/Letsema Projects Grant



Purpose of the grantTo assist vulnerable South African farming communities to achieve an increase in agricultural production and invest in infrastructure that unlocks agricultural production.


Land under agricultural production (crop and livestock)Yields per hectares of land plantedJobs createdBeneficiaries/farmers supported by the grant per categoryHectares of rehabilitated and expanded irrigation schemes


Land under agricultural production (crop and livestock)• 989.63 ha crop• Grazing 73 500 ha

Yields per hectares of land planted• Maize 11 ton/ha • Wheat 10 ton/ha• Dry beans2ton/ha• Raisins 3.5 ton/ha• Wine grapes 30ton/ha

Jobs created• Male :• Female:• Youth:

Beneficiaries/farmers supported by the grant per category• Subsistence 534• Smallholder 2203• Black commercial 209

Hectares of rehabilitated• 3384 m of subsurface drainage was installed to drain 25 ha• 2675m of main communal line was installed • 2 Irrigation dams was built to cover 50 ha

Infrastructure through the grant• 1 Hydroponics structure• 10 ha trellising infrastructure

Centre pivots• Drieplotte 56 ha• Rooibuilt 23 ha• Kalkput 9 ha• Lechwiti 17.5

Infrastructure through the grant

Amount per amended DORA (R’000)

R55.222 million



N/A


R52.022 million



None



Monthly reports and quarterly reports



Land Care Programme Grant: Poverty Relief and Infrastructure Development




To promote sustainable use and management of natural resources by engaging in community based initiatives that support the pillars of sustainability (social, economic and environmental) leading to greater productivity, food security, job creation and better well-being for all.


• Hectares of rangeland protected and rehabilitated• Hectares of land protected and rehabilitated• Number of Junior Care participants involved in the programme• Number of hectares of land where water resources are protected and rehabilitated• Number of capacity building initiatives conducted for Junior Care• Number of capacity building initiatives conducted for Land Carers• Number of awareness campaigns conducted and attended by Land Carers• Number of Land Care committees/Land Care groups established• Hectares of land where weeds and invader plants are under control• Number of kilometres of fence erected• Number of green jobs created expressed as Full Time Equivalents (FTEs)


• 4700 Hectares of rangeland protected and rehabilitated• 160 Number of Junior Care participants involved in the programme• 0 hectares of land where water resources are protected and rehabilitated• 3 capacity building initiatives conducted for Junior Care• 2 Number of capacity building initiatives conducted for Land Carers• 2 awareness campaigns conducted and attended by Land Carers• 4 Land Care committees/Land Care groups established• 252 green jobs created expressed as Full Time Equivalents (FTEs)

Amount per amended DORA (R’000)

R9.320 million



N/A


R9.302.000.00


N/A


N/A


N/A


Monthly and quarterly project visits.Monthly and quarterly reporting. (Finance and actual work reporting)

Expanded Public Works Programme Integrated Grant for Provinces


Na National Public Works


To incentivise provincial departments to expand work creation efforts through the use of labour intensive delivery methods in the following identified focus areas, in compliance with the Expanded Public Works Programme guidelines: road maintenance and the maintenance of buildings, low traffic volume roads and rural roads, other economic and social infrastructure, tourism and cultural industries, sustainable land based livelihoods and waste management.


• Number of people employed and receiving income through the EPWP• Increased average duration of the work opportunities created

Actual outputs achieved 1498 Ha

Amount per amended DORA

R2.000 million

Amount received (R’000)R2.000 million


N/A




R1.992 million


The intended output of 1200 Ha for the project was already achieved and the funds remaining was not sufficient to extend the project.


N/A ( The intended output was achieved)


N/A


• Conduct internal monitoring visits• Monthly reporting on the EPWP Reporting System as well final reporting• Submission of quarterly evaluation reports

7. DONOR FUNDS

7.1 Donor Funds Received

None

8. CAPITAL INVESTMENT

8.1 Capital investment, maintenance and asset management plan

The department did not undertake any major maintenance for the year under review. There was however some minor maintenance that was done at some of the research stations. As was previously reported, there exists a significant backlog of infrastructure maintenance on the department’s research stations and the situation has not changed. This is proving a challenge to address since no dedicated funding has been made available. Management has committed itself to find the necessary resources within future budget allocations.

In total, there were 67 infrastructure type activities/projects that were undertaken in the 2016/17. An amount of R60.245 million was spent on new and replacement assets through 51 infrastructure type activities mainly associated with the flood scheme.The other significant infrastructure spend of R57.261 million in 2016/17 related to upgrades and additions on 8 different projects/activities.

The CASP and Ilima/Letsema grant account for 44 percent of the total money spent on infrastructure while the balance was mainly from the funds of the flood scheme for flood diversion walls.

Infrastructure projects

2016/2017 2015/2016

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

New and replacement assets

63,160 60,245 2,915 71,942 49,918 22,024

Existing infrastructure assets

61,790 60,015 1,775 45,345 63,197 -17,852

- Upgrades and additions

59,066 57,261 1,805 35,703 56,839 -21,136

- Rehabilitation, renovations and refurbishments

917 947 -30 5,909 2,707 3,202

- Maintenance and repairs

1,807 1,807 - 3,733 3,651 82

Infrastructure transfer

- - - -

- Current - -

- Capital - -

Total 124,950 120,260 4,690 117,287 113,115 4,172



1. INTRODUCTION

The Department scored an average score of 3.7 in the final Management Performance and Assessment tool (MPAT) 1.6, in the key performance area of Governance and Accountability. The areas where the department was found to be fully compliant with legal/ regulatory requirements and is doing this smartly (scoring the maximum of 4) are:• Functionality of management structures – the Department Executive (DEC), chaired by the

Accounting Office and its members are all the senior managers, while the Service Delivery Forum (SDF), is also chaired by the Accounting Officer and members include senior management and middle management. Internal Audit and Provincial Treasury are attendees of both mentioned management structures.

• Assessment of Accountability mechanisms, through the Audit Committee• Prevention of fraud and corruption• Assessment of Internal Audit Arrangements• Corporate Governance of ICT• Promotion of Access to information• Compliance with PAJA requirements

Performance areas where the department was found to be fully compliant with legal/ regulatory requirements (scoring of 3), • Service Delivery Improvement Mechanisms • Professional Ethics• Assessment of Risk Management

An improvement plan has been implemented to work toward obtaining a 4 with the next MPAT cycle.

2. RISK MANAGEMENT

The Department’s risk management policy and strategy were reviewed by the Risk Management Committee (RMC) on 01 April 2016. Risks assessments are conducted continuously through risk assessment workshops throughout the year. The workshops are held with each programme individually, while strategic risks are discussed at the DEC. The workshops discuss mitigating actions of existing risks, analysis of whether the actions are appropriately mitigating the risk, identification of new and emerging risks and designing specific actions to mitigate the new and emerging risks.

The Risk Management Committee (RMC) reviews the risk register to monitor the effective implementation of the risk management strategy in the department. The RMC met quarterly during the 2016/2017 financial year.

The Audit Committee has discussed the risk management process and the risk register at its quarterly meetings, where specific recommendations have been made to the Accounting Officer to improve and enhance risk management within the department.

An assessment on the impact of the risk management process specific to improvements in the department’s performance will be performed during the 2017/2018 financial year.

3. FRAUD AND CORRUPTION

The department’s fraud prevention plan was reviewed and approved on 01 April 2016 and the progress made in implementing the fraud prevention plan was discussed at the RMC on 29 November 2016 and 30 March 2017.

The anti-fraud and Whistle blower policy provides guidance on the mechanisms and processes to follow when reporting fraud and corruption. The policy has communicated to all officials.



4. MINIMISING CONFLICT OF INTEREST

Conflict of interest in Supply Chain Management (SCM) is minimized by, annual signing of a code of conduct by all officials involved in the SCM process, including members of departmental bid committees. This will be extended to all other role players in SCM especially at District level in 2017/18 going forward. Officials are not only required to sign code of conduct but are reminded and trained on what constitutes as conflict of interest and processes to follow should a conflict of interest be identified.

Departmental bid committee members (Evaluation and Adjudication Committees) sign a declaration of interest for each bid evaluated and adjudicated.

SCM officials in Contract Management unit checks with the Persal system for each bid awarded whether the shareholders/owners of companies doing business with the State are not state employees.

During the 2016/17 financial year there were 2 identified cases where the SCM unit discovered that some of the bidders awarded a bid by the Department that were state employees. The cases were investigated and appropriate procedures followed in dealing with those cases. All the bidders who failed to produce proof of permission or consent by their respective MEC’s to do remunerative work outside of their formal employment were not appointed to do work for the Department.

Company ownership and/or shareholders with regard to suppliers doing business with the State in the Department are also verified by using the Central Supplier Database reports.

During April 2017, SCM submitted a report to the Head of Department based on an enquiry from the Public Service Commission on a few employees of the Department with business interests. It was confirmed that none of those employees were found to have done business with the Department for the 2016/17 financial year.

5. CODE OF CONDUCT

During the year under review the department undertook information sessions throughout the province to capacitate new entrants and current employees on the Code of Conduct for the Public Service. This explanatory manual, together with the Disciplinary Code and Procedure are intended to serve as internal communication tools to reduce both misconducts and grievance cases in the department. The Code outlines and emphasize the importance of acceptable conduct from all employees, helps managers and supervisors who are entrusted with the responsibility of enforcing the code to apply same prompt and fairly. It further conveys consequences management for poor decisions. We had a total of 500 employees who attended these sessions which constitutes more than 80% of workforce and all these employees signed attendance registers indicating that they have received and understood the said code.

These information sessions were also aimed at promoting mutual respect between employees themselves, between employees and the employer, to avert and correct unacceptable conduct

For the year under review there has been an increase in Management understanding that discipline is their function due to the participation in the information sessions and supervisors are more empowered to exercise their expected and legal duties as outlined in the relevant prescripts that governs the workplace.

We continued to capacitate employees on new developments on labour matters, legislation amendments, policy change, and implementation of new policies and/or resolutions, all these endeavors were aimed a harmonizing and contributing towards labour peace at the workplace. The information sessions on different kinds of topics were also aimed at strengthening and deepening a common understanding between the employer and employees (STAKEHOLDERS), to provide an insight on acceptable conduct and standards within the workplace.



We continued vigorously to capacitate officials on the importance of the attendance register, to encourage official’s attendances, to be punctual and to respect their work, to build a culture and develop a great sense of the value of time.Furthermore this was aimed at making employees aware of the attendance expectations by the employer and the unintended consequences effects of excessive absenteeism to other colleagues, productivity and service delivery in the public service.

We will continue with this whole exercise of capacity building because as the department we strongly believe that this is the right step towards the right direction that will ultimately contribute to maximum discipline at the workplace, improved service delivery and increase employees’ morale towards attaining the strategic objectives of the department.

Code of Conduct Procedures:

The Labour Relations receives the formal written complaint from the Managers or Supervisors detailing with the offenses committed by their immediate subordinates for action and mediation

The following are exhausted by the Manager/Supervisor prior to referring the cases to Labour Relations:• The manager must bring the alleged misconduct to the attention of the employee.• Determine the reasons for the misconduct.• Give and employee an opportunity to respond.• Depending on the seriousness of the misconduct the manager must apply corrective counselling

or utilize a system of warnings.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

The Health, Safety and Environment (HSE) Unit’s purpose is to ensure compliance and implementation of the Occupational Health and Safety (OHS) Act 85 of 1993. Numerous activities and processes have led to the Department improving its compliance with the OHS Act. Currently there are Safety Representatives who have been nominated in all Departmental units, and they serve in averting emergencies and acting appropriately where workplace injuries occur. Safety Representatives are nominated and remain in office for a period of 3 years. They receive First Aid training which is also valid for 3 years.

In addition, all units have had safety audits conducted by the Safety Officer and the unit-based Safety Representatives. The audit report includes recommendations for compliance, where these have been identified and praises the unit managers where compliance was adhered to. Matters that have been challenging are related to staff changes, where trainings have been conducted, e.g. the firefighting training done for the farms has to be repeated due to staff changes.

Quarterly OHS committee meetings address all the health, safety and environmental issues highlighted by managers of the units. The matters addressed at the meeting are related to identification of occupational hazards, risks, OHS compliance issues and workplace injuries. Strategies and processes are identified and plans put in place to address any risk and non-compliance issues. Seventy per cent of Emergency evacuation plans have been developed and signed off by the Fire Department. The outstanding plans are still being developed. Annual emergency evacuation drills are done with the Fire Departments’ support at the Department, to ensure the employees evacuate safely from a building should a fire, hostage situation or a bomb scare occur.

In units where safety clothing is required this has been identified and managers requested to follow the procurement process for the purchase of these. Unfortunately, the process often takes long and workers end up doing their jobs without the safety clothing. This poses a risk for the Department should the worker have an injury on duty and it can be related to lack of safety clothing. Audits have revealed issues related to lack of maintenance, e.g. peeling paint, lack of storage space for equipment and paper, broken pipes and toilets which should be included in the unit maintenance plan.



