DEPARTMENT OF MINERALS AND ENERGY - Parliamentary ...

DEPARTMENT OF MINERALS AND ENERGY

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RT 2009/10 Annual Report

2009/2010

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DEPARTMENT OF MINERALS AND ENERGY

The Honourable D Peters, MP The Honourable S Shabangu, MPMinister of Energy Minister of Mineral Resources

Ministers, I present to you the Department of Minerals and Energy’s last annual report.

--------------------------------------------Adv Sandile NogxinaDirector General

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1. GENERAL INFORMATION 4 Vision and Mission 5 Legislative Mandate 5 Public Entities Reporting to the Minister of Minerals and Energy 6 Director General’s Overview 8 Departmental Publications and Key Documents 10 Message from the Ministers 12 Information on the Ministries 16

2. PROGRAMME PERFORMANCE 17 Programme Overview 18 Strategic Overview and Key Policy Developments for 2009/10 Financial Year 18 Overview of Service Delivery and Organisation Development 22 Programme 1: Administration 30 Programme 2: Promotion of Mine Health and Safety 66 Programme 3: Mineral Regulation 76 Programme 4: Mineral Policy and Promotion 83 Programme 5: Hydrocarbons and Energy Planning 93 Programme 6: Electricity and Nuclear 111 Programme 7: Associated Services 125

TABLE OF CONTENTS

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3. REPORT OF THE AUDIT COMMITTEE 136

4. ANNUAL FINANCIAL STATEMENTS 138 Report of the Accounting Officer 141 Report of the Auditor-General 149 Appropriation Statement 153 Notes to the Appropriation Statement 162 Statement of Financial Performance 165 Statement of Financial Position 166 Statement of Changes in Net Assets 167 Cash Flow Statement 168 Notes to the Annual Financial Statements 169 Disclosure Notes to the Annual Financial Statements 187 Annexures 196

5. HUMAN RESOURCE MANAGEMENT 214

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GENERAL INFORMATION

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VISION

World-class minerals and energy sectors through sustainable development.

MISSION

To regulate and promote the minerals and energy sectors for the benefit of all.

LEGISLATIVE MANDATE

The provision of services for the effective transformation and governance of minerals and energy industries for economic growth and development, thereby improving the quality of life.

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PUBLIC ENTITIES REPORTING TO THE MINISTER OF MINERALS AND ENERGY

1. The Mine Health and Safety Council (MHSC), established in terms of Section 42(1) of the Mine Health and Safety Act, 29 of 1996, to advise the Minister of Minerals and Energy on health and safety at the mines, promote a culture of health and safety in the mining industry and annually consider an overall programme for relevant health and safety research.

2. The Council for Mineral Technology Research (Mintek), established in terms of the Mineral Technology Act, 30 of 1989, to provide research, development and technology that foster the development of businesses in the mineral and mineral products industries.

3. The Council for Geoscience (CGS), established in terms of the Geoscience Act, 100 of 1993, to systematically develop and maintain the national geosciences knowledge infrastructure for the onshore (land) and offshore (oceans) environment of South Africa.

4. The National Energy Regulator of South Africa (NERSA) derives its mandate from the National Energy Regulator Act, 40 of 2004, which establishes NERSA as the competent authority for electricity regulation (in terms of the Electricity Regulation Act, 4 of 2006), gas regulation (in terms of the Gas Act, 48 0f 2001) and petroleum pipelines regulation (in terms of Petroleum Pipelines Act, 60 of 2003) in South Africa. NERSA derives its revenues from imposing prescribed levies on regulated industries. The following Acts govern these levies:

• Gas Regulator Levies Act, 75 of 2002 • Petroleum Pipelines Levies Act, 28 of 2004, and Section 5B of the Electricity Act, 41 of 1987.

5. The National Nuclear Regulator (NNR), established in terms of the National Nuclear Regulator Act, 47 of 1999, to protect persons, property and the environment against nuclear damage through the establishment of safety standards and regulatory practices.

6. CEF (Pty) Ltd is a private company, incorporated in terms of the Companies Act and governed by the Central Energy Fund Act, 38 of 1977. The CEF group of companies operates in the energy sector and consists of entities with commercial, strategic, licensing and development roles. The group consists of five operating subsidiaries – PetroSA, IGas, Petroleum Agency SA, Oil Pollution Control South Africa (OPCSA) and Strategic fuel fund (SFF). CEF also manages, on an agency basis, the strategic crude oil stock for the country. PetroSA is involved in e South Africa’s on- and offshore exploration for oil and gas, as well as for the rest of Africa; the production of environmentally friendly petroleum fuels and petrochemical products from gas and condensate at its synfuels refinery outside Mossel Bay; and the management of oil storage facilities. SFF manages South Africa’s strategic reserves of crude oil. OPCSA provides oil prevention, control and clean-up services, mainly in South Africa’s ports and coastal areas, in terms of South Africa’s National Environmental Management Act (NEMA). PASA manages the promotion and licensing of oil and gas exploration, development and production in South Africa and its offshore coastal areas as part of creating a viable upstream oil industry in the country. iGas acts as the official agent of the South African Government for the development of the local hydrocarbon gas industry, comprising natural gas (LNG) and petroleum gas (LPG).

GENERAL INFORMATION - SECTION 1

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7. The South African Nuclear Energy Corporation (NECSA), mandated by the Nuclear Energy Act, 46 of 1999, to undertake and promote research and development in nuclear energy and radiation science. NECSA is also, on behalf of the state, responsible for the decommissioning and decontamination former strategic nuclear facilities; management of nuclear waste disposal on a national basis; application of radiation technology for scientific and medical purposes; operation of the SAFARI-1 nuclear reactor and the Pelindaba site and accompanying services; and execution of the safeguards function.

8. The South African Diamond and Precious Metals Regulator (SADPMR), established in terms of the Diamonds Act, 56 of 1986 and 29 of 2005 as amended, and the Precious Metals Act, 37 of 2005. The South African Diamond Board ceased to exist on 30 June 2007 and the South African Diamond and Precious Metals Regulator came into effect on 1 July 2007. The Regulator took over the mandate, current functions, staff and all assets and liabilities of the Diamond Board. The Diamond Bourse of South Africa was incorporated into the Regulator with all its staff, assets and liabilities. The Regulator regulates the diamond, platinum and gold sectors and is funded through a state grant, as opposed to the former Diamond Board, which generated its own funding from levies and licence fees from sight holders.

9. The Electricity Distribution Industry Holdings (Pty) Ltd (EDIH), created to restructure the electricity distribution industry into six financially viable regional electricity distribution companies ( REDs) as outlined in the White Paper on Energy Policy of 1998.

10. The State Diamond Trader, established in terms of the Diamond Act, 56 of 1986 and 29 of 2005 as amended, to promote equitable access to and beneficiation of diamond resources, address distortions in the diamond industry and correct historical market failures to develop and grow South Africa’s diamond cutting and polishing industry. The State Diamond Trader commenced its operations in September 2007 and was officially launched by the Director General, Advocate Sandile Nogxina, on behalf of the Minister of Minerals and Energy on 29 February 2008.

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OVERVIEW BY THE DIRECTOR GENERAL

Ministers, the end of the 2009/10 financial year also sees the closure of the Department of Minerals and Energy as we know it. We have worked diligently to divide the department into two separate entities as proclaimed by the State President. The new dispensation is aligned with our resolution to transformation and govern the minerals and energy sectors and stimulate economic growth to improve the quality of life for all our citizens.

I present the Department of Minerals and Energy’s performance report for the 2009/10 financial year.

MINING

In our continued effort to strengthen our regulatory framework, the Department completed the Geoscience Amendment Bill, 12 of 2010. This Bill was endorsed by Cabinet and gazetted in December 2009, and will be introduced to Parliament during the 2010/11 financial year. The main focus of the Bill is to effectively manage infrastructure development in dolomitic terrains and acknowledge the Council for Geoscience (CGS) as the advisory authority on geohazards and custodian of all geotechnical data and technical information on exploration and mining.

The Mining Charter, introduced in 2004, makes provision for assessing industry progress against set targets. An assessment, completed in October 2009, also reviewed the use of the Charter as an instrument of transformation. The report will form the basis of a review of the Charter in the period going forward.

Dealing with the environmental legacy of more than a hundred years of mining in South Africa requires a concerted effort to mitigate further degradation and pollution, as well as a potential impact on communities in surrounding areas. In response, the Department has:• developed a rehabilitation management strategy for derelict

and ownerless mines, which is ready for tabling before and consideration by Cabinet, and

• established a rehabilitation oversight committee as a transitional structure to implement the strategy and manage the progress of concurrent rehabilitation.

The Department also attended the 18th session of the United Nations Commission on Sustainable Development (UNCSD 18) and participated in the drafting of South Africa’s Country Report on mining to ensure that sustainable mining, aligned with the triple bottom line, is implemented in the country. The Country Report outlines the mining industry’s progress against the agreed developmental targets of the

Johannesburg Plan of Implementation (JPOI), which was adopted by all member countries at the World Summit on Sustainable Development held in Johannesburg in 2002. We will also participate in the session next year, where policy negotiations will take place.

The Department hosted the 7th African Mining Partnership (AMP) Plenary in Cape Town in February 2010 with Ghana as Chair and South Africa as the Secretariat. This was the last NEPAD AMP, and African ministers responsible for mining lobbied successfully for the transfer of the AMP to the African Union (AU). This merger will greatly improve the AMP’s standing, attract more participation, facilitate access to the AU’s financial resources and help achieve its vision of increasing the benefit of Africa’s mineral wealth for its own people.

In 2009, Cabinet approved the Department’s participation in the African Diamond Producers Association (ADPA). South Africa was nominated to take over the Chairmanship of ADPA from Angola during the second ordinary meeting of the Council of Ministers in 2010. Membership of this Association presents a window of opportunity for the country to position itself strategically amongst diamond producing countries in Africa and could provide significant impetus to its diamond beneficiation initiatives and aim of becoming a beneficiation hub and gateway to Africa.

The Department’s health and safety function is aligned with the related approved plan. The key recommendations from the Tripartite Leadership Summit are being implemented and the process of codifying best practice noise, fall-of-ground (FOG) and airborne pollutant control is progressing well.


DIRECTOR GENERAL’S OVERVIEW

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Cooperation between the Mining Qualifications Authority and the Department to improve occupational safety and health included raining all inspectors in new approaches to inspections and audits, while a programme to train 40 000 health and safety representatives is well underway. These strategic projects will, among others, enhance a health and safety dialogue to improve health and safety governance at mine sites.

ENERGY

During the year under review, we held a successful Renewable Energy Summit to review the Renewable Energy Policy. We received a positive stakeholder feedback on the progress made in attaining renewable energy targets, as well as the challenges encountered in the sector which led to a decision by the Department to revise the 2003 Renewable Energy White Paper. The revised White Paper, which will be finalised before the end of 2010 financial year, was revised with the assistance of a service provider at a cost of R1, 489 million.

We also engaged the public in the development of the Solar Water Heating Framework to guide the mass rollout of solar water heaters across the country. Our Renewable Energy Market Transformation Programme, in collaboration with the World Wide Fund for Nature (WWF) and the University of Stellenbosch, hosted a workshop to examine the industrial potential for concentrated solar power (CSP).

During the past year, the Department also supported the launches of key renewable energy projects, particularly the small-scale hydro project in Bethlehem in the Free State and the Ethekwini landfills gas-to-electricity project in Durban, KwaZulu-Natal, which were particularly funded through the Renewable Energy Finance and Subsidy Office (REFSO).

The Department encountered challenges with finalising financing for biolfuels and will complete this process during the 2010/11 financial year. The draft strategic framework for solar water heating will also be completed in the forthcoming financial year, as further engagement with stakeholders is required to agree on the most feasible implementation model. Pilot projects were identified to test framework, such as the Winterveldt initiative, and the Free State Province assisted, through the donor-funded REMT, to develop a business plan for the roll-out of solar water heaters. The Renewable Energy Directorate also participated in awareness campaigns with the Designated National Authority and Special Directorates.

A nuclear energy research and development (R&D) cooperation agreement was signed with the United States of America to strengthen our R&D capacity and capability. All nuclear materials and equipment to, in and from the country are recorded. During the reporting period,

authorisation was given for 10 possessions, three acquisitions, five disposals, 22 imports, 13 exports and two transfers.

GEF/UNDP funding of approximately 700 000 USD for the year under review enabled the South African Wind Energy Programme to appoint service providers and sub-contractors to update the South African wind atlas. The results are expected towards the end of 2010. The remaining funds were used to develop a business for the South African Wind Energy Association (SAWEA) and establish a SAWEA Board, as well as energy workshops which focused on, amongst others, standards and wind resource development.

As at 31 March 2010, approximately 15 198 petroleum license applications had been received, with 12 453 processed and approximately 2 745 waiting to be processed. Interim measures were adopted to mitigate the deficiencies of the current Petroleum Products Amendment Licensing System (PPALS). The project plan for a refined system is in place, but IT infrastructure constraints prevented its implementation and the project was put on hold due to non-delivery by the consultants.

CONCLUSION

Finally, I would like to commend and thank all our staff for their fortitude and commitment to ensuring that we progress in our efforts to improve the lives of our citizenry.

Unfortunately the DME’s reputation for clean audit reports has been blemished in the last year of its existence. We note however that the challenges presented by the tight deadlines of establishing the two separate departments exerted pressure on our strained resources. Notwithstanding the preceding, both departments have undertaken to employ measures that will resolve the matters identified in the audit report

It is with a degree of sadness that the Mineral Resources and Energy family members will part ways to pursue different directions. I am confident, however, that their diligence will allow the new Departments to build on the successes achieved thus far in their respective portfolios.

Thanking the Ministers,

Adv Sandile NogxinaDirector General: Department of Minerals and Energy

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DEPARTMENTAL PUBLICATIONS AND KEY DOCUMENTS – 2009/10

Reviews

• 26th Edition of South Africa’s Mineral Industry (SAMI) 2008’09• Invest in an Intense and Diverse Mineral Industry 2010

Information Circulars

MB Bulletin Trimester Vol 22 Issue 1 of 3 2009 (April 2009)Vol 22 Issue 2 of 3 2009 (July 2009)Vol 22 Issue 3 of 3 2009 (October 2009)

Directories

• D1/2010: Operating Mines and Quarries and Mineral Processing Plants in the Republic of South Africa • D2/2010: Operating and Developing Coal Mines in South Africa• D3/2010: Operating and Developing Gold Mines in South Africa• D4/2010: Salt Producers in the Republic of SA• D5/2010: South African Mineral Beneficiators• D6/2009 Platinum-group Metal Mines in SA • D7/2009: SA Diamond Handbook and Operating Diamond Mines Directory• D8/2009: Ferrous Mineral Commodities produced in SA• D9/2008: Producers of Dimension Stone in South Africa• D10/2010: Producers of Nonferrous Metal Commodities produced in SA • D11/2008: Producers of Industrial Mineral Commodities in South Africa• D12/2009: Operating and Developing Black Economic Empowerment Mining Companies • D13/2009: African Mining – Mining Companies, Government Departments and related organisations• D14/2009: Producers of Sand and Aggregate in SA

Statistics

• Minerals - South Africa: Statistical Tables 1987 – 2008• Mineral Production and Sales Statistics (Monthly and Annually)


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Bulletins / Reports

• R45/2008 An Overview of South African Iron, Manganese and Steel Industry during the period 1986-2006• R51/2009 An Overview of current platinum-group metal exploration projects and new mine developments in South Africa• R55/2008 An Overview of South Africa’s Vanadium Industry during the period 1997-2006• R58/2008 Overview of the South African Sand & Aggregate Industry• R59/2008 An Analysis of SA’s Mining Contribution to the National Economy• R68/2010 An Overview of Current Gold Exploration Projects and new mine developments in South Africa• R69/2008 Overview of SA Mineral Based Fertiliser Industry• R71/2008 An Overview of SA’s Titanium Mineral Concentrate Industry• R73/2008 An Overview of South Africa’s Clay & Brick Industry• R74/2009 Overview of the Nickel Industry in South Africa, 1997-2006• R75/2009 Supply Demand Dynamics of Base Metals versus prices, 1997-2006• R76/2009 The future role of the Waterberg Coalfield in SA Coal Industry• R77/2009 Growth prospects of SA’s Coal exports and the effect on Black Economic Empowerment Companies• R78/2009 Developments in the Economic contribution of Hydrocarbons, Natural Gas and Coal• R80/2009: Special Clays in SA• R81/2009: Status of the Fluorspar Industry in SA• R82/2009: Gypsum in SA• R83/2009: Structure of the Andalusite Industry in SA• R84/2010: Value Chain System of SA Heavy Minerals Industry• R85/2009: Lime Industry in SA• R86/2009: Chromium Industry Developments

Handbook

• H2/2009: Precious Metals Trade – General Information Handbook• H3/2008: South African Steel Producers Handbook

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MESSAGE FROM THE MINISTER OF MINERAL RESOURCES

INFORMATION ON THE MINISTRY OF MINERAL RESOURCES

I have the pleasure of presenting to you our Annual Report for the 200/10 financial year.

In many respects, the past financial year has been both challenging and rewarding. Our fourth democratic election took place in the midst of a global recession, ushering in a new administration faced with the daunting task of cushioning the country from the impact of a worldwide economic downturn. I am pleased to report that while South Africa’s mining industry did not escape the impact of the recession, we rose to the challenges and will certainly reap the benefits going forward.

Shortly after taking office in 2009, President Jacob Zuma announced a reorganisation of national departments to align them with the priorities of the new Government. Among others, the Department of Minerals and Energy was divided into two Departments, that of Mineral Resources (DMR) and Energy (DoE). During the transition period, we entered into a shared support services agreement with the newly formed DoE to provide them with support services until the end of March 2010. I am pleased to report that, as of 1 April 2010, the Department of Mineral Resources became a stand-alone entity.

As indicated, the South African mining industry was not immune to the wrath of the global economic crisis during the past year. In collaboration with organised business and labour, and under the auspices of the Mining Industry Growth, Development and Employment Task Team (MIGDETT), the Department led a counter-cyclical intervention which saved 65 000 of the then-anticipated 100 000 job losses as a result of the recession. We also hosted a Mining Summit at the end of March 2010 to develop a strategy for sustainable growth and meaningful transformation in the mining industry to ensure that it is cushioned against future economic pressure. I am confident that the agreements reached at the Mining Summit will, during the first quarter of the 2010’11 financial year, produce a plan for the sector to attract new investment, create decent jobs and contribute significantly to the country’s overall socio-economic development.

While mining’s contribution to growth and development is significant, its impact on the environment can be detrimental. In mitigation, my Department continued to promote environmental management policies through more stringent legislation and a strong focus on research. Priority areas include the development of mine closure and water management strategies to deal with the legacy of derelict and ownerless mines. Significant strides have been made in this regard and we will continue to prioritise the adoption of best practice and standards to ensure that this area is adequately regulated.

Min S ShabanguMinister of Mineral Resources


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Representations from various stakeholders resulted in the submission of the beneficiation strategy to another round of consultations. Final amendments are being made and the strategy will be tabled before Cabinet for adoption as policy before the end of the 2010’11 financial year.

Major developments in the 2009’10 financial year saw a moratorium by Cabinet on the disposal of State mining assets and our audit of the State’s involvement in mining. We will table the findings of this audit for Cabinet consideration in the forthcoming financial year.

The past five years, which saw the transition from the mineral right ownership system to a State custodianship of mineral and petroleum resources, was characterised by a strong focus on processing applications in terms of the Mineral and Petroleum Resources Development Act (MPRDA), 28 of 2002, as amended. During the review period, the Department committed to shortening application turn-around times from six to three months for prospecting rights and twelve to six months for mining rights, to facilitate a seamless transition process.

Our focus going forward will be on giving effect to the objectives of the MPRDA and the Broad-Based Socio-Economic Empowerment Charter through monitoring and evaluating the implementation of social and labour plans, mining and prospecting programmes and environmental management.

The health and safety programme continued to play a critical regulatory role in improving occupational health and safety. While these efforts, for the second year, resulted in fewer mining deaths and injuries, the 165 reported injuries and deaths during the past year is still too high. A health and safety research programme, funded and operated under the auspices of the Mine Health and Safety Council, will therefore focus on finding solutions to health and safety challenges, such as rockfalls, seismicity, silicosis and noise.

Skills development is, and will continue to be, critical for the growth of the South African economy. The Mining Qualifications Authority (MQA) fulfilled their service level agreement with Government through the implementation of leanerships, internships, ABET programmes and a bursary scheme. The MQA also supports mine inspector training and, during the past year, started with the training of 40 000 health and safety representatives. Alignment with SETA-accredited mining-related training at Further Education and Training (FET) colleges will be prioritised in the year ahead.

In addition to regulatory progress, my Department also intensified the process of improving relations between mining houses, their host communities and provincial and local Government structures.

These achievements would not have been possible without the collaboration and partnership of a broad spectrum of role-players. A special word of appreciation goes to the management and employees of my Department. I thank them for their outstanding commitment under the sterling leadership of the Director General, Adv Sandile Nogxina. I would also like to acknowledge the work of the Boards and management of the State-owned entities reporting to me. Lastly, I would like to commend the captains of industry and the leadership of the labour movement, and their constituencies, for their meaningful contribution to the successes of our industry.

As we table the DME’s final annual report, we are mindful of the enormous task ahead for the DMR. The mining industry has a critical role to play in the South African economy, especially in its support of Government’s focus on job creation and skills and rural development. It is within this context that we close the chapter on the DME and look forward to the contribution of mining towards the overall socio-economic development of South Africa.

This annual report is tabled for your consideration.

SUSAN SHABANGU, MPMINISTER OF MINERAL RESOURCES

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MESSAGE FROM THE MINISTER OF ENERGY

Min D PetersMinister of Energy


The financial year which ended on 31 March 2010 marked the establishment, at a rudimentary level, of the Department of Energy (DoE). We had to construct the architecture of a new Department with a new mandate, mission, vision and organisational values. This epoch-making work was undertaken at a time when globally, countries were taking steps to guarantee the security of their own energy supplies. As a leader and regulator of the energy sector over the past year, my Department can rightfully look back with pride at our role in stabilising this sector at a time when countries world-wide, including South Africa, were emerging from the worst economic crisis of this century. This annual report comprehensively covers the activities of the Department of Energy during the year under review. It is intended to provide stakeholders and other interested parties with information about our key performance areas and financial performance. It also reviews our contribution to Government’s broader objective of ensuring a better life for all our people: black and white. Our activities for the better part of the 2009/10 financial year focused on the country’s electricity plan, well-known as the IRP2. This groundbreaking plan, which will be finalised in the forthcoming financial year, will provide clarity about the country’s electricity requirements in the period before and beyond 2010. In an ideal world, the drafting of the IRP should have been preceded by that of an integrated energy plan for South Africa. This plan, including oil and gas, will now be developed in the year ahead.

The involvement of youth and women in the energy sector will continue to define our work with vulnerable groups and will be escalated in the year ahead. The education and training of youth will enable us to address the sector’s capacity challenges and support the country’s growth and development.

During the past year, a learner focus week as part of our Malaysian school programme, aimed to encourage learners to study science and technology and create awareness about the array of career opportunities in the energy sector and the need for education and training to pursue them. The Department’s Memorandum of Understanding with the University of Fort Hare can be highlighted as a harbinger of our drive to partner with institutions of higher learning to develop the scarce skills required for our sector.

INFORMATION ON THE MINISTRY OF ENERGY

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Given the finite nature of our country’s resources, our programmes are also aligned with the National Industrial Policy Framework to include high-potential projects such as the nuclear programme. It is our intention to increase prospects for sustainable jobs through these projects to help eradicate poverty and ultimately contribute to economic growth and development.

The narrow electricity reserve margin that led to South Africa’s energy crisis and the resultant establishment of the multi–stakeholder National Emergency Response Team (NERT), necessitates an ongoing focus on energy conservation and has directed our activities in entrenching sustainable behavioural change in energy management and usage.

One of these is the imperative of reducing greenhouse gas emissions, which directed our focus to cleaner energy sources through the use of renewable energy and environmentally–friendly policies. During the year under review, we convened the Renewable Energy Summit and standardised regulations under the Electricity Regulation Act, 4 of 2006, and Energy Act, 34 of 2008, respectively. This has been buttressed through among others, the energy feed in tariffs, launch of the Energy Addicts campaign, introduction of the smart meter programme for the high-consumption domestic sector, as well as the introduction of the solar water heating programme, which will start in the next financial year.

In conclusion, I would like to acknowledge the sterling work done by the management and entire staff of the Department, ably led by the Director General, Ms Nelisiwe Magubane. I am also grateful to the Boards and management of all the State-owned entities that have worked with us in effecting our mandate.

DIPUO PETERS MPMINISTER OF ENERGY

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MINISTERIAL VISITS ABROAD

Visits abroad undertaken by Ministers Ms Susan Shabangu and Dipuo Peters (and the Directors General Adv Sandile Nogxina and Nelisiwe Magubane on behalf of the Ministers)

INTERNATIONAL VISITS UNDERTAKEN BY THE MINISTER AND DIRECTOR GENERAL (ON BEHALF OF THE MINISTER) APRIL 2009 TO MARCH 2010

DATE VENUE EVENT PARTICIPATION19-21 August 2009 Angola State visit Ministers of Mineral Resources &

Energy3-8 September 2009 Australia Africa Down-Under Conference and Trade

andInvestment ConferenceMinister of Mineral Resources

14-18 September 2009 Austria IAEA Conference Minister of Energy28 September-1 October 2009

Ethiopia AMP 5th Executive Committee Mid-Term Review meeting

Minister of Mineral Resources

7- 9 October 2009 Angola Technical visit DG of Mineral Resources12-13 October 2009 United Kingdom,

London3rd Ministerial meeting of the Carbon Sequestration Leadership Forum

Minister of Energy

3-4 November 2009 Equatorial Guinea State visit Minister of Energy7-13 November 2009 Venezuela Working visit DG of Mineral Resources9-14 November 2009 Nigeria Bi-National Commission Minister of Energy1- 3 December 2009 Cuba SA/Cuba Joint Bilateral Commission DG of Mineral Resources7- 9 December 2009 Zambia State visit Minister of Mineral Resources8-9 December 2009 Zambia State visit Minister of Energy9-11 December 2009 Ethiopia Africa Union Conference of Ministers Responsible

for HydrocarbonsMinister of Energy

15-18 December 2009 Denmark, Copenhagen Participate in the Climate Change negotiations DG of Energy16-17 January 2010 United Arab Emirates 3rd International Renewable Energy Agency

Preparatory meetingMinister of Energy

2- 5 March 2010 United Kingdom State visit Ministers of Mineral Resources and Energy

2-5 March 2010 United Kingdom State visit DG of Mineral Resources7-10 March 2010 Canada Prospectus and Developers Association of Canada Minister of Mineral Resources11-12 March 2010 USA 10th Anniversary of the UN Resolution 1325 Minister of Energy10-14 March 2010 USA, New York Reuters Global Mining and Steel Summit Minister of Mineral Resources22-23 March 2010 Switzerland, Geneva United Nations Conference on Trade and

Development Global Commodities ForumDG of Mineral Resources

23 March 2010 DRC African Petroleum Producers Association (APPA) Ministerial meeting

Minister of Energy

25-26 March 2010 Egypt Minister’s working visit Minister of Energy

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PROGRAMMEPERFORMANCE

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PROGRAMME OVERVIEW

Voted Funds (2009’10)

Appropriation Main AppropriationR’000

Adjusted Appropriation R’000

Actual Amount Spent R’000

Over/Under ExpenditureR’000

4,647,196 4,682,004 4,544,716 137,288Responsible Minister Minister of Minerals and EnergyAdministering Department Department of Minerals and EnergyAccounting Officer Director General of Minerals and Energy

Aim of the Vote

The aim of the Department of Minerals and Energy is to formulate and implement an overall minerals and energy policy to ensure the optimum utilisation of mineral and energy resources.

KEY MEASURABLE OBJECTIVES

Strategic objectives

At the 2009‘10 annual strategic planning session, used to align our mission, vision and strategies with Government’s imperatives of eradicating poverty, transforming our economy and society, and reconstructing and developing social justice, we developed the following strategic objectives to support our revised vision and mission:

1 Promote and regulate the minerals and energy sectors – through ensuring optimal service to all stakeholders by improving turnaround times, providing clear regulatory and policy frameworks and credible and accessible information, building alliances and partnerships, and improving the awareness and reputation of the DME.

2 Ensure effective service delivery through efficient organisational processes – through implementing legislation, consistent monitoring and enforcement guidelines, standardised policies and procedures, service standards and managed service level agreements, as well as understanding and managing customer expectations and providing regular consultation and feedback.

3 Promoting and maintaining a learning organisation – by attracting, developing and retaining skills, improving leadership and management capabilities, instilling core institutional values and managing institutional knowledge.

4 Ensure efficient, effective and economic use of financial resources – by aligning strategy with budget, managing budgets and costs, effectively providing State-owned entity oversight and ensuring good corporate governance.

STRATEGIC OVERVIEW AND KEY POLICY DEVELOPMENTS FOR THE 2009’10 FINANCIAL YEAR

Mining

In May 2009, the Inspectorate introduced critical amendments to the Mine Health and Safety Amendment Act (MHSAA), 74 of 2008, which enhanced the ability of the State to address the challenges of the high rate of injuries, ill-health and deaths in the industry. The Act also introduced stricter sanctions for non-compliance with health and safety standards.

While positive and encouraging milestones have been achieved in this regard, the fatalities and injuries remain unacceptably high, with recurring fatal accidents at some mines. It is evident that significant effort is still needed to effectively address this situation.

PROGRAMME PERFORMANCE - SECTION 2

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The Mining Charter, introduced in 2004, makes provision for assessing industry progress against set targets. An assessment, completed in Oc-tober 2009, also assessed the use of the Charter as an instrument of transformation. The report will form the basis of a review of the Charter in the period going forward.

The Department has published a strategy to deal with derelict and ownerless mines in South Africa, recognising the long heritage of mining and its inherent environmental liability. The strategy includes the creation and verification of a database of abandoned mines, prioritising these mines for rehabilitation and site management.

The Geoscience Amendment Bill (GAB), 12 of 2010, was endorsed by Cabinet and gazzetted in December 2009, will be introduced to Parliament during the 2010’11 financial year. Its main focus is to effectively manage infrastructure development in dolomitic terrians and acknowledge the Council for Geoscience as the advisory authority on geohazards and the custodian of all geotechnical information related to exploration and mining.

Energy

Implementation of the National Energy Act, 34 of 2008

The National Energy Act, 34 of 2008, defines energy data as energy-related statistics, facts, figures, information and records of the energy industry and all other economic sectors. This places the collection of energy data in the ambit of the Department, as regulated by the Minister. The DoE faces a number of challenges in collecting this data, such as late submissions or none at all by data providers. This makes it difficult for the Department to meet its targets and commitments to supply statistics to the United Nations (UN) and other international bodies, as well as timeously publish energy statistics. In line with Section 19(1) (a), (b) and (c) of the Act, draft regulations on the Provision of Energy Data have been developed and approved for release for public comment. The regulations will be gazetted in the 2010’11 financial year and increase the Department’s ability to effectively collect, collate and publish quality energy data and information.

Renewable Energy Policy review

The success of the Renewable Energy Summit in March 2009 and positive stakeholder feedback on the progress made in attaining renewable energy targets, as well as the challenges encountered in the sector, led to a decision by the Department to revise the 2003 Renewable Energy White Paper. The revision will take the current receptivity towards renewable energy technologies in local and global environments into account to provide a new policy direction and set more ambitious medium- and long-term targets for the period to 2050.

The Department’s Renewable Energy Market Transformation Unit appointed service providers to assist with the revision of the White Paper at a cost of approximately R1,489 million. The revised White Paper will be finalised by the end of the 2010/11 years, and a Policy Advisory Committee consisting of a wide variety of stakeholders, was established to oversee this process. The revised White Paper is expected at the end of 2010 financial year. In addition, we also engaged the public in the development of the Solar Water Heating Framework to guide the mass rollout of solar water heaters across the country. The Department presented its proposed framework (details) at a conference attended by more than 500 delegates.

Our Renewable Energy Market Transformation Programme, in collaboration with the WWF (World-wide Fund for Nature) and University of Stellenbosch, hosted a workshop to examine the industrial potential for concentrated solar power (CSP). The focus on industrialisation is premised on the fact that renewable energy is more than merely a new or alternative source of energy. Instead, similar to most other forms of economic activity, it creates an extensive value chain with opportunities to expand and diversify South Africa’s industrial base.

This includes the creation of new businesses locally to supply manufacturing, operational, maintenance and refurbishment services, and everything in between. In addition, CSP is generally regarded as South Africa’s best long-term base load option for generating large-scale renewable energy. Similar industrialisation options were contemplated for wind energy and solar water heating. These meetings also created opportunities to consult with key stakeholders and disseminate information.

20

During the past year, the Department also supported the launches of key renewable energy projects, particularly the small-scale hydro project in Bethlehem in the Free State and the Ethekwini landfill gas-to-electricity project in Durban, KwaZulu-Natal, which were partially funded through the Renewable Energy Finance and Subsidy Office (REFSO).

Nuclear Energy Policy

The multifaceted nature and complexities involved in deploying nuclear energy requires a coordinated approach to implement the Nuclear Energy Policy. This ranges from decisions to deploy new nuclear power stations to determining the funding and procurement framework and the industrialisation and localisation strategy. The Department will develop the nuclear energy implementation strategy within the framework of the Inter-Ministerial Committee on Energy which was established in December 2009.

The National Radioactive Waste Disposal Institute Act, 53 of 2008, was promulgated during the past financial year. The development of the business case to list the entity is underway, as well as the appointment of A Board. The Disposal Institute is a critical entity in the overall management of radioactive waste material in accordance with international standards.

Energy Efficiency

The department together with the key stakeholders including members of the industry and the licensed distributors are continuing to cooperate in the efforts to promote and implement energy efficiency and demand side management programmes in order to address the electricity shortfall to meet the demand. In further collaboration with the department of Trade and Industry (dti), South African Bureau of Standards (SABS) and industries, a number of energy efficiency standards including the standard for energy efficient building are being finalised. In order to create capacity within the industrial sector the department together with the dti and BUSA , with the help of United Nation Industrial Development Organization( UNIDO) are implementing a capacity building programme on energy efficiency improvement within the industrial sector. This programme will see a number of technical professionals undergoing training programme to enhance their energy management skills.

The department is also, assisting the licensed distributors( municipalities and Eskom) to implement the electricity demand side management programmes through fiscal allocations. These allocations are currently used on retrofitting existing in-efficient lights including street and traffic lights with energy efficient technologies.

The department is continuing to engage with National Business Initiative on the formation of the new energy efficiency accord and how best to implement it. A number of meetings are taking place in this regard and a new accord will be agreed accordingly.

The National Energy Efficiency Strategy

The National Energy Efficiency Strategy was reviewed through a number of workshops with key stakeholders and was then gazetted in May 2009 for further public comments. Given the nature of comments and technical concerns raised during public consultation, it was therefore decided that a lot of work and consultation with key stakeholders is needed to allow the finalization of a proper strategy talking to the current and future energy use. The strategy review process is underway and is expected to be finalized by end of March 2011.

Overview of conditional grants

The�purpose�of� this�grant� is� to�assist�selected� licensed�distributors�with�high� load�centres�and�electricity�savings�potential,� to� implement� the�electricity�and�demand�side�management�programmes�in�order�to�reduce�the�electricity�consumption�and�mitigate�the�risk�of�load�shedding�and�supply�interruptions.��


21

The table below provides a summary of the type of grant(s), total allocations, and the transfer trends for 2009/10:

Schedule 6: Energy Efficiency and Demand Side Management- this programme focuses only on retrofitting the existing lighting technologies with efficient technologies

Province Total allocation Total transferred to date

R’000 R’000Western Cape 39000 39000Eastern Cape 35 000 35 000Mpumalanga 12 100 12 100Limpopo 3 000 3 000North West 3000 3000KwaZulu Natal 24 000 24 000Free State 4 000 4 000Gauteng 54 900 54 900

Total 175 000 175 000

Schedule 7: Energy Efficiency and Demand Side Management Programme- this will focus on the roll-out of SWHs within selected areas.

Province Total allocation Total transferred to date

R’000 R’000Gauteng 74 475 74 475

Total 74 475 74 475

Clean Development Mechanism (CDM):

Clean Development Mechanism (CDM) is an important component of the global response to climate change mitigation. The development of the Clean Development Mechanism (CDM) market in South Africa has lagged behind some other industrialised developing countries. The pace of CDM project development to date has been slow. During this reporting period the Designated National Authority reviewed 37 Clean Development Mechanism projects (4 Project Design Documents and 33 project Identification notes). These projects have potential to help South Africa reduce green-house gas emissions such as carbon dioxide, which is emitted largely by the energy sector. In addition these projects contribute to sustainable development objectives of the government in the form of poverty alleviation, access to clean energy and contribution to Renewable Energy and Energy Efficiency targets, technology transfer and economic development. The projects submitted to the Designated National Authority for initial review and approval include energy efficiency, waste management, cogeneration, fuel switching and electricity generation from renewable energy sources.

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Service delivery achievements: 2009/10

Sub-programme Objective Output performance/service delivery indicators

Actual performance against target

Target ActualDesignated National Authority

Regulation of CDM activity in South Africa

Issue letters of No Objection/ Approval for project submitted to DNA for review

70% of received projects within set time frames

37 projects have been reviewed( 33 Projects Idea Notes and 4 Project Design Documents

CDM Promotion and capacity Building

Publish CDM sector booklets and Annual CDM report

CDM promotion workshops

CDM sector booklets

1 CDM annual report.

9 Provincial workshop and 3 Sectoral workshop

CDM annual Report completed and is available on the website http://www.energy.gov.za/files/esources/kyoto/CDM.pdf

7 Provincial workshops and 2 sectoral workshops

The following CDM booklets were produced: Guidance for applicants of CDM in South Africa,CDM in the Agricultural sector, and CDM in the forestry sector.

OVERVIEW OF THE SERVICE DELIVERY AND ORGANISATIONAL ENVIRONMENT FOR 2009’10

During May 2009, President Jacob Zuma announced the restructuring of Cabinet and national departments to align the structure and electoral mandate of government with developmental challenges. As a result, the Department of Minerals and Energy (DME) was divided into two Departments, that of Mineral Resources and Energy. A Government-wide task team was established under the auspices of the Department of Public Service and Administration (DPSA) to oversee the transition. Due to funding and capacity constraints, the two new departments agreed to share support services through a Service Level Agreement wherein the Department of Mineral Resources, and the Director General of Minerals and Energy as the host Accounting Officer, agreed to provide support services to the Department of Energy until the end of the 2009’10 financial year.

Despite a significant additional workload, the affected employees in the DMR succeeded in establishing the separate Persal systems and information technology platforms to take effect for the two separate Departments on 1 April 2010.

Energy

Nuclear energy

The establishment of strategic relationships for the peaceful use of nuclear energy continues. A nuclear energy research and development (R&D) cooperation agreement was signed with the United States of America during the year under review to strengthen our R&D capacity and capability. Agreements with South Korea, Algeria and Canada are due for conclusion in 2010.

All nuclear materials and equipment to, in and from the country are recorded. During the reporting period, authorisation was given for 10 possessions, 3 acquisitions, 5 disposals, 22 imports, 13 exports and 2 transfers.


23

Renewable energy

Considering that renewable energy, as an emerging industry, interfaces with the electricity and liquid fuels sectors, the Department considered the creation of supportive environments in both these sectors. The capital subsidy programme under the Renewable Energy Finance and Subsidy Office (REFSO) slowed down after the announcement and anticipated implementation of the REFIT tariffs support mechanism, with one project only subsidised during the 2009’10 financial year. As a result, only R6 million of the R10, 678 million allocated for renewable energy projects was spent. A revision of the REFSO mandate was proposed to ensure that going forward, a significant number of projects benefit from the REFIT tariffs through providing critical assistance during the early developmental phases of projects. The pursuit of green power trading was also terminated as a result of the REFIT programme.

The Department contracted service providers to develop a business plan and domain protocol to implement a tradable renewable energy certificate system (TRECs). The recommendation from conclusion of this process was that its would not be cost-effective to implement TRECs given the low uptake of renewable energy and that the market should continue trading on a voluntary basis, with Government involvement considered at a later stage, depending on the need. The cost of these processes amounted to R693,970 and R794,300 respectively, with domain protocol funding provided through GEF/UNDP donor funds under the South African Wind Energy Programme.

The Department encountered challenges with finalising financing for biofuels and will complete this process during the 2010’11 financial year.

The draft strategic framework for solar water heating will also be completed in the forthcoming financial year, as further engagement with stakeholders is required to agree on the most feasible implementation model. Pilot projects were identified to test the framework, such as the Winterveldt initiative, and the Free State Province assisted, through the donor-funded REMT, to develop a business plan for the roll out of solar water heaters. The Directorate also participated in awareness campaigns with the Designated National Authority and Special Programmes Directorates.

GEF/UNDP funding of approximately 700,000 USD for the year under review enabled the South African Wind Energy Programme to appoint service providers and sub-contractors to update the South African wind atlas. The first results are expected towards the end of 2010. The remaining funds were used to develop a business plan for the South African Wind Energy Association (SAWEA) and establish a SAWEA Board, as well as wind energy workshops which focused on, among others, standards and wind resource development.

Petroleum Products Amendment Act (PPAA)

The implementation of the Petroleum Products Amendment Act (PPAA), 58 of 2003, provides for the licensing of manufacturers (refines), wholesalers and retailers of petroleum products, and the transformation of the local petroleum and liquid fuels industry to give effect to the Liquid Fuels Charter. As at 31 March 2010, approximately 15,198 license applications had been received, with 12,453 processed and approximately 2,745 waiting to be processed.

Interim measures were adopted to mitigate the deficiencies of the current Petroleum Products Amendment Licensing System (PPALS). The project plan for a refined system is in place but IT infrastructure constraints prevented its implementation and the project was put on hold due to non- delivery by the consultants.

Inspectors from the compliance and monitoring Unit undertook 166 site inspections every month, coordinated by the Director at the Unit’s head office. A number of challenges, such as budgetary constraints and the slow progress of prosecuting transgressors through the justice system impeded its ability to fully deliver against its mandate, especially in the area of fuel specifications which has remained unfunded for the last three financial years.

Import and export of fuel products

Refined products are imported only when local producers cannot meet the demand and the importation is subject to State control to promote the use of local refineries. Export permits are required and generally granted when overproduction occurs, provided that the needs of both South Africa and other Southern African Customs Union members have been met. Currently about 15% of petrol and diesel products are imported to

24

meet local demand. Petrol and diesel make up 55% of total liquid-fuel exports, while South Africa is also the main supplier of all other liquid fuels to Botswana, Namibia, Lesotho and Swaziland.

Mining

Strategy on the rehabilitation of ownerless and derelict mines

The Department published a dynamic strategy to deal with derelict and ownerless mines in South Africa, recognising the long heritage of mining and its inherent environmental liability.�The strategy is comprised of three main components, namely the creation and verification of a database of abandoned mines, prioritising these mines for rehabilitation and the proposed management of the sites.

Mine safety

The health and safety track record in the mining industry continues to be a matter of great concern despite a slight year-on-year slight reduction in mine accident fatalities - 165 deaths in 2009 compared to 171 in 2008. Fall-of-ground still accounts for most accidents and fatalities, followed by transportation and machinery. Work is ongoing to improve seismic network coverage and the integration of seismic systems to assess how mines deal with high-risk areas prone to seismic activity.

Occupational health impacts are not immediately recognisable and difficult to quantify. The excessive exposure to dust, or silicosis, remains a major cause of premature retirement and death amongst South African miners. Tuberculosis (TB) is also a serious challenge for the mining industry and is exacerbated by HIV and AIDS, while noise-induced hearing loss is also a significant health hazard. The Mine Health and Safety Council budgeted R29,5 million for a comprehensive ‘zero harm’ research programme in alignment with the TB, HIV and AIDS policies and national health programmes of the Department of Health.

During the 2009’10 financial year, 19 engineering and occupational hygiene learner inspectors completed their experiential training at the Gold Fields Business and Leadership Academy in mechanical engineering (12) and electrical engineering (7). The learner inspectors were placed in regions such as Free State, Gauteng, Mpumalanga, Northern Cape and North West) to address capacity challenges at the Mine Health and Safety Inspectorate (MHSI). Existing MHSI inspectors attended courses at WITS as well as IRCA to equip them with the knowledge and skills to ensure that healthy and safe working conditions are in place for South Africa’s miners.

Monitoring of our State-owned Entities (SOEs)

During the year the Department approved the revised compliance framework for entities reporting to the Ministers of Mineral Resources and Energy, respectively. Chairmen and CEO’s of the State-owned enterprises (SOEs) participated in strategic planning sessions where the Ministers outlined their expectations of the alignment of SOE mandates with that of the Department. While there has been an improvement in the oversight of SOEs, some challenges remain and will be addressed in the period going forward.

Service Delivery Improvement Plan (SDIP)

The Department developed a Service Delivery Improvement Plan (SDIP) in accordance with the Public Service Regulations of 2001 and to intensify the implementation of the Batho�Pele programme. The implementation of this plan forms part of our continuous consultations with all institutions tasked with compliance monitoring, monitoring and evaluation, such as the Public Service Commission and Treasury. The approved SDIP and service standards are, among others, used as a basis for assessing the performance of the Department of Minerals and Energy.

Roll-over and virement between the main appropriation allocations for 2009’10 – details listed in the Annual Financial Statements for the year.


25

DEPARTMENTAL RECEIPTS AND PAYMENTS

Departmental receipts

DEPARTMENTAL RECEIPTS 2005’06 2006’07 2007’08 2008’09 2009’10 2009’10 Deviation from TargetActual Actual Actual Actual Target Actual

R’000 R’000 R’000 R’000 R’000 R’000 R’000Sales of goods and services 2,512 1,812 3,362 5,638 6,190 5,512 (678)Transfers received - 466,511 - - - - -Fines, penalties, forfeits 276 458 218 112 376 382 6Interest, dividends, rent 129,803 188,515 244,126 256,089 184,423 210,791 26,368Financial transactions 1020 242 20,599 2,808 467 459 (8)

TOTAL 133,611 657,538 268,305 264,647 191,456 217,144 25,688

26

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27

MTEF TRANSFERS TO THE STATE-OWNED ENTITIES REPORTING TO THE MINISTER OF MINERALS AND ENERGY

Name of the Institution Amount transferred

R’000South African Nuclear Energy Corporation Ltd (NECSA) 564,144Council for Mineral Technology (Mintek) 161,108Council For Geoscience (CGS) 132,677National Nuclear Regulator (NNR) 23,793Electricity Distribution Industry Holdings Pty Ltd (EDIH) 72,214Mine Health and Safety Council (MHSC) 5,118South African Diamond and Precious Metals Regulator (SADPMR) 39,412

Total 998,466

OTHER TRANSFERS TO SOE’S REPORTING TO THE MINISTER OF MINERALS AND ENERGY

Name of the Institution Reason for transfer Amount TransferredR’000

Industrial Development Corporation of South Africa Small-scale Mining Projects 25,058Council for Geoscience (CGS) Implementation of the water ingress programme 17,600State Diamond Trader Bail-out during recession 1,000

TOTAL 43,658

TRANSFERS TO OTHER ORGANISATIONS

Name of the Institution Project Amount transferredR’000

Eskom Integrated National Electrification Programme 1,616,315Various municipalities Integrated National Electrification Programme 899,553Various municipalities Demand-side Management 175,000Eskom Energy Environment and Efficiency 74,475Solar Vision (Pty) Ltd Non-Grid Electrification 1,290Grootvlei Proprietary Mines State Assistance to Mines for Pumping Water from Underground Holdings 13,500Ethekwini Municipality Renewable Energy Subsidy Scheme 5,247Bethlehem Hydro Renewable Energy Subsidy Scheme 310

TOTAL 2,785,690

The Integrated National Electrification Programme is aimed at providing financial support in the form of transfer payments and conditional grants to achieve universal access to electricity. This programme consists of transfer payments to ESKOM, municipalities and non-grid service providers for grid and non-grid electricity connections at schools, clinics and households.

The assistance to mine sub-programme in turn assists marginal mines to pump extraneous water from underground holdings and provides research and strategic solutions to address the ingress of water into underground holdings in the Witwatersrand area.

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CONDITIONAL GRANTS

Overview of conditional grants

The table below provides a summary of the type of grant(s), total allocations and transfer trends for 2009’10.

SCHEDULE 6A: NATIONAL ELECTRIFICATION PROGRAMME

Province Total allocation Total transfers

R’000 R’000Western Cape 78,324 78,324Northern Cape 28,675 28,675Eastern Cape 234,300 234,300Mpumalanga 98,436 98,436Limpopo 139,761 134,681North West 59,122 52,967KwaZulu-Natal 123,303 123,303Free State 88,456 87,988Gauteng 82,580 75,740

Total 932,957 914,413

SCHEDULE 7: NATIONAL ELECTRIFICATION PROGRAMME

Province Total allocation Total transfers

R’000 R’000Western Cape 125,689 125,689Northern Cape 31,540 31,540Eastern Cape 397,753 397,753Mpumalanga 99,843 99,843Limpopo 183,416 183,416North West 99,209 99,209KwaZulu-Natal 385,057 385,057Free State 50,708 50,708Gauteng 94,150 94,150

Total 1,467,365


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DME CONSOLIDATED PERFORMANCE REPORTS

The activities of the Department of Minerals and Energy are organised in the following seven programmes:

Programme 1: AdministrationProgramme 2: Promotion of Mine Health and SafetyProgramme 3: Mineral RegulationProgramme 4: Mineral Policy and PromotionProgramme 5: Hydrocarbons and Energy Planning Programme 6: Electricity, Nuclear and Clean EnergyProgramme 7: Associated Services

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PROGRAMME 1: ADMINISTRATION

Purpose: To enable the Department to deliver on its mandate by providing strategic management and administrative support to the Department of Minerals & Energy and its Ministry.

CORPORATE SERVICES BRANCH

Headed by the Deputy Director-General: Corporate Services, the Branch consists of five Chief Directorates: • Management Services (Human Resources Management, Human Resource Development, Legal Services and Security Risk

Management)• Communication and International Co-ordination • Special Projects and Programmes• Strategy, Risk and Monitoring • The Ministry (administrative support). SERVICE DELIVERY – ACHIEVEMENTS – OBJECTIVES AND INDICATORS

The President’s announcement of the split of the Department of Minerals and Energy into two independent Departments came soon after the finalisation of the Department’s 2009’10 strategic plan. Among the decisions taken, were the restructuring of Corporate Services and the repositioning of Human Resources as priority focus areas to address capacity challenges accumulated over a number of years as the size of the Department increased. The government-wide restructuring process focused on the use of internal resources and used minimal internal capacity to restructure and reposition these critical functions.

Some of the planned projects were put on hold until the finalisation of the split (as indicated in the Tables below) had been completed. By the end of the 2009’10 financial year, the split of the Department of Minerals and Energy into two independent Departments of Energy and Mineral Resources, had been completed. The two new Departments became operational on 1 April 2010, each with its own budget, budget vote, personnel and accommodation.

Chief Directorate: Management Services

The Chief Directorate provides management support services to the Department regarding human resource and efficiency management, human resource development and capacity building, legal support services and security risk management. During the year under review, the Chief Directorate provided support services to line function components with a focus on restructuring and capacity building to align service delivery with new mandates and revised strategic priorities.

Human�Resource�and�Efficiency�Management�Directorate

The focus areas for this Directorate includes the provision of an integrated human resource management support service, which entails recruitment and selection, facilitating competency based assessments and performance evaluation of employees through the Performance Management and Development System (PMDS), managing service conditions and employment relations and implementing PILAR and Employee Assistance Programmes. A considerable effort was expended to recruit and retain employees to, among others, implement the new legislative frameworks for mining and petroleum.

Human�Resource�Development�and�Capacity�Building�Directorate

The main purpose of this Directorate is to build human resource capacity through training and development interventions. Training programmes included both department officials and third parties that were supported by various sponsored bursaries from both private and public sectors.


31

The Malaysian Scholarship programme started in 1999 with an agreement between South Africa (represented by the Department of Minerals and Energy) and the Malaysian Government (represented by the Petronas University). Scholarships are awarded to students from disadvantaged communities and ten (10) students enrolled for 2009. Ten (10) students graduated in civil, chemical and mechanical engineering at the 3rd South African Chapter of the Petronas University Convocation in December 2009.

Legal�Services�Directorate

The Legal Services Directorate provides the Department with comprehensive legal support services, including legal opinions and advice, assistance with legal drafting, litigations, and ensuring the implementation of the Promotion of Access to Information Act (PAIA), 2 of 2000 and the Promotion of Administrative Justice Act, 3 of 2000 The Directorate also assists in the determination of culpability of officials in cases of lost or damaged property, assists the Minister in handling appeals against the Department’s administrative decisions, and facilitates the signing of international agreements between the Department and third parties.

Chief Directorate: Communication and International Co-ordination

The Chief Directorate comprises the Directorates of Communication and International Co-ordination. The objective of the Chief Directorate: Communication is to develop communication policies and implement communication strategies for both internal and external stakeholders, including the media.

Services include spokesperson services for the Department, media relations, publications, branding, advertising, events management, marketing, stakeholder and intergovernmental relations, library services, management of the Presidential Hotline queries, exhibitions and other initiatives to enhance the image and the brand of the Department.The Directorate also ensures that all communication in the Department is coherent and aligned with the Government’s Programme of Action as outlined in the President’s State of the Nation Address.

Internal�Communication

Internal Communication is an integral part of the overall responsibilities of Communication Directorate. Information is disseminated to employees at head office and regional offices through the Intranet/Internet, notice boards, internal newsletters, internal memos, information sessions and library services.The key strategic pillars of the Unit are:

• Brand advocacy – getting staff to understand and live the values of the DME brand• Employer branding – Project DME as an employer of choice (HR communication)• Internal communication – keeping staff informed ie Intranet Updates/Communiqués• Internal Communication Support – Assist Units in carrying out their communication needs• Employee engagement – interacting and engaging with staff• Brand experience – events and projects• Fun and excitement – work is fun.

Media�Liaison�

This section is responsible for liaising with the media, handling media queries, conducting media briefings and undertaking media monitoring and analyses of newsworthy issues in the minerals and energy sector. The section also develops and implements innovative media plans for strategic intervention purposes.

Publications�

The unit produces content for DME publications such as magazines, annual reports, internal newsletters, strategic planning documents, brochures and posters.

PROGRAMME 1

32

Welcome�Centre/Reception

The Welcome Centre is the face of the organisation with the responsibility of creating a warm and welcoming atmosphere for DME visitors. The reception is the only access to the building and is therefore manned by professionals skilled in communication and interpersonal interaction.

International�Co-ordination

The International Co-ordination Directorate participated in a number of forums and meetings to advance the DME agenda in the energy sector. Energy security is becoming increasingly important and remains a challenge that could hamper development locally, and in the region. In this regard, the Department is promoting renewable energy resources to support sustainable development, including access to nuclear energy, which is consistent with South Africa’s domestic energy policies and programmes.

International�Agreements

The Department started the process of reviewing all international agreements signed to-date to determine the status, validity and alignment of these agreements with the country’s strategic objectives and to guide future agreements. Forging relations with different countries is a dynamic process and has evolved since the attainment of democracy in 1994. National interests will always determine the social, political and economic developmental strategic milieu for our interaction with foreign nations.During the forthcoming financial year, we will finalise this process and ensure that our plans of foreign engagement are aligned with national needs, including the conclusion of a number of bilateral agreements and establishing new strategic relationships within the nuclear industry. The evaluation of these agreements ensured the promotion of the Department’s agenda in multilateral fora and through bilateral relations and structured bilateral meetings.

International�Renewable�Energy�Agency�(IRENA)

Engaging within the multilaterals has seen the Department of Energy successfully joining IRENA, an organisation seen as being critical for the inter-governmental structure for renewable energy. The draft articles of association proposed a funding arrangement related to the country’s contribution scales to the United Nations (UN). South Africa, through the Department of Energy, has now signed the multilateral agreement and obtained the necessary cabinet approval to commit the funds to IRENA.

Chief Directorate: Special Projects and Programmes

This Chief Directorate continues to play a significant role in ensuring that the Department addresses the issue of transformation by facilitating the mainstreaming of gender and youth programmes within the mining and energy industries.

The Chief Directorate: Special Projects is tasked to implement legislated transformation imperatives of vulnerable groups and disadvantaged communities. The Department’s strategy in this regard is to mainstream gender and youth empowerment and facilitate the participation of these groups and communities through sector groups and outreach programmes.

During the year under review the Chief Directorate implemented its outreach programmes in four provinces: Northern Cape, North West, Mpumalanga and KwaZulu-Natal. In partnership with our stakeholders, we provided targeted institutions with equipment, essential electronics and working material as a contribution towards their work with abandoned teenagers, disabled persons, abused women and people living with HIV and AIDS.

The Chief Directorate also facilitated bursaries and internships for the youth in partnership with PertroSA, Xstrata and DeBeers. Road shows were undertaken in three provinces in partnership with WoeSA, a broad-based energy sector women`s group, to address persisting challenges and disseminate information on the DOE programmes with opportunities for the youth and women interested in this sector. The Minister of Energy also launched the Bethlehem Hydropower Project in the Free State, a flagship women empowerment programme in which WoeSA owns 38%.The Chief Directorate will continue to facilitate the inclusion of youth and women in all our programmes as part of our transformation programme.


33

Initiatives to increase in the number of learners that follow careers in the mining and energy sectors continued in partnership with provincial departments of education. These included partnering with other stakeholders in the mining and energy industries to disseminate information on careers in these sectors to learners. Chief Directorate: Strategy, Risk & Monitoring (the Compliance Office)

The Chief Directorate is the Department’s focal point on corporate governance and responsible for co-ordinating strategic planning, risk management, fraud prevention, quarterly and annual reporting, and compliance monitoring (by the Department and its public entities). It exercises oversight, in conjunction with line function branches, of the activities of state-owned entities reporting to the Ministers of Mineral Resources and Energy, respectively.

The Minister tables the 2008’09 Annual Reports of the Department and its state-owned entities, as well as its 2009’10 – 2011’12 Strategic Plan, in Parliament on time. This office and the state-owned entities have ensured compliance with the administrative, financial and legal requirements of the PFMA and Treasury Regulations, founding Acts of the respective entities and the Companies’ Act (where applicable). A Service Delivery Improvement Plan was developed as required by the Public Service Regulations and in line with the Cabinet decision to revitalise Batho�Pele. The plan was submitted to DPSA and implemented with effect from 1 April 2009.

Corporate�Governance

State-owned entities reporting to the Ministers of Mineral Resources and Energy are governed by, inter�alia:i. the Public Finance Management Act, government’s broader strategy to improve financial management and governance in the public

sectorii. the Protocol on Corporate Governance in the Public Sector, government’s guideline on how state-owned entities need to implement

corporate governance, andiii. the King III Report on Corporate Governance for South Africa.

Corporate governance is integral to creating an environment of good conduct, improved internal controls, risk management and better corporate culture. The Boards of the individual entities have the responsibility to set strategic direction, aligned with that of the Department, oversee and guide the entity and instil good governance. Transparency of conduct ensures that the Minister as shareholder can hold the Boards to account.

The public entities’ annual strategic plans, business plans, shareholder compacts (for scheduled 2s and 3a entities) and their budget proposals were reviewed and approved by the respective Ministers. Delays in the approval of some of the documentation were due to ongoing discussions between the Department and the entities concerned to ensure strategic alignment with government priorities.

PROGRAMME 1

34

PRO

GR

AM

ME

1: C

OR

POR

ATE

SER

VIC

ES

Purp

ose:

To

enab

le th

e D

epar

tmen

t to

deliv

er o

n its

man

date

by

prov

idin

g st

rate

gic

man

agem

ent a

nd a

dmin

istra

tive

supp

ort t

o th

e D

epar

tmen

t of M

iner

als

& En

ergy

and

its

Min

istry

.

Stak

ehol

der/C

usto

mer

Mea

sure

s

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-per

form

ance

Impr

ove

turn

arou

nd

times

Res

pons

e da

ysIm

plem

ent c

orre

spon

denc

e m

anag

emen

t sys

tem

Max

five

day

s (q

uerie

s)D

ecis

ion

take

n to

impl

emen

t doc

umen

t man

agem

ent/t

rack

ing

syst

em fo

r ent

ire D

epar

tmen

t ins

tead

of s

epar

ate

syst

ems

with

in

Bran

ches

; new

sys

tem

ope

ratio

nal i

n ne

xt fi

nanc

ial y

ear o

nce

DM

E da

taba

se s

plit

into

DoE

and

DM

R d

atab

ases

Budg

etar

y co

nstra

ints

and

D

epar

tmen

tal s

plit

Impl

emen

t the

mag

ic s

yste

mM

ax tw

o da

ys

(sub

mis

sion

s) p

er

desk

Dec

isio

n ta

ken

to im

plem

ent a

doc

umen

t man

agem

ent/t

rack

ing

syst

em fo

r ent

ire D

epar

tmen

t ins

tead

of s

epar

ate

syst

ems

with

in

bran

ches

; new

sys

tem

will

be o

pera

tiona

l in

the

next

fina

ncia

l yea

r af

ter D

ME

data

base

spl

it in

to D

oE a

nd D

MR

Budg

etar

y co

nstra

ints

and

D

epar

tmen

tal s

plit

Impr

ove

deliv

ery

of

inte

grat

ed

serv

ices

% a

dher

ence

to

pre

scrib

ed

timef

ram

es

Iden

tific

atio

n an

d do

cum

enta

tion

of a

ll pr

oces

ses

with

in

pres

crib

ed tu

rnar

ound

tim

es

Esta

blis

h ba

selin

e (2

009’

10)

All p

roce

sses

doc

umen

ted

Budg

et a

nd h

uman

cap

ital

% c

usto

mer

sa

tisfa

ctio

n D

evel

opm

ent o

f a C

S cu

stom

er

satis

fact

ion

stra

tegy

60%

sat

isfa

ctio

n re

sult

2009

Proc

ess

post

pone

d to

the

next

fina

ncia

l yea

rBu

dget

con

stra

ints

Impl

emen

tatio

n of

sur

vey

Esta

blis

h su

rvey

resu

ltsIm

plem

ent r

emed

ial a

ctio

nC

omm

unic

ate

effe

ctiv

ely

% ta

rget

aud

ienc

e re

ache

d E

xecu

tion

of m

arke

ting

cam

paig

ns60

% 2

009

Med

ia a

nd s

take

hold

er e

ngag

emen

t pla

n dr

afte

dBu

dget

ary

cons

train

ts

Exec

utio

n of

med

ia a

nd

stak

ehol

der e

ngag

emen

t pla

nTh

e fo

llow

ing

activ

ities

wer

e ex

ecut

ed:

Ints

ika

bene

ficia

tion

proj

ect -

13

Nov

embe

r

Barb

erto

n, U

mjin

di M

unic

ipal

ity p

ublic

par

ticip

atio

n - 2

7 N

ov

Mhl

othl

o , L

impo

po p

ublic

par

ticip

atio

n

Adve

rtise

men

t in

Joha

nnes

burg

Sto

ck E

xcha

nge

mag

azin

e (J

SE)

Adve

rtoria

l in

our e

xter

nal s

take

hold

er m

agaz

ine,

Mol

ato

info

rmin

g ou

r sta

keho

lder

s an

d th

e pu

blic

abo

ut s

plit

anno

unce

d by

the

Pres

iden

t

Even

ts s

take

hold

er p

lann

ing

com

mitt

ee m

eetin

g

Exec

utio

n no

t mea

sure

d du

e to

spl

it of

Dep

artm

ent


35

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-per

form

ance

Mon

itor a

nd e

valu

ate

the

stra

tegy

Not

yet

don

eBu

dget

ary

cons

train

ts -

this

will

done

onc

e st

rate

gy

is fu

lly im

plem

ente

dQ

uarte

rly p

rodu

ctio

n of

inte

rnal

ne

ws

lette

r (N

tom

e-Ts

ebe)

4 ne

wsl

ette

rsan

nual

lyFo

ur is

sues

of M

olat

o ex

tern

al n

ewsl

ette

r pro

duce

d an

d on

e N

tom

e Ts

ebe

inte

rnal

new

slet

ter p

rodu

ced.

Bu

dget

ary

cons

train

ts a

nd

Dep

artm

enta

l spl

it Bi

-mon

thly

info

rmat

ion

sess

ions

At le

ast 6

in

form

atio

n se

ssio

ns a

nnua

lly

Info

rmat

ion

sess

ions

hel

d w

ith a

ll th

e br

anch

es w

ith a

focu

s on

ch

ange

man

agem

ent d

ue to

the

DM

E sp

litSp

lit o

f the

DM

E re

prio

ritis

ed re

sour

ces

Build

stra

tegi

c al

lianc

es/

partn

ersh

ips

Impl

emen

tatio

n of

sig

ned

bila

tera

l ag

reem

ents

Impl

emen

tatio

n of

the

Inte

rnat

iona

l Eng

agem

ent

stra

tegy

4

The

rene

wab

le e

nerg

y el

emen

t of t

he s

trate

gy w

as

impl

emen

ted

thro

ugh

the

IREN

A in

volv

emen

t

SAD

C c

ompo

nent

impl

emen

ted

eg S

ADC

pow

er p

ool

Split

of t

he D

ME

repr

iorit

ised

reso

urce

s

Mon

itor a

nd e

valu

ate

the

stra

tegy

Cou

ntry

agr

eem

ents

and

MO

Us

wer

e ev

alua

ted

as p

art o

f the

re

prio

rtisa

tion

of a

ll co

untri

es o

f im

porta

nce

to th

e D

ME

Bu

ild s

trate

gic

allia

nces

/ pa

rtner

ship

s

Impl

emen

tatio

n of

sig

ned

bila

tera

l ag

reem

ents

Assi

st H

ydro

carb

ons

and

Min

eral

Pol

icy

in c

o-or

dina

ting

impl

emen

tatio

n

Achi

eved

Incr

ease

in n

umbe

r of

suc

cess

ful j

oint

in

itiat

ives

/ pro

ject

s w

ith s

take

hold

ers

Dev

elop

stra

tegi

es fo

r vu

lner

able

gro

ups

(HIV

/AID

S,

disa

bilit

y, g

ende

r and

you

th)

Esta

blis

h ba

selin

e an

d in

crea

se b

y 10

% (2

009)

Dra

ft yo

uth

and

gend

er s

trate

gies

hav

e be

en d

evel

oped

and

the

esta

blis

hmen

t of p

roje

ct b

asel

ines

def

erre

d to

the

nex

t fin

anci

al

year

Lack

of c

apac

ity to

col

late

al

l pro

ject

s

Incr

ease

num

ber

of s

ucce

ssfu

l joi

nt

initi

ativ

es/ p

roje

cts

with

sta

keho

lder

s

Impl

emen

t stra

tegi

es fo

r vu

lner

able

gro

ups

Esta

blis

h ba

selin

e an

d in

crea

se b

y 10

% (2

009)

This

will

be d

one

in th

e ne

w fi

nanc

ial y

ear o

nce

the

stra

tegi

es a

re

final

ised

and

app

rove

dSp

lit o

f the

DM

E re

prio

ritis

ed re

sour

ces

Mon

itor a

nd e

valu

ate

the

stra

tegi

esIn

crea

se in

pos

itive

m

edia

cov

erag

eIm

plem

ent m

edia

and

st

akeh

olde

r eng

agem

ent p

lan

and

mon

itor a

nd e

valu

ate

the

plan

Esta

blis

h ba

selin

e an

d in

crea

se b

y 25

% (2

009)

Med

ia a

nd s

take

hold

er e

ngag

emen

t pla

n im

plem

ente

d; th

e D

ME

held

a n

umbe

r of p

ress

con

fere

nces

incl

udin

g on

e on

IRP

and

the

Nor

ther

n C

ape

Sola

r Par

k

Exec

utio

n no

t mea

sure

d du

e to

bud

geta

ry

cons

train

ts a

nd

Dep

artm

enta

l spl

it

PROGRAMME 1

36

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-per

form

ance

Impr

ove

awar

enes

s an

d re

puta

tion

of

the

DM

E

Incr

ease

in D

MR

br

and

ratin

gIm

plem

enta

tion

of th

e m

arke

ting

plan

Es

tabl

ish

base

line

Com

mun

icat

ion

CD

faci

litat

ed a

cqui

sitio

n of

new

logo

s, b

rand

ed

stat

ione

ry in

cl le

tterh

eads

(int

erna

l and

ext

erna

l), in

tern

al m

emos

an

d fa

x co

vers

and

pro

mot

iona

l mat

eria

l inc

l pul

l-up

and

tear

drop

ba

nner

s on

tim

e th

roug

h G

CIS

as

part

of re

-bra

ndin

g th

e ne

w fo

r th

e D

epar

tmen

ts o

f Min

eral

Res

ourc

es a

nd E

nerg

y

Budg

etar

y co

nstra

ints

and

D

epar

tmen

tal s

plit

% im

plem

enta

tion

of th

e co

mm

unic

atio

n st

rate

gy

Mon

itor a

nd e

valu

ate

effe

ctiv

enes

s of

com

mun

icat

ion

stra

tegy

80%

200

9Po

st im

plem

enta

tion

eval

uatio

n an

d re

view

will

be d

one

in th

e ne

xt

finan

cial

yea

r Bu

dget

ary

cons

train

ts a

nd

Dep

artm

enta

l spl

it

Inte

rnal

Pro

cess

es

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

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ons

for u

nder

-pe

rfor

man

ce

Effic

ient

Bus

ines

s Pr

oces

ses

Dev

elop

con

sist

ent

mon

itorin

g &

enfo

rcem

ent

guid

elin

es

% o

f gui

delin

es is

sued

in

line

with

legi

slat

ion

Dev

elop

a re

view

fram

ewor

k fo

r po

licie

s an

d gu

idel

ines

Esta

blis

h ba

selin

eD

raft

guid

elin

e do

cum

ent d

evel

oped

and

will

be

circ

ulat

ed in

the

new

fina

ncia

l yea

r for

fina

l inp

uts

by

the

new

Dep

artm

ents

Hum

an R

esou

rce

cons

train

ts a

nd

Dep

artm

enta

l spl

itIm

plem

ent t

he fr

amew

ork

Mon

itor a

nd e

valu

ate

Red

uctio

n in

com

plai

nts

rela

ting

to p

roce

dura

l in

cons

iste

ncy

Dev

elop

com

plia

nce

regi

ster

Esta

blis

h ba

selin

e 20

09SR

M d

evel

oped

pol

icie

s an

d pr

oced

ures

regi

ster

whi

ch

is a

men

ded

whe

n br

anch

es a

nd C

hief

Dire

ctor

ates

am

end

and/

or d

evel

op n

ew p

olic

ies

and

proc

edur

esIm

plem

enta

tion

of

rele

vant

legi

slat

ion/

po

licie

s/ p

roce

sses

Red

uctio

n in

% n

on-

com

plia

nce

issu

es

(inte

rnal

)

Impl

emen

t aud

it re

com

men

datio

ns10

% o

f pre

viou

s ye

ar’s

audi

t qu

erie

s

All p

rior y

ear a

udit

findi

ngs

impl

emen

ted

% im

prov

emen

t in

st

akeh

olde

r com

plia

nce

(ext

erna

l)

Dev

elop

com

plia

nce

mat

rixEs

tabl

ish

base

line

2009

Com

plia

nce

Fram

ewor

k de

velo

ped,

app

rove

d an

d im

plem

ente

d

Rev

iew

and

dev

elop

po

licie

s, p

roce

dure

s an

d gu

idel

ines

Num

ber o

f pol

icie

s,

proc

edur

es a

nd

guid

elin

es d

evel

oped

Polic

y an

d st

anda

rds

audi

t to

dete

rmin

e th

e ba

selin

eEs

tabl

ish

base

line

(revi

ew)

All p

roce

dure

s w

ere

revi

ewed

and

fina

lised

for

Cor

pora

te S

ervi

ces

Fina

lised

at t

he e

nd o

f O

ctob

er 2

009

Iden

tify

gaps

Addr

ess

the

gaps


37

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-pe

rfor

man

ceAl

ign,

sta

ndar

dise

po

licie

s an

d in

itiat

e au

tom

atio

n of

pr

oces

ses

% p

olic

ies

and

proc

edur

es s

tand

ardi

sed

Wor

ksho

ps a

nd is

sue

of g

uide

lines

Impl

emen

tatio

n of

gu

idel

ines

200

9D

evel

oped

dra

ft gu

idel

ine

on th

e de

velo

pmen

t and

am

endm

ent o

f pol

icie

s an

d pr

oced

ures

Bu

dget

ary

cons

train

ts

and

Dep

artm

enta

l spl

itPo

licy

and

stan

dard

s au

dit t

o de

term

ine

the

base

line

30%

200

9

Iden

tify

gaps

Addr

ess

the

gaps

Alig

n, s

tand

ardi

se

polic

ies

and

initi

ate

auto

mat

ion

of

proc

esse

s

% p

roce

dure

s al

igne

d w

ith p

olic

ies

Audi

t to

iden

tify

num

ber o

f pr

oced

ures

to b

e es

tabl

ishe

dEs

tabl

ish

base

line

(revi

ew)

This

will

be d

one

once

the

guid

elin

e fo

r pol

icy

deve

lopm

ent a

nd re

view

has

bee

n ap

prov

edD

evel

opm

ent a

nd im

plem

enta

tion

of

proc

edur

es

Effe

ctiv

e Se

rvic

e D

eliv

ery

Allo

catio

n of

ap

prop

riate

re

sour

ces

% a

lignm

ent o

f res

ourc

es

to o

pera

tiona

l nee

dsAl

ign

busi

ness

pla

ns w

ith E

NE

Min

imun

65%

al

ignm

ent

All p

roce

dure

s fo

r Cor

pora

te S

ervi

ces

wer

e re

view

ed

and

docu

men

ted

as p

art o

f the

DM

E sp

litH

uman

reso

urce

and

bu

dget

ary

cons

train

ts

Build

acc

ount

abilit

y%

Impl

emen

tatio

n of

th

e Ba

lanc

ed S

core

card

(B

SC)

Dev

elop

and

impl

emen

t BSC

im

plem

enta

tion

Plan

100%

Achi

eved

. BSC

-bas

ed b

usin

ess

plan

s fo

rm th

e ba

sis

for p

erfo

rman

ce re

porti

ng in

the

Dep

artm

ent

Cus

tom

ise

or b

uild

new

IT s

yste

m

to s

uppo

rt BS

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porti

ngD

efer

red

to th

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xt fi

nanc

ial y

ear

Del

ayed

by

split

of

the

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artm

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all

man

ager

s un

ders

tand

th

e re

quire

men

ts o

f the

BS

C m

etho

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gyC

asca

ding

of B

SC to

all

leve

lsD

efer

red

to th

e ne

xt fi

nanc

ial y

ear

Del

ayed

by

split

of t

he

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artm

ent

% o

f del

egat

ion

of

auth

ority

app

rove

dG

ap a

naly

sis

of re

quire

d de

lega

tion

Esta

blis

h ba

selin

e 20

09Al

l HR

M d

eleg

atio

n in

term

s of

Pub

lic S

ervi

ce A

ct a

nd

Publ

ic S

ervi

ce R

egul

atio

ns in

pla

ceFi

nalis

ed i

n 20

06

Com

pile

and

app

rove

rele

vant

de

lega

tion

Com

mun

icat

e D

eleg

atio

ns to

re

quis

ite c

ompo

nent

sD

eleg

atio

ns in

term

s of

Pub

lic S

ervi

ce A

ct a

nd

Reg

ulat

ions

wer

e de

velo

ped,

impl

emen

ted

and

com

mun

icat

ed

PROGRAMME 1

38

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-pe

rfor

man

ceBu

ild a

ccou

ntab

ility

% o

f app

rove

d de

lega

tion

of a

utho

rity

impl

emen

ted

Cre

ate

awar

enes

s of

app

rove

d de

lega

tion

60%

200

9H

RM

impl

emen

ted

dele

gatio

n af

ter a

ppro

val

Fina

lised

Com

pile

and

com

plet

e co

mpl

ianc

e ch

eckl

ist

Fina

lised

Mee

t cus

tom

er /

stak

ehol

der n

eeds

Cus

tom

er s

atis

fact

ion

Dev

elop

a C

S cu

stom

er s

urve

yM

inim

um 6

0%D

efer

red

to th

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nanc

ial y

ear

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of t

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ME

repr

iorit

ised

reso

urce

sIm

plem

ent s

urve

y

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blis

h su

rvey

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lts

Impl

emen

t rem

edia

l act

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Dev

elop

and

m

anag

e se

rvic

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vel a

gree

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ts

% v

ette

d SL

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nchm

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SLAs

aga

inst

bes

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actic

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tern

al 1

00%

SLA

on D

ME

split

and

sha

ring

of/h

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g C

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rvic

es b

y D

MR

vet

ted

by L

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Ser

vice

sN

o of

SLA

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tabl

ishe

d be

twee

n C

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d br

anch

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Det

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ine

area

s w

here

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e re

quire

d, O

ffice

of D

DG

to

cons

olid

ate

1 co

nsol

id-a

ted

SLA

per a

nnum

Don

e

% a

dher

ence

to S

LAs

Impl

emen

t and

revi

ew c

ompl

ianc

e w

ith S

LAs

100%

Esta

blis

h an

d im

plem

ent s

ervi

ce

stan

dard

s

% s

tand

ards

est

ablis

hed

Dev

elop

and

impl

emen

t SD

IP60

%SD

IP d

evel

oped

and

incl

uded

in th

e ap

prov

ed s

trate

gic

plan

doc

umen

t

Und

erst

and

cust

omer

/ st

akeh

olde

r nee

ds

and

expe

ctat

ions

No

of s

urve

ys c

ondu

cted

to

und

erst

and

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sC

omm

unic

atio

n an

d Sp

ecia

l Pr

ojec

ts to

con

solid

ate

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pile

1 co

nsol

id-a

ted

surv

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er a

nnum

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surv

eys

cond

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ut D

epar

tmen

t use

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l ho

tline

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ries

and

GC

IS s

urve

y to

un

ders

tand

cus

tom

er n

eeds

Budg

etar

y an

d ca

paci

ty c

onst

rain

ts

Stak

ehol

der a

nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

t St

reng

then

an

d m

aint

ain

rela

tions

hips

Freq

uenc

y of

wor

ksho

ps

and

info

rmat

ion

sess

ions

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nven

ed

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mun

icat

ion

Chi

ef D

irect

orat

e to

co

-ord

inat

e se

ssio

nsM

in 1

per

fu

nctio

nal a

rea

per

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m

Mor

e th

an 1

0 in

form

atio

n se

ssio

ns in

the

diffe

rent

pr

ovin

ces

inco

rpor

ated

into

the

switc

h-on

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cted

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ring

the

year

und

er re

view

Budg

etar

y co

nstra

ints

di

ctat

ed th

at it

can

not

be d

one

as a

sta

nd

alon

e pr

ojec

tM

anag

e cu

stom

er/

stak

ehol

der

expe

ctat

ions

% ra

ting

on c

lient

sa

tisfa

ctio

n su

rvey

Dev

elop

clie

nt s

atis

fact

ion

surv

ey60

%N

o su

rvey

was

con

duct

ed, b

ut th

e D

epar

tmen

t use

d th

e Pr

esid

entia

l hot

line

quer

ies

and

GC

IS s

urve

y to

un

ders

tand

cus

tom

er n

eeds

Budg

etar

y an

d ca

paci

ty c

onst

rain

tsAn

alys

e re

spon

ses

to s

urve

y


39

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-pe

rfor

man

ceIm

prov

e co

nsul

tatio

n an

d fe

edba

ckFr

eque

ncy

of w

orks

hops

an

d in

form

atio

n se

ssio

ns

conv

ened

Com

mun

icat

ion

Chi

ef D

irect

orat

e to

co

-ord

inat

e se

ssio

nsM

in 1

per

fu

nctio

nal a

rea

per

annu

m

Und

erto

ok 2

info

rmat

ion

sess

ions

in K

ZN a

nd

Nor

thw

est P

rovi

nces

Budg

etar

y co

nstra

ints

Driv

e in

nova

tion

% o

f inn

ovat

ion

proj

ects

impl

emen

ted

(impr

ovem

ent i

n th

e w

ay

we

do b

usin

ess)

Inde

ntify

pot

entia

l inn

ovat

ion

proj

ects

20%

per

ann

um

Con

cept

ualis

e, s

tream

line

and

impl

emen

t mos

t via

ble

proj

ects

Lear

ning

and

Gro

wth

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-per

form

ance

Driv

e tra

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% p

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pent

on

targ

eted

gro

ups

Info

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uppl

iers

to re

gist

er

on d

atab

ase

50%

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is d

one

by th

e SC

M u

nit i

n th

e C

FO b

ranc

h

% im

prov

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t in

empl

oym

ent

equi

tyIm

plem

enta

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of E

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e %

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E EE

pla

n Se

e H

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bles

bel

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lead

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agem

ent

capa

bilit

ies

% o

f man

ager

s co

mpl

eted

Le

ader

ship

& M

anag

emen

t co

urse

s

Exte

nsio

n of

WIT

S pr

ogra

mm

e70

% p

er a

nnum

67%

of m

iddl

e m

anag

emen

t pro

gram

mes

su

cces

sful

ly im

plem

ente

dBu

dget

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stra

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% re

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on

inve

stm

ent o

n tra

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g an

d de

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0˚ s

urve

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sses

smen

t to

olM

in 6

5%Ex

tens

ion

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ved

for E

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45%

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and

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ente

dBu

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ints

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ct, d

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in s

taff

% re

duct

ion

in s

taff

turn

over

ra

teIm

plem

enta

tion

of th

e H

R

Plan

2% p

er a

nnum

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tabl

es b

elow

% re

duct

ion

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er a

nnum

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ct, d

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taff

% im

plem

enta

tion

of P

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that

ar

e al

igne

d w

ith D

epar

tmen

tal

need

s

Impl

emen

t HR

D p

lan

Esta

blis

h ba

selin

e an

d im

plem

ent a

t le

ast 5

0% in

200

9

90%

of t

he W

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impl

emen

ted

•N

on- a

ttend

ance

•

10%

of 2

009’

10

WSP

pro

gram

mes

ha

ve n

ot b

een

impl

emen

ted

due

to

budg

et c

onst

rain

ts

Dev

elop

Inte

grat

ed

know

ledg

e m

anag

emen

t sys

tem

% c

ompl

etio

n of

kno

wle

dge

man

agem

ent s

yste

ms

fram

ewor

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h ta

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am h

eade

d by

Com

mun

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Chi

ef

Dire

ctor

ate

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erre

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the

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fina

ncia

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lit o

f Dep

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d de

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p IT

pla

tform

PROGRAMME 1

40

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/reas

ons

for u

nder

-per

form

ance

% im

plem

enta

tion

of k

now

ledg

e m

anag

emen

t sys

tem

Pla

nU

pdat

e kn

owle

dge

man

agem

ent s

yste

m50

%W

ill be

don

e on

ce fr

amew

ork

is in

pla

ce a

nd

appr

oved

Live

cor

e va

lues

% in

crea

se in

nom

inat

ions

for

the Ba

tho�Pe

le a

nd U

bunt

u aw

ards

Prom

otio

n of

aw

ards

sys

tem

an

d lin

k w

ith v

alue

s50

% 2

009

Nom

inat

ions

rece

ived

and

Loc

al M

oder

atin

g

Com

mitt

ee s

ched

uled

for 1

1/02

/201

0N

one

Num

ber o

f cor

e va

lue

awar

enes

s se

ssio

ns

DM

E va

lues

aw

aren

ess

w

orks

hops

M

inim

um 2

per

an

num

Not

yet

impl

emen

ted

Budg

et c

onst

rain

ts a

nd

split

of D

epar

tmen

tLi

ve c

ore

valu

es%

dec

reas

e in

num

ber o

f tra

nsgr

essi

ons

DM

E C

ode

of C

ondu

ct

wor

ksho

ps5%

Ref

er to

HR

tabl

es

Cus

tom

ise

indu

ctio

n to

in

clud

e C

ode

of C

ondu

ct

Fina

nce

Alig

n bu

dget

with

st

rate

gy%

of b

udge

t alig

ned

with

bra

nch

stra

tegi

c pr

iorit

ies

D

evel

op s

pend

ing

plan

s in

co

njun

ctio

n w

ith fi

nanc

e10

0%Sp

endi

ng p

lans

tabl

ed a

t Dep

artm

ent B

udge

t C

omm

ittee

N

one

Opt

imis

e as

set

utilis

atio

n (a

sset

s -

PFM

A)

Red

uce

redu

ndan

t ass

ets

(phy

sica

l) Im

plem

ent a

sset

m

aint

enan

ce a

nd d

ispo

sal

stra

tegy

Iden

tify

redu

ndan

t as

sets

and

redu

ce

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e by

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et m

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t in

Supp

ly C

hain

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irect

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e

Man

age

cost

s ef

fect

ivel

yR

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tion

in c

onfir

med

frui

tless

, w

aste

ful a

nd u

naut

horis

ed

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nditu

re (B

ranc

h)

Atte

nd w

orks

hops

arr

ange

d an

d co

nduc

ted

by C

FO’s

Offi

ce

100%

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e

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pond

to id

entif

ied

inci

dent

s w

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CFO

offi

cetim

efra

mes

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e

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ctiv

ely

man

age

budg

et%

bud

get v

aria

nce

(Bra

nch)

Mon

itor a

ctua

l exp

endi

ture

ag

ains

t bud

get (

spen

ding

pl

ans)

5% 2

009

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budg

et v

aria

nce

is h

ighe

r tha

n 5%

Dep

artm

ent s

plit

forc

ed

new

prio

ritie

s w

hich

re

quire

mor

e re

sour

ces

Prom

ote

Cor

pora

te

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erna

nce

% c

ompl

ianc

e w

ith P

FMA

Impl

emen

t com

plia

nce

fram

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k10

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ompl

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e fra

mew

ork

deve

lope

d an

d ap

prov

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y bo

th M

inis

ters

Ap

prov

ed s

ubm

issi

ons


41

SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

T PL

AN

S

Bra

nch:

Cor

pora

te S

ervi

ces

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

09)

Des

ired

Stan

dard

(200

9’10

)Pr

ogre

ss a

s at

31

Mar

ch 2

010

Secu

rity

Ris

k M

anag

emen

tD

evel

op a

nd

impl

emen

t Phy

sica

l an

d In

telle

ctua

l Ris

k Pl

an

DM

E pe

rson

nel a

nd

visi

tors

Qua

ntity

Ensu

re im

plem

enta

tion

of

min

imum

info

rmat

ion

Secu

rity

Stan

dard

s (M

ISS)

Phys

ical

Sec

urity

In

form

atio

n Se

curit

y Pe

rson

nel S

ecur

ityC

omm

unic

atio

n Se

curit

y

Qua

ntity

St

anda

rdis

ed s

ecur

ity

as p

er S

APS

and

NIA

se

curit

y re

com

men

datio

ns

DM

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curit

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as 8

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tand

ardi

sed

as p

er

SAPS

and

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sec

urity

reco

mm

enda

tions

Qua

lity

Hig

h le

vel o

f unc

erta

inty

Q

ualit

yR

educ

tion

of ri

skR

isks

to th

e D

epar

tmen

t wer

e si

gnifi

cant

ly

redu

ced

Con

sulta

tion

Nat

iona

l Int

ellig

ence

Age

ncy

and

Sout

h Af

rican

Pol

ice

Serv

ices

Con

sulta

tion

Nat

iona

l Int

ellig

ence

Ag

ency

and

Sou

th A

frica

n Po

lice

Serv

ices

Con

sulta

tions

with

NIA

and

SAP

S w

ere

impr

oved

whi

ch h

ad a

pos

itive

impa

ct o

n tu

rnar

ound

tim

es s

uch

as p

erso

nnel

sui

tabi

lity

chec

ks)

Acce

ssPr

esen

tatio

ns o

f sec

urity

aw

aren

ess

Acce

ssO

ffici

als

taki

ng

resp

onsi

bilit

y fo

r th

e se

curit

y of

thei

r po

sses

sion

s an

d th

eir

own

secu

rity

Sign

ifica

nt p

rogr

ess

with

offi

cial

s ta

king

re

spon

sibi

lity

for t

heir

secu

rity,

suc

h as

few

er

unlo

cked

offi

ces

afte

r hou

rs a

nd d

urin

g th

e da

y w

hen

offic

ials

are

not

in th

eir o

ffice

s

PROGRAMME 1

42

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

09)

Des

ired

Stan

dard

(200

9’10

)Pr

ogre

ss a

s at

31

Mar

ch 2

010

Cou

rtesy

Orie

ntat

ion

of n

ew e

mpl

oyee

s an

d se

curit

y re

port

at E

XCO

Cou

rtesy

Seni

or m

anag

ers

atte

ndin

g o

rient

atio

n pr

ogra

mm

esO

pen

and

trans

pare

nt

Mos

t offi

cial

s un

ders

tand

sec

urity

on

ly a

t acc

ess

cont

rol p

oint

s O

pen

and

trans

pare

ntTo

tal u

nder

stan

ding

of

Min

imum

Info

rmat

ion

Secu

rity

Stan

dard

s (M

ISS)

MIS

S do

cum

ent s

umm

aris

ed fo

r all

empl

oyee

s to

read

and

fam

iliaris

e th

emse

lves

with

the

cont

ent a

nd w

ill be

pos

ted

on th

e In

trane

t

Info

rmat

ion

Secu

rity

polic

y on

the

Intra

net

Info

rmat

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Secu

rity

guid

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es a

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proc

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artic

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43

Key

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vice

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ndar

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Des

ired

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dard

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rmat

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Con

tinue

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iew

PROGRAMME 1

44

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

09)

Des

ired

Stan

dard

(200

9’10

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oney

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oney

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e ec

onom

ic e

mpo

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men

t of v

ulne

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oups

pa

rtici

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he p

artic

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e Pr

ovin

cial

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onom

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evel

opm

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r ena

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as a

ppre

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ucte

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r us

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45

Key

Ser

vice

Serv

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Ben

efic

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Cur

rent

Sta

ndar

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Des

ired

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h th

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istry

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Inte

rnet

)

PROGRAMME 1

46

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

09)

Des

ired

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dard

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ogre

ss a

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ch 2

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ate

repo

rts to

E

XCO

dur

ing

Dire

ctor

ate

mee

tings

Red

ress

Prov

ide

EXC

O w

ith

repo

rts o

n al

l stra

tegi

c m

edia

issu

es re

late

d to

the

Dep

artm

ent a

nd

sect

or


47

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

09)

Des

ired

Stan

dard

(200

9’10

)Pr

ogre

ss a

s at

31

Mar

ch 2

010

Valu

e fo

r m

oney

All c

omm

unic

atio

n se

rvic

es

offe

red

with

in ‘V

alue

for m

oney

’ co

ncep

t, bu

t not

pos

sibl

e w

hen

requ

ests

rece

ived

late

, whi

ch

redu

ces

time

and

abilit

y to

sec

ure

valu

e fo

r the

mon

ey u

sed

Valu

e fo

r m

oney

Prop

erly

pro

cure

d se

rvic

es to

ens

ure

Valu

e fo

r mon

ey

Succ

essf

ully

pro

cure

d:

• Se

rvic

es fo

r thr

ee p

ublic

par

ticip

atio

ns

or im

bizo

s w

hich

are

repo

rted

in th

e pe

rform

ance

repo

rt ab

ove

• Ba

nner

s fo

r mar

ketin

g an

d br

andi

ng

purp

oses

• D

STV

serv

ices

for M

inis

ter a

nd D

G•

Plas

ma

scre

en fo

r Min

iste

r and

DG

for

med

ia m

onito

ring

purp

oses

• N

ewsp

aper

s fo

r med

ia m

onito

ring

purp

oses

• Ph

otos

of o

ffice

bea

rers

Faci

litat

ed p

rocu

rem

ent o

f Min

iste

rs’ 2

009

year

end

card

sVa

lue

for

mon

eyAl

l com

mun

icat

ion

serv

ices

of

fere

d w

ithin

‘Val

ue fo

r mon

ey’

conc

ept,

but n

ot p

ossi

ble

whe

n re

ques

ts re

ceiv

ed la

te, w

hich

re

duce

s tim

e an

d ab

ility

to s

ecur

e va

lue

for t

he m

oney

use

d

Valu

e fo

r m

oney

Prop

erly

pro

cure

d se

rvic

es to

ens

ure

Valu

e fo

r mon

ey

Tim

eEn

d M

arch

201

0Ti

me

12 m

onth

sC

ost

As p

er b

udge

t allo

catio

nC

ost

Mor

e pr

oact

ive

invo

lvem

ent i

n bu

dget

ing

proc

ess

to e

nsur

e al

loca

tion

is a

ligne

d w

ith

prio

ritie

sH

uman

R

esou

rces

Exis

ting

pers

onne

lH

uman

R

esou

rces

Exis

ting

pers

onne

l

PROGRAMME 1

48

PRO

GR

AM

ME

1.1:

CH

IEF

FIN

AN

CIA

L O

FFIC

E

Purp

ose:

To

prov

ide

adm

inis

trativ

e su

ppor

t to

the

Min

istry

and

the

Dep

artm

ent w

ith re

gard

to fi

nanc

ial,

syst

ems

deve

lopm

ent a

nd m

aint

enan

ce, i

nfor

mat

ion

and

supp

ly c

hain

man

agem

ent

Chi

ef F

inan

cial

Off

ice

stra

tegi

c ob

ject

ives

:

• To

cre

ate

cond

ition

s fo

r sus

tain

able

gro

wth

and

dev

elop

men

t for

the

bene

fit o

f all

Sout

h Af

rican

s•

To c

reat

e an

ena

blin

g en

viro

nmen

t aim

ed a

t sup

porti

ng th

e de

velo

pmen

t and

impl

emen

tatio

n of

pol

icie

s an

d le

gisl

atio

n (N

EW)

Stak

ehol

der/C

usto

mer

Mea

sure

s

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-per

form

ance

Impr

ove

turn

arou

nd

times

Ackn

owle

dge-

men

t of

quer

ies

Dev

elop

a q

uery

man

agem

ent s

yste

mFi

ve w

orki

ng

days

•Sy

stem

for a

ckno

wle

dgin

g ex

tern

al q

uerie

s in

pla

ce

in th

e C

FO’s

offic

e•

Aver

age

turn

arou

nd ti

me

for a

ckno

wle

dgin

g qu

erie

s an

d co

mpl

aint

s is

five

day

s%

adh

eren

ce to

legi

slat

ed

time-

fram

esD

evel

op a

nd p

ublis

h a

cale

ndar

of

legi

slat

ive

timef

ram

es10

0%R

epor

ting

cale

ndar

dev

elop

ed a

nd p

ublis

hed

% a

dher

ence

to d

efin

ed

turn

arou

nd ti

mes

Def

ine

turn

arou

nd ti

me

for a

ll pr

oces

ses

100%

Stan

dard

turn

arou

nd ti

me

defin

ed a

nd s

ervi

ce c

atal

ogue

de

velo

ped;

Impl

emen

tatio

n do

ne b

y EM

and

FPM

ASu

bmit

mon

thly

repo

rts o

n ac

hiev

emen

t of t

urna

roun

d tim

eSy

stem

effe

ctiv

e Fe

brua

ry 2

010

with

mon

thly

repo

rts

subm

itted

end

Feb

ruar

y 20

10

Prov

ide

clea

r int

erna

l ad

min

istr

ativ

e po

licie

s an

d pr

oced

ures

Impr

ovem

ent i

n t E

xter

nal

Audi

t Rep

ort

Red

uce

the

num

ber o

f rep

orta

ble

audi

t que

ries

No

emph

asis

of

mat

ter

A cl

ean

audi

t rep

ort r

ecei

ved

for 2

008’

09 fi

nanc

ial y

ear

Adm

inis

trativ

e pr

oces

ses

and

polic

ies

publ

ishe

dD

evel

op p

ocke

t han

d bo

oks

for

appr

oved

pol

icie

s80

%Ac

hiev

ed. P

ocke

t han

dboo

ks c

ould

not

be

deve

lope

d bu

t app

rove

d po

licie

s pu

blis

hed

on In

trane

tD

ue to

cos

t con

tain

men

t m

easu

res

and

split

of t

he

Dep

artm

ent,

focu

s ch

ange

d to

pub

lishi

ng o

n In

trane

tPu

blis

h al

l int

erna

l pro

cess

es o

n th

e In

trane

tPr

oced

ures

and

pro

cess

es fo

r app

rove

d po

licie

s pu

blis

hed

on th

e In

trane

t


49

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-per

form

ance

Prov

ide

cred

ible

and

ac

cess

ible

in

form

atio

n

% ta

rget

aud

ienc

e re

ache

dId

entif

y ta

rget

ed a

udie

nce

70%

Targ

et a

udie

nce

iden

tifie

d by

all

Dire

ctor

sSu

bmit

mon

thly

repo

rts o

n nu

mbe

r of

targ

et a

udie

nces

reac

hed

•C

heck

list d

evel

oped

of i

nfor

mat

ion

subm

itted

to

targ

et a

udie

nces

•C

heck

list s

igne

d of

f by

Dire

ctor

s an

d su

bmitt

ed to

C

FO%

impr

ovem

ent i

n sy

stem

s av

aila

bilit

ySe

t-up

mon

itorin

g to

ols

80%

The

follo

win

g m

onito

ring

tool

s ar

e in

pla

ce:

•W

AN: S

ITA

repo

rts

• Se

rver

s: E

ye o

f the

Sto

rm to

mon

itor a

vaila

bilit

y of

se

rver

s•

Switc

hes:

Eye

of t

he S

torm

•Ap

plic

atio

n an

d da

taba

se: L

og fi

les

• 98

% s

yste

ms

avai

labi

lity

at 3

1 M

arch

201

0

Subm

it m

onth

ly re

ports

on

syst

ems

avai

labi

lity

Com

plet

ed

Bui

ld s

trat

egic

al

lianc

es/

part

ners

hips

Num

ber o

f agr

eem

ents

si

gned

and

impl

emen

ted

Iden

tify

stra

tegi

c pa

rtner

s12

Com

plet

ed

Dev

elop

and

sig

n co

-ope

rativ

e ag

reem

ents

Def

erre

d to

the

next

fina

ncia

l yea

rSp

lit o

f the

Dep

artm

ent:

•R

esou

rces

real

loca

ted

to fo

cus

on th

e sp

lit•

Co-

oper

ativ

e ag

reem

ents

wou

ld n

ot

have

bee

n ef

fect

ive

due

to s

epar

atio

n of

ac

tiviti

es.

Effic

ient

bus

ines

s pr

oces

ses

Dev

elop

co

nsis

tent

m

onito

ring

and

enfo

rcem

ent

guid

elin

es/

proc

edur

es

Proc

edur

es is

sued

in li

ne

with

app

rove

d po

licy

Alig

n pr

oced

ures

with

pol

icie

s10

0%C

ompl

eted

Red

uctio

n in

com

plai

nts

rela

ting

to p

roce

dura

l in

cons

iste

ncy

Dev

elop

a c

entra

l reg

iste

r of

com

plai

nts

90%

Reg

iste

r of c

ompl

aint

s fo

r dire

ctor

ates

by

1 M

arch

201

0

Com

mun

icat

e th

e co

mpl

aint

s pr

oces

s an

d m

onito

r pro

gres

sC

ompl

eted

PROGRAMME 1

50

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-per

form

ance

Impl

emen

tatio

n of

rele

vant

le

gisl

atio

n an

d po

licie

s

Red

uctio

n in

% n

on-

com

plia

nt is

sues

repo

rted

Impl

emen

tatio

n of

pro

cure

men

t pla

n40

%Pr

ocur

emen

t pla

n in

pla

ce fo

r the

CFO

’s of

fice

Mai

ntai

n an

d m

onito

r pro

gres

s re

port

on ir

regu

lar,

fruitl

ess

and

was

tefu

l ex

pend

iture

Reg

iste

r for

irre

gula

r, fru

itles

s an

d w

aste

ful e

xpen

ditu

re

up to

dat

e

Benc

hmar

k ag

ains

t bes

t pr

actic

e

% s

tand

ards

that

mee

t bes

t pr

actic

eId

entif

y re

leva

nt s

tand

ards

50%

IT p

olic

ies

deve

lope

d in

line

with

Cob

it, IT

IL, P

MBO

K an

d IS

O 1

7799

sta

ndar

dsAl

ign

proc

esse

s w

ith b

est p

ract

ice

Com

plet

ed

Rev

iew

and

st

ream

line

polic

ies

and

proc

esse

s

% p

olic

ies

& pr

oced

ures

st

anda

rdis

edR

evie

w id

entif

ied

polic

ies

50%

No

polic

ies

due

for r

evie

w

% p

roce

dure

s al

igne

d w

ith

polic

ies

Rev

iew

iden

tifie

d pr

oced

ures

and

al

igne

d w

ith p

olic

ies

70%

Not

don

eSp

lit o

f the

Dep

artm

ent

Effe

ctiv

e se

rvic

e de

liver

yAl

loca

te

appr

opria

te

reso

urce

s

Res

ourc

es a

lloca

ted

in li

ne

with

ope

ratio

nal n

eeds

Adop

t prio

rity-

driv

en b

udge

t allo

catio

n80

%C

ompl

eted

Build

ac

coun

tabi

lity

% im

plem

enta

tion

of th

e BS

CAl

ign

Busi

ness

Pla

n w

ith s

trate

gic

plan

100%

Com

plet

ed

Bui

ld a

nd

man

age

serv

ice

leve

l ag

reem

ents

% v

ette

d SL

AsN

/AN

/A

% o

f ide

ntifi

ed S

LAs

sign

edId

entif

y cr

itica

l ser

vice

s th

at re

quire

SL

As; s

ign

and

regi

ster

all

iden

tifie

d SL

As

70%

Com

plet

ed

SLAs

sig

ned

with

four

trav

el a

genc

ies

in M

arch

201

0

% a

dher

ence

to s

igne

d SL

AsEs

tabl

ish

and

mon

itor a

repo

rting

m

echa

nism

for a

dher

ence

to S

LAs

100%

No

form

al m

onito

ring

and

repo

rting

mec

hani

sm

esta

blis

hed;

mon

itorin

g an

d re

porti

ng d

one

by e

xcep

tion

Res

ourc

es re

allo

cate

d to

focu

s on

spl

it of

D

epar

tmen

tEs

tabl

ish

serv

ice

stan

dard

Stan

dard

s es

tabl

ishe

dD

evel

op a

nd im

plem

ent S

DIP

100%

Com

plet

ed

Und

erst

and

cust

omer

nee

dsSu

rvey

con

duct

ed to

un

ders

tand

nee

dsEs

tabl

ish

clie

ntel

e an

d co

nduc

t sur

vey

to u

nder

stan

d ne

eds

1 pe

r ann

umSu

rvey

com

plet

ed fo

r Inf

orm

atio

n Te

chno

logy

(IT)

, Su

pply

Cha

in M

anag

emen

t (SC

M) a

nd S

yste

ms

Dev

elop

men

t and

Man

agem

ent (

SDM

)G

AP A

naly

sis

Rep

ort

Rec

onci

le c

urre

nt s

tand

ards

with

su

rvey

resu

lts1

per a

nnum

Com

plet

ed

Stak

ehol

der a

nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

t


51

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-per

form

ance

Educ

ate

and

empo

wer

cl

ient

s

Wor

ksho

ps o

f app

rove

d po

licie

sD

evel

op a

nd im

plem

ent

com

mun

icat

ion

stra

tegy

for p

olic

ies

4D

evel

oped

; im

plem

enta

tion

dela

yed

due

to th

e sp

lit o

f D

epar

tmen

t and

del

ays

in s

ign-

off o

n po

licie

s

Si

gned

Ope

ratin

g Le

vel

Agre

emen

ts (O

LAs)

Dev

elop

and

sig

n O

LAs

1 br

anch

per

an

num

Not

com

plet

edR

esou

rces

real

loca

ted

to fo

cus

on s

plit

of

Dep

artm

ent

Man

age

cust

omer

/ st

akeh

olde

r ex

pect

atio

ns

% ra

ting

on c

lient

sa

tisfa

ctio

n su

rvey

Con

duct

cus

tom

er s

atis

fact

ion

surv

ey

base

d on

sig

ned

OLA

s60

%N

ot c

ompl

eted

R

esou

rces

real

loca

ted

to fo

cus

on s

plit

of

Dep

artm

ent

Impr

ove

cons

ulta

tion,

fe

edba

ck a

nd

acce

ssib

ility

Freq

uenc

y of

con

sulta

tion

and

feed

back

ses

sion

sFa

cilit

ate

feed

back

ses

sion

s2

Com

plet

ed; p

rese

ntat

ion

at o

rient

atio

n an

d to

pr

ocur

emen

t cha

mpi

ons;

pres

enta

tion

of b

udge

t; pr

oces

ses

to th

e Br

anch

es

Driv

e in

nova

tion

% o

f inn

ovat

ion

proj

ects

im

plem

ente

d Id

entif

y an

d im

plem

ent i

nnov

ativ

e pr

ojec

ts20

%In

nova

tive

inpu

ts re

ceiv

edD

one,

com

petit

ion

clos

ed

15 A

ugus

t 200

9; to

be

repe

ated

sin

ce in

puts

wer

e in

adeq

uate

Cre

ate

enab

ling

envi

ronm

ent f

or

inno

vatio

nLe

arni

ng a

nd G

row

th

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-pe

rfor

man

ceD

evel

op a

nd

reta

in s

taff

% re

duct

ion

in s

taff

turn

over

ra

te

Rew

ardi

ng o

f per

form

ance

2%As

sess

men

t don

e an

d fo

rwar

ded

to H

R o

n tim

e an

d bo

nuse

s pa

id to

all

entit

led

Aver

age

staf

f tur

nove

r rat

e du

ring

repo

rting

per

iod

was

15

.38

%

Dev

elop

men

t of s

uper

viso

ry a

nd

man

agem

ent c

apab

ilitie

sD

one;

12

supe

rvis

ory

leve

l (7-

8) a

ttend

ed th

e M

anag

emen

t D

evel

opm

ent P

rogr

amm

e Tr

ain

staf

fD

one;

em

ploy

ees

expo

sed

to th

e fo

llow

ing

train

ing

inte

rven

tions

: BAS

/Per

sal,

Logi

s Tr

aini

ng, C

usto

mer

Se

rvic

e, A

ctiv

e D

irect

ory,

SC

OA

, HE

AT, P

roje

ct

Man

agem

ent,

SCM

, Cor

pora

te M

odel

, Sec

reta

rial C

ours

e an

d In

tend

a Tr

aini

ng

PROGRAMME 1

52

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

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Con

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Fill

all p

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3 m

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The

Bran

ch h

ad 4

3 va

cant

pos

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t end

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nder

re

view

% im

plem

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Pers

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men

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(PD

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ligne

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D

epar

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eeds

Dev

elop

PD

P fo

r eve

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mpl

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50%

Don

e; P

DP

deve

lope

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r all

empl

oyee

s an

d ot

her t

rain

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need

s no

t par

t of P

DP

subm

itted

to H

RD

; 83

staf

f mem

bers

fro

m B

ranc

h at

tend

ed c

ours

es to

enh

ance

per

form

ance

Build

relia

ble

and

resp

onsi

ve

IT p

latfo

rm

Impl

emen

t app

rove

d D

isas

ter R

ecov

ery

Plan

(D

RP)

/BC

P

Dev

elop

, app

rove

and

impl

emen

t D

RP

100%

co

mpl

ianc

e w

ith p

lan

Dev

elop

ed D

PR; u

nder

goin

g ap

prov

al p

roce

ss; b

acku

p pr

oces

s an

d of

fsite

sto

rage

hav

e be

en im

plem

ente

d

% im

plem

ent o

f rev

iew

ed

Mas

ter S

yste

ms

Plan

(MSP

)R

evie

w M

SP10

0%

com

plia

nce

to

plan

Not

don

eC

hang

e of

prio

ritie

s du

e to

the

split

of t

he

Dep

artm

ent

Con

duct

due

dilig

ence

ass

essm

ent

Don

eIm

plem

ent s

tabi

lisat

ion

plan

Don

e

Rev

iew,

dev

elop

and

impl

emen

t a

syst

em d

evel

opm

ent a

nd

mai

nten

ance

pla

n

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e

Rev

iew,

dev

elop

and

impl

emen

t in

frast

ruct

ure

mai

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ance

pla

nD

one

Com

plet

ed a

nd a

ppro

ved

MSP

bei

ng

impl

emen

ted

60%

Not

don

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hang

e of

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s du

e to

the

split

of t

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Dep

artm

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Impr

ove

lead

ersh

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nd

man

agem

ent

capa

bilit

ies

% o

f man

ager

s co

mpl

eted

lead

ersh

ip a

nd

man

agem

ent

cour

ses

Iden

tify

and

impl

emen

t rel

evan

t m

anag

emen

t cou

rses

70%

50%

of t

he S

MS

atte

nded

Dev

elop

par

tner

ship

with

lear

ning

in

stitu

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don

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hang

e of

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s du

e to

the

split

of t

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artm

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Esta

blis

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edba

ck m

echa

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on

impa

ct o

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inin

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ance

impr

oved

from

76.

35%

ave

rage

in fi

rst c

ycle

to

79.1

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vera

ge in

sec

ond

cycl

e; to

tal a

vera

ge p

erfo

rman

ce

was

88%

% R

etur

n on

Inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

tEs

tabl

ish

base

line

65%

Perfo

rman

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prov

ed fr

om 7

6.35

% a

vera

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firs

t cyc

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79

.10%

ave

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in s

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cle;

tota

l ave

rage

per

form

ance

w

as 8

8%D

evel

op K

PIs

in li

ne w

ith a

cqui

red

know

ledg

e


53

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-pe

rfor

man

ceD

rive

trans

form

atio

nIm

plem

enta

tion

of re

leva

nt

BBBE

E Po

licy

Rev

iew

and

alig

n D

ME

Pref

eren

tial

Proc

urem

ent P

olic

y w

ith N

atio

nal

BBBE

E po

licy

100%

Not

yet

don

eAw

aitin

g al

ignm

ent

of B

BBEE

Pol

icy

with

PP

PFA

by N

atio

nal

Trea

sury

and

DTI

% im

prov

emen

t in

Empl

oym

ent E

quity

(EE)

Inst

ill a

cultu

re o

f rec

ruiti

ng in

line

with

Dep

artm

enta

l EE

plan

Alig

ned

with

D

ME

EE P

lan

Ref

er to

Hum

an R

esou

rces

tabl

es

% p

rocu

rem

ent s

pent

on

targ

eted

gro

ups

Rev

iew

/upd

ate

supp

lier d

atab

ase

50%

45.4

% s

pent

on

BEE

targ

eted

gro

ups

Co-

ordi

nate

sup

plie

r inf

orm

atio

n se

ssio

nsD

one

Live

the

core

va

lues

% in

crea

se in

nom

inat

ions

fo

r Batho�Pele

and

Ubu

ntu

Awar

ds

Alig

n in

divi

dual

wor

k pl

an w

ith

Dire

ctor

ate

busi

ness

pla

n50

%D

one;

nin

e pe

ople

qua

lifie

d fo

r nom

inat

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% d

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ase

in

trans

gres

sion

s of

Cod

e of

C

ondu

ct

Esta

blis

h an

d si

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ff co

de o

f co

nduc

t10

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one;

SC

M C

ode

of C

ondu

ct s

igne

d by

SC

M s

taff

and

CFO

Br

anch

Ple

dge

sign

ed b

y al

l sta

ff; n

o in

cide

nts

of n

on-

com

plia

nce

Syst

em to

reco

rd a

nd m

onito

r br

each

es o

f con

duct

5%D

one;

all

brea

ches

that

attr

acte

d di

scip

linar

y pr

oced

ures

ca

ptur

ed in

HR

regi

ster

of c

ases

N

umbe

r of c

ore

valu

es

awar

enes

s se

ssio

ns

Con

vene

gen

eral

mee

tings

to

educ

ate

staf

f abo

ut v

alue

s2

Don

e; tw

o C

FOst

aff m

eetin

gs h

eld;

Dire

ctor

ate

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tings

hel

d re

gula

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nanc

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Obj

ectiv

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for u

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st

rate

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lignm

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budg

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trate

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ate

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lopm

ent o

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lans

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eved

; 96%

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t alig

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Dev

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pro

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men

t pla

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%Pr

ocur

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t pla

n fo

r CFO

’s of

fice

PROGRAMME 1

54

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at31

Mar

ch 2

010

Con

stra

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for u

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axim

ise

utilis

atio

n of

as

sets

Asse

ts d

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trate

gy

impl

emen

ted

Dev

elop

ass

et m

aint

enan

ce a

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stra

tegy

100%

co

mpl

ianc

e w

ith ti

mel

ines

Asse

ts d

ispo

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trate

gy 1

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plem

ente

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Faci

litie

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anag

emen

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an im

plem

ente

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evel

op a

ccom

mod

atio

n m

anag

emen

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an10

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com

plia

nce

with

tim

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Achi

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Dev

elop

faci

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line

w

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Don

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Man

age

cost

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fect

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educ

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in c

onfir

med

fru

itles

s, w

aste

ful a

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thor

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exp

endi

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Con

duct

wor

ksho

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anci

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proc

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20%

Don

e; S

CO

A an

d bu

dget

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cess

wor

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ps

cond

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Set t

imef

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pdat

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Impl

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cos

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5%Ac

hiev

ed; d

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unp

lann

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loca

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, unf

ores

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expe

nditu

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curre

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con

tain

men

t mea

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s su

cces

sful

ly im

plem

ente

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item

s su

ch a

s: in

tern

atio

nal t

rave

l, ca

r hire

, ven

ues

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faci

litie

s, c

ater

ing,

adv

ertis

emen

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ecru

itmen

t and

co

nsul

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fees

; tot

al a

vera

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Stra

tegi

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ng

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emen

ted

Rev

iew

and

impl

emen

t sou

rcin

g st

rate

gy

80%

Not

fina

lised

; stra

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c co

mm

oditi

es id

entif

ied

and

cont

ract

s in

pla

ce; r

egis

tratio

n pr

oces

s co

mm

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es

that

requ

ire p

re-q

ualif

icat

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iden

tifie

d an

d ta

ken

into

ac

coun

t in

new

regi

stra

tion

form

.

Res

ourc

e ch

alle

nges

Prom

ote

Cor

pora

te

Gov

erna

nce

% c

ompl

ianc

e w

ith P

FMA

Rev

iew

com

plia

nce

certi

ficat

e10

0%R

evie

w d

one

twic

e to

incl

ude

all m

onth

ly re

conc

iliatio

ns

Subm

it M

onth

ly C

ompl

ianc

e C

ertif

icat

eD

one

Cle

an A

udit

Rep

ort

mai

ntai

ned

Impl

emen

t man

agem

ent r

epre

sent

atio

n m

easu

res

for a

ll pr

oces

ses

Annu

ally

Don

e; re

com

men

datio

ns fr

om 2

008’

09 fi

nanc

ial y

ear

audi

t fin

ding

s im

plem

ente

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udit

repo

rt av

aila

ble

in J

uly

2010

Man

age

the

budg

et

effe

ctiv

ely

% b

udge

t var

ianc

eM

onito

ring

actu

al e

xpen

ditu

re a

gain

st

budg

et5%

3% (n

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udite

d) u

nder

- spe

ndin

g re

cord

ed a

t 31

Mar

ch

2010

Con

duct

qua

rterly

bud

get r

evie

w a

gain

st

Dep

artm

enta

l per

form

ance

Don

e m

onth

ly


55

SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

T PL

AN

S

BR

AN

CH

: CH

IEF

FIN

AN

CIA

L O

FFIC

E

Key

ser

vice

Serv

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bene

ficia

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urre

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tand

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(200

8’09

)D

esire

d st

anda

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Prog

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Expe

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Exte

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Qua

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Qua

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corre

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Con

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Rea

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Mem

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All p

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9

PROGRAMME 1

56

Key

ser

vice

Serv

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bene

ficia

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tand

ard

(200

8’09

)D

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Prog

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arch

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Expe

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econ

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men

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and

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Qua

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reco

ncile

dQ

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men

ts re

conc

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Inte

grat

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er fo

r Jul

y, A

ugus

t and

Se

ptem

ber w

ere

prop

erly

reco

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d an

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view

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Qua

lity

Orig

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Con

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Proa

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Tran

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ually

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Key

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tand

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60

Key

ser

vice

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bene

ficia

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tand

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(200

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Prog

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61

Key

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vice

Serv

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tand

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PROGRAMME 1

62

Key

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Serv

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tand

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(200

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63

Key

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Serv

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PROGRAMME 1

64

Key

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Serv

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bene

ficia

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nt s

tand

ard

(200

8’09

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Prog

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rmat

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cers

(DIO

s)O

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ded

to D

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les

wer

e re

turn

ed fo

r filli

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onsu

ltatio

nLi

aise

with

line

func

tions

and

th

e pu

blic

Con

sulta

tion

Liai

se w

ith li

ne fu

nctio

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nd th

e pu

blic

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oing

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trane

t and

tele

phon

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cess

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troni

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; for

ms

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net;

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rtesy

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easo

n fo

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be

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ided

co

nsis

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plic

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forw

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lega

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vice

s to

ens

ure

timeo

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spon

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n an

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nspa

rent

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thly

repo

rts p

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nspa

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thly

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nd s

tatis

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to b

e pr

ovid

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rmat

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orts

and

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tistic

sIn

form

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epor

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eR

edre

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elay

in re

spon

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the

publ

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ompt

feed

back

Ong

oing

; all

dela

yed

appl

icat

ions

fo

rwar

ded

to le

gal s

ervi

ces

to e

nsur

e tim

eous

resp

onse

Valu

e fo

r m

oney

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com

plai

nts

from

line

fu

nctio

ns a

nd th

e pu

blic

Valu

e fo

r m

oney

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imis

e co

mpl

aint

s fro

m th

e pu

blic

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; eng

agem

ent w

ith le

gal s

ervi

ces

to id

entif

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tter a

nd ti

meo

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to

fast

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k re

spon

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mes

Tim

eW

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30

days

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30

days

Don

eC

ost

Cos

t


65

Key

ser

vice

Serv

ice

bene

ficia

ryC

urre

nt s

tand

ard

(200

8’09

)D

esire

d st

anda

rd (2

009’

10)

Prog

ress

as

at 3

1 M

arch

201

0

TRA

NSP

OR

T, F

AC

ILIT

IES

AN

D R

ECO

RD

S M

AN

AG

EMEN

TPr

oces

sing

co

rresp

onde

nce

(lette

rs) f

rom

the

publ

ic

Exte

rnal

an

d in

tern

al

stak

ehol

ders

Qua

ntity

1,00

0Q

uant

ity1,

000

Qua

lity

Lette

rs d

istri

bute

d to

use

rsQ

ualit

yLe

tters

dis

tribu

ted

daily

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e; re

ceiv

ed le

tters

regi

ster

ed,

dist

ribut

ed a

nd s

igne

d da

ily b

y al

l rec

ipie

nts

Proc

essi

ng

corre

spon

denc

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tters

) fro

m th

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blic

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rnal

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tern

al

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ehol

ders

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sulta

tion

Liai

se w

ith u

sers

and

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t O

ffice

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sulta

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se w

ith u

sers

and

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one;

dai

ly c

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ctio

n/de

liver

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mai

l to/

from

Pos

t Offi

ce; u

sers

con

stan

tly in

form

ed

of d

elay

s or

inco

rrect

add

ress

esAc

cess

Tele

phon

eAc

cess

Tele

phon

e an

d em

ail

Don

e; s

ervi

ce a

cces

sibl

e te

leph

onic

ally,

by

emai

l or v

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ng o

ur o

ffice

sC

ourte

syR

easo

ns in

cons

iste

nt fo

r del

ay

in d

eliv

ery

of m

ail

Cou

rtesy

Rea

sons

for d

elay

pro

vide

d re

gula

rlyD

one;

regu

lar f

eedb

ack

to c

usto

mer

s ab

out

dela

ys, e

g co

urie

r ser

vice

del

ayO

pen

and

trans

pare

ntR

egis

ters

and

mon

thly

repo

rtsO

pen

and

trans

pare

ntR

egis

ter m

ail r

egul

arly

Don

e; re

gist

ers

for d

iffer

ent r

egis

tere

d ite

ms

upda

ted

daily

Info

rmat

ion

Reg

iste

rs a

nd r

epor

tsIn

form

atio

nPr

ovid

e st

atis

tics

acco

rdin

g to

ca

tego

ries

Don

e; d

iffer

ent r

egis

ters

for d

iffer

ent i

tem

s up

date

d to

pro

vide

sta

tistic

sR

edre

ssLo

st m

ail

Red

ress

Min

imis

e lo

st m

ail

Don

e; a

ll le

tters

regi

ster

ed

Valu

e fo

r m

oney

Com

plai

nts

from

use

rsVa

lue

for

mon

eyM

inim

ise

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plai

nts

from

use

rsD

one

Tim

eW

ithin

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ayTi

me

With

in a

day

Cos

tC

ost

PROGRAMME 1

66

PROGRAMME 2: PROMOTION OF MINE HEALTH AND SAFETY

Purpose: To execute the Department’s statutory mandate to safeguard the health and safety of the mine employees and people affected by mining activities.

Measurable objective: Reduce mining-related deaths, injuries and ill-health through the formulation of national policy and legislation, the provision of advice and application of systems that monitor, audit and enforce compliance in the mining sector.

SERVICE DELIVERY

Staffing

The establishment of the Mine Health and Safety Inspectorate (MHSI) provides for 316 posts of which 278 are currently filled and 38 are vacant.

The demographics of the Inspectorate as at 31 March 2010 consisted of:

Gender African White Asian Coloured Total

Male 113 66 1 1 181

Female 76 18 0 3 97

Human�Resource�Development

During the reporting period, the Inspectorate continued to develop the skills and knowledge base of its staff members as follows:

• 99 officials attended IRCA training• 97 officials attended WITS training, and• 26 staff members attended other administrative and technical courses.

The Inspectorate appointed 19 Engineering Learner Inspectors on 1 August 2007 on a two-year training contract which ended post-yearend on 31 July 2010. They comprise four females and 15 male learner inspectors and were placed for mine experiential training at Goldfields Business and Leadership Academy (GFBLA). Seven Learner inspectors were placed in the electrical engineering discipline and 12 Learner Inspectors in Mechanical Engineering.

All 19 Engineering Learner Inspectors completed their respective mine experiential training post-yearend and are now placed for Inspector training within the regional offices of the Inspectorate. They were offered a four-year conditional contract and are required to acquire the Government Certificate of Competency (GCC) within the contract period. Upon successful completion and internal management assessment of candidates, they will be offered permanent employment.

The Inspectorate offered 18 bursaries to students during the reporting period. The group consists of seven female and 11 male students of which one student completed his studies and the remaining 17 are at various stages towards completing their respective qualifications. The students are pursuing the following mining-related qualifications:

• Electrical Engineering (Heavy Current)• Electrical Engineering• Mine Engineering.


67

Disaster-type�accidents

Fall of ground accidents still remain the largest accident category and the predominant cause of fatalities, followed by the transportation and machinery categories. During the reporting period, a massive fall of ground accident at a platinum mine in North West claimed the lives of nine mine employees. In the Gauteng Region, four seismic events resulted in the death of eight mine workers, two workers in each individual event.

Small-scale�mining

Since the promulgation of the Minerals and Petroleum Resources Development Act, 28 of 2004, the issuing of mining permits to SMMEs increased dramatically and has stretched the regulatory capacity of the Inspectorate.

As a result, the MHSI conducted more inspections at these types of operations and continued to offer training and assistance to small-scale miners. Most of these operations are concentrated in the diamond sector, and therefore located in the Northern Cape and North West Regions.

HIV/Aids�and�Occupational�Health

The partnership between the Department of Minerals and Energy, Labour and Employers is committed to combating the HIV and AIDS epidemic in the mining industry.

A substantial number of employees opted for voluntary HIV testing during the year under review and the ARV programmes for affected employees are gaining momentum.

TB, the effects of HIV and AIDS and noise induced hearing loss (NIHL) are the main occupational health challenges faced by the mining industry. The large mines have mainly been implementing awareness and wellness programmes to improve the current status. Most of the mines are administering ARV medication to boost the health status of infected workers. The efforts by these mines and levels of success are commendable and all mines are encouraged to develop and implement similar programmes.

Although many challenges to achieve the mine health milestones remain, various initiatives and strategies have been successfully implemented in a number of mines in most of the regions. The initiatives are aimed at ensuring compliance with limits of both noise and silica hazards encountered at mines.