7. PORTFOLIO COMMITTEES

DATE OF MEETING MATTERS DISCUSSED

5 May 2016 2016/2017 Annual Performance Plan

19 May 2016 Budget Speech (Vote 12) 2017

25 August 2016 4th QPR 2015/2016 Presentation

8 September 2016 1st QPR 2016/2017 Presentation

16 November 2016 Annual Report 2015/2016 Portfolio Committee and SCOPA

22 November 2016 2nd QPR 2016/2017 Presentation

22 March 2017 3rd QPR 2016/2017 Presentation

8. SCOPA RESOLUTIONS

SUBJECT RESPONSE BY THE DEPARTMENT

1. The department should improve its audit outcome in the next financial year by ensuring the performance information report is reliable, relevant.

The Department concurs and agrees that information as provided to the Auditor-General on performance information should be reliable and relevant. Additional controls have been put in place to ensure information as submitted for audit is reliable and relevant.

2. It is appropriate that the Accounting Officer take full responsibility by ensuring that all employees sign their performance agreements as required.

The Accounting Officer accepts responsibility to ensure that systems are put in place to monitor and track that all employees sign their performance agreements.

3. The department must actively manage and reduce liabilities by complying with legislation.

The department is on the modified cash accounting system and it has been managing its annual budget within the legal framework of virement, shifting and rollovers to ensure the maximisation of the annual available budget. Over the past 3-4 years the department has faced enormous pressure on budget cuts and therefor will ensure a progressive systematic reduction in liabilities that does not negatively impact on service delivery but simultaneously does not result in unauthorised expenditure.

4. Irregular expenditure must be avoided at all costs by monitoring and reviewing internal control measures on a monthly basis.

Control measures have been implemented, the monitoring and control thereof is done by the internal control unit. There has been a significant reduction in irregular expenditure for the 2016/2017 financial year, mainly attributed to finalisation of the departmental procurement policy and training. The department commits to ensuring that during the 2017/2018 financial year no transactions will be entered into that could result in irregular expenditure.

9. PRIOR MODIFICATIONS TO AUDIT REPORTS

The department obtained an unqualified audit opinion in the previous financial year. This displaying the progress made with the 2014/2015 modified report.

The following matters were reported on as matters of compliance:• Material misstatements identified by the auditors and corrected by the department• Findings on procurement and contract management• Effective steps not taken to prevent irregular expenditure• Effecitve steps not taken to prevent fruitless and wasteful expenditure• Ineffective consequence management



Matters of non-compliance

Financial year in which it first arose

Progress made in clearing / resolving the matter

Material misstatements identified by the auditors and corrected by the department

Improved review process on the Annual Financial Statements before 31 May 2017

Findings on procurement and contract management

Findings specifically relate to irregular expenditure.

Reduction in irregular expenditure through training and improved systems of internal control specific to SCM policies and procedures.

Effective steps not taken to prevent irregular expenditure

Reduction in irregular expenditure through training and improved systems of internal control specific to SCM policies and procedures.

Effecitve steps not taken to prevent fruitless and wasteful expenditure

Reduction in fruitless and wasteful expenditure will occur once effective consequence management processes are implemented. Officials that have caused fruitless and wasteful expenditure have received instruction letters and where evidence exists that the fruitless expenditure was incurred owing to negligence, such cases will be recovered from the officials.

Lack consequence management

Consequence management has been implemented, evidenced through the condonement processes of irregular expenditure. Recurring instances subsequent to instruction letters will follow a disciplinary process.

10. INTERNAL CONTROL UNIT

As discussed in the Accounting Officer’s report on irregular expenditure, the internal control unit played a significant role in 100% batch testing specific to the identification of irregular expenditure, fruitless and wasteful expenditure. The internal control unit comprising of a unit of 3 individuals, post identification of cases since 2014/2015 now had to focus on investigations of irregular, fruitless and wasteful expenditure, the subsequent condonement thereof and ensuring controls that are put in place, are adequate to prevent recurrence. The internal control unit plays a pivotal role in ensuring that consequence management is implemented on cases where repeat offenders have been identified.

The internal control unit also reviews all deviation requests and advises the CFO and HOD accordingly. The unit also provides training to officials where deviations on SCM processes are submitted. The unit also performs as a strong coordinating role with respect to both internal and external audit. The unit monitors findings, updates the audit action plan and facilitates audit matters between the auditors and the department.

11. INTERNAL AUDIT AND AUDIT COMMITTEES

Internal Audit

The department’s internal audit function is performed by the Shared Provincial Internal Audit Unit which fulfils an independent assurance function. The internal audit unit follows a risk-based audit approach in providing management and the audit committee with assurance on the adequacy and effectiveness of governance, risk management and internal control processes. The internal audit unit is guided by an Internal Audit Charter approved by the Audit Committee and performs its functions as provided in the Public Finance Management Act (PFMA) and the internal audit charter.



The internal audit unit compiles a rolling three year risk-based plan and prepares an annual plan after taking into consideration the risks facing the entity, strategic objectives, the entity’s mandate, audit issues and inputs by management. The audit committee approves the Internal Audit Plan for implementation. The internal audit reviews performed for the financial year under year, were all in line with the approved annual audit plan and are detailed in the Audit Committee annual report.

Internal audit findings were communicated timely and management implemented measures to mitigate the risks. Significant matters identified during the audit were reported to the Audit Committee.

Audit Committee

Throughout the year under review, the Audit Committee operated in terms of an approved Audit Committee Charter, which was the committee’s approved terms of reference. The committee comprise of three external members and two internal audit committee members, all of whom are not employed by the department.

The Audit Committee has, as part of its oversight responsibility on a quarterly basis, followed up on audit findings to ensure that issues raised were addressed timely. Further information relating to the Audit Committee, as required by the PFMA and Treasury Regulations is included in the Audit Committee’s Report, which is incorporated in the annual report of the entity.

In terms of PFMA, section 77(b), an audit committee must meet at least twice a year. In addition, Treasury Regulations, section 3.1.16, provides that an audit committee must meet at least annually with the Auditor-General. The audit committee met four times during the year in compliance with the PFMA and also met with the Auditor General.

The names of the members of the audit committee as well as the number of meetings attended by the members are tabulated below

# Name Internal or external member

Qualifications Date appointed Number of meetings attended

1 Mr. Zola Luxolo Fihlani

Chairperson - External member

M.Comm, CA (SA) 1/01/2015 – 30/11/2017

5 out of 5

2. Mr. Kgoale Maja

External member

Masters in Business Leadership (MBL)

1/01/2015 – 30/11/2017

5 out of 5

3. Mr. Mava Dada

External member

CA (SA) 1/01/2015 – 30/11/2017

3 out of 5

4. Ms Philia Potgieter

Internal member

Advanced programme in Supply Chain Management certificate; B Administration degree

1/01/2015 – 30/11/2017

4 out of 5

5. Mr. Darryl Christians

Internal member

Masters in Business Administration (MBA)

1/01/2015 – 30/11/2017

2 out of 5



12. REPORT OF THE AUDIT COMMITTEE FOR 2016/17

We are pleased to present our report for the financial year ended 31 March 2017. The Audit Committee has been functional throughout the financial year. The Audit Committee acknowledges the attendance and participation of the Accounting Officer and Senior Management in the Audit Committee meetings.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein and has discharged all its responsibilities.

The Effectiveness of Internal Control and Internal Audit

The Department has and maintains the Internal Control unit responsible for management of internal controls within the Department.

The Audit Committee is satisfied as to effectiveness of internal audit function during the year and that the internal audit activity has to a large extent addressed the risks pertinent to the Department. Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the Department revealed certain weaknesses, which were then raised with the Department.

The following internal audit work was completed during the year under review, based on the internal audit plan 2016/2017:

198

Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein and has discharged all its responsibilities. The Effectiveness of Internal Control and Internal Audit The Department has and maintains the Internal Control unit responsible for management of internal controls within the Department.

The Audit Committee is satisfied as to effectiveness of internal audit function during the year and that the internal audit activity has to a large extent addressed the risks pertinent to the Department. Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the Department revealed certain weaknesses, which were then raised with the Department.

The following internal audit work was completed during the year under review, based on the internal audit plan 2016/2017:

Leave management remains a challenge with the highest number of issues not implemented. Management has however developed a pragmatic action plan to address the issues within a reasonable time period. The Audit Committee monitored the implementation of the plan during the quarterly audit committee meetings and is satisfied with the implementation of its recommendations.

The Internal Audit activity also maintains combined assurance framework and plan which were developed in collaboration with the departmental risk

00.5

11.5

22.5

33.5

Significant

Housekeeping

Critical

Housekeeping CriticalSignificant

Leave management remains a challenge with the highest number of issues not implemented. Management has however developed a pragmatic action plan to address the issues within a reasonable time period. The Audit Committee monitored the implementation of the plan during the quarterly audit committee meetings and is satisfied with the implementation of its recommendations.

The Internal Audit activity also maintains combined assurance framework and plan which were developed in collaboration with the departmental risk management unit and Auditor General. The plan has been useful in ensuring that assurance is placed at all high risks by various assurance providers.

In-Year Management and Monthly/Quarterly Report

The Audit Committee satisfied itself of the expertise, resources and experience of the departments finance function.



The Department has been reporting monthly and quarterly to Provincial Treasury as is required by the PFMA. We had engagements with the Department’s management to provide clarity on completeness and quality of the monthly and quarterly reports during our quarterly meetings and officials of the Department were able to clarify areas of concern raised by the Audit Committee.

Evaluation of Financial Statements

• The Audit Committee reviewed the financial statements for the year ended 31 March 2017 at a meeting which took place 24 May 2017. In addition the Audit Committee reviewed the draft Annual Report of the Department.

• The Audit Committee reviewed the accounting policies which were applied in the compilation of the annual financial statements and confirm if the policies are consistent with those of prior year, have been consistently applied and are in accordance with the National Treasury guidelines.

• The Audit Committee reviewed the Department’s compliance with legal and regulatory provisions during the quarterly audit committee meetings and management was directed to implement remedial measures where instances of non-compliance are noted.

• The Audit Committee also reviewed quarterly financial and 6 monthly Interim Financial Statements as presented to it by IA and management. It interrogated monthly IYM on expenditure as well as status of payment of accruals and commitments. Status of clearing irregular expenditure by the department was monitored throughout the year.

Meeting with Member of the Executive Council

The Audit Committee met with the MEC for Agriculture, land reform and rural development on 24 May 2016 to discuss matters of outmost importance to the committee and department. The Committee appreciate commitment and support from the office of the MEC to ensure that the Committee as well the department fulfil its obligations.

Auditor-General South Africa

We have reviewed the Department’s implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been adequately resolved.

The audit committee met with representatives from the Office of the Auditor-General South Africa during the year and discussed issues of mutual concern and ensured that there are no other unresolved issues.

The Audit Committee reviewed the audit and management reports for the audit of 2016/17 annual financial statements in a meeting held 26 July 2017. The Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

____________________________

Z. Fihlani

Chairperson of the Audit Committee

Northern Cape Department of Agriculture, Land Reform and Rural Development

Date: 26 July 2017



1. INTRODUCTION

The department currently employs a total of 606 employees, of which 570 are permanent employees and 36 are on a contractual basis. Staff vacancy rate was 8.1. We confirm that all filled vacancies can be accounted for due to our monthly payroll certifications confirmed by the different program managers, therefor the PERSAL system reflects all warm bodies in the department. In the previous financial year, 2015/16, Human Resources coordinated the provincial biometrics headcount. The department then embarked on a departmental headcount in an attempt to ensure accountability for value of capital resources.

To ensure that employees perform optimally and that they remain motivated they are continuously encouraged to further their studies. For the year under review a total of 21 employees were awarded bursaries in different study fields. The bursary scheme also assist the unemployed youth to further their studies in various fields. A total number of 44 were funded and 6 graduates from the previous group. The later initiative is to continue expanding our pool of technical fields narrow the gap of skill scarcity in the department.

The EPMDS Compliance has improved and the department complied with signing and capturing of PA’s for all the 9 SMS members on PERSAL in accordance with MPAT requirements. We have seen an increase of officials’ participation in the Health and Wellness programme in terms of celebration of wellness awareness days for the financial year in review. We held four (4) wellness days in collaboration with GEMS and the Department of Health wherein officials tested for blood pressures, diabetes, cholesterol, IBM measurements and HIV/AIDS.

The use of sick leave in the department has decreased as oppose to the previous financial year. This may be attributed to the intensive assessments and rejection of temporary incapacity cases by the Health Risk Manager, Pro-Active Health Solutions. Management of leave remains a challenge, however, control measures were put in place to attempt to achieve our goal. Human Resource Management embarked on decentralizing leave to the Districts targeting Upington, De Aar, Jan Kempdorp, Springbok and Kuruman. We with the engagement of Provincial Treasury (Biometrics) and our Departmental PERSAL Controller, are halfway through with the implementation to allocate PERSAL to identified users.