Regional working groups have been formed and maintained by the Inspectorate to support and monitor progress made by the mines to achieve their health milestones.

Service�delivery�achievements

The MHSI strategic plan and achievements during the reporting period are outlined in the Table below. This is an account of progress achieved by the end of the reporting period against the annual targets set for achieving the DME’s strategic objectives.

PROGRAMME 2

68

Stak

ehol

der/C

usto

mer

Mea

sure

s

Obj

ectiv

eM

easu

res

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ativ

esTa

rget

09’1

0Pr

ogre

ss a

sat

31

Mar

ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-per

form

ance

Prom

ote

and

regu

late

m

iner

als

and

ener

gy

sect

ors

% in

crea

se in

leve

l of c

ompl

ianc

e to

hea

lth a

nd s

afet

y re

gula

tions

Annu

al a

naly

sis

and

revi

ew o

f O

ccup

atio

n, H

ealth

and

Saf

ety

(OH

S) a

udits

10%

Not

ach

ieve

dSy

stem

stil

l in

deve

lopm

ent

Impr

ove

turn

arou

nd

times

Res

pons

e da

ysIm

plem

ent d

ocum

ent m

anag

emen

t sy

stem

Five

w

orki

ng

days

Rep

orte

d m

onth

ly

% a

dher

ence

to to

pre

scrib

ed

timef

ram

esSk

illing

of e

mpl

oyee

s an

d pr

ovid

ing

adeq

uate

sys

tem

s10

0%C

ontin

uous

pro

cess

Prov

ide

trans

pare

nt

and

cons

iste

nt

enfo

rcem

ent

Num

ber o

f app

eals

com

plet

edD

evel

op a

nd im

plem

ent p

olic

ies

and

proc

edur

es80

%80

%

% c

ompl

etio

n of

nat

iona

l Min

ing

Hea

lth a

nd S

afet

y (M

HS)

sys

tem

Reg

ular

revi

ew o

f OH

S sy

stem

im

plem

enta

tion

plan

30%

Alig

ned

with

im

plem

enta

tion

plan

Com

mun

icat

e va

lid

and

relia

ble

min

e he

alth

and

saf

ety

info

rmat

ion

% ta

rget

aud

ienc

e re

ache

dIn

con

junc

tion

with

com

mun

icat

ion

stra

tegy

60%

67%

% d

ata

verif

ied

Verif

icat

ion

of re

cord

s su

bmitt

ed b

y m

ines

100%

Don

e m

onth

ly o

n SA

MR

ASS

Num

ber o

f MH

S re

ports

Publ

icat

ion

of M

HS

Annu

al R

epor

t1

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itted

to

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iste

rIm

prov

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r en

gage

men

tsN

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bour

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ons

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one

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thly

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f mee

tings

with

em

ploy

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Mee

tings

with

em

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er

form

atio

ns??

4D

one

mon

thly

Num

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tings

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go

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t dep

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ents

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with

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, DoL

, DPP

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one

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OH

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100%

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acity

cha

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es m

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ted

with

recr

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69

Obj

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ch 2

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stra

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for u

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form

ance

% in

spec

tions

con

duct

edC

ondu

ct re

gula

r ins

pect

ions

100%

91%

Cap

acity

cha

lleng

es m

itiga

ted

with

recr

uitm

ent a

nd

initi

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es in

clud

ing

burs

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s, le

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and

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proc

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impl

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and

exe

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s%

inve

stig

atio

ns c

ompl

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Con

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regu

lar i

nves

tigat

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80%

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Achi

eved

% o

f inq

uirie

s co

mpl

eted

Con

duct

regu

lar i

nqui

ries

80%

105%

Achi

eved

and

com

plet

ed fr

om p

revi

ous

year

% in

crea

se in

the

com

plia

nce

leve

lsAn

nual

ana

lysi

s an

d re

view

of O

HS

audi

ts10

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line

with

act

ion

plan

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w-u

p au

dits

bei

ng p

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l Aud

it fin

ding

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tern

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Obj

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easu

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dev

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plem

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afet

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70%

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Impl

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slat

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in n

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fram

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non

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plia

nce

issu

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pra

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with

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sta

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iew

and

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proc

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polic

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and

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lignm

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f res

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trate

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acc

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abilit

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impl

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tatio

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mpl

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BSC

prin

cipl

es

impl

emen

ted

Man

age

serv

ice

leve

l ag

reem

ents

(SLA

s) w

ith

prof

essi

onal

bod

ies

% S

LAs

sign

ed w

ith a

gree

d tim

efra

mes

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elop

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nves

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arch

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r the

per

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% a

dher

ence

to S

LAs

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iew

of i

mpl

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ted

SLAs

100%

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eved

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blis

h co

mpl

ianc

e st

anda

rds

% s

tand

ards

est

ablis

hed

Inco

rpor

ate

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arch

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com

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to O

HS

regu

latio

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erst

and

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umbe

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take

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cond

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ct re

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r sur

veys

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ot y

et p

lann

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PROGRAMME 2

70

Obj

ectiv

eM

easu

res

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ativ

esTa

rget

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0Pr

ogre

ss a

sat

31

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ch 2

010

Con

stra

ints

/Rea

son

for u

nder

-pe

rfor

man

ce

Stak

ehol

der a

nd c

usto

mer

rela

tions

hip

man

agem

ent

Educ

ate

and

empo

wer

our

st

akeh

olde

rsN

umbe

r of w

orks

hops

/ inf

orm

atio

n se

ssio

ns h

eld

as id

entif

ied

Con

duct

regu

lar w

orks

hops

42

Reg

ular

con

sulta

tion

and

feed

back

on

OH

SFe

edba

ck/c

onsu

ltatio

n se

ssio

ns h

eld

as

iden

tifie

dAt

tend

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rd m

eetin

gs8

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eved

Driv

e H

&S in

nova

tions

% in

nova

tion

proj

ects

impl

emen

ted

to

impr

ove

busi

ness

pra

ctic

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old

regu

lar m

eetin

gs50

%D

one

as re

sear

ch re

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ob

tain

edId

entif

y im

plem

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chal

leng

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and

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wth

Attra

ct, d

evel

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redu

ctio

n in

sta

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erIm

plem

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rate

d H

uman

Res

ourc

es p

lan

70%

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itore

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onth

ly%

redu

ctio

n in

vac

anci

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plem

ent I

nteg

rate

d H

R P

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% im

plem

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of P

DPs

alig

ned

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Im

plem

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thly

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ewed

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PROGRAMME 2

72

TABLE 1 Actual fatalities and rates (per million hours worked) per region

2008 2009* Rates

Fatalities Fatality rates Fatalities Fatality rates % change

All mines 171 0.15 167 0.16 6.67

Western Cape 2 0.12 3 0.19 58.33

Northern Cape 6 0.09 4 0.07 -22.22

Free State 18 0.18 21 0.23 27.78

Eastern Cape 0 0 0 0 0.00

KwaZulu Natal 2 0.08 9 0.36 350.00

Mpumalanga 27 0.16 25 0.16 0.00

Limpopo 8 0.09 5 0.05 -44.44

Gauteng 58 0.25 44 0.2 -20.00

North West 50 0.12 56 0.14 16.67

•� Provisional�figures�(*)�because�statistics�may�change�due�to�the�late�reporting�of�accidents�and�subsequent�deaths.•� A�negative�(-)�figure�denotes�a�decrease�in�frequency�rate.

TABLE 2 Actual reportable injuries and rates (per million hours worked) per region

2008 2009* Rates

Injuries Injury rates Injuries Injury rates % change

All mines 3,750 3.34 3672 3.45 3.29

Western Cape 22 1.34 15 0.93 -30.60

Northern Cape 56 0.85 56 0.94 10.59

Free State 472 4.80 400 4.44 -7.50

Eastern Cape 12 2.65 8 2.01 -24.15

Kwazulu Natal 31 1.30 54 2.18 67.69

Mpumalanga 472 2.76 419 2.66 -3.62

Limpopo 188 2.20 202 1.98 -10.00

Gauteng 862 3.78 761 3.52 -6.88

North West 1,635 3.78 1,757 4.47 18.25



73

TABLE 3 Actual fatalities and rates (per million hours worked) per commodity

2008 2009* Rates

Fatalities Fatality rate Fatalities Fatality rate % change 2008’09

All mines 171 0.15 167 0.16 6.67

Gold 85 0.25 80 0.24 -4.00

Platinum 36 0.09 41 0.11 22.22

Coal 20 0.15 18 0.12 -20.00

Diamonds 6 0.15 3 0.11 -26.67

Copper 1 0.12 1 0.14 16.67

Chrome 4 0.15 3 0.13 -13.33

Iron ore 2 0.07 3 0.10 42.86

Manganese 0 0.00 1 0.94 94.00

Other 17 0.14 17 0.15 7.14

• Provisional�figures�(*)�because�statistics�may�change�due�to�the�late�reporting�of�accidents�and�subsequent�deaths.• A�negative�(-)�figure�denotes�a�decrease�in�frequency�rate

TABLE 4 Actual reportable injuries and rates (per million hours worked) per commodity

2008 2009* Rates

Injuries Injury rates Injuries Injury rates % change

All mines 3750 3.34 3672 3.45 3.29

Gold 1938 5.65 1756 5.36 5.13

Platinum 1221 2.95 1320 3.55 20.34

Coal 332 2.42 295 1.97 -18.60

Diamonds 35 0.84 46 1.66 97.62

Copper 22 2.51 19 2.59 3.19

Chrome 58 2.12 61 2.58 21.70

Iron ore 12 0.44 15 0.49 11.36

Manganese 16 1.91 11 1.03 -46.07

Other 116 1.23 149 1.30 5.69

• Provisional�figures�(*)�because�statistics�may�change�due�to�the�late�reporting�of�accidents�and�subsequent�deaths.• A�negative�(-)�figure�denotes�a�decrease�in�frequency�rate

PROGRAMME 2

74

TABLE 5 Fatality and injury rates per casualty classification (rates per million hours worked)

Classification 2008 2009 2008 rates 2009 rates % change

1 Fatalities All mines 171 167 0.15 0.16 6.67

Fall of ground 56 64 0.05 0.06 20.00

Machinery 4 8 0.00 0.01 100.00

Transportation and mining 41 47 0.04 0.04 0.00

General 45 32 0.04 0.03 -25.00

Conveyance accidents 13 2 0.01 0.00 100.00

Electricity 5 5 0.00 0.00 0.00

Fires 2 0 0.00 0.00 0.00

Explosives 2 4 0.00 0.00 0.00

Subsidence/caving 0 0 0.00 0.00 0.00

Heat sickness 1 4 0.00 0.00 0.00

Diving sickness 0 0 0.00 0.00 0.00

Miscellaneous 2 1 0.00 0.00 0.00

2 Injuries All mines 3,750 3,672 3.34 3.45 3.29

Fall of ground 779 833 0.69 0.78 13.04

Machinery 192 301 0.17 0.28 64.71

Transportation and mining 729 694 0.65 0.65 0.00

General 1,868 1,617 1.66 1.52 -8.43

Conveyance accidents 24 19 0.02 0.02 0.00

Electricity 31 20 0.03 0.02 -33.33

Fires 3 5 0.00 0.00 0.00

Explosives 39 37 0.03 0.03 0.00

Subsidence/caving 2 0 0.00 0.00 0.00

Occupational diseases 1 1 0.00 0.00 0.00

Heat sickness 27 74 0.02 0.07 250.00

Diving sickness 0 1 0.00 0.00 0.00

Miscellaneous 55 70 0.05 0.07 40.00



75

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PROGRAMME 2

76

PROGRAMME 3: MINERAL REGULATION

Purpose: To regulate the minerals and mining sectors to achieve transformation and sustainable development.

Programme objective: To transform the minerals and mining sectors into one that competitively contributes to the sustainable development in the country.

SERVICE DELIVERY OVERVIEW

The Mineral Regulation Branch completed its fourth year since inception during the 2009’10 financial year. Its main function is the processing, finalisation of applications, monitoring and evaluation of rights under the Mineral and Petroleum Resources Development Act, 28 of 2002 (MPRDA). As at 31 March 2010, the Department received 20,163 applications of which 16,190 were accepted, 3,653 rejected and 5,805 issued.

The Department, through the Mineral Regulation Branch, initiated the revision of internal processes for applications in terms of the MPRDA to shorten turnaround times and enhance service delivery.

During the 2009’10 financial year the objective of the Branch was to grant mineral rights 27 to historically disadvantaged South Africans (HDSAs) against an achievement of 465. In the case of women-led entities, 73 rights were granted compared with the target of 18. Eighteen workshops were held for HDSAs and women-led entities, against a planned 10, to engage and promote interaction with these stakeholders which assisted in promoting the objectives of the MPRDA.

The Branch achieved 317 Mining Charter compliance inspections against a target of 140, due to a strategic shift in focus on monitoring and compliance by holders of rights. In the area of environmental management, the Branch conducted 3,449 inspections against a target of 1,380. The Branch will also assist the Rehabilitation Oversight Committee (ROC), established in December 2009, with joint inspections and the identification of derelict and ownerless mines. We embarked on intensive compliance inspections mainly about the environment, such as water management, acid mine drainage and insufficient rehabilitation, BEE partnerships or participation, SLP and work programmes to determine the magnitude of compliance in view of the “use it or lose it “principle.

Challenges were experienced during the past financial year to effectively implement SLPs by holders of mining rights. This was established through increase of complaints received from various communities and through compliance inspections. The deadline for the conversion of old order mining rights into new mining rights, expired on 30 April 2009 and those who did not meet the said deadline have forfeited their rights and any continuation of their mining activities is illegal.

During the year the Branch identified the need to revise its organisational structure to improve service delivery as well as delivering on its mandate. The revised organisational structure was approved in principle pending funding of certain newly created posts. The implementation of the new structure started post-yearend and is currently in progress.

National�Mining�Promotion�System�(NMPS)

The Branch also identified that the National Mining Promotion System (NMPS) requires further development from its current purely application database capability, into an integrated management system that can facilitate more efficient processing, monitoring and resource management.


77

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y im

plem

ent

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vant

legi

slat

ion

Num

ber o

f ass

essm

ent w

orks

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with

th

e ap

plic

ants

hol

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f rig

hts

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duct

indu

stry

eng

agem

ent w

orks

hops

27

4

7

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dard

ised

pro

cedu

res

and

proc

esse

s N

umbe

r of s

tand

ardi

sed

proc

edur

es

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esse

s R

evie

w e

xist

ing

proc

edur

es a

nd p

roce

sses

1

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ine

econ

omic

s gu

idel

ines

stil

l to

be a

ligne

d w

ith th

e re

quire

men

t of

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Num

ber o

f pro

cedu

res

and

proc

esse

s al

igne

d w

ith p

olic

ies

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nmen

t of p

roce

sses

and

pro

cedu

res

1

1

Effe

ctiv

e se

rvic

e de

liver

yAl

loca

tion

of a

ppro

pria

te

reso

urce

s%

alig

nmen

t of f

inan

cial

reso

urce

s w

ith

oper

atio

nal n

eeds

Hol

d bu

dget

wor

ksho

p;co

stin

g al

l act

iviti

es;

anal

yse

budg

et; s

ubm

it bu

dget

pro

posa

l

100%

80%

Lim

ited

fund

s

% im

plem

enta

tion

of th

e BS

CIm

plem

ent B

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r eac

h co

rpor

ate

serv

ices

pla

n10

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isal

ignm

ent o

f per

form

ance

ag

reem

ents

with

BSC


79

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r un

der-

perf

orm

ance

Rev

iew

and

impr

ove

serv

ice

stan

dard

s%

ser

vice

sta

ndar

ds re

view

ed a

nd

impr

oved

Dev

elop

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revi

ew s

ervi

ce s

tand

ards

in li

ne

with

Batho�Pele;�p

ublic

ser

vice

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ndar

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0%75

%Bu

sine

ss p

roce

sses

and

in

form

atio

n de

sk

Stak

ehol

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nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

tEd

ucat

e an

d em

pow

er

stak

ehol

ders

Num

ber o

f inf

orm

atio

n w

orks

hops

with

co

mm

uniti

esC

ondu

ct w

orks

hops

1622

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ove

cons

ulta

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and

feed

back

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uenc

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con

sulta

tion

and

feed

back

ses

sion

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ondu

ct in

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ry w

orks

hops

10 in

dust

ry

wor

ksho

ps (1

pe

r reg

ion)

52

Driv

e in

nova

tion

% in

nova

tion

proj

ects

impl

emen

ted

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tify,

pla

n, im

plem

ent a

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onito

r pro

ject

s20

%20

%C

ontri

bute

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usta

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le

deve

lopm

ent

Num

ber o

f ide

ntifi

ed, d

erel

ict a

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owne

rless

reha

bilit

atio

n pr

ojec

tsO

vers

ee im

plem

enta

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of c

ontra

ct w

ith s

ervi

ce

prov

ider

130

Lack

of r

ehab

ilitat

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stra

tegy

and

R

OC

inte

rven

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entif

ied

and

prio

ritis

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n-re

habi

litat

ed a

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nsaf

e m

ines

Secu

re fu

ndin

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oncl

ude

cont

ract

with

iden

tifie

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rvic

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ovid

er1

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ck o

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abilit

atio

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rate

gy a

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C in

terv

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ning

and

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wth

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evel

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tain

ap

prop

riate

sta

ff%

redu

ctio

n in

sta

ff tu

rnov

er ra

te

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emen

t HR

pla

n2%

100%

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duct

ion

in v

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cies

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plem

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R p

lan

5%95

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aff t

urno

ver

% im

plem

enta

tion

of P

DPs

alig

ned

with

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tmen

tal n

eeds

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emen

t HR

D p

lan

50%

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elop

kno

wle

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man

agem

ent s

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ms

% c

ompl

etio

n of

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wle

dge

Man

agem

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sk te

am h

eade

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mun

icat

ion

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e10

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lise

fram

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k an

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p IT

pla

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now

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e M

anag

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pdat

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agem

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agem

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umbe

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anag

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plet

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ersh

ip a

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anag

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t cou

rses

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nsio

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ogra

mm

e10

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ew

man

ager

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ncia

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stra

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% R

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prov

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quity

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pla

nPe

r DM

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pl

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RD

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rem

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pent

on

targ

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gr

oups

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per

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pora

te S

ervi

ces

plan

s50

%

PROGRAMME 3

80

Obj

ectiv

esM

easu

res

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ativ

esTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r un

der-

perf

orm

ance

Live

the

core

val

ues

% in

crea

se in

nom

inat

ions

for B

atho�

Pele

and

Ubu

ntu

Awar

ds

As p

er C

orpo

rate

Ser

vice

s pl

ans

50%

% d

ecre

ase

in tr

ansg

ress

ions

of C

ode

of C

ondu

ctAs

per

Cor

pora

te S

ervi

ces

plan

s5%

0

Num

ber o

f cor

e va

lues

aw

aren

ess

prog

ram

mes

Con

duct

inte

rnal

wor

ksho

ps10

HR

bud

get c

onst

rain

ts

Fina

nce

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n bu

dget

to s

trate

gy%

of b

udge

t alig

ned

to s

trate

gic

prio

ritie

sD

evel

op s

pend

ing

plan

s in

con

junc

tion

with

fin

ance

100%

100%

Effe

ctiv

ely

man

age

budg

et%

bud

get v

aria

nce

(Bra

nch)

Mon

itor a

ctua

l exp

endi

ture

aga

inst

bud

get

(spe

ndin

g pl

ans)

5%10

0%

Max

imis

e ut

ilisat

ion

of

asse

tsR

educ

e re

dund

ant a

sset

s (p

hysi

cal)

impl

emen

t ass

et m

aint

enan

ce a

nd d

ispo

sal

stra

tegy

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tify

redu

ndan

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sets

and

re

duce

by

30%

Effe

ctiv

ely

man

age

expe

nditu

re a

nd re

venu

e co

llect

ion

Red

uctio

n in

con

firm

ed fr

uitle

ss,

was

tefu

l and

una

utho

rised

exp

endi

ture

(B

ranc

h)

Atte

nd w

orks

hops

arr

ange

d an

d co

nduc

ted

by

CFO

’s of

fice

100%

100%

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pond

to id

entif

ied

inci

dent

s w

ithin

tim

efra

mes

de

term

ined

by

CFO

’s of

fice

% d

ebts

col

lect

edM

onito

r deb

tors

on

a m

onth

ly b

asis

and

con

duct

au

dits

of m

ine

inco

me

100%

80%

Roy

altie

s fo

r exa

mpl

e, o

nly

beca

me

paya

ble

with

effe

ct 0

1 M

arch

201

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omot

e C

orpo

rate

G

over

nanc

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com

plia

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with

PFM

A Im

plem

ent c

ompl

ianc

e fra

mew

ork

100%

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81

MIN

ERA

L R

EGU

LATI

ON

SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

T PL

AN

S

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

9)D

esire

d St

anda

rd (2

009’

10)

Prog

ress

as

at 3

1 M

arch

201

0In

crea

sed

num

ber

of H

DSA

’s an

d w

omen

pa

rtici

patio

n in

the

min

ing

indu

stry

HD

SA’s

(bla

cks,

co

lour

eds

and

Indi

ans)

Qua

ntity

45 ri

ghts

gra

nted

to H

DSA

Qua

ntity

63 ri

ghts

gra

nted

to H

DSA

’s

81

Qua

lity

Audi

ted

Qua

lity

Audi

tC

onsu

ltatio

nM

eetin

gs a

nd w

orks

hops

with

co

mm

uniti

es a

nd m

inin

g in

dust

ryC

onsu

ltatio

nM

eetin

gs a

nd w

orks

hops

with

co

mm

uniti

es a

nd m

inin

g in

dust

ry

6

Acce

ssC

omm

unic

atio

n th

roug

h D

ME

web

site

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leph

onic

and

writ

ten

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unic

atio

n th

roug

h D

ME

web

site

, tel

epho

nic

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writ

ten

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%C

ourte

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ses

Ope

n an

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rent

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arly

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ed

busi

ness

pro

cess

es, b

ette

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ess

to D

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web

site

Batho�Pe

le p

rinci

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ered

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; ge

nera

l % o

f adh

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31

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ch 2

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estim

ated

at 8

0%In

form

atio

nG

uide

lines

, Inf

orm

atio

n w

orks

hops

, ap

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atio

n pr

oced

ures

in th

e D

ME

web

site

Info

rmat

ion

Gui

delin

es, i

nfor

mat

ion

wor

ksho

ps,

appl

icat

ion

proc

edur

es o

n D

ME

web

site

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le p

rinci

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are

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ered

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nera

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ch 2

010

estim

ated

at 8

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edre

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edba

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eetin

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e ac

tions

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ress

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back

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, cor

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ered

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nera

l % o

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ce a

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Mar

ch 2

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ated

at 8

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lue

for

mon

eyAc

quis

ition

of s

hare

s an

d ow

ners

hip

in

the

min

ing

indu

stry

Va

lue

for

mon

ey R

epre

sent

ativ

e an

d tra

nsfo

rmed

in

dust

ryAw

aitin

g C

harte

r Rev

iew

pro

cess

fo

r sta

tistic

sTi

me

Six

mon

ths

for p

rosp

ectin

g rig

hts

and

min

ing

perm

its, t

wel

ve m

onth

s fo

r m

inin

g rig

hts

Tim

eSi

x m

onth

s fo

r pro

spec

ting

right

s an

d m

inin

g pe

rmits

, tw

elve

mon

ths

for m

inin

g rig

hts

80%

Cos

tPr

ospe

ctin

g fe

es a

nd fi

nanc

ial

prov

isio

n fo

r reh

abilit

atio

nC

ost

Pros

pect

ing

fees

and

R

ehab

ilitat

ion

fees

/fina

ncia

l pr

ovis

ion

Addr

essi

ng 8

0% o

f iss

ues

iden

tifie

d in

aud

it re

port

Con

sist

ent

turn

arou

nd ti

mes

in

pro

cess

ing

pros

pect

ing

and

min

ing

right

s

appl

icat

ions

Min

ing

indu

stry

, pl

ayer

s in

the

indu

stry

Qua

ntity

All s

ubm

itted

app

licat

ions

Qua

ntity

All s

ubm

itted

app

licat

ions

80%

Qua

lity

Audi

ted

and

final

ised

app

licat

ions

Qua

lity

Audi

ted

and

final

ised

app

licat

ions

80%

PROGRAMME 3

82

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008’

9)D

esire

d St

anda

rd (2

009’

10)

Prog

ress

as

at 3

1 M

arch

201

0C

onsu

ltatio

nD

WAF

, DE

AT, D

LA, c

omm

uniti

es, l

ocal

au

thor

ities

, Nat

iona

l Par

ks B

oard

sC

onsu

ltatio

nD

WAF

, DE

AT, D

LA, c

omm

uniti

es,

loca

l aut

horit

ies,

Nat

iona

l Par

ks

Boar

ds

90%

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ssC

omm

unic

atio

n vi

a em

ail,

tele

phon

ic

and

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ssC

omm

unic

atio

n th

roug

h D

ME

web

site

, via

em

ail,

tele

phon

ic a

nd

writ

ten

Batho�Pe

le p

rinci

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are

adh

ered

to

; ge

nera

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eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%C

ourte

syH

elp

desk

, ind

ustry

ass

essm

ent

wor

ksho

psC

ourte

syH

elp

desk

, iIn

dust

ry a

sses

smen

t w

orks

hops

, acc

ess

to N

MPS

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%O

pen

and

trans

pare

ntC

lear

ly d

efin

ed a

nd d

ispl

ayed

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sine

ss p

roce

sses

Ope

n an

d tra

nspa

rent

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arly

def

ined

and

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play

ed

busi

ness

pro

cess

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ette

r acc

ess

to th

e D

ME

web

site

/NM

PS

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%In

form

atio

nIn

dust

ry w

orks

hops

on

busi

ness

pr

oces

ses,

app

licat

ion

proc

edur

es o

n D

ME

web

site

, gui

delin

es

Info

rmat

ion

Indu

stry

wor

ksho

ps o

n bu

sine

ss

proc

esse

s, a

pplic

atio

n pr

oced

ures

in

the

DM

E w

ebsi

te, G

uide

lines

/N

MPS

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%

Red

ress

Feed

back

mee

tings

, cor

rect

ive

actio

nsR

edre

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edba

ck m

eetin

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orre

ctiv

e ac

tions

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%Va

lue

for

mon

eyAc

hiev

emen

t of o

bjec

tives

of t

he

MPR

DA

Valu

e fo

r m

oney

Tran

sfor

med

indu

stry

Batho�Pe

le p

rinci

ples

are

adh

ered

to

; ge

nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%Ti

me

Six

mon

ths

for p

rosp

ectin

g rig

hts

and

min

ing

perm

its, t

wel

ve m

onth

s fo

r m

inin

g rig

hts

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eSi

x m

onth

s fo

r pro

spec

ting

right

s an

d m

inin

g pe

rmits

, tw

elve

mon

ths

for m

inin

g rig

hts

Batho�Pe

le p

rinci

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ered

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nera

l % o

f adh

eren

ce a

s at

31

Mar

ch 2

010

estim

ated

at 8

0%C

ost

Pros

pect

ing

and

reha

bilit

atio

n fe

es/

finan

cial

pro

visi

onC

ost

Pros

pect

ing

and

reha

bilit

atio

n fe

es/fi

nanc

ial p

rovi

sion


83

PROGRAMME 4: THE MINERAL POLICY AND PROMOTION BRANCH

Purpose: To formulate mineral-related policies and promote the mining and minerals industry of South Africa, making it attractive to investors.

Measurable objective: Through research, provide relevant information to enhance global competitiveness, review policies and formulate legislation to achieve transformation and attract new investment into South Africa’s minerals industry.

The 2009’10 financial year saw the full wrath of the global economic crisis to which the South African mining industry was not immune. The Branch continued to lead a counter-cyclical intervention, the Mining Industry Growth Development and Employment Task Team (MIGDETT), which sought to mitigate job losses and position the mining industry along a growth path with concurrent transformation. This intervention saved in excess of 60 000 jobs, representing more than half of the original projected losses. In line with its visionary second mandate, MIGDETT also developed a draft strategy on sustainable growth and meaningful transformation in South Africa’s mining industry with an emphasis on growth and transformation. The strategy culminated in the Mining Summit for all stakeholders on 31 March 2010. The Summit welcomed the MIGDETT strategy, agreed to the bulk of the recommendations and resolved that work should continue to finalise the outstanding issues during the 2010’11 financial year.

The Branch undertook a reconnaissance exercise to evaluate the extent to which the South African government is exposed to the mining industry. Consequent to the findings of this exercise, Cabinet imposed a moratorium on the disposal of any state mining assets subject to a more detailed audit being completed by the Department. Cabinet further directed the Department to propose a way of maximising government’s participation in the mining industry in line with its developmental objectives. The completed report on the creation of the state mining company will be tabled for consideration by Cabinet during the 2010’11 financial year.

The beneficiation strategy saw another round of consultations after the fourth consecutive election in May 2009 ushered in a new administration. The strategy is now ready for tabling before Cabinet formal adoption as a policy of South Africa.

The South African mining industry’s environmental legacy of more than a century requires a dedicated approach to mitigate further environmental degradation and pollution and the potentially negative impact on communities. Consequently, the Branch developed a rehabilitation strategy for derelict and ownerless mines, which was approved by the Minister in December 2009. An interim rehabilitation oversight committee was also established to develop an implementation plan for the rehabilitation strategy until the Branch is adequately capacitated to take over this responsibility.

South Africa’s sustainable development (SD) framework, incorporating all three SD spheres, namely economic, environmental and social, was finalised and the SD thematic report submitted to the United Nations Commission on Sustainable Development (UNCSD) in preparation for the 18th session of the Commission. This report outlines the mining industry’s progress against the developmental targets agreed at the 2002 Johannesburg UNCSD Summit.

PROGRAMME 4

84 PROGRAMME PERFORMANCE - SECTION 2

MEA

SUR

AB

LE O

BJE

CTI

VES,

KEY

AC

TIVI

TIES

AN

D M

EDIU

M-T

ERM

OU

TPU

T TA

RG

ETS

Stak

hold

er P

ersp

ectiv

e

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Dra

ft an

d de

velo

p po

licie

s an

d le

gisl

atio

n / p

rom

ote

the

min

ing

and

min

eral

s in

dust

ry

Con

tribu

tion

to s

ecto

r G

DP

grow

thPu

blis

h an

d di

ssem

inat

e in

dust

ry

prom

otio

nal m

ater

ial a

t loc

al a

nd

inte

rnat

iona

l inv

estm

ent e

vent

s (in

cl

conf

eren

ces,

wor

ksho

ps, e

xhib

ition

)

Parti

cipa

tion

in re

gion

al a

nd

inte

rnat

iona

l coo

pera

tion

to

stre

ngth

en tr

ade

rela

tions

(inc

l AM

P, K

PCS,

bi-

and

mul

tilat

eral

ag

reem

ents

)

[GD

P +

1%]

Perc

enta

ge c

hang

e in

min

ing

cont

ribut

ion

to G

DP

Q1-

Q4

2009

(lat

est f

igur

es a

vaila

ble,

R

eser

ve B

ank

QB

Mar

ch 2

010)

=

min

us 7

.2%

; tar

get w

as p

lus

1%, t

hus

diffe

renc

e be

twee

n ta

rget

and

act

ual i

s -8

.2%

-8.2

%

Mai

n co

nstra

int i

s pr

omot

ion

of in

vest

men

t co

inci

ding

with

nat

iona

l eco

nom

ic

cont

ract

ion

and

budg

etar

y co

nstra

ints

w

ithin

the

Bran

ch. T

he d

eclin

ing

quar

ter-

on-q

uarte

r inv

estm

ent i

n m

inin

g is

a

func

tion

of th

e gl

obal

fina

ncia

l and

ec

onom

ic c

risis

, whi

ch s

ever

ely

impa

cted

in

vest

men

t in

the

min

ing

sect

or.

Dra

ft an

d de

velo

p po

licie

s an

d le

gisl

atio

n / p

rom

ote

the

min

ing

and

min

eral

s in

dust

ry

Dev

elop

men

t and

im

plem

enta

tion

of

bene

ficia

tion

stra

tegy

Wor

ksho

p to

obt

ain

cons

ensu

s on

im

plem

enta

tion

plan

for b

enef

icia

tion

stra

tegy

Stra

tegy

ad

opte

dN

ot a

chie

ved

Stra

tegy

doc

umen

t dev

elop

ed fo

r tab

ling

to

Cab

inet

sub

ject

to a

dditi

onal

con

sulta

tion

with

var

ious

sta

keho

lder

s w

hich

is ta

king

lo

nger

than

pla

nned

Dra

ft an

d de

velo

p po

licie

s an

d le

gisl

atio

n / p

rom

ote

the

min

ing

and

min

eral

s in

dust

ry

Con

tribu

tion

to

empl

oym

ent c

reat

ion

Qua

ntify

num

ber o

f job

s cr

eate

d in

the

indu

stry

(abs

olut

e te

rms)

5%Jo

b lo

sses

con

tain

ed to

less

th

an 1

0% o

f tot

al m

inin

g em

ploy

men

t as

the

econ

omy

cont

ract

s; r

eces

sion

ary

econ

omy

thre

aten

ed to

she

d m

ore

than

20%

of m

inin

g em

ploy

men

tPr

ovid

e cl

ear M

inin

gan

d M

iner

als

Reg

ulat

ory

and

Polic

y Fr

amew

ork

% re

duct

ion

in

iden

tifie

d po

licy

and

regu

lato

ry g

aps

Rev

iew

Min

ing

Cha

rter

80%

95%

Con

stan

t rev

iew

of p

olic

ies

and

regu

latio

ns a

nd in

tern

atio

nal

benc

hmar

ks

Cab

inet

app

rove

d G

eosc

ienc

es

Bill

for t

ablin

g in

Par

liam

ent

Parli

amen

t sch

edul

ed a

Feb

ruar

y da

te fo

r M

inis

ter t

o ta

ble

the

Bill,

whi

ch c

oinc

ided

w

ith S

tate

vis

it; n

ew d

ate

secu

red

for l

ater

ta

blin

g of

the

Bill

85

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Prov

ide

clea

r Min

ing

And

Min

eral

s R

egul

ator

y An

d Po

licy

Fram

ewor

k

% re

duct

ion

in

iden

tifie

d po

licy

and

regu

lato

ry g

aps

Con

stan

t rev

iew

of p

olic

ies

and

regu

latio

ns a

nd in

tern

atio

nal

benc

hmar

ks

80%

MPR

DA

regu

latio

ns d

raft

docu

men

t dev

elop

edSt

akeh

olde

r con

sulta

tion

on d

raft

regu

latio

ns p

ut o

n ho

ld s

ubje

ct to

out

com

e of

Min

ing

Cha

rter r

evie

wD

evel

op n

ew p

olic

ies

whe

re n

eces

sary

Com

plet

ed d

raft

Sugi

lte P

olic

y do

cum

ent;

polic

y pu

t on

hold

for d

evel

opm

ent o

f co

mm

on p

olic

y fo

r all

by-p

rodu

cts

Impr

ove

turn

arou

nd ti

mes

Ackn

owle

dgem

ent o

f qu

erie

s Bu

ild a

que

ry d

atab

ase

With

in th

ree

days

Achi

eved

ave

rage

of f

ive

days

fo

r unc

ompl

icat

ed q

uerie

sTh

e qu

ery

track

ing

mec

hani

sm b

eing

de

velo

ped

but p

rogr

ess

depe

ndan

t on

SDM

su

ppor

t for

und

erly

ing

data

base

sys

tem

s.R

espo

nse

time

to

quer

ies

Dev

elop

a q

uery

man

agem

ent s

yste

mW

ithin

10

days

Achi

eved

less

than

10

days

re

spon

se

See

abov

e

Prov

ide

clea

r Min

ing

And

Min

eral

s R

egul

ator

y An

d Po

licy

Fram

ewor

k

% re

duct

ion

in

iden

tifie

d po

licy

and

regu

lato

ry g

aps

Con

stan

t rev

iew

of p

olic

ies

and

regu

latio

ns a

nd in

tern

atio

nal

benc

hmar

ks

80%

MPR

DA

regu

latio

ns d

raft

docu

men

t dev

elop

edSt

akeh

olde

r con

sulta

tion

on d

raft

regu

latio

ns p

ut o

n ho

ld s

ubje

ct to

out

com

e of

Min

ing

Cha

rter r

evie

wD

evel

op n

ew p

olic

ies

whe

re n

eces

sary

Com

plet

ed d

raft

Sugi

lte P

olic

y do

cum

ent;

polic

y pu

t on

hold

for d

evel

opm

ent o

f co

mm

on p

olic

y fo

r all

by-p

rodu

cts

Impr

ove

turn

arou

nd ti

mes

Ackn

owle

dgem

ent o

f qu

erie

s Bu

ild a

que

ry d

atab

ase

With

in th

ree

days

Achi

eved

ave

rage

of f

ive

days

fo

r unc

ompl

icat

ed q

uerie

sTh

e qu

ery

track

ing

mec

hani

sm b

eing

de

velo

ped

but p

rogr

ess

depe

ndan

t on

SDM

su

ppor

t for

und

erly

ing

data

base

sys

tem

s.R

espo

nse

time

to

quer

ies

Dev

elop

a q

uery

man

agem

ent s

yste

mW

ithin

10

days

Achi

eved

less

than

10

days

re

spon

se

See

abov

e

Impr

ove

turn

arou

nd ti

mes

% a

dher

ence

to

pres

crib

ed ti

me

fram

es

Com

plia

nce

with

pre

scrib

ed ti

mef

ram

es

in le

gisl

atio

n, re

gula

tions

and

SLA

s10

0%80

%Is

sues

are

bey

ond

cont

rol o

f Bra

nch

as

mos

t are

dep

ende

nt o

n C

orpo

rate

Ser

vice

s an

d Fi

nanc

ial S

ervi

ces,

eg

IT e

quip

men

t w

orki

ng 1

00%

of t

he ti

me

Build

stra

tegi

c pa

rtner

ship

sN

umbe

r of s

trate

gic

partn

ersh

ips

esta

blis

hed

(eg

with

Bur

eau

of

Econ

omic

Res

earc

h,

Uni

vers

ities

)

Esta

blis

h pa

rtner

ship

s w

ith s

cien

tific

bo

dies

and

oth

er re

leva

nt b

odie

s to

en

hanc

e da

ta q

ualit

y

25

PROGRAMME 4


Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Impl

emen

tatio

n of

bila

tera

l and

m

ultil

ater

al

agre

emen

ts

Iden

tify

impl

emen

ting

agen

ts a

nd

conc

lude

impl

emen

tatio

n pl

ans

22

Prov

ide

cred

ible

, acc

essi

ble

info

rmat

ion

Mon

thly

pro

visi

on o

f m

inin

g da

taPr

oduc

e st

atis

tical

bul

letin

s12

12

Num

ber o

f min

eral

s an

d m

inin

g pu

blic

atio

ns a

nd

dire

ctor

ies

Num

ber o

f min

eral

s an

d m

inin

g pu

blic

atio

ns a

nd d

irect

orie

s (m

aint

ain

curre

ncy

in d

ata

man

agem

ent s

yste

ms

(SAM

IND

EX,

SIA

T, E

DSS

)

3336

Hig

h tu

rn-o

ver r

ate

of p

rofe

ssio

nals

(M

iner

al E

cono

mis

ts) a

nd tr

aini

ng o

f new

st

aff r

esul

ted

in th

e ta

rget

not

bei

ng m

et

Prov

ide

cred

ible

, acc

essi

ble

info

rmat

ion

Exhi

bitio

ns/

conf

eren

ces

and

wor

ksho

ps

Parti

cipa

tion

in lo

cal a

nd in

tern

atio

nal

prom

otio

nal e

vent

s (in

cl in

vest

men

t an

d te

chni

cal c

onfe

renc

es, w

orks

hops

, ex

hibi

tions

)

2430

Less

er fo

cus

on in

tern

atio

nal e

ngag

emen

t du

e to

bud

get c

onta

inm

ent m

easu

res,

mor

e em

phas

is o

n lo

cal p

rom

otio

nal a

ctiv

ities

INTE

RN

AL

BU

SIN

ESS

PRO

CES

SES

PER

SPEC

TIVE

Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Effic

ient

bus

ines

s pr

oces

ses

Enha

nce

prod

uctiv

ityPr

ogre

ss a

gain

st b

usin

ess

plan

com

mitm

ents

Reg

ular

mon

itorin

g an

d ev

alua

tion

of p

rogr

ess

90%

90%

Con

tribu

tion

to U

NC

SSD

re

porti

ngPr

ovid

e in

put t

o N

atio

nal S

trate

gy

for S

usta

inab

le D

evel

opm

ent

Esta

blis

h re

porti

ng

stan

dard

s

Don

e

Dev

elop

men

t of s

usta

inab

le

deve

lopm

ent s

trate

gies

(m

ine

clos

ure

Der

elic

t and

O

wne

rless

Min

es S

trate

gy)

Cat

alys

e th

e im

plem

enta

tion

of th

e R

egio

nal M

ine

Clo

sure

St

rate

gies

(Witw

ater

sran

d an

d KO

SH)

Stra

tegi

es

com

plet

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raft

stra

tegy

dev

elop

ed (n

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dopt

ed)

Del

ayed

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t rec

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m s

take

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subs

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ntly

inco

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ated

in d

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es d

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for

Wes

tern

Bas

in, F

ar W

este

rn B

asin

, Eas

tern

Ba

sin,

Cen

tral B

asin

and

KO

SHM

aint

enan

ce a

nd u

pdat

e of

th

e da

taba

se o

f der

elic

t and

ow

nerle

ss m

ines

Stra

tegy

Stra

tegy

ado

pted

87

Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Driv

e tra

nsfo

rmat

ion

Dev

elop

and

revi

ew m

inin

g po

licie

s an

d le

gisl

atio

n R

evie

w M

inin

g C

harte

r2

Con

stan

t rev

iew

of p

olic

ies

and

regu

latio

ns a

nd in

tern

atio

nal

benc

hmar

ks

Cab

inet

app

rove

d G

eosc

ienc

es

Bill

for t

ablin

g in

Par

liam

ent

MPR

DA

regu

latio

ns d

raft

docu

men

t dev

elop

ed

Parli

amen

t sch

edul

ed a

Feb

ruar

y da

te fo

r M

inis

ter t

o ta

ble

the

Bill,

whi

ch c

oinc

ided

w

ith S

tate

vis

it; n

ew s

ecur

ed fo

r lat

er

tabl

ing

of th

e Bi

ll

Stak

ehol

der c

onsu

ltatio

n on

dra

ft re

gula

tions

put

on

hold

sub

ject

to o

utco

me

of M

inin

g C

harte

r rev

iew

Dev

elop

new

pol

icie

s w

here

ne

cess

ary

Com

plet

ed d

raft

sugi

lte p

olic

y do

cum

ent;

polic

y pu

t on

hold

de

velo

p co

mm

on p

olic

y fo

r all

by-p

rodu

cts

Dev

elop

and

fina

lise

min

ing

stra

tegy

for S

MM

E de

velo

pmen

t St

rate

gy a

dopt

edD

raft

SSM

stra

tegy

doc

umen

t de

velo

ped,

not

yet

app

rove

dD

ocum

enta

tion,

st

anda

rdis

atio

n an

d re

view

of i

nter

nal

proc

edur

es

Num

ber o

f int

erna

l pr

oced

ures

doc

umen

ted

and

stan

dard

ised

Con

stan

tly d

evel

op a

nd re

view

gu

idel

ines

Doc

umen

tatio

n fin

alis

edAl

l uni

ts in

Bra

nch

deve

lope

d in

tern

al p

roce

dure

s do

cum

enta

tion

Dev

elop

con

sist

ent

mon

itorin

g an

d en

forc

emen

t gu

idel

ines

Red

uctio

n in

com

plai

nts

rela

ting

to p

roce

dura

l in

cons

iste

ncy

Doc

umen

t com

plai

nts

90%

70%

Mor

e th

an a

ntic

ipat

ed c

ompl

aint

s re

ceiv

ed

abou

t SSM

and

ben

efic

iatio

n pr

ojec

t su

ppor

t due

to c

hang

es in

ass

ista

nce

mod

el; m

ore

emph

asis

pla

ced

on fi

nalis

ing

and

impl

emen

ting

new

mod

el;

few

er

com

plai

nts

in th

ird q

uarte

r; bi

gges

t ch

alle

nge

is S

SMB

over

- com

mitm

ent a

nd

inad

equa

te fu

nds

to a

ssis

t all

proj

ects

ap

prov

ed fo

r fin

anci

al a

ssis

tanc

eN

umbe

r of g

uide

lines

de

velo

ped

in li

ne w

ith

legi

slat

ion

Dev

elop

gui

delin

es fo

r min

ing

polic

ies

and

legi

slat

ion

10

The

imm

inen

t Cha

rter r

evie

w th

e fo

cus

area

; no

guid

elin

es d

evel

oped

PROGRAMME 4


Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Effe

ctiv

e se

rvic

e de

liver

yAl

loca

tion

of

appr

opria

te re

sour

ces

% a

lignm

ent o

f res

ourc

es to

op

erat

iona

l nee

dsEv

alua

te jo

b pr

ofile

s to

ens

ure

rele

vanc

e to

job

requ

irem

ents

(q

ualif

icat

ions

and

mat

eria

l re

sour

ces)

and

upd

ate

cont

inuo

usly

60%

50%

Job

eval

uatio

n fo

r the

Chi

ef D

irect

orat

e:

Econ

omic

Adv

isor

y U

nit c

oncl

uded

Alig

nmen

t of r

esou

rces

to

cust

omer

nee

ds/ e

xpec

tatio

nsH

uman

cap

acity

stil

l lim

ited

to a

vaila

ble

reso

urce

sBu

ild a

ccou

ntab

ility

% im

plem

enta

tion

of B

SCEn

sure

that

all

offic

ials

ado

pt

BSC

app

roac

h in

per

form

ance

ag

reem

ents

100%

60%

Tran

slat

ion

of B

SC to

wor

kpla

n co

mpl

ex;

wor

k in

pro

gres

s

Perfo

rman

ce a

gree

men

ts

and

appr

aisa

ls fi

nalis

ed

with

in ta

rget

Com

plet

e an

d m

onito

r pe

rform

ance

agr

eem

ents

100%

10

0%

Build

and

man

age

Serv

ices

Lev

el

Agre

emen

ts

Esta

blis

h se

rvic

e st

anda

rds

(inte

rnal

ly a

nd e

xter

nally

)En

sure

com

plia

nce

with

exi

stin

g ag

reem

ents

and

dev

elop

new

on

es w

here

nec

essa

ry

100%

90%

W

ork

plan

s w

ith o

ffici

als

in th

e Br

anch

co

mpl

eted

; agr

eem

ents

ent

ered

into

with

M

inte

k fo

r reh

abilit

atio

n of

der

elic

t and

ow

nerle

ss m

ines

; CG

S to

win

d-up

SSM

pr

ojec

ts a

nd ID

C to

fina

nce

SSM

pro

ject

s%

adh

eren

ce to

Ser

vice

Le

vel A

gree

men

tsEn

sure

com

plia

nce

with

exi

stin

g ag

reem

ents

and

dev

elop

new

on

es w

here

nec

essa

ry

100%

95 %

Agre

emen

ts w

ith C

GS

to fi

nalis

e pr

ojec

ts

for w

hich

it w

as a

ppoi

nted

to m

anag

e an

d ID

C is

95%

com

plie

d w

ith.

Esta

blis

h se

rvic

e st

anda

rds

% s

tand

ards

Est

ablis

hed

Com

plet

e &

mon

itor S

ervi

ce

Del

iver

y Im

prov

emen

t Pla

n10

0%90

%Ad

min

iste

red

by S

uppl

y C

hain

Man

agem

ent

Und

erst

and

cust

omer

/ st

akeh

olde

rs n

eeds

Cus

tom

er n

eeds

sur

vey

cond

ucte

dD

evel

op s

trate

gy to

und

erst

and

cust

omer

s (e

g de

velo

p su

rvey

qu

estio

nnai

re a

nd s

ugge

stio

n bo

x)

1Su

rvey

not

yet

don

efro

m

Cus

tom

er s

atis

fact

ion

surv

ey

cond

ucte

dD

evel

op s

trate

gy to

und

erst

and

cust

omer

s (e

g de

velo

p su

rvey

qu

estio

nnai

re a

nd s

ugge

stio

n bo

x)

1Su

rvey

not

yet

don

eAw

aitin

g di

rect

ive

of th

e D

epar

tmen

t’s

supp

ort s

ervi

ce

89

Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Driv

e in

nova

tion

Num

ber o

f inn

ovat

ion

proj

ects

impl

emen

ted

Impr

ove

serv

ice

thro

ugh

inno

vativ

e so

lutio

ns (c

reat

e en

ablin

g en

viro

nmen

t to

embr

ace

inno

vativ

e cu

lture

)

21

Cul

ture

of i

nnov

atio

n in

trodu

ced

durin

g re

porti

ng y

ear;

bein

g nu

rture

d fo

r mor

e in

nova

tive

prop

ositi

ons

in y

ears

ahe

ad

Stak

ehol

der a

nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

t Ed

ucat

e an

d em

pow

er

stak

ehol

ders

Num

ber o

f min

ing/

min

eral

w

orks

hops

and

info

rmat

ion

sess

ions

Parti

cipa

tion

in lo

cal a

nd

inte

rnat

iona

l pro

mot

ion

even

ts (e

g M

inin

g Ta

sk T

eam

, con

fere

nces

, w

orks

hops

, exh

ibiti

ons)

2430

Less

er fo

cus

on in

tern

atio

nal e

ngag

emen

t du

e to

bud

get c

onta

inm

ent m

easu

res;

mor

e em

phas

is o

n lo

cal p

rom

otio

nal a

ctiv

ities

Reg

ular

con

sulta

tion

and

feed

back

Freq

uenc

y of

con

sulta

tion

and

feed

back

ses

sion

sC

onsu

ltatio

n an

d fe

edba

ck

sess

ions

in re

spec

t of p

olic

y de

velo

pmen

t/rev

iew,

stra

tegi

es

deve

lope

d (e

g be

nefic

iatio

n)

513

Build

stra

tegi

c al

lianc

es a

nd

partn

ersh

ips

Parti

cipa

tion

in b

ilate

ral a

nd

mul

tilat

eral

agr

eem

ents

and

im

plem

enta

tion

of re

leva

nt

agre

emen

ts

Prof

ile c

ount

ries

of s

trate

gic

sign

ifica

nce

514

cou

ntrie

s pr

ofile

dSl

ow p

rogr

ess

due

to in

crea

se in

num

ber o

f pr

iorit

ised

cou

ntrie

s

Rev

iew

all

min

eral

s an

d m

inin

g ag

reem

ents

and

impl

emen

tAl

l ava

ilabl

e ag

reem

ents

so

urce

d an

d re

view

ed;

cons

titut

e ba

sis

of p

rofil

ing

coun

tries

of s

trate

gic

sign

ifica

nce

Man

age

cust

omer

/ st

akeh

olde

r ex

pect

atio

ns

% ra

ting

in c

lient

sat

isfa

ctio

n su

rvey

Con

duct

sur

vey

on

stak

ehol

der

expe

ctat

ions

70%

0%C

usto

mer

sat

isfa

ctio

n su

rvey

not

yet

de

velo

ped;

aw

aitin

g gu

idan

ce fr

om

Cor

pora

te S

ervi

ces

colle

ague

s

Lear

ning

and

Gro

wth

Attra

ct, d

evel

op a

nd

reta

in s

kills

% re

duct

ion

in s

taff

turn

over

ra

te

Impl

emen

tatio

n of

HR

Pla

n2%

1%

% re

duct

ion

in v

acan

cies

Im

plem

enta

tion

of H

R P

lan

5%10

.5%

Two

resi

gnat

ions

of c

ritic

al s

kills

and

long

-st

andi

ng v

acan

cies

% im

plem

enta

tion

of P

DPs

al

igne

d w

ith D

epar

tmen

tal

need

s

Impl

emen

tatio

n of

HR

D P

lan

50%

35%

PROGRAMME 4


Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Dev

elop

Kno

wle

dge

Man

agem

ent S

yste

mIn

vest

men

t in

info

rmat

ion

capi

tal (

SIAT

and

bus

ines

s pl

an e

valu

atio

n to

ols)

Inve

st 1

0% o

f Bra

nch

reso

urce

s10

% o

f res

ourc

esLe

ss th

an 5

% re

sour

ces

allo

cate

dSD

M h

as s

igne

d-of

f on

SIAT

and

ED

SS

syst

ems

deve

lopm

ent;

coul

d no

t be

impl

emen

ted

due

to p

oor I

T in

frast

ruct

ure

Con

tribu

tion

to D

ME

know

ledg

e m

anag

emen

t (K

M) s

yste

ms

plan

Doc

umen

t int

erna

l pro

cess

es

and

upda

te th

em to

ens

ure

pres

erva

tion

of in

stitu

tiona

l m

emor

y

Bran

ch K

M

requ

irem

ents

fin

alis

ed

No

prog

ress

Awai

ting

Dep

artm

enta

l KM

cha

mpi

on fo

r gu

idel

ines

Impr

ove

lead

ersh

ip

and

man

agem

ent

capa

bilit

ies

% m

anag

ers

com

plet

ed

lead

ersh

ip a

nd m

anag

emen

t co

urse

s

Exte

nsio

n of

WIT

S pr

ogra

mm

e70

0% (H

RD

)Aw

aitin

g H

RD

for g

uida

nce

Awai

ting

depa

rtmen

tal H

R g

uida

nce

on

3600 re

view

mec

hani

sms

% R

etur

n on

Inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

t36

0˚ s

urve

y to

ol65

%0%

Driv

e tra

nsfo

rmat

ion

% Im

prov

emen

t in

Empl

oym

ent E

quity

Im

plem

ent D

ME

EE P

lan

Per D

ME

EE P

lan

90%

ach

ieve

dIn

dian

, col

oure

d, w

omen

repr

esen

tatio

n at

sm

s-le

vel a

nd p

eopl

e w

ith d

isab

ility

rem

ain

unde

r-rep

rese

nted

% p

rocu

rem

ent s

pent

on

targ

eted

gro

ups

Info

rm re

quis

ite s

uppl

iers

to

regi

ster

on

data

base

50%

SCM

Dat

a Ba

se

Live

the

core

val

ues

Num

ber o

f cor

e va

lues

aw

aren

ess

sess

ions

As

per

Cor

pora

te S

ervi

ces

plan

sFo

ur s

essi

ons

per

year

2

% in

crea

se in

nom

inat

ions

for

the Ba

tho�Pe

le a

nd U

bunt

u Aw

ards

As p

er C

orpo

rate

Ser

vice

s pl

ans

50%

Achi

eved

% d

ecre

ase

in tr

ansg

ress

ions

of

Cod

e of

Con

duct

As p

er C

orpo

rate

Ser

vice

s pl

ans

5%1%

Alig

nmen

t of b

udge

t w

ith s

trate

gy%

bud

get a

ligne

d w

ith

stra

tegi

c pr

iorit

ies

Dev

elop

spe

ndin

g pl

ans

in

conj

unct

ion

with

fina

nce

90%

92%

Bran

ch m

anag

emen

t con

stitu

ted

by n

ew

man

ager

s; s

pend

ing

plan

s be

ing

final

ised

Ef

fect

ivel

y m

anag

e bu

dget

Util

isat

ion

of h

uman

cap

ital

Alig

nmen

t of h

uman

reso

urce

s w

ith b

udge

t70

%60

%

% b

udge

t var

ianc

eEn

sure

that

exp

endi

ture

m

anag

emen

t is

a pe

rman

ent i

tem

of

mon

thly

man

agem

ent m

eetin

gs

Mon

thly

Achi

eved

Mon

itor a

ctua

l exp

endi

ture

ag

ains

t bud

get (

spen

ding

pla

ns)

91

Obj

ectiv

esM

easu

res

Initi

ativ

eTa

rget

s20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch

2010

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Effe

ctiv

ely

man

age

cost

s%

con

firm

ed fr

uitle

ss,

was

tefu

l and

una

utho

rised

ex

pend

iture

Atte

nd w

orks

hops

arr

ange

d an

d co

nduc

ted

by C

FO’s

offic

e0%

0%Br

anch

not

ser

ved

with

any

con

cern

of

fruitl

ess

and

was

tefu

l exp

endi

ture

Res

pond

to id

entif

ied

inci

dent

s w

ithin

tim

efra

mes

det

erm

ined

by

CFO

’s of

fice

Bran

ch n

ot s

erve

d w

ith a

ny c

once

rn o

f fru

itles

s an

d w

aste

ful e

xpen

ditu

re

Prom

ote

gove

rnan

ce%

com

plia

nce

with

PFM

AIm

plem

ent c

ompl

ianc

e fra

mew

ork

100%

100%

No

conc

ern

of d

evia

tion

rais

ed

MIN

ERA

L PO

LIC

Y A

ND

PR

OM

OTI

ON

BR

AN

CH

SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

T PL

AN

S

Key

Ser

vice

Serv

ice

bene

ficia

ries

Cur

rent

sta

ndar

d (2

008’

9)D

esire

d st

anda

rd (2

009’

10)

Prog

ress

as

at 3

1 M

arch

201

0

Prom

ote

min

ing

and

min

eral

in

dust

ry o

f Sou

th

Afric

a

The

publ

ic,

gove

rnm

ent

depa

rtmen

ts, D

ME,

D

ME-

asso

ciat

ed

inst

itutio

ns,

min

ing

indu

stry

, pr

ospe

ctiv

e in

vest

ors

Qua

ntity

28 P

ublic

atio

ns20

Pro

mot

iona

l eve

nts;

est

ablis

h an

d su

ppor

t 33

sust

aina

ble

SMM

Es;

deve

lop/

revi

ew p

olic

y an

d le

gisl

atio

n

Qua

ntity

33 P

ublic

atio

ns

24 P

rom

otio

nal e

vent

s49

new

and

exi

stin

g SM

MEs

su

ppor

ted

Dev

elop

ed/re

view

ed tw

o po

licie

s/le

gisl

atio

n

26 P

ublic

atio

ns49

new

and

exi

stin

g SM

ME

supp

orte

d30

pro

mot

iona

l eve

nts

held

Qua

lity

Rel

evan

t con

tent

in p

ublic

atio

nsQ

ualit

yPr

ovid

e cr

edib

le, a

cces

sibl

e in

form

atio

n th

roug

h pu

blic

atio

ns

and

cons

ulta

tions

/pro

mot

iona

l ev

ents

Build

ing

stra

tegi

c re

latio

ns a

ssis

ted

in e

nhan

cing

dat

a bu

t cur

rent

ce

ntra

lisat

ion

of s

ubsc

riptio

n is

M

AJO

R p

robl

em fo

r Dire

ctor

ate

Con

sulta

tion

Mee

tings

/wor

ksho

ps, r

oad

show

s,

med

ia in

terv

iew

sC

onsu

ltatio

nM

eetin

gs/w

orks

hops

, roa

d sh

ows,

med

ia in

terv

iew

sTr

avel

repo

rts to

sub

stan

tiate

Acce

ssW

ritte

n, te

leph

onic

, vis

its, w

ebsi

te,

e-co

mm

unic

atio

nAc

cess

Writ

ten,

tele

phon

ic, v

isits

, w

ebsi

te, e

-com

mun

icat

ion

Elec

troni

c co

pies

to s

ubst

antia

te

Cou

rtesy

Batho�Pe

le p

rinci

ples

Cou

rtesy

Batho�Pe

le p

rinci

ples

Satis

fact

ory

com

men

ts fr

om c

lient

s pr

ovid

e fe

edba

ck b

asis

Ope

n an

d tra

nspa

rent

Annu

al R

epor

tO

pen

and

trans

pare

ntAn

nual

Rep

ort

Annu

al re

port

is a

pub

lic d

ocum

ent

Info

rmat

ion

DM

E W

ebsi

te, p

ublic

atio

ns a

nd

prom

otio

nal e

vent

sIn

form

atio

nD

ME

Web

site

, pub

licat

ions

and

fo

cus

on lo

cal e

vent

sR

egul

ar u

pdat

e of

info

on

web

site

PROGRAMME 4


Key

Ser

vice

Serv

ice

bene

ficia

ries

Cur

rent

sta

ndar

d (2

008’

9)D

esire

d st

anda

rd (2

009’

10)

Prog

ress

as

at 3

1 M

arch

201

0

Red

ress

Polic

ies

on tr

ansf

orm

ing

indu

stry

; is

sues

as

rais

edR

edre

ssPo

licie

s on

tran

sfor

min

g in

dust

ry; d

ocum

ent a

ll co

mpl

aint

s an

d fe

edba

ck

prov

ided

Valu

e fo

r mon

eyW

ithin

bud

get

Valu

e fo

r m

oney

Effe

ctiv

e se

rvic

e de

liver

y (h

ighe

r im

pact

) with

redu

ced

budg

etO

pera

ting

with

in b

udge

t.

Tim

eAn

nual

lyTi

me

Annu

ally

Annu

ally

Cos

tC

ost

With

in b

udge

t

93

PROGRAMME 5: HYDROCARBONS, ENERGY PLANNING AND CLEAN ENERGY

Purpose: To undertake integrated energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that promote the efficient use of petroleum products, coal, gas and renewable energy sources.

Measurable objectives:

• Ensure sustainable supply and demand of energy, while taking into account macroeconomic factors, environmental considerations and energy infrastructural development, by developing an integrated energy plan by March 2011.

• Improve the security of energy supply by fostering investments in storage for liquid fuels through the development of a strategic stocks policy by March 2009.

• Promote gas as an alternative source of energy in South Africa by developing a pricing policy and licensing regulations for the supply and distribution of liquid petroleum gas by October 2009, which will enable fuel switching as a demand management mechanism for electricity.

• Encourage research and development for energy-related technologies with a key focus on energy efficiency and mitigation of greenhouse gases by establishing the South African National Energy Development Institute by September 2009.

• Ensure access to affordable energy sources and services by increasing the number of operational integrated energy centres from six to nine before March 2010.

• Strengthen the regulatory framework in the petroleum products industry by ring-fencing regulated products and implementing the regulatory accounting system before March 2010.

• Create an enabling environment for the diversification of fuel sources by developing and implementing a predictable and stable regulatory regime by introducing maximum pricing for petrol, diesel, paraffin, liquid petroleum gas and biofuels in revised magisterial district zones by December 2009.

• Improve the security of energy supply through integrated planning by developing and implementing a national integrated energy modelling system by March 2011.

SERVICE DELIVERY

Service�delivery�objectives�and�indicators�

The approached undertaken by the Department for the implementation of the 2007 energy security master plan for liquid fuels had to be reviewed in response to the Competitions Act, 89 of 1998. Certain elements of the ESMP are currently being implemented, including the construction of the New Multi-Product Pipeline (NMPP). Aligned with the National Energy Act, 34 of 2008, the Department started focusing on implementing elements of the legislation, including drafting the business case for the establishment of the South African National Energy Development Institute (SANEDI). The process of drafting regulations for the mandatory submission of energy data is also underway. Over the medium- term, the Department will develop a number of enabling policies including a security of supply strategy and regulatory accounting framework for the industry. An effective petroleum licensing system is a prerequisite for the Department to effectively regulate prices along with health, safety and environmental compliance within the petroleum sector.

The implementation of the Petroleum Products Amendment Act (PPAA), 58 of 2003, provides for the licensing of manufacturers (refiners), wholesalers and retailers of petroleum products. It also promotes the transformation of the South African petroleum and liquid fuels industry, giving effect to the Liquid Fuels Charter. As at 31 March 2010, approximately 15,198 licences had been received since the implementation of the Act, with a total of 12,453 licences (all types) processed and approximately 2,745 waiting to be processed.

Service�delivery�achievements�

Petroleum licensing and compliance

The office of the Petroleum Controller is mandated to conduct a PPAA awareness campaign to create awareness about the rules and regulations of licensing petroleum operations and products, compliance monitoring and enforcement. The envisaged road shows, press releases and

PROGRAMME 5

94

quarterly regional workshops to assist in this regard could not be conducted due budgetary constraints. Regional retailer dealer workshops are, however, currently being conducted by Regional Directors of Energy to spread awareness.

The office of the Controller developed an action plan to address the conversion licence backlog of outstanding accepted applications which was approved by senior management. As a result of this action plan the conversion backlog was completely eradicated by September 2009 with a focus now on new applications. As regards capacity building, our office continued with the small business development course for analysts, which has had a positive impact on the standard of analysis.

In February each year, as required by PPAA regulations, the office of the Petroleum Controller receives annual information submissions from all licensed activities. This information is used to monitor the impact of the PPAA in the liquid fuels sector.

National�Integrated�Energy�Modelling�System�(NIEMS)

User requirement specifications for the development of NIEMS were finalised. Due to funding constraints alternative approaches to developing a South African energy modelling system were evaluated and certain recommendations made.

Integrated�Energy�Planning�Strategy�(IEPS)

A Terms of Reference for the Integrated Energy Planning (IEP) Strategy was developed, which outlines the purpose of the strategy, expected outcomes and benefits of a structured approach in developing an IEP. The draft is currently in progress.

Data

DoE hosted a Joint Oil Data Initiative (JODI) and African Petroleum Producers Association (APPA) training workshop in December 2009 to train local oil companies and DoE officials on the JODI questionnaire and APPA databank. Noticeable improvements have been made to the SA JODI data provision to the United Nations Statistical Division (UNSD) and International Energy Forum (IEF).

The Digest of South African Energy Statistics was finalised in 2009 and published in 2010. It provides a summary of the SA Energy Balance for 2006, with an overview of the energy demand by sectors and energy supply by energy carrier. It is useful for forecasting future energy demand and showing dominant energy carriers and their use.

The Energy Price Report was compiled and summarises monthly and annual historical prices of common energy carriers in South Africa. It is useful for forecasting future energy prices and for energy planning purposes.

The Energy Balance for 2006 was finalised and published on the Department’s website. This is a useful way to present an overview of the energy flows for a specific period in time.

These efforts indicate the DoE’s intention to reduce the lag in publishing the energy balances annually and the 2007, 2008 and 2009 Energy Balances will be released in the 2010’11 financial year.

The DoE has signed a Memorandum of Understanding on partnerships in the National Statistics System (NSS) in September 2009. The MOU is aimed at formalising collaboration between DoE and Stats SA or other relevant NSS partners on issues of data quality for the production of reliable energy statistics designated as official energy statistics. The DoE and Stats SA have held meetings with the aim of implementing the MoU and establishing a Joint Working Party to manage the implementation.

The draft Regulations on the Provision of Energy Data, to support the data collection process, were developed and approved for release for public comment by the Minister of Energy. The objectives of these regulations are to:


95

• enable the Department to effectively collect, collate and publish quality energy data and information • provide for the type, manner and form of energy data and information that must be provided by any person; and• provide for the form and manner of the link between the energy database and information system to any other system within the public

administration.

The final Regulations will be gazetted in the 2010’11 financial year.

The SANEDI business plan was approved by the Minister of Energy in 2009 and submitted to the Minister of Finance and the Minister of Public Service and Administration for further consideration and approval.

FIFA�World�Cup�2010�Task�Team

A task team was set up by the DoE to ensure adequate supply of fuel during WC2010. The task team comprised officials from other government departments, state-owned entities and oil companies. The team’s responsibilities included the development of a consolidated supply plan for jet fuel and other petroleum products, identifying and addressing operational constraints across the supply chain and developing consolidated operational plans in conjunction with the oil industry and Transnet.

Illuminating�Paraffin�Project

Safe Illuminating Paraffin (IP) Appliances Pilot Programme

The programme seeks to test the efficacy and promote the use of safer IP appliances while addressing problems associated with harmful incidents caused by the use of IP in low income households in the country. To this end, one thousand (1,000) safe IP stoves were distributed by the Department to a thousand (1,000) households in four identified areas with a history of IP fire accidents. These areas are: Alexandra in Gauteng (350 beneficiaries), Emizamoyethu in the Western Cape (350 beneficiaries), Ezinqoleni Municipality in KwaZulu Natal (150 beneficiaries) and Mbizana in the Eastern Cape (150 beneficiaries). The programme was officially launched by the Minister at Ezinqoleni Municipality (KZN South Coast) in October 2009. Youths in the identified areas were temporarily employed to assist with the programme and build capacity for future initiatives. The programme roll-out in all the four areas was completed and its assessment, based on surveys conducted using questionnaires, will be done by the end of 2010’11 financial year. The programme included the supply of free ten (10) litres IP per month to the beneficiaries.

Strategic stocks

The Department developed a Draft Strategic Stocks Policy document for petroleum products to ensure that the economy does not suffer from shortages during severe liquid fuel supply disruptions/ catastrophes. The drafting of the concomitant regulations for the management of strategic stocks has commenced for finalisation during the 2010’11 financial year.

The Draft Strategic Stocks Policy document was approved for consultation with other economic sector departments. It is expected to be tabled to Cabinet during the forthcoming financial year.

LPG

In response to the public outcry about exorbitant LPG prices, the Department undertook to regulate the retail price of LPG supplied to residential customers. In line with Government’s efforts to expand the energy mix and promote LPG as an efficient energy carrier for household cooking and other thermal purposes, the Department developed Draft Regulations regarding the maximum retail price of LPG supplied to household customers. The Draft Regulations and the associated Draft Working Rules were published in the Government Gazette for public comment in November 2009. A stakeholder workshop on comments received was held in February 2010. Comments were considered and the draft documents revised and sent to the State Law Adviser (SLA) for legal advice. The SLA’s advice was incorporated and the regulation of the retail price of LPG supplied to residential customers is expected to come into effect within the first quarter of 2010’11 financial year.

PROGRAMME 5

96

Regulatory accounts

The goal is to have a uniform and transparent set of regulatory accounts where costs are allocated according to predetermined methods to provide certainty to investors with regards to the returns on assets throughout the petroleum industry value chain. This would be achieved by ring-fencing regulated from unregulated activities to eliminate actual and potential cross-subsidies.

The benchmark service station (BSS) model was completed and discussed with relevant stakeholders. The models for the other three segments, namely coastal storage, secondary storage and distribution, as well as wholesale and head office, will be finalised in October 2010.

New multi-product pipeline

In recognition of the fact that more than 60% of our liquid fuels demand lies within the Durban-to-Johannesburg corridor and the fact the Durban-to-Johannesburg Pipeline (DJP) had become inadequate to transport the required volumes of petroleum products from the coast to the inland regions, the Department in its Energy Security Master Plan (ESMP) included the construction of a bigger new multi-product pipeline (NMPP) by Transnet.

As part of the implementation of the ESMP, the Department, in conjunction with the Department of Public Enterprises and National Treasury, worked on the funding mechanism for the NMPP. This culminated in the Minister of Finance raising a security of supply levy of 7.5 cents per litre to enable motorists to contribute funds towards the construction of the NMPP during his Budget Speech on 13 February 2010.

Project Mthombo

The Energy Security Master Plan for Liquid Fuels (ESMP) advocated for the development of a crude oil refinery in Coega by South Africa’s National Oil Company, PetroSA to mitigate the country’s growing reliance on imported finished product as a result of inadequate local refining capacity. Pursuant to this, PetroSA commenced with the development of a project for a 400,000 barrels per day crude oil refinery in the port of Nqhura under the leadership of the Department.

Besides addressing South Africa’s liquid fuels challenges, this project is crucial in repositioning the National Oil Company to compete with the best and the most efficient oil companies and to facilitate the introduction of more stringent clean fuels specifications and standards in the South African market. The feasibility study was completed and a request to proceed with Front-end Engineering and Design (FEED) activities lodged with the Department.

Cleaner fuels

Clean fuels, because of lower toxic emissions, are essential for people’s health and improved engine performance and longevity in motor vehicles.

The first regulation of fuel specifications and standards by Government occurred in 2006 when the Department promulgated Regulations regarding Petroleum Products Specifications and Standards.

An Inter-Departmental Task Team, comprising the Departments of Energy, Environmental Affairs, Trade and Industry, Transport, National Treasury and the South African Bureau of Standards, was established to develop a Government position and roadmap on the second phase of future fuel specifications and standards.

A draft Position Paper and Roadmap have been finalised, having engaged the two key stakeholders, namely the South African Petroleum Industry Association (SAPIA) and National Association of Automobile Manufacturers (NAAMSA). Intense consultations with all stakeholders will commence after the 2010 FIFA World Cup Soccer Tournament.


97

Integrated Energy Centres (IeCs)

Integrated Energy Centres are one of many interventions led by the Department as part of Government’s comprehensive response to the challenges of addressing energy poverty and underdevelopment, particularly in outlying and rural areas. IeCs are “one-stop” shops in identified poverty nodal areas to contribute towards access to information on various energy sources/services and access to energy services (mainly petrol and diesel and, in some cases, illuminating paraffin and LPG), as well as facilitating integrated development and job creation in poverty stricken areas. IeCs are run by community cooperatives with the assistance of the Department.

To date there are five (5) operational IeCs with an average of eight (8) employees and forty (40) permanent jobs created. The eight (8) other IeCs are at different stages of development and not yet operational. Those that will be operationalised in the near future are in Eshane in Greytown, eNkandla and Ulundi in Kwazulu Natal and Mbizana and Qunu in the Eastern Cape. The Department continues to assist cooperatives to run IeCs in the Eastern Cape, Limpopo, North West and Northern Cape provinces.

Some of the achievements in respect of IeCs under development during the 2009’10 financial year include:

• Three IeCs, namely Ulundi (KwaZulu Natal), Qunu and Mbizana (both in the Eastern Cape) are at advanced stages of their Environmental Impact Assessments

• A sod-turning ceremony for the Qunu IeC was held in February 2010• The establishment and registration of the Mbizana and Qunu cooperatives with the Department of Trade and Industry in the Eastern Cape

in line with the cooperative framework for IeCs was completed • Two energy needs assessment surveys were done in Western Cape and Limpopo • Information sessions on energy safety and energy education were organised in seven Provinces, namely Western Cape, Eastern Cape,

Kwazulu-Natal, North West, Mpumalanga, Gauteng and Limpopo).

However, the allocation of land for IeCs and the operation of cooperatives to ensure the self-sustainability of IeCs remain a challenge.

Clean coal technologies

South Africa is richly endowed with coal and a coal-based economy, with more than 75% electricity generated from coal-fired power stations and about 22.5% of liquid fuels derived from coal-to-liquid plants. Cognisant of the concomitant negative impact of coal mining and energy generation from coal, the Department embarked on various initiatives to develop clean coal technologies and less environmentally threatening methods of using coal as an energy resource.

Among technology developments being considered and closely monitored is carbon capture and storage (CCS) or carbon sequestration, which entails the capturing and burying of carbon dioxide underground instead of letting it vent into the atmosphere to pollute the atmosphere and contribute to climate change. During 2009’10, the Department served as the Vice-Chair of the Policy Group of the Carbon Sequestration Leadership Forum (CSLF), which resulted in South Africa being elected as the Vice-Chair of the CSLF Technical Group. A Centre for CCS under the auspices of the South African Energy Research Institute (SANERI) was launched and South Africa hosted its first-ever CCS Conference in September 2009. This put South Africa on course for the development and deployment of CCS as part of its Long-Term Mitigation Strategy (LMTS) for climate change.

South African coal roadmap

In conjunction with the industry and related stakeholders, the Department developed the founding documents and requisite governance structure for the development of a South African Coal Roadmap. The objectives of the Coal Roadmap encapsulate the current contribution of the individual and collective components of the coal industry in South Africa; the local and international drivers that will shape the industry in the future; and the identification of the options that can be deployed to maximise future benefits for South Africa.

With stakeholders now on board, the actual development of the roadmap will commence during the 2010’11 financial year.

PROGRAMME 5

98

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PROGRAMME 5

100

Obj

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clud

ed

of b

ilate

ral a

gree

men

tsId

entif

y co

untri

es o

f stra

tegi

c im

porta

nce

and

initi

ate

bila

tera

l ne

gotia

tions

32

agre

emen

ts h

ave

been

sig

ned

with

Zam

bia

and

Vene

zuel

a.Ag

reem

ent s

igne

d: N

iger

ia w

as

pend

ing

but c

ance

lled

for p

oliti

cal

reas

ons.

Num

ber o

f mul

tilat

eral

ag

reem

ents

con

clud

ed

Iden

tify

coun

tries

of s

trate

gic

impo

rtanc

e an

d in

itiat

e m

ultil

ater

al

nego

tiatio

ns

3EU

ene

rgy

and

the

Clin

ton

foun

datio

n ag

reem

ents

to

be s

igne

d in

201

0/11

.Pa

rtici

patio

n in

the

Afric

a-So

uth

Amer

ica

(ASA

) C

orpo

ratio

n –

Sum

mit

in S

ep-0

9.

Met

hane

to m

arke

ts a

gree

men

t is

not y

et c

ompl

eted

.

Prov

ide

cred

ible

ac

cess

ible

in

form

atio

n

% im

plem

enta

tion

of

bila

tera

l / m

ultil

ater

al

agre

emen

ts

Esta

blis

h nu

mbe

r of e

xist

ing

agre

emen

ts a

nd M

OU

’s pe

ndin

g im

plem

enta

tion

30%

Agre

emen

t with

Nig

eria

pen

ding

impl

emen

tatio

n.

Iden

tify

impl

emen

ting

agen

ts a

nd

conc

lude

impl

emen

tatio

n pl

ans

Agen

ts h

ave

been

iden

tifie

d e.

g. E

skom

and

Pet

rosa

% im

prov

emen

t in

prov

isio

n of

acc

urat

e,

relia

ble

and

timel

y da

ta (J

OD

I Dat

a,

Ener

gy P

rice

Rep

ort,

APPA

Dat

a an

d ot

her

data

)

Impr

ove

data

col

lect

ion

met

hodo

logy

, whi

ch in

clud

es

(invo

lvem

ent o

f dat

a su

pplie

rs b

y m

eetin

g re

gula

rly)

50%

Ener

gy D

iges

t and

Ene

rgy

Pric

e R

epor

t hav

e al

so

been

com

plet

ed a

wai

ting

publ

icat

ion

All i

nitia

tives

are

cur

rent

ly o

n tra

ck.

How

ever

ava

ilabi

lity

of d

ata

from

N

ERSA

has

bee

n th

e bi

gges

t ch

alle

nge

as it

app

ears

that

they

ar

e un

able

to p

rovi

de th

e da

ta d

ue

to c

apac

ity/re

sour

ce c

onst

rain

ts.

Cha

lleng

e be

ing

expe

rienc

ed w

ith

obta

inin

g Pl

att’s

dat

a fo

r Ene

rgy

pric

e re

port

Setu

p in

stitu

tiona

l arr

ange

men

ts to

en

cour

age

the

shar

ing

of d

ata

in a

tim

ely

man

ner


101

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at 3

1 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

cePr

ovid

e cr

edib

le

acce

ssib

le

info

rmat

ion

Prov

ide

cred

ible

ac

cess

ible

dat

a an

d tim

ely

Ener

gy B

alan

ce

data

Sign

ing

and

impl

emen

tatio

n of

MO

U

betw

een

DM

E an

d St

ats

SA.

Red

uce

lag

in

data

sup

ply

30

mon

ths

Join

t Ene

rgy

Stat

istic

s Ta

sk T

eam

(JES

TT) h

as b

een

esta

blis

hed.

Ter

ms

of R

efer

ence

are

cur

rent

ly b

eing

dr

afte

d fo

r the

app

rova

l of t

he D

irect

or G

ener

al a

s w

ell a

s St

atis

ticia

n G

ener

al a

nd C

EO o

f NER

SA.

MO

U h

as b

een

sign

ed a

nd in

the

proc

ess

of

impl

emen

ting

the

MO

U.

Proj

ect o

n tra

ck

Dev

elop

an

Ener

gy S

tatis

tics

Met

hodo

logy

Man

ual

Inpu

ts h

ave

been

pro

vide

d to

the

Uni

ted

Nat

ions

on

the

Inte

rnat

iona

l Rec

omm

enda

tions

on

Ener

gy

Stat

istic

s M

anua

l. T

he m

anua

l will

serv

e as

a g

uide

to

the

deve

lopm

ent o

f the

SA

Man

ual.

Prov

ide

cred

ible

ac

cess

ible

dat

a an

d tim

ely

Ener

gy B

alan

ce

data

Ensu

re d

ata

supp

liers

are

au

fait

with

our

nee

ds to

rele

ase

and

publ

ish

data

regu

larly

and

ear

ly

Red

uce

lag

in

data

sup

ply

30

mon

ths

Join

t Oil

Dat

a In

itiat

ive

(JO

DI)

and

Afric

an P

etro

leum

Pr

oduc

ers

Asso

ciat

ion

(APP

A) D

ata

has

been

su

bmitt

ed

Alth

ough

JO

DI a

nd A

PPA

data

has

no

w b

een

subm

itted

. Obt

aini

ng

data

from

pro

vide

rs in

a ti

mel

y m

anne

r is

an o

ngoi

ng c

halle

nge

Prov

ide

cred

ible

ac

cess

ible

in

form

atio

n

Num

ber o

f pub

licat

ions

of

ene

rgy

data

En

gage

dat

a su

pplie

rs to

pre

vent

pu

blic

atio

ns b

eing

del

ayed

2En

ergy

Dig

est a

nd E

nerg

y Pr

ice

Rep

ort h

ave

been

co

mpl

eted

and

aw

aitin

g pu

blic

atio

nSt

atus

repo

rt on

pe

trole

um li

cenc

e ap

plic

atio

ns li

sted

on

DM

E w

ebsi

te

licen

sing

dire

ctor

ate

to c

ompi

le

repo

rt an

d po

st o

n w

ebsi

te1

per m

onth

Last

pub

licat

ion

was

don

e in

11

Mar

ch 2

010.

Th

is h

as b

een

done

on

mon

thly

ba

ses

sinc

e Ja

nuar

y 20

10.

Impr

oved

aw

aren

ess

and

repu

tatio

n of

D

ME

Num

ber o

f aw

aren

ess

cam

paig

ns c

ondu

cted

(N

umbe

r of P

PAA

awar

enes

s ca

mpa

igns

co

nduc

ted

- roa

d sh

ows,

wor

ksho

ps,

audi

o &

visu

al

adve

rtise

men

t, ex

hibi

tions

PPA

A aw

aren

ess

cam

paig

n to

co

nsci

entis

e pe

ople

abo

ut th

e ru

les

and

regu

latio

ns p

erta

inin

g to

the

licen

sing

of p

etro

leum

ope

ratio

ns,

prod

ucts

and

com

plia

nce

mon

itorin

g an

d en

forc

emen

t the

reto

At le

ast 2

ro

ad s

how

s pe

r qua

rter

/ reg

ion.

1

Qua

rterly

w

orks

hop

per

regi

on. 1

Bi-

annu

al p

ress

re

leas

e

No

road

sho

ws

or b

i ann

ual p

ress

rele

ase

acco

mpl

ishe

d du

e to

fina

ncia

l con

stra

ints

.

How

ever

Reg

iona

l ret

aile

r dea

ler w

orks

hops

wer

e at

tend

ed b

y R

egio

nal D

irect

ors

No

fund

ing

avai

labl

e

PROGRAMME 5

102

Inte

rnal

Pro

cess

es

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Effic

ient

Bus

ines

s Pr

oces

ses

Impr

ove

mon

itorin

g an

d en

forc

emen

t of

pol

icie

s/

legi

slat

ion

% o

f gui

delin

es d

evel

oped

in li

ne

with

legi

slat

ion

Esta

blis

h nu

mbe

r of g

uide

lines

re

quire

d70

%G

uide

lines

dev

elop

ed fo

r pub

lishi

ng

docu

men

ts in

Gov

ernm

ent G

azet

te;

guid

elin

es d

evel

oped

to d

eter

min

e th

e pr

ice

of L

PGD

evel

op g

uide

lines

% im

plem

enta

tion

of s

igne

d M

oU

betw

een

DM

E an

d SA

RS

wrt

fuel

sp

ecifi

catio

ns a

nd s

tand

ards

DM

E an

d SA

RS

initi

ativ

e to

m

onito

r com

plia

nce

and

enfo

rce

fuel

spe

cific

atio

ns a

nd s

tand

ards

re

gula

tions

Qua

rterly

pr

ogre

ss re

port

No

form

al M

oU s

igne

d w

ith S

ARS

sinc

e D

epar

tmen

t dis

cove

red

that

SAR

S do

es n

ot

cond

uct f

uel s

peci

ficat

ions

and

sta

ndar

ds

% re

duct

ion

in c

ompl

aint

s re

latin

g to

pro

cedu

ral i

ncon

sist

ency

Inst

itute

com

plai

nts

regi

ster

and

re

porti

ng s

yste

m90

%C

ompl

aint

s re

gist

er a

nd re

porti

ng s

yste

m

inst

itute

d to

reco

rd c

ompl

aint

s w

hen

rece

ived

Inst

itute

pro

cess

for d

ocum

entin

g co

mpl

aint

sD

irect

orat

e al

so in

stitu

ted

mon

itorin

g an

d fo

llow

-up

of a

ctio

ns ta

ken

by In

spec

tors

Num

ber o

f lic

ense

e co

mpl

ianc

e in

spec

tions

Iden

tify

prov

ince

s w

ith h

igh

prev

alen

ce o

f con

trave

ning

re

gula

tions

120

per m

onth

Mpu

mal

anga

, Lim

popo

, KZN

and

Eas

tern

C

ape

iden

tifie

d as

pro

vinc

es w

ith h

igh

prev

alen

ce o

f con

trave

ning

regu

latio

ns;

687

insp

ectio

ns c

ondu

cted

dur

ing

last

qua

rter

and

2,30

9 fo

r the

yea

r und

er re

view

; mon

thly

in

spec

tion

sche

dule

s an

d re

ports

from

re

gion

s; s

ched

ules

don

e at

the

begi

nnin

g of

th

e m

onth

and

repo

rts a

t ten

d of

the

mon

th

and

two

are

reco

ncile

d at

the

end

of th

e m

onth

Con

duct

com

plia

nce

insp

ectio

ns%

impr

ovem

ent i

n st

akeh

olde

r co

mpl

ianc

e (e

xter

nal)

Impl

emen

t pen

altie

s re

sulti

ng fr

om

non-

com

plia

nce

50%

Pena

lties

impl

emen

ted

alig

ned

with

Act

and

re

gula

tions

Ac

t and

regu

latio

ns

requ

ires

corre

ctiv

e ap

proa

ch b

efor

e no

n-co

mpl

ying

per

sons

can

be

char

ged

Anal

yse

com

plia

nce

insp

ectio

n re

ports

Com

plia

nce

insp

ectio

n re

ports

ana

lyse

d on

m

onth

ly b

asis


103

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

% im

prov

emen

t in

stak

ehol

der

com

plia

nce

(ext

erna

l)In

crea

se n

umbe

r of i

nspe

ctio

ns p

er

prov

ince

90%

Num

ber o

f ins

pect

ions

per

pro

vinc

e im

prov

ed

by 6

0.35

% fo

r the

200

9’10

fina

ncia

l yea

r; 2,

309

insp

ectio

ns c

ompl

eted

dur

ing

2009

’10

repo

rting

per

iod

Fram

ewor

k do

es n

ot a

llow

ef

fect

ive

com

plia

nce

mon

itorin

g, t

here

fore

PP

AA

revi

ewre

com

men

ded

Impr

ove

mon

itorin

g an

d en

forc

emen

t of

pol

icie

s/

legi

slat

ion

Esta

blis

h SA

Nat

iona

l Ene

rgy

Dev

elop

men

t Ins

titut

eD

evel

op b

usin

ess

plan

and

bud

get

with

Dep

artm

ent o

f Sci

ence

and

Te

chno

logy

(DST

), N

atio

nal E

nerg

y Ef

ficie

ncy

Agen

cy (N

AEE

A) a

nd

Sout

h Af

rican

Nat

iona

l Ene

rgy

Res

earc

h In

stitu

te (S

ANER

I) fo

r th

e es

tabl

ishm

ent o

f Sou

th A

frica

n N

atio

nal E

nerg

y D

evel

opm

ent

Inst

itute

(SAN

EDI)

Busi

ness

pla

n fo

r SAN

EDI

Busi

ness

cas

e cu

rrent

ly u

nder

revi

ew b

y D

PSA

and

Nat

iona

l Tre

asur

y; v

ario

us

enga

gem

ents

hel

d w

ith N

atio

nal T

reas

ury

NER

SA, D

oE a

nd

Nat

iona

l Tre

asur

y to

cl

arify

ope

ratin

g m

odel

an

d fu

ndin

g m

echa

nism

fo

r ene

rgy

effic

ienc

y;

busi

ness

cas

e to

cle

arly

ar

ticul

ate

SAN

EDI

stra

tegi

c po

sitio

ning

in

ener

gy re

sear

ch w

rt D

ST

and

TIA

Impl

emen

t Ene

rgy

Secu

rity

Mas

ter P

lan

(ESM

P) fo

r liq

uid

fuel

s

Set u

p a

task

team

to fo

cus

on

ensu

ring

the

adeq

uate

sup

ply

of fu

el

durin

g 20

10 W

orld

Cup

Addr

ess

ESM

P sh

ort-t

erm

st

rate

gic

as

wel

l as

polic

y an

d re

gula

tion

depe

nden

cies

Exem

ptio

n on

rele

vant

sec

tions

of C

ompe

titio

n Ac

t gra

nted

by

Com

petit

ion

Com

mis

sion

erSo

me

com

pani

es s

ubm

it in

com

plet

e/un

clea

r co

ntin

genc

y pl

ans

Mon

itor a

nd re

port

indu

stry

pro

gres

s an

d SO

E re

gard

ing

impl

emen

tatio

n of

ES

MP

initi

ativ

es/ p

roje

cts

Con

solid

ated

Ris

k M

atrix

com

plet

ed;

indi

vidu

al c

ontin

genc

y pl

ans

subm

itted

by

oil

com

pani

es

Del

ay in

sub

mis

sion

of

requ

ired

info

rmat

ion

by

som

e co

mpa

nies

resu

lted

in d

elay

s of

con

solid

atin

g in

form

atio

nBe

nchm

ark

agai

nst

inte

rnat

iona

l bes

t pr

actic

e

% s

tand

ards

that

mee

t bes

t pr

actic

eId

entif

y po

licie

s, p

roce

dure

s an

d pr

oces

ses

that

requ

ire b

ench

mar

king

100%

Iden

tifie

d de

velo

pmen

t of f

utur

e fu

el

spec

ifica

tions

and

sta

ndar

ds fo

r ben

chm

arki

ng

Una

vaila

bilit

y of

Tas

k Te

am m

embe

rs a

nd la

ck

of a

ctiv

e pa

rtici

patio

n (p

ar-

ticul

arly

Nat

iona

l Tre

asur

y)

PROGRAMME 5

104

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Alig

n po

licie

s, p

roce

dure

s an

d pr

oces

ses

with

bes

t pra

ctic

eIn

terd

epar

tmen

tal T

ask

Team

hel

d th

ree

mee

tings

, inc

l Dep

artm

ent o

f Env

ironm

enta

l Af

fairs

(DE

A) p

rese

ntat

ion;

sep

arat

e m

eetin

gs

held

with

Sou

th A

frica

n Pe

trole

um In

dust

ry

Asso

ciat

ion

(SAP

IA)

and

Nat

iona

l Ass

ocia

tion

of A

utom

obile

Man

ufac

ture

s of

Sou

th A

frica

(N

AAM

SA)

Rev

iew

and

de

velo

p po

licie

s,

proc

edur

es a

nd

proc

esse

s

% p

olic

ies

and

proc

edur

es

stan

dard

ised

1 W

orks

hops

and

issu

e of

gui

delin

es10

0%LP

G p

rice

regu

latio

ns fo

r res

iden

tial

cust

omer

s in

cl w

orki

ng ru

les

prom

ulga

ted

for

publ

ic c

omm

ent

Inco

rpor

atio

n of

Sta

te L

aw

Advi

sor’s

com

men

t mea

nt

chan

ge o

f cou

rse;

dat

a fo

r zo

ne p

ricin

g sy

stem

not

re

adily

ava

ilabl

e2

Pol

icy

and

stan

dard

s au

dit t

o de

term

ine

the

base

line

1

CC

S re

gula

tory

wor

ksho

p he

ld in

O

ctob

er 2

009;

par

ticip

ants

incl

indu

stry

, go

vern

men

t dep

artm

ents

and

inte

rnat

iona

l ex

perts

, ie

IEA;

repo

rt fro

m c

onsu

ltant

ex

pect

ed to

form

bas

is fo

r pro

posa

l to

dev

elop

CC

S le

gisl

ativ

e/re

gula

tory

fra

mew

ork

2 N

ERSA

indi

cate

d ne

ed fo

r rev

iew

bas

ed

on e

xper

ienc

e in

impl

emen

ting

Gas

Act

; m

eetin

g w

ill be

hel

d to

iden

tify

prop

osed

ch

ange

s an

d if

war

rant

ed, i

nclu

de it

in th

e Pa

rliam

enta

ry 2

010’

11 p

rogr

amm

e

Cha

lleng

e: in

fanc

y st

age

of C

CS

tech

nolo

gy

3 Id

entif

y ga

ps1

Po

licy

gap

in C

CS

2

Nee

d to

revi

ew G

as A

ct3

N

eed

to re

view

Pet

role

um P

rodu

ct

Amen

dmen

t Act

(PPA

A)

4 Ad

dres

s ga

psR

evie

ws:

PPA

A in

201

0; A

men

dmen

t Act

20

11’1

2; H

DSA

Em

pow

erm

ent i

n fo

urth

qu

arte

r 201

0’11

Proj

ect o

n ho

ld to

ac

com

mod

ate

othe

r ur

gent

prio

ritie

s 1

Audi

t to

esta

blis

h nu

mbe

r of

proc

edur

es to

be

deve

lope

d10

0%G

uide

line

for p

ublis

hing

doc

umen

t in

Gov

ernm

ent G

azet

te c

ompl

eted

for t

he

Dire

ctor

ate


105

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Rev

iew

and

de

velo

p po

licie

s,

proc

edur

es a

nd

proc

esse

s

% p

roce

dure

s al

igne

d w

ith

polic

ies

2 D

evel

op a

nd im

plem

ent p

roce

dure

s10

0%D

raft

Stra

tegi

c St

ocks

Pol

icy

final

ised

fo

r con

sulta

tion

with

oth

er g

over

nmen

t de

partm

ents

Effe

ctiv

e Se

rvic

e D

eliv

ery

Allo

catio

n of

ade

quat

e re

sour

ces

% a

lignm

ent o

f res

ourc

es to

op

erat

iona

l nee

dsAl

ign

busi

ness

pla

ns w

ith E

NE

50%

Spen

ding

pla

ns a

re a

ligne

d w

ith w

ork

plan

s de

spite

no

fund

ing

for e

xecu

tion

Build

ac

coun

tabi

lity

% im

plem

enta

tion

of b

alan

ced

scor

ecar

dAs

per

CS

initi

ativ

es10

0%M

anag

ers

mad

e ac

coun

tabl

e th

roug

h m

onth

ly

repo

rtsBu

ild a

nd m

anag

e se

rvic

e le

vel

agre

emen

ts

(SLA

s)

% v

ette

d SL

AsBe

nchm

ark

SLAs

aga

inst

bes

t pr

actic

e10

0%Ag

reem

ents

sig

ned

with

con

sulta

nts

(as

per

supp

ly c

hain

requ

irem

ents

)

% a

dher

ence

to S

LAs

Impl

emen

t and

revi

ew c

ompl

ianc

e w

ith S

LAs

70%

Esta

blis

h se

rvic

e st

anda

rds

% s

tand

ards

est

ablis

hed

Dev

elop

and

impl

emen

t SD

IP10

0%SI

DP

deve

lope

d an

d cu

rrent

ly re

porte

d qu

arte

rly

Und

erst

and

cust

omer

/ st

akeh

olde

r nee

ds

Surv

eys

cond

ucte

d to

det

erm

ine

cust

omer

/ sta

keho

lder

nee

ds1

Dra

ft an

d ci

rcul

ate

cust

omer

sa

tisfa

ctio

n su

rvey

Form

ulat

ing

cust

omer

sat

isfa

ctio

n su

rvey

; to

be fi

nalis

ed b

y fin

anci

al y

eare

nd2

Ana

lyse

resu

lts o

f sur

vey

Stak

ehol

der a

nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

tEd

ucat

e an

d em

pow

er

stak

ehol

ders

Con

vene

freq

uent

wor

ksho

ps,

conf

eren

ces,

sem

inar

s, s

umm

its

and

info

rmat

ion

sess

ions

PPA

A aw

aren

ess

cam

paig

n to

cr

eate

aw

aren

ess

abou

t rul

es a

nd

regu

latio

ns o

f lic

ensi

ng p

etro

leum

op

erat

ions

and

pro

duct

s, c

ompl

ianc

e m

onito

ring

and

enfo

rcem

ent

At le

ast t

wo

road

sho

ws

per

quar

ter/r

egio

n

No

road

sho

ws

nor b

i- an

nual

pre

ss re

leas

e du

e to

fina

ncia

l con

stra

ints

;re

gion

al re

tail

deal

er w

orks

hops

atte

nded

by

Reg

iona

l Dire

ctor

s

No

fund

ing

avai

labl

e

1 Q

uarte

rly

wor

ksho

p pe

r re

gion

2 Bi

-ann

ual

pres

s re

leas

eFr

eque

ncy

of w

orks

hops

, co

nfer

ence

s, s

emin

ars

and

sum

mits

and

info

rmat

ion

sess

ions

con

vene

d

Cle

arly

def

ined

Inte

grat

ed E

nerg

y Pl

anni

ng s

take

hold

er e

ngag

emen

t pr

oces

s as

par

t of I

EP s

trate

gy

Impr

oved

and

in

tegr

ated

en

ergy

pla

nnin

g pr

oces

s

Part

of IE

P de

velo

pmen

t pro

cess

; not

sta

rted

PROGRAMME 5

106

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Man

age

cust

omer

/ st

akeh

olde

r ex

pect

atio

ns

% ra

ting

of c

lient

sat

isfa

ctio

n su

rvey

Impr

ove

accu

racy

of r

epor

ting

60%

Cus

tom

er s

atis

fact

ion

surv

ey n

ot y

et

form

ulat

ed

Reg

iona

l offi

ces

only

st

arte

d to

rece

ive

appl

icat

ions

; una

ble

to

cond

uct c

usto

mer

sur

vey

Reg

ular

co

nsul

tatio

n an

d fe

edba

ck

Freq

uenc

y of

con

sulta

tion

and

feed

back

ses

sion

sKe

ep re

gula

r tel

epho

nic

cont

act

Wee

kly

Han

dle

all q

uerie

s fro

m P

resi

dent

ial h

otlin

e,

Min

iste

r, D

G a

nd D

DG

with

in s

even

wor

king

da

ys, i

ncl f

eedb

ack

to c

lient

; for

um o

n lic

ensi

ng is

sues

in c

onju

nctio

n w

ith O

pera

tions

D

irect

orat

e es

tabl

ishe

d at

regi

onal

offi

ces

Lear

ning

and

Gro

wth

Attra

ct, d

evel

op

and

reta

in s

kills

% re

duct

ion

in s

taff

turn

over

rate

Im

plem

ent H

R P

lan

2%Ju

nior

sta

ff m

ento

rshi

p a

prio

rity;

pla

nnin

g to

incl

ude

men

tors

hip

in s

uper

viso

rs’

perfo

rman

ce a

gree

men

ts; T

en p

ositi

ons

curre

ntly

vac

ant,

four

of t

en c

andi

date

s m

oved

to h

ighe

r pos

ition

s, tw

o in

tern

s tra

ined

an

d ap

poin

ted

to p

erm

anen

t Ene

rgy

Offi

cer

posi

tions

% re

duct

ion

in v

acan

cies

Impl

emen

t HR

Pla

n5%

Ten

vaca

nt p

ositi

ons

as a

t 31

Mar

ch 2

010;

re

crui

tmen

t ong

oing

% im

plem

enta

tion

of P

DPs

that

ar

e al

igne

d w

ith d

epar

tmen

tal

need

s

Impl

emen

t HR

D P

lan

50%

Offi

cial

s at

tend

trai

ning

rand

omly

acc

ordi

ng to

H

RD

Pla

n

% o

f tra

inee

s su

cces

sful

ly

com

plet

ed s

ecto

r- sp

ecifi

c pr

ogra

mm

es

Men

tor t

rain

ees

regu

larly

70%

Inte

rns

curre

ntly

und

ergo

ing

train

ing

and

men

torin

g w

ithin

Bra

nch

Num

ber o

f em

ploy

ees

on

men

tors

hip/

lear

ners

hip

prog

ram

mes

1 En

sure

ski

lls tr

ansf

er fr

om s

enio

r ex

perie

nced

to ju

nior

sta

ff w

ith

limite

d ex

perie

nce

10St

aff t

rain

ing

on p

etro

leum

pric

ing

ongo

ing,

w

ith o

ther

em

ploy

ees

not i

n pr

icin

g un

it to

tra

nsfe

r kno

wle

dge;

nin

e em

ploy

ees

are

bein

g m

ento

red

2 W

ork

with

em

ploy

ees

to tr

ansf

er

know

ledg

e


107

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Dev

elop

Kn

owle

dge

Man

agem

ent

Syst

ems

% c

ompl

etio

n of

Kno

wle

dge

Man

agem

ent S

yste

ms

Plan

Esta

blis

h ta

sk te

am h

eade

d by

C

omm

unic

atio

n C

hief

Dire

ctor

ate

100%

Com

mun

icat

ion

resp

onsi

bilit

y

Fina

lise

fram

ewor

k an

d de

velo

p IT

pl

atfo

rmIn

itiat

ed e

ffect

ive

fillin

g sy

stem

in c

onsu

ltatio

n w

ith re

gist

ryPr

oces

s on

hol

d du

e to

m

ove

to n

ew b

uild

ing

% im

plem

enta

tion

of K

now

ledg

e M

anag

emen

t Sys

tem

Pla

nU

pdat

e Kn

owle

dge

Man

agem

ent

Syst

em 1

%D

evel

oped

dat

abas

e of

all

stud

ies

unde

rtake

n w

ithin

Bra

nch

% m

anag

ers

com

plet

ed

lead

ersh

ip a

nd m

anag

emen

t co

urse

s

Exte

nsio

n of

WIT

S pr

ogra

mm

e70

%H

RD

resp

onsi

bilit

y

% R

etur

n on

Inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

t36

0˚ s

urve

y to

ol65

%H

RD

to d

evel

op to

ol

% im

prov

emen

t in

Empl

oym

ent

Equi

ty

Impl

emen

t DM

E EE

pla

nPe

r DM

E EE

Pl

anTw

o w

hite

s, tw

o In

dian

s, th

ree

colo

ured

s, 1

17

blac

ks%

pro

cure

men

t spe

nt o

n ta

rget

ed

grou

ps

Info

rm re

quis

ite s

uppl

iers

to re

gist

er

on d

atab

ase

50%

SCM

% c

ompl

ianc

e w

ith L

iqui

d Fu

els

Cha

rter

Rev

iew

impl

emen

tatio

n of

Cha

rter

60%

Cur

rent

ly b

eing

mon

itore

d bu

t to

limite

d ex

tent

Syst

ems

not i

n pl

ace

to

mon

itor c

ompl

ianc

e w

ith

Cha

rter

Num

ber o

f cor

e va

lues

aw

aren

ess

sess

ions

As p

er C

orpo

rate

Ser

vice

s pl

ans

Two

per q

uarte

r

% d

ecre

ase

in tr

ansg

ress

ions

of

the

code

of c

ondu

ctAs

per

Cor

pora

te S

ervi

ces

plan

s5%

Two

case

s ta

ken

to la

bour

rela

tions

% in

crea

se in

nom

inat

ions

for

Batho�Pe

le a

nd U

bunt

u Aw

ards

As p

er C

orpo

rate

Ser

vice

s pl

ans

50%

Bran

ch m

embe

r aw

arde

d Br

anch

Em

ploy

ee

of th

e Ye

ar a

war

d an

d an

othe

rre

ceiv

ed R

isin

g St

ar A

war

d

Fina

nce

Al

ignm

ent o

f bu

dget

with

st

rate

gy

% b

udge

t alig

ned

with

stra

tegi

c pr

iorit

ies

Dev

elop

spe

ndin

g pl

ans

in

conj

unct

ion

with

fina

nce

100%

Spen

ding

pla

ns d

evel

oped

at s

tart

of 2

009’

10

finan

cial

yea

rG

ross

ly in

adeq

uate

fu

ndin

g

Max

imis

e ut

ilisat

ion

of

reso

urce

s

Red

uce

redu

ndan

t ass

ets

(phy

sica

l) Im

plem

ent a

sset

mai

nten

ance

and

di

spos

al s

trate

gyId

entif

y an

d re

duce

re

dund

ant

asse

ts b

y 30

%

SCM

resp

onsi

bilit

y

Effe

ctiv

ely

man

age

budg

ets

% b

udge

t var

ianc

eM

onito

r act

ual e

xpen

ditu

re a

gain

st

budg

et (s

pend

ing

plan

s)5%

Mon

thly

exp

endi

ture

repo

rts d

one

and

corre

ctiv

e m

easu

res

impl

emen

ted

Varia

nce

abov

e ta

rget

due

to

inad

equa

te fu

ndin

gAd

equa

te p

roje

ct p

lann

ing

Not

ach

ieve

d du

e to

lack

of f

undi

ng

PROGRAMME 5

108

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s20

09/1

0Pr

ogre

ss a

s at

31 M

arch

201

0C

onst

rain

ts/re

ason

for u

nder

-per

form

ance

Effe

ctiv

ely

man

age

reve

nue

colle

ctio

n

% in

crea

se o

n lic

ense

fee

reve

nue

colle

ctio

nD

evel

op a

nd im

plem

ent a

pet

role

um

licen

se m

onito

ring

and

eval

uatio

n re

venu

e co

llect

ion

fram

ewor

k

70%

.

Man

age

cost

s ef

fect

ivel

yR

educ

tion

in c

onfir

med

frui

tless

, w

aste

ful a

nd u

naut

horis

ed

expe

nditu

re

Com

pare

exp

endi

ture

s to

bud

get

regu

arly

75%

Mon

thly

exp

endi

ture

repo

rts d

one

Cut

dow

n on

unn

eces

sary

ex

pend

iture

Bran

ch b

udge

t cen

tralis

ed d

ue to

insu

ffici

ent

fund

sPr

omot

e C

orpo

rate

G

over

nanc

e

% c

ompl

ianc

e w

ith P

FMA

Impl

emen

t com

plia

nce

fram

ewor

k10

0%M

onth

ly e

xpen

ditu

re re

ports

don

e to

che

ck

com

plia

nce

with

PFM

A


109

HYD

RO

CA

RB

ON

S A

ND

EN

ERG

Y PL

AN

NIN

G B

RA

NC

H

SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

T PL

AN

S

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008/

09)

Des

ired

Stan

dard

(200

9/10

)Pr

ogre

ss a

s at

31

Mar

ch 2

010

Issu

e lic

ence

s fo

r Pe

trole

um

prod

ucts

Petro

leum

m

anuf

actu

ring,

w

hole

sale

and

reta

il in

dust

ry

Qua

ntity

Petro

leum

Pro

duct

s Ac

t Lic

ensi

ng

Syst

em (P

PALS

) upd

ated

dai

ly;

upda

te s

tatis

tics

31 M

arch

201

0

Petro

leum

lice

nse

sta

tistic

s as

at

31 M

arch

200

9:

14,1

93 l

icen

ce a

pplic

atio

ns c

aptu

red

and

acce

pted

on

PPAL

S34

7

l

icen

ces

refu

sed

17

lic

ense

s re

ject

ed5,

463

l

icen

ces

gra

nted

3,58

0

lic

ence

s Is

sued

9,39

0

tot

al p

roce

ssed

for a

ll

lic

ense

type

s 4,

428

o

utst

andi

ng a

ccep

ted

ap

plic

atio

ns to

be

pr

oces

sed

Qua

ntity

1,40

0 ne

w li

cens

es fo

r all

licen

se ty

pes

issu

ed p

er

annu

m

NB

A si

te a

nd re

tail

licen

se

for t

his

purp

ose

are

not

acco

unte

d fo

r as

sepa

rate

lic

ense

s

Petro

leum

lice

nse

stat

istic

s as

at e

nd M

arch

201

0:

appr

ox 1

5,19

8 li

cens

e ap

plic

atio

ns c

aptu

red

and

acce

pted

on

PPAL

S

451

licen

ses

refu

sed

22 l

icen

ces

ejec

ted

6,39

9 lic

ense

s gr

ante

d5,

581

licen

ses

issu

ed12

,453

tota

l lic

ense

app

licat

ions

(all

type

) pro

cess

ed2,

745

outs

tand

ing

licen

se a

pplic

atio

ns to

be

proc

esse

d

Prog

ress

31

Dec

embe

r 200

9 to

31

Mar

ch 2

010

• N

o lic

ense

app

licat

ion

refu

sed

durin

g th

is

perio

d (a

pplic

atio

n de

cisi

ons

over

turn

ed b

y M

inis

ter,

and

thro

ugh

rect

ifica

tion

of d

ual

owne

rshi

p in

the

valu

e ch

ain)

• 19

9 lic

ense

app

licat

ions

gra

nted

dur

ing

the

abov

e pe

riod

• 10

1 lic

ense

app

licat

ions

issu

ed d

urin

g th

e ab

ove

perio

d •

300

licen

se a

pplic

atio

ns p

roce

ssed

in to

tal

from

31

Dec

embe

r 200

9 to

31

Mar

ch 2

010

Con

sulta

tion

Com

mun

icat

ion

to A

ssoc

iatio

ns, o

il co

mpa

nies

and

oth

er s

take

hold

ers;

lo

cal r

adio

bro

adca

stin

g

Con

sulta

tion

Roa

d sh

ows,

ad

verti

sem

ents

, vis

ual a

nd

audi

o m

edia

Due

to la

ck o

f fun

ding

this

was

not

impl

emen

ted.

Acce

ssD

ME

web

site

. fax

on

requ

est,

post

on

requ

est

Acce

ssR

egio

nal R

epre

sent

atio

nPr

ovis

ion

of m

obile

ser

vice

sR

egio

nal o

ffice

s ha

ve b

een

oper

atio

naliz

ed w

ith fu

ll st

aff c

ompl

imen

t, th

e w

ebsi

te is

con

stan

tly u

pdat

ed

with

lice

nce

appl

icat

ion

stat

uses

and

app

licat

ion

info

rmat

ion

e.g.

Act

, reg

ulat

ions

, app

licat

ion

form

s.

PROGRAMME 5

110

Key

Ser

vice

Serv

ice

Ben

efic

iary

Cur

rent

Sta

ndar

d (2

008/

09)

Des

ired

Stan

dard

(200

9/10

)Pr

ogre

ss a

s at

31

Mar

ch 2

010

Cou

rtesy

Dev

elop

men

t of g

uide

lines

Hel

p de

skC

ourte

syH

elp

desk

at r

egio

nal o

ffice

s an

d us

er m

anua

ls; u

ser-

frien

dly

licen

ce a

pplic

atio

n gu

idel

ines

Appl

icat

ions

gui

delin

es h

ave

been

dev

elop

ed;

they

will

be d

istri

bute

d to

the

regi

ons

and

post

ed

on o

ur D

oE w

ebsi

te p

endi

ng a

ppro

val f

rom

C

omm

unic

atio

n.

Ope

n an

d tra

nspa

rent

Publ

icat

ion

of in

form

atio

n in

G

over

nmen

t Gaz

ette

and

dis

tribu

tion

to o

il co

mpa

nies

Ope

n an

d tra

nspa

rent

Mor

e m

edia

exp

osur

e th

roug

h ad

verts

in

new

spap

ers,

radi

o an

d TV

Due

to b

udge

tary

con

stra

ints

thes

e is

sues

hav

e no

t be

en im

plem

ente

d

Info

rmat

ion

Info

rmat

ion

avai

labl

e on

requ

est,

via

help

des

k, w

ebsi

teIn

form

atio

nR

egio

nal r

epre

sent

atio

n,

mor

e co

llabo

ratio

n w

ith

stak

ehol

ders

;pa

mph

lets

; wor

ksho

ps a

nd

sem

inar

s, fl

yers

Reg

iona

l offi

ces

esta

blis

hed

and

the

Reg

iona

l D

irect

ors

task

ed w

ith e

ngag

ing

rele

vant

st

akeh

olde

rs; e

duca

tion

thro

ugh

pam

phle

ts a

nd

flyer

s aw

aitin

g fin

anci

al a

ppro

val

R

edre

ssR

edre

ss p

ast i

mba

lanc

es a

ndim

prov

e BE

E pa

rtici

patio

nR

edre

ssIm

prov

e te

chno

logy

use

d to

trac

k pr

ogre

ss o

n H

DSA

pa

rtici

patio

n;

advo

cacy

initi

ativ

es o

n Pe

trole

um s

ecto

r spe

cific

in

itiat

ives

PPLA

S 2

proj

ect h

as b

een

canc

elle

d du

e to

lack

of

del

iver

y fro

m a

ppoi

nted

con

sulta

nts;

CFO

offi

ce

with

Pet

role

um C

ontro

ller’s

offi

ce w

ill em

ploy

new

co

nsul

tant

s to

con

duct

this

pro

ject

Valu

e fo

r m

oney

Nee

d to

impr

ove

clie

nt in

terfa

ceVa

lue

for

mon

eyR

obus

t clie

nt in

terfa

ce a

nd

impr

oved

turn

arou

nd ti

mes

Offi

ce o

f the

Con

trolle

r alw

ays

in c

onsu

ltatio

n w

ith

clie

nts

and

easi

ly a

cces

sibl

e Ti

me

Plan

ning

to is

sue

1,20

0 ne

w li

cens

es

by e

nd M

arch

201

0 N

B: S

ite a

nd

reta

il lic

ense

for t

his

purp

ose

not

acco

unte

d fo

r as

sepa

rate

lice

nses

Tim

eAl

l new

lice

nses

issu

ed

in li

ne w

ith p

resc

ribed

tim

elin

es

A pl

an h

as b

een

put i

n pl

ace

for t

he is

suin

g of

lic

ence

s w

ithin

the

pres

crib

ed ti

mel

ines

; Reg

iona

l D

irect

ors

will

assi

st

Cos

tIn

itiat

ing

prog

ram

mes

to re

ach

out t

o st

akeh

olde

rs; p

rogr

amm

es n

eed

to

be c

oste

d

Cos

tAd

equa

te c

ostin

gR

egio

nal D

irect

ors

curre

ntly

invo

lved

in d

eale

r co

unci

ls m

eetin

g an

d th

e D

irect

orat

e is

als

o av

aila

ble

on re

ques

t for

mee

tings

. H

RAt

tract

and

reta

in s

taff

HR

Impr

oved

pro

duct

ivity

and

em

ploy

ee s

atis

fact

ion.

Tra

in

peop

le to

acq

uire

mor

e qu

alita

tive

and

quan

titat

ive

anal

ysis

ski

lls.

Anal

ysts

and

Reg

iona

l sta

ff u

nder

wen

t a c

ours

e to

giv

e th

em a

goo

d un

ders

tand

ing

of th

e bu

sine

ss

envi

ronm

ent.

This

will

assi

st th

em a

naly

sing

and

ev

alua

ting

appl

icat

ions

bro

ught

in b

y ap

plic

ants


111

PROGRAMME 6: ELECTRICITY, NUCLEAR AND CLEAN ENERGY

Purpose: To govern the Electricity, Nuclear and Clean Energy sectors with special emphasis on secure supply, universal access to electricity, development of the nuclear sector, diversification of energy sources and the promotion of clean energy technologies.

Measureable objectives: To ensure a well-managed efficient, safe and cost-effective electricity and nuclear industry in South Africa, through policy, legislation and regulations. Achieving increased access to electricity and globally competitive electricity prices within a safe, clean and healthy industry.

SERVICE DELIVERY

Conditional Grants

Overview�of�conditional�grants

Schedule 6 and 7 Integrated National Electrification Programme – Municipal Programme

Province Total Allocation

R’000

Total Transfer

R’ 000

Total Expenditure

R ‘000Eastern Cape 234,300 234,300 129,252Free State 88,456 87,988 58,709Gauteng 82,580 75,740 61,492Kwa-Zulu Natal 123,303 123,303 83,222Limpopo 139,761 134,681 70,857Mpumalanga 98,436 98,436 44,351Northern Cape 28,675 28,675 13,685North West 59,122 52,967 7,658Western Cape 78,324 78,324 42,204

TOTAL 932,957 914,413 511,430

Eskom Programme


R’000

Total Transfer

R’ 000

Total Expenditure

R ‘000Eastern Cape 397,753 397,753 375,724Free State 50,708 50,708 42,976Gauteng 94,150 94,150 107,744Kwa-Zulu Natal 385,057 385,057 394,533Limpopo 183,416 183,416 120,063Mpumalanga 99,843 99,843 71,218Northern Cape 31,540 31,540 19,915North West 99,209 99,209 85,629Western Cape 125,689 125,689 103,167

TOTAL 1,467,365 1,467,365 1,320,971

PROGRAMME 6

112

Eskom backlog: Schools and Clinics


R’000

Total Transfer

R’ 000

Total Expenditure

R ‘000Eastern Cape 29,184 29,184 4,014Free State 2,500 2,500 12Gauteng - - -Kwa-Zulu Natal 100,929 100,929 20,980Limpopo 9,500 9,500 3Mpumalanga 4,500 4,500 -Northern Cape - - -North West 2,337 2,337 -Western Cape - - -

TOTAL 148,950 148,950 25,009

Connections: Households and Schools

Province Planned household

connections

Actual household connections`2009/10

Total household connections achieved in 2009’10 incl

outstanding connections from previous years

Planned schools

connections

Actual schools connections

Eastern Cape 8,315 75 4,992Free State 8,407 5,356 6,459Gauteng 4,139 0 1,0741Kwa-Zulu Natal 16,763 9,849 16,119Limpopo 17,434 2,153 6,617Mpumalanga 7,122 3,707 8,244 2 2North West 5,588 0 840Northern Cape 1,503 597 1,247Western Cape 6,992 3,343 5,467

TOTAL 76,263 25,080 60,726 2 2

Non-grid Schools

Province Planned Connections Actual ConnectionsEastern Cape 59 59Free StateGautengKwa-Zulu Natal 94 94 LimpopoMpumalangaNorth WestNorthern CapeWestern Cape

TOTAL 153 153


113

Socio-economic indicators

Socio-economic indicators for the 2009’10 financial year

Province Total Programme Expenditure

Total BEE /BWO/ SMME Expenditure

BEE Expenditure BWO and SMME Expenditure

Eastern Cape 331,185,046.71 278,560,182.28 190,382,603.34 88,177,578.94Free State 48,754,866.31 22,754,056.16 17,818,338.09 4,935,718.07Gauteng 71,950,766.58 31,927,178.26 23,062,584.20 8,864,594.06Kwa-Zulu Natal 303,134,428.59 166,821,208.82 113,651,919.10 53,169,289.72Limpopo 156,701,639.07 83,794,782,51 63,187,015.31 20,607,767.20Mpumalanga 95,468,626.45 33,942,275.40 26,154,506.30 7,787,769.10North West 78,897,257.50 42,080,093.30 31,871,266.18 10,208,827.12Northern Cape 28,809,747.10 9,946,967.71 7,743,981.35 2,202,986.36Western Cape 52,829,073.54 18,864,091.52 14,040,409.70 4,823,681.82

Total 1,167,731,451.85 688,690,835.96 487,912,623.87 200,778,212.39

PROGRAMME 6

114

MEA

SUR

AB

LE O

BJE

CTI

VES,

KEY

AC

TIVI

TIES

AN

D M

EDIU

M –

TER

M O

UTP

UT

TAR

GET

S

Stak

ehol

der/C

usto

mer

Mea

sure

sO

bjec

tives

Mea

sure

sIn

itiat

ives

Targ

ets

09’1

0Pr

ogre

ss a

s at

31

Dec

embe

r 200

9C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

ceIm

prov

e tu

rnar

ound

tim

es%

adh

eren

ce

to p

resc

ribed

/ le

gisl

ated

tim

efra

mes

Com

plia

nce

with

pres

crib

ed ti

mef

ram

es in

le

gisl

atio

n, re

gula

tions

an

d SL

As

100%

34 C

DM

pro

ject

s ap

prov

ed (3

3 PI

Ns

and

4 PD

Ds)

and

15

proj

ects

del

ayed

55 a

utho

risat

ions

issu

ed fo

r nuc

lear

mat

eria

l and

rela

ted

mat

eria

l, an

d nu

clea

r rel

ated

equ

ipm

ent.

Del

ay in

the

sign

ing

of s

ubm

issi

on

Non

e

Res

pons

e to

que

ries

Impl

emen

t doc

umen

t m

anag

emen

t sys

tem

Five

wor

king

da

ysN

ot im

plem

ente

dSy

stem

dev

elop

men

t req

uire

s in

volv

emen

t of o

ther

Dire

ctor

ates

, ie

IT, R

egis

try

SLA

ente

red

into

w

hich

iden

tifie

s st

akeh

olde

rs

Iden

tify

stak

ehol

ders

w

ith w

hom

to e

nter

into

SL

A

100%

Dra

ft SL

A in

pla

ce (N

ucle

ar N

on-P

rolif

erat

ion

Dire

ctor

ate

final

isin

g M

oU w

ith S

ARS

to im

port

/exp

ort n

ucle

ar m

ater

ial,

rela

ted

equi

pmen

t and

mat

eria

l

Dire

ctor

ate

awai

ting

lega

l gui

danc

e fro

m D

oE L

egal

Ser

vice

s

Impr

ove

ener

gy

awar

enes

sN

umbe

r of

awar

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

mee

tings

Hos

ting

of w

orks

hops

, sw

itch-

ons

and

Publ

ic

Safe

ty In

form

atio

n Fo

rum

mee

tings

10•

Nin

e w

orks

hops

on

elec

trific

atio

n pr

ogra

mm

e he

ld in

all

prov

ince

s•

Eigh

t wor

ksho

ps o

n C

DM

hel

d in

Gau

teng

, Kw

a-Zu

lu

Nat

al, F

ree

Stat

e, E

aste

rn C

ape,

Nor

th W

est,

Wes

tern

C

ape

and

Lim

popo

•

Four

ene

rgy

effic

ienc

y w

orks

hops

hel

d •

One

wor

ksho

p pr

esen

ted

on c

ompl

ianc

e fo

r au

thor

isat

ions

of n

ucle

ar m

ater

ial a

nd re

late

d m

ater

ial,

and

nucl

ear-

rela

ted

equi

pmen

t

Wor

ksho

ps fo

r Mpu

mal

anga

and

N

orth

ern

Cap

e ca

ncel

led

due

to lo

w

resp

onse

Impr

ove

Publ

ic/

Priv

ate

Partn

ersh

ips

Intro

duct

ion

of n

ew

gene

ratio

n ca

paci

ty

– re

new

able

/non

- re

new

able

.