2. HUMAN RESOURCES OVERSIGHT STATISTICS

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2016 to 31 March 2017

Programme Total ex-penditure

(R’000)

Person-nel ex-

penditure (R’000)

Training expendi-

ture

(R’000)

Profes-sional and

special services expendi-

ture (R’000)

Personnel expendi-ture as a % of total expendi-

ture

Average personnel cost per

employee (R’000)

Administration 108 054 62 895 0.00 0.00 58 104

Sustainable Resource Management

86 153 14 930 0.00 0.00 17 25

Farmer Support & Development

178 878 40 901 0.00 0.00 23 68

Veterinary Services

40 656 29 999 0.00 0.00 74 50

Research & Technology Development Services

43 364 29 475 0.00 0.00 68 49

Agricultural Economics Services

6 760 5 338 0.00 0.00 79 9


12 491 8 435 0.00 0.00 68 14

Total 476 356 191 973 0.00 0.00 40 317

Table 3.1.2 Personnel costs by salary band for the period 1 April 2016 to 31 March 2017

Salary band Personnel expenditure

(R’000)

% of total personnel

cost

No. of employees

Average personnel cost per employee

(R’000)

Lower skilled (Levels 1-2) 1 008 0.53 - -

Skilled (level 3-5) 37 855 19.92 241 157 073

Highly skilled production (levels 6-8)

58 858 30.97 197 298 770

Highly skilled supervision (levels 9-12)

55 593 29.26 104 534 551

Senior and Top management (levels 13-16)

10 977 5.78 11 997 877

Contract (Levels 1-2) - - - -

Contract (Levels 3-5) 1 758 0.93 13 135 261

Contract (Levels 6-8) 2 770 1.46 10 276 964

Contract (Levels 9-12) 4 600 2.42 11 418 149

Contract (Levels 13-16) 1 691 0.89 -- -

Periodical Remuneration 314 0.16 16 19 594

Abnormal Appointment - - - -

Total 175 423 92.32 605 289 955



Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2016 to 31 March 2017

Programme Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000

Salaries as a % of per-sonnel costs

Amount (R’000)

Over-time

as a % of per-sonnel costs

Amount (R’000)

HOA as a % of per-son-nel

costs

Amount (R’000)

Medical aid as a % of per-

sonnel costs

Administration 42 900 71.9 - - 1 582 2.7 2 853 4.8


10 82061.8 - - 259 1.5 562 3.2


26 879 65.7 - - 1 182 2.9 2 041 5

Veterinary Services

20 263 67.5 - - 738 2.5 1 207 4


18 630 64.9 660 2.3 1 205 4.2 2 188 7.6


3 748 73.8 - - 104 2.1 192 3.8


5 773 70.9 - - 268 3.3 399 4.9

Total 129 013 67.9 660 .3 5 338 2.8 9 443 5

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2016 to 31 March 2017

Salary band Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000


Amount (R’000)

Over-time as a % of per-

sonnel costs

Amount (R’000)

HOA as a % of per-

sonnel costs

Amount (R’000)


sonnel costs

Skilled (Levels 3-5)

24 454 64.2 432 1.1 2 658 7 4 256 11.2

Highly skilled production (Levels 6-8)

41 604 66.7 189 .3 1 894 3 3 420 5.5

Highly skilled supervision (Levels 9-12)

42 456 66.6 - - 613 1 1 471 2.3

Senior management (Levels 13-16)

9 093 71.5 - - 87 .7 155 1.2



Salary band Salaries Overtime Home Owners Allowance

Medical Aid

Amount (R’000


Amount (R’000)

Over-time as a % of per-

sonnel costs

Amount (R’000)

HOA as a % of per-

sonnel costs

Amount (R’000)


sonnel costs

Contract (Levels 3-5)

1 755 97.4 3 .2 - - - -


2 742 98 27 1 - - - -


4 599 87.5 - - - - - -


1 691 88 - - - - - -

Lower skilled (Levels 1-2)

619 61.4 9 .9 86 8.5 140 13.9

Total 129 013 67.9 660 .3 5 338 2.8 9 443 5

Employment and Vacancies

Table 3.2.1 Employment and vacancies by programme as on 31 March 2017

Programme Number of posts on approved

establishment

Number of posts filled

Vacancy Rate

Number of employees

additional to the establishment

Administration 194 175 9.79 0


45 38 15.56 0


137 127 7.3 0

Veterinary Services 94 86 8.51 0


129 117 9.3 0


13 13 0 0


32 31 3.13 0

Total 644 587 8.85 0

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2017

Salary band Number of posts on approved

establishment


Vacancy Rate

Number of employees


Skilled(3-5) 265 241 9.06 0.00

Highly skilled production (6-8) 209 197 5.74 0.00

Highly skilled supervision (9-12) 120 102 15.00 0.00

Senior management (13-16) 14.00 11.00 21.43 0.00



Salary band Number of posts on approved

establishment


Vacancy Rate

Number of employees


Contract (Levels 3-5), Permanent 13.00 13.00 0.00 0.00




Total 644 589 8.85 0.00

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2017

Critical occupation Number of posts on approved

establishment


Vacancy Rate

Number of employees additional

to the establishment

Administrative related, Permanent 73 61 16.44 0

Agricultural animal oceanography forestry & other science, Permanent

46 46 0 0

Agriculture related, Permanent 107 102 4.67 0

Auxiliary and related workers, Permanent

5 5 0 0

Biochemistry pharmacology. zoology & life science .technical, Permanent

6 4 33.33 0

Civil engineering technicians, Permanent

17 15 11.76 0

Cleaners in offices workshops hospitals etc., Permanent

42 37 11.9 0

Client inform clerks(switchboard receptionist inform clerks), Permanent

2 2 0 0

Communication and information related, Permanent

6 6 0 0

Economists, Permanent 9 9 0 0

Engineering Sciences Related Permanent

1 1 0 0

Engineers and related professionals, Permanent

5 4 20 0

Farm hands and labourers, Permanent

100 92 8 0

Farming forestry advisors and farm managers, Permanent

4 3 25 0

Finance and economics related, Permanent

1 1 0 0

Financial and related professionals, Permanent

7 7 0 0



Critical occupation Number of posts on approved

establishment


Vacancy Rate

Number of employees additional

to the establishment

Financial clerks and credit controllers, Permanent

13 11 15.38 0

Head of department/chief executive officer, Permanent

1 0 0 0

Horticulturists foresters agricultural.& forestry technical, Permanent

3 2 33.33 0

Human resources clerks, Permanent

7 4 42.86 0

Human resources related, Permanent

5 5 0 0

Information technology related, Permanent

5 4 20 0

Library mail and related clerks, Permanent

22 22 0 0

Logistical support personnel, Permanent

1 1 0 0

Material-recording and transport clerks, Permanent

13 12 7.69 0

Messengers porters and deliverers, Permanent

4 4 0 0

Motorised farm and forestry plant operators, Permanent

5 5 0 0

Other administrate & related clerks and organisers, Permanent

49 47 4.08 0

Other occupations, Permanent 1 1 0 0

Safety health and quality inspectors, Permanent

9 9 0 0

Secretaries & other keyboard operating clerks, Permanent

22 19 13.64 0

Security guards, Permanent 24 23 4.17 0

Senior managers, Permanent 12 9 25 0

Trade labourers, Permanent 5 5 0 0

Veterinarians, Permanent 12 9 25 0

TOTAL 644 587 8.85 0

Filling of SMS Posts

Table 3.3.1 SMS post information as on 31 March 2017

SMS Level Total number

of funded SMS posts

Total number of SMS posts

filled

% of SMS posts filled


vacant

% of SMS posts vacant

Head of Department (Level 15)

1 1 100% 0 0

Salary Level 14 5 5 100% 0 0

Salary Level 13 9 3 33.3% 6 66.6%

Total 15 9 60% 6 40%



Table 3.3.2 SMS post information as on 30 September 2016

SMS Level Total number

of funded SMS posts


filled

% of SMS posts filled


vacant

% of SMS posts vacant


1 1 100% 0 0

Salary Level 14 5 5 100& 0 0

Salary Level 13 9 4 66.% 5 0.82%

Total 15 10 1.7% 5 0.82%

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2016 to 31 March 2017

SMS Level Advertising Filling of Posts

Number of vacancies per level advertised in 6 months of becoming

vacant

Number of vacancies per level filled in 6

months of becoming vacant

Number of vacancies per level not filled in 6 months but filled in 12

months

Director-General/ Head of Department

0 0 0

Salary Level 16 0 0 0




Total 0 0 0

Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 6 months after becoming vacant for the period 1 April 2016 and 31 March 2017

Reasons for vacancies not advertised within six months

A moratorium was placed on filing of all vacant funded post in the across the

Province ( cost containment measures were put in place)

Reasons for vacancies not filled within six months

A moratorium was placed on filing of all vacant funded post

Job Evaluation

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2016 to 31 March 2017

Salary band Number of posts on approved establish-

ment

Number of Jobs Evaluat-

ed

% of posts evalu-

ated by salary bands

Posts Upgraded Posts downgrad-ed

Num-ber

% of posts

evaluat-ed

Num-ber

% of posts

evaluat-ed

Skilled (Levels 3-5) 263 0 0 6 0 0 0

Highly skilled production (Levels 6-8) 209 0 0 18 0 0 0



Salary band Number of posts on approved establish-

ment

Number of Jobs Evaluat-

ed

% of posts evalu-

ated by salary bands

Posts Upgraded Posts downgrad-ed

Num-ber

% of posts

evaluat-ed

Num-ber

% of posts

evaluat-ed

Highly skilled supervision

(Levels 9-12) 119 0 0 12 0 0 0

Senior Management Service Band A 7 0 0 2 0 0 0

Senior Management Service Band B 5 0 0 0 0 0 0

Senior Management Service Band C 1 0 0 1 0 0 0

Senior Management Service Band D 1 0 0 0 0 0 0

Total 605 0 0 39 0 0 0

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2016 to 31 March 2017

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 1 0 1 0 0

Total 2 0 0 0 2

Employees with a disability 0

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2016 to 31 March 2017

Occupation Number of employees

Job evaluation level

Remuneration level

Reason for deviation

_ 0 0 0 _

_ 0 0 0 _

_ 0 0 0 _

Total number of employees whose salaries exceeded the level determined by job evaluation

Percentage of total employed



Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2016 to 31 March 2017

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0 0 0 0 0

Total number of Employees whose salaries exceeded the grades determine by job evaluation

0

Employment Changes

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2015 to 31 March 2016

Salary band Number of employees at beginning of period-1 April

2016

Appointments and transfers

into the department

Terminations and transfers

out of the department

Turnover rate

Lower skilled (Levels 1-2) 78 0 0 0.00

Skilled (Levels3-5) 189 0 10 5.29


193 0 5 2.59


100 0 5 5.00

Senior Management Service Bands A

5 0 0 0.00

Senior Management Service Bands B

5 0 0 0.00

Senior Management Service Bands C

1 0 0 0.00

Senior Management Service Bands D

1 0 0 0.00

Contract (Levels 1-2) 4 0 0 0.00




Contract Band A Permanent 2 0 1 50.00

Total 606 5 35 5.78



Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2016 to 31 March 2017

Critical occupation Number of employees at beginning of period-April

2016

Appoint-ments and transfers

into the de-partment

Termina-tions and transfers out of the

department

Turnover rate

Administrative related, Permanent 63 2 1 1.59

Agricultural animal oceanography forestry & other science, Permanent 46 1 1 2.17

Agriculture related, Permanent 105 0 4 3.81

Auxiliary and related workers, Permanent 4 0 0 0.00

Biochemistry pharmacology. zoology & life science and technical, Permanent 4 0 0 0.00

Civil engineering technicians, Permanent 16 0 1 6.25

Cleaners in offices workshops hospitals etc., Permanent 40 0 3 7.50

Client inform clerks(switchboard receptionist inform clerks), Permanent 2 0 0 0.00

Communication and information related, Permanent 6 0 0 0.00

Economists, Permanent 9 0 0 0.00

Engineers and related professionals, Permanent 4 0 0 0.00

Farm hands and labourers, Permanent 98 0 5 5.10

Farming forestry advisors and farm managers, Permanent 4 0 0 0.00

Finance and economics related, Permanent 1 0 0 0.00

Financial and related professionals, Permanent 5 1 0 0.00

Financial clerks and credit controllers, Permanent 11 0 0 0.00

Head of Department/Chief Executives 1 0 0 0.00

Horticulturists foresters agricultural.& forestry technology, Permanent 2 0 0 0.00