Intro

duce

IPP

bid

prog

ram

me

1,10

0 M

WG

uara

ntee

s ob

tain

ed fr

om N

atio

nal T

reas

ury

to p

urch

ase

land

for I

PP; f

inan

cial

clo

se b

efor

e en

d M

arch

201

0 no

t ac

hiev

ed d

ue to

out

stan

ding

mat

ters

and

Esk

om’s

finan

cial

pr

oble

ms;

24

MW

rene

wab

le e

nerg

y pr

ojec

ts a

ppro

ved

durin

g th

e 20

09’1

0 fin

anci

al y

ear

Prot

ract

ed n

egot

iatio

ns a

nd fi

nanc

ial

diffi

culti

es o

f sta

keho

lder

s


115

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at 3

1 D

ecem

ber 2

009

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Prov

ide

Ener

gy

Polic

y an

d re

gula

tory

fra

mew

ork

and

stre

amlin

e ov

ersi

ght

proc

ess

Num

ber o

f rel

evan

t po

licie

s in

trodu

ced

Dev

elop

new

pol

icie

s an

d im

plem

ent-a

tion

plan

s

4Tw

o po

licie

s co

mpl

eted

, tw

o dr

afte

d N

ucle

ar E

nerg

y Po

licy

Impl

emen

tatio

n Pl

an b

eing

dev

elop

ed

Rev

iew

of R

enew

able

Ene

rgy

Whi

te P

aper

del

ayed

due

to

insu

ffici

ent f

unds

with

in D

epar

tmen

t; nu

clea

r fue

l sup

ply

stra

tegy

bei

ng d

rafte

d w

ith le

gisl

ativ

e re

view

and

ski

lls

dem

and

anal

ysis

per

form

ed a

nd re

quire

d re

gula

tions

id

entif

ied

Lack

of c

oope

ratio

n fro

m E

skom

an

d D

PE to

dev

elop

pro

cure

men

t an

d fu

ndin

g st

rate

gies

(DPE

of

opin

ion

that

fund

ing

stra

tegy

is th

eir

man

date

, the

refo

re b

oth

parti

es d

id

not p

artic

ipat

e in

the

Com

mitt

ee);

budg

etar

y co

nstra

ints

Num

ber o

f re

gula

tory

fra

mew

ork

docu

men

ts a

nd

plan

s in

trodu

ced

for r

enew

able

en

ergy

and

ene

rgy

effic

ienc

y

Dev

elop

men

t of t

he

Reg

ulat

ory

Fram

ewor

k an

d Pl

ans

3D

raft

Sola

r Wat

er H

eatin

g fra

mew

ork

deve

lope

d an

d se

nt

for p

ublic

con

sulta

tion

in N

ovem

ber 2

009;

ene

rgy

effic

ienc

y st

rate

gy re

view

not

com

plet

ed d

ue to

indu

stria

l sec

tor

com

men

ts a

bout

set

ting

ener

gy e

ffici

ency

targ

ets

Biof

uels

impl

emen

tatio

n pl

an n

ot b

e co

mpl

eted

due

to

finan

cing

cha

lleng

es

Prov

ide

Ener

gy

Polic

y an

d R

egul

ator

y Fr

amew

ork

and

stre

amlin

e th

e ov

ersi

ght p

roce

ss

Prom

ulga

tion

of

rele

vant

regu

latio

ns

Dev

elop

regu

latio

ns

unde

r rel

evan

t leg

isla

tion

9 T

he fo

llow

ing

five

(5 )

regu

latio

ns w

ere

deve

lope

d:R

egul

atio

n on

Fee

s fo

r Nuc

lear

Aut

horis

atio

ns p

ublis

hed

Reg

ulat

ions

on

Cat

egor

isat

ion

of N

ucle

ar In

stal

latio

ns

awai

ting

conc

urre

nce

of th

e M

inst

er o

f Fin

ance

Dra

fting

of p

hysi

cal p

rote

ctio

n in

pro

gres

sD

rafti

ng o

f non

-pro

lifer

atio

n re

gula

tions

in p

rogr

ess

Dra

ft EE

regu

latio

ns p

repa

red,

sub

mitt

ed to

lega

l ser

vice

s fo

r co

mm

ent a

nd D

TI e

ngag

emen

ts u

nder

way

Lim

ited

capa

city

Lim

ited

capa

city

DTI

to a

men

d so

me

regu

latio

ns

to e

nfor

ce e

nerg

y ef

ficie

ncy

perfo

rman

ce s

tand

ards

and

re

quire

men

tsAl

ignm

ent o

f SO

E ac

tiviti

es w

ith D

ME

obje

ctiv

es

Rev

iew

sha

reho

lder

co

mpa

cts

and

busi

ness

pl

ans

of id

entif

ied

entit

ies

100%

All s

trate

gic

plan

s, c

orpo

rate

pla

ns a

nd S

hare

hold

er

Com

pact

s fo

r 200

9’10

fina

ncia

l yea

r rev

iew

ed fo

r alig

nmen

t w

ith D

epar

tmen

t’s o

bjec

tives

and

app

rove

d af

ter d

iscu

ssio

n w

ith re

leva

nt S

OEs

Non

e

PROGRAMME 6

116

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s09

’10

Prog

ress

as

at 3

1 D

ecem

ber 2

009

Con

stra

ints

/reas

on fo

r und

er-

perf

orm

ance

Prov

ide

cred

ible

ac

cess

ible

in

form

atio

n an

d su

ppor

t

Info

rmat

ion

and

docu

men

tatio

n pr

ovid

ed to

targ

eted

au

dien

ce

Hos

ting

of a

war

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

Ener

gy

Foru

ms

100%

9 w

orks

hops

hel

d

Prov

inci

al w

orks

hop

on E

lect

rific

atio

n Pr

ogra

mm

e he

ld in

all

nine

pro

vinc

es

8 p

rovi

ncia

l wor

ksho

ps o

n C

DM

con

duct

ed (G

aute

ng, K

wa-

Zulu

Nat

al, F

ree

Stat

e, E

aste

rn C

ape

,Nor

th W

est,

Wes

tern

C

ape

and

Lim

popo

)

One

wor

ksho

p co

nduc

ted

on a

utho

risat

ion

com

plia

nce

for

nucl

ear a

nd -r

elat

ed m

ater

ial a

nd n

ucle

ar-r

elat

ed e

quip

men

t

None

Wor

ksho

ps fo

r Mpu

mal

anga

and

N

orth

ern

Cap

e w

ere

canc

elle

d du

e to

low

resp

onse

.

Num

ber o

f en

gine

erin

g st

uden

ts d

eplo

yed

at

mun

icip

aliti

es

Co-

ordi

natin

g w

ith a

nd

supp

ortin

g m

unic

ipal

ities

100

100

stud

ents

dep

loye

d at

mun

icip

aliti

es a

nd c

ontra

cts

expi

red

31 D

ecem

ber 2

009;

pro

gram

me

not c

ontin

uing

due

to

lim

ited

fund

s

Non

e

Prom

ote

acce

ssib

le,

affo

rdab

le a

nd

sust

aina

ble

ener

gy

reso

urce

s

Num

ber o

f ho

useh

olds

, sch

ools

co

nnec

ted

and

subs

tatio

ns b

uilt

Plan

, im

plem

ent a

nd

over

see

Inte

grat

ed

Nat

iona

l Ele

ctrif

icat

ion

Prog

ram

me

150,

000

hous

ehol

ds,

2,80

0 sc

hool

s,

10 s

ubst

atio

ns

Year

–to

-dat

e co

nnec

tions

as

at 3

1 M

arch

201

0:

• To

tal c

onne

ctio

ns 1

67,11

9

- Es

kom

:106

393

-

Mun

icip

aliti

es 6

0,72

6 20

09’1

0 –

25,0

80

20

08’0

9 –2

4,64

8

20

06’0

7’08

– 1

1,02

8•

Tota

l sch

ools

ach

ieve

d 1,

035

• To

tal s

ubst

atio

ns, s

even

(7) c

ompl

eted

with

rem

aini

ng

thre

e es

timat

ed to

be

com

plet

ed b

y en

d Ap

ril 2

010

Del

ay d

ue to

mun

icip

aliti

es b

usy

with

pre

viou

s ye

ar’s

proj

ects

; Esk

om

chal

leng

ed b

y la

te d

eliv

ery

of

mat

eria

l; di

fficu

lties

with

terr

ain

on

som

e K

ZN p

roje

cts

Def

ects

iden

tifie

d du

ring

com

mis

sion

ing,

inco

rrect

fo

unda

tions

and

pro

long

ed d

eliv

ery

of c

ontro

l pan

els

Prom

ote

acce

ssib

le,

affo

rdab

le a

nd

sust

aina

ble

ener

gy

reso

urce

s

Soci

o-ec

onom

ic

impa

ct o

f the

im

plem

enta

tion

of

Inte

grat

ed N

atio

nal

Elec

trific

atio

n Pr

ogra

mm

e

Mon

itor a

nd e

valu

ate

Inte

grat

ed N

atio

nal

Elec

trific

atio

n Pr

ogra

mm

e

5,00

0 ne

w jo

bs

crea

ted;

800

ne

w le

arne

rs

train

ed

2008

’09

roll-

over

s:

2,0

28 jo

bs a

nd 3

99 le

arne

rs20

09’1

0:

5,5

09 jo

bs a

nd 3

48

lear

ners

Tota

l to

date

:

7,

537

jobs

and

747

lear

ners


117

Inte

rnal

Pro

cess

es

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch 2

10C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

ce

Effic

ient

Bus

ines

s Pr

oces

ses

Rev

iew

inte

rnal

po

licie

s an

d pr

oced

ures

Num

ber o

f id

entif

ied

polic

ies

and

proc

edur

es

revi

ewed

and

im

plem

ente

d

Iden

tify

all o

utda

ted

polic

ies

and

proc

edur

es

for i

nter

nal b

usin

ess

proc

esse

s an

d al

ign

with

th

e re

vise

d pr

oces

ses

100%

Exis

ting

wor

k pr

oces

ses

and

proc

edur

es s

till v

alid

Dev

elop

Con

sist

ent

Mon

itorin

g an

d En

forc

emen

t G

uide

lines

% g

uide

lines

is

sued

in li

ne w

ith

legi

slat

ion

Dev

elop

gui

delin

es in

lin

e w

ith le

gisl

atio

n10

0%N

ucle

ar a

utho

risat

ions

enf

orce

men

t gui

delin

es in

pla

ce

Impl

emen

tatio

n of

re

leva

nt le

gisl

atio

n%

impr

ovem

ent

in s

take

hold

er

com

plia

nce

(ext

erna

l)

Mon

itor c

ompl

ianc

e w

ith

legi

slat

ion

30%

Nuc

lear

non

- pro

lifer

atio

n ac

com

pani

ed N

ECSA

, Saf

egua

rds

Div

isio

n to

per

form

saf

egua

rds

insp

ectio

ns

Benc

hmar

k ag

ains

t Be

st P

ract

ice

% s

tand

ards

be

nchm

arke

d ag

ains

t bes

t pra

ctic

e

Rev

iew

sta

ndar

ds in

line

w

ith b

est p

ract

ice

Ener

gy m

anag

emen

t sta

ndar

d (S

ANS9

41) i

n co

nsul

tatio

n pr

oces

s (S

ABS

coor

dina

ting)

; Sta

ndar

ds fo

r ene

rgy

effic

ient

bu

ildin

gs (S

ANS2

04),

mea

surin

g, v

erifi

catio

n, a

nd d

ecod

ers

com

plet

ed

Effe

ctiv

e Se

rvic

e D

eliv

ery

Build

acc

ount

abilit

y an

d te

amw

ork

% im

plem

enta

tion

of B

alan

ced

Scor

e C

ard

As p

er C

orpo

rate

Se

rvic

es p

lan

100%

Ref

er to

Cor

pora

te S

ervi

ces

repo

rt

Esta

blis

h se

rvic

e st

anda

rds

and

man

age

Serv

ice

Leve

l Agr

eem

ents

% s

ervi

ce s

tand

ards

es

tabl

ishe

d w

ith

rele

vant

Bra

nche

s

Esta

blis

h se

rvic

e st

anda

rds

with

rele

vant

Br

anch

es

100%

See

atta

ched

ser

vice

del

iver

y im

prov

emen

t pla

ns

% a

dher

ence

to

SLAs

Con

tinuo

us e

ngag

emen

t w

ith re

leva

nt B

ranc

hes

100%

No

inte

r-Bra

nch

SLAs

; con

tinuo

us e

ngag

emen

t with

all

Bran

ches

thro

ugh

EXC

O a

nd IR

P2 p

roce

ss

% a

lignm

ent o

f fin

anci

al re

sour

ces

with

ope

ratio

nal

need

s

Budg

et w

orks

hop

100%

Atte

nded

wor

ksho

ps o

n M

TEF

host

ed b

y N

atio

nal T

reas

ury

Cos

ting

of a

ll ac

tiviti

esSu

bmitt

ed s

pend

ing

plan

sAn

alys

is o

f bud

get

Mon

thly

bud

get i

nput

ana

lysi

s se

nt to

Fin

ance

Su

bmis

sion

of b

udge

t pr

opos

alSu

bmitt

ed p

ropo

sal f

or a

dditi

onal

fund

s ab

ove

base

line

and

capi

tal a

nd in

frast

ruct

ure

proj

ects

to F

inan

ce d

urin

g M

TEF

proc

ess

PROGRAMME 6

118

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch 2

10C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

ceAl

loca

tion

of

appr

opria

te

reso

urce

s

% re

sour

ces

per

func

tion

Alig

n hu

man

cap

ital

and

othe

r res

ourc

e re

quire

men

ts w

ith

func

tions

100%

In p

rogr

ess;

not

all

reso

urce

requ

irem

ents

fully

alig

ned

with

fu

nctio

ns d

ue to

spl

it of

Dep

artm

ent

Dep

artm

ent’s

spl

it

Und

erst

and

cust

omer

/ st

akeh

olde

r nee

ds

Surv

ey c

ondu

cted

to

und

erst

and

cust

omer

nee

ds

Con

duct

soc

io-

econ

omic

impa

ct s

tudy

on

ele

ctrif

icat

ion

1N

ot c

ondu

cted

C

hief

Dire

ctor

ate:

Ele

ctric

ity

repr

iorit

ised

bud

get f

or im

pact

stu

dy

to th

e El

ectri

city

Sup

ply

Dire

ctor

ate

proj

ect

Con

duct

nuc

lear

st

akeh

olde

r sur

vey

Nuc

lear

sta

keho

lder

sur

vey

not d

ue d

urin

g re

porti

ng p

erio

d,

plan

ned

for 2

010

Con

duct

cle

an e

nerg

y st

akeh

olde

r sur

vey

Stak

ehol

der a

nd C

usto

mer

Rel

atio

nshi

p M

anag

emen

tEd

ucat

e an

d en

gage

st

akeh

olde

rsN

umbe

r of

awar

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

mee

tings

Hos

ting

awar

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

Publ

ic

Safe

ty In

form

atio

n Fo

rum

mee

tings

109

Educ

ate

and

enga

ge

stak

ehol

ders

Num

ber o

f aw

aren

ess

rais

ing

wor

ksho

ps,

switc

h-on

s an

d m

eetin

gs

Hos

ting

of a

war

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

Publ

ic

Safe

ty In

form

atio

n Fo

rum

mee

tings

10Pr

ovin

cial

wor

ksho

p on

Ele

ctrif

icat

ion

Prog

ram

me

held

on

all

nine

pro

vinc

es

Eigh

t pro

vinc

ial w

orks

hops

on

CD

M c

ondu

cted

in G

aute

ng,

Kwa-

Zulu

Nat

al, F

ree

Stat

e, E

aste

rn C

ape,

Nor

th W

est,

Wes

tern

Cap

e an

d Li

mpo

po

One

wor

ksho

p co

nduc

ted

on a

utho

risat

ion

com

plia

nce

for

nucl

ear -

and

rela

ted

mat

eria

l and

nuc

lear

-rel

ated

equ

ipm

ent

Man

age

sust

omer

/ st

akeh

olde

r ex

pect

atio

ns

% ra

ting

on c

lient

sa

tisfa

ctio

n su

rvey

Con

duct

ann

ual c

lient

sa

tisfa

ctio

n su

rvey

60%

Not

don

e

Rev

iew

resu

lts o

f sur

vey

and

addr

ess

iden

tifie

d m

ater

ial i

ssue

s


119

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch 2

10C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

ceR

egul

ar c

onsu

ltatio

n an

d fe

edba

ckFr

eque

ncy

of

cons

ulta

tion

and

feed

back

ses

sion

s

Hos

ting

awar

enes

s ra

isin

g w

orks

hops

, sw

itch-

ons

and

Publ

ic

Safe

ty In

form

atio

n Fo

rum

mee

tings

10Pr

ovin

cial

Wor

ksho

p on

Ele

ctrif

icat

ion

Prog

ram

me

wer

e he

ld

on a

ll ni

ne p

rovi

nces

Seve

n p

rovi

ncia

l wor

ksho

ps o

n C

DM

con

duct

ed in

Gau

teng

, Kw

a-Zu

lu N

atal

, Fre

e St

ate,

Eas

tern

Cap

e, N

orth

Wes

t,

Wes

tern

Cap

e an

d Li

mpo

po

One

wor

ksho

p co

nduc

ted

on a

utho

risat

ion

com

plia

nce

for

nucl

ear -

and

rela

ted

mat

eria

l and

nuc

lear

-rel

ated

equ

ipm

ent

Driv

e in

nova

tion

% in

nova

tion

proj

ects

im

plem

ente

d

Iden

tify,

pla

n, im

plem

ent

and

mon

itor p

roje

cts

10%

Not

don

e

Fina

nce

Alig

nmen

t of b

udge

t w

ith s

trate

gy%

bud

get a

ligne

d w

ith s

trate

gic

prio

ritie

s

Dev

elop

spe

ndin

g pl

ans

in c

onju

nctio

n w

ith

finan

ce

100%

Subm

itted

spe

ndin

g pl

ans

Effe

ctiv

ely

man

age

budg

ets

% b

udge

t var

ianc

eM

onito

r act

ual

expe

nditu

re a

gain

st

budg

et (s

pend

ing

plan

s)

5% v

aria

nce

Spen

t 52%

of t

otal

allo

catio

n

Tran

sfer

s as

at 3

1 M

arch

201

0:To

tal t

rans

fers

R1,

168,

645,

864.

84Es

kom

R

1,1

67,7

31,4

51.8

4M

unic

ipal

ities

R

914

, 413

.00

Non

Grid

No

Fund

s tra

nsfe

rred

in 2

009’

10 fi

nanc

ial y

ear

Out

stan

ding

pay

men

ts a

nd d

elay

in

trans

fer

Tran

sfer

s to

Esk

om b

ased

on

cash

flo

w; n

ot a

ll m

unic

ipal

ities

requ

este

d tra

nsfe

rs; t

ende

ring

proc

ess

took

lo

nger

than

ant

icip

ated

PROGRAMME 6

120

Obj

ectiv

esM

easu

res

Initi

ativ

esTa

rget

s 20

09’1

0Pr

ogre

ss a

s at

31

Mar

ch 2

10C

onst

rain

ts/re

ason

for u

nder

-pe

rfor

man

ceM

anag

e co

sts

effe

ctiv

ely

Red

uctio

n in

co

nfirm

ed fr

uitle

ss,

was

tefu

l and

un

auth

oris

ed

expe

nditu

re

Atte

nd w

orks

hops

co

nduc

ted

by C

FO’s

offic

e

100%

Atte

nded

all

wor

ksho

ps a

rran

ged

Fina

nce

Res

pond

to id

entif

ied

inci

dent

s w

ithin

tim

e-

fram

es d

eter

min

ed b

y C

FO’s

offic

e

Non

e

Ensu

re c

ompl

ianc

e w

ith D

ivis

ion

Of

Rev

enue

Act

(D

OR

A)

Mon

thly

DO

RA

repo

rtsC

ompi

le m

onth

ly re

port

as re

quire

d by

DO

RA

100%

Elec

trific

atio

n Pr

ogra

mm

e Ap

ril re

port

subm

itted

to N

atio

nal

Trea

sury

Mun

icip

aliti

es h

ave

not s

ubm

itted

Nov

embe

r and

Dec

embe

r 20

09 m

onth

ly p

rogr

ess

repo

rts o

n EE

DSM

pro

ject

sPr

omot

e C

orpo

rate

G

over

nanc

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ompl

ianc

e w

ith

PFM

A an

d Tr

easu

ry

Reg

ulat

ions

Impl

emen

t com

plia

nce

fram

ewor

k10

0%

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TRIC

ITY,

NU

CLE

AR

AN

D C

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BR

AN

CH

SER

VIC

E D

ELIV

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IMPR

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sSe

rvic

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icia

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nt S

tand

ard

(200

8’09

)D

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d St

anda

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Prog

ress

as

at 3

1 M

arch

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0

Alle

viat

e po

verty

thro

ugh

incr

ease

d ac

cess

to

Mor

den

Ener

gy C

arrie

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Qua

ntity

15

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olds

700

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and

10 b

ulk

subs

tatio

ns

Qua

ntity

150,

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,800

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ulk

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ouse

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nnec

tions

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9Sc

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con

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35Se

ven

subs

tatio

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ompl

eted

; rem

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ng

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e es

timat

ed c

ompl

etio

n en

d Ap

ril 2

010

with

two

at c

omm

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g st

age

Qua

lity

Audi

ted

Qua

lity

Audi

t

Con

sulta

tion

IDP,

Esk

om, M

unic

ipal

ities

Con

sulta

tion

IDP

proc

ess,

Esk

om,

mun

icip

aliti

es, H

ousi

ng, D

PLG

, D

OE

Appr

oved

pro

ject

s ha

s ID

Ps

Acce

ssE-

mai

l, te

leph

one

Acce

ssE-

mai

l, te

leph

one

Cou

rtesy

Ad h

ocC

ourte

syIm

plem

ent�B

atho�Pele

prog

ram

mes

O

pen

and

trans

pare

ntPr

ovin

cial

wor

ksho

psO

pen

and

trans

pare

ntPr

ovin

cial

wor

ksho

psC

ondu

cted

all

plan

ned

wor

ksho

ps


121

Key

Ser

vice

sSe

rvic

e B

enef

icia

ryC

urre

nt S

tand

ard

(200

8’09

)D

esire

d St

anda

rd (2

009/

10)

Prog

ress

as

at 3

1 M

arch

201

0

Info

rmat

ion

Ad h

ocIn

form

atio

nW

ebsi

te a

nd w

orks

hops

Red

ress

Ad h

ocR

edre

ssC

lient

feed

back

and

que

ry

esca

latio

n pr

oces

ses

Res

pond

ed to

all

quer

ies

and

subm

itted

fe

edba

ck to

Min

istry

Va

lue

for

mon

eyU

nspe

nt m

unic

ipal

fund

sVa

lue

for m

oney

Allo

cate

d bu

dget

spe

nt in

line

with

pr

iorit

ies

Spen

t 63%

vs

desi

red

+90%

of t

otal

fund

s;

proj

ects

mon

itore

d re

gula

rly to

ens

ure

valu

e fo

r mon

ey is

ach

ieve

dTi

me

End

Mar

ch 2

009

Tim

eEn

d M

arch

201

0D

esire

d st

anda

rd u

nach

ieva

ble

at th

is

stag

e du

e to

late

sta

rt of

mun

icip

al

proj

ects

Cos

tU

nspe

nt m

unic

ipal

fund

sC

ost

Budg

eted

Due

to p

roje

cts

bein

g la

te, f

unds

can

not

be e

xpen

ded

as p

er d

esire

d st

anda

rd.

Faci

litat

e pr

ivat

e se

ctor

pa

rtici

patio

n in

th

e el

ectri

city

se

ctor

Sout

h Af

rican

pu

blic

and

in

dust

ry p

laye

rs

Qua

ntity

100

MW

Qua

ntity

1100

MW

Qua

lit:

Peak

ing

pow

erQ

ualit

yPe

akin

g po

wer

Con

sulta

tion

Esko

m, N

ERSA

Con

sulta

tion

Esko

m, N

ERSA

Acce

ssEm

ail,

tele

phon

e, m

eetin

gAc

cess

Emai

l, te

leph

one,

mee

ting

Cou

rtesy

Ad h

ocC

ourte

syIm

plem

ent B

atho�Pele

prog

ram

mes

Ope

n an

d tra

nspa

rent

Mee

tings

, Gov

ernm

ent G

azet

teO

pen

and

trans

pare

ntM

eetin

gs

Info

rmat

ion

Ad h

ocIn

form

atio

nW

ebsi

te a

nd w

orks

hops

Red

ress

Ad h

ocR

edre

ssC

lient

feed

back

and

que

ry

esca

latio

n pr

oces

ses

Addr

esse

d al

l que

ries

and

subm

itted

fe

edba

ck to

Min

istry

Valu

e fo

r mon

eyAd

hoc

Valu

e fo

r mon

eyBu

dget

spe

nt in

line

with

prio

ritie

s as

allo

cate

dSp

ent 6

3% v

s de

sire

d +9

0% o

f tot

al fu

nds;

pr

ojec

ts m

onito

red

regu

larly

to e

nsur

e va

lue

for m

oney

is a

chie

ved

Tim

eEn

d Ju

ne 2

009

Tim

eEn

d M

arch

201

0D

esire

d st

anda

rd u

nach

ieva

ble

at th

is

stag

e du

e to

late

sta

rt of

mun

icip

al

proj

ects

Cos

tBu

dget

Cos

tBu

dget

Due

to p

roje

cts

bein

g la

te, f

unds

can

not

be e

xpen

ded

as p

er d

esire

d st

anda

rd.

PROGRAMME 6

122

Key

Ser

vice

sSe

rvic

e B

enef

icia

ryC

urre

nt S

tand

ard

(200

8’09

)D

esire

d St

anda

rd (2

009/

10)

Prog

ress

as

at 3

1 M

arch

201

0

Prov

idin

g fu

ndin

g th

roug

h R

enew

able

En

ergy

Fin

ance

an

d Su

bsid

y O

ffice

(REF

SO)

to e

ntre

pren

eurs

an

d BE

Es

Entre

pren

eurs

ap

plyi

ng fo

r fu

ndin

g to

de

velo

p an

d im

plem

ent

rene

wab

le

ener

gy p

roje

cts

Qua

ntity

Th

ree

subs

idis

ed p

roje

cts

Qua

ntity

Five

sub

sidi

sed

proj

ects

One

pro

ject

Qua

lity

Com

mer

cial

ly v

iabl

e re

new

able

en

ergy

pro

ject

sQ

ualit

yC

omm

erci

ally

via

ble

rene

wab

le

ener

gy p

roje

cts

Con

sulta

tion

•Pr

ess

rele

ase

•W

ebsi

te•

Wor

ksho

ps a

cros

s th

e co

untry

Con

sulta

tion

•In

tens

ify a

war

enes

s ca

mpa

ign

•R

enew

able

ene

rgy

inve

stor

co

nfer

ence

Sola

r Wat

er H

eatin

g co

nfer

ence

Acce

ssTh

roug

h of

ficia

ls a

t the

Hea

d O

ffice

Acce

ssIn

volv

e m

unic

ipal

ities

and

wor

k w

ith D

ME

colle

ague

s in

the

regi

onEn

gagi

ng m

unic

ipal

ities

Cou

rtesy

•M

eetin

gs•

Tele

phon

ical

ly•

Wor

ksho

ps a

nd c

onfe

renc

es

Cou

rtesy

•M

eetin

gs•

Tele

phon

ical

ly•

Wor

ksho

ps a

nd c

onfe

renc

es

Hos

ted

CSP

wor

ksho

p; o

ngoi

ng

inte

ract

ion

with

sta

keho

lder

s; e

ngag

e th

em te

leph

onic

ally

Ope

n an

d tra

nspa

rent

Cle

ar a

pplic

atio

n pr

oced

ure

and

appe

al p

roce

ss fo

r agg

rieve

d ap

plic

ants

Ope

n an

d tra

nspa

rent

Cle

ar a

pplic

atio

n pr

oced

ure

and

appe

al p

roce

ss fo

r agg

rieve

d ap

plic

ants

.

Cle

ar a

pplic

atio

n ha

s be

en d

evel

oped

&

post

ed o

n th

e w

ebsi

te

Info

rmat

ion

Proj

ect i

nfor

mat

ion

diss

emin

atio

n he

lp d

esk

Info

rmat

ion

Proj

ect i

nfor

mat

ion

diss

emin

atio

n he

lp d

esk

Hel

p de

sk is

bei

ng e

stab

lishe

d th

roug

h R

EMT

Red

ress

Ad h

ocR

edre

ssC

lient

feed

back

and

que

ry

esca

latio

n pr

oces

ses

Valu

e fo

r mon

eyC

ontri

butio

n of

tota

l sub

sidi

sed

proj

ect i

s 12

4 G

Wh

Valu

e fo

r mon

eyAd

ditio

nal 3

00 G

Wh

per a

nnum

sh

ould

be

adde

d to

ene

rgy

mix

th

roug

h R

EFSO

sup

port

Tim

eM

arch

200

9Ti

me

Mar

ch 2

011

Cos

tR

5 m

illion

Cos

tR1

0 m

illion

50%

has

bee

n di

sbur

sed

Reg

ulat

ory

fram

ewor

k fo

r la

rge

scal

e im

plem

enta

tion

and

mon

itorin

g of

en

ergy

effi

cien

cy

The

Sout

h Af

rican

pub

lic

and

indu

stry

Qua

ntity

Nat

iona

l Ene

rgy

Effic

ienc

y St

rate

gy o

f 200

5 re

view

ed 2

008

Stan

dard

for S

et T

op B

oxes

or

Dec

oder

s

EE re

gula

tions

und

er th

e En

ergy

Ac

t

Qua

ntity

Nat

iona

l Ene

rgy

Effic

ienc

y Po

licy

docu

men

t rev

iew

ed fo

r 200

8 an

d ap

prov

ed b

y C

abin

et fo

r pub

lic

com

men

t with

dis

aggr

egat

ed

targ

ets

for i

ndus

try

Nat

iona

l Ene

rgy

Effic

ienc

y St

rate

gy

publ

ishe

d fo

r pub

lic c

omm

ents

(clo

sing

da

te w

as 1

0 Ju

ly 2

009)

How

ever

DG

ad

vise

d to

del

ay p

roce

ss a

nd fo

cus

on

deve

lopm

ent o

f EE

targ

ets

mon

itorin

g sy

stem

Stan

dard

for S

et T

op B

oxes

com

plet

ed

and

publ

ishe

d by

SAB

S

Dra

ft re

gula

tions

bei

ng p

repa

red

in

cons

ulta

tion

with

DTI

and

will

be c

ircul

ated

to

Bra

nche

s


123

Key

Ser

vice

sSe

rvic

e B

enef

icia

ryC

urre

nt S

tand

ard

(200

8’09

)D

esire

d St

anda

rd (2

009/

10)

Prog

ress

as

at 3

1 M

arch

201

0

Qua

lity

Wel

l-dra

fted

docu

men

t with

act

ion

plan

s fo

r the

nex

t thr

ee y

ear c

ycle

Qua

lity

A w

ell-d

rafte

d do

cum

ent w

ith

actio

n pl

ans

until

201

5 an

d st

rate

gic

dire

ctio

n un

til 2

050

DD

G a

dvis

ed d

elay

of s

trate

gy re

view

pr

oces

s an

d ne

ed fo

r foc

us o

n de

velo

ping

m

onito

ring

syst

em fo

r ene

rgy

effic

ienc

y ta

rget

sC

onsu

ltatio

n26

-27

Oct

ober

200

8 w

orks

hops

w

ith a

ll st

akeh

olde

rsC

onsu

ltatio

nC

ontin

ued

cons

ulta

tion

and

esta

blis

hmen

t of

inte

rgov

ernm

enta

l wor

king

gr

oup

to e

nsur

e im

plem

enta

tion

and

coor

dina

tion

at d

iffer

ent

gove

rnm

ent d

epar

tmen

t lev

els

A fo

rum

and

/or b

ody

com

pris

ing

all s

ecto

r pla

yers

to re

view

all

equi

pmen

t sta

ndar

ds

Slow

pro

gres

s w

ith p

roce

ss o

f est

ablis

hing

SA

NED

I

The

Ener

gy E

ffici

ency

Sta

ndar

d Ad

viso

ry

Com

mitt

ee e

stab

lishe

d at

SAB

S to

pr

ovid

e st

rate

gic

dire

ctio

n; n

umbe

r of

mee

tings

hav

e ta

ken

plac

e

Acce

ssAv

aila

ble

on D

ME

web

site

Acce

ssM

akin

g a

mec

hani

sm a

vaila

ble

for i

ndiv

idua

ls, c

ompa

nies

, bu

ildin

g ow

ners

to d

eter

min

e ca

rbon

foot

prin

t bas

ed o

n en

ergy

co

nsum

ptio

n an

d m

easu

red

to

impl

emen

t ene

rgy

effic

ienc

y

Avai

labl

e; li

nk b

etw

een

DM

E an

d ca

rbon

fo

otpr

int w

ebsi

tes

to b

e cr

eate

d

Cou

rtesy

Cur

rent

ly v

olun

tary

to e

nsur

e re

adin

ess

to im

plem

ent b

efor

e m

akin

g it

man

dato

ry

Cou

rtesy

Ret

ain

volu

ntar

y st

atus

but

co

mm

enci

ng w

ith re

gula

tions

w

here

the

volu

ntar

y ap

proa

ch

is n

ot fu

nctio

ning

; inc

entiv

es

anno

unce

d fo

r im

plem

enta

tion

as

soon

as

poss

ible

Dis

cuss

ions

are

und

erw

ay w

ith N

BI to

st

art t

he p

roce

ss o

f sig

ning

new

acc

ords

w

ith th

e M

inis

ter.

A m

eetin

g be

twee

n N

BI

repr

esen

tativ

es a

nd th

e M

inis

ter t

ook

plac

e to

dis

cuss

way

forw

ard

Ope

n an

d tra

nspa

rent

Stra

tegy

pre

sent

ed a

t wor

ksho

ps,

exhi

bitio

ns a

nd c

onfe

renc

esO

pen

and

trans

pare

ntC

ontin

ued

disc

ussi

ons

and

pres

enta

tions

at l

ocal

, nat

iona

l an

d in

tern

atio

nal f

ora

Pres

enta

tions

at w

orks

hops

and

co

nfer

ence

s to

pro

mot

e im

plem

enta

tion

of

EE p

roje

cts

Info

rmat

ion

Doc

umen

t con

tain

s al

l rel

evan

t in

form

atio

n fo

r im

plem

enta

tion

Info

rmat

ion

Prov

idin

g m

ore

info

rmat

ion

for

each

sec

tor i

ncl s

tand

ards

, cod

es

of p

ract

ice,

impl

emen

tatio

n gu

idel

ines

and

che

cklis

ts to

en

sure

larg

e sc

ale

ener

gy

effic

ienc

y im

plem

enta

tion

DD

G a

dvis

ed d

elay

of s

trate

gy re

view

pr

oces

s an

d ne

ed fo

r foc

us o

n de

velo

ping

m

onito

ring

syst

em fo

r ene

rgy

effic

ienc

y ta

rget

s

PROGRAMME 6

124

Key

Ser

vice

sSe

rvic

e B

enef

icia

ryC

urre

nt S

tand

ard

(200

8’09

)D

esire

d St

anda

rd (2

009/

10)

Prog

ress

as

at 3

1 M

arch

201

0

Red

ress

The

stra

tegy

enc

oura

ges

the

esta

blis

hmen

t of S

MM

Es to

un

derta

ke e

nerg

y ef

ficie

ncy

proj

ects

and

the

crea

tion

of jo

bs.

Red

ress

Assi

st S

MM

Es w

ith lo

w in

tere

st

loan

s an

d ot

her i

ncen

tives

and

tra

in m

ore

oper

ator

s on

equ

ipm

ent

at d

iffer

ent l

evel

s by

ens

urin

g un

it st

anda

rds

Dis

cuss

ions

und

erw

ay w

ith N

atio

nal

Trea

sury

and

DTI

on

the

tax

ince

ntiv

es;

DO

E to

dev

elop

EE

regu

latio

ns fo

r im

plem

enta

tion

of in

cent

ives

by

Trea

sury

Valu

e fo

r mon

eyEn

ergy

effi

cien

cy b

y its

nat

ure

prov

ides

val

ue fo

r mon

ey, s

aves

th

e en

viro

nmen

t, sp

urs

the

econ

omy

and

will

ensu

re s

ocia

l de

velo

pmen

t

Valu

e fo

r m

oney

Payb

ack

perio

ds w

ill de

crea

se

as th

e pr

ice

of e

nerg

y in

crea

ses;

m

ore

proj

ects

will

beco

me

finan

cial

ly v

iabl

e w

hich

will

have

a

posi

tive

impa

ct o

n th

e ec

onom

y of

th

e co

untry

Ong

oing

Tim

eTh

e st

rate

gy h

as m

ediu

m-te

rm

targ

et o

f 201

5 lo

ng-te

rm ta

rget

of

2050

Tim

eEn

ergy

effi

cien

cy im

prov

emen

ts in

th

e co

untry

will

have

to c

ontin

ue

and

be a

ccel

erat

ed to

add

ress

gl

obal

war

min

g an

d cl

imat

e ch

ange

up

to 2

050

Proj

ects

und

erw

ay in

indu

stria

l sec

tor

and

enga

gem

ents

with

indu

stry

par

tner

s on

goin

g at

NBI

EE

Tech

nica

l Com

mitt

ee

mee

tings

Appo

intm

ent o

f key

peo

ple

bein

g co

mpl

eted

by

UN

IDO

to im

plem

ent

indu

stria

l ene

rgy

effic

ienc

y pr

ogra

mm

e;

proj

ect s

teer

ing

com

mitt

ee c

o-ch

aire

d by

D

OE

and

DTI

est

ablis

hed

as p

er s

igne

d pr

ojec

t doc

umen

t C

ost

The

mon

itorin

g of

the

targ

ets

mus

t be

don

e; a

ssoc

iate

d co

st R

8 m

illion

ove

r thr

ee y

ears

Larg

e sc

ale

impl

emen

tatio

n of

pr

ojec

ts a

mou

nt to

R1.

55 b

illion

ov

er n

ext t

hree

yea

rs

Cos

tM

onito

ring

will

have

to

cont

inue

unt

il 20

50 b

ut c

osts

w

ill si

gnifi

cant

ly re

duce

on

ce m

odel

ling

mec

hani

sm

impl

emen

ted;

then

onl

y co

st o

f da

ta g

athe

ring

and

pers

onne

l to

anal

yse

data

Con

tinue

d fu

ndin

g of

pro

ject

s re

quire

d to

cre

ate

ince

ntiv

es fo

r im

plem

enta

tion

Dis

cuss

ions

und

erw

ay w

ith S

wis

s D

evel

opm

ent C

orpo

ratio

n to

fina

lise

fund

ing

cont

ract

and

ToR

; dra

ft su

bmitt

ed

to L

egal

Ser

vice

s fo

r con

side

ratio

n

R114

milli

on tr

ansf

erre

d to

mun

icip

aliti

es

to d

ate

to a

ssis

t with

impl

emen

tatio

n of

EE

DSM

pro

gram

me


125

PROGRAMME 7: ASSOCIATED SERVICES

Purpose: To provide services in support of the Department’s mandate through funded and non-funded statutory bodies and organizations.

Measurable Objectives: Enhance the Department’s objectives through policies and directives, promoting its legislative mandate and leading to the creation of an environment conducive to sustainable development, investment and the improvement of the quality of life of all South Africans.

(Detailed performance reports are on the individual entities’ annual reports)

1. THE MINE HEALTH AND SAFETY COUNCIL (MHSC)

The Mine Health and Safety Council (MHSC) is a public entity that is mandated, in terms of the MHSA, to advise the Minister of Minerals and Energy on OHS research programmes, and the development of regulations, standards, occupational health and safety policies, procedures and databases focused on minimising the occupational health and safety risk at South African mines.

OHS Performance in the South African Mining Industry

When comparing the safety performance between January to December of 2008 to that of 2009, there has been a marginal reduction from 171 fatalities to 167 fatalities. The provisional fatality rate for 2009 is 0.15 per million hours worked and 0.33 per thousand persons at work. This represents a slight reduction in the fatality rate of 0.16 per million hours worked and 0.35 per thousand persons at work (171 fatalities) for the same period in 2008. From the milestones that were set in 2003, the South African Mining Sector has to improve a minimum of 20% per annum to reach the target. Occupational health impacts remain difficult to quantify since many health effects are not immediately observable. Occupational lung diseases remain a major cause of premature retirement and death at South African mines. Silicosis and noise induce hearing loss continue to plague the industry. The under-reporting on the exposures underestimates the real exposure levels. The reporting of dust and noise exposure data for the previous year is not representative given that only 18% of the operating mines submitted the annual reports. There is a need for mandatory reporting on health indicators in order for the milestones to be achieved.The research needs analysis highlighted the major challenges in accessing health data in order to determine the extent of the problem and hence develop appropriate interventions. The focus for the next financial year will be on improving the collection of health data, in-stope measurement of dust exposure, raising awareness among employees on the hazards of thermal stress and optimising the silicosis tool so that it can be made available to all commodities and technologies for real-time monitoring of noise exposure.

MHSC Research Highlights for the 2009/10 year

In the year of 2009, the following highlights were selected to demonstrate successful transfer of research outcomes.In June 2009, a project focussed on a Hazard Identification Risk Assessment for trackless system was completed. The outcomes of this project provide the user with a template to evaluate the risks associated with trackless mobile equipment. When presented to the SIMRAC members, it was perceived that the research outcomes would prove to be invaluable to reduce the number of injuries, incidents and fatalities associated with trackless mobile equipment. Further to this the research from the programme that focuses on eliminating the risk of rockfalls has provided some insightful, even though provisional, results on the systems that would provide miners with a method of early detection of impending instability. Further work is ongoing to verify these results. In an effort to improve the health of workers and increase the awareness of the dangers of silicosis, an awareness campaign was undertaken. As an outcome of the silicosis elimination programme, a silicosis comic was developed to educate workers about silicosis. Taking into account the high levels of illiteracy within the sector, it was determined that alternatives method should be sought to communicate this message to the workforce. The provinces of Gauteng, North West, Mpumalanga and Free State were chosen for the roll out of the programme. The awareness campaign took place from the 4th to the 27th of November 2009 with the first show held at AngloGold Ashanti’s Moab Khotsong gold mine on the 4th of November 2009. Feedback received from mine employees and mine management highlighted the fact that the roadshow had met the desired intent and impact. The response was very encouraging and the MHSC was commended on the efforts in bringing this message to the respective mines. Further to this, the MHSC has streamlined the research process to firstly ensure that

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the research programmes are focussed and directed towards the identified needs based on the health and safety performance and taking into account previous research work and current national and international initiatives to improve OHS. This reviewed process uses technical experts to assist in the reviewing of research progress to guide both the research provider as well as the MHSC in order to achieve optimal outcomes that will have meaningful impact.

Summit Action Plan and Presidential Audit Outcomes

In addition to the research initiatives, the Summit Action Plan and the outcomes of the Presidential Audit remained a key focus area for the MHSC. The Summit action plan incorporates three key themes:

• Health and Safety Culture, • Learning Industry and • Healthy and Safe Workplaces.

The Presidential audit recommendations were incorporated into these themes. Each of the themes had a set identifiable actions and outcomes and these are listed below. For the year 2009/10, efforts were focussed on development of strategies towards the various themes.

One of the major initiatives proposed by the stakeholders in 2008 is the development of a culture transformation framework. The Changing�Minds,�Changing�Mines Project, builds on a survey that indicated that OHS culture in the industry was significantly more negative than international comparisons. The development of the framework was initiated in the 2009/10 financial year and will be complete by August 2010.

2. MINTEK

Mintek, South Africa’s national organisation for research, development and beneficiation of minerals, was established in terms of the Mineral Technology Act, No 30 1989. Mintek strives, through innovative research and development, to be a global leader in the field of mineral and metallurgical research and development and technology transfer.

A serious shortfall in Mintek’s finances, compared to 2008/9, was experienced this year as a result of the impact of the economic slump that engulfed the mining industry. Commercial demand continued but for smaller, bench-scale service work rather than the more lucrative large pilot plants. The majority of our clients remain very price-sensitive and are still reluctant to proceed with expensive pilot plants, which will remain a challenge for us next year. However, we will continue with our cost savings efforts where possible including only filling critical posts and increasing efficiencies.

On the technical front; the ConRoast demonstration furnace, after six years of research, treated 50,000 tons of material signifying the reliability of Mintek’s smelting technology. This also signified the end of the demonstration phase. As a result, Mintek and Braemore Platinum, a wholly owned subsidiary of Jubilee Plc, signed a letter of intent allowing Mintek to fully commercialise the furnace at Mintek. In the Research and Development arena, programmes on gold, platinum and fuel cell catalyst continued with no major setbacks and the Department of Science and Technology (DST) ‘Advanced Metals Development Initiatives’ precious metals catalyst programme advanced well with an in-depth market evaluation of commercial precious metal catalysts.

On the second economy interventions, a number of projects were identified e.g. the manufacturing of bricks/blocks for building, the approval of a Pottery project with the PPC Construction Industry Associations Trust involving the set-up of a pottery manufacturing unit and training of women in pottery/ceramic production in Ndwedwe in KZN, more work on a phosphogypsum dump in Phalaborwa as well as the setting-up of a glass bead manufacturing unit in Mdantsane, in the Eastern Cape. SMME’s were also encouraged to play a prominent role in the rehabilitation of ownerless and derelict asbestos mines in the Department of Mineral Resources’ programme managed by Mintek. To this end, a tour of the affected areas was undertaken with DMR officials late in the year where substantial progress in the rehabilitation of those areas was observed.


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On employee relations, the National Union of Mineworkers (NUM) was officially recognised as a majority union at Mintek in August and subsequently, for the first time in the 75 year history of Mintek, successful negotiations on change of conditions of service for Mintek employees were held in the bargaining chamber.

Following concerns on high staff turnover, we were able to reach our target from 25% in the last 2 years to 7.3%. However, of major concern now is the poor performance of Mintek undergraduate bursars for the 2009 academic year due to a high failure rate of 33%. Although this problem is not unique to Mintek, the selection process was nevertheless reviewed in order to cater for possible future gaps as this impacts on availability of more skills.

Mintek successfully underwent its first integrated certification audit of our Quality, Environmental and Safety Management Systems and was re-certified to the international ISO 9001, 14001, and 18001 standards. Analytical Services Division was re-accredited against the ISO 17025 standard for Testing and Calibration laboratories. This is an important milestone as in itself it advertises the type of standards Mintek upholds in the areas of our competencies.

3. ELECTRICITY DISTRIBUTION INDUSTRY HOLDINGS (EDIH)

HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2010

The Department of Minerals and Energy (DME) and EDI Holdings, working with the other stakeholders have made significant progress during the year under review in preparing the municipal electricity business and ESKOM distribution business, to join the envisaged Regional Electricity Distributors (REDs). Despite the constraint of the lack of an enabling legislative environment, 147 of the 187 municipalities that distribute electricity as well as SALGA have signed the Accession & Cooperation Agreements with EDI Holdings thereby committing to the EDI restructuring process. During the year under review, 33 municipal electricity businesses and ESKOM distribution business have been ring fenced.

Extensive ground work and strong promotion of the need for a holistic funding approach for the electricity distribution asset maintenance, refurbishment and strengthening backlog (ADAM) assisted in getting some of the key players to focus on finding solutions to the asset management challenges at hand. This was driven by amongst others, the comprehensive analysis by EDI Holdings revealing that asset management in the distribution industry is not at the level that it should be complementing the NERSA reports that distribution assets are deteriorating due to lack of maintenance and skills shortages. DME, working together with EDI Holdings, managed to have the proposed Constitution 17th Amendment Bill published for public comments and introduced in Parliament in August 2009. The proposed amendment would enable the national government to pass legislation in terms whereof the national government would have powers to further regulate the exercise of executive authority by municipalities relating to the provision of electricity to their communities, amongst other things.Following the agreement between DME and EDI Holdings on the Strategic Implementation Plan (the SIP), which is the roadmap outlining the path from the current scenario to the future we envision, Cabinet would consider and approve the SIP during the 2010/11 financial year whereafter implementation would start in earnest.

4. THE COUNCIL FOR GEOSCIENCE (CGS)

Highlights

The CGS was tasked by the DME to identify all known abandoned, unsafe, mine openings occurring in the Gauteng, Limpopo and North West Provinces and to seal the most dangerous of these shafts. A total of 900 unsafe, abandoned mine-related openings have been located in the Gauteng, Limpopo and North West Provinces, of which 700 are located in Gauteng. A total of 108 extremely dangerous openings, in and around Johannesburg, have been sealed. A proposal to rehabilitate another 145 mine openings in the three above-mentioned provinces over the next three years has been submitted to the DME as a continuation of this project.

The CGS is involved in two projects which have allowed the installation of 12 seismograph stations within the Johannesburg area under the DME-sponsored Strategic Water Management Project. The preparation for the installation of another 10 stations in the Carletonvllle area, in

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collaboration with the Japanese government, to monitor earth tremours within the gold-mining and abandoned mine areas is underway, this will assist in understanding, and thus mitigating, the impact of seismic events occurring in these areas.

The contract to undertake the assessment of the CO2 storage potential of South Africa in all onshore and offshore basins that was signed towards

the end of 2008 is progressing as scheduled. The CO2 storage report will be published in two forms: (1) a glossy document intended for a broad

public readership, and (2) a technical report for a scientific/technical readership. These publications should be available by mid 2010.

Geophysical investigations have been carried out around Mafikeng in the North West Province in order to assess the groundwater potential using an integrated exploration approach that involves geophysical and hydrogeological studies. Airborne magnetic data in conjunction with frequency and time-domain electromagnetic methods were used. Six potential targets were identified based on interpretation of the integrated geophysical data sets.

The collection of high-density airborne geophysical data over regions in South Africa is vital for the promotion of the mining industry, especially for small-scale operators who cannot afford exploration on the scale that is done by the mining houses. Airborne flying of geophysical data focused on the northern and eastern sections of the Bushveld Igneous Complex – where previously there was a lack of high-resolution data. This data is currently being interpreted.

The year saw the further consolidation of the CGS Field School as a year-long programme during which the full-time participants are guided and mentored continuously. The programme is structured into four modules lasting three months each, and covering various primary topics, with secondary themes. This year these focused on structural and metamorphic aspects with some basement geology.

Over a period of several years a number of threats have been identified to the quality and supply of groundwater to the Cradle of Humankind World Heritage Site. These include the impact of acid mine drainage, poorly managed sewage, agriculture and the over-abstraction of groundwater. The project, which is funded by BlueIQ and undertaken in collaboration with the CSIR and the University of the Witwatersrand, aims to develop a management framework for groundwater within the area by determining the current status and assessing the various threats. Sampling activities have been undertaken to collect pristine dolomite samples to represent uncontaminated aquifer material. These have been investigated petrologically. A laboratory simulation is underway to investigate the impact of acid mine drainage on dolomite.

The critical challenges that the CGS has to manage on a virtually continuous basis to achieve success are:

• Appropriate financial backing • Adequate and competent scientists• Improving and maintaining high staff morale• The transfer of knowledge, skills and expertise to young scientists• An integrated approach to service delivery• The retention of experienced scientists • A workable balance between statutory and commercial work• A structure that supports its strategy• Developing and implementing a strategic brand within the national priorities framework.

5. NATIONAL NUCLEAR REGULATOR (NNR)

The NNR is established and governed in terms of the National Nuclear Regulator Act, Act 47 of 1999 which came into effect on 20 February 2000. The National Nuclear Regulator (NNR) is responsible for exercising regulatory control over the safety of nuclear installations, certain types of radioactive waste, irradiated nuclear fuel, and the mining & processing of radioactive ores & minerals.

The primary function of the National Nuclear Regulator (NNR) is to provide for the protection of persons (workers & members of public), environment and property from the harmful effects arising from ionising radiation produced by radioactive materials.


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NNR ACTIVITIES AND HIGHLIGHTS

During the financial year 2009/10 the NNR made significant top leadership changes by appointing three new executives, namely the Chief Executive Officer, Chief Technical Officer and Strategy and Stakeholder Relations Executive. All executives and senior managers of the organizations have signed performance contracts. In addition a new Chairperson of the Board was appointed in the last quarter of the financial year.

All nuclear facilities in the country were inspected and found to be compliant with all the required safety standards, as stipulated in the NNR’s conditions of license. There were no nuclear accidents or incidents reported in South Africa during 2009/10.

The facilities and actions regulated by the NNR cover a diverse range of activities, including the operation of nuclear power reactors, research reactors, nuclear fuel fabrication, nuclear technology applications and the mining and processing of uranium and other radioactive ores.

The NNR has to exercise regulatory oversight over these facilities, including safety assessments and compliance inspections of authorised facilities, such as the Koeberg Nuclear Power Station, the Necsa nuclear installations and the mining and minerals processing facilities.

There were no significant incidents that took place at these facilities to report on, and the NNR is satisfied that the said facilities largely complied with the NNR safety standards and regulatory practices, and that the protection of the workers, public and the environment was assured.

Although the NNR is generally satisfied with the overall compliance by authorisation holders with NNR requirements, over the past few years the organisation detected a trend of recurrence of non-compliance by some authorisation holders in the mining and minerals processing facilities. The NNR has engaged with these specific cases, in order to implement measures to ensure improved compliance. We are closely monitoring these holders and they have been put on a regular reporting mechanism, however, the level of deviation is not significant so as to shut down the facility.

New Authorizations

Certificates of Registration

During the period under review, the NNR issued 23 COR for nuclear authorisation of mining and minerals processing facilities. NNR has now issued a total of 144 certificates of registrations of mining and mineral facilities.

Application for nuclear vessel license

During the financial year the NNR granted a Nuclear Vessel Licences to the HMS Spectre from the UK.

Authorisations for the Necsa facilities:

The NNR has issued a total of 15 licences out of the 39 required for Necsa. The rest of the licences will be issued during the next financial year.

INTERNATIONAL OBLIGATIONS

IAEA SAFETY COMMITTEES

The NNR fulfilled all its international obligations in the preceding year by attending all Safety Standards Committee Meetings at the IAEA Headquarters in Vienna, these meetings included:

• Nuclear Safety Standard Committee (NUSSC) meetings

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• Radiation Safety Standard Committee (RASSC) meetings• Waste Safety Standard Committee (WASSC) meetings• Transport Safety Standard Committee (TRANSSC) meetings • Commission on Safety Standard (CSS) meetings • The International Nuclear Event Scale (INES) meeting

IAEA INTERNATIONAL CONFERENCE ON EFFECTIVE REGULATORY SYSTEMS

On December 14 - 18 the second “IAEA International Conference on Effective Regulatory Systems” was held in Cape Town, South Africa following the 2006 Moscow conference. The purpose of this conference was to exchange information amongst regulators and strengthened the effectiveness of global nuclear safety and security regime amongst all nuclear regulators, operating organizations and vendors. Such conferences are a vital part of the global effort for senior nuclear safety and security regulators to review issues that are important in the global nuclear regulatory community. The global regulatory system is effective when it ensures that a high level of safety, security and safeguards is maintained by operating organizations; takes appropriate actions to prevent the degradation of safety and security, takes actions to promote safety and security improvements; performs regulatory functions in an independent, transparent, timely and efficient manner and strives for the continuous improvement of itself and the industry.

The Forum of Nuclear Regulatory Bodies in Africa (FNRBA) held a round table at the margins of the conference. Most of the 345 delegates than attended the conference were senior regulators from various countries.

BI-LATERALS

A number of meetings were held under the Bi-lateral agreements the NNR has with Nuclear Regulators in other Countries.

The Forum of Nuclear Regulatory Bodies in Africa (FNRBA) has held a number of meetings during the year and a strategic plan has been developed for future activities. 6. THE SOUTH AFRICAN NUCLEAR ENERGY CORPORATION (NECSA)

During the past year Necsa has focussed on development and performance in its three main functional clusters, i.e. supporting nuclear power in South Africa, radiation science and products, and Necsa as host of nuclear programmes.

The most notable highlights came in the area of radiation science and products. The Necsa subsidiary NTP Radioisotopes (Pty) Ltd achieved excellent results with total sales of R795m which exceeded the NTP group budget by 46%. NTP continued to play a leading role in alleviating the full impact of the global shortage of the critical nuclear medicine isotope molybdenum-99 (Mo-99), which has worsened due to the closure of the HFR reactor in the Netherlands.


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NTP is currently the world’s top producer of isotopes that are used internationally in millions of medical procedures per year, resulting in extremely favourable global exposure for the SA nuclear industry. NTP is currently collaborating with the US Department of Energy on the qualification of NTP’s LEU-based Mo-99 in the USA. NTP is also bidding to supply critical radioisotopes, used in medical diagnostics, to the United States market.

The SAFARI-1 conversion programme has been successfully completed in 2009 and the reactor is now fully converted to utilise low enriched uranium (LEU) fuel. Reliability of the SAFARI-1 remained high due to upgrading of its maintenance programme and operational personnel training.

The Nuclear Energy Policy of 2008 confirms Necsa’s role as the national anchor in nuclear energy research, development and innovation. Thorough feasibility studies were conducted by the Nuclear Fuel Cycle (NFC) group that enabled Necsa to develop strategic options for the establishment of fuel cycle operations. The technical viability of some of these options needs to be further evaluated through fundamental experimental work. In this regard good progress was made in establishing laboratories for this research work, in line with Necsa’s research and development mandate. Good progress was also made with the upgrading of the National Nuclear Manufacturing Centre at Necsa for specialised manufacturing of components for nuclear reactors in support of the government’s localisation objectives for the nuclear new build programme. Very good results were achieved with the acceleration of skills transfer to and training of the next generation of nuclear scientists, engineers and technicians in this programme.

Necsa’s research and development programmes focussed on new opportunities for the SA nuclear and radiation industries and eight new innovations capable of delivering economic value saw the light in 2009/10. Research outputs in the form of patents and peer reviewed publications continued to grow.Necsa’s decommissioning and decontamination programme achieved its targets and was able to fully utilise the dedicated funding allocation for this programme.

The Nuclear Skills Development Centre at Necsa, which was opened in 2008, made excellent progress and was fully utilised during the past year. The Centre has received full accreditation from Chieta to do the final trade testing of apprentices to qualify as artisans.

Good progress was made with the establishment of the first phase of a Nuclear Science Centre/ Visitor Centre at Pelindaba. This centre will be opened to the public during 2010 and will supply information on Necsa and the nuclear industry as part of the programme to improve public understanding of nuclear matters.

Despite the difficult financial and trading environment experienced during the past year, the Necsa group was still able to increase its revenue in real terms during the 2009/10 financial year. 7. NATIONAL ENERGY REGULATOR OF SOUTH AFRICA (NERSA).

NERSA HIGHLIGHTS FOR 2009/10

The National Energy Regulator (NERSA) is a regulatory authority established as a juristic person in terms of Section 3 of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). NERSA’s mandate is to regulate the electricity, piped-gas and petroleum pipelines industries in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and Petroleum Pipelines Act, 2003 (Act No. 60 of 2003). The structure of the Energy Regulator consists of nine members, five of whom are part-time and four are full-time including the Chief Executive Officer (CEO). The Energy Regulator is supported by a secretariat under the direction of the CEO.

NERSA believes that its services add value to the electricity, piped-gas and petroleum pipelines industries in support of government’s economic and social objectives. During the last business planning cycle (2009/10), value has been added in each of the following strategic objectives:1. To implement relevant energy policy efficiently and effectively;2. To implement relevant energy law efficiently and effectively;3. To implement relevant energy regulations efficiently and effectively;4. To identify, develop and implement relevant energy rules efficiently and effectively;

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5. To establish the credibility, legitimacy and sustainability of NERSA as an independent and transparent energy regulator;6. To create an effective organisation that delivers on its mandate and purpose; and7. To evaluate the Energy Regulator’s effectiveness.

HIGHLIGHTS FOR 2009/10:

NERSA completed a number of programmes and projects during 2009/10 in order to meet its objectives. These programmes and projects are grouped in industry specific regulatory; cross-cutting regulatory; and governance and other. The highlights for 2009/10 include:

Electricity Industry Regulation:• The Energy Regulator approved a 31.3% interim tariff increase for Eskom for 2009/10 on 25 June 2009;• The Energy Regulator approved one hundred and twenty five (125) municipal tariff applications for 2009/10;• The Energy Regulator approved the 2009/10 Free Basic Electricity Tariff in August 2009; • On 29 October 2009, the Energy Regulator approved the second phase of the Renewable Energy Feed-In Tariff (REFIT). The decision

of the Energy Regulator is the following: - Concentrated Solar Power (CSP) trough without storage – R3.14 / kWh; - Large scale grid connected PV systems (≥ 1 MW) – R3.94 / kWh; - Biomass solid – R1.18 / kWh; - Biogas – R0.96 / kWh; and - CSP Tower with storage of 6 hrs per day – R2.31 / kWh.• On 9 December 2009, the Energy Regulator approved the principles to be used in determining the electricity tariff guideline increase for electricity

distributors;• The Energy Regulator approved on 24 February 2010 the Eskom tariff increase for the period 210/11 – 2012/13 as follows: - 24.8% increase in 2010/11; - 25.8% increase in 2011/12; and - 25.9% increase in 2012/13. • On 24 February 2010, the Energy Regulator approved the municipal tariff guideline1 as well as the electricity tariff level benchmarks for

the three years control period 2010/11 - 2012/13;• On 12 March 2010, the Energy Regulator approved Eskom’s schedule of retail tariffs for implementation on 1 April 2010;• On 24 February 2010, the Energy Regulator approved the Inclining Block Rates tariffs (IBTs) structure for implementation by Eskom and

municipalities concurrently with the 2010/11 price increase in order to provide for cross-subsidies for low income domestic customers, as required by the Electricity Pricing Policy (EPP);

• A consultation paper on the rules for the selection criteria of REFIT projects was finalised and published. A public hearing in this regard was held on 30 and 31 March 2010; and

Piped-Gas Industry Regulation:• The Energy Regulator approved the piped-gas Tariff Guidelines on 30 April 2009;• The Energy Regulator approved the European Benchmark Price (EBP) and Sasol Volume Weighted Average Gas Price (SWVAGP) on 9

September 2009;• The Energy Regulator approved the ROMPCO tariff on 9 September 2009;• The Energy Regulator granted twelve (12) construction licences to Sasol Gas.• The Energy Regulator amended six (6) licence granted to Sasol Gas Ltd to extend the construction period as the licensee failed

to complete the construction activities within the period provided for in the original licence conditions, due to delays in obtaining environmental authorizations for the projects.

• The Energy Regulator granted a first licence to trade in compressed natural gas (CNG) to Novo Energy (Pty) Ltd in six areas on 8 December 2009.

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receipt�of�the�final�Eskom�retail�tariffs


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• The Energy Regulator granted a licence to Transnet Ltd trading as Transnet Pipelines for the operation of the Secunda to Durban gas transmission facility commonly referred to as the “Lilly Pipeline” on 11 November 2009;

• The Energy Regulator decided on 12 October 2009 not to issue licences to Gigajoule Africa Pipe (Cape) (Pty) Ltd for the construction of gas transmission and distribution facilities; and to Gigajoule Africa Gas (Cape) (Pty) Ltd for trading in gas in the Cape West Coast Region of the Western Cape Province; and

• The Energy Regulator denied a licence application by Unigas Import and Export for the construction of gas facilities in the Eastern Cape, Western Cape and KwaZulu-Natal provinces.