Human resources clerks, Permanent 4 0 0 0.00

Human resources related, Permanent 5 0 0 0.00

Information technology related, Permanent 5 0 1 20.00

Library mail and related clerks, Permanent 23 0 0 0.00

Light vehicle drivers, Permanent 1 0 1 100.00

Logistical support personnel, Permanent 1 0 0 0.00



Critical occupation Number of employees at beginning of period-April

2016

Appoint-ments and transfers

into the de-partment

Termina-tions and transfers out of the

department

Turnover rate

Material-recording and transport clerks, Permanent 13 0 0 0.00

Messengers porters and deliverers, Permanent 4 0 0 0.00

Motorised farm and forestry plant operators, Permanent 6 0 1 16.67

Other administrate & related clerks and organisers, Permanent 44 0 0 0.00

Other administrative policy and related officers, Permanent 1 0 0 0.00

Other occupations, Permanent 1 0 0

Safety health and quality inspectors, Permanent 9 0 0 0.00

Secretaries & other keyboard operating clerks, Permanent 21 0 1 4.76

Security guards, Permanent 23 0 0 0.00

Senior managers, Permanent 10 0 0 0.00

Trade labourers, Permanent 6 0 0 0.00

Veterinarians, Permanent 9 1 1 11.11

TOTAL 606 5 20 3.30

Table 3.5.3 Reasons why staff left the department for the period 1 April 2016 to 31 March 2017

Termination Type Number

% of Total Resignations

Death 2 5.71

Resignation 9 22.86

Expiry of contract 15 42.86

Dismissal-operational changes 0 0

Dismissal – misconduct 4 11.43

Dismissal-inefficiency 0 0

Discharged due to ill-health 0 0

Retirement 6 17.14

Transfer to other Public Service Departments 4 0

Other 0 0

Total 25 100

Total number of employees who left as a % of total employment

5.96%



Table 3.5.4 Promotions by critical occupation for the period 1 April 2016 and 31 March 2017

Occupation Employees at 01 April

2016

Promo-tions to another salary level

Salary level promotions

as a % of employees by

occupation

Progres-sions to another

notch with-in a salary

level

Notch progres-sion as a % of employees by

occupation

Administrative related 63 1 1.59 30 47.62

Agricultural animal oceanography forestry & other science

46 0 0.00 26 56.52

Agriculture related 105 0 0.00 46 43.81

Auxiliary and related workers

4 0 0.00 4 100.00

Biochemistry pharmacology. zoology & life science and technical

4 0 0.00 2 50.00

Civil engineering technicians

16 0 0.00 6 37.50

Cleaners in offices workshops hospitals etc.

40 0 0.00 25 62.50

Client inform clerks(switchboard receptionist inform clerks)

2 0 0.00 0 0.00

Communication and information related

6 0 0.00 3 50.00

Economists 9 0 0.00 7 77.78

Engineers and related professionals

4 0 0.00 1 25.00

Farm hands and labourers

98 0 0.00 67 68.37

Farming forestry advisors and farm managers

4 0 0.00 1 25.00

Finance and economics related

1 0 0.00 1 100.00

Financial and related professionals

5 1 20.00 4 80.00

Financial clerks and credit controllers

11 0 0.00 9 81.82

General legal administration & rel. professionals

1 0 0.00 0 0.00

Horticulturists foresters agriculture.& forestry technology

2 0 0.00 0 0.00

Human resources clerks

4 0 0.00 2 50.00



Occupation Employees at 01 April

2016


Salary level promotions


occupation

Progres-sions to another

notch with-in a salary

level

Notch progres-sion as a % of employees by

occupation

Human resources related

5 0 0.00 4 80.00

Information technology related

5 0 0.00 2 40.00

Library mail and related clerks

23 0 0.00 10 43.48

Light vehicle drivers 1 0 0.00 0 0.00

Logistical support personnel

1 0 0.00 0 0.00

Material-recording and transport clerks

13 0 0.00 9 69.23

Messengers porters and deliverers

4 0 0.00 3 75.00

Motorised farm and forestry plant operators

6 0 0.00 4 66.67

Other administrate & related clerks and organisers

44 1 2.27 40 90.91

Other administrative policy and related officers

Other occupations 1 0 0.00 0 0.00

Safety health and quality inspectors

9 0 0.00 3 33.33

Secretaries & other keyboard operating clerks

21 0 0.00 12 57.14

Security guards 23 0 0.00 15 65.22

Senior managers 10 0 0.00 1 10.00

Trade labourers 6 0 0.00 5 83.33

Veterinarians 9 0 0.00 4 44.44

TOTAL 606 3 0.50 346 57.10

Table 3.5.5 Promotions by salary band for the period 1 April 2016 to 31 March 2017

Salary Band Employees at 01 April

2016


Salary bands promotions


salary level

Progres-sions to an-other notch

within a salary level

Notch progres-sion as a % of employees by salary bands


78 0 0.00 0 0.00

Skilled (Levels 3-5), Permanent

189 1 0.53 169 89.42



Salary Band Employees at 01 April

2016


Salary bands promotions


salary level

Progres-sions to an-other notch

within a salary level

Notch progres-sion as a % of employees by salary bands

Highly skilled production (Levels 6-8), Permanent

193 1 0.52 115 59.59

Highly skilled supervision (Levels 9-12), Permanent

100 1 1.00 61 61.00

Senior management (Levels 13-16), Permanent

12 0 0.00 1 8.33

Contract (Levels 1-2), Permanent

4 0 0.00 0 0.00


9 0 0.00 0 0.00


10 0 0.00 0 0.00


9 0 0.00 0 0.00


2 0 0.00 0 0.00

TOTAL 606 3 0.50 346 57.10

Employment Equity

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2017

Occupational category

Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers 12 0 0 0 5 3 0 0 10

Professionals 183 19 0 18 114 12 0 14 196

Technicians and associate professionals 71 11 2 14 63 12 1 6 100

Clerks 57 7 0 0 127 12 1 14 116

Service and sales workers 19 1 0 0 26 0 0 0 23

Skilled agriculture and fishery workers

Craft and related trades workers

Plant and machine operators and assemblers 6 4 0 0 0 0 0 0 5

Labourers and related 147 47 0 0 69 15 0 0 139

Total 495 89 2 32 404 54 2 34 589

Employees with disabilities

1 1



Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following

Occupational bands as on 31 March 2017

Occupational band Male Female Total


Top Management, Permanent 2 0 0 0 0 0 0 0 2

Senior Management, Permanent 6 0 0 0 1 2 0 0 9

Professionally qualified and experienced specialists and mid-management, Permanent 35 5 1 24 24 6 1 8 104

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 74 21 1 3 65 14 1 18 197

Semi-skilled and discretionary decision making, Permanent 75 60 0 0 75 25 0 6 241

Contract (Senior Management), Permanent 0 0 0 1 0 1 0 0 2

Contract (Professionally qualified), Permanent 4 0 0 3 2 1 0 1 11

Contract (Skilled technical), Permanent 4 1 0 0 1 3 0 1 10

Contract (Semi-skilled), Permanent 3 2 0 0 6 2 0 0 13

TOTAL 202 89 2 293 174 54 2 34 589

Table 3.6.3 Recruitment for the period 1 April 2016 to 31 March 2017



Top Management

Senior Management

Professionally qualified and experienced specialists and mid-management (Contract) 1 0 0 0 0 0 0 1 2

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents (Contract) 2 0 0 0 0 0 0 0 2





Semi-skilled and discretionary decision making (Contract) 0 0 0 0 1 0 0 0 1

Unskilled and defined decision making

Total 3 0 0 0 1 0 0 1 5


Table 3.6.4 Promotions for the period 1 April 2016 to 31 March 2017



Senior Management 1 0 0 0 0 0 0 0 1

Professionally qualified and experienced specialists and mid-management 23 2 0 12 16 4 1 4 62

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents 42 12 0 1 39 5 1 16 116

Semi-skilled and discretionary decision making 55 44 0 0 49 16 0 5 169

Unskilled and defined decision making 0

Total 121 58 0 13 104 25 2 25 348


Table 3.6.5 Terminations for the period 1 April 2016 to 31 March 2017



Senior Management

Professionally qualified and experienced specialists and mid-management

2 0 0 1 0 0 0 1 4

Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents

1 1 0 1 2 0 0 0 4

Semi-skilled and discretionary decision making

5 4 0 0 1 1 0 0 10





Contract (Professionally qualified)

0 0 0 1 0 0 0 0 1

Contract (Skilled Technical)

0 0 0 0 0 1 0 0 1

Total 7 5 0 3 4 2 0 1 20

Employees with Disabilities

Table 3.6.6 Disciplinary action for the period 1 April 2016 to 31 March 2017

Disciplinary action

Male Female Total


Dismissal 2 1 3

Three months suspension without salary

1 1

Final written warning & three months suspension without salary

1 1

Final written warning & Two months suspension without salary

1 1

Total 6

Table 3.6.7 Skills development for the period 1 April 2016 to 31 March 2017


Male Female Total


Legislators, senior officials and managers

0 0 0 0 0 0 0 0 0

Professionals 0 0 0 0 0 0 0 0 0

Technicians and associate professionals

0 0 0 0 0 0 0 0 0

Clerks 12 7 0 0 5 3 0 3 27

Service and sales workers


32 6 0 3 19 14 1 2 77


0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0




Male Female Total


Elementary occupations

Total 44 13 0 3 24 17 1 5 104


Signing of Performance Agreements by SMS Members

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 March 2017

SMS Level Total number of funded SMS

posts

Total number of SMS members

Total number of signed

performance agreements

Signed performance

agreements as % of total number of

SMS members


1 1 1 100

Salary Level 14 5 5 5 100

Salary Level 13 9 5 5 55

Total 15 11 11 85

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2017

Reasons

None

Performance Rewards

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2016 to 31 March 2017

Race and Gender Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within group

Cost (R’000) Average cost per employee

African

Male 67 202 40 1,007.31 112,750.78

Female 79 173 39 745.19 11,122.23

Asian

Male 1 2 50 55.66 55,656.30

Female 2 2 100 30.14 15,069.83

Coloured

Male 24 89 38 284.52 8,368.19

Female 34 54 44 301.74 12,572.47

White

Male 21 32 66 1,347.49 11,820.05

Female 18 34 53 1,077.07 11,581.38

Blacks

Male 114 293 39 518.85 24,708.14

Female 93 229 41 264.54 14,696.83



Race and Gender Beneficiary Profile Cost


Number of employees

% of total within group

Cost (R’000) Average cost per employee

Employees with a disability

1 0.00 0.00

TOTAL 246 589 42 3,207.95 13,040.44

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2016 to 31 March 2017

Salary band

Beneficiary Profile Cost


Number of employees

% of total within salary

bands

Total Cost

(R’000)

Average cost per

employee

Skilled (level 3-5) 114 241 47 679.94 5,964.41

Highly skilled production (level 6-8)

68 197 35 860.17 12,649.60

Highly skilled supervision (level 9-12)

62 104 60 1,509.04 24,339.28

Contract (Levels 3-5) 0 13 0 0 0.00

Contract (Levels 6-8) 0 10 0 0 0.00

Contract (Levels 9-12 0 11 0 0 0.00

TOTAL 244 576 42 3,049.15 12,496.52

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2016 to 31 March 2017

Critical occupation Beneficiary Profile Cost


Number of employees

% of total within

occupation

Total Cost (R’000)

Average cost per employee

Administrative related 30.00 61.00 49.18 555.10 18,503.36

Agricultural Animal Oceanography Forestry & other Scie 6.00 48.00 12.50 127.59 21,264.78

Agriculture related 28.00 101.00 27.72 514.86 18,387.78

Auxiliary and related workers 1.00 5.00 20.00 6.62 6,619.95

Biochemistry pharmacol. Zoology & life scie. Techni 2.00 4.00 50.00 39.93 19,964.93

Civil engineering technicians 8.00 15.00 53.33 181.17 22,646.14

Cleaners in offices workshops hospitals etc. 24.00 37.00 64.86 131.67 5,486.23

Client inform clerks (switchboard receptionist inform clerks) 0.00 2.00 0.00 0.00 0.00

Communication and information related 3.00 6.00 50.00 49.36 16,451.75

Economists 3.00 9.00 33.33 57.13 19,043.10



Critical occupation Beneficiary Profile Cost


Number of employees

% of total within

occupation

Total Cost (R’000)

Average cost per employee

Engineers an related professionals 0.00 1.00 0.00 0.00 0.00

Farm hands and labourers 1.00 4.00 25.00 23.46 23,455.68

Farming forestry advisors and farm managers 42.00 93.00 45.16 230.73 5,493.54

Finance and economics related 2.00 3.00 66.67 45.17 22,584.59

Financial and related professionals 1.00 1.00 100.00 24.18 24,179.64

Financial clerks and credit controllers 2.00 7.00 28.57 26.60 13,298.78

Head of department/chief executive officer 10.00 11.00 90.91 174.84 17,483.62

Horticulturists’ foresters’ agricultural & forestry technical 1.00 2.00 50.00 25.51 25,506.39

Human resource clerks 1.00 4.00 25.00 15.02 15,023.19

Human resources related 5.00 5.00 100.00 66.36 13,272.21

Information technology related 3.00 5.00 60.00 42.77 14,257.30

Library mail an related clerks 10.00 23.00 43.48 77.29 7,729.34

Light vehicle drivers 0.00 0.00 0.00 0.00 0.00

Logistical support personnel 0.00 1.00 0.00 0.00 0.00

Material-recording and transport clerks 4.00 12.00 33.33 37.35 9,336.30

Messengers porters and deliverers 1.00 4.00 25.00 5.50 5,503.65

Motorised farm and forestry plant operators 0.00 5.00 0.00 0.00 0.00

Other administration & related clerks and organisers 23.00 46.00 50.00 229.05 9,958.87

Other occupations 0.00 1.00 0.00 0.00 0.00

Safety health and quality inspectors 5.00 9.00 55.56 112.72 22,543.10

Secretaries & other keyboard operating clerks 11.00 18.00 61.11 99.02 9,002.03

Security guards 10.00 23.00 43.48 48.28 4,828.37

Senior Managers 1.00 9.00 11.11 122.30 122,298.12

Trade labourers 4.00 5.00 80.00 24.77 6,193.27

Veterinarians 4.00 9.00 44.44 113.61 28,402.26

TOTAL 246.00 589.00 41.77 3,207.95 13,040.44



Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2016 to 31 March 2017

Salary band

Beneficiary Profile Cost Total cost as a % of the total

personnel expenditure


Number of employees

% of total within salary

bands

Total Cost

(R’000)

Average cost per

employee

Band A 1.00 6.00 16.67 36.50 36,498.36 6,457.12

Band B 0.00 5.00 0.00 0.00 0.00 4,725.81

Band C 1.00 1.00 100.00 122.30 122,298.12 1,461.32

Band D 0.00 1.00 0.00 0.00 0.00 1,992.98

Total 2.00 13.00 15.38 158.80 79,398.24 14,637.23

Foreign Workers

Table 3.9.1 foreign workers by salary band for the period 1 April 2016 to 31 March 2017

Salary band 01 April 2016 31 March 2017 Change

Number % of total

Number % of total

Number % Change

Lower skilled

Highly skilled production (Lev. 6-8)

0 0.00 0 0.00 0 0.00

Highly skilled supervision (Lev. 9-12) 5 100.00 10

100.005

100.00

Contract (level 9-12) 0 0.00 0 0.00 0 0.00

Contract (level 13-16) 0 0.00 0 0.00 0 0.00

Total 5 100.00 10 100.00 5 100.00

Table 3.9.2 foreign workers by major occupation for the period 1 April 2016 to 31 March 2017

Major occupation 01 April 2016 31 March 2017 Change

Number % of total

Number % of total

Number % Change

Professionals and Managers 5 100.00 10 100.00 5 100.00

Total 5 100.00 10 100.00 5 100.00

Leave utilization

Table 3.10.1 Sick leave for the period 1 January 2016 to 31 December 2016

Salary band Total days

% Days with Medical

certification

Number of Employees using sick

leave

% of total employees using sick

leave

Average days per employee

Estimated Cost

(R’000)

Skilled (levels 3-5) 1442 67.57 174 44.16 8.28 891.00

Highly skilled production (levels 6-8)

1062 63.09 128 32.49 8.3 1421.00

Highly skilled supervision (levels 9 -12)

555 49.73 61 15.48 9.1 1254.00

Top and Senior management (levels 13-16)

21 61.9 3 .76 7 78.00

Total 3080 62.75 366 92.89 8.1 3644.00



Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2016 to 31 December 2016

Salary band Total days % Days with Medical

certification

Number of Employees

using disability

leave

% of total employees using disability leave

Skilled (Levels 3-5) 0 0 0 0


10 100 1 25


83 100 3 75

Total 93 100 4 100

Table 3.10.3 Annual Leave for the period 1 January 2016 to 31 December 2016

Salary band Total days taken Number of Employees using

annual leave

Average per employee

Skilled Levels 3-5) 5225 253 20.65


4164 201 20.72

Highly skilled supervision(Levels 9-12)

2349 106 22.16

Senior management (Levels 13-16) 209 11 19

Total 11947 571 15.93

Table 3.10.4 Capped leave for the period 1 January 2016 to 31 December 2016

Salary band Total days of capped leave

taken

Number of Employees using

capped leave

Average number of days taken per

employee

Skilled Levels 3-5) 21 7 3


10 5 2

Highly skilled supervision(Levels 9-12)

Total 31 12 2.58

Table 3.10.5 Leave payouts for the period 1 April 2016 to 31 March 2017

Reason Total amount (R’000)

Number of employees

Average per employee

(R’000)

Capped leave payouts on termination of service for 2016/2017

598 13 46 001

Current leave payout on termination of service for 2016/2017

51 5 10 274

Total 649 18 36 077



HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

None

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

X Mrs MM Motaung: Director Human Resource Management

2. Does the department have a dedicated unit or has it designated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

X The unit has 1 employee who deals with the promotion of health and wellbeing of employees.

3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.

X Wellness days and information sessions

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

X The committee was established. (The list of the committee members is attached)

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

X HIV/AIDS, TB and STI management policy

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

X The policy states that employees who discriminate against others shall face disciplinary actions

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.

X The results are still minimum as most of the employees that take part in wellness screenings do not undergo the HCT testing

8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators.

X GEMS reports



Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 2016 to 31 March 2017

Subject matter Date

0

Total number of Collective agreements 0

Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2016 to 31 March 2017

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0

Verbal warning 0

Written warning 0

Final written warning 0

Suspended without pay 3, two were coupled with final written warning

0.49

Fine 0

Demotion 0

Dismissal 3

Not guilty 0

Case withdrawn 0

Total 3 0.49

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2016 to 31 March 2017

Type of misconduct Number % of total

Absenteeism & unauthorised leave 0 0

Gross insubordination 0 0

Multiple misconduct 9 1.48

TOTAL 9 1.48

Table 3.12.4 Grievances logged for the period 1 April 2016 to 31 March 2017

Grievances Number % of Total

Number of grievances resolved 1 0.16

Number of grievances not resolved 0 0

Total number of grievances lodged 1 0.16

Table 3.12.5 Disputes logged with Councils for the period 1 April 2016 to 31 March 2017

Disputes Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 2 0.33

Total number of disputes lodged 2 0.33



Table 3.12.6 Strike actions for the period 1 April 2016 to 31 March 2017

Total number of persons working days lost 0

Total costs working days lost 0

Amount recovered as a result of no work no pay (R’000) 0

Table 3.12.7 Precautionary suspensions for the period 1 April 2016 and 31 March 2017

Number of people suspended 4

Number of people who’s suspension exceeded 30 days

4

Average number of days suspended 90 Days

Cost of suspension(R’000) R232.745.75

Skills development

Table 3.13.1 Training needs identified for the period 1 April 2016 to 31 March 2017


Gender Number of employees

as at 01 April 2016

Training needs identified at start of the reporting period

Learnerships Skills Pro-grammes & other short

courses

Other forms of training

Total


Female 0

Male 0

Professionals Female 0

Male 0


Female 0 45 11 56

Male 0 41 14 55

Clerks Female 3 10 1 11

Male 5 8 8


Female 0

Male 0


Female 11 11

Male 15 15


Female 0

Male 0


Female 0

Male 0

Elementary occupations

Female

Male

Sub Total Female

Male

Total 26 104 26 156



Table 3.13.2 Training provided for the period 1 April 2016 to 31 March 2017


Gender Number of employees

as at 01 April 2016

Training provided within the reporting period

Learner-ships

Skills Programmes & other short

courses

Other forms of training

Total


Female

Male

Professionals Female

Male


Female 4 36 9 49

Male 3 41 6 50

Clerks Female 5 19 3 27

Male 3 8 3 14


Female

Male


Female

Male


Female

Male


Female

Male

Elementary occupations Female

Male

Sub Total Female

Male

Total 15 104 21 140

Injury on duty

Table 3.14.1 Injury on duty for the period 1 April 2016 to 31 March 2017

Nature of injury on duty Number % of total

Required basic medical attention only 7 0.01%

Temporary Total Disablement 7 0.01%

Permanent Disablement 0 0%

Fatal 0 0%

Total 7 0.01%



Utilization of Consultants

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2016 and 31 March 2017

Project title Total number of

consultants that worked on project

Duration (work days)

Contract value in

R’000

Value-adding through aroma and taste profile of rooibos waste material

1 88 320

Assessment - SANAS 1 20 69

Internal Control Environment 1 240 3,216

Provision of programme management, community facilitation and resource mobilisation services

1 720 12,825

Payment of provision of rapid market assessment; marketing & business plan and mentorship services at manyeding

1 240 4,587

Consequence management, compliance and internal control

1 60 483

Provide support to SCM governance 1 240 202

Obtaining of environmental authorisation at sonderwaterkraal and tweerivier, niewoudtville area, northern cape province

1 240 253

Assessment conducted 1 220 4,687

Arc-institute for soil, climate and water research projects 1 1200 802,674

Committee meetings and small-scale fisherman’s workshops

1 1200 3,950


1 720 1,647

Total number of projects Total individual consultants

Duration (work days)

Total contract value in R’000

12 12 5188 33,051

Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017

Project title Percentage ownership by BBBEE

groups

Percentage management

by BBBEE groups

Number of consultants from BBBEE groups that work on the

project

BBBEE Contributor


0.00% 0.00% 0.00% Level 5

Assessment – SANAS Not applicable

Not applicable Not applicable

Not applicable

Internal Control Environment 100.00% 100.00% 100.00% Level 1

Provision of programme management, community facilitation and resource mobilisation services

100.00% 100.00% 100.00% Level 1



Project title Percentage ownership by BBBEE

groups

Percentage management

by BBBEE groups

Number of consultants from BBBEE groups that work on the

project

BBBEE Contributor

Payment of provision of rapid market assessment; marketing & business plan and mentorship services at manyeding

0.00% 0.00% 0.00% Level 4

Consequence management, compliance and internal control

100% 100% 100% Level 1

Provide support to SCM governance 0.00% 0.00% 0.00% Level 4

Obtaining of environmental authorisation at sonderwaterkraal and tweerivier, niewoudtville area, northern cape province

0.00% 0.00% 0.00% Level 4

Assessment conducting 0.00% 0.00% 0.00% Level 4

Arc-institute for soil, climate and water research projects

Not Applicable

Not Applicable Not Applicable

Not Applicable

Committee meetings and small-scale fisherman’s workshops

Not Applicable

Not Applicable Not Applicable

Not Applicable


0.00% 0.00% 0.00% Level 5

Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2016 to 31 March 2017

Salary band Number of applications

received

Number of applications

referred to the MPSA

Number of applications supported by

MPSA

Number of packages

approved by department


0 0 0 0

Skilled Levels 3-5) 0 0 0 0


0 0 0 0


0 0 0 0

Senior management (Levels 13-16)

0 0 0 0

Total 0 0 0 0



Report of the auditor-general to the Northern Cape Provincial Legislature on vote no.12: Department of Agriculture, Land Reform and Rural Development

Report on the audit of the financial statements

1. Opinion

I have audited the financial statements of the Department of Agriculture, Land Reform and Rural Development set out on pages 175 to 257, which comprise the appropriation statement, the statement of financial position as at 31 March 2017, and the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Agriculture, Land Reform and Rural Development as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2016 (Act No. 3 of 2016) (DoRA).

Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of my report.

4. I am independent of the department in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matters

6. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Irregular expenditure

7. As disclosed in note 24 to the financial statements, the department incurred irregular expenditure of R18 994 000 (2016: R37 170 000) during the year under review mainly due to non-compliance with supply chain management (SCM) requirements. The total amount of irregular expenditure recorded in the annual financial statements at 31 March 2017 amounts to R156 488 000 (2016: R130 341 000).



Movable Tangible Capital Assets

8. As disclosed in note 29 to the financial statements, the department disclosed movable tangible capital assets to the value of R23 767 000. This disclosure was done in compliance with the MCS for assets under investigation.

Other matter

9. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Unaudited supplementary schedules

10. The supplementary information set out on pages 258 to 266 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Responsibilities of the accounting officer for the financial statements

11. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the MCS prescribed by National Treasury and the requirements of the PFMA and DoRA and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

12. In preparing the financial statements, the accounting officer is responsible for assessing the Department of Agriculture, Land Reform and Rural Development’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless there is an intention either to liquidate the department or to cease operations, or there is no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

13. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

14. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report.



Report on the audit of the annual performance report

Introduction and scope

15. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

16. My procedures address the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

17. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2017:

Programmes Pages in the annual performance report

Programme 2 – Sustainable Resource Management 46-58

Programme 3 – Farmer Support and Development 60-71

Programme 4 – Veterinary Services 73-88

18. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes:

Programme 2 – Sustainable Resource ManagementProgramme 3 – Farmer Support and DevelopmentProgramme 4 – Veterinary Services

Other matter

19. I draw attention to the matter below.

Achievement of planned targets

20. Refer to the annual performance report on pages 19-127 for information on the achievement of planned targets for the year.



Report on audit of compliance with legislation

Introduction and scope

21. In accordance with the PAA and the general notice issued in terms thereof I have a responsibility to report material findings on the compliance of the department with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

22. The material findings in respect of the compliance criteria for the applicable subject matters are as follows:

Annual financial statements, performance reports and annual reports

23. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(a) of the Public Finance Management Act. Material misstatements of goods and services, transfer payments, expenditure for capital assets and movable capital items identified by the auditors in the submitted financial statement were corrected and/or the supporting records were provided subsequently, resulting in the financial statements receiving an unqualified audit opinion.