Petroleum Pipelines Industry Regulation:• Approval of the Transnet tariffs for 2009/10 by the Energy Regulator on 30 April 2009;• The Energy Regulator approved the Transnet Tarlton Storage tariffs on 4 December 2009;• The Energy Regulator approved the 3rd and 4th Amendments of the tariff Methodology for the Petroleum Pipelines Industry on 23

September and 26 November 2009 respectively;• The Energy Regulator approved the Storage and Loading Facilities Tariff Methodology on 25 March 2010 • On 25 March 2010, the Energy Regulator approved an allowable increase of 11.86% (6.87% tariff increase) for Transnet Limited’s

petroleum pipelines application for 2010/11 as well as the Reasons for Decision;• On 25 March 2010, the Energy Regulator approved the Transnet starting regulatory asset base (SRAB) for its petroleum pipelines and

Tarlton storage facility assets;• The Energy Regulator granted seventeen (17) licences for the operation of existing petroleum pipelines facilities;• The Energy Regulator granted three (3) licences for the construction of petroleum pipelines facilities;• The Energy Regulator decided not to approve the following licence applications: - Total SA, who applied for the operation of pipeline connecting Cape Town harbour and the Paarden Eiland storage facility. This

was due to the fact that the pipeline is not operational after earlier decommissioning due to a lack of structural integrity; and - BP Southern Africa to operate two marine loading facilities located at Hout Bay harbour and V&A Waterfront in the Western Cape.

This was due to the fact that these are actually resellers retailing fuel to small boats and do not require licensing.

Cross-cutting regulation:• The Energy Regulator approved the Stage 2: Performance Evaluation using the NERSA Benchmarking Better Regulation Framework

Report at its meeting of 23 September 2009; • The Energy Regulator approved the Report: Benchmarking the National Energy Regulator of South Africa against international good

practice — Stage 3: Improvement opportunities and implementation plan, at its meeting on 28 November 2009; • As part of the implementation of the Regulatory Reporting Manuals, the following has been approved by the Regulator Executive

Committee as delegated by the Energy Regulator: - Eskom’s Regulatory Reporting Manual Implementation Plan; - Sasol Gas and Rompco Regulatory Reporting Manual Implementation Plans; - Chevron’s Regulatory Reporting Manual Implementation Plan; - Nelson Mandela Bay Municipality’s Implementation Plan; - Transnet Pipelines Regulatory Reporting Manual Implementation Plan; - Engen Regulatory Reporting Manual Implementation Plan; - Transnet Pipelines Regulatory Reporting Manual Cost Allocation Manual; and - ROMPCO’s Regulatory Reporting Manual Cost Allocation Manual.• The electricity component of the Licensee Information System (LIS) was finalised with the adding of an on-line help function and were

rolled out to licensees.

Governance and Other:• NERSA received an unqualified Audit Report for 2008/09; • The proposed levies to be imposed on the piped-gas and petroleum pipelines industries were gazetted on 27 November 2009. No

representation was received from stakeholders;• Approval of the Delegation Matrix for Regulatory Subcommittees by the Energy Regulator;• Approval of the revised Code of Conduct by the Energy Regulator;

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• NERSA was appointed as Chairperson of the Regional Electricity Regulatory Authority (RERA) for 2010 and 2011;• Attendance of the SADC Energy Officials and Ministers’ Meeting by two NERSA staff members; • NERSA was invited to attend the Roundtable of Energy Regulators in Rome during June, which was one of the preparatory meetings for

the G8 Summit, which will take place in Italy during July 2009; • The Board of the newly established Swaziland Energy Regulator visited NERSA on 7 and 8 December 2009;• Attachment of two officials from EWURA, Tanzania;• Finalisation on the agreed NORAD programmes;

Delays and Backlogs:

NERSA however also experienced a number of delays and backlogs during 2009/10.

• Delay in the finalization of the Renewable Energy Feed-In Tariff Power Purchase Agreement due to the promulgation of the Regulations on New Generation Capacity by the Minister of Energy on 15 August 2009 as well as the extensive stakeholder engagement followed;

• Delays in the receipt of requested information from licencees, including comments on audit reports, resulting in some projects being delayed;

• Although the licensing of all the existing petroleum facilities applied for progressed to the final stage of the approval process, all the applications for existing facilities could not be finalized;

• High number of complaints received relating to the electricity industry, ranging from tariff increases to disconnections;

8. CEF (PTY) LTD (CEF)

CEF, incorporated in terms of the Central Energy Fund Act, is mandated by the South African government to engage in the acquisition, exploration, generation, marketing and distribution of any energy form and to engage in research relating to the energy sector.

CEF’s activities are housed within CEF (Proprietary) Limited itself and its six active subsidiaries: - The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd (PetroSA) - South African Agency for Promotion of Petroleum Exploration and Exploitation (Pty) Ltd (Petroleum Agency SA) - The South African Gas Development Company (Pty) Ltd (iGas) - Oil Pollution Control South Africa (Association incorporated under Section 21) (OPCSA) - South African National Energy Research Institute (Pty) Ltd (SANERI) - SFF Association (Association incorporated under Section 21) (SFF).

The current mandate for the CEF group is in terms of a Ministerial Directive, which was issued to CEF by the Minister of Minerals and Energy in December 2003.

The year under review was an exciting one for the CEF Group. The holding company progressed a number of renewable energy projects particularly in landfill gas and solar water heaters. Much of the effort was directed towards bringing the projects under feasibility to the point where commercial decisions could be made. There were some delays in a few of projects due to challenges in project economics and with delays in licensing approvals.

The largest subsidiary in the Group, PetroSA, was intensively involved in projects to secure additional feedstock and in progressing towards a decision on the Mthombo refinery. SFF was able to better utilize the storage facilities at Saldanha, and was able to rent some space at the Milnerton facility. OPCSA effectively managed the environmental responsibilities at the Saldanha port. The iGas subsidiary continued to participate in the Rompco pipeline operations and continued investigations into other pipeline and gas options for the country. CEF Carbon entered into a joint venture with the Finnish company GreenStream Network to create a skills development subsidiary called CarbonStream Africa. This will transfer carbon technical skills to a number of young South Africans.

CEF further has shares in a number of associate companies such as the Darling Wind Farm, in a thin–film photovoltaic joint venture and in a compact fluorescent light assembly facility. The latter is in partnership with Phillips and started production during the year.


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9. STATE DIAMOND TRADER (SDT)

Highlights

The economic downturn impacted negatively on the business of the SDT however that led to heightened reaction by the SDT and therefore resulted in the following actions and results: • Interim Sales Strategy was developed, approved by the Board and implemented. An Interim Sales Strategy is essentially a pre-financed

model of trading. • Pre financed model enabled the SDT to devise a good cash flow within the recession period and buy goods with its own money for

mandate clients and as a result no trading interest payable during the year as no loan monies were used. • Quick turnaround of stock-Zero stock at the year end • Operational expenditure streamlined through implementation of cost cutting measures • All audit queries from 2008/09 Audit report were addressed. • More producers on board and supportive • Four(4) Diamond Trainees were appointed by the DMR for purposes of training at the SDT • Secondment of personnel from both DMR and De Beers continued and therefore provided invaluable contribution to the operations of

the SDT.

Challenges

The major challenge for the SDT remained its funding model and therefore no State funding. This resulted in failure to implement the HR Plan. Other challenges were: • Type of goods purchased by the SDT. In terms of the legislation the SDT is obliged to buy a representative sample of what the producer

produced in a production cycle. This does not leave the SDT with much choice but to sell the run of mine parcels to its clients yet there is a high demand in selected goods

• Challenges for clients: Funding, business management skills and markets which continues to plague trading relations between the SDT and its clients.

10. SOUTH AFRICAN DIAMOND AND PRECIOUS METALS REGULATOR (SADPMR)

The core function of the South African Diamonds and Precious Metals Regulator is to regulate the downstream diamonds and precious metals with emphasis on beneficiation.

Since the implementation of the Diamonds Act of 1986 as amended, as well as the Precious Metals Act, 2005, mixed reactions have been experienced from the industry. With diamonds, a total of 2204 applications for a variety of permits and licenses have been received and, only 1637 have been issued. Out of all the applications, only 17 % of these licenses were obtained for beneficiations purposes. The diamond beneficiation industry has been negatively impacted by the economic downturn, while many jobs have been lost in the process .With the precious metals industry, a total of 1377 applications have been received and only 491 were issued .This industry is dominated by the jewellers who make about 75% of the newly issued licenses. In the jewellery industry, a lower number of applications were received than was anticipated.

Indications are that the jewellery industry has also declined over the past three years due to the high prices of gold and platinum.

The Regulator has an obligation to ensure that the license holders comply with the laws and regulations pertaining to these licenses. These include compliance with Broad- Based Socio –Economic Empowerment beneficiation levels, etc. To strengthen this area the Regulator has deployed Diamonds and Precious Metals Inspectors in Cape Town and Durban. These inspectors are located within the regional offices of the Department of Mineral Resources to service the industry within their respective provinces.

PROGRAMME 7

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REPORT OF THE AUDIT COMMITTEE

We are pleased to present our report for the financial year ended 31 March 2010.

Audit Committee Members and Attendance:

The Audit Committee consists of the members listed hereunder and meets at least four (4) times per annum as per its approved charter. During the current year six (6) meetings were held. The attendance of the meetings was as follows:

Name of Member Number of Meetings Held Number of meetings AttendedMr S Sithole (Chairperson) 6 6Ms EH Heyns 6 2*Mr DP van der Nest 6 5*Due�to�ill-health

Audit Committee Responsibility

The Audit Committee reports that it has, during the year under review, adopted the reviewed charter in line with the requirements of Sections 38(1) (a) and 77 of the Public Finance Management Act, Act no. 1 of 1999 and Treasury Regulation 3.1. The Audit Committee further reports that it has satisfied its responsibilities for the year and has conducted its affairs in compliance with the charter.

The effectiveness of internal control

The department has designed the system of internal control to provide cost effective assurance that the department’s goals will be economically, effectively, and efficiently achieved.

In line with the PFMA, the International Standards for the Professional Practice of Internal Auditing issued by the Institute and Internal Auditors, and the King II Report on Corporate Governance requirements, Internal Audit provided the Audit Committee and management with assurance that the internal controls are appropriate and effective. This was achieved by means of the Risk Management process review, governance review as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements, and the management report of the Auditor-General, it was noted that deficiencies in the system of internal control and deviations were reported. These matters have been referred to the Department of Mineral Resources for resolution. The Audit Committee has also reviewed the activities of Risk Management within the department. The Audit Committee was also satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer during the year under review.

REPORT OF THE AUDIT COMMITTEE - SECTION 3

137

Accordingly, with the exception of the reported deficiencies and deviations, we can report that the system of internal control over financial reporting for the period under review was adequate, effective, and efficient.

Evaluation of Financial Statements

The Audit Committee has:

• Reviewed and discussed the Audited Annual Financial Statements to be included in the annual report, with the Auditor-General and the Accounting Officer.

• Reviewed the Auditor-General’s management report and management’s response thereto;• Reviewed the department’s compliance with legal and regulatory provisions; and• Reviewed significant adjustments resulting from the audit.

The Audit Committee accepts the Auditor-General’s report on the Annual Financial Statements, and is of the opinion that the Audited Financial Statements, read together with the report of the Auditor-General, be accepted.

Internal Audit

The Audit Committee reviewed the quarterly reports of internal auditors to ensure the internal audit activity’s effectiveness. The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the department in its audits.

Auditor-General

The Audit Committee has met with the Auditor-General to ensure that there are no unresolved issues.

…………………………………………….Chairperson

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ANNUAL FINANCIAL

STATEMENTS

140

TABLE OF CONTENTS

ANNUAL FINANCIAL STATEMENTS - SECTION 4

Report of the Accounting Officer 141

Report of the Auditor-General 149

Appropriation Statement 153

Notes to the Appropriation Statement 162

Statement of Financial Performance 165

Statement of Financial Position 166

Statement of Changes in Net Assets 167

Cash Flow Statement 168

Notes to the Annual Financial Statements (including Accounting policies) 169

Disclosures Notes to the Annual Financial Statements 187

Annexures 196

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REPORT BY THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA.

1 General review of the state of financial affairs

This report marks the final year of reporting on the Department of Minerals and Energy (DME) following the pronouncement by the President of the Republic of South Africa of the re-organization of government. The split of the DME occurred during the 2009/10 financial year at which point budget allocations were already finalised. In order to ensure continued support for the two new departments, an interim arrangement was adopted whereby the Department of Mineral Resources was providing support services to the Department of Energy as the hosting department. A memorandum of understanding (MoU) was signed between the two Directors General giving effect to the transitional arrangements. The MoU amongst others, made provision for the Director General of Mineral Resources (DMR) to remain the Accounting Officer of the DME.

During the year under review, the department was confronted with financial constraints as the country was going through a recession. This called upon decisive leadership from the department’s executives in implementing measures that would assist in dealing with the containment of costs. Several control measures were adopted and implemented during the reporting period and those included amongst others, curtailment of number of delegates on overseas trips, holding of seminars in the proximity of head quarters, utilizing free venues for meetings, and advertising of certain identified vacancies in government circulars.

Spending outlook

In this reporting period the department was appropriated a total budget of R4, 682 billion. An amount of R396 million was allocated towards Compensation of Employees, R275 million towards acquisition of goods and services, R3, 962 billion transferred to Public and Private corporations, Departmental Agencies and Households, R48 million for the acquisition of capital assets and R926 thousand on writing off of losses.

The table below illustrates the utilization of voted funds per economic classification from 2005/6 to 2009/10.

Table and graph for voted funds:

UTILISATION OF VOTED FUNDS

2009/10 2008/09 2007/08 2006/07 2005/06

R’000 R’000 R’000 R’000 R’000COMPENSATION OF EMPLOYEES 403,323 330,089 290,561 246,154 217,070 GOODS AND SERVICES 263,475 269,408 277,222 254,665 181,577 PAYMENT FOR CAPITAL ASSETS 48,690 18,855 7,470 6,804 5,342 TRANSFER AND SUBSIDIES 3,828,303 3,111,061 2,366,512 2,099,917 1,768,372 THEFT AND LOSSES 925 593 5,602 135 44

UNSPENT 137,288 56,235 27,570 27,425 79,966

TOTALS (BUDGET) 4,682,004 3,786,241 2,974,937 2,635,100 2,252,371

% UNDER SPENDING OF VOTE 2.9% 0.98% 0.93% 1.04% 3.55%

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The department’s budget was dominated by transfers to public corporations and agencies as they drive the implementation of some of the departmental policies and strategic directives. Taking the major share is the Integrated National Electrification Programme (INEP) with R2.63 billion which constitutes 56.24%of the total budget. Other transfers to entities reporting to the Minister amounted to R1.19 billion.

While the department had allocated R395.590 million of the budget to Compensation of Employees, R403 million was utilized for the reporting period. The spending not only relates to the employees currently on the establishment but costs associated with contractual employees, interns and learners.

An amount of R263,475 million was used against the budget of R274,962 million to defray cost of goods and services acquired for the realization of departmental programmes during 2009/10. The department engaged in several relocation projects which involved major revamping of accommodation facilities that had seriously dilapidated and posing a health and occupational risk to employees. The cost associated with operating leases grew exponentially relative to the comparative year from R19 million to R34 million. Consulting services expenditure increased from R59m to R69m due to costs associated with the Rehabilitation programme. The training expenditure also moderately increased which is the indication of the commitment of the department in developing and nurturing its crucial resource. The inventory costs also grew in relation to increase in personnel numbers.

Table for analysis of unspent funds 2009/10

ANALYSIS OF UNSPENT FUNDS 2009/10

2009/10 2009/10

R’000 %COMPENSATION OF EMPLOYEES (7,733) -5.64%GOODS AND SERVICES 11,487 8.3%FINANCIAL TRANSACTIONS IN ASSETS AND LIABILITIES 1 0.00%PAYMENT FOR CAPITAL ASSETS (541) -0.3%TRANSFER AND SUBSIDIES 134,074 97.66%

TOTAL UNSPENT 137,288 100.00%


UNSEPNT

THEFT AND LOSSES

TRANSFER AND SUBSIDIES

PAYMENT FOR CAPITAL ASSETS

GOODS AND SERVICES

COMPENSATION OF EMPLOYEES

UTILISATION OF VOTED FUNDS - 2005/06 TO 2009/10

EXPENDITURE ITEM

R’000

100%

R’000

2009/10 2008/09 2007/08 2006/07 2005/06

R’000 R’000 R’000 R’000

90%

80%

70%

40%

60%

30%

10%

50%

20%

0%

REPORT OF THE ACCOUNTING OFFICER for the year ended 31 march 2010

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The department has for the past three years recorded an under spending below 2 percent. The under spending during the year under review is attributable to non-grid electrification and renewable energy projects. The delay in signing of contracts has resulted in delayed installation of solar home systems in the areas identified in the strategic plan. The department has since finalised the signing of contracts with several service providers in this regard. The grid electrification programme also had R33.4 million remaining during the year owing to municipal agreements that were not finalised on time. Other contributing factors are the renewable energy projects, such as the working for energy and renewable finance & subsidies (REFSO) which had the balance of R5 million apiece. The remaining funds will be surrendered to National Revenue Fund on conclusion of the audit process. Rollover requests have also been made to National Treasury in this regard.

Virement:

The following virement approvals were granted by the Accounting Officer in terms of section 43(1) of the Public Finance Management Act, 1999 (Act 1 of 1999) to utilise savings under main divisions of the vote towards the defrayment of expenditure under other main divisions within the vote:

Shift funds from R’000 MotivationProgramme 1: Administration 1,141 The under spending was due to the implementation of the cost containment

measures.Programme 3: Mineral Regulation 9,902 Under spending due to delays in the implementation of rehabilitation projects and

vacancies resulting from the turn over of staff.Programme 6: Electricity, Nuclear and Clean Energy

1,027 This programme also enjoyed some savings from the implementation of the cost containment measures and other activities that did not realize as anticipated.

Programme 7: Associated Services 4,521 Reprioritization of funds

TOTAL 16,591

Shift funds to R’000 MotivationProgramme 2: Promotion of Mine Health and Safety

5,690 Major spending pressures within the Mine Health and Safety inspectorate relate to the training of Learner Inspectors which was concluded on1 August 2009, payments to IRCA for the development and implementation of the MHSIS system.

Programme 4: Mineral Policy and Promotion 9,213 Spending associated with membership fees to association of African Diamond Producing Countries (ADPA)

Programme 5: Hydrocarbons and Energy Planning

1,688 Major spending pressures within the Hydrocarbons and Energy Planning Branch relate to operational expenditure associated with the licensing and site inspection activities of the Petroleum Controller in regional offices.

TOTAL 16,591

Any other material matter – Soccer World Cup clothing and tickets

The department did not purchase any clothing and tickets for the 2010 soccer world cup

2 Service rendered by the department

2.1 The mission of the Department of Minerals and Energy is to regulate and promote the minerals and energy sectors for the benefit of all. In order to achieve the above mission the department is spilt into five key programmes, which are responsible for; amongst other things:

- executing the department’s statutory mandate to protect the health and safety of the mine employees and people affected by mining activities – Promotion of Mine Health and Safety

- regulating the minerals and mining sector to achieve transformation and sustainable development – Mineral Regulation - formulating mineral related policies and promote the mining and minerals industry of South Africa thus making it attractive to

investors – Mineral Policy and Promotion


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- promoting the sustainable use of energy resources through integrated energy planning and the appropriate promotion, including policy and regulation development of petroleum products, coal, gas renewable energy and energy efficiency – Hydrocarbons and Energy Planning

- ensuring the development, monitoring enhancement and implementation of policies governing the electricity and nuclear sectors and to support the achievement of universal access to electricity, including exercising oversight over state owned entities – Electricity and Nuclear.

- support service mainly focussing on providing support service to the department

2.2 Tariff policy

Tariffs are levied in terms of the Minerals Act, 1991 (Act 50 of 1991), for State owned Mineral Rights. The tariffs are predetermined and approved by National Treasury. Prospecting fees and royalties are globally competitive and do not inhibit the initiation of new mining industry projects.

Exploration fees

Exploration fees were charged in terms of the Minerals Act, 1991 (Act 50 of 1991) where the State was the holder of the mineral rights before 1 May 2004. The approved rates, as from 1 April 2003, started at R3, 00/hectare for the first year and escalated at R1, 00/hectare for the maximum period of 5 years determined by a prospecting lease. For any renewal period, the fee doubled and escalated at R2, 00/hectare/year thereafter. For offshore exploration the same rates applied but for square kilometers.

Due to the promulgation of the Mineral and Petroleum Resources Development Act, Act 28 of 2002 (MPRDA), new prescribed rates apply on all new prospecting rights granted including privately owned land as from 1 May 2004 – see regulation 76 of the new MPRDA. Rights already granted at the time of promulgation, will continue with prospecting fees as set out above.

Exploitation fees (Royalties)

Royalties payable are 1% of gross revenue for all minerals and 5% of gross revenue for diamonds for existing rights. Any new mining rights granted from 1 May 2004 carry no royalties until the Royalty Bill is implemented (the royalty Act came into effect on 1 March 2010).

Mining or removal of diamonds during prospecting

The current level of 5 per cent of gross revenue will remain in force for existing rights.

Exploitation of all precious and base minerals (excluding all sand, stone and clay used for construction purposes)

A royalty of 1% of gross revenue/value free on mine of the mineral content in ore removed, or a saleable product, as determined by a “bona fide, arms length” transaction is payable for existing rights as at 1 May 2004.

In the absence of a bona fide arms length transaction (free on mine), the revenue/value of the mineral content in ore removed, or a saleable product, will be the market price as determined by the Minerals Bureau at the relevant time.

Exploitation of construction materials: sand, stone and clay

Where sand, stone or clay is being removed for commercial purposes, the following royalties were payable from 1 April 2004 until Royalty Bill becomes applicable (1 March 2010):

In the case of short-term (two year) permission, the royalties are:Year 1 – R1-00 per cubic meterYear 2 – R1-05 per cubic meterIn the case of longer-term permissions (five years) and mineral leases (existing rights), the relevant royalty will start at R1-00 per cubic meter for



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the first year, escalating at the rate of R0-05 per cubic meter per year for a period of five years.

Where a local authority is removing material for road and general maintenance, or for upgrading townships, or for any purpose that may be considered as being “RDP”, a token royalty will be payable at R180-00 per year, escalating at R15-00 per annum. This amount will be reviewed on a five yearly basis.

Minimum royalties

Minimum royalties are payable, as a “deposit”, in advance. Whether mining takes place or not in any specific year, the State will receive a measure of a return for any “mining permission” granted. Minimum royalties, as always, may be offset against actual royalties payable. The general formula for the determination of minimum royalties is “ten” percent of the average annual royalties payable in terms of the business plan submitted.

Petroleum products licensing fees

The following fees are charged in terms of the Petroleum Products Amendment Act No. 58 of 2003

Site licence fee R 1,000Wholesale licence fee R 1,000Retail licence fee R 500Annual retail licence fee R 500Temporary retail licence fee R 500Duplicate licence fee R 500Site licence transfer fee R 500Amendment licence fee R 500Manufacturing license fee R10 000Manufacturing annual fee R5 000

3 Capacity constraints

During the period under review, the department experienced serious capacity challenges especially in the support services. Although the department did not experience the same high staff turnover rate compared to the previous reporting period the challenges were around the split of the department.

The split of the Department of Minerals and Energy into two separate departments namely the Department of Mineral Resources (DMR) and Department of Energy (DOE) created immediate capacity constraints which forced the departments to make use of a shared support services until the end of the financial year. The resources within support services had to ensure continued service delivery while simultaneously dealing with the split. During this period the organizational structures for both departments were developed and approved for implementation by 1 April 2010. Capacity constraints are still dominant in the Mineral Regulation, Mine Health and Safety, Hydrocarbons and Energy Planning branches. The restructuring process has presented the department with an opportunity to re-align its structures to the new mandates. Vacancies created as a result of this split will be filled as funding becomes available.

In addressing some of the capacity constraints, the department managed to implement a number of training programmes as identified in the Workplace Skills Plan namely the Secretarial Development Programme, Project Management for Middle Management, Advance Management Development Programme and the Emerging Management Development Programme. All these programmes were successfully completed.


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4 Utilisation of donor funds

UTILISATION OF DONOR FUNDS

2009/10 2008/09 2007/08 2006/07 2005/06DONOR EXPENDITURE 5,849 17,701 3,321 20,331 8,109

UNSPENT 63 5,913 3,642 3,633 722

TOTALS (BUDGET) 5,912 23,614 6,963 23,964 8,831

% UNDER SPENDING OF DONOR FUNDS 1.08% 25.04% 52.31% 15.16% 8.18%

Departmental donor funds mainly consist of grants received in terms of bilateral agreements for co-operation between the South African, Norwegian and Danish Governments. An amount of R5.849 million was carried over from the 2008/09 to the 2009/10 financial year which mainly consisted of funding in respect of the South African Energy Sector Policy Research and Capacity Development Programme (RSA-3001). The purpose of the programme is the implementation of concrete interventions towards the establishment of enabling frameworks for effective governance and regulation, equitable market liberalisation and sustainable economic growth.

The project was concluded on 31 March 2010, all projects deliverables have been achieved and only the administrative winding down is remaining for finalisation during 2010/11.

5 Trading entities and public entities

The department continues to monitor the performance of the entities under its control with specific reference to governance and financial management. The table below illustrates the performance of the entities reporting to the Minister of Minerals and Energy in relation to the Auditor General’s report for 2008/9 financial year. It is clear from this report that the financial controls and monitoring systems put in place are beginning to bear fruits. During 2009/10 the department continued with its oversight over these entities. Although the Auditor-General’s report for 2009/10 will only be finalised in July 2010, it is expected that the entities will continue in this path.

Entity Funding source Audit opinion for 2008/9National Energy Regulator of SA (NERSA) Own (levies) UnqualifiedCouncil for Mineral Technology and Research (Mintek) Own and government grant UnqualifiedElectricity Distribution Holdings Company (EDIH) Own and government grant UnqualifiedNational Nuclear Regulator (NNR) Own and government grant UnqualifiedNuclear Energy Corporation of South Africa (NECSA) Own and government grant UnqualifiedCentral Energy Fund (CEF) Own UnqualifiedSouth African Diamond and Precious Metals Regulator Own and government grant Unqualified


DONOR EXPENDITURE

UNSEPNT

UTILISATION OF DONOR FUNDS - 2005/06 TO 2009/10

FINANCIAL YEAR

100%

2005/06 2006/07 2007/08 2008/09 2009/10

90%

80%

70%

40%

60%

30%

10%

50%

20%

0%


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Entity Funding source Audit opinion for 2008/9Mine Health and Safety Council (MHSC) Own and government grant UnqualifiedCouncil for Geoscience (CGS) Own and government grant UnqualifiedState Diamond Trader (SDT) Own (bail out during 2009/10) Unqualified, but with emphasis of matter

6 Organisations to whom transfer payments have been made

The department transferred a total of R3, 828 to State owned entities, private enterprises in terms of Public Finance Management Act (PFMA) and Division of Revenue Act (DoRA). It is a standard requirement as prescribed by section 38 (J) PFMA that such each entity submits a written assurance that it implements effective, efficient and transparent financial management and internal control systems prior to funding being allocated.

Details of transfers and subsidies

Recipient 2009/10Actual transfer

R thousand

Purpose of transfer payment

Assistance to Mines 31,100 Assistance to marginal mines in the form of pumping subsidies and research to prevent ingress of water into underground holdings (CGS:R17.6m and Mining companies R13.5 m)

Council for Geoscience 132,677 Core funding in terms of establishing actCouncil for Mineral Technology Research 161,108 Core funding in terms of establishing actElectricity Distribution Industry Holdings Company 72,214 Core funding in terms of establishing actESKOM - Integrated National Electrification Programme 1,616,315 Electricity connections for households, clinics and schoolsEskom- EEDSM 80,031 Energy Efficiency Demand Side Management projectIntegrated national electrification programme grant: Municipalities 899,553 Electricity connections for households, clinics and schools Munic- EEDSM 175,000 Energy Efficiency Demand Side Management projectIntegrated National Electrification Programme: Non-grid electrification service providers

1,290 Non-grid connections for schools, clinics and households

National Nuclear Regulator 23,793 Core funding in terms of establishing actNECSA 564,144 Core funding in terms of establishing actSouth African Diamond and Precious Metals Regulator 39,412 Core funding in terms of establishing actMine Health and Safety Council 5,118 Core funding in terms of establishing actIndustrial Development Corporation of SA (Small scale mining) 25,058 Small scale mining projectsState Diamond Trader 1,000 Bail out during recession

7 Corporate governance arrangements

The Department has continued to strengthen its checks and balance mechanisms so as to ensure compliance with the relevant legislative prescripts as well as corporate governance principles and practices.

• The Department has an Internal Audit Activity that is under the guidance, direction and supervision of a Chief Audit Executive. The Function is responsible for providing independent assurance and consulting services. The component is positioned to add value and improve the Department’s operations. To maintain its independence, the Internal Audit Activity appropriately reports administratively to the Director-General and functionally to the Audit Committee. The Unit’s authority includes unlimited access to both the staff and the information. The Function has been operational since 1999 and it obtains its mandate from the Internal Audit Charter, which was reviewed and approved in the reporting period. The Unit developed and obtained the approval of both the annual as well as a rolling three-year strategic plan, which were based on key risks facing the Department. The status of the progress on the performance of the audits on the annual plan was presented to the Audit Committee on a quarterly basis. In order to achieve its main objective of assisting the department to achieve its objectives, the Function reviewed the adequacy, effectiveness, and efficiency of operations with regard to all branches of the Department.


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The audits conducted during the year were mainly compliance, information technology, performance, and financial.

The Unit’s operations are guided by the requirements set out in the legislative prescripts (e.g. the PFMA and the Treasury Regulations) and the standards set by the relevant professional bodies (e.g. the Institute of Internal Auditors).

• The Department has established an Audit Committee in terms of section 77 of the PFMA. The members of the Audit Committee have the requisite knowledge and competence to deal with financial, risk management, governance, ethical and other matters that pertain to its responsibility. The Committee operated in line with its Charter, which was reviewed and approved in the reporting period. During the financial period under review, the Committee met six (6) times. The matters tabled for consideration by the Committee included the review of financial statements, Auditor-General management letters, reports and activities of the Internal Audit Activity and the Risk Management Office, and matters that related to compliance with laws, regulations and policies.

The department continues to minimise risks that it is exposed to by ensuring that all major risks are proactively identified, assessed and managed to acceptable levels. The Department’s risk committee continued in its oversight role of risk management activities in the department. A strategic risk assessment workshop was conducted in order to identify the array of risks the department is exposed to. As a result of this exercise all branch risk profiles were developed and responsibilities for managing these risks were assigned to management and staff. Risk profiles developed from the assessment process are used to inform the department’s internal audit plans.

The department continued to implement its fraud prevention and anti corruption strategy which is in line with minimum anti corruption capacity requirements.

8 Performance information

On a quarterly basis a Quarterly Monitoring Report (QMR) on Performance Information is submitted to the Director-General for approval. These quarterly reports highlight areas of concern for noting while also presenting interventions already in pursuit. Each branch head submits performance information with a signed off Compliance declaration (using the template developed for this reports) to the Compliance Officer, within thirty (30) days of the end of the quarter. The Strategy Risk & Monitoring (SRM/Compliance Office) is responsible for corporate analysis of performance information. This analysis examines performance across the Department in line with the approved strategic plan document. The analysis concentrates on the completeness, reasonability and relevance of the reported information. The SRM then consolidates and forwards

the report to Internal Audit for verification. At year-end, the consolidated report is made available to Auditor- General for audit purposes.

9 Events after reporting date

In May 2010 assets to the value of R15, 428,074.45 were identified and approved for disposal through an auction. These assets are included in the closing balance of assets under note 33. This disposal will be recognised in the asset register and Annual Financial Statements during 2010/11.

10 Approval

The Annual Financial Statements set out on pages 165 to 213 have been approved by the Accounting Officer.

………………………………Advocate Sandile NogxinaDirector-General15 September 2010



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REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF VOTE 28: DEPARTMENT OF MINERALS AND ENERGY FOR THE YEAR ENDED 31 MARCH 2010

REPORT ON THE FINANCIAL STATEMENTS

IntroductionI have audited the accompanying financial statements of the Department of Minerals and Energy which comprise the appropriation statement, the statement of financial position as at 31 March 2010 and the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory information, as set out on pages 153 to 195.

Accounting Officer’s responsibility for the financial statementsThe accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting determined by the National Treasury, as set out in accounting policy note 1, and in the manner required by the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2009 (Act No. 12 of 2009) (DoRA). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor-General’s responsibilityAs required by section 188 of the Constitution of South Africa and section 4 of the Public Audit Act of South Africa, my responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with International Standards on Auditing and General�Notice�1570�of�2009�issued�in�Government�Gazette�32758� of� 27� November� 2009. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Basis for qualified opinion

Receivables for departmental revenueIn terms of section 38(1)(a)(i) and section 40(1)(a) the accounting officer of the department did not ensure that full and proper records of the receivables for departmental revenue of the department is kept as prescribed by the norms and standards. The department could not provide sufficient appropriate audit evidence to support the departmental receivables for revenue balance amounting to R25,6 million (2009: R10,4 million), as stated in note 26 to the financial statements. There were no satisfactorily alternative audit procedures that I could perform to obtain reasonable assurance that all the receivables for departmental revenue were properly recorded and disclosed.

Further, interest was not levied and recorded on all outstanding balances and for the individual receivable balances where interest was levied, the rate used was not in accordance with the rate specified by the minister of finance, as required by Treasury Regulation 11.1.

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Consequently, I did not obtain sufficient appropriate audit evidence to satisfy myself as to the completeness, valuation and rights and obligations of the receivables for departmental revenue.

Qualified OpinionIn my opinion, except for the possible effects of the matters described in the Basis for qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Department of Minerals and Energy as at 31 March 2010, and its financial performance and its cash flows for the year then ended, in accordance with the modified cash basis of accounting determined by the National Treasury, as set out in accounting policy note 1 and in the manner required by the PFMA and DoRA.

Emphasis of matterI draw attention to the matters below. My opinion is not modified in respect of these matters:

Basis of accountingThe department’s policy is to prepare financial statements on the modified cash basis of accounting determined by the National Treasury, as set out in note 1.1 to the financial statements.

Restatement of corresponding figuresAs disclosed in note 22 and note 35 to the financial statements, the corresponding figures for 31 March 2009 have been restated as a result of an error discovered during the year ended 31 March 2010 in the financial statements of the Department of Minerals and Energy as, and for the year ended, 31 March 2009.

Irregular ExpenditureAs disclosed in note 27 to the financial statements, irregular expenditure to the amount of R4,2 million was incurred, as a result of contravention of the authorised delegations of authority of the department, the irregular expenditure was condoned in the financial year.

Material under spending of budgetAs disclosed in the appropriation statement, the department has materially under spent the budget on Programme 7: Associated services to the amount of R123 million.

AccrualsAccruals which exceed the payment terms of 30 days as detailed in Treasury Regulation 8.2.3 amount to R22,2 million. The amount in turn exceeds the savings on programme 1 to programme 6 totalling R13,7 million. The amount of R8,5 million would therefore have constituted unauthorised expenditure should the amounts due have been paid in time.

Additional mattersI draw attention to the matter below. My opinion is not modified in respect of these matters:

Unaudited supplementaryThe supplementary information set out on pages 196 to 213 does not form part of the financial statements and is presented as additional information. I have not audited these schedule(s) and accordingly I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In terms of the PAA of South Africa and General�notice�1570�of�2009,�issued�in�Government�Gazette�No.�32758�of�27�November�2009 I include below my findings on the report on predetermined objectives, compliance with the PFMA, DORA, and financial management (internal control).


REPORT OF THE AUDITOR-GENERAL for the year ended 31 march 2010

151

Findings

Predetermined objectives

Presentation of reported performance information

Incomplete reporting on all predetermined objectives The actual achievements with regards to 26% of all planned indicators and targets specified in the strategic plan for the year under review for the selected programmes were not reported in the annual performance report submitted for audit purposes.

Timeliness of the reported performance information The reliability of 40% of the targets, as set out on pages 17 to 124 of the annual report, could not be verified, since the information was not received in time for audit purposes.

Usefulness of reported performance informationThe following criteria were used to assess the usefulness of the planned and reported performance:• Consistency: Has the department reported on its performance with regard to its objectives, indicators and targets in its approved strategic

plan, i.e. are the objectives, indicators and targets consistent between planning and reporting documents?• Relevance: Is there a clear and logical link between the objectives, outcomes, outputs, indicators and performance targets?• Measurability: Are objectives made measurable by means of indicators and targets? Are indicators well defined and verifiable, and are

targets specific, measurable, and time bound?

The following audit findings relate to the above criteria:

Planned and reported performance targets not specific, measurable and time boundFor the selected programmes, Programme 3: Mineral Regulation and Programme 6: Electricity, Nuclear and Clean Energy, 53% of the planned and reported targets were not: • specific in clearly identifying the nature and the required level of performance;• measurable in identifying the required performance; • Time bound in specifying the time period or deadline for delivery.

Planned and reported indicators/measures are not valid/accurate and complete when compared to source informationFor the selected programmes, 21% of the reported indicator/target were not valid and accurate on the basis of the source information or evidence provided to support the reported.

Reliability of informationReported targets not accurate, as inadequate supporting source information was providedFor the selected programmes 34% of the reported indicators/targets could not be established as sufficient appropriate audit evidence could not be provided for audit purposes.

Compliance with laws and regulations

PFMA and Treasury Regulations of 2005Non-adherence• Contrary to the requirements of Treasury Regulation 8.2.3 and section 38(1)(f) of the PFMA, the accounting officer did not, in all instances,

pay creditors within 30 days from the date of receipt of invoice.• Contrary to the requirements of paragraph 3.4.3 of National Treasury Practice Note No.8 of 2007/2008, a deviation from the tender process

for procurement in excess of R1 million was not reported to the National Treasury and the Auditor General within 10 working days.


152

INTERNAL CONTROL

I considered internal control relevant to my audit of the financial statements and the report on predetermined objectives and compliance with the PFMA and DORA, but not for the purposes of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the deficiencies identified during the audit.

LeadershipLeadership did not exercise adequate oversight responsibility to ensure that management has implemented effective internal controls by gaining an understanding of how senior management has met it responsibilities for the reporting of performance information and the management of receivables for departmental revenue.

Financial and performance management • Management did not fulfil their responsibilities in ensuring that performance information that is reported is valid and accurate and agrees

to the actual performance achieved.• The audit qualification in respect of the receivables for departmental revenue is primarily driven by a lack of an appropriate debtors’ system. • Extensive effort was required to obtain sufficient appropriate audit evidence with regards to the audit of predetermined objectives, tangible

capital assets and receivables for departmental revenue.

GovernanceInternal controls are not selected and developed to prevent/detect and correct material misstatements in financial reporting and reporting on pre-determined objectives.

OTHER REPORTS

InvestigationsAn investigation was completed during the year under review concerning the misappropriation of funds via the Basic Accounting System (BAS) in prior years.

Performance auditsA performance audit was completed during the year under review concerning the rehabilitation of abandoned mines. The report was tabled on 27 November 2009.

Pretoria14 September 2010


153

Appropriation per programme

2009/10 2008/09

APPROPRIATION STATEMENT

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1. Programme 1: Administration Current payment 239,340 (2,465) (11,578) 225,297 224,076 1,221 99.5% 214,322 210,003 Transfers and subsidies 1,284 - (500) 784 450 334 57.4% 1,763 1,660 Payment for capital assets 10,733 2,465 10,937 24,135 24,727 (592) 102.5% 14,360 14,360

2. Programme 2: Promotion of Mine Safety and Health

Current payment 127,453 - 1,696 129,149 129,012 137 99.9% 114,402 113,420 Transfers and subsidies 5,118 - 7 5,125 5,125 - 100.0% 4,922 4,922 Payment for capital assets 456 - 3,987 4,443 4,406 37 99.2% 486 480

3. Programme 3: Mineral Regulation

Current payment 168,066 (2,253) (22,426) 143,387 135,902 7,485 94.9% 149,249 125,159 Transfers and subsidies - - 35 35 35 - 100.0% 11 10 Payment for capital assets - 2,253 12,489 14,742 14,659 83 99.3% 12 11

4. Programme 4: Mineral Policy and Promotion

Current payment 38,505 (10) 5,096 43,591 43,539 52 99.9% 36,712 34,266 Transfers and subsidies 26,058 - - 26,058 26,058 - 100.0% 25,033 24,033 Payment for capital assets - 10 4,117 4,127 4,127 - 100.0% 20 19

5. Programme 5: Hydrocarbons and Energy Planning

Current payment 55,285 - 986 56,271 56,154 117 99.8% 45,241 44,099 Transfers and subsidies - - - - - - 0.0% 100 100 Payment for capital assets - - 702 702 771 (69) 109.8% - -

6. Programme 6: Electricity and Nuclear

Current payment 74,810 (1,000) (27) 73,783 79,039 (5,256) 107.1% 77,868 77,122 Transfers and subsidies 265,153 - - 265,153 255,031 10,122 96.2% 195,546 185,446 Payment for capital assets - 1,000 (1,000) - - - 0.0% 1,806 7

7. Programme 7: Associated Services

Transfers and subsidies 3,669,743 - (4,521) 3,665,222 3,541,605 123,617 96.6% 2,904,388 2,894,889

Subtotal

TOTAL 4,682,004 - - 4,682,004 4,544,716 137,288 97.1 3,786,241 3,730,006

APPROPRIATION STATEMENT for the year ended 31 march 2010

154

2009/10 2008/09

Final Appropriation

Actual Expenditure

Final Appropriation

Actual Expenditure

TOTAL (brought forward)

Reconciliation with statement of financial performance

ADD

Departmental receipts 217,144 264,647Aid assistance - 19,973

Actual amounts per statement of financial performance (total revenue)

4,899,148 4,070,861

ADDAid assistance 5,849 17,703

Actual amounts per statement of financial performance (total expenditure)

4,550,565 3,747,709

Appropriation per economic classification

2009/10 2008/09

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Current paymentsCompensation of employees 405,440 (9,850) - 395,590 403,323 (7,733) 101.9% 333,683 330,089Goods and services 298,019 4,120 (27,177) 274,962 263,475 11,487 95.9% 303,532 273,386Interest and rent on land - - - - - - 0.0% - -Financial transactions in assets and liabilities - 2 924 926 924 2 99.8% 599 593

Transfers and subsidies Provinces and municipalities 1,107,957 - - 1,107,957 1,074,553 33,404 97.0% 595,637 589,139Departmental agencies and accounts 291,816 - - 291,816 291,814 2 100.0% 285,342 284,342Public corporations and private enterprises

2,566,299 - (4,521) 2,561,778 2,461,445 100,333 97.2% 2,248,957 2,235,756

Households 1,284 - (458) 826 491 335 59.4% 1,808 1,824

Payments for capital assetsBuildings & Other fixed structures - - 22,960 22,960 22,879 81 99.6% - -Machinery and equipment 9,689 7,128 7,081 23,898 #24,505 (607) 102.5% 12,573 12,565Software and other intangible assets 1,500 (1,400) 1,191 1,291 1,306 (15) 101.2% 2,312 2,312Land and subsoil assets - - - - - - 0.0% 1,798 -

Total 4,682,004 - 4,682,004 4,544,716 137,288 97.1% 3,786,241 3,730,006# This amount includes assets that are classified under buildings and other fixed structures


APPROPRIATION STATEMENT for the year ended 31 march 2010

155

2009/10 2008/09

Programme 1Detail per sub-programme

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1.1 Corporate Services Current payment 187,367 (2,135) (12,329) 172,903 199,521 (26,618) 115.3% 170,338 170,283 Transfers and subsidies 1,284 - (500) 784 450 334 57.4% 1,763 1,660 Payment for capital assets 10,733 2,260 8,922 21,915 22,737 (822) 103.8% 14,339 14,339

1.2 Deputy Minister Current payment 1,725 - - 1,725 507 1,2178 29.4% - -

1.3 Management Current payment 21,587 (330) 751 22,008 22,278 (270) 101.2% 18,126 17,624 Payment for capital assets - 205 2,015 2,220 1,990 230 89.6% 21 21

1.4 Minister Current payment 1,725 - - 1,725 1,733 (8) 100.5% 1,505 1,502

1.5 Property Management Current payment 26,936 - - 26,936 37 26,899 0.1% 24,353 20,594

Total 251,357 - (1,141) 250,216 249,253 963 99.6% 230,445 226,023

2009/10 2008/09

Programme 1Per Economic classification

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Current paymentsCompensation of employees 103,065 (334) - 102,731 109,782 (7,051) 106.9% 86,811 85,983Goods and services 136,275 (2,131) (12,329) 121,815 113,542 8,273 93.2% 127,243 123,732Financial transactions in assets and liabilities - - 751 751 751 - 100.0% 288 288

Transfers and subsidies to:Public corporations and private enterprises - - - - - - 0.0% 100 -Households 1,284 - (500) 784 451 333 57.4% 1,643 1,660

Payment for capital assetsMachinery and equipment 9,233 3,865 5,283 5,283 5,283 - 100.0% 12,048 12,048Software and other intangible assets 1,500 (1,400) 1,191 1,291 1,306 (15) 101.2% 2,312 2,312

Total 251,357 - (1,141) 250,216 249,253 963 99.6% 230,445 226,023

DETAIL PER PROGRAMME for the year ended 31 march 2010

156

2009/10 2008/09


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2.1 Governance Policy and Oversight

Current payment 46,310 2,999 2,518 51,827 51,825 2 100.0% 48,731 48,346 Transfers and subsidies 5,118 - 2 5,120 5,120 - 100.0% 4,909 4,909 Payment for capital assets 199 - 4,207 4,406 4,406 - 100.0% 473 467

2.2 Mine Health and Safety (Regions)

Current payment 81,143 (2,999) (822) 77,322 77,187 135 99.8% 65,671 65,074 Transfers and subsidies - - 5 5 5 - 100.0% 13 13 Payment for capital assets 257 - (220) 37 - 37 0.0% 13 13

Total 133,027 - 5,690 138,717 138,543 174 99.9% 119,810 118,822

2009/10 2008/09

Programme 2 Per Economic classification

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Current paymentsCompensation of employees 103,938 (9,456) (300) 94,182 94,046 136 99.9% 85,558 85,240Goods and services 23,515 9,456 1,878 34,849 34,849 - 100.0% 28,837 28,174Financial transactions in assets and liabilities - - 118 118 118 - 100.0% 6 5

Transfers and subsidies to:Departmental agencies and accounts 5,118 - - 5,118 5,118 - 100.0% 4,909 4,909Households - - 7 7 6 1 85.7% 14 14

Payment for capital assets 4,387 4,387 4,406 (19) 100.4%

Machinery and equipment 456 - (400) 56 - 56 0.0% 486 480

Total 133,027 - 5,690 138,717 138,543 174 99.9% 119,810 118,822



157

2009/10 2008/09


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3.1 Management Current payment 10,619 - 7,207 17,826 13,925 3,901 78.1% 7,897 7,655

- - 6,991 6,991 6,891 100 98.6% - -

3.2 Mineral Regulation and Administration

Current payment 157,447 (2,253) (29,633) 125,561 121,977 3,584 97.2% 141,352 117,504 Transfers and subsidies - - 35 35 35 - 100,0% 11 10 Payment for capital assets - 2,253 5,498 7,751 7,768 (17) 100.3% 12 11

Total 168,066 - (9,902) 158,164 150,596 7,568 95.2% 149,272 125,180

2009/10 2008/09


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Current paymentsCompensation of employees 85,224 - 5,200 90,424 91,292 (868) 101.0% 72,645 71,776Goods and services 82,842 (2,253) (27,638) 52,951 44,598 8,353 84.8% 76,471 53,250Financial transactions in assets and liabilities - - 12 12 12 - 100.0% 133 133

Transfers and subsidies to:Households - - 35 35 35 - 100.0% 11 10

Payment for capital assetsBuildings & Other fixed structure - - 9,163 9,163 9,063 100 98.6 - -Machinery and equipment - 2,253 3,326 5,579 5,596 (17) 100.3% 12 11

Total 168,066 - (9,902) 158,164 150,596 7,568 95.2% 149,272 125,180


158

2009/10 2008/09


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4.1 Management Current payment 1,895 350 9,688 11,933 11,932 1 100.0% 6,216 5,522 Transfers and subsidies 1,000 - - 1,000 1,000 - 100.0% 1,000 - Payment for capital assets - - 4,127 4,127 4,127 - 100.0% - -

4.2 Mineral Policy Current payment 13,389 (500) (2,370) 10,519 10,510 9 99.9% 5,791 5,567 Payment for capital assets - - - - - - 0.0% 11 11

4.3 Mineral Promotion Current payment 23,221 140 (2,222) 21,139 21,097 42 99.8% 24,705 23,177 Transfers and subsidies 25,058 - - 25,058 25,058 - 100.0% 24,033 24,033 Payment for capital assets - 10 (10) - - - 0.0% 9 8

Total 64,563 - 9,213 73,776 73,724 52 99.9% 61,765 58,318

2009/10 2008/09


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Current paymentsCompensation of employees 29,346 (60) 1,170 30,456 30,455 1 100.0% 23,011 22,606Goods and services 9,159 48 3,914 13,121 13,070 51 99.6% 13,688 11,647Financial transactions in assets and liabilities - 2 12 14 14 - 100.0% 13 13

Transfers and subsidies to:Departmental agencies and accounts 1,000 - - 1,000 1,000 - 100.0% 1,000 -Public corporations and private enterprises 25,058 - - 25,058 25,058 - 100.0% 24,033 24,033

Payment for capital assetsBuildings & other fixed structure - - 4,127 4,127 4,127 - 100.0% - -Machinery and equipment - 10 (10) - - - 0.0% 20 19

Total 64,563 - 9,213 73,776 73,724 52 99.9% 61,765 58,318



159

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5.1 Energy Planning Current payment 14,867 (735) (8,999) 5,133 5,010 123 97.6% 8,283 8,026

5.2 Hydrocarbons Current payment 35,991 785 1,895 38,671 38,669 2 100.0% 32,343 31,519 Transfers and subsidies - - - - - - 0.0% 100 100

5.3 Hydrocarbons and Energy Planning Management

Current payment 4,427 (50) 8,090 12,467 12,475 (8) 100.1% 4,615 4,554 Payment for capital assets - - 702 702 771 (69) 109.8%

Total 55,285 - 1,688 56,973 56,925 48 99.9% 45,341 44,199

2009/10 2008/09


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Current paymentsCompensation of employees 46,957 - (6,600) 40,357 40,311 46 99.9% 30,057 29,266Goods and services 8,328 - 7,575 15,903 15,833 70 99.6% 15,216 14,776Financial transactions in assets and liabilities - - 11 11 10 1 90.9% 58 57

Transfers and subsidies to:Households - - - - - - 0.0% 100 100

Payment for capital assetsMachinery and equipment - - 702 702 771 (69) 109.8% - -

Total 55,285 - 1,688 56,973 56,925 48 99.9% 45,341 44,199


160

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6.1 Clean Energy Current payment 13,271 - (1,627) 11,644 11,391 253 97.8% - - Transfers and subsidies 265,153 - - 265,153 255,031 10,122 96.2% - -

6.2 Electricity Current payment 38,109 (1,075) (800) 36,234 36,099 135 99.6% 55,923 55,883 Transfers and subsidies - - - - - - 0.0% 195,526 185,426 Payment for capital assets - 1,000 (1,000) - - - 0.0% 1,806 7

6.3 Electricity and Nuclear Management

Current payment 6,226 75 5,400 11,701 17,600 (5,899) 150.4% 6,827 6,688

6.4 Nuclear Current payment 17,204 - (3,000) 14,204 13,949 255 98.2% 15,118 14,551 Transfers and subsidies - - - - - - 0.0% 20 20

Total 339,963 - (1,027) 338,936 334,070 4,866 98.6% 275,220 262,575

2009/10 2008/09


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Current paymentsCompensation of employees 36,910 - 530 37,440 37,437 3 100.0% 35,601 35,218Goods and services 37,900 (1,000) (577) 36,323 41,583 (5,260) 114.5% 42,167 41,807Financial transactions in assets and liabilities - - 20 20 19 1 95.0% 100 97

Transfers and subsidies to:Provinces and municipalities 175,000 - - 175,000 175,000 - 100.0% - -Departmental agencies and accounts

- - - - - - 0.0% 10,000 10,000Public corporations and private enterprises 90,153 - - 90,153 80,031 10,122 88.8% 185,506 175,406Households - - - - - - 0.0% 40 40

Payment for capital assetsMachinery and equipment - 1,000 (1,000) - - - 0.0% 8 7Land and subsoil - - - - - - 0.0% 1,798 -

Total 339,963 - (1,027) 338,936 334,070 4,866 98.6% 275,220 262,575



161

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tion

Shift

ing

of

Fund

s

Vire

men

t

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

re

Varia

nce

Expe

nditu

re

as %

of f

inal

ap

prop

riatio

n

Fina

l A

ppro

pria

tion

Act

ual

expe

nditu

re

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

7.1 Assistance to Mines Transfers and subsidies 43,121 - (4,521) 38,600 31,100 7,500 80,6% 41,178 38,178

7.2 Council for Geoscience Transfers and subsidies 132,677 - - 132,677 132,677 - 100.0% 122,672 122,672

7.3 Council for Mineral Technology Research

Transfers and subsidies 161,108 - - 161,108 161,108 - 100.0% 135,834 135,834

7.4 Electricity Distribution Industry Holdings Company


7.5 National Electrification Programme

Transfers and subsidies 2,633,272 - - 2,633,272 2,517,157 116,115 95.6% 1,920,395 1,913,896

7.6 National Nuclear Regulator Transfers and subsidies 23,793 - - 23,793 23,793 - 100.0% 20,333 20,333

7.7 South African Diamond and Precious Metals Regulator

Transfers and subsidies 39,414 - - 39,414 39,412 2 100.0% 40,000 40,000

7.8 South African Nuclear Energy Corporation


Total 3,669,743 - (4,521) 3,665,222 3,541,605 123,617 96.6% 2,904,388 2,894,889

2009/10 2008/09


Adj

uste

d A

ppro

pria

tion

Shift

ing

of

Fund

s

Vire

men

t

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

re

Varia

nce

Expe

nditu

re

as %

of f

inal

ap

prop

riatio

n

Fina

l A

ppro

pria

tion

Act

ual

expe

nditu

re

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Transfers and subsidies to:Provinces and municipalities 932,957 - - 932,957 899,553 33,404 95.3% 595,637 589,139Departmental agencies and accounts 285,698 - - 285,698 285,696 2 100.0% 269,433 269,433Public corporations and private enterprises 2,451,088 - (4,521) 2,446,567 2,356,356 90,211 96.3% 2,039,318 2,036,317

Total 3,669,743 - (4,521) 3,665,222 3,541,605 123,617 96.6% 2,904,388 2,894,889


162

NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2010

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-D) 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 financial transactions in assets and liabilities

Detail of these transactions per programme can be viewed in the note on financial transactions in assets and liabilities 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

Programme 1: Administration 250,216 249,253 963 0.4Programme 2: Promotion of Mine Safety and Health 138,717 138,543 174 0.1Programme 3: Mineral Regulation 158,164 150,596 7,568 4.8Programme 4: Mineral Policy and Promotion 73,776 73,724 52 0.1Programme 5: Hydrocarbons and Energy Planning 56,973 56,925 48 0.1Programme 6: Electricity and Nuclear 338,936 334,070 4,866 1.4Programme 7: Associated Services 3,665,222 3,541,605 123,617 3.4

Total 4,682,004 4,544,716 137,288 2.9

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 395,590 403,323 (7,733) (1.9)Goods and services 274,962 263,475 11,487 4.1Financial transactions in assets and liabilities 926 924 2 0.2

Transfers and subsidies:Provinces and municipalities 1,107,957 1,074,553 33,404 3.9Departmental agencies and accounts 291,816 291,814 2 0.0Public corporations and private enterprises 2,561,778 2,461,445 100,333 2.8Households 826 492 334 40.6

Payments for capital assets:Buildings & Other fixed structure 22,960 22,879 81 0.4Machinery and equipment 23,898 24,505 (607) (2.5)Software and other intangible assets 1,291 1,306 (15) (1.1)

TOTAL 4,682,004 4,544,716 137,288 2.9


163


Programme 1: Administration

The under spending of R963 thousand (0.4%) under Programme 1: Administration mainly relates to outstanding lease payments and accommodation charges payable to the Department of Public Works in respect of the Sub-programme: Property Management. The item goods and services consequently reflects an under spending of R8.27 million.

An over spending of R7.05 million under the item compensation of employees is mainly the result of additional human resources requirements that came as a result of preparatory activities associated with the split of the Department and establishment of two separate departments with effect from 1 April 2010. Although funding were provided through the Adjusted Estimates of National Expenditure process for critical positions and the newly created Ministry of Energy, several preparatory activities (asset management, finance, interim staff establishments, labour management) were not funded through the revised budget process.

Programme 2: Promotion of Mine Health and Safety

The Mine Health and Safety Inspectorate’s budget is mostly personnel driven due to the nature of inspection and monitoring activities performed. On 31 March 2010, the Inspectorate reflected an under spending of R174 thousands. This is due to vacancies within the branch. An amount of R5.69 million was however redirected by means of a virement approval to the inspectorate to cater for excess expenditure under the item goods and services which included expenditure for the training of Learner Inspectors which was concluded on1 August 2009, payments to IRCA for the development and implementation of the MHSIS system, payment to De Loitte’s for the development of a business case to support the integration of the MHSI with the Mine Health and Safety Council, and payment to WITS University for the development and presentation of training programmes for Inspectors.

Programme 3: Mineral Regulation

The under spending of R7.56 million mostly relates to delays in contracts and subsequent payments for projects aimed at rehabilitating ownerless and derelict mines. An amount of R27.6 million under the item goods and services was however reallocated to the item payments for capital assets (R12.4 million), R5.2 million to the item compensation of employees and R9.902 million to other programmes to cater for excess expenditure.

Programme 4: Mineral Policy and Promotion

On 31 March 2010, the Mineral Policy and Promotion Branch disbursed R73.72 million which represents 99.9% of its allocated budget of R73.77 million. An amount of R1.17 million was however reallocated from the item goods and services to the item compensation of employees to cater for higher than anticipated expenditure associated with the remuneration of staff and employment of staff additional to the establishment. Programme 5: Hydrocarbons and Energy Planning

On 31 March 2010, the Hydrocarbons and Energy Planning Branch disbursed R56.93 million which represents 99.9% of its allocated budget of R56.97 million. An amount of R6.60 million was however reallocated from the item compensation of employees to the item goods and services to cater for higher than anticipated expenditure. Major spending pressures within the Hydrocarbons and Energy Planning Branch relates to operational expenditure associated with the licensing and site inspection activities of the Petroleum Controller in regional offices.

Programme 6: Electricity, Nuclear and Clean Energy

An under spending of R10.1 million under the item transfers and subsidies is mainly the result of payments that were not disbursed due to delays in finalising agreements and subsequent transfer payments before 31 March 2010.

164


The Department, due to lack of sufficient capacity internally, took a decision that SANERI be appointed as the implementing agency of the Working for Programme (WFE). Processes of effecting the decision took longer than expected i.e. process of concluding Memorandum of Understanding (MOU) with SANERI took over 6 months. Subsequent to the signing of the MOU, the process of getting funds reclassified which requires National Treasury’s approval commenced late in 2009 and was also delayed due to delays in finalising and approving project plans.

Renewable Energy Finance Subsidy Office (Refso): Out of total allocated budget of R10, 678 million has disbursed R5, 246 million. The main reason for the under spend is delays in the approval of the Renewable Energy Feed in Tariff (REFIT) which requires approval by the National Energy Regulator of South Africa (NERSA). Project developers have halted investments in renewable energy projects until REFIT is fully implemented.

Programme 7: Associated Services

An under spending of R123.6 million under the item transfers and subsidies is mainly the result of payments that were not disbursed due to delays in finalising agreements, late submission of fund requests and subsequent transfer payments before 31 March 2010.

The under spending of R7.5 million under the Sub-programme: Assistance to Mines mainly relate to disbursements in respect of pumping subsidies that were not made to mining companies due to the late submission of invoices from beneficiaries of the subsidy. These funds were reserved for the purpose of pumping ingress water from mines in the Wits Basin.

An amount of R889.5 million from R932.9 million were transferred to Municipalities by the end of March 2010.This represents 95.35% of the total allocation. The under spending is mostly due to the late request of funds by municipalities and delays in finalising service level agreements.

The Department of Energy (DOE), through the Integrated National Electrification Programme (INEP) is responsible for planning, funding and administration of the National Electrification Funding (NEF). This funding is intended for implementation of both Grid and Non Grid electrification programmes. The procurement process has taken a considerable amount of time and hence it was only during the end of the 2009/10 financial year that the process was completed. The 2009/10 financial year funding was hence not utilized for the entire period of the financial year due to the abovementioned delays however, Non Grid service providers have now been appointed and are ready to start with implementation of the 2009/10 programme. On 31 March 2009, a total of R82.71 million in respect of transfer payments to non-grid service providers was not disbursed due to delays in procurement procedures and finalization of agreements.


165

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2010

PERFORMANCE Note 2009/10 2008/09R’000 R’000

REVENUEAnnual appropriation 1 4,682,004 3,786,241Departmental revenue 2 217,144 264,647Aid assistance 3 - 19,973

TOTAL REVENUE 4,899,148 4,070,861

EXPENDITURECurrent expenditureCompensation of employees 4 403,323 330,089Goods and services 5 263,475 269,408Financial transactions in assets and liabilities 6 924 593Aid assistance 3 5,849 7,056

Total current expenditure 673,572 607,146

Transfers and subsidiesTransfers and subsidies 7 3,828,303 3,111,061Aid assistance - 10,647

Total transfers and subsidies 3,828,303 3,121,708

Expenditure for capital assetsTangible capital assets 8 47,384 16,543Software and other intangible assets 8 1,306 2,312

Total expenditure for capital assets 48,690 18,855

TOTAL EXPENDITURE 4,550,565 3,747,709

SURPLUS/(DEFICIT) FOR THE YEAR 348,583 323,152

Reconciliation of Net Surplus/(Deficit) for the yearVoted funds 15 137,288 56,235Departmental revenue 16 217,144 264,647Aid assistance 3 (5,849) 2,270

SURPLUS/(DEFICIT) FOR THE YEAR 348,583 323,152

166

STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2010

POSITION Note 2009/10 2008/09R’000 R’000

ASSETS

Current assets 212,761 176,032Cash and cash equivalents 10 192,279 127,225Prepayments and advances 11 5,902 19,133Receivables 12 14,580 29,674

Non-current assets 2,205 2,205Investments 13 2,205 2,205

TOTAL ASSETS 214,966 178,237

LIABILITIES

Current liabilities 211,699 175,188Voted funds to be surrendered to the Revenue Fund 15 137,288 54,105Departmental revenue to be surrendered to the Revenue Fund 16 74,344 115,158Payables ��17 4 13Aid assistance unutilised 3 63 5,912

TOTAL LIABILITIES 211,699 175,188

NET ASSETS 3,267 3,049

Represented by:Capitalisation reserve 2,205 2,205Recoverable revenue 1,062 844

TOTAL 3,267 3,049


167

STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2010

NET ASSETS Note 2009/10 2008/09R’000 R’000

Capitalisation ReservesOpening balance 2,205 2,205Closing balance 2,205 2,205

Recoverable revenueOpening balance 844 861

Debts revised 218 (17)Closing balance 1,062 844

TOTAL 3,267 3,049

168

CASH FLOW STATEMENTfor the year ended 31 March 2010

CASH FLOW Note 2009/10 2008/09R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 4,899,148 4,068,731

Annual appropriated funds received 1.1 4,682,004 3,784,111Departmental revenue received 2 217,144 264,647Aid assistance received 3 - 19,973

Net (increase)/decrease in working capital 28,316 (36,411)Surrendered to Revenue Fund (312,063) (275,658)Current payments (673,572) (607,146)Transfers and subsidies paid (3,828,303) (3,121,708)

Net cash flow available from operating activities 18 113,526 27,808

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (48,690) (18,855)

Net cash flows from investing activities (48,690) (18,855)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets 218 (17)

Net cash flows from financing activities 218 (17)

Net increase/(decrease) in cash and cash equivalents 65,054 8,936

Cash and cash equivalents at beginning of period 127,225 118,289

Cash and cash equivalents at end of period 19 192,279 127,225


169

The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, 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, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 2 of 2006.

1. Presentation of the Financial Statements

1.1 Basis of preparation

The Financial Statements have been prepared on a modified cash basis of accounting, except where stated otherwise. The modified cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

1.3 Rounding

Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000).

1.4 Comparative figures

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.

1.5 Comparative figures - Appropriation Statement

A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement.

2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective.

The total appropriated funds received during the year are presented in the statement of financial performance.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial

Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position.

ACCOUNTING POLICIESfor the year ended 31 March 2010

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2.2 Departmental revenue

All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the statement of financial position.

No accrual is made for the amount receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure note to the annual financial statements.

2.3 Direct Exchequer receipts / payments

All direct exchequer receipts are recognised in the statement of financial performance when the cash is received and subsequently paid into the National/Provincial Revenue Fund, unless otherwise stated.

All direct exchequer payments are recognised in the statement of financial performance when final authorisation for payment is effected on the system (by no later than 31 March of each year).

Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position.

2.4 Aid assistance

Aids assistance is recognised as revenue when received

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements

The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement of financial performance when final authorisation for payments is effected on the system (by no later than 31 March of each year)

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of financial position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of financial position.

All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the statement of financial performance when final authorisation for payments effected on the system (by no later then 31 March of each year)

Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of financial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund.


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3. Expenditure

3.1 Compensation of employees

3.1.1 Short-term employee benefits

The cost of short-term employee benefits are expensed in the statement of financial performance when financial authorisation for payment is effected on the system (by no later then 31 March each year)

Short-tem employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts must not be recognised in the statement of financial performance or position.

Employee cost are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time in the project. These payments form part of expenditure for capital assets in the statement of financial performance.

3.1.2 Post retirement benefits

Employer contributions (i.e. social contributions) are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March each year).

No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Funds and not in the financial statements of the employer department.

Social contribution (such as medical benefits) made by the department for certain of its ex-employees are classified as transfers to households in the statement of financial performance.

3.1.3 Termination benefits

Termination benefits such as severance packages are recognised as an expense in the statement of financial performance as a transfer (to households) when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.1.4 Other long-term employee benefits

Other long-term employee benefits (such as capped leave) are recognised as an expense in the statement of financial performance as a transfer (to households) when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

Long-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements.

3.2 Goods and services

Payments made for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current.

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3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.

3.4 Financial transactions in assets and liabilities

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements amounts.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date of approval.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.


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4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost.

Bank overdrafts are shown separately on the face of the statement of financial position.

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.

4.2 Other financial assets

Other financial assets are carried in the statement of financial position at cost.

4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the statement of financial position when the payments are made and where the goods and services have not been received by year end.

Prepayments and advances outstanding at the end of the year are carried in the statement of financial position at cost.

4.4 Receivables

Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party or from the sale of goods/rendering of services.

Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentials irrecoverable are included in the disclosure notes.

4.5 Investments

Capitalised investments are shown at cost in the statement of financial position.

Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.

4.6 Loans

Loans are recognised in the statement of financial position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the statement of financial position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

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4.7 Inventory

Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition.

All inventory items at year-end are reflected using the weighted average cost.

4.8 Capital assets

4.8.1 Movable assets

Initial recognitionA capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register R1.

Subsequent recognitionSubsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital asset” and is capitalised in the asset register of the department on completion of the project.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.8.2 Immovable assets

Initial recognitionA capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated.

Subsequent recognitionWork-in-progress of a capital nature is recorded in the statement of financial performance as “expenditure for capital asset”. On completion, the total cost of the project is included in the asset register of the department that legally owns the asset or the provincial/national department of public works.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

5. Liabilities

5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position.


175


5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is possible that an inflow of economic benefits will flow

to the entity.5.4 Commitments

Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.

5.7 Lease commitments

Finance leaseFinance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as an expense in the statement of financial performance and are apportioned between the capital and interest portions. The finance lease liability is disclosed in the disclosure notes to the financial statements.

Operating leaseOperating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement.

5.8 Provisions

Provisions are disclosed 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 will be required to settle the obligation and a reliable estimate of the obligation can be made.

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6. Receivables for departmental revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements.

7. Net Assets

7.1 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 underlining asset is disposed and the related funds are received.

7.2 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.

8. Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes.

9. Key management personnel

Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnerships

A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.


177

NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2010

1. Annual Appropriation

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds):

Final

Appropriation

Actual Funds

Received

Funds not requested/

not received

Appropriationreceived 2008/09

R’000 R’000 R’000 R’000

Administration 250,216 250,216 - 230,445

Promotion of Mine Safety and Health 138,717 138,717 - 119,810

Mineral Regulation 158,164 158,164 - 149,272

Mineral Policy and Promotion 73,776 73,776 - 61,765

Hydrocarbons and Energy Planning 56,973 56,973 - 45,341

Electricity, Nuclear and Clean Energy 338,936 338,936 - 275,220

Associated Services 3,665,222 3,665,222 - 2,904,388

Total 4,682,004 4,682,004 - 3,786,241

2. Departmental revenue

Note 2009/10 2008/09R’000 R’000

Sales of goods and services other than capital assets 2.1 5,512 5,638

Fines, penalties and forfeits 2.2 382 112

Interest, dividends and rent on land 2.3 210,791 256,089

Financial transactions in assets and liabilities 2.4 459 2,808

Departmental revenue collected 217,144 264,647

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department 5,485 5,634

Sales by market establishment 89 83

Administrative fees 5,063 5,385

Other sales 333 166

Sales of scrap, waste and other used current goods 27 4

Total 5,512 5,638

2.2 Fines, penalties and forfeits

Penalties 382 112

Total 382 112

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2.3 Interest, dividends and rent on land

Note 2009/10 2008/09R’000 R’000

Interest 515 409

Rent on land 210,276 255,680

Total 210,791 256,089

2.4 Financial transactions in assets and liabilities

Receivables 254 433Other Receipts including Recoverable Revenue 205 2,375

Total 459 2,808

3. Aid assistance

3.1 Aid assistance received in cash from RDP

ForeignOpening Balance 5,912 3,642Revenue - 19,973Expenditure (5,849) (17,703)

Current (5,849) (7,056)Transfers - (10,647)

Closing Balance 63 5,912

3.2 Total assistance

Opening Balance 5,912 3,642Revenue - 19,973Expenditure (5,849) (17,703)

Current (5,849) (7,056)Transfers - (10,647)

Closing Balance 63 5,912

Analysis of balanceAid assistance unutilised RDP 63 5,912

Closing balance 63 5,912

3.3 Aid Assistance surplus/ (deficit) for the year

Revenue - 19,973Expenditure (5,849) (17,703)Balance (5,849) 2,270


179


4. Compensation of employees

4.1 Salaries and Wages

Note 2009/10 2008/09R’000 R’000

Basic salary 259,530 207,803Performance award 9,474 8,401Service Based 1,325 1,944Compensative/circumstantial 7,662 8,595Periodic payments 1,526 2,950Other non-pensionable allowances 76,950 62,499

Total 356,467 292,192

4.2 Social contributions

Employer contributionsPension 33,503 26,771Medical 13,294 11,091Bargaining council 59 35

Total 46,856 37,897

Total compensation of employees 403,323 330,089

Average number of employees 1,272 1,169

5. Goods and services

Administrative fees 3,126 3,614

Advertising 2,829 16,009

Assets less then R5,000 5.1 4,958 3,803

Bursaries (employees) 2,148 2,340

Catering 2,263 2,732

Communication 19,874 17,207

Computer services 5.2 11,712 16,930

Consultants, contractors and agency/outsourced services 5.3 69,196 59,101

Entertainment 16 12

Audit cost – external 5.4 3,436 3,468

Inventory 5.5 9,276 8,537

Operating leases 34,231 19,413

Owned and leasehold property expenditure 5.6 2,740 3,914

Travel and subsistence 5.7 67,458 79,317

Venues and facilities 5,454 11,239

Training and staff development 7,325 6,761

Other operating expenditure 5.8 17,433 15,011

Total 263,475 269,408

180


5.1 Assets less than R5,000

Note 2009/10 2008/09R’000 R’000

Tangible assetsMachinery and equipment 4,956 3,803

Intangible assets 2 -

Total 4,958 3,803

5.2 Computer services

SITA computer services 3,379 6,912External computer service providers 8,333 10,018

Total 11,712 16,930

5.3 Consultants, contractors and agency/outsourced services

Business and advisory services 32,166 18,616Infrastructure and planning 18,665 16,822Legal costs 7,724 12,465Contractors 9,052 8,293Agency and support/outsourced services 1,589 2,905

Total 69,196 59,101

5.4 Audit cost – External

Regularity audits 2,764 2,628Performance audits 672 840

Total 3,436 3,468

5.5 Inventory

Learning and teaching support material 280 371Fuel, oil and gas 13 24Other consumable materials 1,070 705Maintenance material 408 177Stationery and printing 7,502 7,222Medical supplies 3 38Total 9,276 8,537

5.6 Owned and leasehold property expenditure

Municipal services 821 2,681Other 1,919 1,233

Total 2,740 3,914


181


5.7 Travel and subsistence

Note 2009/10 2008/09R’000 R’000

Local 57,872 54,578Foreign 9,586 24,739

Total 67,458 79,317

5.8 Other operating expenditure

Professional bodies, membership and subscription fees 12,675 10,932Resettlement costs 2,350 2,096Other 2,408 1,983

Total 17,433 15,011

6. Financial transactions in assets and liabilities

Other material losses written off 6.1 174 -Debts written off 6.2 751 593

Total 925 593

6.1 Other material losses written off

Nature of lossesGovernment Garage and Car rental accidents 174 -

Total 174 -

6.2 Debts written off

Nature of debts written offGovernment Garage and Car rental accidents - 156Other debts 751 437

Total 751 593

7. Transfers and subsidies

Provinces and municipalities Annex 1A 1,074,553 589,139Departmental agencies and accounts Annex 1B 291,814 284,342Public corporations and private enterprises Annex 1C 2,461,447 2,235,756Households Annex 1D 489 1,824Gifts, donations and sponsorships made Annex 1G - -

Total 3,828,303 3,111,061

182


8. Expenditure for capital assets

Note 2009/10 2008/09R’000 R’000

Tangible assets 47,384 16,543Buildings and other fixed structures 26,917 3,978Machinery and equipment 20,467 12,565

Software and other intangible assets 1,306 2,312Computer software 1,306 2,312

Total 48,690 18,855

8.1 Analysis of funds utilised to acquire capital assets – 2009/10

Voted funds Aid assistance TotalR’000 R’000 R’000

Tangible assets 47,384 - 47,384Buildings and other fixed structures 26,917 - 26,917Machinery and equipment 20,467 - 20,467

Software and other intangible assets 1,306 - 1,306Computer software 1,306 - 1,306

Total 48,690 - 48,690

8.2 Analysis of funds utilised to acquire capital assets – 2008/09

Voted funds Aid assistance TotalR’000 R’000 R’000

#Tangible assets 16,543 - 16,543Buildings and other fixed structures 3,978 - 3,978Machinery and equipment 12,565 - 12,565

Software and other intangible assets 2,312 - 2,312Capitalised development costs 2,312 - 2,312

Total 18,855 - 18,855#Prior year figures were restated due to incorrect classification.

9. Fruitless and Wasteful Expenditure

9.1 Reconciliation of fruitless and wasteful expenditue

2009/10 2008/09R’000 R’000

Opening balance - 56Less: Amounts condoned - (54) Current - (54)Less: Amounts transferred to receivables for recovery - (2)

Fruitless and wasteful expenditure awaiting condonement - -


183


10. Cash and cash equivalents

Note 2009/10 2008/09R’000 R’000

Consolidated Paymaster General Account 158,596 16,281Disbursements (28) (21)Cash on hand 100 100Cash with commercial banks (Local) 33,611 110,865

Total 192,279 127,225

11. Prepayments and advances

Travel and subsistence 67 133Advances paid to other entities 5,835 19,000

Total 5,902 19,133

12. Receivables

2009/10 2008/09R’000 R’000 R’000 R’000 R’000

Note

Less than one year

One to three years

Older than three years Total Total

Claims recoverable 12.1 18 - - 18 130

Recoverable expenditure 12.2 2,820 9,534 - 12,354 26,770Staff debt 12.3 846 968 394 2,208 2,739Other debtors 12.4 - - - - 35

Total 3,684 10,502 394 14,580 29,674

12.1 Claims recoverable

Note 2009/10 2008/09R’000 R’000

National departments 18 130

Total 18 130

184


12.2 Recoverable expenditure (disallowance accounts)

Note 2009/10 2008/09R’000 R’000

Disallowance Damages and Losses 7,612 7,765Sal: Recoverable 86 166Sal: Tax Debt 7 4Sal: Income Tax 1,068 981Disallowance Dishonoured Cheques - 2Disallowance Miscellaneous 3,487 17,836Sal: Rent Non Recoverable: CL - 13Sal: Reversal Control:CL 94 3

Total 12,354 26,770

Disallowance damages include fraudulent payments of R7.6 million currently held by the commercial banks. The investigation on this fraud was concluded during the year under review.

12.3 Staff debt

Debtors 2,208 2,739

Total 2,208 2,739

12.4 Other debtors

Mineral Rights Claim Licence - 35

Total - 35

13. Investments

Non-Current Shares and other equity Annex 2B 2,205 2,205

Total 2,205 2,205

Analysis of non current investmentsOpening balance 2,205 2,205

Closing balance 2,205 2,205

14. Loans

The loan to the Portuguese Government towards the Hydro Electrica de Cahora Bassa scheme was written down from R347 million to R1-00 during the 2003/04 financial year. This amount includes capitalised interest of R308 million while the capital amount in respect of the loan was R39 million.


185


15. Voted funds to be surrendered to the Revenue Fund

Note 2009/10 2008/09R’000 R’000

Opening balance 54,105 27,570Transfer from statement of financial performance 137,288 56,235Voted funds not requested/not received - (2,130)Paid during the year (54,105) (27,570)


16. Departmental revenue to be surrendered to the Revenue Fund

Opening balance 115,158 98,599Transfer from Statement of Financial Performance 217,144 264,647Paid during the year (257,958) (248,088)


17. Payables – current

Clearing accounts 17.1 4 13

Total 4 13

17.1 Clearing accounts

Salary Pension Funds 4 10Private Telephone - 1Sal: Medical Aid - 2

Total 4 13

18. Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial Performance 348,583 323,152Add back non cash/cash movements not deemed operating activities (235,057) (295,344)(Increase)/decrease in receivables – current 15,094 (17,398)(Increase)/decrease in prepayments and advances 13,231 (18,803)(Increase)/decrease in other current assets - 56Increase/(decrease) in payables – current (9) (266)Expenditure on capital assets 48,690 18,855Surrenders to Revenue Fund (312,063) (275,658)Voted funds not requested/not received - (2,130)

Net cash flow generated by operating activities 113,526 27,808

186


19. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2009/10 2008/09R’000 R’000

Consolidated Paymaster General account 158,596 16,281Disbursements (28) (21)Cash on hand 100 100Cash with commercial banks (Local) 33,611 110,865

Total 192,279 127,225


187

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2010

These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.

20. Contingent liabilities and contingent assets

20.1 Contingent liabilities

Note 2009/10 2008/09R’000 R’000

Liable to NatureMotor vehicle guarantees Employees Annex 3A 118 329Housing loan guarantees Employees Annex 3A 143 474Other guarantees Annex 3A 38,937 149,618Claims against the department Annex 3B 299,961 100,985Other departments (interdepartmental unconfirmed balances) Annex 5 8,345 2,814Other Annex 3B 19,970 19,580

Total 367,474 273,800

20.1 Potential Liabilities in respect of the environmental rehabilitation comprises of two scenarios: potential liabilities arising from derelict and ownerless mines, where no provision was made by the miner for the rehabilitation of the environment. The responsibility for rehabilitation of these sites reverts to the state. During 2007/8, the department finalised the process of quantifying the State’s potential liability for derelict and ownerless mines. Owing to the fact that it has not been possible to do a detailed assessment of the environmental and safety conditions of all thousands of entries in the database of D&O Mines, and also for the fact that it would not be practical to obtain a detailed cost estimate for rehabilitation of these mines, a number of assumptions had to be made to enable the estimation of the rehabilitation costs. Potential alternatives to rehabilitation such as:

• development of abandoned mines into tourist attractions, • productive non-mining land use on mine sites, • re-issuance of mining permit or rights etc,

were as well not explored and such developments on these mines may change the potential liability by the state and hence the amount of this obligation could not be measured with sufficient reliability. The other scenario relates to potential liabilities arising from the Miner’s inability to restore the environment back to its original state subsequent to mining activities – where provision was made either through a trust fund, bank guarantees or cash guarantees.

It should be noted that the National Strategy for the management and rehabilitation of derelict and ownerless mines in South Africa provides a framework within which the State can implement management measures, including undertaking the rehabilitation of derelict and ownerless mines.

20.2 The department has a potential liability arising from decontamination and decommissioning of past strategic nuclear facilities as per section 1 (xii) (a) of the Nuclear Energy Act, Act No.46 of 1999. In terms of the Cabinet approved Nuclear Liabilities Management Plan, the liability was estimated at R1.8 billion Rands (2004). However this amount cannot be considered a reasonable estimate due to conditions associated with estimated amount. The department has developed a policy procedure for the management of Nuclear Liabilities. In terms of this procedure, the liability must be reassessed every 5 years or earlier if the Minister so requires. During 2009/10, Necsa received R82 million for this purpose.

188


21. Contingent Asset

The department has a contingent asset of R5.9 million relating to the payment made for feasibility studies on the land secured for Independent Power Plant project.

22. Commitments

Note 2009/10 2008/09R’000 R’000

Current expenditureApproved and contracted 40,525 77,052

Capital expenditureApproved and contracted 58,477 10,474

Total Commitments 99,002 87,526

The prior year figures were restated with an amount of R10.474 million.

23. Accruals

Listed by economic classification30 Days 30+ Days Total Total

Goods and services 17,932 1,705 19,637 11,818Machinery and equipment 400 - 400

Total 18,332 1,705 20,037 11,818

Note 2009/10 2008/09R’000 R’000

Listed by programme levelAdministration 17,112 6,812Promotion of Mine Safety and Health 1,880 3,015Mineral Regulation 55 25Mineral Policy and Promotion 894 591Hydrocarbons and Energy Planning 59 984Electricity, Nuclear and Clean Energy 37 391

Total 20,037 11,818

Confirmed balances with other departments Annex 5 20,488 1,540

Total 20,488 1,540

24. Employee benefits

Leave entitlement 14,699 11,768Service bonus (Thirteenth cheque) 10,543 8,193Performance awards 5,934 -Capped leave commitments 11,025 10,280

Total 42,201 30,241

An amount of R566 thousand is owed to the department by employees in terms of 477.4 days taken without adequate leave credits.


189


25. Lease commitments

25.1 Operating leases expenditure

2009/10 Land

Buildings and other fixed structures

Machinery and equipment

TotalNot later than 1 year - 63,449 746 64,195Later than 1 year and not later than 5 years - 303,669 662 304,331Later than five years - - - -

Total lease commitments - 367,118 1,408 368,526

2008/09 Land

Buildings and other fixed structures

Machinery and equipment

TotalNot later than 1 year - 39,346 338 39,684Later than 1 year and not later than 5 years - 252,465 300 252,765Later than five years - 67,015 - 67,015

Total lease commitments - 358,826 638 359,464

Most parking spaces at Mineralia centre are used for Government Garage cars and some are sub-leased to DME officials at a nominal rate of R30 per month.

Note 2009/10 2008/09R’000 R’000

Rental earned on lease sub-leased assets 3 89 83

Total 89 83

26. Receivables for departmental revenue

Interest, dividends and rent on land 25,567 10,437

Total 25,567 10,437

26.1 Analysis of receivables for departmental revenue

Opening balance 10,437 7,034Less: amounts received - -Add: amounts recognised 15,130 3,403


The receivable amount disclosed is based on the prospecting fees outstanding and minimum royalties collectable in terms of contracts. The amount might change on receipt of declarations from the debtors and adjustment of applicable interest.

190


27. Irregular expenditure

27.1 Reconciliation of irregular expenditure

2009/10 2008/09R’000 R’000

Opening balance - -Add: Irregular expenditure – relating to prior year - -Add: Irregular expenditure – relating to current year 4,203 -Less: Amounts condoned (4, 203) -Less: Amounts recoverable (not condoned) - -Less: Amounts not recoverable (not condoned) - -Irregular expenditure awaiting condonation - -

Analysis of awaiting condonation per age classificationCurrent year - -Prior years - -Total - -

27.2 Details of irregular expenditure – current year

Incident

Non Compliance with Departmental Procedures

Disciplinary steps taken/Criminal proceedings:

Disciplinary Process

2009/10 R’000 4,203

Total 4,203

27.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2009/10R’000

Non Compliance with Departmental procedures Condoned - No Sanction requiredCondoned – Disciplinary process still in progress

3,366 837

Total 4,203

27.4 Details of irregular expenditure recoverable (not condoned)

Incident 2009/10R’000

-

Total -

27.5 Details of irregular expenditure not recoverable (not condoned)

Incident 2009/10R’000

-

Total -


191


27.6 Details of irregular expenditures under investigation

Incident

2009/10R’000

Condoned but Disciplinary action still in progress 837Total 837

28. Related party transactions

Payments made 2009/10 2008/09R’000 R’000

Goods and services - 40,000Transfers 17,600 18,349Total 17,600 58,349

Entity Nature of Relationship Type of Transactions Elements of TransactionsCouncil for Mineral Technology and Research

An entity under the control of the Minister

Payment for derelict and ownerless mines rehabilitation

Rehabilitation of derelict and ownerless mines

Council for Geoscience An entity under the control of the Minister

Transfers for the implementation of water ingress project – R17,600

Implementation of water ingress project

29. Key management personnel

No. of Individuals 2009/10 2008/09R’000 R’000

Political office bearers (provide detail below)Officials:

Ministers and Director Generals 5 6,038 3,026Level 14 (incl. CFO if at a lower level) 40 27,339 21,712

Total 33,377 24,738

30. Provisions

Potential irrecoverable debtsStaff debtors 394 954Other debtors - 113Interest, Dividends and Rent on land 10,165 6,780

Total 10,559 7,847

192


31. Financial Transactions in Assets and Liabilities

Other Losses Written offLaptops - 71Cell phones 57 142

Total 57 213

32. Non-adjusting events after reporting date

In May 2010 assets to the value of R15, 428, 074. 45 were identified and approved for disposal through an auction. These assets are included in the closing balance of assets under note 33. This disposal will be recognised in the asset register and Annual Financial Statements during 2010/11.

33. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Opening balance

Curr Year Adjust-ments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 32,322 1,342 20,621 1,813 52,472Transport Assets - - 1,990 - 1,990Computer equipment 18,268 664 9,128 1,111 26,949Furniture and office equipment 14,021 678 6,746 702 20,743Other machinery and equipment 33 - 2,757 - 2,790

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 32,322 1,342 20,621 1,813 52,472

33.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Cash 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 20,467 28 - 126 20,621Transport assets 1,990 - - - 1,990Computer equipment 9,025 - - 103 9,128Furniture and office equipment 6,695 28 - 23 6,746Other machinery and equipment 2,757 - - - 2,757

TOTAL ADDITIONS TO MOVABLE TANGIBLE

CAPITAL ASSETS20,467 28 - 126 20,621


193


33.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Sold for cash Transfer out or

destroyed or scrappedTotal disposals Cash Received

ActualR’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT - 1,813 1,813 -Computer equipment - 1,111 1,111 -Furniture and office equipment - 702 702 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 1,813 1,813 -

33.3 Movement for 2008/09

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 21,256 11,339 273 32,322Computer equipment 13,459 4,894 85 18,268Furniture and office equipment 7,764 6,445 188 14,021Other machinery and equipment 33 - - 33

TOTAL MOVABLE TANGIBLE ASSETS 21,256 11,339 273 32,322

33.4 Minor assets

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2010Intangible assets Heritage assets Machinery and equipment Biological assets Total

R’000 R’000 R’000 R’000 R’000

Minor assets - - 21,621 - 21,621TOTAL - - 21,621 - 21,621

Intangible assets Heritage assets Machinery and equipment Biological assets TotalNumber of minor assets at cost - - 20,459 - 20,459TOTAL NUMBER OF MINOR ASSETS - - 20,459 - 20,459

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2009Intangible assets Heritage assets Machinery and equipment Biological assets Total

R’000 R’000 R’000 R’000 R’000

#Minor assets - - 16,661 - 16,661TOTAL - - 16,661 - 16,661

Intangible assets Heritage assets Machinery and equipment Biological assets Total# Number of minor assets - - 17,542 - 17,542TOTAL NUMBER OF MINOR ASSETS - - 17,542 - 17,542

# Prior year figures were adjusted due to reporting guide change in the current financial year for minor assets.

194


34 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Opening balance

Current Year Adjustments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

Computer software 5,427 - 1,306 - 6,733Other intangibles 199 - - - 199

TOTAL INTANGIBLE CAPITAL ASSETS 5,626 - 1,306 - 6,932

34.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Cash Non-Cash (Development

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

Computer software 1,306 - - - 1,306

TOTAL ADDITIONS TO INTANGIBLE CAPITAL

ASSETS1,306 - - - 1,306


MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

Computer software 3,115 2,312 - 5,427Other intangibles 199 - - 199TOTAL INTANGIBLE CAPITAL ASSETS 3,314 2,312 - 5,626

35 IMMOVABLE TANGIBLE CAPITAL ASSETS

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

STRUCTURES - 2,829 - 2,829Other Fixed Structure - 2,829 - 2,829LAND AND SUBSOIL ASSETS 228 - - 228Land 228 - - 228TOTAL IMMOVABLE TANGIBLE ASSETS 228 2,829 - 3,057


195


35.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010Cash 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

STRUCTURES 26,917 - (24,088) - 2,829Other Fixed Structure 26,917 - (24,088) - 2,829TOTAL IMMOVABLE TANGIBLE ASSETS 26,917 - (24,088) - 2,829


MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

LAND AND SUBSOIL ASSETS 228 - - 228Land 228 - - 228TOTAL IMMOVABLE TANGIBLE ASSETS 228 - - 228

196

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2,2

60

100.

0%

200

D

ihla

beng

-

- -

- -

- -

- -

0.0%

3,00

0 D

ikga

tlong

95

2 -

- 95

2

952

-

-

952

47

8 50

.0%

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rake

inst

ein

3

,550

-

-

3,55

0 3,

550

- -

3

,550

3

,550

10

0.0%

800

E

kurh

ulen

i

- -

-

-

-

- -

-

-

0.0%

8,9

62

Elia

s M

otso

aled

i 3,

200

- -

3,2

00

1

,742

1,

458

-

1

,742

-

0.0%

- E

lund

ini

5,

000

- -

5,

000

5

,000

-

-

5,0

00

1

,250

25

.0%

5,0

00

Em

alah

leni

3,

924

- -

3,9

24

3

,924

-

-

3,9

24

3

,924

10

0.0%

- E

mfu

leni

-

-

-

-

-

- -

-

- 0.

0% 1

,000

E

mna

mbe

thi-L

adys

mith

- -

-

-

- -

-

-

- 0.

0%

1,65

6 E

mth

anje

ni

708

-

-

708

7

08

- -

708

708

10

0.0%

- E

ngco

bo

65,0

00

- -

65,0

00

65,

000

- -

65,

000

40,

000

62.0

%

-

eTh

ekw

ini

47,8

00

- -

47,8

00

47,

800

- -

4

7,80

0

4

7,80

0 10

0.0%

74

,160

G

arie

p 10

,000

-

- 1

0,00

0 10

,000

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1

0,00

0

2,8

00

28.0

%

8

64

Ga-

sego

nyan

a

2

30

- -

230

2

30

- -

230

-

0.

0%

- G

eorg

e 3,

172

- -

3,17

2

3,1

72

- -

3,

172

1

,760

55

.0%

216

G

ovan

Mbe

ki

2

,492

-

- 2,

492

2,49

2 -

-

2,49

2

7

55

30.0

%

5,88

8 G

reat

Kei

-

- -

- -

- -

- -

0.0%

5,0

00

Gre

ater

Giy

ani

7

,150

-

- 7

,150

7,1

50

- -

7

,150

4

,413

62

.0%

- G

reat

er K

okst

ad

10,

596

- -

1

0,59

6

10,5

96

--

10,5

96

10,5

96

100.

0%

-

Gre

ater

Let

aba

4

,453

-

- 4,

453

4

,453

-

-

4,4

53

- 0.

0%

-

Gre

ater

Tub

atse

1

1,72

6 -

- 1

1,72

6 11

,726

-

-

11

,726

-

0.0%

-


ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 march 2010

197

NA

ME

OF

MU

NIC

IPA

LITY

GR

AN

T A

LLO

CAT

ION

TRA

NSF

ERSP

ENT

2008

/09

Div

isio

n of

Rev

enue

Act

Rol

l Ove

rsA

djus

tmen

tsTo

tal

Avai

labl

e

Act

ual

Tran

sfer

Fund

s

With

held

Re-

allo

catio

ns b

y

Nat

iona

l Tre

asur

y

or N

atio

nal

Dep

artm

ent

Am

ount

rece

ived

by m

unic

ipal

ity

Am

ount

spe

nt

by m

unic

ipal

ity

% o

f av

aila

ble

fund

s sp

ent b

y

mun

icip

ality

Div

isio

n of

Rev

enue

Act

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

%R

’000

Gre

ater

Tza

neen

20

,829

-

- 20

,829

20

,829

-

-

20,

829

14,

335

69.0

%

1,6

01

Han

tam

-

- -

--

--

--

0.0%

133

Ik

wez

i

8,0

00

- -

8

,000

8

,000

-

-

8,0

00

100

1.0%

- In

quza

Hill

20

,000

-

-

20,0

00

20

,000

-

- 2

0,00

0

8

,718

44

.0%

- In

xuba

Yet

hem

ba

3,00

0 -

-

3

,000

3,

000

--

3

,000

3,0

00

100.

0%

4,0

00

Kam

iesb

erg

- -

--

--

--

-0.

0%71

0 K

getle

ngriv

ier

--

- -

--

--

-0.

0%5,

000

Kha

ra H

ais

708

-

- 70

870

8-

-70

870

810

0.0%

1,28

0 K

ing

saba

ta D

alin

dyeb

o

16,

000

- -

1

6,00

0

1

6,00

0 -

-

16,

000

-0.

0%

6,

800

Kny

sna

1

,108

-

-

1,

108

1

,108

-

-

1,

108

80

8 73

.0%

240

K

ouga

6,

800

- -

6

,800

6

,800

-

-

6,80

0

3,8

84

57.0

%

6,0

00

Kw

aDuk

uza

4

,000

-

-

4,0

00

4

,000

-

-

4,0

00

- 0.

0%

2,4

00

Lek

wa

-

-

- -

--

--

-0.

0%

1,6

60

Lek

wa-

Teem

ane

1,

927

- -

1,92

7 1,

927

- -

1,

927

1

,082

56

.0%

868

L

epel

le-N

kum

pi

4

,800

-

-

4,8

00

4

,800

-

-4,

800

4

,800

10

0.0%

-

Lep

hala

le

4

,600

-

-

4,

600

4

,600

-

-

4

,600

1,3

74

30.0

%-

Let

sem

eng

- -

- -

--

--

-0.

0% 1

,800

M

adib

eng

6

,154

-

-

6,

154

-

6,

154

--

-0.

0%

4,0

00

Mak

ana

6

,000

-

-

6,

000

6

,000

-

-

6,0

00

5,7

50

96.0

%

10,0

00

Mak

hado

-

- -

-

-

- -

- -

0.0%

943

M

alet

swai

3,0

00

- -

3,00

0 3,

000

- -

3,00

0

3

,000

10

0.0%

13

,600

M

anga

ung

49

,012

-

-

49,0

12

49,0

12

- -

49,

012

49,0

12

100.

0%

13,2

68

Man

tsop

a

4

68

- -

4

68

-

46

8 -

- -

0.0%

- M

aqua

ssi H

ills

- -

-

-

- -

- -

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0%

3

16

Mat

atie

le

- -

-

-

- -

- -

-0.

0%

3,2

24

Mat

ihab

eng

460

-

- 46

0 4

60

--

460

-0.

0%-

Mat

zika

ma

3,03

2 -

-

3,0

32

3

,032

-

-

3,03

2

1

,760

58

.0%

4

,500

M

auti-

a-ph

ofun

g 1

5,51

5 -

-

15,5

15

15,

515

- -

15

,515

5,

400

35.0

%-

Mbh

ashe

10,0

00

- -

1

0,00

0

10,0

00

- -

1

0,00

0

7

,900

79

.0%

- M

bom

bela

43

,614

-

-

43,6

14

43

,614

-

-

43

,614

11,0

50

25.0

% 2

9,50

0 M

eraf

ong

City

1,9

00

- -

1,90

0

1,9

00

--

1

,900

-

0.0%

3

,000

M

etsi

mah

olo

11

,500

-

-

11,5

00

11

,500

-

- 1

1,50

0

30

0.0%

4

,000

M

hlon

tlo

50

,000

-

-

50,0

00

50

,000

-

-

50

,000

38,

235

76.0

%-

Mkh

ondo

-

- -

--

--

--

0.0%

2

,000

M

odim

olle

-

- -

--

--

--

0.0%

4

,012

M

ogal

akw

ena

10,

359

- -

1

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9 10

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-

-

10,3

59

10,3

59

100.

0%

1

71

Moh

okar

e

2,9

49

- -

2,94

9

2,9

49

- -

2

,949

- 0.

0%

-

Mol

emol

e

1,37

1 -

-

1,

371

1

,371

-

-

1,

371

400

29.0

%

-

Moo

kgop

ong

8

,000

-

-

8,

000

4

,720

3,2

80

-

4,

720

-

0.

0%

-

Moq

haka

- -

-

-

-

- -

-

-

0.0%

5

52

Mos

sel B

ay

3

,240

-

-

3,

240

3,2

40

- -

3,2

40

546

17.0

%

-

Msu

kalig

wa

2

,300

-

-

2,

300

2,3

00

- -

2,3

00

1

,566

68

.0%

3

,720

M

thon

jane

ni14

,860

- -

14,8

60-

14,8

60-

--

0.0%

- M

usin

a

94

3 -

-

94

3

60

0

34

3 -

6

00

- 0.

0%

2,7

20


198

NA

ME

OF

MU

NIC

IPA

LITY

GR

AN

T A

LLO

CAT

ION

TRA

NSF

ERSP

ENT

2008

/09

Div

isio

n of

Rev

enue

Act

Rol

l Ove

rsA

djus

tmen

tsTo

tal

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labl

e

Act

ual

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sfer

Fund

s

With

held

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ns b

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iona

l Tre

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y

or N

atio

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artm

ent

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ount

rece

ived

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ipal

ity

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ount

spe

nt

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ipal

ity

% o

f av

aila

ble

fund

s sp

ent b

y

mun

icip

ality

Div

isio

n of

Rev

enue

Act

R’0

00R

’000

R’0

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00%

R’0

00R

’000

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’000

Nal

a

- -

-

-

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-

-

- 0.

0%

2

,000

N

aled

i

1,82

0 -

-

1,8

20

1,

820

--

1,8

20

1

,820

10

0.0%

- N

aled

i 10

,000

-

- 1

0,00

0 10

,000

-

-

10

,000

3,8

65

39.0

%

-

Nam

a Kh

oi

20

,130

-

-

20,

130

20,

130

--

20,

130

9

,081

45

.0%

-

N

dlam

be

5

,000

-

-

5,0

00

5

,000

-

-

5,0

00

4

,715

94

.0%

10

,000

N

elso

n M

ande

la

-

- -

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-

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--

0.0%

30

,790

N

gwat

he

6

,370

-

-

6,3

70

6

,370

-

-

6,3

70

2,14

5 34

.0%

- N

kom

azi

13

,449

-

-

13,4

49

13

,449

-

- 1

3,44

9

13,

449

100.

0%-

Nok

eng

tsa

Taem

ane

11

,552

-

-11

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4,7

12

6,84

0 -

4

,712

-

0.0%

8

,385

N

quth

u -

- -

-

-

--

- -

0.0%

280

N

tam

bana

na

17

,800

-

-

17,

800

17

,800

-

-

17,

800

17,

800

100.

0%-

Oud

thoo

rn

2

,600

-

-

2,6

00

2,

600

--

2,

600

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0%-

Ove

rstra

nd

1

,921

-

-

1,9

21

1

,921

-

-

1,9

21

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0%-

Pho

kwan

e

2,44

3 -

-

2,

443

2

,443

-

-

2,4

43

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0%-

Phu

mel

ela

270

-

-

2

70

270

-

-

270

2

70

100.

0%

1,2

00

Pol

okw

ane

37

,607

-

- 37

,607

37,6

07

- -

37,

607

31,6

18

84.0

%

26,4

88

Rus

tenb

urg

31

,340

-

-

31,

340

31,

340

- -

3

1,34

0 -

0.0%

24

,000

S

alda

nha

Bay

2

,000

-

-

2,

000

2

,000

-

-

2,00

0 -

0.0%

- S

akhi

sizw

e

-

- -

-

-

--

-

-

0.0%

3

,000

S

iyan

cum

a 1

,212

-

-

1,

212

1,2

12

--

1,2

12

992

82.0

%-

Ste

llenb

osch

2,0

00

- -

2,00

0

2,0

00

- -

2,0

00

- 0.

0%-

Ste

ve T

shw

ete

7

,624

-

-

7,

624

7

,624

-

-

7,62

4

5,6

80

75.0

%

3,0

92

Sw

artla

nd

- -

-

-

-

-

-

-

-0.

0%

2

,500

S

wlle

ndam

600

-

-

6

00

600

-

-

600

9

6 16

.0%

- T

haba

zim

bi

1

,000

-

-

1,0

00

1

,000

-

-

1

,000

-

0.0%

2

,650

T

heew

ater

sklo

of

2,3

37

- -

2,33

7

2,3

37

-

-

2,3

37

2,

633

113.

0%-

The

mbi

sile

1,4

58

- -

1,4

58

1

,458

-

-

1

,458

988

68

.0%

- T

hula

mel

a

7,2

30

- -

7,23

0

7,2

30

-

-

7,2

30

-0.

0%

4,6

00

Tlo

kwe

1

,000

-

-

1,

000

1

,000

-

-

1

,000

-

0.0%

10

,000

T

okol

ogo

92

-

-

92

9

2 -

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9

2

32

35.0

%

-

Tso

lwan

a

7,5

00

--

7,50

0

7,5

00

-

-

7,50

0

1,00

0 13

.0%

- U

bunt

u

2,0

12

- -

2,01

2

2,0

12

-

-

2,0

12

1,7

18

85.0

%-

Ulu

ndi

5

,014

-

-

5,0

14

5

,014

-

-

5,0

14

4,7

19

94.0

%-

Um

hlat

huze

3,9

50

- -

3,95

0

3,9

50

-

-

3,9

50

-

0.

0%

1,2

00

Um

jindi

8,9

60

- -

8,96

0

8,9

60

-

-

8,9

60

3,5

93

40.0

%

6,0

00

Um

ngen

i

9,4

39

- -

9,43

9

9,4

39

-

-

9,4

39

2,

307

24.0

%-

Um

sobo

mvu

2

80

- -

28

0

2

80

-

-

280

-

0.0%

- U

mts

hezi

-

- -

--

--

--

0.0%

1

,200

ANN

EXU

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1A (C

ON

TIN

UED

)

STAT

EMEN

T O

F C

ON

DIT

ION

AL G

RAN

TS P

AID

TO

MU

NIC

IPAL

ITIE

S



199

NA

ME

OF

MU

NIC

IPA

LITY

GR

AN

T A

LLO

CAT

ION

TRA

NSF

ERSP

ENT

2008

/09

Div

isio

n of

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enue

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l Ove

rsA

djus

tmen

tsTo

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held

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l Tre

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atio

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ent

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rece

ived

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ipal

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spe

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R’0

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’000

Witz

enbe

rg

2,2

40

--

2,24

0

2,2

40

--

2,24

0

1,

409

63.0

%-

Sub

Tota

l 93

2,95

7-

-93

2,95

789

9,55

333

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-89

9,55

356

7,60

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5,63

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Elec

tric

ity D

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City

of T

shw

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30,0

0030

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30,0

00-

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-0.

0%-

City

of J

ohan

nesb

urg

21,9

0021

,900

21,9

00-

-21

,900

15,9

1973

.0%

-Ek

huru

leni

3,00

03,

000

3,00

0-

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000

2,20

073

.0%

-N

elso

n M

ande

la B

ay30

,000

30,0

0030

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--

30,0

001,

610

5.0%

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ity o

f Cap

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4,00

04,

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4,00

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1,85

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8,00

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8,00

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000

2,70

634

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-M

bom

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12,1

0012

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12,1

00-

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1,25

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anga

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202

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203

ANNEXURE 1E

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP

2009/10 2008/09

R’000 R’000

Received in kindBP Year End Function - 100Petro SA Year End Function - 300Eskom Year End Function - 50Great Basin Gold Year End Function - 25Merafe Resources Year End Function - 100Xstrata Youth Day Event 70 -Sekoko Mining (Pty) Ltd Soccer Kit 2 -

TOTAL 72 575


204

ANNEXURE 1F

STATEMENT OF AID ASSISTANCE RECEIVED

NAME OF DONOR PURPOSE OPENING CLOSING

BALANCE REVENUE EXPENDITURE BALANCE

R’000 R’000 R’000 R’000

Received in cash Danish Government Designated National Authority 308 - 4 304

Danish Government Cabaree (REFSO) Support 73 - - 73

Norwegian Government Electricity Sector Policy Capacity 104 - 104 -

Norwegian Government Petroleum Sector Policy Capacity 5,427 - 5,741 (314)

TOTAL 5,912 - 5,849 63



205

ANNEXURE 1G

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP

2009/10 2008/09

R’000 R’000

Paid in cashDonation made to Mrs M Mashinini - 100Donation made to Medical Research Council - 385

Subtotal - 485

Made in kind

Donations made to Imbasa Primary School4 Printers and 1 Typewriter - 4

Donations made to Nkojane Combined School20 Chairs - 925 Filing cabinets - 219 Desks - 24Donation: Venues and Facilities for Mr Rocha Farewell 11 -

Donations made to institutions under the auspices of the Department of Education (Western Cape, North West and Free State)Furniture and Office Equipment 1,039

Donations made to Unemployed Against Poverty Organization in Mbizana (Computers) 2

Subtotal 1,052 58

Remissions, refunds, and payments made as an act of gracePayments made as an act of grace to households 25 100Payments made as an act of grace 51

Subtotal 76 100

TOTAL 1,128 643


206

AN

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208

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year

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-


210

ANNEXURE 3B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2010

Nature of Liability

Liabilities incurred during

the year

Liabilities paid/cancelled/reduced

during the year

Liabilities recoverable

(Provide details hereunder)

Opening Closing

Balance Balance

1 April 2009 31 March 2010

R’000 R’000 R’000 R’000 R’000

Claims against the department

Claims against the department 100,985 198,976 - - 299,961

Subtotal 100,985 198,976 - - 299,221

Other

Simrac contracts 19,580 7,797 7,407 - 19,970

Subtotal 19,580 7,797 7,407 - 19,970

TOTAL 120,565 206,773 7,407 - 319,931



211

ANNEXURE 4

CLAIMS RECOVERABLE

Government Entity

Confirmed balance outstanding

Unconfirmed balance outstanding Total

31/03/2010 31/03/2009 31/03/2010 31/03/2009 31/03/2010 31/03/2009R’000 R’000 R’000 R’000 R’000 R’000

Department Department of Housing 12 - 12 Department of Education - 12 12 Department of Agriculture - 44 44 Department of Public Service and Administration 8 - 8Department of Trade and Industry - 2 2Kwazulu Natal Economic Development - 23 23Northern Cape Department of Health - 29 29Government Communications 546 - - 546 - Department of Water Affairs - - 1 - 1 - Department of Health:Gauteng - - 17 - 17 South African Police Services - - 10 - 10 -Department of Health and Social Development: Limpopo 8 8

TOTAL 546 20 36 110 582 130


212

ANNEXURE 5

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITYConfirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2010 31/03/2009 31/03/2010 31/03/2009 31/03/2010 31/03/2009

R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current Gauteng Provincial Government - 898 - 276 - 1,174 Department of Justice - - 788 72 788 72 Department of Public Works 20,488 - 5,298 2,455 25,786 2,455 Department of Public Service and Administration

- - 34 8 34 8

Department of Safety and Security - 642 - 3 - 645Parliament of the Republic of South Africa

- - 2 - 2 -

Western Cape Government motor Transport

- - 77 - 77 -

Office of the Premier KZN - 2,100 - 2,100 -

Office of the Premier Northern Cape - - 46 - 46 -

Total 20,488 1,540 8,345 2,814 28,833 4,354



213

ANNEXURE 6

INVENTORY

Note Quantity 2009/10

Inventory R’000Opening balance 91,105 856

Add/(Less): Adjustments to prior year balance - -

Add: Additions/Purchases - Cash 372,262 8,940

Add: Additions - Non-cash 7,311 -

(Less): Disposals - -

(Less): Issues (372, 434) (9,172)

Add/(Less): Adjustments - -

Closing Balance before Weighted Average Variance 98,244 624Add/Less: Weighted Average Price Variance - 475



214

HUMANRESOURCE

MANAGEMENT

216

HU

MA

N R

ESO

UR

CE

MA

NA

GEM

ENT

HR

OVE

RSI

GH

T -

APR

IL 2

009

to M

AR

CH

201

0 -

Dep

artm

ent o

f Min

eral

s an

d En

ergy

TAB

LE 1

.1 P

erso

nnel

cos

ts p

er P

rogr

amm

e

Prog

ram

me

Tota

l Vot

ed

Expe

nditu

re

(R'0

00)

Com

pens

atio

n of

Em

ploy

ees

Expe

nditu

re

(R'0

00)

Trai

ning

Ex

pend

iture

(R

'000

)

Prof

essi

onal

and

Sp

ecia

l Ser

vice

s (R

'000

)

Com

pens

atio

n of

Em

ploy

ees

as

perc

ent o

f Tot

al

Expe

nditu

re

Aver

age

Com

pens

atio

n of

Em

ploy

ees

Cos

t pe

r Em

ploy

ee

(R'0

00)

Empl

oym

ent

Adm

inis

tratio

n 24

9,25

310

9,78

53,

712

13,8

8144

.0%

225

489

Asso

ciat

ed S

ervi

ces

3,54

1,60

70

00

0.0%

00

Elec

trici

ty a

nd N

ucle

ar

334,

070

37,4

3613

56,

921

12.0

%33

711

1H

ydro

carb

ons

& En

ergy

Pla

n 56

,925

40,3

1118

1,90

270

.8%

278

145

Min

eral

Pol

icy

and

Prom

otio

n 73

,724

30,4

5559

2,83

541

.3%

285

107

Min

eral

Reg

ulat

ion

150,

596

91,2

9239

313

,165

60.6

%24

537

2Pr

omot

ion

of M

ine

Hea

lth &

Saf

ety

138,

542

94,0

463,

009

6,62

867

.9%

285

330

TOTA

L as

per

Fin

anci

al S

yste

ms

(BA

S)

4,54

4,71

640

3,32

57,

326

45,3

328.

9%26

01,

554

TAB

LE 1

.2 P

erso

nnel

cos

ts b

y sa

lary

ban

d

Sala

ry B

ands

Com

pens

atio

n of

Em

ploy

ees

Cos

t (R

'000

)

Perc

enta

ge o

f To

tal P

erso

nnel

C

ost f

or

Dep

artm

ent

Aver

age

Com

pens

atio

n C

ost p

er

Empl

oyee

(R)

Tota

l Per

sonn

el

Cos

t for

Dep

artm

ent

incl

udin

g G

oods

and

Tr

ansf

ers

(R'0

00)

Num

ber o

f Em

ploy

ees

Low

er s

kille

d (L

evel

s 1-

2)37

30.

10

426,

299

0Sk

illed

(Lev

els

3-5)

28

,173

6.6

116,

417

426,

299

242

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

61

,396

14.4

182,

184

426,

299

337

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

192,

249

45.1

363,

420

426,

299

529

Seni

or m

anag

emen

t (Le

vels

13-

16)

77,6

7518

.268

7,38

942

6,29

911

3C

ontra

ct (L

evel

s 1-

2)12

00

426,

299

0C

ontra

ct (L

evel

s 3-

5)

3,95

40.

991

,953

426,

299

43C

ontra

ct (L

evel

s 6-

8)

5,80

11.

417

5,78

842

6,29

933

Con

tract

(Lev

els

9-12

) 10

,977

2.6

238,

630

426,

299

46C

ontra

ct (L

evel

s 13

-16)

5,

302

1.2

757,

429

426,

299

7Pe

riodi

cal r

emun

erat

ion

263

0.1

3,05

842

6,29

986

Abno

rmal

app

oint

men

t 18

,037

4.2

39,0

4142

6,29

946

2

TOTA

L40

4,21

294

.821

,296

742

6,29

91,

898

*Tot

al n

umbe

r of e

mpl

oyee

s re

mun

erat

ed fo

r the

per

iod

incl

udes

em

ploy

ees

term

inat

ed a

nd re

crui

ted.

HUMAN RESOURCE MANAGEMENT - SECTION 5

217

TAB

LE 1

.3 S

alar

ies,

ove

rtim

e, h

ome

owne

r’s a

llow

ance

and

med

ical

aid

by

Prog

ram

me

Prog

ram

me

Sala

ries

(R'0

00)

Sala

ries

as %

of

Pers

onne

l Cos

tO

vert

ime

(R'0

00)

Ove

rtim

e as

%

of P

erso

nnel

C

ost

HO

A (R

'000

)H

OA

as %

of

Pers

onne

l Cos

tM

edic

al

Ass

. (R

'000

)

Med

ical

Ass

. as

%

of P

erso

nnel

Cos

tTo

tal P

erso

nnel

C

ost p

er

Prog

ram

me

(R'0

00)

Ele

ctric

ity &

Nuc

lear

**

22,0

0758

.814

0.0

757

2.0

1,00

32.

737

,436

Hyd

roca

rbon

s &

Ener

gy P

lann

ing*

*26

,956

66.9

10.

01,

038

2.6

1,22

13.

040

,311

Min

eral

Pol

icy

& Pr

omot

ion

20,2

4566

.511

10.

489

22.

91,

034

3.4

30,4

55M

iner

al R

egul

atio

n

58,4

6664

.01,

134

1.2

1,60

31.

83,

539

3.9

91,2

92Pr

ogra

mm

e 1

Adm

in**

69,3

1763

.12,

400

2.2

2,17

52.

04,

111

3.7

109,

785

Prom

otio

n of

Min

e Sa

fety

& H

ealth

62,5

3866

.527

0.0

1,47

71.

62,

395

2.5

94,0

46

TOTA

L25

9,52

964

.33,

687

0.9

7,94

22.

013

,303

3.3

403,

325

*HO

A: H

ome

owne

r’s a

llow

ance

TAB

LE 1

.4 S

alar

ies,

ove

rtim

e, h

ome

owne

r’s a

llow

ance

and

med

ical

aid

by

sala

ry b

and

Sala

ry b

ands

Sala

ries

(R'0

00)

Sala

ries

as %

of

Pers

onne

l C

ost

Ove

rtim

e (R

'000

)O

vert

ime

as %

of

Per

sonn

el

Cos

t

HO

A (R

'000

)H

OA

as %

of

Pers

onne

l C

ost

Med

ical

A

ss.

(R'0

00)

Med

ical

Ass

. as

%

of P

erso

nnel

Cos

tTo

tal P

erso

nnel

C

ost p

er S

alar

y B

and

(R'0

00)

Low

er s

kille

d (L

evel

s 1-

2)25

066

.81

0.3

246.

452

13.9

374

Skille

d (L

evel

s 3-

5)

19,0

1166

.371

12.

51,

191

4.2

2,48

88.

728

,672

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

43

,782

69.6

1,19

21.

91,

563

2.5

3,61

15.

762

,866

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

145,

459

70.5

1,23

80.

62,

598

1.3

5,37

12.

620

6,33

1Se

nior

man

agem

ent (

Leve

ls 1

3-16

) 62

,142

76.0

70

2,28

62.

81,

244

1.5

81,7

45C

ontra

ct (L

evel

s 1-

2)9

75.0

18.

30

00

012

Con

tract

(Lev

els

3-5)

2,

777

70.0

324

8.2

130

3.3

145

3.7

3,96

9C

ontra

ct (L

evel

s 6-

8)

4,51

276

.519

63.

385

1.4

135

2.3

5,89

5C

ontra

ct (L

evel

s 9-

12)

9,33

175

.66

044

0.4

840.

712

,338

Con

tract

(Lev

els

13-1

6)

4,55

584

.10

025

0.5

450.

85,

419

Perio

dica

l Rem

uner

atio

n 0

00

00

00

052

9Ab

norm

al A

ppoi

ntm

ent

16,4

8790

.80

00

00

018

,149

TOTA

L30

8,31

572

.33,

676

0.9

7,94

61.

913

,175

3.1

426,

299

218

TAB

LE 2

.1 F

illed

pos

ts a

nd v

acan

cies

by

Prog

ram

me

at e

nd o

f per

iod

Prog

ram

me

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fi

lled

Vaca

ncy

Rat

eN

umbe

r of P

osts

Fi

lled

Add

ition

al to

the

Esta

blis

hmen

tEl

ectri

city

& N

ucle

ar**

old,

Per

man

ent

111

9514

.48

Hyd

roca

rbon

s &

Ener

gy P

lann

ing*

*old

, Per

man

ent

145

122

15.9

1M

iner

al P

olic

y &

Prom

otio

n, P

erm

anen

t 10

790

15.9

1M

iner

al R

egul

atio

n, P

erm

anen

t 37

233

310

.57

Prog

ram

me

1 Ad

min

**ol

d, P

erm

anen

t 48

843

311

.384

Prog

ram

me

1 Ad

min

**ol

d, T

empo

rary

1

10

0Pr

omot

ion

of M

ine

Safe

ty &

Hea

lth, P

erm

anen

t 32

927

516

.411

Prom

otio

n of

Min

e Sa

fety

& H

ealth

, Tem

pora

ry

11

00

TOTA

L1,

554

1,35

013

.111

2

TAB

LE 2

.2 F

illed

pos

ts a

nd v

acan

cies

by

sala

ry b

and

at e

nd o

f per

iod

Sala

ry B

and

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fi

lled

Vaca

ncy

Rat

eN

umbe

r of P

osts

Fill

ed

Add

ition

al to

the

Esta

blis

hmen

tLo

wer

ski

lled

(Lev

els

1-2)

, Per

man

ent

42

501

Skille

d (L

evel

s 3-

5), P

erm

anen

t 27

624

212

.37

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

, Per

man

ent

378

337

10.8

14H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

), Pe

rman

ent

638

527

17.4

10H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

), Te

mpo

rary

2

20

0Se

nior

man

agem

ent (

Leve

ls 1

3-16

), Pe

rman

ent

127

111

12.6

3C

ontra

ct (L

evel

s 3-

5), P

erm

anen

t 43

430

43C

ontra

ct (L

evel

s 6-

8), P

erm

anen

t 33

330

29C

ontra

ct (L

evel

s 9-

12),

Perm

anen

t 46

460

3C

ontra

ct (L

evel

s 13

-16)

, Per

man

ent

77

02

TOTA

L1,

554

1,35

013

.111

2

TAB

LE 2

.3 F

illed

pos

ts a

nd v

acan

cies

by

criti

cal o

ccup

atio

n at

end

of p

erio

d

Crit

ical

Occ

upat

ions

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fi

lled

Vaca

ncy

Rat

eN

umbe

r of P

osts

Fi

lled

Add

ition

al to

the

Esta

blis

hmen

tAd

min

istra

tive

rela

ted

pers

onne

l, Pe

rman

ent

152

131

13.8

13Bi

olog

ists

, bot

anis

ts, z

oolo

gist

s &

rela

ted

prof

essi

onal

s, P

erm

anen

t 79

6912

.71

Car

togr

aphe

rs a

nd s

urve

yors

, Per

man

ent

32

33.3

0C

lean

ers

in o

ffice

s, w

orks

hops

, hos

pita

ls, e

tc, P

erm

anen

t 16

160

0C

lient

info

rmat

ion

cler

ks (s

witc

hboa

rd, r

ecep

tion,

info

rmat

ion

cler

ks),

Perm

anen

t 18

1422

.23


219

Crit

ical

Occ

upat

ion

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fi

lled

Vaca

ncy

Rat

eN

umbe

r of P

osts

Fi

lled

Add

ition

al to

the

Esta

blis

hmen

tC

omm

unic

atio

n an

d in

form

atio

n re

late

d pe

rson

nel,

Perm

anen

t 13

127.

71

Econ

omis

ts, P

erm

anen

t 46

4110

.90

Engi

neer

ing

scie

nces

rela

ted

pers

onne

l, Pe

rman

ent

52

60.0

0Fi

nanc

e &

econ

omic

s re

late

d pe

rson

nel,

Perm

anen

t 9

90

0Fi

nanc

ial &

rela

ted

prof

essi

onal

s, P

erm

anen

t 23

230

4Fi

nanc

ial c

lerk

s &

cred

it co

ntro

llers

, Per

man

ent

2725

7.4

10Fo

od s

ervi

ces

aide

s &

wai

ters

, Per

man

ent

63

50.0

0H

ead

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er, P

erm

anen

t 2

20

0H

uman

reso

urce

s &

orga

nisa

tion

deve

lopm

ent &

rela

ted

prof

essi

onal

s, P

erm

anen

t 47

438.

52

Hum

an re

sour

ces

cler

ks, P

erm

anen

t 25

238.

014

Hum

an re

sour

ces

rela

ted

pers

onne

l, Pe

rman

ent

11

00

Info

rmat

ion

tech

nolo

gy re

late

d pe

rson

nel,

Perm

anen

t 10

730

.00

Lang

uage

pra

ctiti

oner

s, in

terp

rete

rs &

oth

er c

omm

unic

atio

n pe

rson

nel,

Perm

anen

t 5

50

0Le

gal r

elat

ed p

erso

nnel

, Per

man

ent

98

11.1

0Li

brar

ians

& re

late

d pr

ofes

sion

als,

Per

man

ent

33

00

Libr

ary,

mai

l & re

late

d cl

erks

, Per

man

ent

6459

7.8

5Lo

gist

ical

sup

port

pers

onne

l, Pe

rman

ent

1514

6.7

0M

ater

ial-r

ecor

ding

& tr

ansp

ort c

lerk

s, P

erm

anen

t 38

357.

92

Mes

seng

ers,

por

ters

& d

eliv

ery

pers

onne

l, Pe

rman

ent

1212

01

Nat

ural

sci

ence

s re

late

d pe

rson

nel,

Perm

anen

t 17

114

217

.07

Oth

er a

dmin

istra

tive

& re

late

d cl

erks

and

org

anis

ers,

Per

man

ent

104

9310

.64

Oth

er a

dmin

istra

tive

polic

y &

rela

ted

offic

ers,

Per

man

ent

7059

15.7

1O

ther

info

rmat

ion

tech

nolo

gy p

erso

nnel

, Per

man

ent

2622

15.4

5O

ther

mac

hine

ope

rato

rs, P

erm

anen

t 2

20

0O

ther

occ

upat

ions

, Per

man

ent

22

00

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces,

Per

man

ent

1312

7.7

0Sa

fety

, hea

lth a

nd q

ualit

y in

spec

tors

, Per

man

ent

206

165

19.9

8Sa

fety

. hea

lth a

nd q

ualit

y in

spec

tors

, Tem

pora

ry

11

00

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cl

erks

, Per

man

ent

119

105

11.8

3Se

curit

y of

ficer

s, P

erm

anen

t 73

695.

525

Seni

or m

anag

ers,

Per

man

ent

119

102

14.3

3Se

nior

man

ager

s, T

empo

rary

1

10

0Tr

ade/

indu

stry

adv

iser

s &

othe

r rel

ated

pro

fess

iona

ls, P

erm

anen

t 19

1615

.80

TOTA

L1,

554

1,35

013

.111

2

220

TAB

LE 3

.1 J

ob e

valu

atio

n

Sala

ry B

and

Num

ber o

f Po

sts

Num

ber o

f Job

s Ev

alua

ted

% o

f Pos

ts

Eval

uate

dN

umbe

r of

Post

s U

pgra

ded

% o

f Upg

rade

d Po

sts

Eval

uate

dN

umbe

r of P

osts

D

owng

rade

d%

of D

owng

rade

d Po

sts

Eval

uate

dLo

wer

ski

lled

(Lev

els

1-2)

4

00

00

00

Con

tract

(Lev

els

3-5)

43

00

00

00

Con

tract

(Lev

els

6-8)

33

00

00

00

Con

tract

(Lev

els

9-12

) 46

00

20

00

Con

tract

(Ban

d A)

2

00

00

00

Con

tract

(Ban

d B)

4

00

10

00

Con

tract

(Ban

d C

) 1

00

00

00

Skille

d (L

evel

s 3-

5)

276

00

10

00

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

37

81

0.3

110

0.0

00

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

640

71.