Expenditure management

24. Effective steps were not taken to prevent irregular expenditure amounting to R18 994 000 as disclosed in note 24 to the annual financial statements, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1.

25. Effective steps were not taken to prevent fruitless and wasteful expenditure, amounting to R153 000 as disclosed in note 25 of the AFS, as required by section 38(1)(c)(ii) of the Public Finance Management Act and Treasury Regulation 9.1.1.

Procurement and contract management

26. Sufficient appropriate audit evidence could not be obtained that goods and services with a transaction value below R500 000 were procured by means of obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

Other information

27. The Department of Agriculture, Land Reform and Rural Development Accounting Officer is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report thereon and those selected programmes presented in the annual performance report that have been specifically reported on in the auditor’s report.

28. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.



29. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact.

30. I have not yet received the final annual report. When I do receive this information, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected I may have to re-issue my auditor’s report amended as appropriate.

Internal control deficiencies

31. I considered internal control relevant to my audit of the statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for qualified opinion, the findings on compliance with legislation included in this report.

• Leadership did not take appropriate action with regard to a lack of controls in the finance and supply chain management directorates to facilitate the continuous monitoring of internal controls which resulted in misstatements in the Transfer payments, Expenditure for capital assets, Goods and services.

• Leadership did not exercise its oversight responsibility over regular monitoring of compliance with laws and regulations.

• The department did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial reporting.

• Management did not ensure that on-going monitoring and supervision were undertaken to enable an assessment of the effectiveness of internal control over compliance with laws and regulations.

• The department developed a plan to address the audit findings relating to the prior year. The appropriate level of management did not timeously monitor adherence to the plan resulting in the re-occurrence of some of the non-compliance issues and material misstatements corrected in the annual financial statements.



Table of Contents

Appropriation Statement 176

Notes to the Appropriation Statement 214

Statement of Financial Performance 216

Statement of Financial Position 217

Statement of Changes in Net Assets 218

Cash Flow Statement 219

Notes to the Annual Financial Statements (including Accounting policies) 220

Annexures 258



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1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Appropriation

Actual Expenditure

Variance R’000

Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

3 Farmer Support And Development 226,885 212,071 14,814 6.53%

A significant portion of the unspent funds relate to conditional grants that were committed but not spent. Roll-over of funds were requested.

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2017



4.2 Per economic classification Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

Current payments

Compensation of employees 209,689 209,301 388 0.2%

Goods and services 156,110 143,668 12,442 8.0%

Interest and rent on land - 18 (18) 100.00%

Transfers and subsidies

Provinces and municipalities 119 119 - -

Departmental agencies and accounts 34,955 34,955 - -

Households 3,295 3,295 - -

Payments for capital assets

Buildings and other fixed structures 127,176 118,453 8,723 6.86%

Machinery and equipment 20,325 26,764 (6,439) -31.7%

Biological assets 990 990 - -

Software and other Intangible assets 2,546 2,546 - -

The department has reclassified some operating lease expenditure as finance lease expenditure that resulted in the variances noted between Goods and services and Machinery and equipment.

4.3 Per conditional grant Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

DAFF-CASP 129,924 118,314 11,610 8.9%

DAFF-Land Care 9,320 9,306 14 0.2%

DAFF-Ilima/Letsema 55,222 52,022 3,200 5.8%

Public Works-EPWP Incentive Grant 2,000 1,992 8 0.4%

A significant portion of the unspent funds relate to conditional grants that were committed but not spent. Roll-over of these funds were requested.

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2017



Note

2016/17

R’000

2015/16

R’000REVENUE

Annual appropriation 1 555,205 557,947 Departmental revenue 2 401 913

TOTAL REVENUE 555,606 558,860

EXPENDITURE

Current expenditureCompensation of employees 3 209,301 192,575Goods and services 4 155,746 187,407Interest and rent on land 5 18 22

Total current expenditure

365,065 380,004

Transfers and subsidiesTransfers and subsidies 7 5,964 19,968

Total transfers and subsidies 5,964 19,968

Expenditure for capital assetsTangible assets 8 166,534 152,202Intangible assets 8 2,546 1,875

Total expenditure for capital assets 169,080 154,077

Payments for financial assets 6 - 1

TOTAL EXPENDITURE 540,109 554,050

SURPLUS/(DEFICIT) FOR THE YEAR 15,497 4,810

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 15,096 3,897

Annual appropriation 264 2,037

Conditional grants 14,832 1,860

Departmental revenue and NRF Receipts 14 401 913

SURPLUS/(DEFICIT) FOR THE YEAR 15,497 4,810

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2017



Note 2016/17 2015/16

R’000 R’000

ASSETS

Current assets 14,106 3,014

Unauthorised expenditure 9 97 97

Cash and cash equivalents 10 11,233 1,064

Prepayments and advances 11 2,740 561

Receivables 12 36 1,292

Non-current assets 4,196 4,165

Receivables 12 4,196 4,165

TOTAL ASSETS 18,302 7,179

LIABILITIES

Current liabilities 15,559 4,448

Voted funds to be surrendered to the Revenue Fund 13 15,096 3,897

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

14463 326

Payables 15 - 225

Non-current liabilities - -

TOTAL LIABILITIES 15,559 4,448

NET ASSETS 2,743 2,731

Represented by:

Capitalisation reserve 23 23

Recoverable revenue 2,720 2,708

TOTAL 2,743 2,731

STATEMENT OF FINANCIAL POSITION as at 31 March 2017



Note 2016/17 2015/16

R’000 R’000

Capitalisation Reserves

Opening balance 23 23

Transfers: - -

Movement in Equity - -

Movement in Operational Funds - -

Other movements - -

Closing balance 23 23

Recoverable revenue

Opening balance 2,708 2,697

Transfers: 12 11

Debts revised 12 11

Debts recovered (included in departmental receipts) - -

Debts raised - -

Closing balance 2,720 2,708

TOTAL 2,743 2,731

STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2017



2016/17 2015/16

Note R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 558,269 560,915

Annual appropriated funds received 1.1 555,205 577,947

Departmental revenue received 2 3,064 2,968

Net (increase)/decrease in working capital (1,179) (946)

Surrendered to Revenue Fund (7,472) (10,678)

Current payments (365,047) (379,982)

Interest paid 4 (18) (22)

Payments for financial assets - (1)

Transfers and subsidies paid (5,964) (19,968)

Net cash flow available from operating activities 16 178,589 149,318

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (169,080) (154,077)

Proceeds from sale of capital assets 2.3 648 -

Net cash flows from investing activities (168,432) (154,077)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets 12 11

Increase/(decrease) in non-current payables - -

Net cash flows from financing activities 12 11

Net increase/(decrease) in cash and cash equivalents 10,169 (4,748)

Cash and cash equivalents at beginning of period 1,064 5,812

Cash and cash equivalents at end of period 17 11,233 1,064

CASH FLOW STATEMENT for the year ended 31 March 2017



Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern

The financial statements have been prepared on a going concern basis.

3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparative information

6.1 Prior period comparative information

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

ACCOUNTING POLICIES for the year ended 31 March 2017



6.2 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

7 Revenue

7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and

• the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

Write-offs are made according to the department’s debt write-off policy

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the date of payment.

Wages paid to departmental projects are recognised in the statement of financial performance on the date of payment to the project.




8.1.2 Social contributions

Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

8.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accruals and payables not recognised

Accruals and payables not recognised are recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department or in the case of transfers and subsidies when they are due and payable.

Accruals and payables not recognised are measured at cost.

8.4 Leases

8.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment.

The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

• cost, being the fair value of the asset; or

• the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.




9 Aid Assistance

9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

10 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position as a current liability.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

11 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

12 Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.

13 Investments

Investments are recognised in the statement of financial position at cost.




14 Financial assets

14.1 Financial assets (not covered elsewhere)

A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial.

At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

14.2 Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

15 Payables

Loans and payables are recognised in the statement of financial position at cost, where applicable.

16 Capital Assets

16.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined reliably, the immovable capital assets are measured at fair value for recording in the asset register.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.




16.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Biological assets are subsequently carried at fair value. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

16.3 Intangible assets

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.

Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

17 Provisions and Contingents

17.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.




17.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

17.3 Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department.

17.4 Commitments

Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.

18 Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

• approved by Parliament or the Provincial Legislature with funding and the related funds are received; or

• approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or

• transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.




20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting policies, accounting estimates and errors

Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

Changes in accounting estimates are applied prospectively in accordance with MCS requirements.

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

22 Events after the reporting date

Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

23 Principal-Agent arrangements

The department not have any principal-agent arrangements.

24 Departures from the MCS requirements

Management concluded that the financial statements present fairly the department’s primary and secondary information. The department complied with the Modified Cash Standard in the preparation of the Annual Financial Statements.

25 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.




26 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

27 Related party transactions

A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length.

Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

28 Inventories (Effective from date determined in a Treasury Instruction)

At the date of acquisition, inventories are recorded at cost price in the statement of financial performance.

Where inventories are acquired as part of a non-exchange transaction, the cost of inventory is its fair value at the date of acquisition.

Inventories are subsequently measured at the lower of cost and net realisable value or the lower of cost and current replacement value.

Subsequent measurement of the cost of inventory is determined on the weighted average basis.

29 Public-Private Partnerships

Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies.

A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.

30 Employee benefits

The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.




1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2016/17 2015/16

Final Appropria-

tion

Actual Funds

Received

Funds not requested/

not re-ceived

Final Ap-propriation

Appro-priation

received

R’000 R’000 R’000 R’000 R’000

Administration 118,608 118,608 - 106,491 106,491

Sustainable Resource development

95,698 95,698 - 97,500 97,500


226,885 226,885 - 245,596 245,596

Veterinary Services 44,659 44,659 - 43,017 43,017

Research& Development 46,656 46,656 - 43,308 43,308


9,061 9,061 - 9,119 9,119

Rural Development 13,638 13,638 - 12,916 12,916

Total 555,205 555,205 - 557,947 557,947

1.2 Conditional grants

2016/17 2015/16

Note R’000 R’000

Total grants received 34 196,466 214,530

2. Departmental revenue

2017/16 2015/16

Note R’000 R’000

Tax revenue

Sales of goods and services other than capital assets 2.1 2,838 2,820

Interest, dividends and rent on land 2.2 5 9

Sales of capital assets 2.3 648 -

Transactions in financial assets and liabilities 2.4 221 139

Total revenue collected 3,712 2,968

Less: Own revenue included in appropriation 14 3,311 2,055

Departmental revenue collected 401 913

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2017



2.1 Sales of goods and services other than capital assets

2016/17 2015/16

Note R’000 R’000

Sales of goods and services produced by the department 2 2,838 2,820

Sales by market establishment 613 580

Administrative fees 171 75

Other sales 2,054 2,165

Total 2,838 2,820

Other sales include sales of animals, dates, commission on insurance and garnishees.

2.2 Interest, dividends and rent on land

2016/17 2015/16

Note R’000 R’000

Rent on land 2 5 9

Total 5 9

2.3 Sale of capital assets

2016/17 2015/16

Note R’000 R’000

Tangible assets 2 648

Machinery and equipment 30.2 648 -

Biological assets 30 - -

Intangible assets - -

Total 648 -

2.4 Transactions in financial assets and liabilities

2016/17 2015/16

Note R’000 R’000

Receivables 2 77 120

Stale cheques written back 2 144 19

Total 221 139




2.5 Cash received not recognised (not included in the main note)

2016/17

Name of entity Amount received

Amount paid to the

revenue fund

Balance

R’000 R’000 R’000

Individual - - -

Total - - -

2015/16

Name of entity Amount received

Amount paid to the

revenue fund

Balance

R’000 R’000 R’000

Individual 26 - 26

Total 26 - 26

2015/16 - Cash received from individuals for sale dates

3. Compensation of employees

3.1 Salaries and Wages

2016/17 2015/16

R’000 R’000

Basic salary 143,935 133,099

Performance award 3,278 2,485

Service Based 381 169

Compensative/circumstantial 2,296 1,622

Periodic payments 393 187

Other non-pensionable allowances 29,841 27,780

Total 180,124 165,342

3.2 Social contributions

2016/17 2015/16

R’000 R’000

Employer contributions

Pension 17,616 16,369

Medical 11,517 10,822

Bargaining council 44 42

Total 29,177 27,233

Total compensation of employees 209,301 192,575

Average number of employees 586 605




4. Goods and services

2016/17 2015/16Note R’000 R’000

Administrative fees 2,677 1,947Advertising 695 1,656Minor assets 4.1 372 1,858Bursaries (employees) 645 900Catering 2,087 2,488Communication 3,000 3,308Computer services 4.2 2,207 2,203Consultants: Business and advisory services 10,231 6,398Infrastructure and planning services 750 15,709Laboratory services 975 1,696Legal services 369 365Contractors 13,225 16,370Agency and support / outsourced services 3,240 1,350Audit cost – external 4.3 4,679 4,598Fleet services 8,491 5,118Inventory 4.4 34,452 65,760Consumables 4.5 5,144 3,885Operating leases 10,498 11,046Property payments 4.6 11,074 8,681Rental and hiring 446 238Travel and subsistence 4.7 33,617 28,476Venues and facilities 3,646 752Training and development 1,363 1,584Other operating expenditure 4.8 1,863 1,621Total 155,746 187,407