13

42.9

228

.6Se

nior

Man

agem

ent S

ervi

ce B

and

A 90

00

10

00

Seni

or M

anag

emen

t Ser

vice

Ban

d B

250

00

00

0Se

nior

Man

agem

ent S

ervi

ce B

and

C

70

00

00

0Se

nior

Man

agem

ent S

ervi

ce B

and

D

52

40.0

00

00

TOTA

L1,

554

100.

69

902

20

TAB

LE 3

.2 P

rofil

e of

em

ploy

ees

who

se p

ositi

ons

wer

e up

grad

ed d

ue to

thei

r pos

ts b

eing

upg

rade

d

Ben

efic

iarie

sA

fric

anA

sian

Col

oure

dW

hite

Tota

lFe

mal

e 31

00

233

Mal

e 14

00

014

TOTA

L 45

00

247

Empl

oyee

s w

ith a

dis

abilit

y 0

00

00

TAB

LE 3

.3 E

mpl

oyee

s w

hose

sal

ary

leve

ls e

xcee

d th

e gr

ades

det

erm

ined

by

job

eval

uatio

n [it

o PS

R 1

.V.C

.3]

Occ

upat

ion

Num

ber o

f Em

ploy

ees

Job

Eval

uatio

n Le

vel

Rem

uner

atio

n Le

vel

Rea

son

for

Dev

iatio

nN

o of

Em

ploy

ees

in D

ept

Tota

l 0

0

0 0

0 Pe

rcen

tage

of t

otal

em

ploy

men

t 0

0 0

0 0

TOTA

L 0

0 0

0 0


221

TAB

LE 3

.4 P

rofil

e of

em

ploy

ees

who

se s

alar

y le

vels

exc

eede

d th

e gr

ades

det

erm

ined

by

job

eval

uatio

n [it

o PS

R 1

.V.C

.3]

Ben

efic

iarie

sA

fric

anA

sian

Col

oure

dW

hite

Tota

lFe

mal

e 0

00

00

Mal

e 0

00

00

TOTA

L 0

00

00

Empl

oyee

s w

ith a

dis

abilit

y 0

00

00

TAB

LE 4

.1 A

nnua

l tur

nove

r rat

es b

y sa

lary

ban

d

Sala

ry B

and

Empl

oym

ent a

t Beg

inni

ng

of P

erio

d (A

pril

2009

)A

ppoi

ntm

ents

Term

inat

ions

Turn

over

Rat

e

Skille

d (L

evel

s 3-

5), P

erm

anen

t 23

936

62.

5H

ighl

y sk

illed

prod

uctio

n (L

evel

s 6-

8), P

erm

anen

t 31

930

92.

8H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

), Pe

rman

ent

469

5136

7.7

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12),

Tem

pora

ry

11

110

0.0

Seni

or M

anag

emen

t Ser

vice

Ban

d A,

Per

man

ent

725

56.

9Se

nior

Man

agem

ent S

ervi

ce B

and

A, T

empo

rary

0

10

0Se

nior

Man

agem

ent S

ervi

ce B

and

B, P

erm

anen

t 21

12

9.5

Seni

or M

anag

emen

t Ser

vice

Ban

d C

, Per

man

ent

50

120

.0Se

nior

Man

agem

ent S

ervi

ce B

and

D, P

erm

anen

t 2

10

0Se

nior

Man

agem

ent S

ervi

ce B

and

D, T

empo

rary

0

20

0O

ther

, Per

man

ent

10

00

Con

tract

(Lev

els

3-5)

, Per

man

ent

3516

38.

6C

ontra

ct (L

evel

s 6-

8), P

erm

anen

t 21

176

28.6

Con

tract

(Lev

els

9-12

), Pe

rman

ent

1935

526

.3C

ontra

ct (B

and

A), P

erm

anen

t 2

32

100.

0C

ontra

ct (B

and

B), P

erm

anen

t 3

33

100.

0C

ontra

ct (B

and

C),

Perm

anen

t 1

00

0

TOTA

L1,

210

202

796.

5

TAB

LE 4

.2 A

nnua

l tur

nove

r rat

es b

y cr

itica

l occ

upat

ion

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng o

f Pe

riod

(Apr

il 20

09)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Adm

inis

trativ

e re

late

d pe

rson

nel,

Perm

anen

t 10

611

1211

.3Ad

min

istra

tive

rela

ted

pers

onne

l, Te

mpo

rary

0

20

0Ag

ricul

ture

, ani

mal

, oce

anog

raph

,y fo

rest

ry &

oth

er s

cien

tific

pro

fess

iona

ls, P

erm

anen

t 5

01

20.0

Biol

ogis

ts, b

otan

ists

, zoo

logi

sts

& re

late

d pr

ofes

sion

als,

Per

man

ent

4710

24.

3C

arto

grap

hers

& s

urve

yors

, Per

man

ent

20

00

Cle

aner

s in

offi

ces,

wor

ksho

ps, h

ospi

tals

, etc

, Per

man

ent

191

00

222

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng o

f Pe

riod

(Apr

il 20

09)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Clie

nt in

form

cle

rks

(sw

itchb

oard

, rec

eptio

n, in

form

atio

n cl

erks

), Pe

rman

ent

143

321

.4C

omm

unic

atio

n &

info

rmat

ion

rela

ted

pers

onne

l, Pe

rman

ent

81

00

Dom

estic

bui

lder

s &

help

ers,

cle

aner

s, s

wee

pers

& la

undr

y pe

rson

nel,

Perm

anen

t 1

00

0Ec

onom

ists

, Per

man

ent

336

13

Engi

neer

ing

scie

nces

rela

ted

prof

essi

onal

s, P

erm

anen

t 4

00

0Fi

nanc

e &

econ

omic

s re

late

d pr

ofes

sion

als,

Per

man

ent

90

00

Fina

nce

rela

ted

prof

essi

onal

s, P

erm

anen

t 17

42

11.8

Fina

ncia

l cle

rks

& cr

edit

cont

rolle

rs, P

erm

anen

t 23

82

8.7

Food

ser

vice

s ai

des

& w

aite

rs, P

erm

anen

t 2

01

50.0

Gen

eral

lega

l adm

inis

tratio

n &

rela

ted

prof

essi

onal

s, P

erm

anen

t 4

00

0H

ead

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er, P

erm

anen

t 1

00

0H

uman

reso

urce

s &

orga

nisa

tion

deve

lopm

ent &

rela

ted

prof

essi

onal

s, P

erm

anen

t 34

04

11.8

Hum

an re

sour

ces

cler

ks, P

erm

anen

t 19

101

5.3

Hum

an re

sour

ces

rela

ted

pers

onne

l, Pe

rman

ent

100

110

Info

rmat

ion

tech

nolo

gy re

late

d pe

rson

nel,

Perm

anen

t 7

02

28.6

Lang

uage

pra

ctiti

oner

s, in

terp

rete

rs &

oth

er c

omm

unic

atio

n pe

rson

nel,

Perm

anen

t 6

00

0Le

gal r

elat

ed p

rofe

ssio

nals

, Per

man

ent

11

00

Libr

aria

ns &

rela

ted

prof

essi

onal

s, P

erm

anen

t 3

00

0Li

brar

y, m

ail &

rela

ted

cler

ks, P

erm

anen

t 56

93

5.4

Logi

stic

al s

uppo

rt pe

rson

nel,

Perm

anen

t 12

00

0M

ater

ial-r

ecor

ding

& tr

ansp

ort c

lerk

s, P

erm

anen

t 35

50

0M

esse

nger

s, p

orte

rs &

del

iver

ers,

Per

man

ent

111

00

Nat

ural

sci

ence

s re

late

d pe

rson

nel,

Perm

anen

t 13

416

96.

7O

ther

adm

inis

trativ

e &

rela

ted

cler

ks a

nd o

rgan

iser

s, P

erm

anen

t 91

82

2.2

Oth

er a

dmin

istra

tive,

pol

icy

& re

late

d of

ficer

s, P

erm

anen

t 64

101

1.6

Oth

er in

form

atio

n te

chno

logy

per

sonn

el, P

erm

anen

t 18

51

5.6

Oth

er m

achi

ne o

pera

tors

, Per

man

ent

20

00

Oth

er o

ccup

atio

ns, P

erm

anen

t 1

10

0R

ank:

Unk

now

n, P

erm

anen

t 1

00

0R

isk

man

agem

ent &

sec

urity

ser

vice

s pe

rson

nel,

Perm

anen

t 8

51

12.5

Safe

ty h

ealth

& q

ualit

y in

spec

tors

, Per

man

ent

127

5111

8.7

Safe

ty h

ealth

& q

ualit

y in

spec

tors

, Tem

pora

ry

11

110

0Se

cret

arie

s &

othe

r key

boar

d op

erat

ing

cler

ks, P

erm

anen

t 99

163

3Se

curit

y of

ficer

s, P

erm

anen

t 69

43

4.3

Seni

or m

anag

ers,

Per

man

ent

8610

1214

Seni

or m

anag

ers,

Tem

pora

ry

01

00

Trad

e/in

dust

ry a

dvis

ers

& ot

her r

elat

ed p

rofe

ssio

nals

, Per

man

ent

202

00

TOTA

L1,

210

202

796.

5


223

TAB

LE 4

.3 R

easo

ns fo

r em

ploy

ee tu

rnov

er ra

te

Term

inat

ion

Type

Num

ber

Perc

enta

ge o

f Tot

al

Res

igna

tions

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Tota

lTo

tal E

mpl

oym

ent

Dea

th, P

erm

anen

t 9

11.4

0.7

791,

210

Res

igna

tion,

Per

man

ent

4658

.23.

879

1,21

0R

esig

natio

n, T

empo

rary

1

1.3

0.1

791,

210

Expi

ry o

f con

tract

, Per

man

ent

810

.10.

779

1,21

0Tr

ansf

ers,

Per

man

ent

11.

30.

179

1,21

0D

isch

arge

d du

e to

ill-h

ealth

, Per

man

ent

22.

50.

279

1,21

0D

ism

issa

l for

mis

cond

uct,

Perm

anen

t 4

5.1

0.3

791,

210

Ret

irem

ent,

Perm

anen

t 8

10.1

0.7

791,

210

TOTA

L79

100

6.5

791,

210

Res

igna

tions

as

% o

f Em

ploy

men

t

6.5

TAB

LE 4

.3(a

) G

rant

ing

of e

mpl

oyee

Initi

ateg

sev

eran

ce p

acka

ges

Term

inat

ion

Type

No

of A

pplic

atio

ns

Rec

eive

dN

o of

app

licat

ions

re

ferr

ed to

the

MPS

A

No

of a

pplic

atio

ns

supp

orte

d by

the

MPS

A

No

of P

acka

ges

appr

oved

by

the

depa

rtm

ent

Low

er s

kille

d (L

evel

s 1-

2)0

00

0Sk

illed

(Lev

els

3-5)

0

00

0H

ighl

y sk

illed

prod

uctio

n (L

evel

s 6-

8)

00

00

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

00

00

Seni

or m

anag

emen

t (Le

vels

13-

16)

00

00

TOTA

L0

00

0

TAB

LE 4

.4 P

rom

otio

n by

cri

tical

occ

upat

ion

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng

of P

erio

d (A

pril

2009

)Pr

omot

ions

to

anot

her S

alar

y Le

vel

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch p

rogr

essi

ons

as

a %

of E

mpl

oym

ent

106

3331

.143

40.6

Agric

ultu

ral,

anim

al, o

cean

ogra

phy,

fore

stry

& o

ther

sci

ence

s pe

rson

nel

50

03

60.0

Biol

ogis

ts, b

otan

ists

, zoo

logi

sts

& re

late

d pr

ofes

sion

als

4710

21.3

1123

.4C

arto

grap

hers

& s

urve

yors

2

00

210

0.0

Cle

aner

s in

offi

ces,

wor

ksho

ps, h

ospi

tals

, etc

19

00

1473

.7C

lient

info

rmat

ion

cler

ks (s

witc

hboa

rd, r

ecep

tion,

info

rmat

ion

cler

ks)

141

7.1

1178

.6

224

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng

of P

erio

d (A

pril

2009

)Pr

omot

ions

to

anot

her S

alar

y Le

vel

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch p

rogr

essi

ons

as

a %

of E

mpl

oym

ent

Com

mun

icat

ion

& in

form

atio

n re

late

d pe

rson

nel

81

12.5

562

.5D

omes

tic b

uild

ers

& he

lper

s, c

lean

ers,

sw

eepe

rs &

laun

dry

pers

onne

l 1

00

00

Econ

omis

ts

339

27.3

721

.24

00

00

Fina

nce

& ec

onom

ics

rela

ted

pers

onne

l9

222

.21

11.1

Fina

ncel

& re

late

d pr

ofes

sion

als

176

35.3

529

.4Fi

nanc

ial c

lerk

s &

cred

it co

ntro

llers

23

313

.011

47.8

Food

ser

vice

s ai

des

& w

aite

rs

20

02

100.

0G

ener

al le

gal a

dmin

istra

tion

& re

late

d pr

ofes

sion

als

40

01

25H

ead

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er

11

100.

00

0H

uman

reso

urce

s &

orga

nisa

tion

deve

lopm

ent &

rela

ted

prof

essi

onal

s34

617

.629

85.3

Hum

an re

sour

ces

cler

ks

192

10.5

947

.4H

uman

reso

urce

s re

late

d pr

ofes

sion

als

100

01

10.0

Info

rmat

ion

tech

nolo

gy re

late

d pe

rson

nel

71

14.3

228

.6La

ngua

ge p

ract

ition

ers,

inte

rpre

ters

& o

ther

com

mun

icat

ion

pers

onne

l 6

00

350

.0Le

gal r

elat

ed p

rofe

ssio

nals

12

200.

01

100.

0Li

brar

ians

& re

late

d pr

ofes

sion

als

30

00

0Li

brar

y, m

ail &

rela

ted

cler

ks

560

030

53.6

Logi

stic

al s

uppo

rt pe

rson

nel

126

50.0

325

.0M

ater

ial-r

ecor

ding

& tr

ansp

ort c

lerk

s 35

514

.39

25.7

Mes

seng

ers,

por

ters

& d

eliv

erer

s 11

19.

16

54.5

Nat

ural

sci

ence

s re

late

d pr

ofes

sion

als

134

2820

.938

28.4

Oth

er a

dmin

istra

tive

& re

late

d cl

erks

& o

rgan

iser

s 91

99.

942

46.2

Oth

er a

dmin

istra

tive,

pol

icy

& re

late

d of

ficer

s 64

1015

.632

50.0

Oth

er in

form

atio

n te

chno

logy

per

sonn

el

184

22.2

633

.3O

ther

mac

hine

ope

rato

rs

20

01

50.0

Oth

er o

ccup

atio

ns

10

00

0R

ank:

Unk

now

n 1

00

00

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces

pers

onne

l8

00

225

.0Sa

fety

, hea

lth &

qua

lity

insp

ecto

rs

128

1612

.544

34.4

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cl

erks

99

88.

155

55.6

Secu

rity

offic

ers

693

4.3

2739

.1Se

nior

man

ager

s 86

1922

.133

38.4

Soci

al w

ork

& re

late

d pr

ofes

sion

als

01

00

0Tr

ade/

indu

stry

adv

iser

s &

othe

r rel

ated

pro

fess

iona

ls

203

15.0

735

.0

TOTA

L1,

210

190

15.7

496

41.0


225

TAB

LE 4

.5 P

rom

otio

ns b

y sa

lary

ban

d

Sala

ry B

and

Empl

oym

ent a

t B

egin

ning

of P

erio

d (A

pril

2009

)

Prom

otio

ns to

an

othe

r Sal

ary

Leve

l

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch p

rogr

essi

ons

as a

%

of E

mpl

oym

ent

239

156.

313

355

.6H

ighl

y sk

illed

prod

uctio

n (L

evel

s 6-

8), P

erm

anen

t 31

935

11.0

155

48.6

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12),

Perm

anen

t 46

911

324

.116

936

.0H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

), Te

mpo

rary

1

00

00

Seni

or m

anag

emen

t (Le

vels

13-

16),

Perm

anen

t 10

020

20.0

3535

.0O

ther

, Per

man

ent

10

00

0C

ontra

ct (L

evel

s 3-

5), P

erm

anen

t 35

12.

90

0C

ontra

ct (L

evel

s 6-

8), P

erm

anen

t 21

29.

53

14.3

Con

tract

(Lev

els

9-12

), Pe

rman

ent

191

5.3

15.

3C

ontra

ct (L

evel

s 13

-16)

, Per

man

ent

63

50.0

00

TOTA

L12

1019

015

.749

641

.0

TAB

LE 5

.1 T

otal

num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

per

occ

upat

ion

cate

gory

(SA

SCO

)

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Legi

slat

ors,

sen

ior o

ffici

als

& m

anag

ers,

Per

man

ent

533

157

1132

00

322

102

Legi

slat

ors,

sen

ior o

ffici

als

& m

anag

ers,

Tem

pora

ry

10

01

00

00

00

1Pr

ofes

sion

als,

Per

man

ent

100

02

102

1213

01

213

314

261

Tech

nici

ans

& as

soci

ated

pro

fess

iona

ls, P

erm

anen

t 23

64

224

273

180

21

183

1150

9Te

chni

cian

s &

asso

ciat

ed p

rofe

ssio

nals

, Tem

pora

ry

00

00

10

00

00

1C

lerk

s, P

erm

anen

t 82

40

862

225

150

240

3336

1Se

rvic

e &

sale

s w

orke

rs, P

erm

anen

t 50

20

524

240

024

181

Plan

t & m

achi

ne o

pera

tors

& a

ssem

bler

s, P

erm

anen

t 2

00

20

00

00

02

Elem

enta

ry o

ccup

atio

ns, P

erm

anen

t 9

20

110

190

019

030

Oth

er, P

erm

anen

t 0

01

11

00

00

02

TOTA

L53

315

655

410

461

018

363

161

1,35

0

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Empl

oyee

s w

ith d

isab

ilitie

s 3

00

33

10

01

07

226

TAB

LE 5

.2 T

otal

num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

per

occ

upat

ion

band

Occ

upat

ion

Ban

dM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Top

man

agem

ent,

Perm

anen

t 3

00

30

50

05

08

Seni

or m

anag

emen

t, Pe

rman

ent

494

255

1234

00

342

103

Prof

essi

onal

ly q

ualif

ied

and

expe

rienc

ed s

peci

alis

ts &

m

id-m

anag

emen

t, Pe

rman

ent

238

33

244

7218

92

119

219

527

Prof

essi

onal

ly q

ualif

ied

& ex

perie

nced

spe

cial

ists

&

mid

dle

man

agem

ent,

Tem

pora

ry

10

01

10

00

00

2

Skille

d te

chni

cal &

aca

dem

ical

ly q

ualif

ied

wor

kers

, jun

ior

man

agem

ent,

supe

rvis

ors

& fo

rem

en, P

erm

anen

t 85

40

895

193

102

205

3833

7

Sem

i-ski

lled

& di

scre

tiona

ry d

ecis

ion

mak

ing

pers

onne

l, Pe

rman

ent

874

091

314

16

014

71

242

Uns

kille

d &

defin

ed d

ecis

ion

mak

ing

pers

onne

l, Pe

rman

ent

00

11

10

00

00

2

Con

tract

(Top

man

agem

ent),

Per

man

ent

10

01

00

00

00

1C

ontra

ct (S

enio

r man

agem

ent),

Per

man

ent

50

05

01

00

10

6C

ontra

ct (P

rofe

ssio

nally

qua

lifie

d), P

erm

anen

t 27

00

279

90

09

146

Con

tract

(Ski

lled

tech

nica

l), P

erm

anen

t 10

00

100

230

023

033

Con

tract

(Sem

i-ski

lled)

, Per

man

ent

270

027

115

00

150

43

TOTA

L53

315

655

410

461

018

363

161

1,35

0

TAB

LE 5

.3 R

ecru

itmen

t

Occ

upat

iona

l Ban

dsM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Top

man

agem

ent,

Perm

anen

t 0

00

00

10

01

01

Top

man

agem

ent,

Tem

pora

ry

10

01

10

00

00

2Se

nior

man

agem

ent,

Perm

anen

t3

02

50

10

01

06

Seni

or m

anag

emen

t, Te

mpo

rary

1

00

10

00

00

01

Prof

essio

nally

qua

lified

& e

xper

ienc

ed s

peci

alist

s &

mid

dle

man

agem

ent,

Perm

anen

t 19

10

2014

170

017

051

Pr

ofes

siona

lly q

ualifi

ed &

exp

erie

nced

spe

cial

ists

& m

iddl

e m

anag

emen

t, Te

mpo

rary

0

00

01

00

00

01

Skille

d te

chni

cal &

aca

dem

ical

ly q

ualif

ied

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s &

fore

men

, Per

man

ent

131

014

214

00

140

30

Sem

i-ski

lled

& di

scre

tiona

ry d

ecis

ion

mak

ing

pers

onne

l, Pe

rman

ent

131

014

022

00

220

36C

ontra

ct (S

enio

r man

agem

ent),

Per

man

ent

60

06

00

00

00

6C

ontra

ct (P

rofe

ssio

nally

qua

lifie

d), P

erm

anen

t 20

00

204

91

010

135

Con

tract

(Ski

lled

tech

nica

l), P

erm

anen

t 6

00

60

110

011

017

Con

tract

(Sem

i-ski

lled)

, Per

man

ent

80

08

07

10

80

16

TOTA

L90

32

9522

822

084

120

2


227

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Empl

oyee

s w

ith d

isab

ilitie

s 0

00

00

00

00

00

TAB

LE 5

.4 P

rom

otio

n

Occ

upat

ion

Ban

dM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Top

man

agem

ent,

Perm

anen

t 0

00

00

10

01

01

Seni

or m

anag

emen

t, Pe

rman

ent

221

124

820

00

202

54Pr

ofes

sion

ally

qua

lifie

d &

expe

rienc

ed

spec

ialis

ts &

mid

dle

man

agem

ent,

Perm

anen

t

131

32

136

2810

51

010

611

281

Skille

d te

chni

cal &

aca

dem

ical

ly q

ualif

ied

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s &f

orem

en, P

erm

anen

t

471

048

111

78

212

714

190

Sem

i-ski

lled

& di

scre

tiona

ry d

ecis

ion

mak

ing

pers

onne

l, Pe

rman

ent

514

055

387

30

900

148

Uns

kille

d &

defin

ed d

ecis

ion

mak

ing

peso

nnel

, Per

man

ent

10

01

00

00

00

1

Con

tract

(Top

man

agem

ent),

Per

man

ent

10

01

01

00

10

2C

ontra

ct (S

enio

r man

agem

ent),

Per

man

ent

10

01

10

00

00

2C

ontra

ct (P

rofe

ssio

nally

qua

lifie

d),

Perm

anen

t 2

00

20

30

03

05

Con

tract

(Ski

lled

tech

nica

l), P

erm

anen

t 1

00

10

00

00

01

TOTA

L25

79

326

941

334

122

348

2768

5

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Empl

oyee

s w

ith d

isab

ilitie

s 2

00

23

20

02

07

228

TAB

LE 5

.5 T

erm

inat

ion

of e

mpl

oym

ent

Occ

upat

ion

Ban

dM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Top

man

agem

ent,

Perm

anen

t 1

00

10

00

00

01

Seni

or m

anag

emen

t, Pe

rman

ent

30

03

21

00

11

7Pr

ofes

sion

ally

qua

lifie

d &

expe

rienc

ed

spec

ialis

ts &

mid

dle

man

agem

ent,

Perm

anen

t

162

119

97

00

71

36

Prof

essi

onal

ly q

ualif

ied

& ex

perie

nced

sp

ecia

lists

& m

iddl

e m

anag

emen

t, Te

mpo

rary

00

00

10

00

00

1

Skille

d te

chni

cal &

aca

dem

ical

ly q

ualif

ied

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s &

fore

men

, Per

man

ent

20

02

03

00

34

9

Sem

i-ski

lled

& di

scre

tiona

ry d

ecis

ion

mak

ing

pers

onne

l, Pe

rman

ent

10

01

05

00

50

6

Con

tract

(Sen

ior m

anag

emen

t), P

erm

anen

t 4

00

40

10

01

05

Con

tract

(Pro

fess

iona

lly q

ualif

ied)

, Pe

rman

ent

10

01

12

10

30

5

Con

tract

(Ski

lled

tech

nica

l), P

erm

anen

t 2

00

20

40

04

06

Con

tract

(Sem

i-ski

lled)

, Per

man

ent

10

01

01

10

20

3

TOTA

L31

21

3413

242

026

679

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Empl

oyee

s w

ith d

isab

ilitie

s 0

00

00

00

00

00

TAB

LE 5

.6 D

isci

plin

ary

actio

n

Dis

cipl

inar

y A

ctio

nM

ale

Fem

ale

Tota

lN

ot

Avai

labl

eA

fric

anC

olou

red

Indi

anTo

tal B

lack

Whi

teA

fric

anC

olou

red

Indi

anTo

tal B

lack

Whi

teN

umbe

r of e

mpl

oyee

s di

scip

lined

100

010

28

10

80

021

TOTA

L10

00

102

81

08

0


229

TAB

LE 5

.7 S

kills

dev

elop

men

t

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Legi

slat

ors,

sen

ior 0

ffici

als

and

man

ager

s 7

20

91

30

03

013

Prof

essi

onal

s 31

01

322

311

032

268

Tech

nici

ans

& as

soci

ate

prof

essi

onal

s 41

10

422

330

033

178

Cle

rks

231

024

098

65

109

313

6Se

rvic

e &

sale

s w

orke

rs

20

02

02

00

20

4Sk

illed

agric

ultu

re &

fish

ery

wor

kers

0

00

00

00

00

00

Cra

ft &

rela

ted

trade

s w

orke

rs

00

00

00

00

00

0Pl

ant &

mac

hine

ope

rato

rs &

ass

embl

ers

00

00

00

00

00

0

Elem

enta

ry o

ccup

atio

ns

50

05

03

00

31

9

TOTA

L 10

94

111

45

170

75

182

730

8

Occ

upat

ion

Cat

egor

yM

ale

Fem

ale

Tota

l

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l Bla

ckW

hite

Empl

oyee

s w

ith d

isab

ilitie

s 0

00

00

00

00

00

TAB

LE 6

.1 P

erfo

rman

ce re

war

ds b

y ra

ce, g

ende

r and

dis

abili

ty

Dem

ogra

phic

sN

umbe

r of

Ben

efic

iarie

sTo

tal E

mpl

oym

ent

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Cos

t (R

'000

)Av

erag

e C

ost p

er

Ben

efic

iary

(R)

Afric

an, F

emal

e 30

260

949

.63,

102

10,2

72Af

rican

, Mal

e 22

353

042

.13,

183

14,2

72As

ian,

Fem

ale

23

66.7

2010

,214

Asia

n, M

ale

16

16.7

2424

,084

Col

oure

d, F

emal

e 14

1877

.811

17,

910

Col

oure

d, M

ale

1015

66.7

105

10,4

98To

tal B

lack

, Fem

ale

318

630

50.5

3,23

310

,167

Tota

l Bla

ck, M

ale

234

551

42.5

3,31

214

,152

Whi

te, F

emal

e 58

6195

.160

810

,489

Whi

te, M

ale

5610

155

.41,

287

22,9

78Em

ploy

ees

with

a d

isab

ility

77

100.

080

11,3

93

TOTA

L 67

31,

350

49.9

8,52

012

,659

230

TAB

LE 6

.2 P

erfo

rman

ce re

war

ds b

y sa

lary

ban

d fo

r per

sonn

el b

elow

sen

ior m

anag

emen

t ser

vice

Sala

ry B

and

Num

ber o

f B

enef

icia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R'0

00)

Aver

age

Cos

t per

B

enef

icia

ry (R

)Sk

illed

(Lev

els

3-5)

14

624

260

.361

34,

199

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

20

633

761

.11,

434

6,96

1H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

) 28

352

953

.54,

926

17,4

06C

ontra

ct (L

evel

s 3-

5)

043

00

0C

ontra

ct (L

evel

s 6-

8)

233

6.1

168,

000

Con

tract

(Lev

els

9-12

) 6

4613

.015

325

,500

Perio

dica

l rem

uner

atio

n 0

860

00

Abno

rmal

app

oint

men

t 0

462

00

0

TOTA

L64

31,

778

36.2

7,14

211

,107

* Onl

y le

vels

bel

ow

SMS

* Inc

lusi

ve o

f abn

orm

al a

ppoi

ntm

ents

TAB

LE 6

.3 P

erfo

rman

ce re

war

ds b

y cr

itica

l occ

upat

ion

Crit

ical

Occ

upat

ions

Num

ber o

f B

enef

icia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R'0

00)

Aver

age

Cos

t per

B

enef

icia

ry (R

)Ad

min

istra

tive

rela

ted

pers

onne

l73

131

55.7

1,11

015

,205

Agric

ultu

re, a

nim

al, o

cean

ogra

phy,

fore

stry

& o

ther

sci

ence

s pe

rson

nel

43

133.

336

9,00

0Bi

olog

ists

, bot

anis

ts, z

oolo

gist

s &

rela

ted

prof

essi

onal

s 12

6717

.917

414

,500

Car

togr

aphe

rs &

sur

veyo

rs

22

100.

020

10,0

00C

lean

ers

in o

ffice

s, w

orks

hops

, hos

pita

ls, e

tc

1317

76.5

433,

308

Clie

nt in

form

cle

rks

(sw

itchb

oard

, rec

eptio

n, in

form

atio

n cl

erks

) 11

1573

.348

4,36

4C

omm

unic

atio

n &

info

rmat

ion

rela

ted

pers

onne

l6

1060

.010

116

,833

Econ

omis

ts

1740

42.5

320

18,8

24En

gine

erin

g sc

ienc

es re

late

d pr

ofes

sion

als

02

00

0Fi

nanc

e &

econ

omic

s re

late

d pr

ofes

sion

als

510

50.0

126

25,2

00Fi

nanc

e &

rela

ted

prof

essi

onal

s 9

2240

.911

412

,667

Fina

nce

cler

ks &

cre

dit c

ontro

llers

12

2646

.258

4,83

3Fo

od s

ervi

ces

aide

s &

wai

ters

2

120

0.0

84,

000

Gen

eral

lega

l adm

inis

tratio

n &

rela

ted

prof

essi

onal

s 1

333

.310

10,0

00H

ead

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er

22

100.

023

811

9,00

0H

uman

reso

urce

s &

orga

nisa

tiona

l dev

elop

men

t & re

late

d pr

ofes

sion

als

3444

77.3

511

15,0

29H

uman

reso

urce

s cl

erks

12

2450

.058

4,83

3H

uman

reso

urce

s re

late

d pe

rson

nel

11

100.

015

15,0

00In

form

atio

n te

chno

logy

rela

ted

pers

onne

l4

757

.156

14,0

00La

ngua

ge p

ract

ition

ers,

inte

rpre

ters

& o

ther

com

mun

unic

atio

n pe

rson

nel

35

60.0

299,

667

Lega

l rel

ated

pro

fess

iona

ls2

450

.050

25,0

00Li

brar

ians

& re

late

d pr

ofes

sion

als

03

00

0


231

Crit

ical

Occ

upat

ions

Num

ber o

f B

enef

icia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R'0

00)

Aver

age

Cos

t per

B

enef

icia

ry (R

)Li

brar

y, m

ail &

rela

ted

cler

ks

4162

66.1

195

4,75

6Lo

gist

ical

sup

port

pers

onne

l 8

1457

.152

6,50

0M

ater

ial-r

ecor

ding

&d

trans

port

cler

ks

1236

33.3

645,

333

Mes

seng

ers,

por

ters

& d

eliv

erer

s 7

1258

.328

4,00

0N

atur

al s

cien

ces

rela

ted

pers

onne

l62

139

44.6

1,01

516

,371

Oth

er a

dmin

istra

tive

& re

late

d cl

erks

& o

rgan

iser

s 72

9476

.641

15,

708

Oth

er a

dmin

istra

tive,

pol

icy

& re

late

d of

ficer

s 32

6053

.330

59,

531

Oth

er in

form

atio

n te

chno

logy

per

sonn

el

621

28.6

6110

,167

Oth

er m

achi

ne o

pera

tors

2

210

0.0

84,

000

Oth

er o

ccup

atio

ns

02

00

0R

ank:

Unk

now

n 0

20

00

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces

pers

onne

l2

1315

.420

10,0

00Sa

fety

, hea

lth &

qua

lity

insp

ecto

rs

7516

645

.21,

547

20,6

27Se

cret

arie

s &

othe

r key

boar

d op

erat

ing

cler

ks

6510

462

.542

36,

508

Secu

rity

offic

ers

3068

44.1

133

4,43

3Se

nior

man

ager

s 26

9926

.31,

018

39,1

54So

cial

wor

k &

rela

ted

prof

essi

onal

s 0

10

00

Trad

e/in

dust

ry a

dvis

ers

& ot

her r

elat

ed p

rofe

ssio

nals

8

1650

.011

314

,125

TOTA

L67

31,

350

49.9

8,51

812

,657

TAB

LE 6

.4 P

erfo

rman

ce re

late

d re

war

ds (c

ash

bonu

s) b

y sa

lary

ban

d fo

r sen

ior m

anag

emen

t ser

vice

SMS

Ban

dN

umbe

r of

Ben

efic

iarie

sTo

tal

Empl

oym

ent

Perc

enta

ge o

f To

tal E

mpl

oym

ent

Cos

t (R

'000

)Av

erag

e C

ost p

er

Ben

efic

iary

(R)

% o

f SM

S W

age

Bill

Pers

onne

l Cos

t SM

S (R

'000

)Ba

nd A

24

8528

.292

63,

858

1.7

54,7

10Ba

nd B

1

263.

856

5,60

00.

320

,807

Band

C

35

6015

85,

267

2.5

6,42

6Ba

nd D

2

450

238

11,9

004.

65,

221

TOTA

L30

120

251,

378

4,59

3.3

1.6

87,1

64

232

TAB

LE 7

.1 F

orei

gn w

orke

rs b

y sa

lary

ban

d

Sala

ry B

and

Empl

oym

ent

at B

egin

ning

Pe

riod

Perc

enta

ge o

f To

tal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge o

f To

tal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge o

f To

tal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l C

hang

e in

Em

ploy

men

t

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

133

.32

50.0

110

0.0

34

1

Perio

dica

l rem

uner

atio

n 1

33.3

250

.01

100.

03

41

Abno

rmal

app

oint

men

t 1

33.3

00

-1-1

00.0

34

1

TOTA

L3

100.

04

100.

01

100.

03

41

TAB

LE 7

.2 F

orei

gn w

orke

rs b

y m

ajor

occ

upat

ion

Maj

or O

ccup

atio

nEm

ploy

men

t at

Beg

inni

ng

Perio

d

Perc

enta

ge o

f To

tal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge o

f To

tal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge o

f To

tal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l Cha

nge

in

Empl

oym

ent

Oth

er o

ccup

atio

ns

266

.72

500

03

41

Prof

essi

onal

s &

man

ager

s 0

01

251

100.

03

41

Tech

nici

ans

& as

soci

ated

pr

ofes

sion

als

133

.31

250

03

41

TOTA

L3

100.

04

100.

01

100.

03

41

TAB

LE 8

.1 S

ick

leav

e fo

r Jan

uary

to D

ecem

ber 2

009

Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

C

ertif

icat

ion

Num

ber o

f Em

ploy

ees

usin

g Si

ck L

eave

% o

f Tot

al

Empl

oyee

s us

ing

Sick

Lea

ve

Aver

age

Day

s pe

r Em

ploy

eeEs

timat

ed C

ost

(R'0

00)

Tota

l num

ber o

f Em

ploy

ees

usin

g Si

ck L

eave

Tota

l num

ber o

f da

ys w

ith m

edic

al

cert

ifica

tion

Skille

d (L

evel

s 3-

5)

1,19

284

.016

719

.77

319

848

1,00

1H

ighl

y sk

illed

prod

uctio

n (L

evel

s 6-

8)

1,47

374

.824

428

.86

659

848

1,10

2

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

2,06

580

.933

739

.76

2,33

584

81,

671

Seni

or m

anag

emen

t (Le

vels

13-

16)

292

81.5

556.

55

732

848

238

Con

tract

(Lev

els

3-5)

79

88.6

172.

05

2084

870

Con

tract

(Lev

els

6-8)

81

81.5

182.

15

3884

866

Con

tract

(Lev

els

9-12

) 28

82.1

70.

84

3784

823

Con

tract

(Lev

els

13-1

6)

1788

.23

0.4

647

848

15

TOTA

L5,

227

80.1

848

100.

06

4,18

784

84,

186


233

TAB

LE 8

.2 D

isab

ility

leav

e (te

mpo

rary

and

per

man

ent e

mpl

oyee

s) fo

r Jan

uary

to D

ecem

ber 2

009

Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

C

ertif

icat

ion

Num

ber o

f Em

ploy

ees

usin

g D

isab

ility

Le

ave

% o

f Tot

al

Empl

oyee

s us

ing

Dis

abili

ty

Leav

e

Aver

age

Day

s pe

r Em

ploy

eeEs

timat

ed C

ost

(R'0

00)

Tota

l num

ber

of d

ays

with

m

edic

al

cert

ifica

tion

Tota

l num

ber

of E

mpl

oyee

s us

ing

Dis

abili

ty

Leav

eSk

illed

(Lev

els

3-5)

28

210

0.0

933

.331

7128

227

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

98

100.

07

25.9

1444

9827

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

186

100.

010

37.0

1924

118

627

Seni

or m

anag

emen

t (Le

vels

13-

16)

510

0.0

13.

75

125

27

TOTA

L57

110

0.0

2710

0.0

2136

857

127

TAB

LE 8

.3 A

nnua

l Lea

ve fo

r Jan

uary

to D

ecem

ber 2

009

Sala

ry B

and

Tota

l Day

s Ta

ken

Aver

age

days

per

Em

ploy

eeN

umbe

r of E

mpl

oyee

s w

ho

took

leav

eSk

illed

(Lev

els

3-5)

46

36.8

419

243

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

67

97.0

019

353

Hig

hly

skille

d su

perv

isio

n (L

evel

s 9-

12)

1059

3.92

1956

8Se

nior

man

agem

ent (

Leve

ls 1

3-16

) 22

79.0

019

117

Con

tract

(Lev

els

3-5)

42

1.00

1138

Con

tract

(Lev

els

6-8)

37

5.00

1135

Con

tract

(Lev

els

9-12

) 46

2.00

1144

Con

tract

(Lev

els

13-1

6)

74.0

08

9

TOTA

L25

,638

.76

181,

407

TAB

LE 8

.4 -

Cap

ped

leav

e fo

r Jan

uary

to D

ecem

ber 2

009

Sala

ry B

and

Tota

l day

s of

ca

pped

leav

e ta

ken

Aver

age

num

ber

of d

ays

take

n pe

r em

ploy

ee

Aver

age

capp

ed

leav

e pe

r em

ploy

ee

as a

t 31

Dec

embe

r 20

08

Num

ber o

f Em

ploy

ees

who

to

ok C

appe

d le

ave

Tota

l num

ber o

f ca

pped

leav

e av

aila

ble

at 3

1 D

ecem

ber 2

008

Num

ber o

f Em

ploy

ees

as a

t 31

Dec

embe

r 200

8

Skille

d (L

evel

s 3-

5)

223

268

1,18

346

Hig

hly

skille

d pr

oduc

tion

(Lev

els

6-8)

55

417

141,

353

80H

ighl

y sk

illed

supe

rvis

ion

(Lev

els

9-12

) 53

441

134,

540

111

Seni

or m

anag

emen

t (Le

vels

13-

16)

367

495

1,36

728

TOTA

L16

64

3240

8,44

326

5

234

TAB

LE 8

.5 L

eave

pay

out

Rea

son

Tota

l Am

ount

(R

'000

)N

umbe

r of

Empl

oyee

sAv

erag

e Pa

ymen

t pe

r Em

ploy

ee (R

)Le

ave

payo

ut fo

r 200

9/10

due

to n

on-u

tilis

atio

n of

leav

e fo

r the

pre

viou

s cy

cle

325

2016

,250

Cap

ped

leav

e pa

yout

s on

term

inat

ion

of s

ervi

ce fo

r 200

9/10

1,

194

7515

,920

Cur

rent

leav

e pa

yout

on

term

inat

ion

of s

ervi

ce fo

r 200

9/10

66

550

13,3

00

TOTA

L2,

184

145

15,0

62

TAB

LE 9

.1 S

teps

take

n to

redu

ce th

e ris

k of

occ

upat

iona

l exp

osur

e

Uni

ts/c

ateg

orie

s of

em

ploy

ees

iden

tifie

d to

be

at h

igh

risk

of c

ontr

actin

g H

IV &

rela

ted

dise

ases

Key

ste

ps ta

ken

to re

duce

the

risk

Non

eN

/a

TAB

LE 9

.2 D

etai

ls o

f hea

lth p

rom

otio

n an

d H

IV/A

IDS

prog

ram

mes

Que

stio

nYe

sN

oD

etai

ls, i

f yes

1. H

as th

e de

partm

ent d

esig

nate

d a

mem

ber o

f the

SM

S to

impl

emen

t the

pro

visi

ons

cont

aine

d in

Par

t VI E

of C

hapt

er 1

of t

he P

ublic

Ser

vice

Reg

ulat

ions

, 200

1? If

so,

pro

vide

he

r/his

nam

e an

d po

sitio

n

No

2. D

oes

the

depa

rtmen

t hav

e a

dedi

cate

d un

it or

des

igna

ted

spec

ific

staf

f mem

bers

to

prom

ote

the

heal

th a

nd w

ell-b

eing

of i

ts e

mpl

oyee

s? If

so,

indi

cate

the

num

ber o

f em

ploy

ees

invo

lved

in th

is ta

sk a

nd th

e an

nual

bud

get a

vaila

ble

for t

his

unit

No

3. H

as th

e de

partm

ent i

ntro

duce

d an

Em

ploy

ee A

ssis

tanc

e or

Hea

lth P

rom

otio

n Pr

ogra

mm

e fo

r its

em

ploy

ees?

If s

o, in

dica

te th

e ke

y el

emen

ts/s

ervi

ces

of th

e pr

ogra

mm

e Ye

sEm

ploy

ed a

n H

IV/A

IDS

Coo

rdin

ator

on

leve

l 9 a

nd

impl

emen

ted

a w

elln

ess

prog

ram

me.

4.

Has

the

depa

rtmen

t est

ablis

hed

(a) c

omm

ittee

(s) a

s co

ntem

plat

ed in

Par

t VI E

.5 (e

) of C

hapt

er 1

of t

he P

ublic

Ser

vice

Reg

ulat

ions

, 200

1? If

so,

ple

ase

prov

ide

the

nam

es o

f the

mem

bers

of t

he c

omm

ittee

and

the

s

take

hold

er(s

) the

y re

pres

ent

Yes

C

ouns

ellin

g ou

tsou

rced

to a

n EA

P se

rvic

e pr

ovid

er

for t

empl

oyee

s an

d th

eir i

mm

edia

te fa

milie

s an

d em

ploy

ees

are

refe

rred

to a

rele

vant

inst

itutio

n if

nece

ssar

y

Yes

Nam

es o

f Com

mitt

ee M

embe

rs –

nam

es??

Rep

rese

ntin

g em

ploy

ees

empl

oyed

at:

Yes

Leth

logo

lo M

okw

ena,

Chr

is M

akam

a, M

aija

Ngo

epe

Hea

d O

ffice

Ye

sTe

fo P

hahl

a, T

hand

o M

oyak

heW

elko

m O

ffice

Yes

Belin

da R

adis

e, B

onan

g Ke

silw

eR

uste

nbur

g O

ffice

Yes

Mdu

duzi

Hlo

pe, N

omus

a Zu

lu, A

udre

y M

atau

, Pie

t M

ashi

yane

, Loy

t Mas

hini

niW

itban

k O

ffice

Yes

Dip

otso

Mth

unyw

a, M

pho

Map

huth

a, N

ozip

ho T

au,

Rho

fhiw

a M

anen

zhe

Braa

mfo

ntei

n O

ffice

Yes

Mar

the

Mut

hath

i, M

atha

pelo

Mai

lula

, Vio

let B

opap

eLi

mpo

po O

ffice

Yes

Julia

Kgw

ele,

Tao

le M

asok

o, W

inni

e R

amph

ela

Kler

ksdo

rp O

ffice


235

Yes

Non

tsin

diso

Tol

wan

a, Z

imkh

itha

Tyal

aPo

rt El

izab

eth

Offi

ceYe

sN

atas

ha W

illiam

sC

ape

Tow

n O

ffice

Yes

Pul

e N

gaqe

la, K

hath

u M

phap

huli

Kim

berle

y O

ffice

Yes

Nko

saza

na M

asek

o, S

ibon

ele

Mkh

ize,

Mus

a Zi

khal

iKw

aZul

u N

atal

Offi

ce5.

Has

the

depa

rtmen

t rev

iew

ed it

s em

ploy

men

t pol

icie

s an

d pr

actic

es to

ens

ure

that

thes

e do

no

t unf

airly

dis

crim

inat

e ag

ains

t em

ploy

ees

on th

e ba

sis

of th

eir H

IV s

tatu

s? If

so,

list

the

empl

oym

ent p

olic

ies/

prac

tices

revi

ewed

Yes

Po

licy

revi

ew p

roce

ss c

urre

ntly

und

erw

ay

6. H

as th

e de

partm

ent i

ntro

duce

d m

easu

res

to p

rote

ct H

IV-p

ositi

ve e

mpl

oyee

s or

thos

e pe

rcei

ved

to b

e H

IV-p

ositi

ve fr

om d

iscr

imin

atio

n? If

so,

list

the

key

elem

ents

of t

hese

m

easu

res

Yes

R

elev

ant p

olic

y de

velo

ped

and

impl

emen

ted

and

an H

IV-p

ositi

ve o

vers

eer e

nsur

es m

ange

men

t co

mpl

ianc

e w

ith th

e po

licy

7. D

oes

the

depa

rtmen

t enc

oura

ge it

s em

ploy

ees

to u

nder

go v

olun

tary

cou

nsel

ling

and

test

ing?

If s

o, li

st th

e re

sults

ach

ieve

d Ye

s

VCT

done

twic

e an

nual

ly; 2

17 H

IV-p

ositi

ve

empl

oyee

s of

who

m 7

0% h

ave

volu

ntar

ily d

iscl

osed

th

eir s

tatu

s

8. H

as th

e de

partm

ent d

evel

oped

mea

sure

s/in

dica

tors

to m

onito

r & e

valu

ate

the

impa

ct o

f its

he

alth

pro

mot

ion

prog

ram

me?

If s

o, li

st th

ese

mea

sure

s/in

dica

tors

.

No

TAB

LE 1

0.1

Col

lect

ive

agre

emen

ts

Subj

ect M

atte

rD

ate

Com

pens

atio

n fo

rove

rtim

e23

/03/

09Jo

b de

scrip

tion

and

job

eval

uatio

n21

/05/

09Em

ploy

men

t rel

atio

ns m

anag

emen

t23

/10/

09In

tegr

ated

fram

ewor

k on

the

poss

ible

impa

ct o

f the

FIF

A So

ccer

Wor

ld C

up24

/11/

09M

atch

ing

and

plac

ing

guid

elin

es24

/11/

09Fa

cilit

ies

man

agem

ent p

olic

y18

/02/

10

TAB

LE 1

0.2

Mis

cond

uct a

nd d

isci

plin

ary

hear

ings

fina

lised

Out

com

es o

f dis

cipl

inar

y he

arin

gsN

umbe

rPe

rcen

tage

of T

otal

Tota

lFi

nalis

ed17

80.9

521

Pend

ing

419

.05

21

TOTA

L21

100.

0021

TAB

LE 1

0.3

Mis

cond

uct a

nd d

isci

plin

ary

hear

ings

Type

of m

isco

nduc

tN

umbe

r of c

ases

com

plet

edPe

rcen

tage

of T

otal

Tota

lIn

subo

rdin

atio

n2

9.52

21Ab

sent

eeis

m2

9.52

21U

se o

f vul

gar l

angu

age

14.

7621

Poor

Wor

k Pe

rform

ance

29.

5221

Mis

use

of G

G v

ehic

le1

4.76

21

236

Type

of m

isco

nduc

tN

umbe

r of c

ases

com

plet

edPe

rcen

tage

of T

otal

Tota

lFa

ilure

to fo

llow

pro

cedu

re1

4.76

21N

on-s

ubm

issi

on o

f log

shee

t2

9.52

21C

orru

ptio

n/ F

raud

419

.05

21M

isre

pres

enta

tion

14.

7621

Failu

re to

sub

mitt

logs

heet

s1

4.76

21In

toxi

cate

d on

dut

y1

4.76

21U

npro

fess

iona

l con

duct

14.

7621

Actin

g w

ithou

t aut

horit

y1

4.76

21Br

ingi

ng th

e D

epar

tmen

t in

disr

eput

e1

4.76

21

TOTA

L21

100.

0021

TAB

LE 1

0.4

Gri

evan

ces

Num

ber o

f grie

vanc

es a

ddre

ssed

Num

ber

Perc

enta

ge o

f Tot

alTo

tal

Fina

lised

2288

.00

25Pe

ndin

g3

12.0

025

TOTA

L25

100.

0025

TAB

LE 1

0.5

Dis

pute

s

Num

ber o

f dis

pute

s ad

dres

sed

Num

ber

% o

f tot

alU

phel

d 1

100.

00D

ism

isse

d 0

0

TAB

LE 1

0.6

Str

ike

actio

n

Strik

e A

ctio

ns-

Tota

l num

ber o

f wor

k da

ys lo

st

0To

tal c

ost (

R’0

00) o

f wor

k da

ys lo

st

0Am

ount

(R’0

00) r

ecov

ered

as

a re

sult

of n

o w

ork

no p

ay

0

TAB

LE 1

0.7

Pre

caut

iona

ry s

uspe

nsio

n

Prec

autio

nary

Sus

pens

ions

-N

umbe

r of p

eopl

e su

spen

ded

6N

umbe

r of p

eopl

e w

hose

sus

pens

ion

exce

eded

30

days

5

Aver

age

num

ber o

f day

s su

spen

ded

148

Cos

t (R

’000

) of s

uspe

nsio

ns

777


237

TAB

LE 1

1.1

Tra

inin

g ne

eds

iden

tifie

d

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent

Lear

ners

hips

Skill

s Pr

ogra

mm

es &

oth

er s

hort

cou

rses

Oth

er fo

rms

of tr

aini

ngTo

tal

Legi

slat

ors,

sen

ior o

ffici

als

& m

anag

ers

Fem

ale

280

130

13M

ale

610

120

12

Prof

essi

onal

s Fe

mal

e 12

40

108

010

8M

ale

104

010

80

108

Tech

nici

ans

& as

soci

ate

prof

essi

onal

s Fe

mal

e 17

60

189

018

9M

ale

268

026

30

263

Cle

rks

Fem

ale

260

02

02

Mal

e 77

06

06

Serv

ice

& sa

les

wor

kers

Fe

mal

e 24

032

032

Mal

e 53

042

042

Skille

d ag

ricul

ture

& fi

sher

y w

orke

rs

Fem

ale

00

00

0M

ale

00

00

0

Cra

ft &

rela

ted

trade

s w

orke

rs

Fem

ale

00

00

0M

ale

00

00

0

Plan

t & m

achi

ne o

pera

tors

& a

ssem

bler

s Fe

mal

e 2

00

00

Mal

e 0

00

00

Elem

enta

ry o

ccup

atio

ns

Fem

ale

2310

10

11M

ale

104

40

8

Gen

der s

ub to

tals

Fe

mal

e 63

710

345

035

5M

ale

573

443

50

439

TOTA

L

1,21

014

780

079

4

TAB

LE 1

1.2

Tra

inin

g pr

ovid

ed

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent

Lear

ners

hips

Skill

s Pr

ogra

mm

es &

oth

er s

hort

cou

rses

Oth

er fo

rms

of tr

aini

ngTo

tal

Legi

slat

ors,

sen

ior o

ffici

als

& m

anag

ers

Fem

ale

280

30

3M

ale

610

102

12

Prof

essi

onal

s Fe

mal

e 12

40

3420

54M

ale

104

034

3670

Tech

nici

ans

& as

soci

ate

prof

essi

onal

s Fe

mal

e 17

60

3439

73M

ale

268

044

3276

Cle

rks

Fem

ale

260

011

237

149

Mal

e 77

024

1741

Serv

ice

& sa

les

wor

kers

Fe

mal

e 24

02

13

Mal

e 53

02

24

238

Skille

d ag

ricul

ture

& fi

sher

y w

orke

rs

Fem

ale

00

00

0M

ale

00

00

0

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent

Lear

ners

hips

Skill

s Pr

ogra

mm

es &

oth

er s

hort

cou

rses

Oth

er fo

rms

of tr

aini

ngTo

tal

Cra

ft &

rela

ted

trade

s w

orke

rs

Fem

ale

00

00

0M

ale

00

00

0

Plan

t & m

achi

ne o

pera

tors

and

ass

embl

ers

Fem

ale

20

00

0M

ale

00

00

0

Elem

enta

ry o

ccup

atio

ns

Fem

ale

2310

412

714

1M

ale

104

586

95

Gen

der s

ub-to

tals

Fe

mal

e 63

710

189

224

423

Mal

e 57

34

119

175

298

TOTA

L

1,21

014

308

399

721

TAB

LE 1

2.1

Inju

ry o

n du

ty

Nat

ure

of in

jury

on

duty

Num

ber

% o

f tot

alR

equi

red

basi

c m

edic

al a

ttent

ion

only

3

75Te

mpo

rary

tota

l dis

able

men

t 1

25Pe

rman

ent d

isab

lem

ent

00

Fata

l 0

0

TOTA

L 4

TAB

LE 1

3.1

Rep

ort o

n co

nsul

tant

app

oint

men

ts u

sing

app

ropr

iate

d fu

nds

Proj

ect T

itle

Tota

l num

ber o

f co

nsul

tant

s th

at w

orke

d on

th

e pr

ojec

t

Dur

atio

n: W

ork

days

Con

trac

t val

ue in

Ran

d

Job

eval

uatio

n of

pos

ts fo

r DM

E fo

r a p

erio

d of

two

year

s3

730

R 2

,000

,000

.00

Appo

intm

ent o

f Car

eway

s G

roup

for t

he E

mpl

oyee

Ass

ista

nt P

rogr

amm

e (E

AP) f

or D

MEf

or a

pe

riod

of th

ree

year

s4

1,09

5R

1,4

85,0

00.0

0

Appo

intm

ent o

f ser

vice

pro

vide

r for

the

deve

lopm

ent o

f the

Bui

sine

ss P

lan

for t

he S

A R

enew

able

En

ergy

Cer

tific

ate

issu

eing

bod

y3

90R

693

,970

.00

The

inve

stig

atio

n in

to th

e ap

plic

atio

n of

a fi

xed

mon

etar

y re

tail

mar

gin

on th

e si

ngle

max

imum

na

tiona

l ret

ail p

rice

for i

llum

inat

ing

para

ffin

290

R 3

97,0

00.0

0

Appo

intm

ent o

f ser

vice

pro

vide

r to

cond

uct f

lu v

acci

natio

n, c

hole

ster

ol d

iabe

tes,

hig

h bl

ood

pres

sure

scr

eeni

ng o

f DM

E em

ploy

ees

for a

per

iod

of tw

o ye

ars

373

0R

200

,000

.00

Proj

ect M

anag

emen

t Tra

inin

g N

QF

Leve

l 05

for D

ME

offic

ials

690

R 9

56,2

50.0

0Ap

prov

al fo

r the

Hea

lth R

isk

Man

ager

for D

ME

- Pro

activ

e H

ealth

Sol

utio

ns4

1095

R 1

55,8

62.7

2Se

cret

aria

l Dev

elop

men

t Tra

inin

g Pr

ogra

mm

e6

183

R 1

,224

,000

.00

The

prod

uctio

n la

yout

/des

ign

and

prin

ting

of th

e D

ME

Annu

al R

epor

t3

365

R 7

41,4

70.8

6


239

Appo

intm

ent o

f a s

ervi

ce p

rovi

der f

or th

e ha

ndlin

g of

ver

ifica

tion

of q

ualif

icat

ion

and

cred

it ch

ecks

fo

r the

DM

E fo

r a p

erio

d of

two

year

s4

730

R 3

9,00

0.00

Proj

ect T

itle

Tota

l num

ber o

f co

nsul

tant

s th

at w

orke

d on

th

e pr

ojec

t

Dur

atio

n: W

ork

days

Con

trac

t val

ue in

Ran

d

Appo

intm

ent o

f a s

ervi

ce p

rovi

der t

o de

velo

p th

e bu

sine

ss p

lan

and

budg

et fo

r the

est

ablis

hmen

t of

the

Nat

iona

l Rad

io A

ctiv

e W

aste

Dis

posa

l Ins

titut

e (N

RW

DI)

260

R 4

56,0

00.0

0

Appo

intm

ent o

f a s

ervi

ce p

rovi

der t

o fa

cilit

ate

the

deve

lopm

ent o

f fra

ud ri

sk p

rofil

e fo

r the

DM

E3

30R

257

,325

.00

The

rene

wal

of t

he m

aint

enan

ce a

nd s

uppo

rt co

ntra

ct3

365

R 5

06,1

60.0

0

Tota

l num

ber o

f pro

ject

sTo

tal i

ndiv

idua

l con

sulta

nts

Tota

l dur

atio

n: W

ork

days

Tota

l con

trac

t val

ue in

R

and

1346

5,65

3R

9,1

12,0

38.5

8

TAB

LE 1

3.2

Ana

lysi

s of

con

sulta

nt a

ppoi

ntm

ents

usi

ng a

ppro

pria

ted

fund

s re

latin

g to

HD

Is

Proj

ect T

itle

Perc

enta

ge o

wne

rshi

p by

H

DI g

roup

sPe

rcen

tage

man

agem

ent

by H

DI g

roup

sN

umbe

r of C

onsu

ltant

s fr

om H

DI g

roup

s th

at w

ork

on th

e pr

ojec

tJo

b ev

alua

tion

of p

osts

for D

ME

for a

per

iod

of tw

o ye

ars

100

100

3Ap

poin

tmen

t of C

arew

ays

Gro

up fo

r the

Em

ploy

ee A

ssis

tant

Pro

gram

me

(EAP

) for

DM

E fo

r a

perio

d of

thre

e ye

ars

2626

4

Appo

intm

ent o

f ser

vice

pro

vide

r for

the

deve

lopm

ent o

f the

bus

ines

s pl

an fo

r the

SA

Ren

ewab

le

Ener

gy C

ertif

icat

e is

suei

ng b

ody

6767

3

The

inve

stig

atio

n in

to th

e ap

plic

atio

n of

a fi

xed

mon

etar

y re

tail

mar

gin

on th

e si

ngle

max

imum

na

tiona

l ret

ail p

rice

for i

llum

inat

ing

para

ffin

00

2

Appo

intm

ent o

f ser

vice

pro

vide

r to

cond

uct f

lu v

acci

natio

n, c

hole

ster

ol d

iabe

tes,

hig

h bl

ood

pres

sure

scr

eeni

ng o

f DM

E em

ploy

ees

for a

per

iod

of tw

o ye

ars

2626

4

Proj

ect M

anag

emen

t Tra

inin

g N

QF

Leve

l 5 fo

r DM

E of

ficia

ls0

06

Appr

oval

for t

he H

ealth

Ris

k M

anag

er fo

r DM

E - P

roac

tive

Hea

lth S

olut

ions

0

4

Secr

etar

ial D

evel

opm

ent T

rain

ing

Prog

ram

me

00

t6Th

e pr

oduc

tion

layo

ut/d

esig

n an

d pr

intin

g of

the

DM

E An

nual

Rep

ort

5050

4Ap

poin

tmen

t of a

ser

vice

pro

vide

r for

the

hand

ling

of v

erifi

catio

n of

qua

lific

atio

n an

d cr

edit

chec

ks

for t

he D

ME

for a

per

iod

of tw

o ye

ars

1313

2

Appo

intm

ent o

f a s

ervi

ce p

rovi

der t

o de

velo

p th

e bu

sine

ss p

lan

and

budg

et fo

r the

est

ablis

hmen

t of

the

Nat

iona

l Rad

io A

ctiv

e W

aste

Dis

posa

l Ins

titut

e (N

RW

DI)

2020

3

Appo

intm

ent o

f a s

ervi

ce p

rovi

der t

o fa

cilit

ate

the

deve

lopm

ent o

f fra

ud ri

sk p

rofil

e fo

r the

DM

E50

503

The

rene

wal

of t

he m

aint

enan

ce a

nd s

uppo

rt co

ntra

ct30

303

240

TAB

LE 1

3.3

Rep

ort o

n co

nsul

tant

app

oint

men

ts u

sing

don

or fu

nds

Proj

ect T

itle

Tota

l num

ber o

f con

sulta

nts

that

wor

ked

on th

e pr

ojec

tD

urat

ion:

Wor

k da

ysD

onor

and

Con

trac

t val

ue in

Ran

d

RSA

300

116

1 ye

arR

4.8

milli

on

Tota

l num

ber o

f pro

ject

sTo

tal i

ndiv

idua

l con

sulta

nts

Tota

l dur

atio

n: W

ork

days

Tota

l con

trac

t val

ue in

Ran

d1

161

year

R 4

.8 m

illion

TAB

LE 1

3.4

Ana

lysi

s of

con

sulta

nt a

ppoi

ntm

ents

usi

ng d

onor

fund

s re

latin

g to

HD

Is

Proj

ect T

itle

Perc

enta

ge o

wne

rshi

p by

HD

I gro

ups

Perc

enta

ge m

anag

emen

t by

HD

I gro

ups

Num

ber o

f Con

sulta

nts

from

HD

I gro

ups

that

wor

k on

the

proj

ect

110

0%10

0%10


DEPAR

TMEN

T OF M

INER

ALS AND

ENER

GY - AN

NU

AL REPO

RT 2009/10

RP69/2010 ISBN: 978-0-621-39345-3

Department of Minerals and Energy

Private Bag x59Arcadia 0007 Tel: 012 444 3217 / 8Fax: 012 444 3160

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