4.1 Minor assets

2016/17 2015/16Note R’000 R’000

Tangible assets 4 372 1,253 Biological assets - 691 Machinery and equipment 372 562Intangible assets - 5 Software - 5Total 372 1,258

4.2 Computer services

2016/17 2015/16Note R’000 R’000

SITA computer services 1,458 1,739External computer service providers 794 464Total 4 2,207 2,203




4.3 Audit cost – External

2016/17 2015/16Note R’000 R’000

Regularity audits 4 4,679 4,598Total 4,679 4,598

4.4 Inventory

Note 2016/17 2015/164 R’000 R’000

Clothing material and accessories - 615Farming supplies 18,451 35,777Food and food supplies - 86Fuel, oil and gas 2,970 3,731Materials and supplies 1,905 9,053Medical supplies 41 31Medicine 502 395Other supplies 4.4.1 10,583 16,072Total 34,452 65,760

4.4.1 Other supplies

2016/17 2015/16Note R’000 R’000

Assets for distribution 10,499 16,029 Other assets for distribution 10,499 16,029Other 4.4 84 43Total 10,583 16,072

Other include cleaning, security and gardening service at Research station.Other assets for distribution refers to expenditure on departmental projects

4.5 Consumables

2016/17 2016/15Note R’000 R’000

Consumable supplies 4 3,832 2,062 Uniform and clothing 469 189 Household supplies 1,075 1,588 Other consumables 2,288 285Stationery, printing and office supplies 4 1,312 1,823Total 5,144 3,885

4.6 Property payments

2016/17 2015/16Note R’000 R’000

Municipal services 4 10,012 7,662Other 4 1,062 1,019Total 11,074 8,681




4.7 Travel and subsistence

2016/17 2015/16

Note R’000 R’000

Local 4 33,205 26,909

Foreign 4 412 1,567

Total 33,617 28,476

4.8 Other operating expenditure

Note 2016/17 2015/16

4 R’000 R’000

Professional bodies, membership and subscription fees 140 21

Resettlement costs 3 76

Other 1,720 1,524

Total 1,863 1,621

5. Interest and rent on land

2016/17 2015/16

R’000 R’000

Interest paid 18 22

Total 18 22

6. Payments for financial assets

2016/17 2015/16

Note R’000 R’000

Material losses through criminal conduct - 1

Theft - -

Other material losses 6.1 - 1

Total - 1

6.1 Other material losses

2016/17 2015/16

Note R’000 R’000

Nature of other material losses

Incident Disciplinary Steps taken/ Criminal proceedings

Unpaid cheque 6 - 1

Total - 1




7. Transfers and subsidies

2016/17 2015/16

R’000 R’000

Note

Provinces and municipalities 119 54

Departmental agencies and accounts Annex 1A 2,550 3,054

Public corporations and private enterprises Annex 1B - 10,415

Non-profit institutions Annex 1C - 157

Households Annex 1D 3,295 6,288

Total 5,964 19,968

Unspent funds transferred to the above beneficiaries

Departmental agencies and accounts 4,688 13,353

Total 4,688 13,353

Unspent funds:2015/16R13 350 000 relate to NAMCR3 000 relate to KKC2016/17R4 688 000 relate to NAMCExpenditure for capital assets

2016/17 2015/16

Note R’000 R’000

Tangible assets 166,534 152,202

Buildings and other fixed structures 32.1 153,872 141,381

Machinery and equipment 30.1 11,672 10,192

Biological assets 30.1 990 692

Intangible assets 2,546 1,875

Software 31.1 2,546 1,875

Total 169,080 154,077




8.1 Analysis of funds utilised to acquire capital assets – 2016/17

Voted funds Total

R’000 R’000


Buildings and other fixed structures 153,872 153,872

Machinery and equipment 11,672 11,672

Biological assets 990 990


Software 2,546 2,546

Total 169,080 169,080

8.2 Analysis of funds utilised to acquire capital assets – 2015/16

Voted funds Total

R’000 R’000


Buildings and other fixed structures 141,318 141,318


Biological assets 692 692


Software 1,875 1,875

Total 154,077 154,077

Note 8.2 & 8.3: Capital acquisitions include expenditure on departmental projects in execution of the mandate of the department.

8.3 Finance lease expenditure included in Expenditure for capital assets

2016/17 2015/16

Note R’000 R’000

Tangible assets


Total 7,725 8,783

The following operating lease expenditure payments have been reclassified as capital lease expenditure: Cell phone leases, White fleet and Photo copier machines




9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure

2016/17 2015/16

Note R’000 R’000

Opening balance 9.2 97 97

Prior period error - -

As restated 97 97

Unauthorised expenditure – discovered in current year (as restated) - -

Less: Amounts transferred to receivables for recovery - -


Analysis of awaiting authorisation per economic classification

Capital

Current 97 97

Transfers and subsidies 97 97

Total

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

2016/17 2015/16

Note R’000 R’000

Current 9.1 97 97

Total 97 97

9.3 Analysis of unauthorised expenditure awaiting authorisation per type

2016/17 2015/16

R’000 R’000

Unauthorised expenditure relating to overspending of the vote or a main division within a vote 97 97

Total 97 97

10. Cash and cash equivalents

2016/17 2015/16

R’000 R’000

Consolidated Paymaster General Account 11,173 1,050

Cash on hand 60 14

Total 11,233 1,064




11. Prepayments and advances

2016/17 2015/16

Note R’000 R’000

Travel and subsistence 36 (1)

Prepayments (Not expensed) 11.1 2,704 562

Total 2,740 561

11.1 Prepayments (Not expensed)

2016/17 2015/16

Note R’000 R’000

Other 11 2,704 562

Total 2,704 562

Advance payments were made in the execution of the department’s mandate. Advances made primarily for wages and transport costs.

12. Receivables

2016/17 2015/16

Current Non-current

Total Current Non-current

Total

Note R’000 R’000 R’000 R’000 R’000 R’000

Claims recoverable 12.1 24 - 24 1,161 - 1,161

Recoverable expenditure 12.2 - - - 123 299 422

Other debtors 12.3 12 4,196 4,208 8 3,866 3,874

Total 36 4,196 4,232 1,292 4,165 5,457

12.1 Claims recoverable

2016/17 2015/16

Note R’000 R’000

National departments 12 & Annex 4 24 654

Provincial departments - 487

Private enterprises - 20

Total 24 1,161

12.2 Recoverable expenditure (disallowance accounts)

2016/17 2015/16

Note R’000 R’000

Disallowance Miscellaneous 12 - 422

Total - 422




12.3 Other debtors

2016/17 2015/16

Note R’000 R’000

Debt Account 4,188 3,858

Tax debt 12 3

Claims recoverable 8 8

Receipt Deposit control Account - 2

Income Tax - 3

Total 12 4,208 3,874

13. Voted funds to be surrendered to the Revenue Fund

2016/17 2015/16

Note R’000 R’000


Prior period error 13.1 - -

As restated 3,897 7,264

Transfer from statement of financial performance (as restated)

15,096 3,849

Add: Unauthorised expenditure for current year - -

Paid during the year (3,897) (7,264)


14. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

2016/17 2015/16

Note R’000 R’000


Prior period error - -

As restated 326 722

Transfer from Statement of Financial Performance (as restated)

401 913

Own revenue included in appropriation 2 3,311 2,055

Paid during the year (3,575) (3,414)


15. Payables – current

2016/17 2015/16

Note R’000 R’000

Clearing accounts 15.1 - 255

Other payables 15.2 - -

Total - 225




15.1 Clearing accounts

2016/17 2015/16

Note R’000 R’000

Description

CETA 15 - 225

Total - 225

16. Net cash flow available from operating activities

2016/17 2015/16

R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 15,497 4,810

Add back non cash/cash movements not deemed operating activities 163,092 144,508

(Increase)/decrease in receivables – current 1,225 (610)

(Increase)/decrease in prepayments and advances (2,179) (561)

Increase/(decrease) in payables – current (225) 225

Proceeds from sale of capital assets (648) -

Expenditure on capital assets 169,080 154,077

Surrenders to Revenue Fund (7,472) (10,678)

Own revenue included in appropriation 3,311 2,055

Net cash flow generated by operating activities 178,589 149,318

17. Reconciliation of cash and cash equivalents for cash flow purposes

2016/17 2015/16

R’000 R’000

Consolidated Paymaster General account 11,173 1,050

Cash on hand 60 14

Total 11,233 1,064

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities

2016/17 2015/16

Note R’000 R’000

Liable to Nature

Claims against the department Annex 3A 3,197 2,907

Intergovernmental payables (unconfirmed balances) Annex 5 5 -

Total 3,202 2,907




18.2 Contingent assets

2016/17 2015/16

R’000 R’000

Nature of contingent asset

Department vs Martin: Application for Eviction 500 500

Total 500 500

19. Commitments

2016/17 2015/16

R’000 R’000

Current expenditure 18,825 30,896

Approved and contracted 18,825 30,896

Capital expenditure 11,667 9,874

Approved and contracted 11,667 9,874

Total Commitments 30,492 40,770

The department has a three year contract with a service provider relating to the provision of programme management, community facilitation and resources mobilization services amounting to R12,824,814. The contract is currently in the first year of implementation.

20. Accruals and payables not recognised

20.1 Accruals

2016/17 2015/16

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 3,817 1,998 5,815 11,007

Capital assets 1,817 3,026 4,843 8,381

Total 5,634 5,024 10,658 19,388

2016/17 2015/16

R’000 R’000

Listed by programme level

Administration



Veterinary services

Technological Research & development

Agricultural economics

Rural Development & Farmer Settlement

4,906

250

4,237

1,158

37

20

50

8,311

5,887

4,776

169

138

107

-

Total 10,658 19,388




20.2 Payables not recognised

2016/17 2015/16

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services - 5,664 5,664 1,734

Capital assets - 6,569 6,569 1,798

Total - 12,233 12,233 3,532

2016/17 2015/16

R’000 R’000

Listed by programme level

Administration



Veterinary services

Technological Research & development

Agricultural Economics

Rural Development & Farmer Settlement

3,191

280

8,053

78

586

12

33

455

1,438

1,022

331

263

-

23

Total 12,233 3,532

2016/17 2015/16

Included in the above totals are the following: Note R’000 R’000

Confirmed balances with other departments Annex 5 1,390 3,093

Confirmed balances with other government entities Annex 5 197 432

Total 1,587 3,525

21. Employee benefits

2016/17 2015/16

R’000 R’000

Leave entitlement 9,459 7,439

Service bonus (Thirteenth cheque) 5,789 5,439

Performance awards 3,219 3,025

Capped leave commitments 4,640 5,044

Other 9 195

Total 23,116 21,142

1.Other is long service awarded to officials working more than 15 years in Government.

2.Included in the leave entitlement amount is the amount for negative leave credits to the total amount R 169,486.48




22. Lease commitments

22.1 Operating leases expenditure

2016/17

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year 937 342 1,279

Later than 1 year and not later than 5 years 195 - 195

Later than five years - - -

Total lease commitments 1,132 342 1,474

2015/16

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year 4,108 341 4,449

Later than 1 year and not later than 5 years 1,132 - 1,132


Total lease commitments 5,240 341 5,581

Contract with Steiner for toiletry services expired in December 2016.

22.2 Finance leases expenditure

2016/17

Machinery and

equipment Total

Not later than 1 year 3,384 3,384

Later than 1 year and not later than 5 years 4,990 4,990

Later than five years - -

Total lease commitments 8,374 8,374

2015/16

Machinery and

equipment Total

Not later than 1 year 3,557 3,557

Later than 1 year and not later than 5 years 2,290 2,290

Later than five years - -

Total lease commitments 5,847 5,847

The finance lease commitment include motor vehicles that the department leased from Fleet Trading entity.(White fleet)




22.3 Operating lease revenue

2016/17

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year - - -

Later than 1 year and not later than 5 years - - -


Total operating lease revenue receivable - - -

2015/16

Buildings and other

fixed structures

Machinery and

equipment Total

Not later than 1 year 75 - 75

Later than 1 year and not later than 5 years - - -


Total operating lease revenue receivable 75 - 75

Madeira contract expired in December 2016 currently the contract has been entered on a month to month with the department

23. Accrued departmental revenue

2016/17 2015/16

Note R’000 R’000

Sales of capital assets 23.1 650 650

Other - -

Total 650 650

23.1 Analysis of accrued departmental revenue

2016/17 2015/16

Note R’000 R’000

Opening balance 23 650 650

Less: amounts received - -

Add: amounts recognised - -

Less: amounts written-off/reversed as irrecoverable - -


The R0.650 million disclosed as received, was a non-cash transaction, refer to Annexure 1E

The department entered into a non-cash Swap agreement for Veterinary Mobile clinic procurement in 2013/14 financial year. During the year under review the transaction has been concluded upon receipt of the Mobile clinic.




24. Irregular expenditure

24.1 Reconciliation of irregular expenditure

2016/17 2015/16

R’000 R’000


Prior period error -

As restated 130,341 22,030

Add: Irregular expenditure – relating to prior year 7,153 71,141

Add: Irregular expenditure – relating to current year 18,994 37,170

Less: Prior year amounts condoned - -

Less: Current year amounts condoned - -

Less: Amounts not condoned and recoverable - -

Less: Amounts not condoned and not recoverable - -

Closing balance 156 488 130,341

Analysis of awaiting condonation per age classification

Current year 18,994 37,170

Prior years 137 494 93,171

Total 156 488 130,341

24.2 Details of irregular expenditure – added current year (relating to current and prior years)

Incident Disciplinary steps taken/criminal proceedings

2016/17

R’000

None compliance with Practice Note 8 of 2007/08

Investigations are still in process as these follow instruction letters and training provided as corrective and preventative measure in the current year.

1,353

Non- Compliance with section 44 of PFMA 145

None Compliance with Practice Note 6 of 2007/2008 paragraph 2.3I 7,009

None Compliance with Practice Note 4A of 2016/17 par 3.4. 23

None compliance with TR 16A 9.1 and Practice Note 8 of 2007/08 905

None Compliance with TR16A6.5 222

None Compliance with TR16A6.3[b] 1,379

None Compliance with TR16A6.3[c] 7,958

Total 18,994




25. Fruitless and wasteful expenditure

25.1 Reconciliation of fruitless and wasteful expenditure

2016/17 2015/16

R’000 R’000


Prior period error

As restated 2,680 2,618

Fruitless and wasteful expenditure – relating to prior year - -

Fruitless and wasteful expenditure – relating to current year 153 62

Less: Amounts resolved - -

Less: Amounts transferred to receivables for recovery - -


25.2 Analysis of awaiting resolution per economic classification

2016/17 2015/16

R’000 R’000

Current 818 665

Capital 1993 1,993

Transfers and subsidies 22 22

Total 2,816 2,680

25.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings

2016/17

R’000

Interest on overdue account Investigations are in process 6

Cancellation cost Investigations are in process 12

Traffic fines Investigations are in process 1

Accident costs – damage to vehicles Investigations are in process 116

Accommodation: No show Investigations are in process 18

Total 153

26. Related party transactions

Payments made 2016/17 2015/16

Note R’000 R’000

Transfers Annex 1B - 10,415

Total - 10,415

Related party relationships:

Kalahari Kid Corporation (Public Entity falling under the control of the MEC)

Nieuwoudtville Rooibos (PTY) Ltd




27. Key management personnel

No. of Individuals 2016/17 2015/16

R’000 R’000

Political office bearers (provide detail below) 1 1,902 1,902

Officials:

Level 15 to 16 1 1,659 1,458

Level 14 (incl. CFO if at a lower level) 5 5,489 5,365

Family members of key management personnel - -

Total 9,050 8,725

28. Provisions

2016/17 2015/16

Note R’000 R’000

Microsoft 28.1 - 164

Total - 164

28.1 Reconciliation of movement in provisions – 2016/17

Microsoft Licence

Total provisions

R’000 R’000

Opening balance - 164

Increase in provision - -

Settlement of provision - -

Unused amount reversed - -

Reimbursement expected from third party - -

Closing balance - 164

Reconciliation of movement in provisions – 2015/16

Microsoft Licence

Total provisions

R’000 R’000


Increase in provision - -

Settlement of provision - -

Unused amount reversed - -

Reimbursement expected from third party - -

Change in provision due to change in estimation of inputs - -





29. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 94,118 11,695 4,439 17,048 93,204

Transport assets 44,548 1,237 1,457 2,633 44,609

Computer equipment 16,582 2,321 751 408 19,246

Furniture and office equipment 13,754 3,051 979 175 17,609

Other machinery and equipment 19,234 5,086 1,252 13,832 11,740

BIOLOGICAL ASSETS 2,450 - 990 129 3,311

Biological assets 2,450 - 990 129 3,311

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 96,568 11,695 5,429 17,177 96,515

Movable Tangible Capital Assets under investigation

Number Value

R’000

Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:

Machinery and equipment

Biological assets

1,866

48

22,555

1,212

Movable assets under investigation amounting to R21 million of the previous year was investigated and decreased to R14 Million. Assets amounting to R 7 million was verified. The investigation is still underway. During the current year an additional amount of R9,2 Million is considered under investigation.




29.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 11,703 - (7,725) 461 4,439Transport assets 5,896 - (4,439) - 1,457Computer equipment 737 - - 14 751Furniture and office equipment 643 - - 336 979Other machinery and equipment 4,427 - (3,286) 111 1,252

BIOLOGICAL ASSETS 990 - - - 990Biological assets 990 - - - 990

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 12,693 - (7,725) 461 5,429

29.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Sold for cash

Non-cash disposal

Total disposals

Cash Received

ActualR’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 1,012 16,036 17,048 648Transport assets 1,012 1,621 2,633 648Computer equipment - 408 408 -Furniture and office equipment - 175 175 -Other machinery and equipment - 13,832 13,832 -

BIOLOGICAL ASSETS 115 14 129Biological assets 115 14 129 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 1,127 16,050 17,177 648




29.3 Movement for 2015/16

MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 103,396 (1,245) 12,603 20,636 94,118

Transport assets 37,223 (47) 7,975 603 44,548

Computer equipment 17,203 (899) 427 149 16,582

Furniture and office equipment 13,798 (145) 129 28 13,754

Other machinery and equipment 35,172 (154) 4,072 19,856 19,432

BIOLOGICAL ASSETS 3,216 27 930 1,723 2,450

Biological assets 3,216 27 930 1,723 2,450

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 106,612 (1,218) 13,533 22,359 96,586

29.3.1 Prior period error

2015/16

Note R’000

Nature of prior period error

Relating to 2015/16 [affecting the opening balance] (1,218)

Machinery and equipment (1,245)

Biological Assets 27

Total prior period errors (1,218)

Duplicates; Items tagged more than once; Items not supposed to be recognised as assets; assets not in asset register but should have been included.




29.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2017

Intangible assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000

Opening balance 306 2,420 8,257 10,983Value Adjustment (12) (51) (63)Additions - 372 1,218 1,590Disposals - 141 1,113 1,254TOTAL MINOR ASSETS 306 2,639 8,311 11,256

Intangible assets

Machinery and

equipment

Biological assets

Total

Number of R1 minor assets

Number of minor asset at cost

-

-

9,710

1,280

-

5,096

9,710

6,376

TOTAL NUMBER OF MINOR ASSETS - 10,990 5,096 16,086

Minor Capital Assets under investigationNumber Value

R’000Included in the above total of the minor capital assets per the asset register are assets that are under investigation:Machinery and equipment 1 1Biological assets 2,186 2,725

Biological assets that were included in the register, but could not be verified. The R1000 is for immovable assets could not be verified.

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016

Intangible assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000

Opening balance 301 1,180 7,387 8,868Value adjustments - - - -Additions 5 1,252 2,761 4,018Disposals - 310 3,006 3,316TOTAL MINOR ASSETS 306 2,122 7,142 9,570




Intangible assets

Machinery and

equipment

Biological assets

Total

Number of R1 minor assets - 7,536 - 7,536Number of minor assets at cost 306 8,817 7,748 16,871TOTAL NUMBER OF MINOR ASSETS 306 16,353 7,748 24,407


2016/17Note R’000

Nature of prior period errorRelating to 2015/16 [affecting the opening balance] 2,297Software and Intangible Assets (56)Biological Assets 3,853Machinery and equipment (1,500)Total prior period errors 2,297

This relates to theft of various minor assets (assets with values below R5,000) which were not deducted from the asset register.

29.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2017

Intangible assets

Machinery and

equipment Biological

assets Total R’000 R’000 R’000 R’000

Assets written off - - - -TOTAL MOVABLE ASSETS WRITTEN OFF - - - -

29.6 S42 Movable Capital Assets

MINOR ASSETS SUBJECTED TO TRANSFER IN TERMS OF S42 OF THE PFMA – 31 MARCH 2016

Machinery and equipment Total

No of Assets 243 243 Value of the asset (R’000) 795 795

30. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments


R’000 R’000 R’000 R’000 R’000

SOFTWARE 3,069 - 2,546 - 5,615

TOTAL INTANGIBLE CAPITAL ASSETS 3,069 - 2,546 - 5,615




30.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-Cash (Develop-ment work

in progress – current

costs)

Received current

year, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

SOFTWARE 2,546 - - - 2,546

TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 2,546 - - - 2,546

30.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Sold for cash

Non-cash disposal

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000

SOFTWARE - - - -

TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS - - - -


MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

SOFTWARE 6,368 - 1,875 5,174 3,069

TOTAL INTANGIBLE CAPITAL ASSETS 6,368 - 1,875 5,174 3,069





Note 2015/16

R’000

Nature of prior period error

Relating to 2015/16 (2,852)

Microsoft licences that expired in prior years (2,852)

Total prior period errors (2,852)

31. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments


R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 34,713 - 159,656 - 194,455

Other Fixed structures 34,713 - 159,656 - 194,369

Non-residential buildings - 86 - - 86

Capital Work in Progress 153,862 117,662 36,200

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 34,713 86 313,518 117,662 230,655

31.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not

paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES - - 153,862 5,794 159,656

Other fixed structures - - 153,862 5,794 159,656

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS - - 153,862 5,794 159,656




31.2 DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Sold for cash

Non-cash disposal

Total disposals

Cash received

Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - - - -

Other fixed structures - - - -

TOTAL DISPOSAL OF IMMOVABLE TANGIBLE CAPITAL ASSETS

-

-

-

-


MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Prior period

error


R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 2,860 - 141,318 109,465

34,713

Other fixed structures 2,860 - 141,318 109,465 34,713

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 2,860 - 141,318 109,465 34,713

32. Prior period errors

32.1 Correction of prior period errors

Note 2015/16

R’000

Expenditure:

Goods and Services 4 (8,783)

Payments for capital assets 4 8,783

Net effect -

The department has reclassified some operating lease expenditure as finance lease expenditure that resulted in the variances noted between Goods and services and Machinery and equipment.




Note 2015/16

R’000

Assets:

Machinery and equipment 29.3.1 (1,320)

Software and intangible assets - minor 29.4.1 (56)

Biological assets – minor 29.4.1 3,853

Machinery and equipment 29.4.1 (1,500)

Intangible assets 30.3.1 (2,852)

Net effect (2,875)

Duplicates; Items tagged more than once; Items not supposed to be recognised as assets; assets not in asset register but should have been included.

This relates to thefts of various minor assets (assets with values below R5,000) which were not deducted from the asset register.

Microsoft licences that expired in prior years.

33. Inventory

2016/17 2015/16

Note R’000 R’000

Opening balance Annexure 6 1,249 34,486

Add/(Less): Adjustments to prior year balances - (34,486)

Add: Additions/Purchases - Cash Annexure 6 23,954 62,109

Add: Additions - Non-cash - -

(Less): Disposals - -

(Less): Issues Annexure 6 (18,877) (60,860)

Add/(Less): Adjustments - -





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ANNEXURE 6

INVENTORIES

Inventory Note Quantity 2016/17 Quantity 2015/16

R’000 R’000

Opening balance - 1,249 34.486

Add/(Less): Adjustments to prior year balance

- - (34,486)

Add: Additions/Purchases - Cash 45,363 23,954 49,731

Add: Additions - Non-cash - - -

(Less): Disposals - - -

(Less): Issues (4,601) (18,877) (48,482)

Add/(Less): Adjustments - - -

Closing balance 40,762 6,326 1,249

Quantities comprise several different units of measurement such as litres, kilograms, boxes, bags etc. and thus could not be assimilated.

ANNEXURE 7

MOVEMENT IN CAPITAL WORK IN PROGRESS

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Current Year

Capital WIPCompleted

AssetsClosing balance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

153,862 (117,662) 36,200

Other fixed structures 153,862 (117,662) 36,200

Age analysis on ongoing projects

Number of projects 2016/17

Planned, Construction not started

Planned, Construction

startedTotal

R’000

0 to 1 Year 28 123,098

3 to 5 Years 10 30,764

Total 38 153,862

ANEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2017

Annual Report2016 / 2017

Northern Cape Department of Agriculture, Land Reform & Rural Development

Annual Report 2016/2017

PR118/2017ISBN: 978-0-621-45378-2

Dep

artment of A

griculture, Land R

eform &

Rural D

evelopm

entN

orthern Cap

e Province Vote 12

Annual R

epo

rt 2016/2017

Designed & printed by SwiftPrint, Tel: 053 839 2900, Kimberley

Annual Report - Provincial Government of South Africa

Documents

Transcript of Annual Report - Provincial Government of South Africa